Business Studies (215) - April' 2012 | NIOS SECONDARY Solved Papers

BUSINESS STUDIES (April’ 2012)
(215)
NIOS SECONDARY Solved Papers
Time: 3 Hours
Maximum Marks: 100

10. One of your friends purchased a car but found many defects in it. The dealer is neither replacing it nor taking it back and return the money. Explain to him the judicial system set up under the Consumer Protection Act, 1986 so that your friend can seek legal remedy.3

Ans.:- The judicial system set up under the Consumer Protection Act, 1986, consists of consumer court at the district level, state level and national level. The district forum has the jurisdiction to deal with all complaints where the value of the goods or services or the compensation claimed does not exceed Rs. 20 lacks. The State Commissions are empowered to deal with cases where the value or amount involved exceed Rs. 20 lacks but not exceed Rs. One crore. The commissions also deal with appeals against the orders of the District Forum. The National commission has the juistisdiction to take up all claims and grievances exceeding the value of Rs. One crore. It has also applellate jurisdiction, that is, power to deal with appeals against orders passed by State Commissions. An aggrieved party can appleal to the Supreme Court against the orders of the National Commission.

11. Explain in brief the following characteristics of business:     3

(a) Regular exchange of goods and or services

(b) Involves risk and uncertainty of income

Ans.:- Characteristics of business

(a)    Regular exchange of goods and or services:- The production or buying and selling activities must be carried out on a regular basis. Normally an isolated transaction is not treated as business.

(b)   Involves risk and uncertainty of income:- We know that every business aims of earning profit. The businessman who invests the various resources expects a fair amount of return. But, inspite of his/her best efforts, the reward he/she gets is always uncertain. Sometimes he/she enjoys profits and also times may come when he suffers heavy losses. 

12. Explain in brief the following economic objectives of business:        3

(a) Profit earning

(b) Creation of customers

Ans.:-(a) Profit earning:- Profit is the lifeblood of business, without which no business can survive in a competitive market. Thus, profit making is the primary objective for which a business unit is brought into existence. Profits help businessmen not only to earn their living but also to expand their business activities by reinvesting a part of the profits.

 (b) Creation of customers:-  A business unit cannot survive unless there are customers to buy the products and services. Again a businessman can earn profits only when he/she provides quality goods and services at a reasonable price. For this it needs to attract more customers for its existing as well as new products.

13. State any three features of a promissory note.           3

Ans.:- The following are the features of a promissory note:-

a)      It must be in writing

b)      It must contain an unconditional promise to pay.

c)       The sum payable must be certain.

14. Explain in brief the principle of Subrogation.              3

Ans.:- In the contract of insurance subrogation means that after the insurer has compensated the insured, the insurer gets all the rights of the insured with regard to the subject matter of the insurance. For example, suppose goods worth Rs. 20,000/- are partially destroyed by fire and the insurance company pays the compensation to the insured, then the insurance company can take even these partially destroyed goods and sell them to the market.

15. Give any three points of difference between self-employment and wage employment.3

Ans.:- Differences between self employment and wage employment:-

16. Explain in brief two conditions of employment.        3

Ans.:- Wage employment:- Wage employment means serving another person for wages or salary. If someone is appointed as office assistant, he is expected to do what the office supervisor wants him to do, and he gets a monthly salary for his job. This type of employment is based on a contract between the employers and employee.

Self employment:- If an individual engages in any economic activity and manages it on his own, it is known as self-employment. In every locality, you may come across small stores, repair shops or service units. These establishments are owned and managed by a single person, sometimes they engage one or two assistants for help.

17. Explain ‘Certificate of Posting as a specialised mail service of Post Office.    3

Ans.:- Certificate of Posting:- If a sender wants to have a proof that he/she has actually posted the letters, then a certificate can be obtained from the post office on payment of prescribed charge. This is called ‘certificate of posting’. In order to have such a certificate you just need to write the complete address of the receiver and sender on a plain paper and affix the required postage on it. This paper along with the letters in handed over to the post office. The post office will put its seal on that paper and return it to you. This paper now serves as an evidence of posting the letters. But remember to write UPC on the face of your mail. UPC stands for ‘Under Postal Certificate’. It may serve as an evidence of posting in case of any dispute about communication.

18. Enlist six areas of self-employment.               3

Ans.:- Following are the areas of self-employment:-

i.         Small scale retail business.

ii.       Providing services based on individual skills.

iii.      Occupations based on professional qualifications.

iv.     Farming on a small scale.

v.       Village and cottage industries.

vi.     Arts and crafts.

19. State any three advantages of Television Advertising.            3

Ans.:- The following are the advantages of Television Advertising:-

(i)      It is most effective as it has an audio-visual impact.

(ii)    With catchy slogans, song and dance sequences, famous personalities exhibiting products, TV advertising has a lasting impact.

(iii)   With varieties of channels and programmes advertisers have a lot of choice to select the channel and time to advertise.

20. State any three responsibilities of business towards owners.             3

Ans.:- The primary responsibilities of business towards its owners are:-

a.       run the business efficiently,

b.      proper utilisation of capital and other resources,

c.       growth and appreciation of capital.

21. How is insurance important both for the business as well as for the country? Explain. 5

22. Explain in brief any five functions of retailers.           5

Ans.:- The following are the functions of retailers

(I)     Buying and Assembling of goods:- Retailers buy and assemble varieties of goods from different wholesalers and manufacturers. They keep goods of those brands and variety which are liked by the customers.

(II)   Storage of goods:- To ensure ready supply of goods to the customer retailers keep their goods in stores. Goods can be taken out to these store and sold to the customers as and when required.

(III) Credit facility:- Although retailers mostly sell goods for cash, they also supply goods on credit to their regular customers. Credit facility is also provided t o those customers who buy goods in large quantity.

(IV) Personal services:- Retailers render personal services to the customers by providing expert advice regarding quality, features and usefulness of the items. They give suggestions considering the likes and dislikes of the customers.

(V)   Display of goods:- Retailers display different types of goods in a very systematic and attractive manner. It helps to attract the attention of the customers and also facilitates quick delivery of goods.

23. Describe any five qualities of a successful entrepreneur.      5

Ans.:- Five qualities of a successful entrepreneur are as follows:-

(1)    Initiative:- In the world of business, opportunities come and go. An entrepreneur has to be a man of action. He should be able to initiate action and take advantage of the opportunity.

(2)     Willingness to assume risk:- In any business there is an element of risk. It implies that a businessman may be successful or unsuccessful. In other words, it is not necessary that every business shall earn profit. However, an entrepreneur always volunteers to take risks to run a business and be successful.

(3)    Ability to learn from the experience:- An entrepreneur may commit mistakes. However, once a mistake has been committed, it should not be repeated as that entrepreneur, therefore, should have the ability to learn from the experience.

(4)    Motivation:- Motivation is  the key to success. This is necessary for success in every walk of life. Once you get motivated to do something you will not rest unless you complete it.  For example, sometimes you become so much interested in reading a story or a novel that you do not sleep unless you complete it.

(5)    Self-confidence:- For achieving success in life, one should have confidence in himself or herself. A person who lacks confidence can neither do any work himself nor can inspire others to work. A successful entrepreneur must have self-confidence.

24. Explain the following responsibilities of consumers:              5

(a) Responsibility of self help

(b) Proper claim.

Ans.:- Responsibilities of consumers:

(a)    Responsibility of self help:- It is always desirable that a consumer should not depend on the seller for information and choice as far as possible. As a consumer, you are expected to act in a responsible manner to protect yourself from being deceived. An informed consumer can always take care of his/her interest mere than anyone else.

(b)   Proper claim:- Another responsibility that consumers are expected to bear in mind is that while making complaints and claiming compensation for loss or injury, they should not make unreasonably higher claims. Very often, consumers have to exercise their right to seek redressal in a court.

25. Warehouses perform many functions’. Explain any five such functions.        5

Ans.:- The following are the functions of warehouses:

(i)     Storage of goods:- The basic function of warehouses is to store large stock of goods. These goods are stored from the time of their production or purchase till their consumption or use.

(ii)   Protection of goods:- A warehouse provides protection to goods from loss or damage due to heat, dust, wind and moisture, etc. it makes special preventive arrangements for different products according to their nature. It cuts down losses due to spoilage and wastage during storage.

(iii) Risk bearing:-  Warehouses take over the risks incidental to storage of goods. Once goods are handed over to the warehouse-keeper for storage, the responsibility of these goods passes on to the warehouse-keeper. Thus, the risk of loss or damage to goods in storage is borne by the warehouse keeper.

(iv)  Financing:- When goods are deposited in any warehouse, the depositor gets a receipt, which acts as a proof about the deposit of goods. The warehouses can also issue a document in favour of the owner of the goods, which is called warehouse-keeper’s warrant. This warrant is a document of title and can be transferred by simple endorsement and delivery. So while the goods are in custody of the warehouse-keeper, the businessmen can obtain loans from banks and other financial institutions keeping this warrant as security.

(v)    Processing:- Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable.  For example, paddy is polished, timber is seasoned, fruits are ripened, etc.

26. Explain in brief any five advantages of Multinational Companies.    5

Ans.:- Advantages of Multinational companies

(i)     Investment of Foreign Capital:- Direct investment of capital by Multinational Companies helps under-developed counties to speed up their economic development.

(ii)   Generation of Employment:- Expansion of industrial and trading activities by Multinational Companies leads to creation of employment opportunities and raising the standard of living in host countries.

(iii) Increase in Exports and Inflow of Foreign Exchange:- Goods produced in the host countries are sometimes exported by Multinational Companies. Foreign exchange thus earned contributes to the foreign exchange reserves of host countries.

(iv)  Healthy Competition:- Efficient production of quality goods by Multinational Companies prompt the domestic producers to improve their performance in order to survive in the market.

(v)    Use of Advanced Technology:- With substantial resources Multinational Companies undertake Research and Development activities which contribute to improved methods and processes of production and thus, increase the quality of products. gradually, other countries also acquire these technologies.

27. Explain in brief outer qualities of a good business letter.      7

Ans.:- Outer qualities of a good business letter are:-

(a)    Quality of paper:- The paper used should be in accordance with the economic status of the firm. Now-a-days the cost of the paper is very high. Therefore, good paper should be used for original copy and ordinary paper may be used for duplicate copy.

(b)   Colour of the Paper:- It is better to use different colours for different types of letters, so that the receiver will identify the letters quickly and prompt action can be taken.

(c)    Size of the paper:- Standard size paper (A4) should be used while writing business letters. The size of the paper should be in accordance with the envelopes available in the market.

(d)   Folding of letter:- The letter should be folded properly and uniformly. Care should be taken to give minimum folds to the letter so that it will fit the size of the envelope.

(e)   Envelope:- The size and quality of the envelope also need special attention. The size of the latter should fit the size of the letters. The business firms use different types of envelopes i.e. ordinary envelope, window envelope, laminated envelope etc. In window envelope there is no need to write the address of the receiver separately on the envelope. It is clearly visible through the transparent part on the face of the envelope, which may be called as window.

28. Define personal selling. State any five qualities of a successful salesperson.              7

Ans.:- Personal selling refers to the presentation of goods and services before the customers and convincing or persuading them to buy the products or services.

Qualities of a Salesperson engaged in personal selling:-

a)      Physical qualities:- A salesperson should  have a good appearance and an impressive personality. He should also have sound health.

b)      Mental qualities:- A good salesperson should posses certain mental qualities like imagination, initiative, self-confidence, sharp memory, alertness etc. he should be able to understand the needs and preferences of customers.

c)       Integrity of character:- A good  salesperson should posses the qualities of honesty and integrity. He is to gain the confidence of the customers. He should be able to understand their needs and guide them how to satisfy those needs.

d)      Knowledge of the product and the company:- A salesperson should have full knowledge of the product and the company he is representing. He should be able to explain each and every aspect of the product i.e. its qualities, how to use it, what precautions to be taken etc.

e)      Good behaviour:- A salesperson should be co-operative and courteous. Good behaviour enables one to win the confidence of the customers. He should not feel irritated if the buyer puts up many questions even if the questions are irrelevant.

29. Farmers of nearby villages who grow vegetables, want to form an organisation so that they can sell their products in the market directly eliminating the middlemen. Which form of organisation will be suitable for them? Give any six advantages of such organisation.      7

30. Define expenditure. State any five avenues, where one can incur expenditure.         7

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