Chapter 1

Self learning worksheet

Q1. Sheela after graduating from college went back to her home town in
Meghalaya. It was a small town with very few job opportunities. The Karbi tribal
women in that area were uneducated but still practiced the method of obtaining
traditional colours from natural wild herbs. Their most popular dye was indigo
obtained from the leave called sibu. Using these colours they added variety to their
textiles. The women were mainly confined to their homes and they did not know
how to make a living out of their talent. Sheela went from door to door and
analysed the problem that existed. She thought of setting up business of buying
textiles from them and converting them to suits in her factory in Noida. Her
business turned out to be a great success.
On the basis of given information answer the following questions:
a. Identify the type of business activity Sheela is engaged in.
b. Specify the category of the type of business activity performed by Sheela.
c. Which type of business activity is undertaken by Karbi tribal women by
getting indigo obtained from the leave called sibu. (3 marks)
Q2. Name the instrument of exchange prominent in the great ancient commercial
centres of India. State any two features of this instrument. (3 marks)
Q3. Monica is a jewellery designer. She started her career from the scratch and
took advanced designing course at Jewellery Product Development Center. On the
completion of the course she got a job at Gitanjali Gems . Being an experienced
jewellery designer she focusses on maintaining the originality and creativity of the
ornaments that are custom designed and developed by her.
On the basis of given information answer the following questions:
a. Identify the type of economic activity Monica is engaged in.
b. State any three features of the type of economic activity as identified in part
(a). (3 marks)
Q4. X and Y are partners selling electronic products across India. They import the
components from their friend Z who does his business in China and assemble them
in their factory established in a rural area of Jharkhand. Most of the workers in the
factory are children and women. They are paid very less salaries thus owner save
on labour cost. They store their stocks in warehouse but donot take proper safety
measures against fire, burglary. There was a short circuit in the factory and as a
result most of the stock was damaged.
On the basis of given information answer the following questions:
a. Identify the type of business activity X and Y are engaged in.
b. Specify the type and category of business activity performed by Z.
c. Specify the auxiliary to trade used by X and Y.
(3 marks)
Q5. Sona Technologies Ltd. have developed a hand powered , portable washing
machine that can clean your clothes in a flash. Their product is very different as
compared to other washing machines presently sold in the market. The profit
margins are kept low to motivate people from lower middle class to buy the
product. The company wants to provide information about new features, price,
availability and brand name to the target market. Presently the company is only
delivering their product in Japan but they are planning to tie up with Amazon for
delivering it to other parts of world too.
On the basis of given information answer the following questions:
a. Name and explain the aids to trade which the company can utilize to inform
the target market about their product.
b. Which hindrance of commerce is removed by Amazon? (3 marks)
Q6. Myra Infosystem ltd. is a company engaged in IT enabled services. The
company’s profits are enough for the survival and growth. The management of the
company believes that a satisfied employee creates a satisfied customer, who in
turn creates profits that lead to satisfied shareholders. So it pays competitive
salaries and perks to all its employees. All the employees are happy working in the
organization because of personal growth and development.
The company had a strong sense of social responsibility. It has set up engineering
college in which one-third of the students are girls to whom the company grants
annual scholarships.
On the basis of given information answer the following questions:
a. Identify and explain the objectives of business discussed above
b. Explain the role of profit in business.
c. Why profit can not be considered as the sole objective of business (6 marks)
 Q7. Ajit was running a trading business in India. Now he extended its operations
to Dubai and USA by establishing places of business in these countries. In order to
increase sales in Dubai the company adopted selling strategies like sales promotion
and advertising. As the company had an excellent credibility in the capital market
it was able to meet all its financial requirements by borrowing from Citi Bank.

On the basis of the given information about Ajit answer the following questions:
a. Identify and explain the auxiliaries to trade used by Ajit for running his
business.Also quote lines.
b. Identify the type of trade carried on by Ajit earlier and now.

Q8. National mineral corporation of India, incorporated in 1958 as a government

of India fully owned public enterprise. Under the administrative control of the
ministry of steel, government of India, the NMDC is India's single largest iron
producer, presently producing about 30 million tons of iron ore from 3 fully
mechanized mines.
The NMDC is actively involved in the exploration of a wide range of minerals
including iron ore, copper, rock for sweet, limestone, dolomite, gypsum,
bentonite , meganized, diamond, tungsten, graphite ,beach sands etc.
On the basis of the given information about national mineral corporation of India
answer the following questions:
a. Identify the types of industry and its category being discussed in the above
case
b. Mention the other industry which falls in same category and give 2
examples who examples

Q9. Mr. Smith is a qualified dentist with lots of patience. He opened a medical
store in partnership with his friend John within the premises of his nursing home.
In order to money quickly he started procuring medicines from substandard
pharmaceutical companies on which more commission was available. He used to
prescribe only those medicines which were available in his medical store. On the
basis of the given information about Mr. Smith, answered the following questions:

a. Name the economic activity Which Mr. Smith is doing as a dentist.

b. State the type of economic activity done by him with his friend John.
Q10. Tarun is engaged in lumbering. He thinks of diversifying his business and
decides to import a new cattle breed from abroad. For the movement of cattle he
appoints Fast and Quick Limited that deals in transportation of livestock. Once his
goods are ready the consumers are made aware by advertisements and other sales
promotion techniques. On the basis of the given information about business done
by Tarun, answer the following questions:
a. Identify the types of industry and the category of industry in which the Tarun
is dealing.
b. Identify and explain industry in which fast and quick limited is dealing.

Q11. Robert has just completed his post graduation in fashion designing from a
Premier institute of designing. Being from a fashion industry, trends of dresses
and choices are well known to him. He opened a huge business house for ladies
clothing off latest fashion. He is well versed with the trend but does not possess
any business experience. His target is to capture not only the national market but
also the International. He received a bulk export order. But due to negligence of
his employees the shipment was rejected and he suffered a huge loss. On the
basis of the given information about Robert, answer the following questions:
a.Identify the cause of business risk by quoting the line
b.State causes of business risk other than identified in part (a)above.

Q12. Nirma became a huge success and all this was a result of Karson Bhai
Patel's entrepreneurial skills. Karsonbhai patel had good knowledge of chemicals
and he came with Nirma detergent which was a result of innovative combination
of the important ingredients. Indigenous methods were used and also the
detergent was more environment friendly. Consumers had a good quality
detergent powder, having an affordable price tag. Nirma focused on cost
reduction strategies to make a place for itself in the market and earned a lot of
Profit. Nirma has always been known for offering quality products at affordable
prices and thus creating good Value for the consumer's money. On the basis of
the given information about Nirma, answer the following question:
Identify and explain the types of objectives which the company has set. Quote the
lines for each type from the above para.
Q13. New land tea limited is a Singapore based company dealing in import of tea
from India and re exporting it to many Southeast Asian countries. It has a huge
godown near the sea port where it has made scientific arrangements for sorting tea
till it is re- exported. On the basis of the given information about Newland Tea
limited, answer the following questions:
a. Name and explain the type of trade referred above
b. Name the aid to trade being utilised by New land Tea limited and which
utility does it create?