Enterprise Marketing — Entrepreneurship STD 12 Commerce — Question

Shilpi Ltd. started the manufacturing of herbal toothpaste. They researched that large number of established enterprises were also manufacturing the similar type of products. The company fixed the price of their toothpaste on 'cost plus method' of pricing. After some time the company realised that they were not getting good response regarding their toothpaste from the customers and the market share of their toothpaste was less than 0.5%. Since their product was new, they decided to change the pricing method so that initially they could get more customers.

1. Identify the new pricing method that was adopted by Shilpi Ltd.
2. State any two advantages of the new pricing method identified in (a) above.

Differentiate between horizontal merger and vertical merger.

'Angel Investors' and 'Venture Capital' are the two sources of raising finance for an entrepreneur. Explain the concept of both the sources stating one distinguishing feature of each.

Kareem after completing his XII class from his village school joined the course of electrician in an ITI in a town near his village. On completion of this course he tried for a government job but could not get the same. He, therefore, decided to work as a helper to a renowned electrician of the area. After working with him for two years, he decided to start his own electrician shop in the village. For this, he purchased equipment of Rs. 10,000 and hired a shop at a monthly rent of Rs. 2,000. He himself managed the shop.

1. Identify the kind of business organisation set up by Kareem.
2. State any four characteristics of the identified form of business organisation.

What is an Inventory?

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

How do hobbies help in generating business idea?

A business may either grow or die. Elucidate.

Pareto's law formed the basis for a technique. Name it.

Find out EOQ and number of orders to be placed during the year from the following information.

1. Annual consumption = 120 units
2. Buying cost per order = 20
3. Price per unit = 100
4. Storage cost as per cent of average inventory = 12%