CBSE Class 12 Entrepreneurship Resource Mobilization Worksheet Set A Solved

Read and download free pdf of CBSE Class 12 Entrepreneurship Resource Mobilization Worksheet Set A Solved. Download printable Entrepreneurship Class 12 Worksheets in pdf format, CBSE Class 12 Entrepreneurship Resource Mobilization Worksheet has been prepared as per the latest syllabus and exam pattern issued by CBSE, NCERT and KVS. Also download free pdf Entrepreneurship Class 12 Assignments and practice them daily to get better marks in tests and exams for Class 12. Free chapter wise worksheets with answers have been designed by Class 12 teachers as per latest examination pattern

Resource Mobilization Entrepreneurship Worksheet for Class 12

Class 12 Entrepreneurship students should refer to the following printable worksheet in Pdf in Class 12. This test paper with questions and solutions for Class 12 Entrepreneurship will be very useful for tests and exams and help you to score better marks

Class 12 Entrepreneurship Resource Mobilization Worksheet Pdf

 RESOURCE MOBILIZATION CHAPTER
 
QUESTION BANK
 
"Education is the manifestation of the perfection already in man." – Swami Vivekanand Why does an entrepreneur need to plan the financial resource requirement for running an enterprise?
To minimize losses, it is essential to prepare for the "unexpected" by arranging and protecting the resources. The significance of finance in enterprise is explained like a lubricant to the process of production. It's one of the most important requirement to start an enterprise. Finance is important as it assists in the formation of new businesses, and allows businesses to take advantage of opportunities to grow and expand. Right from the very beginning i.e. conceiving an idea; finance is required to:
 
a) Promote or establish the business
b) Acquire fixed assets
c) Make market investigations
d) Develop product
e) Keep men and machines at work
f) Encourage management to make progress and create value.
g) Expand, diversify, improve and grow.
h) Be enough to meet unexpected/unplanned business expenses.
 
'Production', 'Marketing', and Financing', deemed as the most important factors and before doing anything, an entrepreneur should clearly answer the following three questions:
 
1) How much money is required?
2) Where will money come from?
3) When does the money need to be available?
 
As regards, the money needed, it can be estimated by developing a statement of various assets required by the enterprise. Integral to total amount needed is to decide about its arrangement or sources.
 
What are the different sources of finance?
 
Financial sources could broadly be classified into 2 major categories.
1) Internal sources
2) External sources
 
These sources carry very different:
 
• Obligations
• Responsibilities
• Opportunities
 
Internal sources referred to as owner's own money is also known as 'equity'. A large portion of money is arranged from the external sources. Nowadays a common growing practice is where the entrepreneur gives up part of his/her ownership in the enterprise and in return receive money to develop business.
Some mushrooming sources available to an entrepreneur to raise finance:
a) Capital markets
b) Angel investors
c) Venture capital
d) Specialized financial institutions
 
What are Capital markets?
 
A capital market may be defined as an organized mechanism meant for effective and smooth transfer of money capital or financial resources from the investors to the entrepreneurs. Here, productive capital is
raised and made available for industrial purposes. Capital Markets play a very vital role of a financial
intermediary.
 
Why are capital markets considered as an important source of raising finance?
Capital markets are the most important source of raising finance for the entrepreneurs as this market can:
a) Mobilize the financial resources on a nation-wide scale.
b) Secure the required foreign capital and know-how to promote economic growth at a faster rate.
c) Ensure the most effective allocation of the mobilized financial resources by directing the same either to such projects which are capable of the highest yield or to the underdeveloped priority areas where there is an urgent need to promote balanced and diversified industrialization.

Define Primary capital market. How does it mobilize finance requirements for entrepreneurs?
Primary market (new issues market) is basically to facilitate transfer of resources from the savers to the entrepreneurs seeking funds for:
 
a) Setting new enterprises
b) Expanding
c) Diversifying
 
The 'new issues' may be issued by:
1) New companies – also called initial issues.
2) Old companies – also called further issues.
 
Initial issues
 
The entrepreneurs highly bank on this type of "issue" to generate funds. When for the first time, entrepreneur for the purpose of obtaining capital funds decides to issue securities to the public — its first sale is in the primary market. Such ―issues of securities" are even referred as "new money issues".
 
Methods of flotation of new issues
 
An entrepreneur can raise the required capital in the primary market by the following methods:
1. Public issue
2. Rights issue
3. Private placement
4. Offer to the employees
 
How is finance mobilized with the issue of initial public issue? What are the benefits and drawbacks of public issue to an enterprise?
 
This involves raising of funds directly from the public through the issue of prospectus. An enterprise organizing itself as a public limited company can raise the required funds commonly by preparing a prospectus.
 
When an entrepreneur offers shares to the public for subscription he/she is required to comply with all the restrictions and formalities pertaining to the initial issues, prospectus drafting and launch.
When an entrepreneur decides to go public and become a public company, he/she tends to be in advantageous positions because of reaping the following benefits:
 
1) Access to capital: The primary advantage an entrepreneur stands to gain by going public is access to capital. In addition, the capital does not have to be repaid and does not involve an interest charge. The only reward the IPO investors seek is an appreciation of their investment and possibly dividends.Entrepreneur can use the capital raised for a variety of purposes including:
 
(1) Growth and expansion,
(2) Retiring existing debt,
(3) Corporate marketing and development
(4) Acquisition capital.
An entrepreneur's financing alternatives stands greatly increased.
 
2) Other advantages
 
• Mergers and acquisitions: Public stock of a company can be used for businesses to grow through acquisitions.
 
Higher valuations: Public companies are typically valued more than private companies.
 
Benchmark trading price: The trading price of a public company's stock serves as a benchmark of the offer price of other securities.
 
Capital formation: Raising capital later is typically easier because of the extra liquidity for the investors.
 
Incentives: Stock options and stock incentives can be very helpful in attracting employees.
 
Reduced business requirements: While an underwritten initial public offering requires significant earnings, the lack of earnings does not keep a private company from going public.
 
Less dilution: There is less dilution of ownership control compared to an IPO.
 
Liquidity: A public company provides liquidity for management, minority shareholders, and investors.
 
Prestige: Added prestige and visibility with customers, suppliers, as well as the financial community.


Please click on below link to download CBSE Class 12 Entrepreneurship Resource Mobilization Worksheet Set A Solved

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Resource Mobilization CBSE Class 12 Entrepreneurship Worksheet

The above practice worksheet for Resource Mobilization has been designed as per the current syllabus for Class 12 Entrepreneurship released by CBSE. Students studying in Class 12 can easily download in Pdf format and practice the questions and answers given in the above practice worksheet for Class 12 Entrepreneurship on a daily basis. All the latest practice worksheets with solutions have been developed for Entrepreneurship by referring to the most important and regularly asked topics that the students should learn and practice to get better scores in their examinations. Studiestoday is the best portal for Printable Worksheets for Class 12 Entrepreneurship students to get all the latest study material free of cost. Teachers of studiestoday have referred to the NCERT book for Class 12 Entrepreneurship to develop the Entrepreneurship Class 12 worksheet. After solving the questions given in the practice sheet which have been developed as per the latest course books also refer to the NCERT solutions for Class 12 Entrepreneurship designed by our teachers. After solving these you should also refer to Class 12 Entrepreneurship MCQ Test for the same chapter. We have also provided a lot of other Worksheets for Class 12 Entrepreneurship which you can use to further make yourself better in Entrepreneurship.

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