Short Type Questions - Entrepreneurial Planning, Entrepreneurship, Class 12 | Additional Study Material for Commerce PDF Download

Q1. What does financial profile indicate ? (3 marks)
Ans. Financial profile indicates the following things :
(i) Cost of Production.
(ii) Profits and losses.
(iii) Revenue to be obtained.
(iv) Stock of Raw Material.
(v) Stock of semi-finished and finished products.
(vi) Loan to be obtained.

Q2. Write the steps in preparing the marketing plan ? (3 marks)
Ans. Procedure for preparing the marketing plan involves following steps :
(i) Business Situation Analysis.
(ii) Identify the Target Market.
(iii) Conduct Swot Analysis.
(iv) Establish Goals.
(v) Define Marketing Strategy.

Q3. State the objectives of a good business plan. (4 marks)
Ans. A good business plan must :
(i) Determine the direction of the company.
(ii) Highlight the challenges in the path of business.
(iii) Be directed towards achievement of goals.
(iv) Formulate strategies to keep the business on track.

Q4. Which common techniques are required to calculate the forecasting income ? (4 marks)
Ans. Following are the most commonly adopted techniques for forecasting :
(i) Marketing research.
(ii) Industry sales.
(iii) Survey of buyer’s intentions.

(iv) Expert opinions.
(v) Trial experience.
(vi) Financial data of similar start-ups.

Q5. Define Organizational Plan ? A business can be classified in how many categories ? (4 marks)
Ans. Organizational plan is a part of the business plan that describes the proposed venture’s form of ownership.
Business can be classified as :
(i) Manufacturing Business : Making of a tangible product.
(ii) Wholesale Business : Buying of goods/products in bulk directly from the manufacturers and further sold to the retailers in small lots.
(iii) Retail Business : Selling product directly to the final consumer.
(iv) Service Business : Selling intangibles such as time or expertise.

Q6. What are the key areas to work a sound financial plan ? (3 marks)
Ans. Following are the key areas to work a sound financial plan :

(i) Financial Requirements.
(ii) Sources of raising funds.
(iii) Exact assessment of revenue, cost, profits, stock, etc.

Q7. Explain the formats available to design a successful business plan. (4 marks)
Ans.
(i) Elevator Pitch : It is a three minute summary of the business plan’s executive summary. This is often used at a teaser to awaken the interest of potential funds, customers or strategies partners.
(ii) A Pitch Deck with Oral Narrative : A hopeful, entertaining slide show and oral narrative that is meant to trigger discussion and interest potential investors in reading the written presentation i.e., the executive summary and a few key graphs showing financial trends and key decision making benchmark.
(iii) A Written Presentation for External Stakeholers : A detailed well written and pleasingly formatted plan targeted at external stake holders.
(iv) An Internal Operational Plan : A detailed plan describing planning details that are needed by management but may not be of interest to external stakeholders.

Q8. Briefly explain the objectives of an operation plan. (4 marks)
Ans. The objectives of an operational plan are as follows :
(i) Plan for production/operation in advance.
(ii) Establishing the exact route of each individual item, part of assembly.
(iii) Setting, starting and finishing dates for each important assignment/work.
(iv) Regulating the orderly movement of goods through the entire manufacturing cycle i.e., right from procurement of all materials to the shipping of finished goods.

Q9. Enlist the various components of a financial plan ? (4 marks)
Ans. Following are the various components of a financial plan :
(i) Proforma Investment Decision.
(ii) Proforma Financing Decision.
(iii) Proforma Income Statements.
(iv) Proforma Cash Flow.
(v) Proforma Balance Sheet.
(vi) Break Even Point.
(vii) Economic and Social Variables.

Q10. Define product mix ? Give an example of Product Mix. (4 marks)
Ans. The product mix refers to important decisions related to the product such as quality of product, design of product, packing of product, etc. Product mix includes product assortment. It refers to number of products and items, a particular producer offers to the market. For example, the Hindustan Lever is dealing in various products like soaps, detergents, tea, toothpaste, etc. Nirma made its entry with the detergent powder but later it also entered into other product lines as well such as salt, toilet soap, tooth paste, etc.

Q11. What steps should the company will take for estimating manpower requirement ? (3 marks)
Ans. For estimating the number of employees, the company will take following three steps :
(i) Work load Analysis.
(ii) Work force Analysis.
(iii) Comparing both to find out requirements.

Q12. What are the steps taken by a company in estimating the number of employees required ? (4 marks)
Ans. For estimating the number of employees required, company will take the following three steps :
(i) Work Load Analysis : This requires finding out the number and type of employees required to perform various jobs designed in organizational structure.
(ii) Workforce Analysis : It means analysing existing workforce or employees already occupying the job positions and how many of them are over burdened or under burdened.
(iii) Comparision : After doing work load analysis and work force analysis, the manager compares both work load and work force. Excess of work load over work force indicates under staffing and there is a need to appoint more people whereas excess of work force over work load indicates over staffing and there is a need to remove or transfer some employees.
As both overstaffing and understaffing are undesirable, the manager tries to find out the manpower requirement by equating work load analysis to work force analysis.

Q13. Write a short note on business plan. (4 marks)
Ans. Business plan is a blue print of an organization describing its objectives, areas of operation, strategies of operations, etc. A business plan must convince the venture capitalist that the company and the management team have the ability to achieve the goals of the company within the time specified. A business plan should explain the nature of company’s business, what it wants to achieve and how it is going to do it. The business plan must be created by using simple English Language, techenical words must be avoided and the length of business plan should not be more than 25-30 pages.