Class XI

Business Studies
(Term – I)
Total Marks: 40

Section A

1. Business risk is not likely to arise due to

(a) Changes in government policy
(b) Good management
(c) Employee dishonesty
(d) Power failure

2. The structure in which there is separation of ownership and management as per law is called
(a) Company
(b) All business organizations
(c) Partnership
(d) Sole proprietorship

3. Social responsibility is
(a) Same as legal responsibility
(b) Broader than legal responsibility
(c) Narrower than legal responsibility
(d) None of them

4. It is not an application of e-business

(a) Contract R&D
(b) Online trading
(c) Online procurement
(d) Online bidding

5. Co-operatives play an important role in:

(a) aerospace.
(b) agriculture.
(c) manufacturing.
(d) all of the above.

6. The karta in Joint Hindu family business has

(a) No liability for debts
(b) Unlimited liability
(c) Joint liability
(d) Limited liability

7. The most effective form of business organization for raising capital is the:
(a) joint venture.
(b) partnership.
(c) corporation.
(d) proprietorship.

8. A government company is any company in which the paid up capital held by the government is not less than :
(a) 49 per cent
(b) 51 per cent
(c) 50 per cent
(d) 25 per cent
9. Which of the following does not characterize business activity?
(a) Production of goods & services
(b) Presence of risk
(c) Sale or exchange of goods and services
(d) Salary and wages

10. Disinvestment of PSE’s implies :

(a) Sale of equity shares to private sector/public sector
(b) Closing down operations
(c) Investing in new areas
(d) Buying shares PSE’s.

11. Corporate social responsibility that extends beyond legal mandates can help meet societal expectations in the absence of
(a) Statutory devices
(b) Social tool
(c) Cost tool and Techniques
(d) Science tool

12. Which one of the following may not be a factor behind starting a business?
(a) Routine workload
(b) size of the firm
(c) finance
(d) location of the business

13. Provision of residential accommodation to the members at reasonable rates is the objective of
(a) Consumers cooperative
(b) Credit cooperative
(c) Housing cooperative
(d) Producers cooperative

14. A ___________ is a business with two or more owners:

(a) corporation.
(b) conglomerate.
(c) partnership.
(d) public corporation.

15. Which of the following cannot be classified as an auxiliary to trade?

(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport

16. Outsourcing
(a) Includes off shoring
(b) Restricts only to the contracting out of Information Technology Enabled Services (ITES)
(c) Restricts only to the contracting out of non-core business processes
(d) Includes contracting out of manufacturing and R&D as well as service processes, both core and non-core but restricts
only to domestic territory

17. Under what method payment is made at the time of physical delivery of goods
(a) Cash on delivery
(b) Debit card payment
(c) Credit card payment
(d) Prepaid amount

18. Which of the following is capable of doing maximum good to society?

(a) Business success
(b) Laws and regulations
(c) Ethics
 (d) Professional management

19. Carbon monoxide emitted by automobiles directly contributes to

(a) Water pollution
(b) Noise pollution
(c) Land pollution
(d) Air pollution

20. In case of ___________ Registration is compulsory

(a) Sole Proprietorship
(b) Partnership
(c) None of these
(d) Company

21. The maximum number of partners allowed in the banking business are
(a) Two
(b) Twenty
(c) No limit
(d) Ten

22. DTH services are provided by

(i) Cellular companies
(ii) Postal companies
(iii) Transport companies
(iv) Banks

23. Which of the following is an allied postal service-

(i) Greeting post
(ii) Media post
(iii) Speed post
(iv) Passport Application

24. The validity period of a demand draft is

(i) One month
(ii) Two Months
(iii) Three months
(iv) Six Months

Section B (Attempt any 15 questions)

25. The industries which provide support services to other industries are known as
(a) Primary industries
(b) Secondary industries
(c) Commercial industries
(d) Tertiary industries

26. The occupation in which people work for others and get remunerated in return is known as
(a) Business
(b) Profession
(c) Employment
(d) None of these

27. Time utility is created by

(a) Transportation
(b) Banking
(c) Warehousing
(d) Communication
28. Which of the following is not applicable in life insurance contract?
(a) Conditional contract
(b) Unilateral contract
(c) Indemnity contract
(d) None of the above

29. Indian railway is which form of organization :

(a) Public corporation
(b) Department organization
(c) Government company
(d) None of these.

30. Which of the following is a contract of Indemnity

(a) Marine Insurance
(b)Fire Insurance
(c) Life Insurance
(d) all the above

31. A_____________partner is an owner who has unlimited liability and is active in managing the firm:
(a) senior partner.
(b) general partner.
(c) silent partner.
(d) limited partner.

32. Punjab National Bank is related to which sector :

(a) Mixed
(b) Private
(c) Public
(d) None of these.

33. According to the concept of moral intensity, a worker is most likely to behave ethically and legally when
(a) a manager observes his or her behavior closely
(b) the worker has intense morals
(c) the consequences of the act are minor
(d) the consequences of the act are substantial

34. Which of the following is probably the most important reason for incorporating?
(a)limited liability of shareholders.
(b) more money for investment.
(c) increased flexibility.
(d)shared management.

35. A partner whose association with the firm is unknown to the general public is called
(a) Active partner
(b) Sleeping partner
(c) Nominal partner
(d) Secret partner

36. India is the preferred destination for BPO because of ____________

(a) Tax Free Zone for BPOs
(b) Cheap People
(c) Cheap Manpower
(d) Poor conditions

37. A__________ provides for the greatest degree of continuity:

(a)general partnership.
(b) joint venture.
(c) corporation.
(d) sole proprietorship.
38. E-commerce does not include:
(a) A business’s interactions with its suppliers
(b) A business’s interactions with its customers
(c) Interactions among the various departments within the business
(d) Interactions among the geographically dispersed units of the business.

39. Which of the following is the subject matter of Marine Insurance?

(i) All the above
(ii) Freight
(iii) Hull
(iv) Cargo

40. This category of cheque is to be deposited only in the payees account.

(i) Crossed Cheque
(ii) Bearer Cheque
(iii) Both Crossed Cheque and Bearer Cheque
(iv) None of the above
Section C (Attempt any 11 questions)

41. Which of the following statements about ethical standards are TRUE?
(a) The upper limits of ethical standards are set by individual standards
(b) The laws of economically developed countries generally define the lowest common denominator of acceptable behaviour
(c) The actual degree of enforcement of the law in an underdeveloped country would determine the lower limit of permissible
behaviour
(d) All of the above

42. Which one of the following is not principle business ethics?

(a) Principle of universality
(b) Principle of humanity
(c) Principle of autonomy
(d) Principle of dissatisfaction

43. The life of sole proprietorship business is ___________

(a) Unstable
(b) Stable
(c) Very short life
(d) Long life

44. In a cooperative society the principle followed is

(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes

45. Which of the following is a characteristic of a co-operative?

(a) profits are not subject to income tax.
(b) one vote per share.
(c) dividends are paid on a per share basis.
(d) all of the above.

46. Commerce includes activities relating to trade and _________________ to trade.

(a) Supporting
(b) subsidiaries
(c) auxiliaries
(d) none of these

47. Carbon monoxide emitted by automobiles directly contributes to

(a) Water pollution
(b) Noise pollution
(c) Land pollution
(d) Air pollution
48. Which statement is true?
(a) Human values system plays a vital role in total quality management
(b) Values give the real meaning to total quality management effort
(c) Total quality management is a corporate management strategy
(d) All of the above

49. The benefits of public warehousing includes_______.

(a) Control
(b) Flexibility
(c) Dealer relationship
(d) None of the above

50. It is not a type of general insurance

(a) Marine Insurance
(b) Fidelity Insurance
(c) Fire Insurance
(d) Life Insurance

51. Both buyers and sellers are customers under_______ type of e-business transaction
(a) C2C Commerce
(b) B2C Commerce
(c) C2B Commerce
(c) B2B Commerce

52. The payment mechanism typical to e-business

(a) Credit and Debit Cards
(b) Cash on Delivery (CoD)
(c) Cheques
(d) e-Cash