Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

What is an Inventory?

An entrepreneur proposes to produce 500 pants per week for which he needs ₹ 30,000 for purchasing raw materials, ₹ 10,000 for payment of labour charges and ₹ 5,000 for purchase of a button machinery. His operating cycle is 3 weeks.
Calculate the working capital requirements of this entrepreneur and also give the meaning of 'operating cycle'.

Enumerate the disclosures required to be made in the prospectus of a company.

Annual quantity of jeans sold by a shop is ₹ 2,400 at the rate of ₹ 200 per month. Cost of placing an order and receiving goods is ₹ 500 per order. Inventory holding cost is ₹ 60 per annum.

1. What is the economic order quantity for the shopkeeper?
2. How many order is to be placed?

What is trading? What advantage does it possess over manufacturing?

Mahesh is a young man of 20 years. He has completed a tailoring course from an industrial training institute. He wants to start a big-size tailoring shop in a modern locality where young men and women working in various multinational companies live. He went to one of his friends who had completed a diploma course in textile designing to discuss about the opening of the tailoring shop. His friend advised him to prepare a written document describing formally all the relevant external and internal elements involved in starting a new venture. It will not only help in understanding the feasibility and viability of the proposed venture but also facilitate in assessing and making provisions for the bottlenecks in the progress and implementation of the idea.
State any six points of importance of the concept discussed by Mahesh with his friend.

Explain 'Propensity for Risk-taking' and 'Faith and commitment to a planning paradigm' as entrepreneurial competencies.

How can mergers and acquisitions help a firm to enter into new markets?

Product quality, customer satisfaction and company profitability are intimately 'connected'. Comment.

Vipul made his business plan with the help of an engineer. The plan was in the form of an entertaining slide show complemented with an oral narrative. When he showed his business plan to the bank officials, they were excited about the project and discussed various details. The business plan also had an exceutive summary and important graphs showing financial trends.

1. What type of business plan has been presented by Vipul?
2. Explain two more formats of business plans.