Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Write the meaning of product identification in terms of business opportunity.

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.

Explain the role of financial planning in financial management.

What do you understand by sales mix?
State the assumptions made for the calculation of breakeven point for sales mix.

What is demand analysis?

Answer each of these questions in about one hundred and fifty words:
State the nature of money market. Who are the major participants in the money market?

What is seed capital? Give example.

What is a franchise agreement? List out its main components.

What do you mean by financial management?

Naman, Arpit and Ramesh are in a partnership business and operate a retail jewellery store. They plan to prepare a budget for the year 2015-16 but since, they are preparing a budget for the first time, explain to them the different steps of the budgeting process. Which value is exhibited by them for preparing a budget?