Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Which ratio establishes the relationship between contribution and sale value?

Without having time frame for achievement of goals, you reach no where? Do you agree? If yes, justify.

Explain the importance of unit of sale as a management tool.

Name the factors which affect an operational plan.

What is trading? What advantage does it possess over manufacturing?

Ram was very thrilled with his new job. He was placed in a small factory manufacturing door knobs as a stock keeper. After a few days, while taking stock he understood that nuts and various small parts constituted majority of the cost of production. After some time, the firm went into a loss and the owner decided to look into the various factors that could have constituted the loss. Ram expressed his concern that inventory was not properly maintained and that there are various techniques which are involved and if followed properly the company will not be in a loss. The owner agreed to the suggestion. He also decided to take help from some specialized government institution initiate steps for technological up gradation, and modernization of existing units.

1. What technique was suggested by Ram? Explain it.
2. Which specialized financial institution is the owner thinking of approaching and state any one of its objectives?

Bhoomika started a pottery unit employing differently abled people to make and sell sculptures made of clay. She also made sure that the material she used is easily decomposable. During the months of September and October she increased the scale of production as the festival of Diwali was round the corner.
Identify the component of business environment at a macro level that is reflected in the above situation. Also identify any two values communicated by Bhoomika through her working.

The footwear industry in India is dominated by ‘B-relax Footwear’. ‘B-relax Footwear’ procures 70% of its raw material from ‘Polymers Ltd.’ The major production of ‘Polymers Ltd.’ is plastic chips, PU foam and elastic which is used by ‘B-relax Footwear’ in its manufacturing processes. After due diligence, they decide to merge with each other. If they merge, ‘B-relax Footwear’ doesn’t need to look for a vendor and sourcing raw materials would be seamless. On the other hand, as a result of the merger, ‘Polymers Ltd.’ doesn’t need to worry about the sales and marketing. All they need to do is to improve their processes to produce better raw materials for ‘B-relax Footwear’. After the merger the combined entity will be known as ‘B-relax Inc’.

1. Identify and explain the type of merger between ‘B-relax Footwear’ and ‘Polymers Ltd.’
2. Why is due diligence required before merger ?
3. Which is the most dominant reason for this merger ? Explain.

From the following information calculate:

1. Gross working capital.
2. Net working capital.

Accounts receivable ₹ 2,00,000; Prepaid Expenses ₹ 20,000; Cash ₹ 60,000; Marketable Securities ₹ 40,000; Machinery ₹ 1,00,000; Bills Payable ₹ 40,000; Expenses Payable ₹ 80,000; Account Payable ₹ 80,000; Debentures ₹ 4,00,000; Stock ₹ 80,000.

Michael Porter suggested some primary activities for an enterprise. What are they?