Business Studies Class XI Sample Question Paper 2022-23 PDF

CLASS XI BUSINESS STUDIES (054) SAMPLE QUESTION PAPER (2022-23) MM – 80 TIME: 3 HOURS General instructions : 1. This question paper contains 34 questions. 2. Marks are indicated against eac...

CLASS XI BUSINESS STUDIES (054) SAMPLE QUESTION PAPER (2022-23) MM – 80 TIME: 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. An American firm “Zebsik enterprise” purchased handmade decorative pieces from 1 India, re-packaged and sold them in its own name to Germany. This represents: a. Entrepot for Zebsik enterprise, export for India & import for Germany. b. Entrepot for Zebsik enterprise, Import for India & export for Germany. c. Export for Zebsik enterprise, import for India & entrepot for Germany. d. Entrepot for Germany, export for India & import for Zebsik enterprise. 2. A company has to apply for the listing of shares in stock exchange; if permission is 1 not received then the allotment will be void. Therefore permission shall be received within: a. 7 weeks b. 10 weeks c. 30days d. 10days 3. Find any two similarities between joint stock company and cooperative societies. 1 a. Limited Liability & Common Seal b. Separate Entity & Formation c. Limited Liability &Management Control d. Separate Entity & Service Motive 4. Mr. Zed, a 39 year old, young man came to know that he is suffering from heart 1 blockages, which need to be operated within next threemonths. He purchased an insurance policy worth rupees 10 lacs, without disclosing his true clinical material facts. He got operated but insurance company refused to pay the dues stating thathe had violated one of the insurance principles. Identify it. a. Subrogation b. Mitigation c. Insurable Interest d. Utmost good faith 5. This particular type of Bank account is a combination of savings bank and current 1 account with term or special term deposits accounts. a. Multiple Option Deposit Account b. Fixed Deposit Account c. Recurring Account d. Saving Account 6. Match the columns and choose the correct alternatives: 1 Column I Column II A. B2B Commerce i. A firm’s internal processes. B. B2C Commerce ii. A part of channel through which a firm distributes its products to its customers C. Intra-B Commerce iii. The business originates from the consumer and ultimate destination is also consumer. D. C2C Commerce iv. Entails a wide gamut of marketing activities that are carried out online. a. A – iv, B – ii, C – i, D – iii b. A – iii, B – ii, C – i, D – iv c. A – ii, B – i, C – iii, D – iv d. A – i, B – ii, C – iii, D – iv 7. Read the statement carefully and choose the correct alternative: 1 Statement I: There is high investment for setting up in e-business. StatementII: e-business is also helpful in personnel recruitment, selection and training. a. Both the statements are true. b. Both the statements are false. c. Statement I is true, Statement II is false. d. Statement II is true, Statement I is false. 8. Identify internal source of finance from the following. 1 a. Trade Credit b. Debentures c. Equity Shares d. Inter Corporate Deposits 9. Everyday an ice-cream vendor appears in front of your school. Name the type of 1 retailer referred here. a. Peddlers and Hawkers b. Market Traders c. Street Traders d. Single line Stores 10. Assertion (A): Bank Credit is a permanent source of finance. 1 Reason (R): Though banks have started extending loans for longer periods, generally such loans are used for medium to short periods. a. Both A & R are correct, But R is not the correct explanation of A. b. Both A & R are false. c. A is false, But R is true. d. Both A & R are true and R is the correct explanation of A. 11. Rahi Ltd. is a company dealing in organic products. The company requires funds, 1 for short term, in order to meet the additional demand during festival season. The financial manager of the company suggested that the company can borrow funds from Rare Limited. Rare Limited deals in FMCG products. Identify the suitable source for raising funds to be used by financial manager in the above case. a. Inter corporate deposits b. Trade Credit c. Cash Credit d. Bank Overdraft 12. A Patent grants exclusive rights to the inventor for a period of ____ during which 1 anybody else who wishes to use the patented subject matter needs to seek permission from the patentee, by paying certain cost for the commercial use of such invention. a. 2 years b. 5 years c. 10 years d. 20 years 13. Mohan Invested ₹ 5, 00,000 in the debentures of Venus ltd. The return for his 1 investment is called_____ a. Profit b. Dividend c. Interest d. Shares 14. Jasbir is running an artificial jewelry business on the basis of advertisement only. 1 She has not opened any shop and delivers goods to her customers through courier. Identify the type of Retail Trade that Jasbir is running. a. Export Trade b. Chain Stores c. Mail order houses d. Single line stores 15. It is a guarantee issued by the importer’s Bank that it will honour payment up to a 1 certain amount of export bills to the bank of the exporter. Identify the document. a. Letter of Indemnity b. Indent or Order c. Letter of Credit d. Bill of Exchange 16. Which of the following document is not required for obtaining export license? 1 a. IEC Number b. Letter of Credit c. Registration cum membership certificate d. Sight Draft 17. GST is the single comprehensive ____________ tax on supply of goods and 1 services. a. Direct b. Indirect c. Personal d. Impersonal 18. Which of the following document is not required in connection with an import 1 transaction? a. Bill of Lading b. Shipping Bill c. Certificate of Origin d. Shipment Advice 19. Which of the following statement is FALSE for MSME sector in India 1 a. MSME sector is the second largest employer of human resources, after agriculture. b. MSME is considered being less labour intensive and more capital intensive. c. MSME in our country supplies an enomourous variety of products whichinclude mass consumption goods etc. d. MSME is considered being more labour intensive and less capital intensive. 20. The basic objective of Start-ups India scheme is 1 a. Trigger an entrepreneurial culture and inculcate entrepreneurial values. b.Create awareness about the charms of being an entrepreneur. c. To carve strong eco system for nurturing innovation & startups of country d. Encourage more dynamic start up by motivating educated youth as a viable career. 21. Mohan, after completing his MBA from a reputed college returned to India. He hired 3 a cab (taxi) from the airport to his house at a fare of ₹ 3000 as no cab was ready to go on meter. In midway he got an idea to start a kind of cab facility in which all the cabs of his business will run on meter along with the total amount of fare will be known to the passenger before boarding hiscompany’s cab. He analyzed the idea with its operational viability, also was able to arrange funds required to start the business as idea seems to be profitable. Hence, Mohan decided to start a company with a name of “Cab Convenience”. In above Para Mohan has performed the few steps of one of the stage of formation of company, Explain the next three steps to be performed by Mohan to complete this stage of formation. 22. Explain any three functions of commercial banks. 3 OR Explain any three types of digital modes of payment. 23. Life insurance corporation of India is the largest insurance company in India. It is 3 headquartered in Mumbai. It was founded in the year 1956, where the parliament of India passed the life insurance of India act that nationalized the private insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state owned life insurance corporation. (a) Life insurance corporation is classified as which form of public sector enterprise. (b) State any two features that highlights Life Insurance corporation of India in a particular form of public sector enterprise as identified in part (a). OR With Exponential growth seen in domestic transportation additional metro rail infrastructure, government has decided to offer more metro networks to private parties for operations and management. In Delhi, as 30 metro stations needed to be revived and upgraded in coming years to support the double digit growth in the sector. This would require huge private investment as public funds are limited for infrastructure development. In February 2017, Central government announced that metro rail infrastructure will be built by state owned enterprises (Local and International) in Delhi, Mumbai, Bangalore and Hyderabad to private developers. Identify the type of enterprise discussed in above Para. Also State its two features. 24. Following is the capital structure of the ABZ Ltd, composed with different sources of 3 finance. 8% Debentures ₹ 50,000 10% preference share capital ₹ 1,00,000 Equity share capital ₹ 1,00,000 Profits of the company for the year 2017-18 are ₹50,000. (a) From the above sources of finance, Identify the source of finance that provides tax benefits to the organization. (b) State any two preferential rights available to preference shareholders over equity  shareholders. 25. With the reference to following items identify and explain types of intellectual 4 properties. i. Darjeeling Tea ii. Registered Brand Name 26. “Fundamental reason behind international business is that every countrycan’t 4 produce equally well or cheaply all that they need, hence international business is required”. Explain any four rationale of the same. OR “International Trade is not only beneficial to Countries but it also works for the well- being of industry and trade of these countries” Explain the rationale of the same. 27. Harsh runs an online store dealing in all kinds of household items which he procures 4 from different dealers. Whereas his friend Lakshay runs a storethrough which hesells all kinds of organic products like spices, pickles, jams etc. these products are produced in his automated manufacturing unit in Kerala. (a) Identify the two concepts undertaken by Harsh and Lakshay respectively. (b) Also differentiate between the concepts identified in part (a) on the basis of : · Shape · Transaction risk · Nature of human capital 28. Explain any four arguments for social responsibility 4 OR Explain any four elements of business ethics. 29. Mohit and Sumit are friends. They have to attend the birthday party of a common 4 friend. Mohit goes to ‘Poshak kids wear’ exclusively for kids wear with his parents to get a new dress for party, whereas Sumit purchased his dress from ‘Reliance Mart’. & his mother purchased grocery from the same store. (a) Identify the type of stores Mohit and Sumit visited. (b) Explain any onefeature of each store identified in part (a). 30. In the banking system in India dated back to 1750 B.C. there evidence of loans from 4 Vedic period. From the writing of many foreign travelers during Mughal period we came to know about the use of various instruments in the then great commercial centers. In the Mughal period historians found evidence of loan which is known as dastawez of two types- one was payable on demand and other was payable after a stipulated time. The most important class of credit instruments of exchange evolved India at that time. Their use was most widespread in the twelfth century and has continued till today. These instruments were famous in many then trade centers such as Mathura, Kaveripatta and Broach. (a) Identify the instruments of exchange prominent in the great ancient Commercial centers of India. (b) Also state the commercial importance of the trade centres mentioned in the para. 31. A, B, C and D are partners in a firm with unlimited liability. But after 1991, B and C decided that they didn’t want to bear unlimited risk. With the consent of all the 6 partners, they made amendments in partnership deed and changed their liability clause, in which now the members are responsible for the losses only to the extent of the capital invested by them. (a) Identify the types of partnership formed before and after 1991 (b) State any two differences between the types of partnership identified in part (a) (c) Also explain any three advantages of partnership form of business organization. OR Private sector comprises various types of business organizations. However there is such form of business organization which restricts the rights of transfer of ownership in one of its types, on the other hand the other type of same business organization, allow its owners to transfer their rights of ownership. (a) Identify the types of one of the form of business organization highlighted in above para. (b) State any five differences between the types identified in part (a). 32. Excel ltd. has received an order to export 2000 sewing machines to Swift Import ltd. 6 of Spain. Explain in brief first six steps which Excel ltd. would need to go through for executing the export order. 33. Deepak Beverages ltd. Is planning to expand its operations. Therefore the board of 6 directors planned to issue shares worth ₹10, 00,000. But it is facing some short term financial difficulty, therefore doesn’t have sufficient funds to meet its cost of issue of shares. The company invited deposits from the general public for 6 months @ 15% p.a. rate of interest, issued a deposit receipt as an acknowledgement by the company. In this way company was able to meet its short term financial need. (a) Identify and specify the type of fund which Deepak beverages ltd. raised in above (b) Also state any three merits and two demerits of the specified fund identified in part (a). 34. Umesh established ‘Niger’ in 2021 in USA. The powers, rules and regulations of 6 “Niger’ was decided as per USA norms. Niger established its trade projects in different parts of the world to increase its market territory which leads to greater revenue and higher efficiency. (a) How will ‘Niger’ be categorised as a private sector enterprise? (b) State any five features of this private sector enterprise. OR BHEL was founded in the year 1964 by the Government of India. It is the largest power plant equipment manufacturer in the country with 74% market share in the Power Sector. It hasnetwork of 17 manufacturing units, 2 repair units, 4 regional offices, 8 service centres and infrastructure allowing it to execute more than 150 projects at sites across India and abroad. It has been granted the prestigious Maharatna status in2013 by the Government of India. Maharatna Status allows the Board of this company enhanced financial and operational autonomy. In content of the above case: (a) How will BHEL be classified as a form of Public Sector Enterprise? (b) State any four features of the form of Public Sector Enterprises as identified in part (a). (c) State briefly ‘Operational autonomy’ as a merit of the type of Public Sector Enterprises as identified in part (a).  CLASS -XI BUSINESS STUDIES (054) MARKING SCHEME (2022-23) Maximum Marks: 80 Marking Scheme/Hints to solutions [Note: Any other relevant answer, not given here under but given by the candidates, be suitably awarded.] Q.No Value points/ Key points Marks Total allotted to marks each key point 1. (a) Entrepot for Zebsik enterprise, export for India & import for 1 (1) Germany. 2. (b) 10 weeks 1 (1) 3. (c) Limited liability & Management control 1 (1) 4. (d) Utmost good faith 1 (1) 5. (a) Multiple Option Deposit Account 1 (1) 6. (a) A – iv, B – ii, C – i, D – iii 1 (1) 7. (d) Statement II is true, Statement I is false. 1 (1) 8. (c) Equity 1 (1) 9. (a) Peddlers and Hawkers 1 (1) 10. (c) A is false But R is true. 1 (1) 11. (a) Inter corporate deposits 1 (1) 12. (d) 20 years 1 (1) 13. (c) Interest 1 (1) 14. (c) Mail order houses 1 (1) 15. (c) Letter of Credit 1 (1) 16. (d) Sight draft 1 (1) 17. (b) Indirect 1 (1) 18. (b) shipping bill 1 (1) 19. (b) MSME is considered being less labour intensive 1 (1) and more capital intensive. 20. (c) To carve strong eco system for nurturing innovation 1 (1) & start-ups in the country 21. Next three stages of Promotion step are: ½ mark for (3) (i) Fixing of signatories to the Memorandum of Heading + Association ½ mark for (ii) Appointment of Professional each (iii) Preparation of necessary documents explanation 22. Functions of Commercial Banks:- ½ mark for (3) (i) Acceptance of Deposits Heading + (ii) Lending of funds ½ mark for (iii) Cheque facility explanation (or any other relevant point) OR Digital mode of Payments:- ½ mark for (i) Debit Card Heading + (ii) Electronic Fund Transfer ½ mark for (iii) Mobile Wallets explanation (or any other relevant point) 23. (a) Statuary Corporation 1 mark for (3) (b) Features of Statuary Corporations: identificatio (i) A set up under the act of Parliament n + 1 mark (ii) wholly owned by the State for each (or any other relevant point) point OR Public Private Partnership Features:- (i) Contract with the private party to design and build public facility 1 mark for (ii) Facility is financed and owned by the public sector identificatio (or any other relevant point) n + 1 mark for each point 24. (a) Debentures 1 mark for (3) (b) Prefential rights to Preference Shares identificatio (i) Receiving a fixed rate of dividend out of the net profits of n + 1 mark the company, before any dividend is declared for equity for each shareholders. feature (ii) Receiving their capital after the claim the company’s creditors have been settled. 25. (a) Geographical Indication: - It is primarily an indication which 1 mark for (4) identifies agricultural, natural or manufactured products Identificatio originating from a definite geographical territory. n + 1 mark (b) Trade Mark:- It is any word, name or symbol that lets us for identify the goods made by an individual, company and explanation organisation etc. 26. Benefits of International trade to nations: ½ mark (4) (i) Earning of foreign exchange each (ii) More efficient use of resources heading + (iii) Improving growth prospectus ½ mark for (iv) Increased standard of living explanation (or any other relevant point) OR Benefits of International trade to firms: (i) Prospects for higher profits ½ mark (ii) Increased capacity utilization each (iii)Prospects for growth heading + (iv) Improved business vision ½ mark for (or any other relevant point) explanation 27. (a) Traditional Business and E-business 1 mark for (4) (b) identificatio Basis of Traditional E-business n + 1 mark difference business each for Shape of Vertical/Tall Horizontal/Flat difference organisational structure Transaction risk Low High  Nature of Human Semi-skilled and Technically and Capital even Un skilled Professionally qualified 28. Argument for Social responsibility ½ mark (4) (i) Justification of existence and growth each (ii) Long-term interest of the firm heading + (iii) Avoidance of government regulation ½ mark for (iv) Maintenance of the society explanation (or any other relevant point) OR Elements of Business Ethics: (i) Top management commitment (ii) Publication of Code ½ mark (iii) Establishment of compliance mechanisms each (iv) Involving employees on each level heading + (v) Measuring results ½ mark for (Any four points) explanation 29. Types of retailers :- 1 mark (4) (i) Speciality Stores each for (ii) Departmental Stores identificatio Features (Specialty stores):- n + 1 mark (i) Located in a central place where a large number of for each customers can be attracted. point. Features(Departmental Stores) (i) It provides all facilities such as restaurant, trade and information etc. (or any other suitable points) 30. (a) The instruments of exchange prominent in the great ancient ½ mark (4) Commercial centers of India:- each for identificatio Darshani Hundi and Muddati hundi n + 1 mark for each The commercial importance of the trade centres mentioned in the point. para is: (i) Mathura : Emporium of trade and many routes from South India touched Mathura (ii) Kaveripatta: Centre of trade for perfumes, cosmetics and wool etc. also for ship building (iii) Broach: situated on the bank of river Narmada and linked with all important marts by roadways 31. (a) General Partnership and Limited Partnership 1 mark for (6) (b) Differences between General partnership and Limited identificatio Partnership. n+ Basis General Limited Partnership Partnership 2 marks for Liability Unlimited and joint Atleast one partner differences is limited rest unlimited Registration Optional Compulsory (c) Advantages of partnership form of business : i. Ease of formation & closure  ii. Balanced decision making ½ mark for iii. More funds each point ( any other relevant point) + ½ mark for each OR explanation (a) Private company & Public company (b) Difference between Private and Public company ½ mark for Basis Private Public company each Members Minimum-2 Minimum-7 identificatio Maximum-50 Maximum- unlimited n+ Directors 2 3 1 mark for Paid up capital 1Lac 5 Lacs each Index of members Not compulsory Compulsory difference Transfer of shares Restriction No Restriction 32. The first six steps of Export procedure are : ½ mark for (6) 1. Receipt of enquiry and sending quotation each point 2. Receipt of order or indent + ½ mark 3. Assessing importer’s creditworthiness and securing for each guarantee for payments explanation 4. Obtaining export licence 5. Obtaining pre shipment finance 6. Production or procurement of goods. 33. (a) Public deposits 1 mark for (6) (b) Merits:- identificatio (i) The procedure of obtaining deposit is simple n +1 mark (ii) No dilution in the control of company for each (iii) It does not create any charge on assets of business. point (or any other relative points) Demerits:- (i) Not suitable for new organizations. (ii) Unreliable source of finance (Or any other suitable points) 34. (a) Global Enterprises 1 mark (6) (b) Features:- each for (i) Huge capital resources identificatio (ii) Foreign collaboration n + 1 mark (iii)Advance Technology for each (iv) Product innovations point. (V) Marketing strategies (or any other relative points) OR (a) Government Company (b) Features:- 1 mark for (i) Company can enter into contract and can acquire identificatio property in its name. n (ii) Company can file a suit in a court of law against + 1 mark for any third party and be sued. each point (iii) The management of the company is regulated by of feature. + the provision of the companies act. 1 Mark for  (iv) The government company obtained its funds from stating. government shareholding and other private shareholders. (c) Operational autonomy: - Government Company enjoys autonomy in all management decisions and take actions according to business prudence.