Gurukul Global School

Session 2020-21
Term – II
Class – XI
Business Studies (054)
Date: 17-03-2021 M.M: 80
Time: 3 hrs.

General instructions:
i. This question paper contains 34 questions. Marks are indicated against each question.
ii. Answer should be brief and to the point.
iii. Answers to the questions carrying 3 marks may be from 50 to 75 words.
iv. Answers to the questions carrying 4 marks may be about 150 words.
v. Answers to the questions carrying 6 marks may be about 200 words.
vi. Attempt all parts of the questions together.

1. Risk can be minimized but cannot be eliminated. (T/F. With Reason) (1)

2. The type of retail business acts as a supplier of a wide variety of products under one roof_______. (1)

3. Preference shareholders generally do not enjoy any voting rights. (T/F) (1)

4. Match the following sources of finance on the basis of their Merits: (0.5x2=1)
i) Trade credits a) only limited amount of funds can be raised
ii) Public Deposits b) is a convenient and continuous source of funds
c) it is not having any charge on the assets of the company
d) it is difficult for the new businesses to raise the funds

5. Sukesh took the Life Insurance Policy of his wife. After one year they got divorced and after two years, his wife died in a bus
accident. Is Sukesh entitled to get compensation from the insurance company if he was paying the premium amount regularly? (Yes/No,
with reason) (1)
6. 'Ashirwad Flour Mills' gives fair remuneration to its employees. All the mill employees are happy and they encourage their friends
also to join the mill. Which values are being highlighted here? (1)

7. Identify the activities involved in various dimensions of e-business with the respective mode: (1)
a) Placing order with suppliers/Coordinating with intermediaries i) B2C commerce
b) Promotion and Delivery of products ii) Intra-B commerce
c) Recruitment, Inventory management training iii) B2B commerce

8. Sukhdev has a shop in Chandni Chowk. He keeps stock of ladies Suits of three or four manufacturers. Sulekha, Sharda and Aayat are
few of his clients to whom he sells in smaller quantities. They further sell the suits to their customers. What type of trade is Sukhdev
doing? Mention any one service that Sukhdev is giving to his clients like Sulekha. (1)

9. Rajan insured his property with two insurers, AIG Ltd. for Rs. 200,000 and Shreekrishnan General Insurance for Rs 600,000. His loss
of property actually was for Rs 400,000. What amount he can claim from both the insurers? (1)
(a) AIG Ltd- Rs 200,000 Shreekrishnan General Insurance- Rs 200,000
(b) AIG Ltd- Rs 100,000 Shreekrishnan General Insurance- Rs 300,000
(c) AIG Ltd- Rs 300,000 Shreekrishnan General Insurance- Rs 100,000
(d) AIG Ltd- Rs 280,000 Shreekrishnan General Insurance- Rs 120,000
10. The instrument issued by a company to raise funds in some foreign currency is known as ______ (1)

11. A company can commence its business after incorporation. (State T/F with reason) (1)

12. Define Partnership. (1)

13. ‘Business is undertaken with the aim of earning money.’ Which characteristic of business is highlighted in this statement? (1)

14. Chandan is a shareholder in a company holding 500 shares of Rs 10 each on which he has already paid Rs 7 per share. On winding
up, what will be the liability of Chandan? (1)

15. Quikr and OLX are examples of which form of e-business? (1)
P.T.O.
16. The earlier approach of Caveat Emptor has now been changed to________________. (1)

17. State any one merit of Retained Earnings. (1)

18. Customers are more homogeneous in their taste, preferences, consumption patterns, and buying behaviour in case of ____. (1)

19. Intellectual Property is Tangible. State true or false with reason. (1)

20. Give any two examples of contract of ‘Utmost Good Faith’. (1)

21. Name the organisation set up after the passing of a special Act by the Parliament or Legislative Assembly. Point out any three such
organisations set up in India. (3)

22. Explain the features of MODS? (3)

23. Highlight the role of Small Business in India. (3)

Or
Intricate the procedure for issue of ADRs.

24. lf registration is optional, why do partnership firms willingly go through this legal formality and get themselves registered? Explain.
(3)
25. Distinguish between fire insurance and marine insurance on the basis of: (4)
i. Indemnity ii. Insurable interest
iii. Duration iv. Loss measurement

26. ABC Trading Ltd. is a wholesaler of rice. Its financial manager Mr. X appointed an agent to procure unsecured short term finance for
the company. This loan was higher than bank interest rate but according to Mr. X its advantage was, it was free from Bureaucrat & legal
hassels. Identify the Source & Write its any three features. (4)
P.T.O.
27. "With Globalisation and Liberalisation in India after New Economic Policy 1991, international business increased manifold. The
balance of payment position which was really adverse for the country, pragmatically improved. The employment opportunities
increased. People of the country got the opportunities increased. People of the country got the opportunity to consume goods & services
of other countries." Based on the paragraph given above identify and quoting the lines from the paragraph, elaborate the benefit of
international business to the nation.
(4)

28. "Just as a human being requires food to live, similarly, a business needs profit to exist." Do you agree with this statement. Give any
three reasons to support your view. (4)

29. What do you understand by e-Business? Explain briefly any three benefits of e-Business. (4)

30. As a source of finance retained profit is better than other sources. Do you agree with this view? Give reasons for your answer. Can a
company grow indefinitely by reinvesting surplus profit? (4)
OR
Differentiate between Shares and Debentures.

31. Reader's Digest, a monthly magazine contacts its customers through advertisement in magazines. It places a post card in the
magazine itself and provides information about price, features and delivery terms etc. The customers are asked to make full payment in
advance. Which type of business is Reader's Digest following? Do you think this type of business is successful among the customers?
Comment by giving points in favour of your argument. (6)

32. Explain the important documents that have to be prepared for the incorporation of a company. (6)
33. Bhupesh owns a large scale retail outlet in a central location in Hyderabad. The outlet is divided into a number of sections and each
section deals in a particular variety of goods. There is a separate section for toiletries, fruits, vegetables, groceries, electronics and
clothing.
a) Identify the type of retail outlet highlighted in given case.
b) State three advantages and two limitations of the type of retail outlet as identified in part ‘a’ of the question. (1+3+2)

34. Elaborate various functions of Commercial Banks. (6)

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