UNIT 1

Question 1

Peter F. Drucker defined an entrepreneur as one who always _______

Answer 1

1) searches for an opportunity

Question 2

The basic test of a successful entrepreneur is _____

Answer 2

1) identification of a business opportunity
2) making best use of the opportunity
3) initiating steps to produce and sell goods and services

Question 3

Entrepreneur: Entrepreneurship: Enterprise:: ____:___:____

Answer 3

1) Person
2) Process
3) Outcome

Question 4

A business opportunity can be described as

_______

Answer 4

As an economic idea which can be implemented to create a business enterprise and earn profits

Question 5

Before selecting an opportunity, the entrepreneur has to ensure:

Answer 5

1) good market is available for the product he is going to produce
2) the rate of return on investment is attractive and accepted by him

Question 6

Can all ideas be converted into opportunities ?

Answer 6

No, sometimes an entrepreneur implements an idea without studying the market and the rate of return which often leads to low level of customers and no profit

Question 7

What are the 5 elements of a business opportunity ?

Answer 7

1) Assured market scope
2) Attractive and acceptable rate of return on investment
3) Practicability of the idea
4) Competence of the entrepreneur
5) Potential of future growth

Question 8

An opportunity may be derived from ____ and ____ of society

Answer 8

Needs and problems of society

Question 9

_____A_______
__C__
> __E__>__F__>__G__>__H_>
__D__

                \_\_\_\_\_\_\_B\_\_\_\_\_\_\_\_

Answer 9

A) Environment 
B) Environment 
C) Problems 
D) Needs
E)Sensing opportunities 
F)Creativity and ideas
G) Innovation and product 
H) Project business

Question 10

Sensing entrepreneurial opportunities is a process of _____

Answer 10

Converting an idea in to an opportunity and then into an enterprise

Question 11

__A_____ _____B__

          \_\_\_\_C\_\_>

Answer 11

A) Needs and problems
B) Creative solutions
C) Entrepreneurial opportunities

Question 12

To sense an entrepreneurial opportunity, an entrepreneur uses his skills of____,____ and ____.

Answer 12

Observation, analysis and synthesis

Question 13

The three most important factors involved in sensing opportunities are:

Answer 13

1) Ability to perceive and preserve basic ideas to be used commercially
2) Ability to harness different sources of information
3) Vision and creativity

Question 14

Name the five factors that lead to emergence of a basic idea:

Answer 14

1) Problems
2) Change
3) Inventions
4) Competition
5) Innovation

Question 15

Name a few different sources of information

Answer 15

Magazines, journals, books, trade shows, family members etc

Question 16

Entrepreneurs constantly ____,____ and ____

Answer 16

Overcome adversity, exercise control over the business and make a significant difference

Question 17

A business environment can be defined as _____

Answer 17

All those conditions and forces external to a business unit under which it operates

Question 18

T or F:

Entrepreneurship does grow spontaneously and is not dependent on economic, social, political, legal etc. factors

Answer 18

False.

Entrepreneurship does NOT grow spontaneously and IS dependent on other external factors

Question 19

Environment scanning can be defined as______

Answer 19

Carefully monitoring the internal and external environment of an organization for detecting early signs of opportunities or threats that may influence current or future plans

Question 20

Name the 6 reasons for the importance of environment scanning:

Answer 20

1) Early identification of opportunities is advantageous
2) Formulation of strategies and policies
3) Tapping useful resources
4) Better performance
5) Sensitization of the entrepreneur to cope with rapid changes
6) Image building

Question 21

________A________

______B_______ __C_____

\_\_\_D\_\_  \_\_E\_\_                  \_\_\_F\_\_    _G_

                     \_\_\_\_\_\_\_H\_\_\_\_\_\_

Answer 21

A) Environment scan
B) Internal analysis
C ) External Analysis
D) Strengths 
E) Weaknesses
F) Opportunities 
G) Threats
H) SWOT matrix

Question 22

Environment analysis is the process of ____

Answer 22

Monitoring the economic and non-economic environment to determine opportunities and threats. It involves data collection, information processing and forecasting

Question 23

Environment analysis is the process of ____

Answer 23

Monitoring the economic and non-economic environment to determine opportunities and threats. It involves data collection, information processing and forecasting

Question 24

The 5 sources for gaining information for environmental scanning are:

Answer 24

1) Verbal information
2) Records of companies
3) Government publications
4) Financial institutions publications
5) Formal studies by strategic planners

Question 25

Entrepreneurship environment refers to __________

Answer 25

The various forces within which small, medium and large enterprises operate. The influence each other and do not operate in isolation

Question 26

_________A_______ ___B___ ____C_____ 1) 6) 2) 7) 3) 8) 4) 9) 5) 10) 11)

Answer 26

``` A) business environment B) Micro environment 1) Suppliers 2)Customers 3) intermediaries 4) competitors 5) general public C) Macro environment (PESTEL) 6) Political 7) Economical 8) Social 9) Technological 10) Ecological 11) Legal ```

Question 27

The three objectives of problem identification are:

Answer 27

1) clearly state the problem 2) Identify target group facing the problem 3) Find the market acceptability of the solution of the problem

Question 28

Problem identification helps the entrepreneur to:

Answer 28

1) Bring out new products in the market 2) Understand needs and problems of the market 3) Be creative 4) Increase employment generation 5) Increase nation income

Question 29

Idea generation is the process of_____

Answer 29

Creating, developing and communicating ideas which are abstract, concrete or visual

Question 30

Idea fields can be described as____

Answer 30

Convenient frames of reference for streamlining the process of generation of ideas

Question 31

Name the various sources of idea fields

Answer 31

1) Natural resources 2) Market or demand driven 3) Service related 4) Existing products or services 5) Trading related 6) Creative efforts

Question 32

Name the 5 ways in which creative ideas can be generated:

Answer 32

1) develop a new product or service 2) improve an existing product or service 3) Find a new process/resource for manufacturing a product 4) Find a new market for existing products 5) Find a new use of an existing product

Question 33

Name the four factors needed to convert an idea into an opportunity:

Answer 33

1) skills 2) knowledge 3) competency 4) creative thinking

Question 34

Assessing an idea or an opportunity consists of the following steps:

Answer 34

1) product identification 2) application and use 3) level of operation 4) cost 5) competition 6) Technical complexity 7) annual turnover and profit margin

Question 34

Assessing an idea or an opportunity consists of the following steps:

Answer 34

1) product identification 2) application and use 3) level of operation 4) cost 5) competition 6) Technical complexity 7) annual turnover and profit margin

Question 35

Details on the following are necessary for assessing the market:

Answer 35

1) demand 2) supply 3) nature of competition 4) cost and price of product 5) project innovation and change

Question 36

Name the ways in which entrepreneurs spot trends:

Answer 36

1) Read trends 2) Talk trends 3) Watch trends 4) Think trends

Question 37

Name the 5 steps in the creative process of an entrepreneur:

Answer 37

1) Idea germination 2) Preparation 3) Incubation 4) Illumination 5) Verification

Question 38

Name the 4 elements in the innovation process:

Answer 38

1) Analytical planning 2) Organizing resources 3) Implementation 4) Commercial application