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 Storeb. Medical storec. Legal consultancyd. Craft centree. Internet caff. Charted accountancy firm3. 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 contractb. Indemnity contractc. Unilateral contractd. None of the above6. Give full form of NSIC7. 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 shopsii. Vending Machinesiii. Cheap jacks13. 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 Valueb. Right to dividendc. Refund of capitald. Rate of dividend18. 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 ifa. The organisation is a sole proprietorship firmb. 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 e-business. 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.