Bihar Board 12th Entrepreneurship Model Question Paper 5 in English Medium

Bihar Board 12th Entrepreneurship Model Papers

Bihar Board 12th Entrepreneurship Model Question Paper 5 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.
Management is an art.
(a) Self-working
(b) Working with others
(c) (a) and (b) both
(d) None of these
Answer:
(b) Working with others

Question 2
Project appraisal is an
(a) Export Analysis
(b) Expert Analysis
(c) Profitability Analysis
(d) None of these
Answer:
(b) Expert Analysis

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

Question 6.
Project identification deals with
(a) Variable product idea
(b) logical opportunity
(c) effective demand
(d) None of these
Answer:
(b) logical opportunity

Question 7.
Responsibility of an entrepreneur is
(a) Towards society
(b) Towards government
(c) Towards environment
(d) All of them
Answer:
(d) All of them

Question 8.
Duty of an entrepreneur is
(a) Levying profit
(b) Tax evasion
(c) environmental pollution
(d) None of these
Answer:
(a) Levying profit

Question 9.
Integration means
(a) Expanding internally
(b) Expanding externally
(c) (a) and (b) both
(d) None of these
Answer:
(c) (a) and (b) both

Question 10.
Telephone expenses are
(a) Fixed
(b) Variable
(c) Semi variable
(d) None of these
Answer:
(c) Semi variable

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

Question 12.
Naked debentures are
(a) Fully secured
(b) partly secured
(c) Unsecured
(d) None of these
Answer:
(c) Unsecured

Question 13.
IDBI was established in the year.
(a) 1944
(b) 1954
(c) 1964
(d) 1974
Answer:
(c) 1964

Question 14.
Dividend is
(a) Net profit
(b) Appropriation of profit
(c) reserve fund
(d) Part of undistributed profit
Answer:
(d) Part of undistributed profit

Question 15.
Public deposits are the source of
(a) Short term finance
(b) Long term finance
(c) Medium-term finance
(d) Social investment
Answer:
(b) Long term finance

Question 16.
Marketing expenditure is a burden.
(a) On industry
(b) On businessman
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 17.
Labelling is
(a) Compulsory
(b) Necessary
(c) Voluntary
(d) Wastage of money
Answer:
(b) Necessary

Question 18.
The maximum wide scope is
(a) Brand
(b) Labelling
(c) Packaging
(d) Trademark
Answer:
(a) Brand

Question 19.
Management is
(a) Art
(b) Science
(c) Art & Science
(d) none of these
Answer:
(c) Art & Science

Question 20.
Venture capital through originated first in
(a) India
(b) England
(c) America
(d) Japan
Answer:
(d) Japan

Question 21.
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 22.
Ideal current Ratio is
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 4 : 1
Answer:
(a) 2 : 1

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

Question 24.
Closing stock is
(a) Source of fund
(b) Application of fund
(c) Not any flow of fund
(d) None of these
Answer:
(a) Source of fund

Question 25.
Long term loan bears.
(a) Fixed-rate of interest
(b) Flexible rate of interest
(c) Zero rates of interest
(d) None of these
Answer:
(a) Fixed-rate of interest

Question 26.
Accounting system is
(a) Single entry system
(b) double entry system
(c) Cost system
(d) Both (a) and (b)
Answer:
(b) double entry system

Question 27.
Subsidy is
(a) Discount
(b) Concession
(c) Repayment
(d) None of these
Answer:
(b) Concession

Question 28.
Of all management activities planning is the
(a) beginning
(b) End
(c) Beginning & end both
(d) None of these
Answer:
(a) beginning

Question 29.
The project report is a summary of:
(a) Facts
(b) Information
(c) Analysis
(d) All of these
Answer:
(d) All of these

Question 30.
A successful entrepreneur must possess the quality of:
(a) Leadership
(b) Control
(c) Innovation
(d) All of these
Answer:
(d) All of these

Question 31.
Debit to Receiver and giver to giver law is on :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) Business A/c
Answer:
(a) Personal A/c

Question 32.
Public deposit resources are:
(a) Short-term loan
(b) Long-term Loan
(c) Mid-term loan
(d) Social Investment
Answer:
(b) Long-term Loan

Question 33.
Brand indicates:
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Question 34.
It is not included in fixed cost
(a) cost of goods
(b) cost of labour
(c) cost of power
(d) cost of factory
Answer:
(c) cost of power

Question 35.
Dividend is:
(a) Net profit
(b) Appropriation of profit
(c) Reserve fund
(d) Undistributed profit share
Answer:
(d) Undistributed profit share

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 marks. (10 × 2 = 20)

Question 1.
What do you mean by “Motivation”?
Answer:
The concept of motivation is mainly psychological. It relates to those internal forces of an individual that impel him to act or not to act in certain ways. As it is well known that human beings have endless needs. They attach priorities to their needs. Managers diagnose their urgent needs and assure to fulfil them if they conform their behaviour to the requirements of the organisation. According to Terry and Franklin,” Motivation is the need or drive within an individual that drives him or her toward the goal.

Question 2.
What is an Organisation?
Answer:
An organisation is a social entity that has a collective goal and is linked to an external environment. The word is derived from the Greek word Nargaroth,’ itself derived from the better-known word ergon which means an organs-a compartment for a particular task.

A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organisations have a management structure that determines relationships between the different activities, and the member and subdivides and assign roles, responsibilities and authority to carry out different tasks. The organisation is open systems they affect and are affected by their environment. Forms of business organisation are as follows:

• Sole trader or sole proprietorship
• Joint Hindu Family Business
• Partnership
• Co-operative Organisation
• Joint Stock Company.

Question 3.
What are the functions of the stock exchange market?
Answer:
The efficient functioning of a stock exchange creates a conducive climate for an active and growing primary market for new issues. An active and healthy secondary market in existing securities leads to positive environment among investors. The following are some of the important functions of a stock exchange.

(i) Providing liability and marketability to existing securities: The basic function of a stock exchange is the creation of a continuous market where securities are bought and sold. Its gives investors the change to disinvest and easy marketability to already existing securities in the market.

(ii) Pricing of securities: Share prices on a stock exchange are determined by the forces of demand and supply. A stock exchange is a mechanism of constant valuation through which the prices of securities are determined.

(iii) Safety of transaction: The membership of a stock exchange is well-regulated and its dealings are well defined according to the existing legal framework.

Question 4.
What are Enterprises?
Answer:
The meaning of any enterprises to that enterprise in which there is a lot of risks, uncertain losses exist. The origin of enterprises in it and fight to get more profit and power. When a commercial institution and industrial organisation set up a business then it is called an enterprise. An enterprise is set up for more profit and earning his success in the market.

Question 5.
Why it is essential to “Project work”?
Answer:
A project is an organised unit dedicated to the pre-determined objectives. A project can be completed within a proposed time frame, within budget and in accordance with specifications of planning. A project is any business opportunity which can be exploited for profit.
Project work is essential is written on some points which are as follows:

• During the course of the project work, the students feel like doing something exceptional.
• Any project work adds to the practical knowledge of the students.
• Whatever the theoretical knowledge attained by the students from the texts, the possible doubts are dispelled by means of the project work.

Question 6.
What are the different types of accounting ratios?
Answer:
According to ratios are classified into four categories as follows:

1. Liquidity ratio
2. Solvency ratio
3. Activity ratio
4. Profitability ratio.

1. Liquidity ratio: Liquidity means the ability of the undertaking to pay its short term debts in time financial institutions and short-term creditors are interested in such types of analysis. Management can also make use of these ratios to find out whether the working capital is being used efficiently or not.
2. Solvency ratio: Solvency ratios indicate the firm’s ability to meet long-term liabilities. Here, the term ‘solvency ratios’ has been used to mean the long-term financial position of the business.
3. Activity Ratios: These ratios are known as velocity ratios, activity ratios, performance ratios, efficiency ratios or turn over ratios. The funds of the owner and creditors are used to finance various assets of the firm.
4. Profitability ratios or Income ratios: The operating efficiency of a firm and its ability to ensure an adequate return to its shareholders are reflected in the profits earned by it. Profitability ratios can be computed either on the basis of sales or on the basis of the investment. Profitability ratios are calculated in relation to sales.

Question 7.
Discuss the three advantages of management.
Answer:
The three advantages of management are as follows:
(i) Management helps in achieving group goals: Management is required not for itself but for achieving the goals of the organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of the organisation.

(ii) Management increases efficiency: The aim of management is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.

(iii) Management creates a dynamic organisation: All organisations have to function in an environment which is constantly changing. It is generally seen that individuals in an organisation resist change as it often means moving from a familiar, secure environment into a newer and more challenging one.

Question 8.
What is the marketing mix?
Answer:
The marketing mix is a set of marketing tools that the firm uses to pursue its marketing objectives in a target market. The variables or elements of marketing mix have been classified into four categories, popularly known as four Ps of marketing viz. product, price, place and product. These elements are combined to create an offer. A firm can reshape a market offering by bringing in a change in any of the variable under its own control say introducing a change in the price or promotion offer or product features or channel used to make the product available to buyers.

Question 9.
Who is an Entrepreneur?
Answer:
The term ‘entrepreneur’ was first introduced in economics by the early 18th-century French economist Richard Cantillon. The entrepreneur as the agent who buys means production at certain prices in order to sell the produce at uncertain prices in the future.” Since then a perusal of the usage of the term in economics shows, that entrepreneurship implies risk uncertainty bearing; coordination of productive resources; introduction of innovations; and the provision of capital Entrepreneurship is regarded as one of the four major factors of production, the other three being land, labour and capital. Entrepreneur set up his business. We can understand the three words, entrepreneur, entrepreneurship and enterprise by SVO analogy.

Question 10.
Explain three functions of marketing.
Answer:
Marketing is concerned with the exchange of goods and services from producers to consumers or users in such a way that maximises the satisfaction of customer’s needs. The three functions of marketing are as follows:

(i) Gathering and Analysing Market Information: One of the important functions of a marketer is to gather and analyse market information. This is necessary to identify the need of the customers and take various decisions for the successful marketing of the products and services.

(ii) Marketing planning: Another important activity or area of work of a marketer is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
For example, A marketer of colour TVs, having 10 per cent of the current market share in the country aims at enhancing his market share to 20 per cent, in the next three years.

(iii) Product Designing and Development: The design of the product contribute to making the product attractive to the target customers. A good design can improve performance of a product and also give it a competitive advantage in the market for example, when we plan to buy any product say a motorbike we not only see its features like cost, mileage, etc. also the design aspects like its shape, style etc.

Question 11.
Explain three objectives of advertising.
Answer:
Advertising is one of the most frequently used media of promotion of good and services, it attracts a lot of criticism. The three objectives of advertising are as follows:

(i) Adds to cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of the product, which is ultimately passed on to the buyers in the form of high prices. Advertisement of a product cost lot of money but it helps to increase the demand for the product as a large number of potential buyers.

(ii) Underlines social values: Advertising is undermined social values and promotes materialism. It breeds discontent among people as they come to know about new products and feel dissatisfied with their present state of affairs.

(iii) Encourage the sale of inferior products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior product. Advertising sell products of a given quality and the buyers will buy it suits their requirement.

Question 12.
How many types of opportunity?
Answer:
There are two categories of opportunities are as follows:
(i) Existing opportunities in the environment: There is some kind of opportunities which are already existing e.g., paper, cloth and footwear industry where some innovative devices are required to bring about some modification, novelty and distinction from the existing quality and look.

(ii) Created opportunities: Such opportunities are not pre-existing rather created in view of the aspirations of the consumers, changing fashion trends, technical innovations and according to the prevailing conditions, assume new forms.

Question 13.
What are the main types of the environment?
Answer:
The main types of environment are followed:

• Internal environment: Internal environment involves those factors which remain under the control of the entrepreneur i.e. land, production, capital, labour, building or venue and infrastructure, etc.
• External environment: These are the factors on which the entrepreneur has no control i.e, economical, social, political, technical, competitive, clientele, shortage and market, etc. These factors do influence the performance and the decision of the entrepreneur.

Question 14.
Explain four functions of Packaging?
Answer:
Some of the important functions are as follows:

• Product identification: Packaging greatly helps in the identification of the products, for example, Colgate in red colour, or ponds, the cream jar can be easily identified by its package.
• Product protection: Packaging protects the contents of a product from spoilage, breakage, leakage, pilferage, damage, climate effect etc. The kind of protection is required during storing, distribution and transportation of the product.
• Facilitating use of the product: The size and shape of the package should be such that it should be convenient to open handle and use for the consumers. Cosmetics, medicines and tubes of toothpastes are good examples of this.
• Product promotion: Packaging is also used for promotion purposes. A starting colour scheme, photograph or typeface may be used to attract attention of the people at the point of purchase.

Question 15.
What is the break-even point?
Answer:
Break-even pointBreak-even analysis is related to the study of cost and return of and investment in relation to the sales of a business unit. That point or level of sales at which the business makes no profit and no loss is termed as the break-even point.

Question 16.
What are the responsibilities of each entrepreneur in the environment?
Answer:
Responsibilities of each entrepreneur of the environment are any kind of tampering with the environment in terms of filing, pollution, contamination, etc. is a serious offence which is causing great harm to the present generation. In addition, it is raising a question mark on the fate of the coming generation. No doubt, the industrial units do cause pollution, more or less, to the environment, and it is the prime responsibility of an entrepreneur not to harm the environment in any way. The industrial waste, raw, residual, etc., must not be thrown into the water, its right use should be encouraged. Personal profit should not be the sole consideration here to the extent that the environment is polluted. The government is very serious about it and does not permit, even then an entrepreneur ought to be considerate at his own in this regard.

Question 17.
Explain the importance of advertisement in business.
Answer:
The importance of advertisement in business are as follows:

• To Introduce new product and services: It is through advertising that the people are to be informed about any newly launched product and include them to buy it.
• To increase sales: Another aim of advertising is to promote sales. A trader always strives to increase sales and with this purpose in mind, he does advertising.
• To create and develop new markets: One objective of advertising is to explore and develop new vistas or markets which is easier to do so by means of advertising.
• To sustain the existing demand: The objective here is not only to increase demand rather exploit the current or existing demand which requires repeated advertising.
• To educate the consumer: Advertising always directs the prospective buyers to the seller by inspiring and educating them about the product and facilities the efforts of the producers this is what the advertising does.

Question 18.
Discuss the nature of management.
Answer:
Management is both an art and science as well it is important to look at these two aspects distinctly before arriving and confirming the veracity of this statement. Management is an art: Management is regarded as ‘art’ which means in order to do something and to accomplish some objective exercise of ability and knowledge becomes imperative. Art is a technique, that provides a practical shape to theories or principles. Art is a means to get the desired results. The success of an artist is to be measured on the basis of his performance. As such, it is not inappropriate to regard the management are an ‘art’.

Management is a science: A systematic knowledge which is based on some principles is known as science or science is that branch of knowledge that helps in laying down of certain principles followed by some presumptions and experimentation.

Conclusion: Management is an art because it exercises both knowledge and ability in order to accomplish the predetermined objectives, thus as a science, it aims to attain knowledge by means of study and experimentation.

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.
Explain the characteristics of management.
Answer:
The basic characteristics of management are as follows:

• Management is a goal-oriented process: An organisation has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated. Different organisations have different goals.
• Management is all-pervasive: The activities involved in managing an enterprise are common to all organisations whether economic social or political. In other countries, they do it may be quite different. This difference is due to the differences in culture, tradition and history.
• Management is multidimensional: Management is a complex activity that has three main dimensions. These are:
  • Management of work
  • Management of people
  • Management of operations.
• Management is a continuous process: The process of management is a series of continuous, composite, but separate functions (planning, organising, directing, staffing and controlling). These functions are simultaneously performed by all the time.
• Management is a group activity: An organisation is a collection of diverse individuals with different needs. Every member of the group has a different purpose for joining the organisation but as members of the organisation, they work towards fulfilling the common organisational goal.
• Management is a dynamic function: Management is a dynamic function and has to adapt itself to the changing environment. An organisation interacts with its external environment which consists of various social economic and political factors.
• Management is an intangible force: Management is an intangible force that cannot be seen but its presence can be felt in the way the organisation functions. The effect of management is noticeable in an organisation where targets are met according to plans employees are happy and satisfied.

Question 20.
What are the steps taking by management in the planning process?
Answer:
Planning as well as knowledge is deciding in advance what to do and how to do. The steps are taking by management in the planning process are as follows:
(i) Setting Objectives: The first and foremost step is setting objectives. Every organisation must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation.

(ii) Developing premises: Planning is concerned with the future which is uncertain and every planner is using conjecture about what happens in future. Therefore, the manager is required to make certain assumptions about the future. These assumptions are premises.

(iii) Identifying alternative courses of action: Once objectives are set, assumptions are made. Then the next step would be to get upon them. There may be many ways to act and active objectives.

(iv) Evaluating alternative courses: The next step is to weigh the pros and cons at each alternative. Each course will have many variables which have to be weighed against each other. The positive and negative aspects of each proposal need to be evaluated.

(v) Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with least negative consequences.

(vi) Implementing the plan: This is the step where other managerial functions also come into the picture. The step is concerned with putting the plan into action i.e. doing what is required.

(vii) Follow-up action: Plans are being implemented and activities are performed according to schedule is also part of the planning process.

Question 21.
What are the differences between the capital market and money market?
Answer:
Capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested. It consists of a series of channels through which savings of the community are made available for industrial and commercial enterprises and for the public in general, It directs these savings into this most productive use leading to growth and development of the economy. The capital market consists of development banks, commercial banks and stock exchanges. It is essential that financial institutions are sufficiently developed and that market operations are free, fair, competitive and transparent.

The money market is a market for short term funds which deals in monetary assets whose period of maturity is up to one year. It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued
and actively traded every day. It enables the raising of short-term funds for meeting the temporary shortages of cash and obligations and the temporary deployment of excess funds for earning returns.

Both the money market and the capital market are the centres which arrange for the transfer of funds from the suppliers of funds to the users of funds. They differ, however in regard to the maturity periods of the financial assets created and debt with for affecting the transfer of funds. Money market arranges for short term and the capital market provides for medium to long term funds. The time length of short-term funds is less than and up to one year.

Question 22.
What are the elements of marketing mixture?
Answer:
The elements of the marketing mix are classified into four categories, popularly known as four Ps of marketing. These are:

1. Product
2. Price
3. Place and
4. Promotion, are discussed as follows :

1. Product: Product means goods or services or ‘anything of value, which is offered to the market for exchange, for example, Hindustan lever, company offers a number of consumer products like toiletries (close-up, toothpaste, lifebuoy, soap etc.) The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.

2. Price: Price is the number of money customers has to pay to obtain the product. Level of price affects the level of their demand.

3. Place: Place or physical distribution include activities that make firms products available to the target customers. Arises relate to managing inventory, storage and warehousing and transportation of goods from the place it is produced to the place it is required by the buyers.

4. Promotion: Promotion of products and services include activities that communicate availability features, merits, etc of the products to the target customers and persuade them to buy it. The promotional activities and spend a substantial amount of money on the promotion of their goods through using advertising, personal setting and sales promotion techniques.

Question 23.
Explain the various elements of a company which affected the distribution of company’s dividend?
Answer:
Elements affecting the distribution of a dividend of a company.
Dividend and companies Act:

• For any financial year, the company can declare or pay dividend out of those profits of the company for that year which is arrived at after providing depreciation in accordance with the provisions of schedule ” u/s 123 (1)(a)
• If there are undistributed profits of the previous year or years, the company can declare or pay dividends out of such profits which are left over after providing depreciation in accordance with section 123(1)a.
• The company can declare or pay dividend out of money provided by central govt, or state govt.
• The company may, before the declaration of dividend in a financial year may voluntarily transfer some profits to reserve.
• The company can declare or pay dividend out of both types of profit as mentioned in (a) & (b).
• The dividend shall be payable only in cash. However, profits or reserves can be capitalized for the issue of fully paid bonus shares or for paying up any amount for the time being unpaid on any shares held by the members of the company.

Question 24.
What is the importance of packaging in the marketing object?
Answer:
Marketing has been referred to as the performance of business activities that direct the flow of goods and services from producers and consumers. In this process, producers should satisfied customers then every step is very important when producers launch a product in the market. So, the packaging is also a very important stage in preparing product.

Packaging refers to designing the package for the products. After packaging labelling is also very important. Packaging and labelling have become so important in modem day marketing that these are considered as the pillars of marketing. The packaging is important not only for the protection of the products but also serves as a promotional tool. Sometimes the quality of the product is assessed by the buyers from the packaging.

We have seen that in the success of many of the consumer brands in recent times such as Kurkure, lays chips potato waters, clinic plus shampoo, and Colgate, toothpaste etc. Packaging has. played an important rate. Packaging and labelling is the first impression of any product customers attracted by packaging and labelling. Each and every product shoulds attractive look to high demand in the market.