Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

A business may either grow or die. Elucidate.

Explain 'Marketing Strategies' and 'Financial Profile' as features of a Feasibility Plan.

‘Safe Wheelers’ is an upcoming cab service. The promoters knew that they are entering a highly competitive market. They gathered information on existing cab services and changing customer preferences and incorporated those observations into their operations. In order to reach the customers promptly, they developed an ‘App’ to book, track and trace the cabs 24 × 7. To create an environment of trust all drivers were grouped into two shifts: 6am.–6pm. for female drivers and 6pm.–6am. for male drivers. GPS systems were installed in all cabs to monitor their movements. The fare payment could be either by an e-wallet or through the ‘Safe Wheelers Smart Card’. As soon as the services were launched, they were a grand success.
Identify and explain the concept that helped the company to succeed.

‘Tata’ manufactured a motor car ‘Nano’ for common man which is very low in price. Name and explain the behavioural characteristic that develops the idea of ‘Tata’ into a viable and successful project.

Why is working capital called as circulating capital?

‘A channel of distribution consists of three types of flows.’ Explain the three flows

Beta Ltd. is a steel manufacturing company having its headquarters at Mumbai. It is the tenth largest steel manufacturing company of the world. Gama Ltd. are also steel manufacturers with their headquarters in Rangoon, the capital of Myanmar. For a long period the company (Gama Ltd.) had been facing workers unrest and it decided to sell its business to an international bidder. The highest bid for this was made by Beta Ltd. for ₹ 10 lakh crores. Afterwards Beta Ltd. realised that the assets of Gama Ltd. were overvalued and liabilities were under-assessed and hence the price paid by them was higher. The employees of the two entities have different corporate cultures and styles of leadership which led to the problem of co-ordination. Ultimately Beta Ltd. had to close its business.

1. Identify the growth strategy adopted by Beta Ltd.
2. Quoting lines from the above paragraph, explain any two reasons for the failure of Beta Ltd. after it took over the business of Gama Ltd.

Which common techniques are required to calculate the forecasting income?
OR
Discuss how each item of income statement can be forecasted.

A book shop sells pens 30,000 quantity per year. Demand is uniform. Purchase cost is 6 per pen. Holding cost per annum is 20% of purchase cost. Ordering cost is 500 per order. What should be the EOQ for the shopkeeper?