Class 12 Entrepreneurship: CBSE Sample Question Papers- Term I (2021-22)- 4 | Sample Papers for Class 12 Commerce PDF Download

Class - XII

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.

Q.1: "Self-help as well as mutual help system." Identify the form of business organisation being talked about in the given sentence:
(a) Partnership
(b) Sole Proprietorship
(c) Cooperative Society
(d) Joint Hindu Family Business

Correct Answer is Option (c)
A co-operative society is a different form of business enterprise as here; the main motive is not earning profit but mutual help. It works with the principle of each for all and all for each.

Q.2: Storing the goods when not required and supplying them when required. In the given statement a business creates which kind of utility?
(a) form utility
(b) place utility
(c) time utility
(d) possession utility

Correct Answer is Option (c)
Storing the goods when not required and supplying them when required is creation of time utility.

Q.3: Raghav decides to make a device which can judge the sugar levels of the diabetic patients without using blood. Identify the idea field used by Raghav.
(a) service-based
(b) trading based
(c) creative efforts
(d) natural resources

Correct Answer is Option (c)
Creative Solutions to society's problem is a major field of business idea a new manufacturing process improve quality new uses of product or a new market a few examples of Creative efforts.

Q.4: The maximum number of members in a partnership can be:
(a) 20
(b) 25
(c) 50
(d) 90

Correct Answer is Option (c)
The minimum number of partners is to maximum number of partners in a partnership firm can be hundred subject to the number prescribed by the government at present the maximum number of members can be 50.

Q.5: The business ideas can be generated through various sources. These sources include:
(a) brainstorming
(b) using hobbies to generate ideas
(c) seeking assistance from entrepreneurs
(d) All of these

Correct Answer is Option (d)
There are several ways through which ideas can be generated like brainstorming, doing market research, gathering information from publications, using hobbies to generate ideas, seeking assistance from entrepreneurs, daydreaming and fantasizing, talking and listening to people.

Q.6: Death, retirement, insolvency can bring an end or closure to the business. This statement is true in respect of which business organisation?
(a) sole proprietorship
(b) partnership 
(c) both (a) and (b)
(d) None of these

Correct Answer is Option (c)

Q.7: The Seeding stage of an idea in the creative process is known as :
(a) idea germination 
(b) preparation
(c) incubation
(d) illumination

Correct Answer is Option (a)
Idea germination is the stage known as the seeding stage in the creative process. The idea is seeded due to a person's interest or curiosity about a specific problem.

Q.8: Lakshya opens up a warehouse and rent the storage space to various traders. Which type of business activity is he into?
(a) Manufacturing
(b) Trading
(c) Service
(d) Both (a) & (b)

Correct Answer is Option (c) 
The service sector provides the basic infrastructure required for the smooth flow of manufacturing and trading activities.

Q.9: Ritu has completed her B.Tech in textile designing. She wants to start a readymade garments manufacturing unit. She wants to manufacture trendy garments for children below the age of one year. In order to spot trends in the market she decided to talk to the parents of newly born. Identify the method that Ritu adopted to spot the trend.
(a) Read Trend
(b) Talk Trend
(c) Think Trend 
(d) Watch Trend

Correct Answer is Option (b)
Entrepreneur get involved in specific industry’s trade association and in attending events and in talking to customers both online and offline. They also take advantage of social networking tools like LinkedIn and Facebook.

Q.10: At break-even point:
(a) Total revenue is greater than total cost
(b) Total cost is greater than total revenue
(c) Total revenue is equal to the total cost
(d) Total revenue and total cost is equal to zero

Correct Answer is Option (c)
At BEP a business earns no profit no loss. Therefore, total revenue is equal to the total cost.

Q.11: A worldwide distribution network is _______________ of Coca-Cola Corporation.
(a) Strength
(b) Weakness
(c) Opportunity
(d) Threat

Correct Answer is Option (a)
Strength is a capability which enables an organisation to gain an advantage over its competitors.

Q.12: In which of the following form of Organisation minors can be members? 
(a) Partnership 
(b) Joint Hindu family business 
(c) Joint stock company 
(d) Cooperative society

Correct Answer is Option (b)
In a joint Hindu family business a male child become a member by birth. Therefore, minors can be members in HUF.

Q.13: The process of generation of ideas can be streamlined by developing an awareness for different_______.
(a) Problems
(b) Idea fields
(c) Trends
(d) None of these

Correct Answer is Option (b)
Idea fields are well defined frames of reference that guide the generation of ideas. Entirely new products or service-related ideas can be generated from these resources or ideas to supplement these natural resources can be derived.

Q.14: If an entrepreneur wants to start a business with Limited amount of capital and small size of enterprise. Which form of business organisation should he prefer?
(a) Sole Proprietorship
(b) Joint Stock Company
(c) Hindu Undivided family
(d) Cooperative society

Correct Answer is Option (a)
Sole proprietorship form of business is suitable when limited amount of capital is required, local market is required, secrecy of business is necessary, quick decision making is needed and size of enterprise is small.

Q.15: Introduction of Vim Gel for cleaning utensil is an example of : 
(a) Innovation 
(b) Verification 
(c) Identification 
(d) Illumination

Correct Answer is Option (a)
Innovation involves application of new ideas in the form of new products services or processes.

Q.16: Every idea is not a business opportunity an idea can become an opportunity only when:
(a) It is technically feasible
(b) It is commercially viable
(c) Both (a) and (b)
(d) None of these

Correct Answer is Option (c)

Q.17: In which type of enterprise the entire or more than 51 percent of the investments are made by the central or state government?
(a) Public sector enterprise
(b) Private sector enterprise
(c) Joint sector enterprise
(d) None of these

Correct Answer is Option (a)
In public sector Enterprise entire or majority of the investments are made by central or state government. These enterprises aim at public welfare and profit is their secondary goal.

Q.18: Which of the following is not true for entrepreneurs?
(a) Entrepreneurs perceive opportunities quickly
(b) Entrepreneurs are not responsible for the success and failure of the Enterprise
(c) Entrepreneurs sense the business opportunity from the needs and problems of the people.
(d) All of these

Correct Answer is Option (b)
Entrepreneurs are the only one responsible for the failure or success of their venture.

Q.19: A _______ is an attractive economic idea which could be implemented to create a business, earn profit and ensure future growth.
(a) Business Opportunity
(b) Idea Germination
(c) Innovation
(d) Creativity

Correct Answer is Option (a)

Q.20: Hindustan Unilever Colgate and some other multinational brands are launching herbal versions of the product to meet the market competition from Patanjali. Which source of idea been used here?
(a) Needs
(b) Problems
(c) Competition
(d) Innovation

Correct Answer is Option (c)
In order to survive in the face of increasing competition business firms comes out with new ideas to compete with their competitors.

Q.21: Which among these is not the objective of the concept problem identification?
(a) It should clearly state the problem.
(b) Identify target group facing the problem.
(c) Monitoring the economic and non-economic environment.
(d) Find the market acceptability of the solution to the problem.

Correct Answer is Option (c)
Objective of problem identification is to find a solution, the group which is facing the problem and whether they’ll accept the problem. While monitoring the economic and noneconomic environment is the concept related to environment analysis.

Q.22: Developing an app for teaching purpose which can be run on mobile phone as well as on PC can be counted under which idea field?
(a) Service sector ideas
(b) Market/ Demand driven ideas 
(c) Creative efforts
(d) Existing products or services

Correct Answer is Option (c)
Creativity is an important and key component of the talents and abilities needed for an entrepreneur. Apart from applying creativity to spot and harness opportunities, it can also be applied to develop new products and services.

Q.23: Alan has observed the market in his area and noticed that the there is a scope for toys for small children. The number of toy shops for such children was very less in his area. He thought of starting a small enterprise for the same. He also ensured that the business will require 1-2 boys in the shop as helpers and an investment of around ₹ 2 lakh. He is expecting around 30-40% annual return on investment. Identify which entrepreneurship concept is being discussed in the paragraph.
(a) Innovation
(b) Business Opportunity 
(c) Investment purpose
(d) Competition

Correct Answer is Option (c)
A business opportunity is an attractive economic idea which could be implemented to create a business, earn profits and ensure further growth.

Q.24: Which of the following is true for “Unit of Sale”?
(a) It is the measure of what products are sold.
(b) It is required to understand the economies of a business in an easy and standardized manner.
(c) Both (a) and (b)
(d) None of these

Correct Answer is Option (c)
Unit of sales can be defined as the measure of what products are sold. Unit of sales is required to understand the economies of a business in an easy and standardized manner.

Q.25: Arun started a factory for manufacturing shoes. He invested ₹ 5,00,000 of his own and for the rest of the amount he obtained loan from a bank. He made a detailed plan describing the details needed for the operation of machines by the workers. Identify the “business plan” described above.
(a) Elevator Pitch
(b) Pitch deck with oral narratives
(c) Internal Operational Plan
(d) Written Presentation

Correct Answer is Option (c)
An internal operational plan contains planning details for the guidance of management and workers.

Q.26: Assertion (A): The sole proprietor has limited liability.
Reason (R): A sole proprietor will be responsible for all the costs and debts of their business.
(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.

Correct Answer is Option (d)
In the sole proprietorship business, the sole owner has unlimited liability. Unlimited liability means that in case the enterprise incurs losses, the private property of the proprietor can also be utilized for meeting the business obligations to outside parties.

Q.27: Anuj, after passing his XII Examination went to Pune for studying Law. On completion of his course he tried to get a job in the same city but could not get the same. He, therefore decided to set up his own law firm and practice as a lawyer. Initially it was tough for him to get clients but he worked hard and made his name. Now that he is successful he charges a handsome fee for his services.
Identify the type of economic activity undertaken by Anuj. 
(a) Business 
(b) Profession 
(C) Employment 
(D) None of these 

Correct Answer is Option (b)
Profession an economic activity which involves application of specialised knowledge and skills to earn a living. Doctors, Lawyers, Chartered Accountants etc. are few examples of profession.

Q.28: Pintu runs a company that sells ball pens. They first determined the fixed costs, which included property tax, salaries, etc. which sums up to 1,00,000. The variable cost for manufacturing a pen is ₹ 2 per unit. Hence, they sell the pen at a price of ₹ 10. If one has to determine the break-even point, that would come up to:
(a) ₹ 15,000
(b) ₹ 12,500
(c) ₹ 10,000
(d) ₹ 8,000

Correct Answer is Option (b)

Q.29: There are two businessmen with the same qualification or same product but the first one has an edge over the other businessmen due to his skill and ability to think, imagine and do the things differently. Out of the following, identify the quality of the entrepreneur discussed here: 
(a) Creativity 
(b) Honesty 
(c) Leadership 
(d) Reliability

Correct Answer is Option (a)

Q.30: Arvind planned to start a small fast-food joint in his area after finishing his degree in hospitality management. His plan was to combine and use healthy ingredients like whole wheat flour to make the burger buns. He knew that he had to start collecting information from different sources which will help him to identify the right opportunity to start his business. From where will Arvind get the necessary information?
(a) Magazines
(b) Shows
(c) Family Members
(d) All of these

Correct Answer is Option (d)
Various sources like magazines, journals, books, seminars, trade shows, family members, customers, friends etc. help in getting information that helps in evolution of basic ideas. Bring together various sources of information and knowledge, and analyze it to the best possible extent. The analysis helps in the identification of the right opportunity to start a new business.

Q.31: Match these business organisation with their characteristics:

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

Correct Answer is Option (b)

Q.32: Paridhi launched a new cosmetic brand of her own. She plans about how her venture will compete and operate in its target market. She also decides her specific goals, strategies and the potential threats and opportunities in the market. Which element of the business plan is Paridhi working on? 
(a) Organisational Plan
(b) Human Resource Plan
(c) Marketing Plan
(d) Financial Plan

Correct Answer is Option (c)
Marketing plan describes the marketing strategies and programmes concerning the product or service, its price, promotion and distribution. It also describes the opportunities, threats and marketing strengths and weaknesses.

Q.33: As per the following information, what be the Sale to earn profit of ₹ 2,40,000.

(a) ₹ 2,40,000
(b) ₹ 2,00,000
(c) ₹ 24,00,000
(d) ₹ 20,00,000

Correct Answer is Option (d)
Contribution = Sales – Variable cost
= ₹ 8,00,000 – ₹ 5,60,000    
= ₹ 2,40,000


Sales to earn a profit of ₹ 2,40,000

Q.34: Toy Craft produces toy alligators and toy dolphin. Fixed costs are ₹ 75,000 per year.

The weighted contribution for the products will be ___________________.
(a) ₹ 50 
(b) ₹ 130 
(c) ₹ 120
(d) ₹ 110

Correct Answer is Option (b)

Q.35: Match the following: 

(a) 1 – (i), 2 – (ii), 3 – (iii), 4 – (iv)
(b) 1 – (iii), 2 – (iv), 3 – (i), 4 – (ii)
(c) 1 – (iii), 2 – (i), 3 – (iv), 4 – (ii)
(d) 1 – (iii), 2 – (ii), 3 – (iv), 4 – (a)

Correct Answer is Option (c)

Q.36: Assertion (A): Incubation is the subconscious assimilation of information.
Reason (R): In this stage, entrepreneur recognizes that an opportunity exists.
(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.

Correct Answer is Option (c)
Incubation is the transition period. The entrepreneur starts thinking about the idea and implementation in his/ her sub-conscious mind.

Q.37: Wipro Technologies have a widespread global client network. It has mega partnership with Microsoft, Oracle and other big industries. The downfall in one economy can be pacified by performing well in other economy. Which element of SWOT has been highlighted here for Wipro.
(a) Strengths
(b) Weakness
(c) Opportunity
(d) Threats

Correct Answer is Option (a)
The capabilities of the company have been highlighted which enables the organisation to gain an advantage over others.

Q.38: One of the keys to business success is to anticipate what the market will want or need before the entrepreneurs are aware of it themselves. Since it’s unlikely for an entrepreneur to see into the future, the best way to do this is to become a_________.
(a) Business man
(b) Industrialist 
(c) Trend-spotter
(d) Innovator 

Correct Answer is Option (c)
Trend spotting means identification of new trends which helps entrepreneur to understand the market and produce goods or provide services in sync with the market trends.

Q.39: Social behaviour is related with the:
(a) Fulfilment of social obligations 
(b) Production of public goods
(c) Ignorance of unethical behaviour
(d) All of these 

Correct Answer is Option (d)

Q.40: Rushali wants to expand her business from a small beauty parlour to unisex saloon. While moving forwarded towards her thought, she realised that one of the first tasks demanded of an entrepreneur is to manifest creative ability through the conceiving of new product-market opportunities and unique value propositions. Which step is termed as the first step in innovation process?
(a) Creativity 
(b) Analytical planning
(c) Idea germination
(d) Verification

Correct Answer is Option (a)
Creativity provides stimulus for opportunity discovery and new venture creation.

Q.41: Which plan formulates the marketing strategies, objectives, and activities to be followed by any enterprise?
(a) Financial Plan
(b) Marketing Plan
(c) Organisational Plan
(d) Operational Plan

Correct Answer is Option (b) 
A Marketing Plan is a guideline regarding the marketing objectives, strategies and activities to be followed by any enterprise.

Q.42: “Entrepreneurs take advantage of social networking tools like social network websites and forums”. In the above line, which trend is entrepreneur spotting?
(a) Read trend
(b) Talk trend 
(c) Think trend
(d) None of these

Correct Answer is Option (b) 
Entrepreneur get involved in specific industry’s trade association and in attending events and in talking to customers both online and offline. They also take advantage of social networking tools like LinkedIn and Facebook.

Q.43: Social behaviour is related with the:
(a) Fulfilment of social obligations
(b) Production of public goods
(c) Ignorance of unethical behaviour
(d) All of these

Correct Answer is Option (d)

Q.44: Vishnu started his factory for manufacturing plastic items in Daman. As per the advice of his Manager, he appointed ‘Bizmadeeasy’ company to formulate a business plan for his manufacturing unit. The company in its business plan, mentioned the cost of installing a water waste treatment plant within the premises of the manufacturing unit. Which of the following is the socio-economic benefit expected to acquire from the proposed investment. 
(a) Employment generation 
(b) Import substitution 
(c) Ancillarisation 
(d) All of these 

Correct Answer is Option (d)

Q.45: North-west Airlines started their operations from India to various parts of the country in the year 2015. The company had been successful in its operations as more people preferred to travel by air due to change in the lifestyle and attitude towards work and leisure. It is ___________ factor as per PESTEL model.
(a) Social
(b) Economic
(c) Technological
(d) Political

Correct Answer is Option (a)
The social environment factors include population demographics, income distribution, lifestyle changes, level of education and attitudes of people towards work and leisure. This factor is a part of PESTEL Model.

Q.46: Which of the following statement is correct with respect to partnership?
(a) The liability of the partners of a firm is limited.
(b) The relation of partnership arises from status. 
(c) Minors can form a partnership firm.
(d) Every partner is principal as well as agent of other partners.

Correct Answer is Option (d)
The business of partnership can be carried on by all the partners or any one of them acting for all. Thus, every partner is principal as well as the agent of other partners.

Q.47: A business plan has sub-plans related to which of the following:
(a) Production
(b) Documents 
(c) Legal
(d) All of these

Correct Answer is Option (c)
A business plans is a comprehensively written document prepared by an entrepreneur, which has sub-plans related to Marketing, Finance, Operations, Human and Legal.

Q.48: In a sugar mill in UP, jaggery is produced using cane. The mill owner is unable to decide whether to continue with his subsidiary or not. The monthly output of the subsidiary is 2,500 kg. Sales price ₹ 100/kg, Variable cost ₹ 30/kg, Fixed expenses ₹ 70,000. The mill owner is trying to find out the breakeven point in units. It will be:
(a) 7,500 units
(b) 10,000 units
(c) 1,500 units
(d) 1,000 unit

Correct Answer is Option (d)
BEP = Fixed Cost/ Sales price - variable cost
= ₹ 70,000/100 - 30
= ₹ 70,000/70
= ₹ 1000

Q.49: Sunny was a dry fruit vendor used to give door to door deliveries to the people in his locality, he used to work for 8 hours a day for seven days a week slowly he started earning well. Sunny then decided to start a shop of his own where he would keep all other general store items also with dry fruits and register as a sole proprietor. He is unaware of legal formalities for a registered sole proprietor. He appoints you as his advisor as you have done MBA. Which of these are the part of legal formalities for a sole proprietorship registration? 
(a) Business name 
(b) Tax registration 
(c) Profits of previous years 
(d) Only (a) & (b)

Correct Answer is Option (d)
In order to start a sole proprietorship an entrepreneur requires certain industry specific licenses. A few general factors are 1. Business name, 2. Service tax registration, 3. VAT/CST registration, 4. Others, 5. Payment of taxes.

Q.50: Since Ritesh Agarwal used to travel a lot, amid his trips, he stayed in different hotels. This gave him a realization about the poor hospitality facilities he got at different places. This motivated him to create an accommodation system where people can get the best rooms, food, staff, and other services in a given budget. He created Oravel Stays in 2011, an aggregator of breakfast and bed stays, inspired by Airbnb’s model.
In 2013, Oravel Stays was relaunched as OYO Hotels & Homes to create India’s largest chain of affordable, standardized hotels. What are the two criteria ensured by Ritesh before selecting an opportunity, which the entrepreneur has to ensure?
(a) Risk and Reward
(b) Market for product & return on investment
(c) Alternate business & Shut down point
(d) All of these

Correct Answer is Option (b)
Before selecting an opportunity, the entrepreneur has to ensure two things: 

• There is a good market for the product he is going to produce. 
• The rate of return on the investment is attractive to be accepted by him.

Q.51: Aman’s father is a government employee wanted his son to join any government service but Aman had different ideas he was more interested in the financial markets he along with his friends Sahil and Vinay started a trading firm. The company’s main business was to consult people who wanted to invest their money in different class of assets. The profit or loss earned by all were attributed equally after making the Profit and Loss A/c. What form of business enterprise is this? 
(a) Joint stock company
(b) Public enterprise
(c) Co-operative society
(d) Partnership

Correct Answer is Option (d)
A partnership is an association of two or more persons to carry on, as coowners, a business and to share its profits and losses.

Q.52: Brahama, Vishnu and Mahesh started a business together of manufacture dolls, the firm was named Earth Ltd. They agreed to share the profits and losses equally. They signed a contract where the terms of working were mentioned – Brahama will look after the manufacturing and design of the dolls. Vishnu would deal with the suppliers and buyers and Mahesh would look after the logistics and after sales service. The business was running smoothly because of the agreement signed by them as no one used to interfere in each other’s work and soon they became the market leaders.
The agreement signed by Brahama, Vishnu and Mahesh above is called :
(a) Contract
(b) Partnership agreement
(c) Partnership deed 
(d) Pact

Correct Answer is Option (c)
Partnership deed is an agreement between the partners of a firm that outlines the terms and conditions of partnership among the partners.

Q.53: Aman, Meena, Smruti, Sankalp age 24 yrs, 29 yrs, 27 yrs, 25 yrs respectively are four children of Sarthak the Karta of a HUF. One night Sarthak suffered a cardiac attack and died. He did not have any will or any declaration for his successor of the HUF. Who will become the new Karta of the HUF?
(a) Meena
(b) Aman
(c) Sankalp
(d) Smruti

Correct Answer is Option (c)
A male member becomes a member merely by his birth. By adoption, an outsider can be admitted to its membership but not otherwise. The senior most male member of the family known as 'Karta' manages the affairs, having unlimited powers. The other male members called 'Coparceners' have no right to deal with outsiders or inspect accounts.

Q.54: Sohan is working with Ram, a new entrepreneur, as a Marketing Manager. For smooth and coordinated flow of work, he had to pay attention towards various elements. To maintain the appropriate number of sales, he had to compare various sales methods and reach out different team members. Identify and state the element being discussed above which is related to one of the components of a business plan.
(a) Supervision
(b) Inspection 
(c) Marketing
(d) None of these

Correct Answer is Option (a)
Supervision is a part of a business plan which involves managing a workforce or being in-charge of a group of workers.

Q.55: Aryan started a Super Speciality Store in Gurgaon in 2018. He sourced his products from the small businesses all over India. His business picks up and people started liking the local business products he sells at reasonable prices. By 2020, he started making a good profit and frequently gives bonuses and rewards to his employees. Identify the stage in the process of innovation Aryan is into.
(a) Analytical planning
(b) Organising resources
(c) implementation
(d) Commercial application

Correct Answer is Option (d) 
Commercial application is a stage which involves offering value to the customers, revenues to investors, rewards to employees and satisfaction to the founders.

Q.56: Priya joined a Publication Company that publishes a monthly magazine “Lifestyle”. It covers articles related to fitness, clothing, gadgets, cooking, etc., Priya had joined the clothing division of the magazine. Her divisional head explained her nature of work of the division. She also informed Priya that in addition to visits to local mall she would have to attend ‘Power lunches’ on the first Monday of every month. Out of the following, identify the way of spotting trend, the divisional head is talking about.
(a) Talk trend
(b) Read trend
(c) Watch trend
(d) Think trend

Correct Answer is Option (c)
Watch trend is where ideas are generated through observation and listening.

Q.57: Pankaj is running a Chemist shop under the name ‘Bansal Medicos’ in Ashok Vihar Market. He takes all the decisions about business himself and there is no interference from others. He also earns good profit as a direct reward for his risk bearing. The form of business organisation in which Pankaj is engaged, is ________. 
(a) Company
(b) Sole proprietorship
(c) Partnership
(d) Co-operative

Correct Answer is Option (b)
Form of business organization which is owned financed, controlled and managed by only one person is called as sole proprietorship. All investment is made by the proprietor. The sole proprietor alone is entitled to all the profits and losses of business.

Q.58: Arvind planned to start a small fast-food joint in his area after finishing his degree in hospitality management. His plan was to combine and use healthy ingredients like whole wheat flour to make the burger buns. He knew that he had to start collecting information from different sources which will help him to identify the right opportunity to start his business. From where will Arvind get the necessary information?
(a) Magazines 
(b) Shows
(c) Family Members
(d) All of these

Correct Answer is Option (d)
In order to start a business, an entrepreneur has to identify the opportunity and threats by gathering information from different sources. He may get the information from :
(i) Verbal information from customer, wholesalers, retailers, distributors consultants, etc.
(ii) Records of companies
(iii) Government publications
(iv) Publications by various financial institutions
(v) Formal studies conducted by strategic planners.

Q.59: Anant and Anandi together took over their family business of furniture. They understood that the present competitors were using online means to sell their products. They decided on a new idea of providing furniture on a rental basis to offices and households and to also start making furniture using the traditional method which caught the attention of the new generation. They opened stores in various cities and started selling through online mode also. They both are using the ___________ idea field.
(a) Market driven
(b) Service related
(c) Trading related
(d) None of these

Correct Answer is Option (b)
Service sector is the most growing field these days, the world over, thanks to emerging knowledge societies and advancements in Information and Technology. So, new opportunities can be identified by understanding the linkages to different business activities.

Q.60: Vipin Taneja has completed his Masters degree in Computer Science from IIT, Delhi. He thought of an attractive economic idea which could be implemented to create a business, earn profits and ensure further growth. The idea was to link the different restaurants with the Indian railway network so that while travelling, the railway passengers can order food as per their liking. The elements of the concept discussed above are:
(a) Potential future growth
(b) Assured market scope
(c) An attractive and acceptable rate of return
(d) All of the above

Correct Answer is Option (d)