OBJECTIVE TYPE QUESTIONS
1. __________ is the type of self-employment where one is running a business to satisfy the needs of people and looking for ways to make the business better.
Answer: (a) Entrepreneurship
Solution:
Entrepreneurship refers to running a business to satisfy
people's needs and continuously looking for ways to improve
the business.
2. Which of the following are the qualities of successful entrepreneurs?
Answer: (d) All of the above
Solution:
Successful entrepreneurs are confident, responsible for
their actions and hardworking. Therefore, all the given
qualities are correct.
3. __________ are people who work for a person or an organization and get paid for that work.
Answer: (b) Wage employed
Solution:
Wage-employed people work for another person or organization
and receive payment or wages for the work they perform.
4. __________ people are those who start businesses to satisfy the needs of people.
Answer: (a) Self-employed
Solution:
Self-employed people work for themselves and may start
businesses to satisfy the needs of customers or other people.
5. A self-employed person who is always trying to make his/her business better by taking risks and trying new ideas is called __________.
Answer: (c) Entrepreneur
Solution:
An entrepreneur is a self-employed person who takes risks,
tries new ideas and continuously looks for ways to improve
a business.
6. Ramya and Ramu both own plant shops. Ramu sits at his shop every day. When customers come, he sells to them. Ramya walks around and gets customers to her shop. She also sells seeds and flowers. Who is Entrepreneur out of Ramya and Ramu?
Answer: (c) Both of the above
Solution:
Both Ramya and Ramu own and operate their own plant shops,
making them self-employed. Ramya additionally demonstrates
entrepreneurial activities by attracting customers and
expanding the products she sells.
7. What do entrepreneurs do when they run their business?
Answer: (c) Both of the above
Solution:
Entrepreneurs can create employment opportunities and also
help people in society earn money through the businesses
they establish and operate.
8. Qualities of successful entrepreneurs are:
Answer: (d) All of the above
Solution:
Successful entrepreneurs try new ideas, have confidence
and use creativity to improve their businesses. Therefore,
all of the above are qualities of successful entrepreneurs.
9. Ravi’s customer comes to his store and starts shouting at him. He does not get angry. He listens to what his customer is saying. He is __________.
Answer: (c) Patient
Solution:
Ravi remains calm, does not become angry and listens to
the customer. These actions demonstrate patience.
10. Susheela decides to sell her company tyres in Sri Lanka. It does not sell and she has a loss. She apologises to the people who work for her. She says she will plan better next time. She __________.
Answer: (a) takes responsibility for her mistakes
Solution:
Susheela accepts that her decision resulted in a loss,
apologises to her employees and plans to improve next time.
This shows that she takes responsibility for her mistakes.
11. As an entrepreneur, you should be __________.
Answer: (d) All of the above
Solution:
An entrepreneur should be creative, hardworking and capable
of making decisions. Therefore, all of the above are important
qualities of an entrepreneur.
12. An entrepreneur does things __________.
Answer: (b) different from others
Solution:
Entrepreneurs look for new and different ways of doing things.
They try to create new ideas, products or methods rather than
simply copying others.
13. The money used to start a business is called __________.
Answer: (a) Capital
Solution:
Capital is the money or financial resources used to start
and operate a business.
14. Success of entrepreneur depends on __________.
Answer: (c) Both of the above
Solution:
Hard work and a good business idea both contribute to the
success of an entrepreneur.
15. Which of the following are misconception about Entrepreneur?
Answer: (d) All of the above
Solution:
All three statements are common misconceptions about
entrepreneurship. Entrepreneurial skills can be developed,
business size alone does not define an entrepreneur, and
starting a business does not necessarily require a large
amount of money.
16. A doctor who works for a hospital is a __________ person.
Answer: (a) Wage employed
Solution:
A doctor working for a hospital is employed by an organization
and receives payment for the work performed. Therefore, the
doctor is wage employed.
17. Dr. Ravi has his own clinic so he is a __________ Person.
Answer: (a) Self-employed
Solution:
Dr. Ravi owns and operates his own clinic, so he works for
himself. Therefore, he is self-employed.
18. Positive impact of entrepreneurship on society is __________.
Answer: (d) All of the above
Solution:
Entrepreneurship can contribute to economic growth, encourage
social welfare and provide solutions to problems faced by
society. Therefore, all of the above are positive impacts.
19. Society plays a role in boosting entrepreneurship by __________.
Answer: (c) Both of the above
Solution:
Society supports entrepreneurship by providing resources such
as raw materials and by creating needs and demands for
products and services.
20. Adverse impact of entrepreneurship on society is __________.
Answer: (d) None of the above
Solution:
According to the given answer, none of the listed options
is selected as the adverse impact in this question.
21. Which of the following social problems are tackled by social entrepreneurs?
Answer: (d) All of the above
Solution:
Social entrepreneurs work to solve social problems such as
limited access to quality education, unemployment and child
labour. Therefore, all of the above are correct.
22. Agricultural Entrepreneurship helps farmers in __________.
Answer: (a) finding low-cost innovations in farming processes.
Solution:
Agricultural entrepreneurship focuses on developing useful
and affordable innovations that can improve farming processes
and help farmers.
23. Which of the following entrepreneurship refers to starting industries in which manufacturing, trading, providing services, productions are done on a micro scale?
Answer: (c) Small Scale Entrepreneurship
Solution:
Small Scale Entrepreneurship refers to businesses or
industries where manufacturing, trading, services or
production are carried out on a small or micro scale.
24. Entrepreneurship skills helps __________.
Answer: (d) All of the above
Solution:
Entrepreneurship skills help individuals handle failure,
contribute positively to society and develop critical
thinking skills. Therefore, all of the above are correct.
25. Which of the following are commercial functions of Entrepreneur?
Answer: (d) All of the above
Solution:
Entrepreneurs perform several important functions including
innovation, finance and accounting, and leadership.
Therefore, all of the above are correct.
26. An enterprise owned and controlled by a woman and giving at least 51 per cent of the employment generated in the enterprise to women is __________.
Answer: (d) Women Entrepreneurship
Solution:
Women Entrepreneurship refers to an enterprise owned and
controlled by a woman and meeting the specified participation
of women in employment generated by the enterprise.
27. Entrepreneurs can create jobs in the market. (T/F)
Answer: (a) True
Solution:
Entrepreneurs create and expand businesses, which can
generate employment opportunities in the market.
28. When many entrepreneurs sell mobile phones in a market, the prices of phones increase. (T/F)
Answer: (b) False
Solution:
According to the given answer, the statement is false.
Competition among sellers does not necessarily cause mobile
phone prices to increase.
29. Entrepreneurs identify a need in the market and build a product or service for it. (T/F)
Answer: (a) True
Solution:
Entrepreneurs identify needs or problems in the market and
develop products or services to satisfy those needs.
30. All businesses are either skyrocket or fail. (T/F)
Answer: (a) True
Solution:
According to the provided answer key, the correct answer is
True.
31. Which of the following characteristics should an entrepreneur have?
Answer: (c) All of these
Solution:
An entrepreneur should be innovative and should also be able
to motivate others. Therefore, both characteristics are
included in the correct answer, “All of these.”
32. Which of the following is a disadvantage of entrepreneurship as a career?
Answer: (a) Uncertainty
Solution:
Entrepreneurship involves risks and uncertainty because
business performance and income may not always be predictable.
Therefore, uncertainty is a disadvantage of entrepreneurship
as a career.
33. Which of the following are the functions of an entrepreneur?
Answer: (c) All of these
Solution:
Innovation and risk-taking are important functions of an
entrepreneur. Therefore, all of the given options are included
in the correct answer.
34. Which of the following is an advantage of entrepreneurship as a career?
Answer: (c) None of these
Solution:
According to the given answer, neither risk nor hard work is
identified as an advantage in this question. Therefore, the
correct answer is “None of these.”
35. The decision-making function of an entrepreneur includes:
Answer: (c) Utilisation of financial resources
Solution:
An entrepreneur has to make decisions about how available
financial resources should be used effectively. Therefore,
utilisation of financial resources is the correct answer.
