Business Arithmetic — Entrepreneurship STD 12 Commerce — Question

Blockbuster
This case study also applies to lack of agility but it's essentially location that has led to the downfall of Blockbuster. The company that delivers movies to 15 million doorsteps these days isn't Blockbuster the retail chain that once dominated the industry but an upstart company, Netflix company, that used little more than a website and knowledge of the postal service to topple a far more powerful and wealthy rival. The place for a video rental store these days is not on the high street but on the internet. Some fundamental rules changed and Blockbuster didn't get it fast enough whatever performance yardstick. Blockbuster was using to measure business success and guide strategic planing underestimated the impact of the change.

1. What were the reasons for Blockbuster's failure?
2. Which company caused the downfall of Blockbuster?

From the following information calculate return on investment and return on equity. You have newly started a restaurant business, you spend ₹ 10, 00,000 to open the restaurant. You have invested ₹ 4,00,000 of your own money and borrowed a loan for ₹ 6,00,000. Interest rate per annum is 10%. Monthly sales revenue is ₹ 6, 00,000 and cost of goods sold is ₹ 3,00,000. Fixed expenses per month ₹ 2,00,000 (salary ₹ 1,50,000, rent and utility ₹ 50,000), depreciation ₹ 10,000 and tax @ 20.

Before operationalisation of a Hindu Undivided Family business, its Karta has to fulfil certain legal formalities. Explain any three such legal formalities.

Designing a mobile phone that can also take photograph is an example of which concept? Identify it and explain it.

Briefly explain product placement' and 'promotion' as components of sales strategy.

What is the implication of the feature separate legal entity?

State any two features of 'Factoring' as a source of finance.

What is referred to as the excess of selling price over variable cost?

'Personal selling is a better method of sales promotion than advertisement. How? Explain with the help of any three points.

Explain briefly the concept of operating cycle.