Test: Entrepreneurship - Concept and Functions - CUET Commerce MCQ

The innovative entrepreneur would have lost much of his personal stake in the initial research itself, making him face the resource crunch at the implementation stage. He is also a relatively an unknown entity in the market place. So, he would face issues in raising the seed capital.

Second Generation Entrepreneurs are supposed to control and run the business established by their parents, but their activities and decisions are always under examination. They join the business as middle or top-level management, and after showcasing their potential, the reins of the business are handed over to them.

TRAITS OF AN ENTREPRENEUR:

• He is a person who develops and owns his own enterprise.
• He is a moderate risk-taker and works under uncertainty for achieving the goal.
• He is innovative.
• He peruses the deviant pursuits.
• He reflects strong urge to be independent.
• He persistently tries to do something better.
• He is dissatisfied with routine activities.
• He is prepared to withstand the hard life.
• He is determined but patient.
• He exhibits a sense of leadership.
• He also exhibits a sense of competitiveness.
• He takes personnel's responsibility.
• He is oriented towards the future.
• He tends to persist in the face of adversity.
• He converts a situation into opportunity.

David McClelland developed the motivation theory. He states that each and every human being is driven by three main driving motivators, which arise from the needs for achievement, power, and affiliation, and these three needs are commonly abbreviated as 'n Ach', 'nPow', and 'n Aff', respectively. These motivators can be acquired and are not inherent.

Drone entrepreneurs are the ones who refuse to copy or use opportunities that come their way. They are conventional in their approach. They are not ready to make changes in their existing production methods even if they suffer losses. They resist changes. They may be termed as laggards.

Entrepreneurs identify business opportunities and assemble the resources and capabilities needed to create value. Entrepreneurs are both owners and managers of the business, so they are more likely to take calculated risks to pursue business opportunities. Entrepreneurs have the capability and motivation to pursue innovative commercial opportunities that are riskier and more radical than normal. Hence, option 2 is the right answer.

Society's support is critical in providing both motivation and public support. A major factor in the development of this societal approval is the media. The media plays a powerful and constructive role by reporting on the general entrepreneurial spirit in the country highlighting specific success cases of this spirit in operation. Individuals are being encouraged to form new businesses and are being provided government support as tax incentives, buildings, roads, and a communication system to facilitate this creation process.

The entrepreneurs do not follow external locus of control because external locus of control generally believes that their successes or failures result from external factors beyond their control, such as luck, fate, circumstance, injustice, bias, or teachers who are unfair, prejudiced, or unskilled.

An entrepreneur is a person who makes money by starting or running businesses, especially when this involves taking financial risks. Entrepreneurship involves various activities, such as identifying opportunities, gathering resources, organizing and managing business operations, and adapting to changing market conditions. Not all entrepreneurs necessarily invent new products or services.

Business ethics can be defined as a set of moral rules and principles to protect the interest of customers, employers, society, business unit itself and the industry as a whole. It comprises the obligations the businesses must assume to maximise their positive impact and minimise their negative impact on society.

Maslow, a psychologist, developed a theory of motivation based on the human needs arranged in a particular order from lower to higher, and it covers all the above mentioned needs. There are five levels in Maslow's pyramid. From the bottom of the hierarchy upwards, the needs are: physiological (food and clothing), safety (job security), love and belonging needs (friendship), esteem, and self-actualisation.

Intrapreneurship is regarded as a semi-autonomous group operating within the overarching structure of the parent organisation. It allows innovation and entrepreneurial practices to be weaved into day-to-day processes, by adopting best practices and improving internal responsiveness. It enhances organisational growth, internal performance and profitability.

The necessity of entrepreneurship for production was first formally recognized by Alfred Marshall in 1890. In his famous treatise Principles of Economics, Marshall asserts that there are four factors of production: land, labor, capital, and organization.

The National Entrepreneurship Development Board (NEDB) is the apex body for determining policies in respect of entrepreneurship development in the country. The main objective of the National Entrepreneurship Development Board (NEDB) is promotion of entrepreneurship for encouraging self-employment in small scale industries and small businesses.

Richard Cantillion first introduced the term 'entrepreneur'. According to Richard Cantillon, an entrepreneur is a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.