Navodaya Vidyalaya Samiti

First Term Examination (2022-23)

Subject- Business Studies (054)
Class- XI
Time: 3 Hrs. M.M. 80
General Instructions:

(i) Question number 1 to 20 are of Multiple Choice Questions and carrying 1 mark each.
(ii) Question number 21 to 24 carrying 3 marks each.
(iii) Question number 25 to 30 carrying 4 marks each.
(iv) Question number 31 to 34 carrying 6 marks each.
(v) Attempt all parts of a question together.
1. Which of the following is not known as Service Industry? 1
(a) Processing Industry (c) Insurance Industry
(b) Banking Industry (d) Advertising Industry
2. The occupation in which people work for others and get remuneration in return is known as 1
(a) Business (b) Employment (c) Profession (d) None of these
3. “On account of number of losses, the personal properties of a Sole Proprietor can be used for
repayment to the creditors.” This statement is related with which characteristics of Sole Trade? 1
(a) Sole Management (c) Unlimited Liabilities
(b) Undivided Risk (d) Freedom in Selection of Business
4. The ‘Karta” in the Joint Hindu Family Business has ……………………. 1
(a) Limited Liability (c) Unlimited Liability
(b) Joint Liability (d) No Liability
5. In a cooperative society the Principle followed is ………………………… 1
(a) One share one vote (c) No Vote
(b) Multiple Vote (d) One man one vote
6. Mr George got his goods worth ₹ 2,00,000 insured for ₹ 2,50,000. After some time all his goods got
destroyed. In this situation, the insurance company paid him ₹ 2,00,000 only, whereas the insurance
of his goods done was of ₹ 2,50,000.
Due to which Principle of Insurance did it happen? 1
(a) Principle of Insurable Interest (c) Principle of Subrogation
(b) Principle of Indemnity (d) Principle of Contribution
7. What are the minimum number of members to form a public company? 1
(a) 2 (b) 3 (c) 5 (d) 7
8. Business has to safeguard not only the interests of the parties but the interests of several other parties
also. In the other parties are included the employees, consumers, suppliers, competitors, government,

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 community and the world. Today, only that business is regarded as good which along with the
interests of the owner takes care of the interests of all these parties also.
Which concept of business has been talked about in this statement? 1
(a) Social Responsibility of Business (c) Business as a Profession
(b) Emerging Modes of Business (d) Profit Motive of Business
9. Which is the following is not an advantage of MNCs? 1
(a) Increase in foreign investment (c) Increase in Employment
(b) End of Monopoly (d) Danger for Domestic Industries
10. A Public Company is related with 1
(a) Private Sector (c) Government Undertaking
(b) Public Sector (d) All of the above
11. Which of the following is not a business service? 1
(a) Banking (b) Insurance (c) Production (d) Communication
12. Which of following is not covered under the Contract of Indemnity? 1
(a) Life Insurance (c) Fire Insurance
(b) Theft Insurance (d) Marine Insurance
13. Which of following is the subject matter of Marine Insurance? 1
(a) Hull (b) Cargo (c) Freight (d) All of the above
14. Which of the following do not come under E-Banking? 1
(a) Electronic Fund Transfer (c) Debit Card
(b) Automated Teller Machine (d) Bank Overdraft
15. B2B Commerce means 1
(a) Firm’s interaction with other businesses (c) Firm’s Interaction with its customer
(b) Firm’s internal processes (d) None of the above
16. Ethics are related to 1
(a) Medical (b) Law (c) Business (d) All of above
17. Environment protection means making the environment free from 1
(a) Air Pollution (c) Water Pollution
(b) Noise Pollution (d) All of the above
18. Which of the following is not the social responsibility of business towards the consumers? 1
(a) To bring out reality in advertisement (c) To make available good quality of goods
(b) To give them a share of profit (d) To avoid adulteration
19. In order to call a company, a Government Company, how much minimum share of capital is
necessary for the Government ownership?
(a) 49% (b) 51% (c) 75% (d) 25%
20. It refers to socially determined moral principles which govern the activities of a business. 1
(a) Social Responsibility of Business (c) Business Ethics

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 (b) Environment Protection (d) None of these
21. Write any three limitations of Cooperative Society. 3
22. Differentiate between Company and Partnership. 3
23. Define Business Services. Explain the nature of Business Services. 3
Or
Define ‘Registered Post’, ‘Mail’ and Parcel.
24. The JP General Store does retail business of general goods at a very large scale. This firm has to pay
a lot of attention to advertisement. The owners of the firm are aware that if they spend more time on
advertisement, some other important activities are left weak. One of the partners of the firm
suggested that if the job of advertisement is handed over to some Advertising Company, they will be
relieved of this important activity. By doing this, they will get the benefit of specialisation and their
expenditure on this activity will be less also. The firm implemented this scheme, the results of which
proved to be quite positive. Several other firms in the market also adopted this scheme. Today, this
‘Emerging Mode of Business’ is gaining recognition.
Identify this Emerging Mode of Business and explain any two needs of this ‘Emerging Mode of
Business’. 3
Or
What are the benefits e-business? Explain any three.
25. “A person gets his wife’s life insured. Two years after, he divorced his wife. Three years after this his
ex-wife dies.”
Will the insurance company pay compensation to the husband on the death of his ex-wife? If yes,
then give the reason and according to which principle it will be paid? 4
Or
Differentiate between Life Insurance and General Insurance.
26. Categorise the following activities into Business, Profession and Employment. 4
(i) Albert is selling books on behalf of his employer.
(ii) Rohit is running his private clinic.
(iii) Salim is selling toys in his shop.
(iv) Mohit works in a factory.

Or

Explain any four features of Employment.

27. Pulkit and Philip are two friends. Both of them are doing different business. Pulkit’s business is
facing change in fashion and change in prices and he is also very upset because of tough competition.
On the other hand, there is a great hurdle is there is Philip’s business because of the dishonesty of
employees, dishonesty of customers and stricker and lockouts.

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 Point out the type of business risk the two friends are suffering from. Also explain these both
risks pointed out. 4
28. State four advantages of Departmental Undertaking. 4
29. Your friend, Edmund, has got such a plastic card as gives him the facility of buying goods
immediately without cash. This amount of cash he will deposit on a future date in that very bank
issued the card to him.
Identify this card and describe it and explain any one merit of this card. 4
30. What are the benefits of e-Business? Explain. 4
31. One of your friends is running a business of tea. For increasing the sale of the product the business
has decided to provide good salary to employee and improved the quality of product also. For this
purpose the satisfaction of customer was most cared. The business also paying the tax to the
government timely. The business also decided to plant 1000 trees in the local area of that business to
protect the environment. In this way the business is providing better return to owner of the business.
Define Social Responsibility of Business and Identify the responsibility fulfilled towards various
parties by the business in the above paragraph by quoting the lines. 6
32. A famous doctor charges highly for consultation from his patients and refuses to treat the poor
patients without consultation charges. He pays attention to the medical representatives and agents of
Pharma Co. and takes gifts and commission from them also.
In your views, is it professional behaviour of a doctor? Give reason. Is he following the code of
conduct of doctor? Which characteristics of profession he is not following? Explain.
Or
Differentiate between Business, Profession and employment. 6
33. Explain the following principle of Insurance:-
(i) Principle of Utmost Good Faith
(ii) Principle of Indemnity
(iii) Principle of Contribution

Or

What do you mean by Bank? Explain the functions of Bank. 6

34. “Business is the part of society.” Explain this statement in the context of Social Obligation of
Business. Also explain the case against Social Responsibility.
Or
“It refers to socially determined moral principles which govern the activities of a business.” Which
concept is defined in this statement? Also explain the elements of identified concept. 6

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