Class 11 - Business Studies

Sample paper - 01 (2024-25)

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.

1. Business transaction taking place within the geographical boundaries of a nation is known as a domestic or national
business. It is also referred to as internal business or home trade. Manufacturing and trade beyond the boundaries of
one’s own country is known as international business.
Permitting another party in a foreign country to produce and sell goods under your trademarks, patents, or copyrights in
lieu of some fee is another way of entering into international business. This is through ________.
a) sale of goodwill
b) sale of copyrights
c) sale of trademark
d) licensing and franchising
2. State the full form of RWED:
a) Rural and Women Experiential Development
b) Rural and Women Employment Development
c) Rural and Women Engagement Development
d) Rural and Women Entrepreneurship Development
3. Stages in the formation of a public company are in the following order:
A. Promotion, Incorporation, capital subscription, commencement of business
B. Incorporation, Capital of Business, Capital Subscription Commencement of Business, Promotion
C. Promotion, Commencement of business
D. Capital Subscription, Promotion, Incorporation, Commencement of Business
a) D is correct
b) C is correct
c) B is correct
d) A is correct
4. Retail trade is the example of the type of internal trade on the basis of:
a) Levels
b) Quantity
c) Quality
d) Relationship
5. Which of the following is incorrect regarding the types of manufacturing enterprises?

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 a) In a Small enterprise investment in plant and machinery is more than twenty-five lakh rupees does exceed five
crore rupees.
b) In a Microenterprise investment in plant and machinery does not exceed twenty-five lakh rupees.
c) In a medium enterprise investment in plant and machinery is more than five crore rupees but does not exceed ten
crores rupees.
d) In a Small enterprise investment in plant and machinery is more than twenty-five lakh rupees but does not exceed
three crore rupees.
6. It is not an application of e-business:
a) Online trading
b) Online bidding
c) Contract R&D
d) Online procurement
7. Application for approval of name of a company is to be made to:
a) Government of India
b) Government of the State in which Company is to be registered
c) Registrar of Companies
d) SEBI
8. Which of the following is part of small scale sector?
a) Paper Products and Printing
b) Food Products
c) All of these
d) Cotton Textiles
9. Which of the following statements is false?
A. Long-term funds fulfil the financial requirements for a period exceeding 5 years.
B. Medium-term sources provide funds for a period of more than one year but less than five years.
C. Medium-term sources provide funds for a period of more than one year but less than three years.
D. Short-term funds are required for a period not exceeding one year.
a) Only C is false
b) Only D is false
c) Only B is false
d) Only A is false
10. Assertion (A): A Company has Perpetual Existence.
Reason (R): The existence of a company is not affected by the death, retirement, resignation, insolvency or insanity of
its members.
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.
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11. Which of the following statements is correct for wholesalers:
a) They undertake additional activities.
b) They generally 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

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12. To sell ready-made garments for children, men, women, etc. is the example of:
a) General Store
b) Single-line shop
c) Departmental Store
d) Single-product shop
13. The company form of organization is governed by which of the following Acts:
a) The Companies Act, 1866
b) The Companies Act, 1913
c) The Companies Act, 2013
d) The Companies Act, 1956
14. Which of the following comes under Modern Small Industries?
a) Khadi
b) Handicrafts
c) Coir
d) Powerlooms
15. Social interests and business interests are ________.
a) Contradictory
b) Complementary
c) Counteractive
d) Conflicting

16. Assertion (A): Rate of Interest on Savings account is lower than Fixed Deposit account.
Reason (R): Savings account is most suitable for small households' savings.

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.
17. Which of the following is part of Village and Small Industries Sector?
a) Handlooms
b) All of these
c) Sericulture
d) Handicrafts
18. Since the main objective of the business is to earn profits, which of the 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 prices
d) Selling low-quality product at low prices
19. In which year National Small Industries Corporation(NSIC) was set up?
a) 1953
b) 1954
c) 1956
d) 1955
20. A Government Company may be formed as which of the following:
a) Public Company
b) Private Company

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 c) Either Public or Private Company
d) Neither Public nor Private Company
21. Explain in brief why nations are involved in foreign trade?
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material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8 App to create similar
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22. Santosh and Sandeep both completed their MBA education and thought of making business as their career. Santosh set
up a Flour Mill, while Sandeep started the Wholesale Business of 'Ghee'. Both the friends are engaged in creation of
utility in their respective business.
Point out the creation of utility being done by each of them.

OR

Explain any two business activities which are auxiliaries to trade.

23. A thread manufacturing company open shop at different locations in India. He sells goods on cash basis only. The shops
have identical decorations. The prices of goods are fixed. In this way they eliminate unnecessary middlemen thus
benefiting the consumers.
i. Identify the type of shop referred to.
ii. State any of its two merits.
24. After reading an advertisement in the newspaper about an upcoming public issue of preference shares of a
pharmaceutical company, Tushar made up his mind to invest money in that issue. Later on, he discussed his plan with his
friend Vikesh who he is a stock broker. Vikesh, on the contrary, advised him to invest in equity instead.
Give any three possible reasons because of which Vikesh wants Tushar to invest in equity and not in preference shares.

OR

After completing the studies, Priyanka decided to start her own business of hand made chocolates. After analyzing all the
pros and cons, she came to the conclusion that the total funds required are Rs. 12,00,000. She had Rs. 2,00,000 in her
savings bank account. As these funds were insufficient to start the business, she approached Axis Bank for obtaining a
loan of Rs. 10,00,000. The loan was approved within a month. On the basis of the given case, answer the following
questions:
i. Categorize the two types of funds on the basis of ownership.
ii. Out of the two sources of funds, which one is a permanent source of finance?
iii. Which source of funds requires a legal obligation to pay interest at a fixed rate at regular intervals?
25. Rajinder Singh and his brother Ravinder Singh own a large scale retail outlet at a central location in Amritsar. They deal
with varied kinds of products like textiles, footwear, cosmetics, etc. which are sold through different divisions within the
establishment.
In the context of the above case answer the following questions:
a. Identify the type of retail outlet being described in the above lines.
b. State any two merits and two limitations of the type of retail outlet as identified in part (a) of the question.

OR

Write a note on the Automatic Vending Machine.

26. Annaya was doing research on the banking sector for her assignment. While browsing through the website of Reserve
Bank of India, she came across a specimen of a type of Hundi which is like any other bearer instrument and is payable to
the holder or bearer.
In the context of the above case answer the following:

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 i. What is a Hundi?
ii. Identify the type of Hundi being described above.
iii. Describe briefly any two other types of Hundi.

OR

Give any three points of difference between business and employment.

27. How do online transactions increase the risk of anonymity and non-traceability of parties?
28. List the names of some enterprises under the public sector and classify them.
29. 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
Naandi Foundation to supply iron-fortified Tiger biscuits to supplement the Mid-Day Meal program in schools. Iron
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 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.
30. Discuss any five incentives provided by the Indian Government for industries in backward and hilly areas.
31. India is considered to be one of the leading exporters of leather goods. 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:
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

Rekha Garments has received an order to export 2000 men's trousers to Swift Imports Ltd, located in Australia. Discuss
the procedure that Rekha Garments would need to go through for executing the export order.
32. Rakesh, Sudhir, and Mohit have mutually decided to set up a new small scale handicraft factory in a remote rural area in
Haryana. As it will not only help to meet the growing demand for their products but also generate different kinds of
employment opportunities in the village and foster its economic development. They have decided to promote their
business in the form of partnership. Sudhir's association with the firm will be hidden from the general public. Mohit will
not take part in the day to day activities of the business due to health issues. However, Rakesh will take actual part in
carrying out the business of the firm on behalf of other partners. In the context of this case answer the following
questions:
a. Briefly explain the various types of partner which are being mentioned in the above paragraph.
b. Identify any two values which are being fulfilled by the firm.

OR

A syndicate of three persons namely, Akanksha, Ann, and Devesh was formed to purchase the Tech Solutions Company
and to promote and register a company to which the Tech Solutions Company property was to be resold. At that time the
Tech Solutions Company was in a bad shape. The syndicate first bought the debentures of the Tech Solutions Company
at a discount. Then they brought the company for Rs. 44,00,000. Out of this money, provided by them, the debentures

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 were repaid in full and a profit of Rs. 40,000 was made thereon. They promoted a new company and sold Tech Solutions
Company to it for Rs. 54,00,000. The profit of Rs. 10,00,000 was revealed in the prospectus, but not the profit of Rs.
40,000. It was held that the profit of Rs. 40,000 was a secret profit made by the syndicate as promoters of the company. In
the context of the above case answer the following questions:

a. 'Promoters of a company enjoy a fiduciary position with the company, which they must not misuse.' Explain with
reference to the above case.
b. What course of action can the company take in the event of non-disclosure of any secret profits made by the
promoters?
33. Rakesh plans to set up an environmentally-friendly textile factory. He plans to use fossil fuels to make paint, plastics,
and polymers. Since the wastewater from textile processing and dyeing contain residues, he has also decided to ensure its
appropriate treatment before it is released into the environment. He is planning to approach a Special Financial
Institution to raise loans for his business.
In the context of the above case answer the following questions:
a. Describe briefly any two Special Financial Institutions in India.
b. State any two merits of raising loans from financial institutions.
c. List any two values that Rakesh wants to com m unicate to society.
34. Mr. Jitendra, the owner of 'Jitendra Steel Industry' does the wholesale trade of utensils. Some of the utensils are made in
his factory itself and some others, he purchases from other manufacturers. Every day, he has to make payments to several
other traders. He wants that as soon as he deposits money in his bank it should be credited to the account of the receiver
without any delay. On enquiring from the bank, he learned that through e-banking there are two systems available for
sending money from one place to another. According to one system, transfer of money from one bank to another is done in
batches and according to the other system, transactions are done one after the other in continuity. State the names of these
two systems. Explain the system in detail which will be useful to Mr. Jitendra. To practice more questions & prepare well
for exams, download myCBSEguide App . It provides complete study material for CBSE, NCERT, JEE (main), NEET-
UG and NDA exams. Teachers can use Examin8 App to create similar papers with their own name and logo.

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