Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

Why is stock exchange important for an investor?

One of the steps of the process of mergers and acquisitions is 'Due diligence'. What is meant by it and what purpose does it serve? What value is reflected by a company by ensuring that this step is followed?

“The Budget period for all the business are same”. Do you agree? Comment.

Answer each of these questions in about one hundred and fifty words:
Write down the sectors of organized and un–organized market?

State any four basic functions involved in 'selling' as a function of exchange.

What is sales strategy?

Answer each of these questions in about one hundred and fifty words:
Explain how Capital markets are the most important source of raising finance for an entrepreneur.

What are the assumptions to be made for sales mix, for the calculation of break even point?

Differentiate between product franchise and manufacturing franchise.

Two years ago Gopal started manufacturing low fat, sugar-free ice-cream on a small scale basis in his home town, Vishakhapatnam. After some time his ice-cream became popular among health conscious young customers and old persons specially those having diabetes or some heart ailment. Because of the popularity of the ice-cream, the demand has increased manyfold. Gopal is unable to meet the same, because of his limited managerial ability and limited capital. Gopal also felt that whenever he fell sick his business was temporarily closed. To overcome this problem he decided to admit in the business his friend Mohan who has recently completed his MBA and is ready to invest money for the expansion of the business. Mohan advised Gopal to get their firm registered.

1. State three limitations indicated in the above para from which Gopal’s business suffered.
2. Why did Mohan advise Gopal to get the firm registered?