Case study first


Rakesh's Father gifted him a cricket bat on his birthday. The cost of the bat was Rs. 800. Few months later, Rakesh sold it  to Nishant, one of his school  friends,  for Rs. 850. He was very happy to earn a profit of Rs.50. He was boosted by this transaction  and after completing his studies, he formed a partnership business with his friend Nishant trading in bats and other sports materials under the name  M/s Rakesh Traders. Rakesh and Nishant  both act like an agent as well as principal of each other.  He started earning huge money out of same. His father suggested him to spend some money on social responsibilities. Rakesh then decided to distributed free sports goods to schools which were financially  weak.

Qus 1 Can the transaction between Rakesh and Nishant be termed as business transaction ? why or why not?
Qus 2 Can the transaction between M/s Rakesh Traders and other persons be termed as business transaction ?
Qus 3 Identify the value which according to you motivated Rakesh in distributing free sports goods.

Dear Student.

Ans 1) Transaction between Rakesh & Nishant cannot be termed as business transaction  as there was no business or profit motive; it was merely a mutual exchange

Ans 2) Transactions of M/s Rakesh Traders with other persons are business transactions as they are carried with a business motive & not any personal motive

Ans 3) Values which motivated Rakesh to distribute free sports goods are responsibility towards society; urge to improve the condition of financially weak schools


  • -2
What are you looking for?