KENDRIYA VIDYALAYA SANGATHAN

JAIPUR REGION
SAMPLE PAPER – 1
CLASS: XI
SUBJECT: BUSINESS STUDIES
TIME : 120 min
MM : 40
General Instructions :
● This is a Subjective Question Paper containing 12 questions.
● This paper contains 4 questions of 2 marks each, 4 questions of 3 marks each and 4 questions of 5 marks
each.
● 2 marks questions are Short Answer Type Questions and are to be answered in 30-50 words.
● 3 marks questions are Short Answer Type Questions and are to be answered in 50-80 words.
● 5 marks questions are Long Answer Type Questions and are to be answered in 80-120 words.
● This question paper contains Case/Source Based Questions.
● One internal choice is provided in 3 marks question and two internal choices are provided in 5 marks
questions.

1. Shivani had set up a tiny industrial unit in her village in Andhra Pradesh for manufacturing clothes for 2
kids. Her total investment in sewing and embroidery machinery is about ₹ 3 crores. She availed the
tailoring services of the local people who belong to the weaker sections of society.
State and explain the category into which her tiny industrial unit will be placed as per the Micro, Small
and Medium Enterprise Development Act, 2020.

2. Aarika Traders a trading firm is conducting many activities such as grading of products, packing into 2
smaller lots, storage, transportation, promotion of goods, collection of market information, collection
of small and scattered orders of traders and distribution of supplies to them.
Aarika Traders is running business as one of the links of indirect trade. Name and explain the link.

3. XYZ Ltd., a manufacturing firm, decided to set up a plant in some backward districts of Odisha with 2
investment of ₹ 30 lakhs. The company planned to optimally utilize the local resources so as to
provide best quality products in the market. It has employed the local people who belong to the
scheduled caste and scheduled tribes. It has also planned to open a dispensary for the local people to
gain reputation.
Explain the role performed by small business as highlighted in the case.

4. Sheetal and Shilpi are close business friends engaged in a discussion on benefits of trade.Shilpi feels 2
trade between nations is highly beneficial while Sheetal feels an economy can only develop and grow if
trade within the nation is strong. She also praised the supportive associations for playing a catalytic
role in strengthening trade within the nation to make an important part of economic activity.
Identify and define the type of trade being supported by Sheetal and Shilpi.

5. Bata stores are networks of retail shops owned and operated by Bata India Ltd. Bata stores operate in 3
different parts of the country. One can easily identify Bata stores in any market as they have the same
appearance; even their interior decor is also identical. All the Bata stores are supplied with the footwear
from the head office. The policies for the stores are decided by the head office. All the stores sell goods
at uniform prices.
On the basis of the given information about Bata India Ltd., answer the following questions:
(a) State the type of retail store mentioned in the above case.
(b) Explain any two features of the above retail store.

6. Define Preference Shares. What preferential rights are enjoyed by preference shareholders. Explain. 3
 OR
Explain in brief the characteristics of debentures issued by a company.

7. Briefly explain any three services of wholesalers to retailers. 3

.
8. Rajiv fashion, a reputed garment manufacturing unit needs to find its day to day expenses like wages, 3
rent, maintain stock of raw material, etc. the owner approaches his raw material supplier to give them
credit for two months, so that he can get cloth for making garments without making immediate
payment. The supplier made an inquiry regarding Rajiv and found that his reputation of giving
payment is not very good. In the past the lenders were not very happy.
(a) What source of finance Rajiv is trying to get in the above case?
(b) State and two features of the source mentioned in above case?

9. What are the incentives provided by the Government for industries in backward and hilly areas? 5
OR
What is NSIC? Explain its functions.

10. Briefly explain the benefits of international trade to the nations. 5

11. Distinguish between Owners’ Funds and Borrowed Funds’. 5

12. Star Bazaar ventured into providing an assortment of products made available at the lowest prices, 5
aptly exemplifying its 'Helping you spend less' motto. The store offers customers an electric array of
products that include staple foods, beverages,health and beauty products, vegetables, fruits, dairy
products, consumer electronics and household items at the most affordable prices. Star Bazaar also
provides a
large range of fashionable in-house garments for men, women and children.
(a) Identify and explain the type of fixed shop retailing used by Star Bazaar.
(b) Explain three features of the fixed shop retailing identified above for Star Bazaar.

OR
Sarthak is dealing in goods on a large scale. He buys the goods directly from the manufacturing
industries in bulk and supplies the same to the shops in the local areas. He is not dealing with the
customers directly. He even provides financial support to manufacturers,by providing advances while
placing orders. Sarthak maintains a huge quantity of stock, due to which he has to maintain a large
amount of capital.
On the basis of the given information about Sarthak, answer the following questions:
(a) Which type of business Sarthak is engaged in?
(b) Name the parties between which Sarthak is acting as a Linking pin.
(c) Discuss the services rendered by Sarthak to any one party identified in part (b).