CH 2 Chapterwise PYQ

Chapter – 2
Enterprise
Planning
CBSE 2023-24 Sample Paper
Q1. Identify the various factors which will help the entrepreneur as well as the potential investor from the
organisational plan.
i. Long-term effectiveness of the enterprise
ii. Profitability
iii. Specifying the types of skills needed and the roles that must be filled by the members
iv. the attitudes, behaviours, dress, communication styles etc., thus chalking out informal organisation
a. i and ii only
b. i, iii and iv only
c. i, ii, iii and iv
d. i, ii, iii
Ans c. i, ii, iii and iv
Q2. What are the three most likely situations which arise before any firm while preparing the production
plan? (3 Marks)
Ans The three situations are:

a) No manufacturing involved: If the new venture does not include any manufacturing function, say it’s a
trading firm or a service provider, then this section will stand eliminated from the plan.
b) Partial manufacturing: If some or all the manufacturing process is to be subcontracted or outsourced,
then the production plan should describe:
i) Name and location of subcontractor(s)
ii) Reasons for their selection
iii) Cost and time involved
iv) Any contracts that have been completed etc.
In such cases, a clear mention of what entrepreneur intends to do himself and what he plans to get it done
from outside is required.
c) Complete Manufacturing: If the manufacturing is to be carried out in whole by the entrepreneur, he/she
will need to describe:
i) the physical plant layout,
ii) the machinery and equipment required to perform the manufacturing operations,
iii) raw materials and suppliers’ names, addresses, terms and conditions,
iv) cost of manufacturing
v) any future capital equipment required etc.
Q3. Enlist any three points of importance in framing the business plan. (3 Marks)
Ans The business plan –

a) helps in determining the viability of the venture in a designated market
b) helps in providing guidance to the entrepreneur in organizing his/her planning activities as such:
i) identifying the resources required
ii) enabling obtaining of licenses if required etc.
iii) working out with legal requirements as desired by the government.
c) helps in satisfying the concerns, queries, and issues of each group of people interested in the venture.
d) provides room for self-assessment and self-evaluation, requiring entrepreneur to think through various
scenarios and plan ways to avoid obstacles.
e) though not desirable, at times, business plan helps to realize the obstacles which cannot be avoided or
overcome, suggesting to terminate the venture while still on paper without investing further time and
money.
f) as the investors/lenders focus on the four Cs of credit: character, cash flow, collateral and equity
contribution
(Any three points)
Q4. 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. (3
Marks)
Ans It is actually a blue print prepared right in advance of actual operations —

i) Ensuing orderly flow of materials in the manufacturing process from the beginning (raw state) to the end
(the finished products)
ii) Facilitating continuous production, lesser work-in-progress and minimization of wastage.
iii) Co–ordinating the work of engineering, purchasing, production, selling andinventory management.
iv) Describing the flow of goods / services from production point to the consumers.
v) Introducing a proper system of quality control
vi) Undertaking the best and most economic production policies and methods.
(Any three points)
Q5. 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. (5 Marks)
Ans Financial Plan. Components of financial plan

A) Proforma investment decisions:
This part of financial plan relates to how the enterprise's funds are invested in different assets so that the
enterprise is able to earn the highest possible returns on investment. An estimate of various components
of capital nature.
B) Proforma financing decisions:
In this component This section summarizes all the projected sources of funds available to the venture to
raise finance from.
Typically, sources of funds are:
i) owners i.e., Owner's funds
ii) outsiders i.e., Borrowed funds
C) Proforma income statement
The proforma income statement is the projected net profit calculated from projected revenue minus
projected costs and expenses. It summarizes all the profit data during the first year of operations of the
new enterprises. In preparing the proforma income statement, 'sales by month' must be calculated first,
making use of forecasting techniques as the basis.
D) Proforma cash flow
Profit and cash flow are not the same, when from sales we subtract expenses, the result is profit and when
from cash receipts we subtract cash payments, the resultant figure is thecash flow. Proforma cash flow
reflects the projected cash available with the enterprise as a result of subtracting projected cash
disbursements from projected cash accumulations. Cash flows only when actual payments are received or
made. Mere sale which might be on credit, will not generate cash.
E) Proforma balance sheet
This document helps the enterprise to reflect the position of the business at the end of its first year. A
summary of the projected assets, liabilities and net worth of the entrepreneur is depicted through
proforma balance sheet.
F) Break–even point
Every firm wants to maximise its profits. The Breakeven point is that level of volume of production at which
firm neither makes a profit nor a loss. Here, the total revenue is equal to the total cost of a firm, at the
given level of capacity.
G) Economic and social variables
In view of the social responsibility of business, the abatement costs, i.e., the cost of controlling the
environmental damage should also be stated in the plan. It's always advisable to mention in the business
plan, the socio-economic benefits expected to acquire from the proposed investment.
(Any 5 points in detail)
CBSE 2022-23 Compartment Paper
Q1. Assertion (A): Minors cannot form a partnership firm. (1 Mark)

Reason (R): Minors are incompetent to enter into a valid contract.
Choose the best option from the following:
a. Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation for Assertion(A).
b.Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation for Assertion(A).
c. Assertion(A) is true, but Reason(R) is false.
d. Reason(R) is true, but Assertion(A) is false
Ans a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation for Assertion
(A)
Q2. Assertion (A): Break-even point is that level of production where there is neither loss nor profit. (1
Mark)
Reason (R): Break-even point helps in determining the product that are not contributing to meet fixed
expenses.
Choose the best option from the following:
a.Both Assertion (A) and Reason (R) are true and Reason(R) is the correct explanation for Assertion(A).
b.Both Assertion (A) and Reason (R) are true and Reason(R) is not the correct explanation for Assertion (A).
c. Assertion (A) is true, but Reason (R) is false.
d. Reason (R) is true,but Assertion (A) is false.
Ans b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation for
Assertion (A)
Q3. 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:
(1 Mark)
a. Partnership
b. Public company
c. Sole proprietorship
d. Private company
Ans c. Sole Proprietorship
Q4. Which of the following statements is not true about a Private Company? (1 Mark)
a. A private company has a minimum of two (2) and maximum of fifty (50) members.
b. A private company does not restrict the right of transfer of shares of the members.
c. A private company uses the word ‘Pvt. Ltd.’ at the end of its name.
d. A private company prohibits the public to subscribe for its shares or debentures.
Ans b. A private company does not restrict the right of transfer of shares of the members
Q5. Why is it important for an entrepreneur to do a break-even analysis? State any two points. (2 Marks)
Ans Break-even analysis helps the entrepreneur in the following ways:-

1. It helps in setting profit goals & sales targets.
2. It helps in determining the products that are not contributing to meet the fixed expenses.
3. It is a useful technique for determining how many units must be sold or how much sales volume must be
achieved in order to break–even.
4. It helps to indicate the volume of sales needed to cover total variable and fixed expenses by the new
enterprise.
(Any two points)
Q6. State any four parameters that suggest that an entrepreneur should choose company form of an
organisation. (2 Marks)
Ans The parameters that an entrepreneur should consider whilst choosing company form of business
organisation:
1. Venture is a heavy and basic industry type.
2. Large-scale operations are involved.
3. Business requires huge funds.
4. Enterprise involves heavy risks.
5. Enterprise is technologically complex and sophisticated, banking heavily upon experts and professionals.
(Any four points)
Q7. ‘An entrepreneur must pay adequate and proper attention to human resource planning as it helps in
assessing the kind of people required’. Explain. (2 Marks)
Ans Human resource planning is a process by which an entrepreneur ensures that he/she has the right
number of people, and the right kind of people with appropriate skills, at the right place and the right time
to do work for which they are economically most suitable.
The most basic thing the entrepreneur must clearly state:
a. What kind of person is required to be hired for getting the work done.
b. As each person would have a different position, duty and responsibility, it becomes imperative for the
entrepreneur to clearly workout with a wide range of personnel ranging from managers, supervisors,
administrators, engineers, technical, skilled and unskilled class.
c. Nature of business activity helps entrepreneurs to a large extent in deciding the type of manpower
required.
Q8. Explain ‘identify the target market’ as a step in preparing the marketing plan. (2 Marks)
Ans Identify the target market:

This identification of the “target market” involves:
a. Deciding what the general market or industry the entrepreneur wishes to pursue is based on market
research or industry analysis done and complied with by competent people or the entrepreneurs.
b. Divide the market into smaller groups based on:
i. Consumer characteristics viz.
● Geographic (State, Country, etc.)
● Demographic (Sex, age, etc.)
● Psychographics (Personality, lifestyle, etc.)
ii. Buying situations viz
● Buying conditions (Time available etc.)
● Usage
● Desired benefits (Feature of product)
c. Select segment or segments to target
d. Develop a marketing plan integrating according to product, price, distribution, and promotion.
Q9. 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.
(3 Marks)
Ans a. The type of business organisation is Partnership

b. Features:
i. ‘Each of them contributed ₹2 Lakh towards the capital and decided to share the profits equally’ - Profit
Sharing in partnership is decided by the partners and in this case, they have decided to share it equally.
ii. ‘Each one of them will be the principal as well as the agent of each other’ - Mutual Agency means that
each partner is liable for acts performed by other partners.
iii.‘.........any of them can act on behalf of all of them.’- Implied Authority- There is an implied authority that
any partner can act on behalf of the firm. The firm stands bound by the acts of partners.
iv. ‘Nandini, Dorje, and Shizu formed an organisation for doing the business of pickle manufacturing using
these chilies.’ - Agreement - The relation of partnership arises from contract and not from status. Though
oral agreement is even acceptable but in practice written agreement is much more advisable as disputes
can be resolved better with it.
(Any two features)
Q10. Give the meaning of a Business Plan. Explain the formats in which a business plan can be presented.
(5 Marks)
Ans The business plan is a comprehensively written down document prepared by the entrepreneur
describing formally all the relevant external and internal elements involved in starting a new venture.
Formats of Business Plan:
i) Elevator pitch: It is a three-minute summary of the business plan's executive summary. This is often used
initially to awaken the interest of potential funders, customers, or strategic partners.
ii) A pitch deck with oral narrative: A hopeful, entertaining slide show and oral narrative that is meant to
trigger discussion and interest potential investors in reading the written presentation.
iii) A written presentation for external stakeholders: A detailed, well-written, and pleasingly formatted
plan targeted at external stakeholders.
iv) An internal operational plan: A detailed plan describing planning details that are needed by
management but may not be of interest to external stakeholders.
Q11. 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. (5 Marks)
Ans (a) Private Company

(b) Privileges of private company over public company
1) Only two members are required to form a private company.
2) Only two directors are required to constitute the quorum to validate the proceedings of the meetings.
3) Such a company is not required to file a prospectus or a statement in lieu of a prospectus with the
Registrar of Companies.
4) It can commence its business immediately after incorporation.
5) Holding of a statutory meeting or filing of a statutory report is required by a private company.
6) A non-member cannot inspect the copies of the profit and loss A/c filed with the Registrar.
7) Limit on payment of maximum managerial remuneration does not apply to a private company.
8) Restrictions on appointment and reappointment of managing director do not apply.
9) Maintaining an index of members is not required by a private company.
10) Directors of the private company need not have qualification shares.
(Any four privileges)
CBSE 2022-23 All India Paper
Q1. 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: (1 Mark)
a. Sole proprietorship
b. Partnership firm
c. Private company
d. Public company
Ans (a) Sole proprietorship
Q2. Break-Even Point is the level where: (1 Mark)

a. The revenue generated is equal to all the expenses required for generating the revenue.
b. The revenue generated is less than all the expenses required for generating the revenue.
c. The revenue generated is more than all the expenses required for generating the revenue.
d. Both (a) and (b)
Ans (a) The revenue generated is equal to all the expenses required for generating the revenue.
Q3. Give the meaning of ‘Implied Authority’ and ‘Mutual Agency’ as characteristics of a partnership form of
business organization. (2 Marks)
Ans Implied authority: Any partner can act on behalf of the firm. Firm stands bound by the act. There is an
implied authority that any partner can act on behalf of the firm. The firm stands bound by the acts of
partners.
Mutual Agency: Business can be carried out by any one partner for all, or all acting for one. The business of
partnership can be carried on by all the partners or any one of them acting for all. Thus, every partner is
principal as well as agent of other partners and of the firm. Thus, (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.
Q4. State any two characteristics of partnership which overcome the inherent limitations of sole
proprietorship form of business organisation. (2 Marks)
Ans Characteristics of partnership which overcome the limitation of sole proprietorship.

a) More capital: The capital contributed by the partners can be comparatively more than the capital
invested by a sole proprietor.
b) Increased managerial ability: ‘Two heads are better than one’. Decision making in a partnership is
balanced as the partners generally discuss amongst themselves before they arrive at a decision.
c) Continuity: Death, retirement, insolvency of one partner may not impact the continuity of the firm if the
remaining partners decide on continuing with the firm.
d) Sharing of loss: When there are partners, the loss amongst all may be shared.
(Any two points)
Q5. Explain ‘SWOT analysis’ as a step in preparing a marketing plan. (2 Marks)
Ans SWOT ANALYSIS

It is important for the entrepreneur to consider the 'target market' of his/her enterprise's:
a) Strength - of the organization. It identifies the products or services it can produce with the available
resources effectively.
b) Weakness- of the organization. It tries to find out the area where the organization may face challenges
or have difficulty.
c) Opportunities- that exist in the external business environment
d) Threats - that are posed by different external factors / macro elements of the business environment.
Q6. ‘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. (2 Marks)
Ans Importance of the business plan

(a) Needs to consider the strength and weakness of the new venture to ensure its success.
(b) helps in determining the viability of the venture in a designated market
(c) helps in providing guidance to the entrepreneur in organizing his/her planning activities as such:
(d) helps in satisfying the concerns, queries, and issues of each group of people interested in the venture.
e) provides room for self-assessment and self-evaluation,
f) helps to realize the obstacles which cannot be avoided or overcome, suggesting to terminate the venture
while still on paper without investing further time and money.
g) business plan which reflects the entrepreneur's credit history, the ability to meet debt and interest
payments, and the amount of personal equity invested thus serving as an important tool in funds
procurement.
(Any two points of importance of Business Plan)
Q7. 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. (3 Marks)
Ans (a) Operational Plan

Where the production plan aims at "plan your work", there operations plan ensures "work your plan". It is
actually a blue
print prepared right in advance of actual operations —
(b)
ii) Facilitating continuous production, lesser work-in-progress and minimization of wastage.
iii) Co–ordinating the work of engineering, purchasing, production, selling and inventory management.
(Any Two)
Q8. 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, customer’s 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. (5 Marks)
Ans (a)Meaning of Business Plan: The business plan is a comprehensively written down document
prepared by the entrepreneur describing formally all the relevant external and internal elements involved
in starting a new venture.
Format of business plan used by Rajat – Elevator Pitch
(b) Three formats of business plan other than the one identified above
(i) Pitch deck with oral narrative - A hopeful, entertaining slide show and oral narrative that is meant to
trigger discussion and interest potential investors in reading the written presentation, i.e. the executive
summary and a few key graphs showing financial trends and key decision making benchmark.
(ii) Written presentation - A detailed, well written, and pleasingly formatted plan targeted at external
stakeholders.
(iii) Internal operational plan or service - A detailed plan describing planning details that are needed by
Q1. 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. (1 Mark)
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
a. i only
b. i and ii only
c. i and iii only
d. i, ii, and iii only
Ans b. i and ii only
Q2. State any two characteristics of partnership form of business organization. (2 Marks)
Ans 1. Two or more persons;

2. Agreement;
3. Profit sharing;
4. Unlimited liability;
5. Implied authority;
6. Mutual agency;
7. Utmost good faith;
8. Restriction on transfer of shares;
9. Continuity
(Any two in detail)
Q3. Why is a private company more desirable than a public company. Give any two reasons. (2 Marks)
Ans 1) Only two members are required to form a private company.

3) Such companies can file a statement in lieu of a prospectus with the Registrar of Companies.
(Any two points)
Q4. What does the manpower plan help to assess? (3 Marks)
Ans The manpower plan helps to assess three things.

1. What kind of people are required?
Each organisation needs personnel with the necessary qualifications, skills, knowledge, experience and
aptitude for work. The entrepreneur must clearly state: (a) what kind/type of person is required to be
hired for getting his work done. (b) State the personnel ranging from managers, supervisors,
administrators, engineers, technical, skilled and unskilled class. (c) Nature of business activity which will
help in deciding the type of manpower required.
2) How many people are required?
This question deals with the quantity of personnel the enterprise needs. The number of people required
for various positions throughout the enterprise gets affected by: a) The total work to be done. b) How
much work can an average person do in a specified period of time. c) Level of absenteeism expected. d)
Rate of labour turnover. e) The present number of employees. f) The future plans for expansion and
diversification.
3) How to procure personnel?
As the next step in manpower planning, entrepreneur clearly mentions the strategies, methods, policies,
rules and regulations pertaining to persons with respect to Recruitment, Selection and Training.
Q5. Explain the first three steps involved in preparing the marketing plan. (3 Marks)
Ans 1) Business situation analysis - A review of past performance and achievements of the enterprise are
stated here in but for a new venture, focus shifts rather towards: a) Personal profile of the entrepreneur b)
Emphasis on products development c) What 'need' it satisfies d) Any other enterprise/experience of the
entrepreneur e) Any marketing segmentation, if planned.
2) Identify the target market - For a new venture, it's very essential to clearly define the specific group of
potential customers whose needs the enterprise aims to fulfill. This identification of the "target market" is
a pretty tedious task as it involves: a) Deciding what the general market or industry entrepreneur wishes to
pursue is based on market research or industry analysis done and complied with by competent people or
the entrepreneurs. Divide the market into smaller groups based on: i) Consumer's characteristics viz.
Geographic (State, Country etc.) Demographic (Sex, age, etc.) Psychographics (Personality, lifestyle, etc.) ii)
Buying situations viz. Buying conditions (time available etc.) Usage Desired benefits (features of product) c)
Select segment or segments to target. d) Develop a marketing plan integrating according to product, price,
distribution, promotion.
3) Conduct SWOT analysis- It is important for the entrepreneur to consider in the 'target market' his/her
enterprise's: a) Strengths b) Weaknesses c) Opportunities d) Threats. Marketing plan needs to consider the
strengths and weaknesses of the new venture to ensure its success.
Q6. The entrepreneur should develop a sound financial plan as timely availability of funds in the right
volume is key to entrepreneurial success. In the light of the given statement, examine the relevance of a
financial plan for an entrepreneur. (3 Marks)
Ans Availability of finance facilitates the entrepreneur to bring together men, material, machines and
methods to produce goods/services.
The financial plan should be able to meet all financial obligations and the company should maintain its
liquidity in order to pay off the debts and also provide good returns on the investment made.
Financial plan must project: a) The potential investment commitment needed for the new venture, and b)
Economic feasibility of the enterprise The entrepreneur uses various financial projection techniques and
tools to draft the financial plan. The entrepreneur will need to present three years of projected financial
data to satisfy any outside investors.
Q7. What is the need for a business plan? Elaborate on various formats in presenting a business plan to
prospective investors? (5 Marks)
Ans It helps the entrepreneur to frame a formal statement enlisting a set of business goals, the reasons as
to why they believe that it is attainable and the plan for reaching those goals along with the background
information about the organization or/and team attempting to reach those goals.
Formats of business plan:
i)Elevator pitch: It is a three-minute summary of the business plan's executive summary. This is often used
as a teaser to awaken the interest of potential funders, customers, or strategic partners.
trigger discussion and interest potential investors in reading the written presentation, i.e., the executive
summary and a few key graphs showing financial trends and key decision-making benchmark.
iii) A written presentation for external stakeholders: A detailed, well written, and pleasingly formatted
Q8. 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. (5 Marks)
Ans Aarushi had joined the Operations Department and Kumar was explaining to her about the elements
involved in the operational plan. The following are the first five elements involved in the plan:
1) Routing: It is a process concerned with determining the exact route or path a product/ service has to
follow right from raw material till its transformation into finished product.
2) Scheduling: It means fixation of time, day, date when each operation is to be commenced and
completed.
3) Dispatching: The process of initiating production in accordance with a pre-conceived production plan is
said to be dispatching. This includes issuing necessary orders, instructions, guidelines and/or information
to work pertaining to giving practical shape to the production plan.
4) Follow-Up: This element relates to evaluation and appraisal of work performed. A properly planned
follow-up procedure is helpful in dispatching errors and defects in the work.
5) Inspection: It is the art of comparing materials, product or performance with established standards. This
element helps the entrepreneur to set up laboratories or evolve strategies/methods to ensure
predetermined quality of product/service.
Q1. "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. (1 Mark)
a. Private company
b. Sole proprietor
c. Partnership
d. Public company
Ans b. Sole proprietor
Q2. Partnership form of organisation was developed due to the inherent limitations of sole proprietorship.
One of them is limited capital, identify the other two? (1 Mark)
a. Limited managerial ability, limited continuity
b. Limited continuity, unlimited liability
c. Limited managerial ability, unlimited liability
d. Lack of secrecy, limited continuity
Ans a. Limited managerial ability, limited continuity
Q3. _______________ section of the business plan generally begins with the "mission statement" by the
entrepreneur describing the size, scope and nature of the enterprise. (1 Mark)
a. Description of business Venture
b. Introductory profile
c. Industry profile
d. Entrepreneur’s biodata
Ans a. Description of business Venture
Q4. A Company is called an artificial person because ____. (1 Mark)

a. it does not have the shape of a natural person.
b. it cannot be sued in the court of law.
c. it is invisible and intangible.
d. it exists in the eyes of law.
Ans d. it exists in the eyes of law.
Q5. Which of the following formats of business plan is not targeted towards the external stakeholder? (1
Mark)
a. Elevator pitch
b. A pitch deck with oral narrative
c. A written presentation for external stakeholders
d. An internal operational plan
Ans d. An internal operational plan
Q6. What is the minimum number of members required to start a public company? (1 Mark)
a. 2
b. 5
c. 7
d. 50
Ans c. 7
Q7. A company generally affixes a ………….in most of its documents. (1 Mark)

a. Common signature
b. Common Seal
c. Common affixture
d. Common annexure
Ans b. Common Seal
Q8. (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? (1 Mark)
a. Implied authority
b. Utmost good faith
c. Mutual Agency
d. Agreement
Ans c. Mutual Agency
Q9. 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 organisation is operated by him? (1 Mark)
b. Partnership
c. Private company
d. Public company
Ans a. Sole proprietorship
Q10. As per law, a business and owner are one and same in case of sole proprietorship. What characteristic
does this imply? (1 Mark)
a. No separate legal entity
b. Separate legal entity
c. Legal entity
d. Legal equity
Ans a. No separate legal entity
Q11. What is the minimum paid up capital required to start a private ltd Company? (1 Mark)
a. Rs.1,00,000
b. Rs.10,00,000
c. Rs.5,00,000
d. Rs.50,00,000
Ans a. Rs.1,00,000
Q12. __________ component of a financial plan helps to ascertain the highest possible returns on
investment. (1 Mark)
a. Proforma investment decision
b. Proforma income statement
c. Proforma cash flow
d. Proforma balance sheet
Ans a. Proforma investment decision
Q13. Which form of business organisation can commence business immediately after incorporation? (1
Mark)
a. Public company
b. Private company
c. Partnership
d. Sole proprietorship
Ans b. Private company
Q14. Sara had established a homemade papad business in Pune. Papads made by her were very popular in
her locality but being the sole owner and manager of business, she could neither introduce many flavours
because of limited financial resources. Which of the following characteristic of her business, does this
situation imply? (1 Mark)
a. Individual management and control
b. Easy formation and closure
c. Limited area of operation
d. Unlimited liability
Ans c. Limited area of operation
Q15. Which of the following feature applies ONLY to a public company? (1 Mark)
a. Can Start business after incorporation
b. Has a restriction up to 200 members
c. Can invite public to subscribe for its shares
d. Directors are not required to obtain qualification shares.
Ans c. Can invite public to subscribe for its shares
Q16. Which statement is NOT correct about the company form of business organisation? (1 Mark)
a. Company form of business organisation can be incorporated with a minimum of two members.
b. Company has an access to huge capital resources
c. Company is a legal person
d. Company has a separate legal entity.
Ans a. Company form of business organisation can be incorporated with a minimum of two members.
Q17. The scope of the company form of organisation is determined by (1 Mark)

1. The Companies Act 2013
2. Memorandum of Association
3. Articles of Association
a. Only 1
b. Both 1,2
c. Only 2
d. All 1,2,3
Ans d. All 1,2,3

Q18. 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. (1 Mark)
a. Marketing Plan
b. Financial Plan
c. Manpower Plan
d. Organisational Plan
Ans c. Manpower Plan
Q19. 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. (1 Mark)
a. Partnership
b. Public Company
c. Private Company
d. Company
Ans c. Private Company
Q20. Assertion (A): A company which is suffering huge losses can be shut down only by following the
procedures laid down in Companies Act.
Reason (R): A company can be born as well as liquidated only by law. (1 Mark)
a. A is true but R is false.
b. Both A and R are true, but R is not the correct explanation of A
c. A is true and R is the correct explanation of A
d. Both A and R are false.
Ans c. A is true and R is the correct explanation of A
Q21. Match the following (1 Mark)
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.
a. 1 - iii, 2 - iv, 3 - ii, 4 - i

b. 1 - iii, 2 - ii, 3 - iv, 4 - i
c. 1 - ii, 2 - iii, 3 - i, 4 - iv
d. 1 - iv, 2 - iii, 3 - ii, 4 – i
Ans a. 1 - iii, 2 - iv, 3 - ii, 4 – i

Q22. Calculation of Breakeven Point is useful for the entrepreneur as it helps in assessing: (1 Mark)
a. The maximum level of output to be produced.
b. The effect of change in quantity of input upon the production.
c. The cost price of the product.
d. The profitable options in line of production.
Ans d. The profitable options in line of production.
Q23. Match the following (1 Mark)
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.
a. 1 - iii, 2 - iv, 3 - ii, 4 - i

b. 1 - iii, 2 - ii, 3 - iv, 4 - i
c. 1 - ii, 2 - iii, 3 - i, 4 - iv
d. 1 - iv, 2 - iii, 3 - ii, 4 - i
Ans a. 1 - iii, 2 - iv, 3 - ii, 4 – i
Q24. 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? (1 Mark)
a. Agreement
b. Unlimited liability
c. Profit sharing
d. Utmost good faith
Ans c. Profit sharing
Q25. 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. (1 Mark)
a. Elevator pitch
b. A pitch deck with oral narrative
c. A written presentation for external stakeholders
d. An internal operational plan
Ans c. A written presentation for external stakeholders
Q26. 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? (1 Mark)
a. No manufacturing involved
b. Partial manufacturing
c. Complete manufacturing
d. Complete outsourcing
Ans b. Partial manufacturing
Q27. Sankalp Singh Parihar cultivates the world’s most expensive Miyazaki variety of mangoes at his farm
in Dhedagoua village in Madhya Pradesh. The Miyazaki variety of mangoes he grows at his farm sell at Rs
2.5 lakh per kg in Japan. In India he got a price of Rs 21000 per kg, but he is yet to launch sales and is
focusing on propagating the variety now. He intends to plant more saplings and make the mangoes
affordable for Indians and sell it for as little as Rs 2000 per kg. He plans in such a manner that economic
feasibility can be achieved in a few years. Which part of the business plan highlights economic feasibility?
(1 Mark)
a. Organisational plan
b. Financial plan
c. Operational plan
d. Marketing plan
Ans b. Financial plan
Q28. Rajan, son of a humble soldier of the Indian army, did not have the resources to prepare for a medical
entrance exam, but decided to launch a venture that would help others achieve their dreams. His startup,
launched in July 2020 with zero investment, has clocked a turnover of Rs 35 lakh in just 10 months and he
has achieved it all as a one-man army. The start up prepares Group C employees of the Department of Post
for the Limited Departmental Competitive Exams (LDCE) that qualifies them for their next promotion in the
department. He realised that there was no training centre or coaching class for the aspirants so he
marketed his classes for this specific group. Which step is involved in this marketing plan? (1 Mark)
a. Identify the target market
b. Conduct SWOT analysis
c. Establish goals
d. Define marketing strategy
Ans a. Identify the target market
Q29. Sindhuja was extremely good at making traditional sweets which she had learnt from her
grandmother. She decided to start selling the sweets through advertising in social media. Her business
picked up and she got a lot of orders from clients all across India. Seeing her huge success, her friend
Raman advised that she should open a shop in the market area to expand her business. He expressed
interest in the business and was ready to invest money so that they could do the business together. What
form of business organisation does Raman and Sindhuja start? (1 Mark)
b. Partnership
c. Private company
d. Public company
Ans b. Partnership
Q1. 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? (1 Mark)
A. Lawyers
B. Accountants
C. Marketing consultants
D. All of the above
Ans D. All of the above
Q2. 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? (1 Mark)
A. Elevator Pitch
B. A pitch deck with oral narrative
C. A written presentation for external stakeholders
D. An internal operational plan
Ans A. Elevator Pitch
Q3. 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 power point presentation showing key graphs of financial
trends. It was meant to trigger discussion among the members. Which format of business plan is Sharath
using? (1 Mark)
A. Elevator Pitch
B. A pitch deck with oral narrative
C. A written presentation for external stakeholders
D. An internal operational plan
Ans B. A pitch deck with oral narrative
Q4. 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? (1 Mark)
A. No, they cannot form a partnership firm since all of them are minors
B. Yes, they can form a partnership firm
C. No, since minimum number of people required to form a partnership is 10
D. None of the above
Ans A. No, they cannot form a partnership firm since all of them are minors
Q5. Enlist two points as to why a private company is more desirable than a public company. (2 Marks)
Ans A substantial number of entrepreneurs prefer to form a private company because of the following
important privileges:
3) Such a company is not required to file a prospectus or a statement in lieu of prospectus with the
Registrar of Companies.
(Any two points)
Q6. Source based question (Source - Entrepreneur magazine - August, 2020)

‘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. That’s because the pandemic has not only affected our present but also our future.’
Keeping in mind this article, state any two things which should be written by startup companies in their
manpower planning component of business plan? (2 Marks)
Ans Manpower planning helps in assessing:

a. what kind of people are required- Every organisation needs the right person with the right
qualifications, skills, experience and aptitude to work. So, the organisation should be clear to know as to
what kind of personnel is required as per the nature of business activity
b. How many people are required- They should also estimate the number of personnel required keeping in
mind the total work and survival in the present situation and planning for future growth.
c. How to procure personnel - The next step is to recruit, select and train the right personnel.
(Any two points)
Q7. 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. (3 Marks)
Ans Steps involved in marketing plan are:

1) Business situation analysis:
'Where we have been?' – is the question responded to as the first step in designing the marketing plan.
I have completed my MBA from a reputed institute in India.
I have experience in this field for 10 years and I have been quite successful and completely understand the
needs of the customers.
2) Identify the target market:
For a new venture, it's very essential to define clearly the specific group of potential customers whose
needs the enterprise aims to fulfill.
The target market in this case are teenagers.
3) Conduct SWOT analysis:
It is important for the entrepreneur to consider in the 'target market' his/her enterprise's: a) Strengths b)
Weaknesses c) Threats d) Opportunities
Strengths: I am already in the field of fastmoving consumer goods which gives me knowledge about
various aspects
Weakness: I might not be able to concoct the right combination to satisfy the needs of the customer.
Threats: There is lot of competition already in the market
Opportunities: There is market for chocolates in the country
Q8. Explain any three characteristics of partnership. (3 Marks)
Ans Characteristics of partnership:

1) Two or more persons: Partnership is the outcome of a contract. Thus: a) There must be at least 2
persons to enter into contract to form partnership. b) Minors cannot form a partnership firm as they are
incompetent to enter into contract but can be admitted to the benefits of a running firm. c) If these people
intend to do banking business, the maximum number can be ten otherwise twenty for the other business.
2) Agreement: The relation of partnership arises from contract and not from status. Though oral
agreement is even acceptable but in practice written agreement is much more advisable as disputes can be
resolved better with it.
3) Profit sharing: The objective of the business is to make profits and distribute the same amongst
partners. Any association initiated to do charity work is not partnership.
4) Unlimited liability: Mostly, the liability of the partners of a firm is unlimited. Their personal properties
can be disposed off to pay the debts of the firm if required. The creditors can claim their dues from any
one of the partners or from all of them, meaning partners are liable: Individually and Collectively
5) Implied authority: There is an implied authority that any partner can act on behalf of the firm. The firm
stands bound by the acts of partners.
6) Mutual agency: The business of partnership can be carried on by all the partners or any one of them
acting for all. Thus, every partner is principal as well as agent of other partners and of the firm. Thus, (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.
7) Utmost good faith: Every partner is supposed to act honestly and give proper accounts to other
partners. Thus, mutual faith and confidence in one another is the main strength of partnership.
8) Restriction on transfer of shares: No partner can sell or transfer his share to anybody else without the
consent of the other partners. By giving a notice for dissolution of the firm, a partner can show intention to
discontinue as partner.
9) Continuity: A partnership continues up to the time that all partners desire to continue it. Legally, a firm
dissolve on the retirement, death, bankruptcy lunacy, or disability of a partner if not otherwise provided
for in the partnership deed.
Q9. Explain any three characteristics of sole proprietorship. (3 Marks)
Ans 1) Individual ownership: This business is exclusively owned by a single person.

2) Individual management and control: All affairs are managed and controlled by the sole proprietor.
3) Individual financing: All investment is made by the proprietor. Though, if required he/she has access to
loans and debts to procure funds for business.
4) No separate legal entity: Legally, the proprietor and proprietorship are one and the same business and
owner exists together, thus with owner's death, business too dies.
5) Unlimited liability: The proprietor is liable/responsible for all losses arising from business. In case the
business assets are insufficient to pay off liabilities, his/her personal property can be called upon to pay his
business debts.
6) Sole beneficiary: The sole proprietor alone is entitled to all the profits and losses of business. So, he puts
his heart and soul to increase his profits.
7) Easy formation and closure: Sole proprietorship are subjected to minimum legal formalities and
regulations both at time of commencing and/or closing.
8) Limited area of operation: This form of business generally has a limited area of operation due to: limited
finance availability limited managerial abilities
(Any three points)
Q10. Break even analysis has a major impact on the business decision making. Comment. (3 Marks)
Ans 1. It helps in setting profit goal and sales target.

2. In a manufacturing environment, it helps in determining the products that are not contributing to meet
the fixed expenses and thus brings up the item for discussion in management meetings about its
continuity.
3. Breakeven point is the level of sales (or revenue generated) that equals all the expenses required for
generating that revenue. There is neither loss nor profit. It helps the organisation to determine the level
when will it turn profitable.
Q11. 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. Explain the component of the business plan along with its related sub
part. (4 Marks)
Ans a. Production plan, partial manufacturing

Production, the most important activity of an enterprise, because it is here that transformation of raw
material into finished product takes place with the help of energy, capital, manpower and machinery.
Partial manufacturing: If some or all the manufacturing process is to be subcontracted or outsourced, then
the production plan should describe: i) Name and location of subcontractor(s) ii) Reasons for their selection
iii) Cost and time involved iv) Any contracts that have been completed etc. In such cases, a clear mention of
what the entrepreneur intends to do himself and what he plans to get it done from outside is required.
b. Financial plan, proforma financing decision
Financial plan is a projection of key financial data about: a) The potential investment commitment needed
for the new venture, and b) Economic feasibility of the enterprise
Proforma financing decisions: This section summarizes all the projected sources of funds available to the
venture to raise finance from, which you have already studied in previous class. Typically, sources of funds
are: i) owners i.e. Owner's funds ii) outsiders i.e. Borrowed funds. The entrepreneur's job is to ensure the
selection of the best overall mix of financing for the enterprise so that:
a) the cost of capital and the financial risk stands minimized,
b) return on investment and profitability stands maximized.
Q12. This document is valuable to the entrepreneur, potential investors, venture capitalists, banks,
financial institutions, new personnel's 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. (4 Marks)
Ans Importance of business plan:

1) It helps in determining the viability of the venture in a designated market
2) It helps in providing guidance to the entrepreneur in organizing his/or her planning activities as such: i)
identifying the resources required ii) enabling obtaining of licenses if required etc. iii) working out with
legal requirements as desired by the government.
3) It helps in satisfying the concerns, queries, and issues of each group of people interested in the venture.
4) It provides room for self-assessment and self-evaluation, requiring entrepreneur to think through
various scenarios and plan ways to avoid obstacles.
5) It helps to realize the obstacles which cannot be avoided or overcome.
6) As the investors/lenders focus on the four Cs of credit : character, cash flow, collateral and equity
contribution, it is the business plan which reflects the entrepreneur's credit history, the ability to meet
debt and interest payments, and the amount of personal equity invested thus serving as an important tool
in funds procurement.
Q13. Explain any six characteristics of company. (6 Marks)
Ans Characteristics of a Company:

1) Voluntary association: A single person cannot constitute a company. At least two persons, voluntarily,
must join hands to form a private company, while a minimum of seven persons are required for a public
company.
2) Artificial person: A company is created by law. Though it has no body, no conscience still it exists as a
person, having a distinct personality of its own.
3) Separate legal entity: A company has an independent status, different from its members.
4) Common seal: Being an artificial person, a company cannot sign the documents. Hence, it uses a
common seal on which its name is engraved.
5) Limited liability: The liability of the shareholders of a company is normally limited to the number of
shares held or guarantee given by them.
6) Transferability of shares: No shareholder is forever wedded to the company. Subject to certain
conditions, the shares are freely transferable. The private companies do impose some restrictions on the
transfer of shares.
7) Diffusion of ownership and management: In this form of organisation, entrepreneur should clearly
understand there exists separation of ownership from management.
8) Number of members: In case of a private company: – Minimum members required are: Two Maximum
members: Fifty (excluding employees) And for a public company: – Minimum requirement is: Seven
Maximum number: No Limit
9) Limitation of action: The scope of this artificial person is determined by: a) The Indian Companies Act b)
Memorandum of Association c) Articles of Association
10) Winding up: The mode of incorporation and termination (winding up) is both as per the Companies Act
only. It's born out of law and can be liquidated only by law. (Any six characteristics)
Q1. 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. (1 Mark)
Q2. 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. (1 Mark)
Q3. 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 __________. (1 Mark)
Q4. All businesses guarantee for the return of either principal amount invested in the business or profit.
True or False (1 Mark)
Q5. Mutual agency as a characteristic of partnership states that each partner in liable for the acts
performed by the other partners. True or False (1 Mark)
Q6. TAN is a: (1 Mark)

(A) 10-digit Alpha number
(B) 5-digit numeric number
(C) 10-digit Alphanumeric number
(D) 10-digit numeric number
Q7. The maximum number of members in a private company can be: (1 Mark)
(A) 50
(B) 100
(C) 200
(D) No limit
Q8. 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. (2 Marks)
Q9. 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, be 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. (2 Marks)
Q10. 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. (3 Marks)
Q11. Explain any six characteristics of a sole proprietor. (3 Marks)
Q12. Explain any six essential characteristics of business. (6 Marks)
Q13. Explain any four components of a financial plan. (6 Marks)

CBSE 2019-20 Delhi Paper
Q1. 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 ____________________.
(1 Mark)
Ans Market research
Q2. ________________ feature of partnership states that any partner can act on behalf of the firm.
(1 Mark)
Ans Implied Authority
Q3. A financial plan is a projection of key financial data about the potential investment commitment
needed for the new venture. True or False (1 Mark)
Ans True
Q4. SWOT Analysis means to consider (a) Strengths (b) Weakness (c) Opportunities and (d) Tenure of
Business. True or False (1 Mark)
Ans False
Q5. Marketing plan is a document: (1 Mark)

(a) regarding the marketing objectives, strategies and activities to be followed by the new Enterprise.
(b) which describes the flow of goods/services from production point to the customers.
(c) which determines how many units must be sold or how much sales volume must be achieved in order
to have break-even-point.
(d) which reflects the projected cash available with the Enterprise
Ans (a) regarding the marketing objectives, strategies and activities to be followed by the new Enterprise.
Q6. Sanjana graduated from National Institute of Fashion Studies and wants to start her own boutique. She
wants to understand the feasibilities 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. (2 Marks)
Ans Business Plan

The business plan is a comprehensively written down document prepared by the entrepreneur describing
formally all the relevant external and internal elements involved in starting a new venture.
Q7. 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. (2 Marks)
Ans Production Plan.
Complete Manufacturing: If the manufacturing is to be carried out in whole by the entrepreneur, he/she
iv) cost of manufacturing,
Q8. Explain proforma investment decisions and proforma financing decisions as components of a financial
plan. (3 Marks)
Ans Proforma investment decisions: It relates to how the enterprise's funds are invested in different
assets so that the enterprise is able to earn the highest possible returns on investment. The entrepreneur
should mention investment required for:
i) Land and building
ii) Machinery and plant
iii) Installation cost
iv) Preliminary expenses
v) Margin for working capital
vi) Expenses on research and development
vii) Investment in short-term assets viz. raw material, level of cash, etc.
Proforma financing decisions: It tells all the projected sources of funds available to the venture to raise
finance from debt and equity after ensuring that the cost of capital and the financial risk stands minimized
and return on investment and profitability stands maximized.
Q9. While preparing an operational plan, an entrepreneur has to pay attention towards various elements.
Explain these elements. (6 Marks)
Ans Elements of operational plan:

1) Routing: It 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.
2) Scheduling: It means fixation of time, day, date when each operation is to be commenced and
completed. In general, it is determination of the time that should be required to perform each operation.
3) Dispatching: The process of initiating production in accordance with pre-conceived production plan is
said to be dispatching.
4) Follow-Up: It relates to evaluation and appraisal of work performed. A properly planned follow-up
procedure is helpful in dispatching errors and defects in the work.
5) Inspection: It is the art of comparing materials, product or performance with established standards. This
element helps the entrepreneur to set up laboratories or evolve strategies/methods to ensure
predetermined quality of product/service.
6) Shipping: It describes the flow of goods/ services from production to the consumers.
Q1. 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 ____________. (1 Mark)
Ans Organisational Plan
Q2. 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. (2 Marks)
Ans 1. Utilities: These include: power, fuel, water, gas, electricity, etc. Business plan needs to clearly state:
(a) type of utilities required, (b) load sanctioned (c) sources and quality of water used quantum of coal,
coke, oil etc. required and the suppliers of the same.
2. Production process: A mention of the process involved in production, the installed licensed capacity of
the plant, the technology to be used, whether available locally or imported, shifts involved, needs to be
present in the business plan.
Q3. 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. (2 Marks)
Ans Identification of the element given in the statement of the question - Inspection
(Any one of the following elements)
a. Routing – it is a process concerned with determining the exact route from raw material to finished
product.
b. Scheduling – it means fixing the time, day, date when the operation has to be commenced and
completed.
c. Dispatching – this is the process of initiating production with preconceived production plan.
d. Follow up – it relates to evaluation and appraisal of work performed.
e. Shipping – this gives the chronological steps involved in completing the business transaction efficiently
and profitably.
Q4. 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. (3 Marks)
Ans Any three product details from the following with statement based on the information given in the
question:
1. Product utility
2. Product Range
3. Product design
4. USP of the product
Q5. Why is a business plan valuable for an entrepreneur? Explain with the help of any four points. (4
Marks)
Ans The importance of business plan is as follows–

1. Helps in determining the viability of the venture in a designated market.
2. Helps in providing guidance to the entrepreneur in organizing his/her planning activities such as: i)
identifying the resources required ii) enabling obtaining of licenses if required etc. iii) working out with
legal requirements as desired by the government.
3. Helps in satisfying the concerns, queries, and issues of each group of people interested in the venture.
4. Provides room for self-assessment and self-evaluation, requiring entrepreneur to think through various
5. Business plan helps to realize the obstacles which cannot be avoided or overcome, suggesting to
terminate the venture while still on paper without investing further time and money.
6. Business plan reflects the entrepreneur's credit history, the ability to meet debt and interest payments,
and the amount of personal equity invested thus serving as an important tool in funds procurement.
(Any four points)
Q6. Explain any six components of a financial plan. (6 Marks)
Ans A) Proforma investment decisions: This part of financial plan relates to how the enterprise's funds are
invested in different assets so that the enterprise is able to earn the highest possible returns on
investment. The entrepreneur should mention investment required in for: i) Land and building ii)
Machinery and plant iii) Installation cost iv) Preliminary expenses v) Margin for working capital vi) Expenses
on research and development vii) Investment in short-term assets viz. raw material, level of cash, etc. This
part helps to understand the total amount of finance required by the entrepreneur. Inadequate funds or
excess funds, both have the capacity to severely damage the financial fortune of a business. Therefore,
these decisions must be taken with utmost care.
B) Proforma financing decisions: This section summarizes all the projected sources of funds available to
the venture to raise finance. Typically, sources of funds are: i) owners i.e. Owner's funds ii) outsiders i.e.
Borrowed funds The entrepreneur's job is to ensure the selection of the best overall mix of financing for
the enterprise so that: a) the cost of capital and the financial risk stands minimized, b) return on
investment and profitability stands maximized.
C) Proforma income statement: The proforma income statement is the projected net profit calculated
from projected revenue minus projected costs and expenses. Basically, it summarizes all the profit data
during the first year of operations of the new enterprises.
D) Proforma cash flow: Profit and cash flow are not the same, Proforma cash flow reflects the projected
cash available with the enterprise as a result of subtracting projected cash disbursements from projected
cash accumulations. Cash flows only when actual payments are received or made. Mere sale which might
be on credit, will not generate cash.
E) Proforma balance sheet: This document helps the enterprise to reflect the position of the business at
the end of its first year. A summary of the projected assets, liabilities and net worth of the entrepreneur is
depicted through proforma balance sheet.
F) Break–even point: Every firm wants to maximise its profits. The Breakeven point is that level of volume
of production at which firm neither makes a profit nor a loss.
G) Economic and social variables: In view of the social responsibility of business, the abatement costs, i.e.
the cost of controlling the environmental damage should also be stated in the plan.
(Any six points)
Q7. In addition to ‘number of persons’, ‘profit sharing’ and ‘agreement’, there are various other features of
partnership. Explain any six such features. (6 Marks)
Ans 1. Unlimited liability: Mostly, the liability of the partners of a firm is unlimited. Their personal
properties can be disposed off to pay the debts of the firm if required. The creditors can claim their dues
from any one of the partners or from all of them, meaning partners are liable:
• Individually
• Collectively
2. Implied authority: There is an implied authority that any partner can act on behalf of the firm. The firm
stands bound by the acts of partners.
3. Mutual agency: The business of partnership can be carried on by all the partners or any one of them
acting for all. Thus, every partner is principal as well as agent of other partners and of the firm. Thus, (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.
4. Utmost good faith: Every partner is supposed to act honestly and give proper accounts to other
partners. Thus, mutual faith and confidence in one another is the main strength of partnership.
5. Restriction on transfer of shares: No partner can sell or transfer his share to anybody else without the
consent of the other partners. By giving a notice for dissolution of the firm, a partner can show intention to
discontinue as partner.
6. Continuity: A partnership continues up to the time that all partners desire to continue it. Legally, a firm
dissolve on the retirement, death, bankruptcy lunacy, or disability of a partner if not otherwise provided
for in the partnership deed.
Q1. 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. (1 Mark)
Ans Elevator’s Pitch
Q2. 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 (1 Mark)
Ans True
Q3. 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. (2 Marks)
Ans The socio-economic benefits are:

1) Employment generation
2) Import substitution
3) Ancillarisation
4) Export promotion
5) Local resource utilization
6) Development of the area
(Any two)
Q4. An organisation will have to look into three situations while framing the production plan. Explain these
three situations. (3 Marks)
Ans The three situations involved in production plan are:

a. No manufacturing involved: If the new venture does not include any manufacturing function, say it’s a
b. Partial manufacturing: If some or all the manufacturing process is to be subcontracted or outsourced,
c. Complete Manufacturing: If the manufacturing is to be carried out in whole by the entrepreneur, he/she
Q5. Explain the various steps involved in preparing a marketing plan? (6 Marks)
Ans Marketing plan provides the organisation with guidelines with respect to marketing objectives,
strategies and activities to be followed. The various steps are:
a. Business situation analysis: If it is an existing enterprise then it’s past performance and achievements
are looked into it. If it is a new enterprise then aspects like personal profile of the entrepreneur, product
development, experience of the entrepreneur, the need the product satisfies and marketing segmentation
is looked into.
b. Identify the target market: For any new venture, it is very essential to define clearly the specific group
of potential customers whose needs the enterprise aims to fulfil.
c. Conduct SWOT analysis: The plan needs to consider the Strengths, Weakness, Opportunities and Threats
of the organisation to ensure success.
d. Establish goals: The enterprise needs to set realistic, attainable goals. They need to quantify the goals so
that they can be controlled and limit it to certain number.
e. Define marketing strategy: The strategy should comprise various decisions pertaining to the following
P’s: Product, Price, Promotion and Place f. Implementation and monitoring of the plan: It is important for
the entrepreneur to understand that this plan should be flexible and he should be prepared to make
necessary adjustments as and when required.
Q6. Explain are the various elements of an Operational plan? (6 Marks)
Ans a. Routing: 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.
b. Scheduling: It means fixation of time, day, date when each operation is to be commenced and
completed. It is the determination of the time that should be required to perform each operation.
c. Dispatching: The process of initiating production in accordance with pre-conceived production plan is
said to be dispatching. This includes issuing necessary orders instructions, guidelines and/or information to
work pertaining to giving practical shape to the production plan.
d. Follow-Up: This element relates to evaluation and appraisal of work performed. A properly planned
follow-up procedure is helpful in dispatching errors and defects in the work. Follow-up element helps the
entrepreneurs in:
a) Developing ways to review the present situation with regard to materials, work-in-progress and finished
goods.
b) Evolving ways to expedite the performance of those departments which lag behind.
c) Removing obstacles in the way of production by suggesting remedial measures.
e. Inspection: Inspection is the art of comparing materials, product or performance with established
standards. This element helps the entrepreneur to set up laboratories or evolve strategies/methods to
ensure predetermined quality of product/service.
f. Shipping: This element is a detailed presentation by the entrepreneur explaining the chronological steps
in completing a business transaction efficiently and profitably.
Q1. Why is ‘follow-up’ regarded as an important element of operational plan? (2 Marks)
Q2. Why is it said that operational plan ensures ‘work your plan’? (2 Marks)
Q3. 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. (3 Marks)
Q4. ‘‘A company is an artificial person with separate legal entity and common seal but with a limited scope
of action.’’ Explain. (4 Marks)
Q5. 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
Q1. Why is identifying the target market considered to be a tedious task? State any four reasons. (2 Marks)
Ans a) Deciding what the general market or industry entrepreneur wishes to pursue is based, on market
research or industry analysis done and complied with by competent people or the entrepreneurs.
b) Divide the market into smaller groups
c) Select segment or segments to target.
d) Develop a marketing plan integrating according to product, price, distribution, promotion.
Q2. What is meant by Break-even point? Why is it important for an entrepreneur to calculate Break-even
point? State any four reasons. (2 Marks)
Ans It is the point where in the business in a position of no profit or no loss.

Calculation of BEP is quite useful for the entrepreneur as it helps in assessing:
1) The minimum level of output to be produced.
2) The effect of change in quantity of output upon the profits.
3) The selling price of the product.
4) The profitable options in line of production.
Q3. 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 are 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. (3 Marks)
Ans (a) Description of venture/business venture

(b) (i)Raw material: Whether indigenous or imported, sources of supply etc.
ii) Utilities: These include: power, fuel, water, gas, electricity, etc. Business plan needs to clearly state: (a)
type of utilities required, (b) load sanctioned (c) sources and quality of water used quantum of coal, coke,
oil etc. required and the suppliers of the same.
iii.) Transport and communication system: Requirements for transportation and communication facilities,
modes and means opted for, bottlenecks etc. are duly covered in by the business plan.
iv) Production process: A mention of the process involved in production, the installed licensed capacity of
the plant, the technology to be used, whether available locally or imported, shifts involved, needs to be
present in the business plan.
(Any three)
Q4. 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. (4 Marks)
Ans
Q5. 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. (6 Marks)
Ans
Q1. Why is it important for an entrepreneur to do break – even analysis? (2 Marks)
Ans The calculation of BEP is quite useful for the entrepreneur as it helps in assessing: (any two)
1) The minimum level of output to be produced.
3) The selling price of the product.
4) The profitable options in line of production.
5) It helps in determining how many units must be sold or how much sales volume must be achieved in
order to break–even.
6) It helps to indicate the volume of sales needed to cover total variable and fixed expenses by the new
enterprise.
Q2. Why is a company called an ‘artificial person’? (2 Marks)
Ans A company is created by law. Though, it has no body and no conscience, it still exists as a person,
having a distinct personality of its own. Because like a human being it can buy, sell and own property, sue
others, be sued by others, therefore it is called as an artificial person.
Q3. 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 organization which will help her in continuing her business,
stating reason in support of your answer. (3 Marks)
Ans (a) 1. Unlimited liability: The proprietor is liable/responsible for all losses arising from business.
2. Individual management and control: All affairs are managed and controlled by the sole proprietor.
3. Individual ownership: This business is exclusively owned by a single person
(b) Joint stock company
Benefits (any two)
1. Limited liability- The liability of the shareholders of a company is normally limited to the amount of
shares held or guarantee given by them.
2. Diffusion of ownership and management- Entrepreneur should clearly understand there exists
separation of ownership from management.
3. Number of members- Private company: Minimum required members: 2 Maximum members: 200
(excluding employees) Public company: Minimum requirement: 7 Maximum number: No limit
Q4. “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.
(4 Marks)
Ans Inspite of certain restrictions imposed on a private company, it enjoys certain privileges under the
Companies Act. A substantial number of entrepreneurs prefer to form a private company because of the
following important privileges: (Any four)
3) Such company can file a statement in lieu of prospectus with the Registrar of Companies.
9) Maintaining of index of members is not required by a private company.
Q5. 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’.
(a) Identify the ‘comprehensive yearly document’ being prepared by Abhimanyu Industries.
(b) How is this plan a ‘decision-making tool’ for the management?
(c) Identify the element that is the priority of the CEO of the company.
(d) Why is the element as identified in (c) important? (6 Marks)
Ans a) Business plan

b) Business plans are decision-making tools: (any four)
1) Describing all necessary inputs for the enterprise.
2) Explaining the mode of utilization of the resources.
3) Detailing the strategies for the execution of the project
4) Outlining the desired goals
5) Assessing market sensitivity and the profitability of the venture.
c) Operational plan
d) Importance: (any four)
ii) Facilitating continuous production, lesser work-in-progress, minimization of wastage.
iii) Co–ordinating the work of engineering, purchasing, production, selling and inventory management.
Q1. Why is SWOT analysis important in preparing the marketing plan? (2 Marks)
Ans a. It is important for an entrepreneur to identify his/her target market for the enterprise.
b. Marketing plan needs to consider strengths and weaknesses of the new venture to ensure its success.
Q2. 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? (3 Marks)
Ans Private Company

Reasons:
a. Number of directors: Only two directors are required in case of a private company whereas a public
company requires minimum three directors.
b. Issue of prospectus: A private company does not invite the public to subscribe to its share capital.
Hence, it doesn’t issue a prospectus.
c. Allotment of shares: Shares of a private company can easily be allotted without receiving a minimum
subscription.
d. The control and management are generally in the hands of the owners of capital which is not so in a
public company.
e. A non-member cannot inspect the copies of the P&L A/C filed with the Registrar. (Any two)
Q3. “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. (4 Marks)
Ans The business plan is valuable to the entrepreneur, potential investors, venture capitalists, banks,
financial institutions, new personnel's suppliers, customers, advisors and others who are trying to
familiarize themselves with the venture, its goals, and objectives. The business plan –
c) helps in satisfying the concerns, queries, and issues of each group of people interested in the venture.
d) provides room for self-assessment and self-evaluation, requiring entrepreneur to think through various
e) though not desirable, at times, business plan helps to realize the obstacles which cannot be avoided or
overcome, suggesting to terminate the venture while still on paper without investing further time and
money.
f) as the investors/lenders focus on the four Cs of credit: character, cash flow, collateral and equity
Q4. There is no fixed format for business plan presentation. It varies according to the entrepreneur’s goals
and audience, especially for start-ups there are four formats that are followed for business plan
presentation. Comment. (4 Marks)
Ans Formats of business plan:
The depth and detail in the business plan depend on the size and scope of the proposed new venture.
There is no fixed content for a business plan as it varies according to the entrepreneur's goals and audience
(i.e., who are being targeted).
Thus, it is common for especially start-ups to have three or four formats as follows for the same business
plan.
trigger discussion and interest potential investors in reading the written presentation, i.e., the executive
Q5. 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. (6 Marks)
Ans The component is financial plan of the Business Plan.

A) Proforma investment decisions:
This part of financial plan relates to how the enterprise's funds are invested in different assets so that the
enterprise is able to earn the highest possible returns on investment. An estimate of various components
of capital nature i.e., fixed assets and of working capital should be clearly mentioned in this part of
business plan.
Carefully, clearly and sequentially the entrepreneur should mention investment required in for:
i) Land and building
ii) Machinery and plant
iii) Installation cost
iv) Preliminary expenses
v) Margin for working capital
vi) Expenses on research and development
vii) Investment in short-term assets viz. raw material, level of cash, etc.
This part helps to understand the total amount of finance required by the entrepreneur.
Inadequate funds or excess funds, both have the capacity to severely damage the financial fortune of a
business. Therefore, these decisions must be taken with utmost care.
B) Proforma financing decisions
This section summarizes all the projected sources of funds available to the venture to raise finance from,
which you have already studied in previous class.
Typically, sources of funds are:
i) owners i.e. Owner's funds
ii) outsiders i.e. Borrowed funds
Entrepreneur's job is to ensure the selection of best overall mix of financing for the
enterprise so that:
C) Proforma income statement
Proforma income statement is projected net profit calculated from projected revenue minus projected
costs and expenses. Basically, it summarizes all the profit data during the first year of operations of the
new enterprises.
In preparing the proforma income statement, 'sales by month' must be calculated first, making use of
forecasting techniques as the basis. Following are the most commonly adopted techniques for forecasting:
1) Marketing research
2) Industry sales
3) Survey of buyers' intentions
4) Expert opinions
5) Financial data on similar start-ups
6) Some trial experience of self or others.
D) Proforma cash flow
Profit and cash flow are not same, when from sales we subtract expenses, the result is profit and when
from cash receipts we subtract cash payments, the resultant figure is cash flow. Proforma cash flow
reflects the projected cash available with the enterprise as a result of subtracting projected cash
disbursements from projected cash accumulations. Cash flows only when actual payments are received or
made. Mere sale which might be on credit, will not generate cash. Similarly, all bills are not paid
immediately by the enterprises.
E) Proforma balance sheet
This document helps the enterprise to reflect the position of the business at the end of its first year. A
summary of the projected assets, liabilities and net worth of the entrepreneur
is depicted through proforma balance sheet.
F) Break-even point
Every firm wants to maximise its profits. The Breakeven point is that level of volume of production at which
firm neither makes profit nor a loss. Here the total revenue is equal to the total cost of a firm, at the given
level of capacity.
Thus, calculation of BEP is quite useful for the entrepreneur as it helps in assessing:
1) Minimum level of output to be produced.
3) Selling price of the product.
4) Profitable options in line of production.
It helps to indicate the volume of sales needed to cover total variable and fixed expenses by the new
enterprise.
G) Economic and social variables
In view of the social responsibility of business, the abatement costs, i.e., the cost of controlling the
environmental damage should also be stated in the plan. It's always advisable to mention in the business
plan, the socio-economic benefits expected to acquire from the proposed investment like:
1) Employment generation
2) Import substitution
3) Ancillarisation
4) Export promotion
5) Local resource utilization
6) Development of the area
Wherever, it is not possible to quantify the expected benefits, they should be analysed and their
importance emphasized. (Any six points)
Q6. 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’? (6 Marks)
Ans a. A substantial number of entrepreneurs prefer to form a private company because of the following
important privileges:
3) Such company is not required to file prospectus or a statement in lieu of prospectus with the Registrar
of Companies.
6) A non-member cannot inspect the copies of the profit and loss A/c filed with the
Registrar.
9) Maintaining of index of members is not required by a private company.
(Any 6 points)
b. Company is called an artificial person because it is creation of law. It can hold property, sue and be sued
but cannot perform other life functions.
It has perpetual succession because coming and going of members does not affect the life of the company.
It has a common seal or stamp under which the execution of all its business is done.
Q1. State the liability of a partner? (1 Mark)
Ans Unlimited liability
Q2. 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. (2 Marks)
Ans No, Because the firm is not registered and the partners of an unregistered firm cannot enforce their
rights against the firm and other partners.
Q3. 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 by maximum efficiency. This is
the objective of one of the components of a business plan.
(a) Identify the component
(b)There are three situations before the venture under this component. Explain briefly those three
situations. (3 Marks)
Ans (a) Production plan

(b) Most likely there are three situations before the venture viz.
a) No manufacturing involved: If the new venture does not include any manufacturing function, say it’s a
Q4. 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 (3 Marks)
Ans a. The business plan is a comprehensively written down document prepared by the entrepreneur
describing formally all the relevant
external and internal elements involved in starting a new venture.
b. i. Investors:
as the investors/lenders focus on the four Cs of credit: character, cash flow, collateral and equity
ii. Entrepreneurs:
c) provides room for self-assessment and self-evaluation, requiring entrepreneur to think through various
Q1. Give the meaning of a ‘Joint Hindu Family Business’. (1 Mark)
Ans It is a business which is owned, managed and controlled by the male members of a Joint Hindu Family.
Q2. 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. (2
Marks)
Ans Partnership Deed;

Contents of the deed:
1. Amount of capital to be contributed by each partner.
2. Profit sharing ratio between the partners.
3. Loans and advances from the partners and the rate of interest thereon.
4. Drawings allowed to the partners and the rate of interest thereon.
5. Amount of salary and commission, if any, payable to the partners.
6. Duties, powers and obligations of partners.
7. Maintenance of accounts and arrangement for their audit.
8. Mode of valuation of goodwill in the event of admission, retirement and death of a partner.
9. Settlement of accounts in the case of dissolution of the firm.
10. Arbitration of case of disputes among the partners.
11. Arrangements in case a partner becomes insolvent. (Any four)
Q3. 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. (3 Marks)
Ans Co-operative organization;

Features:
a. ‘Formed an organization where in the persons voluntarily associate….’- voluntary association, anybody
can become a member of a co-operative society
b. ‘managing committee that was elected in the basis of one member one vote’- democratic management,
the management of the co-operative society is democratically elected.
c. ‘the purpose of this organization is to help these craftsmen to find market for their products’- service
motive, the main objective of a co-operative society is to provide service to its members and not to earn
profits. (Any two)
Q4. What will be the effect on Production Plan in the following situations: (3 Marks)
a. When there is no manufacturing
b. When there is partial manufacturing
c. When there is complete manufacturing
Ans No manufacturing involved: If the new venture does not include any
manufacturing function, say it’s a trading firm or a service provider, then this section will stand eliminated
from the plan.
Q5. Why is Break-even analysis regarded as a useful element of financial plan? (4 Marks)
Ans Break-even analysis is useful for the entrepreneur as it helps in assessing:

i) The minimum level of output to be produced.
ii) The effect of change in quantity of output upon the profits.
iii) The selling price of the product.
iv) The profitable options in line of production.
Q1. List the two documents other than ‘The Companies Act’ on the basis of which the scope of a company
is determined. (1 Mark)
Q2. Name and give the meaning of the economic activity that is performed by lawyers, doctors, chartered
accountants and company secretaries. (2 Marks)
Q3. 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. (3 Marks)
Q4. Briefly explain any three characteristics of ‘trading’. (3 Marks)
Q5. State the circumstances under which the sole-proprietorship form of business organization is suitable.
(3 Marks)
Q6. What is meant by an operational plan? Briefly explain its elements. (4 Marks)
Q7. Suresh wanted to start a sole-proprietorship form of business. He expects that his annual turnover is
likely to be more than ı 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. (6 Marks)
Q1. Distinguish between ‘Partnership’ and ‘Joint Hindu Family Business’ on the basis of maximum number
of members. (1 Mark)
Ans As per Companies Act, 2013 (amended) the maximum number of partners is 100, Joint Hindu Family
Business- No limit.
Q2. When should an entrepreneur choose company form of business organization? List any four points. (2
Marks)
Ans (a) Venture is a heavy and basic industry type

(b) Large scale operations are involved
(c) Business requires huge funds
(d) Enterprise involves heavy risks
(e) Enterprise is technologically complex and sophisticated. (Any four points)
Q3. List the socio-economic benefits that are expected to be acquired by an enterprise from its proposed
investment. (3 Marks)
Ans a. Employment generation

b. Import substitution
c. Ancillarisation
d. Export promotion
e. Local resource utilization
f. Development of the area
Q4. Gopal is a young man of 23 years. He has completed a tailoring course from a 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. (3 Marks)
Ans Importance of business plan –

a) Helps in determining the viability of the venture.
b) Helps in providing guidance.
c) Helps in satisfying the concerns, queries, and issues of each group.
d) Provides room for self-assessment and self-evaluation.
e) Helps to identify the road blocks or obstacles.
f) It gives the details of the investment, credit worthiness.
Q5. What is meant by business? List the different categories in which business activities can be classified.
(3 Marks)
Ans Business means all economic activities related to production and distribution of goods and services
undertaken for monetary gains.
It can be classified into three broad categories:
Manufacturing, service and trading
Q6. What is meant by partnership? State the consequences of non-registration of a partnership firm. (3
Marks)
Ans Partnership is an association of two or more persons to carry on as co-owners, a business and to share
its profits and losses.
Consequences of non-registration:
a. A partner cannot file a suit in any court against the firm or any other partner
b. A firm cannot file a suit against any third party
c. Firm or any of its partners cannot claim a set off
Q7. Describe the formats for the business plan that a start-up may have. (4 Marks)
Ans The formats of the business plan are:

a. Elevator pitch: three-minute summary of the business plan.
b. A pitch deck with oral narrative: It should be slide show with oral narrative to trigger discussion.
c. A written presentation for external stakeholders: a detailed well written formatted plan for external
stakeholders only
d. An internal operational plan: it is a detailed plan describing the planning details needed by the
management.
Q8. 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. (4 Marks)
Ans (a) Manohar- Production Budget: An estimate of number of units which must be manufactured to
meet the sales goal
(Any one of the below mentioned budgets)
Manav- Marketing Budget: An estimate of the funds needed for promotion, advertising, and public
relations in order to market the product or service.
Sales Budget- an estimate of future sales used to create company sales growth.
Capital Budget- used to determine whether a firm’s long-term investments are worth pursuing.
Cash flow budget- prediction of future cash receipts and expenditures for a particular time period.
Project budget- prediction of the costs associated with a particular company project.
(b) Values – Fair dealing with customers; Honesty; Fulfilling social responsibility (or any other suitable two
values)
Q9. 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. (6 Marks)
Ans (a)PAN- Permanent Account Number: It is a ten-digit alphanumeric number issued by the income tax
department. It acts as an identifier for the person with the tax department.
(b)Who must have a PAN:
1. all existing assesses or tax payers
2. any person carrying on any business or profession whose total sales exceeds 5,00,000.
3. any person who intends to enter into financial transaction where quoting of PAN is mandatory
4. An assessing officer may allot PAN to any person on special request.
Q1. Distinguish between ‘Partnership’ and ‘Private limited Company’ on the basis of maximum number of
members. (1 Mark)
Ans
Basis Partnership Private Limited Company
Maximum Number of Partners 100 200 excluding employees
Q2. Define business. (1 Mark)
Ans Business is a continuous human economic activity with an objective to earn profit by producing, buying
and selling of goods and services.
Q3. State any two types of utilities created by business activities. (2 Marks)
Ans Business activities result in creation of utilities i.e.

a) Form utility – Changing the form of raw material into finished product creates form utility.
b) Place utility – From the place of production, transporting goods to the place of consumption results in
place utility.
c) Time utility – The process of storing the goods when not required to supplying them when required
generates time utility.
(Any two)
Q4. 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. (3 Marks)
Ans Importance of business plan –

a) Helps in determining the viability of the venture.
b) Helps in providing guidance.
c) Helps in satisfying the concerns, queries, and issues of each group.
d) Provides room for self-assessment and self-evaluation.
e) Helps to identify the road blocks or obstacles.
f) It gives the details of the investment, credit worthiness.
Q5. 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? (3 Marks)
Ans a. Limitation from which Gopal’s business suffered are;

i) Limited capital
ii) Limited managerial ability
iii) Limited continuity
b. Consequences for non–registration of a partnership firm
1) A partner cannot file a suit in any court against the firm or other partners for the arising from a contract
or right conferred by the Partnership Act.
2) A right arising from a contract cannot be enforced in any Court by or on behalf party.
3) Further, the firm or any of its partners cannot claim a set off (i.e. mutual adjustment of parties to one
another) or other proceedings in a dispute with a third party.
Q6. List any six factors that may affect the selection of a form of business enterprise. (3 Marks)
Ans In making a choice, entrepreneur will want to take into account the following:
1) Vision regarding the size and nature of the business.
2) The level of control the entrepreneur wishes to have.
3) The level of "structure" entrepreneur is willing to deal with.
4) The business vulnerability to lawsuits.
5) Tax implications of the different organizational structures.
6) Expected profit (or loss) of the business.
Q7. 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 (6 Marks)
Ans (a) Concept identified -Business plan

Meaning- it is a comprehensive project report which not only encompasses the entire range of activities
which are being planned in the business.
Lines: She thought of starting a small enterprise will require 10 – 15 trained workers and an investment of
rupees two lakhs. This will give 40% annual return on investment.
(b) Elements of Business Plan

1) Business venture
This section of the business plan generally begins with the "mission statement" by the entrepreneur
describing the size, scope and nature of the enterprise.
2) Organisational plan
The organizational plan is that part of the business plan that describes the proposed venture's form of
ownership.
3) Production plan
A production plan helps to plan the work in such a manner that one can clearly form an idea about:
a) Production schedule and/or budget
b) Machinery, equipment requirement
c) Manufacturing method and process involved
d) Plant layout
4) Operational plan
Operational plan is a system whereby there is achieved a smooth and coordinated flow of work within the
factory so that, by planning and control of all the productive operations in all the stages of manufacture,
the final product is completed in accordance with the plans.
5) Human resource plan
HR planning is a process by which an entrepreneur ensures that he/she has the right number of people,
and the right kind of people with appropriate skills, at the right place and the right time to do work for
which they are economically most suitable.
6) Marketing plan
This valuable document is a guideline regarding the marketing objectives, strategies and activities to be
followed by the new enterprise.
7) Financial plan
Financial plan is a projection of key financial data about:
a) The potential investment commitment needed for the new venture, and
b) Economic feasibility of the enterprise
(Any four)
Q1. What is meant by ‘private sector enterprise’? (1 Mark)
Ans Private sector enterprises are those which are owned, controlled, and managed by private individuals,
with the main objective of earning profit.
Q2. 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? (2 Marks)
Ans a. a) Proforma investment decisions

b) Proforma financing decisions
b. The entrepreneur's job is to ensure the selection of the best overall mix of financing for the enterprise so
that:
Q3. 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. (3 Marks)
Ans Consequences of non-registration of a partnership firm:

a. A partner cannot file a suit in any court against the firm or other partners for the enforcement of any
right arising from a contract or right conferred by the Partnership Act.
b. A right arising from a contract cannot be enforced in any court by or on behalf of the firm against the
third party.
c. The firm or any of its partners cannot claim a set off or other proceedings in a dispute with a third party.
Q4. Explain any three characteristics of a company. (3 Marks)
Ans Characteristics of a company (any three)

1) Voluntary association
At least two persons, voluntarily, must join hands to form a private company, while a minimum of seven
persons are required for a public company.
2) Artificial person
A company is created by law. Though, it has no body and no conscience, it still exists as a person, having a
distinct personality of its own. Because like a human being it can buy, sell and own property, sue others, be
sued by others, hence called as an artificial person.
3) Separate legal entity
A company has an independent status, different from its members. This implies that a company cannot be
held liable for the actions of its members and vice-versa. Company has a distinct entity separate from its
members.
4) Common seal
Being an artificial person, company cannot sign the documents. Hence, it uses a common seal on which its
name is engraved. Putting the common seal on papers is equivalent to that of signatures of a human being,
making them binding on the company.
5) Limited liability
The liability of the shareholders of a company is normally limited to the amount of shares held or
guarantee given by them.
6) Transferability of shares
No shareholder is forever wedded to the company. Subject to certain conditions, the shares are freely
transferable. The private companies do impose some restrictions on the transfer of shares.
7) Diffusion of ownership and management
In this form of organisation, entrepreneur should clearly understand that there exists separation of
ownership from management. As the shareholders could be scattered across the country, they give the
right to the directors to manage the company's affairs.
Q5. 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. (4 Marks)
Ans It is common, especially for start-ups, to have four formats as follows for the same business plan.
trigger discussion and interest of potential investors in reading the written presentation, i.e., the executive
Q1. Give the meaning of "Hindu Undivided Family". (1 Mark)
Ans Joint Hindu Family is one which consists of male lineally descended from a common ancestor and
included their wives and unmarried daughters.
Q2. Differentiate between "Excise Duty" and "Customs Duty". (1 Mark)
Ans Excise Duty is a tax on manufacture or production of goods whereas customs duty is a type of indirect
tax levied on import and export of goods and Services.
Q3. 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". (1 Mark)
Ans Dispatching
Q4. How is target market identified while preparing the marketing plan? State. (2 Marks)
Ans (i) Deciding what the general market or industry entrepreneur wishes to pursue.
(ii) Divide the market into small groups.
(iii) Buying situations.
(iv) Select segment and develop a marketing plan.
Q5. Explain any three features of a "Co-operative Organisation". (3 Marks)
Ans (i) Voluntary organization — it is an association of persons desirous of pursuing a common objective.
They can come and leave the
organization at their own will without any coercion
(ii) Democratic Management- the management is vested in the hands of the managing committee elected
by the members on the basis of
one member-one vote
(iii) Service Motive- the primary objective of this organization renders services to its members rather than
to earn profits
(iv) Capital and returns — the capital is procured from its members in the form of share capital. A member
can subscribe subject to a maximum of 10% of the share capital. Shares cannot be transferred but
surrendered to the organization.
(v) Government control- the activities are regulated by co-operative Societies act and state co-operative
Societies act. The organizations are required to submit their annual report to registrar of cooperatives.
(vi) Distribution of surplus — the profits are distributed among the members on the basis of goods
purchased by each member of the Society.
Q6. 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? (3 Marks)
Ans (a) B.E.P — Break Even Point
Advantages
(b) (i) Minimum level of output to be produced
(ii)Effect of change in quantity of output upon the profits.
(iii)Selling price of the product
(iv)Profitable options in line of production.
Q7. "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. (3
Marks)
Ans Budgeting
Benefits:
(i) It is like a road map that can help drive — entrepreneurs in setting goals and assessing the validity of
their business concepts.
(ii) Determining how the business is performing through the years and helping identifying possible future
investments.
(iii) Business leaders can compare actual figures and catch potential business pitfalls early
(iv) It can also be instrumental in winning over investors, convincing banks or bringing new partners
(Any two benefits)
(In case if the student has mentioned financial plan instead of budgeting half mark may be awarded)
Q1. Define a 'Co-operative Organisation”. (1 Mark)
Ans Co-operative Societies Act 1912 defines it as a Society which has its objectives as the portion of
economic interests of its members in accordance with co-operative principles”.
Q2. Differentiate between 'Value-Added-Tax' and Sales tax. (1 Mark)
Ans Value added tax is a multi- point destination-based system of taxation with tax being levied on value
addition at each stage of transaction in the production / distribution chain. Whereas Sales tax is levied on
the sale of a commodity, which is produced or imported and sold for the first time.
Q3. 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”. (1 Mark)
Ans Inspection
Q4. State any four items of physical infrastructure that Should be mentioned in the description of a
business plan. (2 Marks)
Ans Briefly explain in a sentence any four points. Axl

(i) Raw material (ii) Labour (iii) Utilities (iv) Pollution control (v) transport and communication
(vi) production process, etc.
Q5. Before operationalisation of a Hindu Undivided Family Business, its Karta has to fulfill certain legal
formalities. Explain any three such legal formalities. (3 Marks)
Ans Legal formalities before operationalization of HUF (Briefly explain any three)
[1/2 mark each for the heading and explanation]
(i) Capital and members
(ii) Select a Suitable name
(iii) Form a Deed
(iv) Bank account
(v) PAN
Q6. 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. (3 Marks)
Ans (a) Break-even-point

(b) Importance
(i) Minimum level of output to be produced
(ii) Effect of change in quality of output upon the profits
(iii) Selling price of the product
(iv) Profitable options in line of production
Q7. "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. (3 Marks)
Ans Budgeting
(Any two benefits of budgeting)
(i) It is like a roadmap that can help entrepreneurs in setting goals and assessing the validity of their
business concept.
(ii) Determining how the business is performing through the years and helping identifying possible future
investments.
(iii) Helps in comparing actual figures and identifying shortfalls or problems
(iv) Instrumental in winning over investors and convincing banks
Q1. What is meant by ‘mutual agency of partners’? (1 Mark)
Ans The business of partnership can be carried on by all partners or any one of them acting for all.
Q2. Although not mandatory, some entrepreneurs may file part I of entrepreneur’s memorandum District
Industries Centre. Why? (1 Mark)
Ans This may be necessary for claiming certain incentives/subsidies and for certain formalities at the state
level.
Q3. "Human life is built around works". Identify the form of Business Organisation being talked about in
the following sentences: - (2 Marks)
(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.
Ans a. Sole proprietorship b. Partnership c. Cooperative Society d. Company
Q4. 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’s 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. (2 Marks)
Ans Follow-up element helps the entrepreneurs in:

a) Developing ways to review the present situation with regard to materials, work-in-progress and finished
goods.
b) Evolving ways to expedite the performance of those departments which lag behind.
c) Removing obstacles in the way of production by suggesting remedial measures.
(Any 2)
Q5. Explain the following features of a cooperative society: (3 Marks)

Democratic management
Capital and return thereon
Distribution of surplus
Ans Features of Co-operative societies:

1. Democratic management: The management of a co-operative organisation is vested in the hands of the
managing committee elected by the members on the basis of 'one member-one vote'. Democracy is, thus,
the keynote of the management of a co-operative society.
2. Capital and return thereon: The capital is procured from its members in the form of share capital. A
member can subscribe subject to a maximum of 10% of the total share capital or Rs. 1,000 whichever is
higher. Shares cannot be transferred but surrendered to the organisation. The rate of dividends paid to the
members/ shareholders is restricted to 9% as per the Co-operative Societies Act, 1912.
3. Distribution of surplus: After giving dividends to the members, the surplus of profits, if any, is
distributed among the members on the basis of goods purchased by each member from the society.
Q1. Distinguish between ‘sales tax’ and ‘excise duty’. (1 Mark)
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.
Q2. What is meant by ‘Employment’? (1 Mark)
Ans An activity in which an individual works regularly for others and gets remuneration in return.
Q3. Give the meaning of ‘Routing’ and ‘scheduling’ as elements of operational plan. (2 Marks)
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.
Q4. 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. (2 Marks)
Ans 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.
Note: In case if the examinee has not written as internal operational plan but only operational plan then ½
mark should be awarded and ½ mark for explanation.
Q5. 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. (2 Marks)
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.
Note: In case the examinee has given co-operative society or name of any other body corporate with
limited liability of its members then due weightage should be given.
Q6. 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. (3 Marks)
Ans (a) Sole proprietorship
(b) The following are the features for sole proprietorship: (Any five features in statement form)
individual ownership; individual management and control; individual financing; no separate legal entity;
unlimited liability; sole beneficiary; easy formation and closure; limited area of operation.
Q7. 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. (4 Marks)
Ans (a) Sensing entrepreneurial opportunities

(b) Co-operative society form of business organisation
(c) Any two values: Courtesy; fostering respect for differences; sensitivity to environment; good behaviour
in human interaction; sharing, compassion, empathy; discipline; responsibility; respect for law and order;
conflict resolution; team work; honesty and integrity
(or any other two correct values)
Q1. List any two categories of persons that are required to obtain registration from ‘Central Excise
Department’. (1 Mark)
Ans 1. Every manufacturer of dutiable excisable goods.

2. First and second stage dealers or importers desiring to issue cenvatable invoices.
3. Persons holding bonded warehouses for storing non-duty paid goods.
4. Persons who obtain excisable goods for availing end-use based exemption. (Any Two)
Q2. Distinguish between ‘Joint stock company ’and a ‘Joint Hindu Family’ on the basis of liability of
members. (1 Mark)
Ans In case of a Joint Stock Company the liability of members is limited whereas in case of HUF liability of
karta is unlimited and that of other members is limited.
Q3. Give the meaning of ‘Business situation analysis’ and ‘Identification of the target market’ as steps in
preparing the marketing plan. (2 Marks)
Ans Business situation analysis is a review of past performance and achievements of the enterprise.
Identifying the target market- it defines clearly the specific group of potential customers who need the
enterprise aims to fulfil.
Q4. 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. (2 Marks)
Ans Pitch deck with oral narrative- it is an executive summary and a few key graphs showing financial
trends and key decision-making benchmark.
Q5. 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. (2 Marks)
Ans Form utility

Changing the form of raw material into finished products creates form utility.
Q6. 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. (3 Marks)
Ans (a) Sole proprietorship.

(b) (any four characteristics in statement form)
Individual ownership; individual management and control; individual financing; no separate legal entity;
unlimited liability; sole beneficiary; easy formation and closure; limited area of operation.
Q7. 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. (4 Marks)
Ans (a) Sensing entrepreneurial opportunities.

(b) Partnership form of business organisation.
(c) Values: (any two) Courtesy; fostering respect for differences; sensitivity to environment; good
behaviour in human interaction; sharing, compassion, empathy; discipline; responsibility; respect for law
and order; conflict resolution; team work; honesty and integrity.
(or any other relevant value)
Q1. Differentiate between a private company and a public company on the basis of minimum and
maximum number of members required? (1 Mark)
Ans A private company has a minimum of two and a maximum of 50 members excluding its past and
present employees.
A public company has minimum seven people to commence it with no upper limit to membership.
Q2. What is ‘Value Added Tax’(VAT)? (1 Mark)
Ans VAT is a multi-point destination-based system of taxation, with tax being levied on value addition at
each stage of transaction in the production/ distribution chain. VAT is a tax on the final consumption of
goods or services and is ultimately borne by the consumer.
Q3. Give the meaning of ‘routing’ and ‘scheduling’ as elements of operational plan. (2 Marks)
Ans Routing: 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: Scheduling, simply means fixation of time, day, date when each operation is to be commenced
and completed. In general, it’s the determination of the time that should be required to perform each
operation.
Q4. 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. (2 Marks)
Ans Elevator pitch: It is a three-minute summary of the business plan's executive summary. This is often
used as a teaser to awaken the interest of potential funders, customers, or strategic partners.
Q5. 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?
Ans (a) Business Plan

(b) Importance of the Business Plan: The business plan is valuable to the entrepreneur, potential investors,
venture capitalists, Banks, Financial institutions, new personnel like- suppliers, customers, advisors and
others who are trying to familiarize themselves with the venture, its goals, and objectives.
Q6. 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 Gujrati 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. (3 Marks)
Ans (a)Partnership
(b) ‘They decided to share profits equally and that each of them will be liable for acts performed by the
other two’. The features of Partnership are:
i. Profit Sharing either equally or in said ratio.
ii. Mutual Agency principle followed
Q7. Shiela after graduating from college went back to her home town in Meghalaya. It was a small town
with very few job opportunities. The Karbi tribal women in that area were uneducated but still practiced
the method of obtaining traditional colors from natural wild herbs. Their most popular dye was indigo
obtained from the leave called ‘sibu’. Using these colors they added variety to their textiles. The women
were mainly confined to their homes and they did not know how to make a living out of their talent. Shiela
went from door to door analysed the problem that existed. She thought of setting up a voluntary
association of rural women who would be able to join and leave the organisation at their own will without
any coercion or intimidation.
(a) Name the process which helped Shiela in converting an idea into an opportunity.
(b) Identify the kind of organisation that Shiela has decided to set up.
(c) State any two values which Shiela wants to communicate to the society. (4 Marks)
Ans a. Sensing entrepreneurial opportunities

b. Co-operative Organisation
c. Empowerment to women; sustenance of traditional craftwork

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Chapter – 2

Ans c. i, ii, iii and iv

Ans The three situations are:

Ans The business plan –

Ans It is actually a blue print prepared right in advance of actual operations —

Ans Financial Plan. Components of financial plan

Q1. Assertion (A): Minors cannot form a partnership firm. (1 Mark)

Ans c. Sole Proprietorship

Ans Break-even analysis helps the entrepreneur in the following ways:-

Ans Identify the target market:

Ans a. The type of business organisation is Partnership

Ans (a) Private Company

Ans (a) Sole proprietorship

Q2. Break-Even Point is the level where: (1 Mark)

Ans Characteristics of partnership which overcome the limitation of sole proprietorship.

Q5. Explain ‘SWOT analysis’ as a step in preparing a marketing plan. (2 Marks)

Ans SWOT ANALYSIS

Ans Importance of the business plan

Ans (a) Operational Plan

Ans b. i and ii only

Ans 1. Two or more persons;

Ans 1) Only two members are required to form a private company.

Q4. What does the manpower plan help to assess? (3 Marks)

Ans The manpower plan helps to assess three things.

Ans b. Sole proprietor

Ans a. Limited managerial ability, limited continuity

Ans a. Description of business Venture

Q4. A Company is called an artificial person because ____. (1 Mark)

Ans d. it exists in the eyes of law.

Ans d. An internal operational plan

Q7. A company generally affixes a ………….in most of its documents. (1 Mark)

Ans b. Common Seal

Ans c. Mutual Agency

Ans a. Sole proprietorship

Ans a. No separate legal entity

Ans a. Proforma investment decision

Ans b. Private company

Ans c. Limited area of operation

Ans c. Can invite public to subscribe for its shares

Q17. The scope of the company form of organisation is determined by (1 Mark)

Ans d. All 1,2,3

Ans c. Manpower Plan

Ans c. Private Company

Ans c. A is true and R is the correct explanation of A

Q21. Match the following (1 Mark)

1. Break Even Point i. A summary of Projected assets and liabilities.

a. 1 - iii, 2 - iv, 3 - ii, 4 - i

Ans a. 1 - iii, 2 - iv, 3 - ii, 4 – i

Ans d. The profitable options in line of production.

Q23. Match the following (1 Mark)

1. Minor Partner i. Partnership comes to an end.

a. 1 - iii, 2 - iv, 3 - ii, 4 - i

Ans a. 1 - iii, 2 - iv, 3 - ii, 4 – i

Ans c. Profit sharing

Ans c. A written presentation for external stakeholders

Ans b. Partial manufacturing

Ans b. Financial plan

Ans a. Identify the target market

Ans D. All of the above