Class XI Business Studies Sample Paper – Set 1

Maximum Marks: 80 Time Allowed: 3 hours

General Instructions:

1. This question paper contains 34 questions.

2. Marks are indicated against each question.

3. Answers should be brief and to the point.

4. Answers to the questions carrying 3 marks may be from 50 to 75 words.

5. Answers to the questions carrying 4 marks may be about 150 words.

6. Answers to the questions carrying 6 marks may be about 200 words.

7. Attempt all parts of the questions together.

Q. No. Questions Marks

1. Which of the following document is prepared by the exporter and 1

includes details of the cargo in terms of the shipper's name, the number
of packages, the shipping bill, port of destination, name of the vehicle
carrying the cargo?

a) Shipping bill

b) Mates receipt

c) Packaging list

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 d)Bill of exchange.

2. Expand SIDBI: 1

a) Super Industrial Development Bank of India

b)Small Indian Development Bank of India

c)Small Industries Development Bank of India

d)Society Industrial Development Bank of India

3. A proposed name of the Company is considered undesirable if: 1

A. It resembles closely with an existing company the name of an

existing company.

B. It is an emblem of Government.

C. It is identical with the name.

a) Only C

b) Only B

c) Only A

d) All of these

4. _______ are agents who merely bring the buyer and the seller into 1
contact.

a) Commission agent

b) Broke

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 c) Stockist

d) Selling agent

5. When does SFURTI was set up by the Central Government of India? 1

a)2005

b)2002

c)2003

d)2004

6. n important C2C area of interactive commerce can be the formation of 1

________.

a) consumers forum

b) B2B commerce

c) insurance

d)banking

7. A government company is any company in which the paid-up capital 1

held by the government is not less than

a) 49 percent

b) 51 percent

d)50 percent

c) 25 percent

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8. Expand NSIC: 1

a) National Small Industries Centre

b)National Small Indian Corporation

c)National Small Industries Corporation

d) National Small Business Industries Center

9. Which of the following statements is true regarding preference shares? 1

A. Preference shares provide an unsteady income in the form of a

flexible rate of return.

B. Preference shares are preferably for investors with a high-risk

appetite.

C. Preference shareholders have voting rights.

D. Preference shareholders enjoy a preferential position over equity

shareholders.

a) Only A is true

b)Only C is true

c) Only D is true

d)Only B is true

10. Assertion (A): Partnership at will get terminated when any partner 1
gives notice of withdrawal from partnership to the firm.

Reason (R): Partnership at will exists at the will of the partners i.e.
continues as long as the partners want.

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 a) Both A and R are true and R is the correct explanation of A.

b) Both A and R are true but R is not the correct explanation of A

c) A is true but R is false.

d) A is false but R is true

11. The persons who come in between the primary producer and the final 1
consumer to promote trade is called ________.

a) middleman

b) auctioneer

c)Retailer

d)trader

12. The main objective of selling goods through consumer cooperative 1

stores is to reduce the cost of the product by reducing the number of
________.

a) Wholesalers

b) Consumers

c) Manufacturer

d) Middlemen

13. In terms of the continuity of the business organization, which form of 1

organization is the most advantageous?

a) Sole Proprietorship

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 b) Co-operative Society

c) Partnershid

d)Joint Stock Company

14. which of the following is an internal cause leading to sickness and 1

closure of sick small business units?

a) Lack of skilled and trained labour

b)Delayed payment

c) Lack of demand for their product

d)Shortage of working capital

15. Social interests and business interests are ________ 1

a) Contradictory

b) Complementary

c) Counteractive

d) Conflicting

16. assertion(A): Current account is mostly suitable for business firms. 1

Reason(R): Holder can deposit or withdraw money as and when

required.

a) Both A and R are true and R is the correct explanation of A.

b)Both A and R are true but R is not the correct explanation of A.

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 c) A is true but R is false

d)A is false but R is true

17. Limit of investment in small scale industry is ________. 1

a) ten lakh

b) five crore

c) two crore

d) ten crore

18. Since the main objective of the business is to earn profits, which of the 1
following is not an appropriate method of earning profits:

a)All of these

b)Inflating the prices

c)Selling a good quality product at reasonable price

d)Selling low-quality product at low prices

19. A maximum investment that is required for equipment in 1

Microenterprises which are engaged in rendering services is

a) ₹ 5 lakhs

b) ₹ 10 lakhs

c)₹ 20 lakhs

d)₹ 15 lakhs

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20. Funding for Departmental Undertakings comes from which of the 1
following sources:

a) Debentures

c) Government Treasury

c)Government Treasury

d) Loans from Financial Institutions

21. Ramakant is a successful businessman who is engaged in 3

manufacturing of auto spare parts. The products manufactured by him
are sold not only in India, but are also exported to various countries
like Singapore, Switzerland, Belgium, etc. On the basis of given case,
answer the following questions:

a. Identify the two kinds of business in which Ramakant is engaged.

b. Differentiate between the two types of business as identified in part

(a) of the question.

22. Rohan, a student of business studies, wants to understand the 3

interrelation between industry, trade, and commerce. Help him.

OR

What are the various types of industries?

23. When we buy some goods from the market the shopkeeper issues us a 3
Trade Document. At the bottom of this document is written E. & O.E.
What do you understand from these letters? Explain the justification of
these letters.

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24. Discuss the various types of preference shares. 3

OR

What do you mean by preference shares? Discuss its various merits.

25. Explain the types of home trade on the basis of level. 4

OR

Geeta recently came across an advertisement of portal weight-reducing

equipment in the newspaper. The product is being manufactured by a
small trader and is available for sale throughout the country by placing
an order through the post. The buyer has been given an option of cash
on delivery or e-wallets as a payment option. In the context of the above
case answer the following questions:

a. Identify the type of retail trade being described in the above lines.

b. List any five conditions under which it may be considered suitable

26. Business is an organized institution that operates to provide goods and 4

services under the incentive of private gain. Discuss.

OR

Explain how industry, trade, and commerce are interrelated.

27. After completing a course in gemology, Esha joins her father in the 4
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 the marketing department can
interact constantly with the production department and get the

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 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 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.

28. Explain briefly the following features of global enterprises: 4

i. Huge capital resources

ii. Foreign collaboration

iii. Expansion of market territory

iv. Centralised control

29. What are the responsibilities of business towards society (public)? 4

30. What do you understand by Intellectual Property Rights? Explain. 4

31. India is considered to be one of the leading exporters of leather goods. 6

The main leather items include leather bags, belts, leather pouches, and
handbags. Different kinds of gift items like key rings, leather journals,
and leather-covered notebooks also have a huge demand in foreign
countries. Numerous small scale and large scale enterprises in India are
constantly engaged in exporting leather goods to various foreign
countries like Germany, UK, Italy, Hong Kong, France, Spain,
Netherlands, UAE, Belgium, and China. In the context of the above
case answer the following:

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 a. Briefly outline any two benefits available to the business firms who
are engaged in leather export.

b. How do the different countries engaged in international trade of

leather goods stand to gain (any two points)?

OR

What do you mean by exporting and importing? Mention its

advantages and disadvantages.

32. Distinguish between a Co-operative society (organisation) and a 6

Company.

OR

Describe briefly different types of cooperative societies.

33. Ding Dong Ltd. is planning to float an issue of equity shares in the 6
market in the next four months. The directors of the company are also
of the opinion that the company should raise some portion of funds
from international capital markets through equity. In the context of the
above case:

a. State any four merits of raising funds through equity shares.

b. Explain briefly any one source through which Ding Dong Ltd. can
raise funds through international capital markets.

34. State the types of life insurance policies. 6

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