CUET-UG SERIES
Entrepreneurship

Reading Comprehension

3 previous year questions.

Volume: 3 Ques
Yield: Medium

High-Yield Trend

3
2023

Chapter Questions
3 MCQs

01
PYQ 2023
easy
entrepreneurship ID: cuet-ug-
Vanaja and vasula are twin sisters who hail from the state of Kerala. They observed that children from her village were suffering from deformities due to prolonged use of pesticide contaminated river water and endosulphine spayed fruits and vegetables. Taking this into cognizance they both plan to start a firm which would promote organic farming in their village. In the beginning, the firm would be an association of two persons who would carry on the business as co-owners, would share profits and losses and would have unlimited liability. In order to avoid conflicts in future they would have a written agreement which will include all the classes relating to authority and responsibility of members, voting rights and roles and payment of members. The sisters will act as principal and agent for each other and for the firm. They discussed this proposal with the Block Development Officer (BDO). He was very appreciative of their efforts and suggested them to use a catchy slogan which would act as a powerful message to communicate to their cause. Taking clue from the suggestions made by the BDO, the sisters prepared a document which encompassed the relevant external and internal elements involved in starting a new venture. They approached BHIMA capitals Ltd with their proposal and presented a three-minute executive summary to awaken interest of potential funders. Quite impressed with the idea, the professional investors agreed to provide Private equity seed capital in return for minority shareholding.
Read the case study and answer the following questions.
02
PYQ 2023
easy
entrepreneurship ID: cuet-ug-
Vanaja and vasula are twin sisters who hail from the state of Kerala. They observed that children from her village were suffering from deformities due to prolonged use of pesticide contaminated river water and endosulphine spayed fruits and vegetables. Taking this into cognizance they both plan to start a firm which would promote organic farming in their village. In the beginning, the firm would be an association of two persons who would carry on the business as co-owners, would share profits and losses and would have unlimited liability. In order to avoid conflicts in future they would have a written agreement which will include all the classes relating to authority and responsibility of members, voting rights and roles and payment of members. The sisters will act as principal and agent for each other and for the firm. They discussed this proposal with the Block Development Officer (BDO). He was very appreciative of their efforts and suggested them to use a catchy slogan which would act as a powerful message to communicate to their cause. Taking clue from the suggestions made by the BDO, the sisters prepared a document which encompassed the relevant external and internal elements involved in starting a new venture. They approached BHIMA capitals Ltd with their proposal and presented a three-minute executive summary to awaken interest of potential funders. Quite impressed with the idea, the professional investors agreed to provide Private equity seed capital in return for minority shareholding.
Read the case study and answer the following questions.
03
PYQ 2023
easy
entrepreneurship ID: cuet-ug-
Read the following passage and answer the question.
Rajesh, Sudhir and Ananya are friends. They all belong to wealthy families. One day they decided to create an organisation to provide equity capital to entrepreneurs as seed capital or for growth. They decide to share the profits equally.
One day Rahul came to their office with a PPT and presented a oral narrative of his idea. The three friends were very happy and decided to provide him for 15% share of his company.
Rahul set up his organization by the name of 'Organico Ltd.' Rahul was selling ceramic cups and plates. Since the competition in the market was high, Rahul decided to set a price lower than the market price to attract new customers. He selected a long distribution channel as his product was durable. Fixed wests for the organisation is ₹12,90,000 per year. He sold 60,000 cups @ ₹20 per unit and 1,40,000 plates @ ₹25 per unit. The variable cost on cups was ₹8 per unit and ₹10 for plates.