Enterprise Growth Strategies — Entrepreneurship STD 12 Commerce — Question

Calculate break-even point for a textile shop on the basis of the given information. Garments sold are silk sarees, cotton sarees, suit materials, kids wear.
Selling prices (in ₹).
Silk sarees = ₹ 3,500/ saree, Cotton sarees = ₹ 900/ saree.
Suit materials = ₹ 1,800/ suit, Kids wear = ₹ 450/ wear.
Variable cost.
Silk sarees = 1,050 pieces, Cotton sarees = 270 pieces.
Suit materials = 540 pieces, Kids wear = 135 pieces.
Allocated fixed expenses.
Silk sarees = ₹ 2,45,000, Cotton sarees = ₹ 1,57,500.
Suit material = ₹ 63,000, Kids wear = ₹ 70,875.

What is a business plan? Explain its importance.

Aarav has decided to open a retail oultet for autoparts. His friends and family has advised him to establish certain goals so as to be able to judge the progress of his venture. But Aarav is of the view that goal setting will serve no purpose at all. Do you agree with Aarav? Give reasons for you answer.

Kavita has observed that there can be a good market for hand-knitted cotton and woollen trendy garments for small kids up to the age of three years. She thought of starting a small enterprise for the same. She also ensured that the enterprise will require 10 – 15 trained workers and an investment of rupees two lakhs. This will give 40% annual return on investment.

1. Quoting lines from the above para, identify and give the meaning of the entrepreneurship concept being stated in the above para.
2. Also, state the elements of the concept identified in (a) above.

Explain ABC Analysis of Inventory Control.
OR
Which items of inventory claim bulk of the values?

Siddharth is an innovative entrepreneur. He has decided to open an online portal which helps people to order food items 24 x 7. But, before implementing his project, he wants to investigate the marketability of his idea. He approached a venture capitalist to fund his investigation. Which form of finance is Siddharth availing of?

Differentiate between Standardized product and Customized product. Which channel of distribution is best suited for customized product/ goods?

Distinguish between Internal and External Expansion.

Aryan is running his own travel agency. Every month, he faces problems in meeting various operational expenses. His manager has advised him to prepare an operational budget but he thinks that budgeting is a waste of time. Do you agree with him? Why or why not? Which values are being violated by him by not preparing budget?

Raman is a potential investor who wishes to be a part of Equity Linked Saving Scheme (ELSS). He has given the particulars of two companies to seek your advice for investment. Compare the Return on Equity of the two companies and suggest to Raman where he should invest.

Particulars	Alpha Ltd. ₹	Beta Ltd. ₹
Total Capital Invested	20,00,000	20,00,000
Owned Funds	10,00,000	10,00,000
Interest on Borrowings from Bank	60,000	50,000
Cost of Goods Sold per month	7,00,000	8,50,000
Monthly Sales Revenue	10,00,000	15,00,000
Salaries	2,40,000	3,60,000
Utilities	75,000	1,00,000
Depreciation	5,500	6,000
Tax Rate	20%	25%