Comprehension
Rajat was studying in class X. He had to drop out from school as his family could not afford it. He had to take a job of a peon in an office to provide money for his family. He lost his job at the office as the bank interest rate had gone up and the office was finding it difficult to meet expenses. On his way home, he stopped at a snack stall to eat something. There he got the idea of opening his own snack stall. Rajat went to meet Mr. Om, who was known to his father and used to give finance to people in need. Mr. Om agreed to give finance to Rajat. Rajat took 2 lakhs from Mr. Om and purchased a stall for ₹80,000 and some utensils and goods for ₹20,000. He purchased vegetables, bread, oil, spices, etc. for ₹10,000, cups, plates, and disposable items for ₹5,000. He decided to make sandwiches and sell them for ₹250 each as the competition was high and he wanted customers to come to his stall. He named his food stall "Paras food stall."
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, two friends approached him and asked Rajat if he could help them. Rajat told them that he would manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, two friends approached him and asked Rajat if he could help them. Rajat told them that he would manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
Question: 1
Identify the type of investor Mr. Om is.
Identify the type of investor Mr. Om is.
Show Hint
Angel investors are typically individuals who provide financial backing to early-stage ventures, often in exchange for equity or debt.
Updated On: Apr 29, 2025
- Angel investor
- Venture capital
- Share holder
- Bank
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The Correct Option is A
Solution and Explanation
Mr. Om is an angel investor as he is providing finance to Rajat to set up his business in the early stage. Angel investors typically invest in small businesses or startups, often with high growth potential.
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Question: 2
Identify the net working capital needed by Rajat.
Identify the net working capital needed by Rajat.
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Net working capital is the difference between a company’s current assets and current liabilities. It measures a company’s operational efficiency and short-term financial health.
Updated On: Apr 29, 2025
- ₹15,000
- ₹6,000
- ₹11,000
- ₹21,000
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The Correct Option is B
Solution and Explanation
To calculate the net working capital, we subtract the current liabilities from the current assets. In this case, we consider Rajat's purchases for the stall and disposable items as assets, with an additional cost of ₹6,000 for increased demand.
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Question: 3
Identify the form of business organisation formed by Rajat.
Identify the form of business organisation formed by Rajat.
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A sole proprietorship is the simplest form of business, owned and managed by one person. It doesn't require complex legal processes or large investment to start.
Updated On: Apr 29, 2025
- Joint stock company
- Joint Hindu family business
- Sole proprietorship
- Partnership
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The Correct Option is C
Solution and Explanation
Based on the case study, Rajat is running his business alone, without forming a partnership or joint stock company. Therefore, the correct form of business is "Sole proprietorship," which means a business owned and managed by one individual.
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Question: 4
Calculate the ROI on the food stall opened by Rajat.
Calculate the ROI on the food stall opened by Rajat.
Show Hint
ROI is a performance measure used to evaluate the efficiency of an investment. Always ensure to include both profit and total investment to calculate ROI accurately.
Updated On: Apr 29, 2025
- 40%
- 30%
- 45%
- 47%
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The Correct Option is A
Solution and Explanation
To calculate the Return on Investment (ROI), we use the formula:
\[
ROI = \frac{\text{Profit}}{\text{Investment}} \times 100
\]
Here, the profit earned is ₹80,000, and the total investment is ₹80,000 (stall) + ₹20,000 (utensils and goods) + ₹10,000 (ingredients) + ₹5,000 (disposable items) = ₹1,15,000.
Thus,
\[
ROI = \frac{80,000}{1,15,000} \times 100 = 69.57%
\]
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Question: 5
Naming the food stall "Paras food stall" is a component of product marketing. Identify the component of product in the above statement.
Naming the food stall "Paras food stall" is a component of product marketing. Identify the component of product in the above statement.
Show Hint
Branding is a key element of product marketing. It involves the creation of a unique name, symbol, or design that identifies and differentiates a product from others in the market.
Updated On: Apr 29, 2025
- Branding
- Packaging
- Labelling
- Pricing
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The Correct Option is A
Solution and Explanation
The naming of the food stall "Paras food stall" is an example of branding, which refers to creating a unique identity for the product or service. In this case, the name helps differentiate Rajat’s snack stall from competitors, and it is part of the product's branding strategy.
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Question: 6
Identify the component of product mix that Rajat used for the convenience of customers who wanted to take food home.
Identify the component of product mix that Rajat used for the convenience of customers who wanted to take food home.
Show Hint
Packaging not only protects the product but also adds to the convenience and appeal of the product, especially when it’s being taken away or sold for consumption at a later time.
Updated On: Apr 29, 2025
- Branding
- Labelling
- Promotion
- Packaging
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The Correct Option is D
Solution and Explanation
In the case study, Rajat used boxes to package the sandwiches for customers who wanted to take the food home. This is an example of "Packaging," which is used to protect and make products convenient for customers to carry.
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Question: 7
Identify the type of franchise used by Rajat where he allowed his friends to distribute his products.
Identify the type of franchise used by Rajat where he allowed his friends to distribute his products.
Show Hint
A manufacturing franchise involves the franchiser producing the goods and the franchisee distributing or selling those goods.
Updated On: Apr 29, 2025
- Business franchise
- Manufacturing franchise
- Business format franchise
- Product franchise
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The Correct Option is B
Solution and Explanation
The franchise described here is a manufacturing franchise, where Rajat provides the product (sandwiches) to his friends, who are given the right to distribute them in different parts of the city. This type of franchise allows others to distribute products made by the franchiser.
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Question: 8
Rajat was studying in class X. He had to drop out from school as his family could not afford it. He had to take a job of a peon in an office to provide money for his family. He lost his job at the office as the bank interest rate had gone up and the office was finding it difficult to meet expenses. On his way home, he stopped at a snack stall to eat something. There he got the idea of opening his own snack stall. Rajat went to meet Mr. Om, who was known to his father and used to give finance to people in need. Mr. Om agreed to give finance to Rajat. Rajat took 2 lakhs from Mr. Om and purchased a stall for ₹80,000 and some utensils and goods for ₹20,000. He purchased vegetables, bread, oil, spices, etc. for ₹10,000, cups, plates, and disposable items for ₹5,000. He decided to make sandwiches and sell them for ₹250 each as the competition was high and he wanted customers to come to his stall. He named his food stall "Paras food stall."
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he would manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
“Rajat's friends were able to sell all the sandwiches as everyone knew about the sandwiches made by Rajat.”
Identify the advantage of franchising to the franchisee.
Rajat was studying in class X. He had to drop out from school as his family could not afford it. He had to take a job of a peon in an office to provide money for his family. He lost his job at the office as the bank interest rate had gone up and the office was finding it difficult to meet expenses. On his way home, he stopped at a snack stall to eat something. There he got the idea of opening his own snack stall. Rajat went to meet Mr. Om, who was known to his father and used to give finance to people in need. Mr. Om agreed to give finance to Rajat. Rajat took 2 lakhs from Mr. Om and purchased a stall for ₹80,000 and some utensils and goods for ₹20,000. He purchased vegetables, bread, oil, spices, etc. for ₹10,000, cups, plates, and disposable items for ₹5,000. He decided to make sandwiches and sell them for ₹250 each as the competition was high and he wanted customers to come to his stall. He named his food stall "Paras food stall."
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he would manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
“Rajat's friends were able to sell all the sandwiches as everyone knew about the sandwiches made by Rajat.” Identify the advantage of franchising to the franchisee.
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he would manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
“Rajat's friends were able to sell all the sandwiches as everyone knew about the sandwiches made by Rajat.” Identify the advantage of franchising to the franchisee.
Show Hint
In franchising, the franchisee benefits from selling a product or service with an established brand and market presence, which helps in gaining product acceptance quickly.
Updated On: Apr 29, 2025
- Capital requirement
- Knowledge of the market
- Product acceptance
- Management expertise
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The Correct Option is C
Solution and Explanation
The statement reflects that Rajat's friends were able to sell the sandwiches because everyone knew about the product. This suggests that the key advantage of franchising for the franchisee is product acceptance, as the product has already been proven and accepted in the market.
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Question: 9
Rajat was studying in class X. He had to drop out from school as his family could not afford it. He had to take a job of a peon in an office to provide money for his family. He lost his job at the office as the bank interest rate had gone up and the office was finding it difficult to meet expenses. On his way home, he stopped at a snack stall to eat something. There he got the idea of opening his own snack stall. Rajat went to meet Mr. Om, who was known to his father and used to give finance to people in need. Mr. Om agreed to give finance to Rajat. Rajat took 2 lakhs from Mr. Om and purchased a stall for ₹80,000 and some utensils and goods for ₹20,000. He purchased vegetables, bread, oil, spices, etc. for ₹10,000, cups, plates, and disposable items for ₹5,000. He decided to make sandwiches and sell them for ₹250 each as the competition was high and he wanted customers to come to his stall. He named his food stall "Paras food stall."
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he will manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
Identify the component of the business environment that was responsible for Rajat to lose his job.
Rajat was studying in class X. He had to drop out from school as his family could not afford it. He had to take a job of a peon in an office to provide money for his family. He lost his job at the office as the bank interest rate had gone up and the office was finding it difficult to meet expenses. On his way home, he stopped at a snack stall to eat something. There he got the idea of opening his own snack stall. Rajat went to meet Mr. Om, who was known to his father and used to give finance to people in need. Mr. Om agreed to give finance to Rajat. Rajat took 2 lakhs from Mr. Om and purchased a stall for ₹80,000 and some utensils and goods for ₹20,000. He purchased vegetables, bread, oil, spices, etc. for ₹10,000, cups, plates, and disposable items for ₹5,000. He decided to make sandwiches and sell them for ₹250 each as the competition was high and he wanted customers to come to his stall. He named his food stall "Paras food stall."
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he will manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
Identify the component of the business environment that was responsible for Rajat to lose his job.
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he will manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
Identify the component of the business environment that was responsible for Rajat to lose his job.
Show Hint
Economic factors such as interest rates, inflation, and unemployment rates can significantly affect businesses and employment.
Updated On: Apr 29, 2025
- Political
- Economic
- Social
- Technological
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The Correct Option is B
Solution and Explanation
Rajat lost his job at the office because the bank interest rate had gone up, which made it difficult for the office to meet expenses. This is an example of an economic factor in the business environment that impacted Rajat's job.
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Question: 10
Rajat was studying in class X. He had to drop out from school as his family could not afford it. He had to take a job of a peon in an office to provide money for his family. He lost his job at the office as the bank interest rate had gone up and the office was finding it difficult to meet expenses. On his way home, he stopped at a snack stall to eat something. There he got the idea of opening his own snack stall. Rajat went to meet Mr. Om, who was known to his father and used to give finance to people in need. Mr. Om agreed to give finance to Rajat. Rajat took 2 lakhs from Mr. Om and purchased a stall for ₹80,000 and some utensils and goods for ₹20,000. He purchased vegetables, bread, oil, spices, etc. for ₹10,000, cups, plates, and disposable items for ₹5,000. He decided to make sandwiches and sell them for ₹250 each as the competition was high and he wanted customers to come to his stall. He named his food stall "Paras food stall."
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he will manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
Identify the source of the idea field from where Rajat got the idea of opening a food stall.
Rajat was studying in class X. He had to drop out from school as his family could not afford it. He had to take a job of a peon in an office to provide money for his family. He lost his job at the office as the bank interest rate had gone up and the office was finding it difficult to meet expenses. On his way home, he stopped at a snack stall to eat something. There he got the idea of opening his own snack stall. Rajat went to meet Mr. Om, who was known to his father and used to give finance to people in need. Mr. Om agreed to give finance to Rajat. Rajat took 2 lakhs from Mr. Om and purchased a stall for ₹80,000 and some utensils and goods for ₹20,000. He purchased vegetables, bread, oil, spices, etc. for ₹10,000, cups, plates, and disposable items for ₹5,000. He decided to make sandwiches and sell them for ₹250 each as the competition was high and he wanted customers to come to his stall. He named his food stall "Paras food stall."
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he will manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
Identify the source of the idea field from where Rajat got the idea of opening a food stall.
In the disposable items, Paras also purchased some boxes so that customers who wanted to take the food home can be given in the boxes. This increased his cost by ₹6,000. By the end of the year, the demand of the sandwiches made by Rajat increased and earned a profit of ₹80,000 after paying taxes.
Due to the popularity of the sandwiches of Rajat, his two friends approached him and asked Rajat if he could help them. Rajat told them that he will manufacture the sandwiches and they would be given the right to distribute them in different parts of the city. The cost of production reduced as Rajat now had to produce in bulk. Rajat’s friends are also very happy as all the sandwiches got sold and everyone knew about the sandwiches made by Rajat.
Identify the source of the idea field from where Rajat got the idea of opening a food stall.
Show Hint
Creative efforts often lead to business ideas that can revolutionize industries. Rajat’s creative thinking allowed him to see the potential in the food stall business.
Updated On: Apr 29, 2025
- Natural resource
- Trading related
- Service related
- Creative efforts
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The Correct Option is D
Solution and Explanation
The idea of opening a food stall came from Rajat’s creative thinking, as he saw the opportunity to open a food stall and sell sandwiches, which was not directly related to any natural resource, trade, or service.
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