DELHI PUBLIC SCHOOL, JAMMU

Class XI SAMPLE PAPER Business Studies

Time: 3 hrs Max. Marks: 80
General Instructions:
i. This question paper contains 34 questions.
ii. Marks are indicated against each question.
iii. Answers to the questions carrying 3 marks may be from 50-75 words.
iv. Answers to the questions carrying 4 marks may be about 150 words.
v. Answers to the questions carrying 6 marks may be about 200 words.
vi. Attempt all parts of the questions together.

Q1. Ramsons is a HUF business run by Ram and his 2 sons. Suddenly Ram died in an accident. State
who will take up the position of KARTA, leaving the business stable? [1]
a) Elder son b) Next Eldest member c) Younger brother d) Wife of Karta
Q2. Environment protection means freeing the environment from air pollution etc. Every living
being on this earth requires clean environment. Therefore, the protection of environment is
absolutely required. Name the various types of pollution. [1]
a) Water pollution b) Air pollution c) Noise pollution d) All of these
Q3. Anjum is helping an old man to cross the road. Which kind of activity Anjum is performing
here? [1]
a) Economic activity b) Non-Economic activity c) Social activity d) none of these
Q4. Jay, kay and Ray are three partners running a business of cosmetic goods. Jay do not take part in the day
to day activities of the business. But he contributes capital to the business, shares its profits and losses and has
unlimited liability. Identify the type of partner Jay is? [1]
a) Active b) Nominal c) Sleeping d) none of these
Q5. Rohan has a shop of kid’s toys, garments, shoes etc. he wants to sell goods online. But he doesn’t have
any knowledge and skills of selling goods online. He approached one of the company xyz pvt. Ltd. who sells
goods online. Xyz Company acquired Rohan’s company and started selling products through their own online
platform. [1]
Identify the type of enterprise referred here.
a) Private company b) Public company c) Partnership d) none of these
Q6. Rajiv started a manufacturing business of water bottles. His objective of running this business is
economic i.e., produce goods that society wants and sell them at a profit. Identify the kind of responsibility
Rajiv performed here. [1]
a) Economic responsibility b) Social responsibility
c) Ethical responsibility d) none of the above
Q7. Which of the following is true about statutory corporations? [1]
a) Statutory corporations are public enterprises that come into existence by a special act of parliament.
b) Statutory corporations are subject to the same accounting and audit procedures as are applicable to
government departments.
c) Statutory enterprises are funded by the government treasury.
d) The employees of statutory enterprises are civil servants.
Q8. Business risk are created by many human and natural powers. Apart from this, there can be
many other causes for it. For example, physical cause, economic cause and government policies etc.
They can be divided into the………………………… [1]
a) Natural cause b) Seasonal cause c) Geological cause d) All of these
Q9. It is the third document in relation to the formation of a company, generally, it is issued by a
public company to obtain money from the public, and the promoters of company generally issue:
a) MOA b) AOA c) Prospectus d) Contract [1]
Q10. In modern age, banking has become the foundation of economic development. In the older
days, the traders of Italy who performed the job of exchanging money were known as BANCHI.
The term ‘BANK’ is derived from: [1]
a) Banker b) Banking c) Banch d) Banque
Q11. Unlike life insurance, provides insurance against theft, fire, marine, accident etc. it is done
mainly of the properties such as car, stock-in-trade, building, scooter, T.V, House etc. This is
known as: [1]
a) General Insurance b) Life Insurance c) Fire Insurance d) Hull Insurance.
Q12. Which if the following is not a function of Insurance? [1]
a) Risk Sharing b) Assist in capital formation
c) Lending of funds d) None of these
Q13. NABARD was setup in: [1]
a) 1985 b) 1982 c) 1988 d) 1999
Q14. Shweta wants to start a huge legal consulting firm. She is in the process of formation of the company.
She is preparing various documents, out of which she found that it is the most important document as it
defines the objectives of the company. Identify which document has been mentioned here. [1]
a) MOA b) AOA c) Prospectus d) Both A & B
Q15. This community is popular in the country except Assam, Bengal and some parts of Orissa. In this
community, the moment a son is born he gets equal rights, along with his father, in the ancestral property.
a) Dayabhaga b) Partnership c) Mitakshara d) None of these [1]
Q16. What is the full form of SAIL? [1]

Q17. Ajanta Ltd. Invested in the CSR for running the youth India campaign for graduates to give
them employment. Which objective of business is being fulfilled by the Ajanta Ltd.? [1]
a) Organizational objective b) Personal objective c) Social objective d) None of the above
Q18. Identify the feature of partnership reflected in the given statement,’ the partner bears all the
risks which are associated with business”. [1]
a) Liability b) Risk Bearing c) Continuity d) None of the above
Q19. Rishab wants to buy a policy under which a certain amount is being payable to the insured
after he/she attains a particular age or on his death. Which of the following will be the best suited
policy? [1]
a) Whole life policy b) Endowment policy c) Joint life policy d) Annuity policy
Q20. VPN stands for: [1]
a) Virtual process network b) Virtual processing network
c) Virtual private network d) none of these
Q21. What are the advantages of Mail order houses? [3]
Q22. ‘Risk in business is not by choice but a composition.’ Comment. [3]
Q23. Explain any three merits of partnership firm? [3]
Q24. What is Memorandum of Association? [3]
Q25. What do you understand by social responsibility of business? How is it different from legal
responsibility? [4]
Q26. Why is Life insurance called as Life Assurance? Why is the principle of indemnification of losses not
applicable to life assurance? [4]
Q27. Why are consumer cooperative stores considered to be less expensive? Explain its two advantages and
two disadvantages? [4]
Q28. “The purpose of business is serving society, not just making money.” Explain? [4]
Q29. Two college friends Mr. Raj and Mr. Bajaj studying in the same college decided to venture into business
after their graduation. However, both are adamant about the type of company they should form with respect to
profits and efficiency. The former is interested in opening a private company, while the later wants it to be a
public company. What would be your advice to Mr. Raj and Mr. Bajaj? [4]
Q30. Explain the following principles of insurance:- [4]
a) Utmost Good Faith b) Indemnity
Q31. Differentiate between business, profession & employment? [6]
Q32. Explain the various functions of Indigenous bankers? [6]
Q33. Explain any 4 functions of commercial banks? [6]
Q34. Raghav is the eldest male member of Jain family. They are four brothers. They are living in
Joint family. Raghav wants to form Joint Hindu Family Business so that apart from joint
family, they will have joint business also. [6]
a) Under which law Joint Hindu Family business is governed?
b) By what name members of Joint Hindu Family business are known?
c) Which two systems govern membership in Joint Hindu family Business? Explain them.