List of top Entrepreneurship Questions on Business Finance asked in CBSE CLASS XII

‘An affluent individual who provides capital for a business start-up and early stage companies having a high-risk, high-return matrix usually in exchange for convertible debt or ownership equity.’
(i) Identify the source to raise finance available to an entrepreneur discussed in the above lines.
(ii) State any four features of the source of raising finance discussed in (i) above.

‘It is an equity-based investment in a growth-oriented small to medium business to enable the investor to accomplish objectives in return for minority shareholding in the business.’ This investment has to be carefully evaluated and analysed by an entrepreneur to find out the stage at which he/she requires this investment to assist in.
(i) Identify the type of capital discussed in the above lines.
(ii) Explain the three stages included in ‘Early Stage Financing’ if the capital identified in (i) above is required at this stage.

Given below is the ‘Cash Conversion Cycle’.

(i) Identify the type of business to which the above cash conversion cycle belongs.
(ii) Draw a ‘Cash Conversion Cycle’ for another type of business other than that identified in (i) above.

Which of the following methods of floatation of new issues is used by the company when the company directly sells its securities to a limited number of sophisticated investors and at times does not want to disclose information to the open market?

Which of the following is not a current liability?

‘Return on Investment’ is a critical profitability ratio. It is calculated as follows:
\[ \text{Return on Investment (ROI)} = \frac{\text{Net Profit}}{____________} \times 100 \]

In this method of pricing, goods are sold at higher prices so that fewer sales are needed to break even. It also helps the company in recovering the research and development costs which are associated with the development of a new product. This method of pricing is: