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The money you are planning to invest in business will be:
• Taken from your savings and personal assets.
• Borrowed from banks or any other financial company.
• Utilised from the profit of some other business.
9. What do you mean by "Promote the business"?
Ans. This helps you to bring your business straight to potential customers. It can be done through advertisements on TVs,
radios, newspapers, social media, etc. If it is a small scale business, then promotion is done through pamphlets in
newspaper.
10. List any four characteristics of entrepreneurship. [NCERT]
Ans. The characteristics of entrepreneurs are as follows:
• Ability to take up risks. • Believe in hard work and discipline
• Financial literacy and money management skill. • Effective planing and execution
B. Long answer type questions:
1. Explain in detail the hybrid type of a business.
Ans. Hybrid business is a mix of two or more different types of businesses. It can be in service or manufacturing or merchandising
or all of these. It does business in the form of goods and services. For example, a restaurant is in manufacturing by
preparing a ready to eat food in the form of fine dining. At the same time, it works as a merchandiser by selling beverages
with the fine meals. It also provides services by serving home deliveries through online or offline orders.
2. What do you understand by the term "Open to Trial and Error"?
Ans. Entrepreneurs need to be open to new ideas and try them without fear of failure. Being open to trial and error allows
entrepreneurs to adapt their strategies, refine their approach, and discover what works best for their business.
3. Give three differences between Wage Employment and Entrepreneurship.
Ans.
Wage Employment Entrepreneurship
Individuals work for an employer or a company and Initiate and operate their own businesses. Responsible for
receive a fixed wage or salary in exchange for their labour. their own profits and losses.
The level of risk is comparatively lower with stable Entrepreneurship involves a higher level of risk-taking. It
income and job security. has uncertainties, financial risks, and market fluctuations.
Employees receive a regular and predictable income in Entrepreneurs' income is often variable and depends on
the form of wages or salaries. the success of their business.
4. What is the definition of perception in the context of entrepreneurship?
Ans. Perception in entrepreneurship refers to the strong understanding and insight into running a business in an innovative
manner to achieve long-term goals and greater profits.
5. Explain any three important elements of entrepreneurship.
Ans. • Innovation: It means doing something in a creative and different way. This is the key element of entrepreneurship.
Opening a roadside restaurant is just like opening a business but bringing the element of “Home cooked food for
the people in a Food Truck" is called an innovation in business.
• Organisation: This plays an important role if a startup is launched at a large scale with a big investment. Though
an entrepreneur is a person leading the whole business with his ideas but the other employees working in an
organisation are equally important for the success of the startup.
• Risk bearing: Doing a business with a new idea is always associated with risk. But taking a calculated risk is an
important element of entrepreneurship. This will bring change in the society by bringing new products and services.
6. What is the role of entrepreneurship in economic development?
Ans. An entrepreneur provides better and cheaper products and services for customers that brings economic growth. As
entrepreneurs grow their business, investors put money into their businesses and expect good returns. As more and
more entrepreneurs create business opportunities, the economy grows.
7. Explain the term Trading.
Ans. This deals with buying and selling a product. In this, the finished products are purchased at wholesale price and sold
to consumers at retail price. The form of the products is not changed but the products are sold at a little higher price
than the purchase price that helps them to earn profits.
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