R.D.

RAJPAL SCHOOL
REVISION EXAM (2023-24)

CLASS-XI SUBJECT-BUSINESS STUDIES (SET-A)

TIME ALLOWED: 3 HOURS MAXIMUM MARKS: 80
NO. OF PAGES: 04

General Instructions:
1) This question paper contains 34 questions.
2) All the questions are compulsory.
3) Answers should be brief and to the point.
4) Answers to the questions carrying 3 marks may be from 50 to 75 words.
5) Answers to the questions carrying 4 marks may be about 150 words.
6) Answers to the questions carrying 6 marks may be about 200 words.
7) Attempt all parts of the questions together.

Q1. Name the two broad categories of business activities. 1

(a) Trade and Commerce (b) Trade and Industry
(c) Industry and Commerce (d) None of these

Q2. Centralized control in MNCs implies control exercised by 1

(a) Branches (b) Headquarters (c) Parliament (d) Subsidiaries
Q3. This is not the benefit of e-business. 1
(a) Convenience (b) Global Reach (c) Low Personal Touch (d) Customer satisfaction
Q4. The minimum number of members to form a private company are 1
(a) 5 (b) 7 (c) 2 (d) 21
Q5. Read both the statements carefully and choose the correct alternative from the following: 1
Assertion: Equity capital serves as permanent capital as it is to be repaid only at the time of
liquidation of a company.
Reason: As it stands last in the list of claims, it provides a cushion for owners, in the event of winding
up of a company.
(a) Both the Assertion and the Reason are correct.
(b) Assertion is true but the Reason is false.
(c) Assertion is false but the Reason is true.
(d) Both the Assertion and the Reason are false.

Q6. Aarti was born and brought up in Mumbai. After completing her higher studies, she started working
as an assistant architect in a leading company. After a few years of that now she wants to set up her
own consultancy and undertake independent projects. She discusses her plans with her father. Her
father suggests that she should carry on with the job because starting independently will mean
becoming a sole proprietor and that would bring along problems of unlimited liability. But Aarti was
not convinced to stay in the job. Then he suggested that the second option for her could be to form a
partnership or a Pvt. Ltd. Company, with a friend. But Aarti did not like this idea either, as she did not

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 want any form of interference from anyone. Aarti approached a consultant and discussed her concerns
with him. The consultant offered her a solution and Aarti was happy with that idea.
On the basis of the given information, answer the following questions:
(a) Which form of business organisation would have been suggested by the consultant? 1
Q7. Profit is the reward for Risk bearing. (True/ False) 1
Q8. Name the part of earnings taken by the owner. 1

Q9. The government does not interfere in the working of a startup for the first three years; it is related to
which scheme of startup. 1
(a) No Inspection (b) Capital gain exemption
(c) Tax exemption (d) Crowd funding
Q10. Who heads the departmental undertakings? 1
Q11. What is the liability of coparceners in HUF? 1
Q12. Debentures represent ___________ 1
(a) Fixed Capital of the Company (b) Working Capital of the Company
(c) Fluctuating Capital of the Company (d) Loan Capital of the Company
Q13. Read both the statements carefully and choose the correct alternative from the following: 1
Assertion: A government company can be established by fulfilling the requirements of the Indian
Companies Act.
Reason: A separate Act in the Parliament is not required for the formation of a government company.

(a) Both the Assertion and the Reason are correct.

(b) Assertion is true but the Reason is false.
(c) Assertion is false but the Reason is true.
(d) Both the Assertion and the Reason are false.
Q14. Why equity share capital is called risk capital? 1
Q15. Give the full form of DIC. 1
Q16. The retailers having no fixed place of selling are called 1
(a) Vendors (b) Seller (c) Itinerants (d) None of the above
Q17. Which certificate is necessary to prove that the goods are produced in the home country itself. 1
(a) Certificate of origin (b) Letter of Credit (c) Mate’s Receipt (d) Indent
Q18. Rajiv fashion, a reputed garment manufacturing unit needs to find its day-to-day expenses like

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 wages, rent, maintaining stock of raw material, etc. The owner approach his raw material supplier to
give them credit for two months, so that he can get cloth for making garments without making
immediate payment. The supplier made an enquiry regarding Rajiv and found that his reputation of
giving payment is not very good. In past the lenders were not very happy.
What source of finance Rajiv is trying to get in above case? 1
Q19. IEC number is issued by 1
(a) Import Export Licencing authority (b) Foreign Minister
(c) Minister of commerce and Industry (d) Chamber of Commerce
Q20. This document is the most appropriate and secure method of payment to settle international
transaction. Identify the document. 1
(a) Bill of Lading (b) Letter of Credit (c) I.E.C. number (d) Indent

Q21. Sanjay Bhattacharya kept his goods valued at 80,000 in a warehouse and had taken a fire however
was not worried about the same and as he had insured his goods against the risk of fire, he did not
even call the fire department for a firefighting machine. The actual losses amounted to 65,000. How
much money can he claim from the insurance company? State the relevant insurance principle in this
regard.3
Q22. Describe the role of National Small Industries Corporation in the promotion of SSIs. 3
Q23. Give the objectives of World Trade Organisation. 3
Q24. Vedantika Industries produces a wide variety of beauty products. Their range of skin polishing
scrubs, shampoos, face washes and acne masks, and health drinks aids in promoting natural beauty is
very promising and impressive. Since they were new in the market, they decided to sell their products
through wholesalers. They appointed one wholesaler in each district and promised them that they will
remain the exclusive dealers in that area After few years, during one of the general meeting, Sophia,
newly appointed sales manager suggested that if they sell the product directly to retailers they will be
able to offer competitive prices which will increase the sales turnover and eventually the profits.
Sophia was directly supporting the elimination of wholesalers.
Do you agree with Sophia suggestion? Give reasons in support of your answer. 3
Q25. Explain first four points of Import trade. 4
Q26. Mahesh Time Machine Ltd. is engaged in manufacturing electronic watches in Delhi. The company
received an order for supply of 600 watches from Karan Electronics in Madhya Pradesh. As the
amount of payment is more than 3 lakhs, Karan Electronics decided to transfer the funds directly
from their bank account through the mobile application. Now-a-days due to these services the
customers do not need to go to the bank every time he has to transact with bank. On the basis of the
given information about Mahesh Time Machine Ltd., answer the following questions:

(a) State the service of bank through which Karan Electronic has transferred the funds directly from
his bank account.
(b) Explain the benefits of this service available to customers.
Q27. "The businessmen are responsible for aggravating pollution, so it becomes the moral duty of
businessmen to take some positive steps for controlling this problem." In the light of this statement,
explain the role of businessmen in checking pollution.

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Q28. Name the enterprise that operates in different countries. Give its three characteristics. 4

29. 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.
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(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.

Q30. Explain the four ways to fund startups. 4

Q31. Distinguish between Business and Profession on the basis of transfer of interest, main objective,
risk, reward, nature of work and qualification. 4

Q32. Oasis Lights Ltd. manufactures LED Bulbs. At present, it is a debt free company with an equity
capital of 50 lakhs and general reserves of 35 lakh. It wants to increase its manufacturing capacity
and needs 40 lakhs for it. The management wants to use a combination of internal and external source
of funds to finance this expansion programme. Specify the most appropriate source of funds suitable
for the company to finance its expansion programme. 6

Q33. Explain the meaning and features of the store which has centralized purchase and decentralized
sale. 6

Q34. Sushant is running a general store in a small shop in a premium location. The shop next door is on
sale. His friend advises him to buy the shop but Sushant does not have the necessary capital. His friend offers
him the money but Sushant is not in a position to take a loan of such a large amount. So his friend makes a
proposal where he offers to become a part owner of the business. He also suggests that they should have a
written understanding wherein the role of both the owners is clearly spelled out and there is no confusion later
on. After a lot of contemplation Sushant refuses to accept his friend offer.

On the basis of the given information, answer the following questions:

(a) What does "written understanding" refer to? Explain. 2
(b) Why do you think Sushant refuses his friends offer? Explain four reasons. 4