Important MCQ-Based Questions for class 11 Entrepreneurship chapter-Entrepreneurship and human activities
This page consists of Important MCQ questions from the chapter Entrepreneurship and human activities uploaded as per the CBSE syllabus and consists of a detailed explanation. Questions are prepared from the entire chapter-Entrepreneurship and human activities to give you effective revision.
Find below MCQ-Based Questions for class 11 Entrepreneurship chapter-Entrepreneurship and human activities
Important MCQ-based questions Entrepreneurship class 11 chapter-Entrepreneurship and human activities Set-A
Entrepreneurship - Entrepreneurship And Human Activities
Class XI
Q. 1 The entrepreneur can be viewed as the
(a) coordinator of other production resources.
(b) decision maker under uncertainty.
(c) innovator.
(d) gap filler and input completer.
Answer:
(c)
Explanation: An entrepreneur can be viewed as the innovator as he combines the new products or services and applies his innovation to produce better ideas.
Q. 2 Joseph Schumpeter is the exceptional economist who links the entrepreneur to
(a) oligopolistic capitalism.
(b) resource management.
(c) land and labour.
(d) innovation.
Answer:
(d)
Explanation: Joseph Schumpeter is the exceptional economist who links the entrepreneur to innovation as he believes that entrepreneurship is a process of creative destruction.
Q. 3 The four main categories of resources are
(a) labour, money, capital and inputs
(b) land, capital, labour, natural resources and entrepreneurship
(c) raw materials, money, labour and capital
(d) capital, land, raw materials and entrepreneurship
Answer:
(b)
Explanation: According to Joseph Schumpeter with the advent of the industrial revolution, an entrepreneur has become a separate factor of economy.
Q. 4 Entrepreneurs seem to be characterized by
(a) a desire for money.
(b) an inability to organize b conceptual skills.
(c) a desire to work alone because of weak management skills and a need for control.
(d) a high energy level.
Answer:
(d)
Explanation: Entrepreneurs seem to be characterized by a high energy level as they think of an idea and keep working hard to turn that idea into a profitable business.
Q. 5 A significant benefit of starting your own business is that
(a) one gets more leisure time because there is no need to punch the card.
(b) that it helps one contribute to society and earn profit as well.
(c) to be able to choose the people with whom you want to work.
(d) getting job security.
Answer:
(b)
Explanation: A significant benefit of starting your own business is that the entrepreneur can earn profit and can work for the benefit of the society as well.
Q. 6 “An entrepreneur is the one who avails the land of one, the labour of another and the capital of the third and produces a product to make profit.” This definition is propounded by
(a) Jean Baptiste Say.
(b) Joseph Schumpeter.
(c) Peter Drucker.
(d) Richard Cantillon.
Answer:
(a)
Explanation: Jean Baptiste Say, a French economist, has explained the role of an entrepreneur in an entirely different manner. According to him, through the sale of the product, the entrepreneur compensates the rental value of the land, the wages of the labourers and pays interest on the capital obtained. In addition to all this, he makes his profit.
Q. 7 Launching and running a business by an entrepreneur can be an extremely rewarding experience, but it also can
(a) be great fun.
(b) bring steady paycheck.
(c) be risky.
(d) be expensive.
Answer:
(c)
Explanation: Launching and running a business by an entrepreneur can be an extremely rewarding experience, but it also can be very risky as the future is uncertain. An entrepreneur can not be sure every time that his product or services will fetch him with the same or more amount of profit.
Q. 8 Adam Smith defined an entrepreneur as a person who
(a) acts as an agent in transforming demand into supply.
(b) shifts resources from an area of low productivity to high productivity.
(c) is a prime mover in the private enterprise.
(d) acts as an economic agent and transforms resources into products.
Answer:
(a)
Explanation: Adam Smith defines entrepreneur as an individual, who undertakes the formation of an organization for commercial purposes by recognizing the potential demand for goods and services, and thereby acts as an economic agent and transforms demand into supply.
Q. 9 To be successful, an entrepreneur must produce goods
(a) instead of services.
(b) or services with a high price.
(c) or services, which consumers want.
(d) or services using mostly capital resources.
Answer:
(c)
Explanation: To be successful, an entrepreneur must produce goods and services that consumer wants as he is the one who realizes the needs of the society and meets the needs through his innovative ideas, products and services.
Q. 10 Indra Nooyi is the CEO of
(a) Wipro.
(b) Mittal Steel.
(c) TISCO.
(d) PepsiCo.
Answer:
(d)
Explanation: Indra Nooyi is the newly appointed CEO of PepsiCo-the world's second-largest soft drink maker. She is listed among the selected band of women who head Fortune 500 companies.
Q. 11 One of the examples of a Schumpeterian innovation can be
(a) an existing internet service provider giving competition to two other providers.
(b) the production and marketing of a new Ford car.
(c) the invention of a steamer.
(d) an American buying a stock in the Philippines’ stock market.
Answer:
(b)
Explanation: The production and marketing of a new Ford car is an example of Schumpeterian innovation. According to him, an innovator is concerned with the economic, social and marketing dimensions of the product or service, which he wishes to produce or offer.
Q. 12 An entrepreneur is someone who is willing to
(a) take risk.
(b) act as an economic agent.
(c) invent a product.
(d) commercialize the product.
Answer:
(a)
Explanation: An entrepreneur is someone who is willing to take risk because establishment of any enterprise involves a lot of risk.
Q. 13 An entrepreneur is
(a) the CEO of a company.
(b) the owner of a company.
(c) a self-employed person.
(d) the founder of a company.
Answer:
(c)
Explanation: An entrepreneur is a self-employed person who has possession over a company, enterprise or venture and assumes significant accountability for the inherent risks and the outcome.
Q. 14 Entrepreneurs share their characteristics in terms of skill with
(a) shareholders.
(b) managers.
(c) farmers.
(d) management students.
Answer:
(b)
Explanation: Entrepreneurs share their characteristics in term of skill with managers as just like a manager he has to manage all the resources of his enterprise.
Q. 15 What makes an entrepreneur truly successful is
(a) his creative skills.
(b) his experience.
(c) his cleverness
(d) his selling ability.
Answer:
(a)
Explanation: The creative skills of an entrepreneur make him truly successful as every time an entrepreneur has to apply his creativity to make his enterprise work.
Q. 16 D.H Ambani started his export and import trade in the year
(a) 1955.
(b) 1956.
(c) 1957.
(d) 1958.
Answer:
(d)
Explanation: D.H Ambani started his export and import trade in the year 1958. He sensed this great entrepreneurial opportunity when he was staying in Aden. He started import-export business and trading in commodities-spices and fabrics between India and Aden.
Q. 17 An entrepreneur must start the kind of a business
(a) which has more demand.
(b) which has many competitors.
(c) which involves less investment.
(d) that nobody else does.
Answer:
(d)
Explanation: An entrepreneur must start the kind of a business, which nobody else does. An entrepreneur is the one who thinks of an innovative idea and creates a new product or service.
Q. 18 One can be entrepreneurial by assessing
(a) market.
(b) opportunities.
(c) demand.
(d) supply.
Answer:
(b)
Explanation: One can be entrepreneurial by assessing opportunities present in the environment.
Q. 19 The French word, entrepreneur, derived from the word ‘entreprendre’ means an individual who is a/an
(a) caretaker.
(b) innovator.
(c) undertaker.
(d) marketer.
Answer:
(c)
Explanation: Entrepreneur is a French word derived from the word ‘entreprendre’ which means an individual who “undertook” the risk of new enterprise.
Q. 20 “Entrepreneur is the one who is involved in gathering and using resources to opportunities to produce results.” This definition of entrepreneur is given by
(a) Peter Drucker.
(b) Richard Cantillon.
(c) Mc Clelland.
(d) Adam Smith.
Answer:
(a)
Explanation: Peter Drucker gave this definition of entrepreneur. He says that innovation is a specific instrument of an entrepreneur, and hence an effective entrepreneur converts a source into a resource.
Q. 21 The book “Essai sur la nature de commerce en general” is written by
(a) Peter Drucker.
(b) Richard Cantillon.
(c) Mc Clelland.
(d) Adam Smith.
Answer:
(b)
Explanation: The book “Essai sur la nature de commerce en general” is written by Richard Cantillon. In this book, he has described entrepreneur “as a person who pays a certain price to a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.”
Q. 22 The first step in the process of entrepreneurship is
(a) evaluating ideas.
(b) starting a venture.
(c) self discovery.
(d) start up.
Answer:
(c)
Explanation: The first step in the process of entrepreneurship is self discovery, which means learning what one enjoys doing, examining ones strength and weaknesses, and relating it to potential opportunities.
Q. 23 The book ‘Wealth of Nations’ is written by
(a) Peter Drucker.
(b) Richard Cantillon.
(c) Mc Clelland.
(d) Adam Smith.
Answer:
(d)
Explanation: The book ‘Wealth of Nations’ is written by Adam Smith. In this book, he has defined entrepreneur as an individual, who undertakes the formation of an organisation for commercial purposes by recognizing the potential demand for goods and services, and thereby acts as an economic agent and transforms demand into supply.
Q. 24 Looking for needs, wants, problems and challenges, which are not yet being met or dealt with effectively comes under the step of
(a) self discovery.
(b) generation and evaluation ideas.
(c) identification of opportunities.
(d) viable project.
Answer:
(c)
Explanation: Identifying opportunities is the step under which an entrepreneur looks for needs, wants, problems and challenges, which have never been dealt with anyone before.
Q. 25 The book “Essai sur la nature de commerce en general” was written by Richard Cantillon in the year
(a) 1755.
(b) 1765.
(c) 1775.
(d) 1785.
Answer:
(a)
Explanation: The book “Essai sur la nature de commerce en general” was written by Richard Cantillon in the year 1755. In this book, he has described entrepreneur “as a person who pays a certain price to a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise.”
Q. 26 A famous economist who has been hailed as a Guru in the Management sciences is
(a) Adam Smith.
(b) Karl Marx.
(c) Mc Clelland.
(d) Peter Drucker.
Answer:
(d)
Explanation: Peter Drucker is hailed as a Guru in the Management Sciences as his principles and philosophies are usually considered as the guiding principles for many organizations.
Q. 27 The founder of Reliance industries is
(a) Mukesh Ambani.
(b) Anil Ambani.
(c) D.H. Ambani.
(d) Neeta Ambani.
Answer:
(c)
Explanation: Dhirajlal Hirachand Ambani is the founder of Reliance – one of the few Indian enterprises, which have achieved international acclaim.
Q. 28 According to Peter Drucker, an entrepreneur
(a) is an inventor.
(b) is the one who searches for changes and exploits these changes as opportunities.
(c) is the fourth factor of the economy.
(d) transforms demand into supply.
Answer:
(b)
Explanation: According to Peter Drucker an entrepreneur is the one who searches for changes and exploits these changes as opportunities. He says that an entrepreneur converts a source into a resource and increases the economic value of the source.
Q. 29 “An entrepreneur converts the demand into supply.” This statement is propounded by
(a) Jean Baptiste Say.
(b) Joseph Schumpeter.
(c) Adam Smith.
(d) Peter Drucker.
Answer:
(c)
Explanation: This statement is propounded by Adam Smith. He has defined entrepreneur as an individual who undertakes the formation of an organisation for commercial purposes by recognizing the potential demand for goods and services. Thereby, he acts as an economic agent and transforms demand into supply.
Q. 30 An entrepreneur is an innovator, a job generator and a
(a) producer.
(b) wealth generator.
(c) manager.
(d) worker.
Answer:
(b)
Explanation: An entrepreneur is an innovator, a job generator and a wealth generator as he produces goods or services to earn maximum and this money adds to the wealth of the nation.
Important MCQ-based questions Entrepreneurship class 11 chapter-Entrepreneurship and human activities Set-B
Q. 31 Schumpeter recognizes entrepreneurship as a process of
(a) creative destruction.
(b) use of resources for progressive opportunities.
(c) systematic innovation.
(d) catalyzing the human resource development.
Answer:
(a)
Explanation: Schumpeter recognizes entrepreneurship as a process of creative destruction. According to him, entrepreneurs are innovators who use this process of shattering the status quo of the existing products and services to set new products and new services.
Q. 32 Richard Cantillon is a
(a) Australian economist.
(b) French economist.
(c) British economist.
(d) Brazilian economist.
Answer:
(b)
Explanation: Richard Cantillon is a French economist of Irish descent.
Q. 33 “Entrepreneur is an innovator and not an inventor”. This statement is propounded by
(a) Jean Baptiste Say.
(b) Joseph Schumpeter.
(c) Adam Smith.
(d) Peter Drucker.
Answer:
(b)
Explanation: “Entrepreneur is an innovator and not an inventor”. This statement is propounded by Joseph Schumpeter. According to him, the entrepreneurs are the innovators who use the process of creative destruction to set new products or services.
Q. 34 Azim Hasham Premji is the Chairman of
(a) Reliance.
(b) Wipro.
(c) Tata.
(d) Infosys.
Answer:
(b)
Explanation: Azim Hasham Premji is the Chairman of Wipro, one of the largest software companies in India. It’s headquarters are in Bengaluru, "the Indian Silicon City". Azim Premji was rated the richest person in the country from 1999 to 2005 by Forbes magazine.
Q. 35 An entrepreneur can also be called
(a) the CEO of a company.
(b) the manager of a company.
(c) a self-employed person.
(d) the founder of a company.
Answer:
(c)
Explanation: An entrepreneur is a self-employed person who has possession over a company, enterprise or venture and assumes significant accountability for the inherent risks and the outcome.
Q. 36 The entrepreneurs contribute most towards Gross National Product(GNP) by increasing
(a) productivity.
(b) cost.
(c) labour.
(d) price.
Answer:
(a)
Explanation: The entrepreneurs contribute most towards GNP by increasing productivity.
Q. 37 The mainstream economic factors include
(a) land, labour and capital.
(b) land, labour, capital and entrepreneurship.
(c) land, labour, capital and natural resources.
(d) land, labour and entrepreneurship.
Answer:
(b)
Explanation: The mainstream economic factors include land, labour, capital and entrepreneurship as all these factors contribute to the GNP of the nation.
Q. 38 Adam Smith spoke of an ‘enterpriser’ as an individual who
(a) converts a source into a resource.
(b) is an innovator.
(c) searches for changes.
(d) undertake the formation of an organisation for commercial purposes.
Answer:
(d)
Explanation: Adam Smith spoke of an ‘enterpriser’ as an individual who undertake the formation of an organisation for commercial purposes by recognizing the potential demand for goods and services. Thereby, he acts as an economic agent and transforms demand into supply.
Q. 39 Innovation is a process of
(a) doing new thing.
(b) improvising the existing product.
(c) discovering new methods.
(d) creating a new product
Answer:
(a)
Explanation: Innovation is a process of doing new things. It may refer to incremental, radical and revolutionary changes in thinking, products, processes or organizations.
Q. 40 The transformation of creative ideas into useful application by combining resources into new and unusual ways for providing value to society for or improved products, technology, or services is called
(a) invention.
(b) innovation.
(c) discovery.
(d) development.
Answer:
(b)
Explanation: The transformation of creative ideas into useful application by combining resources into new and unusual ways to provide value to society for or improved products, technology or services is called innovation. An entrepreneur is the one who is an innovator as he uses his creativity to create a new product or services and applies his innovation to produce better ideas and services.
Q. 41 “Through the sale of the product, an entrepreneur compensates the rental value of the land, the wages of the labourers and pays interest on the capital obtained and makes his profit.” This statement is given by
(a) Joseph Schumpeter.
(b) Richard Cantillon.
(c) Peter Drucker.
(d) Jean Baptiste Say.
Answer:
(d)
Explanation: “Through the sale of the product, an entrepreneur compensates the rental value of the land, the wages of the labourers and pays interest on the capital obtained and makes his profit.” This statement is given by Jean Baptiste Say. He tries to envisage the role of the entrepreneur in an entirely different manner. According to him, an entrepreneur is one who avails the land of one, the labour of another and the capital of the third and produces a product to make profit.
Q. 42 According to Peter Drucker, entrepreneurship is
(a) consumer driven.
(b) transforming demand into supply.
(c) the fourth factor of economy.
(d) innovation.
Answer:
(a)
Explanation: According to Peter Drucker, entrepreneurship is consumer driven. According to him, entrepreneurship creates vibrance in human existing and purpose as it involves creating those products or services, which can be put onto greater social use.
Q. 43 Entrepreneurs are called “contractors” as they
(a) create a new product or service.
(b) create demand for products and services.
(c) are change agents.
(d) bear the risk of profit or loss.
Answer:
(d)
Explanation: Entrepreneurs are called “contractors” as they bear the risk of profit or loss. They create a product and bear the outcome for the same.
Q. 44 Creative destruction means
(a) improvising new product.
(b) establishing ways of doing things and destroying it through creation of new ways.
(c) creating demand.
(d) searching for changes.
Answer:
(b)
Explanation: Creative destruction means establishing ways of doing things and destroying it through creation of new ways. Entrepreneurship is a process to shatter the status quo through new methods.
Q. 45 JRD Tata took charge of Tata group of companies in the year
(a) 1936.
(b) 1937.
(c) 1938.
(d) 1939.
Answer:
(c)
Explanation: JRD Tata took charge of Tata group of companies in the year 1938 when he was at the age of thirty four. He continued as its head until 1991.
Q. 46 TCS stands for
(a) Tata Consultancy Service.
(b) Tata Consult Service.
(c) Tata Credit Services.
(d) Tata Credibility Service.
Answer:
(a)
Explanation: TCS stands for Tata Consultancy Service. Tata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring a level of certainty that no other firm can match.
Q. 47 The Tata group has been a leader in encouraging and training staff for services such as Air India and
(a) New India Insurance Co. Ltd.
(b) New India Assurance Co. Ltd.
(c) New India Allied Co. Ltd.
(d) New India Alliance Co. Ltd.
Answer:
(b)
Explanation: The Tata group has been a leader in encouraging and training staff for services such as Air India and New India Assurance Co. Ltd. It is the country’s largest insurance company.
Q. 48 JRD Tata took charge of Tata group of companies at the age of
(a) thirty two.
(b) thirty three.
(c) thirty four.
(d) thirty five.
Answer:
(c)
Explanation: JRD Tata took charge of Tata group of companies at the age of thirty-four and continued as its head until 1991 when he was eighty seven years old.
Q. 49 According to Joseph Schumpeter, an entrepreneur can be linked with
(a) socialism.
(b) human resource management.
(c) land and labour.
(d) innovation.
Answer:
(d)
Explanation: Joseph Schumpeter is the exceptional economist who links the entrepreneur to innovation as he believes that entrepreneurship is a process of creative destruction.
Q. 50 Wipro Group is headed by
(a) Azim Premji.
(b) Anil Ambani.
(c) Aditya Birla.
(d) Laxmi Mittal.
Answer:
(a)
Explanation: Wipro Group is headed by Azim Premji. He is the Chairman of Wipro, which is one of the largest software companies in India. Its headquarters are in Bengaluru, "the Indian Silicon City". Azim Premji was rated the richest person in the country from 1999 to 2005 by Forbes magazine.