BANGALORE SAHODAYA SCHOOLS COMPLEX ASSOCIATION

PRE-BOARD EXAMINATION (2024-2025)

Grade XII

Class: - XII Date: - 09-12-2024

Time: - 3 Hrs SUBJECT: ENTREPRENEURSHIP (066) Marks: - 70
SET 1

GENERAL INSTRUCTIONS:
(i) This question paper contains 34 questions. All questions are compulsory.
(ii) The question paper is divided into four sections – Section A, B, C and D.
(iii) In Section A: Questions number 1 to 18 are Multiple Choice Questions carrying 1 mark each.
(iv) In Section B: Questions number 19 to 24 are Short Answer type-I questions carrying 2 marks each.
(v) In Section C: Questions number 25 to 29 are Short Answer type-II questions carrying 3 marks each.
(vi) In Section D: Questions number 30 to 34 are Long Answer type questions carrying 5 marks each.
(vii) There is no overall choice. However, an internal choice has been provided in Section B, C and D of
question paper.

Q.No. Question Marks

SECTION- A
1 Kshamaa has learnt the art of Crochet from her grandmother. She opened a boutique 1
by herself near her college. She introduced new designs in her work which is highly
appreciated by everyone. Which of the following is not the characteristic of above
form of business organisation.

(a) Individual ownership (b) Separate legal entity.

(c) Unlimited liability (d)Sole beneficiary

2 Read the following statements: Assertion (A) and Reason (R). Choose the correct 1
option from those given below:
Assertion (A): A business plan helps an entrepreneur to systematically plan and
manage various aspects of their business, such as production, finance, and marketing

Reason (R): A well-prepared business plan provides a roadmap for achieving business
goals, ensures a clear direction, and helps in attracting investors by demonstrating the
potential for success.

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
3 Read the following statements: Assertion (A) and Reason (R). Choose the correct 1
option from those given below:
Assertion (A): Human resources are an essential part of resource mobilization
because the success of a business depends on the skills and knowledge of its
workforce.
 Reasoning (R):
Human resources, unlike physical or financial resources, do not require capital
investment and can be easily accessed without any formal plans or processes.

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true

4 The best assurance that the enterprise will flourish, requires the entrepreneur to 1
properly plan out for a rich and continuous supply of qualified personnel. Which
planning emphasis the above
(a) Organisational Planning (b)Production Planning
(c) Financial Planning (d)Manpower Planning

5 Anil Ltd. decided to raise funds by issuing shares. The finance department felt that the 1
company should offer the shares to existing shareholders on a pro-rata basis. Out of
the following, identify the method of raising the funds being suggested by the finance
department?

(a) Public Issue (b) Rights Issue

(c) Private Placement (d) Offer to Employees

6 Identify, which of the following is not a current liability for an enterprise 1

(a) Creditors (b) Outstanding expenses
(c) Bills payable (d) Long term loans

7 For a viable venture to be born, an entrepreneur is required to apply his knowledge, 1

skill, competencies and creativity strategically to market'. Identify the requirement to
be complied with by these factors for successful processing of an idea into opportunity
(a) Product Identification (b) Market assessment
(c) Problem Identification (d) Strategic Positioning

8 Under which stage of creative process, the subconscious assimilation of information 1

happens
(a) Idea germination (b) Preparation
(c) Incubation (d)Illumination
9 Mixed negotiations are blend of 1
(a) Integrative and Distributive
(b) Integrative and Inductive
(c) Inductive and Deductive
(d) Distributive and Deductive

(OR)
Which among the following is not an advantage of franchising to the franchisee?
(a) Cost advantage
(b) Knowledge of the market
(c ) Management expertise
(d) Capital requirement
10 Flow of information in the form of feedback from consumers/users to producers 1
results in

(a) Downward flow of Information

(b) Upward flow of Information
(c) No flow of information
(d) All of the above

11 Democratic management is one of the features of 1

(a) Private Company (b) Public Company

(c) Co-Operative Society (d) Hindu Undivided Family

(OR)
Find the activity which is not a part of internal expansion.
(a) Replacing old machines with new machines
(b) Increasing the present production capacity by adopting new technology
(c) Increasing the labour force to increase the output
(d) Buying exclusive rights of local distribution and becoming a franchisee.

12 Pick the odd one 1

(a) Tata (b)Maggi

(c)Apple (d) Lux

13 Which of the following is not a Intellectual property right. 1

(a)Patents (b)Trade marks

(c)Goodwill (d)Copyrights

14 Fill in the blank with the right option 1

The acquisition of Jaguar Land Rover by Tata Motors in 2008 is a prime example
of a ____________________ in India. Both parties were able to negotiate the deal
without conflict, and Tata Motors successfully integrated JLR into its global
operations, preserving the brands' identity while enhancing its own portfolio. The
acquisition provided Tata Motors with a valuable foothold in the premium automobile
market, contributing significantly to the company’s long-term growth and success in
the global automotive industry.
(a) Friendly acquisition. (b) Reverse acquisition
(c) Back flip acquisition. (d)Hostile acquisition

15 ____________function relates to evaluation and appraisal of work performed. 1

(a) Expediting (b) Scheduling
(c) Routing (d) Dispatching

16 ______________is the length of time between a firm’s purchase of inventory and the 1
receipt of cash from accounts receivable

(a) Operating Cycle (b) Product Life Cycle

(c) Cash Conversion Cycle (d) Revenue Cycle
17 If ROE is 16% and profit after tax is 64,000. What will be the Equity 1

(a) 4,000 (b) 40,000

 (c) 4,00,000 (d) None of the above

18 You being an entrepreneur using which of the following analysis will help you to 1
determine the minimum quantity necessary to run your business efficiently and
profitably.

(a)Break-Even Analysis (b)Cash Flow Analysis

(c)ABC Analysis (d)Value Chain Analysis

SECTION – B

19 Leoraj Enterprises sells 2500 school bags annually. Demand for the product is 2
uniform. Purchase Cost per bottle is Rs.100. Holding cost per annum is 10% of
purchase cost. Ordering cost is Rs. 500 per order. Calculate the Economic Ordering
Quantity for bottles?

20 In spite of certain restrictions imposed on a private company, it enjoys certain 2

privileges under the Companies Act. A substantial number of entrepreneurs prefer to
form a private company because of some important privileges: List any four
privileges.
21 Explain the elements of Innovation process 2

22 Differentiate between Integrative and Distributive negotiations. 2

(OR)
Name the two factors which greatly effects the operational plan

23 What is operating synergy? How is it different from financial synergy? 2

24 Differentiate between Internal and External Expansion 2

SECTION- C

25(A) Elaborate on the following types of mergers? 3

a. Conglomerate
b. Horizontal merger
c. Product extension mergers

(OR)
25(B) Explain the various approaches used in promotion strategy
26 Following are the balances of current assets and current liabilities of XYZ ltd. Cash
– Rs.50,000; outstanding expenses- Rs.5000; Creditors- Rs.15,000; Debtors- 3
Rs.50,000; Short term loans- Rs.10,000; Short term investments-Rs.30,000; Long
term loansRs.1,00,000; Stock-Rs.70,000. Calculate the gross and net working capital
of X YZ Ltd.

27 “All ideas need not necessarily become sound business opportunities”. In reference to 3
this statement explain the first three steps in idea and opportunity assessment.

28 Potential investors regard the marketing plan as critical to the success of the new 3
venture. Thus, the entrepreneur should make every effort to prepare it as
comprehensive and detailed
Explain the first three steps involved in preparing the above plan.

29(A) Explain any three Factors which lead to effective employee relationship 3
 (OR)
Explain the below listed three causes that lead to a business failure
29(B) (i) Unworkable goals
(ii) Diminished customer base
(iii) Uncontrolled growth

(OR)
Explain the three situations to be considered while preparing the production plan .

SECTION – D

30(A) Ravi has recently completed his graduation in Computer Science from a reputed
university. After receiving his degree, his father asked him about his future plans. Ravi (5)
was uncertain and didn't have a clear answer. His father suggested that he start his
own tech startup while continuing his studies part-time. Ravi agreed to the idea,
although hesitantly.
Ravi partnered with his college friend, Rahul, to launch a software development
company focused on creating mobile applications. They both invested Rs. 15,00,000
each to fund the business and aimed to generate good profits. However, being new to
the startup world, Ravi and Rahul didn't define clear deadlines for their projects or set
specific goals for the number of applications to be developed. As a result, their
business initially saw some growth due to the novelty of their product, but soon they
encountered challenges.
As the business expanded, they realized the need for more structured planning.
However, Ravi and Rahul couldn't agree on the best approach. Rahul suggested
developing a series of unrelated apps for different markets, while Ravi felt they should
focus on one niche. Unsure of what to do, they sought advice from Ravi's father. His
father recommended that they define their activities to be specific, measurable,
attainable, relevant, and time-based to achieve better results.
(a) Identify the concept about which Ravi’s father advised them
(b) State an importance of the concept identified in (a) above
(c) Also state the three rules that may be followed in the implementation of the
concept.
(OR)
In the early 2000s, the video rental industry was dominated by companies like
Blockbuster. Netflix’s founders, Reed Hastings and Marc Randolph, initially recognized
the potential to disrupt the video rental market through an online subscription
model. Netflix started with a low subscription fee (for example, $7.99 per month) for
unlimited DVD rentals with no late fees. This was significantly lower than the typical
fees at Blockbuster, which charged customers per rental and imposed late fees.

(OR)
The main objective of the advertising is to increase profit by increasing sales . To
achieve
this the aim and rules of advertising need to be clear and specific. Explain the
objectives and
the four rules to be considered while planning for an advertisement.
30(B) Netflix offered a 30-day free trial, allowing new customers to explore its services at
no cost. This helped the company gain immediate traction and create a strong
customer base without the risk of financial commitment. After establishing a solid
customer base, Netflix began slowly raising its subscription prices. This was done
carefully to avoid customer churn while still increasing revenue as the service became
more popular. Identify the pricing strategy adopted by Netflix and bring out the
advantage and dis advantage of the above pricing method.

31 An entrepreneur has launched a new tech startup that initially saw rapid growth due to 5
its innovative product offerings. However, in recent months, the startup has faced
challenges as new competitors emerge, consumer preferences shift, and market
regulations change. The company’s inability to quickly adapt to these environmental
factors is beginning to affect its market position. Explain the benefit of understanding
the relevant environment of business.

32 The All in One Ltd. Manufactures three products. Based on the given information, 5
Calculate Break-even point of each product in Units and in Rupees

Calculators Punching Scissors

Machines
Sales Price per ? ? ?
unit
Variable cost 100 60 25
per unit
Contribution 100 40 50
Per unit
Sales mix 20% 50% 30%

33 Tharuni started her business of making dosa batter from her home during her free time 5
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 five items which should be included in the component which gives a
projection about the economic feasibility of the enterprise.

34(A) "How does the role of a venture capitalist vary depending on the stage of funding in 5
an organization? Evaluate.

(OR)
34(B) Explain the Developmental and Regulatory functions of National Bank for Agriculture
and Rural Development

(OR)

Ashwin is a mentor to Snidga who just completed her graduation in entrepreneurship.

He suggest that a thorough environmental analysis is required before she starts a
venture and it should be an ongoing process throughout her entrepreneurial journey.
By staying informed and adaptable, Snidga can position her business for long-term
success, minimize risks, and make informed decisions. He says the foundation of a
successful venture lies in the depth and accuracy of the environment analysis
conducted at the start. By referring to the above passage,
highlight and explain the benefits of understanding the relevant environment of
business.