SAMPLE PAPER - 1

Q. NO. QUESTION MARKS

Name the organisation which is considered as a part of
1. 1
government only.
In order to call a company, a government company,
2. how much minimum partnership is necessary for the 1
Government’s ownership?

Heterogeneity is the feature of which type of business

3. service. 1
a) Banking b) Insurance d) Warehousing d) All

4. Who can get an overdraft from a bank. 1

5. What is meant by mode of business. 1
When enterprises behave as good citizen, towards
6. 1
which group are they showing their responsibility.
The term “redeemable” is used for which of the
following:
7. 1
a) Preference Shares c) Equity Shares
b) Trade Credit d) None of these
Funds required for purchasing current assets is an
example of
a) Fixed capital requirement
8. 1
b) Ploughing back of profits
c) Working capital requirement
d) Lease financing
9. What is the status of debenture holders in a company. 1
Give the name of the financial source when one
10 1
company give loan to another company.
 The investment limit of SSI does not exceed
11 a) Above Rs.25 lakh & up to Rs.5 crore 1
b) Rs.2 crore c) Rs.3 crore d) Rs.10 crore

Which of the following provides opportunity for artisan.

12. a) Companies c) Large-scale business 1
b) Small business d) None of the above

What is the outcome of entrepreneurship called.

13. a) Entrepreneur c) Entrepreneurship 1
b) Enterprise d) Entrepreneur & Entrepreneurship

To sell readymade garments for children, men, women

etc. is the example of:
14. 1
a) Single-shop product c) Single-line shop
b) General store d) None of these
Under GST system, the origin of GST takes place on
15. the basis of the place of of goods & services. 1
(consumption/production)
Assertion (A): Itinerant retailers do not have
fixed selling point.
Reason (R): Fixed Shop retailers have fixed
selling point.
a) Both assertion (A) & reason (R) are correct &
16. 1
reason is the correct explanation of assertion.
b) Both assertion (A) & reason (R) are correct but
reason is not the correct explanation of assertion.
c) Assertion (A) is correct but reason (R) is incorrect.
d) Assertion (A) is incorrect but reason (R) is correct.
 You are a student of class 11 and you have a special
interest in the subject Business Studies. Your friend
17. wants that he should do his business on the basis of 1
Advertisement only, without opening any shop. You
suggest to him what kind of business he should do.

An exporter demands from an importer for the

18 satisfaction about 1
the payment.

The WTO was established on .

19 a) 1st January, 1955 c) 1st January, 1995 1
b) 1st January, 2005 d) 1st January, 2009

Which of the following is not the document of import

20 trade. 1
a) Indent b) Bill of lading c) Invoice d) Shipping bill

Identify the following traits of business, profession &

employment:
a) Hari sells mobile phones on behalf of his employer.
b) It requires minimum academic & other qualifications.
21 3
c) A hawker sells toys for children outside a function.
d) Dhruv is the manager of a mobile company.
e) V Sanjay is an advocate of High Court.
f) A person repairs scooters on road side.
A, B & C are partners in a firm manufacturing auto
part. Their firm is not registered. In order to increase
the earnings of the firm, B decided to use low quality
22 raw materials without the knowledge of A & C. As a 3
result, many accidents were reported by the
consumers & a case has been filed against the firm.
a) Is this wrong act of B binding on A & C?
 b) State the feature related to it.
c) Can A & C file case against B & why?
ABC Ltd. is planning to expand their business & need
money. The finance manager reported that company is
not in a position to bear extra burden of paying
interest & equity shareholders insisted not to issue
23 more shares as there is risk of losing control on issue of 3
new shares in the market.
a) Suggest a source of owner’s fund suitable in above
case.
b) State any two advantages of this source.
‘Rakhi Footwear’ deals in shoes. This company has
opened 500 shops at different places of the whole
country. The specialty of the business of this company
is that at all its shops the goods available are of the
24 same type & their price is also the same. By starting 3
this type of business, the company has done away with
the Middlemen. The people are happy to buy goods
from the producer or manufacturer directly. Identify
the trade of ‘Rakhi Footwear’ & describe its features.
“Earning of profit cannot be the objective of business
any more than the eating is the objective of living.” Do
25 4
you agree with this statement? Give reasons in
support of your answer.
The government planned to begin a road project. The
government needed management specialists and
financial help to complete it. The government contacted
26 4
the private sector to fulfil this requirement. Now, this
project will be completed jointly by both the public
sector and private sector. What kind of partnership is
 it? Explain its features.
Differentiate between e-business & traditional
business on the following basis:
27 4
a) Personal touch c) Risk involved
b) Setting up cost d) Human resource required

What do you mean by the principles derived from

28 social values which guide and govern the conduct of 4
businessmen. Explain its elements.

29 Write a detailed note on IPR. 4

Describe the services provided by retailer to
30 4
wholesaler & consumer.

“It is said to be an artificial person created by law,

31 having a separate entity with perpetual succession & 6
common seal.” What is it? Explain its features.

Explain the following principles of insurance with

example:
32 a) Principle of causa Proxima 6
b) Principle of contribution
c) Principle of subrogation
The directors of a company have decided to set up a
new plant at an estimated cost of rupees ten crores.
33 6
State the sources of finance available along with their
merits.
Jaipur Handicraft House has received a grand order
for handmade products from a German company. The
exporter has obtained the pre- shipment inspection
34 6
report under the Export Quality Control & Inspection
Act, 1963 & also got the Excise clearance certificate
from the authorities. Briefly explain the next six
procedural steps to be taken by the Indian
Counterpart to export these goods.
 SAMPLE PAPER - 2
Q. No QUESTIONS Marks
Which of the following comes under Modern Small

1. Industries.
1
a) Khadi b) Handicrafts c) Coir d) Power looms
Limit of investment in small scale industry is .
2. 1
a) ten crore b) five crore c) two crore d) one crore
consists of various organisations owned and
managed by the government.
3.
a) Public sector b) Private sector
1
c) Service sector d) Manufacturing sector
State which of the following statements regarding reasons
for international business are correct:
a)International business transactions involve use of
currencies of more than one country.
b) Labour productivity and production costs differ among
4.
nations due to various socioeconomic, geographical and
political reasons
c) Availability of various factors of production differs 1
among nations

d)All of the above

A warehouse keeper accepts goods for the purpose of .
5. 1
a) export b) selling c) storage d) packaging
B2B commerce means:

a) Firm's interactions with other business

6. b)Firm's internal processes

1
c) Firm's interactions with its customers

d)None of these
 Funds required for purchasing current assets is an
example of:
7.
a) Fixed capital requirement c) Lease financing
1
b)Working capital requirement d) Ploughing back of profits
Equity shareholder are called of the company.
8. 1
a) Owners (b) partners (c) Executives (d) Guardians
are set up under an Act of parliament and are
governed by the provisions of the Act.
9.
a) Limited companies b) Partnership
1
c) Private companies d) Statutory corporations
Which of the following is the form of business organisation.

10. a) Mixed Sector b) Private Sector

1
c) Public Sector d) All of these
Where is WTO headquartered.
11. 1
a) Uruguay b) Doha c) Geneva d) Washington
Which of the following statements is correct for
wholesalers.

a)They undertake additional activities.

12. b) They generally take the title of the goods and bear the
business risks in their own name
1
c) They engage in buying and selling of goods

d)All of these
Stages in the formation of a public company are in the
following order

a)Capital Subscription, Promotion, Incorporation,

13.
Commencement of Business
1
b) Incorporation, Capital Subscription, Promotion,
Commencement of Business
 c) Promotion, Commencement of Business, Incorporation,
Capital Subscription

d)Promotion, Incorporation, Capital Subscription,

Commencement of Business
The term “redeemable” is used for

14. (a) Preference shares (b) Commercial Papers

1
(c) Equity shares (d) Public deposits
Which of the following is not an environmental problem?

15. a) Afforestation b) Danger to biological diversity

1
c) Ozone depletion d) Global warming
Indian Railways is the example of ____ form of
public enterprises.
16. 1
a) Public corporations b) Government Company
c) Departmental Undertaking d) None of these
The small-scale industry can enjoy the status of if it
supplies not less than 50% of its production to another

17. industry, referred to as the parent unit.

a) ancillary small industry b) export-oriented unit 1

c) micro business industry d) village industries

Cattle breeding farms, poultry farms, and fish hatchery

18. come under which industry.
a) Genetic b) Manufacturing c) Extractive d) None 1

The District Industries Centre’s Programme was launched

on:
19.
a) September 1, 1978 b) July 1, 1978 1

c) May 1, 1978 d) 15 August 1978

Metro is an example of which form of public sector

20.
enterprises? 1
 a) Government Company b) Public Corporation

c) Multinational Companies d) PPP

The forwarding Agent of Paliwal Private Ltd., after
getting the goods loaded on the ship gets the Mate's
21
Receipt. What will the Forwarding Agent have to do 3
immediately after it? Explain briefly.
Folly is doing his business of buying and selling of garments
products within India. He goes on business trips around his
state even on very short notice. Sometimes through his own
car. There are no or very few formalities involved in Folly's
business. Payments are made and received in the home
22.
country currency only i.e., no exchange of currency is
required.
i. Buying and selling goods within the geographical area 3
of the country. Which type of trade is it?
ii. Give types of such trade.
Distinguish between Pure risk and Speculative risk on the
following basis:
23. i. Meaning ii. Possibility of profits/loss iii. Risk coverage.
OR
3
Name the six hindrances to trade.
Why is adequate finance necessary to start the business.

24. OR
3
What are the advantages of preference shares?
State and explain briefly the first four steps of executing the

25 Import trade.

. OR 4

State the objectives of World trade Organisation (WTO).

 India is the largest milk producer in the world. Moreover,
increasing demand for milk and milk product has made
dairy farming a profitable business. Considering these facts
Raghu, an industrialist has decided to set up a dairy farm
and a cheese producing unit in Haryana. He plans to deal in
an extensive range of Fresh Mozzarella, Processed Cheeses,
Pizza Cheese, Cheese Singles, Naturally Flavored Cheeses
(with Black pepper, Garlic, Cumin, Herbs & Spice),
Mascarpone, Mozzarella & Grated Cheese for Pizza in
various combinations. In the context of the above case:

i. Identify the different kinds of industries Raghu wants to

26 set up.

. ii. State and explain the categories of types of industries to

which the different kind industries as identified in part
(i) belong to.
OR

Karan is running a grocery shop in the nearby local market

whereas his friend Priyanshu works as a finance manager
4
in a reputed IT company. In the context of the above case:
i. Identify the different types of economic activities both
the friends are engaged in.
ii. Distinguish between the two different types of
economic activities as identified in part (i) of the
question (any two points).
 After completing a course in gemology, Esha joins her
father in the family business of fashion jewellery. Her
father owns two showrooms at different locations in the city
and operates his business through them. However, Esha
intends to expand the business by venturing into online
retailing. She also intends to introduce flexible
manufacturing with the use of computer networks wherein
27 the marketing department can interact constantly with the
. production department and get the customized products
made as per the requirements of the individual customer.
a. How is the mode of business that Esha intends to adopt
different from the one that her father has been following 4
over the years?
b. Distinguish between the two different modes of business
as identified in part (a) of the question by giving any four
points.
Why is the government company form of organization
28 4
preferred to other types in the public sector?
Britannia Industries Ltd. is committed to helping secure
every child's right to growth and development through good
food every day. The company is working in partnership with
Global Alliance for Improved Nutrition (GAIN) and the
Nandi Foundation to supply iron-fortified Tiger biscuits to
supplement the Mid- Day Meal program in schools. Iron
29. deficiency among Indian children is a key cause of school
dropouts as well as decreased productivity. In keeping with
its core essence of "Swasth Khao Tan Man Jagao", the
company constantly strives to find sustainable opportunities
to drive home the message of nutrition and good food habits 4
among children at the right age. In the context of the above
case answer the following questions:
 a. Identify the kind of social responsibility being discharged
by Britannia Industries Ltd.
b. Briefly explain any two other kinds of social
responsibilities.
Suhasini and some of her friends jointly set up 'Trimurti
Limited'. The business of their company was to
manufacture blankets at a low rate. At the time of setting
up the company, they issued 25000 shares of the face value
of 100. In this way, they started their business with a
capital of 25 lac. Before collecting the money from the
public, they decided that they would issue such security as
should not let the company undergo any fixed financial
burden. Also, they wished to have the capital from such a
source as should enable the company to keep the capital for
a long time. To collect the capital Suhasini and her friends
issued a prospectus. Through it, they told the public that in
the coming years, the company expected to earn a big profit
30 and that the price of its shares would be very high. As a
result, investors would be able to earn extra profit. In the
prospectus, it was also said that the company would
organize its meetings from time to time and that the
investors would be invited to these meetings. They would
have the right to cast their votes in these meetings. The
company collected money from the public and the
4
company's business started. The company started earning
more profit than what had been promised to the investors.
i. Identify and explain the type of shares issued by
'Trimurti Limited.'
ii. Quoting the relevant lines write about the two
advantages each to the investors and to the company
from the shares identified in (i).
 Cafe Coffee Day (abbreviated as CCD) is an Indian cafe
chain owned by Coffee Day Global Limited, a subsidiary
of Coffee Day Enterprises Limited. There are around
1,600 outlets of CCD across India. All the outlets of CCD
are under the control of the head office
a. Identify the type of retail outlet being described in the
given case.

b. State five features of the type of retail outlet as

identified in part (a) of the question.
OR
31. 6
Several middlemen remain present between the producers
and consumers. Their presence causes an unnecessary
increase in the prices of goods. Some consumers of a locality
resolved to free themselves from the clutches of the
middlemen. They think that the profit which goes to the
middlemen should come to them.
You suggest to him what kind of business they should
begin. All these people
know nothing about business. Therefore, tell them about
the demerits or limitations of business also.
“Prakash Ltd” is a company manufacturing Electric
devices. The company’s financial manager Mr. Sherlock, in
order to fulfil the long-term financial need, is on the lookout
for such a financial source, on which tax advantage may be
available. Advise him about the financial source which
32.
should fulfil his need. Also explain its merits & demerit.
OR

Yamini bought three hundred 10% preference shares of

ABC Ltd. in the year 2016. The face value of each share is
6
Rs. 100. She didn't receive any dividend on them during
 2016 due to insufficient profits of the company. In the
year 2017, the company made surplus profits. Calculate the
amount of dividend payable to her in the year 2017
assuming that she is holding:
a. Cumulative Preference Shares

c. Non-Cumulative Preference Shares

33 Define Company? Discuss five merits of the Company. 6
Danush visited a new restaurant 'Darbaar' with his
parents. They all liked the food served in the restaurant.
After a week Danush took his friends to 'Darbaar' and
placed an order for the same dishes that he had liked
during his previous visit. But to his surprise, he found that

34 the taste of the food was not as good as it was during his
previous visit. As a result, he felt very disappointed.
In the context of the above case, answer the following
6
questions:

a. Identify the feature of services being discussed above.

Explain briefly three other features of services.

 SAMPLE PAPER – 3

Q.No QUESTIONS Marks

Earning profit is considered to be an essential objective of

every business because:
a)It is an important source of finance for meeting expansion
1 needs of business. 1
b) It indicates that the business is being run efficiently.
c) It helps to build up the goodwill of the business.
d)All of the above.
Which of the following is true about statutory corporations?
a) Statutory corporations are subject to the same accounting
and audit procedure as are applicable to government
departments.
2 b) Statutory enterprises are funded directly by the 1
government treasury.
c) Statutory corporations are public enterprises that come
into existence by a Special Act of the Parliament.
d) The employees of statutory enterprises are civil servants.
When a property is insured by more than one insurance
(i.e. in case of multiple insurance), the insurers are to share
losses in what proportion?
3 1
a) Ratio of premiums received
b) Ratio of duration of insurance
c) Ratio of amount insured d) Equal Ratio
There is a full guarantee by the issuing bank branch about
its payment to the payee. So, there is no risk of getting
4 1
dishonoured.
a)Bank Draft b) Cheque c) Both(a) & (b) d) None of these
 Today, customers can also make use of call centers set up
by companies to make toll free calls to make queries and
lodge complaints round the clock at no extra cost to them.
5 1
Which variants of e-commerce is highlighted above.
a) B2B Commerce c) B2C Commerce
b) Intra-B Commerce d) C2C Commerce
Which of the following is not social responsibility of
business towards Shareholders.
a) To provide fair return on their capital investment.
b) To supply right quality of goods at reasonable prices.
6 1
c) To provide information regarding schemes of future
growth.
d) To provide accurate information about working of the
company.
From the following picture, identify the hindrance of
commerce highlighted:

7 1

a) Hindrance of Risk b) Hindrance of Finance

b) Hindrance of Place d) Hindrance of Time
“Management of an enterprise should provide opportunities
for meaningful work. It should try to create the right kind of
working conditions.” The given statement highlights the
8 1
social responsibility of business towards the .
a) Shareholders or owners b) workers
Consumers d) government and community
 Which of the following is not a characteristic of a
cooperative society.
a) Membership is open to all, irrespective of their religion,
caste, and gender.
b) The society can enter into contracts and hold property in
9 1
its name, sue and be sued by others.
c) In a cooperative society, the power to take decisions
lies in the hands of all the members of society.
d) The cooperative society through its purpose lays
emphasis on the values of mutual help and welfare

This application involves online trading of securities and

10 other financial instruments. 1
a) e-bidding b) e-communication c) e-delivery d) e-trading

Match the columns and choose the correct alternative:

COLUMN - I COLUMN - II
A. The name clause i) 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.
11 B. Objects clause ii) This clause specifies the
maximum capital which the
company will be authorized
to raise through the issue of
shares.
C. Liability clause iii) This is the most
important clause of the
memorandum. It defines the
purpose for which the
 company is formed.
D. Capital clause iv) This clause limits the
liability of the members to
the amount unpaid on the
shares owned by them.
a) A-i, B-iv, C-iii, D-ii c) A-ii, B-iii, C-iv, D-I
b) A-i, B-iii, C-iv, D-ii d) A-iii, B-i, C-iv, D-ii
Prabhat and Rishi are doing separate business of installing
Centralised Air Conditioning units in Mumbai. They enter
into a partnership contract to install Centralised AC unit in
12 a hotel in Shirdi. Identify the type of partnership being 1
highlighted in the given case.
a) Partnership at will b) Particular Partnership
b)General Partnership d) Limited Partnership
Debenture is a source of raising ....... finance
13 1
a) Long term b) Medium term c) Short term d)None
Read the following text and answer Q.14-16on the basis of
the same: Paras Manek is a successful businessman who
is engaged in manufacturing auto spare parts. The
products manufactured by his business enterprise Paras
Manek Ltd. are sold not only in India, but also exported to
various countries such as Singapore, Switzerland, China,
North Korea, etc. Trudy Ltd., a Russian company wants to
import auto spare parts from Paras Manek Ltd. Paras
Manek Ltd. has received an enquiry regarding the goods
and trade. Paras Manek Ltd. has replied to it in the form of
a quotation. Finding it favorable, Trudy Ltd. Has placed an
order containing description of goods, price and other
instructions, etc. But before exporting the goods it has to
fulfill certain legal formalities like procuring export license
and preparing the documents related to goods, shipment,
 and payment.
but also exported to various countries such as Singapore,
Switzerland, China, North Korea, etc."
14 Identify the type of business discussed above. 1
a) Domestic Business b) International Business
c) Both (a) and (b) d) Neither (a) nor (b)
In case of export, a buyer sends an enquiry to exporter to
seek information about:
15 1
a) Availability of goods c) Price of goods
b) Terms and conditions of trade d) All of these
Paras Manek Ltd. has replied to it in the form of a
quotation." Identify the document stated here.
16 1
a) Proforma Invoice b) Indent
c) Letter of Credit d) Enquiry

Retained Earnings are also known as:

17 a) Capital b) Ploughing back of profit 1
c) Surplus profit d) Gross profit

Who is the Chairperson of GST Councilors.

18 a) Prime Minister b) President 1
c) Finance Minister d) none of the above

Buying round the clock is possible at:

19 a)Retail Shop b) Vending machine 1
c) Departmental Store d) none of the above

Shops having same Interior exterior and sell at uniform price

20 are called: 1
Departmental store b) Chain Store c) Both (a) & (b) d) None

21 Explain any two auxiliaries to trade. 3

 Manan and ketan decide to start a partnership business of
manufacturing computer keyboards. Manan is of the view
that they should have a written agreement and they should
also register their partnership firm. However, Ketan wants
to have a verbal agreement. Manan explained the
consequences of non- registration to Ketan, after which
Ketan agreed it. State the consequences of non-
registration of a firm which were explained by Manan to
Ketan.
22 3
OR
Climax India Private Limited was formed as a Private
Company by a group of five friends. Their business has
grown considerably over the years. Now, they want to
expand their business and for this, they need more funds.
They are planning to convert their company into a public
company and raise more funds through issue of shares.
Mention any three privileges that the company will have to
forgo as a private company after conversion.
A group of people in a locality of Delhi used to go for a walk
in the morning. After the walk, they would often sit
together and discuss the subjects like politics,
demonetization, elections, market prices of different
goods etc. There were about fifty persons in this group.
One day, instead of other subjects, their focus of discussion
23 was ‘Market Prices of Different Goods’. During the 3
discussion, the emphasis laid on the point was that goods
become very costly by the time they reach the consumers
after getting transported from the producers.
Consequently, everyone's budget is getting disturbed. To
get rid of this problem some people suggested that they
should join together to form a society. The society would
 sell the goods to all the members as per their requirements
after buying them in a large quantity directly from the
producers. This suggestion was appreciated by them. They
all became members of the society and encouraged other
people also to become its members. In no time, 100
members assembled and the society was formed. The idea
of forming the society immediately proved to be successful.
Now their budget became balanced. A special characteristic
of this society was that apart from its members it was also
selling goods to the other people of the society at cheaper
rates. All of them were very happy with the formation of
the society.
a) Identify and explain the type of cooperative society
formed by them.
b) Under which act, the society must have been formed.
c) What is the liability of the members of the society so
formed.
Govind is a manufacturer of readymade kid’s garments. He
sells his products through various dealers across the
country. However, his sales are decreasing over the years.
Recently, his wife gifted him a jacket, which she had
ordered through Myntra (an Online Shopping site for
fashion and lifestyle). This gave Govind an idea to start
selling his products online. State any three benefits that
24 3
Govind can get through e- business.
OR
Unique enterprise is dealing in auto spare parts. With the
expansion in business the enterprise found that the
decisions are delayed and level of coordination is coming
down. The CEO of the company called for a meeting of all
managers. Ayush, a newly appointed manager suggested
 that company should have its own internet so that all the
employees can interact and pass important information to
each other through internet. Even short meeting of
different departments can be conducted through Video
conferencing to take fast action. The CEO liked the idea
and installed an internet connection for connecting all the
employee on line.
a) Which type of e- commerce is suggested by Mr. Ayush?
Explain.
b) Also, explain types of e-commerce which are not
mentioned in above para.
The Government planned to begin a Road Project. The
Government needed management specialists and financial
help to complete it. The Government contacted the private
sector to fulfill this requirement. Now, this project will be
completed jointly by both the public and private sector.
25 4
a)Identify the form of enterprise.
b) Explain any three features of such enterprise.
OR
Why Multi-National Corporations (MNCs) are in a position
to exercise massive control on the world economy?
Differentiate between Departmental stores and Chain
stores on any four bases.
26 4
OR
What are the services offered by retailers to consumers?
Explain the role of small business in India with emphasis
27 4
on the rural basis.

28 Explain first four steps involved in Export procedure. 4

 ABC Ltd. is not having good liquidity position. It has
invested in long term investment projects and will get
29 smooth cash flow after five years. It is not in a position to 4
bear risk of fixed burden of paying interest. Suggest which
source of finance is suitable for this company.
The government of India launched a program on May,
1978, with special stress on the development of small tiny
and cottage and village industries by providing integrated
administrative support in the area. To achieve this objective
30 4
an agency was set up at district level.
(a) Write down the name of that agency.
(b) Discuss the functions of the agency highlighted in the
statement.
Saurabh has taken fire insurance policy of Rs.9,00,000 for
his factory. Due to fire, he suffered a loss of Rs.6,00,000. He
claimed the loss from the insurance company and he gets
the compensation within a month.
Goods that were lost by fire were sold for Rs.70,000.
Saurabh wants to keep this money with himself, while the
insurance company claims that Rs.70,000 should be handed
over to the company.
a) Identify and state the principle of insurance which is
31 6
applicable in the given case.
b) Also, explain the Principle of Insurable Interest and
Indemnity with suitable example.
OR
Ankit’s warehouse was covered by a Fire Insurance Policy of
Rs.10,00,000. Two years back, his warehouse caught fire.
Ankit immediately called up the nearest fire station and
started removing the goods from the warehouse in order to
save them from fire. He took all reasonable steps to
 minimize the loss or damage. As a result, the actual loss by
fire to him was Rs.3,00,000, which could have gone up to
Rs.7,00,000, if he had not acted as a prudent person. After
scrutiny of the loss, the insurance company handed over the
cheque of Rs.3,00,000 to Ankit.
a) Identify and state the Principle of Insurance which was

followed by Ankit in the given case.

Also, explain the Principle of Proximate Cause and
Contribution.
Surya company, an LED lights manufacturing company has
good growth prospects. The owners of the company are
planning to expand their business. For this, the company
needs additional funds. The finance manager reports that
the company is not in a position to bear extra burden of
paying any fixed financial charges like interest or dividend.
32 They do not want to bear any flotation costs even. Also, the 6
equity shareholders insist not to issue further shares as
there is risk of dilution of control.
I. Suggest the source of finance most suitable for the
company.
II. (ii) Enumerate any three merits and two demerits of the
source of finance identified in part (i).
“After the company is incorporated, the next stage for the
public company is to raise the necessary capital”. In order to
33 raise capital, a public company has to follow some 6
procedure. Discuss the procedure to be followed by the
company.
Raj has recently completed his MBA in international
business from IIM-A. He is now planning to start his own
34 6
international business. His father advised him to take into
consideration the benefits of international business, before
investing huge money.
Suggest any four benefits of international business to Raj.
OR
Explain the meaning of the following documents used in
connection with import transactions.
(i) Trade enquiry (ii) Import license
(iii) Shipment advice (iv) Import general manifest
 SAMLPE PAPER – 4

Q.NO QUESTIONS Marks

Which of the following cannot be classified as an objective of
1 business. 1
a) Investment b) Productivity c) Innovation d) Profit earning
Business risk is not likely to arise due to
2 a) Changes in government policy b) Good management 1
c) Employee dishonesty d) Power failure
Provision of residential accommodation to the members at
reasonable rates is the objective of
3 1
a) Producer’s cooperative c) Consumer’s objective
b) Housing cooperative d) Credit cooperative
A partner whose association with the firm is unknown to
the general public is called
4 1
a) Active partner c) Sleeping partner
b) Nominal partner d) Secret partner
A government company is any company in which the paid-up
5 capital held by the government is not less than 1
(a) 49 percent b) 51 percent c) 50 percent d) 25 percent
Which of the following types of organisations has the
capability of expansion of market territory and operates
6 1
through a network of subsidiaries, branches and affiliates?
(a) MOFA b) MNC c) Public Sector d) Private Sector
Which of the following is not applicable in Life Insurance
contract.
7 1
(a) Conditional contract (b) Unilateral contract
(c) Indemnity contract (d) None of the above
8 CWC stands for 1
 (a) Central Water Commission
(b) Central Warehousing Commission
(c) Central Warehousing Corporation
(d) Central Water Corporation
The payment mechanism typical to e-business
9 (a) Cash on delivery (CoD) (b) Cheques 1
(c) Credit and Debit Cards (d) E-cash
It is not an application of e-business:
10 (a) Online bidding (b) Online procurement 1
(c) Online trading (d) Contract R and D
Which of the following can explain the need for pollution
control.
11 1
(a) Cost savings (b) Reduced risk of liability
(c) Reduction of health hazards (d) All of them
Which of the following is capable of doing maximum good to
society.
12 1
(a) Business success (b) Laws and regulations
(c) Ethics (d) Professional management
Public deposits are the deposits that are raised directly from
13 (a) The public (b) The directors 1
(c) The auditors (d) The owners
Debentures represent
(a) Fixed capital of the company
14 (b) Permanent capital of the company 1
(c) Fluctuating capital of the company
(d) Loan capital of the company
15 Give full form of WTO. 1

16 Tell (any one) parameter used to measure the size of 1

 business?

17 Tell the categories of internal trade. 1

18 Give an example of fixed shop. 1

19 Name any two documents regarding import export procedure. 1

20 What is international trade. 1

21 State the different types of economic activities. 3

A person gets his stock of goods insured, but he hides the
fact that the electricity board has issued him statutory
warning letter to get his factory’s wiring changed later on,
the factory catches fire due to short circuit. Can he claim
22 3
compensation? State the name of “Principle”.
OR
Anju has taken from Avi against the security of the factory.
Can Avi take a fire insurance policy of that factory. Why.
State any three importance of NSIC.
23 OR 3
Describe the role of small business in rural India.
How does market information provided by wholesalers
24 3
benefit the manufacturers.
If registration is optional, why do partnership firms willingly
25 go through this legal formality and get themselves registered. 4
Explain.
Why is the government company form of organization
26 4
preferred to other types in the public sector.
27 4
What preferential rights are enjoyed by preference
28 4
shareholders. Explain.
 OR
Explain the importance of finance for running the business
smoothly.
Explain the different types of retail trade.
29 OR 4
What are merits and demerits of large retailers (two each)
Describe the benefits of international trade to the business
30 4
firm.
State the important privileges available to a private
company.
31 OR 6
What do you mean by incorporation of a company? What are
the steps involved in incorporation of a company?
32 Build up arguments for social responsibilities of a business. 6
Discuss the sources from which a large industrial enterprise
can raise capital for financing modernization and
33 expansion. 6
OR
Differentiate between owner’s fund and borrowed fund.
34 Explain the objectives of DICs. 6