1 Distinguish between 'Sales Tax' and 'Excise Duty'.
ANS:Sales tax is levied on the sale of the commodity which is sold for the first time. Excise duty is a tax on manufacture/ production or import of goods. Note: 1 mark for correct difference
2 What is meant by ‘Employment’?
ANS: Activity in which an individual works regularly for others and gets remuneration in return
3 Give the meaning of 'Legal Environment.'
ANS: It covers all such areas such as taxation, employment, law monopoly, legislation and environmental protection laws.
4 'It is the process of entrepreneurship which involves the translation of a useful idea into an application which has commercial value.' Identify the process.
Ans: 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.
ANS: Tourism Finance Corporation of India (TFCI)
6 State any two points of importance of 'Goal Setting'. Write any two points:
ANS:
1. It is an important exercise for ensuring the appropriate performance
2. It ensures clarity of vision and alignment to the organisational goals.
3. It allows us to be proactive instead of being reactive
7 Give the meaning of 'Routing' and 'Scheduling' as elements of operational plan.
ANS:Routing is a process concerned with determining exact route or path a product/ service has to follow right from raw material till its transformation into finished product. Scheduling means fixation of time, date, day when each operation is to be commenced and completed.
8 Gaurav started a factory for manufacturing bags for the students of nursery and primary classes. He invested ₹.2, 00,000 of his own and obtained a loan of ₹10, 00,000 from bank. He made the instruction plan describing the details that were needed for the operation of machines by the workers.
Identify and explain the format of 'business plan' described in the above para
a. Internal Operational plan
b. A detailed plan describing planning details that are required by management but may not be of interest to external stakeholders
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.
ANS: (a) Brand.
(b) It has the following components --brand name; brand mark; trade mark.
10 Name and define the form of business organization in which the liability of its members i limited. State one more feature of this form of business organization.
ANS:
(a) Joint stock company.
(b) It is an association of persons who contribute money in the shape of shares and the company gets a legal entity and enjoys a permanent existence.
(c) It has the following features: (Any one) voluntary association; artificial person; separate legal entity; common seal; limited liability; transferability of shares; diffusion of ownership and management; number of members; limitation of action; winding up.
11 What is meant by "Problem Identification"? State it’s any four uses and also give an example.
ANS:
a) A problem is a roadblock in a situation, something that sets up a conflict and forces you to find a solution .
(b) It has the following uses:
(Any four) Bring out new products in the market; understand the problems and needs of the market; be creative; increase employment generation; increase national income
(c) Example: ready to eat foods for the younger career oriented generation (or any other suitable example)
12 After passing his 12th class with entrepreneurship as an elective subject 'Guru' started his own business. He invested ₹2, 00,000 as capital which was given to him by his father. He obtained a loan of ₹ 1, 00,000 from his elder brother Ravi, who was working as an assistant manager in Bank of Baroda. In the first year he incurred a loss of ₹.50, 000 and had to pay to his suppliers their outstanding bills. This created a financial problem for him and he had to take a loan of ₹ 1, 00,000 from the Bank of Baroda on the personal guarantee of his brother, He started doing hard work, lowered the prices and informed his customers about the qualities of goods sold by him. Because of this the sales increased four times and he earned a net profit of ₹ 75,000 in the second year.
(a) Identify the form of business organization started by "Guru".
(b) State any five features of such a form of business organisation.
ANS:
(a) Sole proprietorship
(b) The following are the features for sole proprietorship: (Any five features in statement for m)
a. individual ownership
b. individual management and control
c. individual financing
d. no separate legal entity
e. unlimited liability; sole beneficiary
f. easy formation and closure
g. limited area of operation
13 State the advantages of 'Good Negotiations'.
ANS:
1. Helps in building better relationships
2. Delivers lasting, quality solutions- rather than poor short-term solutions that do not satisfy the needs of either par ty
3. Helps in avoiding future problems and conflicts
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.
ANS: Importance of stock exchange to investors : (any three points)
1. Dissemination of useful Information. Stock exchange publishes useful information regarding price lists, quotations, etc., of securities through newspapers and journals. The interested persons buy and sell their securities on the basis of information provided by the stock exchanges.
2. Ready Market: Persons desirous of converting their shares in to cash may easily do so through a member of stock exchange.
3. Investors' Interests Protected: Stock exchanges formulate rules and regulations so that members may not exploit the investors.
4. Genuine Guidance about the Securities Listed: The investors can safely depend upon the information provided by the stock exchanges.
5. Barriers of Distance Removed: Stock exchange removes the barriers of distance in regard to securities listed there. Without stock exchange the securities of a Delhi company may have a limited market in Delhi only.
6. Knowledge of Profit or loss on Investments: The investors can estimate the profit or loss on the total amount of investments in securities, by comparing the original amount invested and the price of securities on a particular day.
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