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COMMON PRE-BOARD EXAMINATION 2022-23

Subject: ENTREPRENEURSHIP (066)

OIRECTIORS

Time Allowed: 3 Hours Marks: 70

General Instructions:

1.The question paper contains 4 sections A, B, C andD

1.1. Section A contains Multiple choice questions
1.2. Section B 2 marks
1.3. Section C 3 marks
1.4. Section D 5 marks
2. Internal choice is given in the paper, there is no overall choice.

Q. No SECTIONA
Marks

1. Which one of the following is not an element of business opportunity?

(A)Practicability of the idea
(B)Assured market scope
(C)Increase employment generation
investment
(D)An attractive and acceptable rate of return on

Srinath & Bros started manufacturing multilayer face-mask and face-|

shield which has a great demand in this time of COVID 19 for domestic
use and also otherwise it is an item in great demand in urban areas
having high level of pollution. Srinath's brother advised him to fix the
price initially at a lower rate to attract new customers. The price will be
raised later once this market share is gained.
Identify the pricing technique suggested by Srinath's brother.
(A)Cost-plus pricing
(B)Penetration pricing
(C)Price skimming
(D)Variable price method

GD Electronics sold a Bluetooth head-set for 75,000. The cost price of

the item for GD Electronics is 80% of its selling price. What is the profit
earned by GD Electronics?
(A) 7 1,000
(B) 4,000
(C) F 9,000
(D) F 2,000

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ing unit 1
manufacturing
small
their
4. Comfort Car Accessories has set up
producing9 leather items like seat covers, steerin leaders
market
In uxury car

company, Kizushu,
Es An automobile Car Accesso over
manuracturing planned to join with Comfort and control
better pricing
alow Kizushu to obtain
e d will business.
the manufacturing process. the two
between
of merger that took place
Oentiry
this
type
(A)Horizontal merger
(B)Market extension mergers
(C)Product extension mergers
(D)Vertical merger
new venture electronic cycies
a business plan for his a who is
5.
Arsnaip is preparing operated with guidance from
his uncle
Which Will
be battery
is presently not keeping
well and
engineer. But his uncle
mechanical to put the information
does not know under which heading
hence Arshdip & Equipment ana
communication, Machinery
regarding9 Transport & a lawyer
He approaches his elder
brother, Arunark,
Production Process.
and helps to prepare the plan.
for help. Arunark guides him which the above
itemms
of Business Plan, under
Identiry the component
to be mentioned.
(A) Operational Plan.
(B) Organisational Plan
(C) Financial Plan.
Venture.
(D) Description of
1
manufacturing biodegradable bags
Manoj planning to set up unit forsugarcane bagasse. He performs all
a
5. is

of different sizes by processing the

has full control over distribution. He
the marketing activities himself and
sells to consumers through his
The channel
own retail stores. of
distribution used by Manoj is:
(A) Zero level
(B) One level
(C) Two level
(D) Three level

home and office furniture 1

has been manufacturing and selling
since Ltd.,
. AKIA
2007. Their market share in this field is 55%. They decided to
assembled by the customer
introduce new furniture which can be easily
dismantle and carry in case of house
at their place and is also to easy to
shifting in 2020. For the same they estimated their financial
requirements to be F40 crore. AKIA Ltd. decided to raise the same

through a limited number of sophisticated investor.

Identify the methods of flotation of new issue.
(A) Public issue
(B) Private placement
(C) Offer to employees
(D) Right issue_
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8. Seema, after graduating from IIM. Wanted to become an entrepreneur
She identified and analysed the market need, market size and
Almond Milk.
Competition and realized that there is untapped demand for
cho0se
She started supplying Almond Milk in different flavours and
distinct for each of her offering based on flavour.
names
Seema.
Identify the type of brand name being practiced by
(A) Individual Brand name
(B) Family brand name

(C) Corporate names

(D) Alpha-numeric names
unit is
fans. The selling price per
Polar Ltd. sells ceiling fans and exhaust F200 and 160
variable cost per unit is
500 and F400 respectively. The
fans and 6,000 exhaust
The company sells 10,000 ceiling
respectively. contribution margin will be:
tans per year. The total
(A) 30,00,000
(B) 714,40,000
(C) 44,40,000
(D) T5,56,000

A company which is suffering huge losses can be shut |1

10. Assertion (A): laid down in Companies Act.
down only by following the procedures well as liquidated only by law.
A can be born as
Reason (R): company
Choose the correct option:
(A) A is true but R is false of A
R is not the correct explanation
(B) Both A and R are true, but A
R is the correct explanation of
(C) Both A and R are true and
(D) Both A and R are false.

have people that have money that they don't want to spend 1
11 |At times,
rather save for the future
use. On the other hand.
There are people who
activities but don't
some economic
money to undertake
want to spend amount of finance. Thus, the role of transferring
have the required units is called as
financial resources from the surplus units to the deficit

()- organized mechanism

(ii)_ may be defined as an
financial
transfer of money capital or
meant for effective and smooth
resources from the investors
to the entrepreneurs.

(A)(i)seed capital (ii) capital market

(B)(i)floatation (ii) commodity market
financial Intermediation
(C)capital market (i)
(D))financial Intermediation capital market
(ii)
furniture in 1
12. Gauri her business of manufacturing designer
started
Her business was a huge s u c c e s s and
she thought of selling
Lonavala. Pune. Gauri grants a
store owner
well as in
her product in Mumbai as
furniture and allows him to use tnEI
Harish the authority to distribute the ***************

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name and trademark owned by the her. Harish must pay a fee or
purchase a minimum inventory of stock in return for these rights.
Identify the type of franchise discussed above.
(A)Manufacturing franchise opportunity
(B)Product franchise business opportunity
(C)Business format franchise opportunity
(D)Business franchise opportunity ventures

13. Assertion(A): Money needed to fund the normal, day to day operations1
of a business is known as the Working Capital.
Reason(R): The cash conversion cycle (CCC or Operating Cycle) is the
length of time between a firm's purchase of inventory and the receipt
of cash from accounts receivable. It represents the number of days a
firm's cash remains tied up within the operations of the business.
Choose the correct option:
(A)Both Assertion and Reason are correct.
(B)Both Assertion and Reason are incorrect.
(C)Assertion is correct, but Reason is incorrect.
(D)Assertion is incorrect, but Reason is correct.

14. Which of the following is not a disadvantage of sole proprietorship form1

of business organization?
(A)Limited Capital
(B)Quick decision making
(C)Limited managerial ability
(C)Limited continuity
15. Which of the following is not an economic environment factor?
in the
(A)Increase in oil price because of increase in crude oil price
international market.
(B)Increase in unemployment.
(C)Increase in pollution because of use of old machinery.
in interest rate by the banks.
(D)Increase
Read the following article and answer the from question 16 to 18.
Source: https://www.forbesindia.com/
In December 2010, when IIT graduates Bhavish Aggarwal and Ankit
Bhati launched a bare-bones ride-hailing venture, they had few options
to finance it aside fre pockets and backing from immediate
theirown
family. In 2011, Rehan Yar Khan and Anupam Mittal came acrosS an
investment opportunity: An online marketplace for cabs and
interesting"
car rental services. To them, the model made perfect sense in India
where commuters are constantly seeking convenient travel options.
Khan and Mittal together invested nearly Rs 1 crore in the venture. TheyY
invested on blind faith, trusting Ola's founders' vision.
Bhavish Aggarwal and Ankit Bhatti also prepared business plan for the
that will be needed by the management for registering the monitoring

thevehicles and also the financial dealings.

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16. Rehan Yar Khan and Anupam Mittal are

(A)Venture Capital
(B)Money Lenders
(C)Financial Institutions
(D)Angel Investors
17. Which one of the following is not a feature of the answer as identified
in Q.16.
(A)Most of them are current or retired executives, business owners or
high net worth individuals who have the knowledge, expertise, and
funds that help start-ups.
BThey are common second round of financing for high-growth start-
ups.
(C)They invest in low-risk and low-return matrix usually in exchange
for convertible debt or ownership equity.
(D)Apart from investing funds, they provide proactive advice, guidance,
industry connections and mentoring start-ups in its early days.

18. Which format of business plan is used by Bhavish Aggarwal and Ankit
Bhatti for the management?
(A)Elevator pitch.
(B)A pitch deck with oral narrative.
(C)A written presentation for external stakeholders.
(DJAn internal operational plan.

SECTIONB

19. Swami wants to start a new business. Before deciding the type of 2
business, he started identifying the new trends in retail business. He
became a member of a trade association. He attended its events both
online and offline. He also took advantage of the social networking tools.
(i)Which way of trend spotting is used by Swami?
(i)Define a way of trend spotting other than identified in (i) above.

20. State two situations where a company form of business will be suitable. 2
OR
State any two characteristics of company form of business.

21. Hamhung Itd. decided to manufacture mobile phones with a new feature.
Itwill have an inbuilt button which when pressed will extend into a selfie
stick enabling the customers to click selfies easily without the need to
carry a separate selfie stick.

dentify two PESTEL factors which enabled

thisnew feature._
Hamhung Ltd., to bring out

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OR
Sohan started small business of
a
and named it Desi manufacturing and marketing pickles
Achar. He supplied the
now he wants to pickle in the whole city and
expand
into those conditions
in other cities. His father
suggested him to look
and forces which are external to a business
findstrategies to capitalize on the and
necessary to take timely action opportunities at the earliest. It
is
to deal with threats and
opportunities for the purpose of avail
firm. improvement in the performance of the
State two
importance of business environment
highlighted in the above
case.

22. Samar started Super Specialty Store, 'Samapada'. It's

a

hand-picked suppliers. These products areproducts are

Sourced from 2

Sampada's own brand. Its promotion strategy is sold under

focuses on targeted groups of customers. very specific and
The purpose of this promotions
strategy to develop the brand 'Sampada' by creating awareness
is
the customers. To do among
this, Sampada's Facebook and Twitter pages
encourage two-way communication with
channels provideplatform through which Sampada can interact with
a
customers. These social media
customers. It can then assess their
opinions about the brand.
Name and define the promotion mix used
by Samar to promote his store.
23. Anwar started
a packing
factory in the small plot of land inherited from 2
his father.Anwar is very enthusiastic and concerned
environmental issues and health has planned to sale food grade about
for packing edible oils and tetra pack for plastics
dairy industries. He contributed
T2,00,000 from his personal fund and obtained a loan of 73,00,000 from
the bank by mortgaging the land.
(i)Name the section of the financial plan that summarises the projected
SOurce of funds.
(ii)Why is it important for Anwar to ensure the selection of the best
overall mix of financing?

24. Planning and creating an effective sales strategy requires looking atlong-2
term sales goals and analyzing the business sales cycle, as well as
meeting with sales people about their personal career goals. Going9
DiTl through these exercises helps business owners and managers gain a
inou
more intimate knowledge of the sales intervals, seasonal changes and
what motivates the sales team. After creating the long-term sales
strategy based on long-term goals, sales managers should create
monthly and weekly sales strategies based on the long-term strategy.
Comment on two such strategies used by an entrepreneur.
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SECTI C

25. Explain the three components of a Brand.

OR
Write three differences between above the line (ATL) and below the ine
(BTL).
Ravi is in the process of developing the business plan of a shoes3
26.
of
manutacturing unit which he wants to start
in in an area industrial
Kanpur. He is in the process of developing a component of business plan
their number and
wherein he has to detail the kinds of people required,
the process of their selection.
here?
()Which component of business plan is being referred
that will affect the number
of people required
(1)State any two reasons

for various positions.

marketing plan for his business,
state the
(11)Ravi, is also preparing
a

first two steps involved in preparing such plan.

as a reason for Merger and acquisition.

27. Explain Synergy
OR
two forms.
Define: Merger. Explain its
walking stick that will help
Jatin started working on a 3
28. After graduation, blue-tooth and internet enabled. It
will be
blind people. The stick will be blind
with the phone. This will guide the
connected through an "App" started testing the
their walking path. He has
people about the objects in to be sold in the market.
stickto ensure that it has some value
(i)Jatinis at which stage of creative process?
to this stage.
(in)Discuss two stages just prior
3
29 (i)What is the primary advantage for a company/entrepreneur of public
issue of shares?
not get shares allotted when the offer
(ii)Mr. Kapoor, an investor culd
was made to the public. He wishes to invest in the company.
State the option available to for him to buy the shares and how will it
benefit Mr. Kapoor?

SECTIOND

30. Discuss the various sources which lead to emergence of basic ideas.
OR
Explain the various factors involved in assessing the market while
selecting a product or service?
in 5
31. Veer Singh wants to start dairy products business in his village
with his
Gurdaspur district of Punjab. One day he was discussing this
friend Surjit Singh. Surjit Singh told him that to start a business, first,
he should prepare a good business_plan so that he may not face any L
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to explain the
him
the future. Veer Singh requested
PrODiem in
importance of a business plan. might have
that Surjit Singh
any five points of importance
State
explained to Veer Singh.
Demand for the 5
Stores sells 4000 units of power banks annually.
32. Belkin
power bank is 400. Holding
cost
product iIs uniform. Purchase cost per
Ordering cost is
200 per order.
is 10% of the purchase cost.
per annum the Economic Ordering Quantity
for Belkin stores for the
(JCalculate
power banks.
Quantity (EOQ)
the assumptions of Economic Ordering
1 Mention
Model
Y and s
33 the following information related to sales mix of products X,
From
Z, calculate breakeven pointin units:
Particulars X_
Sale Price Per unit 30 42 372
Variable cost per unit F18 R14 19
Sales Mix percentage 60% 15% 25%

Total fixed cost is 72,46,500.

OR
Calculate the Return on Equity (ROE) for Surya International, for the
from the details given below :
year 2021-2022
Total Investments F10,00,000. The company obtained 12%Loan from
HCDF Bank Ltd 2,00,000 and also issued 10%Debentures 2,00,000.
Fixed expenses for the year are as follows:
Salary: F1,50,000
Rent: 750,000
Electricity & Utilities: 710,000
Depreciation: F40,000
Tax Rate: 50%
Annual Sales revenue: F10,00,000
Cost of goods sold: F4,00,000.

34. Ice n Roll is renowned name in naturally flavoured ice-creams made from 5
fresh fruits and edible vegetables. The company has its presence in
Maharashtra and Goa. Its ice-creams sell under the strong foothold in
Maharashtra but is struggling for success in the Goa market. The reason
is the presence of the local brand Flavours ice-creams which is selling
natural ice-creams with locally preferred flavours. Ice n Roll tried to
negotiate its way but because of the goodwill of the Flavours Ice-creams
Ltd., it could not succeed in its efforts. Frustrated Ice n Roll started
buying the shares of Flavours Ice-creams Ltd. to gain control over the
management.
(a) Identify and define the type of business expansion adopted by Ice n
Roll as its growth strategy in the Goa market.
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(b)Define the type of acquisition discussed above, quote the lines in

support of youranswer.
(c)Explain any two other types ofacquisition.