INDIAN SCHOOL AL WADI AL KABIR
DEPARTMENT OF COMMERCE
SAMPLE PAPER-1 2023-2024
BUSINESS STUDIES (054)
TIME: 3 Hours MARKS: 80
General Instructions:
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.
7. Attempt all parts of the questions together
Q. No. Marks
1 Utkarsh wanted to sell his Mumbai factory and posted an advertisement about business on 1
sale. He received an e-mail from a businessman in U.K. indicating his desire to buy his
business. Which feature of e-business has made this possible?
a. Well- designed websites
b. Suitable payment mechanism
c. Global business opportunity
d. All of the above
2 Business finance refers to the requirements of funds by business to carry out its 1
various activities. Hence, finance is called the life _______________ of any
business.
a. Blood
b. Brain
c. Heart
d. None of the above
3 “Amrut” is a NGO operated in the district of Rajkot since 2005. It deals in providing 1
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 Activities
b. Non-Economic Activities
c. Spiritual Activities
d. None of the above
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4 Which of the following is incorrect regarding social responsibility: 1
a. It involves an element of voluntary action on the part of business.
b. It involves the question of what is morally right or wrong in relation to the firm’s
responsibilities.
c. It involves the obligations to take decisions and perform actions which are desirable
in terms of the objectives and values of our society.
d. All the statements are correct.
5 1
IEC stands for _______________.
6 Dell Inc is a company involved in manufacturing of Computer and related items. It’s a 1
very popular name among the computer savvy youth in India. There are different
models of Desktop, Laptop, Tabs, Gaming and Workstations manufactured and sold
by the company in the Indian market.
Which type of Industry highlighted in the above case?
a. Genetic Industry
b. Extractive Industry
c. Processing Industry.
d. Assembly Industry
7 Which of the following is a source for raising borrowed funds: 1
e. Equity Shares
f. Preference Shares
g. Loans from financial institutions.
h. Retained earnings
8 In which year Insurance Act was passed in India? 1
a. 1940
b. 1928
c. 1938
d. 1945
9 Which of the following is not covered under general insurance? 1
a. Fire insurance
b. Theft insurance
c. Life insurance
d. Marine insurance
10 Which of the following document is required in connection with an import transaction? 1
a. Certificate of origin
b. Shipping Bill
c. Letter of credit
d. Mate’s receipt
11 1
Give an example for departmental undertaking.
12 The orders are received, goods are mailed directly to the buyers in which form 1
a. Departmental store
b. Chain store
c. Shopping mall
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d. Mail order business
13 Identify from the below which is not the characteristics of Fixed shop retailers? 1
a. Dealing in different products
b. Have greater resources
c. Independent shops of Temporary nature facilities
d. Mostly provides credit
14 An organization is working for the purpose of public welfare as a ministry of government. It 1
is financed by govt. and all its income is deposited in govt. treasury.
Identify which kind of public sector enterprise is it
a. Partnership
b. Departmental undertaking
c. Sole proprietorship
d. Company
15 Read the following statements: Assertion (A) and Reason(R). Choose the correct alternative 1
from those given below:
Assertion (A): Banks pay less interest on fixed deposit accounts as compared to
savings account.
Reason(R): Banks have to pay a lot of interest on savings account
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A)
c. Assertion (A) is true but Reason (R) is False
d. Both Assertion (A) and Reason (R) are incorrect.
16 Read the following statements: Assertion (A) and Reason(R). Choose the correct alternative 1
from those given below:
Assertion (A): Political interference is a demerit of government company.
Reason(R): The operational policies of the government companies are formed according to
the whims and fancies of the ministers.
Alternatives:
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not 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
17 An enterprise having huge capital, huge turnover and its branches are spread 1
all over the country. What do we call such kind of enterprises?
a. Joint venture
b. Global enterprise
c. Large corporation
d. Huge company
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18 LIC is an example of _____________. 1
a. Statutory Corporation
b. Public company
c. Government company
d. Departmental Undertaking
19 Having identified the countries and firms that export the product, the importing firm 1
approaches the export firms with the help of?
a. Trade enquiry
b. Proforma invoice
c. Mate’s receipt
d. Sight draft
20 1
Using the image as a reference answer the question given below:
Which document is prepared by the exporter to get the goods cleared from the
customs before being loaded on the ship?
21 Kartik has been successfully running business a financial consultancy company for 3
the last five year. His company has become popular and enjoy good reputation. It has
sufficient reserve of profit accumulated from last five year. He plans now to start
branches in Bangalore and Mumbai also. For expanding business does not want any
additional liability. In the above context:
a. Suggest the source of finance suitable to Kartik for expansion.
b. Give ant two feature of that source.
22 Mr. Ranjan wants to buy a new couch for his drawing room but he doesn’t have 3
enough space to keep it and so he plans to sell the one that he is presently
using on Quikr.com. He posted on the site with his couch’s 360◦ photo and price
and suddenly started getting a very good response from different prospective
buyers. After several negotiations, finally he agreed to sell to one of them who
was also nearer to his place. The buyer paid a visit to Mr. Ranjan’s house for
physical inspection of the product and after being satisfied with it, quickly made
the payment that was directly received in Mr.Ranjan’s bank account through
Google Pay.
Answer the following questions related to the above para.
1. Which form of e-business is being referred to in the above case?
(A) B2B
(B) C2C
(C)C2B
(D)B2C
2. Which method of payment was used in the above case?
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(A) UPI
(B) Net-banking
(C)Cheque
(D)Plastic money
3. State another example for such a form of e-business.
OR
In the words of Philip Kotler “Electronic Business is the general term for buying and selling 3
process that is supported by electronic means. Discuss any 3 benefits of the such a business.
23 Gas authority of India Ltd. (GAIL) is carrying on various projects of energy and power. 3
Majority of its shares are held by government of India. It is registered under Companies
Act, 1956 and enjoy all the characteristics of a company. The board of directors are
appointed by the government. The Board and shareholders are responsible for the efficient
working of the company. The company prepares its annual report and submit to appropriate
authorities.
(a) Name the type of public sector enterprise referred in above case.
(b) Government duty shares in whose name?
(c) Where does government companies submit their reports?
24 Explain any three types of partners involved in business. 3
OR
Jagat is running a grocery store under the name ‘Morning Needs’ in a local market. He takes
all decisions about business himself, without any interference from others and also earns a
direct reward for his risk-bearing. 3
In the context of the above case:
a. Identify and define the form of business organization in which Jagat has promoted his
business.
b. State any two features of this form of business organization.
25 Distinguish between department store and multiple shop on the basis of the following 4
(i) Variety (ii) Location (iii) Price (iv) Class of customers
OR
Gurmeet Singh owns large scale retail outlet in Kanpur. He deals with various kinds
of products in his shop like textiles footwear, cosmetics, stationery, grocery etc. He 4
sells them in different divisions in big shop. In this context of the above case:
a. Identify the type of retail outlet being described in the above lines.
b. State any three features of that outlet.
26 Explain briefly the principles of insurance (any four) with suitable examples. 4
OR
Write a note on various postal services (only four) available for enhancing business? 4
27 Explain business responsibility towards following; 4
i ) Workers ii) Shareholders
28 Describe the two benefit of international trade to the nation and two benefit to business 4
firms.
29 Mariah had done a diploma in fashion designing. She is very creative. She saw a picture of a 4
party gown in an international fashion magazine, having a price tag of ₹50,000. She decided
to make that gown herself with some customisation. She calculated that for making of
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gown, she has spent ₹4000. Her friend liked the gown very much, so Mariah sold that gown
to her friend for ₹8,500 and made a profit of ₹4,500. Swati decided to open a boutique of
selling readymade dresses for girls.
On the basis of the given information about Mariah, answer the following questions:
(a)Will the transaction between Mariah and her friend be termed as business?
(b)State the underlying feature of business reflected above.
(c) Explain any two features of business not reflected in the case?
30 Ritvik is a graduate from University of Delhi. He decided to start-up just after the 4
graduation. He took on going EdTech wave in his stride and set up a blended (offline +
online) model of learning extra- curricular activities. He started boot strapped with the
savings of the savings of his internship stipend. However, he is struggling to expand on the
model because of lack of funds. Suggest him six ways to raise more capital.
31 Timex Store are network of retails shop and operated by Timex company. Their shop 6
operate in different parts of country.one can easily these shops in any part of the
country as they same appearance, even their interior is also identical. All the shops are
supplied the goods from head office only. Even store some goods at uniform prices.
(a) State the type of retail store mentioned in above case.
(b) State any five features of that store.
OR 6
Describe the five Services rendered by a retailer to the consumers.
32 It is a voluntary organisation of persons, who join together with the motive of welfare of the 6
members.
(a) Identify the form of business organisation
(b) Explain any two merits and limitations of the identified form of organisation.
OR
Dev runs a successful coach business in Bengaluru. Private commuters, tourists and
business clients are among his customers. Dev has also operated a daily bus service between
Bengaluru and Mysore for some years, which has proved to be the most popular service
provided by his business to commuters. He is currently operating as a sole proprietor.
However, he is considering the option of entering in to partnership with his friend Natasha, 6
who is physically challenged. Natasha is very good in managing company’s accounts but is
unable to find a job.
On the basis of given information, answer the following questions;
(a) State two advantages of form of business organisation which Dev is currently
undertaking.
(b) State any three merits of the form of business in which Dev is planning to enter
with his friend, Natasha.
(c) Identify the values communicated by Dev to the society by forming partnership
with his physically challenged friend.
33 Describe the role of small business in rural India. 6
34 a) Why is share capital called the risk capital? 6
b) An author wants that only he should get the benefit on his creations. The authors creation
is his Intellectual Property. The right granted to keep such property safe is known as the
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Intellectual Property Right. Identify the Intellectual Property Right granted to an author and
how he gets benefit.
c) Shania has Rs 80000 for investment purposes. Should he invest in equity shares or
Debentures? Justify your answer.
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