CBSE Class 12 Entrepreneurship Sample Paper 2023

Entrepreneurship

Section A

1 Given below are the factors necessary for developing a successful idea.
Identify the correct combinations from the given options.
a. Skills and Knowledge
b. Trends and demand
c. Skills, Knowledge and competencies
d. Trends, demand and change

Answer : C

2 ‘Polymer Ltd’ decided to diversify into manufacturing pipes and plastic household products apart from their water tanks business. Their finance and marketing department decided to adopt any of the two pricing strategies –
i. adding a certain percentage of profit to the cost of production
ii. selling at a lesser amount so as to capture a huge market. They put forward their funding strategy to the CEO.
The suggested pricing strategies are:
1. Cost-plus pricing
2. Skimming pricing
3. Penetration pricing
4. Competitive pricing
a. 1,2
b. 2,3
c. 3,4
d. 1,3

Answer : D

3 Which amongst the following values would help an entrepreneur to determine the Return on Investment?
1. Net Profit
2. Gross Profit
3. Inventory carrying cost per unit.
4. Total Capital Invested
5. Weighted average contribution
a. 2,3,5
b. 1,4
c. 1,2,3
d. 2,3

Answer : B

4 In the year 2012, the social media application “Chowpal” acquired “Socialite”
at a purchase value of $1 billion. Both the entities operated in the social media industry and offered similar products as part of their photo-sharing services.
However, Chowpal intended to further bolster its market position in the social media space, and the acquisition of Socialite exactly fitted in its scheme of the plan. The merger eventually helped Chowpal in increasing its market share, eliminating competition, and gaining access to a wider audience. Identify the type of merger:
a. Vertical merger
b. Horizontal merger
c. Market extension merger
d. Product extension merger

Answer : B

5 Ashwin was working as Director Finance in Ambur Metal Works. Managing Director of the Company Kailash asked Ashwin to draft a proforma investment decision plan enlisting the funds which should be invested in different assets so that the company can get the highest possible returns.
From the following identify the reason(s) that would help Ambur Metal Works.
i. It will help the company to understand the total amount of funds required.
ii. It will also help the company to assess the situation as to whether they have excess or inadequate funds.
iii. It helps the company to understand the various sources of funds
iv. It helps the company to reflect the position of the business at the end of every year
a. i only
b. i and ii only
c. i and iii only
d. i, ii, and iii only

Answer : B

6 Mayank, a small entrepreneur, is manufacturing LED lamps with the brand name 'Led-amps`". These lamps are in great demand. He finds that the cost of production per unit of the lamp is ₹ 800 and he can sell the same at ₹1000 per lamp. The competitors in the market are selling this type of lamp at the rate of 1200. Mayank's objective is not to earn profit in the short-run but to capture the largest market share. His expectation is that the customers will be attracted towards the new brand because of the lower price.
Identify the method of pricing adopted by Mayank to capture the substantial
portion of the market.
a. Cost plus Pricing
b. Penetration Pricing
c. Skimming Pricing
d. Variable pricing

Answer : B

7 Given below are information obtained from the balance sheet of PQR ltd.,
What will be the gross working capital for PQR ltd. for the year ending 31st March 2022?
Assets:
(in Rupees)
i. Cash- 60,000
ii. Stock- 50,000
iii. Trade Debtors- 65,000
iv. Short term investment- 15,000
Liabilities:
(in Rupees)
i. Short term loans- 25,000
ii. Trade creditors- 5,000
iii. Outstanding expenses- 10,000
a. 40,000
b. 1,90,000
c. 1,50,000
d. 2,30,000

Answer : B

8 The entrepreneurs have an option to brand their product alpha-numerically,
as it signifies:
a. Chemical characteristics
b. Physical characteristics
c. Neutral characteristics
d. Mathematical characteristics

Answer : B

9 A grocery owner has an equity stake of ₹ 40,000/- in the business. He has borrowed ₹ 60,000/- at the interest rate of 10% per annum. He made a net profit of ₹ 20,000/- in one year.
What will be the Return on Equity for the grocery owner?
a. 20%
b. 30%
c. 35%
d. 50%

Answer : D

10 Assertion(A): Customers are part of the micro environment.
Reason(R): Micro environment does not operate in isolation and is one of the levels of business environment.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
b. Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.

Answer : B

11 Who plays a very vital role as a financial intermediary?
a. Primary Market
b. Capital Market
c. Stock Market
d. Securities and Exchange Board of India.

Answer : B