{"id":30828,"date":"2019-09-28T21:08:29","date_gmt":"2019-09-28T15:38:29","guid":{"rendered":"https:\/\/www.cbselabs.com\/?p=30828"},"modified":"2021-09-18T15:17:11","modified_gmt":"2021-09-18T09:47:11","slug":"ncert-solutions-for-class-11-entrepreneurship-chapter-4-entrepreneurship-as-innovation-and-problem-solving","status":"publish","type":"post","link":"https:\/\/www.cbselabs.com\/ncert-solutions-for-class-11-entrepreneurship-chapter-4-entrepreneurship-as-innovation-and-problem-solving\/","title":{"rendered":"NCERT Solutions for Class 11 Entrepreneurship Entrepreneurship as Innovation and Problem Solving"},"content":{"rendered":"

NCERT Solutions for Class 11 Entrepreneurship\u00a0Chapter-4 Entrepreneurship as Innovation and Problem Solving<\/strong><\/span><\/h2>\n

TEXTBOOK QUESTIONS SOLVED.<\/strong><\/span><\/h3>\n

Question 1. Answer each of these questions in about 15 words:<\/strong><\/span>
\n(i) Name any two institutions involved in Entrepreneurship Development Program.<\/strong><\/span>
\n (ii) Who is a social entrepreneur?<\/strong><\/span>
\n (iii) What are insurable risks?<\/strong><\/span>
\n (iv) What are non-insurable risks?<\/strong><\/span>
\n (v) What is economic barrier?<\/strong><\/span>
\n (vi) Give an example of a social entrepreneur.<\/strong><\/span>
\nAnswer:\u00a0<\/strong><\/span>(i) 1. National Institute for Entrepreneurship and Small Business Development (NIESBUD).
\n2.Indian Institute for Entrepreneurship.
\n3.National Institute for Micro, Small and Medium Enterprises (NIMSME).
\n(ii) According to Martin and Osberg, \u201cThe Social Entrepreneur aims for value in the form of large-scale transformational benefit that accrues either to a significant segment of society or to society at large.\u201d Moreover, \u201cThe social entrepreneur targets his\/her programs at the underserved, neglected, or highly disadvantaged population that lacks the financial means or political clout to achieve the transformative benefit on its own.\u201d
\n(iii) These are the risks which are related to life and property against fire, theft, accidents, etc. They are covered and protected by insurance.
\n(iv) These are the risks whose probability cannot be determined and which cannot be insured against. For example:<\/strong> Fluctuations in price and demand. These are further divided into two types
\n(a) Internal Risks:<\/strong> Those risks which arise from the events taking place within the business enterprise.
\n(b) Business risks:<\/strong> These are of a diverse nature and arise due to innumerable factors. These risks can be insurable or non-insurable.
\n(v) The factors of production land, labour, capital, material, etc. contribute equally towards the development of entrepreneurship in any country. If all the factors are readily available to the entrepreneurs, then entrepreneurship is naturally promoted and developed. But if any of the factor of production are not available or not readily available or available in inadequate quality and quantity, they can become barriers to entrepreneurship.
\n(vi)\u00a0(a) Vinoba Bhave:<\/strong> He was the founder of the Bhudaan Andolan, which resulted in redistribution of more than 7,000,000 acres of land to aid India\u2019s untouchables and landless.
\n(b) Ela Bhatt:<\/strong> She founded Self-Employed Women\u2019s Association (SEWA) in 1972 is a trade union of poor, unorganised, self-employed women who work as vendors, hawkers and labourers.<\/p>\n

Question 2. Answer each of these questions in about 50 words:<\/strong><\/span>
\n (i) What is business incubation?<\/strong><\/span>
\n (ii) Explain business intelligence.<\/strong><\/span>
\n (iii) List two examples of incubation centres in India<\/strong><\/span>
\n (iv) Write about any two innovations which led to entrepreneurial ventures.<\/strong><\/span>
\n (v) Differentiate between social entrepreneurship and entrepreneurship.<\/strong><\/span>
\nAnswer:\u00a0<\/strong><\/span>(i) Business incubation are programs designed to support the successful development of entrepreneurial ventures through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Business support resources and services comprises of providing physical space, capital, coaching, networking connections, etc.
\n(ii) Business intelligence is the ability of an organization to collect, maintain, and organize data.
\n(iii) NZTE, Technology NZ.
\n(iv)\u00a0(a) Potato Chips:<\/strong>
\nAim:<\/strong> George Crum, a chef at the Carey Moon Lake House was trying to make a plate of fried potato.
\nCreation: One day, a customer repeatedly sent back the plate of potatoes for more frying and having thinner fried potatoes. In anger Crum sliced the potatoes insanely thin and fried them until they were hard as a rock. On serving it to the customer, the customer loved it and wanted more. This is how potato chips came into existence.
\n(b) The Pacemaker:<\/strong>
\nAim:<\/strong> John Hopps, an electrical engineer was trying to use radio frequency heating to restore body temperature.
\nCreation: During his experiment, he realized that if a heart stopped beating due to cooling, it could be made to beat again by artificial stimulation. This led to the creation of pacemaker.
\n(v) Following is the difference between Entrepreneurship and Social Entrepreneurship:<\/strong>
\n(a) The entrepreneur’s final objective is wealth creation but for the social entrepreneur, wealth creation is simply a means to an end.
\n(b) The entrepreneur participates in entrepreneurial venture with the aim of earning profit. On the other hand, the social entrepreneur participates in profit seeking business ventures if only to use the profits generated to create valuable social programs for the whole community.
\n(c) Entrepreneur has individual motive of self-development whereas social entrepreneur has the motive of societal development.<\/p>\n

Question 3. Answer each of these questions in about 75 words:<\/strong><\/span>
\n (i) What is cloud computing?<\/strong><\/span>
\n (ii) How did KFC begin its operations?<\/strong><\/span>
\n (iii) Explain the various external factors which lead to business risk?<\/strong><\/span>
\n (iv) Enumerate three ways as to how incubators help start-ups get funding.<\/strong><\/span>
\nAnswer:\u00a0<\/strong><\/span>(i) The origin of the term cloud computing appears to be derived from the practice of using drawings of stylized clouds to denote networks in diagrams of computing and communications systems. The word cloud is used as a metaphor for the internet, based on the standardized use of a cloud-like shape to denote a network.
\nCloud computing helps the firms to upload all its data on to a cloud and then it can be
\nused it remotely wherever it is required.
\n(ii) In 1930, Sanders was operating a service station in Corby, USA and he observed that travellers who stopped for gas were normally hungry and they wanted to eat something. Sanders saw and understood the problem. He knew how to cook, and so he cooked chicken recipe for the travellers. This spicy chicken receipe became super hit among travellers. This prompted him to start a restaurant which was beginning of the world famous fast food chain \u201cKFC – Kentucky Fried Chicken\u201d.
\n(iii) The various external factors which may give rise to such risks are as follows:
\n1.Economic factors:<\/strong> These arise due to prevalent economic condition and changes in the prevailing market conditions. These can be of following types:<\/strong><\/p>\n

    \n
  • changes in demand<\/li>\n
  • price fluctuations<\/li>\n
  • changes in tastes and preferences of the consumers<\/li>\n
  • changes in income, output or trade cycles<\/li>\n
  • increased competition for the product<\/li>\n
  • inflationary tendency in the economy<\/li>\n
  • rising unemployment<\/li>\n
  • fluctuations in world economy
    \nFor example: Audio cassette player to CD player<\/li>\n<\/ul>\n

    2.Natural factors:<\/strong> These are the unforeseen natural calamities like earthquake, flood, famine, cyclone, lightening, etc. These may cause loss and damage to life and property. Entrepreneurs have very little or no control. For example, the land slide in Uttarakhand damaged the business and have adversely affected the whole economy of the State.<\/p>\n

    3.Political factors:<\/strong> These are due to political changes in a country like<\/p>\n

      \n
    • fall or change in the Government,<\/li>\n
    • communal violence<\/li>\n
    • civil war<\/li>\n
    • hostilities with the neighbouring countries.<\/li>\n
    • changes in Government policies and regulations<\/li>\n<\/ul>\n

      4.Change in taste and preference:<\/strong> Tastes change with the change of time and factors.
      \nFor example: Earlier home made food was preferred and fast food was considered as luxury. In the present scenario, there has been an increase for the liking towards fast food.
      \n(iv)Incubators help the companies\/firms to secure capital in the following ways:<\/p>\n

        \n
      • Helps in connecting companies with angel investors (high-net-worth individual investors).<\/li>\n
      • Working with companies to perfect venture capital presentations and connecting them to venture capitalists.<\/li>\n
      • Helping and guiding companies in applying for loans.<\/li>\n
      • Helping and guiding companies in accessing government agency.<\/li>\n<\/ul>\n

        Question 4.Answer each of these questions in about 150 words:<\/strong><\/span>
        \n (i) Explain the various internal factors which lead to business risk?<\/strong><\/span>
        \n (ii) Explain in detail the personal barriers.<\/strong><\/span>
        \n (iii) Explain.<\/strong><\/span>
        \n (a) Smart, (b) Explain Information Collection as new business forms.<\/strong><\/span>
        \nAnswer:\u00a0<\/strong><\/span>(i) Every business organization contains various risk elements while doing the business.
        \nBusiness risks implies uncertainty in profits or danger of loss and the events that could pose a risk due to some unforseen events in fugure, which causes business to fail. The Business risk is classified into different 5 main types:<\/strong><\/p>\n

          \n
        1. Strategic Risk:<\/strong> They are the risks associated with the operations of that particular industry. These kind of risks arise from<\/li>\n<\/ol>\n
            \n
          • Business Environment: Buyers and sellers interacting to buy and sell goods and services, changes in supply and demand, competitive structures and introduction of new technologies.<\/li>\n
          • Transaction: Assets relocation of mergers and acquisitions, spin-offs, alliances and joint ventures.<\/li>\n
          • Investor Relations: Strategy for communicating with individuals who have inverted in the business.<\/li>\n<\/ul>\n

            2. Financial Risk:<\/strong> These are the risks associated with the financial structure and transactions of the particular industry.
            \n3. Operational Risk:<\/strong> These are the risks associated with the operational and administrative procedures of the particular industry.
            \n4. Compliance Risk (Legal Risk):<\/strong> These are risks associated with the need to comply with the rules and regulations of the government.
            \n5. Other Risks:<\/strong> There would be different risks like natural disaster(floods) and others depend upon the nature and scale of the industry.<\/p>\n

            (ii) Following are the personal barriers to entrepreneurship:<\/strong>
            \n1. Perceptual:<\/strong> Perceptual barriers that can adversely affect the progress of an entrepreneur and the enterprise. Lack of proper knowledge, lack of clear vision, misunderstanding of a situation, etc. can result in a faulty decisions. These features leave the entrepreneur with limited options and stubbornness in the decisions.
            \n2. Motivational:<\/strong> Regular motivation is an essential for keeping the same tempo in the enterprise. Lack of motivation becomes a strong barrier to entrepreneurship. Many entrepreneurs start with enthusiasm, but when they face some difficulties in the execution of their plans, they lose motivation.
            \n(iii)\u00a0(a) Smart Mobility:<\/strong> Those devices which are mobile help in the growth of business.
            \nSmart mobility is changing the way people interact. Smart devices have become a part of our lives. It includes Mobiles, smart phones, I-pads, I-phones, etc.
            \nIn the last quarter of 2010, sales of smart phones overtook the sale of Personal Computers for the first time.<\/p>\n