2.4. (a) From the following data, prove that Fisher Ideal Index satisfies both the time reversal
and the factor reversal tests:
Item
Price
6
A
B
2018
Quantity
50
100
60
Price
10
2
2019
Quantity
60
120
60
2
C
4
6
निम्नलिखित आंकड़ों से, साबित होता है कि फिशर आइडियल इंडेक्स समय उलट और कारक उलट
दोनों परीक्षणों को संतुष्ट करता है:
2018
2019
कीमत
मात्रा
कीमत
मात्रा
क
6
50
10
60
ख
N
100
2
120
ग
4
60
6
60
(b) Fit a straight line trend to the following data and estimate the expected profit for the
Answers
Answer:
Each department has its own incharge , plans and execution resources which leads to focused efforts of all the employees. Identify the principle of management1 ▶ Why do you think Tharanga opened a second-hand
bicycle shop?
Tharanga had always wanted to run a business because
he wanted to be his own boss. He also had a passion for
bicycles and spent a lot of his spare time restoring old
bicycles and selling them on to local people as a hobby.
He probably felt he could make a living by exploiting this
hobby. He may also have been motivated by the prospect
of making some money.
2 ▶ What are three resources used by Tharanga when
setting up his business?
Tharanga when setting up his business used a range
of resources. For example, he needed premises, tools
and equipment, such as spanners, pliers, screwdrivers
and wrenches, spare bicycle parts, lubricants, business
stationery, electricity and a mobile telephone. He also
employed his younger brother as a shop assistant.
3 ▶ Why do you think businesses exist?
Businesses exist to provide goods or services. In this
example, Tharanga sold second-hand bicycles and carried
out a repair and maintenance service for bicycle owners. In
the private sector these goods and services are sold in the
hope that a profit is made for the business owners.
ACTIVITY 1
CASE STUDY: GULF CONFECTIONERY AND BISCUIT CO.
1 ▶ Does the Gulf Confectionery and Biscuit Co. supply
products that satisfy needs or wants?
The Gulf Confectionery and Biscuit Co. manufactures
high-quality toffees, sweets and lollies. These products
are designed to meet consumers’ wants, not their needs.
They are non-essential products. They are not required for
human survival. People can live without toffees, sweets and
lollies, so they are not designed to meet their needs.
2 ▶ The Gulf Confectionery and Biscuit Co. is a private
enterprise. What does this mean?
Individuals or groups of individuals own most businesses
privately. They are private sector businesses. The Gulf
Confectionery and Biscuit Co. is a private enterprise that
makes toffees, sweets and lollies. The owners hope that the
business is successful and is able to make a profit.
ACTIVITY 2
CASE STUDY: STAKEHOLDERS
1 ▶ What is meant by the term business stakeholder?
A stakeholder is an individual or a group that has an interest
in the operation of a business. Some stakeholders, such as
owners, have a financial interest in the business.
Ms. Shreya, 33 years old, a non-resident, owns a house in India which is let out wef 1st
October 2018. The construction of the house was completed on 1st Sept. 2018. The house
is let out on a monthly rent of Rs. 75,000. Rent of two months could not be realized. Other
details of the house are as follows:
Municipal valuation - Rs. 50,000 pm
Municipal taxes due for 2018-19 - Rs. 50,000 out of which taxes paid during the year are
Rs. 30,000. Out of this Rs. 30,000, Rs. 20,000 is paid by the owner and Rs. 10,000 is paid
by the tenant during the previous year 2018-19.
Ms. Shreya took a loan of Rs. 15,00,000 from HDFC Bank on 1st September 2013 @
12.5% per annum for construction of this house. Rs. 2,00,000 was repaid on 31st March
2016. Remaining amount is unpaid so far.
Compute net income and tax liability of Ms. Shreya for the assessment year 2019-20. She
spends Rs. 30,000 on medical treatment of her dependant brother who is suffering from a
disease specified in the rules made by the Board and claims a deduction for the same under
relevant section. Her income from other sources is Rs. 5,70,000 and a loss of Rs. 50,000
(short term) from Capital Gains head.