CBSE Class 11 Business Studies Sample Paper - 1 | Business Studies (BST) Class 11 - Commerce PDF Download

CBSE Class 11 Business Studies
 Sample Paper-01
 (With Answer)

Time allowed: 3 hours, Maximum Marks: 90 

General Instructions:-

i. Answer to questions carrying 1 mark may be from one word to one sentence.
ii. Answer to questions carrying 3 marks may be from 50 to 75 words. 
iii. Answer to questions carrying 4-5 marks may be about 150 words. 
iv. Answer to questions carrying 6 marks may be about 200 words. 
v. Attempt all parts of a question together. 
vi. Question Nos. 1 to 8 are very short-answer questions carrying 1 mark each. 
vii. Question Nos. 9 to 14 carry 3 marks each. 
viii. Question Nos. 15 to 19 carry 4 marks each. 
ix. Question Nos. 20 to 23 carry 5 marks each. 
x. Question Nos. 24 to 27 carry 6 marks each.

1."Business Risk can be minimised but can't be eliminated." Which aspect/feature of Business risk is depicked by this statement?

Ans. Business risk is unavoidable.

2. ABC Ltd. Issued Rs. 10,00,000 shares for Public subscription, but got application for Rs. 5,00,000 share. Can ABC Ltd. allot shares to there applicants? Give reason.

Ans. No, because minimum subscription is 90% and ABC Ltd. got applications for 50% issue.

3. The characteristics of these companies are huge size, large number of products, advanced technology, marketing strategies and network of operations all over the World. There enterprises operate in Several areas and produce multiple products. Which business enterprises is discussed above? 

Ans. Global Enterprise (MNC)

4. How life insurance differ from other types of insurances? State. 

Ans. Principle of Indemnity is not followed in other insurances.

5. What is a Global Depository Receipt? 

Ans. Global Depository Receipt is an instrument which the companies of a country issue in US dollar in order to obtain foreign Capital. They are traded in all those foreign share markets which they have been listed

6. Give full form of NABARD.

Ans. The National Bank for Agriculture and Rural Development.

7. Who is playing a catalytic role in strengthening internal trade to make it an important part of overall economic activity?

Ans. Indian Chambers of Commerce and Industry (ICCI).

8. Shaukat Ali wants to import western clothes from Thailand. What first step should be take with regard to it?

Ans. Gather information about countries and firms which provide the product required by the importer

9. Differentiate between the following activities into business, profession and Employment.
Classify these following activities:
 a. Mohan is selling books on behalf of his employer.
 b. Tania is practising law or doing legal practice.
 c. A cart vendor is selling vegetable in different localities. 

Ans. 
Business: Business refers to those economic activities, which are connected with the production or purchase & sale of goods or supply of services with the main object of earning a profit. To earn income in the form of profit people engage themselves in business.
Examples: fishing, mining, farming, manufacturing, wholesales etc.

Profession: Professions includes those activities, which require special knowledge & skill to be applied by individuals in their occupation. Those engaged in professions are known as professionals. Professionals are generally subjected to guidelines or codes of conduct laid down by professional bodies.
Examples: Lawyers are engaged in the legal profession, governed by the bar council of India & chartered accountants belonging to the accounting profession are subject to the regulations of the Institute of chartered accountants of India.
Employment: Getting remunerated in return for the work done for others refers to an employee. Employees are the people who are employed by others. Thus, people who work in factories, offices of banks, insurance companies or government department, etc at various posts are the employees of these organizations. They receive wages & salaries. Examples: working in offices, banks, insurance companies, shops, as a manager, clerk, peon, salesman etc.
a. Employment
b. Profession
c. Business.

10. Give the full form of RTGS. Write any two features of RTGS. 

Ans. Real Time Gross Settlement (RTGS) is an electronic form of funds transferwhere the transmission takes place on a real time basis.
Any two features.
1. Realtime online fund transfer
2. Used for high value transactions

11. State three utility of Departmental undertaking. 

Ans. Utility of Departmental undertaking occurs in following Situations:
(i) Where the complete control of the Government.
(ii) Where secrecy plays a vital role
(iii) Where heavy investment is involved without any guarantee of profit.

12. "The meaning of e-business is to be completed by all Industrial and Commercial Activities." Give three examples of each of there activities. 

Ans. Industrial Activities :
i. Production
ii. Product Development
iii. Inventory Management.

Commercial Activities:
i. Placing an Order
ii. Receiving Delivery
iii. Making Payment.

13. 'Mahindra and Mahindra' was the first company in India its issue convertible debentures in 1990. Now many more companies have the approval to issue convertible debentures to raise long term debt capital. State and explain reasons/advantages of issuing such debentures. 

Ans. Convertible debentures are those debentures which can be converted into share within a given period.
Following are some advantages of debentures:1. Provides fixed income at lesser risk
2. More suitable when earning is stable
3. Debentures do not dilute the control of equity shareholders
14. Identify the type of retailer in the following:
 i. Shyam sell vegetables on his cart from place to place.
 ii. Rani sell school uniforms only in her shop.
 iii. Rehman sell stationary items near railway station. 

Ans. 
(i) Peddlars and hawkers
(ii) Speciality shop
(iii) Street traders

15. This document contains rules regarding internal management of a company while the other document defines the objectives of the company. Quoting the lines from above, identify the two documents of a Company discussed above and give any two difference between them other than give above.

Ans. This document contains rule....... of Co. (Articles of Association).
This document defines...... of Co. (Memorandum of Association).
Differences between A/A and M/A are:


16. What is PPF? Write any three feature of PPF.

Ans. Public Provident Fund Features:
i. Eligibility
ii. Minimum and Maximum Deposit Limit
iii. Minimum Tenure and its Extension or any other.

17. 'Infosys' is one of India's leading software development company that has its business in many countries. What type of business/trade is it doing? What benefits is it generating for the nation? Write any three points. 

Ans. International Business:
i. It helps the country to earn foreign exchange.
ii. Growth prospects of the country increase.
iii. Employment opportunities are generated.

18. 'Reva Chemicals' is a partnership firm. Sona and Mona one two partners in this firm. It is recorded in the Partnership Deed that Sona's liability is unlimited, whereas Mona's is limited. Sona wants to set up the Anti-Pollution plant in his factory, but Mona does not let him do so. Almost all the transactions of this firm are done through the internet. The firm Sells its goods to other Business units only. The firm gets its Research and Development work done by another firm, who is a specialist of such work.
 i. Describe the type of partnership.
 ii. ldentify the two values being overlooked.
 iii. Name the type-business being dons by the firm.

Ans. i. It is a limited partnership.
ii. Violation of Government rules & social responsibility not fulfill.
iii. B2B Commerce.

19. What is the difference between ownership capital and borrowed Capital. 

Ans.

20. "Auxiliares to Trade refers to all those activities Which are undertaken to overcome the hurdles appearing in the way of Trade". Identify and briefly explain the activities to overcome following hindrances of trade:
 a. Hindrance of Place
 b. Hindrance of Time
 c. Hindrance of Risk
 d. Hindrance of Finance e. Hindrance of Information.

Ans. Hindrance of Place-Transportation Hindrance of Time-Warehousing Hindrance of Risk-Insurance Hindrance of Finance-Banking Hindrance of Information - Advertisement

21. What is the meaning of Outsourcing of Service. Explain, the types of outsourcing of services. 

Ans. Outsourcing of services means that some service are obtained from outside the organisation in order to sum the business successfully and also have the benefit of Specialisation. Types: i. Financial Services ii. Advertising Services. iii. Courier Services iv. Customer Support Services.

22. Describe the role of Small business in rural India.

Ans.  i. More Employment ii. Economic Strength iii. Opportunity for Artisans iv. Balanced regional Development v. Improved standard of living vi. Better utilization of resource vii. Less pressure of population on Agriculture viii. Equitable Distribution of Income.

23. An International Organisation came into existence on 1st January 1995. It has been there since, to carry out certain functions. What is this type of organisations? State any four of it functions to emphasise its role. 

Ans. WTO (World Trade Organisation)
i. To remove barries of international trade
ii. To act as a dispute settlement body
iii. To ensure all rules and regulations prescribed in the Act are duly followed by member countries.
iv. Trying to support poor nations (or any other appropriate point)

24. Ravi, Pradeep, Satyender and Dharmender are partners in a partnership firm. Ravi and Satyender take active part in the operation of business whereas Pradeep has contributed in Capital but do not take part in day to day activities of the business. Dharmender is a nominal partner. All four make partnership for a specified time period and also make written agreement to govern the partnership but they does not get the firm registered.
 a. What is meant by nominal partner?
 b. Which type of partnership is there between the partners in above?
 c. What is written agreement between the partners called?
 d. What type of partners Pradeep and Ravi are?
 e. Give two merits of getting firm registered. 

Ans.. a. Partner who allow the use of his name by a firm but does not contribute to its capital and also does not take active part if firm.
b. Particular Partnership
c. Partnership Deed.
d. Pradeep-sleeping partner, Ravi-Active Partner
e. i. A Firm can file a suit against the other firm or other third parties.
ii. Firm can file suit against partners.

25. Write the name of enterprise which is set up as a consequence of partnership between companies. Also point out why do these companies enter into such partnership? 

Ans. Joint Venture: Note: Write any five advantages of a Joint Venture.

26. Define ICDs. Give types and state its features.

Ans. Inter Corporate Deposits are unsecured short term deposits made by one company with another company. Involvement of brokers. Rate of interest higher than banks and markets. Transaction free from bureaucratic and Legal hassles. Types: Three months deposits Six month deposits Call deposits. Features : Between two companies, short term deposits, unsecured involvement of brokers, high rate of interest, High risk, no organised market, requires no legal formalities, preferred by 1000 rated companies.

27. Ratna orders a blanket based on an advertisement given in a newspaper specifying the features, price, delivery terms. It specified that the terms of payment will be VPP only. The product turned out to be of good quality.
 1. Identify this types of retail business
 2. Explain any two advantages and two limitations of the business.
 3. What values were presented by the company which provided the product to Ratna?

Ans. Mail Order Houses : Two Advantages
i. They can be started with low amount of capital.
ii. They don't require the services of middle man so they are eliminated.

Two Disadvantages
i. There is no personal contact between buyers & sellers.
ii. They rely heavily on advertisement (or any other appropriate advantage or disadvantage)

Values : Providing quality product (or any other appropriate value)