CHAPTER 1 (a) Mining (b) Insurance

(c) Warehousing (d) Transport

NATURE AND PURPOSE OF BUSINESS 4. The occupation in which people work for others and get remunerated in
One mark questions
return is known as
1. What is Economic activity?
(a) Business (b) Employment
2. Mention any one type of economic activity.
(c) Profession (d) None of the above
3. State any one characteristic of Business.
5. Industry which provide support services to other industries are known as
4. Name the economic activity in which people are rewarded with salary or
(a) Primary industries (b) Secondary industries
wage for their work.
(c) Commercial industries (d) Tertiary industries
5. What type of economic activity is the work of a chartered accountant?
6. Which of the following cannot be classified as an objective of business?
6. Give an example for Extractive industry.
(a) Investment (b) Productivity
7. Give an example for Genetic industry.
(c) Innovation (d) Profit earning
8. Give an example for Manufacturing industry.
7. Business risk is not likely to arise due to
9. What is Analytical industry?
(a) Changes in Government Policy (b) Good Management
10. What is Synthetical industry?
(c) Employee dishonesty (d) Power failure
11. Give an example for processing industry.
Two marks questions
12. What is Assembling industry?
1. What is Business?
13. What is Construction industry?
2. State any two types of Economic activities.
14. Name the industry which provides support services to other industries.
3. State any two characteristics of Business.
15. State a branch of Commerce.
4. How is business different from profession?
16. What is Trade?
5. What is Employment?
17. State any one auxiliary to trade.
6. What is Industry?
18. Name the auxiliary to trade which provides protection against business
7. What is Extractive industry?
risk.
8. Give the meaning of Genetic industry.
19. State an objective of Business.
9. What is manufacturing industry?
20. State any one characteristic of Business risk.
10. What is commerce?
21. State any one cause of Business risk.
11. State the two types of activities of commerce.
Multiple choices One Mark Questions:
12. What are Auxiliaries to trade?
1. Which of the following does not characterize business activity?
13. State any two auxiliaries to trade.
(a) Productions of goods and services
14. State any two objectives of Business.
(b) Presence of risk
15. What is Business risk?
(c) Sale or exchange of goods and services
16. Mention any two characteristics of Business risks.
(d) Salary or wages
17. Mention any two causes of Business risks.
2. Which of the broad categories of industries covers oil refinery and sugar
18. State any two factors to be considered while starting a business.
mills?
Four marks questions
(a) Primary (b) Secondary
1. Explain briefly any four characteristics of Business.
(c) Tertiary (d) None of the above
2. Explain briefly the different types of manufacturing industries.
3. Which of the following cannot be classified as an auxiliary to trade?
3. Explain briefly any four auxiliaries to trade.
4. Explain briefly any four objectives of business. 21. State the nature of liability of the members of co-operative societies.
5. Explain briefly the nature/characteristics of business risk. 22. State the main objective of co-operative societies.
6. Explain briefly the causes of business risks. 23. State the voting principle in co-operative societies.
7. Explain briefly any four factors to be considered while starting a business. 24. Mention any one type of co-operative societies.
Eight marks questions 25. Which Act governs the Joint Stock Companies in India?
1. What is Business? Explain the characteristics of Business. 26. State any one type of Joint Stock Companies.
2. Compare business with profession and employment. 27. Mention the minimum number of members in a private company.
3. Explain the various types of Industries with examples. 28. Mention the maximum number of members in a private company.
4. Describe the activities relating to commerce. 29. Mention the minimum number of members in a public company.
5. Why does a business need multiple objectives? Explain the objectives of 30. Mention the maximum number of members in a public company.
business. 31. Name the type of company in which its shares are freely transferable.
6. Explain the nature and causes of business risks. 32. Which type of company restricts the free transferability of its shares?
7. Explain any eight factors to be considered while starting a business. 33. State any one feature of public company.
34. State any one feature of private company.
CHAPTER 2 Multiple choices One Mark Questions
FORMS OF BUSINESS ORGANIZATION 1. Profits do not have to be shared. This statement referrers to
One Mark Questions (a) Partnership (b) Joint Hindu family business
1. Name any one form of Business Organization. (c) Sole Proprietorship (d) Company
2. Give the meaning of Sole Proprietorship. 2. The Head of the Joint Hindu family business is called
3. Give an example for Sole Proprietorship. (a) Proprietor (b) Director
4. State the nature of liability of a Sole Proprietor. (c) Karta (d) Manager
5. Name the form of business organization which is found only in India? 3. Karta in a Joint Hindu family business has
6. In which country only do you find Hindu Undivided Family Business? (a) Limited liability (b) Unlimited liability
7. Which Law governs Hindu Undivided Family in India? (c) No liability for debts (d) Joint liability
8. Give the meaning of Hindu Undivided Family business. 4. A Partner whose association with the firm is unknown to the general public
9. Who is the head of Hindu Undivided Family Business? is called
10. Who is Karta? (a) Active partner (b) Sleeping partner
11. Who are co-parceners? (c) Nominal partner (d) Secret partner
12. State the nature of liability of Karta. 5. In a cooperative society the principle followed is
13. State the nature of liability of co-parceners. (a) One share one vote (b) One man one vote
14. State the minimum number of persons required to set up a partnership. (c) No vote (d) Multiple votes
15. Which Act governs partnership business in India? 6. Provision of residential accommodation to the members at reasonable
16. Who is a Minor Partner? rates is the objective of
17. State any one consequence of Non-Registration of Partnership firm. (a) Producers’ cooperative (b) Consumers’ cooperative
18. State any one type of Partnership. (c) Housing cooperative (d) Credit cooperative
19. Which Act governs Co-operative Societies in India? 7. The structure in which there is separation of ownership and management
20. State the minimum number of persons required to form a co-operative is called
society. (a) Sole proprietorship (b) Partnership
(c) Company (d) All the above business organizations 23. Give the meaning of Marketing Co-operative Societies.
8. The capital of a company is divided into a number of parts each one of 24. Give the meaning of Farmers’ Co-operative Societies.
which is called 25. Give the meaning of Credit Co-operative Societies.
(a) Dividend (b) Profit 26. State any two advantages of Co-operative Societies.
(c) Interest (d) Share 27. State any two limitations of Co-operative Societies.
9. Minimum numbers of members to form a private company is 28. Give the meaning of a Joint Stock Company.
(a) Two (b) Three 29. Define Joint Stock Company.
(c) Five (d) Seven 30. State any two features of a private company.
10. Minimum number of members to form a public company is 31. State any two features of a public company.
(a) Five (b) Seven 32. State the minimum and maximum number of members in a public
(c) Twelve (d) Twenty one company.
11. Board of Directors in joint stock company is selected by 33. State the minimum and maximum number of members in a private
a) General Public b) Government agencies company
c) Shareholders d) Employees 34. State any two differences between public and private companies.
Two Marks Questions 35. State any two merits of Joint Stock Company.
1. State any two merits of Sole Proprietary Organization. 36. State any two limitations of Joint Stock Company.
2. Specify any two demerits of Sole Proprietary Organization. Four Marks Questions
3. Give the meaning of Hindu Undivided Family business 1. Explain briefly any four features of Sole Proprietorship form of business
4. Define Partnership. organization.
5. Who is an Active Partner? 2. Explain briefly any four merits of Sole Proprietorship form of business
6. Who is a Sleeping Partner? organization.
7. Who is a Nominal Partner? 3. Explain briefly the limitations of sole proprietorship form of business
8. Who is a Partner by Estoppel? organization.
9. Compare active partner with partner by estoppel by taking capital 4. Explain briefly any four features of Hindu Undivided Family business.
contribution and sharing of profits and losses as bases. 5. Explain briefly the merits of Hindu Undivided Family business.
10. Give the meaning of Partnership Deed. 6. Explain briefly the limitations of Hindu Undivided Family business.
11. State any two contents of Partnership Deed. 7. Explain briefly any four features of Partnership.
12. What is Particular Partnership? 8. Explain briefly any four merits of Partnership.
13. What is Partnership at Will? 9. Explain briefly any four limitations of Partnership.
14. What is General Partnership? 10. Explain briefly the types of Partnership.
15. Give the meaning of unlimited liability. 11. Explain briefly any four types of partners.
16. State any two consequences of Non-Registration of partnership firm. 12. Explain briefly the procedure for the registration of Partnership firm.
17. Give the meaning of Co-operative Societies. 13. State any eight contents of Partnership Deed.
18. State the minimum and maximum number of members in Co-operatives. 14. Explain briefly any four features of Co-operative societies.
19. State any two types of Co-operative Societies. 15. Explain briefly any four merits of Co-operative societies.
20. Give the meaning of Consumers’ Co-operative Societies. 16. Explain briefly any four limitations of Co-operative societies.
21. Give the meaning of Producers’ Co-operative Societies. 17. Explain briefly any two types of Co-operative societies.
22. Give the meaning of Housing Co-operative Societies. 18. Explain in brief any four features of Joint Stock Companies.
19. Explain in brief any four merits of Joint stock Companies. 2. Centralized control in MNCs implies control exercised by
20. Explain in brief any four limitations of Joint stock Companies. (a) Branches (b) Subsidiaries
21. State any four privileges of a private company as against a public (c) Headquarters (d) Parliament
company. 3. PSEs are organizations owned by
22. State any four differences between public and private companies. (a) Joint Hindu Family (b) Government
Eight Marks Questions (c) Foreign Companies (d) Private entrepreneurs
1. Explain any four merits and four demerits of Sole Proprietorship form of 4. Reconstruction of sick public sector units is taken up by
business organization. (a) MOFA (b) MoU
2. Explain any four merits and four limitations of Partnership form of (c) BIFR (d) None of the above
business. 5. Disinvestments of PSEs implies
3. Explain the types of co-operative societies. (a) Sale of equity shares to private sector/public
4. Explain any four merits and four limitations of Co-operative societies. (b) Closing down operations
5. Explain the features of Joint Stock Company. (c) Investing in new areas (d) None of the above
6. Explain any four merits and four limitations of Joint Stock Company. Two marks Questions
1. What are Departmental Undertakings?
CHAPTER 3 2. State any two merits of Departmental Undertakings.
3. State any two limitations of Departmental Undertakings.
PRIVATE, PUBLIC AND GLOBAL ENTERPRISES 4. Give the meaning of Statutory Corporations.
One Mark Questions
5. Mention any two merits of Statutory Corporations.
1. What is Private Sector?
6. Mention any two limitations of Statutory Corporations.
2. What is Public Sector?
7. Give the meaning of Government Companies.
3. Mention any one form of organizing Public Sector Enterprises.
8. State any two merits of Government Companies.
4. Give an example for Departmental Undertakings.
9. State any two limitations of Government Companies.
5. Give an example for Statutory Corporations.
10 What is Disinvestment in relation to PSEs?
6. Give an example for Government Company.
11 What do you mean by Global Enterprises?
7. State the Minimum amount of Capital held by the Govt. in Government
12. Give the meaning of Joint Ventures.
Companies.
13. Write any two benefits of Joint Ventures.
8. Give an example for Global Enterprises.
Four Marks Questions
9. State any one benefit of Joint Venture.
1. Briefly explain any four features of Departmental Undertakings.
10. Give an example for Joint Venture.
2. Briefly explain the merits of Departmental Undertakings.
11. Expand MoU.
3. Briefly explain any four limitations of Departmental Undertakings.
12. Expand MNC.
4. Briefly explain any two merits and two limitations of Departmental
13. Expand BIFR.
Undertakings.
Multiple Choices One Mark Questions
5. Briefly explain any four features of Statutory Corporations.
1. A government company is any company in which the paid up capital held
6. Briefly explain any four merits of Statutory Corporations.
by the government is not less than
7. Briefly explain the limitations of Statutory Corporations.
(a) 49 percent (b) 51 percent
8. Briefly explain any two merits and two limitations of Statutory
(c) 50 percent (d) 25 percent
Corporations.
9. Briefly explain any four features of Government Companies. 23. What is Cargo Insurance?
10. Briefly explain the merits of Government Companies. 24. What is Hull or Ship Insurance?
11. Briefly explain any two merits and two limitations of Government 25. What is Freight Insurance?
Companies. 26. State any one type of communication services which help business.
12. Briefly explain any four features of Global Enterprises. 27. State any one category postal facilities provided by Indian postal
13. Briefly explain any four benefits of Joint ventures. department.
Eight marks Questions 28. State any one financial facility provided by Indian Postal department.
1. What are Global Enterprises? Explain their features. 29. State any one type of allied services provided by Indian Postal
2. What do you mean by Joint ventures? Explain their benefits. department.
3. Explain the changing role of Public Sector. 30. State any one type of Telecom Service.
31. State any one type of Warehouse.
CHAPTER 4 32. Give an example for Government Warehouses.
33. Mention any one function of warehousing.
BUSINESS SERVICES 34. Expand EFT.
One Mark Questions
35. Expand RTGS.
1. State any one feature of service.
36. Expand ATM.
2. Name any one category of Services.
37. Expand KVP.
3. State any one difference between goods and services.
38. Expand DTH.
4. State any one business service.
39. Expand PPF.
5. Which Act regulates Banking Services in India?
40. Expand NSC.
6. Name any one type of Bank.
Multiple choices one mark questions
7. Which is the central bank of our country?
1. DTH services are provided by
8. State any one type of bank account.
(a) Transport companies (b) Banks
9. Mention any one function of commercial Bank.
(c) Cellular companies (d) None of the above
10. State any one benefit of E-banking.
2. The contract of life insurance is
11. State any one fundamental principle of Insurance.
(a) A contract of utmost good faith with insurable interest
12. Mention any one function of Insurance.
(b) An indemnity contract
13. State any one type of Insurance.
(c) One way contract (d) None of the above
14. State any one type of General Insurance.
3. Which one of these is not the function of warehousing?
15. State a type of Life Insurance Policy.
(a) Break the bulk (b) Consolidation
16. Who is an Insured?
(c) Price stabilization (d) Advertising
17. Who is an Insurer?
4. Which of the following is not a type of banks?
18. What is Insurance Policy?
(a) Commercial bank (b) Co operative bank
19. What is Insurance Premium?
(c) Central bank (d) Savings bank
20. State a type of Marine Insurance Policy.
Two Marks Questions
21. Which type of marine insurance covers losses caused by damage to the
1. State any two differences between Goods & Services.
ship?
2. Give the meaning of Business Services.
22. State any one Marine Risk.
3. Give the meaning of Banking.
4. Mention any two types of Banks. 42. What do you mean by Consolidation function in warehousing?
5. What are Commercial Banks? Four Marks Questions
6. What are Co-operative Banks? 1. Briefly explain any four features of Services.
7. State any two examples for Specialized Banks. 2. Briefly explain any four differences between Goods & Services.
8. State any two functions of Commercial Banks. 3. Give the meaning of Services and briefly explain the broad categories of
9. What is e-banking? services.
10. State two benefits of e-banking to customers. 4. Briefly explain the different types of Banks.
11. State any two benefits of e-banking to banks. 5. Explain briefly the functions of Commercial Banks.
12. Give the meaning of Insurance. 6. What is e-banking? What are its benefits to banks?
13. State the Principles of Insurance applicable to Life Insurance. 7. What are the benefits of e-banking to customers?
14. State any two functions of Insurance. 8. Briefly explain the fundamental principles of insurance applicable to Life
15. What do you mean by principle of ‘Utmost good faith’? Insurance.
16. What is meant by ‘principle of Indemnity’? 9. Briefly explain the main elements of a life insurance contract.
17. What do you mean by principle of ‘Insurable Interest’? 10. Briefly explain (a) Fire Insurance (b) Marine Insurance.
18. What do you mean by ‘Proximate Cause’? 11. Briefly explain any four types of Life Insurance Policies.
19. What is principle of ‘Subrogation’? 12. What is Marine Insurance? Briefly explain the three subject matters of
20. What is meant by principle ‘Mitigation’? Marine Insurance.
21. Give the meaning of Principle of ‘Contribution’. 13. Explain briefly different Postal Services.
22. Give the meaning of Life Insurance? 14. Explain briefly any four Telecom Services.
23. Name any two types of Life Insurance Policies. 15. Write a brief note on transportation services.
24. Give the meaning of ‘Whole Life Policy? 16. Briefly explain any four types of Warehouses.
25. Give the meaning of ‘Endowment Life Insurance Policy? 17. Briefly explain any four functions of Warehousing.
26. State the meaning of ‘Joint Life Policy? Eight Marks Questions
27. What do you mean by ‘Annuity Policy’? 1. Give the meaning of Services and explain the nature of services.
28. What is ‘Fire Insurance’? 2. What are Commercial Banks? Explain their different functions.
29. What is ‘Marine Insurance’? 3. Explain the principles of Insurance.
30. State the importance of communication services to business. 4. Describe various types of Insurance.
31. Name the two facilities available under Postal Services. 5. Write a detailed note on Communication Services.
32. State any two financial Facilities Provided by Postal Services? 6. What is warehousing? Explain the functions of warehousing.
33. What do you mean by Telecom Services? 7. Give the meaning of warehousing and explain the different types of
34. Mention any two types of Telecom Services. warehouses.
35. What are Transport Services? CHAPTER 5
36. State any two types of Warehouses.
37. What are Private Warehouses?
EMERGING MODES OF BUSINESS
One Mark Questions:
38. What are Public Warehouses?
1. State any one strongest trend shaping the present business.
39. What are Bonded Warehouses?
2. What is Digitization?
40. What are Government Warehouses?
3. Name the Network that is most familiar to students or consumers.
41. State any two functions of Warehousing.
4. What is ‘e-Commerce’? 2. Distinguish between e-Business and e-Commerce.
5. What is B2B? 3. What is Intra-B Commerce?
6. What is B2C? 4. State any two differences between Traditional Business and e-Business.
7. What is Intra-B? 5. State any two benefits of e-Business.
8. What is C2C? 6. State any two demerits of e-Business.
9. What is B2E? 7. State any two risks of e-Business.
10. Expand BPO. 8. What is Cryptography?
11. Give an example of a business firm for C2C. 9. Give the meaning of Cookies.
12. Give an example for B2C. 10. State any two ways of payment in Online Transactions.
13. State any one benefit of e-Business. 11. What is PayPal?
14. State any one limitation of e-Business. 12. State any two resources required for the successful implementation of e-
15. State any one risk of e-Business. Business.
16. State any one way of payment in Online Transactions. 13. Give the meaning of Outsourcing.
17. What is Plastic Money? 14. What services are provided by Call Centers?
18. State any one resource required for the successful implementation of e- 15. Give the meaning Verticals in Outsourcing Terminology.
Business. 16. Give the meaning Horizontals in Outsourcing Terminology.
19. State any one threat to Outsourcing. Four Marks Questions
20. Give an example for captive BPO Unit working in India for its parent 1. Bring out any four distinctions between Traditional Business and e-
company and subsidiaries. Business.
21. Expand SSL. 2. Explain briefly the steps involved in Online Transactions.
22. Expand VIRUS. 3. Explain briefly the scope of e-Business.
23. State any one application of e-business. 4. Explain briefly any four benefits of e-Business.
Multiple Choices One Mark Questions 5. Explain briefly any four limitations of e-Business.
1. e-Commerce does not include 6. Explain briefly the ways of payment in Online Transactions.
(a) A business’s interactions with its suppliers 7. Explain briefly the risks involved in e-Business Transactions.
(b) A business’s interactions with its customers 8. What is Outsourcing? Briefly explain its salient features.
(c) Interactions among the various departments within the business 9. Explain briefly any four reasons to justify the need for Outsourcing.
(d) Interactions among the geographically dispersed units of the business. 10. Explain briefly the concerns over Outsourcing.
2. A Call Centre handles CHAPTER 6
(a) Only in-bound voice based business
(b) Only out-bound voice based business
SOCIAL RESPONSIBILITIES OF BUSINESS AND
(c) Both voice based and non-voice based business BUSINESS ETHICS
(d) Both customer facing and back-end business One mark Questions
3. The payment mechanism most typical to e-business is 1. Mention one socially desirable practice of business.
(a) Cash on Delivery (b) Cheques 2. Mention any one kind of social responsibility.
(c) Credit and Debit Cards (d) e-Cash 3. Mention the major source of pollution.
Two Marks Questions: 4. Mention any one type of pollution.
1. Mention any two strongest trends shaping the present business. 5. How is land pollution caused?
6. State one need for pollution control. 6. Mention any two causes of environment pollution.
7. State any one step to be taken up by business enterprises for 7. State any two reasons which make case for pollution control.
environmental protection. 8. State any two effects of pollution.
8. Give an example for business ethics. 9. What is business ethics?
9. Mention any one element of business ethics. 10. State any two elements of business ethics.
10. Whose involvement is a must in ethics programmes of business? Four marks questions
11. Expand CSR. 1. Explain briefly any four arguments for social responsibility.
Multiple Choices Questions 2. Explain briefly the arguments against social responsibility.
1. Social Responsibility is 3. Explain briefly any four reasons responsible for increasing concern of
(a) Same as legal responsibility (b) Broader than legal responsibility business enterprises towards social responsibility.
(c) Narrower than legal responsibility (d) None of them 4. Explain briefly the various areas of social responsibility of business.
2. If business is to operate in a society which is full of diverse and 5. Explain the social responsibility of business towards:
complicated problems, it may have (a) Shareholders (b) Consumers.
(a) Little chance of success (b) Great chance of success 6. Explain briefly the causes of pollution.
(c) Little chance of failure (d) No relation with success or failure 7. Explain briefly different types of pollution.
3. ‘An enterprise must behave as a good citizen’ is an example of its 8. Explain briefly any four reasons which justify the need for pollution control.
responsibility towards 9. Explain briefly any four steps that should be taken up by business
(a) Owners (b) Workers enterprises for environment protection.
(c) Consumers (d) Community 10. Explain briefly any four elements of business ethics.
4. Environmental protection can best be done by the efforts of
(a) Business people (b) Government CHAPTER 7
(c) Scientists (d) All the people FORMATION OF A COMPANY
5. Carbon Monoxide emitted by automobiles directly contributes to One Mark Questions
(a) Water pollution (b) Noise pollution 1. Who are promoters?
(c) Land pollution (d) Air Pollution 2. State any type of feasibility studies conducted by promoters in the
6. Which of the following can explain the need for pollution control? promotion of a company.
(a) Cost Savings (b) Reduced risk of liability 3. Which type of company issues prospectus?
(c) Reduction of health hazards (d) All of them 4. Which is the main document for a Joint Stock Company?
7. Which of the following is capable of doing maximum good to society? 5. State the minimum number of members who sign Memorandum of
(a) Business success (b) Laws and regulations Association in case of a public company.
(c) Ethics (d) Professional Management 6. State the minimum number of members who sign Memorandum of
Two Marks Questions Association in case of a private company.
1. What is social responsibility of business? 7. Directors of which type of company have to subscribe for qualification
2. How does social responsibility differ from legal responsibility? shares?
3. Mention any two responsibilities of business towards the workers. 8. Expand SEBI.
4. In what ways, a business can assume responsibility towards the 9. At what stage a private company can commence its business?
government? Multiple choices One Mark Questions
5. Give the meaning of environment. 1. Application for the approval of name of a company is to be made to
(a) SEBI (b) Registrar of companies 3. What is capital subscription in the formation of a company? Explain the
(c) Govt. of India steps involved in it.
(d) Govt. of the state in which the company is to be registered CHAPTER 8
2. A proposed name of the company is considered undesirable if
(a) It is identical with the name of an existing company
SOURCES OF BUSINESS FINANCE
One Mark Questions
(b) It resembles closely with the name of an existing company
1. What is business finance?
(c) It is an emblem of Government of India, United Nations, etc.
2. For which purpose fixed capital is needed in business?
(d) In case of any of the above
3. For which purpose working capital is needed in business?
3. A prospectus is issued by
4. Name a source of funds classified under long term.
(a) A private company
5. Name a source of funds classified under short term.
(b) A public company seeking investment from public
6. Name any one source of funds classified under medium term.
(c) A public enterprise
7. Name any one source of funds classified under owner’s funds.
(d) A public company
8. Name any one source of funds classified under borrowed funds.
Two Marks Questions
9. Give an example for internal sources of business finance.
1. State any two important documents for the incorporation of a company.
10. Give an example for external sources of business finance.
2. State any two functions of promoters.
11. Which source of finance is more economical, internal source or external
3. Name any two stages in the formation of a Company.
source?
4. What is Memorandum of Association?
12. Name any one method of factoring.
5. Name any two clauses of Memorandum of Association.
13. State one financial service rendered by a factor.
6. Give the meaning of Liability clause of Memorandum of Association.
14. Name one party in lease financing contract.
7. Give the meaning of Qualification shares.
15. Who is a lessor in lease financing contract?
8. What is Articles of Association?
16. Who is a lessee in lease financing contract?
9. What is ‘Prospectus’?
17. For which type of asset lease financing is more prevalent?
10. Give the meaning of Minimum Subscription.
18. What is the tenure (period) of commercial papers?
Four Marks Questions
19. Name one type of shares issued by the companies.
1. Explain briefly the feasibility studies conducted by the promoters in the
20. State any one type of Preference shares.
promotion stage of Company.
21. What type of shareholders enjoys voting right in the management of a
2. Explain briefly any four clauses of Memorandum of Association.
company?
3. State any four differences between Memorandum of Association and
22. Write one preferential right enjoyed by preference shareholders.
Articles of Association.
23. State any one type of Debentures.
4. Write a note on Articles of Association.
24. Name any one international source of finance where from Indian
5. Write a note on Prospectus.
companies can generate funds.
6. What is Capital Subscription? State the steps involved in it.
25. Name any one financial instrument used to generate funds from
Eight Marks Questions
international capital market.
1. Explain the functions of promoters in the promotion stage of a company
26. Expand IFCI
2. Explain the following stages in the formation of a company:
27. Expand SFC
a) Promotion Stage b) Incorporation Stage
28. Expand ICICI
29. Expand IDBI 6) Name any two sources of funds classified under medium term.
30. Expand UTI 7) Name any two sources of funds classified under owner’s funds.
31. Expand LIC 8) Name any two sources of funds classified under borrowed funds.
32. Expand GDRs. 9) Name any two internal sources of business finance.
33. Expand ADRs. 10) Name any two external sources of business finance.
Multiple Choice Questions 11) Which source of finance is more economical, internal source or external
1. Equity shareholders are called source? And why?
(a) Owners of the company (b) Partners of the company 12) Write the meaning of retained earnings.
(c) Executives of the company (d) Guardians of the company 13) What is trade credit?
2. The term ‘redeemable’ is used for 14) What is factoring?
(a) Preference shares (b) Commercial paper 15) State the methods of factoring.
(c) Equity shares (d) Public deposits 16) What are debentures?
3. Funds required for purchasing Fixed assets is an example for 17) State any two types of debentures.
(a) Fixed capital requirement (b) Ploughing back of profits 18) Mention any two ways of extending loans by the commercial banks.
(c) Working capital requirements (d) Lease financing 19) Why financial institutions are called ‘Development Banks’?
4. ADRs are issued in 20) What is lease financing?
(a) Canada (b) China 21) Who are the parties in a lease contract?
(c) India (d) USA 22) Give the meaning of public deposits.
5. Public deposits are the deposits that are raised directly from 23) How public deposits are beneficial to the depositors as well as the
(a) The public (b) The directors organizations?
(c) The auditors (d) The owners 24) What are commercial papers?
6. Debentures represent 25) Give the meaning of shares.
(a) Additional capital of the company (b) Permanent capital of the company 26) Name the types of shares generally issued by companies.
(c) Fluctuating capital of the company (d) Loan capital of the company 27) What are equity shares?
7. The maturity period of a commercial paper usually ranges from 28) What are preference shares?
(a) 20 days to 40 days (b) 60 days to 90 days 29) State any two types of preference shares.
(c) 120 days to 365 days (d) 90 days to 364 days 30) Mention the two preferential rights enjoyed by preference shareholders.
8. Internal sources of capital are those that are 31) Name two international sources of finance from where Indian companies
(a) Generated though outsiders such as suppliers can generate finance.
(b) Generated though loans from commercial banks 32) Name any two prominent financial instruments used to generate finance
(c) Generated through issue of shares from international capital market?
(d) Generated within the business 33) What are Global Depository Receipts?
Two Marks Questions 34) What are American Depository Receipts?
1) What is business finance? 35) What are Foreign Currency Convertible Bonds?
2) What do you mean by fixed capital requirement of business? 36) State any two factors that affect the choice of source of finance.
3) What do you mean by working capital requirement of business? Four Marks Questions
4) Name any two sources of funds classified under long term. 1. Explain briefly the financial needs of a business.
5) Name any two sources of funds classified under short term. 2. List out the sources of raising finance on the basis of ownership.
3. Write short notes on a) owner’s funds b) borrowed funds Eight Marks Questions
4. Write short notes on a) retained earnings b) trade credit 1. What are retained earnings? Explain its merits and limitations as a source
5. Write short notes on a) public deposits b) commercial papers of business finance.
6. Explain briefly the merits of retained earnings as a source of business 2. What is trade credit? Explain its merits and limitations as a source of
finance. business finance.
7. Explain briefly the merits of trade credit as a source of business finance. 3. Describe the merits and limitations of factoring as a source of business
8. Explain briefly the limitations of trade credit as a source of business finance.
finance. 4. What is lease financing? Explain its merits and limitations as a source of
9. Explain briefly the merits of factoring as a source of business finance. business finance.
10. What is Factoring? Explain briefly its demerits. 5. What are public deposits? Explain the merits and limitations of public
11. Explain briefly the merits of lease financing as a source of business deposits as a source of business finance.
finance. 6. What are commercial papers? Explain the merits and limitations of
12. Explain briefly the limitations of lease financing as a source of business commercial papers as a source of business finance.
finance. 7. Explain the merits and limitations of equity shares as a source of finance.
13. Explain briefly the merits of public deposits as a source of business 8. Explain the merits and limitations of preference shares as a source of
finance. finance.
14. Explain briefly the limitations of public deposits as a source of business 9. Explain the merits and limitations of debentures as a source of finance.
finance. 10. Explain the merits and limitations of commercial banks as a source of
15. Explain briefly the merits of commercial papers as a source of business finance.
finance. 11. Explain any eight factors that affect the choice of appropriate source of
16. Explain briefly the limitations of commercial papers as a source of business finance.
business finance. CHAPTER 9
17. Write short notes on a) equity shares b) preference shares
18. Explain briefly the merits of equity shares as a source of business finance.
SMALL BUSINESS
One Mark Questions
19. Explain briefly the limitations of equity shares as a source of business
1. In which year, the MSMED Act was enacted?
finance.
2. Name the nodal ministry formed by Indian Government to encourage and
20. Explain briefly the merits of preference shares as a source of business
develop small enterprises.
finance.
3. State any one major industry group in the small scale sector.
21. Explain briefly the limitations of preference shares as a source of business
4. Name any one institution established by government for the promotion of
finance.
small and rural industries.
22. Explain briefly the merits of debentures as a source of business finance.
5. Expand NSIC.
23. What are debentures? Briefly explain the limitations of debentures as a
6. Expand SIDBI.
source of business finance.
7. Expand RWED.
24. Explain briefly the merits of raising finance from a commercial bank.
8. Expand WASME.
25. Explain briefly any four merits of raising finance through financial
9. Expand DICs.
institutions.
10. State the investment limit for micro enterprise in manufacturing.
26. Describe different avenues for organizations to raise finance
11. State the investment limit for micro enterprise in services.
internationally.
12. State the investment limit for small enterprise in manufacturing. 4. Explain briefly any four problems faced by small business.
13. State the investment limit for small enterprise in services. 5. Briefly explain the support to the small and rural industries given by any
14. State the investment limit for medium enterprise providing services. four Institutions.
15. State the investment limit for medium enterprise engaged in 6. State any four marketing support activities provided under Marketing
manufacturing. Support to MSMEs Scheme.
16. What is Tax holiday? 7. Briefly explain the common incentives offered to attract small industries
Multiple choices One Mark Questions in rural areas by the government.
1. Which one of the following is not the feature of cottage industries? CHAPTER 10
(a) Usage of simple equipment
(b) Small capital investment
INTERNAL TRADE
One Mark Questions
(c) Usage of private resources by individuals
1. What is internal trade?
(d) Production of goods by using imported technology
2. State the two types of internal trade.
2. Which of the following industry groups does not come under the purview
3. What is wholesale trade?
of Small Scale Sector?
4. What is retail trade?
(a) Food products (b) Rubber and plastic products
5. Which type of trader acts as a link between wholesalers and consumers?
(c) Repair Services (d) Extraction of Iron ore
6. Which type of trader acts as a link between manufacturers and retailers?
3. A new scheme of ‘performance and credit rating’ of small businesses is
7. State any one difference between wholesaler and a retailer.
implemented through
8. State any one type of itinerant retailers commonly seen in India.
(a) NSIC (b) NABARD
9. Name the type of itinerant retailers who open their shops at different
(c) RSBDC (d) None of these
places on fixed days or dates.
Two marks questions
10. Where do you commonly find street traders in a town?
1. State any two parameters used to measure size of the business in case of
11. What type of services is given by Cheap Jacks?
small industries and enterprises.
12. What type of goods is dealt in specialty shops?
2. Give the meaning of village industries.
13. Which type of small fixed shop retailer deals with used goods, books,
3. State any two features of cottage industries.
antique items, etc?
4. State any two institutions set up by the government for the promotion of
14. Carry ‘needle to an aeroplane’ –this statement applies to which type of
small and rural industries.
fixed shop large retailers?
5. State the twin objectives of ‘Performance and Credit Rating’ of small
15. Give an example for multiple shops.
businesses through NSIC.
16. Expand AVM.
6. State any two objectives for the establishment of the National
17. Which is the commonly seen Automated Vending Machine in banking
Commission for Enterprises in the Unorganized Sector (NCEUS).
service?
7. State any two services offered by Rural and Women Entrepreneurship
18. Expand ASSOCHAM.
Development programme.
Multiple Choices One Mark Questions
Four Marks Questions
1. Which of the following do not come under the types of itinerant retailers?
1. Briefly explain any four features of cottage industries.
(a) Peddlers and Hawkers (b) Market Traders
2. State any eight major industry groups in the small scale sector.
(c) Cheap Jacks (d) Street Stall holders
3. Explain briefly any four points which highlight the role of small business
2. Which of the following is not a fixed shop large retailer?
in India.
(a) General Stores (b) Chain stores 6. Explain briefly the different types of itinerant retailers.
(c) Mail Order Houses (d) Super markets 7. Explain briefly different types of fixed shop small retailers.
3. The goods not suitable for Mail Order Houses are 8. Explain briefly any four features of departmental stores.
(a) Those which can be graded and standardized 9. Explain briefly four merits of departmental stores.
(b) Those which can be transported at low cost 10. Explain briefly the limitations of departmental stores.
(c) Those which have ready demand in the market 11. Explain briefly any four features of multiple shops.
(d) Those which are perishable and bulky 12. State any four differences between departmental stores and multiple
4. Which of the following statement does not apply to a wholesaler shops.
(a) He buys in bulk from manufacturers and sells in relatively small lots 13. Explain briefly any four merits of multiple shops.
(b) He undertakes buying and selling in their own name 14. Explain briefly the limitations of multiple shops.
(c) He bears variety of risks 15. Mail Order Houses are not suitable for all types of products. State the
(d) He acts as a link between manufactures and consumers types of products suitable for the Mail Order Houses.
Two Marks Questions 16. Explain briefly any four advantages of mail order business.
1. How do wholesalers help in facilitating large scale production? 17. Explain briefly any four limitations of mail order business.
2. How do retailers help in collecting market information for manufactures 18. Explain briefly any four advantages of consumers’ co-operative stores.
and wholesalers? 19. Explain briefly the limitations of consumers’ co-operative stores.
3. State any two types of itinerant retailers commonly seen in India. 20. Explain briefly the features of super markets.
4. State any two types of fixed shop small retailers. 21. Explain briefly the merits of super markets.
5. State any two types of fixed shop large retailers. 22. Explain briefly the limitations of super markets.
6. Give the meaning of specialty stores. 23. Write a short note on Vending machines.
7. Give the meaning of Second hand goods shop. Eight Marks Questions
8. What do you understand by departmental stores? 1. Who is a wholesaler? Explain the services of wholesalers to manufacturers.
9. Give the meaning of chain stores or multiple shops. 2. What is retail trade? Explain the services of a retailer to consumers.
10. How do mail order houses do retailing business? 3. Explain the different types of fixed shop small retailers.
11. State any two alternatives available for customers to make payments in 4. Explain four merits and four limitations of Departmental stores.
mail order business. 5. Explain four merits and four limitations of chain stores.
12. Give the meaning of consumer co-operative stores. 6. Explain four merits and four limitations of Mail Order Houses.
13. How consumer co-operative stores can be started? 7. Explain the four merits and four limitations of Super markets.
14. Give the meaning of super markets. 8. Explain the role of Commerce and Industry Associations in the promotion
15. Give the meaning of Vending Machines. of internal trade.
16. State any two products suitable for selling through AVMs. CHAPTER 11
Four Marks Questions
1. Explain briefly any four services of wholesalers to manufacturers.
INTERNATIONAL BUSINESS - I
One Mark Questions
2. Explain briefly any four services of wholesalers to retailers.
1. Give an example for international Trade in Services.
3. Explain briefly any four services of retailers to manufacturers and
2. Name any one mode of entering into international business.
wholesalers.
3. What is export trade?
4. Explain briefly any four services of retailers to consumers.
4. What is import trade?
5. Explain briefly the features of itinerant retailers.
5. Which is the easiest mode of gaining entry into international markets? 7. Which one of the following modes of entry brings the firm closer to
6. Give an example of a business organization that has entered into international markets?
international business through licensing system. (a) Licensing (b) Franchising
7. Give an example of a business has entered into international business (c) Contract manufacturing (d) Joint venture
through franchising system. Two Marks Questions
8. What is Contract Manufacturing known as? 1. Define international business.
9. Mention one type of foreign investment. 2. Give any two reasons for international business.
10. Name the parties in licensing system. 3. Write the meaning of licensing.
11. Name the parties in franchising system. 4. What is franchising?
12. State any one way by which wholly owned subsidiaries enter into 5. What is meant by foreign direct investment?
international business. 6. What is portfolio investment?
Multiple Choices One Mark Questions 7. Write the meaning of contract manufacturing.
1. In which of the following modes of entry, does the domestic manufacturer 8. Write the meaning of cross licensing.
give the right to use intellectual property such as patent and trademark to a 9. State the two differences between the licensing and franchising
manufacturer in a foreign country for a fee 10. Write the meaning of joint venture.
(a) Licensing (b) Contract Manufacturing 11. Mention any two ways of forming joint venture.
(c) Joint Venture (d) None of these 12. Name any two countries with which India trades.
2. Outsourcing a part or entire production and concentrating on marketing 13. What is meant by direct export/import?
operations in international business is known as 14. Write the meaning of indirect export/import.
(a) Licensing (b) Franchising Eight Marks Questions
(c) Contract Manufacturing (d) Joint Venture 1. How international business differs from domestic business?
3. When two or more firms come together to create a new business entity 2. Explain the scope of international business.
that is legally separate and distinct from its parents, it is known as 3. Explain the benefits of international business both to nations and firms.
(a) Contract manufacturing (b) Franchising 4. What is exporting & importing? Explain its advantages and limitations.
(c) Joint ventures (d) Licensing 5. What is joint venture? Explain its advantages & limitations.
4. Which of the following is not an advantage of exporting? CHAPTER 12
(a) Easier way to enter into international market
(b) Comparatively lower risks
INTERNATIONAL BUSINESS - II
One Mark Questions
(c) Limited presence of markets in foreign markets
1. EXPAND DGFT.
(d) Less investment requirements
2. Expand IEC.
5. Which one of the following modes of entry requires higher level of risks?
3. Expand FTZ.
(a) Licensing (b) Franchising
4. Expand EPZ.
(c) Contract manufacturing (d) Joint venture
5. Expand SEZ.
6. Which one of the following modes of entry permits greatest degree of
6. Expand ITO.
control over overseas operations?
7. Expand GATS.
(a) Licensing/Franchising (b) Wholly owned subsidiaries
8. Expand EXIM.
(c) Contract manufacturing (d) Joint venture
9. Name any one document of export business.
10. Name any one document of import business. 11. Write the meaning of bill of entry.
11. How many commodity boards are working at present in India? 12. What is import general manifest?
12. Name any one commodity board working in India. 13. State any two measures & schemes introduced by the government to
13. At present, how many export promotion councils are working in India? promote international business.
14. Name any one Export Processing Zone (EPZ). 14. Write the meaning of duty draw back scheme.
15. Name any one institution set up by the Indian government to promote 15. What is meant by export manufacturing under bond scheme?
export trade. Eight Marks Questions
16. State any one scheme undertaken by the government to promote foreign 1. Explain the steps to be followed in export trade to obtain excise clearance.
trade. 2. Explain the steps to be followed in export trade after obtaining excise
17. Name the authority to issue bill of lading. clearance?
18. Name the authority to issue airway bill. 3. Explain briefly the steps involved in the import procedure.
19. Name any one International Trade Institution. 4. Explain any eight measures & schemes that the Indian government has
Multiple Choices One Mark Questions evolved for promoting the country’s exports.
1. A receipt issued by the commanding officer of the ship when the cargo is
loaded on the ship is known as CHAPTERWISE PRACTICAL ORIENTED QUESTIONS
(a) Shipping receipt (b) Mate’s receipt 1. As the owner of a business unit, what risks you may face in running it?
(c) Cargo receipt (d) Charter receipt 2. You are planning to start a new business. Make a list of any five factors
2. The document containing a guarantee of a bank to honor drafts drawn on you consider while selecting a suitable form of business organization.
it by an exporter is 3. Assuming that you are a businessman, state what benefits do you enjoy
(a) Letter of Hypothecation (b) Letter of Credit by entering into Joint Venture.
(c) Bill of Lading (d) Bill of exchange 4. As a customer of a Bank, list out any five e-banking Services enjoyed by
3. Which of the following documents is not required in export procedure? you.
(a) Certificate of Origin (b) Certificate of Inspection 5. As an online buyer, mention any five information-intensive products that
(c) Mate’s receipt (d) Bill of Entry can be delivered electronically into your computer.
4. Which of the following documents is not required in import procedure? 6. As a businessman having concern for environment protection, suggest any
(a) Trade Enquiry (b) Bill of Entry five steps which can be taken by you for environment protection.
(c) Import General manifesto (d) Certificate of Origin 7. As a promoter, state five important documents to be prepared for the
Two Marks Questions Incorporation of a joint stock company
1. Give the meaning of proforma invoice. 8. Suggest any five important sources of finance available for a business
2. What is pre-shipment finance? organization.
3. What is the need of pre-shipment inspection? 9. Give a list of any five Institutions which support small business in India.
4. What is certificate of origin? 10. Being a consumer, name the types of large fixed retail shops which you
5. Why certificate of origin is necessary? would like to do your shopping.
6. What is shipping order? 11. As an aspirant of doing international business what different modes of
7. What is Mate’s receipt? entry into International Business do you find?
8. Give the meaning of bill of lading. 12. Mention any five foreign trade promotion measures and schemes
9. What is airway bill? undertaken by the Government of India to boost up foreign trade.
10. Write the meaning of letter of credit. xxxxxxxxxxxxxxxxxxxx