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

Nature Products Ltd. is a well known company specialising in organic farming. It entered into a contract with 'Rastogi Ltd.', a company dealing in organic pulses and spices to supply goods worth ₹20 Lakh to them before 'Rastogi Ltd.' could obtain Certificate of Commencement.
On the basis of the given information, answer the following questions:
(a) What is the type of contract that a company may enter into before it gets Certificate of Commencement of Business known as?
(b) Can Nature products Ltd. recover the price for its supplies? Give reasons.

"Business is an institution organised and operated to provide goods and valuable services under the incentive of private gain.” Discuss.

Differentiate between economic and non-economic activities.

YES Bank has developed unique product proposition extending the entire benefit of the advancement in the payments landscape to the customer's desktop by pioneering the introduction of the payments on the web. The platform provides online confirmation along with instant settlement for payments making cash flow forecasting easier and precise to the last minute.

State the type of banking services highlighted in aforesaid case by quoting the lines from the same.

Mohan and Radha want to start a shop to sell Rajasthani Sweets. They did not know how to develop the agreement for this purpose. So, they approached a Chartered Accountant who advised them to prepare a document which may stipulate the terms and conditions of the agreement.
On the basis of given information, answer the following questions:
(a) Name the document about which the chartered accountant advised Mohan and Radha.
(b) State any four important items they should include in the agreement besides the name, nature and place of business.

Mr. Singh is in ‘lighting’ business for the post 15 years. To help his friend, Mr Yadav, a beginner he projected himself as a partner before Mohd. Abdul, a whole sale dealer of fancy lights. Mohd. Abdul gave Mr. Yadav the stock without asking for payment and gave him credit limit of one month. Will Mr. Singh be liable to Md. Abdul if Mr. Yadav does not pay him on time ? Classify Mr. Singh’s role here along with an explanation 

Sanjay Sethupathi took a marine insurance policy to cover the goods exported by him. Under this policy, goods were insured against damage caused due to sea water. During the voyage, a hole was developed at the bottom of the deck of the ship and sea water seeped in through the hole and damaged Sanjay Sethupathi's goods.

Can Sanjay Sethupathi claim compensation for his loss? State the relevant insurance principle in this regard.

Mr Ram Manohar, Karta of a family business, dies in air crash. His son received the amount of compensation from the insurance company. In this case, can this income be treated as HUF income?

Rahul gets his godown insured against fire for 1,00,000 but does not take enough precautions to minimize the chances of fire like installing fire extinguisher in the godown. During the policy period, a fire take place in his godown and he does not take any steps like throwing water and calling the employees from the fire fighting department to control the fire.

Can he still claim the compensation from the insurance company? State the relevant principle in this context.

Explain the factors which affect the choice of form of business organisation.