11 TH COMMERCE PUBLIC EXAM – ANSWER KEY MARCH - 2025 PART - II

Answer any seven questions. (Q.No. 30 is Compulsory) 7×2=14

A TYPE B TYPE 21. What is meant by Economic Activities?
1 d Assessment year a 2006  Activities undertaken with the object of earning money are called economic activities.
1

2 a Cold storage 2 b Wholesale Trade

22. What are the two schools of Hindu law?
3 c Salary or Wages 3 c Industry
1) Dayabhaga 2) Mitakshara
4 d All of the above 4 d Single line stores
5 a 2013 d All of the above
5 23. Write a short notes on Debit Card
6 d Two 6 a Cold storage  ATM card is also called debit card.
7 a Indirect Tax 7 a 2013  This card is more useful in purchase of goods and services anywhere in India, if the
shop maintains a swiping machine facility.
8 c Industry 8 d Two
9 d All of the above 9 d Assessment year 24. State two disadvantages of Franchising
10 d Single line stores 10 b Sole proprietorship 1) Franchising fees

d Should be performed by A and a a depository receipt 2) Fixed royalty payment: Sony Corporation
11 11
B along with C's legal 3) Danger of image tarnishing:
representatives
Should be performed by A and 4) Lack of freedom:
12 d Life Insurance 12 d
B along with C's legal 5) Limitation on range of products
representatives
13 b Sole proprietorship 13 b Exports are more than Imports
25. Give any two feature of seasonal production but regular consumption
14 a 2006 14 d Life Insurance
1) wheat
15 b Wholesale Trade 15 d Cost Minimisation 2) sugar
16 b Serve the people 16 a Indirect Tax 3) Pulses

17 d Bill of Lading 17 b Serve the people

26. Give two examples for Micro enterprises.
18 a a depository receipt 18 d Bill of Lading
1) Clay pot making,
19 d Cost Minimisation 19 c Salary or Wages
2) Fruits and Vegetable Vendors,
20 b Exports are more than Imports 20 d All of the above 3) Transport (three wheeler tempos and autos),
4) Repair shops,
5) Cottage industries,
6) Small industries,
7) Handlooms,
8) Handicraft works etc.

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27. What are Specialty stores? 33. Define Insurance
 Speciallity Stores deal in a particular type of product under one product line only.  “Insurance is a plan by themselves which large number of people associate and transfer
to the shoulders of all, risk that attacks to individuals” - According to John Merge
28. What is meant by Export Trade?
34. What is meant by Public Corporations?
 The firm of country sells goods and services to a firm of another country it is called
 A public corporation is that form of public enterprise which is created as an autonomous
export trade. ( OR)
unit, by a special Act of the Parliament or the State Legislature.
 Export trade indicates selling of goods and services from the home country to a foreign
country.
35. Explain any three disadvantages of Foreign Direct Investment.
1) Exploiting Natural Resources:
29. What do you mean by Contract?  The FDI Companies deplete natural resources like water, forest, mines etc.
 As a result such resources are not available for the usage of common man in the host
 A “contract” is an agreement enforceable by law. country.
2) Heavy Outflow of capital
30. Give two examples of Important Ancient Trade Centres in Tamil Nadu.  Foreign companies are said to take away huge funds in the form of dividend, royalty
1) Alagankulam (Ramanathapuram) fees etc.
2) Mylarphan (Mylapore, near Chennai),  This causes a huge outflow of capital from the host country.
3) Keberis (Kaveripumpattinam), 3) Not Transferring Technology
4) Poduke or Poduce (Arikamedu, Puducherry),  Some foreign enterprises do not transfer the technology to developing countries.
5) Soptana (Marakanam),  They mostly transfer second hand technology to the host country.
6) Nikam (Nagapattinam),  They keep the fundamental aspects of technology with the parent company.
7) Periyapattinam,  In such case, the host country may not get the advantage of technology transfer and
8) Kayalpattinam, consequent economic development.
9) Colchi (Korkai) 4) Exploiting Cheap Labour
 Foreign enterprises employ cheap labour force at a lower pay in developing countries.
10) Comari (Kanyakumari)
 They do not employ local people for higher posts in the management.
PART - III
5) Creating Monopolistic Environment
Answer any seven questions. (Q.No. 40 is Compulsory) 7×3=21  Multi National Companies (MNCs) which enter the host country through FDI route create
31. What do you mean by the concept of Business Ethics? monopolistic conditions in the host countries through their market power.
 Business ethics may be defined as a set of moral standards to be followed by owners, 36. Mention three important item of India’s Import and Export
managers and business people
 These standards determine the conduct and behaviour of business people Export items Export items
 Business ethics reflcts the conduct in the context of business 1. Petroleum products 1. Mineral fuels including oil

32. What is the minimum and maximum number of members in the partnership 2. Jewelry 2. Gem, precious metals
3. Automobile 3. Electrical machinery and eqipments
concern?
4. Bio - Chemicals 4. Machinery including computers
 Minimum number of persons required to form a partnership is 2.
5. Pharmaceuticals 5. Organic chemicals
 Maximum number of persons required to form a partnership is 50

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37. What are the credit items shown in current accounts? (any 3) 4) There is lesser pollution in water transport.
1. Goods Exports ( visible ) 5) Initial investment on river services as well as expenditure on their maintenance is much
2. Invisible Exports
lesser as compared to road and rail transport.
3. Transport Service sold abroad
4. Banking Service sold abroad
5. Insurance Service sold abroad PART - IV
6. Income received on loan and investment made in foreign countries
Answer all the questions. 7×5=35
7. Expenses incurred by foreign tourists in India

41. a) What are the hindrances of Commerce?

38. What are the kinds of Reciprocal Promise? 1) Hindrance of person
1. Mutual and Independent  Manufacturers do not know the place and face of the consumers.
2. Mutual and Dependent  It is the retailer who knows the taste, preference and location of the consumers.
3. Mutual and Concurrent  The chain of middlemen consisting of wholesalers, agents and retailers establish the
link between the producers and consumers.
39. Explain any three features of Self Help Group. ( any 3 ) 2) Hindrance of place
 Production takes place in one centre and consumers are spread throughout the country
1) The motto of every group members should be “saving first – credit latter”
and world. Rail, air, sea and land transports bring the products to the place of
2) Self Help Group is homogeneous in terms of economic status.
consumer.
3) The ideal size of a Self Help Group ranges between 10 and 20 members.
3) Hindrance of time
4) The groups need not be registered.
 Consumers want products whenever they have money, time and willingness to buy.
5) Groups are non-political, voluntary associations and follow a democratic culture.
 Goods are produced in anticipation of such demands.
6) Each group should have only one member from one single family.
 They are stored in warehouses in different regional centres so that they can be
7) A group is to be formed with only men or only with women.
distributed at the right time to the consumers.
8) Self Help Group holds weekly meetings mostly during non-working hours, and full attendance
4) Hindrance of risk of loss
is made mandatory for better participation.
 Fire, theft, floods and accidents may bring huge loss to the business.
9) The groups have transparency among themselves and they have collective accountability in
 Insurance companies serve to cover the risk of such losses.
respect of financial transactions.
5) Hindrance of knowledge
10) Every group provides a platform to its members for exchange of their views and ideas
 Advertising and communication help in announcing the arrival of new products and their
freely.
uses to the people.
40. What are the advantages of inland waterways ( any 3 ) 6) Hindrance of finance
1) It is considered as the cheapest mode of transport among the other modes of transport.  Producers and traders may not have the required funds at the time of their need.
2) It carries goods smoothly due to the absence of shaking and jolting during transit. It is  Banks and other financial institutions provide funds and help in transfer of funds to
eminently suitable for the carriage of fragile goods like glassware, earth ware etc., enable the functioning of business smoothly.
without causing damage. ( OR )
3) It is most suitable for heavy loads.

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41. b) Explain the need for Social Responsibility. (any 5) 8) Moral Justification
1) Self-Interest  In a large country like India, government alone cannot solve all the problems.
 A business unit can sustain in the market for a longer period only by assuming some  Business has money and talent with which it can assist the government in solving
social obligations. problems.
 Normally businessmen recognise that they can succeed better by fulfilling the demands 9) Socio-Cultural Norms
and aspirations of society.  India has a rich cultural heritage.
 People who have had a higher standard of living and have been exposed to an  Businessmen who help in preserving and promoting this heritage will naturally enjoy
environment conducive to healthy growth make better employees and customers for the patronage of the society and the government.
business than those who are poor, ignorant and oppressed.  Business should, therefore, promote equality of opportunity, healthy relations with
2) Creation of Society employees and customers, etc.
 Business is a creation of society and uses the resources of society. 10) Professionalism
 Therefore, it should fulfil its obligations to society  Management of business enterprises is being professionalised.
3) Social Power  An owner-manager nurses a greater greed for profiteering because all the gains go to
 Businessmen have considerable social power. him. But a salaried and qualified manager is less likely to be lured because he does
 Their decisions and actions affect the lives and fortunes of the society. not benefit from the profits earned through questionable practices.
4) Image in the Society 11) Trusteeship
 A business can improve its image in public by assuming social obligations.  Mahatma Gandhi suggested that “those who own money or property should hold and use
 Good relations with workers, consumers and suppliers help in the success of it in trust for society.” Businessmen should run business firms not for their self-
business.
enrichment but for the good of the society.
5) Public Awareness
 Now-a-days consumers and workers are well informed about their rights.
42. a) Enumerates the advantages of Outsourcing (any 5)
 Consumers expect better quality products at reasonable prices.
1) Focusing on Core Activities
6) Free Enterprise
 Companies can focus on their core competence, a few areas where the company has
 A business enterprise which accepts and discharges social obligations enjoys greater
distinct capability.
freedom.
 The rest of the activities (non core ) can be outsource to outside agencies.
 For example, the government has passed the Consumer Protection Act to prevent
2) To Fill up Economic Development
businessmen from indulging in adulteration, black marketing and other anti-social  Outsourcing stimulates entrepreneurship, encourages employment opportunities, expands
practices. exports, enables tremendous growth of the economy.
7) Law and Order 3) Encourages Employment Opportunities
 Any business unit can survive and grow only when there is law and order in society.  Companies that are outsourcing their non core activities provide chances for other small
 If business exploits the weaker sections of society for too long, these sections will business units to take up the activities.
take the law in their own hands.  This paves way for more job opportunities and new employment avenues.
 The resulting chaos will threaten the very survival of business.

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 4) Reduction in Investment 4) On the retirement of a partner.
 Companies through outsourcing avails the services of outsiders which in turn reduces the 5) On the insolvency of a partner.
investment requirements.  In all the above cases if the business is not continued by the remaining partners,
 The amount so available can be utilized productively and this increases the profits. dissolution of the firm takes place automatically.
5) Quest for Excellence b. Dissolution through court

 Outsourcing enables the firms to pursue excellence in two ways namely excelling  The court may order dissolution of a firm at a suit of a partner in any of the

themselves in the activities they do and excel outsiders by extending their capabilities following circumstances.

through contracting out. a) When a partner becomes insane

b) Permanent incapacity of any partner
( OR )
c) Misconduct of any partner
42. b) Explain the types of dissolution of partnership firm. (any 5) d) Breach of agreement which makes the business impracticable
e) Transfer of interest to third person
Dissolution of a partnership firm is taken place in two ways.
f) Continued loss
a. without the order of the court and g) When the court finds that it is just and equitable to dissolve the firm
b. By order of the court.
a. Without the order of the court
43. a) What are the features of Government Company? (any 5)
1) By agreement or mutual consent 1) Registration Under the Companies Act
 A firm may be dissolved when all the partners agree to close the affairs of the firm.
 A Government company is formed through registration under the Companies Act, 1956;
 Just as a partnership is created by contract, it can also be terminated by contract. and is subject to the provisions of this Act, like any other company.
2) By insolvency of all the partners but one  However, the Central Government may direct that any of the provisions of the
 If any of the partners adjudged an insolvent (or if all the partners become insolvent) it Companies Act shall not apply to a Government company or shall apply with certain
is necessary to dissolve the firm. modifications.
3) When the objective becomes illegal 2) Executive Decision of Government
 When the business carried on by the partnership becomes illegal, the partnership firm  A Government company is created by an executive decision of the Government,
is automatically dissolved. without seeking the approval of the Parliament or the State Legislature.
4) By notice of dissolution 3) Separate Legal Entity
 In the case of partnership at will when any partner gives in writing to all the other  A Government company is a legal entity separate from the Government.
partners indicating his intention to dissolve the firm, the firm will be dissolved.  It can acquire property; can make contracts and can file suits, in its own name.
5) On certain contingencies: 4) Whole or Majority Capital Provided by Government
 Dissolution of partnership itself may involve the dissolution of the firm unless parties  The whole or majority (at least 51%) of the capital of a Government company is
agree to continue it otherwise, it will take place. provided by the Government; but the revenues of the company are not deposited into
1) On the expiry of a specified period in case of partnership for a fixed term. the treasury.
2) On the completion of a particular adventure for which it has been formed in case of 5) Majority of Government Directors
particular partnership.  Being in possession of a majority of share capital, the Government has authority to
3) On the death of a partner. appoint majority of directors, on the Board of Directors of a government company.
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 6) Own Staff 8) Loans Against the Securities
 A Government company has its own staff; except Government officials who are sent to  Banks accept various types of securities like fixed deposit receipt, book debts,
it on deputation. Its employees are not governed by civil service rules. insurance policies, supply bills, shares debentures, bonds of company, document of title
7) Free from Procedural Controls to the goods like railway receipt, bill of lading, trust receipt, warehouse keeper’s
 A Government company is free from budgetary, accounting and audit controls, receipt, book debt, and so on, and provides loan on the basis of the aforesaid
applicable to Government undertakings. securities.
8) Accountability to the Parliament/ State Legislature 9) Clean Loan
 The Annual Report of a Government company is placed before the Parliament or the  Banks provide clean loan to certain customer of outstanding credit worthiness on the
State Legislature. basis of their character, capacity and capability.
( OR )  It simply grants loan without any physical security. In other words clean loan is loan
43. b) Explain the kinds of sources of short term finance. (any 5) given without any security or with personal security.
1) Loans and Advances 10) Commercial Paper (CP)
 Loan is a direct advance made in lump sum which is credited to a separate loan  Commercial paper (CP) is an unsecured money market instrument in the form of a
account in the name of borrower. promissory note.
 The borrower can withdraw the entire amount in cash immediately 11) Hire Purchase Finance
2) Bank Overdraft  Small scale firms can acquire industrial machinery, office equipments, vehicles etc.,
 Bank overdraft refers to an arrangement whereby the bank allows the customers to without making full payment through hire purchase.
overdraw the required amount from its current deposit account within a specified limit. 12) Factoring
Interest is charged only on the amount actually overdrawn.  Factoring is one of the methods of raising business finance through sale or mortgage
3) Discounting Bills of Exchange of book debts.
 When goods are sold on credit, the suppliers generally draw bills of exchange upon  Under this method, business concerns sell the accounts receivable to a finance
customers who are required to accept it. company called a factor at a discount
 The duration of such bills of exchange may be ranging from 15 days to 180 days.
4) Trade Credit
 Trade credit is the credit extended by one trader to another for the purpose of 44. a) Distinguish between Wholesaler and Retailer (any 5)
purchasing goods and services. S.NO Basis Wholesaler Retailer
5) Pledge 1 A wholesaler serves as a A retailer provides a link between
 A customer transfers the possession of an article with the creditor (banker) and Link link between producers and wholesalers and consumers.
receives loan. Till the repayment of loan, the article is under the custody of the retailers. Retailer is the last link in the
borrower Wholesaler is the first link chain of distribution of goods.
6) Hypothecation in the chain of distribution of
 This is loan taken by depositing document of title to the property with the banker. goods.
7) Mortgage 2 A wholesaler carries on A retailer deals generally on a
 This is a type of loan taken from the bank by lodging with the banker title deeds of Scale of business on a large scale small scale and capital invested in
immovable assets like land and building. Operations and requires huge capital. retail trade is relatively small.
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 3 A wholesaler generally deals A retailer deals in a large variety (ii) Genetic Industries

Range of in one commodity. goods and caters to the diverse  These industries remain engaged in breeding plants and animals for their use in
Goods needs of his end customers. further reproduction.
4 A wholesaler generally sells A retailer usually sells goods to  Example : The seeds, nursery companies, poultry, diary, piggery, hatcheries, nursery,
Dealings goods to retailers on credit end consumers on cash basis.
fisheries, apiary
5 Purpose of A wholesaler sells goods for A retailer sells goods for ultimate
(iii) Construction Industries
Selling resale. consumption or use.
 These industries are involved in the construction of building, dams, bridges, roads, as
6 Source of A wholesaler buys goods A retailer generally buys goods
well as tunnels and canals.
Supply from manufacturers and their from wholesalers and their agents
( OR )
agents in large quantities. in small quantities.
7 A wholesaler operates his A retailer operates in a smallest 45. b) Explain the characteristics of Sole trading business. (any 5)
Location business in big commercial village and also big cities and 1) Ownership by one man
cities and expand his locates his business in particular  This is owned by single person.
business to different areas. place of area  The sole trader contributes the required capital.
 He is not only the owner of the business but also manager of the entire affairs.
2) Freedom of work and Quick Decisions
( OR )
 Since the individual is himself as a owner, he need not consult anybody else.
44. b) What is meant by damages and What are its types?  Hence he can take quick decisions.
 Damages are a monetary compensation awarded by the court to the injured party for 3) Unlimited Liability
the loss or injury suffered by him.  When his business assets are not sufficient to pay off the business debts he has to
 There are mainly four types of damages, such as- pay from his personal property.
1) Ordinary damages 4) Enjoying Entire Profit
2) Special damages  He strives tirelessly for the improvement and expansion of his business and enjoys
3) Vindictive or exemplary damages and all the benefits of his hard work.
4) Nominal damages. 5) Absence of Government Regulation
 A sole proprietor concern is free from Government regulations.
45. a) Write a short notes on:  No legal formalities are to be observed in its formation, management or in its
(i) Analytical industry closure.

(ii) Genetic industry 6) No Separate Entity

 The sole trading concern comes to an end with death, disability, insanity and
(iii) Construction industry
insolvency of the individual.
(i) Analytical Industry 7) Maintenance of Secrecy
 Analytical Industry which analyses and separates different elements from the same  Since he/she manages all the affairs of the business, the secrecy can be maintained
materials, as in the case of oil refinery. easily.

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46. a) What are the advantages of MNC’s? 8) Improvement in Standard of Living

1) Low Cost Labour  By providing super quality products and services, MNCs help to improve the standard
of living of people of host countries.
 MNC set up their facilities in low cost countries and produce goods/service at lower
9) Promotion of international brotherhood and culture
cost. It gains cost advantage and sells its products and services of good quality at low
 MNCs integrate economies of various nations w
with
ith the world economy.
cost.
 Through their international dealings, MNCs promote international brotherhood and
 This is not available to smaller companies which operate at regional level.
culture; and pave way for world peace and prosperity.
2) Quality Products
 The resource, experience and expertise of MNCs in the sphere of research and ( OR )

development enables the host country to establish its research and development system 46. b) Explain the advantages of Railway transport. (any 5)
which helps it in producing quality goods and services at least possible cost. 1) Railways are well suited for carrying heavy and bulky goods over long distances.
3) Proper Use of Idle Resources 2) It can provide long distance travel throughout the day and night with unbroken
 Because of their advanced technical knowledge, MNCs are in a position to properly services.
utilise idle physical and human resources of the host country. 3) It can provide better production and safety to the goods than motor transport. The
 This results in an increase in the National Income of the host country. goods
oods generally carried in closed wagons are not exposed to sun, rain etc.
4) Improvement in Balance of Payment Position 4) Though initial investment is large, in the long run the operating expenses will be very
 MNCs help the host countries to increase their exports. low in railways and it will prove a cheaper mode of transport.
 As such, they help the host country to improve upon its Balance of Payment position. 5) It requires less time than mo
motor
tor transport for carrying goods over long distance with
5) Technical Development greater speed
 MNCs carry the advantages of technical development 10 host countries. 6) It has regular schedule of timing and is available throughout the year.
 In fact, MNCs are a vehicle for transference of technical development from one country 7) It provides unaffected services whether rainy or shinny weather conditions.
to another.
 Because of MNCs poor host countries also begin to develop technically.
47. a) Distinguish between Bill of Lading and Charter Party.
6) Managerial Development
 MNCs employ latest management techniques. People employed by MNCs do a lot of
research in management.
 In a way, they help to professionalize management along latest lines of management
theory and practice.
 This leads to managerial development in host countries.
7) End of Local Monopolies
 The entry of MNCs leads to competition in the host countries.
 Local monopolies of host countries either start improving their products or reduce their
prices.
 Thus MNCs put an end to exploitative trade practices of local monopolists.
 As a matter of fact, MNCs compel domestic companies to improve their efficiency and
quality.
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 ( OR )

47. b) Distinguish between Balance of Payment and Balance of Trade. (any 5)

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