Assertion Reason Questions for CBSE Class 11 Entrepreneurship Chapter 5 Understanding the Market
Here we are providing assertion reason questions for cbse class 11 entrepreneurship. All chapters are covered.
Understanding the Market Assertion Reason Question
In the following questions a statement of assertion followed by a statement of reason is given. Choose the correct answer out of the following choices.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Q1. Assertion (A): If the materials, labour, and transportation for each bottle of 500 ml of Pepsi add up to Rs. 15, a 33.33% mark-up on materials, labour and transportation each makes the total price might be marked as Rs. 20.
Reason (R): In the variable cost-plus pricing method price is calculated by adding a mark-up to every per-unit costs of producing each additional good.
Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Explanation:
The expectation is that the mark-up will contribute to meeting all or a part of the fixed costs and yield some level of profit for every variable included in the total cost.
Q2. Assertion (A): A building contractor would usually purchase materials such as cement, plywood, nails, sinks, pipes, bathroom fixtures, paint, glass, wallpaper, and so on from a wholesale supplier.
Reason (R): They sell goods primarily to consumers or households.
Ans. (c) Assertion (A) is true but Reason (R) is false.
Explanation:
Wholesalers are “middlemen” who supply goods to industrial or business customers which typically operate from a warehouse or office space that is not necessarily designed to attract walk-in customers like retailers. Reason is applicable for retailers not wholesalers in case the goods are sold primarily to consumers or households.
Chapter List
- Entrepreneurship : Concept and Functions
- An Entrepreneur
- Entrepreneurial Journey
- Entrepreneurship as Innovation and Problem Solving
- Understanding the Market
- Business Finance and Arithmetic
- Resource Mobilisation
Entrepreneurship CBSE Class 11
The syllabus is divided into seven units: (i) Entrepreneurship: Concept and Functions (ii) An Entrepreneur (iii) Entrepreneurial Journey (iv) Entrepreneurship as Innovation and Problem Solving (v) Understanding the Market (vi) Business Finance and Arithmetic (vii) Resource Mobilization.
Unit 1: Entrepreneurship: Concept and Functions
Competencies: Vision, Decision making, Logical, Critical and Analytical Thinking, Managing Skills
- Entrepreneurship – Concept, Functions and Need
- Why Entrepreneurship for You
- Myths about Entrepreneurship
- Advantage and Limitations of Entrepreneurship
- Process of Entrepreneurship
- Entrepreneurship – The Indian Scenario
Unit 2: An Entrepreneur
Competencies: Need Achievement, Motivation, Ethics, opportunity seeking, Passion, Independence
- Why be an Entrepreneur
- Types of Entrepreneurs
- Competencies and Characteristics
- Entrepreneurial Values, Attitudes and Motivation
- Intrapreneur: Meaning and Importance
Unit 3: Entrepreneurship Journey
Competencies: Scanning the environment; Information seeking; creativity; Innovativeness; divergent thinking; Perseverance
- Generation of Ideas
- Feasibility Study and opportunity assessment
- Business Plan: meaning, purpose and elements
- Execution of Business Plan
Unit 4: Entrepreneurship as Innovation and Problem Solving
Competencies: Risk taking; Determination; Initiative; problem solving ability; Adaptability to changing technologies
- Entrepreneurs as problem solvers
- Innovations and Entrepreneurial Ventures – Global and Indian
- Role of Technology – E-commerce and Social Media
- Social Entrepreneurship – Concept
Unit 5: Understanding the Market
Competencies: Task oriented, Opportunity seeking, resourcefulness, organizational skills, Analytical and logical reasoning
- Market: Concept, Types
- Micro and Macro Market Environment
- Market Research – Concept, Importance and Process
- Marketing Mix
Unit 6: Business Finance and Arithmetic
Competencies: Arithmetic skills, critical analysis, decision making, self-confidence, problem solving
- Unit of Sale, Unit Price and Unit Cost – for single product or service
- Types of Costs – Start up, Variable and Fixed
- Break Even Analysis – for single product or service
Unit 7: Resource Mobilization
Competencies: Resourcefulness; Collaboration; Managing Risk; Organizational Skills; Informed Decision Making
- Types of Resources – Physical, Human, Financial and Intangible.
- Selection and utilization of human resources and professionals like Accountants, Lawyers, Auditors, Board Members, etc.