Sources of Business Finance — Business Studies STD 11 Commerce — Question

Give a comparative evaluation of forms of organisation.

Explain the steps taken by promoters in the promotion of a company.

VTM Textile Mills is one of the largest manufacturer of various types of textile products from Ahmedabad, Gujarat. The company is equipped with state-of-the-art dyeing, printing, and processing and garmenting facilities. Due to slackness in the market demand company is facing shortage of funds.
The company needs fund for meeting its day to day expenses like daily wages and overheads etc. The finance manager of the company approached one of its suppliers to grant two months credit on purchase of raw cotton. This would enable the company to get cotton supplies without making immediate payment.
On the basis of the given information about VTM Textile Mills, answer the following questions:
(a) Identify and explain the source of finance highlighted in the above case.
(b) Explain any four merits of the source of finance identified in part (a).

Give the differences between e-business and traditional business.

The social expressions Industry is still unorganised in India. Archies, which
pioneered the concept in Indian market, is the leader with more than 50% share of the organised sector. Archies is a strong brand with super connects between generations through its social expression products. Over the last few years company had made significant work in online shopping at www.archiesonline.com to make the shopping comfortable and satisfactory. The company has started servicing a few selective cities, would cover all the cities in India by entering into tie-ups local courier service provider. The company has plans to take active participation in exhibitions and fairs to reach new markets and thus enhancing sales. The company is likely to bounce back in sales of traditional products.
On the basis of the given information about Archies, answer the following questions:
(a) Identify and explain the type of emerging mode of business adopted by the company by quoting the lines from above case.
(b) Explain any four limitations of the type of business mode identified in above question.

What is international business? How is it different from domestic business?

Describe various types of insurance and examine the nature of risks protected by each type of insurance.

What are the measures taken by the Government to solve the problem of finance in the small scale sector?

Go Earth Ltd. manufactures jute bags and its factory have been set up in a residential area. The company has employed unskilled and semi-skilled workers and pay them lower wages on the pretext of at least providing jobs as the employment opportunities in the area is quite limited. During the production process, lots of residual is left. In order to decrease cost and increase profitability, the company dumps residual in the residential area which is sold after substantial time gap. This practice causes lot of inconvenience to the residents of that area.

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

(a) Identify and explain the objective of management which is ignored by the company.

(b) Identify any two values which the company has violated.

What advantages does issue of debentures provide over the issue of equity shares?