(SEM VIII) THEORY EXAMINATION 2021-22 ENTREPRENEURSHIP DEVELOPMENT

SECTION A

(Attempt all questions in brief – 10 × 2 = 20 marks)

(a) Financing

Financing refers to the process of arranging funds or capital required to start, operate, and expand a business enterprise.

(b) Entrepreneurship

Entrepreneurship is the process of identifying business opportunities, taking risks, organizing resources, and creating a new venture to earn profit.

(c) Concept of Large Industries

Large industries are business organizations that operate on a large scale with huge capital investment, advanced technology, large workforce, and high production capacity.

(d) Concept of Small Scale Industries

Small scale industries are enterprises with limited capital investment, small workforce, and localized operations, mainly focused on producing goods or services for local markets.

(e) Accountancy

Accountancy is the systematic recording, classifying, and summarizing of financial transactions to determine the financial position of a business.

(f) Business Ownership

Business ownership refers to the legal structure under which a business is owned and controlled, such as sole proprietorship, partnership, or company.

(g) Social Entrepreneurship

Social entrepreneurship involves starting enterprises that aim to solve social problems while being financially sustainable.

(h) Decision Making

Decision making is the process of selecting the best course of action among available alternatives to achieve organizational goals.

(i) Project Planning and Control

Project planning and control involve organizing activities, allocating resources, scheduling tasks, and monitoring progress to ensure project completion within time and cost limits.

(j) Partnership Laws

Partnership laws govern the formation, operation, rights, duties, and dissolution of partnership firms under legal frameworks.

SECTION B

(Attempt any THREE – 3 × 10 = 30 marks)

2(a) Sales, Income Tax and Workmen Compensation Act

The sales tax is imposed on the sale of goods and services and forms a major source of government revenue.
Income tax is levied on the income earned by individuals and businesses based on prescribed tax slabs.
The Workmen Compensation Act provides compensation to workers for injuries or death caused due to accidents during employment, ensuring social security and employer responsibility.

2(b) Assessment of Viability in Project Identification

Project viability assessment determines whether a proposed project is feasible and profitable. It includes technical feasibility, market viability, financial viability, economic viability, and managerial feasibility. A project is considered viable if it generates adequate returns with acceptable risk.

2(c) Preparation of Balance Sheets and Assessment of Economic Viability

A balance sheet shows the financial position of a business by listing assets, liabilities, and capital.
Economic viability assesses whether the project contributes positively to the economy by generating employment, income, and efficient resource utilization.

2(d) Cost of Capital Approach in Project Planning and Control

Cost of capital represents the minimum return required by investors. In project planning, it is used to evaluate investment decisions, select projects, and control financial performance by comparing expected returns with cost of funds.

2(e) Role of Small Scale Industries in the National Economy

Small scale industries play a vital role by generating employment, promoting regional development, supporting large industries, increasing exports, and contributing to GDP with low capital investment.

SECTION C

3(a) Estimation of Expected Costs in Entrepreneurship Development

Expected cost estimation involves identifying fixed costs, variable costs, operating expenses, raw material costs, labor costs, overheads, and contingency expenses. Accurate cost estimation helps in pricing, budgeting, and profitability analysis.

3(b) Field Study and Role of Information Collection in Project Identification

Field study involves collecting primary data through surveys, interviews, and market observation. Information collection helps entrepreneurs understand customer needs, market demand, competition, and resource availability, leading to better project selection.

4(a) Characteristics and Types of Small Scale Industries

Small scale industries are characterized by low capital investment, labor-intensive production, simple technology, and local market focus.
Types include manufacturing units, service units, ancillary industries, and cottage industries.

4(b) Planning and Production Control in Entrepreneurship Development

Planning determines production targets, resources, and schedules, while production control ensures smooth operations by monitoring production activities, minimizing waste, and maintaining quality standards.

5(a) Role of National and State Agencies for Small Scale Industries

Various agencies such as MSME Development Institutes, SIDBI, NABARD, NSIC, and State Industrial Development Corporations provide financial assistance, training, marketing support, and technical guidance to small scale industries.

5(b) Sales and Income Taxes in Entrepreneurship Development

Sales tax affects product pricing and cash flow, while income tax impacts net profit. Proper tax planning helps entrepreneurs reduce tax burden legally and improve financial stability.

6(a) Preparation of Project Report and Demand Analysis

A project report includes objectives, market analysis, technical details, financial estimates, and implementation plans.
Demand analysis estimates future demand by studying market trends, consumer preferences, and competition.

6(b) Government Policy for Small Scale Industries

Government policies support small scale industries through subsidies, tax benefits, easy credit, infrastructure development, skill training, and protection against large competitors.

7(a) Accounts and Stores Studies in Entrepreneurship Development

Accounts studies help track income, expenses, and profitability, while stores studies manage inventory, storage, and material flow efficiently to reduce costs.

7(b) Control of Financial Flows in Entrepreneurship Development

Financial flow control involves budgeting, cash flow management, cost control, and financial monitoring to ensure liquidity, profitability, and sustainable business growth.