Model Paper 3 — Business Studies STD 11 Commerce — Question

Katherine wants to start a retail business of fashionable items. Change in taste and preferences of customers may result in loss in such type of business. She is hesitating as she is aware of risks which are inherent in every business. She approaches her friend Kristina who is the owner of a retail shop. Kristina advises her to go ahead with her idea as she will get profit as return for undertaking risk. She also told her that some risks in business can be insured by taking insurance policy.

On the basis of the given information about Katherine answer the following questions:

(a) What is Business Risk?

(b) Identify the main features of business risk discussed in the above case. Also quote the lines for the identified feature.

(c) Is change in taste and preferences of customers, pure risk or speculative, Why?

Explain the meaning of a government company. In what circumstances, is it a suitable form of public enterprise?

Compare the status of a minor in a Joint Hindu family business with that in a partnership firm.

The National Thermal Power Corporation (NTPC) will undertake the project to clean up the surroundings of Charminar. Better lighting will be provided at the monument which attracts of thousands of visitors every day. Financial and technical support will be provided by NTPC. No specific amount has been decided yet. Company's top level officials will draw up a plan that will bring glory to the monument.
In the first phase, Oil and Natural Gas Corporation and Neyveli Lignite Corporation India Limited were named sponsors to develop Tirumala Tirupati Devasthanams. The objective of the national consultation was to review the work done in phases and develop an action plan for the other new sites.
On the basis of the given information about National Thermal Power Corporation, answer the following questions:
(a) What benefits will the business derive by doing above mentioned work.
(b) Identify the value which is reflected from the working of NTPC.

Differentiate between:

• Memorandum of Association and Articles of Association.
• Private and Public Company.

The enterprise of Suzuki Motors of Japan and Government of India in early 80's is of astounding success and brought prosperity to the regions and win-win endeavour to all stakeholders. After establishing the affordable small car culture in the low income large target consumer base in India, the enterprise brought substantial revamp in living standard and speed up growth in the developing economy. The credit of this successful enterprise not only goes to the disciplined quality and technological excellence apt for the segment by foreign partner Suzuki but also Government of India spirit of allowing foreign partner a comfortable zone inspite of minority stake for better corporate governance. On the basis of the given information about Suzuki Motors of Japan, answer the following

questions:

(a) Identify the kind of business enterprise formed by Suzuki Motors of Japan and Government of India in early 80's.

(b) Explain any three benefits of the kind of business enterprise highlighted in above case.

Your friend is often confused about the meaning of commercial and central bank. He thought that the two are similar. How will 107 you make him understand?

Explain the merits and demerits of public-private partnership.

List sources of raising long-term and short-term finance.

Discuss the benefits of international business.