Chapter 23: Elements of Entrepreneurship — Online MCQ Test
COMMERCE · CLASS 12th · Tamil Nadu State Board
Practice Chapter 23: Elements of Entrepreneurship with a free chapter-wise online MCQ test.
This chapter covers: Exploring business ownership this chapter details entrepreneur traits economic functions and roles. Students compare entrepreneurs intrapreneurs and managers while analyzing challe....
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Chapter 23: Elements of Entrepreneurship — Important Questions & Answers
Who is called the organizer of a business venture who takes initiative and bears risk?
- A. Manager
- B. Entrepreneur
- C. Worker
- D. Consumer
Answer: B. Entrepreneur
An entrepreneur is the person who initiates a business idea, organises resources, and assumes risk to start a venture.
An entrepreneur is the person who initiates a business idea, organises resources, and assumes risk to start a venture.
Which one is NOT an entrepreneurial characteristic?
- A. Innovation
- B. Risk-taking
- C. Leadership
- D. Routine supervision only
Answer: D. Routine supervision only
Entrepreneurs are known for innovation, risk-taking, and leadership. Routine supervision is more closely associated with managerial work.
Entrepreneurs are known for innovation, risk-taking, and leadership. Routine supervision is more closely associated with managerial work.
The economic function of an entrepreneur is mainly to create ______.
- A. Consumption
- B. Employment and wealth
- C. Wastage
- D. Monopoly only
Answer: B. Employment and wealth
Entrepreneurs help generate employment, wealth, and economic development by starting and expanding business ventures.
Entrepreneurs help generate employment, wealth, and economic development by starting and expanding business ventures.
A successful entrepreneur launches a new product after studying customer needs, while a manager later supervises its production. Which statement is correct?
- A. Both are performing the same role
- B. The entrepreneur is innovating and taking risk; the manager is coordinating operations
- C. The manager takes all entrepreneurial risk
- D. The entrepreneur only follows instructions
Answer: B. The entrepreneur is innovating and taking risk; the manager is coordinating operations
The entrepreneur identifies opportunities and takes risk to start the product, while the manager handles coordination and execution.
The entrepreneur identifies opportunities and takes risk to start the product, while the manager handles coordination and execution.
Which statement is correct about the economic role of entrepreneurs?
- A. They only distribute goods already produced by others
- B. They create new combinations of land, labour, capital, and organisation
- C. They remove all business risks from the economy
- D. They are concerned only with salaries
Answer: B. They create new combinations of land, labour, capital, and organisation
Entrepreneurs combine production factors in new ways to produce goods and services and stimulate economic growth.
Entrepreneurs combine production factors in new ways to produce goods and services and stimulate economic growth.