Sameer intends to start his own business in_____ years. ( some/ a few / few/ a couple )

Mr Sandhu worked as a manager in a company manufacturing stationery items for 10 years. Later he thought of starting his own business as he acquired the skills and expertise in past years. He started his own venture. He divides the organisation into six major departments Production, Purchase, Marketing, Legal, Human resource and Finance. After a month, he called upon the meeting of all the department heads in his office and told and production marketing and finance department managers to be very vigilant as their departments are critical to the success of the business. Short comings in Purchase, Personnel or Legal department would not affect much the success of business. Therefore, Mr Sandhu determined deviation tolerance limits for the critical departments. 1. Identify the two functions of management referred above. 2. Describe the relevent concept of the indetified functions.

Identify cost and explicity cost in each of the individual cases. (i) An individual is both the owner and the manager of a shop taken on rent. (ii) A producer borrows money and opens a shop. The shop premise is owned by him. (iii) A producer invests his own savings in starting a business and employs a manager to look after it. (iv) A farmer takes a farm on rent and carries on farming with the help of family members. (v) A producer borrows money and starts a business. He himself looks after the business. (vi) A woman borrows money from a bank and starts a business in a building owned by her. She manages the business herself. (vii) A charatered accountant starts accounting services in the office owned by him and by investing his own savings. He employs assistance for this purpose. (viii) A person starts a taxi service. The taxi is financed by a bank. He himself drives the taxi. He also pays annual license fees to goverment. (ix) A person starts a goods transport business. He purchases a goods carrier using partly this own savings and partly borrows money. He drives the carrier himself.

Rizul Bhattacharya after leaving his job wanted to start a Private Limited Company wiht his son. His son was keen that the company may start manufacturing of Mobile-phones with some unique featurs. Rizal Bhattacharya felt that the mobile-phones are prone to quick obsolencence and a heavy fixed capital investment would be required regularly in this business.Therefore, he convinced his son to start a furniture business. Identify the factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile -phones.

Sir Ran started a confectionery business few years back. Due to continuous losses in business he decided to close the business. He owes Rs. 4 lacs to supplier firm who he had been taking goods on credit. His business funds are insufficient to repay the debis. Can supplier recover the funds from the personal assets of Sir Ram as his business assets are insufficient to rapay the debts, why or why not.