Entrepreneurial Skills-II Case Study Based Questions 02 Term II

Information Technology TERM II

Entrepreneurial Skills-II

Class 10 Session 2021-2022

Case Study Questions 02

Direction Read the case and answer the following questions.

Business includes all those economic activities which are concerned with the production/purchase and sale or exchange of goods and services with the objective of earning profits. A business enterprise is an economic institution as it is engaged in the production and/or distribution of products and services in order to earn profits. A factory owner, a shopkeeper, a transport company, an insurance company, a commercial bank, an advertising agency, etc., are examples of business enterprises. Hence, business may be defined as an economic activity involving the production and sale of goods and services to earn profits by satisfying human needs.

On the other hand, entrepreneurship is the process of discovering an opportunity, mobilising resources, launching an enterprise to explore the opportunity. It is an attempt to create value. Business and entrepreneurship are complementary to each other and cannot be separated.

(i) What is the name given to the process of discovering an opportunity, mobilising resources, launching an enterprise to exploit the opportunity?

(a) Entrepreneurship
(b) Entrepreneurship development
(c) Entrepreneurship activities
(d) Entrepreneur

(a) According to the National Knowledge Commission (NKC), “Entrepreneurship is the set of activities performed by an entrepreneur.” Thus, entrepreneur precedes entrepreneurship.
An entrepreneurship deals with discovering an opportunity, utilising and mobilising resources, launching an enterprise to explore the opportunity.

(ii) In which of the following activity a business enterprise is involved?

(a) Production and/or distribution of products and services in order to earn profits.
(b) Discovering an opportunity and mobilising resources.
(c) Launching an enterprise to exploit the opportunity.
(d) All of the above

(a) A business enterprise is much different from an entrepreneurship. A business enterprise mainly subjected to economic activities profit/loss and many more. Whereas an entrepreneurship is basically concerned about the overall development of their company with their country.

(iii) Which of the following is/are complementary to each other?

(a) Entrepreneurship and marketing
(b) Business and sales
(c) Business and entrepreneurship
(d) Business and marketing

(c) Business and entrepreneurship are complementary to each other as they are different in the way they both operate. Business is about profit/loss statement and entrepreneurship is about growth.

(iv) Which of the following is/are example(s) of business activities?

(a) An advertising company
(b) A factory owner
(c) A transport owner
(d) All of the above

(d) The business activities given in the options are not innovative in any essence of work. These are traditional business that are going round. Thus, these (an advertising company, a factory owner, a transport owner) are business activities.

(v) Which of the following statement(s) is/are false about business?

(a) Business may be defined as an economic activity involving the production.
(b) Business is concerned about the sale of goods and services to earn profits by satisfying human needs.
(c) Both (a) and (b)
(d) Business is an attempt to create value.

(d) Business is not an attempt to create value whereas an entrepreneurship business is all about traditional work which does not involve innovativeness. Entrepreneurship is concerned with creating new products, innovative ideas and to create value of the products.

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