Entrepreneurial Skills Class 11 Important Questions and Answers
Entrepreneurial Skills Class 11 Important Questions – A Complete Bundle Covering All Topics with Easy-to-Learn Answers, Carefully aligned and following CBSE guidelines.
🟩 Short Answer Questions (1–2 Marks)
Q1. Define entrepreneurship.
Entrepreneurship is a process of developing a business plan, launching and running a business using innovation to meet customer needs and make a profit.
Q2. What are the three types of business activities?
- Manufacturing business
- Trading business
- Services business
Q3. Why is understanding the market important before starting a business?
- Understanding the market helps an entrepreneur test whether a business idea will work.
- It helps identify customer needs, price expectations, buying frequency and location.
- It also helps the entrepreneur study competitors and find ways to make the business different from existing businesses.
Q4. What is a trading business? Give one example.
A business that does not manufacture goods but facilitates bringing finished goods from the manufacturer to the buyer; e.g., Chandra Pharmacy selling medicines.
Q5. What is a services business? Give one example.
A business activity that is intangible, cannot be seen or felt, but benefits the buyer; e.g., Amar, the painting contractor.
Q6. Why should an entrepreneur avoid over-confidence?
Over-confidence may lead to harmful shortcuts, such as selling poor-quality products or overcharging customers. This can make customers lose trust in the business.
Q7. What is open-mindedness?
Open-mindedness means being willing to try new things and being open to feedback from others such as market experts, peers and colleagues.
Q8. What is critical thinking?
Critical thinking means understanding a situation or problem by asking questions such as why, what, when and how and researching the reasons behind it.
Q9. State any three principles of idea creation.
- Customer need
- Entrepreneur’s own interest or talent
- Innovative approach
Q10. Name the three principles for improving and growing a business.
- Quality
- Scaling up
- Adding substitutes
🟦 Long Answer Questions (3–5 Marks)
Q1. What values does a successful entrepreneur have? Write any four values.
- Confidence: Believing in oneself and one’s approach.
- Independence: Being able to work alone and make one’s own decisions.
- Perseverance: Continuing despite difficulties and learning from failures.
- Open-mindedness: Being willing to try new things and accept feedback from others.
Q2. Differentiate between the attitude of an entrepreneur and an employee.
| Entrepreneur | Employee |
| Believes in self, as there is no manager to support | Managed, trained, and supported by someone |
| Directly responsible for delivering value to the customer | May not have direct responsibility towards customers |
| Decides the work and how to do it | Decisions on scope/timing made by a senior |
Q3. What are different ways in which an entrepreneur can think to solve problems?.
- Creativity means coming up with ideas that others have not thought of before.
- Innovation means developing new ideas and finding ways to make them work in real life.
- Critical thinking means understanding a situation or problem by asking questions such as why, what, when and how and researching the reasons behind it.
Q4. Explain the four types of customer needs.
- Served Needs: Needs already fulfilled by businesses or the government.
- Partially-served Needs: Needs served by existing products or services, but customers are not completely satisfied.
- Unserved and Known Needs: Needs known by customers but not fulfilled by anyone in the market.
- Unknown Needs: Needs that people have but are not aware of or do not expect a business to solve.
Q5. Explain the three principles for improving and growing a business.
- Quality: Improving the quality of the product or service can help the business stand out and may justify a higher price.
- Scaling Up: Growing the business by attracting more customers.
- Adding Substitutes: Adding related or alternative products/services to create more value for customers.
⚙️ Competency-Based Questions
Q1. Meena manufactures school bags using cloth purchased from suppliers and converts it into finished bags. Which type of business activity is this?
Answer: It is a manufacturing business
Q2. A shop purchases medicines from pharmaceutical companies and sells them directly to customers. Identify the type of business activity.
Answer: It is a trading business
Q3. An entrepreneur’s first product fails in the market. Instead of closing the business, she studies the failure and tries another approach. Which value is demonstrated?
Answer: Perseverance
Q4. A student has an idea for a device to solve a household problem. He develops the idea, builds it and makes it work. Is this creativity or innovation?
Answer: It is innovation
Q5. Kiran notices that her father struggles to turn his handcart through narrow lanes. She thinks of a new method to solve the problem. Which thinking style is involved?
Answer: Creativity
Q5. An entrepreneur asks: “Why are customers facing this problem? When does it occur? How can it be solved?” Which thinking method is being used?
Answer: Critical thinking
Q6. Before launching a product, an entrepreneur asks customers about their preferences, buying habits and satisfaction. Which method of understanding the market is being used?
Answer: customer survey
📘 Case-Based Questions (5 Marks each)
Case Study 1:
Riya plans to start a small candle business. Before beginning, she identifies her customer group, estimates the material and its cost, decides how and where she will sell the candles and fixes a price. She also decides what will make her candles different from competitors. After starting the business, she introduces scented candles and candles in different colours and sizes. She then tries to attract more customers.
(a) Which stage of the business cycle is Riya following when she prepares these details?
Answer: She is following the business planning stage.
(b) Why should Riya estimate the material and its cost?
Answer: Knowing the required material helps her determine the cost of making each product.
(c) Which part of the business plan explains why customers will buy from Riya instead of competitors?
Answer: The Unique Selling Proposition (USP) explains this.
(d) Which principle of business growth is represented by scented candles and different colours and sizes?
Answer: Quality improvement is represented because she is improving and adding variety to the product offered to customers.
(e) What does attracting more customers represent?
Answer: It represents scaling up, which means growing the business by attracting more customers.
