Emerging Modes of Business — Business Studies STD 11 Commerce — Question

Harsh, Dinesh and Kunal were partners in a financing firm. Harsh and Kunal had gone for a meeting in London for analyzing business prospects in that country. In the meanwhile, Dinesh invested a huge amount in buying shares of a new company by borrowing money from Rajesh. This turned out to be a bad deal as the share prices soon fell down.
When Harsh and Kunal came back they said they were not liable to pay to Rajesh as they did not take the money.
On the basis of the given information, answer the following questions:
(a) Were Harsh and Kunal right in doing so?
(b) Under which aspect of partnership are they bound? Explain.

Abhishek Purohit gets his house insured against a fire for ₹ 25 lakh with insurer J and ₹ 15 lakh with insurer K. Due to outbreak of fire one night he suffered a loss of ₹ 8 lakhs.

(a) How much compensation can he claim from J and K? Why?
(b) State the relevant insurance principle in this regard.

With reference to the modern banking, state the meaning of debit and credit cards.

Discuss some of the economic functions of transport services.

Explain the 'Mutual agency' feature of partnership.

Mayank has a surplus money of Rs. 25,00,000, which he wants to invest either in equity shares or in preference shares. Two real estate companies (Magic Estate and Skylark Enterprises), with almost the same creditworthiness, are launching their public issue. Magic Estate is coming up with a public issue of preference shares, while Skylark Enterprises is coming up with equity shares. Mayank is confused about the two issues. He consulted his friend Gaurav, who is a portfolio manager and Gaurav convinced him to invest the money in Magic Estate due to 'Preferential Rights of preference shareholders over equity shareholders.
State the 'Preferential Rights' stated by Gaurav, which convinced Mayank to invest in Magic Estate.

List some professions, professionals and their professional bodies.

Which hindrance of commerce is highlighted in the following activities?
i. It removes the geographical separation between producers and consumers.
ii. Warehousing facilitates holding of goods till they are required.
iii. Advertising informs the consumers about the goods and services available in the market.
iv. Trade provides an organised market where buyers and sellers can contact each other.
v. Banking and Financing Institutions provide necessary funds to carry on business activities.
vi. There exist a time gap between production and consumption of goods.
vii. Insurance protects the goods in case of damage due to theft, fire, accidents.

Who are itinerants? Name different types of itinerants.

"Registration of a partnership firm is not to be compulsory but beneficial". Do you agree? Give reasons in support of your answer.