WARWIN SCHOOL VAIKOM

CLASS XI
THIRD PERIODICAL EXAM
SUBJECT – BUSINESS STUDIES
2021-22
Time 90 Minutes Max. Mark 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 0.8 marks.
6. There is no negative marking.

Section – A
1. Assertion (A) – Social Responsibility by business enterprises implies that they respect the
aspiration of the society. Reason (R): Business exists only for maximizing profit for its
owners
(a) Both the Statement (A) and (R) are incorrect and (R) is the right explanation of (A)
(b) Both the statements (A) and (R) are correct and (R) is the right explanation of A
(c) Statement (A) is correct but statement (R)is in correct
(d) Both statement (A) and (R) are incorrect

2. Assertion (A) – commerce includes all those activities which are necessary for facilitating
the exchange of goods and services
Reason (R) Business men are engaged in trading activities to make the goods available
markets
(a) Both statement (A) and (R) are in correct and (R) is the right explanation of (A)
(b) Both the statements A and R are correct and (R) is the right explanation of A
(c) Statement A is correct but Statement (R) is in correct
(d) Both statement (A) and (R) are incorrect
3. Assertion A: Joint Hindu family requires at least two members in the family but does not
require any agreement it is governed by the Hindu Succession Act 1956
Reason (R) : The business of Hindu Undivided family can be terminated with the mutual
consent of the members.
(a) Both the statement A and (R) are in correct and (R) is the right explanation of A
(b) Both the statements (A) and (R) are correct and (R) is the right explanation of A
(c) Statement (A)is correct but statement (R) is incorrect
(d) Both statement (A) and R are in Correct
4. Assertion A : Business is Considered a economic activity .
Reason (R) : Any activity is called an economic activity when it is done with a view to
earn profit primarily
(a) Both the statement (A) and (R) are incorrect and (R) is the right explanation of (A)
(b) Both the Statements (A) and (R) are correct and(R) is the right explanation of A.
(c) Statement (A) is correct but statement (R) is incorrect
(d) Both statement (A) and (R) are incorrect
5. Assertion (A) commerce refers to all those activities which are concerned with the
transfer of goods and services from the producers to the consumers. Reason (R)
commerce embraces all those activities which are necessary for maintaining a free flow
of goods and services. It includes trade and auxiliary to trade

(a) Both the statement (A) and (R) are incorrect and (R) is the right explanation of (A)
(b) Both the statements (A) and (R) are correct and (R) is the right explanation of A
(c) Statement A is correct but statement (R) is in correct
(d) Both statement (A) and (R) are in correct.

6. Which of the following does not characterize business activity

(a) Production of goods and services
(b) Presence of risk
(c) Sale of exchange of good and services
(d) Salary or wages

7. Business risk is not likely to arise due to -----------------

(a) Change in government policy
(b) Good Management
(c) Employee dishonesty
(d) Power failure
8. The Uncertainity of rewards and a possibility of loss are known as --------------
(a) Risks
(b) Rewards
(c) Profits
(d) None of these
9. Parties involved in electronic transactions are from with in a given business firm
(a) Intra - C – Commerce
(b) Intra -D - commerce
(c) Intra – B- commerce
(d) Intra- A- Commerce
10. Which of the following has largest number of branches across India?
(a) Postal Offices
(b) Banks
(c) SBI
(d) Insurance companies
11. Insurance is a contract between ------------------and ------------------------
(a) Insurer, insured
(b) Agent, insurance
(c) Insured, insurance
(d) Insurer, family
12. A government company is any company in which the paid up capital held by the
government is not less than
(a) 49%
(b) 51%
(c) 50%
(d) 25%
13. Indian economy is a --------------------------
(a) Socialist economy
(b) Pure Market economy
(c) Mixed economy
 (d) Traditional economy
14. The Shares of a Government company are purchased in the name of which of the
following ?
(a) The Indian Government
(b) The President of India
(c) The Chief Minister of the State
(d) The Managing director
15. What is the limit of members in case of a private company?
(a) 2
(b) 7
(c) 10
(d) 50
16. The life of a sole proprietorship business is ----------------------
(a) Unstable
(b) Stable
(c) Very short life
(d) Long life
17. The maximum number of partners allowed in the banking business are .
(a) Two
(b) Twenty
(c) No limit
(d) Ten
18. A ----------Partner is and owner who has Unlimited liability and is active in managing the
firm
(a) Senior Partner
(b) General Partner
(c) Silent partner
(d) Limited partner
19. Hindu Succession Act was passed in -------------
(a) 1952
(b) 1960
(c) 1932
(d) 1956
20. Which of the following is capable of doing maximum good to society?
(a) Professional Management
(b) Ethics
(c) Business Services
(d) Laws and regulations

21. DTH Services are Provided by---------------------

(a) Transport companies
(b) Banks
(c) Cellular Companies
(d) None of the above
22. What is the full form of www
(a) World wide Width
(b) World wide work
(c) World wild web
(d) World wide web
23. Which is the Central Bank of India
(a) Central Bank
 (b) State Bank of India
(c) Bank of India
(d) Reserve Bank of India
24. Commerce includes activities relating to trade and ---------------- to trade
(a) Supporting
(b) Subsidiaries
(c) Auxiliaries
(d) None of these

Section - B
25. Providing loans and money transfer services to primary and secondary industries belongs
to which type of Services?
(a) Transportation Services
(b) Banking and financing services
(c) Advertising Services
(d) None of these
26. Buying of good from a foreign nation for further selling them to a third nation is known
as
(a) Import
(b) Export
(c) Trade
(d) Entre pot
27. Which one of the following is an economic activity in which specialized knowledge is
required?
(a) Profession
(b) Business
(c) Employment
(d) None of the above
28. Name the two broad categories of business activities
(a) Trade and Commerce
(b) Trade and industry
(c) Industry and commerce
(d) None of these
29. The Karta in Joint Hindu family Business has
(a) Limited liability
(b) Unlimited liability
(c) No liability
(d) Joint liability
30. The Co- Operative Society is required to be registered Under the Co- Operative Societies
Act.
(a) 2013
(b) 1956
(c) 1932
(d) 1912
31. Minimum of Directors required to form a public company is
(a) 3
(b) 10
(c) 7
(d) 50
32. The Head of the Joint Hindu Family Business is called
(a) Proprietor
 (b) Director
(c) Karta
(d) Manager
33. The Act which governs the formation of a partnership Business is the Indian partnership
Act
(a) 1932
(b) 1956
(c) 1949
(d) 1912
34. Who Undertakes the management and control of the affairs of the company on behalf of
owners
(a) Board of directors
(b) Departmental heads
(c) Managing director
(d) Vice President
35. In which insurance loss is not measurable ?
(a) Mediclaim policy
(b) Fire Insurance
(c) Life Insurance
(d) Marine insurance
36. Which is not benefit of out sourcing ?
(a) Focusing of attention
(b) Quest for excellence
(c) Cost reduction
(d) Confidentiality
37. Money with drawn through ATM is -----------type of E – Business Transaction
(a) B2C
(b) B2B
(c) C2B
(d) C2C
38. Certificate of incorporation is issued by---------------
(a) SEBI
(b) BANK
(c) ROC
(d) None of these
39. Maximum directors in Private company
(a) 1
(b) 2
(c) 10
(d) 15
40. Minimum share holders in private company
(a) 2
(b) 5
(c) 7
(d) 3
41. Which of the following is a specific from of business organization where membership is
by birth?
(a) Hindu Undivided family
(b) Sole Proprietorship
(c) Co-operative Societies
(d) Government Company
42. Finance is an asset for a business but sometimes , it may cause risks it is as well. Which of
the following institution help in removing financial hindrances for a business?
(a) SEBI
(b) Amritsar Transport Company
(c) Bank
(d) None of these
43. Primary industry classified into
(a) Genetic and Extractive
(b) Manufacturing and construction
(c) Synthetic and processing industry
(d) None of these
44. Transfer of interest is not possible in case of -----------------
(a) Profession
(b) Employment
(c) Business
(d) None of these
45. The term Business is derived from the word
(a) Financial market
(b) Busy
(c) Buy & selling
(d) Proprietor ship
46. Which of the following economic activity does not require capital ?
(a) Business
(b) Profession
(c) Employment
(d) None of these
47. Which of the following is not concerned with profession?
(a) Manufacturing of good & services
(b) Code of Conduct
(c) Specialized body of knowledge and skill
(d) Formal training
48. --------------is an economic activity
(a) Social Service
(b) None of these
(c) Non profit organization
(d) Employment
Section - C
Read the following text and answer question number 49 -51 on the basic of same

Anmol , Deepak and Anju, after completing civil Engineering , have jointly taken a project
of constructing three government school buildings in a Village near Agra Within the time
Period of 6 Months. As per the written agreement between them, only Anmol and
Deepak will contribute the capital and take all the managerial decision , where as Anju
will contribute capital only but will not be actively involved in Management.

49. What type of Partner Anju is ?

(a) Sleeping Partner
(b) Active
(c) Nominal
 (d) Secret
50. Specify the Kind of Partnership Mentioned in the above case
(a) Limited Partnership
(b) General Partnership
(c) Particular Partnership
(d) Partnership at will
51. Name the agreement which defines the terms and conditions of such partnership
(a) MOU
(b) Partnership deed
(c) Partnership registration
(d) MOA
52. The Payment Mechanism typical to E- Business
(a) Cash on Delivery
(b) Credit and Debit Cards
(c) Cheques
(d) E- cash
53. Providing accurate and up to date information on the financial position of the
company is a responsibility of business towards.
(a) Share holders or owners
(b) Workers
(c) Consumers
(d) Government and Community
54. Social responsibility is
(a) Same as legal responsibility
(b) Narrower than legal responsibility
(c) Broader than legal responsibility
(d) None of the above
55. Which insurance is taken for protection against lost of goods on voyage?
(a) Ship
(b) Freight
(c) Cargo
(d) None of these
56. Which of the following service of banks permits withdrawal of money more than
balance in A/C
(a) Bank draft
(b) Over draft
(c) Fixed deposit
(d) Debit card
57. At the time of loss which amount the insured will get in fire insurance
(a) Policy amount
(b) Actual Loss amount
(c) Policy Amount & Actual Loss amount which ever is less
(d) Both A&B
58. After 1991 numbers of --------------has increased in India
(a) Departmental Undertaking
(b) Government Company
(c) Statutory Corporation
(d) Global Enterprise
59. Under what method payment is made at the time of physical delivery of goods?
(a) Debit card payment
(b) Credit card payment
 (c) Cash on delivery
(d) Prepaid amount
60. Sameer is working in a company as an assistant manager. What reward / return will
he receive for his services?
(a) Profit
(b) Salary
(c) Fees
(d) Interest