Class XI – Business Studies
Sample Paper 1
Q1–20 (1 mark each)
1. The exchange of goods without the use of money is called:
(A) Trade (B) Barter system (C) Commerce (D) Market
2. Assertion (A): Industry refers to economic activities involving extraction and production.
Reason (R): It includes trade and auxiliaries to trade.
(A) Both A & R true and R explains A
(B) Both A & R true but R not explanation
(C) A true, R false
(D) A false, R true
3. Which type of cooperative society provides credit facilities to members?
4. True/False: A joint stock company has unlimited liability of shareholders.
5. Identify the form of business organisation from picture (showing single owner and
unlimited liability).
6. Which of the following is a feature of a Multinational Corporation?
(A) Separate legal entity
(B) Global presence
(C) Ownership by one person
(D) Unlimited liability
7. Statement I: Departmental undertakings are controlled by a government department.
Statement II: Statutory corporations are established by a special Act of Parliament.
Choose correct:
(A) I correct, II wrong
(B) I wrong, II correct
(C) Both correct
(D) Both wrong
8. Which of the following is NOT a characteristic of services?
(A) Intangibility (B) Perishability (C) Standardisation (D) Storage
9. Which telecom service allows sending written messages using mobile phones?
10. E-tickets booking for railways is an example of:
(A) e-Promotion
(B) e-Banking
(C) e-Booking
(D) e-Trading
11. True/False: In e-business, transactions can be carried out 24×7.
12. Which principle of insurance says “there must be a direct relationship between loss and
insured peril”?
13. Which type of bank account is suitable for businessmen with frequent transactions?
14. Assertion (A): Business ethics promote goodwill.
Reason (R): Ethical businesses may lose reputation in long run.
15. Which of the following is a limitation of sole proprietorship?
(A) Easy formation
(B) Secrecy of business
(C) Unlimited liability
(D) Quick decision making
16. Identify type of e-commerce: A consumer sells his old car to another consumer on OLX.
17. Match the following:
A. Life Insurance → (i) Compensation for ship damage
B. Fire Insurance → (ii) Compensation for building fire
C. Marine Insurance → (iii) Protection against death risk
18. Which business service provides safe-keeping of valuables like jewellery and documents?
19. Which form of business organisation is formed under the Hindu Succession Act?
20. State one objective of business ethics.
Q21–24 (3 Marks each)
21. Differentiate between Internal Trade and External Trade (three points).
22. State three merits of Joint Hindu Family Business.
23. Explain three responsibilities of business towards employees.
24. What is outsourcing? State two advantages.
Q25–30 (4 Marks each)
25. State and explain four auxiliaries to trade.
26. What is Partnership Deed? State three contents.
27. Distinguish between Private and Public Company (any four points).
28. Explain four limitations of e-business.
29. “Business must pursue social responsibility.” State four arguments in support of this.
30. Explain features of a Statutory Corporation.
Q31–34 (6 Marks each)
31. Explain the classification of industries with suitable examples.
32. “A sole proprietor enjoys advantages but also suffers from disadvantages.” Explain six
merits and limitations.
33. Explain in detail the principles of insurance.
34. Explain different types of cooperative societies with examples.
Sample Paper 2
Q1–20 (1 mark each)
1. The activities concerned with removing obstacles in the exchange of goods are called:
(A) Trade (B) Commerce (C) Auxiliaries to trade (D) Banking
2. Assertion (A): Secondary industries include construction activities.
Reason (R): They provide support to primary industries.
(A) Both A & R true and R explains A
(B) Both A & R true but R not explanation
(C) A true, R false
(D) A false, R true
3. Which type of cooperative society protects the interests of producers by making
available inputs and services?
4. True/False: Liability of members in a Joint Hindu Family Business is limited.
5. Identify the form of business organisation from picture (showing many members,
voluntary association, and democratic control).
6. Which of the following is NOT a feature of a Public Sector Enterprise?
(A) Government ownership
(B) Profit motive
(C) Public welfare
(D) Control by Government
7. Statement I: MNCs operate in more than one country.
Statement II: Their head office is usually located in the host country.
Choose correct option:
(A) I correct, II wrong
(B) I wrong, II correct
(C) Both correct
(D) Both wrong
8. Which service is provided by postal department for transferring money within India?
9. Which telecom service is suitable for internet connectivity on mobile phones?
10. “Flipkart offers a platform for consumers to sell to other consumers.” Identify the type
of e-commerce.
11. True/False: Services are tangible and can be stored for future use.
12. Which principle of insurance states “the insured should not gain profit from insurance”?
13. Which type of bank account offers high liquidity and is suitable for salaried persons?
14. Assertion (A): Business should act ethically.
Reason (R): Ethical practices reduce trust among stakeholders.
15. Which of the following is a limitation of partnership?
(A) More financial resources
(B) Unlimited liability
(C) Sharing of risks
(D) Specialisation of partners
16. Identify the form of organisation: “A government company where more than 51% of
capital is held by government.”
17. Match the following:
A. Saving Account → (i) Frequent deposits and withdrawals by businessmen
B. Current Account → (ii) Provides interest on deposits for individuals
C. Fixed Deposit → (iii) High rate of interest for fixed time period
18. Which business service helps in providing safety of goods from loss, fire and theft during
storage and transport?
19. Name the business organisation where Karta is the head of the family business.
20. State one argument against social responsibility of business.
Q21–24 (3 Marks each)
21. Explain any three differences between Industry and Commerce.
22. State three demerits of sole proprietorship.
23. Explain three responsibilities of business towards consumers.
24. Define BPO. State two benefits of outsourcing.
Q25–30 (4 Marks each)
25. Explain four merits of Internal Trade.
26. Explain the procedure of registration of a partnership firm.
27. Differentiate between Private and Public Company (any four points).
28. State four advantages of e-business.
29. “Business has responsibility towards environment.” State four ways to discharge this
responsibility.
30. Explain four features of a Government Company.
Q31–34 (6 Marks each)
31. Explain classification of business activities into Industry and Commerce with examples.
32. Discuss six merits and limitations of Partnership form of business.
33. Explain types of life insurance policies in detail.
34. Explain different types of cooperative societies with suitable examples.
