Qualities and functions of an entrepreneur

Correct answer: A. Fairness and analytical thinking

The entrepreneur first gathers evidence instead of blaming people without knowing the facts, which demonstrates fairness. Studying customer behaviour and market data to identify the real reason for declining sales demonstrates analytical thinking. Option B mentions useful qualities but does not describe the evidence-based investigation, while C and D contradict the behaviour shown.

Correct answer: B. Delegation will remain incomplete

Delegation means assigning responsibility together with the authority needed to complete the work. If an employee is held responsible but cannot make necessary decisions, the delegation is incomplete and work may be delayed. Option A is not automatic, and C and D are unrelated outcomes rather than the direct managerial problem.

Correct answer: C. Learning-oriented perseverance

Learning-oriented perseverance means continuing after difficulty while using feedback to improve. The entrepreneur does not simply repeat the failed attempt; the next prototype is changed using customer evidence. That makes the behaviour more than patience and clearly different from avoiding risk or showing overconfidence.

Correct answer: D. Foresight and risk management

Recognising a possible raw-material shortage before it occurs shows foresight, because the entrepreneur is thinking ahead. Developing alternative suppliers reduces dependence on one source and prepares the business for disruption, which is risk management. The other options name qualities or functions that are not demonstrated by this planning activity.

Correct answer: A. Participative and accountable leadership

Listening to criticism and considering team views makes the process participative. Taking the final decision on the basis of facts and accepting its outcome shows accountability. This is not complete dependence because the entrepreneur decides, and it is not authoritarian stubbornness because team input is genuinely considered.

Correct answer: B. Quality control and cause analysis

Higher sales do not prove that service quality is satisfactory. A rising complaint rate is a warning that products, delivery, or service may have a problem. Quality control and cause analysis should therefore identify the source before more promotion or price changes are attempted. The other actions could worsen the situation or ignore its cause.

Correct answer: C. Employees may adopt unsuitable sales behaviour

If rewards and evaluation depend only on sales volume, employees may pressure customers, hide limitations, or ignore service quality to reach the target. Adding customer-satisfaction measures creates a more balanced standard. The other options are either impossible or opposite to the likely effect of a one-sided target.

Correct answer: D. Financial analysis and pricing

A selling price should be decided after considering production cost, operating expenses, expected demand, and a reasonable margin. If every sale creates a loss, the entrepreneur has not properly assessed unit economics or pricing. Training, conflict resolution, and branding may matter, but they do not directly explain a loss on each unit sold.

Correct answer: A. Objectivity

Objectivity allows the entrepreneur to judge the idea using evidence rather than personal attachment. Weak demand data should lead to testing, modification, postponement, or withdrawal after proper analysis. Perseverance can be useful only when guided by evidence; ego and ignoring risk would make the decision less reliable.

Correct answer: B. Organising and task allocation

Organising involves dividing work, matching tasks with people's abilities, assigning responsibility, and setting arrangements for completion. Clear deadlines add structure to the assignment. Although this may also motivate employees, the central function described is organising and task allocation, not market research or promotion.

Correct answer: C. Fairness and objectivity

A survey that excludes dissatisfied customers is biased and cannot represent the full customer experience. Fairness requires giving relevant groups a proper chance to be heard, while objectivity requires interpreting evidence without selecting only favourable responses. Courage, punctuality, and creativity do not address this sampling problem.

Correct answer: D. Lack of root-cause problem-solving

An apology may respond politely to one incident, but it does not prevent the same failure from happening again. Root-cause problem-solving investigates the process, identifies why the error occurs, and changes the system or training accordingly. The other options do not describe the failure to correct the repeated cause.

Correct answer: A. Goal setting and controlling

Breaking a large objective into measurable stages is goal setting and planning. Comparing actual weekly progress with the intended stages is controlling because it reveals gaps and allows corrective action. Marketing, recruitment, creativity, or risk-taking may occur elsewhere, but they do not explain this measurement cycle.

Correct answer: B. Open-mindedness

Open-mindedness means judging an idea by its evidence, usefulness, and feasibility rather than by the status of the person who suggested it. A junior employee may still provide a valuable innovation. The situation does not primarily concern self-discipline, risk tolerance, or time management.

Correct answer: C. Coordination

Production creates goods, but distribution makes them available to customers. These activities must be planned and linked so that increased output reaches the market on time. Failure to connect them shows weak coordination. Accounting, motivation, and self-assessment may be useful, but none directly describes the gap between production and distribution.

Correct answer: D. Ethical responsibility

Safety checks protect employees, customers, and other stakeholders from preventable harm. Stopping them merely to increase profit places short-term gain above responsible conduct and ethical duty. The behaviour may also show poor foresight, but the clearest missing quality is ethical responsibility because safety obligations are deliberately ignored.

Correct answer: A. Prioritisation

Prioritisation means ranking needs according to their importance and using scarce resources on the most necessary items first. An essential machine may support production, while decoration can wait. This is not necessarily risk avoidance or overconfidence, and creativity is not the central decision shown here.

Correct answer: B. Human resource development

Human resource development includes building employees' knowledge and skills so they can perform effectively. New technology may remain underused or cause errors if workers are not trained. Pricing, market segmentation, and customer classification may be separate activities, but they do not address the missing employee capability.

Correct answer: C. Adaptability

Adaptability means making sensible changes when evidence shows that change is needed. Changing everything after every failure without diagnosis is not thoughtful adaptation; it can become inconsistency and prevent learning. The quality is therefore being used without balance. Honesty, reliability, and punctuality do not describe this pattern of frequent strategy changes.

Correct answer: D. Communication and coordination

Clear communication ensures that employees understand the same objectives, responsibilities, and procedures. Coordination connects their separate efforts toward one result. Conflicting instructions create confusion, duplication, and delay, so communication and coordination are deficient. Procurement, research, and finance do not directly explain the contradictory directions.

Correct answer: A. Balanced evaluation

Balanced evaluation uses more than one performance indicator. Current sales show immediate demand, while repeat purchases provide information about satisfaction, loyalty, and lasting value. Checking both gives a fuller picture of performance. Self-confidence, stubbornness, and imitation do not explain the effort to examine several meaningful measures.

Correct answer: B. Accountable leadership

Accountable leadership combines participation with ownership of results. The entrepreneur invites employees to contribute, but does not shift responsibility when the final decision is made. This is more precise than humility alone. Risk avoidance and strict discipline do not describe the balance between employee involvement and personal responsibility.

Correct answer: C. Ethical respect for privacy

Using customer data only for the purpose that was communicated and approved respects privacy and informed trust. It shows ethical responsibility in handling information. Foresight, problem-solving, and risk-taking may be useful entrepreneurial qualities, but none directly explains the careful limitation on data use.

Correct answer: D. Lack of capacity planning

Capacity planning checks whether available machines, labour, materials, time, and facilities can meet a promised order. Accepting a large order without this check may cause delays, poor quality, or failure to deliver. Creativity, honesty, and participation do not identify the missing assessment of operational capability.

Correct answer: A. Emotional balance

Emotional balance means recognising feelings without allowing them to overpower careful judgement. By controlling emotional reactions and examining evidence, the entrepreneur can compare alternatives more rationally. Initiative and creativity may support action or ideas, while market segmentation is a marketing process; none specifically describes emotional self-control.