29 extra multiple-choice questions for Elements of Entrepreneurship (12th Standard Commerce, Samacheer Kalvi), beyond the ones printed in the textbook — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.
Q1
The term 'entrepreneur' has been derived from which language?
- A. Latin
- B. FrenchCorrect
- C. German
- D. Greek
Explanation. Section 23.01 says the term entrepreneur comes from the French language, where it originally meant an organiser of musical or other entertainments.
Q2
In which year did the Oxford Dictionary describe the entrepreneur as one who organises musical performances?
- A. 1897Correct
- B. 1934
- C. 1991
- D. 1996
Explanation. The Oxford Dictionary of 1897 defined an entrepreneur as the director or manager of a musical institution that organises musical performances. 1934 is the year of Schumpeter's innovation view.
Q3
Match the thinker with the view of the entrepreneur.
A. Richard Cantillon - 1. Innovator
B. Jean Baptize - 2. Risk bearer
C. Joseph A. Schumpeter - 3. Organiser
- A. A-2, B-3, C-1Correct
- B. A-3, B-2, C-1
- C. A-1, B-3, C-2
- D. A-2, B-1, C-3
Explanation. Cantillon described the entrepreneur as one who bears the risk of the venture; Jean Baptize saw him as an organiser of factors of production; Schumpeter used innovation as the criterion.
Q4
In which year did Joseph A. Schumpeter use innovation as the criterion to define an entrepreneur?
- A. 1897
- B. 1934Correct
- C. 1991
- D. 1996
Explanation. The lesson states that Joseph A. Schumpeter, in 1934, used innovation as a criterion to define an individual as an entrepreneur, for example one who introduces a brand new product.
Q5
Who defined the entrepreneur as an innovator, one who does things not generally done in the ordinary course of business and carries out new combinations?
- A. Richard Cantillon
- B. Jean Baptize
- C. Joseph A. SchumpeterCorrect
- D. Oxford Dictionary
Explanation. This definition is given by J.A. Schumpeter, who saw entrepreneurship as a creative activity and the entrepreneur as one who innovates and carries out new combinations or enterprise.
Q6
Which of the following statements about the concept of entrepreneur is/are correct?
1. Entrepreneurship is regarded as one of the four major factors of production.
2. The concept of entrepreneur is connected with three core elements: risk bearing, organising and innovating.
- A. 1 only
- B. 2 only
- C. Both 1 and 2Correct
- D. Neither 1 nor 2
Explanation. The lesson treats entrepreneurship as a factor of production besides land, labour and capital, and sums up the concept of entrepreneur through risk bearing, organising and innovating.
Q7
Which characteristic requires an entrepreneur not to stick rigidly to decisions but to change them as the business environment changes?
- A. Foresight
- B. FlexibilityCorrect
- C. Hard work
- D. Self confidence
Explanation. Under flexibility, the entrepreneur should change decisions already made in the light of the ever-changing business environment instead of sticking to them doggedly.
Q8
An entrepreneur who foresees likely changes in the market, consumer attitude and technology and takes timely action shows which characteristic?
- A. Analytical ability
- B. ForesightCorrect
- C. Leadership
- D. Resource mobilisation
Explanation. Foresight means visualising the future business environment: foreseeing changes in market, consumer attitude and technology, and acting in time. Analytical ability is about objective, rational decisions.
Q9
Find the odd one out with respect to the characteristics of an entrepreneur.
- A. Spirit of enterprise
- B. Analytical ability
- C. Decision making
- D. Dependent cultureCorrect
Explanation. Spirit of enterprise, analytical ability and decision making are among the ten characteristics in section 23.02. Dependent culture is listed among the challenges faced by women entrepreneurs, not as a characteristic.
Q10
Encouraging entrepreneurship in under developed regions through incentives and concessions, which also checks rural people migrating to urban centres for jobs, leads to
- A. Balanced regional developmentCorrect
- B. Export promotion
- C. Contribution to GDP
- D. Better standard of living
Explanation. Under balanced regional development, the lesson says incentives for entrepreneurship in backward regions promote balanced growth and check migration of rural population to urban centres in search of employment.
Q11
Assertion (A): Encouraging entrepreneurs to produce export oriented goods helps a country correct an adverse balance of payment position.
Reason (R): Export oriented goods add to the foreign exchange reserve of the country.
- A. Both A and R are true and R is the correct explanation of ACorrect
- B. Both A and R are true but R is not the correct explanation of A
- C. A is true but R is false
- D. A is false but R is true
Explanation. Under export promotion, the lesson says export oriented production adds to the foreign exchange reserve, and a comfortable reserve helps address an adverse balance of payment. R explains A.
Q12
Establishing small, medium and micro enterprises all over the country prevents economic power from being concentrated in the hands of
- A. The Government
- B. A few large entrepreneursCorrect
- C. Women entrepreneurs
- D. Consumers
Explanation. The lesson says promoting small, medium and micro enterprises prevents the concentration of economic power in the hands of a few large entrepreneurs and brings equitable distribution of wealth.
Q13
One who thinks and acts like an entrepreneur for the firm's development while being employed in the organisation is called
- A. Manager
- B. IntrapreneurCorrect
- C. Promoter
- D. Consultant
Explanation. Section 23.04 describes the intrapreneur as an inside entrepreneur, an employee within a large firm who uses entrepreneurial skills without bearing the associated risk.
Q14
Which of the following statements about an intrapreneur is correct?
- A. Intrapreneur shares in the profits of the venture
- B. Intrapreneur mobilises funds to finance the venture
- C. Intrapreneur operates within the enterpriseCorrect
- D. Intrapreneur bears the risk of the venture
Explanation. The comparison table says the intrapreneur operates within the enterprise, does not mobilise funds, does not share profits and bears no risk, though he is accountable for the task assigned.
Q15
According to the comparison table, a manager requires
- A. Creative talent and intuition
- B. Conceptual skills and human relations skillsCorrect
- C. Urge for innovation
- D. Risk bearing capacity
Explanation. The table of differences says a manager requires conceptual skills and human relations skills, while an entrepreneur requires creative talent, intuition and an urge for innovation.
Q16
As defined by the Government of India, a women entrepreneur's enterprise is owned and controlled by a woman having a minimum financial interest of ______ of the capital and giving at least ______ of the employment generated to women.
- A. 26% and 26%
- B. 51% and 51%Correct
- C. 51% and 25%
- D. 80% and 51%
Explanation. The Government of India definition requires a minimum financial interest of 51 per cent of the capital held by women and at least 51 per cent of the employment generated in the enterprise given to women.
Q17
"Women who innovate, imitate or adopt a business activity are known as women entrepreneurs." This definition is based on whose concept?
- A. Richard Cantillon
- B. SchumpeterCorrect
- C. Jean Baptize
- D. Government of India
Explanation. The lesson gives this definition as Schumpeter's concept of women entrepreneurs. The Government of India definition instead rests on women's share in equity and employment.
Q18
The Credit Guarantee Fund Scheme for Micro and Small Enterprises extends its guarantee up to what percentage for MSEs owned and operated by women?
- A. 51%
- B. 75%
- C. 80%Correct
- D. 100%
Explanation. Under opportunities created by associations, the lesson says the percentage of guarantee given by the Credit Guarantee Fund Scheme for Micro and Small Enterprises extends up to 80 per cent for MSEs owned and operated by women.
Q19
In which year was the Consortium of Women Entrepreneurs of India (CWEI) registered as a civil society?
- A. 1991
- B. 1996Correct
- C. 2004
- D. 1934
Explanation. CWEI was registered as a civil society in 1996. It is a non-profit organisation accredited by the Government of India and a member of the National Board, Ministry of MSME.
Q20
Which of the following statements about the Consortium of Women Entrepreneurs of India (CWEI) is/are correct?
1. It is a non-profit organisation accredited by the Government of India.
2. It is a member of the National Board, Ministry of MSME.
3. It works closely with the Ministry of Rural Development.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3Correct
Explanation. The lesson says CWEI is a non-profit organisation accredited by the Government of India, a member of the National Board of the Ministry of MSME, and works closely with the Ministry of Rural Development.
Q21
Find the odd one out with respect to the challenges of women entrepreneurs.
- A. Problem of finance
- B. Limited mobility
- C. Stiff competition
- D. Collateral free loansCorrect
Explanation. Problem of finance, limited mobility and stiff competition are challenges faced by women entrepreneurs. Collateral free loans are listed as a form of non-financial support, an opportunity.
Q22
Women, however educated, are groomed to depend on parents, life partners and children and must take permission for any gainful activity. This challenge is called
- A. Sensitivity
- B. Dependent cultureCorrect
- C. Lack of information
- D. Lack of network support
Explanation. Under dependent culture, women depend on others in different phases of life and cannot take decisions on their own, which stops them starting and managing ventures freely.
Q23
Which is the first and foremost promotional function of an entrepreneur?
- A. Discovery of ideaCorrect
- B. Mobilisation of funds
- C. Preparation of business plan
- D. Procurement of machines and materials
Explanation. The lesson says idea generation, or discovery of idea, is the first and foremost function of an entrepreneur; the ideas collected are weighed and one worth pursuing commercially is selected.
Q24
Studying the commercial feasibility of the proposed product, its potential demand and the sources and prices of its inputs is part of which promotional function?
- A. Determining the business objectives
- B. Detailed investigationCorrect
- C. Fulfilment of the formalities
- D. Choice of form of enterprise
Explanation. Under detailed investigation, the entrepreneur studies the product's commercial feasibility, conducts a market study for its potential demand and probes the sources of supply of inputs and their prices.
Q25
Arrange the following promotional functions in the order given in the lesson.
1. Mobilisation of funds
2. Discovery of idea
3. Choice of form of enterprise
4. Preparation of business plan
- A. 2, 3, 4, 1Correct
- B. 2, 4, 3, 1
- C. 3, 2, 1, 4
- D. 2, 3, 1, 4
Explanation. The promotional functions run: discovery of idea, business objectives, detailed investigation, choice of form of enterprise, formalities, business plan, mobilisation of funds, and procurement of machines and materials.
Q26
Motivating, leading, guiding and communicating with subordinates on an ongoing basis to accomplish pre-set goals is the managerial function of
- A. Planning
- B. Organising
- C. DirectingCorrect
- D. Coordination
Explanation. In directing, the entrepreneur motivates, leads, guides and communicates with subordinates, issues orders and instructions, supervises employees, maintains discipline and provides leadership.
Q27
Fixing performance standards, measuring actual performance, comparing it with standards and taking corrective measures are steps in
- A. ControllingCorrect
- B. Planning
- C. Accounting
- D. Detailed investigation
Explanation. The lesson lists these steps under the managerial function of controlling, which also uses techniques such as accounting, auditing, management information system, cost control and financial tools.
Q28
For service products, which three components are added to the four components of marketing mix?
- A. People, process and physical evidenceCorrect
- B. Product, price and promotion
- C. Planning, organising and directing
- D. Packaging, pricing and warehousing
Explanation. The marketing mix is product, price, promotion and physical distribution for physical products; for service products three more components are included: people, process and physical evidence.
Q29
Preparing the trading and profit and loss account, the balance sheet, and cash flow and fund flow statements comes under which commercial function?
- A. Finance
- B. AccountingCorrect
- C. Production
- D. Human resource management
Explanation. Under accounting, the entrepreneur prepares trading and profit and loss account to know profit or loss, a balance sheet to know financial status, and cash flow and fund flow statements.
