Entrepreneurial Opportunity — Entrepreneurship STD 12 Commerce — Question

'It is an organised mechanism meant for effective and smooth transfer of financial resources from the investors to the entrepreneurs.'

1. Identify the mechanism and list its different types.
2. Name the association of persons established under the mechanism identified in (a) above. Also, explain any four points of its importance to investors.

Explain the benefits of budgeting. Give some value points.

A beauty parlour had varying number of customers during 5 weeks. This information and the total weekly billing are in the following table. What are the 'unit of sale' and the unit price in this case? the cost of goods sold or variable cost is 60% of the sale price, calculate the 'unit cost' and the gross margin' per unit of sales.

Weeks	Number of customers	Total amount billed (₹)	Average amount billed (₹) per customer
Week 1	10	1,000	100
Week 2	17	1,445	85
Week 3	13	923	71
Week 4	22	5,082	231
Week 5	18	3,150	175
Total	80	11,600

Explain the factors determining the working capital requirements.

Read the following text carefully:
Mr. Prasad started a cakes and confectionery business in 2010 by the name of ‘Happiness to Order’. In no time his bakery became the talk of the town for customized cakes as per the occasion. He used high-quality liquid glucose and icing sugar to make the fondants for his cakes. Seeing the popularity, he opened 4 more outlets in different localities.
Over the years people have become cautious of what they eat and are cutting down on sugar. The fondants that were once the USP of his bakery were now losing market to the competitors as they introduced a healthier version of bakery products, especially cakes without gluten or sugar but almond flour, oats flour, etc.
His cooks advised him to experiment with healthier options which Mr. Prasad was reluctant to try. He could not adapt to the changing environment and all 5 outlets started running into loss. Eventually, he decided to close the business. He owes ₹ 15,00,000 to his supplier firm whom he had taken goods on credit in the past year.
On the basis of the given text and common understanding, answer the following questions:
(I) Mr. Prasad’s business funds are insufficient to repay the debts, can the supplier claim Mr. Prasad’s assets? Give valid reasons in support of your answer.
(II) “Environment scanning is important for an entrepreneur.” Justify the statement, giving valid reasons in support of your answer.

Answers to these questions should not exceed 250 words:
What is working capital? What is the need for a working capital?

The Ruchi Soya Company manufactures three products - product X Soya Paneer, product Y Soya Chunks and product Z Soya milk. The variable expenses and sales prices of all the products are given below:

	Soya paneer	Soya chunks	Soya milk
Sales price per unit	200	100	50
Vaiable cost per unit	100	75	25

The total fixed expenses of the company are 50,000 per month. For the coming month. Monster expects the sale of three products in the following ratio:
Product X: 20%;Product Y: 30%;Product Z: 50%
From the following information calculate:

1. Weighted average selling price.
2. Weighted average variable cost.
3. Product wise break-even point of Ruchi Soya Company in units and rupees for the coming month.
4. Calculate new break-even point if there is increase in selling price of each price by 10%.

How many choices are there to start a business by a business man? Explain each of them.

Distinguish between Shares and Debentures on the basis of the following:

1. Status of the Investor.
2. Return Rate.
3. Convertibility.
4. Right to Vote.
5. Redemption of Capital.
6. Charge on Assets.

Nandini, Purvi and Smrithi are establishing a manufacturing company, "NPS Co”. that makes two brands of writing pens; The Elite Gel Pen and the Delite Ball Point Pen. They plans to sell the pens to retailers all across the county. They decided to sell the Elite Pen to retailers for 20 and the Delite Ball Point Pen for 10. Through market research, NPS Co. estimates 40% of his customers (retail outlets) will purchase the Elite Pen, while the remaining 60% of customers (retail outlets) will purchase the high quality Delite Ball Pen. The cost to manufacture each Elite Pen is estimated to be 5 while the cost to manufacture each Ball Point Pen is forecasted at 3. These manufacturing costs are the only variable costs incurred by the company. In addition, NPS Co. forecasts the company's fixed costs for the upcoming year at 120,972 (assumed).From the following information calculate:

1. Overall Break-even point in units.
2. Product-wise Break-even point in Units.
3. Product-wise Break-point in ₹.

Verification by Income statement.