NCERT Solutions Entrepreneurship Class 12 Chapter 8 Notes PDF

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Entrepreneurship Class 12 Chapter 8 Notes PDF, NCERT Solutions Entrepreneurship Class 12 Chapter 8 Notes PDF, NCERT Solutions Entrepreneurship Class 12 Chapter 8 Notes

Entrepreneurship Class 12 Chapter 8 Notes PDF

Class12th 
Chapter NameEnterprise Management Enterprise Management
Chapter number08
Book NCERT
SubjectEntrepreneurship
Medium English
Study MaterialsImportant questions answers
Download PDFEntrepreneurship Class 12 Chapter 8 Notes PDF

Enterprise Management Enterprise Management


Questioning plays an important role in running any business or industrial organization efficiently. Due to efficient management system, a business organization becomes successful in its work. 

Arranging the resources and work of an enterprise in such a way that it achieves its desired goals is called management. It is also an art because it involves innovation, interaction, insight, creativity and the ability to take risks. Besides, management is also a science because it runs on scientific principles.

Entrepreneurship is a systematic innovation that consists of the purposeful and organized search for change and a systemic analysis of the opportunities such change can provide for low-cost and social innovations. 

NCERT Solutions Entrepreneurship Class 12 Chapter 8 Notes PDF

Under entrepreneurship, the entrepreneur establishes the enterprise and operates the business by facing risks and uncertainties and tries to earn profit.

There is a difference between entrepreneurship and management, because entrepreneurship is the spirit of an enterprise, whereas management is both the art and science of achieving the objectives of an enterprise. 

In entrepreneurship the entrepreneur plays his role, in management the manager plays his role. Also an entrepreneur is a successful manager whereas a manager is not a successful entrepreneur. An entrepreneur has various management responsibilities. In this regard, self-management and enterprise

There are responsibilities like management. An entrepreneur can have various abilities, such as generating new ideas, making new changes or innovations, having the ability to take risks, having a high personality, having the ability to implement the plan, having self-confidence, being oriented towards problem solving. And having the quality of perseverance etc.

The clear processes of planning, organizing, completing work and controlling both human and material resources to achieve a chosen objective are called management of an enterprise. When the enterprise is managed well then the enterprise or enterprise is successful.

The success of an enterprise depends on good communication. Communication generally means sharing of ideas. This leads to exchange of ideas. Communication should contain meaningful information and clear ideas. This information or message must be in writing. The management system must be flexible to adjust to changing needs and environment. 

There are mainly three types of communication which are called oral communication, written communication and symbolic communication. Verbal communication takes place through mutual conversation and through mouth, such as face-to-face conversation, telephone and mobile conversation, holding meetings and conferences, etc., is verbal communication. 

Written communication takes place in written form, such as letter, annual report, memorandum, office publication, fax, report, television, film slides, computer, newspaper, diary etc. are the mediums of written communication. Exchange of information through the use of signs or posters is called symbolic communication. For example, shaking hands warmly, hugging, patting on the back in appreciation and giving signals for any communication is called symbolic communication.

When an entrepreneur takes appropriate decisions regarding his business or industry, he becomes successful in his business. Decision making means selecting a course of action from several options and taking an appropriate decision on it. When related to entrepreneurial or adventurous business and industry. If one takes appropriate decisions according to the environment and situation, then opportunities can be taken advantage of. As a result the venture becomes successful.


VERY SHORT ANSWER TYPE QUESTIONS


1. What is the meaning of management?

Ans. The word management is used in many meanings. Sometimes used to manage a group of managerial personnel working in an organization. At other times, management is taken as the process of planning, organization, personnel, direction, coordination and control. 

It is known in the form of knowledge, behavior and discipline. Many people consider it a technique of leadership and decision making or a means of coordination and some people consider management as an economic instrument, a component of production or a system of acquisition.

2. Write the definition of management given by Henry Faol. 

Ans. While giving the definition of management, Henry Fiol has said that management is a plan. There is organization, there is command, there is coordination, there is control, there is gathering of financial resources, there is looking ahead and planning is done for future examination and action.

3. What is entrepreneurship?

Ans. Entrepreneurship is a systematic innovation that involves the purposeful and organized search for change and the systematic analysis of opportunities such change can provide for cost-effective and social innovations.

4. What is the relationship between entrepreneur and enterprise?

Ans. The relationship between the entrepreneur and the enterprise is similar to that between the soul and the body; the entrepreneur provides direction and energy. Whereas the enterprise processes the investment and converts it into production. To make any business successful, the entrepreneur has to play a dual role. One is that of an entrepreneur and the other that of a successful manager. 

5. What are the two responsibilities of an entrepreneur?

Ans. The two responsibilities of an entrepreneur are – (i) Self-management – ​​This includes gaining and maintaining entrepreneurial spirit and inspiration. (ii) Enterprise Management – ​​This includes managerial process and managerial work.

6. What is organization?

Ans. Organization is the process of establishing relationships among the members of an enterprise. These relationships are made according to rights and duties. Each person is assigned a specific task. Along with this, the right to do that work is also given.

7. What do you understand by communication?

Ans. The word communication is derived from the Latin word Communis which means common. Therefore, communication means sharing of ideas in general. That is, communication is a shared role between two or more people to understand facts, ideas, opinions and feelings.

8. What does it mean to take a decision?

Ans. Decision making means taking action by selecting one option from various alternatives. This is the seedbed of planning. By taking right decisions the enterprise or entrepreneur becomes successful.


SHORT ANSWER TYPE QUESTIONS


1. Define management and explain its meaning.

Ans. Arranging the resources and work of an enterprise in such a way that it achieves its desired goals is called management. It is also an art because it involves innovation, interaction, insight, creativity and the ability to take risks. Moreover, management is also a science because it works on scientific principles. Definition of Management

(i) According to Henry Fayol, “Management consists of planning, organization, command, coordination, control, looking ahead, mobilizing finance, examining the future and planning work.” “Plans are made for.” 

(ii) Henry S. According to Sisk, “Management involves coordinating all means: by planning, organizing, directing and controlling so as to achieve stated objectives.” 

Entrepreneurship is the spirit of enterprise. Entrepreneurship is a French word (Entrepredure), which is used to describe a person who initiates a work and takes the risk of a new venture.

2. Define entrepreneurship and explain its meaning.

Ans. Many attempts have been made to define entrepreneurship. It depends on what the need is and who the person is trying to achieve. According to Richard Cantillon, “was a French economist who was originally a resident of Ireland. He defined entrepreneurship as follows in his book which was published after his death in 1755.

“An entrepreneur is a person who pays a fixed price to sell a product at an uncertain price. “With this, he takes decisions about obtaining and using resources, which involves the risk of the enterprise.” 

Adam Smith is an economist who is world famous for various theories of economics. In his book titled ‘Wealth of Nations’ he defines entrepreneur as follows: An entrepreneur is a person who starts forming an organization for commercial purposes in view of the potential demand for goods and services. By doing this he acts as a cost-effective agent and converts demand into supply.” 

Thus, entrepreneurship is “a systematic innovation that consists in the purposeful and organized search for change and the systematic analysis of opportunities such change can provide for social innovations.” 

3. Explain the difference between entrepreneurship and management.

Ans. Following are the differences between entrepreneurship and management-

EntrepreneurshipManagement
1. It is the spirit of an enterprise.It is the art and science of achieving the objectives of an enterprise.
2. An entrepreneur is a successful manager.A successful manager is not an entrepreneur.
3. In entrepreneurship, new goods are made according to the environment.In management, the manager maintains all the records and discipline.
4. In entrepreneurship the entrepreneur does the right thing.The manager does the right thing in management.
5. Entrepreneurship is related to the production of goods.Management is concerned with the distribution of goods and services.

LONG ANSWER TYPE QUESTIONS


1. Describe the management responsibilities of an entrepreneur. responsibilities of an entrepreneur.) (Discuss the management 

Ans. An entrepreneur has two responsibilities-

(a) Self-management (entrepreneurial qualities and motivation) (b) Enterprise management.

(a) Management of Self: The word entrepreneur is for those people. Those who produce new ideas and provide added value to the society through their independent initiative. They are mission-oriented and committed to constructive change

And gather the necessary resources and energy in such a way that they get the desired results. To perform the entrepreneurial role effectively an entrepreneur must be creative and innovative. The entrepreneur may also have to organize his own motivation.

The following are the qualifications of an entrepreneur:

(i) Creativity

(ii) New changes or new discoveries (Innovation)

(iii) Ability to take risk

(iv) Taking Initiative

(v) Attaining standards of excellence

(vi) Orientation to Problem Solving

(vii) Persistence

(viii) Faith and commitment to a planning paradigm

(ix) Information seeking and concern for people and environment

(x) Self Confidence.

(i) Creativity: This involves the creative process- 

(a) Generation of Idea (Idea Germination) The state of generation is the process of seeding like natural seed sowing which takes place when the seeds scattered by the wind of a pollinated flower find fertile soil and take root. Creative ideas arise from a person’s interest or curiosity in some field of study or about a particular problem.

(b) Preparation: Once the seed of curiosity grows in the form of an idea, the person starts searching for answers. If the idea is about a new product or service, then one needs to go to the market for research. 

(c) Incubation – This is the time for assimilation. Whatever thought or its various extensions arise become part of that person’s subconscious knowledge. 

(d) Illumination ——The fourth stage of enlightenment comes when the idea re-emerges in a real form and the person makes a viable plan for it. 

(e) Verification – When the ideas or plan are converted into actual and profitable use, then it can be said to have reached the verification stage. Verification is a developmental stage in which knowledge develops and comes into use.

(ii) New changes (Innovation) This is the process of entrepreneurship. In this, beneficial ideas are converted into experiments which have importance in the business world.

2. What is communication? What is communication Explain its characteristics?

Ans. Communication: This word is derived from the Latin word Communis which means “common”. Therefore, communication means “common sharing of ideas” and can be defined as a shared understanding of facts, ideas, opinions or feelings between two or more people.

Features of Communications

(i) The first and foremost characteristic of meaningful communication is that every information should have a meaning. Information and instructions without meaning are of no use.

(ii) Clear: The message, idea, instruction should be clear to both the giver and the recipient.

(iii) Appropriate – The idea, message or any other form should be appropriate and can be understood by everyone.

(iv) Written messages should be written.

(v) Flexibility—to adjust to changing needs or environment. A good system must be flexible. (vi) Two-Way-Communication: For communication there should be two parties, one is the sender and the other is the receiver.

3. Describe the types of communication. (Discuss the different types of communication.)

Ans. 1. Verbal Message (Face to face Communication)Entrepreneurship (XII) Verbal Message (Verbal Communication)

Oral means by speaking or by mouth. In this, conversation takes place through mouth. Some types of oral communication are—(i) Face to face discussion, (ii) Telephone, intercom, mobile phone, (iii) Meetings, conferences, (iv) Announcement.

2. Written Communication

Written communication means sending information in written words. There are many types of these, the main ones are given below-

(i) Downward communication – i.e. orders, circulars, policies, procedures, manuals, literature, magazines, booklets etc.

(ii) Upward communication i.e. performance report of Awadhi Pragati, Inquilab others.

Written modes of communication

(a) Letters usually indicate the type of paper, quality of typesetting, open writing, margins and even the design and type of printed letter head etc. about the enterprise. Therefore, the entrepreneur should pay attention to each of the above mentioned things.

(b) Annual Reports: The annual report of the business provides information to the shareholders, buyers and business promoters. Live presentation of state policies and work performance increases the confidence of the organization.

(c) Memorandum Internal memoranda circulated continuously in most offices provide information and/or instructions as part of everyday administration.

(d) Official Publication: A lot of information about the enterprise is available in the form of text or tables. These publications are in the form of newsletters or periodicals.

(e) Telex or Fax (Telex and Tax) – Telex is one of such modern methods of communication. Which also includes an element of telecommunication. It is very fast and also has a provision for replying to letters. What is more important about telex and fax is that it is written.

(f) Report – Report is a very important and written communication. According to whose nature and objectives the businessman presents many facts, options etc. and expresses his conclusions and recommendations. Generally reports are (i) routine (ii) special

(iii) Statutory (iv) Technical type.

(g) Yellow Pages: Communication between the entrepreneur and his customers is becoming very popular through “Yellow Pages”. This method of finding firms with the required specifications is very effective. Due to the details of products, services and features provided in these pages, including contact details, addresses and telephone numbers, the problem can be resolved quickly and the person concerned

Let’s bring it along. (h) Audio Visual Aids – Many audio visual means of communication are available. These tools are often used for external communication with buyers and promoters. These visual aids include television, films, slides, over head projector, computer, newspapers, diaries etc.

3. Gestural Communication –

The medium of conveying information through the use of signs or posters is called symbolic communication. This instrument is not very popular and its role is limited. a select few

5. Explain decision making and the various steps involved in it. (Explain decision making and the various steps involved.)

Ans. Making a decision means choosing a course of action from among several alternatives. This is the seed fund of planning. Unless there is a decision, commitment of resources, direction or iteration, planning cannot be said to exist. Therefore, the things that should be considered in the process of taking a decision are-

(i) be promising, (ii) identify the alternative, (iii) evaluate the alternative in the light of the achievable goal and (iv) select the alternative. This is called decision making.

There are eight processes in the basic methods of decision making which are as follows – (i) Defining the problem – When a plan does not go as per our intention then a problem arises. It is never easy to define a problem in order to find the root cause that needs fixing. Still, one has to find out the problem so that the root of the problem can be found.

(ii) Analyzing and identifying the situations: First of all, a person should clearly know what is the situation whose solution is being tried. Sometimes the matter is simple. For example, there is a vacancy in the staff and you want to fill it by promoting one of several possible subordinates on the staff. Come

You will have to decide to choose one of them. Sometimes some situations may not be clear or a department in your jurisdiction may not be performing well. You will have to consider the circumstances before taking a decision for its improvement. We have to find out what the error is and why it has happened?

(iii) Collecting information – Once the problem has been identified and stated, the next task is to collect facts. The more facts will be collected for any action. The less risk involved. Trying to make decisions without facts would be like standing at an intersection and trying to follow the directions without reading the road signs.

guess. It is not always necessary to conduct investigation after collecting facts bearing on the problem. Perhaps many people think that facts arise only by surveying and proving. Perhaps they forget that facts are always the same. Surveying does not create them but merely makes them clear.

(iv) Developing Alternatives – In every situation in which a decision needs to be taken, there are two actions – for example – take action or do not take action. For example, to fill the vacancy of an executive officer, it may be left unfilled. Can be rented from outside.

The open job may be filled by promoting a person who is not aware of it. By conducting some kind of test that makes it possible to grade the abilities of applicants for that job. Can be filled by asking for volunteers.

(v) Comparing Alternatives: In some cases the executive fortunately has an alternative which may provide 100% satisfaction. Generally each option has some advantages and disadvantages. There is no option which requires a lot of expenditure or manpower. Where there is any difficulty in taking a decision, it is better to write down the advantages and disadvantages of each option and then they can be compared.

(vi) Selection of best Alternatives—–— After carefully analyzing various alternatives, the best alternative should be selected. Sometimes analysis leads to several options which have similar properties. Considering future uncertainties, it seems logical to select more than one option. One of them should be accepted and the other should be reserved.

(vii) Formulation of Supporting Plans – The main plan of the organization is prepared by finding out the options, analyzing them and selecting the best among them. To give practical shape to this main plan, many subsidiary plans are required. For example, if out of the four options given, the second option is declared the best. So it can be accepted.

(viii) Implementation of Plans: After the main and subsidiary plans are decided, they have to be implemented. After implementing the plan, the sequence of various tasks is decided. In other words it is decided who will do it and what it will do and when it will do it. This makes it easier to achieve the objectives of the organization.

6. Write the definition of management.

Ans. Definition of Management – ​​Different authors of management have defined the word management in different ways. Following are some definitions of management on the basis of address:

(i) According to Mary Parker Follett, management is the art of getting work done from other people.”

(ii) According to Frederick Winston Taylor, management

“First of all, find out what you want people to do and then decide how they can do it in the cheapest and best way.” 

(iii) Peter F. According to Peter F. Drucker, management is a multidimensional organ that organizes a business manager, workers and work.” 

(iv) George R. According to George R. Terry, “Management is a specific process by which planning, organization, operation, control of work is done and the fulfillment of the goals set by people and resources is ensured.” 

(v) According to Harold Kohz, “It is the art of getting work done through and through individuals in the form of formal groups.”

After observing these definitions, management can be defined as getting work done by others. In other words, it is the process of performing various functions and planning, organizing, coordinating, leading and carrying out business operations in such a way that the objectives of the business firm are achieved. It includes all activities ranging from business planning to its actual execution.

7. Describe the areas of management. (Discuss the scope of management.)

Ans. The field of management can be classified into two categories – (i) Subject Matter of Management – ​​Under this

There are various functions of management like planning, organization, personnel, directing and controlling which are discussed later in the lesson.

(ii) Functional Area of ​​Management – ​​Under this aspect, the following tasks come under management:

(a) Financial Management – ​​It includes financial aspects of business like cost control, budget control, management accounting etc. 

(b) Personnel Management – ​​It includes various aspects of the personnel of an enterprise such as recruitment, training, promotion, demotion, dismissal, industrial relations, social security, labor welfare etc.

(c) Production Management – ​​It includes production related aspects. Such as production planning, control, variety control etc.

(d) Office Management – ​​This includes office design, personnel, equipment design etc.

(e) Marketing Management – ​​It is related to the marketing aspects of the products produced by the business, it includes pricing, distribution systems (channels), marketing research, sales promotion and advertising etc.

(1) Maintenance Management: It is related to the maintenance and proper arrangement of business property, plant, machinery and furniture.

8. Mention the objectives of management. (Describe the objectives of Management)

Ans. (i) Proper Utilization of Management-

The main objective of management is to use various resources of business in an economical manner. The main objective of management is to satisfy various aspects of proper earned profits by proper utilization of people, material, machinery and money. 

Owners expect more returns from the management while employees, customers and the public expect good behavior from the management. All these interests will be satisfied only when the physical resources of the business are used properly.

(ii) Improving Performance: The aim of management is to improve the performance of each component of production. The environment should be so pure that workers can devote their maximum capacity. The performance of production components can be improved by setting proper targets.

(iii) Mobilizing Best Talent – ​​Management should deploy people in different areas in such a way that best results are achieved. Appointment of experts in various fields will increase the efficiency of production components, there is a need to create a better environment so that good people get inspired to join the particular enterprise. Good salary, proper facilities, future growth prospects will attract more people to join the business.

(iv) Planning for Future: The important objective of management is to prepare plans. No management should be satisfied with the present work if it does not think about tomorrow. Future plans decide what to do next. Future success depends on present planning. Therefore, planning for the future is necessary for any business organization.

9. Describe the importance of communication in management.

(Discuss the importance of communication in management.) 

Ans. Importance of Communication in Management – ​​Communication is as important for the organization as blood is for the body. The success of all managerial work depends on effective communication system. Through communication, the work going on in the organization is explained, changes can be effected, unity can be established in various tasks by awakening the spirit of cooperation among all the people working in the organization. 

Pure human relationships can be established. A common feeling of being a part of the enterprise can be developed among the employees of the enterprise and ultimately the objectives of the organization can be achieved. A person working at any level in an organization cannot succeed or achieve his goals without communication and establishing cooperation between the people above and below him. In modern times, communication system is necessary for every person working in an organization. 

People higher in the hierarchy in the organization spend more time in communication, while people lower in the hierarchy spend less time in communication. According to a study, a manager spends 40 to 60% of his time in the communication process. The importance of communication can be understood from the following explanation-

(i) Basis of Decision Making: In the absence of communication, it is not possible for the top management to take decisions. Before taking a decision, a final form emerges by collecting various relevant information. 

Decision related information can be collected only through communication. Not only this, implementation also depends on communication. Without communication it cannot be certain what has been said? what was done? What is being done? And what do you want to do?

(ii) Basis of Co-ordination: With the expansion in the size of business, the importance of communication is increasing. These depend on units, division of work and specialization. In big industries, work is completed without any hindrance only because of coordination. To achieve cooperation, it is necessary for every person in the organization to have mutual understanding about the objectives of the enterprise and to know by which tasks the objectives of the organization can be achieved. They should be informed about the works. This is possible only through communication.

(iii) Increases Managerial Efficiency – Regular and quick execution of managerial firms is possible through communication system. Through communication, managers give information about specific objectives of management to various people, give instructions, distribute work and responsibilities and exercise control over the work of subordinates. Therefore, in the absence of communication, everyone remains inactive and in the presence of communication, he increases his efficiency.

(iv) Establishment of Effective Leadership – To be a successful leader, a manager should know the art of communication. In other words, without future communication, it is useless to imagine effective leadership. A manager can become an efficient leader by improving communication. A good communication system to employees

Brings them closer to each other and removes their differences. (v) Promoting Industrial Peace: Industrial peace means establishment of cordial labor management relations. at minimum cost per unit

Wants to earn maximum profit. This is possible only when there is cooperation between labor and management, for which a cordial environment is necessary. Two-way communication is essential for a pure environment. Through downward communication, the manager tells the subordinates what work to do. Through cross-communication, subordinates convey their suggestions, reactions and complaints to the management. In this way both sides get an opportunity to present their respective views. Which increases industrial peace.

(vi) Effective Control: Communication has special importance in the control process. Through communication medium, managers get information about work performance on the basis of which they correct the irregularities in time. Amendments can be made to future plans based on the information received.

(vii) Basis of Organizational Image: The importance of communication is not only important within the enterprise but is also necessary for the outside world. Many parties have an interest in the progress of the enterprise – shareholders, creditors, government, etc., which is expressed through communication. The enterprise improves its image by informing external parties about its progress. The enterprise gains the trust of the entire human race by protecting their interests through the company’s fulfillment of social responsibilities. Hence communication throws light on the progress of the organization.

The above facts make it clear that communication is the key to the success of a business enterprise. Success is automatic for an organization whose employees know the art of communication. In this context it is said that good communication system is the foundation of strong management.

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