PRACTICE PAPER

..,I
Ti me Al low ed : 3 Ho
ur s
General Instructions: Sa M u. Muks: '70
me as CBSE Sample Qu
estion Paper 2023-24.

1. Exploring op po rtu
SECT ION-A
ni tie s in th e en vi ro nm
steps in co rre ct or de r: en t is a process involv
ing various steps. Arran
ge th e
(i) Setting up a pr oj ec
t an d nu rtu rin g it to su [11
(ii) Evaluating th e ide ccess.
as received from differ
(iii) Identifying a pr od ent sources to find a cre
uc t or service th ro ug h ative solution
(iv) Op po rtu ni ty spott innovation
ing by analysing th e ne
(a) (i), (ii), (iii), (iv) ed s an d problems th at
exist in th e environmenL
(b) (iii), (i), (ii), (iv) (c) (u), (iii), (iv), (i)
2. Which pricing strate (d) (iv), (ii), (iii), (i)
gy sets th e initial pr ice
att ra ct new customers? of a pr od uc t lower th an
th e eventual market pr
ice to
(a) Cost-plus pricing
(b) Penetration prici [11
(c) Cr ea mi ng or skim
ming ng
3. Ramandeep is a tec (d) Variable pricing
hnical entrepreneur wh
Du e to lo t of competi o started developing int
tion in this field he is eractive websites of busin
un de rst an d his reven experiencing a decline esses.
ue position as compare in th e demand. He wi
combinations would he d to his investment. W shes to
lp hi m in assessing th e hich one of th e follow
profitability of his busin ing
(i) Economic Or de r ess? [CBSE QP 2022-23
Quantity 1 [11
(iii) Re tu rn on Equity (ii) Return on Investm
ent
I (a) (i) an d (iii)
(c) (ii) an d (iii)
(iv) Break-Even analy
(b) (iii) an d (iv)
sis

4. Kr af t Inc. almost too (d) (i) an d (iv)

k. over Cadbury comp
any by force. Identify th
(a) Friendly acquisitio e type of acquisition: [11
n
(b) Reverse acquisition
(c) Back flip acquisitio
n
• f th £ 11 · (d) Hostll:e acquisition
5. W hi ch ~ .. e o ow asons will reduce th e av
mg re erage production costs
an acqu1S1Uon? following a merger or
[11
(a) Economies of scale (b) Conglomerate me
rger
(c) Vertical me rg er (d) Horizontal merger
I
\
 ..
that is

6. ABC ltd. is a company into manufacturing ofTY, mobile phones and other 1 • .
value. Which of the following is the best suited channel of distribution for~ectromc Items of high
. e company?
(a) Direct channel (b) Indirect channel Cl]
(c) Short channel (d) None of these
7. What will be the Net Working Capital of Sukhom Ltd. from the given data? [CB
SE QP 2023] Cl]
Cash ,2,00,000
Amount Receivables ,1,50,000
Account Payables
'65,000
Inventory ,3,00,000
Shon term borrowings ,1.00,000
Outstanding Salaries '50,000
(a) f6,50,000 (b) f2,15,000
(c) f 8,65,000 (d) f 4,35,000
8. Bharat Sethi founder of 'Rage Coffee' found that the coffee market had h
many unserved gaps. So he started to obtain the required resources foe udge p~ten~ and
c
1ormu 1allons,
• manufactunng
• teeh mques
• • useBhon mgred1ents
and direct to consumer distribution . . . •
stage of innovative process. • arat is m which
(a) Analytical planning (b) Resource organization [l]
(c) Implementation (d) Commercial application
9. Ramesh wants to invest a total off 10,00,000 on his footwear store. His net profit befo ·
and tax will be f 5,00,000. What will be his Return on Investment? • re mtereSt
[l]
(a) 20% (b) 30% (c) 40% (d) 50%
10. Assertion (A): Sensitivity to environment factors is crucial for an entrepreneur. [l]
Reason (R}: If a company is able to adapt to its environment, it would succeed in the short run.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
I I. Assertion (A) : Obtaining venture capital is substantially different from raising debt or a loan
from a lender. [l]
Reason (R) : Lender have a legal right to interest on a loan and repayment of the capital,
irrespective of the success or failure of a business.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
12. Assertion (A) : Internal expansion results from the rapid • mcrease
• • the act1V1t1es
m • • • Of the
[l]
concern.
Reason (R) : The concern may expand its • present prod uct1on
• capacity
• bYaddi•ng more machines.
.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
.Assertion (A).

f
300 Entrepreneurship-XII
 (R) ar e tn1e and R as on (R) is no t th e co rr
th j\sseru. on (A ) an d Reason e ec t ex pl an at io n of
(b) Bosertion (A
J\S ).
uo n (A) is• tr ue bu t Re as on (R) is false.
(c) j\sser . A) is false bu t R (R ) is tr ue .
(d) J\Sseruon ( eason r of th e ro du ct w
h re
. .s the stage w e th er e is first, encoundte ith th
13• ·flus i ropt is to in th e m ar ke t an m :m ar ke t sh ar e e re st of th e m ar ~e t. actually
the atte squeeze ge t so fr om th e co m pe tit
(b
or s. ll l
) se ed capital ) Pr e- st ar t up
(a d- ro un d financi. ng (d) B ot h (b) an d
(c) Secon (c)
. . do es n' t in
14 Resource or·ouanizauon cl ud e:
• ll l
(a) Applyi. ng resources (b) H um an re so
ur ce s
.
(c) Maten•al re sources (d ) C ap ita l re so ur ce s
l of in fo rm at io n re la te d to
Shr uti gath ers al typ~s he •
15. b r b~ sine~s al l
which lea ds to bo os t in he r us .m e55• Id en tif y .th e way m w hi chre gu ~ ly fr om pothssible sodurcellls
sh e 1s ab le to sp ot
(a ) Talk tr e nds (b) W at ch tr en ds e tr en •
, ) T hi nk tr e nds
\c
(d ) R ea d tr en ds
th is r w ho ha s de ve lo pe d a
16. Sam3:n :i e man en tr re ne u
aterialsep
• ue •
un iq li ne o f h and m ad •
su s~ na . Sh e also pl an s to e ll •
d
decides to ?a n ov he r en ti re ou tp ut to be fu lly re lie ve d of thTheprohb',,e f d" "b1ew• e er ydus in g
er th e selling ag en ts m o ft sd ~ _ubtl~n th
I Samantha is:
(a ) Zero level
. e c an ne1o ts tr an d bus
l ut io n us e y
ll ]

j
(b) O ne le ve l
(c) Two level
17 . A n ex am pl e of fo (d ) T hr ee le ve l
rm utility is:
, (a ) Goods tr an
sp or te d fr om pl ac
e of pr od uc ti on to ll l
(b) Goods st or
ed w he n no t re qu pl ac e of co ns um pt
ir ed io n
(c) Raw m at er ia
ls ch an ge d in to fi
(d) (b) an d (c)
ni sh ed go od s
18 . A pr iv at e co m pa ny
ha s a m in im um
past employees. of 2 an d a m ax im
um of _ _ _ _ ex
(a ) 7 cl ud in g its pr es en
t an d
(c) 25 (b) 50 [l ]
(d) 30

19
• Give re as on s fo SECTION-B
r th e following si tu
(a) O pe ra ti ng cy at io ns in bu si ne ss
cle is sh or te r in tr :
(b) Sh el fl if e ha ad in g bu si ne ss th an in m an [2]
s. an im pa ct on th uf ac tu ri ng busine
20 e in ve nt or y. ss.
• . Two fr ie nd s M
""\ it u an d R it u w er
a~ d bo u~ ds ~or th e pa rt ne rs in a ga
e la st two ye ar s. rm en t business. T
sh gh t sl um p m th U nf or tu na te ly , du he ir business grew
e fi rs t qu ar te r of e to a pa nd em ic in in leaps
P~ rt ne rs an d th ey th e bu si ne ss . D ue to th e country, th er e
w an te d to m in im this, th er e was a di was a
di sp ut e amicably iz e sp ut e be tw ee n th e
so th at th e pr of its th ei r pe rs on al risk by se pa ra tin g. T two
(i) Id en tif y th e ne co ul d be sh ar ed . he y tr ie d to settle
th ei r
w fo rm of bu si ne
(ii) St at e tw o de m ss ad op te d by M itu [2]
er it s of pa rt ne rs hi an d Ritu af te r th e
p fo rm of business pa nd em ic.
.
A ng el in ve st or an OR
d ve nt ur e ca pi ta l
E xp la in th e co nc ar e tw o sources of raising
ep t of bo th th e so finance fo r an en tr
ur ce s st at in g on e ep re ne ur .
distinguishing feat
ure of each.·
 21. How many forms of synergy arc there? Discuss. (!)
22. Write any two forms of acquisitio~s. . . . (!)
23. An entrepreneur can raise the capital m the pnmary market by many methods. Private place
one such method. Discuss the method with special emphasis on the examples of institu~::
investors. [2]
OR
When an entrepreneur decides to go public and become a public company, he/she tends t b .
advantageous positions because of reaping many benefits. What are those benefits? Elaboorate. e tn
24. A relatively handful of things will generate the bulk of the results or in any group will have .. .
few and trivial many". Analyse the statement. Vt~

SECTION-C
25. Pratyu~h has started a herb:-J hair oil manufactui:1ng. unit. He has decid~d about the lo
• • packagmg format and labellmg ?f the p~uct.. Hts friend Ayush asked him whether he f'0

taken care of the Jegally recognised exclusive rights of other manufacturers in the ind as
before taking the above stated decisions. Identify and give the meaning of the concept ~try
which Ayush asked Pratyush. a [:;
26. State any three items of physical infrastructure that should be mentioned in the descriptionof a
. J (3)
b usmess p an.
OR
What is advertising? State with reason the mode of advertising you would adopt to sell ''I:'
. consumer Goods m
moving . urban centres. &-ast

27. NU-FONE launched a smart mobile phone in the market recently after lot of research and
development. This mobile phone had many new features which distinguished it from th
existing mobile phones in the market. To recover the investment a high price was determine:
for the mobile phone even then the demand was very high. The quality conscious customers
were ready to pay the high price as they understood the product's value and its features. (3)
(i) Identify and explain the pricing-strategy used by NU-FONE
(ii) Explain one advantage and one disadvantage of this pricing strategy.
28. Break even analysis has a major impact on the business decision making. Comment. [3)
29. Describe the stages in 'early stage' business development funding. [3]

SECTION-D
30. Bhushan and Vinay were pursuing Electrical Engineering from a presttgious engineering
college. During their third year they developed a solar LED bulb which can be used indoors.
The bulb had a small panel which had to be charged at a stretch for IO hours in the sun and it
would last for 200 hours of usage. The idea was risky as there was a possibility that the market
might not accept such a product, but if they do so, then, there would be a revolution in the
power industry as it would lead to saving of power in every household. The prototype was made
but to manufacture and distribute the same, they required around f 5 crores. Both Bhushan
and Vinay approached some affluent individuals who were ready to invest in their business in
exchange for a convertible debt. [5]
Identify and explain the type of investors and state the features of the same.
31. "Innovation is the process of entrepreneurshi p". With reference to this statement, explain the
meaning of innovation and the elements of this process. [5]
OR
Explain any five steps involved in the process of investigation of a feasible product.

t'El1bepm,eurshfp-Xlf
 ds gru"' ... -
-t~rink bran h l' c beverages market. ..
9'>diny 2019.an non-alco o ba ds including Bovonto, Jayanti Cola , Sotiyo n,nncr anu
. al rea __ _.
r

itegiofl
,2. share to 24 dy-to-drink beverages rahn the twice the rate or national playe1'1 like Coca-Cob.
Region.. al reaut together grew rnore. tdustrial
an • • d ata firom raearch Iiarm Ni-'
officials sat.d aung n•.
........111
...
J{ashrn•ra, p
d pepsiCO an . calendar 2019, two an
h dreds of local brands put together, •ancreued thew , value lhare
an ding to the data, all:eh
~'%:
~rc ready-t~drink retail beverages market to 249E, wt year, which
,20, ooo plu~ nonf-. ':u,°try leader coca-Cola's 49.9% share and well ahead of Pepsi Cdt
1n half the saze o an
is almost
19.6%, . . h local brands and minimal overheads on marketing arc helping regional
Lower pracang for t ~et share in spite of the two cola majors' hyper locaJiu.tion dmc said a Mn
d to boOSl mar • th -r
bran 5 d' g bottling cornpany m e country.
1
oflicial at a ea the an above escerpt and answer the followmg • quauom.•
d
eareful
. What 1y were
rea the two most important factors, responsible for boosting the market ahare orlhe

I
...
(i) regional non-alcoholic beverages?
(ii) Identify the source of id~a field mentioned in the above passage and discuu five such
opportunities in the same idea field.

l 33
34
_ What is problem identification? How does problem identification help the entrepreneur?
. From the following information of Balance sheet given below, calculate:
(5)
(5)
(i) Total Current Assets (ii) Total Current Liabilities
(iii) Gross Working Capital (iv) Net Working Capital or Fund
Balance sheet as on 31st March, 2013.

Equity capital 4,00,000 Fixed Assets 2.50.000

iJ Preference capital
General Reserve
Profit and Loss Account
1,00,000
90,000
12,000
Current Assets:
Debton
-
2.so.000
Stock 3.,50.000
Current Liabilities:
Cash 25.000
Sundry Creditors 1,10,000 Prepaid Expenses 5.000
Bills Payable
42,000
Bank Overdraft
58,000
Outstanding Expenses
68,000
-4 8,80,000 I
I

000