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Class 11 – Business Studies

Sample Paper - 01 (2022-23)

Maximum Marks: 80
Time Allowed: 3 hours

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. Which of the following comes under Modern Small Industries? 1

a) Khadi b) Handicrafts c) Coir d) Power looms
2. Limit of investment in small scale industry is ________. 1
a) ten crore b) five crore c) two crore d) one crore
3. ________ consists of various organisations owned and managed by the government. 1
a) Public sector b) Private sector c) Service sector d) Manufacturing sector
4. State which of the following statements regarding reasons for international business are
correct: 1
a) International business transactions involve use of currencies of more than one country.
b) Labour productivity and production costs differ among nations due to various
socioeconomic, geographical and political reasons
c) Availability of various factors of production differs among nations
d) All of these
5. A warehouse keeper accepts goods for the purpose of ________. 1
a) export b) selling c) storage d) packaging
6. B2B commerce means: 1
a) Firm’s interactions with other business b) Firm’s internal processes
c) Firm’s interactions with its customers d) None of these
7. Funds required for purchasing current assets is an example of: 1
a) Fixed capital requirement b) Lease financing
c) Working capital requirement d) Ploughing back of profits
8. Any industry located in a rural area that produces any goods, renders any service with or
without the use of power is known as ________. 1
a) City Industry (b) Town Industry

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(c) Village Industry (d) District Industry

9. ________ are set up under an Act of parliament and are governed by the provisions of the
Act. 1
a) Limited companies b) Partnership
c) Private companies d) Statutory corporations
10. Which of the following is probably the most important reason for incorporating? 1
(a) Limited liability of shareholders (b) More money for investment
(c) Increased flexibility (d) Shared management
11. ______is the payment method most often used in International Trade which offers the
exporter the best assurance of being paid for the products sold internationally. 1
a) Bill of lading b) Letter of credit c) Open account d) Drafts
12. Which of the following statements is correct for wholesalers? 1
a) They undertake additional activities.
b) They generally take the title of the goods and bear the business risks in their own name
c) They engage in buying and selling of goods
d) All of these
13. Stages in the formation of a public company are in the following order 1
a) Capital Subscription, Promotion, Incorporation, Commencement of Business
b) Incorporation, Capital Subscription, Promotion, Commencement of Business
c) Promotion, Commencement of Business, Incorporation, Capital Subscription
d) Promotion, Incorporation, Capital Subscription, Commencement of Business
14. Which of the following is part of the Village and Small Industries Sector? 1
(a) Handicrafts (b) Sericulture
(c) Handlooms (d) All of the above
15. Cattle breeding farms, poultry farms, and fish hatchery come under which industry? 1
a) Genetic b) Extractive c) Manufacturing d) None of there
16. The small-scale industry can enjoy the status of ________ if it supplies not less than 50% of
its production to another industry, referred to as the parent unit. 1
a) Village industries (b) Micro Business industry
(c) Export oriented unit (d) Ancillary small industry
17. Which of the following industries is not reserved for public sector? 1
a) Arms b) Atomic Energy
c) Rail Transport d) Sugar Industry
18. Which of the following alone can ensure an effective ethics program in a business enterprise?
1
(a) Publication of a code (b) Involvement of employees
(c) Establishment of compliance mechanisms (d) None of them
19. Which is not the characteristics of cottage industry: 1
(a) Use of foreign technique in production
(b) They are organized by personal resources of the members
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(c) Simple tools are used in it

(d) Small capital investment.
20. Which one of the following is not amongst India’s major export items? 1
(a) Textiles and garments (b) Gems and jewellery
(c) Oil and petroleum products (d) Basmati rice
21. The forwarding Agent of Paliwal Private Ltd., after getting the goods loaded on the ship gets
the Mate’s Receipt. What will the Forwarding Agent have to do immediately after it? Explain
briefly. 3
22. Folly is doing his business of buying and selling of garments products within India. He goes on
business trips around his state even on very short notice. Sometimes through his own car.
There are no or very few formalities involved in Folly’s business. Payments are made and
received in the home country currency only i.e., no exchange of currency is required.
i. Buying and selling goods within the geographical area of the country. Which type of
trade is it?
ii. Give any two examples of such trade. 3
23. Distinguish between Pure risk and Speculative risk on the following basis:
i. Meaning
ii. Possibility of profits/loss
iii. Risk coverage. 3
OR

Name the six hindrances to trade.

24. Why is adequate finance necessary to start the business? 3
OR
What are the advantages and disadvantages of preference shares?
25. List out any four disadvantages of international trade for the underdeveloped and
developing countries. 4
OR
List out any four advantages of international trade.
26. India is the largest milk producer in the world. Moreover, increasing demand for milk and milk
product has made dairy farming a profitable business. Considering these facts Raghu, an
industrialist has decided to set up a dairy farm and a cheese producing unit in Haryana. He
plans to deal in an extensive range of Fresh Mozzarella, Processed Cheeses, Pizza
Cheese, Cheese Singles, Naturally Flavoured Cheeses (with Black pepper, Garlic, Cumin,
Herbs & Spice), Mascarpone, Mozzarella & Grated Cheese for Pizza in various combinations.
In the context of the above case:
i. Identify the different kinds of industries Raghu wants to set up.
ii. State and explain the categories of types of industries to which the different kind
industries as identified in part (i) belong to. 4
OR

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Karan is running a grocery shop in the nearby local market whereas his friend Priyanshu
works as a finance manager in a reputed IT company.
In the context of the above case:
i. Identify the different types of economic activities both the friends are engaged in.
ii. Distinguish between the two different types of economic activities as identified in part (i)
of the question (any two points).
27. After completing a course in gemology, Esha joins her father in the family business of fashion
jewellery. Her father owns two showrooms at different locations in the city and operates his
business through them. However, Esha intends to expand the business by venturing into
online retailing. She also intends to introduce flexible manufacturing with the use of computer
networks wherein the marketing department can interact constantly with the production
department and get the customized products made as per the requirements of the individual
customer.
a. How is the mode of business that Esha intends to adopt different from the one that her
father has been following over the years?
b. Distinguish between the two different modes of business as identified in part (a) of the
question by giving any four points. 4
28. Why is the government company form of organization preferred to other types in the public
sector? 4
29. Britannia Industries Ltd. is committed to helping secure every child’s right to growth and
development through good food every day. The company is working in partnership with Global
Alliance for Improved Nutrition (GAIN) and the Naandi Foundation to supply iron-fortified Tiger
biscuits to supplement the Mid-Day Meal program in schools. Iron deficiency among Indian
children is a key cause of school dropouts as well as decreased productivity. In keeping with
its core essence of “Swasth Khao Tan Man Jagao”, the company constantly strives to find
sustainable opportunities to drive home the message of nutrition and good food habits among
children at the right age.
In the context of the above case answer the following questions:
c. Identify the kind of social responsibility being discharged by Britannia Industries Ltd.
d. Briefly explain any two other kinds of social responsibilities. 4
30. Suhasini and some of her friends jointly set up ‘Trimurti Limited’. The business of their
company was to manufacture blankets at a low rate. At the time of setting up the company,
they issued 25000 shares of the face value of 100. In this way, they started their business with
a capital of 25 lac. Before collecting the money from the public, they decided that they would
issue such security as should not let the company undergo any fixed financial burden. Also,
they wished to have the capital from such a source as should enable the company to keep the
capital for a long time. To collect the capital Suhasini and her friends issued a prospectus.
Through it, they told the public that in the coming years, the company expected to earn a big
profit and that the price of its shares would be very very high. As a result, investors would be
able to earn extra profit. In the prospectus, it was also said that the company would organize
its meetings from time to time and that the investors would be invited to these meetings. They
would have the right to cast their votes in these meetings. The company collected money from
the public and the company’s business started. The company started earning more profit than
what had been promised to the investors.
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i. Identify the type of shares issued by ‘Trimurti Limited.’

ii. Quoting the relevant lines write about the two advantages each to the investors and to
the company from the shares identified in (i). 4
31. Cafe Coffee Day (abbreviated as CCD) is an Indian cafe chain owned by Coffee Day Global
Limited, a subsidiary of Coffee Day Enterprises Limited. There are around 1,600 outlets of
CCD across India. All the outlets of CCD are under the control of the head office.
a. Identify the type of retail outlet being described in the given case.
b. State five features of the type of retail outlet as identified in part (a) of the question.
6
OR
What is meant by itinerant traders? Explain the various types of itinerant traders.
32. Briefly explain any four merits and two demerits of Retained Earnings. 6
OR
Yamini bought three hundred 10% preference shares of ABC Ltd. in the year 2016. The face
value of each share is Rs. 100. She didn’t receive any dividend on them during 2016 due to
insufficient profits of the company. In the year 2017, the company made surplus profits.
Calculate the amount of dividend payable to her in the year 2017 assuming that she is
holding:
c. Cumulative Preference Shares
d. Non-Cumulative Preference Shares
33. A new cooperative store has been set up in Delhi through registration under Delhi Cooperative
Societies Act. It has been set up to make bulk procurement of essential consumer goods from
the various wholesalers and supply the same to the public at large on reasonable prices, to
enable those stores to sell the consumer goods to the public at lower prices than those
prevailing in the open market.
In the context of the above case answer the following questions:
e. Identify the type of cooperative society being described in the above lines.
f. State any three features of the type of cooperative so identified in part of the question.
6
34. Danush visited a new restaurant ‘Darbaar’ with his parents. They all liked the food served in
the restaurant. After a week Danush took his friends to ‘Darbaar’ and placed an order for the
same dishes that he had liked during his previous visit. But to his surprise, he found that the
taste of the food was not as good as it was during his previous visit. As a result, he felt very
disappointed.
In the context of the above case, answer the following questions:
g. Identify the feature of services being discussed above.
h. Explain briefly three other features of services. 6

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