Internal Trade — Business Studies STD 11 Commerce — Question

What is digital divide? How is it relevant in context of e-business?

ITC Ltd. is a Fast Moving Consumer Goods Company (FMCG) the company was founded in year 1790 by Henry Overton Wills. It's current headquarter is in Kolkata. Its currently headed by Y.C. Deveshwar (Chairman) and three executive directors viz., Nakul Anand Dhobale and K. Grant. It is the largest producer of Cigarettes in India with maximum brands of all range. It provides employment to near about 27,000 people. Apart from cigarettes the company is diversified into many other businesses also like hotels, papers, packaged foods, apparels, etc. In the list of world's most reputable companies, ITC positions at number 95. It is the only Indian FMCG company on Forbes Global 2000 ranking. The company is fulfilling its social responsibility by contributing to various programmes like ITC e-Choupal ecosystem, skill camp, vocational training, health camp and sanitation. The group has an account in State Bank of India for its business dealings.

On the basis of the given information about ITC Ltd., answer the following questions:

(a) The working of a successful private sector enterprise is highlighted above. Name and explain the other sector which co-exists with it in the mixed economy.

(b) Identify any two values which according to you can be associated with ITC Ltd.

What are the various types of industries?

Identify the type of cooperative society in which members provide financial assistance to other members. Also elaborate it.

What are core values?

Name any three special financial institutions and state their objectives.

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?

Elaborate the four functions of business at enterprise level.

Differentiate between contract manufacturing and setting up wholly owned production subsidiary abroad.

What do you mean by preference shares? Discuss its various merits.