Sources of finance

Q Explain preferential rights given to preference shareholders ? (1)

Q what is meant by working capital? State the purposes for which a business requires working capital?
(3)

Q Differentiate between public deposits & Bank loan? (4)

Q The director of ABC ltd. have decided to modernize the plant and machinery at an estimated cost of
rupees 1 crore, but are in fix whether to issue equity shares or debentures for this purpose. As a finance
manager of the company, advise the directors whether to issue equity shares or debentures in the
interest of the company? (5)

Or

As a source of finance retained profit is better than other source. Do you agree with this view? Give
reasons for your answer. Can company indefinitely by re –investing surplus profits?

Q Explain ADR, GDR & IDR along with its features (6)

Or

Explain ICD its types, merits and demerits

Small business

Q Do you think large number of industries are nowadays setting up there plants or industry in rural areas
or backward areas are being benefited by government in various forms? (4)

Q “ The path of small scale industries is full of hurdles” In the light of this statement discuss the problem
faced by small scale industries? (5)

Or

Explain the role of small scale business in India

Internal Trade

Q Differentiate between chain stores and departmental stores (6)

(a) Location
(b) Range of product
(c) Flexibility
(d) Price charged
(e) Risk
(f) Credit Facilities
(g) Class of Customers
Q11. PQR Ltd. firms buys Basmati Rice from different Manufacturers in huge quantities and sells these to
XYZ Ltd., ABC Ltd.. etc. in small quantities under their own Brand name.

(i) In your opinion what services will PQR Ltd. Firms provide to XYZ Ltd. & ABC Ltd.? (State any
2)
(ii) What services are provided by PQR Ltd. firms to manufactures? (State any2)
(iii) What services are provided by PQR Ltd. firms to the society? (State any 2) (5)

Q Explain different types of small Fixed shop retailers with examples? (5)

Social responsibility

Q Describe the obligation of business towards owners, Shareholders & Investors (3)

Q Explain various kinds of social responsibility with example (3 )

Banking

Q Differentiate between life, Marine and Fire insurance (4)

Q Mr X owns a fashion boutique and operates a current account with the coming wedding season, she
is facing shortage of funds. He has applied for assistance from her bank. Since his past track record is
good, therefore the bank has credited Rs. 200,000 to her account and she can withdraw the money as &
when needed

(A) Identify the concept discussed

(B) State any two features of the concept identified in (A) above. (4)

Q17. a. Akshay has taken a life insurance policy hiding the fact that he is a heart patient;
later on he dies due to a heart attack. Is the insurance company liable to pay the
insured amount to the legal heirs of Akshay? Explain the principle of insurance violated above.

b. Rahul has taken fire insurance policy for his factory. Due to fi re he suffered a loss of
Rs 4 lakh and he got the compensation for the same. The half burnt goods can be sold
for Rs 40,000. Who has the right over it and why? (4)

Q Explain any four banking services (4)

Emerging modes of business

Q Explain various Application/ Utility of smart cards (3)

Q Explain features of BPO (3)

Public, Private & global enterprise

Q MNC’c have a great impact on international economy. A study has revealed the top 200 MNC’s control
over a quarter of the world economy” In light of the above statement, Explain features of MNC’s (4)

Q “Railways is a form of public sector enterprise which operates under the control of the railway
ministry (3)

(a) Identify the form of public sector enterprise

(b) Explain any 2 merits and demerits of the enterprise identified above in point (a)

Ch-2

Identify the documents which lays down

(a) The charter which defines powers and objects of the company as well as the scope of operations
of the company beyond which it cannot operate
(b) The documents which defines rules and regulations for internal management of the affairs of
company
(c) Explain in detail object clause, situation clause and Association clause (4)

Q “One man control is best in the world if that one man is big enough to manage everything” Explain the
statement