Bihar Board 12th Entrepreneurship Model Question Paper 2 in English Medium

Bihar Board 12th Entrepreneurship Model Papers

Bihar Board 12th Entrepreneurship Model Question Paper 2 in English Medium

Time: 3 Hours 15 Min
Marks: 70

Instructions for the candidates:

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
4. This question paper has two sections: Section – A and Section – B.
5. In Section – A, there are 35 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/ Liquid/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
6. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 Long answer type questions, out of which any 3 of them are to be answered. Each question carries 5 marks.
7. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 35 has four options provided out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each question carries 1 (one) mark. (35 × 1 = 35)

Question 1.
Is it necessary to give due consideration on internal resources before initiating a particular decision?
(a) Yes, it is necessary
(b) No, not necessary
(c) Necessary for External Resources
(d) None of the above
Answer:
(a) Yes, it is necessary

Question 2.
Which of the following is a factor affecting the identification of business opportunities?
(a) The volume of Internal demand
(b) Created opportunity
(c) Existing opportunity in the Environment
(d) None of the above
Answer:
(a) The volume of Internal demand

Question 3.
Learning processes involves.
(a) Drive
(b) Cue
(c) Response
(d) Drive, cue, and response
Answer:
(d) Drive, cue, and response

Question 4.
Subsidy is:
(a) Concession
(b) Discount
(c) Repayment
(d) None of these
Answer:
(c) Repayment

Question 5.
The business regulatory framework is concerned with what.
(a) Direction of Business
(b) Volume of business
(c) Regulation
(d) None of the above
Answer:
(c) Regulation

Question 6.
Do economic policies determine?
(a) Direction of Business
(b) Volume of Business
(c) Direction & Volume of Business
(d) None of these
Answer:
(c) Direction & Volume of Business

Question 7.
Short-term forecast involves a period of how many months?
(a) Twelve months
(b) Twenty four months
(c) Eighteen months
(d) Thirty-six months
Answer:
(a) Twelve months

Question 8.
Demand forecasting is termed as what out of the following?
(a) Marketing
(b) market demand
(c) demand and supply
(d) all of the above
Answer:
(b) market demand

Question 9.
Which of the following factors is to be considered while selecting a product or service?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) all of the above
Answer:
(b) Cost of production

Question 10.
Out of the following, what is essential: to study in the feasibility study?
(a) Cost
(b) Prince
(c) Operation
(d) All of the above
Answer:
(d) All of the above

Question 11.
Market demand is known as
(a) Demand forecasting
(b) Real demand
(c) Supply
(d) None of those
Answer:
(a) Demand forecasting

Question 12.
What creates imperfection in the market which ultimately increases the volumes of sales and profit?
(a) Innovation
(b) Promotion
(c) Marketing
(d) None of the above
Answer:
(a) Innovation

Question 13.
How will you formulate a general plan of Business?
(a) By production planning
(b) By cost planning
(c) By financial planning
(d) By doing all the above
Answer:
(d) By doing all the above

Question 14.
Which of the following is a problem connected with Business?
(a) Profit
(b) Money
(c) Sales
(d) Risk management
Answer:
(d) Risk management

Question 15.
On which out of the following the formulating of the general plan of a business depends.
(a) Project report
(b) Plant & production planning
(c) Marketing planning
(d) Financial planning
Answer:
(d) Financial planning

Question 16.
Lack of standardisation of the equipment is due to
(a) Internal constraints
(b) External constraints
(c) Government Barriers
(d) Regulatory Barriers
Answer:
(b) External constraints

Question 17.
The project cycle is not concerned with the following
(a) Pre-investment stage
(b) Constructive stage
(c) Normalisation stage
(d) Stabilisation stage
Answer:
(d) Stabilisation stage

Question 18.
Modernisation improves.
(a) Products
(b) Production
(c) Processes
(d) Capacity
Answer:
(d) Capacity

Question 19.
The gestation period is concerned with.
(a) Idea creation period
(b) Incubation period
(c) Implementation period
(d) Commercialisation period
Answer:
(c) Implementation period

Question 20.
What is required for fixed capital and working capital of any enterprise?
(a) Finance
(b) Marketing
(c) Planning
(d) None of the above
Answer:
(a) Finance

Question 21.
The term “fund” as used in fund flow analysis means
(a) Cash only
(b) Current Assets
(c) Current liabilities
(d) Excess of current Assets over current liabilities
Answer:
(d) Excess of current Assets over current liabilities

Question 22.
What affects the purchase of plant will have working capital?
(a) Decrease
(b) Increase
(c) No effect
(d) None of the above
Answer:
(a) Decrease

Question 23.
B.E.P. = ________
(a) \(\frac { FixedCost }{ \frac { P }{ V } ratio }\)
(b) \(\frac { FixedCost }{ Contribution } \times 100\)
(c) \(\frac { \frac { P }{ V } ratio }{ FixedCost }\)
(d) None of these
Answer:
(a) \(\frac { FixedCost }{ \frac { P }{ V } ratio }\)

Question 24.
P/V ratio = ________
(a) \(\frac { Contribution }{ Sales } \times 100\)
(b) \(\frac { Sales }{ Contribution } \times 100\)
(c) \(\frac { Contribution }{ Sales }\)
(d) None of these
Answer:
(a) \(\frac { Contribution }{ Sales } \times 100\)

Question 25.
Risk Capital Foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 26.
Technological Development and Infrastructure Corporation of India was established in the year
(a) 1975
(b) 1986
(c) 1988
(d) 1990
Answer:
(c) 1988

Question 27.
What is management?
(a) Science
(b) Art
(c) Art and Science both
(d) None of these
Answer:
(c) Art and Science both

Question 28.
The foremost need for development in a country is of
(a) Physical Resources
(b) Economic Resources
(c) Efficient management
(d) None of these
Answer:
(b) Economic Resources

Question 29.
The present production system in fact is
(a) Direct production
(b) Indirect production
(c) Primary
(d) Secondary
Answer:
(b) Indirect production

Question 30.
Out of the following which is the method of quality control?
(a) Inspection method
(b) The statistical quality central method
(c) Both “A” and “B” above
(d) None of these
Answer:
(c) Both “A” and “B” above

Question 31.
Out of the following which is the method of production?
(a) The direct method of production
(b) The indirect method of production
(c) Both “A” and “B” above
(d) None of the above
Answer:
(c) Both “A” and “B” above

Question 32.
Marketing Expenditure is a burden
(a) On Industry
(b) On businessmen
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 33.
The characteristics of a good brand are
(a) Short name
(b) Memorable
(c) Attractive
(d) All of these
Answer:
(d) All of these

Question 34.
The maximum wide scope is of
(a) Brand
(b) Labelling
(c) Packaging
(d) Trademark
Answer:
(a) Brand

Question 35.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Short Answer Type Questions

Question No. 1 to 18 are short answer type. Answer any 10 questions. Each question carries 2 marks. (10 × 2 = 20)

Question 1.
What is the relationship between opportunity and entrepreneur?
Answer:
The most important exception is the literature in management and organization theory on opportunity discovery or opportunity identification, or what Shane (2003) calls the “individual-opportunity nexus.” Opportunity identification involves not only technical skills like financial analysis and market research, but also less tangible forms of creativity, team building, problem-solving, and leadership. Entrepreneurship is an activity that involves the discovery, evaluation, and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, process, and raw materials through organizing efforts.

Question 2.
Give any three objectives of environment scanning.
Answer:
The following is the objective of Environmental scanning:

• Identification of strength
• Identification of opportunities
• Identification of weakness
• Identification of threat.

Question 3.
What is the feasibility study?
Answer:
A feasibility study is an analysis of how successfully a project can be completed, accounting for factors that affect it such as economic, technological, legal and scheduling-factors.

Question 4.
Explain any two steps in the Execution of setting up an enterprise.
Answer:
An entrepreneur has to take the following steps in order to set up an enterprise.

• Selection of line of business: The entrepreneur has to decide the type of business in terms of manufacturing trading or service, then he has to select the types of goods and services to be will produce and distribute.
• Size of the Unit: Decision regarding the size of the unit of very important. The optimum size is one at which the average cost per unit is minimum.

Question 5.
Mention any three features of planning.
Answer:
Three features of planning are the following:

• Planning is a primary function of management.
• Planning contributes to the objective.
• Planning is forward-looking.

Question 6.
What are the objectives of project appraisal?
Answer:
Following are the objective of Project Appraisal:

• To extract relevant information for determining the success or failure of a project.
• To apply standard yardsticks for determining the rate of success or failure of a project.
• To determine the expected costs and benefits of the projects.
• To arrive at specific conclusions regarding the project.

Question 7.
What is fixed capital?
Answer:
Fixed capital is also known as fixed assets which refers to that part of the capital which is invested in fixed assets viz., land, building, machinery, furniture and equipment, etc. The objective of purchasing then is to earn income from them on a long-term basis. These assets remain involved for a long time, thus, called fixed assets.

Question 8.
Define the ratio.
Answer:
Ratios are useful tools that help companies and investors analyze and compare relationships between different pieces of financial information across an individual company’s history, an industry, or an entire business sector. ‘

Question 9.
What is the profit-volume ratio?
Answer:
The profit volume (PV) Ratio is the ratio of contribution over sales. It measures the profitability of the firm and is one of the important ratios for computing profitability.

Question 10.
What are the sources to mobilise financial resources?
Answer:
Following are the sources of stabilising financial resources:

• Loan from Banks
• Bank overdraft
• Cash credit
• Short term Loan
• Commercial paper/Bill
• Discounting of Bills Receivables
• Trade credit, etc.

Question 11.
State the characteristics of fixed capital?
Answer:
Following are the characteristics of fixed capital:

• Fixed capital is capital invested in fixed Assets
• Fixed capital is required for promoting business and its ancillary activities
• Fixed capital is used to acquire fixed assets These assets have low Liquidity because they are not easily saleable
• Fixed capital has a long-lasting existence
• Primary sources of fixed capital are shares. Debentures and long-term loans
• Fixed capital is used to meet the long-term need of the business some of which like amalgamation, merger
• etc.
• Fixed capital is a source of wealth
• Fixed capital improves financial analysis
• It provides long-term business stability.

Question 12.
What is the importance of finance in business?
Answer:
The goal of any finance function is to achieve three benefits: Business Support service, lowest costs and effective control of the environment, money is the lifeblood of a business and finance is the nerve centre. Finance is required to promote or create a business gain assets, develop products, run market surveys advertise. The conventional view of finance focuses or being reactive, efficient, quantitative and risk-averse. Now innovative views focus on being vision-oriented, opportunity and growth-focused, intuitive and risk-taking.

Question 13.
What is the production design? Discuss its phases.
Answer:
Product design process: The set of strategic and tactical activities, from idea generation to commercialization, used to create product design, in a systematic approach, product designers conceptualize and evaluate ideas, turning them into tangible inventions and products. The product designer’s role is to combine art, science, and technology to create new products that people can use. Their evolving role has been facilitated by digital tools that now allow designers to communicate visualize, analyse and actually produce tangible ideas in a way that would have taken greater manpower in the part.
Generally, the following points will be considered while preparing product design:

• Standardisation
• Reliability
• Reproducibility
• Product simplification
• Product price
• Maintainability
• Sustainability
• Servicing
• Consumer Quality

Question 14.
Give any three objectives of the project report.
Answer:
Following are the three objectives of project Report.

• To evaluation of investment opportunity.
• It is necessary to present a report for taking financial help.
• The project report is a systematical point of view for making a decision about investment.

Question 15.
What do you mean by the cycle of working capital?
Answer:
Availability of enough working capital is indicative of liquidity of business and capacity to make prompts payment. Working capital is needed for making payment of day to day expenditure for meeting current liabilities and for availing benefit of cash discount.

Question 16.
What is the marketing mix?
Answer:
Marketing mix implies a combination of all marking elements or ingredients so that the objective of the enterprise may be realised. The marketing mix is the appointment of effort the combination the designing and the integration of the elements of marketing into a programme or mix which on the basis of the marketing forces will best achieve the objectives of an enterprise at a given time.

Question 17.
Define cost.
Answer:
I.C.M.A London has defined the term ‘cost’ as a noun as well as a verb. As a noun, it means “the amount of expenditure (actual or nominal) incurred on or attributable to a specified thing or activity.” As a verb, it means to ascertain the cost of a specified thing or activity. The specific thing or activity may be a product, job, services, process or any activity. Thus, the cost can be termed as the number of resources given up in exchange for some goods or services.

Question 18.
What are the opportunity cost and joint cost?
Answer:
Opportunity cost: The opportunity cost of goods or services is measured in terms of revenue which could have been earned by employing that goods or services in some other alternatives use.

Joint cost: When two or more than two products are being produced. Some separate cost has occurred for a separate product which called separate cost but some type of expenses cost occurred the same for all types of products which is called joint cost.

Long Answer Type Questions

Question No. 19 to 24 are long answer type. Answer any 3 questions. Each question carries 5 marks. (3 × 5 = 15)

Question 19.
What do you mean by product and product mix? What is the product dimension?
Answer:
Meaning of Product: A product is an item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at price. The price that can be charged depends on the market, the quality, the marketing and segment that is targeted. The product needs to be functionally able to do what it is supposed to, and do it with good quality, users and potential users must know why they need to use it, what benefits they can derive from it, and what it does difference it does to their lives.

Meaning of Product Mix: Products refers to anything which is offered to the public for sale. It may be a physical object, service or an idea, Product mix deals with decisions concerning varieties quality features, packaging, size, brand guarantee and services to be offered in respect of the firm’s product.
Dimensions of Products:

• Product line
• Product size
• Product output
• Product width
• Product quality and standard
• Product Brand
• Product Depth
• Product Labelling and Trademark
• Product packaging
• Product Designs.

Question 20.
What is meant by Brand? Explain the characteristics of a good brand.
Answer:
Meaning of Brand: A brand is a name, term, sign, symbol, or some combinations used to identify the products of one firm and to differentiate them from competitive offerings. A brand or trademark is an integral part of the symbol appearing on the product. A buyer identifies the product with the brand name and the seller gets a chance to earn goodwill in the market. According to the American Marketing Association. “A brand name is that part of the brand consisting of words or letters that comprise a used to identify and distinguish the firm’s offerings from those of competitors.”

The brand name gives the product a distinguishing mark which differentiates it from the products of the competing companies. For the buyers as well as sellers, the marketing process becomes more easily with the brand name. The brand mark s a symbol, design, or another element of a brand that can not be .poken. It could be recognised by sight only. For example, the symbol of ‘Maharaja’ of Air India, the inscribed polo layer on Ralph Lauren Polo Shirts, etc.

Branding is the management process by which a product is branded. It is a general term covering various activities such as giving a brand name to a product, designing a brand mark, and establishing and popularising it. Characteristics of Brand: A good brand name is helpful for advertising and publicity in the market. Name of the brand must be carefully selected. Even multinational marketing firms face a particularly acute problem in selecting brand names. A very good brand name in one country may prove disastrous in another.

However, the following are the essential characteristics of a good brand name:
Easy to Pronounce: The brand name should be simple, short and easy to pronounce for people of different cultures and for illiterate persons. Sometimes, people can not pronounce certain words correctly and then they feel hesitant to ask for that product e.g., Crompton, Raymond, Liberty, Woodland etc.

Easy to Remember: The brand which is easy to pronounce are also to remember. These products are easy to advertise.

Right Connotation: A brand should itself suggest something about the product-its use, quality, nature, purpose, performance or action, whenever a buyer sees or hears a brand name, some sort of image is formed in mind, e.g., Chavan Prash, Vicco Vajnardanti, Nescafe Coffee, Tiger Tea, Devdarshan Dhoop etc.
Legally Protectable: The brand name should be legally protected under the legislation. It should not contain any name based on geographical, historical or a name which is used by the general public in the general sense e.g., ghee, cola, transistor, etc. The name should be the creation of the producer like.
Nirma, Wheel in case of washing powder.
Lux, Hamam, PONDS, REXONA in case of toilet soaps. SUFFOLA, DHARA, SUN-FLOWER in case of vanaspati oil. FORHANS. PROMISE, CLOSE-PEPSODENT in case of toothpaste.
VIDEOCON, PHILIPS, SONY, ONIDA in case of TV. and VCR. GODREJ, KELVIN ATIOR, ALWYN,
VIDEOCON in case of Refrigerators etc.
Stability: Brand name should have a stable life and should not be affected by the change in fashion and style.
Uniqueness and Distinctiveness: The original name is one which is quite distinctive, which is not an imitation of others, e.g., RIN, SURF, PHILIPS, ONIDA, TATA, BATA, DCM, etc.

Question 21.
Briefly discuss the process of Planning.
Answer:
Process/Techniques/Steps of planning: Notwithstanding the size, status and nature of a business venture the process of planning is indispensable to all since its reality. However, identical planning can not be implemented in every case. Usually, business planning has to undergo the following stages:
(i) Fixation of Objectives: The first and foremost step is to define and determine the objectives of an enterprise otherwise the planning process can go haywire. The objectives may be on the long-term or short-term basis.

(ii) Collection and Analysis of Informations: First of all the objectives are defined and determined and thereafter for the realization of the objectives all the relevant information are obtained. Following an analysis of such information, the basis of planning is undertaken.

(iii) Selection of Alternative Sources: There are several ways of achieving the objectives. The evaluation of such options in terms of strategy, cost and effects need to be studied and from all the available alternatives the best one is to be followed.

(iv) Study the Limitations of Planning: planning is meant for the future. After deciding about the beautiful native its limitation should also be studied. After a review of the strategies for the realisation of the objectives, the problem hurdles in this way should also be evaluated by leaving a little space for any change.

(v) Formulation of the plan: In accordance with the objective here starts the process of planning. There need to move ahead in a sequence stepwise, after having evaluated the various aspects, a final shape is given to the future planning.

(vi) Formulation of sub-plans: With the help of the cardinal plan various sub-plans are undertaken to facilitate the achievement of the objectives. Such sub-plans are not independent entities rather they are the integral parts of the main plan.

(vii) Determining Time Limit: It becomes imperative to give a time frame to major and sub-plans. Every step of planning must be time-bound as which job is to be completed in how many days so as complete control on these activities could be ensured.

(viii) Evaluation: Planning is a perpetual phenomenon. It is not a one-time job and can never be concluded rather it warrants a consistent appraisal and it is also required to ensure compliance of actions with the planning.

Question 22.
Why time boundation is essential in planning?
Answer:
Business owners develop plans to reach their overall goals, and they usually find it useful to separate planning into phases. The different time frames of the planning process place the focus on time-sensitive aspects of the company’s structure and environment.

(i) Short Term Planning: Short term planning looks at the characteristics of the planning in the present and develops strategies for improving them, short term planning takes twelve months or less.

(ii) Medium Term planning: Medium-term planning usually for more than twelve months and fewer team 5yrs. It applies more permanents solutions to short-term problems. If there are quality issues, the medium-term response is to revise and strengthen the company’s quality control program.

(iii) Long Term Planning: Long-term planning organise for more than five years. In the long term, companies want to solve problems permanently and to reach their overall targets. Long-term planning reacts to the competitive situation of the company in its social, economic and political environment and develops strategies for adapting and influencing its position to achieve long term goals.

Question 23.
What do you mean by market assessment? What are the factors affecting market assessment?
Answer:
Market Assessment: Goods are produced and facilitate for providing services are created in anticipation of their demand the ultimate aim of these activities is that these reach these for whose these are meant. The commodities are needed for consumption and used by the ultimate consumers. The services are utilised by whose. Who was want to derive satisfaction out of them?

Factors Affecting the market assessment of follows:
(i) Satisfying customers needs: The concept of the market begins with the identification of the customer’s needs. It forces on producing goods or services commensurate with the wants of the customers. Thus it raises the standard of living of the customers.

(ii) Economic Development: Market plays an important role in raising the economic standard of a nation. It purchases and sale qualitative products of competitive rates not only for the internal consumption but also for more and more countries. On the other hand, it serves the citizens and on the other, it adds to the wealth of a nation. It tries to strengthen the foreign exchange reserves by exporting goods and services. Thus it strengthens a country on the economic front:

(iii) Accomplishing the Objectives of the sellers: Market helps in achieving the objectives of the sellers. The seller may be earning profit and public welfare. The market tends to find out what the customers want. The marketeers try to produce according to need felt of the ultimate customers. Thus the market plays an important role to achieve the two-fold objectives earning profit and satisfying customers.

(iv) Improves the standard of living: Market helps in raising the quality of life of common people and the standard of living by providing a new and improved variety of goods and services to them. It makes goods and services available at lower prices.

Question 24.
Define planning? What are its features?
Answer:
Planning: It is deciding in advance what to do how to do it, when to do it and who is to do it. It makes possible for things to occur which would not otherwise happen.
“Planning is selecting information and making assumptions regarding the future to formulate activities necessary to achieve organisational objectives.”

In words of Henri Fayol ‘Planning means to assess the future and make provision for it. The plan of action is at one and the same time the result envisaged in the line of action to be followed, the stage to go through the methods to use.
Features of Planning: The meaning of planning and its definition, as given above reveal its features, which may be stated as:
(i) The Basis function: Planning is the first function of management. It proceeds all other function viz. Organising, staffing, directing and controlling. Planning determines the objectives and course of action be followed without objectives and course of action, other functions are meaningless.

(ii) A continuity Activity: Plans need continuous review with the view to take cognisance of the nature of economics to keep an equilibrium in changing pattern of demand and supply. Involving co-ordination of different function of management and thus keep the business in perfect running condition, planning is a dynamic concept.

(iii) The activity of the cognitive domain: Planning relates to the cognitive domain. It is a domain of contemplation and thinking. Under planning, the managers think and arrive at a consensus of laying down ways and means to achieve the goal.

(iv) Efficiency increasing activity: Planning increase efficiency. Planned actions are always better than the non-planned ones. Planning establishes a system which helps in doing the job smoothly and quickly.

(v) Choice making activity: There may be different alternatives for finding a solution to a problem. Planning tends to choose the best course of action from different alternatives.

(vi) Based on forecasting: Planning follows forecasting. Forecasting is a technique of anticipating facts relating to the future. It is an intelligent guess of future. Planning is made on the basis of scientific predictions about the future.

(vii) Objective Oriented Activity: Planning gets inspiration from objectives. Koontz and O’Donnel have stated that “the purpose of every plan and all derivatives plan is to facilitate the accomplishment of enterprise purpose and objectives.”