Question 1

From the given Franchise in Column I and related meaning in Column II, identify the matching pair. Column I: 1 Franchisor, 2 Franchisee, 3 Franchise, 4 Royalty. Column II: A The individual or firm purchasing the rights, B Periodic payment made to the franchisor, C The owner who grants rights to another party, D Standard Operating Procedure.

Accepted Answer

(B) 1-C, 2-A, 3-D, 4-B

Question 2

Assertion (A): Horizontal expansion means adding new units at the diversified stage of production. Reason (R): A bakery starting a chain of similar bakeries in other towns is an example of horizontal expansion.

Accepted Answer

(D) Assertion(A) is false but Reason (R) is true

Question 3

Rohan embarked on an entrepreneurial venture by establishing a gym called Fit Zone. He equipped the facility with a diverse range of machines and enlisted qualified trainers to assist customers in their workouts. Initially, he set a nominal hourly fee to make the gym accessible to individuals from economically disadvantaged backgrounds. The gym quickly gained popularity, prompting Rohan to operate in multiple shifts and hire additional trainers. He also expanded the facility by installing extra machines to accommodate a larger customer base. Identify the type of business expansion undertaken by Rohan.

Accepted Answer

(A) Internal expansion

Question 4

From the given enterprise in Column I and related glossary in Column II, identify the matching pair. Column I: 1 Vodafone and Idea, 2 Walt Disney and American Broadcasting company, 3 Facebook and Instagram, 4 L&T and Mind Tree. Column II: A Conglomerate Merger, B Hostile Acquisition, C Friendly acquisition, D Horizontal Merger.

Accepted Answer

(D) 1-D, 2-A, 3-C, 4-D

Question 5

A textile manufacturing company named Fab Weave Ltd and a cotton producing company named Pure Cotton Ltd decided to merge together to maintain steady production and supply chain.

Accepted Answer

(A) Vertical merger

Enterprise Growth Strategies

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