CBSE Class 11 Entrepreneurship Business Finance And Arithmetic Worksheet

BUSINESS FINANCE AND ARITHMETIC

I Answer each of these questions in about fifteen words

1 What do you mean by Unit of Sale?
2 What do you mean by Gross Profit?
3 Name the type of tax which can be included as a cost element in computation.
4 Why maintaining cash book or register is very essential for every business?

II Answer each of these questions in about fifty words

1 Distinguish between fixed cost and variable cost. Give examples.
2 What do you mean by Start- up cost? Identify the areas for requirement of startup cost.
3 What do you mean by Cash Inflow and Cash Outflow?
4 ‘Profit is not to be considered as Inflow’. Comment with apt reason.

III Answer each of these questions in about one seventy five words

1 Give one difference between Direct Tax and Indirect tax.
2 Why motive of Business is to learn profit and not Loss?
3 Give one different between Cash flow and Income statement.
4 What do you mean by Non-Cash Expenses?
5 Distinguish between cost and expenses.

IV Answer each of these questions in about two hundred and fifty words:

1 What do you mean by Break Even Point?
2 How much profit can we earn? Is there any policy of the Government for Maximum Profit earning?
3 Identify the following items as inflow/outflow. Also give reason for your choice.
(a) raw material
(b) Depreciation
(c) Machinery purchased
(d) Loan from bank
(e) Equity shares issued
(f) Excise duty paid
(g) Profit on sale of asset
(h) interest received on investments.

V Answer the following in about 250 words: 

1 Explain why break-even analysis is of reduced value to a multi-product firm? Analyze the factors that any business should take into consideration before using break-even analysis as a basis for decision making.
2 Find our Break Even Point from the following information:
(a) Fixed cost = Rs.40,000
(b) Variable cost =Rs.2 per unit
(c) Selling price =Rs.4 per unit

3 The following information relates to a company, which produces Plastic Bottles.
Direct Labour per unit Rs.10
Direct Material per unit Rs.25
Variable overheads per unit Rs.5
Fixed costs Rs.30,000
Selling price per unit Rs.100

Calculate:
(i) Variable cost per unit
(ii) The minimum number of units that must be sold for the company to break even
(iii) Show break even in terms of rupees.