G 10 by Business Studies

aarushimehta0623 — 2024-08-28 15:39:21 UTC

Q1. Adapting to a change in consumer preference towards online shopping. ‘Fast-Service' started a grocery delivery app. It is a platform that ensures 10- minute deliveries of groceries. Because of this service, ‘Fast-Service’ earned huge profit within a year. It planned to expand its operations and decided to raise funds by directly issuing its securities to investors. The market through which ‘Fast-Service' has decided to raise funds for its expansion is :

(a)Money market

(b)Primary market

(d)Both Primary and Secondary markets [1]

aarushimehta0623 — 2024-08-28 15:39:21 UTC

Q2. Nayar is working as P.G.T. Commerce in a CBSE affiliated school of Kerala. One day he was teaching about capital market in the class. He informed the class that during 1980’s the capital market in India witnessed a tremendous growth because of increasing participation of the public. This ever increasing investors’ population and market capitalisation led to a variety of malpractices on the part of the companies, brokers, merchant bankers, investment consultants and others involved in the securities market. These malpractices and unfair trading practices eroded investor confidence and multiplied investors’ grievances. The Government of India and the stock exchanges were helpless in redressing the investors’ problems because of lack of proper penalty provisions in the existing legislation. In view of this the Government of India decided to set up a regulatory body.

(a) Name the regulatory body which the Government of India decided to set up.

(b) Also state any three objectives of the regulatory body identified in part (a) above. [4]

aarushimehta0623 — 2024-08-28 15:39:21 UTC

Q3. Aditya Khosla, the Managing Director of ‘D.L.W. Ltd.’ and Rajesh Puri, the Finance Manager were discussing about the avenues of investing the idle funds of the company. Aditya Khosla was of the opinion that money should be invested in the capital market whereas Rajesh Puri, being more conservative, feels that it would be better if the investment was made in money market.

Since the economy was buoyant, the Managing Director convinced Rajesh that they should take

advantage of it and invest in the capital market to get good returns. Ultimately it was decided to invest the idle funds in the capital market.

(a) What kind of instruments should the company buy?

(b) Why is the capital market expected to give a better return in a buoyant economy? State the

reason.

aarushimehta0623 — 2024-08-28 15:39:21 UTC