MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 1 OF 15

Name:
Class: XII
Subject: Entrepreneurship
Date: Roll No.
Invigilator’s Sign.
Session: 2021-22 SET-B
SUBJECT CODE:066
Time allowed: 90 Minutes

Time: 90 minutes Maximum Marks: 35

General Instructions:
1. The Question Paper contains three sections.
2. Section A has 24 questions. Attempt any 20.
3. Section B has 24 questions. Attempt any 20.
4. Section C has 12 questions. Attempt any 10.
5. All questions carry equal marks.
6. There is NO negative marking.

SECTION A

1 “ New products or services lead to new business opportunities.” Identify the source of ability
to perceive and preserve the basic ideas.

a. Problem
b. Change
c. Invention
d. Competition

2 Private individuals could start a venture as :

a.Public Corporations
b. Departmental Undertakings
c. Joint Sector Enterprises
d. Company

3 The business environment can be classified as:

a. Internal environment and external environment

b. Micro and macro environment
c. Economic and cultural environment
d. Ecological and legal environment

4 When capital requirement is limited, Secrecy is important, market is local and quick
decision making is necessary ____________ is the best form of organisation.
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 2 OF 15

a. Joint Hindu Family Business

b. Company
c. Sole Proprietorship
d. Partnership

5 “TravelKhana aims to solve a ‘food -on- the-move’ issue by making available fresh,
tasteful food to “Indian Railways’ commuters”.
Pushpinder Singh, CEO and chief of TravelKhana, followed various stages in developing
his project, Identify the stage quoted above.

a. Spotting an opportunity by analysing the needs and problems of the society.

b. Identifying a product or service through innovation
c. Setting up a project and nurturing it to success.
d. Evaluating the ideas received from different sources to find a creative solutions.

6 “The business of the firm can be carried on by all the partners or any one of them acting for
all. Identify the characteristic which signifies the statement.

a. Mutual agency
b. Utmost good faith
c. Implied authority
d. Continuity

7 “E-commerce, e-tail are part of ever-growing market”. What is the source of their idea
field?

a. Service sector ideas

b. Market or demand driven ideas
c. Existing products or services
d. Trading related ideas

8 Statment1: Capital and managerial requirements are higher as compared to that of sole
proprietorship.
Statment2: Enterprise falls in the category of being a small or medium scale enterprise.
Above mentioned statements are suitability of _______ form of business.

a. sole proprietorship
b. partnership
c. private company
d. public company

9 “Observation in the market place is the best way to get on the actual trends. Entrepreneurs
can study the habits, preferences and likes and dislikes of the consumers.”
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 3 OF 15

a. Talk Trends
b. Read Trends
c. Watch Trends
d. Think Trends

10 “Rekha is engaging herself in three branches which she might not be able to manage but
with expansion, she will be able to divide work according to their skills and experience.”
Which feature is highlighted by above statement?

a. More financial resources

b. Better management
c. Division of work
d. Possibility of conflicts

11 Founder of Walmart ___________ , was an entrepreneur who touched millions of lives in a

positive way. His innovations in distribution warehouse centres and inventory control
allowed Walmart to grow, less than 30 years, from a single store in Arkansas to the nation’s
largest retail chain.

a. Jeff Bezos
b. Elon Musk
c. Sam Walton
d. William Henry

12 The _______ section of financial plan gives a brief summary of all potential sources of
finance available to the entrepreneur.

a. Proforma investment decision

b. Proforma financing decisions
c. Proforma income statement
d. Proforma cash flow

13 i. The present supply schedule of the competitors.

ii. The possible future supply by new entrants.
iii. Also the market form, whether monopolistic competition or monopoly or oligopoly
should also be assessed.
The above factors are to be assessed under _______________ while assessing the market.

a. Demand
b. Supply and nature of competition
c. Cost and price of product
d. Project innovation and change
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 4 OF 15

14 An entrepreneur makes use of several financial projection techniques and tools to draw up
a financial plan. Generally a financial plan needs ______ years of projected data to satisfy
investors.

a. 5
b. 3
c. 2
d. 4

15 The Karta in Joint Hindu Family business has :

a. Limited liability
b. Unlimited liability
c. No liability for debts
d. Joint liability

16 Identify the form of Business Organization being talked about in the following sentence:
“The birth of this legal person is by law and can be put to death by law only.”

a. Sole proprietorship
b. Partnership
c. Co-operative
d. Company

17 Identification of problem helps the entrepreneur in the following ways:

i. To understand the needs and problems of the market.

ii. To retain old customers.
iii. To become creative.
iv. To become hardworking.
v. To increase national income of the country.

Choose the correct option:

a. i,ii,iii,
b. i,iii,v
c. ii,iv,v
d. ii,I,iv

18 In a manufacturing unit of an enterprise the process concerned with determining the exact
route or path of a product is

a. operational plan
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 5 OF 15

b. routing
c. transporting
d. dispatching

19 The depleting reserves of petrol is a threat for the car manufacturers. E cars or solar
powered engines are the outcome of such threats, which forced them to look for alternate
sources of energy.
Recognize the importance of environment stated in the above statement.

a. Identification of opportunities to get first mover advantage

b. Formulation of strategies and policies
c. Tapping useful resources
d. Better performance

20 Match the following components of business plan with their elements.

Component Elements
A. Operational plan i. Entrepreneurs bio data
B. General introduction ii. Transport and communication
system
C. Organizational plan iii. scheduling
D. Business venture iv. Roles and responsibilities of each
members

a. A-i, B-ii, C-iii, D-iv,

b. A-iii, B-iv, C-i, D-ii,
c. A-iii,B-i,C-iv,D-ii
d. A-iv, B-ii, C-i, D-iii,

21 An entrepreneur can resolve the problem or can find the reason also by studying this
document known as business plan that is why it is also known as

a. blueprint of enterprise
b. solution plan
c. execution plan
d. appendix

22 “The people working in a firm make it what it is” the statement is talking about

a. training of workers
b. recruitment of personnel
c. manpower planning
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 6 OF 15

d. a & c both

23 Change in population demographics, social mobility, income distribution is a part of

________factor.

a. social
b. economic
c. political
d. ecological

24 Match the following Elements of Operational Plan:

1. Routing a) Issuing necessary orders, instructions and guidelines
2. Scheduling b) evaluation and appraisal of work performed.
3. Dispatching c) exact route or path a product/ service has to follow right from
raw material till its transformation into finished product.
4. Follow up d) Fixing a time day or date when each operation is to be
commenced
a. 1 c; 2 d; 3 b; 4 a
b. 1 c; 2 b; 3 a; 4 d
c. 1 c; 2 a; 3 d; 4 b
d. 1 c; 2 d; 3 a; 4 b

SECTION B

25 “ Jhunjhunwala’s timing was almost perfect because of liberalisation and the Indian
middle-class affluence began to bloom after 1991, and every middle - class home was
gifted one or two La Opala sets at a wedding. The idea was to bring out an elegant product,
Indianise it and make it readily available at an affordable price”.
Identify the elements of business opportunity quoted in the above lines.

a. Assured market scope

b. An attractive and acceptable rate of return on investment.
c. Potential for future growth.
d. Innovation and creativity

26 The first stage in the process of innovation is ______________ , it leads to discovery of

opportunity and new venture creation.
a. creativity
b. idea germination
c. illumination
d. incubation
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27 Assertion (A) A pitch deck with oral narrative format is a hopeful, entertaining slide show
and oral narrative that is meant to trigger discussion and interest potential investors in
reading the written presentation.
Reason (R) The main purpose is to target the internal stakeholders.
Choose the Correct Option:

a. Both A and R are correct, and R is correct explanation of the A.

b. Both A and R are correct, but R is not the correct explanation of the A.
c. Only A is correct.
d. Only R is correct.

28 Anant and Anandi together took over their family business of furniture. They understood
that the present competitors were using online means to sell their products. They decided
on a new idea of providing furniture on a rental basis to offices and households and to also
start making furniture using the traditional method which caught the attention of the new
generation. They opened stores in various cities and started selling through online mode
also. Identify the idea field used here.

a. Natural Resources
b. Existing products or service
c. Trading related ideas
d. Service Sector ideas

29 During the Pandemic, the worst hit were the families who were infected by the virus and
had no source for home cooked nutritious food. ‘Chilly Chillz’ is a multi-cuisine chain of
restaurants operating throughout Delhi by a well-established network of outlets. The owner
of the chain understood the concern and started serving 3 course meal to such families on
payment basis. The interested customers had to login the website, select their location and
set their menu for the day. This service proved to be a great support for suffering families.
What was the source of generation of basic idea?

a. Innovation
b. Invention
c. Problem
d. Competition

30 Statement 1: The proportion of sales mix must be pre- determined.

Statement 2: The sales mix must not change within the relevant time period.
Statement 3: All costs can be categorized as variable cost per unit and total fixed cost are
constant.

Above statements are :

MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 8 OF 15

a. assumptions of pricing strategy

b. assumptions for calculation of break even
c. process of break-even analysis
d. assumptions of computation of working capital

31 Jet Airlines is planning to expand its flights to Pakistan and Afghanistan over the next 5
years. Its executives are carefully analysing the environment. Which factor are they paying
attention to?

a. Political
b. Economic
c. Social
d. Ecological

32 Statement 1: Business environment consists of three levels i.e., SWOT analysis level,
micro level and macro level.
Statement 2: Environment scanning is required to convert an idea into opportunity.

a. Both are true.

b. Statement 1 is true and Statement 2 is false.
c. Statement 1 is false and Statement 2 is true.
d. Both statements are false.

33 WX ltd. is in the process of innovating a new pen drive especially for teachers which will
have a built-in antivirus and which can be worn like a watch so it minimises the problem of
losing the pen drive. Which of the given statements aptly describes the situation?

a. This is trend spotting

b. This is product identification
c. This is problem solving
d. This is problem solving by introducing an innovative product.

34 Assertion (A) :Unit of sale is a management tool that is required to understand the
economics of the business in an easy standardised way.
Reasoning (R) : It helps a business in tracking progress over a number of years and taking
corrective actions, when necessary.

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.
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 9 OF 15

35 Amit has been running a successful family based on jewellery business for past 3 years in
Jabalpur. Now, he wants to open a chain of his stores across M.P. For this, he seeked the
help of his chartered accountant friend Mr. Kshitij and asked him to draw up a plan which
would help him to access his capital requirements. Name the plan to be prepared and the
components of such a plan.

a. Operational Plan
b. Business Plan
c. Organisational Plan
d. Human Resource Plan

36 The scope of operations of sole proprietorship form of business is limited because of :

a. Limited finance availabilities

b. Limited managerial abilities
c. Limited skills
d. Both (a) and (b)

37 Which of the following examples is not a part of the social environmental factor?

a. At the time of Holi, a large number of manufacturing firms get involved in making
colours which are used in the celebration of this colourful festival.
b. A particular channel refrains from showing the advertisement of a particular product as
it is banned by the government.
c. The sale of sarees increases in the months of the year when a large number of marriages
take place in India. The saree manufacturing companies make special plans of sale for
these months.
d. a & c only

38 Siddhant is a post- graduate in pharmacy and has worked with the pharmaceutical giant
‘Cipla’ for about 7 years. He now plans to open his own pharmaceutical company,
manufacturing painkillers and health tonics. His friend, who is a lawyer, warns him that as
a drug manufacturer, he would constantly be required to comply with various regulations,
failing in which would lead to initiation of lawsuits. Keeping this factor in view, ________
form of organisation would be suitable for Siddhant.

a. sole proprietorship
b. partnership
c. company
d. cooperative

39 Dr. Bhim is a senior cardiologist and is concerned about the depleting health index. He
researched and found that proper eating habits can improve the quality of life. He initiated
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 10 OF 15

‘MediBytes’, a unique canteen, where the food is provided as per one’s health needs. The
food served at MediBytes has no fast food and no aerated drinks. It provides zero oil food
with all the basic nutrients required for the bod. Initially these canteens were started in
hospitals but since people are becoming health conscious, MediBytes is planning to open
their branches in other locations also.
Identify the idea field that was explored by Dr. Bhim.

a. Natural Resources
b. Existing products or service
c. Trading related ideas
d. Service Sector ideas

40 A partnership firm comes to an end on the

a. retirement of a partner
b. death of a partner
c. partner opens a separate firm
d. Both (a) and (b)

41 Identify the type of business that makes a tangible product.

a. Manufacturing
b. Wholesale
c. Retail
d. Service

42 Arvind started his manufacturing unit in Jammu and Kashmir. scarf, both woollen and silk.
His business was not picking up in the markets as desired. He found out the reason his
scarves were not selling was due to their colour. What could be the best source of this
information?

a. Manufacturers
b. Retailer
c. Competitors
d. Government bureau

A grocery store sold in a different quantity products at the prices indicated against them:
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 11 OF 15

Products Price per unit /kg Qty sold

Dal 40/kg 35 kgs
Chili powder 40/kg 10 kgs
Salt 5/packet 5 packets
Chips 15/packet 10 packets
Juice pack 5/packet 5 packets
The shopkeeper also found, based on the number of bills issued by him, that there were 50
customers. The cost of each grocery item is 75% of its selling price.

Solve the Q.43- Q.45 based on the above data.

43 What will be unit of sale?

a. average amount per bill

b. kilogram
c. packets
d. customer

44 What will be the unit price per customer?

a. Rs.50
b. Rs.40
c. Rs 30
d. Rs 20

45 What will be the unit cost and gross margin?

a. Rs.20 , Rs.10
b. Rs 30, Rs15
c. Rs10, Rs 5
d. Rs 30, Rs 10

46 Assertion (A) : Needs and problems exists in the environment Reason

Reasoning (R) : Opportunity is spotted by analysing the environment.

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.

47 Can all ideas be converted into opportunities?

a. Yes, as ideas lead to opportunity

MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 12 OF 15

b. Yes, only if it has assured market scope

c. Yes, only if there is a good market for the product and rate of return on the investment is
attractive.
d. Yes, if the entrepreneur has enough financial resources

48 George Kutty has a coffee bean processing unit in Kerala. During the pandemic he has
learnt different styles to make coffee. He started improvising his product and range to
make coffee premixes in different varieties like Latte, Mocha, Dalgona which will
eventually help him to establish a place for his brand in the beverage industry.
Identify the Idea field used by him.

a. Market driven
b. Trading related
c. Creative efforts
d. Service sector

Section C

49 In the drive to make the world ‘plastic free’, Aru designed a machine to convert single-use
plastic into very small granules that could be used for making low cost roads. Her machine
worked with the help of solar energy. She put her idea before the venture capitalists by
making an entertaining slide show and oral narration. She also presented the executive
summary of her proposed venture and a few key graphs. The format of business plan used
by Aru is :

a. Elevator pitch
b. A pitch deck with oral narrative
c. A written presentation for external stakeholders
d. An internal operational plan

50 Rehan and Nishant got jobs in IT sector and were based in Bangalore. Rehan was from
Delhi and Nishant was from Gujarat. Both were missing home food. The canteen food was
highly unappetising. The checked out several tiffin services but did not find them
satisfactory. The food was not apt for their taste buds. So, they decided to quit their jobs
and start a professionally managed tiffin service by the name ‘Food Factory’. They not only
gave chapatis and North Indian curries, but also started with ‘Gujarati thali’, as regional
meals.
Recognize the source of perceiving the basic idea?
a. Problem
b. Change
c. Invention
d. Competition
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 13 OF 15

51 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 is feeling that she
may not be able to effectively manage a large business because of her deteriorating health.
Identify the feature of sole proprietor business highlighted in the above case.

a. Individual financing
b. Easy formation and closure
c. Limited area of operation
d. Individual ownership

52 Vipin Taneja has completed his master’s degree in computer science from IIT, Delhi. He
thought of an attractive economic idea which could be implemented to create a business,
earn profits and ensure further growth. The idea was to link the different restaurants with
the Indian railway network so that while traveling, the railway passengers can order food as
per their liking.
Identify the concept discussed above.

a. Enterprise Process
b. Business Opportunity
c. Problem Identification
d. Product Identification

53 Kareem after completing his XII class 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 work as a helper to a
renowned electrician of the area. After working with him for two years he decided to start
his own electrician shop in the village. For this he purchased equipment of Rs.10,000 and
hired a shop at a monthly rent of Rs. 2,000. He himself managed the shop.
Identify the characteristics of the form of organisation.

a. Voluntary associations
b. No separate legal entity
c. Common seal
d. Limited liability

54 Ecobrick is a company manufacturing bricks using recycled plastics. They have collection
centres in various strategic locations all over the city and citizens are encouraged to sell
their plastic products in these centres. This will save the environment in the long run. Also,
it will promote ideology of ‘Swachh Bharat’. It will generate good revenue for the company
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 14 OF 15

as it sources its raw materials from the general public from whom the used plastic products
are a scrap.
Identify the factors affecting the environment in the above case.

a. Political
b. Economic
c. Social
d. Legal

55 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 of operational plan.

a. Scheduling
b. Follow up
c. Inspection
d. Shipping

56 Suprabh was trained under ‘Skill-India Programme’ and was carefully monitoring the
environment for detecting early signs of opportunities. Under the ‘Skill-India- Programme’
he was sensitized about different uses of waste materials. He grabbed this opportunity and
decided to use old newspapers and notebooks to prepare file covers for students with an art
called ‘papermache’. He formulated plan of action to capitalize on the opportunities in the
market.
Identify the benefit Suprabh had by understanding the environment in the above case study.

a. Identification of opportunities to get first mover advantage

b. Better performance
c. Image building
d. Tapping useful resources

57 Divyansh is the CEO of a company and he always pay special attention to the recruitment
of personnel. He himself supervises all the interview and decide upon the personnel to be
selected. He keeps a close eye on manpower required by different departments and how
they are to be recruited. He firmly believes that the people working in a firm make it what it
is. Here, Divyansh pays attention to ______.

a. financial plan
MSD/2021-22/XII/EP /Term 1 /SET-B/PG- 15 OF 15

b. manpower Plan
c. Business plan
d. Both (a) and (b)

58 Kumar belongs to a farmers family. One day a team of officials from the local block
development office visited his village for discussing additional opportunities related to
agriculture. The team discussed with the villagers how to develop fishery. The team
explained about the technique of construction of ponds and the modern technology of
growing fishes. The team also informed that the ‘state agriculture department’ will provide
a loan at an interest rate of 2.5% per annum to the farmers who will engage themselves in
the occupation and will also help the farmers in the marketing of the fishes. Kumar decided
to engage himself in the fishery occupation.
Identify the Idea Field that help Kumar to engage himself in the fishery occupation.

a. Trading related ideas

b. Natural resources
c. Existing products and services
d. Creative efforts

59 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. Identify the component.

a. Financial Plan
b. Organisational Plan
c. Operational Plan
d. Production Plan

60 Hina was manufacturing beauty products and was always on the lookout to improvise her
products. She used social media and online surveys to understand the latest trend in
customer needs and overall in cosmetics industry. Through the surveys, she understood that
the customer’s prefer natural ingredients like multani mitti or neem in place of chemicals in
the beauty products. Responding to customers needs, she developed “Multani Mitti cum
Neem face Pack” in an attractive package. It was highly priced as she knew that the
customers will be ready to pay the price for the quality. Her face pack was an instant
success. Identify the way in which Hina spotted this trend.

a. Read trend
b. Write trend
c. Talk trend
d. Think trend
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