Class 11 Business Studies Previous Year Paper - 5 | Business Studies (BST) Class 11 - Commerce PDF Download

 Page 1


Page 1 of 2 
 
                     
Roll Number 
   
Code Number 
B 
 
General Instructions: 
1. All questions are compulsory.  
2. Answer to questions carrying 1 mark may be from one word to one sentence.  
3. Answer to questions carrying 3 marks may be from 50-75 words.  
4. Answer to questions carrying 4-5 marks may be about 150 words.  
5. Answer to questions carrying 6 marks may be about 200 words. 
 
1 Give an example of an extractive industry. 1 
2 Define partnership. 1 
3 Mention an example of a departmental undertaking. 1 
4 ‘Life insurance is not a contract of indemnity’. Why? 1 
5 What do you mean by business risk? 1 
6 State the meaning of one person company. 1 
7 Give the full form of MOFA. 1 
8 What do you mean by a fixed deposit account? 1 
9 ‘A sole proprietor is the one who is the only owner of a business’. Discuss any three advantages of 
a sole proprietorship. 
 
3 
10 Explain any three characteristics of business activities. 3 
11 Discuss any three features of a Joint Hindu Family business. 3 
12 Explain any three features of a departmental undertaking. 3 
 
 
FIRST TERM EXAMINATION 
 
 BUSINESS STUDIES  
CLASS: XI Time Allotted: 3 Hrs 
Max. Marks: 90 
Page 2


Page 1 of 2 
 
                     
Roll Number 
   
Code Number 
B 
 
General Instructions: 
1. All questions are compulsory.  
2. Answer to questions carrying 1 mark may be from one word to one sentence.  
3. Answer to questions carrying 3 marks may be from 50-75 words.  
4. Answer to questions carrying 4-5 marks may be about 150 words.  
5. Answer to questions carrying 6 marks may be about 200 words. 
 
1 Give an example of an extractive industry. 1 
2 Define partnership. 1 
3 Mention an example of a departmental undertaking. 1 
4 ‘Life insurance is not a contract of indemnity’. Why? 1 
5 What do you mean by business risk? 1 
6 State the meaning of one person company. 1 
7 Give the full form of MOFA. 1 
8 What do you mean by a fixed deposit account? 1 
9 ‘A sole proprietor is the one who is the only owner of a business’. Discuss any three advantages of 
a sole proprietorship. 
 
3 
10 Explain any three characteristics of business activities. 3 
11 Discuss any three features of a Joint Hindu Family business. 3 
12 Explain any three features of a departmental undertaking. 3 
 
 
FIRST TERM EXAMINATION 
 
 BUSINESS STUDIES  
CLASS: XI Time Allotted: 3 Hrs 
Max. Marks: 90 
Page 2 of 2 
 
13 State the need for registration of a partnership firm. 3 
14 Insurable interest is a fundamental principle of insurance. When should it be present in case of: 
(a) Life insurance policy 
(b) Fire insurance policy 
(c) Marine insurance policy 
 
3 
15 Identify and elaborate any three limitations of a co-operative society. 3 
16 ‘Auxiliaries to trade are an integral part of commerce in particular and business activity in 
general.’ In the light of above statement, discuss the different auxiliaries to trade. 
 
4 
17 ‘A Government company can be formed easily and it is relatively free from bureaucratic control 
and political interference’. Elaborate the statement in context of the merits of Government 
companies. 
 
4 
18 Discuss any four benefits of e-banking to customers. 4 
19 Compare and highlight any five points of differences between a private company and a public 
company. 
 
5 
20 Explain the different types of life insurance policies. 5 
21 ‘Multinational corporations are considered a mixed blessing to the developing countries’. Specify 
the advantages of multinational corporations in the light of the above statement. 
 
5 
22 Explain any five functions of promoters in the promotion of a company. 5 
23 Why does business need multiple objectives? Discuss any four such objectives. 5 
24 Compare and explain any 6 differences between business and profession. 6 
25 ‘Mr. Arjun wants to start a business but he is confused with the choice of form of business 
organisation’. As a commerce student, explain him any six factors that influence the choice of 
form of business organisation. 
 
6 
26 ‘In 2003, Bharti and Airtel joined their hands and proved that they are the biggest players in the 
telecom sector’. Identify the type of enterprise to which this example is related. Elaborate its 
benefits. 
 
6 
27 Explain the various fundamental principles of insurance. 6 
 
End of the Question Paper 
 
 
Page 3


Page 1 of 2 
 
                     
Roll Number 
   
Code Number 
B 
 
General Instructions: 
1. All questions are compulsory.  
2. Answer to questions carrying 1 mark may be from one word to one sentence.  
3. Answer to questions carrying 3 marks may be from 50-75 words.  
4. Answer to questions carrying 4-5 marks may be about 150 words.  
5. Answer to questions carrying 6 marks may be about 200 words. 
 
1 Give an example of an extractive industry. 1 
2 Define partnership. 1 
3 Mention an example of a departmental undertaking. 1 
4 ‘Life insurance is not a contract of indemnity’. Why? 1 
5 What do you mean by business risk? 1 
6 State the meaning of one person company. 1 
7 Give the full form of MOFA. 1 
8 What do you mean by a fixed deposit account? 1 
9 ‘A sole proprietor is the one who is the only owner of a business’. Discuss any three advantages of 
a sole proprietorship. 
 
3 
10 Explain any three characteristics of business activities. 3 
11 Discuss any three features of a Joint Hindu Family business. 3 
12 Explain any three features of a departmental undertaking. 3 
 
 
FIRST TERM EXAMINATION 
 
 BUSINESS STUDIES  
CLASS: XI Time Allotted: 3 Hrs 
Max. Marks: 90 
Page 2 of 2 
 
13 State the need for registration of a partnership firm. 3 
14 Insurable interest is a fundamental principle of insurance. When should it be present in case of: 
(a) Life insurance policy 
(b) Fire insurance policy 
(c) Marine insurance policy 
 
3 
15 Identify and elaborate any three limitations of a co-operative society. 3 
16 ‘Auxiliaries to trade are an integral part of commerce in particular and business activity in 
general.’ In the light of above statement, discuss the different auxiliaries to trade. 
 
4 
17 ‘A Government company can be formed easily and it is relatively free from bureaucratic control 
and political interference’. Elaborate the statement in context of the merits of Government 
companies. 
 
4 
18 Discuss any four benefits of e-banking to customers. 4 
19 Compare and highlight any five points of differences between a private company and a public 
company. 
 
5 
20 Explain the different types of life insurance policies. 5 
21 ‘Multinational corporations are considered a mixed blessing to the developing countries’. Specify 
the advantages of multinational corporations in the light of the above statement. 
 
5 
22 Explain any five functions of promoters in the promotion of a company. 5 
23 Why does business need multiple objectives? Discuss any four such objectives. 5 
24 Compare and explain any 6 differences between business and profession. 6 
25 ‘Mr. Arjun wants to start a business but he is confused with the choice of form of business 
organisation’. As a commerce student, explain him any six factors that influence the choice of 
form of business organisation. 
 
6 
26 ‘In 2003, Bharti and Airtel joined their hands and proved that they are the biggest players in the 
telecom sector’. Identify the type of enterprise to which this example is related. Elaborate its 
benefits. 
 
6 
27 Explain the various fundamental principles of insurance. 6 
 
End of the Question Paper 
 
 
Page 1 of 6 
 
EXPECTED VALUE POINTS AND SCHEME OF EVALUATION 
Q.NO. Answers 
Marks 
(with 
split up) 
1 Farming/ Mining/ Lumbering/ Hunting/ Fishing ( Any one) 1 
2 Partnership is the relation between persons who have agreed to share the profit of 
the business carried on by all or any one of them acting for all. 
1 
3 Railways/ Post and telegraph (Any one) 1 
4 Because the life of a human being cannot be compensated and only a specified 
amount is paid. 
1 
5 Business risk refers to the possibility of inadequate profits or losses due to 
uncertainties. 
1 
6 One person company means a company which has only one person as a member.  1 
7 Majority Owned Foreign Affiliates 1 
8 Fixed deposit account is an account in which an amount is deposited for a fixed 
period of time for a higher rate of interest than savings bank account. 
1 
9 (1) Quick decision making : Freedom in taking decisions 
(2) Confidentiality of information: All information can be kept secret 
(3) Direct incentive: Profit should not be shared with anyone 
(4) Sense of accomplishment: The owner alone is responsible for the success 
of business. 
(5) Ease of formation and closure: Minimum legal formalities for sole 
proprietorship. 
( Any three points. ½ for point and ½ for explanation) 
3 
10 (1) An economic activity: It is done with the objective of making money 
(2) Production or procurement of goods and services: The goods are either 
produced or bought. 
(3) Sale or exchange of goods and services: Business involves in the transfer 
of goods or services for value. 
(4) Regular dealings in goods and services: Business involves dealings in 
goods and services on a regular basis. 
(5) Profit earning: The aim of starting business should be to make profit. 
(6) Uncertainty of return: It means the lack of knowledge relating to the 
amount of money with the objective of earning profits. 
(7) Element of risk: Risk is the uncertainty related with an exposure to loss. 
( Any three points. ½ for point and ½ for explanation) 
3 
 
 
FIRST TERM EXAMINATION 
 
 BUSINESS STUDIES SET B 
CLASS: XI Time Allotted: 3 Hrs 
 Max. Marks: 90 
Page 4


Page 1 of 2 
 
                     
Roll Number 
   
Code Number 
B 
 
General Instructions: 
1. All questions are compulsory.  
2. Answer to questions carrying 1 mark may be from one word to one sentence.  
3. Answer to questions carrying 3 marks may be from 50-75 words.  
4. Answer to questions carrying 4-5 marks may be about 150 words.  
5. Answer to questions carrying 6 marks may be about 200 words. 
 
1 Give an example of an extractive industry. 1 
2 Define partnership. 1 
3 Mention an example of a departmental undertaking. 1 
4 ‘Life insurance is not a contract of indemnity’. Why? 1 
5 What do you mean by business risk? 1 
6 State the meaning of one person company. 1 
7 Give the full form of MOFA. 1 
8 What do you mean by a fixed deposit account? 1 
9 ‘A sole proprietor is the one who is the only owner of a business’. Discuss any three advantages of 
a sole proprietorship. 
 
3 
10 Explain any three characteristics of business activities. 3 
11 Discuss any three features of a Joint Hindu Family business. 3 
12 Explain any three features of a departmental undertaking. 3 
 
 
FIRST TERM EXAMINATION 
 
 BUSINESS STUDIES  
CLASS: XI Time Allotted: 3 Hrs 
Max. Marks: 90 
Page 2 of 2 
 
13 State the need for registration of a partnership firm. 3 
14 Insurable interest is a fundamental principle of insurance. When should it be present in case of: 
(a) Life insurance policy 
(b) Fire insurance policy 
(c) Marine insurance policy 
 
3 
15 Identify and elaborate any three limitations of a co-operative society. 3 
16 ‘Auxiliaries to trade are an integral part of commerce in particular and business activity in 
general.’ In the light of above statement, discuss the different auxiliaries to trade. 
 
4 
17 ‘A Government company can be formed easily and it is relatively free from bureaucratic control 
and political interference’. Elaborate the statement in context of the merits of Government 
companies. 
 
4 
18 Discuss any four benefits of e-banking to customers. 4 
19 Compare and highlight any five points of differences between a private company and a public 
company. 
 
5 
20 Explain the different types of life insurance policies. 5 
21 ‘Multinational corporations are considered a mixed blessing to the developing countries’. Specify 
the advantages of multinational corporations in the light of the above statement. 
 
5 
22 Explain any five functions of promoters in the promotion of a company. 5 
23 Why does business need multiple objectives? Discuss any four such objectives. 5 
24 Compare and explain any 6 differences between business and profession. 6 
25 ‘Mr. Arjun wants to start a business but he is confused with the choice of form of business 
organisation’. As a commerce student, explain him any six factors that influence the choice of 
form of business organisation. 
 
6 
26 ‘In 2003, Bharti and Airtel joined their hands and proved that they are the biggest players in the 
telecom sector’. Identify the type of enterprise to which this example is related. Elaborate its 
benefits. 
 
6 
27 Explain the various fundamental principles of insurance. 6 
 
End of the Question Paper 
 
 
Page 1 of 6 
 
EXPECTED VALUE POINTS AND SCHEME OF EVALUATION 
Q.NO. Answers 
Marks 
(with 
split up) 
1 Farming/ Mining/ Lumbering/ Hunting/ Fishing ( Any one) 1 
2 Partnership is the relation between persons who have agreed to share the profit of 
the business carried on by all or any one of them acting for all. 
1 
3 Railways/ Post and telegraph (Any one) 1 
4 Because the life of a human being cannot be compensated and only a specified 
amount is paid. 
1 
5 Business risk refers to the possibility of inadequate profits or losses due to 
uncertainties. 
1 
6 One person company means a company which has only one person as a member.  1 
7 Majority Owned Foreign Affiliates 1 
8 Fixed deposit account is an account in which an amount is deposited for a fixed 
period of time for a higher rate of interest than savings bank account. 
1 
9 (1) Quick decision making : Freedom in taking decisions 
(2) Confidentiality of information: All information can be kept secret 
(3) Direct incentive: Profit should not be shared with anyone 
(4) Sense of accomplishment: The owner alone is responsible for the success 
of business. 
(5) Ease of formation and closure: Minimum legal formalities for sole 
proprietorship. 
( Any three points. ½ for point and ½ for explanation) 
3 
10 (1) An economic activity: It is done with the objective of making money 
(2) Production or procurement of goods and services: The goods are either 
produced or bought. 
(3) Sale or exchange of goods and services: Business involves in the transfer 
of goods or services for value. 
(4) Regular dealings in goods and services: Business involves dealings in 
goods and services on a regular basis. 
(5) Profit earning: The aim of starting business should be to make profit. 
(6) Uncertainty of return: It means the lack of knowledge relating to the 
amount of money with the objective of earning profits. 
(7) Element of risk: Risk is the uncertainty related with an exposure to loss. 
( Any three points. ½ for point and ½ for explanation) 
3 
 
 
FIRST TERM EXAMINATION 
 
 BUSINESS STUDIES SET B 
CLASS: XI Time Allotted: 3 Hrs 
 Max. Marks: 90 
Page 2 of 6 
 
11 (1) Formation: There should be at least 2 members in the family and 
ancestral property to be inherited by them. 
(2) Liability: The liability of all members except the Karta is limited to their 
share of co-parcenery property of business. Karta has unlimited liability. 
(3) Control: The control of the family business lies with Karta. 
(4) Continuity: The business continues even after the death of the Karta as 
the next eldest member takes up the position of Karta, leaving the 
business stable. 
(5) Minor members: The inclusion of an individual into the business occurs 
due to birth in a Hindu Undivided Family. 
( Any three points. ½ for point and ½ for explanation) 
3 
12 (1) The funding of the enterprise is from Government as an appropriation 
from the Government budget. 
(2) They are subject to Government accounting and auditing. 
(3) The employees are Government servants who are headed by IAS officers. 
(4) It is generally a sub division of the Government department and under the 
direct control of the ministry. 
(5) They are accountable to the ministry. 
( Any three points. ½ for point and ½ for explanation) 
3 
13 The consequences of non-registration of a firm are: 
(1) A partner of an unregistered firm cannot file a suit against the firm or 
other partners. 
(2) The firm cannot file a suit against third parties and 
(3) The firm cannot file a case against the partners. 
3 
14 (a) Life insurance policy: Insurable interest should be present at the time of 
taking the policy. 
(b) Fire insurance policy: It must be present both at the time of taking the 
policy and at the time of happening of loss. 
(c) Marine insurance policy: It must be present at the time of happening of 
loss. 
3 
15 (1) Limited resources: Resources of cooperative society consists of capital 
contributions of the members with limited means. 
(2) Inefficiency of management: They are unable to attract and employ 
expert managers because of their inability to pay them high salaries. 
(3) Lack of secrecy: It is difficult to maintain secrecy about the operations of 
a cooperative society. 
(4) Government control: The Government interference in the functioning of 
cooperative societies affects its freedom of operation. 
(5) Differences of opinion: The differences among the members due to 
contrary viewpoints may lead to difficulties in decision making. 
( Any three points. ½ for point and ½ for explanation) 
3 
16 (1) Transport and communication: Transportation provides place utility and 
communication helps in exchanging information. 
(2) Banking and finance: Banking helps the business to overcome the 
problem of finance. 
(3) Insurance: Insurance helps to cover the risk and minimize the loss due to 
risk. 
(4) Warehousing: Warehousing helps to overcome the problem of storage 
4 
Page 5


Page 1 of 2 
 
                     
Roll Number 
   
Code Number 
B 
 
General Instructions: 
1. All questions are compulsory.  
2. Answer to questions carrying 1 mark may be from one word to one sentence.  
3. Answer to questions carrying 3 marks may be from 50-75 words.  
4. Answer to questions carrying 4-5 marks may be about 150 words.  
5. Answer to questions carrying 6 marks may be about 200 words. 
 
1 Give an example of an extractive industry. 1 
2 Define partnership. 1 
3 Mention an example of a departmental undertaking. 1 
4 ‘Life insurance is not a contract of indemnity’. Why? 1 
5 What do you mean by business risk? 1 
6 State the meaning of one person company. 1 
7 Give the full form of MOFA. 1 
8 What do you mean by a fixed deposit account? 1 
9 ‘A sole proprietor is the one who is the only owner of a business’. Discuss any three advantages of 
a sole proprietorship. 
 
3 
10 Explain any three characteristics of business activities. 3 
11 Discuss any three features of a Joint Hindu Family business. 3 
12 Explain any three features of a departmental undertaking. 3 
 
 
FIRST TERM EXAMINATION 
 
 BUSINESS STUDIES  
CLASS: XI Time Allotted: 3 Hrs 
Max. Marks: 90 
Page 2 of 2 
 
13 State the need for registration of a partnership firm. 3 
14 Insurable interest is a fundamental principle of insurance. When should it be present in case of: 
(a) Life insurance policy 
(b) Fire insurance policy 
(c) Marine insurance policy 
 
3 
15 Identify and elaborate any three limitations of a co-operative society. 3 
16 ‘Auxiliaries to trade are an integral part of commerce in particular and business activity in 
general.’ In the light of above statement, discuss the different auxiliaries to trade. 
 
4 
17 ‘A Government company can be formed easily and it is relatively free from bureaucratic control 
and political interference’. Elaborate the statement in context of the merits of Government 
companies. 
 
4 
18 Discuss any four benefits of e-banking to customers. 4 
19 Compare and highlight any five points of differences between a private company and a public 
company. 
 
5 
20 Explain the different types of life insurance policies. 5 
21 ‘Multinational corporations are considered a mixed blessing to the developing countries’. Specify 
the advantages of multinational corporations in the light of the above statement. 
 
5 
22 Explain any five functions of promoters in the promotion of a company. 5 
23 Why does business need multiple objectives? Discuss any four such objectives. 5 
24 Compare and explain any 6 differences between business and profession. 6 
25 ‘Mr. Arjun wants to start a business but he is confused with the choice of form of business 
organisation’. As a commerce student, explain him any six factors that influence the choice of 
form of business organisation. 
 
6 
26 ‘In 2003, Bharti and Airtel joined their hands and proved that they are the biggest players in the 
telecom sector’. Identify the type of enterprise to which this example is related. Elaborate its 
benefits. 
 
6 
27 Explain the various fundamental principles of insurance. 6 
 
End of the Question Paper 
 
 
Page 1 of 6 
 
EXPECTED VALUE POINTS AND SCHEME OF EVALUATION 
Q.NO. Answers 
Marks 
(with 
split up) 
1 Farming/ Mining/ Lumbering/ Hunting/ Fishing ( Any one) 1 
2 Partnership is the relation between persons who have agreed to share the profit of 
the business carried on by all or any one of them acting for all. 
1 
3 Railways/ Post and telegraph (Any one) 1 
4 Because the life of a human being cannot be compensated and only a specified 
amount is paid. 
1 
5 Business risk refers to the possibility of inadequate profits or losses due to 
uncertainties. 
1 
6 One person company means a company which has only one person as a member.  1 
7 Majority Owned Foreign Affiliates 1 
8 Fixed deposit account is an account in which an amount is deposited for a fixed 
period of time for a higher rate of interest than savings bank account. 
1 
9 (1) Quick decision making : Freedom in taking decisions 
(2) Confidentiality of information: All information can be kept secret 
(3) Direct incentive: Profit should not be shared with anyone 
(4) Sense of accomplishment: The owner alone is responsible for the success 
of business. 
(5) Ease of formation and closure: Minimum legal formalities for sole 
proprietorship. 
( Any three points. ½ for point and ½ for explanation) 
3 
10 (1) An economic activity: It is done with the objective of making money 
(2) Production or procurement of goods and services: The goods are either 
produced or bought. 
(3) Sale or exchange of goods and services: Business involves in the transfer 
of goods or services for value. 
(4) Regular dealings in goods and services: Business involves dealings in 
goods and services on a regular basis. 
(5) Profit earning: The aim of starting business should be to make profit. 
(6) Uncertainty of return: It means the lack of knowledge relating to the 
amount of money with the objective of earning profits. 
(7) Element of risk: Risk is the uncertainty related with an exposure to loss. 
( Any three points. ½ for point and ½ for explanation) 
3 
 
 
FIRST TERM EXAMINATION 
 
 BUSINESS STUDIES SET B 
CLASS: XI Time Allotted: 3 Hrs 
 Max. Marks: 90 
Page 2 of 6 
 
11 (1) Formation: There should be at least 2 members in the family and 
ancestral property to be inherited by them. 
(2) Liability: The liability of all members except the Karta is limited to their 
share of co-parcenery property of business. Karta has unlimited liability. 
(3) Control: The control of the family business lies with Karta. 
(4) Continuity: The business continues even after the death of the Karta as 
the next eldest member takes up the position of Karta, leaving the 
business stable. 
(5) Minor members: The inclusion of an individual into the business occurs 
due to birth in a Hindu Undivided Family. 
( Any three points. ½ for point and ½ for explanation) 
3 
12 (1) The funding of the enterprise is from Government as an appropriation 
from the Government budget. 
(2) They are subject to Government accounting and auditing. 
(3) The employees are Government servants who are headed by IAS officers. 
(4) It is generally a sub division of the Government department and under the 
direct control of the ministry. 
(5) They are accountable to the ministry. 
( Any three points. ½ for point and ½ for explanation) 
3 
13 The consequences of non-registration of a firm are: 
(1) A partner of an unregistered firm cannot file a suit against the firm or 
other partners. 
(2) The firm cannot file a suit against third parties and 
(3) The firm cannot file a case against the partners. 
3 
14 (a) Life insurance policy: Insurable interest should be present at the time of 
taking the policy. 
(b) Fire insurance policy: It must be present both at the time of taking the 
policy and at the time of happening of loss. 
(c) Marine insurance policy: It must be present at the time of happening of 
loss. 
3 
15 (1) Limited resources: Resources of cooperative society consists of capital 
contributions of the members with limited means. 
(2) Inefficiency of management: They are unable to attract and employ 
expert managers because of their inability to pay them high salaries. 
(3) Lack of secrecy: It is difficult to maintain secrecy about the operations of 
a cooperative society. 
(4) Government control: The Government interference in the functioning of 
cooperative societies affects its freedom of operation. 
(5) Differences of opinion: The differences among the members due to 
contrary viewpoints may lead to difficulties in decision making. 
( Any three points. ½ for point and ½ for explanation) 
3 
16 (1) Transport and communication: Transportation provides place utility and 
communication helps in exchanging information. 
(2) Banking and finance: Banking helps the business to overcome the 
problem of finance. 
(3) Insurance: Insurance helps to cover the risk and minimize the loss due to 
risk. 
(4) Warehousing: Warehousing helps to overcome the problem of storage 
4 
Page 3 of 6 
 
and provides time utility. 
(5) Advertising: It is the method of promoting the sale of products. 
( Any four points. ½ for point and ½ for explanation) 
17 (1) A separate Act is not required to be passed in the Parliament. 
(2) It has a separate legal entity, apart from the Government. 
(3) It enjoys autonomy in all management decisions and takes actions 
according to business prudence. 
(4) By providing goods and services at reasonable price, it is able to control 
the unhealthy business practices. 
(½ for point and ½ for explanation) 
4 
18 (1) E-banking provides 24 hours, 365 days a year services to the customers 
of the bank. 
(2) Customers can make some of the permitted transactions from office or 
house or while travelling via mobile telephone. 
(3) It inculcates a sense of financial discipline by recording each and every 
transaction. 
(4) Greater customer satisfaction by offering unlimited access to the bank. 
4 
19                                                      Public Co.                                    Pvt. 
Co. 
(1) Members:                            Minimum -7                                        
Minimum - 2 
                                           Maximum- unlimited                         
Maximum - 200 
(2) Minimum no. of directors  -  3                                                     2 
(3) Minimum paid up capital-    5 lakhs                                      1 lakhs 
(4) Index of members  -      Compulsory                                     Not 
compulsory 
(5) Transfer of shares –      No restriction                                  Restriction on 
transfer 
(6) Invitation to public 
to subscribe shares – Can invite                                        Cannot invite the 
public 
( Any five points. ½ for point and ½ for explanation) 
5 
20 (1) Whole life policy: The sum assured is payable to the beneficiaries or heir 
of the deceased only after the death of the assured. 
(2) Endowment life assurance policy: The insurer undertakes to pay a 
specified sum when the insured attains a particular age or on his death 
whichever is earlier.   
(3) Joint life policy: This policy is taken up by two or more persons and the 
sum assured is payable upon the death of any one person to the other 
survivor or survivors. 
(4) Annual life policy: The sum assured is payable after the assured attains a 
certain age in monthly, quarterly, half yearly or annual instalments. This 
is useful to those who prefer a regular income after a certain age. 
(5) Children’s endowment policy: This policy is taken by a person for his 
children to meet the expenses of their education or marriage. 
(½ for point and ½ for explanation) 
5