LOTUS VALLEY INTERNATIONAL SCHOOL, NOIDA

PERIODIC TEST-II (2023-2024)

SUBJECT- BUSINESS STUDIES (054)
Name: _______________ Roll No.: __________ Date: 13th Otober,2023
Duration: 1 hour Class XI Sec: Max. Marks: 30

 This question paper has 4 printed sides.

 There are 13 questions in this question paper.

Q1. Sampoorna Pvt. Ltd. is keen to share technical information and experience 1
with suppliers, dealers and customers to get them actively involved in
pollution control programmes.
Identify the step, in which it is interested in environmental protection.
a) Arranging pollution control workshops
b) Assessing pollution control programmes
c) Participating in environmental protection related government
programmes
d) Complying with the government laws

Q2. Match the column and choose the correct alternative: 1

Column I Column II
A) Paying attention to values i) Measuring results
and ethics in recruiting and
hiring
B) Monitoring compliance ii) Code of ethics
with ethical standards
C) These are in the form of iii) Involving employees at
written document all levels
D) Small group of employees iv) Establishment of
is formed to discuss compliance mechanism
important policies on
ethics

a) A-i ; B-iii; C-ii; D-iv

b) A-ii; B-i ; C-iii; D-iv
c) A-iv; B-i ; C-ii ; D-iii
d) A-i ;B-ii; C-iii; D-iv

Q3. Shuzuka , after acquiring a degree in Hotel Management and Business 1

Administration took over her family food processing company of
manufacturing pickles, jams and squashes. The business was established by
her great grandmother and was doing reasonably well. She wanted to
undertake modernization of the existing business for which she had a
meeting with her Finance Consultant. He told her that approximately Rs.50
lakhs wee required for undertaking the modernization programme. He also
explained her that the stock market was going through a bullish phase.
Keeping the above considerations in mind , name the source of finance ,
shuzuka should choose for modernization of her business.

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 a) Retained earnings
b) equity
c) debt
d) none of these

Q4. Cheetah express specializes in Courier Services. Its wide range of express 1
package and parcel services help business firms to ensure that the goods are
made available to the customers at the right place and at the right time.
The working capital requirements of Cheetah express will be:
a) high
b) low
c) nil
d) none of these

Q5. Read the following statement carefully and choose the correct alternative: 1
Statement I: Debentures are burden on the earning of the company.
Statement II: Debentures increase the obligation of payment and interest
specially in the event of losses.
a) Statement I is true and II is false
b) Statement II is true and I is false
c) Both the statements are false
d) Both the statements are true

Q6. Which of the following is not true in case of debentures: 1

a) It is an instrument to raise long term debt capital
b) Payment of interest on debentures is compulsory
c) Debenture holders carry voting rights
d) Issue of debentures creates a charge on the assets of the company

Q7. Read the following statements carefully -Assertion A and Reason R and 1
choose the correct alternative:
ASSERTION (A): The only obligation of a business towards its employees
is to pay them well so that they work to their maximum capacity.
REASONING (R): A business also provides services benefit such as medical
facilities, education to children, etc. It should also provide good working
conditions to their employees.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of the Assertion (A).
b) Both Assertion (A) and Reason (R) are true but Reason(R) isnot the
correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.

Q8. The Yamuna river, often called Delhi’s lifeline, is gasping for life. The 22 3
Km stretch along the National capital has virtually no aquatic life as drains
pour untreated sewage and other waste into the river. Experts say, factors
like river basin degradation, ecological pollution , solid/ liquid waste
pollution and encroachment on riverbed have all combined to kill Yamuna’s
aquatic life. The vegetables grown on the land of such water have posed the

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 threat of cancer.
The Delhi government has come up with the plan to implement ethical code
of conduct for polluting units and construct a panel parallel to the river to
restrict sewage to flow into it.
a) Identify and explain the element of business ethics implemented by
the government.
b) Name the group towards whom the responsibility is not being
fulfilled by the units and residential areas near the river.

Q9. A source has certain characteristics of both equity shares and debentures. 3
a) Identify the source.
b) State the two distinguishing characteristics of the source identified
above.

Q10 Reliance Foundation contributes to the well being of people introducing 3

sustainable measures and providing assistance to institutions and welfare
.
organisations, across India, impacting the lives of marginalized communities.
Through Reliance Foundation their initiatives have touched over 69.5
million lives since inception.
a) Identify the concept referred to in the above case study.
b) Mention any two arguments in favour of concept identified in a).

Q11 Ecobuzz, a reputed paint manufacturing unit, needs funds to meet its day to 4
day expenses like wages, rent, maintaining stock of raw material, etc. The
.
owner approaches its raw material supplier to give them credit for two
months, so that he can get ingredients for paints without making immediate
payment. The supplier made an enquiry regarding Ecobuzz, and found that
his reputation of giving payment is not very good. In the past, the lenders
were not very happy.
a) Identify the source of finance that Ecobuzz is trying to get in the
above case? Explain
b) Should the raw material supplier grant credit to Ecobuzz? Why/ why
not?

Q12 Explain the social responsibility of business towards the various interest 4
groups.
.
Q13 Khali Industies Ltd. manufactures heavy machines for small scale enterprises (2+4)
in India. It enjoys excellent earnings with sound capital structure position in
.
the industry. Capital employed of the company consists of Rs.50 crore as
equity and Rs.20 crores for long term borrowings (debt). Inspired by make in
India campaign which is directed to provide ease in doing business, it wishes
to spread its business operations to overseas countries by raising Rs.10 crore
to install new manufacturing unit in rural areas of Nagaland where the rural
women are to be trained under Skill India Mission. The company also does
not want to dilute its control.
a) As a financial advisor, you are asked to suggest which source of finance, the
company should choose to raise further funds. Explain the source.
b) State the reason for selecting the source of fund under part a)
c) Differentiate between shares and debentures on the basis of the following:

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i) Nature
ii) Voting rights
iii) redemption

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