AI Chapter-4

1. Which of the following best defines entrepreneurship according to Cole?

• a) A process of innovation
• b) A purposeful activity to initiate, maintain and aggrandize profit-oriented business
• c) A social activity for development
• d) A technical process

Answer explanation

Explanation: According to the text, Cole explicitly defines entrepreneurship as "a purposeful activity to initiate, maintain and aggrandize profit-oriented business."

2. What is NOT a characteristic of entrepreneurship?

• a) It is an economic activity
• b) It begins with identifying opportunities
• c) It guarantees immediate success
• d) It deals with optimization of resources

Answer explanation

Explanation: The text doesn't mention guaranteed success as a characteristic of entrepreneurship. In fact, it emphasizes risk-taking and uncertainty as key aspects.

3. A person who focuses on developing solutions that benefit society is called:

• a) Technical entrepreneur
• b) Professional entrepreneur
• c) Social entrepreneur
• d) Business entrepreneur

Answer explanation

Explanation: The text defines social entrepreneurs as individuals who focus on developing solutions that benefit society, culture, and environment.

4. Which quality refers to the ability to take advantage of opportunities quickly?

• a) Hard work
• b) Initiative
• c) Self-confidence
• d) Motivation

Answer explanation

Explanation: According to the text, initiative is the quality where entrepreneurs must be able to take advantage of opportunities quickly before they pass.

5. What is the primary function of conducting a feasibility study?

• a) To hire employees
• b) To assess market feasibility and anticipate problems
• c) To manage daily operations
• d) To handle legal formalities

Answer explanation

Explanation: The text states that entrepreneurs conduct feasibility studies to assess market feasibility and anticipate problems related to quantity, quality, and costs.

6. Which type of entrepreneur uses their technical expertise to create and offer machines, tools, and methods?

• a) Professional entrepreneur
• b) Agricultural entrepreneur
• c) Technical entrepreneur
• d) Business entrepreneur

Answer explanation

Explanation: The text defines technical entrepreneurs as those who use their technical expertise to create and offer machines, tools, and methods.

7. What is the most appropriate first step in identifying business opportunities?

• a) Getting bank loans
• b) Looking at community concerns
• c) Hiring employees
• d) Setting up an office

Answer explanation

Explanation: The text mentions that looking at community concerns is one of the first ways aspiring entrepreneurs can identify new business opportunities.

8. What distinguishes a startup from a traditional business venture?

• a) Location
• b) Number of employees
• c) Way they think about growth
• d) Product type

Answer explanation

Explanation: According to the text, a startup and traditional business venture are different most notably for the way they think about growth.

9. Which is NOT mentioned as a barrier to entrepreneurship?

• a) Environmental barriers
• b) Self-doubt
• c) Market competition
• d) Faulty business plan

Answer explanation

Explanation: While the text discusses various barriers to entrepreneurship, market competition is not specifically listed as one of the main barriers.

10. What is decisiveness in entrepreneurship?

• a) Ability to work long hours
• b) Ability to make quick and profitable decisions
• c) Ability to manage employees
• d) Ability to raise capital

Answer explanation

Explanation: The text defines decisiveness as the ability to make quick and profitable decisions.