In this Post we have uploaded New Venture Planing Solved Question Paper 2022, B.Com 3rd Sem Gauhati University (GU) Solved paper. which Can be Very Useful For Your GU B.Com 3rd Semester New Venture Planing Sessional or Final Semester Examination. B.com 3rd New Venture Planing Solved Question paper 2022 in PDF Gauhati University (GU).
Guwahati University BCom 3rd semester New Venture Planing Solved question paper 2022
2022
COMMERCE
(Skill Enhancement Course)
(New Venture Planning)
Paper: COM-SEC-3024
Full Marks: 50
Time: Two hours.
OPTION-B
The figures in the margin indicate full marks for the questions.
1. Choose the correct option from the following: (any four) 1×4=4
(a) Which of the following is correct ?
Entrepreneurial = Creativity
(i) Innovation + Creativity
(ii) Creativity + Entrepreneurial Action
(iii) Innovation + Imagination
(iv) Thinking + Perception
(b) Which of the following could be strength of an enterprise?
(i) Goodwill
(ii) New International Market
(ii) Price that is too high
(iv) Location of a business
(c) Which of the following is an important source of idea generation due to their familiarity with market needs?
(i) Federal Government
(ii) Consumers
(iii) Distribution Channel
(iv) Existing Products and Services
(d) McDonald's' is an example of 'McDonald's '
(i) contract
(ii) franchising
(ii) joint venture
(iv) partnership
(e) Section defines copyright under the Copyright Act, 1957.
(i) 15
(ii) 14
(ii) 12
(iv) 3
(f) How long a patent is valid in India?
(i) 30 years
(ii) 20 years
(iii) 40 years
(iv) 60 years
(g) Which of the following is not a feature of venture capital investments?
(i) High Risk
(ii) Lack of Liquidity
(iii) Informal Investor
(iv) Participation of Venture Capital suppliers in management
(h) 'State Financial Corporation' is an example of
(i) Industrial Bank
(ii) Foreign Bank
(ii) Public Sector Bank
(iv) All of the above
2. Write short answer : (any three )2×3=6
(a) Define opportunity identification process.
Ans:- Opportunity Identification Process:
The opportunity identification process is a systematic approach that entrepreneurs and businesses use to identify potential business opportunities or ideas for new products, services, or ventures. It involves recognizing gaps in the market, understanding customer needs and preferences, analyzing industry trends, and evaluating the feasibility and profitability of potential opportunities. This process often includes market research, brainstorming, problem-solving, and creativity to discover and assess business prospects.
(b) What is 'bootstrapping'?
Ans:- Bootstrapping:
Bootstrapping in business refers to the practice of starting and growing a company with minimal external funding or capital. Entrepreneurs who bootstrap their businesses rely on their own resources, personal savings, revenue generated by the business, and creative cost-saving measures to fund and expand their ventures. Bootstrapping is characterized by self-reliance and a focus on sustainability without taking on significant debt or seeking outside investors.
(c) What is copyright ?
Ans:- Copyright:
Copyright is a legal protection granted to the creators of original creative works, such as literary, artistic, musical, and intellectual creations. It provides creators with exclusive rights to reproduce, distribute, perform, and display their works for a specific duration. Copyright is designed to incentivize creativity and allows creators to control and benefit from their creations. In many countries, copyright is automatically granted when a work is created and fixed in a tangible medium, such as writing, painting, or recording.
(d) Define business incubator.
Ans:- Business Incubator:
A business incubator is an organization or facility that provides support, resources, and guidance to early-stage startups and entrepreneurs to help them develop and grow their businesses. Incubators offer a range of services, including access to office space, mentorship, networking opportunities, funding assistance, training, and business development resources. The primary goal of a business incubator is to accelerate the growth and success of startups by providing a supportive and nurturing environment
(e) What is sale forecasting?
Ans:- Sales Forecasting:
Sales forecasting is the process of predicting future sales or revenue for a business based on historical sales data, market trends, and other relevant factors. It helps businesses make informed decisions about inventory management, production planning, budgeting, and overall business strategy. Sales forecasts can be short-term or long-term and are essential for effective financial planning and resource allocation.
(f) What is business plan?
Ans:- Business Plan:
A business plan is a comprehensive document that outlines a company's goals, strategies, financial projections, and operational plans. It serves as a roadmap for the business and provides a structured framework for entrepreneurs and stakeholders to understand and communicate the company's vision and objectives. A typical business plan includes sections on the company's mission and vision, market analysis, product or service description, marketing and sales strategies, financial forecasts, management team, and implementation timelines. Business plans are often used to secure funding from investors or lenders and guide the growth and development of the business.
3. Write answers to the following : (any two) 5x2=10
(a) Explain in brief five sources of new business idea in North-East India.
Ans:- Five Sources of New Business Ideas in North-East India:
1. Cultural and Traditional Crafts: The North-East region of India is rich in diverse cultures and traditions. Entrepreneurs can explore business ideas related to traditional crafts, handloom, and artisanal products. Promoting and marketing these unique regional products can create both local and export opportunities.
2. Agro-Based Ventures: North-East India has fertile land and favorable climatic conditions for agriculture. Entrepreneurs can consider ventures related to organic farming, tea and spice cultivation, and horticulture. These agricultural activities can tap into growing markets for organic and specialty products.
3. Tourism and Hospitality: The region's natural beauty, wildlife, and cultural diversity make it a potential hotspot for tourism. Entrepreneurs can start businesses in hospitality, ecotourism, adventure tourism, or travel services to cater to the increasing number of tourists visiting the North-East.
4. Renewable Energy: Given its hilly terrain and abundant water resources, the North-East can harness renewable energy sources like hydropower, solar, and wind energy. Entrepreneurs can explore opportunities in renewable energy generation and distribution to meet local energy needs and contribute to sustainability.
5. Healthcare and Wellness: The healthcare sector in North-East India presents opportunities for setting up clinics, wellness centers, and healthcare-related businesses. This includes traditional medicine practices like Ayurveda, which are popular in the region.
(b) Discuss five advantages of starting own business.
Ans:- Five Advantages of Starting Your Own Business:
1. Independence and Control: Entrepreneurs have the autonomy to make decisions and shape the direction of their business. They have control over business operations, strategy, and decision-making processes.
2. Financial Potential: Successful businesses can generate significant profits and financial rewards. Entrepreneurs have the potential to build wealth and financial security through their ventures.
3. Creativity and Innovation: Running a business allows individuals to innovate, create new products or services, and solve problems. It encourages creativity and offers opportunities for personal and professional growth.
4. Flexibility: Business owners have the flexibility to set their own schedules and work on projects they are passionate about. This flexibility can improve work-life balance and reduce the constraints of a traditional 9-to-5 job.
5. Legacy Building: Entrepreneurs have the opportunity to leave a lasting legacy by building a successful business that can be passed down to future generations or sold for a profit.
(c) Distinguish between Angel Investor and Venture Capital Investor.
Ans:- Distinguishing Between Angel Investor and Venture Capital Investor:
Angel Investor:
- Angel investors are typically individuals who invest their personal funds in early-stage startups or businesses.
- They often provide capital in the form of equity or convertible debt to help startups get off the ground.
- Angel investors tend to have a more hands-on approach and may offer mentorship and guidance to the entrepreneurs they invest in.
- Investments by angel investors are usually made at the seed or early stages of a business's development.
- Their investment decisions may be influenced by their belief in the entrepreneur's vision and passion.
Venture Capital Investor:
- Venture capital investors are usually firms or institutions that manage pooled funds from multiple investors, including high-net-worth individuals, pension funds, and corporations.
- They invest in startups and high-growth companies in exchange for equity, often at a later stage than angel investors.
- Venture capital firms typically have a more structured investment process and may have specific industry focuses.
- They often provide larger amounts of capital and can support businesses through multiple rounds of funding.
- Venture capital investors often seek a more significant influence over the companies they invest in, including representation on the board of directors.
(d) State the various factors influencing the pricing policy.
Ans:- Factors Influencing Pricing Policy:
Pricing policy in business is influenced by a variety of factors. Here are some key factors that can affect a company's pricing decisions:
1. Costs: The most fundamental factor is the cost of producing or acquiring the product or service. Pricing must at least cover these costs to ensure profitability.
2. Demand and Supply: Market conditions, including the level of demand and the availability of supply, can impact pricing. High demand relative to supply often allows for higher prices.
3. Competitors: The pricing strategies of competitors play a significant role. A company may choose to price its products lower or higher depending on what competitors are doing.
4. Customer Perception: Customer perceptions of the product's value and quality influence pricing. Premium products can command higher prices if customers perceive them as superior.
5. Market Segmentation: Companies may adjust prices based on different customer segments. For example, offering discounts to students or senior citizens.
6. Elasticity of Demand: The price elasticity of demand measures how responsive demand is to price changes. Inelastic goods can tolerate price increases, while elastic goods may see reduced demand with price hikes.
7. Government Regulations: Price controls and regulations can limit a company's ability to set prices, especially in industries like healthcare and utilities.
8. Economic Conditions: The overall economic environment, including inflation, interest rates, and consumer spending power, can impact pricing decisions.
9. Brand Image: Strong brand equity can support premium pricing, while a weaker brand may require lower prices to compete.
10. Distribution Channels: The cost and efficiency of distribution can affect pricing. Selling through multiple channels may involve different price points.
(e) Write notes on limited liability partnership.
Ans:- Limited Liability Partnership (LLP) - Notes:
A Limited Liability Partnership (LLP) is a unique form of business structure that combines the benefits of a partnership and a corporation. Here are some key points about LLPs:
1. Limited Liability: One of the primary advantages of an LLP is that its partners enjoy limited liability. This means that individual partners are not personally liable for the debts and liabilities of the LLP. Their liability is limited to the amount they have invested in the business.
2. Legal Entity: An LLP is considered a separate legal entity, distinct from its partners. It can own property, enter into contracts, and sue or be sued in its own name.
3. Flexibility: LLPs offer flexibility in management and operations. Partners can decide how they want to manage the business and distribute profits. There is no strict requirement for a board of directors or shareholders.
4. Taxation: LLPs are typically taxed as pass-through entities, similar to partnerships. This means that profits and losses pass through to the individual partners, who report them on their personal tax returns.
5. Regulations: LLPs are regulated by the LLP Act, which varies from country to country. In India, the Limited Liability Partnership Act, 2008, governs the formation and operation of LLPs.
6. Perpetual Existence: LLPs have perpetual existence, meaning they can continue to operate even if one or more partners leave or pass away.
7. Audit Requirements: Depending on the size and turnover of an LLP, it may be required to undergo regular audits as per regulatory guidelines.
(f) State five alternative sources of financing to Indian entrepreneurs.
Ans:- Five Alternative Sources of Financing for Indian Entrepreneurs:
1. Venture Capital: Venture capital firms provide equity capital to high-potential startups and early-stage companies. They often offer not only funding but also mentorship and guidance.
2. Angel Investors: Angel investors are high-net-worth individuals who invest their personal funds in startups. They often play a hands-on role and provide valuable business expertise.
3. Crowdfunding: Crowdfunding platforms allow entrepreneurs to raise funds from a large number of individuals or small investors online. This can be used for various purposes, including product development and expansion.
4. Government Schemes and Grants: Various government initiatives in India offer financial support, subsidies, and grants to promote entrepreneurship and specific industries.
5. Peer-to-Peer (P2P) Lending: P2P lending platforms enable entrepreneurs to borrow money from individuals or groups of investors. This can be an alternative to traditional bank loans.
4. Write any three answers from the following: 10x3=30
(a) Define creativity process. Explain the role of creative thinking in entrepreneurship.
Ans:- Creativity Process and the Role of Creative Thinking in Entrepreneurship:
Creativity Process: The creativity process refers to the series of mental and cognitive steps that individuals go through to generate innovative and original ideas. It involves breaking away from conventional thinking patterns, making novel connections, and producing unique solutions to problems. The creativity process typically includes stages like preparation, incubation, insight, evaluation, and elaboration.
Role of Creative Thinking in Entrepreneurship:
Creative thinking plays a vital role in entrepreneurship for several reasons:
1. Idea Generation: Entrepreneurship often begins with identifying new business opportunities and innovative ideas. Creative thinking helps entrepreneurs come up with unique product or service concepts that can address market needs.
2. Problem Solving: Entrepreneurs encounter various challenges during the startup phase and beyond. Creative problem-solving allows them to find unconventional solutions to overcome obstacles and adapt to changing circumstances.
3. Differentiation: In competitive markets, creative entrepreneurs can develop distinctive value propositions and branding strategies that set their businesses apart from competitors. This differentiation can lead to market success.
4. Innovation: Innovation is a cornerstone of entrepreneurship. Creative thinking drives the development of new technologies, processes, and business models that disrupt existing industries and create new ones.
5. Adaptation: Entrepreneurship requires the ability to adapt to evolving market conditions. Creative entrepreneurs can pivot their business strategies and seize new opportunities as they arise.
6. Risk Management: Creative thinking can help entrepreneurs anticipate risks and devise strategies to mitigate them, reducing potential negative impacts on the business.
(b) What is trademark ? Explain the procedure for registration of trademark.
Ans:- Trademark and Procedure for Registration:
Trademark: A trademark is a legally registered symbol, logo, word, phrase, or design that distinguishes and identifies a product or service as originating from a specific source. It protects the brand identity and helps consumers differentiate between products or services in the market.
Procedure for Registration of Trademark in India:
1. Trademark Search: Conduct a trademark search to ensure that the proposed trademark is not already registered by someone else. This can be done online through the Indian Trademark Office's website.
2. Trademark Application: File a trademark application with the Indian Trademark Office. The application can be submitted online or in physical form. It should include details about the applicant, the trademark, and the goods or services for which the trademark is intended.
3. Examination: The Trademark Office will examine the application to verify its compliance with legal requirements. If there are any objections or issues, the applicant may need to respond to the examination report.
4. Publication: If the application meets all requirements and there are no objections, it will be published in the Trademark Journal for a period of four months. During this time, third parties can oppose the registration.
5. Registration: If no opposition is received, or if opposition is unsuccessful, the trademark will be registered, and a registration certificate will be issued. The trademark is then protected for ten years, with the option to renew indefinitely.
(c) How does venture capital investor help entrepreneurs in economic development of the country? Explain with suitable examples.
Ans:- Venture capital investors play a significant role in the economic development of a country in several ways:
1. Funding Innovation: Venture capitalists provide funding to innovative startups that have the potential to disrupt industries and create new markets. This investment in innovation drives economic growth by fostering technological advancements and market expansion.
2. Job Creation: Successful startups, fueled by venture capital, often experience rapid growth. This growth leads to the creation of new jobs and employment opportunities, reducing unemployment rates and contributing to economic stability.
3. Wealth Creation: Venture capital-backed startups can achieve substantial valuations and profitability. This wealth creation benefits not only entrepreneurs but also investors, employees, and stakeholders, resulting in increased overall prosperity.
4. Economic Diversification: Venture capital encourages diversification by supporting businesses in various sectors. This diversification strengthens the overall economy, reduces dependency on specific industries, and enhances resilience against economic downturns.
5. Global Competitiveness: Venture-backed startups often expand internationally, enhancing a country's global competitiveness. They bring in foreign revenue, strengthen trade relationships, and raise the country's profile in the global business landscape.
Example: In India, venture capital has played a crucial role in the development of the technology sector, particularly in cities like Bengaluru. Investments in startups like Flipkart, Ola, and Paytm have not only driven economic growth but also established India as a hub for technology and e-commerce innovation. These startups have created thousands of jobs and attracted foreign investment, contributing significantly to the country's economic development.
(d) State the various techniques of sales forecasting. Which technique is suitable for forecasting 'FMCG' products? Explain.
Ans:- Various Techniques of Sales Forecasting:
Sales forecasting is essential for businesses to plan their operations, manage inventory, and allocate resources effectively. Several techniques are used for sales forecasting, and the choice of technique depends on the nature of the product or industry. For forecasting Fast-Moving Consumer Goods (FMCG) products, one suitable technique is Time Series Analysis, specifically Exponential Smoothing.
1. Time Series Analysis: Time series analysis involves using historical sales data to predict future sales. It includes various methods such as moving averages, exponential smoothing, and autoregressive integrated moving average (ARIMA) modeling. Exponential smoothing is suitable for FMCG products.
- Exponential Smoothing: Exponential smoothing is a forecasting method that assigns different weights to different time periods, giving more importance to recent data. This technique is suitable for FMCG products because it accounts for short-term fluctuations and seasonality often observed in fast-moving consumer goods. FMCG products often have demand patterns that change quickly due to factors like seasonality, promotions, and consumer trends. Exponential smoothing adapts well to these changing patterns and provides relatively accurate short-term forecasts.
(e) What are the factors that influence the competitive advantage? Discuss the 'research and development' as a major source of competitive advantage.
Ans:- Factors Influencing Competitive Advantage and the Role of Research and Development (R&D):
Competitive advantage refers to a company's ability to outperform its rivals in the marketplace, achieving higher profitability and market share. Several factors can influence competitive advantage, and research and development (R&D) is a major source of this advantage. Here are key factors and the role of R&D:
1. Innovation: Innovation is a fundamental factor. R&D activities lead to the development of new products, services, and processes. Innovation can create a unique selling proposition that sets a company apart from competitors.
2. Quality: Continuous improvement through R&D helps in enhancing product quality, meeting customer expectations, and reducing defects or errors, which can result in higher customer satisfaction and brand loyalty.
3. Cost Efficiency: R&D can lead to process improvements and cost-reduction measures. Companies that invest in R&D can achieve cost advantages over competitors.
4. Market Understanding: R&D activities involve market research and consumer insights. Understanding customer needs and preferences allows a company to tailor its products or services to the target market, gaining a competitive edge.
5. Technology Adoption: Staying at the forefront of technological advancements through R&D allows a company to adopt cutting-edge tools and methods, making operations more efficient and products more competitive.
6. Product Differentiation: R&D can lead to the development of unique features or capabilities that distinguish products from those of competitors. This differentiation can command premium prices.
7. Speed to Market: R&D helps companies bring new products to market faster. Being the first to offer a novel solution can create a significant competitive advantage.
8. Brand Reputation: Consistently delivering innovative, high-quality products or services builds a strong brand reputation, fostering customer trust and loyalty.
9. Sustainability: R&D can lead to the creation of environmentally friendly products or processes, meeting growing consumer demand for sustainability and ethical business practices.
10. Global Expansion: R&D can enable companies to adapt products for international markets or develop solutions that cater to global needs, expanding the customer base.
(f) Why is preparation of business plan necessary? Describe in detail the elements of business plan.
Ans:- The preparation of a business plan is crucial for several reasons:
1. Clarity of Vision: A business plan helps you clarify your business idea and define your goals. It forces you to think through every aspect of your business, from the concept to execution.
2. Guidance: It serves as a roadmap for your business, outlining the steps you need to take to achieve your objectives. This guidance is invaluable, especially for startups and entrepreneurs.
3. Attracting Investors and Lenders: If you seek external funding, investors and lenders often require a well-documented business plan. A compelling plan can help you secure financing more easily.
4. Resource Allocation: It assists in resource allocation, helping you determine how much capital, personnel, and other resources you need to launch and operate your business.
5. Risk Assessment: By analyzing potential risks and challenges, you can develop strategies to mitigate them. This makes your business more resilient.
6. Marketing Strategy: A business plan outlines your target market, competition, and marketing strategies. This is crucial for understanding how to position your product or service.
7. Operational Efficiency: It defines your business's operational structure, including workflows, supply chain, and logistics. This helps streamline operations and reduce inefficiencies.
Elements of a Business Plan:
1. Executive Summary: This is a concise overview of the entire business plan. It should include the business concept, market opportunity, financial projections, and the team's qualifications.
2. Business Description: Provide a detailed description of your business, including its mission, vision, and core values. Explain your business's history, legal structure, and location.
3. Market Analysis: Analyze your target market, including size, demographics, and trends. Identify your competitors and assess market gaps or opportunities.
4. Products or Services: Describe your products or services, including their features, benefits, and unique selling points. Explain how they meet customer needs.
5. Marketing and Sales Strategy: Outline your marketing plan, including pricing, promotion, distribution, and sales tactics. Include a sales forecast.
6. Management and Organization: Introduce your management team and their qualifications. Detail the organizational structure and roles within the company.
7. Funding Request: If seeking external funding, specify the amount you need and how you plan to use it. Provide financial projections and a repayment plan for loans or investments.
8. Financial Projections: Include income statements, balance sheets, cash flow projections, and break-even analysis. These projections should cover at least the next three to five years.
9. Appendix: Include any additional information or documents that support your business plan, such as resumes of key team members, market research data, or legal documents.
(g) What is a franchise agreement? Write a note on franchising law in India.
Ans:- A franchise agreement is a legal contract between the owner of a brand or business (the franchisor) and an individual or entity (the franchisee) who is granted the right to operate a business using the franchisor's brand, products, and business model. In exchange for this right, the franchisee typically pays fees and royalties to the franchisor and agrees to follow the franchisor's established business practices and standards.
In India, franchising is a popular and growing business model, particularly in industries like fast food, retail, and education. The key aspects of franchising law in India include:
1. No Specific Franchise Law: India does not have a specific franchise law, but franchising is governed by various laws and regulations related to contracts, intellectual property, and consumer protection.
2. Contract Law: Franchise agreements in India are primarily governed by the Indian Contract Act, 1872. This act sets out the general principles for forming and enforcing contracts.
3. Competition Law: The Competition Act, 2002, ensures that franchising arrangements do not lead to anti-competitive practices or abuse of market dominance. Franchisors must be mindful of not engaging in unfair trade practices.
4. Intellectual Property Rights (IPR): Franchising often involves the use of trademarks, copyrights, and patents. India has specific laws to protect intellectual property rights, such as the Trademarks Act, Copyright Act, and Patents Act.
5. Consumer Protection Laws: Franchise agreements should adhere to consumer protection laws to ensure fairness and transparency in dealings with consumers.
6. Foreign Exchange Regulations: If the franchisor is foreign-based, there may be regulations concerning foreign exchange and repatriation of royalties.
7. Taxation: Tax laws in India, including Goods and Services Tax (GST), may apply to franchise fees and royalties, so franchisors and franchisees need to understand their tax obligations.
(h) Define Intellectual Property Rights. Explain the importance of Intellectual Property Rights.
Ans:- Intellectual Property Rights (IPR) refer to legal rights that protect creations of the human mind and intellect. These creations can include inventions, literary and artistic works, symbols, names, and images used in commerce. The purpose of IPR is to grant exclusive rights to creators and inventors, allowing them to control and benefit from their creations while promoting innovation and creativity.
The key types of intellectual property rights include:
1. Copyright: Protects original literary, artistic, and musical works, giving creators the exclusive right to reproduce, distribute, and adapt their works.
2. Trademarks: Safeguards unique signs, symbols, or words used to distinguish goods or services, preventing others from using confusingly similar marks.
3. Patents: Grants inventors exclusive rights to their inventions, preventing others from making, selling, or using the invention without permission.
4. Trade Secrets: Protects valuable business information and practices that are not publicly disclosed, such as customer lists, manufacturing processes, and formulas.
5. Industrial Designs: Protects the unique visual design of industrial products, ensuring others cannot copy the appearance of a product.
Importance of Intellectual Property Rights:
1. Incentive for Innovation: IPR provides creators and inventors with the incentive to invest time, resources, and effort into developing new ideas, products, and technologies, as they can expect to reap financial rewards and recognition.
2. Economic Growth: Strong IPR protection fosters economic growth by encouraging entrepreneurship, attracting investment, and promoting the development of innovative industries.
3. Consumer Protection: Trademarks and copyrights help consumers identify genuine products and avoid counterfeits, ensuring product quality and safety.
4. Cultural Preservation: Copyright protection supports the preservation and dissemination of cultural and artistic works, as creators are incentivized to produce and share their creations.
5. International Trade: IPR protection is crucial in international trade, as it allows businesses to protect their brands and technologies when expanding globally, contributing to international economic relations.
6. Technological Advancement: Patents and trade secrets protect technological advancements, enabling companies to maintain a competitive edge and drive further innovation.
7. Job Creation: Industries built on intellectual property often create jobs in research, development, production, and marketing, contributing to overall employment.
-0000-
Also Read :- GU B.Com 3rd Sem All Question Papers, Solved & PDF