#### Chapters

#### CBSE Class 12 ENTREPRENEURSHIP

## Chapter 5: Business Arithmetic

#### Chapter 5: Business Arithmetic Exercise Very short answer (exceed 15 words) solutions [Page 208]

Explain the following term with proper example:

SKU

Explain the following term with proper example:

Cash flow

Explain the following term with proper example:

Cash inflow

Explain the following term with proper example:

Cash outflow

Explain the following term with proper example:

Re-order point

Explain the following term with proper example:

Cash flow projection

Explain the following term with proper example:

Cash conversion cycle

Explain the following term with proper example:

Pareto’s Law formed the basis for a technique. Name it.

#### Chapter 5: Business Arithmetic Exercise Short answer (exceed 30 words) solutions [Page 208]

What is ABC analysis?

What is Pareto’s Principle?

Differentiate between cash flow projection and cash flow statement.

What is financial management? What is the main objective of financial management?

#### Chapter 5: Business Arithmetic Exercise Short answer (exceed 75 words) solutions [Page 208]

There are three key elements in the process of financial management. Explain them.

What are the key aspects of financial decision-making?

What is a budget? What are the essentials of a budget?

Explain Inventory Control and state its objectives.

#### Chapter 5: Business Arithmetic Exercise Long answer (exceed 250 words) solutions [Page 208]

What is a budgeting process?

There is a Budget to suit every business and its need. Elucidate.

Explain the two dominant forms of budgeting process.

. What is working capital? What is the need for a working capital?

#### Chapter 5: Business Arithmetic Exercise High Order Thinking Skills solutions [Page 208]

Calculate working capital of Raja & Co. has the following items in its Balance sheet: Stock — 50,000; Trade creditors – 32,000; Debtors – 75000; Cash -1,00000; Dividend payable – 50,000; Tax – 44,000; Short term loan – 61,000; Short term investments – 76,000. Calculate gross and net working capital.

Ramu is buying and selling ice-cream.Explain his working capital requirement.

## Chapter 5: Business Arithmetic

#### CBSE Class 12 ENTREPRENEURSHIP

#### Textbook solutions for Class 12

## CBSE solutions for Class 12 Entrepreneurship chapter 5 - Business Arithmetic

CBSE solutions for Class 12 Entrepreneurship chapter 5 (Business Arithmetic) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the CBSE Class 12 ENTREPRENEURSHIP textbook solutions in a manner that help students grasp basic concepts better and faster.

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Concepts covered in Class 12 Entrepreneurship chapter 5 Business Arithmetic are Budgeting and Managing the Finances, Working Capital, Inventory Control and Economic Order Quantity, Return on Investment and Equity, Concept of Unit Price, Break Even Analysis, Cash Flow Projection.

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