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PRACTICE PAPER
BUSINESS STUDIES
Class - XI
Time – 3 hrs. M.M-90

GENERAL INSTRUCTIONS :

1. All the Questions are to be attempted. However internal choice is provided in all the 6 mark Questions.
2. Marks are indicated against each Question.
3. All the Questions of one mark may be answered from one word to one sentence.
4. All the Questions of 3-4 mark may be answered from 50-75 words.
5. All the Questions of 5 marks may be answered about 150 words
6. All the Questions of 6 marks may be answered about 200 words

Q1. Name that element of business which cannot be avoided or eliminated by business forms ,
but can be minimized ? (1)
Q2. In sole proprietorship business ,there is no chance of leaking the information to public.
Name the advantage which this statement is indicating . ? (1)
Q3. What is ’ Registration of a firm ‘ ? (1)

Q4. Why is principle of indemnity not applicable to the contract of life insurance . ? (1)

Q5. How does issue of debentures not affect the control of equity shareholders on
management. (1)

Q6. What are public deposits ? (1)


Q7. How does a wholesaler help a retailer to manage his business with small amount of
working capital. ? (1)
Q8. How do the members of cooperative store enjoy limited liability ? (1)

Q9. Why do departmental store not attract customers of lower income group ? (1)

Q10. What do you mean by auxiliaries of trade ? (3)

Q11.What precautions should be kept in mind while allowing a multinational company to


operate in India? (3)

Q12. Name the concept which defines the right and wrong behaviour in the world of business?
Also discuss its various elements. (3)

Q13. Identify the kind of social responsibility in the following statements:- (3)
(1) Contribution to earthquake victims.
(2) Producing goods and selling them at a profit.
(3) Respecting the religious sentiments of all groups while promoting a product.

Q14. What is meant by chain store ? Give its two merits and one demerit. (3)
Q15. Which hindrance of commerce is highlighted in the following activities ? (4)

(1) It removes the geographical separation between producers and consumers.


(2) There exist time gap between production and consumption of goods.

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(3) Banking and financing institution provide necessary funds to carry on business
activities.
(4) Trade provides an organized market where buyers and sellers can contact each
other.

Q16. What is warehousing ? Explain public warehouses and bonded warehouses. (4)
Q17. Explain the following export documents:- (4)
(1) Bill of lading. (2) Certificate of origin (3) proforma invoice (4) Bill of exchange
Q18. What benefits do firms derive by entering in to international business? (4)
Q19 Is it necessary for a public company to get its shares listed on a stock exchange ? what
happens if a public company going for permission to deal in its securities fails to get such
permission . (5)
Q20. Explain the various functions performed by a promoter ? (5)
Q21. Explain how multinational corporation are beneficial for a country. (5)
(a) Mention two causes responsible for inefficiency of Government Enterprises.
(b) Give any three distinction between a statutory corporation and Government company.
Q22. Explain the following two principle of Insurance with suitable examples: (5)
a) Principle of subrogation (b) Causa proxima
Q23. Define “e-business “. List various risk that can occur in e-business.
(6)
OR
Evaluate the need for outsourcing and discuss its limitations.
Q24. Explain the factors that should be kept in mind before selecting a source of finance. (6)
OR
An established company has decided to expand its production capacity . It does not
have adequate reserves to finance the expansion .Suggest any two other sources of
finance for the company .Also give reasons why these sources of finances should be
selected .
Q25. Differentiate between equity share and preference share. (6)
OR
Write a note on international sources of finance.
Q26. Discuss the role of small business in rural India. (6)
OR
Discuss the problems faced by small scale industries .
Q27. Imagine life without your local market . What difficulties would a consumer face if there
is no retail shop ? (6)
OR
If the wholesaler is eliminated what difficulties do you think the manufacturers would
have to face. Explain.
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