Small Business — Business Studies STD 11 Commerce — Question

Kiran is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, she is wondering whether she should form a company to better manage the business. She also has plans to open branches countrywide.

On the basis of the given information about Kiran, answer the following questions:
(a) Explain two benefits of remaining a sole proprietor.
(b) Explain two benefits of converting to a joint stock company.
(c) What role will her decision to go nationwide play in her choice of form of the organisation?
(d) What legal formalities will she have to undergo to operate business as a company?

"Earning of profits is the main objective of a business and other objectives are there to aid it only." Do you agree? Justify your answer.

Started in 2002 as an Electrical-Contracting Agency by Mr. Surinder Singh, Amber Electrotech has now evolved into a full-fledged turnkey solution provider with activities ranging from substation, internal and external electrification for conventional as well as high end solutions. Amber Electrotech works with an aim to provide best-in-class electricalservices for internal and external electrification and substation jobs at highly competitive prices.
With a highly-passionate team of engineers on board, Amber Electrotech believes in not only meeting customer expectations, but to exceed them by miles. Right now, the company needs large amount of funds to a new electrical substation project of western railways for which it received some advance from railway department. Currently the company is incurring very high fixed operating costs. So, the company needs funds to meet its working capital requirements.
On the basis of the given information about Amber Electrotech, answer the following questions:
(a) Suggest two sources through which Amber Electrotech can meet its working capital requirement.
(b) State two merits and demerits of any one the source specified in part (a).

Ranging from steel, automobiles and software to consumer goods and telecommunications the Tata Group operates more than 80 companies. It has around 200,000 employees across India and thus has the pride to be nation's largest private employer. Mr. Ratan N. Tata has led the eminent Tata Group successfully. Approximately two third of the equity of the parent firm, Tata Sons Ltd., is held by philanthropic trusts endowed by Sir Dorabji Tata and Sir Ratan Tata, sons of Jamsetji Tata, the founder of today's Tata empire in the 1860s. Through these trusts, Tata Sons Ltd. utilizes on average between 8 to 14 percent of its net profit every year for various social causes. Even when economic conditions were adverse, as in the late 1990s, the financial commitment of the group towards social activities kept on increasing, from 670 million in 1997-98 to 1.36 billion in 1999-2000. In the fiscal year 2004 Tata Steel alone spent 45 crore on social services.
On the basis of the given information about the Tata Group, answer the following questions:
(a) If profit earning is the main objective of business, then why many business organisations like Tata Group are spending money for social causes?
(b) Identify the values that are reflected from above information about Tata group.

Identify various organisations that have been set up in the country by the government for promoting country’s foreign trade.

Phoenix Technologies Ltd., have developed such a washing machine through years of research which requires very less water for washing clothes and cleans them without damaging the cloth, as compared to other washing machines presently being sold in the market.
This machine use 3D wash system, whereby there are 3 nozzles to spray water inside the drum while it rotates 360 degree. This facilitates complete dissolving of detergents and deep penetration of detergents into the clothes while washing. During the rinsing stage, the 3D wash system helps better penetration of fresh water in to the clothes, thereby minimizing any detergent traces in the clothes.
This machine is available at a highly competitive price to motivate people from lower middle class to buy it. The company wants to provide information about new features, price, availability and brand name to the maximum potential customers.
On the basis of the given information about Phoenix Technologies Ltd., answer the following questions:
(a) Explain the service facility/aids to trade which the company can utilize to generate maximum sales.
(b) Explain other service facility/aids to trade facilitating smooth movement of goods from the producer to the ultimate consumers.

What is a Memorandum of Association? Briefly explain its clauses.

Prateek Yadav sent the consignment of the sacks of rice to his importer in London in the vessel of Shreya Shipping & Logistics Company. Prateek Yadav got his consignment insured against the sea perils. There were few rodents on the ship. They made holes in the deck of the ship and damaged Prateek Yadav's goods.

On the basis of the given information about Prateek Yadav, answer the following questions:

(a) Identify the type of insurance policy Prateek Yadav has taken for protection of his consignment.
(b) What are the three main types of insurance policy highlighted in part (a)?
(c) Do the insurance company is liable to pay the compensation? Explain the relevant principle of insurance applicable.

Mr. Naresh Sethi, a resident of India wants to import electronc goods from Mr. Charles Ahnita in Korea. He sends a trade enquiry to him for collecting information regarding the export prices and terms of exports. After receiving the trade enquiry, Mr. Charles Ahnita prepares a quotation called proforma invoice and sends it to Mr. Naresh Sethi
Enlist the next steps to be followed by Mr. Naresh Sethi related to the import procedure.

Dr. Anant Kumar is an Orthopedic surgeon in Jaipur Golden Hospital and Dr. Sukumar Anand, his friend is a Pedetrician who has set his own clinic. Dr. Sukumar Anand's wife, Ms. Sukumar Priya Anand operates a retail store specializing in the selling of antiques.
On the basis of the given information about different business, answer the following questions:
(a) Identify the type of economic activity undertaken by Dr. Anant Kumar, Dr. Sukumar Anand and Ms. Sukumar Priya Anand.
(a) Differentiate between them on basis of nature, capital investment, transfer of interest.