Test: Entrepreneurial Opportunities- 2 - Commerce MCQ

• The quest to plug the proliferation of plastic has inspired a coterie of entrepreneurs to look for eco-friendly alternatives. From nutritious edible cutlery to handmade paper bags, these innovators have set the pace for a more sustainable future.
• Joining the ranks of nature's crusaders is a 25-year-old native from Mangalore who has designed an ingenious substitute for the ubiquitous plastic bags - one that can be deceptive at first glance.
• "It looks exactly like a plastic bag, but is anything but that," claims Ashwath Hegde, who founded EnviGreen Biotech in August last year. "Made with natural starch and vegetable derivatives, it is completely biodegradable," he adds.
• Demonstrating the product's credibility, Hegde submerges it in warm water as it begins to dissipate - contrary to plastic bags that do not react this way since it contains chemical additives.

• The overall home furniture rental is not expected to grow in the next 5 years, it is still a profitable industry. It is notable that the 2 biggest players in this industry closed down about 10% of their retail stores in the past few years.
• The furniture industry is growing and so are its 2 market leaders.  The furniture rental industry has less revenue, less profit and have far fewer businesses in the U.S. than retailers in the furniture store industry.

Think Trend: Thinking with a tendency toward or centering on a particular idea with a particular affect.
Packaging fresh fruits and vegetables is one of the more important steps in the long and complicated journey from grower to consumer. Bags, crates, hampers, baskets, cartons, bulk bins, and palletized containers are convenient containers for handling, transporting, and marketing fresh produce.

Correct Match with their examples are:

Correct Match is:

Correct Match is:

True, Business opportunities are related with feasible possible projects. 
Five Conditions That Make a Business Opportunity Feasible:
1. Real demand: The first condition that makes a business opportunity viable is market demand. Your business idea or opportunity must have real market demand. Your business opportunity must either satisfy a need or solve a problem.
2. Good return on investment: The next condition that makes a business opportunity feasible is the ROI. Any business opportunity you intend to pursue must show a strong possibility of yielding a good return on investment. Moreover, all a business is meant to do is to either satisfy a need or solve a problem for a profit.
3. Competitive: The third condition that makes a business opportunity feasible is its competitiveness. Except your business idea is the first of its kind, there is bound to be competition. If your business idea or opportunity is not competitive, just forget it because it will never stand a chance.
4. Meet the objectives of the entrepreneur: This point is very clear and easy to understand. Before ever starting a business, there are certain aims and objectives you intend to achieve using that business as leverage. For a business opportunity to be viable, it must meet your objective.
5. The competence of the entrepreneur and his team: Lastly, the most important factor that makes a business opportunity worth pursuing is the competence of the entrepreneur and his business management team. A business opportunity will only be feasible if it is backed by a strong business team. I say this because I have seen good and solid business opportunities fail to break through because of the incompetence of the team.

Two Main Problems Solving Models:

• Adaptive model: The first and more conservative approach an entrepreneur may use to solve problems is the adaptive model. The adaptive model seeks solutions for problems in ways that are tested and known to be effective. An adaptive model accepts the problem definition and is concerned with resolving problems rather than finding them. This approach seeks greater efficiency while aiming at continuity and stability. The
• Innovative model: The second and more creative approach is the innovative model of entrepreneurial problem solving, which uses techniques that are unknown to the market and that bring advantage to an organization. An innovative problem-solving style challenges the problem definition, discovers problems and avenues for their solutions, and questions existing assumptions—in a nutshell, it does things differently. It uses outside-the-box thinking and searches for novel solutions.

To sense an entrepreneurial opportunity, an entrepreneur employs his sharpened skills of observation, analysis and synthesis to identify an opening.
The most important factors involved in the process are:
(i) Ability to perceive and preserve basic ideas which could be used commercially.
(ii) Ability to harness different sources of information.
(iii) Vision and creativity.

False, because when demand for a good goes up, so does the price. This is because when people really want something, they may be willing to pay more for it. A seller will raise the price of a good if they think they can still sell the good and it will potentially make them more profit. 

Environmental Scanning:

• In any business organization, there is an internal and external environment. They comprise all the factors that can affect the business of a company in any way. And they also present opportunities for the business to grow and threats that may harm the business. So these environments need constant monitoring. This is where environmental scanning comes into the picture.
• Environmental scanning meaning is the gathering of information from an organization's internal and external environments, and careful monitoring of these environments to identify future threats and opportunities. It is the analysis of all factors that may affect the future of the organization.
• Now that we know the environmental scanning meaning, let us see the purpose. The purpose of this process of environmental scanning is to provide the entrepreneur with a roadmap to the changes likely to happen in the future. So this way they can adapt the business to overcome the threats and capitalize on the opportunities coming their way.

True, because Motivation is a condition inside us that desires a change, either in the self or the environment. Whereas, Psychological needs for autonomy, mastery, and belonging direct our behaviour in much the same way. As do the needs for achievement, power, closure, meaning, and self-esteem.

Weights and Measures the long-established body of law which relates to weighing and measuring. It mainly provides protection to the public and protection for honest traders from loss of custom to the dishonest. Such legislation will normally approve a particular system of weights and measures and outlaw others. This may change over time as when the UK moved from the pound avoirdupois to the kilogram, from the gallon to the litre. Now enforced by trading standards departments.

Environmental scanning is the acquisition and use of information about events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action. Depending on the organization's beliefs about environmental analyzability and the extent that it intrudes into the environment to understand it, four modes of scanning may be differentiated: undirected viewing, conditioned viewing, enacting and searching. We analyze each mode of scanning by examining its characteristic information needs, information seeking, and information use behaviours. In addition, we analyze organizational learning processes by considering the sense making, knowledge creating and decision making processes at work in each mode.

• Standard of living is the level of income, comforts and services available, generally applied to a society or location, rather than to an individual. Standard of living is relevant because it is considered to contribute to an individual's quality of life.
• Standard of living is a measure of the prosperity of, and quality of, life in a country. Various economic and noneconomic factors affect a nation's standard of living, including income, healthcare, education, housing, crime rates, environmental health, social services, and political and social freedoms.

• Long term refers to the extended period of time that an asset is held. Depending on the type of security, a long-term asset can be held for as little as one year or for as long as 30 years or more.
• A compelling and clear goal provides exceptional motivation and a transparent pathway to the future. Setting the long-term goal makes it possible for the business owner to work backwards, creating a real roadmap to get there. Business owners that don't do this tend to focus on what's next.

• Innovation is about the process and organisation needed to generate ideas in any context.” The ability to innovate in this sense isn't just a vital component of a thriving business, but can be seen as an essential aspect of entrepreneurship itself.
• Innovation enhances the nature, creativity, and design thinking process of a brand. A new business can attain the height of success by learning the steps of creativeness.
• Innovation in Entrepreneurship can open the doors of various opportunities by helping the business to keep up with the current trends.

The given diagram shows how the process of a basic idea becoming an opportunity:

The above given diagram explains that it is just a process of conversion of basic idea into opportunity. Business idea arises from an opportunity in the market. It originates from any need or wants of any product or services that an entrepreneur can identify. In this process all basic ideas have to undergo a vigorous process of close examination, evaluation, analysis and synthesis to become viable opportunities. This diagram explains an entrepreneur utilize the skills, knowledge, creative thinking and competency needed to develop an idea which is backed up by various political economical, social, technological, ecological and legal factors in the existing competitive market. By this process an entrepreneur convert ideas into viable business opportunities.

Natural resources: Ideas can be generated based on natural resources. A product/service may be desired from forest resources, agriculture, horticulture, mineral marine, or aqua mineral, animal husbandry, wind, sun and human resources. A further exercise with a field may generate many useful products ideas.
For example: If we are getting ideas in the field of forest resources, we think wood-based product, bio-fertilizers, etc. Solar energy is used for many purposes like cooking, electricity consumption and water heater.

• Market research is the way in which Product Managers gather information about customer needs and market drivers. Competitive analysis is a subset of market research.
• Market research is the way in which Product Managers gather information about customer needs and market drivers.
• The six factors of competitive advantage are quality, price, location, selection, service and speed/turnaround.