Ch- 1

1. Ananya was doing a research on banking sector for her assignment. While browsing through the
website of Reserve Bank of India, she came across a specimen of a type of Hundi which is like
any other bearer instrument and is payable to the holder or bearer.In context of the above case:

(a) What is a Hundi?

(b) Identify the type of Hundi being described above.

(c) Describe briefly any two other types of Hundi.

2. Karan is running a grocery shop in the nearby local market whereas his friend Priyanshu works as a
finance manager in a reputed IT company. In context of the above case:

(1) Identify the different types of economic activities both the friends are engaged in.

(2) Distinguish between the two different types of economic activities as identified in part(1) of the
question. (any two)

3. Anu and Renu are good friends. After completing a course in Fashion Designing, ten years back, both
of them started their own separate outlets in Jaipur and Delhi respectively to earn their livelihood. Renu
buys readymade garments from various manufacturers and sells them in her store. However, Anu
designs her own range of clothing. She gets them made through her team of designers and sells them
directly under the brand name Eleganza. Although, both of them are making good returns on their
investments but in past they have also incurred huge losses due to changes in consumer tastes and
fashion. Also, despite being in business for such a long time they cannot say with certainty as to what
amount of profit will be earned by them in future.

By quoting lines from the paragraph identify the various Features of business discussed above.

4. Shourya is running a take away fast food joint in Kanpur under the name "Swaad. Recently, when his
cousin Rahul organized a party at his place he had placed an order for food at Swaad' worth 5000.
However, Shourya declined to take the money from Rahul because of his love and affection for him.In
context of the above case:

1. Will this activity related to the of supply of food from Shourya's restaurant to Rahul be classified as a
business activity? Why or why not?

2. Mention the related feature of business.

5. India is the largest milk producer of the world. Moreover, increasing demand of milk and milk product
has made dairy farming a profitable business. Considering these facts Raghu, an industrialist has decided
to set up a dairy farm and a cheese producing unit in Haryana.He plans to deal in an extensive range of
Fresh Mozzarella; Processed Cheeses; Pizza Cheese,Cheese Singles; Naturally Flavored Cheeses (with
Black pepper, Garlic, Cumin, Herbs Spice): Mascarpone; Mozzarella & Grated Cheese for Pizza in various
combinations. In context of the above case:

(1) Identify the different kinds of industries Raghu wants to set up.
 (2)State and explain the categories of types of industries to which the different kinds of industries as
identified in part (1) belong to.

6. Good Health Ltd. is a name to reckon with in the Organic food segment. The company enjoys a 30%
market share in this segment over the past four years. It introduces new range of products on a regular
basis keeping in mind the changing needs and preferences of people. Through the best use of available
resources its work efficiency is high. Moreover, in order to keep the high morale of its managers various
professional programmes are organized by the company from time to time.

In context of the above case.

1) Identify the various objectives of business being discussed in the above paragraph.
2) Also, state any two other objectives not mentioned above.

7. Harshit runs a well known departmental store in Delhi. He procures different kinds of products from
all over the country through railways, roadways and airways. He also owns #godown to hold the stocks.
He has also taken an insurance policy worth 10 crores for his business. Moreover, he has taken a loan of
12,00,000 from ICICI Bank in order to meet short term financial needs of his business. He has placed
information about his store on the hoardings, bill boards, etc. in order to popularize them. In context of
the above case:

Identify the different auxiliaries to trade that are being used by Harshit in his business by quoting lines
from the paragraph.

8. Roshni Ltd. is a Mumbai based Indian multinational company engaged in design. manufacturing, and
marketing of products related to power generation, transmission, and distribution. It has also set up a
factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity
in rural areas.

(a) Name any two values which the company wants to communicate to the society.

(b) Identify and explain the type of objective of business being fulfilled by Roshni Ltd. by setting up a
factory in rural areas.

(c) Briefly explain any two economic objectives of a business organisation.

9. Kapil Sharma wants to start a business of fashionable items. But he is hesitating to go ahead with his
plans because of the various kinds of risks which are inherent in every business. H consults his friend
Sunil in this regard for guidance about ways to overcome such situations effectively in his business

In the contest of above case

1) Describe briefly the various types of business risks.

2) State any two suggestions which Sunil is likely to give to Kapil Sharma to overcome such
situations effectively in his business.3
3) Explain briefly any two causes of business risks

10. Radhika is running a small scale business of manufacturing decoration items in Delhi. Every year she
contributes 10% of her profit to Manyata foundation, a popular NGO in Noida which supports the
programs based on senior citizens healthcare and carrying out activities for them in the hospitals such as
entertainment programs, festival celebrations and many more day-to-day activities. In the context of
above case

1. Identify and explain the type of objective of business being fulfilled by Radhika by providing financial
help to Manyata foundation.

2. Also explain any three other objectives of business of the same type as identified in part 1 of the
question.

11. Radhika Construction Private Ltd. deals in constructing buildings, bridges, road, and dams by using
cement, steel, bricks and wood. There are 456 employees in a takes full care of the quality of work done.
Recently, the company got a contract workings in this company. The Managing Director of the Company,
Mr Raghurajan, company has got a special division also, which owns one hundred trucks. These truck of
constructing five big buildings, two bridges, one long road and one dam. The are used for transporting
goods on hire. This division is working quite successfully under the supervision of the Divisional
Manager, Rekha Shrivastava, In the above paragraph, two types of industrial activity has been described.

Identify the main types of industrial activities by quoting the relevant lines.

12. Multi industries Private Ltd is a big company of Private Sector, It produces several agricultural
products like sugarcane cotton, etc. This company uses all its own agricultural products as the Raw
Material instead of selling them in the market. The sugar cane is used to produce sugar and similarly, the
cotton is to make cloth. The company has established its sugar and the cloth mill at a place where the
people were very much worried due to unemployment. In this way, the company provided employment
to about 500 local people, Besides, the company paid a special attention to greenery all around its
factories. The company's business is growing fast.

To which sub-type of industries are related the different products described in the above para ?

13. Tushar Unitech Private Ltd. is a popular company of its region. Its product is very much liked in the
market. The traders are in a race to become the company's distributors. The company had been earning
a big profit for many years. But the company's half yearly report this year is not good. There is hardly
any fall in the buying and selling of the company, but the speed of earning profit has showed. down. The
Top Management is worried about the present status of the company. A team of specialists from
outside has been called to solve this serious problem. The team of specialists has presented the
following reasons for the shortfall in the profits of company after a thorough examination.

1) Increase in competition

2) Theft of cash and goods by the employees

3) Wrong estimate of sale

Identify the main types of reasons for the miserable condition of the company as stated in the above
paragraph.
14. Rama Krishana Pvt. Ltd. is a well-known company of its own industry. This company Ms earning a
considerable profit. Inspired by the great profit, both the classes, the proprietors and the Employees, are
using their atmost skill. Not only this but both the sides are also feeling inspired to do something special.
They are making efforts to make good quality products available to the customers at a low price, to pay
the shareholders a handsome dividend and the employees reasonable remuneration, The company's
foundations has become so strong that there is no doubt about its continuity in the market for a long
time. On the other hand, an other company of the similar industry namely Rama Pvt. Ltd. which is at the
point of death, is likely to get closed any time because of decline in the profit.

a) Which aspect of business has been mentioned in the above paragraph?

b) Quoting the relevant lines, write about the three points of the concerned aspect ?

15. Chanchal and Komal are 2 twin sisters. They have completed their M.com studies. Now they are in
such of employment. After a thorough study, they decided to set up a floor mill. They are main job was
to purchase wheat from the market and have it ground into flour.Their flour was available in the
packings of 5 kg. 10kg and 50kg. They named their brand' Mann Ka Dular' and also decided that they
would have only 8 percent profit on cost. Their activity of buying and selling became continuous (non
stop). In no time their brand became popular in the market. The main reasons of their popularity were
superior quality and low price. Their business was running well but one day, their factory caught a
terrible fire. They have to suffer a heavy loss. The brave sisters did not lose their heart. Gradually their
business was back to normal. Now, they are fully satisfied with their business.

(a) On the basis of the information given in the above paragraph tell to which aspect of business is it
related

(b) Quoting the relevant lines write about five points in the context of (a)