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 Bihar Board 12th Entrepreneurship Model Question Paper 4 in English Medium

Bihar Board 12th Entrepreneurship Model Question Paper 4 in English Medium

Time: 3 Hours 15 Min
Marks: 70

Instructions for the candidates:

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
4. This question paper has two sections: Section – A and Section – B.
5. In Section – A, there are 35 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/ Liquid/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
6. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 Long answer type questions, out of which any 3 of them are to be answered. Each question carries 5 marks.
7. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 35 has four options provided out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each question carries 1 (one) mark. (35 × 1 = 35)

Question 1.
Project Appraisal is a /an
(a) Export Analysis
(b) Expert Analysis
(c) Profitable Analysis
(d) None of these.
Answer:
(c) Profitable Analysis

Question 2.
Management is an art of
(a) doing work oneself
(b) taking work from others
(c) both for doing work oneself and taking work from others
(d) none of these.
Answer:
(b) taking work from others

Question 3.
Risk Capital foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 4.
Out of the following which is the method of quality control?
(a) Inspection method
(b) Statistical Quality Control Method
(c) Both (a) and (b)
(d) Neither (a) nor (b).
Answer:
(c) Both (a) and (b)

Question 5.
Project identification deals with
(a) viable product idea
(b) logical opportunity
(c) effective demand
(d) none of these.
Answer:
(b) logical opportunity

Question 6.
Duty of Entrepreneur is
(a) profit charging
(b) tax evasion
(c) environmental pollution
(d) none of these
Answer:
(a) profit charging

Question 7.
The best example of variable cost is
(a) Interest on capital
(b) Material cost
(c) Wealth tax
(d) Rent
Answer:
(b) Material cost

Question 8.
Responsibility of the entrepreneur is
(a) towards Society
(b) towards Government
(c) towards Environment
(d) all of these.
Answer:
(d) all of these.

Question 9.
Telephone expense is
(a) fixed
(b) variable
(c) semi-variable
(d) none of these.
Answer:
(c) semi-variable

Question 10.
IDBI was established in the year.
(a) 1944
(b) 1954
(c) 1964
(d) 1974
Answer:
(c) 1964

Question 11.
Element affecting growth rate is
(a) Competition
(b) Change in technology
(c) Creativity
(d) All of these.
Answer:
(a) Competition

Question 12.
Integration means
(a) expanding internally
(b) expanding externally
(c) expanding internally and externally
(d) none of these
Answer:
(c) expanding internally and externally

Question 13.
Naked debentures are
(a) fully secured
(b) partly secured
(c) unsecured
(d) none of these.
Answer:
(c) unsecured

Question 14.
The maximum wide scope is of
(a) brand
(b) labelling
(c) packaging
(d) trademark.
Answer:
(a) brand

Question 15.
Management is
(a) Art
(b) Science
(c) Both Art and Science
(d) None of these.
Answer:
(c) Both Art and Science

Question 16.
Labelling is
(a) compulsory
(b) necessary
(c) voluntary
(d) wastage of money.
Answer:
(b) necessary

Question 17.
Dividend is
(a) Net profit
(b) Approximation of profit
(c) Reserve fund
(d) Part of undistributed profit.
Answer:
(d) Part of undistributed profit.

Question 18.
Public deposit is the source of
(a) short-term finance
(b) long-term finance
(c) middle-term finance
(d) social investment.
Answer:
(a) short-term finance

Question 19.
IFCI was established in the year
(a) 1939
(b) 1948
(c) 1950
(d) 1956
Answer:
(d) 1956

Question 20.
Closing stock is
(a) source of fund
(b) application of fund
(c) no flow of fund
(d) none of these
Answer:
(a) source of fund

Question 21.
Ideal Current Ratio is
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 4 : 4
Answer:
(a) 2 : 1

Question 22.
Long-term loan bears
(a) a fixed rate of interest
(b) flexible rate of interest
(c) zero rates of interest
(d) none of these
Answer:
(a) a fixed rate of interest

Question 23.
Current ratio is
(a) Balance Sheet ratio
(b) Profit & Loss ratio
(c) Mixed ratio
(d) none of these
Answer:
(a) Balance Sheet ratio

Question 24.
Venture capital through firstly originated in
(a) India
(b) England
(c) America
(d) Japan.
Answer:
(d) Japan.

Question 25.
For business, marketing is
(a) compulsory
(b) necessary
(c) unnecessary
(d) luxury.
Answer:
(a) compulsory

Question 26.
Marketing expense is chargeable on
(a) industry
(b) businessmen
(c) consumers
(d) all of these.
Answer:
(c) consumers

Question 27.
Factor affecting the product design is in
(a) two parts
(b) four parts
(c) three parts
(d) none of these.
Answer:
(a) two parts

Question 28.
What does the break-even point show?
(a) Profit
(b) Loss
(c) Neither profit nor loss
(d) None of these.
Answer:
(c) Neither profit nor loss

Question 29.
A project is
(a) Cluster of activities
(b) Single activity
(c) Group of innumerable activities
(d) None of these
Answer:
(a) Cluster of activities

Question 30.
Aspects(s) of project evaluation is /are:
(a) Technical evaluation
(b) Financial evaluation
(c) Managerial evaluation
(d) All of these
Answer:
(d) All of these

Question 31.
Planning is:
(a) Goal-oriented
(b) Objective oriented
(c) Mental process
(d) All of these
Answer:
(c) Mental process

Question 32.
Subsidy is:
(a) Discount
(b) Concession
(c) Repayment
(d) none of these
Answer:
(b) Concession

Question 33.
Incentives are not concerned with
(a) Rebate
(b) Exemption from tax
(c) Provision of seed capital
(d) Lump-sum payment
Answer:
(d) Lump-sum payment

Question 34.
Printing expenses are:
(a) Fixed
(b) Variable
(c) Semi-variable
(d) None of these
Answer:
(c) Semi-variable

Question 35.
The best example of variable cost is:
(a) Interest on capital
(b) Material cost
(c) Wealth tax
(d) Rent
Answer:
(b) Material cost

Non-Objective Type Questions

Short Answer Type Questions

Question No. 1 to 18 are short answer type. Answer any 10 questions. Each question carries 2 males. (10 × 2 = 20)

Question 1.
What are the sources of short-term finance?
Answer:
Sources of short term finance:

• Bank sources
• Secured loans
• On the basis of inventory
• Bridge finance
• On the basis of receivables
• Bank overdraft
• Unsecured loan
• Revolving credit control
• Cash Credit.

Question 2.
What is the promotion of business?
Answer:
Promotion of a business is referred to that work which is done with the help of such factors i.e. labour, raw materials, money and machines.

Question 3.
Define cost.
Answer:
According to I.C.M.A. London, “Cost is the amount of expenditure (actual or notional) incurred or attributable to a specified thing or activity.”

Question 4.
Write in brief about quality control of export products.
Answer:
Maintaining quality control necessary for all industrial units. However, this is greatly necessary for manufacturing in the small scale sector because these manufacturers employ human resources to a greater extent in the manufacturing process. But because of various limitations quality control is maintained to a very limited extent. These factors are related to a lack of finance technical competency and absence of proper management.

Question 5.
What is the importance of the environment?
Answer:
Following are the importance of the environment:

• In searching of opportunities
• In maintaining the existence
• In getting success.

Question 6.
What is the role of planning in effective control?
Answer:
Importance of planning for a large business enterprise:

• Planning makes objectives clear and specific: The planning exercise makes the goals clear and specific because it begins with the determination of objectives.
• Planning provides directions: Due to planning employees and managers know how their activities relate to organisational goals.
• Planning reduces the risk of uncertainty: Planning helps to reduce the risks associated with uncertainties. In the process of planning attempts is made to look into the future and predict it.
• Planning facilitates decision-making by the manager: Planned targets are indicators on the basis of which alternative courses of action are considered.

Question 7.
What is the after-sale service?
Answer:
After sale-service means that service which is provided continuously for looking after the product after the sale.

Question 8.
Why is time boundness essential in a project?
Answer:
Project is a written account of various activities undertaken by a firm or entrepreneurs and their technical, commercial and social feasibilities. Project is made after analysis of essential document therefore there is a time limit for making project because of the project is made for particulars time and subject.

Question 9.
What do you mean by the cycle of working capital?
Answer:
Availability of enough working capital is indicative of liquidity of business and capacity to make prompts payments. Working capital is needed for making payment of day to day expenditure for meeting current liabilities and for availing benefit of cash discounts.

Question 10.
Mention any three factors affecting the growth.
Answer:
Following are the factors affecting the growth:

• Competition
• Change in technology
• Consumer trends
• Creativity
• Innovations.

Question 11.
Define Entrepreneurship and state its two features.
Answer:
As per thinkers of this viewpoint, entrepreneurship is the promotion of business and industry, organisation and capacity to undertake risks.
Definition: According to Horton Evans, “The entrepreneur is a person or group of persons who has the task of determining the kind of business to be operated.” According to forest frontz, “The entrepreneur is more than a manager. He is an innovator arid promotor as well.
Following are the features of entrepreneurship:

• Taking risks
• Profit oriented
• Group of persons
• Promoting business.

Question 12.
What is market feasibility?
Answer:
Market feasibility means selection of good market for enterprises.

Question 13.
How do entrepreneurs differ from employees?
Answer:
Entrepreneurs differ from employees are explaining by the following points:
Entrepreneur:

• An entrepreneur is a person who takes the risk to set-up an enterprise.
• The entrepreneur always face risk of profit or loss.
• An entrepreneur takes decision.

Employee:

• An employee is that person who is appointed by an entrepreneur for his help.
• The employee never face the risk of profit or loss.
• An employee does not make a decision.

Question 14.
What is the plant layout?
Answer:
Plant layout refers to that work which is done for setting up the plant and placement of the plant and machinery.

Question 15.
What is the role of planning in effective control?
Answer:
To facilitate control: By means of judicious planning, every manager executive tries to enforce his control to the best of his capacity over his subordinates in terms of their performance. In order to make the planning effective and meaningful, the performance of the subordinates can be adequately measured. Not only this even budget is an organ of planning and also a tool of control. Moreover,it also strengthens the administrative control. In America, once a high -profit administrator during the course of his conversation with one of his friends remarked that since 5 o’clock till the time of leaving the office .whatever had happened is no matter of anxiety because he could not help change it and he would think about what was likely to happen the following day and the following year because doing something on that account on that account lay in his power.

Question 16.
Why it is understood that entrepreneurship is active creativity.
Answer:
Entrepreneurship is creative in the sense that it involves the creation of value. By combining the various factors of production, entrepreneurs produce goods and services that meet the needs and wants of society. Every entrepreneurial act results in income and wealth generation. Even when innovations destroy the existing industries.

Entrepreneurship is creative also in the sense that it involves innovation—the introduction of new products, the discovery of new market and sources of supply of inputs, technological break thoughts as well as the introduction of newer organisational forms for doing things better, cheaper, faster and in the present context, in a manner that causes the least harm to the environment. It is possible that entrepreneurs in developing countries may not be pioneering innovative in introducing path-breaking, radical innovations.

Question 17.
Give three differences between shares and debentures.
Answer:
Difference between shares and debentures:
Share:

• A share is a symbol of ownership. It represents a portion of the capital.
• It is ownership security.
• A shareholder enjoys the voting right.
• The dividend is paid on shares. It is an appropriation of profit
• A share is unsecured.
• Shares can not be converted.

Debenture:

• A debenture is the symbol of loan. It represents the debt of a company.
• It is editorship security.
• A debenture holder does not have voting right.
• Interest is paid on debentures.lt is a charge against profit.
• A debenture is secured on the fixed or floating charges.
• Debentures can be converted into shares.

Question 18.
What is project identification?
Answer:
Before selling up of any enterprises, to searching for profitable opportunities and effective formation of the project by the entrepreneur is called project identification.

Question 19.
Is management in Art or Science?
Answer:
Management is both art and science. Management in the form of science, provides necessary guidance to managers because of its practical utility and application (in the form of principles) and management in the context of art helps the management to face very situation (by adopting the best possible way to do any work). Hence, it is logical to call management science as well as art.

Management is both an art and science, as well and are so well-knitted, that are inseparable. As an art, the management refers to behavioural sense, efficiency, skill, constructive thoughts ideas and development through practice etc.and in form of science, it refers to cause and effect, experimentation of rules, ability and a sense of forecast, etc. Thus, management is a dichotomy of art and science.

Question 20.
State one objective of project planning.
Answer:
The objective of the project report: To the evolution of investment opportunities.

Question 21.
What is Marketing Mix?
Answer:
Marketing mix implies a combination of all marketing elements or ingredients so that the objectives of the enterprise may be realised. The various elements of the mix are product, price, place and promotion.
According to Borden.” marketing mix, is the appointment of effort the combination the designing and the integration of the elements of marketing into a programme or mix which on the basis of the marketing forces, will best achieve the objectives of an enterprise at a given time.”

Question 22.
What is Gestation period?
Answer:
Gestation period means such period before starting of any enterprises. In other words, Planning period before setting up new enterprises.

Question 23.
What are the opportunity cost and joint cost?
Answer:
Austrian economists modified the concept of real cost and presented the concept of opportunity cost. Resources are limited to unlimited needs and hence, the production of one good means the sacrifice of the other. According to Benham, “The opportunity cost of anything is the next best alternative that could be produced instead by the same factors or by an equivalent group of factor costing the same amount of money. “Opportunity cost of a factor refers to its value available in its next best alternative use. The total expenses made by a firm for producing a particular quantity of the commodity is known as the total cost. In short-run, total cost includes both fixed as well as variable cost while in the long run, total cost includes the variable cost.

Question 24.
Give the formula of B.E.P.
Answer:
BEP = F×SS−V
Where, F = fixed cost
S = Projected sales
V = Variable cost

Long Answer Type Questions

Question No. 19 to 24 are Long answer type. Answer any 3 questions. Each question carries 5 marks. (3 × 5 = 15)

Question 19.
Why is the market assessment necessary for entrepreneurship?
Answer:
Market Assessment: The demand for products or services and the supply, apart from such factors, depends on various other factors,e.g., quality of the product, source of supply and tools of distribution. While assessing a market an entrepreneur must take care of the following things:
(i) Demand: The estimate of the demand must be determined after the product identification. While forming an estimate of the demand, the size of the market or the area should be taken care of in which the product is to be sold.

(ii) Supply and competition: The aspect of supply of the merchandise is of paramount importance at the time of market assessment. Supply refers to the replenishment of the goods from all resources. Even the imminent supply of goods and its resources should also be taken care of. The consideration of demand and supply should always be kept in mind. Generally, there is always a competition in terms of supply of almost all the products.

(iii) Cost and Price of the product: As already indicated that in determining the identity of a product, its cost is a major factor. On the basis of the cost of a product, the price is determined and this factor must be viewed in the wake of the prices of other competitive products.

(iv) Project Innovation and change: To facilitate the process of market analysis it becomes essential to look for innovative changes and to study the scope which is the job of an entrepreneur. It is also imperative to understand the technical advantages of such innovative change and its impact on the product reliability cost and its price.

Question 20.
What is the importance of quality control?
Answer:
Quality control refers to the finer characteristics of a product for the acquisition of which the control over the human resources and manufacturing conditions and factors, is acquired which can influence the finer qualities of the product.

All the ingredients required for the manufacturing of a product are, directly or indirectly, procured from nature itself and affect their characteristics due to some natural reasons, on the other hand, the manufacturing conditions like temperature, moisture, dust, impurity in air, movement or disturbance in the types of equipment, and wear out machines, etc, can bring about some changes in the manufacturing processes such, the right composition and ensure an authentically quality product, complete control over such conditions must be taken care of by which the quality may not get affected. According to G.J. Deshmund, “Quality control is a scientific technique the objective of which is to enhance the industrial or manufacturing efficiency which must satisfy the projected standards.”

Question 21.
Why is it essential to study the environment for an entrepreneur?
Answer:
The process of environmental scanning and analysis is very important to an entrepreneur. The evaluation of the existing changing circumstances the forecasting and the consequent impacts need to be assessed by an entrepreneur prior to determining his policies and planning and their successful implementation.

It is essential to evaluate and analyse the consequences of the changing business environment prior to giving a tangible shape to the planning and policies. The technical innovation, new social values problems of the community product market conditions etc. must be subjected to study which is instrumental in converting strategies and planning into reality. The competitive environment and its consideration is also an integral part of environmental scanning. To plan or conceive the counter strategies in view of the competitive threats, the environmental study and analysis is the prerequisite in this regard by a close study and a survey of the competitive threats, the environmental.

Question 22.
What are the main reason for management importances?
Answer:
Following are the reasons that are why management is important.

• Maximum results with minimum resources: Management tries to secure the maximum results through the use of minimum efforts and resources.
• The realisation of personal objectives: Some industrial concerns are doomed on account of strikes and lockouts. Such situations mainly arise when there is his management on the part of managers. Proper management visualises the situation and takes timely action in order to avoid any untoward happening.
• Economic growth: Management is a vital force for boosting the economic growth of a country. Until recent; it was thought that economic growth is mainly due to technology education and capital.
• Protection of investors interests: Most of the organisations are run by employees managers. They look after the interest of investors viz. Shareholders, debenture holders etc.

Question 23.
What are the two objectives of financial planning?
Answer:
Financial planning is the essential preparation of a financial blueprint of an organisation’s future operations. The objective of financial planning is to ensure that enough funds are available at the right time. It enables the management to foresee the fund requirements both the quantum as well as the timing. Likely shortage and surpluses are forecast so that necessary activities are taken in advance to meet those situations. Thus, financial planning strives to achieve the following objectives:

• To ensure availability of funds whenever these are required: This includes a proper estimation of the funds required for different purposes such as for the purchase of long-term assets or to meet day-to-day expenses of business etc.
• To see that the firm does not raise resources unnecessarily: funding is almost as bad as inadequate funding. Even if there is some surplus money, good financial planning would put it to the best possible use so that the financial resources are not left idle and don’t unnecessarily add to the cost.

Question 24.
Explain the various steps including in controlling process.
Answer:
Controlling is a systematic process involving the following steps:

• Step-I: Setting performance standards: The first step in the controlling process is setting up of performance standards. Standards are the criteria against which actual performance would be measured. Standards can be set in both quantitative as well as qualitative terms.
• Step-II: Measurement of actual performance: Once performance standards are set the next step is the measurement of actual performance. There are several techniques for the measurement of performance. These include personal observation, sample checking, performance reports, etc.
• Step-III: Comparing actual Performance with standards: This step involves a comparison of actual performance with the.standard. Such a comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms.
• Step-IV: Analysing Deviations: Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations. Critical point control and management by exception should be used by a manager in this regard.
• Step-V: Taking corrective action: The final step in the controlling process is taking corrective action. No correction action is required when the deviations are within acceptable limits.