Delhi Public School Indirapuram

Business Studies Assignment (XI)

Evolution and Fundamentals of Business

1. Three friends Arun, Tarun and Varun are engaged in different types of activities to earn their
livelihood. Arun describes his occupation by saying that," transfer of interest is not possible in
case of my occupation and at the same time it does not require any capital investment." Tarun
remarks," in my occupation also transfer of interest is not possible, but one needs to possess
high degree of specialised knowledge in a particular field." Varun shares that, in his occupation
transfer of interest is possible with some formalities and also capital investment is essential. In
context of the above case:

(a) Identify the different types of economic activities being described in the above paragraph.
(b) Give any three points difference between them which have not been mentioned in the given
paragraph.

2. Sarika is running an organic store under the brand name, 'Earth' in a popular market in
Dehradun. She acknowledges that risks in her business cannot be predicted with utmost
accuracy as business environment is dynamic in nature. Therefore, it is not possible to predict
future events with accuracy like, change in consumer preferences, increase in competition,
natural calamities etc. Also, she feels that the risks in business can be minimised, but cannot be
eliminated all together. As her business is operated at a small scale she feels her quantum of risk
is relatively low. At the same time she truely believes in the saying that no risk, no gain' is
applicable to all the business organisations. Identify and explain the various characteristics of
business risk being described in the above paragraph. Also quote the lines.

3. Rohit and Gurvinder are partners selling electronic products across India. They import the
components from their friend Atul who does his business in China and assemble them in their
factory established in a rural area Jharkhand most of the workers in the factory are children and
women. They are paid very less salaries thus owner save on labour cost. They store their stocks
in a warehouse but don’t take proper safety measures against fire, burglary. There was a short
circuit in the factory and as a result most of the stock was damaged. On the basis of the given
information about Rohit and Gurvinder, answer the following

Questions:

(a) Specify the type of business activity performed by Rohit and Gurvinder.
(b) Specify the type of business activity performed by Atul.
(c) Specify the auxiliary to trade used by Rohit and Gurvinder.

4. Anuradha runs of fast food outlet in one of the shopping malls in Faridabad. Over the years,
her business has earned good reputation and high profits. However, over the past one month
she has released that her clientele is gradually declining. On introspection she identified two
main reasons for the same. First, a new fast food joint has opened up in the same mall and it is
drawing huge crowd. Secondly, one of her chief chef has not been keeping good health and is
not able to work towards the business in the same dedicated manner as earlier. In contest of the
given case: (a) Identify and explain the causes of business risk mention in the given paragraph.
(b) Also, quote the relevant lines.

5. Farhan, a young man, wants to provide employment to the local people of his village. He
decided to do the wholesale business of mobile phones made by the latest technique. But so
many questions began to crop up in his mind: how will the goods be brought from distant
places, how will the finance be arranged, and how will the information on his modern business
be conveyed to the people? He consulted a business expert, Mr. Balram who gave him
information on the auxiliaries to trade, which could solve his problem. Farhan understood what
the expert told him. He employed 50 workers and started his business.

(a) Which economic activity is Farhan going to do?

(b) On which part of business was the information given to Farhan by the business expert?
(c) If we add the answer of (a) to the answer of (b) which part of business shall we have?
(d) Explain the auxiliaries to trade which may solve the problem of Farhan, as suggested by the
business

6. Apoorvi, from a young age had a deep connection with traditional Indian textiles
and craftsmanship. Founder and designer Apoorvi Kher who fulfilled her life long dream of
making a career in fashion by leaving her professional life behind and pursued a design
programme at the Los Angeles School of Design and Merchandising. Thus, Apoorvi got maximum
real world fashion exposure. With her love for these Indian fabrics and her arsenal of fashion
knowledge she now intends to glorify these national treasures with her readymade store
‘Armaniya’.
‘Armaniya’ is an initiative to incorporate a perfect mix of latest trends, luxury fabrics, Indian
traditional weaves and culture all under one roof. She manages the business along with two
employees i.e., salesman and a cashier. She usually takes advice from her father in case of any
managerial issue.
Now-a-days, Apoorvi is facing a lot of problem as trends in the field are continually changing,
meaning businesses must continually adapt to market demands, this ever-changing market
along with strong competition has added to the trouble of declining sales. Furthermore, One day
Apoorvi found her cashier doing some embezzlement of cash.
On the basis of the given information about Apoorvi, answer the following questions:

(a) Identify the different causes of business risks discussed in the above case. Also quote the
lines for the identified cause.
(b) Are the above identified risks pure risk or speculative risk? Give reason in support of your
answer.

7. For Proctor and Gamble (P&G) producers of vicks, purpose; values and principles are the
foundation for P&G’s unique culture. Throughout its history of over 170 years, business has
grown and changed while these elements have endured, and will continue to be passed down to
generations of P&G people to come.
Company’s purpose unifies personnel in a common cause and growth strategy of improving
more consumers’ lives in small but meaningful ways each day. It inspires P&G people to make a
positive contribution every day. P&G brands and P&G people are the foundation of P&G’s
success.

P&G people bring the values to life as company focus on improving, the lives of the world’s
consumers. P&G always do the right things with the aim of earning the gains coupled with
enhancement in goodwill and customer satisfaction. Identify the main objectives of the
company discussed in the above case. Also quote the lines for the identified objective.

8. Match the following:

Column A Column B
a. Patliputra 1. Northern Region
b. Chatt 2. Southern India
c. Peshawar. 3. Major centre for export of stones
d. Bhats. 4. Major centre of textile industry
e. Mahajan. 5. Western India
f. Indraprastha 6.Commercial junction on royal road
g. Varanasi. 7. Gujarat & Rajasthan
h. Punjabi,Multani 8. Centre for import of horses

9. In ancient India, the Greeks sailed from Egypt in the month of July and arrived at Muziri in
about 40 days. They stayed on the Malabar Coast for about three months and commenced their
return journey from Muziri in December or January. As the Indian seas were infested by pirates,
the Greek merchants brought with them cohorts of archers on board their ships. Egypt being at
this period subject to Rome, the archers who accompanied the Greek merchants were Roman
soldiers. The Pandyan kings sent embassies to Rome and had employed Roman soldiers as
guards. There was a colony of Yavana merchants at Kaveripattanam, whose existence is an index
of prosperity of merchant communities and professional classes. That Roman gold poured
largely into Tamil country at this period is attested by the numerous Roman coins dating from
the reign of Augustus to that of Zeno which have been found buried in different parts of
Tamilnadu.
On the basis of the given information about ancient India, answer the following questions:
(a) State the concept used in ancient India whose existence is an index of prosperity of
merchant communities and professional classes.
(b) Enlist the important kinds of concept whose existence is an index of prosperity of merchant
communities and professional classes.
(c) Enlist a few examples of the concept used in ancient India whose existence is an index of
prosperity of merchant communities and professional classes.