NCERT Solutions for Class 12 Business Studies Business Finance and Marketing Chapter 5

Entrepreneurship Development Class 12

Chapter 5 Entrepreneurship Development Exercise Solutions

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Multiple choice questions : Solutions of Questions on Page Number : 411

Q1 :  

Entrepreneurs undertake

(a) Calculated risk

(b) High risk

(c) Low risk

(d) Moderate and calculated risk


Answer :

Risk refers to the probability that the realised profits are less than the expected profit. When an entrepreneur sets up a venture, he is not sure of its success. There is no assurance of returns or profits. Moreover, he also takes up the risk of choosing entrepreneurship as a career over practice of a profession that involves an assured pay off. However, an entrepreneur always takes calculated risk. As per their skill, training and confidence, they try to minimize the risk. For example, an entrepreneur might enter into prior contracts with the customers and thereby, ensure the sale of the product. Thus, it can be said that entrepreneurs undertake moderate and calculated risk.

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Short answersmultiple choice questions : Solutions of Questions on Page Number : 412

Q1 :  

Clarify the meaning of the terms 'entrepreneur', 'entrepreneurship' and 'enterprise'.


Answer :

The three terms 'entrepreneur', 'entrepreneurship' and 'enterprise' are different yet interrelated to each other. An entrepreneur refers to a person/individual who starts up a business. He is the one who takes up the basic idea of setting up the business. In the process of setting up the business, he undertakes risk, coordinates production resources and undertakes innovation. This whole process of setting up a new business is called entrepreneurship. The final result, that is, the business which is established after undertaking the process of entrepreneurship is called an enterprise. Thus, 'entrepreneur is the person' who undertakes the 'process of entrepreneurship' to set up an 'enterprise'.

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Q2 :  

In economics, which of the following is not a function of the entrepreneur?

(a) Risk-taking

(b) Provision of capital and organization of production

(c) Innovation

(d) Day to Day conduct of business


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Q3 :  

Why is entrepreneurship regarded as a creative activity?


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Q4 :  

Which of the following statements does not clearly distinguish between entrepreneurship and management?

(a) Entrepreneurs found the business; managers operate it

(b) Entrepreneurs are the owners of their business; managers are employees

(c) Entrepreneurs earn profits; managers earn salaries

(d) Entrepreneurship is once for all activity; management is a continuous activity


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Q5 :  

''Entrepreneurs undertake moderate risks''. Elaborate this statement.


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Q6 :  

In the roles and functions of the entrepreneur identified by Kilby, which of the following is not an aspect of 'political administration'?

(a) Dealing with public bureaucracy

(b) Managing human relations within the firm

(c) Introducing new production techniques and products

(d) Managing customer and supplier relations


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Q7 :  

How does entrepreneurship result in increasing the spectrum and scope of economic activities?


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Q8 :  

Which of the following attitudes is not generally associated with successful entrepreneurship

(a) Investing in R and D

(b) Live your business day by day

(c) Innovate and improvise continually

(d) Produce as per customers' requirements


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Short answerslong answers : Solutions of Questions on Page Number : 413

Q1 :  

Describe briefly the steps involved in starting a new business.


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Q2 :  

Examine the nature of relationship between entrepreneurship and economic development.


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Q3 :  

Clarify how motivation and abilities impact an individual's decision to choose entrepreneurship as a career.


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Q4 :  

Describe briefly the role of achievement motivation in entrepreneurship.


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Business Finance and Marketing - Business Studies : CBSE NCERT Exercise Solutions for Class 12th for Entrepreneurship Development will be available online in PDF book form soon. The solutions are absolutely Free. Soon you will be able to download the solutions.

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