UNIT 1: ENTREPRENEURSHIP-WHAT,WHY AND HOW

FILL IN THE BLANKS:

1. The function of an entrepreneur that compares the actual performance with
standard performance is called as ______________________.
2. An individual who undertakes the risk of starting a new enterprise is
________________.
3. Meenakshi started a business of high heel sandals with push buttons so that heels
can be reduced; it reveals ________________ type of entrepreneurial function.
4. Channelizing the activities of various individuals in the organisation deals with
_____________ function of an entrepreneur.
5. The job of overseeing subordinates at work to ensure the maximum utilisation of
resources deals with _____________ function of an entrepreneur.
6. The psychological process of creating an urge among the subordinates to do
certain things is called ___________________.
7. The term related to creation of goods and services is _________________.
8. Systematic recording of financial transaction to know the financial position of a
business is termed as ______________.
9. Analysing the various sources of finance and arranging for them is called
__________________.
10. Making appointment for various positions defines ___________________
managerial function of an entrepreneur.
11. Taking responsibility for a loss deals with _________________ type of an
entrepreneurial function.
12. Deciding in advance, what to do, when to do, how to do and who will do a
particular job is defined by ________________ type of managerial function.
13. The exchange of ideas, feelings, emotions, knowledge and information between
two or more persons in an organisation is known as ________________.
14. The process of examining strength, weakness and work experience is termed as
________________
15. During the process of entrepreneurship ___________ means researching and
identifying resources needed to turn the idea into viable venture.
16. The last step of entrepreneurship process that includes selling the business is
termed as ___________________.
17. Producing prototypes and test marketing services is done during _____________
step of entrepreneurial process.
18. The process of directing/ guiding and influencing the work of others is known as
_____________.
19. In capitalist and developed countries ____________ play an important role in
economic development.
20. In socialist countries ____________ play an important role in economic
development.
21. In mixed economy both ____________ and private entrepreneurs play an
important role in economic development.
22. The entrepreneur moulds not only the enterprise but also alters the environment
itself, that results in the ________________ growth of an enterprise.
23. An entrepreneur is also known as an agent of _____________ in the society.
24. Entrepreneurship is the yard stick to measure the development of a country, hence
is known as _____________ of a nation.
25. Launching the venture and developing the customer base falls under
______________ phase of process of entrepreneurship.
26. The function of ______________ is to arrange, guide, coordinate, direct and
control the factors of production.
27. The set of activities performed by an entrepreneur is known as
___________________.
28. The economists view ____________ as the fourth factor of production.
29. According to sociologists, entrepreneurs are _______________.
30. The process of creation of an enterprise is known as ____________________.
31. Foreseeing a potentially profitable opportunity and trying to exploit it is
____________ entrepreneurial function.
32. The allocation of productive resources in order to minimise losses is performed
under ________________ entrepreneurial function.
33. The movement of goods and services from producer to ultimate consumer is done
under ________________ commercial function.
34. The provisions of working conditions and welfare measures are ____________
commercial function to maintain a good workforce.
35. A ship on a voyage that has on board, innovative and creative men and women,
who likes to do constructive things, is ______________.
36. The new age business ventures are more ______________ and not just product
based.
37. Entrepreneurs are _____________ who use the process of entrepreneurship to
shatter the status quo of the existing product and services.
38. It is a common myth that start ups can’t be financed with a ____________.
39. A lot of entrepreneur use ______________ than equity to fund their companies.
40. The composition of debt and _____________ is required to fund the companies.

Answers:
1. Controlling
2. Entrepreneur
3. Innovation
4. Coordination
5. Supervision
6. Motivation
7. Production
 8. Accounting
9. Financing
10. Staffing
11. Risk taking
12. Planning
13. Communication
14. Self discovery
15. Planning
16. Harvest
17. Raising start up capital
18. Leadership
19. Private entrepreneurs
20. Government
21. Government
22. Inclusive
23. Progress
24. Life line
25. Start up
26. Organising
27. Entrepreneurship
28. Entrepreneur
29. Innovators
30. Entrepreneurship
31. Innovation
32. Organisation building
33. Marketing
34. Personnel
35. Entrepreneurship
36. Idea centric
37. Innovators
38. Debt
39. Debt
40. Equity

TRUE OR FALSE
1. The function of staffing is to arrange, guide, coordinate, direct and control the activities
of the factors of production.
2. The entrepreneur does not visualise that there are opportunities for a particular type of
business.
3. An entrepreneur reduces the occurrence of unforeseen contingencies.
4. Coordination refers to the exchange of ideas, feelings and emotions between two or more
persons.
5. Supervision refers to channelize the activities of various individuals in the organisation
for the achievements of common goals.
6. Introduction of new combinations of the means of production, new product, new market
for a product id called innovation.
7. An entrepreneur is dissatisfied with routine activities.
8. Entrepreneur always share responsibility with his subordinates.
9. Organisation building refers to the bringing together of various factors of production.
10. Psychological process of creating an urge among the subordinates to do certain things is
called supervision.
11. Controlling is to channelize the activities of various individuals for the achievement of
organisational goals.
12. Innovation is a process of looking for new opportunities in the market.
13. An entrepreneur requires idea which solves pain are of humanity, finance come by its
own.
14. Starting a business is an easy task.
15. Start ups can’t be financed with debt.
16. The growth of a start up depends more on an entrepreneur’s talent than on the business he
chooses.
17. Most enterprises are successful financially.
18. Banks don’t lend money to start ups.
19. Government has implemented various schemes with the idea of providing finance to
budding entrepreneurs.
20. It takes a lot of money to finance a new business.
21. In mixed economy only government is responsible for economic development.
22. In socialist countries only government is responsible for economic development.
23. In capitalist countries, private entrepreneurs play an important role in economic
development.
24. An entrepreneur is also known as an agent of progress in the society.
25. Controlling is a process to channelize the activities of individuals in an organisation.
26. A lot of entrepreneur use debt than equity to fund their companies.
27. The composition of debt and equity will have to be worked upon to fund the companies.
28. As Entrepreneurship involves a lot of risk taking so it is less exciting to choose it as a
career.
29. All the decisions in a business are taken by an entrepreneur.
30. Entrepreneur need not work with their competent staff.
31. An entrepreneur is responsible of providing maximum employment opportunities.
32. Entrepreneurship raises the standard of living.
33. An entrepreneur can increase the profit by reducing the cost.
34. Leadership is the process of creating willingness among subordinates to do certain things.
35. Organising is the basic managerial function.
36. An entrepreneur moulds the enterprise according to the environment but cannot alter the
environment.
37. Moving to new ventures and new challanges is a part of process of entrepreneurship.
38. An entrepreneur eliminates risk caused due to uncertainity.
39. An entrepreneur keeps on bringing the changes in factors of production.
40. An entrepreneur solves economic problem but does not contributes towards peace and
prosperity in the society.

Answers:

1. False (organising)
2. False
3. True
4. False
5. False
6. True
7. True
8. False
9. True
10. False
11. False
12. False
13. True
14. False
15. False
16. False
17. False
18. False
19. True
20. False
21. False
22. True
23. True
24. True
25. False
26. True
27. True
28. False
29. True
30. False
31. True
32. True
33. True
34. False
35. False
 36. False
37. True
38. False
39. True
40. False

MULTIPLE CHOICE QUESTIONS

1. Which is the entrepreneurial function of an entrepreneur?
a. Production
b. Marketing
c. Directing
d. Organisation building
2. Which entrepreneurial function of an entrepreneur foresees potentially profitable
opportunities and exploit them.
a. Risk taking
b. Innovation
c. Planning
d. Personnel
3. Which managerial function guides, coordinate, direct and control the activities of the
factors of production?
a. Planning
b. Staffing
c. Directing
d. Organising
4. Which commercial function is defined as a systematic recording of entrepreneurial
transactions and the financial position of an enterprise?
a. Personnel
b. Marketing
c. Accounting
d. Production
5. A typical start up requires _________minimum amount of capital to get going.
a. Rs.1,50,000/-
b. Rs.2,00,000/-
c. Rs.50,000/-
d. Rs.75,000/-
6. Which one of the following is an advantage of entrepreneurship?
a. Work schedule.
b. Incompetent staff
c. Administration
d. Originality
7. Which step in the process of entrepreneurship includes looking for needs, wants and
problems?
 a. Raising start up capital
b. Identifying opportunities
c. Self discovery
d. Growth
8. Which step in the process of entrepreneurship involves researching and identifying
resources needed to turn an idea into a viable venture?
a. Start up
b. Harvest
c. Planning
d. Self discovery
9. Which managerial function is concerned with the human resources of an enterprise?
a. Planning
b. Staffing
c. Organising
d. Directing
10. Which of the following managerial function is responsible for matching the performance
with the standards?
a. Planning
b. Organising
c. Directing
d. Controlling
11. According to sociologists, entrepreneurs are
a. Innovators
b. Risk takers
c. Fourth factor of production
d. Leaders
12. According to economists, entrepreneurs are
a. Innovators
b. Risk takers
c. Fourth factor of production
d. Leaders
13. The key to a successful business is
a. Wealth
b. Innovative idea
c. Location
d. Experience
14. Which managerial function ensures effective performance by subordinates.

a. Directing
b. Controlling
c. co-ordination
d. communication
15. According to Peter Drucker, an entrepreneur is
a. risk taker
b. Economic agent
 c. Innovator
d. Change Agent
16. Which of the following function deals with taking corrective action
a. Directing
b. controlling
c. Marketing
d. Planning
17. Organization building comes under which category of functions performed by an
entrepreneur
a. Promotional
b. Commercial
c. Managerial
d. entrepreneurial
18. who is responsible for economic development in developed countries
a. Government
b. Private entrepreneurs
c. Private and government
d. Society
19. which function of an entrepreneur is responsible for movement of goods from producer to
consumer
a. Accounting
b. Production
c. Directing
d. Marketing
20. Selection of factory site, plant and machinery and contacting suppliers for raw material
reveals which Promotional function?
a. Discovery of an idea
b. Financing the proposition
c. Assembling the requirements
d. Detailed investigation

ANSWERS

1. D
2. B
3. D
4. C
5. A
6. D
7. B
8. C
9. B
10. D
11. A
12. C
13. B
14. A
 15. D
16. B
17. D
18. B
19. D
20. C

MATCH THE FOLLOWING:

1. Match the following managerial function of an entrepreneur with its meaning:

I Controlling A Ensures effective performance

B Urge among the subordinates to do
certain things
II Supervision C Comparing the actual performance with
standards
D To observe the job of overseeing
subordinates

Q2.Match the following commercial function of an entrepreneur with its meaning:

I Marketing A Consist of manufacturing ancillary and

advisory activities
B Concerned with systematic recording of
financial transaction
II Personal C Employment development and
compensation of employees
D Movement of goods from producers to
ultimate consumers
Q3. Match the following entrepreneurial function of an entrepreneur with the correct concept:

I Innovation A Taking responsibility for multigrain

maggi as a challenge
B Organizing resources
II Risk taking C Maggi with multigrain atta
D Introducing multigrain maggi
Q4. Match the following managerial function of an entrepreneur with its meaning:

I Planning A Arranging the factors of production

B Channelizing the various factors of
production
II Organizing C Determining the course of action
D Appointment for the various positions
Q5 Match the following promotional function of an entrepreneur with its meaning:
 I Discovery of an idea A Deciding the capital structure of an
entrepreneur
B Estimating the total demand
II Assembling the requirement C Arranging for man and machine
D Exploiting new ideas

Q6. Match the following needbased onits requirements:

I Lifeline of a nation A By increasing the sales revenue or

reducing the cost
B Entrepreneurship is the yard stick to
measure the level of development
II Social benefits C Provides the maximum employment
D Increases the slandered of living
Q7. . Match the following stepsbased on process of entrepreneurship

I Identifying the opportunities A Launching the venture

B Selling the business
II Start-ups C Looking for needs and wants
D Growing the business
Q8. Match the following advantages of entrepreneurshipbased on its meaning:

I Independence personalities A New product or service

B Risk and adventure
II Originalities C Own boss
D freedom
Q9. Match the following steps based onthe process of entrepreneurship:

I Self discovery A Use creativity and past experience

B Examining strength and weakness
II Generating and evaluating ideas C Selling the business
D Narrowing to one best idea
Q10. . Match the following steps based on the process of entrepreneurship

I Growth A Launching the venture

B Selling the business and moving to new
venture
II Harvest C Adapting to new circumstances
D Looking for unmet needs
Q11. Match the following steps based on the process of entrepreneurship

I Planning A Examining work experience

B Attracting investors ,venture capitalist
and partners
II Raising start-up capital C Adapting the new circumstances
D Researching and identifying resources
needed
Q12. Match the following advantages of entrepreneurship with its meaning:

I Originality A Take all important decisions

themselves
B High risk high return
II Independence C Offering unique product and services
D Take responsibility for their actions

13. Match the following disadvantages of entrepreneurship with its meaning:

I Salary A Unpredictable work schedule

B There is no one ranked higher in the
chain command
II Administration C Incompetent staff
D Willing to give up the security of
regular pay cheque
Q14. Match the following categories of entrepreneurs who played role in various types of
economies

I Private entrepreneurs A Mixed economy

B Socialist economy
II Government C Capitalist economy
D underdeveloped

Q15.Match the following functions on the basis ofits concept:

I Commercial function A Motivation

B Risk taking
II Managerial function C Financing the preposition
D production
Q16. Match the following entrepreneurial traits with its features:

I Risk taking A Is oriented toward future

B Directs and guides the work of others
II Leadership C Reflects strong urge to be independent
D Works under uncertainty

Q17. Match the following functions performed by entrepreneurs according to the concept
given:

I Promotional functions A production

B Discovery of an idea
II Managerial function C innovation
D organising
Q18. Match the following commercial function of an entrepreneur with its meaning:

I Accounting A Employment and development of

 personnel
B Movement of goods and services to
consumer
II Personnel C Systematic record of financial
transaction
D Creation of goods and services
Q19. Match the following promotional function of entrepreneurswith its meaning:

I Discovery of idea A Estimation of financial requirement and

types of resources
B Assembling the requirement
II Financing the preposition C Estimating the total demand
D Exploiting new opportunities

Q20. Match the following managerial function of an entrepreneuraccording to the concept

given:

I Communication A Channelizing the activities of various

individuals of the organization
B Observing that given instruction are not
followed
II Coordination C Comparing the actual performance with
the standards
D Exchanging of ideas with two or more
persons

ANSWERS

1. ( I-C,II-D)
2. (I-D,II-C)
3. (I-D,II-A)
4. (I-C,II-A)
5. (I-D,II-C)
6. (I-B,II-D)
7. (I-C,II-A)
8. (I-C,II-A)
9. (I-B,II-D)
10. (I-C,II-B)
11. (I-D,II-B)
12. (I-C,II-A)
13. (I-D,II-B)
14. (I-C,II-B)
15. (I-D,II-A)
16. (I-D,II-B)
 17. (I-B,II-D)
18. (I-C,II-A)
19. (I-D,II-A)
20. (I-D,II-A)

PICTORIAL QUESTIONS
1.Identify entrepreneurial function .

a) Risk taking
b) Organization building
c) Innovation
d) Creativity

Q2.Identify the commercial function

a) Finance
b) Marketing
c) Production
d) Accounting
Q3.Identify the managerial function of entrepreneur

a) Communication
b) Motivation
c) Communication
d) Leadership

Q4.Identify the managerial function of entrepreneurs

a) Co-ordination
b) staffing
c) Communication
d) Planning
Q5.Which myth related with entrepreneurship has been clarified from the given picture

a) Bank don’t lend money to start-ups

b) Star-up can’t be financed with debt
c) Starting a business is easy
d) It takes a lot of money to finance a new business

6. Which managerial function has been shown in the picture?

7. Complete the blank on the Entrepreneurial function:

Entrepreneurial Function
Innovation Organisation building

_____________
8. Complete the process of entrepreneurship:
SELF DISCOVERY

IDENTIFYING OPPORTUNITIES

GENERATING AND EVALUATING IDEAS

START UP

GROWTH

HARVEST

9. Which managerial function is depicted in the given picture?

10. Identify the commercial function of entrepreneurs .

ANSWERS:

1. A
2. C
3. D
4. A
5. B
6. Staffing
7. Risk taking
8. Planning, raising start-up capital
9. Supervision
10. Accounting