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Entrepreneurship Board Sample Paper 2024-2025 Commerce (English Medium) Class 12 Question Paper Solution

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Entrepreneurship [Board Sample Paper]
Marks: 70 CBSE
Commerce (English Medium)
Science (English Medium)
Arts (English Medium)

Academic Year: 2024-2025
Date: मार्च 2025
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GENERAL INSTRUCTIONS:

  1. This question paper contains 34 questions. All questions are compulsory.
  2. The question paper is divided into four sections - Section A, B, C and D.
  3. In Section A : Questions number 1 to 18 are Multiple Choice Questions carrying 1 mark each.
  4. In Section B : Questions number 19 to 24 are Short Answer type-I questions carrying 2 marks each.
  5. In Section C : Questions number 25 to 29 are Short Answer type-II questions carrying 3 marks each.
  6. In Section D : Questions number 30 to 34 are Long Answer type questions carrying 5 marks each.
  7. There is no overall choice. However, an internal choice has been provided in Section B, C and D of question paper. 

SECTION - A
[1]1

In the light of the given statement, identify the essential feature of partnership form of business organisation referred to and choose the correct option:

“In a partnership form of business, each partner can bind the firm and other partners by his/her acts.”

implied authority

utmost good faith

mutual agency

separate legal entity

Concept: undefined - undefined
Chapter:
[1]2
Fraggy is a restaurant aggregator and food delivery company. The customers can order food from listed food joints through the ‘Fraggy App’. It started when the founders noticed that people were unaware of the functional restaurants in their neighborhood and were searching for a variety of food options. The founders thought that it would be a great idea to list all the competing restaurants on the ‘Fraggy App’ and provide their menus as well.

______ is the source that led to the emergence of the business idea.

Competition

Change

Problem

Innovation

Concept: undefined - undefined
Chapter:
[1]3

______ is a sophisticated positive sales approach where the salespersons compare the features of their product without mentioning the competition.

Direct sales strategy

Indirect sales strategy

Comparative sales approach

Customer testimonials

Concept: undefined - undefined
Chapter:
[1]4

Refer to the logo of the coffee brand Del Coffee carefully:

in the given image represents:

Brand Mark

Brand Name

Trade Mark

Tagline

Concept: undefined - undefined
Chapter:
[1]5
Anita, a tech entrepreneur, wants to start her automation consultancy business that will develop AI-based customized solutions for different service providers. She cannot do it all by herself so she has approached her friend Supriya, who is an IIT graduate. Together they plan to commence the business in a form where their liability is limited and the business is regulated by law.

______ form of business organisation meets the requirements of Anita and Supriya.

Sole proprietor

Partnership

Private limited company

Public limited company

Concept: undefined - undefined
Chapter:
[1]6

Innovation involves translation of a useful idea into an application which has ______.

utility

commercial value

creative solution

better performance

Concept: undefined - undefined
Chapter:
[1]7

From the given elements of operational plan in Column-I and the objectives given in Column-II, choose the correct pair:

Column I Column II
(a) Routing i) comparing materials, product or performance with established standards.
(b) Dispatching ii) determining the exact path a product/service has to follow, right from raw material to finished good.
(c) Inspection iii) initiating production as per the pre-conceived production plan.
(d) Follow-up iv) expediting function that relates to evaluation and appraisal of work performed.

(a) – (i)

(b) – (ii)

(c) – (iii)

(d) – (iv)

Concept: undefined - undefined
Chapter:
[1]8

Nirmala dairy farms have been in the business of processing pure ghee using the ‘Bilona technique’. The cost per kilo of ghee comes out to be ₹ 2000. The owners have estimated that a reasonable profit margin will be 25%. So they have decided to sell the product at ₹ 2500 per kilo.

On the basis of the given text, identify which of the following is the drawback of the indicated pricing strategy and choose the correct option:

It attracts only the bargain hunters who switch to other brands if the price rises.

Is not a viable option if there are strict legal and government regulations.

It does not take into account the competitor's pricing and actions.

It leads to a series of counteroffers that sometimes result in no sale.

Concept: undefined - undefined
Chapter:
[1]9

Logo of a company:

  1. is the key visual component of an enterprise's overall brand identity.
  2. provides essential information about the company through a set color combination, fonts, images, and impressions.
  3. is a memorable dramatic phrase that will sum up the product.
  4. can be a graphic mark or emblem used to promote instant public recognition.

ii and iii

i and v

iii, iv and v

i, ii and iv

Concept: undefined - undefined
Chapter:
[1]10

Identify which of the following intellectual property is not patentable?

process of manufacturing

machine used for manufacturing

designs or patterns used for manufacturing

substances used for manufacturing

Concept: undefined - undefined
Chapter:
[1]11

______ is the ingredient of a franchise agreement which outlines the marketing and advertising procedures to be used by franchisee.

Contract explanation

Operations manual

Ongoing site maintenance

Proprietary statements

Concept: undefined - undefined
Chapter:
[1]12

______ element of the financial plan describes how the enterprise funds will be dedicated to different assets so that the enterprise can earn the highest possible return.

Investment decision

Financing decision

Income statements

Cash flow statement

Concept: undefined - undefined
Chapter:
[1]13 | Read the following statements: Assertion (A) and Reason (R). Choose the correct option from those given below:

Assertion (A): New companies (start-ups) find it difficult to go public.

Reason (R): A new company needs to maintain dividend and profit growth trends.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true, but Reason (R) is false.

Assertion (A) is false, but Reason (R) is true.

Concept: undefined - undefined
Chapter:
[1]14

Given below are assumptions that are made by an entrepreneur in the breakeven-point analysis for a multi-product business.

  1. The proportion of the sales mix must be predetermined.
  2. The sales mix must change within the relevant period.
  3. All costs can be categorized as variable or fixed.
  4. Sales price per unit, variable cost per unit, and total fixed cost are calculated as per the forces of demand and supply.
  5. All units produced are not sold.

Choose the option that depicts the correct pair of assumptions:

i and iii

ii and iii

iv and v

i and iv

Concept: undefined - undefined
Chapter:
[1]15

Identify which of the following is not a current asset for a furniture manufacturing unit?

debtors

outstanding expenses

stock of table and chairs

short-term investment

Concept: undefined - undefined
Chapter:
[1]16

Identify which of the following is an advantage of issuing shares through ‘Rights issue.’

It is an inexpensive method of issuing shares.

It leads to higher employee motivation and lower labor turnover.

It results in higher valuations of companies and better prestige.

This method helps in maintaining confidentiality.

Concept: undefined - undefined
Chapter:
[1]17

In ______ acquisition, the purchasing company becomes a subsidiary of the purchased company.

friendly

reverse

backflip

hostile

Concept: undefined - undefined
Chapter:
[1]18
Suvidha Store is a grocery store that retails fast-moving consumer goods. The store buys its supplies on credit and sells them on cash basis. With growing competition, it has also started selling goods on credit.

The above step taken by Suvidha store may lead to ______ in its working capital requirement and its cash conversion cycle will be ______.

increase, longer

decrease, longer

no change, longer

increase, shorter

Concept: undefined - undefined
Chapter:
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SECTION - B
[2]19
[2]19.A

Explain ‘product identification’ as the first step in idea and opportunity assessment.

Concept: undefined - undefined
Chapter:
OR
[2]19.B

Differentiate between a basic idea and post scanning idea.

Concept: undefined - undefined
Chapter:
[2]20

Read the following text carefully:

Rohit is a trained plumber and has worked for a hardware shop for more than 3 years. He is very popular in the area and people generally request his employer to send Rohit for their repair and maintenance tasks.

Rohit is planning to start a business of his own where he will directly reach his clients upon a phone call. He will provide services instantaneously within 15 minutes of the request received. His present clients may put in a positive word for him among their friends and neighbors, which can help his business grow.

On the basis of the given text, identify, giving reasons, any two elements of business opportunity.

Concept: undefined - undefined
Chapter:
[2]21
[2]21.A

Refer to the images given below: 

(i) (ii)
  1. Identify the type of enterprise growth strategy adopted in the two scenarios indicated in the aforesaid image.
  2. List the two forms of the growth strategy indicated.
Concept: undefined - undefined
Chapter:
OR
[2]21.B

Discuss briefly the two forms of ‘synergy’ that accrue to the merging firms.

Concept: undefined - undefined
Chapter:
[2]22

Zakir is keen on giving up his job and starting a new fitness industry business. He has to choose among fitness drinks, gym equipment & fitness gear.

Zakir decided to spend more time in the gym inside his apartment complex and in nearby localities, especially on weekends and late evenings, to observe the people and understand their requirements.

He took the membership of the Gym Community Trade Association, through which he got the advantage of their social networking tools like Instagram page, gym websites and community Whatsapp groups. He conducted an online survey to ascertain the viable product for his business idea. The response so collected gave him the clarity that he should go with fitness gear.

By quoting lines from the above passage, identify the ways of trend spotting used by Zakir.

Concept: undefined - undefined
Chapter:
[2]23
[1]23.A

Describe the ‘elevator pitch’ format of business plan used by entrepreneurs.

Concept: undefined - undefined
Chapter:
[1]23.B

How is ‘elevator pitch’ different from an ‘internal operational’ plan?

Concept: undefined - undefined
Chapter:
[2]24
[2]24.A

Tic Tac Electricals Ltd. manufactures switches and plugs in an industrial area in the state of Haryana. On average, they manufacture 2500 switches per day. Their raw material supplier is based in Punjab and takes 5 days to deliver the requirement once the order is received. Estimate the reorder level for Tic Tac Electricals Ltd.

Concept: undefined - undefined
Chapter:
OR
[2]24.B

The following information relates to the newly established Boutique – ‘The Pearl’:

  • Total capital invested - ₹ 40,00,000 out of which ₹ 20,00,000 is a bank loan at 15% per annum.
  • Net Profit after Tax is ₹ 6,00,000.

Calculate Return on Equity for The Pearl Boutique.

Concept: undefined - undefined
Chapter:
SECTION - C
[3]25

Prudent Pharma has been a well-established manufacturer of curative medicines in India for the past 15 years. The company is planning to enter a new line of products known as ‘nutraceuticals’ which has both nutritional and medicinal benefits. With rising awareness levels and easy access to information, people are keen to try nutraceuticals, as these health supplements claim to delay or reduce the impact of chronic diseases.

As income levels of the population have improved, nutraceuticals promise to emerge as a growing niche market in the country. It is governed by health and safety regulations and the company needs to acquire the required licenses to venture into this field. Though the concept is new to India, internationally it is already a growing market with multiple international brands. Prudent Pharma is in talks for a potential international tie-up for research and development.

On the basis of the given text, identify, by quoting lines, any three macro-environment factors that may affect the future of Prudent Pharma.

Concept: undefined - undefined
Chapter:
[3]26
[3]26.A

“An entrepreneur must pay attention to the quantity and quality of the manpower for his business, as it directly impacts the performance and resulting productivity of the organization.”

  1. In the light of the aforesaid statement, identify the component of a business plan that helps an entrepreneur fulfill the stated purpose.
  2. State the objective and importance of the identified component.
Concept: undefined - undefined
Chapter:
OR
[3]26.B

“One of the components of a business plan effectively establishes how the entrepreneur will compete and operate in the marketplace. It acts as a guideline regarding the marketing objectives, strategies, and activities to be followed by any new enterprise.”

  1. Identify the component of the business plan discussed above.
  2. Explain the steps described in the plan that help an entrepreneur find the group of customers whose needs the enterprise aims to fulfil.
Concept: undefined - undefined
Chapter:
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[3]27

In 2022, a popular snacking brand ‘Pom-Pom’ completed 25 years in India. They were one of the first such brands in the country and wanted to start a campaign that allowed the brand to connect with the consumers directly. The marketing team created the idea of ‘Me and Mera Pom-Pom’ where people were encouraged to share their stories woven around their experiences with the product. Such a campaign enabled the consumers to send their message to the company rather than receiving it from them. People shared some of the most poignant and private moments of their lives. Some uploaded their viral films too.

  1. Identify the promotional approach used by ‘Pom-Pom’ to reach its customers.
  2. Explain any two important features of this approach.
Concept: undefined - undefined
Chapter:
[3]28
[3]28.A

Explain any three market-related considerations to be used by an entrepreneur while selecting the channel for distribution.

Concept: undefined - undefined
Chapter:
OR
[3]28.B

‘A channel of distribution consists of three types of flows.’ Explain the three flows.

Concept: undefined - undefined
Chapter:
[3]29

Tutu Pump Co. uses about 7500 valves per year, which is constant throughout the year. The valve costs ₹ 15 per unit and the carrying cost is estimated to be ₹ 3 per unit. The cost of placing an order and its processing is ₹ 18. Calculate the Economic Order quantity (EOQ). Give any one benefit that Tutu Pump Co. derives after calculating the EOQ.

Concept: undefined - undefined
Chapter:
SECTION D
[5]30

Read the extract below:

As the world is drowned in the rubble of plastic it has become a now or never situation to protect the world. Indian entrepreneurs, Mrs. and Mr. Smith launched ‘Green India’ in 2021 with the aim to provide a simple replacement for harmful plastic with bamboo-based products.

Using technology for processing of the bamboo plant, the brand has developed around 22 products, with manufacturing around 30 lakh Bamboo toothbrushes which have been delivered across India and 18 countries in the world. “India is the second-largest bamboo grower in the world and also one of the biggest bamboo importers. It made me think about how we are underutilising our bamboo resources,” comments Mr. Smith. This agripreneur has since engaged 4,000 farmers from villages of Nanded in Maharashtra to manufacture products.

After completing his masters degree from the University of Maharashtra, he joined the IT industry in France. It was there that the idea of starting a sustainable business struck him. He was supported by his wife who helps with human resources and accounts. He gives credit to social media platforms for the boost to sales and growing popularity of eco-friendly products.

Green India is now looking to add another 1,000 families to completely depend on their products. Their major aim is to reduce 1 million kilogram of plastic waste every year from next year onwards.

On the basis of the given text and common understanding, answer the following questions:

  1. Identify the idea field used by Mr. Smith to launch the business.
  2. Explain any two more idea fields other than the one identified above.
  3. Giving reasons, mention any two socio-economic benefits that the above business has.
Concept: undefined - undefined
Chapter:
[5]31
[5]31.A

Elaborate the advantages of a franchise form of business to a franchisee.

Concept: undefined - undefined
Chapter:
OR
[5]31.B

‘Pricing can also be used as a demarcation to differentiate and enhance the image of a product’.

  1. In the light of the above statement, explain Penetration and Skimming as two important pricing strategies that can be used by an entrepreneur.
  2. Give any two advantages of both Penetration and Skimming strategies.
Concept: undefined - undefined
Chapter:
[5]32

Read the following text carefully:

Mr. Prasad started a cakes and confectionery business in 2010 by the name of ‘Happiness to Order’. In no time his bakery became the talk of the town for customized cakes as per the occasion. He used high-quality liquid glucose and icing sugar to make the fondants for his cakes. Seeing the popularity, he opened 4 more outlets in different localities.
Over the years people have become cautious of what they eat and are cutting down on sugar. The fondants that were once the USP of his bakery were now losing market to the competitors as they introduced a healthier version of bakery products, especially cakes without gluten or sugar but almond flour, oats flour, etc.
His cooks advised him to experiment with healthier options which Mr. Prasad was reluctant to try. He could not adapt to the changing environment and all 5 outlets started running into loss. Eventually, he decided to close the business. He owes ₹ 15,00,000 to his supplier firm whom he had taken goods on credit in the past year.

On the basis of the given text and common understanding, answer the following questions:

  1. Mr. Prasad’s business funds are insufficient to repay the debts, can the supplier claim Mr. Prasad’s assets? Give valid reasons in support of your answer.
  2. “Environment scanning is important for an entrepreneur.” Justify the statement, giving valid reasons in support of your answer.
Concept: undefined - undefined
Chapter:
[5]33

Zoke Ltd. manufactures eco-friendly furnishing and upholstery products. The fixed cost for the production process is ₹ 22,56,000. The following information is available about its range of products:

The following information is available about its range of products:

Variety Cushion covers (per pair) Curtains (set of two pairs) Bed covers (Standard King size)
Selling Price (in ₹) 555 1150 1550
Variable Cost (in ₹) 275 550 750
Sales Mix 30% 40% 30%

From the given data, calculate the following:

  1. Total weighted average contribution margin.
  2. Breakeven Quantity for each product.
  3. Break-even point (in ₹) for a pair of cushion covers.
Concept: undefined - undefined
Chapter:
[5]34
[5]34.A
[1]34.A.I

‘The highly anticipated Initial Public Offer (IPO) of Life Insurance Corporation of India (LIC), emerged as the largest turnout in terms of public participation in the nation's history.’
Identify the type of capital market LIC of India has approached.

Concept: undefined - undefined
Chapter:
[2]34.A.II

Distinguish between the two types of capital markets.

Concept: undefined - undefined
Chapter:
[2]34.A.III

‘Capital markets are an important source of raising finance for entrepreneurs.’
Justify the statement, giving valid reasons in support of your answer.

Concept: undefined - undefined
Chapter:
OR
[5]34.B
[2]34.B.I

Distinguish between angel investors and venture capitalists.

Concept: undefined - undefined
Chapter:
[3]34.B.II

Describe the role of an angel investor in an entrepreneurial venture.

Concept: undefined - undefined
Chapter:

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