Sample Question Paper III (2023-24)
Subject: Entrepreneurship (066)
Class: XII
Time: 3 Hours Max Marks: 70
General Instructions:
1. This question paper contains 34 questions.
2. The question paper contains 4 sections - A, B, C and D
1.1. Section A contains multiple choice questions
1.2. Section B - 2 marks; Answers to these questions may be from 30-40 words.
1.3. Section C - 3 marks; Answers to these questions may be from50-75 words.
1.4. Section D - 5 marks; Answers to these questions may be from120-150
3. Internal choice is given in the paper, there is no overall choice.
PART A
Q.No. Marks
1. Exploring opportunities in the environment is a process involving 1
various steps. Arrange the steps in correct order:
i. Setting up a project and nurturing it to success.
ii. Evaluating the ideas received from different sources to find a creative
solution
iii. Identifying a product or service through innovation
iv. Opportunity spotting by analysing the needs and problems that exist
in the environment.
a. i-ii-iii-iv c. ii-iii-iv-i
b. iii-i-ii-iv d. iv-ii-iii-i
2. Which pricing strategy sets the initial price of a product lower than the 1
eventual market price to attract new customers?
a. Cost-plus pricing
b. Penetration pricing
c. Creaming or skimming
d. Variable pricing
3. Ramandeep is a technical entrepreneur who started developing interactive 1
websites of businesses. Due to lot of competition in this field he is
experiencing a decline in the demand. He wishes to understand his
revenue position as compared to his investment. Which one of the following
combinations would help him in assessing the profitability of his business?
(CBSE QP 2022-23)
(i) Economic Order Quantity
(ii) Return on Investment
(iii) Return on Equity
(iv) Break-Even analysis
(a) (i) and (iii)
(b) (iii) and (iv)
(c) (ii) and (iii)
(d) (i) and (iv)
4. 1Kraft Inc. almost took over Cadbury company by force. Identify the type of 1
acquisition:
a. Friendly acquisition
b. Reverse acquisition
c. Back flip acquisition
d. Hostile acquisition
5. 2 Which of the following reasons will reduce the average production costs 1
following a merger or an acquisition?
a. Economies of scale
b. Conglomerate merger
c. Vertical merger
d. Horizontal merger
6. ABC ltd. is a company into manufacturing of TV, mobile phones and other 1
electronic items of high value. Which of the following is the best suited
channel of distribution for the company?
a. Direct channel
b. Indirect channel
c. Short channel
d. None of these
7. What will be the Net Working Capital of Sukhom Ltd. from the given data? 1
(CBSE QP 23)
Cash ₹ 2,00,000
Amount Receivables ₹ 1,50,000
Account Payables ₹ 65,000
Inventory ₹ 3,00,000
Short term borrowings ₹ 1,00,000
Outstanding Salaries ₹ 50,000
a. ₹ 6,50,000
b. ₹ 2,15,000
c. ₹ 8,65,000
d. ₹ 4,35,000
8. Bharat Sethi founder of ‘Rage Coffee’ found that the coffee market had 1
huge potential and many unserved gaps. So he started to obtain the
required resources, focused on ingredients, formulations, manufacturing
techniques and direct to consumer distribution. Bharat is in which stage of
innovative process.
a. Analytical planning
b. Resource organization
c. Implementation
d. Commercial application
9. Ramesh wants to invest a total of ₹10,00,000 on his footwear store. His 1
net profit before interest and tax will be ₹5,00,000. What will be his
Return on Investment?
a. 20%
b. 30%
c. 40%
d. 50%
10. Assertion (A): Sensitivity to environment factors is crucial for an 1
entrepreneur.
Reason (R): If a company is able to adapt to its environment, it would
succeed in the short run.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of (A)
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
11. Assertion (A): Obtaining venture capital is substantially different from 1
raising debt or a loan from a lender.
Reason(R): Lender have a legal right to interest on a loan and repayment of
the capital, irrespective of the success or failure of a business.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of (A)
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
12. 4. Assertion (A): Internal expansion results from the rapid increase in the 1
activities of the concern.
Reason (R): The concern may expand its present production capacity by
adding more machines.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of (A)
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
13. This is the stage where there is first, encounter of the product with the rest 1
of the market, actually the attempt is to squeeze in the market and get some
market share from the competitors.
a. Seed capital
b. Pre-start up
c. Second-round financing
d. Both (b) and (c)
14. Resource organization doesn’t include: 1
a) Applying resources
b) Human resources
c) Material resources
d) Capital resources
15. Shruti gathers all types of information related to her business regularly 1
from all possible sources which leads to boost in her business. Identify
the way in which she is able to spot the trend.
a. Talk trends
b. Watch trends
c. Think trends
d. Read trends
16. Samantha is an entrepreneur who has developed a unique line of 1
handmade jewellery using sustainable materials. She also plans to be fully
relieved of the problem of distribution and thus decides to hand over her
entire output to the selling agents. The channel of distribution used by
Samantha is:
a. Zero level
b. One level
c. Two level
d. Three level
17. An example of form utility is: 1
a. Goods transported from place of production to place of consumption
b. Goods stored when not required
c. Raw materials changed into finished goods
d. (b) and (c)
18. A private company has a minimum of 2 and a maximum of _____ 1
excluding its present and past employees.
a. 7
b. 50
c. 25
d. 30
PART B
19. Give reasons for the following situations in business: 2
a. Operating cycle is shorter in trading business than in manufacturing
business.
b. Shelf life has an impact on the inventory.
20. Two friends Mitu and Ritu were partners in a garment business. Their 2
business grew in leaps and bounds for the last two years. Unfortunately,
due to a pandemic in the country, there was a slight slump in the first
quarter of the business. Due to this, there was a dispute between the two
partners and they wanted to minimize their personal risk by separating.
They tried to settle their dispute amicably so that the profits could be
shared.
i. Identify the new form of business adopted by Mitu and Ritu after the
pandemic.
ii. State two demerits of partnership form of business.
OR
Angel investor and venture capital are two sources of raising finance for an
entrepreneur.
Explain the concept of both the sources stating one distinguishing feature
of each.
21. How many forms of synergy are there? Discuss. 2
22. Write any two forms of acquisitions. 2
23. An entrepreneur can raise the capital in the primary market by many 2
methods. Private placement is one such method. Discuss the method with
special emphasis on the examples of institutional investors.
OR
When an entrepreneur decides to go public and become a public company,
he/she tends to be in advantageous positions because of reaping many
benefits. What are those benefits? Elaborate.
24. A relatively handful of things will generate the bulk of the results or in any 2
group will have “vital few and trivial many”. Analyse the statement.
PART C
25. Pratyush has started a herbal hair oil manufacturing unit. He has decided 3
about the logo, packaging format and labelling of the product. His friend
Ayush asked him whether he has taken care of the legally recognised
exclusive rights of other manufacturers in the industry before taking the
above stated decisions. Identify and give the meaning of the concept about
which Ayush asked Pratyush.
26. State any three items of physical infrastructure that should be mentioned 3
in the description of a business plan.
OR
What is advertising? State with reason the mode of advertising you would
adopt to sell ‘Fast moving consumer Goods in urban centres.
27. NU-FONE launched a smart mobile phone in the market recently after lot 3
of research and development. This mobile phone had many new features
which distinguished it from the existing mobile phones in the market. To
recover the investment a high price was determined for the mobile phone
even then the demand was very high. The quality conscious customers
were ready to pay the high price as they understood the product’s
value and its features.
(i) Identify and explain the pricing-strategy used by NU-FONE
(ii) Explain one advantage and one disadvantage of this pricing strategy.
28. Break even analysis has a major impact on the business decision 3
making. Comment.
29. Describe the stages in ‘early stage’ business development funding. 3
PART D
30. Bhushan and Vinay were pursuing Electrical Engineering from a 5
prestigious engineering college. During their third year they developed a
solar LED bulb which can be used indoors. The bulb had a small panel
which had to be charged at a stretch for 10 hours in the sun and it would
last for 200 hours of usage. The idea was risky as there was a possibility
that the market might not accept such a product, but if they do so, then,
there would be a revolution in the power industry as it would lead to saving
of power in every household. The prototype was made but to manufacture
and distribute the same, they required around Rs.5 crores. Both Bhushan
and Vinay approached some affluent individuals who were ready to invest
in their business in exchange for a convertible debt.
Identify and explain the type of investors and state the features of the same.
31. “Innovation is the process of entrepreneurship”. With reference to this 5
statement, explain the meaning of innovation and the elements of this
process.
OR
Explain any five steps involved in the process of investigation of a feasible
product.
32. Regional ready-to-drink brands grow at twice the rate of Pepsi, Coca- 5
Cola and increase value share to 24% in 2019 in non-alcoholic beverages
market.
Regional ready-to-drink beverages brands, including Bovonto, Jayanti
Cola, Sosyo runner and Kashmira, put together grew more than the twice
the rate of national players like Coca-Cola, and PepsiCo in calendar
2019, two industrial officials said citing data from research firm Nielsen.
According to the data, all the hundreds of local brands put together,
increased their value share in the Rs.20, 000 plus non-alcoholic ready-
to-drink retail beverages market to 24% last year, which is almost half the
size of industry leader Coca-Cola’s 49.9% share and well ahead of Pepsi
Co’s 19.6%.
Lower pricing for the local brands and minimal overheads on marketing
are helping regional brands to boost market share in spite of the two cola
majors’ hyper localisation drive said a top official at a leading bottling
company in the country.
Carefully read the above excerpt and answer the following questions.
1. What were the two most important factors, responsible for boosting the
market share of the regional non-alcoholic beverages?
2. Identify the source of idea field mentioned in the above passage and
discuss five such opportunities in the same idea field.
33. What is problem identification? How does problem identification help the 5
entrepreneur?
34. From the following information of Balance sheet given below, calculate: 5
(i) Total Current Assets (ii) Total Current Liabilities
(iii) Gross Working Capital (iv) Net Working Capital or Fund
Balance sheet as on 31st March, 2013.
Liabilities Amount in (₹) Assets Amount in (₹)
Equity capital 4,00,000 Fixed Assets 2,50,000
Preference capital 1,00,000
General Reserve
Profit and Loss
90,000 Current Assets:
Account 12,000 Debtors 2,50,000
Stock 3,50,000
Current Liabilities: 1,10,000 Cash 25,000
Sundry Creditors 42,000 Prepaid Expenses 5,000
Bills Payable
Bank Overdraft
58,000
Outstanding Expenses 68,000
8,80,000 8,80,000
