Comprehension

Vanaja and vasula are twin sisters who hail from the state of Kerala. They observed that children from her village were suffering from deformities due to prolonged use of pesticide contaminated river water and endosulphine spayed fruits and vegetables. Taking this into cognizance they both plan to start a firm which would promote organic farming in their village. In the beginning, the firm would be an association of two persons who would carry on the business as co-owners, would share profits and losses and would have unlimited liability. In order to avoid conflicts in future they would have a written agreement which will include all the classes relating to authority and responsibility of members, voting rights and roles and payment of members. The sisters will act as principal and agent for each other and for the firm. They discussed this proposal with the Block Development Officer (BDO). He was very appreciative of their efforts and suggested them to use a catchy slogan which would act as a powerful message to communicate to their cause. Taking clue from the suggestions made by the BDO, the sisters prepared a document which encompassed the relevant external and internal elements involved in starting a new venture. They approached BHIMA capitals Ltd with their proposal and presented a three-minute executive summary to awaken interest of potential funders. Quite impressed with the idea, the professional investors agreed to provide Private equity seed capital in return for minority shareholding.
Read the case study and answer the following questions.

Question: 1

“They observed that children from her village were suffering from deformities due to prolonged use of pesticide contaminated river water and endosulphine spayed fruits and vegetables.”
Identify the element of the PESTEL model referred in above line

Updated On: Oct 18, 2024
  • Political
  • Economical
  • Legal
  • Ecological
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The Correct Option is D

Solution and Explanation

The correct option is (D) :Ecological.
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Question: 2

Identify the form of business organization that Vanaja and valsala plan to start.

Updated On: Oct 18, 2024
  • Sole proprietorship
  • Partnership
  • Private company
  • Public company
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The Correct Option is B

Solution and Explanation

The correct option is (B) :Partnership.
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Question: 3

Identify the agreement prepared by Vanaja and Valsala which may be referred to during conflicts among Vanaja and Valsala.

Updated On: Oct 18, 2024
  • Rent agreement
  • Partnership Deed
  • Dealership Agreement
  • Franchise Agreement
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The Correct Option is B

Solution and Explanation

The correct option is (B) :Partnership Deed.
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Question: 4

“The sisters will act as principal and agent for each other and for the firm”.
Identify the essential feature of the firm as mentioned in the line above.

Updated On: Oct 18, 2024
  • Profit sharing
  • Utmost good faith
  • Implied authority
  • Mutual agency
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The Correct Option is D

Solution and Explanation

The correct option is (D) :Mutual agency.
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Question: 5

The Block Development Officer (BDO) suggested them to use a catchy and attractive name for their firm to give them a unique identity and differentiate from competitors.
Identify the concept reffered here.

Updated On: Oct 18, 2024
  • Brand mark
  • Logo
  • Brand name
  • Tagline
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The Correct Option is C

Solution and Explanation

The correct option is (C) :Brand name.
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