CLASS XI

BUSINESS STUDIES (054)

SAMPLE QUESTION PAPER (2023-24)
MM – 80 TIME: 3 HOURS

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.

1. Identify the following as NOT an objective of World Trade Organization.

a) To ensure Incremental change in the rate of tariffs and other trade 1
barriers.
b) To ensure optimum use of world’s resources for development
c) To promote integrated trading system
d) To engage in activities that improves standard of living and
employment generation

2. _______was scientific in its construction as a city and provided loading,

unloading and strong facilities of merchandise.
a) Mithila 1
b) Surat
c) Kaveripatta
d) Madura

3. The basis of membership in this type of business is birth in a particular family. 1

Identify the type of business described above.
a) Joint Hindu family
b) Cooperative Society.
c) Partnership.
d) Private company
4. Identify the name of the agency which regulates the issue of public deposits
a) RBI 1
b) CRISIL
c) SBI
d) Indian companies act 2013

5. 1

Identify the concept highlighted in the picture.

a) Patent
b) Copyright
c) Trademark
d) Geographical Indication

6. Divyansh takes an insurance policy of Rs. 4 lakhs against fire and has paid full 1
premium of it. Fire occurred and loss of Divyansh was Rs. 3, 75,000. The
insurance company paid Rs.3,75,000 as compensation. Divyansh was not
satisfied and was claiming the full amount of Insurance policy. Identify the
Principle of insurance under which Divyansh will /will not get the full claim.
a) Divyansh will get full claim under the ‘Principle of Insurable interest
b) Divyansh will not get the full claim under the ‘Principle of Indemnity’
c) Divyansh will not get the full claim under the ‘Principle of Insurable
Interest’
d) Divyansh will get the full claim under the ‘Principle of Indemnity’.

7. Preference shares resemble____ as they bear fixed rate of return. 1

a) Equity shares
b) Public deposit
c) Lease financing
d) Debentures

8. Read the statement carefully and choose the correct alternative: 1

Statement I: NSIC was set up in 1955, with a view to promote eating and
fostering the growth of small business units in the company.
Statement II: NSIC fails to carry forward its mission to assist small enterprises.
a) Statement I is true but statement II is false.
b) Statement II is true but statement I is false.
c) Both the statements are true.
d) Both the statements are false.
9. Name the form of business organisation, opted by many entrepreneurs 1
because of its inherent advantages.
a) Partnership.
b) Joint stock company
c) Sole proprietorship
d) Joint Hindu family business

10 Public issue of debentures requires to be rated by a credit rating agency 1

. like___.
a) NSIC
b) ICICI
c) DIC
d) CRISIL

11 Read the statement carefully and choose the correct alternative: 1

. Statement I- e-business includes not only e-commerce but also other
electronically conducted business.
Statement II- e- business is more than buying and selling over the internet, i.e.
e- commerce.
a) Statement I is true but statement II is false.
b) Statement II is true but statement I is false.
c) Both the statements are true.
d) Both the statements are false.

12 ______ out of these is a source of self-financing for public company 1

. a) lease financing
b) factoring
c) retained Earning
d) public deposits

13 Identify from the following that is NOTa feature of departmental store 1

. a) These stores are generally located at a central place in the heart of a
city, which caters to a large number of customers
b) There is a managing director assisted by a general manager and several
department managers
c) A departmental store combines both the functions of retailing as well as
warehousing
d) They have decentralized purchasing arrangements.

14 The notification was issued by the Ministry of commerce and industry which 1
defined the meaning of start-ups on _______.
a) Feb, 17, 2017
b) Feb,16, 2017,
c) Feb, 15, 2017
d) Feb, 17, 2018
15 Match the columns and choose the correct alternatives: 1
Column I Column II
A. Goods bought on credit i. Cash on delivery
B. Payment through UPI ii. Debit Card
C. Payment made after receiving goods iii. BHIM
D. Transfer money electronically from bank account iv. Credit card
a) A – iv, B – iii, C – i, D – ii
b) A – ii, B – iv, C – i, D – iii
c) A – iii, B – i, C – iv, D – ii
d) A – iii, B – iv, C – ii, D –i

16 Hari started business of manufacturing shirts in order to make the availability of 1

shirts within the reach of many customers. He established contact with retailers
who were dealing in multiple brands of garments and have many branches all
over the world. Hari offered them delivery of goods in which all the expenses
will be borne by him. In order to increase the sales, retailers announced the
offer of ‘buy one and get one free’ shirt manufactured by Hari. Identify the level
in the distribution network that Hari is dealing.
a) Manufacturer
b) Wholesaler
c) Retailer
d) Both a & c

17 Assertion (A): e- business includes both internal and external business 1

activities.
Reason (R): The scope of e-business lies only in dealing with customers.
a) Both A & R are true, But R is not the correct explanation of A.
b) Both A & R are false.
c) A is true, but R is false.
d) Both A & R are true and R is the correct explanation of A.

18 The following document is NOT related to fulfill customs formalities. 1

a) Shipping bill
b) Certificate of origin
c) Marine insurance policy
d) Performa invoice

19 Name the retail organisation where same types of commodities are sold at 1
uniform prices located all over the country.
a) Multiple shops
b) Fixed shops
c) Second shops
d) Departmental stores
20 The terms ‘visible and invisible’ in international business refers to________ 1
a) Licensing and Franchising
b) FDI and FII
c) Goods and Services
d) Entrepot and Import
21 Parking in central Kolkata, the heart of this mega city, has always been a
. hassle. This is the case with most of the inner city areas. In an attempt to
address the situation, the Kolkata Municipal Corporation (KMC) decided to
utilize the rights to underground space and undertake the parking project with
private parties-KMC and Simplex. The purpose of the project was to develop an
underground parking system.

a) Name and state the type of enterprise referred to in the above para.
b) State its two features. 3
OR

Tata Sons and Singapore Airlines has started jointly Vistara Airlines, an Indian
domestic airline based in Gurugram for the common purpose of business
expansion both entered into an agreement to avoid conflict at a later stage.

a) Identity the kind of arrangement under which the two firms formed
Vistara.
b) Explain its two benefits.

22 Anuragtook a fire insurance policy for his property worth 6,00,000 with two
. insurers - ICICI Lombard General Insurance Co. Ltd., for 4,00,000 and Bajaj
Allianz General Insurance Co. Ltd., for 2,00,000. An electric short circuit in
his property caused fire and it resulted in a loss of 1,50,000. He filed a claim
for 1,50,000 against each of the two insurance companies.
a) Can Anurag recover 150000 each from the two insurers?
b) Name the principle of insurance has been highlighted in the given case.
c) Determine the amount of liability of each of the two insurers. 3
OR
‘North-Ex Bank' is a popular private sector bank offering varied services to its
customers. It offers many types of bank accounts to its customers. Saiyam
being a business man has chosen the type of account in which deposits are the
most liquid and there are no limits to the number of transactions or the amount
of transactions in a day. On the other hand, his mother has opened a type of
account where she can conveniently deposit the money she saves. These
accounts provide cheque facility and offer lot of flexibility for deposits and
withdrawal of funds from the account. Saiyam’s younger brother Samik has
opened a special kind of account wherein he will deposit 1000 every month for
the next two years.
By quoting lines from the paragraph identify the various types of bank accounts
being used by Saiyam and his family members.
23 Identify and state the following.
. a) The document including any notice, circular and advertisement inviting
public to apply for subscription of purchase of any share or debenture. 3
b) The document which contains the declaration “we, several persons
whose names and addresses are submitted are desirous to take
qualification shares”.
c) Anything done beyond the conditions containing in this document is
‘Ultra-virus’ for the company.
24 Rasik had aspired to start a Thai food restaurant from his childhood. On
. completing his education he shared his childhood dream with his father.
Therefore, they decided to approach a nearby bank for obtaining loan. His
father’s foremost concern was to raise finance for the business as his savings
would be insufficient for starting a business. 3
a) The two types of funds on the basis of ownership are being discussed
above. Identify and explain them.
b) Also state any two differences between the types of funds identified in
part (a).

25 Ram was appointed as a Production manager in Axis India Pvt. Ltd being run
. by Keshav and Madhav, manufacturing spices. The company is facing a tough
competition from its competitor Virk enterprises as it has launched a wide range
of ready to use spices and also some fusion of Indian spices with Chinese. This
led to an alarming situation to the company and Ram realized that it was losing
its customer base immediately after the launch of the new range of spices by 4
Virk Enterprises resulting into decrease in profitability of Axis India Pvt. Ltd.

a) Outline the concept identified by Ram which led the company to lose its
market share.
b) Explain the given type highlighted in the Para based on the concept
identified in part (a).
c) State the causes which led the organization to keep the concept
identified into consideration. (ANY TWO)

26 Explain the meaning and three key features of GST. 4

27 Shankar established a snacks manufacturing unit in Punjab. Shankar invested
. Rs. 70, 00,000 in plant and machinery. Shankar has decided to allocate 10% 4
profit for educational and health needs of employees and their family members.
a) Name the act of industries applicable on the above manufacturing unit.
b) Identify the category in which Shankar business will be placed as per the
act identified in part (a).
c) State the maximum investment limit of the category in which Shankar’s
business has been placed.
d) Enumerate the name and maximum investment limit of the one more
category other than in which Shankar’s business has been placed.
28 After capturing major market share in India, Manohar enterprises decided to
. expand its operations worldwide. To keep everything accurate according to the
norms laid by Ministry of Foreign trade, it hired a professional agent to get its
export license. The agent informs about the important pre- requisites that
Manohar enterprises need to get export license. Explain the steps that
exporting firm would initiate relating to compliance of export regulations to 4
obtain export license.

29 “e-business referred to as the emerging modes of business”. Describe four

. benefits to this trend.
OR 4
“e-business is constituted various intra and inter transactions” Discuss the four
various constituents of a business that helps in execution of such transactions.

30 Explain any four elements of socially determined model principles which should
. govern business activities.
OR 4
“Assumptions of social responsibility by business provide justification for its
existence and growth”. Defend the statement by stating four reasons.

31 One of the States made a promise that if they came into power; they would set
. up such public sector enterprises in the states which will have the partnership
of both the public and the government. However, in these enterprises, the
ownership of the government shall not be less than 51%. The setting up of
these enterprises is done as per the provisions of the Indian Companies Act,
2013. The financing of these enterprises is done jointly by both, the people and
the government. The second State promised that if they came into power, they
would set up such public sector enterprises which will be completely under the 6
ownership of the government. The burden of financing them will not be put on
the shoulders of the people, but they will be managed with the general budget.
The third State, promised that on coming into power they would set up such
public sector enterprises which will be fully financed by the government.
However, there will be no bar to get loan from the people to set up them. They
will be set up as per the special Act passed by Legislature.
a) On the basis of the above para, identify the type of public sector
enterprises to be set up as being promised by the three states.

b) State any one merit of each of them.

32 Explain any three goods related documents required in export trade.

. 6
OR

Explain any three shipment related documents required for export trade.
33 Kell India Ltd. is manufacturing laptops in India. It is enjoying buoyant demand
. for its products because economic growth is about 7% to 8% due to which
demand for laptop is growing in the market. It is estimated that company will
require about 6,000 crores to setup the plant and about 50 crore for power,
fuel and operations of the new plant. 6
a) Identify and explain the two types of capital requirements specified
above by quoting lines from the case.
b) Discuss two factors that affect the requirements of the types of
capital as identified in part (a)
34 Incorporated in 1988, ABC Housing Finance Ltd. offers housing loans to
. individuals and corporate bodies for construction, purchase, repair, loan
against properties, and loans for real estate developers. The Management
of ABC National Bank decided to open ABC Housing Finance Ltd.
a) In the light of above case who is the promoter of ABC Housing Finance
Ltd.
b) Illustrate the steps involved in the promotion of a company, that ABC
National Bank must have performed before deciding to open ABC
Housing Finance Ltd.
c) Also explain the steps involved in the promotion of a company, that ABC
National Bank will perform after deciding to open ABC Housing Finance
Ltd.
OR
The following image provides detailed highlights of one of the stage of
formation of the company. Identify and explain all the steps of identified stage in 6
detail.