Class 12 Entrepreneurship Previous Year Paper - 5 | Entrepreneurship Class 12 - Commerce PDF Download

 Page 1


Page 1 of 5 
 
                     
Roll Number                          SET A 
General Instructions: 
 
a. This paper contains 24 questions in 5 parts and all the questions are compulsory. 
b. Internal choice is given in selected questions. 
c. There is no word limit for numerical questions. 
d. The instructions for each part are given separately .Read them carefully and follow. 
 
PART A 
This part contains 5 questions carrying 1 mark each. Answers to these questions should be from one word 
to one sentence 
 
1 Distinguish between 'Sales Tax' and 'Excise Duty'.  
 
1 
2 What is meant by „Employment??  
 
1 
3 Give the meaning of 'Legal Environment.' 
 
                                    OR 
 
What is trend spotting? 
 
1 
4 What is Innovation? 1 
5 Rahul wants to start an amusement park near Vishakhapattanam. This will require an investment 
of ?.50 lakhs. Name the financial institution which Rahul should approach for financing this 
venture. 
OR 
 
Patamadai, a small town resides along the banks of the Tamaraparani river, 20Kms away from 
Tirunelveli in Tamilnadu. This place is world famous for its silken mats woven from grass. The 
majority of mats made in here have cotton warps and korai wefts. The process of mat weaving is 
time consuming and painstaking. This handicraft industry has gone through a cycle of transition 
from being most coveted to the most ignored. Producers had changed the method of production 
but off late many of them are reverting back to traditional methods of dyeing and processing the 
korai grass. Mass production now requires more finance. Which financial institution these 
producers should approach for help? 
 
1 
 
 
FIRST PRELIMINARY EXAMINATION  
 
 
ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs 
  Max. Marks: 70 
Page 2


Page 1 of 5 
 
                     
Roll Number                          SET A 
General Instructions: 
 
a. This paper contains 24 questions in 5 parts and all the questions are compulsory. 
b. Internal choice is given in selected questions. 
c. There is no word limit for numerical questions. 
d. The instructions for each part are given separately .Read them carefully and follow. 
 
PART A 
This part contains 5 questions carrying 1 mark each. Answers to these questions should be from one word 
to one sentence 
 
1 Distinguish between 'Sales Tax' and 'Excise Duty'.  
 
1 
2 What is meant by „Employment??  
 
1 
3 Give the meaning of 'Legal Environment.' 
 
                                    OR 
 
What is trend spotting? 
 
1 
4 What is Innovation? 1 
5 Rahul wants to start an amusement park near Vishakhapattanam. This will require an investment 
of ?.50 lakhs. Name the financial institution which Rahul should approach for financing this 
venture. 
OR 
 
Patamadai, a small town resides along the banks of the Tamaraparani river, 20Kms away from 
Tirunelveli in Tamilnadu. This place is world famous for its silken mats woven from grass. The 
majority of mats made in here have cotton warps and korai wefts. The process of mat weaving is 
time consuming and painstaking. This handicraft industry has gone through a cycle of transition 
from being most coveted to the most ignored. Producers had changed the method of production 
but off late many of them are reverting back to traditional methods of dyeing and processing the 
korai grass. Mass production now requires more finance. Which financial institution these 
producers should approach for help? 
 
1 
 
 
FIRST PRELIMINARY EXAMINATION  
 
 
ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs 
  Max. Marks: 70 
Page 2 of 5 
 
PART B 
 
This part contains 5 questions carrying 2 marks each. Answers to these questions should be 
in 50 to 75 words. 
 
 
6 It is a process that can allow an organization to concentrate its resources on the optimal 
opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. 
Identify the concept and mention the components of the identified concept.  
 
2 
7 Give the meaning of 'Routing' and 'Scheduling' as elements of operational plan. 
 
OR 
 
A summary of the projected assets, liabilities and net worth of the entrepreneur is depicted through 
a proforma that helps entrepreneur to reflect the position of the business at the end of its first year. 
Identify the term referred here. To which component of Business Plan the Term belongs to? 
 
2 
8 Mention any two importance of Business Plan. 2 
9 With its help the consumers are able to identify the products of a firm and are also able to 
differentiate them from those of the competitors. Identify the concept and state its components. 
 
OR 
 
“It is the mixture of controllable variables that the firm uses to pursue the sought level of sales in 
the market”. Identify the concept and mention the components 
 
2 
10 A business enterprise which works with the principle of each for all and all for each. 
Name the form of enterprise and mention any two features.  
 
PART C 
 
This part contains 7 questions carrying 3 marks each. Answers to these questions should be 
in about 100 words. 
 
2 
11 What is meant by "Problem Identification"? State it?s any four uses. 3 
12 Deepak and Gaurav joined the prestigious law university in Ahmadabad in the year 2017. During 
the course of study they became good friends and they both realized that their common interest 
lies in the field of corporate law. After completion of their degree they decided to start a firm of 
corporate of their own, namely „Legality? wherein both of them will be co-owners dividing the 
profit and loss. After a year of service, they realised that there are certain rights which are denied 
to their firm as it?s not registered. 
 
Identify the form of organization structure in the case and mention any two consequences of non –
registration of a firm. 
OR 
 
An entrepreneur who is interested to operate his or her enterprise as an HUF is required to comply 
with various requirements. Explain any three such requirements. 
 
3 
Page 3


Page 1 of 5 
 
                     
Roll Number                          SET A 
General Instructions: 
 
a. This paper contains 24 questions in 5 parts and all the questions are compulsory. 
b. Internal choice is given in selected questions. 
c. There is no word limit for numerical questions. 
d. The instructions for each part are given separately .Read them carefully and follow. 
 
PART A 
This part contains 5 questions carrying 1 mark each. Answers to these questions should be from one word 
to one sentence 
 
1 Distinguish between 'Sales Tax' and 'Excise Duty'.  
 
1 
2 What is meant by „Employment??  
 
1 
3 Give the meaning of 'Legal Environment.' 
 
                                    OR 
 
What is trend spotting? 
 
1 
4 What is Innovation? 1 
5 Rahul wants to start an amusement park near Vishakhapattanam. This will require an investment 
of ?.50 lakhs. Name the financial institution which Rahul should approach for financing this 
venture. 
OR 
 
Patamadai, a small town resides along the banks of the Tamaraparani river, 20Kms away from 
Tirunelveli in Tamilnadu. This place is world famous for its silken mats woven from grass. The 
majority of mats made in here have cotton warps and korai wefts. The process of mat weaving is 
time consuming and painstaking. This handicraft industry has gone through a cycle of transition 
from being most coveted to the most ignored. Producers had changed the method of production 
but off late many of them are reverting back to traditional methods of dyeing and processing the 
korai grass. Mass production now requires more finance. Which financial institution these 
producers should approach for help? 
 
1 
 
 
FIRST PRELIMINARY EXAMINATION  
 
 
ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs 
  Max. Marks: 70 
Page 2 of 5 
 
PART B 
 
This part contains 5 questions carrying 2 marks each. Answers to these questions should be 
in 50 to 75 words. 
 
 
6 It is a process that can allow an organization to concentrate its resources on the optimal 
opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. 
Identify the concept and mention the components of the identified concept.  
 
2 
7 Give the meaning of 'Routing' and 'Scheduling' as elements of operational plan. 
 
OR 
 
A summary of the projected assets, liabilities and net worth of the entrepreneur is depicted through 
a proforma that helps entrepreneur to reflect the position of the business at the end of its first year. 
Identify the term referred here. To which component of Business Plan the Term belongs to? 
 
2 
8 Mention any two importance of Business Plan. 2 
9 With its help the consumers are able to identify the products of a firm and are also able to 
differentiate them from those of the competitors. Identify the concept and state its components. 
 
OR 
 
“It is the mixture of controllable variables that the firm uses to pursue the sought level of sales in 
the market”. Identify the concept and mention the components 
 
2 
10 A business enterprise which works with the principle of each for all and all for each. 
Name the form of enterprise and mention any two features.  
 
PART C 
 
This part contains 7 questions carrying 3 marks each. Answers to these questions should be 
in about 100 words. 
 
2 
11 What is meant by "Problem Identification"? State it?s any four uses. 3 
12 Deepak and Gaurav joined the prestigious law university in Ahmadabad in the year 2017. During 
the course of study they became good friends and they both realized that their common interest 
lies in the field of corporate law. After completion of their degree they decided to start a firm of 
corporate of their own, namely „Legality? wherein both of them will be co-owners dividing the 
profit and loss. After a year of service, they realised that there are certain rights which are denied 
to their firm as it?s not registered. 
 
Identify the form of organization structure in the case and mention any two consequences of non –
registration of a firm. 
OR 
 
An entrepreneur who is interested to operate his or her enterprise as an HUF is required to comply 
with various requirements. Explain any three such requirements. 
 
3 
Page 3 of 5 
 
13 State the advantages of 'Good Negotiations'. 
 
3 
14 'For the smooth and orderly functioning of corporate sector in a free market economy, stock 
exchanges are indispensable because of different roles played by them for different groups.' 
Explain the importance of stock exchange to investors in the light of this statement. 
 
3 
15 '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 Order Quantity' for 'The Fancy Store'. 
 
OR 
 
The raja and Company has the following items in its Balance Sheet: stock -50,000 ; trade creditors 
-30,000; debtors -70,000; cash -100,000; dividend payable-45,000;short term loans-60,000; short 
term investments-75,000; tax45,000. 
Calculate gross and net working capital. 
 
3 
16 Naveen after completing his M. Tech in Nano Technology wanted to start his own business. He 
thought to manufacture sophisticated instruments used in surgery. He knew that his knowledge of 
Nano Technology will help him in manufacturing these instruments. According to him such 
instruments will help the surgeons to operate upon the patients with accuracy, with minimum 
blood loss and quick post operation recovery. Such types of instruments are used in advanced 
countries only and there was a risk in marketing the same. The cost price of machinery required 
for manufacturing such instruments was very high and more research was required in this field of 
Nano Technology. For seed funding, Naveen approached 'Himani Capital Ltd.', who finance such 
types of projects. 'Himani Capitals Ltd.' after analysing the proposal agreed to provide seed capital 
to Naveen. 
 
 Explain the different stages of 'Early stage financing' to seek venture capital finance after the one 
discussed above. 
OR 
 
Going public is a complex decision that requires careful consideration and planning. Entrepreneurs 
should examine their current and future capital needs, and be aware of how an IPO will affect the 
availability of future financing. What are the drawbacks to an entrepreneur in going public?  
 
3 
17 'Pure Neer India Ltd.' is the manufacturers of water purifiers. The company has developed a new 
water purifier that not only converts the hard water into soft water but also kills the bacteria and 
other harmful micro organisms present in it. The company has named this water purifier as 
'Nirmal Neer' and for its marketing, appointed 500 salesmen throughout the country. The company 
also trained the salesmen to provide information about the usefulness of the 'Nirmal Neer' water 
purifiers to the customers and motivate them to buy the same.  
 
(a) Name and explain the 'type of promotion strategy' adopted by the company. 
(b) Also identify the channel of distribution used by the company. 
 
 
 
 
 
3 
Page 4


Page 1 of 5 
 
                     
Roll Number                          SET A 
General Instructions: 
 
a. This paper contains 24 questions in 5 parts and all the questions are compulsory. 
b. Internal choice is given in selected questions. 
c. There is no word limit for numerical questions. 
d. The instructions for each part are given separately .Read them carefully and follow. 
 
PART A 
This part contains 5 questions carrying 1 mark each. Answers to these questions should be from one word 
to one sentence 
 
1 Distinguish between 'Sales Tax' and 'Excise Duty'.  
 
1 
2 What is meant by „Employment??  
 
1 
3 Give the meaning of 'Legal Environment.' 
 
                                    OR 
 
What is trend spotting? 
 
1 
4 What is Innovation? 1 
5 Rahul wants to start an amusement park near Vishakhapattanam. This will require an investment 
of ?.50 lakhs. Name the financial institution which Rahul should approach for financing this 
venture. 
OR 
 
Patamadai, a small town resides along the banks of the Tamaraparani river, 20Kms away from 
Tirunelveli in Tamilnadu. This place is world famous for its silken mats woven from grass. The 
majority of mats made in here have cotton warps and korai wefts. The process of mat weaving is 
time consuming and painstaking. This handicraft industry has gone through a cycle of transition 
from being most coveted to the most ignored. Producers had changed the method of production 
but off late many of them are reverting back to traditional methods of dyeing and processing the 
korai grass. Mass production now requires more finance. Which financial institution these 
producers should approach for help? 
 
1 
 
 
FIRST PRELIMINARY EXAMINATION  
 
 
ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs 
  Max. Marks: 70 
Page 2 of 5 
 
PART B 
 
This part contains 5 questions carrying 2 marks each. Answers to these questions should be 
in 50 to 75 words. 
 
 
6 It is a process that can allow an organization to concentrate its resources on the optimal 
opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. 
Identify the concept and mention the components of the identified concept.  
 
2 
7 Give the meaning of 'Routing' and 'Scheduling' as elements of operational plan. 
 
OR 
 
A summary of the projected assets, liabilities and net worth of the entrepreneur is depicted through 
a proforma that helps entrepreneur to reflect the position of the business at the end of its first year. 
Identify the term referred here. To which component of Business Plan the Term belongs to? 
 
2 
8 Mention any two importance of Business Plan. 2 
9 With its help the consumers are able to identify the products of a firm and are also able to 
differentiate them from those of the competitors. Identify the concept and state its components. 
 
OR 
 
“It is the mixture of controllable variables that the firm uses to pursue the sought level of sales in 
the market”. Identify the concept and mention the components 
 
2 
10 A business enterprise which works with the principle of each for all and all for each. 
Name the form of enterprise and mention any two features.  
 
PART C 
 
This part contains 7 questions carrying 3 marks each. Answers to these questions should be 
in about 100 words. 
 
2 
11 What is meant by "Problem Identification"? State it?s any four uses. 3 
12 Deepak and Gaurav joined the prestigious law university in Ahmadabad in the year 2017. During 
the course of study they became good friends and they both realized that their common interest 
lies in the field of corporate law. After completion of their degree they decided to start a firm of 
corporate of their own, namely „Legality? wherein both of them will be co-owners dividing the 
profit and loss. After a year of service, they realised that there are certain rights which are denied 
to their firm as it?s not registered. 
 
Identify the form of organization structure in the case and mention any two consequences of non –
registration of a firm. 
OR 
 
An entrepreneur who is interested to operate his or her enterprise as an HUF is required to comply 
with various requirements. Explain any three such requirements. 
 
3 
Page 3 of 5 
 
13 State the advantages of 'Good Negotiations'. 
 
3 
14 'For the smooth and orderly functioning of corporate sector in a free market economy, stock 
exchanges are indispensable because of different roles played by them for different groups.' 
Explain the importance of stock exchange to investors in the light of this statement. 
 
3 
15 '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 Order Quantity' for 'The Fancy Store'. 
 
OR 
 
The raja and Company has the following items in its Balance Sheet: stock -50,000 ; trade creditors 
-30,000; debtors -70,000; cash -100,000; dividend payable-45,000;short term loans-60,000; short 
term investments-75,000; tax45,000. 
Calculate gross and net working capital. 
 
3 
16 Naveen after completing his M. Tech in Nano Technology wanted to start his own business. He 
thought to manufacture sophisticated instruments used in surgery. He knew that his knowledge of 
Nano Technology will help him in manufacturing these instruments. According to him such 
instruments will help the surgeons to operate upon the patients with accuracy, with minimum 
blood loss and quick post operation recovery. Such types of instruments are used in advanced 
countries only and there was a risk in marketing the same. The cost price of machinery required 
for manufacturing such instruments was very high and more research was required in this field of 
Nano Technology. For seed funding, Naveen approached 'Himani Capital Ltd.', who finance such 
types of projects. 'Himani Capitals Ltd.' after analysing the proposal agreed to provide seed capital 
to Naveen. 
 
 Explain the different stages of 'Early stage financing' to seek venture capital finance after the one 
discussed above. 
OR 
 
Going public is a complex decision that requires careful consideration and planning. Entrepreneurs 
should examine their current and future capital needs, and be aware of how an IPO will affect the 
availability of future financing. What are the drawbacks to an entrepreneur in going public?  
 
3 
17 'Pure Neer India Ltd.' is the manufacturers of water purifiers. The company has developed a new 
water purifier that not only converts the hard water into soft water but also kills the bacteria and 
other harmful micro organisms present in it. The company has named this water purifier as 
'Nirmal Neer' and for its marketing, appointed 500 salesmen throughout the country. The company 
also trained the salesmen to provide information about the usefulness of the 'Nirmal Neer' water 
purifiers to the customers and motivate them to buy the same.  
 
(a) Name and explain the 'type of promotion strategy' adopted by the company. 
(b) Also identify the channel of distribution used by the company. 
 
 
 
 
 
3 
Page 4 of 5 
 
PART D 
 
This part contains 4 questions carrying 4 marks each. Answers to these questions should be 
in about 150 words. 
 
 
18 'Information for environmental scanning can be collected from several sources.' State any four 
such sources. 
OR 
 
Harish, after finishing his degree wanted to start his own business. He was confused as to the kind 
of business he should start. He attended a start-up session. One of the speakers stated that 
„Creativity can be used to spot and harness opportunities as well as be applies to develop new 
products and services?. State any four ways in which creative ideas can be generated. 
 
4 
19 After doing her M.Com from 'Himachal Pradesh University of Shimla', Komal went back to her 
village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of 
women of her village, so she formed an organization, the membership of which was open for all 
the women villagers on voluntary basis by paying  ? 500 only which will be treated as their 
capital. Komal knew that the land of her village was suitable for the farming of medicinal plants. 
So she motivated the members of her organizations for growing medicinal plants in their fields 
under the guidance and help of the local agricultural department. It was also decided that the 
organization will purchase the produce of each member and sell the same to drug manufacturing 
companies, at a very good price which was not possible for the members individually. The main 
objective of the organisation is to render services to its members rather than to earn profit. 
 
A computer training centre for young boys and girls of the village was started under the guidance 
of Komal from the surplus of the profits. 
 
(a) Name the process that helped Komal in developing an idea into an opportunity.  
(b) Identify the kind of organization that was formed by Komal.  
(c) State any two values which Komal wanted to communicate to the society. 
 
4 
20 It is a quantitative expression of a plan for a defined period of time. It may include planned sales 
volumes and revenues, resource quantities, costs and expenses. 
Identify the concept and mention the importance of identified concept to an entrepreneur. 
 
OR 
 
What is Cash Conversion Cycle? Explain the stages with a diagram. 
 
4 
21 'Jagriti Ltd' are the manufacturers of Cars for the last 15 years and was earning good profits. 
Recently, due to the irregular supply of parts by the suppliers the company could not make timely 
delivery of cars to its customers. The customers cancelled their bookings and there were very few 
new bookings. As a result the sale of the cars declined and also the profits. The management of the 
company analysed the problems and decided to take over those two firms because of whom the 
problems arose. One of them was supplying engines and the other tyres. The company also 
launched new discount schemes for its customers. It also decided to employ 200 unemployed 
young boys and girls to take up the cleaning operations using imported machines inside the 
factories as well as the surrounding areas. 
 
 
4 
Page 5


Page 1 of 5 
 
                     
Roll Number                          SET A 
General Instructions: 
 
a. This paper contains 24 questions in 5 parts and all the questions are compulsory. 
b. Internal choice is given in selected questions. 
c. There is no word limit for numerical questions. 
d. The instructions for each part are given separately .Read them carefully and follow. 
 
PART A 
This part contains 5 questions carrying 1 mark each. Answers to these questions should be from one word 
to one sentence 
 
1 Distinguish between 'Sales Tax' and 'Excise Duty'.  
 
1 
2 What is meant by „Employment??  
 
1 
3 Give the meaning of 'Legal Environment.' 
 
                                    OR 
 
What is trend spotting? 
 
1 
4 What is Innovation? 1 
5 Rahul wants to start an amusement park near Vishakhapattanam. This will require an investment 
of ?.50 lakhs. Name the financial institution which Rahul should approach for financing this 
venture. 
OR 
 
Patamadai, a small town resides along the banks of the Tamaraparani river, 20Kms away from 
Tirunelveli in Tamilnadu. This place is world famous for its silken mats woven from grass. The 
majority of mats made in here have cotton warps and korai wefts. The process of mat weaving is 
time consuming and painstaking. This handicraft industry has gone through a cycle of transition 
from being most coveted to the most ignored. Producers had changed the method of production 
but off late many of them are reverting back to traditional methods of dyeing and processing the 
korai grass. Mass production now requires more finance. Which financial institution these 
producers should approach for help? 
 
1 
 
 
FIRST PRELIMINARY EXAMINATION  
 
 
ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs 
  Max. Marks: 70 
Page 2 of 5 
 
PART B 
 
This part contains 5 questions carrying 2 marks each. Answers to these questions should be 
in 50 to 75 words. 
 
 
6 It is a process that can allow an organization to concentrate its resources on the optimal 
opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. 
Identify the concept and mention the components of the identified concept.  
 
2 
7 Give the meaning of 'Routing' and 'Scheduling' as elements of operational plan. 
 
OR 
 
A summary of the projected assets, liabilities and net worth of the entrepreneur is depicted through 
a proforma that helps entrepreneur to reflect the position of the business at the end of its first year. 
Identify the term referred here. To which component of Business Plan the Term belongs to? 
 
2 
8 Mention any two importance of Business Plan. 2 
9 With its help the consumers are able to identify the products of a firm and are also able to 
differentiate them from those of the competitors. Identify the concept and state its components. 
 
OR 
 
“It is the mixture of controllable variables that the firm uses to pursue the sought level of sales in 
the market”. Identify the concept and mention the components 
 
2 
10 A business enterprise which works with the principle of each for all and all for each. 
Name the form of enterprise and mention any two features.  
 
PART C 
 
This part contains 7 questions carrying 3 marks each. Answers to these questions should be 
in about 100 words. 
 
2 
11 What is meant by "Problem Identification"? State it?s any four uses. 3 
12 Deepak and Gaurav joined the prestigious law university in Ahmadabad in the year 2017. During 
the course of study they became good friends and they both realized that their common interest 
lies in the field of corporate law. After completion of their degree they decided to start a firm of 
corporate of their own, namely „Legality? wherein both of them will be co-owners dividing the 
profit and loss. After a year of service, they realised that there are certain rights which are denied 
to their firm as it?s not registered. 
 
Identify the form of organization structure in the case and mention any two consequences of non –
registration of a firm. 
OR 
 
An entrepreneur who is interested to operate his or her enterprise as an HUF is required to comply 
with various requirements. Explain any three such requirements. 
 
3 
Page 3 of 5 
 
13 State the advantages of 'Good Negotiations'. 
 
3 
14 'For the smooth and orderly functioning of corporate sector in a free market economy, stock 
exchanges are indispensable because of different roles played by them for different groups.' 
Explain the importance of stock exchange to investors in the light of this statement. 
 
3 
15 '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 Order Quantity' for 'The Fancy Store'. 
 
OR 
 
The raja and Company has the following items in its Balance Sheet: stock -50,000 ; trade creditors 
-30,000; debtors -70,000; cash -100,000; dividend payable-45,000;short term loans-60,000; short 
term investments-75,000; tax45,000. 
Calculate gross and net working capital. 
 
3 
16 Naveen after completing his M. Tech in Nano Technology wanted to start his own business. He 
thought to manufacture sophisticated instruments used in surgery. He knew that his knowledge of 
Nano Technology will help him in manufacturing these instruments. According to him such 
instruments will help the surgeons to operate upon the patients with accuracy, with minimum 
blood loss and quick post operation recovery. Such types of instruments are used in advanced 
countries only and there was a risk in marketing the same. The cost price of machinery required 
for manufacturing such instruments was very high and more research was required in this field of 
Nano Technology. For seed funding, Naveen approached 'Himani Capital Ltd.', who finance such 
types of projects. 'Himani Capitals Ltd.' after analysing the proposal agreed to provide seed capital 
to Naveen. 
 
 Explain the different stages of 'Early stage financing' to seek venture capital finance after the one 
discussed above. 
OR 
 
Going public is a complex decision that requires careful consideration and planning. Entrepreneurs 
should examine their current and future capital needs, and be aware of how an IPO will affect the 
availability of future financing. What are the drawbacks to an entrepreneur in going public?  
 
3 
17 'Pure Neer India Ltd.' is the manufacturers of water purifiers. The company has developed a new 
water purifier that not only converts the hard water into soft water but also kills the bacteria and 
other harmful micro organisms present in it. The company has named this water purifier as 
'Nirmal Neer' and for its marketing, appointed 500 salesmen throughout the country. The company 
also trained the salesmen to provide information about the usefulness of the 'Nirmal Neer' water 
purifiers to the customers and motivate them to buy the same.  
 
(a) Name and explain the 'type of promotion strategy' adopted by the company. 
(b) Also identify the channel of distribution used by the company. 
 
 
 
 
 
3 
Page 4 of 5 
 
PART D 
 
This part contains 4 questions carrying 4 marks each. Answers to these questions should be 
in about 150 words. 
 
 
18 'Information for environmental scanning can be collected from several sources.' State any four 
such sources. 
OR 
 
Harish, after finishing his degree wanted to start his own business. He was confused as to the kind 
of business he should start. He attended a start-up session. One of the speakers stated that 
„Creativity can be used to spot and harness opportunities as well as be applies to develop new 
products and services?. State any four ways in which creative ideas can be generated. 
 
4 
19 After doing her M.Com from 'Himachal Pradesh University of Shimla', Komal went back to her 
village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of 
women of her village, so she formed an organization, the membership of which was open for all 
the women villagers on voluntary basis by paying  ? 500 only which will be treated as their 
capital. Komal knew that the land of her village was suitable for the farming of medicinal plants. 
So she motivated the members of her organizations for growing medicinal plants in their fields 
under the guidance and help of the local agricultural department. It was also decided that the 
organization will purchase the produce of each member and sell the same to drug manufacturing 
companies, at a very good price which was not possible for the members individually. The main 
objective of the organisation is to render services to its members rather than to earn profit. 
 
A computer training centre for young boys and girls of the village was started under the guidance 
of Komal from the surplus of the profits. 
 
(a) Name the process that helped Komal in developing an idea into an opportunity.  
(b) Identify the kind of organization that was formed by Komal.  
(c) State any two values which Komal wanted to communicate to the society. 
 
4 
20 It is a quantitative expression of a plan for a defined period of time. It may include planned sales 
volumes and revenues, resource quantities, costs and expenses. 
Identify the concept and mention the importance of identified concept to an entrepreneur. 
 
OR 
 
What is Cash Conversion Cycle? Explain the stages with a diagram. 
 
4 
21 'Jagriti Ltd' are the manufacturers of Cars for the last 15 years and was earning good profits. 
Recently, due to the irregular supply of parts by the suppliers the company could not make timely 
delivery of cars to its customers. The customers cancelled their bookings and there were very few 
new bookings. As a result the sale of the cars declined and also the profits. The management of the 
company analysed the problems and decided to take over those two firms because of whom the 
problems arose. One of them was supplying engines and the other tyres. The company also 
launched new discount schemes for its customers. It also decided to employ 200 unemployed 
young boys and girls to take up the cleaning operations using imported machines inside the 
factories as well as the surrounding areas. 
 
 
4 
Page 5 of 5 
 
 (a) Identify and state the concept of 'Enterprise Marketing and Growth Strategies' discussed in the 
above para.  
(b) Identify anyone value which 'Jagriti Ltd' wanted to communicate to the society. 
 
PART E 
 
This part contains 3 questions carrying 6 marks each. Answers to these questions should be 
in about 200 words. 
 
22 'The process of generation of ideas' can be streamlined by developing awareness about it and these 
work as the convenient frames of references for this?. 
 
(a) Identify the concept stated in the above lines.  
(b) Explain any three sources of the concept identified which are used by an Entrepreneur. 
 
6 
23 The School Go Ltd. Manufactures three products- Tiffin covers; Bottle covers; Pencil Pouch.  
Sale price per unit of each is ?  200, ? 100 and   ?75 respectively 
Variable cost per unit  of each is ? 100, ? 60 and ? 25 respectively 
The Total fixed expenses of the company are ? 55, 000 per month. 
For the coming month, it expects the sale of three products in the following proportions :  
Tiffin covers:20% 
Bottle covers: 50% 
Pencil Covers:30 % 
Compute break - even point of the company in units and rupees for the coming month. 
 
OR 
 
Raj Singh has started a restaurant on a National Highway in the name of 'Desi Dhaba' by spending 
? 25, 00,000. He invested   ? 10, 00,000 of his own and took a loan of ? 15, 00,000 from Dena 
Bank, @ 6% per annum. His monthly sales revenue is ? 17, 00,000 and cost of goods sold is ? 9, 
00,000. He pays monthly salary of ? 3, 00,000 to his employees. The tax rate is 25%. You are 
required to calculate :  
(a) Return on Investment and 
(b) Return on Equity for Raj Singh 
 
6 
24 Raghav after doing his B. Pharma degree from a reputed government college started two chemist 
shops in two different localities of his home town. Encouraged with the success of these shops, he 
started six more shops in different cities of the State. His strategy was to cut price, focus on lower 
and middle class patients and open shops near hospitals. He operated on very thin margins. But he 
was not able to maintain sufficient funds to meet the day to day expenses of the business. The staff 
of the shops did not give much attention to the customers and there was very poor system of 
control. Because of this mismanagement he started incurring huge losses and his business failed.  
Based on the above para identify and explain any six causes of business failure of Raghav. 
 
                                                                           OR 
 
6 
         It is about building good relations with the stakeholders of the business by obtaining favorable     
         publicity, building a good corporate image and handling or heading off unfavorable rumours,   
         stories and events. Identify the term and mention main tools used by an entrepreneur in this  
         regard. 
End of the Question Paper