Question 1(a) [3 marks]

Distinguish between Entrepreneur and Manager.

Answer:

Aspect	Entrepreneur	Manager
Primary Role	Creates new ventures and opportunities	Administers existing operations
Risk Taking	High risk-taker, bears uncertainty	Low to moderate risk, follows guidelines
Decision Making	Quick, intuitive decisions	Systematic, policy-based decisions
Focus	Innovation and growth	Efficiency and control
Rewards	Profit and ownership	Salary and benefits

Mnemonic: "CRIFO" - Creates Risk Innovation Focus Ownership

Question 1(b) [4 marks]

Explain any four functions of Entrepreneurship.

Answer:

Job Creation: Entrepreneurs establish new businesses, creating employment opportunities for others
Innovation: They introduce new products, services, or processes to meet market needs
Economic Development: Generate wealth, contribute to GDP, and stimulate economic growth
Risk Taking: Accept business uncertainties and financial risks for potential profits

Diagram:

graph TD
    A[Entrepreneurship Functions] --> B[Job Creation]
    A --> C[Innovation]
    A --> D[Economic Development]
    A --> E[Risk Taking]
    B --> F[Employment Generation]
    C --> G[New Products/Services]
    D --> H[GDP Growth]
    E --> I[Business Uncertainty]

Mnemonic: "JIER" - Job Innovation Economic Risk

Question 1(c) [7 marks]

How MSMEs are important in the development of economy of India?

Answer:

Contribution Area	Importance
Employment Generation	Second largest employer after agriculture
Industrial Production	Contributes 45% of manufacturing output
Export Earnings	Accounts for 40% of total exports
GDP Contribution	Contributes around 30% to India's GDP
Rural Development	Promotes balanced regional growth

Manufacturing Flexibility: Quick adaptation to market changes and customer requirements
Innovation Hub: Supports large industries as suppliers and vendors
Entrepreneurship Development: Encourages individual business ownership and self-employment

Mnemonic: "EIGER-MIE" - Employment Industrial GDP Export Rural Manufacturing Innovation Entrepreneurship

Question 1(c) OR [7 marks]

How Student Start-up and Innovation Policy (SSIP) helps diploma students to start their own start-up?

Answer:

SSIP Benefits	Description
Financial Support	Seed funding and grants up to ₹2 lakhs
Incubation Centers	Access to 50+ incubation centers across Gujarat
Mentorship	Industry expert guidance and counseling
Infrastructure	Free co-working spaces and equipment access
Skill Development	Entrepreneurship training programs

Academic Integration: Start-up activities counted as academic credits
IPR Support: Help in patent filing and intellectual property protection
Market Access: Networking opportunities with investors and industry partners

Mnemonic: "FIMSAIM" - Financial Incubation Mentorship Skill Academic IPR Market

Question 2(a) [3 marks]

What is project report? Show its importance in project implementation.

Answer:

A project report is a comprehensive document containing detailed information about a proposed business venture including technical, financial, and commercial aspects.

Importance:

Loan Approval: Banks require project reports for financing decisions
Resource Planning: Helps in proper allocation of resources and manpower
Risk Assessment: Identifies potential challenges and mitigation strategies

Mnemonic: "LRR" - Loan Resource Risk

Question 2(b) [4 marks]

How the Break-Even Point (in terms of sales revenue) is calculated? Also show graphical representation with example.

Answer:

Formula: Break-Even Point (Sales) = Fixed Costs ÷ Contribution Margin Ratio

Where: Contribution Margin Ratio = (Sales - Variable Costs) ÷ Sales

Example:

Fixed Costs = ₹50,000
Selling Price per unit = ₹100
Variable Cost per unit = ₹60
Contribution per unit = ₹40
Contribution Margin Ratio = 40%
Break-Even Sales = ₹50,000 ÷ 0.40 = ₹1,25,000

Diagram:

    Revenue/Costs (₹)
         |
    2,00,000 |     /
             |    /  Total Revenue
    1,50,000 |   /
             |  /
    1,25,000 |./_____ Break-Even Point
             |/     
    1,00,000 |      Total Costs
             |     /
     50,000  |____/_____ Fixed Costs
             |
             +------------------------> Units Sold
             0   500  1,250  2,000

Mnemonic: "FCR" - Fixed Costs Contribution Ratio

Question 2(c) [7 marks]

Explain the need of market survey and also explain the market test method of market survey.

Answer:

Need of Market Survey:

Purpose	Description
Demand Assessment	Understand customer needs and preferences
Competition Analysis	Study competitor strategies and pricing
Market Size	Estimate total addressable market
Pricing Strategy	Determine optimal price points

Market Test Method:

Test Marketing: Launch product in limited geographic area
Focus Groups: Conduct discussions with target customers
Pilot Studies: Small-scale product trials with selected customers
Online Surveys: Digital questionnaires for broader reach

graph TD
    A[Market Survey Need] --> B[Demand Assessment]
    A --> C[Competition Analysis]
    A --> D[Market Size]
    A --> E[Pricing Strategy]
    
    F[Market Test Methods] --> G[Test Marketing]
    F --> H[Focus Groups]
    F --> I[Pilot Studies]
    F --> J[Online Surveys]

Mnemonic: "DCMP-TFPO" - Demand Competition Market Pricing Test Focus Pilot Online

Question 2(a) OR [3 marks]

What is marketing plan? Explain in brief.

Answer:

A marketing plan is a strategic document outlining how a business will promote and sell its products or services to target customers.

Components:

Market Analysis: Customer demographics and behavior study
Marketing Mix: Product, Price, Place, Promotion strategies
Budget Allocation: Financial resources for marketing activities

Mnemonic: "AMB" - Analysis Mix Budget

Question 2(b) OR [4 marks]

Prepare SWOT analysis for a company manufacturing e-bike in urban region in Gujarat.

Answer:

SWOT Analysis	E-bike Manufacturing Company
Strengths	• Government support for electric vehicles • Growing environmental awareness • Lower operating costs than petrol vehicles
Weaknesses	• High initial investment • Limited charging infrastructure • Battery replacement costs
Opportunities	• FAME scheme subsidies • Urban pollution concerns • Rising fuel prices
Threats	• Competition from established players • Technology obsolescence • Economic slowdown affecting purchasing power

Mnemonic: "SWOT-GILH" - Strengths Weaknesses Opportunities Threats Government Infrastructure Low High

Question 2(c) OR [7 marks]

What is innovation? List any five innovations of any product or process or service.

Answer:

Innovation is the process of creating new or improved products, services, or processes that provide value to customers and competitive advantage to organizations.

Five Product/Service Innovations:

Innovation	Type	Description
UPI Payment System	Service	Digital payment platform revolutionizing transactions
Tesla Electric Cars	Product	Sustainable automotive technology with autonomous features
Netflix Streaming	Service	On-demand entertainment delivery model
3D Printing	Process	Additive manufacturing technology
Zoom Video Calling	Service	Remote communication platform for virtual meetings

Value Creation: Each innovation solved existing customer problems
Market Disruption: Changed traditional business models and user behavior
Technology Integration: Combined multiple technologies for enhanced user experience

Mnemonic: "UNTZI-VTM" - UPI Netflix Tesla Zoom Innovation Value Technology Market

Question 3(a) [3 marks]

Write short note on partnership firm.

Answer:

A partnership firm is a business structure where two or more individuals jointly own and operate a business for profit.

Key Features:

Shared Ownership: Multiple partners contribute capital and expertise
Joint Liability: Partners are personally liable for business debts
Profit Sharing: Earnings distributed according to partnership agreement

Mnemonic: "SJP" - Shared Joint Profit

Question 3(b) [4 marks]

Explain the various activities involved in 'staffing' function of management with example.

Answer:

Staffing Activity	Description	Example
Recruitment	Attracting potential candidates	Posting job advertisements on LinkedIn
Selection	Choosing suitable candidates	Conducting interviews and aptitude tests
Training	Skill development programs	New employee orientation sessions
Performance Appraisal	Evaluating employee performance	Annual performance reviews

Placement: Assigning right person to right job position
Promotion: Career advancement based on performance and experience
Compensation: Determining fair wages and benefits package

Mnemonic: "RSTPPC" - Recruitment Selection Training Performance Placement Promotion Compensation

Question 3(c) [7 marks]

Explain the autocratic leadership and state its advantages.

Answer:

Autocratic Leadership is a management style where the leader makes all decisions independently without consulting team members.

Characteristics:

Centralized Decision Making: Leader has complete authority and control
Clear Chain of Command: Well-defined hierarchy and reporting structure
Limited Employee Input: Minimal participation in decision-making process

Advantages:

Advantage	Description
Quick Decisions	Faster problem-solving without lengthy consultations
Clear Direction	Employees know exactly what is expected
Crisis Management	Effective during emergencies requiring immediate action
Productivity	Higher output due to structured work environment
Accountability	Single point of responsibility for outcomes

graph TD
    A[Autocratic Leadership] --> B[Centralized Decisions]
    A --> C[Clear Chain of Command]
    A --> D[Limited Employee Input]
    
    E[Advantages] --> F[Quick Decisions]
    E --> G[Clear Direction]
    E --> H[Crisis Management]
    E --> I[Higher Productivity]
    E --> J[Single Accountability]

Mnemonic: "QCCPA" - Quick Clear Crisis Productivity Accountability

Question 3(a) OR [3 marks]

Write short note on joint stock company.

Answer:

A joint stock company is a business organization where capital is divided into shares owned by multiple shareholders.

Key Features:

Limited Liability: Shareholders' liability limited to their investment
Transferable Shares: Ownership can be easily bought and sold
Separate Legal Entity: Company exists independently of its owners

Mnemonic: "LTS" - Limited Transferable Separate

Question 3(b) OR [4 marks]

Explain the various activities involved in 'organizing' function of management with example.

Answer:

Organizing Activity	Description	Example
Job Design	Defining roles and responsibilities	Creating job descriptions for marketing manager
Departmentalization	Grouping similar activities	Forming HR, Finance, and Operations departments
Delegation	Assigning authority and responsibility	Manager delegating budget approval to team leads
Coordination	Ensuring smooth workflow	Weekly inter-department meetings

Resource Allocation: Distributing financial and human resources efficiently
Span of Control: Determining number of subordinates per manager
Unity of Command: Each employee reports to one superior

Mnemonic: "JDDCRSU" - Job Departmentalization Delegation Coordination Resource Span Unity

Question 3(c) OR [7 marks]

Explain the democratic leadership and state its advantages.

Answer:

Democratic Leadership is a management style where leaders involve team members in decision-making processes and encourage participation.

Characteristics:

Participative Decision Making: Team members contribute to problem-solving
Open Communication: Two-way communication between leaders and employees
Shared Responsibility: Collective ownership of outcomes and results

Advantages:

Advantage	Description
Higher Job Satisfaction	Employees feel valued and heard
Better Quality Decisions	Multiple perspectives improve decision quality
Improved Creativity	Diverse ideas and innovative solutions
Team Building	Stronger collaboration and trust
Employee Development	Skills enhancement through participation

graph TD
    A[Democratic Leadership] --> B[Participative Decisions]
    A --> C[Open Communication]
    A --> D[Shared Responsibility]
    
    E[Advantages] --> F[Job Satisfaction]
    E --> G[Quality Decisions]
    E --> H[Creativity]
    E --> I[Team Building]
    E --> J[Employee Development]

Mnemonic: "JQCTE" - Job Quality Creativity Team Employee

Question 4(a) [3 marks]

State various functions of District Industries center.

Answer:

Registration Services: MSME registration and various license approvals
Financial Assistance: Guidance for loans and government scheme applications
Technical Support: Providing technical guidance and consultancy services

Mnemonic: "RFT" - Registration Financial Technical

Question 4(b) [4 marks]

Identify any two state level incubators and write their functions.

Answer:

Incubator	Functions
i-HUB Gujarat	• Startup mentoring and acceleration programs • Funding support and investor connections • Infrastructure and co-working space facilities
CIIE Ahmedabad	• Technology commercialization support • Industry-academia collaboration • Scale-up programs for growing startups

Common Functions:

Mentorship Programs: Expert guidance from industry professionals
Networking Events: Connecting startups with investors and partners

Mnemonic: "MFIN" - Mentoring Funding Infrastructure Networking

Question 4(c) [7 marks]

What is start-up eco system? List various activities and elements of start-up eco system.

Answer:

Start-up Ecosystem is a interconnected network of organizations, individuals, and resources that support entrepreneurship and startup development.

Key Elements:

Element	Description
Entrepreneurs	Visionary individuals starting new ventures
Investors	Angel investors, VCs providing funding
Incubators/Accelerators	Support organizations for early-stage startups
Government	Policy makers and regulatory bodies
Educational Institutions	Universities and research centers
Service Providers	Legal, accounting, consulting firms

Activities:

Mentoring Sessions: Regular guidance from experienced entrepreneurs
Networking Events: Startup meetups and investor pitch sessions
Funding Rounds: Seed, Series A, B funding opportunities
Skill Development: Technical and business training programs

graph TD
    A[Startup Ecosystem] --> B[Entrepreneurs]
    A --> C[Investors]
    A --> D[Incubators]
    A --> E[Government]
    A --> F[Educational Institutions]
    A --> G[Service Providers]
    
    H[Activities] --> I[Mentoring]
    H --> J[Networking]
    H --> K[Funding]
    H --> L[Skill Development]

Mnemonic: "EIGEES-MNFS" - Entrepreneurs Investors Government Education Service Mentoring Networking Funding Skill

Question 4(a) OR [3 marks]

State various functions of Small industries Development Bank of India (SIDBI).

Answer:

Financial Services: Direct and indirect lending to MSMEs and startups
Development Services: Capacity building and skill development programs
Promotional Activities: Market development and technology upgradation support

Mnemonic: "FDP" - Financial Development Promotional

Question 4(b) OR [4 marks]

Identify any two national level incubators and write their functions.

Answer:

Incubator	Functions
T-Hub Hyderabad	• India's largest startup incubator • Technology innovation and R&D support • Global market access programs
NASSCOM 10,000 Startups	• Pan-India startup acceleration program • Corporate partnership facilitation • Ecosystem building and policy advocacy

Common Functions:

Acceleration Programs: Intensive startup development and mentoring
Corporate Connections: Linking startups with large enterprise partners

Mnemonic: "TIGAC" - Technology Innovation Global Acceleration Corporate

Question 4(c) OR [7 marks]

Which steps should be taken to avoid failure of start-up? Explain in brief.

Answer:

Steps to Avoid Startup Failure:

Step	Description
Market Research	Thorough understanding of customer needs and market demand
Financial Planning	Proper cash flow management and funding strategies
Team Building	Hiring skilled and committed team members
Product Validation	Testing product-market fit before full launch
Customer Focus	Continuous customer feedback and satisfaction

Risk Management: Identifying potential threats and mitigation strategies
Adaptability: Flexibility to pivot based on market changes
Legal Compliance: Proper registration and regulatory adherence

graph TD
    A[Avoid Startup Failure] --> B[Market Research]
    A --> C[Financial Planning]
    A --> D[Team Building]
    A --> E[Product Validation]
    A --> F[Customer Focus]
    A --> G[Risk Management]
    A --> H[Adaptability]
    A --> I[Legal Compliance]

Mnemonic: "MFTPCRAL" - Market Financial Team Product Customer Risk Adaptability Legal

Question 5(a) [3 marks]

How Return on Investment (ROI) is calculated?

Answer:

ROI Formula: ROI = (Net Profit ÷ Total Investment) × 100

Example:

Investment = ₹1,00,000
Net Profit = ₹20,000
ROI = (20,000 ÷ 1,00,000) × 100 = 20%

Mnemonic: "NTH" - Net Total Hundred

Question 5(b) [4 marks]

Show the significance of technical analysis in feasibility study.

Answer:

Significance	Description
Technology Assessment	Evaluating technical viability and requirements
Resource Planning	Determining machinery, equipment, and infrastructure needs
Process Design	Optimal production methods and workflow
Quality Standards	Ensuring product meets industry specifications

Mnemonic: "TRPQ" - Technology Resource Process Quality

Question 5(c) [7 marks]

Explain the characteristics of corporate social responsibility.

Answer:

Corporate Social Responsibility (CSR) refers to business practices involving initiatives that benefit society and demonstrate commitment to ethical operations.

Key Characteristics:

Characteristic	Description
Voluntary Nature	Beyond legal requirements, self-imposed commitments
Stakeholder Orientation	Considering impact on all stakeholders, not just shareholders
Triple Bottom Line	Focus on People, Planet, and Profit
Sustainable Practices	Long-term environmental and social sustainability
Transparency	Open reporting and accountability

Community Development: Education, healthcare, and infrastructure projects
Environmental Protection: Pollution control and resource conservation
Employee Welfare: Fair wages, safe working conditions, skill development

graph TD
    A[CSR Characteristics] --> B[Voluntary Nature]
    A --> C[Stakeholder Orientation]
    A --> D[Triple Bottom Line]
    A --> E[Sustainable Practices]
    A --> F[Transparency]
    
    G[CSR Activities] --> H[Community Development]
    G --> I[Environmental Protection]
    G --> J[Employee Welfare]

Mnemonic: "VSTST-CEE" - Voluntary Stakeholder Triple Sustainable Transparency Community Environmental Employee

Question 5(a) OR [3 marks]

How Return on Sales (ROS) is calculated?

Answer:

ROS Formula: ROS = (Net Profit ÷ Net Sales) × 100

Example:

Net Sales = ₹5,00,000
Net Profit = ₹50,000
ROS = (50,000 ÷ 5,00,000) × 100 = 10%

Mnemonic: "NSH" - Net Sales Hundred

Question 5(b) OR [4 marks]

Show the significance of market analysis in feasibility study.

Answer:

Significance	Description
Demand Forecasting	Estimating future market size and growth
Competition Assessment	Understanding competitive landscape
Pricing Strategy	Determining optimal price points
Market Segmentation	Identifying target customer groups

Mnemonic: "DCPM" - Demand Competition Pricing Market

Question 5(c) OR [7 marks]

Explain the characteristics of ethics.

Answer:

Ethics are moral principles that govern behavior and decision-making in personal and professional contexts.

Key Characteristics:

Characteristic	Description
Universal Principles	Apply across cultures and situations
Moral Standards	Based on concepts of right and wrong
Voluntary Compliance	Internal motivation rather than external force
Consequential Thinking	Considering outcomes and impacts
Stakeholder Consideration	Accounting for all affected parties

Consistency: Ethical behavior remains constant across situations
Transparency: Open and honest communication and actions
Accountability: Taking responsibility for decisions and their consequences

graph TD
    A[Ethics Characteristics] --> B[Universal Principles]
    A --> C[Moral Standards]
    A --> D[Voluntary Compliance]
    A --> E[Consequential Thinking]
    A --> F[Stakeholder Consideration]
    A --> G[Consistency]
    A --> H[Transparency]
    A --> I[Accountability]

Mnemonic: "UMVCSCTA" - Universal Moral Voluntary Consequential Stakeholder Consistency Transparency Accountability