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

Manas lived in a small village of Sikkim, where there were no formal education facilities. Therefore he came to Kolkata at his uncle's house, to complete his senior secondary school. After getting senior secondary school certificate, he decided to set up a small retail shop in the city. His uncle was very supportive and allowed Manas to use his vacant shop in a commercial area.
State any three types of shops that he can set up.

Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited general public to subscribe for its public issue of ₹50 crores through an initial public offer (IPO). It received applications for shares of ₹40 crores.
Can the company proceed with allotment of shares? Why or why not? Give reasons in support of your answer.

What is the difference between internal and external sources of raising funds? Explain.

Ajay is the sole owner of a shoe manufacturing factory. He took loan of ₹20 lakhs from Ace finance company for the expansion of his business. Because of continuous losses however, he was not able to repay the loan on time. Assets of the business were not enough for repaying liabilities in full. As a result, the finance company asked him to repay their loan. He refused to do so on the ground that the loan was taken by his business and not by him for his personal use. The company filed a case against him. The court gave decision in favour of the company on the ground that Ajay was operating as the sole proprietor and a sole proprietor did not have a separate entity distinct of his own. The court further stated that Ajay had unlimited liability and held him liable to repay the loan even by selling his personal property, if need be.
Identify and explain two features of the form of business organisation formed by Ajay by quoting the lines from the case.

Mr. Ankit is a Sole Trader. He runs the 'Prabhat Medical Store'. He needs some money. For this, he met the Branch Manager of a bank. Ankit told the Manager that he needed some such loan as may have the maximum limit fixed. He should be permitted to withdraw as much money as desired up to that limit from the bank. Also, he wants that the interest charged should not be on the maximum limit fixed but on the actual amount withdrawn. The Bank Manager said that they had got such a scheme under which loan could be granted only when the person availing loan kept some property with the bank by way of security. Mr. Ankit became prepared to fulfil this condition. In this way, the loan agreement was finalised between Mr. Ankit and the bank.
Identify this scheme of the bank and explain it.

Describe the reality of social responsibilities of a company.

What purpose is served by wholesalers providing warehousing facilities?

Write short notes on different types of marine insurance.

Small scale industrial units can be of different forms. State them.

Differentiate between moneylenders and indigenous bankers.