Business Studies

Case Studies
Chapter 1
Part 1
Q. 1. Armaan is very fond of playing indoor games, he requested his father to buy him some
indoor games. His father sold his old laptop on OLX.com and bought him a new play station
fromCromaelectronix.com.
Can the transaction by Armaan’s father to sell the laptop be termed as a business
transaction? Name the related feature of business to support your answer.

Q. 2. 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.

Q. 3. 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.

Q. 4. 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?

Q. 5. A Chartered Accountant advised his client 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.

Q. 6. Apoorvi, from the young age had a deep connection with traditional Indian textiles and
craftsmanship. Founder and designer Apoorvi kher who fulfilled her lifelong dream of

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making 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 from 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.

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.

Q. 7. Monica Khanna is a jewellery designer. She started her career from scratch and took
advanced designing course at Jewellery Product Development Centre. In the completion of
the course she got the 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, answer the following questions:
a)Identify the type of economic activity that Monica Khanna is engaged in.

b)State any three features of the type of economic activity is identified in part (a)

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