Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Why it is said that" A venture capitalists investments are illiquid‖". Give reason.

An entrepreneur proposes to produce 500 pants per week for which he needs ₹ 30,000 for purchasing raw materials, ₹ 10,000 for payment of labour charges and ₹ 5,000 for purchase of a button machinery. His operating cycle is 3 weeks.
Calculate the working capital requirements of this entrepreneur and also give the meaning of 'operating cycle'.

Differentiate between:

1. Direct cost and Indirect cost.
2. Semi-variable cost and Variable cost.

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.

Ms. Rosy is a readymade garments manufacturer. Her Annual Usage rate is 225Pcs. The cost of placing each order is ₹ 8/- and the carrying cost is ₹ 4 per unit. Calculate the Economic Order Quantity (EOQ). How does calculating EOQ facilitate budgeting?

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?

Rohit sells his playstation to his friend at a profit of ₹ 1500. Is it a business activity? Explain any two characteristics of business.

What do you understand by venture capital?

Describe the schools of law under HUF.

What do you understand by capital market? How can the capital market in India be broadly classified into different categories?