After completing MBA from FMS Delhi, Raveena decided to enter into a startup business. She wants to explore the diary product business after hearing news of adulteration being found in the milk all over Delhi. She does feasibility studies and finds there is a demand for healthy and quality products in the market. She is confused about the options available to her for her startup. Suggest any 6 ways through which she can fiancé it?(3 mark question)
Answers
Explanation:
Q.1 Vidisha and Tanya finished their graduation in law and plan to start their own firm in Delhi. What form of business organization will suit them?
Ans. Partnership form of organization.
Q.2 What is a business opportunity?
Ans. Business opportunity can be described as an economic idea which can be implemented to create a business enterprise and earn profits.
Q.3 What is a ‘Partnership Deed’?
Ans.Partnership is an agreement between persons to carry on a business, entered into either orally or in writing. It is always desirable to have a written agreement so as to avoid misunderstandings and unnecessary litigations in future. When the agreement is in written form, it is called a ‘Partnership Deed’. It must be duly signed by the partners, stamped and registered. Any alteration in one partnership deed can be made with the mutual consent of all the partners.
Q.4 Ramesh wants to start a small restaurant, but he is confused as to what kind of cuisine he should concentrate on selling. State any two ways as to how he can understand the market and accordingly decide his cuisine in relation with the market trends.
Ans. Spotting trends- 1. Read trends; 2. Talk trends; 3. watch trends; 4. think trends.
Q.5 Pranjal has 500 shares of L&T. L&T comes out with a fresh issue of shares and Pranjal received on offer to buy 1 share of L&T for every 5 shares held by her. Which method of floating new issue is indicated in this case.
Ans. Rights Issue
Q.6 Differentiate between ‘above the line’ (ATL) and ‘below the line’ (BTL) promotion strategy. (any four)
Ans.
Basis ‘above the line’ (ATL) ‘below the line’ (BTL)
Target Mass audience Identified small groups
Promotions Establishing brand identity Can lead to an actual sale
Measurability Difficult to measure Easy to measure
Examples print, online, television and cinema advertising Sponsorship, sales promotions, public relations, personal selling, direct marketing
Q.7 What is ‘Excise Duty’? Is it collected by the state government or the central government?
Ans.. It is a tax on manufacture or production of goods. Excise duty on alcohol, alcoholic preparations and narcotic substances is collected by the state government and excise duty on the rest of the goods is collected by the central government.
Q.8 Sandeep had started his business of dairy products in 2013. He wanted to expand his business but did not have the necessary funds. One of his friends suggested that he should approach Mr. Goel, a venture capitalist for further funds. Sandeep approached Mr.Goel with the executive summary and a few key graphs showing financial trendsand key decision making benchmark in the form of slide presentation. Identify and explain the format of business plan referred in the above para