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 Bihar Board 12th Entrepreneurship Important Questions Short Answer Type Part 1

Bihar Board 12th Entrepreneurship Important Questions Short Answer Type Part 1

Question 1.
Explain the steps involved in investigation of market assessment.
Answer:
The underlined steps involved in investigation of market assessment:

  • The first step is to obtain a concept of the product. Then it should be ascertained whether it is already available in the market.
  • Secondly it is needed to find out its application and use. If it is a new product, a detailed study is needed to find out its actual use for the consumer.
  • It is necessary to find out cost per unit. It is to be examined whether this cost is comparable with that of other competitive products. This will ultimately decided the sale price.
  • Every product of service has to face market competition at some stage. So it should be assessed through a study of the trends in demand and supply.
  • Technical complexity should be examined and it is needed to find out whether such technology is available locally.
  • Ideas should also have to be examined on the basis of expected annual turnover.

Question 2.
Explain the sources for scanning environment.
Answer:
The following are the sources of scaning environment:

  • Daily newspapers, such has economic times, Business standard, Financial express, The times of India, The Hindus, International Herald Tribune are the most important sources of scanning environment.
  • The other sources are Journals such as Business India, Business world, update, India Today fortline international etc.
  • The other sources are census date, R.B.I, Bulletin, Economic Survey, Reports, of Committees Constituted by government of India. Government of India publication of economic, trade Industry and regulatory matters.

Question 3.
Project identification is of great importance. Why?
Answer:
Project identification has got its importance in business for the following reasons:

  • Project identification initials the process of development, production employment etc.
  • Project identification has consequences which are long term in nature.
  • It provides the framework of the future activities of the enterprises.
  • Project identification shapes the future pattern of services.
  • It usually involves substantial financial outlays.
  • Project identification also initiates development of basic infrastructure and environments.
  • Project identification brings the necessary changes in society in course of time.

Question 4.
Give the objectives of environment scanning.
Answer:
The following are the main objectives of environment scanning:

  • To obtain an effective utilization of resources for improved financial performance.
  • To monitor constant changes in consumer behaviour, market competition, government policy etc.
  • To identity the threats and opportunities of the business.
  • To develop strategies towards emerging problems and safeguarding growth.
  • To foresee and predict future events and adjust accordingly.

Question 5.
State infrastructural facilities necessary to help an enterprise.
Answer:
In absence of infrastructure an enterprise can not operate smoothly. The following are the important infrastructure which help an enterprise:

  • Suitable size and location of Land.
  • Adequate means of transort for incoming and outgoing.
  • Appropriate plant and machinery.
  • Uninterrupted supply of power.
  • Proper availability of water.
  • Opportunities of getting trained and skilled workers.

Question 6.
Mention any two reasons to study the environment.
Answer:
The following are the reasons to study environment:

  • In getting success: Ensuring his survival, an entrepreneur has to succeed in attaining his objectives. It is possible only when he keeps his eye riveted on the changing scenario and adapts himself according.
  • Self, adaptation: The study and scanning of environment inspires and motivates an entrepreneur to adapt himself to the changing conditions and also to real benefit by turning the situation in his favour which is very important.

Question 7.
Explain any two economic factors affection the environment.
Answer:
In business the economic factor extent the maximum impact. In business and industries the economic environment gets affect by some factors which are as under:

  1. Stage of economic development: The shape of a business is based on the size and shape of a business enterprise, such as the Colgate company manufactured a low priced washing machine in the areas of developing and undeveloped countries where the market was undeveloped with low income.
  2. Economic policies: The industrial policy, revenue policy and trade policy etc. are all includes in govt’s economic policies. The above policies sometimes have favourable or adverse or no effect.

Question 8.
Is management a profession?
Answer:
Management as a profession: Profession means an occupation for which specialised skills are required. These skills are not meant for self-satisfaction, success of these skills is measured not in terms of money alone.

The essential features of a profession are as follows:

  • Specialised knowledge
  • Acquired knowledge
  • Representative body and
  • Ethical standards or code of conduct.

Question 9.
What are the main qualities of an entrepreneur?
Answer:
The essential quality of an entrepreneur is his ability to

  • take risk of future uncertainty.
  • innovate something new as a profitable apportunity.
  • create good or services commensurating the existing environement.
  • organise for getting the desired result.
  • face challenges of a highly competitive market.

Question 10.
Why market assessment is necessary for entrepreneurship?
Answer:
Market assessment guides the exact nature of goods or services which may be sold profitably.
Market assessment includes a study of:

  • The size and type of demand, the choice and preference of consumers, the target group of customers.
  • The type of competition, existence of other suppliers, the possibility of future changes in market condition.
  • The estimated cost of production, margin of profit, selling price, market price of similar products and opportunities of cost effectiveness.
  • The on-going innovation and changes owing to technological advancements which are likely to affect future cost and quality of output.

Question 11.
What are the qualities of a successful entrepreneur?
Answer:
The main qualities of a successful entrepreneur are as under:

  • Talent to recognise a business opportunity market or product.
  • Ability to assemble financial and non-financial resources.
  • Zeal to translate ideas into action.
  • Commitment and dedication to work.
  • Desire to achieve even within adverse conditions.
  • Competence to identify the real needs and desires of consumers and the methods to satisfy them effectively.
  • Readiness to accept risks and challenges.
  • Promptness to take fast and correct decision.
  • Skill to foresight, forecast and future planning for growth.

Question 12.
Describe the term ‘Factory cost’.
Answer:
The raw material when to be converted into a finished product with the help of labour has to undergo various process. At this stage or in factory whatever the cost is incurred is known as ‘work overhead’ and when added to the prime cost, it comes to be known as factory cost.

Question 13.
What is Break-Even Analysis?
Answer:
Break even analysis helps in understanding ‘Returns’ and ‘Cost’ in relation to sales of a business enterprise. In case of Break-even returns through sales become equal to the cost of a products.

Question 14.
Management increases efficiency. How?
Answer:
Management helps in increasing efficiency through best possible planning of the activities of the organisation, through co-ordination by appointment of suitable staff and ensuring cost reductions through control.

Question 15.
What is Management?
Answer:
Management is a process by which for efficient end effective undertaking of work group planning, organising, appointment, directions and control are implemented.

Question 16.
Define Social Responsibility.
Answer:
According to Prof. Kountz and O’Donnel, “Social responsibility is the personal obligation of everyone as he acts in his own interest to assure that the righ and legitimate interests of all others are not impinged.”

Question 17.
What is Market Evaluation? Why It is dove?
Answer:
As certaining customers income, their likes and dislikes and details about their educational qualifications through a survey and producing products to match the above is termed as market evaluation. This is undertaken to manufacture and products in accordance with the market requirements.

Question 18.
What is Market Observation?
Answer:
Making an analytical study of, demand and supply of various commodity in the market and on the basis of information so gathered to make a forecast of demand for various products is termed as market observation.

Question 19.
What is opportunity?
Answer:
Opportunity implies reaping of benefits from the existing conditions. Some people get benefited who identity such opportunities whereas the rest achieve nothing. Opportunities are not stable, they come for a short period and then leave.

Question 20.
What are the various factors of sensing an opportunity?
Answer:
Following are the main factors of sensing an opportunity:

  • Power of understanding
  • An eye on changes taking place
  • Knowledge of competition
  • Information of data and its analytical study and
  • Quality to adapt to change or new techniques of promotion.

Question 21.
What do you understand by promotion?
Answer:
Promotion refers to identification of new business opportunities and thereafter with an object to earn profit organise a business enterprise making full use of the capital, assets and management capabilities.

Question 22.
How would you define a business opportunity?
Answer:
Business opportunity is defined as a project or scheme which is very attractive in reference to rate of return and encourages an entrepreneur to invest in a specific project and give it a concrete shape.

Question 23.
What is the importance of environment?
Answer:
Importance of environment is on account of the following reasons:

  • Search for a suitable opportunity,
  • Fight for survival or existence,
  • In the achievement of success,
  • Setting oneself properly adjusted.

Question 24.
What are the main limitations of environmental analysis?
Answer:
Following are the main limitations of environmental analysis:

  • Difficulties involved in practical application,
  • Uncertain future, and
  • No guarantee about the effectiveness of the enterprises.

Question 25.
What is Micro Environment?
Answer:
It refers to those factors which remain under the control of the entrepreneur, which include the targets of the enterprise and its functioning, type of organisation, administration and authority and policies etc.

Question 26.
What is Market Environment?
Answer:
Market environment refers to those external factors and forces which have a direct impact on marketing and managerial capabilities so as to develop the market with the help of desired consumers.

Question 27.
What is the statistical method of demand forecasting?
Answer:
Demand forecasting through statistical method is done by periodical despatches, internal arrivals and through the help of outward despatches.

Question 28.
State any two features of modern concept of marketing.
Answer:

  • Modern concept of marketing lays maximum stress on consumers’ satisfaction. According to this concept without customers’ satisfaction neither any profit can be earned nor the business can survive for a long period of time.
  • In the modern concept of marketing goods and services are produced keeping in view the desire and requirements of the consumers or customers.

Question 29.
State any four points to be considered while selecting an enterprise.
Answer:
Four main points to be considered while selecting an enterprise are as under:

  1. Easy to establish
  2. Availability of capital
  3. Stability and Continuity
  4. Minimum Government control and regulations.

Question 30.
What is plant layout?
Answer:
A good plant layout is one which enables the raw material to pass through the different stages of manufacturing process in the shortest possible period of time. Its main objective is to increase the production capacity and make the production process least expensive.

Question 31.
What is ecological feasibility?
Answer:
Ecological feasibility is especially important for those products and services which have a direct or indirect impact on the environment projects such as; Generation of electricity, irrigation, cement manufacturing and chemical industry etc. The main object of such projects is to prevent environmental pollution.

Question 32.
State any four factors to be considered in promotion of a business enterprise.
Answer:

  1. Selection of suitable business
  2. Selection of the form of business organisation
  3. Financial means or resources, and
  4. Size of the business enterprise.

Question 33.
What points would you consider before establishing an enterprise?
Answer:
There is a need to take into consideration the following points before establishing a business enterprise: Availability of labour, raw material, plant and equipments, finance management, market, location, manufacturing process and reporting on progress of the project.

Question 34.
Sate any one definition of business planning.
Answer:
According to Curtiloaf and others, “Business planning is also known as a form of prospectus.” In reality, business planning is a written description of what an industrialist or entrepreneur is doing and what he wants to achieve through this and what else he is thinking of doing?

Question 35.
What are the conditions of good business planning?
Answer:
A good business planning comprises the following essential elements. It should be simple, clear and confidential and should enable completion of the project in time bound framework.

Question 36.
State any two main essentials of a good project planning or preparation.
Answer:

  1. Development of a project should be based upon realistic concepts for fulfilment of certain commodity requirements or needs of the market.
  2. All aspects of the project should be carefully and impartially reviewed before implementation of the project.

Question 37.
What do you understand by Project Management?
Answer:
Project management is achievement of desired and pre-determined objectives in a given span of time at the pre-estimated cost. Thus project from the beginning till the end is the process of planning and directing the efforts for the achievement of desired objectives.

Question 38.
Give one definition of a project.
Answer:
According to J. S. Citizer, “Project is the whole complex of activities involved in using resources to gain benefits.”

Question 39.
What is project report?
Answer:
project report is a written account of the projects initiated by an entrepreneur or firm giving details of the various activities undertaken by them. It is a written account of technical, financial, commercial and social aspects related to the project.

Question 40.
State any two objectives of project report.
Answer:

  1. To make an assessment of the investment opportunities and
  2. To submit report for securing financial assistance.
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