CASE STUDIES OF BST CLASS 11 CH - 1 NATURE AND PURPOSE OF BUSINESS

 

CLASS -11 BUSINESS STUDIES 

CHAPTER - 1 NATURE AND PURPOSE OF BUSINESS

CASE STUDY AND VALUE-BASED QUESTIONS WITH ANSWERS 

 Q1. Mr. Bhuvan is a Chartered Accountant in a Multinational Company. He gets rs 85,000 per month as his salary. On weekends, Mr. Bhuvan goes to nearby village and teaches some slum children, he does not charge anything from them, he does it out of sympathy and children. This gives him mental and psychological satisfaction. concern for poor.

(a) Working as CA in a MNC refers to which type of human activity.
(b) Teaching students in slum is which type of human activity.
(c) Identify the values followed by Bhuvan.

 

Ans. (a) Economic

(b) Non-Economic

(c) (i) Value of love and care.

 (ii) Value of helping poor.

 

Q. 2. Rajiv wants to start a whole sale business of readymade garments, but he is hesitating as it involves various problems such as customers for moving goods from place of production to market, informing customers about new designs and varieties added every season, threat of risk loss by fire or accident, storing the excess stock of goods, etc. He approaches his friend Sandeep who explained him about some branches of commerce, which can help Rajiv to overcome his hesitation.

(a) State the type of business Rajiv is planning to start.

(b) State which dimension of business can help Rajiv to overcome these hindrances. (c) Specify different types of Auxiliaries to trade which can help Rajiv to overcome his problems. Quote the line for each type from above Para.

 Ans. (a) Trade - Whole sale Trade.

 (b) Commerce

 (c) (i) "Searching for Customer" – Trade (ii) "Moving goods"

(iii) "Informing customers"

 (iv) "Threat of Risk" Transportation -                    Advertisement Insurance -

 

 Q. 3. Indu bought a readymade dress for ₹ 5000. Her friend liked the design of dress very much, so Indu sold the same dress to her friend for 5500 and made a profit of 500. After completing her studies Indu opened a shop of selling readymade dresses for girls.

(a) Can transaction between Indu and her friend be termed as business?

(b)State the features related to 'a'.

 (c) Can the sale of dresses on her shop be called as business?

 Ans.(a) No.

(b) "Regular Basis".

 (c) Yes, as it is done on Regular Basis.

 

Q. 4. Name the following:

(a) The economic activity showing a risk element and carried on profit.

(b) The trade in which two countries are involved.

(c) The trade in which goods are imported from one country for the purpose of exporting to other country.

(d) The industry which involves breeding and reproduction of plants and animals.

(e) The branch of commerce which remove hindrance of place.

Ans. (a) Business

 (b) External Trade

(c) Entrepot

(d) Genetic Industry

(e) Transportation.

 

Q. 5. An organisation planned to use CFL and LED which consume less electricity to reduce operational cost. They also give preference to labour intensive technique of production. What values company is implementing?

Ans.1. Value of saving electricity.

2. Value of creating employment opportunities.

3. Value of reduction in cost.

 

Q. 6. An organisation arranges recreational activities for its employees to refresh them and also send them for training to update their knowledge. What values are followed by the company? .

Ans. 1. Value of meeting personal objectives.

2. Value of motivating employees.

3. Values of giving job satisfaction to employees.

 

Q. 7. A Chartered Accountant advised his elient how to convert black money into white money and he also guided him how to save income tax by hiding his income. Is his act justified.

Ans. No conduct of CA and businessmen are not justified:

(a) CA is violating his code of conduct by acting unethically.

(b) Cheating government by paying less income.

(c) Acting dishonestly.

(d) The act is not even unethical but illegal also.

 

Q. 8. A Tool and Equipment Manufacturing Company gave bribe to purchase manager of a factory to buy tools of low quality and which are not having safety norms. The purchase manager accepted the offer and gave a big order. What values are violated?

Ans. 1. Value of playing with the health of workers.

 2. Not fulfilling safety norms competition. 3. Offering bribe is an unlawful act.

 

 Q.9. A unit set up by Tata in rural area and the company plan to develop roads, parks of that area they also started a school for local children of that area. What values are followed?

Ans. 1. Fulfilling social objectives.

2. Increasing literacy rate.

3. Improving standard of living.