Enterprise Growth Strategies — Entrepreneurship STD 12 Commerce — Question

Net working capital can be negative or positive, but gross working capital is always positive. Why?

'Nature of Products' affects the channel of distribution. Which channel of distribution will be more suitable for the following products:

1. Voluminous and Bulky goods.
2. Capital goods.
3. Consumable goods with a better shelf-life.
4. Goods with low shelf-value.

Pankaj an entrepreneur started a new website 'Save Electricity' to sell LED bulbs. In the first year, he sold 2400 bulbs at the rate of 100 each. His cost of placing an order and receiving the bulbs is 500 per order. If the Economic Order Quantity is 200 buIbs, find out the inventory holding cost per year.

Raghav, an entrepreneur realises that the enterprise he wants to start, has a potential risk of fire accidents because the production process poses such a threat. Should he develop strategies to:

1. Prevent the risk?
2. Respond to the risk?
3. Prevent as well as respond to the risk? Give reasons.

Explain how the regulatory issues leads to the failure of merger.

Naman, Arpit and Ramesh are in a partnership business and operate a retail jewellery store. They plan to prepare a budget for the year 2015-16 but since, they are preparing a budget for the first time, explain to them the different steps of the budgeting process. Which value is exhibited by them for preparing a budget?

Kotak Mahindra Bank Ltd., India's fourth largest private bank, and ING Vysya, the Indian branch of the Netherland's ING Bank. Kotal Mahindra signed a Memorandum of Understanding with ING Bank, establishing both firms' stake in the Indian firm.

Saurabh Publications was a Private Limited company. The publishing business was growing by leaps and bounds. The demand was huge. It required huge investment to set-up its branches and printing base all over the country.
The board members were thinking to offer shares to public to meet investment requirements.

1. Identify the form which board members are thinking of?
2. What two benefits would be denied, if this form is accepted?
3. What two benefits would be there, if this form is accepted by the company?

What do you mean by Cash Inflow and Cash Outflow?

Name and explain the two characteristics of business which involve possibility of loss.