THE INDIAN COMMUNITY SCHOOL, KUWAIT

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1 THE INDIAN COMMUNITY SCHOOL, KUWAIT SERIES : II TERM /FN/ CODE : M 066 TIME ALLOWED : 2 HOURS NAME OF STUDENT : MAX. MARKS : 50 ROLL NO. :.. CLASS/SEC :.. NO. OF PAGES :2 ENTREPRENEURSHIP ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ General instructions: Answers carrying 1 mark may be from one word to one sentence. Answers carrying 2 marks may be between 50 to 100 words. Answers carrying 3 marks may be between 100 to 150 words. Answers carrying 4 marks may be between 150 to 200 words. Answers carrying 6 mark may be 200 and above words. Attempt all questions 1 How does marketing research facilitates quick and correct decision making 2 Manufacturing industries converts raw materials into semi-finished goods and create utility. Which type of utility is created by these industries? Explain with the help of example. 3 Give the formula for computing Break-even Volume. 4 What do you mean by unit cost? 5 What is market testing and market sensing 2Marks 6 Give any two differences between cost and expenses 2Marks 7 Give meaning of startup cost with example? 2Marks 8 Developing the research design and research produce is an important steps in the marketing research process. state thestepsinvolvedin research process 2Marks 9 Explain Business Model and its Features. 3Marks 10 Identify the following items as inflows and outflows. Also give reasons for your choice? Raw Materials, Depreciation Machinery purchased Loan from bank Interest received on investments Profit on sale of assets 11 M/s Madan Male is a company engaged in manufacturing Shirts for Men. The variable cost per shirt: 3Marks 3Marks Cloth per metre Buttons Rs:250 Rs:25

2 StichingRs:30 Total Rs:305 To provide for these cost and also to earn profit the company decided to sell each shirt for Rs:400 I. What is the unit of sale for the company II. Compute unit cost of the company III. Calculate gross profit per unit. 12 Give the differences between Direct tax and Indirect tax(any three) 3Marks 13 Discuss the primary forces that comprise the internal environment of the market(stake 4Marks holder) (Any four) 14 From the following information given below,prepare income statement of Mr.Akber 4Marks Revenue from operations Rs:12,00,000 Expenses: Purchases of stock in trade Rs:7,50,000 Changes in inventory of stock in trade Rs:20,000 Depreciation Expenses Rs:12,000 Other Expenses Rs:25,000 Tax Rate 40% 15 Explain the factors affecting Pricing decision(any six) 16 RehmanPvt Ltd just commenced with the business of Green gardens Explain the auxiliaries required for the smooth functioning of the business. 17 Farhan open a Toys showroom in Delhi. He sold his house for 10, 00,000 and invested this amount in his business, he took a loan from Financial institution 2, 00,000. He planned to get his material from 100/product. He will be paying 80/product as transportation charges. He purchased toys boxes with his branding for 50/product. He spent 50,000 on furniture for showroom. He hired two salesman with salary of 1,000 each per month. He himself will be getting a Salary of 1000 per month as Showroom Manager. He took a place for 5,000/month. Estimated Sales: Month Total sold(quantity) Cash sales(quantity) Credit sales(quantity) Cash sales(rs) 7,50,000 1,100,000 Credit sales(rs) 2,50,000 1,50,000 Prepare a cash flow projection for month1 and month2

3 THE INDIAN COMMUNITY SCHOOL, KUWAIT Mid SemesterExam CODE :M066 TIME ALLOWED :2 HOURS MAX. MARKS :50 NO. OF PAGES : 2 ENTREPRENEURSHIP ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1 2 Ans 3 General instructions: Answers carrying 1 mark may be from one word to one sentence. Answers carrying 2 marks may be between 50 to 100 words. Answers carrying 3 marks may be between 100 to 150 words. Answers carrying 4 marks may be between 150 to 200 words. Answers carrying 6 mark may be 200 and above words. Attempt all questions How does marketing research facilitates quick and correct decision making Accurate and relevant information about the market. Manufacturing industries converts raw materials into semi-finished goods and create utility. Which type of utility is created by these industries? Explain with the help of example. Its create form utility. e.g: making furniture out of timber Give the formula for computing Break-even Volume. Break-even volume= fixed cost/gross margin perunit 4 What do you mean by unit cost? It is a cost incurred by a company to produce, store and sell one unit of sale of a particular product. its relates to variable cost. 5 What is market testing and market sensing 2Marks

4 6 Give any two differences between cost and expenses 2Marks Cost Costs are derived. A cost is a derived value of money consumed to produce a current or future outcome; hence, costs provide management a decision supporting view to improve business economics. Costs are expressed as a value measured in Expenses Expenses are incurred. Technically, an expense is a specific accounting event related to the outflow of cash. Expense simply records the event and is used to understand what happened from an accounting perspective. relationship to a causal volume of consumption. A business pays Rs. 1,20,000/- at the beginning of the year as the insurance premium. This is an expense. Every month Rs. 10,000/- is charged as insurance premium before arriving at the business profitability. This is the cost of insurance per month. 7 Give meaning of startup cost with example? It is a Non recurring cost which an entrepreneur incurred at the time of launching or starting the enterprise. Eg: Expenses on Registration (any other related example) 2Marks 8 Developing the research design and research produce is an important steps in the marketing 2Marks research process. state the Stepsinvolved in research process are: Step 1 Defining the marketing problem to be tackled and identifying the marketing research problem involved in the task. Step 2 Specifying the information requirement, i.e., preparing a list of the needed information Step 3 Developing the research design and research produce i.e., determining whether such

5 information is already available, either in records of the company or in outside sources. Step 4 Information i.e., select the research instrument to be used, select sample type and size. Step 5 Analyzing the information and interpreting it in terms of the problem being tackled. Step 6 Summarize the findings Step 7 Preparing the research report 9 Explain Business Model and its Features. 3Marks 10 Identify the following items as inflows and outflows. Also give reasons for your choice? 3Marks Raw Materials, Depreciation Machinery purchased Loan from bank Interest received on investments Profit on sale of assets Out flows: Raw materials, Machinery purchased (1/2*6=3) Inflows: loan from bank, interest received on investment Neither inflow nor outflow: Depreciation, Profit on sale of asset 11 M/s Vandana Male is a company engaged in manufacturing Shirts for Men. 3Marks The variable cost per shirt: Cloth per metre Buttons Stiching Total Rs:250 Rs:25 Rs:30 Rs:305 To provide for these cost and also to earn profit the company decided to sell each shirt for Rs:400 I. What is the unit of sale for the company

6 II. III. Compute unit cost of the company Calculate gross profit per unit the unit of sale for the company will be per piece unit cost of the company Rs:305 gross profit per unit unit price-unit cost = Give the differences between Direct tax and Indirect tax 3Marks Discuss the primary forces that comprise the internal environment of the market Internal Environment: The internal environment refers to the forces operating in the market that are close or within the organisation, comprising of: Producer / seller Customer Competitors Suppliers Marketing intermediaries(explanation of the points) From the following information given below,prepare income statement of Mr.Akber 4Marks 4Marks Revenue from operations Rs:12,00,000 Expenses: Purchases of stock in trade Changes in inventory of stock in trade Depreciation Expenses Other Expenses Rs:7,50,000 Rs:20,000 Rs:12,000 Rs:25,000 Tax Rate 40% Income statement of Mr.Akber I. Revenue from operations Rs:12,00,000 II. Other income..

7 III. Total Revenue (i+ii) Rs:12,00,000 IV. Expenses: Purchases of stock in trade Changes in inventory of stock in trade Depreciation Expenses Other Expenses Rs:7,50,000 Rs:20,000 Rs:12,000 Rs:25,000 Total expenses Rs:8,07,000 V. Profit before tax(iii-iv) Rs:3,93,000 VI. Tax expenses (1,57,200) VII. Profit for the period(v-vi) Rs:2,35, Explain the factors affecting Pricing decision The following are the factors affecting Pricing decision: (1X6) Pricing objectives Product cost Competition Customers demand and utility Govt. and legal regulations Marketing methods used. 16 (Explanation for the points) Rehman Pvt Ltd just commenced with the business of Green Gardens Explain the auxiliaries required for the smooth functioning of the business. Types of Auxiliaries ot trade: Transportation,banking,insurance,advertiseing,communication,Warehousing (Valid Explanation for the points) (1X6=6)

8 17 Farhan open a Toys showroom in Delhi. He sold his house for 10, 00,000 and invested this amount in his business, he took a loan from Financial institution 2, 00,000. He planned to get his material from 100/product. He will be paying 80/product as transportation charges. He purchased toys boxes with his branding for 50/product. He spent 50,000 on furniture for showroom. He hired two salesman with salary of 1,000 each per month. He himself will be getting a Salary of 1000 per month as Showroom Manager. He took a place for 5,000/month. Estimated Sales: Prepare a cash flow projection. Month Total sold(quantity) Cash sales(quantity) Credit sales(quantity) Cash sales(rs) 7,50,000 1,100,000 Credit sales(rs) 2,50,000 1,50,000 (2x3=6) Farhans Toys shops Month 0 Month 1 Month 2 Cash inflows : Owners equity Loan from institutions Cash sales receipt Credit sales receipt Total inflow(a) Cash outflow: Start up expenses:

9 Assets Raw materials Transportation cost Branding Salary Rent Total outflow(b) Surplus/deficit(a-b) Closing balance