(SEM. VII) THEORY EXAMINATION 2017-18 ENTREPRENEURSHIP DEVELOPMENT

SECTION A

(Short questions – explained clearly)

1. Who is an Intrapreneur?

An intrapreneur is an employee who works within an existing organization but thinks and acts like an entrepreneur. An intrapreneur uses innovative ideas, creativity, and risk-taking ability to develop new products or improve processes for the company. Unlike an entrepreneur, an intrapreneur does not own the business but contributes to its growth from within the organization.

2. Define the term NPV and IRR.

Net Present Value (NPV) is a financial technique used to evaluate a project by calculating the difference between the present value of cash inflows and cash outflows. A positive NPV indicates that the project is profitable.
Internal Rate of Return (IRR) is the discount rate at which the NPV of a project becomes zero. It represents the expected rate of return from a project and helps in comparing different investment options.

SECTION B

(Medium questions – conceptual explanation)

3. What are the characteristics of a good entrepreneur?

A good entrepreneur possesses qualities such as creativity, innovation, leadership, and risk-taking ability. An entrepreneur should have confidence, decision-making skills, and the ability to face challenges. Good communication skills and vision are also important to motivate employees and achieve business goals. These characteristics help entrepreneurs identify opportunities and convert them into successful ventures.

4. What is a project life cycle? Explain its phases.

The project life cycle refers to the series of stages a project goes through from start to completion. It begins with the identification stage, where an idea is generated. This is followed by the planning stage, which involves feasibility analysis and resource planning. The execution stage includes actual implementation of the project. Finally, the closure stage evaluates performance and completes documentation. Understanding the project life cycle helps in effective project management.

SECTION C

(Long questions – detailed explanation)

5. Discuss government policies for promotion of small scale industries.

The government promotes small scale industries through various policies and schemes to support entrepreneurship and employment generation. These policies include financial assistance through banks and institutions, subsidies, tax concessions, and easy credit facilities. The government also provides training programs, infrastructure development, and marketing support. Such policies help small industries grow, compete in the market, and contribute to economic development.

6. What do you understand by partnership? Discuss its advantages and disadvantages.

A partnership is a form of business organization where two or more persons agree to share profits and losses of a business carried on by all or any one of them acting for all. A partnership firm is easy to form and manage. Advantages include more capital, shared responsibility, and better decision-making. However, disadvantages include unlimited liability, possible conflicts among partners, and lack of continuity if a partner leaves or dies.