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

Q1. At the time of product or service identification, give the name of any two factors on which the ‘Level of operation’ depends. (CBSE 2012 Comptt.) (1 mark)
Ans. At the time of product or service identification, the two factors on which the ‘Level of Operation’ depends are the average cost or the cost of production per unit.

Q2. What is the first sign of entrepreneurial talent ? (1 mark)
Ans. Ability to spot opportunities.

Q3. What are the qualities that distinguish an entrepreneur from others ? (2 marks)
Ans. Ability to identify and spot opportunity and presence of qualities such as Talent, Temperament and Technique.

Q4. What ultimately decides the price of a product or service ? (2 marks)
Ans. The cost of product or service ultimately decides the price of a product or service.

Q5. What is market assessment ? (2 marks)
Ans. Market assessment means analysis of market for knowing demand and supply position of the product, its sources and delivery and the product quality.

Q6. Demand assessment is based on which factors ? (2 marks)
Ans. Demand assessment is based on the factors like size of market i.e., local, state level, national level, international level, target groups of consumers, their preferences, etc.

Q7. What will be the level of operation for a wooden based handicraft item ? (1 mark)
Ans. Very small cottage industry.

Q8. Fix the level of operation for producing spare parts for automobile. (2 marks)
Ans. The level of operation for producing spare parts for an automobile should be small-scale industry.

Q9. What is meant by Annual Turnover ? (2 marks)
Ans. Annual Turnover is the total quantity of goods or services produced by an enterprise in a given period of time and is expressed in units like rupees, tonnes, kilograms, etc.

Q10. Hina was manufacturing beauty products and was always on the lookout to improvise her products. She used social media and online surveys to understand the latest trend in customer needs and overall in cosmetics industry. Through the surveys, she understood that the customers prefer natural ingredients like multani mitti or neem in place of chemicals in the beauty products. Responding to customers’ needs, she developed “Multani Mitti cum Neem Face Pack” in an attractive package. It was highly priced as she knew that the customers will be ready to pay the price for the quality. Her face pack was an instant success.

Identify the way in which Hina spotted this trend.(SQP) (1 mark)
Ans. Think Trend.

Q11. What is the meaning of trend spotting ? (TBQ) (1 mark)
Ans. It means identification of new trends.

Q12. Why is creativity important ? (1 mark)
Ans. Creativity is important to entrepreneurs because it is the first stage in the process of innovation, providing the stimulus for opportunity discovery and new venture creation.

Q13. Name two abilities that can be referred as enterprising ? (1 mark)
Ans. Innovation and creativity.