MYDEEN MATRIC. HR. SEC.

SCHOOL,
MELACAUVERY – KUMBAKONAM – 612 002

XI – COMMERCE BOOK BACK ONE MARK

[2021 – 2022]

Prepared by

Mrs. A. Vennila
Mydeen Matric. Hr. Sec. SchoolMelacauvery - Kumbakonam
 UNIT - 1
CHAPTER – 1 – HISTORICAL BACKGROUND OF COMMERCE IN THE SUB-CONTINENT

Choose the Correct Answer

1. In Pandiyas Dynasty the place where the goods are sold is
a) Angadi b) Market c) Nalangadi d) Allangadi
2. Hindrance of place is removed by
a) Transport b) Warehouse c) Salesman d) Insurance
3. Who wrote “Arthasasthra” ?
a) Kautilya b) Kambar c) Thiruvalluvar d) Elangovadigal
4. Trade and Commerce was common to Dynasty.
a) pallava b) Chola c) Panidya d) Chera
5. was first sultan who paved way in the dense forest and helped traders to move from one
market place to others place for their commercial caravans.
a) Balban b) Vascoda Gama c) Akbar d) Alauddin Khilij

UNIT - 1
CHAPTER – 2 – OBJECTIVES OF BUSINESS

1. The Primary objective of a business is

a. Making Profit b. Not Making Profit c. Special skill d. None of the above

2. Occupation of a Doctor is
a) Employment b) Business c) Profession d) Sole Proprietor

3. The following does not characteristics business activity?

a) Production of goods and services b) Presence of Risk
c) Sale or exchange of goods and services d) Salary or wages
4. Activities undertaken out of love and affection or with social service motive are termed as:
a) Economic activities b) Monetary activities
c) Non Economic Activities d) Financial Activities

UNIT - 1
CHAPTER – 3 – CLASSIFICATION OF BUSINESS ACTIVITIES

1. The industries engaged in extraction of iron ore are known as

a. Construction Industries b. Manufacturing Industries
c. Extraction Industries d. Genetic Industries

2. Production which involves several stages for manufacturing finished products is known as
a. Analytical Industry b. Synthetic Industry c. Processing Industry d. None of the above

3. Normally high level risk involved in

a. Industry b. Commerce c. Trade d. All of the above
 UNIT - 2
CHAPTER – 4 – SOLE PROPRIETORSHIP
1. Which is the oldest form of Business organisation?
a. Sole Proprietorship b. Partnership c. Co-operative Society d. Company

2. In which form the owner, establisher and manager is only one?

a. Joint Enterprise b. Government Company c. Co-operative Society d. Sole Proprietor

3. A major disadvantage of sole proprietor-ship is

a. Limited liability b. Unlimited liability c. Easy Formation d. Quick decision

4. From the following which one is Non-corporate form of business?

a. Joint stock company b. Sole trading business c. Government company d.Co-operatives

UNIT - 2
CHAPTER – 5 – HINDU UNDIVIDED FAMILY AND PARTNERSHIP

1. The firm of Hindu Undivided Family is managed by whom?

a. Owner b. Karta c. Manager d. Partner
2. In the firm of Hindu Undivided Family, how one gets the membership?
a. By Agreement b. By Birth c. By Investing Capital d. By Managing

3. The members in the joint hindu family are called

a. Karta b. coparceners c. generations d. partners
4. ‘Only the male members in the family get the right of inheritance by birth’ as
a. Hindu law b. Mitakshara Law c. Dayabhaga law d. None of these
5. A partnership is formed by
a. agreement b. relationship among persons c. the direction of government d. Friendship

UNIT - 2
CHAPTER – 6 – JOINT STOCK COMPANY

1. The relationship between outsiders and the company is defined in

a) Prospectus b) Articles of Association
c) Memorandum of Association d) Certificate of Incorporation
2. Table A of the Companies Act is a
a) Model minutes book b) Model form of Balance Sheet c) Model of AOA d) Model of MOA
3. Which of the following is created by a Special Act of Parliament or in State Assemblies?
a) Chartered company b) Foreign company c) Government company d) Statutory company
4. The Board of directors of a company is elected by
a) Creditors b) Debtors c) Debenture holders d) Share holders (members)
5. Companies established as a result of a charter granted by the King or Queen of a country is called

a) Chartered companies b) Statutory companies c) Registered companies d) Foreign companies

 UNIT - 2
CHAPTER – 7 – CO-OPERATIVE ORGANISATION

1. Membership in a cooperative organization is:

a) Not open to all b) Selective c) Open to all d) None of them

2. Cooperative fails because of

a) Unlimited membership b) Cash trading c) Mismanagement d) Loss-making
3. All cooperatives are established with
a) Philanthropic motive b) Service motive c) Profit motive d) Reform motive

4. Consumers Co-operation was first successful in

a) England b) USA c) Swiss d) India

5. Rochdale society of equitable pioneers was started by

a) Robert owen b) H.C.Calvert c) Talmaki d) Lambert

UNIT - 2
CHAPTER – 9 – GOVERNMENT ORGANISATION

1. The share capital of the government company must not be less than
a) 75 % b) 60 % c) 95 % d) 51 %

2. The oldest form of organisation in public sector

a) Public Sector Undertakings b) Departmental Undertakings
c) Multi National Corportions d) Statutory Corportion

3. A Government company purchases shares in the name of

a) Prime Minister b) President c) Chief Justice of India d) State Chief Minister

4. The primary objective of the state enterprises is to

a) Earn profit b) Provide Employment c) Serve the People d) All the Above

UNIT - 3
CHAPTER – 10 – RESERVE BANK OF INDIA

1. Which bank has the power to issue bank notes?

(a) Central bank (b) Commercial bank (c) Co-operative banks (d) Foreign banks

2. The Central bank of India is

(a) PNB (b) SBI (c) ICICI (d) RBI

3. The Reserve Bank of India commenced its operations from April 1,

(a) 1936 (b) 1935 (c)1934 (d) 1933

4. Bankers are not only dealers of money but also leaders in

(a) Economic development (b) Trade development
(c) Industry development (d)Service development
5. Which of the following is not a function of a central bank?
(a) Guiding and regulating the banking system of a country (b) Deal with the general public
(c) Acts essentially as Government banker (d) Maintains deposit accounts of all other banks

UNIT - 3
CHAPTER – 12 – FUNCTIONS OF COMMERCIAL BANKS

1. Electronic banking can be done through

(a) Computers (b) Mobile phones (c) ATM (d) All of the above

2. Minimum how much amount can be transferred through RTGS?

(a) Any amount (b) 50,000 (c) 2 lakh (d) 5 lakh

3. The largest commercial bank of India

(a) ICICI (b) SBI (c) PNB (d) RBI
4. In which kind of account, it is compulsory to deposit certain amount at certain time?
(a) Saving deposit (b) Fixed deposit (c) Current deposit (d) Recurring deposit

5. Which of the following is not a type of advance provided by commercial bank?

(a) Collecting and supplying business information (b) Overdraft
(c) Cash credit (d) Discounting of bills

UNIT - 3
CHAPTER – 13 – WAREHOUSING

1. Warehouses remove the hindrance of

a) Person b) Time c) Risk d) Knowledge

2. A warehouse holds goods as a center.

a) Marketing b) sorting c) distribution d) selling

3. can be given as a collateral security for getting financial assistance from bank.
a) Dock warrant b) Warehouse receipt c) Dock receipt d) Warehouse warrant
4. warehouses are licensed by the government and are permitted to accept the goods on bond.
a) Bonded b) Cold Storage c) Public d) All the Above

5. warehouses are used for storing perishable goods like fruits, vegetables etc.
a) Bonded b) Private c) Cold storage d) Co-operative

UNIT - 3
CHAPTER – 15 – INSURANCE
1. The basic principle of insurance is
a) Insurable Interest b) Co-Operation c) Subrogation d) Proximate causa
2. is not a type of general insurance
a) Marine Insurance b) Life Insurance c) Fidelity Insurance d) Fire Insurance

3. Which of the following is not a function of insurance?

a)Lending Funds b) Risk sharing c) Capital formation d) Protection of life

4. Which of the following in not applicable in insurance contract?

a) Unilateral contract b) Conditional contract c) Indemnity contract d) Inter-personal contract

5. Which one of the following is a type of marine insurance?

a) Money back b) Mediclaim c) Hull insurance d) Corgo insurance

UNIT - 4
CHAPTER – 16 – EMERGING SERVICE BUSINESS IN INDIA

1. Buying and selling of goods through electronic network is known as

a) E-commerce b) internet c) Website d) Trade

2. An organization carrying out activities to move goods from producer to consumer is

(a) Transport (b) Logistics (c) Channels (d) Marketing
3. The main benefit of outsourcing is
(a) Productivity (b) Cost reduction (c) Skill (d) Units

UNIT - 6
CHAPTER – 19 – SOURCES OF BUSINESS FINANCE
1. What is defined as the provision of money at the time when it is required?
a. Finance b. Bank c. Cash management d. None of these
2. Internal sources of capital are those that are
a Generated through outsiders such as suppliers b. Generated through loans from commercial banks
c. Generated through issue of shares d. Generated within the business
3. Debenture holders are entitled to a fixed rate of
a. Dividend b. Profits c. Interest d. Ratios
4. Public deposits are the deposits which are raised directly from
a. The public b. The directors c. The auditors d. The owners
5. Equity shareholders are the of a company
a. Creditors b. Owners c. Debtors d. Employees

UNIT - 6
CHAPTER – 21 – MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) AND SELF HELP GROUPS (SHGs)

1. MSMED Act was enacted in the year

(a) 2004 (b) 2007 (c) 2006 (d) 2008

2. MSMEs are important for the nation’s economy because they significantly contribute to
(a) Industrial production (b) Exports (c) Employment (d) All the above
3. Self help groups convert the savings into a common fund known as
(a) Common fund (b) Group corpus fund (c) Group fund (d) none of the above

4. There are distinct modes of credit to Self Help Groups.

(a) 1 (b) 2 (c) 3 (d) 4

5. Investment limit of a micro enterprise under manufacturing sector does not exceed lakhs
(a) 10 (b) 20 (c) 25 (d) 50

UNIT – 7
CHAPTER – 22 – TYPES OF TRADE
1. The purchase of goods from a foreign country is called----------
a. Import b. Export c. Entrepot d. Re-export

2. When goods are imported for the purpose of export it is called as -------- --.
a. Foreign Trade b. Home Trade c. Entrepot d. Trade

3 ----------- acts as a connective link between the producer and the consumer.
a. Trade b. Industry c. Commerce d. Business

4. The aim of home trade is ---------------- --.

a. To raise the standard of living b. To provide the essential goods and services economically
c. To raise the national income d. To obtain all types of goods.

5. Internal trade can be classified into ---------- categories

a. Three b. Four c. Two d. Five

UNIT – 7
CHAPTER – 23 – CHANNELS OF DISTRIBUTION
1. Trade middleman who acts as a link between wholesaler and customers refers to a --------- --.
a. Producer b. Broker c. Retailer d. Customer

2. Who is the first middleman in the channel of distribution?

a. Wholesaler b. Producer c. Retailer d. Customer

3 . ----------buy the goods from the producer and sell it to the retailers.
a. Manufacturer b. Wholesaler c. Retailer d. consumers

4 . ----------are agents who merely bring the buyer and the seller into contact.
a. Broker b. Commission agent c. Selling agent d. stockiest

5. Merchant middlemen can be classified into ----------- categories.

a. Three b. Two c. Five d. Four

UNIT – 7
CHAPTER – 24 - RETAILING
1. Retailers deal in quantity of goods
a) Small b) Large c) Medium d) Limited
2. Small scale Fixed retailers include
a) General stores b) Pedlars c) Cheap Jacks d) Hawkers

3. Small shops which deal in a particular line of products are called as

a) Market traders b) Single line stores c) Sugar market d) Street stalls

4. are mobile traders who deal in low priced articles with no fixed place of business.
a) Shopping malls b) Super markets c) Street stalls d) Itinerant traders

UNIT – 8
CHAPTER – 25 – INTERNATIONAL BUSINESS
1. Movement of goods , services, intellectual property, human assets, technology and so on among the
countries.
(a) International Trade (b) International business (c) Entrepot Trade (d) Internal trade

UNIT – 9
CHAPTER – 29 – ELEMENTS OF CONTRACT
1. An agreement enforceable by law is a
(a) Enforceable acceptance (b) Accepted offer (c) Approved promise (d) Contract
2. Every promise and every set of promises, forming the consideration for each other, is an
(a) Agreement (b) Contract (c) Offer (d) Acceptance
3. Void agreement signifies
(a) Agreement illegal in nature (b) Agreement not enforceable by law
(c) Agreement violating legal procedure (d) Agreement against public policy
4. Acceptance to be valid must
(a) Be absolute (b) Be unqualified (c) Both be absolute & unqualified (d) Be conditional
5. A contract with or by a minor is a
(a) Valid contract (b) Void contract (c) Voidable contract (d) Voidable at the option of either party.

UNIT – 9
CHAPTER – 31 – DISCHARGE AND BREACH OF A CONTRACT

1. On the valid performance of the contractual obligation by the parties, the contract
a. Is discharged b. Becomes enforceable c. Becomes void d. None of these
2. An agreement to do an act impossible in itself under Section.56 is
a. Void b. Valid c. Voidable d. Unenforceable
3. Any agreement which becomes impossible to perform under various circumstances
a. Voidable b. Void c. Valid d. None of these
4. Discharge by mutual agreement may involve
a. Novation b. Rescission c. Alteration d. All of the above
5. The compensation given for breach of contract is
a. Damage b. Remuneration c. Money d. Cheque
 UNIT – 10
CHAPTER – 32 – DIRECT TAXES
1. Income Tax is
a) A business tax b) A direct tax c) An indirect tax d) None of these
2. Period of assessment year is
a) 1st April to 31st March b) 1st March to 28th Feb c) 1st July to 30th June d) 1st Jan. to 31st Dec.
3. The year in which income is earned is known as
a) Assessment Year b) Previous Year c) Light Year d) Calendar Year
4. The aggregate income under five heads is termed as
a) Gross Total Income (b) Total Income (c) Salary Income (d) Business Income
5. Agricultural income earned in India is
a) Fully Taxable b) Fully Exempted c) Not Considered for Income d) None of the above

UNIT – 10
CHAPTER – 33 – INDIRECT TAXATION

1. Who is the chairman of the GST council?

a) RBI Governor b) Finance Minister c) Prime Minister d) President of India
2. GST Stands for
a) Goods and Supply Tax b) Government Sales Tax c) Goods and Services Tax d) General Sales Tax
3. What kind of Tax the GST is?
a) Direct Tax b) Indirect Tax
c) Dependence on the Type of Goods and Services d) All Business Organisations
4. What is IGST?
(a) Integrated Goods and Service Tax (b) Indian Goods and Service Tax
(c) Initial Goods and Service Tax (d) All the Above
5. In India GST became effective from?
a) 1st April, 2017 b) 1st January, 2017 c) 1st July, 2017 d) 1st March, 2017

***** All the Best *****