Entrepreneurship Development Unit I Two Mark Questions
Entrepreneurship Development Unit I Two Mark Questions
Entrepreneurship Development Unit I Two Mark Questions
UNIT I
Ans:-The term “entrepreneur” is derived from the French word entreprendre which means, “to
undertake” i.e., the person who undertakes the risk of new enterprise.
Ans:-Such entrepreneurs introduce new goods or new methods of production or discover new
markets or reorganize their organizations. Entrepreneurs in this group are characterized by an
aggressive assemblage of information for trying out a novel combination of factors. Such
entrepreneurs can do well only when a certain level of development has already been achieved;
they look forward to improving upon the past.
(iii)Fabian Entrepreneur
(iv)Drone Entrepreneur
(ii)Decision Making
(iii)Risk Taking
(iv)Dynamic Process
(v)Skilful Management
(vi)Purposeful Activity
(vii)Accepting Challenges
(viii)Building Organisation
(ix)Gap Filling Function
(x)Innovation
(xi)Mobilisation of Resources
(ii)Labour
(iii)Raw Materials
2. Non-Economic Barriers:
(i)Social Barriers:
(a)Emotional Block
(ii)Personal Barriers
(iv)Knowledge of Law
(v)Knowledge of Finance
(ii)Leadership Skills
(iv)Interpersonal Skills
(v)Communication Skills
(vi)Problem-Solving Skills
(vii)Technical Skills
(viii)Marketing Skills
(ix)Selling Skills
(x)Decision-Making Skills
(xi)Financial Skills
1. Give the characteristics of successful entrepreneurs along with their types. 2. Bring out
the concept of entrepreneurship. Explain the stages in entrepreneurial process in detail.
3. Explain the role of entrepreneurship in economic development. What are the barriers to
entrepreneurship?
4. Discuss the awareness, assessment and development of entrepreneurial competencies. 5.
Discuss Entrepreneurship as a Career. What are the factors favouring entrepreneurship as a
career option?
UNIT II
(iii)Large-Scale Operations
(iv)Integration of Economics
5.Explain exporting.
Ans:-Exporting is the most traditional mode of entering the foreign market. Exporting is that
which allows manufacturing operations to be concentrated in a single location, which may lead
to scale economies.
6.What is licensing?
Ans:-Under a licensing agreement, an entrepreneur (the licensor) grants rights to intangible
property to another company (the licensee) for a specified period; in exchange, the licensee
ordinarily pays royalty to the licensor.
(ii)Political-Legal Environment
(iii)Cultural Environment
(iv)Technological Environment
(vii)Entrepreneurial Culture
(ii)Profitability
(iii)Promotional Activities
(iv)Marketing Assistance
⮚ Discuss the factors affecting business environment. State the importance of business
environment.
⮚ What is the need for entrepreneurship development? Explain the role of family and
society in entrepreneurship development.
⮚ Bring out the role and methods of entrepreneurial development training. ⮚
Describe the industrial policies and regulations for entrepreneurship development. ⮚
What is international business? Explain the importance of international business.
UNIT III
Ans:-Every new business, new product or service, and new marketing approach has started with
an idea. Generating new ideas can be a very burdensome task. Putting them into practice can be
much harder. Business ideas are all around you.
Ans:-The terms creativity and innovation are often used to mean the same thing, but each has a
unique connotation. Creativity is the ability to bring something new into existence. Innovation is
the process of doing new things.
Ans:-A pre-feasibility study examines “whether the business meets minimum financial
requirements, whether or not there is a market for the finished product and whether it is
technically feasible”.
Ans:- (i)It must suggest as high an overall ‘rating’ as possible of the venture’s product
development and team sophistication.
(ii)It must contain believable financial projections, with the key data explained and
Ans:-A business started by only one person is called sole proprietorship. The business started by
a group of persons can be a partnership firm, cooperatives or Joint Stock Company.
(iii)Large Funds
(iv)Corporate Image
(ii)Product characteristics, i.e., the specifications, uses and applications, standards, quality, etc.
(iii)Market position and trends, i.e., the installed capacity, production and anticipated demand,
export prospects and information on import and export, price structure and trends.
⮚ Explain the process of idea generation. Also discuss the transformation of ideas into
opportunities.
⮚ Describe the steps of pre-feasibility study. Also mention the types of pre-feasibility
report.
⮚ Elaborate the components for writing a business plan. Give the essential requirements of
developing business plan.
⮚ Write notes on:
(i)Sole proprietorship.
(ii)Partnership.
⮚ Explain the process and techniques of project evaluation.
UNIT IV
Ans:-The word mobilisation means setting into motion or movement, bringing into circulation,
etc. Resources, as we know, denote assets. Out of the various types of resources, human
resources, material resources, financial resources, etc.
Ans:-According to 1995 Finance Bill, “Venture capital is defined as long-term equity investment
in novel technology based projects with display potential for significant growth and financial
return.”
Ans:-It refers to the placements of departments, workgroups within departments, work stations,
machines and so on. Layout depends on the process structure employed and the technology used.
A good layout ensures better flow of work, materials, persons and information.
Ans:-Capacity planning is a strategic decision that establishes a firm’s overall level of resources.
The decisions are strategic, because they often commit the resources of the organisation for long
periods.
Ans:-Segmenting the market, selecting or developing a niche within a target market, and
establishing a unique position in the target market. An important question that will help in
pinpoint the market and determine how to attract customers in that market.
Ans:-A distribution channel or marketing channel or channel of distribution is defined as the path
or route along which goods move from producers or manufacturers to ultimate consumers or
industrial users.
Ans:-Once a product is developed, effectively product launch becomes the critical step to its
success. Product placement and commercialisation of a product is more than following a simple
checklist.
Ans:-Growth is crucial for entrepreneurial success. Growth is one of the factors that distinguish
the entrepreneurial venture from a small business venture.
UNIT V
Ans:-It is the process of dividing work into convenient tasks or duties, of grouping such duties in
the form of posts, of delegating authority to each so that work is carried out asplanned.
Organisation contributes to the efficiency of the enterprises.
3.Explain controlling.
Ans:-After the other elements are in place, a manager’s job is not finished. He needs to
continuously check results against goals and take any corrective actions necessary to make sure
that his area’s plans remain on track.
4.Define monitoring.
Ans:-A sick unit is that unit which fails to generate an internal surplus on a continuous basis and
depends for its survival upon frequent infusionof external funds.
Ans:- (i)Continuous decline in gross output compared to the previous two financial years.
(ii)Delay by more than 12 months in repayment of loan taken from institutional sources.
(iii)Erosion in the net worth to the extend of 50 per cent of the net worthduring the previous
year.
Ans:-A project that had one sick would have already swallowed huge scarce resources. In order
to utilize the assets and infrastructure already created for the project, the project is to be revived
from sickness.
9.What is technical appraisal?
Ans:-Study the manufacturing process used by the unit. Ascertain if any new process has since
been developed.
Ans:-Commercial failure of a project will be mainly due to problems relating to the product itself
viz., defects/imperfections in product design which may lead to consumer resistance.