Long Answer Type
Short Answer Type‘Financial market plays an important role in the allocation of scarce resources in an economy by performing various functions.’ Explain any three functions of financial market.
Crackers Ltd., a fire cracker manufacturing company launched some new products on eve of Diwali which attracted many buyers. To meet the increased demand, the company employed children from nearby villages. Although the product was in great demand, appropriate safety warnings were not mentioned on the packets that led to many accidents.
(i) Identify and explain the important product-related decision that was not taken into consideration by the company.
(ii) Also, identify any two values which were violated by the company.
(i) The important product-related decision the company failed to consider is labelling. Labelling refers to designing and developing the label to be put on the package. It gives all the details of the product like date of manufacture, details about the manufacturer, safety warnings, etc.
(ii) The two values violated by the company here is:
a) Duty to follow the laws of the country. In India, child labour is banned under various Acts.
b) The company’s duty to protect consumer and ensure their safety by making quality products and by giving the necessary information about their products.
State any three points of importance of consumer protection from the point of view of consumers.
Explain the following rights of consumers:
(i) Right to be informed;
(ii) Right to safety
Long Answer TypeDifferentiate between ‘capital-market’ and ‘money-market’ on the following basis:
(i) Participants;
(ii) Instruments;
(iii) Investment outlay;
(iv) Duration and
(v) Liquidity.
Explain ‘Price’ as an element of marketing– mix. Also, explain any four factors that affect the fixation of price of a product.
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