PERFORMANCE

ENHANCEMENT PROGRAM
[FORMATION OF CASE PROBLEMS]
On Business Studies

CHARAK RAY

[email protected]
 FORMATION OF CASE PROBLEMS
SUGGESTIVE TIPS TO PREPARE CASE PROBLEMS
1. Attempt should be made to form case problems
according to the word limit as suggested to attempt
understanding and remembering based questions.
2. Case problem for one mark question should not be
made. Identification / Application of concepts in short
sentence should be framed.
3. Case problem for 3-4 marks should be covered in 75-
120 words.
4. Case problem for 5-6 marks should be covered in 150
-200 words.
5. Take any theme or topic from any source, preferably
from newspaper which relates to any chapter of
either class XI or XII.
6. Use of key words and lines from the ncert books
should be cautiously used.
 FORMATION OF CASE PROBLEMS

SUGGESTIVE TIPS TO PREPARE CASE PROBLEMS

7. A teacher must have concept clarity throughout the
syllabus especially on the topic on which case problems
is to be framed. The experiences show, Lack of clarity
has always made the case problem confusing and
vague. Vague case problem will be followed by vague
questions and the readers won’t be able to analyse,
understand & comprehend what exactly would have
been in the mind of paper setter and will not be able to
respond the way as expected by the paper setter. As a
result, only the students pay the cost of wrong and
faulty case problems.
 FORMATION OF CASE PROBLEMS
SUGGESTIVE TIPS TO PREPARE CASE PROBLEMS
8. Exact copy of lines from the ncert book should be
avoided. Many a times, it has made the case problems
ambiguous, invites confusion with multiple answers.
Ambiguous questions always invite ambiguous answers.
As a result, the readers do not respond in the same
manner as expected by the paper setter. Take out
relevant information from such source. Relate such
information to the topic, its headings and subheadings
from the topic given in ncert and incorporate precise
information in your own words.
9. Form the case problems and see if the desired answer
comes out from the case. If not, add relevant information
and eliminate unnecessary information which has nothing
to do with the questions being asked. Many a times,
unwanted information attracts unwanted answers.
10. Share the case problems so formed with other
 FORMATION OF CASE PROBLEMS
CASE PROBLEM ON GST
The small industries in India had to bear adverse impact
of Goods and Services Tax (GST) in July, 2017. These units
provide about 90% of the inputs to the large scale
industries but the latter stopped taking their output and
asked the former to get them registered under GST so
that they could avail Input Tax Credit. Government later
realised the concerns of small industries and decided to
provide certain incentives to boost their business. Identify
and explain the business risk involved in the above case.
Ans. Legal causes: These causes relate to the rules,
regulations and laws passed by the government which are
expected to be complied by the individuals and business
organisations.
Note: Input Tax Credit means to recover the tax already
paid on the purchases from the taxes payable on the
sales.
 FORMATION OF CASE PROBLEMS
CASE PROBLEM WITH DIVERSE ALTERNATIVES
Seema is running a business of artificial jewellery, bags,
purses, nail art and other fashion accessories. Over the
past few years, her business has grown from a local shop
to a big business with three branches in the city. Now, she
has been finding it tough to manage the affairs of three
different branches on her own. She also wants to further
expand but is confused how to manage and expand it
further.
(a) Which form of business is being carried by Seema at
present?
(b) Suggest a suitable form of business she should adopt
to expand her business.
(c) Write two merits and demerits each of the business
form you suggest.
 FORMATION OF CASE PROBLEMS
CASE PROBLEM WITH DIVERSE ALTERNATIVES
Ans:(a) Seema is running sole proprietorship form of
business.
(b) She can convert her business into General
Partnership to expand and manage in better ways.
(c) Merits of Partnership: (explain)
Limitations of Partnership: (explain)
Alternative 1 to part (b)
(b) She can convert her business into Limited Liability
Partnership to expand and manage in a better way.
Alternative 2 to part (b)
(C) She can convert his business into Private Limited
Company to expand and manage in a better way.
Alternative 3 to part (b)
(D) She can convert his business into One Person
Company (O.P.C.) to expand and manage in a better
way.
 FORMATION OF CASE PROBLEMS
CASE PROBLEM ON GOVT’S INITIATIVE (START UP
INDIA)
(Based on unit – Ch 5 & 6): A company, ‘Kala Artists’ is
a new start-up inspired by the PM’s campaign on ‘Startup
India and Standup India’, which provides a diverse
collection of pottery, woodcrafts, glass painting etc., using
eco-friendly material. It decides to spend 5% of its profits
to build toilets for rural people to support ‘Swachh Bharat
Abhiyan’. The management plans to take its business to
the pocket of customers round the clock, which it believes
will strengthen rapport with their clients and support
green initiative of government. The management of the
company has also decided to create an attractive website,
which will have complete information about their stores,
description of their products on sale and announcements
about all forthcoming shows. Neera, who is responsible
for this job, is reluctant to adopt e-business model to
 FORMATION OF CASE PROBLEMS
CASE PROBLEM ON GOVT’S INITIATIVE (START UP
INDIA)
(a) By quoting the lines, state what the benefits of e-
business have been highlighted in the above
paragraph?
(b) By quoting the lines, state the limitations expressed
by Neeraon the issue of doing e-business.
(c) Which business model/network is ‘Kala Artists’
planning to pursue?
(d) Which responsibility is the company trying to
accomplish by spending a certain part of its profit?
Identify any two arguments in favour of such
responsibility.
(e) List the values which the business reflects in the
above case.
Additional Questions:
(f) How can a business reach the pocket of customers?
 FORMATION OF CASE PROBLEMS
CASE PROBLEM ON GOVT’S INITIATIVE (START UP
INDIA)
Ans. (a) By quoting the lines, state what the benefits of e-
business have been highlighted in the above paragraph?
Benefits of e-business
• Global Reach/Access
Quoted Lines: ‘‘The management of the company also decided
to create attractive website”
• Movement towards a paperless society
Quoted Lines: “It also believes … will lead to green initiative of
government”.
(b) By quoting the lines, state the limitations expressed by
Neeraon the issue of doing e-business.
Limitations expressed by Neera
• Low Personal Touch
Quoted Lines: “Neera, … believes that customers need to
experience the art objects before making a purchase”.
• Ethical Fallouts
 FORMATION OF CASE PROBLEMS
CASE PROBLEM ON GOVT’S INITIATIVE (START UP
INDIA)
Ans. (c) Which business model/network is ‘Kala Artists’ planning
to pursue?
Business to Customers (B2C)
(d) Which responsibility is the company trying to accomplish by
spending a certain part of its profit? Identify any two arguments
in favour of such responsibility.
Company is fulfilling the statutory norms of Corporate Social
Responsibility. The arguments in favour of social responsibility
are
• Long-term interest of firm
• Avoidance of government regulations
(e) List the values which the business reflects in the above case.
Values Reflected:
• Sensitivity towards environment (eco-friendly material and
green initiative)
• Respect for law and order (statutory contribution towards
CSR)
 FORMATION OF CASE PROBLEMS
CASE PROBLEM MADE FROM ADVERTISEMENT
A company which provides online platform to buy and sell the goods,
www.olx.in, launched its latest brand campaign known as the ‘6
Months Break-Up Challenge’. Through this initiative, it motivated the
people to sell their pre-owned goods which have not been used by
them for the last six months. The initiative was based on the insights
gathered from OLX’s annual consumer survey which helped to
understand the behaviour of users towards used goods as well as
other consumer trends. On seeing the advertisement, Hema was
impressed with the advertisement and decided to sell her LED TV
after some repairs.
She opened her account on the website of the company and
uploaded the pictures of her television giving the impression that the
TV was new one without much use. A buyer bought the TV but after a
few weeks it started giving trouble. The buyer tried to contact Hema
but could not contact.
(a) Which mode of transaction has been adopted by Hema in the
above case?
(b) Name and explain the business network adopted in the above
case.
(c) Which values did Hema ignore while selling the product?
 FORMATION OF CASE PROBLEMS
CASE PROBLEM WITH DIVERSE ALTERNATIVES
Ans. (a) E-business
(b) Customer to Customer: Such type of mode of business
involves seller and buyer with the help of the third party
wherein buyer and seller contact each other by opening their
online accounts at the website of online service provider.
(c) Values ignored by Reena: Transparency and honesty
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES

1. In the fierce battle with ‘Amazon’ and ‘Flipkart’ for supremacy in

the Indian e-commerce space, ‘Snapdeal’ decided to reduce the
marketing fee it charges from the online vendors on its portal and
have asked the vendors to lower the price so that it can shore up
sales on its portal. Vendors have agreed to this proposal as they
are not likely to affect their incomes. In addition, it decided to
deliver the goods within a day to increase average purchase and
getting towards profitability and hired more employees preferably
females and differently abled (Divyaang) persons.
(a) By quoting the lines, identify the characteristic of
management is highlighted in the above para?
(b) Identify and explain which principle of management you feel
applied with the consent of vendors?
(c) Highlight the values the company is likely to achieve.
(Source: Economic times May16,2016)

Based on first two para & 6 th para of the

article
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES

SUGGESTED ANSWER
1. (a)  Management is Dynamic: Quoted line (decided to reduce
the marketing fee)
Management is goal-oriented: Quoted line (it can shore
up sales on its portal)
Management is a group activity: Quoted line (Vendors
have agreed to this proposal)

(b)  Esprit de Corps: According to this principle, the managers

try to improve team spirit among their workforce to improve
efficiency in operations.
Here, the management of ‘Snapdeal’ and online vendors are
working in team spirit by passing the benefit of commission
cut to the buyers to beat their competitors.
(c)  Values likely to be achieved:
 Generation of employment opportunities
 Push to national income
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES

2. Lalaji, a local vegetable trader, took first mover advantage to sell

his vegetables and groceries online. With the help of venture
capitalists, he raised funds to grow his business, ‘locallalaji.com.
In the first year, the business did well. The industry was flooded
with new entrants like, Grofers, Bigbasket, PepperTap, Zopnow
etc. Inspite of sincere efforts by Lalaji, the business suffered
losses. The investors pressurised him for returns. In the third year
of operations, the company stopped paying salaries and loans.
The company was served a legal notice and assets were sold to
repay the debts. Investors demanded that ‘Lalaji’s’ personal
assets should be sold but the auctioneer refused to do so.
(Source: Economic Times Sept. 10,2015 – Localbanya is
temporarily out of business)
(a) Name the form of business organisation followed by Lalaji.
(b) Are the investors justified while asking for Lalaji’s personal
assets to be sold? Explain by highlighting the feature associated
with the above situation.
(c) Identify two values that have affected the spirits of investors
when they could not receive their dues from the company.
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES

2. SUGGESTED ANSWER

(a) The form of business organisation is ‘company’.

(b) Associated Feature is ‘Limited Liability’. The investors are
not justified while asking for the personal assets to be sold
because the liability of each member in a company form of
organisation is limited to the extent of face value of shares held
and net reserves.
(c) Values Affected:
Lack of transparency
Lack of accountability
Inefficient financial control
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES

3. EMERGING MODES OF BUSINESS

MrPankaj was running a home-furnishing business though his physical (brick
and mortar) store at Panipat. He was observing that the sales were declining
over the past two years. His friend Rohan suggested that he should tie up with
online market places. On his advice, he contacted Flipkart, which provided him
training and convinced him that he could do his business from his shop and
godown subject to availability of personal computer and internet. The online
partner provided all sorts of services round the clock at a click of the mouse.
He received the orders from many states and overseas countries and saw that
his sales grew manifolds He felt low sale for some products that required
personal attention. (Source: Economic Times Oct. 26, 2015 -Big Billion Sale)
(a) Identify the modes of business before and after connecting with Flipkart
(b) Distinguish between the two modes of business identified in part (a).
(c) Identify any two merits and limitations each of online business by quoting
the lines from the above case.
(d) List out values being emphasised and undermined in online business.
Based on para 1 & last column
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES

3. EMERGING MODES OF BUSINESS

MrPankaj was running a home-furnishing business though his physical
(brick and mortar) store at Panipat. He was observing that the sales were
declining over the past two years. His friend Rohan suggested that he
should tie up with online market places. On his advice, he contacted
Flipkart, which provided him training and convinced him that he could do
his business from his shop and godown subject to availability of personal
computer and internet. The online partner provided all sorts of services
round the clock at a click of the mouse. He received the orders from many
states and overseas countries and saw that his sales grew manifolds He felt
low sale for some products that required personal attention. (Source:
Economic Times Oct. 26, 2015 -Big Billion Sale)
(a) Identify the modes of business before and after connecting with Flipkart
(b) Distinguish between the two modes of business identified in part (a).
(c) Identify any two merits and limitations each of online business by
quoting the lines from the above case.
(d) List out values being emphasised and undermined in online business.
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES
3. SUGGESTED ANSWER
(a) Modes of business
Before associating with Flipkart: Traditional Business
After associating with Flipkart: e-business
(b) Distinguish between traditional Business and e-
business
Basis Traditional E-Business
Business
1. Operating Cost High Low
2. Ease in doing global Low High
business
(c) Merits: Ease of formation and lower investment requirements:
Quoted lines (he could do his business from his shop and godown)
Convenience: Quoted line (online partner provided all sorts of services
round the clock at a click of the mouse)
Global reach / access: Quoted line (received the orders from many
states and overseas countries)
Limitations: Low personal touch: Quoted line (low sale for some
products that require personal communication)
Need to technology capability: Quoted line (subject to availability of
personal computer and internet)
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES
4. FORMS OF BUSINESS ORGANISATIONS
Seema is running a business of artificial jewellery, bags, purses, nail art
and other fashion accessories. Over the past few years, her business has
grown from a local shop to a big business with three branches in the city.
Now, she has been finding it tough to manage the affairs of three different
branches on her own. She also wants to further expand but is confused
how to manage and expand it further.
(a) Which form of business is being carried by Seema at present?
(b) Suggest a suitable form of business she should adopt to expand her
business?
(c) Write two merits and demerits each of the business form you suggest.

(a) Seema is running sole proprietorship form of business.

(b) She can convert her business into General Partnership to expand and
manage in better ways
(c) Merits of Partnership:
(i) Easy to form: (explain)
(ii) Mutual Agency Relationship: (explain)
Limitations of Partnership
(i) Lack of continuity: (explain)
(ii) Possibility of conflicts: (explain)
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES
4. SUGGESTED ANSWER
Alternative 1 to part (b)
(b) She can convert her business into Limited Liability Partnership to
expand and manage in a better way
(c) Merits of LLP
(I) Limited Liability: (explain)
(ii) Corporate Body: (explain)
Limitations of LLP
Complicated Procedure: LLP is incorporated by following legal procedure
under LLP Act 2008.
Nationality: One partner needs to be resident in India can be partner in LLP.
Alternative 2 to part (b)
(C) He can convert his business into Private Limited Company to expand
and manage in a better way.
(c) Merits of Private Limited Company
(i) Personal Finance: A private limited company is not authorized to raise
funds from general public, so there is no legal commitment to outsiders.
(ii) Easy in formation: A simple procedure is followed to form private
limited company as no general public is involved in the management.
Limitations of Private Limited Company
(i) Limited Finance: As private company is not authorised to raise funds
from the general public, so limited capital can be raised from the members.
(ii) Difficult to form: The legal provisions of the companies Act, 2013 have
to be complied with to form private limited company.
 FORMATION OF CASE PROBLEMS
CASE PROBLEM FROM NEWSPAPER ARTICLES
4. SUGGESTED ANSWER
Alternative 3 to part (b)
(D) He can convert his business into One Person Company
(O.P.C.) to expand and manage in a better way.
(c) Merits of OPC
(i) Limited Liability: As it is formed on the lines of companies, the
liability of the member (owner) is limited to the extent of share
capital and undistributed profits.
(ii) Personal Freedom: The autonomy to run the business is
maintained as in case of sole proprietorship.
Limitations of OPC
Eligibility: Only a natural person who is citizen in India is eligible
form OPC.
Restriction on minor: No minor can become member of nominee in
an OPC form of business.
Note: A student is required to mention anyone type of organistion
with reasons under part (b).
THANK YOU…