NextQ171

After doing her M. Com from 'Himachal Pradesh University of Shimla', Komal went back to her village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of women of her village, so she formed an organisation, the membership of which was open for all the women villagers on a voluntary basis by paying Rs.500 only which will be treated as their capital. Komal knew that the land of her village was suitable for the farming of medicinal plants. So, she motivated the members of her organisation for growing medicinal plants in their fields under the guidance and help of the local agricultural department. It was also decided that the organisation will purchase the produce of each member and sell the same to drug manufacturing companies at a very good price which was not possible for the members individually. The main objective of the organisation is to render services to its members rather than to earn profit.A computer training center for young boys and girls of the village was started under the guidance of Komal from the surplus of the profits.(a) Name the process that helped Komal in developing an idea into an opportunity (b) Identify the kind of organisation that was formed by Komal (c) State any two values which komal wanted to communicate to the society.

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Question 170

After passing his 12th class with entrepreneurship as an elective subject 'Guru' started his own business. He invested Rs.2,00,000 as capital which was given to him by his father. He obtained a loan of Rs.1,00,000 from his elder brother Ravi, who was working as an assistant manager in Bank of Baroda. In the first year he incurred a loss of Rs.50,000 and had to pay to his suppliers their outstanding bills. This created a financial problem for him and he had to take a loan of Rs. 1,00,000 from the Bank of Baroda on the personal guarantee of his brother. He started doing hard work, lowered the prices and informed his customers about the qualities of goods sold by him. Because of this the sales increased four times and he earned a net profit of Rs.75,000 in the second year.

(a) Identify the form of business organisation started by 'Guru'. (b) State any five features of such a form of business organisation.

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