Q.1 Which of the following is a primary function of an entrepreneur?
Financing government projects
Organizing resources
Filing taxes
Providing social welfare
Explanation - Entrepreneurs primarily organize resources such as land, labor, and capital to start and run a business.
Correct answer is: Organizing resources
Q.2 Entrepreneurs take risks primarily to:
Avoid taxes
Earn profits
Reduce competition
Hire more employees
Explanation - Entrepreneurs take calculated risks to gain profits from their business ventures.
Correct answer is: Earn profits
Q.3 Which function involves providing leadership and guidance to employees?
Planning
Directing
Financing
Innovating
Explanation - Directing is the function of leading and guiding employees to achieve organizational goals.
Correct answer is: Directing
Q.4 Identifying new business opportunities falls under which function of an entrepreneur?
Innovation
Financing
Marketing
Production
Explanation - Innovation includes identifying new opportunities, products, or methods for business growth.
Correct answer is: Innovation
Q.5 Which function involves arranging funds for the business?
Marketing
Financing
Production
Innovation
Explanation - Financing is the process of arranging capital required to start and run a business.
Correct answer is: Financing
Q.6 Entrepreneurs contribute to economic development by:
Increasing unemployment
Introducing new products
Reducing production
Limiting trade
Explanation - By introducing new products and services, entrepreneurs drive innovation and economic growth.
Correct answer is: Introducing new products
Q.7 Which function of entrepreneurs involves predicting future business scenarios?
Planning
Directing
Controlling
Marketing
Explanation - Planning involves forecasting and setting objectives for smooth business operations.
Correct answer is: Planning
Q.8 Managing daily operations effectively is part of which entrepreneurial function?
Production
Controlling
Directing
Financing
Explanation - Controlling ensures that business activities align with planned objectives and operations run smoothly.
Correct answer is: Controlling
Q.9 Which function involves promoting products to attract customers?
Marketing
Planning
Directing
Financing
Explanation - Marketing includes advertising, selling, and promoting products to meet customer needs.
Correct answer is: Marketing
Q.10 Risk-taking by entrepreneurs is considered:
Optional
A core function
Illegal
A social duty
Explanation - Taking calculated risks is central to entrepreneurship and business decision-making.
Correct answer is: A core function
Q.11 Which function focuses on efficient use of resources to produce goods or services?
Production
Marketing
Financing
Directing
Explanation - Production involves transforming resources into goods or services efficiently.
Correct answer is: Production
Q.12 Entrepreneurial decision-making primarily aims at:
Reducing competition
Maximizing profits
Avoiding employees
Minimizing innovation
Explanation - Entrepreneurs make decisions to achieve business objectives, mainly profitability.
Correct answer is: Maximizing profits
Q.13 Which function requires analyzing the market before launching a product?
Marketing research
Directing
Financing
Controlling
Explanation - Entrepreneurs study the market to understand customer needs and plan product strategies.
Correct answer is: Marketing research
Q.14 Entrepreneurs perform the function of coordination to:
Increase taxes
Align resources and activities
Hire only family members
Limit innovation
Explanation - Coordination ensures that all resources and departments work together towards common goals.
Correct answer is: Align resources and activities
Q.15 Which function involves continuous improvement in products or processes?
Innovation
Marketing
Financing
Directing
Explanation - Entrepreneurs innovate to improve efficiency, quality, and meet market demands.
Correct answer is: Innovation
Q.16 Entrepreneurs ensure quality control to:
Increase production costs
Maintain product standards
Reduce employee involvement
Avoid planning
Explanation - Quality control is part of the controlling function to ensure products meet desired standards.
Correct answer is: Maintain product standards
Q.17 Which function is crucial for acquiring necessary inputs like raw materials?
Procurement
Directing
Marketing
Innovation
Explanation - Procurement involves acquiring resources essential for production and operations.
Correct answer is: Procurement
Q.18 Entrepreneurs influence the economy by:
Restricting innovation
Generating employment
Avoiding risks
Controlling government policies
Explanation - Entrepreneurship creates job opportunities and stimulates economic growth.
Correct answer is: Generating employment
Q.19 Which function involves setting objectives and deciding how to achieve them?
Planning
Directing
Financing
Marketing
Explanation - Planning is essential for setting goals and determining the actions needed to achieve them.
Correct answer is: Planning
Q.20 Monitoring employee performance falls under which function?
Controlling
Planning
Directing
Financing
Explanation - Controlling ensures employees meet performance standards and organizational goals.
Correct answer is: Controlling
Q.21 Entrepreneurial marketing helps in:
Avoiding customers
Promoting products
Reducing production
Increasing taxes
Explanation - Marketing is a key function to advertise, promote, and sell products effectively.
Correct answer is: Promoting products
Q.22 Entrepreneurs innovate to:
Maintain monopoly
Meet customer needs and improve processes
Hire fewer employees
Avoid taxation
Explanation - Innovation allows businesses to stay competitive and satisfy evolving customer requirements.
Correct answer is: Meet customer needs and improve processes
Q.23 Decision-making is a part of which entrepreneurial function?
Planning
Directing
Financing
Marketing
Explanation - Entrepreneurs make strategic decisions during planning to guide the business effectively.
Correct answer is: Planning
Q.24 Which function ensures effective utilization of financial resources?
Financing
Production
Directing
Innovation
Explanation - Financing includes acquiring and managing funds efficiently for business operations.
Correct answer is: Financing
Q.25 Entrepreneurial coordination is necessary to:
Increase bureaucracy
Align various functions and activities
Reduce profits
Avoid planning
Explanation - Coordination ensures all departments work together to achieve business objectives.
Correct answer is: Align various functions and activities