Assignment: Entrepreneurship Development

ASSIGNMENT
Entrepreneurship Development
Submitted By: Submitted To:

Md Sabir Mr. Manjit Singh
1615300036
Civil(4th Year)
Q.1 Define marketing.

Ans: Marketing is the study and management of exchange relationships. It is the
business process of identifying, anticipating and satisfying customers' needs and wants.
Because marketing is used to attract customers, it is one of the primary components of
business management and commerce.
Q.2 Define the term wages.

Ans: A wage is monetary compensation paid by an employer to an employee in
exchange for work done. Payment may be calculated as a fixed amount for each task
completed, or at an hourly or daily rate, or based on an easily measured quantity of
work done. Wages are part of the expenses that are involved in running a business.
Q.3 Comment on the statement`` is accounts a Science or an Art’’.

Ans: Accounting is both a science and an Art: Science may be defined as a systematic
body of knowledge based on certain principles which have universal application. It
establishes relationship of cause and effect about any occurrence or happening. ... To this
extent, accounting is still an art.
4. What do you mean by inventory control? Give objectives and advantages of inventory
control.
Ans: Inventory control, also referred to as stock control, is so broad and incorporates so
many functions that it is difficult to describe in a limited definition, but we like how this
Inc.com entry puts it: Inventory control refers to “all aspects of managing a company’s
inventories: purchasing, shipping, receiving, tracking, warehousing and storage,
turnover, and reordering.” Inventory control is such a critical piece of an organization’s
operations and bottom line that it is too important to leave to human error or antiquated
systems. That’s why so many companies opt to invest in inventory control systems, so
that all of the components of inventory control are managed by one integrated system.
Objective:
a) To minimise capital investment in inventory by eliminating excessive

stocks
b) To ensure availability of needed inventory for uninterrupted production and for
meeting consumer demand
c) To provide a scientific basis for planning of inventory needs
d) To tiding over the demand fluctuations by maintaining reasonable safety stock
e) To minimise risk of loss due to obsolescence, deterioration, etc
Advantages:
a) It improves the liquidity position of the firm by reducing unnecessary tying

up of capital in excess inventories.
b) It ensures smooth production operations by maintaining reasonable stocks of
materials.
c) It facilitates regular and timely supply to customers through adequate stocks
of finished products.
d) It protects the firm against variations in raw materials delivery time.
e) It facilitates production scheduling, avoids shortage of materials and duplicate
ordering.
Disadvantages:
a) Efficient inventory control methods can reduce but cannot eliminate business risk.
b) The objectives of better sales through improved service to customer; reduction in
inventories to reduce size of investment and reducing cost of production by
smoother production operations are conflicting with each other.
c) The control of inventories is complex because of the many functions it performs.
It should be viewed as shared responsibilities.
Q.5 State the difference between trading account and profit & loss account.
Ans:
a) Trading account is a part of the financial statement, prepared by the entities to
show the result of trading activities, i.e. purchase and sale of goods. On the other
hand, profit & loss account is an account indicating the actual profit earned or loss
sustained by the business during the accounting period.
b) Trading account determines the gross profit or loss for the accounting period. As
against, profit & loss account ascertains the net profit or loss for the given period.
c) The balance of the trading account is transferred to the trading account, whereas
the balance of profit & loss account is taken to capital account, in the Balance
Sheet.
d) Trading account is a summary of all direct revenue and direct expenses.
Conversely, Profit & Loss account takes into account all operating and non-
operating incomes and expenses.
Q.6 Write a note on Communication in a business enterprise.

Ans: Business communication is the process of sharing information between people
within and outside a company.
Effective business communication is how employees and management interact to reach

organizational goals. Its purpose is to improve organizational practices and reduce errors.
The importance of business communication also lies in:
a) Presenting options/new business ideas

b) Making plans and proposals (business writing)
c) Executing decisions
d) Reaching agreements
e) Sending and fulfilling orders
f) Successful selling
g) Effective meetings
Q.7 Describe capital expenditure. How to calculate it?
Ans: Capital expenditures, commonly known as CapEx, are funds used by a
company to acquire, upgrade, and maintain physical assets such as property,
buildings, an industrial plant, technology, or equipment.
CapEx is often used to undertake new projects or investments by the firm. Making
capital expenditures on fixed assets can include everything from repairing a roof to
building, to purchasing a piece of equipment, to building a brand new factory. This
type of financial outlay is also made by companies to maintain or increase the scope
of their operations.
Method to calculate capital expenditure:

If you have access to your company's cash flow statement or its income statement
and balance sheet, you won't need to perform a calculation by hand. Either way,
doing the calculation by hand will help you to better understand the concept and
what it entails. Follow these steps to calculate capital expenditures:
a. Obtain your company's financial statements
b. Subtract the fixed assets
c. Subtract the accumulated depreciation
d. Add the total depreciation
Q.8 What do you understand by the term partnership? What is partnership firm? Discuss
its advantages and disadvantages.
Ans: A partnership is a form of business where two or more people share ownership, as
well as the responsibility for managing the company and the income or losses the
business generates. That income is paid to partners, who then claim it on their personal
tax returns – the business is not taxed separately, as corporations are, on its profits or
losses.
There are three types of partnerships:

a. General partnership
b. Limited partnership
c. Joint venture
Advantages of partnership:
a) Easy Formation
b) Large Resources
c) Talent can be Pooled
d) Flexibility
e) Reward for Effort
f) Informed, Balanced and Careful Decisions
Disadvantages of partnership:
a. Unlimited Liability
b. Conflicts
c. Uncertain Future
d. Transferability of Interest
e. Public Interest
f. Not a Legal Entity

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ASSIGNMENT

Submitted By: Submitted To:

Q.1 Define marketing.

Q.2 Define the term wages.

Q.3 Comment on the statement`` is accounts a Science or an Art’’.

a) To minimise capital investment in inventory by eliminating excessive

a) It improves the liquidity position of the firm by reducing unnecessary tying

Q.6 Write a note on Communication in a business enterprise.

Effective business communication is how employees and management interact to reach

The importance of business communication also lies in:

a) Presenting options/new business ideas

Method to calculate capital expenditure:

There are three types of partnerships:

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