ST. WILFRED’S SR. SEC.

SCHOOL
Annual Examination, 2020-21
Subject: Business Studies
Class: XI
Time: 3 Hours SET- B MM: 80

General Instructions:

• Marks for questions are indicated against each question.

• Question No 1–20 are objective type/MCQ questions of 1 mark each. (Word Limit 1 word
to 1 sentence)
• Question No 21-25 are short answers of 3 marks each. (Word Limit 50 -75 words)
• Question No 26–28 are short answers of 4 marks each. (Word Limit 150 words)
• Question No 29–31 are long answers of 5 marks each. (Word Limit 150 words)
• Question No 32–34 are long answers of 6 marks each. (Word Limit 200 words)

Q. No. Questions Marks

Q.1 Why should a business earn profit? 1 Mark

(a) To provide return to investors.
(b) To provide funds for future growth.
(c) To increase the reputation of business.
(d) All the above
Q.2 Following are the characteristics of business risks. Identify the 1 Mark
incorrect one
(a) Loss is the reward for risk bearing
(b) Business risks are due to uncertainties
(c) Risk is an essential component of every business
(d) Degree of risk depends mainly upon the nature and size of
business

Q.3 It can continue as long as the partners want and is terminated 1 Mark
when any partner gives a notice of withdrawal from partnership
to the firm.
(a) Partnership at will
(b) Particular partnership
(c) General Partnership
(d) Limited Partnership
Q.4 In case of a government company at least ____________ 1 Mark
percentage of the paid up capital is held by the government
Q.5 Which of the following is not a digital mode of payment (a)U 1 Mark
Pay app (b) NEFT (c) Bank Draft (d) E-Wallet
Q.6 Creating blogs to form consumer's forum or pressure groups is an 1 Mark
example of
(a) B2C commerce (b) B2B commerce (c) C2C commerce (d) B2E
commerce

Q.7 If business is to operate in a society which is full of diverse and 1 Mark

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 or failure
Fill in the Blanks-
Q.8 Mining is an example of ----------------- Industries. 1 Mark

Q.9 The liability of members of a cooperative society is ......... to the 1 Mark

extent of their capital contribution.

Q. 10 The employee of a statutory corporation are not a ___________. 1 Mark

Q. 11 Investment requirement is -------------------- in e- business in 1 Mark

comparison of traditional business.

Q. 12 Charging reasonable prices for goods and services is a/an 1 Mark

--------------- responsibility of a business

State True or False- 1 Mark

Q. 13 Business risks due to natural cause can be controlled. 1 Mark

Q. 14 It is optional for a partnership firm to get registered. 1 Mark

Q. 15 India Post is an example of Statutory corporation. 1 Mark

Q. 16 Departmental Undertakings are most suitable public sector 1 Mark
enterprises from the point of view of national security.

Q. 17 Current account is most suitable for mobilization of savings of the 1 Mark

public.

Q. 18 Social responsibility is same as legal responsibility. 1 Mark

Match the column- 1 Mark

Q. 19 1 Mark
Column A Column B
(a) Formed by an agreement (i) Joint Stock Company

(b) Not sharing profits (ii) cooperative society

( c) One man one vote (iii) partnership business

(d) Transferability of shares (iv) Sole Proprietorship

(A) a-ii , b-iv , c-i , d- iii

(B) a-iii , b-iv , c- ii , d-i
( C) a-iv, b-ii, c-i , d-iii
(D)- a-iii , b-ii , c-iv , d-i
Q. 20 1 Mark
Column A Column B
(a)Responsibility towards the (i)To ensure safety of
society investment
(b) Responsibility towards the (ii)To pay taxes regularly and
shareholders honestly
( c) Responsibility towards the (iii) To provide opportunities
Government for personal growth and
development

(d) Responsibility towards the (iv) To protect the

workers environment
(A) a-ii , b-iv , c-i , d- iii
(B) a-iii , b-iv , c- ii , d-i
( C) a-iv, b-i, c-ii , d-iii
(D)- a-iii , b-ii , c-iv , d-i

Q. 21 Ms. Payal has started a new readymade garment unit. She 3 Marks
decided to open an account in a Nationalised Bank. But she has no
clear idea about the type of account which is most suitable to
business people like her. Which account is the most suitable for
her? Why?

Q. 22 Gas authority of India (GAIL) is carrying on various projects of 3 Marks

energy and power .Majority of its shares are held by government (2+1/2+1
/2)
of India. It is registered under Companies Act ,2013 and enjoy
 all the characteristics of a company. The board of directors are
appointed by the government. The Board and Shareholders are
responsible for the efficient working of the company. The
company prepares its annual report and submit to appropriate
authorities.
a) Name and explain the types of public sector enterprise
referred in above Para.
b) Government buys shares in whose name?
c) Where does a government company submit their reports?
Q. 23 Identify the scope of e-business highlighted in following cases: 3 Marks
(a) Mr lakshay, the CEO of multinational company informed
all employees for upcoming training programme through
e-mail.
(b) Gurpreet, brought the washing machine from a reputed
company which stops after use of few days. He filed the
case on toll free number of customer care . But had not
recieved any good feedback . he decided to write an email
to quality control manager of the company.
(c) The head marketing department conducted a video
conferencing informing the production and finance
manager about customers requirements and expectations.

Q. 24 Mr. Raja, a traditional businessman, wants to conduct E- 3 Marks

business. How will you encourage him by stating any two
benefits of e-business.
Or
Explain any three limitations of e-business.
Q. 25 Yash is a student of class XII Commerce and he is good in 4 Mark
studies. His father gifted him a pen on his birthday. The cost of
pen is Rs. 80. After few days Yash sold his pen to his friend
Sumit for Rs. 100. He was very happy to earn profit of Rs. 20.
After completed his studies he has started a pen manufacturing
company in the name of M/S Yash Pvt. Ltd. Due to good image
of his pen, his sales increased day by day and he is earning huge
profits. Then he has decided to give scholarship to weak girls
child of his school.

(a)Can the transaction between Yash and Sumit be termed as

business transaction? And Why?

(b)Can the transaction made by M/S Yash Pvt. Ltd. be termed

as business transaction? Why?
Q. 26 State any four difference between equity shares and preference 4 Mark
shares.

Q. 27 Registration of a partnership firm is not compulsory but it is 4 Mark

advisable to get it registered. Explain in brief the consequences
of non registration of a partnership firm.

Q. 28 ‘A promoter is like a parent to a joint stock company ‘.explain in 4 Marks

detail the role of a promoter and write any three functions of a
prompter.
Or

Explain the role of small scale industry in the development of the

country’s economy.
Q. 29 Explain in brief the principles of insurance. 4 Marks

Q. 30 What is meant by Statutory Corporation? Explain any two 4 Marks

merits and two demerits of Statutory Corporations.
Q. 31 Explain the channel of distribution with the help of flowchart. 6 Marks
Or
What do you mean by trade credit? Explain its features.
Q. 32 Jasbeer is a farmer. His younger brother, Ajeet is a company 6 Marks
secretary while his sister Geeta is a nurse in a hospital. Name the
economic activities in which they are engaged and differentiate
among them on the basis of-
(a) Nature of work (b) Transfer of interest ( c) Risk element
(d) Qualification (e) Capital
Q. 33 Why is insurance a necessity rather than a choice for a business? 2+4= 6
Explain and write the functions of insurance. Marks
Q. 34 Leena is a sole proprietor .Over past decade ,her business
has grown from operating a neighborhood corner shop 6 Marks
selling accessories such as artificial jewelry ,bags, hair
clips and nail art to a retail chain with three branches in the
city. She finds it difficult to handle varied functions in all
the branches all alone .She looks into taking her friend,
Ritu , into business. Ritu has completed her MBA and will
prove to be a great help to Leena.

(a) Explain two benefits of remaining a sole proprietor

(b)Which form of business organization Leena is looking
forward to?
(c ) Explain how the above form will help in her
business?(any three)
Or
Explain the following-
a) Prospectus
b) Minimum subscription
c) Article of Association
d) Memorandum of Association
e) DIC
f) GDR