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ENTREPRENUERIAL MANAGEMENT
V SEMESTER BBA
Question Bank previous year papers solved

2019,2018,2017,2016
Prepared by
Prof TAMIL SELVAN .V
ASST PROFESSOR
SMT NALINI RAGHUNATHA RAO DEGREE COLLEGE,JIGANI
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V SEMESTER BBA EXAMINATION NOV/DEC2019

I. SECTION A Answer any five 5X2=10

a .Mention any four types of entrepreneurs?
1. Innovative Entrepreneur 2. Fabian Entrepreneur 3.Technocrat entrepreneur 4.Agriculture Entrepreneur
b. Mention any two characteristics of a Small scale Industry?

1.Employment opportunities 2. Labour intensive
c. Mention any four limitations of a sole trading concern?

1.Liability 2.Lack of continuity 3.Difficulty in rising capital 4.Risky 5.Heavy burden.
d. What is meant by feasibility Report?

A feasibility report is a project report of a new enterprise or of an expansion which provides in general
primary economic, information, financial data and technical details.
e.Expand : SIS, SIDBI

SIDBI : Small scale Industries Development Board of India
f.Mention any two essential quality of an entrepreuner

1. Calculated Risk taker: 2.Innovator: 3.Organizer: 4.Creative:
g.Mention any two factors influencing entrepreneuership?

I. Psychological Factors:
a) Need for achievement b) Personal Motives c )Recognition d) Need of Authority
II. Section B . Answer any three questions 3X6=18

2.Explain any six functions of an Entrepreneuer?
FUNCTIONS OF ENTREPREUNERS
1. INNOVATION:-
The entrepreneur basically an innovator who introduces new combinations of production that is innovation.
Entrepreneurship is a creative activity and the entrepreneur introduces something new in any branch of
economic activity.
Introduction of new product, new technology ,new market for product, discovery of new sources of supply.
RISK BEARING:-
Risk taking is an uncertainty bearing implies assuming the responsibility for loss that may occur in the
unforeseen contingencies of the future. Business is a game of skill where risk and rewards both are great.

Ability of highest order is required for success in entrepreneurship. An entrepreneur is an especially

talented and motivated person who under takes the risk of Business.
2. Organizations and Management:
Recognize organization and management of the enterprise is the main function of the entrepreneur. Planning
of an enterprise, co-ordination , administration and control of employees routine type of supervision of
employees.
3. Other functions:
a. Understanding one’s own capacity
Examine dominant aspects of the business, Identify and compare own personal qualities and skills. Know one
‘s Strength, Weakness and the overall capability.
b. Identifying new venture opportunity:
Study market needs and wants, Recognition innovation possibilities. Think about a new idea, process, device
product or services .Carrying out Market research, Be well aware of competitions
c. Planning new venture:
Planning the Human resource requirement . Planning the financial requirement, assts requirement,
Shareholders fund, investment and capital requirement.
d. Organizing new venture:
Choose the form of ownership, determine organizational structure Ensure fearless from different authorities,
obtain certificate of registration etc.
e)Managing Finance:
Arrange own and borrowed capital, prepare and review from time to time sectional and master budget with
fund flow estimate. Analyze financial requirement and statements. Maintain proper books of accounts.
f.Managing Production operation:
Acquiring detail of basic technical knowledge and production operation .Formulating purchasing policy and
inventory control system. Formulate frame work for total quality control
g. Managing Work Force:
Arrange systematic manpower planning , prepare job descriptions for all positions at all level. Recruit the right
person for the right job, Evaluate each employees performance periodically.
h. Managing Market:
Collect and analyze regularly data on customer desires with special reference to product quality, price and
service sales after service. Select and review marketing channel and ensure smooth flow of goods to market
place. Motivate sales and servicing personnel.

3.Explain any six problems faced by Small scale Industries

Problems in small scale industry
1.Inadequate credit assistance:-
Timely and adequate supply of facilitates is an important problem faced by small scale industry. This is due to
the scarcity of capital, improper functioning of financial institutions, due to the weak credit worthiness of the
small units in the country.
2.Problems of skilled man power:-
The success of a small enterprises revalues around the entrepreneur, his skilled and expertise have a proper
skill is responsible for a failure of small scale industries. Insufficient human factor and unskilled man power
create innumerable problems for the survival of small units.
3.Irregular supply of raw material:-
Small scale industries face several problems in respect of to the regular and adequate of the good quality of
raw material, non-availability of sufficient quantity and quality and increased the cost of raw material creates
a problem.
4.No organized marketing:-
Small scale industries lack organized marketing skills unlike the large units, their products do not hold goods in
the market and find very difficult complete with the products produced by large units.
5.Lack of good equipment & machinery:-
Small scale industries find it very difficult to employee a latest equipment and machinery which helps them
produce the good quality products. Most of them employee hold and outdated machineries.
6.)Observe of adequate inflow structure:-
Due of the major requirements for the success of any business is the right inflow structure which includes
goods, power, water, drainage facilities etc… . As small scale industries are located in rural backward areas
where there is no proper inflow structural facilities which affects a growth and life of small scale industries.
7)Competition from large scale units and imported goods:-
Small scale industries finding very difficult to complete with the goods manufacture by large unit due to their
price, quality, service promotion etc… which are for better than small scale industries.
8)Other problems:-
Beside the above problem small scale industries also faced other numerous problem like poor project
planning, managerial inadequate old and outdated besides and huge member of bogus concerns, labour
problems and lack of training skills etc… .
4.Explain any six component of Business Plan?

Steps in the business plan / outline of a business plan
The outline of a business plan is as follows:
I. Introductory page:
This is the title or cover page that provides a brief summary of the business plans contents. It should
contain the following:

1. Name and address of the company

2. Name of the entrepreneur, telephone no, fax, email address, website address
3. Paragraph describing the company and nature of business.
4. Amount of Finance required
5. A statement of the confidentiality of the report for security purposes.
II. Executive Summary:

The section of the plan is written after the total plan is prepared. The executive summary should
stimulate the interest of the potential investors. It would highlight in a concise and convincing
manner the key points in the business plan.
III. Environmental and industry analysis :
Environmental analysis is the assessment of external uncontrollable variables that may impact the
business plan. Examples of these factors are
i)Economy: Trends in GNP, Unemployment, disposable income and on
ii)Culture: shifts in the population by demographics, shifts in attitudes concern for environment trends in
Safety, health and Nutrition.
iii) Technology: Potential technology developments
iv) Legal Concerns:
Legal issues in starting the ventures, future legislation, deregulation of prices, restriction on media advertising
and safety regulations. Once an assessment of the environment is complete the entrepreneur should conduct
an Industry analysis that will focus on specific industry trends and competitive strategies. Some examples of
these factors are.
i)Industry demand: whether market is growing or decline, the number of new competitors and possible
changes in consumer needs.
ii)Competition: potential threats from the larger corporations, their strengths and Weakness.
IV. Description of the Venture:
This provide complete overview of the products, services and operations of the new venture. This statement
describes the nature of the business and what entrepreneur hopes to accomplish with that business.
V Production Plan:
This plan will describes the complete manufacture process, the sub contractors , including location, reasons
for selecting, costs and contracts that have been completed.
VI Marketing plan;
It describes the Market condition and the strategy related to how products and services will be distributed,
priced and promoted.
VII) Organizational Plan:
It describes the form of ownership and lines of authority of Members of a new venture.

VIII) Assessment of Risk:

This section will identify the potential hazards and alternative strategies to meet business plan goals and
objectives.
IX. Financial Plan:
This gives the projections of key financial data that determine economic feasibility and necessary financial
investment commitment.
X Appendix :
This section generally contains any backup material that is not necessary in the text of the document.
5.Explain any six factors affecting product selection

Product selection is the process in which retailer or producer choose the shape of material of the product as
per the market demand.
In selecting product for your business venture the following factors must be taken into considerartion.
1.Supply Gap:
The size of the unsatisfied market demand which constitute a source of Business opportunity will dictate to a
great extent the need to select a particular product. The product with the highest chances of success as
reflected in its demand will be selected. In essence there must be existing obvious demand for the selected
product.
2.Fund:
The size of the funds that can be mobilized is another important factor. Adequate fund is needed to develop,
produce, Promote, sell and distribute the product selected.
3.Availability and access to raw materials:
Different products require different raw materials. The source of quality and quantity of raw materials needed
are factors to be considered, are the raw materials available in sufficient quantities? Where the sources of raw
materials available? Are they accessible? Could they be source locally or imported? Satisfactory answers
should be provided to these many other relevant questions.
4.Technical Implications:
The production process for the product needs to be considered. There is a need to know the technical
implications of the selected product on the existing product line ,availability technology and even the labour
force. The choice of a particular product may require either acquisition of the machineries or refurbishing old
ones. The product itself must be technically satisfactory and acceptable to the user.
5.Profitability /Marketability:
Most often the product that has the highest product potential is often selected. However a product may be
selected on the basis of its ability to utilize idle capacity or complement the sale of the existing products. The
product must be marketable.

6.Availability of qualified personnel:

Qualify personnel to handle the production and marketing of the product must be available. The cost of the
producing the product must be kept to the minimum by reducing wastages. This is achievable through
competent hands.
7.Government policies:
This is quite often an uncontrollable factor. This focuses of government policies can significantly influence the
selection of the product. For instance a package of incentives from government for a product with 100% local
input contents can change the direction of the business ‘s R&D and hence the product selected.
8.Government Objectives:
The contributions of the product to the realization of the company’s short and long range objectives must be
considered before selection for instance the company goal may be the achievement of sale growth, sales
stability or enhancement of the company’s social value.
6.Explain any six financial incentives available to small scale industries?

1.State financial corporations:
State financial corporations are established by respective states are playing a significant role in providing
financial assistance and other types of support to SSIs. State financial corporation Act was passed in 1951
provides long term finance for certain identified group of items in manufacturing as well as services sectors.
2.KSFC:
KSFC extends financial assistance to set up tiny ,small, medium and large scale industrial units in Karnataka.
Finances such as long term and medium term loans ,lease ands hire purchase finances are provided by KFSC
It also renders merchant banking services. Fund based activities are also considered.
3.SIDBI:
SIDBI was established in 1990. This institution through its five regional offices and about 33 branches provides
various types of finance to SSI. The types are 1. Direct finance 2.Foreign Currency loans 3. Venture capital
fund 4. Refinancing and 5.Micro financing
4.Various Commercial Banks:
Various commercial banks also extending financial assistance to SSI through their schemes such as priority
sector leading ,Institutional arrangements, General purpose term loans ,Entrepreneur scheme, Equity fund
schemes, srishakthi package, Margin money scheme ,Mahila udhayam Nidhi scheme ,Export finance scheme.
Etc.
5.KSIDC:
KSIDC is another institution which extends financial support to SSis in Karnataka. This organization of
Karnataka has no specific financial programme for adaptation of pollution control etc. but provides medium
and long term loans equipment financing and direct equity participation.
6.IFCI:

IFCI the first development financial institution in India was established in 1948 as a statutory corporation.
Besides providing project finance, financial services ,nonproject specific assistance, corporate advisory
services. IFCI has promoted institution such as National Stock Exchange , Management Development Institute.
ICRA LTD ,LIC Housing Finance Ltd, and a Number of TCOs.
III. Section –C answer any three questions: 3X14=42
7.Explain any seven advantages and seven disadvantages of being an Entrepreneur?

Advantages of Being an Entrepreneur or (Pros)
1. Bridge the gap between knowledge and application:

Entrepreneur is the only person who can bridge the gap between knowledge and its applications. If the
knowledge is new, that is not market. Entrepreneur can convert the knowledge into an economic activity and
gain out of it.
2. Converting an idea into money:
Being an entrepreneur, one may push up one’s innovative ideas into reality. A entrepreneur is dynamic,
creative, skilful and is ready to take calculate risk, he or she puts societal resources into societal use.
3. Be your own boss:
Many people would like to enjoy their lives independently. They feel excited doing so entrepreneur posses
high capacity to take risk and have adventure life.
4. Originality respected:
The creative and originality business ideas of an individual can be used for societal benefit and with there the
originator respected in the society.
5. Competition
By adapting innovative ideas of entrepreneur the product or services can be produced at low cost. These
facilities the organization to face competition in the market.
6.Better Utilization of Skills and knowledge:
The advantages of becoming an entrepreneur is that creative skills and knowledge of an individual can be for
the used for the benefit of the society otherwise it would go waste.
7.Alternative to current career:
Many people with entrepreneur skills will be working for others to reasons know as unknown of them they are
called Intrepreneurs at that time they get frustrated working with other would like to change the position and
employer.
8.Business Opportunity:
In any society is the business development process is the continuous activity. in such an atmosphere many
business opportunities will be cropping up in different sizes and magnitude. Many business opportunity can be
created by the people with entrepreneurial ability.

Disadvantages or Cons
1. Remuneration:
Entrepreneurs works on his own for economic gain but he or she is not assured of positive economic gain.
It will work both the ways. On the one hand becoming entrepreneur they may get regular income.
2. Benefits:
Being an entrepreneur a person may not gain much in initial stages. The startup programs being more, it
takes considerable time to reap the benefit of being an entrepreneur. Even in long run benefits will not be
extraordinary.
3. Time Management:
As entrepreneur will be taking more risk ,time is very precious for him. Time is money for him. One cannot
enjoy time in self employment as one enjoys in paid employment. managing time becomes critical factor.
4. Management:
Entrepreneur will be the boss of one’s own business and decision making will be again a critical factor. One
should have sound decision support system to take good decision. Decision should not be postponed.
5. Experience:
An unskilled person with an unskilled staff will have difficult time in running the business. working with the
employees who don’t know the ropes becomes a tough time to the entrepreneur.
8.Explain the different patterns of the ownership of a small scale Industry and also two advantages and two
dis advantages of each pattern?
Ownership patterns
1. Sole proprietorship 2.Partnership concern c.Joint stock company d.Co-operative society e. HUF
I. Sole proprietorship
This is the simplest business firm under while one person operates the business. This is not a legal entity .
It refers to a person who are the business and he is personally responsible for its debts. Sole proprietorship
may be defined as a firm of business organization which an individual interest his own capital use his own
skills, intelligence, experience and education to manage the business affairs and he is sole responsible for a
result of its operations and obligations.
Advantages of sole proprietorship Disadvantages:-
1.Ease of formation 1.Liability
2.Tax benefits 2.Lack of continuity
3.Employment 3.Difficulty in rising capital
4.Decision making 4.Risky
5.Control 5.Heavy burden.
6.Simplicity etc….

II. Partnership firm

It is the legal firm of business operations between two or more individuals who shares management and
profits.
Advantages of partnership:- Disadvantages of Partnership

1. Simplicity in formation 1. Unlimited liability
2. 2.Simplicity in dissolution 2. Limited life of the firm
3. Sufficient capital 3. Limited capital
4. Skilled workers 4. Limited liability
5. Secure of responsibility 5. Limited no of partners
6. Satisfaction of partners 6. Legal defects
7. Secrecy 7. lack of Interest
8. Social benefits 8. Lack of public confident
9. Expansion of business 9. Lack of prompt decision
10. Flexibility 10. Lack of secrecy
11. Tax facility 11. Chances of dispute among partners
12. Observe of fraud 12. Expansion problem
13. Frozen Investment
14. Risk of Loss
15. Transfer of rights
JOINT STOCK COMPANY

A joint stock company is a Business activity that is owned by share holders.
A joint stock company is a voluntary association of individuals for profit, having a capital divided into
transferable shares, the ownership of which is the condition of membership.
Advantages of Joint stock Dis advantages of Joint stock
Feature of joint stock company company company
1. Association of persons 1.Huge resources 1. Problems in formation
2. Artificial person 2.Limited liability 2. Oligarchic management
3. Separate legal entity 3.Transferability of shares 3. Problem with respect to decision
4. Limited liability 4.Efficient Management making
5. Transferability of shares 5.Scope for expansion 4. Separation of ownership and
6. Common seal 6.Economies of large scale management
7. Separation of ownership operation 5. No secrecy can be maintained
from management 7.Public confidence 6. Speculation in shares
8. Perpetual succession 8.Social benefits 7. Fraudulent in management
9. Investment facilities 9.Tax benefits 8.Concentration of economic power

10. Accountability 10Diffused risk 9. Excessive government regulations.

11. Restricted action 11.Stability of existence
Co-operative Society
A co-operative society is an autonomous association of person who voluntarily co-operate for their social,
economic and cultural benefits.
Features of co-operative society Advantages of co-operative Disadvantages of co-operative

1.Voluntary association society society
2.Open membership 1.Easy to form 1Limited resources
3.Variable nature of members 2.No observation for membership 2.Inefficient management
liability 3.Limited liability 3.Lack of secrecy
4.Democratic control 4.Service motive 4.Cash trading
5.Limited reward to capital 5.Democratic management 5.Excessive government
investment 6.Stability and continuity intervention
6.Service motive 7.Economic operations 6.Observe of motivation
7.Perfect unity 8.Surplus share by the members 7.Disputes and difference
8. A legal entity 9.State patronage
9.Explain any ten factors affecting the location of a small scale Industry?
Factors taken while selecting the suitable site for a plant:
1.Law and order situation:
Plant location must be at that place where law and order situation is in control. If a state has bad law and
order situation, then the business must not be located within that state.
2.Availability of infrastructure facilities:
Plant location which is selected must have proper infrastructure facilities. Without good infrastructures
facilities, it will be difficult to do business efficiently.
3.Good industrial relations:
Plant location must be at those places where good industrial- relations are maintained. Entrepreneurs do not
want to locate their business at places where anti-social elements are rampant.
4.Availability of skilled workforce:
Plant location must be convenient and easily accessible to skilled workforce. The entrepreneur must be
consider the availability of competent skilled workforce at a particular place to locate their business.
5.Social Infrastructure:
There is a need for social infrastructure not only for employees but also for the development of their families.
The availability of social infrastructure will increase employees welfare .
6.Investor friendly attitude :
Plant location must be in those states whose governments have an investor friendly attitude.

Government must give attractive incentive and concessions to those who start business units in their states.
7.Nearness to Market:
Plant location must be near a market. Every business unit depends on a market for selling its goods and
services. The goods and services must reach the market on time, and be available to the consumers at a low
price
8. Nearness to raw materials sources:
Plant location must be usually near to the source of raw materials. It is important in the business to get the
raw materials in time and at a reasonable price.
9.Nearness to supporting industries:
Plant location must be near its supporting industries and services . if it purchases spare parts from an
outside agency then these agency must be located very close to the business.
10.Safety requirements:
Plant location must meet all essential safety requirements. Due to air ,water and noise pollution, some
factories have a bad effect on the health of the people.
10. Explain any six pitfalls in preparing a Business plan and also the techniques of avoiding the same.
Pitfalls of Business Planning
The pitfalls of Business planning are: The pitfalls are avoided in Business planning by the
following ways:
1. Incredible Financial projections

2. Lack of a viable opportunity 1. Using Business systems to define and control
3. No clear route to Market Workflow
4. Overestimation of revenues 2. Effective organization Structure
5. Lack of Good cash flow management 3. Break down tasks into a step by step process with
6. No clear objectives checkpoints to ensure quality.
7. No evidence of real demand/ Over estimation of 4 .Understand payment terms
demand 5.Cover legal bases
8. Business plan inconsistencies. 6.Define banking boundaries
9. Playing down the competition 7.Identify the target markets
10. Rushing the Output 8.Proper cash flow management
11. Capacity utilization 9. Understand the competition
12. Over estimating of demand
13. Un realistic pricing strategies
14. Underestimation of project demand
15. Wrong selection of Location
16. Lack of Understanding of appropriate technology

11.Explain any seven causes of Industrial sickness?

Industrial sickness:
Industrial sickness can be defined a condition wherein an industrial unit fails to generate surplus on a
continues basis and depends on frequent infusion of external funds.
Causes for industrial sickness:
I . Internal causes:
III. External causes:
1.Poor handling of labour
2.Poor management of strategies 1.Infrastructural bottle necks
3.Choosing wrong idea or industry 2.Inadequate availability of raw materials
4.Department structure of industry 3.Continuous power shortage
5.Poor management of prevailing industry 4.Financial Bottle neck
6.Unsatisfactory organization. 5.Non availability of adequate finance
7.Bad quality maintenance 6.Govt control and policies
8.Poor utilization of capacity 7.Market constraints
9.Lack of project implementation 8.Market saturation
Unsatisfactory training facilities 9.Technological changes
10. Changes in Govt policy
11. Natural calamities
12. Political situation
13. War and strikes
14. Fiscal duties are more
15. Taste and preference of customer may change.

V SEMESTER BBA EXAMINATION NOV/DEC2018

I.SECTION A Answer any five 5X2=10

a.Who is an entrepreneur?
A person who sets up a business or businesses, taking on financial risks in the hope of profit”.or
An entrepreneur an individual who bears the risk of operating a business in the face of uncertainty about the
future conditions. “or
Entrepreneur is an individual who takes risk and starts something new.
b.Mention any two problems faced by SSI?
1.Inadequate credit assistance:- 2.power supply 3.Problems of skilled man power:-
4.Irregular supply of raw material:5No organized marketing:-6. Lack of good equipment & machinery:
7)Competition from large scale units and imported goods:-
c.Mention any two factors affecting Project selection
1.Investment size,2location,3,financial feasibility,4,market feasibility,5.Ownership
6.Manpower,7.machinery and equipment,8.government policy
d.Mention any two common pitfalls to be avoided while preparing BP
1.Unrealistic goals,2.un measurable goals,3.no commitment.4failure to recognize the future
problems,5.inexperiences6.potential threats or weakness, no customer need
e.Expnad the following:
SFC-state finance corporation
TESCOK- Technical Consultancy Services Organization of Karnataka.
f. Mention any two difference b/w Entrepreneur and enterprise
Entrepreneur Enterprise
Entrepreneur is person Enterprise is the business unit
He is a risk taker It is unit involving risk and uncertainty
He procures factors of production It convert raw materials in to finished goods
g. Mention any two objectives of SIDBI.

Promotion, Financing, Development, Co-coordinating, Expansion, diversification, modernization, technology
up gradation, quality improvement rehabilitation of existing units.

Section –B any three 3X6=18

2.Explain any six points to bring out the importance of entrepreneurship.
1.Growth of entrepreneurship 2.creation of job opportunities 3.Innovation4.Impact on community
development,5.the consequences of business failure,6.Enhancing standard of living7.promotes research and
development, 8.economic development .
3.Explain any six characteristics of SSI

1.less capital 2. Labour intensive 3. Work done by manualor small machine and tools
4.Less govt interference 5. Small scale production,6.less profit. 6old and outdated machines
7.flexibilty 8.Localised operation,9.less gestation period.10 one man show.
4.Explain any six factors affecting identification of business opportunity.
1. Market Size,2Cash flow management. 3.customer desire
4.Pick the growing sector, 5.Product differentiation, 6.Management skills set
5.Explain any six features of business plan.
1.Bp should be realistic 2.BP should be accurate 3.it should highlight key areas
4. Bp is a road map 5.Action plan 6.acts as blue print 7.helps to analyse alternatives
8.it should be complete 9.consider the competitor strength and weakness.10 prepare financial data.
6.Mention any twelve causes of Industrial Sickness.
1. Wrong selection of product ,process layout Under estimation of the project cost.
2. The existing manufacturing process may be outdated.
3. Selection of wrong project site resulting increasing of transport cost etc.
4. Undue investments of fixed assets.
5. Defective working of plant and machinery affecting quality of the production.
6. An improper choice of technology.
7. Inadequate attention towards maintenance management.
8. Lack of inventory and material management leading to hi inventories and wastages.
9. Absence of scientific and efficient quality control system.
10. Unsuitability of product mix
11. An improper demand estimation
12. Insufficient sale promotion activities
13. Improper pricing policies
14. Defective capital structure
15. Inefficient management of working capital
16. Unskilled and semi skilled labour
17. Improper wage ,increment and promotion policies.
18. Absence of Management Information System
19. Problems in partnership leads to sick

Section-C any three 3X14=42

7.Explain any fourteen characteristics of an Entrepreneur.
1.calculated risk taker2.Innovator3.creative.4Achivement Motivated,5.Self-confident
6.Socially responsible7.Optimistic8,Decision making,9,Communication ability10.leadership
11.A venture capitalist,12 Ability to spot and exploit opportunities.13Visonary,14technically competent.
8.Explain any ten advantages of Small scale industry.
1.Employment generation.2.Mobilisattion of resources,3.Equitable distribution of income
4.Regional dispersal of industries,5.promoting exports .6better industrial relations.7.less capital requirement,8
brings foreign exchange by exporting,9 using local resources,10.economic development of the country
9.What is product selection? Explain any eight factors affecting product selection.
1.technical knowledge,2Availability of market,3.Finicial strength.4.position of competition
5.Priority of products,6Seasonal stability.7.Restriction on imports,8.Supply of raw materials.
9.location advantage 10.Government policy,11.Licensing system.12 tax exemption and rebate.
13.labour.
10.What is Business plan? Explain any eight advantages of preparing a Business Plan
1.financial sources.2.Road map to business.3.Blue print of business4.Market share
5.ROI 6.key hastles 7.Risks and uncertainties 8.guidence 9.key areas 10. Production plan
11.alternatives 12.reducing cost and time.13. customer requirements.14.profit
11.What is an Industrial estate? Explain the following (any six points each)
Industrial Estates
 An industrial estate is a place where the required facilities and factory accommodation are provided
by the government to the entrepreneurs to establish their industries there.
a)Objectives of industrial estates
1. To provide infrastructure and infrastructure facilities
2.To encourage the development of SSI
3.To spread the industries in rural and backward areas
4.To develop the entrepreneurship by creating industries.
5. Ensure infrastructure facilities
6 To provide accommodation for plant and machinery
Types of Industrial Estates:
I. On The Basis of Functions:
(i) General type industrial estates, (ii) Special type industrial estates.
III. On the Basis of the Other Variants:
(a) Ancillary Industrial Estates: (b) Functional Industrial Estates: c) The Workshop -bay:
IV.On the basis ownership, industrial estates are classified into following four types:
1. Government Industrial Estates, 2. Private Industrial Estates,
3. Co-operative Industrial Estates. 4. Municipal Industrial Estates

V SEMESTER BBA EXAMINATION NOV/DEC 2017

Entrepreneurial Management Time 3 hrs marks: 70
I. Section A Answer any 5 sub questions. Each questions carries 2 marks 5 X 2 =10
a. 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 is called Entrepreneurship.
b. Define Business Opportunity?
A business opportunity is a packaged business investment that allows the buyer to begin a business.
c. State any 2 pitfalls of Business plan?
1. NO clear Objectives 2.incrediable financial projections 3. Lack of good cash flow management
d. EXPAND:
DIC= District Industrial center
AWAKE= Association of women entrepreneurs of karnataka
e. Define Ancillary Industry?
An ancillary industry is a subsidiary industry or supplementary industry to a main industry.
f. What is seed capital?
Seed capital is the initial capital used when starting a business. It often comes from the founders personal
assets friends and family. Seed capital is for increasing initial operating expenses and attracting venture
capitalists towards the company.
g. What is mean by tax holiday?
Tax holiday refers to a government incentive program that offers a tax reduction or tax elimination to
businesses. Tax holidays are often used to reduce sales taxes by local governments, but they are also
commonly used by governments in developing countries to help stimulate foreign investment.
II. Section B Answer any 3 questions . Each questions carries 6 Marks. 3 X 6 = 18

2.Write the difference between Entrepreneur and Manager.
Differences between Manager and Entrepreneur
Bases of Difference Entrepreneur Manager
Status An entrepreneur is the owner of A manager is the servant in the

the enterprise. enterprise owned by the
entrepreneur.
Motive The main motive of an entrepre- But, the main motive of a manager
neur is to start a venture by setting is to render his services in an
up an enterprise. enterprise

Risk Bearing An entrepreneur being the owner A manager as a servant does not
of the enterprise assumes all risks bear any risk involved in the
and uncertainty involved in run- enterprise.
ning the enterprise.
Rewards The reward an entrepreneur gets A manager gets salary as reward

for bearing risks involved in the for the services rendered by him in
enterprise is profit which is highly the enterprise. Salary of a manager
uncertain. is certain and fixed.
3.State the basic objective of SSI’s

1.creating employment opportunities in urban and Rural Areas
2.Technology up gradation
3.Quality Enhancement
4.Enterprise promotion with emphasis on Rural Industrialization
5.Human Resources Development of the SSI sector
6.Infrastructure Development
7.Technology Transfer
8.Optimum Utilization of resources
9.To enhance economic growth
10.Creates Economic stability
4.Explain the financial aspects of Business plan?

1. Financial Aspect:
A financial can be a Budget, a plan for spending and saving for future income. This plan allocate future
income to various types of various types of expenses. A financial plan is also called as investment plan.
i)Cash Budget:
it is an estimate of cash receipts s from all sources and cash payments for all purposes and net cash balances
during the Budget period. It ensures that the business has adequate cash to meet its requirements.
ii) Working capital:

Working capital refers to the cash a business requires for day to day operations, or more specifically for
specifically purchasing of Raw materials, paying rent, wages , transport expenses, inventory maintenance .
iii) Income Statement:
The Performa of income statement or projected income statement is a projection of Income for a period of
time in future. The analyst may wish to evaluate each component of the cost of goods sold. A detailed study
analysis of purchases, production wages and overhead costs is likely to produce the most accurate forecast.

iv) Cash flow statement:

A statement of changes in the financial position of a firm on cash basis is called cash flow statement. Such a
statement enumerates net effects of the various business transactions on cash. A cash flow statement
summarizes the causes of changes in cash position of a business enterprise between dates of two balance
sheets.
v) Balance sheet:
Performa balance sheet is forecasting of flow of funds and according to this the estimation of every item
should be made and checked. The preparation of Performa balance sheet is made on the basis of Performa
income statement and supporting schedules and budgets.
Vi. Break even analysis:
Break Even Point(BEP) refers to the level of operation at which the project neither earns profits nor incurs loss.
Calculation of BEP for the given cost and price levels indicates the minimum capacity utilization that the that
the project should be aimed at in order to be in a no profit , no loss situation.
VII. Equity and debt funds:
Equity financing is required to start up a Business Part of debt fund is also taken as it helps purchase of
machinery and other fixed assets, whereas short term debt can be utilized for working capital purpose. Major
source of financing will be assistance from bank and other financial institutions.
5.Write a note on Industrial Estate?

Industrial Estates
 An industrial estate is a place where the required facilities and factory accommodation are provided
by the government to the entrepreneurs to establish their industries there.
 industrial region, industrial park, industrial area, industrial zone, etc.
ROLE
1. Provide infrastructure and accommodation facilities to the entrepreneurs
2. Encourage the development of small-scale industries in the country
3. Decentralize industries to the rural and backward areas
4. Encourage ancillarisation in surroundings of major industrial units and
5. Develop entrepreneurship by creating a congenial climate to run the industries in these estates/area
/township, etc.
Types of Industrial Estates:
Industrial Estates are classified on various bases.
The prominent ones are:
I. On The Basis of Functions:
On the basis of functions, industrial estates are broadly classified into two types:
(i) General type industrial estates, and
(ii) Special type industrial estates.
General Type Industrial Estate:
These are also called as conventional or composite industrial estates. These provide accommodation to
a wide variety and range of industrial concerns.

6.Give a note on scanning of Business Environment?

Environmental scanning:
Environmental scanning involves studying and interpreting the sweep of social, political, economic ecological
and technological events in an effort to spot budding trends and conditions that could become driving forces.
Environmental scanning involves the scanning of internal and external environments.
Need for environmental scanning:
1. Identification Strength
2. Identification of Weakness
3. Identification of Opportunities
4. Identification of Threats
5. Optimum use of resources
6. Survival and Growth
7. To plan for long term business Strategy
8. Helps in decision making
III. Section c Answer any 3 questions. Each questions carries 14 marks. 3 X 14 = 42

7.Explain the role of SSI in the economic development of our country?
Role played by SSI in the development of Indian Economy
1. Employment Generation
SME sector in India creates large employment opportunities for Indian. Next only to agriculture has been
estimated that a lakh rupees of investment in fixed asset in SSI generate employment for 4 persons.
2. Production:
The SME sectors plays a vital role for the growth of the country. It contributes 40% of the gross
Manufacturing to the Indian economy.
3. Export Contribution:
SME sectors plays major role in India ‘s present export performance .45%- 50% of the Indian exports is
being contributed by SME sectors. The no of SSI that undertake direct exports would be more than 5000.
4. Innovation and Development:
SME are quick in assimilating new design trends ,developing contemporary products and bringing them to
the market place ahead of competition .
5. Utilizing Resources Optimally:
SME are notably skillful in the maximizing the use of the scarce capital resources and are able to partner
with large scale firms by supplying locally available raw materials in unprocessed or semi processed forms.
6. Developing Entrepreneurial capacity:
SME can act as the seed bed for the development of entrepreneurial skills and innovation. They provide
part in the provision of services in the community. they can make important contribution to the regional
development.

7. Increases GDP:
The SME sectors contributes about 9 percent of the country’s GDP, 45% of manufactured output and 40 %
of its exports. The SME provides employment to over million persons through more than 31 million
enterprises with lower labour to capital ratio and produces 6000 products.
8. Feeder to Large Scale Industries:
SME is complementary to the Large Scale Industries manufactured various types of component s, spare
parts, tools and accessories which required by the large scale sector.
9. Opportunities for Artisan:
In villages artisan/ specialist are having expertise in different fields are found. Because of lack of
opportunities their skills do not come to the light. SME industries are provide such a industry.
8.Explain in detail the format of Business plan?

I.Introductory page:
1.Name and address of the company
2.Name of the entrepreneur, telephone no, fax, email address, website address
3.Paragraph describing the company and nature of business.
4.Amount of Finance required
II.Executive Summary:
The section of the plan is written after the total plan is prepared. The executive summary should stimulate the
interest of the potential investors. It would highlight in a concise and convincing manner the key points in the
business plan.
III.Environmental and industry analysis :
Environmental analysis is the assessment of external uncontrollable variables that may impact the
business plan. Examples of these factors are
iv) Legal Concerns:
these factors are.

I)Industry demand: whether market is growing or decline, the number of new competitors and possible
V. Description of the Venture:
VI. Production Plan:
VII Marketing plan;
VIII) Organizational Plan:
IX) Assessment of Risk:
objectives.
X. Financial Plan:
XI. Appendix :
9. Discuss the various steps involved for commencing a business

The various steps involved in starting business:
1. Identification and evaluation of the opportunity:
Consumers and business associates are the best source of ideas for a new venture. Many entrepreneurs
identify business opportunities through discussions with the retailers, wholesalers or manufacturer’s
representative. Lastly, technically oriented people often conceptualize business opportunities when working
on other projects.
2. Developing a business plan:
A business plan is the description of the future direction of business. A good business plan is not only
important in developing the opportunity but also essential in determining the resources required, obtaining
these resources, and successfully managing the resulting venture. A business plan is often an integration of
functional plans such as marketing, finance, manufacturing, and human resources.
3. Determining the resources required:
The resources need for starting the venture must also be determined. The process starts with an appraisal of
existing resources, if any, with the entrepreneur. Resources that are critical must then be distinguished from

those that are just helpful. Alternative suppliers of these resources, along with their needs and desires, must
be identified, the entrepreneur should try to structure a deal that enables the resources to be acquired at the
lowest possible cost and the least cost control.
4.Project appraisal and feasibility plan:
The exercise of project appraisal is the assessment of a project in terms of its economic, social, and financial
viability. This exercise calls for a complete scanning of the project. The appraisal of a project is undertaken by
the financial institutions with the twin objective of determining the market potential of a project and selecting
an optional strategy.
5. Managing the venture:
If it has been decided to go ahead with the venture , the entrepreneur must employ the acquired resources
through the implementation of the business plan. Operational problems of a growing enterprise must also be
examined. This involves implementing a management style and structure, as well as determining the key
variables for success. A control system must be identified so that any problem area can be carefully
monitored.
10.What are the causes for industrial sickness and remedial measures taken by the government?
Industrial sickness:
A sick industrial unit may be defined as one when it fails to generate surplus on a continuous basis and
depend on frequent infusion of external funds.
Industrial sickness can be defined a condition wherein an industrial unit fails to generate surplus on a
continues basis and depends on frequent infusion of external funds.
Causes for industrial sickness:
I . Internal causes: IV. External causes:
1.Poor handling of labour 1.Infrastructural bottle necks

2.Poor management of strategies 2.Inadequate availability of raw materials
3.Choosing wrong idea or industry 3.Continuous power shortage
4.Department structure of industry 4.Financial Bottle neck
5.Poor management of prevailing industry 5.Non availability of adequate finance
6.Unsatisfactory organization. 6.Govt control and policies
7.Bad quality maintenance 7.Market constraints
8.Poor utilization of capacity 8.Market saturation
9.Lack of project implementation 9.Technological changes
10.Unsatisfactory training facilities 10. Changes in Govt policy
11. Natural calamities
12. Political situation
13. War and strikes
14. Fiscal duties are more
15. Taste and preference of customer may
change.

Remedies to prevent the industrial sickness

The remedies to prevent sickness are as follows:
1.Programme of monitoring: A programme of monitoring and nursing them during infancy is essential
2.Financial Institutions and Banks: Financial institutions and banks should initiate necessary corrective action
for sick or prone to sickness units based on diagnostic studies.
3.Restore sick units to financial health: wherever possible attempts should be made to sick units to financial
health.
4.Excessive concern over Unemployment: Excessive concern over unemployment resulting from the closure
of sick unit is unwanted.
5.Single window clearing agency: The BIFR should play the role of a single window cleaning agency.
6. Incentives: Incentives should be provided to professional managers helping in reviving sick units.
7.Debt equity ratios: Debt equity ratio ought to be realistic. Fiscal too requires rationalization.
8.Treatment of capital intensive Units: Treatment of capital intensive units prone to sickness has to be on a
different footing than tackling of sickness in industry in general.
9. Government can accord priority: The government can accord priority in the allocation of scarce raw
materials, extended marketing assistance and grant concessions to small units which show better record of
performance.
10.separate division in BIFR: A separate division in BIFR should be set up to deal with sickness in small scale
industries.
11.Skill,Technology and Finance : The important criterion for takeover of sick unit by another company should
be whether the company taking over the sick unit has skill technology and finance to save it.
11.Discuss the various Taxation benefits available to SSI’s

The various tax concessions given to small scale industries are as follows:
1. TAX Holiday: New industrial units are exempted from payment of Income tax on their profits upto 6%
p.a on their capital employed. This exemption is allowed for sa period of Five years from the
commencement of production.
2. Depreciation: A small scale is entitled to deduction on depreciation account on buildings, Furniture,
plant and machinery. The depreciation is allowed subject to a maximum of Rs 20 lakhs.
3. Investment Allowances: Investment Allowance is allowed @ 25% of the cost of acquisition of the new
plant or machinery installed under sec-31 of IT Act.
4. Expenditure Allowance: The following deduction in respect of expenditure on scientific research are
allowed.
a. Any revenue expenditure incurred incurred on scientific research related to business.
b. Any sum paid to a scientific research association or a university, college, Institution or Public
company which has the object the undertaking of a scientific research.
c. Any capital expenditure incurred on scientific research related to the business.

5. Amortisation of preliminary Expenses: The preliminary expenses incurred in connection with the
preparation of feasibility report, engineering expenses and legal expenses for drafting agreements for
the setting up a new industrial unit or expansion of existing units are allowed to be written off.
6. Tax concessions for small scale industries in Rural Areas:
The small scale units set up in rural areas entitled to a deduction of 20% of the profits and gains from
their total income. This concession is allowed for small scale units started in 24 districts declared as
backward areas by the planning commission.
7. Rehabilitation Allowance :
The business units which has been discontinued on account of flood, cyclone, earthquake or other natural
calamities is granted rehabilitation allowance which is equivalent to 60 % of the amount of deduction
allowable to the unit.
8.Exemption on Excise duty:
The exemption on excise duty limit is raised from RS 50 lakhs to Rs 1crore to improve the competitiveness of
small scale sector.

V SEMESTER BBA EXAMINATION NOV/DEC 2016

Entrepreneurial Management Time 3 hrs marks: 70
I.Section A Answer any 5 sub questions. Each questions carries 2 marks 5 X 2 =10
a. Who is an Entrepreneur?
A person who organizes and manages any enterprises, especially a business usually with considerable initiative
and risk is called entrepreneur.
b.What is an entrepreneurship development programme?

EDP is a programme designed to help a person in strengthening his entrepreneurial motive and in acquiring
skills and abilities necessary for playing his entrepreneurial role effectively.
c. What do you mean by SSI?

In India the ministry of Commerce and Industries defined a small scale Industry as a unit with a capital
investment of not more than RS 5 lakhs irrespective of the number of persons employed.
d.What is Business Opportunity?

A business opportunity is a packaged business investment that allows the buyer to begin a business.
Business opportunity involves sale or lease of any product, services ,equipment etc that will enable the
purchaser licensing to begin a business.
e.Define Business plan?

The business plan is written document prepared by the entrepreneur that describes all the relevant external
and internal elements involved in starting a new venture.
A business plan is a blue print of step by step process that would be followed to convert business idea into
successful business venture.
f.Expand
SFC= State Financial Corporation
SIDBI= Small Industries Development Bank Of India
g.What do you mean by Seed Capital?

Seed capital is the initial capital used when starting a business. It often comes from the founders personal
assets friends and family. Seed capital is for increasing initial operating expenses and attracting venture
capitalists towards the company.

II. Section-B Answer any 3 questions. Each question carries 6 Marks 3 X 6 =18
2.Differentiate between entrepreneur and Manager
Differences between Manager and Entrepreneur
Bases of Difference Entrepreneur Manager
Status An entrepreneur is the owner of A manager is the servant in the

the enterprise. enterprise owned by the
entrepreneur.
Motive The main motive of an entrepre- But, the main motive of a manager
neur is to start a venture by setting is to render his services in an
up an enterprise. enterprise
Risk Bearing An entrepreneur being the owner A manager as a servant does not
of the enterprise assumes all risks bear any risk involved in the
and uncertainty involved in run- enterprise.
ning the enterprise.
Rewards The reward an entrepreneur gets A manager gets salary as reward

for bearing risks involved in the for the services rendered by him in
enterprise is profit which is highly the enterprise. Salary of a manager
uncertain. is certain and fixed.
3.Explain the various types of support extended by Government in Promoting SSIs

Multi dimensional approach has been adapted by the central and state government by establishing specialized
institutions to promote SSIs and to Offer financial support, technical support, Marketing support and
entrepreneurship development.
1.Institutions offering financial support:
Finance is the life blood of any business. In order to provide financial assistance to the entrepreneurs both
state and central governments have set up a number of Financial Institutions besides commercials banks.
Some of these arte:
1.Industrial Finance corporation of India (IFCI)
2.Industrial credit Investment Corporation of India(ICICI)
3.Industrial Development bank of India(IDBI)
4.Industrial reconstructions bank of India(IRBI)
5.Small Industries Development Bank of India(SIDBI)
II. Institutions offering Technical support
In order to provide technical training to SSIs , the Government has established the following Instituitions.
1.Centrasl institute of toll and design (CITD)
2.National Institute of Design (NID)
3.Technology Development and Information Company of India Ltd.
4.Product and process Development centers.

5.Industrial and technology consultancy organization

6.SIDO with regional testing center, Tool Design Institutes, Product and process development centers etc.
III. Institution offering Marketing Support:
1.Government stores purchase programme:
Under this programme the director general of supplies and disposal arranges the purchase and sale of stores
required by the Government of India and state governments, Public sector organizations and semi
government bodies.
2.SUB-contracting Exchange:
The exchanges invite small scale units to register their spare capacity with them and approach large scale units
for seeking orders for the registered units.
3.Trade Centers:
The trade centers collect and disseminate information relating to all type of small scale industries in the
region, giving full details of products, capacities and prices. They provide a focul point for buyers and sellers of
products.
4,Internal marketing:
National small industries corporation(NSIC) has undertaken the marketing of certain products such as hand
made paper.
5.Exhibitions and seminars:
SIDO besides encouraging entrepreneurs to participate in the state purchase programme, organizes seminars,
Exhibitions and training programmes in marketing and publishing of Information booklets etc.
4. Discuss the factors influencing project appraisal

1.Economic factors:
The economic factors take precedence over all the other aspects because the bank will not finance aproject
unless it stands assured that the project represents a high priority use of a region’s resources. An economic or
social analysis looks to see whether it will show benefits sufficiently greater than project costs to justify
investment in it.
2.Organisational Factors:
Lending institutions and banks place emphasis on the need for an efficient organization and responsible
management for project execution. If any of these is lacking the bank may advise the management on
recruitment of qualified individual. Or reorganization or creation of a new autonomous agency to operate the
project. These changes may be temporary or long term basis.
3.Managerial factors:
Good management is prerequisite for successful execution and completion of project. If the promoters are
weak and lack of business acumen, it becomes difficult to reverse the situation. Hence overall background of
the promoters, their academic qualifications, Business and industrial experience, their past performance etc
are looked into greater detail to assess their capabilities for implementing the project for finanacial assistance
is sought.

4.Financial Factors:
The financial factors of the project appraisal covers the following areas:
1.To find out the cost of production
2.Price fixation
3.Sources of funds needed for operation
4.Income and expenditure statement to know the status of the project
5.Cost effectiveness of the project
6.Return on investment
5.Market/Commercial factors
Market analysis covers the following areas:
1.Estimation of demand for the products
2.Analysis of market opportunities, product , market share
3.Marketing process of the organization
4.Marketing strategy interms of product quality, price ,design, discounts,distribution channals,packaging,
promotion etc.
6.Political factors
Political environment conditions of the area in which the project is to be located need to be taken into
account. In this context it is worthwhile to mention that lockouts,industrial peace and hormone play a
significant role in the success/ failure of the project.
5.Disscuss the importance of Business Plan

The importance of the business plan is as follows:
1. To give direction to the vision formulated by the entrepreneur
2. To objectively evaluate the prospectus of business
3. To monitor the progress after implementing business plan
4. To persuade others to join business
5. To seek loans from financial institutions
6. To visualize concept in terms of market availability, organizational, operational, and financial feasibility
7. To guide entrepreneur in actual implementation of plan
8. To identify actual strength and weakness of plan
9. To identify challenges in terms of opportunities and threats from the external markets.
10.To clarify ideas and identify gaps in management information about their business, competitors and
market.
11.To identify the resources that would be required to implement the plan

6.What are the functions of SFC? Discuss.

State Financial corporations : (SFC)
The state finance corporation was setup under a separate State finance corporation act 1951 on lines
of industrial financial corporation set up in 1948. State finance corporation is set up at every state to develop
Small and Medium scale industries.
Functions of SFC:
1.Financial Assistance to small scale units:
The main function of SFC is to provide long term finance to small and medium scale Industrial concerns
formed as public or private limited companies, corporations forms or properitory concerns repayable with in
period of 20 years.
2.Guarenteeing loans
The SFC s guarantee loans raised by industrial concern from commercial banks and co operative banks
repayable within a period of 20 years.
3.Subscrpiption and underwriting:
The SFCs to subscribes to the debentures issued by the industrial concerns repayable within 20 years and also
underwrites the issue of stock ,shares, bonds and debentures of industrial concerns.
4.Guarentee for deferred payments
The guarantee of the deferred payments for the purchase of plant, machinery etc. within the country.
5.Acting as agent of central and state government
They act as an agent of the central or state government or some industrial financing institutions for
sanctioning and disbursing loans to small industries.
6.Capital:
The share capital of the SFCs is fixed by the concerned state government subject to the minimum of 50 lakhs
and maximum of 5 crore. This shares are subscribed by the state government, RBI and Commercial banks,
Co-operative banks of the financial institutions and the public.
III. Section –C Answer any 3 questions. 3 X 14 =42

7.Explain the problems faced by SSIs and Suggest measures to overcome these problem.
Problems in small scale industry
Timely and adequate supply of facilitates is an important problem faced by small scale industry. This is due to
the scarcity of capital, improper functioning of financial institutions, due to the weak credit worthiness of the
small units in the country.
2.Problems of skilled man power:-
The success of a small enterprises revalues around the entrepreneur, his skilled and expertise have a proper
skill is responsible for a failure of small scale industries. Insufficient human factor and unskilled man power
create innumerable problems for the survival of small units.
3.Irregular supply of raw material:-

Small scale industries face several problems in respect of to the regular and adequate of the good quality of
raw material, non-availability of sufficient quantity and quality and increased the cost of raw material creates
a problem.
4.No organized marketing:-
Small scale industries lack organized marketing skills unlike the large units, their products do not hold goods in
the market and find very difficult complete with the products produced by large units.
5.Lack of good equipment & machinery:-
Small scale industries find it very difficult to employee a latest equipment and machinery which helps them
produce the good quality products. Most of them employee hold and outdated machineries.
6.Observe of adequate inflow structure:-

Due of the major requirements for the success of any business is the right inflow structure which includes
goods, power, water, drainage facilities etc… . As small scale industries are located in rural backward areas
where there is no proper inflow structural facilities which affects a growth and life of small scale industries.
7.Competition from large scale units and imported goods:-
Small scale industries finding very difficult to complete with the goods manufacture by large unit due to their
price, quality, service promotion etc… which are for better than small scale industries.
8)Other problems:-
Beside the above problem small scale industries also faced other numerous problem like poor project
planning, managerial inadequate old and outdated besides and huge member of bogus concerns, labour
problems and lack of training skills etc… .
Remedies to solve the problems of S.S.I
The government should help S.S.I by giving credit facility from time to time at a lower rate of interest. It
should redirect the financial institutions to provide loans which is almost required by small scale industries.
2.Industrial estates:-Government as setup industrial estate in different cities this areas have been provided
with various facilities like roads, banking, facilities to encourage SSI
3. Testing laboratories:-Government as established the testing laboratories the prescribed standard of SSI
products.
4.Supply of design:-Government also provide the new models and design of the products to improve the
quality id SSI products.
5.Publicity:-
The major problem faced by SSI is promoting their products, the government as setup display centers and
show rooms, inside and outside the country to increase the scale of SSI products.
6.Facility of raw material:-
The problem of raw material is also being solved by the government by supplying the require quality and
quantity of raw material at reasonable prices.

7.Purchase of SSI products:-The government also purchases the finished product from SSI and sells them in
showroom.
8.Protection against foreign competition:-The government is giving protection to small scale industries by
improving heavy duties on improves.
9.Establishment of training units:-To update the skill & enhance the knowledge of entrepreneur the
government as setup various institutions the industrial, vocational commercial institutions.
10.Advisory Services:-To encourage the new entrepreneur different kinds of advisory services given by the
government.
11.Effective planning:-SSI should conduct a detail survey of the existing situations in SSI sectors. A detailed
feasibility studying or good project report is highly essential for small entrepreneur, to start their units.
12.Development of suitable machinery:- SSI should try to develop separate suitable machineries for taking
initiative with regard to problem faced by then the government should involve by availing suitable machinery
for small scale industries.
8.Discuss in detail the factors affecting the growth of Entrepreneurship in a country

The various factors affecting entrepreneurship are as follows:
1.Economic Factors 3.Cultural Factors:
a.Lack of adequate basic facility a. Economical Motivation 5.Availability of Resources
b.Non availability of capital b. Attaching value to Business a. Capital
c.Non availability of raw materials talent b. Human assets
d.Instability in domestic and c. Poor motives c. Raw materials
foreign policies d. Encouraging Entrepreneurship d. Infrastructure
e.Instability in the market e. Providing opportunities to
women Entrepreneur.
2.Social Factors 6.peronality factors

a.Customs and tradition 4.Political Environments:
b.Rationality of the society a. Unstable political condition a. Personality
c.Social system prevailing in a b.Government support to b. Independence
society economic development c.Compulsion
d.Social set up in countries. c.High taxes that cut returns of
Investment
d.The availability of infrastructure
e.Economic freedom in the form of
favourable legislation
f.Safe guard the labour rights

9.Explain in detail format of Business plan?

1.Introductory page:
1.Name and address of the company
2.Name of the entrepreneur, telephone no, fax, email address, website address
3.Paragraph describing the company and nature of business.
4.Amount of Finance required
2.Executive Summary:
The section of the plan is written after the total plan is prepared. The executive summary should stimulate the
interest of the potential investors. It would highlight in a concise and convincing manner the key points in the
business plan.
3.Environmental and industry analysis :
Environmental analysis is the assessment of external uncontrollable variables that may impact the business
plan. Examples of these factors are
iv) Legal Concerns:
these factors are.
i)Industry demand: whether market is growing or decline, the number of new competitors and possible
4. Description of the Venture:
5. Production Plan:

6. Marketing plan;
7. Organizational Plan:
8. Assessment of Risk:
objectives.
9. Financial Plan:
10. Appendix :
10.Discuss in detail the various taxation benefits available SSIs

The various tax concessions given to small scale industries are as follows:
1.TAX Holiday: New industrial units are exempted from payment of Income tax on their profits upto 6% p.a on
their capital employed. This exemption is allowed for sa period of Five years from the commencement of
production.
2.Depreciation: A small scale is entitled to deduction on depreciation account on buildings, Furniture, plant
and machinery. The depreciation is allowed subject to a maximum of Rs 20 lakhs.
3.Investment Allowances: Investment Allowance is allowed @ 25% of the cost of acquisition of the new plant
or machinery installed under sec-31 of IT Act.
4.Expenditure Allowance: The following deduction in respect of expenditure on scientific research are
allowed.
a. Any revenue expenditure incurred incurred on scientific research related to business.
b. Any sum paid to a scientific research association or a university, college, Institution or Public company
which has the object the undertaking of a scientific research.
c. Any capital expenditure incurred on scientific research related to the business.
5.Amortisation of preliminary Expenses: The preliminary expenses incurred in connection with the
preparation of feasibility report, engineering expenses and legal expenses for drafting agreements for the
setting up a new industrial unit or expansion of existing units are allowed to be written off.
6.Tax concessions for small scale industries in Rural Areas:
The small scale units set up in rural areas entitled to a deduction of 20% of the profits and gains from their
total income. This concession is allowed for small scale units started in 24 districts declared as backward areas
by the planning commission.

7.Rehabilitation Allowance :
The business units which has been discontinued on account of flood, cyclone, earthquake or other natural
calamities is granted rehabilitation allowance which is equivalent to 60 % of the amount of deduction
allowable to the unit.
8.Exemption on Excise duty:
The exemption on excise duty limit is raised from RS 50 lakhs to Rs 1crore to improve the competitiveness of
small scale sector.
11.Explain the assistance provided by various agencies for agencies for obtaining raw materials and
Machinery.
The government of India ‘s thrust has been in promoting small scale unit sectors with more emphasis on
industries. Both the central and state government are actively participating in developing self employment
opportunities in rural sectors by providing assistance in financing, training, infrastructure raw materials and
technology.
Government assistance to small industries and small units are as follows:
1.National Bank for Agriculture and Rural Development (NABARD):

This Institution Was Set Up In 1982 To Integrate And Promote Rural Activities. It has adopted multipurpose
strategies in promoting rural business enterprises in the country. Apart from agriculture it supports other
industries Viz small industries, rural artisans, rural industries cottage industry. NABARD organizes training
offers counseling and give development program for rural entrepreneurs.
2.The Rural Small Business Development Centre(RSBDC):
A centre sponsored by NABARD for small and medium enterprises which is set up by world association. The
main aim of RSBDC is to work for socially and economically disadvantaged individuals and groups. They
organize many programmes on skill up gradation, Rural entrepreneurship awareness, Counseling and training.
Though these various programmes several rural unemployed youth and young women learn different trades
and reap good benefits.
3.National small Industries corporations(NSIC)
The NSIC was set up in 1995 to promote and aid small business focusing on commercial aspects.
1.Supply imported goods and machines on hire purchase terms
2.Procure supply imported indigenous raw materials
3.Developing the small business by exporting their products.
4.Monitoring services
5.Awareness on technical up gradation
6.Establishing and developing software packs.
A new scheme called performance and credit rating for small units has been introduced by NSIC this ensures
the more their credit rating the more their financial assistance for their investment and capital requirement.

4.SMALL SCALE INDUSTRIES DEVBELOPMENT BANK OF INDIA (SIDBI):

This is an Apex bank to provide direct and indirect financial support under various schemes to meet credit
requirements of small business organizations.
5.The National Commission for Enterprises in the Unorganised Sector(NCEUS):
It was formed in September 2004 with main objectives being
1.Measures to improve productivity of small scale industries in the informal sector
2.To generate a sustainable employment opportunity in the rural sector.
3.To enhance the competition of the small scale sector in global environment.
4. Todevelop link between small sector and another sector like credit,Infrasrtcture,technology, raw materials
and arrange suitable up gradation for skill development.
5.Providing micro finance for informal sector.
6.Rural and Women Entrepreneurship Development (RWED):
The RWED aim at promoting a conductive business environment and also to encourage and support the
women entrepreneurs’ initiatives. It also provides training manuals for these women entrepreneurs and
render advisory services.
7.World Association for small and medium Enterprises(WASME)
Many schemes introduced by Govt of India like IRDP- integrated rural development Programme.
PMRY-Prime Minister Rojgar Yogana, TRYSEM- Training of rural youth for self –Employment.
8.Scheme of fund for Re-generational of Traditional Industries:
From the year 2005 the government established this fund of rs100 crores to make these traditional industries
more productive and to facilitate their sustainable development. This was implemented by ministry of Agro
and Rural industries in collaboration with state government.

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Question Bank previous year papers solved

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V SEMESTER BBA EXAMINATION NOV/DEC2019

I. SECTION A Answer any five 5X2=10

b. Mention any two characteristics of a Small scale Industry?

c. Mention any four limitations of a sole trading concern?

d. What is meant by feasibility Report?

e.Expand : SIS, SIDBI

f.Mention any two essential quality of an entrepreuner

g.Mention any two factors influencing entrepreneuership?

II. Section B . Answer any three questions 3X6=18

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Ability of highest order is required for success in entrepreneurship. An entrepreneur is an especially

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3.Explain any six problems faced by Small scale Industries

4.Explain any six component of Business Plan?

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1. Name and address of the company

II. Executive Summary:

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VIII) Assessment of Risk:

5.Explain any six factors affecting product selection

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6.Availability of qualified personnel:

6.Explain any six financial incentives available to small scale industries?

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III. Section –C answer any three questions: 3X14=42

7.Explain any seven advantages and seven disadvantages of being an Entrepreneur?

1. Bridge the gap between knowledge and application:

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II. Partnership firm

Advantages of partnership:- Disadvantages of Partnership

JOINT STOCK COMPANY

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10. Accountability 10Diffused risk 9. Excessive government regulations.

Features of co-operative society Advantages of co-operative Disadvantages of co-operative

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1. Incredible Financial projections

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11.Explain any seven causes of Industrial sickness?

Causes for industrial sickness:

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V SEMESTER BBA EXAMINATION NOV/DEC2018

I.SECTION A Answer any five 5X2=10

g. Mention any two objectives of SIDBI.

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Section –B any three 3X6=18

3.Explain any six characteristics of SSI

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Section-C any three 3X14=42

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V SEMESTER BBA EXAMINATION NOV/DEC 2017

II. Section B Answer any 3 questions . Each questions carries 6 Marks. 3 X 6 = 18

Status An entrepreneur is the owner of A manager is the servant in the

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Rewards The reward an entrepreneur gets A manager gets salary as reward

3.State the basic objective of SSI’s

4.Explain the financial aspects of Business plan?

ii) Working capital:

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iv) Cash flow statement: