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Kavita started a boutique named ‘Stylo queens’. She replaced old sewing machines with new one’s during the pandemic to manufacture masks and PPE kits. Gradually her boutique became popular and seeing the swelled up demand for her products she further installed extra machines to cater to the growing demand of the increasing customers. From the profits earned, she decided to further expand the business by starting a new business of cushion covers and bed sheets.
- Identify the type of expansion mentioned above.
- What is the net result of such an expansion?
- Explain the expansion discussed above.
Concept: Growth and Development of an Enterprise
Franchising is advantageous for both franchisor and franchisee. Explain five advantages of franchising for the franchisee.
Concept: Franchising
How is franchising a better option for external expansion in case of start-ups?
Concept: Franchising
What is the most essential component of mergers? Distinguish between the two forms of this component. How does this factor play a key role in deciding whether any organization should go for a merger?
Concept: Reasons for Mergers and Acquisitions
Differentiate between ‘merger’ and ‘acquisition’ as forms of external expansion
Concept: Growth Through Mergers and Acquisitions (M and A)
Explain the ways in which one business can acquire another.
Concept: Meaning and Types of Acquisitions
Which amongst the following values would help an entrepreneur to determine the Return on Investment?
- Net Profit
- Gross Profit
- Inventory carrying cost per unit.
- Total Capital Invested
- Weighted average contribution
Concept: Return on Investment and Equity
Given below are information obtained from the balance sheet of PQR ltd., What will be the gross working capital for PQR ltd. for the year ending 31st March 2022?
- Assets: (in Rupees)
- Cash - 60,000
- Stock - 50,000
- Trade Debtors - 65,000
- Short-term investment - 15,000
- Liabilities: (in Rupees)
- Short-term loans - 25,000
- Trade creditors - 5,000
- Outstanding expenses - 10,000
Concept: Working Capital
A grocery owner has an equity stake of ₹ 40,000/- in the business. He has borrowed ₹ 60,000/- at the interest rate of 10% per annum. He made a net profit of ₹ 20,000/- in one year.
What will be the Return on Equity for the grocery owner?
Concept: Return on Investment and Equity
VG Ltd. uses EOQ logic to determine the order quantity for its various components and plan its orders. The Annual consumption is 80,000 units, Cost to place one order is ₹ 1,200; Cost per unit is ₹ 50 and carrying cost is 6% of Unit cost.
What is the EOQ for VG Ltd.?
How will the calculation of EOQ benefit VG ltd.?
Concept: Inventory Control and Economic Order Quantity
Mr. Dhambani is the CFO of Cherico Industries. He has to present the analysis of the financial health of the company during the last financial year, 2022-2023. He is making a presentation for the Annual Board Meet. To clearly explain the position he needs to work on:
- Financial Plan
- Economic order quantity
- Return on Investment
- Break Even Analysis
- Return on Equity
Concept: Return on Investment and Equity
What will be the Net Working Capital of Sukhom Ltd. from the given data?
| Cash | Rs. 2,00,000 |
| Account Receivables | Rs. 1,50,000 |
| Account Payables | Rs. 65,000 |
| Inventory | Rs. 3,00,000 |
| Short term borrowings | Rs. 1,00,000 |
| Outstanding Salaries | Rs. 50,000 |
Concept: Working Capital
Given below is the data from the cost sheet of ‘Shiv Dhaba’. Calculate the unit price per customer from the information provided.
| Week | Number of people taking meals |
Average amount billed (in Rs.) |
| Week 1 | 120 | 150 |
| Week 2 | 60 | 205 |
| Week 3 | 70 | 146 |
| Week 4 | 80 | 221 |
| Week 5 | 90 | 240 |
Concept: Concept of Unit Price
Fast Rite Ltd. manufactures a variety of stationery, but its most popular product is its pen. Three varieties of pens to suit the needs of its users.
The details of the pens are given in the table below.
| Variety | Classic Gel Pen | Executive Ball Pen | Four-in-one Ball Pen |
| Selling Price per unit (in rupees) |
15 | 21 | 36 |
| Variable cost per unit (in Rupees) |
9 | 14 | 19 |
| Sales Mix | 20% | 20% | 60% |
The total fixed cost is Rs. 2,56,000.
Calculate the following from the information given above.
- Total weighted average contribution margin
- Breakeven Quantity for each variety
- Break-even (in Rupees) for Four-in-one Ball Pen
Concept: Break Even Analysis
The quantity of jeans sold by a shop is 1,200 per month @ ₹ 1,100/-. The cost of placing an order and receiving goods is ₹ 1,500/- per order. The inventory holding cost is ₹ 30/- per annum. What is the economic order quantity for the shopkeeper?
Concept: Inventory Control and Economic Order Quantity
Answer the question in about one hundred and fifty words:
What are the features of venture capital finance?
Concept: Venture Capital
Who plays a very vital role as a financial intermediary?
Concept: Concept of Financial Market >> Capital Market in India
State any one advantage each for a company that opts for private placement and rights issue as a source to raise funds.
Concept: Concept of Financial Market >> Capital Market in India
State the role of an angel investor in an entrepreneurial pursuit.
Concept: Angel Investors
An entrepreneur may need the venture capitalist in the second stage of financing or as a source of bridge financing but he should always go in for due diligence before opting venture capital as a source of finance.
Comment on the given statement from the perspective of an entrepreneur.
Concept: Venture Capital
