Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

What is the alternate name of stock used by different people?

Saurabh Publications was a Private Limited company. The publishing business was growing by leaps and bounds. The demand was huge. It required huge investment to set-up its branches and printing base all over the country.
The board members were thinking to offer shares to public to meet investment requirements.

1. Identify the form which board members are thinking of?
2. What two benefits would be denied, if this form is accepted?
3. What two benefits would be there, if this form is accepted by the company?

Two years ago Gopal started manufacturing low fat, sugar-free ice-cream on a small scale basis in his home town, Vishakhapatnam. After some time his ice-cream became popular among health conscious young customers and old persons specially those having diabetes or some heart ailment. Because of the popularity of the ice-cream, the demand has increased manyfold. Gopal is unable to meet the same, because of his limited managerial ability and limited capital. Gopal also felt that whenever he fell sick his business was temporarily closed. To overcome this problem he decided to admit in the business his friend Mohan who has recently completed his MBA and is ready to invest money for the expansion of the business. Mohan advised Gopal to get their firm registered.

1. State three limitations indicated in the above para from which Gopal’s business suffered.
2. Why did Mohan advise Gopal to get the firm registered?

What are the common activities relating to vendor management?

An entrepreneur has decided to open a retail outlet to sell fast food items like pizza, noodles etc. in the rural areas. Do you think his decision is correct? Give anyone reason identifying the environmental factor helpful in taking this decision.

The joint stock company fulfill which needs of the business?

What are proprietary statements?

Following information is related to sales - mix of Pen. Sketch Pen and Geometry box.

Product	Pen	Sketch Pen	Geometry box
Sales Price Per Unit(in Rs.)	40	45	75
Variable Cost Per Unit (in Rs.)	22	30	40
Sales - Mix Percentage	20%	20%	60%

Total Fixed cost is - Rs.90,000.
Calculate the weighted-average-contribution per unit for the sales mix.

What are the factors involved in sensing opportunities?

Prerna is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop, selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, for better management of the business she is thinking to convert her sole proprietorship into some other form of business. She also has plans to open branches countrywide. However, she is afraid of the fact that in case the business incurs losses, her personal property may be called upon to pay the business debts. She is also feeling that she may not be able to effectively manage a large business because of her deteriorating health.

1. Identify and explain the features of sole proprietor business highlighted in the above case.
2. Also suggest to her the form of business organisation which will help her in continuing her business, stating reason in support of your answer.