Question 1(a) [3 marks]

Differentiate between Entrepreneur and Intrapreneur.

Answer:

Aspect	Entrepreneur	Intrapreneur
Definition	Creates new business ventures	Works within existing organization
Risk	Bears personal financial risk	Limited risk, company bears it
Resources	Arranges own resources	Uses company's resources
Independence	Complete freedom	Works under company policies
Rewards	Gets all profits	Gets salary and incentives

Mnemonic: "ERIS vs IRIS" (External Risk Individual Success vs Internal Risk Institutional Success)

Question 1(b) [4 marks]

Explain 7-M resources for an Entrepreneur.

Answer:

The 7-M resources essential for entrepreneurial success are:

Resource	Description
Men	Human resources and skilled workforce
Money	Financial capital and funding sources
Material	Raw materials and physical inputs
Machine	Equipment and technology needed
Method	Production processes and techniques
Market	Target customers and demand
Management	Leadership and organizational skills

Mnemonic: "My Men Make Money Managing Material Markets"

Question 1(c) [7 marks]

Describe Step-by-Step procedure for recognition as Start up under Start up India Scheme.

Answer:

Step-by-Step Registration Process:

flowchart LR
    A[Visit startup.india.gov.in] --> B[Create Account]
    B --> C[Fill Application Form]
    C --> D[Upload Required Documents]
    D --> E[Submit Application]
    E --> F[DPIIT Review]
    F --> G[Certificate of Recognition]

Required Documents:

Certificate of Incorporation: Company registration proof
Partnership Deed: For LLP entities
Letter of Support: From incubator/accelerator
Recommendation Letter: From government body
Business Plan: Detailed venture description

Key Benefits After Recognition:

Tax exemptions for 3 years
Fast-track patent registration
Government tender preferences

Mnemonic: "DPIIT Gives Startups Amazing Recognition Benefits"

Question 1(c) OR [7 marks]

Define Micro, Small and Medium Enterprise. Explain the role of MSME in the economic development of the nation.

Answer:

MSME Classification Table:

Category	Investment Limit	Turnover Limit
Micro	Up to ₹1 crore	Up to ₹5 crores
Small	Up to ₹10 crores	Up to ₹50 crores
Medium	Up to ₹50 crores	Up to ₹250 crores

Role in Economic Development:

Employment Generation: Creates 45% of total employment
Export Contribution: Contributes 40% to total exports
GDP Share: Accounts for 30% of India's GDP
Innovation Hub: Promotes grassroots innovation
Regional Balance: Reduces urban-rural divide

Mnemonic: "MSME Makes Employment, Exports, GDP, Innovation, Regional-balance"

Question 2(a) [3 marks]

Define Business idea and Enlist its various sources.

Answer:

Business Idea Definition: A concept for starting a business venture that identifies market opportunities and proposes solutions.

Sources of Business Ideas:

Personal Experience: Own skills and interests
Market Gaps: Unmet customer needs
Technology Trends: New technological developments
Social Problems: Community issues needing solutions
Franchising: Proven business models

Mnemonic: "Personal Market Technology Social Franchise"

Question 2(b) [4 marks]

Write short notes on SWOT analysis.

Answer:

SWOT Analysis Components:

Internal Factors	External Factors
Strengths - Internal advantages	Opportunities - External chances
Weaknesses - Internal limitations	Threats - External challenges

Purpose:

Strategic Planning: Guides business decisions
Risk Assessment: Identifies potential problems
Resource Allocation: Optimizes use of assets
Competitive Analysis: Understands market position

Mnemonic: "Strong Weak Opportunities Threaten"

Question 2(c) [7 marks]

Explain various stages of Product Life Cycle (PLC).

Answer:

graph LR
    A[Introduction] --> B[Growth]
    B --> C[Maturity]
    C --> D[Decline]

PLC Stages Table:

Stage	Characteristics	Marketing Strategy
Introduction	Low sales, high costs	Create awareness
Growth	Rapid sales increase	Build market share
Maturity	Peak sales, intense competition	Defend market position
Decline	Falling sales and profits	Harvest or divest

Key Factors:

Sales Volume: Changes throughout lifecycle
Profit Margins: Vary by stage
Competition Level: Increases over time
Marketing Focus: Shifts with each stage

Mnemonic: "Introduction Grows Mature Declines"

Question 2(a) OR [3 marks]

What are the essentials of a Project Report?

Answer:

Essential Components:

Executive Summary: Project overview and highlights
Market Analysis: Demand and competition study
Technical Details: Production process and technology
Financial Projections: Cost estimates and revenue forecasts
Risk Assessment: Potential challenges and mitigation

Mnemonic: "Every Market Technical Financial Risk"

Question 2(b) OR [4 marks]

Enlist the advantages and disadvantages of e-commerce.

Answer:

E-commerce Benefits & Challenges:

Advantages	Disadvantages
Global reach and 24/7 availability	Security and privacy concerns
Lower operational costs	Lack of personal touch
Easy market entry	Technology dependence
Better customer tracking	Delivery and logistics issues

Mnemonic: "Global Low Easy Better vs Security Lack Technology Delivery"

Question 2(c) OR [7 marks]

Explain various steps of questionnaire design for Market Research.

Answer:

Questionnaire Design Process:

flowchart LR
    A[Define Research Objectives] --> B[Determine Information Needed]
    B --> C[Choose Question Types]
    C --> D[Develop Questions]
    D --> E[Organize Question Sequence]
    E --> F[Pretest Questionnaire]
    F --> G[Finalize Design]

Question Design Steps:

Objective Setting: Clear research goals
Information Planning: Required data types
Question Formatting: Open/closed ended
Language Selection: Simple and clear
Sequence Planning: Logical flow
Testing Phase: Pilot study
Final Review: Error correction

Mnemonic: "Objectives Information Format Language Sequence Test Review"

Question 3(a) [3 marks]

Differentiate between Management and Administration.

Answer:

Aspect	Management	Administration
Level	Middle and lower levels	Top level
Function	Implementation of policies	Policy formulation
Skills	Technical and human skills	Conceptual skills
Authority	Limited authority	Ultimate authority

Mnemonic: "Middle Implementation Technical Limited vs Top Policy Conceptual Ultimate"

Question 3(b) [4 marks]

Differentiate between Private Company and Public Company.

Answer:

Feature	Private Company	Public Company
Members	2 to 200 members	Minimum 7, no maximum
Share Transfer	Restricted transfer	Free transferability
Public Issue	Cannot issue shares publicly	Can issue to public
Disclosure	Limited disclosure requirements	Extensive disclosure

Mnemonic: "Private Restricts, Public Permits"

Question 3(c) [7 marks]

Explain Break-even analysis for a business practice.

Answer:

Break-even Formula: Break-even Point = Fixed Costs ÷ (Selling Price per unit - Variable Cost per unit)

graph LR
    A[Fixed Costs] --> B[Variable Costs]
    B --> C[Total Costs]
    C --> D[Revenue Line]
    D --> E[Break-even Point]

Components:

Fixed Costs: Rent, salaries, insurance
Variable Costs: Raw materials, labor
Selling Price: Revenue per unit
Contribution Margin: Price minus variable cost

Benefits:

Profit Planning: Determines minimum sales needed
Price Setting: Helps in pricing decisions
Cost Control: Identifies cost structure
Investment Decisions: Evaluates project viability

Mnemonic: "Fixed Variable Selling Contribution makes Profit Price Cost Investment"

Question 3(a) OR [3 marks]

What is Leadership? Give its characteristics.

Answer:

Leadership Definition: The ability to influence and guide others toward achieving common goals.

Leadership Characteristics:

Vision: Clear future direction
Communication: Effective interaction skills
Integrity: Honest and ethical behavior
Confidence: Self-assurance in decisions
Empathy: Understanding others' perspectives

Mnemonic: "Visionary Communicators with Integrity, Confidence, Empathy"

Question 3(b) OR [4 marks]

Enlist functions of management and explain planning.

Answer:

Management Functions:

Planning: Setting objectives and strategies
Organizing: Arranging resources and structure
Staffing: Recruiting and managing people
Directing: Leading and motivating employees
Controlling: Monitoring and correcting performance

Planning Process: Planning involves setting goals, developing strategies, and creating action plans for future activities.

Mnemonic: "People Organize Staff Direct Control"

Question 3(c) OR [7 marks]

Explain the features of a Joint Stock Company and write down its advantage.

Answer:

Joint Stock Company Features:

Feature	Description
Separate Legal Entity	Independent legal status
Limited Liability	Members' liability is limited
Transferable Shares	Easy ownership transfer
Perpetual Succession	Continuous existence
Common Seal	Official signature

Advantages:

Large Capital: Can raise substantial funds
Risk Distribution: Limited liability protection
Professional Management: Skilled managers
Credibility: Public trust and recognition
Growth Opportunities: Expansion possibilities

Mnemonic: "Separate Limited Transferable Perpetual Common gives Large Risk Professional Credibility Growth"

Question 4(a) [3 marks]

Enlist any three State or National level Financial Institutions for support in developing new enterprise.

Answer:

Financial Institutions:

SIDBI: Small Industries Development Bank of India
NABARD: National Bank for Agriculture and Rural Development
NSIC: National Small Industries Corporation
State Financial Corporations: State-level funding
MUDRA: Micro Units Development & Refinance Agency

Mnemonic: "SIDBI NABARD NSIC State MUDRA"

Question 4(b) [4 marks]

What is Startup Mentor? What are the benefits of keeping Mentor.

Answer:

Startup Mentor Definition: An experienced professional who guides entrepreneurs with advice, connections, and support.

Benefits of Mentorship:

Benefit	Description
Experience Sharing	Learn from past mistakes
Network Access	Industry connections
Strategic Guidance	Business direction advice
Skill Development	Personal growth support

Mnemonic: "Experience Network Strategy Skills"

Question 4(c) [7 marks]

Explain different types of Leadership models.

Answer:

Leadership Models:

Model	Characteristics	Application
Autocratic	Centralized decision-making	Crisis situations
Democratic	Participative approach	Team environments
Laissez-faire	Hands-off style	Creative projects
Transformational	Inspirational leadership	Change management
Transactional	Reward-based system	Routine operations

Selection Factors:

Situation: Context determines style
Team Maturity: Experience level matters
Organizational Culture: Company values
Task Complexity: Nature of work

Mnemonic: "Autocratic Democratic Laissez Transformational Transactional with Situation Team Organizational Task"

Question 4(a) OR [3 marks]

Write short notes on Startup Incubators.

Answer:

Startup Incubators: Organizations that support early-stage startups with resources, mentorship, and funding.

Services Provided:

Office Space: Shared working facilities
Mentorship: Expert guidance and advice
Funding: Seed capital and investment
Networking: Industry connections
Training: Skill development programs

Mnemonic: "Office Mentorship Funding Networking Training"

Question 4(b) OR [4 marks]

What is IPR? Write down its importance.

Answer:

IPR Definition: Intellectual Property Rights protect creations of the mind including inventions, designs, and artistic works.

Importance:

Benefit	Description
Innovation Protection	Safeguards creative ideas
Commercial Value	Creates business assets
Market Advantage	Competitive differentiation
Revenue Generation	Licensing opportunities

Mnemonic: "Innovation Commercial Market Revenue"

Question 4(c) OR [7 marks]

Discuss the Financial organization Management.

Answer:

Financial Organization Structure:

graph TD
    A[Chief Financial Officer] --> B[Financial Controller]
    A --> C[Treasurer]
    B --> D[Accounting Manager]
    B --> E[Budget Manager]
    C --> F[Cash Manager]
    C --> G[Investment Manager]

Key Functions:

Financial Planning: Budget preparation and forecasting
Fund Management: Capital structure and liquidity
Risk Management: Financial risk assessment
Performance Monitoring: Financial analysis and reporting
Compliance: Regulatory requirements adherence
Investment Decisions: Capital allocation strategies

Organizational Benefits:

Clear Accountability: Defined roles and responsibilities
Efficient Operations: Streamlined financial processes
Better Control: Enhanced financial oversight
Strategic Support: Informed decision making

Mnemonic: "Planning Fund Risk Performance Compliance Investment gives Clear Efficient Better Strategic"

Question 5(a) [3 marks]

What is project planning? Write down its purposes.

Answer:

Project Planning Definition: The process of defining project scope, objectives, and steps needed to achieve goals.

Purposes:

Goal Setting: Clear objective definition
Resource Allocation: Efficient use of resources
Time Management: Schedule development
Risk Mitigation: Problem anticipation
Quality Assurance: Standard maintenance

Mnemonic: "Goals Resources Time Risk Quality"

Question 5(b) [4 marks]

Write short notes on Project cost estimation.

Answer:

Cost Estimation Components:

Cost Type	Examples
Direct Costs	Materials, labor, equipment
Indirect Costs	Overhead, administration
Fixed Costs	Rent, insurance, salaries
Variable Costs	Raw materials, utilities

Estimation Methods:

Bottom-up: Detailed activity costing
Top-down: High-level approximation
Analogous: Historical project comparison
Parametric: Mathematical models

Mnemonic: "Direct Indirect Fixed Variable using Bottom Top Analogous Parametric"

Question 5(c) [7 marks]

What is feasibility analysis in business? Explain various analysis covered in feasibility study.

Answer:

Feasibility Analysis Definition: Systematic evaluation of project viability before implementation.

Types of Feasibility Analysis:

Analysis Type	Focus Area	Key Questions
Technical	Technology and processes	Can it be built?
Economic	Financial viability	Is it profitable?
Market	Demand and competition	Will it sell?
Legal	Regulatory compliance	Is it legal?
Operational	Implementation capability	Can we manage it?
Schedule	Time constraints	Can we deliver on time?

Benefits:

Risk Reduction: Identifies potential problems early
Resource Optimization: Prevents wasteful investments
Decision Support: Provides data for go/no-go decisions
Stakeholder Confidence: Builds investor trust

Process Flow:

Define project scope and objectives
Conduct various feasibility analyses
Evaluate results and alternatives
Make implementation recommendation

Mnemonic: "Technical Economic Market Legal Operational Schedule reduces Risk, Optimizes Resources, Supports Decisions, builds Confidence"

Question 5(a) OR [3 marks]

What is bankruptcy? Write down the reasons of bankruptcy in business.

Answer:

Bankruptcy Definition: Legal process where individuals or businesses unable to pay debts seek relief from creditors.

Reasons for Business Bankruptcy:

Poor Financial Management: Inadequate cash flow control
Market Competition: Loss of market share
Economic Recession: External economic factors
Over-expansion: Rapid growth without proper planning
High Debt Burden: Excessive borrowing costs

Mnemonic: "Poor Market Economic Over High"

Question 5(b) OR [4 marks]

Distinguish between fixed cost and variable cost.

Answer:

Aspect	Fixed Cost	Variable Cost
Nature	Remains constant	Changes with production
Examples	Rent, insurance, salaries	Raw materials, labor
Behavior	Independent of output	Directly proportional
Control	Difficult to change	Easier to manage

Mnemonic: "Fixed Remains, Variable Changes"

Question 5(c) OR [7 marks]

Describe various business ethics and their importance.

Answer:

Business Ethics Types:

Ethics Area	Description	Practices
Corporate Responsibility	Company's duty to society	CSR activities, environmental care
Employee Relations	Fair treatment of workers	Equal opportunities, safety
Customer Relations	Honest dealing with clients	Quality products, fair pricing
Supplier Relations	Ethical procurement	Fair contracts, timely payments
Environmental Ethics	Sustainable practices	Waste reduction, green technology

Importance:

Reputation Building: Creates positive brand image
Stakeholder Trust: Builds confidence among all parties
Legal Compliance: Avoids regulatory issues
Employee Motivation: Improves workplace culture
Long-term Success: Ensures sustainable growth
Competitive Advantage: Differentiates from competitors

Implementation Framework:

Develop ethical codes and policies
Provide ethics training to employees
Establish reporting mechanisms
Monitor and evaluate ethical practices
Take corrective actions when needed

Benefits for Business:

Risk Management: Prevents ethical scandals
Customer Loyalty: Builds lasting relationships
Investor Confidence: Attracts ethical investors
Regulatory Support: Maintains good government relations

Mnemonic: "Corporate Employee Customer Supplier Environmental builds Reputation Trust Legal Motivation Success Competitive through Risk Customer Investor Regulatory"