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

“Successful launch of a product depends upon various factors. Entrepreneurs have to keep in mind the various ways of reaching the customers and persuade them to buy their products.”

Comment on any two such methods used by an entrepreneur in attracting the customer to buy their product.

Arpit, an entrepreneur, was short of capital. He was worried about the fact as to how he will reach out to his customers. He met his friend who is at present working in a start-up firm. He explained to Arpit a way to reach customers without any middlemen which will help him overcome the shortage of cash. So, Arpit decided to keep his channel of distribution simple as advised by his friend.

1. Identify the channel of distribution adopted by Arpit.
2. Explain the channel of distribution mentioned above.
3. Give any two of advantages of this type of channel.

The level of sales to the level of revenue generated is a useful parameter for mapping an organization's present and future course of action. Justify.

Explain five common types of Intellectual Property Rights.

1. Above the line
2. Below the line
3. Through the line

Aarna industries started manufacturing ice-creams under the brand name 'Tasty'. The company decided to use 3D animation techniques which will be projected on buildings. They chose several high raise buildings all over major metropolitan cities and started their advertising campaign.

What form of media is the company using?

This promotional technique is deliberately planned and sustained effort to establish and maintain mutual understanding between an organisation and public. This industry grew 12% to touch 1600 crore in FY19, according to the fourth ‘State of the Industry Survey 2019’ report by the Public Relations Consultants Association of India (PRCAI). While media relations continue to be the largest service, non-media relations services now contribute 53 per cent of the industry’s revenue. Identify the technique

Ratnanjali Ayurveda introduced a new range of products on the basis of the tri doshas. The marketing department is brainstorming on the branding of the new range where the customers can identify the new range easily and at the same time it creates awareness about the type of products this range has. The name ‘AyurPrakriti’, was adopted by the company and it would be used for all the products under this range. Which type of branding is adopted by Ratnanjali Ayurveda?

Assertion (A): Advertising is a paid form of communication.

Reason (R): Successful advertising makes the products or services positively known by that section of the public most likely to purchase them.

Jai Prakash Ltd., was running into losses for the past few years. The company appointed a consultant to look into the reasons for the loss. The consultant after analysing everything framed a sales strategy which helped the sales force spend time targeting the correct customer at the right time. This helped the company to revive their profits within a few months. Explain the types involved in this strategy.

How is the channel of distribution influenced by the type of buyer?

This concept is an identifying symbol for any product or business. It can be any distinctive design, mark, sign which stands associated with the enterprise. Enlist any three purpose of this concept.

Enlist the advantages of fixing price in this manner.

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 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:

Assertion (A): In franchising there is usually a much higher likelihood of 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.

The merger of Techno Fit and Let’s Konnect was due to the rising competition with Arihant Tech. The market was slowly captured by Arihant Tech, due to its policy of providing free service in the first 6 months. Both Techno Fit and Let’s Konnect couldn't stand the price war between the companies in the telecom sector and decided to come together so as to increase their market share. This strategy helped them in cost saving through economies of scale as they could cover more areas now. It led to the overall growth of both companies.

Identify and explain the growth strategy adopted above by the telecom operators, Techno Fit and Let’s Konnect.

Varied reasons are cited by firms for joining hands with another company to enhance their growth. Analyse any two reasons for the same.

Kavita started a boutique named ‘Stylo queens’. She replaced old sewing machines with new one’s during the pandemic to manufacture masks and PPE kits. Gradually her boutique became popular and seeing the swelled up demand for her products she further installed extra machines to cater to the growing demand of the increasing customers. From the profits earned, she decided to further expand the business by starting a new business of cushion covers and bed sheets.

1. Identify the type of expansion mentioned above.
2. What is the net result of such an expansion?
3. Explain the expansion discussed above.

Franchising is advantageous for both franchisor and franchisee. Explain five advantages of franchising for the franchisee.

How is franchising a better option for external expansion in case of start-ups?