Subject: Business Mathematics
Time: 3 Hours
Instructions: Answer all questions.
Section A (Objective type)
1. Which of the following is not a type of business organization?
a) Sole proprietorship
b) Partnership
c) Joint-stock company
d) Public limited company
2. The process of recording business transactions in a systematic and chronological manner is called:
a) Journalizing
b) Posting
c) Balancing
d) Trial balance
3. Which of the following is not a financial statement prepared by businesses?
a) Balance sheet
b) Income statement
c) Cash flow statement
d) Statement of retained earnings
4. The rate of interest charged by banks to borrow money is called:
a) Simple interest
b) Compound interest
c) Nominal interest rate
d) Effective interest rate
5. Which of the following is not a method of depreciation?
a) Straight-line method
b) Double-declining balance method
c) Sum-of-the-years' digits method
d) Annuity method
Section B (Descriptive type)
6. Describe the various forms of business organization.
7. Explain the process of journalizing business transactions.
8. Discuss the different types of financial statements prepared by businesses.
9. Compute the simple interest and compound interest on a loan of ₹10,000 for 2 years at an interest rate of 10% per annum.
10. Calculate the depreciation expense on an asset costing ₹1,00,000 for 5 years using the straight-line method.
Section C (Case Study)
Case Study 1: XYZ Company is a small business that sells electronic gadgets. The company has been in business for 5 years and has experienced steady growth. However, the company is now facing some challenges, including increasing competition from online retailers and rising costs.
Questions:
1. Identify the challenges faced by XYZ Company.
2. Suggest some solutions that XYZ Company can implement to overcome these challenges.
3. What are the financial statements that XYZ Company should prepare to monitor its financial performance?
Case Study 2: ABC Company is a large corporation that manufactures automobiles. The company has a strong brand presence and a wide distribution network. However, ABC Company is facing some issues, including declining sales, increasing manufacturing costs, and technological advancements that threaten its market share.
Questions:
1. What are the issues faced by ABC Company?
2. Suggest some strategies that ABC Company can adopt to address these issues.
3. What are the key financial ratios that ABC Company should monitor to assess its financial health?