Resource Mobilization — Entrepreneurship STD 12 Commerce — Question

How do primary and secondary markets promote capital formation?

“Synergy can be a positive or negative outcome of combined efforts”. Explain with the help of an example.

What is referred to as the excess of selling price over variable cost?

Give the meaning of 'Routing' and 'Scheduling' as elements of operational plan.

In late sixties, when there was a boom in agriculture, poultry farming, milk production and fishing, a minister started poultry farming in his constituency. Where similar projects were thriving in neighbouring areas, it was a complete disaster in minister's constituency because the constituents were predominantly vegetarian.

1. The minister has not monitored his idea against environment surrounding. He has failed to do what?
2. Which external environment has led to failure? Explain.

Why is it important to be able to categorise the business?
OR
Why is it important to carefully choose a legal structure for the business?

Arvind has started his Italian food based restaurant. Does he have to register his trademark? Give reasons for the same.

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%.

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?

What do you mean by scanning of environment?