BHARATIYA VIDYA BHAVAN’S PUBLIC SCHOOL

(VIDYASHRAM)
JUBILEE HILLS, HYDERABAD-500 096
TERM-I (2021-22)
Class: XII Marks:35
Sub: Entrepreneurship Time: 90 mins

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

1. Gopi, in order to promote local craftsmen of Gujarat, formed an organization where the persons
voluntarily associate themselves to promote common economic interest. The basic purpose of this
organization was to help these craftsmen to find a market for their products. It had a managing
committee that was elected on the basis of 'one member one vote’. Identify the form of business
organization set up by Gopi.
(a) Partnership (b) Sole proprietorship
(c) Co-operative organization (d) Joint stock company
2. Entrepreneur perceives opportunity from ___________ .
(a) Problems (b) Needs
(c) Both (a) and (b) (d) None of these
3. Nilesh wanted to launch a new type of air-conditioner which would itself regulate the temperature
according to the weather. He thought of first assessing the trend in the market for the design of the air
conditioner. For this he appointed Sharon to study the market, surveyed a lot of people in the market
by asking them about their preference of specification in the air conditioner. Identify the type of trend
spotting used by Sharon:
(a) Read trend (b) Talk trend
(c) Watch trend (d) None of these
4. Tushar, an entrepreneurship graduate, saw that there were a lot of minerals in the land that his
ancestors have owned for a long time. He thought of setting up a mine. For this he not only set up the
factory but also took permission from the minerals and energy department so that he could extract the
minerals in his land. What is the source that he used to generate his business idea?
(a) Natural resources (b) Creative efforts
(c) Service sector (d) Existing products
5. Naveen has just completed his B. Tech. and wants to start his own business. He knew that the
demand for electricity in India was increasing day by day, whereas its generation was not sufficient.
Naveen shared his views with some of his friends and they all decided to start the business of
electricity generation. They experimented with various methods and ultimately succeeded in electricity
generation through garbage. They all were happy as India is also facing the problem of garbage
disposal. The source of the idea field from where the idea has been generated by Naveen and his
friends is __________ .
(a) Natural resources (b) Creative efforts
(c) Service sector (d) Existing products
6. (i) Each partner is liable for acts performed by them during the partnership business
(ii) Each partner can bind other partners and the firm as per the mutual understanding in a written
format.
Which feature of partnership is highlighted by these two statements?
(a) Implied authority (b) Utmost good faith
(c) Mutual Agency (d) Agreement
7. Identify the second element in the innovation process from the given options.
(a) Resource organization (b) Commercial application
(c) Implementation (d) Analytical planning
8.Assertion (A): Elevator pitch is a well-known format for a business plan (especially for a newly
started business), It is a three-minute summary of the business plan's executive summary.
Reason (R) : Elevator Pitch format is used as a teaser to awaken the interest of potential funders,
customers, or strategic partners.
Choose the Correct Option:
(a) Both Assertion and Reason are correct and Reason is correct explanation of the Assertion
(b) Both Assertion and Reason are correct but Reason is not the correct explanation of the Assertion
(c) Only Assertion is correct
(d) Only Reason is correct
9. Mannu manufactured and sold the crockery brand "Krishna". The brand was facing a lot of
problems recently. To revive his business, he employed Jayant. Jayant did a lot of surveys. In the
survey, he found out the design of the brand was being obsolete and so people were not buying it as
they already had the design as the women were not interested to buy the same type of design that their
friends have. So, he suggested Mannu to change the design and reintroduce it in the market. Out of the
following, identify the concept of entrepreneurship stated in the above case __________.
(a) Trend spotting (b) Sensing entrepreneurial opportunities
(c) Problem identification (d) Environment scanning
10. Which of the following is an economic factor?
(a) Population demographic (b) Level of education
(c) Unemployment (d) Attitude towards work
11. Calculate the total weighted average contribution per unit.
Products Sales price per unit Variable cost per unit Sales Mix percentage

P Rs. 20 Rs.10 20 %

Q Rs.32 Rs. 12 20 %

R Rs.50 Rs. 20 60%

So the total weighted average contribution per unit will be?
(a) Rs.42
(b) Rs.24
(c) Rs.30
(d) Rs.32

12. __________ sector is the most growing field these days.

(a) Primary
(b) Secondary
(c) Service
(d) None of the above
13. Match the following by choosing the correct option.

Column A Column B

(i) Lifestyle and values (a) Economic environment

(ii) Payment through e-wallets (b) Political environment

(iii) Rise in inflation (c) Legal environment

(iv) Attitude of government towards business (d) Technological environment

(v) Statutory warning on advertisement (e) Social environment

(a) (i)-(a); (ii)-(b); (iii)-(e); (iv)-(d); (v)-(c)

(b) (i)-(b); (ii)-(e); (iii)-(d); (iv)-(c); (v)-(a)
(c) (i)-(e); (ii)-(d); (iii)-(a); (iv)-(b); (v)-(c)
(d) (i)-(d); (ii)-(a); (iii)-(b); (iv)-(c); (v)-(e)
14. Rajiv and Ramesh entered into a verbal agreement to form a firm and don't get their firm
registered. They agreed to share its profits. Their business was running smoothly. One day a dispute
arose between Rajiv and Ramesh regarding the profit-sharing ratio. Rajiv decided to move to the court
and enforce his rights against the firm and Ramesh. Lawyer told him that he could not file a case
against the firm and Ramesh. Why was Rajiv not able to file a case against the firm and Rajiv?
(a) Because their firm is not registered (b) Because they don't have partnership deed
(c) Because their business is illegal
(d) Because they are not fulfilling the requirement of minimum partners by Partnership Act, 1936
15. Jonny saw that people were having less time to shop for their daily needs. He thought of launching
an app-based delivery system where anyone could order anything and get delivery within a few hours
or at the time they choose. He wanted this idea to be creative. For this, he decided to hire Priyanka as
her creative manager. Priyanka needs to follow different steps to develop a creative idea for his app
which are as
(i) Idea Germination (ii) illumination
(iii) Incubation (iv) Preparation (v) Verification
Arrange the steps in correct order:
(a) (i)-(iv)-(iii)-(ii)-(v) (b) (ii)-(iv)-(i)-(iii)-(v)
(c) (iv)-(ii)-(iii)-(i)-(v) (d) (ii)-(iii)-(iv)-(i)-(v)
16. Paras Electronics scans the environment every six months to keep the products that it produces of
the latest taste. Whenever there is a slack in the business, it introduces various offers which grabs the
attention of the customers and helps them to boost their sales. The business has been growing ever
since it was set up and has now become a number one choice of the people to buy any type of
electronics item. Identify the benefit that Paras Electronics gained from scanning the environment.
(a) Formulation of strategies and policies (b) Better performance
(c) Image building (d) All of the above
17. Contribution = _________.
(a) Fixed cost + variable cost (b) Selling price - variable cost
(c) Total cost - Profit (d) None of the above
18. The fixed cost of ABC Limited is Rs.6,50,000. The selling price per unit is Rs.240 and the variable
cost is Rs.110 per unit. The break-even quantity will be---------- units.
(a) 7000 (b) 5000
(c) 6500 (d) 7500
19. Assertion (A): Under the concept of Business Plan, a detailed plan describing planning details that
are needed by management is called an internal operational plan.
Reason (R) : An internal operational plan may not be of interest to external stakeholders because it is
mainly related to the decision making by the management.
Choose the Correct Option:
(a) Both Assertion and Reason are correct and Reason is correct explanation of the Assertion
(b) Both Assertion and Reason are correct but Reason is not the correct explanation of the Assertion
(c) Only Assertion is correct (d) Only Reason is correct
20. Which amongst the following is/are the elements of the operational plan?
(a) Routing, Scheduling, Follow-up
(b) Follow-up, business situation analysis, Cash flow statement
(c) Scheduling, inspection, investment decision
(d) All of these
21. __________ plan is that part of the business plan which describes the proposed venture’s opted
form of ownership.
(a) Operational (b) Production
(c) Organizational (d) Business venture
22. __________ costs are directly proportional to the level of output.
(a) Fixed (b) Variable
(c) Total (d) All of the above
23.Break-even point is useful for the entrepreneur as it helps in assessing _________.
(a) The minimum level of output to be produced (b) The selling price of the product
(c) The effect of change in quantity of output upon the profits (d) All of the above
24. Minimum number of members to form a public company is __________ .
(a) 7 (b) 5 (c) 2 (d) 3
SECTION-B
25. Which type of business does not enjoy perpetual succession?
(a) Partnership (b) HUF (c) Company (d) Cooperative society
26. Margaret had opened her ‘Exotic Spa Clinic’ in the year 2020. Now she wants to expand and
targets to increase her yearly sales by 24% aiming to increase monthly sales by 2% per month.
Margaret has set------------- target.
(a) Time-bound (b) Specific
(c) Both (a) and (b) (d) None of the above
27. Mr. Rakesh wanted to manufacture an energy efficient AC. He looked into various options and
finally narrowed down to one option. He understands that his idea would have to follow a process.
Identify the process.
(a) Idea germination (b) Creativity
(c) Idea generation (d) Idea fields
28. Transporting apples from the Orchid of Kashmir to the markets of Delhi is an example of -------.
(a) Form utility (b) Place utility
(c) Time utility (d) None of these
29. Which amongst the following is/are the demerits of sole proprietorship?
i. Limited life of business concern
ii. Quick-decision making
iii. Limited scope for expansion
iv. Ease of Formation
(a) i , ii (b) iii , iv (c) i, iii (d) ii , iv
30. A partnership firm comes to an end on the
(a) Retirement of a partner (b) Death of a partner
(c) Insolvency of a partner (d) Any of the above
31. Entrepreneurs should take advantage of social networking tools like social network sites, i.e.
Facebook, Instagram , twitter etc. to identify new trends. This is an example of _________ .
(a) Read trends (b) Talk trends
(c) Think trends (d) Watch trends
32. Abhishek and Akash were partners in a transport business. With a view to expand, they thought of
changing the form of business where their liability will be limited. To keep control over the business,
they decided to sell shares to friends, families and some employees. Which form of business did they
adopt?
(a) Public limited company (b) Partnership
(c) Private limited company (d) Cooperative organization
33 .Ranjan Lal Gupta is the Karta of an HUF. He has _________ .
(a) Unlimited liability (b) Limited liability
(c) Implied authority (d) Both (a) and (c)
34. Raghav sells an air purifier for Rs.2,100. If the purchase price of the product is 80% of its selling
price, the profit earned by Raghav is _________ .
(a) Rs.1,700
(b) Rs.420
(c) Rs.1,680
(d) Rs.400
35. Growing flowers and selling to floral decorators (people demand flowers for decoration and gift
purpose in every occasion) is an example of the following source of idea field _______ .
(a) Service sector ideas (b) Trading related ideas
(c) Natural sources (d) Market driven ideas
36. All of the following characteristics of sole proprietorship except one ________ .
(a) There is a single owner (b) Profits are shared
(c) Liability is unlimited (d) They are the most popular type of business
37. _________ is a process of perceiving the needs and problems of people and society and arriving at
creative solutions, initially converting these solutions into an opportunity and then into an enterprise.
(a) Business opportunity (b) Opportunity assessment
(c) Sensing entrepreneurial opportunity (d) None of the these
38.Unit of Sale for a property /Estate dealer is __________ .
(a) Per floor (b) Per Building/flat
(c) Per square feet (d) Per Value of the land
39. ___________ is a process of creating, developing and communicating ideas which are abstract,
concrete or visual.
(a) Idea generation (b) Idea fields
(c) Idea germination (d) All of the above
40. Identify the correct matching from the following:

1. First mover advantages a. To protect the basic business plan

2. Cope with rapid changes b. Identifying the business opportunity

3. Formulation of strategies c. Capturing more market share

4. Better performance d. Technological improvement

(a) 1-a, 2-b, 3-c, 4-d

(b) 1-c, 2-a, 3-b, 4-d
(c) 1-b, 2-d, 3-a, 4-c
(d) 1-d, 2-b, 3-a, 4-c
41. Market research gives information regarding :
(a) Market needs (b) Market size
(c) Level of competition (d) All of these
42. Internal analysis of SWOT consists of ________ .
(a) Opportunity and Threat (b) Threat and Strength
(c) Weakness and opportunity (d) Strength and weakness
43. Enterprise provides goods and services, creates jobs, but neither contributes to national income nor
contributes to overall economic development.
(a) This statement is not true (b) This statement is completely false
(c) This statement is not related to enterprise (d) This statement is partially true and partially
false
44. ‘If you don’t adapt, you don’t endure’, is the core idea behind ______________.
(a) Strategic positioning (b) Market assessment
(c) Sensing opportunity (d) Environment scanning
45. Identify the suitable form of business organizations from the following information _________ .

1. Single profit sharing a. Joint stock company

2. Sharing of risk and losses b. Sole proprietorship

3. Service motive c. Partnership

4. Easy transferability of share d. Cooperative society

(a) 1- d, 2-c, 3-b, 4-a (b) 1-c, 2-d, 3-b, 4-a

(c) 1-b, 2-c, 3-d, 4-a (d) 1-a, 2-b, 3-c, 4-d
46. Sony has sold its products to its customers on 31.03.2020. The product details are given below.
Calculate the average amount of product sold per customer.

No of customer Per customer billed amount in Rs

45 10,000

50 8000

50 20000

35 7500

20 9000

(a) 45000 (b) 45850 (c) 49000 (d) 41950

47. Sheela textiles produces infant garments and also girls wear. Fixed cost expenses were 75000.

Infants wear Girls wear

Selling cost / unit in Rs 210 360

Variable cost in Rs 140 190

Sales mix ratio 40 % 60%

(a) 150 (b) 120 (c) 130 (d) 110

48. TR=TC ___________.
(a) Contribution per unit (b) Gross profit margin
(c) Unit Price (d) Break-even point

SECTION-C

49. There are two businessmen with the same qualification or same product but the first one has an
edge over the other businessmen due to his skill and ability to think, imagine and do things differently.
Out of the following, identify the quality of the entrepreneur discussed here:
(a) Creativity (b) Honesty
(c) Leadership (d) Reliability
50. Calculate weighted average contribution margin per unit.

Product A B C

Sales price per unit 15 22 35

Variable cost per 8 10 18

unit

Sales mix ratio 20 % 20 % 60 %

Total fixed cost 50000

(a) 12 (b) 14.1 (c) 14 (d) 15

51. ____________ involves demand analysis, supply analysis, costing and pricing and determining the
nature of innovations required.
(a) Opportunity assessment (b) Market assessment
(c) Both (a) and (b) (d) None of these
52. One of the most striking behavioral characteristics of an entrepreneur is _______ .
(a) Creativity (b) Innovator
(c) Inventor (d) All of the above
53. Objective of __________is to plan the work in a manner that each step can be taken in the right
place, right degree, right time and more efficiently.
(a) Organizational plan (b) Production plan
(c) Operational plan (d) All of the above
54. In a subsidiary of Sugar Mill, cane juice is converted into organic jaggery. The mill owner wants to
know whether to continue with this subsidiary or close it down. On an average the monthly output of
the subsidiary is 2,500 kg, Sales price/kg is Rs.100, Variable cost/kg is Rs.30, Fixed expenses is
Rs.70,000. The break-even point in units will be?
(a) 1,000 units (b) 1,500 units (c) 10,000 units (d) 7,500 units
55. One of the elements of Operational plan means issuing necessary orders, instructions and
guidelines is known as ____________.
(a) Dispatching (b) Routing
(c) Follow up (d) scheduling
56. In the creative process, ________ is also called the validation or testing phase.
(a) Preparation (b) Incubation
(c) Illumination (d) Verification
57. ____________ is a corporate body set up under a special act of Parliament or State Legislature.
(a) Government Company (b) Statutory corporation
(c) Departmental undertakings (d) Co-operative society
58. The business environment is specific to the company’s internal strength and weakness, which may
be the outcome of its mission and objectives called as __________ .
(a) Internal business environment (b) External business environment
(c) Macro Environment (d) Micro Environment
59. While selecting an opportunity, an entrepreneur has to ensure
(a) Good market for the product (b) Suitable rate of return
(c) Both (a) and (b) (d) None of these
60. ‘Suppliers’ constitute a part of
(a) Internal environment (b) Micro environment
(c) Macro environment (d) All of the above