Students get through the TN Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship which is useful for their exam preparation.

TN State Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship

Very short answer questions

Question 1.
What do you mean by entrepreneurship?
Answer:

  1. Entrepreneurship generates employment opportunities for many people besides providing self-employment to the entrepreneur.
  2. The business ventures started triggers a variety of economic activities like purchasing raw material, creating employment opportunities, and so on.
  3. Entrepreneurship becomes crucial for the overall economic development of a nation.

Question 2.
State the classification of an entrepreneur.
Answer:
Entrepreneurs are broadly classified into three groups namely

  1. Risk bearer,
  2. Organizer and
  3. Innovator.

TN Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship

Question 3.
Define manager.
Answer:

  1. The very motive of a manager is to render service in an entity set up for execution of venture.
  2. The manager is a salaried employee.
  3. The manager doesn’t bear any risk in the venture.

Question 4.
Explain planning in the function of management.
Answer:
Under planning, the entrepreneur has to lay down the objectives, goals, vision missions, policies, procedures, programs, budget, etc., for enabling the venture to proceed towards established destinations.

Question 5.
Mention a few associations that are promoting women’s entrepreneurship in India.
Answer:

  1. Self Help Group (SHG)
  2. Federation of Indian Women Entrepreneurs (FIWE)
  3. Women India Trust (WIT)
  4. Self Employed Women’s Association (SEWA)
  5. Women Entrepreneurs Promotion Association (WEPA)

Question 6.
Define the term marketing mix.
Answer:
The term marketing mix denotes the combination of four components namely product, price, promotion, physical distribution, in the case of physical product and three more components are included in the case of service products namely people, process, and physical evidence.

Question 7.
In what way knight describe an entrepreneur?
Answer:
Knight describes an entrepreneur to be an economic functionary who undertakes the risk of uncertainty that cannot be insured or capitalized or salaried. In nutshell, the entrepreneur is described to be a risk-taker.

TN Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship

Question 8.
What are the training schemes implemented by the Government of India for promoting the self-employment of women?
Answer:

  1. Support for Training and Employment Programme of women (STEP)
  2. Small Industry Service Institutions
  3. National Small industries corporations
  4. District Industrial Centers
  5. Development of Women and Children in Rural Areas (DWCRA)

Short answer questions

Question 1.
Entrepreneurs as an innovator- explain.
Answer:
Joseph A. Schumpeter in the year 1934 used innovation as a criterion to define an individual as an entrepreneur. According to him, the entrepreneur is one who

  1. Introduces a brand new product in the market
  2. Institutes new technology to produce a product
  3. Discovers new course of supply of raw materials
  4. Puts in place a new form of organization by establishing a monopoly.

Question 2.
How to mobilize capital by an entrepreneur?
Answer:

  1. The entrepreneur has to estimate the fixed capital and working capital required for running the project.
  2. So he has to initiate steps to build funds from various channels like own funds, browsing from close circles, banks, financial institutions, issue of shares and debentures, term loans, and so on to finance his fixed capital requirement.
  3. Entrepreneurs have to take steps to mobilize the capital needed to implement the venture.

Question 3.
What are the steps involved in control functions?
Answer:

  1. Fixing performance standards.
  2. Measuring the actual performance.
  3. Comparing actual performance with standards.
  4. Finding out causes for deviation if any, undertaking corrective measures – to bring actual performance to standards set.

TN Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship

Long answer questions

Question 1.
Explain briefly the importance of entrepreneurship.
Answer:
Entrepreneurship plays a pivotal role in the economic development of a country.
The following points are the importance of entrepreneurship:

  1. Innovation: Entrepreneurship and innovations are closely intertwined with each other. They bring about innovation by building a brand new product or upgrading existing products in a new territory or by inventing new technology.
  2. Contribution to gross domestic product(GDP): Promotion of entrepreneurship all across the country would undoubtedly add to the gross domestic product and national income of a country.
  3. Balanced regional development: Encouragement of entrepreneurship is underdeveloped and undeveloped regions of a country through various incentives and concessions is more likely to promote balanced regional development across the country.
  4. Export promotion: If entrepreneurship is encouraged to produce export-oriented goods, it can significantly add to the foreign exchange reserve of a country.
  5. Reduction of concentration of economic power in few hands:
    Promotion of entrepreneurship by encouraging small, medium, and micro enterprises prevents the concentration of economic power in the hands of few large entrepreneurs.
  6. Better standard of living: Entrepreneurs provide a lot of well-being measures to their employees besides paying salaries and wages. A higher standard of living brought about by entrepreneurship narrows down the gap between the haves and have nots

Question 2.
Explain non-financial support to the women entrepreneurs.
Answer:
Women entrepreneurs are provided with the following non-financial support.

  1. Putting in policies regulations and legal structures suitable to women entrepreneurs.
  2. Financial counseling and training
  3. Business advisory service
  4. Handling legal barriers
  5. Establishing commercial linkages
  6. Client researches
  7. Profitability and efficiency analysis
  8. Low rate of interest
  9. Collateral free loans
  10. Simplified processing system
  11. Flexible repayment system based on business nature.
  12. Offering and designing the products based on their needs.

TN Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship

Multiple-choice questions

1. The person who establishes business is termed as:
(a) Entrepreneurs
(b) Risk
(c) Hard work
(d) Leadership
Answer:
(a) Entrepreneurs

2. Entrepreneur is described to be an:
(a) Distributor
(b) Purchaser
(c) Organizer
(d) None
Answer:
(c) Organizer

3. In which year, Joseph A. Schumpter used innovation to define an individual as an entrepreneur:
(a) 1935
(b) 1934
(c) 1932
(d) 1937
Answer:
(b) 1934

4. According to J.A. Schumpter, an entrepreneur is one who innovates:
(a) Discover new products
(b) New technology
(c) New enterprise
(d) All the above
Answer:
(d) All the above

5. Entrepreneur should have in order to achieve goals in the business.
(a) Self-confident
(b) Frustrations
(c) Opportunities
(d) Efforts
Answer:
(a) Self-confident

TN Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship

6. ……….. has to take timely and correct decision with regard to business.
(a) Entrepreneur
(b) Planning
(c) Promotion
(d) Coordination
Answer:
(a) Entrepreneur

7. ……….. is an employee.
(a) Entrepreneur
(b) Intrapreneur
(c) Manager
(d) None
Answer:
(b) Intrapreneur

8. ………. narrows down the gap between the haves and have nots.
(a) Resources
(b) Entrepreneurship
(c) Economic power
(d) Risk
Answer:
(b) Entrepreneurship

9. ……….. does not bear any risk in the venture.
(a) Intrapreneur
(b) Entrepreneur
(c) Manager
(d) Enterprise
Answer:
(c) Manager

10. Find out the organization is promoting women’s entrepreneurship in India.
(a) SGH
(b) FIWE
(c) SEWA
(d) All the above
Answer:
(d) All the above

11. In which year Government of India has introduced national skill development policy:
(a) 2000
(b) 2004
(c) 2006
(d) 2009
Answer:
(d) 2009

TN Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship

12. Find out the problem of women entrepreneurs:
(a) Finance
(b) Education
(c) Sensitivity
(d) All the above
Answer:
(d) All the above

13. ………. help entrepreneur to achieve objectives formulated within a period of time.
(a) Business plan
(b) Funds
(c) Materials
(d) Factors
Answer:
(a) Business plan

14. The entrepreneur has to organize the following functions relate to human resource:
(a) Recruitment
(b) Selecting
(c) Training
(d) All the above
Answer:
(d) All the above

TN Board 12th Commerce Important Questions Chapter 23 Elements of Entrepreneurship

15. Which one is the marketing aspect as follows?
(a) Pricing
(b) Funds
(c) Size
(d) None
Answer:
(a) Pricing