DELHI PUBLIC SCHOOL, GURGAON

SECOND TERM EXAMINATION (2024-25)

SUBJECT: BUSINESS STUDIES (054)
CLASS XI, (29-01-2025)
SET: A
Time: 3 hrs MM: 80
No. of pages: 06
General Instructions:
• This question paper contains 34 questions.
• Marks are indicated against each question.
• Answers should be brief and to the point.
• Answers to the questions carrying 3 marks may be from 50 to 75 words.
• Answers to the questions carrying 4 marks may be about 150 words.
• Answers to the questions carrying 6 marks may be about 200 words.
• Attempt all parts of the question together.

1. After completing his graduation, Raman got placed in a company with a good salary. He 1
wanted to keep the surplus money after regular expenses safe in the bank and also earn
interest on the deposits. Which type of account is suitable for Raman?
(a) Current Account
(b) Loan Account
(c) Savings Account
(d) Fixed Deposit Account

2. Which of the following is an example of Intra- B business activity? 1

(a) X Ltd. uses a network of computers for monitoring delivery of materials among
departments.
(b) A customer registers on-line complaint.
(c) A business firm places an online order.
(d) Deepak downloaded movie from movie maker on payment.

3. Reserve Bank of India is an example of this type of public sector enterprise. 1

(a) Joint Venture
(b) Government Company
(c) Departmental Undertaking
(d) Statutory Corporation

4. Read the following statements: Assertion (A) and Reason (R). Choose the correct 1
alternative from those given below:
Assertion (A): Traditional business involves high operating cost.
Reason (R): Nature of internal communication is hierarchical in traditional business.
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

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5. Which of the following refers to Entrepot Trade? 1
(a) Tarun purchases electronic goods from Shanghai and sells in his shop in Delhi.
(b) Varun buys goods from producers around the country and sells it to small retailers
in Gurgaon.
(c) Karun, a trader from Mumbai, buys dates from Dubai and sells them in Nepal.
(d) Arun grows tea in his village in Ooty and sells them in London.
6. Which of the following statements is / are not true with respect to banking services? 1
i. Banks are both borrowers and lenders of money.
ii. Banks do not provide any allied services and other personal services to its customers.
iii. A crossed cheque can be encashed immediately at the bank counters.
iv. E-banking refers to banking using electronic media.
(a) Only i
(b) ii and iv
(c) ii and iii
(d) i and iv
7. Match List I with the different scope of e-business given in List II: 1
List I List II
1. Faster withdrawal of money using ATM i. C2C Commerce
2. Formation of consumer forums ii. B2B Commerce
3. Interaction with suppliers of various components iii. B2C Commerce
(a) 1-ii; 2-i; 3-iii
(b) 1-ii; 2-iii; 3-i
(c) 1-iv; 2-iii; 3-i
(d) 1-iii; 2-i; 3-ii
8. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative 1
from those given below:
Assertion (A): GI is a type of intellectual property.
Reason (R): GIs are part of scientific inventions that need to be protected and promoted.
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
9. The names and addresses of shareholders and the number of shares given to each 1
shareholder is submitted to the Registrar in a statement called __________________.
(a) Statement in lieu of Prospectus
(b) Articles of Association
(c) Consent of Directors
(d) Return of Allotment
10. ‘e-Business offers the advantage of accessing anything, anywhere, anytime.’ Which 1
advantage of e-business is highlighted here?
(a) Speed
(b) Ease of formation and lower investment requirements
(c) Convenience
(d) Movement towards a paperless society

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11. This is not a factor that affects the volume and period of trade credit extended by a business. 1
(a) Degree of competition in the market
(b) Location of the purchasing firm
(c) Reputation of the purchasing firm
(d) Volume of purchases

12. This is not a valid argument in favour of assumption of social responsibilities by the business. 1
(a) Justification for existence and growth
(b) Maintenance of society
(c) Lack of broad public support
(d) Better environment for doing business

13. Rajiv works in a factory which makes goods for final consumption. He heads a unit which 1
mainly focusses on combining various ingredients into a new product. Identify the main and
sub type of industry that Rajiv is working with.
(a) Construction; Synthetical
(b) Secondary; Analytical
(c) Manufacturing; Analytical
(d) Manufacturing; Synthetical

14. Sunil is a small retailer who mainly caters to low income group customers. He opens his 1
shop on fixed days at different markets. He deals in low-priced consumer items of daily
use. Which type of retailer is Sunil?
(a) Cheap jacks
(b) Market traders
(c) Street traders
(d) Hawkers

15. Statement I – Employees should be involved in developing ethical programmes. 1

Statement II – Ethical policies have to be implemented by employees only.
Choose the correct option from the following:
(a) Both Statement I and Statement II are correct
(b) Both Statement I and Statement II are incorrect
(c) Statement I is correct but Statement II is incorrect
(d) Statement I is incorrect but Statement II is correct

16. This is not one of the objectives of WTO. 1

(a) To facilitate optimal use of world’s resources for sustainable development
(b) To engage in such activities which decrease the standard of living
(c) To promote an integrated and durable trading system
(d) To ensure reduction of tariffs and other trade barriers imposed by countries

17. Chavi had some surplus money which she wanted to invest. She wanted high returns for her 1
investment for which she was ready to take high risks. What is the suitable option for Chavi
to invest?
(a) Debentures
(b) Equity Shares
(c) Preference Shares
(d) Public Deposits

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18. Identify the aspect of international business highlighted in the given picture. 1
(a) Political environment differs from
one country to another.
(b) Buyers and sellers are different from
different countries.
(c) The exchange rate keeps on
fluctuating.
(d) Socio-economic differences
complicate the task of designing
products.

19. The government of Karnataka established a super speciality hospital collaborating with 1
Apollo Hospitals. The main reason for this was to provide health care at low cost to people
from rural areas. The government provided the land and Apollo provided competent
medical facilities for operating the hospital. Identify the form of business organisation
highlighted above.
(a) Global Enterprise
(b) Government Company
(c) Limited Liability Partnership
(d) Public Private Partnership

20. Statement I – GST is a destination based single tax on the supply of goods and services 1
from manufacturers to the consumer.
Statement II – Only state governments have a share in GST.
Choose the correct option from the following:
(a) Both Statement I and Statement II are correct
(b) Both Statement I and Statement II are incorrect
(c) Statement I is correct but Statement II is incorrect
(d) Statement I is incorrect but Statement II is correct

21. (a) Explain any three characteristics of entrepreneurship. 3

OR

(b) Discuss any three objectives of Start-up India scheme.

22. Nikunj is a retailer dealing in household items and runs his shop in the busy market in 3
Gurugram. Generally, he buys goods from the wholesalers and sometimes directly from the
producers. He stocks extensive variety of goods to provide a wider choice to the customers.
The regular availability of goods also enables the buyers to buy products as and when
needed. Discuss any three other invaluable services provided by retailers like Nikunj to
consumers.

23. (a) This form of business organization is considered democratic in nature with emphasis on 3
the values of mutual help and welfare. Discuss any three features of the form of business
organisation highlighted above.
OR

(b) A partnership firm can have different types of partners with different roles and
liabilities. In the light of the given statement, explain any three such types of partners.

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24. Explain the following documents related to international trade. 3
(i) Letter of Credit
(ii) Certificate of Origin
(iii) Bill of Lading

25. (a) What is meant by Intellectual Property? Explain ‘Patent’ and ‘Copyright’ as types of 4
IPR.
OR

(b) Discuss any four ways in which the funding for start-up can be availed.

26. (a) Though Departmental Undertakings come under direct control of the concerned 4
Ministry, they still suffer from serious drawbacks. Discuss any four such limitations.

OR

(b) Global enterprises are characterized by ‘huge capital resources’ and ‘advanced
technology’. Discuss any four other features of such organisations.

27. Kavita completed her course in tailoring and wanted to open her own shop in the 4
commercial area of her locality. She invested her savings that she had in her bank account.
Since the amount was not sufficient, she approached her bank for a loan which was
approved soon. She started her business as planned. Identify and explain the funds used by
Kavita for her business on the basis of ownership.

28. Parul runs a bakery under the name Fresh Oven. She sells variety of biscuits and cakes on a 4
regular basis. Her main aim is to earn money for her livelihood and Parul makes continuous
efforts to maximise profits. Identify the type of economic activity that Parul is engaged in.
Also explain any three features of such identified activity which are not highlighted above.

29. Atun Ltd. manufactures cosmetic items using different herbs. Since the products are of 4
good quality, the brand gained popularity soon. Within three years of starting, Atun Ltd. has
become a unicorn company inviting investments from popular venture capitalists. In the
recently conducted board meeting, Shalu, CEO, discussed about the company’s decision to
export the cosmetics to Sri Lanka where the cosmetics industry is growing. Atun Ltd.
wanted to become more competitive and gain the strategic advantages of
internationalization. Explain the other benefits that Atun Ltd. will get due to this decision.

30. The business and its management are responsible towards different interest groups. Discuss 4
any two specific responsibilities each, of business towards ‘Shareholders’ and ‘Government
and Community’.

31. (a) Commercial banks occupy a vital position as they provide funds for different purposes 6
as well as for different time periods. Discuss any three merits and three demerits of raising
funds from a commercial bank.
OR

(b) Retained Earnings is a source of self-financing or internal financing. Discuss any three
merits and three limitations of Retained Earnings as a source of finance.

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32. Rajat finished his management education from a reputed college in Bangalore. He wanted 6
to start a business for manufacturing accessories for mobile phones. But he was confused
regarding the form of business organisation that he wanted to start. He discussed this issue
with Mr. Dev, his marketing professor. Mr. Dev suggested him to start that form of
business organization which will have separate legal entity and will also help in the
expansion of the business easily.
(i) Identify the form of business organization suggested by Mr. Dev.
(ii) Explain any five features of such organization.

33. (a) Victory Ltd. is the leading manufacturer of readymade garments for children under the 6
brand name ‘Pride’. The company sells its products through a number of shops in different
localities. All the branches are controlled by the head office and all sales are made on cash
basis. The company has appointed branch managers for the day-to-day management of the
branches. Identify the type of shops operated by Victory Ltd. and explain any five
advantages provided by such shops.
OR

(b) Salesmart is a large establishment located in the central market of Gurugram and offers
a variety of products. Mr. Rohit is the Managing Director of Salesmart and he is assisted by
many managers. Salesmart makes direct purchases from manufacturers and operates its own
warehouses. The store also has facilities like restaurant and rest rooms. Which type of retail
store is Salesmart? Explain any two advantages and three limitations of such type of retail
establishment.

34. ‘The insured must have insurable interest in the subject matter of insurance.’ In light of the 6
above statement, explain the principle of insurable interest with the help of an example.
Also, explain mitigation and contribution as the principles of insurance.

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