CLASS XI
BUSINESS STUDIES (054)
SAMPLE QUESTION PAPER (2025-26)
MM – 80 TIME: 3 HOURS
General instructions :
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75
words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.
7. Attempt all parts of the question together.
1. Assertion (A): Business starts with production and end with consumption. 1
Reason (R): Making the finished products reach the consumer involves a
series of steps.
a) Both A & R are true, But R is not the correct explanation of A.
b) Both A & R are false.
c) A is true, but R is false.
d) Both A & R are true and R is the correct explanation of A.
2. Group of persons entered into an agreement with a builder for office 1
construction before the company’s incorporation. Later, the company denied
liability under this agreement.
Choose the correct type of contract involved:
(a) Statutory contract
(b) Government contract
(c) Preliminary contract
(d) Provisional contract
3. Recall the form of business where the entire profit and risk remain with one 1
individual, and personal property may be used to repay liability.
a) Sole Proprietorship
b) Cooperative society
c) Joint stock company
d) Partnership
4. Navratan Ltd. is a company engaged in the production and distribution of 1
heavy electric goods. Pattern of shareholding in the company is as follows:
· Government of India – 15%
· Government of Bihar – 26%
· Government of Assam – 10%
· General Public – 49%
Navratan Ltd. can be classified as _____.
a) Small Company
b) Government Company
c) Private Company
d) Multinational Company
5. Assertion (A): Like an individual, business enterprise should also be a loyal 1
citizen of the state.
Reason (R): The business is also a part of system. It makes use of resources
of society.
a) Both A & R are true, But R is not the correct explanation of A.
b) Both A & R are false.
c) A is true, but R is false.
d) Both A & R are true and R is the correct explanation of A.
6. Social Responsibility of business refers to its obligation to take those decisions 1
and perform those actions which are desirable in terms of ______of our
society.
a) Profit and Gain
b) Objectives and values
c) Losses and harms
d) Risks and threats
7. For how many years do patents allows exclusive rights to the inventor. 1
a) 10 years
b) 15 years
c) 20 years
d) 25 years
8. Out of the following identify the statement that is not true in case of 1
debentures.
a) It is an instrument to raise long-term debt capital.
b) Payment of interest on debentures is compulsory.
c) Debenture holders carry voting rights.
d) Issue of debentures creates a charge on the assets of the company.
9. In a survey conducted by Government of India, it was found that many farmers 1
of the country are unable to secure loan for their agricultural needs. Keeping
this in mind, the government decided to form a public enterprise under a
Special Act of the Parliament, which will be free from government interference
and will have financial and operational autonomy. Suggest a suitable type of
public enterprise to the government.
a) Departmental undertaking
b) Government company
c) Statutory corporation
d) Public private partnership
10. Choose the correct pair from following. 1
A. Equity Shares i. Charge against assets of the company
B. Preference Shares ii Fixed rate of dividend
C. Retained Earnings iii. Irredeemably
a) A-ii
b) C-iii
c) A-i
d) B-ii
11. Seeing the business opportunities in Food industry, Sagar Bagada after 1
completing his graduation in Agriculture engineering, decided to his own
enterprise. His dream turned into reality when enterprise, "Swaad Food
Industries" set up its food and beverages processing plant in 'Mitrapura", one
of the rural areas of Rajasthan, under Start-up India Scheme launched on 16th
January, 2016. The enterprise opted for labour intensive technique, due to
easy availability of labour at lower cost. Within no time, he came in the list of
successful entrepreneurs.
“The enterprise opted for labour intensive technique, due to easy availability of
labour at lower cost." Identify the need for entrepreneurship satisfied in the
given statement.
a) Organisation of production
b) Generation of employment
c) Economic efficiency
d) Generation of business opportunities for others
12. Name the kind of return on investment given to the investors shown in the 1
given picture.
a) Commercial paper
b) Dividend
c) Retained earnings
d) Trade credit
13. Wholesalers provide ___ and ____ utility by making products available at right 1
place and required time.
a) Time & Form
b) Time & Place
c) Place & Form
d) Finance & Place
14 Identify which of the following is a service of retailers to consumers. 1
a) Help in marketing function
b) Risk sharing
c) Wide selection
d) Specialized knowledge
15 It is a self-regulating mechanism, which not only checks tax frauds and reduce 1
the tax evasion, but also brings in more and more businesses into the formal
economy.
a) SGST
b) Value-added tax
c) Goods and services Tax
d) IGST
16 For foreign trade, its mandatory to get registered with ___ to obtain IEC 1
number.
a) The Directorate General Foreign Trade
b) State government
c) Foreign Exchange banks
d) RBI
17 ______ is NOT the other name of Cart Ticket. 1
a) Cart chit
b) Vehicle pass
c) Gate pass
d) Airway bill
18 The refund of excise duty is known as _____. 1
a) Exemption
b) Duty drawback
c) Indent
d) Tax holiday
19 Statement I: The amount of working capital required varies from one business 1
concern to another depending on various factors.
Statement II: Larger funds may be required for building higher inventories for
the festive season or to meet current debts or expand the business or to shift
to a new location.
a) Both the statements are true.
b) Both the statements are false.
c) Statement I is true, Statement II is false.
d) Statement II is true, Statement I is false
20 ______is the maximum turnover limit for a micro enterprise as per MSMED 1
Act.
a) 10 crores
b) 1 crore
c) 5 crores
d) 2 crores
21. (A) Describe the features of Public deposits. 3
OR
(B) Discuss any three features of Preference shares
22. Radha stays in Kashipur, a city of Udham Singh Nagar district, in the Indian 3
state of Harakhand. She sees a job advertisement in the newspaper and
decides to apply for them through post. Her father advises her to send the
application through registered post instead of an ordinary mail.
(a) Mention one point that makes registered post and ordinary post different
from each other.
(b) Explain briefly any two other postal services available in our country.
23. (A) A, B & C were partners in a financing firm. B & C had gone for a meeting in 3
America for analysing business prospects in that country. In the meanwhile, A
invested a huge amount of money in buying shares of a new company by
borrowing money from Mr. X. This turned out to be a bad deal as the share
prices soon fell. When B & C came back they said they were not liable to pay
to Mr. X as they did not take the money.
Were B & C right in doing so, Justify the reason by stating appropriate feature
of partnership.
OR
(B) Laxmi & Vishnu after completing a bachelor degree course in mass
communication and media planning plan to promote two different advertising
companies in Nagpur and Kanpur, respectively. As promoters they have been
advised to take steps to prepare certain legal documents, which have to be
submitted under the law, to the Registrar of Companies for getting the
company registered. Explain any two such documents that Laxmi & Vishnu
has to prepare as promoters.
24. “In year 2001, Sony Corporation of Tokyo, Japan a renowned technological 3
giant with Ericsson Pvt. Ltd of India brought a technological reform in the
electronic home appliances industry by forming a new entity Sony Ericsson”.
This new entity exhibit the one of the type of Business enterprise. Identify it,
Also state any two advantages of the new enterprise to the both the
companies.
25. Different situations in different business are being elaborated below: 4
a) A matchstick factory in Nepal which got distruct by recent earthquake.
b) A company was charged with evasion of tax and asked to Pay fine in
crores, which leads heavy losses.
c) A Senior Manager in Telecom Company share confidential information
about company to competitors.
d) A Typewriter becoming redundant.
Identify and explain the causes of business risks highlighted in above case.
26. (A) Explain the scope of e-business. 4
OR
(B) Explain any four benefits of e-business.
27. Parineeta has set up a small business unit in Ghaziabad to manufacture 4
various types of home decorations items. She deals in various kinds of vases,
chimes, figurines, and other things that can beautify houses. She now wishes
to export her products to different countries and develop export-worthiness.
(a) Name the agency that she can approach in this regard.
(b) Also list any three functions other than identified in part (a) of this agency.
28. “It is in the interest of business to fulfill the social responsibilities towards 4
different interested group”. Defend or refute the statement.
29. (A) “A manufacturer supplying goods in large quantities to a wholesaler. The 4
wholesaler is seen storing the goods in a warehouse, placing repeated orders,
and sending regular feedback to the manufacturer about customer
preferences and product demand. Arrows point from wholesaler to both
manufacturer and retailers”. State any four services that the wholesaler
provides to the manufacturer.
OR
(B) Rectify the following statements if found wrong-
a) A wholesaler buys goods from the retailer.
b) The amount of capital required is more in case of retail trade as
compared to the wholesale trade.
c) A retailer performs various functions like warehousing for storage of
goods, grading and packaging, etc.
d) A wholesaler has direct link with the end consumers.
30. The Government of India dreams to make India a manufacturing hub and 4
encourages the foreign company manufacture goods here under its 'Make in
India' initiative. In February, 2017, 'The Apple India Private Ltd. California-
based iPhone maker ‘Apple Inc.' (Incorporated), reached an agreement with
the Karnataka gone to set up a manufacturing plant in Bengaluru. Apple's
decision on manufacturing has further enhanced reputation of Bengaluru as
the most preferred destination for foreign investment. This decision would help
'Apple' to improve its growth prospects in India but also it would create
employment opportunities for Indians. Manufacturing 'i-Phone' in India would
make the maximum Indians enjoy international technology at low prices and
higher standards of living. By quoting the lines, identify the benefits of
international business to the nation mentioned in the above case.
31. (A) Paraphrase: 6
a) Bank Draft
b) Bank overdraft
c) Cash credit
OR
(B) Paraphrase:
a) Saving Account
b) Recurring Deposit Account
c) Fixed Deposit Account
32. Ridhi Organics Pvt. Ltd. has been operating successfully for the past eight 6
years in the organic skincare market. Instead of distributing all profits as
dividends, the management decides to keep a significant portion of the profit
to fund the company’s future expansion. The directors argue that this
approach will reduce dependence on external borrowing and strengthen the
company’s financial position. However, some shareholders express concern
about reduced dividends and demand clarity on the benefits of this policy.
a) Mention any three advantages of using as a source of business finance
discussed above.
b) Explain any three features associated with the identified source.
33. Mr. Abhishek is a sole proprietor. He has been doing the wholesale business 6
of tea for the last three years. The brand name of his tea is ‘Tadka Chai’. This
is a popular brand of its region. Now, Mr. Abhishek has been worried about
two issues. First, his business unit is situated in an unorganized sector and
therefore, he is unable to buy goods on credit from any trader easily. Similarly,
banks and other lending institutions hesitate to extend a long-term loan to him.
Such a treatment by the people produces the inferiority complex in him. The
second issue worrying him is that he has unlimited liability. If unfortunately he
suffers heavy loss in business, his business property and personal property
both will be finished. He wants to get rid of these worries. So, he contacts a
business specialist, who suggests a new form of business organisation which
will remove all his problems. With the idea of encouraging corporatization of
business like ‘Tadka Chai’.
Name the type of one of the business organization must have been advised to
Mr. Abhishek by the business specialist, Also state its features ( any five)
34. (A) Differentiate between domestic and international trade ( any six) 6
OR
(B) Differentiate between departmental store & chain store. (any six)
