Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Enlist the formalities for starting a business in India.

Explain the factors determining the working capital requirements.

What are the disadvantages of franchising to the franchisee?

Explain the following features of a cooperative society:

1. Democratic management
2. Capital and return thereon
3. Distribution of surplus

Explain the main objectives of financial management which is helpful to the enterprise? (Give four value points)

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.

What is manpower planning? Why is it necessary for every business unit?

Each type of business differs in which terms or aspects?

Define budgetary control. State how "budgetary control” helps an entrepreneur?

Cooperative organisation is not desirable structure to start as new venture for an entrepreneur. Why?