KENDRIYA VIDYALAYA SANGATHAN, AGRA REGION

SAMPLE PAPER FOR SESSION ENDING EXAMINATION 2020-2021

CLASS – 11

BUSINESS STUDIES (054)

TIME: 3 HRS MAX MARKS -80

GENERAL INSTRUCTION

1. This question paper contains 34 questions.

2. Marks are indicated against each question.

3. Answer should be brief and to the point.

4. Answers to the questions carrying 3 marks. May be from 50 to 75 words.

5. Answers to the questions carrying 4 marks. May be about 150 words.

6. Answers to the questions carrying 6 marks. May be about 200 words.

7. Attempt all parts of the questions together.

1 Which of the following broad categories of industries covers oil refinery and sugar 1
mills?
a) Primary industries
b) Secondary industries
c) Commercial industries
d) Tertiary industries
2 The capital of a company is divided into number of parts, each one of which is called 1
a) Dividend
b) Profit
c) Interest
d) Share
3 Which of these industries is not reserved for public sector? 1
(a) Atomic enery (b) Air transport
(c) Arms (d) Rail transport.
4 Debit Card and Credit Card also called as 1
(a) Bank Balance (b) Plastic Money

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 (c) Debit Money (d) Smart Money

5 Which of the following is not a benefit of e-business? 1

a)movement towards a paperless societies
b) globalization
c)incongruence between order taking order fulfillment speed
d) convenience
6 Which kind of social responsibility is purely voluntary obligation that an enterprise 1
assumes
a. Economic
b. Discretionary
c. Legal
d. Ethical
7 Funds required for purchasing Current Assets is an Example of: 1
(a) Fixed Capital Requirement (b) Retained Earning
(c) Working Capital Requirement (d) Lease Financing
8 Under Start up scheme Govt. of India offer : 1
( a) Easy Registration ( b) Tax Exemption
( c) No inspection ( d) All of the Above
9 The term ‘redeemable’ is used for 1
a) Preference share
b) Commercial paper
c) Equity shares
d) Public deposit
10 What are the limits of investment in plant and machinery for a micro enterprise? 1
a) Does not exceed Rs 10 lakh
b) Does not exceed Rs 25 lakh
c) More than Rs 10 lakh but does not exceed Rs 2 crore
d) None of the above
11 It was a commercial town and also a major centre for export of stones. 1
a) Peshawar b) Patliputra
c) Mathura d) Mithila

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12 In a general partnership liability of partners is …………….. 1
Or
The most important document used in partnership business is …………..
13 In your neighborhood market, there are shops owned by sole proprietors or big retail 1
organizations run by a company. They belong to which sector?
(a)Public (b) Private
(c) Social (d) Mixed
Or
Railway of India is ……….
a) Departmental undertaking
b) Public corporation
c) Government company
d) None of these
14 The insured is expected to disclose all the important facts related to property insured. 1
Which principle is discussed here?
(a)Mitigation (b) Insurable Interest
(c) Indemnity (d) Utmost Good Faith
15 Which of the following is a type of transaction risk? 1
a. Default on order taking
b. Default on order giving
c. Default on delivery
d. All of the above
16 To ensure fair and regular return on investment is related to which group: 1
a) Customer
b) Employees
c) Community
d) Shareholders
17 ………. Keeps only samples in the shop. 1
a) Company
b) retailer
c) Wholesaler
d) All of the above

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18 Currency used in International business is – 1
a) Domestic currency
b) International currency
c) Crypto currency
d) Visual currency
19 Name the retail organization where same type of commodities are sold at uniform 1
prices located all over the country
a) chain store
b) general store
c) both ( a) and ( b)
d) none of these
20 International trade includes 1
a) import
b) export
c) entrepot
d) all of these
21 “Business exists to serve customers continuously”. In this context, discuss the need of 3
social responsibility.
22 Discuss the importance of Entrepreneurial Development in India. (ANY three). 3
Or
What are the incentives provided by the government for industries in backward and
hilly areas?
23 What is the role of Small Business in improving economic conditions of Rural India? 3
(Any three points)

24 “Some individuals or firms steal data either for personal motive or to harm the 3
business.”
i) Identify and explain briefly the type of e- business risk highlighted in the given
statement.
ii) How this risk can be reduced?
Or

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 Tarang udyog ltd is dealing in auto spare parts with the expansion in business, the
company found that the decision are delayed and level of coordination is coming down.
The CEO called the meeting of all the managers. Mr Sanjeev a newly appointed
manager suggested that the company should have its own interest based communication
system so that all the employees can interact and pass on important information to each
other through it. Even short meetings of different departments can be conducted
through video conferencing to take fast decision .The CEO liked the idea and installed
an interaction based communication system for connecting all the employees online.
a) Which branch of e-business is suggested by Mr. Sanjeev?
b) What are the benefits of e-business? ( any two)
25 There is a fund which is contributed by the owner and remains with the company. Also. 4
This fund stays With the company and the company has no liability to repay the fund.
A. Which fund is being referred to here? Explain
B. Explain two types of fund which is identified above.
or
Explain the factors to be kept in mind before selecting a source of finance.(Any Four)
26 “Profit plays an important role in the business.” Give any four reasons to justify the 4
statement.
27 Life insurance corporation of India is the largest insurance company in India .It was 4
founded in the year 1956 when the parliament of India passed the life insurance of
India act that nationalized the private insurance industry in India. Over 245 insurance
companies and provident societies were merged to create the state owned life insurance
corporation.
in context of the above case:
a) LIC of India is classified as which form of public sector enterprise?
b) State three merits of this form of enterprise.

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28 A group of people in a locality of Delhi used to go for a walk in the morning. After the 4
walk, they would often sit together and discuss the subjects like demonetization,
politics, elections etc. there were about fifty persons in this group. One day, instead of
other subjects, their focus of discussion was ‘Market prices of different goods’. During
the discussion, the emphasis laid on the point was that goods become very costly by the
time they reach customers 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 start an organization. The organization would sell the goods
to all members as per their requirements after buying them in large quantities from the
producers. The suggestion was appreciated by all of them. They all became members of
the organization and encouraged other people also to become its members. In no time,
100 members assembled and the organization was formed. A special characteristic of
this organization was that apart from its members it also sold goods to other people at
cheaper rates.
(a) Identify and explain the type of form of organization formed.
(b) Under what act, the organization must have been formed?
(c) What is liability of the members of the organization so formed?
(d) Explain any one limitation of organization so formed
Or
Rita and Mita are running a confectionery shop in a club .Both have invested a capital
of Rs 5 lakhs each. They share profit and loss in equal ratio.
a) Identify the form of organization under which Rita has promoted their business.
b) State any three merits of this form of organization
29 “Mail order houses provide a lot of convenience to the customers yet they are Not very 4
popular” Explain.

30 Monika is a talented interior designer who has graduated from one of the best 4
Universities in India. She plans to start her own business which is easy to establish and
where she can be her own boss.
a) Identify form of business which is most suitable for Monika? Give reasons.
b.) Explain the characteristics of the form of business identified in the above question.
(any three)

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31 Mr. Tarun took an Insurance policy against his car and after three months he sold it to 6
Mr. Sunil. The car was stolen from outside of Sunil’s house. Tarun made a claim to the
insurance company.
a) Was Mr. Tarun right in making claim? Give reason in support of your answer.
b) Who can claim compensation?
c) Explain any other three principles of insurance?
Or
Dhanwan bank is a popular private sector bank offering varied services to its customer
.It offers many types of bank account. Farhan opened an account in which deposits are
the most liquid and there are no limits to the number of transactions or the amount of
transaction in a day. On the other hand , his mother has opened a type of account where
she can conveniently deposit the money she saves .These account provide cheque
facility and offer lot of flexibility for deposits and withdrawal of funds from the
account. Farhan’s younger brother Sohail has opened a special kind of account wherein
he will deposit Rs 10000 every month for next two years .
a) By quoting lines from the paragraph identify the various types of bank account being
used by Farhan and his family members.
32 Define Retained Earning. Explain its three advantages and two disadvantages. 6
OR
Define Debentures. Explain its three merits and two demerits.
33 Manu and his brother Raju own a large scale retail outlet at a central location in
Amritsar. They deal in varied kinds of products like textile, footwear, cosmetics, etc. 6
which are sold through different divisions within the establishment.
i) Identify the type of retail outlet being described in the above para.

ii) State any three merits and two limitation of the type of retail outlet identified in part
(i) of the question.
34 What is international trade .Explain the advantages of international trade? 6
( Any five)
END OF PAPER

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