1. what is the difference about the business idea that Josephine undertook?
2. How does Josephine call her 'Bees'?
3. Apart from growing honey, what does Josephine emphasise in her talks?
4. A business needs to do much more than generating
profits. Look at her example and elaborate the
statement.
5. What does she visualize? What does this vision embody?
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Answers
Answer:
The Pie chart shows the expenditure of a family on various items and savings in a year. The family spends 20% of its income on food, 20% on household activities, 10% on clothing, 15% on children's education, 5% on transport, and 5% on entertainment. With all these expenditures, the family is able to save 25% of its income in a year.
The family is spending their money wisely. Food and education play an important role in life. To be healthy, one should not compromise on the quality of food while good quality education is the basic requirement for child's bright future. Spending 5% on entertainment and 10% on clothing are also reasonable. With all these expenditures the family is able to do a saving of 25% in a year which is beneficial for their future.
Answer:-
1. Josephine could have earned if she had taken the money and invested it elsewhere. If the rate of return on her best alternative investment opportunity is 10%.
2. Josephine called her bees because she was growing honey.
3. Josephine took a personal interest in the gardens and the roses, and learned a great deal about botany and horticulture from her staff.
4. Without sufficient capital or the financial resources used to sustain and run a company, business failure is imminent. No business can survive for a significant amount of time without making a profit, though measuring a company's profitability, both current and future, is critical in evaluating the company.
Although a company can use financing to sustain itself financially for a time, it is ultimately a liability, not an asset. As Josephine did. So, we can say that A business needs to do much more than generating profits.
5. She visualises the profit and loss made in business. This vision helps her to understand business.