Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12

Class 12: Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12

The document Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12 is a part of the Class 12 Course Sample Papers for Class 12 Commerce.
All you need of Class 12 at this link: Class 12


Class - XII
Time: 90
Max. Marks: 35

General Instructions:
1. The Question Paper contains three sections.
2. Section - A has 24 questions. Attempt any 20 questions.
3. Section - B has 24 questions. Attempt any 20 questions.
4. Section - C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.

Section - A

Q.1: Which of the following is not true for economic activity?
(a) Objective of economic activities is to earn living.
(b) The results can be measured in terms of money.
(c) It is guided by sentiments and emotions.
(d) It involves proper allocation of resources. 

Correct Answer is Option (c)
Economic activity is the one which is guided by rational considerations of cost and benefit. The activities guided by sentiments and emotion without regard to gain and sacrifice are non-economic activities.


Q.2: Problem identification helps the entrepreneur by:
(a) Helping him understand the market problems and needs
(b) Enables him to be more creative
(c) Both (a) and (b)
(d) None of these 

Correct Answer is Option (c)
Problem identification helps the entrepreneur by helping him understand the market problems and needs and enables him to be more creative.


Q.3: Online coaching is an improvement over the physical classes. Which idea field is referred in the statement?
(a) existing products and services
(b) natural resources
(c) trading based
(d) service based 

Correct Answer is Option (a)
Idea for a new venture can be obtained by making improvements in the existing products or services. Improvements in the existing products or services can be successful if done with skills and care.


Q.4: Accord Electronics Ltd. was operating its business in New Zealand. Prime Minister of India announced relaxation and import duties on electronic items. Accord electronics decided to export its product to India and appointed its retailers in India to supply the stock to the customers. Identify the dimension of macro environment discussed in the above case.
(a) Political
(b) Technical
(c) Legal
(d) Social

Correct Answer is Option (a)
The political environment includes government policies, stability of government, ideology of political parties in power, etc.


Q.5: The strengths and weaknesses of any business can be analysed through:
(a) Analysis of internal environment
(b) Analysis of external environment
(c) Both (A) and (B)
(d) None of these 

Correct Answer is Option (a)
Strengths and weaknesses can be identified through the analysis of internal environment. The analysis of external environment reveals opportunities and threats.


Q.6: An entrepreneur is a person who:
(a) earns income for himself
(b) conceives an idea to start a business
(c) both (a) and (b)
(d) None of these

Correct Answer is Option (c)
An entrepreneur is responsible for his own income and have an idea to start a business. He identifies the opportunity and threats for a business.


Q.7: Minimum number of employees in a private company are:
(a) 2
(b) 7
(c) 10
(d) 20 

Correct Answer is Option (a)
A private company can have a minimum of 2 and a maximum of 200 members excluding its past and present employees.


Q.8: Hindustan Lever launched small sachets of shampoos and other products realising the easiness to carry them and storing them. This increased the sales of the firm as the customers’ wants were fulfilled. Identify the importance of environmental scanning in above statement.
(a) Early warning signals
(b) Customer focus
(c) Strategy formulation
(d) Public image 

Correct Answer is Option (b)
Environmental understanding makes the management sensitive to the changing needs and expectations of the consumers.


Q.9: Once debit and credit cards were used for cashless payments but now digital payments systems are more popular. What is required to discovered this new idea here?
(a) Problems of society
(b) Creativity
(c) Business Opportunity
(d) Potential
 

Correct Answer is Option (b)
Creativity is required to discover any new idea in entrepreneurship. Creativity provides stimulus for opportunity discovery and new venture creation.


Q.10: A business idea could emerge from several sources. What can be these sources?
(a) Needs
(b) Problems
(c) Inventions
(d) All of these
 

Correct Answer is Option (d)
Business idea could emerge from several sources like needs, problems, invention, changes, innovation and competition.


Q.11: Which of the following statement is correct with respect to Joint Stock Company?
(a) Company is a creation of law.
(b) A company has an independent status.
(c) A company uses a common seal on which its name is engraved.
(d) All of these 

Correct Answer is Option (d)


Q.12: The process of discovering, developing and communicating idea is known as _____
(a) Creativity
(b) Idea generation
(c) Sensing opportunity
(d) Innovation 

Correct Answer is Option (b)


Q.13: Sunil Mittal foresaw telecommunication as opportunity in Economic Liberalisation Policy, 1991 of the government and launched Bharti Airtel. What ability of the entrepreneur is highlighted here?
(a) Ability to spot ideas
(b) Ability to tap different sources of information
(c) Vision and creativity
(d) All of these 

Correct Answer is Option (c)
Vision is the ability to foresee the emerging trends and creativity is the ability to generate a solution to the problem or need. Both are necessary for sensing business opportunity.


Q.14: Which of the following is not the element of operation plan?
(a) Routing
(b) Scheduling
(c) Plant Layout
(d) Dispatching 

Correct Answer is Option (c)


Q.15: Before starting any business, it is important for an entrepreneur to make sure that the technology he requires is available. This study is known as _______
(a) Product Identification
(b) Market Assessment
(c) Technical Feasibility
(d) Application and Use

Correct Answer is Option (c)
The type of technology required to produce the product and its availability must be ensured. This study is called technical feasibility.


Q.16: An idea can be rejected if it proved to be impractical or useless. In which stage of creativity does this happen?
(a) Preparation
(b) Incubation
(c) Illumination
(d) Verification
 

Correct Answer is Option (d)
An idea illuminated in the mind of a person still has little meaning until it is verified as realistic and useful in application. Ideas that are proved to be impractical are useless are rejected.


Q.17: Discovery of new ideas is known as:
(a) Invention
(b) Innovation
(c) Introduction
(d) Creativity 

Correct Answer is Option (a)


Q.18: Which of the following statement is true with respect to business?
(a) No qualifications are essential for starting a business
(b) Risk is negligible
(c) Salary is fixed
(d) No capital is required. 

Correct Answer is Option (a)


Q.19: Indian Railways is a fully owned enterprise by the government. Which type of business enterprise is it?
(a) Public Sector Enterprise
(b) Private Sector Enterprise
(c) Joint Sector Enterprise
(d) None of these

Correct Answer is Option (a)
The business enterprises fully owned and controlled by the government are public sector enterprises.


Q.20: Market research and survey is part of which step of the creative process?
(a) Idea germination
(b) Preparation
(c) Incubation
(d) Verification 

Correct Answer is Option (b)
Preparation is the step in which the entrepreneur undertakes market research before introducing the product or service in the market.


Q.21: Analysing the size and location of target market, existing supply, degree of competition, etc. forms a part of:
(a) Product identification
(b) Market assessment
(c) Technical feasibility
(d) Level of operation
 

Correct Answer is Option (b)
While converting the idea of an opportunity market assessment is important the following factors are considered while assessing the market demand nature and degree of competition cost and price of the product Innovation and changes.


Q.22: A business plan is a _________.
(a) It is a comprehensively written down document.
(b) It is a road map required by the venture.
(c) It is a formal statement of a set of business goals to be achieved by the enterprise.
(d) All of these 

Correct Answer is Option (d)


Q.23: Ownership of ______ can be easily transferred.
(a) Business
(b) Profession
(c) Employment
(d) All of these 

Correct Answer is Option (c)


Q.24: E-commerce or online trading websites like Amazon Flipkart are modern form of which type of business activity.
(a) Manufacturing
(b) Trading
(c) Service
(d) All of these

Correct Answer is Option (b)
Trading involves buying and selling of goods. E-commerce websites are a form of trading.


Section - B

Q.25: Which of the following examples is not a part of the social environmental factor?
(a) At the time of Holi, a large number of manufacturing firms get involved in making colours which are used in the celebration of this colourful festival.
(b) A particular channel refrains from showing the advertisement of a particular product as it is banned by the government.
(c) The sale of sarees increases in the months of the year when a large number of marriages take place in India. The saree manufacturing companies make special plans of sale for these months.
(d) (A) and (C) only

Correct Answer is Option (b)
Government rules and regulations which prohibit or restrict advertisements are a part of legal environmental factor.


Q.26: Arvind started his manufacturing unit in Jammu and Kashmir, scarf, both woollen and silk. His business was not picking up in the markets as desired. He found out the reason his scarves were not selling was due to their colour. What could be the best source of this information?
(a) Manufacturers
(b) Retailer
(c) Competitors
(d) Government bureau 

Correct Answer is Option (b)
Retailers are the last point of the chain of supply. They have a personal touch with the customers which helps in identify their needs and wants.


Q.27: Ramesh starts his day by reading all newspapers and has a keen interest towards all business news and articles. He connects the articles with the observations he has made over the years which he knows will eventually lead to business-boosting insights. Identify the way of trend spotting at this level.
(a) Read trend
(b) Think trend
(c) Watch trend
(d) Talk trend

Correct Answer is Option (b)
As entrepreneurs absorb and mull about what they have read, heard an  observed, they’ll start to make connections and observations that will lead to business boosting insights.


Q.28: Moon Pharma Ltd. manufactures face masks and face shield, amidst the COVID-19 pandemic. The total fixed cost of entire operations is ₹1,40,000.
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
The Break-even quantity for face masks will be__________________.
(a) 4,000 pieces
(b) 6,000 pieces
(c) 10,000 pieces
(d) 1,00,000 pieces

Correct Answer is Option (b)
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12


Q.29: The scope of the company form of organisation is determined by:
(1) The Companies Act, 2013
(2) Memorandum of Association
(3) Articles of Association

(a) Only 1
(b) Both 1, 2
(c) Only 2
(d) All 1, 2, 3 

Correct Answer is Option (d)


Q.30. Assertion (A): Needs and problems exists in the environment.
Reason (R): Opportunity is spotted by analysing the environment.
(a) A is true but R is false.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true and R is the correct explanation of A.
(d) Both A and R are false. 

Correct Answer is Option (b)
Needs and problems exists in the environment. Environmental analysis and scanning is necessary to identify the needs and problems and not opportunity. Identification of needs and problems can lead to a creative idea.


Q.31: Can all ideas be converted into opportunities?
(a) Yes, as ideas lead to opportunity.
(b) Yes, only if it has assured market scope.
(c) Yes, only if there is a good market for the product and rate of return on the investment is attractive.
(d) Yes, if the entrepreneur has enough financial resources.

Correct Answer is Option (c)


Q.32: An economic idea which can be implemented to create a business enterprise and earn profits must possessed with:
(i) Practicability of the idea
(ii) Competence of the entrepreneur to encash it
(iii) Potential of future growth

(a) Only (i)
(b) (i) and (ii) only
(c) (i), (ii) and (iii)
(d) (ii) and (iii) only

Correct Answer is Option (c)


Q.33: Amaze Ltd., is a company engaged in the manufacturing of air- conditioners. The company has four main departments Purchase, Marketing & Sales, Finance and Warehousing. As the demand for the product grew, the company decided to recruit more employees in the Finance department and Marketing & Sales departments. Identify the component of the business plan which will help the Human Resource Manager to decide and recruit the required number of persons for each department.
(a) Marketing Plan
(b) Financial Plan
(c) Manpower Plan
(d) Organisational Plan 

Correct Answer is Option (c)
Manpower plan help the human resource manager to estimate the right number of employees needed for a work.


Q.34: During the Pandemic, the worst hit were the families who were infected by the virus and had no source for home cooked nutritious food. ‘Chilly Chillz’ is a multi-cuisine chain of restaurants operating throughout Delhi by a well-established network of outlets. The owner of the chain understood the concern and started serving 3 course meal to such families on payment basis. The interested customers had to login the website, select their location and set their menu for the day. This service proved to be a great support for suffering families. What was the source of generation of basic idea?
(a) Innovation
(b) Invention
(c) Problem
(d) Competition
 

Correct Answer is Option (c)
Ideas of a new business can be spotted by analysing the needs and problems of the society.


Q.35: Bhawna, Maya, and Advik’s interior design business was taking off in a big way. Their talent was in high demand. Now, the trio needed to hire more employees. Since the needs of their company were changing, they reviewed their personal circumstances, finances, and goals. They decided to legally organize their organization into one with a limited liability. Identify the type of organization the trio will form.
(a) Partnership
(b) Public Company
(c) Private Company
(d) Company

Correct Answer is Option (c)

A private company can be formed with minimum 2 members and has limited liability. A public company required at least 7 members to be formed.


Q.36: Mota Ram runs a small business specialising in delivering organic fruits and vegetables to the local area. He buys from local farms and packages these in boxes and delivers them locally. Total fixed cost incurred in the entire operation is ₹1,00,000.
What will be the Total Break-even Point for Mota Ram?

Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
(a) 100 boxes 
(b) 1000 boxes 
(c) 10,000 boxes 
(d) 1,00,000 boxes

Correct Answer is Option (b)
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12


Q.37: George Kutty has a coffee bean processing unit in Kerala. During the pandemic, he has learnt different styles to make coffee. He started improvising his product and range to make coffee premixes in different varieties like Latte, Mocha, Dalgona which will eventually help him to establish a place for his brand in the beverage industry. Identify the Idea field used by him: 
(a) Market driven 
(b) Trading related 
(c) Creative efforts 
(d) Service sector

Correct Answer is Option (c)
Creative solutions to the society’s problem is a major business idea field. Finding new uses of a product or a new market or a new method consist of creative efforts.


Q.38: Aloma Ayurvedic Limited is a well-established name in the market for ayurvedic medicine. It has entered into the market of immunity booster drinks and has introduced Immunity Shots in special packaging, in two flavours.
Total fixed cost incurred in the entire operation is ₹ 5,60,000.
Based on the Break-even point analysis, will it be economically viable for Aloma Ayurvedic Limited to continue with the production of these immunity shots?

Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
(a) Yes, as there is a big market for immunity boosting products.
(b) No, because there is a limited variety of immunity boosting shots being introduced by the company.
(c) No, because the break-even point is very greater than the combined sale of the two varieties.
(d) Yes, because the break-even point is smaller than the combined sale of the two varieties.

Correct Answer is Option (c)
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
In the given case, BEP calculated is 20,000 shots which implies the firm will be at no profit no loss when it sales at least 20,000 shots which is far higher than combined sales of both shots. (4000+6000 Shots).


Q.39: Which of the following statements correctly explains the concept of creative efforts?
1. Develop and improve an existing or new product or service.
2. Compete with an existing product or service.
3. Find a new process or resource for manufacturing a product.
(a) Both 1, 3
(b) All 1, 2, 3
(c) Both 2, 3
(d) Only 1

Correct Answer is Option (a)
Creative efforts are concerned with developing new ideas and innovating the existing products.


Q.40: Assertion (A): A company which is suffering huge losses can be shut down only by following the procedures laid down in Companies Act.
Reason (R): A company can be born as well as liquidated only by law.
(a) A is true but R is false.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true and R is the correct explanation of A.
(d) Both A and R are false.

Correct Answer is Option (c)
A company is a legal person. It can be formed and liquidated only by law.


Q.41: Nonika Ltd. manufactures two types of calculators, Basic Model and Scientific Calculators. The total fixed cost of entire operations is ₹1,40,000.
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
The weighted average contribution will be__________________.
(a) ₹650 
(b) ₹455 
(c) ₹295 
(d) ₹560

Correct Answer is Option (c)

Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12


Q.42: WX Ltd. is in the process of innovating a new pen drive especially for teachers which will have a built-in antivirus and which can be worn like a watch so it minimizes the problem of losing the pen drive. Which of the given statements aptly describes the situation? 
(a) This is trend spotting. 
(b) This is product identification. 
(c) This is problem solving. 
(d) This is problem solving by introducing an innovative product.

Correct Answer is Option (b)

Product identification is where an idea lead to a product/service which an entrepreneur can sell.


Q.43: Match the following:
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
(a) 1 - iii, 2 - iv, 3 - ii, 4 - i
(b) 1 - iii, 2 - ii, 3 - iv, 4 - i
(c) 1 - ii, 2 - iii, 3 - i, 4 - iv
(d) 1 - iv, 2 - iii, 3 - ii, 4 – i

Correct Answer is Option (a)


Q.44: Calculation of Break-even Point is useful for the entrepreneur as it helps in assessing:
(a) The maximum level of output to be produced.
(b) The effect of change in quantity of input upon the production.
(c) The cost price of the product.
(d) The profitable options in line of production.

Correct Answer is Option (d)
Break-even point is the level of sales (or revenue generated) that equals all the expenses required for generating that revenue. It is not more than the expenses (i.e. no profit) nor is it less than the expenses (i.e. no loss).


Q.45: Match the following:
Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12
(a) 1 - iii, 2 - iv, 3 - ii, 4 - i
(b) 1 - iii, 2 - ii, 3 - iv, 4 - i
(c) 1 - ii, 2 - iii, 3 - i, 4 - iv
(d) 1 - iv, 2 - iii, 3 - ii, 4 - i

Correct Answer is Option (a)


Q.46: Amar and Akbar started a partnership firm to help the poor and needy. They collected money from various agencies and used it to benefit all those who are in dire need. Which characteristic are they violating?
(a) Agreement
(b) Unlimited liability
(c) Profit sharing
(d) Utmost good faith

Correct Answer is Option (c)
Partnership is where partners shares profits in a given ratio. Here, the partners have agreed together to do charity and not earn profit out of it.


Q.47: Safe for Women’- SFW has been a known brand among working women as the company keeps introducing various new innovative products for the safety of women. Their latest product is a pen which can be used as a pocket knife. The product is in huge demand. Which point of importance of scanning the environment does this news indicate?
(a) Formulation of strategies and policies
(b) Tapping useful resources
(c) Image building
(d) Better performance

Correct Answer is Option (c)
If a company is sensitive to the external environment, it will come out with new products and services to meet the requirements of the customers. This would build the image or reputation of the firm in the eyes of the general public.


Q.48: Which of the following factors are involved in sensing opportunities?
1. Ability to perceive and preserve basic ideas
2. Ability to read the environment
3. Ability to assess the environment
4. Ability to harness different sources of information

(a) 1, 2 only
(b) 1 only
(c) 1, 4 only
(d) 1, 2, 3 only

Correct Answer is Option (c)
An entrepreneur uses observations, analysis, to discover new ideas. New ideas or opportunities can also be collected from various source of information like seminars, trade shows, friends, relatives, journals, newspaper, etc.


Section - C

Q.49: 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 diet 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 needs a ‘roadmap’ for himself to start the venture. The term used for ‘road map’ is ________.
(a) Environment scanning
(b) Business plan
(c) Marketing research
(d) Planning
 

Correct Answer is Option (b)
The business plan is a comprehensively written down document prepared by the entrepreneur describing formally all the relevant external and internal elements involved in starting a new venture. It is a roadmap required by a venture.


Q.50: Ketan wants to start a bag manufacturing factory. In order to pitch his potential investors, he has prepared an interesting slide show. Instead of detailed written plan he thinks a presentation with a few graphs to depict the financial trends of the business will be attractive to awaken the interest of potential investors. Which format of business plan is used here by Ketan for his business?
(a) Elevator pitch
(b) Pitch deck with oral narratives
(c) Written presentation
(d) Internal Operational Plan 

Correct Answer is Option (b)
Pitch deck with oral narratives is an interesting slide show and oral narrative which is used to awaken the interest of potential investors. It contains a few key graph to depict financial trends and key benchmarks for decision making.


Q.51: Nayan has just passed his Senior Secondary Examination from CBSE affiliated school. He wanted to start his own business but was undecided about the nature of the business to be started. One day, during the morning walk, his grandfather fell down in the park and was injured. He observed that his grandfather often forgot to take his medicines. He thought that the same problem may be faced by other old people. He thought to develop a walking stick for old people that could be fitted with some electric devices connected to the mobile phones of the members of their families which could indicate the location of the old people when they go outside their homes. He also thought to fit a timer in the stick that could remind them about the time of taking their medicines. Identify the concept describe in the above para that helped Nayan in structuring his idea of solving the problem.
(a) Problem identification
(b) Environment scanning
(c) Sensing Entrepreneurial Opportunities
(d) Trend Spotting 

Correct Answer is Option (a)
Problem is a roadblock in a situation, something that sets up a conflict and forces you to find a solution. It has the following uses: Bring out new products in the market, understand the problems and needs of the market, be creative, increase employment generation, increase national income of the country.


Q.52: Lakshmi wants to start a new business but she is not aware of the emerging trends in the market.  Her friend suggests her that she should hire a professional to do this for her. She contacted a professional who was charging very high amount for the same she decided to do it herself she started reading publications business magazines and also research on various websites to obtain necessary information. State the way Lakshmi is using for spotting the trend.
(a) Read trend
(b) Talk trend
(c) Watch trend
(d) Think trend 

Correct Answer is Option (a)
Read trend includes reading publications, websites, newspapers, etc. in order to obtain the necessary information.


Q.53: Suganya wanted the younger generation to understand the nutritional value of traditional food. Keeping this in mind, she started a ‘Eat to Fit’ - ETF restaurant and it was a successful venture. She opened many branches all over the state. Seeing her success, other restaurants followed the same model but ‘ETF’ always had the major market share. Which point of importance of the environment does this case imply?
(a) Tapping useful resources
(b) Better performance
(c) Sensitisation of entrepreneurs to cope up with rapid changes
(d) Identification of opportunities to get first mover advantage 

Correct Answer is Option (d)
Environmental scanning helps a business firm to analyse the internal environment of the company and identify the strengths that give a competitive advantage to the company.


Q.54: Kirti is a well-trained beautician. She owns a beauty parlour and her has a good number of clients. She has many trained beauticians working under her. She observes that the concept of Home Salon is getting popular among the clients these days. She decides to start a website where the clients can book their appointments for home salon services. She receives an excellent response on her initiative. Which Idea field has been used by Kirti?
(a) Service Based
(b) Trading Based
(c) Natural Resources
(d) Existing Products/ Services

Correct Answer is Option (a)
Service sector has been growing rapidly due to advancements in information technology and social changes. New opportunities can be identified by understanding the linkages to different business activities.


Q.55: Sudha started her small-scale business of making Pickles along with few of her neighbours using their free time at home. They named their venture ‘Home sweet Home’. They were able to supply the entire district. One of the members suggested that they should expand and start selling to other states. When she discussed the same to her husband, he suggested that they have to properly look into the environment analysing the competitors. He suggested Sudha to:
(a) Formulate policies
(b) Tap useful resources
(c) Environment scanning
(d) Image building
 

Correct Answer is Option (c)
Environmental scanning is a process of carefully monitoring the external and internal environment to understand the opportunities and threats that may influence an organisations' plans.


Q.56: Balwant Singh of Bikaner thought of airconditioned houses which do not require electricity. He wanted to explore the idea of construction of such eco-friendly houses which will remain cool in summers and warm in winters. He conceived the idea in 2010 but the final product could take shape in 2014. It is _______________ stage of creative process.
(a) Idea germination
(b) Preparation
(c) Incubation
(d) Illumination
 

Correct Answer is Option (a)
Idea germination is this stage where the entrepreneur recognizes the existence of an opportunity. Being himself fitness conscious he explored an opportunity according to his intent.


Q.57: Vinita, Bhavana, Rani and Nandini are all good friends in the age group of 15-17 years of age. All of them decided together to start a business venture of making soaps at home using natural ingredients. They decided to name their venture as ‘O&HM’ meaning Organic and Home Made. They spoke about their venture to their parents and asked them if their business could be registered so that it will be easy to divide the profits. Vinita suggested that they should register it as a Partnership firm. Can they form a partnership firm?
(a) No, they cannot form a partnership firm since all of them are minors.
(b) Yes, they can form a partnership firm.
(c) No, since minimum number of people required to form a partnership is 10.
(d) None of these 

Correct Answer is Option (a)
Minimum age criteria to form a partnership firm is 18 years. All of them in the situation is between 15-17 years.


Q.58: Harsh, Jacky, Himanshu and Luv were childhood friends. They studied together till class XII from CBSE board. After completing their studies, Harsh and Jacky became doctors and Himanshu and Luv became Engineers. All of them had good earnings but they want to start their own business as they were creative and innovative too. Harsh and Jacky gave an idea to manufacture a machine which would help the surgeons in doing medical tests in no time and also help in doing surgery without much blood loss. Himanshu and Luv liked the idea very much and agreed to it, but soon they all realized that were not having enough of capital to start the business. They estimated that approximately ₹3 crore would be required to finance the project, which would be collected by them from their friends and relatives. They also wanted that their private properties should not be used to pay off the liabilities of the business. Which suitable ‘type of business organisation’ to be formed by Harsh, Jacky, Himanshu and Luv?
(a) Partnership
(b) Sole proprietor
(c) Joint stock company
(d) Cooperative Society 

Correct Answer is Option (c)
Joint stock company is suitable form of business organisation where the owners want limited liability and huge capital.


Q.59: Trilochan, an entrepreneur wants to start an industry to manufacture scooter ‘Pawan Putra’ in rural area of Rajasthan where very less employment opportunities are available. He wants to fix a very low and reasonable price for this scooter as compared to his competitors so that lower income group people can afford to buy this. For this, he thought to prepare ________ business plan with the objective of picturising ahead every step in a long series of separate operations, each step to be taken in the right place in the right degree, and at the right time and each operation to be done at maximum efficiency.
(a) Production
(b) Organizational
(c) Human resource
(d) Marketing 

Correct Answer is Option (a)
The objective of the production plan is to plan the work in a manner that each step to be taken in the right place, right degree, right time and more efficiently.


Q.60: Shillong is famous for its pristine beauty. Ariel Pvt. Ltd. wanted to build an eco-friendly 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 is their duty to educate the present generation about Do-it yourself projects. This will bring awareness about saving our environment for a better future. She put her idea before the venture capitalists by making an entertaining slide show and oral narration. She also presented the executive summary of her proposed venture and a few key graphs. The format of business plan used by:
(a) Elevator Pitch
(b) A pitch deck with oral narrative
(c) A written presentation for external stakeholders
(d) An internal operational plan

Correct Answer is Option (b)
A pitch deck with oral narrative is an entertaining slide show or a presentation that is meant to interest the potential investors in reading the written presentation.

The document Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 3 Notes | Study Sample Papers for Class 12 Commerce - Class 12 is a part of the Class 12 Course Sample Papers for Class 12 Commerce.
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