MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 1 OF 14

Name:
Class: XII
Subject: Entrepreneurship
Date: Roll No.
Invigilator’s Sign.
Session: 2021-22 SET-A
Time allowed: 90 Minutes SUBJECT CODE: 066

Time: 90 minutes Maximum Marks: 35

General Instructions:
1. The Question Paper contains three sections.
2. Section A has 24 questions. Attempt any 20.
3. Section B has 24 questions. Attempt any 20.
4. Section C has 12 questions. Attempt any 10.
5. All questions carry equal marks.
6. There is NO negative marking.

SECTION A

1 “Many a times, a solution to a problem leads to idea generation”. Identify the source of ability
to perceive and preserve the basic ideas.

a. Problem
b. Change
c. Invention
d. Competition

2 Limited capital, limited managerial ability and limited continuity gave the rise to formation
of ___________ form of organisation.

a. sole proprietorship
b. partnership
c. company
d. joint hindu undivided

3 Select the appropriate economic factor which will affect the business decisions related to
loans or funds to be borrowed from the market.

a. Inflation
b. Business cycle
c. Disposable income
d. Interest rates
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 2 OF 14

4 “Any one partner can act on behalf of the firm and his acts bind the firm.”
Identify the characteristic which signifies the statement.

a. Mutual agency
b. Utmost good faith
c. Implied authority
d. Continuity

5 “TravelKhana currently operates in 30 cities and its rapidly expanding across the railway
network”.
Pushpinder Singh, CEO and chief of TravelKhana, followed various stages in developing
his project, Identify the stage quoted above.

a. Spotting an opportunity by analysing the needs and problems of the society

b. Identifying a product or service through innovation
c. Setting up a project and nurturing it to success.
d. Evaluating the ideas received from different sources to find a creative solutions

6 Partnership firms in India are governed by:

a. The Company Act 1956

b. Indian Partnership Act1922
c. Indian Partnership Act, 1932
d. The Government of India

7 Family Diners, Sandwich and salad parlours, Ice cream parlours, specialty tourism,
personal grooming salons are an example of ______________ ideas.

a. trading related
b. market or demand
c. service sector
d. existing products

8 Kundan Lal Bhalla is the Karta of HUF. He has

a. unlimited liability
b. limited liability
c. implied authority
d. Both (a) and (c)

9 “Participating in events organised by specific industry’s trade association, whether it is

online or offline. Also taking advantage of social networking sites and forums.”
Identify the way of spotting the trend in above statement.
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 3 OF 14

a. Read Trend
b. Talk Trend
c. Watch Trend
d. Think Trend

10 Elements of the innovation process are:

Analytical Planning Resource organisation ___________ Commercial
Application.
Select the missing element from the options given below.

a. product identification
b. opportunity assessment
c. innovate and create
d. implementation

11 The _______ section of financial plan gives the projected net profit of the business based
revenues and projected expenses.

a. Proforma investment decision

b. Proforma financing decision
c. Proforma income statement
d. Proforma cash flow

12 “Organisations have to be constantly aware of the changes taking place in the environment
and adapt to those changes to survive and be successful”. Recall the process which needs to
be followed in favour of above statement.

a. Exploring Opportunities
b. Environment Scanning
c. Formulation of strategies
d. Environment Analysis

13 “An organisation’s performance and resulting productivity are directly proportional to the
quantity and quality of its manpower”. So _______ are of paramount importance for the
success or organisation.

a. quality checks
b. human resources
c. follow ups
d. business planning
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 4 OF 14

14 Political, economic, social, technological, ecological and legal factors are the _________
factors affecting the external environment of the business.

a. internal
b. macro
c. micro
d. external

15 Dividing the market in smaller groups on the basis of consumer characteristics or buying
situations is called _________.

a. market segmentation
b. consumer preferences
c. grouping
d. target market

16 Idea generation is the process of __________ , _________ and ________ ideas.

a. sorting, researching and creating

b. analysing, exploring and discovering
c. marketing, developing and promoting
d. creating, developing and communicating

17 “Ray Kroc, the president of Mc Donald’s, invented a new way of _________ hamburgers.

a. manufacturing
b. marketing
c. distributing
d. advertising

18 Creative efforts are an important ___________. It is not only used to spot and harness
opportunities. It can also be applied to develop new products and services.

a. skill
b. competency
c. idea field
d. service

19 Mohan is the head of a joint Hindu family business, what will he be known as legally?

a. Partner
b. Owner
c. Karta
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 5 OF 14

d. both (b) and (c)

20 Statement 1. The liability of the shareholders of a company is normally unlimited.

Statement 2. Partnership is the outcome of a contract.

a. Both are true.

b. Statement 1 is true and Statement 2 is false.
c. Statement 1 is false and Statement 2 is true.
d. Both are False.

21 The board of directors of a joint stock company is elected by:

a. General Public
b. Government bodies
c. Shareholders
d. Employees

22 Identify the form of Business Organization being talked about in the following sentence:
“Two heads being better than one.”

a. Sole proprietorship
b. Partnership
c. Co-operative
d. Company

23 Private company can commence its business immediately after receiving _______. It does
not need to obtain a _______.

a. certificate of validation, license

b. certificate of incorporation , certificate to commence business
c. certificate of incorporation, license
d. certificate to commence business, certificate of incorporation

24 Statement 1: The first Companies Act was passed in India in the year 1948.
Statement 2: A company cannot be held liable for the actions of its members and members
cannot be held liable for the actions of the other members.

a. Both statements are true

b. Statement 1 is false ,Statement 2 is true
c. Statement 1 is true, Statement 2 is false
d. Both are false
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 6 OF 14

SECTION B

25 “ Solitaire, handmade, lead -crystal glassware making has now matured with 1100 tpa
production and annual sales at Rs. 18 crore. There are about 150 skilled workers who hand-
carve crystal at the Madhupur plant.
In 2007, Jhunjhunwala started a second plant in Sitarganj near Haldwani in Uttarakhand.”
Identify the elements of business opportunity quoted in the above lines.

a. Assured market scope

b. An attractive and acceptable rate of return on investment.
c. Potential for future growth.
d. Innovation and creativity

A factory is engaged in manufacturing washing machines. The following information is

available to you:
Sales = Rs. 4,00,000
Direct Labour Cost (2000 units)= Rs. 40,000
Direct Material Cost (2000 units)= Rs. 1,00,000
Direct expenses (2,000 units)= Rs. 20,000
Fixed cost = Rs. 1,20,000

Choose the correct answers for Q.26 – Q.28 based on the above data.

26 Variable cost per unit :

a. Rs. 70
b. Rs. 80
c. Rs. 30
d. Rs 50

27 Total Cost

a. Rs. 1,80,000
b. Rs. 2,00,000
c. Rs. 2,80,000
d. Rs. 1,60,000

28 Quantity to be sold at breakeven point

a.3000 units
b.2000 units
c.2500 units
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 7 OF 14

d.1000 units

29 Identify the various sources of Idea fields.

i. Opening of a water plant a. Service sector ideas
ii. E-commerce b. Creative efforts
c. Natural resources
d. Trading related ideas
a. i- d, ii-a
b. i- c, ii- d
c. i-a , ii-c
d. i-d , ii-b

30 Ayush Generic Medicines a chemist shop sells generic medicines. On 15.2.2020 medicines
as per the details given below were sold:

No. of Customers Per customer billed amount (Rs.)

15 370
20 430
45 500
25 1,000
95 1,200

Calculate and select the correct average amount of medicines sold per customer.

a. Rs 878.25
b. Rs. 17.5
c. Rs.800
d. Rs 1750

31 One of the key to business success is to anticipate what the market will want or need. Since
it is not possible for an entrepreneur to see into the future, there is one best way. The best
way will help the entrepreneur to understand the market and produce goods or services
accordingly.
Identify the concept in the above lines.

a. Environment Scanning
b. Product Identification
c. Trend Spotting
d. Customer Feedback

32 Raw material, Commission on sales, Packaging material are _______ cost .

a. fixed
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 8 OF 14

b. variable
c. transportation
d. intermediary

33 Routing, Scheduling, Dispatching, Follow up, Inspection , Shipping are the elements of
_________ plan.

a. production
b. organisational
c. operational
d. financial

34 What can serve as a basis for formulation of strategies and policies?

a. Identifying needs
b. Identifying problems
c. Identifying strengths and weakness
d. Identifying threats and opportunities

35. Match the following components of business plan with their elements.

Component Elements
A. Operational plan i. Industry’s Profile
B. General introduction ii. Raw material
C. Organizational plan iii. Dispatching
D. Business venture iv. Roles and responsibilities of each
members

a. A-i, B-ii, C-iii, D-iv,

b. A-iii, B-iv, C-i, D-ii,
c. A-iii,B-i,C-iv,D-ii
d. A-iv, B-ii, C-i, D-iii,

36 The _________ goods directly satisfy the wants of the customers.

a. consumer
b. producer
c. durable goods
d. intermediary

37 Assertion (A) : The basic idea has to undergo a process of close examination.
Reason(R) : Businessmen should not give importance to the idea of long term
development.
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 9 OF 14

a. A is true but R is false.

b. Both A and R are true, but R is not the correct explanation of A
c. A is true and R is the correct explanation of A
d. Both A and R are false.

38 Britannia company is constantly improving on its exiting range of breads and bringing out
new variants like atta bread, multigrain bread, garlic bread etc. Its source of idea field is:

a. market demand
b. existing products and services
c. service sector
d. natural resources

39 “In spite of certain restrictions imposed on a private company, it enjoys certain privileges
under the Companies Act and a substantial number of entrepreneurs prefer to form a
private company.” Identify the benefit.

a. Restriction on rights to transfer shares.

b. Holding of a statutory meeting or filing a statutory report not required.
c. Every company has a common seal with name of the co. engraved on it.
d. It can be winded up as per the law.

40 Aditya and Siddharth are partners in a firm which manufactures leather belts. Due to health
issues, Aditya is forced to retire. Aditya’s minor son Varun, is admitted in the firm. At the
end of the year, the firm suffered a loss of Rs. 1,00,000. How is it going to effect Varun ?

a. Varun can be asked to bear his share of loss.

b. Varun can be admitted to the firm only to share benefits of a firm.
c. Varun will become the decision maker.
d. Varun has no role to play in the firm.

41 Mr. Ajay wanted to manufacture a “Smart RO” He looked into various options and finally
narrowed down to one option. He understand that his idea would have to follow a process.
Identify the process.

a. Process of idea germination

b. Process of creativity
c. Process of idea generation
d. Process of idea fields
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 10 OF 14

42 Siddhant is post- graduate in pharmacy and has worked with the pharmaceutical giant
‘Cipla’ for about 7 years. He now plans to open his own pharmaceutical company,
manufacturing painkillers and health tonics. His friend, who is a lawyer, warns him that as
a drug manufacturer, he would constantly be required to comply with various regulations,
failing in which would lead to initiation of lawsuits. Keeping this factor in view, ________
form of organisation would be suitable for Siddhant.

a. sole proprietorship
b. partnership
c. company
d. cooperative

43 In the late sixties, Ramsaran opened a poultry farm in his town, but it was a failure because
he failed to consider the fact around 75% of the population in his town was vegetarian.
Which external environment led to failure?

a. Legal environment
b. Technical environment
c. Social environment
d. Economic environment

44 Which amongst the following is NOT the consequence of non-registration of a partnership

firm ?

a. A partner cannot file the suit in any court.

b. The firm cannot apply for GST number.
c. The firm cannot claim a set-off in a dispute with the third party.
d. A case cannot be filed against a third party for claiming any right conferred by a
contract.

45 Which of the following is the characteristic of a private company?

a. It does not restrict any transfer of shares

b. It has minimum paid up capital of Rs. 5 lakh
c. Prohibits any invitation to the public to subscribe for securities of the company.
d. It uses the word ‘Limited’, at the end of its name.

46 Identify the type of business that makes a tangible product.

a. Manufacturing
b. Wholesale
c. Retail
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 11 OF 14

d. Service

47 Piyush and Ramesh are engaged in wholesale business of pulses. They buy pulses directly
from farmers in bulk and sell in small lots to the retailers. Both of them know their roles
and responsibilities. They have also laid down the procedure for solving conflicts between
them, if any. All the above information is described in an important component of a
business plan. Identify the component.

a. Financial Plan
b. Organisational Plan
c. Operational Plan
d. Production Plan

48 Transporting pashmina shawls from Kashmir to the markets of Delhi in winters is an

example of :

a. Place utility
b. Time utility
c. Form utility
d. Both (a) and (b)

SECTION C

49 Ramsaran, an auto mechanic, was working in a city. But due to ill health of his parents, he
was compelled to shift to his village. The village was approximately two kilometres away
from the nearest highway. He notice that vehicles which broke down had no repair facility
in that area. This gave him an idea to open an auto service centre for earning his livelihood.
He motivated some young boys of his village to join him for providing this service. He
trained them and employed them in his workshop.
Identify the factor under which Ramsaran ideas emerge.

a. Ability to perceive and preserve the basic

b. Ability to harness different sources of information
c. Vision and Creativity
d. Invention and Innovation

50 Rishabh lives in Vijay nagar, a residential colony near Delhi University. 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.
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 12 OF 14

He knows that he has a good market because of the location of his building. Identify the
other requirement and has to ensure before opting for this opportunity.

a. The rate of return on the investment has to be attractive

b. Assured market scope
c. Practicality of the idea
d. Competencies of an entrepreneur

51 Ramesh has decided to start his venture in manufacturing of plastic toys. He wants to get a
road-map for himself as to how to proceed and also wants to avail loan from the financial
institution. This requires him to prepare a business plan. He has no idea to prepare this
road-map, i.e. business plan. With whose help can Ramesh get his business plan prepared?

a. Lawyers
b. Accountants
c. Engineers
d. Any of the above

52 Ravi wants to start a series of ten fast food shops in a city. For that he took a survey of what
are the eating habits and likings in the different areas. He found out that the government is
supporting initiatives in setting up hotels and eateries. Financial institutions are also
providing easy rate of interest and approving these projects easily.
What has Ravi done for identification of choice of his project of opening restaurants?

a. Product Identification
b. Problem identification
c. Environment Scanning
d. Innovation and creativity

53 Saksham and Pratham were partners in taxi business. Their business was doing very well.
They thought of expanding but they also wanted to reduce personal risk. They wanted to
protect their own possessions from business creditors in event of failure, so they thought of
changing the form of business where their liability will be limited. For this, they wanted to
sell shares to friends, family and some employees.

a. Public limited company

b. Private limited company
c. Partnership
d. Sole Proprietorship

54 Vipul made his business plan with the help of an engineer. The plan was in the form of an
entertaining slide show complemented with an oral narrative. When he showed his business
plan to the bank officials, they were excited about the project and discussed various details.
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 13 OF 14

The business plan also had an executive summary and important graphs showing financial
trends. What type pf business plan has been presented by Vipul?

a. Elevator Pitch
b. A pitch deck with oral narrative
c. A written presentation for external stakeholders.
d. An internal operational plan.

55 North West Airlines started their operations from India to various parts of the country in the
year 2015. The company had been successful in its operations as more people preferred to
travel by air due to change in the lifestyle and attitude towards work and leisure. It is
______ factor as per PESTEL model.

a. political
b. economic
c. social
d. ecological

56 Mahesh, an entrepreneur is planning to enter into a new business of manufacturing laptop

bags with an inbuilt lock facility. Being highly complex and tedious, its manufacturing
operations need to be well planned. He decides that the complete bag will be manufactured
at his own factory i.e. no part of its manufacturing process will be outsourced.
Identify the important component of business plan that is discussed above.

a. General Introduction
b. Business Venture
c. Production Plan
d. Operational Plan

57 ‘Safe Wheelers’ is an upcoming cab service. The promoters knew that they are entering a
highly competitive market. They gathered information on existing cab services and
changing customer preferences and incorporated those observations into their operations. In
order to reach the customers promptly, they developed an ‘app’ to book, track and trace the
cabs 24 x 7. To create an environment of trust all drivers were grouped into two shifts 6
am- 6 pm for female drivers and 6pm – 6 am for male drivers. GPS systems were installed
in all cabs to monitor their movements. The fare payment was either by an e-wallet or
through ‘Safe Wheelers’ Smart Card. As soon as the services were launched, they were a
grand success.
Identify the concept that heled the company to succeed.

a. Opportunity Assessment
b. Market Analysis
c. Environment Scanning
MSD/2021-22/XII/EP /Term 1 /SET-A/PG- 14 OF 14

d. Customer feedback

58 After passing his 12th class with entrepreneurship as an elective subject 'Guru' started his
own business. He invested Rs. 2,00,000 as capital which was given to him by his father. He
obtained a loan of Rs.1,00,000 from his elder brother Ravi, who was working as an
assistant manager in Bank of Baroda. In the first year he incurred a loss of Rs. 50,000 and
had to pay to his suppliers their outstanding bills. This created a financial problem for him
and he had to take a loan of Rs.1,00,000 from the Bank of Baroda on the personal guarantee
of his brother, he started doing hard work, lowered the prices and informed his customers
about the quality of goods sold by him. The sales increased four times and he earned a net
profit of Rs.75,000 in the second year.
Identify the form of business organization started by "Guru".

a. Private Company
b. Sole Proprietorship
c. Joint Stock Company
d. Partnership

59 Sambhav thought of an idea to produce solar bins through which the garbage will get
decompose automatically using solar energy. He went through the process of studying pros
and cons of making such bin before launching it. Out of the following, identify the stage of
creative process discussed above.

a. Incubation
b. Innovation
c. Illumination
d. Implementation

60 Abhimanyu Industries Ltd. had a team of professionals and experts to draft a

comprehensive yearly document with all the relevant details of internal and external
elements in managing the venture. This document acts as a decision – making tool for the
management. The Chief Executive Officer of the company always pays special focus on
one element of this document that ensures the orderly flow of materials from raw state to
finished product with a proper system of quality control, as according to him ‘work your
plan’ is more important than ‘plan your work’.
Identify the ‘comprehensive yearly document’ being prepared by Abhimanyu Industries.

a. Financial Plan
b. Production Plan
c. Operational Plan
d. Organisational Plan