NAVODAYA VIDYALAYA SAMITI

Business Studies (Code No. 054)

Class XI (2024-25)
Term – 01 Examination
Marking Scheme – I
Marks: 80 Duration: 03 hrs.
Q.
No
01 (b) Insurance 01 Mark
02 (a) Dhani Jog Muddati Hundi 01 Mark
03 (b) 51% 01 Mark
04 (c) Shareholders 01 Mark
05 (d) In case any of the above 01 Mark
06 (a) Promotion, incorporation, commencement of business, capital subscription 01 Mark
07 (c) lack of business continuity 01 Mark
08 (c) Housing co-operative 01 Mark
09 (d) share 01 Mark
10 (b) Unlimited Liability 01 Mark
11 (b) Statutory Corporations 01 Mark
12 (b) Departmental undertaking 01 Mark
13 (b) 3 months 01 Mark
14 (a) indemnity contract 01 Mark
15 (a) Overdraft facility 01 Mark
16 (c) Recurring Deposit Account 01 Mark
17 (d) All of the above 01 Mark
18 (d) Unified Payment Interface 01 Mark
19 a) Both A and R are true and R is the correct explanation of A. 01 Mark
20 (a) e-business 01 Mark
1. An economic activity
Each point
2. Production or procurement of goods and services
carries 01
3. Sale or exchange of goods and services
mark, any
4. Dealing in goods and services on a regular basis
three
5. Profit earning
points
6. Uncertainty of return
only
21 7. Element of risk
Business risks means the possibility of inadequate profits or even losses due to Each point
uncertainties or unexpected events. carries 01
1. Natural causes mark, any
2. Human causes three
3. Economic causes points
4. Other causes only
i. Number of members: In sole proprietorship Only owner is the member
whereas in partnership Minimum-2 Maximum : 50 members can be there. Each point
ii. Capital contribution: In sole proprietorship there is limited finance whereas in carries 01
22 partnership capital contribution is limited but more than that can be raised in case mark
of sole proprietorship.
iii. Secrecy: In sole proprietorship there is perfect secrecy, whereas in
partnership, secrets are limited to partners.
 Dormant Partner: Partners who do not take part in the day to day activities of
the business are called Sleeping or Dormant
Partners. A Dormant Partner contributes capital to the firm, shares its profits and
losses, and has unlimited liability.
Each type
ii. Active Partner: A partner who contributes capital and also actively participates
of partner
in the management and affairs of the business is called an active partner. He
carries 01
shares the profits and losses of the business and is liable to an unlimited extent to
mark
the creditors of the firm.
iii. Nominal Partner: A partner who allows the partnership firm to use his/her
name but does not contribute any capital or take part in the management and
affairs of the business. He does not share the profits and losses of the firm but he
is liable to the creditors for the repayment of the firm's debts.
1. B2B Commerce: Business to Business—Both the parties are business firms,
e.g. Manufacturer of an automobile requires assembly of a large number of
components which are being manufactured by different firms; Maruti Udyog, Bajaj
Auto etc. use B2B commerce.
2. B2C Commerce: Business to Customer—Transaction taking place between
business and individual customers. It facilitates promotion of products on line. e.g.
music or film. Companies sell products and services on line to customer e.g. Each point
23 [Link] sell Amul products online. of scope
3. Intra – B. Commerce: Parties involved are from within a given business firm. carries 01
It makes it possible for the marketing department to interact constantly with the mark, any
production department to get information bout customer requirement. three
4. C2C Commerce: Consumer to consumer—Business originates from the points
consumer and the ultimate destination is also consumer. Its area of application only
is the formation of consumer forum, e.g. selling used books over the internet.
1. Ease of formation and lower investment requirement Each point
2. Convenience carries 01
24 3. Speed. mark, any
4. Global reach 3 points
5. Movement towards to a paperless society only

Basis Business Profession

Qualification No minimum qualification is Qualifications, expertise and training in
necessary specific field as prescribed by the
professional body is a must
Mode of Entrepreneur’s decision and Membership of a professional body and
establishmen other legal certificate of practice
t formalities, if necessary Each
25 difference
Return Profit earned Professional fee carries 01
Risk Profits are uncertain and Fee is generally regular and certain; mark
irregular; risk is some risk
present

Code of No code of conduct is Professional code of conduct is to be

conduct prescribed followed
 i. Auxiliaries to Trade - It implies activities required to facilitate the purchase and
sale of goods i.e. are meant for assisting trade.
ii. The different auxiliaries to trade that are being used by Harshit in his business
are:
a. Transport as he procures different kinds of products from all over the country
through railways, roadways, and airways.
1 Mark for
b. Warehousing as he owns a godown to hold the stocks.
each
c. Insurance as he has taken an insurance policy worth Rs. 10 crores for his
difference
business.
d. Banking and Finance as he has taken a loan of Rs. 2,00,000 from ICICI Bank
in order to meet short term financial needs
of his business.
e. Advertising as he has placed information about his store on the hoardings,
billboards, etc. in order to popularize them.
1. The Name clause: This clause contains the name of the company with which the
company will be known, which has already been approved by the Registrar of
Companies.
2. Registered office clause: This clause contains the name of the state, in which
the registered office of the company is proposed to be situated. The exact address
of the registered office is not required at this stage but the same must be notified
to the ROC within 30 days of the incorporation of the company. Any 4
3. Objects clause: This is the most important clause of the memorandum. It clause
defines the purpose for which the company is formed. A company is not legally only. Each
entitled to undertake an activity, which is beyond the objects stated in this clause clause
4. Liability clause: This clause limits the liability of the members to the amount carry 01
unpaid on the shares owned by them. mark
5. Capital clause: This clause specifies the maximum capital which the company
will be authorised to raise through the issue of shares, called authorised share
26
capital. A company cannot issue share capital in excess of the amount mentioned
in this clause. The Memorandum of Association must be signed by at least 7
persons in case of a public company and by 2 persons in case of a
private company.

Basis Public company Public company

Members Minium – 7 Minium – 2 Any four
Maximum - Maximum - 50 difference
unlimited s only.
No of directors 03 02 Each
Min. capital Rs. 5 lakh Rs. 1 lakh
carry 01
Index numbers Compulsory Not compulsory
mark
Transfer of shares No restriction Restriction on transfer
Invitation to public Can invite the public Cannot invite the public

1. Limited liability Each

2. Transfer of interest correct
3. Perpetual succession Answer
27
4. Scope for expansion carry 01
5. Professional management mark, any
4 only
1. Finance Each
2. Accounting and audit correct
3. Staffing system Answer
28
4. Management and control carry 01
5. Accountability mark, any
4 only
 a. Multi option deposit scheme (MODS). Each point
29 B. Sole Proprietorship form of Business Organization carries 2
marks
1. Health insurance
2. Burglary insurance Any four
3. Motor vehicle insurance types of
4. Cattle insurance insurance
30
5. Crop insurance only. Each
6. Sports insurance carry 01
7. Amartya sen siksha yojana mark
8. Rajeshwari Mahila Kalyan Bima Yojana
1. Selection of line of business
2. Size of the firm
Any six
3. Choice of form of ownership
points
4. Location of business enterprise
only. Each
5. Financing of proposition
31 carry 01
6. Physical facilities
mark
7. Plant layout
8. Competent and committed work force
9. Tax planning
10. Launching the enterprise.
(1) Hindu Undivided Family Business
(2) Karta Each
(3) Limited resources answer
(4) Balanced decision making carries 01
(5) Unlimited liability mark
(6) company
32
(1) Active partner
(2) Nominal partner Each
(3) Dormant Partner answer
(4) Secret Partner carries 01
(5) More funds mark
(6) ) Creditor
1. Huge capital resources
2. Foreign collaboration
Each
3. Advanced technology
Correct
33 4. Product innovation
answer
5. Marketing strategies
carry 01
6. Expansion of market territory
mark
7. Centralized control.
(1) 1 Lakh
(2) Nil Each
(3) Mitigation correct
(4) Nil carry 01
(5) Utmost Good Faith mark
(6) Subrogation
Utmost good faith: A contract of insurance is a contract of uberrimae fidei i.e., a
34
contract found on utmost good faith. Both the insurer and the insured display good
faith towards each other in regard to the contract. Each
Insurable interest: The insured must have an insurable interest in the subject principle
matter of insurance. Insurable interest means some pecuniary interest in the carries 01
subject matter of the insurance contract. mark
Indemnity: According to it, the insurer undertakes to put the insured, in the
event of loss, in the same position that he occupied immediately before the
happening of the event insured against.
Proximate cause: When the loss is the result of two or more causes, the
proximate cause means the direct, the most dominant and most effective cause of
which the loss is a natural consequence.
Subrogation: It refers to the right of the insurer to stand in the place of the
insured, after settlement of a claim, as far as the right of the insured in respect of
recovery from an alternative source is involved.
Contribution: As per this principle it is the right of an insurer who has paid claim
under an insurance, to call upon other liable insurers to contribute for the loss
payment.
Mitigation: This principles states that it is the duty of the insured to take
reasonable steps to minimise the loss or damage to the insured property.