DPS – MODERN INDIAN SCHOOL, DOHA - QATAR

TERM-I EXAMINATION (2021-22)

CLASS: XI
Subject: BUSINESS STUDIES Date: 24.10.2021
Time allowed: 90 minutes Maximum Marks: 40

General Instructions:
1. The Question Paper contains 3 sections.
2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.
7. Please check that the question paper has 18 pages.

SECTION-A
1. The Hundi which is payable to the holder or bearer is
called _______

A) Firman Jog Hundi

B) Darshan Jog Hundi
C) Dhani Jog Hundi
D) Nam Jog Hundi

2. The Person whose risk is covered is called ______________.

A) Insured
B) Insurer
C) marketer
D) Agents
3. Jammu and Kashmir Bank is a ____ bank.

A) Foreign Bank

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 B) Public sector bank
C) Private sector bank
D) Rural bank

4. The branch of Commerce which removed hindrance of

place_____

A) Warehousing
B) Transportation
C) Insurance
D) Banking

5. Which of the following is not correct with respect to

preliminary contracts?

A) Preliminary contracts can be ratified if company

agrees to it after formation
B) Preliminary contract expenses can be claimed by the
promoters from the company.
C) Promoter is personally liable for preliminary
contracts.
D) Preliminary contracts are not legally binding on the
company.

6. Fayeda Ltd. charges very low price which just covers their
cost so that it can remain in competitive market. Fayeda
Ltd. is trying to achieve which organisational objective:

A) Growth
B) Profit
C) Survival
D) None of these

7. If business is to operate in a society which is full of diverse

and complicated problems, it may have
A) Little chance of success
B) Great chance of success

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 C) Little chance of failure
D) No relation with success or failure

8. The probability of unusual bad weather which causes

losses to business can be classified as

A) Speculative risk
B) Pure Risk
C) May be a and b both
D) Business loss

9. In recent years there has been mass shift in banking sector

from class banking to _____.

A) Rural banking
B) High Net worth Individuals
C) Mass Banking
D) Global banking

10. Which of the following is not a social responsibility of

business towards its investors?

A) To give appropriate salary

B) To ensure proper dividend
C) To ensure safety of capital
D) To ensure proper utilization of capital

11. A lady customer goes to boutique to get clothes modified

as per her liking. The shop owner has special skill set to
deliver her orders as per different customer liking. Which
element of Business services is highlighted here?
A) Intangibility C) Inseparability
B) Inconsistency D) Involvement

12. The main purpose of Industrial Policy Resolution was to

A) Accelerate rate of growth

B) Accelerate the rate of Industrialisation

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 C) Accelerate the rate of Privatisation
D) Both A & B

13. In the older times the document which was used to

facilitate transfer of money from one hand to another for
trading activities is called _______.

A) Hundi
B) Chitti
C) Both a and b
D) Neither a nor b

14. The A) nature of operations and B) the need for

professionalised management affects the choice of the form
of organisation. Is the statement true?

A) Both A & B are true

B) Statement in not true
C) Option A) is true
D) Option B) is true

15. Which of the following is a merit of Statutory Corporation?

A) It has a separate legal entity, apart from the

Government
B) They are able to control the market and curb
unhealthy market practices
C) They enjoy independence in their functioning and
high degree of operational flexibility
D) The revenue earned by the enterprise goes directly to
the treasury of its ministry

16. The word ‘Gozzby’ as the name of a partnership firm

requires permission from the ______.

A) Government
B) Partners

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 C) Registrar of Companies
D) Partners and Registrar of Companies

17. Partnership contract _____.

A) Should be registered
B) Can be written or oral
C) is mandatory to be registered
D) A and B both

18. A company in Maharashtra headed by Mr. Rao, Mr.

Sharma, Mr. Verma have filed its documents for
registration, what document will be issued by Registrar of
Companies.

A) Certificate of partnership
B) Certificate of Maharashtra
C) Certificate of birth
D) Certificate of registration

19. Which of the following statement is true about Articles of

Association and Memorandum of Association

A) Articles of Association can be altered with ordinary

resolution.
B) It is not compulsory for a public ltd. company to file
Articles of Association.
C) Every company has to file a Memorandum of
Association.
D) Acts beyond the Memorandum of Association are
invalid and cannot be ratified.

20. Amazon and E-bay have transformed the E-Commerce

business. E-Commerce business was launched by these
companies in the year ____.

A) 1991

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 B) 1994
C) 1995
D) 1999

21. State Bank of India is an example of ______.

A) Private company
B) Government Company
C) Statutory Corporations
D) Co-operative Society

22. Statutory corporations are not accountable to the public.

A) May be
B) True
C) False
D) Partially correct

23. This E-Commerce business model mainly focuses on

selling products or services online.

A) Indirect Marketing

B) Marketplace

C) Online Direct Marketing

D) Brick & Mortar

24. In case of Consumer’s Co-operative Society profits, if

any, are distributed on the basis of

A) Either their capital contributions to the society or

purchases made by individual members.
B) By the amount of sales contribution
C) By the amount of capital contribution made by the
members.
D) Capital is retained by the Co-operative and not

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 distributed.

SECTION-B
25. Environmental protection can best be done by the efforts of

A) Business people
B) Government
C) Consumers
D) All the people

26. A Premier manufacturer of electrochemical oxygen sensor

can be classified as ____

A) Assembling Industry
B) Processing Industry
C) Analytical Industry
D) Synthetic Industry

27. The employees do not have to come to workplace, instead

office goes to them and employees can work wherever
they are with speed, time and convenience through this
technology. Identify the technology

A) Secure Socket layer

B) Business to Business
C) Virtual Private Network
D) E – delivery

28. The funding of departmental undertaking comes from

____ and their revenues earned goes to the _____

A) Ministry of Finance, Government Treasury

B) Government Treasury, Government Treasury
C) General Public, Ministry of Finance
D) RBI, Ministry of Finance

29. Amrita Ceramics Limited has over 200 members and was
incorporated in 2002 with the main objects to manufacture

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 ceramic goods, glazed, unglazed floor and wall ties etc.
and to carry on trading in such products. After few years
of successful operation, it wants to diversify its business
related to ceramics mentioned earlier in sub clause of
object clause of Memorandum. What are the options
Amrita Ceramics has to carry out?

i) It cannot carry out unless Memorandum is changed

ii) It needs to pass special resolution
iii) It can go ahead with ordinary resolution or special
resolution
iv) It needs Government approval.

A) i
B) iii & iv
C) ii only
D) i & iv

30. Pawan from Surat has to transfer ₹ 25,000 to Hyderabad at

the earliest. He is confused between a bank draft and
bankers’ cheque. Remove his confusion by advising him to
go for

A) Bank draft
B) Bankers’ cheque
C) Either one of them
D) None of them

31. A factory owner insures his stock of goods. He fails to

make necessary safety arrangement to protect the factory
from fire. Later, heavy rain and thunder lightning follows.
The factory catches fire and could not be controlled
because there were no fire extinguishers in the factory.
Which underlying principle is identified here?

A) Principle of Proximity
B) Principle of Mitigation
C) Principle of Utmost Good Faith

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 D) Principle of Subrogation

32. Mr P is running a business of handicraft (eco-friendly) in a

village, he thought of opening a primary school for his
employee's children so that they can get basic education.
What do you think of Mr. P’s act?

A) Socially responsible towards employees

B) Socially responsible towards public
C) Socially responsible towards Government
D) Socially responsible towards customers

33. An early form of E-commerce was_______.

A) B2B
B) B2C
C) EDI
D) DSL

34. With the change in the government policy in 1991, people

can now attract equity capital from friends and relatives of
small scale entrepreneurs who were reluctant to invest
earlier. But no matter what type of contract it is a clear
agreement with respect to the terms, conditions and all
aspects concerning the partners is essential. Which type of
partnership helped firms raise money from friends &
relatives?

A) General Partnership
B) Limited Partnership
C) Particular Partnership
D) Partnership at will

35. The important exporting centre for wool and for importing
horse in ancient times was:

A) Patliputra
B) Peshawar

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 C) Taxila
D) Ujjain

36. Amay business organisation has adopted the practice of

refraining from misleading product promotion practices.
Mention the interest group for which this action is
relevant.

A) Customers
B) Public
C) Employees
D) Government

37. It is the Social Responsibility of every business to take

steps to check pollution and to protect the environment.
Any business which takes steps in this direction gets which
of the following benefits?

A) Reduction of Capital Investments

B) Increased customer satisfaction
C) Reduction in workforce
D) Savings in cost

38. The court held that a contract deed is _____ when a

guardian enters into a partnership on behalf of the minor
but again ______ should be imposed on the minor, even
the income of a minor from the firm should not be taken.

A) Not valid, liability

B) Valid, no liability
C) Not valid, no liability
D) Ultra, vires, no liability

39. Statement I: A group of persons, called promoters have

submitted an application to the Registrar of Companies,
New Delhi for getting a company incorporated as a public
company and they enter into certain contracts.
Statement II: A promotor cannot enter into contracts

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 before incorporation.
(A) Both statement I and II are true, and I is the correct
explanation of II
B) Both I and II are true, but II is not the correct
explanation of A
C) Statement I is true, statement II is false
D) Statement I is false, statement II is true

40. Assertion (A): E commerce companies require personal

data of the customers to serve their stake holders better.
Reasoning(R): In the process privacy may get
compromised.
(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, R is false
D) A is false, R is true

41. In case of ‘Hull Policy’, the amount insured is fixed at a

level _____ the current market value.

A) Equivalent
B) Below
C) Above
D) a and b both

42. Employees can use electronic catalogs, order forms, and

access inventory information for better interaction with the
customers. This is a form of ____

A) B2C
B) B2B
C) B2E
D) Intra B

43. Arrange the following as they come in the process of

Company formation

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 A) Preliminary Contracts
B) Qualification shares
C) Certificate of Incorporation
D) Provisional Contracts

a) A); B); D); C)

b) B); A); C); D)
c) C); A); B); D)
d) A); B); C); D)

44. Business responsibility is towards

A) Shareholders
B) workers
C) Government
D) All of these

45. Assertion (A): The company name must end with the word
“limited” because for the preparation of MOA it is a legal
requirement for limited liability companies.
Reasoning (R): The name clause requires to state the legal
and recognized name of the company.

(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, R is false
D) A is false, R is true

46. Which is the underlying Principle of Insurance in the

following statement:
‘Insurer is not liable for any uninsured causes or perils.’

A) Principle of Utmost Good faith

B) Principle of Indemnity
C) Principle of Subrogation

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 D) Principle of Proximate cause

47. Assertion (A): In Marine Insurance the insurers promise to

indemnify the insured “in the manner and to the extent
agreed.”

Reasoning(R): In marine insurance the amount of

the policy can be the market value of the ship or cargo.

(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, R is false
D) A is false, R is true

48. A prospectus is issued by

(A) A private company
(B) A public company seeking investment from public
(C) A public enterprise
(D) A public company

SECTION-C
Read the following text and answer question number 49-54
on the basis of the same.

Zozo is running a internet café in Mumbai. The café

insured against Fire from ABC Insurance Company for
₹ 50 lakhs. Heavy rains in the city caused massive flood
This left the store without any electricity and looting
happened which could not be recorded by CCTV camera A
spark in the electrical circuit started the fire. Zozo claimed
₹13 lakhs compensation for the damage to furniture and
other assets destroyed from fire and ₹5 lakhs damage due
to looting. She further claimed ₹20 lakhs for converting the
café into fully Air Conditioned and for additional space.
49. Insurance company after assessing the case accepted the
claim of_____

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 A) ₹ 13,00,000
B) ₹ 25,00,000
C) ₹ 38,00,000
D) ₹ 33,00,000

50. What is the fundamental principle of Insurance in this

case?

A) Principle of Mitigation
B) Principle of Utmost good faith
C) Principle of Proximity
D) Principle of Subrogation

51. Identify the principle of Insurance involved by Insurance

Company by accepting the claim amount.

A) Principle of Proximity
B) Principle of Indemnity
C) Principle of Mitigation
D) None of these

52. In case Zozo decided to surrender the policy, the surrender

value would have been:

A) Amount of Policy
B) Amount of Premium
C) Zero
D) Calculated as per months used

53. The type of insurance mentioned in the above case is that

of

A) Life Insurance
B) Burglary Insurance
C) General Insurance
D) Health Insurance

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54. In the above type of Insurance, Insurance claim was
accepted on the basis that:

A) The insured can claim the actual amount of loss from the
insurer.
B) Fire insurance has the element of protection and not the
element of investment.
C) Insurable interest on the subject matter must be present
both at the time of effecting policy as well as when the
claim falls due.
D) The loss due to the fire is indemnified subject to the
maximum limit of the policy amount.

55. Sharma brother inherited some ancestral property. They

decided to form a Hindu Undivided Family consisting of
four male members. Mr. Raghav Sharma was the eldest
brother, so he became Karta. The business under the
banner Sharma ji took loan of ₹ 20 lakhs from Bank of
Baroda, which was to be returned within 5 years. Due to
the economic scenario the business did not do well, and
they were unable to pay the loan. The brothers sold the
ancestral property for ₹ 10 lakhs and paid to the Bank. The
bank however filed a case against them for the balance
amount. Mr. Raghav Sharma pleaded that all members
carried out business and the loan was taken to facilitate
business. So, he alone should not be liable to repay. But the
court did not agree. What ruling should have been
announced

A) Karta has unlimited liability and others have liability

to the extent of their capital contribution
B) Karta and others are all equally responsible
C) Karta can pay from his personal property and later
recover from other members
D) Karta alone is responsible.

56. Clara visited a new restaurant 'INDI’ with her parents.

They all liked the food served in the restaurant. After a

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 week Clara took her friends to 'INDI’ and placed an order
for the same dishes that she had liked during his previous
visit. But to her surprise, she found that the taste of the
food was not as good as it was during his previous visit.
As a result, she felt very disappointed. In context of the
above case: Identify the feature of services being discussed
above

A) Business Service
B) Social Service
C) Personal Service
D) A and D

57. A syndicate of three persons namely, Akanksha, Ann and

Devesh was formed to purchase the Tech Solutions
Company and to promote and register a company to which
the Tech Solution Company property was to be resold. At
that time the Tech Solutions Company was in a bad shape.
The promoters wanted to claim the expenses incurred by
them. In context of the above case which one is true:

A) Promoter can claim pre incorporation expenses and

salary for the efforts.
B) Promoters cannot claim commission, but not pre-
incorporation expenses
C) Promoters can claim commission, pre incorporation
expenses, share in the company.
D) Promoters can claim commission, but not shares in
the company or pre incorporation expenses.

58. Kayli is a partner in a partnership firm but outsiders have

no knowledge about her status in the business. Sayli is not
a partner in the same firm but allowing the firm to project
him as a business partner. What type of partners are Kayli
and Sayli?

A) Secret partner and partner by estoppel

B) Nominal Partner and partner by holding out

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 C) Secret Partner and partner by holding out
D) Sleeping partner and partner by estoppel

59. Sahodya chemicals, a public sector enterprise, is

continuously running into losses. Due to its inability to
revive the unit and turn it into a profit-making entity,
government plans to disinvest it. For this purpose,
government decided to privatise it. The primary objectives
of privatising for the public sector enterprises in this case
is:

A) Releasing the large amount of public resources

locked up in strategic Public Sector Enterprise
B) Reducing the import substitution and interest
burden
C) Reducing the concentration of economic power.
D) Transferring the commercial risk to the private
sector.

60. Monica is a busy homemaker. She recently shifted to

Mumbai. Members in her family are busy in their office
and have long working hours. Monica started small
tailoring business and has few part time employees. She
runs the house as well as her small business. She makes
payment of electricity, water bill online. She ordered
stitching machine to be used for her work. But the sewing
machine had some defect and so she filed an online
complaint with the customer care. The head of the
customer care passed on the complaint mail to the head of
the marketing division and copied the mail to production
head also. On inquiry it was found that the dealer of
stitching machine for the producers in Pune made the
default on delivery while taking order online, while taking
online order from Monica. Identify the limitation of E-
business identified in the above case?

A) Lack of personal touch

B) Time consuming

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C) Risk arising due to anonymity and no traceability of
the party
D) Fraudulent trading

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