BUSINESS STUDIES (054)

CLASS: XI

TIME: 3 HRS M.M:80

1. Tea is mainly produced in Assam; Cotton in Gujarat and Maharashtra; Jute in West Bengal and 1
Odisha; Sugar in U.P, Bihar and Maharashtra. But these goods are required for consumption in
different parts of the country . For this purpose ……………. is very important.
a) Advertising b) Banking and Finance c) Insurance d) Transport and
Communication
2. Government of India established public sector enterprises to meet the post-independence 1
challenges of poverty, employment, illiteracy and regional imbalance. However, with time,
government reduce the number of industries reserved under public sector and promoted
disinvestment. Why in your opinion government promoted disinvestment?
a) Encourage public sector to take up greater responsibilities for society..
b) Provide consumers a limited choice, low quality of goods at lower price.
c) Transfer commercial risk to the private sector so that funds could be invested in meaningful
projects.
d) All of the above.
3. Sukarn has taken fire insurance policy for his factory. Due to fire he suffered a loss of Rs. Two 1
lakh and he gets the compensation for the same. The half- burnt goods sold by the insurance
company for Rs. 30,000.
The related principle of insurance in the above lines is:
a) Contribution b) Insurable Interest c) Mitigation d) Subrogation
4. Match the Columns: 1
i) Pataliputra A. Major centre for export of stones.
ii) Peshawar B. Major centre for textile Industry.
iii) Indraprastha C. Commercial junction on the royal road.
iv) Varanasi D. Important exporting centre for wool & for the import of horses.
a) i-A, ii-D, iii-C, iv-B
b) i-D, ii-A, iii-B, iv-C
c) i-B, ii-C, iii-A, iv-D
d) i-C, ii-B, iii-D, iv-A

5. Yogita, a business woman, has a Current Account in Punjab National Bank. Her Current Account 1
shows balance of just Rs. 40,000, while she urgently needs Rs. 2,50,000 to pay off one of her
creditors. She approaches PNB to allow her to withdraw Rs. 2,50,000, using the facility extended
by the bank to her due to her creditworthiness. The bank agrees to it. Identify the facility which
has been provided by PNB to Yogita.
a) Cash Credit b) Bank Overdraft c) NEFT d) RTGS
6. OLX marketplace is a platform for buying and selling services and goods such as electronics, 1
fashion items, furniture, household goods and services by making it fast and easy for anyone to
post a listing through their mobile phone or on the web. Identify the component of e-business
being described above.
a) B2B Commerce b) B2C Commerce c) Intra-B Commerce d) C2C Commerce
7. Which of the following statement is incorrect? 1
a) Ethical behaviour is above the behaviour required by law.
b) Top management plays a crucial role in guiding the entire organization towards ethical
behaviour.
c) Employees should not be involved in the process of developing ethical programmes.
d) Ethics are essential for every business and for the progress of any society.
8. Choose the correct statement about Synthetical Industry: 1
a) Industry engaged in analyzing and separating basic raw materials into different finished
products.
b) Industry engaged in combining two or more raw materials together in the manufacturing process
to make the final product.
 c) Industry in which a product passes through various stages to become a final product.
d) Industry in which different components are assembled to make a new product.
9. Which of the following alone can ensure effective ethic programme in a business enterprise? 1
a) Publication of a code b) Involvement of business
c) Establishment of compliance mechanisms d) All of them
10. Arrange the steps from the following required for raising funds from the public: 1
i Appointment of Bankers, Brokers and Underwriters.
ii Minimum Subscription.
iii SEBI Approval
iv Allotment of Shares.
v Filing of Prospectus or Statement in lieu of prospectus.
vi Application to Stock Exchange
a) v, i, iv, ii, iv, iii b) i, iii, ii, iv, v, vi
c) ii, i, iii, vi, iv, v d) iii, v, i, ii, vi, iv
11. Intra-B Commerce transactions may be conducted for: 1
a) Human resource management b) Inventory and cash management
c) Both (a) and (b) d) After-sale service
12. Read the following statement carefully and choose the correct alternative: 1
Statement I: No person is eligible to incorporate more than 1 ‘One Person Company (OPC)’.
Statement II: A public company has a minimum of 7 members and no limit on maximum
members.
Alternatives:
a) Both the statements are true. b) Both the statements are false.
c) Statement I is true, Statement II is false. d) Statement II is true, Statement I is false.
13 Suppose Akash is a shareholder in a company holding 200 shares of Rs. 10 each , on which he 1
has already paid Rs. 6 per share. In the event of losses or company’s failure to pay debts, Akash
is liable to pay :
a) Rs. 2,000 b) Rs. 1,200 c) Rs. 800 d) Rs. 3,200
14. Read the following statements: Assertion and Reason. Choose one of the correct alternative given 1
below:
Assertion(A): Banks do not pay any interest on Current Account. Rather, it imposes service
charges for running these accounts.
Reason(R): There is no restriction on number and amount of deposits and withdrawals in case of
Current Account.
Alternatives:
a)Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of
Assertion(A).
b)Both Assertion(A) and Reason(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.
15 Providing accurate and up-to-date information on the financial position of the company is a 1
responsibility of business towards:
a) shareholders or owners b) workers c) consumers d) government and
community
16 Which of the following is not a characteristics of a cooperative society? 1
a) Membership is open to all, irrespective of their religion, caste, and gender.
b) The society can enter into contracts and hold property in its name, sue and be sued by others.
c) In a cooperative society, the power to take decisions lies in the hands of all the members of
society.
d) The cooperative society through its purpose lays emphasis on the values of mutual help and
welfare.
17 Read the following statements carefully and choose the correct alternative from the following : 1
Statement I: Ethical business behaviour is beneficial only for the society and not for the business
enterprise.
Statement II: Employees should not be involved in the process of developing ethical programmes.
Alternatives:
a) Both the statements are true. b) Both the statements are false.
 c) Statement I is true and Statement II is false. d) Statement II is true and statement I is
false.
18 Warehousing facilitates the availability of goods as and when required. By doing this, which of the 1
following utilities are provided by warehousing?
a) Place Utility b) Person Utility c) Both (a) & (b) d) Neither (a) & (b)
19 ……………. Enables the customers to shop at their own convenience at any time (24x7). 1
a) Traditional Business b) e-Business
c) Both (a) & (b) d) None of these.
20 It is possible to maintain 100% secrecy and confidentiality in the following form of business: 1
a) Sole proprietorship b) Partnership
c) Joint stock company
d) Joint Hindu Family Business
21 Naresh took a fire insurance policy from NICL of Rs. 50 lakhs for his factory at the annual 3
premium of Rs. 75,000. In order to avoid premium more than his amount, he did not disclose that
highly explosive chemicals are being manufactured in his factory. Due to fire his factory gets
damaged. The insurance company NICL refused to make the payment for claim as it became
aware about the highly explosive chemicals.
Is Naresh entitled to claim? Explain the principle of insurance violated by Naresh.
22 Discuss the difference between e-business and traditional business on the basis of : 3
i) Locational requirements.
ii) Nature of human capital needed
iii) Operating Cost
OR
‘ e-business offers numerous benefits ’. Justify your answer by giving suitable reasons.
23 A group of seven friends decided to jointly set up a public company in a rural area where the 3
people were facing a serious unemployment problem. All of them jointly selected a place where
the company’s registered office would be situated. Along with it, with the advice of business
specialists, it was also decided what procedure would be followed for the issue and allotment of
shares. All the friends wanted their company to have a singular recognition, and people should get
immediate attraction towards its products. It was felt that the name of the company could become
a reason for its recognition. After a detailed discussion, the company’s name was decided as
Trimurthi Ltd. Then, they jointly completed all the formalities of the formation of the company.
Identify and explain the two important documents used in the formation of the company quoting
the lines from the above para which helped you identify these documents.
24 What do you mean by Global Enterprises? Briefly discuss its various characteristics. 3
OR
What do you mean by Statutory Corporation? Discuss its two Merits.
25 Explain the following telecom services: 4
a) Very Small Aperture Terminal Services.
b) Direct to Home Services.
OR
Explain the following e-banking Services:
a) Point of Sale (PoS)
b) Quick Response Code ( QR code)
26 Explain the scope of e-Business. 4
OR
Which type of e-business transaction is highlighted in the following cases?
i) Complaint lobed by a customer at the company’s call centre.
ii) Withdrawal of money from ATM.
III) Employees send their daily report through e-mail.
iv) Sale of used books through eBay.com.
v) Conducting surveys to determine customer’s preference.
vi) Purchase of security lock system by Hyundai from Autocops.
vii) Inventory and cash management of an organization.
viii) Recruitment and selection of employees.
27 Sunstar Steel Ltd., a leading manufacturer of iron and steel decided to setup a new factory in a 4
remote area of Rajasthan, so that unemployed youth from the rural areas could get same
opportunities as those available in the urban areas. This initiative has raised the standard of living
 of people in rural areas. All children in these families are getting good education and these families
are also actively contributing to nation building process through their dedicated work. On the basis
of the given information, identify and explain the objective of business being followed by the
company.
28 Discuss any four factors that determine the choice of form of organization. 4
29 The telecom services have been recognized the world-over as an important tool for socio 4
economic development for a nation and hence telecom infrastructure is treated as a crucial factor
to realize the socio-economic objectives in India. Accordingly, the Department of
Telecommunication services, the department comes under the Ministry of Communication and is
headed by a cabinet-level minister. It is financed by the government through allocation of funds in
the Annual General Budget of Parliament. Identify and state any three limitations of this type of
public sector enterprise.
30 The Rajiv Gandhi Super speciality Hospital in Raichur Karnataka is a venture of government of 4
Karnataka and the Apollo Hospital Group (Private Enterprise), with financial support from OPEC.
The basic reason for establishing the partnership was to give super- special ity health care at low
cost to the people below Poverty Line. The Govt. of Karnataka has provided the land, hospital
building and staff quarters as well as roads, power, water and infrastructure. Apollo provided fully
qualified, experience and competent medical facilities for operating the hospital. Identify and
explain the form of enterprises and its three features.
31 Differentiate between Life Insurance, Fire Insurance and Marine Insurance on the basis of: 6
Subject matter, Insurable Interest, Indemnity and Surrender Value.
OR
Explain any three Principles of Insurance from the following:
a) Utmost good faith
b) Insurable Interest
c) Contribution
d) Proximate Cause
32 Discuss any four reasons which justify the need for pollution control by business firms even though 6
it leads to drain of their precious resources.
OR
Give the meaning of social responsibility of business. State any five reasons in favour of assuming
social responsibility.
33 After completing the graduation, three close friends (Gopal, Shankar and Vinod) decided to start a 6
partnership business of manufacturing mobile accessories. However, all three of them are
confused about the type of partnership, they should start.
● Gopal wants that the partnership should be such that it can be brought to an end at the
desire of any partner.
● Shankar wants to do the partnership business for a period of three years only.
● Vinod wants that his liability should be limited in the business.
Identified and explain the types of partnership that the three friends are referring to.
34 Ganga Ltd. is a reputed company manufacturing computers. The company is earning a 6
considerable profit. Both the proprietors and the employees are putting their best efforts to make
good quality products available to the customers at a low price, paying its shareholders a good
amount of dividends and the employees a reasonable remuneration This contributes to the
successful operations of the business. With increased profits over time, the company’s foundation
becomes strong, and it earns a good reputation in the society. It utilizes its profit to finance its
growth and expansion requirements.
Explain the role of profit in business of Ganga Ltd. highlighted in the above para.