Entrepreneurial Skills Unit-4 CBSE IT(402) Class-10

entrepreneurial-skills-unit-4-it402-class-10

A. Multiple choice questions.

Q1. Which of the following characteristics should an entrepreneur have?

(a) Innovativeness 

(b) Motivator 

(c) All of these

Ans. (c) All of these

Q2. Which of the following is a disadvantage of entrepreneurship as a career? 

(a) Uncertainty

(b) Independence 

(c) Ambition fulfillment

Ans. (a) Uncertainty

B. Answer the following questions. 

Q1. What is meant by an entrepreneur?

Ans. An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

Q2. State the main characteristics of an entrepreneur.

Ans. Characteristics of an Entrepreneur: Leadership, risk-taking, innovativeness, goal-oriented, decision-maker, highly optimistic, motivator, self-confident, action-oriented, dynamic agent, high achiever, trust in self.

Q3. State the functions of an entrepreneur.

Ans. The function of an Entrepreneur: Innovation, risk-taking, decision-making, organization and management, size and scale of Business unit, the appointment of Managerial and another workforce, to arrange for factors of production and establishing coordination, Procuring raw material and machinery, control and direction, finding a suitable market, new inventions, establishing relations with government, establishing contacts with competitors.

A. Multiple choice questions.

Q1. Which of the following are the functions of an entrepreneur?

(a) Innovation 

(b) Risk-taking 

(c) All of these

Ans. (c) All of these

Q2. Which of the following is an advantage of entrepreneurship as a career?

(a) Risk 

(b) Hardwork 

(c) None of these

Ans. (c) None of these

Q3. The decision-making function of an entrepreneur includes: 

(a) Hardwork 

(b) Risk bearing 

(c) Utilisation of financial resources

Ans. (c) Utilisation of financial resources 

Q4. 'An entrepreneur has to get the work done through others.' Which characteristic of the entrepreneur does this statement depict?

(a) Motivator 

(b) Organiser 

(c) Innovator

Ans. (a) Motivator

B. Short answer questions. 

Q1. Who is an entrepreneur?

Ans. An entrepreneur is an individual who sets up business or businesses, identifies and solves problems, creative, innovative, opportunist, risk-taker, self-starter, and open-minded with the hope of making a profit from the enterprise.

Q2. Explain briefly Innovation as characteristics of an entrepreneur.

Ans. Innovativeness: Customer's requirements and tastes keep on changing, therefore, production should meet the customer's requirements. Thus, innovativeness is another important characteristic of an entrepreneur. He always tries to out strive others by taking initiative in doing new things, i.e., exploring new products, new markets, new raw materials, new methods of production, etc.

C. Short answer questions.

Q2. Do you think an entrepreneur is innovative by nature? Discuss.

Ans. An innovative entrepreneur is a person who discovers totally new things. An innovative owner is a person who creates innovative products and services. An innovative entrepreneur is a person who innovates the business processes in his business. An innovative person is a person who is not afraid to take a risk.

Q3. Do you think an entrepreneur is a leader? Discuss.

Ans. An entrepreneur essentially a leader. According to K.L. Sharma, a psychologist, entrepreneurs are men who exhibit qualities of leadership in solving problems. They have to lead a team for the achievement of goals. Thus, an entrepreneur must have all universally accepted qualities of a leader, i.e., initiative, high energy level, self-confidence, human relations skills, motivational skills, creativity, and keen desire to solve problems.

Q5. Give two advantages of entrepreneurship as a career.

Ans. Advantages of Entrepreneurship as a Career: Independence, ambition fulfillment, excitement, freedom, wealth creation, and status.

Q6. State two disadvantages of entrepreneurship as a career.

Ans. Disadvantages of Entrepreneurship as a Career: Risk, hard work, uncertain income, the problem of finance, and incompetent staff.

D. Long answer questions.

Q1. Write an essay on the qualities of an entrepreneur.

Ans. Qualities/characteristics of a successful entrepreneur: The success of small enterprises and their growth to leading industrial houses can be attributed to entrepreneurs themselves.  Thus, it is important to understand the success story of such entrepreneurs.  There are definitely some common personal characteristics in entrepreneurs.  After carefully scanning the qualities/characteristics of such entrepreneurs the principal ones were noticed, which are as follows:

1. Leadership: An entrepreneur essentially a leader. According to K.L. Sharma, a psychologist, entrepreneurs are men who exhibit qualities of leadership in solving problems. They have to lead a team for the achievement of goals. Thus, an entrepreneur must have all universally accepted qualities of a leader, i.e., initiative, high energy level, self-confidence, human relations skills, motivational skills, creativity, and keen desire to solve problems.

2. Risk-taking: business risks are unpredictable but still an entrepreneur, with rational planning and firm decisions, bears the risks.  An entrepreneur innovates an idea and undertakes the risk of commercially exploiting that idea by investing his funds because he recognizes the fact that - the higher the risk, the greater is the profit.

3. Innovativeness: Customer's requirements and tastes keep on changing, therefore, production should meet the customer's requirements.  Thus, innovativeness is another important characteristic of an entrepreneur.  He always tries to out strive others by taking initiative in doing new things, i.e., exploring new products, new markets, new raw materials, new methods of production, etc. 

4. Goal-oriented: The entrepreneur is goal-oriented. First, he sets a goal to achieve, i.e., to earn profit by producing goods and services, and after reaching one goal he proceeds to another goal.

5. Decision-maker: The entrepreneur is regarded as a decision-maker.  He has to take many decisions to put his business idea into reality.  He recognizes an idea i.e., a product, service, or market, and out of various alternatives before the time he has to make a choice between them.  This involves decision-making to choose the best suitable and profitable alternative.

6. Motivator: An entrepreneur has to get the work done through others.  Hy has to create a spirit of teamwork and motivate them so that he gets wholehearted cooperation.

7. Self-confident: An entrepreneur should have self-confidence in achieving his goals, otherwise he will not be able to convince his fellow beings to achieve his goals.

Q2. Define 'entrepreneur'. What are the various functions of an entrepreneur?

Ans. Entrepreneur: An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

The various functions of an entrepreneur may be classified and described as under

1. Innovation: It includes (a) Introducing new products, (b) Opening new markers (c) New sources of raw material, and (d) New organization structure.

2. Risk-taking: Choosing one among various alternatives, the end results of which are unpredictable.

3. Decision making: Includes: (a) Stabilising organization's aims and objective and changing them according to changing conditions or to make the most profitable, (b) Division of work among subordinates, (c) Utilisation of financial resources, (d) Taking decisions on effective techniques, (e) Selling the produced as per the demand of customers, (f) Relationship with social functionaries.

4. Organisation and management: To organize and manage various economic human factors. Under this category, the following are his functions: (a) Planning the enterprise, (b) Coordination and control, (c) Supervision, and (d) Direction

5. Size and scale of business unit: To decide about the size of a business unit, i.e. wants to establish one production unit or more, etc. which is dependent on the demand of the product. Similarly, he has to decide about the scale of productivity i.e, small scale, middle scale, or large scale.

6. Appointment of managerial and another workforce.

7. To arrange for factors of production and establishing coordination, i.e., land, labor, capital, etc. in appropriate proportion and to maximize output by best utilization of these factors after coordinating them.

Q3. Discuss the importance of entrepreneurship.

Ans. Role and Significance / Importance of Entrepreneur: Enterprising man, great achievers, reinvesting organizations, job creation, first movers, higher productivity, visionary leader, economic prosperity, the backbone of the capitalist system, protector of society's interest, catalytic agent, an ingredient of a modern production system.

Q4. State five myths of entrepreneurship.

'OR'

What are the myths about entrepreneurship?

Ans. Myths of entrepreneurship

1. It is easy to start a business: In reality, starting a successful business is a very difficult and challenging process. The rate of failure of new ventures is high. Even after a period of seven years, only one-third of the enterprises are profitable. However, it is relatively easy to start a very small business than a large company.

2. Lot of money is needed to start a new business: A business can be started with limited money. For example, Infosys Technology was started with only 10,000. In the beginning, you can hire space and equipment.

3. A Startup cannot borrow from banks: Under various schemes like MUDRA, budding entrepreneurs also can raise loans from banks.

4. Talent is more important than an industry: The nature of the industry an entrepreneur chooses has a great effect on success and growth. For example, if you enter an industry wherein competition is cutthroat or materials are scarce, you may fail.

5. Most startups are successful: A large percentage of startups fail. The average profit of an owner-managed firm is 20,000 per month. A very few entrepreneurs earn more than employees.

Q5. Describe six advantages of entrepreneurship as a career.

Ans. The main advantages of adopting entrepreneurship as a career are as follows:

1. Independence: An entrepreneur is his own boss. He can take all decisions himself. He need not obey someone. 

2. Ambition - Fulfilment: Some people want to convert their original ideas into a new product or service, for example, smartphones, electric vehicles, driverless trains, etc. 

3. Excitement: Entrepreneurship involves adventure. Some people resign from their well-paid jobs and launch their own venture due to excitement. 

4. Freedom: Entrepreneurship allows the freedom to try out one's ideas. Freedom-seeking people choose entrepreneurship as a career. 

5. Wealth Creation: Successful entrepreneurs create enormous wealth for themselves and their staff. 

6. Status: Success in entrepreneurship brings considerable fame and prestige. Narayana Murthy, Sunil Mittal, Rana Kapoor, Subhash Chandra, and other successful entrepreneurs are known all over the world.

Q6. Describe five disadvantages of entrepreneurship as a career.

Ans. Disadvantages of Entrepreneurship as a Career:

1. Risk: Entrepreneurship involves a considerable risk of loss. Failure can wipe away all the personal savings and lead to a considerable debt - burden. 

2. Hard Work: An entrepreneur has to work very hard to make the new business successful. His work schedule is unpredictable and he has to work late hours. Spouse and children may have to suffer due to his very busy work schedule. 

3. Uncertain Income: No fixed and regular income is available to an entrepreneur. During the startup stage, it may be difficult even to meet household expenses. 

4. Problem of Finance: Raising the necessary funds is very difficult for a first-generation entrepreneur.

5. Incompetent Staff: A new entrepreneur may not be able to hire and retain qualified and experienced employees. The administrative burden is heavy and faulty decisions can be very harmful to the business.