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Test: Entrepreneurial Planning- 2


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15 Questions MCQ Test Entrepreneurship Class 12 | Test: Entrepreneurial Planning- 2

Test: Entrepreneurial Planning- 2 for Commerce 2023 is part of Entrepreneurship Class 12 preparation. The Test: Entrepreneurial Planning- 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Entrepreneurial Planning- 2 MCQs are made for Commerce 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Entrepreneurial Planning- 2 below.
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Test: Entrepreneurial Planning- 2 - Question 1

Pankaj is running a Chemist shop under the name ‘Bansal Medicos’ in Ashok Vihar Market. He takes all the decisions about business himself and there is no interference from others. He also earns good profit as a direct reward for his risk bearing. The form of business organisation in which Pankaj is engaged is sole proprietorship. Mention whether the identified form is true or false.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 1

The business organisation Pankaj is running is sole proprietorship.
The benefits of Sole Proprietorship are:
1. Sole proprietorship can be started by just 1 person.
2. The capital contribution required in Sole Proprietorship is easy lesser.
3. Sole proprietorship has direct personal contact.
4. There is direct and high degree of control in sole proprietorship.
5. Quick decision making is there in this type of business.

Test: Entrepreneurial Planning- 2 - Question 2

Shillong is famous for its pristine beauty. Ariel Pvt. Ltd. wanted to build an eco-friendly amusement park which will not only be known for fun activities but will also educate the public about various sustainable development home projects. The company felt that it is their duty to educate the present generation about Do-it yourself projects. This will bring awareness about saving our environment for a better future. She put her idea before the venture capitalists by making an entertaining slide show and oral narration. She also presented the executive summary of her proposed venture and a few key graphs. The format of business plan used by Aru is A pitch deck with oral narrative.  Mention whether the identified format is true or false.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 2
  • Tourism Finance Corporation of India Ltd. (TFCI) is an Indian Financial Institution, set-up in 1989 upon the recommendations of the National Committee of Tourism under the aegis of Planning Commission.
  • TFCI has assisted a third of the total capacity of branded hotels in India till date.
  • TFCI provides all forms of financial assistance to enterprises for setting and developing travel and travel related activities, facilities and services. It also coordinates and formulates policies and strategies related to the financing of tourism projects.
Test: Entrepreneurial Planning- 2 - Question 3

Gopi, in order to promote local craftsmen of Gujarat, formed an organization where in the persons voluntarily associate themselves to promote common economic interest. The basic purpose of this organization was to help these craftsmen to find market for their products. It had a managing committee that was elected on the basis of ‘one member one vote’. The form of business organization set up by Gopi is co-operative organisation. Mention whether the identified form of organisation is true or false.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 3

Co-operative organization;
Features:

  • ‘Formed an organization where in the persons voluntarily associate…..’- voluntary association, anybody can become a member of a co-operative society
  • ‘managing committee that was elected in the basis of one member one vote’- democratic management, the management of the co-operative society is democratically elected.
  • ‘the purpose of this organization is to help these craftsmen to find market for their products’- service motive, the main objective of a co-operative society is to provide service to it’s members and not to earn profits.
Test: Entrepreneurial Planning- 2 - Question 4

Given below are the formats of a business plan with their meaning. Match them correctly.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 4

Correct Match:

Test: Entrepreneurial Planning- 2 - Question 5

Given below are the elements of operational plan with their meaning. Match them correctly.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 5

Test: Entrepreneurial Planning- 2 - Question 6

State Whether the Following Statements are True or False.
Q. A single person can constitute a company.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 6

A single person could not incorporate a Company previously. One Person Company (OPC) is a company incorporated by a single person. Before the enforcement of the Companies Act, 2013, a single person could not establish a company.

Test: Entrepreneurial Planning- 2 - Question 7

State Whether the Following Statements are True or False.
Q. The liability of the shareholders of a company is normally unlimited.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 7

Unlimited liability refers to the full legal responsibility that business owners and partners assume for all business debts. This liability is not capped, and obligations can be paid through the seizure and sale of owners' personal assets, which is different than the popular limited liability business structure.

Test: Entrepreneurial Planning- 2 - Question 8

State Whether the Following Statements are True or False.
Q. Sales tax is levied on the sale of a commodity.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 8

A sales tax levied on the manufacture, purchase, sale, or consumption of a specific type of commodity is known as an excise tax.  Whereas excises may be based either on quantities of the taxed product (specific excises) or on value, general sales taxes are inherently value-based taxes.

Test: Entrepreneurial Planning- 2 - Question 9

State Whether the Following Statements are True or False.
Q. Minors cannot form a partnership firm.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 9

Section 30 of the Indian Partnership Act, provides that though a minor cannot be a partner in a firm, but, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership by an agreement executed through his guardian with the other partners.

Test: Entrepreneurial Planning- 2 - Question 10

State Whether the Following Statements are True or False.
Q. Partnership is the outcome of a contract.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 10
  • A partnership agreement is a contract between partners in a partnership which sets out the terms and conditions of the relationship between the partners, including: Percentages of ownership and distribution of profits and losses.
  • A partnership agreement allows partners to control how to address complex matters within the arrangement while protecting each partner's overall interests.
Test: Entrepreneurial Planning- 2 - Question 11

State Whether the Following Statements are True or False.
Q. The marketing plan is a guideline regarding the marketing objectives, strategies and activities to be followed by any enterprise.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 11

The marketing plan describes how the company will use the marketing mix product, promotion, place, and price to achieve its marketing objectives effectively within the competitive market environment. The marketing plan also focuses the company's resources on reaching target customers and driving them to act.

Test: Entrepreneurial Planning- 2 - Question 12

State Whether the Following Statements are True or False.
Q. The four Cs of credit are: character, cash flow, collateral and community.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 12

The 4 Cs of Credit helps in making the evaluation of credit risk systematic. They provide a framework within which the information could be gathered, segregated and analyzed. It binds the information collected into 4 broad categories namely Character; Capacity; Capital and Conditions.

Test: Entrepreneurial Planning- 2 - Question 13

State Whether the Following Statements are True or False.
Q. The objective of the production plan is to plan the work in a manner that each step to be taken in the right place, right degree, right time and more efficiently.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 13
  • Production Plan: Production plan is the planning of industrial operations involves four considerations, namely, what work shall be done, how the work shall be done and lastly, when and by whom the work shall be done.
  • Objectives of Production Planning and Control (PPC): Minimize production time. Improve customer satisfaction. Coordinate with departments about production, to ensure things are on the same page. Ensure the right man is assigned the right work.
Test: Entrepreneurial Planning- 2 - Question 14

State Whether the Following Statements are True or False.
Q. Proforma investment decisions relates to how the enterprise funds are required in different assets so that the enterprise is able to earn the highest possible returns on investment.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 14
  • Pro forma, Latin for “as a matter of form” or “for the sake of form”, is a method of calculating financial results using certain projections or presumptions.
  • Pro forma financials may not be GAAP compliant but can be issued to the public to highlight certain items for potential investors.
  • They can also be used internally by management for aiding in business decisions.
  • It's illegal for publicly traded companies to mislead investors with pro forma financial results that do not use the most conservative possible estimates of revenue and expense.
     
Test: Entrepreneurial Planning- 2 - Question 15

State Whether the Following Statements are True or False.
Q. A business plan is valuable only to the enterprise.

Detailed Solution for Test: Entrepreneurial Planning- 2 - Question 15

A business plan is a very important and strategic tool for entrepreneurs. A good business plan not only helps entrepreneurs focus on the specific steps necessary for them to make business ideas succeed, but it also helps them to achieve short-term and long-term objectives.

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