NCERT Solutions for Class 12 Entrepreneurship Enterprise Growth Strategies
NCERT Solutions for Class 12 Entrepreneurship Enterprise Growth Strategies
NCERT Solutions for Class 12 Entrepreneurship Enterprise Growth Strategies is designed and prepared by the best teachers across India. All the important topics are covered in the exercises and each answer comes with a detailed explanation to help students understand concepts better. These NCERT solutions play a crucial role in your preparation for all exams conducted by the CBSE, including the JEE.
NCERT TEXTBOOK QUESTIONS SOLVED
1. What are the two ways in which an organisation can expand?Ans. Internal Expansion and External Expansion are the two ways in which an organisation can expand.
2. Who is a franchisor?Ans. The owner or person offering the franchise is known as the franchisor.
3. Who is a franchisee?Ans. The franchisee is the person who purchases the franchise and is given the opportunity to enter a new business with a better chance to success than if he or she were to start a new business from nothing.
4. What is franchising?Ans. Franchising is an arrangement through which the manufacturer or sole distributor of a trademarked product or service gives exclusive rights of local distribution to independent retailers in return for royalties and conformance to standardized operating procedures.
5. Which is the most popular form of franchising?Ans. Business format franchise opportunity is the most popular form of franchising.
6. What is acquisition?Ans. Acquisition or take over is enveloping in itself a range of acquisition transactions by a firm.
Ans. Small enterprises are more vulnerable than large ones to small changes in environment, change in taste and preference of consumers, taxation policies, other government policies, cost of raw materials, etc.
8. What is called the stage of consolidation for an enterprise?Ans. Stage of consolidation for an enterprise is the stage, which is normally 3 to 5 years after the take-off stage. During this stage the turnover of the enterprise is maintained.
9. Why is it necessary for an enterprise to have a plan for growth?Ans. It is necessary for an enterprise to have a plan for growth as without growth the enterprise will be removed from the market and will become extinct.
10. What constitutes direct competition?Ans. Direct competition is found where many Each producer wants to capture maximum consumers using various techniques like persuasive advertising, schemes etc. each firm wants to enjoy competitive edge over its competitors.
11. How an internal expansion may be financed?Ans. Internal expansion may be financed by the issue of more share capital, generating funds from old profits or by issuing long¬term securities.
12. What is required by an entrepreneur to ensure the continued efficiency and profitable functioning and growth of enterprise?Ans. To ensure the continued efficiency and profitable functioning and growth of enterprise, extra managerial ability is required.
13. What are the two main forms of external expansion?Ans. The two main forms of external expansion are: Franchising and Mergers and Acquisitions.
14. 'It is the process of entrepreneurship which involves the translation of a useful idea into an application which has commercial value.’ Identify the process.[CBSE Delhi 2015]Ans. Innovation.
15. Define merger.Ans. A merger is a combination of two companies to form a new company.