Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

Raj Singh has started a restaurant on a National Highway in the name of 'Desi Dhaba' by spending Rs. 25,00,000. He invested Rs. 10,00,000 of his own and took a loan of Rs.15,00,000 from Dena Bank, @ 6% per annum. His monthly sales revenue is Rs. 17,00,000 and cost of goods sold is Rs. 9,00,000. He pays monthly salary of Rs. 3,00,000 to his employees. The tax rate is 25%.
You are required to calculate:

1. Return on Investment and,
2. Return on Equity for Raj Singh.

Explain the practical steps involved in setting up a Small-Seale-Enterprise at stage-II.

Priya, A graduate of horticulture from Agra University came across a barren land near Solan when she visited this place. Priya was found of mangoes and was inquisitive to understand the reason why mangoes could not be grown there. She was informed by the local authorities that the land was infertile for raising mangoes. She took this as a challenge and believed in its success. Best quality mangoes now mark the beauty of that barren piece of land.

1. Identify and explain the idea field' from where the idea has been generated.
2. Also explain and give one example each for four other idea fields which may generate useful product ideas.

'The process of generation of ideas' can be streamlined by developing an awareness about it and these work as the convenient frames of references for this'.

1. Identify the concept stated in the above lines.
2. Explain any three sources of the concept identified which are used by an Entrepreneur.

Which are the three situations related to manufacturing operations before the venture?

Interesting History Before World War II, development capital were primarily the domain of wealthy individuals and families. It was not until after World War II, that what is considered today to be true private equity investments began to emerge by the founding of the first two venture capital firms in 1946:

1. American Research and Development Corporation (ARDC).
2. JH Whitney Company.

ARDC was founded by George's Doriot, the 'father of venture capitalism' (former dean of Harvard Business School and founder of INSEAD), with Ralph Flanders and Karl Compton (former President of MIT), to encourage private sector investments in businesses run by soldiers who were returning from World War II. ARDC's significance was primarily that it was the first institutional private equity investment firm that raised capital from sources other than wealthy families.
ARDC continued investing until 1971 with the retirement of Doriot. In 1972, Doriot merged ARDC with Textron after having invested in our 150 companies.

1. Name the first two venture capital firms.
2. Who is known as the father of venture capitalism?
3. What was ARDC's significance?

What is the objective with which 'Industrial Reconstruction Bank of India' was setup? State any five functions performed by this Bank.

Which questions are answered by Production Plan?

Answer each of these questions in about two hundred and fifty words:
When an entrepreneur decides to go public and become a public company, he/ she tends to be in advantageous positions and get many benefit out of it . Explain the benefits.

Explain the four sources of obtaining funds under financial-resources.