What is business risk? What is its nature?
Risk implies uncertainty of profits or danger of loss due to the chance of loss due to some unforeseen events in future. It refers to the chance of loss on account of unfavourable or unpredictable happenings. Risk is the possibility of loss arising out of future uncertainties. Risk occurs when there is an adverse deviation from desired or expected outcome. According to wheeler, risk is the chance of loss. It is the possibility of some unfavourable occurrence.
In every risk, there exists a possibility of loss which may or may not be measurable. The person or organisation exposed to the risk may or may not be aware of the possibility of loss. Every risk arises from a ‘peril’ or contingency and it is magnified by a ‘hazard’. A peril creates the risk while a hazard influences the degree of risk. For instance, fire is a peril which creates a chance of loss. For example, the petrol stored in a building is the hazard which increases the possibility of loss.
Nature of business risk:
a. Business risks arise due to uncertainties.
b. Risk is an essential part of every business.
c. Degree of risk depends upon the nature and size of business. d. Profit is the reward of risk taking.
What factors are to be considered while starting a business? Explain.
Discuss the development of indigenous banking system in Indian subcontinent.
What were the different types of Hundi in use by traders in ancient times?
Define Industry. Explain various types of industries giving examples.
Why is business considered as economic activity?
List the major exports and imports in ancient India.
Define business. Describe its important characteristics.
State the different types of economic activities.
List any five major commercial cities of ancient India?
Describe the activities relating to commerce.
Define services and goods.
State any three differences between e-business and traditional business.
1. The structure in which there is separation of ownership and management is called
(a) Sole proprietorship (b) Partnership
(c) Company (d) All business organisations
2. The karta in Joint Hindu family business has
(a) Limited liability (b) Unlimited liability
(c) No liability for debts (d) Joint liability
3. In a cooperative society the principle followed is
(a) One share one vote (b) One man one vote
(c) No vote (d) Multiple votes
4. The board of directors of a joint stock company is elected by
(a) General public (b) Government bodies
(c) Shareholders (d) Employees
5. Profits do not have to be shared. This statement refers to
(a) Partnership (b) Joint Hindu family business
(c) Sole proprietorship (d) Company
6. The capital of a company is divided into number of parts each one of which are called
(a) Dividend (b) Profit
(c) Interest (d) Share
7. The Head of the joint Hindu family business is called
(a) Proprietor (b) Director
(c) Karta (d) Manager
8. Provision of residential accommodation to the members at reasonable rates is the objective of
(a) Producer’s cooperative (b) Consumer’s cooperative
(c) Housing cooperative (d) Credit cooperative
9. A partner whose association with the firm is unknown to the general public is called
(a) Active partner (b) Sleeping partner
(c) Nominal partner (d) Secret partner
1. A government company is any company in which the paid up capital held by the government is not less than
(a) 49 per cent (b) 51 per cent
(c) 50 per cent (d) 25 per cent
2. Centralised control in MNC’s implies control exercised by
(a) Branches (b) Subsidiaries
(c) Headquarters (d) Parliament
3. PSE’s are organisations owned by
(a) Joint Hindu family (b) Government
(c) Foreign Companies (d) Private entrepreneurs
4. Reconstruction of sick public sector units is taken up by
(a) MOFA (b) MoU
(c) BIFR (d) NRF
5. Disinvestments of PSE’s implies
(a) Sale of equity shares to (b) Closing down private sector/public operations
(c) Investing in new areas (d) Buying shares PSE’s
6. The equity-based joint venture does not include
(a) Cooperative development (b) Company
(c) Partnership (d) Limited liability partnership
What is e-banking. What are the advantages of e-banking?
How does outsourcing represent a new mode of business?
Write a note on various telecom services available for enhancing business.
Describe briefly any two applications of e-business.
Explain briefly the principles of insurance with suitable examples.
What are the ethical concerns involved in outsourcing?
Describe various types of insurance and examine the nature of risks protected by each type of insurance.
1. A government company is any company in which the paid up capital held by the government is not less than
(a) 49 per cent (b) 51 per cent
(c) 50 per cent (d) 25 per cent
2. Centralised control in MNC’s implies control exercised by
(a) Branches (b) Subsidiaries
(c) Headquarters (d) Parliament
3. PSE’s are organisations owned by
(a) Joint Hindu family (b) Government
(c) Foreign Companies (d) Private entrepreneurs
4. Reconstruction of sick public sector units is taken up by
(a) MOFA (b) MoU
(c) BIFR (d) NRF
5. Disinvestments of PSE’s implies
(a) Sale of equity shares to (b) Closing down private sector/public operations
(c) Investing in new areas (d) Buying shares PSE’s
6. The equity-based joint venture does not include
(a) Cooperative development (b) Company
(c) Partnership (d) Limited liability partnership
Discuss the salient aspects of B2C commerce.
What are services? Explain their distinct characteristics.
Describe briefly the data storage and transmission risks in e-business.
What is e-banking. What are the advantages of e-banking?
Evaluate the need for outsourcing and discuss its limitations.
Explain the functions of commercial banks with an example of each.
Why are e-business and outsourcing referred to as the emerging modes of business? Discuss the factors responsible for the growing importance of these trends.