INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR, Date FN/AN, Time: 2Hrs., Full Marks: 100, Deptt, Rajendra Mishra ‘School of Engineering Entrepreneurship No. of Students: 76, Mid-Autumn Semester Examination Sub. No. EP60020 ‘Sub. Name: Foundations of Entrepreneurship Yr. B.Tech. (H)/ B.Arch. (H)/ M.Sc./ M.Tech (Dual), Instruction Section A: Answer all questions (each question carry 5 marks) 1. Explain how prospective is your business model based on the key characteristics influencing success of Businesses? 2. How entrepreneurship is different from small business 3. Where does the government get the. money from? 4. What economic objective does a country aim for? Explain the role of entrepreneurship in meeting that aim. 5. What lessons do you get from the story of Dhirubhai Ambani for entrepreneurs to be successful? 6. State three powerful myths about entrepreneurship and how the facts around modern day entrepreneurship counter those myths. 7. What have you learned in the first boot camp? What particular item has inspired you the. most? 8 Write five sentences on the competitive advantages of your business model. Comment ‘on scalability of your proposed business. 9. Define corporate entrepreneurship and explain how it promotes innovation and helps in creating competitive advantage and sustainable growth of a company. 10. What are the key elements of a business plan? Write one sentence on each to explain them. Section B: Answer all the questions 11, Explain the two common methods of depreciation. A machine has been bought for = 25,000/-. Estimate its yearly depreciation for the first five years of its use using both the two methods. Assume the useful life of the machine to be 10'years. Choose any rate of depreciation wherever applicable. Salvage or residual value after the useful life is 5000/. What is the book value of the asset after five years in each method? 10 1[Page12. Presented below is the balance sheet of the company FEStartUp as on 31.03.2014 30 Equity capital 500 Loan outstanding with bank 700 ‘Amount due to Sundry Creditors 160 Machinery 500) Furniture 50. Stock of goods 600 Cash in hand 5 ‘Amount receivable from Sundry Debtors 205, Followings are the transactions of the company (FEStartUp) during the year 2014- 2015. Prepare the Journal, General Ledgers, trial balance, and Profit & Loss Account for the year 2014-2015 using this data. Make adjustment entries for depreciation and income tax. The closing stock as at the end of the year is 500. Prepare the balance sheet of the company as at the close of business of 2014-15. Use opening balance of relevant items from the balance sheet above. Apply the reducing balance method of depreciation in the calculation. Assume the income tax rate @ 30% irrespective of the quantum of profit. (Dates are omitted for transactions for brevity.) Purchase machinery in cash 50 Purchase goods on credit 300 Purchase goods for cash f 100 Receive cash from debtors 200 Sold goods on credit 600) Paid cash for rent 20 Sold goods for cash 200 Paid loan instalment to bank 50. Paid salary by cash 25 Paid electricity charge in cash 10 Paid cash to Sundry Creditors 100 Receive cash from proprietors towards new equity 50. Paidfor repair of machinery 5 Sold goods for cash 100 Paid interest on bank loan in cash 105 | Paid insurance in cash 15 Paid freight 40 Paid traveling expenses 5 2|Page13. Driven by poverty, Rani, a resident of Kharagpur, started working as a domestic help while studying 2 course on entrepreneurship at graduation level on distantlearning mode. In order to satisfy her diverse employers she quickly learnt the art of cooking south-Indian, north-Indian and Bengali cuisine. You visited one such house and noticed that the food tastes extraordinarily good. Knowing about her penchant to learn and Pursue education under extreme pecuniary situation while working you suggest her to start her own eatery and help her to get a small space by the side of Gymkhana. She starts the eatery and soon her business starts flourishing. She renovates her premises to add bit of glamour and also starts home delivery. Eventually, she completes graduation and is now planning to scale up the operation by opening eateries in other such centres as IIT. Explain what entrepreneurial qualities you notice in Rani. What have you to explain about scalability, repeatability, entry barrier, pricing power and any other aspect(s) related to competitive advantage of her business? 10 3[ Page