STONE RIDGE INTERNATIONAL SCHOOL

RUDRAPUR (U.S.Nagar) U.K

ECONOMICS (030)
CLASS –XII
SET – A

Max. Time: 1:30 Hours Max. Marks: 40

General Instructions:
1. Please read the instructions carefully.
2. This Question Paper consists of 17 questions.
3. Question no. 1 to 10, 1 marks each
4. Question no. 11 and 12, 3 marks each.
5. Question no.13 to 15, 4 marks.
6. Question no. 16 and 17, 6 marks.
1. Identify, which of the following indicates the Indian economy before the advent of British rule in India.
(a) Indian Economy was Independent, self-reliant and prosperous economy.
(b) Indian Economy was semi-feudal and depleted economy.
(c) Restrictive policies were adopted by Indian government to promote exports.
(d) Introduction of Import Substitution policy.
2. Empowered government to issue Industrial licenses as per Industrial Policy Resolution 1956.
(a) Industrial Policy Resolution Act, 1948
(b) Industrial Licensing Act, 1948
(c) Industries Development and Regulation Act, 1951
(d) Industries Reconstruction Act, 1948
OR
First time India adopted High Yielding Variety Programme (HYV) in the year (Fill in the blank with the correct alternative)
(a) 1947 (b) 1991
(c) 1951 (d) 1966
3. _________________ and are the two reforms out of the Reforms introduced in 1978 in China, which resulted in rapid
Industrial growth.
I. special economic zones were setup
II. Mixed economic system adopted
III. Dual pricing
IV. GLF campaign initiated
Alternatives:
(a) I and II (c) III and IV
(b) I and III (d) I and IV
OR
Post-cold war, nations started forming various regional and global economic groupings such as _________.
(Choose the correct alternative).
(a) SAARC (b) H-20
(c) Asian union (d) KETO Alliance
4. Identify which of the following is a source of institutional credit in the rural areas of India.
(a) Commission agents (b) Traders Union
(c) Land development banks (d) Moneylenders
5. From the set of the development indicators given in column I and corresponding facts given in Column II, choose the
correct pair of statement:
COLUMN I COLUMN II
(i) Liberty Indicator A. Indicates performance of economic reforms
(ii) Infant mortality Rate B. Death of infants before reaching 1 Year of age
. per 1000 live births in year
 (iii) Human development Index C. Studies the growth of nation’s economic
development
(iv) Maternal Mortality rate D. Indicates the number of female living in a nation
Alternatives:
(a) (i) – A (c) (iii) - C
(b) (ii) B (d) (iv) - D
6. Read the following statements carefully.
Statement 1: Health expenditure is an important determinant of the health status and economic development of the nation.
Statement 2: Health expenditure can result in better provision of health opportunities, which can strengthen human capital
and improve productivity.
In the light of the given statements, choose the correct alternative:
(a) Statement 1 is true and statement 2 is false
(b) Statement 1 is false and statement 2 is true
(c) Both statements 1 and 2 are true
(d) Both statements 1 and 2 are false
7. Read the following statements carefully.
Statement 1: During pre-reform period both India and China provided efficient social infrastructure which brought positive
results in human development indicators.
Statement 2: Both India and China are under compulsion to introduce reforms to counter the adverse situation of the
economy by World bank and IMF.
In the light of the given statements, choose the correct alternative:
(a) Statement 1 is true and statement 2 is false
(b) Statement 1 is false and statement 2 is true
(c) Both statements 1 and 2 are true
(d) Both statements 1 and 2 are false
8. _____________is not a cause for Global warming.
(a) Increased cattle production
(b) Deforestation
(c) Resource extraction
(d) Burning of coal
OR
__________________is the strategy to achieve Sustainable Development.
(a) Desertification
(Choose the correct alternative)
(c) Use of thermal power
(b) Judicious use of electricity
(d) Higher dependence on fossil fuels
9. Read the following statement:
Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): The level of educated unemployment in India increases with higher education.
Reason (R): Overpopulation and outdated Curriculum has been at the threshold of educated unemployment in India
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
10. Read the following statement:
Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): In the late 1970s, China's population growth rate had sharply declined.
Reason (R): One child policy and better health services attributed to the low growth of population in China.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
11. Interpret the given picture on account of current environmental challenges.
12. Defend or refute the following statement with valid explanation: In India, seasonal unemployment is predominantly
associated with agriculture."
OR
Critically analyse the need of rural credit for the growth of rural economy in order to realise higher productivity in
agriculture sector.
13. Compare and contrast India's and China's sectoral contribution towards GDP in 2003. Give the indications.
Sectors Contribution to GDP tin) (2003) .
India China
Primary (Agriculture) 23 15

Secondary (Industry) 26 53

Tertiary (Service) 51 32

14. (a) Name any one Navaratana company.

(b) 'Small Scale Industries are the actual wheels that keep the economy of any country running.' Explain the need of SSIs
during post Independence in the light of given statement.
OR
Those public sector undertakings which are making profits should be privatised. Do you agree with this
view? Why?
15. State whether the following statements are true/false with valid arguments:

(a) There is a upward trend in inequality world-wide with arise in the average education level.
(b) Developing countries can struggle to develop because their best-skilled labour leaves the economy.
16. (a) Explain the importance of self help groups (SHGS) in rural areas.
(b) How are credit significant for the progress of agriculture?
(c) Enlist any two benefits of organic farming.

OR
(a) "Indian government realized the importance of education as a way to develop the society and nation, so taken possible
steps to promote education in nation since independence." Give a short account of steps taken by Indian government since
Independence in the light of above statement.
(b) 'Regular salaried employees more in urban areas than in rural areas.' Defend or refute the given statement with valid
reason.
16. Read the following text carefully and answer the given questions on the basis of the same and common understanding:
Economists have come up with a number of definitions since the time planning entered the domain of economics.
However, a lot of them have agreed that the most significant was formulated by HD Dickinson. According to him,
economic planning is "the making of major economic decisions - what and how much is to be produced and to whom it is
to be allocated by the conscious decision a determinate authority, on the basis of a comprehensive survey of the economic
system as a whole".
After it was introduced by the erstwhile Soviet Union, many countries started adopting the method of economic planning at
different levels to achieve faster growth. Economic planning in India is undertaken by the Planning Commission, which
was replaced by NITI Aayog on January 1, 2015. NITI (National Institution for Transforming India) Aayog was established
with the objective of achieving sustainable development goals through cooperative federalism. NITI Aayog is basically a
think-tank or an advisory body. The Planning Commission had the power to impose policies on States and for the projects
approved by the Planning Commission. The powers for allocation of funds have not been given to the NIII Aayog. The
socio-economic condition of India after Independence was such that it was impossible for either public or private sector to
carry on the responsibility of development solely. Planning was foremost requirement to deal with the problems of 100 per
capita income, major portion of population engaged in primary sector, high birth rate, grave unemployment and low capital
formation, unequal distribution of wealth, illiteracy, lack of technical knowledge, poor quality of human resources etc. so it
became important to adopt an economic system which could bring about growth conducive or in relation to the prevailing
environment.
The community of feudal lords, land owners, merchants, financiers and industrialists did not have the capability of
discharging the essential task of development. The private sector was not even so strong to carry on the responsibility of
development because it required heavy investment to produce consumer goods on large scale. Also, even in the British
period the key sectors of the economy were state owned. Thus, mixed economy became the most appropriate model to be
adopted.
In a country like India where development was yet to start, the state have more responsibility as it is expected to create the
conditions for development. The Indian planners also had limitations of public sector in their mind and the strengths of
private sector.
Hence, neither the public sector was made all embracing nor the private sector was reduced to non-significance. Thus, to
protect the weaker section of society but not at the cost of the capable ones and to create conditions of economic and social
development, a mixed economic model was required where state could play a major guiding role and private enterprise act
as important means to achieve the developmental goals.
(a) Why did India adopt a mixed economy model for the attainment of social and economic development?
(b) Justify the following statement with valid explanation:
'To oversee the country's economic and social development, in 1950, the Government set up a Planning Commission and
then later Planning Commission was replaced by a new institution - NITI Aayog on January 1, 2015 to help, design and
execute suitable policies for economic'
 STONE RIDGE INTERNATIONAL SCHOOL
RUDRAPUR (U.S.Nagar) U.K
ECONOMICS (030)
CLASS –XII
SET – B

Max. Time: 1:30 Hours Max. Marks: 40

General Instructions:
1. Please read the instructions carefully.
2. This Question Paper consists of 17 questions.
3. Question no. 1 to 10, 1 marks each
4. Question no. 11 and 12, 3 marks each.
5. Question no.13 to 15, 4 marks.
6. Question no. 16 and 17, 6 marks.

1. Which of the following was the main reason for decline in the handicrafts sector during the British
rule in India? (1)
a) New patterns of the demand for handicrafts
b) The tariff policy followed by the British
c) The competition in the sector due to man-made machines
d) All of the above
2……………….. is not a measure to improve agriculture marketing. (1)
a) Regulation of markets
b) Cooperative marketing
c) Development of physical infrastructure
d) None of the above
3. Assertion: In NEP, greater reliance was placed on market forces
Reason: Excessive government control had given rise to corruption, undue delays and inefficiency (1)
Choose the correct alternative in the light of above two statements
a) Assertion and reason are correct and reason is correct explanation of assertion
b Assertion and reason are correct but reason is not correct explanation of Assertion
c) Assertion is false but reason is true
d) Assertion is correct but reason is wrong

4. Which of the following is not a benefit of demonetisation in India?(1)

1) Control over corruption
2) Counterfeiting use of high denomination notes for illegal activities
3) Control on black money
4) More demanding customers
Options
a) Only 4
b) Only 1,2,3
c) All 1,2,3,4
d) None of the above
5. Statement l The HDI rank of China is higher than that of India and Pakistan.
Statement II The percentage of people living below poverty line in descending order of their
magnitude is -Pakistan, India and China. (1)
 Alternatives
a) Both the statements are true
b) Both the statements are false
c) Statement I is true and statement II is false.
d) Statement I is false and statement II It’s true.
6. Identify the true statement about undernourished population in the three countries.(India, China and
Pakistan.) (1)
i) The percentage of population, which is not able to obtain adequate diet is called
undernourished population
ii) China has lowest undernourished population among the three
iii) Undernourished population is much higher in Pakistan than India .
Codes
a) (i) and (ii)
b) (ii) and (iii)
c) (i)and (iii)
d) (i),(ii)and (iii)

7. The nationalisation of capital goods industries took place in………… in 1970s. (1)
a) India
b) Pakistan
c) China
d) None of these
8. The problem of ozone layer depletion is caused by high level of………….and……… compounds in the
stratosphere.(1)
a) Methane and chlorine
b) Chlorine and bromine
c) Bromine and carbon dioxide
d) Carbon dioxide and methane
9. Assertion (A) many public sector, undertaking incurred huge losses due to operational inefficiencies.
Reason (R) Red-tapism was one of the reasons for continuation of such Enterprises.
Alternative
a) Both Assertion(A) and Reason (R)are true
b) Both assertion (A)and reason (R) false
c) Both assertion (A)and reason (R)are true and assertion(A) is the correct explanation of
reason (R).
d) Both Assertion(A) and reason(R)are true, but Assertion is not the correct explanation of
Reason.
10. Cooperative marketing societies have faced a downfall in the recently years. Identify which of the
following was not a reason behind its downfall ? (1)
a) lack of coordination between processing and marketing Societies.
b) Inefficient financial management
c) Inadequate coverage of all the members
d) Intervention of the government is most essential.

11. A software professional generates more income than a mason.Why? (3)

Or
The rate of woman participation in workforce of rural areas is greater than urban areas. Do you agree?Justify.
12. ”It is necessary to generate employment in the formal sector rather than in the informal sectors.” (3)
Support the given statement with valid explanation
13. Given figure represents 1 of the dire challenges facing Indian economy in the present era. Look at the
figure carefully and comment on the basis of your understanding.(4)
14. The following news report came in the article “ after five years of Demonetisation, black money is
very much around”, published by Money control on 9 November 2021.
“The Narendra Modi government expected Demonetisation to extinguish at least Rs.3 to 4 lakh crore of black
money. However, RBI data show that 99% of the money that was invalidated came into the banking
system. Meanwhile fresh seizures of black money continue.”
Having understood that black money is still very much around, can you explain what were the motives of the
Modi government behind Demonetisation as a tool to seize black money? (4)

15. Instead, the following statements are true or falls with appropriate explanation.
i) There is an inherent need for developing countries to engage in regional and economic
grouping. (2)
ii) People prefer to have male child in many developing countries including India, Pakistan, and
China. (2)
Or
‘China’s rabbit industrial growth can traced back to its reforms in 1978’. Support the given statement with
valid explanation. (4)
16. i) “Non-institutional sources are traditional sources of agricultural credit and or not attached to
any formal institution”.
In the light of the given statement, explain why is it being considered necessary to replace the private money
lenders by institutional sources of credit? (3)
ii) “Unemployment, and under employment or to distinct concept”.
Explain how is under employment different from unemployment and what are some key methods employed to
measure unemployment in India. (3)
Or
i) “Economists believe that India should expand at least 6% of its GDP on education for achieving desired
result.” justify the statement with valid reason.
ii) mention some obstacles that hinder the mechanism of agricultural marketing and create a need for
the government to interfere in this sector.
17. Read the given context regarding Indian economy and answer the given questions on the basis of the
same and common understanding.
For the past few decades, technological advances, have not only permitted an easier, communication and
interaction among countries, but also an increase in the economic and cultural exchanges across national
boundaries.
All of these factors put together or called globalisation. Globalisation has improved the development of many
countries, including India, by creating economic interdependence among them. In fact, globalisation has been
very beneficial to India and hence has improved the country‘s economic development.
Openness to foreign trade and investment explains the rapid growth of India. Since the Indian government
adopted the economic liberalisation policies in the 1990s, the employment situation of India has improved
significantly. According to the international labour organisation, the number of Indians in the workforce will
increase by almost 80 million over the next decade. As many forms or attracted by the inexpensive labour cost of
the country, they therefore decide to establish their business abroad and higher workers from overseas. These
foreign firm need a wide variety of human labour, ranging from manufacturing jobs to high-technology position.
This means that globalisation reduces the unemployment rate in India by giving the opportunity to people from
all social classes to earn an income and to contribute to the country’s economy. The income distribution within
the country is also more equal because more people have the possibility to be employed. The substantial
reduction of unemployment in India has decreased its poverty. Therefore, a growing urban middle-class has
started to emerge in the country. After meeting their basic needs, an increasing number of people in India can
now afford to buy better consumer goods and services due to their stable revenue. In 2005, the middle class
accounted for only 5% of the total Indian population.
However, the national Council for applied economic research forecast that this middle class will rise to 15% in
2015 and to over 40% in 2025. The emergence of the larger middle class signifies that people who were once
poor or becoming richer and thus have a superior living standard. As more people in Indian society move to the
middle class, the population of the very poor is reduced and thus the discrepancy between rich and poor is
lessened.
In order to maintain the economic growth of the country, the Indian government has to ensure that there are
enough human resources in the labour force to replace the previous generation when it retired. The Indian
government is currently seeking to expand its higher education system, and the Ministry of human resource
development recently announced that it has the intention to build 14 new comprehensive universities of world
class structure. The Indian government knows that an educated workforce directly impacts the country’s
economic growth.Thus, globalisation has fostered the quality of the educational system in India, which benefits
the country.
On the basis of above given paragraph answer the following questions:-
i)” Globalisation has contributed positively towards the Indian economy”. Do you agree with the
given statement? Explain. (2)
ii) Discuss economic reforms in India in the light of social justice and welfare. (4)
 STONE RIDGE INTERNATIONAL SCHOOL
RUDRAPUR (U.S.Nagar) U.K
ECONOMICS (030)
CLASS –XI
SET – A
Max. Time: 1:30 Hours Max. Marks: 40
General Instructions:
1. Please read the instructions carefully.
2. This Question Paper consists of 17 questions.
3. Question no. 1 to 10, 1 marks each
4. Question no. 11 and 12, 3 marks each.
5. Question no.13 to 15, 4 marks.
6. Question no. 16 and 17, 6 marks.

1. Normative economics deals with:

a) Facts b) opinions c) both a) and b) d) none of these
2. The means of production are under the control of the state in which type of economy?
a) Capitalist economy b) mixed economy c) socialist economy d) Market economy
3. Which of the following is not concerned with the problem of choice ?
a) Excessive income b) Alternative use of resources c) Unlimited wants d) Limited
resources
4. Scarcity of resources exists:
a) At the micro level b) at the macro level c) micro level as well as macro level d)
None of these
5. Consumer is sovereign under:
a) Capitalist economy b) Centrally planned economy c) Controlled economy d) Mixed
economy
6. Statement 1: Positive statements are verifiable for truth.
Statement 2: Normative statements lead to controversies and debates.
Alternatives:
a) Both statement are true b) Both statement are false
c) Statement 1 is true and statement 2 is false
d) Statement 2 is true and statement 1 is false
7. Statement 1: In a free economy, the consumer buys goods according to his choice.
Statement 2: In a mixed economy, the consumer is not sovereign.
Alternatives:
a) Both statement are true b) Both statement are false
c) Statement 1 is true and statement 2 is false
d) Statement 2 is true and statement 1 is false

8. Statement 1: Macroeconomics is also know as “Theory of price”

 Statement 2: India’s goal of 30% EV Penetration by 2030 and Infrastructural improvements is
an example of microeconomics.
Alternatives:
a) Both statement are true b) Both statement are false
c) Statement 1 is true and statement 2 is false
d) Statement 2 is true and statement 1 is false

9. Assertion: Choice is the process of selection from available limited alternatives.

Reason: resources are scare and have alternative uses.
Alternative
a) Both Assertion (A) and Reason (R)are true
b) Both assertion (A) and reason (R) false
c) Both assertion (A) and reason (R) are true and assertion (A) is the correct explanation of
reason (R).
d) Both Assertion (A) and reason(R) are true, but Assertion is not the correct explanation of
Reason.

10. Assertion: Positive economics deals with economic issues related to past, present and future.
Reason: Positive economics does not involve value judgement.
Alternative
a) Both Assertion (A) and Reason (R) are true
b) Both assertion (A) and reason (R) false
c) Both assertion (A) and reason (R) are true and assertion (A) is the correct explanation of
reason (R).
d) Both Assertion (A) and reason(R) are true, but Assertion is not the correct explanation of
Reason.

11. The government is considering a large investment in renewable energy. Some argue it’s
moral responsibility to reduce carbon emissions, while other worry about the economic cost”.
Categories the above situation under positive or normative economics. Further state the reason
for this categorization.
12. What is the slope of PPC? What does it show?
13. How to Produce is a complex problem for less developed countries like India. Explain how.
14. Once a consumer reaches the point of equilibrium he would like to change his allocation of
expenditure (to goods X and Y) even if price of one commodity changes. Do you agree?
15. Draw a PPC and indicates the following situation on the diagram:
i) Fuller and efficient utilization of resources
ii) Underutilization of resources
iii) Growth of resources
16. Explain the relationship between Total Utility and Marginal utility with the help of schedule
and diagram?
17. Explain the concepts of Positive and Normative economics with illustrations.
 STONE RIDGE INTERNATIONAL SCHOOL
RUDRAPUR (U.S.Nagar) U.K
ECONOMICS (030)
CLASS –XI
SET – B
Max. Time: 1:30 Hours Max. Marks: 40
General Instructions:
Please read the instructions carefully.
7. This Question Paper consists of 17 questions.
8. Question no. 1 to 10, 1 marks each
9. Question no. 11 and 12, 3 marks each.
10. Question no.13 to 15, 4 marks.
11. Question no. 16 and 17, 6 marks.
1. Assertion: IC slopes downward from left to right.
Reason: To maintain constant satisfaction under monotonic preferences more of one good
must be backed by less of the other.
Alternative
a) Both Assertion (A) and Reason (R) are true
b) Both assertion (A) and reason (R) false
c) Both assertion (A) and reason (R) are true and assertion (A) is the correct explanation of
reason (R).
d) Both Assertion (A) and reason(R) are true, but Assertion is not the correct explanation of
Reason.
2. Statement 1: IC is convex to the origin because MRS tends to rise as we move along the
curve, left to right.
Statement 2: A set of ICs drawn in a graph is called indifference set.
Alternatives:
a) Both statement are true b) Both statement are false
c) Statement 1 is true and statement 2 is false
d) Statement 2 is true and statement 1 is false
3. Budget line indicates:
a) Price ratio b) Income ratio c) cost ratio d) None of these
4. A set of ICs drawn in a graph is called:
a) Indifference Curve b) Indifference Map c) Budget line d) Budget set
5. The opportunity cost of 100 kg of rice produced on land which can also Produced 80 tonnes of
wheat is –
a) 100 kg of wheat b) 80 tonnes of wheat c) 8000 tonnes of wheat d) None of
these.
6. The shape of transformation curve is changed by:
a) Opportunity cost b) Total cost c) MOC d) none of these
7. Economics problems arises due to:
a) Limited resources b) scare resources c) alternative uses d) both b) and c)
8. Output of goods-X decreases by 500 units and output of Good-Y Increases by 500 units, when
some resources are shifted from the production of good-x to production of good-Y. The MOC is
–
a) 0.2 b) 0.75 c) 0.8 d) 1.0
9. When some resources are shifted from Use-1 to Use-2 (given technology), the marginal rate of
transformation :
a) Increases b) decreases c) remains constant d) is zero
10. Statement 1: The central problems of an economy are the same in all types of economies, be
it capitalist, socialist or mixed.
Statement 2: The way central problems are solved differs based on the type of economy.
Alternatives:
a) Both statement are true b) Both statement are false
c) Statement 1 is true and statement 2 is false
d) Statement 2 is true and statement 1 is false
11. The government is considering a large investment in renewable energy. Some argue it’s
moral responsibility to reduce carbon emissions, while other worry about the economic cost”.
Categories the above situation under positive or normative economics. Further state the reason
for this categorization.
12. What is the slope of PPC? What does it show?
13. How to Produce is a complex problem for less developed countries like India. Explain how.
14. Once a consumer reaches the point of equilibrium he would like to change his allocation of
expenditure (to goods X and Y) even if price of one commodity changes. Do you agree?
15. Draw a PPC and indicates the following situation on the diagram:
i) Fuller and efficient utilization of resources
ii) Underutilization of resources
iii) Growth of resources
16. Explain the relationship between Total Utility and Marginal utility with the help of schedule
and diagram?
17. Explain the concepts of Positive and Normative economics with illustrations.
 STONE RIDGE INTERNATIONAL SCHOOL
RUDRAPUR (U.S.Nagar) U.K
BUSINESS STUDIES (054)
CLASS –XI
SET – A

Max. Time: 1:30 Hours Max. Marks: 40

General Instructions:
7. Please read the instructions carefully.
8. This Question Paper consists of 17 questions.
9. Question no. 1 to 10, 1 marks each
10. Question no. 11 and 12, 3 marks each.
11. Question no.13 to 15, 4 marks.
12. Question no. 16 and 17, 6 marks.
Q. 1. A person who is actually not a partner but through his/her behaviour, conduct or Initiation allows other partners of the
business to represent him as their partner. (1)
(a) Nominal Partner (b) Partner by Estoppel
(c) Partner by holding out (d) Secret partner
Q. 2. The society aims to eliminate middlemen and improve competitive position of its members by securing a favourable
market for the products. [1]
(a) Consumer's Cooperative Societies
(b) Producer's Cooperative Societies
(c) Marketing Cooperative Societies
(d) Farmer's Cooperative Societies
Q. 3_____ is a type of business unit where a person is solely responsible for providing. the capital [1]
(a) Sole proprietorship
(b) Joint Hindu Family Business
(c) Partnership
(d) Cooperative societies
Q. 4. Which document is an invitation to general public? [1]
(a) MoA
(c) Prospectus
(b) AoA
(d) Certificate of incorporation
Q. 5. If karta dies then [1]
(a) Joint Hindu Family Business comes to an end.
(b) Remaining members elect new Karta.
(c) Next senior most member becomes karta.
(d) The business continues without karta.
Q 6. which of the following characteristics is related to employment ? [1]
(a) Teacher is working in school (b) Ram running own General store
(c) Doctor is running a clinic (d)None of these
Q 7. Which type of risk arise due to changes in fashion ? [1]
(a) Natural Risk (b) Market Risk (c) Manmade Risk (d) None of these
Q 8. Match the following items of Column A with the items given in column B [1]
Column A Column B
A. Natural cause (i) Change in government policy
B. human cause (ii) Famine
C. Econimic cause (iii) Theft
D. Physical Cause (iv) change in technology
(a) A - (6) B - (ii) C - (0) D - (Iv) (b) A - (i) B - (i) c - (lv) D –(iii)
(c) A - (6i) B - (i) C-(ii), D - (iv) (d) A-(vi) , B- (ii) , C-(iii), D – (i)
Q.9. H.K. Ltd. is such a company which is concerned with using materials, which have already been extracted at a primary
state. This company processes such materials to produce goods for final consumption or for further processing by other
industrial units. Identify the type of industry to which these companies are related.
[1]
(a) Primary Industry
(b) Secondary Industry
(c) Tertiary Industry
(d) None of the above
Q 10.If Mr. Rajeev sells his domestic sofa set at a profit, he will not be considered as a businessman. But if he sells sofa
sets regularly either through a shop or from his residence, he will be regarded as a businessman. Identify the characteristics
of business discussed above. [1]
(a) An economic activity
(b) Dealings in goods and services on a regular basis
(c) Sale or exchange of goods and services
(d) Profit earning

Q. 11. Give three points of difference between Partnership and sole properietor. [3]
Q. 12. Akriti, Manoj and Sonali were friends who started a partnership business. They did not get their firm registered as it
was optional. Soon, Manoj and Sonali started having conflicts. Manoj wants to approach a lawyer. How Lawyer would
guide them? [3]
Q. 13. Dishant and Dinesh joined the prestigious law university in Dehradun in the year 2010. During the course of study
they became good friends and they both realised that their common interest lies in the field of corporate law. After
completion of their degree they decided to start a firm of their own, namely 'D&D Law Firm' wherein both of them will be
co-owners dividing the profit and loss. After successfully running the firm for a year, they realised that there are certain
rights which are denied to their firm as it is not registered. Explain the consequences of non-registration of their firm.
[4]
Q. 14. Mention the upper and lower limits of membership of: [4]
(a) Joint Hindu Undivided Family
(b) A private limited company
(c) A consumer's cooperative society
(d) A public limited company listed under NSE
Q. 15. Differentiate Between Business, profession and employment. [4]
Q. 16. Akshat runs a well known departmental store in Gwalior. He procures different kinds of products from all over the
country through railways, roadways and airways. He also owns a godown to hold the stock. He has taken an Insurance
policy worth 5 crores for his business. Moreover, he has taken a loan of ₹5,00,000 from SBI bank in order to meet all short
term needs of business. He has also placed information about his store on hoardings. In the context of the above
information about Akshat's business, answer following questions:
[6]
(a) What are auxiliaries of trade?
(b) Identify the auxiliaries of trade that are being used by Akshat in his business by quoting lines from above paragraph.
(1) "He procures different kinds of products from all over the country through railways, roadways and airways
(ii) 'He also owns a godown to hold the stock".
(iii) 'He has taken an insurance policy worth ten crores for his business".
(iv) 'He has taken a loan of ₹5,00,000 from SBI bank in order to meet all short term needs of business'.
(v) He has also placed information about his store on hoardings
(c) Why should goods be insured?
Q. 17. Sneha after her course in designing started taking jobs for designing logo, wedding cards, pamphlets,
advertisements, etc. Her work became quite popular and she had continuous orders. She decided to have a separate office
with some staffs to help her. She was suggested by her father to have a business organization and run it properly.
(a) Her business was constantly growing and she was facing problems with handling all orders and finishing them on time.
Her friend Pooja, who was also a designer, proposed to join her as a business partner. Sneha was confused whether to
continue her business as a sole trader or convert it into a partnership firm. As a true friend of Sneha, you are required to
suggest the advantages and disadvantages of a partnership business. (two each)
(b) Sneha and Pooja decide to form a partnership firm and do the business together. Suggest them on the following issues
with proper reasons.
(1) What kind of liability will they have and how will it affect them?
(1) How is 'Particular Partnership' different from 'Partnership at Will'?
(ii) Is it necessary for them to have an agreement and register their firm? [6]
 STONE RIDGE INTERNATIONAL SCHOOL
RUDRAPUR ( U.S.Nagar) U.K
BUSINESS STUDIES (054)
CLASS –XI
SET – B

Max. Time: 1:30 Hours Max. Marks: 40

General Instructions:
13. Please read the instructions carefully.
14. This Question Paper consists of 17 questions.
15. Question no. 1 to 10, 1 marks each
16. Question no. 11 and 12, 3 marks each.
17. Question no.13 to 15, 4 marks.
18. Question no. 16 and 17, 6 marks.

Q 1. Stages in the formation of a Public Company are in the following order: [1]
(a) Promotion, commencement, incorporation, capital subscription
(b) Incorporation, capital subscription, commencement, promotion
(c) Capital subscription, promotion, Incorporation, commencement
(d) Promotion, incorporation, capital subscription, commencement
Q 2 Statement: The limited liability associated with the public limited company results from companies as legal entities
separate from their owns.
Statement II: The limited liability associated with the public limited company result from companies as Company can
borrow funds from banks easily. (1)
(a) Statement I is correct
(b) Statement. II is correct
(c) Statement and II both are correct
(d) Statement I and il both are incorrect
Q 3. Who is called Parent of Company? [1]
(a) Director
(b) Promoter
(c) Registrar
(d) Shareholder
Q 4. A sole proprietorship is a business where all of the following are true except: [1]
(a) The owner has complete control over decision making.
(b) Profits entirely belong to the owner.
(c) The proprietor is liable for losses to the extent of his or her personal assets.
(d) The proprietor can sell his share in business to raise fund.
Q 5. Who among the following can only be beneficiary of business and does not have unlimited liability? .
[1]

(a) Secret Partner

(b) Minor Partner
(c) Active Partner
(d) Sleeping Partner
Q 6. which of the following characteristics is related to employment ? [1]
(b) Teacher is working in school (b) Ram running own General store
(c) Doctor is running a clinic (d)None of these
Q 7. Which type of risk arise due to changes in fashion ? [1]
(b) Natural Risk (b) Market Risk (c) Manmade Risk (d) None of these
Q 8. Match the following items of Column A with the items given in column B [1]
 Column A Column B
A. Natural cause (i) Change in government policy
B. human cause (ii) Famine
C. Econimic cause (iii) Theft
D. Physical Cause (iv) change in technology

(a) A - (6) B - (ii) C - (0) D - (Iv) (b) A - (i) B - (i) c - (lv) D –(iii)
(c) A - (6i) B - (i) C-(ii), D - (iv) (d) A-(vi) , B- (ii) , C-(iii), D – (i)
Q.9. H.K. Ltd. is such a company which is concerned with using materials, which have already been extracted at a primary
state. This company processes such materials to produce goods for final consumption or for further processing by other
industrial units. Identify the type of industry to which these companies are related.
[1]
(a) Primary Industry
(b) Secondary Industry
(c) Tertiary Industry
(d) None of the above
Q 10.If Mr. Rajeev sells his domestic sofa set at a profit, he will not be considered as a businessman. But if he sells sofa
sets regularly either through a shop or from his residence, he will be regarded as a businessman. Identify the characteristics
of business discussed above. [1]
(a) An economic activity
(b) Dealings in goods and services on a regular basis
(c) Sale or exchange of goods and services
(d) Profit earning

Q11. Give Three points of difference between Patnership and company. [3]
Q 12. What do you mean by Mutual Agency in a partership? [3]
Q 13. Describe the meaning and three features of Joint Hindu Family [4]
Q 14. The business assets of a firm are worth ₹70,000 but the debts remain unpaid are worth 1,00,000. What course of
action can the creditors take in the following cases? [4]
Q. 15. Differentiate Between Business, profession and employment. [4]
16. Identify the following as traits of business, profession and employment:
(a) Hari sells mobile phones on behalf of his employer.
(b) It requires minimum academic and other qualifications.
(c) A hawker sells toys for children outside a function.
(d) Sanjay is an advocate of High Court.
(e) Dhruv is the manager of a Mobile Company
(f) A person repairs scooters on roadside. [6]
Q 10. Rajiv is the sole owner of a shirt manufacturing factory. He took loan of 30 lac from ain finance company for
expansion of his business. In beginning business was running well but later on he started facing losses and due to
continuous losses he was not able to repay the loan. After receiving many reminders from finance company, Rajiv planned
to close the business. He sold all his machines and other assets and collected 20 lac. He requested the finance Co. to settle
the accounts by taking 20 lac. The finance company refused and planned to file a case against him in court. In court, Mr.
Rajiv gave the argument that he has sold all his business assets and loan was taken by him for business and not for personal
use. So, finance company must settle the account by taking 20 lac. The court did not agree with the argument of Rajiv and
gave the decision in favour of finance company and ordered Rajiv to pay full loan amount by selling his personal asset.
(a) Name the form of business carried by Rajiv.
(b) State the feature of sole Proprietorship which is kept in mind by court while taking decision.
(c) Is Rajiv's argument of saying he and business are separate entity correct? [6]