Class 12 Entrepreneurial Opportunity Mock Test (CBSE)

Topics in Entrepreneurial Opportunity

• Sensing entrepreneurial opportunities
• Environment scanning
• Problem identification and spotting trends
• Creativity and innovation
• Selecting the right opportunity
• Transforming ideas into opportunities

Entrepreneurial Opportunity practice questions with answers

1. Q1Multiple choice·1 mark
   Ravi finds that most tiffin boxes sold in his town are heavy and hard to carry to school. He designs a light box that children can carry easily. Which statement best explains how his work shows creativity and innovation?

   1. (a)It combines a new idea for a lighter box with a product that solves a real customer problem.
   2. (b)It copies the shape of an existing tiffin box and changes only its colour.
   3. (c)It records how many tiffin boxes are sold each month in a register.
   4. (d)It keeps the design secret so that no other person can ever make a similar box.
   Show answer and step marks

   1. Correct option: (a) It combines a new idea for a lighter box with a product that solves a real customer problem.+1

   Answer: (a)
2. Q2Multiple choice·1 mark
   Meena runs a kitchen at home. She has four business ideas: ordinary table salt packets, a cooking-oil shop in a town that already has five oil shops, sugar-free biscuits for diabetic neighbours who cannot find them locally, and a home delivery of cooked meals with no customers yet. Which idea should she select first, based on demand, competition and her own resources?

   1. (a)Ordinary table salt packets, because they are the cheapest item to produce at home.
   2. (b)A cooking-oil shop, because the town already has many oil shops to buy from.
   3. (c)Sugar-free biscuits for diabetic neighbours, because there is clear unmet demand and she can make them in her own kitchen.
   4. (d)Home delivery of cooked meals, because no other person in the area has tried it.
   Show answer and step marks

   1. Correct option: (c) Sugar-free biscuits for diabetic neighbours, because there is clear unmet demand and she can make them in her own kitchen.+1

   Answer: (c)
3. Q3Short answer·2 marks
   A group of students has an idea for a reusable steel water bottle that can be engraved with a student's name. Before turning the idea into a business, they survey 480 households in a locality and find that 120 of them say they would buy the bottle. (a) Calculate the percentage of surveyed households that showed interest in buying the bottle. [1] (b) If the same percentage holds for 1,600 households in another locality, how many households would be expected to buy the bottle? [1]
   Show answer and step marks

   1. (a) Interested share = $\frac{120}{480} \times 100 = 25\%$+1
   2. (b) Expected buyers = $25\%$ of $1600 = 0.25 \times 1600 = 400$ households+1

   Answer: (a) 25%; (b) 400 households
4. Q4Short answer·3 marks
   A small firm that manufactures plastic carry bags is scanning its environment. Two developments have come to the owner's notice: (i) The state government will ban single-use plastic carry bags from the first day of next month, as notified in the official gazette. (ii) A new low-cost machine for making paper bags has entered the market and is being sold to small manufacturers. (a) Name the external environmental factor to which development (i) belongs. [1] (b) Name the external environmental factor to which development (ii) belongs. [1] (c) State one difference between the two developments in terms of how predictable their effect on the firm is. Give a reason. [1]
   Show answer and step marks

   1. (a) Identifies development (i), a government ban notified by law, as a legal factor.+1
   2. (b) Identifies development (ii), a new machine for making paper bags, as a technological factor.+1
   3. (c) States that the ban has a fixed legal date so its effect on the firm is predictable, whereas the impact of the new machine on demand and competition is uncertain.+1

   Answer: (a) Legal factor. (b) Technological factor. (c) The ban has a fixed date set by law, so its effect is predictable; the machine's effect on the market is uncertain.
5. Q5Short answer·3 marks
   Anita runs a small shop selling school uniforms in a town. In her notebook she recorded three observations over six months: (1) Parents asked for uniforms in size 3 to 5 years on 40 occasions, while requests for all other sizes totalled 12. (2) Two shops in the town stopped selling school uniforms in March. (3) A supplier began offering a new fabric that dries faster. (a) Identify the observation that is the clearest sign of an unmet need for uniforms in size 3 to 5 years. [1] (b) Explain why the closure of the two shops does not, by itself, show an unmet need. [1] (c) Suggest one low-cost way Anita can test demand for size 3 to 5 uniforms before buying stock. [1]
   Show answer and step marks

   1. (a) Correct: observation (1), since repeated parent requests for size 3 to 5 uniforms show customers wanting something that is not adequately available.+1
   2. (b) The closure of shops shows a fall in supply or business, which may reflect weak demand or other reasons, and does not show customers asking for something they cannot get.+1
   3. (c) Suggests a valid low-cost test such as taking advance orders or a waiting list for size 3 to 5 uniforms, or asking about 20 parents whether they would buy at a stated price.+1

   Answer: (a) Observation (1): repeated parent requests for size 3 to 5 uniforms. (b) Shop closures show reduced supply or weak business, not customers asking for an unavailable product. (c) Take advance orders or a waiting list for size 3 to 5 uniforms, or ask about 20 parents whether they would buy at a set price.

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