Which of the following statements relating to entrepreneurship and management are true?
A. Primary motivation of management is 'power'
B. Scale of operations for enterpreneurship is large
C. 'Profit' is primary economic reward for enterpreneurship
D. Entrepreneurship maintains 'status quo'
E. Scale of operations for entrepreneurship is small
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option 3 - A, C and E only.
B. Scale of operations for enterpreneurship is large- This is not true as scale of operations for enterpreneurship is small.
D. Entrepreneurship maintains 'status quo'- This is not true as management maintains 'status quo' not entrepreneurship. Entrepreneurship Challenges the status quo i.e. the existing.
Differences between Entrepreneurship and Management
|
Basis of Differentiation |
Entrepreneurship |
Management |
|
Focus |
Business start-up |
Ongoing operations of an existing business |
|
Resource orientation |
The entrepreneur does not feel the constrained by resource. Entrepreneur mobilizes the resources |
A manager is constrained by his resources at his disposal. |
|
Approach to the task |
Informal |
Formal |
|
Primary motivation |
Achievement |
Power |
|
Status vis-a vis the enterprise |
Owner |
Employee |
|
Primary economic reward |
Profit |
Salary |
|
Innovation orientation |
Challenges the status quo i.e. the existing |
Maintains the status quo i.e. the existing |
|
Risk orientation |
Risk-taker |
Risk-averse |
|
Approach to decision-making |
Driven by inductive logic and personal courage and determination |
Driven by deductive logic and research |
|
Scale of operations |
Small business |
Large business |
|
Primary skill requirement |
Opportunity spotting, initiative, resource negotiation |
Organising, systems design and operating procedures, people management |
|
Specialisation orientation |
Generalist has to know and do all the trades by himself |
Specialist |