Small Business — Business Studies STD 11 Commerce — Question

Ratan after doing his B. Pharma degree from a reputed government college started two chemist shops in two different localities of his home town. Encouraged with the success of these shops, he started six more shops in different cities of the State. His strategy was to cut price, focus on lower and middle class patients and open shops near hospitals. He earned good profit margins. But the staff of the shops did not give much attention to the customers. Because of this mis-management he started incurring huge losses and his business failed.

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

(a) Identify and explain the main cause behind the business failure of Ratan.

(b) Explain any two other causes of risk associated with Ratan's business.

Explain the objectives of business briefly.

Nirma became a huge success and all this was a result of Karsanbhai Patel's entrepreneurial skills. Karsanbhai Patel had good knowledge of chemicals and he came up with Nirma detergent which was a result of innovative combination of the important ingredients. Indigenous methods were used, and also the detergent was more environment friendly. Consumers had a quality detergent powder, having an affordable price tag. Nirma focused on cost reduction strategies to make a place for itself in the market and earned a lot of profit. Nirma has always been known for offering quality products at affordable prices and thus creating good value for the consumer's money

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

(a) Identify and explain the types of objectives which the company has set. Quote the line for each type from above para.

(b) Identify any two values which company kept in mind while setting these objectives.

Briefly explain any four auxiliaries to trade.

What is meant by internal trade?

Discuss advantages and disadvantages of Mail Order House.

Harshit runs a well known departmental store in Delhi. He procures different kinds of products from all over the country through railways, roadways and airways. He also owns a godown to hold the stock. He has taken an insurance policy worth ₹10 crores for his business. Moreover, he has taken a loan of ₹2,00,000 from ICICI bank in order to meet all short term needs of business. He has also placed information about his store on bill boards, hoardings etc.

In the context of the above information about Harshit's business, answer following questions:

(a) What are auxiliaries of trade?

(b) Identify the auxiliaries of trade that are being used by Harshit in his business by quoting lines from above paragraph.

Explain briefly the different types of services.

What is environment? What is environmental pollution?

From the view point of liability and duration, how can you classify partnership?