DOON PUBLIC SCHOOL, PASCHIM VIHAR, NEW DELHI

SAMPLE PAPER [2023-24] (ROUND 2)

Class: XI
Subject: Business Studies
Duration: 1.5 hours Date: ___/ /2024 Max Marks : 40
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General Instructions:
i. This paper contains 10 questions of 1 mark each, 2 questions of 3 marks each, 3 questions of 4 marks
each and 2 questions of 6 marks each.
ii. 1 mark questions are Objective Type Questions and are to be answered in one word or one sentence.
iii. 3 marks questions are Short Answer Type Questions and are to be answered in 50-75 words.
iv. 4 marks questions are Short Answer Type Questions and are to be answered in 150 words.
v. 6 marks questions are Long Answer Type Questions and are to be answered in 200 words.
vi. Attempt all parts of the questions together.

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Q1. Kavya established a manufacturing unit to produce all types of electrical wires. She
invested 35 crores in Plant and Machinery. Classify the manufacturing enterprise as per Micro,
Small and Medium Enterprises Development Act, 2006. 1

Q.2 Read the following statements carefully and choose the correct alternative from the
following:
Statement 1: GST is based on principle of destination based consumption tax.
Statement 2: The territorial spread of GST is the whole country.
Alternatives:
a) Statement I is true but statement II is false.
b) Statement II is true but statement I is false.
c) Both the statements are true.
d) Both the statements are false. 1

Q.3 Lower level of risk involved in inter corporate deposit as it is a secured deposit by one
company with another company. True/False. 1

Q.4 Havells India Pvt. Ltd. a well-known electrical appliances company owns a good image in
the industry. It has more of equity share capital than debenture as long source of funds. There
has been a great demand of shares in the market as the company has been paying higher
returns every year. It was decided in the internal meeting of the directors
to announce bonus shares to the existing equity shareholders.

What does more of equity share capital than debt show in the capital structure of the company?
a) Financial Soundness and control
b) Financial Instability
c) Dilution of control and earnings of existing equity shareholders
d) None of the above 1

Q.5 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Small business is defined on the basis of investment in plant and machinery or
equipments in India
Reason (R): In India, there is scarcity of capital and abundance of labour.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R ) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of
Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True. 1

Q.6

Identify the type of retail trade from the above image. 1

a) Market trader
b) Hawker and peddler
c) Street Trader
d) Cheap jacks

Q.7 Which one of the following is a feature of owners’ funds?

(a) Needs to be refunded after a long usage.
(b) A mandatory timely return is to be paid.
(c) Control stays in the hands of owners.
(d) Profits are reinvested in the business. 1

Q.8 Read the statement carefully and choose the correct alternative: 1
Statement I- International business is broader term than international trade.
Statement II- There is a lot of government intervention in case of international business.
a) Statement I is true but statement II is false.
b) Statement II is true but statement I is false.
c) Both the statements are true.
d) Both the statements are false. 1

Q.9. A patent grants exclusive rights to the inventor for a period of ___ years.
a) 10
b) 20
c) 15
d) 5 1

Q.10 The major limitation of preference shares as source of business finance are:
i. Preference shares are not suitable for those investors who are willing to take risk and
our interested in higher returns.
ii. Preference shares dilutes the claim of equity shareholders over assets of the company.
 iii. The rate of dividend on preference shares is lower than the rate of interest on
debentures.
Which of the above statements about limitation of preference shares are correct?
a. i, ii, iii
b. ii, iii
c. I , ii
d. I, iii
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Q.11 Identify and explain the documents highlighted in the following statements:
a) Agreement signed with the shipping company to enable to put goods on the ship.
b) Document issued by captain of the ship after loading the goods on the ship.
c) Assured payment on the strength of a document issued by importer’s bank.
3

Q.12. Differentiate between department store and chain store on the following basis:
a) Services offered
b) Pricing
c) Credit facility 3

Q.13 After Mahindra and Mahindra Finance Ltd., successful issue of non-convertible
debentures. Many other companies have got approval to issue debentures for raising long term
debt capital. Many financial services companies have been opting non convertible debentures
for long term debt capital because for them raising money is akin to sourcing raw material and
a cheaper source of finance makes a lot of difference to their balance sheet.
On the basis of above case, answer the following questions:
a) Identity and explain the source of finance discussed in the above case.
b) Explain the reasons for popularity of this source of finance. 4

Q.14 Mr Brijesh wants to import raw material from R Joseph in America. He sends a trade
inquiry to him for collecting information regarding the export prices and the terms of export.
After receiving the trade inquiry, Mr Joseph prepares a quotation called Performa Invoice and
send it to Mr Brijesh. Mr Brijesh now received an intimation about the arrival of goods in India.
State the various formalities that Mr Brijesh have to complete before taking the delivery.
4

Q.15 Aditya firm buys Basmati rice from different manufacturers in huge quantities and sells
these to Rajbir Sons, Gupta Bros, etc. in small quantities under their own brand name.

Based on the given source, answer the following questions:

1. In your opinion what services Aditya firm provides to Rajbir Sons, Gupta Bros, and
others.
2. What service is provided by Aditya firm to manufacturer?

How do they serve as an important link between manufacturers and Rajbir Sons, Gupta Bros,
and others?
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Q.16 Mr. Tushar Singhal has been running a restaurant for the last two years. The excellent
quality of food has made the restaurant popular in no time. Motivated by the success of his
business, Mr. Singhal is now contemplating the idea of opening a chain of similar restaurants
at different places. However, the money available with him from his personal sources is just
sufficient to meet the expansion requirements of his business. He need funds to meet the
operating expenses of the new chain.
Mr. Tushar Singhal requested the suppliers of raw food material to extend credit for three
months. Supplier agreed to do so after making an enquiry regarding the reputation of Mr.
Tushar Singhal's restaurant.

On the basis of aforesaid information about Tushar Singhal, answer the following questions:

(a) Identity and explain the source of finance used by company to meet its operating expenses.
(b) State any four features of raising funds through the source specified in part (a).
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Q.17 On February 24, 2022, the Delhi High Court Intellectual Property Rights Division Rules,
2022 and the High Court of Delhi Rules Governing Patent Suits, 2022 were published in the
Official Gazette. All IPR lawsuits, cases, procedures, or disputes before the IPD of the Delhi
High Court are subject to the Rules. According to the Rules, “IPR subject matters or cases or
processes or disputes” refer to all initial, appellate, and other IPR-related proceedings filed
before the IPD. It will also cover IPR lawsuits, revocation and cancellation requests, new legal
actions, appeals, and petitions from various IPO’s.
What are IPR? Why is IPR important for entrepreneurs? Explain any four types of IPRs with
examples.
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