Class 12 Entrepreneurship: CBSE Sample Question Papers (2024-25) | Entrepreneurship Class 12 - Commerce PDF Download

 Page 1


1 
 
ENTREPRENEURSHIP (066) 
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
TIME: 3 HOURS                                                                                 M.M. – 70 
GENERAL INSTRUCTIONS: 
(i) This question paper contains 34 questions. All questions are compulsory. 
(ii) The question paper is divided into four sections – Section A, B, C and D. 
(iii) In Section A: Questions number 1 to 18 are Multiple Choice Questions carrying 1 mark 
each. 
(iv) In Section B: Questions number 19 to 24 are Short Answer type-I questions carrying 2 
marks each. 
(v) In Section C: Questions number 25 to 29 are Short Answer type-II questions carrying 3 
marks each. 
(vi) In Section D: Questions number 30 to 34 are Long Answer type questions carrying 5 
marks each. 
(vii) There is no overall choice. However, an internal choice has been provided in Section B, C 
and D of question paper.  
Q.NO. QUESTIONS MARKS 
SECTION A 
1. “In a partnership form of business, each partner can bind the firm and other 
partners by his/her acts.” 
In the light of the given statement, identify the essential feature of partnership 
form of business organisation referred to and choose the correct option: 
A. implied authority 
B. utmost good faith 
C. mutual agency 
D. separate legal entity 
1 
2. Fraggy is a restaurant aggregator and food delivery company.   The customers 
can order food from listed food joints through the ‘Fraggy App’. It started when 
the founders noticed that people were unaware of the functional restaurants in 
their neighborhood and were searching for a variety of food options. The 
founders thought that it would be a great idea to list all the competing restaurants 
on the ‘Fraggy App’ and provide their menus as well. 
_______ is the source that led to the emergence of the business idea.  
                                                     (Choose the correct option to fill up the blank) 
A. Competition 
B. Change 
C. Problem 
D. Innovation 
1 
3. __________ is a sophisticated positive sales approach where the salespersons 
compare the features of their product without mentioning the competition.            
                                                     (Choose the correct option to fill up the blank) 
A. Direct sales strategy                     
B. Indirect sales strategy                          
1 
Page 2


1 
 
ENTREPRENEURSHIP (066) 
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
TIME: 3 HOURS                                                                                 M.M. – 70 
GENERAL INSTRUCTIONS: 
(i) This question paper contains 34 questions. All questions are compulsory. 
(ii) The question paper is divided into four sections – Section A, B, C and D. 
(iii) In Section A: Questions number 1 to 18 are Multiple Choice Questions carrying 1 mark 
each. 
(iv) In Section B: Questions number 19 to 24 are Short Answer type-I questions carrying 2 
marks each. 
(v) In Section C: Questions number 25 to 29 are Short Answer type-II questions carrying 3 
marks each. 
(vi) In Section D: Questions number 30 to 34 are Long Answer type questions carrying 5 
marks each. 
(vii) There is no overall choice. However, an internal choice has been provided in Section B, C 
and D of question paper.  
Q.NO. QUESTIONS MARKS 
SECTION A 
1. “In a partnership form of business, each partner can bind the firm and other 
partners by his/her acts.” 
In the light of the given statement, identify the essential feature of partnership 
form of business organisation referred to and choose the correct option: 
A. implied authority 
B. utmost good faith 
C. mutual agency 
D. separate legal entity 
1 
2. Fraggy is a restaurant aggregator and food delivery company.   The customers 
can order food from listed food joints through the ‘Fraggy App’. It started when 
the founders noticed that people were unaware of the functional restaurants in 
their neighborhood and were searching for a variety of food options. The 
founders thought that it would be a great idea to list all the competing restaurants 
on the ‘Fraggy App’ and provide their menus as well. 
_______ is the source that led to the emergence of the business idea.  
                                                     (Choose the correct option to fill up the blank) 
A. Competition 
B. Change 
C. Problem 
D. Innovation 
1 
3. __________ is a sophisticated positive sales approach where the salespersons 
compare the features of their product without mentioning the competition.            
                                                     (Choose the correct option to fill up the blank) 
A. Direct sales strategy                     
B. Indirect sales strategy                          
1 
2 
 
C. Comparative sales approach  
D. Customer testimonials 
4. Refer to the logo of the coffee brand Del Coffee carefully: 
 
 
 
 
 
 
 
 
in the given image represents: 
A. Brand Mark 
B. Brand Name 
C. Trade Mark 
D. Tagline 
 
For Visually Impaired Candidates: 
An entrepreneur is said to have used 'umbrella branding' when she ______  
A. opts to use a common or successful family name for her several products.   
B. chooses to utilize her corporate name or logo together with some brand 
names of individual products.  
C. uses alpha-numeric names to signify the physical characteristics of the 
product.  
D. chooses distinct names for each of her offerings. 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
5. Anita, a tech entrepreneur, wants to start her automation consultancy business 
that will develop AI-based customized solutions for different service providers. 
She cannot do it all by herself so she has approached her friend Supriya, who is 
an IIT graduate. Together they plan to commence the business in a form where 
their liability is limited and the business is regulated by law.  
_________ form of business organisation meets the requirements of Anita and 
Supriya.     (Choose the correct option to fill up the blank) 
A. Sole proprietor 
B. Partnership 
C. Private limited company 
D. Public limited company 
1 
6. Innovation involves translation of a useful idea into an application which has 
______.      (Choose the correct option to fill up the blank) 
A. utility  
B. commercial value 
C. creative solution 
D. better performance 
1 
7. From the given elements of operational plan in Column-I and the objectives 
given in Column-II, choose the correct pair: 
1 
 
Page 3


1 
 
ENTREPRENEURSHIP (066) 
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
TIME: 3 HOURS                                                                                 M.M. – 70 
GENERAL INSTRUCTIONS: 
(i) This question paper contains 34 questions. All questions are compulsory. 
(ii) The question paper is divided into four sections – Section A, B, C and D. 
(iii) In Section A: Questions number 1 to 18 are Multiple Choice Questions carrying 1 mark 
each. 
(iv) In Section B: Questions number 19 to 24 are Short Answer type-I questions carrying 2 
marks each. 
(v) In Section C: Questions number 25 to 29 are Short Answer type-II questions carrying 3 
marks each. 
(vi) In Section D: Questions number 30 to 34 are Long Answer type questions carrying 5 
marks each. 
(vii) There is no overall choice. However, an internal choice has been provided in Section B, C 
and D of question paper.  
Q.NO. QUESTIONS MARKS 
SECTION A 
1. “In a partnership form of business, each partner can bind the firm and other 
partners by his/her acts.” 
In the light of the given statement, identify the essential feature of partnership 
form of business organisation referred to and choose the correct option: 
A. implied authority 
B. utmost good faith 
C. mutual agency 
D. separate legal entity 
1 
2. Fraggy is a restaurant aggregator and food delivery company.   The customers 
can order food from listed food joints through the ‘Fraggy App’. It started when 
the founders noticed that people were unaware of the functional restaurants in 
their neighborhood and were searching for a variety of food options. The 
founders thought that it would be a great idea to list all the competing restaurants 
on the ‘Fraggy App’ and provide their menus as well. 
_______ is the source that led to the emergence of the business idea.  
                                                     (Choose the correct option to fill up the blank) 
A. Competition 
B. Change 
C. Problem 
D. Innovation 
1 
3. __________ is a sophisticated positive sales approach where the salespersons 
compare the features of their product without mentioning the competition.            
                                                     (Choose the correct option to fill up the blank) 
A. Direct sales strategy                     
B. Indirect sales strategy                          
1 
2 
 
C. Comparative sales approach  
D. Customer testimonials 
4. Refer to the logo of the coffee brand Del Coffee carefully: 
 
 
 
 
 
 
 
 
in the given image represents: 
A. Brand Mark 
B. Brand Name 
C. Trade Mark 
D. Tagline 
 
For Visually Impaired Candidates: 
An entrepreneur is said to have used 'umbrella branding' when she ______  
A. opts to use a common or successful family name for her several products.   
B. chooses to utilize her corporate name or logo together with some brand 
names of individual products.  
C. uses alpha-numeric names to signify the physical characteristics of the 
product.  
D. chooses distinct names for each of her offerings. 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
5. Anita, a tech entrepreneur, wants to start her automation consultancy business 
that will develop AI-based customized solutions for different service providers. 
She cannot do it all by herself so she has approached her friend Supriya, who is 
an IIT graduate. Together they plan to commence the business in a form where 
their liability is limited and the business is regulated by law.  
_________ form of business organisation meets the requirements of Anita and 
Supriya.     (Choose the correct option to fill up the blank) 
A. Sole proprietor 
B. Partnership 
C. Private limited company 
D. Public limited company 
1 
6. Innovation involves translation of a useful idea into an application which has 
______.      (Choose the correct option to fill up the blank) 
A. utility  
B. commercial value 
C. creative solution 
D. better performance 
1 
7. From the given elements of operational plan in Column-I and the objectives 
given in Column-II, choose the correct pair: 
1 
 
3 
 
Column I Column II 
(a) Routing i)     comparing materials, product or 
performance with established standards. 
(b) Dispatching ii)     determining exact path a product/ service 
has to follow right from raw material to finished 
good 
(c) Inspection iii)  initiating production as per the pre-conceived 
production plan. 
(d) Follow-up iv)     expediting function that relates to 
evaluation and appraisal of work performed  
Options: 
A. (a) – (i)    B.   (b) – (ii) 
C.   (c) – (iii)     D.  (d) – (iv) 
8. Nirmala dairy farms have been in the business of processing pure ghee using 
the ‘Bilona technique’. The cost per kilo of ghee comes out to be ? 2000. The 
owners have estimated that a reasonable profit margin will be 25%. So they have 
decided to sell the product at ? 2500 per kilo. 
On the basis of the given text, identify which of the following is the drawback of 
the indicated pricing strategy and choose the correct option: 
A. It attracts only the bargain hunters who switch to other brands if the price 
rises. 
B. Is not a viable option if there are strict legal and government regulations.  
C. It does not take into account the competitor's pricing and actions. 
D. It leads to a series of counteroffers that sometimes result in no sale.   
1 
9. Logo of a company ___________________ 
(i) is the key visual component of an enterprise's overall brand identity.  
(ii) provides essential information about the company through a set color 
combination, fonts, images, and impressions. 
(iii) is a memorable dramatic phrase that will sum up the product. 
(iv) can be a graphic mark or emblem used to promote instant public recognition. 
(Choose the correct option to fill up the blank) 
Options: 
A. (ii) and (iii) 
B. (i) and (v)  
C. (iii), (iv) and (v) 
D. (i), (ii) and (iv) 
1 
10. Identify, which of the following intellectual property is not patentable? 
(Choose the correct option) 
A. process of manufacturing 
B. machine used for manufacturing 
C. designs or patterns used for manufacturing 
D. substances used for manufacturing   
 
1 
Page 4


1 
 
ENTREPRENEURSHIP (066) 
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
TIME: 3 HOURS                                                                                 M.M. – 70 
GENERAL INSTRUCTIONS: 
(i) This question paper contains 34 questions. All questions are compulsory. 
(ii) The question paper is divided into four sections – Section A, B, C and D. 
(iii) In Section A: Questions number 1 to 18 are Multiple Choice Questions carrying 1 mark 
each. 
(iv) In Section B: Questions number 19 to 24 are Short Answer type-I questions carrying 2 
marks each. 
(v) In Section C: Questions number 25 to 29 are Short Answer type-II questions carrying 3 
marks each. 
(vi) In Section D: Questions number 30 to 34 are Long Answer type questions carrying 5 
marks each. 
(vii) There is no overall choice. However, an internal choice has been provided in Section B, C 
and D of question paper.  
Q.NO. QUESTIONS MARKS 
SECTION A 
1. “In a partnership form of business, each partner can bind the firm and other 
partners by his/her acts.” 
In the light of the given statement, identify the essential feature of partnership 
form of business organisation referred to and choose the correct option: 
A. implied authority 
B. utmost good faith 
C. mutual agency 
D. separate legal entity 
1 
2. Fraggy is a restaurant aggregator and food delivery company.   The customers 
can order food from listed food joints through the ‘Fraggy App’. It started when 
the founders noticed that people were unaware of the functional restaurants in 
their neighborhood and were searching for a variety of food options. The 
founders thought that it would be a great idea to list all the competing restaurants 
on the ‘Fraggy App’ and provide their menus as well. 
_______ is the source that led to the emergence of the business idea.  
                                                     (Choose the correct option to fill up the blank) 
A. Competition 
B. Change 
C. Problem 
D. Innovation 
1 
3. __________ is a sophisticated positive sales approach where the salespersons 
compare the features of their product without mentioning the competition.            
                                                     (Choose the correct option to fill up the blank) 
A. Direct sales strategy                     
B. Indirect sales strategy                          
1 
2 
 
C. Comparative sales approach  
D. Customer testimonials 
4. Refer to the logo of the coffee brand Del Coffee carefully: 
 
 
 
 
 
 
 
 
in the given image represents: 
A. Brand Mark 
B. Brand Name 
C. Trade Mark 
D. Tagline 
 
For Visually Impaired Candidates: 
An entrepreneur is said to have used 'umbrella branding' when she ______  
A. opts to use a common or successful family name for her several products.   
B. chooses to utilize her corporate name or logo together with some brand 
names of individual products.  
C. uses alpha-numeric names to signify the physical characteristics of the 
product.  
D. chooses distinct names for each of her offerings. 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
5. Anita, a tech entrepreneur, wants to start her automation consultancy business 
that will develop AI-based customized solutions for different service providers. 
She cannot do it all by herself so she has approached her friend Supriya, who is 
an IIT graduate. Together they plan to commence the business in a form where 
their liability is limited and the business is regulated by law.  
_________ form of business organisation meets the requirements of Anita and 
Supriya.     (Choose the correct option to fill up the blank) 
A. Sole proprietor 
B. Partnership 
C. Private limited company 
D. Public limited company 
1 
6. Innovation involves translation of a useful idea into an application which has 
______.      (Choose the correct option to fill up the blank) 
A. utility  
B. commercial value 
C. creative solution 
D. better performance 
1 
7. From the given elements of operational plan in Column-I and the objectives 
given in Column-II, choose the correct pair: 
1 
 
3 
 
Column I Column II 
(a) Routing i)     comparing materials, product or 
performance with established standards. 
(b) Dispatching ii)     determining exact path a product/ service 
has to follow right from raw material to finished 
good 
(c) Inspection iii)  initiating production as per the pre-conceived 
production plan. 
(d) Follow-up iv)     expediting function that relates to 
evaluation and appraisal of work performed  
Options: 
A. (a) – (i)    B.   (b) – (ii) 
C.   (c) – (iii)     D.  (d) – (iv) 
8. Nirmala dairy farms have been in the business of processing pure ghee using 
the ‘Bilona technique’. The cost per kilo of ghee comes out to be ? 2000. The 
owners have estimated that a reasonable profit margin will be 25%. So they have 
decided to sell the product at ? 2500 per kilo. 
On the basis of the given text, identify which of the following is the drawback of 
the indicated pricing strategy and choose the correct option: 
A. It attracts only the bargain hunters who switch to other brands if the price 
rises. 
B. Is not a viable option if there are strict legal and government regulations.  
C. It does not take into account the competitor's pricing and actions. 
D. It leads to a series of counteroffers that sometimes result in no sale.   
1 
9. Logo of a company ___________________ 
(i) is the key visual component of an enterprise's overall brand identity.  
(ii) provides essential information about the company through a set color 
combination, fonts, images, and impressions. 
(iii) is a memorable dramatic phrase that will sum up the product. 
(iv) can be a graphic mark or emblem used to promote instant public recognition. 
(Choose the correct option to fill up the blank) 
Options: 
A. (ii) and (iii) 
B. (i) and (v)  
C. (iii), (iv) and (v) 
D. (i), (ii) and (iv) 
1 
10. Identify, which of the following intellectual property is not patentable? 
(Choose the correct option) 
A. process of manufacturing 
B. machine used for manufacturing 
C. designs or patterns used for manufacturing 
D. substances used for manufacturing   
 
1 
4 
 
11. ___________is the ingredient of a franchise agreement which outlines the 
marketing and advertising procedures to be used by franchisee. 
(Choose the correct option to fill up the blank) 
A. Contract explanation 
B. Operations manual 
C. Ongoing site maintenance  
D. Proprietary statements 
1 
12. __________ element of the financial plan describes how the enterprise funds will 
be dedicated to different assets so that the enterprise can earn the highest 
possible return.   (Choose the correct option to fill up the blank) 
A. Investment decision 
B. Financing decision 
C. Income statements 
D. Cash flow statement 
1 
13. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct option from those given below: 
Assertion (A): New companies (start-ups) find it difficult to go public. 
Reason (R): A new company needs to maintain dividend and profit growth 
trends. 
Options: 
A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 
explanation of Assertion (A). 
B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the 
correct explanation of Assertion (A). 
C. Assertion (A) is true, but Reason (R) is false. 
      D. Assertion (A) is false, but Reason (R) is true. 
1 
14. Given below are assumptions that are made by an entrepreneur in the 
breakeven-point analysis for a multi-product business. 
(i) The proportion of the sales mix must be predetermined. 
(ii) The sales mix must change within the relevant period. 
(iii)  All costs can be categorized as variable or fixed. 
(iv)  Sales price per unit, variable cost per unit, and total fixed cost are 
calculated as per the forces of demand and supply. 
(v) All units produced are not sold. 
Choose the option that depicts the correct pair of assumptions: 
A. (i) and (iii) 
B. (ii) and (iii) 
C. (iv) and (v) 
D. (i) and (iv) 
1 
15. Identify, which of the following is not a current asset for a furniture manufacturing 
unit? 
A. debtors 
B. outstanding expenses  
C. stock of table and chairs 
D. short-term investment 
1 
Page 5


1 
 
ENTREPRENEURSHIP (066) 
CLASS XII (2024-25) 
SAMPLE QUESTION PAPER  
TIME: 3 HOURS                                                                                 M.M. – 70 
GENERAL INSTRUCTIONS: 
(i) This question paper contains 34 questions. All questions are compulsory. 
(ii) The question paper is divided into four sections – Section A, B, C and D. 
(iii) In Section A: Questions number 1 to 18 are Multiple Choice Questions carrying 1 mark 
each. 
(iv) In Section B: Questions number 19 to 24 are Short Answer type-I questions carrying 2 
marks each. 
(v) In Section C: Questions number 25 to 29 are Short Answer type-II questions carrying 3 
marks each. 
(vi) In Section D: Questions number 30 to 34 are Long Answer type questions carrying 5 
marks each. 
(vii) There is no overall choice. However, an internal choice has been provided in Section B, C 
and D of question paper.  
Q.NO. QUESTIONS MARKS 
SECTION A 
1. “In a partnership form of business, each partner can bind the firm and other 
partners by his/her acts.” 
In the light of the given statement, identify the essential feature of partnership 
form of business organisation referred to and choose the correct option: 
A. implied authority 
B. utmost good faith 
C. mutual agency 
D. separate legal entity 
1 
2. Fraggy is a restaurant aggregator and food delivery company.   The customers 
can order food from listed food joints through the ‘Fraggy App’. It started when 
the founders noticed that people were unaware of the functional restaurants in 
their neighborhood and were searching for a variety of food options. The 
founders thought that it would be a great idea to list all the competing restaurants 
on the ‘Fraggy App’ and provide their menus as well. 
_______ is the source that led to the emergence of the business idea.  
                                                     (Choose the correct option to fill up the blank) 
A. Competition 
B. Change 
C. Problem 
D. Innovation 
1 
3. __________ is a sophisticated positive sales approach where the salespersons 
compare the features of their product without mentioning the competition.            
                                                     (Choose the correct option to fill up the blank) 
A. Direct sales strategy                     
B. Indirect sales strategy                          
1 
2 
 
C. Comparative sales approach  
D. Customer testimonials 
4. Refer to the logo of the coffee brand Del Coffee carefully: 
 
 
 
 
 
 
 
 
in the given image represents: 
A. Brand Mark 
B. Brand Name 
C. Trade Mark 
D. Tagline 
 
For Visually Impaired Candidates: 
An entrepreneur is said to have used 'umbrella branding' when she ______  
A. opts to use a common or successful family name for her several products.   
B. chooses to utilize her corporate name or logo together with some brand 
names of individual products.  
C. uses alpha-numeric names to signify the physical characteristics of the 
product.  
D. chooses distinct names for each of her offerings. 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
5. Anita, a tech entrepreneur, wants to start her automation consultancy business 
that will develop AI-based customized solutions for different service providers. 
She cannot do it all by herself so she has approached her friend Supriya, who is 
an IIT graduate. Together they plan to commence the business in a form where 
their liability is limited and the business is regulated by law.  
_________ form of business organisation meets the requirements of Anita and 
Supriya.     (Choose the correct option to fill up the blank) 
A. Sole proprietor 
B. Partnership 
C. Private limited company 
D. Public limited company 
1 
6. Innovation involves translation of a useful idea into an application which has 
______.      (Choose the correct option to fill up the blank) 
A. utility  
B. commercial value 
C. creative solution 
D. better performance 
1 
7. From the given elements of operational plan in Column-I and the objectives 
given in Column-II, choose the correct pair: 
1 
 
3 
 
Column I Column II 
(a) Routing i)     comparing materials, product or 
performance with established standards. 
(b) Dispatching ii)     determining exact path a product/ service 
has to follow right from raw material to finished 
good 
(c) Inspection iii)  initiating production as per the pre-conceived 
production plan. 
(d) Follow-up iv)     expediting function that relates to 
evaluation and appraisal of work performed  
Options: 
A. (a) – (i)    B.   (b) – (ii) 
C.   (c) – (iii)     D.  (d) – (iv) 
8. Nirmala dairy farms have been in the business of processing pure ghee using 
the ‘Bilona technique’. The cost per kilo of ghee comes out to be ? 2000. The 
owners have estimated that a reasonable profit margin will be 25%. So they have 
decided to sell the product at ? 2500 per kilo. 
On the basis of the given text, identify which of the following is the drawback of 
the indicated pricing strategy and choose the correct option: 
A. It attracts only the bargain hunters who switch to other brands if the price 
rises. 
B. Is not a viable option if there are strict legal and government regulations.  
C. It does not take into account the competitor's pricing and actions. 
D. It leads to a series of counteroffers that sometimes result in no sale.   
1 
9. Logo of a company ___________________ 
(i) is the key visual component of an enterprise's overall brand identity.  
(ii) provides essential information about the company through a set color 
combination, fonts, images, and impressions. 
(iii) is a memorable dramatic phrase that will sum up the product. 
(iv) can be a graphic mark or emblem used to promote instant public recognition. 
(Choose the correct option to fill up the blank) 
Options: 
A. (ii) and (iii) 
B. (i) and (v)  
C. (iii), (iv) and (v) 
D. (i), (ii) and (iv) 
1 
10. Identify, which of the following intellectual property is not patentable? 
(Choose the correct option) 
A. process of manufacturing 
B. machine used for manufacturing 
C. designs or patterns used for manufacturing 
D. substances used for manufacturing   
 
1 
4 
 
11. ___________is the ingredient of a franchise agreement which outlines the 
marketing and advertising procedures to be used by franchisee. 
(Choose the correct option to fill up the blank) 
A. Contract explanation 
B. Operations manual 
C. Ongoing site maintenance  
D. Proprietary statements 
1 
12. __________ element of the financial plan describes how the enterprise funds will 
be dedicated to different assets so that the enterprise can earn the highest 
possible return.   (Choose the correct option to fill up the blank) 
A. Investment decision 
B. Financing decision 
C. Income statements 
D. Cash flow statement 
1 
13. Read the following statements: Assertion (A) and Reason (R). Choose the 
correct option from those given below: 
Assertion (A): New companies (start-ups) find it difficult to go public. 
Reason (R): A new company needs to maintain dividend and profit growth 
trends. 
Options: 
A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 
explanation of Assertion (A). 
B. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the 
correct explanation of Assertion (A). 
C. Assertion (A) is true, but Reason (R) is false. 
      D. Assertion (A) is false, but Reason (R) is true. 
1 
14. Given below are assumptions that are made by an entrepreneur in the 
breakeven-point analysis for a multi-product business. 
(i) The proportion of the sales mix must be predetermined. 
(ii) The sales mix must change within the relevant period. 
(iii)  All costs can be categorized as variable or fixed. 
(iv)  Sales price per unit, variable cost per unit, and total fixed cost are 
calculated as per the forces of demand and supply. 
(v) All units produced are not sold. 
Choose the option that depicts the correct pair of assumptions: 
A. (i) and (iii) 
B. (ii) and (iii) 
C. (iv) and (v) 
D. (i) and (iv) 
1 
15. Identify, which of the following is not a current asset for a furniture manufacturing 
unit? 
A. debtors 
B. outstanding expenses  
C. stock of table and chairs 
D. short-term investment 
1 
5 
 
16. Identify, which of the following is an advantage of issuing shares through ‘Rights 
issue.’ 
A. It is an inexpensive method of issuing shares. 
B. It leads to higher employee motivation and lower labor turnover. 
C. It results in higher valuations of companies and better prestige. 
D. This method helps in maintaining confidentiality 
1 
17. In ___________ acquisition, the purchasing company becomes a subsidiary of 
the purchased company. 
      A. friendly       B. reverse   
C. backflip       D. hostile   
1 
18. Suvidha Store is a grocery store that retails fast-moving consumer goods. The 
store buys its supplies on credit and sells them on cash basis. With growing 
competition, it has also started selling goods on credit.  
The above step taken by Suvidha store may lead to  _______ in its working 
capital requirement and its cash conversion cycle will be __________. 
     A. increase, longer    B. decrease, longer 
     C. no change, longer    D. increase, shorter 
1 
SECTION B 
19(A) 
 
 
19(B) 
Explain ‘product identification’ as the first step in idea and opportunity 
assessment. 
OR 
Differentiate between a basic idea and post scanning idea. 
2 
 
 
2 
20. Read the following text carefully: 
Rohit is a trained plumber and has worked for a hardware shop for more than 3 
years. He is very popular in the area and people generally request his employer 
to send Rohit for their repair and maintenance tasks. 
Rohit is planning to start a business of his own where he will directly reach his 
clients upon a phone call. He will provide services instantaneously within 15 
minutes of the request received. His present clients may put in a positive word 
for him among their friends and neighbors which can help his business grow.   
On the basis of the given text identify, giving reasons, any two elements of 
business opportunity. 
2 
21. 
(A) 
 
 
 
 
 
 
 
 
 
 
Refer to the images given below:   
(i) (ii)