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Indian Institute of Technology Kharagpur

Entrepreneurship Essentials
Assignment- Week 1
TYPE OF QUESTION: MCQ/MSQ
Number of questions: 10 Total mark: 10 X 1 = 10
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QUESTION 1:

Which of the following statements is INCORRECT?

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 start their ventures to create wealth for themselves.
d. Entrepreneurs stimulate new demand by offering products of higher esteem.

Correct answer: c
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Detailed solution
Ideally, entrepreneurs have a vision to solve a problem to make a difference. They identify opportunities
by coming up with a solution to the pains they identify. The wealth they create for themselves is
considered a byproduct.
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QUESTION 2

Which of the following options is NOT right about Corporate Entrepreneurship?

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. Under Corporate Entrepreneurship environment, 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. Under Corporate Entrepreneurship environment, a person within a large corporation takes direct
responsibility for turning a strategic business unit into a profitable unit through assertive risk-
taking, proactive leadership actions, and disruptive 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.

Correct answer: c
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Detailed solution:
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Corporate Entrepreneurship is not related to a strategic business unit. It is about taking up an initiative to
convert one’s own idea into a successful product or service using company resources almost like an
entrepreneur. The strategic business units are headed by managers as profit center heads and is not similar
to corporate entrepreneurship.
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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.

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 persistently strive to innovate to emerge and remain as the most preferred company by
increasing the number of our customers.”

Under which of the following does the above statement (within quotation) fall?
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: a
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Detailed solution
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Clearly, the company wants to emerge as the most preferred choice for their customers and aspire to remain
there in the long run. Therefore, the quoted text is a vision statement
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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 the best quality in our product, services, and all other transactions.
c. We are gender agnostic in selecting manpower and determining employee benefits.
d. We shall not compromise on our margin to maintain the value of our company and investors’ trust.

Correct Answer: d
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Detailed solution
The core values are related to ethics, governance, quality of product or service, 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 in speaking without blubbering and using less jargon.
b. Explaining as elaborately as possible for effective conveying the message so that the listener
understands what is being conveyed.
c. Communicate in a manner that helps the receivers to clearly understand what is intended to be
communicated.
d. Explaining repeatedly to drive home the point clearly and effectively so that the listener
understands what is being conveyed.

Correct Answer: c
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Detailed solution
Effective communication is to convey maximum message with minimum words and minimum time without
ambiguity and without requiring repeating. If the message is not clear and requires repetition, it is bad
communication. 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. Starting a venture to solve a problem through innovation of a new solution that is
superior to those already available in the market.
b. For creating personal, neighbor's, societal wealth.
c. Economic value creation for the country through the creation of jobs, payment of
direct and indirect taxes, promoting social value creation.
d. Be one’s own boss, take charge of one’s own life and decide what you want to
achieve.
Correct Answer: a
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Detailed Solution: While all options are correct, but a new venture should be created to solve a
pain/problem with a better solution than what exists. If one truly fulfills this objective, most other
objectives will naturally be fulfilled. 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 can’t withstand the inextricable early failure and
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 has been
discussed in the lecture?
a. Tolerant to ambiguity
b. Disciplined and self-starter
c. Profit orientation.
d. Remain surrounded by great people
Answer: c

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Detailed solution
Entrepreneurs must be tolerant to ambiguity, disciplined, and self-starters. The old thinking that
business is to make profits is akin to believing that breathing is the purpose of life. Yes, you have
to breathe to live, just as businesses must make profits. But the purpose of business is usually
determined by a passionate entrepreneur chasing a dream to change the world such as solving an
acute pain. Entrepreneurs try to remain surrounded by great people since it is a fact that one is the
average of the people with whom s/he keeps company.
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QUESTION 9:

Which of the following is NOT recognized as a misconception or myth about entrepreneurship?

a. Entrepreneurs are born in business families.
b. Starting an entrepreneurial venture requires a lot of capital
c. One need not be extrovert to succeed in entrepreneurship
d. Knowing and applying cutting edge technologies in a product ensures success.

Correct Answer: c

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Detailed Solution: It has been exemplified with data that many successful entrepreneurs are
introverted.

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QUESTION 10:
Which of the following statements is most appropriate?
a. Entrepreneurship is too risky and is suitable only for those with business
backgrounds.
b. The entrepreneurship intensity of a country explains its per-capita GDP.
c. Entrepreneurs improve the quality of their lives.
d. Entrepreneurship is for the extroverts.
Correct Answer: b

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Detailed Solution: Historical data from across the world clearly show that entrepreneurship
intensity is positively correlated with per-capital GDP of a nation.

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