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Indian Institute of Technology Kharagpur

Entrepreneurship Essentials
Assignment- Week 1
TYPE OF QUESTION: MCQ/MSQ
Number of questions: 15 Total mark: 15 X 1 = 15
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QUESTION 1:

Which of the following statements is incorrect? Choose the option ‘e’ if none of the options is correct or
option ‘f’ in case all the statements are correct.
a) countries with higher entrepreneurial activities generate higher per-capita GDP.
b) The happiness of the population of a country is correlated with the entrepreneurship intensity in
the country.
c) Entrepreneurs bring about the economic value-cycle and sustain it.
d) Entrepreneurs stimulate new demand by offering products of higher esteem.
e) None of the options is correct.
f) All the statements are correct.

Correct answer: f
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Detailed solution
All the statements are correct.
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QUESTION 2

Which of the following options is right? Choose option ‘e’ if all the options are right or option ‘f’ is none
of the options is right.

a) Corporate entrepreneurship is the process by which teams within an established company

conceive, foster, launch and manage a new business that is distinct from the parent company but
leverages the parent’s assets, market position, capabilities or other resources.
b) Employees within the organization are encouraged to behave as entrepreneurs, be creative,
proactive, embrace calculated risk to achieve higher goals in pursuing disruptive innovation
within the larger mission of the organization using the resources, capabilities and security of the
company to draw upon.
c) A person within a large corporation who takes direct responsibility for turning an idea into a
profitable finished product or service through assertive risk-taking and innovation.
d) Intrapreneurship has evolved as a corporate management style integrating risk-taking, innovative
approaches, motivational techniques – more traditionally the province of ENTREPRENEURSHIP
- in the work culture.
e) All the options are right
f) None of the options is right.
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Correct answer: e
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Detailed solution:
All the options are correct.
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QUESTION 3:

i. Full empowerment to act like an entrepreneur without a major part of the risks.
ii. Freedom to experiment within a large organization.
iii. Autonomy: you are the independent driver
iv. All resources (except talent) are provided by the company.
v. You reap the benefit of your creative talent. The sky is the limit.

The above statements are related to

a. Entrepreneurship
b. The position of the Chief Executive Officer
c. Corporate entrepreneurship
d. Subsidiary company.
e. Consultants

Answer: c
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Detailed solution: The statements explain the various features of corporate entrepreneurship
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QUESTION 4:

“We shall take effective steps to improve our customer service for better customer satisfaction.”

Under which of the following statements (within quotation) falls?

a) Vision statement
b) Mission statement
c) Objective
d) Strategies
e) Value.
[Hint: Vision is where a company wants to reach in the long run. A mission statement is a written statement
showing how the company has planned to attain the vision and the purpose of its existence. A strategy is a
particular action that is intended to improve some of the business processes or performance. The differences
between mission and strategies are slightly blurred, but they are different. Objectives are goals to be
achieved against a certain strategic action. The values are the principles and ethics that the company follows
and would not compromise on.]

Correct Answer: d
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Detailed solution
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The statement represents a new strategy of the company to improve customer satisfaction. Better customer
satisfaction will lead to higher customer acquisition at lower cost and with all other values that the company
provides or will provide will lead to achieving their mission. Achievement of mission is a right step toward
achieving the vision. Qualities. Thus, all right actions by a company lead to incremental value towards its
journey to the vision. But setting the right strategy, executing them effectively, and working strictly within
the boundary of defined values will help it achieve its mission. Successes in many missions would lead to
attaining the vision. The answer, therefore, is ‘d’. The company has formulated a strategy to take effective
steps in improving customer satisfaction.
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QUESTION 5:

Which of the following is not part of the core values of a company?

a) There will be absolute transparency in our deals.
b) We shall maintain a healthy profit margin to ensure value for our shareholders.
c) We shall maintain the best quality in our product, services, and all other transactions.
d) We are gender agnostic in selecting manpower and determining employee benefits.
e) We shall not compromise on environmental health while targeting higher profit.

Correct Answer: b
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Detailed solution
The core values are related to ethics, governance, honesty, compliances of regulations, national & social
responsibilities and environmental protection. Profitability is primarily related to the owners of an
enterprise and is not part of the core values. [It is, however, notable that the companies maintaining
great values sustain in the long run and remain profitable.]

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QUESTION 6:

What does effective communication mean?

a) Fluency is speaking without blubbering and using less jargons.
b) Explaining as elaborately as possible for effective conveying the message so that the listener
understands what is being conveyed.
c) Explaining with examples to drive home the point clearly and effectively so that the listener
understands what is being conveyed.
d) Conveying maximum information with minimum words without ambiguity so that the listener
understands what is being conveyed.
e) Using simple English instead of flowery language or poetic language.

Correct Answer: d
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Detailed solution
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Effective communication is to convey maximum message with minimum words and minimum time without
ambiguity. Some people traditionally try to explain in a lengthy roundabout way and the target audience
gets more confused than becoming clear as to what is being tried to convey. In most such cases, the audience
either take no action or take wrong action. If the communication is clear, the target people will take the
right action and it will serve the purpose well.
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QUESTION 7:

Which of the following is the most compelling motivation for one to become an entrepreneur?

A. Creating personal, neighbor's, societal wealth.

B. Economic value creation for the country through creation of jobs, payment of
direct and indirect taxes, promoting social value creation.
C. Be one’s own boss, take charge of one’s own life and decide what you want to
achieve.
D. Solve the environmental problem so as to make the world a better place for the
next generation.
E. Starting a venture with a vision to solve an acute problem of a group of people
who are crying for a better solution and you are confident of coming up with one.
Correct Answer: e
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Detailed Solution: While all options are correct to some extent, but the point at (e) is the most
compelling. In my lecture, I have pointed out that one should not start a venture for personal wealth
creation alone. This is because new businesses mostly go through a lot of stress and founders with
a vision remain less perturbed with early failures. Whereas, those who create new ventures only
for earning money and meet with early failure, they are so devastated that they lose all motivation
to fight any longer. They would soon give up.
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QUESTION 8:
Which of the following is not part of the entrepreneurial qualities based on whatever have been
discussed in the lecture?
a. Tolerant to ambiguity
b. Disciplined and self-starter
c. Empathy for customers
d. Risk avoiding
e. Remain surrounded by great people
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Answer: d

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Detailed solution
Entrepreneurs do not avoid risk. They take calculated risks because without risk there is hardly
any opportunity for creating more than average rate of growth. If an opportunity is found that is
not associated with much risk, chances are that you are either missing a point or it is fake.
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QUESTION 9:
Which of the following is NOT part of good people skills as regards to efficient management of
an enterprise? Choose the one appearing to be the weakest among the lot.
a. Building a network with people.
b. Empathizing with the employees.
c. Capability to drive a hard bargain.
d. Ability to excite people by sharing the vision.
e. Ability to resolve conflict.
Answer: c
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Detailed answer: Bargaining is remotely a people skill and it is not necessarily good people
skill. Those who can drive a hard bargain may not always win. All other options are very critical
for sustainable growth of a venture. Hard bargaining power is the weakest among the options.
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QUESTION 10:
Which of the following statements is most appropriate?
a. Entrepreneurship intensity of a country explains the quality of life of its citizens.
b. Entrepreneurship is too risky and is suitable only for those with business
backgrounds.
c. Entrepreneurs improve the quality of their lives.
d. Entrepreneurship is for the extroverts.
e. None of the above.

Correct Answer: a

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Detailed Solution: Entrepreneurship index is positively correlated with per-capital GDP of a

nation. Per-capita-GDP of a nation is directly correlated with the quality-of-life index.

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QUESTION 11:

Which of the following is NOT recognised as a misconception about entrepreneurship?

a. Entrepreneurs are born in business families.

b. Entrepreneurs are extroverts.
c. Starting an entrepreneurial venture requires a lot of capital
d. A large part of entrepreneurial knowledge can be learnt
e. Knowing and applying cutting edge technologies in a product ensures success.

Correct Answer: d

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Detailed Solution: It has been empirically documented that entrepreneurship can be learnt.
Therefore, it is not a myth.

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QUESTION 12:
You want to start an ecommerce company. You target the niche market of hand-made goods.
You have written the following statement:
“We shall strive to enhance the productivity, improve the quality of products, reduce the
drudgery (improve health) of Indian artisans so that they can maintain competitive advantage
over their competitors.”
What can this statement be termed as?
a. Objective
b. Mission
c. Strategies
d. Values
e. Execution

Correct Answer: b

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Detailed solution: It is the mission statement as it indicates a medium term aim of the company
and how it intends to maintain competitive advantage over the competitors. The statement
explains how the company intends to eventually achieve the long-term vision.

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QUESTION 13:
Which of the following best defines empathy?
a. The ability to understand and share the pain of others.
b. Engaging in charity for the poor and the needy so that they become part of the
mainstream.
c. The process of realizing the depth and spread of the pain of others by suffering it.
d. The ability to sympathize with others by deeply understanding their situations
through interactions and research.
e. The ability to realize the aspirations, likings and preferences of customers by
close observation and deep analysis.

Correct Answer: c

Detailed solution: Empathy is to understand the pain of others by suffering it. Usually, it is
difficult to fully understand and appreciate others’ pain. But if one tries to be one of the people
suffering the pain, s/he would better understand the nature and severity of the pain.

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QUESTION 14:

What to expect as a company by promoting corporate entrepreneurship? Choose the most direct
advantage in case there are multiple possible answers.

a. Full empowerment to think out of the box and act like an entrepreneur without major part
of the risks.
b. Accelerate product development.
c. Clearly describe the rationale of how an organization creates, delivers, and captures
value.
d. Create and maintain competitive advantages.
e. Promote export, globalize the business, and make progress towards emerging as a
multinational.

Answer: b

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Detailed solution: By promoting corporate entrepreneurship, companies can unlock the creative
talent of its employees that may lead to faster product development and innovation of new
products in quick succession.

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QUESTION 15:

What to expect as an employee (with regards to corporate entrepreneurship)?

a. Achieve sustainable growth in the era of innovation-driven economy.

b. Full empowerment to think out of the box and act like an entrepreneur without major part
of the risks.
c. Better products and services for better customer satisfaction.
d. Describes the rationale of how an organization creates, delivers, and captures value
e. Foster creativity and innovation in products, services, and processes and creation of more
value.

Answer: b

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Detailed Solution: Corporate entrepreneurship offers unique opportunities to employees as the

company offers all necessary support along with dedicated time out of the regular duty hours and
does not interfere in the activities to be taken up. In the process, employees become free to think
out of the box, experiment, and invent new knowledge that may help create great wealth for self
and the company.

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