DELHI PUBLIC SCHOOL, SILIGURI.

Periodic Assessment / Unit Tests – I Session : 2021 – 22

Class : XI COM Subject : BUSINESS STUDIES
Date : 02.08.2021
Time : 40 Minutes. Max. Marks : 20

General Instructions:
1. This question paper contains 13 questions.
2. Marks are indicated against each question.
3. Answer should be brief and to the point.
4. Answer to the question carrying 3 marks should be from 50 to 75 words.
5. Attempt all parts of the questions together.
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1. Arun, one of the student of class XI were asked to describe the various types of intermediaries
who played a prominent role in the promotion of trade, spoke in particular about the members of
a wealthy business, banking and money lenders family institution that exercised great influence
during the Mughal period and the days of the East India Company.
Identify the type of intermediary being highlighted by Arun.
(a) Commission Agents (b) Brokers
(c) Jagat Seths (d) Distributors (1)

2. Jay is dealing in luxury items through online portal. Due to outbreak of pandemic the demand
for such products has declined.
The concept of business being described in the above lines is ……………………………
(a) Auxiliary to trade (b) Business risk
(c) Entrepot trade (d) Social responsibility (1)

3. Ritesh is a shareholder in a company holding 5000 shares. The face value of the share is Rs.
100 each, on which he has already paid Rs. 70 per share. His liability in the event of losses or
company’s failure to pay debts can be only up to…………………………………
(a) Rs. 3,50,000 (b) Rs. 70,000
(c) Rs. 1,50,000 (d) Rs. 5,00,000 (1)

4. Seema owns a Real Estate business and is well known for her work. Her friend Reema was
planning to buy a property for her business and requested Seema to accompany her to the
business meeting scheduled for the property deal. During the meeting, Seema gave an
impression to the seller that she was also a partner in Reema’s business and relying on her
goodwill the seller agreed to accept the payment for the property in a deferred mode.
Identify the type of partner Seema is being described as in the above lines.
(a) Active partner (b) Partner by estoppel
(c) Sleeping partner (d) Nominal partner (1)

5. Fill in the blank:

The liability of the members of a Co-operative Society is ………………………. to the extent of
the amount contributed by them as capital. (1)

6. Name the branch of commerce which removes hindrance of place. (1)

7. Match the following by choosing the correct option:

Column A Column B
(i) Hunting (1) Tertiary industry
(ii) Fish hatchery (2) Manufacturing industry
(iii) Production of paper (3) Genetic industry
(iv) Packaging (4) Extractive industry

(a) (i)- (1); (ii)- (2); (iii)- (3); (iv)- (4) (b) (i)- (2); (ii)- (3); (iii)- (4); (iv)- (1)
(c) (i)- (3); (ii)- (4); (iii)- (1); (iv)- (2) (d) (i)- (4); (ii)- (3); (iii)- (2); (iv)- (1) (1)
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8. Ananya was doing a research on banking sector for her assignment. While browsing through
the website of Reserve Bank of India, she came across a specimen of a type of Hundi which is
like any other bearer instrument and is payable to the holder or bearer.
In context of the above case :
(a) What is a Hundi?
(b) Identify the type of Hundi being described above. (2)

9. Explain the following terms in brief:

(a) Artificial person (b) Perpetual succession (2)

10. Jain brothers inherited some ancestoral property. They decided to form a Hindu undivided
family consisting of four male members. Mr. Raman Jain was eldest brother so he became ‘Karta’.
The business took a loan of Rs. 20 lac from Canara Bank, which was to be returned within 5
years. Due to poor financial position of the business, they were unable to repay the loan. Jain
brothers sold the ancestoral property for Rs. 10 lac and paid the amount to Canara Bank. The
bank filed a case for recovery of balance amount. Mr. Raman Jain pleaded the court that the loan
was taken for the purpose of business; so all members of business are liable to repay. The court
said all members are responsible only to the extent of their share in business and business
property is already sold, but you being Karta will have to repay whole amount even by selling
your personal property.
(a) In the above Para, who has unlimited liability?
(b) Was the decision of court to claim only from Raman is justified? Give reason. (2)

11. Give an explicit example of each of the following:

(a) Extractive Industry (b) Pure business risk (2)

12. Business involves “only sale and exchange of goods for profit”. Do you agree with this? (2)

13. Rakesh, Sudhir and Mohit have mutually decided to set up a new small scale handicraft
factory in a remote rural area in Haryana. As it will not only help to meet the growing demand for
their products but also generate different kind of employment opportunities in the village and
foster its economic development. They have decided to promote their business in the form of
partnership. Sudhir’s association with the firm will be hidden from the general public. Mohit will
not take part in the day to day activities of the business due to health issues. However, Rakesh
will take actual part in carrying out business of the firm on behalf of other partners.
In the context of this case , briefly explain the various types of partner which are being
mentioned in the above paragraph. (3)
OR

According to Partnership Act, 1932, it is not compulsory for a partnership firm to get itself
registered, then why do partners prefer to get the firm registered? Explain it by giving three valid
reasons. (3)

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