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Entrepreneurship 1 Marks Question

Entrepreneurial Planning · CBSE STD 12 Commerce (CBSE - English Medium). 138 questions.

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Question 11 Mark
Distinguish between 'Partnership' and 'Private Limited Company' on the basis of ‘maximum number of members'
Answer
Basis
Partnership
Pvt. Ltd. Co.
Max no. of
members
Banking 10
Others 20
50 excluding
excluding
Alternate Answer
If the student has given according to the Companies Law Amendment Act,2013
Basis
Partnership
Pvt. Ltd. Co.
Max no. of
members
100
200 excluding
employees
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Question 21 Mark
Differentiate between 'Value-Added-Tax' and 'Sales tax.'
Answer
Value-Added-Tax
Sales Tax
(Value-Added Tax) is collected by all sellers in each stage of the supply chain. Suppliers, manufacturers, distributors and retailers all collect the value added tax on taxable sales. Suppliers, manufacturers, distributors, retailers and end consumers all pay the VAT on their purchases.
Sales tax is collected by the retailer when the final sale in the supply chain is reached via a sale to the end consumer. End consumers pay the sales tax on their purchases.
 
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Question 31 Mark
Vishal was working with Abhinav, a new entrepreneur, as a Production Manager. For smooth and co - ordinated flow of wark he had to pay attention towards various elements. To ensure predetermined quality of products he had to compare the performance with established standards.Identify and state the elements being discussed above which is related to one of the components of a 'Business Plan.'
Answer
Inspection.
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Question 41 Mark
Define a 'Co-operative Organisation.'
Answer
Co-operative Societies Act 1912 defines it as a 'Society which has its objectives as the portion of economic interests of its members in accordance with co-operative principles.'
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Question 51 Mark
List any two categories of persons that are required to obtain registration from 'Central Excise Department'.
Answer
(Any Two)
  1. Every manufacturer of dutiable excisable goods.
  2. First and second stage dealers or importers desiring to issue Cenvatable invoices.
  3. Persons holding bonded warehouses for storing non-duty paid goods.
  4. Persons who obtain excisable goods for availing end-use based exemption.
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Question 61 Mark
Distinguish between a 'Joint Stock Company' and a 'Joint Hindu Family Business' on the basis of 'liability of its members'.
Answer
In case of a Joint Stock Company, the liability of members is limited whereas in case of HUF liability of Karta is unlimited and that of other members is limited.
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Question 71 Mark
State any two factors included in 'level of operation' while identifying a feasible product.
Answer
Quantity to be supplied to the market, expertise, skill and labour.
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Question 81 Mark
Give any two examples of opportunity costs.
Answer
Two examples of opportunity costs:
  1. A building where certain part remains unutilized which could have been rented.
  2. The machinery remains underutilised for certain period which could have been leased.
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Question 91 Mark
Define ‘cost’.
Answer
Cost refers to the amount of expenditure (actual or notional) incurred on or attributable to a given thing.
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Question 101 Mark
State any two limitations of owner’s fund.
Answer
Two Limitations of owned funds are:-
  1. If the growth prospects and profit earning capacity are not high, it is difficult to raise owners funds.
  2. The amount of Owners funds depends upon the the number of persons who are ready to take the risk of investing their personal savings.
  3. Dilution of control takes place as holders of owned funds have voting rights.
  4. The cost of raising owned funds is not fixed and known as high profits leads to higher dividends.
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Question 111 Mark
What is meant by ‘Operational Level Planning’?
Answer
Operation level planning refers to specific projects and programmes. It may be regarding budgeting, specific event or particular process. The level may vary but the process of planning remains the same.
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Question 121 Mark
Distinguish between "Partnership' and ‘Joint Hindu Family Business’ on the basis of maximum numbers of members.
Answer
Partnership- 10 in case of banking and 20 for other business. Joint Hindu Family Business - No limit.
Alternate Answer
As per Companies Act, 2013 (amended) the maximum number of partners is 100. Joint Hindu Family Business - No limit.
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Question 131 Mark
Paranshu was working with Hitesh. A new entrepreneur, as a Production Manager. To achieve the objectives, he issues necessary orders and guidelines to his subordinates pertaining to work and to give practical shape to the production plan.
Identify and state the element being discussed above which is related to one of the components of a 'Business Plan'.
Answer
Dispatching.
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Question 141 Mark
Differentiate between 'Excise Duty' and 'Customs Duty'.
Answer
Excise Duty is a tax on manufacture or production of goods whereas Customs duty is a type of indirect tax levied on import and export of goods and services.
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Question 151 Mark
Give the meaning of 'Hindu Undivided Family'.
Answer
Joint Hindu Family is one which consists of male lineally descended from a common ancestor and included their wives and unmarried daughters.
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Question 161 Mark
What is meant by 'Employment'?
Answer
An activity in which an individual works regularly for others and gets remuneration in return.
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Question 171 Mark
Distinguish between 'Sales Tax' and 'Excise Duty'.
Answer
Sales tax
Excise duty
Sales tax is a tax levied upon the end customer who is the final consumer of the product.
The excise duty is defined as the tax levied by the government on the items that are produced within the country of India.
Burden of sales tax is borne by the end consumer.
Excise duty is paid by the manufactu.
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Question 181 Mark
'Trained man-power' is a type of Human Resource which is required in a Small- Scale-Enterprise. State the type of work they are often engaged in.
Answer
Trained manpower constitutes the technological expertise and they are often engaged in choosing the machinery needed, its installation and commission and supervision.
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Question 191 Mark
List the two basic roles of an entrepreneur.
Answer
Two basic roles of an entrepreneur are:
  1. Entrepreneur as an opportunity spotter.
  2. Entrepreneur as a project champion.
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Question 201 Mark
State any two features of owners fund.
Answer
Two features of owners fund are:
  1. It is the permanent capital.
  2. It provides the basis of control over the management of the enterprise.
  3. It is also known as risk capital because it is the owner who bears the risk in the business due to loss.
  4. Voting rights enjoyed by the owners.
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Question 211 Mark
Why is Management not considered the same as operation?
Answer
Management is not considered same as operation as management involves planning, organising, executing, directing, controlling and communication. However operation is more specifically related to the production process.
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Question 231 Mark
What does manufacturing cycle include?
Answer
Manufacturing cycle includes all the activities right from procurement of all materials to the shipping of finished goods.
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Question 241 Mark
What is PAN?
Answer
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued by the Income Tax Department.
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Question 251 Mark
An entrepreneur has access to which forms of business venture?
Answer
The entrepreneur has access to following forms to choose as venture:
  1. Sole proprietorship.
  2. Partnership.
  3. Oint Hindu Family.
  4. Cooperative.
  5. Corporation.
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Question 261 Mark
What do you mean by organizational plan?
Answer
The organizational plan is that part of the business plan which describes the proposed venture's form of ownership.
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Question 281 Mark
List any two limitations of sole proprietorship, which led to the evolution of partnership.
Answer
Two limitations of sole proprietorship are:
  1. Limited resources.
  2. Limited life of business.
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Question 291 Mark
What is market segmentation?
Answer
Dividing the market in smaller groups on the basis of consumer characteristics or buying situations is called market segmentation.
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Question 301 Mark
What is employment?
Answer
Employment is an activity in which an individual works regularly for others and get remuneration/compensation in return, undertaking personal services as per the agreement of employment.
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Question 321 Mark
Once selected, changing the 'form' of business is undesirable. Why?
Answer
Once selected, changing the ‘form' of business is undesirable because it is quite complex, time consuming and costly affair.
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Question 331 Mark
Desired manufacturing results of operation plan are in which terms?
Answer
The desired results are in terms of:
  1. Quantity.
  2. Quality.
  3. Time.
  4. Place.
  5. Cost.
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Question 341 Mark
What are non-economic activities?
Answer
Non-Economic Activities: Those activities which are done out of love, care, affection, self-satisfaction, emotions, sympathy, Be patriotism, etc. but not for money are known as non-economic activities.
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Question 351 Mark
Is it necessary to register a partnership firm?
Answer
No, it is not necessary to register a partnership firm.
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Question 361 Mark
What is VAT?
Answer
VAT is a system of taxation, in which tax is levied on value addition at each stage of transaction in the production/ distribution chain.
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Question 371 Mark
Cooperative works on which principle?
Answer
Cooperative works with the principle of each for all and all for each.
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Question 381 Mark
A company being an artificial person cannot sign. How this drawback can be overcome?
Answer
Company being an artificial person cannot sign, therefore, the common seal of the company is affixed on all legal documents to make it legally binding.
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Question 391 Mark
What is TAN?
Answer
TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax.
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Question 401 Mark
Which are the four Cs of Credit on which investors/ lenders focus?
Answer
Four Cs of credit on which investors/ lenders focus are Character, Cash flow, Collateral and Equity Contribution.
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Question 411 Mark
Who can write the business plan?
Answer
Ideally, the business plan should be written by an entrepreneur himself after consultation with the following professionals:
  1. Lawyers.
  2. Accountants.
  3. Marketing consultants, etc.
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Question 421 Mark
Give two examples of persons who are engaged in profession.
Answer
Two examples of profession are as follows:
  1. Doctors.
  2. Chartered accountants.
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Question 431 Mark
The question 'Where do we want to go’ addresses to which thing on an enterprise?
Answer
This primarily addresses the marketing objectives and goals of the enterprise in the next twelve months or the near future.
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Question 441 Mark
What is production?
Answer
Production is transformation of raw material into finished product with the help of energy, capital, manpower and machinery.
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Question 451 Mark
'Spending money on making bussiness plan is a waste'. Defend or Refulte.
Answer
I refute the above statement, as a business plan is needed by an organisation for the below mentioned reasons:
  1. Used for getting finance from banks or equity funding.
  2. Attract business partners to make alliance.
  3. Evaluation of all the elements of business.
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Question 461 Mark
Name the forms of the Company form of organisation.
Answer
An entrepreneur, under the Company form of organisation has two choices to incorporate enterprise. These are:
  1. Private Company.
  2. Public Company.
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Question 471 Mark
Define Partnership.
Answer
A partnership is an association of two or more persons to carry on, as co-owners, a business and to share its profits and losses.
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Question 481 Mark
What is Follow-up?
Answer
Follow-up or expediting function relates to evaluation and appraisal of work performed.
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Question 501 Mark
What lends credibility to the potential success of the new venture.
Answer
Reasonable profit with conservative estimates lends credibility to the potential success of the new venture.
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1 Marks Question - Entrepreneurship STD 12 Commerce Questions - Vidyadip