AIR FORCE SCHOOL, AMBALA

Half yearly Examination 2022-23

Class XI
Subject : BUSINESS STUDIES (054)
Time Duration :3 hrs. M.M ; 80
Instructions:
(i) Q1 to 16 Carry one mark each.
(ii) 17 to 20 to carry two marks each.
(iii) 23 to 29 carry four marks each.
(iv) 30 to 32 carry six marks each

1. Which is service Industry ?

a. Clerical work in a bank c. Poultry Farm
b. Cement d. Banking
2. The oldest from of organisation of public enterprises
a. Statutory Corporation c. Government Company
b. Departmental undertaking d. Multi- National Corporation
3. In a cooperative society , the principle followed is :
a. One share one vote c. No vote
b. One man one vote d. Multiple vote
4. Match the columns :
a. It enjoys maximum autonomy in all management 1. Government
activities. Company
b. LIC and Air India are the examples of this form of 2. Statutory
enterprise. Corporation
c. This enterprise is most suitable when national 3. Departmental
security is concerned. Undertaking

5. Business Risk is not likely to arise due to

a. Changes in government policy c. Good Management
b. Employee’s Dishonesty d. Power Failure
6. Earning profits is the sole objective of Business.
a. True b. False
7. The sole proprietorship concern sinks or swims with its proprietor.
a. True b, False
8. Public enterprise are owned by the public .
a. True b, False

Read the following assertion and reason based statements carefully and choose the correct alternatives
for Q9 TO Q12:
ALTERNATIVES:
a. Both Assertion(A) and reason are true and reason is the correct explanation of Assertion (A).
b. Both Assertion (A) and reason are true but reason is not the correct explanation of assertion.
c. Assertion (A)is true but reason is false.
d. Assertion(A) is false but reason is true.
9. Assertion (A) – The Hindrance of person is removed by trade, thereby making goods available to
consumer from the possession or ownership producers.
Reason – Commerce refers to sale ,transfer or exchange of goods either physical or virtual
10. Assertion (A): In the eyes of the law , no discretion is made between the sole trader and his
business.
 Reason (R): Business does not have an identity separate from the owner. The owner is held
responsible for all the activities of the business .
11. Assertion (A)- The public sector enterprises me either be partly or wholly owned by the Central
or state government.
Reason (R)- The public sector enterprises are categorised by public ownership, public funds
being used for its activities and public accountability
12. Assertion (A)- The rate of interest on savings deposit account is more than that of fixed deposit
account.
Reason(R)- No interest is paid on current deposit accounts. Rather, the bank may change some
service charges.

CASE BASED QUESTIONS (Q13 TO Q16 ):

Raveena knows that without the service sector , the industry and trade sector could not operate
smoothly service sector helps to produce goods in time as well as helps the goods reach
consumers in time . Thus , service sector is said to be the backbone of every business and
industry . So , she has decided to work with an insurance company as a development manager.
Suraksha Insurance company has appointed her and she has successfully completed her training
for her requirement. Suraksha Insurance company is providing financial security to business and
help them to grow and expand.
13. Name the hindrance of trade removed by the insurance.
a. Person c. Risk
b. Place d. Loss
14. Identify the function of insurance related to the payment of claim for the risk of loss .
a. Protection c. Capital Formation
b. Risk – Sharing d. Providing certainty
15. The consideration charged by the insurance company for providing the certainty is called
_________________.
a. Premium c. Fees
b. Rent d. Interest
16. _______ is the person or property subject to risk.
a. Insurer c. Drawer
b. Insured d. Owner
17. Define business risks. Discuss the various causes of business risk.
18. Indian Coffee House is a restaurant chain in India. It has a strong presence across
India with nearly 400 coffee houses. These are governed by managingcommittees elected by
employees. These are completely owned and managed by employees only. These have also
received appreciation and support from Government and public. The voting rights in these are
neither tied to investment nor patronage. On the basis of the given information about Indian
Coffee House, answer the following questions:
a) Which form of Business organisations is highlighted in the above case ?
b) Discuss any two merits of the business organisations identified above.
c) Name any two types of Business Organisations identified in the part (a) above
19. Akshay is a shareholder in a company holding 2,000 shares of Rs 10 each on which he has
already paid Rs 7 per share. What will be his liability in the event of company’s failure to pay
debts ? Give reasons in support of your answer.
20. Abhishek Purohit gets his house insured against a fire for Rs 25 lakhs with insurer J and Rs 15
lakhs with insurer K. Due to outbreak of fire one night he suffered a loss of Rs 8 lakhs.
 a) How much compensation can he claim from J and K ? Why ?
b) State the relevant insurance principles in this regard.
21. Define a state Cooperative ? Write any two Limitations
22. Define a Business Service ? Discuss its features.
23. Sundar Steel Ltd. Is a leading manufacturer of iron and steel decided to open up a new branch in
a remote area in Rajasthan. So that unemployed youth from the rural areas could get same
opportunities as those available in the urban areas. All children in these families are getting good
education and these families are also actively contributing to nation building process through
their dedicated work.
On the basis of the given information about Sunstar Ltd. Answer the following questions :
a. Identify and explain the objective of business which is followed by the company.
b. Explain one another objective which the company should follow apart from objective
identified in part (a).

24. Dr. Anant Kumar is a Orthopaedic surgeon in Jaipur Golden Hospital and Dr. Sukumar Anand,
his friend is a Paediatrician who has set his own clinic. Dr. Sukumar Anand’s Wife, Ms. Sukumar
Priya Anand operates a retail store specializing in the selling of antiquities.

On the basis of the given information about different Business, answer the following questions:

a. Identify the type of economic activity undertaken by Dr. Anant Kumar, Dr. Sukumar Anand
and Ms. Sukumar Priya Anand.
b. Differentiate between them on the basis of nature, capital investment, transfer of interest.
25. Harshit runs a well known departmental store in Delhi. He procures different kinds of products
from all over the country through railways, roadways and airways. He also owns a godown to
hold the stock. He has taken an insurance policy worth Rs 10 crore for his business. Moreover, he
has taken a loan of Rs 2,00,000 from ICICI Bank in order to meet all short term needs of
Business. He has also placed information about his store on bill boards, hoardings etc. In the
context of the above information about Harshit’s Business , answer the following questions :
a. Identify the auxiliaries of trade that are being used by Harshit in his business by quoting lines
also from the above paragraph.
26. Mahesh Chandra Sharma operates a iron and steel business for last 25 years. His family is joint
and has a lot of ancestral property. All the twenty family members are a part of this business. He
is the eldest male member in the family so he heads the business. He is liable to all the creditors
of the business as he is the decision maker. Sharma’s grandson was born a few days ago and he is
also a member of the business. On the basis of the given information about Mahesh Chandra
Sharma, answer the following questions:
a. Which form of business is being undertaken by Mahesh Chandra Sharma?
b. Identify the feature of the form of Business identified in part (a).
27. Amul model has helped India to emerge as the largest milk producer in the world. More than 15
million milk producers pour their milk In 1,44,500 diary establishments across the country. The
milk is processed in 184 district establishments and marketed by 22 state marketing Federation,
ensuring a better life for millions every day. In the store of Amul started in the year 1946 with a
group of farmers coming together to gain access to the market and thereby ensure maximum
returns for their efforts.
On the basis of the given information about Amul, answer the following questions:
a) Identify the form of business organisation started by the farmers.
 b) Explain any two features of the form of business organisation identified in part (a)
c) Which and go onto the required to set up this form of business organisation?

28. Define the principles of –

a) Principle of indemnity
b) Utmost good faith
29. What is a departmental undertaking? Discuss its features.
30. Sushant is running a general store in a small shop in a premium location. The shop next door is
on sale. His friend advises him to buy the shop but Sushant does not have the necessary capital.
His friend offers him the money but Sushant is not in a position to take a loan of such a large
amount. So his friend makes a proposal where he offers to become a part owner of the business.
He also suggests that they should have written understanding where in the role of both the owner
is clearly spelt out and there is no confusion later on. After a lot of contemplation Sushant refuses
to accept his friends offer.
On the basis of the given information, answer the following questions:
a) What does “ written understanding” refer to? Explain.
b) Explain any two advantages.
c) Why do you think Sushant refuses his friends offer? Explain four reasons.
31. Maria had done diploma in fashion designing. She is very creative. She saw a picture of a party
gown in international fashion magazine having a price tag of Rs.50,000. She decided to make that
gown herself with some customisation. She calculated that for making of Gown, she has spent
Rs.4000. Her friend like the gown very much, so Swati sold that gown to her friend for Rs.8500
and made a profit of Rs.4500. Swati decided to open a boutique of selling ready-made dresses for
girls.
On the basis of the given information about Maria, answer the following questions
a) Will the transaction between Maria and her friend be termed as a business?
b) State the underlying feature of the business.
c) Explain the other features of business?
32. Define a bank. Discuss the functions of commercial bank.