Forms of Business Organisation — Business Studies STD 11 Commerce — Question

What is the role of profit in business?

Discuss briefly the legal position of promoters.

The merchant community derived power and prestige from guilds. Even kings were supposed to accept and respect the rules of these guilds. The guild chief dealt directly with the king or tax collectors and settled the market toll on behalf of its fellow merchants at a fixed sum of money. The guild merchants also acted as custodians of religious interests. They undertook the task of building temples and made donations by levying a corporate tax on their members. The commercial activity enabled big merchants to gain power in the society.

On the basis of the given information about the merchant community, answer the following questions:

(a) "Even kings were supposed to accept and respect the rules of these guilds". Identify the guild being specified in the case.

(b) Enlist the main functions of the guilds whose rules were accepted by even kings.

'Reva Chemicals' is a partnership firm. Sona and Mona one two partners in this firm. It is recorded in the Partnership Deed that Sona's liability is unlimited, whereas Mona's is limited. Sona wants to set up the Anti-Pollution plant in his factory, but Mona does not let him do so. Almost all the transactions of this firm are done through the internet. The firm Sells its goods to other Business units only. The firm gets its Research and Development work done by another firm, who is a specialist of such work.
i. Describe the type of partnership.
ii. ldentify the two values being overlooked.
iii. Name the type-business being done by the firm

What is the major reason underlying trade between nations?

Which values are of utmost importance while we get involved in e-business?

Laksha Limited issued prospectus, inviting people to subscribe for its shares. It came up with public issue of ₹ 30 crores of ₹ 30 lakh shares worth ₹ 100 each. It received applications for ₹ 15 lakh shares. Should the company proceed with allotment of shares.

All the members of a company sitting in the annual general meeting died due to a bomb explosion.
What will be the existence status of the company? Give reason in support of your answer

e-Business and outsourcing are new ways of doing a business. Do you agree? Justify your answer.

Raman started a gym named as 'Stay Healthy Gym'. He installed large number of machines and equipments of different types and appointed trained trainers to help the customers in the use of machines. Initially he kept a low fee per hour so that the boys and girls belonging to poor families may also avail the facilities of the gym. Very soon his gym became popular and he started operating in three shifts. For this, he pointed additional trainers. He also installed extra machines so that more customers could be enrolled. In two years, he started earning good profits. He took a nearby building on rent and started a 'Recreation and Health Club' for the senior citizens of the locality on very nominal charges. He also encouraged trainers working under him to participate in the cleanliness drive started by the Prime Minister. They agreed and started giving one hour daily for the cleanliness of the nearby areas.

(a) Identify the types of economic activity done by Raman and Trainers.

(b) Also, identify any two values that Raman tried to propagate.