Resource Mobilization — Entrepreneurship STD 12 Commerce — Question

'Golden Sweets' was a partnership firm, owned by Swati and Sushma. 'Asam Sweets' was another partnership firm owned by Vipan and Pranav. Swati and Sushma were sharing profits in 1:2 ratio and Vipan and Pranav were sharing profits in 2:3 ratio. Both the firms were situated in a famous market of Guwahati and were doing competitive business. Pranav the partner of 'Asam Sweets' observed that many of their customers were from far off areas and if branches of ‘Asam Sweets’ are opened in other parts of the city, the firm may earn huge profits. Similar was the situation of 'Golden Sweets'. One day in a function at a common friends house, the partners of both the firms knew that the internal expansion of their respective firms will be costly. Hence, they decided about the merger of the two firms. For this purpose, they decided to meet again to finalise the conditions of merger. Finally, on 1.1.2016 their respective firms were merged and a new firm ‘Asam Golden Sweets’ was formed with all the four partners Swati, Sushma, Vipan and Pranav. Their new profit sharing ratio was 1:2:2:3. During the year ended 31.12.2016, the new firm opened four new branches in different parts of the city and earned a profit of 30% on sales.

1. Identify the type of merger adopted by the two firms and also give its meaning.
2. Also give the names and meaning of two other types of mergers.

What are Public Relations?

What are the different types of value added?

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 various types of 'brand names' available to enterpreneur.

What is the implication of the feature separate legal entity?

When an enterprise is born the equilibrium between the two sets of forces is required. Identify the forces.

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%.

On which two factors does the accuracy of a cash flow projection depends?

Komal has started a herbal toothpaste manufacturing unit. She has decided about the logo, packaging format and labelling of the product. Her friend Neha asked her whether she has taken care of the legally recognised exclusive rights of other manufacturers in the industry before taking the above-stated decisions?
Identify and give the meaning of the concept about which Neha asked Komal.