Business Studies 4 Marks Question

Yes, small business units can survive in a competitive market. Small businesses can be a competitive advantage by themselves when competing against larger and more established companies. Factors which make way for the scope of small business enterprises are as follows:
i. Limited resources: Individuals with entrepreneurial spirit but with limited economic means and resources always have the option of starting a small business.
ii. Flexibility: Small firms are usually owner-operated and this allows them to expand or reduce the scale of operation, try new products, new ideas without requiring lengthy approval procedures.
iii. Personal touch: Small enterprises are more likely to succeed in areas requiring personal touch in handling customers.

Need for IOC to do such activities are because:
i. To play a fair role in civic affairs.
ii. To provide and promote general amenities and help in creating better living conditions in general.
iii. To preserve and promote social and cultural values.
iv. To take steps for developing backward areas through providing free education to children of slum areas.
Two values upheld by IOC by discharging such activities -
i. Maintenance of society.
ii. Holding business responsible for Society Related Issues.

The private sector is the part of the economy that is run by individuals and companies for profit and is not state-controlled. The various types of organizations in the private sector include:
i. Sole Proprietorship: Sole proprietorship refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. This is the most simple and easiest way of business that can start with low-cost capital.
ii. Hindu Undivided Family Business: It refers to a form of organization wherein the business is owned and carried by the members of the Hindu Undivided Family (HUF). It is governed and dictated by the Hindu Law, which is one of the several religious laws prevalent in India.
iii. Partnership: Partnership is the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all. Partnerships come in two varieties: General partnerships and Limited partnerships.
iv. Cooperative Society: Cooperative society is a voluntary association of persons, who join together with the motive of the welfare of the members.
v. Joint Stock Company: A company is an association of persons formed for carrying out business activities and has a legal status independent of its members.
vi. Multinational Corporations: An MNC is a company whose business operations extend beyond the country in which it has been incorporated. Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate global management.

Four benefit of E-business are as follows:
i. Ease of formation and lower investment requirements: Unlike a host of procedural requirements for setting up an industry, e-business is relatively easy to start. The benefits of internet technology accrue to big or small business alike. In fact, internet is responsible for the popularity of the phrase 'networked individuals and firms are more efficient than networked individuals'.
ii. Convenience: Internet offers the convenience of 24 hours, 7 days a week, 365 days a year business that allows shopping well after midnight.
iii. Speed: Internet has high speed. This benefit becomes all the more attractive in the case of information regarding intensive products.
iv. Global reach/access: Internet is truly without boundaries. On the one hand, it allows the seller an access to the global market; on the other hand, it affords to the buyer a freedom to choose products from almost any part of the world. It would not be an exaggeration to say that in the absence of internet, globalisation would have been considerably restricted in scope and speed.

i. A Hundi is a negotiable and transferrable financial instrument that evolved during Medieval India in order to facilitate trade and credit transactions.
ii. Dhani-jog Hundi is the type of financial instrument being described above.
iii. The other two types of Hundi are:
a. Firman-jog Hundi: It is similar to a cheque payable on order either to the person whose name is mentioned in the Hundi or to any person so ordered by him. No endorsement is required on such a Hundi. It is just opposite of Dhani-jog hundi which is payable to the bearer only.
b. Darshani Hundi: It is similar to a demand bill and is payable on sight. It needs to be presented for payment within a reasonable time after its receipt by the holder.

i. Harsh is engaged in a Profession economic activity.
ii. The three features of the Profession are:
a. Profession includes those activities, which require special knowledge and skill to be applied by individuals in their occupation.
b. A professional is expected to abide by the guidelines or codes of conduct laid down by professional bodies.
c. Professionals earn income in the form of professional fees.

Retailers who do not have any fixed place to carry out their business activities are known as itinerant traders. They have to move from one place to another along with their goods in search of consumers.
Three types of itinerant traders are as follows:
• Peddlars and hawkers: These are the oldest form of retailers. They deal with non- standardized and low-value goods like fruits, vegetables, ice creams, toys, fabrics, etc., which they carry on a bicycle, hand cart, cycle-rickshaw, or on their head. They are small traders who move from one place to another to sell their products. They found in streets of residential areas, places of exhibition, near schools etc.
• Market traders: They are also small traders who sell their goods at different places on fixed days. For example, every Saturday or every Sunday in the 'Saturday market' and 'Sunday market', etc. These traders deal in a single line of goods such as toys, ready-made garments, fabrics, etc. They deal with low prices, low-quality goods. Hence, they cater to the needs of the lower-income group.
• Street traders: They are also known as pavement traders. These retailers can be seen in areas having a high population like bus stands, railway stations, etc. They deal in common use products, like newspapers, magazines, toys, stationery items, etc. They do not change their place of business frequently.

Only the goods that can be
i. Graded and standardised,
ii. Easily transported at low cost,
iii. Have ready demand in the market,
iv. Are available in large quantity throughout the year,
v. Involve least possible competition in the market,
vi. Can be described through pictures etc., are suitable for this type of trading.