Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Which are the types of flows of channel of distribution?

'Golden Sweets' was a partnership firm, owned by Swati and Sushma. 'Asam Sweets' was another partnership firm owned by Vipan and Pranav. Swati and Sushma were sharing profits in 1:2 ratio and Vipan and Pranav were sharing profits in 2:3 ratio. Both the firms were situated in a famous market of Guwahati and were doing competitive business. Pranav the partner of 'Asam Sweets' observed that many of their customers were from far off areas and if branches of ‘Asam Sweets’ are opened in other parts of the city, the firm may earn huge profits. Similar was the situation of 'Golden Sweets'. One day in a function at a common friends house, the partners of both the firms knew that the internal expansion of their respective firms will be costly. Hence, they decided about the merger of the two firms. For this purpose, they decided to meet again to finalise the conditions of merger. Finally, on 1.1.2016 their respective firms were merged and a new firm ‘Asam Golden Sweets’ was formed with all the four partners Swati, Sushma, Vipan and Pranav. Their new profit sharing ratio was 1:2:2:3. During the year ended 31.12.2016, the new firm opened four new branches in different parts of the city and earned a profit of 30% on sales.

1. Identify the type of merger adopted by the two firms and also give its meaning.
2. Also give the names and meaning of two other types of mergers.

Explain any three features of a 'Co-operative Organisation'.

The question 'How Do We Get There' discusses which aspects for a firm related to the marketing plan?

On the basis of duration, classify the sources of finance.

Explain any four factors which affect the formulation of a financial plan.

Write down the objectives of IDBI.

In what sense are small enterprises more vulnerable than large ones?

Kamal Ltd. are manufacturers of textiles, having their plant in Surat, a city of Gujarat. Vastra Ltd. are the manufacturers of readymade garments and sell their products throughout the country. They also export their products to America and European countries. Vastra Ltd. source their textiles from Kamal Ltd. The management of the two companies decided to merge to have economies of large scale production.

1. Identify the type of merger entered into by Kamal Ltd. and Vastra Ltd.
2. Also, explain a type of merger other than the one identified in (a) above.

What should be the frequency of preparing a cash flow projection for a business plan?