NCERT Solutions selection of an enterprise class 12 notes pdf

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selection of an enterprise class 12 notes

Class12th 
Chapter Nameselection of an enterprise
Chapter number04
Book NCERT
SubjectEntrepreneurship
Medium English
Study MaterialsImportant questions answers
Download PDFentrepreneurship chapter 4 class 12 pdf

selection of an enterprise class 12 notes

Selecting an enterprise under entrepreneurship is a difficult problem. Therefore the entrepreneur or adventurer should be very careful while selecting a new venture. A courageous person should choose only that venture which is beneficial for the future. An adventurer must take care of the business environment while setting up any new business or industry. He establishes and runs that enterprise in which there is hope of getting more income.

An entrepreneur or adventurer keeps various things in mind when choosing a new venture. In this regard, project services, market, technical information, quantity of goods to be manufactured and location should be selected appropriately. By selecting a good project he becomes successful in his business work.

Selection of any project or enterprise involves collecting, analyzing the economic material related to the system and selecting a business opportunity and investing one’s capital in it. Observation is a good selection process. Through this, funds are invested in that enterprise which has the potential to make more profits. An entrepreneur gets information regarding business from various economic newspapers and journals. 

Similarly, a good project can be selected on the basis of economic information published from government departments. The adventurer analyzes various projects in detail and then 1 tries to run them smoothly. 

For a good project, various things have to be kept in mind, such as cost of the project, appropriate location of the enterprise, selection of technology, availability of raw material and cheap labour, good selection of plant and adoption of good marketing system. And so on .

NCERT Solutions selection of an enterprise class 12 notes pdf

To keep an adventurer in the category of a good adventurer, one should also choose a good idea carefully. One should consider choosing only that venture which can be profitable for the adventurer.

While choosing the product, the entrepreneur has to see that the product chosen can be sold in the market as soon as possible and a reasonable profit can be earned. To achieve success in business and industry, one should choose a good product. Only those items should be produced which are in high demand in the market.

The success of an industry or enterprise comes from a courageous person doing the right thing at the right time. The entrepreneur should be aware of the rules, regulations and government exemptions related to the industry. In order to start an industry, an entrepreneur has to make various arrangements, such as the industry should be selected properly. 

Besides, selection should also be made on the infrastructure of industries. Similarly, attention should also be paid to good machinery and raw materials. Marketing arrangements for the sale of produced goods should also be taken care of. An entrepreneur should effectively utilize the relevant business environment to achieve success in his industry or business. With good leadership, a courageous person becomes successful in his administrative work.


VERY SHORT ANSWER TYPE QUESTIONS


1. What do you understand by choice of an enterprise?

Ans. When an entrepreneur or adventurer has an idea to establish a new venture and selects the venture accordingly, it is called choosing a venture.

2. How many types of opportunities are there?

Ans. There are mainly three types of opportunities, which are as follows (i) Habit related opportunities (ii) Complementary opportunities (iii) Obstructive opportunities.

3. What is project selection?

Ans. When an entrepreneur or adventurer conceives of an idea of ​​setting up a venture. And in relation to this, if the project is adopted then it is called selection of the project.

4. What is observation?

Ans. Observation is a good selection policy or action under entrepreneurship. Business leaders capable of this keep looking for new opportunities that they consider worthy and profitable to invest capital in. Sometimes observers present something new either from an existing project or by starting a new project. Good enterprise can be established through observation.

5. Write the factors to be considered while selecting a project. 

Ans. The main points which an entrepreneur keeps in mind while selecting a project are as follows – (i) Considering the cost of the project (ii) Selecting a suitable place for setting up the enterprise (iii) Modern technology for the enterprise. Deciding how to use technology. (iv) Selecting good raw material for production work (v) Arranging cheap labor (vi) Establishing good plant (vii) Implementing proper marketing system etc.

6. What do you understand by choice of idea?

Ans. When an adventurer or entrepreneur brings to mind the idea of ​​setting up a new venture and adopts the process of selection regarding it, it is called selection of idea. By choosing the right idea, an adventurer can establish a good new venture and earn maximum profits in it.

7. What does no opposition mean?

Ans. When an adventurer or entrepreneur creates a project to establish a new venture and selects all the necessary things and there is no obstruction of any kind in this regard, then it is called no opposition.


SHORT ANSWER TYPE QUESTIONS


1. Describe the idea of ​​choice.

Ans. To keep oneself in the category of good adventurers, an adventurer should also think carefully about good thoughts. Even if the idea is not good for the market the project is good for you. This means the project is right for you and the society. This should be managed on your own and you should not take help from others.

Whenever you start looking for an opportunity, you should never keep just one idea (industry) in mind, rather 5-10 should be kept in mind. There are several disadvantages of working on a single idea:

(i) A person receives information about only one industry and his sources are newspapers, magazines and human experiences.

(ii) Choosing an idea is quite difficult, one has to keep in mind one’s ability and resources.

(iii) Various suggestions: Regarding new product, various suggestions, customers, competitors, distributors and company employees.

(iv) Market consideration: Where to sell the product is also a difficult problem, it is necessary to consider it.

2. Describe the importance of project identification.

Ans. Identification of a project is important for the following reasons:

(i) Product identity is an agent that changes economic conditions.

(ii) Stages of product identity development such as manufacturing goods, providing employment, increasing income.

(iii) The goals/objectives of product identification are long term in nature.

(iv) Projects outline the future work of an organization. 

(v) Product identity is the outline of future services.

(vi) Projects involve a lot of money.

(vii) Attention should be paid to the supporting materials and environment of the projects.

(viii) Projects cannot be changed easily.

(ix) Project identification of changes necessary for the society that may have to be made in the long term. 

3. Describe the stages of setting up a venture.

Or, describe courageous ideas and act on them. Or, describe the stages of setting up an industry.

Ans. The success of an industry depends on a person doing the right work at the right time. The entrepreneur should be aware of the rules, regulations, and government exemptions related to the industry. The general approach is as follows-

Right work, right time, industry selection, investment of money, earning profit and re-appropriation of profits which will lead to expansion and growth.

Process of Setting up of an Industry: The steps of setting up an industry are as follows-

(i) Selection of industry and study of facilities.

(ii) Management of resources, raw material, labor and power etc.

(iii) To manage the machine – local or imported.

(iv) Raw material from local and outside.

(v) Finance system.

(vi) Marketing of finished goods.

(vii) Various exemptions given by the government to industries should be studied thoroughly.


long answer questions


1. Describe the concept of project selection.

Ans. Choosing a business or project is a difficult task for an adventurer. An entrepreneur has many choices such as: project, services, market, technology plant, quantity of goods to be produced, and the place where all these activities are carried out. Choosing a strong or good project is difficult. In the selection of projects, government policies, supporting elements of the enterprise and availability of qualified employees are important.

Selection Project- In selection, collecting and analyzing economic material related to business and finding strong opportunities and investing money in them. Opportunities may be of the following types:

(i) Addiction – This category includes those opportunities in which the present has to be continued without making any new changes.

(ii) Complement Opportunities – In this, the existing enterprise is redesigned by making some changes.

(iii) Break through opportunities – These types of opportunities involve fundamental changes. In this, changes are made in the structure and nature of business.

Observation is a good selection policy. Smart business leaders are always on the lookout for new opportunities that they deem worthy of investment. Sometimes the observer takes some action from the existing project or by starting a new project.

Presenting new. Magazines related to business and professions in our country and in other countries give information about such projects. It is also very important for every entrepreneur who keeps looking for new opportunities from time to time, especially in those projects in which he gets specialization. 

It is also necessary for him to keep looking for opportunities for development in other areas. By reading technical magazines, the adventurer’s current knowledge remains complete.

Newsletters of various industrial units also give detailed information about new projects. These magazines also provide information about many units. Information about many projects related to poverty alleviation in many countries of the world is known through magazines. 

Through planned economy, those areas are identified where there are opportunities for investment. Published documents of government departments provide ample information about new projects. These magazines are published after the period or on special occasions.

How to achieve the main daily objectives etc. is demonstrated well.

2. Describe the guidelines for selecting a project.

Ans. The adventurer analyzes various projects in detail and then tries to run them smoothly.

(i) Project Cost – Professional managers of big companies who have experience of working in multinational corporations, start projects worth Rs 3 to 5 crores. It should also be kept in mind here that if the size of the project is less than Rs 2 crore then it may have to face a lot of financial crisis. At present the Government of India is giving a lot of encouragement to new projects.

(ii) Location / Site – The entrepreneur should set up his enterprise near the main office of the government. There are many backward places around this center which have opportunities for development. The location of the business should be such that good managers can be easily obtained. Due to this, electricity, finance and other services are available due to their proximity to the main office.

(iii) Technology – While choosing the project, it should be kept in mind that the first project should be such that it requires less technical knowledge. Only enterprises with prevalent technology in the country should be selected. 

(iv) Raw materials – Any project for which raw materials have to be imported from abroad should not be selected. Industries with local raw materials should be selected.

(F) Cheap labor supply – There is no doubt that in the present industries all the work is done by automatic machines, yet labor is still required. The inexpensive labor component must be taken into account.

(vi) Equipment – ​​The adventurer should take it only from the best technical experts. The quality of plants should never be compromised. Industry is a goose that lays golden eggs. The owner of any industry should not be narrow minded and should never buy inferior quality plants.

(vii) Marketing – One should never choose the first industry in which one has to face cut-throat competition nor such an industry whose product has to be sold directly to the consumer. The product should be such that it is limited to 10-20 industrial customers.

3. What do you understand by product selection? What things are kept in mind regarding this? (What do you mean by selection of a product? What considera- tion for selection of a product?) 

Ans. While selecting the product, the entrepreneur has to see that the product selected can be sold quickly in the market and a reasonable profit can be earned. 

To be successful in business, one should choose a good product. Appropriate product means that the products are sold quickly at a reasonable price and this gives inspiration to run the business. An adventurer should take into account several factors when choosing a product. which is like this-

(i) Import Restrictions – If there is a restriction on import of any product then it must be selected.

(ii) Past Experience – When the entrepreneur himself or his partner has experience in making or selling that product in the past, then it is necessary to choose such a product. Those who do not have experience in the field should not be selected.

(iii) Degree of Profitability – Product choice is also influenced by the degree of profitability. Information about such products can also be obtained from banks, financial institutions and market sources.

(iv) Facility of Concession – The government also sometimes provides the facility of special concessions to some products, especially those products which the government has to import. If some products have special discounts, tax exemption etc. there are benefits of choosing such products. 

(v) Class of Product – Some products are in the form of priority industries, like some products should be purchased only from small-scale sectors as per government order. In such a situation, choosing such a product would be best.

(vi) Market for the Product – The importance of the product in the market also plays a very important role in the selection. The product which is possible to export will be the best choice and will have great importance in the success of the business. 

(vii) Product License – A product for which a license has to be obtained from the government faces great difficulties. Therefore, while choosing a product, it must be decided whether a license to manufacture the product will be required or not. 

(viii) Facility of Ancillary and Service Units – Where the services of Ancillary and Service Units provide convenience to big industries, then such products should be selected.

Conclusion: The main objective of doing this is to identify the main features of the project, the idea of ​​a project is associated with many problems, how will all of them be solved? This issue should be thought about seriously. The given picture will be very helpful in understanding this.

4. Examine the criteria for finding new product opportunities.

Ans. Given below are some criteria whose answers will automatically make product selection easier:

(A) Does the product meet your skills and experience? 

(i) (Does Product fit with your skill and experience ?) Do you have confidence in the product and service? 

(ii) What need arises that you would like to meet personally? 

(iii) Are you interested in prospective customers? 

(iv) Do you have experience in this type of business?

(V) Do the success factors of this business match your skills?

(vi) Do you enjoy working with other employees?

(vii) Are there occasions when you use your imagination in your free time?

(viii) Do you think of getting good respect/respect?

(ix) Will the new idea bring any benefit to the society?

(B) Fit with the market

(i) What is the actual customer need? 

(ii) Are you getting a price that gives you a fair profit? 

(ii) Do customers trust the product that is coming from your company?

(iv) Will the product or service benefit the customer?

(v) Does the product convey the message to customers based on cost?

(C) Does mail increase with enterprise? (Does it fit with the enterprise?)

(i) Is there any reason to believe that your enterprise is a very good business?

(ii) Does it match the culture of the enterprise?

(iii) Can you imagine who will bear its expenses? What is the profit potential (high income-low investment). Is there potential for larger markets and growth?

(D) What will you do when your idea is rejected? (What to do when your idea is Rejected?)

(i) Leave the old idea and start a new idea.

(ii) Listen carefully, try to understand what is wrong? Refine your ideas and improve your presentation, then try again.

(iii) Discuss with someone else and have the following viewpoint:

(iv) Who will benefit most? And who will bear the expenses? 

(v) Who will be the future customers? Will they demand the product?

(vi) How can you take cooperation of humans? Who focus on courageous ideas?

5. Discuss the stages of setting up an industry. (Discuss the steps for establishing up Industry.) 

Ans. Some steps regarding starting industries are as follows-

(1) Selection of Industry – In order to set up an industry, selection should be made on the basis of past experience. In small industries, the chief executive, surveyor, accounting clerk, order manager, salesman and financial advisor are all the same person/or people from the same family. 

Every day, advertisements of government small scale industrial corporations keep appearing in the newspapers. They are providing power, water, roads or transport, electricity, raw material facilities, machines and many other common facilities by creating a complete industrial colony. Provide training facilities and marketing facilities for the product. 

Loan is also given on easy terms and working capital is also arranged. Many types of relaxations are also given in backward areas.

(2) Infrastructure of industries – Industrial areas have been created at every district level which are created by industrial operators by creating industrial units. In which electricity, water, power, and other types of forms are given. The method to get these facilities is as follows-

(i) Obtain “No objection certificate” by submitting an application to the Industrial Commissioner and informing the Labor Department and the Provincial Government.

(ii) To send Form A, along with a copy of the NOC, to the Provincial Government.

(iii) To fill various information in Form A properly and also to give detailed description. 

(iv) To the Assistant Engineer. after filling

(v) After careful study, the Assistant Engineer submits his report in Form No. 3, if there is any exception then form no. Will fill 4.

(vi) Form No. After meeting 3, Form B is obtained, which is filled and given to the District Industries Officer.

(vi) 21 days after submission of Forms A and B, three copies of the factory plan shall be sent to the Assistant Engineer in Form No. Will issue 5 and 6 in which the power has been approved. 

Availability of water in appropriate quantity, various formalities related to the factory which the Chief Industries Engineer may deem appropriate. Form (c) is issued with all these provinces and then permission to start production is given.

(3) Machinery – Necessary machines are required for small scale production. Machines can also be purchased from national small corporations. In 1956, this corporation started providing machines on loan basis. When a machine is purchased on credit, details of organizational information have to be given such as where the organization is located, production schedule, marketing and profitability of the enterprise etc. / Apart from this, other additional information is also given such as production cost, production facilities and Technical abilities of the adventurer.

(4) Raw Materials-The following types of raw materials are made available to small industries-

(a) Raw materials and spare parts, indigenous or foreign,

(b) Raw materials without metal, domestic and foreign,

(c) Iron and steel, domestic and foreign,

(d) Chemicals – domestic and foreign.

‘According to the policy of liberalization, foreign exchange facilities are provided to genuine consumers so that they can purchase foreign raw materials if they require them. Cast Iron – Provided by MMTC.

(5) Finance-There is no difference in the finance system of small and big industries.

Finance is required for purchase of fixed assets – land, building, machines, furniture etc. Working capital for raw materials, spare parts, payment of salaries and wages etc.

The State Director of Industries also provides finance for fixed assets. Finance corporations also give long term loans but to do so on form

The following information has to be given.

(1) Project report (2) Copy of registration (3) Fund flow statement (4) Stock statement.

In some states, loans up to Rs 2 lakh can also be given (State Finance Corporation). These corporations also provide working capital.

To take a loan from a commercial bank, an entrepreneur has to fill the following forms and submit them to the banks.

(i) Concern of profit and loss and scholarship (ii) Details of assets and liabilities Copy of necessary documents (assets) (iii) (iv) Copy of affidavits – (as to size of unit) (v) Technical facility Report which has been taken from the Director of Industries.

(6) Marketing – The Government of India has made its own arrangements for purchasing the goods of small industries. The purchasing process of this corporation is as follows-

(i) Such industries will have to be related to NSIC.

(ii) DGS&D forms should also be taken from NSIC. 

(iii) Goods of big industries should be given to the purchasing organization at a price 15% higher. 

(iv) When an NSIC becomes aware that small scale industries are in distress. NSIC itself deals with government departments like Railways and Postal Department, if goods are not purchased from them, then efforts are made to rectify them.

(v) Initially only 16 items were included in government procurement whereas at present there are 379 items.

(7) Various Incentives – For many facilities, help of Director of Industries or SISI should be taken.

For this work SIDO – (Small Industries Development Organization) Ministry of Industry has established 16 Small Industries Service Institutes, 19 branches. NSIC (National Small Industries Corporation Okhla New Delhi) Machine,

The plant is provided on purchase basis and it also provides training and development facilities.

6. Describe the various elements of success of an adventurer. (Discuss the various elements of the success of entrepreneur.) 

Ans. Indian entrepreneurs will have to face difficulties in the global market to work successfully and meet new challenges. The following points differentiate a successful and unsuccessful businessman-

(i) Leadership – Leadership is a major aspect for success in any business, for which it is necessary to have a clean image, objectives, well-influenced intentions, fast pace and good image of the employees. 

(ii) Control – Adequate and well-planned control is essential for business success. Constant monitoring of results, following good ideals, planning and analysis of foresight are essential for success.

(iii) Employees – It is necessary for any successful businessman that he should be capable enough to get fully active cooperation of his employees and emphasis should be given on the communication of the organization and training of the employees.

(iv) Nearness to Market – For the success of a good organization, the market should be close to that organization. By improving the product and production process through systematic market research and providing the goods to the consumers at their full value, the market share increases.

(v) Sticking to the Last – The next important characteristic of a successful business organization is zero basing or sticking to the last, knowing what the business is telling and quickly reorganizing when Have walked on an unwanted path.

(vi) Innovation – Innovation is an essential feature for the success of a business because competitors can be defeated by new changes. Some businessmen only pretend to make cosmetic changes and innovations. They invite thoughts and soon forget them. Even if accepted, proper information about that opportunity should also be given to the employees. Successful business organizations create a climate/environment through which new

Coming up with ideas becomes the job of the employees. Something that helps in creating new ideas and also considering what contribution it makes to other companies.

Therefore, on the basis of the above discussion, it can be said that when an adventurer or entrepreneur runs his business or industry keeping these elements in mind, he becomes successful in it.


NCERT Solutions for Class 12 Commerce Stream


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