Business Studies Question Paper Solved 2016 | WBCHSE | Class 11

BUSINESS STUDIES 2016

GROUP – A

1. Choose the correct alternative: [1 x 10 = 10]

(i) Which of the following is not a feature of profession?

(a) Special education

(b) Specific code of conduct

(c) Professional independence

(d) Negotiability

(ii) Maximum number of members of a Co-operative society is –

(a) 10

(b) 20

(c) 100

(d) No limit

(iii) The first Companies Act came in force after independence in the year –

(a) 1932

(b) 1949

(c) 1956

(d) None of these

(iv) Minimum number of directors of a Private Ltd. company is –

(a) 7

(b) 3

(c) 2

(d) None of these

(v) Govt. investment of capital employed in a Government Company will be at least –

(a) 30%

(b) 50%

(c) 51%

(d) 75%

(vi) Number of organizational forms of public enterprises in India is –

(a) 4

(b) 6

(c) 3

(d) None of these

(vii) Full form of RTGS is –

(a) Right Time Gross Settlement

(b) Right Time General Settlement

(c) Right Time General Service

(d) None of these

(viii) Employees State insurance is a –

(a) Social Insurance

(b) General Insurance

(c) Life Insurance

(d) None of these

(ix) Responsibility of business towards its owners is –

(a) payment of fair wages and salary

(b) Regular payment of dividend

(c) Regular tax payment

(d) None of these

(x) Which of the following is not required to open a Zero Balance Account?

(a) Photo

(b) Income Certificate

(c) Minimum amount of money

(d) Permanent address proof

2. Answer the following questions in one word or briefly (Alternatives are to be noted): [1 x 10 = 10]

(i) Name the economic activity of a school teacher.

Answer: A school teacher is an employee.

(ii) Define a Private Ltd. Company.

Answer: As per the provisions of Articles of Association, a company consisting of minimum 2 and maximum 50 shareholder members is called Private Limited Company.

(iii) What is Prospectus?

Answer: Before starting a public company, a document has to be filed with the registrar stating various information about the company. This written document is called prospectus.

Or, What is Articles of Association?

Answer: Under the main document of the company ‘Memorandum of Association’ is another document that records all matters related to the internal management of the company called Article of Association.

(iv) Mention one of the demerits of Co-operative Society.

Answer: An organisation requires skilled, dedicated, disciplined, sensible people to run. But there is a dearth of people with such qualities in cooperative societies.

Or, Is registration of a Co-operative Society compulsory?

Answer: There exist various types of cooperative societies. Registration of all cooperatives is not mandatory. However, if not registered, legal benefits cannot be enjoyed. So, registration of cooperative societies is compulsory to protect the interests of the members.

(v) Mention one feature of Departmental Organization.

Answer: The affairs of departmental organisations are managed and controlled under a departmental minister of the government. Therefore, the government is responsible for all the activities of this business and the concerned minister is accountable to the Lok Sabha for his actions.

Or, Give an example of Government Company.

Answer: An example of a government company is Steel Authority of India Ltd.

(vi) Give an example of Multinational Company.

Answer: An example of a Multinational Company is – Maruti Suzuki.

Or, Write the full form of ‘PPP’.

Answer: The full form of ‘PPP’ is – Public-Private-Partnership.

(vii) What do you mean by ‘Plastic Money’?

Answer: The plastic card that customers use instead of bank notes is called plastic money. E.g. Cash Card, Debit Card, Credit Card, Prepaid Cash Card, etc.

(viii) State one of the human resistances/ constraints of business environment.

Answer: Human resistance like human ignorance, illiteracy, casteism, prejudice, etc. create obstacles in business environment.

(ix) What do you mean by ‘Insurable Interest’?

Answer: The insurance contract specifically requires that the insured has an interest in the subject matter of the insurance. The interest of the insured in the subject matter of insurance is called insurable interest.

(x) State the full form of IFSC.

Answer: The full form of IFSC is Indian Financial System Code.

Or, Write the full form of NEFT.

Answer: The full form of NEFT is National Electronic Fund Transfer.

3. Answer the following questions (Alternatives are to be noted): [4 x 6 = 24]

(i) What is business risk? State, in brief, its economic causes.

Answer: Click here

(ii) Distinguish between Private Ltd. Company and Public Ltd. Company (four points).

Answer: Click here

Or, Discuss the demerits of a partnership business.

Answer: Click here

(iii) Discuss the merits of Joint venture.

Answer: Click here

(iv) Explain the importance of Bank in business.

Answer: Click here

Or, State the differences between Current Deposit Account and Savings Deposit Account (four points).

(v) State the resources required for e-business.

Or, Discuss the benefits of outsourcing.

(vi) State the various causes of environmental pollution.

GROUP – B

4. Choose the correct alternative: [1 x 8 = 8]

(i) Zero-interest bond is called as –

(a) Deep Discount Bond

(b) Convertiable Bond

(c) Callable Bond

(d) None of these

(ii) Earning of excess profit by Equity shareholders through Debt capital is called –

(a) Debt Trap

(b) Gearing

(c) Trading on equity

(d) None of these

(iii) Industrial Development Bank of India (IDBI) was established in the year –

(a) 1951

(b) 1964

(c) 1990

(d) None of these.

(iv) The main source of capital of a Small business is –

(a) Public Deposit

(b) Owner/ Owners

(c) Share Issue

(d) Debenture Issue

(v) ‘Big Bazaar’ is –

(a) Departmental Store

(b) Chain Store

(c) Share Issue

(d) Debenture Issue

(vi) The Nature of Combination of a Multiple Shop is –

(a) Lateral Combination

(b) Vertical Combination

(c) Diagonal Combination

(d) None of these

(vii) International Business is classified in ………. ways.

(a) two

(b) five

(c) three

(d) four

(viii) The International Monetary Fund (IMF) was established in the year –

(a) 1939

(b) 1942

(c) 1944

(d) None of these

5. Answer the following questions in one word or briefly (Alternatives are to be noted): [1 x 8 = 8]

(i) What is Circulating Capital?

Answer: The part of capital employed to maintain the flow and speed of the production system in carrying out the day-to-day operations of the business is called circulating capital. E.g. money spent on paying wages to workers is an example of circulating capital.

Or, What is ploughing back of profit?

Answer: Sometimes a portion of the profit is set aside to create a reserve fund. The method of using these reserve funds for capital requirements is called ploughing back of profit.

(ii) What do you mean by non-cash capital?

Answer: Any capital that cannot be quickly converted into cash is called Non-cash capital. For example – Raw materials, Stock, etc.

(iii) What is Factor?

Answer: Factors are the individuals or organisations that provide financial assistance in commercial transactions in return for brokerage.

(iv) What is Export-oriented small industry?

Answer: Those small-scale industries whose products are exported abroad are called export-oriented small industries.

Or, Mention two demerits of small industry.

Answer: Two significant demerits of small industry are –

1) In small industries, raw materials of suitable quality are not available, resulting in non-production of certain quality products and disruption of production.

2) Productivity does not increase in the absence of expert and skilled managers. Because many owners do not have prior experience in this matter. As a result, lack of efficiency in business management is observed.

(v) What is Debit Note?

Answer: The buyer sometimes returns part of the goods made to the seller. The voucher by which the buyer returns the goods to the seller is called a debit note.

Or, Mention one shortcoming of mail-order business.

Answer: A shortcoming of mail-order business is – lack of direct communication. There is no direct contact between the buyer and the seller in mail-order business.

(vi) What is the full form of NSIC?

Answer: The full form of NSIC is – National Small Industries Corporation.

(vii) What is Bill of Lading?

Answer: A bill of lading is a receipt issued by the shipping company to the exporter acknowledging receipt of the export goods and accepting responsibility for carriage of the goods.

Or, What is Certificate of origin?

Answer: A Certificate of Origin is a certificate issued in order to obtain special benefits in respect of customs duties in international trade, indicating the place of origin of the goods.

(viii) What is Convertible Debenture?

Answer: Debentures that are converted into shares at a price usually lower than market value after a specified period are called convertible debentures.

6. Answer the following questions ( Alternatives are to be noted): [4 x 2 = 8]

(i) Discuss, in brief, the role of small business in India.

Answer: Click here

(ii) Explain the drawbacks of international trade.

Answer: Click here

Or, Explain, in brief, the preparatory stage and goods sending stage of general procedure of import.

7. Answer the following questions ( Alternatives are to be noted): [6 x 2 = 12]

(i) Distinguish between ordinary share and preference share.

Or, Discuss the objectives and functions of National Industrial Development Corporation (NIDC).

(ii) What are the functions of Wholesalers.

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