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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 their
receive a fixed wage or salary in exchange for their labour. own profits and losses.
The level of risk is comparatively lower with stable income Entrepreneurship involves a higher level of risk-taking. It has
and job security. uncertainties, financial risks, and market fluctuations.
Employees receive a regular and predictable income in Entrepreneurs' income is often variable and depends on the
the form of wages or salaries. 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. They also transport the product from the factory to warehouses. Examples
of these businesses include wholesalers, distributors and retail shops.
8. Explain any three benefits of entrepreneurship.
Ans. The various benefits of entrepreneurship include the following:
• Do what you are interested in: Entrepreneurship helps the entrepreneurs to pursue their passions and interests, allowing
for greater creativity and innovation in their work.
• Work for yourself, and not for others: Entrepreneurship provides the freedom to design work hours, select projects, and
work from any place. Entrepreneurs can decide the kind of work you like to do and how you want to do it.
• Make profits for yourself: As an entrepreneur, one can decide how much money they want to earn and how much they
want to invest in the business. They decide on the salary, wages and incentives of the employees.
21 st
C. Competency-based/Application-based questions. Century #Critical Thinking
Skills
1. Mayank is planning to start his own business of selling readymade garments. Guide him what proper steps he should
follow to start his own business.
Ans. Start your own business,follow the given steps:
Step 1: Plan and finalise a business idea: This is a very important step where you make a choice of starting your own
business with your planned idea. This could be:
• something you are interested in.
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