Commerce (English Medium) Class 12 - CBSE Question Bank Solutions for Entrepreneurship

Answer each of these questions in about fifteen words

When the right issue are proposed to the existing shareholders and if they are not ready to subscribe what is the next step taken by an entrepreneur?

Answer each of these questions in about fifty words:
An entrepreneur is a person who bears the risks, unites various factors of production and carries out a creative innovation, and for doing all these, what is the basic requirement to be reached to this extent.

Answer each of these questions in about two hundred and fifty words:

When an entrepreneur decides to go public and become a public company, he/ she tends to be in advantageous position and get many benefits out of it. Explain the benefits.

Answer each of these questions in about fifty words:

What do you understand by venture capital?

Answer each of these questions in about fifty words:

Enlist several categories of financing possibilities in which smaller ventures sometimes rely on.

Answer each of these questions in about fifty words:

Why are venture capitalists typically very selective in deciding while doing the investment?

Answer the question in about one hundred and fifty words:

What are the features of venture capital finance?

Answer each of these questions in about one hundred and fifty words:

When can an entrepreneur seek venture capital financing?

High Order Thinking Skills

Why it is said that “A venture capitalists investments are illiquid”. Give reason.

High Order Thinking Skills

“TFCI is playing vital role in the development of entrepreneurship in modern economy”. Comment.

Value Based Question

By offering shares to its employers what values are promoted by a company.

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)
  1. Cash - 60,000
  2. Stock - 50,000
  3. Trade Debtors - 65,000
  4. Short-term investment - 15,000
• Liabilities: (in Rupees)
  1. Short-term loans - 25,000
  2. Trade creditors - 5,000
  3. Outstanding expenses - 10,000

Why is a private company more desirable than a public company? Give any two reasons.

Arpit, an entrepreneur, was short of capital. He was worried about the fact as to how he will reach out to his customers. He met his friend who is at present working in a start-up firm. He explained to Arpit a way to reach customers without any middlemen which will help him overcome the shortage of cash. So, Arpit decided to keep his channel of distribution simple as advised by his friend.

1. Identify the channel of distribution adopted by Arpit.
2. Explain the channel of distribution mentioned above.
3. Give any two of advantages of this type of channel.

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.

What will be the Net Working Capital of Sukhom Ltd. from the given data?

State any two objectives of problem identification.

How is the channel of distribution influenced by the type of buyer?

The role of a venture capitalist in an organization is dependent on the stage at which an organization is being funded by the venture capitalist. Evaluate.

Explain the ways in which one business can acquire another.