TN 12th Commerce Solutions Chapter 23 Elements of Entrepreneurship
Tamilnadu 12th Commerce Solutions Chapter 23 Elements of Entrepreneurship. 12th standard students who want to get full marks in public examinations conducted by the Tamilnadu government must go through this guide. This is a book back answers all in one page. This guide is separated by chapter wise. One mark two mark and all brief questions are answered on this page
TN 12th Commerce Solutions Chapter 23 Elements of Entrepreneurship Textbook Exercise Questions and Answers
I. Choose the Correct Answer
Question 1.
Which of the below is a factor of production?
(a) Land
(b) Labour
(c) Entrepreneurship
(d) All of the above
Answer:
(d) All of the above
Question 2.
Entrepreneur is not classified as ________
(a) Risk Bearer
(b) Innovator
(c) Employee
(d) Organizer
Answer:
(b) Innovator
Question 3.
What are the characteristics of an entrepreneur?
(a) Spirit of enterprise
(b) Flexibility
(c) Self Confidence
(d) All of the above
Answer:
(d) All of the above
Question 4.
Which of the below is not classified into managerial functions?
(a) Planning
(b) Marketing
(c) Organizing
(d) Controlling
Answer:
(c) Organizing
Question 5.
Which of the below is a commercial function?
(a) Accounting
(b) Coordination
(c) Discovery of idea
(d) Planning
Answer:
(a) Accounting
II. Very Short Answer Questions
Question 1.
Mention any two features of entrepreneurs.
Answer:
- Flexibility
- Innovation
- Self Confidence
- Hard work
Question 2.
List down the managerial functions of entrepreneurs.
Answer:
- Planning
- Organising
- Directing
- Controlling
- Coordination
Question 3.
List down the promotional functions of entrepreneurs.
Answer:
- Discovery of idea
- Determining the business objectives
- Detailed Investigation
- Mobilisation of Funds.
Question 4.
Define Intrapreneur.
Answer:
Intrapreneur is one who thinks and acts like an entrepreneur for the firm’s development during the course of employment in an organisation.
Question 5.
List the problems faced by the women entrepreneurs.
Answer:
- Problems of Finance
- Education – Lack
- Network support – Lack
- Stiff competition
- Information – Lack
- Limited Mobility
- Sensitivity
III. Short Answer Questions
Question 1.
Define Entrepreneur.
Answer:
The person who establishes business is termed as entrepreneur. The output of an entrepreneurial process ends up in establishing an enterprise.
Question 2.
Distinguish between Entrepreneur and Manager.
Answer:
| Basis of difference | Entrepreneur | Manager |
| Motive | The very motive of an entrepreneur is to start a venture by setting of an entity. | The very motive of manager is to render service in an entity setup for execution of venture. |
| Status | Entrepreneur is owner of the entity. | Manager is a salaried employee in the entity set up for carrying on the venture. |
| Risk Bearing | Entrepreneur bears the eventual risk and uncertainty in operating the enterprise. | Manager doesn’t bear any risk in the venture, where the venture is unsuccessful he/she simply quits the enterprise. |
Question 3.
List down the commercial functions of Entrepreneur and explain them shortly.
Answer:
Commercial Functions of Entrepreneur:
(i) Production or Manufacturing: Under production function, entrepreneur has to take decision relating to selection of factory site, design and layout, type of products to be manufactured, research and development, product design, etc.
(ii) Marketing: Entrepreneur has to carry out following functions pertaining to marketing aspect namely consumer research, product planning and development, standardisation, packaging, pricing, warehousing, distribution, promotion etc.
(iii) Accounting: Entrepreneur has to arrange to prepare trading and profit and loss account in order to know the profit or loss incurred out of operation of the business and prepare balance sheet to know the financial status of business at a particular day.
(iv) Finance: In the sphere of financial function, an entrepreneur has to take decisions like choosing the right type of financing, framing the best dividend policy, acquiring of funds, efficiently managing fixed and current assets, maximising shareholders wealth and investing of funds efficiently and effectively.
(v) Human Resource Management: Entrepreneur has to estimate the manpower needs of the enterprise and accordingly decide the size of manpower required for various slots of organisational structure.
Question 4.
Explain the promotional functions of entrepreneur.
Promotional Functions of Entrepreneur
Answer:
Mobilisation of Funds:
Entrepreneur has to take steps to mobilise funds from various channels like Ownfunds, Borrow from relatives Banks, Financial Institutions etc.
Procurement:
He has to select the best sources of supply of machineries, Equipments and Materials.
Discovery of Idea:
- The first and foremost function of him is idea generation.
- He may use his own ideas or develop the ideas contributed by others.
Investigation:
He should investigate commercial feasibility of the product to be manufactured.
Determining the objectives:
He has to decide the nature of business, either manufacturing or Trading and determine the objectives.
Question 5.
Explain the commercial functions of entrepreneur.
Answer:
(i) Production or Manufacturing: Under production function, entrepreneur has to take decision relating to selection of factory site, design and layout, type of products to be manufactured, research and development, product design, etc. The efficient and effective performance of production function depends on the proper production planning and control to a major extent.
(ii) Marketing: Entrepreneur has to carry out following functions pertaining to marketing aspect namely consumer research, product planning and development, standardisation, packaging, pricing, warehousing, distribution, promotion etc. The term marketing mix denotes the combination of four components namely product, price, promotion and physical distribution in the case of physical products and three more components are included in the case of service products namely people, process and physical evidence.
(iii) Accounting: Entrepreneur has to arrange to prepare trading and profit and loss account in order to know the profit or loss incurred out of operation of the business and prepare balance sheet to know the financial status of business at a particular day. Besides, cash flow and fund flow statements are prepared to ensure the adequacy of funds and cash for meeting various working capital needs of the business.
(iv) Finance: In the sphere of financial function, an entrepreneur has to take decisions like choosing the right type of financing, framing the best dividend policy, acquiring of funds, efficiently managing fixed and current assets, maximising shareholders wealth and investing of funds efficiently and effectively.
(v) Human Resource Management: Entrepreneur has to estimate the manpower needs of the enterprise and accordingly decide the size of manpower required for various slots of organisational structure. After determining the required manpower, the entrepreneur has to organise for recruitment procedure
selecting manpower, induction and training, determining compensation structure and incentives, designing motivation programmes, structuring wellbeing measures for employees, putting in place safety mechanism at workplace, performance evaluation and career advancement and structuring social security programmes.
IV. Long Answer Questions
Question 1.
How do you classify entrepreneurs?
Answer:
Entrepreneur as a Risk Bearer:~ Richard Cantillon
- The Entrepreneur to be a person who assumes risk inherent in the venture started by him.
- He is act as an agent combining all factors of production to produce a product or service in order to sell at uncertain price in future.
Entrepreneur as an Organiser: ~Jean Baptize
Entrepreneur is one who brings together various factors of production and creates an entity to produces product or service and supervises and co-ordinates several functions in the process.
Entrepreneur as an Innovator: ~Joseph A. Schumpeter
- Entrepreneur is one who
- Introduces a Brand New product in the Market.
- Institutes New Technology to produce a product.
- Discovers new course of supply of raw materials.
Question 2.
What are the characteristics of an entrepreneur?
Answer:
Characteristics of an Entrepreneur:
1. Spirit of Enterprise: Entrepreneur should be bold enough to encounter risk arising from Elements of Entrepreneurship 145 the venture undertaken.
2. Self-confidence: Entrepreneur should have self-confidence in order to achieve high goals in the business.
3. Flexibility: Entrepreneur should not doggedly stick to decisions in a rigid fashion.
4. Innovation: Entrepreneur should contribute something new or something unique to meet the changing requirements of customers namely new product, new method of production or distribution, adding new features to the existing product, uncovering a new territory for business, innovating new raw material, etc.
5. Resource Mobilisation: Entrepreneur should have the capability to mobilise both tangible inputs like manpower, money materials, technology, market, method etc., which are scattered over a wide area and certain intangible inputs like motivation, morale and innovativeness.
Question 3.
Distinguish between an Entrepreneur and an Intrapreneur.
Answer:
Question 4.
Discuss the problems faced by Women Entrepreneurs.
Answer:
There is a tremendous growth in the women entrepreneurship in India. But there are certain problems met by women entrepreneurs.
They are as follows:-
- Problem of Finance: The external sources of funds for the women is limited because they do not generally own properties in their own name. They are depending on their own savings and loan from friends and relatives.
- Lack of Education: Illiterate and semi-literate women entrepreneurs face difficulties in respect of accounts, money matters, marketing and day-to-day operations.
- Lack of Network Support: The success of business depends on the support of family members, friends and relatives. But it is reported that the women entrepreneurs get very limited support in times of crisis.
- Stiff Competition: They have to face acute competition for their goods from organised sector and from their male counterparts.
- Lack of Information: The lack of knowledge or limited knowledge about subsidies, concessions and incentives given by Government will affect the business.
Question 5.
Explain in detail the various functions of an entrepreneur.
Answer:
The functions of an entrepreneur is divided into
(a) Promotional functions,
(b) Managerial functions
(c) Commercial functions.
(a) Promotional functions:
(i) Discovery of Idea: The first and foremost function of entrepreneur is idea generation. A person may conceive his own ideas or develop the ideas contributed by others. Ideas can be generated through several ways like own experience and exposure of entrepreneur, keen observation of environment, education, training, market survey, environmental scanning and so on.
(ii) Detailed Investigation: Entrepreneur should investigate commercial feasibility of the product proposed to be produced and conduct market study to ascertain the potential demand for the product.
(iii) Mobilisation of funds: Entrepreneur has to take steps to mobilise capital needed to implement the venture. Entrepreneur has to estimate the fixed capital and working capital required for running the project.
(b) Managerial functions:
(i) Planning: In this function, the entrepreneur has to lay down the objectives, goals, vision, mission, policies, procedures, programmes, budget, schedules etc., for enabling the venture to proceed towards established destinations.
(ii) Directing: In this function, the entrepreneur has to motivate, lead, guide and communicate with subordinates on an ongoing basis in order to accomplish pre-set goals.
(c) Commercial functions:
(i) Production or Manufacturing: Under production function, entrepreneur has to take decision relating to selection of factory site, design and layout, type of products to be manufactured, research and development.
(ii) Accounting: Entrepreneur has to arrange to prepare trading and profit and loss account in order to know the profit or loss incurred out of operation of the business and prepare balance sheet to know the financial status of business.
TN 12th Commerce Solutions Chapter 23 Elements of Entrepreneurship Additional Questions and Answers
I. Choose the Correct Answer
Question 1.
Section ……………………….. defined the promissory Note.
a) 10
b) 15
c) 4
d) 6
Answer:
c) 4
Question 2.
Grace days allowed to a Bill of exchange for calculation of due date is
(a) 4
(b) 10
(c) 3
(d) 5
Answer:
(c) 3
II. Very Short Answer Questions
Question 1.
What are forms of LPG?
Answer:
Form of Liberalisation (FIL):
Freedom for Expansion: The industries are free to decide their production limits by their own on the basis of the requirement of the markets.
Investment Limit:
The investment limit of the small scale industries has been raised to a crore
Liberalization of Export and Import:
By simplifying the procedures for Imports and Exports the Government wanted to permit the inflow of Goods and Services, capital, HR, and technology.
Question 2.
What are the forms of Globalisation?
Answer:
Forms of Globalization:
- Foreign trade policy
- Export promotion
- Freedom to repatriate
- Reduction in tariffs
- Encouraging open competition
III. Short Answer Questions
Question 1.
What are the Advantages and Disadvantages of Globalisation?
Answer:
Advantage: (TIER)
- Technological Development: Technological advancement paves way for a company to enter a foreign market.
- Increase in foreign: It increases the foreign collaboration such as joint venture collaboration merger -Franchise etc.
- Expansion of market: ‘The operation of business moves from national to international.
- Reduction in Brain Drain: It paves, way for employment opportunities in the home country and utilise the manpower efficiently.
DisAdvantages (DIL)
- The dominance of Foreign Institution: Economic powers shifted from independent industries to foreign institutions which is a threat to national sovereignty.
- Increase inequalities: It widens the gap between rich and poor.
- Loss of domestic industries: It causes a decline in the demand for domestic, products.
TN 12th Commerce Guide Book Back Answers
TN 12th Commerce Book Back Answers
Unit 1 Management Process
- Chapter 1 Principles of Management
- Chapter 2 Functions of Management
- Chapter 3 Management By Objectives (MBO) and Management By Exception (MBE)
Unit 2 Financial Markets – I
Unit 3 Financial Markets – II
Unit 4 Human Resource Management
- Chapter 9 Fundamentals of Human Resource Management
- Chapter 10 Recruitment Methods
- Chapter 11. Employee Selection Process
- Chapter 12 Employee Training Method
Unit 5 Elements of Marketing
- Chapter 13 Concept of Market and Marketer
- Chapter 14 Marketing and Marketing Mix
- Chapter 15 Recent Trends in Marketing
Unit 6 Consumer Protection
Unit 7 Business Environment
Unit 8 The Sale of Goods Act, 1930 and The Negotiable Instruments Act, 1881
Unit 9 Entrepreneurship Development
- Chapter 23 Elements of Entrepreneurship
- Chapter 24 Types of Entrepreneurs
- Chapter 25 Government Schemes for Entrepreneurial Development
Unit 10 Company Law and Secretarial Practice
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