SRINIVASAN ENGINEERING COLLEGE

BA9264 - ENTREPRENEURSHIP DEVELOPMENT DEPARTMENT OF MBA QUESTION BANK SEM/YEAR: III/II UNIT I- ENTREPRENEURAL COMPETENCE 1. What is the result of applying knowledge, skills, competency and creativity strategically for market-orientation ? It helps the entrepreneur to understand the customers and their needs. Market orientation helps the entrepreneur in producing goods and services that would not only meet the current demands but the anticipated demands of the future too. 2. Name the two factors that are involved in sensing opportunities. a! "bility to perceive and preserve basic ideas. b! "bility to harness different resources of knowledge and information. 3. #ist the two important considerations for the purchase of materials. Important $onsideration for the purchase of materials are%a! &ight 'uality b! &ight (ime c! &ight )rice d! &ight 'uantity e! &ight *ource 4. " company uses +,, units of an item per day and the order lead time is - days. What should be the level of inventory when a new order is to be placed ? &eorder point . usage rate / lead time &eorder point . +,, / - .0-,, unit 5. "vinash wants to open a tailoring shop in a colony. Name the suitable 1pricing method2 for providing his services. Market rate method 6. Why does an entrepreneur need feasibility plan ? "n entrepreneur needs a feasibility plan % a! (o assess the periodic re3uirement of material and human c! (o e5ecute the pro4ect in an organi6ed and systematic manner resource and in raising them b! (o give a correct position of the pro4ect to the financiers to the method and to customers.

7. Why is a technical feasibility study essential ? It indicates the manufacturing process, product designs and drawings. (he details of machinery re3uired and e3uipment raw materials and man power re3uired. 8. What is meant by 1Innovation2 ? Innovation is the process of entrepreneurship. It involves the implementation and commercial application. 7. 85plain 1$are to 8cology and 8nvironment2 as a social responsibility of an entrepreneur. 8ntrepreneurs should take the responsibility to keep pollution under control, to provide devices to prevent polluting materials from affecting public health. (hey should not indulge in any activity that vitiate or degrades environment UNIT II- ENTREPRENEURAL ENVIRONMENT 1. "n entrepreneur decides to sell his woollen garments in the month of 9ebruary on discount. Name and e5plain the environmental factor which prompted him to take this decision. Ec ! "#c F$c% &: 8conomic factor consists of variables like supply and demand for the product. :etails of consumer trends, economic preferences, costing, discounting etc are all economic decisions. 2. 85plain any three sources from which basic ideas emerge. a! )roblems b! $hange c! Inventions d! $ompetition +. 85plain the first three steps involved in the process of investigation of a feasible product. 9irst three *teps% a! )roduct or service identification b! "pplication and use c! #evel of operation. ;. *tate any three ob4ectives of preparing a )ro4ect &eport. (o identify the re3uirement of the resources b! (o assess the scope and range of the success of the enterprise. c! (o obtain opinion of e5perts from various fields translation of a useful idea into an application which has commercial value. It involves analytical planning, organi6ing resources,

d! (o enable licensing of the enterprise by the concerned authorities. e! 9or financial appraisal of the pro4ect by financial institutions, banks etc. f! (o find the critical components of the pro4ect idea. -. 85plain the uses of a )ro4ect &eport for% - an entrepreneur - government - financial institutions a! "n entrepreneur < it works as a blue print that helps in e5plaining his idea to financers, market customer=*W>( analysis. b! ?overnment- helps in e5ecuting statutory and legal re3uirements, land ta5, sales ta5, commercial ta5, and transport license and pollution control certificate have all to be obtained on the basis of pro4ect report. c! 9inancial institutions < @efore e5tending financial assistance, the bankers would like to know the feasibility and profitability of the enterprise. (hey would also like to know whether the entrepreneurs will be able to generate the necessary funds periodically to repay the loan together with interest. A. #ist any si5 problems faced by first generation entrepreneurs. a! $apital b! #ack of goodwill c! #ack of 85perience d! #ack of risk taking ability e! No market standing f! #ack of orientation to problem solving g! )oor productivity h! $ompetition B. 85plain the term 1)ersonal 9inancing2. (he entrepreneur always has to make the initial investment as capital. 9or this purpose he arranges finance from his personal resources such as his personal cash, borrows from members of the family, converts his assets into cash or uses them in business e.g. car, telephone, computer etc!. *uch personal sources of finance are part of personal financing. C. *tate any two factors which affect the formulation of a financial plan. a! >b4ective b! *olvency and #i3uidity c! >ptimum structure d! *implicity

UNIT III - BUSINESS PLAN PREPARATION 1. 85plain any four decisions which have to be taken into considerations under the head2Material &esources2. 9our :ecisions are% a! *i6e and location b! Manufacturing process c! Identifying and purchasing machinery d! >btaining electricity power D. Name and e5plain the concept which states that a particular volume of production of a firm neither makes a profit nor a loss. @8) is the volume of production at which a firm neither makes a profit nor a loss. "t the @8) revenue e3uals the total costs 3. *tate any four advantages of2Inventory $ontrol2. 9our "dvantages of inventory control are% a! (o know whether materials are readily available for production=use. b! (o e5amine 3uantity discounts for large orders. c! (o ensure prompt delivery of materials to customers. d! (o stabili6e the fluctuation of demands. ;. :ifferentiate between 1)reference *hares2 and 183uity *hares2 on the basis of% ; a! Eoting &ight b! )ayment of :ividend c! &epayment of $apital d! &ate of :ividend B$'#' .$/ V %#!0 R#0*% .3/ P$-"(!% ) 4#2#4(!4 .c/ R(5$-"(!% ) c$5#%$6 .4/ R$%( ) 4#2#4(!4 P&()(&(!c( S*$&(' D ! % (!1 0#2(! 5&()(&(!c( 2(& (+,#%0#2(! 5&()(&(!c( 2(& (+,#%- '*$&( * 64(&' #' )#9(4 E+,#%- S*$&(' E!1 - 2 %#!0 &#0*%' (+,#%- 5&()(&(!c( '*$&(' * 64(&' $&( 5$#4 5$#4 !6- $% %*( %#"( ) 7#!4#!0 ,58 2$&#(' -($& % -($&

4. *tate the two key behavioural characteristics of an entrepreneur. (he two key behavioral characteristics of an entrepreneurs are%-

a! )erceive an opportunity b! $reativity to innovate and build something of market value. 6. Name the environmental factor which relates to welfare and safety of employees. #egal environment 7. #ist any two marketing functions under the head 1)hysical supply2. (he two marketing functions under the head physical supply are% a! (ransportation b! *torage c! Warehousing 8. Name the products which are sold to other firms for their production purposes. Industrial products E9$"56(- .A!- !(/% Machines, e3uipments, raw materials, packaging and labeling products etc. 9. 9or which type of products can the manufacturer initially fi5 a very high price? When the product is an innovative one and is received by the market well. )ricing method which is used for these types of products is < skimming price method. UNIT IV - LAUNCHING OF SMALL BUSINESS 1. Why is a )ro4ect report re3uired ? 85plain briefly. " pro4ect is re3uired to clarify for the entrepreneur as what he is doing, why he is doing it and how he will do a particular work. It will enlighten him during the progress of the venture and facilitate him to moderate and harmoni6e with various components of the scheme. 2. 85plain 1Market *urvey and "nalysis2 as a feature of a feasibility plan. " market survey analysis helps the entrepreneurs to know the characteristics of the market. It will make him aware whether the production of a product is viable in the market or not, what are the customer needs and attributes, 3uantity needed, level of consumption etc. 3. :efine a )lanning paradigm. )lanning paradigm- it is a general pattern which suggests how to progress from an abstract idea to achieving sustained stability, growth and value added services. 4. Why is inventory control essential for an entrepreneur ? ?ive any two reasons. Inventory control is essential because% a! (o know whether materials are readily available for production= use. b! (o e5amine 3uantity discounts for large orders. c! (o ensure prompt delivery of materials to consumers d! (o stabili6e the fluctuations of demands

e! (o take care of holding cost and carrying cost of inventory. 5. 6. Name the idea field which deals with providing a new techni3ue of teaching. 85plain in brief any three types of resources that have to be considered by an entrepreneur while setting up a small-scale enterprise. &esources are % a! Fuman resources men! b! Material resource material! c! 9inancial resources money! 7. 85plain 1ability to perceive and preserve basic ideas2 as a factor in the process of sensing opportunities. G"bility to perceive and preserve basic ideasH. 8very idea that we get is not an opportunity. "n opportunity is that idea which is based on what consumers want. 8. #ist the three basic 3ualities that aH good entrepreneur should have. (he basic 3ualities of a good entrepreneur are%a! creativity b! Innovation c! )ropensity to risk taking d! (aking initiative e! $oncern for attaining standards of e5cellence in whatever they undertake. f! >rientation to problem solving UNIT V - MANAGEMENT OF SMALL BUSINESS 1. 85plain with the help of an e5ample, how does an entrepreneur assess the re3uirements of working capital. Working capital is the capital re3uired by business to carry out day to day activities. It is generally calculated for full operating cycle. 2. #ist any si5 factors that should be kept in mind by an entrepreneur as a part of production plan. *i5 factors that should be kept in mind by an entrepreneur as a part of production plan are % a! Machines, tools and e3uipments re3uired. b! $ost, type and supply of raw materials c! Work schedules. Market driven or demand driven ideas

d! 'uality control = assurance e! Maintenance f! $apacity utili6ation g! *killed and unskilled labour re3uirements 3. 85plain 1:istribution Mi52 as an element of 1Marketing Mi52. :istribution Mi5%- it is also known as place mi5. It is concerned with movement of goods from the place of production to the place of consumption, at right time. It involves % a! )hysical distribution - storage and transportation b! $hannels of distribution < whole sellers and retailers 4. 85plain the role of 1financial planningH in 1financial management2. It matches the needs of the enterprise for short term as well as long term purposes. b! It helps in estimating the amount of capital to be raised so that an enterprise may be protected from the adverse conse3uences of over capitali6ation and under capitali6ation 5. 85plain 1:emand :riven Ideas2 and 1(rading &elated Ideas2 as idea fields. D("$!4 4&#2(! #4($': (o carry out a market research is an important method of generating ideas. (his study yields valuable data about trends of supply, demand, consumers preferences etc. sometimes information is also available with association and organi6ations. T&$4#!0 &(6$%(4 #4($': trade in simple terms is buying goods and services and selling them to consumer at a profit. >ne big advantage that trading has over other types of business is that it is easier to launch and less risky. Fowever necessary for a prospective trader to be aware of the trends in an economy. 6. Name and e5plain the concept which states that at a particular volume of production a firm neither makes a profit nor a loss. @8) is the volume of production at which a firm neither makes a profit nor a loss. "t the @8) revenue e3uals that total costs. 7. *tate any four disadvantages of issuing e3uity shares. #imitations of issuing e3uity shares% a! 9loatation cost is higher than other sources finance b! $ompany can not take advantages of trading on e3uity, if it is depending e5clusively on e3uity shares. c! :anger of over capitali6ation. 8. 85plain any two growth sustaining activities of an enterprise. ?rowth sustaining activities of an enterprises any two! a! Moderni6ation

b! 85pansion c! :iversification d! *ubstitution e! 9ranchising 9. 85plain any si5 steps which help in identifying a feasible product or process. *teps which help in identifying a feasible product on process % a! )roduct or service identification b! "pplication and use c! #evel of operation d! $ost e! $ompetition f! (echnical comple5ity g! "nnual turnover on profit margin OR 85plain the practical steps involved in setting up a *mall-*cale 8nterprise at *tage-II. (he practical steps involved in setting up a small scale enterprise at stage-II are%a! )reparing a pro4ect report. b! >btaining no ob4ection certificate. c! >btaining formal sanction of loan. d! $onstruction of building and installation of machinery. e! :etaining manpower. f! 8stablishing marketing network and application for permanent registration. 10. What is a 1)ro4ect &eport2 ? *tate any four elements of a )ro4ect &eport. (he pro4ect report is basically a business plan. It describes all necessary inputs to the enterprise. It e5plains the mode of utili6ation of resources and also details the strategies for the e5ecution of the pro4ect. It outlines the desired goals. a! :escription of the promoters b! :escription of the enterprise c! 8conomic viability and marketability d! (echnical feasibility OR ?ive the uses of a )ro4ect &eport i! 9or the entrepreneurs, ii! 9or financial institutions, and iii! 9or the ?overnment. Ises of the pro4ect report for

a! "n entrepreneur < it works as a blue print that helps in e5plaining his idea to financers, market customers = *W>( analysis b! ?overnment < helps in e5ecuting statutory and legal re3uirements, land ta5, sales ta5, commercial ta5, and transport license and pollution control certificate have also to be obtained on the basis of pro4ect report. PART B UNIT I 1. What is entrepreneurial mobility? :iscuss the various factors influencing the mobility of entrepreneurs. 2. 85amine how the market feasibility, 9inancial 9easibility and (echnical feasibility studies help in establishing a successful enterprise. 3. "nalyse the role of entrepreneur in economic development of the country 4. What are the incentives available to an entrepreneur? 5. What is the importance of International entrepreneurship UNIT II 1. 2. Fow does e5port help an entrepreneur and how can it be achieved? :escribe barriers for international trade and how can it be overcome?

3. What are the mechanisms available to attract direct foreign investment 4. What is the impact of globalisation and liberalisation on **I units of India. 5. @riefly e5plain the planning commissionJs guidelines for formulating pro4ect report. 6. 85amine the need for Institutional 9inance for small enterprises in India . &eview the performance of various financial institutions in developing small enterprises in India 7. :iscuss in detail the characteristics of a successful entrepreneur. UNIT III 1. 85plain the problems faced by small scale industries in India.K remedial measures that are available . 2. Mention the salient features of New *mall 8nterprises policy 0770 3. What is entrepreneurial mobility? :iscuss the various factors influencing the mobility of entrepreneurs. 4. @ring out the schumpetrJs views on entrepreneur. e5plain the different types of entrepreneurs in the society

5. :iscuss the cultural ,economic,political and personality factors that affect entrepreneurial growth. 6. :efine stress.:iscuss the various stress management techni3ues to overcome work stress UNIT IV 1. :iscuss th nedd and ob4ectives of entrepreneurial development programmes. 2. What are the different ownership structures available to entrepreneurs? :escribe the advantages and disadvantages of different ownership structures. 3. What is a prelimnary pro4ect repot? *tate the advantages of prelimnary pro4ect report.Fow and why do you prepare it? 4. :escribe the nedd for instituional support to small scale industries . What is :I$? 85plain its functions. 5. 85plain about working capital.:iscus the sources and the management of working capital. 6. What are the salient features of new small enterprise policy?Fow is the goverment Js protective policy beneficial for th development of small scall industries? 7. :efine Loint venture .*tate the reasons behind the creation of 4oint venture .:iscuss the partner selection criteria. UNIT V 1. a! :efine the term 8ntrepreneur K Intrapreneur, e5plain the attributes of a successful entrepreneur? b! Illustrate the role of entrepreneurship in Indian 8conomy.

D. Write an essay on the role played by :I$ K *I*I for the development of
entrepreneurship?

+. What do you mean by term business idea, e5plain the ?overnment procedure
involved in it?

;. 85plain the role of $entral ?overnment K *tate ?overnment in promoting

8ntrepreneurship in India?

-. 85plain the prospects of women entrepreneurship in India A. Why do entreprMneurs fail in their venture, according to )eter :rucker B. 8laborate the evolution of the concept of entrepreneur.