Question : Classify the following source of funds under the heading owned source and borrowed source.
a) Equity shares
c) Retained Earnings
d) Loans from Bank
Answer : a) Equity shares – Owned fund
b) Debentures – Borrowed fund
c) Retained Earnings- owned fund
d) Loans from Bank - borrowed fund
Question : Explain any two Government assistance schemes which are meant for the development of Small and rural Industries in India.
Question : Write any two services provided by retailer to wholesaler.
Answer : Any two services
Question : Mohan a trader who purchases Basmati Rice in bulk Quantities and sells to his customers.
Rajan a trader who exports the Basmati rice to Dubai and earns foreign Currency. Identify and explain the types of trade performed by Mohan and Rajan.
Answer : Mohan – Wholesale trade
Rajan - Export trade
Question : The Board of Directors of Sajan Industries Ltd has decided to modernize company’s plant and machinery at an estimated cost of Rs 10 crores. As a finance manager of the company, advise the Directors about any three sources of finance available to the company for this purpose and explain it shortly.
Answer : Any three source of finance
Question : A Small entrepreneur has started a cottage industrial unit in a rural area by availing government loans at concessional rates. He has engaged 10 workers from the nearby locality and gives priority to local suppliers for getting inputs for his unit. He also sells finished goods at concessional rates in the neighborhood area. Identify the roles played the entrepreneur for rural development.
Answer : Role played by the entrepreneur are
1) Generation of employment for rural people
2) Use of Local resources for his industrial unit
3) Sale of his Products to rural people at cheaper rates.
Question : A Leading business house is operating a network of retail shops under the name ‘Your store’. These shops are located in different parts of NCR, Delhi. Since these shops have the same appearance and identical layout, one can easily identify these shops. The head Quarters are located at Delhi. All the supplies to the stores are routed through the headquarters. The stores follow uniform policies laid down by the headquarters. Most of the goods are sold at uniform price throughout the region.
1) Identify the type of retail store mentioned in the above case
2) Briefly explain any two features of such store.
Answer : 1) Chain store or multiple shops
1) They have identical display and layout
2) They follow uniform pricing as per the directions from central office.
3) Centralized purchasing
Question : Imagine life without your local market. What difficulties would the consumers face if there is no retail shop?
Explain any three benefits of International business to the Countries
Answer : Any three difficulties
Benefits of International business to the country
1) Earning foreign Exchange
2) More efficient use of resources
3) Improving growth prospectus and employment potentials
4) Increased standard of living ( Any three)
Question : In a business some funds are needed to establish the business and some funds are needed for the day to day working of the business. In the light of this statement briefly explain the fund requirements of a business with example.
Explain any five differences between Owned fund and borrowed fund.
Answer : There are two main fund requirements in a business
1) Fixed Capital – Explanation – Examples – 2.5 Marks
2) Working capital – Explanation – example - 2.5 marks
Any five Correct Differences