Business Services — Business Studies STD 11 Commerce — Question

Imagine life without your local market. What difficulties would a consumer face if there is no retail shop?

Ujjala Fireworks Industries is a 44 year old Indian company incepted in the year 1974 in Sivakasi, Tamil Nadu. Under the able guidance of Shri A. Mukesh Chandreshwar Nadar, The company emerged is one of the leading firecracker manufacturers in India producing the unique range of fountain crackers in various forms like the coloured and crackling ones. These crackers are known for their low emission of sound and are free from harmful fumes. Ujjala Fireworks Industries has entered into joint venture with a private company, Sri Sivakasi Fireworks Private Ltd. for nationwide distribution of products. The terms of the business alliance involves pooling of resources, expertise and sharing of risk and rewards by the enterprise. The owners of Sri Sivakasi Fireworks Private Ltd., has got their warehouse insured against fire. But the manager has not made any arrangements related to fire safety devices. He is not willing to install such devices because it is a costly affair. One fine day there is outbreak of fire in warehouse due to short circuit. He doesn't took any concrete step to control the fire. He makes a claim to the Insurance company. But, Insurance company refused to accept his claim on certain grounds. On the basis of the given information about Sri Sivakasi Fireworks Private Ltd., answer the following questions:
(a) Identify the principle of insurance violated by the manager of Sri Sivakasi Fireworks Private Ltd.
(b) Explain the principle of insurance identified in part (a).
(c) Identify any two values which have been violated by Sri Sivakasi Fireworks Private Ltd.

With enactment of LIC Act, 1956, an autonomous body, Life Insurance Corporation of India (LIC) was formed. The act defines its power, duties and functions. It has a separate legal entity. It is fully owned by government. It has independent financialpolicy and can raise funds by borrowing from public and government. However, it is notsubject to any budgetary accounting or audit control like railways. Its annual report is presented in parliament every year.

On the basis of the given information about Life Insurance Corporation of India (LIC), answer the following questions:

(a) Name the type of public sector enterprises referred in the above case?

(b) Give two other example of type of public sector enterprise identified in part (a) above.

(c) State any three limitations of the type of public sector enterprises identified in part (a above

Explain the meaning, features, advantages and disadvantages of super market.

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

A, B, C and D are partners in a firm with unlimited liability. But after 1991, A, B and C decided that they did not want to bear unlimited risk. With the consent of D, they made amendments in the partnership deed and changed their liability. Now A, B and C are responsible for the losses only to the extent of the capital invested by them.
On the basis of the given information, answer the following questions:
(a) Name the two types of partnership formed before and after 1991.
(b) State four differences between them.

State the types of life insurance policies.

The India Tourism Development Corporation came into existence in October 1966 and has been the prime mover in the progressive development, promotion and expansion of tourism in the country. The authorized capital of the corporation is ₹75 crores and the paid up capital as on 31.3. 2005 was ₹67.52 crores. 89.9% of the paid up equity capital of the corporation is held in the name of President of India. whereas Indian Railways is India's national railway system operated by the Ministry of Railways. It manages the fourth-largest railway network in the world by size, with 121,407 kilometres of total track over a 67,368- kilometre route.

On the basis of the given information about public sector undertaking, answer the following questions:

(a) How will you classify the above stated undertakings as a form of public sector enterprise?
(b) Differentiate between the form of public sector enterprise identified in part (a) on any four basis.

State the important privileges available to a private company.

Debentures are good from debenture holders point of view but not for business. Do you agree? Explain.