Short Type Questions - Entrepreneurial Opportunity, Entrepreneurship, Class 12 | Additional Study Material for Commerce PDF Download

Q1. Explain ‘Persistence’, ‘Creativity’ and ‘Taking Initiative’ as entrepreneurial competencies. (CBSE 2011, A.I.) (3 marks)
Ans. Persistence: Persistence is the ability to continue in the course of action inspite of obstacles and difficulties.
Successful entrepreneurs are determined and persistent in their march towards excellence. Creativity - It involves creative process :

Taking Initiative : Initiative is the ability to take decisions and actions without asking for help and advise of others, so it is essential for entrepreneurs to take initiative and be active and quick decision maker. It is an entrepreneur who sees opportunities and try to gain from them.

Q2. Explain ‘ability to harness different sources of knowledge and information’ and ‘vision and creativity’ as important factors involved in the process of sensing opportunities. (CBSE 2011 & 2010, (A.I) (4 marks)
Ans. Ability to harness different sources of information : Various sources like magazines, journals, books, seminars, trade shows, family members, customers, friends, etc., help in getting information that results in evolution of basic ideas, bring together various sources of information and knowledge and analyze it to the best possible extent. The analysis helps in the identification of the right opportunity to start a new business.

Vision and creativity : Creativity in innovating a solution and vision. The entrepreneur should be able to creatively identify an idea to generate a valuable solution to a problem. Once the solution is identified their vision to concert the solution into business opportunity helps them to move forward, overcoming all the obstacles.
They constantly :
(a) Overcome adversity.
(b) Exercise control over the business.
(c) Make a significant difference.

Q3. Explain the ability to perceive and preserve basic ideas as an important factor in sensing opportunities. (CBSE 2010, Delhi) (4 mark)
Ans. Ability to perceive and preserve basic ideas is an important factor in sensing opportunities. Spotting an idea often triggers the process of sensing an opportunity.
The following are the various sources which lead to the emergence of basic ideas.
(a) Problems : When a problem exists, an idea leads to a solution to resolve that problem, it emerges as a business opportunity.
(b) Change : A change in social, legal, technological aspects, etc. leads to new opportunities to start a business.
(c) Inventions : New products or services lead to new business opportunities.
(d) Competition : Competition often results in emergence of new and better ideas that result in new business opportunities.
(e) Innovation : Creating new things of value as well as new and creative processes that add value to the existing products or services. For example, computers to tablets.

Q4. Shiela after graduating from college went back to her home town in Meghalaya. It was a small town with very few job opportunities. The Karbi Tribal women in that area were uneducated but still practiced the method of obtaining traditional colours from natural wild herbs. Their most popular dye was indigo obtained from the leaf called Sibu. Using these colours they added variety to their textiles. The women were mainly confined to their homes and they did not know how to make living out of their talent. Shiela went from door to door and analyzed the problem that existed. She thought of setting up a voluntary association of Karbi women who would be able to join and leave the organization at their own without any intimation.
(a) Name the process which helped Shiela in converting an idea into an opportunity.
(b) Identify the kind of organization that Shiela has decided to set up.
(c) State any two values which Shiela wants to communicate to the society. (SQP) (3 mark)
Ans.
(a) Sensing entrepreneurial opportunities.
(b) Co-operative organization.
(c) Empowerment of women; substance of traditional craftwork.

Q5. What are the elements of business opportunity ? (4 mark)
Ans. A business opportunity has five elements which are as follows :
(i) Assured market scope.
(ii) An attractive and acceptable rate of return on investment.
(iii) Practicability of the idea.
(iv) Competence of the entrepreneur to encash it.
(v) Potential of future growth.

Q6. Which are the various stages in enterprise process diagram ? (4 mark)
Ans. The various stages in entreprise process diagram are :
(i) Opportunity spotting by analysing the needs and problems that exist in the
environment.
(ii) Evaluating the ideas received from different sources to find a creative solution.
(iii) Identifying a product or service through innovation.
(iv) Setting up a project and nurturing it to success.


Q7. What is entrepreneurship ? (3 mark)
Ans. Entrepreneurship is the function which involves grabing an opportunity, organising the resources and undertaking the production and other activities. It is a systematic purposeful and creative activity of identifying a field, mobilising resources, organising production with a view to deliver value (goods or services) for customers, return for investment and profit for self bearing some risk and uncertainities.

Q8. Differentiate between an employee and an entrepreneur ? (4 mark)
Ans.


Q9. What are the different forms of innovation ?
Ans. Innovation can be in different forms such as :
(a) Application of new method of production.
(b) Introducing the product with which consumers are not familiar.
(c) Using new sources of raw materials.
(d) Exploiting new market.
(e) New methods of distribution.

Q10. What are the different tasks which an entrepreneur must undertake as an innovator ? (4 mark)
Ans. As an innovator, an entrepreneur must :
(a) Engage in doing things in a new and better way.
(b) Be able to make decisions under uncertain conditions.
(c) Take actions with unknown and unpredicatable results.
(d) Be able to grab the opportunity for introducing the new technique or new product or
exploring new market.
(e) He must explore new markets and re-organise the enterprise.

Q11. With a diagram only explain the elements in the innovation process.
Ans.
Elements in the Innovation Process:
Analytical Planning.
Organising Resources.
Implementation.
Commercial Application.