Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

Below the line methods of promotion are specific, memorable activities focused on targeted groups of consumers. Give the various techniques of this approach.

Rohit Shetty started leather shoe business with his brother. Both were very excited about the new venture. With meticulous planning and a lot of hard work, they were able to sell 700 pairs of shoes in the first year. But they did not earn any profit. Both were happy because they were not at loss and revenue generated was equal to the cost.
Now they were moving towards earning profit in the second year.

1. Identify the component of financial plan discussed above.
2. By giving any four points state how this component is useful for the entrepreneur?

Answer each of these questions in about fifteen words:
'Production', 'Marketing', and Financing'–deemed as the most important factors for any business's survival rates. Among these name the most critical element and why?

What does marketing plan describes?

Explain the investment decision under the financial plan? In which areas should the investment should be on the basis of priority?

What is meant by partnership? State the consequences of non-registration of a partnership firm.

Working capital is of two types. Explain them briefly.

Make a proforma of Income statement.

Apart from synergy, explain any four reasons, why companies opt for mergers and acquisitions?

Prerna is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop, selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, for better management of the business she is thinking to convert her sole proprietorship into some other form of business. She also has plans to open branches countrywide. However, she is afraid of the fact that in case the business incurs losses, her personal property may be called upon to pay the business debts. She is also feeling that she may not be able to effectively manage a large business because of her deteriorating health.

1. Identify and explain the features of sole proprietor business highlighted in the above case.
2. Also suggest to her the form of business organisation which will help her in continuing her business, stating reason in support of your answer.