CBSE Class 11 Business Studies Worksheet Set M Solved

VALUE POINTS

1. (d) USA 

2. Social responsibility towards various interest groups

(1) Towards shareholders (3) Towards consumers
(2) Towards employees (4) Towards Govt.& Community
(Any 3 points. 1 mark each with explanation)

3. Any 3 merits of trade credit

(1) Convenient and continuous source of funds
(2) Readily available for business
(3) Increases the sales of business
(4) Does not create any charge on assets.

4. Discuss any 3 merits of public deposits

(1) The procedure for obtaining public deposits is simple
(2) Cost is lower than cost of borrowings from banks
(3) Do not usually create any charge on assets
(4) Do not dilute the power of shareholders

5. The portion of profits which is kept aside for the future purpose is called as retained earnings.
Any 2 merits

(1) Permanent source of capital
(2) No explicit and floatation cost
(3) Greater operational freedom
(4) Can absorb unexpected losses
(5) Increase the market price of equity shares

Any 2 demerits
(1) Dissatisfaction among shareholders
(2) Uncertain source of funds
(3) May lead to sub-optimal use of funds

6. Arguments in favour of social responsibility

(1) Justification for existence and growth
(2) Long-term interest of the firm
(3) Avoidance of Govt. regulation
(4) Maintenance of society
(5) Availability of resources with business
(6) Converting problems into opportunities
(7) Better environment for doing business
(8) Holding business responsible for social problems
(Any 5 points with explanation)

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