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Final Exam 2012-13

Class XI
Subject Business Studies
Date 8th February 2013
Maximum Marks : 90
Time : 3 hrs
General Instructions:
(i) Answers to questions carrying 1 mark may be from one word to one sentence
(ii) Answers to questions carrying 3 marks may be from 50-75 words.
(iii) Answers to questions carrying 4-5 marks may be about 150 words.
(iv) Answers to questions carrying 6 marks may be about 200 words.
(v)Attempt all parts of a question together and in sequence.
Section A ( 1 mark each)
1.Name the economic activity where specialized knowledge is used.
2. Under which cause the risk due to earthquake is covered?
3.What is unlimited liability?
4. Name the document which invites subscription of shares from public?
5.What minimum percentage of shares government should own in a company to be called a government company?
6.To which insurance policy the principle of subrogation does not apply?
7.What is sweat shopping?
8. Why is cost of production in small business very low?
9. Why are the chances of dead stock reduced in case of chain stores?
Section B ( 3 marks each )
10. Explain the classification of sources of funds on the basis of period.
11. Explain three steps taken by business enterprises for environmental protection.
12. Explain three arguments for social responsibility .
13.Explain the benefits of joint venture enterprises.

14.Differentiate between Life , Fire and Marine insurance on the basis of subject matter, insurable
interest and duration.
Section C ( 4 marks each)
15. Diferentiate between partnership firm and company on the basis of regulating act, legal entity , liability and
number of members.

16. Discuss four formalities involved in getting an export licence.

17. Discuss two problems of public sector enterprises and two reforms in the new industrial policy 1991.
18. Explain the following documents related to export :
(a)Certificate of origin (b) Mates receipt (c) Bill of lading (d) Letter of credit
Section D ( 5 marks each)
19. Write three advantages and two disadvantages of commercial banks as a source of funds.
20. Explain any five problems being faced by small business in India.
21. Evaluate two needs of outsourcing and discuss its three limitations.

22.Define a wholesaler and a retailer. Now explain two functions each of wholesaler to retailer and of
retailer to consumer.

Section E ( 6 marks each)

23. Explain six characteristics of business ?
23. Describe six factors to be considered before starting a new business ?
24. Ramesh an automobile engineer and Suresh an electrical engineer are friends, having worked in an MNC they
have made substantial savings. Now they want to start a business of car repair. Which form of business
organization is suitable for them ? Justify your answer by stating three advantages and disadvantages each of your
24. Explain six important steps of capital subscription in the formation of a public limited company?
25. A factory owner gets his stock of goods insured , but he hides the fact that the electricity board has issued him a
statutory warning letter to get his factory`s wiring changed. Later on , the factory catches fire due to short circuit
of wiring. Can he claim compensation from the insurance company ? Explain the principle which supports your
decision .
25. Ram has a property of Rs One and half lakh. He gets an insurance policy for Rs 1 lakh with insurer X & Co
and Rs.50,000 with insurer Y & Co. A loss of Rs.75,000 occurs to the house due to fire. Can Ram claim the loss of
Rs75,000 from both the insurance companies ? How much can he claim from both the insurance companies?
Explain the principle under which such claims can be settled?
26. Explain in detail the following sources of finance:
(i) GDR (ii) FCCB (iii) Public Deposit (iv) Debentures (v) ICD (vi) Retained profit
26. Vishal Engineering Ltd., a reputed profit making firm has recently declared dividend to its shareholders. Now
it is planning to takeover another firm Ace Construction, then set up a new factory to expand the business for
which it needs funds and also to increase the stocks of its spare parts for the tractor division
What sources of finance do you think will be the best for each of the above mentioned requirements and why?
Give two reasons each for your answer from the options below:
Trade credit or (ii) Long term bank loan (from IFCI) or (iii) Issue of equity shares
27. Explain in detail the following documents used in internal trade :
(i) FOB (ii) CIF (iii) Railway Receipt (iv) Invoice (v) Credit Note (vi) E & OE
27. Explain four advantages and two disadvantages of vending machines. What are the four advantages and two
disadvantages of mail order business ?