(Download) CBSE Class-12 2016-17 Sample Paper (Entrepreneurship)
Time allowed: 3 hours
Maximum Marks: 70
1. Name the two things that are taken care in a reorder
point? 5 (U) 1
Ans. Lead time and Demand during lead time.
2. Deepak Ltd., has been manufacturing cycles since 2010.
Their market share in this field is 35%. They decided to introduce new cycles
with advanced gear systems in 2015. For the same they estimated their financial
requirements to be 20 crore.
They decided to raise the same through a limited number of
sophisticated investors. Identify this kind of issue?
Ans. Private placement
3. Rishabh lives in Vijay Nagar, a residential colony near
Delhi University (DU). Being close to DU this area is a hub for students who
come from outside Delhi to study here as they find good accommodation with
Tiffin service readily available. Rishabh has a vacant residential building
there. He found it to be an attractive economic idea to start a Paying Guest
House. He knows that he has a good market because of the location of his
building. State the other requirement he has to ensure before opting for this
Ans. The rate of return on the investment has to be
attractive to be accepted by him.
4. What is meant by ‘private sector enterprise’? 2/ (R) 1
Ans. Private sector enterprises are those which are owned,
controlled, and managed by private individuals, with the main objective of
5. State the role of a sales person in personal selling.
3/ (R) 1
Ans. Companies appoint salesperson to contact prospective
buyers and create awareness about the company’s product.
6. What is meant by seed capital financing? What the
entrepreneur has to do to convince the investor to get money?
Ans. It refers to the capital required by an entrepreneur for
conducting research at pre commercialization stage. The entrepreneur has to
convince that his idea was worthwhile to the investor.
7. Ragini, a career oriented mother, hardly got time to
cook for the family. She decided to hire a cook but was not able to find one who
could cook according to the taste of the family. Her sister Abha sensed that
this problem is not only faced by her sister but also by many working women. She
launched a website namely ‘Dial for food’ where housewives who had culinary
ability and were interested to cook could drop in their contact details and
households where specific cuisine was required could leave in their requirements
so that through the website home cooked food could be delivered. The website
mainly helped in identifying the requirement and fulfilled it through providing
delivery service. Identify any two uses of problem identification to Abha.
Ans. 1. Bring out new products in the market
2. Increase employment generation
3. Understand the problems and needs of the market. (Any two)
8. Explain the first two elements in the innovation
process? 1/U 2
Ans. 1. Analytical planning: carefully identifying the
product or service features, design as well as the resources that will be
2. Resource organization: obtaining the required resources,
materials, technology, human or capital resources.
9. Sanjiv was developing a business plan for his
organization. While working on the financial plan he realised that his financial
requirements will be for fixed assets and their installations, preliminary
expenses, working capital, expenses on research and development and investment
in short-term assets viz. raw material, level of cash, etc. To decide on the
sources of funds for the venture, he tried to ensure the selection of the best
overall mix of financing for the enterprise.
a. Identify the elements of financial plan discussed here.
b. Why is it important for an entrepreneur to ensure the selection of the best
overall mix of financing for the enterprise?
Ans. a. a) Proforma investment decisions
b) Proforma financing decisions
b. The entrepreneur's job is to ensure the selection of the best overall mix of
financing for the enterprise so that:
a) the cost of capital and the financial risk stands minimized,
b) return on investment and profitability stands maximized.
10. Rohan a budding musician created a lot of musical
notes for his upcoming video. He was extremely thrilled to listen to his
compositions. He presented his compositions to his friend Victor. The release of
musical video of Rohan was getting delayed for a few months due to shortage of
cash. Meanwhile Victor used most of the musical compositions of Rohan in his
Rohan was extremely upset to know that his friend had cheated
him and used all his work. What could have Rohan done to save his work?
Identify and explain it.
Ans. Rohan should have copyrighted his work. It gives the
creator of original work exclusive rights to it, usually for a limited time.
11. Bhushan and Vinay were pursuing Electrical Engineering
from a prestigious 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 10 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
The prototype was made but to manufacture and distribute the
same, they required around 5 crores. Both Bhushan and Vinay approached some
affluent individuals who were ready to invest in their business in exchange for
a convertible debt. Identify the type of investors and state any two features of
Ans. Angel Investor
Features (Any two)
1. Most angel investors are current or retired executives, business owners or
high net worth individuals who have the knowledge, expertise, and funds that
help start-ups match up to industry standards.
2. As angel investors bear extremely high risk and are usually subject to
dilution from future investment rounds. They expect a very high return on
3. Apart from investing funds, most angels provide proactive advice,guidance,
industry connections and mentoring start-ups in its early days.
4. Their objective is to create great companies by providing value creation, and
simultaneously helping investors realize a high returnon investments.
5. They have a sharp inclination to keep abreast of current developments in a
particular business arena, mentoring another generation of entrepreneurs by
making use of their experience.