FIRST TERM EXAMINATION 2023-24 CLASS — XI SUBJECT : BUSINESS STUDIES TIME : 3.00 HRS ip ii) iv) vy) General Instructions The question paper contains 34 questions. Answers to questions carrying 3 marks may be from 50-75 words. Answers to questions carrying 4 marks may be about 150 words. Answers to questions carrying 6 marks may be about 200 words. Attempt all parts of the questions together. Following are the characteristics of business risks. One of them is not correct. Identify it. 1) a) Loss is the reward for risk bearing b) Business risk arises due to uncertainties ¢) Risk is essential component of every business d) Degree of risk depends mainly upon the nature and size of business. Transfer of interest exists in case of (a) a) Profession b) Employment —_c) Business d) None of these Name the two broad categories of business activities. a a) Trade and commerce b) Trade and industry c) Industry and commerce d) None of these | Incaseof____ registration is compulsory. ay a) Sole proprietorship b) Partnership c) Company d) None of these Which of the following is not a characteristic of a cooperative society ? a) a) Profits are not subject to Income tax b) One vote per share cc) dividends are paid on a per share basis d) All ofthe above Which partner is an owner who has unlimited liability and is active in managing the firm. (a) a) Seniorpartner b) generalpartner c) silentpartner _—_d)_limited partner10. 1. Business Studies X! (2) A proposed name of company is considered undesirable if : (1) a) Itis identical with the name of any other company. b) Itresembles closely with the name of the existing company. ¢) Itis an emblem of government etc. 4) Incase of any above Application for approval of name of company is to be made to (1) a) SEBI b) Registrar of India c) Government of India d) Government of state In the absence of Articles of Association, which table is adopted ? (1) a) TableA b) Tablec ©) Table F d) Table E Which public sector enterprise is suitable when National security is concern? (1) a) Statutory Corporation b) Departmental Undertaking ©) Private Company d) None of these Which of the following is set up under special Act of Parliament ? (1) a) Departmental Undertaking b) Statutory Corporation ©) Public Company d) None of these Reserve Bank of India is an example of a a) Departmental Undertaking b) Statutory Corporation ©) Sole Proprietorship d) Cooperative Society Change in fashion or taste of customer is which type of business risk ? () a) Speculative risk b) Pure Risk c) Both of these 4) None of these Engineering and architectural skills are an important part in which type of industry.(1 a) Secondary Industry b) Primary Industry ¢) Construction Industry d) Analytical Industry15. 16. sh 18, a) b) c) ) a) b) °) 1) Business Studies X! (3) Qualification shares are subscribed by of a company. (1) a) Auditors b) Directors c) Bankers d) Employees Read the following and choose one of the correct alternatives : Assertion (A) : The managing committee elected by members of the cooperative society is generally not professionally equipped to handle the management functions effectively. Reason (R) : Cooperative Society is unable to employ experts because of their inability to pay them high salaries. Both Assertion (A) and Reason (R) are True and Reason (R)is the correct Explanation of Assertion (A) Both Assertion (A) and Reason (R) are True and Reason {R) is not the correct Explanation of Assertion (A). Assertion (A) is True but (R) is False. Assertion (A) is False but (R) is True, (1) Read the following statement carefully and choose the correct alternative from the following : Statement 1: A sole proprietorship has no ‘Separate legal entity. Statement 2 : Itis very difficult to start or close down sole Proprietorship, Both the statements are true. Both the statements are false. Statement 1 is true and statement 2 is false. Statement 2 is true and statement 1 is false. (1) is the form of business organisation in which the members are jointly and individually liable for Payment of firms debts. (1) a) Sole proprietorship b) Partnership ¢) Company d) HUF20. 21. 22. 23. 24. 25. 26. a) b) a) b) Business Studies X! (4) Find out the liability of Anita ina company who is a shareholder, holding 3000 shares of 10 each. She has already paid 6 per share. 1) a) 10,000 b) 1,20,000 c) 18,000 d) 12,000 The society aims to eliminate middleman and improve competitive position of its members by securing a favourable market for the product. (1) a) Consumer's Cooperative Societies _b) Producer's Cooperative Societies ¢) Marketing Cooperative Societies d) Farmer's Cooperative Societies Nancy made some beautiful paper flowers and sold them to her neighbour for % 600. Her Aunt Mrs. Reema prepares chocolates for supply to a local baker. Who is engaged in a business activity ? Explain two features of a business activity. (3) Mrs. Indu started a voluntary association of 10 people, who are also consumers. She collected the capital by selling shares to members.and opened a retail shop so that they can eliminate middlemen and get the goods at low price. State the type of organisation mentioned in above case. Explain any two merits of this organisation. (3) Explain Memorandum of Association in detail. (3) Tushar runs a well known fashion store in Mumbai. He procures garments from different fashion designers and sells them to dealers all over the country. He also owns a godown to hold the surplus stock. Due to sudden increase in demand and to maintain stock for peak period, Tushar took a loan of x 10,00,000 from Kotak Bank. He has also taken a tisk cover worth z 2 crores for his business. Explain the ‘Auxiliaries of Trade’ being used by Tushar, @) “The possibility of inadequate profits or even losses due to uncertainties or unexpected events in a business”. The statement relates to which aspect. Explain its nature. (4) ‘Ankit, Kishore and shivam are partners in a partnership firm manufacturing water coolers. Recently, Shivam entered into a contract with Mayank for purchase of raw material worth ¢ 10,00,000 without the knowledge of Ankit and Kishore. Now, Mayank is asking for the payment and Ankit and Kishore are of the view that only Shivam is liable to make the payment and they cannot be held liable.29. 30. 32. a) b) ¢) 33. Business Studies XI (5) ‘Are they correct in refusing the payment ? State the related feature of partnership form of business organisation. Explain two more features of a partnership firm other than identified above. (4) Explain the privileges enjoyed by a private company over public company. (4) “Before investing the money in any business idea various factors like expected demand extent of competition, cost etc. are estimated in order to investigate all aspect of intended business” Identify the aspect mentioned in this statement and explain it in detail. (4) After the registrar approves the name, the promoter can proceed for incorporation 4 following some steps. Explain those steps. (4) In this competitive world, Management of a business set ‘Multiple objectives’ for long term survival and growth. Explain these multiple objectives. (4) Differentiate between business, profession and employment... (6) Mother Dairy was commissioned in the year 1974 as a wholly owned subsidiary of the National Dairy Development Board (NDDB). The company originally focused on Delhi and other parts of the National Capital Region (NCR). It later expanded to other regions in India. Today, Mother Dairy manufactures markets and sells milk and milk products including cultured products, ice creams, paneer and ghee under the Mother Dairy brand. The Company also has a diversified portfolio with products in edible oils, fruits and vegetables, frozen vegetables, pulses, processed food like fruit juices, jams, etc. to meet the daily requirements of every household. In the survey, the brand also witnessed a significant move in its Trust Index from 70% to 83% in 2015. In context of the above case : Define the term ‘company’. In the light of the above paragraph briefly outline any three merits of a company form of organisation which have contributed effectively towards the growth of Mother Diary over the years. Explain any 2 demerits of a company. 6) “Capital Subscription is the most crucial stage for a Public Company”. Explain the stage in detail. ©)a) b) °) Business Studies XI (6) Indian Railways is the fourth largest railway network in the world. itis owned and-operated by the Government of India through the Ministry of Railways. It Is responsible for rail transport in India. Indian Railways is the world's eighth biggest employer and had 1,331 million employees at the end of 2015-16. Discounted tickets are available for senior citizens (above sixty years) and some other categories of passengers including the specially abled students, sports persons, persons affected by serious diseases, or persons appearing for competitive examinations. In context of the above case : Indian Railways is classified as which type of public sector enterprise and why 7 In what category are the employees of Indian Railways placed 7 Explain any 2 merits and 2 demerits of Indian Railways as a public sector enterprise. (8)