CLASS- XI, SET-4

SUBJECT- BUSINESS STUDIES

TIME- 3 HRS M.M.-80
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Q.NO QUESTIONS MARKS
1 Which of the following cannot be classified as an objective of business? 1
(i) Investment (ii) Productivity
(iii) Innovation (iv) Profit earning
2 Business risk is not likely to arise due to 1
(i) Changes in government policy (ii) Good management
(iii) Employee dishonesty (iv) Power failure
3 Provision of residential accommodation to the members at reasonable rates is 1
the objective of
(i) Producer’s cooperative (ii) Consumer’s objective
(iii) Housing cooperative (iv) Credit cooperative
4 A partner whose association with the firm is unknown to the general public is 1
called
(i) Active partner (ii) Sleeping partner
(iii) Nominal partner (iv) Secret partner
5 A government company is any company in which the paid up capital held by the 1
government is not less than
(a) 49 percent
(b) 51 percent
(c) 50 percent
(d) 25 percent
6 Which of the following types of organisation has the capability of expansion of 1
market territory and operates through a network of subsidiaries, branches and
affiliates?
(a) MOFA

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 (b) MNC
(c) Public Sector enterprises
(d) Private sector enterprises
7 Which of the following is not applicable in Life Insurance contract? 1 Page | 2
(a) Conditional contract (b) Unilateral contract
(c) Indemnity contract (d) None of the above
8 CWC stands for 1
(a) Central Water Commission
(b) Central Warehousing Commission
(c) Central Warehousing Corporation
(d) Central Water Corporation
9 The payment mechanism typical to e-business 1
(a) Cash on delivery(CoD) (b) Cheques
(c) Credit and Debit Cards (d) E-cash
10 It is not an application of e-business: 1
(a) Online bidding (b) Online procurement
(c) Online trading (d) Contract R and D
11 Which of the following can explain the need for pollution control? 1
(a) Cost savings (b) Reduced risk of liability
(c) Reduction of health hazards (d) All of them
12 Which of the following is capable of doing maximum good to society? 1
(a) Business success (b) Laws and regulations
(c) Ethics (d) Professional management
13 Public deposits are the deposits that are raised directly from 1
(a) The public (b) The directors
(c) The auditors (d) The owners
14 Debentures represent 1
(a) Fixed capital of the company
(b) Permanent capital of the company
(c) Fluctuating capital of the company
(d) Loan capital of the company

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15 Give full form of WTO. 1
16 Tell (any one) parameter used to measure the size of business? 1
17 Tell the categories of internal trade. 1
18 Give an example of fixed shop. 1 Page | 3
19 Name any two documents regarding import export procedure. 1
20 What is international trade? 1
21 State the different types of economic activities. 3
22 A person gets his stock of goods insured, but he hides the fact that the electricity 3
board has issued him statutory warning letter to get his factory’s wiring changed
later on, the factory catches fire due to short circuit. Can he claim compensation?
State the name of “Principle”.
OR
Anju has taken from Avi against the security of the factory. Can Avi take a fire
insurance policy of that factory? Why?
23 State any three importance of NSIC. 3
OR
Describe the role of small business in rural India?
24 How does market information provided by wholesalers benefit the 3
manufacturers?
25 If registration is optional, why do partnership firms willingly go through this 4
legal formality and get themselves registered? Explain.
26 Why is the government company form of organization preferred to other types in 4
the public sector?
27 4
28 What preferential rights are enjoyed by preference shareholders? Explain. 4
OR
Explain the importance of finance for running the business smoothly.
29 Explain the different types of retail trade. 4
OR
What are merits and demerits of large retailers( two each)

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30 Describe the benefits of international trade to the business firm. 4
31 State the important privileges available to a private company. 6
OR
What do you mean by incorporation of a company? What are the steps involved Page | 4
in incorporation of a company?
32 Build up arguments for social responsibilities of a business. 6
33 Discuss the sources from which a large industrial enterprise can raise capital for 6
financing modernization and expansion.

OR

Differentiate between owners fund and borrowed fund.

34 Explain the objectives of DICs. 6

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 CLASS – XI, SET- 4
BUSINESS STUDIES (054)

MARKING SCHEME

Q.NO. ANSWER MARKS

1 (i) 1
2 (ii) 1
3 (iii) 1
4 (iv) 1
5 (b) 1
6 (b) 1
7 (c) 1
8 (c) 1
9 (d) 1
10 (d) 1
11 (c) 1
12 (c) 1
13 (a) 1
14 (d) 1
15 World trade organisation 1
16 Following parameters may be used to measure the size of business: 1
Number of workers employed, Size of plant and machinery, Total output,
Inventory size
17 Retail Trade and Wholesale Trade 1
18 Any example 1
19 Letter of credit, shipping bill…any document 1
20 Trade beyond geographical boundaries is called international trade. 1
21 Business, profession and employment 3
22 No, he cannot claim the compensation because the principle of utmost good 3
faith is not followed. According to this principle, it is the duty of the insurer
and insured to voluntarily make full accurate disclosure of all facts,
material to the insurance contract.
OR
No, because of Principle of Insurable Interest. In case of fire insurance,
insurable interest must be present both at the time of taking policy &
claim.
23 Any three points of importance of NSIC 3

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 OR
1. generate employment opportunities:
2. enable equitable income distribution:
3. help to accelerate growth
4. mitigate disguised unemployment and alleviate poverty
24 1. The tastes and preferences of customers, 3
2. Conditions prevailing in the market
3. Level of competition in the market and
4. Types of goods and features demanded by consumers.
5. This information helps manufacturers to cater to the
(any three services)
25 Consequences of Non-registration of partnership firm 4
(any four points)
26  It is registered or incorporated under Companies Act. 4
 It has a separate legal entity.
 Management is regulated by the provision of Companies Act.
 Employees are recruited and appointed as per the rules and
regulations contained in Memorandum and Articles of Association.
 The government company obtains its funds from government
shareholdings and other its private shareholdings. It can also raise funds
from capital market.
27 4
28 1. They get dividend at a fixed rate and dividend is given on these 4
shares before any dividend on equity shares.
2. When company winds up, preference shares are paid before equity
shares.
3. Preference shares also have a right to participate in excess profits
left after payment being made to equity shares.
4. They also have a right to participate in the premium at the time of
redemption. In lieu of these preferential rights, their voting rights are
taken i.e. they are not eligible for voting
OR
Any four points of importance
29 Itinerant and small scale 4
OR
Any two merits and demerits each
30 Any four benefits 4
31 Any 4 privileges 6
OR
1. Filling of documents

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 2. Payment of fees
3. Certificate of incorporation
32 Arguments for Social Responsibility: 6
1. Justification for Existence and Growth:
2. Avoidance of Government Regulation:
3. Maintenance of Society:
4. Long Term Interest of the Firm:
5. Availability of Resources with Business
6. Converting Problems into Opportunities
33 1. Equity Shares 6
2. Preference Shares
3. Debentures
4. Loans from Financial Institutions
5. Loans from Commercial Banks
6. Retained Earnings
OR
Any six points of difference
34 Any six objectives. 6

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