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CBSE solutions for Class 12 Entrepreneurship chapter 6 - Resource Mobilization

Class 12 ENTREPRENEURSHIP textbook

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CBSE Class 12 ENTREPRENEURSHIP

Class 12 ENTREPRENEURSHIP textbook - Shaalaa.com

Chapter 6: Resource Mobilization

Section – A : FinanceSection – B : Financial MarketsSection – C : Stock ExchangeSection - D : SEBI & OthersSection – E : Specialised Financial Institutions

Chapter 6: Resource Mobilization Exercise Section – A : Finance solutions [Page 245]

Section – A : Finance | Q 1.1 | Page 245

Answer each of these questions in about fifteen words:

What do you understand by finance?

Section – A : Finance | Q 1.2 | Page 245

Answer each of these questions in about fifteen words:

Give the significance of finance in an enterprise.

Section – A : Finance | Q 1.3 | Page 245

Answer each of these questions in about fifteen words:

Name the most important prerequisite to start an enterprise

Section – A : Finance | Q 1.4 | Page 245

Answer each of these questions in about fifteen words:

State the most important factors for the survival of any business enterprise.

Section – A : Finance | Q 1.5 | Page 245

Answer each of these questions in about fifteen words:

State how sources can broadly be classified into two major categories.

Section – A : Finance | Q 1.6 | Page 245

Answer each of these questions in about fifteen words:

What do you understand by internal sources of finance?

Section – A : Finance | Q 1.7 | Page 245

Answer each of these questions in about fifteen words:

How will you differentiate between financial market with other market? Give one difference.

Section – A : Finance | Q 1.8 | Page 245

Answer each of these questions in about fifteen words:

‘Production’, ‘Marketing’, and Financing’ – deemed as the most important factors for any business’s survival rates. Among these name the most critical element and why?

Section – A : Finance | Q 2.1 | Page 245

Answer each of these questions in about fifteen words:

Which sources provide the supply for long-term funds?

Section – A : Finance | Q 2.2 | Page 245

Answer each of these questions in about fifteen words:

Name the sources of demand for capital comes from.

Section – A : Finance | Q 2.3 | Page 245

Answer each of these questions in about fifteen words:

Entrepreneur can use the capital raised for a variety of purposes, what are they?

Section – A : Finance | Q 2.4 | Page 245

Answer each of these questions in about fifteen words:

How can an entrepreneur, raises funds by selling the issue mainly to the institutional investors?

Section – A : Finance | Q 2.5 | Page 245

Answer each of these questions in about fifteen words:

How stock options lead to enable employees to become shareholders and share the profits of the company?

Section – A : Finance | Q 3.1 | Page 245

Answer each of these questions in about fifteen words:

Explain some important sources of raising finance in business

Chapter 6: Resource Mobilization Exercise Section – B : Financial Markets solutions [Pages 245 - 246]

Section – B : Financial Markets | Q 1.01 | Page 245

Answer each of these questions in about fifteen words:
Define capital market.

Section – B : Financial Markets | Q 1.02 | Page 245

Answer each of these questions in about fifteen words:

Name the two players in the capital market.

Section – B : Financial Markets | Q 1.03 | Page 245

Answer each of these questions in about fifteen words:

Identify the reward IPO investors seek as an appreciation of their investment.

Section – B : Financial Markets | Q 1.04 | Page 245

Answer each of these questions in about fifteen words

 identify the method of raising additional finance from existing shareholders by offering securities to them on pro-rata basis.

Section – B : Financial Markets | Q 1.05 | Page 245

Answer each of these questions in about fifteen words:

What do you understand by pro-rata allotment of securities?

Section – B : Financial Markets | Q 1.06 | Page 245

Answer each of these questions in about fifteen words

What is Right Issue?

Section – B : Financial Markets | Q 1.07 | Page 245

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?

Section – B : Financial Markets | Q 1.08 | Page 245

Answer each of these questions in about fifteen words

Why right issue method of issuing securities is considered to be inexpensive?

Section – B : Financial Markets | Q 1.09 | Page 246

Answer each of these questions in about fifteen words

What do you understand by private placement?

Section – B : Financial Markets | Q 1.1 | Page 246

Answer each of these questions in about fifteen words:

What is meant by stock options or offering shares to the employees?

Section – B : Financial Markets | Q 1.11 | Page 246

Answer each of these questions in about fifteen words:

Name the method which enables employees to become shareholders and share the profits of the company.

Section – B : Financial Markets | Q 1.12 | Page 246

Answer each of these questions in about fifteen words:

What is a secondary market?

Section – B : Financial Markets | Q 1.13 | Page 246

Answer each of these questions in about fifteen words:

What is the need of secondary market?

Section – B : Financial Markets | Q 1.14 | Page 246

Answer each of these questions in about fifteen words:

In what forms company can raise capital through primary market?

Section – B : Financial Markets | Q 2.1 | Page 246

Answer each of these questions in about fifty words:

For what purpose is finance required right from the very beginning i.e. conceiving an idea?

Section – B : Financial Markets | Q 2.2 | Page 246

Answer each of these questions in about fifty words:

What is the need of finance?

Section – B : Financial Markets | Q 2.3 | Page 246

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.

Section – B : Financial Markets | Q 2.4 | Page 246

Answer each of these questions in about fifty words:

State some mushrooming sources of raising finance in the business.

Section – B : Financial Markets | Q 3.1 | Page 246

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

State the nature of money market. Who are the major participants in the money market?

Section – B : Financial Markets | Q 3.2 | Page 246

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

Explain how capital markets are the most important source of raising finance for an entrepreneur.

Section – B : Financial Markets | Q 3.3 | Page 246

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

What do you understand by capital market? How can the capital market in India be broadly classified into different categories?

Section – B : Financial Markets | Q 3.4 | Page 246

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

Write down the sectors of organized and unorganized market.

Section – B : Financial Markets | Q 3.5 | Page 246

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

What is meant by primary market? Briefly explain the concept of ‘Right Issue for existing companies’.

Section – B : Financial Markets | Q 4.1 | Page 246

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

“An entrepreneur can raise the required capital in the primary market.” Explain the various methods of raising the funds in the primary market by an entrepreneur.

Section – B : Financial Markets | Q 4.2 | Page 246

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.

Section – B : Financial Markets | Q 4.3 | Page 246

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

While there are benefits to going public, at the same time additional obligations and reporting requirements on the companies and its directors means disadvantages too. What are they? Explain.

Section – B : Financial Markets | Q 5 | Page 246

High Order Thinking Skills

Why primary market is also known as new issue market? Give one reason.

Chapter 6: Resource Mobilization Exercise Section – C : Stock Exchange solutions [Page 247]

Section – C : Stock Exchange | Q 1.1 | Page 247

Answer each of these questions in about fifteen words:

What are the responsibilities of governing body?

Section – C : Stock Exchange | Q 1.2 | Page 247

Answer each of these questions in about fifteen words:

Name the stock exchanges where most of the stock trading in India is done.

Section – C : Stock Exchange | Q 1.3 | Page 247

Answer each of these questions in about fifteen words:

What is a secondary capital market?

Section – C : Stock Exchange | Q 2 | Page 247

Answer each of these questions in about fifty words:

What is the alternate name of stock used by different people?

Section – C : Stock Exchange | Q 3.1 | Page 247

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

Explain the importance of Stock Exchange from the companies point of view.

Section – C : Stock Exchange | Q 3.2 | Page 247

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

Explain the importance of Stock Exchange from the viewpoint of investors.

Section – C : Stock Exchange | Q 3.3 | Page 247

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

Explain the importance of Stock Exchange from the viewpoint of society.

Section – C : Stock Exchange | Q 3.4 | Page 247

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

Rahil (Finance) and Anushk (HR) are doing MBA (IIM Indore). While reading the newspaper Anushk saw the heading Sensex goes up. But last week the heading was different that Sensex goes down now some confusion was going on her mind, immediately she asked her Friend Rahil the same? Now according to you how Rahil will clear the confusion of Anushk? Explain and give some value points.

Section – C : Stock Exchange | Q 4.1 | Page 247

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

Write down the features of stock exchanges.

Section – C : Stock Exchange | Q 4.2 | Page 247

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

Explain the functions of stock exchange.

Section – C : Stock Exchange | Q 5 | Page 247

High Order Thinking Skills

Stock exchange performs a number of functions in respect of marketability of different types of securities for investors and borrowing companies. Explain the important functions of stock exchanges.

Chapter 6: Resource Mobilization Exercise Section - D : SEBI & Others solutions [Pages 247 - 248]

Section - D : SEBI & Others | Q 1.1 | Page 247

Answer each of these questions in about fifteen words:

What do you mean by stock exchange?

Section - D : SEBI & Others | Q 1.2 | Page 247

Answer each of these questions in about fifteen words:

What is SEBI?

Section - D : SEBI & Others | Q 1.3 | Page 247

Answer each of these questions in about fifteen words:

State three functions of SEBI rolled into one body.

Section - D : SEBI & Others | Q 1.4 | Page 247

Answer each of these questions in about fifteen words:

Humorously, they were once given the acronym FFF for Angel Investors”. What does FFF stand for?

Section - D : SEBI & Others | Q 1.5 | Page 247

Answer each of these questions in about fifteen words:

What do you understand by angel investors?

Section - D : SEBI & Others | Q 2.1 | Page 247

Answer each of these questions in about fifty words:

What is SEBI and what is its role?

Section - D : SEBI & Others | Q 2.2 | Page 247

Answer each of these questions in about fifty words:

Who manages SEBI?

Section - D : SEBI & Others | Q 2.3 | Page 248

Answer each of these questions in about fifty words:

Explain briefly the three functions of SEBI rolled into one body.

Section - D : SEBI & Others | Q 2.4 | Page 248

Answer each of these questions in about fifty words:

What do you understand by venture capital?

Section - D : SEBI & Others | Q 2.5 | Page 248

Answer each of these questions in about fifty words:

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

Section - D : SEBI & Others | Q 2.6 | Page 248

Answer each of these questions in about fifty words:

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

Section - D : SEBI & Others | Q 3.1 | Page 248

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

Explain the powers SEBI has been vested with for discharging of its functions efficiently.

Section - D : SEBI & Others | Q 3.2 | Page 248

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

What are the features of venture capital finance?

Section - D : SEBI & Others | Q 3.3 | Page 248

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

When can an entrepreneur seek venture capital financing?

Section - D : SEBI & Others | Q 4 | Page 248

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

Explain the characteristics of angle investors.

Section - D : SEBI & Others | Q 5 | Page 248

High Order Thinking Skills

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

Chapter 6: Resource Mobilization Exercise Section – E : Specialised Financial Institutions solutions [Pages 248 - 249]

Section – E : Specialised Financial Institutions | Q 1.1 | Page 248

Answer each of these questions in about fifteen words:

What is the role of Specialized Financial Institutions in India?

Section – E : Specialised Financial Institutions | Q 1.2 | Page 248

Answer each of these questions in about fifteen words:

Enumerate the types of Specialised Financial Institutions from where entrepreneur can access capital according to their need and requirements.

Section – E : Specialised Financial Institutions | Q 1.3 | Page 248

Answer each of these questions in about fifteen words:

When was SIDBI established?

Section – E : Specialised Financial Institutions | Q 2.1 | Page 248

Answer each of these questions in about fifty words:

Explain the need and importance of Specialized Financial Institutions in India.

Section – E : Specialised Financial Institutions | Q 2.2 | Page 248

Answer each of these questions in about fifty words:

Explain the objectives and functions of SIDC.

Section – E : Specialised Financial Institutions | Q 2.2 | Page 248

 

Answer each of these questions in about fifty words:

Write the full form of and when it was established.
(a)SIDC
(b) TFCI
(c) SFC’s
(d) NABARD
(e) IFCI
(f) IDBI
(g) ICICI

Section – E : Specialised Financial Institutions | Q 3.1 | Page 248

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

 Apoorva wants to start a new business near to her locality, for which she requires capital. State different types of national level and state level financial institutions from where Apoorva can access capital according to her needs and requirements.

Section – E : Specialised Financial Institutions | Q 3.2 | Page 249

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

Write down the objectives of IDBI.

Section – E : Specialised Financial Institutions | Q 3.3 | Page 249

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

Write an explanatory note on the financing schemes of state level financial institutions and their importance in promotion of an entrepreneur in India.

Section – E : Specialised Financial Institutions | Q 3.4 | Page 249

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

Write a short note on IIBI.

Section – E : Specialised Financial Institutions | Q 3.5 | Page 249

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

Describe the form of assistance provided by SIDBI to the industrial concern.

Section – E : Specialised Financial Institutions | Q 4.1 | Page 249

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

Explain the main objectives and functions of ICICI.

Section – E : Specialised Financial Institutions | Q 4.2 | Page 249

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

Explain in detail objectives and three important Primary functions ofNABARD.

Section – E : Specialised Financial Institutions | Q 5.1 | Page 249

High Order Thinking Skills

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

Section – E : Specialised Financial Institutions | Q 5.2 | Page 249

High Order Thinking Skills

Hari is an entrepreneur who wants to start an amusement park in Indore. He knows that she needs a huge amount of initial capital. According to you, which of the financial institution will be more suitable to him? Suggest and Explain why?

Section – E : Specialised Financial Institutions | Q 5.3 | Page 249

High Order Thinking Skills

Assuming that you wish to start a small scale industry for manufacturing and selling detergent powder, discuss how would you seek support of financial institutions.

Section – E : Specialised Financial Institutions | Q 5.4 | Page 249

High Order Thinking Skills

Discuss the advantages and disadvantages of financial institutions for an entrepreneur.

Section – E : Specialised Financial Institutions | Q 5.5 | Page 249

High Order Thinking Skills

Distinguish between ICICI and SIDBI.

Section – E : Specialised Financial Institutions | Q 5.6 | Page 249

High Order Thinking Skills

How NABARD is different from TFCI?

Section – E : Specialised Financial Institutions | Q 5.7 | Page 249

High Order Thinking Skills

Company A goes for public issue of 10,000 shares @ Rs 10 each. Application were received for only 5,000 shares. Can the company proceed with the process of issuing shares?

Section – E : Specialised Financial Institutions | Q 6.1 | Page 249

Value Based Question

Harish is working as the chief accountant in ABC infrastructure Ltd. He came to It also provides advisory and merchant banking services in this field.know that the company is planning to announce an interim dividend. He purchased 2000 shares of the Co. at the market price of ? 215 with the expectation of an appreciation in the market price. When the price increased to ^ 537 he sold his holdings & made a handsome profit. Name the related concept which social values have been affected here?

Section – E : Specialised Financial Institutions | Q 6.2 | Page 249

Value Based Question

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

Section – E : Specialised Financial Institutions | Q 6.3 | Page 249

Value Based Question

Mr. B the financial Manager of ABC Company purchases 100 shares of the Company just before the rights issue was announced. Is the behaviour of the manager ethical? What would you do as a legal advisor of the company?

Chapter 6: Resource Mobilization

Section – A : FinanceSection – B : Financial MarketsSection – C : Stock ExchangeSection - D : SEBI & OthersSection – E : Specialised Financial Institutions

CBSE Class 12 ENTREPRENEURSHIP

Class 12 ENTREPRENEURSHIP textbook - Shaalaa.com

Textbook solutions for Class 12


























CBSE solutions for Class 12 Entrepreneurship chapter 6 - Resource Mobilization

CBSE solutions for Class 12 Entrepreneurship chapter 6 (Resource Mobilization) 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.

Further, we at Shaalaa.com are providing such solutions so that students can prepare for written exams. CBSE textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in Class 12 Entrepreneurship chapter 6 Resource Mobilization are Capital Markets, Stock Exchange, Securities and Exchange Board of India (SEBI), Angel Investors, Venture Capital, Specialised Financial Institutions, Types of Specialised Financial Institutions.

Using CBSE Class 12 solutions Resource Mobilization exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in CBSE Solutions are important questions that can be asked in the final exam. Maximum students of CBSE Class 12 prefer CBSE Textbook Solutions to score more in exam.

Get the free view of chapter 6 Resource Mobilization Class 12 extra questions for Entrepreneurship and can use Shaalaa.com to keep it handy for your exam preparation

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