Indian Institute of Technology Kanpur (IIT-K) 2006 JT English University - exam paper

limits of profit maximization. It is important to note that entrepreneurial decision making is distinct from
routine managerial / administrative decision making by corporate executives. However, this definition does
include innovative venture decisions by executives and others in an already existing organization as legitimate
entrepreneurial function. The entrepreneurial function consists of 3 main elements: recognition of
opportunities, judgemental decision and coordination of resources. In terms of organization, the entrepreneur
will be involved in risk bearing, autonomous decision making and residual claims.

Every person is potentially an entrepreneur. However, the extent of its manifestation in true entrepreneurial
activities, business or otherwise, is a matter of political, social, economic, cultural and ideological influences.
Put differently, every human being has an innate ability to become an entrepreneur even though this ability
is not always translated into action because of a variety of limiting factors. This observation allows us to
propose that there are more than five billion entrepreneurs in this world, even though this conjecture may not
have been fully manifested in the practical world of business.

If there are more than five billion entrepreneurs in this world, how is it that there is such a dearth of entrepreneurs
in the world of business? This is an important ques. in view of the fact that business communities,
academia and policy makers in the public realm have begun to talk about possibilities for fostering
entrepreneurial growth in the global economy.


1. As per the passage, an entrepreneur is 1 who:
a. take the commercial venture decisions. b. exploits opportunities for personal gain.
c. invites participation in decision–making d. focuses on maximizing cash profits.
2. Which of the subsequent statements is NOT correct, according to the passage?
a. There are more than four billion potential entrepreneurs in this world.
b. Not everybody can become an entrepreneur.
c. Entrepreneurial decision–making is various from managerial decision-making.
d. Executives in organizations can be either managers or entrepreneurs, but not both.
3. The passage mentions the subsequent functions of an entrepreneur:
a. Risk-taking, decision-making, encouraging creativity.
b. Coordinating resources, recognizing opportunities and leading from the front.
c. Independent decision-making, exploiting opportunities and maximizing profits.

Earning:   Approval pending.