GROUP-A (Answer any Ten)
(Each question carries 2 marks: 1 for the correct option, 1 for explanation)
1. (i) c) Creativity
Explanation: Creativity enables entrepreneurs to come up with innovative ideas and
solutions, which is a key to business success.
2. (ii) b) Identifying business opportunities
Explanation: The core role of an entrepreneur is to identify and exploit business
opportunities in the market.
3. (iii) c) Sole Proprietorship
Explanation: Sole proprietorship is the simplest form of business owned by one
individual.
4. (iv) c) Strong market demand
Explanation: A promising business idea usually targets a market with strong demand
for the product or service.
5. (v) c) Product development
Explanation: Product development is part of the business operations, not a standard
component of feasibility study.
6. (vi) c) To outline the operational structure
Explanation: A business plan's primary objective is to define the business model and
structure.
7. (vii) d) Differentiation
Explanation: Differentiation is a marketing strategy, not an exit strategy.
8. (viii) a) Employee using entrepreneurial skills
Explanation: An intrapreneur behaves like an entrepreneur while working within a
larger organization.
9. (ix) c) Strength Weakness Opportunity Threat
Explanation: SWOT analysis is a strategic tool used to identify internal and external
factors affecting the business.
10.(x) b) Equity Capital
Explanation: Equity capital involves raising funds in exchange for ownership rights.
11.(xi) b) Company Description
Explanation: This section of a business plan outlines the organization structure and
roles.
12.(xii) a) Registration with the Department of Industry
Explanation: Registration is a mandatory legal requirement to operate a business
officially in India.
13.(xiii) b) Getting easy access to loans and government schemes
Explanation: MSME registration helps businesses avail benefits like loans,
subsidies, and government incentives.
14.(xiv) c) Start-Up
Explanation: DPIIT defines a start-up as an entity less than 10 years old with a
turnover under Rs.100 crore.
15.(xv) b) Venture capital
Explanation: Venture capital is a form of equity funding where investors provide
capital to start-ups with high growth potential.
GROUP-B (Answer any Five questions)
2. a) What is an enterprise?
An enterprise is a business or company set up for commercial purposes, engaging in the
production and sale of goods or services.
b) Important features:
● Innovation
● Risk-taking
● Resource management
● Goal-oriented
● Economic activity
c) Difference between entrepreneur and manager:
Feature Entrepreneur Manager
Role Creates a business Runs the business
Risk Assumes risk Minimizes risk
Vision Long-term Short to medium-term
3. Explain Sole Proprietorship
a) Features:
● Single ownership
● Easy to form and dissolve
● Direct control
b) Advantages:
● Full profit to owner
● Quick decisions
● Minimal legal formalities
c) Disadvantages:
● Limited capital
● Unlimited liability
● Limited growth potential
4. Legal Requirements Before Starting a Business in India
● Business structure selection
● Registration with Ministry of Corporate Affairs (MCA)
● PAN, TAN, and GST registration
● Trade license and shop establishment license
● MSME/Udyam registration
● Compliance with labor and environmental laws
5. a) Ways to Raise Capital:
● Bootstrapping
● Angel investors
● Venture capital
● Bank loans
b) Government Initiatives:
● Startup India
● MUDRA Yojana
● Atal Innovation Mission
● Stand-Up India Scheme
6. a) What is a business plan?
A business plan is a document outlining the vision, mission, objectives, market analysis,
financial forecasts, and strategies of a startup.
b) Contents:
● Executive summary
● Company overview
● Product/service details
● Market analysis
● Marketing plan
● Operational plan
● Financial projections
7. a) What is an investor pitch?
An investor pitch is a brief presentation to convince potential investors to fund a startup.
b) Importance:
● Attracts funding
● Builds investor confidence
● Clarifies business goals
c) Inclusions in Pitch Deck:
● Problem and solution
● Business model
● Market opportunity
● Financials
● Team and traction
8. a) Full form of MSME:
Micro, Small and Medium Enterprises
b) Process & Benefits:
● Register on Udyam portal
● Submit Aadhaar and PAN
Benefits:
● Access to credit
● Subsidies and incentives
● Priority in government tenders
● Lower interest rates
9. a) Types of Resources:
● Human resources
● Financial capital
● Technology
● Raw materials
● Infrastructure
b) Problems Faced:
● Limited funding
● Regulatory hurdles
● Talent acquisition
● Market competition
● Technological challenges
