12th OCM Chapter 3 Exercise Solutions (Entrepreneurship Development) Maharashtra Board – Free Resource

12th OCM Chapter 3 Exercise Solutions

12th OCM Chapter 3 Exercise Solutions
Chapter 3 - Entrepreneurship Development
12th OCM Chapter 3 Exercise Solutions

Chapter 3 – Entrepreneurship Development

Q.1 A) Select the correct option and rewrite the sentences.

1) The word ‘entrepreneur’ is derived from the _____ word ‘entreprendre’.
a) Japanese
b) English
c) French

2) ‘Entreprendre’ means to _____.
a) Undertake
b) Enterprise
c) Businessman

3) Start Up India is an initiative of the _____.
a) RBI
b) Government of India
c) World Bank

4) _____ is the idea of bringing urban residents to rural areas, by empowering to local communities, both socially and economically.
a) Agro tourism
b) Medical tourism
c) Entertainment

Q.1 B) Match the correct pairs.

Group AGroup B
a) Gap filling function 1) 2016
b) Entrepreneur2) Employment
c) Agro tourism3) Old methods of production
d) Technology4) 2019
e) Startup India5) Self motivated
6) Rural tourism
7) Entrepreneurship
8) Latest knowledge
9) Necessity Based
10) Medical tourism

Answers.
a. 7) Entrepreneurship
b. 5) Self-motivated
c. 6) Rural tourism
d. 8) Latest knowledge
e. 1) 2016

Q.1 C) Give one word/phrase/term for the following statements.

1) An undertaking or adventure involving uncertainty and risk and requiring innovation.
Answer:
Entrepreneurship

2) A function of creating something new for economic activity.
Answer:
Innovation

3) A person who is an innovator who introduces new combinations of means of production.
Answer:
Entrepreneur

4) The process of enhancing entrepreneurial skills and knowledge through structured training and institution-building programmes.
Answer:
Entrepreneurship Development programme

5) The process that motivates a person into action and induces him to continue the course of action for the achievement of goals.
Answer:
Entrepreneurship

6) An employee who has the authority and support of the organization to implement his creative ideas.
Answer:
Intrapreneur

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Q.1 D) State whether the following statements are true or false.

1) An entrepreneur should not be ready to work hard. (False)
2) Agrotourism can support agricultural economy. (True)
3) Successful businessman takes calculated risks. (True)
4) Entrepreneurship is a full-time job that requires dedication and hard work. (True)
5) Startup India is an initiative of the Government of France. (False)

Q.1 E) Find the odd one out.

1) Communicator, Innovator, Self-starter, Inactive.
2) Trekking, Wildlife study, Horseback riding, Indoor games.
3) Innovation, Lack of communication, Development of market, Determining the objectives.

Q.1 F) Complete the sentences.

1) An entrepreneur is a person who starts a Business/ Enterprise.
2) ‘Start-up’ India initiative was launched in 2016.

Q.1 G) Select the correct option.

Group A Group B
1) The idea of bringing Urban residents to agricultural farmAgrotourism
2) Agro-tourism is a form ofNiche tourism
3) InnovationTo introduce new combination of products & features
4) EntrepreneurshipA full-time job that requires, dedication & Hard-work.

Q.1 H) Answer in one sentence.

1) What is Agro tourism?
Answer:
Agro tourism is the idea of bringing urban residents to rural areas for leisure travel and spending.

2) Who is ‘Entrepreneur’?
Answer:
An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”.

3) Who described ‘Entrepreneurship’ as the founding of a private enterprise?
Answer:
The famous economist John Stuart Mill described ‘Entrepreneurship’ as the founding of a Private enterprise.

Q.1 I) Correct the underlined word and rewrite the following sentences.

1. The word ‘Entrepreneur’ comes from the German verb entreprendre, it means to undertake.
Answer: French

2. Entrepreneurs try to make homes a better place where the needs of consumers can be satisfied.
Answer: Market

3. The loan taken under stand-up India scheme is repayable in ten years.
Answer: Seven

Q.2 Explain the following terms/concepts.

1) Entrepreneur
Answer:
An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”. Entrepreneurs are the people who have the courage to offer and to share an idea or a product or a service with the world. They try to make market a better place where the needs of consumers can be satisfied.

2) Agro-tourism
Answer: Agro tourism offers tourists a chance to reconnect with the land and provides a “hands-on experience” with local foods. Agritourism activities include picking fruits, tending bees, milking cows, and other educational pursuits.

3) Start-ups
Answer:
A start-up is defined as an entity having its headquarters in India, which was opened less than 10 years ago and has an annual turnover of less than Rs.100 crores.
Start-up India is an initiative of the Government of India. It was launched in 2016. It aims at building an ecosystem which will nurture start-ups in the country.

4) Stand-ups
Answer: The objective of the Stand-Up India scheme is to facilitate bank loans between Rs.10 lakh and Rs.1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in the manufacturing, services or trading sector. In case of nonindividual enterprises, at least 51 % of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.

5) Intrapreneur
Answer: An intrapreneur is an employee who has the authority and support of his company/employer to implement his own innovative and creative ideas. His idea or product may or may not earn immediate revenue for the company. Still, the employee keeps receiving his salary.
Intrapreneurs are the dreamers who take hands-on responsibility for creating innovation of any kind, within a business.”

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Q.3 Study the following case/situation and express your opinion.

Mr. Soham is a young MBA degree holder, Mr. Navin is a B.Com graduate. Mr. Soham is willing
to start a dairy farm at his village. Mr. Navin is willing to work as a cashier in a Private Company.
i) Find out the dream of Soham and Navin.
ii) State anyone feature of Entrepreneur.
iii) To become a successful entrepreneur, which qualities Mr. Soham should have?

Answer:
1) Dream of Soham is to become an entrepreneur and Navin’s dream is to do a job in a private company.
2) An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”.
3) To become a successful entrepreneur, Mr. Soham should have qualities like an innovator, creator, reactive, and risk bearer.

Q.4 Answer in brief.

1) Define entrepreneur. Explain functions of entrepreneur.

Answer:
An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”. Entrepreneurs are the people who have the courage to offer and to share an idea or a product or a service with the world. They try to make market a better place where the needs of consumers can be satisfied.

Functions of Entrepreneur

1) Innovation

An entrepreneur is basically an innovator. He introduces new combinations of means of production. He must introduce new products or bring changes in the existing products. Customers are satisfied with new products or new features in the existing products. Innovation is also necessary to solve problems that arise in the business.

2) Determination of Objectives

An entrepreneur has to determine the aims and objectives of the business. There may be difference between primary and secondary objectives of the enterprise. He can change these objectives as per the market situation.

3) Development of Market

The entrepreneur has to find out different ways for marketing the products and services of his enterprise. He can conduct surveys or research to understand the customer’s demand. When the markets are developed constantly, the demands of the consumers will increase.

4) New Technology

In a global world, everyday there is an invention of new technology. Introduction of new technology will always result in growth of business e.g. new machinery, advanced technology, new and scientific methods of production, etc.

5) Good Relations

It is necessary to maintain healthy working atmosphere in an organization. It depends upon the efficient relations between subordinates and superiors. Coordination among the employees is the key of success.

2) Define entrepreneur. Explain the qualities of a successful entrepreneur.

Answer:
An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”. Entrepreneurs are the people who have the courage to offer and to share an idea or a product or a service with the world. They try to make market a better place where the needs of consumers can be satisfied.

1) Disciplined

These individuals are focused on making their businesses work, and eliminating any hindrances or distractions to their goals. An entrepreneur has comprehensive strategies and outline the tactics to accomplish them. Successful entrepreneur is disciplined enough to take steps every day towards the achievement of his objectives.

2) Confidence

The entrepreneur does not ask questions about whether he can succeed or whether he is worthy of success. He is confident with the knowledge that he will make his businesses succeed. He shows confidence in everything he does.

3) Open Minded

Entrepreneur realizes that every event and situation is a ‘business opportunity. Ideas are constantly being generated about workflows and efficiency, people skills, and potential new businesses. He has the ability to look at everything around him and focuses it towards his goals.

4) Self Starter

An entrepreneur knows that if something needs to be done he should start it himself. He sets the parameters and makes sure that projects follow that path. He is proactive, not waiting for someone to give him permission.

5) Competitive

Many companies are formed because an entrepreneur knows that he can do a job better than others. He needs to win the game of business. An entrepreneur will highlight his own company’s track record of success. 

6) Creativity

One aspect of creativity is being able to make connections between seemingly unrelated events or situations. Entrepreneur often comes up with solutions which are the synthesis of other items. He will repurpose products to market them to new industries.

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Q.5 Justify the following statements.

1) Entrepreneurship is the best source for self-employment.

Answer:
1) Intellectual Capabilities
An entrepreneur is a creative thinker. He has reasonably good intelligence. He has ability to analyze business situations. This ability will help him to take proper decisions.

2) Future Vision
The entrepreneur has a good foresight about future market situation. He should also have knowledge about external business environment. This will help him to take proper decisions according to the situations and changes in the market. So, he can take timely action for the same.

3) Technical Knowledge
An entrepreneur has good technical knowledge about his business. The entrepreneur has the ability to update himself with the latest knowledge about the product, process and technology.

4) Risk bearing capacity
A successful entrepreneur takes calculated risks. He is ready to face challenges and always seeks new and more opportunities.
Thus, Entrepreneurship is the best source of self-employment.

2) Successful businessman takes calculated risk.

Answer:
a) He is ready to face challenges and always seeks new and more opportunities.
b) An entrepreneur has self-confidence. He has positive desires to achieve his goals.
c) Passion is the most important trait of a successful entrepreneur. He genuinely loves his work. 
d) He is willing to put in those extra hours to make the business succeed because there is a joy his business gives which goes beyond the money.
e) The successful entrepreneur will always be reading and researching ways to make the business better.
Thus, a successful businessman takes a calculated risk.

3) Entrepreneurs must be good communicators.

Answer:
a) An entrepreneur needs to communicate with different people like customers, suppliers, creditors, employees, etc.
b) He must be able to express his ideas and strategies effectively.
c) It is necessary that there is a proper understanding between the sender and the receiver of the message.
d) It is one of the qualities of a good entrepreneur.
Thus, Entrepreneur must be a good communicator.

4) An entrepreneur must be an innovator.

Answer:
a) An entrepreneur is basically an innovator. He introduces new combinations of means of production.
b) He must introduce new products or bring changes to the existing products. 
c) Customers are satisfied with new products or new features in the existing products.
d) Innovation is also necessary to solve problems that arise in the business.
Thus, an entrepreneur must be an innovator.

5) With creativity, farmers can expand their Agro-tourism Business.

Answer:
Agro tourism is the new concept in the industry of the Indian tourism, it provides the opportunity to the tourists to experience authentic contact with life in rural areas.

The valuable activities, which the farmers could do creatively are:

i) Outdoor recreation (Trekking, fishing, hunting, wildlife study, horseback riding). 
ii) Educational experiences (farming experiences like Rice plantation, cooking experience on chulha).
iii) Entertainment (harvest festivals like ‘Hurda Party’ in Maharashtra).
iv) Hospitality services (farm stays, guided tours or outfitter services).
v) On-farm direct sales (u-pick operations or roadside stands).

With time and creativity, farmers can expand their recreation enterprise, through fun, entertaining activities such as contests, adult and children’s classes, or games. 

Q.6 Attempt the following.

1) Explain the characteristics of Enterpreneurship Development.

Answer:
Characteristics of Entrepreneurship Development:

1) Innovation

Entrepreneurship is an innovation. The introduction of new combination of various factors of productions is innovation. In view of changing taste of consumers from time to time, entrepreneurship focuses on the research and development to produce goods to satisfy the customers.

2) Economic activity

An entrepreneur produces a new product for the customers as per their needs. He feels the need of this to satisfy human wants and as well in exchange earn a better livelihood. Hence entrepreneurship is an economic activity.

3) Organization Building

It is an activity where various factors of production have to be organized. Place utility, time utility, form utility etc. has to be considered to collect them under one roof for new production.

4) Creative activity

Innovation should have strong support of creativity. Introducing creativity in producing something new is a big challenge for the entrepreneur. Thus creativity is an essential part of entrepreneurship.

5) Skillful management

The success of any entrepreneurship depends on the management of the organization. With professional management and skilled managers, entrepreneurship becomes successful activity.

6) Gap filling function

The most significant feature of entrepreneurship is gap filling. It is the entrepreneur’s job to fill the gap or make up the deficiencies that always exist in the knowledge about the production function.

2) What is Entrepreneurship Development Program?

Answer:
Entrepreneurship Development Program

An entrepreneurship development programme has been defined as ‘a programme designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role efficiently’. 

EDP is a device through which people with latent entrepreneurial traits are identified, motivated to take up new industrial venture, trained in managing the unit and guided in all aspects of starting a venture/an enterprise.

EDP was first introduced in Gujarat in 1970 and was sponsored by the Gujarat Industrial Investment Corporation. The EDP’s are based on McClellands experiments in Kakinanda District of Andhra Pradesh where businessmen were provided with motivation and training.

The EDP includes following steps:
1Arrangement of Infrastructure.
2Selection of potential entrepreneur.
3Identification of enterprise.
4Actual training program
5Selection of training personnel.
6Selection of a method of training.
7Actual training.
8Monitoring and follow-up.

Objectives of EDP:
The following objectives of EDP are identified.
1To foster entrepreneurial growth in the country.
2Optimum use of available resources.
3Development of backward regions and improving economic status of socially disadvantaged groups.
4Generation of employment opportunities.
5Widening base for small and medium scale industries.

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Q.7 Answer the following.

1) Define entrepreneur. Explain the characteristics of entrepreneurs.

Answer:
An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”. Entrepreneurs are the people who have the courage to offer and to share an idea or a product or a service with the world. They try to make market a better place where the needs of consumers can be satisfied.

Characteristics of Entrepreneur:

1) Intellectual Capabilities

An entrepreneur is a creative thinker. He has reasonably good intelligence. He has the ability to analyze business situations. This ability will help him to take proper decisions.

2) Future Vision

The entrepreneur has good foresight about future market situations. He should also have knowledge about the external business environment. This will help him to take proper decisions according to the situations and changes in the market. So, he can take timely actions for the same.

3) Hard Work

An entrepreneur is ready to work hard. It is more necessary when a new venture is started. He has to work for long hours. Many a times he has to handle the main areas of business independently. This will make him successful.

4) Technical Knowledge

An entrepreneur has good technical knowledge about his business. The entrepreneur has the ability to update himself with the latest knowledge about the product, process and technology.

5) Communication Skills

An entrepreneur needs to communicate with different people like customers, suppliers, creditors, employees, etc. He must be able to express his ideas and strategies effectively. It is necessary that there is a proper understanding between the sender and the receiver of the message.

6) Highly Optimistic

An entrepreneur has to always think positively. He is always hopeful and confident about the market situation even in failure times. Such positive attitude helps him to run his business successfully.

7) Risk-bearing capacity

A successful entrepreneur takes calculated risks. He is ready to face challenges and always seeks new and more opportunities.

8) Self Confidence

An entrepreneur has self-confidence. He has a positive desire to achieve his goals. Such self-motivation keeps him strong and confident to face various obstacles.

2) Define entrepreneur. Explain its functions.

Answer:
An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”. Entrepreneurs are the people who have the courage to offer and to share an idea or a product or a service with the world. They try to make market a better place where the needs of consumers can be satisfied.

Functions of Entrepreneur

1) Innovation

An entrepreneur is basically an innovator. He introduces new combinations of means of production. He must introduce new products or bring changes to the existing products. Customers are satisfied with new products or new features in the existing products. Innovation is also necessary to solve problems that arise in the business.

2) Determination of Objectives

An entrepreneur has to determine the aims and objectives of the business. There may be differences between the primary and secondary objectives of the enterprise. He can change these objectives as per the market situations.

3) Development of Market

The entrepreneur has to find out different ways for marketing the products and services of his enterprise. He can conduct surveys or research to understand the customer’s demands. When the markets are developed constantly, the demands of the consumers will increase.

4) New Technology

In global world, everyday there is an invention of new technology. Introduction of new technology will always result in growth of business e.g. new machinery, advanced technology, new and scientific methods of production, etc.

5) Good Relations

It is necessary to maintain healthy working atmosphere in an organization. It depends upon the efficient relations between subordinates and superiors. Coordination among the employees is the key to success.

6) Organizing Funds

An entrepreneur needs to find out different financial resources because adequate and continuous finance is always necessary for business. Good and honest relations with the investors is necessary for every business.

7) Taking Decisions

An entrepreneur has to take wise decisions for his enterprise. Timely and correct decisions are also important and necessary for a proper business plan. He should always consider the pros and cons before taking any business decision.

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12th Commerce OCM Textbook Solutions

Chapter Name Solution Link
1) Principles of ManagementClick Here
2) Functions of ManagementClick Here
3) Entrepreneurship DevelopmentClick Here
4) Business ServicesClick Here
5) Emerging Modes of BusinessClick Here
6) Social Responsibilities of BusinessClick Here
7) Consumer ProtectionClick Here
8) MarketingClick Here

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