Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Commerce Guide Pdf Chapter 23 Elements of Entrepreneurship Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 12th Commerce Solutions Chapter 23 Elements of Entrepreneurship

12th Commerce Guide Elements of Entrepreneurship Text Book Back Questions and Answers

I. Correct the Answers

Question .1
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:
c) Employee

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

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

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 5.
Which of the below is a commercial function?
a) Accounting
b) Coordination
c) Discovery of idea
d) Planning
Answer:
a) Accounting

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

II. Very Short Answer Questions.

Question1.
Mention any two features of entrepreneurs(FISH)
Answer:
Features of Entrepreneurs:

  1. Spirit of Enterprise: The entrepreneur should be bold enough to encounter risk arising from the venture undertaken.
  2. Self Confidence: An entrepreneur should have self-confidence in order to achieve high goals in the business.

Question 2.
List down the managerial functions of entrepreneurs. [PDO] [CC]
Answer:

  • Planning
  • Directing
  • Organising
  • Controlling
  • Co-ordination

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 3.
List down the promotional functions of entrepreneurs. [DD-DM]
Answer:

  • Discovery of Idea
  • Determining the business objectives
  • Detailed Investigation
  • Choice of form of enterprise
  • Fullfillment of the formalities
  • Preparation of Business Plan
  • Mobilisation of funds
  • Procurement of Machines and Materials

Question 4.
What is meant by Intrapreneur?
Answer:

  • Intrapreneur is one who thinks and acts like an Entrepreneur for the development of firm during the course of employment (appointed) in an organisation.
  • He is described to be an Inside [Employee] Entrepreneur who are assigned to a particular project or work on a special idea without any risk to him.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 5.
List the challenges faced by the women entrepreneurs
Answer:
There is tremendous growth in the women entrepreneurship in India. But there are certain problems met by women entrepreneurs. They are as follows:-

  1. 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 small loans from friends and relatives.
  2. Lack of Education: Illiterate and semi-literate women entrepreneurs face difficulties in respect of accounts, money matters, marketing and day-to-day operations.
  3. 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.
  4. Stiff Competition: They have to face acute competition for their goods from organised sector and from their male counterparts.
  5. Lack of Information: The lack of knowledge or limited knowledge about subsidies, concessions and incentives given by Government will affect the business.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

III. Short Answer Questions

Question 1.
Define Entrepreneur.
Answer:
“The purposeful activity of an individual or group of associated individuals, undertaken to initiate, maintain or earn profits by production and distribution of economic goods and services” – A.H. COLE

Question 2.
Distinguish between entrepreneur and Manager. [MRS]
Answer:

No. Basis of difference

Entrepreneur

Manager

1. Motive Motive of Entrepreneur is to start a business by setting of an entity Motive of Manager is to – render service in entity setup for the execution of the business.
2. Rewards He is rewarded by profit which is uncertain He is awarded by salary – Bonus – Allowances which are certain
3. Status He is the owner of the entitiy. He is a salaried employee in the entity.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 3.
List down the commercial functions of Entrepreneur and explain them shortly.
Answer:

  • Manufacturing
  • Accounting
  • Marketing
  • Financing
  • Human. Resource Management

Manufacturing:
Entrepreneur has to take deci1ons relating to seiectìon of the factory site, Pesigñ, Layouts types añd design of products to be manufactured.

Accounting:

  • He has to arrange to prepare Iradmg A-c. Profit & Loss A/c to know the profit and Balance sheet to know the financial position on a particular date.
  • prepare Cash How and Pund How statements to ensure the adequacy of funds to meet working

Marketing:
The has to carryout the marketing functions like consumer Research, Planning of product. Price, Packaging, Promotion etc.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 4.
Explain the promotional functions of Entrepreneur.
Answer:
(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) Determining the business objectives: Entrepreneur has to develop business objectives in the backdrop of nature of business and type of business activity i.e. nature of business, manufacturing or trading, type of business organisation chosen so that he/she can organise the venture in accordance with the objectives determined by him/her.

(iii) 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.

(iv) Choice of form of enterprise: Entrepreneur has to choose the appropriate form of organisation suited to implement the venture. There are various forms of organisation namely sole proprietor, partnership, company and co-operatives etc. which are in existence.

(v) Fulfilment of the formalities: Having chosen the appropriate type of organisation, entrepreneur has to take necessary steps to establish the form of organisation chosen. As regards sole trader, the formalities are barest minimum. In the case of partnership firm, entrepreneur has to arrange for partnership deed and he has to get the deed registered.

(vi) Preparation of Business Plan: Entrepreneur has to prepare a business plan or project report of the venture that he is proposing to take up.

(vii) 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.

(viii) Procurement of Machines and Materials: Entrepreneur has to locate the various sources of supply of machineries, equipments and materials.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

IV. Long Answer Questions

Question 1.
How do you Classify entrepreneurs?
Answer:
Entrepreneurs are now broadly classified into three groups namely risk bearer, organiser and innovator.

1. Entrepreneur as a risk bearer : Entrepreneurs acts as an agent combining all factors of production to produce a product or service in order to sell at uncertain price in future.

2. Entrepreneur as an organiser : Entrepreneur is one who brings together various factors of production and creates an entity to produce product or service and supervise and coordinates several functions in the process.

3. Entrepreneur as an innovator : According to Joseph A. Schumpeter in the year 1934 used innovation as a criterion to define an individual as entrepreneur. According to him, entrepreneur is one who

    • Introduces a brand new product in the market.
    • Institutes new technology to produce a new product.
    • Discovers new course of supply of raw materials.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 2.
What are the characteristics of an entrepreneur? [S. SHARIF]
Answer:

Spirit of Enterprise:

  • Entrepreneur should be bold enough to encounter risk arising from the venture undertaken.
  • He should not be discouraged by setbacks or frustrations emerging during the course of entrepreneurial journey.

Self Confidence:
Entrepreneur should have a self confidence in order to achieve high goal in the business.

Hard Work:
Entrepreneur’ should put in great efforts and constant endeavours to accomplish the goals of the venture successfully.

Analytical Ability:
Entrepreneur should be-able to objectively analyse the situation and act accordingly.

Resources Mobilisation:
Entrepreneur should have the capability to mobilise both tangible |man power, materials, markets etc.I and intangible [motivation, morale etc.] inputs to produce a product successfully.

Innovation:
He should contributing something new or something unique to meet the changing requirements of – customers [New product – New method of production etc.]

Flexibility:
He should not be rigid and flexible in decisions.
He should change the decisions made already in the light of ever- changing business environment.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 3.
Distinguish between an Entrepreneur and an Intrapreneur. D FORTS
Answer:

No. Basis of difference

Entrepreneur

Intrapreneur

1. Dependency He is an independent Person. He is a dependent person.
2. Fund Mobilisation He has to mobilize funds to finance the venture. He does not engage in fund mobilization. But can access fund mobilized by Entrepreneur
 3.Operation He operates mostly outside the enterprise. He operates with in the enterprise
4.Rewards

 

He is rewarded by Profit He is rewarded by salary -Bonus -Allowances
5.Thinking

 

He is a free thinker

 

He is forced to think independently but with in the scope of business activities undertaken.
6. Status He is an owner. He is an employee.

Question 4.
Discuss the challenges faced by Women Entrepreneur. [PENSIL]
Answer:
Problem of Finance:

  • The access of women to external sources of funds is limited as they do notgenerally own properties in their own name.
  • Financial institutions too do not consider women in General credit worthy as they are doubtful of their entrepreneurial capabilities of women.

Education – Lack:
Illiterate and Semi-literate women entrepreneurs encounter a lot of challenges in their entrepreneurial journey. [Maintaining Accounts – Money matters – Marketing the product – Applying technology etc.

Network Support – Lack:
The successful operations of any venture irrespective of size depends
upon the network of support extended by various constituencies like family members – relatives – friends – neighbours and so on.

Stiff Competition:
They have to face acute competition for their goods from organised sector and from their male counterparts.

Information – Lack:

  • They are reported not be generally aware of subsidies and incentives available for them due to their poor literacy levels or due to their pre-occupied occupation with house hold responsibilities.
  • The Domestic responsibilities do not allow women entrepreneurs to freely move out of business enterprise in connection with business activities.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 5.
Explain in detail the various functions of an entrepreneur.
Answer:
Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship 1

Promotional – Functions: MD
Mobilisation of Funds:
Entrepreneur has to take steps to mobilise funds fromvarious channels like own funds, Borrow from Relatives, Banks, Financial Institutions etc.

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.

Managerial – Functions: PDO
Planning:
Entrepreneur has to lay down the objectives, Goals, Vision, Mission, Policies, Procedures, Programmes etc. to reach the destination.

Directing:
He has to motivate, Lead, Guide and communicate with subordinates on an ongoing basis in order to accomplish pre-set goals.

Organising:
He puts in place suitable organisational structure to perform various managerial functions, [choosing – Type of organisation- creating Departments – Fitting HR.]

Commercial – Functions: MM
Manufacturing:
Entrepreneur has to take decisions relating to – selection of factory site, Design, Layout, Types and Design of product to be manufactured.

Marketing:
He has to carryout the marketing Functions like consumer Research, Planning of product, Price, Packing, – Promotion etc.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

12th Commerce Guide Elements of Entrepreneurship Additional Important Questions and Answers

I. Choose the Correct Answers

Question 1.
According to Richard Cantillon Entrepreneur as a ………………
a) Risk Bearer
b) Innovator
c) Organiser
d) Creditor
Answer:
a) Risk Bearer

Question 2.
According to Jean Baptize Entrepreneur as an ……………..
a) Risk Bearer
b) Innovator
c) Organiser
d) Debtor
answer:
c) Organiser

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 3.
According to Joseph A. Schumpeter Entrepreneur as an ……………..
a) Risk Bearer
b) Innovator
c) Organiser
d) Owner
Answer:
b) Innovator

Question 4.
………………….. is one who thinks and acts like an Entrepreneur for the firm’s development during the course of employment in an organisation.
a) Intrapreneur
b) Entrepreneur
c) Proprietor
d) Director
Answer:
a) Intrapreneur

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 5.
Pick the odd one out:
a) Planning
b) Organising
c) Directing
d) Marketing
Answer:
d) Marketing

Question 6.
Pick the odd one out:
a) Accounting
b) Finance
c) Human Resource Management
d) Controlling
Answer:
d) Controlling

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 7.
Which one of the following is not correctly matched?
a) CWEI – Consortium of Women Entertainment of India.
b) DWCRA – Development of Women and Children in Rural Areas.
c) SHG – Self Help Groups
d) SEWA – Self Employed Womens Association
Answer:
a) CWEI – Consortium of Women Entertainment of India.

Question 8.
Which one of the following is not correctly matched?
a) FIWE – Federation of Indian Women Entrepreneurs
b) WIT – Womens India Trade
c) WEPA – Women Entrepreneurs Promotion Association
d) WEAT – Women Entrepreneurs Association of Tamilnadu
Answer:
b) WIT – Women’s India Trade

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 9.
Choose the correct statement
i) Entrepreneur is a free thinker.
ii) Entrepreneur is an independent person.
iii) He operates mostly in side the enterprise.
a) (i) is correct
b) (i) and (ii) are correct
c) (i), (ii) and (iii) are correct
d) (i) and (ii) are correct (iii) is not correct
Answer:
d) (i) and (ii) are correct (iii) is not correct

II. Match

Question 1.

List -I

List – II

i Innovator 1. Magalir Udavi Scheme
ii Organiser 2. J.A. Schumpeter
iii Risk Bearer 3. Jean Baptize
iv Women Entrepreneur 4. Richard Cantillon

a) i-2, ii-3, iii-4, iv-1
b) i-4, ii-2, iii-1, iv-3
c) i-3, ii-1, iii-2, iv-4
d) i-1, ii-4, iii-3, iv-2
Answer:
a) i-2, ii-3, iii-4, iv-1

Question 2.

 List -I

List – II

i Planning 1. Women and Children Development
ii Marketing 2. Promotional Function
iii Procurement 3. Commercial Function
iv DWCRA 4. Managerial Function

a) i-4, ii-3, iii-2, iv-1
b) i-4, ii-2, iii-3, iv-1
c) i-4, ii-1, iii-2, iv-3
d) i-4, ii-2, iii-1, iv-3
Answer:
a) i-4, ii-3, iii-2, iv-1

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

III. Assertion and Reason

Question 1.
Assertion (A) : Entrepreneur should be bold enough to encounter risk arising from the venture undertaken.
Reason (R) : He should not get discouraged by set backs or frustrations emerging during the course of entrepreneurial journey.
a) (A) and (R) are True. (R) is the correct explanation of (A)
b) (A) and (R) are False.
c) (A) and (R) are True. (R) is not the correct explanation of (A)
d) (A) is True (R) is False
Answer:
a) (A) and (R) are True. (R) is the correct explanation of (A)

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

IV. Very Short Answer Questions

Question 1.
List the Classification [Concept] of Entrepreneur. [ROI]
Answer:

  • Risk – Bearer – Richard Cantillon
  • Organiser – JeanBaptize
  • Innovator – J.A. Schumpeter

Question 2.
Define Woman Entrepreneur.
Answer:
“Woman who innovate, imitate or adopt a business activity are known as woman Entrepreneurs”. – J.A. SCHUMPETER

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

V. Short Answer Questions

Question 1.
What are the opportunities based on Business to Woman Entrepreneur?
Answer:

  • Manufacturing Industries: Garments – Agarbathi – Pickles – Embroidery – Sweet Stall etc.
  • Service Industries: Catering – Creche – Computer Centres etc.
  • Trading venture: Grocery stores – Hostel – Photo Studio etc.
  • Highly Educated: Hospitals – diagnostic Centres etc.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 2.
What are Non-Financial supports to Woman Entrepreneurs? [HOLES B]
Answer:

  • Handling Legal Barriers
  • Offering and Designing the products based on their needs. –
  • Lower Rate of Interest
  • Establishing commercial linkages
  • Simplified processing system
  • Business advisory service

Question 3.
What are the opportunities created by Associations to Women Entrepreneurs? [WWW] [SSS]
Answer:

  • WIT ~ Women’s India Trust
  • WEAT ~ Women Entrepreneurs Association of Tamilnadu
  • WEPA ~ Women Entrepreneurs Promotion Association
  • SHG ~ Self Help Groups
  • SIDO ~ Small Industries Development Organisation
  • SEWA ~ Self Employed Womens’ Association

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 5.
What are opportunities created by the Government to Women Entrepreneurs? [SM] [MUM]
Answer:

  • Standup India
  • Mahila E – haat
  • Magalir Udavi Scheme
  • Udyogini Scheme
  • Mahila Coir Yojana

Question 6.
What are the opportunities created through [NSS DDS]
Answer:

  • NSIC – National Small Industries Corporation
  • STEP – Step to Training and Employment Programme (for women)
  • SISI – Small Industry Service Institutes.
  • DIC – District Industrial Centres
  • DWCRA – Development of Women and Children in Rural Areas.
  • SFC – State Finance Corporation.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 7.
What are the Functions of Consortium of Women Entrepreneurs of India [CWEI]
Answer:

  • It is acting as a spring board for enterprises started by women.
  • It helps women to achieve high economic empowerment.
  • It provides technological support to women owned enterprises.
  • It spreads knowledge to women about various Government shcemes.
  • It provides support to Quality Control and Marketing of Women owned enterprises.
  • It acts as a catalyst to improve the access of women folk to natural resources.

VI. Long Answer Questions

Question 1.
Explain the commercial functions of entrepreneur. [MAM] [HE]
Answer:
1. Manufacturing:
Manufacturers has to take decisions relating to selection of factory site, Design, Layout, types and design of products to he manufactured.

2. Accounting:
He has to arrange to prepare Trading A/c, Profit & Loss A/c to know the profiL and Balance sheet to know the financial position on a particular date.

3.Marketing:
He has to carryout the marketing functions like consumer Research, Planning of product, Price, Packaging, Promotion etc.

4. Human Resource Management:
He has to estimate the man power needs of the enterprise and accordingly decide the si/e of manpower required for various slots of organisational structure.

5. Financing:
He has to choose right type of financing, framing the best dividend policy, efficiently managing fixed and current assets and investing funds efficiently and effectively.

Samacheer Kalvi 12th Commerce Guide Chapter 23 Elements of Entrepreneurship

Question 2.
Discuss the Importance of Entrepreneurship. [B – RICE]
Answer:
Balanced Regional Development:
Encouragement of Entrepreneurship in under developed and Undeveloped regions ol a country through various incentives and concessions is more likely to promote Balanced Regional Development across the country.

Reduce Concentration of Economic Powers in few hands:
Promotion of Entrepreneurship by encouraging MSMEs prevents economic power in the hands of few large entrepreneur.

Innovation:

  • Entrepreneurship and Innovation are closely inter-twined with each other.
  • It is no exaggeration to say that Innovation cannot happen in any country without entrepreneurship.

Contribution to GDP:
Promotion of Entrepreneurship all across the country would undoubtedly add to Gross Domestic Product and National Income of a country.

Export Promotion:
If Entrepreneurship is encouraged to produce Export oriented goods, it can significantly add to foreign Exchange Reserve of a country.