CASE STUDIES ASSIGNMENT CH-1 BUSINESS, TRADE AND COMMERCE

1. Bhavesh is running a Bakery Shop under the name 'Puri Bakers'. On the occasion of his relative's birthday, he
supplied Cakes, Pastries and Pizza worth ₹ 3,000. However, Bhavesh refused to take money from his relative.
Will this supply of items from Bhavesh's Bakery will be classified as a business activity?

2. Mukul produces goods, but all the goods are used by him for personal consumption and not even a single good
is sold in the market. Will it be considered a business activity? Give reason.

3. Mr. Kamal Mehra is a practicing-chartered accountant his wife is a bank manager in Punjab National
Bank ok and his son are now has a factory in Delhi manufacturers shoe. Name the economic activities in
which Mr Mehra & Mrs Mehra are now are engaged.

4. Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an architect. They
contributed equal amounts and purchased a building for Rs. 2 crores. After a year, they sold it for Rs.3 crores
and shared the profits equally. Are they doing the business in partnership?

5. Climax Ltd. decided to open the new factory for readymade garments in the remote area of Bihar. Company aim
is to generate employment opportunities for the unemployed youth and to raise standard of living of people in the
rural areas. Identify the objective of business Which is a followed by the company.

6. Tushar runs a well-known fashion store (dealing in women wear) in Mumbai. He procures garments from
different fashion designers and sells them to dealers all over the country. He also owns a godown to hold the
surplus stock. Due to sudden increase in demand and to maintain stock for peak period, Tushar took a loan of
10,00,000 from Kotak Bank. He has also taken an insurance policy worth 2 crores for his business. Identify the
'Auxiliaries of Trade' being used by Tushar in his business by quoting lines from the given case.

7. Pramesh was a successful businessman and owned a departmental store. He was aware of the fact that
profit is the reward of risk bearing. So, in order to earn more profits, he opened two more departmental
stores and employed a team of young staff to look after the stores. Initially, the staff was very sincere and
Pramesh earned huge profits from his 3 departmental stores. However, over the last two years, his business
is running into losses. On close analysis, he found that his staff was not giving much attention to the
customers. Moreover, there were many cases of embezzlement (misappropriation of funds) by the
employees. Identify and explain the main cause behind the losses in the Pramesh's Business.

8. Mysha took advanced fashion designing course at Pearl Academy to become a fashion designer. After
completion of the course, she got a job at Trendz Fashion. Sheused her expertise to design modern outfits.
which became famous overnight. Identify the type of economic activity that Mysha is engaged in.
9. Sridhar is planning to set up a book store in a popular complex in Lucknow. His prime idea of promoting this
business is to reinstate the diminishing reading habits among the people of all age groups. The publication of
books usually takes place in particular locations. Besides, he also a needs communication facility so as to enable
publishers, traders and consumers exchange information with one another. He is planning to take a loan of Rs.2
lakh from bank for his business. Moreover, he will be using facilities of cheque payment, online payment etc. for
various transactions. Considering the fact that his business will involves various types of risks and must be
protected against fire, theft and other risks. Also, material and goods kept in stock or in transit are subject to the
risk of loss or damage. At the same time, employees are also required to be protected against the risks of accident
and occupational hazards. Furthermore, he needs to inform and persuade the target market about his business so as
to promote his business. In context of the above case: a) Identify the different auxiliaries to trade which Sridhar
will require by quoting the relevant lines.

10. Rishabh had to face heavy losses in tourism business due to the devastating floods in Kerala. In order to
revive business, he has introduced many attractive travel packages and invested huge amount in promoting these
lucrative offers to the prospective consumers. In context of the above case: 1. Identify and differentiate between
the types of business risk being mentioned in the above paragraph.

11. 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 chefs 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.
Also, quote the relevant lines.

12. Sarika is running a 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.

13. Amanpriya works in a private sector bank, as a public relation officer whereas herTriend Kanupriya is
employed in a food processing industry at the post of production coordinator. a) Identify and explain the types of
industries which are being mentioned in the given lines in reference to the board classification of industries

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

15. Name the services which is related in the given case-

a) The hindrance of knowledge b) The hindrance of exchange c) The hindrance of place d) The
hindrance of time e) The hindrance of risk

16. Identify between business, Profession and employment-

a) Hari sells mobile phone on behalf of his employer
b) It requires minimum academic qualifications and other qualification c) A hawker sells toys for children outside a
function d) Sanjay is an advocate of high court
e) Dhruv is manager of mobile company f) A person repairs scooters on roadside

17. Farhan , a young man , wants to provide employment to the local prople 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 dusiness 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 expert.