HALF YEARLY EXAMINATION- 2019

CLASS: XI COMMERCE
SUBJECT: BUSINESS STUDIES
SUBJECT CODE: (054)
Time: 3 Hours Max. Marks: 80
General Instructions:

 There are 34 questions. All questions are compulsory.

 Question Nos. 1 to 20 are multiple choice/very short answer type questions of 1 mark each.
Answer to these questions should not exceed 30 words.
 Question Nos. 21 to 25 are short answer –I type questions of 3 marks each. Answer to these
questions should not exceed 75 words.
 Question Nos. 26 to 28 are short answer –II type questions of 4 marks each. Answer to these
questions should not exceed 100 words.
 Question Nos. 29 to 31 are long answer type questions of 5 marks each. Answer to these
questions should not exceed 150 words.
 Question Nos. 32 to 34 are essay type questions of 6 marks each. Answer to these questions
should not exceed 200 words.
SECTION: A
1. Business involves a series of dealing rather than a single transaction. Which characteristic of
business is highlighted here? (1)
2. Simran’s grandfather deals in the business of garments and her father is the member of the
same. She is the only daughter of her parents. Is she eligible to enter into the family
business? Comment. (1)
3. Due to the demonetization of currency, the concept of digital cash is gaining popularity.
What do you understand by digital cash? (1)
4. ‘Rodents Kill Limited’ manufactures toxic chemical mixes to control all forms of pests. the
company aims for profit maximization and has not installed any pollution control devices in
their factory. The toxic waste water of the factory flows into a nearby river and has resulted
in the death of valuable aquatic life. Advise the company regarding their role in
environmental protection. (1)
5. Which of the following forms of businesses is not required to be ethically responsible?(1)
(a) Sole proprietorship
(b) Partnership
(c) Joint stock companies
(d) None of these
6. Which one of the following is an argument given in favour of social responsibility? (1)
(a) Profit maximization
(b) Public support
(c) Lack of social responsibility
(d) Holding business responsible for social problems
7. Primary objective of a business is not social welfare, it is to maximize (1)
(a) Shareholders wealth
(b) Profits
 (c) Taxes
(d) Jobs
8. Tripti is the biggest cardiologist of her town. Identify the type of economic activity
highlighted in the given case. (1)
9. Shivpal is a fisherman in Kerala and owns six fishing vessels. Identify the form of industry
in which he operates. (1)
10. Activities that are undertaken to satisfy social and psychological needs are known as (1)
(a) Economic activities
(b) Professional activities
(c) Non economic activities
(d) Employment
11. The karta of a HUF has absolute power related to all aspects of the business. This makes
decision-making process faster and easier. However, this may also adversely affect the
business because of (1)
(1) Limited managerial skills of karta
(2) Limited resources of the business
(3) Increased loyalty and business
(4) None of the above.
12. Which is the regulatory body for insurance sector in India? (1)
(a) IRBI
(b) IIBI
(c) IRDA
(d) RBI
13. In PQ Ltd., the labourers stopped the work and announced strike because of a disagreement
with the management. Identify the cause of risk being portrayed in the above case. (1)
14. Define one person company. (1)
15. “it is seen that what is being outsourced is the kind of components or work that does not
build much competency and capability of the outsourcing partner beyond the skills needed to
comply with outsourced work.” This statement is pointing towards (1)
(a) Sweat shopping
(b) Resentment in the home countries
(c) Quest for excellence
(d) Fillip to economic development.
16. B2C includes a variety of activities and transactions. Which of the following is not a part of
B2C commerce activities? (1)
(a) Online selling
(b) Online advertising
(c) Customer to business interaction
(d) Customer to customer interaction
17. Ramesh has purchased shares of MN Ltd. Every year he receives notice related to the
Annual General Meeting of the company and exercises his right to vote to select the Board of
Directors. Identify the type of shares purchased by Ramesh. (1)
18. Name the auxiliary to trade that removes the hindrance of time. (1)
19. The existence of the Joint Hindu Family business is permanent. Do you agree? (1)
20. Name the principle of insurance is not applicable to life. (1)
SECTION: B
21. Write three functions of indigenous banking. (3)
Or
Kunal has opened a retail jewellery store. Since the cost of inventory is very high, therefore
his financial advisor has adviced him to take a comprehensive insurance policy covering loss
to property and stock. Kunal, however, is not convinced. Try to convince Kunal by stating
advantages of insurance for a business.
22. Distinguish between preference shares and equity shares.( any 3) (3)
23. Madan was the eldest son in his family. There were three younger brothers Jagdish,
Subhash and Ramesh. Their father Mr. Kundan Lal Bhalla ran a successful jewellery shop
and all the sons participated in the business in varying capacity. Madan and Jagdish looked
after the sales aspect. The business was flourishing under guidance of Mr. Kundan Las.
But, Mr. Kundan Lal met with a tragic accident and died. After his death, the sons decided to
convert their business into Joint Hindu Family Business and Madan, being the eldest male
member, became the Karta of the family. Explain the role of Karta in JHU business to
Madan. (3)
24. Explain briefly the different types of secondary industries. (3)
25. Identify the type of partner and their profit share from the following instances: (3)
(i) Madhu has contributed capital in a partnership firm and she is entitled to share of
profits, but she does not participate in the management of the business.
(ii) Kabir has allowed the use of his name and goodwill for the benefit of the firm.
(iii) Anvi is Ananya’s friend, who is a partner in a partnership firm. On Ananya’s request,
ani accompanies her to a business meeting and actively participates in the meeting,
giving an impression that she is the partner of the firm.
SECTION: C
26. Jagdish runs a real estate brokerage firm. He believes that the only objective of business is to
earn profits. To accomplish the above objective, he often defrauds his customers. Some of
the common business practices followed by him include selling the same plot to more than
one person, quoting exorbitant prices for plots of land to increase his commission, selling
land on the basis of fake papers etc. all the practices, though profitable in the short-run, has
now started to back fire. Jagdish is facing a number of litigations and his profits are also
falling. Advise Jagdish, why being socially responsible is important for a business. (4)
27. Why is there a need of entrepreneurship development in India? (4)
28. Differentiate between Memorandum of Association and Articles of Association on the
following basis: (4)
(i) Objectives
(ii) Relationship
(iii) Necessity
(iv) Alteration.
SECTION: D
29. Subodh belongs to a middle class family. In order to increase his family income, he wants to
start a provision store. As per your judgement, which form of orgnisation, would be best
suited for him and why? (5)
OR
You would like to start a business either as a partnership firm or a cooperative society but
you are in a state of dilemma and would not be able to choose between them. Then in this
case, what will you do?
30. In the back drop of demonetization, the importance of e-banking has increased
tremendously. Explain briefly the services covered by e-banking. (5)
31. Why are e-business and outsourcing referred to as the emerging modes of business? Discuss
the factors responsible for growing importance of these trends. (5)
SECTION: E
32. Nitin, Siddha and Saurabh are planning to enter into a partnership business which deals in
sanitaryware. Their legal advisor, Mr. Dinesh, advises them to get the partnership firm
registered.
(i) In your view, is the registration of partnership firm compulsory?
(ii) Why, according to you, Mr. Dinesh is advising his clients to get their firm registered?
(6)

OR

Distinguish between public company and private company.

33. Explain the main principles of insurance. (6)

34. Define business ethics and briefly explain any five elements of business ethics. (6)
OR
Write a short note on role of business in environment protection.
*****************