March – 2024

Scheme of Valuation
Subject : BUSINESS STUDIES
Code : 27 Version : ENGLISH

Qn.
Marks
No.
PART – A
I.

1. b) Employment 1

2. b) Shareholders 1

3. c) Headquarter 1

4. d) Cellular companies 1

5. a) Fixed capital requirement 1

II.

6. Commerce 1

7. Shipping 1

8. Air Pollution 1

9. Entrepreneurship 1

10. Speciality 1
III.
a) Karta iii) Hindu Undivided Family 1
b) Plastic money i) Credit or Debit Cards 1
11. c) Prospectus iv) Public Company 1
d) Multiple Shops ii) Networks of retail shops 1
e) Import Trade vi) Bill of entry 1
IV.

12. LIC (or any other) 1

The requirement of funds by business to carry out its various
13. 1
activities is called business finance.
P.T.O.
 -2- 27

Qn.
Marks
No.
14. 2006 1
Buying and selling of goods and services within the boundaries of
15. 1
a nation are referred to as internal trade
16. Foreign Direct Investment. 1
PART – B
V.
Natural causes, Human causes, Economic causes, Other causes
17. 2
(any two)
The co-operative society is a voluntary association of persons, who
18. 2
join together with the motive of welfare of the members
i) It has a seperate legal entity apart from the Government.
19. ii) It enjoys autonomy in all management decisions and takes 2
actions according to business prudence. (or any two)
Cookies are very similar to the caller id in telephones that provide
20. telemarketers with such relevant information as : the consumer’s 2
name, address and previous purchase payment record.
Business ethics concerns itself with relationship between
21. 2
objectives, practices and techniques and the good of society.
i) Promotion
22.
ii) Incorporation (1+1) 2
* Secured Debentures
* Unsecured Debentures
23.
* Convertible Debentures
* Non-Convertible Debentures (or any two) 2
i) Cost
ii) Control
24.
iii) Risk profile
iv) Tax benefits (or any two) 2
25. Copyright, Trademark (or any two) 2

26. Chocolates, Newspaper (or any two) 2

 -3- 27

Qn.
Marks
No.
PART – C

VI.
1
i) Partnership
ii) Features : a) Formation
27. b) Liability
c) Risk bearing (or any three)
Points 2
Explaination 1
4

Merits : i) These undertakings facilitate the Parliament to exercise

effective control over their operations.
28. ii) These ensure a high degree of public accountability. (or any two) 2
Limitations : i) These fail to provide flexibility
ii) There is a lot of political interference through the ministry (or any two) 2
4

i) e-Banking 1
ii) Merits : a) e-Banking facilitates digital payments and promotes
transparency in Financial statements
29.
b) e-Banking provides 24 × 7 service
c) Customers can make some of the permitted
transactions from office or house. (or any three) 3
4
a) Ease of formation
b) Physical presence
30. c) Locational requirements
d) Cost of setting up
(or any four points with explaination) 4

a) Justification for existence and growth

b) Long-term interest of the firm
c) Avoidance of government regulation
31.
d) Maintenance of society
(or any four) points 2
Explaination 2
4
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Qn.
Marks
No.

a) The name clauses

b) Registered office clause
32. c) Objects clause points 2
d) Capital clause Explaination 2
(or any four)
4
1) Equity shares are suitable for investors who are willing to assume
risk for higher returns.
2) Payment of dividend to the equity shareholders is not compulsory.
33. 3) Equity capital serves as permanent capital as it is to be repaid only
at the time of liquidation.
4) Equity capital provides credit worthiness to the company.
4
(or any four)

a) Retained Earnings :
A company generally does not distribute all its earnings amongst
the shareholders as dividends. A portion of the net earnings may
be retained in the business for use in the future. 2
34. b) Trade Credit :
Trade credit is the credit extended by one trader to another for
the purchase of goods and services.
Trade credit facilitates the purchase of supplies without immediate 2
payment. 4

1) Finance
2) Raw materials
35. 3) Managerial skills Points 2
4) Marketing Explaination 2
(or any four) 4
1) Exporting and Importing
2) Contract Manufacturing
36. 3) Licensing and Franchising Points 2
4) Joint Ventures Explaination 2
(or any four) 4
 -5- 27

Qn.
Marks
No.
PART – D

VII.

Business is an economic activity involving the production and sale of 1

goods and services undertaken with a motive of earning profit.
Characteristics of Business :
1) An economic activity
2) Production or procurement of goods and services
37.
3) Sale of exchange of goods and services
4) Dealings in goods and services on a regular basis
5) Profit earning
6) Uncertainity of return Points 4
7) Element of risk Explaination 3
8

Merits of sole proprietorship :

2
1) Quick decision making Points
2) Confidentiality of information Explaination 2
3) Direct incentive
4) Sense of accomplishment (or any four)
38.
Demerits :
1) Limited resources Points 2
2) Unlimited liability Explaination
2
3) Limited life of a business concern
4) Limited managerial ability (or any four) 8

Commercial banks are institutions dealing in money, they accepting

deposits of money from the public for the purpose of lending or 2
investment.
Functions :
39. 1) Acceptance of deposits
2) Lending of funds
3) Cheque facility
4) Remittance of funds Points 3
5) Allied services Explaination 3
8
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Qn.
Marks
No.

Super Markets 1
Merits of Super Markets :
1) One roof, low cost
2) Central location
3) Wide selection Points 2
40. 4) No bad debts (or any four) Explaination 2

Limitations :
1) No credit Points 2
2) No personal attention Explaination 1
3) Mishandling of goods (or any three)
8

Benefits of International Business to Nations :

1) Earning of foreign exchange
2) More efficient use of resources
3) Increased standard of living
4) Improving growth prospects and
employment potentials Points 2
41. (or any four) Explaination 2
Benefits to Firms :
1) Prospects for higher profits
2) Increased capacity utilisation
3) Prospects for growth Points 2
4) Improved business vision Explaination 2
(or any four)
8