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Shyam wanted to start a business of selling handicrafts by getting in touch wiht the craftsmen in the rural areas of Bengal. He wants to make a low investment in fixed Capital. Advise him in taking suitable decisions regarding the Nature of Business,Scale of operations and Financing Alternatives (in a developed financial market) that he needs to take for the purpose.

Radhika Ltd. Has good growth prospects . So it si planning to expand their business. For this the company needs addtional funds. The finance manger reports that the company is not in a positionto bear extra burden of paying any fixed inancial charges like intrest or divident. They do not want to bear any flotation costs even. Alos, the equity shareholders insists not to issue further shares as there is risk of dilution of control. Suggest and expalin the source of finance most suitable for Radhika Ltd.

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.

What approximate value will come in place of the question mark (?) in the following question? A and B started a business together in a partnership. B left the business after 8 months. At the end of year profit is Rs. 4000, out of which profit of B is Rs. 3000, the investment of B is how much percentage more than the investment of A?

After completing the course of Hotel Management Rahul plans to start his own Hotel, he plans to hire a team experts to give his guests a unique and unforgettable experience. Keeping in mind their budgets. Before starting the business he visited his home town to take blessings of his father. His father told him that success of business depends on how well finance is invested in assets and operations and how timely and economically finance are arranged from outside or from with in the business. He guided him that he should always spend time in identifying different available sources of finance and comparing them in terms of their costs and associated risks. The returns from investment should always exceed the cost of investment. In the above context financial (i) Identify the concept discussed above which has direct bearing on the financial health of a business. Outline the key objective of concept identified in part (i).