Evolution and Fundamentals of Business | Case Study Based Questions | Class 11 Business Studies #eduvictors

Evolution and Fundamentals of Business | Case Study Based Questions | Class 11 Business Studies

Case Study Based Question: 

The Cake Plaza specialises in delivering a variety of traditional cakes, designer cakes, dry cakes, cookies, and more, made to order using the finest ingredients available in a wide array of tastes, colours, designs, and themes. You can have a customised cake with your message delivered to your doorstep to celebrate any event, occasion, festival, or gathering. Josephine, the owner of The Cake Plaza, resides in Delhi. She wants to expand her business to other parts of the country, but lacks the necessary funds for that. She also hopes that people from other states will learn about her delicious cakes and cookies. However, she is concerned that her shop might catch fire, as happened with one of the neighbouring shops last week. 

Based on the information provided about The Cake Plaza, answer the following question: State any three business activities that Josephine will use to achieve her goal.

Answer: 

To achieve her business goals, Josephine (the owner of The Cake Plaza) can undertake the following three business activities:

Online Marketing, Advertisements & E-commerce Expansion

Josephine can leverage social media platforms (Instagram, Facebook, etc.) and food delivery apps (Zomato, Swiggy, etc.) to promote her cakes and cookies nationwide.

She can also create a website or an app for online orders, allowing customers from other states to place customised cake orders.

Franchising or Partnerships

Instead of opening new branches, she can adopt a franchise model or collaborate with local bakeries in other cities to sell her products under her brand name.

This approach reduces the need for heavy initial investment while expanding her market reach.

Insurance & Risk Management

To mitigate the fire risk (as she fears), Josephine should insure her shop under a business insurance policy that covers fire, theft, and other damages.

She can also invest in fire safety equipment (like extinguishers and smoke detectors) to safeguard her business.

These activities will help her expand her business reach, attract customers from other states, and protect her shop from potential risks.

Q2: Jyoti is a housewife. She sells old newspapers every month. Is it a business activity? Give reasons. 

Answer:  No, selling old newspapers every month is generally not considered a business activity.

Reasons:

1. Not the main occupation: Selling newspapers is a secondary activity to her household activities. 

2. No profit motive: While Jyoti may earn some money from selling the newspapers, the primary intention is not profit-making.

Question: Classify the following activities into economic and non-economic activities:

(a) Smita growing plants in her family garden.

(b) Doctor treating patients at his clinic

(c) Ajit’s Dadi attending ‘Satsang’

Answer:

(a) Smita growing plants in her family garden: Non-economic activity. Smita is growing plants for her own satisfaction and enjoyment, not for any monetary gain. There's no exchange of money or intent to sell the plants for profit.

(b) Doctor treating patients at his clinic: Economic activity. The doctor is providing a service (medical treatment) to patients and receiving payment in return. This activity is carried out with the primary objective of earning a livelihood.

(c) Ajit’s Dadi attending ‘Satsang’: Non-economic activity. Ajit's grandmother is attending a religious gathering for spiritual and personal reasons. There is no economic motive involved.

Question: Akshay is a teacher at RD Public School, Andaman and Nicobar. During the weekends, he teaches kids from the slum area free of charge. He also opened a bookstore in partnership with his neighbour, Kapil. Identify the human activities carried out by Akshay.

Answer: Akshay engages in both economic (paid teaching, business) and non-economic (free teaching) activities.

Question: Categorise the following as Business, Profession and Employment:

(a) A person selling vegetables in the weekly market

(b) The basic aim is to earn a livelihood in the form of a salary

(c) It involves the rendering of personalised expert services

Answer:

(a) A person selling vegetables in the weekly market

→ Business (Involves buying and selling goods for profit, no specialised degree required)

(b) The basic aim is to earn a livelihood in the form of a salary

→ Employment (Working for an employer in exchange for a fixed salary/wages)

(c) It involves the rendering of personalised expert services

→ Profession (Requires specialised knowledge, skills, and formal training, e.g., doctors, lawyers, CAs)

Question: Mrs. Kapoor has four children, each with a unique career.  Anika is a teacher at a private school, Rohan is a chef at a popular restaurant, Priya volunteers at an animal shelter, and Saurav is a musician who performs at paid concerts.

(a)  Identify whether each child is engaged in an economic or non-economic activity. Give reasons for your classification.

(b)  Explain the specific economic or non-economic activity each child is involved in.

Answer:

(a) Economic or Non-Economic Activities

Anika (Teacher): Economic activity. Anika works at a private school and receives a salary. Her primary motivation is to earn a living.

Rohan (Chef): Economic activity. Rohan works at a restaurant and is paid for his culinary services.  He is working to earn money.

Priya (Volunteer): Non-economic activity. Priya works at an animal shelter without receiving any payment. Her motivation is to help animals, driven by compassion and a sense of social responsibility.

Saurav (Musician): Economic activity. Saurav performs at concerts and is paid for his performances, which means he earns income.

(b) Types of Activities

Anika (Teacher) - economic activity through employment. 

Rohan (Chef) -  an economic activity in the form of employment. 

Priya (Volunteer) - non-economic activity - social service.  

Saurav (Musician) - economic activity - services or self-employment

👉See Also:

Ch1: Nature and Purpose of Business (MCQs)
Ch1: Characteristics of Business
Ch1: Business vs Profession vs Employment
Ch1: Nature and Purpose of Business - Classification Of Commerce
Ch1: Nature and Purpose of Business (MCQs-2)
Ch1: Occupational Hazards are Workplace Risks | Activity