Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Differentiate between cash flow projection and cash flow statement.

Milli Company sells two products (Grass Catcher Attachments): Mulching mowers priced at ₹ 400 and riding mowers (Power) priced at ₹ 800. The variable costs per unit are 325 per mulching mower and ₹ 600 per riding mower. Total fixed expense is 96,250. Milli's expected sales mix is three mulching mowers to two riding mowers. (3:2) Required:

1. Calculate contribution margin of mulching and riding mowers based on the sales mix, and calculate the gross contribution margin.
2. Calculate the break-even point in units for mulching mowers and for riding mowers.
3. Check your answers by preparing a contribution margin income statement.

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

Indian Franchise Boom
For small and first time entrepreneurs in India, taking up franchise of a well-established brand is a good proposition. Buying a franchise of an established brand is a good alternative to starting on a new idea from scratch or could offer a faster way to take an existing business to the next level. To list a few:
Gift a flower...and a cake...and a candle...
Ferns N Petals, founded by Vikas Gutgutia, a Delhi based company and the leading brand of floral boutiques in India is marked as a one-stop-shop for all flower requirements, whether it is for daily or occasional gifting, for floral decoration in weddings, corporate events or for an individual parties. Floral boutiques are aesthetically designed and its air-conditioned outlets reflect style and high taste to cater to elite customers.
FNP's floral boutique offers a vast variety of fresh cut flowers and unique flower arrangements, artificial and dry flowers, and an exclusive range of object d'art such as scented candles, candle stands, imported Italian glass vases, wooden gift accessories with intricate carving, photo-frames, miniature exportable gift items, fragrance items based on aromatherapy and potpourris, etc. These boutiques offer a vast variety of exquisite flower arrangements and displays to match the distinct needs and tastes of the customers. Growth of FNP, too, is attributable to franchising.
Food Courts Work Well with Franchising Models
Haldiram Franchise-A Profitable Business Opportunity
The food and beverage industry has not experienced any crunch, mainly because the people are spending money in a big way on eating out, together with entertainment. The Indian economy is growing rapidly, automatically creating more room for the growth of this industry The Haldiram Marketing franchise is associated with sweets and namkeens for the discerning consumers for the past six decades in India and across the world. The food and beverage franchise made a modest start in the beginning of 1941 in Bikaner in the state of Rajasthan in India. According to the sweet and savoury products franchise, sweet and salt are opposite to each other, but they perform wonders on the taste buds.
The Haldiram Marketing franchise uses both sweet and salt in its foods, with mithais (sweets) and namkeens (salty snacks). This unique concept of the food and beverage franchise has made it to be a leader in the sweet industry and it has also maintained this position for many years. The sweet and savoury products franchise has been synonymous with sweets, similar as Cadbury is to chocolates. The Haldiram Marketing franchise can by default be termed as taste of tradition of India. The sweet and savoury products franchise has certain prospective markets, such as those in China, Russia, the United Kingdom, Madagascar and Ukraine, for promoting and marketing the brand of Haldirams.
Among various food joints from domestic sector, Haldiram franchise has carved a separate niche for themselves. Haldiram made a humble beginning, when it commenced its business in Bikaner, in the State of Rajasthan. Since then, the food and beverage franchise has witnessed phenomenal growth and is currently a renowned manufacturer of sweets across the globe. The sweet and savoury products franchise has a chain of restaurants and is also anticipated to start amusement parks.
The Haldiram franchise is the flag bearer of the traditional Indian sweet. This food and beverage franchise was started by Shri Ganga Bisanji Agarwal alias Haldiram Agarwal. He is the grandfather of Shri Shivkisan Agarwal, who was responsible for the fame and success of the sweet and savoury products franchise. Moreover, he made the brand of Haldirams a household name in the Indian subcontinent.
Hotel Saravana Bhavan
Hotel Saravana Bhavan is the largest vegetarian restaurant chain in the world, founded in 1981 by Rajagopal, offers South Indian cuisine. They have more than 20 outlets in Chennai, 33 in India and 47 around the world (including USA, Canada, United Kingdom, France, Germany, Singapore, Malaysia and the Middle East. There are plans to open 5 star vegetarian hotels. This chain is also an example of successful model of franchising.
Jumboking
Jumboking began its journey to brand the Vada Pav on 23rd August, 2001. Jumboking in its 12th year of operations is a pioneer in the food retail company in India in the Quick Service Restaurants (QSRs) segment.
Inspired by western models and applying it to Indian food, Jumboking believes that the common man has the constitutional right to get hygienic food at an affordable price!
Jumboking has been founded by Dheeraj Gupta. Jumboking has a team of people spanning the functional areas of operations, business development, franchisee relations and marketing.
They have 51 operational outlets across India. It plans to put up a total of 500 stores by December 2018. Says Dheeraj Gupta, Founder and MD Jumboking, 'We feel the Indian market can support more than 1000 Jumboking stores'.
The company has appointed City Master Franchisees/ single unit franchisees in Aurangabad, Mumbai, Bengaluru, Delhi, Indore, Raipur, Amravati, Goa and Mysore.
Examples of other franchises which are taking India and the world by storm include Chi Kitchen and Bar (cuisine), Mahindra First Choice Wheels (used cars), Van Heusen (clothing), EduKart.com (education), Koutons Retail (fashion), The Yellow Chilli (restaurant chain) and VLCC (beauty and wellness).

1. Who are the target customers of 'Ferns N Petals?
2. Which factor attributes to the success of Ferns N Petals?
3. Who is responsible for the fame and success of Haldiram?
4. Which type of franchise does Haldiram offer?
5. Which is the largest vegetarian restaurant chain in the world?
6. What does 'Jumboking' believe in?
7. Which is the common factor linking the above four examples?

Distinguish between Shares and Debentures on the basis of the following:

1. Status of the Investor.
2. Return Rate.
3. Convertibility.
4. Right to Vote.
5. Redemption of Capital.
6. Charge on Assets.

Give the main provisions of the Shop & Establishment Act.

Nandini, Purvi and Smrithi are establishing a manufacturing company, "NPS Co”. that makes two brands of writing pens; The Elite Gel Pen and the Delite Ball Point Pen. They plans to sell the pens to retailers all across the county. They decided to sell the Elite Pen to retailers for 20 and the Delite Ball Point Pen for 10. Through market research, NPS Co. estimates 40% of his customers (retail outlets) will purchase the Elite Pen, while the remaining 60% of customers (retail outlets) will purchase the high quality Delite Ball Pen. The cost to manufacture each Elite Pen is estimated to be 5 while the cost to manufacture each Ball Point Pen is forecasted at 3. These manufacturing costs are the only variable costs incurred by the company. In addition, NPS Co. forecasts the company's fixed costs for the upcoming year at 120,972 (assumed).From the following information calculate:

1. Overall Break-even point in units.
2. Product-wise Break-even point in Units.
3. Product-wise Break-point in ₹.

Verification by Income statement.

Explain the factors that help an entrepreneur en to identify a product.

Who can open a Current Account?

What do you mean by Break Even Point? Explain its importance.