Sources of Business Finance — Business Studies STD 11 Commerce — Question

Manish Roy purchased a new car and got it insured with Oriental Insurance Company for ₹3,00,000 and National Insurance Company for ₹4,00,000. In an accident, the car was damaged. He claimed for a compensation of ₹70,000 from both the companies.

(a) Is he entitled to get a compensation from both the companies?
(b) Explain the relevant principle of insurance applicable in this regard.
(c) How much compensation will be received from both companies?

Many industrial organisations have been responsible for causing air, water, land and noise pollution. People are now raising their voice loudly against pollution generating activities. Business enterprises cannot remain unaffected by environmental destruction.
Explain the necessity of pollution control by Business Enterprises.

MNO Ltd., a renowned computer follows the vision of “reaching new heights with its people on its side”. It not only provides quality products but also provides various facilities to its employees for 5 years of service. It also provides computer skills to youth in remote areas for free.
(a) What according to you are the business ethics of the company ?
(b) It is fulfilling its social responsibilities towards which interest groups ?

State the features of cottage industries.

Which products are suitable for the purpose of retailing through mail order business?

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.

Differentiate between goods and services.

State the various types of organizations in the private sector.

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

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?