1

ans.1.

The two conditions have to be satisfied for making the cash flows to be relevant.

1. To be incurred in future

2. The cost should be different under different alternatives, means the cost should be avoidable or controllable due to the alternative

Under the given situation, the cost is non cancellable, which means unavoidable. Means, the cost is non controllable or un avoidable.

ans2.

ENTREPRENEURSHIP: Entrepreneurship is the process that involves all actions an entrepreneur undertakes to establish an entreprise to give reality to his business idea. Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk taking appropriate to the opportunity and through the communicative and management skills to mobilize human, financial and material resources necessary to bring a project to execution.

IMPORTANCE OF ENTREPRENEURSHIP:

1. Increase standard of living: It It helps to improve standard of living by increasing the income. Standard of living means increase in the consumption of various goods and servicesby a household.

2. Innovation: Innovation means doing something new. It is the combination of innovation that provide new technology, new products, new marketing method etc.

3. Creation of employment: Entrepreneurship provide entry level jobs so necessary for trainning or gain experience for unskilled workers.

4. Impact on community development: A community is better off its employment base is diversified among many enterpreneurial firms.

5. Consumer welfare: Due to innovation ideas, consumer can enjoy new and better types of goods and services.

6. Revenue to the government: The indirect revenue comes in the form of taxes.

7. Provides satisfaction: It doesnot only reward an entrepreneurship at financial level but also an personal level. it provide satisfaction to the customers.

ans3.

An Entrepreneur is a person who creates new businesses and provides value to its customers in a new way which hasn't been experienced by them before. A person, in order to sustain himself/herself, has to serve someone. It can be their boss, it can be a customer or it can be someone providing sustenance to them. The important point is that we are all interdependent on each other one way or another in order to survive. A person who works for someone else in an organization is similarly serving someone like a person starting his/her own firm to create value for others. The main difference between them arises in terms of satisfaction. If you are an entrepreneur, you will try to create value in something you are passionate about where as a salaried employee will do what his/her boss wishes them to do. Hence, satisfaction is an important criterion for people starting up on their own.

In terms of the monetary value of starting up also, we can see that the most lucrative careers out there are in fields like Investment Banking and Management Consulting. But, what we fail to see is that there also you have sufficient risk of losing your job because of many reasons. Hence, we often interpret entrepreneurship as a risky career but if we see the rewards associated with the risk, it balances the scale. And, another important thing about entrepreneurship is that at the end of it, even if you fail, you learn so much from the experience that people are willing to take you in their organization valuing your failure and experience

ans.4

The basic differenve comes in mindsets. I will explain both in the following paragaphs

Entrepreneurial firms are those firms which takes risks in order to earn higher returns. In simple terms these firms are innovative firms. They take risks so as to outperform. They always look for higer growth in their business resulting in aggressive stategies in different verticals like operations, financials, marketings etc to have an edge over the competition. These firms are risk seekers.

Conservative firms are risk averse firms, non innovative firms and reactive unlike entrepreneurial firms who are proactive. Conservative firms will find it very difficult to thrive in competition if it does not change its strategy. Reluctant to change will kill the firm in such a dynamic world where competition kills.

ans5

Digital technologies play an important role in the formulation of entrepreneurs-

A. Digital technology will be helping them in order to know about innovative technologies which are currently emerging in the globe.

B. digital technology will also be helping these entrepreneurs in order to conduct various kinds of online meetings with various partners across the globe and they can arrive at a global entrepreneurship program.

C. Digital technology will be helping the entrepreneur by making them quickly arrange their capital through various online sources also.

D.digital technologies will also help them in order to have access to a large group of market because of easy advertisements over digital media.

E. Promotion and marketing in social networkingerror is not that difficult as he can even use his own network of people to promote himself as an entrepreneur.

F. He can use various kinds of online programs in order to have up better knowledge about his skills and he can even sharpen the skills in order to maximize his scope of success.

ans6

Entrepreneurs are Gamblers : Myth

Trust is entrepreneurs are jusy like normal people , they are moderate risk takers. The idea that entrepreneur are gambles is because of the fact that entrepreneur do not have stable job and hence face more uncertain set of probability. Normally Entrepreneurs have set their goals which is sometimes equated with risk taking behaviours

Entrepreneurs are Motivated Primarily by Money : Myth

No doubt that money is one of the thing entrepreneurs look for, but it is not only thing. Entreprenuers start business with a view to change the world or bring new innovations or to have fun and financial reward is part of such process. It is rightly said if Entrepreneurs are Motivated Primarily by Money then they will be scare to lose it and thus will not enable them to make any new things / inventions. Thus it is myth that entrepreneurs are Motivated Primarily by Money