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

Q1. Explain ‘Brain-storming’ and ‘Doing market-research’ as sources of generation of ideas. (CBSE 2012 Comptt., 2010 O.D.) (2 marks)
Ans. Brain-storming : A group of persons sit together and generate a number of business ideas by innovating alternative ways of meeting the needs and solving problems.
Doing Market Research : A systematic and in-depth study is undertaken to obtain useful data to determine demand-supply position for a particular product or service that is already available in the market.

Q2. Briefly explain the stages of creative process. (CBSE Comptt. 2010, CBSE Textbook SQP) (4 marks)
Ans. Creative process includes :
(i) Idea Germination : It is the first stage. The exact manner of germination of idea is not fixed. It takes place according to the interest and curiosity of the entrepreneur.
(ii) Preparation : One seed of curiosity has taken the form of an idea, the individual starts looking for answers.
If the idea relates to a new product or service the person needs to go in for market research.
(iii) Incubation : This is the period of assimilation. The idea or the various extensions of the idea which may have evolved become a part of the subconscious intellect.
(iv) Illumination : The fourth stage of illumination occurs when the idea resurfaces in a realistic way and the individual comes up with a viable plan.
(v) Verification : This stage deals with efforts to translate and illuminate idea into a verified, realistic and beneficial application. This stage refines knowledge into application. This stage provides the viable ideas to the enterpreneurs.

Q3. Explain any three sources from which basic ideas emerge. (CBSE 2008 Delhi) (3 marks)
Ans. Basic ideas emerge from such sources :
(i) Natural resources : Ideas can be generated based on natural resources. A product or service may be desired from forest resources.
(ii) Existing product or services : There is a constant and consistent effort on the part of all entrepreneurs to improve the products and services already in the market. When black & white computer screen came into use, immediately entrepreneurs started thinking of introducing colour monitors.
(iii) Market driven or demand driven ideas : We have already seen that one important method for generating ideas is to carry out a market research.

Q4. List any six problems faced by first generation entrepreneurs. (CBSE 2008 Delhi) (3 marks)
Ans. Problems faced by first generation entrepreneurs are :
(i) Technical.
(ii) Market.
(iii) Project identification.
(iv) Marketing.
(v) Financial.
(vi) Personal department.

Q5. Why should an entrepreneur be keen and alert ? (4 marks)
Ans. As a risk-taker, an entrepreneur should be keen and have open mind to took for opportunities and generate business ideas. He should be a keen listener. He has to create a culture of listening to people so that he will be able to find out the taste, preferences, needs and problems of the people around him. By his keen interest and alertness he can control on this ventures and face the competition present in the market and ensure that any threats will not cause any problem in the enterprise.

Q6. How are idea fields useful in generation of ideas ? (3 marks)
Ans. The process of generation of idea can be streamlined by developing an awareness for different ‘idea fields’. This will help and will be useful for an entrepreneur in enlarging the scope of thinking and structuring the ideas according to convenient frames of reference. Thus, ideas fields can be useful as a reference for streamlining the process of generation of ideas.

Q7. What is Trading ? What advantages does it possess over manufacturing ? ( CBSE 2004, A. I.) (4 marks)
Ans. Trading is buying and selling of goods and services to consumers at profit. The main advantages of trading over other type of manufacturing are :
(i) It is easier to launch.
(ii) It is less risky.
(iii) It involves less problems.
(iv) Trading helps us to manage high profits.

Q8. What do you mean by service sector ideas ? (CBSE 2004, A. I.) (3 marks)
Ans. It is a system of supplying and providing serivces. It gives the linkages to different business activities of an enterprise with the purpose of establishing and satisfying day-to-day needs. For example, we can think of various service based units like transport, maintenance, catering, etc. and can have ideas about linkage with commercial establishments-printing, courier service, advertisement, etc.

Q9. What is inventive entrepreneurship ? (3 marks)
Ans. Apart from applying creativity to spot and harness opportunities, creative efforts can also be applied to develop new products and services. Such a function is called inventive entrepreneurship.

Q10. How is market survey useful to an entrepreneur ? (4 marks)
Ans. Market survey is systematic and in-depth study that is undertaken to obtain useful data to determine demand-supply position for a particular product or service that is already available in the market. It is useful for an entrepreneur because before starting a new venture an entrepreneur must have a full and detailed information and survey of market to know about need and demand of the consumers. The existing competition present in such research helps in getting new ideas, new techniques to be used for an existing product and future aspect of the product in the market.

Q11. Enlist the various sources which lead to the emergence of basic ideas. (TBQ) (3 marks)
Ans.
(1) Natural sources,
(2) Existing products or services,
(3) Trading Related,
(4) Creative efforts,
(5) Service Related,
(6) Market or Demand Decision.