Business Studies 3 Marks Question

In a company, preference shareholders experience both advantages and disadvantages. On the upside, they collect dividend payments before common stock shareholders receive such income. But on the downside, they do not enjoy any voting rights that common shareholders typically have.

Equity Share Capital is called risk capital as equity shareholders have a claim over the residual proceeds of the company. In other words, in the event of winding up, they are the last to be paid off after settling the claims of creditors and other external liabilities. In case the funds are insufficient to repay or settle external liabilities, equity shareholders are not paid off anything instead the uncalled amount may be called up from them.

Street traders are the small retailers who are commonly found at places where huge floating population gathers, for example, near railway stations and bus stands, and sell consumer items of common use, such as stationery items, eatables, ready-made garments, newspapers and magazines. They are different from market traders in the sense that they do not change their place of business so frequently.

i. Hindrances of Place (Transportation)
ii. Hindrances of Time (Warehouse)
iii. Hindrances of Information (Advertisement)
iv. Hindrances of Persons (Communication)
v. Hindrances of Finance (Banking)
vi. Hindrances of Time (Warehousing)
vii. Hindrances of Risk (Insurance)

The major exports from ancient India were spices, perfumes, medicinal herbs, pigments, pearls, diamond, sapphire, turquoise, Lapis, Lazuli, animal skins, cotton cloth, silk yarn, muslin, indigo, ivory, porcelain and tortoiseshell. The most valuable of the exports of India was silk.
The major imports of ancient India were horses, from Kabul and Arabia, dry fruits and precious stones. India also imported glassware from Europe, high-grade textiles like satin from West Asia, while China supplied raw silk and porcelain, wines, dry fruits, precious stones, corals, scented oils, perfumes and velvets.

a. Procedure of Export Trade.
Step 1: An international buyer may make a trade enquiry related to quality, price, and terms and conditions, among others.
Step 2: As a response to the enquiry of the buyer, the exporter sends the quotation in the form of 'Proforma invoice' indicating quality, selling price, mode of delivery, quantity etc.
Step 3: The buyer, when he agrees on the quotation, places the order receipt to the exporter for importing the goods or services.
b. • Advantages of International Business:
i. Obtaining Valuable Forex: A country can earn valuable Forex by exporting its goods to other countries.
ii. Division of labor: International business leads to the specialization of product production. Therefore, high-quality products that you have the greatest advantage.
• Disadvantages of International Business:
i. Competition with developed countries: Developing countries cannot compete with developed countries. Unless an international business is managed, it impedes the growth and development of developing countries.
ii. Exploitation: International business leads to exploitation from developing countries to developed countries. Prosperous and dominant nations regulate the economies of poor nations.