Entrepreneurship – Business Management Ethics and Entrepreneurship Notes

Entrepreneurship – Business Management Ethics and Entrepreneurship Notes

Introduction:

• The concept of entrepreneurship was first established in 1700s.
• Cantillon referred entrepreneurs as one of the classes of landowners.
• Entrepreneurship originated in middle ages and it was applied to “the man incharge of the great architectural works: castles and fortification, public buildings, abbeys and cathedrals”.
• The Merriam Webster dictionary defined it as ‘one who organizes, manages and assumes the risks of a business or enterprise.’
• In business context – it means to undertake a business activity or simply to start a business.
• Entrepreneurship in simple words is defined as the process of taking risk and earning profit.
• The word entrepreneur is derived from the french word “entreprendre” which means to “undertake”.
• Entrepreneurship is central for enhancing the economic opportunity of nations.

Entrepreneurship involves the following key elements.

• Innovation
• Risk-Taking
• Vision
• Organising skills

Entrepreneurship is a risk-taking factor which is responsible for the end result in the form of profit or loss.

In the 20th century, an economist Joseph Schumpeter viewed entrepreneurship as a force of “creative destruction”

The entrepreneurial motivation is one of the most important factors which accelerates the pace of economic development by bringing the people to undertake risk-bearing activities.

The entrepreneurship is essentially a creative activity or it is an innovative function. – Schumpeter

Entrepreneur is one who searches for change, responds to it, and exploits those changes as an opportunity. – Peter Drucker

Entrepreneurship is neither a science nor an art. It is a practice. It is knowledge-based. Knowledge in entrepreneurship is a means to an end, that is, by the practice” – Peter Drucker

Characteristics of Entrepreneurship:

• It is a continuous process.
• It is essential for economic development.
• It involves taking risk and giving result.
• It generates self-employment.
• It can be regarded as a factor of production.
• It is an innovative activity.
• Create awareness among people about economic activity.
• It creates human relation.

Traits/ Qualities of an entrepreneur:

• He takes risk to achieve goals
• He has a creative and innovative thinking
• He owns his enterprise
• He possess a sense of leadership
• He is independent and takes personal responsibility
• He has the ability of converting an idea into an opportunity
• He is future-oriented.
• Dissatisfied with the routine activity
• He is innovative.

Entrepreneur:

• Entrepreneurship is a process whereas entrepreneur is a person performing the process.
• Entrepreneur is a trench word which means done who undertakes an endeavour”
• An entrepreneur possesses creativity which means continuous learning questioning and thinking out of the box.

There is a direct relationship between your efforts and your income if you are an entrepreneur i.e. if your efforts are more then your reward should be more too.

Advantages of being an entrepreneur:

• Can choose your favourite job i.e. doing what you love
• Independence and freedom
• It provides recognition.
• It gives a feeling of self satisfaction
• The income earned will have direct relationship with the efforts that are put i.e. more effort more reward.
• An entrepreneur is his own boss.
• An entrepreneur can bring many innovations in the organization which is the need of the hour.

Characteristics of an Entrepreneur:
(i) Mental Ability:
He must have creative thinking and ability to anticipate changes.

(ii) Business Secrecy:
He should guard his business secrets.

(iii) Human relations:
He should maintain good relations with his customers, employees etc.

(iv) Clear objectives:
He should have clear objectives about the nature of business.

(v) Communication skills:
He should have good communication skills.

Advantages of Entrepreneurship:

1. An entrepreneur does what he loves and thus works with passion to succeed.
2. Entrepreneurship allows a degree of freedom and independence.
3. Entrepreneur has the feeling of recognition and self-fulfilment.
4. Entrepreneurship offers a greater possibility for achieving significant financial rewards.
5. Entrepreneurship are their own boss.
6. Entrepreneurship leads to innovation and helps the local economy.

Types of entrepreneurs:

• Idealist: He works on the basis of ideas formulated by him.
• Optimizer: He has an optimistic approach and is satisfied with whatever he has.(Personal satisfaction of being a business owner.)
• Hard workers: They believe in working hard to get the gains.
• Sustainers: They maintain a proper balance between work and personal life. Apart from work, they need time for personal life.
• Improvers: Their aim is to improve the society with their work. Their motto is to work in a manner which is morally and ethically correct so as to contribute to noble cause.
• Adviser: These entrepreneurs have a habit of advising and pleasing their customers. They have a customer-oriented business.
• Superstar: These types of entrepreneurs wins the heart of the people through their overwhelming personality and charisma.
• Artiste: These are creativity oriented entrepreneurs. Their business activity is centered around creativity.
• Visionary: These types of entrepreneurs see a dream and then put their best efforts to make that dream come true.
• Analyst: These are expert at problem-solving techniques and making analyses.
• Fireball: Such entrepreneurs are full of energy and enthusiasm but are too impulsive at times which leads to wrong decision making.
• Juggler’s: These types of entrepreneurs love to take chances in business. They believe that they can handle every situation.
• Hero: These entrepreneurs are great leaders. They motivate and inspire people around them.
• Healer: These are cool and calm by nature and tries to bring about harmony in the organisation.

Difference between an Entrepreneur and a Manager

Entrepreneur	Manager
(i) An entrepreneur conceives an idea and establishes the business with that idea	A manager provides his services to the business established by the entrepreneur.
(ii) An entrepreneur takes risks arid gets the rewards	A manager does not take risk and gets a fixed remuneration.
(iii) The main objective of the entrepreneur is to do innovations in the organization.	The objective of manager is to supervise and manage the existing work.
(iv) As entrepreneur is himself the owner, he does not has the motive of deceiving the organization.	Managers may sometimes be induced to involve in fraud or thefts.
(v) An entrepreneur becomes an entrepreneur by his qualities I.e. innovative thinking, risk-bearing etc.	A manager becomes a manager by his qualifications I.e. education and degrees.
(vi) Survival and achieving long term growth.	Short-term to meet deadlines set by top management.
(vii) Delegated to one self.	Delegated by top management.

Nutshell:
An entrepreneur could be a manager but a manager cannot be an entrepreneur”.

Entrepreneurship:

• Intrapreneurship is a process by which a person win the organization takes responsibility to turn an idea into opportunity.
• This word was coined by Gifford Pinchot author of the book Intrapreneuring” written in 1985.
• intrapreneurship = Entrepreneurship + Management skills
• In simple words, it is the practice of entrepreneurship by the employees within an organization i.e. when manager acts as an entrepreneur it is known as Intrapreneurship.

Characteristics:

• It Involves motivating the managers to take responsibility and act as entrepreneurs.
• Such tasks are funded and have a support of the main organisation.
• Creates wealth both for the manager as well as for the organization.
• There are lesser chances of failure due to backing from the headquarters.

Difference between Entrepreneur end Intrapreneur:

Entrepreneur	Intrapreneur
(i) He is the owner of the business.	He is the employee of the business, generally the manager.
(ii) He likes innovations and develops new ideas for the organization.	He does innovations not in the organization but for a particular product or service.
(iii) An entrepreneur shows his skills outside the organization by grabbing opportunities in the market.	An intrapreneur shows all skills, creativity etc. within the organization. He is an inside entrepreneur.
(iv) Risk is high.	Risk is moderate.

Nutshell: Not every business needs an entrepreneur but every business needs an Intrapreneur.

Nature of Management and its Process MCQ Questions

1. The word Entrepreneur has a ……………………… origin.
(a) Latin
(b) French
(c) German
(d) Indian
Answer:
(b) French

2. The word “ entreprendre’ means:
(a) to undertake
(b) to manage
(c) to enter into business
(d) None of these
Answer:
(a) to undertake

3. Anybody who wants to work for himself is known as-
(a) Entrepreneur
(b) Intrapreneur
(c) Manager
(d) None
Answer:
(a) Entrepreneur

4. Which of these is not an element of entrepreneurship?
(a) Innovation
(b) Risk-taking
(c) Profit-making
(d) Visionary
Answer:
(c) Profit-making

5. Who viewed entrepreneurship as a force of” creative destruction”
(a) Schumpeter
(b) Cantillon
(c) Peter Drucker
(d) None of these
Answer:
(a) Schumpeter

6. Entrepreneurship is neither a science nor an art was expressed by:
(a) Schumpeter
(b) Peter Drucker
(c) Charles Darwin
(d) Adam Smith
Answer:
(b) Peter Drucker

7. Entrepreneurship is a continuous process. State true or false:
(a) True
(b) False
(c) Partly true
(d) None
Answer:
(a) True

8. Which of these is not a trait of an entrepreneur?
(a) Innovative
(b) Future oriented
(c) Independent
(d) None of these.
Answer:
(d) None of these.

9. ………………… refers to the strong desire to achieve success.
(a) Dedication
(b) Determination
(c) Passion
(d) Self-confidence
Answer:
(b) Determination

10. A combination of common sense with knowledge and experience is termed as
(a) Leadership
(b) Flexibility
(c) Smart
(d) None of these.
Answer:
(c) Smart

11. An entrepreneur should have which of the following feature:
(a) Mental ability
(b) Communication skills
(c) Clear objectives
(d) All of these
Answer:
(d) All of these

12. ……………………. type of entrepreneurs manage both work and personal life together.
(a) Hero
(b) Healer
(c) Sustainer
(d) Artiste
Answer:
(c) Sustainer

13. One who nurtures the business by bringing harmony in the organization is known as-
(a) Superstar
(b) Healer
(c) Sustainers
(d) Advisers
Answer:
(b) Healer

14. An entrepreneur who is always ready to take chances is called ……………………………. .
(a) Superstar
(b) Hero
(c) Juggler
(d) Fireball
Answer:
(c) Juggler

15. A manager can be an entrepreneur but an entrepreneur cannot be a manager. The above statement is:
(a) True
(b) False
(c) Partly true
(d) None
Answer:
(b) False

16. When a manager becomes an entrepreneur he is called:
(a) Intrapreneur
(b) Sustainer
(c) Manager only
(d) None
Answer:
(a) Intrapreneur

17. …………………………………. is a method for the companies to reinvest themselves and improve performance.
(a) Entrepreneurship
(b) Intrapreneurship
(c) Management
(d) None
Answer:
(b) Intrapreneurship

18. Every business needs an ………………………. .
(a) Entrepreneur
(b) Intrapreneur
(c) Both
(d) None
Answer:
(b) Intrapreneur

19. One who is never dull in terms of enthusiasm, energy and attitude is …………………………….. .
(a) Fireball
(b) Juggler
(c) Superstar
(d) Hard worker
Answer:
(a) Fireball

20. Who can become an intrapreneur?
(a) Manager
(b) Employee
(c) Outsider skilled person
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)

21. In which year the concept of entrepreneurship was first established.
(a) 1700
(b) 1900
(c) 1990
(d) 1600
Answer:
(a) 1700

22. Who referred entrepreneurs as one of the classes of ‘land owners’.
(a) Peter Drucker
(b) Henry Fayol
(c) Cantillon
(d) None of these
Answer:
(c) Cantillon

23. According to whom, entrepreneurship is a Practice.
(a) Peter F Drucker
(b) A Schumpeter
(c) Cantillon
(d) None of these
Answer:
(a) Peter F Drucker

24. ‘A large income is the best recipe for happiness ever heard of ”.
(a) Napoleon Hill
(b) Maslow
(c) June Austen
(d) Hilaire Belloc
Answer:
(c) June Austen

25. Intrapreneurship is a combination of entrepreneurship and.
(a) Management skill
(b) Innovative skill
(c) Profit-making
(d) Risk-taking
Answer:
(a) Management skill

26. ………………………………. is devoted to the Promotion of any noble cause.
(a) Artiste
(b) Idealist
(c) Improver
(d) Visionary
Answer:
(c) Improver

27. “ Your real boss is the one who walks around under your hat”.
(a) Maslow
(b) Napoleon Hill
(c) Hilaire Belloc
(d) None of these
Answer:
(b) Napoleon Hill

28. The word intrapreneur was coined by Gifford Pinchot author of the book “Intrapreneuring” written in ………………… .
(a) 1986
(b) 1977
(c) 1985
(d) 1983
Answer:
(c) 1985

29. In the 20th century, an economist Joseph Schumpeter viewed entrepreneurship as a force of …………………….. .
(a) Risk-taking
(b) Profit-making
(c) Creative destruction
(d) Innovative skill
Answer:
(c) Creative destruction

30. Which of the following is not a key element of Entrepreneurship?
(a) Innovation
(b) Vision
(c) Motivation
(d) Risk-taking
Answer:
(c) Motivation

31. A person who searches for change, responds to it and exploits those changes as an opportunity is called?
(a) Manager
(b) Leader
(c) Entrepreneur
(d) Explorer
Answer:
(c) Entrepreneur

32. Which of the following is not a trait of an Entrepreneur?
(a) Innovative
(b) Satisfied with the routine activity
(c) Moderate risk taker
(d) Works under uncertainty
Answer:
(b) Satisfied with the routine activity

33. For a true entrepreneur, “success is the motivator and money is the ……………………. .
(a) Reward
(b) Objective
(c) Goal
(d) Need
Answer:
(a) Reward

34. Which of the following is not a very essential characteristic of an Entrepreneur?
(a) Mental Ability
(b) Communication Ability
(c) Clear objectives
(d) Pervasive
Answer:
(d) Pervasive

35. The most common type of Entrepreneur is
(a) Improver
(b) Idealist
(c) Super Star
(d) Hard workers
Answer:
(b) Idealist

36. The Entrepreneur which believes in consumer sovereignty is called.
(a) Improver
(b) Advisor
(c) Super Star
(d) Artiste
Answer:
(b) Advisor

37. The Entrepreneur who works for a noble cause, morally and ethically is called
(a) Optimizer
(b) Idealist
(c) Super Star
(d) Improver
Answer:
(d) Improver

38. Which of the following is not a type of Entrepreneur?
(a) Sustainer
(b) Improver
(c) Explorer
(d) Fireball
Answer:
(c) Explorer

39. The entrepreneur who are full of life, optimist and energetic are called as
(a) Jugglers
(b) Hero
(c) Healer
(d) Fireball
Answer:
(d) Fireball

40. The entrepreneur who makes an effort to manage everything themselves are called.
(a) Jugglers
(b) Fireball
(c) Hero
(d) Hard workers
Answer:
(a) Jugglers

41. The entrepreneur having good leadership skills and capability to inspire others are called.
(a) Hero
(b) Healer
(c) Artiste
(d) SuperStar
Answer:
(a) Hero

42. An Entrepreneur who has a charisma, charm and high energy and uses them to build his own personal brand is called.
(a) Hero
(b) Fireball
(c) Super Star
(d) Healer
Answer:
(c) Super Star.

43. The entrepreneur who makes a scenario planning to pre-prepare for any kind of turmoil is called.
(a) Healer
(b) Artiste
(c) Idealist
(d) Optimizer
Answer:
(a) Healer.

44. Which of the following statement is False?
(a) An entrepreneur develops new plans and ideas and the manager implements them.
(b) A manager faces more income uncertainties than entrepreneur
(c) The areas of required qualification for a manager and entrepreneurship are quite different.
(d) An entrepreneur can be a manager but a manager can not be an entrepreneur
Answer:
(b) A manager faces more income uncertainties than entrepreneur.

45. An individual employed by an organization for remuneration based on the financial results of the organization is called
(a) Manager
(b) Entrepreneur
(c) Employer
(d) Intrapreneur
Answer:
(d) Intrapreneur.

46. Which of the following statement is not true? ‘
(a) Intrapreneur is the inside entrepreneur
(b) Not every business needs an Intrapreneur but every business needs an Entrepreneur
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer:
(b) Not every business needs an Intrapreneur but every business needs an Entrepreneur.

47. Which of the following statement is true?
(a) Entrepreneurs are found everywhere whereas intrapreneurs are to be encouraged within the organization.
(b) Intrapreneur have to face rivalry within the organization
(c) Resources are readily available to an intrapreneur
(d) All of the above.
Answer:
(d) All of the above.

48. The prime focus of an Entrepreneur is to
(a) To get traditional corporate rewards
(b) To get an independent chance and opportunity to make more money
(c) To move towards organizational and personal success
(d) None of the above.
Answer:
(b) To get an independent chance and opportunity to make more money.

49. The basic skills required for an Intrapreneur are
(a) Leadership, communication skills, planning etc.
(b) Creative, innovative, risk-taking, etc.
(c) Blend of Managerial and Entrepreneurial skills
(d) None of the above
Answer:
(c) Blend of Managerial and Entrepreneurial skills.

50. Qualities like leadership, organizing, planning etc. are the basic requirements of a
(a) Manager
(b) Employee
(c) Entrepreneur
(d) Intrapreneur
Answer:
(a) Manager.

51. A person within a large corporation who takes direct responsibility for turning an idea into profitable finished product through assertive risk-taking is called.
(a) Entrepreneur
(b) Manager
(c) Intrapreneur
(d) none of the above
Answer:
(c) Intrapreneur.

52. The practice of entrepreneurship by the employees is termed as
(a) Management
(b) Administration
(c) Intrapreneurship
(d) None of the above
Answer:
(c) Intrapreneurship.

53. The term Intrapreneurship was first coined by
(a) Gifford Pinchot
(b) Steve jobs
(c) Cantillon
(d) Taylor
Answer:
(a) Gifford Pinchot.

54. Which of the following is not a characteristic of Intrapreneurship
(a) It cultivates entrepreneurial Skills and Culture
(b) The chances of failure are high as compared to start-ups
(c) It creates wealth for the headquarters
(d) It helps in expanding the business portfolio.
Answer:
(b) The chances of failure are high as compared to startups.

55. An employee who is given the required support and resources to create new product or services is known as:
(a) Auditor
(b) Intrapreneur
(c) Entrepreneur
(d) None of the above.
Answer:
(b) Intrapreneur:
Intrapreneur refers to a person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation.
Thus, an employee who is given the required support and resources to create new products or services is known as an intrapreneur.

56. Which one of the following is not an element of entrepreneurship?
(a) Innovation
(b) Organisation skill
(c) Risk averseness
(d) Vision
Answer:
(c) Risk averseness:
Entrepreneurship is defined as the process of taking risk and earning profit. Entrepreneurship is central for enhancing the economic opportunity of nation.
Entrepreneurship involves the following key elements.

• Innovation
• Risk-taking
• Vision
• Organising skills

Hence, risk awareness is not an element of entrepreneurship.

57. What is the nature of entrepreneurship?
(a) An economic activity
(b) A cultural activity
(c) A political activity
(d) A technological process
Answer:
(a) An economic activity:
Entrepreneurship is defined as the process of making money, earning profits and increasing the wealth. While possessing characteristics such as risk-taking, management, leadership and innovation. It is a theory of evolution of economic activities. It is a continuous process of an ingredient of economic development. It creates awareness among people about economic activity and generates self-employment and additional employment.

58. The key element of entrepreneurship is:
(a) Management Skills
(b) Capital
(c) Creativity and innovation
(d) Business acquaintances
Answer:
(c) Creativity and innovation:
Entrepreneurship has been identified by the individuals as success of enterprise depending upon imagination, vision, innovation. The entrepreneur carries out “new combinations” thereby helping render old industry obsolete. Therefore, it can be said that creativity and innovation are the key elements of entrepreneurship.

59. For, being an entrepreneur, risk-bearing is:
(a) The only factor
(b) One of the factor
(c) The least factor
(d) Not a factor.
Answer:
(b) One of the factor:
Successful entrepreneurs are those who make better judgments about changes in the market and who cope up with risk and uncertainty better than these counterparts. Therefore for being entrepreneur, risk-bearing is one of the factor along with other important factors.

60. Intrapreneur faces competition from
(a) Entrepreneur
(b) Managers
(c) Employees within the organisation
(d) All of the above.
Answer:
(c) Employees within the organisation:
One of key point of difference between the entrepreneurs and intrapreneurs is that while entrepreneurs have competition with other entrepreneurs outside the organisation, entrepreneurs have competition with employees within the organisation since intrapreneur is himself one of the employees.

61. Entrepreneur is a person:
(a) Having high aptitude
(b) Who wants to work for himself
(c) Ready to bear risk for profit in new venture
(d) All of the above.
Answer:
(d) All of the above.
Entrepreneur is a person of very high aptitude who pioneers changes, possessing characteristics found in only a very small fraction of population. Anyone who wants to work for himself is considered to be an entrepreneur. To some economists, entrepreneur is one who is willing to bear the risk of a new venture, if there is a significant chance for profit.

62. According to Peter Drucker, entrepreneurship is:
(a) A science
(b) An art
(c) Both a science and an art
(d) Neither a science nor an art.
Answer:
(d) Neither a science nor an art.
According to business expert Peter Drucker “Entrepreneurship is neither a science nor an art. It is a practice. It is knowledge-based. Knowledge in entrepreneurship is a means to an end, that is by the practice”.

63. Which of the following is not true about an entrepreneur?
(a) An entrepreneur is creative, innovative and risk-taker
(b) An entrepreneur is independent
(c) An entrepreneur is not future-oriented
(d) None of the above
Answer:
(c) An entrepreneur is not future-oriented:
Entrepreneur carries out “new combinations” thereby helping under old industries obsolete. Entrepreneurship allows undertaking the activities of one’s choice and comfort which offers independence and freedom in return.

64. The risk borne by entrepreneurs is
(a) Less
(b) Extreme
(c) Moderate
(d) None of the above.
Answer:
(c) Moderate:
Entrepreneur is a person who develops and owns his enterprise. One of his traits is that he is a moderate risk taker and works under uncertainty for achieving the goal. Thus, it can be said that risk borne by entrepreneurs is moderate.

65. The word ‘Entrepreneur’ has its origin from:
(a) Latin word
(b) French word
(c) German word
(d) Indian word.
Answer:
(b) French word:
The word entrepreneur has a French origin. It was originated during the middle ages when the term entrepreneur was applied to the man in charge of the great architectural works. It is derived from the french word “entrependre” which means “to undertake.”

66. Which one of the following is not the characteristic of entrepreneurship?
(a) Innovation
(b) Organising skills
(c) Indifferent approach
(d) Risk-taking.
Answer:
(c) Indifferent approach:
Entrepreneurship in simple words is defined as process of taking risk and earning profit. Entrepreneurship involves the following key elements- innovation, risk-taking, vision and organising skill. So among the following, in different approach is not a characteristic of entrepreneur.

67. Which one of the following is true about investment cost per job?
(a) Investment costs per job are high in large and medium industries
(b) Investment costs per job are high in small scale enterprises
(c) Investment costs per job are high in micro-enterprises
(d) Investment costs per job are higher in micro-enterprises than small scale enterprises.
Answer:
(a) Investment costs per job are high in large and medium industries:
Investment cost per job are high in large and medium industries. Investment made into large and medium industries make better profit than the Other small scale enterprises. Investment refers to investment in plant and machinery of an organisation.

68. Cantillon referred entrepreneurs as one of the classes of …………………………. who are financially independent aristocrats.
(a) Landowners
(b) Employees
(c) Entrepreneurs
(d) Investors.
Answer:
(a) Landowners:
Cantillon referred entrepreneurs as one of the classes of landowners who are financially independent aristocrats. For him, individuals who purchased a good at a certain price used that good to produce a product and then sold that product at an uncertain price could be considered entrepreneurs.

69. One who with his charm establishes and manages business to take it to unimaginable heights is known as …………………………. entrepreneur.
(a) Superstar
(b) Idealist
(c) Artist
(d) Sustainer.
Answer:
(a) Superstar
There are various types of entrepreneurs, few of them are:
Superstar – These types of entrepreneur wins the heart of the people through their overwhelming personality and charisma. Idealist works on the basis of ideas formulated by him.

Artist are Creativity oriented entrepreneurs. Their business activity is centred around creativity. Sustainer maintains a proper balance between work and personal life. Hence, superstar is the one who with his claim establishes and manages business to take it to unimaginable heights.

70. ‘The entrepreneurship is essentially a creative activity or it is an innovative function” is said by —
(a) Schumpeter
(b) Kelsen
(c) Henry Maine
(d) Peter Drucker.
Answer:
(a) Schumpeter:
The given statement was said by Schumpeter –

71. A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation, is an –
(a) Intrapreneur
(b) Entrepreneur
(c) Manager
(d) Improver.
Answer:
(a) Intrapreneur:
Intrapreneurs are the one who are engaged within the confines of an organisation. They are primarily focused to be creative and to move towards organisational and personal successes. They takes responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation.

72. Which of the following is a characteristic of intrapreneurship?
X. Intrapreneurship is a risk-taking factor, which is responsible for the end result in the form of profit or loss
Y. It cultivates entrepreneurial skills
Z. Its followers are called managers.
Correct option is –
(a) X and Y
(b) Y and Z
(c) X and Z
(d) X, Y and Z.
Answer:
(b) Y and Z
Following are characteristics of intrapreneurship –

• It promotes managers to be more innovative.
• These projects are funded by large business organisations.
• Managers are motivated to accept more risk.
• Managers follow intrapreneurship.
• Chances of failure are low.
• It cultivates entrepreneurial skill.

Thus, answer is Y and Z.

73. Who among the following propounded the concept of ‘creative destructions’?
(a) Steve Jobs
(b) Albert S Humphrey
(c) Joseph Schumpeter
(d) Cantillon.
Answer:
(c) Joseph Schumpeter
Joseph Schumpeter focused how the entrepreneur’s drive for innovation and improvement which creates upheaval and change. He viewed entrepreneurship as a force of “ creative destruction”. The entrepreneurs carries out “new combinations”, thereby helping sender old industries obsolete.

74. Which of the following is feature of juggler?
(a) They have a habit of advising their customers.
(b) They are creatively oriented entrepreneurs.
(c) They believe in working hard to get the wins.
(d) They love to take chances in business.
Answer:
(d) They love to take chances in business.
A juggler means entertainer who keeps several plates, knives, balls or other objects in the air at once by tossing & catching them. The juggler entrepreneur likes the concept that the businessman gives them a chance in business to handle everything themselves.

75. Who coined the word Intrapreneurship?
(a) Gifford Pinchot
(b) Peter Drucker
(c) Steve jobs
(d) Joseph Schumpeter
Answer:
(a) Gifford Pinchot:
The word ‘intrapreneurship’ was coined by the management consultant Gifford Pinchot, author of the 1985 book entitled Intrapreneuring. Hence, option (a) is correct.

76. Which of the following is one of the key elements of entrepreneurship?
(a) Motivation
(b) Mission
(c) Innovation
(d) Supervision
Answer:
(c) Innovation:
Four key elements of Entrepreneurship are:

1. Innovation
2. Risk-taking
3. Vision
4. Organising skills.

Hence, innovation is the one of the Key elements of entrepreneurship.

77. Which type of entrepreneur is lead by charisma, charm & high energy?
(a) Superstar
(b) Fireball
(c) Juggler
(d) Hero
Answer:
(a) Superstar:
Superstar is lead by charisma, charm & high energy. An entrepreneur like this has an overwhelming personality which works in his favour, so does in the favour of business.

78. …………………. means to undertake a business activity or to start one’s own business.
(a) Intrapreneurship
(b) Entrepreneurship
(c) Leadership
(d) Both (a) & (b)
Answer:
(b) Entrepreneurship:
The word entrepreneur has a french origin. It is derived from the French word entreprendre which means to ‘undertake’. In a business context, it means to undertake a business activity or to simply start a new business.

79. The basic skills required for an intrapreneur are-
(a) Leadership, communication, planning
(b) Creativity, innovation, risk-taking
(c) Blend of managerial & entrepreneurial skill
(d) None of the above.
Answer:
(c) Blend of managerial & entrepreneurial skill:
Intrapreneurship is a combination of entrepreneurship & management skills. In simple words, intrapreneurship is the practice of entrepreneurship by employees within an organisation.
Hence, it is a blend of managerial & entrepreneurship skills.

80. The word ‘entreprendre’ means:
(a) To undertake
(b) To manage
(c) To enter into business
(d) None of these.
Answer:
(a) To undertake:
The word entrepreneur is derived from the French word “entreprendre”, which means “to undertake.”
Hence, option (a) is correct.

81. In which year the concept of the entrepreneurship was first established?
(a) 1700
(b) 1900
(c) 1990
(d) 1600
Answer:
(a) 1700
The concept of entrepreneur was first established in 1790 & the meaning was evolved ever since. Hence, option (a) is correct.

82. Cantillon referred Entrepreneurs one of the
(a) Classes of landowners
(b) Classes of employees
(c) Classes of entrepreneurs
(d) Classes of investors.
Answer:
(a) Classes of landowners:
Cantillon referred entrepreneurs as one of the classes of landowners who are financially independent aristocrats. For him, individuals who purchased a good at a certain price used that good to produce a product and then, sold that product at an uncertain price could be considered ‘entrepreneurs’.

83. What is the remuneration of Entrepreneur?
(a) Love
(b) Profit
(c) Money
(d) Interest
Answer:
(b) Profit:
Entrepreneurship is defined as the process of taking risk and earning profit. Thus profit is the remuneration of entrepreneur.

84. Which amongst the following is incorrect regarding entrepreneurship –
(a) Entrepreneurship is derived from French word ‘entreprendre’.
(b) Entrepreneurship is related with innovative thinking.
(c) Entrepreneurship is related with organising skills.
(d) Entrepreneurship is mainly related with profit-making.
Answer:
(d) Entrepreneurship is mainly related with profit-making:
Entrepreneurship involves the following key elements:

• Innovation
• Risk-Taking
• Vision
• Organising Skills

Entrepreneurship is a risk-taking factor which is responsible for the end result in the form of profit or loss. Thus, entrepreneurship is not Mainly related with profit Making.

85. The word entrepreneur is derived from the french word ……………….. .
(a) Intraprenure
(b) Entreprendre
(c) Intraprendre
(d) Entrepreneure
Answer:
(b) Entreprendre:
The word entrepreneur has a French origin. It was originated during the middle ages when the term entrepreneur was applied to the man in charge of the great architecture. It is derived from the French word “entrepreneur” which means “to undertake”.

86. Which type of entrepreneur is full of life, energy and optimism.
(a) Fireball
(b) Healer
(c) Juggler
(d) Optimiser
Answer:
(a) Fireball:
Fireball are types of entrepreneurs which are full of energy and enthusiasm but are too impulsive at times which leads to wrong decision making.

87. Which of the following statement is not true?
(a) Intrapreneur is the inside entrepreneur
(b) Not every business needs an intrapreneur but every business needs an entrepreneur
(c) Both (a) and (b)
(d) Neither (a) nor (b)
Answer:
(b) Not every business needs an intrapreneur but every business needs an entrepreneur:
Intrapreneurship is a process by which a person within the organisation takes responsibility to turn an idea into opportunity.
Intrapreneurship = Entrepreneurship + Management Thus, not every business needs an entrepreneur but every business needs an intrapreneur, Thus, option (b) is correct.

88. Which of the following is not a type of entrepreneur?
(a) Sustainer
(b) Explorer
(c) Improver
(d) Fireball
Answer:
(b) Explorer:
Following are types of entrepreneurs:

• Idealist
• Optimiser
• Hard workers
• Sustainers
• Improver
• Advisor
• Superstar
• Artiste
• Visionary
• Analyst
• Fireball
• Jugglers
• Hero
• Healer.

Thus, explorer is not a type of entrepreneur.

89. Who among the following realises his dreams?
(a) Investor
(b) Manager
(c) Entrepreneur
(d) Employee.
Answer:
(c) Entrepreneur
Normally, all the businesses are founded keeping a vision in mind. The founding members (i.e. entrepreneurs) who visualize a dream and materialize the same are known as visionary (a type of entrepreneur). These are thinkers who pursue to make their vision come true. Thus, we can say that an entrepreneur is a person who realises his dreams.

90. Generally micro-entrepreneurs operate:
(a) For their choice
(b) For their need
(c) For their luxury
(d) None applicable.
Answer:
(a) For their choice:
Micro-enterprises is considered a small business employing 10 people or less and have a capital asset less than 30,00,000. Most Micro-enterprises are family businesses employing one or more persons. These micro-entrepreneurs operate micro-enterprises by choice. Most micro-enterprises owners are primarily interested in earning a living to support themselves and their families.

91. Which of the following is not a type of entrepreneur?
(a) Villain
(b) Artiste
(c) Fireball
(d) Superstar
Answer:
(a) Villain:
Following are types of entrepreneurs:

• Idealist
• Optimiser
• Hard Workers
• Sustainers
• Improver
• Advisor
• Superstar
• Artiste
• Visionary
• Analyst
• Fireball
• Jugglers
• Hero
• Healer

Thus, Villain is not a type of entrepreneur.

92. What type of entrepreneur do not do new things?
(a) Superstar
(b) Fireball
(c) Jugglers
(d) Sustainers
Answer:
(d) Sustainers:
The sustainer type of entrepreneurs comprise of people who like to maintain a balance between work and a personal lite, they do not wish the business to grow too large where it will cut into their personal life, they do not do new things they just need enough to survive.

93. Artiste entrepreneurs are:
(a) Artist in T.V. serials
(b) Proclaim themselves to be artist
(c) Persons with creativity orientation
(d) Artist in movies.
Answer:
(c) Persons with creativity orientation:
Artistic, these are creativity oriented entrepreneurs, thus, the type of business also are those which demand huge levels of creativity such as advertising -agencies and people in the music industry.

94. Entrepreneur was distinguished from capital provider in:
(a) 17 century
(b) 18Th century
(c) 19th and 2O century
(d) Middle ages
Answer:
(a) 17 century:
The concept of entrepreneurship was established in 1700s and the meaning has evolved ever since. Various economists and philosophers termed this differently in their own unique ways.

95. The meaning of the word Entrepreneur:
(a) To manage
(b) To enter into business
(c) To undertake
(d) None of these
Answer:
(c) To undertake
The term ‘Entrepreneur’ is derived from French word, ‘entreprendre’ which means to ‘undertake’.

96. Who plays the role of innovator?
(a) Entrepreneur
(b) Retailer
(c) Professional
(d) Enterprise
Answer:
(a) Entrepreneur
The entrepreneur plays a role of an innovator who markets his innovation.

97. Entrepreneur works for:
(a) Profits
(b) Innovations
(c) Salary
(d) Remuneration
Answer:
(a) Profits:
Entrepreneur is a person who works for profit. Entrepreneurship is defined as the process of making money, earning profits and increasing the wealth.

98. What is meant by Entrepreneur?
(a) Business
(b) Risk-taking
(c) Profit
(d) All are applicable
Answer:
(d) All are applicable
Following are the characteristics of Entrepreneur:

• Risk-taking
• Management
• Leadership
• Innovation
• Profit
• Business

Thus, option (d), all the above is correct.

99. Which of the following are not considered as Entrepreneurs?
(a) Climber
(b) Hero
(c) Juggler
(d) Fireball
Answer:
(a) Climber
Following are types of Entrepreneurs:

• Idealist
• Optimiser
• Hard workers
• Jugglers
• Healer
• Sustainer
• Improver
• Advisor
• Superstar
• Artiste
• Fireball
• Analyst
• Hero

Thus, option (a) i.e. climber not a type of Entrepreneur.

100. Cantillon referred Entrepreneur as on the class of:
(a) Landowners
(b) Innovation
(c) Vision
(d) Risk-taking
Answer:
(a) Landowners
Cantillon referred entrepreneurs as one of the classes of Landowners who are financially independent aristocrats. For him, individuals who purchased a good at a certain price used that good to produce a product and then sold that product at an uncertain price could be considered entrepreneurs.

101. Which one of this following is not the characteristics of entrepreneur.
(a) Innovation
(b) Organising
(c) Indifferent approach
(d) Risk-taking
Answer:
(c) Indifferent approach:
Characteristics of Entrepreneur:

• Mental ability
• Business secrecy
• Clear objectives
• Human relation
• Communication Ability

Thus, option (c) i.e. indifferent Approach is not a characteristic of Entrepreneur.

102. Which of the following ¡s not a personality trait or characteristic common among entrepreneurs?
(a) Alert to opportunities
(b) Self-starter
(c) Short attention span
(d) Visionary
Answer:
(c) Short attention span:
Short attention span is not a personality trait or characteristic common among entrepreneurs. It means when someone is not able to listen or pay attention to their surroundings or get easily distracted.

103. Superstar Entrepreneurs are:
(a) Stars in T.V. serials
(b) Actor’s in movies
(c) Persons with charisma, charm and high energy
(d) Proclaim themselves to be a star.
Answer:
(c) Persons with charisma, charm and high energy:
Superstar entrepreneurs are person with charisma, charm and high Energy. An entrepreneur like this has an overwhelming personality which works in his favour. So does in the favour of his business.

104. Which of the following is not a type of entrepreneurs?
(a) Serial Entrepreneur
(b) Social Entrepreneur
(c) Sleeping Entrepreneur
(d) Lifestyle Entrepreneur.
Answer:
(c) Sleeping Entrepreneur:
Sleeping entrepreneur Ts not a type of entrepreneur as they do not take active part in managing the affairs as he should be idealist, optimizer, hard worker, sustainer etc. who are capable of taking substantial risk in being the owner and operator of a business.

105. A managers job is more concerned with:
(a) Exploring new opportunities for making profits
(b) Taking risk
(c) Undertaking creative pursuits
(d) Meeting deadlines set up by top management.
Answer:
(d) Meeting deadlines set up by top management:
A manager job is more concerned with meeting deadlines set up by top management. He does provide his services in an enterprise established by entrepreneurs. He is an employee and does not undertake responsibility of any risk.

106. Which of the following is not true concerning entrepreneurs and risk?
(a) They see risk differently than the general public
(b) They minimise1 risk to every extent possible
(c) They usually take high risk
(d) They define risks early in the start-up process.
Answer:
(c) They usually take high risk:
An entrepreneur is the owner of the organization and he bears all the risk and uncertainties involved in running. an organization. He is a moderate risk taker and works under, uncertainty for achieving the goal.

107. Which of the following is not a type of entrepreneur?
(a) Artiste
(b) Superstar
(c) Fireball
(d) Villain
Answer:
(d) Villain:
Types of Entrepreneurs:

• Idealist Entrepreneur
• Optimisers” Entrepreneur
• Hard Workers Entrepreneur
• Sustainers Entrepreneur
• Improvers Entrepreneur
• Advisor Entrepreneur
• Superstar Entrepreneur
• Artiste Entrepreneur
• Visionary Entrepreneur
• Analyst Entrepreneur
• Fireball Entrepreneur
• Juggler Entrepreneur
• Hero Entrepreneur
• Healer Entrepreneur.

108. Which one of the following factors does not matter for a person to become an entrepreneur?
(a) Skin Colour
(b) Education
(c) Family background
(d) Personal values
Answer:
(a) Skin Colour:
The skin colour does not matter for becoming an entrepreneur. A successful entrepreneur comes in varying sizes and colour and are of different race, caste, creed or religion.

109. The term Intrapreneurship was first coined by ………………… .
(a) Joseph Schumpeter
(b) Peter Drucker
(c) Gifford Pinchot
(d) Philip Kotler
Answer:
(c) Gifford Pinchot:
The word intrapreneur is a recently coined corporate counterpart to long-existing term entrepreneur. This word is coined by Gifford Pinchot, author of the book entitled Intrapreneuring in 1985.

110. Which of the following is not a common trait of Entrepreneur?
(a) Persistence despite failure
(b) A passion for the buyer
(c) Intolerance to ambiguity
(d) Self-Confidence.
Answer:
(a) Persistence despite failure:
Entrepreneur is one who searches for change, respond to it and exploits those changes as an opportunity. It involves in it innovation, risk-taking, vision and organizing skills but the trait which is not common is the persistence despite failure.

111. Which of the following is not a type of entrepreneurs?
(a) Serial Entrepreneur
(b) Sleeping Entrepreneur
(c) Lifestyle Entrepreneur
(d) Social Entrepreneur
Answer:
(b) Sleeping Entrepreneur:
Sleeping Entrepreneur is not a type of entrepreneur as they can be optimizer, hard workers, superstar, adviser, here or healer.

112. Which of the following factors does not affect a person for being an entrepreneur?
(a) Nationality
(b) Work History
(c) Education
(d) Personal values
Answer:
(a) Nationality:
Entrepreneurship is essentially a creative activity or it is an innovative function where motivation is one of the important factors. Thus, nationality is not a factor which affect a person in becoming the entrepreneur while education, personal values and work history can be considered for the same.

113. Which according to Joseph Schumpeter is not a vital function performed by the entrepreneur?
(a) Challenging accepted ways of doing things
(b) Revolutionising current patterns of production
(c) Creative destruction
(d) Regional development
Answer:
(d) Regional development:
Destructive creation was coined as a play on Joseph Schumpeter’s famous term “creative destruction”, which suggests that innovation leads to changes and Economic growth, challenging accepted ways of doing things and revolutionizing current pattern of production. Thus, regional development is not the factor considered in the definition by Joseph Schumpeter.

114. Analyst entrepreneurs are:
(a) Good at problem-solving
(b) Not focused
(c) Not creative
(d) Illogical
Answer:
(a) Good at problem-solving:
Analyst Entrepreneurs are experts at problem-solving techniques and making analysis which offers greater possibilities for achieving significant financial rewards.

115. Practice of entrepreneurship in an established firm is known as ……………………. .
(a) Leadership
(b) Manager Entrepreneurship
(c) Entrepreneurship
(d) Intrapreneurship
Answer:
(d) Intrapreneurship:
In simple words, the practice of entrepreneurship by the employees within an organization i.e when the manager acts as an entrepreneur is known as Intrapreneur. Hence option (d) is correct.

116. Which of the following is not a type of entrepreneur?
(a) Improver
(b) Climbers
(c) Advisor
(d) Juggler
Answer:
(b) Climbers:
Various type of Entrepreneurs are:

• Idealist
• Optimiser
• Hard worker
• Sustainer
• Improver
• Advisor
• Superstar
• Artiste
• Visionary
• Analyst
• Fireball
• Jugglers
• Hero
• Healer

117. Risk Bearing Capacity of an entrepreneur is generally:
(a) Low
(b) Conservative
(c) Extreme
(d) Moderate
Answer:
(c) Extreme:
One of the major characteristics of entrepreneur is that he has extreme capacity to bear risk.

118. Generally, micro-entrepreneur operate:
(a) For their choice
(b) For their need
(c) For their luxury
(d) None is applicable
Answer:
(a) For their choice:
Micro-Enterprise are very small enterprises and they operate as per their choice.

119. All of the following are enhancements to individual creativity except:
(a) Keeping a journal to record thoughts & ideas
(b) Allowing yourself to be creative
(c) Limiting your reading sources
(d) Enhancing your knowledge base.
Answer:
(c) Limiting your reading sources:
Limiting your reading sources is not an enhancement to individual creativity.

120. Generally, the main reason behind starting a business is:
(a) Earning profits
(b) Social science
(c) Earning name
(d) Spiritual reasons
Answer:
(a) Earning profits:
The main reason behind starting a business is earning profit.

121. The rewards for an entrepreneurial work comes in the form of ……………………….. .
(a) law
(b) wages
(c) interest
(d) profit
Answer:
(d) profit:
Profit is the return or reward of entrepreneur.

122. The word Entrepreneur’ has its original from:
(a) Latin word
(b) French word
(c) German word
(d) Indian word
Answer:
(a) Latin word:
‘Entrepreneurship’ word is derived from the french word which means enter into business with undertaking the risk. Entrepreneur is a person who undertakes the risk of whole business.

123. Expansion into new line of business is:
(a) Strength of the firm
(b) Weakness of the firm
(c) Opportunity of the firm
(d) Threat of the firm.
Answer:
(c) Opportunity of the firm:
Opportunity is also known as chance and there are so many opportunities come into the firm. Expansion into new line or increment into new line is opportunity of firm.

124. What to Achieve and by when is explained by …………………………… of an organization.
(a) Objectives
(b) Mission
(c) Strategy
(d) Vision
Answer:
(a) Objectives:
Organisation should always come into existence with some objectives and it is necessary to establish some aims for achievement otherwise organisation can not work rapidly. What to achieve, when to achieve, how to achieve is all explained by ‘objectives’ at an organisation.

125. Which of the following is not the characteristics of entrepreneurship?
(a) Innovation
(b) Organising skills
(c) Indifferent Approach
(d) Risk-Taking
Answer:
(c) Indifferent Approach:
The Characteristics of Entrepreneurship are follows:

• Innovation
• Organising Skills and Techniques
• Risk-taking
• Growth of business by Inventing new tricks and tips
• Leadership or leading or motivating to employees.
• Different Approach

Indifferent Approach is not a Characteristics of Entrepreneurship because entrepreneur thinks different in different – different situations for handling these situations.

126. Question referred entrepreneurs as one of the classes of who are financially independent aristocrat
(a) Landowners
(b) Employees
(c) Entrepreneurs
(d) Investors
Answer:
(a) Landowners:
Entrepreneurship are classified as landowners who are financially independent aristocrats or Aristocrat means Governed by one person. Entrepreneur is one who alone invests capital and alone bears loss and enjoys profits like a landowner. So, entrepreneurs come under class of landowners.

127. Analyst type of entrepreneur are:
(a) Not intelligent
(b) Not future or,anted
(c) Able to crop up the solution at not cost and less time
(d) Both (a) and (b)
Answer:
(c) Able to crop up the solution at not cost and less time:
Analyst entrepreneurs excel at problem-solving in a systematic way. They are able to crop up the solution at no cost and less time.

128. Person who has very high risk-taking capacity
(a) Entrepreneur
(b) Intrapreneur
(c) Both (a) and (b)
(d) None of these
Answer:
(a) Entrepreneur:
A person who bear higher level of risk to undertake a venture is, Entrepreneur.

129. Who conceives the idea of business:
(a) Entrepreneur
(b) Managing Director
(c) Entrepreneurship
(d) All of these
Answer:
(c) Entrepreneurship:
Entrepreneurship is equated to simply stating one’s own business. Most economists believe it is more than that. To some economists, the entrepreneur is one who is willing to bear the risk of a new venture if there is a significant chance for profit.

130. Advisor Entrepreneurs are:
(a) believe in Consumer Saverteighty
(b) believe in advising everyone
(c) believe in self-satisfaction
(d) None of these
Answer:
(a) believe in Consumer Saverteighty:
Advisor Entrepreneurs are the types of people who believe in consumer sovereignty they indulge excessively in providing customer services.

131. Which type of entrepreneurs are creativity oriented entrepreneurs?
(a) Improver
(b) Idealist
(c) Artiste
(d) Hero.
Answer:
(c) Artiste:
Artists are creativity oriented entrepreneurs. Thus, the type of business also are those which demand huge level of creativity such as – advertising agencies and people in music industry.

132. What are the key elements of entrepreneurship?
(a) Innovation
(b) Risk-taking
(c) Vision
(d) All of above.
Answer:
(a) Innovation:
Four key elements of entrepreneurship are –

1. Innovation
2. Risk-taking
3. Vision
4. Organising skills

133. Entrepreneur as ‘card owner’ is given by
(a) Peter Drucker
(b) Cantillon
(c) Alfred Marshall
(d) All
Answer:
(b) Cantillon:
Cantillon referred entrepreneurs as one of the classes of ‘landowners’ who are financially independent aristocrats.

134. Entrepreneur who is never dull.
(a) Fireball
(b) Creativity
(c) Artiste
(d) Healer
Answer:
(a) Fireball:
One who is never dull in terms of enthusiasm, energy and attitude is known as fireball.

135. Entrepreneurs mainly come into light
(a) During I world war
(b) During II world war
(c) 1700s
(d) Cold war
Answer:
(c) 1700s:
Entrepreneur come into light and was first established in the “1 700s” and the meanings has involved ever since various economists and philosophers termed this differently in their own unique way.

136. Do what you love and you will never have to work for a day in your life
(a) Confucius
(b) Napoleon Hill
(c) Maslow
(d) Peter F. Drucker
Answer:
(a) Confucius:
One of the advantages of being an entrepreneur is doing what one cove. Choose a job that you like and you will never have to work a day in your life.

CS Foundation Business Management Ethics and Entrepreneurship Notes