Assessment Zone 4.

1
A. Read the following statements and select () the correct option. (MCQ)

1. It is the act of creating a business or an organization for profit or for social needs.

(a) Entrepreneurship (b) Start up (c) Partnership

2.

People who work for someone else.

(a) Entrepreneur (b) Employee (c) Officers

3.

People who own, operate and take risk of a business venture.

4.
(a) Employee (b) Leader

Which of the following characteristics should an entrepreneur have?
(c)
Entrepreneur

(a) Creative (b) Futuristic

5. Which of the following are the functions of an entrepreneur?

(c) Leadership (d)
 All of them
(a) Decision making (b) Innovation (c) Risk taking (d)
All of them
6. Which of the following is a disadvantage of entrepreneurship as a career?

(a)  Uncertainty of money (b) Independence (c) Ambition fulfillment

7. Which of the following is an advantage of entrepreneurship as a career?
(a) Flexibility (b) Control (c)
8. Which of the following shows the process of creating something new?
Freedom (d)
All of these
(a) Business model (b) Modeling (c) Creative flexibility (d)  Innovation
9. Evaluation of your strength and weaknesses is called as:
(a) Self Assessment (b) Leadership (c) Motivation
10. The ability to learn a particular kind of job.
(a) Aptitude (b) Innovative (c) Hardworking
B. State which of the following statements are True or False.
1. Entrepreneur and inventor mean essentially the same thing.
False
...........
False
2. Entrepreneurship only pertains to starting new businesses, not existing firms. ...........
3. The number one characteristic shared by successful entrepreneurs is creativity. True
...........
4. According to research, most entrepreneurs are born, not made. False
...........
5. Only individuals that thrive on taking big risks have the right personality to be an entrepreneur. ...........
C. Give one word answer for the following statements.
1. A person who accepts the risk of starting and running a business. Entrepreneur
..............................
2. Name any characteristic of a successful entrepreneur. Confidence
..............................
3. Any one disadvantage of being an entrepreneur. Uncertainty..............................
of Profit

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 4. Which personal characteristic of successful entrepreneurs reflects that successful
entrepreneurs are accountable for their actions? Leadership
..............................
5. Which personal characteristic of successful entrepreneurs reflects that successful Hardworking & Passion
entrepreneurs work until the job is done? ..............................
6. Which personal characteristic of successful entrepreneurs reflects that successful
entrepreneurs want to make their own decisions, set their own schedules, and can Strong Work Ethics
work without supervision? ..............................
D. Write short answer for the following questions.
1. What is meant by an entrepreneurship?
Entrepreneurship is the act of creating a business or an organization for profit or for social needs.
2. Who is an entrepreneur?
Entrepreneur is a person, who starts his/her own business, especially when this involves seeing a new
opportunity.
3. Give two characteristics of entrepreneur.
The two characteristics of entrepreneur are creativity and confidence.
4. Give two functions of entrepreneur.
The two functions of entrepreneur are: risk bearing function and decision making function.
5. What are common myths about entrepreneurs? Name any two.
The two common myths about entrepreneurs are: they are born not made and they love risk.
6. What are the important roles of entrepreneurship in a Society? Name any two.
The important roles of entrepreneurship in a Society are they create employment opportunities and create social
change.
7. Why do you need a business plan?
A business plan is needed at the first stage because a lot of mistakes are made by new businesses rushing into
things without pondering these aspects of the business. We need to find your target customer base. Who is going to buy
our product or service? If we can't find evidence that there's a demand for our idea, then what would be the point to
start this business?
8. Name any three business opportunities available for entrepreneurs in India.
The three business opportunities available for entrepreneurs in India are: Organic farming, healthcare sector and
Tourism.
9. Give any two advantages of entrepreneurship as a career.
The two advantages of entrepreneurship as a career are Job satisfaction and flexibility in working
10. Give any two disadvantages of entrepreneurship as a career.
The two disadvantages of entrepreneurship as a career are no regular salary and hectic work schedules.
5. Answer the following questions.
1. What are the various functions of an entrepreneur?
The various functions of an entrepreneur are:

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Decision Making Function
Risk‐Bearing Function
Innovative Function
Managerial Function
2. Explain briefly any five myths about entrepreneurship.
Myth No. 1: Entrepreneurs Are Born Not Made: Many people believe that entrepreneurs possess innate, genetic talents.
However, experts generally agree that most entrepreneurs were not born, they learned to become entrepreneurs.
Myth No. 2: Entrepreneurs Love Risk: Another common misconception is that entrepreneurs love risk and that you have
to be a big risk‐taker to become an entrepreneur. However, when it comes to risk preferences business owners aren't
that much different from the general public.
Myth No. 3: Entrepreneurship Is For Young Men
Myth No. 4: Entrepreneurs Do Not Have Bosses
Myth No. 8: Entrepreneurs Don't Have A Personal Life

3. Discuss important roles of entrepreneurship in a society. Explain in 150 words.

Society can be described as an aggregate of people living together in a community or basically a situation of being in the
company of others. An enterprise is nurtured by the society. Thus, we can say, it is a portion of society. An entrepreneur
needs society for him to establish a business while the society clearly cannot function without the presence of
entrepreneurs. In the social environment, both of them share a close bonding where in they affect each other and share
their profits and loss combined.
Entrepreneurship is a key to the national development and solution of many problems. The process of Entrepreneurship
is like planting a new tree. An entrepreneur is like a tree. A tree provides filtered air for humans, fruits for kids, grass for
animals, home for birds and wood for the farmer. Entrepreneurship brings a new solution to old human problems,
provides jobs for skilled people, increases demand in the market, brings competition to produce top quality products and
services, it is a source of income for government and influences society with leadership skills.
4. Explain briefly about the steps one should take to become an entrepreneur.
Step 1: Find and Refine your business idea: This is probably the most daunting area for people. In fact, the most common
reason why people haven't started a business on the side is because they 'just don't have a good business idea'.
Step 2: Plan your business : Before you begin your business, you need to have a business plan. You need to ask yourself a
few important questions: What is the purpose of your business? Who are you selling to? What are your end goals? How
will you finance your startup costs? These questions can be answered in a well‐written business plan.
Step 3: Understanding Finance Options : Unfortunately, good ideas often take money to get started. Starting any business
will depends on a price, so you need to determine how you are going to cover those costs. Do you have the means to
fund your startup or will you need to borrow money?
Step 4: Plan Opening: Depending on the type of business you've chosen, a number of activities need to occur before you
open your doors.
Step 5: Educate Yourself: There is a common myth in popular culture that successful, self‐made entrepreneurs never
graduate from college. The numbers, however, don't back this up. According to a team of researchers, over 95% of
entrepreneurs in high‐growth industries have at least a bachelor's degree.

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 5. List out some business opportunities available for entrepreneurs in India.
Business opportunities available for entrepreneurs in India are:
Tourism: The Indian tourism industry is on the verge of becoming a major global destination. India's travel and tourism
industry is becoming one profitable business, welcoming new and settled investors for creating their presence in the
tourism industry.
Textiles: India is famous for its textiles since long time. It is worth mentioning that the style of apparel is unique from
region to state, thus, offering a diversified market for apparel / textile products in the country.
Software: India is known for its largest pool of world class software engineers world over. IT sector has contributed
substantially to the Indian economy. With one of the largest pool of software engineers, Indian entrepreneurs can set
higher targets in hardware and software development.
Ayurveda and Traditional Medicine : India is well known for its herbal and Ayurvedic products. With increasing awareness
about the ill‐effects of allopathic medicines, there will be a huge demand for cosmetics, natural medicines and remedies
in the coming time.
Organic Farming : Organic farming has been in practice in India for a long time. The importance of organic farming will
assume increasing importance in the country which is evident by the fact that increasing number of consumers especially
foreigners have been preferring to only organic products.
6. What are the advantages and disadvantages of entrepreneurship as a career?
Advantages And Disadvantages of Entrepreneurship As A Career
Advantages
Control: You choose the work you like to do and that makes the most of your strengths and skills. The result can be more
job satisfaction.
Excitement: Entrepreneurship can be exciting and many entrepreneurs consider their work highly enjoyable. Each day is
filled with new opportunities to challenge your abilities, skills and determination.
Flexibility: Entrepreneurs can schedule their work hours around other commitments, including spending quality time
with their families.
Freedom: Freedom to work whenever they want, wherever they want, and however they want draws many to
entrepreneurship. Most entrepreneurs don't consider their work actual work because they are doing something they
love.
Rational Salary: As an entrepreneur, your income is directly related to your efforts and the success of your business.
Disadvantages
Administration: While making all the decisions can be a benefit, it can also be a burden. Being an entrepreneur comes
with a lot of paperwork that can take up time and energy.
Competition: Staying competitive is critical as a small business owner. You will need to differentiate your business from
others like yours in order to build a solid customer base and make your business profitable.
Loneliness: It can be lonely and scary to be completely responsible for the success or failure of your business.
No Regular Salary: Being an entrepreneur often means giving up the security of a regular paycheck. If business slows
down, your personal income can be at risk.
Hectic Work Schedule: The work schedule of an entrepreneur can be unpredictable.