Solved Board Paper For CBSE Class 11 Entrepreneurship

Entrepreneurial barrier faced by John is motivational barrier.

Business Intelligence includes technologies and applications for the collection, analysis, and presentation of business information in a way that yields information that a business can act on. This helps in enhancing the strategic decision-making capabilities, improve their performance, mitigate risk and create new business models.

Publicity involves gaining attention of public by presenting information through news sources like TV channels, newspapers, radio, etc. it is an uncontrolled form.

Depreciation is not a cash outflow as it is a non-cash expense which is subtracted from value of fixed assets in the books every year and no cash is paid for depreciation by firms.

The fixed capital needs of AJ manufacturers will be high as companies that plan to expand and grow their business require more funds for investment, thus increasing the fixed capital needs.

Feasibility study needs to be carried out by Jake for knowing about the viability of business project.

Personal barriers involve negative perspective towards entrepreneurship. People want secure jobs as they think entrepreneurship is risky and thus only a few people set-up their own enterprise.

Yes, family support is important for the growth of an entrepreneur.

Family's support, both morally and financially is very important. Unemployed youth can borrow initial funds from family and friends.

Also, Attitude of family also affects an entrepreneur. Families emphasise more on professional education of their children rather than funding a new business venture where risk is involved.

A business plan would be required to be prepared by Varun as it is a blueprint of things to be done in future.

It also acts as a guide to the entrepreneur in raising the factors of production.

It helps to direct the activities of the business venture and measures progress of the venture at successive stages.

Business risk is of two types:

• Insurable risks: These risks can be anticipated and their probability can be known. The burden of these risks is passed onto the insurance companies
• Non-insurable risks: The burden of these risks fall on the entrepreneur himself as the probability cannot be determined.

Mehak used power of social media to promote her business.

Many websites like Google, Facebook, Instagram, Twitter, smart phones, tablets and e-readers are reshaping the way companies conduct business and collaborate with other businesses. It helps business firms to promote their products to large number of people and gain popularity.

Social website enables businesses to understand the needs and wants of consumers

A combination strategy can involves combination of stability, growth or retrenchment strategies followed by businesses during same or different time periods so as to achieve its objectives.
A combination involves adopting two or more strategies.
In large diversified companies, combination strategy is followed for different divisions

• Term loans are the loans extended by the banks to their customers for buying a house, machinery, vehicles, etc.
• These loans are for a fixed period of time and the borrower repays the money back in monthly/quarterly/half yearly/annual installments.

Following can be the inflow of cash for a car-service company:

1. Money paid by customers for car repairing
2. Charges levied for extending free services

Sam is an agricultural entrepreneur.

Agricultural Entrepreneurs:

• These entrepreneurs are the ones undertaking agricultural and allied activities as an area of business.
• They are engaged in growing and marketing different crops, fertilizers and other inputs of agriculture.
• They employ new and modern techniques, machines, good quality seeds and irrigation facilities, etc.

a. Ability to persuade

• An entrepreneur should know how to influence environment comprising of individuals and institution, for mobilising resources, obtaining inputs, organising production and selling products and services.
• He should know how to highlight strong points of product or service in market and explain technological competencies of their enterprises to produce quality goods and services.

b. Planning

• With limited resources in terms of time, finance and manpower, an entrepreneur invest their savings and total energy in creating entrepreneurial ventures.
• Detailed blueprint through systematic planning is required for putting the whole enterprise into operation.

A major problem faced by women entrepreneurs is social barriers in the form of traditions and customs that bound the growth of women entrepreneurs.

These traditions and custom of Indian society in the form of early marriage, pardah system, men given more importance in family, etc. affects growth of a women.

Such barriers can be overcome through education and positive attitude towards women wanting to become entrepreneurs.

The part of business plan missing is Marketing plan.

Marketing Plan

It is that part of a business plan that provides information related to:

• Products and services being sold to consumers
• Different strategies related to elements of marketing mix
• Pricing policies and strategies
• Decisions related to channels of distribution
• Distribution and transportation of goods
• Promotion tools to be used for selling products and services

• X-rays was invented by a physicist, Wilhem Roentgen
• He was interested in investigating the properties of cathode ray tubes.
• During the experiment, He observed that sheets of fluorescent paper in his lab were illuminated when light passed through the tubes, irrespective of the fact that his machine had an opaque cover.
• As a result, this led to innovation of X-rays.

Business Incubators refer to group of people or organization designed to speed the growth and success of entrepreneurial companies.

They help startups getting funds by providing following assistance:

• They help firms to make connections with angel investors
• They provide assistance to companies in venture capital presentations and connecting them to venture capitalists
• Assist start-ups for applying for loans
• Guides companies in accessing government agency’s business assistance grant programmes.

Cloud Computing:

• It involves storing and accessing data and programs over the internet instead of computer’s hard drive.
• This helps an organization to upload all its data on a cloud and access it even from remote areas, when required.
• Widespread cloud computing transforms businesses and business models and reduces both initial and recurring costs and also helps in reducing risks.
• Despite some doubts related to security and privacy of data, cloud computing is a success for businesses.

The market strategy that can be adopted by company is retrenchment and divestment strategies

Retrenchment refers to cutting down or reducing.

Divestment is a type of retrenchment strategies used by business when they plan to downsize their operations.

Divestment involves elimination of unprofitable, unmanageable and unrelated portion of business.

Firms sells or close a business unit, division or product line. It is a result of adopting growth strategies.

Firms opt for divestment strategy so as to focus on areas where they have competitive advantage

The internal factors related to business risk can be controlled by the company as these occur due to any problem arising within the company.

Following are responsible for internal factors:

• Human factors: It includes factors such as

• Strikes, lock-out by the trade unions
• Negligence and dishonesty of an employee
• Accident or death of a key person in the company incompetence of managers or of other key persons in the organization
• Failure of suppliers to supply the materials or goods on time
• Default in payment by debtors, etc.

• Technological factor: These can be because of unforeseen changes in the techniques of production or distribution that lead to technological obsolescence.
• Physical factors: These include failure of machine and equipment used in business, fire, theft in the industry, damages in transit of goods, etc. that result in loss or damage to the property of the firm

Total packets sold in one day: 50

Unit price of a packet: 35

Unit Cost of a packet: 20

Total cost of 50 packets: 50 x unit cost of a packet

= 50 x 20

=1000

Total sale price of 50 packets: 50 x unit price of a packet

= 50 x 35
= 1400

Gross profit= total selling price – total cost

= 1400 – 1000

= 400

Hence, the gross profit earned by the bakery is 400

There are different sources that can shape or affect the behaviour i.e. attitude of an entrepreneur.

These include:

• Personal experience: The quality of direct experience with the attitude object determines his/her attitude towards it.
• Group influence: People are influenced by members of the group to which they belong. Groups are important in affecting a person's attitudinal development.

• Influential others: Personal contact with influential persons such as friends, relatives, experts and celebrities also changes a person’s attitude.

There are four core values which are found in all the entrepreneurs. These are:

• Innovation and Creativity

Creativity is about seeing new ways of doing things and Innovativeness is implementing it in practice.

For an entrepreneur, innovativeness is about trying out and working on new ideas, facing uncertainty while trying out new ideas, finding problems and solving them, knowing about new use for existing products or processes, etc.

• Sense of independence or Ownership: Entrepreneurs are satisfied with the sense of 'independence' or 'ownership‘. Their strong and positive ego drive enables them to define their goals and achieve it through commitment, sense of identification sincerity and hard work.
• Respect for Work: Entrepreneurs believe in the hard work as it can make everything possible. The respect for work provides direction to the goal that encourages them to pursue a path that leads to a path of rewards due to degree and quality of efforts put in the work
• Quest for Outstanding Performance: Challenges stimulate and motivate the dynamic entrepreneurs. They value performance of a high order as they have strong motivation to succeed. An entrepreneur is an 'over comer' who can resolve problems under pressure due to his/her quest for excellence.

McClelland's Theory of Need

According to David McClelland, there are three motives that drive people regardless of their culture or gender.

These are:

• Achievement needs
  • This involves the wish of the peoplr to take responsibility for solving the problems, mastering complex tasks, setting goals and getting feedback on the level of success.
  • Such people are motivated by standards of excellence, delineated roles and responsibilities and concrete, timely feedback.
• Affiliation needs
  • It is characterised by a desire to belong, enjoy teamwork, be concerned about interpersonal relationships and reduce uncertainty.
  • People with affiliation needs are motivated when they achieve things with people they know and trust.
• Power needs
• This is characterised by a desire to control and influence others, a need to win arguments, persuade and prevail.
• It is activated when people are free to have an impact, impress those in power, or beat competitors.

1. It is inflow of cash as money is borrowed from banks which increased the cash position

2. It is inflow of cash as sale of assets results in increase in cash

3. It is outflow of cash as payments are made to labour resulting in decrease in cash

4. It is outflow of cash as money is paid to outsiders for Advertising

5. It is inflow of cash as grant is received by government for research

Note: Building rent is considered as fixed cost.

Rent for 3 months= 3000 x 3= 9000

Income statement of M/s Shyam ltd.

For the year ended……

Entrepreneur must know the following about taxes-

1. The government keeps changing the tax structure every year in budget, so he/she should keep themselves updated about the changes.

2. They should hire experts or take advice about the taxation policies.

3. Entrepreneur may need to act as an agent on behalf of government for collecting taxes from employees, customers, etc.

4. He/she would have to pay sales tax, VAT, etc. on purchase of raw materials, so as an importer, they have to pay custom duty and other taxes also.

5. An exporter does not have to pay custom duty and can go for duty draw back.

Following steps for conducting market survey would be required to be carried out by the marketing manager:

1. Planning of survey:

The entrepreneur should lay out a plan as to what information he/she needs.

An entrepreneur needs to:

• Specify the problem clearly
• Choose the most appropriate method for conducting survey
• Decide the area and size of the study i.e. whether the entrepreneur he/she would survey each unit or would use sampling method
• Prepare questionnaire as it needs to be relevant as per the objective of the study.

2. Field work

This step involves going out and conducting survey so as to gather information.

An entrepreneur needs to ensure that:

• Survey is properly supervised
• Investigators carrying out field work are properly trained
• Survey is conducted on time
• Information is reliable and honest
• Data is collected carefully

3. Data interpretation and analysis

An entrepreneur should makes sure that the data is properly edited, interpreted, statistically analysed and presented in proper form.

4. Report making

Under this, final results are summarized. This reports serves as the basis for taking decisions related to business operations.

A market survey report is prepared containing:

• Important findings of the study
• Short summary of results
• Suggestions and recommendations

Various promotional tools which are used by companies are:

• Advertising: It is a non - personal and paid form of presentation or promotion of goods, services or ideas. It helps in increasing the demand for a product or service.
• Sales promotion: It refers to short-term Incentives, which are designed to encourage the buyer to make immediate purchase of a product or service.
• Personal selling: It involves direct contact with prospective customers and inducing them to buy products and service so as to increase sales.
• Publicity: It involves gaining attention of public by presenting information through news sources like TV channels, newspapers, radio, etc. it is an uncontrolled form.
• Public relation: It involves a variety of programmes for promoting a new product and building a company’s image.
• Exhibitions and demonstrations: It involves promoting and displaying products in fairs, exhibitions so as to make consumers aware about it.