Entrepreneurship & Start-ups (4300021) - Summer 2025 Solution

Question 1(a) [3 marks]

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Differentiate between Entrepreneur and Intrapreneur.

Answer:

Mnemonic: “ERIS vs IRIS” (External Risk Individual Success vs Internal Risk Institutional Success)

Question 1(b) [4 marks]

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Explain 7-M resources for an Entrepreneur.

Answer:

The 7-M resources essential for entrepreneurial success are:

Mnemonic: “My Men Make Money Managing Material Markets”

Question 1(c) [7 marks]

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Describe Step-by-Step procedure for recognition as Start up under Start up India Scheme.

Answer:

Step-by-Step Registration Process:

flowchart TD
    A[Visit startup.india.gov.in] --> B[Create Account]
    B --> C[Fill Application Form]
    C --> D[Upload Required Documents]
    D --> E[Submit Application]
    E --> F[DPIIT Review]
    F --> G[Certificate of Recognition]

Required Documents:

• Certificate of Incorporation: Company registration proof
• Partnership Deed: For LLP entities
• Letter of Support: From incubator/accelerator
• Recommendation Letter: From government body
• Business Plan: Detailed venture description

Key Benefits After Recognition:

• Tax exemptions for 3 years
• Fast-track patent registration
• Government tender preferences

Mnemonic: “DPIIT Gives Startups Amazing Recognition Benefits”

Question 1(c) OR [7 marks]

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Define Micro, Small and Medium Enterprise. Explain the role of MSME in the economic development of the nation.

Answer:

MSME Classification Table:

Role in Economic Development:

• Employment Generation: Creates 45% of total employment
• Export Contribution: Contributes 40% to total exports
• GDP Share: Accounts for 30% of India’s GDP
• Innovation Hub: Promotes grassroots innovation
• Regional Balance: Reduces urban-rural divide

Mnemonic: “MSME Makes Employment, Exports, GDP, Innovation, Regional-balance”

Question 2(a) [3 marks]

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Define Business idea and Enlist its various sources.

Answer:

Business Idea Definition: A concept for starting a business venture that identifies market opportunities and proposes solutions.

Sources of Business Ideas:

• Personal Experience: Own skills and interests
• Market Gaps: Unmet customer needs
• Technology Trends: New technological developments
• Social Problems: Community issues needing solutions
• Franchising: Proven business models

Mnemonic: “Personal Market Technology Social Franchise”

Question 2(b) [4 marks]

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Write short notes on SWOT analysis.

Answer:

SWOT Analysis Components:

Purpose:

• Strategic Planning: Guides business decisions
• Risk Assessment: Identifies potential problems
• Resource Allocation: Optimizes use of assets
• Competitive Analysis: Understands market position

Mnemonic: “Strong Weak Opportunities Threaten”

Question 2(c) [7 marks]

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Explain various stages of Product Life Cycle (PLC).

Answer:

graph LR
    A[Introduction] --> B[Growth]
    B --> C[Maturity]
    C --> D[Decline]

PLC Stages Table:

Key Factors:

• Sales Volume: Changes throughout lifecycle
• Profit Margins: Vary by stage
• Competition Level: Increases over time
• Marketing Focus: Shifts with each stage

Mnemonic: “Introduction Grows Mature Declines”

Question 2(a) OR [3 marks]

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What are the essentials of a Project Report?

Answer:

Essential Components:

• Executive Summary: Project overview and highlights
• Market Analysis: Demand and competition study
• Technical Details: Production process and technology
• Financial Projections: Cost estimates and revenue forecasts
• Risk Assessment: Potential challenges and mitigation

Mnemonic: “Every Market Technical Financial Risk”

Question 2(b) OR [4 marks]

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Enlist the advantages and disadvantages of e-commerce.

Answer:

E-commerce Benefits & Challenges:

Mnemonic: “Global Low Easy Better vs Security Lack Technology Delivery”

Question 2(c) OR [7 marks]

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Explain various steps of questionnaire design for Market Research.

Answer:

Questionnaire Design Process:

flowchart TD
    A[Define Research Objectives] --> B[Determine Information Needed]
    B --> C[Choose Question Types]
    C --> D[Develop Questions]
    D --> E[Organize Question Sequence]
    E --> F[Pretest Questionnaire]
    F --> G[Finalize Design]

Question Design Steps:

• Objective Setting: Clear research goals
• Information Planning: Required data types
• Question Formatting: Open/closed ended
• Language Selection: Simple and clear
• Sequence Planning: Logical flow
• Testing Phase: Pilot study
• Final Review: Error correction

Mnemonic: “Objectives Information Format Language Sequence Test Review”

Question 3(a) [3 marks]

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Differentiate between Management and Administration.

Answer:

Mnemonic: “Middle Implementation Technical Limited vs Top Policy Conceptual Ultimate”

Question 3(b) [4 marks]

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Differentiate between Private Company and Public Company.

Answer:

Mnemonic: “Private Restricts, Public Permits”

Question 3(c) [7 marks]

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Explain Break-even analysis for a business practice.

Answer:

Break-even Formula: Break-even Point = Fixed Costs ÷ (Selling Price per unit - Variable Cost per unit)

graph LR
    A[Fixed Costs] --> B[Variable Costs]
    B --> C[Total Costs]
    C --> D[Revenue Line]
    D --> E[Break-even Point]

Components:

• Fixed Costs: Rent, salaries, insurance
• Variable Costs: Raw materials, labor
• Selling Price: Revenue per unit
• Contribution Margin: Price minus variable cost

Benefits:

• Profit Planning: Determines minimum sales needed
• Price Setting: Helps in pricing decisions
• Cost Control: Identifies cost structure
• Investment Decisions: Evaluates project viability

Mnemonic: “Fixed Variable Selling Contribution makes Profit Price Cost Investment”

Question 3(a) OR [3 marks]

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What is Leadership? Give its characteristics.

Answer:

Leadership Definition: The ability to influence and guide others toward achieving common goals.

Leadership Characteristics:

• Vision: Clear future direction
• Communication: Effective interaction skills
• Integrity: Honest and ethical behavior
• Confidence: Self-assurance in decisions
• Empathy: Understanding others’ perspectives

Mnemonic: “Visionary Communicators with Integrity, Confidence, Empathy”

Question 3(b) OR [4 marks]

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Enlist functions of management and explain planning.

Answer:

Management Functions:

• Planning: Setting objectives and strategies
• Organizing: Arranging resources and structure
• Staffing: Recruiting and managing people
• Directing: Leading and motivating employees
• Controlling: Monitoring and correcting performance

Planning Process: Planning involves setting goals, developing strategies, and creating action plans for future activities.

Mnemonic: “People Organize Staff Direct Control”

Question 3(c) OR [7 marks]

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Explain the features of a Joint Stock Company and write down its advantage.

Answer:

Joint Stock Company Features:

Advantages:

• Large Capital: Can raise substantial funds
• Risk Distribution: Limited liability protection
• Professional Management: Skilled managers
• Credibility: Public trust and recognition
• Growth Opportunities: Expansion possibilities

Mnemonic: “Separate Limited Transferable Perpetual Common gives Large Risk Professional Credibility Growth”

Question 4(a) [3 marks]

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Enlist any three State or National level Financial Institutions for support in developing new enterprise.

Answer:

Financial Institutions:

• SIDBI: Small Industries Development Bank of India
• NABARD: National Bank for Agriculture and Rural Development
• NSIC: National Small Industries Corporation
• State Financial Corporations: State-level funding
• MUDRA: Micro Units Development & Refinance Agency

Mnemonic: “SIDBI NABARD NSIC State MUDRA”

Question 4(b) [4 marks]

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What is Startup Mentor? What are the benefits of keeping Mentor.

Answer:

Startup Mentor Definition: An experienced professional who guides entrepreneurs with advice, connections, and support.

Benefits of Mentorship:

Mnemonic: “Experience Network Strategy Skills”

Question 4(c) [7 marks]

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Explain different types of Leadership models.

Answer:

Leadership Models:

Selection Factors:

• Situation: Context determines style
• Team Maturity: Experience level matters
• Organizational Culture: Company values
• Task Complexity: Nature of work

Mnemonic: “Autocratic Democratic Laissez Transformational Transactional with Situation Team Organizational Task”

Question 4(a) OR [3 marks]

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Write short notes on Startup Incubators.

Answer:

Startup Incubators: Organizations that support early-stage startups with resources, mentorship, and funding.

Services Provided:

• Office Space: Shared working facilities
• Mentorship: Expert guidance and advice
• Funding: Seed capital and investment
• Networking: Industry connections
• Training: Skill development programs

Mnemonic: “Office Mentorship Funding Networking Training”

Question 4(b) OR [4 marks]

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What is IPR? Write down its importance.

Answer:

IPR Definition: Intellectual Property Rights protect creations of the mind including inventions, designs, and artistic works.

Importance:

Mnemonic: “Innovation Commercial Market Revenue”

Question 4(c) OR [7 marks]

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Discuss the Financial organization Management.

Answer:

Financial Organization Structure:

graph TD
    A[Chief Financial Officer] --> B[Financial Controller]
    A --> C[Treasurer]
    B --> D[Accounting Manager]
    B --> E[Budget Manager]
    C --> F[Cash Manager]
    C --> G[Investment Manager]

Key Functions:

• Financial Planning: Budget preparation and forecasting
• Fund Management: Capital structure and liquidity
• Risk Management: Financial risk assessment
• Performance Monitoring: Financial analysis and reporting
• Compliance: Regulatory requirements adherence
• Investment Decisions: Capital allocation strategies

Organizational Benefits:

• Clear Accountability: Defined roles and responsibilities
• Efficient Operations: Streamlined financial processes
• Better Control: Enhanced financial oversight
• Strategic Support: Informed decision making

Mnemonic: “Planning Fund Risk Performance Compliance Investment gives Clear Efficient Better Strategic”

Question 5(a) [3 marks]

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What is project planning? Write down its purposes.

Answer:

Project Planning Definition: The process of defining project scope, objectives, and steps needed to achieve goals.

Purposes:

• Goal Setting: Clear objective definition
• Resource Allocation: Efficient use of resources
• Time Management: Schedule development
• Risk Mitigation: Problem anticipation
• Quality Assurance: Standard maintenance

Mnemonic: “Goals Resources Time Risk Quality”

Question 5(b) [4 marks]

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Write short notes on Project cost estimation.

Answer:

Cost Estimation Components:

Estimation Methods:

• Bottom-up: Detailed activity costing
• Top-down: High-level approximation
• Analogous: Historical project comparison
• Parametric: Mathematical models

Mnemonic: “Direct Indirect Fixed Variable using Bottom Top Analogous Parametric”

Question 5(c) [7 marks]

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What is feasibility analysis in business? Explain various analysis covered in feasibility study.

Answer:

Feasibility Analysis Definition: Systematic evaluation of project viability before implementation.

Types of Feasibility Analysis:

Benefits:

• Risk Reduction: Identifies potential problems early
• Resource Optimization: Prevents wasteful investments
• Decision Support: Provides data for go/no-go decisions
• Stakeholder Confidence: Builds investor trust

Process Flow:

1. Define project scope and objectives
2. Conduct various feasibility analyses
3. Evaluate results and alternatives
4. Make implementation recommendation

Mnemonic: “Technical Economic Market Legal Operational Schedule reduces Risk, Optimizes Resources, Supports Decisions, builds Confidence”

Question 5(a) OR [3 marks]

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What is bankruptcy? Write down the reasons of bankruptcy in business.

Answer:

Bankruptcy Definition: Legal process where individuals or businesses unable to pay debts seek relief from creditors.

Reasons for Business Bankruptcy:

• Poor Financial Management: Inadequate cash flow control
• Market Competition: Loss of market share
• Economic Recession: External economic factors
• Over-expansion: Rapid growth without proper planning
• High Debt Burden: Excessive borrowing costs

Mnemonic: “Poor Market Economic Over High”

Question 5(b) OR [4 marks]

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Distinguish between fixed cost and variable cost.

Answer:

Mnemonic: “Fixed Remains, Variable Changes”

Question 5(c) OR [7 marks]

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Describe various business ethics and their importance.

Answer:

Business Ethics Types:

Importance:

• Reputation Building: Creates positive brand image
• Stakeholder Trust: Builds confidence among all parties
• Legal Compliance: Avoids regulatory issues
• Employee Motivation: Improves workplace culture
• Long-term Success: Ensures sustainable growth
• Competitive Advantage: Differentiates from competitors

Implementation Framework:

1. Develop ethical codes and policies
2. Provide ethics training to employees
3. Establish reporting mechanisms
4. Monitor and evaluate ethical practices
5. Take corrective actions when needed

Benefits for Business:

• Risk Management: Prevents ethical scandals
• Customer Loyalty: Builds lasting relationships
• Investor Confidence: Attracts ethical investors
• Regulatory Support: Maintains good government relations

Mnemonic: “Corporate Employee Customer Supplier Environmental builds Reputation Trust Legal Motivation Success Competitive through Risk Customer Investor Regulatory”