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In the given case, Lalmuni have following qualities

• She decided to transform herself into an entrepreneur, 
• She recognised the opportunity and grabbed it. 
• She managed her activities efficiently and effectively. 
• She was a chaser and faced the difficulties calmly. 
• She was self confident. 
• She took the required steps to solve the problems.

Class 12 Business Studies MCQ Questions Entrepreneurship Development with Answers were prepared based on the latest exam pattern. We have provided Entrepreneurship Development Class 12 Business Studies MCQ Questions with Answers to help students understand the concept very well.

Class 11 is the introduction of higher secondary education for the students. For commerce students, business study is an essential subject. They should read this subject sincerely for better higher education. Class 11 business studies syllabus contains important topics. The students should read the syllabus including important questions for class 11 business studies. The chapter wise important questions are essential exam preparation tools, which will help in scoring good marks.

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Intellectual property (IP) refers to the creations of the human mind, like inventions, literary and artistic works, symbols, names, images and designs used in business. Intellectual property is divided into two board categories: industrial property, which includes inventions (patents), trademarks, industrial designs and geographical indications, while the other is copyrights, which includes literary and artistic works, such as novels, poems, plays, films, musical works, artistic works, such as drawings, paintings, photographs and sculptures and architectural designs.

For a successful entrepreneurship, the three attitudes as mentioned in the question that is, livingthe business day by day, innovating and improvising continuously and producing as per customer's requirement are essential. Although, investing in R and D also forms an important aspect, however, it comes only after the other three have been achieved and the enterprise has reached a certain appreciable level. For the short-term success, it is not essential for the entrepreneur to invest in R and D. This is because the investment in Rand D requires a huge investment outlay and thereby, can impede the operations of the business.

Peter Kilby identified certain roles and functions of an entrepreneur in relation to the enterprise. Under the aspect of political administration, he identified three functions- dealing with public bureaucracy, managing human relations within the firm and managing customer and supplier relations. The function of 'Introducing new production techniques and products' was given in the aspect of technology.

(d) Entrepreneurship is once for all activity, The concept behind this is not clear. Through this point, it is difficult to understand the difference between entrepreneurship and management.

The sentence that does not clearly distinguishes between entrepreneurship and management is 'Entrepreneurship is once for all activity; management is a continuous activity'. It is often said that once the business starts up, the role of entrepreneur ends and the manager comes in to run and stabilise it. However, entrepreneurs, even after the business is established, remain attached to the day-to-day activities. They also take up managerial role as and when required. In other words, as the managers are expected to play entrepreneurial role when needed, the entrepreneurs are also expected to handle the managerial function when needed.

Entrepreneurial development is the process of sharpening entrepreneurial skills and knowledge through numerous training and institution-building programmes. 

The process of entrepreneurial development includes: 

i. Training– It involves a set of instructions and guidelines to improve the efficiency of an entrepreneur. It broadens his/her vision by offering experience in different fields and builds the necessary skills of new entrepreneurs. It not only includes training programmes for them but also, imparts knowledge and education to work in an efficient manner. 

ii. Entrepreneurial Development Programme (EDP)- Such programmes help an entrepreneur in acquiring new skills and capabilities along with developing and enhancing the entrepreneurial role so as to perform in a better and efficient manner. 

Some of the objectives of EDPs are as follows. 

1. Encouraging entrepreneurship throughout the nation 

2. Making optimum use of scarce resources 

3. Working towards the betterment of socially backward areas 

4. Generating and providing employment opportunities 

5. Increasing the role of small- and medium-scale industries 

iii. Specialised entrepreneurship development agencies- These are specialised agencies set by the government for the development of entrepreneurs. 

Some of such agencies are as follows. 

1. Institute for Rural Management and Administration 

2. National Small Industries Corporation 

3. Small Industries Service Institutes

According to Cantillon, “An entrepreneur is a person who buys factor services at certain prices with a view to sell the product at uncertain prices”. 

Characteristics of an entrepreneur are as follows: 

i. Foresees future- An entrepreneur can look into the future and identify upcoming opportunities and threats. Thus, this quality helps an entrepreneur to take proper and timely decisions. 

ii. High goals- An entrepreneur always sets high goals and tries to achieve them in the best possible manner. He/she also removes the hindrances that come in his/her way, thereby achieving the objectives so framed. 

iii. Positive attitude- An entrepreneur works with a positive attitude towards all activities. He/she takes all decisions confidently and never loses hopes during failures. 

iv. Hardworking- An entrepreneur works hard to achieve organisational goals on time. He not only works for long hours but also handles the problems independently. 

v. Creative- An entrepreneur is creative in nature. He/she either produces new things or upgrades the existing things in a new way. Thus, innovation is an essential characteristic of a successful entrepreneur. 

vi. Good communicator- A successful entrepreneur needs to be a good communicator as he is required to communicate effectively with various parties such as buyers, sellers and employees.

The following are the characteristics of entrepreneurship :

1. Economic activity : An entrepreneur produces a new product for the consumers as per their needs. He feels the need of this to satisfy human wants and as well in exchange earn a better livelihood. Hence entrepreneurship is an economic activity. 

2. Innovation : Entrepreneurship is an innovation. He brings a new product 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 is of research and development to produce goods to satisfy the customers. 

3. Creative activity : Innovation should have a strong support of creativity. Introducing creativity in producing some new is a big challenge for the entrepreneur. Thus creativity is an essential part of entrepreneurship. 

4. Organization building : It is an activity where various factors of production have to be organized. Different factors like place utility, time utility, form utility, etc. has to be considered to collect them under one roof for new production. 

5. Managerial skill and leadership : Leadership and managerial skills are the most important facts of entrepreneurship. Other skills can be considered secondary. An entrepreneur must have the ability to lead and manage. 

6. Risk bearing : 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 of production. 

7. 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. 

8. Skillful management : The success of any entrepreneurship depends on the management of the organization. With professional management and skilled managers, entrepreneurship becomes a successful activity.

The main objective of an entrepreneur is to achieve organisational objectives by putting in maximum efforts. For this, the entrepreneur needs to have the required skill, ability and willingness. Skill and ability come with educational qualification or training, whereas willingness comes with motivation. Thus, it can be said that motivation is important for the development of an entrepreneur

Attitude builds an entrepreneur – True 

Explanation: 

Yes, it is correct to say that attitude builds an entrepreneur. Attitude of an entrepreneur is judged by how quickly he/she identifies new opportunities. There are some traits that a successful entrepreneur should have in his/her attitude such as passion for the business, trustworthiness, timely decisionmaking quality and strong work ethics.

Need for Power (N-Pow): Need for Power is the concern for influencing people or the behaviour of others for moving in the chosen direction and attaining the envisioned objectives.

Motivation is an important factor in the development of an entrepreneur – True 

Explanation: 

The basic objective of an entrepreneur is to accomplish the goal of the organisation for which he/she needs skills and willingness. Skills can be achieved through education and training, while willingness is something that comes with motivation. An entrepreneur should be motivated from within to work towards the fulfilment of the organisational goal. Hence, we can say that motivation leads to entrepreneurial development.

It was traditionally said that an entrepreneur is born but, in reality, an entrepreneur is not just born but is aspired to become one. Men and women who carry a sense of self- efficacy, are the ones who are capable of being a potential source of entrepreneurship. Herein, achievement motivation plays an important role in aspiring them to become an entrepreneur. What drives an individual towards entrepreneurship is the inclination towards achieving something different. Achievement and excelling over competitive situations proves as a motivating factor to take up entrepreneurship. Moreover, the desire is to accomplish difficult and different situations as independently as possible. 

The platform to fulfil these desires is provided by entrepreneurship. Entrepreneurship drives an individual to excel one's self and overcome the obstacles through successful exercise of talent. That is, entrepreneurship creates a platform for exercising creativity and self-development. Hence, achievement motivation plays an important role in entrepreneurship.

Need for Achievement (N-Ach.): Need for achievement implies a desire to accomplish something difficult. To master, manipulate, or organise physical objects, human beings or ideas.

Entrepreneurial motivation is important to learn, as different individuals are motivated differ-ently and for the success of an enterprise. 

The following needs are to be focused to motivate an entrepreneur.

1. Need for Achievement: It implies a desire to accomplish something. In order to ac-complish the task, one can use the creativity, talent, organise physical resources, explore and use opportunities, overcome from the obstacles and attain a high standard.

2. Need for Power: It is the concern with influencing people or the behaviour of others moving in the same direction to attain the objectives. Need for power means authority required to control the activities of an enterprise.

3. Need for Affiliation, people to conform: It implies among other things, a tendency of the to the wishes and norms of those whom they value. Entrepreneurs are believed to be Iowan affiliation buy they should focus and trace the elements of affiliation for the successful career and for the development of standardised goods and services for others.

4. Need for Autonomy: It means a desire for independence and being responsible and accountable to oneself rather than some external authority for performance-: Everybody needs freedom to some extent as it is very difficult to take orders and work all the time as per the boss.

Introduction: -In simple terms, competence is an underlying characteristic of a person which led to his or her effective or superior performance in a job. The term 'competence' refers to a combination of knowledge, skills, motive, attitude, and habits. Every role or function requires some particular competencies. 

The entrepreneur has to have certain competencies or abilities to have superior results. He may possess certain competencies that can be developed through training, guidance, and experience. 

Following are the important competencies of an entrepreneur: 

1. Initiative: -An entrepreneur is a person who takes the initiative or starts something first to set up an enterprise. The initiative is an inner urge (advice) of a person to do something. People who are innovators usually have the quality of taking initiative. Entrepreneurs take the initiative to carry out new combinations and innovate something new in the process of economic development. 

2. Sound Knowledge: -An entrepreneur always wants to receive new information which can help him update his knowledge and help him in realizing his goals. He also refers to different markets, takes expert advice and does researches to gain complete to bring his ideas into reality. 

3. Proper Planner: -An entrepreneur believes in following a perfect plan to execute his ideas. He develops the future courses of action keeping in mind the goals to be achieved. They believe in a realistic planning and ensure proper execution of the same. This helps them in achieving success. 

4. Efficiency: -An entrepreneur always has high efficiency in whatever act he does. He believes in hard work to attain efficiency. They are ready to try and involve new methods to make the working pattern easier, simpler, better and economical. 

5. Opportunity seeker: -The entrepreneurs regularly keep studying the market and business environment. They observe and wait for the best opportunity for their enterprise or organization in the market. They grab the best opportunities available for their organization. 

6. Self-confidence: -The successful entrepreneurs have complete confidence over their knowledge, skills, abilities, strengths, and competencies. They show great persistence in difficult situations and future uncertainties. 

7. Positive attitude: -An entrepreneur always thinks positively even in failure times. He is never disheartened (discouraged) by failures. He believes in 'Try and try until you succeed' formula. He takes any failures as a new experience and lesson. 

8. Persuasive: -An entrepreneur is in a position to convince his superior and subordinates to get the work done according to his ideas by sound arguments and logical reasoning. He uses his intelligences to convince others the way he want them to do things for him. 

9. Quality consciousness: -Entrepreneur who wishes to succeed believes in quality performances. They do not compromise with moderate or average performance. As they want to be the best, they set high quality standards for themselves. They put in all efforts to achieve excellence for their organization. 

10. Problem solver: -Any problem is taken up as a new challenge and the best strategy is found out to solve the problems. The entrepreneur puts in the best for finding out the most appropriate solution for the same. He must have an intense desire to complete a task or solve a problem.

State the factors motivating the entrepreneur. 

Meaning: Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward.

(A) Internal factors: 

(1) Strong desire to do something. 

(2) Educational background and technical knowledge. 

(3) Business experience in same or related line. 

(B) External factors: 

(1) Financial assistance from government and other knowledge. 

(2) Demand for the product. 

(3) Availability of raw material, labour and machinery. 

(4) Encouragement for big house. 

(5) Profit Margin.

Entrepreneurial attitude is measured in terms of the individual’s attitude toward opportunity recognition. 

Explanation: 

An individual is said to have entrepreneurial attitude when he/she has the characteristic ability of recognising opportunities.

The oxford English dictionary defines an entrepreneur as the director of a business. 

Explanation: 

According to the Oxford English Dictionary, an entrepreneur is defined as the director or manager of a business, as he/she is the person who sets up and manages the business.

The process that motivates a person into action and induces him to continue the course of action for the achievement of goals – Motivation. 

Explanation: 

Motivation is the process of encouraging or urging employees to perform to the best of their capabilities so as to achieve the desired goals of the organisation. It is a continuous process, as human wants are unlimited and never ending.

The Startup India Scheme is a flagship initiative of the Government of India with an objective to carve a strong ecosystem for nurturing innovation and startups in the country. This drive will lead towards sustainable economic growth and generate large-scale employment opportunities. The Government of India aims to empower startups to grow through innovation and design. The scheme specifically aims to: 

1. Trigger an entrepreneurial culture and inculcate entrepreneurial values in the society at large and influence the mindset of people towards entrepreneurship, 

2. Create awareness about the charms of being an entrepreneur and the process of entrepreneurship, especially among the youth, 

3. Encourage more dynamic startups by motivating educated youth, scientists and technologists to consider entrepreneurship as a lucrative, preferred and viable career, and 

4. Support the early phase of entrepreneurship development, including the pre-startup, nascent, as well as, early post startup phase and growth enterprises. 

5. Broad base the entrepreneurial supply by meeting specific needs of underrepresented target groups, like women, socially and economically backward communities, scheduled castes and scheduled tribes; under represented regions to achieve inclusiveness and sustainable development to address the needs of the population at the bottom of the pyramid. Features of the Startup India Scheme of the Government of India are as follows: 

1. Simplification and Handholding: In order to make compliance for startups, friendly and flexible, simplifications are announced. 

2. Startup India Hub: The objective is to create a single point of contact for the entire startup ecosystem and enable knowledge exchange and access to funding. 

3. Legal support and Fasttracking Patent Examination: The scheme for Startups Intellectual Property Protections (SIPP) is envisaged to facilitate protection of patents, trademarks and designs of innovative and interested startups. 

4. Easy Exit: In the event of a business failure and wind up of operations, procedures are being adopted to reallocate capital and resources towards more productive avenues. This will promote experimentation with new and innovative ideas, without fearing complex and long drawn exit process. 

5. Harnessing private sector for incubator setup: To ensure professional management of government sponsored/funded incubators, the government envisages setting up of incubators across the country in PPP mode. 

6. Tax exemption: The profits of startup initiatives are exempted for income tax for a period of three years.

The word ‘entrepreneur’ is derived from the French word ‘entreprende’. 

Explanation: 

The word “entrepreneur” is derived from the French word “entreprende”, which means to undertake. Thus, it can be said that an entrepreneur is a person who undertakes the risk of running a business.

‘Entreprende’ means to undertake. 

Explanation: 

The French word “entreprende”, means to undertake. The word “entrepreneur” is derived from this word. Accordingly, an entrepreneur is a person who undertakes the risk of operating a business; who coordinates with production resources and who undertakes innovation.

The process of enhancing entrepreneurial skills and knowledge through structural training and institution-building programmes – Entrepreneurial development 

Explanation: 

Entrepreneurial development refers to the development of entrepreneurial skills and knowledge through various training and development programmes. The prime objective of entrepreneurial development is to enlarge the base of the entrepreneurs so as to increase the pace at which new ventures are started.

(b) It is generally believed that entrepreneurs take high risks as there is no assured career 10 that and secondly for a higher return the person takes higher risk.

Many people are efficacious in the sense that they have a self-perception along with the confidence of turning the odd situations into the favourable ones. Such individuals have the potential of becoming a successful entrepreneur. Such individuals have the ability required to be an entrepreneur. What they require is a set of motivating factors. There are many enablers and disablers of entrepreneurship such as socio-cultural situations, individual values, etc. which affect the decision to take up entrepreneurship as a career. Four primary drivers of entrepreneurial behaviour have been identified, namely, N-Ach, N-Pow, N-Aff and N-Aut. 

Need for Achievement (N-Ach): An urge to accomplish the competitive situations and to use ones talent to achieve high standards of excellence drives an individual towards entrepreneurship. This need for achievement refers to mastering, manipulating and organising the human resources and ideas in order to attain something difficult. Entrepreneurship creates a platform for exercising creativity and self development. Entrepreneurship drives an individual to excel one's self and to overcome the obstacles through successful exercise of talent. 

Need for Power (N-Pow): Power refers to the authority to influence and direct people. An entrepreneur is the owner of his enterprise and thereby holds the power to control its various activities. Moreover, a successful entrepreneur uses his power to fulfill not only his own personal interests but also at the same time can provide positive impetus to the society as well. 

Need for Affiliation (N-Aff): Every person has a need for affiliation. That is, he desires to conform to the wishes and aspirations of the people whom he/she values. Although entrepreneurs are believed to be low on affiliation but, this is not true. One may not work for self-fulfillment but for his/her family's gratification. For instance, one may wish to carry on with his family business and works to take it to a greater height. This is perceived as the need for affiliation. Thus, entrepreneurship fills in the need for affiliation and motivates a person to satisfy his social needs via choosing entrepreneurship as a career.

Need for Autonomy (N-Aut): Need for autonomy refers to the need for freedom and independence. Unlike other professional practices, entrepreneurship provides the freedom of being responsible to one's own self. In other words, entrepreneurship provides the opportunity of being responsible and accountable to ones' own self rather than working under some external authority. Such a freedom motivates the people to take up entrepreneurship as a career.

In the writings of Richard Cantillon, an entrepreneur is described as an agent who purchases means of production at certain prices, converts them into final products to sell them at uncertain prices in future. Herein, the key element which needs to be taken into consideration is 'uncertainty regarding future'. When an entrepreneur starts up a new business he is never sure of its success. It may happen that the business may flourish in the successful direction or it might also happen that it ruins everything that the entrepreneur has. Although the possibility of absolute ruin is very rare, but the risk is always there. Moreover, when an individual opts for entrepreneurship as a career he gives up career in employment. That is, he gives up a well promised job or profession that provides assured returns. However, in reality what he is taking up is called moderate and calculated risk. When an entrepreneur decides to take up a new business venture, then first of all he weighs the favors against the odds on the basis of his skills, abilities and confidence. On this basis, they generally avoid the situations that are highly risky. Thus, they do undertake risks but such risks are moderate and calculated ones. They take up those ventures where the odds and favors are in equal probability and where they have the confidence of converting a only a 50% probability of success into 100% success. Thus, it can be said that they undertake moderate and calculated risk.

Role of Entrepreneur in contributing to Intellectual Property Rights is all the above. 

1. It encourages creation of new, path breaking inventions, such as cancer cure medicines. 

2. It incentivises inventors, authors, creators, etc., for their work. 

3. It allows the work created by a person to be distributed and communicated to the public only with his/her permission. Therefore, it helps in the prevention of loss of income. 

4. It helps authors, creators, developers and owners to get recognition for their works

i. (c) French

ii. (a) Undertake

iii. (b) Government of India

iv. (a) Agro tourism

i. Inactive

ii. Indoor games

iii. Lack of communication.

A person who is innovator who introduces new combination of means of production – Entrepreneur. 

Explanation: 

An entrepreneur is an innovator, as he introduces a new combination of means of production. This combination of means of production can be made by introducing new products, new techniques, new markets, new sources of raw materials, etc.

Entrepreneurs undertake ‘moderate risks’. It implies that an entrepreneur assures various supply of the projects, agrees to pay salaries, wages, rent whether the venture success or not. Secondly, the person who opted a career in entrepreneurship takes a bigger risk as there is no assured payoff. It is said that it is a 50 : 50 situation means loss and profit both are unpredictable.

Success depends upon the observations, calculations of risk, skills and confidence. Risk is not centred to one problem. It involves many issues like fluctuation in price, taste and preference fashion, risk of strikes, lock outs etc. It becomes the essential feature of the entrepreneurship which is to be focused more and more.

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.

The above columns can be correctly matched as:

Explanation :

a. Entrepreneurship is an economic activity, as an entrepreneur produces goods and services and sells them in the market with the objective of earning profits. Hence, we can say that it is an economic activity. 

b. An entrepreneur is highly optimistic, as he/she never loses hope in times of failure and quickly learns from his/her mistakes. He/she looks at things with a positive attitude. 

c. Sense of belonging is an external value. It is a part of the List of Values (LOV), which was prepared by some researchers. Other values of LOV include excitement, fun and enjoyment in life, warm relationships with others, self-fulfilment, sense of accomplishment, feeling of being well respected, security and self-respect. 

d. Self-fulfilment is an internal value. Other internal values also include sense of accomplishment and self-respect. 

e. Motivation can be positive as well as negative. A person can be motivated using positive techniques like rewards, incentives and promotions and negative techniques like warning and demotions. The kind of motivation to be followed depends on the needs and attitude of the employee.

i. Business / Enterprise

ii. 2016.

Agro tourism is the idea to bring urban residents to rural areas for leisure travel and spending.

i. False

ii. True

iii. True

iv. True

v. False.

A function of creating something new for an economic activity – Innovation. 

Explanation: 

Innovation is one of the most important functions of an entrepreneur. Through innovation, the entrepreneur either produces new goods and services or upgrades the existing goods and services as per new trends with a view of creating something new for the society.

An undertaking or adventure involving uncertainty and risk and requiring innovation – Enterprise. 

Explanation: 

An enterprise is an organisation or industry that works for earning profits. It undertakes the innovation of goods and services along with the risk involved.

i. Enterprise

ii. Innovation

iii. Entrepreneur

iv. Entrepreneur development

v. Motivation

vi. Intrapreneur

John Sturt Mill, a famous economist, described ‘Entrepreneurship’ as founding of a private enterprise in 1948.

The concept of entrepreneurship: entrepreneurship is regarded as one of the four major factors of production, the other three being land, labour and capital. It is derived from French origin, the term ‘entrepreneurship’ (derived from the word ‘entreprende’ meaning ‘to undertake’) pertained not to economics, but to undertaking of military expeditions. So is true of many terms in management (a course of action to beat the competition, the ‘enemy’) and logistics The term ‘entrepreneur’ was first introduced in economics by the early 18th century French economist Richard Cantillon.

He defined the entrepreneur as the “agent who buys means of production at certain prices in order to sell the produce at uncertain prices in the future”In abroader sense it can define entrepreneurship as a systematic, purposeful and creative activity of identifying a need, mobilising resources and organising production with a view to delivering value to the customers, returns for the investors and profits for the self in accordance with the risks and uncertainties associated with business.