Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Mention the disadvantages of penetrating pricing method.

Which questions are answered by Production Plan?

Answer each of these questions in about two hundred and fifty words:
"An entrepreneur can raise the required capital in the primary market". Explain the various methods of raising the funds in the primary market by an entrepreneur.

Apoorva wants to start a new business near to her locality, for which she requires capital. State different types of national level and state level financial institutions from where Apoorva can access capital according to her needs and requirements.

Explain the concepts of working capital with the help of an example.

Explain the steps for the development of the tool of cash management that helps an entrepreneur in knowing how much cash generation and expenditure is anticipated over a chosen period of time in future.

'Air India has defaulted on working capital loan interest payment of 200 crores due to the financial crisis that the airlines is facing' confirms Air India sources on 21st May, 2011. Air India has high-cost loans worth about 40000 crores.
Air India is facing a tight financial situation and is in talks with lenders to restructure its debt of ₹ 40,000 crores. The lenders have agreed to reduce interest rates on part of the debt that is linked to overseas borrowings. The future of the remaining debt is still uncertain, especially because lenders are seeking a conversion of their debt into equity or equity like instruments. This is perhaps the first time that the national carrier has defaulted on its payments to banks. Sources said the airline had approached banks for more loans but they have declined to help because of the airlines' poor financial health.
And they say 'finance is difficult for new entrepreneurs.......... Its always a major concern.

1. Air India' has high cost loans worth about₹ 40,000 crores. From the above statement, identify the source of finance Air India.
2. Give one advantage and one disadvantage of raising finance through this source.
3. What will be the effect of conversion of debt into equity on the financial health of the company?

'One man control is best in the world if that one man is big enough to manage everything'. Explain this statement.

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.

Answer each of these questions in about two hundred and fifty words:
What do you think are the reasons for failure of merger and acquisition?