Entrepreneurship Management

Entrepreneurship Management

Assignment - A

1. What do you mean by entrepreneur and entrepreneurship?

2. Name the sources of finance available to entrepreneur

3. Write a note on venture capital.

4. Discuss the methods of price determination

5. What do you mean by e-business? Discuss the implication of e-business on entrepreneur.

Assignment - B

6. Explain the problems faced by entrepreneurship.

7. Discuss the stages of entrepreneurial project implementation.

8. What do you mean by vendor development? Discuss the vendor selection decision factors?

Case Study

Zimmerman Sales and Service

Elmer Zimmerman decided to go into business for himself because he wanted to be his own boss. At age 19, therefore, he began buying out a financially insecure farm automation business because he wanted the challenge of turning that business into a profit-making enterprise.

Elmer's parents owned a dairy farm where he enjoyed working for many years. His high school agri-business instructor at Mahoning County Joint Vocational School, however, would not allow Elmer to work on the home farm because it was not large enough to support another family. Therefore Elmer, at age 17, began to work at a business that sold, serviced, and installed farm automation equipment such as milking equipment, computer feeders, feed and barn cleaning systems, augurs, and so forth. It was this business that Elmer later purchased.

Buying out an existing business had its pluses and minuses. On the plus side, Elmer had an existing client list with which to work. On the minus side, Elmer started out with $20,000 worth of outstanding debts that were his as part of the purchase agreement. Even though he started out in debt, Elmer believed that the purchase was a good one because the business was located in a good dairy district of Ohio. Elmer felt, after working in the business for two years, that if he offered the farmers a good product at a good price and performed good service, sales would follow.

Elmer was right. He was able to make arrangements to pay off the $20,000 in debt by making regular payments with little or no interest. Annual sales at the close of business at year's end had tripled since he took over the business.

Elmer employed two full-time and two part-time persons. In addition to his employees, Elmer uses the services of a professional accountant. Zimmerman Sales and Services began as a sole proprietorship because there are fewer state and federal regulations and less "red tape". However, the accountant pointed out that since Elmer's business has increased over 300 percent in two years, the tax structure and liability needs make it advantageous to incorporate.

In addition to Elmer's high school background, which gave him a good overall background in farm operations (an important factor in dealing with clients), Elmer received an associate degree from an Agriculture Technical Institute

Questions for Discussion:

Q1. What made Zimmerman to get into business and why did he purchase loss making business?

Q2. What are the plusses and minuses of buying existing loss making business given in the case?

Q3. Why did he decide to start his own business rather than continuing with existing family business?

Q4. What factors made him to be successful in his business?

Assignment - C

Q.1. Small-scale industries can be classified into      types.

A. 7 main                                                         B. 5 main

C. 4 main                                                         D. 3 main

Q.2. IPR stands for

A. Indian production resolution          B. None of the above

C. Indian production revolution         D. Industrial Policy Resolution

Q.3. ___________  an important problem     faced by small-scale industries in the country.

A. Problem of raw material                            B. Problem of Marketing

C. Problem of Finance                                    D. Problem of under utilization

Q.4. --------------------  is the process of identifying opportunities for new business ventures

A. Project identification                      B. Arranging term finance

C. Selection of the product                 D. Recruitment of staff

Q.5. The systematic development of a project idea for the eventual purpose of

arriving at an investment decision is termed as

A. Project Feasibility                                                   B. Project Profiles

C. Project Formulation                                    D. Project Process

Q.6. ------------------  is the method, a sample market is surveyed before the new product is offered for sale.

A. Sales experience method                           B. Sample survey

C. Vicarious method                                       D. Complete enumeration survey

Q.7. "As those that do not change with increase or decrease in production is defined as

A. Variable cost                                               B. Break even analysis

C. Fixed cost                                                    D. None of these

Q.8.--------------------- is a blue print giving the complete framework and structure of the venture that is taken for implementation.

A. Project report                                 B. Selection of the product

C. Cost analysis                                   D. Selection of site

Q.9. ---------------  is an     artificial being invisible,  intangible and existing only in contemplation of law.

A. Product                                            B. Service

C. Corporation                                    D. All of these

Q.10. Which of the following are not the main features of partnership form of business ownership/organization?

A. Profit and loss sharing                    B. Restrictions of transfer of share

C. Contractual relationship                 D. None of these

Q.11. the decision taken by the entrepreneur well in advance regarding the future financial aspects of his/her enterprise is called

A. Financial analysis                                        B. Financial statement

C. Financial planning                                      D. None of these

Q.12.The_____________ form of organization is based on the philosophy of self-
help and mutual help

A. Cooperation                                                B. Co-operative

C. Organization                                               D. Restrictions

Q.13. A share holder is paid dividend, while a debenture holder is paid------------------

A. Bonus                                              C. Increment

C. Interest                                           D. None of these

Q.14.The____________ of companies is also determined by the competitiveness found among them.

A. Borrowed funds                                          B. Capital structure

C. Debt capital                                                D. Owner's capital

Q.15   U.No.5; P.No.92; is a process of assigning a distinct name to the product so as to differentiate it from the competitive products of similar nature.
A. Trade mark                                                             B. Branding

C. Brand mark                                                             D. None of these

Q.16._______________ is one of the important segments of economic growth.

A. Mobilizing                                                   B. Entrepreneur

C. Entrepreneurial                                          D. None of these

Q.17._________________ is a mental attitude to undertake expected risks during the endeavor to realize objectives.

A. Entrepreneurship                                        B. Organisation

C. Mobilising                                                   D. Management

Q. 18.The evolutions of the concept of entrepreneur are broadly classified into three groups Viz.,

A.   Risk-bearer, organizer & innovator   B. Risk-bearer, organize & inventor

B.   Risk-bearer, inventor & organizer     D. None of these

Q. 19.which are two Managerial Control of the Entrepreneurial Functions?

A.  Managing Finance & Managing factory

B.  Managing Competition & Managing Finance

C.  Managing Finance & Managing Production

D.   Managing Production & Managing Competition

Q.20.________________ and____________ are the qualities apparently found in women entrepreneurs.

A. Non-Intelligence & Un-patience   B. Intelligence & Unmerciful approach

C. Intelligence & Patience                      D. None of these

Q.21._____________ and______________ are the two sources of the Finance.

A. Shot-term & Long-term                              B. Short-term & External

C. Internal & External                                     D. Long-term & Internal

Q.22.____________ entrepreneurs are unwilling to make any change in the production system, even if the system causes losses repeatedly.

A. Initiative                                                      B. Innovative

C. Drone                                                          D. Fabian

Q.23.A____________ is the servant in the enterprise owned by the entrepreneur.

A. Entrepreneur                                              B. Manager

C. Employee                                                    D. None of these

Q.24.Adam Smith described ----------------  as a person who only provides capital without taking active part in the leading role in enterprise.

A. Manager                                         B. Owner

C. Entrepreneur                            D. Director

Q.25.ln the words of Schumpeter--------------- is a creative activity.

A. Management                                              B. Directing

C. Leading                                                       D. Entrepreneurship

Q.26.Schumpeter   argues   that,   the   basic  function   of   an   entrepreneur   is

A. challenging                                                 B. Developing

C. Determination                                            D. innovation

Q.27. The section of any business plan demonstrates that you know your customers.

A. market analysis                                           B. Customer analysis

C. Vendor analysis                                          D. None of these

Q.28.---------------------------------- estimates of product or service sales, based on the market  analysis  and   assumptions  about  the  effectiveness  of the  pricing, promotion, and distribution strategies.

A. Demand forecast                                        B. Promotion analysis

C. Pricing strategy                                          D. None of these

Q.29.   ------------- has  a  significant  influence to  price  determination  of market oriented companies.

A. Competition                                                B. Demand

C. Pricing strategy                                          D. None of these

Q.30. While demand and competition are external factor, the-------------- are internal.

A. Customers                                                   B. Costs

C. Competition                                                D. None of these

Q.31.--------------- is one of the popular techniques of strategic sourcing, which improves the value we receive from suppliers.

A. Vendor selection                                         B. Vendor management

C. Vendor development                                  D. None of these

Q.32.-------------- is the branch of logistics that deals with the tangible components of a supply chain.

A. Materials management                              B. Vendor management

C. Vendor development                                  D. None of these

Q. 33. The two most important factors to consider in a make-or-buy decision are cost and the availability of      .

A. Production capacity                                    B. Working capital

C. Manpower                                                  D. None of these

Q.34.----------------------- is a carefully planned and organized effort to accomplish a specific and usually one-time objective,

A. Vendor selection                                         B. Marketing

C. project management                                  D. None of these

Q.35. Someone who improves an existing business can be called
A. An intrapreneur                                          B. A professional

C. A co-worker                                                D. A changeling

Q36. Where there is no legal separation between the assets and liabilities of a business, and the assets and liabilities of an individual, the business is
A. A sole trader                                                           B. A limited company

C. A cooperative                                                          D. A partnership

Q.37. One of the key legal documents required in the formation of a limited company is

A. A PAYE statement                                                    B. The articles of registration

C. A memorandum of association                                D Registration of corporation

Q38. Acquiring the use of equipment such as machinery without owning it, is known as:

A. Leasing       B. Hire purchase

C. Factoring                                                                 D. Acquisition

Q39. A cash flow forecast will form part of which section of the business plan
A. Operations                                                  B. Marketing

C. Finance                                                       D. Executive summary

Q40. A key aspect of the financial section of the business plan is

A. A statement of management skills      B. A realistic sales forecast
C. Production capacity                                    D. A description of competitors