Assertion Reason Questions for CBSE Class 11 Entrepreneurship Chapter 6 Business Finance and Arithmetic
Here we are providing assertion reason questions for cbse class 11 entrepreneurship. All chapters are covered.
Business Finance and Arithmetic Assertion Reason Question
In the following questions a statement of assertion followed by a statement of reason is given. Choose the correct answer out of the following choices.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Q1. Assertion (A): The closing balance of an income statement becomes the opening balance in the upcoming accounting period in an income statement.
Reason (R): Opening balance is the amount of money a business starts with.
Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Explanation:
The closing balance of an income statement becomes the opening balance in the upcoming accounting period in an income statement. This balance is carried forward to the new financial year accounts and then becomes the opening balance – the first entry in the new accounting period.
Q2. Assertion (A): The unit price or unit area value for a high-storeyed apartment in Mumbai is ` 45,000 per square feet.
Reason (R): Unit of cost for real estate / apartment is in Square Feet.
Ans. (c) Assertion (A) is true but Reason (R) is false.
Explanation:
Unit cost is determined by adding fixed costs and variable costs (which are direct labour costs and direct material costs lumped together), and then dividing the total by the number of units produced. Accordingly, (R) refers to Unit of sale for real estate which is in square feet.
Chapter List
- Entrepreneurship : Concept and Functions
- An Entrepreneur
- Entrepreneurial Journey
- Entrepreneurship as Innovation and Problem Solving
- Understanding the Market
- Business Finance and Arithmetic
- Resource Mobilisation
Entrepreneurship CBSE Class 11
The syllabus is divided into seven units: (i) Entrepreneurship: Concept and Functions (ii) An Entrepreneur (iii) Entrepreneurial Journey (iv) Entrepreneurship as Innovation and Problem Solving (v) Understanding the Market (vi) Business Finance and Arithmetic (vii) Resource Mobilization.
Unit 1: Entrepreneurship: Concept and Functions
Competencies: Vision, Decision making, Logical, Critical and Analytical Thinking, Managing Skills
- Entrepreneurship – Concept, Functions and Need
- Why Entrepreneurship for You
- Myths about Entrepreneurship
- Advantage and Limitations of Entrepreneurship
- Process of Entrepreneurship
- Entrepreneurship – The Indian Scenario
Unit 2: An Entrepreneur
Competencies: Need Achievement, Motivation, Ethics, opportunity seeking, Passion, Independence
- Why be an Entrepreneur
- Types of Entrepreneurs
- Competencies and Characteristics
- Entrepreneurial Values, Attitudes and Motivation
- Intrapreneur: Meaning and Importance
Unit 3: Entrepreneurship Journey
Competencies: Scanning the environment; Information seeking; creativity; Innovativeness; divergent thinking; Perseverance
- Generation of Ideas
- Feasibility Study and opportunity assessment
- Business Plan: meaning, purpose and elements
- Execution of Business Plan
Unit 4: Entrepreneurship as Innovation and Problem Solving
Competencies: Risk taking; Determination; Initiative; problem solving ability; Adaptability to changing technologies
- Entrepreneurs as problem solvers
- Innovations and Entrepreneurial Ventures – Global and Indian
- Role of Technology – E-commerce and Social Media
- Social Entrepreneurship – Concept
Unit 5: Understanding the Market
Competencies: Task oriented, Opportunity seeking, resourcefulness, organizational skills, Analytical and logical reasoning
- Market: Concept, Types
- Micro and Macro Market Environment
- Market Research – Concept, Importance and Process
- Marketing Mix
Unit 6: Business Finance and Arithmetic
Competencies: Arithmetic skills, critical analysis, decision making, self-confidence, problem solving
- Unit of Sale, Unit Price and Unit Cost – for single product or service
- Types of Costs – Start up, Variable and Fixed
- Break Even Analysis – for single product or service
Unit 7: Resource Mobilization
Competencies: Resourcefulness; Collaboration; Managing Risk; Organizational Skills; Informed Decision Making
- Types of Resources – Physical, Human, Financial and Intangible.
- Selection and utilization of human resources and professionals like Accountants, Lawyers, Auditors, Board Members, etc.