Arrange the following process of setting up of a business chronologically.
A. Assessment of feasibility of idea and preparing plan
B. Scanning the environment for opportunities
C. Resource mobilization
D. Appraisal by funding agencies
E. Development of product/service idea
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → B, E, A, D, C
B. Scanning the environment for opportunities — This is the first step. The entrepreneur first scans the environment to spot general business opportunities.
E. Development of product/service idea — Next, the entrepreneur zeroes in on a specific product or service idea from the general opportunities found.
A. Assessment of feasibility of idea and preparing plan — The idea is checked for feasibility, and the findings are compiled in a business plan.
D. Appraisal by funding agencies — The business plan is appraised by the funding institution.
C. Resource mobilization — Only after the appraisal does the institution sanction the loan, so the funds and other resources are mobilised last.
Note: This question is from the chapter Entrepreneurship Development, which is not in the current NCERT book (2026-27). The chapter is in the pre-rationalised NCERT, from which the extract below is taken. NCERT (Pre-rationalised Edition): “Clearly the chosen product offering must be feasible from the diverse perspectives. You must compile these findings in the form of a business plan that would have to be submitted to the funding authorities, in the Indian context, the State Finance Corporation of your area. …” “The business plan may be appraised by the funding institution, and upon satisfying itself about the desirability of assisting your project and upon the furnishing of some margin money it may sanction the loan”
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