By Rakesh Nimbole

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IT 402 · Class 10 Employability Skills
CBSE CLASS 10 · ENTREPRENEURIAL SKILLS-II · UNIT 4

Question Bank &
Solutions.

An exhaustive, board-oriented question bank with precise, mark-yielding model answers based on NCERT Unit 4 and the official CBSE Sample Question Paper. Structured systematically into 1-mark, 2-mark, and 4-mark questions.

NCERT In-Text Solutions CBSE SQP 2025-26 Case Studies Solved
BOARD EXAMINATION SCORING STRATEGY

How to structure high-scoring answers.

In CBSE Part A (Employability Skills), questions test conceptual clarity, real-world case identification, and concise comparisons. When writing answers, follow these guidelines:

  • 1-Mark Questions: Give direct, accurate definitions or identify the specific quality/function in one crisp sentence.
  • 2-Mark Questions: Write exactly two distinct, balanced points (e.g., comparing wage vs. self-employment or describing two societal benefits).
  • 4-Mark Questions & Case Studies: State the concept, divide your answer into numbered headings (e.g., the 3 career stages or 4 misconceptions), and cite textbook examples (Bharti, Sheila, Ganesh, or Sanjana).
Essential Key Terms to Use: Self-employment, Wage employment, Calculated risk, Fulfilling customer demand, Local materials, Sharing wealth, Intrapreneurship, Dividing income, Capital, Enter, Survive, and Grow.
SECTION A · VERY SHORT ANSWER QUESTIONS (1 MARK)

Definitions, Key Concepts & Direct Identifications.

Entrepreneurship & Society
  1. What is entrepreneurship?
    Answer: Entrepreneurship is a type of self-employment where an individual runs a business to satisfy the needs of people while continually looking for ways to make the business better and earn profits.
  2. Who is an entrepreneur?
    Answer: An entrepreneur is a self-employed person who strives to improve their business by taking calculated risks and trying new, creative ideas.
  3. An entrepreneur must be ready to take a ____________ and remain open to new ideas to grow their business.
    Answer: Calculated Risk. (Direct question from the official CBSE Sample Question Paper).
  4. What is the primary difference between a traditional businessman and an entrepreneur?
    Answer: A traditional businessman conducts routine trade with established products and low risk, whereas an entrepreneur innovates, experiments with new ideas, and takes calculated risks to expand.
  5. In the plant shop example from the textbook, why is Ramya called an entrepreneur while Ramu is called a businessman?
    Answer: Ramya is an entrepreneur because she actively added new ideas—bundling seeds, flowers, and decorative pots to attract buyers—whereas Ramu merely sat at his counter waiting for walk-in customers.
  6. Define 'Customer Demand'.
    Answer: Customer demand refers to a product or service that people want and are willing and able to purchase.
  7. How does an entrepreneur help lower the market prices of products?
    Answer: When more entrepreneurs enter the market to sell similar products, competition increases, which encourages cost efficiency and lowers retail prices for consumers.
Qualities & Functions
  1. Define the term 'Quality' in the context of an entrepreneur.
    Answer: A quality is a distinctive attribute or characteristic way in which an individual acts, thinks, and behaves.
  2. What is a 'Function' of an entrepreneur?
    Answer: A function refers to the regular operational work, responsibilities, and management activities an entrepreneur carries out every day.
  3. Ali has a diamond cutting factory and pays his employees on the 1st of every month. Which entrepreneurial function is he performing?
    Answer: Dividing Income.
  4. Mary buys lightbulbs from Noida, but upon learning they are cheaper in Faridabad, decides to purchase from Faridabad. Which function is she performing?
    Answer: Making Decisions.
  5. Rehnuma spends one hour every day with her team reviewing their daily tasks and progress. Which function is this?
    Answer: Managing the Business.
  6. Susheela attempts to export company tyres to Sri Lanka, faces losses, apologizes to her staff, and plans a better strategy. Which entrepreneurial quality does she exhibit?
    Answer: Taking Responsibility for Mistakes.
Myths & Career Stages
  1. What is a myth or misconception?
    Answer: A myth or misconception is a false belief or mistaken opinion about something that is not supported by reality or facts.
  2. What is 'Capital' in a business?
    Answer: Capital is the money, financial resources, or assets invested to start and operate an enterprise.
  3. Define the term 'Career'.
    Answer: A career is a chosen line of work or professional occupation that a person pursues over their working lifetime.
  4. Name the three sequential stages in the entrepreneurial career process.
    Answer: Enter (Market Entry), Survive (Market Resilience), and Grow (Expansion & Scaling).
SECTION B · SHORT ANSWER QUESTIONS (2 MARKS)

Explain with Clarity in 20–30 Words.

Core Differentiations & Societal Impact
  1. Compare Self-Employment and Wage Employment.
    Answer: (From CBSE Sample Question Paper):
    • Wage Employment: An individual works for an employer or organization, receives a fixed wage/salary, and carries no direct business risk.
    • Self-Employment: An individual starts and runs their own business to meet customer needs, earns profits, and directly bears the financial risks.
  2. Explain how entrepreneurs contribute to the 'Sharing of Wealth' in society.
    Answer: As an entrepreneur's business expands, wealth circulates through the economy. The entrepreneur pays fair wages to employees and purchases raw materials from local suppliers and farmers, allowing multiple families to earn, save, and improve their living standards.
  3. Differentiate between Customer 'Needs' and Customer 'Wants' with examples.
    Answer: Needs are basic human essentials required for survival (e.g., plain water, basic nutrition, and simple clothing). Wants are desires for specific items shaped by taste and preference (e.g., desiring cold fruit juice instead of water or branded clothes instead of simple wear).
  4. How did Bharti ('The Jewellery Queen') utilize local resources to help her village?
    Answer: Bharti recognized that local girls loved earrings and that village farmers produced abundant jute. She bought raw jute directly from local farmers to craft handmade earrings under Manavi Natural Handicrafts, generating new income for farmers and creating jobs for rural women.
Qualities, Mindsets & Intrapreneurship
  1. Can an employee working in a company be entrepreneurial? Explain.
    Answer: Yes. Any individual who works proactively to solve problems is demonstrating entrepreneurial qualities. When employees think creatively, propose new ideas to improve products, or eliminate workplace inefficiencies, they are being entrepreneurial (intrapreneurs).
  2. Why are 'Patience' and 'Hard Work' considered indispensable qualities for an entrepreneur?
    Answer: Building a profitable enterprise, earning customer trust, and stabilizing cash flow takes significant time. Entrepreneurs must work dedicated, long hours without becoming disheartened during initial dry spells before achieving success.
  3. Explain the entrepreneurial function of 'Dividing Income'.
    Answer: An entrepreneur earns revenue from sales and must distribute this money systematically across various business obligations: purchasing raw materials, paying building rent, disbursing employee salaries, setting aside taxes, and retaining profits for future expansion.
  4. What does 'Taking Calculated Risk' mean in entrepreneurship?
    Answer: Taking a calculated risk means identifying potential business uncertainties (e.g., changing consumer taste, price shifts, or equipment damage), estimating possible losses against projected gains, and preparing contingency plans—rather than gambling blindly.
Myths & Career Progression
  1. Refute the myth: "Every business idea needs to be unique or special."
    Answer: An entrepreneur does not have to invent an entirely new product. One can take a common, existing trade and succeed by executing it differently—such as offering better customer service, eco-friendly packaging, or specialized luxury options (like Ganesh adding luxury cars to a standard rental business).
  2. Refute the myth: "A person needs a lot of money to start a business."
    Answer: While initial capital is necessary, massive funds are not mandatory. Many successful entrepreneurs start small using modest personal savings or family loans (like Kashish's ₹50,000 lightbulb shop), gradually reinvesting profits to expand over time.
  3. Refute the myth: "Entrepreneurs are born, not made."
    Answer: Entrepreneurship is not an inherited genetic trait. It is a mindset combined with practical competencies—such as communication, financial literacy, problem-solving, and resilience—that anyone can learn, practice, and master through experience.
  4. Briefly explain the 'Survive' stage in an entrepreneur's career.
    Answer: In the survive stage, the entrepreneur faces established market competitors. The founder must maintain product quality, provide excellent customer service, manage cash flow, and adapt operations to remain viable and competitive.
SECTION C · DESCRIPTIVE & CASE STUDY QUESTIONS (4 MARKS)

Comprehensive Long Answers (50–80 Words).

Structured Analytical Solutions
  1. Detail any four ways in which entrepreneurs contribute to the growth and development of society.
    Answer Guide (4 Key Points):
    1. Fulfilling Customer Needs: Entrepreneurs identify unmet consumer demands and develop useful, creative products and services that improve the quality of life.
    2. Mobilizing Local Resources: They utilize regional raw materials and hire local craftspeople, lowering production costs while providing steady revenue to native farmers and suppliers.
    3. Creating Employment: By establishing and scaling enterprises, entrepreneurs hire administrative, technical, sales, and manual workers, directly reducing local unemployment.
    4. Encouraging Fair Pricing through Competition: When multiple entrepreneurs offer goods in the same sector, market competition prevents monopolies, forcing businesses to improve quality and lower prices for consumers (e.g., affordable mobile telephony in India).
  2. Explain the five primary functions performed by an entrepreneur in running a business enterprise.
    Answer Guide (5 Core Functions):
    1. Making Decisions: Formulating core business choices daily, including what products to manufacture, sales targets, retail pricing, supplier selection, and distribution methods.
    2. Managing the Business: Planning operational goals, procuring raw materials, delegating responsibilities to staff, and ensuring production schedules are met.
    3. Dividing Income: Distributing total business revenue across essential expenses: raw material procurement, building lease/rent, utility bills, employee wages, statutory taxes, and retained business savings.
    4. Taking Calculated Risks: Anticipating and preparing for commercial hazards such as fire, theft, goods damage, market competition, or shifting consumer demands.
    5. Creating New Methods, Ideas, or Products (Innovation): Constantly upgrading products, introducing eco-friendly packaging, or adopting digital payment systems to maintain competitive advantage.
  3. Explain the four major misconceptions (myths) about entrepreneurship and state the actual reality for each.
    Answer Guide (4 Myths vs. Realities):
    1. Myth 1: Ideas must be completely unique. Reality: Entrepreneurs can take everyday businesses and add a different approach or better service (e.g., Ganesh differentiating a standard car rental business by adding luxury cars).
    2. Myth 2: Vast capital is mandatory to begin. Reality: Many enterprises start with modest personal or family savings (e.g., Kashish starting a lightbulb store with ₹50,000) and grow by reinvesting earned profits.
    3. Myth 3: Only massive corporations are entrepreneurial. Reality: Scale does not define enterprise; an individual adding customer-centric value (e.g., Sheila providing newspapers, emergency numbers, and TV in her taxi) is an entrepreneur.
    4. Myth 4: Entrepreneurs are born with natural talent. Reality: Business skills, decision-making, and financial discipline are learned through education, training, and practical experience.
  4. Explain the 3-stage entrepreneurial career lifecycle (Enter, Survive, Grow) using the case study of Sanjana's grocery store.
    Answer Guide (3 Stages):
    • Stage 1 — Enter: Sanjana assesses her locality, discovers that residents travel long distances for daily provisions, gathers initial capital, and opens a small neighborhood grocery store.
    • Stage 2 — Survive: Other retail stores operate in the area. To survive intense local competition, Sanjana offers extended operating hours, introduces home delivery for senior citizens, maintains fresh stock, and expands her store to two floors.
    • Stage 3 — Grow: Having built a stable, profitable foundation over five years, Sanjana expands her enterprise by opening four new grocery branches across the city and plans expansion into neighboring towns.
  5. Case Study: Read the situation and answer the questions that follow:
    "Gauri lives in an industrial township where thousands of tailor shops operate. Instead of opening a generic tailoring store, Gauri focuses on high-precision stitching for school uniforms, guarantees 48-hour delivery, and sources durable, colorfast fabric directly from textile mills. Within three years, she hires five assistant tailors and secures annual contracts from four prominent schools."
    (a) Is Gauri a traditional businesswoman or an entrepreneur? Justify.
    (b) Which misconception about entrepreneurship does Gauri's success break?
    (c) Identify two entrepreneurial qualities displayed by Gauri.
    (d) Name two ways Gauri's enterprise benefits her local community.
    Answer Guide:
    (a) Entrepreneur: She did not merely copy existing shops; she identified a specific school uniform niche, provided a 48-hour delivery guarantee, and sourced specialized fabrics.
    (b) Myth 1: She broke the myth that a business idea must be completely unique or that crowded markets cannot sustain new ventures.
    (c) Qualities: Creativity (targeting uniform niches with fast delivery) and Hard Work / Decisive Thinking (partnering directly with textile mills).
    (d) Community Benefits: She created direct employment for five local tailors and provided parents with dependable, durable school uniforms at consistent prices.
Self-Evaluation Checklist: For 4-mark answers, ensure you have provided structured subheadings, defined all key terms, and cited textbook case illustrations (such as Bharti, Sheila, Ganesh, or Sanjana) to secure full value points.
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