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Chapter 5: Entrepreneurship — Online MCQ Test

COMMERCE · CLASS 12 INTERMEDIATE 2 YEAR · Telangana State Board
Practice Chapter 5: Entrepreneurship with a free chapter-wise online MCQ test. This chapter covers: Focusing on business creation this chapter covers entrepreneurship concepts characteristics functions types of entrepreneurs and their vital role in economic development.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 5: Entrepreneurship — Important Questions & Answers

Who is an entrepreneur?
  • A. A person who takes risks and organizes business activities
  • B. A person who only invests money in shares
  • C. A person who works only as a salaried employee
  • D. A person who buys goods for personal use
Answer: A. A person who takes risks and organizes business activities
An entrepreneur is a person who starts and organizes a business, takes risks, and makes decisions to earn profit.
Which of the following is a characteristic of an entrepreneur?
  • A. Risk-taking
  • B. Routine obedience
  • C. Dependence on others for decisions
  • D. Avoidance of innovation
Answer: A. Risk-taking
Risk-taking is one of the main characteristics of an entrepreneur because business involves uncertainty.
Entrepreneurship mainly refers to:
  • A. The process of starting and developing a business venture
  • B. The process of fixed salary employment
  • C. The process of only consuming goods
  • D. The process of government budgeting
Answer: A. The process of starting and developing a business venture
Entrepreneurship is the process of identifying opportunities, starting a venture, and managing it for profit and growth.
Which statement best distinguishes an entrepreneur from a manager?
  • A. An entrepreneur takes risk, while a manager mainly executes plans
  • B. A manager always owns the business, while an entrepreneur does not
  • C. An entrepreneur never makes decisions, while a manager does
  • D. Both are identical in role and responsibility
Answer: A. An entrepreneur takes risk, while a manager mainly executes plans
An entrepreneur is the risk bearer and initiator of the business, whereas a manager mainly implements and controls business operations.
A question with two statements is given: Statement I: Entrepreneurs always avoid uncertainty. Statement II: Entrepreneurs are responsible for bearing business risks. Which is correct?
  • A. Statement I is false and Statement II is true
  • B. Statement I is true and Statement II is false
  • C. Both statements are true
  • D. Both statements are false
Answer: A. Statement I is false and Statement II is true
Entrepreneurs do not avoid uncertainty; they face it and bear risks while starting and running a business.