Model Paper 2025 Entrepreneurship - Model Paper 2025

Tutu Pump Co. uses about 7500 valves per year, which is constant throughout the year. The valve costs ₹15 per unit and the carrying cost is estimated to be ₹ 3 per unit. The cost of placing an order and its processing is ₹ 18.
Calculate the Economic Order quantity (EOQ). Give any one benefit that Tutu Pump Co. derives after calculating the EOQ.

‘A channel of distribution consists of three types of flows.’ Explain the three flows

Explain any three market-related considerations to be used by an entrepreneur while selecting the channel for distribution.

In 2022, a popular snacking brand ‘Pom-Pom’ completed 25 years in India. They were one of the first such brands in the country and wanted to start a campaign that allowed the brand to connect with the consumers directly. The marketing team created the idea of ‘Me and Mera Pom-Pom’ where people were encouraged to share their stories woven around their experiences with the product. Such a campaign enabled the consumers to send their message to the company rather than receiving it from them. People shared some of the most poignant and private moments of their lives. Some uploaded their viral films too.
(I) Identify the Promotional approach used by ‘Pom-Pom’ to reach its customers.
(II) Explain any two important features of this approach.

“One of the components of a business plan effectively establishes how the entrepreneur will compete and operate in the marketplace. It acts as a guideline regarding the marketing objectives, strategies, and activities to be followed by any new enterprise.”
(I) Identify the component of the business plan discussed above.
(II) Explain the steps described in the plan that help an entrepreneur find the group of customers whose needs the enterprise aims to fulfil.

(I) Distinguish between angel investors and venture capitalists.
(II) Describe the role of an angel investor in an entrepreneurial venture.

(I) ‘The highly anticipated Initial Public Offer (IPO) of Life Insurance Corporation of India (LIC), emerged as the largest turnout in terms of public participation in the nation's history.’
Identify the type of capital market LIC of India has approached.
(II) Distinguish between the two types of capital markets.
(III) ‘Capital markets are an important source of raising finance for entrepreneurs.’
Justify the statement, giving valid reasons in support of your answer.

Zoke Ltd. manufactures eco-friendly furnishing and upholstery products. The fixed cost for the production process is ₹ 22,56,000.
The following information is available about its range of products:

Variety	Cushion covers (per pair)	Curtains (set of two pairs)	Bed covers (Standard King size)
Selling Price (in ₹)	555	1150	1550
Variable Cost (in ₹)	275	550	750
Sales Mix	30%	40%	30%

From the given data, calculate the following;
(I) Total weighted average contribution margin.
(II) Breakeven Quantity for each product.
(III) Break-even point (in ₹) for a pair of cushion covers.

Read the following text carefully:
Mr. Prasad started a cakes and confectionery business in 2010 by the name of ‘Happiness to Order’. In no time his bakery became the talk of the town for customized cakes as per the occasion. He used high-quality liquid glucose and icing sugar to make the fondants for his cakes. Seeing the popularity, he opened 4 more outlets in different localities.
Over the years people have become cautious of what they eat and are cutting down on sugar. The fondants that were once the USP of his bakery were now losing market to the competitors as they introduced a healthier version of bakery products, especially cakes without gluten or sugar but almond flour, oats flour, etc.
His cooks advised him to experiment with healthier options which Mr. Prasad was reluctant to try. He could not adapt to the changing environment and all 5 outlets started running into loss. Eventually, he decided to close the business. He owes ₹ 15,00,000 to his supplier firm whom he had taken goods on credit in the past year.
On the basis of the given text and common understanding, answer the following questions:
(I) Mr. Prasad’s business funds are insufficient to repay the debts, can the supplier claim Mr. Prasad’s assets? Give valid reasons in support of your answer.
(II) “Environment scanning is important for an entrepreneur.” Justify the statement, giving valid reasons in support of your answer.

‘Pricing can also be used as a demarcation, to differentiate and enhance the image of a product’
(I) In the light of the above statement, explain Penetration and Skimming as two important pricing strategies that can be used by an entrepreneur.
(II) Give any two advantages of both Penetration and Skimming strategies.

Suvidha Store is a grocery store that retails fast-moving consumer goods. The store buys its supplies on credit and sells them on cash basis. With growing competition, it has also started selling goods on credit.
The above step taken by Suvidha store may lead to _______ in its working capital requirement and its cash conversion cycle will be __________.

In ___________ acquisition, the purchasing company becomes a subsidiary of the purchased company.

Identify, which of the following is an advantage of issuing shares through ‘Rights issue.’

Identify, which of the following is not a current asset for a furniture manufacturing unit?

The following information relates to the newly established Boutique – ‘The Pearl’:
● Total capital invested - ₹ 40,00,000 out of which ₹ 20,00,000 is a bank loan at 15% per annum
● Net Profit after Tax is ₹ 6,00,000
Calculate Return on Equity for The Pearl Boutique.

Tic Tac Electricals Ltd. manufactures switches and plugs in an industrial area in the state of Haryana. On an average, they manufacture 2500 switches per day. Their raw material supplier is based in Punjab and takes 5 days to deliver the requirement once the order is received.
Estimate the reorder level for Tic Tac Electricals Ltd.

Describe the ‘elevator pitch’ format of business plan used by entrepreneurs. How is it different from an ‘internal operational’ plan?

Zakir is keen on giving up his job and starting a new fitness industry business. He has to choose among fitness drinks, gym equipment & fitness gear.
Zakir decided to spend more time in the gym inside his apartment complex and in nearby localities, especially on weekends and late evenings, to observe the people and understand their requirements.
He took the membership of Gym Community Trade Association through which he got the advantage of their social networking tools like Instagram page, gym websites and community Whatsapp groups. He conducted an online survey to ascertain the viable product for his business idea. The response so collected gave him the clarity that he should go with fitness gear.
By quoting lines from the above passage, identify the ways of trend spotting used by Zakir.

Discuss briefly the two forms of ‘synergy’ that accrue to the merging firms.