Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

What is patenting? What are the inventions which are patentable?

Give one example of Partnership.
OR
GROWING TREND PARTNER UP! Give one example in support of this statement.

Why capital markets are the most O important source of raising finance for the entrepreneurs?

What is trade secret? Give examples.

A sound sales strategy has certain criteria. What are they?

Distinguish between Budget and Budgeting.

Bigul Chaturvedi started a School bag business with his brother. Both were very excited about the new venture. With meticulous planning and a lot of hard work, they were able to sell 1,000 bags in the first year. But they did not earn any profit. Both were happy because-because they were not at loss and revenue generated was equal to the cost. Now they were moving towards earning profit in the second year.

1. Identify the component of financial plan discussed above.
2. By giving any four points state how this component is useful for the entrepreneur.

How many sources of funds are available for arranging funds for business enterprises?

Prerna is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop, selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, for better management of the business she is thinking to convert her sole proprietorship into some other form of business. She also has plans to open branches countrywide. However, she is afraid of the fact that in case the business incurs losses, her personal property may be called upon to pay the business debts. She is also feeling that she may not be able to effectively manage a large business because of her deteriorating health.

1. Identify and explain the features of sole proprietor business highlighted in the above case.
2. Also suggest to her the form of business organisation which will help her in continuing her business, stating reason in support of your answer.

“Often times, a company will improve or change their existing products”. Give reasons.