SET -2

SAI International School 0111100

Practical Examination
Subject – BUSINESS STUDIES
Class – XI
Answer All questions:

1. Identify the sources of finance in the following cases: (5 Marks)

(a) lt is a source of finance which converts the value of purchases into trade payables.
(b) Shareholders agree to provide capital by way of accepting lower returns out of
profits.
(c) The type of debentures who enjoy fixed returns with an option of becoming
shareholders.
(d) Shares which have a fixed rate of return but have the option of participating in
profits.
(e) owners of capital with preferential rights.
(f) Provides an option to companies to use fixed assets without the burden of
replacements or obsolescence.
(g) It is a short-term source can be issued only by financially sound and highly credit
worthy firms.
(h) It provides an option to raise funds in American currency.

(i) It provides the long-term funds without diluting control of funds but may have control
over usage of fixed assets.
2. Reema received Rs.1,00,000 from her parents as a gift. She is planning to invest the
entire amount but wants her money to be safe and secure. Advise her about the various
options where she can invest her money. (5 marks)
3. Discuss the two problems of small industries. (2 Marks)
4. Explain the services offered by wholesalers to manufactures. (3)
5. Discuss any three advantages of international business. (3 Marks)