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9. Why is “Generate a business idea” an important step?
Ans. An idea based on your interest, passion, hobby or market potential needs to be finalised. Once an idea is finalised, you
discuss it with your associates in the business area or with the people around you who can provide vital feedback by
playing prospective customers. Based on this feedback a business can be started.
10. What do you mean by ”gathering the resources”?
Ans. Gathering the resources means managing your funds, labour (skilled and unskilled), raw material and business associates.
Everything needs to be channelised properly for a good start in a business.
11. List any four characteristics of entrepreneurship. [NCERT]
Ans. The characteristics of entrepreneurs are as follows:-
• Self-Starter • Hard Working
• Courageous • Foresight
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. Give four important features of a business.
Ans. • It requires initial investment in terms of time and money.
• It is an economic activity related to trading with no emotional objectives.
• It involves manufacturing, purchasing and selling of goods (raw material or finished) or services to meet the needs of
the customers in the market.
• It is an important source of income for a businessman.
3. Give three differences between Service and manufacturing business.
Ans.
Service Manufacturing
Provides services of different types Production of goods using raw material
Service cannot be stored in warehouses or boxes Raw material, intermediate, finished products are stored.
Service is intangible i.e it cannot be touched. Raw material, intermediate, finished product are intangible.
4. Explain the Employee objectives of a business.
Ans. • Providing economic well-being of the employees by giving them fair remuneration, incentives and benefits like provident
fund, pension, medical facilities, etc.
• Providing social and psychological satisfaction of employees by providing opportunities for promotion and advancement
in career.
• Providing facilities to improve their skills and developing their abilities and competencies in course of time.
• Providing help to backward classes, physically and mentally challenged people to improve their earning capacity.
5. Explain any three important characteristics of an entrepreneur.
Ans. • Risk taking capability: An entrepreneur should have enough courage to evaluate and take risks to establish his newly
setup business. It involves proper planning and calculative decisions to capture the potential market and have competitive
advantage.
• Innovative: Setting a new business in an innovative manner is a unique characteristic of an entrepreneur. It can be a
launch of a product or selling a service. Customers are always attracted towards the products or services which are sold
in an innovative way.
• Visionary and Leadership qualities: An entrepreneur should have strong leadership qualities and a strong vision of
earning maximum profits through his innovative new venture. The employees working in his business will strongly
believe him and respect him. They will follow his commands even when the business is in a state of turmoil.
Entrepreneurial Skills-I 115

