GU Entrepreneurship Solved 2024 Question Paper [Gauhati University FYUGP BCom 3rd Semester]

In this post, we have shared the Gauhati University (GU) Entrepreneurship Solved Question Paper 2024 PDF for B.Com NEP FYUGP 3rd Semester students. This paper is especially beneficial for all major students of Gauhati University who are preparing for their Entrepreneurship exam. So, read this post thoroughly to download and get familiar with the 2024 Entrepreneurship Solved question paper pattern, types of questions asked, and marks distribution.

Gauhati University FYUGP NEP BCom 3rd Semester

1 (Sem–3) BCM 02

2024

COMMERCE

Paper: BCM 0300204

(Entrepreneurship)

Full Marks: 60

Time: 2½ hours

The figures in the margin indicate full marks for the questions.

Answer either in English or in Assamese.

1. Answer the following as directed: 1×8=8

(a) Which one of the following is not a trait of an entrepreneur?
(i) Vision
(ii) Conservatism
(iii) Innovation
(iv) Risk bearing
Answer: (ii) Conservatism

(b) The investment limit in plant and machinery or equipment for a small enterprise is:
(i) One crore rupees
(ii) Five crore rupees
(iii) Ten crore rupees
(iv) Fifty crore rupees
Answer: (iii) Ten crore rupees

(d) A one-page business plan is known as:
(i) Comprehensive plan
(ii) Business pitch
(iii) Business idea
(iv) None of the above
Answer: (ii) Business pitch

(e) What is the MSME Public Procurement Portal called?
(i) MSME Sampark
(ii) MSME Samdesh
(iii) MSME Samjhauta
(iv) MSME Sambandh
Answer: (iv) MSME Sambandh

(f) Richard Cantillon coined the term 'intrapreneur'.
(State whether True or False)
Answer: False (He coined the term 'entrepreneur'; 'intrapreneur' was coined later by Gifford Pinchot.)

(g) Write the full form of NSIC.
Answer: National Small Industries Corporation

(h) Every product or service is the outcome of an idea.
(State whether True or False)
Answer: True

2. Answer briefly any six of the following questions: 2×6=12

(a) State the importance of creative behaviour in Entrepreneurship.
Answer: Creative behaviour in entrepreneurship helps in:
i) Developing innovative products or services to meet market needs.
ii) Solving business problems in new and effective ways, giving a competitive edge.

(b) What is family business?
Answer: A family business is a type of business owned, managed, and controlled by one or more members of a family, often passed down through generations.

(c) Mention two sources of business ideas.
Answer:
i) Market research and customer feedback.
ii) Observing successful business models or franchises.

(d) Write down two features of Public Private Partnership.
Answer:
i) Involves collaboration between the government and private sector.
ii) Risks and rewards are shared between both parties.

(e) Point out the importance of Micro, Small and Medium Enterprises.
Answer:
i) MSMEs generate employment and support rural development.
ii) They promote innovation and contribute significantly to GDP and exports.

(f) In what ways marketing assistance is provided to entrepreneurs by the government?
Answer:
i) Participation in trade fairs and exhibitions.
ii) Providing subsidies for advertising and branding.

(g) Write two contents of business plan.
Answer:
i) Marketing strategy and analysis.
ii) Financial projections and funding requirements.

(h) What is an Industrial Estate Programme for entrepreneurs?
Answer: It is a government initiative that provides land, infrastructure, and facilities in one area to promote and support small and medium enterprises.

(i) State two differences between entrepreneurship and intrapreneurship.
Answer:
i) An entrepreneur owns the business, while an intrapreneur works within an existing company.
ii) Entrepreneurs take personal financial risk; intrapreneurs bear risk on behalf of the company.

(j) Mention two sources of finance for entrepreneurs.
Answer:
i) Bank loans and government grants.
ii) Angel investors and venture capitalists.

3. Answer any four of the following questions: 5×4=20

(a) Write a note on Test of Feasibility.
Answer: The Test of Feasibility refers to a process through which the viability of a proposed business idea or project is evaluated. It helps an entrepreneur determine whether the business idea can be successfully implemented in real-world conditions. This test is important to avoid risks and losses in the future.

Feasibility is assessed under several headings:

i) Technical Feasibility: This assesses whether the product or service can be produced using available technology and resources.

ii) Economic Feasibility: It examines whether the idea is financially viable, i.e., whether the costs are justified by the expected revenue.

iii) Legal Feasibility: It checks whether the business idea complies with laws and regulations, such as licenses, taxes, and environmental norms.

iv) Operational Feasibility: This ensures whether the business can run smoothly with available manpower, infrastructure, and suppliers.

v) Market Feasibility: This involves the study of demand, supply, competition, and target customers to ensure that there is a market for the product or service.

By conducting a feasibility test, entrepreneurs can make informed decisions and reduce uncertainty and risk.

(b) What are the barriers of entrepreneurship and how to overcome such barriers?
Answer: There are several barriers to entrepreneurship that hinder the growth or start of new ventures. These can be categorized into personal, social, financial, and environmental barriers:

i) Lack of Capital: Many entrepreneurs struggle to get the initial funding.
→ Overcome by: approaching banks, government schemes, or angel investors.

ii) Lack of Experience or Knowledge: A new entrepreneur may lack business management skills.
→ Overcome by: attending training programs, workshops, and getting mentorship.

iii) Fear of Failure: Many people fear losing money or being unsuccessful.
→ Overcome by: developing a positive mindset, proper planning, and risk assessment.

iv) Social and Cultural Barriers: Some societies discourage entrepreneurship, especially among women.
→ Overcome by: awareness campaigns, support from NGOs, and changing societal attitudes.

v) Regulatory Hurdles: Complicated laws, licenses, and taxes discourage startups.
→ Overcome by: simplifying legal procedures and introducing business-friendly policies.

By recognizing and addressing these barriers, more people can be encouraged to become successful entrepreneurs.

(c) What is meant by angel investors? Discuss briefly the functions of angel investors.
Answer: Angel Investors are wealthy individuals who invest their personal money into small startups or early-stage businesses in exchange for equity (ownership share) or convertible debt. They are also known as business angels.

Angel investors usually step in when businesses are in their initial stage and find it difficult to get funding from banks or venture capitalists.

Functions of Angel Investors:

i) Providing Capital: They provide much-needed financial support to entrepreneurs during the early stages of their ventures.

ii) Mentoring and Guidance: Most angel investors have business experience and provide valuable advice, strategies, and mentorship to the startup.

iii) Networking Opportunities: They help the startup connect with other investors, suppliers, or potential customers.

iv) Encouraging Innovation: By funding risky and creative ideas, angel investors encourage innovation and entrepreneurship in society.

v) Monitoring and Supervision: Angel investors may participate in major business decisions to ensure proper use of their investment.

They play a crucial role in developing startups and boosting the entrepreneurial ecosystem.

(d) Highlight a few prominent business houses in India and point out their business philosophy.
Answer: India is home to several large and respected business houses that have made a strong impact on both the Indian and global economy. A few prominent ones are:

i) Tata Group: Founded by Jamsetji Tata, the Tata Group is known for its ethical business practices and philanthropy. Its philosophy is “Leadership with Trust.” It operates in steel, automobiles (Tata Motors), IT (TCS), and other sectors.

ii) Reliance Industries: Founded by Dhirubhai Ambani, Reliance has become one of India’s largest private sector companies. It believes in scale, innovation, and efficiency. Its main areas are petrochemicals, telecom (Jio), and retail.

iii) Aditya Birla Group: Operating in textiles, cement, and financial services, it focuses on inclusive growth and sustainability. Its philosophy is “Responsible Business.”

iv) Infosys: Co-founded by Narayana Murthy, it is a global IT services company. Its core philosophy is based on transparency, innovation, and customer satisfaction.

These business houses have contributed to India’s economic growth and employment generation. Their philosophies reflect long-term vision, ethics, and social responsibility.

(e) What is entrepreneurial eco-system? State few elements of an entrepreneurial eco-system.
Answer: An entrepreneurial ecosystem refers to the network or environment that supports and nurtures entrepreneurship in a particular region or country. It includes individuals, organizations, institutions, and factors that influence the growth and success of startups and new ventures.

It provides the necessary resources, support, policies, and culture that enable entrepreneurs to innovate, start, and grow their businesses.

Key elements of an entrepreneurial ecosystem include:

i) Entrepreneurs: The central players who take initiative to start new ventures and bring innovation.

ii) Access to Finance: Includes banks, angel investors, venture capitalists, and financial institutions that provide funding.

iii) Government and Policy Support: Friendly policies, tax benefits, ease of doing business, startup schemes, and regulatory support.

iv) Support Organizations: Incubators, accelerators, NGOs, and training centers that help startups grow.

v) Educational Institutions: Universities and colleges that promote entrepreneurship education and research.

vi) Cultural and Social Norms: A society that encourages risk-taking, innovation, and respects entrepreneurship.

A strong entrepreneurial ecosystem helps increase employment, promote innovation, and boost the economic growth of the country.

(f) Explain the types of Public-Private Partnership.
Answer: Public-Private Partnership (PPP) is a cooperative arrangement between the government (public sector) and private companies (private sector) to finance, build, and operate projects like roads, hospitals, railways, and infrastructure.

There are several types of PPP models, each with different levels of responsibility and risk-sharing:

i) Build-Operate-Transfer (BOT): The private partner builds the project, operates it for a certain period to recover investment, and then transfers it to the government. Example: toll roads.

ii) Build-Own-Operate (BOO): The private party builds, owns, and operates the project permanently. Ownership stays with the private party.

iii) Design-Build-Finance-Operate (DBFO): The private party designs, builds, finances, and operates the facility, often for a long-term concession period.

iv) Lease-Develop-Operate (LDO): The private party leases an existing facility, upgrades or develops it, and operates it to earn revenue.

v) Service Contracts: Government hires a private party for specific services like cleaning, maintenance, or IT management.

PPP helps reduce the financial burden on the government and brings in private sector efficiency and innovation.

(g) State the role of family businesses and business houses in India.
Answer: Family businesses and business houses play a very significant role in the Indian economy. A family business is typically managed and owned by one or more family members, often passed down through generations.

Roles of family businesses and business houses:

i) Employment Generation: Family businesses provide jobs to a large number of people in both rural and urban areas.

ii) Economic Growth: Many of India’s large business houses like Tata, Birla, and Reliance started as family businesses and now contribute significantly to GDP.

iii) Wealth Creation: These businesses help in capital formation, wealth creation, and national development.

iv) Stability and Long-Term Vision: Family-run enterprises often focus on long-term goals and values instead of short-term profits.

v) Support for Local Communities: Many family businesses invest in social welfare, education, and healthcare under CSR initiatives.

However, they also face challenges like succession planning, conflicts, and lack of professionalism if not managed well.

(h) State the significance of business plan or project proposal.
Answer: A business plan or project proposal is a written document that outlines the objectives, strategies, market analysis, financial forecasts, and operational details of a new business or project. It serves as a roadmap for the entrepreneur and helps communicate the idea to others.

Significance of a business plan:

i) Provides Direction: It defines the goals and strategies of the business, helping the entrepreneur stay focused.

ii) Helps in Getting Funding: Investors and banks require a detailed business plan to evaluate the risk and return before providing finance.

iii) Assesses Feasibility: Through market and financial analysis, it checks whether the business idea is realistic and viable.

iv) Guides Decision-Making: Helps in taking strategic decisions regarding marketing, operations, budgeting, and expansion.

v) Attracts Partners and Employees: A clear business plan gives confidence to partners, team members, and stakeholders about the future of the venture.

A well-prepared business plan increases the chances of success and sustainability of the enterprise.

4. Answer any two of the following questions: 10×2=20

(a) Explain Business Incubators with examples. Also briefly state the role and functions of Business Incubators.
Answer: A Business Incubator is an organization that helps new and startup companies to grow by providing various support services. It is like a "nursery" for small businesses, where they get help, advice, and resources to become strong and successful.

Definition: A business incubator is a setup that supports early-stage startups by offering infrastructure, mentoring, funding access, and business services, usually at a low cost.

Examples of Business Incubators in India:

T-Hub (Hyderabad) – Supports technology-based startups.
IIT Madras Incubation Cell – Provides support to engineering and tech startups.
NSRCEL (IIM Bangalore) – Offers incubation for both profit and non-profit startups.
Startup Oasis (Jaipur) – Aims to promote rural and social innovations.

Role and Functions of Business Incubators:

1. Providing Office Space and Infrastructure: Incubators offer shared office space, internet, meeting rooms, and other facilities that reduce startup costs.

2. Business Guidance and Mentoring: They provide expert mentors who guide startups on product development, marketing, business model, and funding.

3. Access to Finance and Investors: Incubators connect startups with angel investors, venture capitalists, and government schemes.

4. Legal and Administrative Support: They help startups with company registration, licensing, tax filing, and compliance issues.

5. Networking Opportunities: Startups get a chance to interact with other entrepreneurs, industry experts, and mentors.

6. Skill Development and Training: Incubators organize workshops and seminars on topics like pitching, branding, business planning, etc.

7. Market Linkages: They help startups connect with customers, suppliers, and potential business partners.

Conclusion: Business incubators play a key role in developing innovation and entrepreneurship by giving startups the foundation and support they need in the early and risky stages of their journey.

(b) Highlight the reasons behind conflicts in family businesses. What strategies can be employed for conflict resolution in family businesses?
Answer: Family businesses are those where business ownership and management are in the hands of family members. While they offer trust and unity, they can also face conflicts due to overlapping personal and professional relationships.

Reasons for Conflicts in Family Businesses:

1. Lack of Clear Role Definition: Family members may not have clearly defined roles, leading to confusion and interference in each other’s work.

2. Leadership Disputes: Conflicts arise when there is disagreement about who should lead or take important decisions, especially between generations.

3. Unequal Participation and Compensation: Some members may feel they are working harder but not being rewarded equally.

4. Succession Issues: Disputes often occur over who will take over the business from the older generation.

5. Mixing of Personal and Business Issues: Personal emotions and relationships can affect business decisions.

6. Differences in Vision or Values: Young and old family members may have different business goals and working styles.

Conflict Resolution Strategies in Family Businesses:

1. Establishing a Family Constitution: A written document that defines roles, responsibilities, decision-making rules, and succession plans.

2. Professionalization of Management: Appointing qualified professionals and separating ownership from management to bring objectivity.

3. Open Communication: Encouraging regular meetings where all family members can express views and solve issues.

4. Clear Succession Planning: Deciding in advance who will take over leadership and how responsibilities will be passed.

5. Hiring External Advisors or Mediators: Neutral third-party advisors can help resolve disputes without emotional involvement.

6. Performance-Based Rewards: Pay and promotions should be based on performance, not family status.

Conclusion: Family business conflicts can harm both relationships and business success. Effective planning, communication, and professionalism are key to managing and resolving such conflicts.

(c) Explain any one theory of entrepreneurship. Discuss the role of entrepreneurship in economic development.
Answer: One Theory of Entrepreneurship: Schumpeter’s Innovation Theory

Joseph Schumpeter, a famous economist, proposed that entrepreneurs are innovators. According to his theory, entrepreneurship is the process of creative destruction, where new ideas replace old systems.

Key Points of Schumpeter’s Theory:

Entrepreneurs introduce new products, new methods of production, or new markets.
They bring innovation that leads to economic progress.
Entrepreneurs are not just risk-takers, but change-makers who break routines and make businesses more competitive.

Example: Invention of smartphones replaced landline phones. Entrepreneurs like Steve Jobs brought this innovation.

Role of Entrepreneurship in Economic Development:

1. Employment Generation: Entrepreneurs create new businesses, which provide jobs to many people and reduce unemployment.

2. Innovation and Technology Advancement: Entrepreneurs introduce new ideas, products, and technologies, which improve efficiency and quality.

3. Economic Growth: Entrepreneurship increases production, income, and investments, contributing to the GDP of a country.

4. Balanced Regional Development: Entrepreneurs often set up industries in rural and backward areas, helping in the development of those regions.

5. Improvement in Standard of Living: New products and services improve lifestyle and offer better choices to consumers.

6. Encouraging Foreign Investment: Startups and successful businesses attract international investors and increase global business relations.

7. Promotes Self-reliance: Entrepreneurship reduces dependency on jobs and encourages people to become self-employed.

Conclusion: Entrepreneurship is a powerful tool for economic development. It not only creates wealth and jobs but also brings innovation and progress to society. Theories like Schumpeter’s highlight how important entrepreneurs are in shaping the future of the economy.

(d) Discuss the private systems and public systems of support for entrepreneurship.
Answer: Entrepreneurs need various types of support to start, run, and grow their businesses. These supports come from both private systems (non-government) and public systems (government). They help in the form of finance, training, infrastructure, mentorship, and policy support.

1. Public Systems of Support for Entrepreneurship: These are government-run institutions and programs that aim to promote entrepreneurship across the country.

a) Government Ministries and Departments:

Ministry of Skill Development and Entrepreneurship (MSDE): Works to promote entrepreneurship and skill-building programs.
Ministry of MSME: Provides support to micro, small, and medium enterprises through schemes like PMEGP, MUDRA loans, etc.

b) Financial Institutions:

SIDBI (Small Industries Development Bank of India): Offers loans and funding to small businesses.
Nationalized Banks: Provide working capital, term loans, and overdrafts to entrepreneurs.

c) Development and Training Agencies:

DIC (District Industries Centres): Helps entrepreneurs with registration, licensing, and project reports.
EDII (Entrepreneurship Development Institute of India): Conducts training and workshops.
NSDC (National Skill Development Corporation): Offers skill-based training programs.

d) Startup Support Schemes:

Startup India: Offers tax benefits, funding, and single-window clearance for new businesses.
Stand-Up India: Supports SC/ST and women entrepreneurs.

2. Private Systems of Support for Entrepreneurship: These are non-governmental organizations, individuals, or institutions that help startups and entrepreneurs grow.

a) Business Incubators and Accelerators: Provide office space, mentorship, training, and funding to startups. Examples: T-Hub (Hyderabad), NSRCEL (IIM Bangalore), IIT Madras Incubation Cell.

b) Angel Investors and Venture Capitalists: Private investors who fund startups at early stages. Examples: Indian Angel Network, Sequoia Capital, Accel.

c) Private Banks and NBFCs: Offer loans, overdraft facilities, and credit lines to new businesses. Examples: HDFC Bank, ICICI Bank, Bajaj Finserv.

d) Industry Associations and Chambers: Offer networking, training, and market exposure. Examples: FICCI, CII, ASSOCHAM.

e) NGOs and CSR Initiatives: Many NGOs and private companies offer entrepreneurship training under CSR (Corporate Social Responsibility) programs.

Conclusion: Both public and private systems play an important role in promoting entrepreneurship by providing financial, technical, and managerial support. A combination of both is needed for a strong entrepreneurial ecosystem.

(e) What is project appraisal? Discuss project appraisal by financial institutions.
Answer: Definition of Project Appraisal: Project appraisal means the process of examining and evaluating a business project to find out whether it is technically feasible, financially viable, and economically worthwhile before investing in it.

It is an important step in decision-making, especially when a loan or investment is involved.

Importance of Project Appraisal:

To check the feasibility and profitability of the project
To ensure proper utilization of funds
To minimize the risk of failure
To help investors and banks make informed decisions

Project Appraisal by Financial Institutions: When entrepreneurs apply for loans or financial help, banks and financial institutions like SIDBI, IDBI, and commercial banks conduct a detailed appraisal of the project based on several aspects:

1. Technical Appraisal: Checks whether the technology used in the project is reliable and suitable. Examines availability of raw materials, power, skilled labour, location, and plant capacity. Ensures that the production process is efficient

2. Financial Appraisal: Evaluates total cost of the project, sources of funds, break-even point, and repayment capacity. Examines expected profits, cash flows, IRR (Internal Rate of Return), and ROI (Return on Investment). Determines whether the business can repay the loan

3. Economic and Market Appraisal: Analyzes market demand, competition, pricing, and customer base. Estimates whether the product or service will succeed in the market

4. Managerial Appraisal: Reviews the skills, experience, and background of the entrepreneur and management team Judges whether the promoters can successfully manage the business

5. Social and Environmental Appraisal: Examines whether the project creates jobs, benefits the local economy, and avoids environmental harm. Especially relevant for large or government-backed projects

Conclusion: Project appraisal is a critical tool for financial institutions to judge the strength of a business idea before funding it. It protects both the lender and the entrepreneur by ensuring that the project is realistic, profitable, and sustainable.

-0000-

Must Visit: GU FYUGP BCom 3rd Sem Main Page, Solved Papers, Notes

The Treasure Notes