Class 12 Entrepreneurship Previous Year Paper - 6 | Entrepreneurship Class 12 - Commerce PDF Download

 Page 1


Page 1 of 4 
 
                     
Roll Number                         SET B 
General Instructions: 
 
All questions are compulsory. 
Internal choice is given in selected questions 
There is no word limit for numerical questions. 
Questions 1 to 5 carrying 1 mark each. Answers to these questions should be from one word to one sentence. 
Questions 6 to 10 carrying 2 marks each. Answers to these questions should be in 50 to 75 words. 
Questions 11 to 17 carrying 3 marks each. Answers to these questions should be in about 100 words. 
Questions 18 to 21 carrying 4 marks each. Answers to these questions should be in about 150 words. 
Questions 22 to 24 carrying 6 marks each. Answers to these questions should be in about 200 words. 
 
 
1 Rahul wants to start a small shoe manufacturing factory.  As a part of his business plan he 
prepared an entertaining slide show and oral narrative that was meant to trigger discussion and 
create interest in potential investors for reading the written presentation. 
Identify the format of business plan described in the above statement. 
 
1 
2 What is Franchising? 
 
1 
3 Name the two different forms of budgeting. 
OR 
Mohit is the sales manager of his company. The company is planning its annual operations and 
has asked Mohit to prepare the relevant budget for his department. Which budget is Mohit 
required to prepare? 
 
1 
4 Vishal was working with Abhinav, a new entrepreneur, as a Production Manager. For smooth and 
coordinated flow of work he had to pay attention towards various elements. To ensure 
predetermined quality of products he had to compare the performance with established standards. 
Identify and state the element being discussed above which is related to one of the components of 
a ‘Business Plan’. 
 
1 
5 Differentiate between Brand Mark and Trade Mark 
                                        OR 
 
Why is logo important for a company? 
 
1 
 
 
FINAL EXAMINATION  
 
 
SUBJECT : ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs. 
 
 Max.Marks: 70 
Page 2


Page 1 of 4 
 
                     
Roll Number                         SET B 
General Instructions: 
 
All questions are compulsory. 
Internal choice is given in selected questions 
There is no word limit for numerical questions. 
Questions 1 to 5 carrying 1 mark each. Answers to these questions should be from one word to one sentence. 
Questions 6 to 10 carrying 2 marks each. Answers to these questions should be in 50 to 75 words. 
Questions 11 to 17 carrying 3 marks each. Answers to these questions should be in about 100 words. 
Questions 18 to 21 carrying 4 marks each. Answers to these questions should be in about 150 words. 
Questions 22 to 24 carrying 6 marks each. Answers to these questions should be in about 200 words. 
 
 
1 Rahul wants to start a small shoe manufacturing factory.  As a part of his business plan he 
prepared an entertaining slide show and oral narrative that was meant to trigger discussion and 
create interest in potential investors for reading the written presentation. 
Identify the format of business plan described in the above statement. 
 
1 
2 What is Franchising? 
 
1 
3 Name the two different forms of budgeting. 
OR 
Mohit is the sales manager of his company. The company is planning its annual operations and 
has asked Mohit to prepare the relevant budget for his department. Which budget is Mohit 
required to prepare? 
 
1 
4 Vishal was working with Abhinav, a new entrepreneur, as a Production Manager. For smooth and 
coordinated flow of work he had to pay attention towards various elements. To ensure 
predetermined quality of products he had to compare the performance with established standards. 
Identify and state the element being discussed above which is related to one of the components of 
a ‘Business Plan’. 
 
1 
5 Differentiate between Brand Mark and Trade Mark 
                                        OR 
 
Why is logo important for a company? 
 
1 
 
 
FINAL EXAMINATION  
 
 
SUBJECT : ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs. 
 
 Max.Marks: 70 
Page 2 of 4 
 
 
 
6 
 
 
Explain the types of acquisition. 
 
 
 
2 
7 Sun cars Ltd’ is a manufacturer of cars. It is famous for adding new and unique features in every 
new model. This time the company launched a car ‘Solaro’ which does not require hydro-carbon 
fuel. It is run by solar energy and takes less time in charging. Besides saving fuel, it saves 
electricity also. Because of these qualities, the car was a big hit in the market. 
Quoting the lines from the above para, identify and explain the two types of ‘added value’ in the 
business growth strategy 
OR 
Business adds values to goods and services by modifying them in a particular way to create a new 
product for greater value to customers. Comment on the concept of value addition from financial 
and marketing perspective. 
 
2 
8 Aditya wants to start a business of selling books – text books, novels, guides etc. by opening a 
book store as well as online, by creating a website www.adityabooks.com. By taking loan from 
bank and investing his savings, he opened the store in one of the complex in the city. Though, sole 
proprietorship does not need registration but Aditya has to undergo some legal formalities. Write 
down any two of such formalities which Aditya has to comply to start a sole proprietorship 
 
2 
9 Gauri started her business of manufacturing designer furniture in Lonavala. Her business was a 
huge success and she thought of starting a designer studio involving huge capital in Mumbai as 
well as in Pune. Her friends wanted to join hands with her and open the same. They approached a 
chartered accountant and he suggested them to form a private company as according to him this 
form of company is more desirable. 
State the privileges of a private company that make it a more desirable than a public company. 
 
OR 
Raghav had a very good hand at cooking and everyone appreciated his culinary skills. Therefore, 
he did his graduation in Hotel Management. He got an offer from Hyatt and got placed there. 
(i) Which economic activity is presented in this case? Explain. 
(ii) Name other two types of economic activities. 
 
2 
10 Ankur, an entrepreneur introduced a new shampoo which will help in reducing hair fall. In spite of 
heavy advertisement and publicity he is not able to boost the sales. Suggest any four techniques to 
Ankur that will help him in boosting the sales. 
 
2 
11 ‘Employee Relationship Management is a process that a company uses to effectively manage 
interactions with employees to achieve the goals of the organization’. In the light of the statement 
explain any three factors that lead to effective employee relationship.  
 
3 
12 State the advantages of cost-plus method of pricing. 
 
OR 
An entrepreneur launches a new product in the market with high prices. Identify the type of 
pricing and give any two disadvantages 
 
 
 
3 
Page 3


Page 1 of 4 
 
                     
Roll Number                         SET B 
General Instructions: 
 
All questions are compulsory. 
Internal choice is given in selected questions 
There is no word limit for numerical questions. 
Questions 1 to 5 carrying 1 mark each. Answers to these questions should be from one word to one sentence. 
Questions 6 to 10 carrying 2 marks each. Answers to these questions should be in 50 to 75 words. 
Questions 11 to 17 carrying 3 marks each. Answers to these questions should be in about 100 words. 
Questions 18 to 21 carrying 4 marks each. Answers to these questions should be in about 150 words. 
Questions 22 to 24 carrying 6 marks each. Answers to these questions should be in about 200 words. 
 
 
1 Rahul wants to start a small shoe manufacturing factory.  As a part of his business plan he 
prepared an entertaining slide show and oral narrative that was meant to trigger discussion and 
create interest in potential investors for reading the written presentation. 
Identify the format of business plan described in the above statement. 
 
1 
2 What is Franchising? 
 
1 
3 Name the two different forms of budgeting. 
OR 
Mohit is the sales manager of his company. The company is planning its annual operations and 
has asked Mohit to prepare the relevant budget for his department. Which budget is Mohit 
required to prepare? 
 
1 
4 Vishal was working with Abhinav, a new entrepreneur, as a Production Manager. For smooth and 
coordinated flow of work he had to pay attention towards various elements. To ensure 
predetermined quality of products he had to compare the performance with established standards. 
Identify and state the element being discussed above which is related to one of the components of 
a ‘Business Plan’. 
 
1 
5 Differentiate between Brand Mark and Trade Mark 
                                        OR 
 
Why is logo important for a company? 
 
1 
 
 
FINAL EXAMINATION  
 
 
SUBJECT : ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs. 
 
 Max.Marks: 70 
Page 2 of 4 
 
 
 
6 
 
 
Explain the types of acquisition. 
 
 
 
2 
7 Sun cars Ltd’ is a manufacturer of cars. It is famous for adding new and unique features in every 
new model. This time the company launched a car ‘Solaro’ which does not require hydro-carbon 
fuel. It is run by solar energy and takes less time in charging. Besides saving fuel, it saves 
electricity also. Because of these qualities, the car was a big hit in the market. 
Quoting the lines from the above para, identify and explain the two types of ‘added value’ in the 
business growth strategy 
OR 
Business adds values to goods and services by modifying them in a particular way to create a new 
product for greater value to customers. Comment on the concept of value addition from financial 
and marketing perspective. 
 
2 
8 Aditya wants to start a business of selling books – text books, novels, guides etc. by opening a 
book store as well as online, by creating a website www.adityabooks.com. By taking loan from 
bank and investing his savings, he opened the store in one of the complex in the city. Though, sole 
proprietorship does not need registration but Aditya has to undergo some legal formalities. Write 
down any two of such formalities which Aditya has to comply to start a sole proprietorship 
 
2 
9 Gauri started her business of manufacturing designer furniture in Lonavala. Her business was a 
huge success and she thought of starting a designer studio involving huge capital in Mumbai as 
well as in Pune. Her friends wanted to join hands with her and open the same. They approached a 
chartered accountant and he suggested them to form a private company as according to him this 
form of company is more desirable. 
State the privileges of a private company that make it a more desirable than a public company. 
 
OR 
Raghav had a very good hand at cooking and everyone appreciated his culinary skills. Therefore, 
he did his graduation in Hotel Management. He got an offer from Hyatt and got placed there. 
(i) Which economic activity is presented in this case? Explain. 
(ii) Name other two types of economic activities. 
 
2 
10 Ankur, an entrepreneur introduced a new shampoo which will help in reducing hair fall. In spite of 
heavy advertisement and publicity he is not able to boost the sales. Suggest any four techniques to 
Ankur that will help him in boosting the sales. 
 
2 
11 ‘Employee Relationship Management is a process that a company uses to effectively manage 
interactions with employees to achieve the goals of the organization’. In the light of the statement 
explain any three factors that lead to effective employee relationship.  
 
3 
12 State the advantages of cost-plus method of pricing. 
 
OR 
An entrepreneur launches a new product in the market with high prices. Identify the type of 
pricing and give any two disadvantages 
 
 
 
3 
Page 3 of 4 
 
13 A factory is engaged in manufacturing coolers. The following information is available to you: 
Sales                                                                  =Rs.2,50,000 
Direct Labour Cost(for 100 units)                    = Rs.25,000 
Direct Material cost(for 100 units)                    =Rs.62,500 
Direct Expenses(for 100units)                           =Rs.12,500 
Fixed cost                                                          =Rs.75,000 
 
Calculate: (a) Variable cost per unit 
                  (b) Total Cost 
                  (c)  Quantity to be sold at Break-even Point 
 
3 
14 What is Synergy? In what forms it can take place? 
 
3 
15 A stationery shop sells 25,000 copies per year. The cost price of the copy is Rs.20 per copy and 
carrying cost is 20% of the cost price. Cost of placing an order is Rs.20. Calculate the EOQ for 
copies for the stationery shop.  
 
3 
16 Explain any three features of a Co-operative Organization. 3 
17 Explain any three factors that influence the decisions with regard to order of inventory.  
 
3 
18 Briefly explain the ‘support activities’ of value chain concept. 
 
4 
19 Vipul did his agriculture diploma and started organic farming. Looking at the great scope for 
healthy options in fruits and vegetables because of people becoming diet and health conscious, he 
decided to open salad bars and organic fruit juice corner in malls. Now he needed a road map for 
him to start the venture. 
(i) Identify the term used for ‘road-map’ by Vipul 
(ii) Why is this road map required? 
 
4 
20 Explain the methods of negotiation? 
 
                       OR 
Explain in brief the factors which are responsible for 90% of the business failures. 
 
4 
21 What do you mean by financial management? What are the main objectives of financial 
management? 
 
4 
22 What do you mean by channels of distribution? What consideration related to market should be 
taken into account while selecting the channel of distribution 
 
6 
23 ABC Company, manufacturing shoes, has taken over XYZ company which also manufactures 
shoes at a small scale .What do you think will be the reason for this kind of takeover? Also explain 
the types of mergers. 
OR 
Mergers and acquisitions are inspired by a desire to diversify or achieve higher growth rate. What 
are the other reasons for merger and acquisitions? 
 
 
 
6 
Page 4


Page 1 of 4 
 
                     
Roll Number                         SET B 
General Instructions: 
 
All questions are compulsory. 
Internal choice is given in selected questions 
There is no word limit for numerical questions. 
Questions 1 to 5 carrying 1 mark each. Answers to these questions should be from one word to one sentence. 
Questions 6 to 10 carrying 2 marks each. Answers to these questions should be in 50 to 75 words. 
Questions 11 to 17 carrying 3 marks each. Answers to these questions should be in about 100 words. 
Questions 18 to 21 carrying 4 marks each. Answers to these questions should be in about 150 words. 
Questions 22 to 24 carrying 6 marks each. Answers to these questions should be in about 200 words. 
 
 
1 Rahul wants to start a small shoe manufacturing factory.  As a part of his business plan he 
prepared an entertaining slide show and oral narrative that was meant to trigger discussion and 
create interest in potential investors for reading the written presentation. 
Identify the format of business plan described in the above statement. 
 
1 
2 What is Franchising? 
 
1 
3 Name the two different forms of budgeting. 
OR 
Mohit is the sales manager of his company. The company is planning its annual operations and 
has asked Mohit to prepare the relevant budget for his department. Which budget is Mohit 
required to prepare? 
 
1 
4 Vishal was working with Abhinav, a new entrepreneur, as a Production Manager. For smooth and 
coordinated flow of work he had to pay attention towards various elements. To ensure 
predetermined quality of products he had to compare the performance with established standards. 
Identify and state the element being discussed above which is related to one of the components of 
a ‘Business Plan’. 
 
1 
5 Differentiate between Brand Mark and Trade Mark 
                                        OR 
 
Why is logo important for a company? 
 
1 
 
 
FINAL EXAMINATION  
 
 
SUBJECT : ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs. 
 
 Max.Marks: 70 
Page 2 of 4 
 
 
 
6 
 
 
Explain the types of acquisition. 
 
 
 
2 
7 Sun cars Ltd’ is a manufacturer of cars. It is famous for adding new and unique features in every 
new model. This time the company launched a car ‘Solaro’ which does not require hydro-carbon 
fuel. It is run by solar energy and takes less time in charging. Besides saving fuel, it saves 
electricity also. Because of these qualities, the car was a big hit in the market. 
Quoting the lines from the above para, identify and explain the two types of ‘added value’ in the 
business growth strategy 
OR 
Business adds values to goods and services by modifying them in a particular way to create a new 
product for greater value to customers. Comment on the concept of value addition from financial 
and marketing perspective. 
 
2 
8 Aditya wants to start a business of selling books – text books, novels, guides etc. by opening a 
book store as well as online, by creating a website www.adityabooks.com. By taking loan from 
bank and investing his savings, he opened the store in one of the complex in the city. Though, sole 
proprietorship does not need registration but Aditya has to undergo some legal formalities. Write 
down any two of such formalities which Aditya has to comply to start a sole proprietorship 
 
2 
9 Gauri started her business of manufacturing designer furniture in Lonavala. Her business was a 
huge success and she thought of starting a designer studio involving huge capital in Mumbai as 
well as in Pune. Her friends wanted to join hands with her and open the same. They approached a 
chartered accountant and he suggested them to form a private company as according to him this 
form of company is more desirable. 
State the privileges of a private company that make it a more desirable than a public company. 
 
OR 
Raghav had a very good hand at cooking and everyone appreciated his culinary skills. Therefore, 
he did his graduation in Hotel Management. He got an offer from Hyatt and got placed there. 
(i) Which economic activity is presented in this case? Explain. 
(ii) Name other two types of economic activities. 
 
2 
10 Ankur, an entrepreneur introduced a new shampoo which will help in reducing hair fall. In spite of 
heavy advertisement and publicity he is not able to boost the sales. Suggest any four techniques to 
Ankur that will help him in boosting the sales. 
 
2 
11 ‘Employee Relationship Management is a process that a company uses to effectively manage 
interactions with employees to achieve the goals of the organization’. In the light of the statement 
explain any three factors that lead to effective employee relationship.  
 
3 
12 State the advantages of cost-plus method of pricing. 
 
OR 
An entrepreneur launches a new product in the market with high prices. Identify the type of 
pricing and give any two disadvantages 
 
 
 
3 
Page 3 of 4 
 
13 A factory is engaged in manufacturing coolers. The following information is available to you: 
Sales                                                                  =Rs.2,50,000 
Direct Labour Cost(for 100 units)                    = Rs.25,000 
Direct Material cost(for 100 units)                    =Rs.62,500 
Direct Expenses(for 100units)                           =Rs.12,500 
Fixed cost                                                          =Rs.75,000 
 
Calculate: (a) Variable cost per unit 
                  (b) Total Cost 
                  (c)  Quantity to be sold at Break-even Point 
 
3 
14 What is Synergy? In what forms it can take place? 
 
3 
15 A stationery shop sells 25,000 copies per year. The cost price of the copy is Rs.20 per copy and 
carrying cost is 20% of the cost price. Cost of placing an order is Rs.20. Calculate the EOQ for 
copies for the stationery shop.  
 
3 
16 Explain any three features of a Co-operative Organization. 3 
17 Explain any three factors that influence the decisions with regard to order of inventory.  
 
3 
18 Briefly explain the ‘support activities’ of value chain concept. 
 
4 
19 Vipul did his agriculture diploma and started organic farming. Looking at the great scope for 
healthy options in fruits and vegetables because of people becoming diet and health conscious, he 
decided to open salad bars and organic fruit juice corner in malls. Now he needed a road map for 
him to start the venture. 
(i) Identify the term used for ‘road-map’ by Vipul 
(ii) Why is this road map required? 
 
4 
20 Explain the methods of negotiation? 
 
                       OR 
Explain in brief the factors which are responsible for 90% of the business failures. 
 
4 
21 What do you mean by financial management? What are the main objectives of financial 
management? 
 
4 
22 What do you mean by channels of distribution? What consideration related to market should be 
taken into account while selecting the channel of distribution 
 
6 
23 ABC Company, manufacturing shoes, has taken over XYZ company which also manufactures 
shoes at a small scale .What do you think will be the reason for this kind of takeover? Also explain 
the types of mergers. 
OR 
Mergers and acquisitions are inspired by a desire to diversify or achieve higher growth rate. What 
are the other reasons for merger and acquisitions? 
 
 
 
6 
Page 4 of 4 
 
24 Raj Singh has started a restaurant on a National highway in the name of ‘Desi Dhaba’ by spending 
Rs.25, 00,000. He invested Rs.10, 00,000 of his own and took a loan of Rs.15, 00,000 from Dena 
Bank @6% per annum. His monthly sales revenue is Rs.17, 00,000 and cost of goods sold is Rs.9, 
00,000. He pays monthly salary of Rs.3, 00,000 to his employees. The tax rate is 25%. Calculate 
(a) Return on Investment and (b) Return on Equity. 
 
 
 
6 
 End of the Question Paper  
 
Page 5


Page 1 of 4 
 
                     
Roll Number                         SET B 
General Instructions: 
 
All questions are compulsory. 
Internal choice is given in selected questions 
There is no word limit for numerical questions. 
Questions 1 to 5 carrying 1 mark each. Answers to these questions should be from one word to one sentence. 
Questions 6 to 10 carrying 2 marks each. Answers to these questions should be in 50 to 75 words. 
Questions 11 to 17 carrying 3 marks each. Answers to these questions should be in about 100 words. 
Questions 18 to 21 carrying 4 marks each. Answers to these questions should be in about 150 words. 
Questions 22 to 24 carrying 6 marks each. Answers to these questions should be in about 200 words. 
 
 
1 Rahul wants to start a small shoe manufacturing factory.  As a part of his business plan he 
prepared an entertaining slide show and oral narrative that was meant to trigger discussion and 
create interest in potential investors for reading the written presentation. 
Identify the format of business plan described in the above statement. 
 
1 
2 What is Franchising? 
 
1 
3 Name the two different forms of budgeting. 
OR 
Mohit is the sales manager of his company. The company is planning its annual operations and 
has asked Mohit to prepare the relevant budget for his department. Which budget is Mohit 
required to prepare? 
 
1 
4 Vishal was working with Abhinav, a new entrepreneur, as a Production Manager. For smooth and 
coordinated flow of work he had to pay attention towards various elements. To ensure 
predetermined quality of products he had to compare the performance with established standards. 
Identify and state the element being discussed above which is related to one of the components of 
a ‘Business Plan’. 
 
1 
5 Differentiate between Brand Mark and Trade Mark 
                                        OR 
 
Why is logo important for a company? 
 
1 
 
 
FINAL EXAMINATION  
 
 
SUBJECT : ENTREPRENEURSHIP 
 
CLASS: XII Time Allotted: 3 Hrs. 
 
 Max.Marks: 70 
Page 2 of 4 
 
 
 
6 
 
 
Explain the types of acquisition. 
 
 
 
2 
7 Sun cars Ltd’ is a manufacturer of cars. It is famous for adding new and unique features in every 
new model. This time the company launched a car ‘Solaro’ which does not require hydro-carbon 
fuel. It is run by solar energy and takes less time in charging. Besides saving fuel, it saves 
electricity also. Because of these qualities, the car was a big hit in the market. 
Quoting the lines from the above para, identify and explain the two types of ‘added value’ in the 
business growth strategy 
OR 
Business adds values to goods and services by modifying them in a particular way to create a new 
product for greater value to customers. Comment on the concept of value addition from financial 
and marketing perspective. 
 
2 
8 Aditya wants to start a business of selling books – text books, novels, guides etc. by opening a 
book store as well as online, by creating a website www.adityabooks.com. By taking loan from 
bank and investing his savings, he opened the store in one of the complex in the city. Though, sole 
proprietorship does not need registration but Aditya has to undergo some legal formalities. Write 
down any two of such formalities which Aditya has to comply to start a sole proprietorship 
 
2 
9 Gauri started her business of manufacturing designer furniture in Lonavala. Her business was a 
huge success and she thought of starting a designer studio involving huge capital in Mumbai as 
well as in Pune. Her friends wanted to join hands with her and open the same. They approached a 
chartered accountant and he suggested them to form a private company as according to him this 
form of company is more desirable. 
State the privileges of a private company that make it a more desirable than a public company. 
 
OR 
Raghav had a very good hand at cooking and everyone appreciated his culinary skills. Therefore, 
he did his graduation in Hotel Management. He got an offer from Hyatt and got placed there. 
(i) Which economic activity is presented in this case? Explain. 
(ii) Name other two types of economic activities. 
 
2 
10 Ankur, an entrepreneur introduced a new shampoo which will help in reducing hair fall. In spite of 
heavy advertisement and publicity he is not able to boost the sales. Suggest any four techniques to 
Ankur that will help him in boosting the sales. 
 
2 
11 ‘Employee Relationship Management is a process that a company uses to effectively manage 
interactions with employees to achieve the goals of the organization’. In the light of the statement 
explain any three factors that lead to effective employee relationship.  
 
3 
12 State the advantages of cost-plus method of pricing. 
 
OR 
An entrepreneur launches a new product in the market with high prices. Identify the type of 
pricing and give any two disadvantages 
 
 
 
3 
Page 3 of 4 
 
13 A factory is engaged in manufacturing coolers. The following information is available to you: 
Sales                                                                  =Rs.2,50,000 
Direct Labour Cost(for 100 units)                    = Rs.25,000 
Direct Material cost(for 100 units)                    =Rs.62,500 
Direct Expenses(for 100units)                           =Rs.12,500 
Fixed cost                                                          =Rs.75,000 
 
Calculate: (a) Variable cost per unit 
                  (b) Total Cost 
                  (c)  Quantity to be sold at Break-even Point 
 
3 
14 What is Synergy? In what forms it can take place? 
 
3 
15 A stationery shop sells 25,000 copies per year. The cost price of the copy is Rs.20 per copy and 
carrying cost is 20% of the cost price. Cost of placing an order is Rs.20. Calculate the EOQ for 
copies for the stationery shop.  
 
3 
16 Explain any three features of a Co-operative Organization. 3 
17 Explain any three factors that influence the decisions with regard to order of inventory.  
 
3 
18 Briefly explain the ‘support activities’ of value chain concept. 
 
4 
19 Vipul did his agriculture diploma and started organic farming. Looking at the great scope for 
healthy options in fruits and vegetables because of people becoming diet and health conscious, he 
decided to open salad bars and organic fruit juice corner in malls. Now he needed a road map for 
him to start the venture. 
(i) Identify the term used for ‘road-map’ by Vipul 
(ii) Why is this road map required? 
 
4 
20 Explain the methods of negotiation? 
 
                       OR 
Explain in brief the factors which are responsible for 90% of the business failures. 
 
4 
21 What do you mean by financial management? What are the main objectives of financial 
management? 
 
4 
22 What do you mean by channels of distribution? What consideration related to market should be 
taken into account while selecting the channel of distribution 
 
6 
23 ABC Company, manufacturing shoes, has taken over XYZ company which also manufactures 
shoes at a small scale .What do you think will be the reason for this kind of takeover? Also explain 
the types of mergers. 
OR 
Mergers and acquisitions are inspired by a desire to diversify or achieve higher growth rate. What 
are the other reasons for merger and acquisitions? 
 
 
 
6 
Page 4 of 4 
 
24 Raj Singh has started a restaurant on a National highway in the name of ‘Desi Dhaba’ by spending 
Rs.25, 00,000. He invested Rs.10, 00,000 of his own and took a loan of Rs.15, 00,000 from Dena 
Bank @6% per annum. His monthly sales revenue is Rs.17, 00,000 and cost of goods sold is Rs.9, 
00,000. He pays monthly salary of Rs.3, 00,000 to his employees. The tax rate is 25%. Calculate 
(a) Return on Investment and (b) Return on Equity. 
 
 
 
6 
 End of the Question Paper  
 
FINAL TERM EXAMINATION 
CLASS XII 
Marking Scheme – ENTREPRENEURSHIP [THEORY] 
 
Q.NO
. 
Answers 
Marks 
(with 
split up) 
1 Pitch deck with oral narrative. 
 
1 
2 An agreement whereby the manufacturer or sole distributor of a trademarked product or 
service gives exclusive rights of local distribution to independent retailers in return for their 
payment of royalties and conformance to standardized operating procedures. 
 
1 
3 Traditional budgeting (ii) zero based budgeting Excess of Unit price over  
                                        OR 
Mohit is required to prepare the Sales Budget.(1) 
 
½ + ½ 
 
 
4 Operational Plan. 
 
1 
5 
 
 
 
 
 
 
 
 
Brand Mark Trade Mark 
A brand mark is that part of a brand which 
can be recognized but cannot be vocalized 
i.e. non-utterable. It appears in the form of a 
symbol, design or distinct colour scheme.  
A brand or part of a brand that is given legal 
protection against its use by other firms is 
called a trade mark. It is a legal term, 
protecting the seller’s exclusive right to use 
the brand name/mark. 
OR 
Logo is important for a company as it provides an identifying symbol for a product or 
business by anchoring company’s brand. 
 
 
½ + ½ 
 
 
6 (a) Friendly acquisition: Both the companies approve of the acquisition under friendly 
terms.  
(b) Reverse acquisition: A private company takes over a public company. 
(c) Back flip acquisition: the purchasing company becomes subsidiary of the purchased 
company. 
(d) Hostile acquisition: The entire process is based on force. The smaller company says 
yes to the bigger company just buys off all its shares. 
                                                         
½  each 
 
7 (i) Quality Added Value: It is basically adding convenience, ease of use or other 
desirable characteristics that customer value. 
(ii) Environmental Added Value: It employs methods or system that does not harm the 
environment or are less harmful than those commonly used. Example: using less 
electricity and using less fuel. 
                                                                       OR 
 
1+1 
SET B