Qualities and functions of an entrepreneur

Correct answer: A. Strategic prudence

Checking stable demand and capacity before expansion shows strategic prudence. Consider both sales and sustainability.

Correct answer: B. Empowerment with accountability

The direct answer is B: empowerment with accountability. Empowerment means giving a worker suitable freedom to decide and act. Accountability means the worker must achieve agreed results and explain progress. Here, freedom is not unlimited or careless: the entrepreneur has stated the expected outcomes and fixed a review date. Therefore the employee can use initiative, while the entrepreneur can check responsibility and progress. Option A, complete centralisation, is wrong because decisions remain with one central authority and the employee is not given real freedom. Option B is correct because it combines decision freedom, clear results, and review. Option C, avoiding decisions, is wrong because a definite management arrangement has been made. Option D, informal control, is less correct because the example uses explicit expectations and a scheduled review, not merely casual or hidden supervision. Memory cue: freedom plus targets plus follow-up means empowerment with accountability.

Correct answer: C. Cause-and-effect analysis

Examining the real cause of sales growth is cause-and-effect analysis. Distinguish temporary demand from lasting demand.

Correct answer: D. Principle-based integrity

Maintaining honest principles despite profit pressure shows integrity. Both methods and outcomes should be ethical.

Correct answer: A. Holistic problem analysis

Examining several possible causes of poor sales shows holistic analysis. Do not assume a single cause.

Correct answer: B. Intellectual humility and transparency

Admitting a wrong assumption shows intellectual humility and sharing reasons shows transparency. Identify both qualities.

Correct answer: C. Pattern recognition

Finding similarities in repeated events is pattern recognition. Use it to identify systemic causes.

Correct answer: D. Continuous-improvement mindset

Learning and improving even after success shows a continuous-improvement mindset. Do not link review only with failure.

Correct answer: A. Total-cost approach

Considering delay and defect costs along with purchase price is the total-cost approach. Do not focus only on low price.

Correct answer: B. Measure customer satisfaction and ethical conduct along with sales

A balanced incentive system values both results and conduct. Understand how measured behaviour affects actions.

Correct answer: C. Managerial-capacity feasibility

Expansion requires sufficient managerial time and capacity along with money. Treat time as a resource.

Correct answer: D. Business-model and financial planning

A useful product also needs a financially sustainable model. Consider both customer value and profitability.

Correct answer: A. Crisis-based prioritisation

Selecting tasks by impact and urgency during a crisis is strategic prioritisation. Distinguish essential from non-essential work.

Correct answer: B. Supportive leadership and accountability

The direct answer is option B: this is supportive leadership together with accountability. Leadership means guiding people toward a goal. Supportive leadership allows an employee to understand the mistake, learn, receive help and try again. Accountability means that the person and the organisation still remain responsible for meeting agreed standards and correcting poor work. Step by step, the entrepreneur does not punish immediately or abandon the employee; that shows support. At the same time, quality standards remain unchanged, so the result must still meet expectations; that shows accountability. Option A is wrong because total strictness would not provide a genuine chance to improve. Option B is correct because it contains both support and responsibility. Option C is wrong because empathy alone might overlook standards and follow-up. Option D is wrong because passive leadership would avoid guidance and active quality control. Memory cue: kindness in the process, responsibility for the result.

Correct answer: C. Openness to diverse viewpoints

Listening to opposing views reduces group bias and improves decision quality. Link openness with critical thinking.

Correct answer: D. Key-person dependency risk

The absence of one person may stop the whole operation. Remember task distribution and succession preparation.

Correct answer: A. Value-centred judgement

Balancing customer focus with feasibility shows value-centred judgement. Do not treat every request as an opportunity.

Correct answer: B. Planning and controlling

Indicators clarify goals in planning and measure progress in controlling. Understand the link between both functions.

Correct answer: C. Adaptability with prudence

Readiness to change shows adaptability while verification shows prudence. Distinguish flexibility from haste.

Correct answer: D. Review employee welfare and hidden costs along with results

The direct answer is D: a balanced review examines employee welfare and hidden costs along with results. A target can be reached in an unhealthy way, for example through excessive hours, unsafe conditions, stress, illness, or staff turnover. The reasoning is: first check the target result; then check how it was achieved; examine health, safety, morale, long-term sustainability, and costs that may not appear in immediate profit; finally judge overall performance. A is incomplete because target achievement alone hides harm. B is wrong because complaints may reveal serious risks. C is wrong because higher targets could worsen the damage without solving its cause. D is correct because responsible entrepreneurship considers people and long-term effects. Memory cue: good performance is results plus responsible methods.

Correct answer: A. Systems thinking

Connecting individual incidents with the wider system shows systems thinking. Identify process-level causes.

Correct answer: B. Change management

Employee readiness and training are parts of change management during technology adoption. Consider both technology and people.

Correct answer: C. Unit-economics analysis

Direct answer: Option C, unit-economics analysis. Unit economics studies the income and cost connected with one unit of a product or service, such as one customer, one order or one subscription. Step by step: sales may rise; that tells us total revenue or volume is increasing. The entrepreneur then asks how much is earned from each customer and how much it costs to serve that customer. Comparing those per-customer figures shows whether growth is financially healthy, so it is unit-economics analysis. Option A is less correct because sales analysis mainly measures sales volume, revenue or trends and does not necessarily examine cost per customer. Option B is different: customer-satisfaction analysis studies happiness, complaints, loyalty or feedback, not primarily money per customer. Option D is wrong because market-size analysis estimates how many possible customers or how large a market is. Option C fits the exact clue, “per customer” cost. Memory cue: one customer or one sale plus revenue and cost means unit economics.

Correct answer: D. Outcome-based delegation

Delegation should include expected outcomes and review criteria along with responsibility. Assigning a task alone is insufficient.

Correct answer: A. Strategic originality

An offering based on a unique capability creates differentiation. Distinguish analysis from copying.