G.D.

GOENKA PUBLIC SCHOOL, VASANT KUNJ

FIRST TERM EXAMINATION, SEPTEMBER 2021
CLASS XI
BUSINESS STUDIES (054)

TIME: 90 MINUTES MAX MARKS : 40

General instructions:
1. The Question Paper contains 3 sections.
2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.

SECTION A

Instructions: From question number 1 to 24, attempt any 20 questions.

1. Which of the following is a function(s) of a promoter ?

A. Identification of a business opportunity.
B. Fixing up signatories to the Memorandum of Association.
C. Conducting Feasibility studies.
D. All of the above.

2. Cheques which are to be deposited only in the payee's account

are_____________.
A. Order cheque
B. Blank cheque
C. Crossed cheque
D. Bearer cheque

3. _____________ is a form of business organisation in which there is

separation of ownership and management.
A. Company
B. Partnership
C. Sole Partnership
D. None of these

4. Name a self service terminal that provides bank customers with facilities
such as withdrawal and deposit of cash, fund transfers, obtaining
abridged account statements but only through a unique secure PIN.
A. ATM
B. Point of Sale
C. Pay Order

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 D. Chatbots

5. ___________ industry is an industry which is concerned with combining

various ingredients into a new product.
A. Tertiary
B. Synthetical
C. Processing
D. Analytical

6. Due to which characteristic of business, there is always a possibility of

losses being incurred, despite the best efforts put into the business:
A. Uncertainty of Returns
B. Production or procurement of goods and services
C. Economic activity
D. Profit earning

7. Which of the following is not a function of insurance?

A. Provides protection
B. Assists in capital formation
C. Enables risk sharing
D. Provides uncertainty

8. Choose the incorrect statement from the following:-

A. Business process cycle is relatively longer in traditional business
than e-business.
B. Opportunity for inter-personal touch is lesser in e-business.
C. Operating costs are lower in traditional business in comparison to
e-business.
D. Shape of organisational structure is vertical in a traditional
business due to hierarchy.

9. The person whose risk is insured is called___________. and the firm which
insures the risk of loss is known as ____________.
A. Insured, Insurer
B. Insurer, Assured
C. Insurer, Insured
D. Assurance Underwriter,Insurer

10. _______________ includes all those enterprises which are managed and
owned by individuals or groups of individuals.
A. Public Sector
B. Private Sector
C. Company
D. Cooperative Society

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11. Shares of a government company are purchased in the name of
_______________.
A. Prime Minister of India
B. President of India
C. Chief Justice of India
D. Finance Minister of India

12. Which of the following is not a characteristic of a profession?

A. Transfer of interest is possible
B. It involves rendering of personalised services
C. Limited capital is needed for establishing a profession
D. Professional code of conduct is followed

13. Which of the following can explain the need for pollution control?
A. Cost Savings
B. Reduced risk of liability
C. Reduction of health hazards
D. All of them

14. The liability of all the coparceners except the__________is limited to

their share in the business and consequently their risk is well-defined and
precise.
A. Karta
B. Partners
C. Shareholders
D. Members

15. Which of the following hindrances is removed by warehousing ?

A. Hindrance of finance
B. Hindrance of time
C. Hindrance of risk
D. Hindrance of information

16. ____________________ is a voluntary association of small independent

manufacturers who desire to sell their output through one centralised
agency.
A. Marketing Cooperative Society
B. Producer’s Cooperative Society
C. Consumer's Cooperative Society
D. Farmer’s Cooperative Society

17. Which of the following is not an advantage of e-business?

A. Convenience
B. Low Personal Touch
C. Global Reach

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 D. Customer Satisfaction

18. Which document is a subsidiary document of Memorandum of Association?

A. Prospectus
B. Consent of directors
C. Articles of association
D. Table A

19. Mr.Raghunathan suffered losses in his business due to the bursting of a

boiler in his factory. Identify the correct cause of business risk mentioned
here.
A. Natural causes
B. Human cause
C. Economic cause
D. Other cause

20. Providing accurate and up-to-date information on the financial position

of a company is a responsibility of business towards
______________________.
A. Shareholders or owners
B. Community
C. Government
D. Consumers

21. Minimum number of members to form a public company

are_______________.
A. 2
B. 7
C. 5
D. 6

22.
The CSR provisions within the Companies Act,2013 is applicable to
companies with an annual turnover of 1,000 crore and more, or a net
worth of Rs. 500 crore and more, or a net profit of Rs. 5 crore and
more.The Act encourages the companies to spend _________ of their
average net profit in the previous three years on CSR activities.
A. 2%
B. 3%
C. 5%
D. 4%

23. According to the section 2(45) of the Companies Act, 2013, a ___________
company means any company in which not less than 51 percent of the
paid up capital is held by central government, or by any state

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 government, or partly by central government and partly by one or more
state governments and includes a company which is a __________ this
company.
A. One Person Company; part
B. Government Company; subsidiary
C. Public Limited Company; part
D. Private Limited Company; affiliated

24. Which of the following variants of e-commerce enables a business to be in

touch with the customer on round the clock basis?
A. B2B
B. Intra B
C. B2C
D. C2C

SECTION B

Instructions: From question number 25 to 48 , attempt any 20 questions.

25. "Business institutions have valuable financial and human resources which
can be effectively used for solving problems of the society." Which
argument in favour of social responsibility is reflected in the given
statement?
A. Justification of existence and growth
B. Long term interest of the business firm
C. Availability of resources with business
D. Converting problems into opportunities

26. Identify the incorrect statement:-

A. Assembling industry assembles different components to make a
new product.
B. Business includes two broad categories- industry and commerce.
C. Traders serve as a link between producers and consumers.
D. External trade is purchase and sale by traders in
the same country.

27. Which of the following is not a privilege enjoyed by a private limited

company ?
A. There is no need for a private limited company to issue a
prospectus
as the public is not invited to subscribe to the shares of a private
company.
B. Private limited company can start business as soon as it receives
the Certificate of Incorporation.
C. A private company is required to keep an index of members.
D. A private company needs to have only two directors

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 and can be formed by only two members.

28. ____________ is a technology through which employees can access an

organisation's network and can work from anywhere through a computer
network.
A. Virtual Private Network
B. Electronic Fund Transfer
C. Electronic Data Interchange
D. Electronic Clearance Service

29. Mr. Mehra, a businessman, has a current account in Punjab National

Bank(PNB). His current account shows a balance of ₹ 60,000. He urgently
needs money to pay ₹ 70,000 to his creditors.He approaches PNB to allow
him to withdraw ₹ 70,000, using the facility extended by the bank to him
due to his credit worthiness. The bank agrees to it. Identify the facility
which has been provided by the bank to Mr. Mehra.
A. Bank Overdraft
B. National Electronic Funds Transfer
C. Multiple Option Deposit Scheme
D. None of these

30. Manoj took a marine policy worth ₹ 2,00,000 to protect his goods from
the perils of the sea. On the way, the goods were spoiled by rats.He
suffered a loss of ₹ 1,25,000.He filed a claim for the loss against the
insurance company. He could not recover the amount from the insurance
company. Which principle of insurance is highlighted in the given case?
A. Principle of Subrogation
B. Principle of Indemnity
C. Principle of Utmost Good Faith
D. Principle of Proximate Cause

31. Shweta took an advanced fashion designing course at Pearl Academy to

become a fashion designer. After completion of the course, she got a job
at Trendz Fashion Private Limited. She used her expertise to design
modern outfits, which became famous overnight. Identify the type of
economic activity that Shweta was engaged in.
A. Employment
B. Profession
C. Business
D. All of the above

32. Name the account, in which a certain fixed amount is deposited every
month for a specified period and the total amount is repaid with interest
at the end of a particular fixed period.
A. Current Account
B. Recurring Deposit Account

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 C. Multiple Option Deposit Account
D. Fixed Deposit Account

33. Assertion(A)-Social responsibility is broader than legal responsibility of

business.
Reason(R)- Social responsibility involves social obligations of business
which are covered by law.
A. Both (A) and ( R ) are correct.
B. (A) is correct and ( R) is incorrect.
C. Both (A) and ( R) are correct, and R is the correct explanation of A.
D. Both (A) and ( R) are correct, and R is not the correct explanation
of A.

34. Identify the incorrect feature related to a Departmental Undertaking :-

A. It is the oldest and most traditional form of public enterprise.
B. The employees of this enterprise are government servants.
C. This enterprise is not suitable where national security is concerned.
D. The revenue earned by this enterprise is a source of income for the
Government.

35. Assertion (A)- If the business fails, the creditors can recover their dues
from the personal property of the owner in case of a sole proprietorship
business.

Reason (R) - Sole Proprietorship business ceases to exist in the event of

sole proprietor’s death.
A. Both (A) and ( R ) are correct.
B. (A) is correct and ( R) is incorrect.
C. Both (A) and ( R) are correct, and R is the correct explanation of A.
D. Both (A) and ( R) are correct, and R is not the correct explanation
of A.

36. ____________ is ascertained by comparing the value of output with the

value of inputs and is a measure of efficiency in an organisation.
A. Market standing
B. Productivity
C. Innovation
D. Manager Performance & development

37. ___________ is any document which includes any notice, circular,

advertisement or other document inviting deposits from the public for the
subscription or purchase of securities of a body corporate.
A. Statement in lieu of Prospectus
B. Prospectus
C. Certificate of Incorporation

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 D. Statutory Declaration

38. Securities and Exchange Board of India (SEBI) is the regulatory body for
securities and commodity markets in India .Which kind of form of Public
Sector Enterprise is this organisation?
A. Departmental Undertaking
B. Statutory Corporation
C. Government Company
D. None of these

39. Assertion(A)- The principle of "one man one vote" governs a cooperative
society.
Reason(R)- Right to vote given to the members lends the cooperative
society a democratic character.
A. Both (A) and ( R ) are correct.
B. (A) is correct and ( R) is incorrect.
C. Both (A) and ( R) are correct, and R is the correct explanation of A.
D. Both (A) and ( R) are correct, and R is not the correct explanation
of A.

40. Business activities such as ___________ and _____________ are known to

be the most critical sources of environmental pollution problems.
A. Production, Distribution
B. Banking, Courier services
C. Telecommunication, Information Technology
D. Advertising, Sales Promotion

41. Which of the following is not a limitation of a Departmental Undertaking?

A. There is a lot of political interference through ministry.
B. It is sensitive to consumer needs.
C. There is red tapism in day-to-day operations.
D. It is unable to take advantage of business opportunities.

42. An old customer has sold his used refrigerator to another customer
through OLX.It is an example of _______ commerce.
A. B2B
B. B2C
C. C2C
D. Intra B

43. Which of the following documents is not required to be filed by a public

company during the stage of incorporation ?
A. Written Consent of proposed directors
B. Notice of the exact address of the registered office
C. Agreement with the Managing Director
D. Statement in lieu of prospectus

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44. Aakash Private Ltd.opened a new branch in Bangalore. It is fulfilling which
of the following organisational objective:-
A. Survival
B. Profit Making
C. Growth
D. Innovation

45.
Hindustan Unilever Limited works on the basis of USLP (Unilever
Sustainable Living Plan). The plan was launched in 2010 and is creating
sustainable growth through the company’s world-famous brands. The aim
of the plan is to help more than a billion people take action to improve
their health and wellbeing and to reduce the environmental footprint of
its products.Towards which interest group,is the company discharging
social responsibility?

A. Workers
B. Community
C. Government
D. Owners

46. The government departments and regulatory authorities are allowing

e-filing of reports and returns. E-business tools are affecting the
administrative reforms aimed at speeding up the process of granting
permissions, approvals and licenses.The following importance of
e-business is mentioned here:-
A. Competitive advantage over competitors
B. Ease in formation
C. Lower investment requirements
D. Movement towards a paperless society

47.
Arrange the last four steps of the capital subscription stage of a company
in the correct sequence:-
(i) Minimum subscription
(ii) Allotment of shares
(iii) Application to stock exchange
(iv) Appointment of bankers, brokers & underwriters

Choose the correct option:-

A. (iv); (i); (iii); (ii)
B. (i); (iv); (iii); (ii)
C. (iii); (i); (ii); (iv)
D. (iv); (ii); (iii); (i)

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48. Which of the following does not explain the role of a business enterprise
towards environmental pollution ?
A. A definite commitment by top management of an enterprise to
pollute the environment.
B. Ensuring that the commitment to environmental protection is
shared throughout the enterprise.
C. Developing clear-cut policies and programs for purchase of good
quality raw materials.
D. Complying with the laws and regulations enacted by the
government.

SECTION C

Instructions: From question number 49 to 60 , attempt any 10 questions.

Read the following text and answer question number 49-52 on the basis of
the same.

Pritam took a fire insurance policy for her property worth ₹ 5,00,000
with two insurers- Bajaj Allianz General Insurance for ₹ 4,00,000 and Acko
General Insurance for ₹ 2,00,000. An electronic short circuit in his
property caused fire and it resulted in a loss of ₹ 1,50,000. He filed a
claim for ₹ 1,50,000 against each of the companies.

49. Can Pritam recover ₹ 1,50,000 from each of the insurers?

A. Yes, it’s possible
B. No, it’s not possible
C. ₹ 75,000 from each of the companies
D. None of these

50. Which principle of insurance is applicable in this case study?

A. Principle of Mitigation
B. Principle of Contribution
C. Principle of Subrogation
D. Principle of Indemnity

51. The liability of Bajaj Allianz General Insurance is___________.

A. ₹1,20,000
B. ₹1,30,000
C. ₹1,00,000
D. ₹1,10,000

52. The liability of Acko General Insurance is________________.

A. ₹30,000
B. ₹50,000

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 C. ₹40,000
D. ₹20,000

53. Palm Pvt.Ltd., the famous group of promoters submitted an application to

the registrar of the company for the approval of the name for shoe
manufacturing company. They chose 'Niky Ltd' as the name of the
company so as to increase the sales because Nike was a well known and
well established brand. Would the proposed name be accepted by the
registrar? Why?
A. Yes, the name of the company is not misleading.
B. No, the name of the company resembles the name of an existing
company.
C. Partly acceptable, as the name of the company is undesirable.
D. None of these.

54. Airtel is a big company providing telecom services to millions of people in

India. Similarly,BSNL also provides telecom services to many people. The
Government of India is holding 100% of the share capital of BSNL, whereas
Airtel is not under the direct control of the Government. Identify the
correct sectors in which Airtel and BSNL are working respectively.
A. Public Sector, Private Sector
B. Joint Sector, Private Sector
C. Private Sector, Public Sector
D. Joint Sector, Public Sector

55. Akash Enterprises Limited is a leading business organisation in the field of

electronics. It has various departments such as Research and
Development, Purchase department, Production department and
Finance department. A mail was sent by the purchase department to the
production department. This is an example of ________________.
A. B2B
B. B2C
C. C2C
D. Intra B

56. Shivam is a shareholder in a company holding 6000 shares of ₹ 10 each on

which he has already paid ₹ 7 per share. What will be his liability in the
event of the company's failure to pay debts?
A. ₹ 18,000
B. ₹ 12,000
C. ₹ 16,000
D. ₹ 6,000

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57. Edus Private Ltd. invited the general public to subscribe for its shares of ₹
100 crores through an initial public offer. The company received
applications for shares ₹ 85 crores. The company cannot proceed with the
allotment of shares. As per the SEBI guidelines, the company must
receive a minimum subscription of ____________ against the entire issue
before making any allotment of shares to the public.
A. ₹ 80 crores
B. ₹ 90 crores
C. ₹ 85 crores
D. ₹ 95 crores

58. Mahesh, Shyam and Ram mutually decided to start a partnership business
of manufacturing kids garments. They also decided that Mahesh’s
association with the firm will not be revealed to the general public.
Shyam will take an active part in carrying out the business of the firm,
while Ram will not take part in the day-to-day activities of the business.
Identify the various types of partners which are being highlighted in the
given case.
A. Mahesh- Secret partner; Shyam- Active partner; Ram-Sleeping
partner.
B. Mahesh- Nominal Partner; Shyam- Active partner; Ram-Sleeping
partner.
C. Mahesh- Secret partner; Shyam- Active partner; Ram- Partner by
holding out.
D. Mahesh- Secret partner; Shyam- Partner by holding out;
Ram-Sleeping partner.

59. After completing his graduation, Vinod decided to start trading in

chocolates. He deals in the purchase of chocolates from Switzerland and
sells them to Bangladesh and Nepal. Identify the type of trade highlighted
in the given case.
A. Import Trade
B. Export trade
C. Entrepot trade
D. Wholesale trade

60. Mr. Rawal has a current account in State Bank of India. On Monday, i.e.
the 20th of September,2021, he asked the bank manager to transfer ₹
40,000 to his client. This transaction was done by the bank branch in
batches. Two days later, i.e. on the 22nd September,2021, he requested a

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transfer of ₹ 2,30,000 without any waiting time. Identify the concept of
funds transfer, being followed on the 20th of September and on 22nd
September,2021 by the bank.
A. National Electronic Funds Transfer,Real Time Gross Settlement
B. Bank Draft, Pay Order
C. Render True and General Services,E-banking
D. Real Time Gross Settlement, National Electronic Funds Transfer

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