Enterprise Marketing — Entrepreneurship STD 12 Commerce — Question

Explain the various inputs that will help into designing a sales budget.

Explain Joint Hindu Family/ Firm (HUFs).

Business is a continuous human economic activity with an objective to earn profit by producing, buying and selling goods and services. With the help of the statement, explain any four characteristics of business.
Earning profits by efficient use of resources, minimising wastage and not by exploiting consumers, conveys what types of values shown by the entrepreneur.

Harsh has come up with a innovative idea of school bags. He believes that this can bring a new way of thought in the minds of consumers with respect to school bags. He want to start the production of bags by setting up SSI in the industrial area. He should contact which financial institute for assistance in opening his innovative venture. Write the features of this financial institution.

Raghav, an entrepreneur realises that the enterprise he wants to start, has a potential risk of fire accidents because the production process poses such a threat. Should he develop strategies to:

1. Prevent the risk.
2. Respond to the risk.
3. Prevent as well as respond to the risk? Give reasons.

Amar is running a village industry of processing of fruits. He took loan from State Bank of India. Even after this loan he is not able to meet his financial requirements. He is now looking for someone who can re-finance his industry of rural area. He should contact which financial institution for this purpose? Identify and explain any three functions of this financial institution.

Calculate Return on Investment (Rol) and Return on Equity (RoE) on the basis of given information. You have newly started a beauty parlour business, you spend ₹1,50,000 to open the parlour of which you invested ₹70,000 of your own money and borrowed a loan for ₹80,000. Interest rate per annum is 7%. Sales revenue per month is₹ 80,000. Cost of goods sold is₹ 30,000 per month. Fixed expenses is ₹30,000 (salary ₹20,000, rent and utility ₹10,000), depreciation₹ 3,000 and tax @ 14%. What values are exhibited by the business by being able to achieve such ratios?

Sonu and Monu completed their education from Delhi University. Sonu lived in near the University, whereas Monu had to go back to his village in Assam. Both of them wanted to start their own business. Since the Government announced ban on the use of polythene bags, an idea struck them to start a jute bag manufacturing business. Sonu thought that he would get the advantage of University area for marketing the jute bags and will earn good profits. He also had necessary funds. Therefore he started manufacturing the bags immediately. He was not having any experience of manufacturing jute bags. He also sold the bags on less margin due to tough competition. As a result, his business failed after a few years. On the other hand, Monu was happy because the raw material was available to him at a very low cost in Assam and people of the village were ready to work at low wages because of less job opportunities. Not only this, before starting the business Monu had researched about the cost-structure, the market, the competitors and the strengths and weaknesses of the business.
Based on the above paragraph, identify and explain any two causes of failure of Sonu’s business in comparison to Monu. Also, state any two values which Monu had communicated to the society through his business.

Swati and Divya are professional fashion designers and are friends also. Swati lives in Calcutta whereas Divya lives in a village in Bihar.The young girls of the village used to get their clothes stitched as per the prevailing fashion from the near-by town. This gave Divya an idea to start a boutique in the village. She discussed about it with Swati who was already running a Boutique in Calcutta and earning good profits. Swati guided Divya for setting the boutique. Before starting the boutique, Divya trained young girls of her village who knew stitching. Not only this, she called the women of her village who were sitting idle at their homes to help the young girls in cutting, hamming, putting buttons and other small related activities. All the women of the village were happy as they started earning and were economically helping their families. Divya also started earning good profits. The goodwill of Swati was also increasing because of her good work and customer satisfaction. For earning more profits she opened four new boutiques in the near - by areas. The teams who were managing these boutiques were not efficient. Many customers complained about the quality of stitching and the material used for designing etc. Swati was very busy and could not control the activities of the new boutiques. It also damaged the image of the old boutique and resulted into declining of her profit. After few months her business failed, and she had to shut-down all the boutiques.
Based on the above paragraph, identify and explain any two causes of failure of Swati's boutiques. State, any two values which Divya communicated to the society.

‘Dhanwantri Ayurveda Ltd. (DAL)’ are the manufacturers of soaps, detergents, dental care products, cosmetics, grocery products and even medicines based on Ayurveda. It has grown since its inception. The reasons for the growth and popularity of DAL can be attributed to the fact that it started its operations at a time when the Government in the country is moving towards making the country self-reliant. DAL is following government initiatives like ‘Make in India’ campaign. Government is promoting Ayurveda through the ‘‘Ayush Ministry’’ that promotes Yoga, Ayurveda and other traditional and complementary medicines. This gives DAL a huge boost as it itself claims to be an Ayuredic company. DAL’s input cost increases or decreases based on the taxation policies of the government. Implementation of Goods and Services Tax (GST) has benefited DAL as the genre of DAL is not taxable. With inflation rate increasing continuously, people are looking for cheaper and effective substitutes which are provided by the extensive range of products provided by DAL. The people of India are becoming more health conscious and want to consume organic products. The company focuses only on retailing in India through its own retail chain stores and also through online mode through its E-commerce website AyurPro. The detergent products of the company are non-polluting. The packing material used for the products is also biodegradable. DAL has a separate department to prosecute and get penalized those who misrepresent its brand and its name.
Quoting lines from the paragraph, analyse the success of Dhanwantri Ayurveda Ltd. (DAL) on the basis any four points of the PESTEL Model.