Business Studies

Final Examination (2016-17)

Class XI

Time: 3hrs M.M:90

Q.1 Why is ethical business considered to be a good business? (1)

Q.2 Which document is filed with the Registrar of Companies within 30 days of allotment? (1)

Q.3 The funds required to purchase fixed assets like land building, plant and machinery, furniture
etc. refer to which type of capital requirement? (1)

Q.4 Name the marketing function which is concerned with informing the customers about the firm’s
products. (1)

Q.5 How can a business avoid the problem of government intervention? (1)

Q.6 What are second Debentures? (1)

Q.7 Utkarsha purchased an electric iron. The iron stopped functioning within one week of
purchase. The retailer of the shop expressed his inability to exchange the product as the sale
had already taken place.

Which concept of marketing is followed here? (1)

Q.8 Which source of business finance does “self-financing” indicate? (1)

Q.9 Differentiate between shares and debentures on the following basis:

a) status of the holder b) charge on the assets c) restriction on issue at discount (3)

Q.10 A recent cut in the rate of interest on loans announced by the banks encouraged Amit, a
science student of a school, to take a loan from State Bank of India to experiment and develop
cars to be powered by fuel produced from garbage. He developed such a car and exhibited it
in the science fair organized by education department, where he was awarded first prize for his
invention.
Identify and explain the dimensions of business environment discussed in the above case.(3)
Q.11 What are the preferential rights enjoyed by preference shareholders? Explain. (3)
Q.12 If this principle is violated ‘Authority is undermined, discipline is in jeopardy, order disturbed
and stability threatened’.
Identify and explain the principle of management discussed here. (3)
Q.13 Differentiate between Owner’s funds and Borrowed funds on the following basis:
a) fixed obligations b) permanence c) security of assets (3)
Q.14 Fireworks Ltd., a cracker manufacturing company launched a new product for Diwali which
attracted many buyers. Although the product was in great demand, appropriate safety
 warnings were not mentioned on packets that led to many accidents. The company was also in
the news for employing children for nearby villages.
a) Identify the element of Marketing Mix here.
b) Identify any two values which were violated by the company. (3)
Q.15 What are the responsibilities of business towards government and community? (4)
Q.16 Identify the type of dimension of environment to which following are related:-
a) A cut in the repo rate by the Central Bank of a country.
b) Increase in the number of working women in a country.
c) Making of various payments by means of internet banking.
d) Prohibition on the sale and purchase of alcohol by the govt. (4)
Q.17 Ms. Neeru and Mr. Sunil both were employed in a multinational company at the same level
from the same date. Both proved to be hardworking for the organization and their boss was
also happy for their work, who treats them equally. After two years, at the time of performance
appraisal the performance of Ms. Neeru was just better than Mr. Sunil. Even then their boss
decided to promote Mr. Sunil to the higher post stating that only one post was available and
being a female Ms. Neeru, will not be able to handle the complications of a higher post right
now.
(a) Identify and explain the principle of management which was not followed by the boss of Ms.
Neeru and Mr. Sunil.
b) Also mention one effect of the violation of the above identified principle. (4)
Q.18 ‘Branding adds to cost i.e., the cost of packaging, labeling, legal protection and promotions.
However, it provides several advantages to the sellers as well as the customers’.
Do you agree? State any three reasons in support of your answer. (4)
Q.19 Explain any four basic elements of Business Ethics. (4)
Q.20 Explain any five important documents that are required to be submitted to the Registrar for
obtaining the certificate of incorporation. (5)
Q.21 What were the main features of the Industrial Policy Resolution 1991? (5)
Q.22 Mr. Sam was running an enterprise comprising of over hundred people in all, working at
various levels. It does have a chain of authority and communication that is followed by
managers and the subordinates and it is not violated in the normal course of communication.
But in case of emergency, a worker is permitted to contact another worker of same level
directly.
(a) Identify and explain the principle of management discussed above.
(b) In which type of communication the above identified principle should not be violated in the
normal course?
(c) In case of emergency how a worker can contact another worker at the same level? (5)
Q.23 ‘Though advertising is one of the most frequently used media of promotion of goods and
services, yet it attracts lot of objections’. In context of the statement explain the objections
related with advertising. (5)
Q.24 Explain all the steps required to be taken for raising funds from the public by a company.(6)
Q.25 ‘A good understanding of environment by business managers enables them not only to identify
and evaluate but also to react to the forces external to their firms’.
In the light of the above statement explain the importance of understanding business
environment by a manager. (6)
Q.26 Differentiate between the contributions made by Fayol and Taylor in the field of management.
Also mention the basis of your differentiations. (6)
Q.27 What are the factors to be kept in mind while determining the price of a product? (6)
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 Marking Scheme
A.1 It improves public image, earns people’s confidence and trust, develops a culture of caring for
society & environment. (1)

A.2 Return of Allotment. (1)

A.3 Fixed Capital Requirement. (1)

A.4 Promotion. (1)

A.5 By assuming Social Responsibility. (1)

A.6 The dentures which are paid after the first debentures have been paid back are called second
debentures. (1)

A.7 Selling Concept. (1)

A.8 Retained Earnings. (1)

A.9 a) Owners vs creditors.

b) Shares are not secured against any charge on the assets vs Non-convertible debentures
issued for a period exceeding 18 months are always secured against charge.

c) Section 79 imposes restriction vs there is no restriction. (1+1+1)

A.10 Dimensions: i) Economic ii) Technological iii) Social. (1+1+1)

A.11 a) Rate of dividend b) Return of Capital (1½ +1½)
A.12 Identification and Explanation of Unity of Command. (1+2)
A.13 a) does not involve vs it involves.
b) permanent capital vs not permanent.
c) does not require vs requires security. (3)
A.14 a) Product Mix.
b) Two values: i) violation of law by employing children and by not giving required information
on label. ii) insensitivity towards health of consumers. (1+2)
A.15 Any two Responsibilities each:
a) towards government b) towards community (2+2)
A.16 a) Economic b) Social c) Technological d) Political (1+1+1+1)
A.17 a) Equity (principle) with explanation.
b) any one point of violation. (1+2+1)
A.18 a) Yes, I agree
b) Any three of the following:
i) helps in product identification
ii) ensures quality
 iii) status symbol
iv) helps in advertising and display programs (1+3)
A.19 Any four of the following:
a) Top management commitment
b) Publication of Code
c) Establishment of Compliance Mechanisms
d) Involving Employees at all levels
e) Measuring Results (4)
A.20 Any five of the following:
a) MOA
b) AOA
c) Consent of Proposed Directors
d) Agreement
e) Statutory Declaration
f) Payment of Fee (5)
A.21 Explanation of any five features. (5)
A.22 a) Scalar Chain with explanation.
b) Formal communication/ communication that runs from top to bottom.
c) Gang Plank. (1+2+1+1)
A.23 a) Adds to cost
b) Undermines Social Values
c) Confuses the buyers
d) Encourages sale of inferior products
e) Some ads are in bad taste (5)
A.24 a) SEBI approval
b) Filing of prospectus
c) Appointment of Bankers, Brokers and Underwriters
d) Minimum Subscription
e) Application to Stock Exchange
f) Allotment of shares (6)
A.25 Explanation of all the six points of importance of study of Business Environment. (6)
A.26 POD:
a) Personality
b) Known as
 c) Expression
d) Basis of information
e) Area of Study
f) Focus (6)
A.27 Factors:
a) Product Cost
b) Utility and Demand
c) Extent of competition in the market
d) Government and legal regulations
e) Pricing objectives
f) Marketing methods used (6)
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