Sahodaya Pre-Board Examination Term II

Subject – Entrepreneurship – 066

SET A
Date: Max. Marks: 35
Subject: Time: 2 hours

General Instructions:
a. The paper is divided into 3 Sections
b. Section-wise overall choice is given to the students.
c. Section A (2 markers) has 6 questions. Attempt any 4 out of 6.
d. Section B (3 markers) has 5 questions. Attempt any 4 out of 5.
e. Section C (5 markers) has 4 questions. Attempt any 3 out of 4.

Q. No SECTION A M
1. ‘M D private limited company’ deals in dairy products. The company is planning to 2
expand its current production capacity by increasing the number of its livestock. Which
form of the expansion is company planning? Briefly explain any two core features of the
identified expansion.
2. The annual quantity of LED bulbs sold Axis Pvt. Ltd is 16000. The cost of placing an 2
order and receiving goods is Rs.1500/- per order. Inventory holding cost is Rs. 48/- per
annum. What is the Economic Order Quantity?
3. ‘A’ limited has decided to merge with ‘D’ limited to form ‘X’ limited. In this process of 2
merger, the companies have agreed upon an overall strategy and plan to discuss smaller
details in later negotiations. Which form of negotiation is the companies opting for?
Explain it.
4. What is the symbol usually called? Give any 2 purposes of such symbols. 2

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5. Differentiate between trade mark and brand mark. 2
6. The expansion of an enterprise may be in the form of internal expansion and external 2
expansion. Distinguish between these two forms.
SECTION B

7. Discuss in detail the ABC analysis of inventory control? 3

8. Max Limited is manufacturing pre mix for instant shakes and smoothies. By preparing an 3
income statement calculate the Return on Equity (ROE) and Return on investment (ROI)
from the following details
Equity share capital: Rs. 5, 00,000
Preference share capital: Rs. 2,00,000
10% Debentures: Rs. 5,00,000
Current liabilities: Rs. 1,00,000
Net profit after interest and before tax: Rs. 1,00,000
9. Explain with examples any three commonly used media options for promotional 3
strategies.
10. Explain any two advantages of franchising to the franchisee. Identify the type of 3
franchising stated in the following cases:
(i) The manufacturer grants the retailer or owner of the shop the authority to distribute the
goods and to use the name, trademark owned by the manufacturer.
(ii) When an organization gets the right to manufacture a product and sell it to the public
using franchisor’s name.
11. ‘Infismart Ltd.’ launched a smart watch in the market after extensive research and 3
development. This smartwatch had many new features which distinguished it from the
existing products in the market. To recover the investment a high price was determined

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 for the smart watch. Even then the demand was very high. Smartwatch users were ready
to pay the high price as they understood the product’s value and its features.
(i) Identify and explain the pricing strategy used.
(ii) State two advantages and two disadvantages of this pricing strategy.
SECTION C

12. The pandemic’s disruptions have transformed how Indians access diagnostic tests and 5
purchase medicines in the past year. Consumers have embraced online pharmacies,
preferring to order tests through apps rather than visiting diagnostic centers, making
companies such as Thyrocare reliant on the apps run by third parties to aggregate
customers. Online pharmacy PharmEasy’s parent will buy a 66.1% stake in diagnostic
chain Thyrocare Technologies for ₹4,546 crore, in a sign that Indians are increasingly
using mobile apps for their healthcare needs.
This is PharmEasy’s third acquisition after Ascent Health and Wellness and e-pharmacy
firm Medlife. The Thyrocare acquisition will further consolidate its position in the
market. The deal will lead to synergies for both companies, allowing them to accelerate
delivery of high-quality diagnostic and out-patient department services.
a. Explain the concept of synergy.
b. Discuss any three reasons for the acquisition in detail apart from synergy.
13. What is place mix? Explain the factors affecting choice of channels of distribution with 5
relation to product considerations.
14. What are capital markets? Explain the various methods of raising the funds in the primary 5
market by an entrepreneur.
15. Read the following passage from a Business Newspaper and answer the questions that 5
follow:
“Early-stage investments — angel and seed funding — into tech start-ups in India have
touched record levels in calendar year 2021 (CY2021) alongside a second funding boom
in the sector. In 2021, the profile of angel investors is changing.
Cash-rich start-up employees redeeming ESOPs, wealthy stock market traders, bankers,
lawyers, second-time founders, and even salaried employees from corporates are turning
angel investors to cash in on the start-up funding race.
These are signs indicating that India’s start-up ecosystem has established itself as an
alternative class of investment choice alongside existing traditional options such as bank
FDs, equity markets, mutual funds. In the ongoing calendar year alone around 442 angel

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funding deals were recorded in India’s start-up ecosystem, which is a 15% year-on-year
(y-o-y) increase compared with 382 deals in CY2021.”
Who are angel investors? Discuss any four features of angel investors.

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