Arts (English Medium) Class 12 - CBSE Important Questions for Entrepreneurship

What is a Business Plan?

Describe the different elements of an operational plan. 

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.

1. It will help the company to understand the total amount of funds required.
2. It will also help the company to assess the situation as to whether they have excess or inadequate funds.
3. It helps the company to understand the various sources of funds.
4. It helps the company to reflect the position of the business at the end of every year.

Assertion (A): For a trading organization, the operating cycle will be shorter.

Reasoning (R): There is no manufacturing in a trading organization.

State any two characteristics of partnership form of business organization. 

Why is a private company more desirable than a public company? Give any two reasons.

What does the manpower plan help to assess?

Explain the first three steps involved in preparing the marketing plan.

The entrepreneur should develop a sound financial plan as timely availability of funds in the right volume is key to entrepreneurial success. In light of the given statement, examine the relevance of a financial plan for an entrepreneur.

What is the need for a business plan?

Elaborate on various formats in presenting a business plan to prospective investors.

Aarushi finished her Bachelors degree in Management and decided to join Paras Pharmaceuticals. She was placed under the department which oversaw the exact route of each individual item. Her supervisor Kumar explained that their department plays a very important function of looking into the movement of material, performance of machines and operations of labour. She was surprised and asked Kumar the reason and he further explained that the department makes a plan for every item which will ensure the orderly flow of materials from the raw material stage to the finished product stage and this will enable continuous production always.

He further elaborated on various systems used for quality control. Kumar showed her an existing plan and asked Aarushi to devise a plan incorporating all that he had explained.

Explain the first five elements involved in this plan.

Identify the various factors which will help the entrepreneur as well as the potential investor from the organisational plan.

1. Long-term effectiveness of the enterprise
2. Profitability
3. Specifying the types of skills needed and the roles that must be filled by the members
4. The attitudes, behaviours, dress, communication styles etc., thus chalking out informal organisation

What are the three most likely situations which arise before any firm while preparing the production plan?

Enlist any three points of importance in framing the business plan.

The production plan aims at "plan your work", whereas operations plan ensures "work your plan". In the light of the given statement, examine the relevance of a operational plan for an entrepreneur.

Explain any five components of this plan.

‘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 -

1. adding a certain percentage of profit to the cost of production
2. 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

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.

The entrepreneurs have an option to brand their product alpha-numerically, as it signifies ______.