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Aarav approached his mentor requesting Rs.10 Lakh to start his new venture, a mobile repair and service centre. Although his mentor could easily arrange the funds, he encouraged Aarav to apply for a bank loan instead, explaining that it would help him develop financial discipline and accountability. When Aarav met the bank officials, they asked him to present a detailed business proposal. Unsure of how to prepare one, Aarav began looking for someone who could guide him in drafting the business plan.
Who among the following can prepare the business plan? - Lawyers - Accountants - Marketing Consultants - Engineers
Options: 1. i and ii 2. i, ii and iii 3. ii and iii 4. i, ii, iii, iv
Business acumen and wealth seldom meet in one person. This desirable combination led to the emergence of _____ form of business.
Read the following statements: Assertion (A) and Reason (R). Choose the correct option given below.
Assertion (A): A company which is suffering huge losses can be shut down only by the procedures laid down in Companies Act.
Reason (R): A company can be born as well as liquidated only by law.
In which business organisation, there is a separation of ownership and management?
Riya joined Siddharth Pvt. Ltd., as a Construction Supervisor. To accomplish the business goals, she provides clear instructions and directions to her team regarding their tasks, and they effectively implement the preconceived production schedule. Identify the elements of one of the components of the business plan.
Marketing plan is a document:
Suresh and Ramesh are engaged in the wholesale business of pulses. They buy pulses directly from farmers in bulk and sell in small lots to the retailers. Both of them know their roles and responsibilities. They have also laid down the procedure for solving conflicts between them if any. All the above information is described in an important component of a business plan. The component is ____________ .
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?
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?
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?
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 |
If an entrepreneur pays special focus on one element of business plan that ensures the orderly flow of materials from raw material to finished product with a proper system of quality control and believes in 'work your plan', then identify the component of the business plan that the entrepreneur is following:
Name any two key aspects of financial decision-making.
______ feature of partnership states that any partner can act on behalf of the firm.
A financial plan is a projection of key financial data about the potential investment commitment needed for the new venture.
Marketing Plan is a document:
From the following, identify the form of business organisation that generally has a limited area of operation due to limited finance availability and limited managerial abilities:
From the following, which form of business organisation is best suited for owning and managing shopping malls?
Financial plan is a projection of key financial data about:
I. Economic feasibility of the enterprise. II. Orderly movement of goods. III. Market opportunities and threats. IV. The potential investment commitment needed for the new venture.
Choose the correct option from the following:
'Air-Puro Ltd.' is engaged in manufacturing and distribution of air-purifiers. The company has four departments - Production, Marketing, Finance and Human Resource. The quality of the air-purifiers is very good and these are handy also. Due to this the demand of air-purifiers started growing. To meet the growing demand, the Production Head informed the Chief Executive Officer to recruit more employees.
The component of Business Plan which will help in deciding the number of people required is:
Manoj, Ankit and Nikhil are good friends and doing interior designing business at a small-scale. Their business is taking off in a big way. Now there is a need to change their small-scale-business into a large-scale-business. The trio needs more capital to invest, to hire more employees and for other expenses. Due to the growing need they decided to re-organise their form of business. Now they wanted to have an organisation in which members have a limited liability and minimum paid-up capital is Rupees one lakh.
The type of organisation the trio wanted to form is:
Assertion (A): Minors cannot form a partnership firm.
Reason (R): Minors are incompetent to enter into a valid contract.
Assertion (A): Break-even point is that level of production where there is neither loss nor profit.
Reason (R): Break-even point helps in determining the product that are not contributing to meet fixed expenses.
Riya was fond of cooking and wanted to use her skills to establish a business of homemade pickles. Her business was established and it turned out to be very popular in and around her locality. Her husband was a manager in a bank and was transferred to another city. Riya had to go along with her husband, so she had to close down her flourishing pickle business. The form of business organisation operated by Riya was:
Which of the following statements is not true about a Private Company?
From the following, identify the form of business organization that generally has a limited area of operation due to limited finance availability and limited managerial abilities:
Break-Even Point is the level where:
Ashwin was working as Director Finance in Ambur Metal Works. Managing Director of the Company Kailash asked Ashwin to draft a proforma investment decision plan enlisting the funds which should be invested in different assets so that the company can get the highest possible returns. From the following identify the reason(s) that would help Ambur Metal Works.
- i. It will help the company to understand the total amount of funds required. - ii. It will also help the company to assess the situation as to whether they have excess or inadequate funds. - iii. It helps the company to understand the various sources of funds - iv. It helps the company to reflect the position of the business at the end of every year
"One-man control is best in the world if that man is big enough to manage everything." This statement holds true for __________ form of business organization.
Partnership form of organisation was developed due to the inherent limitations of sole proprietorship. One of them is limited capital, identify the other two?
__________ section of the business plan generally begins with the "mission statement" by the entrepreneur describing the size, scope and nature of the enterprise.
A Company is called an artificial person because _____.
Which of the following formats of business plan is not targeted towards the external stakeholder?
What is the minimum number of members required to start a public company?
A company generally affixes a ...in most of its documents.
(i) Each partner is liable for acts performed by other partners (ii) Each partner can bind other partners and the firm by his acts done in the ordinary course of business. Which feature of partnership is highlighted by these two statements?
As per law, a business and owner are one and same in case of sole proprietorship. What characteristic does this imply?
What is the minimum paid up capital required to start a private ltd Company?
__________ component of a financial plan helps to ascertain the highest possible returns on investment.
Amaze Ltd., is a company engaged in the manufacturing of air-conditioners. The company has four main departments Purchase, Marketing & Sales, Finance and Warehousing. As the demand for the product grew, the company decided to recruit more employees in the Finance department and Marketing & Sales departments. Identify the component of the business plan which will help the Human Resource Manager to decide and recruit the required number of persons for each department.
Bhawna, Maya, and Advik's interior design business was taking off in a big way. Their talent was in high demand. Now, the trio needed to hire more employees. Since the needs of their company were changing, they reviewed their personal circumstances, finances, and goals. They decided to legally organize their organization into one with a limited liability. Identify the type of organization the trio will form.
Match the following
| 1. Break Even Point | i. A summary of Projected assets and liabilities. | | 2. Proforma Income Statement | ii. Actual payments are received or made. | | 3. Cash Flow | iii. Total revenue is equal to total cost of a firm. | | 4. Proforma Balance Sheet | iv. Net profit calculated from projected revenue minus projected cost and expenses. |
Calculation of Breakeven Point is useful for the entrepreneur as it helps in assessing:
Match the following
| 1. Minor Partner | i. Partnership comes to an end. | | 2. Mutual Agency | ii. Personal property can be disposed in case of debt. | | 3. Unlimited Liability | iii. Cannot enter into contract. | | 4. Death of a Partner | iv. Business can be carried on by one or all partners. |
Amar and Akbar started a partnership firm to help the poor and needy. They collected money from various agencies and used it to benefit all those who are in dire need. Which characteristic are they violating?
Surya and his friend Chander are into developing sustainable products that are environment friendly and at the same time carrying value for the customers. They want to develop vegan leather by using Aloe vera. They met the officials from Venture Angles company that promotes young entrepreneurs. Hopeful of a positive response they submitted a detailed, well written, and pleasingly formatted plan.
Identify the format of business plan presentation used by Surya and his friend.
Prabhu first established Tanvi Foods in Coimbatore, as a partnership firm in early 2016 with his wife Brindha Vijaykumar and started with mango and apple juices. The business did well in the first year with a turnover of Rs 40 lakh, and since then its revenue has been growing. While the main concentrate of the drinks is made at the company's own 4,000 sq ft manufacturing unit in Coimbatore, the final product and bottling is done at third-party units (TPUs) in Coimbatore, Krishnagiri, Dharmapuri, Chennai, Puducherry, Mysuru, and Aurangabad. This has enabled them to scale up fast without needing much capital. What kind of manufacturing operation is followed in Tanvi Foods?
Hemant approached his father seeking Rs.5,00,000 for his new venture. He had planned to start a computer assembling unit. Though his father was in a position to give him the money he still insisted that he should take a loan from the bank which will make him more responsible. When Hemant approached the bankers, they asked for a business plan. Hemant was not sure as to who can help him in preparation of the business plan. Who among the following can prepare the business plan?
Varun along with his friends had a brilliant idea to manufacture an air conditioner which will also act as an air purifier. The idea was new and the market did not have such a successful product. For starting the unit, they were in need of huge funds, so they decided to approach Shankar, a successful businessman and who is also a venture capitalist. However, Shankar said that he was very busy and if they could pitch their idea within a span of 3 minutes, he was ready to hear it. Which format of Business plan will Varun and his friends would have to use?
Ramesh is working as a salesman in a company engaged in the marketing of readymade garments. He gets a monthly salary of ₹ 50,000 besides many other benefits. He is doing this work to earn his living and satisfy the materialistic and social requirements. He is not doing this work out of love, care and affection. Ramesh has undertaken __________ activity.
Monica and Monisha are working in an organisation that manufactures industrial machines. One day during the lunch time, they were discussing about the form of the organisation in which they were working. Monica described to Monisha the form of her organisation as one which has an independent status, different from its members. She added that her organisation cannot be held liable for the actions of its members. Monisha further added that the organisation is created by law and could be liquidated by law only. Monica and Monisha are discussing about __________ form of organisation.
A comprehensively written document prepared by an entrepreneur formally describing all the relevant external and internal elements, involved in starting a new venture is called __________.
All businesses guarantee for the return of either principal amount invested in the business or profit. True or False
Mutual agency as a characteristic of partnership states that each partner is liable for the acts performed by the other partners. True or False
The maximum number of members in a private company can be:
Samar is a budding rural entrepreneur who is working on improving the health index of the women in rural areas. Samar needs to understand various health issues confronted by women in order to create a socially committed organization. For this, he wants to gather information about the target market or customers in an organized manner. This organized effort of Samar is known as _______________.
_______________. feature of partnership states that any partner can act on behalf of the firm.
SWOT Analysis means to consider (a) Strengths (b) Weakness (c) Opportunities and (d) Tenure of Business. True or False
Marketing plan is a document:
Piyush and Ramesh are engaged in wholesale business of pulses. They buy pulses directly from farmers in bulk and sell in small lots to the retailers. Both of them know their roles and responsibilities. They have also laid down the procedure for solving conflicts between them, if any. All the above information is described in an important component of a business plan. The component is ____________.
Prabhav is a budding entrepreneur who is about to pitch in his idea to a group of investors. For presenting his business plan he has made a teaser of about three minutes to awaken the interest of the potential investors. Prabhav is using _________ format of presenting a business plan.
Proforma investment decisions relates to how the enterprise funds are required in different assets so that the enterprise is able to earn the highest possible returns on investment. True or False
State the liability of a partner?
Give the meaning of a 'Joint Hindu Family Business'.
List the two documents other than 'The Companies Act' on the basis of which the scope of a company is determined.
Distinguish between 'Partnership' and 'Joint Hindu Family Business' on the basis of maximum number of members.
Distinguish between 'Partnership' and 'Private limited Company' on the basis of maximum number of members.
What is meant by 'private sector enterprise'?
Give the meaning of 'Hindu Undivided Family'.
Differentiate between 'Excise Duty' and 'Customs Duty'.
Paranshu was working with Hitesh, a new entrepreneur, as a Production Manager. To achieve the objectives, he issues necessary orders and guidelines to his Subordinates pertaining to work and to give practical shape to the production plan. Identify and state the element being discussed above which is related to one of the components of a 'Business Plan'.
Define a 'Co-operative Organisation'.
Differentiate between 'Value-Added-Tax' and Sales tax.
Vishal was working with Abhinav, a new entrepreneur, as a production Manager. For Smooth and co-ordinated flow of work he had to pay attention towards various elements. To ensure predetermined quality of products he had to compare the performance with established standards. Identify and state the elements being discussed above which is related to one of the components of a 'Business Plan'.
Distinguish between 'sales tax' and 'excise duty'.
What is meant by 'Employment'?
List any two categories of persons that are required to obtain registration from 'Central Excise Department'.
Distinguish between 'Joint stock company' and a 'Joint Hindu Family' on the basis of liability of members.
Explain 'SWOT analysis' as step in preparing a marketing plan.
Why is a company called an 'artificial person'?
Sanjana graduated from National Institute of Fashion Studies and wants to start her own boutique. She wants to understand the feasibility and viability of the proposed venture. This will also facilitate her in assessing and making provisions for the bottlenecks in the progress and implementation of the idea. She also wants to know about the success of the project along with the risk factors involved.
Identify and give the meaning of the document which is required by Sanjana on the basis of the above para.
Mahesh, an entrepreneur is planning to enter into a new business of manufacturing laptop bags with an inbuilt lock facility. Being highly complex and tedious, its manufacturing operations need to be well planned. He decides that the complete bag will be manufactured at his own factory i.e. no part of its manufacturing process will be outsourced.
Identify the important component of business plan that is discussed above. Also, state what needs to be described in the above stated manufacturing situation.
(a) Give the meaning of 'Implied Authority' and 'Mutual Agency' as characteristics of a partnership form of business organisation.
(b) State any two characteristics of partnership which overcome the inherent limitations of sole proprietorship form of business organisation.
(a) Explain 'SWOT analysis' as a step in preparing a marketing plan.
(b) 'Preparing a good business plan can't guarantee success, but it can go a long way towards reducing the odds of failure.' Justify this statement by giving any two points.
(a) What is a 'Business Plan'? State any two points why 'Business Plans' are considered as decision-making tools.
Why is it important for an entrepreneur to do a break-even analysis? State any two points.
State any four parameters that suggest that an entrepreneur should choose company form of an organisation.
'An entrepreneur must pay adequate and proper attention to human resource planning as it helps in assessing the kind of people required'. Explain.
Explain 'identify the target market' as a step in preparing the marketing plan.
State any two characteristics of partnership form of business organization.
Why is a private company more desirable than a public company. Give any two reasons.
Enlist two points as to why a private company is more desirable than a public company.
Mohan Singh wants to start a dairy products business in his village in Gurdaspur district of Punjab. One day he was discussing this with his friend Makhan Singh. Makhan Singh told him that to start a business, first, he should prepare a good business plan so that he may not face any problem in the future. Mohan Singh requested him to explain the importance of a business plan. State any two points of importance that Makhan Singh might have explained to Mohan Singh.
Tony is carrying on a wholesale business of selling fruits and vegetables. His shop is in a local wholesale market. His turnover in the previous year was ₹ 6 lakh. As per rules, he has to quote a ten digit alphanumeric number in all his business transactions. This number enables linking all transactions of the 'person' with the department which issues this number. Identify the number and state any two 'persons' who must have this number.
Description of business venture is an important component of a business plan. Physical infrastructure is one of the key elements covered under this. State about (i) utilities, and (ii) production process as part of the physical infrastructure.
Sukrit is a green entrepreneur who has launched a new water conserving apparatus for urban houses by the name of 'JALASHAY'. This apparatus is a compact system to be installed on the roof of the houses to harvest rainwater. The uniqueness of the system is that it has an inbuilt water treatment mechanism that makes the water ready for use as soon as it is collected.
Sukrit has set up laboratories to test the water quality with the established standards. By doing so, he is paying specific attention to one of the important elements of the operational plan. Identify the element and explain one more element of this plan.
Vishnu started his factory for manufacturing plastic items in Daman. As per the advice of his manager, he appointed 'Bizmadeeasy' company to formulate a business plan for his manufacturing unit. The company in its business plan mentioned the cost of installing a water waste treatment plant within the premises of the manufacturing unit. Interpret any two socio-economic benefits expected to acquire from the proposed investment.
Why is identifying the target market considered to be a tedious task? State any four reasons.
What is meant by Break-even point? Why is it important for an entrepreneur to calculate Break-even point? State any four reasons.
Why is it important for an entrepreneur to do break-even analysis?
Rajiv and Ramesh entered into a verbal agreement to form a firm. They agreed to share its profits. Their business was running smoothly. One day a dispute arose between Rajiv and Ramesh regarding the profit-sharing ratio. Rajiv decided to move the court and enforce his rights against the firm and Ramesh. Will Rajiv succeed? Give reasons in support of your answer.
Mohan and Radha want to start a shop to sell Rajasthani Sweets. They did not know how to enter into the agreement. Therefore, they approached a Chartered Accountant who advised them to prepare a document which may stipulate the terms and consolidation of the agreement. Name the document about which the chartered accountant advised Mohan and Radha. Also state any four important items they should include in the agreement besides the name, nature and place of business.
Name and give the meaning of the economic activity that is performed by lawyers, doctors, chartered accountants and company secretaries.
When should an entrepreneur choose company form of business organization? List any four points.
State any two types of utilities created by business activities.
Sanjiv was developing a business plan for his organization. While working on the financial plan he realised that his financial requirements will be for fixed assets and their installations, preliminary expenses, working capital, expenses on research and development and investment in short-term assets viz. raw material, level of cash, etc. To decide on the sources of funds for the venture, he tried to ensure the selection of the best overall mix of financing for the enterprise.
a. Identify the elements of financial plan discussed here. b. Why is it important for an entrepreneur to ensure the selection of the best overall mix of financing for the enterprise?
How is target market identified while preparing the marketing plan? State.
State any four items of physical infrastructure that should be mentioned in the description of a business plan.
'Human life is built around works'. Identify the form of Business Organisation being talked about in the following sentences:
(a) 'The one-man control is the best in the world if that man is big enough to manage everything.'
(b) 'Two heads being better than one.'
(c) 'Self-help as well as mutual help system.'
(d) The birth of this legal person is by law and can be put to death by law only.
Give the meaning of 'Routing' and 'scheduling' as elements of operational plan.
Gaurav started a factory for manufacturing bags for students of nursery and primary classes. He invested Rs.2,00,000 of his own and obtained a loan of Rs.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.
Name and define the form of business organisation in which liability of its members is limited. State one more feature of this form of business organisation.
Give the meaning of 'Business situation analysis' and 'Identification of the target market' as steps in preparing the marketing plan.
Rahul wants to start a small shoe manufacturing factory. As a part of his business plan, he prepared an 'entertaining slide show and oral narrative' that was meant to trigger discussion and create interest in potential investors for reading the written presentation. Identify and explain the format of 'business plan' described in the above para.
Ashok is engaged in the production of readymade garments using cotton cloth. Identify the business activity in which Ashok is involved. Also name and define the utility created by Ashok.
Picturising ahead every step in a long series of separate operations, each step to be taken in the right place, of the right degree and at the right time. Each operation is to be done at maximum efficiency. This is one of the objectives of a component in business plan.
i) Identify the component of Business Plan.
ii) There are three situations before the venture under this component. Explain briefly the three situations of the identified plan.
Aman is a sole proprietor. Over the past decade, his business has grown from running a small home-based bakery selling cakes and pastries to operating three bakery outlets across the city. Although he personally handles purchasing ingredients, managing staff, and customer relations in all branches, for better management he is considering converting his sole proprietorship into another form of business organisation. He also wishes to expand his bakery chain to other cities in India. However, he is worried that if the business suffers losses, his personal savings and house might be used to repay business debts. He also feels that managing an expanding business alone is becoming difficult due to his declining health.
Identify and explain the features of sole proprietor business highlighted in the above case.
"In spite of certain restrictions imposed on a private company, it enjoys certain privileges under the Companies Act and a substantial number of entrepreneurs prefer to form a private company." Comment.
Explain proforma investment decisions and proforma financing decisions as components of a financial plan.
The business assets of an organization amount to ₹ 50,000 but the debts that remain unpaid are ₹ 80,000. What course of action can the creditors take if: (i) The organization is a sole proprietorship firm. (ii) The organization is a partnership firm with Anthony and Akbar as partners. Which of the two partners can the creditors approach for repayment of debt? Explain giving reasons.
Rohit completed his degree in Production Management and joined Galaxy Automotives Ltd., a company known for manufacturing electric scooters. He was assigned to the department responsible for ensuring that each component—from raw materials to the final product—moved smoothly through the production process. His mentor, Mr. Mehta, explained that their department performs a vital function by monitoring the movement of materials, performance of machines, and efficiency of workers. Curious about the process, Rohit asked Mr. Mehta for clarification. Mr. Mehta told him that the department prepares a detailed plan for every component to ensure an uninterrupted flow of materials from the initial stage to the finished scooter. This helps maintain continuous production and prevents delays. He also discussed the quality control systems that ensure high product standards. Mr. Mehta then showed Rohit an existing production plan and asked him to prepare a similar plan including all the necessary details he had learned. Explain the first three elements involved in this plan.
"An entrepreneur must pay attention to the quantity and quality of the manpower for his business as it directly impacts the performance and resulting productivity of the organization."
In the light of the aforesaid statement, identify the component of a business plan that helps an entrepreneur fulfil the stated purpose. State the objective and importance of the identified component.
"One of the components of a business plan effectively establishes how the entrepreneur will compete and operate in the marketplace. It acts as a guideline regarding the marketing objectives, strategies, and activities to be followed by any new enterprise."
(a) Identify the component of the business plan discussed above. (b) Explain the steps described in the plan that help an entrepreneur find the group of customers whose needs the enterprise aims to fulfil.
Prerna is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop, selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, for better management of the business she is thinking to convert her sole proprietorship into some other form of business. She also has plans to open branches countrywide. However, she is afraid of the fact that in case the business incurs losses, her personal property may be called upon to pay the business debts. She is also feeling that she may not be able to effectively manage a large business because of her deteriorating health.
(a) Identify and explain the features of sole proprietor business highlighted in the above case. (b) Also suggest to her the form of business organisation which will help her in continuing her business, stating reason in support of your answer.
Kartik works as a production analyst at 'Shree Tyres'. During the board meeting for the financial year 2022 – 23, the target production of tyres for the year was decided at 6 lakh units. The Managing Director of the company asked Kartik to prepare a blueprint in advance and 'work your plan'. He also added that this blueprint will ensure orderly flow of materials in the manufacturing process from the beginning to the end. Identify and explain the component of 'Business Plan' being discussed by the Managing Director.
(a) Explain the following elements of an operational plan:
(i) Scheduling (ii) Follow-up (iii) Inspection
What are the three most likely situations which arise before any firm while preparing the production plan?
Enlist any three points of importance in framing the business plan.
The production plan aims at 'plan your work', whereas operations plan ensures 'work your plan'. In the light of the given statement, examine the relevance of a operational plan for an entrepreneur.
Nandini did her post-graduation from Manipur University, Imphal. She had good job offers from several metropolitan cities but she thought of doing some creative work in Imphal. She observed that a special type of chilli was grown by the farmers of most of the villages around Imphal. This chilli has a distinct flavour and the pickle made from it also had a peculiar taste, but the local farmers were neither trained in farming of this kind of chilli on a large scale nor was there a secured market for their produce. Nandini shared this with her friends Dorjee and Shizu. Dorjee was an MBA in marketing and Shizu had done a basic course in food production and preservation. Nandini, Dorjee and Shizu formed an organisation for doing the business of pickle manufacturing using these chilies. Each of them contributed ₹2 Lakh towards the capital and decided to share the profits equally. They also agreed that any of them can act on behalf of all of them. Each one of them will be the principal as well as the agent of each other.
a. Identify the type of business organisation started by Nandini, Dorjee and Shizu. b. Quoting the lines, state the two features of the type of business organisation identified in part (a) above.
What does the manpower plan help to assess?
You are Ravi and you have planned to start manufacturing a new brand of chocolates aiming at teenagers. Your company 'Delight' has already been manufacturing and selling biscuits since 2010. The success of biscuits has encouraged you to move ahead into the chocolate industry. Keeping in mind the steps involved in preparation of the marketing plan draft a marketing plan explaining the first three steps.
Hemant, after completing his B-Tech from IIT Guwahati, decided to set up an enterprise to manufacture microchips as he had the required knowledge and expertise for the same. To determine the viability of the venture, he decided to prepare a business plan. He prepared an introductory profile and wrote the mission statement describing the size, scope, and nature of the enterprise. What else needs to be mentioned in the second component of the business plan? State any six.
Explain any six characteristics of a sole proprietor.
Rashi has done her Acharya degree in Ayurveda from Trichy. She is planning to start a small-scale enterprise of making herbal face care and body care products by the name 'Skinatural'. She makes use of her extensive knowledge about herbs to create products that can suit all skin types. She is also taking care of the allergen factor as the products have to be applied on skin. She is planning to offer only dry mix of the herbs to be blended by the user at the time of use.
Create an introduction for her product relating to the 'Product details' in the business plan which will help her to attract the customers.
Why is a business plan valuable for an entrepreneur? Explain with the help of any four points.
An organisation will have to look into three situations while framing the production plan. Explain these three situations.
Ashok was an entrepreneur. He prepared a plan for manufacturing a car with some unique features.
He decided to set-up the manufacturing unit in a reputed industrial area of Gujarat where labour and the facilities for their training were available at a cheap rate. The plan also discussed about issues of long-term social welfare like arrangement for dumping and disposing of waste or emissions. He also decided that some components of the car would be imported from France. The above information describes an important component of a business plan.
(a) Identify the component. (b) State three elements other than those discussed in the above para to be covered under this component.
Identify and explain formal statement of business goals with the plan for reaching those goals along with background, information about the organization and team attempting to reach those goals. How is this statement valuable to the entrepreneurs, customers, advisors and others who are trying to familiarize themselves with the venture, its goals and objective? Explain with the help of any six ways.
Subeer, a tech-entrepreneur and his friend Harish, an investment banker planned to start a business organization where they can exercise control over the business, manage it with limited liability and that its continuity is not affected by entry or exit of members. They intend to maintain the confidentiality of the business operations as well. Identify the form of business organization best suited for them giving reasons for the choice?
"Writing a good business plan can't guarantee success, but it can go a long way towards reducing the odds of failure." Elucidate the importance of a business plan in this context.
a. What is a 'Business Plan'? b. State any one importance of writing a business plan for each of the given interest groups: - i. Investors - ii. Entrepreneur
Gopi, in order to promote local craftsmen of Gujarat, formed an organization where in the persons voluntarily associate themselves to promote common economic interest. The basic purpose of this organization was to help these craftsmen to find market for their products. It had a managing committee that was elected on the basis of 'one member one vote'.
a. Identify the form of business organization set up by Gopi. b. Quoting the lines form the above para, state any two features of this form of organization.
What will be the effect on Production Plan in the following situations:
a. When there is no manufacturing b. When there is partial manufacturing c. When there is complete manufacturing
Why is Break-even analysis regarded as a useful element of financial plan?
Singh and Gupta decided to start a leather bag manufacturing unit. They entered into an agreement stipulating the different aspects of business. Now they want to register the organization they have formed. Identify the form of organization formed by them and describe the procedure of its registration.
Briefly explain any three characteristics of 'trading'.
State the circumstances under which the sole-proprietorship form of business organization is suitable.
What is meant by an operational plan? Briefly explain its elements.
List the socio-economic benefits that are expected to be acquired by an enterprise from its proposed investment.
Gopal is a young man of 23 years. He has completed a tailoring course from an industrial training institute. He wants to start a big size tailoring shop in a posh colony where young men and women working in various multinational companies line. He went to one of his friends who had completed a B.Tech course in textile designing to discuss about the opening of the tailoring shop. His friend advised him to prepare a written document describing formally all the relevant external and internal elements involving in starting a new venture. It will not only help in understanding the feasibility and viability of the proposed venture but also facilitate in assessing and making provisions for the bottlenecks in the progress and implementation of the idea. State any six points of importance of the concept discussed by Gopal with his friend.
What is meant by business? List the different categories in which business activities can be classified.
What is meant by partnership? State the consequences of non-registration of a partnership firm.
Describe the formats for the business plan that a start-up may have.
Manohar and Manav were running a partnership firm. The firm is engaged in the production and marketing of edible oils. Manohar was looking after the production and Manav used to look after the remaining operations of the business. The firm was doing good business and earning profits more than the rate of profit of the industry. They used to be fair in their dealings with the customers and other stakeholders of the business. They used to do their quantitative planning meticulously. The edible oil produced by the firm is as per the fssai standards.
(a) Explain any one type of plan prepared each by Manohar and Manav with quantitative expressions. (b) Identify any two values observed by Manohar and Manav.
Mahesh is a young man of 20 years. He has completed a tailoring course from an industrial training institute. He wants to start a big size tailoring shop in a modern locality where young men and women working in various multinational companies live. He went to one of his friends who had completed a diploma course in textile designing to discuss about the opening of the tailoring shop. His friend advised him to prepare a written document describing formally all the relevant external and internal elements involved in starting a new venture. It will not only help in understanding the feasibility and viability of the proposed venture but also facilitate in assessing and making provisions for the bottlenecks in the progress and implementation of idea. State any six points of importance of the concept discussed by Mahesh with his friend.
Two years ago, Gopal started manufacturing low fat, sugar-free ice-cream on a small-scale basis in his home town, Vishakhapatnam. After some time, his ice-cream became popular among health-conscious young customers and old persons specially those having diabetes or some heart ailment. Because of the popularity of the ice-cream the demand has increased manyfold. Gopal is unable to meet the same, because of his limited managerial ability and limited capital. Gopal also felt that whenever he fell sick his business was temporarily closed. To overcome this problem, he decided to admit in the business his friend Mohan who has recently completed his MBA and is ready to invest money for the expansion of the business. Mohan advised Gopal to get their firm registered.
(a) State three limitations indicated in the above para from which Gopal's business suffered. (b) Why did Mohan advise Gopal to get the firm registered?
List any six factors that may affect the selection of a form of business enterprise.
Deepak and Gaurav joined the prestigious law university in Ahmedabad in the year 2010. 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 their own, namely 'Corpo Law Firm' wherein both of them will be co-owners dividing the profit and loss. After successfully running the firm for a year, they realized that there are certain rights which are denied to their firm as it is not registered. Explain the consequences of non-registration of their firm.
Explain any three characteristics of a company.
Kapish an unemployed graduate got training for automobile repairing and allied services under PMKVY (Pradhan Mantri Kaushal Vikas Yojana) for skill development. He is planning to start a digital workshop for which he needs 25 lacs. Though through MUDRA (Micro Units Development and Refinance Agency) he is able to get a loan of 10 lacs but still he is falling short of 15 lacs. He wants to pitch in his idea to potential investors through his business plan. Explain the different formats in which he can present his business plan for his start-up.
Explain any three features of a 'Co-operative Organisation'.
Rohit Shetty stated leader shoe business with his brother. Both were very excited about the new venture. With meticulous planning and a lot of hard work they were able to sell 700 pairs of shoes in the first year. But they did not earn any profit. Both were happy because they were not at loss and revenue generated was equal to the cost. Now they were moving towards earning profit in the second year.
(a) Identify the component of financial plan discussed above. (b) By giving any four points state how this component is useful for the entrepreneur?
"All business plan for sales volumes and revenues, resource quantities, costs and expenses etc."
Identify the concept involved in the above planning and state any two benefits of this type of plan.
Before operationalisation of a Hindu Undivided Family Business, its Karta has to fulfill certain legal formalities. Explain any three such legal formalities.
Bigul Chaturvedi started a school bag business with his brother. Both were very excited about the new venture. With meticulous planning and a lot of hard work they were able to sell 1,000 bags in the first year. But they did not earn any profit. Both were happy because they were not at loss and revenue generated was equal to the cost. Now they were moving towards earning profit in the Second year.
(a) Identify the component of financial plan discussed above. (b) By giving any four points state how this component is useful for the entrepreneur.
"All business planned for sales volumes and revenues, resource quantities, costs and expenses etc." Identify the concept involved in the above planning and state any two benefits of this concept.
After passing his 12th class with entrepreneurship as an elective subject 'Guru' started his own business. He invested Rs.2,00,000 as capital which was given to him by his father. He obtained a loan of Rs.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 Rs.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 Rs. 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 Rs.75,000 in the second year.
(a) Identify the form of business organisation started by 'Guru'. (b) State any five features of such a form of business organisation.
After doing her M. Com from 'Himachal Pradesh University of Shimla', Komal went back to her village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of women of her village, so she formed an organisation, the membership of which was open for all the women villagers on a voluntary basis by paying Rs.500 only which will be treated as their capital. Komal knew that the land of her village was suitable for the farming of medicinal plants. So, she motivated the members of her organisation for growing medicinal plants in their fields under the guidance and help of the local agricultural department. It was also decided that the organisation will purchase the produce of each member and sell the same to drug manufacturing companies at a very good price which was not possible for the members individually. The main objective of the organisation is to render services to its members rather than to earn profit.
A computer training center for young boys and girls of the village was started under the guidance of Komal from the surplus of the profits.
(a) Name the process that helped Komal in developing an idea into an opportunity (b) Identify the kind of organisation that was formed by Komal (c) State any two values which komal wanted to communicate to the society.
Karim after completing his XII exam from his village school joined the course of electrician in an ITI in a town near his village. On completion of this course, he tried for a government job but could not get the same. He, therefore decided to help as a worker to a renowned electrician in that area. After working with him for two years he decided to start his own electrician shop in the village. For this he purchased equipment for Rs.10,000 and hired a shop at a monthly rent of Rs.2000. He decided to manage the shop by himself.
(a) Identify the form of business organisation started by 'Karim'. (b) State any four characteristics of such a form of business organisation.
Lalitha Devi did her post-graduation from Manipur University, Imphal. She had offers to join in reputed firms in metropolitan cities like Delhi and Mumbai. Instead of joining any of these firms she decided to do some creative work in Imphal. She observed that a special type of chilli is grown by the farmers in most of the villages in Imphal. This chilli has a distinct flavour and pickle made from this chilli has a taste which may be liked by people from the rest of the country. But the farmers were neither trained for this kind of farming of this kind of chilli on a large scale nor was there a secured market for their produce. Lalitha devi met 18 likeminded women of the area and formed an organisation for doing the business of pickle manufacturing. Each of them contributed Rs.2,00,000 towards its capital and were equally responsible for its management. On one hand they assured the farmers to purchase their chilli and on the other hand, the organisation with the help of local agriculture department arranged for the training of the farmers. They also employed 10 local unemployed graduate girls for doing the various operations of pickle making.
(a) Name the process that helped Lalitha Devi in converting an idea into an opportunity (b) Identify the kind of organisation that was formed by Lalitha Devi. (c) State any two values which Lalitha wanted to communicate to the society.
Kiran finished his graduation from Polytechnic college in the year 2018. He had specialised in repairing of electronic goods. After few months of his graduation, he met his uncle who has a small factory manufacturing electronic circuits used in Television. His uncle informed Karan that he could no longer run the unit so Karan decided to take over the factory. His uncle had two workers. Karan was able to get a huge order of supplying ₹ 10,000 units of electronic circuits every month from a popular TV manufacturing company in India. He knew that to meet the orders timely he has to employ more people. In order to do so he decided to formulate Manpower planning.
Describe the factors that Karan has to keep in mind while formulating a manpower plan.
During the increasing concern about environmental pollution, Riya, an entrepreneur, designed an innovative portable air purifier that can be attached to a backpack or kept on a desk. The device not only purifies the surrounding air but also changes its indicator light when the filter needs replacement. Additionally, it can send an alert to the user's smartphone if the air quality drops below safe levels. The idea seems highly promising and marketable, but Riya needs to attract investors to finance her idea. To do so, she prepared a slideshow and few key graphs summarising her business plan to trigger the interest of potential investors, customers and business partners.
(a) Give the meaning of 'business plan' and identify the format of business plan used by Riya. (b) Explain three formats of business plan other than the one identified in above.
Explain the steps involved in preparing the marketing plan.
Radiant Foods Pvt. Ltd. had a team of experienced professionals and consultants who prepared a detailed yearly report containing all relevant information about the company's internal and external environment for managing business operations. This document serves as a vital decision-making guide for the management. The Managing Director of the company always gives special attention to one particular aspect of this report that ensures the smooth and systematic flow of ingredients and materials from procurement to the final packaged food product, with strict quality control at every stage. According to her, "Executing your plan efficiently is more important than just making a plan." (a) Identify the 'comprehensive yearly document' being prepared by Radiant Foods. (b) How is this plan a 'decision-making tool' for the management? (any two) (c) Identify the element that is the priority of the Managing Director of the company and explain any two importance.
Explain any 5 components of Financial Plan.
A group of entrepreneurs decided to start a large-scale business in the automobile industry to manufacture eco-friendly electric cars under the name 'EcoRide Motors'. Since the business required huge capital investment for setting up factories, research, marketing, and distribution networks, the founders decided to form a business organisation. They reviewed their circumstances, finances and goals. They decided to legally organize the company so it has limited liability. (i) Identify the form of business organization can be adopted by EcoRide Motors (ii) State and explain any four features of this form of organization.
Abhimanyu Industries Ltd. had a team of professionals and experts to draft a comprehensive yearly document with all the relevant details of internal and external elements in managing the venture. This document acts as a decision-making tool for the management. The Chief Executive Officer of the company always pays special focus on one element of this document that ensures the orderly flow of materials from raw state to finished product with a proper system of quality control, as according to him 'work your plan' is more important than 'plan your work'.
(i) Identify the 'comprehensive yearly document' being prepared by Abhimanyu Industries. (ii) How is this plan a 'decision-making tool' for the management? (iii) Identify the element that is the priority of the CEO of the company. (iv) Why is the element as identified in (iii) important?
Briefly explain five elements of operational plan.
Read the passage and answer the following questions:
While preparing an operational plan, an entrepreneur has to pay attention towards various elements. Explain these elements.
The Covid-19 pandemic has ushered an era of new business opportunities for many businesses.
Rajat, an entrepreneur, designed a unique N-95 face mask which would not only filter the air inhaled but also change its colour when the mask is no longer good for use. Not only this, it would also send an alert in case the user of the mask comes in contact with any virus in the air. The idea sounds good and marketable, but Rajat needs to impress the investors to fund his idea. Rajat prepared a three-minute summary of the business plan executive summary to awaken the interest of the potential funders, customers or strategic partners.
(a) Give the meaning of 'business plan' and identify the format of business plan used by Rajat. (b) Explain three formats of business plan other than the one identified in (a) above.
(a) Give the meaning of 'Company' form of business organisation. Explain the following features of a company:
(i) Separate Legal Entity (ii) Limited Liability (iii) Transferability of Shares (iv) Diffusion of Ownership and Management
Aneesh, a young entrepreneur, wishes to take his family business of designer fabrics to greater heights with the knowledge he has acquired at 'National Institute of Fabric Development'. His father gave him ₹ 25 lakh as a seed capital to start his own new product line under the family business.
Aneesh is venturing into leather and faux leather for which he needs to plan his business before he goes ahead with the execution. He knows that transformation of raw material into finished products takes place with the help of energy, capital, manpower and machinery. Further, he realised that manufacturing operations are highly complex and tedious, hence need to well planned.
(a) Identify the component of business plan Aneesh is discussing about. Also state its objective. (b) Explain the three different options available before the venture.
Karthik is in the business of manufacturing laptop components since 2010. They have been supplying their parts to all major manufacturers. His son Harsh took over the factory in 2022. He had done his Masters in Business Administration and wanted to expand the operations of the company. He planned to start manufacturing laptops to be sold in the Indian market. He discussed the idea with his financial team. They estimated the cost of the project to be around Rs. 65 crores. They decided to take the required funds from potential investors.
The financial team of the company decided to make a plan which will explain to the potential investor the ways and means of how the entrepreneur plans to meet all financial obligations.
Explain any five components of this plan.
Give the meaning of a Business Plan. Explain the formats in which a business plan can be presented.
Aman started his business of manufacturing designer home decor items in Mumbai. His business was growing because of the quality products he offered. He thought of expanding it to other cities of Maharashtra and for this he required more financial and human resources. Aman approached his Chartered Accountant, Rohan, for advice on his future course of action. Rohan suggested to Aman to go for company form of organisation where he could start even with two members, and have a minimum paid up capital of ₹ one lakh. Acting on the advice of Rohan, Aman formed a company with one of his friends. (a) Identify the type of company formed by Aman and his friend. (b) State any four privileges enjoyed by the type of company identified in (a) above.
The Covid-19 pandemic has ushered in an era of new business opportunities for many businesses.
Rajat, an entrepreneur, designed a unique N-95 face mask which would not only filter the air inhaled but also change its colour when the mask is no longer good for use. Not only this, it would also send an alert in case the user of the mask comes in contact with any virus in the air. The idea sounds good and marketable, but Rajat needs to impress the investors to fund his idea. Rajat prepared a three-minute summary of the business plan executive summary to awaken the interest of the potential funders, customers or strategic partners.
(a) Give the meaning of 'business plan' and identify the format of business plan used by Rajat. (b) Explain three formats of business plan other than the one identified in (a) above.
Explain any six essential characteristics of business.
Explain any four components of a financial plan.
Explain any six components of a financial plan.
In addition to 'number of persons', 'profit sharing' and 'agreement', there are various other features of partnership. Explain any six such features.
Explain the various steps involved in preparing a marketing plan?
Explain the various elements of an Operational plan?
Suman joined a catering college after finishing her schooling. She specialised in baking cakes. After finishing her course, she along with her two friends started a bakery shop in Lucknow. Her shop was an instant success as the cakes were produced with high quality ingredients. In the month of November, Suman's sister's birthday approached and her mother requested her to bake a cake for the birthday. Suman baked a cake for her sister at their home for her sister's birthday. Identify and state the nature of activity performed by Suman for her sister and at her shop.
Sandeep had started his business of dairy products in 2013. He wanted to expand his business but did not have the necessary funds. One of his friends suggested that he should approach Mr. Goel, a venture capitalist for further funds. When Sandeep approached Mr. Goel, he was given three minutes for explaining his business proposition. Identify and explain the format of business plan referred in the above para.
Vikram, a new generation high tech farmer is involved in organic farming. He realized that there was a huge market for his fruits and vegetables as people have become diet conscious and prefer to eat healthy food. Keeping this in mind, he decided to open Salad bars and organic fruit juice corners in prominent malls in Delhi. Now he needed a road map for himself to start the venture. (a) Identify the term used for road map by Vikram. (b) Why this road map is required?
Deepika wanted to pitch in to reduce the financial crisis prevailing in her house and thought of working as a cook. She started working in three different households, one Punjabi, one Gujarati and one South Indian family. She soon realized that all the three households had different cuisine. It was indeed a challenge for her to learn the techniques of the cuisine. All the families greatly appreciated the timeframe within which she had mastered the local cuisine. After working for them for a year, she decides to open a small eating joint of her own along with two of her friends by the name Apna Bhoj. They decided to share profits equally and that each of them will be liable for acts performed by the other two. Soon the eatery became a hot spot because of the fusion platter which was being offered. (a) Identify the kind of business organisation which was set up by Deepika and her friends. (b) Quoting the lines from the paragraph, state the features of this form of business organization.
Chacko Ltd. has been manufacturing umbrellas since 1980. They are the market leaders in manufacturing small hand size umbrellas. They have their production unit in Kochi. The MD son Abraham Chacko took over the family business in 2010. He had finished graduation from USA. Using his educational and networking skills, he was able to take up an export order. He also decided to operate an exclusive export oriented unit in Chellanam. The production work for this unit began in 2014. A dedicated team framed an operational plan for the entire process. Abraham visited the plan to evaluate and take appraisal of the work performed in the unit. State two ways as to how it will help Abraham.
A recent survey conducted jointly by FICCI and Indian Angel Network revealed that 70 percent of startups across the country have been impacted by COVID-19 while as many as 12 per cent have had to halt operations altogether. These are difficult times that no one was prepared to deal with. The prolonged lockdown had a massive impact on the startup ecosystem. Given that they rely largely on a constant flow of capital and investments, which due to the pandemic came to a complete standstill. With the ongoing crisis, to keep startups afloat has become quite a challenge. However, this challenge can be eliminated if entrepreneurs adapt to the current times, adopt new strategies, and are open to experiments and pivot their business plans. Keeping in mind this article, state any two things which should be written by startup companies in their manpower planning component of business plan.
AB Ltd., manufacturing light bulbs decided to start manufacturing of ceiling fans. They formed a sister concern by the name Cool Air Ltd. The new company was in need of some investment and for the same they had approached a bank. They had submitted a business plan to the bank stating all the necessary details. They had mentioned very clearly in the plan that they will be manufacturing the blades and have decided to outsource the required motor parts. The plan spoke about the reason for outsourcing along with the contracts with subcontractors. (a) Explain the Component of the business plan along with its related sub part. (b) The business plan further gave details about the money which will be invested by the owners and how much they are expecting to borrow. Identify and explain the component and its element.
This document is valuable to the entrepreneur, potential investors, venture capitalists, banks, financial institutions, new personnel suppliers, customers, advisors and others who are trying to familiarize themselves with the business venture, its goals, and objectives. State any four reasons for the importance of this document.
Aarushi finished her Bachelors degree in Management and decided to join Paras Pharmaceuticals. She was placed under the department which oversaw the exact route of each individual item. Her supervisor Kumar explained that their department plays a very important function of looking into the movement of material, performance of machines and operations of labour. She was surprised and asked Kumar the reason and he further explained that the department makes a plan for every item which will ensure the orderly flow of materials from raw material stage to the finished product stage and this will enable continuous production always. He further elaborated on various systems used for quality control. Kumar showed her an existing plan and asked Aarushi to devise a plan incorporating all that he had explained. Explain the first five elements involved in this plan.
Gauri started her business of manufacturing designer furniture in Lonavala. Her business was a huge success and she thought of starting a designer studio involving huge capital in Mumbai as well as in Pune. Her friends wanted to join hands with her and open the same. They approached a chartered accountant and he suggested them to form a private company as according to him this form of company is more desirable.
a. State any six privileges of a private company that make it a more desirable than a public company. b. Why a company is called 'an artificial person having perpetual succession and a common seal'?
Suresh wanted to start a sole-proprietorship form of business. He expects that his annual turnover is likely to be more than ₹ 15 lakhs. His friend Anil advised him to obtain a PAN number from Income Tax Department. Suresh wanted to know the meaning and importance of PAN and also the parties who must have a PAN card. Anil explained him the meaning and importance of PAN and also explained the different parties who must have PAN card. In the light of the above:(a) Give the meaning and importance of PAN as described by Anil with Suresh. (b) Also, state the various parties that must have a PAN card.
Ghosh started a sole proprietorship form of business. He expects that his annual turnover will be rupees 12 lakhs. His friend Bannerjee advised him to obtain the necessary document from the Income Tax Department. Ghosh wanted to know about the document and also the parties who must have it. Bannerjee explained him the meaning of the document and also explained the different parties who must have it. In the light of the above statement:(a) give the name and meaning of the document explained by Bannerjee to Ghosh (b) Also, state the parties that must have this document.
Latha started her business of making dosa batter from her home during her free time and started selling the same to households in her area. The batter was a huge success as the quality was good and according to the taste of the target market. She decided to make it into a full-time business. Her entire family supported the venture. She approached few family members and friends who lent her around Rs.2 lakh. With that money she purchased some machinery and took a small space on rent to start producing the batter. Her batter in the name of 'Home Taste' was a huge hit in the market. Within a span of few years her business grew double fold.
She was talking about her successful venture to her brother who is also a chartered accountant. He suggested her that she should improve her business model so that it will enable mass production. They analysed that they will have to make a list of all pros and cons of increasing the business. Keeping this in mind, her brother prepared a document which described formally the relevant external and internal elements involved in starting the venture on a large scale. This document comprised of various components. Explain in detail any six items which should be included in the component which gives a projection about the economic feasibility of the enterprise
Kavita has observed that there can be a good market for hand – knitted cotton and woollen trendy garments for small kids up to the age of three years. She thought of starting a small enterprise for the same. She also ensured that the enterprise will require 10 – 15 trained workers and an investment of rupees two lakhs. This will give 40% annual return on investment.
(a) Quoting lines from the above para, identify and give the meaning of the entrepreneurship concept being stated in the above para.
(b) Also, state the elements of the concept identified in (a) above
Arvind Mallu, a brass artesian from Moradabad had a stall in the 'Trade Fair' showcasing his range of products made of brass. He manufactures and sells from saree pins to big flower-vases and lamp-shades. He got good response from the public and even enquires from foreign businessmen. He wants to switch from an unorganized unit to a well-planned unit which would be called 'Peetalkari'. For this he needs to know the feasibility of the enterprise and the potential financial commitments for the new venture. He approached Dena Bank for financial assistance. The manager asked him for two documents. I. A comprehensive document that describes the external and internal elements involved in starting his enterprise. II. A sub-part of the above document that will satisfy the following queries of the manager: (i) How will the funds of the enterprise be invested in different assets? (ii) Apart from bank loan, what are the other sources of finance that Arvind Mallu would use? (iii) What is the projected profit for the new unit? (iv) How will Arvind Mallu determine the volume of sale required to cover the total variable and fixed expenses of his unit? Arvind Mallu had to draft the two documents clearly stating the answers for the query raised. (a) By what name is the comprehensive document known as? (b) Which sub-part of the comprehensive document is to be prepared by Arvind Mallu? (c) Identify and explain the different components of the sub-part that Arvind Mallu is required to write in his comprehensive statement to satisfy the queries of the manager
Nitin, Mohit and Palak are partners in a firm NMP associates. They have been carrying on stationary business successfully for last many years. This year Naveen, a vendor, supplied sub-standard paper which was not as per specifications. Because of this, the entire consignment to Singapore got rejected and the firm had to bear a big loss. All the partners approached a lawyer to file a case against Naveen. Lawyer told them that they could not file a case against Naveen.(a) Why were the partners not able to file a case against Naveen? (b) Describe the procedure the firm should follow to file a case in such a situation in future.