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This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1001. |
Discuss 3 ways in which e-banking can be conducted.... |
| Answer» VARIOUS FORMS OF E-BANKING:INTERNET BANKING:Internet Banking helps you manage many banking transactions online via your PC.AUTOMATED TELLER MACHINES (ATM):An automated teller machine or automatic teller machine (ATM) is an electronic computerized telecommunications device that allows a financial institution’s customers to directly use a secure method of communication to access their bank accounts, order or make cash withdrawals (or cash advances using a credit card) and check their account balances without the need for a human bank teller.TELE BANKING:By dialing the given Telebanking number through a landline or a mobile from anywhere, the customer can access his account and by following the user-friendly menu, entire banking can be done through Interactive Voice Response (IVR) system.SMART CARD:A smart card usually contains an embedded 8-bit microprocessor (a kind of computer chip). The microprocessor is under a contact pad on one side of the card. Think of the microprocessor as replacing the usual magnetic stripe present on a credit card or debit card.The microprocessor on the smart card is there for security. The host computer and card reader actually “talk” to the microprocessor. The microprocessor enforces access to the data on the card.The chips in these cards are capable of many kinds of transactions.DEBIT CARD:Debit cards are also known as check cards. Debit cards look like credit cards or ATM (automated teller machine) cards, but operate like cash or a personal check. Debit cards are different from credit cards. While a credit card is a way to “pay later,” a debit card is a way to “pay now.” When you use a debit card, your money is quickly deducted from your checking or savings account.E-CHEQUE:An e-Cheque is the electronic version or representation of paper cheque. | |
| 1002. |
DTH services are provided by:-.........? |
| Answer» DTH stands for Direct-to-home\xa0television. It is defined as the reception of satellite programmes with a personal dish in an individual\xa0home. Only cable operators can receive the satellite programmes which are transferred by them to individual homes. Hence, DTH services are provided by\xa0cellular\xa0companies.\xa0Direct-to-Home (DTH) television is a method of receiving satellite television by means of signals transmitted from direct-broadcast satellites. The Government of India permitted the reception and distribution of satellite television signals in November 2000. | |
| 1003. |
Advantages of Recurring Deposit Account.... |
| Answer» The main features of\xa0recurring deposit account\xa0are as follows:-\tThe main objective of recurring deposit account is to develop regular savings habit among the public.\tIn India, minimum amount that can be deposited is Rs.10 at regular intervals.\tThe period of deposit is minimum six months and maximum ten years.\tThe rate of interest is higher.\tNo withdrawals are allowed. However, the bank may allow to close the account before the maturity period.\tThe bank provides the loan facility. The loan can be given upto 75% of the amount standing to the credit of the account holder. | |
| 1004. |
Features of Departmental Undertaking, Statutory Corporation & Government company... |
| Answer» Statutory Corporation:\tThis type of organization is formed by passing a special act of Parliament. It is an initiative of private enterprises.\tIt is completely owned by the state.\tDepartmental Undertaking:\tIt is a department which works under a minister and ensures high degree of public accountability.\tIt is completely owned by government.Government Company:\tThis form of organization gets established under the Indian Companies Act of 1956.\tIn this at least 51% of the share is owned by the central government or partly by both; central and states. | |
| 1005. |
Explain different types of partners.... |
| Answer» 1.Active partner: A partner who contributes capital and also actively participates in the management and affairs of the business is called an active partner. He shares the profits and losses of the business and his liability is unlimited.2.Sleeping partner: A partner who contributes capital but does not participate in the management and affairs of the business is called a sleeping partner. He shares the profits and losses of the business and has unlimited liability.3.Secret partner : A partner whose association with the firm is not known to the general public is called a secret partner. He also contributes capital, shares profits and losses, participates in the management of the business and has unlimited liability.4.Nominal partner : A partner who allows thepartnership firm to use his/her name but does not contribute any capital or take part in the management and affairs of the business. He does not share the profits and losses of the firm but he is liable to the creditors for the repayment of the firm’s debts.5.Partner by estoppel: Partner by estoppel is a partner who, through his/her conduct or behaviour, gives an impression that he/she is a partner of a particular firm. Although such a person neither contributes capital nor participates in the management of the business, in the eyes of the third party he is known as a partner of that firm. Hence, he too is liable for the debts of the firms.6.Partner by holding out : A person, who is not actually a partner of a firm but knowingly allows himself/herself to be represented as a partner of the firm is called a partner by holding out. Such a person can be held liable for the repayment of debt extended to the firm due to such representation. In order to avoid this liability, such a person should immediately clarify his position to the third party, stating the fact that he is not a partner. Failure in clarifying same would make him liable to the third party for repayment of any debts taken by the partnership firm. | |
| 1006. |
Difference b/w Memorandum Of Association & Articles Of Association ..... |
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| Answer» | BASIS FOR COMPARISON | MEMORANDUM OF ASSOCIATION | ARTICLES OF ASSOCIATION | \t\t\tMeaningMemorandum of Association is a document that contains all the fundamental information which are required for the incorporation of the company.Articles of Association is a document containing all the rules and regulations that governs the company.Defined inSection 2 (56)Section 2 (5)Type of Information containedPowers and objects of the company.Rules of the company.StatusIt is subordinate to the Companies Act.It is subordinate to the memorandum.Retrospective EffectThe memorandum of association of the company cannot be amended retrospectively.The articles of association can be amended retrospectively.Major contentsA memorandum must contain six clauses.The articles can be drafted as per the choice of the company.ObligatoryYes, for all companies.A public company limited by shares can adopt Table A in place of articles.Compulsory filing at the time of RegistrationRequiredNot required at all.AlterationAlteration can be done, after passing Special Resolution (SR) in Annual General Meeting (AGM) and previous approval of Central Government (CG) or Company Law Board (CLB) is required.Alteration can be done in the Articles by passing Special Resolution (SR) at Annual General Meeting (AGM)RelationDefines the relation between company and outsider.Regulates the relationship between company and its members and also between the members inter se.Acts done beyond the scopeAbsolutely voidCan be ratified by shareholders.\t|
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| 1007. |
Explain objectives of business. |
| Answer» The five multiple objectives of business are as follows:\tMarket standing : Market standing refers to the position of an enterprise in relation to its competitors. A business enterprise must aim at stronger market standing in terms of offering competitive products to its customers and serving them to their satisfaction.\tInnovation : Innovation is the introduction of new ideas or methods in the way something is done or made. There are two kinds of innovation in every business, i.e.,\t(i) innovation in product or service.\t(ii) innovation in the various skills and activities needed to supply them.\tProductivity : Productivity is calculated by comparing the value of outputs with the value of inputs. It is used as a measure of efficiency.\tPhysical and financial resources : Any business requires physical resources like plants, machines, offices, etc., and financial resources i.e. funds to be able to produce and supply goods and services to its\tcustomers.\tEarning profits : One of the main objectives of business is to earn profits on the capital employed.\tProfitability refers to profit in relation to capital investment. Every business must earn a reasonable profit which is crucial for its survival and growth | |
| 1008. |
Giving priority to service insted of economic self interest is the characteristic of which activity |
| Answer» Giving\xa0priority to service instead of economic self-interest’ is the characteristic of political economyPolitical economy\xa0is a term used for studying\xa0production\xa0and\xa0trade, and their relations with law,\xa0custom, and government, as well as with the\xa0distribution\xa0of\xa0national income\xa0and\xa0wealth.\xa0Political economy\xa0originated in\xa0moral philosophy. It was developed in the 18th century as the study of the economies of states, or\xa0polities, hence the term\xa0political\xa0economy. | |
| 1009. |
Explain briefly the meaning of communication services. |
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Answer» \xa0Communication : Post and Telecom Services : Communication is an important service that helps in establishing links between business men, organisations, suppliers, customers etc. Communication service provides the means of transmission of ideas and information between individuals and institutions.\xa0We are living in the era of advanced communication which has reduced the whole world to a "global village". Through the facilities of quick exchange of information with the help of electronic media. Various communication services such as telephone, telegraph, radio, television, satellite communication, fax, e-mail etc, have transformed the modern society and have made our life quite comfortable.For any organisation, both internal and external communication are essential. Internal communication includes messenger service, intercom, closed circuit television, internal telephone network etc. External communication systems include postal service, telegraphic service, telephone network, fax, e-mail, video conferencing etc.We may classify the modes of communication as follows :(i)\xa0Postal communication(ii)\xa0Telecom or Telecommunication(iii)\xa0Electronic communication : Fax, Internet, E-mail, Voice mail. IntramuralMeaning of Intramural:-Intramural is derived from the Latin word’ Intra” and “muralist’.”Intra” means “within” and “Muralist” means ‘Waif .So we can say that the activities, which are performed within the walls or within the campus of an institution ,are called ‘Intramural”.The intramural sports means competitions within the walls or within the school, i.e. being or occurring within the limits usually of a community, organization, or institution. This programme offers the school community the opportunity to participate in organized sports competition. The rules of the games/ sports are modified accordingly, if needed. |
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| 1010. |
Ch. 3 |
| Answer» What ch.3 ?? | |
| 1011. |
Explain notes of ch1 |
| Answer» | |
| 1012. |
Chhavi Cook |
| Answer» | |
| 1013. |
Explain in brief the process of entrepreneurship Development. |
| Answer» Entrepreneurship development is the means of enhancing the knowledge and skill of entrepreneurs through several classroom coaching and programs, and training. The main point of the development process is to strengthen and increase the number of entrepreneurs.\xa0This entrepreneur development process helps new firms or ventures get better in achieving their goals, improve business and the nation’s economy. Another essential factor of this process is to improve the capacity to manage, develop, and build a business enterprise keeping in mind the risks related to it. | |
| 1014. |
What is the startup india scheme? Explain |
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Answer» Startup India Scheme is an initiative\xa0by the Government of India for generation of employment and wealth creation. The goal of Startup India is the development and innovation of products and services and increasing the employment rate in India. Benefits of\xa0Startup India Scheme\xa0is Simplification of Work, Finance support, Government tenders, Networking opportunities. Startup India was launched by Prime Minister Shri. Narendra Modi on 16th January 2016. Startup India Scheme is an initiative\xa0by the Government of India for generation of employment and wealth creation. The goal of Startup India is the development and innovation of products and services and increasing the employment rate in India. Benefits of\xa0Startup India Scheme\xa0is Simplification of Work, Finance support, Government tenders, Networking opportunities. Startup India was launched by Prime Minister Shri. Narendra Modi on 16th January 2016. Startup India Scheme is an initiative\xa0by the Government of India for generation of employment and wealth creation. The goal of Startup India is the development and innovation of products and services and increasing the employment rate in India. Benefits of\xa0Startup India Scheme\xa0is Simplification of Work, Finance support, Government tenders, Networking opportunities. Startup India was launched by Prime Minister Shri. Narendra Modi on 16th January 2016.\xa0 |
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| 1015. |
Name the five forms of business. |
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Answer» There are 5 forms of Business OrganisationThe following are the Forms of Business Organisation1. Sole Proprietorship.2. Joint Hindu Family Business.3. Partnership.4. Co-operative Societies.5. Joint Stock Compan. A n s w e rThere are 5 forms of Business OrganisationThe following are the Forms of Business Organisation1. Sole Proprietorship.2. Joint Hindu Family Business.3. Partnership.4. Co-operative Societies.5. Joint Stock Compan. |
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| 1016. |
Which institute is called debtors as well as creditors? |
| Answer» Banks are called debtors as well as creditors because\xa0banks accept various types of deposits from the public such as savings account deposit, current account deposit and fixed account deposit, and pay interest on them. They are indebted to repay the depositor the amount deposited by him or her. Besides this, they\xa0grant loans and advances on the basis of the total deposits available with them. These advances can be in the form of overdrafts, discounted trade bills, cash or consumer credits, etc.\xa0 | |
| 1017. |
What are primaru industries |
| Answer» Industries can be classified under the following types:-1. Primary IndustryPrimary industry includes all those activities, which are connected with the extraction and production from natural resources as well as reproduction and development of living organisms, plants. These industries may be further sub-divided as follows: (i)Extractive Industries\xa0:\xa0These industries extract or draw out products from natural sources. Extractive industries supply some basic raw-material that are mostly the products of the soil. Products of these industries are usually transformed into many other useful goods by manufacturing industries. e.g Mining etc. (ii)\xa0Genetic Industries\xa0:\xa0The industries remain engaged in breeding plants and animals for their use in further reproduction. For the breeding of plants, the seeds and nursery companies are typical example of genetic industries. | |
| 1018. |
What is enifty |
| Answer» The NIFTY 50 is a benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange. It is one of the two main stock indices used in India, the other being the BSE SENSEX. | |
| 1019. |
What are the sources of long term finance as a business enterprise |
| Answer» | |
| 1020. |
Discuss the importance of equity shares and preference shares as a source of long-term finance |
| Answer» \tEquity Shares:\xa0Equity shares are the most important source of raising long term capital by a company. They represent the ownership of a company and therefore, the capital raised by issue of these shares is called owner’s funds. These shareholders do not get a fixed dividend. They get according to the earnings of the company. They receive what is left after all other claims on the company’s income and assets have been settled. They enjoy the reward and also bear the risk of ownership. They have voting rights. Using their voting rights, they get participation in management of the company.\tPreference Shares:\xa0Preference shareholders are called so because they enjoy some preferential rights over equity shares. They get dividend at a fixed rate and dividend is given on these shares before any dividend on equity shares. When company winds up, preference shares are paid before equity shares. Preference shares also have a right to participate in excess profits left after payment being made to equity shares. They also have a right to participate in the premium at the time of redemption. In lieu of these preferential rights, their voting rights are taken i.e. they are not eligible for voting. Preference shares have some characteristics of equity shares as well as debentures. They are safer investment with stable return from investor’s point of view and free from control from owner’s point of view. | |
| 1021. |
What ise-banking? |
| Answer» E-banking means any user with a PC and a browser can get connected to the banks’ website to perform any of the virtual banking functions and avail of any of the banks services. There is no human operator to respond to the needs of the customer.\xa0 | |
| 1022. |
Describe advantages and limitations of loans from financial institutions |
| Answer» FINANCIAL INSTITUTION:The state and central government have established many financial institutions to provide finance to companies. They are called development Bank. These are IFCI, ICICI, IDBI, LIC and UTI. etc.MERITS:1. Long term Finance:\xa0Financial Institution provide long term finance which is not provided by Commercial Bank.2. Managerial Advice:\xa0They provide financial, managerial and technical advice to business firm.3. Easy installments:\xa0Loan can be made in easy installments. It does not prove to be much of a burden on business.4. Easy availibility:\xa0The funds are made available even during periods of depression.LIMITATIONS/ DEMERITS:1. More time Consuming: The procedure for granting loan is time consuming due to rigid criteria and many formalities.2. Restrictions: Financial Institution place restrictions on the company’s board of Directors. | |
| 1023. |
Explain the pros and cons of public deposits as a source of business finance. |
| Answer» PUBLIC DEPOSITS:\xa0The deposits that are raised by company direct from the public are known as public deposits. The rate of interest offered on public deposits are higher than the rate of interest on bank deposits. This is regulated by the R.B.I. and cannot exceed 25% of share capital and reserves.MERITS:1. No charge on assets:\xa0The company does not have to mortgage its assets.2. Tax Saving:\xa0Interest paid on public deposits is tax deductable, hence there is tax saving.3. Simple procedure:\xa0The procedure for obtaining public deposits is simpler than share and Debenture.4. Control:\xa0They do not have voting right therefore the control of the company is not diluted.LIMITATIONS:1. For Short Term Finance:\xa0The maturity period is short. The company cannot depend on them for long term.2. Limited fund:\xa0The quantum of public deposit is limited because of legal restrictions 25% of share capital and free reserves.3. Not Suitable for New Company:\xa0New company generally find difficulty to raise funds through public deposits. | |
| 1024. |
What are retained profits? Discuss their advantages and disadvantages as a source of finance. |
| Answer» Retained Profits: For any company, the amount of earnings retained within the business has a direct impact on the amount of dividends. Profit re-invested as retained earnings is profit that could have been paid as a dividend. The management of many companies believes that retained earnings are funds which do not cost anything, although this is not true. However, it is true that the use of retained earnings as a source of funds does not lead to a payment of cash. The dividend policy of the company is in practice determined by the directors. From their standpoint, retained earnings are an attractive source of finance because investment projects can be undertaken without involving either the shareholders or any outsiders. The use of retained earnings as opposed to new shares or debentures avoids issue costs. The use of retained earnings avoids the possibility of a change in control resulting from an issue of new shares. Another factor that may be of importance is the financial and taxation position of the company’s shareholders. For example, because of taxation considerations, they would rather make a capital profit (which will only be taxed when shares are sold) than receive current income, and then finance through retained earnings would be preferred to other methods.Advantages of Retained Earnings\tThe management of many companies believe that retained earnings are funds which do not cost anything, although this is not true. However, it is true that the use of retained earnings as a source of funds does not lead to a payment of cash.\tThe dividend policy of the company is in practice determined by the directors. From their standpoint, retained earnings are an attractive source of finance because investment projects can be undertaken without involving either the shareholders or any outsiders.\tThe use of retained earnings as opposed to new shares or debentures avoids issue\xa0costs. The use of retained earnings avoids the possibility of a change in control resulting from an issue of new shares.\xa0\tAnother factor that may be of importance is the financial and taxation position of the company’s shareholders. If, for example, because of taxation considerations, they would rather make a capital profit (which will only be taxed when shares are sold) than receive current income, then finance through retained earnings would be preferred to other methods.Disadvantages of Retained Earnings\xa0\tA company must restrict its self-financing through retained profits because shareholders should be paid a reasonable dividend, in line with realistic expectations, even if the directors would rather keep the funds for re-investing.\tAt the same time, a company that is looking for extra funds will not be expected by investors (such as banks) to pay generous dividends, nor over-generous salaries to owner-directors.\tScope of retained earnings is limited by amount of profits. A loss incurring firm has no source called retained earnings. | |
| 1025. |
Make a comparative evaluation of shares and debentures as source of business finance? |
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| Answer» | BASIS FOR COMPARISON | SHARES | DEBENTURES | \t\t\tMeaningThe shares are the owned funds of the company.The debentures are the borrowed funds of the company.What is it?Shares represent the capital of the company.Debentures represent the debt of the company.HolderThe holder of shares is known as shareholder.The holder of debentures is known as debenture holder.Status of HoldersOwnersCreditorsForm of ReturnShareholders get the dividend.Debenture holders get the interest.Payment of returnDividend can be paid to shareholders only out of profits.Interest can be paid to debenture holders even if there is no profit.Allowable deductionDividend is an appropriation of profit and so it is not allowed as deduction.Interest is a business expense and so it is allowed as deduction from profit.Security for paymentNoYesVoting RightsThe holders of shares have voting rights.The holders of debentures do not have any voting rights.ConversionShares can never be converted into debentures.Debentures can be converted into shares.Repayment in the event of winding upShares are repaid after the payment of all the liabilities.Debentures get priority over shares, and so they are repaid before shares.\t|
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| 1026. |
Discuss the importance of equity shares and preference shares as sources of long-term finance? |
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| 1027. |
What are the sources of long term finance for a business enterprise? Explain |
| Answer» Long-term financing sources can be in the form of any of them: Share Capital or Equity Shares. Preference Capital or Preference Shares.\xa0Retained Earnings\xa0or Internal Accruals. | |
| 1028. |
Whar are the types of business finance and what are their uses |
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Answer» NEED OF BUSINESS FINANCE:Uses1.\xa0Fixed Capital Requirement:\xa0In order to start a business, funds are needed to purchase fixed assets like land and building, plant and machinery.The funds required in fixed assest remain invested in the business for a long period of time.2. Working Capital Requirement:\xa0A business needs funds for its day to day operation. This is known as working Capital requirements. Working capital is required for purchase of raw materials, to pay salaries, wages, rent and taxes.3. Diversification:\xa0A company needs more funds to diversify its operation to become a multi-product company e.g. ITC.4. Technology upgradation: Finance is needed to adopt modern technology for example uses of computers in business.5. Growth and expansion:\xa0Higher growth of a business enterprise requires higher investment in fixed assets. So finance is needed for growth and expansion. \xa0Classification of Sources of Funds(i)\xa0Period Basis\xa0On the basis of time period, a business finance can be classified in three categories.(a)\xa0Long Term Finance\xa0Funds which are required to be invested In a business for a long period of time, that is more than five years are known as long term finance.(b)\xa0Medium Term Finance\xa0The finance required by business enterprises for more than one year but less than five years is known as medium term finance.(c)\xa0Short Term Finance\xa0The finance required for a short period upto one year is known as short term finance.(ii)\xa0Ownership Basis\xa0On the basis of ownership, the sources can be classified into\xa0‘owner’s fund’\xa0and\xa0‘borrowed fund’,(a)\xa0Owner Fund\xa0It refers to the funds contributed by owners as well as the accumulated profit of the company this fund remains with the company and it has no liability to return this fund. e.g., equity shares, retained earnings.(b)\xa0Borrowed Fund\xa0It refers to the borrowing of the firm. It includes all funds available by way of loans or credit(iii)\xa0Source of Generation Basis\xa0Another basis of categorising the sources of funds can be whether the funds are generated from with in the organisation internal or from external sources. |
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| 1029. |
Why commerce is known as backbone of industry?(6 marks) |
| Answer» Commerce is considered as the backbone of industry because it performs the following functions :\tHelps in eliminating the hindrances of persons.\tHelps in eliminating the hindrances of place.\tHelps in eliminating the hindrances of time.\tHelps in eliminating the hindrances of finance.\tHelps in eliminating the hindrances of risk.\tHelps in eliminating the hindrances of information. | |
| 1030. |
Who defines the powers and functions, roles and regulations for a statutory corporation..?? |
| Answer» Thanks... | |
| 1031. |
Explain briefly factors to be considered for standing business? |
| Answer» It is evident that each form has certain advantages as well as disadvantages. Therefore, it is important to choose an appropriate form of organisation.Factors that determine the choice of form oforganisation:\tCost and ease in setting up the organisation: From the’point of view of initial cost, sole proprietorship is the preferred form as it involves least expenditure.\tA company form of organisation, on the other hand, is more complex and involves greater costs.\tLiability : In case of sole proprietorship and\tpartnership firms, the liability of the owners/ partners is unlimited. In Joint Hindu Family Business, only the Karta has unlimited liability. In cooperative societies and companies, however, liability is limited.\tContinuity: In case the business needs a permanent\tstructure, company form is more suitable. For short term ventures, proprietorship or partnership may be preferred.\tManagement ability : A sole proprietor\tmay find it difficult to have expertise in all functional areas of management. In other forms of organisations like partnership and company, there is no such problem.\tCapital consideration : Companies are in a better\tposition to collect large amount of capital by issuing shares to a large number of investors. Partnership firms also have the advantage of combined\tresources of all partners. But the resources of a sole proprietor are limited.\tDegree of control: If direct control over operations\tand absolute decision making power is required, sole proprietorship may be preferred. | |
| 1032. |
What factors should be taken into consideration while selecting the form of business organization? |
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| 1033. |
Discuss the merits and demerits of a company? |
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| 1034. |
What is company? |
| Answer» A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared goals. | |
| 1035. |
Explain the merits and demerits of cooperative society? |
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| 1036. |
Distinguished between equity shares and preference shares? |
| Answer» \tEquity SharesPreference SharesFull right to participate in managementHas no right to participate in managementDividend is paid at the endPreference is given in providing dividendRefund of capital is not possibleRefund of capital is possible in case of redeemable preference sharesOn winding up of the company, capital is refunded after the preference sharesPreference is given in refunding the capital\t | |
| 1037. |
Name any two special financial institutions and state their object ivs |
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| 1038. |
What do you understand by ownership capital and borrowed capital? Distinguished between them?? |
| Answer» \xa0Ownership Capital : Ownership capital consists of the amounts contributed by the owners as well as their profit re-invested in the business. In a partnership firm, the funds contributed by the partners as capital are called ownership capital. Ownership capital remains permanently invested in the business.Borrowed Capital: Borrowed fund include all funds available in the form of loans or credits. Loans are raised to business firms for specified periods at fixed rates of interest. | |
| 1039. |
what is intra B commerce |
| Answer» ThnQ | |
| 1040. |
Define construction industry |
| Answer» The industry which are construction work is undertaken like construction of road, dams, bridge, canals, etc. fall under this category. | |
| 1041. |
Define business risk. Also discuss the common cause of business risk. |
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Answer» Thanks Ankit and Gaurav Business risk is the possibilities a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, and the overall economic climate and government regulations. |
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| 1042. |
For dat to day supervision of chain stores , the head office normally apooints |
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| 1043. |
Define term Industry |
| Answer» economic activity concerned with the processing of raw materials and manufacture of goods in factories. | |
| 1044. |
"Specialized knowledge is essential for a profession. " Explain |
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| 1045. |
Write the meaning of employment |
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| 1046. |
Name five characteristics of bussiness |
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| 1047. |
Disadvantages of HUF |
| Answer» Disadvantages of the HUF\tNo outside members other than family members can be introduced to the HUF. This makes it very difficult to get additional capital from the\xa0market. With limited capital, the chances of expansion are very low. It limits the\xa0scope of the business.\tWhile the Karta has all the power he also has the burden of unlimited liability. This may make him overly cautious and timid in his business dealings. In turn, the business could suffer. Another factor is that he may even be held responsible for the actions of other members.\tAlso, the absolute dominance of the Karta overall business and financial decisions make cause conflict among the HUF. His decisions and business acumen may be questioned by other members, and cause issues within the HUF.\tAnother issue may be that the Karta may not be the most qualified person to lead the\xa0business. The position is given to the senior most family member, whether he is the most qualified or not is not taken into consideration. | |
| 1048. |
Explain the characteristics of business |
| Answer» \tFollowing are the characteristics or features of business(1) An Economic ActivityA business is an economic activity which includes the purchase & sale of goods or rendering of services to earn the money.It is not concerned with the achievement of social and emotional objectives.Example:Wholesaler sell goods to the retailers and retailers sell goods to the customers.(2)Manufacturing or Procurement of Services and GoodsBefore offering goods to the consumer for consumption it should be manufactured or procured by businesses.Business enterprise converts the raw material into finished goodsOrganizations also procure finished goods& services from the producers to meet the needs of the customers in the market.Goods can be a Consumer good like sugar, pen, ghee, etc. capital goods include machinery, furniture, services like transportation, banking, etc.Example:Individual retailer buys the toffees from wholesalers in a specific quantity and sells it to the ultimate consumer.(3)Exchange or Sale of Goods and \xa0Services for the Satisfaction of Human NeedsEvery business activity includes an exchange or transfer of services and goods to earn value.Producing goods for the goal of personal consumption is not included in business activity.So, there should be the process of sale or exchange of goods or services exits among the seller and the buyer.Example:A lady who bakes pastries and cakes at home and sells it to the pastry shop is a business activity.(4) Dealings With Goods and Services on a Daily BasisEvery business, rendering either services or goods should deal on a daily basis.A one-time sale is not considered a business activity.Example:If a person sells his old car through OLX even at a profit will not be considered as a business activity. But if he is engaged in regularly trading of cars at his showroom will be considered as business activity.(5) Profit EarningNo business can last for long, without making a profit.The purpose to conduct the business is to earn profits and minimize the cost.Example:A business house tries to reduce the cost of production and the cost of raw material to earn high profits.\t | |
| 1049. |
what do you mean by group life insurance policy? |
| Answer» Group life insurance\xa0is a type of\xa0life insurance\xa0in which a single contract covers an entire\xa0group\xa0of people. Typically, the\xa0policy\xa0owner is an employer or an entity such as a labor organization, and the\xa0policy\xa0covers the employees or members of the\xa0group. | |
| 1050. |
Xyz ltd has captured 52 of market share which type of objectives is highlighted in the case |
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