Tag: entrepreneurship: an introduction, nature, importance and problems

Questions Related to entrepreneurship: an introduction, nature, importance and problems

The innovative methods used in social enterprises to broaden the access of capital includes -

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. Loan guarantee

  2. Quasi-equity debt

  3. Polling

  4. All of the above

Show answer
Correct Option: D
Explanation:

The innovative methods used in social enterprises to broaden the access of capital includes:-

Loan Guarantee:- It is a type of finance in which one party promises to assume the debt obligation of the borrower if the borrower defaults.
Quasi- equity Debt:- It is a type of financing which posses both the characteristics of debt and equity.
Polling:- It is a type of financing where there is grouping of resources for the purpose of maximum advantage or minimum risk.

_______is particularly useful for enterprises that are legally structured as non-profits and therefore cannot obtain equity capital.

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. Quasi-equity debt security

  2. Loan security

  3. Deemed security

  4. All of the above

Show answer
Correct Option: A
Explanation:

Quasi equity debt security posses the characteristics of both equity and debt. It is particularly useful for enterprises that are legally structured as non profits and therefore cannot obtain equity capital.

Which of the following challenges social entrepreneurship are facing?

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. Limited access to early stage capital

  2. Development of new product

  3. Maintaining profits

  4. All of the above

Show answer
Correct Option: A
Explanation:

Social entrepreneurs are the person who set up an enterprise with the aim for doing something for social benefit. They as like other entrepreneur face a lot of challenges but the major one is access to early stage capital. They find it difficult for funding their business.

The key to managing return on funding in social enterprises is to offer______.

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. Consistent risk and return to all investors

  2. Different risks and returns to different kind of investor

  3. Return on the basis of types of social enterprise

  4. All of the above

Show answer
Correct Option: B
Explanation:

As a social enterprise find it difficult for funding their business. They need to pool funds from diversified investors for financing their business. They are faced with different risks and have to offer different returns to different kinds of investors for accessing to their capital needs.

The funding of social entrepreneurship is essentially a problem of -

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. Availability of investment option

  2. Financing structuring

  3. Profits

  4. None of the above

Show answer
Correct Option: B
Explanation:

Financing structuring refers to the balance between all companies liabilities and equity. In case of social entrepreneurship it is essentially a problem. 

An entrepreneur generates employment for which of the following categories of people?

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. For women

  2. For lower middle class

  3. For SC/ ST

  4. All the above

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Correct Option: D

How do entrepreneurs ensures economic efficiency?

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. By reducing wastes

  2. By increasing yields

  3. By technical progress

  4. All of the above

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Correct Option: D
Explanation:

Economic efficiency does not only mean gaining profits. For ensuring economic benefits many factors have to be considered. Entrepreneurs by focusing on some areas achieve economic efficiency. 

 By reducing wastes in production, by increasing yields per input and focusing on technical progress an entrepreneur achieves economic efficiency.

What measures the percentage increase in capital formation required  for obtaining a percentage increase in GDP?

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. Liquidity ratio

  2. Incremental capital output ratio

  3. Financial leverage ratio

  4. None of the above

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Correct Option: B
Explanation:

Incremental capital output ratio measures the marginal amount of investment capital needed to generate a next unit of production.

Incremental capital output ratio= Annual Investment/Annual increase in GDP.

How can a person search for entrepreneurial opportunities?

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. Personal observation

  2. Discovery or Innovation

  3. Personal/ Professional contacts

  4. All of the above

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Correct Option: D

Name the initiative taken by ITC for impacting local communities with regard to the development of entrepreneurship?

organization of commerce and management entrepreneurship: an introduction, nature, importance and problems functions and role of an entrepreneur entrepreneurs types of entrepreneurs

  1. e-Chaupal

  2. Shakti

  3. Go green

  4. None of the above

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Correct Option: A