ITL PUBLIC SCHOOL

Pre Periodic Test - 1 Assignment

Date:26.07.24 Class: XI
BUSINESS STUDIES (054)

1 Identify the ancient trade centre of India which was a city of financial and commercial banks 1
and was a Buddhist centre of learning.
a. Peshawar b. Taxila c. Kanchi d. Mathura
2 The directors take all decisions on behalf of the shareholders, keeping in mind their own 1
benefit. Identify the demerit stated above.
a) Delay in decision making b) numerous regulations
c) Lack of secrecy d) oligarchic management
3 Read the following statements I and II. Choose the correct option from the options given 1
below:
Statement I: Profit is the reward for risk taking.
Statement II: Greater is the risk involved in the business, lower is the chance of profit.
a) Statement I is true but statement II is false. b) Statement II is true but statement I is false.
c) Both the statements are true. d) Both the statements are false.
4 Which one of the following is a correct statement? 1
A minor in a partnership:
a. has an unlimited liability c. cannot be asked to bear losses
b. can enter into a valid contract d. cannot become partner
5 Which of the following is not a limitation of Partnership form of business: 1
a. Since business is run by a group of persons therefore there are chances of conflict
among partners.
b. Capital investment in a partnership firm is low as there is restriction on maximum
number of partners
c. Since a partnership firm is not required to publish its financial reports therefore this
leads to lack of public confidence.
d. Partnership business does not suffer from lack of continuity as business does not
come to an end with the death, retirement, insolvency or lunacy of any partner.
6 Assertion (A): Innovation is the introduction of new ideas or methods in the way something is 1
made or done.
Reason (R) : Profits are required for expansion and growth.
Alternatives:
a. Both Assertion (A) and (R) are true and Reason (R) is the correct explanation of
Assertion (A).
b. Both Assertion (A) and (R) are true and Reason (R) is not the correct explanation of
Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
7 Which of the following combinations are correct for internal trade? 1
a. Import and export c. wholesale trade and entrepot
b. retail trade and import Trade d. wholesale trade and retail trade
8 Which of the following is not an example of economic causes of business risks? 1
a. Competition c. Carelessness of employees
b. Demand for goods d. Change of technology
9 The maximum number of members in a partnership business is. 1
(a). 7 (b). 20 (c). 10 (d). 50
10 Which of the following is true about Limited Liability Partnership? 1
a. It is formed for a limited time period.
b. Registration of the firm is compulsory.
c. The liability of all partners is limited to their capital contribution.
d. Limited partners enjoy the right to management.
XI 1 of 2
11 Which form of business organization is suitable in the following cases? Identify and define 3
these.
i. which should have stability and continuity. ii. in which registration is optional.
iii. which has minimum legal formalities.
12 i. Identify and name the economic activities: 3
a. which require minimum academic and other qualifications; and (1+2)
b. which require qualification and training in specific field.
ii. “Commerce includes trade and auxiliaries to trade”. Explain.
13 Gautam recently read about the Start-up India Scheme launched by the Government and plans 4
to start his own business of growing different varieties and breeds of flowers. He has limited
finance and a small place to start his operations. Suggest him which form of business
organization will be suitable for him and why? Also explain any two merits of this form of
organisation.
14 i. Identify and state the type of partners: 4
a. who does not take part in the day to day activities of the business. (2+2)
b. One who through his/her initiative, conduct or behavior, he gives an impression to
others that he is a partner of the firm.
ii. A group of 15 employees of a bank have formed a Housing cooperative society. A
managing committee of 3 members look after the affairs of the society. Some
members offer honorary services but are generally not professionals to handle the
functions of the society efficiently. Identify and name the demerit of cooperative
form of organization. Also explain its any other demerit.
15 i. Define “Business Risk”. (1) 4
ii. Explain any three characteristics of business. (3)
16 i. Which form of business organization is characterized by Mutual Agency and Profit 6
sharing? Name it.
ii. State any of its three features which are not mentioned in the given statement (in part i).
iii. Also state its any two demerits.
17 Rakesh has set up a cement company on 10th January, 2015. He has got his company 6
registered under Companies act, 2013. From the day of its incorporation, it acquires an
identity separate from its members. Also, as the company is created by law, it can come to end
only by the procedure of law. Members may come and go but the company goes on forever.
Like natural persons, it can own property, incur debts, borrow money and enter into contracts.
i. Identify and name the four features of company highlighted in the above lines by
quoting lines from the para.
ii. Also explain other two features of company form of organization which are not
referred to in the above para.

XI 2 of 2