Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

Annual quantity of jeans sold by a shop is ₹ 2,400 at the rate of ₹ 200 per month. Cost of placing an order and receiving goods is ₹ 500 per order. Inventory holding cost is ₹ 60 per annum.

1. What is the economic order quantity for the shopkeeper?
2. How many order is to be placed?

An individual wants to start an enterprise that manufactures steam iron, which can be imported from Germany. The material available in Germany is a little better in quality. However, there are no safety issues with the one available in India. Which material would you go for and why? (social responsibility, import substitution).

Nirmal looking at the possibilities of doing business decided to start his equity research firm online. He put his content on web for companies and also adviced them. Indianinfoline.com launched by him also started e-booking in India.

1. Nirmal is engaging in which type of business activity. Explain it.
2. Explain other business activities apart from the one stated above.

What is innovation? List down the elements of the innovation process.

Is there any category of persons who are exempt from obtaining registration?

Give any two differences between angel investors and venture capitalists.

Give the meaning of 'Innovation.' State the elements in the innovation process.

Naveen after completing his M. Tech in Nano Technology wanted to start his own business. He thought to manufacture sophisticated instruments used in surgery. He knew that his knowledge of Nano Technology will help him in manufacturing these instruments. According to him such instruments will help the surgeons to operate upon the patients with accuracy, with minimum blood loss and quick post operation recovery; Such types of instruments are used in advanced countries only and there was a risk in marketing the same. The cost price of machinery required, for manufacturing such instruments was very high and more research was required in this field of Nano Technology. For seed funding, Naveen approached 'Himani Capital Ltd.' who finance such types of projects. 'Himani Capitals Ltd.' after analysing the proposal agreed to provide seed capital to Naveen.
Explain the different stages of 'Early stage financing' to seek venture capital finance after the one discussed above.

Will you, as an entrepreneur, use the base pricing method for consumable items? Justify your answer.

How is working capital calculated? Illustrate with an example.