VISHWA BHARTI PUBLIC SCHOOL

SESSION: 2018-2019
RE-TEST
SUBJECT: BUSINESS STUDIES
CLASS: XI

Date:
Time allowed: 3 Hrs. M.M.: 80 Marks
General Instructions:

 All questions are compulsory.

 Question Nos. 1 to 8 are very short answer type questions of 1 mark each.
 Question Nos. 9 to 14 are of 3 marks each. Answer to these questions should not exceed 75 words.
 Question Nos. 15 to 19 are of 4 marks each. Answer to these questions should not exceed 100 words.
 Question Nos. 20 to 23 are long answer type questions of 5 marks each. Answer to these questions should not
exceed 150 words.
 Question Nos. 24 to 27 are essay type questions of 6 marks each. Answer to these questions should not
exceed 200 words.

1. Tripti is the biggest cardiologist of her town. Identify the type of economic activity highlighted in the
given case.

2. Shivpal is a fisherman in Kerala and owes six fishing vessels. Identify the form of industry in which he
operates.

3. Megha has completed her MBA from IIM Ahmedabad. Soon after her studies, she married into a
conservative Gujarati Family. Her family was not supportive of women venturing out for a job.
However, being of an entrepreneurial nature, she convinced her father-in –law Mr. Thakkar to start a
share broking firm. Mr. Thakkar was totally unaware of the working of the stock market, so, Megha
dealt with all the customers. A customer came, asking them to invest Rs. 10,000 in preference shares
of Reliance Company. Megha dealt with him, assuring that needful will be done. Another customer
came with instructions that Rs. 25,000 should be invested in equity shares of Tata Limited. After the
customer’s departure, Mr. Thakkar asked Megha about the differences between equity shares and
preferential shares. Megha replied, “The holder of preference share enjoyed certain preferential
rights”. What preferential rights are enjoyed by preference shareholders over equity shareholders?

4. Malti sells small kitchen utensils in Lakshmi Nagar, every Tuesday. Which type of trader is Malti?

5. For a trading business, state whether the requirement of fixed capital will be higher or lower.
6. Give a point of distinction between ownership capital and borrowed capital.

7. In India, every major state has its own chamber of commerce like Delhi chamber of Commerce, Gujarat
Chamber of Commerce, etc. All these Chambers of commerce are members of which national body?

8. What is the main objective of Export promotion Councils?

9. “Profit plays an important role in business.” Give any three reasons to justify the statements.

10. Why was national renewal fund (NRF) established? Identify the value that the government wants to
communicate by establishing NRF.

11. Siddhartha Basu is a senior manager in Alpatec limited. While returning home from a late night
meeting, he met with an accident, and sustained a leg fracture. He was advised bed rest for one
month. Which modern technology will help him to work from his home?

12. Explain how public sector unit helped to promote regional balance in the country and to check
concentration of economic power. What values are taken care of by a business by fulfilling its
responsibility towards consumers?

13. State the features of cottage industries?

14. How does the wholesaler help the manufacturer in availing the economies of scale?

15. Divij and Adhiraj are twin brothers. After completing their MBA from Symbiosis, Pune, they decided to
start their own business, which will work as an ancillary unit of Tata motors. They decide to start their
factory on a piece of land which is owned by their father. Now, they are confused whether to start
their business as a joint Hindu family business or a partnership business. As an expert enumerate the
difference between these two forms of business organizations.

16. Being a consumer, list certain responsibilities that you expect from a businessman.

17. Give two examples each of expenditure that gives the benefit which pertains to

(i)Short- term (ii) Medium- term (iii) Long –term

18. Explain the meaning of the following documents used in connection with import transactions
(i) Trade enquiry (ii) Import license (iii) Shipment advice (iv) Bill of entry

19. Briefly explain any four characteristics of international trade.

20. Mr. Krishan Lal Batra has retired from a government job and is now a pensioner. He is quite worried
about his son Satpal Batra, who is not able to find a suitable job. Even if he finds a job, He is not able to
hold on it. Mr. Batra’s nephew runs a successful business. He advises his uncle to open a sole-
proprietorship firm for Satpal.
 (i) Define sole proprietorship.
(ii) Explain briefly any four features of sole proprietorship.

21. In the back drop of demonetization, the importance of e-banking has increased tremendously. Explain
briefly any four services covered by e- banking. Also identify the value communicated by the
government by demonetizing the economy.

22. Briefly discuss any five limitations of multiple shops.

23. Explain briefly the various problems related to international trade.

24. Nitin, Siddhartha and Saurabh are planning to enter into partnership business which deals in sanitary
ware. Their legal advisor, Mr. Dinesh advises them to get the partnership registered.
(i) In your view, is the registration of partnership firm compulsory?
(ii) Why, according to you, Mr. Dinesh is advising the clients to get their firm registered?

25. The railway is the form of public sector enterprise which operates under the control of the railway
ministry. Identify the role of public sector enterprise and explain briefly the five limitations of such an
enterprise.

26. Define business ethics and briefly explain any five elements of business ethics.

27. The directors of Twinkle Limited have decided to modernize the plant and machinery at an estimated
cost of rupee one crore, so that they can provide better quality products to their customers at
reasonable price. Their finance manager has advised them to issue debentures for this purpose.
(i) What are debentures?
(ii) Explain any two merits and any two demerits of raising finance through issue of debentures?