Business, Trade and Commmerce — Business Studies STD 11 Commerce — Question

Give the features of limited partnership.

A factory owner took a fire insurance policy for his factory from New India Assurance Company by hiding the fact that the electricity board has issued him statutory warning letter to get his factory wiring changed at the earliest. Later on, the factory catches accidental fire due to short circuit in the electric board.

Explain the principle of insurance violated in this situation.

LMN Ltd. is dealing in manufacturing of wood and can furniture. It has its head office in Delhi and four branches in Chandigarh, Surat, Noida and Moradabad. Company is earning very good profit inspite of competition from Chinese furniture manufacturers. It files its income tax returns on time. Company officials are also updating their shareholders about their projects and provide fair return to them. On the basis of the given information about LMN Ltd., answer the following questions:
(a) Identify the interest groups towards with social responsibility is undertaken by the company.
(b) Identify any two values which have been followed by LMN Ltd.

Insurable interest is a fundamental principle of insurance. When should it be present in case of this is:

1. Life insurance policy.
2. Fire insurance policy.
3. Marine insurance policy.

State some unethical practices followed by a business.

You would like to start a business either as a partnership firm or a cooperative society but you are in a state of dilemma and would not be able to choose between them. Then in this case what will you do?

The banking system in India dated back to 1750 BC. In ancient India there is evidence of loans from the Vedic period. From the writing of many foreign travellers during Mughal period we came to know about the use of various instruments in the then great commercial centres. In the Mughal period historians found the evidence of loan deeds which were called dastawez. There were two types of dastawez - one was payable on demand and other was payable after a stipulated time. The most important class of credit instruments of exchange evolved in India at that time. Their use was most widespread in the twelfth century, and has continued till today.

On the basis of the given information about the banking system in India, answer the following questions:

(a) Identify the instrument of exchange prominent in the great ancient commercial centres of India.

(b) State two important features of the instrument of exchange identified in part (a).

After reading an advertisement in the newspaper about an upcoming public issue of preference shares of a pharmaceutical company, Tushar made up his mind to invest money in that issue. Later on, he discussed his plan with his friend Vikesh who he is a stock broker. Vikesh, on the contrary, advised him to invest in equity instead.
Give any three possible reasons because of which Vikesh wants Tushar to invest in equity and not in preference shares.

Akshay is a shareholder in a company holding 2,000 shares of ₹10 each on which he has already paid ₹7 per share.
What will be his liability in the event of company's failure to pay debts? Give reason in support of your answer.

Write four points of importance of international business for a country.