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Home Questions UWXY69Z6WY
Target Exam

CUET

Subject

Business Studies

Chapter

Entrepreneurship Development

Question:

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:

Options:

A, B and E only

A, D and E only

A, C and E only

A, B and C only

Correct Answer:

A, C and E only

Explanation:

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

 

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