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Business Studies Assessment - Katol Road

The document contains a practice assessment test for Business Studies with 7 multiple choice and descriptive questions. Question 1 asks about characteristics of trade credit. Question 2 asks about factors affecting fixed capital requirements. Question 3 asks about how wholesalers provide financial assistance to manufacturers. Question 4 provides a case study and asks to identify 3 features of the retail outlet described. Question 5 provides a case study about a chemical company raising funds through debentures and asks to discuss reasons the finance manager proposed this. Question 6 asks to explain 3 services retailers provide to consumers. Question 7 asks about differences between preference shares and equity shares or limitations of retained earnings as a source of funds.

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Akshat Tulsyan
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114 views2 pages

Business Studies Assessment - Katol Road

The document contains a practice assessment test for Business Studies with 7 multiple choice and descriptive questions. Question 1 asks about characteristics of trade credit. Question 2 asks about factors affecting fixed capital requirements. Question 3 asks about how wholesalers provide financial assistance to manufacturers. Question 4 provides a case study and asks to identify 3 features of the retail outlet described. Question 5 provides a case study about a chemical company raising funds through debentures and asks to discuss reasons the finance manager proposed this. Question 6 asks to explain 3 services retailers provide to consumers. Question 7 asks about differences between preference shares and equity shares or limitations of retained earnings as a source of funds.

Uploaded by

Akshat Tulsyan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

CENTRE POINT SCHOOL, KATOL ROAD

PERIODIC ASSESSMENT 2
SUBJECT- BUSINESS STUDIES MARKS-15
DATE-17TH JANUARY TIME-45 MIN
General Instructions:
1. Answer to questions carrying 3 Marks may be from 50 to 75 words

1. Which of the following is not true with regard to trade credit? 1

a) It appears in the records of the buyer firm as “ Account payable’


b) It depends upon the financial strength of the seller.
c) Large amount of funds can be generated through Trade credit.
d) It depends upon the reputation of the buyer.

2. The fixed capital requirement of business is low if- 1

a) It plans to upgrade the technology


b) It plans to shift the business to a new location
c) The business is operated on a large scale
d) It wants to meet its current expenses.

3. How does the wholesaler provide financial assistance to the


manufacturers? 1

4. Manas owns a large scale retail outlet at a central location in Kanpur.


The outlet is divided into a number of sections and each section deals
in a particular variety of goods. There is a separate section for
toiletries, fruits and vegetables, groceries, electronics and clothing.
Explain three features of the identified retail outlet highlighted in the
given case. 3
5. Max Chemical ltd is a company engaged in the manufacturing of
chemicals. The company is planning to expand its business. For this, it
needs to raise funds Rs 500 crores. After analysing, Shivam, Finance
Manager of the company proposed to raise the funds through issue of
‘Debentures’. Shivam also gave number of reasons for his choice. After
listening to all the points put forward by Shivam, the Managing Director
of the company is fully satisfied and asked Shivam to go ahead with the
issue. Discuss the reasons which might have been given by Shivam,
which convinced the Managing Director to go for the issue of
Debentures.
3
6. Explain the three services of the Retailers to Consumers. 3

7. How are Preference shares different from Equity shares ? 3


OR
Retained earnings as a source of funds has a few limitations. Explain any
three such limitations.

*******

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