Enterprise Growth Strategies — Entrepreneurship STD 12 Commerce — Question

Explain Cash Conversion Cycle in short.

What are the two main forms of external expansion?

Write down the formula for calculating the weighted average contribution margin per unit for the sales mix.

State any two points of importance of Stock-Exchange from the view point of investors.

Explain briefly the advantages of franchising for the franchisor.

From the following information calculate ROI.
Equity Share Capital ₹ 5,00,000
Preference Share Capital ₹ 2,00,000
10% Debentures ₹ 5,00,000
Current Liabilities ₹ 1,00,000
Net profit after interest but before tax ₹ 1,00,000

Why is environment an important factor for Entrepreneurship? Explain.

The footwear industry in India is dominated by ‘B-relax Footwear’. ‘B-relax Footwear’ procures 70% of its raw material from ‘Polymers Ltd.’ The major production of ‘Polymers Ltd.’ is plastic chips, PU foam and elastic which is used by ‘B-relax Footwear’ in its manufacturing processes. After due diligence, they decide to merge with each other. If they merge, ‘B-relax Footwear’ doesn’t need to look for a vendor and sourcing raw materials would be seamless. On the other hand, as a result of the merger, ‘Polymers Ltd.’ doesn’t need to worry about the sales and marketing. All they need to do is to improve their processes to produce better raw materials for ‘B-relax Footwear’. After the merger the combined entity will be known as ‘B-relax Inc’.

1. Identify and explain the type of merger between ‘B-relax Footwear’ and ‘Polymers Ltd.’
2. Why is due diligence required before merger ?
3. Which is the most dominant reason for this merger ? Explain.

Why stock exchange is also known as secondary market?

State the different stages of an 'Enterprise-Process-Diagram' with diagram.