PART A
This part contains 5 questions carrying 1 mark each. Answers to these questions should be from one word to one sentence
1 Distinguish between 'Sales Tax' and 'Excise Duty'.
2 What is meant by „Employment‟?
3 Give the meaning of 'Legal Environment.'
OR
What is trend spotting?
4 What is Innovation?
5 Rahul wants to start an amusement park near Vishakhapattanam. This will require an investment of ₹.50 lakhs. Name the financial institution which Rahul should approach for financing this venture.
OR
Patamadai, a small town resides along the banks of the Tamaraparani river, 20Kms away from Tirunelveli in Tamilnadu. This place is world famous for its silken mats woven from grass. The majority of mats made in here have cotton warps and korai wefts. The process of mat weaving is time consuming and painstaking. This handicraft industry has gone through a cycle of transition from being most coveted to the most ignored. Producers had changed the method of production but off late many of them are reverting back to traditional methods of dyeing and processing the korai grass. Mass production now requires more finance. Which financial institution these producers should approach for help?
PART B
This part contains 5 questions carrying 2 marks each. Answers to these questions should be in 50 to 75 words.
6 It is a process that can allow an organization to concentrate its resources on the optimal
opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.
Identify the concept and mention the components of the identified concept.
7 Give the meaning of 'Routing' and 'Scheduling' as elements of operational plan.
OR
A summary of the projected assets, liabilities and net worth of the entrepreneur is depicted through a proforma that helps entrepreneur to reflect the position of the business at the end of its first year. Identify the term referred here. To which component of Business Plan the Term belongs to?
8 Mention any two importance of Business Plan.
9 With its help the consumers are able to identify the products of a firm and are also able to differentiate them from those of the competitors. Identify the concept and state its components.
OR
“It is the mixture of controllable variables that the firm uses to pursue the sought level of sales in the market”. Identify the concept and mention the components
10 A business enterprise which works with the principle of each for all and all for each.Name the form of enterprise and mention any two features.
PART C
This part contains 7 questions carrying 3 marks each. Answers to these questions should be in about 100 words.
11 What is meant by "Problem Identification"? State it‟s any four uses.
12 Deepak and Gaurav joined the prestigious law university in Ahmadabad in the year 2017. During the course of study they became good friends and they both realized that their common interest lies in the field of corporate law. After completion of their degree they decided to start a firm of corporate of their own, namely „Legality‟ wherein both of them will be co-owners dividing the profit and loss. After a year of service, they realised that there are certain rights which are denied to their firm as it‟s not registered.
Identify the form of organization structure in the case and mention any two consequences of non – registration of a firm.
OR
An entrepreneur who is interested to operate his or her enterprise as an HUF is required to comply with various requirements. Explain any three such requirements.
13 State the advantages of 'Good Negotiations'.
14 'For the smooth and orderly functioning of corporate sector in a free market economy, stock exchanges are indispensable because of different roles played by them for different groups.' Explain the importance of stock exchange to investors in the light of this statement.
15 'The Fancy Store' a readymade garments retail shop sold 8,000 shirts at ₹.400 per shirt during the year ended 31st March, 2014. Cost of placing an order and receiving goods is ₹ 2,000 per order. Inventory holding cost is ₹ 500 per year.Calculate the 'Economic Order Quantity' for 'The Fancy Store'.
OR
The raja and Company has the following items in its Balance Sheet: stock -50,000 ; trade creditors -30,000; debtors -70,000; cash -100,000; dividend payable-45,000;short term loans-60,000; short term investments-75,000; tax45,000. Calculate gross and net working capital.
16 Naveen after completing his M. Tech in Nano Technology wanted to start his own business. He thought to manufacture sophisticated instruments used in surgery. He knew that his knowledge of Nano Technology will help him in manufacturing these instruments. According to him such instruments will help the surgeons to operate upon the patients with accuracy, with minimum blood loss and quick post operation recovery. Such types of instruments are used in advanced countries only and there was a risk in marketing the same. The cost price of machinery required for manufacturing such instruments was very high and more research was required in this field of Nano Technology. For seed funding, Naveen approached 'Himani Capital Ltd.', who finance such types of projects. 'Himani Capitals Ltd.' after analysing the proposal agreed to provide seed capital
to Naveen. Explain the different stages of 'Early stage financing' to seek venture capital finance after the one discussed above.
OR
Going public is a complex decision that requires careful consideration and planning. Entrepreneurs should examine their current and future capital needs, and be aware of how an IPO will affect the availability of future financing. What are the drawbacks to an entrepreneur in going public?
17 'Pure Neer India Ltd.' is the manufacturers of water purifiers. The company has developed a new water purifier that not only converts the hard water into soft water but also kills the bacteria and other harmful micro organisms present in it. The company has named this water purifier as 'Nirmal Neer' and for its marketing, appointed 500 salesmen throughout the country. The company also trained the salesmen to provide information about the usefulness of the 'Nirmal Neer' water purifiers to the customers and motivate them to buy the same.
(a) Name and explain the 'type of promotion strategy' adopted by the company.
(b) Also identify the channel of distribution used by the company.
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