iP (INTU-HYDERABAg S| 2 eneuR aerr : principles OF ENT a oLUTIONS g AR wr Model Peper. La leader, 2 sa visionary Fader 9 Deion yy, ‘an entrepreneur as follows. st 9180 D2 VP ne needed emtrepre gure Sa describes OM A carefully Water cil eo = Robert D. Histich den “The pe ‘i T50n who is ness ver lcadership is a leader Mr OUeh: there are many definitions of leadersbIP° seed, put tender care. You ae like a gardener. When you want atom, ‘ont manufacture tomatoes, you grow them “A good ent people w ntrepreneus iso confidence it ah him in fulfling the cease so is capable cf ai nf tic pail oes oy a aii 10 mOHYAtE the og and bas he ca) 09-19, (RIO\H, 1,0 Qty (uae Pa0e" @p, efine the ‘Concept of Entrepreneurship. Det z oR ARS fine Entrepreneurship. NoxtOW 9. RIA) ayy oe f associated indivig, ‘or a group of tual of anniv ot ton OF 00076 Body at sree ota nc a Tea ma services" ? vation, It includes not on} systerati ov te novative functions”. It has knowledge largely defined by ge According v9 Schumpeter, gee ependen chunpeer, “Entrepreneurship based 1 evs independent bsinssmaa ss campy dco and amg wn oY A Cee near sets knowlege Pe According to Peter Druck. “Et ither deserding ricker, “Entrepreneurship isn Know! in reprencurship is a means to an end. what ends, that is, by the practice”. is - eae Q3. ~ What are the key functions of an entrepreneur? Answer : ! sevice ora desi Plies, roduc A. successful entrepreneur identifies the commercial potential f= produc oF BS6RVF ie rollowing figure, Product development andthe organizational structure, The functions ofan enrepree Enepenel fone : Detamizes the velo ik Mates cr buses eons Performs the functions of a manager Plas and selects tie poet “Manages te enti organization Rewards allthe factors * ‘of production Selects marietng channels [font sock organization] ACt# the partner wih oi sek organiza : one ie cera aubority kvel Figure: Functions of an Entrepreneur WARNING: XerouPhoiocopying of tis Looks'a CRIMINAL act. Anyone found liye LIABLE 16 face LEGAL proceedings,waived Entrepreneurs jtied entreprenens AE: Other Unel “The other unelas Innovating Entrepreneur Innovating entrepreneurs an indivi) he Couaariae Yeaturs oF a dyanmic IO iy See ta te eeaponnibe for thescTiio eet of reuls derived from various combination Of Pe Innovating entrprencurs are most}y nestle Kt They utilize their imeligence by making optim Utilization of the aliemalive opportunities. !nnOvar cntrepreneurs are mosily found in developed couniris® And are rarely seen in underdeveloped countries. (il) imitative Entrepreneurs Imitative entrepreneurs are those individuals ho possess the characteristic feature of willingness 10 follow Successful innovations or other entrepreneurs. Imitative entrepreneurs copy the techniques and technology ‘ereated by others. They are adoptive and flexible concept of ments who possesses formation ature Define and explain ti entreprenourship. What are the various eler of entrepreneurship? Anower : Definitions of Entrepreneurship ‘According to A. Cole, “Entrepreneurship is the purposeful activity of an individual or 2 group of associated Bie to initiate, maintain or organize a profit oriented business unit by production or distribution of economic ‘goods and services”. ‘According 10 Schumpeter, “Entreprencurship is based ‘on purposeful and systematic innovation. It includes not only the independent businessman but also company directors and ‘managers who actually carry out innovative functions" __Actording to Peter Drucker, “Entrepreneurship s neither 4 Science nor an art. It is a practice, It has knowledge base. Kauwodgeinenepreneurshp i meas an ol deed, ‘what constitutes knowledge in practice is largely defined by the ends, that is, by the practice’ Concept of Entrepreneurship ___ The concept of entrepreneurship can be perceived differently by different entreprencurs. Few consider it a= risk-bearing’ while others view it as ‘innovating’ and few ‘others consider it as ‘thrll-seeking”. In a conference of entrepreneurship held in U'S., ‘entrepreneurship’ was defined as “Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk-taking appropriate to the opportunity and through the sa ot mene Mpa finan: ‘material resources necessary to brit i Pease ry to bring a project to ‘One of the essential features of entrepreneurship is fruity, whict pig bottles. Th it can be infer Risk Be Flying ay ability which 20. Exp used they €3 ied that the entrepreneurs neck innovative produc retums one needs { task. The 0 be enjoying profits competition, changing: comm< scarcity of essential must be capable enough to pred if few of them fails eursbi ements of Fateh ae jcclement of EPTEMCLip, “Te fislowing rete worms 1. Iamovation and 2 Risk bearing, 1, Innovation se ke what water is 0. remain toa eatePett SG yew of unigue an en means ie! BOE TT preneus ned fa era pot FSET pferences fg aout he Cane a ye inventos re customers. Entrepreneurs 8 OF may 20 gt enough (0 For erpce, bu he) af ODP poms and oiihe use ofthe existing products simply Se eerie isk pices The tet example OTIC ag of eee nade available in senall carton ABSA nil cartons are disposable in namure, Once -an be handled easily. ‘Thus, bbe disposed off and c id to produce an sas per the needs of customers. jearing ‘on sky is not an easy task. One needs to put in ep hat postion. In other words, to get higher a ieike higher risk. Being an entrepreneur ranization of the enterprise may ve or suffering loss because of cut-throat Tastes and preferences of the customers, rodities and so on. An enirepreneur fet the levels of risk involved. He eer and nota risk-avoider. Its his risk-bearing Sj number of ventures even ‘must be a risk ‘motivates him to fake ns of an Entrepreneu in the funct Answer t “The finetions of entrepreneurs are broadly classified into four categories. They are'as follows, social responsibility. The concept of entrepreneurshif summarized in the following figure. = fae) P=) eae Setnaisesen [pthc Facto oe oe fe rehat saci Maren Fecton sag [trie Reps -Accoutg Fucon Dinas (Pam Repmen, eer Figure: Functions of Entrepreneurs WARNING: xerouPh otocopying ofthis book isa CRIMINAL. act. Anyone found gully is LIABLE to face LEGAL. proceedi ings.ae Programmes — es solved lated to training and skill development COU Id b bY conduct * ® Jucting the training programmes. Vocational Education Training (VET) Soong to the National Knowledge Commis {cational Education Training (VET) nceds t0 PS Ver poated into the educational system: It is through T that the necessary and basie skills required for the Sstablishment, management and administration of NeW Nenture can be imparted among those who are intended {© establish their own ventures/units soon after the ‘Completion of their school studies. Entrepreneurial Development Programmes (DPS) Through the Entrepreneurial Development Programmes (EDP), the skills required for the establishment of mict© ‘and small enterprises could be cultivated even among, the unemptoyed rural youth, “aw i ‘ (2 Management Development Programmes (MDP) MDPs are conducted with an objective of providing ‘raining to the existing entrepreneurs which enables thet to improve their management as well as the decision making skills through MDPs, both productivity and Profitability of the rural ventures could be improved: drastically Extension Facilities Government provides extension service to the existing entrepreneurs for making them aware of the latest technological advancements, whose knowledge helps the rural farmers to improve their productivity. For instance, kisan eall centers are the prominent extension facilities provided to the farmer for ‘obtaining expert advice on various agricultural-related aspects 924. What are the phases of entrepreneurship development programmes? : Answer ; Sopt-20, (R16), 220) The Entrepreneurship Development Programmes (EDP) has three phases which are as follows, 1. Pre-training Phase 2. Training Phase 3. Post-training Phase L Pre-training Phase + The name itself is explanatory of this stage. It includes all those activities and preparations which are essential (o start up a training programme, This stage involves the following, (a) Entrepreneur selection . (b) Arranging the required infrastructure. (©) _ Inviting the guest faculty to provide training. (@) Setting up inauguration programme, (©) Selecting appropriate tools and techniques, WARNING: Xerox/Photocopying of this book Is @ CRIMINAL act. Anyone found guilty is LIABLE to face LEGAL proceedings, verti ae sion for, ta) Prong nition rang wai ye oe Conductins 4 © Fiven environment ng Phase 2 Tent e jotta ptsr i to eransform™ an indivi The main im to bring & desired change in gy saan eee ry canbe npn if a ct sien oli! wo es velop sneed for ach The following changes are to iy tode) e sotvation amond On the traince's Behavious ed by a trainer i eos es sdidate focusing upon her/his project idea? qs the candida ie rete trainee motivated to adopt entrepreneurial carey 2) rs holds the capacity (0 bear risk? Ge Doss ire exist any variation jn hs entrepreneur ‘outlook, skill, attitude, role and so on? (a) What isthe behaviour of an entreprenew? (©) Which traits are highly lacking/absent in the trainee? 1 of technolo Does the trainee holds the knowleds: ‘By, © FRaources aad other entrepreneurshin prereauisites? ; selecting the Via, Whether the trainee is skillful in selecting (he viahy 2 project, mobilizing and allocating resource’ K the gh, time and the right place? 3. Post-training Phase (Follow-™P) programme is (o prod this phase includes the assessme! ‘are met or not. T! ‘any in our previous W« to frame future policies to im loopholes, @ @) Q25, Explain th Answer + The ina ene cna Ther a ‘at of whether the EDP objectivg us phase is also called as *f01l0W-UP”. Folloy, eso Pa provides suggestions an guide prove the performance and iygiy In short, follow-up in EDP ensures, Reviewing the pre-training phase Reviewing the training process and Reviewing past training approach, itrepreneurial motivatig, approaches and discuss the process entrepreneurial development with appropriay illustrations. May19; (R16), Approaches for Entrepreneurial Motivation ‘The three entrepreneurial motivation approaches are 1, _ Need for Achievement (nAch) 2. Need for Power (nPow) and é 3. Need for Affiliation (nAf), eTGood Planner Fondamentally entrere sod planher™ iy entrepreneurs ae 8 Aesign and follow achievable pans % Problem Solver f waits lot 2 Entrepreneurship is a process whist enilt Toe ‘hurdles and primarily alt nese problems ae OPE by un enreprencur 10. Sotteontice rf ribs stents 94 Anbar A entrepreneur greatly believes it abilities and is eonfident of what she/h 1. Assertive Entrepreneurs are good ‘others for the betterment oftheir 12. Convincing E vince others 10 40 ntrepreneurs hold the ability to convinee what they want, asserting their proble” terpris® 13. Good Controtier Entrepreneurs very critically examine and serulin other's work and sect it that its done according 01M set standards 14. Well.wisher of the Employees ces set of at yyees as an 28s towards enhaneiné ‘as one of the is. trepreneurs consider emplo\ enterprise and therefore make efforts their welfare. Employees are being treated factors of production with emotions and fe 1S. Effective Strategist Establishes the most proficient strategies (0 influence ‘employees to achieve their goal. Individual Research Studies (IRs) ‘Many individual scholars have conducted research studies to determine the entrepreneurial competencies. James JBema conducted a research study at Madras (Chennai) city of India and identified the following competencies, 1. Enterprising nature Growth oriented Innovative Welcomes the advanced and latest technology Keenly watches and adapts the changes. McCrory states the following points regarding the ‘entrepreneurial competencies, ‘i 1. Invests income in enterprise 2. Emphasizes on quality 3. Versatile in nature ‘ _Maked optimiim use of an opportunity on. 2! 3 4 5: 4 5. Makes optimum utilization of the limited resources. B.C.Tandon enlists the following characteristics, 1. Risk-bearer 2. Flexible 3, Authoritative 4. Good organizer 5. Good manager. Answer # follows, 5 6 Got geese mn A ee tii g_ Quick decision ms iighly committed 12, 1B centrepreneurs Firm determinalion. Types “ais, ToPi= os For Answé Refer Unit Serr qaractoristios OF ‘small sca) he ore 29. Write dow ‘entrepreneurs entrepreneurs are St caergaenol omen i youngsters: ener They are mostlY. ‘education. ‘they have the high Jevels “They hole the minimum bas! ‘They are pleasant in nature: by nature: ‘They are hard working: They are zeal0us- ie “They are highly organized and self-confi “They are self-made men. They are well disciplined. “They have a planned approach. ‘They are mostly trained and experienced. ial enthusiastic. ‘They are entreprencuri of capital. ‘They hive small quant ‘They operates in limited geographic areas, ‘They focus on the production of a single product, ‘They enjoy meagre profits. They possess high levels of flexibility.. They are determined but the Job opportunities are f as the small-scale entrepreneurs employ only limit number of employees or labourers. WARNING: mn c YARNING: XerouPholocopying ofthis books & CRIMINAL act Anyone ound Gully Is LIABLE to face LEGAL proceedingsPRINCIPL oes i sizat0°- regards 10 Oa ybody"s Fate onan “They are independent with epard making process and do not Ted! ire - Oe aae Peg iad eater ie OE ne They consider failures and mEBArT ipese Stepping stones to sucess a” * 13 experiences, cir ow? They mostly resolve problems by spplvi9e Wet approaches without systematically coms formal structures Problem Solving *pproach ae ey a hn en eee a e ies, who They usually come from those families Ty gither had small business of. AEFI ckground. Most of the entrepreneurs 1° hhave poor relations with father or have PO Family backround for scpuied 0 ratly indePeD Piationstip Wil ependent They are highly educated dnd possess unique qualiicti Gf good management knowledae, tnd practice professionals fons in terma| theory yn that, but They are either graduates or less tha i they possess qualities and qualieations like Rie achievement motive, real thinking. predic skills, risk-bearing and so on. Entrepreneur's reward is his profit which # Pot certain. zy) Educational levet Manager enjoys a mlany sveny mont which is fixed and certain 2 SUS ine Intrapreneur. Distinguish between Entre} preneur and Intrapreneur. ‘ : preneur P! Definition of Intrapreneur 1s with innovations which res Washington bureaucracies ‘intra-corporate venturing. iS mye Intrapreneursti eae reneurship i$ also known as “corporate entrepreneurship”. It basically deal in corporate divisions 2 i vons or subsidiary ve Me anizations. Hallways of inteaprencurshin ae ano cubsidiary ventuces in lange seale or Reurship as "ours Corporatc Entrepreneurs” (ICE) and Inter Corporate VeonsOB Popular in acaderag ry Corporate Entrepreneurs” (ICE) and “Itra-Corporat Vents = eee to prodlitiPfe0Curs can be defined asthe creative or innovative individuals who disrupt the organization in COT 7 6 Produce ‘new products or services, They ae monly independent in natore sod hold cena fevel Of UOT, COP hein PeneUeS who create new products and services rarely hold the commensurate responsibility 3 ‘ons. They do not assume any personal risk or any profit ar loss. Differences Between Entrepreneur and Intrapreneur Some of the differences between entrepreneur and intrapreneur are as f0/1OWS, i Intrapreneur Basis Entrepreneur “According to Peter F_ Ducker, “He is one who | Intrapreneurs are the innovators and softwar ‘always searches fora charge, responds to itand | professionals who lend their innovative ideas to the exploit it as an opportunity” “organization under which they employed. Decision| He is greatly involved in the decision-making | He does not gets inyolved in the decision-making} Making — | process, process and remains restricted to his work. Nature of| His rewards may vary with the changes in | He gets fixed rewards for the work and also extra Tewand Rewards _| levels of risk, profit or loss. - would be given for his innovations. Risk and] He is the sole responsible person for all the risk uncertainty | and uncertainties associated with the business, In other words, he face high risk. He himself takes-care of the business as well as the customer. He faces medium or average level of risk. He serves himself as customer and the sponsorer. WARNING: is ING: Xerox/Photocopying of this books @ CRIMINAL act Anyone founckgully s ABLE to face LEGAL proceedings, ees the businessm, ty refers £0 ety aon i [es alas partly Deon ake fe al iterest Keith Dany «age managers FESPONSIVENEg, A Berie cial responsibitiny to public comer moughts, “S 3 Fisure (1: Chorscterietcs of on ‘pecording (0 mE ST sponsible wo the organization 6). The dectetoy FN aaa ‘contends thet Mjoups wth which itinterscts related to ethis should show fox | fact ond AN TTT, auch ax workers cUstOS fmerest BPO ea requirements As advantage CAT Als. Any decision which proves Ee oe 10 oneself but not wo others is determi resgoverament and society in Be thal wheat he Hecielass ee Secel a oy Sa prebOlders ‘Organizations have | realized thay hem they leo welfare of city at lar: | fy ncharsing 5% ‘obligations, they build a solid foundation a ce emake Poss, not just im the see Sut also i the fone Social Responsibility of Entreprencers so oct vesporibiicy ofabusinos i VETWEISS TT NTR is opeations in a ve nod fn mane OY ey ein i fe Pernt towards diffrent segmenes #2 =P!" ‘Towards Shareholders — - Te asl eapaamivty ofromcanemness 6 Por sponsibitfing the functioniNS Of the trv en fa inormation Ta Tn onder pate in the Managemen necessary 1O POA Deepens Figure (2: Ditferent Ethie a Practices ofP Characteristics of Busines: a ‘actions or to provide powers #0 intervene- Itis Euhpicenee Ethics to be Followed by an | the interests ofthe owen ce Gene 2 Towards Consumers : Polo e eee teristics of business ethics to be Tho management should provide good quality Prodigy, ne eee tothe conzamers and bt a reasonable price. It should pravigy erica ag rs Sie oe | Ee a ar theca Te sh ee eee frame of reference. 3. Towards Workers Ethical decisions are notrestr i ‘The management should adopt such policies which b ea ie netseeri, ty ae meek 4, gala hy cme tnt, Set APN OES OF telongiy Ethical deci ; eerethich umprove the working and living conditions of yy Sa een es a Ace bettcnen Os workers. The workers should be paid fair wages and they shou, pre roefet hs peceecy wedge ie be treated properly. range. ‘and accountability are twoends ofsingle | 4 Towards Suppliers and Creditors Mos otths siti Beste hee ‘The management should arrange the amount of < ee aes does not give clear results| within the time specified to repay the loans taken from cre mo ‘what willbe the result of | and to pay for the supplies. It should fulfil all the obligatioy unethical decisic i ac E ice alate cores? agreed and should have good relations with them. Entrepreneurs solely accountable orhister unethical |. Towards the Gavernment << The organization should abide by all the laws of te Ethical decisions are vol p 5 untary actinns takea by humam | FNBMER Mt-should pay all;the taxes and other dh beings as they have freedom of choice and of fre will. | 12 {ime ! should suppor the government in ait deen WARNING: . ‘Xerox/Photocopying of this book '# CRIMINAL act. Anyone found guilty is LIABLE to face LEGAL proceedings, %SHIP = id 0, St PRINCIPLES OF oh s Seeraier vinistrati Sh tues ee facturing 994 marketing of manuf se ers cr se, marketint * USE be nscerennea a tit Operative Functions like Whe purse Teisaleg one the firm, J rong of he emP 2 Porta Forth fam to asseafevaluae te 8 eo | : at factors nto the establishment op ae cae aerate ae se caret 0) oe er agh pre a NES tobe prepared after a dete and CAA A following ace FEW factory Browth andi {he firm, "PFOVEMeN OF the frm, I enust alg make suite ts ora factory, The ‘establishinen! must be looked out for the est And sufficient pla rial nt pl raw material 4s the ascertainmer ce ment of the space, source of aK Ruy SeSSSibitty and neamess or chon diane fom he $ Ao S°allablty 6¢ stalled labour near the fiony. ‘ e Svallabitity of land in industrial area. BY) Scope for fi expansion jn the future ‘SteP-6: License cing the business, before commencing sents of government Slee eatictincac The license and Yermission must be taken from different deparem Needed ‘under the provisions of Pé im shoul be regs wi eps sodas cal oma Step- yi na, For ane, tion in onthe how far shat pace a4 are Rees “The next step isto enquire about the availability of aw materials the ya the materials are available ey whether nadia or Aboud. TL the import formalities needs o be carried out 4 ee . ivigy ete, must be made, available, ‘The essential facifities such as machines, tools, technology, power, wate, foad connesti¥IM4 would be no enterprise. There eed Step-9: Finance fits in the firm. : jthout finance the Finance is regarded as an essential element to star a Bye See issuing cetigns oF raising finance, for every frm, 10 borrow the money orto bring own S42 os @ Suing securities and the own funds can be obtained from the shares and bringing Pac Step-10: Markets pj_iTms can survive and grow inthe market wit the use of an appropria 5 fo whether the demand of its produets would be met in fits markets. The f must decide clearly countries : D 7 new ventures (O40. Discuss the "New-New Approach” and "New-Old Approach” for creating ae reprcnicur, red by an entreps There exist two approaches for creating new ventures. Bither of the approach can be adopted PY. 1 "New-new approach 2. © New-old approach. . 1 New:Newaporescn ; ; Revenetee 6 aim is to create a new idea or product Previously New-new approach isan initiative o 2 fees ee Be rae venga el ear Go existing in the market. In other words, itis creati Examples : Smartphones, plasma TVs, GPS devices, organic products ete. Alll the products unique in the market are the results of the efforts made by research and development (R&D) department ¥Y organizations. The rapid entry of new and unique products has increased the consumer expectations about quality. ‘New products are invented or discovered through the following process, 4 Listing out the tough experiences or problems with a product or service during a period of time, Identifying the solutions to the problems, This process results in the development of idea for new products, Exam Developmentof Facebook by Mark Zukerberg, 2 WARNING: Xerox/Pholocop}ing of this book sa CRIMINAL ect, Anyone found gully is LIABLE to face LEGAL. Proceedings, ||) of man; @ (ii)ol y business; entra, prnorthee= ng pars factors a it ses terests and enn the new’ 8ome of th ures | he type of ven Neto NW on re tangible (oes 8° Tas int jeotirn tHe Venting & {to Busing ane mantener 8" | uke oe jcntion, design yt Wer lalty? ny es ‘ we we rtanities Tang he *ets Which ¢) manfsit UNE wen oan oF ee ng @ yentur Tesla cane an be vate oF east NS jn eu ENNIS Hogg “NBibIe 1 and mantel pinent ate ® ‘l 1 aon the market. The .o°4 ty in eae nufacturing equip “al et table 10 Varig ty aa NOUR, Tang ire WAT AO portunities arg, Fy My SAUipment. pee izationnal assets, Raw aerial CRO? Hon 0 ama WHT sic » Beograph Teateal resoueeaNNNS Yosation ant pranies SON font Tesouree, Aired to crear ees Pana otal resources are the Cast Tevourees, qe athe ahd servant ose MPortan olen UMS FEsOUTCes ducing. startup ate the MY Cum AMET fori mca ant soa Tew NEW entrepreneur ‘need in the business HEATLY be Capital 2 Parmers Capitar ‘ 4. fers tothe mon ‘required by entrepagnetirto PONE. 3 OF 10 provide services Cantal (ean pital) i the mos ices. Capital (financigh capital) Perforn pimBertant tangible resouree required success Capital and see's OPeations. ICinelades both fixed Fong tal and also working capital 7 ‘Pareners The partners 01 Partners are ‘liable for Limited partne; Act as investo, 3 "wn and manage the company, General Partnership's debts and responsibilities 8 does not have contro! on the company, they: ns Employees, They are th do “ nn © Persons who work on contract 10 Particular services for the ‘employer in return for money, They are a very vital recnn Vital requirement right the time of starting ny business entrar se urement right the time of 4. Suppliers Suppliers are the sy the raw Persons and firms who supply t suutcrial to the enterprise. They are a vital requirement for the Success of any enterprise. Preferably, the suppliers who provide faw material on credit are ific y iness on credit are more significant to the new busi an significant to the eepris - eee 13.1 Acquiring an Established Entrepreneurial Venture Q43. What are the steps involved in acquiring an established entrepreneurial venture? State the advantages of acquiring an ongoing venture. Answer : ‘Steps in Acquiring Established Venture Acquiring an existing venture involves the following steps, > WARNING: XeroxPhotocopying ofthis Book @ CRIMINAL act Anyone found gu is LIABLE to face LEGAL. proceedings, ors ar jokers Mites WhO provide unit ves include Supplicrs, g anata formation about the ven, ty hp " ayhich Pr sources include accountay,. Oy nal 8 pete Th professiont nsultants ete. They’ us CO) canngerer baa the aVaTAbITLy OF ve foematie elected Venture A rasecioecet! is nt step 32 Bvn step to evaluate cert fain Taetors of, he NESEAED, Ure factors 10 De evaluaced a for purch Swhiel ; solected FCP vironment under which the sei, > snes EPP Ge analysed properly « ey ra of Project Appraisal Figure: Mothods nomic Analysis: ‘ reer ename analysis ofthe Project NVIVe Eee pei uation eve sina aw materials) fits. The business sho fe pected profits. houid, tae) expenditures oT profit to know how much sales is Re ie yarabls Tike soi Sa that level of profit. Ee elps in determing EXpeoditures and other fictors helps in determining oem level. 5 Fe ‘The product's demand must be analyzeq fir derstand the project feasibility. The government jg gt spcentives and concessions to those projects which Ee ait inthe backward areas. So, the firm MUST ensue they examine whether they belong 10 this category orgy Financial Analysis The financial analysis considers finance as the Pring resource fo the entrepreneur to bring all the inputs ugh Tnbour, raw material, plant and machinery together in Orde} Broducete goods. To ow the financial stability of they, the following areas are analyzed diligently, @ Assessment of the financial requirements contiasy a the fixed and the working capital needs, 8 WARNING: XerouPhotoeaying of his books a GRMINALc. Anyone ound gully UABLE to face LEGAL proceedings, ai ENEURSHIP (INTU-HYDER, 0 as ENTREPR! PRINCIPLES OF Prapretors? <) eternal a >, parinershin Einanctal Objeetives 45, Company a! Ase ‘Sertaining Hie TYpes of Securities to be Issued Formulating Financial Poli Figure: sto Step a, re St0P8 tnvos Estimating th The ea eae tents ofthe frm ao be estimated sand weedy ae of the firm. An sessment of fixed is needed ta haty ttl feduited should be made, Working capital aGOUS current assets such as bills receivable, ian ash required to meet the daily expenses of capital is require to acquis flood eee ike Hand machinery, land and building et, and iis long period Bae Ttainlog the Types of Secures te be Issued coer TISS ake ebueah r Faging Seance fonds ee CNY Onetsninene eae ee eer Sindee eno eu cee ‘Me proportion should be Properly ascertained for effective financial planning Step—4: Formulating Fininclal Potties Financial pl lated to cash contro ancial activites Th decisions relating one Wvad in Financial Plonning Process 'e Capital Requ ital require ‘rious needs ments the them iy SteP-3: Asce ing involves the formulating of policies ‘nding and borrowing and various other lese policies aid in making important e Capital administration and also helps to achieve co-ordination in vari tal act aus dination in various financial activities ofthe firm, 68. Explain organizational plan with reference to Ownership structure. Answer ; describe mami zational plan is a part of business plan which cto, San form of ownership i.e, proprietorship, partnership cea etean after the project formulation and selection stage is {ompleted along with form of financing, the entrepreneur recds {2 8ive a Serious thinking about the legal form ofan enterprise, fant When the entzeprencur wishes to raise a loan, a banker, [Rhancial institution and private fender will be interested iy » decnhe ts form of ownership, ie. the entrepreneur needs Frctaade, Which form of enterprise to start depending upon Rictors like capacity to take decisions, risk bearing ability, sEaRomile soundness, educational attainment. The ownership Wucturé includes different formis Of business organizations ‘They are, ___ WARNING: xorowProtocop ni bok 6 & CRIMINAL act Anyone ound Aull eLIABLE fo fac0 LEGAL. proceedings, ive societ coopers i 18 inte Form of OwNESHID Se ctton of an APPFOP! j rie aoletion Of ee very form of oct thas iis own odvantones sneer oh cor ts 2A ne hon Be the business ob) entrepreneur should keep the fj, things his/her mind. ie ofan enterprise suitable for the buy, he nature O (0) Business that requires the pesona tention | ota ess are usually establis skill for the success axe bli ake fale proprietorship firms/concery | usin ean pooting of funds and hy tsually established as “partnership, Sele’ (b) the large scale production, ©) Firms involved e ea form of ownership. the "Company then “Company” form of business is suitable for the a Degree of Control If direct control over the operations of the busing reyuited then the proprietorship business uta ifdirect contol is not required then ‘company’ fy ownership is best suitable, i 4, Capital Requirements If the business needs small amount of capita best form of ownership will be “proprietorshigy “partnership”. In case where large amount of capita required then the ‘company’ form of ownership iby suitable, : 5, Risk and Liability i If the entrepreneurs can bear the risk individu then one can organise thé firm in the form 4p Proprietorship and fone can't handle the risk nya in business, then He/She can go for a company 7a risk is limited to the shareholder's liabitity ma _company, a