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5. What is meant by a ‘business idea’?
Ans. A business idea is a thought that can be used to make money and is usually focused on a product or service
that can be sold for money. The first step in the process of establishing a successful business is the generation
of an idea.
6. Mention any two qualities of a successful entrepreneur. [CBSE Sample Paper, 2022]
Ans. Willingness to take risks
Ability to learn from experience
7. What motivates an entrepreneur? [CBSE Sample Paper, 2022]
Ans. An entrepreneur has the potential and willingness to overcome every hurdle that comes in his/her way. Qualities
can be uniqueness, need to influence, identifying opportunities and risk taking.
B. Long answer type questions.
1. What are the essential functions that an entrepreneur must accomplish? Explain any four.
Ans. The following are some of the essential functions that an entrepreneur must accomplish:
i. Identifying business opportunities: There are numerous opportunities in the corporate sector. These are
based on ever-changing human requirements such as food, fashion, and education. The general population
is unaware of these opportunities. However, an entrepreneur detects opportunities faster than others. As a
result, the entrepreneur must have his or her eyes and ears open at all times. To become an entrepreneur,
one must have vision, creativity, and innovativeness.
ii. Putting ideas into action: Entrepreneurs must be able to put their ideas into action. They should be able to
gather information on ideas, products, and processes in order to meet market demand.
iii. Feasibility study: Entrepreneurs undertake feasibility studies to determine the commercial viability of a new
product or service. They anticipate problems and evaluate the number, quality, pricing, and sources of inputs
needed to run the business. A 'business plan' or 'project report' is a roadmap of all actions.
iv. Resourcing: To establish a successful business, an entrepreneur requires a variety of resources such as
money, machinery, raw materials, and labour. An entrepreneur's primary responsibility is to secure the timely
availability of all of these resources.
2. What are some methods for prospective entrepreneurs to identify new business opportunities and assess their
potentials and hazards?
Ans. Following are some methods for prospective entrepreneurs to identify new business opportunities and assess
their potentials and hazards:
i. Community Concerns: Look for problems that are important to your community. Starting small might have a
big payoff in some cases. Identify inefficiencies, analyse how an innovation can assist, and weigh the dangers.
ii. Personal experiences: Many significant world-changing ideas emerge from an entrepreneur's life experiences
and obstacles. If you want to be an entrepreneur, you should listen to and be inspired by the personal
experiences of great entrepreneurs. Their experiences may teach you valuable lessons in entrepreneurship
and provide insights into certain company tactics that you can use to achieve success.
iii. Discuss with others: Talk to like-minded people, get active in social groups, and join local startup groups to
conduct research with others. Many times, conversing with others opens up new avenues of opportunities.
It is also beneficial to master the subtleties of business.
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