Chapter – 1

Entrepreneurial
Opportunity
 CBSE 2023-24 Sample Paper

Q1. Environmental analysis is required by every firm to determine the opportunities and threats in an
organisation. What is required to process and analyse the so obtained data? (1 Mark)
a. Quantitative analysis
b. Qualitative analysis
c. PESTEL analysis
d. Both Quantitative and Qualitative analysis

Ans d. Both Quantitative and Qualitative analysis

Q2. Assertion (A): The basic test of a successful entrepreneur is the identification of business opportunity
in the environment.
Reason (R): In order to be successful an entrepreneur needs to initiate steps to produce and sell goods and
services to make the best use of that opportunity. (1 Mark)
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false
d. Assertion (A) is false but Reason (R) is true

Ans a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Q3. The United Nations has declared 2023 as the International Year of Millets. Many startup firms were
influenced with this news and have started to create their own version using millets. One such company
was 'Young You'; they created a new variety of product using millets which was targetted at the young
generation. Which of the following stage of enterprise process has the company followed in the above
case? (1 Mark)
a. Opportunity spotting by analysing the needs and problems that exist in the environment
b. Evaluating the ideas received from different sources to find a creative solution
c. Identifying a product or service through innovation
d. Setting up a project and nurturing it to success

Ans c. Identifying a product or service through innovation

Q4. Farheen, also known online as Fairu, has become a well-known figure on social media. This social
media phenom has a staggering 28M Instagram follower, and they support her wholeheartedly. Millions of
social media users enjoy her videos and photographs because she understands how to connect with the
viewers. Fairu frequently uploads photos and videos to her Instagram account to keep her followers
entertained. The fact that this social media celebrity will soon appear in India’s most popular reality show
marks a significant turning point in her career. Raja an entrepreneur has been following Farheen to spot
the latest trend. Which of the following trend is it? (1 Mark)
a. Read Trend
b. Talk trend
c. Watch trend
d. Think trend

Ans a. Read Trend

Q5. As a chemistry enthusiast, Athavan was always very innovative and wanted to try out new things. He
had an idea of making a new stain remover which will help in removing stains very fast from clothes. He did
market research to find out the various stain removers available in the market to foresee the future of the
product in the market. Which of the following step of creative process is he following? (1 Mark)
a. Idea germination
b. Preparation
c. Incubation
d. Illumination

Ans b. Preparation

Q6. The finance minister of India announced in the 2023 budget that the Government has allocated
Rs.16,459 crore to the IT ministry, 40% higher than last year to improve various facilities. Which of the
following PESTEL factor does the above news article indicate? (1 Mark)
a. Political
b. Economic
c. Legal
d. Ecological

Ans a. Political

Q7. Carpet weaving has been a major industry in Kashmir. Bareen wanted that this cottage industry to be
known worldwide and that it gets its due importance. She along with her friends and help from the
government decided to market and sell the same. She organised the required raw material and human
resource for carpet weaving. Identify the element of innovation process that Bareen is performing. (1
Mark)
a. Analytical planning
b. Organising resources
c. Implementation
d. Commercial Application

Ans b. Organising resources

Q8. State any two objectives of problem identification. (2 Marks)

Ans It should clearly state the problem

Identify target group facing the problem
Find the market acceptability of the solution to the problem (Any two)

Q9. Enlist any two ways in which creative ideas can be generated. (2 Marks)

Ans There are basically five ways in which creative ideas can be generated:
1. Develop a new product or service.
2. Improve an existing product or service
3. Find a new process or resource for manufacturing a product.
4. Find new markets for existing products or services.
5. Find a new use of an existing product or service.
(Any two)
Q10. Pooja after finishing her catering course wanted to start her pastry shop in her home town - Jaipur.
She knew that there were a lot of national and international tourists who visit the place whom she
considered as her target customers. She also planned to have a centralised kitchen to make the pastries
and then use vans to transport to various shops all around Jaipur. For the same, she also decided to rent a
warehouse near to her centralised kitchen.
From the above case study, identify and explain the factors which Pooja has paid attention whilst doing
market assessment. (2 Marks)

Ans a. Demand: The demand assessment will be based on the size of market being targeted, i.e., local
markets, market at state level or national/international market. It will also involve a study of the target
groups of consumers, their preferences, tastes and other related variables.
b. Cost and price of product: It is important to determine the cost of the product and its comparison with
available products in the market. Cost variable of competitors in terms of transportation delays, wastage,
storage etc., have to be studied to spot cost advantage. This will influence the delivery mechanism of the
identified product or service.

Q11. An entrepreneur perceives opportunities, synthesizes the available information and analysis
emerging patterns so that it can be shared and supported by all customers, partners, employees and
suppliers. Comment on any two factors involved. (2 Marks)

Ans Factors involved in sensing opportunities

1. Ability to perceive and preserve basic ideas: Spotting an idea often triggers the process of sensing an
opportunity. The following are the various sources which lead to the emergence of basic ideas.
a) Problems: When a problem exists, an idea leads to a solution to resolve that problem, it emerges as a
business opportunity.
b) Change: A change in social, legal, technological aspects etc. leads to new opportunities to start a
business.
c) Inventions: New products or services leads to new business opportunities.
d) Competition: Competition often results in emergence of new and better ideas that result in new
business opportunities.
e) Innovation: Creating new things of value as well as new and creative processes that add value to the
existing products or services. For example, computers to tablets.

2. Ability to harness different sources of information: Various sources like magazines, journals, books,
seminars, trade shows, family members, customers, friends etc. help in getting information that results in
evolution of basic ideas. Bringing together various sources of information and knowledge, and analyze it to
the best possible extent. The analysis helps in the identification of the right opportunity to start a new
business.

3. Vision and creativity: Creativity in innovating a solution and vision. The entrepreneur should be able to
creatively identify an idea to generate a valuable solution to a problem. Once the solution is identified their
vision to convert the solution into business opportunity helps them to move forward, overcoming all the
obstacles. They constantly
a) overcome adversity
b) exercise control over the business
c) make a significant difference.
(Any two)
Q12. Explain in detail the following sources of Idea Fields: (5 Marks)
A. Natural resources
B. Existing products or services
C. Market driven ideas
D. Trading related ideas
E. Service-related ideas

Ans A. Natural resources: Ideas can be generated based on natural resources. A product or service may be
desired from forest resources, agriculture, horticulture, mineral, animal husbandry, wind, sun and human
resource.
B. Existing products or services: A great business idea combines skills with imagination and market
demand. A business opportunity or idea often comes from everyday problems that someone solves.
Successful businesses find a need and fill it by providing a service or product. Entrepreneurs who look at
ways to make an existing product or service better can be as successful as those who create or invent
products.
C. Market driven ideas: Market research is any organized effort to gather information about target
markets or customers. It is a very important component of business strategy. It is a key factor to maintain
competitiveness over competitors. The research helps in creating new products in the market as per the
needs of the customer.
D. Trading related ideas: With increasing consumerism, the scope and nature of trade has enlarged; local
trade, import and export, e-commerce are all making trading a very wide area of enterprise. With the
opening of the market to International Companies, large size departmental stores, chain shops and
umbrella markets have become omnipresent; competition has become intense and to survive in the
market, new entrants will have to acquire skills, competencies and knowledge required to launch, manage
and expand business opportunities.
E. Service-related ideas: Entrepreneurial opportunities are not only restricted to the manufacturer. Service
sector is the most growing field these days, the world over, because of the emerging knowledge in
societies and advancements in Information and Technology. So, new opportunities can be identified by
understanding the linkages to different business activities.

Q13. Explain the first five steps involved in idea and opportunity assessment. (5 Marks)

Ans 1. Product identification: An idea should lead the entrepreneur to a definite product/service which he
can sell. So, the first step is to obtain a concept of the product or service suggested by one idea. We should
also see whether this product is already available in the market or not. If it is, then we should identify the
reason for introducing the same product or service in the market.
2. Application and use: Ideas should be examined for their real-life use and application. If it already exists
in the market, we will have to find out its present use, then we may think of modifying it for better use.
3. Level of operation: This is a crucial test for product/service identification. Depending on the use of the
product/service the entrepreneur will produce it in a cottage industry or a small scale– industry or a large–
scale industry.
4. Cost: What is the per unit cost of the product at particular level of operation? Whether this cost is
comparable with that of other competitive products? These are some of the questions that have to be
answered. This will ultimately decide the sale price.
5. Competition: Any product or service will face market competition at some stage. So, market competition
should be assessed through a study of the trends in demand and supply.
 CBSE 2022-23 Compartment Paper

Q1. Which among the following is an element of micro level of business environment? (1 Mark)
a. Social
b. Customer
c. Political
d. Ecological

Ans b. Customer

Q2. Anita, after her course in fashion designing from National Institute of Fashion Technology (NIFT),
wanted to start a readymade garments unit for infants. For this, she started attending baby shows where
she could talk to the parents of the newly born infants. She made an Instagram profile for her clothing
range where she posted her designs and on the basis of ‘rating’ and ‘likes’ on the designs she planned her
next set of dresses. She started talking to the customers, both online and offline. She also paid attention to
what the customers were saying about competitors' business. Identify the way of trend spotting that had
been used by Anita. (1 Mark)
a. Think trends
b. Read trends
c. Talk trends
d. Watch trends

Ans c. Talk Trends

Q3. The basic test for a successful entrepreneur is: (1 Mark)

a. Identification of business opportunity
b. Identification of a problem
c. Identification of target market
d. Identification of ways to earn profit

Ans a. Identification of business opportunity

Q4. Manan thought of an idea to manufacture solar bins where the accumulated garbage would
decompose automatically using solar power. He was very passionate about the idea and thought about its
implementation in his subconscious mind. He went ahead, studying the pros and cons of making such bins
before launching it. The next step in the creative process which Manan had to follow was: (1 Mark)
a. Incubation
b. Innovation
c. Illumination
d. Verification

Ans c. Illumination

Q5. What is meant by Innovation? Explain the different elements in the innovation process. (5 Marks)

Ans Innovation: It is the process of entrepreneurship which involves the translation of a useful idea into an
application that has commercial value. It takes persistent efforts to work out analytically the details of the
enterprise or service, to develop marketing strategies to organize finances and strategize operations.
Elements in Innovation Process:
Analytical planning – Carefully identifying the product or service features, design as well as the resources
that will be needed.
Resource organization – Obtaining the required resources, materials, technology, human or capital
resources.
Implementation – Applying the resources in order to accomplish the plans and deliver results.
Commercial application – The provision of value to customers, reward employees and satisfy the
stakeholders.
 CBSE 2022-23 All India Paper

Q1. Given below are some of the elements of a business opportunity. Identify the correct combination of
the elements: (1 Mark)
i. Assured market scope
ii. Overcome adversity
iii. Practicability of the idea
iv. Potential of future growth
a. (i), (ii), (iv)
b. (i), (iii), (iv)
c. (ii), (iii), (iv)
d. (i), (ii), (iii)

Ans (b) (i), (iii), (iv)

Q2. Assertion(A): A problem is a road block in a situation that forces the entrepreneur to find its solution.
Reason(R): One of the objectives of problem identification is to identify the target group facing the
problem.
Evaluate the statements given above and choose the most appropriate option from the following: (1 Mark)
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b. Both Assertion (A) and Reason are true, but Reason (R) is not the correct explanation of Assertion (A).
c. Assertion (A) is true, but Reason (R) is false.
d. Assertion (A) is false, but Reason (R) is true.

Ans (b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of
Assertion (A).

Read the article given below and answer the questions from Q3 - Q7

Shopping malls are an integral part of the community and a one-stop-shop for all the consumer’s needs-
from shopping and dining to entertainment and special occasions. Additionally, malls today are
synchronizing with customer’s needs by offering constant engagements, activities and niche campaigns to
cater to each target audience that visits the mall. The latest departmental stores which are opened in malls
also want to provide their customers a wholesome experience. They are often hypermarkets having all
products under one roof. The concept of ‘retailment’ has been around for quite a while, as upscale malls
have slowly transformed into recreational destinations. A plethora of restaurants serving luscious delicacies
has seen massive footfall. Thus, to create memorable experiences, shopping malls must strive to provide a
high level of engagement by focusing heavily on unique experiential content.
The future malls will integrate virtual and augmented reality, will provide highly immersive retail experience
to consumers in the days to come. Deliveries will be carried out using drones and virtual reality will be used
as a sales channel.

Q3. Identify the prominent Idea field from the following sentence: (1 Mark)
'Additionally, malls today are synchronising with customer's needs by offering constant engagement,
activities and niche campaigns to cater to each target audience that visits the mall
a. Natural resources
b. Service-related
c. Market-driven
d. Creative efforts

Ans (c) Market-driven

Q4. 'A plethora of restaurants serving luscious delicacies has seen massive footfall in many malls.' The idea
field reflected in the given statement is: (1 Mark)
a. Natural resources
b. Service-related
c. Market-driven
d. Creative efforts

Ans (b) Service-related

Q5. The idea field which is depicted in the sentence ‘Deliveries will be carried out using drones and virtual
reality will be used as a sales channel’ is: (1 Mark)
a. Natural resources
b. Service- related
c. Market driven
d. Creative efforts

Ans d. Creative efforts

Q6. From the following, which form of business organisation is best suited for owning and managing
shopping malls? (1 Mark)
a. Sole proprietorship
b. Partnership firms
c. Joint Stock company
d. Both (a) and (c)

Ans c. Joint stock company

Q7. From the following, identify the element of macro environment that would play a dominant role in the
transformation of shopping malls in future. (1 Mark)
a. Economic
b. Social
c. Technological
d. Legal

Ans c. Technological

Q8. Read the following newspaper article and identify and explain the two elements of PESTEL model
which have been presented in this article:

A popular brand of mobile phones has used repurposed fishing nets in its latest models of smart phones.
Fishing nets are made of nylon which has the basic property of absorbing moisture and water. Use of this
material would make the phones waterproof and dust resistant. Every year around 6,40,000 tons fishing
nets end up in oceans, posing a serious threat to the marine ecosystem.
According to the Managing Director, Research and Development Department, they are working to replace
fossil-based raw materials with bio-based raw materials which are renewable. The company has been
researching and developing sustainable materials. (2 Marks)

Ans (1) Ecological: It considers the ways in which the organization can produce its goods or services with
minimum environmental damage.
(2) Technological: It is influenced by government spending on research, new discoveries and development,
government and industry focus of technological effort, speed of technological transfer and rates of
obsolescence.
Q9. ‘Ability to perceive and preserve basic ideas’ is an important factor involved in the process of sensing
opportunities. Identify and state any three sources that lead to emergence of these basic ideas. (3 Marks)

Ans (i) Problems: When a problem exists, an idea leads to a solution to resolve that problem, it emerges as
a business opportunity.
(ii) Change: A change in social, legal, technological aspects etc. leads to new opportunities to start a
business.
(iii) Invention: New products or services leads to new business opportunities.
(iv) Competition: Competition often results in emergence of new and better ideas that result in new
business opportunities.
(v) Innovation: Creating new things of value as well as new and creative processes that add value to the
existing products or services. For example, computers to tablets.
(Any three points in complete statements)

Q10. What is meant by innovation? Explain the elements in the innovation process. (5 Marks)

Ans Meaning of Innovation – Translation of a useful idea into an application which has commercial value.
Four elements
i) Analytical Planning - Carefully identifying the product or service features, design as well as the resources
that will be needed.
ii) Organizing Resources - Obtaining the required resources, materials, technology, human or capital
resources
iii) Implementation - Applying the resources in order to accomplish the plans and delivering results.
iv) Commercial Application - The provision of value to customers, reward employees, and satisfy the
stakeholders.

Q11. Why is trendspotting important for the success of any business? Explain the four ways in which an
entrepreneur spots trend. (5 Marks)

Ans Trendspotting is important to understand the market and produce goods in sync with market trends.
1.Read Trend: They regularly read the leading publications and websites affecting their business. This could
include industry publications, trade association sites, major newspapers, key business magazines, thought
leaders and influential bloggers.
2. Talk Trend: Talking to people is an equally important trend-spotting tactic. They get involved in a specific
industry’s trade association and attend events both online and offline. They also take advantage of social
networking tools like social network websites and forums. They even start or join groups on the networks
and see what people are talking about.
3. Watch Trend: There is no substitute for getting out in the marketplace. They make it a point to regularly
go where their target customers meet often.
4. Think Trend: As an entrepreneur begins gathering all their information regularly, they will start to
develop a “trend-spotter mind.” As they absorb what they have read, heard and observed, they will start to
make connections and observations that will lead to business-boosting insights.
 CBSE 2022-23 Sample Paper

Q1. Given below are the factors necessary for developing a successful idea. Identify the correct
combinations from the given options. (1 Mark)
a. Skills and Knowledge
b. Trends and demand
c. Skills, Knowledge and competencies
d. Trends, demand and change

Ans C. Skills, Knowledge and competencies

Q2. Assertion(A): Customers are part of the micro environment. (1 Mark)

Reason(R): Micro environment does not operate in isolation and is one of the levels of business
environment.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

Ans b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion
(A)

Read the following article written on the basis of reopening of economy worldwide in various sectors and
answer the from Q3 - Q7

E-Commerce –The pandemic has given rise to a “homebody economy”, as households make more use of
online orders to avoid crowds. Across Europe’s largest e-commerce markets - France, Germany, and the UK
- purchase behavior has evolved. According to a May study by Kantar, 9% of shoppers make more online
purchases than before; 60% say they will continue to shop online after the outbreak; and 80% say they will
shop online again for non-essential items.
Gaming - The pandemic has accelerated existing trends within the gaming industry, such as the way
gamers purchase and consume, moving from packaged games to downloadable content. Another indicator
of this shift, mobile apps in general have skyrocketed during the crisis and are expected to account for 48%
of the global games market this year, according to Newzoo’s April study.
Automotive industry - As consumers regain the ability to travel in a post-lockdown world, they’ll also be
more concerned with how to commute safely. Despite being caught in the grip of the Covid-19 pandemic,
the automotive industry has been a surprising early riser post-confinement. Marketers have quickly
realised that more consumers are exploring car ownership now that they want to reduce their use of public
transport.
Blogging - Confined to their homes, most people have resorted to creating their own blogging services
related to every field. Home cooks have emerged successfully creating their own reels. Many ready to cook
food companies have resorted to advertising their products through these influential bloggers.
Finance - In the early stages of Covid-19, finance, and especially insurance services, saw a huge spike in
page views as consumers wanted to ensure the safety and health of their families. Following the global
financial uncertainty, consumer behaviour has shifted from a “now” mindset to one that prioritises the
future - thinking more about how to invest and protect savings. As this crisis continues to evolve, finance
will likely continue to be a high priority, and brands have started to identify the current mood and concerns
of their customers through feedback, observations and are deciding as to how best to address them.
Source: Trendspotting-exchange4media.com; June, 2020.
Q3. ‘Cook-it-fast’ - a growing ready to cook product manufacturing company was looking into various
means of advertising their products. The marketing team suggested approaching an influential food
blogger who can use their products in their recipes. Which way of trend spotting does this indicate? (1
Mark)
a. Read Trends
b. Talk Trends
c. Watch Trends
d. Think Trends

Ans a. Read Trends

Q4. “Play your way” a leading game developer company realised that they have to redevelop and enhance
their app experience after reading the above article and listening to customer reviews as well observing
the pattern of people downloading and using the “In Purchase Facilities” within the app. Which way of
trend spotting does this indicate? (1 Mark)
a. Read Trends
b. Talk Trends
c. Watch Trends
d. Think Trends

Ans d. Think Trends

Q5. “According to a May study by Kantar, 9% of shoppers make more online purchases than before; 60%
say they will continue to shop online after the outbreak; and 80% say they will shop online again for non-
essential items.” Which way of trend spotting does this indicate? (1 Mark)
a. Read Trends
b. Talk Trends
c. Watch Trends
d. Think Trends

Ans b. Talk trends

Q6. “Marketers have quickly realised that more consumers are exploring car ownership now that they
want to reduce their use of public transport.” Which way of trend spotting does this indicate? (1 Mark)
a. Read Trends
b. Talk Trends
c. Watch Trends
d. Think Trends

Ans c. Watch trends

Q7. “As this crisis continues to evolve, finance will likely continue to be a high priority, and brands have
started to identify the current mood and concerns of their customers through feedback, observations and
are deciding as to how best to address them.” Which way of trend spotting does this indicate? (1 Mark)
a. Read Trends
b. Talk Trends
c. Watch Trends
d. Think Trends

Ans d. Think trends

Q8. Read the following newspaper article and identify and explain the elements in the PESTEL model which
is present in this article.
India will ban the use of single use plastics from July 1 in order to prevent its harmful effects on
environment and in pursuance of its global climate goals. The production, importation, stocking,
distribution, sale, and use of certain single-use plastic items that have a low utility and a high potential for
littering will henceforth be banned.
The items that face ban are plastic stirrers, plastic plates, plastic cups, plastic glasses, plastic cutlery like
forks, spoons, and knives, plastic trays, wrapping or packaging films around candy boxes, balloon sticks
made of plastic, flags made of plastic, candy sticks, ice-cream sticks, and polystyrene (Thermocol) for
decorations.
The ministry announcement further stated that control rooms at the national and state levels must be
established in order to monitor the unauthorized production, importation, stocking, distribution, sale, and
use of items made of single-use plastic that are forbidden.
Plastic carry bags with a thickness of less than 75 microns are currently illegal to manufacture, import,
stock, distribute, sell, and use, according to the Plastic Waste Management Amendment Rules, 2021.
Plastic carry bags with a thickness of less than 120 microns will be forbidden as of December 31, 2022.
Source: Economic Times, June 28, 2022 (2 Marks)

Ans Ecological: It considers the ways in which the organization can produce its goods or services with
minimum environmental damage. Considering the above article, plastic bag manufacturers would have to
switch to more eco-friendly products which will not cause any harm to the environment.
Legal: It covers areas such as taxation, employment, law, monopoly, legislation and environmental
protection laws. Government has banned all single use plastics and has imposed heavy penalty in case of
any violation.

Q9. To be successful an entrepreneur needs to work on various areas. One such area is generation of ideas
which is very crucial for the ultimate success of the firm. In order to streamline the generation of the ideas
the entrepreneurs will have to use various convenient frames of reference. Comment on any two such
frames. (2 Marks)

Ans Idea fields - Natural resources, Existing product or services, market driven or demand driven ideas,
Trading related ideas, Service-related ideas, Creative efforts (Any two in detail)

Q10. Explain the steps of creative process. (5 Marks)

Ans The process of creativity involves five steps:

1. Idea germination: This is the seeding stage of a new idea. It is the stage where the entrepreneur
recognises that an opportunity exists. The idea germination takes place according to interest, curiosity of
the entrepreneur according to which opportunity is explored and exploited to its best potential. Creative
idea germinates besides the interest, the need of a specific problem or area of study.
2. Preparation: On the basis of the idea, interest and curiosity the need is adjudged by the entrepreneur
and he starts looking for the answer to implement the idea. If the idea is to launch a new product or
service then market research is conducted. That happens because the seed of curiosity has taken form of
an idea, the entrepreneurs foresee the future of the product.
3.Incubation: This is the subconscious assimilation of information. This is the transition period. The
entrepreneur starts thinking about the idea and implementation in his sub-conscious mind.
4. Illumination: In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes
out with viable plan to give practical shape by collecting raw-material, arranging funds, policy–making for
the implementation of idea.
5.Verification: Also called the validation or testing stage. This is where the idea is verified to prove that it
has value. This is the most difficult phase of creativity as obstacles begin to appear. This is the developing
stage in which knowledge is developed into application.
 CBSE 2021-22 Sample Paper

Q1. Which of the following factors does the macro-environment not include? (1 Mark)
a. Political and regulatory factors.
b. Customer needs in a given market.
c. Social and demographic factors.
d. Technological changes

Ans b. Customer needs in a given market.

Q2. An idea should eventually lead to success of the venture of an entrepreneur. Which among the
following ideas will an entrepreneur have to select? (1 Mark)
a. Basic idea
b. Any random idea
c. Idea developed before environmental scanning
d. Idea developed after environmental scanning

Ans d. Idea developed after environmental scanning

Q3. Nelson started an AC repair shop in his area after doing a diploma course. What idea field is it? (1
Mark)
a. Market driven
b. Trading related
c. Service related
d. Creative efforts

Ans c. Service related

Q4. Identify the third element in the innovation process from the given options. (1 Mark)
a. Resource organisation
b. Commercial application
c. Implementation
d. Analytical planning

Ans c. Implementation

Q5. Which is the first stage in the process of innovation? (1 Mark)

a. Idea germination
b. Creativity
c. Preparation
d. Incubation

Ans b. Creativity

Q6. What is the basic test of a successful entrepreneur? (1 Mark)

a. Identification of business opportunity
b. Identification of a problem
c. Identification of target market
d. Identification of ways to earn profit

Ans a. Identification of business opportunity

Q7. Identify the third stage in Opportunity Project Interface. (1 Mark)
a. Scanning of environment
b. Spotting of opportunity
c. Starting a project
d. Identification of product/service

Ans d. Identification of product/service

Q8. What can serve as a basis for formulation of strategies and policies? (1 Mark)
a. Identifying needs
b. Identifying problems
c. Identifying strengths and weakness
d. Identifying threats and opportunities

Ans d. Identifying threats and opportunities

Q9. Which of the following examples is not a part of the social environmental factor? (1 Mark)
a. At the time of Holi, a large number of manufacturing firms get involved in making colours which are used
in the celebration of this colourful festival.
b. A particular channel refrains from showing the advertisement of a particular product as it is banned by
the government.
c. The sale of sarees increases in the months of the year when a large number of marriages take place in
India. The saree manufacturing companies make special plans of sale for these months.
d. a & c only

Ans b. A particular channel refrains from showing the advertisement of a particular product as it is banned
by the government.

Q10. Arvind started his manufacturing unit in Jammu and Kashmir. scarf, both woollen and silk. His
business was not picking up in the markets as desired. He found out the reason his scarves were not selling
was due to their colour. What could be the best source of this information? (1 Mark)
a. Manufacturers.
b. Retailer.
c. Competitors.
d. Government bureau.

Ans b. Retailer

Q11. Ramesh starts his day by reading all newspapers and has a keen interest towards all business news
and articles. He connects the articles with the observations he has made over the years which he knows
will eventually lead to business-boosting insights. Identify the way of trend spotting at this level. (1 Mark)
a. Read Trend
b. Think trend
c. Watch trend
d. Talk trend

Ans b. Think trend

Q12. Assertion (A) : Needs and problems exists in the environment
Reason (R) : Opportunity is spotted by analysing the environment. (1 Mark)
a. A is true but R is false.
b. Both A and R are true, but R is not the correct explanation of A
c. A is true and R is the correct explanation of A
d. Both A and R are false.

Ans b. Both A and R are true, but R is not the correct explanation of A

Q13. Can all ideas be converted into opportunities? (1 Mark)

a. Yes, as ideas lead to opportunity
b. Yes, only if it has assured market scope
c. Yes, only if there is a good market for the product and rate of return on the investment is attractive.
d. Yes, if the entrepreneur has enough financial resources

Ans c. Yes, only if there is a good market for the product and rate of return on the investment is attractive.

Q14. An economic idea which can be implemented to create a business enterprise and earn profits must
possessed with (1 Mark)
A. Practicability of the idea
B. Competence of the entrepreneur to encash it
C. Potential of future growth
a. Only A
b. A and B only
c. A & B and C
d. B & C only

Ans c. A & B and C

Q15. During the Pandemic, the worst hit were the families who were infected by the virus and had no
source for home cooked nutritious food. ‘Chilly Chillz’ is a multi-cuisine chain of restaurants operating
throughout Delhi by a well-established network of outlets. The owner of the chain understood the concern
and started serving 3 course meal to such families on payment basis. The interested customers had to login
the website, select their location and set their menu for the day. This service proved to be a great support
for suffering families. What was the source of generation of basic idea? (1 Mark)
a. Innovation
b. Invention
c. Problem
d. Competition

Ans c. Problem

Q16. George Kutty has a coffee bean processing unit in Kerala. During the pandemic he has learnt different
styles to make coffee. He started improvising his product and range to make coffee premixes in different
varieties like Latte, Mocha, Dalgona which will eventually help him to establish a place for his brand in the
beverage industry. Identify the Idea field used by him (1 Mark)
a. Market driven
b. Trading related
c. Creative efforts
d. Service sector

Ans c. Creative efforts

Q17. Which of the following statements correctly explains the concept of creative efforts? (1 Mark)
1. Develop and improve an existing or new product or service.
2. Compete with an existing product or service
3. Find a new process or resource for manufacturing a product.
a. Both 1,3
b. All 1, 2, 3
c. Both 2,3
d. Only 1

Ans a. Both 1,3

Q18. WX ltd. is in the process of innovating a new pen drive especially for teachers which will have a built-
in antivirus and which can be worn like a watch so it minimises the problem of losing the pen drive. Which
of the given statements aptly describes the situation? (1 Mark)
a. This is trend spotting
b. This is product identification
c. This is problem solving
d. This is problem solving by introducing an innovative product.

Ans b. This is product identification

Q19. ‘Safe for Women’- SFW has been a known brand among working women as the company keeps
introducing various new innovative products for the safety of women. Their latest product is a pen which
can be used as a pocket knife. The product is in huge demand. Which point of importance of scanning the
environment does this news indicate? (1 Mark)
a. Formulation of strategies and policies
b. Tapping useful resources
c. Image building
d. Better performance

Ans c. Image building

Q20. Which of the following factors are involved in sensing opportunities? (1 Mark)
1. Ability to perceive and preserve basic ideas
2. Ability to read the environment
3. Ability to assess the environment
4. Ability to harness different sources of information

a. 1, 2 only
b. 1 only
c. 1,4 only
d. 1, 2, 3 only

Ans c. 1,4 only

Q21. In a bid to send astronauts to Mars, US space agency Nasa has invited applications for four people to
live in a simulated Martian exploration habitat in order to prepare them for the real-life challenges of
future missions to the red planet. Nasa started taking applications for participants to live for a year in Mars
Dune Alpha, a 1,700-square-foot Martian habitat created by a 3D-printer that is inside a building at
Johnson Space Center in Houston. Identify the macro environment factor which has influenced Nasa to
develop Mars Dune Alpha. (1 Mark)
a. Political
b. Social
c. Legal
d. Technological

Ans d. Technological

Q22. Lakshmi Menon was troubled to see the huge waste generated by the scrap material left behind after
stitching Personal Protective Equipment (PPE) gowns. These scrap materials could not be recycled easily.
When she saw this problem, she thought of a solution also. It was to make lightweight bedrolls made from
the scraps of the material. The bedrolls were cheap and durable and within a short span of time, demand
for these bed rolls increased tremendously. What concept is involved in the above case study? (1 Mark)
a. Environment Scanning
b. Problem Identification
c. Trend spotting
d. Market assessment

Ans b. Problem Identification

Q23. Madhu Chandan started the first Organic Mandya store in 2015 on the Bengaluru – Mysuru highway.
Today it has grown into a Rs 25 crore turnover organic retail chain with eight stores. By buying the
agricultural products from the farmers and selling them at ‘Organic Mandya’ stores, Madhu has not only
provided a direct market to the farmers, but also has built a Rs 25 crore turnover organic retail chain.
Which idea field has Madhu Chandan taken up? (1 Mark)
a. Natural resources
b. Service sector
c. Trading related
d. Existing products or services

Ans a. Natural resources

Q24. Monik Ltd., was the market leader in the Mobile Phone industry in 2000. The company was well
known for its affordable phones. In 2007, a new company launched new Mobile models with latest
technologies and captured the market. Monik Ltd., did not expect this and lost the entire market share and
had to close their operations. Which of the following SWOT analysis framework does this case indicate that
Monik Ltd., failed to do? (1 Mark)
a. Strengths
b. Weakness
c. Opportunities
d. Threats

Ans d. Threats

Q25. Hitesh, a fisherman, faced a lot of problems in selling the fish he caught. His entire community was
facing this problem and most of the time they had to dump the fish they caught back into the sea. He read
a newspaper article on how people have started ordering online for most of the essentials. He spoke to his
fellow fishermen about selling their fish online and started their business with a small delivery truck and an
app and slowly and steadily their business started to flourish. What trend has Hitesh spotted? (1 Mark)
a. Read trends
b. Watch trends
c. Talk trends
d. Think trends
Ans a. Read trends

Q26. Suganya wanted the younger generation to understand the nutritional value of traditional food.
Keeping this in mind, she started a ‘Eat To Fit’ - ETF restaurant and it was a successful venture. She opened
many branches all over the state. Seeing her success, other restaurants followed the same model but ‘ETF’
always had the major market share. Which point of importance of the environment does this case imply?(1
Mark)
a. Tapping useful resources
b. Better performance
c. Sensitisation of entrepreneurs to cope up with rapid changes
d. Identification of opportunities to get first mover advantage

Ans d. Identification of opportunities to get first mover advantage

Q27. Fit ltd., has become a well-known brand name in the field of fitness. Their products range from
exercise equipment to protein powders. The company decided to launch a new product in the market
which they believed will be a game changer. The company did a market survey amongst people from
various age groups to know the acceptability of the product. What step of the creativity process is the
company right now in? (1 Mark)
a. Idea germination
b. Preparation
c. Incubation
d. Illumination

Ans b. Preparation
 CBSE 2020-21 Sample Paper

Q1. Sudha started her small-scale business of making Pickles along with few of her neighbours using their
free time at home. They named their venture ‘Home Sweet Home’. They were able to supply the entire
district. One of the members suggested that they should expand and start selling to other states. When she
discussed the same to her husband, he suggested that they have to properly look into the environment
analysing the competitors. He suggested Sudha to (1 Mark)
A. formulate policies
B. Tap useful resources
C. Environment scanning
D. Image building

Ans C. Environment scanning

Q2. Anant and Anandi together took over their family business of furniture. They understood that the
present competitors were using online means to sell their products. They decided on a new idea of
providing furniture on a rental basis to offices and households and to also start making furniture using the
traditional method which caught the attention of the new generation. They opened stores in various cities
and started selling through online mode also. They both are using the service-related idea field.
Mention whether the idea field identified is true or false. (1 Mark)

Ans False

Q3. Vikrant was always interested in technology driven products. After finishing his engineering degree, he
started working on a new walking stick which will help blind people. The stick will be Bluetooth and wi-fi
enabled which will be connected through an app on the phone which will guide the blind persons about
the objects in front of their walking path. He has started testing the walking stick and found that the
stakeholders were satisfied and it had a great value to the customers. Vikrant is in ___________ stage of
innovation process. (1 Mark)

Ans Commercial Application

Q4. Mallika was selling vegetables in her cart along with her mother. They were able to earn a profit of
around Rs.200 every day. Even though the amount was not substantial it was sufficient for a decent living.
Mallika often noticed that nuclear families where both husband and wife go to work find it difficult to cook
as cleaning and cutting vegetables took a lot of time, so an entrepreneur she started gathering information
regularly and developed a new product line of selling cut vegetables in hygienic packaging. Mallika used
_____________ trend to spot this idea. (1 Mark)

Ans Think trends

Q5. Arvind planned to start a small fast-food joint in his area after finishing his degree in hospitality
management. His plan was to combine and use healthy ingredients like whole wheat flour to make the
burger buns. He knew that he had to start collecting information from different sources which will help him
to identify the right opportunity to start his business. From where will Arvind get the necessary
information? (1 Mark)
A. Magazines
B. Shows
C. Family Members
D. All of the above
Ans D. All of the above

Q6. Victor industries has been one of the leading companies in Mobile phone industry in India. The
company decided to launch a new Model AI 1 which will have inbuilt latest software to encourage hands
free use and enhance the customer experience through 3D photos. They are also looking into ideas to use
ecofriendly recyclable materials for the body of the phone which will cause less environmental damage.
Identify the two factors of PESTEL model from the above case study. (1 Mark)
A. Economic, Social
B. Ecological, Technological
C. Legal, Economic
D. Social, Political

Ans B. Ecological, technological

Q7. State any two factors while assessing the market. (2 Marks)

Ans 1. Demand: The demand assessment will be based on the size of market being targeted, it will also
involve a study of the target groups of consumers, their preferences, tastes and other related variables.
2. Supply and nature of competition: Complete analysis of quantities of the product made available in the
market by all the existing players should be looked into carefully. It should also take into account future
supplies from possible entrants in the field.
3. Cost and price of product: It is important to determine the cost of the product and its comparison with
available products in the market. Cost variable of competitors in terms of transportation delays, wastage,
storage etc., have to be studied to spot cost advantage. This will influence the delivery mechanism of the
identified product or service.
4. Project innovation and change: Market assessment will require a study of prevailing innovations and
changes being carried out by existing entrepreneurs. Technological advancements in the field have to be
analysed because they may change the quality and influence the cost and price ultimately. (Any 2 points)

Q8. Enlist any two uses of problem identification. (2 Marks)

Ans Uses of problem Identification:

1. It helps an entrepreneur to bring out new products in the market
2. Understand the problems and needs of the market
3. Helps the entrepreneur to be creative
4. Increase in employment generation
5. Increase in national income of the country (Any 2 points)

Q9. Why is creativity important and explain the creative process? (6 Marks)

Ans Creativity is important to entrepreneurs because it is the first stage in the process of innovation,
providing the stimulus for opportunity discovery and new venture creation.

The process of creativity involves five steps:

1. Idea germination: This is the seeding stage of a new idea. It is the stage where the entrepreneur
recognises that an opportunity exists. The idea germination takes place according to interest, curiosity of
the entrepreneur according to which opportunity is explored and exploited to its best potential. Creative
ideas germinate besides the interest, the need of a specific problem or area of study.
2. Preparation: On the basis of the idea, interest and curiosity the need is judged by the entrepreneur and
he starts looking for the answer to implement the idea. If the idea is to launch a new product or service
then market research is conducted. That happens because the seed of curiosity has taken the form of an
idea, the entrepreneurs foresee the future of the product.
3. Incubation: This is the subconscious assimilation of information. This is the transition period. The
entrepreneur starts thinking about the idea and implementation in his sub-conscious mind.
4. Illumination: In this period of illumination the idea re-surfaces in a realistic way and entrepreneur comes
out with a viable plan to give practical shape by collecting raw-material, arranging funds, policy making for
implementation of idea.
5. Verification: Also called the validation or testing stage. This is where the idea is verified to prove that it
has value. This is the most difficult phase of creativity as obstacles begin to appear. This is the developing
stage in which knowledge is developed into application.
 CBSE 2019-20 Compartment Paper

Q1. ___________ can be described as an economic idea which can be implemented to create a business
enterprise and earn profits. (1 Mark)

Q2. State whether the following statements are true or false: (1 Mark)
LKP Airlines wants to expand its operations. One of the important political factors it should consider is the
landing rights of airlines in foreign countries.

Q3. List any four uses of ‘problem identification.’ (2 Marks)

Q4. List any four sources of collection of information for environmental scanning. (2 Marks)

Q5. Define creativity. Explain the steps in the process of creativity. (3 Marks)

Q6. Describe the ways in which entrepreneurs spot trends. (4 Marks)

 CBSE 2019-20 Delhi Paper

Q1. “Welsa Moto Corp’s electric vehicles with zero tail pipe emission are emerging as a good alternative to
two major problems; (i) climatic change due to auto exhaust and (ii) increasing pollution leading to ill
health. This Act of ‘Welsa Moto Corp’s has taken care of _________________ and _________________
elements of macro environment. (1 Mark)

Ans Social and Ecological

Q2. Amit, an entrepreneur, is always in touch with the changes taking place in the environment. He
identifies opportunities and finds strategies to capitalize on these opportunities at the earliest. Sensing the
requirement of providing reasonably priced food at their own place within no time with multiple options,
he started the first online food network in India. Because of ________________ advantage, he was able to
capture more than 85% of the market share in no time. (1 Mark)

Ans First Mover

Q3. ________________ process of entrepreneurship involves the translation of a useful idea into an
application which has commercial value. (1 Mark)

Ans Innovation

Q4. Growing flowers and selling to floral decorators is an example of the following source of idea field: (1
Mark)
(a) Service sector ideas
(b) Trading related ideas
(c) Natural resources
(d) Market driven ideas

Ans (c) Natural resources

Q5. State any four ways in which creative ideas can be generated. (2 Marks)

Ans 1. Develop a new product or service.

2. Improve an existing product or service
3. Find a new process or resource for manufacturing a product.
4. Find new markets for existing products or services.
5. Find a new use of an existing product or service (ANY FOUR)

Q6. State any four sources which lead to the emergence of basic ideas. (2 Marks)

Ans Following are the various sources which lead to the emergence of basic ideas.
a) Problems: When a problem exists, an idea leads to a solution to resolve that problem; it emerges as a
business opportunity.
b) Change: A change in social, legal, technological aspects etc. leads to new opportunities to start a
business.
c) Inventions: New products or services lead to new business opportunities.
d) Competition: Competition often results in emergence of new and better ideas that result in new
business opportunities.
e) Innovation: Creating new things of value as well as new and creative processes that add value to the
existing products or services. (ANY FOUR)
Q7. With the help of any three points, explain why is it important for a business to understand the
environment in which it operates. (3 Marks)

Ans The importance of understanding the relevant environment of business are:

i) Identification of opportunities to get first mover advantage: By keeping in touch with the changes in the
external environment, an enterprise can identify opportunities and find strategies to capitalize on the
opportunities at the earliest.
ii) Formulation of strategies and policies: It helps in identifying threats and opportunities in the market.
These can serve as the basis of formulation of strategies to counter threats and capitalize on opportunities
in the market.
iii) Tapping useful resources: If a company has a thorough knowledge of the external environment, it can
tap raw materials, technology and even financial resources from the market at economical prices.
iv) Better performance: Proper understanding of the various elements of the external environment is
necessary to take timely action to deal with threats and avail opportunities to improve performance of the
firm.
v) Sensitization of entrepreneurs to cope up with rapid changes: A keen watch on the trends in the
environment would help sensitize the entrepreneur to changing technology, competition, government
policies and changing needs of the customers.
vi) Image building: If a company is sensitive to the external environment, it will come out with new
products and services to meet the requirements of the customers.
(ANY THREE)

Q8. Rohit is working on designing of a unique face mask which would not only filter the air inhaled but also
send alert messages on the registered mobile number if the user is in a zone of high pollution. This idea is
germinated because of the interest and curiosity of Rohit as he is always interested in finding out the
specific current problems and their solutions. Before launching his idea he also analysed the pros and cons
of the product. Now he has to complete two more steps of an important process.
Identify the process. Explain the steps to be completed by Rohit in the process identified. (3 Marks)

Ans Creativity
Step to be taken by Rohit :
1. Illumination: In this period the idea re-surfaces in a realistic way and entrepreneur comes out with viable
plan to give practical shape by collecting raw-material, arranging funds, policy–making for the
implementation of idea.
2. Verification: Also called the validation or testing stage. This is where the idea is verified to prove that it
has value.

Q9. There are various ways in which an entrepreneur can spot trends. Describe the four ways of identifying
the trends with the help of examples. (4 Marks)

Ans Ways in which an entrepreneur spots trends:- ( any other suitable example for each )
1. Read trends
They regularly read the leading publications and websites affecting their business.
2. Talk trends
Talking to people is an equally important trend-spotting tactic. They get involved in specific industry’s trade
association and attending events both online and offline.
3. Watch trends
There’s no substitute for getting out in the market place. They make it a point to regularly go where their
target customers hang out. If the customers are teenagers, that might be the local mall.
4. Think trends
As an entrepreneur begins gathering all these information regularly, they will start to develop a ‘trend-
spotter mind’.
Q10. Explain the steps for idea and opportunity assessment after the product identification has been done
by the entrepreneur. (6 Marks)

Ans After identification of product following are the steps to be followed by the entrepreneur for idea and
opportunity assessment: -
1. Application and use: Ideas should be examined for their real-life use and application. If it already exists
in the market, we will have to find out its present use, then we may think of modifying it for better use.
2. Level of operation: This is a crucial test for product/service identification. Depending on the use of the
product/service the entrepreneur will produce it in a cottage industry or a small scale–industry or a large–
scale industry.
3. Cost: What is per unit cost of the product at particular level of operation? Whether this cost is
comparable with that of other competitive products? These are some of the questions that have to be
answered. This will ultimately decide the sale price.
4. Competition: Any product or service will face market competition at some stage. So, market competition
should be assessed through a study of the trends in demand and supply.
5. Technical complexity: What type of technology is required to produce the product? Whether training
and application of such technology will be locally available or will it have to be supported from other
places? What would be the position of supply of plant and machinery for such a technology? These are
important issues that have to be resolved.
6. Annual turnover and profit margin: Ideas should also have to be examined on the basis of expected
annual turnover. This will also indicate the market share of the product or service.
 CBSE 2019-20 All India Paper

Q1. A prospective entrepreneur has to find an opportunity which would be suitable for him/her in terms of
________________ and _____________. (1 Mark)

Ans Customers to be served, Profits expected

Q2. A viable venture is born when knowledge, skills, __________ and __________ is strategically applied.
(1 Mark)

Ans Competency, Creativity

Q3. Business environment consists of three levels, i.e. SWOT analysis level, micro level and macro level. (1
Mark)
Ans False

Q4. Ravi created a portable incinerator to be installed in the houses. The dry waste generated at homes can
be converted by it into ash that can be used as manure for plants. He has installed five prototypes of this
incinerator in his society to test its working and to prove its value. Ravi is in the verification stage of his
product. (1 Mark)
Ans True

Q5. ‘Free home delivery of food’ is a trading related idea. (1 Mark)

Ans False

Q6. What is meant by environment scanning? Why does an entrepreneur need to scan the environment?
(2 Marks)

Ans Meaning: Careful monitoring of an organization's internal and external environment for detecting early
signs of opportunities and threats that may influence its current and future plans is called environment
scanning.
Need: The right information, combined with the right adaptations, can determine an organization's future
viability. If an entrepreneur is not aware of the environment surrounding his/her business, he/she is sure to
fail.

Q7. Understanding lifestyle changes and attitude towards work and leisure, Flizon India Ltd. started an
online shopping portal offering same day delivery to its customers without any extra charge, on orders
above Rs.500. The company also installed an online payment security system where there is end-to-end
encryption of the banking details of the customer. Identify and state the two environmental factors
discussed above. (2 Marks)

Ans Social Factor- Free home delivery, changes in lifestyle, attitude towards work and leisure.
Technological – Secured online banking transactions

Q8. There are various sources of idea fields like natural resources, existing products or services, creative
efforts, etc. The entrepreneurs who look at ways to make an existing product or service better, have a
number of reasons for this. Giving example, explain any two such reasons. (3 Marks)

Ans 1. Keep up with the competition: If you provide services or products in an industry that is constantly
changing, it's important to stay aware of the latest in industry trends so that one can continue to be
competitive.
2. Increase sales: The main reason people will change and improve their existing product line is to increase
their sales and ultimately, their revenue. By adding to the product line, one can take the company in a new
direction by increasing sales.
3. Working on existing products and services can generate a number of ideas to improve them or to
provide cheaper substitutes or to bring about a reduction in price.
(Any two points with suitable examples)

Q9. Explain ‘product identification’, ‘application and use’ and ‘level of operation’ as important steps in idea
and opportunity assessment. (3 Marks)

Ans 1. Product Identification – an idea should lead the entrepreneur to a definite product/service which he
can sell. He should also see whether this product is already available in the market or not. If it is, then,
identify the reason for introducing the same product.
2. Application and use- ideas should be examined for their real-life use and application. If it already exists
in the market, then find out its present use and think of modifying it for better use.
3. Level of operation- depending upon the use of the product/service the entrepreneur will produce it in a
cottage industry or a small-scale industry or a large-scale industry.
 CBSE 2019-20 Sample Paper

Q1. North west Airlines started their operations from India to various parts of the country in the year 2015.
The company had been successful in it’s operations as more people preferred to travel by air due to
change in the lifestyle and attitude towards work and leisure. It is _____________ factor as per PESTEL
model. (1 Mark)
Ans Social

Q2. _______________________ is the first stage in the process of innovation. (1 Mark)

Ans Creativity

Q3. Environment scanning is required to convert an idea into an opportunity. (1 Mark)

Ans False

Q4. Innovation is an indication that will help the entrepreneur to understand the market and produce
goods or provide services in sync with the market needs, demand and taste. (1 Mark)

Ans False

Q5. Exploring opportunities in the environment is a process involving various steps. Arrange the steps in
correct order. (1 Mark)
i) Evaluating the ideas received from different sources to find a creative solution
ii) Identifying a product or service through innovation
iii) Opportunity spotting by analysing the needs and problems that exist in the environment
iv) Setting up a project and nurturing it to success
a. i-ii-iii-iv
b. iii-i-ii-iv
c. ii-iii-iv-i
d. i-iv-iii-ii

Ans b. iii-i-ii-iv

Q6. Priya joined a Publication Company that publishes a monthly magazine “Lifestlye”. It covers articles
related to fitness, clothing, gadgets, cooking etc., Priya had joined the clothing division of the magazine.
Her divisional head explained her nature of work of the division. She also informed Priya that in addition to
visits to local mall she would have to attend ‘Power lunches’ on the first Monday of every month. Out of
the following identify the way of spotting trend, the divisional head is talking about? (1 Mark)
a. Talk trends
b. Read trends
c. Watch trends
d. Think trends

Ans c. Watch trends

Q7. Varun, a student of class XII, observed that a large number of students of the school were using mobile
phones. He also observed that many parents of such students were worried about the content being
viewed by their children on mobile phones and were not able to control them. Being a talented and an
intelligent student he decided to develop an app that may help the parents to watch and control children
regarding the content being viewed. From the following identify the “idea field” used by Varun to develop
the app. (1 Mark)
a. Creative efforts
b. Trading related ideas
c. Market driven idea
d. Natural resources

Ans a. Creative efforts

Q8. Rani finished her graduation from Bangalore University. Along with her friends she decided to travel
the European countries for 20 days. She faced a lot of problems before and during her visit. While applying
for visa, she found the process to be too tedious so she approached a travel agent who helped her but still
it turned out to be expensive. After that she visited various websites to book hotels and transportation. It
was a long process. After leaving India, she found that language in every European country was different
even though English was spoken widely. She could not find a single app which would cover everything from
obtaining a visa, places to stay, eat and visit in every city. This roadblock inspired her to come up with a
solution.
When she came back to India, she developed an app that can be downloaded on any phone. The app acts
as a virtual guide for every traveller who wants to visit European countries.
State the objectives of developing this app. (2 Marks)

Ans Objectives of problem identification:

1.It should clearly state the problem
2. Identify target group facing the problem
3. Find the market acceptability of the solution to the problem (Any two)

Q9. List the two things that an entrepreneur has to ensure before selecting an opportunity. (2 Marks)

Ans a. There is a good market for the product he is going to produce

b. The rate of return on the investment is attractive to be accepted by him.

Q10. List any two elements of a business opportunity. (2 Marks)

Ans a. Assured market scope

b. An attractive and acceptable rate of return on investment

Q11. Explain the various factors involved in sensing opportunities? (3 Marks)

Ans The most important factors involved in the process are:

a. Ability to perceive and preserve basic ideas:

Spotting of an idea often triggers the process of sensing an opportunity. The following are the various
sources which lead to the emergence of basic ideas.
a) Problems: When a problem exists and an idea leads to a solution to resolve that problem, it emerges as
a business opportunity.
b) Change: A change in social, legal, technological aspects etc. leads to new opportunities to start a
business.
c) Inventions: Invention of new products or services leads to new business opportunities.
d) Competition: Competition often results in emergence of new and better ideas that result in new
business opportunities.
e) Innovation: It includes creating new things of value as well as new and creative processes that add value
to the existing products or services. For example, computers to tablets
b. Ability to harness different sources of information:
Various sources like magazines, journals, books, seminars, trade shows, family members, customers,
friends etc help in getting information that helps in evolution of basic ideas. Bring together various sources
of information and knowledge, and analyze it to the best possible extent. The analysis helps in the
identification of the right opportunity to start a new business.

c. Vision and creativity:

Creativity in innovating a solution and vision. The entrepreneur should be able to creatively identify an idea
to generate a valuable solution to a problem. Once the solution is identified their vision to convert the
solution into business opportunity help them to move forward, overcoming all the obstacles. They
constantly-a) overcome the adversity b) are able to exercise control over the business c) are capable of
making significant difference.

Q12. Explain the various factors involved in assessing the market while selecting a product or service? (4
Marks)

Ans a. Demand: The demand assessment will be based on the size of market being targeted, i.e., local
markets, market at state level or national/international market. It will also involve a study of the target
groups of consumers, their preferences, tastes and other related variables.
b. Supply and nature of competition: While assessing market, supply position is also studied by
entrepreneurs. A complete picture of quantities of the product made available in the market by all the
existing players should be made available. It should take into account future supplies from possible
entrants in the field.
c. Cost and price of product: It is important to determine the cost of the product and its comparison with
available products in the market. Cost variable of competitors in terms of transportation delays, wastage,
storage etc., have to be studied to spot cost advantage. This will influence the delivery mechanism of the
identified product or service.
d. Project innovation and change: Market assessment will require a study of prevailing innovations and
changes being carried out by existing entrepreneurs. Technological advancements in the field have to be
analysed because they may change the quality and influence the cost and price ultimately.
 CBSE 2018-19 Compartment Paper

Q1. What is meant by ‘environment analysis’? (1 Mark)

Q2. What is meant by ‘innovation’? (1 Mark)

Q3. Explain ‘Service-sector-ideas’ as a source of ‘idea field’. (2 Marks)

Q4. Explain ‘Market-driven ideas’ as a source of ‘idea field’. (2 Marks)

Q5. Ramaya, a banana planter from Madurai, wanted to supplement his income. His friend, Shekhar, who is
a weaver suggested him to think of the scope of ancillarisation in banana plantation. The State Government
announced subsidies to those farmers and planters who minimise the waste production and promote
sustainable development. One day while Ramaya was going through the local daily newspaper, he read
about banana fiber extracting machine which can be easily operated by unskilled workers and gives
maximum output of fibers. He decided to buy the machine for extracting fibers from banana stem which is
generally thrown away after the fruits are reaped. This fiber has a ready market with weavers who are
making eco-friendly fabrics as required by the young generation.
Identify the way in which Ramaya understood the need of the market and worked on it. (2 Marks)

Q6. ‘‘By keeping in touch with the change in the external environment, an enterprise can identify
opportunities and find strategies to capitalize on the opportunities at the earliest and sensitize the
entrepreneur and help him to build image of his business.’’ Explain. (3 Marks)

Q7. Yash was not too keen to take up his family run business-making bamboo baskets. As the business was
not doing well, he did not want to take up his family business. He started searching for new market
opportunities. One day while having food in a restaurant, he overheard the owner talking about the
difficulty in disposing the plastic and thermocol crockery used in the restaurant. Being creative in his
approach, Yash started looking into various options of making bamboo plates which can be used in
restaurants. He discussed the idea with his father who advised him to go ahead as this idea will translate
into an application which has commercial value.
(a) Identify the process which involves the translation of a useful idea into an application which has
commercial value.
(b) State the elements involved in the process identified in (a) above. (3 Marks)

Q8. ‘Tastebuds Coffee’ Company has grown to an international brand. As the world’s biggest coffeehouse
company, it continues to lead the industry in sustainable business and innovation. Now, the company wants
to enter the Indian market. Quoting the lines from the following, evaluate favourable and unfavourable
conditions in the country’s political, economic, social, technological, legal and environmental setting that
the company should consider to enter the Indian market. The Indian economy has been subjected to a
series of positive economic reforms since 1991 which had created a better working environment for foreign
companies and has made it possible for foreign investors to operate in the country more easily. Taking into
consideration the polity in India as a whole, the bureaucracy complications and the regulatory FDI controls
and regulations, it is safer for it to enter India only via a joint venture or a strategic alliance with an Indian
company that can provide a buffer from possible political tension. Furthermore, it can face some
opposition from the existing competitors like CCD, Barista, etc. It has opportunity to increase its revenues
based on increasing demand for speciality coffee, which is due to a growing coffee culture and a growing
middle class around the world. Also, the company has the opportunity to widen its array of more healthful
products to attract health-conscious consumers to its cafés. The company also has the opportunity to
improve its supply chain efficiency based on new technologies used by coffee farmers. However, the rising
availability of home-use speciality coffee machines is a threat to the company because it increases the
availability of substitutes to its products. The company also has planned to offer most of its products in
recyclable packaging. However, increasing employment regulation, especially in developing countries,
threatens its access to the labour market. (4 Marks)
 CBSE 2018-19 Delhi Paper

Q1. Q1. What is meant by sensing entrepreneurial opportunities? (1 Mark)

Ans Sensing entrepreneurial opportunities is thus a process of converting an idea into an opportunity and
then into an enterprise.

Q2. What is meant by ‘strategic positioning’? (1 Mark)

Ans Strategic positioning means that knowledge, skills, competencies and creative thinking needed to
develop an idea are backed by factors critical for market success.

Q3. State the elements in innovation process. (2 Mark)

Ans a. Analytical Planning- Carefully identifying the product or service, features, design and resources
b. Resource Organisation- obtaining the required resources, materials, technology, human or capital
resources
c. Implementation- Applying the resources in order to accomplish and deliver the results
d. Commercial Application- Provision of value to customers, reward employees and satisfy the stakeholders

Q4. State the steps in the creative process after ‘Idea Germination’. (2 Marks)

Ans a. Preparation- On the basis of idea, interest and curiosity the entrepreneur starts looking for answers
b. Incubation- This is the subconscious assimilation of information
c. IIlumination- The period where the idea resurfaces in a realistic manner
d. Verification- this is the testing stage.

Q5. Ecobrick is a company manufacturing bricks using recycled plastics. They have collection centres in
various strategic locations all over the city and citizens are encouraged to sell their plastic products in these
centres. This will save the environment in the long run. Also, it will promote ideology of ‘swatch bharat’. It
will generate good revenue for the company as it sources its raw materials from the general public from
whom the used plastic products are a scrap. Identify and state any two macro environment factors affecting
the environment in the above case. (2 Marks)

Ans Ecological- concern over environmental factors

Economic- it includes interest rates, inflation, business cycles, unemployment, disposable income, energy,
availability and cost.

Q6. How can an entrepreneur use an existing product or service as an idea field? Explain with an example.
(3 Marks)

Ans Change or improvement can come about in many ways.

i. Change one’s own product or modify it to meet the current market requirements.
ii. Bring about changes in the product which the competitor is selling and gain the market share with a
better version of an already existing product.
It must be done skillfully, or else other problems can arise. Perhaps you sell a skincare line and would like to
change the ingredients around a little. Or maybe you run a math tutoring business and would like to
expand into other subjects, like science or commerce.
Example: (Any other suitable example to be considered)
Q7. State any three ways by which basic ideas can be perceived and preserved for commercial use. (3
Marks)

Ans a) Problems: When a problem exists, an idea leads to a solution to resolve that problem, it emerges as
a business opportunity.
b) Change: A change in social, legal, technological aspects etc. leads to new opportunities to start a
business.
c) Inventions: New products or services leads to new business opportunities.
d) Competition: Competition often results in emergence of new and better ideas that result in new
business opportunities.
e) Innovation: Creating new things of value as well as new and creative processes that add value to the
existing products or services. For example, computers to tablets.
(Any three)

Q8. ‘I love New York’ printed T-shirts are commonly available in markets. Anantnag-based Samabeg wanted
to see similar T-shirts that celebrate Kashmiri culture. For most of her life, 29-year-old Samabeg had lived
outside Kashmir. Raised in the Middle East, she went to the US for her education. But she wanted to return
to Kashmir to give back something to Kashmir society. For this she joined groups on the networking site
‘Kitter’ to see what people are buzzing about and also, about the latest trends. She also started talking to
customers and prospective customers on line. After doing on line surveys, she launched ‘Koshur-wear’ an
online brand that sells contemporary Kashmiri clothing and accessories.
(a) Identify and explain the trend that helped Samabeg to set up ‘Koshur-wear’.
(b) Also, explain any other way which may help Samabeg to spot the trend. (3 Marks)

Ans a. Talk trends: They get involved in specific industry’s trade association and attending events both
online and offline. They also take advantage of social networking tools like social network websites and
forums. They even start or join groups on the networks and see what people are buzzing about and about
the latest trends.
It's also important to talk to customers and prospective customers, both online and offline. They use social
media or online surveys to get input on what customers are thinking, buying, craving and doing. They also
use social network websites and forums to identify key influencers and trendsetters in their target markets.
(b) 1. Watch Trend: The entrepreneur spends some time simply watching and observing. Trade shows are a
great place to get trend ideas, too
even if they are not looking to buy product, they attend many shows simply to see what’s hot.
2. Read trends: They regularly read the leading publications and websites affecting their business. This
could include industry publications, trade association sites, major newspapers, key business magazines,
thought leaders and influential bloggers.
3. Think trends: As an entrepreneur begins gathering all these information regularly, they will start to
develop a “trend-spotter mind.” As they absorb and mull about what they’ve read, heard and observed,
they’ll start to make connections and observations that will lead to business-boosting insights.

Q9. Suprabh was trained under ‘Skill – India – Programme’ and was carefully monitoring the environment
for detecting early signs of opportunities. Under the ‘Skill – India – Programme’, he was sensitized about
different uses of waste materials. He grabbed this opportunity and decided to use old newspapers and
notebooks to prepare file covers for students with an art called ‘papermache’. He formulated plan of action
to capitalize on the opportunities in the market. He decided to procure the raw materials from scrap
dealers based in each locality to create a recyclable resource generation. This way he was not only able to
contribute to the environment but was also able to improve the profits of his business.
Quoting the lines from the above para, identify and explain the benefits Suprabh had by understanding the
environment. (4 Marks)
Ans i) ‘He grabbed this opportunity and decided to use old newspapers and notebooks to prepare file
covers for students with an art called ‘papermache’.’
Identification of opportunities to get first mover advantage: By keeping in touch with the changes in the
external environment, an enterprise can identify opportunities and find strategies to capitalise on the
opportunities at the earliest.
ii) Tapping useful resources: If the company has a thorough knowledge of the external environment, it can
tap raw materials, technology and even financial resources from the market at economical prices, at the
right time.
iii) Better performance: Proper understanding of the various elements of the external environment is
necessary to take timely action to deal with threats and avail opportunities for the purpose of improvement
in the performance of the firm.
iv) Image building: If a company is sensitive to the external environment, it will come out with new
products and services to meet the requirements of the customers. This would build the image or reputation
of the firm in the eyes of the general public. For example, call–radio taxis with additional features like GPS
systems, online booking etc.
 CBSE 2018-19 All India Paper

Q1. What is meant by a ‘business opportunity’? (1 Mark)

Ans It is an economic idea which can be implemented to create a business enterprise and earn profit.

Q2. What is meant by ‘idea fields? (1 Mark)

Ans Idea Fields can be described as 'Convenient frames of reference for streamlining the process of
generation of ideas’.

Q3. Apart from verbal information from the customers, wholesalers, retailers, distributors and consultants,
state any other four sources of collecting information for scanning the environment. (2 Marks)

Ans a) Records of companies

b) Government publications
c) Publications by various financial institutions
d) Formal studies conducted by strategic planners
(In case the examinee has mentioned any other correct source, he/she should be awarded full marks)

Q4. State the two basic qualities of a successful entrepreneur. (2 Marks)

Ans a) Identification of business opportunity in the environment

b) Initiating steps to produce and sell goods and services to make the best use of that opportunity.
(In case the examinee has mentioned any other suitable quality, he/she should be awarded full marks)

Q5. Yash was not too keen to take up his family run business of making bamboo baskets. But due to the bad
condition of the family business he had no option except to take up this business. He started thinking about
the new ways of using bamboo. One day while having lunch in a restaurant he overheard the owner talking
about the difficulty in disposing the plastic and thermacol crockery that was being used in the restaurant.
This provided him the stimulus for a new venture creation. Yash started looking into various options of
making bamboo plates which could be used in the restaurants. He discussed the idea with his father who
advised Yash that ideas should lead to commercially viable forms in order to survive and grow.
Identify and explain the concept discussed in the above situation. (2 Marks)

Ans Creativity
It is the first stage in the process of innovation, providing the stimulus for opportunity discovery and new
venture creation.

Q6. Explain the process of transformation of an idea into a viable opportunity with the help of a diagram.
(3 Marks)

Ans While the initial spotting of ideas (i.e., basic idea) is of a random nature, the development of ideas
after scanning the environment (i.e., post scanning) idea is a more
purposeful activity. All basic ideas have to undergo a vigorous process of
examination, evaluation, analysis and synthesis to identify viable
opportunities. This process of a basic idea becoming an opportunity is
shown in the diagram below:
Q7. Explain the first three steps in the process of idea and opportunity assessment. (3 Marks)

Ans a) Product identification: See whether the product is already available in the market or not. If so, then
identify the reason for introducing the same product or service in the market.
b) Application and use: Ideas should be examined for their real-life use and application. If already existing
in the market, find out its present use, and modify it for better use.
c) Level of operation: Depending on the use of the product/service the entrepreneur will produce it in a
cottage industry or a small-scale industry or a large-scale industry.

Q8. What is meant by ‘Analysis of Environment’? State any four sources of collection of information for
environmental scanning. (3 Marks)

Ans Environment analysis is the process of monitoring the economic and noneconomic environment, to
determine the opportunities and threats to an organisation.
Several sources of information include: (Any four)
a) Verbal information from customers, wholesalers, retailers, distributors, consultants, etc.
b) Records of companies
c) Government publications
d) Publications by various financial institutions
e) Formal studies conducted by strategic planners.

Q9. Dhanwantri Ayurveda Ltd. (DAL) are the manufactures of soaps, detergents, dental care products,
cosmetics, grocery products and even medicines based on Ayurveda. It has grown since its inception. The
reasons for the growth and popularity of DAL can be attributed to the fact that it started its operations at a
time when the Government in the country is moving towards making the country self-reliant. DAL is
following government initiatives like ‘Make in India’ campaign. Government is promoting Ayurveda through
the “Ayush Ministry” that promotes Yoga, Ayurveda and other traditional and complementary medicines.
This gives DAL a huge boost as it itself claims to be an Ayuredic company. DAL’s input cost increases or
decreases based on the taxation policies of the government. Implementation of Goods and Service Tax
(GST) has benefited DAL as the genre of DAL is not taxable. With inflation rate increasing continuously,
people are looking for cheaper and effective substitutes which are provided by the extensive range of
products provided by DAL. The people of India are becoming more health conscious and want to consume
organic products. The company focuses only on retailing in India through its own retail chain stores and
also through online mode through its E-commerce website AyurPro. The detergent products of the
company are non-polluting. The packing material used for the products is also bio degradable. DAL has a
separate department to prosecute and get penalized those who misrepresent its brand and its name.
Quoting lines from the paragraph, analyse the success of Dhanwantri Ayurveda Ltd. (DAL) on the basis of
any four points of the PESTEL Model. (4 Marks)

Ans On the basis of PESTEL model (Any four)

Political- DAL’s input cost increases or decreases based on the taxation policies of the government.
Implementation of Goods and Service Tax (GST) has benefited DAL as the genre of DAL is not taxable
Economic- With inflation rate increasing continuously, people are looking for cheaper and effective
substitutes which are provided by the extensive range of products provided by DAL.
Social- The people of India are becoming more health conscious and want to consume organic products.
Technological- Through online mode through its E-commerce website AyurPro.
Ecological- detergent products of the company are non-polluting. The packing material used for the
products is also bio degradable.
Legal- DAL has a separate department to prosecute and get penalized those who misrepresent its brand
and its name.
 CBSE 2018-19 Sample Paper

Q1. What is idea germination? (1 Mark)

Ans This is the seeding stage of a new idea. It is the stage where the entrepreneur recognizes that an
opportunity exists which can be explored and exploited to its best potential.

Q2. Enlist the elements of Innovation process. (2 Marks)

Ans a. Analytical planning: Carefully identifying the product or service features, design as well as the
resources that will be needed.
b. Resource organization: Obtaining the required resources, materials, technology, human or capital
resources.
c. Implementation: Applying the resources in order to accomplish the plans and delivering results.
d. Commercial application: The provision of value to customers, reward employees, and satisfy the stake
holders.

Q3. Amish has the habit of reading newspaper on a daily basis. The latest headlines caught his attention.
The headlines read as follows’ “Government plans to offer subsidy to manufacturers of solar panels”. He
had also heard from his friend that individual house owners are preferring to install solar panels to save
electricity. He started to make connections that led him to a business idea of establishing a small scale
industry manufacturing solar panels.
Identify and explain this way of identification by Amish which has helped him to understand the market
and produce goods accordingly. (2 Marks)

Ans Think trends- An entrepreneur begins gathering information regularly through reading, hearing and
observing. This helps them to eventually lead to business boosting insights.

Q4. Dristi ltd. decided to manufacture mobile phones with a new feature. It will have an inbuilt button
which when pressed will extend into a selfie stick enabling the customers to click selfies easily without the
need to carry a separate selfie stick. Identify two PESTEL factors which enabled Dristi Ltd., to bring out this
new feature. (2 Marks)

Ans Technological and Social

Q5. “All ideas need not necessarily become sound business opportunities”. In reference to this statement
explain the first three steps in idea and opportunity assessment. (3 Marks)

Ans 1. Product identification: An idea should lead the entrepreneur to a definite product/service which he
can sell. So, the first step is to obtain a concept of the product or service suggested by one idea. We should
also see whether this product is already available in the market or not. If it is, then we should identify the
reason for introducing the same product or service in the market. For example, innovating a new pen drive
especially for teachers which will have a built-in antivirus and which can be worn like a watch so it
minimises the problem of losing the pen drive.
2. Application and use: Ideas should be examined for their real-life use and application. If it already exists
in the market, we will have to find out its present use, then we may think of modifying it for better use. In
the above-mentioned example, we can clearly see that even though there are many companies
manufacturing pen drives, the latest will be in consonance with the upcoming trends.
3. Level of operation: This is a crucial test for product/service identification. Depending on the use of the
product/service the entrepreneur will produce it in a cottage industry or a small scale– industry or a large–
scale industry.
Q6. Shobha is a small-scale entrepreneur manufacturing chocolates in the name ‘Yummilicious’. She had
started this venture in the year 2012. She attended various start-up meeting where several Angel Investors
and Venture Capitalists shared their success story and mentored the new budding entrepreneurs.
In one of these sessions, she heard a mentor say that every entrepreneur should constantly and
consistently aim to improve the products and services already existing in the market.
Taking this cue, Shobha decided to introduce wafers, lollipop and hard candy under the same brand name.
Explain the benefits as to why Shobha is doing so? (3 Marks)

Ans She is bringing changes in the existing products. The benefits of doing so are:
a. Keeping up with the competition: The products or services in an industry are continuously changing and
it is important to stay aware of the latest in industry trends so that we can keep up to the competition.
b. Increase sales: the main reason people will improve or add to the product line is to take the company in
a different direction by increasing sales.

Q7. Harish, after finishing his degree wanted to start his own business. He was confused as to the kind of
business he should start. He attended a start-up session. One of the speakers stated that ‘Creativity can be
used to spot and harness opportunities, as well as be applied to develop new products and services.’ State
any three ways in which creative ideas can be generated. (3 Marks)

Ans There are basically five ways in which creative ideas can be generated:
1. Develop a new product or service.
2. Improve an existing product or service
3. Find a new process or resource for manufacturing a product.
4. Find new markets for existing products or services.
5. Find a new use for an existing product or service.

Q8. Entrepreneurship does not emerge and grow spontaneously. Rather, it is dependent upon several
economic, social, political, legal and other factors. An entrepreneur has to carefully monitor the
organization's internal and external environment for detecting early signs of opportunities and threats that
may influence its current and future plans. Identifying the concept, justify its importance for an
entrepreneur. (4 Marks)

Ans Concept- Environment Scanning

Importance- In a rapidly changing environment, one rule of thumb applies: If you don't adapt, you don't
endure. This is the core idea behind environmental scanning. It means that organizations should gather
information on changing conditions and incorporate those observations into a process which will lead to
success of the organisation.
The right information, combined with the right adaptations, can determine an organization's future
viability.
If an entrepreneur is not aware of the environment surrounding his/her business, he/she is sure to fail.

Q9. An entrepreneur identifies problems as roadblocks. They understand that they need to bring creative
solutions to it. For this he needs to completely understand the problem, identify the target group and find
an acceptable solution. Justify as to how identifying a problem will help an entrepreneur. (4 Marks)

Ans Uses of problem Identification:

1. It helps an entrepreneur to bring out new products in the market
2. Understand the problems and needs of the market
3. Helps the entrepreneur to be creative
4. Increase in employment generation
5. Increase in national income of the country (Any four)
 CBSE 2017-18 All India Paper

Q1. Give the meaning of an entrepreneur? (1 Mark)

Ans Entrepreneur is anyone who always searches for an opportunity. (Any other suitable definition)

Q2. ‘Safe Wheelers’ is an upcoming cab service. The promoters knew that they are entering a highly
competitive market. They gathered information on existing cab services and changing customer
preferences and incorporated those observations into their operations. In order to reach the customers
promptly, they developed an app to book, track and trace the cab 24*7. To create an environment of trust
all drivers were divided into two shifts, 6am – 6pm for female drivers and 6pm-6am for male drivers. GPS
systems were installed in order to monitor their movements. The fare payment was either by an e-wallet or
through the ‘Safe Wheelers’ Smart Card. As soon as the services were launched, they were a grand success.
Identify and explain the concept that helped the company to succeed. (2 Marks)

Ans Environment Scanning: Careful monitoring of an organization's internal and external environment for
detecting early signs of opportunities and threats that may influence its current and future plans.

Q3. Give any two points of distinction between ‘Basic Idea’ and ‘Post Scanning Idea’. (2 Marks)
Ans
Basic Idea Post Scanning Idea
While the initial spotting of ideas (i.e., basic idea) is The development of ideas after scanning the
of a random nature. environment (i.e., post scanning) idea is a more
purposeful activity.
Basic Idea is an experiential process. Post scanning idea is a strategic process.
Has to undergo the vigorous process Also undergone the process

Q4. While assessing the market, an entrepreneur has to prepare details on four factors one of them being
‘project innovation and change’. Explain briefly the other three. (3 Marks)

Ans Selection of a product or service will depend upon many factors. While assessing the market, an
entrepreneur has to prepare details on the following lines:
1. Demand: The demand assessment will be based on the size of market being targeted, i.e., local markets,
market at state level or
national/international market. It will also involve a study of the target groups of consumers, their
preferences, tastes and other related variables.
2. Supply and nature of competition: While assessing market, supply position is also studied by
entrepreneurs. By supply position what is meant is the complete picture of quantities of the product made
available in the market by all the existing players. It should take into account future supplies from possible
entrants in the field.
3. Cost and price of product: It is important to determine the cost of the product and its comparison with
available products in the market. Cost variable of competitors in terms of transportation delays, wastage,
storage etc., have to be studied to spot cost advantage. This will influence the delivery mechanism of the
identified product or service.

Q5. Bhoomika started a pottery unit employing differently abled people to make and sell sculptors made of
clay. She also made sure that the material she used is easily decomposable. During the months of
September and October she increased the scale of production as the festival of Diwali was round the
corner. Identify the component of business environment at a macro level that is reflected in the above
situation. Also identify any two values communicated by Bhoomika by her working. (3 Marks)
Ans Ecological Environment.
Values:
i. Social Responsibility
ii. Concern for the society
iii. Respecting differences
(Any two or other suitable value relating to the question)

Q6. Idea germination is the seeding stage of a new idea in the creative process. Explain the next four steps
in the process. (4 Marks)

Ans Preparation: On the basis of the idea, interest and curiosity the need is adjudged by the entrepreneur
and he starts looking for the answer to implement the idea. If the idea is to launch a new product or service
then market research is conducted.
Incubation: This is the subconscious assimilation of information. This is the transition period.
Illumination: In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes out
with viable plan to give
practical shape by collecting raw-material, arranging funds, policy–making for the implementation of idea.
Verification: Also called the validation or testing stage. This is where the idea is verified to prove that it has
value. This is the most difficult phase of creativity as obstacles begin to appear. This is the developing stage
in which knowledge is developed into application.
(Steps to be in sequence)

Q7. Dr. Bhim is a senior cardiologist and is concerned about the depleting health index. He researched and
found that proper eating habits can improve the quality of life. He initiated ‘MediBytes’, a unique canteen,
where the food is provided as per one’s health needs. The food served at ‘MediBytes’ has no fast food and
no aerated drinks. It provides zero oil food with all the basic nutrients required for the body. Initially these
canteens were started in Hospitals but since people are becoming health conscious ‘MediBytes’ is planning
to open their branches in other locations also.
a. Identify and explain the idea field that was explored by Dr. Bhim?
b. State any two idea fields with examples other than the one identified in (a) above. (6 Marks)

Ans (a) Service sector ideas: Entrepreneurial opportunities are not only restricted to the manufacturer.
Service sector is the most growing field these days, the world over, thanks to emerging knowledge societies
and advancements in Information and Technology. So, new opportunities can be identified by
understanding the linkages to different business activities.
OR
Market driven or demand driven ideas: Market research yields valuable data about trends of supply,
demand and consumer preferences. Market research is a key factor to maintain competitiveness over
competitors.
OR
Creative efforts
Apart from applying creativity to spot and harness opportunities, it can also be applied to develop new
products and services. There are basically five ways in which creative ideas can be generated:
1. Develop a new product or service.
2. Improve an existing product or service
3. Find a new process or resource for manufacturing a product.
4. Find new markets for existing products or services.
5. Find a new use of an existing product or service.
A very useful concept to bear in mind is that, most often creative products and services are born as results
of problem solving.
The child could have written any one of the above options and should not have explained the same option
in (b) part.
b) i.) Natural resources: Ideas can be generated based on natural resources. A product or service may be
desired from forest resources, agriculture, horticulture etc.,
ii.) Existing products or services: A great business idea combines skills with imagination and market
demand.
iii.) Trading related ideas: Trading these days is not limited to ordinary grocer or distributor outlets. With
increasing consumerism, the scope and nature of trade has enlarged; local trade, import and export, e-
commerce are all making trading a very wide area of enterprise.
(Any two with proper examples)
 CBSE 2017-18 Sample Paper

Q1. Naveen owns a 10-room building near Indira Gandhi International Airport. He wants to start a guest
house there because he knows that many visitors require low-cost accommodation near the airport. State
two things that he has to ensure before opting for this opportunity. (1 Mark)

Ans 1. To ensure that there is a good market for the service

2. The rate of return on the investment is attractive

Q2. Ritu has completed her B.Tech in textile designing. She wants to start a readymade garments
manufacturing unit. She wants to manufacture trendy garments for children below the age of one year.
She approached a popular trend spotter to help her with the same. The trend spotter demanded Rs.
2,00,000 from Ritu to help her. Looking at the high fee demanded, she decided to do the trendspotting by
herself. She decided to identify the trend by talking to the parents of the newly born.
Explain the method that Ritu adopted to spot the trend. (2 Marks)

Ans Talk Trends: talking to people is equally important trend spotting activity which helps the entrepreneur
to get inputs on the needs of the customer. This can be done both online and offline.

Q3. The first step in the creative process is ‘Idea germination’. Explain the next step that follows. (2 Marks)

Ans Preparation: on the basis of the idea generated the entrepreneur starts looking for the answers to
implement the idea. If the idea is to launch a new product or service then market research is conducted.

Q4. Explain creative efforts as an idea field and also list the ways in which these ideas can be generated. (3
Marks)

Ans Creativity is an important and key component of the talents and abilities
needed for an entrepreneur for spotting and to harness opportunities. It can also be applied to develop
new products and services. There are basically five ways in which creative ideas can be generated:
1. Develop a new product or service.
2. Improve an existing product or service
3. Find a new process or resource for manufacturing a product.
4. Find new markets for existing products or services.
5. Find a new use of an existing product or service.

Q5. Some important factors are involved in the process of sensing entrepreneurial opportunity. State these
factors. (3 Marks)

Ans To sense an entrepreneurial opportunity, an entrepreneur employs his/her sharpened skills of

observation, analysis and synthesis to identify an opening.
The most important factors involved in the process are:
1. Ability to perceive and preserve basic ideas which could be used commercially
2. Ability to harness different sources of information and analyse it to the best possible extent
3. Vision and creativity helps them to convert solution into business opportunity and helps them to move
forward overcoming all the obstacles.
Q6. Kiano Mobile Solutions (KMS) has been a leader in the mobile handset industry for years. After
technological advancement, many players entered the market and started to take up the sales share. KMS
failed to understand the changing trends in the mobile phone and lost its market share majorly whereas
Hanhung Mobitech could understand the sensitivity to the environment factors which is crucial for an
entrepreneur. How has the understanding of environment helped Hanhung Mobitech? Explain. (6 Marks)

Ans The benefits of understanding the relevant environment of business are:

(i) Identification of opportunities to get first mover advantage: By keeping in touch with the changes in
the external environment, an enterprise can identify opportunities and find strategies to capitalise on the
opportunities at the earliest.
(ii) Formulation of strategies and policies: It helps in identifying threats and opportunities in the market.
These can serve as the basis of formulation of strategies to counter threats and capitalise on opportunities
in the market.
(iii) Tapping useful resources: If the company has a thorough knowledge of the external environment, it
can tap raw materials, technology and even financial resources from the market at economical prices, at
the right time.
(iv) Better performance: Proper understanding of the various elements of the external environment is
necessary to take timely action to deal with threats and avail opportunities for the purpose of
improvement in the performance of the firm.
(v) Sensitisation of entrepreneurs to cope up with rapid changes: A keen watch on the trends in the
environment would help sensitise the entrepreneur to changing technology, competition, government
policies and changing needs of the customers.
(vi) Image building: If a company is sensitive to the external environment, it will come out with new
products and services to meet the requirements of the customers. This would build the image or
reputation of the firm in the eyes of the general public.
 CBSE 2016-17 Compartment Paper

Q1. Naveen belongs to a farmer family. One day he was viewing ‘Kirshi Darshan’ programme of ‘Door
darshan’ on his television. The heading of the programme was on ‘How to grow honey-bees and produce
honey’? In the same programme the methods of marketing honey through marketing cooperative societies
were also being discussed. Naveen decided to grow honey-bees and market the honey produced. Identify
the idea field. which helped Naveen in generating the idea of growing honeybees and marketing the honey.
(1 Mark)

Q2. What is meant by ‘Environment Scanning’? (1 Mark)

Q3. The first three steps in the process of creativity are: idea germination, preparation and incubation. List
the remaining two steps in the order in which they are followed. (1 Mark)

Q4. One of the keys to business success is to anticipate what the market will want or need before the
entrepreneurs are aware of it themselves. Name and give the meaning of the concept with the help of
which they can see into the future. (2 Marks)

Q5. Suraj and Chandni are a young couple having a three years old daughter Roshni. Suraj is employed with
a multinational company and is posted in Spain. Chandni is also working as an executive with an IT firm in
Gurugram and is staying with her in-laws in a locality of South Delhi. She wants to admit her daughter in a
reputed day boarding school, but is unable to visit the schools and identify one where she could admit
Roshni. She discussed the problem with Suraj. Suraj identified the problem and advised Chandni to hire a
computer operator who could collect data related to admission in nursery class visiting the websites of
different schools located in Delhi and NCR. He also advised Chandni to launch her own website
www.nurseryadmission.com and upload the data so collected on it so that the same could be used by other
parents like them for admission of their wards. Chandni followed the advise of Suraj and appointed a
computer operator. She provided all facilities to him in the basement of her home. Large number of parents
visited the website started by Chandni on an online payment of ` 100 per visit.
(a) Identify the entrepreneurship concept discussed in the above para.
(b) State how this concept is helped Chandni.
(c) State any one value that Suraj and Chandni tried to emulate. (3 Marks)
 CBSE 2016-17 Delhi Paper

Q1. Kumar belongs to a farmer’s family. One day a team of officials from the local block development office
visited his village for discussing additional opportunities related to agriculture. The team discussed with the
villagers how to develop fishery. The team explained about the technique of construction of ponds and the
modern technology of growing fishes. The team also informed that the ‘State agriculture department’ will
provide loan at an interest rate of 2½ % per annum to the farmers who will engage themselves in the
occupation and will also help the farmers in the marketing of fishes. Kumar, decided to engage himself in
the fishery occupation. Identify the ‘idea field’ that helped Kumar to engage himself in fishery occupation.
(1 Mark)

Ans Natural resources

Q2. What is meant by a ‘Business Opportunity’? (1 Mark)

Ans An economic idea which can be implemented to create a business enterprise and earn profit.

Q3. It is a process which involves the translation of a useful idea into an application which has commercial
value. It takes persistent effort to work out analytically the details of enterprise or service, to develop
marketing strategies, to organize finances and strategize operations. Identify the process. (1 Mark)

Ans Innovation

Q4. Gunjan has just passed her senior secondary examination from a CBSE affiliated school. She wanted to
start her own business but was unable to decide about the nature of the business. One day during the
morning walk her grandfather fell down in the park and was injured. She observed that her grandfather
often forgets to take his medicines. She thought that the same problem may be faced by other old people.
She thought to develop an instrument for old people that could be fitted with an electronic device
connected to the mobile phones of the members of their family which could indicate the location of the old
people when they go outside their homes. This device could be kept in their pockets. She also thought to fit
a timer in the instrument that could remind the old persons about the time of taking their medicines.
Identify and state the meaning of the concept described in the above para that helped Gunjan in
structuring her idea for solving the problem. (2 Marks)

Ans Product identification- an entrepreneurial idea leading to a definite product after opportunity spotting
and scanning of the environment is called product identification.

Q5. Shiva and Gauri is a young couple having a four year old son Rohan. Shiva is employed in a
multinational company and is posted in Germany. Gauri has her own computer training institute and is
staying with her son and in-laws in a locality of Bangaluru. Gauri wants to admit her son in a reputed school
of Bangaluru but is unable to visit schools and identify the one, where she could admit Rohan. She
discussed the matter with Shiva. Shiva identified the problem and advised Gauri to collect on-line data
related to admission, infrastructure facilities and related information about schools of Bangaluru, so that a
suitable school for Rohan could be identified. He also advised Gauri to develop a website
www.nurseryadmission.com and upload the information of various schools on the website. This website
could be visited by the parents who wish to admit their children in the nursery class in schools of their
choice. Shiva also told Gauri to employ a computer operator for this purpose who could update the website
regularly. Large number of parents visited the website started by Gauri on payment of an online fee of 100.
(a) Identify the entrepreneurship concept discussed in the above para.
(b) State the objectives of the concept identified in (a) above.
(c) Identify any two values that Shiva and Gauri tried to emulate. (3 Marks)
Ans (a) Problem Identification
(b) Objectives – It should clearly state the problem Identify target group facing the problem
Find the market acceptability of the solution to the problem (Any two)
(c) Values – Employment generation; Fulfilling the social responsibility (or any other suitable value)
 CBSE 2016-17 All India Paper

Q1. Vipin Taneja has completed his Masters degree in Computer Science from IIT, Delhi. He thought of an
attractive economic idea which could be implemented to create a business, earn profits and ensure further
growth. The idea was to link the different restaurants with the Indian railway network so that while
travelling, the railway passengers can order food as per their liking. List any two elements of the concept
discussed above. (1 Mark)

Ans A business opportunity has five elements which are as follows:

i. Assured market scope
ii. An attractive and acceptable rate of return on investment
iii. Practicability of the idea
iv. Competence of the entrepreneur to encash it
v. Potential of future growth (Any two)

Q2. Air India is planning to expand its flights to Pakistan and Afghanistan over the next five years.
Enumerate any two political factors that it should consider as per the ‘PESTEL Model’ for the same.
(1 Mark)

Ans Taxation policy, government stability and foreign trade regulations, Political unrest, terrorism, landing
rights in foreign countries.
(Any two) (Any other relevant point written by the student should be given weightage)

Q3. “It is a process which involves the translation of a useful idea into an application which has commercial
value. It takes persistent effort to work out analytically the details of the enterprise or service, to develop
marketing strategies, to organise finances and strategize operations”. Identify the process. (1 Mark)

Ans Innovation

Q4. Nayan has just passed his Senior Secondary Examination from CBSE affiliated school. He wanted to start
his own business but was undecided about the nature of the business to be started. One day, during the
morning walk, his grandfather fell down in the park and was injured. He observed that his grandfather
often forgot to take his medicines. He thought that the same problem may be faced by other old
people. He thought to develop a walking stick for old people that could be fitted with some electric devices
connected to the mobile phones of the members of their families which could indicate the location of the
old people when they go outside their homes. He also thought to fit a timer in the stick that could remind
them about the time of taking their medicines. Identify and state the meaning of the concept described in
the above para that helped Nayan in structuring his idea of solving the problem. (2 Marks)

Ans Product identification- an entrepreneurial idea leading to a definite product after opportunity spotting
and scanning of the environment is called product identification.

Q5. Describe briefly the ways in which the entrepreneur spots trends. (4 Marks)

Ans Ways in which an entrepreneur spots trends

1. Read trends: They regularly read the leading publications and websites affecting their business. This
could include industry publications, trade association sites, major newspapers, key business magazines,
thought leaders and influential bloggers.
2. Talk trends: Talking to people is an equally important trend-spotting tactic. They get involved in specific
industry’s trade association and attending events both online and offline. They also take advantage of social
networking tools like social network websites and forums, join groups on the networks and see what
people are buzzing about and about the latest trends. They use social media or online surveys to get input
on what customers are thinking, buying, craving and doing.
3. Watch trends: There’s no substitute for getting out in the marketplace. They make it a point to regularly
go where their target customers hang out. The entrepreneur spends some time simply watching and
observing. Trade shows are a great place to get trend ideas, too even if they are not looking to buy product,
they attend many shows simply to see what’s hot.
4. Think trends: As an entrepreneur begins gathering all these information regularly, they will start to
develop a “trend-spotter mind.” As they absorb and mull about what they’ve read, heard and observed,
they’ll start to make connections and observations that will lead to business-boosting insights.
 CBSE 2016-17 Sample Paper

Q1. Rishabh lives in Vijay Nagar, a residential colony near Delhi University (DU). Being close to DU this area
is a hub for students who come from outside Delhi to study here as they find good accommodation with
Tiffin service readily available. Rishabh has a vacant residential building there. He found it to be an
attractive economic idea to start a Paying Guest House. He knows that he has a good market because of
the location of his building. State the other requirement he has to ensure before opting for this
opportunity. (1 Mark)

Ans The rate of return on the investment has to be attractive to be accepted by him.

Q2. Ragini, a career-oriented mother, hardly got time to cook for the family. She decided to hire a cook but
was not able to find one who could cook according to the taste of the family. Her sister Abha sensed that
this problem is not only faced by her sister but also by many working women. She launched a website
namely ‘Dial for food’ where housewives who had culinary ability and were interested to cook could drop
in their contact details and households where specific cuisine was required could leave in their
requirements so that through the website home cooked food could be delivered. The website mainly
helped in identifying the requirement and fulfilled it through providing delivery service. Identify any two
uses of problem identification to Abha. (2 Marks)

Ans 1. Bring out new products in the market

2. Increase employment generation
3. Understand the problems and needs of the market. (Any two)

Q3. Explain the first two elements in the innovation process? (2 Marks)

Ans 1. Analytical planning: carefully identifying the product or service features, design as well as the
resources that will be needed.
2. Resource organization: obtaining the required resources, materials, technology, human or capital
resources.

Q4. Explain how the following factors affect idea and opportunity assessment. (3 Marks)
a. Application and use
b. Level of operation
c. Competition

Ans 1. Application and use: Ideas should be examined for their real-life use and application. If it already
exists in the market, we will have to find out its present use, and then we may think of modifying it for
better use. In the above-mentioned example, we can clearly see that even though there are many
companies manufacturing pen drives, the latest will be in consonance with the upcoming trends.
2. Level of operation: This is a crucial test for product/service identification. Depending on the use of the
product/service the entrepreneur will produce it in a cottage industry or a small scale–industry or a large–
scale industry.
3. Competition: Any product or service will face market competition at some stage. So market competition
should be assessed through a study of the trends in demand and supply.

Q5. Sensitivity to environmental factors is crucial for an entrepreneur. With an appropriate example
explain the relevance of the statement. (3 Marks)
Ans For example, Sony failing to understand the changing trends in mobile phones and therefore losing its
market share.
The benefits of understanding the relevant environment of business are:
i) Identification of opportunities to get first mover advantage: By keeping in touch with the changes in the
external environment, an enterprise can identify opportunities and find strategies to capitalise on the
opportunities at the earliest. For example, Volvo, the Swedish brand has 74% share in the luxury bus
segment as it had entered India earlier.
ii) Formulation of strategies and policies: It helps in identifying threats and opportunities in the market.
These can serve as the basis of formulation of strategies to counter threats and capitalise on opportunities
in the market. For example, to understand new trends in the market.
iii) Tapping useful resources: If the company has a thorough knowledge of the external environment, it can
tap raw materials, technology and even financial resources from the market at economical prices at the
right time. For example, resources or raw materials which can be obtained from different countries.
iv) Better performance: Proper understanding of the various elements of the external environment is
necessary to take timely action to deal with threats and avail opportunities for the purpose of
improvement in the performance of the firm. For example, new entry of a competitor with advanced
technological product.
v) Sensitisation of entrepreneurs to cope up with rapid changes: A keen watch on the trends in
environment would help to sensitise the entrepreneur to the changing technology, competition,
government policies and changing needs of the customers. For example, changing trends in clothing.

Q6. Sheila has a degree in robotics and she loves to design products. She started her career in ‘Robotech’
which uses high end technology in all their products. Her job profile included travelling a lot also.
Whenever she travelled, she noticed that disabled people have difficulty in manoeuvring their wheelchair
from one place to another because in some places ramp is not provided and there is no way they can walk
up the stairs.
She came up with an idea of a wheelchair which can be used on stairs easily. She decided to quit her job
and start her own company. She realized that her idea was the first stage in the process of innovation.
Identify the concept and explain the steps in its process. (6 Marks)

Ans Creativity
The creative process:
The process of creativity involves five steps: 1. Idea germination, 2. Preparation, 3. Incubation, 4.
Illumination and, 5. Verification.
1. Idea germination: This is the seeding stage of a new idea. It is the stage where the entrepreneur
recognises that an opportunity exists. The idea germination takes place according to interest, curiosity of
the entrepreneur according to which opportunity is explored and exploited to its best potential. Creative
idea germinates besides the interest, the need of a specific problem or area of study.
2. Preparation: On the basis of the idea, interest and curiosity the need is adjudged by the entrepreneur
and he starts looking for the answer to implement the idea. If the idea is to launch a new product or
service then market research is conducted. That happens because the seed of curiosity has taken the form
of an idea. The entrepreneurs foresee the future of the product.
3. Incubation: This is the subconscious assimilation of information. This is the transition period. The
entrepreneur starts thinking about the idea and implementation in his/her sub-conscious mind.
4. Illumination: In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes
out with viable plan to give practical shape by collecting raw-material, arranging funds, policy–making for
the implementation of idea.
5. Verification: Also called the validation or testing stage. This is where the idea is verified to prove that it
has value. This is the most difficult phase of creativity as obstacles begin to appear. This is the developing
stage in which knowledge is developed into application.
 CBSE 2015-16 Delhi Paper

Q1. What is meant by a Business Opportunity? (1 Mark)

Ans An economic idea which can be implemented to create a business enterprise and earn profit.

Q2. Saurabh wants to start a new business. He is not sure of the type of business he should start. His friend
suggested him to seek the help of professionals. He contacted a professional who asked Saurabh to pay a
big amount for providing the repots and industry updates. Therefore, he decided to search for the reports
and industry updates himself. He scanned the relevant information from various
national and international websites.
Identify and state the way that Saurabh 1s using for spotting the trend. Also state one more way which will
help Saurabh in starting his business. (2 Marks)

Ans Read Trend- Entrepreneurs scan information from a wide variety of sources Eg. Newspapers, trade
associations etc.,

(Any one)
1. Talk Trend- they get involved in specific industry's trade association and attending both online and
offline.
2. Watch Trend- making it regularly to go to places where the target customers generally hang out.
3. Think Trend- as they absorb and mull about what they have read, heard and observed, they'll start to
make connections and observations that will lead to business boosting insights.

Q3. State the first three steps in the process of 'creativity'. (3 Marks)

Ans (i) Idea germination- it takes place according to the interest, curiosity of the entrepreneur according to
which opportunity is explored and exploited.
(ii) Preparation- the entrepreneur looks into ways through which the idea can be implemented.
(iii) Incubation- subconscious assimilation of information. It starts thinking about the idea and
implementation in his subconscious mind.
(Steps to be in order)

Q4. Abhiraj Chaudhary 1s into the business of manufacturing low — cost Diesel Cars in Germany. He is
earning good profits and ambitiously considering overseas expansion. He scans the environment for finding
out the opportunities and threats that may influence his current and future plans. He zeros down on India
as a potential place for his business expans1on as Indian Government has announced favourable trade
regulations. On selling the first lot of cars in India, the Indian Government noticed that the emiss1ons from
these cars were above the
permissible limit. The government asked him to make necessary modifications in his cars if he wanted to
continue business in India. He readily agreed to meet the emission norms set by the Indian Government.
(a) Quoting the lines from the above para identify any two environmental factors.
(b) Also, state any two values which Abiraj Chaudhary tried to communicate to the Indian Society. (3 Marks)

Ans (Any two environmental factors)

Political: “Indian government has announced favourable trade regulations”.
Ecological: “emissions from these cars were above the permissible limit”.
Legal: “Ready to meet the emissions norms set by the Indian government”.

Values: Sensitivity towards environment, fulfilling social responsibility. (Or any other suitable value)
Q5. State the factors that an entrepreneur has to take into consideration while assessing the market. (4
Marks)

Ans (i) Demand: the demand assessment will be based on the size of the target market, their preferences,
tastes and other related variables.
(ii) Supply and nature competition: to study the complete picture of quantities of the product made
available in the market by all the existing players.
(iii) Cost and Price of Product: to compare the cost of other available products in the market and cost
variable of competitors in terms of transportation delays etc., have to be studied to spot cost advantage.
(iv) Project innovation and change: technological advancements in the field have to be studied because
they may change the quality and influence the cost and price ultimately.

Q6. Naveen has just completed his B.Tech. and wants to start his own business. he knew that the demand
for electricity in India was increasing day by day. whereas its generation was not Sufficient. Naveen shared
his views with some of his friends and they all decided to start the business of electricity generation. They
experimented various methods and ultimately succeeded in electricity generation
through garbage. They all were happy as India is also facing the problem of garbage disposal.
(a) Identify and explain the source of 'idea-field* from where the idea had been generated by Naveen and
his friends.
(b) Also explain two other sources of Idea-fields with the help of example. (6 Marks)

Ans (a) Creative efforts

We have seen elsewhere that creativity is an important and key component of the talents and abilities
needed for an entrepreneur. Apart from applying creativity to spot and harness opportunities, it can also be
applied to develop new products and services.
There are basically five ways in which creative ideas can be generated:
1. Develop a new product or service.
2. Improve an existing product or service
3. Find a new process or resource for manufacturing a product.
4. Find new markets for existing products or Services.
5. Find a new use for an existing product or Service.

(b)(Any two explained with Suitable examples)

(i) Natural Resources: Natural resources Ideas can be generated based on natural resources. A product or
Service may be desired from forest resources, agriculture, horticulture, mineral, animal husbandry, wind,
sun, and human resource.
(ii) Existing products or services: any great business idea combines skills with imagination and market
demand. A business opportunity or idea often comes from everyday problems that someone solves.
Successful businesses find a need and fill it by providing a service or product.
(iii) Market driven or demand driven ideas: Market research yields valuable data about trends of supply,
demand, consumer preferences. It is a very important component of business strategy. Market research is a
key factor to maintain competitiveness over competitors. Market research provides important information
to identify and analyse the market need, market size and competition.
(iv) Trading related ideas: Trade in simple terms is buying goods and Services and selling them to
consumers at a profit. It is however, necessary for a prospective trader to be aware of the trends in an
economy. With the opening of the market to International Companies, large size departmental Stores,
chain shops and umbrella markets have become omnipresent.
(v) Service sector ideas: Entrepreneurial opportunities are not only restricted to the manufacturer. Service
sector is the most growing field these days the world over, thanks to emerging knowledge societies and
advancements in Information and Technology. So new opportunities can be identified by understanding the
linkages to different business activities. Eg. Tourism
 CBSE 2015-16 All India Paper

Q1. What is meant by Environmental Scanning? (1 Mark)

Ans Careful monitoring of an organization's internal and external environment for detecting early signs of
opportunities and threats that may influence its current and future plans.

Q2. Young man, Vipul wants to start a business. He is not sure of the type of business he Should start. His
friends Suggested him to Seek the help of professionals. He contacted a professional who asked Vipul to
pay a big amount for providing the reports and industry updates. Therefore, he decided to search for the
reports and industry updates himself. He Started looking for the required information and reports on
different web-Sites regularly. He also interacted with people for the type of products they would like to use
in future. In addition to this he visited trade fairs, malls, exhibitions etc. to assess the on — going trends.
Identify and state the way Vipul is using for spotting the trend. Also state one more way which will help
Vipul in starting his business. (2 Marks)

Ans Think trend (Explain in one sentence)

Anyone of the trends to explain in one sentence — Read Trend, Talk Trend, Watch Trend

Q3. Give the meaning of *Innovation'. State the elements in the innovation process. (3 Marks)

Ans Innovation is the process of entrepreneurship which involves the translation of a useful idea into an
application which has commercial value. Elements: (explanation in a statement form)
(i) Analytical planning
(ii) Organising resources
(iii) Implementation
(iv) Commercial application (steps to be in order)

Q4. Ankit is into the business of manufacturing low — cost diesel = cars in Germany. He is earning good
profits and ambitiously considering overseas expansion. He scans the environment for finding out the
opportunities and threats that may influence his current and future plans. He zeroes down on India as a
potential place for his business expansion as Indian Government has announced favourable trade
regulations. On selling the first lot of cars were above the permissible limit. The government asked him to
make necessary modifications in his cars if he wanted to continue business in India. He readily agreed to
meet the emission norms set by the Indian Government.
(a) Quoting the lines from the above para identify any two environmental factors.
(b) Also State any two values whichAnkit tried to communicate to the Indian society. (3 Marks)

Ans Environmental factors (any two) (quoting the line for 1/2 mark + 1/2 for identifying)
Political: Indian Government has announced favourable trade regulations
Ecological: Emissions from these cars were above the permissible limit
Legal: Ready to meet the emission norms set by the Indian Government

Values: Sensitivity towards environment

- Fulfilling social responsibility
- Or any other suitable value

Q5. State any four benefits of understanding the business environment relevant to an enterprise. (4 Marks)

Ans Any four benefits of understanding business environment (each point to be explained in a sentence)
(i) Identification of opportunities to get first mover advantage
(ii) Formulation of strategies and policies
(iii) Tapping useful resources
(iv) Better performance etc.

Q6. Rajeev has just completed his B.Tech and wants to start his own business. He knew that the demand of
electricity in India was increasing day by day, whereas its generation was not Sufficient. Rajeev Shared his
views with Some of his friends and they all decided to start the business of electricity generation. They
experimented various methods and ultimately Succeeded in electricity generation through garbage. They
all were very unhappy as India is also facing the problem of garbage disposal.
(a) Identify and explain the source of "Idea = field' from where the idea had been generated by Rajeev and
his friends.
(b) Also explain two other sources of Idea fields with the help of example (6 Marks)

Ans (a) Creative efforts. Briefly explain the idea field

(b)
(i) natural resources
(ii) Existing Products and services,
(iii) Market driven or demand driven ideas,
(iv) trading related ideas,
(v) service related ideas. (Explain any two with suitable examples)
 CBSE 2015-16 Sample Paper

Q1. Since her college days Mehak, loved the thrill of adventure sports. She was an avid reader which
helped her to keep track of various new adventure sports taken up all around the world. She had recently
read an article on increasing trend towards 'space tourism and adventurous holidays'. Using her personal
experiences and her passion for adventure sports she decided to start a company called ‘YOLO’. For the
same purpose she also decided to collect statistics to see how much of these sports were accepted in our
country. Identify the ways in which she was able to spot the trend. (1 Mark)

Ans Read Trends

Q2. 'For a viable venture to be born, an entrepreneur is required to apply his knowledge, skill,
competencies and creativity strategically to market'. Identify the requirement to be complied with by these
factors for successful processing of an idea into opportunity. (1 Mark)

Ans Strategic Positioning

Q3. Why does an entrepreneur need to scan environment? Explain. (2 Marks)

Ans The right information combined with the right adaptations can determine an organization future
viability. If an entrepreneur is not aware of the environment surrounding his or her business, he/she will
not succeed.

Q4. Explain any three sources which lead to the emergence of basic ideas. (3 Mark)

Ans 1. Problem
2. Change
3. Invention
4. Competition
5. Innovation
(Any three with one line explanation)

Q5. Shahida, a student of School of Rug Weaving Institute, Turkey, visited her grandparents in Kashmir for
the first time. Breathtaking mountain scenery, clear lakes, lush vegetation and magnificent forests
mesmerized her. The valley is home to a rich biodiversity including a large number of bird species, many of
which are unique to Kashmir. It is home to Yak and sheep that are taken care of by nomads. Kashmiri
lifestyle is essentially slow paced and reflects religious diversity. Kashmiris are known to enjoy their music
in its various local forms, and the traditional dress of both genders is often quite colorful. Tulip, Saffron, dry
fruits and artistic woodwork are its hallmark.

She also observed that the government was stable and all the tourist places were well guarded by the
army. She found it to be an ideal place to start a unit for carpet weaving and employ local people to
preserve the ethnic touch. After the devastating floods a considerable population was rendered jobless,
her unit would help to revive their economic condition. She started scanning and screening the
environment and collected the following information.

a. Help her categorize the information making use of PESTEL MODEL.(Any three)
b. Also state a value communicated by Shahida. (4 Marks)

Ans a.
i. Political: The political environment includes taxation policy, government stability and foreign trade
regulations.
ii. Economic: The economic environment includes interest rates, inflation, business cycles, unemployment,
disposable, income, energy, availability and cost.
iii. Social: The social/cultural environment includes population demographics, social mobility, income
distribution, lifestyle changes, attitudes to work and leisure, levels of education and consumerism.
iv. Ecological: It considers the ways in which the organisation can produce its goods or services with
minimum environmental damage.
(Any three)

b. Sharing and compassion.

Q6. Explain the factors that help an entrepreneur to identify a product. (4 Mark)

Ans The factors that help an entrepreneur to identify a product are:

1. Application and use
Ideas should be examined for their real life use and application. If it already exists in the market, we will
have to find out its present use, then we may think of modifying it for better use.
2. Level of operation
This is a crucial test for product/service identification. Depending on the use of the product/service the
entrepreneur will produce it in a cottage industry or a small scale–industry or a large–scale industry.
3. Cost
What is the per unit cost of the product at particular level of operation? Whether this cost is comparable
with that of other competitive products? These are some of the questions that have to be answered. This
will ultimately decide the sale price.
4. Competition
Any product or service will face market competition at some stage. So market competition should be
assessed through a study of the trends in demand and supply.
5. Technical complexity
What type of technology is required to produce the product? Whether training and application of such
technology will be locally available or will it have to be supported from other places? What would be the
position of supply of plant and machinery for such a technology? These are important issues that have to
be resolved.
6. Annual turnover and profit margin
Ideas should also have to be examined on the basis of expected annual turnover. This will also indicate the
market share of the product or service

Q7. Bunty, a fitness freak NRI, had done his masters in nutritional sciences from U.K., during his vacations,
he was disappointed to see that no Gymnasium in Delhi had a workout module to suit his requirement.
Anyhow, Fitness Fine Gymnasium of his friend offered him freedom to exercise the way be wanted. In
short time, Bunty became popular amongst the other members because of his knowledge, experience,
competency, tactics and tips on exercising.

He now explored deeply his curiosity of starting a Gymnasium in Greater Kailash 2, having a fusion of both
diet and exercise under one roof. He conducted a market research and subconsciously assimilated a whole
data bank of information pertaining to lifestyle, interests, etc. of people in and around the area. He
approached his father for financial help of Rs. 25 lacs as he had Rs 20 lacs only. The ground floor of his flat
was to be converted into a Gymnasium. He started networking and negotiating with the manufacturers
who could provide him with customized machines of his choice.

"One of the first task demanded of an entrepreneur is to manifest creative ability through the conceiving of
new product-market propositions" – Identify and explain the steps involved in this process being initiated
by Bunty. (6 Marks)
Ans Creativity;
It is important to entrepreneurs because it is the first stage in the process of innovation, providing he
stimulus for opportunity discovery and new venture creation.

As from the initial acts of creativity entrepreneurs build effective organizations, it does not happen
overnight thus the process of creativity Bunty underwent involved the following steps.
1. Idea germination. “Looking at the statistics…. concern for fitness,” acted as the seeding stage for his
idea of launching hi tech gymnasium. It is this stage where the entrepreneur recognizes the existing of an
opportunity. Being himself fitness conscious he explored according to his inters an opportunity.
2. Preparation and Incubation. As on the basis of the idea interest and curiosity the need is adjusted by
the entrepreneur next and he starts looking for the answer to implement the idea Bunty conducted market
research in and around the target market to foresee the future of his idea.
3. Illumination. “Therefore he approached …machines.” is the step of illumination where now Bunty is now
trying to give his idea a practical shape through a viable plan by collection raw materials, arranging for
funds, negotiating so as to implementing his idea.
 CBSE 2014-15 Sample Paper

Q1. List any two factors included in ‘micro environment’? (1 Mark)

Ans a. Suppliers
b. Customers
c. Intermediaries
d. Competitors
e. General public (Any two from the above)

Q2. Hina, was manufacturing beauty products and was always on the lookout to improvise her products.
She used social media and online surveys to understand the latest trend in customer needs and overall, in
the cosmetics industry. Through the surveys, she understood that the customers prefer natural ingredients
like Multani Mitti or neem in place of chemicals in the beauty products.
Responding to the customers’ needs, she developed a ‘Multani Mitti cum neem face pack’ in an attractive
package. It was highly priced as she knew that the customers will be ready to pay the price for the quality.
Her face pack was an instant success. Identify the ‘Way’ in which Hina spotted this trend.

Ans Think Trends

Q3. State the steps in the ‘Creative Process’ after the ‘stage of preparation’? (3 Marks)

Ans Incubation: This is the subconscious assimilation of information. This is the transition period. The
entrepreneur starts thinking about the idea and implementation in his sub- conscious mind.
Illumination: In this period of illumination the idea re-surfaces in realistic way and entrepreneur comes out
with viable plan to give practical shape by collecting raw-material, arranging funds, policy making for
implementation of idea.
Verification: Also called the validation or testing stage. This is where the idea is verified to prove that it has
value. This is the most difficult phase of creativity as obstacles begin to appear. This is the developing stage
in which knowledge is developed into application.

Q4. State the elements of ‘Innovation Process’? (4 Marks)

Ans. Analytical planning – Carefully identifying the product or service features, design as well as the
resources that will be needed.
Resource organization – Obtaining the required resources, materials, technology, human or capital
resources.
Implementation – Applying the resources in order to accomplish the plans and delivering results.
Commercial application – The provision of value to customers, reward employees, and satisfy the stake
holders.

Q5. Disha, a graduate of Horticulture from Kurushetra University came across a barren land near Solan
when she visited this place. Disha was fond of strawberries and was inquisitive to understand the reason
why strawberries could not be grown there. She was informed by the local authorities that the land was
infertile for raising strawberries. She took this as a challenge and believed in its success. Best quality
strawberries now mark the beauty of that barren piece of land.
(a) Identify and explain the ‘idea field’ from where the idea has been generated.
(b) Also explain and give one example each for four other idea fields which may generate useful product
ideas. (6 Marks)
Ans a. Natural resources- ideas can be generated on the basis of natural resources.

b. i. existing products or services- a great business idea combines skills with imagination and market
demand. Eg., Improved packaging in chips to retain freshness
ii. market driven or demand driven- one important method for generating ideas is to carry out market
research. It is an organized manner to gather information about target markets and help to understand the
latest trends. Eg., need for smart phones
iii. Trading related- trading these days are not confined to ordinary grocer or distributor outlets. Eg.,
Flipkart
iv. Service sector- service sector is growing worldwide due to advancements in information and
technology. Eg. Career counselling centres
v. creative efforts- apart from applying creativity to spot and harness opportunities, it can also be
developed to develop new products and services. Eg., Flat screen tv
 CBSE 2014-15 All India Paper

Q1. Balwant Singh of Bikaner thought of air-conditioned houses which do not require electricity. He wanted
to explore the idea of construction of such eco-friendly houses which will remain cool in summers and
warm in winters. He conceived the idea in 2010 but the final product could take shape in 2014. Name the
stage in ‘The Creative Process’ described in the above lines. (1 Mark)

Ans Idea germination

Q2. Give the meaning of ‘Ecological Environment’. (1 Mark)

Ans It considers the ways in which the organisation can produce it’s goods or services with minimum
environmental damage.

Q3. What is meant by ‘Problem Identification’? State any two objectives and also give an example of
problem identification. (3 Marks)

Ans A problem is a roadblock in a situation, something that sets up a conflict and forces you to find a
solution.
Objectives: - (any two)
1. It should clearly state the problem.
2. Identify target group facing the problem.
3. Identify the market acceptability of solution to the product.
Example: Ready to eat foods for the younger career-oriented generation. (Or any other suitable example)

Q4. The first step in the creative process is ‘Idea Germination’. State the other steps of this process. (4
Marks)

Ans 1. Preparation- on the basis of the idea, interest and curiosity an entrepreneur starts looking for an
answer to implement the idea.
2. Incubation- this is a sub-conscious assimilation of information.
3. Illumination- the idea resurfaces in a realistic way in the form of a viable plan.
4. Verification- the idea is verified to prove that it has value.

Q5. One of the keys to business success is to anticipate what the market will want or need. Since it is not
possible for an entrepreneur to see into the future, there is one best way. The best way will help the
entrepreneur to understand the market and produce goods or services accordingly.
(a) Identify the concept stated in the above lines
(b) Explain any three ways in which an entrepreneur can perform the activities related to concept
identified. (6 Marks)

Ans (a) Trend spotting

(b) Ways in which an entrepreneur spots trend: (Any three)

1. Read trends: They regularly read the leading publications and websites affecting their business. This
could include industry publications, trade association sites, major newspapers, key business magazines,
thought leaders and influential bloggers.
2. Talk trends: They get involved in specific industry’s trade association and attending events and talk to
customers both online and offline. They also take advantage of social networking tools like LinkedIn and
Facebook.
3. Watch trends: They make it a point to regularly go where their target customers hang out. The
entrepreneur spends some time simply watching and observe what people eat, doing, wearing, using etc.,
4. Think trends: As they absorb and mull about what they’ve read, heard and observed, they’ll start to
make connections and observations that will lead to business-boosting insights.
 CBSE 2014-15 Delhi Paper

Q1. Give the meaning of ‘Legal environment’. (1 Mark)

Ans It covers all such areas such as taxation, employment, law monopoly, legislation and environmental
protection laws.

Q2. ‘It is the process of entrepreneurship which involves the translation of a useful idea into an application
which has commercial value’. Identify the process. (1 Mark)

Ans Innovation.
Note: In case an examinee has mentioned “Sensing of entrepreneurial opportunities” ½ mark may be
given.

Q3. What is meant by ‘Problem Identification’? State it’s any four uses and also give an example. (3 Marks)

Ans (a) A problem is a roadblock in a situation, something that sets up a conflict and forces you to find a
solution.
(b) It has the following uses:(Any four)
Bring out new products in the market; understand the problems and needs of the market; be creative;
increase employment generation; increase national income
(c) Example: ready to eat foods for the younger career-oriented generation (or any other suitable example)

Q4. ‘Information for environmental scanning can be collected from several sources.’ State any four such
sources. (4 Marks)

Ans (Any four)

1. Verbal information from customers, wholesalers, retailers, distributors, consultants., etc;
2. records of companies;
3. government publications;
4. publications by various financial institutions; and
5. formal studies conducted by strategic planner

Q5. ‘The process of generation of ideas’ can be streamlined by developing an awareness about it and these
work as the convenient frames of references for this.
(a) Identify the concept stated in the above para
(b) Explain any three sources of the concept identified which are used by an entrepreneur. (6 Marks)

Ans (a) Idea fields

(b)(Any three)
(1) Natural resources: Ideas can be generated based on natural resources. A product or service may be
desired from forest resources, agriculture, horticulture, mineral, animal husbandry, wind, sun, and human
resource.
(2) Existing products or service: A business opportunity or idea often comes from everyday problems that
someone solves. Successful businesses find a need and fill it by providing a service or product.
Entrepreneurs who look at ways to make an existing product or service better can be as successful as those
who create or invent products.
(3) Market driven or demand driven: Market research is any organized effort to gather information about
target markets or customers. Ideas can be generated based on existing demand in the market. It is a very
important component of business strategy.
(4) Trading related: Trade is buying goods and services and selling them to consumers at a profit. One big
advantage that trading has over other types of businesses is that it is easier to launch and less risky. It is
however, necessary for a prospective trader to be aware of the trends in an economy.
(5) Service sector: Service sector is the most growing fields these days due to emerging knowledge
societies and advances in Information and Technology. So new opportunities can be identified by
understanding the linkages to different business activities.
(6) Creative efforts: There are basically five ways in which creative ideas can be generated:
1. Develop a new product or service.
2. Improve an existing product or service.
3. Find a new process or resource for manufacturing a product.
4. Find new markets for existing products or services.
5. Find a new use for a product or service.