Emerging Modes of Business — Business Studies STD 11 Commerce — Question

Define one person company. Explain it salient features.

Which hindrance of commerce is highlighted in the following activities?
i. It removes the geographical separation between producers and consumers.
ii. Warehousing facilitates holding of goods till they are required.
iii. Advertising informs the consumers about the goods and services available in the market.
iv. Trade provides an organised market where buyers and sellers can contact each other.
v. Banking and Financing Institutions provide necessary funds to carry on business activities.
vi. There exist a time gap between production and consumption of goods.
vii. Insurance protects the goods in case of damage due to theft, fire, accidents.

What is the major reason underlying trade between nations?

What do you understand by insurable risks and uninsurable risks?

Abhishek Purohit gets his house insured against a fire for ₹ 25 lakh with insurer J and ₹ 15 lakh with insurer K. Due to outbreak of fire one night he suffered a loss of ₹ 8 lakhs.

(a) How much compensation can he claim from J and K? Why?
(b) State the relevant insurance principle in this regard.

Give the implications of the feature 'Separate legal entity' for a cooperative society.

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

Arnav is working as sales executive in XYZ Limited Company. He is getting ₹ 40,000 per month. His job is to enhance the sale of a company. Identify which type of economic activity is highlighted in the case and state some of its characteristics.

Harsh, Dinesh and Kunal were partners in a financing firm. Harsh and Kunal had gone for a meeting in London for analyzing business prospects in that country. In the meanwhile, Dinesh invested a huge amount in buying shares of a new company by borrowing money from Rajesh. This turned out to be a bad deal as the share prices soon fell down.
When Harsh and Kunal came back they said they were not liable to pay to Rajesh as they did not take the money.
On the basis of the given information, answer the following questions:
(a) Were Harsh and Kunal right in doing so?
(b) Under which aspect of partnership are they bound? Explain.

Newland Tea Ltd. is a Singapore based company dealing in import of tea from India and re-exporting it to many South-East Asian Countries. It has a huge godown near the sea port where it has made scientific arrangements for storing tea till it is re-exported.

On the basis of the given information about New land Tea Ltd, answer the following questions:

(a) Name and explain the type of trade referred above?

(b) Name the aids to trade being utilized by Newland Tea Ltd., and which utility does it create?