Business, Trade and Commmerce — Business Studies STD 11 Commerce — Question

Sarthak has taken a fire insurance policy for his warehouse. Due to fire, he suffered a loss of ₹5,00,000 and gets a compensation claim from the insurance company. The damaged stock can be sold for ₹15,000.

Who has the right over this amount? Why? State the relevant insurance principle in this regard.

After reading an advertisement in the newspaper about an upcoming public issue of preference shares of a pharmaceutical company, Tushar made up his mind to invest money in that issue. Later on, he discussed his plan with his friend Vikesh who he is a stock broker. Vikesh, on the contrary, advised him to invest in equity instead.
Give any three possible reasons because of which Vikesh wants Tushar to invest in equity and not in preference shares.

Define international business.

“Risk is an essential element of a business.” Do you agree? If yes, elaborate the statement with proper reason.

What are courier services? Give the name of any two courier companies and discuss their functioning too.

Services are those separately identifiable, essentially intangible activities that provide satisfaction to the consumers. In context to business, how can you define services?

Pramesh was a successful businessman and owned a departmental store. He was aware of the fact that profit is the reward of risk-bearing. So, in order to earn more profits, he opened two more departmental stores and employed a team of young staff to look after the stores. Initially, the staff was very sincere and Pramesh earned huge profits from his 3 departmental stores. However, over the last two years, his business is running into losses. On close analysis, he found that his staff was not giving much attention to the customers. Moreover, there were many cases of embezzlement (misappropriation of funds) by the employees.
Identify and explain the main cause behind the losses in Pramesh's Business.

Mahendra Singh Dhoni is an Indian international cricketer. At the beginning of his career he worked as a Train Ticket Examiner in 2001 at Kharagpur railway station, in West Bengal. His father Pan Singh, worked for Public Sector Undertaking and his mother Devki Devi is a housewife. He has an elder brother, Narendra Singh Dhoni, who is a politician, and a sister, Jayanti Gupta, who is a teacher.

On the basis of the given information about Mahendra Singh Dhoni, answer the following questions:

(a) State by giving reasons, whether he and his family members are engaged in economic or non-economic activity

(b) Also state which type of economic or non-economic activities are they engaged in

There is a group discussion taking place in Class XI regarding Social Responsibility of Business. Vineet feels that a business should be socially responsible towards the society as it exists in the society while Ramesh is against it as the basic objectives of a business is to earn profit.
Justify Ramesh's view point by giving four arguments.

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.