NIOS Free Solved Assignments (2019 - 2020): BUSINESS STUDIES 215 ENGLISH MEDIUM

Business Studies (215)

Tutor Marked Assignment

Max. Marks: 20

Note: (i) All questions are compulsory. The marks allotted for each question are given at same place.

(ii) Write your name enrollment numbers, AI name subject on the top of the first page of the answer sheet.

1. Answer any one out of the following questions in about 40-60 words.      2

a. Tiny tom works for a very large firm but is unhappy in his job. He feels that his skills could be used to run his own business repairing farm machines. What problems might arise if the new business is run as a Sole Proprietorship?

Ans: If Tiny tom start his own sole trade business, he can face the following problems:

a) Shortage of capital

b) Unlimited liability in case of loss

c) Lack of continuity in case of his illness or incapability.

d) Lack of managerial skill.

b. Reena and Teena are doing a Partnership firm business. They came to know the advantages of Co-operative societies. Guide them to change that establishment as Cooperative society by describing the advantages of cooperative societies.

Ans: Partnership firm suffers from various limitation. If partner Reena and Teena wants establish co-operative society, then the following advantages they will enjoy:

a)      Limited liability: In most cases, the liabilities of the members of the co-operative society are limited to the extent of capital contributed by them.

b)      Democratic management: Every member has equal rights through its single vote and can take active part in' the formulation of the policies of the co-operative society.

2. Answer any one out of the following questions in about 40 to 60 words.       2

a. Teddy is a shareholder of a Joint Stock Company. What advantages must have been enjoyed by Teddy, as a shareholder of Joint Stock Company?

Ans: Advantages of Teddy as a shareholder of Joint Stock Company:

a) Liability of Teddy is limited upto the amount paid on the shares of the company.

b) He will get dividend out of profits of the company.

c) Shares are freely transferable.

d) Every shareholder has the right to vote in the company’s meetings.

b. Differentiate between a Government Warehouse and a Bonded Warehouse.

Ans: The government warehouses are owned, managed and governed by Central or State government for storage of goods. Government warehouses provide better security and safety of goods at least cost but requires considerable paper work to be done.

Bonded warehouses are licensed by the government to accept imported goods prior to payment of tax and customs duty. Importers are not permitted to remove goods from the docks until the airport customs duty is paid.

3. Answer any one out of the following questions in about 40 to 60 words.     2

a. Mr. Narayan is the sole owner of a juice Business. He decides to sell his product to a far off place. What advantage of a Road Transport should come to his mind before transporting his products?

Ans: Advantages of road transport for small business houses:

a) It involves less cost and safe as compared to other  mode.

b) It is more appropriate for short distance. It is cheaper and speedier.

c) Door to door service is possible.

d) Less capital investment.

b. Identify economic and non-economic activity from these statements:

i. Mr. Chaitanya playing football for his country.

ii. Ms. Sharanya watching a dance program in a Television.

Ans: i. It is a economic activity. It is an economic activity because they are paid by the country for their service.

ii. It is a non-economic activity because watching a television is a personal interest of an individual that do not include any money transactions.

4. Answer any one out of the following questions in about 100 to 150 words.       4

a. Explain what a firm should consider as advantage of 'Warehousing' before storing its products.

Ans: Advantages of Warehousing:

a)      Consolidation: The warehouse receives and consolidates, materials/goods from different production plants and dispatches the same to a particular customer.

b)      Break the bulk into smaller quantities: The warehouse helps in dividing the bulk quantity of goods received from the production plants into smaller quantities.

c)       Stock piling: Warehousing helps in seasonal storage of goods to select businesses. They are made available to business depending on customers demand.

d)      Value added services: Certain value added services are also provided by the warehouses, such as in transit mixing, packaging and labeling.

e)      Price stabilization: By adjusting the supply of goods with the demand situation, warehousing helps in  stabilising prices.

f)       Financing: Warehouse owners advance money to the owners on security of goods and further supply goods on credit terms to customers.