ANSWER KEY FOR ANNUAL EXAMINATION

1- (b)

2- (b)

3- (d)

4- (b)

5- (d)

6- Cheap jacks are the iterants that sells road side roads and move from one place to another based on
the profitability, they don’t have a fixed place for operations.
7- (a)

8- Overdraft is when banks allow to withraw more than what is deposited in the account of the
depositer.
9- (c)

10- (c)

11- (c)

12- (d)

13- (b)

14- (a)

15- (d)

16- (a)

17- (b)

18- (a)

19- False, it is a public corporation

20- (a)

21- A) this is a speciality store.

B) deal in specific line of product,
22- Limitations:
  The bureaucrat’s over-cautious and conservative approval does not allow them to take risky
ventures.
 No action can be taken unless it goes through the proper channels of authority.
 Lot of political interference through the ministry.
 These organisations are usually insensitive to consumer needs and do not provide adequate
services to them.
23-
a) BUSINESS ETHICS-Refers to the moral values or standards or norms which
govern the activities of a businessman. Ethics define what is right and what is
wrong. By ethic we mean the business practices which are desirable from the point
of view of Society. The purpose of business ethics is to guide the managers and
employees in performing their job. Example of
business ethics are charging fair price from customers, giving fair treatment to
workers, earning reasonable profits and paying taxes to... the government
honestly.
b) Responsibility Towards workers:-
(i) Providing fair compensation and benefits,
(ii) Providing good and safe Working conditions,
iii) To develop a sense of belonging-ness.
24- Importance of Copy right with three points each.

25) Debentures :- Debentures are the important debt sources of finance for raising long term finance.
Debenture holders get fixed rate of interest on Debentures interest is paid after every six months or one
year. They are like Creditors of a company.

Issue of Share :- The capital obtained by issue of shares is known as share capital. The capital of a ompany
is divided into small units called share. If a company issue 10,000 shares of Rs. 10/- each then the share
capital of company is 1,00,000. The person holding the share is known as shareholder. There are two types
of share (I) Equity share (11) preference share.

26)
Basis Private Company Public Company
1) Minimum paid-up share capital 1 Lakh 5 Lakh
 2) No. of Members Minimum -2 Minimum-7
Maximum-50 Maximum-No Limit
3) Invitation to public Pvt. Co. can't invite public Public Company can invite
for issuing shares and public for issuing its shares &
debentures debentures.
4) Transfer of shares No freedom to transfer No restriction on transfer of
shares. shares.

27) Self funding, crowd funding, angel funding, Venture capital etc
OR
Supplies imported machines and raw materials
It exports small units of the products
Serves as a technology business accelarators
Helps in creating awareness about technology.

28) a) C2C business

b) Basic human values of honesty and genuine nature was ignored by dipti.
c) Benefits
Elimination of Middlemen :- Ever since the e-Business came into existence,
the wholesalers
and retailers have started
disappearing. Now, most of the producers have started having, direct contact with
customers. As a result the consumer get goods on less price.
3. Easy Distribution Process :- Many types of information and services be received
on computer through e-business. This has simplified the system of distribution and
has also made it less
costly
4. Lower investment required :- In this. you don't require any big showroom or
huge investment. You need only computer and Internet.
5. Easy to launch new products :- Any company can launch its new product in the
market through the medium of E-Business. A complete information about the product
is made available on Internet. In this way the consumer and other businessmen get
information about the new product while sitting at home.
6. Movement towards a paper less Society :- Use of internet has considerably
reduced ependence on paper work.

Limitation
 i) Low personal Touch :- (Lacks personal touch with customer as it is conducted
over the internet.)
ii) Incongruence between Order taking/giving and order fulfillment speed. (fast
in order taking but slow in order fulfillment)
iii) Need for Technology Capability and competence of parties to ebusiness.
(fairly high degree of families with computer working internet facility
required.)
iv) Increased risk due to Anonymity and Non-tracebility of Parties:- (Difficult to
establish/check identity & location, someone else may transact in your name
risk of leakage of confidential information such as credit card details.)

29)
1. Selection of line of Business: They selected to start a boutique in Karol Bagh
2. Size of Firm : They wanted to start business on small scale. Therefore the risk factor is less and capital
requirement can also be met.
3. Choice of form of ownership: The choice of the suitable form of ownership will depend on such factors
as the line of business, capital requirements, liability of owners, division of profit, legal formalities,
continuity of business etc. Here choice of form of ownership is partnership. They have to decide about the
liability, division pf profit. They need to sign partnership deed
4. Location: Choice of location should be done based on the availability of raw material and labour,
transportation and communication. Karol Bagh is the prime location as well as wholesale market. So, the
choice of place is correct.
5. Finance: As they are bringing Rs 10 lac into business and taking an equal amount of loan to run the
business.
6. Physical Facilities: They need to buy machine, equipment to start the business.
7. Layout: They need to draw a layout plan showing the arrangement of the facilities, so, as to have
efficient use of resources
8. Competent Workforrce: They need to have competent and committed workforce to perform the activities
so that desired output is achieved.
9. Tax Planning: There are number of Tax laws which need to be taken into consideration before starting a
business.
10. Start up: Now after taken into consideration the above point and checking the feasiability of the project,
they can start with the launch of the boutique.

OR
Dr. Sanvi , an orthopedic surgeon in AIIMS Hospital is on employment whereas Dr Maruti , pediatrician
having own clinic is following his profession and his wife Aditi owns Cosmetic store which is a business.
Difference in the nature of tasks undertaken by them are given below:

Basic Business Profession Employment

Mode of Entrepreneur’s Membership of Appointment letter and

establishment decision and other professional body and service agreement
legal formalities, if certificate of practice
necessary
Nature of Provision of goods Rendering of personalised, Performing work as per
work services to the public expert services service contract or rules of
Qualification No minimum Qualifications, expertise Qualification and trail as
qualification is and training in specific field prescribed by employer
necessary as prescribed by the
professional body is a must
Reward or return Profit earned Professional fee Salary or wages
Capital Capital investment Limited capital needed for No capital Required
investment required as per size and establishment
nature of business
Risk Profits are uncertain Fee is generally regular and Fixed and regular pay; n
and irregular; risk is certain; some risk little risk
present
Transfer of Transfer possible with Not possible Not possible
interest some formalities
Code of No code of conduct is Professional code of Norms of behavior laid down
conduct prescribed conduct is to be Followed by the employer to be
followed
Example Shop, factory Legal, medical profession, Jobs in banks, insurance
Chartered accountancy companies, government
departments

30) a) The form of business is HUF

Features
Management by karta, limited liability, permanent existence, only male members, registration etc
b) Co-operative Housing Society :- The main aim is to provide houses to people with limited
means/income at reasonable price.
31) Export Process
Receipt of Enquiry and sending quotations
Receipt of order or indent
Accessing importer's credit worthiness
Obtaining export licence
Obtaining pre-shipment Finance
Production or Procurement of Goods
Pre-shipment Clearance
Obtaining Certificate of Origin
Reserving shipping space
Package and forwarding
Insurance of Goods
Customs Clearance
Obtain Mate's Receipt
Payment of Freight
Preparation of Invoice
Securing Payment

32) the principle of contribution is discussed.(explaination with regards to case study)

The principle is mitigation of loss..(explaination with regards to case study)

33) IDRs are like GDR or ADR except that the issuer is a foreign company raising funds from Indian
Market. IDRS are rupee dominated. They can be listed on any Indian stock Exchange
OR
DIFFERENCE BETWEEN ADR & GDR
Basis ADR GDR
listing Listing Only in American Anywhere in the World
Stock Exchange
Liquidity More liquid. Less liquid
Share Holder Only American Citizens All over the World Citizens
34)