Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

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

These are "convenient frames of reference for streamlining the process of generation of ideas.‟ Identify them and explain any three briefly.

Explain ABC Analysis of Inventory Control.
OR
Which items of inventory claim bulk of the values?

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.

Discuss the advantages and disadvantages of financial institutions for an entrepreneur.

Classify the following into fixed cost and variable cost:

1. Rent of a Godown.
2. Minimum telephone bill.
3. Interest on capital invested by an entrepreneur.
4. Salary to permanent staff.
5. Cost of raw-material, payment of transportation of goods.
6. Daily wages of sweepers.
7. Telephone charges beyond the minimum.

What are the advantages of franchising to the franchisor?

Abhimanyu Industries Ltd. had a team of professionals and experts to draft a comprehensive yearly document with all the relevant details of internal and external elements in managing the venture. This document acts as a decision-making tool for the management.
The Chief Executive Officer of the company always pays special focus on one element of this document that ensures the orderly flow of materials from raw state to finished product with a proper system of quality control, as according to him ‘work your plan’ is more important than ‘plan your work’.

1. Identify the ‘comprehensive yearly document’ being prepared by Abhimanyu Industries.
2. How is this plan a ‘decision-making tool’ for the management?
3. Identify the element that is the priority of the CEO of the company.
4. Why is the element as identified in (c) important?

Which values are exhibited by an enterprise which makes use of public relation' as a tool of sales promotion?

What is sales tax?