Model Paper 3 — Business Studies STD 11 Commerce — Question

What is business ethics? Mention the basic elements of business ethics.

Suresh Goyal wants to start a business of manufacturing and distributing room coolers. He is facing a lot of problems as this is his first venture. The demand for room coolers is high in summer season. He wants to make sure that he can meet the orders as and when demanded. To beat the existing players in the market, he wants to sell his product in five cities and does not know how to find customers in different cities. Not only this, he has to ensure that the room coolers reach the customers in different cities. He had sound technical knowledge but was not successful in marketing the output. All this requires a lot of money which is another problem.
State any four problems of small scale business faced by Suresh Goyal.

Flavour Mobiles is a leading smartphone brand in the country with numerous accolades under its belt. Company was started in 2009 with an aim to bring the benefits of Smartphone telephony to the masses. Within a short span of time, Flavour has become the brand of choice of the discerning mobile consumer in a country which has one of the fastest growth rates in mobile device consumption. For this purpose company officials interact with different suppliers to get necessary raw material through internet to manufacture its products. Onnext Battery Ltd. is leading supplier of battery to the company. Flavour Mobiles use network of computers to interact with their suppliers. Transactions like placing orders, delivery of components, making payments are done electronically through internet. The company officials finds dealing through internet quiet convenient. Moreover, internet has enabled them to interact with many suppliers from different nations and select the one which offers then required raw material at low price.
On the basis of the given information about Flavour Mobiles, answer the following questions:
(a) Identify the two benefits of e-Business transactions highlighted above by quoting the line from the case.
(b) Explain the two other benefits of e-Business transactions to an organisation.

List the documents required for the incorporation of a company.

What do you mean by itinerant traders. Explain any three types of itinerant traders.

If one starts a business, which objective will be of utmost importance to you and why?

After doing her M.Com from 'Himachal Pradesh University of Shimla', Komalika 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. Komalika 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 Komalika from the surplus of the profits.
On the basis of the given information about Komalika, answer the following questions:
(a) Name the process that helped Komalika in developing an idea into an opportunity.
(b) Identify the kind of organisation that was formed by Komalika.
(c) State any two values which Komalika wanted to communicate to the society.

What difficulties will be faced by the consumers if retailers are eliminated from the chain?

Gupta Brothers inherited some ancestral property. They decided to form a Hindu Undivided Family Family (HUF) consisting of four male members and invested the ancestral property into the business. The family is headed by Shyam Sunder Gupta. The business took a loan of ₹10 lakh from Syndicate Bank for a term of three years. Due to poor financial position of the business, the family members were unable to repay the loan. The bank filed a suit for the recovery of loan. Shyam Sunder Gupta pleaded the court that as the entire loan was taken for the purpose of business, all members of the business were liable for the repayment of the loan. The court gave a decision and stated that all the members except Shyam Sunder Gupta, are liable for repayment of the loan only to the extent of their share of co-parcenary property of business. However, Shyam Sunder Gupta had to pay the balance amount from his personal property.
On the basis of the given information, answer the following questions:
(a) Why did the Court hold Shyam Sunder Gupta responsible for paying the business liabilities out of his personal assets?
(b) Explain any three disadvantage of a Hindu Undivided Family Business (HUF) not discussed above.

If registration is optional, why do partnership firms willingly go through this legal formality and get themselves registered? Explain.