Entrepreneurship Journey — Entrepreneurship STD 11 Commerce — Question

What do you mean by under-capitalisation?

What is the concept of market after the inclusion of E-Business?

Distinguish between:
Expenses and Expenditure.

Why is there a need for classification of costs?

State the categories into which a corporate strategies can be divided.

M/s 'Urbane Male' is a company engaged in manufacturing shirts for men. The variable cost of production per shirt is given below:

S. No.	Cloth (2m) @ 125 per metre	₹ 250
i.	Buttons, thread, bukram, etc.	₹ 25
ii.	Stiching and cutting charges per shirt	₹ 30
iii.	Total variable cost	₹ 305

In addition to the above variable costs, the company has to bear certain fixed costs also, such as rent of the factory premises, electricity bill, salary of the administrative staff, etc. To provide for these costs and also to earn profits, the company decides to sell each shirt for 400. The company decides to make shirts for children in the age-group of 4-10 years out of the scrap material and distribute it in an orphanage.

1. What will be the unit of sale for the above company?
2. Compute unit cost and gross profit per unit.
3. Identify the value communicated by the company.

Explain 'income tax' and 'corporation tax' as examples of direct taxes.

Describe the characteristics of business.

Jagdish is a farmer. His elder brother Manmohan is a doctor while his sister Kamlesh is a clerk in an office. Name the activities in which they are engaged and distinguish among them, on the basis of:

1. Reward.
2. Capital investment.
3. Risk.

What are insurable risks?