Business Studies Assignment
1. commerce removes hindrance of place by means of ....................
Answer: Transportation
2. ............. is the reward for taking risk.
Answer: Profit
3. The liability of members in a Joint Hindu Family Business is ...............
Answer: Limited
4. Find the odd one out
Answer: Indian Railway
5. Commerce = Trade + .......
Answer: Aids To Trade
6. A Public Sector undertakings formed by passing an act in Parliament. Identify it.
Answer: Statutory Corporations
7. State any 4 characteristics of business.
Answer:
Characteristics of business
- Business is an economic activity.
- Regularity in dealing in goods and service
- Profit Motive
- Element of Risk
8. List out any 4 contents of partnership deed
- Name and Address of the firm.
- Nature of business
- Capital contributed by each partner.
- Dispute resolution method.
- Profit and loss sharing ratio.
- Name of the partners.
9. Explain any two benefits of Joint Venture.
Answer:
a) Increased Resources and capacity. Pooling of financial and human resources.
b) Access to new markets - Especially beneficial for foreign companies entering into Indian markets.
c) Access to technology - Saves time and money boosts efficiency.
10. State any two role of profit in business.
Answer:
- Profit is a source of income.
- Profit is essential for growth and expansion.
- Profit is the index of business performance.
- Profit is the reward for risk taking.
11. What are global enterprises?
Answer:
Global Enterprises are huge industrial organisation which extent their operations in several countries. They are characterized by huge size, large number of products, advanced technology, marketing strategies.
12. Write any 6 difference business, profession, employment.
Answer:
13. Describe any three limitations of departmental undertakings.
Answer:
- Lack of flexibility.
- The employees or heads of departments are such undertaking are not allowed to take independent decisions.
- These enterprises are unable to take advantage of business opportunities.
- High degree of Red Tapism in day to day operations.
- Political interference through the ministry
14. Briefly explain any 3 types of partners in a partnership business.
Answer
a) Active Partner : An active partner is one who contributes capital participates in the management of the firm. He shares it profits, loses and his liability is unlimited.
b) Sleeping Partner : Partners who do not take part in day to day business is called sleeping partner.
c) Secret Partner : A secret partner is one whose association with the firm is unknown to the general public.
d) Nominal Partner : A nominal partner is one who allows the use of his/ her name by firm but does not contributes to its capital.
15) " It is a form of business which is owned and managed by a single individual "
a. Identify the forms of organization stated above.
b. Explain its 2 merits.
Answer:
a. Sole Proprietor
b. Merits
Quick Decision Making : A sole proprietor can take quick decision and prompt action in all business matters.
Confidentiality of Information : A sole decision making authority enables the proprietor to keep all information related to business operations and confidential.
Direct Incentive : A sole traders is the sole recipient of profit. This provides the maximum incentive to the sole trader to work hard.
16. Explain the cause of Business Risk.
Answer :
Cause of Business Risk
a) Natural Cause : Natural calamities are unpredictable and are beyond the control of businessman.
Flood , Earthquake, heavy rains, lightning , famine, storms etc. are examples of natural risk.
b) Economic Cause : These included uncertainty relating to demand for goods, competition, price, collection of dues from customers, change of technology or method of production etc
c) Human Causes : Human causes include such unexpected events like dishonesty, carelessness or neglegence of employess etc.
d) Government Policy : Government Policy regualtion, change in export and import policies , licensing policies, Taxes structure etc. may cause heavy losses to a businessman.
e) Physical Causes : Physical causes include loss due to mechanical deficits, accident from defective machinery.
17) Explain any 4 objectives of business.
Objectives of business.
a) Earning Profit : The main aim of any business is to earn profit. No business can survive long far without adequate profit.
b) Innovation : Innovation means introduction of something new to the market.
c) Market Standing (creation of customers ) : Creation of customers increase market share it is an
important objective of a business.
d) Productivity : Productivity means the efficiency of business firm to produces its output.
e) Physical and Financial Resources : Business requires physical resources and financial resources.
f) Social Responsibility : Social Responsibility refers to obligation of business.
18) List out any four merits of Government Company.
Answers :
Merits
a) A government company can be established under the Indian Companies Act.
b) It has a separate legal entity apart form the government.
c) It enjoys autonomy in all management decisions.
d) This companies by providing goods and prices at reasonable prices can control the market.
19. Guna and Sons Private Limited and Rama limited are the two companies incorporated in India.
a. Identify the type of company.
b. Point out three difference between these 2 types of companies.
Answer:
a. Guna and Sons Private Limited - Private Company
Rama limited - Public Company
20. Describe any five limitations of Public Corporations.
Answer :
Limitations
a) In reality, a statutory corporation does not enjoy as much operational flexibility.
b) Government and political interference has always been there in major decisions or huge funds are involved.
c) While there is dealing with public rampant corruptions exists.
d) The government has a practice of appointing advisors to the corporation board. These curbs the freedom of corporation in entering into the contracts and other decisions.
e) Since public corporation exists largely to serve the public interest and not guided by profit motive, commercial principles are likely to be ignored in its operations leading to inefficiency.
21. Explain any 5 objectives of business.
Answer:
Objectives of business.
a) Earning Profit : The main aim of any business is to earn profit. No business can survive long far without adequate profit.
b) Innovation : Innovation means introduction of something new to the market.
c) Market Standing (creation of customers ) : Creation of customers increase market share it is an
important objective of a business.
d) Productivity : Productivity means the efficiency of business firm to produces its output.
e) Physical and Financial Resources : Business requires physical resources and financial resources.
f) Social Responsibility : Social Responsibility refers to obligation of business.
22. Explain the various Auxiliaries to trade.
Auxiliaries to trade are the support services and activities that make the process of buying and selling goods and services easier, more efficient , and safer .
a) Transportation
Production of goods generally takes place in particular location. But these goods are required for consumption in different parts of the country. The hindrance of place is removed by transportation.
b) Banking and Finance
Banks helps business firms to overcome the problem of finance by giving necessary funds. The hindrance of finance can be removed by the help of banking.
c) Insurance
Business involves various types of risks insurances provides protection in all such cases. Hindrance of risk can be minimized with the help of insurance.
d) Warehousing
Warehousing helps business firms to overcome the problem of storage. The hindrance of time can be removed with the help of warehousing.
e) Advertising
Advertisement plays an important role in the process of marketing. This advertisement removes the hindrance of knowledge in the process of trade.
23. " It is an artificial person having a separate legal entity, perpetual succession and created by law ". Identify the organization. Explain its 4 merits and 4 demerits.
Answer:
Joint Stock Company
A company can be described as an artificial person having a separate legal entity, perpetual succession, and a common seal. As per section 2(20) of the companies act 2013. A Company
means company incorporated under this act or any other previous company law.
Merits
a) Limited Liability : The shareholders are liable to the extent of the amount unpaid on the shares held by them.
b) Transfer of Interest : The shares of a public limited company are freely transferable
c) Perpetual Succession : Existence of a company is not affected by the death, retirement , resignation, insolvency or insanity of its members.
d) Scope of Expansion : As a company has large financial resources, there is great scope for expansion.
Demerits
a) Complexity in formation : As compared to sole proprietorship and partnership firm of organization , formation of a company is more complex.
b) Lack of secrecy : As a information provided to register of companies is available to general public, it is difficult to maintain complete secrecy about the operations of the company.
c) Impersonal work environment : Due to separation of ownership and management. It is difficult for the owners and top management to maintain personal contact with the employees and events.
d) Numerous Regulation : A company is burdened with numerous restrictive in respect of aspects including audit , voting , filling of reports and preparation of documents etc.
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