PRACTICE QUESTIONS

DATE OF SUBMISSION: 25.02.2017

Q1	Name the form of Business organization formed with the motive of welfare of its members.
Q2	State the  Main  document  of a company form of organization.
Q3	Mention the form of public sector organizations that are accountable to specific Ministries.
Q4	Aman  started a business on his own. He has his father helping him with the accounts and his brother helps him with looking after customers in the evening. Aman pays a monthly salary to his father and brother. Identify the form of business organization.
Q5	What is the investment limit of Micro Enterprise engaged in Manufacturing.
Q6	What   are  Inter-Corporate Deposites?
Q7	Rama went to ‘Auchaan’ a store in Gurgaon with her family. While she was buying grocery, her husband bought clothes for himself and children were busy selecting toys. After shopping  they enjoyed quick dinner in the restaurant run by the store. They could manage to  do everything in three hours ,without wasting time in going from one shop to another. Identify the type of  retail outlet.
Q8	Mention the name of the document issued by the shipping company as an evidence of accepting the goods for carrying them to the designated destination.
Q9	The increasing concerns of women safety prompted Shabana to start Taxi services exclusively for women.She and her husband decided to establish ‘Remain safe Pvt Ltd’. Her friends supported her to  her new venture by purchasing shares in the company. She raised Rs10 Lakh by issue of shares and raised another 10 Lakh from bank loan. The company management decided to train 20 women as cab drivers.For this they selected women from different slum colonies and gave them six months aggressive training on driving  and basic car repairing. The company pledge to invest 30% profit earned to run a driving school for the lesser priviledge girls. All girls who enrolled for driving lessons were also taught self-defence technique. (a)  Identify the form of organization Shabana established. Quote the appropriate line or word in support of your answer. (b)  State the two features of this type of organization. (c)  State any one value adopted by management of ‘Remain safe Pvt Ltd.’
Q10	A factory owner insures his stock of goods. He fails to make necessary safety arrangements to protect the factory from fire. Later, factory catches fire and could not be controlled because there were no fire extinguishers in the factory. Will the factory owner receive insurance claim? Justify your answer.
Q11	Name the type of e-business transactions in the following cases: (a)  A customer buys a music software through internet. (b)  Centralised Inventory management for all stores of Reebok in New Delhi. (c)  Ankita sold her bicycle through quicker.com.
Q12	The Board of Directors of Neha Ltd. proposed to raise funds through the issue of equity shares. The board of Directors were in favour of issuing equity shares because they know that a company has to pay dividend to equity share holders only when it earns profits. Board of Directors decided to record losses for the first three years so that they do not have to pay dividends to shareholders. (a)  Identify any two values being ignored by Directors of the Company. (b)  State and explain any other  two merits of issuing Equity shares from the point of view of Company .
Q13	Arun is running a café. A shop next to him is on sale. His friend suggested him to buy the same and expand the business. Arun wants to buy but has no money. His friend offered his the money but wishes to be a partner in the business. Arun refuses the offer. State and explain any three reasons why Arun might have refused his friend’s offer.
Q14	Rohit and Gurvinder are partners selling electronic  products. They import the components from China and assemble them in their factory established in a rural area of Jharkhand. Most of the workers are Children and Women. They are paid very less salaries thus owners save on labour cost. They sell their products in nearby   countries like Bangladesh, Nepal and Srilanka. (a)  Identify the type of trade Rohit and and Gurvinder were doing. (b)  Quote the line from the paragraph which  suggest unethical practices being adopted by Rohit and  Gurvinder in their business.. (c)  State  and explain any two types of problems faced by this type of business.
Q15	Though a Bank is a financial Institution whose  main function is to accept Deposits and lend money, but it offers many other services to attract customers and compete with other Banks. In the light of the above statement explain any four services provided by a commercial bank.
Q16	Angle’s paradise was running as a primary school for last three years. They used to appoint their own staff for all core and non core activities. This year they started off with the secondary section as well. The administrator suggested the Principal to give cafeteria, house-keeping and security contracts to outside agencies. Principal did not seem to be very happy with the idea. She was worried about the quality of work these agencies might do. Explain to the Principal why they can go for contractual services .
Q17	Name and briefly explain the principle of insurance for each of the following statements: (a)  Insured must have economic interest in the subject matter of insurance contract. (b)  Insurer can stand in the position of insured once the claim is settled. (c)  The insured is expected to disclose all the important facts related to the property insured. (d)  Insurer is not liable for any uninsured causes or perils.
Q18	Small scale Industries contribute to the economic development of the country by producing 40% of the gross Industrial value added, yet they face financial crisis all the time. State and explain four other problems faced by Small scale Industries in our country.
Q19	Rosy was going for summer holidays. She was waiting for her train at the railway station. She suddenly remembered that she did not  have lock for luggage .She looked around and saw a man selling chain locks. She called him and purchased one chain lock from him. She went to the book store at the platform and purchased a magazine to read in the train. (a)  Identify the type of itinerant traders from whom Rosy purchased goods. (b)  Give examples of two other traders who sell low priced daily necessity goods. (c)  State   the name of the automatic vending machine which is used to withdraw money or know your balance. State and explain any one   limitations of automatic   vending machines.
Q20	Commerce is the sum total of activities that remove hindrances in the free flow of goods from producers to consumers. Explain.
Q21	‘Though profits plays an important role in the success of business but business have become conscious about its social responsibilities. ’ In the light of the above statement explain why business should assume social responsibility ?
Q22	Rehman  a fresh graduate decided to establish a small factory in his village. He spoke to his father who guided him about various scheme under MSMED Act. Rehman entered into an agreement with one of the big automobiles manufacturing  company for producing components for them with an investment of 50 Lakhs in plant and Machinery. He employed men and women in his factory and pays them fair wages. He ensured that the machines did not create any kind of pollution. He also organized night school for all the illiterate workers. (a)  Identify the type of enterprise formed by Rehman. Quote supporting line for your answer. (b)  State any three incentives provided  provided by the government to rural Industries. (c)  State the type of social responsibilities  Rehman performed.
Q23	There are numerous benefits of international business to both business firm as well as the host countries .Explain any two benefit  of international business each to the firm as well as to the nation.
Q24	Nidhi  wants to set up a company for manufacturing toys .Explain the steps she must take for promotion of her company.
Q25	It is a public sector enterprise established under Indian Companies Act and conducts business in competition with companies in private sector. (a)  Identify the type of public sector Enterprise. (b)  What is the minimum investment government has to make in such companies and who are/is the shareholder in the company? (c)  Discuss any two advantages and limitations of such companies.
Q26	“It is better to use our own funds because that costs us nothing”. In the light of this statement   bring out the merits and demerits of retained  earnings as a source of finance.
Q27	Name the retail organization where same type of commodities are sold in all the shops located all over the country and give an example of this. What are the features of such an organization?