SET - 1

1. Why is business considered an economic activity?

2. Identify any two businesses from the following types of
business for which a sole proprietorship form of organisation
would be more suitable?
a. Grocery Store
b. Medical store
c. Legal consultancy
d. Craft centre
e. Internet caf
f. Charted accountancy firm
3. Mention any two examples of statutory corporations.
4. What is virtual private network?
5. Which of the following is not applicable in life insurance
contract?
a. Conditional contract
b. Indemnity contract
c. Unilateral contract
d. None of the above
6. Give full form of NSIC
7. Name the quotation, which an exporter sends to the importer
in response to trade equity.
8. What is IEC number?
9. State, giving reasons, whether the following statement are
true or false:
i.
Public sector enterprises are run for the profit motive.
ii.
No Indian company carries on any operations outside
India.
10.
A factory owner gets his stock of goods insured, but he
hides the fact that the electricity board has issued him a
statutory warning letter to get his factorys wiring changed.
Later on, the factory catches fire due to short circuit of wiring.
Can he claim compensation?
11.
Priya Plastic Pvt. Ltd. Is manufacturing plastic toys for
children and earning a huge profit. However, a research
conducted on the toys shows that colours used in the
manufacturing toys are harmful for the children. When asked,
managing director admitted that they are using sub-standard
colours because they are cheap and economical. However,
managing director assured that the company will use standard
colours only after certification from research laboratory. The
company will expand its production capacity by employing
labour from underprivileged sections of the society.
Highlight the social values ignored by the company and social
values taken into account by the company.
12.
Explain the following terms in brief:
i.
Seconds shops
ii.
Vending Machines

iii.
Cheap jacks
13.
Explain GDR, ADR and IDR.
14.
Explain the following terms used in the trade:
i.
Cash on delivery (COD)
ii.
Free on Board (FOB)
iii.
Cost, Insurance and Freight (CIF)
15.
No Business is risk free. In the light of this statement,
explain the concept of business risk and its any three causes.
16.
What technical name is given to an organisation which
controls production and marketing facilities is more than one
country? Explain any three features of such an organisation.
17.
Differentiate between equity shares and preference
shares on the baisis given below:
a. Nominal Value
b. Right to dividend
c. Refund of capital
d. Rate of dividend
18.
Imagine life without your local market. What difficulties
would a consumer face if there is no retail shop?
19.
Explain the role of Indian Chambers of Commerce and
Industry in promotion of internal trade.
20.
The business assets of an organisation amount to Rs.
50.000 but the debts that remain unpaid are Rs. 80,000. What
cource of action can the creditors take if
a. The organisation is a sole proprietorship firm
b. The organisation is a partnership firm with Anthony and
Akbar as partner, who share profits and losses equally.
Which of the two partners can be creditors approach for
repayment of debt? Explain giving reasons.
21.
You are a businessman. You want to implement ebusiness. What is e-business? What are the resources
required for its successful implementation?
22.
Describe the role of small business in rural India.
23.
Mr. Ayaan Awasthi is interested in floating a private
limited company. Discuss the steps he should undertake.
24.
Define banking. Explain the types of banking accounts.
25.
Business is essentially a social institution and not
merely a profit making activity. Explain.
26.
As a source of finance profit is better than other sources.
Do you agree with the view? Give reasons for your answer.
Can a company grow indefinitely by reinvesting surplus
profits?
27.
Rekha Garments has received an order to export 2000
mens trousers to Swift Imports Ltd. Located in Australia.
Discuss the procedure that Rekha Garments would need to go
through for executing the export order.