Practice Questions: Entrepreneurial Skills | Artificial Intelligence (AI) for Class 9 PDF Download

Q1: Which of the following is NOT a type of business based on sector?
(a) Primary sector
(b) Secondary sector
(c) Hybrid sector
(d) Tertiary sector

Ans: (c) Hybrid sector
Hybrid is a type of business model, not a sector. The main sectors are primary, secondary, and tertiary.

Q2: A merchandising business involves:
(a) Manufacturing raw materials into finished goods
(b) Providing services such as consultancy or cleaning
(c) Buying and reselling finished goods to customers
(d) Extracting raw materials from nature

Ans: (c) Buying and reselling finished goods to customers
Merchandising businesses buy products and resell them to consumers, like supermarkets or clothing stores.

Q3: In which phase of entrepreneurship development are activities like funding and licensing support provided?
(a) Stimulatory phase
(b) Support phase
(c) Sustenance phase
(d) Growth phase

Ans: (b) Support phase
The support phase includes helping startups with licensing, funding, business registration, and mentoring.

Q4: Which of the following is a feature of business?
(a) Fixed income
(b) No risk involved
(c) Regular transactions
(d) Only one-time sales

Ans: (c) Regular transactions
A business involves regular dealings with customers. One-time activities are not considered businesses.

Q5: What is the maximum turnover for a micro enterprise?
(a) INR 1 crore
(b) INR 5 crores
(c) INR 10 crores
(d) INR 50 crores

Ans: (b) INR 5 crores
Micro enterprises must have investment ≤ INR 1 crore and turnover ≤ INR 5 crores.

Q6: Which of these is a challenge faced in entrepreneurship development?
(a) High literacy rate
(b) Adequate infrastructure
(c) Lack of motivation
(d) Government support

Ans: (c) Lack of motivation
One of the key challenges is the lack of continued motivation among aspiring entrepreneurs.

Q7: Which legal form of business makes the owner personally liable for all debts?
(a) Company
(b) Partnership
(c) Sole proprietorship
(d) Limited Liability Partnership

Ans: (c) Sole proprietorship
In sole proprietorship, the owner and business are not separate, so the owner is personally liable.

Q8: Which of the following is NOT an objective of entrepreneurship development?
(a) Developing motivational needs
(b) Providing tax benefits
(c) Reducing competition
(d) Assisting with business planning

Ans: (c) Reducing competition
Entrepreneurship development encourages more enterprises; it doesn’t aim to reduce competition.

Q9: The ability to take calculated risks is an essential characteristic of:
(a) Capital
(b) Innovation
(c) Entrepreneurship
(d) Employment

Ans: (c) Entrepreneurship
Risk-bearing is a core feature of entrepreneurship. Entrepreneurs take risks to implement new ideas.

Q10: Which reward of entrepreneurship involves giving customers better options and improving lifestyles?
(a) Wealth distribution
(b) Employment generation
(c) Improved standard of living
(d) Capital formation

Ans: (c) Improved standard of living
Entrepreneurship increases choices and access to better products and services, improving quality of life.