UG SEM 4 , Entrepreneurship and Startup Ecosystem, SECOND INTERNAL EXAMINATION FEBRUARY 2026

 

Answer key

1.What are the key characteristics of an entrepreneur?

·         Commitment and determination

·         Leadership

·         Opportunity obsession

·         Tolerance of risk, ambiguity and uncertainty.

·         Creativity, self-reliance and ability to adapt

·         Motivation to excel.

2. Explain the personal sources of business ideas?

·         Personal experience and observation

·         Hobbies and interests.

·         Talent and skills

·         Friends and family

·         Business partners

·         Employee ideas

·         Dream approach

3. Which are the two techniques that entrepreneurs use for assessing the industry?

·         Studying industry trends

                                   1)environmental trends

                                   2)business trends

·         Five forces model

                                   1)threat of substitutes

                                   2) threat of new entrants

                                   3) rivalry among existing firms

                                   4)bargaining power of suppliers

                                   5)bargaining power of buyers

4. Explain social media marketing?

Social Media Marketing (SMM) is the process of using social media platforms to promote a brand, product, service, or idea and connect with people online.

5. Compare supply chain and value chain?

Aspect	Supply Chain	Value Chain
Meaning	Network involved in producing and delivering a product	Activities that add value to a product or service
Focus	Flow of goods and materials	Value creation and competitive advantage
Scope	Procurement → Production → Distribution	Design → Production → Marketing → Service
Objective	Efficiency and cost reduction	Customer satisfaction and value maximization
Orientation	Operational and logistics-oriented	Strategic and customer-oriented
Concerned with	Suppliers, manufacturers, distributors	Firm’s internal and external activities
Outcome	Product reaches the customer	Product delivers superior value

 

6. Explain copyright, trademark and trade secret?

Copyright is a legal right that protects original creative works.

What it protects

• Books, articles, poems
• Music, films, videos
• Software, computer programs
• Paintings, photographs

Trademark

Trademark is a sign or symbol that identifies and distinguishes a brand.

What it protects

• Brand names
• Logos
• Symbols
• Slogans

Trade Secret

A Trade Secret is confidential business information that gives a company a competitive advantage.

What it protects

• Formulas
• Manufacturing processes
• Business strategies
• Customer lists

 

7. Explain venture capital with its advantages and disadvantages?

Venture Capital (VC) is a form of financing provided to new, innovative, and high-growth potential businesses (startups).

Advantages

No obligation to repay

Access to network and connections

Facilitate rapid expansion

Expert guidance

Disadvantages

Time consuming funding process

Loss of full control and ownership

Highly competitive

 

                                                                                     (5*3=15 Marks)

 

Section B

Answer any 4 questions. Each question carries 5 marks.

8. How does risk tolerance help entrepreneurs in decision making?

Risk tolerance plays a crucial role in how entrepreneurs make decisions because it shapes what risks they are willing to take and how they respond to uncertainty.

Guides opportunity selection

Improves speed of decisions

Supports innovation and growth

Helps manage uncertainty

Aids resource allocation

Builds resilience

9. Discuss the various approaches to identify an opportunity?

Observing trends

Solving a problem

Finding gaps in the marketplace

                                               Economic forces

                                               Social forces

                                               Technological advancements

                                               Political and regulatory changes

10. Discuss on evaluation of industry using five forces model?

                                   1)threat of substitutes

                                   2) threat of new entrants

                                   3) rivalry among existing firms

                                   4)bargaining power of suppliers

                                   5)bargaining power of buyers

 

11.  Discuss about various funding options available for ventures?

Personal

                                               Debt, equity

Public

Private – venture capital, angel investors.

12. Discuss about components of startup ecosystem?

Infrastructure

People

Government

Organisations – angel investors, incubators, VC, accelerators

13. Discuss about Startup India and Digital India?

Startup India is a Government of India initiative launched in 2016 to promote entrepreneurship and innovation in the country.

Objectives

• Encourage new startups
• Support innovation and job creation
• Simplify regulations for startups

Digital India

Digital India is a Government of India program launched in 2015 to transform India into a digitally empowered society and knowledge economy.

Objectives

• Provide digital infrastructure
• Deliver government services online
• Improve digital literacy