Doon Valley Public School, Nalagarh Marks: 80

Annual Examination (Session 2023-24) Time: 03 hrs

Subject: Business Studies (054) Class: XI
Name:____________ SET A Roll no:____

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 questions together.

1. Every importer is required to secure the sanction of foreign exchange in order to make[1]
the payment. For obtaining such a sanction, to whom the importer has to make an
application from among the following:
a) Exchange Control Department of b) Any bank authorized by RBI to
RBI issue foreign exchange
c) DGFT d) EXIM

2. Which of the following comes under Modern Small Industries? [1]

a) Khadi b) Handicrafts
c) Coir d) Powerlooms

3. Indian economy consists of . [1]

a) only private business b) only government business
c) only Semi Government d) private and government owned business

4. On which basis fixed-shop retailers are classified into small shopkeepers and large [1]
retailers?
a) Size of their operations b) Type of ownership [1]
c) Place of business d) Merchandise handled

5. What is the maximum amount that can be invested in equipment by a Medium

enterprise engaged in rendering services according to Government of India? [1]
a) 5 crore rupees b) 2 crore rupees
c) 3 crore rupees d) 4 crore rupees

6. It is not an application of e-business: [1]

a) Online trading b) Online bidding
c) Contract R&D d) Online procurement

7. Which of the following is an example of Departmental undertakings? [1]

a) Air India b) Post and Telegraph Department
c) All of these d) Railway

8. The District Industries Centers Programme was launched on: [1]

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 a) September 1, 1978 b) July 1, 1978 c) May 1, 1978 d) 15 August 1978

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 9. Which of the following statements is incorrect regarding debentures? [1]
A. Interest paid on debentures is tax-deductible.
B. Debentures do not carry voting rights.
C. It preferred by investors who want fixed income at lesser risk.
D. Issue of debentures dilutes the control of equity shareholders on management.
a) Only C b) Only B
c) Only D d) Only A

10. Assertion (A): The size of a sole proprietorship business rarely grows much and generally remains
small. [1]
Reason (R): A sole trader is also not bound by law to publish a firm’s accounts.
a) Both A and R are correct and R is the correct explanation of A.
b) Both A and R are correct and R is not the correct explanation of A.
c) A is true R is false.
d) A is false R is true.

11. Small Scale Fixed retailers includes . [1]

a) hawkers b) general stores
c) pedlars d) cheap jacks

12. Which of the following statements is correct for wholesalers: [1]

a) They undertake additional activities.
b) They do not take the title of the goods and bear the business risks in their own name
c) They engage in buying and selling of goods
d) All of these.

13. Minimum number of members to form a public company is: [1]

a) 21 b) 5
c) 12 d) 7

14. NABARD was setup in . [1]

a) 1975 b) 1987
c) 1982 d) 1991

15. Choose the correct full form of CSR from the below given options:- [1]
a) Company Social Responsibility b) Corporate Shared
Responsibility
c) Corporate Societal d) Corporate Social
Responsibility Responsibility

16. Assertion (A): Life Insurance is not only a protection but is a sort of investment.
Reason (R): Certain sum is returnable to the insured either at the time of death or at the expiry
of a certain period. [1]
a) Both A and R are correct and R is the correct explanation of A.
b) Both A and R are correct and R is not the correct explanation of A.
c) A is true R is false.
d) A is false R is true.
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 17. Who among the following are the highest risk-takers? [1]
a) People practicing a profession b) People engaged in career employment
c) Entrepreneurs d) All of these

18. Among the following given activities, which one is not an economic activity: [1]
a) Trading in goods and services b) Social welfare
c) Manufacturing of goods for sale d) Transportation services

19. Exemption from paying taxes for 5 to 10 years is known as . [1]

a) Value Added Tax b) tax deduction
c) tax holiday d) TDS

20. What minimum percentage of the paid-up capital should be held by the government in a [1]
Government Company?
a) 49% b) 100%
c) 75% d) 51%

21. Shivam Enterprises is a leading manufacturer of Home Security Equipments and its
products enjoy a very good reputation in the Indian market. Encouraged by this, Kartik (owner
of the firm) is thinking of expanding the work to foreign territories also. Kartik wants to export
the security equipment to Europe. So, he consulted Abhay, one of his friends, who is actively
involved in the export and import of goods. Abhay told Kartik that the export of goods requires a
special ‘Procedure’. Abhay also explained the advantages and disadvantages of the International
business to Kartik. [3]
a. Discuss the procedure which is required to be followed by Kartik for the export of goods.(1)
b. Also, discuss the various advantages and disadvantages of the International business to
Kartik.(2)

22. List the major exports and imports in ancient India. [3]
OR
Which hindrance of commerce is highlighted in the following activities? (1/2 marks each)
i. It removes the geographical separation between producers and consumers.
ii. Warehousing facilitates holding of goods till they are required.
iii. Advertising informs the consumers about the goods and services available in the market.
iv. Trade provides an organized market where buyers and sellers can contact each other.
v. Banking and Financing Institutions provide necessary funds to carry on business activities.
vi. There exist a time gap between production and consumption of goods.
vii. Insurance protects the goods in case of damage due to theft, fire, accidents.

23. What do you mean by pavement traders? [3]

24. Equity Shares are known as Risk Capital. What is your view about it? [3]
OR
What are the advantages and disadvantages of preference shares?

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 25. Geeta Pustak Bhandar sells only religious books. But all kinds of books are available at 'Kapoor [4]
Pustak Bhandar'. Both of them are examples of Small Scale Retail Trade. Even then the nature
of their trades is different from each other. Identify the nature of the difference between the
trades of both of them and explain it.
OR
Write the disadvantages of departmental stores.

26. People misinterpret business as having only economic objectives. Make the concepts [4]
clear regarding the objectives of the business.
OR
Briefly explain any four auxiliaries to trade.

27. Differentiate between traditional business and e-business. [4]

28. Explain the four advantages of being a MNC. [4]

29. Business is a part of society. Explain this statement in the context of Social Obligation [4]
of Business.

30. Explain the need for entrepreneurship development?

31. Write a detailed note on features, structure, objectives and functioning of WTO. [6]
OR
Discuss briefly the factors that govern the choice of mode of entry into international business.

32. List the documents required for the incorporation of a company. [6]
OR
Jagat is running a grocery store under the name 'Morning Needs' in a local market. He takes all
decisions about business himself, without any interference from others and also earns a direct
reward for his risk-bearing.
In the context of the above case:
a. Identify and define the form of business organization in which Jagat has promoted his business.
(2)
b. State any four features of this form of business organization. (4)

33. Gurpreet is planning to start a Diagnostic Centre in Ambala. He visits his uncle Mr. Amarnath in
Patiala, who is successfully running a Diagnostic Centre for many years, to seek his guidance. Mr.
Amarnath tells Gurpreet that the capital needs of his business can be divided into two categories.
Firstly, he will need funds to buy land and building, machinery and furniture and fixtures.
Secondly, funds Tjvill be required to meet day-to-day operations such as maintaining stocks, bills
receivables and for meeting current expenses like salaries, wages, taxes, and rent.
In the context of the above case answer the following: [6]
a. Identify and explain the two types of capital being described above by quoting lines from the
paragraph.(3)
b. Briefly outline any two factors that are likely to affect the requirements of each of the two types of
capital. (3)

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 34. 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 the taste of
the food was not as good as it was during his previous visit. As a result, he felt very disappointed.
[6]
In the context of the above case, answer the following questions:
a. Identify the feature of services being discussed above. (2)
b. Explain briefly three other features of services. (4)

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