Question 1

In which business organisation, there is a separation of ownership and management?

Accepted Answer

Company form of business

Question 2

AB Ltd. was into manufacturing security cameras for household and commercial buildings. Their Research and Development team came up with a new idea of manufacturing drones as security cameras which will give a 360-degree view of the entire building. They needed huge finance for the same. The company MD Sharath heard of this group of venture capitalists who are ready to invest in new ideas. He seeked an appointment with them and started preparation of a business plan to be presented before them. His plan was to make an informative PowerPoint presentation showing key graphs of financial trends. It was meant to trigger discussion among the members. Which format of business plan is Sharath using?

Accepted Answer

A pitch deck with oral narrative

Question 3

Vinita, Bhavana, Rani and Nandini are all good friends in the age group of 15-17 years of age. All of them decided together to start a business venture of making soaps at home using natural ingredients. They decided to name their venture as 'O & HM' meaning Organic and Home Made. They spoke about their venture to their parents and asked them if their business could be registered so that it will be easy to divide the profits. Vinita suggested that they should register it as a partnership firm. Can they form a partnership firm?

Accepted Answer

No, they cannot form a partnership firm since all of them are minors.

Question 4

Karan has learnt the art of zardozi work from his grandfather and father. He opened a designer boutique exclusively for bridal wear all by himself. He introduced new designs in his work which is highly appreciated by everyone. What form of business organization is operated by him?

Accepted Answer

Sole proprietorship

Question 5

Match the following characteristics of a joint stock company as given in Column I with the meaning as given in Column II:

| Column I | Column II | | --- | --- | | Artificial Person | It has an independent status separate from its members | | Separate legal entity | The liability of the shareholders is limited to the extent of the amount of shares held | | Limited Liability | It can be terminated as per the Companies Act | | Winding up | It is treated by law and has a distinct personality of its own |

Accepted Answer

A-iv, B-i, C-ii, D-iii

Entrepreneurial Planning

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