Business Studies Questions and Answer Key

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GOPI BIRLA MEMORIAL SCHOOL
2022-23
UNIT TEST- 2 (MARKING SCHEME)

GRADE: 11
SUBJECT : BUSINESS STUDIES MAX MARKS : 25
DURATION : 1 HOUR
General Instructions:
1. This question paper contains 11 questions. All questions are compulsory.

2. This question paper is divided into two parts, Part A, B, C and D
3. Question 1 to 6 carries 1 mark each.
4. Questions 7 to 9 carries 3 marks each.
5. Questions 10 carries 4 marks
6. Questions 11 carries 6 marks
PART A
1
To ensure fair and regular return on investment, is related to which group?
a. Customer 1
b. Employees
c. Community
d. Shareholders
2 Providing fair compensation u

· and sa"-e working conditions, is related to social 1
responsibilities towards
a. Customers
b. Shareholders
c. Community
d. Employees
3 Retained Earnings are also known as

a. Capital 1
b. Ploughing back of profit
c. Surplus Profit
d. Gross Profit
4 Who controls the company?

1
a. Debenture holders
b. Employees
c Directors
.i.
Shareholders Equity . .
5 When your brand gets lega1 protection
. an d n O one else is allowed to use 1t, this 1
called
a. Copyrights
b. Patent
Page 1 of3
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I
--------=c:--.'""'riTr.r::-a~de~m;;-:a;;-;r:i;k------------~
d. None oftl1e above \
6 To protect a process, method or innovation one gets

a. Copyright
b. Patent
c. Trademark
d. None of the above
PART-B
7 What is business finance? Why do businesses need's funds? Explain.

Business finance refers to the capital fund and credit invested in the business
be defined as planning, raising, managing and controlling all tlie money"/'% 1
capital
· fund use d m · connection
· w1'th busmess.
· se of
Business enterprises require capital and finance for the following purposes.
When starting a business, finance is required to procure fixed assets and also lot
meeting the day-to-day expenses.
To meet the working capital requirement when production process is leugtJ,y,
To finance the growth and expansion projects of the company, we need fixed
capital.
8 Why is there more scope for small-scale industries in developing countries like India?
Developing countries face a shortage of finance and tl1ere is abundance of labour.
Small scale industries preferred techniques of production which require less 1fo:rncc
and more labour. There is more scope for small scale industries in India because I/Jc
government is also doing a Jot of favours for tJ1e small scale industry
9 What do you understand by Social Responsibility of business? How is it

different from Legal Responsibility?
Social responsibility
upliftment means obligations of the business persons towards tlie
of the society,
Social responsibility of a business is not compulsory for the organisation or
legal responsibility becomes a compulsion because certain norms a
nd
conditions have to be followed by the business unit and are uncertain ul1 law
abiding rules have to be adhered to which will result in punishment and fine
PARTC
10 Identify the source of finance highlighted in the following cases:

i. It refers to that part of profits which is kept as reserves for use in tlle
future
Retained Earnings
ii. This source has characteristics equity shares and debentures
Preference Share Capital
iii. It is the cheapest source of internal financing.
Retained Earnings
iv. It is a permanent source of capital and is not redeemed during the
lifetime.
Equity Shares
Page 2 of3
PARTD
Aayush Funny ~ashions, a reputed garment manufacturing unit needs to find its day-to-
day expenses like wages, rent, maintaining stock of raw material etc. The owner
approached his raw material supplier to give them credit for two months, so that he get
cloth for making garments without making immediate payment. The supplier made an
enquiry regarding Aayush Funny Fashions and found that his reputation of giving
payment is not very good. In the past the lenders were not very happy.
A. What source of finance is Aayush Funny Fashions is trying to get in the above 1
case?
Trade credit
2
B. Should the raw material supplier grant credit to Aayush Funny Fashions? Explain
your assertion with respect to the above.
No .
His past payment record is not good and he is not enjoying good reputation
C. Suggest with other type of finance Aayush Funny Fashion can derive. 1
Loan
Debentures
2
D. Explain 2 characteristics of the above type of finance suggested by you m
. C.
Page 3 of3

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t \ \1 1 "' !!

GOPI BIRLA MEMORIAL SCHOOL

UNIT TEST- 2 (MARKING SCHEME)

SUBJECT : BUSINESS STUDIES MAX MARKS : 25

1. This question paper contains 11 questions. All questions are compulsory.

2 Providing fair compensation u

3 Retained Earnings are also known as

4 Who controls the company?

6 To protect a process, method or innovation one gets

7 What is business finance? Why do businesses need's funds? Explain.

9 What do you understand by Social Responsibility of business? How is it

10 Identify the source of finance highlighted in the following cases:

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