Social Responsibilities of Business and Business Ethics — Business Studies STD 11 Commerce — Question

Classify the following into primary, secondary and tertiary industries.

1. Farming.
2. Banking.
3. Sugar Industry.
4. Warehousing.

How would you classify business activities?

Distinguish between capital market and primary market.

Give the benefits of Public-Private partnership.

Pramesh was a successful businessman and owned a departmental store. He was aware of the fact that profit is the reward of risk-bearing. So, in order to earn more profits, he opened two more departmental stores and employed a team of young staff to look after the stores. Initially, the staff was very sincere and Pramesh earned huge profits from his 3 departmental stores. However, over the last two years, his business is running into losses. On close analysis, he found that his staff was not giving much attention to the customers. Moreover, there were many cases of embezzlement (misappropriation of funds) by the employees.
Identify and explain the main cause behind the losses in Pramesh's Business.

Mr. Satish gets his house insured against fire of Rs. 20 Lakh with insurer A and for Rs. 10 Lakh with insurer B. A loss of Rs. 3 Lakh occurred.

(1) How much compensation can be claimed from A and B separately and Why ?

(2) Name the principle of Insurance in the above case.

Which business units are constituted under the tiny sector? This sector enjoys state patronage bilelaager in which areas?

Discuss some of the steps taken by the government to address the problem of pollution generated by industries.

Sanjay Bhattacharya kept his goods valued at ₹80,000 in a warehouse and had taken a fire insurance policy for the same. On the 25th of Feb., 2017, his stock caught fire. He however was not worried about the same and as he had insured his goods against the risk of fire, he did not even call the fire department for a fire fighting machines. The actual losses amounted to ₹65,000.

How much money can he claim from the insurance company? State the relevant insurance principle in this regard.

After completing his studies Manav started his own business. He invested ₹2,00,000 as capital which was given to him by his father. He obtained a loan of ₹1,00,000 from his elder brother Ravi, who was working as an assistant manager in Bank of Baroda. In the first year he incurred a loss of ₹50,000 and had to pay to his suppliers their outstanding bills. This created a financial problem for him and he had to take a loan of ₹1,00,000 from the Bank of Baroda on the personal guarantee of his brother. He started doing hard work, lowered the prices and informed his customers about the qualities of goods sold by him. Because of this the sales increased four times and he earned a net profit of ₹75,000 in the second year. His two friends Aman and Suresh showed interest in joining his business. They signed a partnership deed where they decided to share profits equally. Aman and Suresh invested ₹3,00,00 each but Suresh said that he will not take active part in working of the business because of his job.
On the basis of the given information, answer the following questions:
(a) Identify the form of business organisation started by Manav.
(b) Identify the form of business organisation formed after joining of his friends Aman and Suresh.
(c) What is a liability of Suresh in business formed in part (b) above?