Grade 11 - BUSINESS STUDIES (054)
______________________SA2 Sample Paper 1________________________
1. Assertion: There is more risk in the traditional business.
Reason: Parties have no personal interaction while buying and selling.
(a) Assertion is correct, reason is not correct.
(b) Assertion is incorrect, reason is correct.
(c) Assertion and reason both are correct.
(d) Assertion and reason both are incorrect.
2. “Amrut” is an NGO operating in the district of Rajkot since 2005. It deals in providing
medicines and other medical facilities to the rural, backward, and below-poverty-line
people in the district. In case of need, arrangements are made by the NGO to shift critical
patients to referred hospitals. Name the type of human activities performed by the NGO
“Amrut”.
(a) Economic Activity
(b) Non-economic activity
(c) Employment
(d) None of these
3. Which of the following statement is not correct?
(a) A company can refer to Table A if it does not prepare its articles of association.
(b) A private limited company can have a maximum of 200 members.
(c) A minor as a partner can inspect the books of the firm.
(d) One-person company is a company, which has one person as its member.
4. Due to which characteristic of business there is always a possibility of losses being
incurred, despite the best efforts put into the business:
(a) Uncertainty of returns
(b) Production or procurement of goods and services
(c) Economic activity
(d) Profit earning
5. Assertion (A): The subject matter of life insurance is human life.
Reason(R): Marine insurance has the element of protection only.
(a) Both Assertion and Reason are correct and the Reason is a correct explanation of
theAssertion.
(b) Both Assertion and Reason are correct but Reason is not a correct explanation of
the Assertion.
(c) The Assertion is correct but Reason is incorrect.
1
(d) Both the Assertion and Reason are incorrect.
6. Identify the first step in the export procedure-
(a) Receipt of enquiry
(b) export license
(c) order of indent
(d) production of goods
7. To design and develop products keeping in mind the needs and requirements of the
customers is the responsibility of business towards ___________.
(a) Community
(b) Consumers
(c) Employees
(d) Suppliers
8. A public sector enterprise established under a special law of Parliament:
a) Statutory Corporation b) Departmental undertaking
c) Government Company c) Multi-national Corporation.
9. Which of the following statements is incorrect regarding debentures?
A. Interest paid on debentures is tax-deductible.
B.Debentures do not carry voting rights.
C.It preferred by investors who want fixed income at lesser risk.
D.Issue of debentures dilutes the control of equity shareholders on management.
(a) Only C (b) Only B (c) Only D (d) Only A
10._____________ refer to the socially determined moral principles which should govern
business activities.
a) Ethics b) Business ethics c) Laws d) Ethical codes of conduct
11.When goods are imported for the purpose of export it is called as _________.
(a) Foreign trade (b) Entrepot (c) Home trade (d) Trade
12.All inventions of creations begin with an idea. Once the idea becomes an actual product,
one can apply to the authority concerned under the Government of India for protection.
Legal rights conferred on such products are called _____________.
a) Copyright b) Intellectual Property Rights(IPR) c) Trademark d) Patent
13.Asha is a KVS employee and posted in Gujarat, 1600 kms away from his hometown. His
friend needed Rs. 20,000 and requested for the amount. A sends the amount by digital
mode. It is _____________.
(a) RTGS (b) NEFT (c) Both a and b (d) None of the above
2
14.It is a network of a number of branches situated at different localities in the city or in
different parts of the country.
(a) Multiple shops (b) Consumers cooperative store
(c) Hire purchase system (d) Internet marketing
15.Statement I : The degree of mobility of factors of production like labour and capital
across nations are relatively less.
Statement II : Domestic markets are relatively less homogeneous in nature as compared
to international markets.
Alternative
(a) Statement I is correct and statement II is Wrong
(b) Statement II is correct and statement I is Wrong
(c) Both the statement are correct
(d) Both the statement are incorrect
16.Discuss the problems faced by small scale industries?
17.If registration is optional, why do partnership firms willingly go through this legal
formality and get themselves registered? Explain.
Hint: refer textbook - need for partnership business to get registered.
OR
Despite limitations of size and resources, many people continue to prefer sole
proprietorship over other forms of organisations.Why?
Hint: benefits of sole proprietorship
18.Jyoti wanted to sell her mobile phone but did not get any buyer. On her friend's
suggestion she posted the mobile on sale on www.olx.com and found a buyer within two
days. Name the type of e-business and explain its features.
Hint : C2C
19.Mr.Rajiv is the owner of a ready-made garments factory. His main motive is maximizing
the profit. For this, he is charging high prices from customers and supplying low quality
products. He is not providing good working conditions to workers and paying them
minimum wages. In the above para, towards whom he didn’t meet social responsibility?
Explain in brief.
Hint : write the various responsibilities of the following :-
Social responsibility towards customers and Social responsibility towards employees
OR
Iran Ltd is a well-known company in the telecom sector. The company is committed to
treat everyone fairly with respect and dignity, regardless of differences in age, caste,
creed, gender etc. It not only abides by all the laws and pays taxes on time, but also
makes it serve to participate in social services projects. It prefers to give fair
3
advertisements without any exaggeration, and change fairly from its customers and
maintain quality. Its managers work effectively and efficiently and minimize waste to
maximize the return to their shareholders. The company is running a charitable hospital
to provide medical facilities to the people of that area In the context of the above case. By
quoting the line from the paragraph, Identify the various interest groups towards which
company is fulfilling its social responsibilities.
Hint : identify the various parties involved and quote lines from the case and explain
according to the marks:-
20.When are owner’s funds not suitable for an organisation?
Hint :- Write the meaning of the owner's fund. State the funds that come under the
owner's fund. Explain the non-suitability of owner’s funds as follows:-
OR
Give any four differences between Shares and Debenture.
21.Discuss the various characteristics of Entrepreneurship.
22.Annu,”a village girl, comes to Delhi to visit her relatives. She goes with her cousin to a
shop, which is centrally located. She becomes astonished by the varieties of goods which
are sold here.
(a) Identify this type of shop.
(b) Quoting lines from the above paragraph describe three characteristics of the shop.
Hint :- Departmental store and its features
23.Bring out the objectives of WTO.
24.Why are Global enterprises considered superior to other business organisations?
Hint :- Benefits of global enterprises
25.Can profits be the sole objective of a business? Justify your answer by giving suitable
reasons.
Hint :- State the other objectives of business.
26.What are the services offered by retailers to wholesalers and consumers?
4
27.“Radha Garments Ltd” has a loan of Rs.10,00,000 to pay. They are short of funds so they
are trying to find means to arrange funds. Their manager suggested claiming from the
insurance company against stock lost due to a fire in the warehouse. He actually meant
that they can put their warehouse on fire and claim from an Insurance company against
stock insured. They will use the claim money to pay the loan.
(a) Will the company receive a claim if the survey or from the company comes to
know the real cause of the fire?
(b)Explain three Principles of Insurance.
Hint:-
28.Refer textbook for Export procedure OR Import Procedure
29.Explain the following terms in brief:-
(a) Perpetual succession (b) Common seal (c) Artificial person
Hint:- The features of a company
30.'Enviro Solutions constructs roof top rain water harvesting systems in kerala. Company
needs funds for making its day-to-day expenses like wages, electricity, generator etc.
They decide to approach their supplier "Reddy and Sons'. They requested 'Reddy and
Sons' to grant them credit for purchase of goods and services. This would enable them to
buy raw materials without making immediate payment. ‘Enviro Solutions' financial
position is not very strong and hence it has lost its goodwill. Their past record of
payments to its lenders is also not convincing.
(a) Identify the source of finance discussed in the above case.
(b) State any three characteristics of the source.
Hint:- Trade credit and its features
******************************
