____________ is the process of setting up your own business as distinct from pursuing any other economic activity.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Entrepreneurship
Option (1) Profession — Incorrect. Practising a profession, like a doctor or a lawyer, is one of the other economic activities. Setting up a business is kept distinct from it.
Option (2) Entrepreneur — Incorrect. The entrepreneur is the person who sets up the business, not the process.
Option (3) Employment — Incorrect. Employment means working for someone else for a salary. It is also kept distinct from setting up one’s own business.
Option (4) Entrepreneurship — Correct. Entrepreneurship is the process of setting up one’s own business, as distinct from other economic activities such as employment or a profession. The person is the entrepreneur, the act is entrepreneurship and the business unit that results is the enterprise.
Note: This question is from the chapter Entrepreneurship Development, which is not in the current NCERT book (2026-27). The chapter is in the pre-rationalised NCERT, from which the extract below is taken. NCERT (Pre-rationalised Edition): “INTRODUCTION Entrepreneurship is the process of setting up one’s own business as distinct from pursuing any other economic activity, be it employment or practising some profession. The person who set-up his business is called an entrepreneur. The output of the process, that is, the business unit is called an enterprise. …” |