DELHI PUBLIC SCHOOL, KALYANPUR

CLASS- 11 FINAL EXAMINATION

BUSINESS STUDIES TIME-3HRS
M.M-80
TOTAL PAGES-8 TOTAL QUESTIONS-34
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General Instruction
1.Answers to questions carrying 1 mark may be from one word to one
sentence.
2.Answers to questions carrying 3 Marks may be from 50 to 75 words
3.Answers to questions carrying 4-5 marks may be about 150 words
4.Answers to questions carrying 6 marks may be about 200 words.

Q. 1 A start up company can remain in the status of a Start up company only

up to a maximum period of-------from the date of incorporation.
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a. 7 years b 10 years
c. 3 years d. 5 years

Q.2 ‘ Reliance Smart Point’ and ‘Walmart’ are the examples of the following
internal trade 1

a. Wholesale trade b.Departmental stores

c. Chain stores d.Multiple shops

Q . 3 Match the Intellectual Property in Column I with their respective field of

achievement in Column II 1

COLUMN I COLUMN II
A)Patent i)Literary and artistic work

B)Trademarks ii) Inventions

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 C)Copyright iii) Designs

a. i,ii,iii b. ii, i,iii

b. iii,ii, i d.. ii,iii,i

Q.4 In the question given below, there are two statements marked as
Assertion (A) and Reason ( R). 1
Read the statements and choose the correct option:
Assertion (A): Wholesalers provide services to manufactures

Reason ( R) : They enable the buyers to buy products as and when needed.

Options:

a. Both A and R are true and R is the correct explanation of A.

b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.

Q.5 Wholly owned subsidiaries are the companies ------------- 1

a. Whose 50% shares are held by the the parent company
b. Whose 50% preference shares are held by the parent company
c. Whose 100% shares are held by the parent company
d. Whose 100% preference shares are held by the parent company

Q.6 Which of the following is not required in case of an import transaction:

a. Bill of lading
b. shipping bill
c. certificate of origin

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d. shipment advice

Q7. Match the argument for social responsibility in Column I with its respective
justification in Column II 1
    COLUMN - I                                                                           COLUMN - II

(a) Avoidance of government regulation (i) Businesses have a pool of

managerial talent and capital                 

(b) Maintenance of society                              (ii) They limit freedom

(c) Availability of resources with business (iii) People who don't get their
due may  resort to anti social
activities

a. iii , i , ii
b. ii , iii , i
c. i , ii , iii
d. ii , i , iii

Q8. Which of the following is not a business activity?

(a) Production of goods
(b) Work in a factory for wages
(c) Exchange of goods
(d) Transportation

Read the following text and answer question No.9-12 on the basis of the
same:
Landmark case of  ‘ Kelner vs Baxter ’ which is a case where “the principle of
promoter’s liability in a contract before the registration of a company”, was
explained. The facts of the case are that, the promoter of a company Azatac
Ltd. was approached by one Mr. Kelner to purchase his wine wherein the
promoter had agreed to purchase the same on behalf of the company,
before the company was formed. Later on the company was unable to pay
Mr. Kelner who sued the promoter. It was interpreted whether the
promoter was in a principal-agent relationship with the company and if the

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 liability can befall upon the company. The learned judge Mr. Justice Walsh
interpreted that the principal agent relationship was not in existence as the
principal of the agent cannot have existed without the incorporation, it was
further added that company cannot take the liability of the stated contract
through adoption as the company is not privy to the contract, also the
company was not even existent at the time of contract.

Q9. Identify the type of contract. 1

a. Policy contract
b. Incorporation contract
c. Partnership contract
d. Preliminary contract

Q10.When are these type of contracts as identified above signed? 1

a. Promotion stage
b. After Incorporation but before capital subscription
c. Capital Subscription stage
d. After commencement of Business

Q11. The type of contracts as identified above are 1

a. Binding on the company

b. Binding on the company, if ratified after incorporation
c. Binding on the Company, after incorporation
d. Not binding on the Company

Q12. Seeing an advertisement in the newspaper, Mr. Dawson finally decided

to break his Fixed Deposit from the bank and invest the amount in Magma
Finance Ltd. He filled up the prescribed form and deposited the money with
the company. The company in return issued a deposit receipt. How is such
deposit beneficial to both, Mr.Dawson, as an investor as well as to the
company? 1
a.Magma Finance Ltd. would get a higher interest rate from the public, cost
of deposits to Mr. Dawson would be less than the cost of borrowing from the
bank .

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 b. Mr. Dawson would get a higher interest rate than that offered by the
bank, the cost of deposits to Magma Finance Ltd. would be less than the cost
of borrowings from banks.

c.Mr. Dawson would get a lower interest rate than that offered by the
bank, the cost of deposits to the Magma Finance Ltd. would be more than
the cost of borrowing from banks.

d.Magma Finance Ltd. would get a lower interest rate from the public, cost
of deposit to Mr. Dawson would be more than the cost of borrowing from
banks.

Q13. A ________ includes a description of the goods, the total payable amount
and other details about the transaction.

a. Invoice
b. Performa Invoice
c. Letter of Information
d. Enquiry Performa

Q 14. Industrial policies of 1948 and 1956 formulated by the Indian

government have made the provision of coexistence. Some basic and heavy
industries are being run under the public sector. However, with the
liberalisation of Indian economy, the scope of private sector has further
enhanced.
The paragraph implies that: 1
a. Liberalization was introduced in India after 1991
b. India is a mixed economy.
c.Public sector cannot function without the private sector
d. Privatization simply gives impetus to crony capitalism.

Q 15. _________ bunches the transactions while executing them. 1

a.NEFT
b.EFT
c.RTGS
d.EDI

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Q16. Olx and Quikr are examples of which kind of e-Business? 1

a. C2C
b. B2C
c. C2B
d. B2E

Read the following text and answer question No.17-20 on the basis of the
same:
The Government of India constituted the International Airports Authority of
India (IAAI) in 1972 to manage the nation's international airports while the
National Airports Authority of India (NAAI) was constituted in 1986 to look
after domestic airports. The organizations were merged in April 1995 by an Act
of Parliament, namely, the Airports Authority of India Act, 1994 and was
named as Airports Authority of India (AAI) working under the Ministry of Civil
Aviation, Government of India. It was aimed at providing better services and
avoidance of bureaucratic systems and red tapism.

The net worth of 77 central public sector enterprises (CPSEs) had been
completely eroded by their accumulated losses, shows the latest
Comptroller and Auditor General report. It said there were 189 government
companies and corporations with accumulated losses of Rs 1,40,307.55
crore as on March 31, 2019. Net worth is the value of the assets a person
or corporation owns, minus the liabilities they owe. It is an important metric to
gauge a company's health, providing a useful snapshot of its current financial
position.

Q.17 What type of organization is the Airports Authority of India? 1

a. Government Company
b. Departmental Undertaking
c. Statutory Corporation
d. Joint Venture

Q.18 Which key feature of the Government Companies has been

highlighted in the second paragraph? 1

a. Government companies often run in losses

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 b. They obtain funds from government
c. They are exempted from the auditing rules & procedures.
d. They enjoy autonomy in operation

Q.19 Which type of organization carries the stigma of red tapism in its daily
operations? 1

a. Private Companies
b. Statutory Corporations
c. Government Companies
d. Departmental Undertakings

20. What does a high net worth indicate? 1

a.Financial health of the company

b.Public trust in the company
c.Greater assets owned by the company
d.Greater liquidity

Q. 21 Katherine wants to start a retail business of fashion items but changes in

taste and preferences of customers may result in loss in such type of business.
She is hesitating as she is aware of risks which are inherent in every business.
She approaches her friend Kristina who is the owner of a retail shop. Kristina
advises her to go ahead with her idea as she will get profit as return for
undertaking risk. She also told her that some risks in business can be insured
by taking insurance policy.
On the basis of the given information about Katherine:
a. What are the kinds of risks that a business is exposed to? 1
b. Identify the main features of business risk discussed in the above case. 2

Q22. Which document signifies the birth of a company and why? In case of
any flaw in it or deficiency in the formalities during registration, will the
contracts signed with the company be valid? 3

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 OR
Explain the role of Bankers , Brokers and Underwriters in the Capital
Subscription stage of formation of a company. 3

Q 23. A cargo ship was insured against perils of sea through a marine
insurance. While the consignment was being loaded on to the ship some rats
also creped along. During the voyage, the rats made holes in the ship.
Consequently, the sea water entered into the ship and the cargo was
damaged. A claim against loss was filed and was duly compensated by the
insurance company. 3

a. Which principle is applicable here?(1/2)

b. What does the principle state?(1/2)
c. Explain the principle applicable in the last line of the case study.(1)
d. Which type of insurance does the identified principle (c) not apply to?
Explain the insurance. (1)

Q24. How does MSMEs contribute to the socio-economic development in rural

India? 3
OR
What are the different ways of funding a start up?

Q.25 Indian Railways (IR) is a governmental entity under the Ministry of

Railways that operates India's national railway system. It is run by the
government as a public good and manages the fourth-largest railway network
in the world by size, with a route length of 68,155 km (42,350 mi) as of March
2019. 40,576 km (25,213 mi) or 64% of all the broad-gauge routes are
electrified with 25 kV 50 Hz AC electric traction as of August 2020. 4

a. Which type of public sector enterprise is the Indian Railways?(1)

b. Name and explain 3 characteristics of the enterprise identified in part(a)

Q26. Explain the difference between fire and marine insurance? 4

Or
Write the important features of a Recurring Deposit Account. 4

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Q27 . Ruchika a village girl comes to Delhi to visit her relatives. She goes with
her cousin to a large retail showroom having number of departments under
one roof. Each of the department is like a separate shop with centralized
purchasing, selling and accounting. She becomes surprised by the varieties of
goods which are sold here.
a) Identify the type of fixed shop retailer highlighted above.
b) Explain its any two features by quoting the lines from the above Para.
c) Explain any two advantage of such retailer. 4

Q 28. Explain any four ways in which Entrepreneurship Development enables

the entrepreneurs to initiate and sustain the process of economic
development. 4

OR

Explain the important functions of National Small Industries

Corporation( NSIC). 4

Q29. Johnson and Johnson’s Balancing Work and Family Program reflects their
Credo commitment to help employees manage work and family life. This effort
offers advantages to employees and to the company which is able to attract,
recruit and retain the most talented employees and offer them a host of
benefits. 4

1. Explain in detail the Social responsibility of business organisations

towards the interest group mentioned.(2)

2. Which are the other interest groups towards which businesses have
social obligations?(2)

Q30. Anaisha had invested Rs. 2 lakh in Tourbon & Larsen Ltd. She heard that
the company had to be wound up. Though it wasn’t good news, she expressed
satisfaction over her decision saying that she had been receiving priority in the
payment of dividend and would be given priority in the return of investment.
4

1. Identify the highlighted source of finance for the company.(1)

2. Explain its different types.(3)

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Q31. Differentiate between Equity shares and debentures on the basis of 6

1. Ownership status of funds

2. Return
3. Voting rights to investors
OR
What do you understand by ICD ? State its 4 features.

Q 32 . Avantika wanted to pitch in to reduce the financial crisis prevailing in her

house and thought of working as a cook. She started working in three different
households, one Punjabi, one Gujrati and one South Indian family. She soon
realised that all the three households had different cuisine. It was indeed a
challenge for her to learn the techniques of the cuisine. All families greatly
appreciated the time frame within which she had mastered the local cuisine.
After working for them for a year, she decided to open a small eating joint of
her own along with two of her friends by the name ‘Eat point’.
They decided to share profits and losses equally and that each of them will be
liable for acts performed by the other two. Soon the eatery became a hot spot
because of the fusion platter which was being offered.

On the basis of the given information answer the questions that follow:
a. Identify the kind of business organisation which was set up by Avantika
and her friends. 1
b. Explain Mutual Agency. Pick out the line from the case that gives the
closest reference to the same. Also mention one drawback of Mutual
Agency. 4
c. Suggest any two kinds of partnership styles that Avantika can opt for. 2

Q 33. Explain the six important features of Chain stores . 6

OR
Write 3 services of Wholesalers to retailers and 3 services of retailers to
wholesalers.

Q 34. ABC Ltd. is a leading manufacturer of medical appliances in India. His

company is famous for selling quality goods in a wide variety in the country.
His most selling medical appliances include sterile gloves, surgical face masks,

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surgical caps and other surgical disposables. He has recently procured an
export order for these medical appliances and has to obtain his IEC code
number. Since he has ready stock of goods to be exported he wishes to
complete all other formalities before applying for the reservation of shipping
space.
In context of the above case:
a) State the procedure to obtain IEC number.
b) What are the formalities that ABC Ltd. has to complete before applying for
the reservation of shipping space?
c) Explain the document that will be issued?

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