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ASSIGNMENT

CHAPTER 1
Q1.Different situations in different business are being elaborated below:

a) Sahil had a match stick factory in Nepal which got destructed by the recent
earthquake.

b) Samsung company was charged with evasion of tax and asked to pay fine in croses
which would lead to heavy losses for the company.

c) Mr. Mehul, a senior manager in a telecom company shared confidential information


about the company with a competitor which led to huge losses for the company.

d) Typewriters are becoming redundant.

Identify and explain types of business risk being referred to in all the above cases.

Q2. Deepak was working with company making tires. He was possessing one truck
through which he transfers their tires from one state to another state. Now he wanted to
set up his business in his village Bahadurgarh of manufacturing tractors to supply them
to farmers at reasonable rates. He sold his old truck to his friend at a profit of Rs 10000
and went back to his village. He shared his idea with his friends. They liked his idea and
wanted to contribute in this social work. One of his friend Nitin, decided to sell him raw
iron at reasonable rate.Shyam said he will deliver him engine of good capacity. Ankur
said he can deliver only some of the accessories as his uncle is in wholesale business
of car accessories. He has finally started the production and with the help of his friends
did the assembling part successfully. He donated first tractor made by him to one of the
farmer cooperative society so that they all can avail the benefit out of it.

a) Which type of product he was dealing in?

b) Is sale of truck and tractor an economic activity? Give reason to support your answer
be referring relevant feature of business.

c) Write any two values being followed by Deepak in the above case study.

Q3. Shenoy and Gurpreet were good friends. Both have done their masters together
from the same college. After completing their masters Gurpreet has done CA. Shenoy
had taken up a job at managerial level and Gurpreet had started his consultancy firm to
provide financial assistance to other business persons. Beside job, Shenoy has also
joined an NGO and worked hard to realize its objective related to providing free
education so that specially abled person can get job easily. On the other hand Gurpreet
had started to give free assistance to those persons who are illiterate but possessing
skills, so that they can utilize their skills and can contribute towards mission taken by
Government of India of SKILL INDIA. Name and explain the activities under taken by
Shenoy and Gurpreet by quoting the lines.

Q4. Identify the characteristics of business in the following statements:

a) Departmental stores purchasing goods from small manufacturers and selling under
one roof.

b) A car dealer buys and sells cars on regular basis.

c) A furniture dealer buys office chairs at Rs.500 each and sells them for Rs.650 each.
Rs. 150 per chair is the extra money earned to meet business expenses and for future
growth.

d) Workers at Maruti Udyog Ltd. Went on strike for more than a month demanding
raises in wages. The company suffered huge losses due to loss of production and sale.

Q5. Identify the different auxiliaries to trade highlighted in the following statements:

a) Jute bags produced in Kolkata are sold across India.

b) Companies send all original documents related to sale or purchase transaction


through courier or speed post.

c) The Central Warehousing Corporation provides safe and reliable storage facilities for
about 120 agricultural and industrial commodities.

d) Manufacture or traders provide information about their product to the customer


through ratio.

Q6. Identify the causes of risk highlighted in the given statements:

a) Higher interest rates increase the cost of production, reduces the purchasing power
of consumers.

b) Taj Hotel in Mumbai had to shut its operations for more than six months due to 26/11
terror attack.

c) Thousands of businessmen had to suffer heavy losses due to Gujarat earthquake on


26 January 2001.

d) Perishable goods such as ice cream and milk may be spoiled because of breakdown
of cooling machine or refrigerator.
e) An increase in excise duty or custom duty on a product may reduce the profit margin
of a business undertaking.

Q7. Deenanath has two buffaloes,one cow and one calf. He takes care of them and
sells the milk extracted from them to people. Also, the milk which is left unsold, is uised
by him for producing milk products like ghee, curd and sometimes kulfi too. He is very
popular for his honesty and pure quality of products. He gives entire credit of his
success to his love for the animals that he has.

a) Which kind of business activity is he engaged in?

b) Under which sectors is he working? State.

Q8. After doing B.Sc. Mohan has decided to start Poultry farm. Due to his good
behavior and hard work his business is increasing day by day. He has started sending
eggs to another country also.

a) Which kind of industry he has started?

b) Write down the name of any two other industries which are covered in (a).

c) Which type of external trade is discussed here?

Q9. Quick Solutions Ltd. Is a well known software company who enjoys goodwill
amongst its customers for providing satisfactory after sale services. It enjoys around
75% share in the software industry due to consistent hard work of Mr Amit Sharma CEO
of company. The main reason behind its success is harmonius relations with its
employees and a congenial work environment. The production manager makes
constant efforts to ensure that all the machines are serviced and maintained regularly.
5% of net profit is devoted towards maintaining night shelters and providing free food for
the slum children. Mr Amit believes in keeping himself updated with latest developments
in software field and tries to adopt them in his company.

a) Which two kinds of risks is the company trying to minimize?

b) Name two economic objectives which the company is trying to achieve.

c) Write any one value being reflected in the above case.

Q10. Organic 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.

a) Name the type of trade in above case.


b) Name the aids to trade being utilized by Organic Tea Ltd. And which utility does it
create?

Q11. Gurleen has just completed her M.Sc. in agricultural sciences and have started
applying for jobs in her field. She came to know about an organization in Banaras where
they rear silkworms for manufacturing the famous Banarasi silk sarees and decided to
join the same.

What is the process of rearing silkworms for silk called and name and state the type of
industry which she has joined.

Q12. Phoenix Technologies Ltd. Have developed such a washing machine through
years of research which requires very less water for washing clothes and cleans them
without damaging the cloth, as compared to other washing machines presently sold in
the market. The profit margins are kept low to motivate people from lower middle class
to buy the product. The company wants to provide information about new features,
price, availability and brand name to the target market.

Name and state the service/facility/ aids to trade which the company can utilize and
what hindrance does it remove?

Q13. Deepak Wadhwa and Sons have been carrying on the business of diamond
cutting since the last three generations in Bhuj,Gujarat. Since Bhuj is prone to
earthquakes, the firm has decided to insure their business premises and inventory with
Star Insurance Company.

Which kind of risks is the company trying to minimize?

Q14. Harish is a farmer and cultivates sugarcane on a large piece of land in a district in
Maharashtra. Harish has sold his ancestral holuse for Rs.40 lakhs. His son Saksham
proposes him to establish a sugar mill with his money as the raw material, sugarcane
will be available from their fields.

a) Mention and define the type of industry in which Harish is engaged in.

b) Also define the type of manufacturing industry his son, Saksham, plans to set up.

Q15. Ram, Mohan and Sohan are good friends. Ram is working as a doctor in a private
hospital and getting salary Rs.150000 per month. Mohan is a farmer and is producing
50 quintals wheat for his own consumption. Sohan is working as a teacher in a school
and is getting salary Rs.40000 per month. In addition to that Sohan teaches some slum
area children in the evening and does not charge anything from them. It gives him
Psychological and mental satisfaction.

a) Which type of human activity is performed by Ram?


b) Which type of human activity is performed by Mohan?

c) Quoted from the lines from the above case which type of human activity is performed
by Sohan?

Q16. Yash is a student of class XII commerce and he is good in studies. His father
gifted him a pen on his birthday. The cost of pen is Rs.80. After few days Yash sold his
pen to his friend Rounaq for Rs.100. He was very happy to earn profit of Rs.20.

After completing his studies he has started a pen manufacturing company in the name
of M/s Yash Pvt. Ltd.Due to good image of his pen his sales is increasing day by day
and he is earning huge profits. Then he has decided to give scholarships to weak girl
child of his school.

a) Can the transaction between Yash and Rounaq be termed as business transaction?
Why?

b) Can the transaction made by M/s Yash Pvt. Ltd.be termed as business transaction?

c) Identify the one value involved here.

Q17. If a person sells his domestic computer at a profit, will it be considered a


business? Also explain the characteristic of the business which is being highlighted
here.

Q18. Mr.Mukul sold his furniture and car on OLX as he was shifting base to New
Zealand. Is this business activity? Which feature of business is being referred to here?

Q19. All human being fulfill their different needs by performing certain activities.Can you
suggest and explain the activities undertaken by them.

Q20. Tea is mainly produced in Assam,while cotton in Gujarat and Maharashtra but
they are required for consumption in different parts of the country. How can this
hindrance of place be removed? Also under what business activity will it be
categorized? State.

Q21. ‘Better Solutions’ is an advertisement agency initiated by Sagar, Shenoy and


Lakshay. They have called a meeting to discuss the following points:

a) Increase the profit margin by 15% in the next quarter.

b) Capturing a bigger market share.

c) Making use of better quality cameras and latest techniques.


d) Making optimum use of cameras, lights, cameraman, finance,etc.employed by the
business.

e) Improve efficiency in all regards of functioning of business.

Which aspects of business objectives are being referred to here? Explain.

Q22. Darshan Sharma prepares ‘Sohanpapri’ for customers during Diwali season every
year. He prepared more Sohanpapri due to increased demand with adultered
ingredients. He employed women and children for packing and paid them less salary.
This way he generated good profit for himself.

a) Which objective of business is not fulfilled?

b) Give any two values neglected by Darshan Sharma.

Q23. In business activities, there are some activities that are involved in the removal of
hindrances in the process of exchange,i.e., from the producer to consumer.(a)Identify
them.(b)Also, classify the activities which help in removing the following hindrances:

i) Hindrance of place

ii) Hindrance of risk

iii) Hindrance of time

iv) Hindrance of finance

v) Hindrance of information

Q24. Different situations in different business are being elaborated below:

a) Sahil had a match stick factory in Nepal which got destructed by the recent
earthquake.

b) Samsung company was charged with evasion of tax and asked to pay fine in croses
which would lead to heavy losses for the company.

c) Mr. Mehul, a senior manager in a telecom company shared confidential information


about the company with a competitor which led to huge losses for the company.

d) Typewriters are becoming redundant.

(i) Name and explain the characteristic of business being referred to in all the above
cases.

(ii) State any two causes of business risks.


Q25. Mr.Mahesh is an Orthopedic Surgeon in Ganga Ram Hospital and Mr.Harsh, his
friend is an Eye Specialist who has set his own clinic.Mr.Harsh’s wife, Mrs.Savita
operates her jewellery shop. Compare and differentiate the nature of tasks undertaken
by them on any three bases.

Q26. Categorize the following into business,profession and employment:

a) A person repairing motorcycles on roadside.

b) A doctor.

c) A salesman.

d) An advocate.

e) A hawker selling toys for children.

f) Anandpal is the advocate of High Court.

g) Vikram is the manager of a car company.

h) Vinayak sells mobile phone on behalf of his employer.

i) Angad working as labour in a factory.

j) Rahul running a shop to sell stationery items.

Q27.Agam is getting fees from his economic activity whereas Malkeet is getting profit
from her economic activity. State the nature of their activities.

Q28. “An activity can be an economic activity in one situation and non economic in
another situation.” Do you agree? Give an example to justify the given statement.

Q29. Name and explain the two characteristics of business which involve possibility of
loss.

Q30. ‘Only sale or exchange of goods/services for profit is business.’Do you agree with
the statement? Give reason in support of your answer.

Q31. Vijay sells his mobile to his friend at a profit of Rs.1000.Will it be considered as a
business? Name and explain the characteristic of business which is being highlighted in
the given example.

Q32. “Business is an institution organized and operated to provide goods and services
under the incentive of private gains.” Discuss by giving any four reasons.
Q33. Jasbir is farmer. His younger brother Ajeet is a Company Secretary while his sister
Geeta is a nurse in a hospital. Name the economic activities in which they are engaged
and differentiate among them on the basis of:

(a) Nature of work. (b) Transfer of interest

(c) Risk element.

Q34. Why is commerce considered as the backbone of industry and other business
activities?

Or

How does commerce help in maintaining a free and uninterrupted flow of goods and
services between producers and consumers?

Q35. Classify the following into primary,secondary and tertiary industries:

a) Banking

b) Lumbering

c) Oil refinery

d) Warehousing

e) Mining

f) Sugar industry

Q36. Categorize the following into Extractive industries,Genetic industries and


Manufacturing industries.

a) Afforestation

b) Cotton textiles

c) Dairy farming

d) Sugar industries

e) Nursery

f) Mining

Q37. Identify the service which is related to the following cases:

a) The service which helps in removing hindrance of time.


b) The service which helps in removing hindrance of risk.

c) The service which helps in removing hindrance of knowledge.

d) The service which helps in removing hindrance of place.

e) The service which helps in removing hindrance of exchange of information among


producers,consumers and traders.

Q38. Name the following:

a) The trade in which goods are sold to foreign countries.

b) The trade in which goods are bought from foreign countries.

c) The trade in which goods are purchased and sold in comparatively smaller quantities.

Q39. In order to achieve an economic objective of ‘Profit Making’ ABC Ltd.inculcates in


unfair trade practices like charging higher prices,adulteration etc.

a) Which value are ignored by the company?

b) List any other three types of economic objectives.

Q40. A cloth manufacturer distributes its defective product at free of cost (after getting
them repaired from Nari Niketan at lower cost) to orphanage. Which values are being
attested in this solution? (any two)

Q41. An organization proposes the use of CFLS and LEDs which consume less
electricity than normal bulbs for its lighting arrangements. Which value is attained by the
organization?

Q42. In an organization the employees are being paid fair wages/remuneration. Which
values are highlighted here? (any two)

Q43. A soft drink manufacturing company uses dangerous stunts in the advertisements
claiming that its drinks make the user fearless and stronger. In your view what could be
the bad effects of this? (any two)

Q44. In an organization the good environment, refreshment corner and entertainment


rooms have been made for all employees. Which values haves been considered here?
(any two)

Q45. Tobacco manufacturer is planning to sell its products outside the schools and
colleges. Which values are violated here? (any two)
Q46. An employee has been terminated due to a small mistake without hearing
him,while the other one was not terminated on the same mistaker. Which value has
been neglected here?

Q47. A company manufacturing paints has been enjoying a prominent market position
since many years. It has been dumping its untreated poisonous waste on the river bank
which has created many health problems for the nearby village. Name the values which
have been overlooked by the manufacturer. (any two)

Q48. A factory established in a residential locality, uses machines creating heavy noises
while running. Due to noise pollution students cannot study properly and residents
cannot sleep/ work properly. Which values are affected here? (any two)

Q49. Cadbury India Ltd. a chocolate company launched a factory in Baddi, a small town
of Himachal Pradesh. The workers who enter in factory have to wash their hands with
sanitizer and wear overcoat,cap and shoes which are sterilized every day for which
company spends Rs.3,00,000 per month. All employees working in factory wear gloves
and are not allowed to touch either raw material or final product. All employees
irrespective of post have to take food in mess at the same place and same food for this
company. Name the values involved in this question. (any two)

Q50. In a visit to a restaurant, some youngsters were found smoking in spite of sign
board indicating ‘No Smoking Zone’. Suggest the values which help the youth to
become responsible citizens of the nation. (any two)

Q51. A wholesaler of tomato comes to know that due to less production the price of
tomatoes will increase heavily. He stores the tomatoes and during rising prices he earns
huge profits by selling them. From the earned profit he provides some money for social
activities also. In this situation which values he affects here? (any two)

Q52. G.S. Alag Ltd. while selecting employees gives due consideration to categories of
women, handicapped and other disadvantaged sections of society.

a) Identify the kind of objective highlighted above.

b) Explain any other two objectives of the same type.

c) Which value is being offered by the company?