Mid- Term Exam 2021-22

Class –XI
Subject: Business Studies
Time: 90 minutes Max. Marks: 40

General instructions:
1. The Question Paper contains 3 sections.
2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.
Section - A

1. Human activities are of ____________ types

(a) One
(b) two
(c) three
(d) four

2. Which of the following cannot be classified as an objective of business?

(a) Investment
(b) Productivity
(c) Innovation
(d) Profit earning

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3. Transfer of interest exists in the case of
(a) Profession
(b) employment
(c) business
(d) none of these

4. Name the two broad categories of business activities.

(a) Trade and commerce
(b) trade and industry
(c) industry and commerce
(d) none of these

5. Which of the following is not a characteristic of business?

(a)Production
(b)Exchange or sale
(c)Wages or salaries
(d)Risk element

6. Which of the following is not a true statement?

(a)The scope of commerce is narrower than business.
(b)Commerce includes trade and auxiliaries to trade.
(c) Foreign trade is purchase and sale by the traders of the same
country.
(d) Traders serve as a link between producers and consumers.
7. Atul is the owner of readymade garments factory. His main motive is
maximizing profits. For this he has given misleading advertisement
and is supplying low quality goods..
Identify the towards whom Atul is not performing his social
responsibility :-
a) Customers
b) Shareholders
c) Government
d) Workers

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8. Cell Ltd., a renowned computer manufacturing company follows the
vision of reaching new heights with its people on its side. It not only
provides various facilities to its employees for 5 years of service but
also protects the natural environment and avoid bad, effluent, smoky
chimneys, dirty working conditions.
Towards which groups the social responsibilities are being
fulfilled by Cell Ltd. :-
(a) Owners & Community
(b) Workers & Community
(c) Shareholders & Consumers
(d) Government & Consumers
9. This is not a benefit of e-business

(a) Convenience

(b) Global Reach

(c) Low personal touch

(d) Customer satisfaction

10 ‘Networked individuals and firms are more efficient than

networthed individuals’ highlights the importance of
(a)Money
(b)Knowledge
(c)Assets
(d)Internet

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11
B2B commerce helps in all these except
(a) Customized production
(b )Improved distribution system
(c) Reduce dependence on single supplier
(d) Online customer surveys

12 Unique enterprise is dealing in auto spares part with the expansion in

business the enterprise found that the decisions are delayed and
level of coordination is coming down. The CEO called for a meeting of
all the managers. Ravi a newly appointed manager suggested that
company should have its own internet so that all the employees can
interact and pass important information to each other through
internet even short meeting of different departments can be
conducted through video conferencing to take fast action. The CEO
liked the idea and installed an internet for connecting all the
employees in line.
Which branch of e-business is suggested by Mr Ravi?

(a)B2B

(b) B2C

(c) Intra B

(d) C2C

13 Assertion (A) Sole Trading Concern is treated as a “One Man Show”.

Reason (R) It is owned, controlled, managed and operated by the
owner all alone.
Codes
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

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14 Members may come and members may go, but the company
continues to exist. Feature highlighted here:-
(a)Perpetual succession,
(b)Formation
(c)Separate legal entity
(d)Artificial person
15 .......................is the most important document that defines the
objectives of the company.

(a)Articles of Association

(b)Partnership deed

(c)Memorandum of Association

(d)Incorporation certificate

16 Which of the following is related to a specific ministry?

(a) Indian Railway.
(b) FCI
(c)Coal India
(d) BHEL
17 Identify the false statement relating to departmental
undertaking:
a. Funding directly from government
b. They have complete autonomy in decision making.
c. Employees are government servants
d. They are accountable to ministry

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18 Find the odd one:
(a) Statutory Corporations
(b) Departmental
(c) Govt. Company
(d) MNCs

19 Read the two statements:

Statement A: Statutory Corporations are enterprises brought into
existence by Special Act of Parliament.
Statement B: Government Companies are not directly
accountable to the Parliament. Now mark the correct option:
a. Both the statements are incorrect
b. Statement A is correct but statement B is incorrect
c. Both the statements are correct but Statement B is not the
correct explanation of statement A.
d. Both the statements are correct and Statement B is the correct
explanation of statement A.
20 Which of the following is not applicable in life insurance contract?
(a) Conditional contract
(b) Unilateral contract
(c) Indemnity contract
(d) None of the above

21 A person gets his stock with Rs.25,000 insured for Rs.35,000.A fire
occurs and the whole stock gets damaged.The insurance
company will pay him only Rs.25,000, the actual value of his stock
and not Rs.35,000.Which principle of insurance is applied in this
case?
(a)Principle of Contribution
(b)Principle of Subrogation
(c)Principle of Indemnity
(d)Principle of Insurable Interest

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22 Geeta has Rs.20,000 in her account. She doesn’t have any use of
these for two years. To earn more interest which type of bank
account she would open with the bank?
(a)Recurring Deposit
(b)Fixed Deposit
(c)Current Account
(d)Saving Account

23 A plant manager gets his stock of goods insured but he hide the fact
that the electricity board has issued him statutory warning letter to
get his factory wiring changed.Later on, the factory catches fire due
to short circuit. Which principle is violated in the case?
(a)Principle of Subrogation
(b)Principle of Utmost Good Faith
(c)Principle of Indemnity
(d)Principle of Insurable Interest

24 AEPS stands for-

(a)Aadhar Enabled Payment System
(b)All time Even Payment System
(c)All Elite Payment System
(d)None of these

Section –B

25 The production of goods takes place in particular locations but they

are used at different places.So ,the obstacle of place is removed by-
(a)Banking
(b)Advertising
(c)Insurance
(d)Transport

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26 Which of the following comes under economic causes of risk?
(a)Flood,famine
(b)Negligence of workers, stoppage of work
(c)Demand for goods, competition
(d)None of these

27 In which form of economic activity code of conduct is prescribed-

(a)Business

(b)Employment

(c)Profession

(d)None of these
28 Recognise the Assembling industry out of these-
(a)Poultry,cattlefarms
(b)Cement,brick
(c)Sugar,cotton
(d)Television,computer

29 Mr X started businesss of buying and selling of refrigerators. The

term for this type of business activity is-
(a)Commerce
(b)Trade
(c)Selling
(d)Transaction

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30 Opportunity for inter-personal touch is
(a)More in traditional business than e-business
(b)More in e-business than traditional business
(c)Same in both
(d)None of the above

31 The Tata Group, founded by Jamshedji Tata in 1868, as a private

trading firm. Presently doing business in different segments like steel,
automobiles, energy, home care products, etc. The group is managed
by professional managers appointed by the Board of Directors. The
business group enjoys global leadership and its main motive is to
earn profit and generate wealth. The group is not accountable to the
general public.
The given case is referring to the working of a---------------------------
-----
(a) Public sector enterprise
(b) Private sector enterprise
(c) Global enterprise
(d) Private company
32
Assertion (A) Sole Proprietorship business does not have a
separate legal entity different from its owner.
Reason (R) Sole trader or proprietor enjoys all the profits of the
business earned during the course of business.
Codes
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

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33 Mr. Lakshit Agggarwal owns an ancestral house in Shimla. On the
advise of his friend he converts it into a lodge after renovation. The
revenue from the lodge helps to supplement his income
substantially. On his death the property (lodge) is inherited by his
three sons in order of their age namely - Lakshay, Luv and Lok who
carry on with the business under the form of Joint Hindu Family
Business. In context of the above case:
Who amongst the three brothers has the right to exercise control
over the family business?
(a) Luv
(b) Lakshay
(c) Lok
(d) None of them
Ritik
34
The shares of government company are purchased in the name of ---
----------------------------
(a) Prime Minister of India

(b) President of India

(c) Governor

(d) Reserve Bank of India

35 Ramesh gets his factory insured against fire of rupees10 lakhs with
insurer ‘A’ and rupees5 lakhs with insurer ‘B’. Ramesh’s factory is
caught by fire and suffered a loss of rupees 6 lakhs. How much
compensation can be claimed from ‘A’ and ‘B’ separately:-
(a) 4 lakhs, 2 lakhs
(b) 3 lakhs , 3 lakhs
(c) 6 lakhs, 5 lakhs

(d) 6 lakhs, nil

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36 Ankur saves Rs.3,000 every month. Which type of Bank Account
he should open with the bank?
(a) Current Account
(b) PPF Account
(c) Recurring Deposit Account
(d) Saving Account

37
A transport company took an accident insurance policy for all its
vehicles. A truck of that company carrying oranges met with an
accident. Due to that accident there was no damage to oranges
but oranges were unloaded from that truck and reloaded to
another. Due to time wasted in unloading and reloading the
oranges got spoiled. Later the insurance company denied to
compensate. Which principle is
related with this case?
(a) Subrogation
(b) Indemnity
(c) Proximate Cause
(d) Insurable Interest.
38 The two ways in which EFT can be done are: NEFT (National
Electronic Fund Transfer) and ----------------------------.

(a) PoS Terminals

(b) RTGS (Real Time Gross Settlement)

(c) AEPS

(d) Mobile Wallets

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39 ------------------------ is a contract whereby the insurer, in
consideration of the premium paid, undertakes to make good any
loss or damage caused by fire during a specified period upto the
amount specified in the policy.
(a) Marine insurance
(b) Life insurance
(c) General insurance
(d) Fire insurance

40 This account can be a combination of fixed deposit account with

savings account.
(a) Multiple Option Deposit Account
(b) Recurring Deposit Account
(c) Current Deposit Account
(d) Bank Draft

41 A firm‘s electronic transactions and networks can be visualised as

extending into all these directions except :-
(a) B2B
(b) B2C
(c) C2C
(d) Intra-B

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42 It refers to the transactions which take place among different
persons or departments within a firm only e.g. the marketing
department can interact with the production department to
inform them about the customer requirements :-
(a) B2B Commerce

(b) B2C Commerce

(c) Intra B Commerce

(d) C2C Commerce

43 Assertion (A) – e-Business has ease of formation and lower

investment requirement.

Reasoning (R) – Unlike host of procedural requirements for

setting up an industry , e-business is relatively easy to start.
.
(a) Both (A) and (R) are true and (R) is the correct explanation of
(A).
(b) Both (A) and (R) are true and (R) is not the correct explanation
of (A).
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true.

44 Responsibility of business towards community does not include:-

(a) To provide right quality of goods and services to the
consumers.
( b). To promote national integration.
(c) To generate employment opportunities.
(d) To help the weaker sections of the society.

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45 Which of the following statements is not true with reference to role
of business in environment protection?

(a) Top management commitment.

(b) Commitment not shared by other employees.

(c) Scientific techniques of disposal of wastes

(d) Participation in government programmes

46 Strong Ltd., a cement manufacturing company earned a profit of

Rs. 50 crores during the year 2013-14. The management decided
to donate 10% of their profit to an orphanage in their locality.
Identify the concept behind this decision.
(a) Profit Earning
(b) Innovation
(c) Social Responsibility
(d) Productivity
47 If business is to operate in a society which is full of diverse and
complicated problems it may have
(a) little chance of success
(b) great chance of success
(c) little chance of failure
(d) no relation with success

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48 Government holds minimum ----------------------------- paid up capital
of a government company.
(a) 49%
(b) 50%
(c) 51%
(d) 26%

Section C

Read the following text and answer question number 49-54 on

the basis of the same.

A group of people in a locality of Delhi used to go for a walk in the

morning. One day their focus of discussion was market prices of
different goods. During the discussion the emphasis is laid on the
point was that goods become very costly by the time they reach the
consumers after getting transported from the producers.
Consequently everyone's budget is getting disturbed. To get rid of
this problem some people suggested that they should join together
to form a society. The society would sell the goods to all the
members as per their requirements after buying them in a large
quantity directly from the producers.
The idea of forming the society immediately prove to be successful.
A special characteristic of this society was that apart from its
members it also sold goods to the other people of the society at
cheaper rate.
what is the liability of the members of the society so formed
explain any two merits of the society so formed
49 Identify the type of the society formed by them:-
(a) Producers cooperative society
(b) Marketing Cooperative society
(c) Consumers cooperative society
(d) Credit cooperative society

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50 Under what act the society must have been formed :-
(a) Cooperative Society Act 1912
(b) Cooperative Society Act 2012
(c) Cooperative Society Act 1932
(d) Cooperative Society Act 1913

51 What is the liability of the members of the society so formed?

(a) Unlimited liability
(b) Limited liability
(c) Restricted liability
(d) Contingent liability

52 In a cooperative society the power to take decisions lie in the

hands of ;-

(a) Board of directors

(b) Elected managing committee
(c) Shareholders
(d) government

53 Registration of cooperative society is compulsory. Therefore it

has -----------------------------------
(a) No separate legal entity
(b) A separate legal entity
(c) Economy in operations
(d) Government Control

54 The main motive of this form of organization is:-

(a) To maximize profits
(b) To provide mutual help to members
(c) Public welfare
(d) Product Innovation

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55 Armaan is very fond of playing indoor games, he requested his
father to buy him some indoor games. His father sold his old
laptop on Olx.com and bought him a new play station from
Cromaelectronix.com. The transaction by Armaan’s father to sell
the old laptop cannot be termed as a business transaction. The
feature of business highlighted here is:
(a) Profit Earning
(b) Element of risk
(c) Economic activity
(d) Dealing in goods and services on regular basis
56 Public sector enterprises are accountable to public
through_________.
(a) Parliament
(b) Government
(c) Public
(d) Media

57 Identify the principle of insurance highlighted in the given

statement: ‘ Insured must have some economic interest in the
subject matter of insurance contract.’
(a) Indemnity
(b) Doctrine of causa proxima
(c) Subrogation
(d) Insurable Interest

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58 Ms.Payal has started a new readymade garment unit. She decided to
open an account in a Nationalized Bank. However, she has no clear
idea about the type of account, which is most suitable to business
people like her. Which account is most suitable for her?
(a) Savings Account
(b) Current Account
(c) Fixed Deposit Account
(d) Multiple Option Account

59
Which of the following is not the the social responsibility of
business towards the consumers?
(A) To make available good quality goods at cheaper rate
(B) To bring out reality in advertisement
(C) To give them a share of profit
(D) To avoid adulteration

60 ‘Emerging mode of business,’ means:-

(a) New branch of business
(b) Latest way of doing business
(c) New business line
(d) Diversifying business

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