SAMPLE QUESTION PAPER (2021-22)
ENTREPRENEURSHIP
TERM II
CLASS 12
Time: 2 Hrs Max. Marks: 35
GENERAL INSTRUCTIONS
1. The paper is divided into 3 Sections
2. Section-wise overall choice is given to the students.
3. Section A (2 markers) has 6 questions. Attempt any 4 out of 6
4. Section B (3 markers) has 5 questions. Attempt any 4 out of 5
5. Section C (5 markers) has 4 questions. Attempt any 3 out of 4
SECTION – A
1. ‘The Fancy Store’ a readymade garments retail shop sold 8,000 shirts at ₹400 per shirt during the year ended 31st March, 2014. Cost of placing an order and receiving goods is ₹2,000 per order. Inventory holding cost is ₹500 per year. Calculate the ‘Economic Ordering Quantity’ for ‘The Fancy Store’
2. What is the most popular method of floatation of new issues?
3. Coal Ltd. is a public company and running its business on the terms defined by government. Stones Ltd. is a private firm owned by Sunny Stone and his brother, Rocky Stone. Stone brothers are planning to expand the business. For that, Sunny wants to merge the company with another private company in order to increase production and earn more profits. But, Rocky wants to acquire a public limited company in order to expand their business to the government market as well. Identify and give the meaning of this type of enterprise growth opportunity.
4. What are the various types of brand names from the entrepreneur’s perspective? Give any two.
5. Explain the types of acquisition.
6. Enlist any two typical sales promotion activities.
SECTION – B
7.
(i) Identify the type of business whose operating cycle is represented above?
(ii) Analyse the working capital requirement for the type of business identified in (i)
8. Aditi started a beauty parlour business. She spends ₹30,00,000 to open the parlour of which she invested ₹14,00,000 of her own money and borrowed a loan for ₹16,00,000. Interest rate per annum is 14%. Sales revenue per month is ₹1,60,000. Cost of goods sold is ₹60,000 per month. Fixed expenses for that month are ₹60,000 (salary ₹40,000, rent and utility ₹20,000), depreciation ₹30,000 and tax @15%. Calculate ROI and ROE.
9. Explain in detail any two pricing strategies.
10. Elaborate on any three types of franchising.
11. Identify and explain the type of marketing strategies used in the given situations:
(i) Vipul found a worm crawling out of newly opened tetra pack of juice manufactured by a reputed company, Juices Ltd. He went back to the shopkeeper from whom the pack was purchased who directed him to call up the customer care centre. When all his efforts fell free, he went to a consumer activist group to seek advice. The group decided to help Vipul and take measures to impose restrictions on the sales of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company. Juices Ltd. lost its image in the market. The CEO gave the responsibility of bringing back the lost image of the company to the Manager.
(ii) Ritu, Vimla and Swapna are three women entrepreneurs who are engaged in dealing with handicraft goods under the brand name ‘craftworks’ through a chain of retail outlets at five different places in Mumbai. They outsource all their products from tribal and rural women in the state of Maharashtra. Ritu is of the opinion that in order to increase the sale of their products. They should advertise about it on television. But, Swapna is arguing that advertisement expenses will add to cost of operation. Whereas Vimla is insisting that they should set up an online portal to market their products across the globe.
(iii) Sohan has decided to set up a small factory to manufacture hand wash and toilet soaps in a rural area in Haryana. In order to promote the product initially, he plans to distribute small sachets of the hand wash as free samples, besides deploying a team of salesmen to sell the product door to door in the different parts of the city. Moreover, he has decided to conduct a hygiene camp in rural areas wherein he will distribute a kit comprising of hand wash and soap and also plans to organize street plays to highlight the importance of hygiene and sanitation in our daily lives.
SECTION – C
12. What is capital market? Explain how capital markets are the most important source of raising finance for an entrepreneur.
13. Nishtha, a professionally qualified entrepreneur decided to start ‘kids furniture’ a website of designer furniture. It was relatively an untried area involving high risk. She lacked the necessary funds and experience to give shape to her idea. She knew that if she failed to get investment from the public her idea would lie down before it is tried. So, she made a detailed business plan and presented her idea to ‘Fifa Finance Ltd’ a company run by a group of professional investors. They were impressed by her business plan and decided to fund her start up in exchange for an equity stake in the business. Identify the source of finance used by Nishtha. Also explain how this source of finance is different from raising debt.
14. Read the following article from a Business Newspaper and answer the questions:
“Kamal Ltd, are manufacturers of textiles, having their plant in Surat, a city of Gujarat. Vastra Ltd. are the manufacturers of readymade garments and sell their products throughout the country. They also export their products to America and European countries. Vastra Ltd. source their textile from Kamal Ltd. The management of the two companies decided to merge to have economies of large scale production. The logic behind the merger is to increase synergies created by both the firms that would be more efficient operating as one.”
(i) Quoting the lines from the passage identify and explain the types of merger entered into by Kamal Ltd and Vastra Ltd.
(ii) Also explain any two types of merger other than the one identified in (i) above
15. What is marketing mix? How does market mix play an important role in enhancing the sale?