Class 12 Enterpreneurship Official Sample Question Paper (2020-21) | Entrepreneurship Class 12 - Commerce PDF Download

 Page 1


  
  Page 1 
 
SAMPLE PAPER  
ENTREPRENEURSHIP (066) 
CLASS XII 
  Time 3 Hrs                                                                                                                        Max Marks: 70  
 
General instructions: 
? There is no overall choice, though internal choice is given. 
? Read the question carefully before attempting. 
 
Q.1 Sudha started her small-scale business of making Pickles along with few of her 
neighbors using their free time at home. They named their venture ‘Home Sweet 
Home’. They were able to supply the entire district. One of the members 
suggested that they should expand and start selling to other states. When she 
discussed the same to her husband, he suggested that they have to properly look 
into the environment analysing the competitors. He suggested Sudha to   
 
A. formulate policies 
B. Tap useful resources 
C. Environment scanning 
D. Image building 
1 mark 
Q.2 Anant and Anandi together took over their family business of furniture. They 
understood that the present competitors were using online means to sell their 
products. They decided on a new idea of providing furniture on a rental basis to 
offices and households and to also start making furniture using the traditional 
method which caught the attention of the new generation. They opened stores in 
various cities and started selling through online mode also. They both are using 
the service-related idea field.  
Mention whether the idea field identified is true or false.   
1 mark 
Q.3 Vikrant was always interested in technology driven products. After finishing his 
engineering degree, he started working on a new walking stick which will help 
blind people. The stick will be Bluetooth and wi-fi enabled which will be 
connected through an app on the phone which will guide the blind persons about 
the objects in front of their walking path. He has started testing the walking stick 
and found that the stakeholders were satisfied and it had a great value to the 
customers. Vikrant is in ………... stage of innovation process.    
1 mark 
Q.4 Hemant approached his father seeking Rs.5,00,000 for his new venture. He had 
planned to start a computer assembling unit. Though his father was in a position 
to give him the money he still insisted that he should take a loan from the bank 
which will make him more responsible. When Hemant approached the bankers, 
they asked for a business plan. Hemant was not sure as to who can help him in 
preparation of the business plan. Who among the following can prepare the 
business plan? 
 
1 mark 
Page 2


  
  Page 1 
 
SAMPLE PAPER  
ENTREPRENEURSHIP (066) 
CLASS XII 
  Time 3 Hrs                                                                                                                        Max Marks: 70  
 
General instructions: 
? There is no overall choice, though internal choice is given. 
? Read the question carefully before attempting. 
 
Q.1 Sudha started her small-scale business of making Pickles along with few of her 
neighbors using their free time at home. They named their venture ‘Home Sweet 
Home’. They were able to supply the entire district. One of the members 
suggested that they should expand and start selling to other states. When she 
discussed the same to her husband, he suggested that they have to properly look 
into the environment analysing the competitors. He suggested Sudha to   
 
A. formulate policies 
B. Tap useful resources 
C. Environment scanning 
D. Image building 
1 mark 
Q.2 Anant and Anandi together took over their family business of furniture. They 
understood that the present competitors were using online means to sell their 
products. They decided on a new idea of providing furniture on a rental basis to 
offices and households and to also start making furniture using the traditional 
method which caught the attention of the new generation. They opened stores in 
various cities and started selling through online mode also. They both are using 
the service-related idea field.  
Mention whether the idea field identified is true or false.   
1 mark 
Q.3 Vikrant was always interested in technology driven products. After finishing his 
engineering degree, he started working on a new walking stick which will help 
blind people. The stick will be Bluetooth and wi-fi enabled which will be 
connected through an app on the phone which will guide the blind persons about 
the objects in front of their walking path. He has started testing the walking stick 
and found that the stakeholders were satisfied and it had a great value to the 
customers. Vikrant is in ………... stage of innovation process.    
1 mark 
Q.4 Hemant approached his father seeking Rs.5,00,000 for his new venture. He had 
planned to start a computer assembling unit. Though his father was in a position 
to give him the money he still insisted that he should take a loan from the bank 
which will make him more responsible. When Hemant approached the bankers, 
they asked for a business plan. Hemant was not sure as to who can help him in 
preparation of the business plan. Who among the following can prepare the 
business plan? 
 
1 mark 
  
  Page 2 
 
A. Lawyers 
B. Accountants 
C. Marketing consultants 
D. All of the above  
Q.5 Varun along with his friends had a brilliant idea to manufacture an air 
conditioner which will also act as an air purifier. The idea was new and the 
market did not have such a successful product. For starting the unit, they were in 
need of huge funds, so they decided to approach Shankar, a successful 
businessman and who is also a venture capitalist. However, Shankar said that he 
was very busy and if they could pitch their idea within a span of 3 minutes, he 
was ready to hear it. Which format of Business plan will Varun and his friends 
would have to use?   
 
A. Elevator Pitch 
B. A pitch deck with oral narrative 
C. A written presentation for external stakeholders 
D. An internal operational plan  
1 mark 
 OR  
 Ab ltd. was into manufacturing security cameras for household and commercial 
buildings. Their Research and development team came up with a new idea of 
manufacturing drones as security cameras which will give a 360-degree view of 
the entire building. They needed huge finance for the same. The company MD 
Sharath heard of this group of venture capitalists who are ready to invest in new 
ideas. He seeked an appointment with them and started preparation of a business 
plan to be presented before them. His plan was to make an informative power 
point presentation showing key graphs of financial trends. It was meant to trigger 
discussion among the members. Which format of business plan is Sharath using?  
 
A. Elevator Pitch 
B. A pitch deck with oral narrative 
C. A written presentation for external stakeholders 
D. An internal operational plan 
1 mark  
Q.6 Mallika was selling vegetables in her cart along with her mother. They were able 
to earn a profit of around Rs.200 every day. Even though the amount was not 
substantial it was sufficient for a decent living. Mallika often noticed that nuclear 
families where both husband and wife go to work find it difficult to cook as 
cleaning and cutting vegetables took a lot of time, so an entrepreneur she started 
gathering information regularly and developed a new product line of selling cut 
vegetables in hygienic packaging. Mallika used ……..trend to spot this idea.  
 
1 mark  
Q.7 Vinita, Bhavana, Rani and Nandini are all good friends in the age group of 15-17 1 mark  
Page 3


  
  Page 1 
 
SAMPLE PAPER  
ENTREPRENEURSHIP (066) 
CLASS XII 
  Time 3 Hrs                                                                                                                        Max Marks: 70  
 
General instructions: 
? There is no overall choice, though internal choice is given. 
? Read the question carefully before attempting. 
 
Q.1 Sudha started her small-scale business of making Pickles along with few of her 
neighbors using their free time at home. They named their venture ‘Home Sweet 
Home’. They were able to supply the entire district. One of the members 
suggested that they should expand and start selling to other states. When she 
discussed the same to her husband, he suggested that they have to properly look 
into the environment analysing the competitors. He suggested Sudha to   
 
A. formulate policies 
B. Tap useful resources 
C. Environment scanning 
D. Image building 
1 mark 
Q.2 Anant and Anandi together took over their family business of furniture. They 
understood that the present competitors were using online means to sell their 
products. They decided on a new idea of providing furniture on a rental basis to 
offices and households and to also start making furniture using the traditional 
method which caught the attention of the new generation. They opened stores in 
various cities and started selling through online mode also. They both are using 
the service-related idea field.  
Mention whether the idea field identified is true or false.   
1 mark 
Q.3 Vikrant was always interested in technology driven products. After finishing his 
engineering degree, he started working on a new walking stick which will help 
blind people. The stick will be Bluetooth and wi-fi enabled which will be 
connected through an app on the phone which will guide the blind persons about 
the objects in front of their walking path. He has started testing the walking stick 
and found that the stakeholders were satisfied and it had a great value to the 
customers. Vikrant is in ………... stage of innovation process.    
1 mark 
Q.4 Hemant approached his father seeking Rs.5,00,000 for his new venture. He had 
planned to start a computer assembling unit. Though his father was in a position 
to give him the money he still insisted that he should take a loan from the bank 
which will make him more responsible. When Hemant approached the bankers, 
they asked for a business plan. Hemant was not sure as to who can help him in 
preparation of the business plan. Who among the following can prepare the 
business plan? 
 
1 mark 
  
  Page 2 
 
A. Lawyers 
B. Accountants 
C. Marketing consultants 
D. All of the above  
Q.5 Varun along with his friends had a brilliant idea to manufacture an air 
conditioner which will also act as an air purifier. The idea was new and the 
market did not have such a successful product. For starting the unit, they were in 
need of huge funds, so they decided to approach Shankar, a successful 
businessman and who is also a venture capitalist. However, Shankar said that he 
was very busy and if they could pitch their idea within a span of 3 minutes, he 
was ready to hear it. Which format of Business plan will Varun and his friends 
would have to use?   
 
A. Elevator Pitch 
B. A pitch deck with oral narrative 
C. A written presentation for external stakeholders 
D. An internal operational plan  
1 mark 
 OR  
 Ab ltd. was into manufacturing security cameras for household and commercial 
buildings. Their Research and development team came up with a new idea of 
manufacturing drones as security cameras which will give a 360-degree view of 
the entire building. They needed huge finance for the same. The company MD 
Sharath heard of this group of venture capitalists who are ready to invest in new 
ideas. He seeked an appointment with them and started preparation of a business 
plan to be presented before them. His plan was to make an informative power 
point presentation showing key graphs of financial trends. It was meant to trigger 
discussion among the members. Which format of business plan is Sharath using?  
 
A. Elevator Pitch 
B. A pitch deck with oral narrative 
C. A written presentation for external stakeholders 
D. An internal operational plan 
1 mark  
Q.6 Mallika was selling vegetables in her cart along with her mother. They were able 
to earn a profit of around Rs.200 every day. Even though the amount was not 
substantial it was sufficient for a decent living. Mallika often noticed that nuclear 
families where both husband and wife go to work find it difficult to cook as 
cleaning and cutting vegetables took a lot of time, so an entrepreneur she started 
gathering information regularly and developed a new product line of selling cut 
vegetables in hygienic packaging. Mallika used ……..trend to spot this idea.  
 
1 mark  
Q.7 Vinita, Bhavana, Rani and Nandini are all good friends in the age group of 15-17 1 mark  
  
  Page 3 
 
years of age. All of them decided together to start a business venture of making 
soaps at home using natural ingredients. They decided to name their venture as 
‘O&HM’ meaning Organic and Home Made. They spoke about their venture to 
their parents and asked them if their business could be registered so that it will 
be easy to divide the profits. Vinita suggested that they should register it as a 
Partnership firm. Can they form a partnership firm? 
 
A. No, they cannot form a partnership firm since all of them are minors 
B. Yes, they can form a partnership firm  
C. No, since minimum number of people required to form a partnership is 
10  
D. None of the above  
Q.8 Arvind planned to start a small fast-food joint in his area after finishing his 
degree in hospitality management. His plan was to combine and use healthy 
ingredients like whole wheat flour to make the burger buns. He knew that he had 
to start collecting information from different sources which will help him to 
identify the right opportunity to start his business. From where will Arvind get 
the necessary information? 
 
A. Magazines 
B. Shows 
C. Family Members  
D. All of the above  
1 mark 
 OR  
 Victor industries has been one of the leading companies in Mobile phone 
industry in India. The company decided to launch a new Model AI 1 which will 
have inbuilt latest software to encourage hands free use and enhance the 
customer experience through 3D photos. They are also looking into ideas to use 
ecofriendly recyclable materials for the body of the phone which will cause less 
environmental damage. Identify the two factors of PESTEL model from the 
above case study. 
A. Economic, Social 
B. Ecological, Technological 
C. Legal, Economic 
D. Social, Political 
1 mark 
Q.9 
Which of the following is not a component of Brand? 
 A.            Brand name 
 B.            Brand Mark 
1 mark 
Page 4


  
  Page 1 
 
SAMPLE PAPER  
ENTREPRENEURSHIP (066) 
CLASS XII 
  Time 3 Hrs                                                                                                                        Max Marks: 70  
 
General instructions: 
? There is no overall choice, though internal choice is given. 
? Read the question carefully before attempting. 
 
Q.1 Sudha started her small-scale business of making Pickles along with few of her 
neighbors using their free time at home. They named their venture ‘Home Sweet 
Home’. They were able to supply the entire district. One of the members 
suggested that they should expand and start selling to other states. When she 
discussed the same to her husband, he suggested that they have to properly look 
into the environment analysing the competitors. He suggested Sudha to   
 
A. formulate policies 
B. Tap useful resources 
C. Environment scanning 
D. Image building 
1 mark 
Q.2 Anant and Anandi together took over their family business of furniture. They 
understood that the present competitors were using online means to sell their 
products. They decided on a new idea of providing furniture on a rental basis to 
offices and households and to also start making furniture using the traditional 
method which caught the attention of the new generation. They opened stores in 
various cities and started selling through online mode also. They both are using 
the service-related idea field.  
Mention whether the idea field identified is true or false.   
1 mark 
Q.3 Vikrant was always interested in technology driven products. After finishing his 
engineering degree, he started working on a new walking stick which will help 
blind people. The stick will be Bluetooth and wi-fi enabled which will be 
connected through an app on the phone which will guide the blind persons about 
the objects in front of their walking path. He has started testing the walking stick 
and found that the stakeholders were satisfied and it had a great value to the 
customers. Vikrant is in ………... stage of innovation process.    
1 mark 
Q.4 Hemant approached his father seeking Rs.5,00,000 for his new venture. He had 
planned to start a computer assembling unit. Though his father was in a position 
to give him the money he still insisted that he should take a loan from the bank 
which will make him more responsible. When Hemant approached the bankers, 
they asked for a business plan. Hemant was not sure as to who can help him in 
preparation of the business plan. Who among the following can prepare the 
business plan? 
 
1 mark 
  
  Page 2 
 
A. Lawyers 
B. Accountants 
C. Marketing consultants 
D. All of the above  
Q.5 Varun along with his friends had a brilliant idea to manufacture an air 
conditioner which will also act as an air purifier. The idea was new and the 
market did not have such a successful product. For starting the unit, they were in 
need of huge funds, so they decided to approach Shankar, a successful 
businessman and who is also a venture capitalist. However, Shankar said that he 
was very busy and if they could pitch their idea within a span of 3 minutes, he 
was ready to hear it. Which format of Business plan will Varun and his friends 
would have to use?   
 
A. Elevator Pitch 
B. A pitch deck with oral narrative 
C. A written presentation for external stakeholders 
D. An internal operational plan  
1 mark 
 OR  
 Ab ltd. was into manufacturing security cameras for household and commercial 
buildings. Their Research and development team came up with a new idea of 
manufacturing drones as security cameras which will give a 360-degree view of 
the entire building. They needed huge finance for the same. The company MD 
Sharath heard of this group of venture capitalists who are ready to invest in new 
ideas. He seeked an appointment with them and started preparation of a business 
plan to be presented before them. His plan was to make an informative power 
point presentation showing key graphs of financial trends. It was meant to trigger 
discussion among the members. Which format of business plan is Sharath using?  
 
A. Elevator Pitch 
B. A pitch deck with oral narrative 
C. A written presentation for external stakeholders 
D. An internal operational plan 
1 mark  
Q.6 Mallika was selling vegetables in her cart along with her mother. They were able 
to earn a profit of around Rs.200 every day. Even though the amount was not 
substantial it was sufficient for a decent living. Mallika often noticed that nuclear 
families where both husband and wife go to work find it difficult to cook as 
cleaning and cutting vegetables took a lot of time, so an entrepreneur she started 
gathering information regularly and developed a new product line of selling cut 
vegetables in hygienic packaging. Mallika used ……..trend to spot this idea.  
 
1 mark  
Q.7 Vinita, Bhavana, Rani and Nandini are all good friends in the age group of 15-17 1 mark  
  
  Page 3 
 
years of age. All of them decided together to start a business venture of making 
soaps at home using natural ingredients. They decided to name their venture as 
‘O&HM’ meaning Organic and Home Made. They spoke about their venture to 
their parents and asked them if their business could be registered so that it will 
be easy to divide the profits. Vinita suggested that they should register it as a 
Partnership firm. Can they form a partnership firm? 
 
A. No, they cannot form a partnership firm since all of them are minors 
B. Yes, they can form a partnership firm  
C. No, since minimum number of people required to form a partnership is 
10  
D. None of the above  
Q.8 Arvind planned to start a small fast-food joint in his area after finishing his 
degree in hospitality management. His plan was to combine and use healthy 
ingredients like whole wheat flour to make the burger buns. He knew that he had 
to start collecting information from different sources which will help him to 
identify the right opportunity to start his business. From where will Arvind get 
the necessary information? 
 
A. Magazines 
B. Shows 
C. Family Members  
D. All of the above  
1 mark 
 OR  
 Victor industries has been one of the leading companies in Mobile phone 
industry in India. The company decided to launch a new Model AI 1 which will 
have inbuilt latest software to encourage hands free use and enhance the 
customer experience through 3D photos. They are also looking into ideas to use 
ecofriendly recyclable materials for the body of the phone which will cause less 
environmental damage. Identify the two factors of PESTEL model from the 
above case study. 
A. Economic, Social 
B. Ecological, Technological 
C. Legal, Economic 
D. Social, Political 
1 mark 
Q.9 
Which of the following is not a component of Brand? 
 A.            Brand name 
 B.            Brand Mark 
1 mark 
  
  Page 4 
 
C.            Logo 
D.            Trademark 
 
OR 
 
 
 'Maharaja' of Air India is  
  A. Brand name 
  B. Brand Mark 
  C. Brand 
  D.  Trademark 
1 mark  
Q.10 
Advertising is? 
A. A paid form of communication 
B. Selling products personally 
C. A deliberate effort done to establish and maintain mutual understanding 
between organization and public 
D. It relates to short term incentives  
1 mark 
 OR  
 Which of the following are the four rules when planning any advertising 
activity? 
 
A. Aim 
B. Competitors 
C. Media 
D. All of the above  
1 mark 
Q.11 
‘Umbrella branding’ is? 
 A. Entrepreneur opts to use a common or successful family name for their 
several products. 
 B. Entrepreneurs choose to utilise their corporate name or logo together with 
some brand names of individual products. 
C. Entrepreneur uses alpha-numeric names to signify physical characteristics of 
the product. 
D.  Entrepreneur chooses distinct names for each of his offerings. 
 
 
 
 
 
 
1 mark  
Page 5


  
  Page 1 
 
SAMPLE PAPER  
ENTREPRENEURSHIP (066) 
CLASS XII 
  Time 3 Hrs                                                                                                                        Max Marks: 70  
 
General instructions: 
? There is no overall choice, though internal choice is given. 
? Read the question carefully before attempting. 
 
Q.1 Sudha started her small-scale business of making Pickles along with few of her 
neighbors using their free time at home. They named their venture ‘Home Sweet 
Home’. They were able to supply the entire district. One of the members 
suggested that they should expand and start selling to other states. When she 
discussed the same to her husband, he suggested that they have to properly look 
into the environment analysing the competitors. He suggested Sudha to   
 
A. formulate policies 
B. Tap useful resources 
C. Environment scanning 
D. Image building 
1 mark 
Q.2 Anant and Anandi together took over their family business of furniture. They 
understood that the present competitors were using online means to sell their 
products. They decided on a new idea of providing furniture on a rental basis to 
offices and households and to also start making furniture using the traditional 
method which caught the attention of the new generation. They opened stores in 
various cities and started selling through online mode also. They both are using 
the service-related idea field.  
Mention whether the idea field identified is true or false.   
1 mark 
Q.3 Vikrant was always interested in technology driven products. After finishing his 
engineering degree, he started working on a new walking stick which will help 
blind people. The stick will be Bluetooth and wi-fi enabled which will be 
connected through an app on the phone which will guide the blind persons about 
the objects in front of their walking path. He has started testing the walking stick 
and found that the stakeholders were satisfied and it had a great value to the 
customers. Vikrant is in ………... stage of innovation process.    
1 mark 
Q.4 Hemant approached his father seeking Rs.5,00,000 for his new venture. He had 
planned to start a computer assembling unit. Though his father was in a position 
to give him the money he still insisted that he should take a loan from the bank 
which will make him more responsible. When Hemant approached the bankers, 
they asked for a business plan. Hemant was not sure as to who can help him in 
preparation of the business plan. Who among the following can prepare the 
business plan? 
 
1 mark 
  
  Page 2 
 
A. Lawyers 
B. Accountants 
C. Marketing consultants 
D. All of the above  
Q.5 Varun along with his friends had a brilliant idea to manufacture an air 
conditioner which will also act as an air purifier. The idea was new and the 
market did not have such a successful product. For starting the unit, they were in 
need of huge funds, so they decided to approach Shankar, a successful 
businessman and who is also a venture capitalist. However, Shankar said that he 
was very busy and if they could pitch their idea within a span of 3 minutes, he 
was ready to hear it. Which format of Business plan will Varun and his friends 
would have to use?   
 
A. Elevator Pitch 
B. A pitch deck with oral narrative 
C. A written presentation for external stakeholders 
D. An internal operational plan  
1 mark 
 OR  
 Ab ltd. was into manufacturing security cameras for household and commercial 
buildings. Their Research and development team came up with a new idea of 
manufacturing drones as security cameras which will give a 360-degree view of 
the entire building. They needed huge finance for the same. The company MD 
Sharath heard of this group of venture capitalists who are ready to invest in new 
ideas. He seeked an appointment with them and started preparation of a business 
plan to be presented before them. His plan was to make an informative power 
point presentation showing key graphs of financial trends. It was meant to trigger 
discussion among the members. Which format of business plan is Sharath using?  
 
A. Elevator Pitch 
B. A pitch deck with oral narrative 
C. A written presentation for external stakeholders 
D. An internal operational plan 
1 mark  
Q.6 Mallika was selling vegetables in her cart along with her mother. They were able 
to earn a profit of around Rs.200 every day. Even though the amount was not 
substantial it was sufficient for a decent living. Mallika often noticed that nuclear 
families where both husband and wife go to work find it difficult to cook as 
cleaning and cutting vegetables took a lot of time, so an entrepreneur she started 
gathering information regularly and developed a new product line of selling cut 
vegetables in hygienic packaging. Mallika used ……..trend to spot this idea.  
 
1 mark  
Q.7 Vinita, Bhavana, Rani and Nandini are all good friends in the age group of 15-17 1 mark  
  
  Page 3 
 
years of age. All of them decided together to start a business venture of making 
soaps at home using natural ingredients. They decided to name their venture as 
‘O&HM’ meaning Organic and Home Made. They spoke about their venture to 
their parents and asked them if their business could be registered so that it will 
be easy to divide the profits. Vinita suggested that they should register it as a 
Partnership firm. Can they form a partnership firm? 
 
A. No, they cannot form a partnership firm since all of them are minors 
B. Yes, they can form a partnership firm  
C. No, since minimum number of people required to form a partnership is 
10  
D. None of the above  
Q.8 Arvind planned to start a small fast-food joint in his area after finishing his 
degree in hospitality management. His plan was to combine and use healthy 
ingredients like whole wheat flour to make the burger buns. He knew that he had 
to start collecting information from different sources which will help him to 
identify the right opportunity to start his business. From where will Arvind get 
the necessary information? 
 
A. Magazines 
B. Shows 
C. Family Members  
D. All of the above  
1 mark 
 OR  
 Victor industries has been one of the leading companies in Mobile phone 
industry in India. The company decided to launch a new Model AI 1 which will 
have inbuilt latest software to encourage hands free use and enhance the 
customer experience through 3D photos. They are also looking into ideas to use 
ecofriendly recyclable materials for the body of the phone which will cause less 
environmental damage. Identify the two factors of PESTEL model from the 
above case study. 
A. Economic, Social 
B. Ecological, Technological 
C. Legal, Economic 
D. Social, Political 
1 mark 
Q.9 
Which of the following is not a component of Brand? 
 A.            Brand name 
 B.            Brand Mark 
1 mark 
  
  Page 4 
 
C.            Logo 
D.            Trademark 
 
OR 
 
 
 'Maharaja' of Air India is  
  A. Brand name 
  B. Brand Mark 
  C. Brand 
  D.  Trademark 
1 mark  
Q.10 
Advertising is? 
A. A paid form of communication 
B. Selling products personally 
C. A deliberate effort done to establish and maintain mutual understanding 
between organization and public 
D. It relates to short term incentives  
1 mark 
 OR  
 Which of the following are the four rules when planning any advertising 
activity? 
 
A. Aim 
B. Competitors 
C. Media 
D. All of the above  
1 mark 
Q.11 
‘Umbrella branding’ is? 
 A. Entrepreneur opts to use a common or successful family name for their 
several products. 
 B. Entrepreneurs choose to utilise their corporate name or logo together with 
some brand names of individual products. 
C. Entrepreneur uses alpha-numeric names to signify physical characteristics of 
the product. 
D.  Entrepreneur chooses distinct names for each of his offerings. 
 
 
 
 
 
 
1 mark  
  
  Page 5 
 
 
Q.12 
Given below are types of mergers with examples of each. Match them correctly. 
Column A- Types of Mergers Column B- Examples 
i. Vertical Merger a. A watch manufacturer acquiring a 
cement manufacturer 
ii. Market Extension merger b. Bank of Madura merged with 
ICICI Bank 
iii. Conglomerate c. A textile company acquires a 
cotton yarn manufacturer  
iv. Horizontal Merger d. Hindustan Unilever Company 
acquired Lakme, it helped HUL to 
enter the cosmetics market  
 
A.  i-a ,ii-b ,iii- c ,iv-d 
B. i-c ,ii-d ,iii- a ,iv-b 
C. i-a ,ii-c ,iii- b ,iv-d 
D. i-c ,ii-b ,iii- a ,iv-d 
1 mark  
Q.13 What is common among McDonalds, Goli vada pav, Naturals Ice-creams and 
Ferns-and-petals? 
A. All are Multinational corporations working in India. 
B. All have adopted franchising as their growth strategy. 
C. All have merged with big companies. 
D. All of the above 
1 mark  
Q.14 Both mergers and acquisitions are enterprise growth strategies but how they 
come into existence makes them different from each other. Which of the given 
statements below justifies the given statement? 
A. Merger is always friendly, whereas acquisition is always hostile. 
B. Merger may be friendly, whereas acquisition is always hostile. 
C. Merger is always depending on synergy, whereas acquisition is never 
based on synergy. 
D. Merger is consensual, whereas acquisition is forced. 
1 mark