Business Studies Question Paper Solved 2017 | WBCHSE | Class 11

BUSINESS STUDIES 2017

GROUP – A

1. Choose the correct answer from the alternatives: [1 x 10 = 10]

(i) MSME means

(a) Medium, Small and Micro Enterprises

(b) Medium, Small and Minimum Enterprises

(c) Micro, Small and Manageable Enterprises

(d) Micro, Small and Medium Enterprises

(ii) According to Partnership Act, 1932, lowest number of member or partners in a partnership firm is

(a) 5

(b) 2

(c) 6

(d) 7

(iii) The minimum number of members of a private limited company is

(a) 2

(b) 3

(c) 4

(d) 5

(iv) In which year the Companies Act in India was recently amended?

(a) 2004

(b) 2010

(c) 2011

(d) 2013

(v) Which type of concern in Indian Rail?

(a) Statutory Corporation

(b) Departmental Organization

(c) Government Company

(d) Welfare Organization

(vi) What is the minimum number of members in a co-operative society?

(a) 10

(b) 5

(c) 15

(d) 20

(vii) How many banks were nationalized in the year 1969?

(a) 15

(b) 9

(c) 7

(d) 14

(viii) The Central Bank of India is

(a) Allahabad Bank

(b) SBI

(c) RBI

(d) LIC

(ix) Equity Capital is

(a) Owned Capital

(b) Loan Capital

(c) Reserve Capital

(d) Working Capital

(x) Which of the following is not the basis of business ethics?

(a) Trustworthiness

(b) To be respectful to others

(c) To do one’s own duty

(d) To consider self-interest first

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

(i) What is Industry?

Answer: The economic process by which humans collect natural resources and transform them with the help of labour and machinery to create value for human use and consumption is called industry.

Or, What is Profession?

Answer: Independent rendering of services by acquired qualifications, experience, and skills is called profession. Examples of professional persons are doctors, chartered accountants, lawyers, etc.

(ii) Exemplify a Statutory Corporation.

Answer: Life Insurance Corporation of India is an example of a statutory corporation.

(iii) What is known as Co-operative Credit Society?

Answer: A co-operative society formed under the Government Act of 1904 to provide short and long-term loans to individuals and institutions such as farmers, artisans, traders, etc., is called a Co-operative credit society.

Or, Define Company.

Answer: A company is an artificial person recognized by law having a fixed name, seal, and limited liability with transferable share capital of fixed value and perpetual succession.

(iv) What do you mean by BPO?

Answer: Business Process Outsourcing (BPO) is when an organization or company performs any part of its operations or services through a third-party company.

(v) What is the main characteristic of the Joint sector?

Answer: Joint sector enterprises are combined forms of public and private ownership. In most cases, more than 50% of ownership is held by the government.

Or, Exemplify a Joint sector organization.

Answer: An example of Joint Sector Organisation is Chennai Petroleum Corporation.

(vi) What do you mean by Cumulative Preference Share?

Answer: Cumulative Preference Shares are those shares that carry the right to receive arrears of dividend before the dividend is paid to the preference shareholders.

(vii) What is a bearer cheque?

Answer: A cheque that is immediately cashed on presentation to the bank is called a bearer cheque.

Or, What is Bank Overdraft?

Answer: In many cases, the bank contractually allows the depositor to withdraw a certain amount from his current account in excess of the deposit. The extra amount of money withdrawn is known as bank overdraft.

(viii) What is the social responsibility of business toward government?

Answer: One of the many responsibilities of the business toward government is – timely payment of taxes due to the government.

(ix) Write down two advantages of e-commerce.

Answer: Two advantages of e-commerce are –

1. It is possible to send business information quickly through the internet to remote places within the country or abroad.

2. Businesses can send commercial information over the internet at any time.

Or, Mention two disadvantages of e-commerce.

Answer: Two disadvantages of e-commerce are –

1. Participating in e-commerce requires both sellers and buyers to have good knowledge of computers and internet technology. Without technical knowledge, one cannot enjoy the benefits of e-commerce.

2. In order to develop e-commerce, expensive equipment such as computers, modems, etc. have to be purchased and installed. As a result, the initial cost of e-commerce is very high.

(x) What is meant by social responsibility of business?

Answer: Conducting business activities in accordance with generally accepted norms in society and without undermining social interests is called social responsibility of business.

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

(i) State the features of commerce.

Answer: Click here

(ii) What are the advantages of registration of partnership business?

Answer: Click here

Or, Narrate the disadvantages of Private Limited Company.

(iii) What is a Government Company? Mention two features of a Government Company.

Or, What is Departmental Organization? Mention two features of a departmental organization.

Answer: Click here

(iv) Distinguish between Life Insurance and General Insurance.

Answer: Click here

Or, Discuss the characteristics of cheque.

(v) What resources are required for the successful implementation of e-commerce?

(vi) What is meant by business ethics? Mention two advantages of business ethics.

GROUP – B

4. Choose the correct answers from the alternatives: [1 x 8 = 8]

(i) The full form of FDI is

(a) Foreign Direct Investment

(b) Federal Direct Instrument

(c) Finance Department of India

(d) Foreign Direct Income

(ii) In which year Unit Trust of India (UTI) was established?

(a) 1964

(b) 1976

(c) 1980

(d) 1986

(iii) Undistributed profit of Company is a source of

(a) External Capital

(b) Internal Capital

(c) Loan Capital

(d) Working Capital

(iv) The full form of NABARD is

(a) National Bank for Agriculture and Rural Development

(b) National Bank for Accounting and Rectification Department

(c) Natural Bank for Agriculture and Rural Development

(d) National Bank for Agriculture and Rural Development

(v) Spencers Hyper is

(a) Departmental Stores

(b) Chain Stores

(c) Multiple shops

(d) Retail shop

(vi) Debit note is prepared by

(a) Seller

(b) Customer

(c) Sales representative

(d) Insurer

(vii) The main basis of International trade is

(a) Production

(b) Trading

(c) Specialization

(d) International relationship

(viii) EU means

(a) Euro Union

(b) Europian Union

(c) Europian Unification

(d) None of these

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

(i) What is Capital?

Answer: Usually the initial cash invested by the owner to start his business is called capital.

(ii) What is Watered Capital?

Answer: The capital that cannot be seen, cannot be touched but is treated as capital is called watered capital. Such as Goodwill, morale of staff, etc.

Or, What is known as a Fictitious Asset?

Answer: Assets that cannot be seen and cannot be sold in the market are called fictitious assets. E.g. preliminary expenses.

(iii) What is Reserve?

Answer: The undistributed portion of the portion is called reserve. This reserve is reinvested in the business when required.

Or, Define Debenture.

Answer: According to section 2(12) of the Companies Act, 1956, when a company takes a loan from someone, it issues a deed in acknowledgment of the debt. This deed is known as Debenture.

(iv) Define micro-business.

Answer: Micro-business refers to businesses whose investment in machinery is less than Rs. 25 lakhs. Again, in case of Micro-businesses engaged in service activities, investment in equipment or small machinery is less than Rs. 10 lakhs.

(v) Who are Wholesalers?

Answer: Traders who buy large quantities of goods from manufacturers, and sell them at the right price and in smaller quantities to retailers are called wholesalers.

Or, Who are Retailers?

Answer: Retailers are traders who buy goods from manufacturers or wholesalers and sell them in small quantities to consumers or general buyers.

(vi) What do you mean by Internal Trade?

Answer: The process by which buying and selling are done within certain geographical boundaries of the country is called internal trade.

(vii) Give an idea of International Trade.

Answer: When the exchange of goods and services with other countries takes place across the political and geographical boundaries of a country, it is called international trade.

(viii) What is meant by Export trade?

Answer: When a country sells goods and services in excess of its own needs to other countries, it is called export trade.

Or, What is Entrepot trade?

Answer: When a country buys goods from one country and sells those goods to another country, it is called entrepot trade. It is also known as re-export trade. For example – If Bangladesh buys coal from India and sells it to Bhutan, then it is a re-export trade of Bangladesh.

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

(i) Discuss, in brief, the functions of NSIC.

Answer: Click here

(ii) What are the bases of International trade?

Or, Mention the functions of the World Bank.

Answer: Click here

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

(i) Distinguish between fixed capital and working capital.

Or, Discuss the different sources of capital.

(ii) Differentiate between Instalment system and the Hire purchase system.

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