Entrepreneurial Opportunity — Entrepreneurship STD 12 Commerce — Question

Saurabh has just started his business of selling designer furniture. Being new to the business community, he approaches you to tell him about how to promote his business. So, tell him the elements of promotion mix.

Abhimanyu Industries Ltd. had a team of professionals and experts to draft a comprehensive yearly document with all the relevant details of internal and external elements in managing the venture. This document acts as a decision-making tool for the management.
The Chief Executive Officer of the company always pays special focus on one element of this document that ensures the orderly flow of materials from raw state to finished product with a proper system of quality control, as according to him ‘work your plan’ is more important than ‘plan your work’.

1. Identify the ‘comprehensive yearly document’ being prepared by Abhimanyu Industries.
2. How is this plan a ‘decision-making tool’ for the management?
3. Identify the element that is the priority of the CEO of the company.
4. Why is the element as identified in (c) important?

Explain the necessity of a stock exchange in the economy.

Distinguish between Internal and External Expansion.

Harish is working as the chief accountant in ABC Infrastructure Ltd. He came to know that the company is planning to announce an interim dividend. He purchased 2000 shares of the company at the market price of ₹215 with the expectation of an appreciation in the market price. When the price increased to₹ 537 he sold his holdings and made a handsome profit. Name the related concept which social values have been affected here?

Explain the steps for the development of the tool of cash management that helps an entrepreneur in knowing how much cash generation and expenditure is anticipated over a chosen period of time in future.

Sanora company produces and sells pottery chimneys (small clay outdoor fire places). The chimneys come in three models Small Basic, Large Basic and Carved (Ornately shaped and Carved). In the coming year Sanora sold 30,000 Small Basic Models, 50,000 Large Basic Models, and 20,000 Carved Models. Information on the three models is as follows:

	Small Basic	Large Basic	Carved
Sales price per unit	₹ 120	₹ 200	₹ 350
Variable cost per unit	₹ 70	₹ 150	₹ 275

The total fixed expenses of the company are 456500.
From the following calculate:

1. Sales Mix Ratio.
2. Overall Break-Even Point.
3. Product wise Break-Even Point (in Units).

Explain the various types of brands available.

Abhinav Chase Company produces and sells strings of colourful indoor/outdoor lights for holiday display to retailers. In the coming year, Alpha expects to sell 3,000 units of Alpha-Basic Colourful Indoor Lights and 1,500 units of Alpha Delux – Colourful Outdoor Lights Deluxe. Information on the two products is as follows:

Product	Alpha - Basic Colourful Indoor	Alpha Delux - Colourful Outdoor Lights
Price	120	200
Variable cost per unit	40	80

Total fixed costs are 140,000.
From the following calculate:

1. Sales Mix.
2. Over-all Break Even Point.
3. Product - wise break even point.
4. Break-even point in ₹.

   Product	Unit Price (₹)	Unit Cost (₹)	Unit Contribution Margin (₹)	Sales Mix	Gross Contribution Margin (₹)
   Alpha - Basic Colourful Indoor Lights	120	40	80	2	160
   Alpha =- Deluxe Colourful Outdoor Lights	200	80	120	1	120
   Gross Contribution Margin					280

How is financial plan useful to investors?
OR
The financial plan gives a clear picture of which aspects to the investors and the entrepreneur?