Test: Entrepreneurial Opportunity - 1 - CUET Commerce MCQ

Entrepreneurship is the process by which individuals or a group of individuals (entrepreneurs) exploits a commercial opportunity, either by bringing a new product or process to the market or by substantially improving an existing good, service, or method of production. This process is generally organised through a new organisation but may also occur in an established small business that undergoes a significant change in product or strategy.

Selection of a proper faculty is an important part of pre-training phase or the initial phase. In this stage, teachers from various universities, professional institutes, banks and research and development field are invited. The success of an EDP depends upon able and well-qualified faculty.

LLC stands for "limited liability company." An LLC is a type of legal entity that can be formed to own and operate a business. LLCs are very popular because they provide the same limited liability as a corporation, but are easier and cheaper to form and run.

Surveys, in-depth interviews and trade fairs are the different means of collecting information about people's needs and preferences. The identification of such requirements helps business organizations in generating business opportunity, satisfying public needs and earning profits. Financial reports are provided by the organization for the interest of the stakeholders. Hence, financial reports is the correct answer.

Tactical decisions pertaining to the policy and planning of the firm are known as policy decisions. Such decisions are usually reserved for the firm's top management officials. They have a long term impact on the firm and require a great deal of analysis.

A thought of new product is examined among potential consumers to determine consumer acceptance at the concept stage. New product is designed according to the need of the potential buyers. Thus, at the concept stage or planning stage, a thought of new product is examined.

The 'Enabler Model' depends on establishing and communicating simple, clear processes for selecting projects, allocating funds and tracking progress, all with well-defined executive involvement.
The basic premise of the enabler model is that employees across an organization will be willing to develop new concepts if they are given adequate support. Dedicating resources and processes enables teams to pursue opportunities on their own in so far as they fit the organization's strategic frame.

According to Schumpeter, the rate of economic growth depends upon the number of innovations introduced by the entrepreneurs and the extent with which the financial institutions come forward to finance the new venture businesses which are associated with high risks. He considered the fact that the prevailing entrepreneurship development determines the economic growth and innovation itself is of no use unless it is made available to the public through new product and the activities involved in such processes are known as 'entrepreneurship'.

An attractive industry is the one which is new, fragmented and has high operating margins. Such industry has a large number of small and medium-sized companies with no significant market share or influence on the industry. Therefore, such industry has more opportunities to offer. Hence, option 1 is the correct answer.

Idea management is a formalised, structure routine for generating, evaluating and implementing of ideas to drive innovation and large scale organisational change.
In practice, idea management is formed of four distinct but overlapping areas: Strategy, Processes, Tools & Methods, as well as Culture.