Download App

Entrepreneurial Planning — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEntrepreneurial Planning3 Marks
Question
What is Break Even Point?
✓

Answer

The Break even point is that level of volume of production at which firm neither makes profit nor a loss. It indicates the volume of sales needed to cover total variable and fixed expenses by the new enterprise.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Entrepreneurial Planning→Entrepreneurial Planning — all question types→Entrepreneurship STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

Answer each of these questions in about fifty words:
Why are Venture capitalists typically very selective in deciding while doing the investment?
→
Rajiv and Ramesh entered into a verbal agreement to form a firm. They agreed to share its profits. Their business was running smoothly. One day a dispute arose between Rajiv and Ramesh regarding the profit sharing ratio. Rajiv decided to move the court and enforce his rights against the firm and Ramesh.
Will Rajiv succeed? Give reasons in support of your answer.
→
Net working capital can be negative or positive, but gross working capital is always positive. Why?
→
Define merger.
→
What is AIDA?
→
Without having time frame for achievement of goals, you reach no where? Do you agree? If yes, justify.
→
Give any two benefits of budgeting, as enjoyed by a business.
→
Twitter Tweets
Twitter-named after the sound of chirping birds in 2006, has today established itself as a cultural touchstone, growing from a few thousand geeky users to more than 200 million today.
Most of twitter's revenue comes from advertising. Research firm marketer estimates that Twitter will generate $ 582.8 million in worldwide ad revenue for 2013, up from $288.3 million in 2012.
Twitter's money making potential has minted the company with an estimated market value of $ 10 billion, based on the appraisals of venture capitalists and other early investors who have been helping to fund the business so far.
Aiming for a sustainable future, Twitter, as has been long expected, tweets 'It will go public'.
The law that allowed Twitter to file its initial IPO documents confidentially is called the Jumpstart Our Business Start-ups Act (JOBS) President Barack Obama signed the law in 2012. It is designed to make it easier for small businesses and startups to grow and create jobs. Do you understand the significance of all this........?
Going public could give Twitter the muscle to become the next facebook or Apple-says one analyst.
The capital gains from going public will likely allow the company to make solid investments across the board in hiring, operations and acquisition- that's the power of finance.
  1. What is the full form of JOBS?
  2. Which source of raising finance has been opted for, by Twitter?
  3. Where will the company invest the funds so generated?
→
Boo.com Boo.com launched in the autumn of 1999 sold branded fashion apparel over the Internet. The company spent $135 million of venture capital in just 18 months and it was placed into receivership on 18th May, 2000 and liquidated. The fundamental problem was that the company was following an extremely aggressive growth plan, launching simultaneously in multiple European countries. This plan was founded on the assumption of the ready availability of venture capital money to see the company through, the first few years of trading until sales caught up with operating expenses. Such capital ceased to be available for all practical purposes in the second quarter of 2000 following dramatic falls in the NASDAQ the "dot crash" following the Dot-com bubble. Boo.com's sales did not match expectations, partly due to a higher-than-expected rate of product returns (a service that was offered for free but charged for by their logistics supplier Deutsche Post).
  1. What was the fundamental problem that caused Boo.com's liquidation in just 18 months?
  2. Why did Boo.com's sales did not match its expectations?
  3. What was the business of Boo.com?
→
At zero level of output, total expenses are also zero. Do you agree? Why or why not?
→