Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Price for a business is often quoted as a multiple of EBITDA. Why?

Blockbuster
This case study also applies to lack of agility but it's essentially location that has led to the downfall of Blockbuster. The company that delivers movies to 15 million doorsteps these days isn't Blockbuster the retail chain that once dominated the industry but an upstart company, Netflix company, that used little more than a website and knowledge of the postal service to topple a far more powerful and wealthy rival. The place for a video rental store these days is not on the high street but on the internet. Some fundamental rules changed and Blockbuster didn't get it fast enough whatever performance yardstick. Blockbuster was using to measure business success and guide strategic planing underestimated the impact of the change.

1. What were the reasons for Blockbuster's failure?
2. Which company caused the downfall of Blockbuster?

A business needs capital for a number of purposes. Give any two.

What are the drawbacks associated with non-registration of a partnership firm?

Explain any three factors that influence the decisions with regard to orders of inventory.

Vani, who was a teacher was not able to continue her job because of nuclear family problems. She had to look after her children. So, she decided that she would do something from her home. She decided she will start a water purifier servicing centre. This will only require one room as office and employ few boys for service providing.

1. She wants to start which type of business activity.
2. Which form of business organisation would be suitable for her?
3. What values are taken care of by Vani?

A book shop sells pens 30,000 quantity per year. Demand is uniform. Purchase cost is 6 per pen. Holding cost per annum is 20% of purchase cost. Ordering cost is 500 per order. What should be the EOQ for the shopkeeper?

Why is it necessary to know. the preferences of the buyers while deciding on a market strategy?

Give the meaning of 'Business situation analysis' and 'Identification of the target market' as steps in preparing the marketing plan.

One of the most important advantages of buying a franchise is that entrepreneur does not have to incur all the risks associated with the new business. Do you agree?