Read the passage and answer the following questions:

Shilpa Rai is a 37-year old entrepreneur who grew up in a rural district of South Kannada. She was very good at art and craft, particularly wax molds. She loved to make candles. Often she makes toys and small pieces of art with wax and uses them as a gift for her friends and relatives. She is always involved in helping poor women of the area by providing them with jobs after imparting necessary skills. She believes that she is getting her work done as well as helping the needy section of society. Since it is a small business, she performs all the functions of business management herself. But she knows that the workers are not from a sound background, and they need motivation to perform efficiently and effectively. Slowly, the business is growing noticeably as the number of orders is increasing. As the orders are increasing, the production cost is declining. Based on the knowledge. and experience that Shilpa acquired in her business, she smartly handles all the critical situations.

"Based on the knowledge and experience that Shilpa acquired in her business, she smartly handles all the critical situations". This statement suggests that management is based on:

Practice and Creativity

The correct answer is Option (2) → Practice and Creativity

• Knowledge and Experience relate directly to the idea of Practice (learning through doing).

• Smartly handles all the critical situations relates to the application of that knowledge in unique ways, which requires Creativity and judgement.