ENTREPRENEURSHIP - XI - CUMULATIVE EXAM (2)
ANSWER KEY
1.
2.
3.
4.
5.
Innovation and Creativity.
Innovative Entrepreneurs.
Business conducted electronically, using computer networks.
Authoritarians.
Feasibility studies serve as a base for the preparation of business plan.
First Feasibility takes place before preparation of a business plan
6. Key points from following Explanation
Production:
It is the key function of an entrepreneur. The activities of production are independent of the size of the
undertaking. In a small concern, one person may be undertaking this function whereas, in large organisations, this
activity may be undertaken by various individuals or separate teams. It is the creation of goods and services. It
consists of manufacturing, ancillary and advisory activities.
Finance:
It is the most important aspect in all enterprises. It remains a focus of all business activities. The need for money is
continuous. It starts with the setting up of an enterprise and remains at all times. The development and expansion
of an enterprise rather needs more commitment for funds. It is the duty of the entrepreneur to look and analyse
into the various sources of finance and appropriately arrange for them as and when required.
7.
E-Business – Defined as the conduct of Industry, trade and commerce using the computer networks.
E-Commerce - An electronic communication among enterprises, including customers, suppliers, business
partners, government organizations and financial institutions.
8.
Any one of below
Entrepreneurial motivation may be defined as the process that activates the entrepreneurs to exert a high level of
effort for the achievement of his/her goals.
In other words, the entrepreneurial motivation refers to the drive or forces within an entrepreneur that affects
his/her direction, intensity and persistence of voluntary behavior.
Unsatisfied Needs
Reduction of tension
9.
Tension
Satisfaction of Needs
Drives
Search Behaviour
Feature are (any 2)
Affects behavior
It is invisible
Attitudes are acquired
Attitudes are pervasive
10. A Business Plan is a written summary of various elements involved in starting a new enterprise of how the business
will organize its resources to meet its goals and how it will measure progress.
A business plan serves the following purposes:
a) Provides a blueprint of actions to be taken in future.
b) Guides the entrepreneur in raising the factors of production.
c) Serves as a guide to organizing and directing the activities of the business venture.
d) Helps in measuring the progress of the venture at successive stages.
e) Communicates to investors, lenders, suppliers etc., initiating the programmes of the business.
11.
Managerial functions (Any Two points with explanation)
Planning:
Organizing:
Staffing:
Directing:
Leadership:
Motivation:
Supervision:
Controlling:
Co-ordination:
Communication:
12. Power, Affiliation and Achievement ( with explanation)
13.
The need for Entrepreneurship can be highlighted thus:
• Life-line of a nation:
• Provides innovation:
• Change of growth /Inclusive growth:
• Increased profits:
• Employment opportunities:
• Social Benefits:
14. Common Methods used for Surveying:
(i) Personal interviews
(ii) Telephonic interviews
(iii) Direct mail interviews
(iv) Fax/E-mail interviews
(v) Online interviews
(vi) Questionnaire Development
(vii) Field work
15. Advantages of Entrepreneurship (Any 3 of the following)
• Excitement: Due to its high capacity for risk, there is a lot of adventure for example, Steve Jobs left his
position in Apple Inc., and started Pixar, which later turned out to be a successful venture.
• Originality: Some feel that they can offer a new service or product that no one else has offered before, i.e.,
I-pod and I-pad
• Independence: Some wish to be their own boss and make all the important decisions themselves.
• Rational salary: They are not being paid what they are worth and would rather work on their own and earn
the money they should be earning for their efforts.
• Freedom: Entrepreneurs can work on any idea which they feel will eventually turn out to be a
Successful venture, for instance, Richard Branson’s idea of space mission.
16. Essential attitudes of an Entrepreneur:
• Have passion for the business:
• Set an example of trustworthiness:
• Be flexible, except with core values:
• Don't let fear of failure hold one back:
• Make timely decisions:
• The major company asset is oneself:
• Keep one’s ego under control:
• Believe in oneself:
• Encourage and accept criticism graciously, admitting one’s mistakes:
• Maintain a strong work ethic:
• Rebound quickly from setbacks:
• Periodically getting out of one’s comfort zone to pursue something important:
17. Although there is no singular process to manage the execution of a business plan, there are basic processes and
fundamentals to be followed.
• Once the broad mission, vision and strategy for the organization have been established focusing on its core
competencies, specific quantifiable goals to support the strategy must be formulated.
• The organization must be evaluated. Do you have the right people with the right skills in the right jobs? Should
human resources be reallocated? Do you have the right number of employees in the appropriate departments?
• Identify the key initiatives and broad actions that must be accomplished to achieve the strategy. Identify the
transiEonal issues, or the ―gaps‖, between where you are today and where you plan to be. Push the initiatives
throughout the organization. They must be consistently understood in all functional departments. Every
employee needs to understand his/her individual role in accomplishing some aspect of the plan.
• Develop a budget to support the plan. This may be an iterative process until the right combination of strategy,
tactics, and financial prudence is achieved.
• Communicate well. Get the message out to the entire organization. Develop compensation and reward systems
to support the future vision of the organization. Create decision filters that help guide the organization through
a thought process for those times when the organization wrestles with a concept that may stray from its
strategy.
• Establish a review process. As the markets, customers, competitors, government regulations, economy, etc
evolve; some priorities, and possibly some goals, may change. Go back to the beginning, review each step, and
determine if further changes are necessary.
18. Micro Environment
The internal environment refers to the Primary forces operating in the market that are close or within the
organization, comprising of:
• Producer / seller
• Customer
• Competitors
• Suppliers
• Marketing intermediaries
19. Importance of evaluating ideas
1. To decide what is important
2. To Identify Strengths and Weaknesses of the Idea
3. To make the best use of limited resources
4. To minimize risks while maximizing return
20. Following points in same sequence with explanation
1. Self-Discovery:
2. Identifying opportunities:
3. Generating and evaluating ideas:
4. Planning:
5. Raising Start-up capital:
6. Start-Up:
7. Growth:
8. Harvest:
21. Core Values
1. Innovation and creativity
2. Independence or self-reliance
3. Respect for work
4. Quest for outstanding performance or achievement orientation
22.
Competencies of an Entrepreneur (Any Six points with explanation)
• Initiative:
• Creativity and Innovation:
• Risk Taking and Risk Management:
• Problem Solving:
• Leadership:
• Persistence:
• Quality Performance:
• Information Seeking:
• Systematic Planning:
• Persuasion and Influencing Others:
• Enterprise Launching Competencies:
• Enterprise Management Competencies:
OR
On the basis of Business
1. Business 2. Trading
3. Industry
Technology
1. Technical 2. Non-technical
4. Corporate 5. Agriculture
3. Professional
Others-Generation Based
1. First generation
2. Second generation
3. Third generation
23.
Main Steps Involved in Marketing Research
Step 1 Defining the marketing problem to be tackled and identifying the marketing research problem
involved in
the task.
Step 2 Specifying the information requirement, i.e., preparing a list of the needed information
Step 3 Developing the research design and research produce i.e., determining whether such information is already
available, either in records of the company or in outside sources.
Step 4 Information i.e., select the research instrument to be used, select sample type and size.
Step 5 Analyzing the information and interpreting it in terms of the problem being tackled.
Step 6 Summarize the findings
Step 7 Preparing the research report
OR
Importance of Market Survey
The basic objective of a market survey is to collect information on various aspects of the business. As it involves
gathering, recording and analyzing the data regarding the utility and marketability of the product, its importance
can be judged from the following points:(i) Customer is the King:
To know accurately the customer‘s needs/wants, nature of demand, likes and dislikes and all other related aspects
of movement of products from the stage of production to the point where they get consumed, is possible, with the
help of appropriately designed survey, which can give an edge over competitions.
(ii) Risk reduction:
The systematic and intelligent use of market survey can reduce/minimize the risk of decision making under the
conditions of uncertainly as results are analyzed in order to finalize a business plan.
(iii) Helps attaining objectives:
As a market survey starts with a customized design created to meet the entrepreneur's and his enterprise's specific
needs and strategic objectives, the attainment of goals happen smoothly and timely.
(iv) Market Overview:
A market survey as is a systematic collection, recording, analysis and interpretation of data, relating to the existing
or potential market and various forces of the market on the basis of information composed from survey.
(v) Forecast:
The market survey provides an accurate effective and timely sales forecast and promotes the soundness of
markeEng decisions which is key for success of any enterprise. ―To manage a business well is to manage its future,
and to manage its future is to manage information."
(vi) Facilitates Decision – Making:
A customized market survey is a tool not only to collect an idea about customers, their wants, buying behavior, the
new product and its acceptance, the competitors, but also helps in :
a) Short and long term forecasting
b) Comparative effectiveness studies
c) Packaging research
d) Pricing studies
e) Distribution channel strategies etc.
24. Various challenges faced by women
•
Patriarchal Society
•
Lack of opportunities
•
Enabling technologies for women
•
Social Barrier
•
Attitude of creditors towards women
•
Organized Sector
OR
Elements of a Proposed Business Plan
1. General Introduction
2. Business Venture
3. Organized Plan
4. Production Plan
5. Human Resource Plan
6. Marketing Plan
7. Financial Plan
8. Miscellaneous/Appendix