No.

of Printed Pages : 4 ECO-1

BACHELOR'S DEGREE PROGRAMME

O Term-End Examination
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June, 2010
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O ELECTIVE COURSE : COMMERCE
ECO- 1 : BUSINESS ORGANISATION

Time : 2 hours Maximum Marks : 50

(Weightage 70 %)

Note : Attempt both Part - A and Part - B.

PART - A

1. Distinguish between any two of the following : 5+5

Business and Trade
Rights issue and Public issue of shares
Advertisement and Publicity
Pledge and Hypothecation

2. Write short notes on any two of the following : 5+5

Underwriting
Partnership deed
Direct channels of distribution
Warehousing

ECO-1 1 P.T.O.
 PART - B

Attempt any three of the following questions :

"Company form of business organisations 10
emerged essentially because of the limitations and
failures of the partnership form of business
organisations." Discuss.

What do you understand by capital structure ? 2+8

If you promote a car manufacturing company,
what factors do you keep in mind while deciding
on the capital structure of your company ?

"Different channels of distribution are used for 10

different products." Explain with reasons.

"All business risks are not insurable." In the light 10

of this statement, explain insurable risks and
non-insurable risks.

Why is it considered necessary for the government 10

to directly participate in business and industry ?

(a) Why do the prices of securities traded on a 5+5

stock exchange fluctuate widely ?
(b) "Foreign trade is an engine of economic
growth in a country". Comment.

ECO-1 2


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ECO-1 3 P.T.O.
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ECO-1 4