Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

State the first three steps in the process of 'creativity'.

Explain the meaning of cash flow projection.

What are the rules for goal setting?

Answer each of these questions in about fifty words:
What do you understand by venture capital?

Name few different system of inventory control.

Saurabh wants to start a new business. He is not sure of the type of business he should start. His friend suggested him to seek the help of professionals. He contacted a professional who asked Saurabh to pay a big amount for providing the reports and industry updates. Therefore he decided to search for the reports and industry updates himself. He scanned the relevant information from various national and international websites.
Identify and state the way that Saurabh is using for spotting the trend. Also, state one more way which will help Saurabh in starting his business.

From the following information calculate return on investment and return on equity. You have newly started a beauty parlour business, you spend ₹ 1,50,000 to open the parlour of which you invested ₹ 70,000 of your own money and borrowed a loan for ₹ 80,000. Interest rate per annum is 7%. Sales revenue per month is ₹ 80,000. Cost of goods sold is ₹ 30,000 per month. Fixed expenses is ₹ 30,000 (salary ₹ 20,000, rent and utility 10,000), depreciation ₹ 3,000 and tax @ 14%.

From the following information calculate:

1. Gross working capital.
2. Net working capital.

Accounts receivable ₹ 2,00,000; Prepaid Expenses ₹ 20,000; Cash ₹ 60,000; Marketable Securities ₹ 40,000; Machinery ₹ 1,00,000; Bills Payable ₹ 40,000; Expenses Payable ₹ 80,000; Account Payable ₹ 80,000; Debentures ₹ 4,00,000; Stock ₹ 80,000.

Rekha, a sole proprietor has grown her business over the years of selling fashion accessories. She started with one shop but now has three in different localities.
She wants to expand even further but she has limited finances. She is thinking of going into partnership with her friend who is very much interested in joining her.

1. Explain two benefits of remaining a sole proprietor.
2. Explain two benefits and two limitations of partnership.

Answer each of these questions in about fifteen words:
How will you differentiate between financial market with other market? Give one difference.