case studies for class 11 business studies chapter 3

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What Is a Case Study?

When you’re performing research as part of your job or for a school assignment, you’ll probably come across case studies that help you to learn more about the topic at hand. But what is a case study and why are they helpful? Read on to learn all about case studies.

Deep Dive into a Topic

At face value, a case study is a deep dive into a topic. Case studies can be found in many fields, particularly across the social sciences and medicine. When you conduct a case study, you create a body of research based on an inquiry and related data from analysis of a group, individual or controlled research environment.

As a researcher, you can benefit from the analysis of case studies similar to inquiries you’re currently studying. Researchers often rely on case studies to answer questions that basic information and standard diagnostics cannot address.

Study a Pattern

One of the main objectives of a case study is to find a pattern that answers whatever the initial inquiry seeks to find. This might be a question about why college students are prone to certain eating habits or what mental health problems afflict house fire survivors. The researcher then collects data, either through observation or data research, and starts connecting the dots to find underlying behaviors or impacts of the sample group’s behavior.

Gather Evidence

During the study period, the researcher gathers evidence to back the observed patterns and future claims that’ll be derived from the data. Since case studies are usually presented in the professional environment, it’s not enough to simply have a theory and observational notes to back up a claim. Instead, the researcher must provide evidence to support the body of study and the resulting conclusions.

Present Findings

As the study progresses, the researcher develops a solid case to present to peers or a governing body. Case study presentation is important because it legitimizes the body of research and opens the findings to a broader analysis that may end up drawing a conclusion that’s more true to the data than what one or two researchers might establish. The presentation might be formal or casual, depending on the case study itself.

Draw Conclusions

Once the body of research is established, it’s time to draw conclusions from the case study. As with all social sciences studies, conclusions from one researcher shouldn’t necessarily be taken as gospel, but they’re helpful for advancing the body of knowledge in a given field. For that purpose, they’re an invaluable way of gathering new material and presenting ideas that others in the field can learn from and expand upon.

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Complete Solutions to Case Study of chapter PRIVATE , PUBLIC AND GLOBAL ENTERPRISES of Class 11 book with complete answers and questions

Indian Railway' is a part of Railway Ministry . It is organised and controlled by Railway Ministry . The finances are allocated from government treasury and what ever revenue it earns is deposited to government treasury only . It is treated as a part of government and even the appointment , recruitment and selection of employees is done in the same way as that of civil servant. (a) Name the type of public sector enterprise railway is considered as . (b) What is the status of employees working in railways? (c) How does it get its finance? (d) What does it do with its revenue?

With Enactment of LIC Act , 1956 , an autonomous body , Life Insurance Corporation of India was formed . The act defines its powers , duties and functions . It has a separate legal entity . It is fully owned by government . It has independent finacial policy and can raise funds by borrowing from public and government . however it is not subject to any budgetary accounting or audit control like Railways . It 's annual report is presented in parliament every year. (a) Name the type of public sector enterprise referred in above case. (b) Name the act under which it is formed. ( c) Name any other statutory corporation. (d) State two features of statutory corporation mentioned above.

Gas authority of India Ltd . (GAIL) is carrying on various projects of energy and power . Majority of its shares are held by government of India . It is registered under Companies Act , 1956 and enjoy all the characteristics of a company . The board of directors are appointed by the government . The Board and shareholders are responsible for the efficient working of the company . The company prepares its annual report and submit to appropriate authorities. (a) Name the type of public sector enterprise referred in above para. (b) Government dusy shares in whose name ? (c ) Where does goverment companies submit their reports?

Sony Ltd , is a leader in electronics . It is registered in a company and has its business operations in many countries of world . Its headquarter is in Japan (Tokyo). To manage its branshes and subsidiaries in different countries , the company employs trained and professional managers . they always make use of latest technology to remain leader in electronics. (a) Name the type of enterprise mentioned in above case. (b) State where the headquarter of sony is located. (c ) State two benefits of Sony mentioned in above para.

In 2005 Mahindra & Mahindra had an agreement with Renault ,a French car manufacturing company to produce and commercialize Logan . It is a `51 : 49` partnership between Mahindra & Mahindra and Renault . The Loagan plant at Nasik has a capacity to produce 50, 000 units per year . the main aim of the two companies t is to produce no - frills Loagan car with classifying features at an aggressive price & launch them exclusively for Indian market . Renault wanted to increase the global car sales by 800, 000 by year 2009 & they believed that this figure could be a achieved by investing in Indian market . What kind of arrangement is between the two companies? Define it .

To overcome the difficulties faced by public in transport system , the government of India started the METRO project in which the government involved private sector participation to get the benefits of efficiency of private sector . The project was great success as lacs of people are enjoying the metro service to move from one place to other. (a) State the type of enterprise mentioned in above last. (b) Name the 'PPP' providing metro service in Delhi. ( c) Give any two features of PPP.

Case Study questions and complete solutions for chapter PRIVATE , PUBLIC AND GLOBAL ENTERPRISES of SHREE RADHEY PUBLICATION BUSINESS STUDIES (HINGLISH) of Class 11

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• Important Questions for CBSE Class 11 Business Studies Chapter 3 - Private, Public and Global Enterprises

CBSE Class 11 Business Studies Chapter-3 Important Questions - Free PDF Download

Important Questions in Chapter 3 - Private, Public, and Global Enterprises are designed especially for the students of CBSE Class 11. In this study material, all the important questions and answers of Chapter 3 are available. They have been framed in accordance with the latest syllabus and guidelines of CBSE by the subject experts of business studies. Along with the questions, students will find accurately solved well structured answers to enable them to cater such questions in the exam.

The students are suggested to download the free PDF of such questions and answers in order to retain it till the day of the exam.

CBSE Class 11 Business Studies Chapter-3 Important Questions - A Special Feature

In our curated important questions of the Chapter Private, Public, and Global Enterprises, the students can find a special feature - A free PDF to download!

The students can have access to the free PDF of important questions and answers at no extra costs. 

Important Questions for CBSE Class 11 - Private, Public, and Global Enterprises (Chapter 3): Important Topics Covered in the Chapter

Let us have a look at the important topic covered in the chapter Private, Public, and Global Enterprises:

Major Objectives of the Public Enterprises

Difference between Public and Private Enterprises

Features of Global Enterprises

Foreign Collaboration

Disinvestment of Shares

Departmental Undertaking

Statutory Corporations

Government Company

Different forms of Public Enterprises

Important Questions of Private, Public, and Global Enterprises (Chapter 3) - How Will It Help a CBSE Class 11 Student?

Important questions of Private, Public, and Global Enterprises (Chapter 3) will help a CBSE Class 11 Student in numerous ways, such as those listed below.

These study materials can serve as an important resource to know all the important questions and answers in the chapter.

The questions are prepared from NCERT solutions, and keeping in mind the types of questions asked in CBSE. Thus, a student can understand what are the types of questions that can be asked from the chapter. 

The students will be aware of the important topic coverage from the chapter and thus study smartly. 

The students will also have a brief idea on how questions should be answered in the CBSE Class 11 examination.

The questions are inclusive of the NCERT and previous years questions and thus it is a full fledged effective study of Chapter 3. 

This study material can be also used as a revision material before the examination. 

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Important Questions for CBSE Class 11 - Free PDF Download  

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The students are suggested to go through the important questions and answers so that they can have a total understanding of the chapter and can prepare for their exam thoroughly. They are also advised to download the free PDF and utilise the same for their own benefit. 

FAQs on Important Questions for CBSE Class 11 Business Studies Chapter 3 - Private, Public and Global Enterprises

1. What is Public Enterprise in CBSE Class 11 Chapter 3 Private, Public, and Global Enterprises?

Public Enterprise can be defined as a business organisation that is wholly or partially owned by the state or central government. The public enterprises are under the control of the government in order to have a monopoly on some products and services. This method is adopted in the interest of the public. 

2. In CBSE Class 11 Chapter 3 Private, Public, and Global Enterprises, What are the three types of Public Sector Organisations?

The three types of Public Sector Organisations are as follows:

Departmental undertakings

Public corporations/statutory corporations

Government company

3 . What are Global Enterprises in CBSE Class 11 Chapter 3 Private, Public, and Global Enterprises?

A company that has businesses all over the world is known as Global Enterprises.

CBSE Class 11 Business Studies Important Questions

Cbse study materials.

Monday, 12 September 2016

Business studies case studies class 11; chapters 3,4 and 5, 14 comments:.

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Class 11th Business Studies - Private, Public and Global Enterprises Case Study Questions and Answers 2022 - 2023

Class 11th Business Studies - Private, Public and Global Enterprises Case Study Questions and Answers 2022 - 2023 Study Materials Sep-09 , 2022

QB365 provides a detailed and simple solution for every Possible Case Study Questions in Class 11 Business Studies Subject - Private, Public and Global Enterprises, CBSE. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.

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Private, public and global enterprises case study questions with answer key.

Final Semester - June 2015

There is an organization in most traditional form of public sector enterprises which are established by the departments of the ministry and are considered part or an extension of ministry itself. It is not autonomous or independent legal institution. It acts through the government. (a) Which type of organization is being referred to in above lines? (b) Explain any two merits of this organization? (c) Explain any two demerits of this organization?

In an organization, there are 51% shares are owned by central government. It has a separate legal entity and it is established under the Indian Companies Act, 2013 and is registered and governed by the provisions of Indian Companies Act, 2013. It is established for purely business purposes and compete with the companies in private sector in true spirit. (a) Identify the form of organization being referred to in above lines. (b) Explain any two merits of this form of organization. (c) Explain any two demerits of this form of organization. (d) Give two examples of this form of organization.

It is an organization which is a public enterprise. It came into existence by a special Act of the parliament. Its powers and functions, rules and regulations governing its employees and its relationship with government departments are defined by the ActJ statute. It is a corporate body created by the legislature with defined powers and functions and is financially independent. It has a clear control over a particular type of commercial activity or a specified area. It has a separate legal entity, i.e. in the eyes of law, it is a different person. (a) Identify the form of organization being referred to in above lines. (b) Explain any two merits of this form of organization. (c) Explain any two demerits of this form of organization. (d) Give two examples of this form of organization.

Anjana and Babita are best friends. Both of them are commerce students. Anjana tells Babita that all government undertakings have common features and all organizations under Public Sector enjoys same merits and demerits. Babita tells Anjana that it is not true. There are many forms of Public Sector undertaking and each form has its own merits and demerits. (a) Who of the two is right? (b) Name different forms of organizations in public sector. (c) Give three points of difference in these forms of organizations.

Public sector has a concern for social welfare and private sector has an advantage of innovation and efficiency. Private sector is crazy for profit and public sector is lacking efficiency. In this situation, it is really a problem which form of organization is suitable. (a) Is there any form of organization which combines benefits of both? Identify and name it. (b) Give two merits of this type of organization (c) Give two demerits of this type of organization.

Sanjay has just completed his MBA. His father is a businessman. He suggests Sanjay also do his own business. But he claims that starting and operating a business in his age was different from now. These days there is stiff competition and consumer is the king in the market. Many other aspects of business have also changed. His father claims that things have changed but they had different kind of challenges like too many government intervention and paper formalities, lack of technology, non-availability of infrastructural facilities etc. But running a business was a challenge and still is a challenge. (a) In the light of above discussion, which era do you think Sanjay and his father belonging to? (b) How has business environment changed in these two eras?

In India, many multinational companies are operative but majority of them are producing goods and services for richer section. They are least bothered for weaker section of the society. In many cases they are producing goods like pedigree in a country where 26 million human beings sleep without food, resources are being allocated for production of dog food. Therefore, it seems that production should be given in the hands of Indian companies which understand Indian priorities and allocate resources accordingly. In the light of above facts, discuss merits and demerits of multinational companies.

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Important Questions for CBSE Class 11 Business Studies Chapter 3 – Private, Public and Global Enterprises

Home > CBSE > Important Questions for CBSE Class 11 Business Studies Chapter 3 – Private, Public and Global Enterprises

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Important Questions Class 11 Business Studies Chapter 3 – Private, Public, and Global Enterprises

Business studies teaches people how to work together to achieve specific creative and productive goals, generally to make money. Business studies is a vast field that may lead to various job opportunities. The third chapter in the Class 11 Business studies book is Private, Public and Global Enterprises. It teaches about different enterprises. This chapter covers concepts such as business characteristics, different types of businesses, the changing role of the public sector, features of global enterprises, benefits of joint ventures and more. It carries significant weightage in the Business Studies syllabus. Students can easily access all this and more on the Extramarks website.

Business Studies is one such subject that requires a lot of reading and revising. At Extramarks, we understand the importance of solving questions. Hence, Extramarks experts have gathered them from various sources, such as the NCERT Textbook, NCERT Exemplar, other reference books, past years’ exam papers and so on. Our Business Studies academicians have developed stepwise solutions to help students comprehend each chapter in a better way. Students can register today with Extramarks and access Important Questions of Chapter 3 Business Studies Class 11 .

Apart from Chapter 3 Class 11 Business Studies Important Questions, materials like NCERT Solutions, CBSE revision note s, past years’ question papers, and NCERT books can be easily found on the Extramarks’ website.

Get Access to CBSE Class 11 Business Studies Important Questions 2022-23 with Solutions

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Business Studies Class 11 Chapter 3 Important Questions and Answers

Extramarks’ subject experts have developed an entire list of Business Studies Class 11 Chapter 3 Important Questions from various sources. The questions comprise a wide variety of topics including characteristics of the business, features of different types of business, the changing role of the public sector, features of global enterprises, benefits of joint ventures and more. These questions and solutions help students to comprehend private, public and global Enterprises easily.

Mentioned below are a few Important Questions from Class 11 Business Studies Chapter 3 and their solutions:

Q1. Why is the government company form of organisation preferred to other types in the public sector?

Answer. A federal or state government must possess at least 51 per cent of a government enterprise. This business form was created under the Indian Companies Act of 1956.

The arguments for choosing the government-company form over other public-sector models are as follows:

• A government corporation has total autonomy in all organisational operations and decision-making procedures.
• It is not exposed to undue intrusion by the appropriate department in its operations.
• It is distinct from the government in that a government corporation is not the same as the government.
• It provides economic goods and services while also adhering to ethical marketing practices.

Q2. Explain the concept of the public sector and private sector.

Answer. The Private sector: Businesses owned by one person or a group make up the private sector. A private sector business exists solely to make a profit. The private sector includes a wide range of organisations, including:

• Company (LLP, LLC)
• Sole proprietorship
• Cooperative societies
• Partnership
• Joint Hindu family

Public sector: The public sector comprises businesses that the government partially or entirely controls. The government may own a 51 per cent controlling interest in the company. These organisations might have been created due to a particular act of the Parliament. The government contributes to the country’s economic activity through working in the public sector.

Q3. Mention the many types of businesses that operate in multiple nations.

Answer. Multinational corporations (MNCs) do business in more than one country . On the other hand, such firms have their headquarters in a single nation, where they conduct all of their principal commercial operations—for example, Capgemini, Amazon and others.

Q4. What was the role of the public sector before 1991?

Answer. Before 1991, the public sector played the following roles:

• Maintaining the regional balance: During the 1960s and 1970s, India’s regional development disparities were severe. Some regions of the nation were far more developed than others. Regional disparities inhibited the country’s growth and development. Public sector enterprises (PSEs) were founded in backward and rural areas to promote regional balance. These PSEs not only provided jobs but also helped the expansion of supporting industries like banking and transportation in these areas.
• Import substitutions and exports: Self-sufficiency was one of the primary goals of India’s economic strategy. The idea was to minimise imports while simultaneously growing exports. PSEs was founded as a result to produce heavy machinery and engineering products in the nation, restricting imports. PSEs like the Metals and Minerals Trading Corporation of India (MMITC) and the State Trading Corporation (STC) were established simultaneously to promote exports.
• Infrastructural development: For industrial development, communication, transportation, energy supply and financial infrastructure are all required. Because they lacked the skilled personnel and financial means to establish heavy industries fast, as the economy expected, the private sector showed little interest in investing in or growing them in any way. As a result, only the government could raise the money required. As a result, this industry has been responsible for building infrastructure.
• Economies of scale: Economies of scale benefit the natural gas and petroleum industries, for example (benefits derived from them are more significant when operated on a large scale). Because these large-scale industries needed significant capital expenditures, the private sector was not large enough to operate in the years after independence. The functioning of these enterprises on a smaller scale was not an option since it would have resulted in losses. Due to this, people compelled the government to establish and operate these firms.
• Keep an eye on the concentration of economic power: The public sector regulates the private sector. Only a few industrial businesses were willing to invest in heavy industries due to the concentration of wealth in a few hands in the private sector. As a result, there are income disparities. As a result, the government can develop enormous firms that need significant investments, and the money and benefits generated are distributed to many employees and workers.

Q5. What exactly do you mean by “Disinvestment of Shares”?

Answer. The disinvestment of government shareholdings in a small number of public firms has been a significant element of India’s privatisation drive. This initiative aims to provide a non-inflationary source of funding for the government.

The programme began in 1991-92 and lasted until 1995-96, when the government disinvested a portion of its stock in 40 public sector firms, raising Rs. 10,915 crore via several rounds of disinvestment. Financial institutions, mutual funds, private sector firms and the general public offered shares.

In August 1996, the Union Government established the Disinvestment Commission to advise it on the disinvestment policy for public sector firms. For disinvestment recommendations, the government submitted 40 public sector companies to the Commission. The government is now making efforts to implement the Disinvestment Commission’s findings.

Bids are requested for the sale of shares in selected state firms to guarantee openness in the Disinvestment programme and the shares are sold to the highest bidder. The government raised Rs. 1,869 crores from public-sector disinvestment in 2000-01, compared to Rs. 1,829 crores in 1999-2000 and Rs. 5,371 crores in 1998-99. The disinvestment objective was set at Rs for 2002-03. 0 crores.

Q6. State the various types of organisations in the private sector?

Answer. The private sector comprises businesses owned by one person or a group. The private sector’s principal purpose is profitability. Individual investments or shareholder contributions raise funds.

The majority of it is made up of:

• Company: A company is a legal entity with its legal entity and common seal that exists exclusively in the eyes of the law. It has perpetual succession and its legal entity, and a common seal. There are two types of companies: private and public.
• Multinational corporations: Multinational firms operate in one or more nations in addition to their home country. For example, Google..
• Sole proprietorship: A single individual owns the whole firm in this form of business. S/He manages, controls and carries out all the company’s functions and risks.
• Joint Hindu family: A Hindu joint Family owns and operates this firm, governed by Hindu Law.
• Partnership: A partnership is a group of two or more individuals who agree to work together to manage a business, share earnings, and share risks.

Q7. What is a Departmental Undertaking and what does it imply? Mention the benefits and drawbacks.

Answer: It functions as a government ministry or department. The budgets of these departments are presented to the Parliament in the same way as other ministries. It may be seen in the Indian Railways and Post and Telegraph departments. Either the federal government or a state government owns and controls departmental entities.

Benefits of Departmental undertaking are:

• Proper management: Qualified government employees oversee these businesses. Their job is very methodical and these businesses are appropriately overseen and handled. Such a detailed and methodical process of management and supervision keeps all super government officials very alert to their job.
• Service Motive: These businesses were created to provide a service. They prioritise the public good and social welfare. These initiatives also assist in lowering the tax burden on the general populace.
• National Importance: These departmental organisations carry out activities of national significance. Due to stringent budgeting, accounting and auditing, the potential of misusing public funds has been reduced.
• Secrecy: These groups can keep their identities hidden. Since they are under the government’s jurisdiction, based on public interest, the government can avoid disclosing facts.

Drawbacks of Departmental undertaking are:

• Political evils: Every major decision in the departmental organisation is motivated by political considerations. It is handled and overseen by the minister, a political party representative. The minister is responsible for his party’s interests.
• Lack of competition: Departmental organisations often have monopolistic status. They are inept due to a lack of competition. There is no motivation for hard labour and efficiency when there is no rivalry or monetary motive. There isn’t much of a correlation between pay and performance.
• Least profit-making business: The government owns and controls departmental organisations, making them the least profitable venture. It was formed to provide a service. Hence, it is not a high-profit venture.
• Red tape: Employees follow the trodden path due to red tape. They are uninterested in the project. They are irresponsible and just concerned about their pay. Officers are concerned about their reputation and respect. Due to bureaucratic procedures and political factors, decisions are frequently delayed.
• Shortage of competent workers: Government personnel are inefficient in commercial matters due to a lack of skilled professionals. They have considerable administrative experience but not enough to supervise the  activities of the enterprise. Competent personnel are not hired since promotion to a higher level is predicated on seniority.

Q8. Describe the Industrial policy of 1991 for the public sector.

Answer. The Industrial Policy of 1991 resulted in a series of reforms for the public sector:

• Public Sector Disinvestment: This procedure entailed selling a portion of a company’s equity or controlling shares to the general public and private sectors. The goal of such a move was to encourage private businesses and the general public to participate in public enterprise ownership.
• Dereservation: In 1991, just eight industries were reserved for the public sector, including guns and ammunition, defence, atomic energy, mining and railroads. The private sector was allowed to indulge in all other areas.
• Policy dealing with sick units: This policy primarily dealt with reorganising or closing sick public sector units. The Board of Industrial and Financial Reconstruction (BIFR) was tasked with determining the units that the government should focus on restructuring and those that should be closed. The government established the National Renewal Fund (NRF) to assist in retraining or redeploying the workforce retrenched from a sick unit and providing compensation to employees seeking voluntary retirement.
• Memorandum of Understanding: This procedure gave public sector units more autonomy while also holding them accountable for their results. The public sector unit and the linked ministries signed a Memorandum of Understanding. The public sector units were given explicit objectives and complete operational autonomy to meet those objectives.

Q9. Briefly define the word “foreign collaboration.”

Answer. Foreign cooperation refers to businesses that have foreign units as equity partners. It is a joint venture between Indians and foreigners owned, managed and controlled together. These businesses benefit from the country’s and the world’s tremendous resources. These businesses bring together two or more countries’ financial, administrative and technical resources.

The profit is split (among the Indian owner and the foreign partner). The government has recently liberalised its policies on foreign investment in Indian  businesses. According to the New Industrial Policy, direct foreign investment up to 51 per cent ownership in high priority sectors would be approved in 1999, and foreign technology agreements in recognised high priority industries will be granted automatic authorisation.

Q10. How does the government maintain a regional balance in the country?

Answer. The government maintains regional balance in the country in the following ways:

• The Indian government has built huge steel mills in rural regions to develop these areas and provide jobs for those living there.
• Many other sectors like steel factories have been established to give work possibilities.
• The growth of industries resulted in the development of other related sectors, all of which contributed to the country’s wealth.
• Setting up industries directly influenced the region’s growth, which resulted in better roads, infrastructure development, bridges and rail connectivity, linking all regions of India.

Q11. Define multinational corporations and their impact on a country’s economic growth.

Answer. A multinational corporation is a company with its headquarters in one country and its activities in many others. This suggests that this sort of company will do business in various nations. An MNC has its registered office in one nation (referred to as the “home country”) and conducts business in several other countries (called host countries).

A global firm controls manufacturing and marketing operations in many countries. Coca-Cola, for example, is a firm based in the United States with manufacturing and marketing activities in several nations worldwide.

Multinational corporations can benefit the host country in the following ways:

• MNCs establish facilities for the manufacture and distribution of commodities, resulting in the creation of jobs in the host nation. Excess loan pay ranges and career growth options are available to managers, technical, and other employees at multinational.
• The technology in emerging nations is outdated and outmoded. MNCs can serve as conduits for transferring advanced technologies to underdeveloped countries. Developing countries benefit from advanced technical know-how, better skills, and consulting to enhance product quality and save costs.
• MNCs can help emerging economies obtain money from industrialised nations, as they face a capital shortfall necessary for fast industrialisation. They make it easier to move money from places where it is plentiful to those where it is rare. As a result, MNCs can aid in increasing investment, and as a result, the host country’s growth rate. Since its liberalisation, India has drawn billions of dollars in global investment.
• Multinational corporations (MNCs) boost competition and break up domestic monopolies. Inefficient businesses are pushed to either improve or exit the market. Following liberalisation and increased technology, many Indian enterprises now compete with multinationals.
• MNCs assist in the exploitation of idle resources of the host nation, resulting in revenue generation.
• MNCs use professional management and cutting-edge management practices to spark a managerial revolution in the host nations. As a result, the host nations can foster a professional management culture. Management approaches such as MBO and corporate planning help multinationals establish a knowledge base.
• MNCs make it easier for the host country’s economy to integrate with the global market. In the host country, they promote international brotherhood and cultural interactions.
• MNCs can assist domestic enterprises in growing by supplying them with materials, components, and other items. Several auxiliary entities have evolved to give support to MNCs throughout time.
• MNCs deliver high-quality items to the host nation’s people due to their superior technology. This contributes to a higher level of living for them.

Q12. Can the public sector companies compete with the private sector in terms of profits and efficiency? Give reasons for your answer.

Answer. It is challenging for public sector enterprises to compete with the private sector in terms of earnings and efficiency due to the following factors:

• Differences in Ownership: The government is the sole or principal stakeholder in public-sector companies. As a result, the government controls the management and administration of these businesses, which may or may not execute economically sound policies due to political considerations.
• The Difference in Objective: A private company’s primary purpose is to generate profit, but a public company’s primary goal is to offer social welfare. Hence, they can’t be entirely profit-driven.
• Operational Differences: The private sector works in all areas with a decent return on investment, whereas the public sector is mainly involved in the low-returning primary and public utility sectors.
• Differences in Management: Public-sector businesses are run and managed by government officials who may or may not have had professional training, whereas private-sector businesses are managed and run by professionals. This leads to better efficiency in the private sector.

Q13. Mention the principal features/characteristics of global corporations briefly.

Answer. Global Corporation’s Characteristics: The following are the key characteristics of most global corporations:

• MNCs are massive, with billions of dollars in assets and sales, creating significant profits from their activities. IBM’s physical assets, for example, are valued at roughly $8 billion. The sales turnover of some  international firms exceeds the gross domestic product of numerous developing nations.
• An MNC’s headquarters are located in the home nation to maintain control over its subsidiaries and affiliates. The parent corporation’s policy framework governs the local administration of branches and subsidiaries. Because the parent firm owns 40 per cent to 100 percent of the ownership in the subsidiary company, this is conceivable.
• An MNC’s international operations are managed by a parent business based in the home country. It operates through a network of branches, subsidiaries, and affiliates throughout the nations where it operates. Production, marketing and other operations are dispersed over many nations to get the economies of local operations.
• A global firm promotes a multilateral resource transfer. Technical know-how, machinery, equipment, raw materials, management knowledge and other items are transferred as a “package.”
• Many multinational firms enjoy oligopolistic power. They have a monopolistic position in the market. An MNC may amass enormous economic power by merging with and acquiring other businesses. Because of this, it has an oligopolistic nature and a strong position in the market. Hindustan Lever Limited, for example bought Tata Oil Mills to expand its market share.
• Because of their significant resources and better marketing skills, MNCs have access to international markets. As a result, multinational corporations (MNCs) can market their products in a variety of nations throughout the world.
• Professional talents, specialised knowledge, and training are used in these businesses. These executives have specific knowledge and experience in finance, marketing and human resources.

Q14. Why are global enterprises considered superior to other business organisations?

Answer. Multinational Companies are thought to be superior to other businesses since they have:

• Product innovation: Multinational corporations have fine-tuned their research and development centres for new product development. This allows them to maintain their competitive edge and large consumer base.
• Massive Financial Resources: MNCs have massive capital resources since they can raise funds from all around the world. They may borrow money from international banks, and many investors are willing to put their money into them in exchange for huge returns due to their goodwill.
• International Collaborations: Multinational corporations (MNCs) usually enter the market with the help of local private companies. This is primarily due to legislative restrictions and a desire to capitalise on the Indian firm’s brand reputation.
• Market Expansion: Their business and activities expand beyond their nations’ borders. They boost their global image and expand their market region, helping them position themselves as global brands.
• Centralised control: MNCs have a headquarters in their home country that oversees the company’s branches and subsidiaries. However, this influence is limited to the parent company’s broad policy framework. Regular operations are not affected by any delays or disruptions.
• Marketing Tactics: The marketing strategies of multinational corporations are far more successful than those of other businesses. They use aggressive marketing strategies to increase sales in a short period. They have a more reliable and current market intelligence system and more effective advertising and sales promotion strategies.

The above-stated section of Class 11 Business Studies Chapter 3 Important Questions is a list of Important Questions covering the entire chapter.

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Marks: 4 Ans

‘Public Private Partnerships’ refer to partnerships between public sector and private sector in financing, designing and developing infrastructural facilities. The private sector participates in government projects by contributing finance, technical knowhow and managerial expertise. It is primarily used for capital intensive government projects of high priority, meant for public benefits.

Following points describes its features: i. Facilitates Partnership between public and private sector – It is an arrangement between public sector authority and private sector enterprise, in which the private party offers a public service or project and assumes substantial, technical and operational risk in the project.

ii. Pertain to high priority projects It pertains to high priority projects generally in the infrastructure sector.

iii. Suitable for big projects It is suitable for big projects having long gestation period, as capital subsidy may be provided by the government in the form of one time grant.

iv. Public welfare It is used in the government projects mainly aimed at public welfare.

Q.2 Google has worked with NASA on many projects in the past with some wonderful results. To develop the google earth, these two have joined the hands together.

Answer the following based on the above text:

1. Choose from the following, kind of business they are into.

a. MNC b. Joint Venture c. Sole Proprietorship d. Cooperative organisation

2. Google has worked with NASA on many projects in the past with some wonderful results. To develop the google earth, these two have joined the hands together. Into how many kinds such ventures be formed

a. Two b. Three c. Six d. Seven

3. What is/ are the reason/s for forming such ventures

a. Increase costs b. Increase resources c. Increase risks d. Sharing of profits

Marks: 3 Ans

1. b. Joint venture

A joint venture refers to an entity that comes into existence when two or more companies join hands for mutual benefits. It involves combining resources and expertise of two or more business firms together so as to achieve the common objective, for which the venture is formed.

Joint ventures can be Equity based or contractual also. Equity based joint venture is formed through an agreement where two or more business firms parties jointly form a new separate business firm as per the mutual agreement between the parties. Under contractual type of joint venture, an agreement to work together is created.

3. b. Increase resources

JV can be formed between a foreign country and domestic country, which opens new markets for both partners. Products which have reached saturation point in domestic market can be sold in new markets.

Q.3 In India, many public sector enterprises work and act through the officers of the government and employees of such enterprises are also the employees of government.

(i) Which public sector enterprise is being referred here

(ii) What features are used to describe such enterprises specified in (i) above.

Marks: 5 Ans

(i) The public enterprise being referred above is Departmental Undertaking

It is the oldest form of public enterprise and is established as department under the respective ministry. These are managed by government officials under the supervision of the departmental head. These act through government officers and its employees are government employees.

(ii) Features of Departmental undertaking:

• It involves centralized control by the ministry as it is a major division of the government department.
• It involves administrative formalities and excessive paper work.
• The decisions taken by the enterprise requires the approval of concerned ministry.
• There is strict accounting and audit control helps in effective utilisation of money.
• The revenue is deposited into the treasury which is a source of income for such enterprises.
• These are suitable for government activities concerned with national security.

Q.4 Name the organisation formed by passing a special act of Parliament or state legislature. State the features of such an enterprise.

Statutory corporation is an organisation formed by passing a special act of Parliament or state legislature.

The features of statutory corporation are : i. It is governed by the rules and regulations of this act. The act also defines its power and privileges. ii. It is owned by the State. The government has financial responsibility and power to appropriate its profit. iii. A statutory corporation is a body corporate. It can sue and be sued, can enter into contract and acquire property in its own name. iv. It is independently financed and can obtain funds by borrowing from the government or from public through sale of goods and services.

Public sector enterprises are organised as:

i. Departmental Undertaking – It is organised, financed and controlled by the government and is established as department of the concerned Ministry.

ii. Public Corporation It is an autonomous corporate body set up under a special act of the Parliament or of State Assembly.

iii. Government Company It is company in which at least 51 per cent of the paid up share capital is held by the Central or State Government or partly by central Government and partly by one or more State Governments.

Q.6 Kolkata Municipal Corporation decided to start project of an underground parking system to ease parking problems. It was started back in 2007. The project was successful as it has reduced traffic jams, haphazard parkings, etc.

Answer the following questions based on the above case study:

1. State the type of enterprise that is being referred to here.

a. Statutory Corporation b. Departmental enterprise c. MNCs d. Transnational corporation

2. Kind of enterprises as identified in (i) can sue and can be sued. What feature of such enterprises are we talking about

a. Flexibility b. Autonomy c. Separate Legal entity d. Monopoly

3. Funds do not come from central budget for such kind of enterprises. What does this signify

a. Flexibility b. Autonomy c. Monopoly d. Freedom to use money

1. a. Statutory Corporation This is a Statutory Corporation. It refers to an autonomous corporate body set up under a special Act of the Parliament or State Legislature. These have the power of the government as well as flexibility of private enterprises.

2. c. Separate Legal entity This means that Statutory Coporation is the separate legal entity that allows it to enter into contracts and acquire property in its own name. It can sue and can be sued.

3. b. Autonomy This signifies autonomy in finance. Statutory organisations are not financially dependent on the Government as the funds do not come from central budget.

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Question 1:

A government company is any company in which the paid-up capital held by the government is not less than

(a) 49 percent

(b) 51 percent

(c) 50 percent

(d) 25 percent

In a government company, the paid-up capital held by the state or central government is at least 51 percent of the total shares. In case the percentage of shares held by the government falls below 51, then the organisation cannot be regarded as a government company. In case, the government holds 49 per cent of shares in a company, the company is considered as a private organisation.

Hence, the correct answer is option (b).

Page No 80:

Question 2:.

Centralised control in MNC's implies control exercised by

(a) Branches

(b) Subsidiaries

(c) Headquarters

(d) Parliament

Centralised control in the context of MNCs refers to the control exercised by the corporation’s headquarters. In the case of MNCs, the headquarters exercise (centralised) control over all its branches and subsidiaries across all the countries where the MNC has a presence.

Hence, the correct answer is option (c).

Question 3:

PSE's are organisations owned by

(a) Joint Hindu Family

(b) Government

(c) Foreign Companies

(d) Private entrepreneurs

The term ‘PSEs’ stands for public sector enterprises, which are completely owned and controlled by the government. On the other hand, the other types of organisations given in the question, namely, Joint Hindu family, foreign companies and private entrepreneurs, are controlled and owned by private individuals.

Question 4:

Reconstruction of sick public sector units is taken up by

The responsibility of reviving sick public sector units lies with of The Board of Industrial and Financial Reconstruction (BIFR). It decides whether the sick PSU s are to be reconstructed or these should be shut down.

Page No 81:

Question 5:.

Disinvestment of PSE's implies

(a) Sale of equity shares to private sector / public

(b) Closing down operations

(c) Investing in new areas

(d) Buying shares of PSE's

Disinvestment refers to the process of selling equity shares of a public sector enterprise to the private or the public sector. Through disinvestment, the ownership of the government in a PSE gets diluted, and simultaneously, the quantum of shares held by the private sector in that enterprise increases.

Hence, the correct answer is option (a).

Question 6:

The equity-based joint venture does not include (a) Cooperative development (b) Company (c) Partnership (d) Limited liability partnership

The form of equity-based joint venture includes Company, Partnership, and Limited liability partnership. However, it does not include Cooperative development. Hence, the correct answer is option (a).

Explain the concept of private sector and public sector?

Private sector : It refers to that part of an economy which is owned and managed by individuals or companies with the sole motive of earning profits. In other words, it encompasses all organisations that are not owned or operated directly by the government. In most of the free economies (where the government has a minimal role), the private sector employs a significant portion of the workforce. The private sector consists of the following types of organisations.

• Sole proprietorship

• Partnership

• Joint Hindu Family

• Cooperative societies

• Company

Public sector : This sector consists of organisations that are directly owned and operated by the government. These organisations are either partly or completely owned by the central or a state government—Bharat Heavy Electricals Ltd, Oil India Ltd and Life Insurance Corporation of India are examples of public sector industries.

State the various types of organisations in the private sector..

The private sector consists of that part of an economy which is owned and managed by individuals or companies with the motive of earning profits. The various types of private sector organisations in India are as follows.

What are the different kinds of organisations that come under the public sector?

The public sector consists of organisations that are directly owned and operated by the government. These organisations are either wholly or partially under government control. The following are the various forms of public sector organisations.

• Departmental undertakings

• Statutory corporations

• Government companies

List the name of some enterprises under the public sector and classify them.

(a) Departmental undertakings : Posts and Telegraphs, Indian Railways

(b) Statutory corporations : Food Corporation of India (FCI), Life Insurance Corporation of India (LIC)

(c) Government company : Bharat Heavy Electricals Ltd, Hindustan Machine Tools Ltd

Why is the government company form of organisation preferred to other types in public sector?

In a government company, at least 51 per cent of the company’s shares are held either by the central or by the state government. This form of organisation was established under the Indian Companies Act of 1956. The following are the reasons that the government-company form of organisation is preferred over the other forms in the public sector.

(a) A government company enjoys the maximum autonomy in all its managerial actions and decision-making processes.

(b) It faces no undue interference by the department concerned in its operations.

(c) It has its own, separate entity−that is, a government company is different from the government.

(d) It provides goods and services at reasonable rates and at the same time also ensures safe marketing activities.

How does the government maintain a regional balance in the country?

The following are the ways in which the Government of India has employed to maintain regional balance in the country.

(a) Setting up steel industries in rural areas: During the 1950s, the Government of India established four major steel plants in rural areas. The basic rationale behind this move was to facilitate the economic development and growth of rural and backward areas.

(b) Creating employment opportunities : The steels plants and many other enterprises in rural areas provided the rural people with employment opportunities, helping them to earn a higher income and enjoy a better standard of living.

(c) Facilitating development through linkages : The setting up of the industries contributed to the development of various forward and backward linkages, besides providing employment opportunities. These linkages encouraged the agricultural sector, which in turn spurred the development of ancillary industries (i.e., related industries).

(d) Ensuring infrastructure development : The establishment of industries in rural and backward areas necessitated infrastructure development, including better roads, railways and bridges. The infrastructure made the backward areas well connected with the rest of the country, facilitating the growth and development of these areas.

Question 7:

State the meaning of public private partnership.

The Public Private Partnership is that model of partnership wherein the tasks, obligations, responsibilities and risks are optimally allocated among the public and the private partners. In a PPP, the public partner may include government entities, such as ministries, government departments, municipalities, etc., whereas the private partner may include local or foreign businesses or investors with relevant technical or financial expertise. 

Describe the industrial policy 1991, towards the public sector?

The following are the major points that describe the industrial policy of 1991.

(a) Fall in the number of industries reserved for the public sector

From the table above, it can be seen that the number of industries reserved for the public sector fell from 17 in 1956 to eight in 1991. This implies that in 1991, there were more industries in which the private sector could play a role, compared with 1956. In this way, the industrial policy of 1991 aimed at

(i) infusing competition (as the public sector had to compete with the private sector)

(ii) increasing the efficiency of public sector enterprises (PSEs), by facilitating stiff competition from the private sector

(b) Disinvestment of shares of the selected public sector enterprises (PSEs) : For disinvestment from PSEs, the government reduced its stakes in these enterprises and aimed at encouraging greater participation of the private sector and the general public in industrial sectors. The following were the main rationale behind disinvestment.

(i) Divert resources to social priority areas : By disinvesting from PSEs (the less important ones), the government aimed at diverting funds from the less important PSEs to social priority areas, such as health and education, for improving the people’s welfare.

(ii) Transfer risk : Often, the funds allocated to PSEs had not been optimally utilised. This misutilisation of funds, together with bureaucratic corruption, led PSEs to incur heavy losses, which exerted an acute financial burden on the government. Therefore, by disinvesting from PSEs, the government aimed at shifting this commercial risk to the private sector, which would invest their funds only in feasible projects.

(iii) Reduce public debt: As the government did not have to allocate funds to PSEs where disinvestment had taken place, the need for incurring fresh public debts was reduced.

(iv) Introduction of corporate governance : Disinvestment helped the government to reduce its role in PSEs and encouraged the introduction of corporate governance. This made these enterprises work in a more disciplined and professional manner.

(c) Policies for sick PSEs : The Board of Industrial and Financial Reconstruction was assigned the task to evaluate the sick PSEs and decide whether they could be revived or should be shut down. The decision to shut down sick PSEs freed the government from intense financial pressure, as it no longer needed to financially support these units.

(d) Memorandum of Understanding (MoU) : Under an MoU with sick PSEs, their managements were given greater freedom to operate and achieve specified targets. This led to the PSEs operating freely and efficiently.

What was the role of the public sector before 1991?

During the initial years of economic planning, particularly in the 1960s and 1970s, the public sector was accorded a pivotal role in the development of industries in India.

The following points highlight the role of the public sector in industrial development in the pre-1991 period.

(a) Infrastructure development : Infrastructure such as communication, transport, energy supply and banking are the basic prerequisites for industrial development. But, because of the requirement of heavy initial investment and long gestation periods (for earning returns on such investments), the private sector lacked the initiative for undertaking infrastructure development projects. In such a scenario, it was only the public sector that could mobilise the huge amount of investment required. Hence, this sector was assigned the role of developing infrastructure.

(b) Maintaining regional balance : During the 1960s and 1970s, India faced acute regional disparities in development. Some regions were comparatively much better developed than other regions. The regional disparities impeded the nation’s growth and development. In order to bring about regional balance, public sector enterprises (PSEs) were set up in backward and rural areas. These PSEs not only provided employment but also encouraged the development of ancillary units (or supporting industries) in these areas.

(c) Economies of scale : Large-scale industries, such as natural gas and petroleum, enjoy economies of scale (benefits derived from them are greater when operated on a large scale). In the years just after independence, the private sector was not big enough to operate these large-scale industries because they required huge capital investments. Operating these industries on a small-scale was not an option as this would have caused losses. Hence, the public sector was required to start and operate these industries.

(d) Import substitution and exports : Attaining self-sufficiency was one of the important objectives of India’s economic planning. The aim was to restrict imports and at the same time maximise exports. Thus, PSEs were established to manufacture heavy machinery and engineering goods domestically, which would restrict imports. Simultaneously, with the aim of expanding exports, PSEs such as the Metals and Minerals Trading Corporation of India (MMTC) and the State Trading Corporation (STC) were established.

Can the public sector companies compete with the private sector in terms of profit and efficiency? Give reasons for your answer.

No, the public sector cannot compete with the private sector in terms of profit and efficiency. This is because the private sector is usually more efficient and earns more profit than the public sector. The following points make the reasons clear.

(a) Profit motive : Profit is the prime objective of private sector industries. This motive is achieved by choosing those combinations of capital, labour and other inputs that minimise the business costs. Further, these companies have various research and development centres which come up with new technologies to minimise the costs. However, in the case of the public sector, profit is not the only important objective. Besides profits, it is the welfare motive that normally drives the public sector. The prime objective of the public sector is to produce goods and services that enhance the well-being and welfare of society. Moreover, PSEs make their goods and services available to consumers at a nominal cost, in order to keep them within the reach of the poor.

(b) Efficiency : An organisation is said to be efficient when it uses optimum amount of inputs at low costs to produce a given amount of output. As private sector industries have structures to ensure quick decision making, they set their goals in a manner such that the efficiency targets are met well on time. This is because, in private industries, the management keeps a constant eye on its employees, which helps check inefficiencies and reduce wastages. In public sector industries, on the other hand, the decision-making process is slow and rigid. This is because of the numerous procedures that employees have to follow, which slow down decision making and affect the overall efficiency of the industries. Moreover, public sector industries are slower to adopt new and efficient technologies, and consequently, they lag behind private sector industries.

Why are global enterprises considered superior to other business organisations?

Multinational corporations (MNCs) are enterprises with operations in more than one country. They are huge industrial organisations characterised by their large size, wide range of products and use of advanced technologies and sophisticated marketing strategies. It is because of all these characteristics that MNCs are able to capture a bigger share of market compared with other enterprises. The following features make MNCs superior to other business organisations.

(a) Huge capital resources : MNCs have huge resources as they are capable of generating capital from all over the world. As they have goodwill, they can also borrow from international banks and from a large number of investors who are willing to invest in them for huge return s.

(b) Foreign collaborations : MNCs generally enter the market with the help of local private companies. This is mainly because of the restrictions imposed on them by the government and also to take advantage of the brand image of the Indian company.

(c) Advanced technology: These companies inv est huge amounts in research and development of technology. Thus, new technology helps them to increase their efficiency and attain a superior position in the market.

(d) Product innovation : Multinational corporations have refined research and development centres for the innovation of new products. This helps them to sustain in the market and retain their large consumer base

What are the benefits of entering into a joint venture and public private partnership?

A joint venture is a business agreement in which two or more organisations come together for mutual benefits and gains. Business organisations in a joint venture share not only the physical, financial and human resources available but also the risks and profits of the business. The following are some of the benefits for a company entering into a joint venture.

(a) Increased resources and capacity : In a joint venture, the resources and operational capacities of the individual business are pooled. A joint venture is able to expand and grow better than an individual business enterprise.

(b) Access to new markets and distribution networks : Entering into a joint venture with an enterprise located in another region widens the market base for each of the individual enterprises.

(c) Access to technology : Through a joint venture, a company can acquire new and modern technology more easily with less investment and less time and effort compared with the technology that individual enterprises may be able to acquire working independently.

(d) Innovation: A joint venture, especially with a foreign partner, gives a company access to new ideas and technology which help in the innovation of new products. These new products enable businesses to sustain in today’s complex and competitive market.

(e) Low cost of production: The costs of raw material and labour, etc., are very low in India compared to other countries. Thus, international corporations that enter into joint ventures with Indian companies reap huge benefits. The Public Private Partnership is that model of partnership wherein the tasks, obligations, responsibilities and risks are optimally allocated among the public and the private partners. In a PPP, the public partner may include government entities, such as ministries, government departments, municipalities, etc., whereas the private partner may include local or foreign businesses or investors with relevant technical or financial expertise.  The key benefits of PPP are as follows: (a) Sharing of risk : With the public and the private entities, both coming together for the construction and designing of projects, the risks are shared and thus reduced. (b) Accelerating project : The public and private partnership ensure that the project work is accelerated by sharing the tasks and responsibilities with the aim of completing the project on time.

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Class 11 Business Studies Case Study Questions

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CBSE Class 11 Business Studies Case Study Questions are available on myCBSEguide App . You can also download them from our student dashboard .

For students appearing for grade 11 CBSE exams from the Commerce stream, Business Studies is a fundamental subject. Business Studies is considered to be quite interesting as well as an occupying subject as compared to all other core subjects of the CBSE class 11 commerce stream. To ace this CBSE exam, students are not only required to work hard but they ought to learn to do smart work too.

Among all the other core subjects of the Commerce stream i.e accountancy, economics and business studies, Business Studies is the one that is purely theoretical. It is termed to be comparatively easier and more scoring than the other mandatory subjects of the commerce stream. Many students who opt for the commerce stream after their 10-grade exams desire to learn in-depth about the business organizations and their work, for them the subject is of utmost importance. Business Studies is an essential component of the class 11 commerce stream curriculum.

In order to ace the subject the student needs to have conceptual clarity. CBSE has designed the syllabus for class 11 Business Studies so as to provide students with a basic understanding of the various principles prevalent in the Business organizations as well as their interaction with their corresponding environment.   

Case Study Questions in class 11 (Business Studies)

Case-based questions have always been an integral part of the Business Studies question paper for many years in the past. The case studies have always been considered to be challenging for the students, for such questions demand the application of their knowledge of the fundamental business concepts and principles. Last year i.e-  2021 CBSE introduced a few changes in the Business Studies question paper pattern to enhance and develop analytical and reasoning skills among students.

It was decided that the questions would be based on real-life scenarios encountered by the students.CBSE not only changed the way case-based questions were formulated but also incremented their weightage in the Business Studies question paper. The sole purpose of increasing the weightage of case-based questions in the class 11 curriculum by CBSE was to drift from rote learning to competency and situation-based learning.

What is a case study question? (Business Studies)

In Business Studies, a case study is more like a real-world test of how the implementation works. It is majorly a report of an organization’s implementation of anything, such as a practice,a product, a system, or a service. The questions would be based on the NCERT textbook for class 11 Business Studies. Case-based questions will definitely carry a substantial weightage in the class 11 Business Studies question paper. questions.

A hypothetical text will be provided on the basis of which the student is expected to solve the given case-based question asked in the Business Studies class 11 exam. Initially, the newly introduced case-based questions appeared to be confusing for both the students and the teachers. Perhaps, they were reluctant to experiment with something new but now a lot more clarity is there that has made the question paper quite student-friendly.

Case study questions could be based on any chapter or concept present in the NCERT textbook. Thus, it is expected from the students to thoroughly revise and memorize the key business fundamentals. 

Business Studies syllabus of class 11 CBSE   

The entire Business Studies course is divided into 2 parts:

• Part A, Foundation of Business
• Part B, Finance and Trade

The class 11 Business Studies exam is for a total of 100 marks, 80 marks are for the theory and the remaining 20 for the project. Most of the questions are based on the exercises from the NCERT textbook. It is recommended to rigorously go through the contents of the book. A single textbook has been published by NCERT for Class 11 Business studies. There are a total of 10 chapters in this book divided into 2 parts. 

CBSE Class – 11

Business Studies (Code No. 054)

Theory: 80 Marks Time: 3 Hours Project: 20 Marks

Case Study Passage (Business Studies class)

As part of these questions, the students would be provided with a hypothetical situation or text, based on which analytical questions will have to be answered by them. It is a must for the students to read the passage in depth before attempting the questions. In the coming examination cycle (2022-23), case-based questions have a weightage of around 30%. These questions can be based on each chapter in the NCERT book for Business Studies, grade 11.

Students must prepare well for the case-based questions before appearing for their Business Studies exam as these questions demand complete knowledge of the various concepts in their syllabus. CBSE plans to increase the weightage of such questions in the upcoming years.

Sample case-based Questions in Business Studies

Business Studies as a subject provides a way of perceiving and interacting with the business ecosystem. It is a core subject of the commerce stream that is purely theoretical and relevantly easier than the other compulsory subjects of the stream. Class 11 Business Studies syllabus is closely related to trade and commerce. The subject cannot be ignored as it is the foundation of many concepts and theories which are studied at an advanced level in class 12.

The case-based questions asked in the CBSE Business Studies question paper for class 11 are of two types:

As per the latest circular issued by CBSE on Assessment and Evaluation practices of the board for the session 2022-23, CBSE has clearly mentioned that competency-based questions including case studies will be different from subjective questions.  

The questions can also be categorized on their difficulty level:

• Direct: such questions can be easily solved. Their answer is visible in the given passage itself.
• Indirect/ Analytical: such questions are confusing and tricky. These can be solved by the application of the theory or principle that is highlighted in the provided text. 

How To Prepare For Case-based Questions? (Business Studies grade 11)

Students need to prepare well for the case-based questions before appearing for their class 11 Business Studies exam. Here are some tips which will help the student to solve the case-based questions at ease:

• Read the provided text carefully
• Try to comprehend the situation and focus on the question asked
• Analyze and carefully answer the question asked
• In general, the passage given would be lengthy in Business Studies case-based questions but their solutions are comparatively short and simple
• One can significantly save time if they follow a reversal pattern, that is going through the questions before reading the comprehensive case study passage.
• Answer in a concise manner
• One should concentrate on solidifying key fundamental principles/theories
• Go through the NCERT textbook in depth. The language used is crisp and simple.
• While providing solutions to the case-based question, pick the keyword/keyline based on which you are driving insights.

 In order to excel in the Business Studies class 11 exam, one needs to ignore the shortcut techniques and get to read the NCERT textbook rigorously. Case studies can be easily solved if your key fundamentals are strong and clear. The best part of having these questions is that the asked question itself projects a hint of its answer. These simple points if kept in mind will definitely help the students to fetch good marks in case study questions, class 11 Business Studies. 

Case study question examples in Business Studies

Here a re some given case study questions for CBSE class 11 Business Studies. If you wish to get more case study questions and other study material, download the myCBSEguide app now. You can also access it through our student dashboard.

Business Studies Case Study 1

Read the hypothetical text given and answer the following questions:

Manish, Rahul and Madhav live in the same locality. They used to meet and discuss their ideas. After discussing the recent fire breakout in their area, they decided to take fire insurance for their house or work area. Manish gets his house insured against fire for ₹1 lakh and during the policy period, his house gets damaged due to fire and the actual loss amounts to ₹2.5 lakh. The insurance company acquired the burning material and approved his claim. Rahul gets his godown insured against fire for ₹1 lakh but does not take enough precautions to minimize the chances of fire like installing fire extinguishers in the factory. During the policy, a fire takes place in his godown and he does not take any preventive steps like throwing water and calling the employees from the fire fighting department to control the fire. He suffered a loss of ₹1,20,000. Madhav took a fire insurance policy of ₹20 lakh for his factory at an annual payment of ₹24,000. In order to reduce the annual premium, he did not disclose that highly explosive chemicals are being manufactured in his factory. Due to a fire, his factory gets severely damaged. The insurance company refused to make payment for the claim as it became aware of the highly explosive chemicals.

How much can Manish claim from the insurance company?

• None of the above

How much compensation can Rahul get from the insurance company?

Which principle is violated in the case of Rahul?

• Insurable Interest
• Utmost Good Faith

How much amount is the insurance company liable to pay to Madhav if he files a case against it?

• Insufficient information

Which principle of Insurance is violated by Madhav?

• Insurable interest
• Subrogation
• Proximate Cause

The insurance company acquired the burnt material and approved his claim. Which principle of Insurance is highlighted in the given statement.

• (a) Mitigation
• (a) Utmost Good Faith
• (d) Subrogation

Business Studies Case Study 2

 Sarthak Electronics Ltd. has a loss of Rs 15,00,000 to pay. They are short of funds so they are trying to find means to arrange funds. Their manager suggested a claim from the insurance company against stock lost due to fire in the warehouse. He actually meant that they can put their warehouse on fire and claim from insurance companies against stock insured. They will use the claim money to pay the loan.

• Will the company receive a claim if the surveyor from the insurance company comes to know the real cause of fire?
• Write any two Values which the company ignores while planning to arrange money from false claims.
• State any three elements of fire insurance

Business Studies Case Study 3

OLX and qickr are examples of well-known websites used to conduct business. Tarasha’s sofa set got spoiled in the rain. Her friend suggested that she should change the fabric so that it looks new and put it for sale on Olx. Tarasha followed her friend’s advice and got her sofa repaired so that it looked better and uploaded nicely clicked pictures on the website without disclosing the fact that it was damaged from the inside. She found a buyer and sold it for Rs 10,000. After five days the buyer found the real state of the sofa set and called Tarasha but she did not answer any of the calls.

• identify the type of business highlighted in the above case.
• Identify any two values which are overlooked by Tarasha.
• Explain any two benefits and limitations of e-business.

Advantages of case study questions in Business Studies

Class 11 Business Studies syllabus is not very vast but has to be focussed upon as it forms the base for your 12th grade Business Studies syllabus. Students are supposed to prepare themselves thoroughly from the NCERT textbook. The Case-based questions prominently focus on the real and current scenarios of the Business world. Approximately 30% of the question paper will comprise case study questions that demand high-order thinking and reasoning skills from the students. The students ought to practice class 11 Business Studies case-based questions from the various options available to them, so as to excel in the subject.

• Enhance the qualitative and quantitative analysis skills of students
• Provides an in-depth understanding of the key Business theories/concepts
• Inculcate intellectual capabilities in students
• Help students retain knowledge for a longer period of time
• The questions would help to discard the concept of rote learning
• Case studies promote and strengthen practical learning.

“Failure is success if you learn from it”

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