Class 12 Entrepreneurship: CBSE Sample Question Paper (2022-23) - 1 | Sample Papers for Class 12 Commerce PDF Download

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Sample Question Paper (2022-23) (066) 
Subject: Entrepreneurship 
Class: XII 
 
Time: 3 Hours                    Max Marks: 70 
 
 
General Instructions:  
 
1.The question paper contains 4 sections - A, B, C and D  
     1.1. Section A contains Multiple choice questions  
     1.2. Section B - 2 marks  
     1.3. Section C - 3 marks  
     1.4. Section D - 5 marks  
 
2. Internal choice is given in the paper, there is no overall choice. 
 
S. No. Question Marks  
Section A 
1 Given below are the factors necessary for developing a successful idea. 
Identify the correct combinations from the given options.  
 
a. Skills and Knowledge  
b. Trends and demand  
c. Skills, Knowledge and competencies  
d. Trends, demand and change  
1 
2 ‘Polymer Ltd’ decided to diversify into manufacturing pipes and plastic 
household products apart from their water tanks business. Their finance and 
marketing department decided to adopt any of the two pricing strategies –  
i. adding a certain percentage of profit to the cost of production  
ii. selling at a lesser amount so as to capture a huge market. They 
put forward their funding strategy to the CEO.  
The suggested pricing strategies are: 
1.  Cost-plus pricing  
2.  Skimming pricing  
3.   Penetration pricing  
4.  Competitive pricing 
 
1 
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1 | P a g e 
 
Sample Question Paper (2022-23) (066) 
Subject: Entrepreneurship 
Class: XII 
 
Time: 3 Hours                    Max Marks: 70 
 
 
General Instructions:  
 
1.The question paper contains 4 sections - A, B, C and D  
     1.1. Section A contains Multiple choice questions  
     1.2. Section B - 2 marks  
     1.3. Section C - 3 marks  
     1.4. Section D - 5 marks  
 
2. Internal choice is given in the paper, there is no overall choice. 
 
S. No. Question Marks  
Section A 
1 Given below are the factors necessary for developing a successful idea. 
Identify the correct combinations from the given options.  
 
a. Skills and Knowledge  
b. Trends and demand  
c. Skills, Knowledge and competencies  
d. Trends, demand and change  
1 
2 ‘Polymer Ltd’ decided to diversify into manufacturing pipes and plastic 
household products apart from their water tanks business. Their finance and 
marketing department decided to adopt any of the two pricing strategies –  
i. adding a certain percentage of profit to the cost of production  
ii. selling at a lesser amount so as to capture a huge market. They 
put forward their funding strategy to the CEO.  
The suggested pricing strategies are: 
1.  Cost-plus pricing  
2.  Skimming pricing  
3.   Penetration pricing  
4.  Competitive pricing 
 
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a. 1,2 
b. 2,3 
c. 3,4 
d. 1,3 
3 Which amongst the following values would help an entrepreneur to 
determine the Return on Investment? 
 
1. Net Profit 
2. Gross Profit 
3. Inventory carrying cost per unit. 
4. Total Capital Invested 
5. Weighted average contribution 
 
a. 2,3,5 
b. 1,4 
c. 1,2,3 
d. 2,3 
1 
4 In the year 2012, the social media application “Chowpal” acquired “Socialite” 
at a purchase value of $1 billion. Both the entities operated in the social media 
industry and offered similar products as part of their photo-sharing services. 
However, Chowpal intended to further bolster its market position in the social 
media space, and the acquisition of Socialite exactly fitted in its scheme of the 
plan. The merger eventually helped Chowpal in increasing its market share, 
eliminating competition, and gaining access to a wider audience. Identify the 
type of merger: 
a. Vertical merger 
b. Horizontal merger 
c. Market extension merger 
d. Product extension merger 
1 
5 Ashwin was working as Director Finance in Ambur Metal Works. Managing 
Director of the Company Kailash asked Ashwin to draft a proforma 
investment decision plan enlisting the funds which should be invested in 
different assets so that the company can get the highest possible returns. 
From the following identify the reason(s) that would help Ambur Metal 
Works. 
 
i. It will help the company to understand the total amount of funds required.  
1 
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1 | P a g e 
 
Sample Question Paper (2022-23) (066) 
Subject: Entrepreneurship 
Class: XII 
 
Time: 3 Hours                    Max Marks: 70 
 
 
General Instructions:  
 
1.The question paper contains 4 sections - A, B, C and D  
     1.1. Section A contains Multiple choice questions  
     1.2. Section B - 2 marks  
     1.3. Section C - 3 marks  
     1.4. Section D - 5 marks  
 
2. Internal choice is given in the paper, there is no overall choice. 
 
S. No. Question Marks  
Section A 
1 Given below are the factors necessary for developing a successful idea. 
Identify the correct combinations from the given options.  
 
a. Skills and Knowledge  
b. Trends and demand  
c. Skills, Knowledge and competencies  
d. Trends, demand and change  
1 
2 ‘Polymer Ltd’ decided to diversify into manufacturing pipes and plastic 
household products apart from their water tanks business. Their finance and 
marketing department decided to adopt any of the two pricing strategies –  
i. adding a certain percentage of profit to the cost of production  
ii. selling at a lesser amount so as to capture a huge market. They 
put forward their funding strategy to the CEO.  
The suggested pricing strategies are: 
1.  Cost-plus pricing  
2.  Skimming pricing  
3.   Penetration pricing  
4.  Competitive pricing 
 
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a. 1,2 
b. 2,3 
c. 3,4 
d. 1,3 
3 Which amongst the following values would help an entrepreneur to 
determine the Return on Investment? 
 
1. Net Profit 
2. Gross Profit 
3. Inventory carrying cost per unit. 
4. Total Capital Invested 
5. Weighted average contribution 
 
a. 2,3,5 
b. 1,4 
c. 1,2,3 
d. 2,3 
1 
4 In the year 2012, the social media application “Chowpal” acquired “Socialite” 
at a purchase value of $1 billion. Both the entities operated in the social media 
industry and offered similar products as part of their photo-sharing services. 
However, Chowpal intended to further bolster its market position in the social 
media space, and the acquisition of Socialite exactly fitted in its scheme of the 
plan. The merger eventually helped Chowpal in increasing its market share, 
eliminating competition, and gaining access to a wider audience. Identify the 
type of merger: 
a. Vertical merger 
b. Horizontal merger 
c. Market extension merger 
d. Product extension merger 
1 
5 Ashwin was working as Director Finance in Ambur Metal Works. Managing 
Director of the Company Kailash asked Ashwin to draft a proforma 
investment decision plan enlisting the funds which should be invested in 
different assets so that the company can get the highest possible returns. 
From the following identify the reason(s) that would help Ambur Metal 
Works. 
 
i. It will help the company to understand the total amount of funds required.  
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ii. It will also help the company to assess the situation as to whether they 
have excess or inadequate funds. 
iii. It helps the company to understand the various sources of funds  
iv. It helps the company to reflect the position of the business at the end of 
every year  
 
a. i only 
b. i and ii only 
c. i and iii only 
d. i, ii, and iii only 
6 Mayank, a small entrepreneur, is manufacturing LED lamps with the brand 
name 'Led-amps`". These lamps are in great demand. He finds that the cost 
of production per unit of the lamp is ? 800 and he can sell the same at ?1000 
per lamp. The competitors in the market are selling this type of lamp at the 
rate of 1200. Mayank's objective is not to earn profit in the short-run but to 
capture the largest market share. His expectation is that the customers will be 
attracted towards the new brand because of the lower price. 
Identify the method of pricing adopted by Mayank to capture the substantial 
portion of the market.  
 
a. Cost plus Pricing  
b. Penetration Pricing  
c. Skimming Pricing  
d. Variable pricing  
1 
7 Given below are information obtained from the balance sheet of PQR ltd., 
What will be the gross working capital for PQR ltd. for the year ending 31
st
 
March 2022? 
 
Assets:  
(in Rupees) 
i. Cash- 60,000 
ii. Stock- 50,000 
iii. Trade Debtors- 65,000 
iv. Short term investment- 15,000 
 
Liabilities: 
(in Rupees) 
i. Short term loans- 25,000 
ii. Trade creditors- 5,000 
iii. Outstanding expenses- 10,000 
 
a.  40,000 
1 
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Sample Question Paper (2022-23) (066) 
Subject: Entrepreneurship 
Class: XII 
 
Time: 3 Hours                    Max Marks: 70 
 
 
General Instructions:  
 
1.The question paper contains 4 sections - A, B, C and D  
     1.1. Section A contains Multiple choice questions  
     1.2. Section B - 2 marks  
     1.3. Section C - 3 marks  
     1.4. Section D - 5 marks  
 
2. Internal choice is given in the paper, there is no overall choice. 
 
S. No. Question Marks  
Section A 
1 Given below are the factors necessary for developing a successful idea. 
Identify the correct combinations from the given options.  
 
a. Skills and Knowledge  
b. Trends and demand  
c. Skills, Knowledge and competencies  
d. Trends, demand and change  
1 
2 ‘Polymer Ltd’ decided to diversify into manufacturing pipes and plastic 
household products apart from their water tanks business. Their finance and 
marketing department decided to adopt any of the two pricing strategies –  
i. adding a certain percentage of profit to the cost of production  
ii. selling at a lesser amount so as to capture a huge market. They 
put forward their funding strategy to the CEO.  
The suggested pricing strategies are: 
1.  Cost-plus pricing  
2.  Skimming pricing  
3.   Penetration pricing  
4.  Competitive pricing 
 
1 
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a. 1,2 
b. 2,3 
c. 3,4 
d. 1,3 
3 Which amongst the following values would help an entrepreneur to 
determine the Return on Investment? 
 
1. Net Profit 
2. Gross Profit 
3. Inventory carrying cost per unit. 
4. Total Capital Invested 
5. Weighted average contribution 
 
a. 2,3,5 
b. 1,4 
c. 1,2,3 
d. 2,3 
1 
4 In the year 2012, the social media application “Chowpal” acquired “Socialite” 
at a purchase value of $1 billion. Both the entities operated in the social media 
industry and offered similar products as part of their photo-sharing services. 
However, Chowpal intended to further bolster its market position in the social 
media space, and the acquisition of Socialite exactly fitted in its scheme of the 
plan. The merger eventually helped Chowpal in increasing its market share, 
eliminating competition, and gaining access to a wider audience. Identify the 
type of merger: 
a. Vertical merger 
b. Horizontal merger 
c. Market extension merger 
d. Product extension merger 
1 
5 Ashwin was working as Director Finance in Ambur Metal Works. Managing 
Director of the Company Kailash asked Ashwin to draft a proforma 
investment decision plan enlisting the funds which should be invested in 
different assets so that the company can get the highest possible returns. 
From the following identify the reason(s) that would help Ambur Metal 
Works. 
 
i. It will help the company to understand the total amount of funds required.  
1 
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ii. It will also help the company to assess the situation as to whether they 
have excess or inadequate funds. 
iii. It helps the company to understand the various sources of funds  
iv. It helps the company to reflect the position of the business at the end of 
every year  
 
a. i only 
b. i and ii only 
c. i and iii only 
d. i, ii, and iii only 
6 Mayank, a small entrepreneur, is manufacturing LED lamps with the brand 
name 'Led-amps`". These lamps are in great demand. He finds that the cost 
of production per unit of the lamp is ? 800 and he can sell the same at ?1000 
per lamp. The competitors in the market are selling this type of lamp at the 
rate of 1200. Mayank's objective is not to earn profit in the short-run but to 
capture the largest market share. His expectation is that the customers will be 
attracted towards the new brand because of the lower price. 
Identify the method of pricing adopted by Mayank to capture the substantial 
portion of the market.  
 
a. Cost plus Pricing  
b. Penetration Pricing  
c. Skimming Pricing  
d. Variable pricing  
1 
7 Given below are information obtained from the balance sheet of PQR ltd., 
What will be the gross working capital for PQR ltd. for the year ending 31
st
 
March 2022? 
 
Assets:  
(in Rupees) 
i. Cash- 60,000 
ii. Stock- 50,000 
iii. Trade Debtors- 65,000 
iv. Short term investment- 15,000 
 
Liabilities: 
(in Rupees) 
i. Short term loans- 25,000 
ii. Trade creditors- 5,000 
iii. Outstanding expenses- 10,000 
 
a.  40,000 
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b. 1,90,000 
c. 1,50,000 
d. 2,30,000 
 
8 The entrepreneurs have an option to brand their product alpha-numerically, 
as it signifies: 
a. Chemical characteristics 
b. Physical characteristics 
c. Neutral characteristics 
d. Mathematical characteristics 
1 
9 A grocery owner has an equity stake of ? 40,000/- in the business. He has 
borrowed ? 60,000/- at the interest rate of 10% per annum. He made a net 
profit of ?  20,000/- in one year. 
What will be the Return on Equity for the grocery owner? 
a. 20% 
b. 30% 
c. 35% 
d. 50% 
1 
10 Assertion(A): Customers are part of the micro environment.  
Reason(R): Micro environment does not operate in isolation and is one of the 
levels of business environment. 
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 
11 Who plays a very vital role as a financial intermediary? 
 
a. Primary Market 
b. Capital Market 
c. Stock Market 
d. Securities and Exchange Board of India. 
 
1 
12 Assertion (A): In franchising there is usually a much higher likelihood of 1 
Page 5


1 | P a g e 
 
Sample Question Paper (2022-23) (066) 
Subject: Entrepreneurship 
Class: XII 
 
Time: 3 Hours                    Max Marks: 70 
 
 
General Instructions:  
 
1.The question paper contains 4 sections - A, B, C and D  
     1.1. Section A contains Multiple choice questions  
     1.2. Section B - 2 marks  
     1.3. Section C - 3 marks  
     1.4. Section D - 5 marks  
 
2. Internal choice is given in the paper, there is no overall choice. 
 
S. No. Question Marks  
Section A 
1 Given below are the factors necessary for developing a successful idea. 
Identify the correct combinations from the given options.  
 
a. Skills and Knowledge  
b. Trends and demand  
c. Skills, Knowledge and competencies  
d. Trends, demand and change  
1 
2 ‘Polymer Ltd’ decided to diversify into manufacturing pipes and plastic 
household products apart from their water tanks business. Their finance and 
marketing department decided to adopt any of the two pricing strategies –  
i. adding a certain percentage of profit to the cost of production  
ii. selling at a lesser amount so as to capture a huge market. They 
put forward their funding strategy to the CEO.  
The suggested pricing strategies are: 
1.  Cost-plus pricing  
2.  Skimming pricing  
3.   Penetration pricing  
4.  Competitive pricing 
 
1 
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a. 1,2 
b. 2,3 
c. 3,4 
d. 1,3 
3 Which amongst the following values would help an entrepreneur to 
determine the Return on Investment? 
 
1. Net Profit 
2. Gross Profit 
3. Inventory carrying cost per unit. 
4. Total Capital Invested 
5. Weighted average contribution 
 
a. 2,3,5 
b. 1,4 
c. 1,2,3 
d. 2,3 
1 
4 In the year 2012, the social media application “Chowpal” acquired “Socialite” 
at a purchase value of $1 billion. Both the entities operated in the social media 
industry and offered similar products as part of their photo-sharing services. 
However, Chowpal intended to further bolster its market position in the social 
media space, and the acquisition of Socialite exactly fitted in its scheme of the 
plan. The merger eventually helped Chowpal in increasing its market share, 
eliminating competition, and gaining access to a wider audience. Identify the 
type of merger: 
a. Vertical merger 
b. Horizontal merger 
c. Market extension merger 
d. Product extension merger 
1 
5 Ashwin was working as Director Finance in Ambur Metal Works. Managing 
Director of the Company Kailash asked Ashwin to draft a proforma 
investment decision plan enlisting the funds which should be invested in 
different assets so that the company can get the highest possible returns. 
From the following identify the reason(s) that would help Ambur Metal 
Works. 
 
i. It will help the company to understand the total amount of funds required.  
1 
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ii. It will also help the company to assess the situation as to whether they 
have excess or inadequate funds. 
iii. It helps the company to understand the various sources of funds  
iv. It helps the company to reflect the position of the business at the end of 
every year  
 
a. i only 
b. i and ii only 
c. i and iii only 
d. i, ii, and iii only 
6 Mayank, a small entrepreneur, is manufacturing LED lamps with the brand 
name 'Led-amps`". These lamps are in great demand. He finds that the cost 
of production per unit of the lamp is ? 800 and he can sell the same at ?1000 
per lamp. The competitors in the market are selling this type of lamp at the 
rate of 1200. Mayank's objective is not to earn profit in the short-run but to 
capture the largest market share. His expectation is that the customers will be 
attracted towards the new brand because of the lower price. 
Identify the method of pricing adopted by Mayank to capture the substantial 
portion of the market.  
 
a. Cost plus Pricing  
b. Penetration Pricing  
c. Skimming Pricing  
d. Variable pricing  
1 
7 Given below are information obtained from the balance sheet of PQR ltd., 
What will be the gross working capital for PQR ltd. for the year ending 31
st
 
March 2022? 
 
Assets:  
(in Rupees) 
i. Cash- 60,000 
ii. Stock- 50,000 
iii. Trade Debtors- 65,000 
iv. Short term investment- 15,000 
 
Liabilities: 
(in Rupees) 
i. Short term loans- 25,000 
ii. Trade creditors- 5,000 
iii. Outstanding expenses- 10,000 
 
a.  40,000 
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b. 1,90,000 
c. 1,50,000 
d. 2,30,000 
 
8 The entrepreneurs have an option to brand their product alpha-numerically, 
as it signifies: 
a. Chemical characteristics 
b. Physical characteristics 
c. Neutral characteristics 
d. Mathematical characteristics 
1 
9 A grocery owner has an equity stake of ? 40,000/- in the business. He has 
borrowed ? 60,000/- at the interest rate of 10% per annum. He made a net 
profit of ?  20,000/- in one year. 
What will be the Return on Equity for the grocery owner? 
a. 20% 
b. 30% 
c. 35% 
d. 50% 
1 
10 Assertion(A): Customers are part of the micro environment.  
Reason(R): Micro environment does not operate in isolation and is one of the 
levels of business environment. 
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 
11 Who plays a very vital role as a financial intermediary? 
 
a. Primary Market 
b. Capital Market 
c. Stock Market 
d. Securities and Exchange Board of India. 
 
1 
12 Assertion (A): In franchising there is usually a much higher likelihood of 1 
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success when an individual opens a franchise as opposed to a mom-and-pop 
business. 
 
Reason (R): It runs on a proven business formula that is already in place.  
 
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. 
 
13 Assertion(A): For a trading organization, the operating cycle will be shorter. 
 
Reasoning(R): There is no manufacturing in a trading organization. 
 
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 
 Read the following article written on the basis of reopening of economy 
world wide in various sectors and answer the from question 14- question 
18  
 
E-Commerce –The pandemic has given rise to a “homebody economy”, as 
households make more use of online orders to avoid crowds. Across Europe’s 
largest e-commerce markets - France, Germany, and the UK - purchase 
behavior has evolved. According to a May study by Kantar, 9% of shoppers 
make more online purchases than before; 60% say they will continue to shop 
online after the outbreak; and 80% say they will shop online again for non-
essential items.  
 
Gaming - The pandemic has accelerated existing trends within the gaming 
industry, such as the way gamers purchase and consume, moving from 
packaged games to downloadable content. Another indicator of this shift, 
mobile apps in general have skyrocketed during the crisis and are expected to 
account for 48% of the global games market this year, according to Newzoo’s