CBSE 11 | BUSINESS STUDIES FCT 2 80 MARKS | 3 HOURS

SECTION A – OBJECTIVE TYPE QUESTIONS 20 Marks

1. "The goods were not loaded on the ship as they did not get the custom clearance due to lack
of one of the main documents." Identify the document
(a) Bill of clearance (b) Custom bill (c) Shipping bill (d) Bill of exchange
2. Match the following
(i) Geographical indication (a) brand given legal protection
(ii) Patent (b) conferred upon the creator of literary, artist & music
(iii) Trademark (c) agricultural and natural products
(iv) Copyright (d) protection of scientific inventions
3. The beneficiaries of retained earnings are also known as
(a) Residual owners of the company (b) Loan capital of the company
(c) Short term capital of the company (d) Ploughing back of profits
4. What does Debenture holders get in return of their debt in company
(a) Dividend (b) Interest (c) Profit (d) Loss
5. Companies generally invite public deposits for a period up to
(a) 5 years (b) 4 years (c) 3 years (d) 10 years
6. It is the responsibility of every business to provide accurate & full information about its
working as well as schemes of future growth. Identify interest group of social responsibility
(a) consumers (b) employees (c) investors (d) government
7. In this dimension of e-business the different departments of a firm constantly interact with
each other for achieving efficiency in operations
(a) B2B (b) C2B (c) Intra-B (d) C2C
OR A company appoints ____________ to cover risk of not fulfilling Minimum Subscription
(a) Underwriters (b) Insurer (c) Merchant Banker (d) None of these
8. “PPF” in Postal service stands for
(a) Pre postal funds (c) Public provident fund
(b) Paid postal facility (d) Private public funds
OR The full form of NEFT is ______________________________________.
9. “Global enterprises may issue equity shares, debentures or bonds to public” identify feature
(a) Foreign collaboration (b) Huge capital resource
(c) Product innovation (d) Centralized control
10. Which document is subsidiary of the Memorandum of Association?
(a) Prospectus (b) Articles of association (c) Consent of directors (d) Table A
11. The profit distributed among the shareholders is known as
(a) incentives (b) bonus (c) interest (d) Dividend
12. A fixed rate of interest is paid by the borrowers on __________ funds. (Owned / Borrowed)
13. Assertion: Social Responsibility is not fulfilled without satisfying Legal Responsibility
Reason: Social Responsibility is a narrower concept.
OR Which of the following has professional management?
a. Sole Proprietor b. Cooperative Society c. HUF d. None of these
14. ________are neither the agents nor the trustees of the company
(a) Board of Directors (b) Promoters (c) Shareholders (d) None of these
15. ____________ protects you from political and commercial risk in international business.
a. DGFT b. RCMC c. ECGC d. EPC
16. ____________ type of itinerant operates on fixed days only.
a. Hawker / Peddler b. Market Trade c. Street Trader d. All of these
OR Goods and Service Tax was made applicable from ___________________.
17. The hindrance of time is solved by which auxiliary to trade?
a. Transportation b. Warehousing c. Advertising d. None of these
18. In an HUF _________ has limited liability.
a. Karta b. Co Parceners c. Both (a) & (b) d. None of these
19. __________ is readily available for creditworthy and regular customers.
a. Bank Credit b. Trade Credit c. Bank Overdraft d. Corporate Deposit
20. ___________________ is also called the Birth Certificate of a Joint Stock Company.
21. Direct control over operations & absolute decision-making power is available in
(a) Joint Stock Co. (b) cooperative society (c) Sole proprietorship (d) HUF
SECTION B – SUBJECTIVE TYPE QUESTIONS 60 Marks
Three Marker Questions (Attempt any 5) [15]
1. Explain any three ways of funding a startup.
2. Differentiate between Owned Funds and Borrowed Funds.
3. Differentiate between Traditional Business and E-Business.
4. What is a Bill of Exchange in International Trade? Explain its two types.
5. Explain three demerits of a Statutory Corporation.
6. Discuss the services offered by a wholesaler to a manufacturer.
7. Write a short note on Multiple Chain Stores.
Four Mark (Attempt any 3) [12]

8. Pluto Electricals Ltd. has been successfully manufacturing electrical accessories for the
past ten years. As the profit margin is good, the company has been managing all the
financial requirements of the business through the profits reinvested in the business.
Identify the source of finance being mentioned in the given case and explain any three
demerits.

9. Home Foods Pvt. Ltd. deals in grocery items of daily domestic usage. Its business is spread
throughout Delhi. The company's 20 stores are providing their services to the residents of
Delhi. All the business activities of this company are done through internet. Its main
activities are obtaining information about goods, receiving orders of goods, making
payments, receiving payments, inventory management, product development, etc. The use
of internet in the business activities has resulted into reduced costs of business
transactions. The customer also can shop sitting at home or office. They can access the
internet to buy goods and services. The use of internet has considerably reduced
dependence on paper work for the company.
(a) Which system of business is being followed by Home Foods Pvt. Ltd.?
(b) State any three benefits of the system of business identified in (a) by quoting the lines
from the above para.

10. What do you mean by the term Feasibility Studies? Explain the types of feasibility studies
that are carried out in the promotion stage of formation of company along with examples.

11. Gas authority of India Ltd. (GAIL) is carrying on various projects of energy and power.
Majority of its shares are held by the government of India. It was registered under the
previous Companies Act. It enjoys all the characteristics of a company. The board of
directors are appointed by the government. The Board and shareholders are responsible for
the efficient working of the company. The company prepares its annual report and submit
to the appropriate authorities.
a. Name the type of PSE referred above. In whose name does the govt buy shares?
b. State any three features of the type of public sector enterprise identified in part (a)
other than those discussed in the above para.

12. Write a short note on Capital Subscription Stage in the formation of a company.
Five Marker [Attempt any 3] [15]

13. Rajan wants to start a business unit manufacturing Khadhi items. His friend who makes
craft items, suggests him to start a small-scale industrial unit in some rural, backward area
since the government is offering various incentives to small-scale industries.
(a) State any four incentives offered by the government for small-scale industries. (2)
(b) Name two institutions set up by the government of India to promote small-scale
industries in rural India. Explain their role. (3)

14. Write a short note on Social Responsibility and discuss four arguments in favor of Social
Responsibility.
 15. Explain how Commercial Banks perform the function of Financial Intermediation.
Also explain the following terms in context of a bank
a. RTGS b. Bank Overdraft c. Multiple Option Deposit

16. Max Ltd., a foreign company, started its business in a under-developed country. The size of
the business is quite Large. The company has plenty of resources. It employs thousands of
people in the under-developed 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 businessmen 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. Max Ltd. is using completely
the latest technology in its various business activities. As a result, 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) Explain any three features of the enterprise identified in (a) by quoting the lines from the
above para.
Six Marker [Attempt any 3] [18]

17. ABC Ltd. Manufactures leather purses and garments. The company plans to expand their
business at international level as domestic market is not sufficient for large expansion and
growth. The company is not having any idea of starting export neither they have any foreign
exchange and any one known in foreign country.
c. Explain any three documents that company needs to enter Export Trade.
d. State any three benefits our country will get with this expansion.

18. Indian Railways is the largest employer and the largest railway provider in the world.
Railways since the beginning has expanded and still keeps expanding into reaching the
farthest points in the country. It is so large that from 1924 to 2016 it had a separate
budget for itself. Sometimes, such large entities need separate governance and the budget
for this is received from the treasury of the Government of India.
(a) What form of public sector undertaking are we talking about?
(b) Explain any two of its features.
(c) Discuss two merits and two demerits of the same.

19. What do you mean by the term Insurance? Explain any three Principles of Insurance
Contracts that are essential for it to be a valid contract.

20. Shikha is a sole proprietor. Over the past decade, her business has grown from operating a
neighborhood corner shop selling accessories such as artificial jewels, bags, hair clips and
nail polish to a retail chain with three branches in the city. Although she looks after the
varied functions in all the branches, she is wondering whether she should form a company
to better manage the business. She also has plans to open branches countrywide.
(a) Explain two benefits of remaining a sole proprietor.
(b) Explain two benefits of converting to a joint stock company.
(c) What role will her decision to go nationwide play in her choice of form of the organisation?