23 extra multiple-choice questions for Types of Entrepreneurs (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
An entrepreneur who is always focussed on introducing a new project, or something new in a venture already started, is called
- A. Imitative entrepreneur
- B. Innovating entrepreneurCorrect
- C. Fabian entrepreneur
- D. Drone entrepreneur
Explanation. The innovating entrepreneur constantly observes the environment and contributes something new, such as a brand new or upgraded product, an untapped market or a new method of production or distribution.
Q2
An entrepreneur who simply reengineers or redesigns products developed in advanced countries and produces a version suited to local conditions is
- A. Innovating entrepreneur
- B. Drone entrepreneur
- C. Imitative entrepreneurCorrect
- D. Professional entrepreneur
Explanation. The imitative entrepreneur imitates skill, knowledge or technology already used in advanced countries. Electronic products and expensive medicines are reengineered this way in developing countries.
Q3
Consider the following statements:
1. Fabian entrepreneurs adapt to changes only as a last resort, when they fear loss or collapse of the enterprise.
2. Drone entrepreneurs never adapt themselves to change.
3. Drone entrepreneurs are always quick to adopt new technology.
Which of the statements given above is/are correct?
- A. 1 and 2 onlyCorrect
- B. 2 and 3 only
- C. 1 only
- D. 1, 2 and 3
Explanation. The book says the main difference is that the fabian entrepreneur adapts to change eventually as a last resort, while the drone entrepreneur never adapts. Drones are totally opposed to change, so statement 3 is wrong.
Q4
Drone entrepreneurs usually operate in
- A. the international market
- B. a niche (small) marketCorrect
- C. the stock market
- D. the government sector
Explanation. Drone entrepreneurs are totally opposed to changes in the environment. They doggedly follow conventional practices and operate in a niche, or small, market.
Q5
Business entrepreneur is also called
- A. Promoter
- B. Solo entrepreneurCorrect
- C. Classical entrepreneur
- D. Pure entrepreneur
Explanation. A business entrepreneur is called a solo entrepreneur. He or she conceives an idea for a new product or service and establishes a small or large enterprise to translate it into reality.
Q6
The core strength of a trading entrepreneur lies in
- A. Manufacturing and value addition
- B. Distribution and marketingCorrect
- C. Raising farm products
- D. Technical skill
Explanation. Trading entrepreneurs only buy and sell finished goods, in domestic or international trade. Their core strength lies in distribution and marketing, and they earn by way of commission.
Q7
Industrial entrepreneurs add utility to the products rolled out by them. This is termed as
- A. Value additionCorrect
- B. Reengineering
- C. Diversification
- D. Promotion
Explanation. Industrial entrepreneurs mobilise resources and create an entity to manufacture products after spotting a need left unfulfilled. The utility they add to their products is termed value addition.
Q8
Assertion (A): A corporate entrepreneur installs a team of experts to manage the entity on a day-to-day basis.
Reason (R): In the corporate form of organisation, ownership and management are separated.
- 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. Because ownership and management are separated in a corporate entity, the corporate entrepreneur (promoter) assembles resources and puts experts in place to run the business daily. R explains A.
Q9
Find the odd one out in context of agricultural entrepreneurs (agriculture and allied sector).
- A. Poultry
- B. Honey
- C. Prawn
- D. AdvertisingCorrect
Explanation. Agricultural entrepreneurs raise farm products and allied products such as poultry, fish, honey, flowers, silk and prawn. Advertising firms belong to the category of service entrepreneurs.
Q10
Entrepreneurs who buy goods in small quantities from numerous wholesalers and make products of different brands available under one roof to the end consumer are
- A. Industrial entrepreneurs
- B. Trading entrepreneurs
- C. Retail entrepreneursCorrect
- D. Corporate entrepreneurs
Explanation. Retail entrepreneurs distribute the end-product to the final consumer. They buy from numerous wholesalers and offer different products of different brands under one roof.
Q11
Which of the following ventures comes under the category of service entrepreneur?
- A. Weaving
- B. InsuranceCorrect
- C. Pottery
- D. Fish farming
Explanation. Service entrepreneurs supply service products to end consumers, such as banking, insurance, financial services, repair, transport, advisory and advertising. Weaving and pottery are crafts; fish farming is agricultural.
Q12
Technical entrepreneurs such as welders, carpenters, potters and tailors who start small ventures mainly focus on
- A. Production rather than marketingCorrect
- B. Marketing rather than production
- C. Buying and selling finished goods
- D. Selling the venture after take-off
Explanation. Technical entrepreneurs turn out high quality products or services and focus on production rather than on marketing. Their strength lies in the skill or knowledge of producing a specialised product.
Q13
Entrepreneurs who do not possess technical competence to produce goods but have special talent to market and distribute the products made by technical entrepreneurs are
- A. Professional entrepreneurs
- B. Non-technical entrepreneursCorrect
- C. Drone entrepreneurs
- D. Imitative entrepreneurs
Explanation. Non-technical entrepreneurs lack technical competence but have the talent to market products successfully and distribute them effectively to channel members and end consumers.
Q14
An entrepreneur who has rich expertise in starting a venture, sells it to someone else after its successful take-off and then conceives new projects is a
- A. Classical entrepreneur
- B. Professional entrepreneurCorrect
- C. Technical entrepreneur
- D. Spontaneous entrepreneur
Explanation. The professional entrepreneur lacks interest in continuing as manager or owner. His or her expertise lies in starting a venture and exiting it after it is established, then developing alternative projects.
Q15
Pure entrepreneurs are propelled to enter into a venture by
- A. Government incentives and subsidies
- B. Psychological and economic motivesCorrect
- C. Family business tradition
- D. Fear of losing their job
Explanation. Pure entrepreneurs are driven by psychological and economic motives. Their egos do not let them work for others; they seek high profit and social status. Examples include Jamshedji Tata and Azim Premji.
Q16
An entrepreneur who is inspired to take up entrepreneurial activity because of loans, subsidies, tax holidays and other concessions given by the Government is called
- A. Pure entrepreneur
- B. Induced entrepreneurCorrect
- C. Motivated entrepreneur
- D. Spontaneous entrepreneur
Explanation. Induced entrepreneurs are drawn into business by entrepreneurship friendly Government policies such as loans, subsidies, low interest, tax breaks, training, sheds and land at subsidised prices.
Q17
Motivated entrepreneurs are motivated to take up a venture by the desire for
- A. Government concessions
- B. Self fulfilmentCorrect
- C. Following their ancestors
- D. Avoiding change
Explanation. Motivated entrepreneurs take up a venture out of a desire for self fulfilment and the prospect of huge profit. They may develop the venture to a saleable stage and sell it at a super profit.
Q18
Entrepreneurs who have a natural inclination to start a venture and are driven by their inner urge and inborn traits are
- A. Induced entrepreneurs
- B. Spontaneous entrepreneursCorrect
- C. Classical entrepreneurs
- D. Imitative entrepreneurs
Explanation. Spontaneous entrepreneurs are bold, optimistic and enterprising, with a passion for meeting challenges. Their inner urge and inborn traits drive them to start their ventures.
Q19
Match the following (classification based on development stage and motivation):
A. First generation entrepreneur - 1. Starts his own venture as a family business
B. Modern entrepreneur - 2. Natural inclination and inborn traits
C. Classical entrepreneur - 3. No family background; self made
D. Spontaneous entrepreneur - 4. Identifies unfilled gaps in the market with an eagle eye
- A. A-1, B-4, C-3, D-2
- B. A-3, B-2, C-1, D-4
- C. A-3, B-4, C-1, D-2Correct
- D. A-4, B-3, C-2, D-1
Explanation. First generation entrepreneurs have no family background and are self made; modern ones spot unmet needs in the market; classical ones start a family business; spontaneous ones act on inborn traits.
Q20
Rural entrepreneurs are provided economic and fiscal incentives to start ventures in rural and semi urban areas in order to
- A. Increase imports
- B. Check the exodus of rural people to urban centresCorrect
- C. Raise the cost of operation
- D. Promote state entrepreneurship
Explanation. Incentives for rural ventures aim to check the migration of rural people to cities in search of jobs. Easy access to material and labour at low cost also keeps their operating cost low.
Q21
Ventures started and owned by both private individuals and the Government denote
- A. Private entrepreneurship
- B. State entrepreneurship
- C. Joint entrepreneurshipCorrect
- D. Corporate entrepreneurship
Explanation. Under classification by ownership, ventures owned jointly by private individuals and the Government are joint entrepreneurship. Government ventures alone are state entrepreneurship; individuals alone, private.
Q22
Find the odd one out in context of classification in terms of motivation.
- A. Pure
- B. Induced
- C. Spontaneous
- D. ClassicalCorrect
Explanation. Classification in terms of motivation has four types: pure, induced, motivated and spontaneous. Classical entrepreneur belongs to the classification based on development stage.
Q23
According to the chart of types of entrepreneurs, how many types are listed under the classification based on type of business?
- A. Four
- B. Five
- C. SevenCorrect
- D. Three
Explanation. The type of business classification has seven types: business, trading, industrial, corporate, agricultural, retail and service entrepreneurs. Function and motivation have four each.
