MS-93 Solved Assignment

Old Samples – Ignou MS-93 Solved Assignment

Q. How can Entrepreneurial Competencies and Skills be developed through suitable training interaction? Explain.

Answer. The term "ENTREPRENEURIAL COMPETENCIES" refers to the key characteristics that should be possessed by successful entrepreneurs in order…..

the next step is to find out where one stands with respect to a given competency. In other words, does one possess a given competence and if so how frequently one exhibit the same in one's day-to-day…….

One's desire to acquire new behaviour, internalise and practice the same would be strong only when one understands the benefit of operating as per the newly acquired behaviour versus usual/old behavioural pattern. Hence, having understood a competence……

Q. Explain the common errors committed in the formation of a Business Plan.

Answer. Following are some common errors committed in the formation of a business plan:

….is inconsistent with industry norms and overly aggressive can quickly have your plan shelved. It is far better too error on the conservative side here and work with your accountant on attractive and realistic numbers……
Once this subterfuge is uncovered and it is obvious to everyone that you haven't been completely forth-right, the natural question in the mind of the investor is "what else haven't you told me." When you've lost this element of trust, you've lost the opportunity…….
This sometimes becomes the sole and overriding concern. He may thus choose a location which from the standpoint of market-proximity, raw material 'availability, manpower position and operating cost-structure, is eminently suitable. Then, there are instances of an entrepreneur choosing a location merely because it is his hometown or he owns ancestral land-though it is not an appropriate location……

Q. “The cash flow statement provides a way of relating an entrepreneur’s earning efforts with their effect on the cash balances”. Discuss this statement with reference to control of Cash Flow statement.

Answer. Complementing the balance sheet and income statement, the cash flow statement (CFS), a mandatory part of a company's financial reports, records the amounts of cash and cash equivalents entering and leaving a company. The CFS allows investors to understand how a company's operations are running, where its money is coming from, and how it is…..
. Many a profitable business on paper has ended up in bankruptcy because the amount of cash coming in doesn't compare with the amount of cash going out. Firms that don't exercise good cash management may not be able to make the investments needed to compete, or they may have to pay more to borrow money to function…….
on the basis of what you actually experience, annually, work out your current ratio to find out if you have liquidity in excess of your needs or vice versa. Acid test ratio is a ratio of cash plus receivable to current liabilities……

Q. What are the advantages of company form of organization as compared to Proprietorship/ One Person Company and Partnership form of organization? Discuss

Answer. Corporations enjoy many advantages over partnerships and sole proprietorships….
Owners of partnerships and sole proprietorships, on the other hand, are held responsible for all company debts and legal responsibilities, and are subject to losing personal assets if the company goes bankrupt or is caught up in costly legal situations…..
However, loopholes exist to ease the burden of paying taxes as a corporation and as individual shareholders. A corporation is not required to pay tax on earnings paid as compensation to employees or shareholders, and it can deduct the payments as a business expense……
Instead, each of its assets, licenses and permits must be individually transferred. Plus, new bank accounts and tax identification numbers are required.

Q. What do you understand by family business? Explain the characteristics of family business and discuss the issues and problems of family business.

Answer. A family-owned business may be defined as any business in which two or more family members are involved and the majority of ownership or control lies within a family. Family-owned businesses may be the oldest form of business organization….
. Family businesses may include numerous combinations of family members in various business roles, including husbands and wives, parents and children, extended families, and multiple generations playing the roles of stockholders, board members, working partners, advisors, and employees. Conflicts often arise due to the overlap of these roles…..
Family businesses often face pressure to hire relatives or close friends who may lack the talent or skill to make a useful contribution to the business. Once hired, such people can be difficult to fire, even if they cost the company money or reduce the motivation of other employees by exhibiting a poor attitude……
The business leaders should take steps to gradually remove these relatives from the daily operations of the firm, including encouraging them to become involved in outside activities, arranging for them to sell some of their stock or convert it to preferred shares, or possibly restructuring the company to dilute their influence….
This approach should discourage employees from jockeying for position or playing politics. The business leader may also find it useful to have regular meetings with family members, and to put all business agreements and policy guidelines in writing…..