S.D. Memorial Sr. Sec.

School, Gurugram
Unit Test-I, May’24
Subject – Business Studies
Class-XI M.M. - 40
Time - 1.5 Hrs. Set-1
General Instructions:
a) The paper comprises of three sections.
b) All the sections are compulsory to attempt.

SECTION-A (1*10=10)

Q1. If registration is optional, why do partnership firms willingly go through this legal
formality and get themselves registered?

Q2. How can one identify from the name of the company that whether it is a private company
or a public company?

Q3. XYZ Ltd. is planning to give more and more job opportunities to women. Which
objective is it trying to achieve? Mention one more example of same objective.

Q4. What is meant by Statutory Declaration?

Q5. Is the secrets maintains in a partnership firm? Comment on it.

Q6. Mention any one function of credit cooperative society.

Q7. What is the main objective of employment?

Q8. Give an example of activity, which is economic in one sense and non-economic in other
sense.

Q9. Why Memorandum of Association is called as doctrine of outdoor management?

Q10. Cyclone caused lots of damages to the street vendors and retail stores in the state.
Rahim, owner of a Grocery Shop suffered a lot because of cyclonic effect. Government
declared a relief package to the affected people of the affected areas. Identify the type of
risk caused to the shopkeepers highlighted in the above case.

SECTION-B (3*6=18)

Q11. Explain any three features of a Joint Stock company.

Q12. Sarika is running an organic store under the brand name, Earth in a popular market in
Dehradun. She acknowledges that risks in her business cannot be predicted with utmost
accuracy as business environment is dynamic in nature. Therefore, it is not possible to
predict future events with accuracy like, changes in consumer preferences, increase in
competition, natural calamities etc. Also, she feels that the risks in business can be
minimised, but cannot be eliminated altogether. As her business is operated at a small
scale she feels her quantum or risk is relatively low. At the same time she truly believes
in the saying that no risk, no gain is applicable to all the business oraganisations.
Identify and explain the various characteristics of business risk being described in the
above paragraph.

Q13. Explain the role of profit in business.

Q14. What do you understand by prospectus? What are its essential elements?

Q15. Distinguish between profession and employment

OR
Explain Primary industry with its different types.

Q16. Pawan bought a readymade dress for Rs.5000.His friend liked the design of dress very
much, so Pawan sold the same dress to his friend for Rs. 5,500 and made a profit of Rs.
500. After completing his studies Pawan opened a shop of selling readymade dresses for
girls.
a) Can transaction between Pawan and his friend be termed as business?
b) Explain the feature related to part (a).

SECTION-C (4*3=12)

Q17. “Commerce is considered as a backbone of industries.” Do you agree? Justify your

statement by giving suitable points.

Q18. Arihant has started his own coaching centre after retirement. He is very happy doing
this business as he can carry out his plans without any interference from others and
moreover, there is no separate law that governs his business. In the context of the above
case:
a) Identify and explain the form of business organization under which Arihant has
promoted his business.
b) State any three merits of form of business organization as identified in part (a) of the
question which have not been mentioned in above para.
Q19. Explain the following clauses of memorandum of association:
a) Name Clause
b) Subscription Clause
OR
Explain the steps of Incorporation stage of formation of company.