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. Pink & Blue Store sells 1000 insulated water bottles annually. Demand for the product is uniform. Purchase cost per bottle is ₹50. Holding cost per annum is 10% of purchase cost. Ordering cost is ₹100 per order. Calculate the Economic Ordering Quantity for bottles.
2. Identify and explain the method of raising additional finance from existing shareholders by offering securities to them on pro-rata basis.
3. ‘Wimber Motors Ltd.’ was a car dealer. It took over a car manufacturing plant ‘Speed Cart & Co.. and started a new business in the name of ‘Unique Cart Ltd.’ to synergize and capture a major share of the market and to maximize their profits. Like their competitors, they decided to sell their cars through company appointed dealers (retailers) in various parts of the country. This type of distribution network will enable the company to retain control over the distribution process. Identify and give the meaning of this type of enterprise growth opportunity.
4. Evaluate the pricing strategy which permits different rates to be extended to different customers for the same goods or services.
5. What is product franchise business opportunity? How is it different from manufacturing franchise opportunity?
6. Enlist any four objectives of advertising.
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. From the following information, calculate ‘Return on Equity’.
Capital ₹6,00,000
10% Loan ₹2,00,000
Net profit before interest ₹1,40,000, Also, state what is this return on rupees per lakh of equity.
9. What is the purpose of logo?
10. What do you think are the reasons for mergers and acquisitions? Explain any three.
11. Identify and explain the type of marketing strategies used in the given situations:
(i) “Pizza” are the manufacturer of vegetarian frozen dessert food products made with coconut milk, agave syrup and other certified ingredients. The founders of the company originally developed this treat to meet their own needs but found that their friends and families around were also keen to use the products. The company started using all marketing activities to grow and expand. The company began sponsoring booths at festivals, drawing attention to its newly created vegetarian products. It also disseminated relevant information to media about its products and the people who helped in building the company’s reputation.
(ii) Bhoomi Hotel in Rajasthan was facing a problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel was very worried. The MD called upon the marketing Manager for his advice. He suggested that the hotel should announce an offer of ‘4 days and 3 nights’ hotel stay package’ with free breakfast and one-day tour to the attractions of famous places in Rajasthan. The MD liked the suggestion very much.
(iii) Rohan was a pen manufacturer. He used to make ball point pens in a small factory in the basement of his house. Daily he would go to the market place and distribute pens to the retailers. Some of the pens were sold by him of his own by meeting persons on road. He had not kept any name for his pens. They were just like blue, black and red pens. One of his friends suggested him to keep a good name of his pens. He started selling pens with the name of Rolto Pens. Gradually his business started to pick up even more and he earned good revenue.
SECTION – C
12. “An entrepreneur can raise the required capital in the primary market.” Explain the various methods of raising the funds in the primary market by an entrepreneur.
13. Bhushan and Vinay were pursuing Electrical Engineering from a prestigious engineering college. During their third year they developed a solar LED bulb which can be used indoors. The bulb had a small panel which had to be charged at a stretch for 10 hours in the sun and it would last for 200 hours of usage. The idea was risky as there was a possibility that the market night not accept such a product, but if they do so, then there would be revolution in the power industry as it would lead to saving of power in every household. The prototype was made but to manufacture and distribute the same, they required around ₹5 crores. Both Bhushan and Vinay approached some affluent individuals who were ready to invest in their business in exchange for a convertible debt. Identify and explain the type of investors and state the features of the same.
14. Read the following article from a Business Newspaper and answer the questions:
“The largest Hamburger Hamber” in India merged with well-known Cold drink manufacturer “Soda Pop and renamed the brand “Ham-Pop” to impart a different identity. This will allow the companies to group together their products and get access to a bigger set of consumers.”
(i) Quoting the lines from the passage identify and explain the types of merger.
(ii) Also explain why the growth of business is important through mergers and acquisitions.
15. What is cost plus pricing method and enlist its advantages and disadvantages?