CBSE Class 11 Business Studies Worksheet Set 01 Solved

1. Which type of e-business transaction is highlighted in the following cases?

(a) Withdrawal of money from ATM (b) Sale of old books through olx.com

2. Name the return given to debenture holders for using their funds. 

3. ‘Business ethics highlighted social values and society’s concerns in relation to business and forced the corporates in that country to abstain from policies and practices which are against consumers and environmental protection’. Discuss any three elements of business ethics.

4. ‘Social responsibility is in the interest of business to fulfill its social responsibilities towards different interest groups’. Explain the social responsibilities towards various interest groups.

5. Write any five differences between traditional and e-business. 

6. Explain the meaning and two advantages of the following sources of capital:

(a) Preference shares (b) Retained earnings

VALUE POINTS 

1. (a) B2C Commerce (b) C2C Commerce 

2. Interest 

3. Elements of Business Ethics:

(1) Top management commitment: The higher level officials in business must give continuous leadership for developing and upholding the values of the organization.
(2) Publication of a ‘Code’: Business must define the principles of conduct for the whole organization in the form of written documents which is referred to as the ‘code’.
(3) Establishment of compliance mechanisms: Suitable mechanisms should be established to ensure that actual decisions and actions comply with firm’s ethical standards.
(4) Involving employees at all levels: The involvement of employees in ethics programmes is compulsory because they are the ones who implement such policies.
(5) Measuring results: The firm can measure the results by continuous monitoring system and proper auditing.
(Any three)

4. Responsibility towards various interest groups:

(1) Towards shareholders owners: A business has the responsibility to provide a fair return to the shareholders on their capital investment to ensure the safety of such investment.
(2) Towards workers: Business should try to create good working conditions, respect the democratic rights of workers, ensure fair wages etc.
(3) Towards the consumers: Supply of right quality and quantity of goods and services to consumers at reasonable prices constitutes the responsibility of an enterprise towards its consumers.
(4) Towards government and community: An enterprise must respect the laws of the country and pay taxes regularly and honestly.

5. Differences between Traditional and e-business

6. (a)Preference share capital: Meaning: Those shares which will get 2 preferences over equity shares are called preference shares.

Advantages:

1) Fixed rate of return on the investment.

2) Low risk because fixed rate of return

3) No voting rights and it does not affect the power of equity shareholders.

4) Since the rate of return is fixed, the company can declare high return for equity share holders.

5) They have preferential right on the repayment of capital on the winding up of the company.

6) No charge on the assets is created.

( Any two advantages)

(b)Retained earnings: Meaning: It is the portion of the net earnings which is retained in the business for use in the future.

Advantages:

1) It is a permanent source of funds.

2) It does not involve any cost for raising.

3) Increases the capacity of business to absorb unexpected losses.

4) Provides greater degree of operational freedom.

5) Increases the market price of the shares.

(Any two advantages)

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