[HOTS] - Entrepreneurial Planning, Entrepreneurship, Class 12 | Additional Study Material for Commerce PDF Download

Q1. Sandeep had started his business of dairy products in 2013. He wanted to expand his business but did not have the necessary funds. One of his friends suggested that he should approach Mr. Goel, a venture capitalist for futher funds. When sandeep approached Mr. Goel, he was given three minutes for explaining his business proposition. Identify and explain the format of business plan referred to in the above para. (SQP) (2 marks)
Ans. Elevator Pitch : It is a three minute summary of the business plan’s executive summary. This is often used as a teaser to awaken the interest of potential funders, customers or strategic partners.

Q2. Vikram, a new generation high tech farmer is involved in organic farming. He realized that there was a huge market for his fruits and vegetables as people have become deit conscious and prefer to eat healthy food. Keeping this in mind, he decided to open salad bars and organic fruit juice corners in prominent malls in Delhi. Now he need a “road map” for himself to start the venture.
(i) Identify the term used for “road map” by Vikram.
(ii) Why this road map is required ? (2 marks)
Ans.
(i) Business Plan.
(ii) Importance of business plan : Business plan is valuable to entrepreneurs, potential investors, venture capitalist, banks, financial institutions, new personnel like-suppliers, customers, advisors, and others who are trying to familiarize themselves with the venture, its goals and objectives.

Q3. What type of organization structure and organization may have ? (1 mark)
Ans. An organization may have :
(i) Functional structure.
(ii) Divisional structure.

Q4. If a person wants to know the frame work of functional and operational activities of an organization, which plan he must review ? (1 mark)
Ans. He must review operational and production plan.

Q5. Name the plan which provides strategy to sell the products. (1 mark)
Ans. Marketing plan.

Value Based Questions:
Q1. Rajeshwari an entrepreneur, wants to start an industry for groundnut oil in Kathiawar (Gujrat), where less employment opportunities are available. She wants to fix a very low and reasonable price for this as compared to her competitor. She investigated that other oil factories are either making soya oil or sunflower oil which is not in much demand by the consumers of this area as they cannot afford to buy these oils. For this she prepares a comprehensive business plan that encompasses the entire range of activities being planned in the business.
(i) Identify the plan and explain why this is needed by an entrepreneur. (ii) State any two values which Rajeshwari wants to communicate to the society by setting up this oil unit. (CBSE, 2013) (4 marks)
Ans.
(i) Business Plan : A business plan provides clarity in all the areas. It explains clearly what the entrepreneur is doing, why he is doing and how he will do it. Such a plan helps the entrepreneur to select right technology and resources.
(ii) Two values communicated by Rajeshwari are welfare of the society and consumer benefit.

Q2. You are an entrepreneur who is deciding the operational plan for your business. While deciding the technology to be used, you come across three alternatives :
(i) Use a cheeper technology which lets you dispose of the waste and lets you fix the price of your product low.
(ii) Use a technology that is a little expensive as it lets you recycle that waste water into water fit for drinking. In this case, you will have to fix the price a little higher in order to earn profits.
(iii) Use the technology that recycles the waste, do not increase the price and go about cost cutting through efficient ultization of resources. Give reasons for your selection of an alternative. (TBQ) (4 marks)
Ans. Alternate (iii) is to be selected because of the following reasons :
(i) Technology recycles the waste.
(ii) It does not result in increase in price.
(iii) Efficient utilization of resources resulting in cost cutting.

Q3. An individual wants to start an enterprise that manufactures steam iron which can be imported from Germany. The material available in Germany is a little better in quality. However, there are no safety issues with the one available in India. Which material would you go for and why ? (TBQ) (2 marks)
Ans. We will go for the one available in India as there are no safety issues with India made steam iron. Therefore, it is our social responsibility to use Indian made goods rather than import substitution.

Q4. Raghav, an entrepreneur realises that the enterprise he wants to start has a potential risk of fire accidents because the production process poses such a threat. Should he develop strategies to :
(i) Prevent the risk.
(ii) Respond to the risk.
(iii) Prevent as well as respond to the risk ?
Give reaons. (TBQ) (4 marks)
Ans. Raghav should develop strategies to prevent as well as respond to the risk. Strategy to prevent risk should bedeveloped so that the risk does not materialize itself but in case the risk materializes, strategy to respond to that risk would be a help.

Q5. While doing manpower planning an entrepreneur decides to keep less qualified manpower and give them low wages and salaries to enable higher profits. Do you think his approach is correct and justified ? Why ? (4 marks)
Ans. No, the approach of the entrepreneur is not correct. This is because :
(i) In such situation he will not be utilising the resources fully and this will mean more likely wastage of the resources.
(ii) Entrepreneur will not be fulfilling his responsibility of doing social services.
(iii) He will not be doing social justice as he will be exploiting the people for his selfish motive.
(iv) He is also not following self control.