JEPPIAAR ENGINEERING COLLEGE

Jeppiaar Nagar, Rajiv Gandhi Salai – 600 119

DEPARTMENT OF MECHANICAL ENGINEERING

QUESTION BANK

VIII SEMESTER

MG6071 – Entrepreneurship Development

Regulation – 2013(Batch: 2014 -2018)

Academic Year 2017 – 18

Prepared by

G.Raju khumar Assistant Professor/MECH

J.Joel Abraham, Assistant Professor/MECH
R.MutuKamatchi, Assistant Professor/MECH
 JEPPIAAR ENGINEERING COLLEGE
Vision of Institution

To build Jeppiaar Engineering College as an institution of academic excellence in

technological and management education to become a world class university.

Mission of Institution
 To excel in teaching and learning, research and innovation by promoting the
principles of scientific analysis and creative thinking.
 To participate in the production, development and dissemination of knowledge
and interact with national and international communities.
 To equip students with values, ethics and life skills needed to enrich their lives
and enable them to meaningfully contribute to the progress of society.
 To prepare students for higher studies and lifelong learning, enrich them with
the practical and entrepreneurial skills necessary to excel as future
professionals and contribute to Nation’s economy.

Engineering knowledge: Apply the knowledge of mathematics, science, engineering fundamentals, and
PO1 an engineering specialization to the solution of complex engineering problems.
Problem analysis: Identify, formulate, review research literature, and analyze complex engineering
PO2 problems reaching substantiated conclusions using first principles of mathematics, natural sciences, and
engineering sciences.
Design/development of solutions: Design solutions for complex engineering problems and design
PO3 system components or processes that meet the specified needs with appropriate consideration for the
public health and safety, and the cultural, societal, and environmental considerations
Conduct investigations of complex problems: Use research-based knowledge and research methods
PO4 including design of experiments, analysis and interpretation of data, and synthesis of the information to
provide valid conclusions.
Modern tool usage: Create, select, and apply appropriate techniques, resources, and modern
PO5 engineering and IT tools including prediction and modeling to complex engineering activities with an
understanding of the limitations.
The engineer and society: Apply reasoning informed by the contextual knowledge to assess societal,
PO6 health, safety, legal and cultural issues and the consequent responsibilities relevant to the professional
engineering practice.
Environment and sustainability: Understand the impact of the professional engineering solutions in
PO7 societal and environmental contexts, and demonstrate the knowledge of, and need for sustainable
development.
Ethics: Apply ethical principles and commit to professional ethics and responsibilities and norms of the
PO8 engineering practice.
Individual and team work: Function effectively as an individual, and as a member or leader in diverse
PO9 teams, and in multidisciplinary settings.
Communication: Communicate effectively on complex engineering activities with the engineering
PO10 community and with society at large, such as, being able to comprehend and write effective reports and
design documentation, make effective presentations, and give and receive clear instructions.
Project management and finance: Demonstrate knowledge and understanding of the engineering and
PO11 management principles and apply these to one’s own work, as a member and leader in a team, to
manage projects and in multidisciplinary environments.
Life-long learning: Recognize the need for, and have the preparation and ability to engage in
PO12 independent and life-long learning in the broadest context of technological change.

2
 JEPPIAAR ENGINEERING COLLEGE
DEPARTMENT OF MECHANICAL ENGINEERING

VisionoftheDepartment

To create excellent professionals in the field of Mechanical Engineering and

to uplift the quality of technical education on par with the International
Standards.

Department Mission

1. To reinforce the fundamentals of Science and Mathematics to

Mechanical Engineering and critically and relatively investigate complex
mechanical systems and processes.
2. To engage in the production, expansion and practice of advanced
engineering applications through knowledge sharing activities by
interacting with global communities and industries.
3. To equip students with engineering ethics, professional roles,
corporate social responsibility and life skills and apply them for the
betterment of society.
4. To promote higher studies and lifelong learning and entrepreneurial
skills and develop excellent professionals for empowering nation’s
economy.

PEO’s

1. To enrich the technical knowledge of design, manufacturing and

management of mechanical systems and develop creative and
analytical thinking in research.
2. To relate, strengthen and develop the theoretical knowledge of the
Mechanical Engineering by exhibiting various concepts applied through
diverse industrial exposures and experts’ guidance.
3. Facilitate the students to communicate effectively on complex social,
professional and engineering activities with strict adherence to ethical
principles.
4. Create awareness for independent and life long learning and
develop the ability to keep abreast of modern trends and adopt
them for personal technological growth of the nation.

PSO’s

1. To understand the basic concept of various mechanical engineering

field such as design, manufacturing, thermal and industrial engineering.
2. To apply the knowledge in advanced mechanical system and processes
by using design and analysis techniques.
3. To develop student’s professional skills to meet the industry
requirements and entrepreneurial skills for improving nation’s economy
stronger.
3
 COURSE OUTCOME

Explain the Importance of entrepreneurship in economic

C411.1
growth.

C411.2 Analyze opportunities and set up a business.

C411.3 Apply various skills to lead a business.

C411.4 Outline various capital structures and taxation in India

Analyze causes of sickness in a business and recommend

C411.5
corrective measures.

4
MG6071 ENTERPRENEURSHIP DEVELOPMENT LTPC
3003
OBJECTIVES:
To develop and strengthen entrepreneurial quality and motivation in students and to impart
basic entrepreneurial skills and understanding to run a business efficiently and effectively.

UNIT I ENTREPRENEURSHIP 9
Entrepreneur – Types of Entrepreneurs – Difference between Entrepreneur and Intrapreneur
Entrepreneurship in Economic Growth, Factors affecting entrepreneurial Growth.

UNIT II MOTIVATION 9
Major Motives Influencing an Entrepreneur – Achievement Motivation Training, Self Rating,
Business Games, Thematic Apperception Test – Stress Management, Entrepreneurship
Development
Programs – Need, Objectives.

UNIT III BUSINESS 9

Small Enterprises – Definition, Classification – Characteristics, Ownership Structures – Project
Formulation – Steps involved in setting up a Business – identifying, selecting a Good Business
opportunity, Market Survey and Research, Techno Economic Feasibility Assessment – Preparation
of Preliminary Project Reports – Project Appraisal – Sources of Information – Classification of
Needs and Agencies.

UNIT IV FINANCING AND ACCOUNTING 9

Need – Sources of Finance, Term Loans, Capital Structure, Financial Institution, Management of
working Capital, Costing, Break Even Analysis, Taxation – Income Tax, Excise Duty – Sales Tax.

UNIT V SUPPORT TO ENTREPRENEURS 9

Sickness in small Business – Concept, Magnitude, Causes and Consequences, Corrective
Measures - Business Incubators – Government Policy for Small Scale Enterprises – Growth
Strategies in small industry – Expansion, Diversification, Joint Venture, Merger and Sub
Contracting.

TOTAL : 45 PERIODS

OUTCOMES:
Upon completion of the course, students will be able to gain knowledge and skills needed to
run a business successfully.
TEXT BOOKS:
1. Khanka. S.S., “Entrepreneurial Development” S.Chand & Co. Ltd., Ram Nagar, New Delhi,
2013.
99
2. Donald F Kuratko, “Entreprenuership – Theory, Process and Practice”, 9th Edition, Cengage
Learning, 2014.
REFERENCES:
1. Hisrich R D, Peters M P, “Entrepreneurship” 8th Edition, Tata McGraw-Hill, 2013.
2. Mathew J Manimala, "Entreprenuership theory at cross roads: paradigms and praxis” 2nd
Edition Dream tech, 2005.
3. Rajeev Roy, "Entrepreneurship" 2nd Edition, Oxford University Press, 2011.
4. EDII “Faulty and External Experts – A Hand Book for New Entrepreneurs Publishers:
Entrepreneurship Development”, Institute of India, Ahmadabad, 1986.

5
 JEPPIAAR ENGINEERING COLLEGE
Jeppiaar Nagar, Rajiv Gandhi Salai – 600 119
DEPARTMENT OF ELECTRONICS AND COMMUNICATION ENGINEERING

QUESTION BANK
SUBJECT : MG6071 – Entrepreneurship Development
YEAR /SEM: IV /VIII

UNIT I ENTREPRENEURSHIP
Entrepreneur – Types of Entrepreneurs – Difference between Entrepreneur and Intrapreneur –
Entrepreneurship in Economic Growth, Factors Affecting Entrepreneurial Growth
PART – A
CO Mapping : C411.1
Q.No Questions BT Competence PO
Level
1 What is Entrepreneurship BTL-1 Remembering PO6, PO9
2 What is Intrapreneurship BTL-1 Remembering PO8,PO9
3 Define Enterprise BTL-1 Remembering PO9,PO12
4 What is an Intrapreneur BTL-1 Remembering PO7,PO10,PO
6
5 Definition of entrepreneur BTL-1 Remembering PO9,PO7
6 What is Innovator BTL-2 Understanding PO11,PO9
7 Define Innovation occurs through BTL-2 Understanding PO6
8 What is the difference b/w Inventor vs BTL-1 Remembering PO10,PO8,PO
Innovator 6
9 Define Motivation BTL-1 Remembering PO7,PO10
10 What is Achievement motivation BTL-1 Remembering PO6,PO11
11 Define Theories of entrepreneur BTL-1 Remembering PO10,PO7
12 What are the Elements of an entrepreneur BTL-2 Understanding PO9,PO8
13 Define the Characteristics of a successful entrepreneur BTL-2 Understanding PO11,PO12,P
O8
14 What are the Qualities needed of a successful BTL-2 Understanding
PO6,PO8
entrepreneurs
15 Define the Skills required for an entrepreneur BTL-2 Understanding PO10,PO6,PO
8
16 What are the Types of Entrepreneur BTL-2 Understanding PO7,PO12,PO
9
17 Define Innovating Entrepreneurs BTL-2 Understanding
PO12,PO6
18 Define Adaptive or Imitative Entrepreneurs BTL-2 Understanding
PO11,PO9
19 Define Fabian Entrepreneurs BTL-2 Understanding
PO12

6
 20 Define Drone Entrepreneurs BTL-2 Understanding
PO7,PO8
21 What are the Characteristics of an Entrepreneur? BTL-2 Understanding PO10,PO12,P
O7
22 What is the gap filling function? BTL-1 Remembering PO6,PO9
23 What is the difference b/w Entrepreneur Vs BTL-2 Understanding
PO8,PO10
Entrepreneurship
24 What is the difference b/w Entrepreneur Vs Enterprise BTL-2 Understanding PO12,PO10,P
O9
25 What is the difference b/w Entrepreneur vs Manager BTL-2 Understanding
PO9,p07
26 What is the difference b/w Entrepreneur vs Intrapreneur BTL-2 Understanding
PO6
27 Factors influencing entrepreneurship BTL-2 Understanding
PO9,PO11,p10
28 Define Women entrepreneurs BTL-2 Understanding
PO8,PO10
29 Rural entrepreneurs BTL-2 Understanding
PO9

PART – B
Discuss the characteristics, knowledge and skills that an
PO9,PO6,PO1
1 entrepreneur should Possess with examples in the BTL-4 Analyzing
0
contemporary business landscape.
What are the types of entrepreneur? Explain each with BTL-2 Understanding
2 PO8,PO9
suitable examples?
3 Explain the role of Intrapreneur in organizational growth BTL-2 Understanding PO12
Explain the similarities and dissimilarities between an BTL-2 Understanding
4 PO10,PO8
entrepreneur and an Intrapreneur.
What do you understand by the term ‘Entrepreneur’? BTL-2 Understanding
PO11,PO7,PO
5 Explain the main characteristics, imPOrtant, functions 10
performed and types of Entrepreneur. [April 2015]
Discuss the knowledge and skill required for an
6 BTL-2 Understanding PO9,p08
entrepreneur. [April 2015].
Explain the factors affecting the growth of PO6,PO9,PO1
7 entrepreneurship (in our country). [April 2012] BTL-5 Evaluating
0
Describe the significance in economic growth by
8 impacting entrepreneurship in the young minds in Indian BTL-5 Evaluating PO10,PO9
context. [April 2012]

Give a brief account of the origin of the entrepreneurial

9 BTL-5 Evaluating P06
concept

UNIT II MOTIVATION
Major Motives Influencing an Entrepreneur – Achievement Motivation Training, self Rating, Business Game,
Thematic Apperception Test – Stress management, Entrepreneurship Development Programs – Need,
Objectives.
PART – A
CO Mapping : C411.2
Q.No Questions BT Competence PO
Level
1 Define the term Motivation BTL-4 Analyzing PO4,PO11
7
2 List out the Maslow’s classification of need. BTL-1 Remembering PO2
3 What is Motivation process? BTL-2 Understanding PO8,PO9,PO1
2
4 State any two nature of motivation. BTL-4 Analyzing PO7,PO11
5 What is a Murthy et.al motivation factor? BTL-1 Remembering PO10,PO12
6 List out the three needs isolated by McClelland BTL-2 Understanding PO12
7 What are the factors that motivate people to go into BTL-2 Understanding PO6,PO8,PO1
business? 1
8 What are the internal factors that motivate people to go BTL-1 Remembering PO3,PO4,PO
into business? 9
9 What are the external factors that motivate people to go BTL-1 Remembering PO9,PO11,PO
into business? 12
10 What is Self-rating? BTL-1 Remembering PO6,PO8,PO1
2
11 What is business game? BTL-2 Understanding PO4,PO6
12 What is TAT? BTL-4 Analyzing PO9,PO11
13 What is Stress? BTL-4 Analyzing PO7,PO10,PO
12
14 What is Eustress? BTL-1 Remembering PO7,PO8
15 What is Distress? BTL-4 Analyzing PO2,PO6,PO1
1
16 What are the symptoms of stress? BTL-1 Remembering PO4,PO10
17 What do you mean by psychosomatic problem? BTL-1 Remembering PO10,PO12
18 What do you mean by psychological problem? BTL-1 Remembering PO7,PO10,PO
12
19 What do you mean by behavioral problem? BTL-1 Remembering PO2,PO3
20 How can the individual level of stress be coped? BTL-1 Remembering PO10
21 What do you meant by EDP’s? BTL-1 Remembering PO6,PO8,PO
9
22 State EDP’s Process BTL-1 Remembering PO4,PO11
23 What are the Objectives of EDPs BTL-1 Remembering PO3
24 What are the Contents of EDPs BTL-1 Remembering PO6,PO8,PO1
0
25 Role of government & non- governmental agencies in BTL-1 Remembering PO6,PO10
promoting entrepreneurship in India
26 What are the Characteristics of a successful Training BTL-1 Remembering PO6
programme
27 Def5ne the Phases of EDPs BTL-1 Remembering PO11,p012
28 List out the problems faced by EDP’s BTL-1 Remembering PO6,PO9,PO1
0
PART – B
Explain the various motiavational initiatives of the central
PO7,PO8,PO
1 and state government to promote entrepreneurship in BTL-5 Evaluating
9
India[NOV 2017]
Discuss the role played by the entrepreneurship
2 development institute in promoting entrepreneurship in BTL-4 Analyzing PO12
India[NOV 2017
Explain the types of rating techniques with their merits
3 BTL-5 Evaluating PO11,PO12
and demerits. [NOV 2016
How are entrepreneurship development programs helpful
4 BTL-4 Analyzing PO9,PO10
to an entrepreneur explain[NOV 2016
Explain the steps involved in Entrepreneurship
5 BTL-5 Evaluating PO2,PO3,PO9
development. [April 2014]
Bring out the model for entrepreneurship development and
6 discuss the role of Achievement motivation in BTL-4 Analyzing PO8,PO9
entrepreneurship development. [April 2011]
8
 What is Business game? State its objectives, needs. Define
PO3,PO9,PO1
7 in basket training. Why in basket training is essential to BTL-5 Evaluating
1
entrepreneurs? Give reasons. [April 2011]
Define stress. Explain the symptoms of stress. How to
8 BTL-5 Evaluating PO7
overcome the stress (for businessman)? [April 2012]
What is entrepreneurship development program? Provide
9 BTL-3 Applying PO8,PO9
the various sources of EDP. [April 2012].
Describe the motivational forces that cause entrepreneurial PO2,PO6,PO
10 BTL-4 Analyzing
growth in a country [April 2010] 9

UNIT III BUSINESS

Small Enterprises – Definition, Classification – Characteristics, Ownership Structures – Project Formulation –
Steps involved in setting up a Business – identifying, selecting a Good Business opportunity, Market Survey
and Research, Techno Economic Feasibility Assessment – Preparation of Preliminary Project Reports – Project
Appraisal – Sources of Information – Classification of Needs and Agencies.
PART – A
CO Mapping : C411.3
Q.No Questions BT Competence PO
Level
1 Define Small Scale Industries. BTL-1 Remembering PO12
2 What are the chief characteristics of SSI? BTL-2 Understanding PO6,PO11,PO
12
3 What are the classifications of SSI? BTL-1 Remembering PO8,PO9
4 List the importance of SSI. BTL-1 Remembering PO6,PO7,PO1
2
5 Write any two objectives of small enterprises. BTL-1 Remembering PO6
6 Define Sole Proprietorship. BTL-1 Remembering PO9,PO10
7 Define Partnership. BTL-2 Understanding PO6,PO9
8 What are the salient features of partnership firm? BTL-4 Analyzing PO10,PO11
9 What is partnership deed? PO8,PO9,PO1
BTL-4 Analyzing
0
10 What are the different modes of dissolution of BTL-1 Remembering PO6,PO7
partnership?
11 Define company. BTL-1 Remembering PO9,PO10,
12 What are the salient features of a company? BTL-1 Remembering PO6,PO7,PO
8
13 Define Co-operation. BTL-1 Remembering PO10,PO11
14 Define the term project. BTL-1 Remembering PO9,PO10
15 How do you classify projects? BTL-1 Remembering PO8,PO9
16 How to prepare preliminary project reports. BTL-1 Remembering PO7,PO9,PO1
2
17 What are the significances of project formulation? BTL-1 Remembering PO9,PO10
18 Write the need of project formulation. BTL-1 Remembering PO11,PO12
19 What are the elements of project formulation? BTL-4 Analyzing PO6
20 Write note on feasibility study. BTL-2 Understanding PO9,PO10
21 What is feasibility report? BTL-2 Understanding PO6,PO7,PO
9
22 What is techno economic feasibility? BTL-2 Understanding PO8,PO9
23 What is non-probabilistic sampling? BTL-1 Remembering PO10,PO11
24 Give the definition of Marketing Research. BTL-1 Remembering PO8,PO9,PO1
0
25 What are the steps involved in the process of a market BTL-2 Understanding PO12
survey?
26 Mention the types of marketing research. BTL-1 Remembering PO9
27 What are the sources of Business ideas? BTL-2 Understanding PO9,PO10

9
 28 What are the steps in identifying business opportunities? BTL-2 Understanding PO6,PO8,PO
9
29 Discuss the characteristics of small enterprises. BTL-1 Remembering PO9,PO12
30 Identify the problems faced by small enterprise BTL-1 Remembering PO9

PART – B

1 Discuss the important of feasibility assessment and preparation

of project reports with a suitable case study.
BTL-4 Analyzing P8,PO9
2 What is Business Environment? What are the
methods of preparing Entrepreneurship development BTL-6 Creating PO8
program in detail?
3 Explain the meaning and scope of Market survey and
Research. Discuss its role in entrepreneurship. [April BTL-4 Analyzing PO7,PO12
2014]
4 What are the criteria for selecting a particular
project? What are the subject matters behind
preliminary project report preparation? [April 2011] BTL-4 Analyzing PO10,PO11
Discuss the methods of project appraisal. [April
2013].
5 What are all the functional risks faced by a small
business? Discuss the reason for Bankruptcy and BTL-4 Analyzing PO9,PO10
remedial actions against them? [April 2010]
6 Discuss the importance and objective of network
analysis technique with suitable example. [April BTL-4 Analyzing PO9
2010]
Explain the meaning and scope of Market survey and
Research. Discuss its role in entrepreneurship. [April BTL-4 Analyzing PO8,PO9
2014]
8 Discuss the ownership structures of small business. BTL-4 Analyzing PO6,PO10
[April 2012]
9 Discuss the classification and characteristics of small BTL-4 Analyzing PO11
business [April 2010].

UNIT IV FINANCING AND ACCOUNTING

Need – Sources of Finance, Term Loans, Capital Structure, Financial Institution, management of working
Capital, Costing, Break Even Analysis, Network Analysis Techniques of PERT/CPM – Taxation – Income
Tax, Excise Duty – Sales Tax.
PART – A
CO Mapping : C411.4
Q.No Questions BT Competence PO
Level
1 Write the classification of financial needs. BTL-2 Understanding PO2,PO3
2 What is fixed capital? BTL-1 Remembering PO4,PO9
3 What is working capital? BTL-1 Remembering PO2,PO3,PO
4
4 What is long-term capital? BTL-1 Remembering PO6,PO8,PO1
1
5 What is short-term capital? BTL-1 Remembering PO9
6 What are the sources of finance? BTL-2 Understanding PO10,PO11

10
7 What is term loan? BTL-2 Understanding PO8,PO9
8 List the sources of short-term finance. BTL-1 Remembering PO2,PO9,PO1
0
9 Define capital structure BTL-1 Remembering PO7,PO9
10 Write any two features of capital structure BTL-1 Remembering PO9,PO10
11 List the factors determining capital structure BTL-1 Remembering PO4,PO7
12 What are the types of financial institutions? BTL-1 Remembering PO6,PO10
13 What are the functions of SFC? BTL-4 Analyzing PO8,PO9
14 Define working capital BTL-1 Remembering PO2,PO3
15 What are the concepts of working capital? BTL-1 Remembering PO8,PO9
16 What is gross working capital? BTL-1 Remembering PO,PO9,PO10
17 List some current assets BTL-2 Understanding PO2
18 List some current liabilities. BTL-1 Remembering PO8,PO10,PO
11
19 State operating cycle BTL-2 Understanding PO6,PO12
20 What are the types of working capital? BTL-2 Understanding PO8,PO10
21 What is fixed working capital? BTL-1 Remembering PO9
22 What is variable working capital BTL-2 Understanding PO2,PO9,PO1
2
23 Write any five factors determining working capital BTL-1 Remembering PO2,PO8,PO1
1
24 List any five sources of working capital BTL-1 Remembering PO2,PO7
25 What is working capital management BTL-2 Understanding PO9,PO10
26 What is opportunity costing? BTL-4 Analyzing PO9,PO11
27 What is break-even Point? BTL-2 Understanding PO7
28 Write note on critical path method. What do you BTL-5 PO3,PO9,PO1
Evaluating 0
mean by activity and event?
29 Write notes on slack BTL-1 Remembering PO6,PO8
30 Define sales tax and Excise duty BTL-2 Understanding PO4,PO9,PO1
0
PART – B
Business model defines what a business does and how it makes
1 money doing that. there is a long list of traditional business BTL-4 Analyzing PO2,PO3
model and recent shift to new business model with 2 examples.
Elaborate the various sources of funding available for
2
entrepreneurs in automobile sector in India
BTL-4 Analyzing PO8,PO10
Discuss the objectives and purposes of capital
3 structure. What are the new behavioral issues in BTL-3 Applying PO9,PO10
Capital Structure Systems?
What is cost-volume-profit analysis? State its role
4 and significance in Management accounting. [April BTL-4 Analyzing PO2
2014]
What are all India Financial Institutions that meet the
5 financial needs of the entrepreneurs? –Explain. [April BTL-6 Creating PO6
2013]
Explain the sources of short-term finance. [April
6 BTL-3 Applying PO9,PO10
2013]
Discuss the sources of finance for an entrepreneur.
7 Also provide the strategies for the suitable capital BTL-3 Applying PO2,PO10
structure for a calculated risk business. [April 2012
Define working capital. Distinguish between Gross
8 BTL-4 Analyzing PO8
and Networking capital. What are the major
11
 determinants of working capital requirements of an
Entrepreneur? [April 2011

UNIT V SUPPORT TO ENTREPRENEURS

Sickness in small Business – Concept, Magnitude, causes and consequences, Corrective Measures –
Government Policy for Small Scale Enterprises – Growth Strategies in small industry – Expansion,
Diversification, Joint Venture, Merger and Sub Contracting
PART – A
CO Mapping : C411.5
Q.No Questions BT Competence PO
Level
1 Define Industrial Sickness. BTL-1 Remembering PO12,PO11
2 List the process of Industrial sickness. BTL-1 Remembering PO8,PO9,PO1
0
3 Write signals of Industrial Sickness. BTL-3 Applying PO6
4 What are the symptoms of Industrial Sickness? BTL-2 Understanding PO6,PO9
5 Brief the two causes for industrial sickness. BTL-1 Remembering PO12
6 Write any four internal causes of industrial sickness. BTL-1 Remembering PO8,PO9,PO1
0
7 Write any four external causes of industrial sickness. BTL-1 Remembering PO6,PO7
8 What are the causes of slow growth of Industrial BTL-1 Remembering PO9,PO10
Entrepreneurship in India?
9 What are the important Government Policies? BTL-1 Remembering PO12
10 What is BIFR? BTL-4 Analyzing PO11
11 What are the stages of Growth? BTL-2 Understanding PO8,PO12
12 List the types of Growth strategies. BTL-1 Remembering PO7,PO9,PO1
0
13 State the growth strategies in small Industry. BTL-1 Remembering PO9
14 What is the difference between expansion and BTL-1 Remembering PO7,PO9
diversification?
15 What are the three forms of Expansion? BTL-1 Remembering PO6
16 Define the term magnitude? BTL-1 Remembering PO9,PO12
17 What are the three types of Diversification? BTL-1 Remembering PO6,PO10
18 Define Franchising. BTL-1 Remembering PO7,PO9
19 What are the types of Franchising? BTL-2 Understanding PO9,PO10,PO
11
20 What are the types of Franchiser? BTL-2 Understanding PO8,PO9
21 What are the contents of Franchise Agreement? BTL-1 Remembering PO9,PO10
22 Define Joint Venture. BTL-2 Understanding PO9
23 List any four content of joint venture agreement? BTL-2 Understanding PO8,PO9,PO1
0
24 When companies do prefer joint ventures? BTL-1 Remembering PO9,PO10
25 What is the difference between merger and acquisition? BTL-2 Understanding PO6,PO9
26 What are the types of merger? BTL-1 Remembering PO10
27 What is conglomerate merger? BTL-1 Remembering PO11,PO12
28 What is Sub-Contracting? BTL-2 Understanding PO8,PO11
29 Define venture capital. Mention any two sources from BTL-1 Remembering PO8,PO9,PO1
which it can be received. 1
30 What are the factors covered in the final contract? BTL-3 Applying PO9

PART – B
1 Discuss about how expansion plans, Diversification and
BTL-5 Evaluating PO6,PO8
ventures help the growth of the business in auto sector. [April

12
 2017]
2 Enumerate the government of India Policy for small scale
BTL-2 Understanding PO9,PO11
enterprises with examples. [April 2016]
3 What is Diversification? Discuss the basis of BTL-5 Evaluating PO9
diversification in entrepreneurship. [April 2014]
4 Explain joint venture and Merger. [April 2015] BTL-5 Evaluating PO10,PO11
5 Describe the government Policy for small scale BTL-2 Understanding PO8
enterprises to support the entrepreneur. [April 2012
6 Explain the concept of Industrial sickness and the
magnitude of sickness problem of SMEs (Small and BTL-5 Evaluating PO8,PO12
Medium Enterprises) in India during 10th plan period.
[April 2011
7 Discuss the features of Sick Industrial Companies
Act 1985 and the measures taken and suggestions of BTL-4 Analyzing PO8,PO9
the Act. [April 2011]
8 Illustrate the cause and consequences of sickness in
small business. Suggest measures to overcome such BTL-5 Evaluating PO10
sickness [April 2010
9 What are the financial risks faced by a small
business? Discuss the reason for Bankruptcy and BTL-4 Analyzing PO12
remedial actions against them. [April 2010

SL. UNIT I ENTREPRENEURSHIP

NO
Entrepreneur – Types of Entrepreneurs – Difference between Entrepreneur and Intrapreneur –
Entrepreneurship in Economic Growth, Factors Affecting Entrepreneurial Growth
PART – A
1 What is Entrepreneurship
Entrepreneurship is the function of seeking investment & production opportunity, organizing an
enterprise to undertake a new production process, raising capital, arranging labor & raw materials
finding a site, introducing a new technique & commodities, discovering new sources for the
enterprise. Undertaking of an enterprise is thus entrepreneurship
2 What is Intrapreneurship
Intrapreneurship is the process by which other new ventures are born within the
confines of an existing corporation. It involves expansion by exploring new opportunities through
new combinations of existing resources
3 Define Enterprise
Enterprise consists of people working together primarily for the purpose of making, selling &
distributing a product or services. Every enterprise carries out some sort of final net profit or loss
calculations.
4 What is an Intrapreneur
Intrapreneur’s are new breed of mangers emerging in big organizations. The senior level managers
are encouraged by the entrepreneur, to generate new ideas & the convert them into products research
& developmental activities within the framework of an organization. They are given freedom to
operate on their own. They are encouraged to think themselves as entrepreneurs within the
enterprise
5 Definition of entrepreneur
 Peter Drucker defines an entrepreneur “As one who always searches for change responds to
it & exploits it as an opportunity”

 New Encyclopaedia Britannica considers an entrepreneur as “An individual who bears the
13
 risk of operating a business in the face of uncertainty about the future conditions”
According to Noah Webster, Entrepreneur is “one who assumes the risk and management of
business
6 What is Innovator
Innovative is one who sees the opportunity for introducing a new technique of production process or
a new commodity or a new market or even rearranges the organization.
7 Define Innovation occurs through
 introduction of a new quality in a product
 new product
 discovery of fresh demand and fresh sources of supply
 by change in the organization
8 What is the difference b/w Inventor vs Innovator
 An inventor discovers new methods & new materials. The inventor thus produces ideas &
the entrepreneur implements them & gets them done.
An innovator is one who utilizes inventions & discoveries in order to make new
combinations & thus produces newer & better goods, which gives him profit &
satisfaction
9 Define Motivation
Motive may be defined as the inner state of our mind that moves or activates or energies
and directs our behavior towards our goal.
10 What is Achievement motivation
According to McClelland achievement motivation can be developed through training
and experience. Ambition is the lever of all motives and nourishes achievement motive
11 Define Theories of entrepreneur
 Richard Cantillion’s Theory of risk-bearing
 12Knight’s Theory of uncertainty
 Theory of Jean – Baptiste coordination, organization & supervision
 Schumpeter’s Theory of innovation
 McClelland’s Theory of achievement
Peter Drucker’s Theory of opportunity
12 What are the Elements of an entrepreneur
 Innovation – refers to developing new products, markets, process, and technology.
 Risk-taking – is attributed to show courage, confidence
 Vision – dream of an entrepreneur
 Ethics (including character & values) – qualities & inner strength of a person
Organizing skills – required for ensuring success in terms of coordination, control, direction &
communication
13 Define the Characteristics of a successful entrepreneur
 Capacity and willingness to assume risk
 Willingness to hard work
 Vision and foresightedness
 Creative and imaginative thinking
 High need achievement
 Ability to maximize resources
High degree of ambition
14 What are the Qualities needed of a successful entrepreneurs
Vision, passion, drive, integrity, innovation, risk taker, flexibility, loyalty, enthusiasm,
communicator, responsibility, self-confidence, communicator, creativity, trust worthy, hard worker
15 Define the Skills required for an entrepreneur
 Technical skill
14
  Entrepreneurial skill
 Business Management skills
others
Visualization, planning, risk-taking, ability to deal with situations, Elicit Positive response from
administrators, bankers, infrastructure institutions, clients and employees, understanding of
marketing, Quality control, Finance, Banking, commercial law, Government regulations and
procedures, Taxation and human relations, awareness of technology , tools and equipment and
machinery, knowledge of the product, process, packaging, advertising and market Potential.
16 What are the Types of Entrepreneur
 Innovating
 Imitating
 Fabian
 Drone or laggards
17 Define Innovating Entrepreneurs
One who sees the opportunity for introducing a new technique of production process or
a new commodity or a new market or even reorganizes the enterprise.
18 Define Adaptive or Imitative Entrepreneurs
Imitative entrepreneurs do not innovate themselves, they only imitate techniques and technology
innovated by others. Such entrepreneurs are suitable for underdeveloped regions
19 Define Fabian Entrepreneurs
This entrepreneurs have neither will to introduce new changes nor desire to adopt new
methods innovated by the most enterprising entrepreneurs. Such entrepreneurs are shy
and lazy they are not interested in taking risk and try to follow the footsteps of their
predecessors
20 Define Drone Entrepreneurs
Refuse to utilize opportunities to make changes in production. Such entrepreneurs
may even suffer loss, but they do not make changes in production methods. They
are pushed out of the market
21 What are the Characteristics of an Entrepreneur?
(a) Innovating function
(b) Organizing function
(c) A function of group level pattern
(d) Managerial and Leadership function
Gap filling function
22 What is the gap filling function?
The most important feature of entrepreneurship is gap filling. The main aspects of the entrepreneur
are to fill the gap or make up the deficiencies which always exist in the knowledge about the
production function
23 What is the difference b/w Entrepreneur Vs Entrepreneurship
Entrepreneur Entrepreneurship
Refers to a person Refers to a process
Visualiser Vision
Creator Creation
Organizer Organization
Innovator Innovation
Technician Technology
Decision maker Decision Making
Planner Planning
Leader Leadership
Motivator Motivation
15
 Programmer Action
Risk-taker Risk taking
Communicator Communication
Administrator Administration
24 What is the difference b/w Entrepreneur Vs Enterprise
Entrepreneur Enterprise
Person Firm/Company/Organization
Individual Group of people
Subject Object
Input Output
Passion Profit
25 What is the difference b/w Entrepreneur vs Manager
Dimension Entrepreneur Manager
s
Motive The main motive of an entrepreneur The main motive of a manager is to
is to start a venture by setting up an render his services in an enterprise
enterprise
Status An entrepreneur is the owner of an A manager is an employee in the
enterprise enterprise
Risk - Assumes all risk involved in Does not bear any risk involved in
bearing running the enterprise the enterprise
26 What is the difference b/w Entrepreneur vs Intrapreneur
Dimension Entrepreneur Intrapreneur
s
Dependenc An entrepreneur is independent in An intrapreneur’s action is
y his operations dependent on the decision of
entrepreneur, the owner
Raising of An entrepreneur himself raise funds Funds are not raised by the
funds required for an enterprise Intrapreneur
Risk Entrepreneur bears the risk An Intrapreneur does not fully bear
involved in the business the risk involved in the enterprise.
27 Factors influencing entrepreneurship
 Internal factors - Demographic variables, personal characteristic, personality traits, cultural
factors, environmental factors.
 External factors – Political environment, social & cultural environment, economic
environment, legal environment, technological environment.
 Economic factors - Capital, labor, raw materials, market
Non-economic factors - Legitimacy of entrepreneurship, social mobility, marginality, need
achievement, status respect
28 Define Women entrepreneurs
An enterprise owned & controlled by a women. Women entrepreneurs are those women who think
of a business enterprise, initiate it, organize & combine the factors of production, operate the
enterprise & undertake risk & handle economic uncertainty involved in running a business nterprise.

16
29 Rural entrepreneurs
 Risk bearing
 Innovations
 Supervision & leadership
 Coordination, administration & control

PART – B
1 Discuss the characteristics, knowledge and skills that an entrepreneur should possess with examples in the
contemporary business landscape. Nov 2017
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:02

2 What are the types of entrepreneur? Explain AN each with suitable examples? Nov 2017
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:05
3 Explain the role of Intrapreneur in organizational growth Nov 2016
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:06
4 Explain the similarities and dissimilarities between an entrepreneur and an Intrapreneur. Nov 2016
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:06
5 What do you understand by the term ‘Entrepreneur’? Explain the main characteristics, important, functions
performed and types of Entrepreneur. [April 2015]
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:02

6 Discuss the knowledge and skill required for an entrepreneur. [April 2015].
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:03

7 Explain the factors affecting the growth of entrepreneurship (in our country). [April 2012]

Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:33,38

8 Describe the significance in economic growth by impacting entrepreneurship in the young minds in Indian
context. [April 2012]

Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:,14

9 Give a brief account of the origin of the entrepreneurial concept

Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:08

UNIT II MOTIVATION
Major Motives Influencing an Entrepreneur – Achievement Motivation Training, self Rating,
SL.NO
Business Game, Thematic Apperception Test – Stress management, Entrepreneurship Development
Programs – Need, Objectives.
PART – A
Define the term Motivation
1 Motivation is the willingness to exert high levels of effort towards organizational goals,
conditional by the efforts ability to satisfy some individual need
List out the Maslow’s classification of need.
2 They are (i) Physiological needs (ii) Safety needs (iii) Social needs (iv) Esteem needs (v)
Self – actualization needs.
What is Motivation process?
3
The basic elements of the motivational process are (i) motive (ii) behavior and (iii) goal.
17
 The motives are directed towards the realization of certain goals, which in turn determine
entrepreneur behavior
State any two nature of motivation.
4 (i) Motivation is internal to man.
A single motive can lead to different behavior
What is a Murthy et.al motivation factor?
(a) Ambitious Factors
5
(b) Compelling Factors
Facilitating Factors
(a) List out the three needs isolated by McClelland Need for affiliation
6 (b) Need for Power
(c) Need for achievement
What are the factors that motivate people to go into business?
7 (a) Internal Factors
(b) External Factors
What are the internal factors that motivate people to go into business?
(a) Desire to do something new
8
(b) Educational Qualification
(c) Technical background
What are the external factors that motivate people to go into business?
(a) Government support and assistance
9 (b) Availability of labor and raw material
(c) Promising demand for the product etc.
What is Self-rating?
10 Self-rating teaches people to observe their own behavior, compare their outputs to their
goals and administer their own reinforcement to sustain goal commitment and performance
What is business game?
A business simulation or game may be defined as a sequential decision making exercise
11
structured on a model of business operation, in which the trainee assumes the role of
managing the simulated operation
What is TAT?
The TAT is Thematic Appreciation Test balloons are not provided with the frustration
12
cartoons shown to the respondent. The respondent is asked to interpret the situation with
regards to particular product. The respondent will ask to react with the cartoon picture
What is Stress?
13 Stress is defined as an adoptive response to the external situation that results in physical,
psychological and behavioral deviation for organization participants.
What is Eustress?
Eustress refers to the healthy, Positive, constructive outcome of stressful events and the
14 stress response. Eustress is the stress experience that activates and motivates people to
achieve their goals and succeed in their life’s challenges.
What is Distress?
The Stress is a condition arising from the interaction of people and their jobs and
15 characterized by change within people that force them to deviate from their normal
functioning.
What are the symptoms of stress?
16 (a) Nervousness and Tension

18
 (b) Emotional instability
(c) Sleeping problem absenteeism
(d) Inability to relax
What do you mean by psychosomatic problem?
The word ‘psychosomatic’ combines the two words namely, ‘psycho’ which means mind
17
and ‘soma’ which means body. The psychosomatic symptoms of stress are bodily or
physical for the causes are mental
What do you mean by psychological problem?
The high level of stress may be accompanied by psychological reactions such as anger,
18
anxiety, depression nervousness, irritability, tension and boredom depending uPOn the
nature of stress and the capacity of individual to bear stress
What do you mean by behavioral problem?
When the stress is at high level, people show dysfunctional behavior. Such behavior may
19
lead to take alcohol, drug addiction, increase in smoking, sleeplessness, under/over eating,
etc
How can the individual level of stress be coped?
20 individual stress can be copied by (i) Physical exercise (ii) Changing Gears (iii) Behavioral
self-control (iv) Warming up one self (v) Social support
What do you meant by EDP’s?
The need for achievement is one of the important entrepreneurial traits. Behavioral
21
experiments have proved that need achievement can be developed through entrepreneurial
training, Popularly known as EDP’s
State EDP’s Process
(a) Selection of person with the required Potential in terms of knowledge attitudes.
(b) Designing techniques for training.
22
(c) Selection and training process.
(d) Survey of environment
Strategies to make ED effective
What are the Objectives of EDPs
 Develop & strengthen their entrepreneurial quality
 Select project
 Formulate project for the product
 Enable him/her to take decisions
23  Enable to communicate clearly & effectively
 To attract people to start business
 To make them aware
 To motivate & strengthen them
 To develop
 Make them learn compliance of law
What are the Contents of EDPs
 General introduction to entrepreneurships
 Motivation training
24
 Management skills
 Support system & procedures
Plants visits
Role of government & non- governmental agencies in promoting entrepreneurship in India
 Promotional role – awareness building, encouragement, motivation, guidance etc
25
 Supportive role – promotion, maintenance & development of entrepreneurships
Regulatory role – regulations & controls through various laws
19
 What are the Characteristics of a successful Training programme
 Its objectives and scope are clearly defined
26  The training techniques are related directly to the needs and objectives of the
 organization
It employs accepted principles of learning
Def5ne the Phases of EDPs
An Entrepreneurship Development programme consists of the following three phases
 Pre – training phase
27
 Training phase
 Post – training phase

List out the problems faced by EDP’s

 Trainer’s motivations are not found up to the mark in motivating the trainees to start
their own enterprise.
28  ED organizations lack in commitment & sincerity in conducting EDPs
 Non –conductive environmental constraints
 Attitudes of the supporting agencies like banks & financial institutions
Selection of wrong trainees
PART – B
Explain the various motiavational initiatives of the central and state government to promote entrepreneurship
1 in india Nov 2017
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:177
Discuss the role played by the entrepreneurship development institute in promoting entrepreneurship in india
2 Nov 2017
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:161
Explain the types of rating techniques with their merits and demerits. Nov 2016
3
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:
How are entrepreneurship development programs helpful to an entrepreneur explain Nov 2016
4
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:62
Explain the steps involved in Entrepreneurship development. [April 2014]
5
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:63
Bring out the model for entrepreneurship development and discuss the role of Achievement
6 motivation in entrepreneurship development. [April 2011]
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:46
What is Business game? State its objectives, needs. Define in basket training. Why in
7 basket training is essential to entrepreneurs? Give reasons. [April 2011]
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:188
Define stress. Explain the symptoms of stress. How to overcome the stress (for
8
businessman)? [April 2012] Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:
What is entrepreneurship development program? Provide the various sources of EDP.
9 [April 2012].
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:66
Describe the motivational forces that cause entrepreneurial growth in a country [April
10 2010]
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:42

UNIT III BUSINESS

Small Enterprises – Definition, Classification – Characteristics, Ownership Structures – Project
SL.NO Formulation – Steps involved in setting up a Business – identifying, selecting a Good Business
opportunity, Market Survey and Research, Techno Economic Feasibility Assessment –
Preparation of Preliminary Project Reports – Project Appraisal – Sources of Information –
20
 Classification of Needs and Agencies.
PART – A
Define Small Scale Industries.
The definition of Small-Scale Industry (SSI) varies from one country to another and
1 from one time to another in the same country depending upon the pattern and stage of
development. The term small scale industries have been defined in three ways (i)
Conventional (ii) Operational and (iii) National income
What are the chief characteristics of SSI?
2 A small-scale unit is generally a one-man show.
2. Capital investment is small and has less than 10 workers
What are the classifications of SSI?
Manufacturing Industries
2. Feeder Industries
3 3. Serving Industries
4. Ancillary to large Industries
5. Mining and Quarrying
List the importance of SSI.
Innovative and Productive
2. Individual tastes, fashions and personalized service.
4 3. Symbols of National Identity
4. Always winners of the Game
5. Dispersal over wide area.
Write any two objectives of small enterprises.
To eliminate the economic backwardness of rural and underdeveloped regions in the
5
country.
2. To generate immediate and large scale employment opPOrtunities
Define Sole Proprietorship.
6 A sole proprietor carries on a business for his or her own benefit, without participation
of other persons except employees
Define Partnership.
7 A partnership is an agreement between two or more persons to operate a business
particularly when investment or knowledge from others required
What are the salient features of partnership firm?
1. More persons

8 2. Profit and Loss sharing

3. Contractual Relationship
Existence of Lawful Business
What is partnership deed?
A partnership is an agreement between two or more persons to operate a
9 business. When the agreement is in written form, it is called 'partnership deed.' It
must be duly signed by the partners, stamped and registered. Any alteration in
partnership deed can be made with the mutual consent of all the partners.
What are the different modes of dissolution of partnership?
1. Dissolution by Agreement
10
2. Compulsory dissolution

21
 3. Dissolution due to contingencies
4. Dissolution by court
Define company.
According to Chief Justice John Marshall of USA defined a company as “corPOration is
11 an artificial being invisible, intangible and existing only in contemplation of law. Being
the mere creature of law, it Possesses only those properties which the charter of its
creation confers up on it, either expressly or an incidental to its very existence”.
What are the salient features of a company?
1. Separate legal entity
2. Artificial Person
12
3. Perpetual succession
4. Limited Ability
5. Common Seal
Define Co-operation.
The Indian Co-operative Societies Act, 1912, Section 4, defines as “a co-operative is a
joint enterprise where ten or more individuals contribute capital and labor and also
13
manage its affairs and effectively meets the competition from large enterprise with an
understanding to primarily distribute among themselves equally the profits earned or
profits derived out of the venture”.
Define the term project.
14 A project is defined as a scientifically evolved work plan devised to achieve a
specific objective within a specific period of time.
How do you classify projects?
1. Quantifiable and Non-quantifiable projects
15
2. Sectoral projects
3. Techno-Economic projects
How to prepare preliminary project reports.
1.Product description
2.Production and general evaluation of prospects
16 3.Market aspects
4.Production requirement
5.Capital requirements

What are the significances of project formulation?

A well formulated project is the best gate way for obtaining the required assistance from
17
financial instruction. Project report will also be a great assistance or obtaining necessary
Government clearances and in meeting the hurdles of procedural formation
Write the need of project formulation.
1.Selecion of appropriate technology
18
2. Influence of external economy
3. Mobilization of resources.
What are the elements of project formulation?
1. Feasibility Analysis
19 2. Techno-economic Analysis
3. Project Design and Network Analysis
4. Input Analysis
22
 5. Financial Analysis
Write note on feasibility study.
Feasibility study is used to investigate the project in six different aspects economic,
20
technical, managerial, organizational, commercial and financial. The relative importance
of these different aspects varies considerably according to the type of project involved
What is feasibility report?
A feasibility report of a new enterprise or an expanding enterprise consists of some
background information about the industry to which the project belongs, and the
21
enterprise submitting the report in general. It also contains the economic information,
financial data and technical details which save a finite number of discrete economic
processes or cost structure of the industry concerned
What is techno economic feasibility?
Techno-economic feasibility makes an analysis of the market and technology. The
22 choice of technology itself will be based on the demand potential and aid in project
design. Techno-economic analysis gives to the project individuality and sets the stage
for detailed design development
What is non-probabilistic sampling?
Non-probabilistic sampling is a sampling technique where the samples are gathered in a
23 process that does not give all the individuals in the population equal chances of being
selected.
Give the definition of Marketing Research.
24 Marketing research is the systematic objectives and exhaustible search for the study of
facts relevant to any problem in the field of marketing
What are the steps involved in the process of a market survey?
Defining the purpose or objectives.
25 Gathering data from secondary source.
Gathering information from primary source
Analyzing and interpreting the report.
Mention the types of marketing research.
Consumer research
Market/Demand research
26 Competition research
Distribution research
Price research
Advertising/promotion research
What are the sources of Business ideas?
Market characteristics
Import and Export
Emerging new technology and Scientific know how
27
Social and Economic Trends
Product profile
Change in consumption pattern
Revival of sick units
What are the steps in identifying business opportunities?
Preliminary evaluation
Selection of product or service
28
Conduct or market survey
Contractual programs to collect sufficient information about proposed venture
Succeeding in the market
Discuss the characteristics of small enterprises.
29
A small scale unit is generally a one man show
23
 Capital investment is small and it has fewer than 10 workers
Identify the problems faced by small enterprise
Problem of skilled manpower
Inadequate credit assurance
30
Irregular supply of raw material
Absence of organized marketing
Competition from Large-scale units and imported articles.

PART – B

Discuss the important of feasibility assessment and preparation of project reports with a suitable case
1 study.
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:89
What is Business Environment? What are the methods of preparing Entrepreneurship
2 development program in detail? Ref: Entrepreneurship Development By S.S.Khanka, Pg.
No:62
Explain the meaning and scope of Market survey and Research. Discuss its role in
3 entrepreneurship. [April 2014] Ref: Entrepreneurship Development By S.S.Khanka, Pg.
No:256
What are the criteria for selecting a particular project? What are the subject matters
behind preliminary project report preparation? [April 2011] Discuss the methods of
4
project appraisal. [April 2013]. Ref: Entrepreneurship Development By S.S.Khanka, Pg.
No:102
What are all the functional risks faced by a small business? Discuss the reason for
5 Bankruptcy and remedial actions against them? [April 2010] Ref: Entrepreneurship
Development By S.S.Khanka, Pg. No:80
Discuss the importance and objective of network analysis technique with suitable
6
example. [April 2010] Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:97
Explain the meaning and scope of Market survey and Research. Discuss its role in
7 entrepreneurship. [April 2014] Ref: Entrepreneurship Development By S.S.Khanka, Pg.
No:256
Discuss the ownership structures of small business. [April 2012] Ref: Entrepreneurship
8
Development By S.S.Khanka, Pg. No:138
Discuss the classification and characteristics of small business [April 2010]. Ref:
9
Entrepreneurship Development By S.S.Khanka, Pg. No:72

UNIT IV FINANCING AND ACCOUNTING

SL.NO Need – Sources of Finance, Term Loans, Capital Structure, Financial Institution, management
of working Capital, Costing, Break Even Analysis, Network Analysis Techniques of
PERT/CPM – Taxation – Income Tax, Excise Duty – Sales Tax.
PART – A
Write the classification of financial needs.
 On the basis of extent permanence
a. Fixed Capital
1 b. Working Capital
 On the basis of period of Use
a. Long term Capital
b. Short term Capital
What is fixed capital?
2
The money invested in some fixed assets or durable assets like land, building,

24
 machinery, equipment, furniture, etc., is known as fixed capital. These assets are
required for permanent use, that is, for a long period of time.
What is working capital?
The money invested in current assets like raw material, finished goods, debtors, etc , is
3
known as working capital. In other words, money required for day-to-day operations of
business/enterprise is called ‘working capital’
What is long-term capital?
This is such money whose repayment is arranged for more than five years in future. The
4 sources of long-term finance could be owner’s equity, term-loans from financial
institutions, credit facilities from the commercial banks, hire-purchase facilities from
specific organizations, etc.
What is short-term capital?
This is a borrowed capital/money that is to be repaid within one year. The sources of
5
short-term finance include bank borrowings for working capital, deposits or borrowings
from friends and relatives, etc
What are the sources of finance?
Internal sources – funds are raised from within the enterprise itself (owner’s equity,
deposits, and loans)
6
External sources – funds raised other than internal sources (Increasing trade credit,
factoring, venture capital, debentures, bank loans)

What is term loan?

The loans which taken for a definite period of time are called ‘term loans’. Based on
7
period, loans are classified into two types. They are 1. Short-term loans 2. Long-term
loans.
List the sources of short-term finance.
 Commercial Bank
 Public Deposits
 Trade credits
 Factoring
8
 Discounting of Bills
 Trade Credit
 Factoring
 Discounting of Bills
Bank over draft
Define capital structure
It means the permanent financing of the enterprise represented primarily by long-term
9
sources of funds, i.e., debt and equity. Thus it excludes funds raised from short term
resources
Write any two features of capital structure
10  It should involve the minimum cost and the maximum yields.
The debt should be within the repaying capacity of the enterprise
List the factors determining capital structure
1. Nature of Business
2. Size of the Enterprise
11 3. Trading on Equity
4. Cash Flows
5. Purpose of Financing
Provision for future
25
 What are the types of financial institutions?
1. Commercial Bank
2. State Financial Corporation (SFC)
12 3. State Industrial and Investment Corporations
4. Industrial Development bank of India
5. Industrial Finance Corporation of India Ltd.

What are the functions of SFC?

 Promotion of self-employment
13  To finance expansion, modernization, and up gradation of technology in the
existing units
Providing short-term loan to cover the equity gap to help small-scale industrial units
Define working capital
Working Capital (or) Net Working Capital is represented by the excess of current assets
14 over current liabilities and identifies the reliability liquid Portion of total enterprise
capital which constitutes a margin of buffer for maturing obligations within the ordinary
operating cycle of the business
What are the concepts of working capital?
Gross Working Capital
15
Net Working Capital

What is gross working capital?

Gross Working Capital is the amount of funds invested in the various components of
16
current assets. The working capital is a financial concept. Thus, Gross working capital =
Total current assets.
List some current assets
1. Cash in hand and at bank
17
2. Sundry debtors less provision
Bills receivables
List some current liabilities.
1. Sundry Creditors
18 2. Bills payable
3. Outstanding Expenses

State operating cycle

19 It is the average time intervening between the acquisition of materials (or) services
entering the process and final cash realization
What are the types of working capital?

20  Fixed working capital

Variable working capital
What is fixed working capital?
21 Fixed working capital is the minimum amount of working capital required to ensure
effective utilization of fixed assets and support to the normal operation of the business

What is variable working capital

Variable working capital is the amount of working capital which keeps on fluctuating
22
from time to time on the basis of business activities. It is intended to meet seasonal
demands and some special exigencies
23 Write any five factors determining working capital
26
  Nature of Business
 Terms of Credit
 Volume of sales
 Turnover of Inventories
Production Cycle
List any five sources of working capital
 Loans from commercial banks
 Provision for taxation
24  Bank Credit and overdraft
 Accrual accounts
 Discounting bills of exchange.

What is working capital management

25 Working capital management is concerned with the administration of all current assets
and current liabilities. It is an integral part of overall corporate management
What is opportunity costing?
Costing is the process of determining the cost of doing something. By opportunity cost,
26 we mean the expected (or) benefit forgone in rejecting one course of action for another.
When rejecting one course of action, the rejected alternative becomes the opportunity
cost for the alternative accepted
What is break-even Point?
The break-even Point establishes the level of output, production which evenly breaks
the costs and revenues. It is the level of production at which the turnover just covers the
27
fixed overheads and the ‘Unit starts making profits’. The break even analysis also
determines the margin of safety, i.e., excess of budgeted (or) actual sales over the break
even sales.
Write note on critical path method. What do you mean by activity and event?
The critical path method (CPM) is a graphical network diagram that focuses on
28 identifying the Potential bottlenecks in a project schedule. An activity is a time-
consuming effort that is required to perform part of a project. An event is the end of one
activity and the beginning of another.

Write notes on slack

A slack (in PERT) (or) float (in CPM) is the time to spare, the time over which the
29 activity may be delayed without affecting the overall completion of the project. It may
be Positive or negative. Positive slack represents idle time resources whereas negative
slack occurs when the project requires more resources than are normally available.

Define sales tax and Excise duty

Sales tax is an indirect tax. It is levy on purchase and sale of goods in India. Sales tax is
30 levied under authority of both central legislation and state governments i.e., Central
sales tax and local sales tax. Excise duty is any duty (or) tax levied upon the
manufacture (or) sale (or) consumption of commodities within the country

PART – B

Business model defines what a business does and how it makes money doing that. there is a long list of
1 traditional business model and recent shift to new business model with 2 examples. Ref:
Entrepreneurship Development By S.S.Khanka, Pg. No:110
Elaborate the various sources of funding available for entrepreneurs in automobile sector in india Ref:
2
Entrepreneurship Development By S.S.Khanka, Pg. No:106
27
 Discuss the objectives and purposes of capital structure. What are the new behavioral
3 issues in Capital Structure Systems?
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:112
What is cost-volume-profit analysis? State its role and significance in Management
4 accounting. [April 2014]
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:
What are all India Financial Institutions that meet the financial needs of the
5 entrepreneurs? –Explain. [April 2013]
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:108
Explain the sources of short-term finance. [April 2013]
6
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:110
Discuss the sources of finance for an entrepreneur. Also provide the strategies for the
7 suitable capital structure for a calculated risk business. [April 2012
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:113
Define working capital. Distinguish between Gross and Networking capital. What are
8 the major determinants of working capital requirements of an Entrepreneur? [April 2011
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:207

UNIT V STATE VARIABLE ANALYSIS

State space representation of Continuous Time systems – State equations – Transfer function
SL.NO from State Variable Representation – Solutions of the state equations - Concepts of
Controllability and Observability – State space representation for Discrete time systems.
Sampled Data control systems – Sampling Theorem – Sampler & Hold – Open loop & Closed
loop sampled data systems.
PART – A
Define Industrial Sickness.
The Sick Industrial Companies (special provisions) Act, (SICA), 1985 defines a sick
industry as "an industrial company (being a company registered for not less than seven
1
years), which has at the end of financial year accumulated losses equal to or exceeding
its entire net worth and has also suffered from cash losses in such financial year
immediately preceding such financial year
List the process of Industrial sickness.
a. Normal Unit
2 b. Tending Towards Sickness
c. Incipient Sickness
Sickness
Write signals of Industrial Sickness.
i) decline in capacity utilization;
ii) shortages of liquid funds to meet short-term financial obligations;
iii) inventories in excessive quantities;
iv) non-submission of data to banks and financial institutions;
v) irregularity in maintaining bank accounts;
3 vi) frequent breakdowns in plants and equipment;
vii) decline in the quality of product manufactured or service rendered;
viii) delay or default in the payment of statutory dues such as provident fund,
sales tax, excise duty, employee's state insurance, etc.
ix) decline in technical deficiency; and
x) frequent turnover of personnel in the industry.

What are the symptoms of Industrial Sickness?

4
i) Persisting shortage of cash;
28
 ii) deteriorating financial ratios;
iii) widespread use of creative accounting;
iv) continuous tumble in the prices of the shares;
v) frequent request to banks and financial institutions for loans;
vi) delay and default in the payment of statutory dues;
vii) delay in the audit of annual accounts; and
viii) morale degradation of employees and desperation among the top and
middle management level.
Brief the two causes for industrial sickness.
 Internal (or) Endogenous Causes: relate to organization, structure, production
5 channel, distribution channel, technical know-how, etc.
 External (or) Exogenous Causes: Changes of Government POlicy, lack and
shortage of demand for the product are the cause of external factors.
Write any four internal causes of industrial sickness.
 Poor management prevailing in the industry
6  Poor quality maintenance and production capacity
 Poor utilization of capacity
 Lack of managing strategies.
Write any four external causes of industrial sickness.
 Shortage of working capital
7  Continuous industrial strikes and labor unrest
 Recessionary trends hovering in the economy
 Lack and shortage of demand for the product.
What are the causes of slow growth of Industrial Entrepreneurship in India?
 Improper Policy
8
 Change of government
 Environment Factor etc.
What are the important Government Policies?
 The generation of immediate employment opportunity with relatively low
9
investment.
 The promotion of more equitable distribution of national income.
What is BIFR?
The Board of Industrial and Financial Reconstruction (BIFR) is an agency of the
10 government of India, Part of the department of financial service of the Ministry of
Finance. Its objective is to determine sickness of industrial companies and to assist in
reviving those that may be viable and shutting down the others.
What are the stages of Growth?
 Startup stage
 Growth stage
11
 Expansion stage
 Maturity stage
Decline stage
List the types of Growth strategies.
 Internal Growth Strategies
o Expansion
o Diversification
12
 External Growth Strategies
o Joint Ventures
o Mergers
o Sub Contracting
29
 State the growth strategies in small Industry.
 Market segmentation
 Leveraging partnerships
13  Use checklists
 Acquisitions
 Become a leader in the industry.
Not every strategy will be right but some of these might offer an opportunity.
What is the difference between expansion and diversification?

SI No Expansion Diversification

1 Expansion is one of the forms Diversification involves selling a

of internal growth of business. new product to a new product.
It means enlargement or
increase in the same line of
14
activity.

2 The enterprise grows its own Even though knowledge bases

without joining hands with any appear to be new, some
other enterprise. diversification strategies are best
explained through a discussion of
the value-added chain.

What are the three forms of Expansion?

 Penetration Strategy
15
 Market development strategy
Product development strategy.
Define the term magnitude?
16 An order of magnitude is an exponential change of plus or minus 1 in the value of a
quantity or unit. The term is generally used in conjunction with the Power of 10.
What are the three types of Diversification?
 Backward Integration
17
 Forward Integration
Horizontal Integration
Define Franchising.
A franchise is a form of business ownership created by contract where by a company
18
grants a buyer the rights to engage in selling (or) distributing its products (or) services
under a prescribed business format in exchange for royalties (or) shares of profits.
What are the types of Franchising?
 Territorial Franchise
 Operating Franchise
19  Mobile Franchise
 Distributorship
 Co-ownership
 Leasing
What are the types of Franchiser?
20
 Manufacturers and wholesalers

30
  Manufacturers and Retailers
 Wholesalers and Retailers
Retailers and Retailers
What are the contents of Franchise Agreement?
 Premises
 Legal requirements
21  Building and construction
 Equipment
 Book-keeping, Finance and Organization
General Information.
Define Joint Venture.
22 A joint venture is a strategic alliance where two (or) more people (or) companies agree
to contribute goods, services and (or) capital to a common commercial enterprises.
List any four content of joint venture agreement?
 The parties involved
23  The objectives of the joint venture
 Financial contributions
Intellectual properly developed by the participant in the joint venture.
When companies do prefer joint ventures?
Joint ventures may involve companies in one (or) more countries. International joint
ventures in particular are becoming more Popular, especially in capital-intensive
24
industries such as oil and gas exploration, mineral extraction, and metal processing.
Joint ventures become more attractive as a way to share risks and costs and create scale
economies.
What is the difference between merger and acquisition?

SI No Merger Acquisition

1 A transaction involving two (or) An acquisition is the purchase of an

25
more companies in the exchange entire company (or) part of a
of securities and only one company by definition the company
company survives. is completely absorbed and no longer
exists independently.

What are the types of merger?

 Horizontal Merger
26
 Vertical Merger
Conglomerate Merger
What is conglomerate merger?
Conglomerate merger is a type of combination which a firm established in one industry
27
combines with another firm in another unrelated industry. Such merger move for
diversification of risk constitutes the rational.
What is Sub-Contracting?
Sub-contracting is a type of work contract that seeks out source certain types of work to
28
other companies. Sub-contracting is done when the general contractor does not have the
time (or) skills to perform certain skills.
Define venture capital. Mention any two sources from which it can be received.
29 Venture capital funds made available for startup firms and small businesses with
exceptional growth Potential management and technical expertise are often also
31
 provided it also called risk capital. Sources from which it can be received are: 1. Venture
capitalist 2. Financial institutions like Bank, IFCI, SBI, ICICI, etc.
What are the factors covered in the final contract?
 Detail Contract Agreement
 Agreement Deed
30  Consideration
 Time Period
 Purpose of Contract
Person Involved etc.

PART – B

Discuss about how expansion plans, Diversification and ventures help the growth of the business in auto
1 sector. Nov 2017
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:315
Enumerate the government of India Policy for small scale enterprises with examples. Nov 2017
2
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:177
What is Diversification? Discuss the basis of diversification in entrepreneurship. [April
3 2014]
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:316
Explain joint venture and Merger. [April 2015]
4
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:317
Describe the government Policy for small scale enterprises to supPOrt the entrepreneur.
5 [April 2012
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:177
Explain the concept of Industrial sickness and the magnitude of sickness problem of
6 SMEs (Small and Medium Enterprises) in India during 10th plan period. [April 2011
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:326
Discuss the features of Sick Industrial Companies Act 1985 and the measures taken and
7 suggestions of the Act. [April 2011]
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:322
Illustrate the cause and consequences of sickness in small business. Suggest measures to
8 overcome such sickness [April 2010
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:333
What are the financial risks faced by a small business? Discuss the reason for
9 Bankruptcy and remedial actions against them. [April 2010
Ref: Entrepreneurship Development By S.S.Khanka, Pg. No:72

32