Marks: 70 Amity School, Bharuch Date: 18/10 /21

Time: 3 Hrs. Pre FirstTerm Exam 2021-22 Std.: XII Comm.

Section-A
1. It is basically a 3 minute summary of the business plan.
a. Profile b. Sile c. Plan d. Elevator pitch
2. It is one of the elements of Operational Plan.
a. Routing b. Retail
c. Income statement d. None
3. ___________ is analysis is a useful technique of determining how many units must be sold.
a. Target market b. Operational plan
c. Written document d. Breakeven point
4. ____________outlines the requirement potential investment for a new venture.
a. Operational plan b. Promotional plan
c. Business plan d. Financial plan
5. Goal setting allows us to be __________ instead of just being reactive.
a. Proactive b. Attentive c. Attainable d. Attainable
6. From the information given below, find the break-even quantity for LMN Ltd.
Fixed Expenses = Rs. 1000000
Unit Price= Rs.12000
Unit Cost=Rs.7000
a. 4 units b. 500 units c. 200 units d. 200 units
7. Which of the following formats of business plan is not targeted towards the external
stakeholder?
a. Elevator pitch b. A pitch deck with oral narrative
c. A written presentation for external d. An internal operational plan
stakeholders
8. . Assertion (A): Needs and problems exists in the environment
Reason (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.
9. It means fixation of time, date, day when each operation is to be commenced and completed
a. Routing b. Dispatching
c. Scheduling d. Shipping
10. By adopting and changing to new processes, technologies, machineries, standard etc. Are
called
a. Modernization b. Expansion
c. Diversification d. None
11. Which of the following is the part of Operational Plan that goes beyond the manufacturing
process, describing the flow of goods and services from producers to consumers?
 a. Routing b. Dispatching
c. Inspection d. Shipping
12. A party to whom money is owed is called
a. Creditor b. Debtor
c. Bank d. Financial institution
13. Which could provide an individual with the motivation to start a new business venture?
a. The financial rewards. b. A desire to be independent.
c. Risk taking d. All the above.
14. Which of the following is the reason for business failure __________.
a. Lack of market research. b. Poor financial control.
c. Poor management. d. All the above
15. A business arrangement where one party allows another party to use a business name and
sell its products or services is known as__________.
a. A cooperative. b. A franchise
c. An owner-manager business d. A limited company
16. Innovation can best be defined as_______.
a. The generation of new ideas b. The evolution of new ideas
c. The opposite of creativity. d. The successful exploitation of new
ideas
17. Suppliers constitute a part of:
a. Internal environment b. Micro environment
c. Macro environment d. None of these
18. Market research gives information regarding:
a. Market needs b. Market size
c. Level of completion d. All of these
19. ___________ sector is the growing field regarding:
a. Primary b. Secondary
c. Service d. None of the above
20. Entrepreneurs should take advantage of social networking tools like social network sites, i.e.
Facebook, Instagram etc. to identify new trends. This is an example of:
a. Read trend b. Talk trend
c. Think trend d. Watch trend
21. ________ are those goods which directly satisfy the wants of the consumers.
a. Consumer goods b. Producer goods
c. Durable goods d. None of these
22. Transporting apples from the orchids of Kashmir to the markets of Delhi is an example of:
a. Form utility b. Place utility
c. Time utility d. None of these
23. In business, the profit earned is the reward for the _____________.
a. Activity undertaken b. Service provided
c. Risk undertaken d. Activity performed
24. In a __________ economy, manufacturing is done under some degree of government control.
a. Mixed economy b. Socialist
c. Free market d. Collectivist
25. While choosing a form of business, an entrepreneur should insider which amongst the
following factor(s)?
a. Size and nature of business b. Level of control
c. Tax implication d. All of these
26. The scope of operation of sole proprietorship form of business is limited because of:
 a. Limited finance availabilities b. Limited managerial abilities
c. Both (a) and (b) d. None of these
27. Which amongst the following is/are the demerits of sole proprietorship?
a. Limited life of business concern b. Quick decision making
c. Limited scope for expansion d. Both (a) and (c)
28. A partnership firm comes to an end on the:
a. Retirement of a partner b. Death of a partner
c. Insolvency of a partner d. Any of the above
29. Which amongst the following is/are the consequence(s) of non-registration of a partnership
firm?
a. A partner cannot file suit in any court against the firm
b. A case cannot be filed against a third party for claiming any right conferred by a contact.
c. The firm cannot claim a set-off in a dispute with the third party
d. All of the above
30. Kundan Lal Bhalla is the Karta of an HUF. He has:
a. Unlimited liability b. Limited liability
c. Implied authority d. Both (a) and (c)
31. A private company is one which:
a. Restricts the right to transfer its shares b. Limits the number of its number to two
hundred
c. Prohibits any invitation to the public to d. All of the above
subscribe its share
32. Who among the following can open a current account?
a. A person competent to contract b. Clubs
c. Both a and c d. None of these
33. DSC stands for:
a. Director Signature Certificate b. Director Scanning Certificate
c. Digital Signature Certificate d. Digital Scanning Certificate
34. ESIS (Employment State Insurance Scheme) is applicable to non-seasonal factories
employing _________ or more persons.
a. 10 b. 15
c. 20 d. 50
35. ______ plan is that part of the business plan which describes the proposed venture’s opted
form of ownership.
a. Operational b. Production
c. Organizational d. Business venture
36. Break-even point is useful for the entrepreneur as it helps in assessing:
a. The minimum level of output to be the entrepreneur
b. The selling price of the product
c. The effect of change in quantity of outputs upon the profits
d. All of the above
37. The part of business plan that generally contain any backup material that is not necessary in a
text of document as letter from customers, distributors or any research data ,contract copies
etc. known as:
a. Appendix b. Operational plan
c. Marketing plan d. All of these
38. Which of the following factors does the macro-environment not include?
a. Political and regulatory factors b. Customer needs in a given market
c. Social and demographic factors d. Technological changes
39. A company generally affixes a ………….in most of it’s documents
 a. Common signature b. Common Seal
c. Common affixture d. Common annexure
40. An idea should eventually lead to success of the venture of an entrepreneur. Which among
the following ideas will an entrepreneur have to select?
a. Basic idea b. Any random idea
c. Idea developed before environmental d. Idea developed after environmental
scanning scanning
41. (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?
a. Implied authority b. Utmost good faith
c. Mutual Agency d. Agreement
42. Nelson started an AC repair shop in his area after doing a diploma course. What idea field is
it?
a. Market driven b. Trading related
c. Service related d. Creative efforts
43. Identify the third element in the innovation process from the given options.
a. Resource organisation b. Commercial application
c. Implementation d. Analytical planning
44. As per law, a business and owner are one and same in case of sole proprietorship. What
characteristic does this imply?
a. No separate legal entity b. Separate legal entity
c. Legal entity d. Legal equity
45. What is the minimum paid up capital required to start a private ltd. Company?
a. Rs.1,00,000 b. Rs.10,00,000 c. Rs.5,00,000 d. Rs.50,00,000
46. Which is the first stage in the process of innovation?
a. Idea germination b. Creativity
c. Preparation d. Incubation
47. ………………. component of a financial plan helps to ascertain the highest possible returns on
investment.
a. Proforma investment decision b. Proforma income statement
c. Proforma cash flow d. Proforma balance sheet

48. What can serve as a basis for formulation of strategies and policies?
a. Identifying needs b. Identifying problems
c. Identifying strengths and weakness d. Identifying threats and opportunities
Section-B
49. Akash is a budding entrepreneur. He has developed an organic soap that uses coconut oil as
the base with herbs that have traditionally proven as cure to skin diseases. He wants to
gather information in an organised manner about the preference of the target market or
potential customers. This systematic gathering and interpretation of information using
statistical and analytical tools is called
a. Market survey b. Market research
c. Environment analysis d. Environment scanning
50. Shikhar and Aksh were working in the IT sector in Bangalore. Shikhar was from Mumbai and
Akash was from Delhi. Both of them missed their local cuisine and realised that there were
many like them. So, they quit their jobs and established a tiffin service which catered cuisine
from various part of India. What was the source of perceiving the basic idea?
a. Problem b. Change
c. Innovation d. Invention
51. At late 60s, Ramshekhar opened a poultry farm in his town, but it was a failure because he
failed to consider the fact that around 75% of the population in his town was vegetarian.
Which external environment led to failure?
a. Legal environment b. Technological environment
c. Social environment d. Economic environment

52. Mr.Dinesh wanted to manufacture an energy efficient AC. He looked into various options and
finally narrowed down to one option. He understands that his idea would have to follow a
process. Identify the process.
a. Process of idea germination b. Process of creativity
c. Process of idea generation d. Process of idea fields
53. Divij and Ayaan were partners in a transport business. With a view to expand, they thought of
changing the form of business where their liability will be limited. To keep a control over the
business, they decided to sell shares to friends, families and some employees. Which form of
business they adopted?
a. Public limited company b. Private limited company
c. Cooperative organization d. None of these
54. Kamakshi wanted to raise finance. For this purpose, she decided to prepare a 3-minute
summary of business plan’s executive summery to awaken the interest of potential investors.
This format of presentation of business plan is referred to as:
a. Elevator pitch A pitch deck with oral narrative
b. A written presentation doe external c. None of these
stakeholders
55. Who said this “The planning of industrial operational involves four considerations, namely,
what work shall be done and lastly when and by whom the work shall be done.”
a. Kimball and Kimball Jr. b. Alford and Beatty
c. Wright d. Hicks and Gullet
56. Nadim is a budding entrepreneur. He is always in touch with the changes in the external
environment which helps him to identify opportunities and find strategies to capitalise on the
opportunities at the earliest. Sensing the growing demand for fine furniture, he started the first
online furniture mart, which helped him to capture more than 80% of the market share in a
short span. This is an example of
a. Tapping useful resources b. Image building
c. Formulation of strategies and policies d. First mover advantage
57. Tuition centre is possibly one of the most cost-effective businesses to launch, due to its near
zero starting cost requirement. Most tuition-teachers take classes in their own homes, thus
eliminating any expenditure on rent and supplies. The only effort you need to put in as a
tuition teacher is to take to advertise yourself on social media or go the old school way with
flyers and ‘word-of-mouth’ recommendations. Which idea field are we talking about?
a. Creative effort b. Market of demand driven ideas
c. Service sector ideas d. Natural resource
58. Meghna Nayak, Founder of LataSita, a fashion brand that up-cycles old saris into beautiful
unique and ethnic pieces, states, “I felt inspired and confident enough to start LataSita in India
where we already have a long history of upcycling and jugaad woven into the culture-I wanted
to update it and infuse it with some style and snazz!” . Meghna has sensed an opportunity.
Name the factor which is involved in sensing this opportunity.
a. Ability to harness different sources of b. Vision and creativity
information
c. Ability to perceive and preserve the d. Noe of these
basic idea
59. Sheetal after opportunity spotting and scanning the environment, has led to a definite service
which is Children’s Party Rentals and Events which was launched by her to meet the demand
for children’s parties. She offers party planning, children’s destination event planning, themed
birthday parties, teen/tween events and hassle-free pop-up party kits. Her idea leads her to a
 definite service which she can sell. Identify among the following the step of the idea and
opportunity assessment.
a. Demand b. Trend spotting
c. Product identification. d. Competition
60. 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?
a. Individual management and control b. Easy formation and closure
c. Limited area of operation d. Unlimited liability
61. 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
62. 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
63. Moon Pharma Ltd. manufactures face masks and face shield, amidst the COVID 19
pandemic.
The total fixed cost of entire operations is Rs. 1,40,000.
The Break-even quantity for face masks will be ________________.
Product Face mask (Per Face shield
pcs) (per pcs)
Selling price per box (in Rs.) 30 50
Variable cost per box (in Rs.) 20 30
Sales Mix % 60 40
a. 4,000 pieces b. 6,000 pieces c. 10,000 pieces d. 1,00,000piece
s
64. The scope of the company form of organisation is determined by
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
65. Can all ideas be converted into opportunities?
a. Yes, as ideas lead to opportunity
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.
66. An economic idea which can be implemented to create a business enterprise and earn profits
must possessed with
A. Practicability of the idea
B. Competence of the entrepreneur to encash it
C. Potential of future growth
a. Only A b. A and B only c. A & B and C d. B & C only
67. Pintu runs a company that sells ball pens. They first determined the fixed costs, which
included property tax, salaries, etc. which sums up to 1, 00,000. The variable cost for
 manufacturing a pen is Rs.2 per unit. Hence, they sell the pen at a price of Rs.10. If one has
to determine the break-even point, that would come up to:
a. 5,000 b. 20,000 c. 12,500 d. 15,000
68. Assertion (A): for trading concern, the operating cycle will be shorter
Reason (R): longer the operating cycle, working capital quantum is less.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R ate true but R is not the correct explanation of A.
c. A is true but R is false
d. A is false but R is true
69. Unit Price=
a. Total sales/ No. of units sold b. Total sales x No. of units sold
c. Total sales + No. of units sold d. Total sales - No. of units sold
70. Assertion (A): a good financial plan has a scope for making changes in the future.
Reason (R): a good financial plan has clarity defined objective.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R ate true but R is not the correct explanation of A.
c. A is true but R is false
d. A is false but R is true
71. Assertion (A): Operational plan is the soul of business plan
Reason (R): the operational plan section describes the physical necessities of your business
operation.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R ate true but R is not the correct explanation of A.
c. A is true but R is false
d. A is false but R is true
72. Sohan is working with Ram, a new entrepreneur, as a Marketing Manager. For smooth and
coordinated flow of work, he had to pay attention towards various elements. To maintain the
appropriate number of sales, he had to compare various sales methods and reach out
different team members. Identify and state the element being discussed above which is
related to one of the components of a business plan.
a. Supervision b. Inspection c. Marketing d. None of these
73. 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 ‘OHM’ 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?
a. No, they cannot form a partnership firm since all of them are minors.
b. Yes, they can form partnership firm
c. No, since minimum number f people required to for partnership firm is 10.
d. None of the above
74. Alan has observed the market in his area and noticed that the there is a scope for toys for
small children. The number of toy shops for such children was very less in his area. He
thought of starting a small enterprise for the same. He also ensured that the business will 1-2
boys in the shop as helpers and an investment of around 2 lakhs. He is expecting around 30-
40% annual return on investment. Identify which entrepreneurship concept is being discussed
in the para.
a. Innovation b. Business opportunity
c. Investment purpose d. Competition
75. Earlier this week, the World Bank released its Global Economic Prospects report. It expects
India's gross domestic product (GDP) to contract by 3.2 in 2020-21. There will be a moderate
recovery to 3.1 growth in 2021-22. This means that 2021-22 GDP will be less than what it was
in 2019-20. To be sure, India is not the only country which will face this predicament. The
 East Asian region seems to be the only exception. -Hindustan Times, June 14, 2020
Identify environmental factor stated in the above article.
a. Social b. Economic c. Legal d. Technological
76. 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
77. 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.
a. Partnership b. Public Company c. Private Company d. Company
78. Mota Ram runs a small business specialising in delivering organic fruits and Vegetables to the
local area. He buys from local farms and packages these in boxes and delivers them locally.
Total fixed cost incurred in the entire operation is Rs. 1, 00,000.
What will be the Total Break Even Point for Mota Ram?
Products Organic Fruits Organic Vegetables
(per Kg) (per Kg)
Selling price per box (Rs.) 350 250
Variable cost per box (Rs.) 250 150
Sales mix % 55 45
a. 100 boxes b. 1000 boxes c. 10,000 boxes d. 1,00,000 boxes
79. Match the column:
Column-A Column-B
1. Political i. Unemployment
2. Ecological ii. Government stability
3. Technological iii. Environment protection
4. Legal iv. Rates of obsolescence
a. 1-i, 2-ii, 3-iv, 4-iii b. 1-ii, 2-i, 3-iv, 4-iii
c. 1-ii, 2-iv, 3-i, 4-iii d. 1-ii, 2-i, 3-iii, 4-iv
80. 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.
a. Marketing Plan b. Financial Plan
c. Manpower Plan d. Organisational Plan
81. 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 d. Service sector
efforts
82. Aloma Ayurvedic Limited is a well-established name in the market for ayurvedic medicine. It
has entered into the market of immunity booster drinks and has introduced Immunity Shots in
special packaging, in two flavours.
Total fixed cost incurred in the entire operation is Rs. 5, 60,000.
 Based on the Break-even point analysis, will it be economically viable for Aloma Ayurvedic
Limited to continue with the production of these immunity shots?
Product AloTurm (50ml/ shot) AloAm (50ml/ shot)
(Aloevera& Turmeric) ( Aloevera& Amla)
Selling price per shot 50 75
(in Rs.)
Variable cost per shot 25 45
(in Rs.)
Sales Mix in the year 4000 shots 6000 shots
a. Yes, as there is a big market for immunity boosting products.
b. No, because there is a limited variety of immunity boosting shots being introduced by the
company.
c. No, because the breakeven point is very greater than the combined sale of the two varieties
d. Yes, because the breakeven point is smaller than the combined sale of the two varieties.
83. Which of the following statements correctly explains the concept of creative efforts?
1. Develop and improve an existing or new product or service.
2. Compete with an existing product or service
3. Find a new process or resource for manufacturing a prod
a. Both 1,3 b. All 1, 2, 3 c. Both 2,3 d. Only 1
84. 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.
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.
85. Nonika Ltd. manufactures two types of calculators, Basic Model and Scientific Calculators.
The total fixed cost of entire operations is Rs. 1, 40,000.
The weighted average contribution will be ________________.
Products Basic Calculator(Per pcs) Scientific Calculator (per
pcs)
Selling price per box (in Rs.) 370 575
Variable cost per box(in Rs.) 120 175
Sales Mix % 70 30
a. Rs. 650 b. Rs. 455 c. Rs. 195 d. Rs. 560
e. f.
86. 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.
87. Match the following
Column-A Column-B
1. Breakeven point i. A summary of projected assets, liabilities
2. Proforma income ii. Actual payments are received or made
statement
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 costs 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
88. ‘Safe for Women’- SFW has been a known brand among working women as the company
keeps introducing various new innovative products for the safety of women. Their latest
 product is a pen which can be used as a pocket knife. The product is in huge demand.
Which point of importance of scanning the environment does this news indicate?
a. Formulation of strategies and policies b. Tapping useful resources
c. Image building d. Better performance
89. Arvind planned to start a small fast-food joint in his area after finishing his degree in hospitality
management. His plan was to combine and use healthy ingredients like whole wheat flour to
make the burger buns. He knew that he had to start collecting information from different
sources which will help him to identify the right opportunity to start his business. From where
will Arvind get the necessary information?
a. Magazines b. Shows c. Family members d. All of the above
90. Rishabh lives in Vijay Nagar, a residential colony near Delhi University (DU). Being close to
DU this area is a hub for students who come from outside Delhi to study here as they find
good accommodation with Tiffin service readily available. Rishab has a vacant residential
building there. He found it to be an attractive economic idea to start a paying Guest House.
He knows that he has a good market because of the location of his building. Identify the other
requirement and he has to ensure before opting for this opportunity.
a. An attractive and acceptable rate of return on investment
b. Assured market scope
c. Practicality of idea
d. None of the above
91. Trilochan, an entrepreneur wants to start an industry to manufacture scooter 'Pawan Putra’ in
rural area of Rajasthan where very less employment opportunities are available. He wants to
fix a very low and reasonable price for this scooter as compared to his competitors so that
lower income group people can afford to buy this. For this, he thought to prepare ...............
business plan with the objective of picturising ahead every step in a long series of separate
operations, each step to be taken in the right place in the right degree, and at the right time
and each operation to be done at maximum efficiency.
a. Production b. Organization
c. Human d. Marketing
92. Match the forms of business organization with their features:
Column-A Column-B
1. Partnership i. Artificial person
2. Sole trader ii. Sole beneficiary
3. Joint stock company iii. Mutual agency
4. Cooperative organization iv. Voluntary organization
a. 1-iv, 2-iii, 3-ii, 4-i b. 1-iii, 2-ii, 3-i, 4-iv
c. 1-iii, 2-iv, 3-ii, 4-ii d. 1-iii, 2-iv, 3-i, 4-ii
93. Assertion (A): An activity in which an individual works regurly for others and get
remuneration in return, undertaking personal services as per the agreement is called non-
economic activities.
Reason( R ) : The occupation /activity which requires an individual to apply special knowledge
and skills is said to be profession
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R ate true but R is not the correct explanation of A.
c. A is true but R is false
d. A is false but R is true
94. Assertion (A): Profit is the reward for undertaking a business activity.
Reason(R): No business can survive for long without earning profits.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R ate true but R is not the correct explanation of A.
c. A is true but R is false
d. A is false but R is true
95. Assertion (A): The sole proprietor has limited liability.
 Reason(R): A sole proprietor will be responsible for all the costs and debts of their company
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R ate true but R is not the correct explanation of A.
c. A is true but R is false
d. A is false but R is true
96. Assertion (A): business is a human economic activity.
Reason(R): business includes those economic activities in which human beings generally
produced or purchase goods for sale objective to earn profit.
a. Both A and R are true and R is the correct explanation of A.
b. Both A and R ate true but R is not the correct explanation of A.
c. A is true but R is false
d. A is false but R is true
Section-C
Read the given case study and answer the question number 97-100:
Rahul runs a grocery shop in the local market. He buys goods from the wholesale market and
sells it to the customers as per their requirement. By doing so he earns some profit. He had
started his business two years ago by investing Rs.2 lakhs, which he had borrowed from his
relatives. Today, he is running his business successfully, earning a good profit, and has been
able to pay back the borrowed money. He has also employed two persons to help him in the
shop.
A textile factory is going to be started area nearby where Rahul is carrying on his business.
As a businessman, he now in a delighted mood and wants to expand his business. He is
thinking that once the textile factory is set up, he will get more customers; the sales will
increase and he will earn more profit. But, for all these, he will have to expand his business,
and for this he needs more money. The major problem is how to arrange the additional funds.
He has the option of getting loans from the banks. But the fear of loss comes to his mind
again and again. He does not want to take that risk. Another option is that he may join hands
with some other person. By doing so, more resources can be raised, work can be shared, and
business can be run in a better way. The risk of loss will also be shared.
97. Which form of business enterprise is stated in the below mentioned lines?
“Rahul runs a grocery shop in the local market. He buys goods from the wholesale market
and sells it to the customers as per their requirement.”
a. Partnership b. Sole proprietorship
c. Company d. None of these
98. Which form of business enterprise is stated in the below mentioned lines?
“Another option is that he may join hands with some other person.”
a. Partnership b. Sole proprietorship
c. Company d. None of these
99. Partnership for of a business is an ideal choice for starting a new venture, if the
entrepreneur’s
a. Capital and managerial requirements are higher
b. Enterprise falls in the category of either being a small or a medium scale enterprise.
c. Direct contact with the customers is essential
d. All of the above
100. Sole proprietorship form of business organization is suitable:
a. Where the market for the product is small and local
b. Where customers are given personal attention
c. Where capital requirement is small
d. All of the above
Read the given information and answer the question number 101-104:
‘Pacific India Ltd.’ are producers of different sizes of television. It is one of the most
recognized consumer electronica brands in the country, with a reputation for new age
technology, digital concepts and excellent after sales service. The company cost and selling
 price is given below in the table:
Size of TV Unit Selling Price Unit Variable Cost Fixed Expenses
24” Rs.5, 000 Rs.2, 000 Rs.4, 000
32” Rs.10, 000 Rs.7, 000 Rs.6, 000
36” Rs.15, 000 Rs.12, 000 Rs.8, 000
42” Rs.20, 000 Rs.14, 000 Rs.9, 000
101. What will be the break-even quantity of 24” size TV?
a. 1.33 units b. 1.22 units c. 1 unit d. 1.5 units
102. Which of the following is the formula for break-even point?
a. Fixed expenses x Gross margin b. Fixed expenses/Gross marine
c. Fixed expenses + Gross margin d. Fixed expenses- Gross margin
103. Gross margin=
a. Selling price per unit/ Variable price per unit
b. Selling price per unit+ Variable price per unit
c. Selling price per unit x Variable price per unit
d. Selling price per unit - Variable price per unit
104. What will be the value of gross margin for the 42” size of TV?
a. Rs.6,000 b. Rs.3,000 c. Rs.2,000 d. Rs.8,000
Read the given case study and answer the question number 105-108:
'Safe Journey Travel' is a forthcoming cab service. It was not easy for the organisers to
execute these services as the organisers knew that they are entering a highly competitive
market. They gathered information on existing cab services and changing customer
preferences and incorporated those observations into their operations. In order to reach the
customers quickly, they developed a customer friendly 'app' to book, track and trace the cabs
always. To create an environment of trust, all drivers were grouped into two shifts: 8 a.m. - 8
p.m. for female drivers and 8 p.m. - 8 a.m. for male drivers. GPS systems were installed in all
cabs to monitor their movements. There were different modes of payments services offered to
customers. The fare payment can be made by an e-wallet, through the 'Safe Journey Travel
Smart Card, by Cash on Delivery or by debit /credit card. As soon as the services were
launched, customers started liking it and feeling secure in o time this service became a grand
success.
105. Which of the following concept helped the company succeed?
a. Environment scanning b. Problem identification
c. Idea field d. None of these
106. Why is it important for Safe Travel Journey to scan the environment?
a. Organization gather information on changing conditions
b. The right information can determine an organization’s future viability
c. Both a and b
d. None of the above
107. Which of the following importance of environment helps in identifying threats and
opportunities in the market?
a. Identification of opportunities to get first mover advantage.
b. Formulation of strategies and policies
c. Tapping resources
d. Better performance
108. “As soon as the services were launched, customers started liking it and feeling secure in o
time this service became a grand success.”
Identify the importance of environment scanning stated in the above lines.
a. Tapping useful information b. Better performance
c. Better performance d. Image building
109. In a bid to send astronauts to Mars, US space agency Nasa has invited applications for four
people to live in a simulated Martian exploration habitat in order to prepare them for the real-
 life challenges of future missions to the red planet. Nasa started taking applications for
participants to live for a year in Mars Dune Alpha, a 1,700-square-foot Martian habitat created
by a 3D-printer that is inside a building at Johnson Space Center in Houston.
Identify the macro environment factor which has influenced Nasa to develop Mars Dune Alpha
a. Political b. Social c. Legal d. Technological
110. Lakshmi Menon was troubled to see the huge waste generated by the scrap material left
behind after stitching Personal Protective Equipment (PPE) gowns. These scrap materials
could not be recycled easily. When she saw this problem, she thought of a solution also. It
was to make lightweight bedrolls made from the scraps of the material. The bedrolls were
cheap and durable and within a short span of time, demand for these bed rolls increased
tremendously.
What concept is involved in the above case study?
a. Environment Scanning b. Problem Identification
c. Trend spotting d. Market assessment
111. 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?
a. No manufacturing involved b. Partial manufacturing
c. Complete manufacturing d. Complete outsourcing
112. 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?
a. Organisational plan b. Financial plan
c. Operational plan d. Marketing plan
113. 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?
a. Identify the target market b. Conduct SWOT analysis
c. Establish goals d. Define marketing strategy
114. Madhu Chandan started the first Organic Mandya store in 2015 on the Bengaluru – Mysuru
highway. Today it has grown into a Rs 25 crore turnover organic retail chain with eight stores.
By buying the agricultural products from the farmers and selling them at ‘Organic Mandya’
stores, Madhu has not only provided a direct market to the farmers, but also has built a Rs 25
14 crore turnover organic retail chain.
Which idea field has Madhu Chandan taken up?
a. Natural resources b. Service sector
 c. Trading related d. Existing products or services
115. 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?
a. Sole proprietorship b. Partnership
c. Private company d. Public company
116. Monik Ltd., was the market leader in the Mobile Phone industry in 2000. The company was
well known for its affordable phones. In 2007, a new company launched new Mobile models
with latest technologies and captured the market. Monik Ltd., did not expect this and lost the
entire market share and had to close their operations.
Which of the following SWOT analysis framework does this case indicate that Monik Ltd.,
failed to do?
a. Strengths b. Weakness c. Opportunities d. Threats
117. Hitesh, a fisherman, faced a lot of problems in selling the fish he caught. His entire community
was facing this problem and most of the time they had to dump the fish they caught back into
the sea. He read a newspaper article on how people have started ordering online for most of
the essentials. He spoke to his fellow fishermen about selling their fish online and started their
business with a small delivery truck and an app and slowly and steadily their business started
to flourish.
What trend has Hitesh spotted?
a. Read trends b. Watch trends c. Talk trends d. Think trends
118. Suganya wanted the younger generation to understand the nutritional value of traditional food.
Keeping this in mind, she started a ‘Eat To Fit’ - ETF restaurant and it was a successful
venture.
She opened many branches all over the state. Seeing her success, other restaurants followed
the same model but ‘ETF’ always had the major market share.
Which point of importance of the environment does this case imply?
a. Tapping useful resources
b. Better performance
c. Sensitisation of entrepreneurs to cope up with rapid changes
d. Identification of opportunities to get first mover advantage
119. Fit ltd., has become a well-known brand name in the field of fitness. Their products range from
exercise equipment to protein powders. The company decided to launch a new product in the
market which they believed will be a game changer. The company did a market survey
amongst people from various age groups to know the acceptability of the product.
What step of the creativity process is the company right now in?
a. Idea germination b. Preparation c. Incubation d. Illumination
120. Mallika was selling vegetables in her cart along with her mother. They were able to earn a
profit of around Rs.200 every day. Even though the amount was not substantial it was
sufficient for a decent living. Mallika often noticed that nuclear families where both husband
and wife go to work find it difficult to cook as cleaning and cutting vegetables took a lot of
time, so as an entrepreneur she started gathering information regularly and developed a new
product line of selling cut vegetables in hygienic packaging. Mallika used ............... to spot
this idea.
a. Read trend b. Think trend
c. Watch trend d. Talk trend