Class Xi BST Questions

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BUSINESS STUDIES - CLASS XI

Practice set A

Time: 1.5h MM40

Section A (Objective Type/ MCQ)


(1 mark each to be answered in one word or a sentence)

1. A government company enjoys minimum autonomy. True/false


2. The owner of Mohan fertilizers, Sohan open a current account in Bank of Baroda, the customer can often withdraw
money from the current account only up to the Amount deposited in it. One day he needed money more than the
balance in the account, he was worried about how to arrange the money. one of his friend told him that the
customer having a current account in the bank can get the permission to withdraw money more than the balance in
the account after making an arrangement with the bank.
Identify which type of account facility provided by the bank referred to in the above case.
3. Narayan took a fire insurance policy of rupees 1 lakh for his factory at the annual premium of rupees 15000 in order
to avoid premium more than this amount he did not disclose that highly explosive chemical are being
manufactured in his factory due to fire his factory gets severally damage the insurance company refused to make
the payment for claim as it because aware about the highly explosive chemical.
which principle is related with this case?
4. Nanak has taken a loan from Rahim against the security of his factory. Can Rahim take a fire insurance policy of that
factory?
5. This is not a benefit of e-business:
a) convenience
b) low personal touch
c) Global reach
d) Customer satisfaction
6. Use of ATM to withdraw money is an example of:
a) B2B commerce
b) B2C commerce
c) C2C commerce
d) C2B e commerce
7. Name the organisation which is formed by passing a special act of parliament of state legislature.
8. A person repairs bikes on roadside. How will you describe this activity?
9. The minimum number of members in A cooperative society is...........
10. Why is mining called a primary industry?
Section B (Short Answer I)
(3 marks each to be answered in 50-75 words)
11. Only sale or exchange of goods and services for profit is business do you agree with the statement give reason in
support of your answer.
12. Hari, Ram and Gobind three partners in a firm the name of the form is ‘HRG PUBLICATION’ the latest books of
almost all subjects remain available at the ‘HRG PUBLICATION’. All three partners decide that 10% of the total profit
of the firm would be distributed among the poor children every year, this has a very positive effect on the Goodwill
of the firm. Gobind is a Renault businessman who allowed the use of this name by the firm but does not contribute
capital, Ram had contributed capital to the form but he does not participate in the management of the firm, Hari
actively participate in the management and does business on behalf of other partners.
Explain what types of partners Hari, Ram and Gobind.
13. Angat gets his house insured against fire of rupees 14 lakh with insurer A and for rupees 7 lakh with insurer B. A
loss of rupees 6 lakh occurred. How much compensation can he claim from A and B? Why?
Section C (Short Answer II)
(4 marks to be answered in about 120 words)

14. Amardas Limited, a foreign company started its business in under-development country. The size of the business is
quite large. The company has plenty of resources. It employs thousands of people in the Under-development
country. The raw materials used by the company are readily available here. However, since there was not demand
for these raw materials here, the producers were unable to get the best price for it. Due to this reason the
producers were discouraged. Some local Businessman used to act arbitrarily earlier, but now they have corrected
themselves. The reason for their becoming better is competition with the foreign company now their arbitrary
approach has ended altogether. Amardas Limited is using completely the latest technology in its various business
activities as a reserve the local people also have got the opportunity to learn the new technology because of using
the modern technology and doing production at a large scale the company’s cost of production is very low because
of its huge size and status, the company occupied a dominant position in the market and took over some domestic
firms.
a) Which type of business enterprise is referred to in the above para?
b) state any three features of the enterprise identified in (a) by quoting the lines from the above para.

Section D (Long Answer I)


(5 marks to be answered in about 150 words)

15. Ramdas Limited, a Russian company is manufacturing a high quality product which is very popular in America. The
company is searching for the possibilities of exporting its product to foreign countries after a thorough search on
the interest it arrived at the conclusion that India can be a good market for its product but the company is unaware
of the distribution system in India now the company is looking for search a company which is already established in
India and has a strong distribution system. Once again it searches on the interest that found that there was an
Indian company named Narayan Limited which was facing service financial constraints, but it had a very strong
distribution system Ramdas Limited negotiate with Narayan Limited and both the companies made an agreement
to jointly run their business in this way the Russian company with the help of Narayan Limited got a good
experience of entering the foreign market
a) Identify the type of business enterprise formed by merging Narayan Limited with Ramdas Limited.
b) State any four features of such business enterprise

Section E (Long Answer II)


(6 marks each to be answered in about 200 words)

16. Why are e-business and Outsourcing referred to as the emerging modes of business? Discuss the factors
responsible for the growing importance of these trends.
17. Arjun Private Limited is a reputed company manufacturing computers the company is earning a considerable profit.
Both the proprietors and the employees are putting their best efforts to make good quality products available to
the customer at a low price, paying its shareholders a good amount of dividend and the employees reasonable
remuneration. This contributes to the successful operation of the business with increased profits overtime. The
companies Foundation become stronger and it earns a good reputation in the society it utilise its profit to finance
its growth and expansion requirements.

18. A person repairs scooters on roadside. How will you describe this activity?
19. Nitin is a salesman and sells mobile phones on behalf of his employer. What will be his remuneration?
20. ABC Limited is planting trees on the roadside it is trying to achieve.……. objectives of the business.
21. Business risk is not likely to arise due to:
a) change in government policy
b) Good management
c) employee’s dishonesty
d) power failure
22. Why is mining called a primary industry?
23. The minimum number of members in A cooperative society is...........
24. Which form of business is suitable for a tailoring shop?
25. “Arora brothers is a firm formed for the construction of a shopping mall.” Identify this type of partnership.
26. Yamuna Limited invited general public to subscribe for its public issue of rupees 5 crore shares through issue of
prospectus however the company received application for rupees 4 crore shares. Can the company proceeds with
allotment of shares?
27. Disinvestment of PSEs implies sale of equity shares to public investing in new areas buying shares of PSEs closing
down private sectors
28. A government company enjoys maximum autonomy. True/false
29. Name the organisation which is formed by passing a special act of parliament of state legislature.
30. Centralised control in MNCs implies control exercise by:
a) Branches
b) subsidiaries
c) headquarters
d) Parliament
31. The owner of Govinda fertilizers, Rihan open a current account in SBI, the customer can often withdraw money
from the current account only up to the Amount deposited in it. One day he needed money more than the balance
in the account, he was worried about how to arrange the money. one of his friend told him that the customer
having a current account in the bank can get the permission to withdraw money more than the balance in the
account after making an arrangement with the bank.
Identify which type of account facility provided by the bank referred to in the above case.
32. A transport Company took an accident insurance policy for all the vehicles. A truck of that company caring orange
met with an accident due to that accident there was no damage to oranges but oranges were unloaded from that
truck and reloaded to another due to time wastage in unloading and reloading the oranges got spoilt.
Will the company get compensation for loss of oranges from the insurance company or not? Which principle is
related with this case?
33. Madhav took a fire insurance policy of rupees 2000000 for his factory at the annual premium of rupees 24000 in
order to avoid premium more than this amount he did not disclose that highly explosive chemical are being
manufactured in his factory due to fire his factory gets severally damage the insurance company refused to make
the payment for claim as it because aware about the highly explosive chemical.
which principle is related with this case?
34. Hari has taken a loan from Ram against the security of his factory. Can Ram take a fire insurance policy of that
factory?
35. XYZ is specialist in Consultancy Service, the company makes software for a reputed Bank of USA, it is specialist in
making accounts for that Bank to carry on this work. XYZ limited hires professionals like engineers, CA etc. who are
very competent in providing such service.
Identify the type of business service provided by xyz Limited.
36. Use of ATM to withdraw money is an example of:
a) B2B commerce
b) B2C commerce
c) C2C commerce
d) C2B e commerce
37. This is not a benefit of e-business:
a) convenience
b) low personal touch
c) Global reach
d) Customer satisfaction
38. Zeenat has recently completed his course in fashion designing for NIFT ,now her father wants her to do something
creative he has no consideration for earning money he wants that she should teach fashion designing to those girls
who have great interest in it but have failed to get admission to the fashion designing course because of their poor
financial position, his aim is to help the girls from poor families , so he gave rupees 10 lakh to Zeenat to establish a
fashion designing centre 50 girls could take admission in the centre. Zeenat announced nominal fees to be charged
for admission within one week of the opening of the centre all the seats were filled, after getting training in the
centre it is become easy for the girls to get jobs in the market. Within a few months Zeenat Centre become popular
she spent 5 lakh out of the total 10 lakh on infrastructure and other things and the remaining 5 lakh She deposit in
the savings account. One of her friends was a bank employee she advised Zeenat that instead of keeping 5 lakh in
the savings account she could keep them in fixed deposit account but Zeenat replied that she would need money
anytime and so she could not keep her money in fixed deposit account then her friend told her that she could
deposit her money in such a bank account which would serve the purpose of both the savings account and fixed
deposit account, from this account, she could withdraw money as and when needed and a definite amount would
continue to get automatically transfer to fixed deposit account. Zeenat open the account with the bank.
Identify and explain the type of bank account which Zeenat’s friend advising her to open in the bank. Explain other
two types of bank accounts also.
39. Only sale or exchange of goods and services for profit is business do you agree with the statement give reason in
support of your answer.
40. Mohan, Sarthak and Dheeraj three partners in a firm the name of the form is 'Friends Pustak Bhandar’ the latest
books of almost all subjects remain available at the Pustak Bhandar. All three partners decide that 10% of the total
profit of the firm would be distributed among the poor children every year, this has a very positive effect on the
Goodwill of the firm. Dheeraj is a Renault businessman who allowed the use of this name by the firm but does not
contribute capital, Sarthak had contribute capital to the form but he does not participate in the management of the
firm, Mohan actively participate in the management and does business on behalf of other partners.
Explain what types of partners Mohan, Sarthak and Dheeraj.
41. Unique enterprise is dealing in auto spare parts with the expansion in business the enterprise found that the
decisions are delayed and level of coordination is coming down the CEO of the company called for a meeting of all
the managers Ayush a newly appointed manager suggested that company should never its own interest so that all
the employees can interact and pass important information to each other through internet even short meeting of
different department can be conducted through video conferencing to take fast action the so like the idea and
installed an internet connection for connecting all the employees online.
which type of e-business is suggested by Mr Ayush explain. And explain other three modes also.
42. Aditya gets his house issued against fire of rupees 10 lakh with insurance a and for rupees 500000 with insurance b
a loss of rupees 3 lakh occurred how much compensation can we claim from a and b why?
43. Nanak Limited, a foreign company e started its business in underdevelopment country the size of the business is
quite large the company has plenty of resources it employs thousands of people in the Undertaker element country
the raw materials used by the company are readily available here however since there was not demand for these
raw materials near the producer were unable to get the best price for it due to this reason the producer were
discouraged some local Businessman used to act R B trade Li earlier but now they have corrected themselves the
reason for their becoming better is competition with the foreign company now there arbitrary approach has and all
together Nanak Limited is using completely the latest technology in its various business activities as a reserve the
local people also have got the opportunity to learn the new technology because of using the modern technology
and doing production at a large scale the company’s cost of production is very low because of its Heels size and
status the company occupied a dominant position in the market and took over some domestic forms
Which type of business enterprise is referred to in the above para?
state any five features of the enterprise identified in (a) by quoting the lines from the above para.
44. Geeta Industries Private Limited is a large company which produce agriculture products like sugarcane cotton
exacta instead of selling this agriculture products in the market the company uses this as raw materials to produce
sugar and cloth in its own established sugar mill and cloth mean at some ruler area where these Where are high in
unemployment in this way the company provided employment to about 200 local people too.
which type and sub type of industries are related to the different products described in the above para explain
45. Explain the meaning of followings
46. RTGS and NEFT EFT Bank draft
47. Why are e-business and Outsourcing referred to as the emerging modes of business discuss the factors responsible
for the growing importance of these trends. 6
48. Manjeet Private Limited is a reputed company manufacturing computers the company is earning a a considerable
profit both the proprietors and the employees are putting their best efforts to make good quality products available
to the customer at a low price paying its shareholders a good amount of dividend and the employees reasonable
remuneration this contributes to the successful operation of the business with increased profits overtime the
companies Foundation become stronger and it earns a good reputation in the society it utilise its profit to finance
its growth and expansion requirements explain the role of profit in business to Manjeet private limited by quoting
the lines from the above para 6
49. Explain the concept of business risk and its causes 5
50. What is meant by incorporation of a company list the steps required to taken for incorporation of a company. 5
51. A group of people in a locality of Delhi used to go for a walk in the morning after the war they would sit together
and discuss the subjects like politics the non-litigation elections market price of different goods acceptor there were
about 50% in this group one day instead of other subjects their focus on discussion was market price of different
goods during the discussion the impresses let on the point with was that goods become very costly by the time they
reach the customer after getting transported from the producer consequently everyone’s budget is getting disturb
to get rid of this problem some people suggest that they should join together to form a society the society would
sell the goods to all the members as per their requirement after buying them in large quantity directly from the
producer this suggestion was appreciated by all of them the they all become member of the society and increased
other people also to become its members in no time hundred members assembled and the society was formed the
idea of forming the society immediately proved to be successful now their budget becomes balanced a special
characteristic of this society was that apart from its member it also sold goods to the other people of the society at
cheaper rates all of them were very happy with the formation of the society.
Identify and explain the type of society formed by them
Under what act the society must have been formed
What is the library of the members of the society so formed?
explain any one merit of the society so formed. 6
52. Shiv co Limited an American company is manufacturing a high quality products which is very popular in America the
company is searching for the possibilities of exporting its product to foreign countries after a throat search on the
interest it arrived at the conclusion that India can be a good market for its product but the company is unaware of
the distribution system in India now the company is looking for search a company which is already established in
India and has a strong distribution system once again she it search on the interest that found that there was an
Indian company named Narayan Limited which was facing service financial constraints but it had a very strong
distribution system shipco Limited negotiate with Narayan Limited and both the companies made an agreement to
jointly run their business in this way the American company with the help of Narayan Limited got a good
experience of entering the foreign market
Identify the type of business enterprise formed by merging Narayan Limited with shipco Limited
state any four features of such business enterprise

BUSINESS STUDIES - CLASS XII

Practice set B

Time: 1.5h MM40

Section A (Objective Type/ MCQ)


(1 mark each to be answered in one word or a sentence)
53. Chandan is a salesman and sells mobile phones on behalf of his employer. What will be his remuneration?
54. Kishan Limited is planting trees on the roadside it is trying to achieve.……. objectives of the business.
55. Business risk is not likely to arise due to:
a) Change in government policy b) Good management

c) Employee’s dishonesty d) Power failure

56. Which form of business is suitable for a tailoring shop?


57. “Singh brothers is a firm formed for the construction of a shopping mall.” Identify this type of partnership.
58. Vishnu Limited invited general public to subscribe for its public issue of rupees 10 crore shares through issue of
prospectus however the company received application for rupees 8 crore shares. Can the company proceeds with
allotment of shares?
59. Disinvestment of PSEs implies sale of equity shares to public investing in new areas buying shares of PSEs closing
down private sectors
60. Centralised control in MNCs implies control exercise by:
a) Parliament b) subsidiaries

c) headquarters d) Branches

61. A transport Company took an accident insurance policy for all the vehicles. A truck of that company caring Mangoes
met with an accident due to that accident there was no damage to Mangoes but Mangoes were unloaded from
that truck and reloaded to another due to time wastage in unloading and reloading the Mangoes got spoilt.
Will the company get compensation for loss of Mangoes from the insurance company or not? Which principle is
related with this case?
62. RADHA is specialist in Consultancy Service, the company makes software for a reputed Bank of USA, it is specialist
in making accounts for that Bank to carry on this work. RADHA limited hires professionals like engineers, CA etc.
who are very competent in providing such service.
Identify the type of business service provided by Radha Limited.
Section B (Short Answer I)
(3 marks each to be answered in 50-75 words)

63. Sita has recently completed his course in fashion designing for NIFT ,now her father wants her to do something
creative he has no consideration for earning money he wants that she should teach fashion designing to those girls
who have great interest in it but have failed to get admission to the fashion designing course because of their poor
financial position, his aim is to help the girls from poor families , so he gave rupees 20 lakh to Sita to establish a
fashion designing centre 100 girls could take admission in the centre. Sita announced nominal fees to be charged
for admission within one week of the opening of the centre all the seats were filled, after getting training in the
centre it is become easy for the girls to get jobs in the market. Within a few months Sita Centre become popular
she spent 5 lakhs out of the total 20 lakhs on infrastructure and other things and the remaining 10 lakhs. She
deposit in the savings account. One of her friends was a bank employee she advised Sita that instead of keeping 10
lakh in the savings account she could keep them in fixed deposit account but Sita replied that she would need
money anytime and so she could not keep her money in fixed deposit account then her friend told her that she
could deposit her money in such a bank account which would serve the purpose of both the savings account and
fixed deposit account, from this account, she could withdraw money as and when needed and a definite amount
would continue to get automatically transfer to fixed deposit account. Sita open the account with the bank.
Identify and explain the type of bank account which Sita’s friend advising her to open in the bank.
64. Vrindavan enterprise is dealing in auto spare parts with the expansion in business the enterprise found that the
decisions are delayed and level of coordination is coming down, the CEO of the company called for a meeting of all
the managers Nanak a newly appointed manager suggested that company should never its own interest so that all
the employees can interact and pass important information to each other through internet even short meeting of
different department can be conducted, through video conferencing to take fast action. The CEO liked the idea and
installed an internet connection for connecting all the employees online.
Which type of e-commerce is suggested by Mr Nanak? Explain.
Section C (Short Answer II)
(4 marks each to be answered in about 120 words)

65. Simran Industries Private Limited is a large company which produce agriculture products like sugarcane cotton etc.
instead of selling this agriculture product in the market the company uses this as raw materials to produce sugar
and cloth in its own established sugar mill and cloth mill at some rural area where these was a high unemployment.
In this way the company provided employment to about 1000 local people.
To which type and sub type of industries are related the different products described in the above para? Explain
66. Explain the meaning of followings
a) RTGS b) NEFT c) EFT d) Bank draft
Section D (Long Answer I)
(5 marks each to be answered in about 150 words)

67. Explain the concept of business risk and its causes.


68. What is meant by incorporation of a company? List the steps required to taken for incorporation of a company.
Section E (Long Answer II)
(6 marks each to be answered in about 200 words)

69. A group of people in a locality of Bareilly used to go for a walk in the morning after the walk they would sit together
and discuss the subjects like politics, demonetisation, elections market price of different goods etc. There were
about 60 persons in this group. One day instead of other subjects their focus on discussion was market price of
different goods during the discussion, the emphasis laid on the point was that goods become very costly by the
time they reach the customer after getting transported from the producer. Consequently, everyone’s budget is
getting disturb. To get rid of this problem some people suggest that they should join together to form a society the
society would sell the goods to all the members as per their requirement after buying them in large quantity
directly from the producer. This suggestion was appreciated by all of them. They all become member of the society
and encouraged other people also to become its members, in no time hundred members assembled and the
society was formed. The idea of forming the society immediately proved to be successful. Now their budget
becomes balanced. A special characteristic of this society was that apart from its member it also sold goods to the
other people of the society at cheaper rates all of them were very happy with the formation of the society.
a) Identify and explain the type of society formed by them.
b) Under what act the society must have been formed?
c) What is the library of the members of the society so formed?
d) Explain any one merit of the society so formed.

BUSINESS STUDIES CLASS XI

ANNUAL YEARLY EXAM 2019-20

Time: 3 hrs Max. Marks: 80

General Instructions:
i. Marks fur questions are Indicated against each question.
ii. Question No. 1-20 are very short answer questions carrying 1 mark each.
iii, Question No. 21-25 are short answer questions carrying 3 marks each.
iv. Question No. 26 28 are also short answer questions carrying 4 marks each
v. Question No. 29 31 are long answer questions carrying 5 marks each.
vi. Question No. 32 34 are lung answer questions carrying 6 marks each.

Section A (Objective Type/ MCQ)


(1 mark each to be answered in one word or a sentence)
1. Insurance belongs to which of the following types of industry? [1]

a. Primary b. Secondary c. Tertiary d. None of the above

2. What is plastic money? [1]

3. Which form of business organisation provides limited liability to its members and unlimited liabilities to its head? [1]

a) Sale proprietorship b. Partnership c). Cooperative society d. Hindu undivided family

4. Which kind of deposit is raised directly from the public? [1]

5. Shyam Is studying about the oldest form of public sector. He notices that the profit earned out of that form of Public
sector enterprise is. [1]

a) donated completely b. deposited In an account with a private bank c. deposited In the government treasury d. deposited
In the account of finance ministry

6. What is OPC? [1]

7. Which of the following does not come under the World Bank group? [1]

a) Multilateral Investment Guarantee Agency b. International Monetary Fund c. International Development Association d.
international Finance Corporation

8. Explain the term joint venture. [1]

9. Which of the following is included in the Classification itinerants?

a. Hawkers b. Street traders c) Cheap jacks d. All of the above

10. Explain one democratic principle followed in a cooperative society? [1]

11. What relates to the voluntary efforts on part of the businessman to contribute to social well-being? [1]

a. Business ethics b. Social responsibility c. Social interest d. Social awareness

12. In which type of account if the deposit exceeds a particular limit. it is transferred to a fixed account? [1]

a. Multiple Option Deposit Account b. Fixed Deposit c. Recurring Deposit Account d. Current Deposit Account

13. Cottage Industries are well-known industries in rural areas. State any two features of the same. [1]

14. 1demlfythe type of requirement of finance on the basis of the following examples: [1]

15. Eshaan wants to start his own enterprise after being inspired by other start-ups. He requires capital for setting up a
business. Therefore, he reaches out to individuals who are keen an investing in start-ups. Identify the funding option used
in this example. [1]

a. Angel investment b. Self-funding c. Win in a contest d. Funding from business

16. What do you mean by intangibility of services? [1]

17. Shahid Ltd. is a manufacturer of fine chocolate. It has a website through which only departmental stores and
wholesalers can order chocolate; The company supplies chocolates to almost all the departments Stores in India. Identify
the type of transaction reflected in the question. [1]

18. What is the main cause of pollution? [1]

19. Which of the following is the first step of the process of entrepreneurship? [1]

a. Raising start-up capital b. Identifying opportunities c. Generating and evaluating Ideas d. Self-discovery
20. Sheena opens a hotel in Mumbai. Her Sister, Shalu, who is her competitor. also starts a new hotel bang opposite. The
only difference between them is that Sheena has adequate finance but Shalu is struggling to raise finance. Will this have
any effect on Shalu's hotel business? Give reason. [1]

Section B (Short Answer I)


(3 marks each to be answered in 50-75 words)

21. The Singh family has a large-scale joint Hindu family business in Punjab. One of the member of the family adopts a son
who is six Months old. Can the adopted son be a part of the joint Hindu family business. Give reason in support of your
answer.

22. Explain any two reasons for controlling pollution. [3]

23. The quality of the environment is important for all of us; thus. it is our collective responsibility to protect it from getting
spoiled, whether it is the government or consumers or business firms. In the given context. state same laws introduced by
the government on protection of the environment ln India [3]

24. Dharam, a skilled potter, has a cottage Industry named Bazar. It is located in a remote village named Shiroshi near
Bengal. Even after making pots which are better than the ones found In the international market, he is unable to earn
money by selling them. What is the problem he is facing? Explain. [3]

25. 'The scope of international business is wider than that of international trade.‘ Justify. [3]

Section C (Short Answer II)


(4 marks each to be answered in about 120 words)

26. Name the type of Itinerant who displays goods in shops or temporary tents. They keep changing their business from
one locality to another but not very frequently. Explain the features of this type itinerant. (4)

27. Arjun has an enormous unused area near his house In a Village. He asks his friend if he could use it for any purpose
which would earn him some money for his family. His friend suggests that he allow traders to stock their material for a
certain period of time and ln turn Charge them for the same.

a. Which term IS being referred to In the above paragraph? Define the term. [1]

b. State its various functions. [3]

OR

Air India. Life Insurance Corporation, and Oil and Natural Gas Corporation are examples of which form of public sector
enterprise? Discuss Its features.

28. ’A Society has its own objectives for the promotion of economic interests of Its members ln accordance with
cooperative principles.’Explain the concept being referred to In the above Statements? State its four characteristics. [4]

Section D (Long Answer I)


(5 marks each to be answered in about 150 words)

29. Raju was learning about different types of companies. He came across a company wherein 60% of the paid-up capital
was held by the central government. Identify the type of enterprise reflected in this case. Explain its features. [5]

30. Chumbak is a store started by Sabujit Palai in Mumbai. Due to the amazing response by customers, he started 5 new
Stores at different places in India. All these Stores sell standardised goods at the same price. Identify the type of retail
business reflected in this case. Write its advantages. (Any 4) [5]

OR What are mail order houses? Explain its advantages (Any 4)


31. "A nation receives enormous benefits when it engages in international trade." Do you agree with this statement?
Explain the benefits that a nation receives when it engages in International business. [5]

OR

Differentiate between domestic trade and International trade on the basis of: a. Nature of market b. Business regulation
and polices c. Currency d, Type of customers e. Mobility of factors of production.

Section E (Long Answer II)


(6 marks each to be answered in about 200 words)

32. A customer’s preference for a product declines after a certain period because of some competitor‘s policies or change
in taste. In such cases. it is difficult for a business person to currently anticipate consumer preferences. As a result. he or
she always faces the risk of unforeseen fluctuations in demand. This leads to a possibility of occurrence of loss in the
business.

a. Which aspect of business is cited in the example? [2]

b. State the nature of the aspect of business mentioned above. [4]

33. Westernisation has impacted India and ns people in an enormous way. As a result many other nations have also
become aware of various products available in India for their usage. Thus. to attract foreign customers, the government has
set up various organisations in the country which would promote a country’s foreign trade. Name these organisations and
explain each of them briefly. [6]

OR

A famous company produces a phone every year. The parts of this phone are produced in different countries by different
companies. The under body of the phone ls produced in China, whereas the hardware (With OS) is produced in France. The
phones are assembled in the home country USA. All product specifications and production processes are based on
contracts With the producer companies in the respective countries.

a] Identify the made of entry into international business highlighted In this case.

b] Explain the concept and write two advantages and disadvantages each.

34. Kirti along with her class visited an industrial area on their college field trip. She was amazed with the sheer size of the
firm and the machinery used for the production. She was excited and wanted to update her father [small-time
businessman] regarding the same. She asked her father to set up their business in a similar' fashion. However, her father
Informed her that it would not be possible for them to do so because of the various problems they face being a small-scale
business. Explain in detail any three problems faced by such small-scale firms. [6]

OR What is entrepreneurship? Explain its characteristics. [Any 5)

VIDYA BHAVAN PUBLIC SCHOOL, BAREILLY


FINAL EXAMINATION 2018-19
Business Studies
CLASS XI
Time: 3 Hours Marks: 90

1. Why is business considered as an economic activity? 1 mark


2. The Karta in Joint Hindu Family Business has
(a) Limited liability (b) Unlimited liability
(c) No liability for debts (d) Joint liability 1 mark
3. Name the organisationwhichis formed by passinga special Act of Parliament ofStateLegislature. Imark
4. Give any one difference between ethics and law. 1 mark
5. What is meant by trade credit? 1 mark
6. Narayan Traders Ltd. is a company that deals in the wholesale business of rice. The finance manager of the
company, Mr. Radheshyam Das arranges unsecured short-term finance for the company. The rate of interest to be
paid on this finance is more than the banks rate of interest.
Identify the source of finance. 1 mark
7. There is such a source of business which requires no one to perform its activities. In it the customer himself
receives the goods and himself makes the payment. This source is generally used for soft drinks.
Identify it. 1 mark

8. It is an instruction to the captain of the ship that the specified goods after their custom clearance at a designated
port be received on board. Name it. 1 mark 9. Discuss the economic objectives of business. 3 marks
10. What is Public Private Partnership? Explain its any two features . 3 marks
11. Zeenat has recently completed her course in Fashion Designing from NIFT. Now her father wants her to do
something creative. He has no consideration for earning money. He wants that Zeenat should teach fashion
designing to those girls who have great interest in it but have failed to get admission to the Fashion Designing
Course because of their poor financial position. His aim is to help the girls from poor families. So he gave her 10
lakh to establish a Fashion Designing Centre. 50 girls could take admission in this centre. Zeenat announced
nominal fees to be charged for admission. Within one week of the opening of the centre, all the seats were filled.
After getting training in this centre, it became easy for the girls to get jobs in the market. Within a few months
Zeenatl s centre became popular. She spent 5 lakh out of the total 10 lakh on infrastructure and other things, and
the remaining 5 lakh she deposited in the Savings Account of a bank. One of her friends was a bank employee. She
advised Zeenat that instead of keeping 5 lakh in the Savings Account, She should keep them in a Fixed Deposit
Account. But Zeenat replied that she would need money any time and so she could not keep her money in a Fixed
Deposit Account. Then her friend told her that she should deposit her money in such a bank account which would
serve the purpose of both, the Savings Account and the Fixed Deposit Account. From this account she could
withdraw money as and when needed and a definite amount would continue to get automatically transferred to
the Fixed Deposit. Zeenat opened the account with her bank.
(a) Identify and explain the type of Bank Account which Zeenat's friend advised her to open in the bank.
(b) State any one value being conveyed to the society from the above para. 3 marks 12. Manchanda Ltd. deals
in footwears. The company has 200 •shops at different places of the country. The speciality of the business of this
company is that at all its shops the goods available are of the same type, and their prices are also the same. All sales
are made strictly on cash basis.
Identify the type of retail trade done by Manchanda Ltd. Also state its any two features. 3 marks
13. Explain briefly the two trends that are shaping business today. 3 marks
14. Describe the role of following in promotion of small industries in India.
(a) National Small Industries Corporation (NSIC)
(b) District Industrial Centres (DICs) 3 marks 15. MVT Construction Pvt. Ltd. deals in constructing building,
bridges, roads and dams by using cement, steel, bricks and wood. There are 1000 employees in all working in this
company. The managing director of the company, Mr. Shyamsundar, takes full care of the quality of work done.
Recently, the company got a
contract of constructing five big buildings, two bridges, one long road and one dam. The company has got special
division also, which owns one hundred trucks. These trucks are used for transporting goods on hire This division is
working quite successfully under the supervision of the divisional manager, Radhika Dasi. Identify and state two types
of industrial activities from the above para by quoting the lines.
16. Differentiate between the following: 4 marks
(t) Bill of lading and airway bill 4 marks
(ii) Pre-shipment and post-shipment finance
17. Wizard Digitek is running a website for selling gift items. It gets orders from all over the country. Recently, the
company got the order of 500 pieces of a particular gift item from a company for its employees. Wizard Digitek
arranged the items and delivered it on time but the company returned the whole lot and mentioned that they had
ordered some other item, and not the one which was delivered. Wizard Digitek had to accept the rejected order back
since they were not having any proper record of the item selected by the company. (a) Identify the kind of e-business
risk faced byWizard Digitek.

(b) Howcan Wizard Digitek avoid this kind ofrisk? 4 marks


18. Busiriess has various social responsibilities towards different interest groups. Identify and explain the relevant interest
group in the following cases:
(i) To maximise the market value of shares
To develop employees' skills through training and education
(ii) To avoid unfair trade practices such as under-weighing, poor quality of goods and services, misleading advertising,
etc.
(iii) To work and contribute towards the rescue and relief work in case of flood, earthquake, etc. 4 marks 19. Ram,
Kabir and Gurpreet are three friends who belong to the same village. They have completed their MBA education
from 11M, Ahmedabad. They want that the country should benefit from their education. With this aim they want
to do such a business which will generate more employment and output, mobilise local resources, and contribute
to balanced regional development. For this they set up a small scale industrial unit in their own village.
(a) Do you think they will be able to contribute to the development of rural, backward areas of the county? Explain.
(b) State anyone value promoted by the three friends. 4 marks
(c) 20. Shonali Sharma, after completing her MBA, wants to help her father, Mr. Shiv Sharma, in his business. The
business had a limited capital investment. Shonali wanted to use the modern business techniques in every area Of
business, namely, purchase, sales, production, finance, etc. In fact, she wanted to implement the methods, which
she had learnt in her MBA course. As soon as she started adopting the latest techniques, the workers began to
protest and resist the changes. So she became disappointed and left her father's business. She started working in an
MNC. Mr. Shiv Sharma was unable to assume the responsibility of all managerial tasks such as purchasing, selling,
financing, etc. Good workers started leaving the organisation. lhe goodwill of the business in the market went on
declining. In no time, the liabilities of the business became many times more than the assets. On account of the
pressure exerted on him by the creditors, Mr. Shiv Sharma had to repay the debts of the business by disposing off
his personal properties.
(a) Identify theform of business organisation discussed in the above para.
(b) Quoting the relevant lines from the para explain any four limitations of the form of business5 marks organisation
identified in (a).
21. Ashish took a marine policy to cover the goods exported by him. Under the policy goods have been insured against
damage likely to be caused by sea-water. During the voyage a hole was caused in the bottom of the ship. Through this
hole sea water entered into the ship which damaged the goods insured. Can Ashish claim compensation for the loss?
Explain the relevant principle of insurance.
22. The Directors of a company have decided to modernise the plant and machinery at an estimated cost of rupees
onecrore. Stateanytwomeritsand three demeritsofissuingequitysharesfor the purpose. 5marks
23. Once Mr. Narendra was sitting at the shop of his friend Mr. Shiv Sharma. Narendra observed very carefully his friend's
transactions with the customers. He noticed that the customers were buying goods on different terms and
conditions. One of the customers, Ms. Geeta was insisting on buying goods on credit. But Shiv Sharma paid no
attention to her at all. Ultimately, he ended by saying that she would have to make the payments when the goods
were delivered to her. Geeta agreed.
After this, another customer, Ms. Sujata came, who is a resident of another city. She wanted to take the goods
bought by her in a train. So she asked Shiv Sharma to send goods up to the railway station.
Thereafter, Ms. Rita came to buy goods. When Shiv Sharma qouted her the price of the goods, she asked how the
price could be so high. Shiv Sharma explained to her that the price was inclusive of insurance and

freight. She got satisfied and ordered a large quantity of goods.


There were several documents lying on Shiv Sharma's table. At the bottom of all the documents was written a
phrase. When Narendra asked about it, he told him that the phrase was there about correcting the omissions, if
any. While sitting at Shiv Sharma's shop, Narendra learnt about several terms of trade.
(a) Identify and explain the terms of trade related to the different customers of Shiv Sharma by quoting the lines
from the above para.
(b) What is the phrase written at the bottom of all the documents? Explain. 5 marks
24. Krishna Pvt. Ltd. is facing the shortage of long-term finance as it is a period of depression in the economv.
The experts were consulted to determine the source of finance the company should raise. One financial advisor,
Mr. Ram, advised that the company should use such a security on which it has a tax advantage and there is no
dilution of control of the shareholders. Another finance specialist, Mr. Shiv advised that the company should not
issue any debt or equity security but raise such a source long-term finance which can redeemed in easy
instalments.
Quoting the relevant lines from the above para, identify and explain the sources of finance suggested by the two
specialists, Mr. Ram and Mr. Shiv. Also, state any two merits of each other than that mentioned in the above
para. 6 marks
25. Gopal Sharma and Balram Sharma are two brothers, who inherited some ancestral property. They decided to form a
Hindu Undivided Family (HUF) business consisting of four male members. Gopal Sharma is the elder brother. So he
became 'Karta l . The business took a loan of 20 lakh from Punjab National Bank having a maturity period of 5 years.
Due to poor financial position of the business, they were unable to repay the loan. They sold the ancestral property
for 10 lakh and paid the same to Punjab National Bank. They could not pay the balance amount of loan with
interest. The bank filed a case for recovery of the balance amount. Gopal Sharma pleaded the court that the loan
was taken for the purpose of business. Therefore, all the members of the business were liable to repay the loan. The
court held that all other members were responsible only to the extent of their share in business, and the business
property was already sold. However, Gopal Sharma, being Karta' would have to repay the balance amount even by
selling his personal properties. Gopal Sharma had to sell some of his personal assets to repay the balance amount
of bank loan.
(a) Is the court's decision justified? Give reasons in support of your answer.
(b) State any four other features of HUF businesses. 6 marks
26. Once a round of Election to the five Legislative Assemblies of the country was in progress. The different political
parties were putting in their best efforts to entice the people through their respective promises to them. There were
three main political parties contesting elections in the these states. One of the political parties made a promise that
if they came into power, they would set up such public sector enterprises in the states which will have the
partnership of both the public and the government. However, in these enterprises, the ownership of the
government shall not be less than 51 %. The setting up of these enterprises is done as per the provisions of the
Indian Companies Act, 2013. The financing of these enterprises is done jointly by both, the people and the
government. The second political party promised that if they came into power, they would set up such public sector
enterprises which will be completely under the ownership of the government. The burden of financing them will not
be put on the shoulders of the people, but they will be managed with the general budget. The third political party,
which was contesting the elections for the first time, promised that on coming into power they would set up such
public sector enterprises which will be fully financed by the government. However, there will be no bar to get loan
from the people to set up them. They will be set up as per the special Act passed by the Parliament or the State
Legislative Assembly.
On the basis of the above para, identify the type of public sector enterprises to be set up as being promised by the
three political parties. Also state any two merits of each of them. 6 marks
27. Shruti, Ekta and Divya are three neighbourhood friends who study in 11th standard (Commerce). It is their daily
routine to discuss in the evening the studies done in their respective schools. Because of this habit their knowledge
about all the subjects was more than the other students. One day, they were discussing about their most favourite
subject, Business Studies. Shruti said, "Today, we learnt about such a type of trade in which manufacturing and
trade takes place beyond the boundaries of one's own country, and the payment in this business is done in the
foreign currency." Ekta said, "Yes, this type of trade helps a country to earn foreign exchange and accelerate
economic growth." Divya said, "Our teacher told us about this type trade that the business transactions are subject
to rules, laws and policies, tariffs and quotas of multiple countries.
Such business involve higher risk of transit and blocking up of capital."
(a) About what type of trade was the discussion going on between the three friends?
(b) What do the three friends tell about the type of trade identified in (a)? State any two points each 6 marksother
than that discussed by them.

Q1. Explain the meaning of unlimited liability.

Q2. Name the type of co. which must have a minimum paid up capital of 5lakhs.

Q3. Identify a company which has no restriction of on transfer of shares.

Q4. What is meant by partner by estoppels?

Q5. Mr. Singh is in ‘lighting’ business for the post 15 years. To help his friend, Mr Yadav, a

beginner he projected himself as a partner before Mohd. Abdul, a whole sale dealer of

fancy lights. Mohd. Abdul gave Mr. Yadav the stock without asking for payment and gave

him credit limit of one month. Will Mr. Singh be liable to Md. Abdul if Mr. Yadav does not

pay him on time? Classify Mr. Singh’s role here along with an explanation.

Q6. Mr. Amit Kumar is interested in the floatation of a company. Briefly discuss the steps he

should take.

Q7. Discuss the reasons of superiority of joint stock company over sole proprietorship and

partnership.

Q8. Dhirubhai Chaurasiya operates a textile business. His family is joint and has a lot of

ancestoral property. All the 15 family members are a part of this business. He is the

eldest male member in the family so he heads the business. He is liable to all the

creditors of the business as he is the decision maker. Dhirubhai’s grandson has just born

a few days ago and he is also the member of the business.

(a) Which form of business is being undertaken by Dhirubhai Chaurasiya?


(b) Identify the features of this form of business based on the information given.

(c) Textile business is part of which type of industry according to you?

Q9. “Every day Amul collects milk from 2.12 million farmers (many illiterate) & converts the

milk into branded packaged products & delivers goods all over the country. The story of

Amul started in Dec, 1946 with a group of farmers been to free themselves from

intermediaries, gain access to the market & there by ensure maximum returns for their

efforts”

(a) From the above information, identify the form of business organization used by Amul.

(b) Also quote the line which suggest its features?

(c) According to you, Amul is part of which type of industry?

SECTION A (1 MARK EACH)


1. Which of the following does not characterise business activity?
(a) Production of goods and services
(b) Presence of risk
(c) Sale or exchange of goods and services
(d) Salary of wages
2. Which one of the broad categories of industries covers oil refinery and sugar mills?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of them
3. Which of the following cannot be classified as an auxiliary to trade?
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport
4. The occupation in which people work for others and get remunerated in return is known as
(a) Business
(b) Employment
(c) Profession
(d) None of them
5. The industries which provide support services to other industries are known as
(a) Primary industries
(b) Secondary industries
(c) Commercial industries
(d) Tertiary industries
6. The Karta in Joint Hindu Family Business has
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability
7. The structure in which there is separation of ownership and management is called
(a) Sole proprietorship
(b) Partnership
(c) Company
(d) All business organisations
8.Minimum number of members to form a private company is
(a) 2
(b) 3
(c) 5
(d) 7
9. . Application for approval of name of a company is to be made to
(a) SEBI
(b) Registrar of companies
(c) Government of India
(d) Government of the State in which Company is to be registered
10.A prospectus is issued by
(a) A private company
(b) A public company seeking investment from public
(c) A public enterprise
(d) A public company
11. Which one of the following types of enterprises are considered part or an extension of the ministry.
(a) Departmental undertaking
(b) Government company
(c) Private enterprise
(d) Statutory corporation
12. Which one of the following roles of the public sector is true after Industrial Policy 1991?
(a) Balance regional development
(b) Employment generation
(c) Privatisation
(d) Mobilisation of resources
13. Disinvestment of PSEs implies
(a) Sale of equity private sector/public
(b) Closing down operations
(c) Investing in new area
(d) Buying shares of PSEs
14. A government company is any company in which the paid-up capital held by the government is not
less than
(a) 49 per cent
(b) 51 per cent
(c) 50 per cent
(d) 25 per cent
15. The interference of the Government in the day-to-day working is the highest in case of :
(a) Departmental undertaking
(b) Government company
(c) Statutory corporation
(d) None of the above
SECTION B (2 MARKS EACH)
16.How would you classify business activities?
17.What is business risk? What is its nature?
18.What is the peculiar feature of the Construction Industry?
19.What is the purpose of PPP?
20.State the suitability of public private partnership.
21. Who defines the powers and functions, roles and regulations for a statutory corporation?
22.If registration is optional, why do partnership firms willingly go through this legal
formality and get themselves registered? Explain.
23.How does a cooperative society exemplify democracy and secularism?
24.Compare the status of a minor in a Hindu undivided family business with that in a partnership firm.
25. Explain the following term:
a. Common seal b) Perpetual succession
SECTION C (3 MARKS EACH)
26.What are the types of utilities created by a business?
27.What are the types of utilities created by a business?
28.State any three situations wherein Government company is the most suitable form of organising public enterprises.
29.Distinguish between a Memorandum of Association and ‘Articles of Association’.
30.Is it necessary for a public company to get its share listed on a stock exchange? What happens if a public company going
for a public issue fails to apply to a stock exchange for permission to deal in its securities or fails to get such permission?

SET-B
SECTION A (1 MARK EACH)
1. Modern concept of business interest on
a) earning huge profit
b) Bearing risk
c) providing services
d) profit with service
2. Canara Bank opened a new branch in Bangalore it is fulfilling which of the following organisational objective
a) survival
b) profit
c) growth
d) innovation
3. Name the type of manufacturing industry in which basic raw material is broken into different parts of produce finished
goods.
a) Analytical
b) synthetic
c) Processing
d) Assembly
4. Name the service which provide knowledge about new product to customer
a) Transportation
b) Banking
c) Insurance
d) Advertisement
5. On which date the “make in India” project was launched
a) 15 August 2014
b) 2 October 2014
c) 25th September 2014
d) 8 August 2016
6. Partnership between any two forms is called as
a) joint sector
b) PPP
c) joint venture
d) partnership firm
7. Which of the following enterprise formed by passing a special act in Parliament?
a) Departmental undertaking
b) Public Corporation
c) government company
d) private limited company
8. Public limited company comes under which sector
a) private sector
b) public sector
c) joint sector
d) PPP
9. When utmost secrecy is required which public sector enterprise is suitable
a) Public Corporation
b) government company
c) departmental undertaking
d) PPP
10. Metro is which form of enterprise
a) public limited company
b) private limited company
c) government company
d) PPP
11. “Make in India” project was launched on________
12. ____________ containing the term and conditions of partnership firm.
13. If a person want complete confidentiality in his business and want no interference of any other person then suitable
firm is________________
14. ______________ enterprise formed by passing a special act in Parliament.
15. Public limited company comes under ______sector.

SECTION B (2 MARKS EACH)


16.Name the economic activities in which following people are involved.
a) Bhuvan, Who is practicing as chartered accountant
b) Piyush running shop to sell auto spare parts
c) Rishav working as a manager in a Bank.

17. Business involved only sale and exchange of goods for profit. Do you agree with this? Give reason.

18. Name two Enterprises which are opening as departmental undertaking public corporations and government company.

19. What motivates a host country to give entry to to multinational companies?

20. Identify the type of public sector enterprises on the basis of following clause about it in each of the following cases and
also give an example of the same in real life.
(i) It doesn't hold majority shareholding by the community and neither does it accept any interference in the audit and
accounting form of the government but at the same time enjoys a high dividend distribution to its members in case of
profits.
(ii) It is a soul and heart of the government activities itself with per parliamentary accountability.

21. Post and Telegraph department is part of government ministry. It is fully managed control and financed by the
concerned Ministry the annual budget of ministry makes provision for the funds needed by department. The ministry is
answerable to the Parliament for the functioning.
(i) Name the sector under which the post and telegram department comes.
(ii) Name the kind of organisation it is and also the concerned Ministry.
22. Which form of business is suitable for following types of Business and why?
1. Beauty parlour
2. small retail outlet
3.hotel
4.shopping mall
5.medium size trading concern

23. Name the following: -


1. A person who learn singing and goodwill to benefit of partnership firm.
2. A business organisation with least legal formalities
3. An organisation where member associate together to promote mutual goals and Welfare of consumer
4. A type of industry to which manufacturing battery operated cars belongs to.

24. According to Partnership Act 1932 it is not compulsory for a partnership firm to get itself to register then why do
partners prefer to get the form register?

25. Abdul is a single owner of a shoe manufacturing business his business was suffering from continuous losses to receive
his business and to expand he took a loan of 20 lacs from Finance Company. In spite of starting new range of products and
great efforts by Abdul business continued to suffer losses this resulted in the declining Assets and mounting depth. Abdul
started defaulting on his repayment schedule. Finance Company served him final notice to repay the loan and settle the
account he proposed the finance company to take over the business Assets and clear their dues. Finance Company took
over the Assets of the business in part of settlement of their dues as the assets were not sufficient to settle the depths and
they claim the remaining amount from Abdul from his personal assets. Abdul refused to do so on the ground and loan was
taken for business and not buy him for personal use.
(i) Name the form of business organisation followed by Abdul.
(ii) Is the finance company justified in asking for remaining amount of Abdul personal assets? Justify your answer by giving
suitable feature of business organisation

SECTION C (3 MARKS EACH)


26. Mr Sumit Grover owns an ancient real house in Goa on the advice of his friend he converted it into a hotel after
renovation. The hotel was running is smoothly and revenue from the hotel help to increase his income. On his death the
property was inherited by his three sons elder son Raj, second Sameer and youngest son Rahul was continued the business
as joint Hindu family business.
(i) Name the law which govern the joint Hindu family business.
(ii) who among three brothers has right to control the business.
(iii) what will be the liability of three brothers.

27. Describe the legal status of a promoter.


28. "Earning of profit cannot be the objective of this any more than eating is the objective of living." Do you agree with this
statement? Give reason to support your answer.

29. Ram's father gifted him a cricket bat on his birthday. The cost of the bet was rupees 800. Few months later Ram sold it
to Gobind one of his school friend for rupees 850 he was very happy to earn a profit of rupees 50. He was boosted by this
transaction and after completing his studies, he formed a partnership business with his friend Gobind trading in bats and
other sports materials under the name of M/S Ram traders. Ram and Gobind both act like an agent as well as principle of
each other firm soon started earning good profit. Ram's father suggested them to spend some money on social
responsibility. They then decided to donate free sports goods to school which were financially weak.
a) Can the transaction between RAM and Gobind be termed as business transaction? Give reason.
b) Can the transaction between M/S Ram Trader and other persons be termed as business transactions? Give reason.
c) Which feature of partnership form is mentioned above?
30. Identify the form of public sector Enterprise in the following cases
(i) it is under the control of the concerned minister of the department.
(ii) It enjoys maximum autonomy in all management activities
(iii) LIC and Air India are examples of this form of enterprise.
(iv) Minimum 51% of the paid up capital is held by the government.
(v) The Enterprise is most suitable when national security is concerned.
(vi) These enterprises are set up under a special act of parliament.

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