CBSE 2025 · Region 2 · Set 1 · Q30

The demand for take away food business is increasing

day-by-day. People working in multi-national companies

have to work till night very often and they are reluctant to

cook food. Taking advantage of this opportunity, Amit and

Bijoy started 'Langar', a take away food business. The food

became famous because of its good quality and standards of

hygiene followed by them.

Over the years, the business became very profitable. They

decided to expand the business by opening more branches

in different cities. To ensure consistent food quality at all

branches and to maintain the hygiene. and quality they

planned to import machines with advanced technology. The

cost of each machine was Rs. $\displaystyle 12$ crores. They knew that this

decision has to be taken very carefully, as it involves a huge

cost and that the decision, once taken is irreversible.

(i)

Identify and state the financial decision discussed in the

(i)

above para.

(ii)

Explain any two factors affecting the decision identified

(ii)

in (i) above.