Professional Documents
Culture Documents
ENTREPRENEURSHP DEVELOPMENT
PART - A
UNIT-I
1. Define entrepreneurship ?
The capacity and willingness to develop, organize and manage a business venture along
with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the
starting of new businesses.
2.Who is an entrepreneur?
A person who organizes and manages any enterprise, especially a business, usually withc
onsiderable initiative and risk.
3. Write short notes on project plan?
A project plan, according to the Project Management Body of Knowledge, is: "...a
formal, approved document used to guide both project execution and project control. The primary uses
of the project plan are to document planning assumptions and decisions, facilitate communication
among stakeholders, and document approved scope, cost, and schedule baselines. A project plan may
be summarized or detailed."
IT is a statement of how and when a project's objectives are to be achieved, by showing the major
products, milestones, activities and resources required on the project.
4. What is product launching?
Product launch means introducing a new product into the
market. In other words it is adding a new product in the existing product line of
the company
5. What is channel selection for a small business ?
Small businesses need to find a way to serve their customers, wherever they are located.
That's why selecting a distribution channel is an important aspect of building a competitive advantage
for businesses of every size. Distribution channels include your own direct sales force, retailers,
distributors and the Internet. The right distribution channel ensures that customers in different
locations around the country, or around the world, can buy your products and get the right level of
service from your company. To select the right distribution channel for your business, you need to
consider what a channel can offer, including location and reach, skills and resources, management
costs and degree of control.
6. How to prevent sickness in business?
a) Enforce financial discipline
b) Monitor changes in market share and maintain it
c) Discontinue unprofitable product line
d) Identify areas of inefficiency and improve it
7. What are the characteristics of small business?
a) Entrepreneurial spirit
b) Limited management skills
c) Have limited funding
d) Trade within competitive markets
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
UNIT-II
21. An entrepreneur decides to sell his woollen garments in the month of February on discount.Name
and explain the environmental factor which prompted him to take this decision.
Economic Factor:
Economic factor consists of variables like supply and demand for the product. Details of consumer
trends, economic preferences, costing, discounting etc are all economic decisions.
22. Explain any three sources from which basic ideas emerge. (a) Problems
(b) Change
(c) Inventions
(d) Competition
23. Explain the first three steps involved in the process of investigation of a feasible product.
First three Steps:
(a) Product or service identification
(b) Application and use
(c) Level of operation.
24. State any three objectives of preparing a Project Report. To identify the requirement of the
resources
(b) To assess the scope and range of the success of the enterprise. (c) To obtain opinion of experts
from various fields
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
UNIT-III
41. Explain any four decisions which have to be taken into considerations under the head‟Material
Resources‟. Four Decisions are: (a) Size and location
(b) Manufacturing process
(c) Identifying and purchasing machinery
(d) Obtaining electricity power
42. Name and explain the concept which states that a particular volume of production of a firm neither
makes a profit nor a loss.
BEP is the volume of production at which a firm neither makes a profit nor a loss. At the BEP revenue
equals the total costs
43. State any four advantages of‟Inventory Control‟. Four Advantages of inventory control are:
(a) To know whether materials are readily available for production/use. (b) To examine quantity
discounts for large orders.
(c) To ensure prompt delivery of materials to customers. (d) To stabilize the fluctuation of demands.
44. Differentiate between „Preference Shares‟ and „Equity Shares‟ on the basis of: 4 (a) Voting Right
(b) Payment of Dividend
(c) Repayment of Capital
(d) Rate of Dividend
asis eference Shares uity Shares
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
(a) Transportation
(b) Storage
(c) Warehousing
48. Name the products which are sold to other firms for their production purposes. Industrial products
Example- (Any one): Machines, equipments, raw materials, packaging and labeling products etc.
49. For which type of products can the manufacturer initially fix a very high price?
When the product is an innovative one and is received by the market well. Pricing method which is
used for these types of products is – skimming price method.
50. What do you mean by idea generation?
Generating new ideas can b a very burdensome task. Putting them into practice can be much harder.
Business ideas come from a careful analysis of market trends and consumer needs.
For selecting a good business idea an entrepreneur first generate the idea ,screen it and choose the best
idea which may be converted into business opportunities.
51. What are the ancillary industrial undertakings?
An ancillary industrial undertaking is one that produces parts ,components, sub-assemblies and tooling
for supply against known or anticipated demands of one or more large units manufacturing assembly
complete products.
52. What are the common errors in a project report?
1) Product selection
2)Market study
3)Technology selection
4)Selection of ownership form
5)Capacity utilisation estimates
53.How entrepreneurs prevent sickness?
1) Macro economic policy changes
2)Sub sector wise long term policy
3)Improvement of infrastructural facilities
54. How entrepreneurs select the market channels?
This process involves specifying the type, location, density ,and functions of intermediaries ,if any, in
a marketing channel. However, before addressing these decisions, the manager must conduct a market
analysis in order to identify the target markets that will be served by a prospective marketing channel.
55.Explain PERT.
The program evaluation and review technique , commonly abbreviated PERT, is a statistical tool ,
used in project management , that is designed to analyze and represent the tasks involved in
completing a given project.
56. Explain CPM.
The critical path method is an algorithm for scheduling a set of project activities. It is an important tool
for effective project management. CPM is the method project planning consisting of a number of well
defined and clearly recognizable activities.
57.Describe project evaluation.
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
Evaluation is the periodic assessment of a projects‟ relevance, performance ,efficiency, and impact in
relation to stated objectives: Project managers undertake interim evaluations during implementation as
a first review of progress , a prognosis of a projects‟ likely effects, and as a way
to identify necessary adjustments in project design.
58. List the “Nature of project”.
1) Tangible product
2)Intangible product
3)Craft work
4) Intellect work
59. What are the traits of entrepreneur?
1)Explorer
2) Coordinator
3) Driver
4) Administrator
60. What are the contents of Project feasibility report?
1) Objective and scope of the report.
2) Product characteristics, i.e, the specifications , uses and applications , standards , quality , etc.
3) Raw materials requirement , prices , sources and properties of raw materials.
4) Manufacturing process, selection of process , production schedule and techniques.
5) Requirement of land area , building , construction schedule.
UNIT-IV
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
The term venture capital comprises of two word, ,namely, „venture‟ and „capital‟. The term venture
literally means a course or proceeding, the outcome of which is uncertain but which is attended by the
risk of danger of „loss‟. On the other hand, the term capital refers to the resources to start the
enterprise.
According to 1995 finance bill, “ Venture capital is defined as long-term equity investment in novel
technology based projects with display potential for significant growth and financial return”.
In simple terms, it refers to the involvement of applying plans, controlling the operations of new
venture through a defined direction and with the help of certain organisation for a production function
to occurs successfully. It is essential to all the department production, design, finance, human resource,
logistic, marketing etc.,
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
1. Organisation
2. Consumer
3. Investors
4. Employee
5. Suppliers
6. Community
7. Nation.
73. What is Market selection?
A firm target market is a limited group of individuals or business that it goes after or tries to appeal
to. It is important that a firm first choose its target market and position itself within its target market
because virtually all its marketing decision hinge on this critical initial choices.
1. Government sponsored
2. Non profit sponsored
3. University or academic institutions
4. privately sponsored
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
The growth strategy is one of the grand strategy of the business. It is used by the business to
achieve the growth objectives. In simple terms, strategy is the well planned course of actions
devised to achieve an objective. Accordingly growth strategy meant to expand business
operations.
This strategy necessitates developing new products to be sold in existing markets. This can be
seen as a quite common process because for a company to sustain its presence and growth it can
not be real rely on a single product range.
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
UNIT-V
81. Explain with the help of an example, how does an entrepreneur assess the requirements of working
capital.
Working capital is the capital required by business to carry out day to day activities. It is generally
calculated for full operating cycle.
82. List any six factors that should be kept in mind by an entrepreneur as a part of production plan.
Six factors that should be kept in mind by an entrepreneur as a part of production plan are :
(a) Machines, tools and equipments required. (b) Cost, type and supply of raw materials
(c) Work schedules.
(d) Quality control / assurance
(e) Maintenance
(f) Capacity utilization
(g) Skilled and unskilled labour requirements
84. Explain the role of „financial planning” in „financial management‟. It matches the needs of the
enterprise for short term as well as long term purposes.
(b) It helps in estimating the amount of capital to be raised so that an enterprise may be protected from
the adverse consequences of over capitalization and under capitalization
85. Explain „Demand Driven Ideas‟ and „Trading Related Ideas‟ as idea fields.
86. Name and explain the concept which states that at a particular volume of production a firm neither
makes a profit nor a loss.
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
BEP is the volume of production at which a firm neither makes a profit nor a loss. At the BEP revenue
equals that total costs.
87. State any four disadvantages of issuing equity shares. Limitations of issuing equity shares:
(a) Floatation cost is higher than other sources finance
(b) Company can not take advantages of trading on equity, if it is depending exclusively on equity
shares. (c) Danger of over capitalization.
88. Explain any two growth sustaining activities of an enterprise. Growth sustaining activities of an
enterprises (any two)
(a) Modernization
(b) Expansion
(c) Diversification
(d) Substitution
(e) Franchising
89. Explain any six steps which help in identifying a feasible product or process. Steps which help in
identifying a feasible product on process :
(a) Product or service identification
(b) Application and use (c) Level of operation (d) Cost
(e) Competition
(f) Technical complexity
(g) Annual turnover on profit margin
90. What is a „Project Report‟ ? State any four elements of a Project Report.
The project report is basically a business plan. It describes all necessary inputs to the enterprise. It
explains the mode of utilization of resources and also details the strategies for the execution of the
project. It outlines the desired goals.
(a) Description of the promoters
(b) Description of the enterprise
(c) Economic viability and marketability
(d) Technical feasibility
The many yardsticks used to distinguish small from large business include number of employees,
level of annual sale, amount of owner‟s equity and total asset. A small business is defined as an
independently owned and managed profit seeking enterprises employing fewer than hundred people.
N.NITHYA AP/MBA
III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
1. Manufacturing industries
2. Ancillary industries
3. Cottage industries
4. Small scale services
5. Feeder industries
“ A sick unit is unit which fails to generate an internal surplus on a continuous basis and depends
for its survival upon frequent infusion of external funds”
1. Continuous decline in gross output compare to the previous two financial years
2. Delay by more than 12 months in repayment of loan taken from institutional source
3. Erosion in the net worth to the extent of 50% of the net worth during the previous accounting
year
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III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
(ii) Study the production capacity of different production sections and check-up if the
capacity of different sections is perfectly balanced.
(iii) Explore the possibility of adding additional/special features to the products that will
add competitive edge to the product.
(i) Commercial failure of a project will be mainly due to problems relating to the product itself
viz., defects/imperfections in product design which may lead to consumer resistance.
(ii) In spite of consumer acceptance of the product, if the project has gone sick, it is likely that the
profit margins might be low. Minor modifications in designing and packing of the product
with upward revision in price may be accepted by the market which may bring better returns
to the company.
99. What are the new guidelines for rehabilitation of sick SSI units.
(i) If any of borrowed accounts of the unit remains sub-standard for more than six
months., i.e., principal or interest in respect of any of its borrowal accounts has
remained overdue for a period exceeding one year.
(ii) There is erosion in the net-worth due to accumulated cash losses to the extent of 50
percent of its net-worth during the previous accounting year.
(iii) The unit has been in commercial production for at least two years.
As per the extent of RBI guidelines, promoter‟s contribution towards the rehabilitation package
is fixed at minimum of 10 per cent of the additional long-term requirements under the
rehabilitation package in the case of tiny Sector units and 20% for the other units. In the case of
units in the decentralised sector, promoter‟s contribution may not be insisted upon. A need is felt
for increasing the promoters‟ contribution towards rehabilitation from the present limits. At
least 50% of the above promoter‟s contribution should be brought in immediately and the
balance within six months.
SECTION B & C
UNIT – I
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III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
UNIT – IV
31.Explain the various sources of capital available for an entrepreneur.
32.Describe the growth strategies for small business emphasizing the merit and demerit of each.
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III SEMESTER/II YEAR BA5014 ENTREPRENEURSHIP DEVELOPMENT
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