Tag: land,labour, capital and entrepreneur

Questions Related to land,labour, capital and entrepreneur

An entrepreneur must be ______ to foresee the changes in the market so that the production could be adjusted accordingly.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. careless

  2. farsighted

  3. negligent

  4. ignorant

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Correct Option: B
Explanation:

An entrepreneur must be Farsighted to foresee the changes in the market so that the production could be adjusted accordingly. If a entrepreneur will have the awareness of future possibilities, he will do some adjustment according to it. 

The main functions of an entrepreneur are grouped categories including ______________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. risk-bearing functions

  2. administrative and decision-making functions

  3. distributive functions

  4. all of the above

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Correct Option: D
Explanation:

The entrepreneur brings the other 3 factors of production together in  order to  make a product or provide a service. 

An entrepreneur always attempts to bring change in terms of factor proportions which is called innovation. A manager is concerned only with day-to-day affairs of a going concern.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. True

  2. False

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Correct Option: A
Explanation:

An entrepreneur is a person with an idea who takes the risk to pursue the idea and turn it into reality.On the other hand,manager manages the operations and functions of the organizations.

A person who is always averse to risk-taking cannot be a good __________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. entrepreneur

  2. teacher

  3. government service

  4. doctor

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Correct Option: A
Explanation:

One of the features of an entrepreneur is risk taking, because unless risk is not taken, reward in terms of profits will not be received. 

___________ is one of the most important functions of an entrepreneur.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. Entertainment

  2. Innovation

  3. Administration

  4. Production

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Correct Option: B
Explanation:

Innovation is important for entrepreneur because an entrepreneur leads the rest of the firm and constant innovation is required for being competitive in the market and hence create more income for themselves and the country. 

An entrepreneur must have the qualities of __________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. influencing the people

  2. win their confidence

  3. must understand human nature

  4. all of the above

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Correct Option: D
Explanation:

An entrepreneur must have the capability to interact with the people. The entrepreneur should make the people happy and win their confidence. He should be able to understand the nature of the people. He should react according to the person's behaviour.

Entrepreneurs initiate and sustain the process of economic development in which of the following ways?

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. Capital formation

  2. Improvement in per capita income

  3. Generation of employment

  4. All of the above

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Correct Option: D
Explanation:

All the above mentioned functions are performed by an entrepreneur which lead to economic development. He makes investment in the firm, which leads to rise in capital formation in the economy. This in turn generates employment opportunities and increased production goods and services, further, income is earned by people employed and profit is generated. This improves the per capita income in the income, which will further increase capital formation, and hence, sustain the process of economic development.

What is the most important and specific function of an entrepreneur?

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. Risk-bearing function

  2. Administrative function

  3. Decision-making function

  4. Distributive function

Show answer
Correct Option: A
Explanation:

An entrepreneur has to bear all types of risks connected with the business. The risk may be associated with production, investment, profit or loss of the company, technological and frequent changes in government policies. It is very important function of an entrepreneur.

An entrepreneur must have the qualities of __________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. leadership

  2. risk-taking attitude

  3. innovation

  4. all of the above

Show answer
Correct Option: D
Explanation:
The entrepreneur brings the other 3 factors of production together in  order to  make a product or provide a service. 

A paid manager cannot be described as an ____________.

economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

  1. entrepreneur

  2. industrialist

  3. businessman

  4. none of the above

Show answer
Correct Option: A
Explanation:

A manager is responsible for managing daily tasks and problems in a firm. An entrepreneur build the firm from scratch and requires different set of qualities.