Read the following case study and answer the questions on the basis of the same.

I. Deepti an electronic engineer after completing her MBA from IIM Kolkata, wants to open her
own business of generation of electricity through garbage. She knew that the demand for
electricity is increasing day by day whereas its generation is not sufficient. Secondly, India is
facing the problem of garbage disposal also. She shared her business idea with some of her
friends and they all liked it and agreed to join the business as owners. After detailed
investigation about the idea, i.e., economically viable, technically feasible, Deepti gave her idea
a practical shape and got her company incorporated as‘ ‘Eco Electricity Pvt Ltd.’’ After
incorporation, the company issued share capital of 1 crore in the capital market
1.Name the type of business activity eco electricity is engaged in
(a) primary industry(b) secondary industry(c) service industry(d) trade
2.Deepti wants to open her own business of generation of electricity through garbage. Specify
the category of such type of industry.(a) Analytical(b) Extractive(c) Synthetic(d) Processing
3.“Deepti an electronic engineer after completing her MBA from IIM Kolkata”. Which type of
economic activity highlighted in above lines? (a) Employment(b) Profession(c) Business(d)
Job
4.Which type of trade can be assumed in above case? (a) Internal(b) External(c) Both (a) and
(b)(d) None of these
5.In the above case, hindrance of information is being removed by following which auxiliary?
(a) Transportation(b) Warehousing(c) Advertising(d) Banking

II. Sampat Prasad, a small shopkeeper in Jaipur,Rajasthan used to sell the famous‘Bhujia-Sev’.
It was a quick-selling product for local customers. His son after completing his studies joined his
father’s business and wanted to expand the business by forming a company named Sampat
Bhujia Ltd, offering a wide range of products to its local and to foreign customers like namkeen,
sweets, bakery items, etc. under the same brand name. For fulfilling all the legal formalities to
form the company, he appointed professionals. Now ‘Sampat Bhujia Ltd., is a renowned name
in snacks industry which offered its products at competitive prices even while offering customer
services like gift packaging and free home delivery to become a household name.‘Sampat
Bhujia’ has an efficient marketing department working on minimising business risks from their
competitors by making effective marketing plans, related to physical distribution, promotion of
the brand, effective pricing policies and product development. It has also worked upon
managing public opinion by developing relations with the masses through sponsoring cultural
and sporting events, maintenance of public parks,etc.
6.Name the service used by ‘Sampat Bhujia Ltd, to remove the hindrance of information.(a)
Transportation(b) Warehousing(c) Promotion(d) Marketing
7.For fulfilling all the legal formalities to form the company, he appointed professionals. Who
among the following is appointed as a professional?(a) Promoter(b) Broker(c) Banker(d) All of
these
8.‘Sampat Bhujia’ has an efficient marketing department working on minimising business risks
from their competitors. Which type of risk is this?
(a) Pure risk(b) Speculative risk(c) Financial risk(d) Insurable risk
9.It has also worked upon managing public opinion by developing relations with the masses
through sponsoring cultural and sporting events, maintenance of public parks, etc. Identify the
objective fulfilled by the company by doing so.(a) Economic(b) Social(c) Ethical(d) Legal
10.Which type of industry is ‘Sampat Bhujia Ltd.’?
(a) Genetic(b) Construction(c) Manufacturing(d) Extractive

III. Saloni, Rupali, Mukesh and Rakesh - all the four are members of the same family. Saloni
passed her M.B.B.S examination recently. Immediately, she got the job of a doctor in a
government hospital. Rupali has completed her studies in engineering and has given
herinterview for the post of a production manager in Sharda Cement Limited. She is waiting for
the result and is quite hopeful of her getting selected. Mukesh has his own transport company.
Hiscompany has about 150 vehicles. He had to suffer a heavy loss because of the pandemic
Corona (Covid-19). His company is on the edge of getting closed.
Rakesh is working in the Research and Development Department of Balaji Services Limited. His
full attention is focused one affecting innovation in the services provided by his company. He
knows that in order to sustain for a long-time in market, it is necessary to do something new and
better.
11.Identify the type of work done byDr. Saloni.(a) Employment(b) Profession(c) Business(d)
Trade
12.Identify the class of company in which Rupali has given her interview.(a) Assembling
Industry(b) Synthetic Industry(c) Processing Industry(d) Analytical Industry
13.Which business risk is Mukesh’s company struggling against? (a) Human cause(b)
Economic cause(c) Natural cause(d) None of these
14.Identify the objective of business being fulfilled by Balaji Services Limited.(a) Profit
making(b) Creation of customers(c) Providing employment(d) Innovation
15.Identify the type of work done by Mukesh.(a) Employment(b) Profession(c) Business(d)
None of these
16.Assertion (A) Obsessed with profit, business managers may neglect all other responsibilities
towards customers, employees, investors and society at large
.Reason(R) There is hardly any sizable business enterprise whose only objective is
maximisation of profit.
a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
17. Assertion(A) Obsessed with profit, business managers may neglect all other responsibilities
towards customers, employees, investors and society at large.
Reason(R) There is hardly any sizable business enterprise whose only objective is
maximisation of profit.
a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

18.Assertion(A) Speculative risks involve both the possibility of gain, as well as,the possibility of
loss. Reason(R) Speculative risks arise due to changes in market conditions,including
fluctuations in demand and supply.
a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

19.Assertion(A) Business follows only one objective and expect to achieve excellence.
Reason(R) Objectives are needed in every area where performance and results affect the
survival and prosperity of business.
a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

20.Assertion(A) Every profession restricts the entry on the basis of examination or education.
 Reason(R) A strict code of conduct exists in every profession.
a) Both the Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both the Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

21. Rohit and Gurvinder are partners selling electronic products across India. They import the
components from their friend Atul who operates his business from China and assembles them in
their factory established in a rural area of Jharkhand. Most of the workers in the factory are
children and women. They are paid very less salaries thus owners save on labour cost. They
store their stocks in a warehouse but do not take proper safety measures against fire, burglary
etc. 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, specify the type of business
activity being performed by Atul.
(a) Import trade(b) Entrepot trade(c) Industry(d) Export trade

22. Mechanical failures, political disturbances and other unforeseen events are
(a) natural causes(b) economic causes(c) human causes(d) other causes
23.Monica Khanna is a jewellery designer. She started her career from the scratch and took
advanced designing course at jewellery product development center. On the completion of the
course, she got a job at Gitanjali Gems. Being an experienced jewellery designer, Monica
Khanna focuses on maintaining the originality and creativity of the ornaments that are custom
designed and developed by her.
On the basis of the given information about Monica Khanna, identify the type of economic
activity that Monica Khanna is engaged in
(a) Profession(b) Business(c) Employment(d) All of these
24. Katherine wants to start a retail business of fashion items but changes in taste and
preferences of customers may result in loss in such type of business. She is hesitating as she is
aware of risks which are inherent in every business. She approaches her friend Kristina whose
the owner of a retail shop. Kristina advises her to go ahead with her idea as she will get profit as
return for undertaking risk. She also told her that some risks in business can be insured by
taking insurance policy. On the basis of the given information about Katherine, identify the main
features of business risk discussed in the above case.
(a) Uncertainties(b) Degree of risk depends upon nature of business(c) Size of business(d)
None of the above
25. Mariah had done a diploma in fashion designing. She is very creative. She saw a picture of
a party gown in an international fashion magazine, having a price tag of`50,000. She decided to
make that gown herself with some customisation. She calculated that for making of gown, she
has spent`4,000. Her friend liked the gown very much, so Mariah sold that gown to her friend
for`8,500 and made a profit of`4,500. Due to this transaction, Mariah decided to open a boutique
of making gowns and selling them in the market with nominal profit.
On the basis of the given information, identify the relevant feature of business highlighted here.
a) Production of goods and services(b) Profit earning(c) Dealing in goods and services on
regular basis(d) Uncertainty of return
26. Which auxiliary to trade bridges the time gap between production and consumption?
(a) Advertising(b) Banking(c) Insurance(d) Warehousing

27. GMR Industries entered the airports space in early 2000 and is today counted amongst the
top 5 private airport developer and operators globally. GMR Industries presently owns and
operates Delhi International Airport and Hyderabad International Airport. Apart from being the
largest private airport company in India, GMR Industries is the only Indian airport developer to
have developed and operated airports outside India. Identify the type of industry being
discussed in above case.
(a) Primary(b) Secondary(c) Tertiary(d) None of the above