Class 12 Enterpreneurship Official Sample Question Paper (2018-19) | Entrepreneurship Class 12 - Commerce PDF Download

 Page 1


EP/SAMPLE PAPER/18-19 Page 1 
 
CLASS XII 
ENTREPRENEURSHIP (Code- 066) 
SAMPLE QUESTION PAPER 2018-19 
   
Time allowed: 3 Hrs                                                                                             Max Marks: 70                                                                                                     
 
 General instructions: 
? This paper contains 24 questions in 5 parts and all questions are compulsory. 
? Internal choice is given in selected questions. 
? There is no word limit for numerical questions. 
? 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 What is idea germination? 1 
   
2 Differentiate between Brand mark and Trademark. 1 
   
3 Victory Ltd., set up their small manufacturing unit producing bucket seat covers in 
the name of ‘Comfy’. The product was a great hit. After sometime, SMW- market 
leaders in luxury car manufacturing planned to join hands with Victory Ltd. Such a 
deal will allow SMW to obtain better pricing and control over the manufacturing 
process.  
Identify this type of growth strategy.                                              
 
1 
                                                        OR  
 Fitness Ltd., a leading manufacturer of athletic shoes decided to join together with 
Fizz Up, an energy drink manufacturing company especially for sports people. The 
new company, Fitness Up, would help the existing companies to extend their 
markets as goodwill of both would be encashed.    
Identify this type of relationship.  
 
   
4 Name the two factors on which the accuracy of Cash Flow Projections depends 
upon.  
1 
   
5 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 
1 
Page 2


EP/SAMPLE PAPER/18-19 Page 1 
 
CLASS XII 
ENTREPRENEURSHIP (Code- 066) 
SAMPLE QUESTION PAPER 2018-19 
   
Time allowed: 3 Hrs                                                                                             Max Marks: 70                                                                                                     
 
 General instructions: 
? This paper contains 24 questions in 5 parts and all questions are compulsory. 
? Internal choice is given in selected questions. 
? There is no word limit for numerical questions. 
? 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 What is idea germination? 1 
   
2 Differentiate between Brand mark and Trademark. 1 
   
3 Victory Ltd., set up their small manufacturing unit producing bucket seat covers in 
the name of ‘Comfy’. The product was a great hit. After sometime, SMW- market 
leaders in luxury car manufacturing planned to join hands with Victory Ltd. Such a 
deal will allow SMW to obtain better pricing and control over the manufacturing 
process.  
Identify this type of growth strategy.                                              
 
1 
                                                        OR  
 Fitness Ltd., a leading manufacturer of athletic shoes decided to join together with 
Fizz Up, an energy drink manufacturing company especially for sports people. The 
new company, Fitness Up, would help the existing companies to extend their 
markets as goodwill of both would be encashed.    
Identify this type of relationship.  
 
   
4 Name the two factors on which the accuracy of Cash Flow Projections depends 
upon.  
1 
   
5 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 
1 
EP/SAMPLE PAPER/18-19 Page 2 
 
institution these producers should approach for help? 
 OR  
 Shillong is famous for it’s pristine beauty. Ariel Pvt. Ltd. wanted to build an 
ecofriendly amusement park which will not only be known for fun activities but 
will also educate the public about various sustainable development home projects. 
The company felt that it their duty to educate the present generation about Do-it-
yourself projects. This will bring awareness about saving our environment for a 
better future. The company estimated the project to cost around 15 crore. Which 
financial institution should they approach?   
 
 
 
 
 
Part B  
This part contains 5 questions carrying 2 marks each. Answers to these questions 
should be in 50 to 75 words.  
 
   
6 Enlist the elements of Innovation process 2 
   
7 Amish has the habit of reading newspaper on a daily basis. The latest headlines 
caught his attention. The headlines read as follows’ “Government plans to offer 
subsidy to manufacturers of solar panels”. He had also heard from his friend that 
individual house owners are preferring to install solar panels to save electricity. He 
started to make connections that led him to a business idea of establishing a small 
scale industry manufacturing solar panels.  
Identify and explain this way of identification by Amish which has helped him to 
understand the market and produce goods accordingly.   
2 
 OR  
 Dristi ltd. decided to manufacture mobile phones with a new feature. It will have 
an inbuilt button which when pressed will extend into a selfie stick enabling the 
customers to click selfies easily without the need to carry a separate selfie stick. 
Identify two PESTEL factors which enabled Dristi Ltd., to bring out this new 
feature.   
 
   
8 Why is SWOT analysis important in preparing the marketing plan?  2 
   
9 ‘Kindercare’ is a successful brand name in the field of playschool across the 
country. They decided to increase the number of branches all throughout the 
country. For this purpose they decided to give exclusive rights to individuals in 
return for a regular payment. The various conditions included were: 
a. Interested individuals need to have Minimum 2000 feet area and are ready 
to invest around 10,00,000.  
b. Books and uniform to be procured from Kindercare headquarters only. 
c. Content, technical and accounting assistance would be provided.  
d. Teacher training for a month.  
Identify and explain this type business opportunity offered by ‘Kindercare’. 
2 
 OR  
 TCW is a leading cool drink manufacturing company headquartered in Delhi. 
They decided to allow various vendors the opportunity to manufacture and sell 
their products in various parts of the country. The company will provide the raw 
materials for manufacturing the cool drink. Identify and explain this type of 
 
Page 3


EP/SAMPLE PAPER/18-19 Page 1 
 
CLASS XII 
ENTREPRENEURSHIP (Code- 066) 
SAMPLE QUESTION PAPER 2018-19 
   
Time allowed: 3 Hrs                                                                                             Max Marks: 70                                                                                                     
 
 General instructions: 
? This paper contains 24 questions in 5 parts and all questions are compulsory. 
? Internal choice is given in selected questions. 
? There is no word limit for numerical questions. 
? 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 What is idea germination? 1 
   
2 Differentiate between Brand mark and Trademark. 1 
   
3 Victory Ltd., set up their small manufacturing unit producing bucket seat covers in 
the name of ‘Comfy’. The product was a great hit. After sometime, SMW- market 
leaders in luxury car manufacturing planned to join hands with Victory Ltd. Such a 
deal will allow SMW to obtain better pricing and control over the manufacturing 
process.  
Identify this type of growth strategy.                                              
 
1 
                                                        OR  
 Fitness Ltd., a leading manufacturer of athletic shoes decided to join together with 
Fizz Up, an energy drink manufacturing company especially for sports people. The 
new company, Fitness Up, would help the existing companies to extend their 
markets as goodwill of both would be encashed.    
Identify this type of relationship.  
 
   
4 Name the two factors on which the accuracy of Cash Flow Projections depends 
upon.  
1 
   
5 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 
1 
EP/SAMPLE PAPER/18-19 Page 2 
 
institution these producers should approach for help? 
 OR  
 Shillong is famous for it’s pristine beauty. Ariel Pvt. Ltd. wanted to build an 
ecofriendly amusement park which will not only be known for fun activities but 
will also educate the public about various sustainable development home projects. 
The company felt that it their duty to educate the present generation about Do-it-
yourself projects. This will bring awareness about saving our environment for a 
better future. The company estimated the project to cost around 15 crore. Which 
financial institution should they approach?   
 
 
 
 
 
Part B  
This part contains 5 questions carrying 2 marks each. Answers to these questions 
should be in 50 to 75 words.  
 
   
6 Enlist the elements of Innovation process 2 
   
7 Amish has the habit of reading newspaper on a daily basis. The latest headlines 
caught his attention. The headlines read as follows’ “Government plans to offer 
subsidy to manufacturers of solar panels”. He had also heard from his friend that 
individual house owners are preferring to install solar panels to save electricity. He 
started to make connections that led him to a business idea of establishing a small 
scale industry manufacturing solar panels.  
Identify and explain this way of identification by Amish which has helped him to 
understand the market and produce goods accordingly.   
2 
 OR  
 Dristi ltd. decided to manufacture mobile phones with a new feature. It will have 
an inbuilt button which when pressed will extend into a selfie stick enabling the 
customers to click selfies easily without the need to carry a separate selfie stick. 
Identify two PESTEL factors which enabled Dristi Ltd., to bring out this new 
feature.   
 
   
8 Why is SWOT analysis important in preparing the marketing plan?  2 
   
9 ‘Kindercare’ is a successful brand name in the field of playschool across the 
country. They decided to increase the number of branches all throughout the 
country. For this purpose they decided to give exclusive rights to individuals in 
return for a regular payment. The various conditions included were: 
a. Interested individuals need to have Minimum 2000 feet area and are ready 
to invest around 10,00,000.  
b. Books and uniform to be procured from Kindercare headquarters only. 
c. Content, technical and accounting assistance would be provided.  
d. Teacher training for a month.  
Identify and explain this type business opportunity offered by ‘Kindercare’. 
2 
 OR  
 TCW is a leading cool drink manufacturing company headquartered in Delhi. 
They decided to allow various vendors the opportunity to manufacture and sell 
their products in various parts of the country. The company will provide the raw 
materials for manufacturing the cool drink. Identify and explain this type of 
 
EP/SAMPLE PAPER/18-19 Page 3 
 
business opportunity offered by ‘TCW’. 
   
10 The agarbatti market in India is estimated at whopping Rs.3,500 crore annually 
and growing. Indian-made agarbattis are also making rapid inroads into foreign 
countries. 
Agarbatti manufacturing is one of the small scale manufacturing businesses that 
show promise of exponential growth over coming years. Karnataka has been 
famous for Agarbatti manufacturing due to easy availability of raw materials. 
Identify and state any two objectives of the financial institution which will provide 
financial aid to this sector.  
2 
 
 
 
 
Part C  
This part contains 7 questions carrying 3 marks each. Answers to these questions 
should be in about 100 words. 
 
   
11 “All ideas need not necessarily become sound business opportunities”. In 
reference to this statement explain the first three steps in idea and opportunity 
assessment.  
3 
   
12 Shobha is a small scale entrepreneur manufacturing chocolates in the name 
‘Yummilicious’. She had started this venture in the year 2012. She attended 
various start-up meeting where several Angel Investors and Venture Capitalists 
shared their success story and mentored the new budding entrepreneurs.  
In one of these sessions she heard a mentor say that every entrepreneur should 
constantly and consistently aim to improve the products and services already 
existing in the market.  
Taking this cue, Shobha decided to introduce wafers, lollipop and hard candy 
under the same brand name.  
Explain the benefits as to why Shobha is doing so? 
3 
 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 applied to develop new products and services’. State 
any three ways in which creative ideas can be generated. 
 
   
13 Subeer, a tech-entrepreneur and his friend Harish, an investment banker planned to 
start a business organization where they can exercise control over the business, 
manage it with limited liability and that its continuity is not affected by entry or 
exit of members. They intend to maintain the confidentiality of the business 
operations as well. 
Identify the form of business organization best suited for them giving reasons for 
the choice? 
3 
   
14 Explain any three types of Intellectual property rights. 3 
   
15 The villagers of Jamawar have been known for ages for rearing cows. Farmers 
have been selling milk to nearby villages. Renu studied up to grade XII in the 
3 
Page 4


EP/SAMPLE PAPER/18-19 Page 1 
 
CLASS XII 
ENTREPRENEURSHIP (Code- 066) 
SAMPLE QUESTION PAPER 2018-19 
   
Time allowed: 3 Hrs                                                                                             Max Marks: 70                                                                                                     
 
 General instructions: 
? This paper contains 24 questions in 5 parts and all questions are compulsory. 
? Internal choice is given in selected questions. 
? There is no word limit for numerical questions. 
? 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 What is idea germination? 1 
   
2 Differentiate between Brand mark and Trademark. 1 
   
3 Victory Ltd., set up their small manufacturing unit producing bucket seat covers in 
the name of ‘Comfy’. The product was a great hit. After sometime, SMW- market 
leaders in luxury car manufacturing planned to join hands with Victory Ltd. Such a 
deal will allow SMW to obtain better pricing and control over the manufacturing 
process.  
Identify this type of growth strategy.                                              
 
1 
                                                        OR  
 Fitness Ltd., a leading manufacturer of athletic shoes decided to join together with 
Fizz Up, an energy drink manufacturing company especially for sports people. The 
new company, Fitness Up, would help the existing companies to extend their 
markets as goodwill of both would be encashed.    
Identify this type of relationship.  
 
   
4 Name the two factors on which the accuracy of Cash Flow Projections depends 
upon.  
1 
   
5 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 
1 
EP/SAMPLE PAPER/18-19 Page 2 
 
institution these producers should approach for help? 
 OR  
 Shillong is famous for it’s pristine beauty. Ariel Pvt. Ltd. wanted to build an 
ecofriendly amusement park which will not only be known for fun activities but 
will also educate the public about various sustainable development home projects. 
The company felt that it their duty to educate the present generation about Do-it-
yourself projects. This will bring awareness about saving our environment for a 
better future. The company estimated the project to cost around 15 crore. Which 
financial institution should they approach?   
 
 
 
 
 
Part B  
This part contains 5 questions carrying 2 marks each. Answers to these questions 
should be in 50 to 75 words.  
 
   
6 Enlist the elements of Innovation process 2 
   
7 Amish has the habit of reading newspaper on a daily basis. The latest headlines 
caught his attention. The headlines read as follows’ “Government plans to offer 
subsidy to manufacturers of solar panels”. He had also heard from his friend that 
individual house owners are preferring to install solar panels to save electricity. He 
started to make connections that led him to a business idea of establishing a small 
scale industry manufacturing solar panels.  
Identify and explain this way of identification by Amish which has helped him to 
understand the market and produce goods accordingly.   
2 
 OR  
 Dristi ltd. decided to manufacture mobile phones with a new feature. It will have 
an inbuilt button which when pressed will extend into a selfie stick enabling the 
customers to click selfies easily without the need to carry a separate selfie stick. 
Identify two PESTEL factors which enabled Dristi Ltd., to bring out this new 
feature.   
 
   
8 Why is SWOT analysis important in preparing the marketing plan?  2 
   
9 ‘Kindercare’ is a successful brand name in the field of playschool across the 
country. They decided to increase the number of branches all throughout the 
country. For this purpose they decided to give exclusive rights to individuals in 
return for a regular payment. The various conditions included were: 
a. Interested individuals need to have Minimum 2000 feet area and are ready 
to invest around 10,00,000.  
b. Books and uniform to be procured from Kindercare headquarters only. 
c. Content, technical and accounting assistance would be provided.  
d. Teacher training for a month.  
Identify and explain this type business opportunity offered by ‘Kindercare’. 
2 
 OR  
 TCW is a leading cool drink manufacturing company headquartered in Delhi. 
They decided to allow various vendors the opportunity to manufacture and sell 
their products in various parts of the country. The company will provide the raw 
materials for manufacturing the cool drink. Identify and explain this type of 
 
EP/SAMPLE PAPER/18-19 Page 3 
 
business opportunity offered by ‘TCW’. 
   
10 The agarbatti market in India is estimated at whopping Rs.3,500 crore annually 
and growing. Indian-made agarbattis are also making rapid inroads into foreign 
countries. 
Agarbatti manufacturing is one of the small scale manufacturing businesses that 
show promise of exponential growth over coming years. Karnataka has been 
famous for Agarbatti manufacturing due to easy availability of raw materials. 
Identify and state any two objectives of the financial institution which will provide 
financial aid to this sector.  
2 
 
 
 
 
Part C  
This part contains 7 questions carrying 3 marks each. Answers to these questions 
should be in about 100 words. 
 
   
11 “All ideas need not necessarily become sound business opportunities”. In 
reference to this statement explain the first three steps in idea and opportunity 
assessment.  
3 
   
12 Shobha is a small scale entrepreneur manufacturing chocolates in the name 
‘Yummilicious’. She had started this venture in the year 2012. She attended 
various start-up meeting where several Angel Investors and Venture Capitalists 
shared their success story and mentored the new budding entrepreneurs.  
In one of these sessions she heard a mentor say that every entrepreneur should 
constantly and consistently aim to improve the products and services already 
existing in the market.  
Taking this cue, Shobha decided to introduce wafers, lollipop and hard candy 
under the same brand name.  
Explain the benefits as to why Shobha is doing so? 
3 
 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 applied to develop new products and services’. State 
any three ways in which creative ideas can be generated. 
 
   
13 Subeer, a tech-entrepreneur and his friend Harish, an investment banker planned to 
start a business organization where they can exercise control over the business, 
manage it with limited liability and that its continuity is not affected by entry or 
exit of members. They intend to maintain the confidentiality of the business 
operations as well. 
Identify the form of business organization best suited for them giving reasons for 
the choice? 
3 
   
14 Explain any three types of Intellectual property rights. 3 
   
15 The villagers of Jamawar have been known for ages for rearing cows. Farmers 
have been selling milk to nearby villages. Renu studied up to grade XII in the 
3 
EP/SAMPLE PAPER/18-19 Page 4 
 
village school and when she passed her exams with flying colours her parents sent 
her to the nearby city for undergraduate course. While studying there she noticed 
that the food habits of people were changing and cheese was used in many 
products.  
After finishing her degree she went back to her village and met the sarpanch. She 
explained to him the demand for cheese and if a small scale unit is established in 
the village to convert milk into cheese, it might benefit the entire community. 
Taking her advice the sarpanch found out the process of turning milk into cheese.  
Accordingly, they set up a unit in the village with help from the Government 
authorities. The farmers together decided to run the unit and use eco friendly 
methods of production and packaging. They decided to brand their product by the 
name, “Organica Cheese”. They also thought of setting aside 2% of the profits for 
the establishing health centers for villagers.  
Keeping in mind the above facts, state the sentence from the case study and 
explain the types of added value.  
 OR  
 Business add 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. 
 
   
16 Iqbal runs an electrical shop in Lucknow. The most sold product in his shop is 
ceiling fans. The annual demand for fans is 32,000. The annual holding cost per 
unit is Rs.192. The cost incurred in placing an order is Rs.3000. Calculate the 
Economic Ordering Quantity of Ceiling fans. 
3 
 OR  
 The following figures are extracted from the balance sheet of Swadesha Ltd.  
                                    Net profit after tax: Rs. 2,00,000 
                                    Net profit before tax: Rs. 2,80,000 
                                    Total Investment(Owned + Borrowed): Rs. 4,00,000 
                                    Own funds: Rs.1,00,000 
Calculate Return on Equity for Swadesha Ltd. 
 
17 State the regulatory functions of NABARD. 3 
   
 
Part D  
This part contains 4 questions carrying 4 marks each. Answers to these questions 
should be in about 150 words. 
 
 
 
 
18 Entrepreneurship does not emerge and grow spontaneously. Rather, it is dependent 
upon several economic, social, political, legal and other factors. An entrepreneur 
has to carefully monitor the organization's internal and external environment for 
detecting early signs of opportunities and threats that may influence its current and 
future plans. Identifying the concept, justify its importance for an entrepreneur. 
4 
 OR  
 An entrepreneur identifies problems as roadblocks. They understand that they need  
Page 5


EP/SAMPLE PAPER/18-19 Page 1 
 
CLASS XII 
ENTREPRENEURSHIP (Code- 066) 
SAMPLE QUESTION PAPER 2018-19 
   
Time allowed: 3 Hrs                                                                                             Max Marks: 70                                                                                                     
 
 General instructions: 
? This paper contains 24 questions in 5 parts and all questions are compulsory. 
? Internal choice is given in selected questions. 
? There is no word limit for numerical questions. 
? 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 What is idea germination? 1 
   
2 Differentiate between Brand mark and Trademark. 1 
   
3 Victory Ltd., set up their small manufacturing unit producing bucket seat covers in 
the name of ‘Comfy’. The product was a great hit. After sometime, SMW- market 
leaders in luxury car manufacturing planned to join hands with Victory Ltd. Such a 
deal will allow SMW to obtain better pricing and control over the manufacturing 
process.  
Identify this type of growth strategy.                                              
 
1 
                                                        OR  
 Fitness Ltd., a leading manufacturer of athletic shoes decided to join together with 
Fizz Up, an energy drink manufacturing company especially for sports people. The 
new company, Fitness Up, would help the existing companies to extend their 
markets as goodwill of both would be encashed.    
Identify this type of relationship.  
 
   
4 Name the two factors on which the accuracy of Cash Flow Projections depends 
upon.  
1 
   
5 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 
1 
EP/SAMPLE PAPER/18-19 Page 2 
 
institution these producers should approach for help? 
 OR  
 Shillong is famous for it’s pristine beauty. Ariel Pvt. Ltd. wanted to build an 
ecofriendly amusement park which will not only be known for fun activities but 
will also educate the public about various sustainable development home projects. 
The company felt that it their duty to educate the present generation about Do-it-
yourself projects. This will bring awareness about saving our environment for a 
better future. The company estimated the project to cost around 15 crore. Which 
financial institution should they approach?   
 
 
 
 
 
Part B  
This part contains 5 questions carrying 2 marks each. Answers to these questions 
should be in 50 to 75 words.  
 
   
6 Enlist the elements of Innovation process 2 
   
7 Amish has the habit of reading newspaper on a daily basis. The latest headlines 
caught his attention. The headlines read as follows’ “Government plans to offer 
subsidy to manufacturers of solar panels”. He had also heard from his friend that 
individual house owners are preferring to install solar panels to save electricity. He 
started to make connections that led him to a business idea of establishing a small 
scale industry manufacturing solar panels.  
Identify and explain this way of identification by Amish which has helped him to 
understand the market and produce goods accordingly.   
2 
 OR  
 Dristi ltd. decided to manufacture mobile phones with a new feature. It will have 
an inbuilt button which when pressed will extend into a selfie stick enabling the 
customers to click selfies easily without the need to carry a separate selfie stick. 
Identify two PESTEL factors which enabled Dristi Ltd., to bring out this new 
feature.   
 
   
8 Why is SWOT analysis important in preparing the marketing plan?  2 
   
9 ‘Kindercare’ is a successful brand name in the field of playschool across the 
country. They decided to increase the number of branches all throughout the 
country. For this purpose they decided to give exclusive rights to individuals in 
return for a regular payment. The various conditions included were: 
a. Interested individuals need to have Minimum 2000 feet area and are ready 
to invest around 10,00,000.  
b. Books and uniform to be procured from Kindercare headquarters only. 
c. Content, technical and accounting assistance would be provided.  
d. Teacher training for a month.  
Identify and explain this type business opportunity offered by ‘Kindercare’. 
2 
 OR  
 TCW is a leading cool drink manufacturing company headquartered in Delhi. 
They decided to allow various vendors the opportunity to manufacture and sell 
their products in various parts of the country. The company will provide the raw 
materials for manufacturing the cool drink. Identify and explain this type of 
 
EP/SAMPLE PAPER/18-19 Page 3 
 
business opportunity offered by ‘TCW’. 
   
10 The agarbatti market in India is estimated at whopping Rs.3,500 crore annually 
and growing. Indian-made agarbattis are also making rapid inroads into foreign 
countries. 
Agarbatti manufacturing is one of the small scale manufacturing businesses that 
show promise of exponential growth over coming years. Karnataka has been 
famous for Agarbatti manufacturing due to easy availability of raw materials. 
Identify and state any two objectives of the financial institution which will provide 
financial aid to this sector.  
2 
 
 
 
 
Part C  
This part contains 7 questions carrying 3 marks each. Answers to these questions 
should be in about 100 words. 
 
   
11 “All ideas need not necessarily become sound business opportunities”. In 
reference to this statement explain the first three steps in idea and opportunity 
assessment.  
3 
   
12 Shobha is a small scale entrepreneur manufacturing chocolates in the name 
‘Yummilicious’. She had started this venture in the year 2012. She attended 
various start-up meeting where several Angel Investors and Venture Capitalists 
shared their success story and mentored the new budding entrepreneurs.  
In one of these sessions she heard a mentor say that every entrepreneur should 
constantly and consistently aim to improve the products and services already 
existing in the market.  
Taking this cue, Shobha decided to introduce wafers, lollipop and hard candy 
under the same brand name.  
Explain the benefits as to why Shobha is doing so? 
3 
 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 applied to develop new products and services’. State 
any three ways in which creative ideas can be generated. 
 
   
13 Subeer, a tech-entrepreneur and his friend Harish, an investment banker planned to 
start a business organization where they can exercise control over the business, 
manage it with limited liability and that its continuity is not affected by entry or 
exit of members. They intend to maintain the confidentiality of the business 
operations as well. 
Identify the form of business organization best suited for them giving reasons for 
the choice? 
3 
   
14 Explain any three types of Intellectual property rights. 3 
   
15 The villagers of Jamawar have been known for ages for rearing cows. Farmers 
have been selling milk to nearby villages. Renu studied up to grade XII in the 
3 
EP/SAMPLE PAPER/18-19 Page 4 
 
village school and when she passed her exams with flying colours her parents sent 
her to the nearby city for undergraduate course. While studying there she noticed 
that the food habits of people were changing and cheese was used in many 
products.  
After finishing her degree she went back to her village and met the sarpanch. She 
explained to him the demand for cheese and if a small scale unit is established in 
the village to convert milk into cheese, it might benefit the entire community. 
Taking her advice the sarpanch found out the process of turning milk into cheese.  
Accordingly, they set up a unit in the village with help from the Government 
authorities. The farmers together decided to run the unit and use eco friendly 
methods of production and packaging. They decided to brand their product by the 
name, “Organica Cheese”. They also thought of setting aside 2% of the profits for 
the establishing health centers for villagers.  
Keeping in mind the above facts, state the sentence from the case study and 
explain the types of added value.  
 OR  
 Business add 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. 
 
   
16 Iqbal runs an electrical shop in Lucknow. The most sold product in his shop is 
ceiling fans. The annual demand for fans is 32,000. The annual holding cost per 
unit is Rs.192. The cost incurred in placing an order is Rs.3000. Calculate the 
Economic Ordering Quantity of Ceiling fans. 
3 
 OR  
 The following figures are extracted from the balance sheet of Swadesha Ltd.  
                                    Net profit after tax: Rs. 2,00,000 
                                    Net profit before tax: Rs. 2,80,000 
                                    Total Investment(Owned + Borrowed): Rs. 4,00,000 
                                    Own funds: Rs.1,00,000 
Calculate Return on Equity for Swadesha Ltd. 
 
17 State the regulatory functions of NABARD. 3 
   
 
Part D  
This part contains 4 questions carrying 4 marks each. Answers to these questions 
should be in about 150 words. 
 
 
 
 
18 Entrepreneurship does not emerge and grow spontaneously. Rather, it is dependent 
upon several economic, social, political, legal and other factors. An entrepreneur 
has to carefully monitor the organization's internal and external environment for 
detecting early signs of opportunities and threats that may influence its current and 
future plans. Identifying the concept, justify its importance for an entrepreneur. 
4 
 OR  
 An entrepreneur identifies problems as roadblocks. They understand that they need  
EP/SAMPLE PAPER/18-19 Page 5 
 
to bring creative solutions to it. For this he needs to completely understand the 
problem, identify the target group and find an acceptable solution. Justify as to 
how identifying a problem will help an entrepreneur.  
   
19 What are the different types of acquisition? 4 
   
20 “Writing a good business plan can’t guarantee success, but it can go a long way 
towards reducing the odds of failure”. Elucidate the importance of a business plan 
in this context.  
4 
 OR  
 There is no fixed format for business plan presentation. It varies according to the 
entrepreneur’s goals and audience, especially for start-ups there are four formats 
that are followed for business plan presentation. Comment.  
 
   
21 Explain any four importance of stock market from the viewpoint of investors.  4 
   
 
Part E  
This part contains 3 questions carrying 6 marks each. Answers to these questions 
should be in about 200 words. 
 
   
22 Writing Instruments Ltd. is engaged in manufacturing and distribution of Ballpoint 
Pen, Sketch Pen and Gel Pen. 
 
 Product                  Ballpoint Pen Sketch Pen   Gel Pen 
Sales price/unit                40               45                   75 
Variable cost/unit                20               30                   40 
The total fixed cost is Rs.75,000 per month. For the coming month, it expects the 
sale of three products in the ratio – 2:1:2. 
Compute the break-even point of the company in Rupees for the coming month. 
6 
   
23 Arushi finished her graduation course on designing from a reputed university. She 
wanted to pursue higher studies from a foreign university. Her father felt that she 
should work for some time, gain some experience and then proceed to further 
study. Taking his advice she joined a top advertising firm ‘Crypton Ltd’.  
The company was very famous and they had several important clients. As her first 
assignment, Arushi had to design an advertisement for print media for one of their 
major clients ‘Amoridilla Soaps’. They were introducing new ayurvedic soap and 
they wanted Crypton to design an advertisement which was unique.  
Arushi started researching on the various rules of designing advertisement. She 
learnt that all good advertisements should elicit responses.  
a. State the responses and rules to be followed while designing an advertisement.   
b. Also, Identify and explain the promotion strategy followed by ‘Amoridilla 
Soaps’.  
6 
 OR  
 ‘Blessy Ltd., decided to diversify into manufacturing vitamin enriched water apart