Solution

TERM 1 END EXAMINATION

Class 11 - Business Studies

Section A
1. (a) Human
Explanation: Human
2. (c) All of these
Explanation: All the options given above are some of the disadvantages of running a Sole Proprietorship
firm. No firm can grow if resources are in less supply and also due to lack of managerial abilities. More so,
if the losses are high, a single owner has to bear the complete burden which makes it even more
challenging to sustain the firm in the long run.  
3. (d) private and government owned business
Explanation: The Indian economy consists of both privately owned and government-owned business
enterprises, it is known as a mixed economy.
4. (d) Scheduled
Explanation: A scheduled bank, in India, refers to a bank which is listed in the 2nd Schedule of the
Reserve Bank of India Act, 1934.
5. (b) C2C commerce
Explanation: C2C Commerce, (Customer-to-Customer) or (Consumer-to-Consumer) - is a business model
that facilitates the transaction of products or services between customers.
6. (d) It includes both natural and man-made resources.
Explanation: Environment is defined as the totality of man's surroundings- both natural and man-made.
7. (d) Employment
Explanation: Employment is a relationship between two parties, usually based on a contract where work
is paid for, where one party, which may be a corporation, for-profit, not for profit organization, co-
operative or other entity is the employer and the other is the employee. Employees work for
others/ 'Employer' for remuneration.
8. (c) limited
Explanation: In Limited Partnership, the liability of at least one partner is unlimited. All other partners
may have limited liability.
9. (a) Public sector
Explanation: The pubic sector consists of various organisations owned and managed by the government.
10. (a) Tangible, Intangible
Explanation: Goods can be seen or touched but services cannot be seen or touched. 
11. (b) C2B Commerce
Explanation: Customer to Business (C2B), sometimes known as Consumer to Business, is the most recent E-
Commerce business model. In this model, individual customers offer to sell products and services to
companies who are prepared to purchase them.
12. (b) all of these
Explanation: Effects of noise pollution: loss of hearing, malfunctioning of the heart, mental disorder,
violent behaviour, etc.
13. (c) Processing Industry
Explanation: Processing Industry
14. (b) Registrar of Firms
Explanation: Registrar of Firms
15. (b) All of these
Explanation: The different types of public sector enterprises are as follows: Departmental undertakings,
Statutory corporations, a Government company.

1/4
16. (d) life insurance
Explanation: Life insurance provides financial support to the beneficiary after the death of the policy-
holder.
17. (c) Virtual Private Network
Explanation: A VPN, or Virtual Private Network, is a type of network connection that allows users to
browse the web securely and anonymously.
18. (d) community
Explanation: Responsibility towards the community it should behave as a good citizen and should act
according to the well-accepted values of society.
19. (d) It does not indicate the efficiency of working of business
Explanation: Profit acts as an index of performance for business, if a firm is earning profit it shows the
progress of the business and the economy as a whole.
20. (c) 1956
Explanation: Joint Hindu Family Business is governed by the provisions of the Hindu Law (the Hindu
Succession Act, 1956).
21. (d) before the incorporation
Explanation: Preliminary contracts are contracts entered into by the promoters on behalf of the company
before its incorporation with third parties.
22. (a) Sale of equity shares
Explanation: Disinvestment involves the sale of equity shares to the private sector and the public.
23. (b) Narrow outreach
Explanation: E-commerce business offers wider outreach which is good for consumers and society as well.
24. (c) e-Commerce
Explanation: e-commerce greatly facilitates and speeds up the entire B2C process.
Section B
25. (a) auxiliaries to trade
Explanation: Auxiliaries to trade or aids to trade also provide the necessary support to trade. Such as
transport, warehousing, banking and finance, and insurance.
26. (d) Individual
Explanation: Individual
27. (d) Private sector
Explanation: The private sector encompasses all for-profit businesses that are owned or operated by an
individual or group of individuals.
28. (c) 1948
Explanation: The Government of India declared its first Industrial Policy on 6th April 1948.
29. (a) C2C transactions
Explanation: C2C represents a market environment where one customer purchases goods from another
customer using a third-party business or platform to help facilitate the deal. C2C businesses are a new type
of model that has arisen with e-commerce technology and the sharing economy.
30. (a) 2%
Explanation: As per the Companies Act 2013, the company will set aside an amount equal to 2% of
its average net profits made during the three immediate preceding financial years for CSR activities.  
31. (b) company
Explanation: Company is the form of business organisation in which there is a separation of ownership
and management. Company has a separate legal entity from its members.
32. (c) Economic Activity
Explanation: Economic activities are related to production, distribution, exchange and consumption of
goods and services. The primary aim of economic activity is the production of goods and services with a
view to make them available to the consumer. Since earning profit is the major objective of business, it is
an economic activity.

2/4
33. (a) Small scale
Explanation: Sole Proprietorship is best for Small Size Businesses because of many reasons. The
Sole Proprietor has all the control over his business and also the decision-making powers. The Sole
Proprietor enjoys maximum privacy and running the business is quite simple. 
34. (b) Genetic industries
Explanation: Genetic industries are those industries which are engaged in re-production and
multiplication of species of plants and animals with the sole objective of sale. These industries are engaged
in activities such as animal breeding, cattle breeding, etc.
35. (c) All of these
Explanation: All are responsible:
The government should pass many Acts to check the problem of pollution.
Scientists should devise new methods and machines to check pollution.
Business People should apply new methods and techniques to prevent pollution.
36. (b) Co-operative Societies Act, 1912
Explanation: A cooperative society is governed by Cooperative Societies Act, 1912. 
37. (b) Mining
Explanation: Auxiliaries to trade or aids to trade also provide the necessary support to trade. Such as
transport, warehousing, banking and finance, and insurance. Mining is the primary industry.
38. (d) Nominal Partner
Explanation: A nominal partner is one who allows the use of his/her name by a firm, but does not
contribute to its capital.
39. (d) Corporate Social Responsibility
Explanation: Corporate Social Responsibility- It is a company's commitment towards managing the social,
environmental and economic effects of its operations in line with public expectations. 
40. (c) Government Treasury 
Explanation: The funding of these enterprises come directly from the Government Treasury and are an
annual appropriation from the budget of the government.
41. (d) It cannot own property
Explanation: An artificial Person can never own property.
42. (c) Tertiary
Explanation: The tertiary industry provides support to other industry, creating complementarity to
primary and secondary industries. 
43. (d) Land Pollution
Explanation: Land pollution is caused by the dumping of toxic wastages on land. It changes the physical,
chemical, and biological characteristics of the land and deteriorates the quality of land that make it unfit
for cultivation.
44. (a) sale
Explanation: Trade involves the transfer of goods or services from one person or entity to another, often
in exchange for money. Trade is an essential part of commerce.
45. (d) A is correct
Explanation: The formalities of the formation of a company can be divided into four distinct stages, which
are:
i. Promotion
ii. Incorporation
iii. Subscription of capital
iv. Commencement of business.
46. (a) Company
Explanation: Company
47. (d) Services can be stored for future use
Explanation: Services cannot be stored for sale in the future.

3/4
48. (a) Both A and R are true and R is the correct explanation of A.
Explanation: Transportation helps in making goods available to the consumers no matter where it is
produced, thereby removing hindrance of place.
Section C
49. (c) E-Banking
Explanation: E-Banking
50. (b) RTGS
Explanation: RTGS
51. (b) NEFT
Explanation: NEFT
52. (c) half-hourly batches
Explanation: half-hourly batches
53. (d) Real-Time Gross Settlement
Explanation: Real-Time Gross Settlement
54. (d) Faster Service
Explanation: Faster Service
55. (b) Inflating the prices
Explanation: Inflating the prices may earn profit in the short run but it is not acceptable in the long run,
as it is considered as malpractice.
56. (c) The Companies Act, 2013
Explanation: The Companies Act, 2013 governs the company form of organization. 
57. (b) IAS and Civil Servants
Explanation: Departmental undertakings are headed by IAS and Civil Servants.
58. (b) fixed deposit
Explanation: A fixed deposit (FD) is a financial instrument provided by banks which provides investors
with a higher rate of interest than a regular savings account, until the given maturity date.
59. (a) e-Trading
Explanation: It involves securities trading, that is online buying and selling of shares and other financial
instruments.
60. (a) Only A
Explanation: Supply of good quality and quantity of goods and services is a responsibility of business
towards consumers.

4/4