CBSE Class 12 Sample Paper 2021 for Entrepreneurship

SAMPLE PAPER
ENTREPRENEURSHIP (066)
CLASS XII
Time 3 Hrs Max Marks: 70

General instructions:
● There is no overall choice, though internal choice is given.
● Read the question carefully before attempting.

Q.1 Sudha started her small-scale business of making Pickles along with few of her 1 mark
neighbors using their free time at home. They named their venture ‘Home Sweet
Home’. They were able to supply the entire district. One of the members
suggested that they should expand and start selling to other states. When she
discussed the same to her husband, he suggested that they have to properly look
into the environment analysing the competitors. He suggested Sudha to

A. formulate policies
B. Tap useful resources
C. Environment scanning
D. Image building

Q.2 Anant and Anandi together took over their family business of furniture. They 1 mark
understood that the present competitors were using online means to sell their
products. They decided on a new idea of providing furniture on a rental basis to
offices and households and to also start making furniture using the traditional
method which caught the attention of the new generation. They opened stores in
various cities and started selling through online mode also. They both are using
the service-related idea field.
Mention whether the idea field identified is true or false.

Q.3 Vikrant was always interested in technology driven products. After finishing his 1 mark
engineering degree, he started working on a new walking stick which will help
blind people. The stick will be Bluetooth and wi-fi enabled which will be
connected through an app on the phone which will guide the blind persons about
the objects in front of their walking path. He has started testing the walking stick
and found that the stakeholders were satisfied and it had a great value to the
customers. Vikrant is in ………... stage of innovation process.

Q.4 Hemant approached his father seeking Rs.5,00,000 for his new venture. He had 1 mark
planned to start a computer assembling unit. Though his father was in a position
to give him the money he still insisted that he should take a loan from the bank
which will make him more responsible. When Hemant approached the bankers,
they asked for a business plan. Hemant was not sure as to who can help him in
preparation of the business plan. Who among the following can prepare the
business plan?

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A. Lawyers
B. Accountants
C. Marketing consultants
D. All of the above

Q.5 Varun along with his friends had a brilliant idea to manufacture an air 1 mark
conditioner which will also act as an air purifier. The idea was new and the
market did not have such a successful product. For starting the unit, they were in
need of huge funds, so they decided to approach Shankar, a successful
businessman and who is also a venture capitalist. However, Shankar said that he
was very busy and if they could pitch their idea within a span of 3 minutes, he
was ready to hear it. Which format of Business plan will Varun and his friends
would have to use?

A. Elevator Pitch
B. A pitch deck with oral narrative
C. A written presentation for external stakeholders
D. An internal operational plan

OR

Ab ltd. was into manufacturing security cameras for household and commercial 1 mark
buildings. Their Research and development team came up with a new idea of
manufacturing drones as security cameras which will give a 360-degree view of
the entire building. They needed huge finance for the same. The company MD
Sharath heard of this group of venture capitalists who are ready to invest in new
ideas. He seeked an appointment with them and started preparation of a business
plan to be presented before them. His plan was to make an informative power
point presentation showing key graphs of financial trends. It was meant to trigger
discussion among the members. Which format of business plan is Sharath using?

A. Elevator Pitch
B. A pitch deck with oral narrative
C. A written presentation for external stakeholders
D. An internal operational plan

Q.6 Mallika was selling vegetables in her cart along with her mother. They were able 1 mark
to earn a profit of around Rs.200 every day. Even though the amount was not
substantial it was sufficient for a decent living. Mallika often noticed that nuclear
families where both husband and wife go to work find it difficult to cook as
cleaning and cutting vegetables took a lot of time, so an entrepreneur she started
gathering information regularly and developed a new product line of selling cut
vegetables in hygienic packaging. Mallika used ……..trend to spot this idea.

Q.7 Vinita, Bhavana, Rani and Nandini are all good friends in the age group of 15-17 1 mark

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years of age. All of them decided together to start a business venture of making
soaps at home using natural ingredients. They decided to name their venture as
‘O&HM’ meaning Organic and Home Made. They spoke about their venture to
their parents and asked them if their business could be registered so that it will
be easy to divide the profits. Vinita suggested that they should register it as a
Partnership firm. Can they form a partnership firm?

A. No, they cannot form a partnership firm since all of them are minors
B. Yes, they can form a partnership firm
C. No, since minimum number of people required to form a partnership is
10
D. None of the above

Q.8 Arvind planned to start a small fast-food joint in his area after finishing his 1 mark
degree in hospitality management. His plan was to combine and use healthy
ingredients like whole wheat flour to make the burger buns. He knew that he had
to start collecting information from different sources which will help him to
identify the right opportunity to start his business. From where will Arvind get
the necessary information?

A. Magazines
B. Shows
C. Family Members
D. All of the above

OR

Victor industries has been one of the leading companies in Mobile phone 1 mark
industry in India. The company decided to launch a new Model AI 1 which will
have inbuilt latest software to encourage hands free use and enhance the
customer experience through 3D photos. They are also looking into ideas to use
ecofriendly recyclable materials for the body of the phone which will cause less
environmental damage. Identify the two factors of PESTEL model from the
above case study.

A. Economic, Social
B. Ecological, Technological
C. Legal, Economic
D. Social, Political

Q.9 1 mark
Which of the following is not a component of Brand?

A. Brand name
B. Brand Mark

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C. Logo
D. Trademark

OR

1 mark
'Maharaja' of Air India is

A. Brand name
B. Brand Mark
C. Brand
D. Trademark

Q.10 1 mark
Advertising is?

A. A paid form of communication
B. Selling products personally
C. A deliberate effort done to establish and maintain mutual understanding
between organization and public
D. It relates to short term incentives

OR

Which of the following are the four rules when planning any advertising 1 mark
activity?

A. Aim
B. Competitors
C. Media
D. All of the above

Q.11 1 mark
‘Umbrella branding’ is?

A. Entrepreneur opts to use a common or successful family name for their
several products.
B. Entrepreneurs choose to utilise their corporate name or logo together with
some brand names of individual products.
C. Entrepreneur uses alpha-numeric names to signify physical characteristics of
the product.
D. Entrepreneur chooses distinct names for each of his offerings.

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Q.12 1 mark
Given below are types of mergers with examples of each. Match them correctly.

Column A- Types of Mergers Column B- Examples

i. Vertical Merger a. A watch manufacturer acquiring a
cement manufacturer

ii. Market Extension merger b. Bank of Madura merged with
ICICI Bank

iii. Conglomerate c. A textile company acquires a
cotton yarn manufacturer

iv. Horizontal Merger d. Hindustan Unilever Company
acquired Lakme, it helped HUL to
enter the cosmetics market

A. i-a ,ii-b ,iii- c ,iv-d

B. i-c ,ii-d ,iii- a ,iv-b

C. i-a ,ii-c ,iii- b ,iv-d

D. i-c ,ii-b ,iii- a ,iv-d

Q.13 What is common among McDonalds, Goli vada pav, Naturals Ice-creams and 1 mark
Ferns-and-petals?

A. All are Multinational corporations working in India.
B. All have adopted franchising as their growth strategy.
C. All have merged with big companies.
D. All of the above

Q.14 Both mergers and acquisitions are enterprise growth strategies but how they 1 mark
come into existence makes them different from each other. Which of the given
statements below justifies the given statement?
A. Merger is always friendly, whereas acquisition is always hostile.
B. Merger may be friendly, whereas acquisition is always hostile.
C. Merger is always depending on synergy, whereas acquisition is never
based on synergy.
D. Merger is consensual, whereas acquisition is forced.

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Q.15 1 mark

Identify the promotion strategy shown in the image above.

A. Below-the line
B. Above -the-line
C. Through-the-line
D. Both Below-the-line and Above-the-line

OR

1 mark

Identify the type of Advertising depicted in the given image.

A. Point of Sale
B. Ambient
C. Outdoors
D. Direct mail

Q.16 Priyam composed a music piece for a song and the lyrics were written by him. 1 mark
He wishes to legally protect his creation. He can get a

A. Patent for lyrics and music piece
B. Copyright for lyrics and music piece
C. Copyright of the lyrics and patent for the music piece
D. Trademark for the complete song.

OR

Vinit innovated a new pen which can read any text when placed on top of a page 1 mark

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or newspaper which definitely helps blind and old people who are unable to
read, He wishes to legally protect his product. He can get a

A. Patent
B. Copyright
C. Trademark
D. Geographical Indication

Q.17 When total current assets exceed total current liabilities, it refers to. 1 mark

A. Gross Working Capital
B. Temporary Working Capital
C. Both A and B
D. Net Working Capital

OR

Gross margin and gross profit are one and the same. Is the given statement 1 mark
‘True’ or ‘False’?

Q.18 Harshdeep is the stock keeper of Neha Textiles Ltd. The company is into 1 mark
converting cotton yarn into fabric and then further computerised printing on the
same to add value to the fabric. He wants to know the ideal quantity of yarn to
be ordered so that the production process does not stop. How can he know the
correct time to place an order?

A. By calculating Break-even point
B. By calculating Re-order point
C. By calculating Economic order quantity
D. By calculating lead time

Q.19 MM ltd. is a renowned name in manufacturing hand puppets for children. Its two 1 mark
most selling varieties are Alphabets and Domestic animals. The fixed expenses
of MM Ltd.in the manufacturing of these two varieties is Rs. 75,000.
Alphabets Domestic Animals

Sales Price/unit (in Rs.) 210 360

Variable cost/ unit (in 140 190
Rs.)

Sales mix % 40 60

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The weighted contribution for the two products will be

A. Rs.70
B. Rs. 170
C. Rs. 130
D. Rs. 102

Q.20 In a subsidiary of Sugar mill in U.P, cane juice is converted into organic jaggery. 1 mark
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- Rs. 100, Variable cost/ kg- Rs.30, Fixed expenses- Rs. 70,000. The
breakeven point in units will be?

A. 1000 units
B. 1500 units
C. 10000 units
D. 7500 units

Q.21 A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 1 mark
2,00,000 and Expenses of Rs. 1,00,000. Return on investment for the firm will
be?

A.50%
B.20%
C.10%
D.30%

OR

A firm has Capital of Rs. 10,00,000 of which Rs. 6,00,000 is debt fund; Sales of 1 mark
Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. Return
on Equity for the firm will be?

A.50%
B.25%
C.150%
D.30%

Q.22 State any two factors while assessing the market 2 marks

OR

Enlist any two uses of problem identification.

Q.23 Enlist two points as to why a private company is more desirable than a public 2 marks
company.

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Q.24 What is a sales strategy? Differentiate between its types. 2 marks

Q.25 2 marks
Give reasons for the following situations in business

1. Operating cycle is shorter in trading business than in manufacturing business.

2. Shelf life has an impact on the inventory.

Q.26 2 marks
Source based question

Source - Entrepreneur magazine - August, 2020

‘A recent survey conducted jointly by FICCI and Indian Angel Network revealed
that 70 percent of startups across the country have been impacted by COVID-19
while as many as 12 per cent have had to halt operations altogether.

These are difficult times that no one was prepared to deal with. The prolonged
lockdown had a massive impact on the startup ecosystem. Given that they rely
largely on a constant flow of capital and investments, which due to the pandemic
came to a complete standstill.

With the ongoing crisis, to keep startups afloat has become quite a challenge.
However, this challenge can be eliminated if entrepreneurs adapt to the current
times, adopt new strategies, and are open to experiments and pivot their business
plans. That’s because the pandemic has not only affected our present but also our
future.’

Keeping in mind this article, state any two things which should be written by
startup companies in their manpower planning component of business plan?

Q.27 You are Ravi and you have planned to start manufacturing a new brand of 3 marks
chocolates aiming at teenagers. Your company ‘Delight’ has already been
manufacturing and selling biscuits since 2010. The success of biscuits has
encouraged you to move ahead into the chocolate industry.
Keeping in mind the steps involved in preparation of the marketing plan draft a
marketing plan explaining the first three steps.

Q.28 Explain any three characteristics of partnership. 3 marks

OR

Explain any three characteristics of sole proprietorship.

Q.29 Break even analysis has a major impact on the business decision making. 3 marks
Comment.

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Q.30 AB Ltd., manufacturing light bulbs decided to start manufacturing of ceiling 4 marks
fans. They formed a sister concern by the name ‘Cool Air Ltd’. The new
company was in need of some investment and for the same they had approached
a bank. They had submitted a business plan to the bank stating all the necessary
details. They had mentioned very clearly in the plan that they will be
manufacturing the blades and have decided to outsource the required motor
parts. The plan spoke about the reason for outsourcing along with the contracts
with subcontractors.
a. Explain the Component of the business plan along with it’s related sub
part
b. The business plan further gave details about the money which will be
invested by the owners and how much they are expecting to borrow.
Explain the component of the business plan along with it’s related sub
part.

OR

This document is valuable to the entrepreneur, potential investors, venture
capitalists, banks, financial institutions, new personnel's suppliers, customers,
advisors and others who are trying to familiarize themselves with the business
venture, its goals, and objectives. State any four reasons for the importance of
this document.

Q.31 Number of people who took their meals and the total billing for each of the 5 4 marks
weeks is in the following table.
Week No. of people taking Average amount
meals billed (in Rs.)

1 120 150

2 60 205

3 70 146

4 80 221

5 90 240

Based on the given information, answer the questions given below:

a. Calculate the Unit Price

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b. If the variable cost is 60% of the sale price, the Gross Margin per Unit of
Sale.

Q. 32 M/S. Ramlal & Sons started manufacturing oximeters which has a great demand 4 marks
in this time of Covid 19’for domestic use and otherwise also it is an equipment
in demand by the medical professionals. While fixing the selling price for the
same Ramlal want to adopt a method where he can just cover the cost and earn a
nominal amount of profit. His sons advised him to fix the price initially at a
higher rate and then reduce the price when the demand has reduced. According
to them this method would help them earn a good profit. He hired an agent,
Satish, who advised him to initially keep the prices low to attract the market and
then he can slowly and gradually increase the price.

In the given context answer the following questions;

a. Identify and explain the method that Ramlal is planning to adopt.

b. Explain the method of pricing suggested by Ramlal’s sons and his agent
respectively?

Q.33 Why is creativity important and explain the creative process? 6 marks

OR

Explain any six characteristics of company

Q.34 6 marks
Evaluate the different options available for an entrepreneur to raise funds from
the primary markets.

Q.35 6 marks
Source based question

Source: Economic Times, January 31, 2020

‘Memes have emerged as a lucrative profession for its creators.

Last week, when Zomato acquired UberEats, competitors took no time to engage
with users through this new-age content marketing tool, which had become an
instant hit when it began life on social media a few years ago.

However, generating memes on Instagram, TikTok and Facebook is now starting
to become an integral part of marketing budgets for brands that want to stay
relevant and topical online. These brands are using popular meme pages such as
Laughing Colours, Confused Atma and Sarcastic Indian across social media.

A consumer brand spends Rs 1,000-50,000 on a meme. A page with a million

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likes charges Rs 1,000-Rs 1,500 for visibility on Facebook and around Rs 3,000
for Instagram, creators said. And, depending on the category of influencers,
TikTok charges between Rs 5,000 and Rs 3 lakh.

Earlier, meme pages used to make money mainly through Google
advertisements, videos or cross promotions. Today, they rack up anywhere
between Rs 10 lakh and Rs 4-6 crore in yearly turnover.

Some brands that have been active with meme marketing include OnePlus,
Truecaller, Dream11, LG and Big Bazaar, apart from big players in the e-
commerce and soft-drinks space.

Brands use memes for promotions, taking a dig at competition, and for product
launches. The demand for memes as a marketing tool increases ahead of festive
seasons and occasions like the Cricket World Cup or Indian Premier League
matches. Usually, a brand engages with meme creators for two-three memes a
week.’

In context of the above article, answer the following questions:

1. Identify and explain the component of marketing mix enumerated in the above
article.

2. Explain in detail the elements of the component of marketing mix identified in
(1) above.

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