Name of the Board : CBSE Academic
Class : XII STD
Document Type : Sample Question Paper
Subject : Entrepreneurship
Year : 2017-18
Website : http://cbseacademic.nic.in/SQP_CLASSXII_2017_18_final.html
Download Sample Question Paper : https://www.pdfquestion.in/uploads/22343-Entrepreneurship-SQP.pdf
CBSE Entrepreneurship Sample Question Paper
1. Differentiate between capital budget and cash budget.
Related : CBSE Academic XII STD Entrepreneurship Sample Question Paper 2016 – 17 : www.pdfquestion.in/10066.html
Ans.
Capital budget is used to determine whether an organisation’s long term investment plans are worth pursuing, whereas cash budget determines when income will be sufficient to cover expenses and when the company will need to seek outside financing.
2. Gupta ltd., are the manufacturers of sports motorcycles. They want to manufacture low cost scooters using latest technology. For financing the project they have estimated a capital requirement of Rs. 50 lakhs.
The company wants to finance the project by borrowing from a financial institution. Name any two financial institutions they can approach for the same.
Ans.
Industrial Development Bank of India; Small Industries Development Bank of India; Industrial Finance Corporation of India; Industrial Credit and Investment Corporation of India (Any two)
3. Naveen owns a 10 room building near Indira Gandhi International Airport. He wants to start a guest house there because he knows that many visitors require low cost accommodation near the airport. State two things that he has to ensure before opting for this opportunity.
Ans.
** To ensure that there is a good market for the service
** The rate of return on the investment is attractive
4. Give the meaning of a ‘Joint Hindu Family Business’.
Ans.
It is a business which is owned, managed and controlled by the male members of a Joint Hindu Family.
5. What is a trade mark?
Ans.
It is a recognizable sign, design or expression which distinguished products or services of a particular trade from the similar products or services of other traders.
6. List any four advantages of Employees Stock Option Plan.
Ans.
Higher Efficiency; Low labour turnover; Better industrial locations; Low flotation cost; Wider higher generation of funds (Any four)
7. Ritu has completed her B.tech in textile designing. She wants to start a ready made garments manufacturing unit. She wants to manufacture trendy garments for children below the age of one year. She approached a popular trend spotter to help her with the same.
The trend spotter demanded Rs. 2,00,000 from Ritu to help her. Looking at the high fee demanded, she decided to do the trendspotting by herself. She decided to identify the trend by talking to the parents of the newly born. Explain the method that Ritu adopted to spot the trend.
Ans.
Talk Trends : talking to people is equally important trend spotting activity which helps the entrepreneur to get inputs on the needs of the customer. This can be done both online and offline.
8. The first step in the creative process is ‘Idea germination’. Explain the next step that follows.
Ans.
Preparation : on the basis of the idea generated the entrepreneur starts looking for the answers to implement the idea. If the idea is to launch a new product or service then market research is conducted.
9. Mohan and Radha want to start a shop to sell Rajasthani Sweets. They did not know how to enter into the agreement. Therefore, they approached a Chartered Accountant who advised them to prepare a document which may stipulate the terms and consolidation of the agreement.
Name the document about which the chartered accountant advised Mohan and Radha. Also state any four important items they should include in the agreement besides the name, nature and place of business.
Ans.
Partnership Deed;
Contents of the deed :
1. Amount of capital to be contributed by each partner.
2. Profit sharing ratio between the partners.
3. Loans and advances from the partners and the rate of interest thereon.
4. Drawings allowed to the partners and the rate of interest thereon.
5. Amount of salary and commission, if any, payable to the partners.
6. Duties, powers and obligations of partners.
7. Maintenance of accounts and arrangement for their audit.
8. Mode of valuation of goodwill in the event of admission, retirement and death of a partner.
9. Settlement of accounts in the case of dissolution of the firm.
10. Arbitration of case of disputes among the partners.
11. Arrangements in case a partner becomes insolvent. (Any four)
10. Quick Rasoi is a fast food chain selling Indian items like Kathi Roll, Samosa, Idli, Dhoklas Etc., Now, they want to sell Kulfi in their outlets.
Kulfi has been an item in their menu earlier also but was withdrawn because of higher price as compared to the price of established brands. Therefore, this time they decided to initially price the Kulfi at cost. It was done with the objective of increasing market share.
Management of Quick Rasoi is of view that once their Kulfi is established in the market they will increase the price to a level that will help them in earning reasonable profit on their product. Identify and explain the pricing strategies adopted by Quick Rasoi earlier and at present.
Ans.
Price Skimming- It is the method where the initial price is set high to attract brand conscious customers and to recover the research and development cost quickly.
Penetrating price- It is a method where the prices are kept low or at par with the competitors in order to gain the market share. Once it is achieved the prices are gradually increased to match up with the market.
11. In 2015 Jaya Ltd, started a toy manufacturing unit using robot technology. The toys manufactured by the company became popular amongst children. But since the cost of the toys was high, the company could not earn good profit.
The business is of high risk along with higher expected returns. The company wants to increase production so that they can reduce cost per unit.
For this the company wants additional investment of Rs. 50 lakhs. The company approached Ashok who has just retired from Indian Space Research Organisation and who is an influential person.
Ashok agreed to give the loan to the company provided that his loan is converted into equity shares after two years. The company agreed to Ashok’s proposal.
(a) What type of investor is Ashok?
(b) State any two features of the same.
Ans.
(a) Angel Investor
(b) Features (Any two)
1. Most angel investors are current or retired executives, business owners or high net worth individuals who have the knowledge, expertise, and funds that help start-ups match up to industry standards.
2. As angel investors bear extremely high risk and are usually subject to dilution from future investment rounds. They expect a very high return on investment.
3. Apart from investing funds, most angels provide proactive advice, guidance, industry connections and mentoring start-ups in its early days.
4. Their objective is to create great companies by providing value creation, and simultaneously helping investors realize a high return on investments.
5. They have a sharp inclination to keep abreast of current developments in a particular business arena, mentoring another generation of entrepreneurs by making use of their experience