CURRICULUM - CBSE 2023-24, Cheat Sheet of Business

Download CURRICULUM - CBSE 2023-24 and more Cheat Sheet Business in PDF only on Docsity! Marking Scheme (2023-24) Subject: Entrepreneurship (066) Class: XII Part A Answers Marks 1 d. Both Quantitative and Qualitative analysis 1 2 c. i and ii 1 3 c. iii and v 1 4 c. Ambient 1 5 c. i, ii, iii and iv 1 6 d. Public Relations 1 7 d. Rs. 4,35,000 1 8 c. Umbrella branding 1 9 b. Secondary market 1 10 a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) 1 11 d. Sujata AI ltd. raised funds from Mr. Bansal, an affluent individual in exchange for ownership equity 1 12 b. Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A) 1 13 c. Assertion (A) is true but Reason (R) is false 1 14 c. Identifying a product or service through innovation 1 15 a. Read Trend 1 16 b. Preparation 1 17 a. Political 1 18 b. Organising resources Part B 19 It should clearly state the problem Identify target group facing the problem Find the market acceptability of the solution to the problem (Any two) OR There are basically five ways in which creative ideas can be generated: 1. Develop a new product or service. 2. Improve an existing product or service 3. Find a new process or resource for manufacturing a product. 4. Find new markets for existing products or services. 5. Find a new use of an existing product or service. (Any two) 2 2 20 1. Direct Sales Strategy: where sales people attack the competition head on when talking to the customer. They talk about each feature of the competition’s product and compare it to theirs. The term "negative selling" refers to the direct sales approach. 2. Indirect Sales Strategy: They apply more subtle techniques by demonstrating features and benefits not available with the competition’s products or services without ever mentioning them by name. This more sophisticated, positive sales strategy requires research and analysis of the competition. 2 21 a. Demand: The demand assessment will be based on the size of market being targeted, i.e., local markets, market at state level or national/international market. It will also involve a study of the target groups of consumers, their preferences, tastes and other related variables. b. Cost and price of product: It is important to determine the cost of the product and its comparison with available products in the market. Cost variable of competitors in terms of transportation delays, wastage, storage etc., have to be studied to spot cost advantage. This will influence the delivery mechanism of the identified product or service. 2 22 1. Franchising changed the working of the startups because already the product carriers a name in the market already which is the most difficult part of business to establish. 2. Startups take up training to understand the product and franchisors make franchises fully conversant with the product/services that they have to offer. 2 Q= 2 × 1500 × 14400/30 = √1440000 = 1200 jeans Part C 25 Purpose of logo: Logos are a critical aspect of business marketing. As the company's major graphical representation, a logo anchors company's brand. 2) Corporate Logo are intended to be the "Identity" of an enterprise because of displaying graphically enterprise's uniqueness. 3) Through a set color combination, fonts, images, impression and/or pattern, logos provide essential information about a company that allows customers to relate with the enterprise's core brand. 4) Enterprises normally resort to logos' as a short path for advertising and other marketing materials. 5) Logos act as the key visual component of an enterprise's overall brand identify. (Any three) 3 26 The three situations are: a) No manufacturing involved: If the new venture does not include any manufacturing function, say it’s a trading firm or a service provider, then this section will stand eliminated from the plan. b) Partial manufacturing: If some or all the manufacturing process is to be subcontracted or outsourced, then the production plan should describe: i) Name and location of subcontractor(s) ii) Reasons for their selection iii) Cost and time involved iv) Any contracts that have been completed etc. In such cases, a clear mention of what entrepreneur intends to do himself and what he plans to get it done from outside is required. c) Complete Manufacturing: If the manufacturing is to be carried out in whole by the entrepreneur, he/she will need to describe: i) the physical plant layout, ii) the machinery and equipment required to perform the manufacturing operations, iii) raw materials and suppliers names, addresses, terms and conditions, 3 iv) cost of manufacturing v) any future capital equipment required etc. OR The business plan – a) helps in determining the viability of the venture in a designated market b) helps in providing guidance to the entrepreneur in organizing his/her planning activities as such: i) identifying the resources required ii) enabling obtaining of licenses if required etc. iii) working out with legal requirements as desired by the government. c) helps in satisfying the concerns, queries, and issues of each group of people interested in the venture. d) provides room for self-assessment and self-evaluation, requiring entrepreneur to think through various scenarios and plan ways to avoid obstacles. e) though not desirable, at times, business plan helps to realize the obstacles which cannot be avoided or overcome, suggesting to terminate the venture while still on paper without investing further time and money. f) as the investors/lenders focus on the four Cs of credit : character, cash flow, collateral and equity contribution (Any three points) 3 27 Advantages of cost plus pricing 1. Biggest advantage of this is that company knows exactly the amount of expenditure that has incurred on making a product and therefore they can add profit margin accordingly which helps in achieving the desired revenue for a firm. 2. It is the simplest method to decide the price for a product because one has just to add up all the cost and then add profit which you want to earn which will give the price for a product. 3. Since the company is using its own data for deciding cost which makes it easier for a company to evaluate the reasons for escalations in expenses and therefore it can take corrective action immediately. 3 28 It is actually a blue print prepared right in advance of actual operations — i) Ensuing orderly flow of materials in the manufacturing process from the beginning (raw state) to the end (the finished products) ii) Facilitating continuous production, lesser work-in-progress and minimization of wastage. iii) Co–ordinating the work of engineering, purchasing, production, selling and 3 inventory management. iv) Describing the flow of goods / services from production point to the consumers. v) Introducing a proper system of quality control vi) Undertaking the best and most economic production policies and methods. (Any three points) 29 a. Finance assists in the formation of new businesses and allows businesses to take advantage of opportunities to grow and expand. b. A business needs funds to: a) Promote or establish the business b) Acquire fixed assets c) Make market investigations d) Develop products e) Keep men and machines at work f) Encourage management to make progress and create value. g) Expand, diversify, improve, and grow. c. The significance of finance in an enterprise is like a lubricant to the process of production. Finance is the elixir for any business as nothing happens without money. OR a) Mobilize the financial resources on a nation-wide scale. b) Secure the required foreign capital and know-how to promote economic growth at a faster rate. c) Ensure the most effective allocation of the mobilized financial resources by directing the same either to such projects which are capable of the highest yield or to the underdeveloped priority areas where there is an urgent need to promote balanced and diversified industrialization. The capital market satisfies the tastes of savers and the needs of investors through its various financial instruments and institutions. 3 3 Part D 30 Synergy is the most essential component of mergers. In mergers, synergy between the participating firms determines the increase in value of the combined entity. In other words, it refers to the difference between the value of the combined firm and the value of the sum of the participants. Synergy accrues in the form of revenue enhancement and cost savings. a) Operating synergy: This refers to the cost savings that come through economies of scale or increased sales and profits. It leads to the overall growth of the firm. 5 competencies and knowledge required to launch, manage and expand business opportunities. Service related ideas Entrepreneurial opportunities are not only restricted to the manufacturer. Service sector is the most growing field these days, the world over, because of the emerging knowledge in societies and advancements in Information and Technology. So, new opportunities can be identified by understanding the linkages to different business activities. OR 1. Product identification An idea should lead the entrepreneur to a definite product/service which he can sell. So the first step is to obtain a concept of the product or service suggested by one idea. We should also see whether this product is already available in the market or not. If it is, then we should identify the reason for introducing the same product or service in the market. 2. Application and use Ideas should be examined for their real life use and application. If it already exists in the market, we will have to find out its present use, then we may think of modifying it for better use. 3. Level of operation This is a crucial test for product/service identification. Depending on the use of the product/service the entrepreneur will produce it in a cottage industry or a small scale– industry or a large–scale industry. 4. Cost What is the per unit cost of the product at particular level of operation? Whether this cost is comparable with that of other competitive products? These are some of the questions that have to be answered. This will ultimately decide the sale price. 5. Competition Any product or service will face market competition at some stage. So market competition should be assessed through a study of the trends in demand and supply. 33 Variety Classic Gel Pen Executive Ball Pen Four-in-one Ball Pen (A)Selling Price per unit 15 21 36 (B)Variable cost per unit 9 14 19 (C) Contribution A-B (in Rupees) 6 7 17 (D) Sales Mix 20% 20% 60% Weighted contribution (C× D) 6 7 17 1.2 1.4 10.2 i. Total weighted average contribution margin= Rs.12.8 (1.2+1.4+10.2) ii. Breakeven Quantity for each variety BEP= Total Fixed cost/ total weighted contribution = 256000/12.8 =20,000 units BEP for Individual 5 Classic Gel Pen Executive Ball Pen Four-in-one Ball Pen 20000 × 20% = 4000 units 20000 × 20% = 4000 units 20000 × 60% = 12,000 units iii. Break even (in Rupees) for Four-in-one Ball Pen Break even quantity × selling price /ball pen 2000 × Rs.36 = Rs. 72,000 34 Financial Plan. Components of financial plan A) Proforma investment decisions: This part of financial plan relates to how the enterprise's funds are invested in different assets so that the enterprise is able to earn the highest possible returns on investment. An estimate of various components of capital nature. B) Proforma financing decisions: In this component This section summarizes all the projected sources of funds available to the venture to raise finance from. Typically, sources of funds are: i) owners i.e. Owner's funds ii) outsiders i.e. Borrowed funds C) Proforma income statement The proforma income statement is the projected net profit calculated from projected revenue minus projected costs and expenses. It summarizes all the profit data during the first year of operations of the new enterprises. In preparing the proforma income statement, 'sales by month' must be calculated first, making use of forecasting techniques as the basis. D) Proforma cash flow Profit and cash flow are not the same, when from sales we subtract expenses, the result is profit and when from cash receipts we subtract cash payments, the resultant figure is thecash flow. Proforma cash flow reflects the projected cash available with the enterprise as a result of subtracting projected cash disbursements from projected cash 5