Tag: production mechanism

Questions Related to production mechanism

An entrepreneur must possess good negotiating skills.

  1. True

  2. False


Correct Option: A
Explanation:

An entrepreneur manages the functions of an organization and hence he must possess good negotiating skills in order to ensure coordination over all the departments of the organization.

Entrepreneurs create an atmosphere of enthusiasm and convey a sense of purpose.

  1. True

  2. False


Correct Option: A
Explanation:

An entrepreneur is responsible for motivating the employees .He also convey a sense of purpose in order to project an organizational goal and asks everyone to work hard to achieve that goal.

Which is the most essential function of an entrepreneur?

  1. Supervision

  2. Management

  3. Marketing

  4. Risk bearing


Correct Option: D
Explanation:

An entrepreneur uses his ideas and knowledge to run an organization thus,he bears the risk involved in setting up an organization.

Which of the following includes entrepreneurs cost of production?
I. Wages of labour
II. Interest of capital
III. Cost of raw materials
IV. Depreciation of capital goods 

  1. I and II are correct

  2. II and III are correct

  3. II and IV are correct

  4. All are correct


Correct Option: D
Explanation:
Entrepreneurs' cost of production includes-
1) wages of labour
2) interest of capital(amount of money invested)
3) depreciation of capital goods like machinery
-as all these are to be bear by the entrepreneur or the business entity.

The cost of entrepreneur as a factor of production is _______.

  1. interest

  2. rent

  3. dividend/profit

  4. wages


Correct Option: C
Explanation:

Dividend/profit is known as the cost as a factor of production.For instance, when an entrepreneur invests his ideas to run an organization,then as a result ,profit is derived which is known as the cost of entrepreneur.

Which factor of production brings together the other factors of production to produce economic goods and services?

  1. Land

  2. Entrepreneur

  3. Capital

  4. Labour


Correct Option: B
Explanation:

Entrepreneur uses his/her skills ,knowledge and ideas to bring the other factors of production to produce economic goods and services

An entrepreneur takes the responsibility of _________.

  1. production

  2. supply of a production

  3. management

  4. organisation


Correct Option: D
Explanation:

An entrepreneur uses his skill and knowledge to run an organization and thus, he takes the responsibility of the whole organization in order to ensure the smooth functioning of the organization.