Short type Entrepreneur question answer
With the help of these NCERT Solutions, you can easily grasp basic concepts better and faster.
SHORT TYPE QUESTIONS
35) What is diversification
Ans: It is a process of adding more products or markets or services to the existing product line. It overcomes the limitation of business growth through expansion.
36) What is product mix
Ans: It refers to the complete range of products that is offered for sale by company. It is also called as product assortment
37) Write a short note on labour intensive technology
Ans: Provides wide scope for employment opportunities, ensure effective use of resources and capital. However labour intensive units tend to show lower productivity, low rate of capital involvement and fails to improve the work by hands, there is no use of machinery.
38) What is labour intensive technology
Ans: It provides wide scope for employment opportunities; ensure effective use of resources and capital. However labour intensive units tend to show lower productivity.
39) What is Vision and Mission
Ans: A vision statement describes the desired future position of the company.
A mission statement explain the company’s business its objective and its approaches to reach to those objectives
40) What is Zeroing the process
Ans: On the basis of analysis, the most suitable idea is finally selected to convert it into a enterprise. The process involve selection of project out of some projects
41) Difference between merger from acquisitions
Ans: Mergers: It means the fusion of two or more than two companies voluntarily to form a new company. Its main purpose is to reduce competition.
Acquisitions: When one entity purchases the business of another entity. The main purpose is instantaneous growth.
42) Give two rights of consumers
Ans:
Right to safety: it means that the consumer has a right to be protected against the marketing, goods and services
Right to be informed: a consumer has a right to get true and computer information about quality, quantity prices and date of manufacturing & expiring of product
43) What is fund flow statement? What its features
Ans: It is the technique by which an entrepreneur studies the change in the financial position of the enterprise. This statement is very useful in the growth of an enterprise.
Features:
·
It helps in
analysis of financial operations.
·
It acts as
future guide
·
It helps in
proper allocation of resources.
·
It helps in
the formation of proper dividend policy.
·
It helps in
the allocation of working capital
44) What are non-financial resources?
Ans: The non-financial resources refer to all those resources other than financial resources e.g skills, raw material, experience, natural resources etc.
45) What is marketing assessment
Ans: it is a process of systematic gathering, recording and analyzing of information related to market trends, customers, competitors and market. This done to create business plan
46) What is expansion?
Ans: It is one of the forms of internal growth of business. Expansion is a natural growth of enterprise taking can be done by expanding the size of market implementing the new machinery & techniques increasing the size of production.
47) What is cost of Capital?
Ans: It is the cost of company’s funds. For investors point of view investment is worthy only if the expected return of capital is higher than the cost of capital
48) What is the difference between Equity shares and preference shares
Ans:
|
Equity shares |
Preference shares |
|
·
Equity
shares are the ordinary shares of the company representing the part ownership of the shareholder in
the company.
· The
dividend is paid after the payment of all liabilities. · In
the event of winding up of the company, equity shares are repaid at the end. |
· Preference shares are the shares that carry preferential
rights on the matters of payment of dividend and repayment of capital.
· Priority in payment of dividend over equity shareholders. · In the event of winding up of the company, preference shares
are repaid before equity shares. |
49) Give any three characteristics of good business plan
Ans:
It should be clearly define the objectives and ways of achieving same
It should be simple and comprehensive
It should be logical and practical
It should always involve the participation of subordinates
50) Define EOQ
Ans: It refers to as economic order quantity which can be brought a minimum cost. It is the size of lot to be purchased which is economically viable
51) What is the difference between private and public company?
Ans:
|
Private company |
Public Company |
|
·
It
has minimum of 2 members and maximum 50 members ·
Max
paid up capital in a private company is 1 lakh ·
Transfer
of shares is not possible ·
It
cannot invite general public to subscribe its shares |
·
It
has minimum of 7 members and no maximum members ·
Minimum
paid up capital in a public company is 5 lakh ·
Transfer
of shares is possible ·
It
can invite general public to subscribe its shares |
52) What is the difference between fixed capital and working capital
Ans:
|
Fixed Capital |
Working Capital |
|
·
Fixed capital is the
investments done by the business for accruing long-term benefits. · Fixed capital is used to acquire non-current assets of the company ·
It can’t be converted into
cash or kind immediately. |
·
Working capital is the
daily requirement pumped into the business. · Working capital is used to acquire the current assets of the company ·
It can be converted into
cash or kind immediately. |
53) What is capitalization
Ans: It is the process of recording an expense or cost in a permanent account and systematically allocating over future periods.
54) What is standardisation?
Ans: It refers to determining of standards regarding size design, weight, colour, raw material to used etc. It also means products supplied in same standards shown in the samples
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