Forms of Business Organisation — Business Studies STD 11 Commerce — Question

Itinerant traders have been an integral part of internal trade in India. Analyse the reasons for their survival in spite of competition from large scale retailers.

Mr. Amar has two sons Vikas and Sanjay. After completing their graduation his sons decided to start their own business of manufacturing readymade men's clothes. Since they had a commercial space with them near their house so they started a factory. They purchased the cloth in bulk for trousers and shirts from wholesale market. They employed 10 tailors and 2 salesman. Since some of their relatives were already in same line, they did not face any problem in finding the buyers. They earned 20 percent profit in their first year of operation. During the second year of their operation due to theft in their factory, they suffered a loss of Rupees 50,000. Their father told them to not lose heart as risk is a part of every business. Their business start flourising and they opened their own outlet at a populous location in city after few years of operation and due to tough competition in business of men's clothing they decided to enter into women's clothing line too.
On the basis of the given information about business done by Vikas and Sanjay, answer the following questions:
(a) Identify any five features of business by quoting the line from the above case.
(b) Also, state the feature of business not identified above.

Discuss as to why nations trade.

After doing her M.Com. from 'Himachal Pradesh University of Shimla', Komal went back to her village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of women of her village, so she formed an organisation, the membership of which was open for all the women villagers on a voluntary basis by paying 500 only which will be treated as their capital. Komal knew that the land of her village was suitable for the farming of medicinal plants. So she motivated the members of her organisation for growing medicinal plants in their fields under the guidance and help of the local agricultural department. It was also decided that the organisation will purchase the produce of each member and sell the same to drug manufacturing companies at a very good price which was not possible for the members individually. The main objective of the organisation is to render services to its members rather than to earn profit. A computer training center for young boys and girls of the village was started under the guidance of Komal from the surplus of the profits.
On the basis of the given information about Komal, answer the following questions
(a) Identify the kind of organisation that was formed by Komal.
(b) How does a the kind of organisation identified in part (a) exemplify democracy and secularism? Explain.
(c) State any two values which Komal wanted to communicate to the society

A Company should have an ideal capital structure striking a balance between the owned funds and the borrowed funds. The finance manager should be efficient enough to do effective financial planning and take all the financial decisions, Investment decision, financing decision, and dividend decision in such a way that the shareholders' wealth is maximized. Excess of owned funds may reduce earnings per share and excess of borrowed funds may increase financial risks for the company.
i. Enlist the different sources of owned capital and borrowed capital used by a company with the help of a chart.
ii. Give any four differences between the two.

Sanchit, after completing his entrepreneurship course from Sweden returned to India and plans to set up a different type of business of selling standardized cosmetics under the name Cosmos traders by sending catalogues to the local residents of Lucknow and supplying goods to them through courier. He felt that such type of business does not require heavy expenditure on infrastructural facilities. It results in lots of savings to the buyers as well as sellers. The goods were delivered at the doorstep of customers. He is also aware of the fact that in this system, there are more possibilities of misunderstanding and mistrust between buyers and sellers. The receipt and execution of orders will involve long time and delays. On the basis of the given information about Cosmos traders, answer the following questions:
(a) Quoting the lines from the above paragraph, identify the fixed shop large retailing business in which Cosmos traders is engaged in.
(b) Explain any three merits of the type of fixed shop large retailing business identified in part (a).
(c) Explain any two limitations of the above identified business.

Distinguish between private companies and public companies.

Explain the usefulness of mail orders houses. What type of products are generally handled by them? Specify.

Discuss the problems faced by small scale industries.

Explain the role of SIDBI in promoting small scale enterprises.