Screenshot 2022-03-07 at 10.33.06 PM
Screenshot 2022-03-07 at 10.33.06 PM
O.C.M.
Q.5. ANSWER IN BRIEF:
1. Describe any four characteristics of an entrepreneur.
Ans: Entrepreneurs have some special characteristics like creative thinking, imagination, enthusiasm, sincerity etc. The
characteristics of an entrepreneur may be briefly stated as follows: SHORTCODE- (CHITS-RISK-FUTURE VISION)
1) Communication Skills: An entrepreneur needs to communicate with different people like customers, suppliers, creditors,
employees, etc. He must be able to express his ideas and strategies effectively. It is necessary that there is a proper
understanding between the sender and the receiver of the message.
2) Hard Work: An entrepreneur is ready to work hard. It is more necessary when a new venture is started. He has to work
for long hours. Many a times he has to handle the main areas of business independently. This will make him successful.
3) Highly Optimistic: An entrepreneur has to always think positively. He is always hopeful and confident about the market
situations even in failure times. Such positive attitude helps him to run his business successfully.
4) Intellectual Capabilities: An entrepreneur is a creative thinker. He has reasonably good intelligence. He has ability to
analyze business situations. This ability will help him to take proper decisions.
5) Technical Knowledge: An entrepreneur has good technical knowledge about his business. The entrepreneur has the
ability to update himself with the latest knowledge about the product, process and technology.
6) Self Confidence: An entrepreneur has self-confidence. He has positive desires to achieve his goals. Such self-motivation
keeps him strong and confident to face various obstacles.
7) Risk bearing capacity : Successful entrepreneur takes calculated risks. He is ready to face challenges and always seeks
new and more opportunities.
8) Future Vision: The entrepreneur has a good foresight about future market situation. He should also have knowledge
about external business environment. This will help him to take proper decisions according to the situations and changes in
the market. So, he can take timely actions for the same.
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9) Effective Use of owners' Funds: Owners' funds must be utilized in the best possible manner. It should give short term
and long term returns in time.
10) Exploring Business Opportunities: Opportunity is the scope available for business unit to expand, grow and diversify the
business. Businessmen should be alert to find such opportunities. For success of the business it is very crucial and so
whenever they arise it should be explored.
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Ans: Entrepreneurship is a process of setting up a new business organization. It is the process where one decides to build a
business career by finding the market options and mobilizing the available resources. The following are the characteristics
of entrepreneurship. SHORTCODE: (OCM IS GREat)
1)Organization Building-
It is an activity where various factors of production have to be organized. Place utility, time utility, form utility etc. has to be
considered to collect them under one roof for new production.
2) Creative activity-
Innovation should have a strong support of creativity. Introducing creativity in producing something new is a big challenge
for the entrepreneur. Thus creativity is an essential part of entrepreneurship.
3) Managerial skill and leadership-
A person who wants to be a successful entrepreneur should have more passion of doing something new than just earning
profit. Leadership and managerial skills are the most important facets of entrepreneurship. Other skills can be considered
secondary. An entrepreneur must have the ability to lead and manage.
4) Innovation-
Entrepreneurship is an innovation. The introduction of new combination of various factors of productions is innovation. A
new product arrives in the market, uses new production technology, discovers new source of supply of raw materials and
opens a new market for the specific product. In view of changing taste of consumers from time to time, entrepreneurship
focuses on the research and development to produce goods to satisfy the customers.
5) Skillful management-
The success of any entrepreneurship depends on the management of the organization. With professional management and
skilled managers, entrepreneurship becomes successful activity
6) Gap filling function-
The most significant feature of entrepreneurship is gap filling. It is the entrepreneur's job to fill the gap or make up the
deficiencies which always exist in the knowledge about the production function.
7) Risk Bearing-
Uncertainty is defined as a risk which can not be insured against and is incalculable. Entrepreneur is an agent who buys
factors of production at certain prices, in order to combine them into a product, to sell them at uncertain prices in future.
Thus they too are risk-bearing agents in production.
8) Economic activity-
An entrepreneur produces a new product for the customers as per their needs. He feels the need of this to satisfy human
wants and as well in exchange earn a better livelihood. It is a systematically planned activity as per the skills and knowledge
of entrepreneur. Hence entrepreneurship is an economic activity.
forum. The act allows the consumer to be represented by a person who is not a professional advocate. This provision is in
recognition of consumer's right to represent.
2) Right to Redress:
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Along with the right to represent, right of redressal is also given. Only filing of complaint is not enough to give justice to
consumers, so this right implies fair settlement of claims. This right enables the consumer to demand repair or replacement
or compensation for defective products and for poor services. According to consumer protection Act, three tier quasi
judicial consumer dispute redressal machinery is established for settlement of claims such as District Commission at District
level, State Commission at state level and National Commission at national level. Consumers are protected from business
malpractices.
3) Right to Information:
According to this right, consumer should be provided with adequate information about all aspects of goods and services like
price, name of manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual and
safety instruction etc. This right also enables consumer to select right product or service. It is applicable to food products,
medicines, spare parts or any other consumer products or services.
4) Right to be heard:
Every business organization should listen and solve the complaints of consumers. According to this right, consumers have
opportunity to voice their complaint to the consumer forum. Consumers also give suggestions to manufacturer or trader on
certain matters such as quality, quantity, price, packaging etc. Now a days, consumers can file online complaints through
portal or mobile applications.
5) Right to Healthy Environment:
All consumers have a right to healthy and clean environment. According to this right, consumer can demand actions against
the pollution causing business organisations. All consumers have the right to healthy and clean environment in present and
future.
6) Right to Safety:
This right protects consumers against products, production processes and services which are hazardous to health or life. It
includes concern for consumer's long-term interests as well as their immediate requirements. According to this right,
consumer must get full safety and protection to his life and health. This safety should be in relation to medicines, electrical
appliances, food etc. The GOI has given safety standards in the form of AGMARK, lSI, BIS, Hallmark etc.
7) Right to Choose:
The choices available to Indian consumers across the basket of goods and services have multiplied like telecommunications,
travel and tourism, banking, electronics, fast moving consumer goods(FMCG) etc. According to this right, consumer should
be given full freedom to select an article as per his requirement, liking and purchasing capacity. The to choose is related to
the concept of free market economy. As per this right, the seller cannot compel consumer to buy particular product and
hence monopoly is prevented.
8) Right to Consumer Education:
Every consumer has the right to know about consumer rights and solutions to their problems. This right creates consumer
awareness. An aware consumer can make rational choice of goods and services and protect his rights and interests from the
exploitation of unscrupulous businessmen. Thus, consumer education becomes a priority concern. It is necessary to give
education and training regarding prevailing acts and legal processes. The government, media and NGOs play vital roles in
this regard. E.g. 'Jago Grahak Jago' campaign.
9) Right to Protect from unfair business practices:
As per this right all consumers are protected against unfair business practices such as black marketing, profiteering, faulty
weights and measures, exorbitant prices, adulteration etc.
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5) Science, Not Rule of Thumb: In order to increase organizational efficiency, the 'Rule of Thumb' method should be
substituted with the methods developed through scientific analysis of work. Rule of thumb decisions are based on personal
judgments of the manager. Taylor insisted upon scientific method for every small work. This principle is concerned with
selecting the best way of performing a job after scientific analysis of that job and not by trial and error methods. Standard
required time and standard output should be defined by the manager. This will help in saving time and human energy and
will result into expected standard output. According to Taylor, even a small production activity like loading iron sheets into
box cars can be scientifically planned.
6) Cooperation, Not Individualism: This principle emphasizes on mutual cooperation between workforce i.e. employees
and management. Due to cooperation, trust, team spirit etc. internal competition will turn into healthy working
environment. Management should always consider the suggestions given by employees in decision making process.
Employees should be treated as an integral part of organisation in all respects. At the same time employees should resist
themselves from going on strikes and making unnecessary demands from management. They should treat each other as
two pillars of organization.
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