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 Series ARSP/14 Set ~ 14
Roll No. Q.P Code 15/14/14
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 05 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

BUSINESS STUDIES

Time allowed: 3 hours Maximum Marks: 80

General Instructions:

1. This question paper contains 34 questions.

2. Marks are indicated against each question.

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.

1. Business transaction taking place within the geographical boundaries of a nation is known as a domestic or [1]
national business. It is also referred to as internal business or home trade. Manufacturing and trade beyond the
boundaries of one’s own country is known as international business.
Permitting another party in a foreign country to produce and sell goods under your trademarks, patents, or
copyrights in lieu of some fee is another way of entering into international business. This is through ________.

a) sale of goodwill b) sale of copyrights

c) sale of trademark d) licensing and franchising

2. What is the maximum amount that can be invested in equipment by a Medium enterprise engaged in rendering [1]
services according to Government of India?

a) 5 crore rupees b) 2 crore rupees

c) 3 crore rupees d) 4 crore rupees

3. Indian economy is ________. [1]

a) mixed economy b) fully developed economy

c) private economy d) closed economy

4. Who offers facilities for after-sales services? [1]

a) Retailer b) Wholesaler

c) Both Retailer and Wholesaler d) producer

5. NABARD was setup in ________. [1]

a) 1975 b) 1987

c) 1982 d) 1991
 6. Expand VPN: [1]

a) Virtual Public Network b) Virtual Personal Network

c) Virtual Private Network d) Virtual Popular Network

7. Funding for Departmental Undertakings comes from which of the following sources: [1]

a) Debentures b) Shares

c) Government Treasury d) Loans from Financial Institutions

8. When does SFURTI was set up by the Central Government of India? [1]

a) 2005 b) 2002

c) 2003 d) 2004
9. Which of the following is false regarding equity shares? [1]
A. Funds raised through equity shares is known as ownership capital.
B. Equity shareholders do not get a fixed dividend.
C. Equity shareholders receive what is left after all other claims on the company's income and assets have been
settled.
D. Liability of equity shareholders is unlimited.

a) Only B is false b) Only D is false

c) Only A is false d) Only C is false

10. Assertion (A): A Company has Perpetual Existence. [1]
Reason (R): The existence of a company is not affected by the death, retirement, resignation, insolvency or
insanity of its members.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

11. The modern concept of shopping which provides multiple facilities at one place is known as: [1]

a) Retail Shop b) Malls

c) Wholesale Shop d) Super Bazar

12. To sell ready-made garments for children, men, women, etc. is the example of: [1]

a) General Store b) Single-line shop

c) Departmental Store d) Single-product shop

13. Which activity forms a part of the promotion stage? [1]

a) Identification of business opportunity b) Appointment of professionals

c) Feasibility studies d) Incorporation of company

14. Expand DIC [1]

a) District Industries Centers b) Directorate of Indian company

c) Directorate of Indian Corporation d) Directorate of Industry Corporation

15. If the business is to operate in a society which is full of diverse and complicated problems, it may have: [1]
 a) great chance of success b) little chance of success

c) no relation with success or failure d) little chance of failure

16. Assertion(A): Current account is mostly suitable for business firms. [1]
Reason(R): Holder can deposit or withdraw money as and when required.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

17. Under Village and Small Industries Sector which of the following accounts for modern small industries. [1]

a) Hand looms b) Power looms

c) Khadi d) Coir
18. Business is considered to be ________. [1]

a) Community activity b) Political Activity

c) Economic Activity d) Social Activity

19. Expand NABARD [1]

a) National Agricultural Bank and Rapid b) National Bank for Agriculture and Rural
Development Development

c) National Bank for Research and d) National Bank for Advance and Rapid
Development Development
20. What minimum percentage of the paid-up capital should be held by the government in a Government Company? [1]

a) 49% b) 100%

c) 75% d) 51%
21. How is the payment of customs duties made? [3]
22. Explain the following features of business risk: [3]
i. Business risks arise due to uncertainties.
ii. Risk is an essential part of every business.
OR
Chanchal and Komal are two-twin sisters. They have completed their M.Com studies. Now they are in search of
employment. After a thorough study they decided to set up a flour mill. Their main job was to purchase wheat from
the market and have it ground into flour. Their flour was available in the packings of 5 kg, 10kg and 50 kg. They
named their brand 'Maan Ka Dular' and also decided that they would have only 8% profit on cost. Their activity of
buying and selling became continuous (nonstop). In no time, their brand became popular in the market. The main
reasons for their popularity were 'superior quality and low price'. Their business was running very well. But one day,
their factory caught a terrible fire. They have to suffer a heavy loss. The brave sisters did not lose their hearts.
Gradually their business was back to normal. Now, they are fully satisfied with their business.
i. On the basis of the information given in the above paragraph tell which aspect of the business is it related.
ii. Quoting the relevant lines write about five points in the context of (i).
23. State any three services provided by the retailer to the consumers. Also, explain to them. [3]
24. Jupiter Ltd. is a well-known manufacturer of sanitary fittings. Recently, the company was short of funds for [3]
 meeting its day-to-day expenses. So, the company approached one of its suppliers to grant 60 days credit on the
purchase of raw material. On the basis of the creditworthiness of Jupiter Ltd., the supplier granted the credit.
Identify the source of finance highlighted in the given case. Also, state its four merits.
OR
Explain the meaning of trade credit.
25. Write a note on the departmental stores in India. [4]
OR
Mr Satish Sharma runs a showroom named "Sharma Saree Mahal". All types of sarees are available at his showroom.
During the marriage season, usually, there is a great rush here. Mr. Sharma buys lots of sarees from the manufacturers
of sarees. All his purchase is on cash and sometimes, he gives even advance payment. Because of making a cash
payment, he gets cash discount and awards. Mr Sharma has not any direct contact with the final consumers, but
through the retailers, he continues to get information about the changing demands of the consumers. Mr Sharma
continues to convey the information to the manufacturers of sarees about the changing demands of the consumers.
Then, the manufacturers of sarees do the production in accordance with the wishes of consumers. Mr Sharma
advertises the sarees available at his showroom through the local T.V. Channel and Cinema Houses. Besides,
advertisement is also done by putting up big hoardings at the Main Squares, the Bus Stand, and the Railway Station.
Its benefit reaches the final consumers as well as Mr Sharma's buyers. Now, retailers do not need to do any
advertisement. Mr. Sharma keeps informing his customers well in time about the sarees of new designs made by the
manufacturers. In this way, the shopkeepers sitting at home keep getting the information about the new products. As
a result, they are getting ahead in the competition by buying goods first of all.
i. To which two types of businessmen is Mr Sharma offering his services through his business activities in the
above paragraph?
ii. Quoting the relevant lines identify two services each being provided to the businessmen identified in (i).
26. India holds the third position in the World's largest producer of eggs (by weight) and the sixth Position in the [4]
largest production of chicken meat. The meat production in India has grown up by a brisk 10 percent and egg
production by 5 percent over the past 10 years. By 2030, it is estimated that 40 percent of India's population will
be urbanized and the number of working women is likely to double. Consequently, this could significantly boost
the market for frozen foods, including poultry products. But, the potential is constrained by recurring incidents
of disease in poultry products, no awareness of frozen foods and rising feed costs.
In the context of the above case answer the following questions:
i. Identify and explain the different kinds of industries being discussed in the above paragraph.
ii. State the categories of types of industries to which the different kinds of industries as identified in part (i)
belong to.
OR
Business is an organized institution that operates to provide goods and services under the incentive of private gain.
Discuss.
27. Describe briefly any two applications of E-business. [4]
28. Write the merits of departmental undertakings. [4]
29. What are the responsibilities of business towards society (public)? [4]
30. What is the process of registration of copyright? [4]
31. List and explain various incentives and schemes that the government has evolved for promoting the country's [6]
foreign trade.
 OR
Distinguish between licensing and franchising.
32. Why is it important to choose an appropriate form of organisation? Discuss the factors that determine the choice [6]
of the form of organisation.
OR
List the documents required for the incorporation of a company.
33. Discuss the sources from which a large industrial enterprise can raise capital for financing modernisation and [6]
expansion.
34. Jeevan insures his property worth Rs. 10 crores with two insurers 'AIG Ltd.' and 'MetLife Ltd/ for Rs. 6 crore [6]
and Rs. 4 crores, respectively. Due to an earthquake, the actual damage caused to Jeevan's property is worth Rs.
3 crore. He filed a claim for Rs. 3 crore against each of the insurance companies. Identify and explain the
principle of insurance which has been violated in the above case.