M.Com. DEGREE EXAMINATION, APRIL 2016.
First Semester
ENTREPRENEURSHIP DEVELOPMENT
(CBCS 2012 onwards)
Time 3 Hours Maximum 75 Marks
Part A 3 15)
Answer all questions.
1. Distinguish between entrepreneur and businessman.
2. Who are Copreneurs?
3. Mention three objectives of SIPCOT.
4. What useful purpose does Differential Rate of Interest
scheme serve?
5. Distinguish between business idea and business
opportunity.
Part B 10 50)
Answer all questions, choosing either or
6. Explain the different types of entrepreneurs.
Or
Discuss the qualities of a successful entrepreneurs.
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7. What are the measures taken by the Government of
India to promote women entrepreneurship in India?
Or
Explain the different phases of entrepreneurial
development programme.
8. What is DIC? Explain its functions and comment on
its effectiveness.
Or
Discuss the role and functions of National Institute
for Entrepreneurship and Small Business
Development(NIESBUD).
9. Explain the details of loan scheme for
entrepreneurship under TABCEDCO.
Or
Explain the salient features of the revised TREAD
scheme for empowerment of women.
10. Discuss any three methods of generating business
propositions from market sources.
Or
How Porter's five forces model would assist in
analyzing the competition and devising strategies to
overcome the same while formulating
entrepreneurial ventures.
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Part C 10 10)
(Compulsory)
11. Read the following case and answer the questions.
M/s Johnson Metal Inc.
Mr. Johnson owns a small manufacturing plant that
makes hinges and small hardware used on kitchen
cabinets. When he began three years ago, Johnson took a
five-year, Rs. 6 Lakhs loan from a commercial bank,
using his private home as collateral. During the first two
years, Johnson was barely able to keep afloat. After
meeting his bank obligations, he was able to take a small
salary for himself. In the third year, he decided to make
several changes to boost sales and 'profits.
Johnson began to quote lower prices than he had before,
in the hope that higher volume would lead to more
profits. His reduced prices did improve volume, but this
higher volume brought increased overtime as his
employees worked to fill orders. When he realized how
costly overtime had become, he decided to hire extra
employees instead. This decision created crowded
conditions that led to enormous inefficiency. Because of
the crowded conditions, he could only purchase the
materials that he needed and could not take advantage of
quantity discounts from suppliers.
In addition, the larger volume of business meant accounts
receivable and higher cash needs so, although he was
needed to oversee production, he spent more and more of
his time on the telephone trying to get customers to pay
more quickly. When the February installment of his loan
came due, Johnson found that he was unable to meet it.
He could not even pay his own salary. He asked the bank
for more money, but he was told that he had exhausted
his credit. The bank agreed to let him postpone several
payments until his cash flow improved. When he looked
at his books at year's end, Johnson found that he had
earned even less than the year before. He had little
recourse but to ask his family to help him keep the
business afloat.
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Questions:
How did Johnson's managerial decisions affect the
success of his business?
How important was 'the people factor' in Johnson's
business?
What specific money factors influenced the changes
in his business?
How would you have tried to make this business
more profitable?