Class 11 Business Studies: CBSE Sample Question Papers- Term II (2021-22)- 2 | Sample Papers for Class 11 Commerce PDF Download

General Instructions:

• This is a Subjective Question Paper containing 12 questions. 
• This paper contains 4 questions of 2 marks each, 4 questions of 3 marks each and 4 questions of 5 marks each. 
• Section A: 2 marks questions are Short Answer Type Questions and are to be answered in 30-50 words. 
• Section B: 3 marks questions are Short Answer Type Questions and are to be answered in 50-80 words. 
• Section C: 5 marks questions are Long Answer Type Questions and are to be answered in 80-120 words. 
• This question paper contains Case/Source Based Questions.

Q.1. Define Entrepreneurship development. State the stages of the entrepreneurship development program.

Entrepreneurship development is the means of enhancing the knowledge and skills of entrepreneurs through training. The main focus of this development is to strengthen and increase the number of entrepreneurs. The entrepreneurship development program is the process of improving the skills and knowledge of entrepreneurs through various training and development programs. An entrepreneurial development program consists of three broad categories:
(i) Pre-training Stage
(ii) Training or Development Stage
(iii) Post-training or follow-up Stage

Q.2. The District Industries Centres offers a subsidy loan scheme for young professionals under the Ministry of Social Justice and Empowerment guidance. It was established in 1978 and was initiated by the central government to promote small-scale industries in smaller towns. DICs’ primary focus is to generate employment in rural regions of India. Considering the above para, state two main functions of the District Industrial Centre (DIC)?

Two main functions of the District Industries Centre are:

(i) Recognizing and supporting the new entrepreneurs financially.
(ii) Providing financial support to small units.
(iii) Development and expansion of industrial clusters.
(iv) Identification of suitable schemes.
(v) Preparation of feasibility reports
(vi) Arranging for credit, machinery and equipment

Q.3. Explain the importance of foreign trade.

Foreign trade is the only source of specialization in the production of those goods for which a large number of resources and facilities are available in the country due to the unequal distribution of resources. With the help of foreign trade, people get those goods which are not produced in their country and hence, it helps in improving their standard of living. Foreign trade also helps in the economic development of the nation. Capital equipment and scarce raw material can be imported. Also, surplus commodities can be exported to other countries and foreign exchange may be earned.

Q.4. Suman is a retailer of leather boots. She usually buys the goods from Ravi, who is a wholesaler of leather boots. Both, Suman and Ravi deal in goods within the country, and Suman sells them to the end customers. Identify the type of trade Suman and Ravi are engaged in.

Suman and Ravi are engaged in Internal Trade, which refers to buying and selling of goods and services within the boundaries of a nation. Ravi is a wholesaler and Wholesale Trade refers to buying and selling of goods and services in large quantities for resale or immediate use. Suman is a retailer selling goods to the end customer.

Q.5. Rishi is a wholesale dealer in grocery goods. He has contacted several retailers to supply goods to them. He owned a warehouse to store goods. There are variety of goods available with him. He also sells products to the customers, when they demand. He also serves the manufacturers of various goods by helping them in contacting the retailers. Explain which services are provided by wholesalers to the manufacturers?

Services offered by wholesalers to the manufacturers are:

(i) A wholesaler acts as an intermediary between a manufacturer and a retailer as he buys goods from manufacturers and delivers them to the retailers.

(ii) Wholesalers provide market and sales assistance to the manufacturer as they are aware of the market trends. They undertake advertising and sales promotion activities.

(iii) Wholesalers receive bulk orders from the retailers and pass them on to the manufacturers. So, the manufacturers do not need to bother about selling in small quantities.

(iv) Wholesalers take delivery of goods when these are produced in factory and keep them in their warehouses thereby bearing all the associated risks.

Q.6. ‘To facilitate MSMEs in accessing credit assistance from nationalized and private sector banks.’ Discuss the scheme of NSIC being indicated here.

The ‘Bank Credit Facilitation’ scheme of NSIC is being discussed here. NSIC has partnered with several private and public sector banks to fulfill the credit needs of micro, small and medium enterprises. The firms can get credit support by following the proper documentation process. The firms can download the loan application forms from the banks’ official website under the Banks Credit Facilitation scheme.

OR

Mention three main objectives of small-scale industries.

The main objectives of small-scale industries are:

(i) To provide an opportunity for large-scale employment at a minimum cost.

(ii) To meet the growing demands of the consumer ’s goods and simple producer goods.

(iii) To ensure maximum utilization of unexploited resources of the country.

(iv) To help in the development of rural and under-developed regions of the country.

Q.7. Give the classification of small scale enterprises/ MSME along with the criteria and their respective limits as defined by Government of India.

Parameter I

Classification of Manufacturing and Service Enterprises : (i) An industry is a Micro Enterprise if investment in Plant and Machinery does not exceed Rs. 1 crore ; (ii) An industry is a Small Enterprise if investment in Plant and Machinery does not exceed Rs. 10 crore  ; (iii) An industry is a Medium Enterprise if investment in Plant and Machinery does not exceed Rs. 50 crore.

Parameter II
(i) An industry is a Micro Enterprise if its turnover does not exceed Rs. 5 crore;
(ii) An industry is a Small Enterprise if its turnover does not exceed Rs. 50 crore;
(iii) An industry is a Medium Enterprise if its turnover does not exceed Rs. 250 crore. 

Q.8. International trade has an adverse impact on the development of domestic countries. If we take the example of Iran, we know that crude oil cannot be produced by every country and that is why Iran is at a disadvantage all the time due to the monopoly of oil-exporting nations. The exploitation of the importing country by the exporting country can take place. Keeping in mind the case above, point out any four disadvantages of international trade for the underdeveloped and developing countries.

Following are the disadvantages of international trade for underdeveloped and developing countries:

(i) Economic Dependence: Most underdeveloped and developing countries are dependent on exporting countries for importing the goods and services for their economic development. Too much dependence on exporting countries has serious political and socio-economic implications.

(ii) Dumping of goods: Many exporting countries capture the market in underdeveloped countries, dump their goods at throwaway prices. Though such goods are inferior and have shorter life; they attract customers in importing countries which results in cutthroat competition to domestic industries.

(iii) Adverse effect on the BOP (Balance of Payments): Because of relatively more freedom in international trade, the underdeveloped and developing nations are not in a position to compete with developed countries due to lack of competence. Thus, the balance of trade remains negative on a long-term basis.

(iv) Colonialism: International trade leads to colonialism in the world, which means the domination of developed countries over-dependent underdeveloped countries to fulfill their mean interests.

Q.9. Explain the services offered by retailers to the consumers.

Services offered by retailers to their customers are:

(i) The first and foremost service is the availability of goods produced by different manufacturers, which is provided by the retailers to its customers.

(ii) Some retailers provide credit facilities to their regular customers.

(iii) Many retailers provide after-sale services to its customers such as home delivery, supply of spare parts, etc.

(iv) Retailers generally keep a variety of products of different manufacturers, which enables the customers to buy the products as per their requirement and choice.

(v) By arranging for effective display of products and through their personal selling efforts, retailers provide important information about the arrival, special features, etc. of new products to the customers.

(vi) Retail stores are situated very near to the residential areas and remain open for long hours which provides great convenience to the customers.

OR

Explain any five sources of finance.

Sources of finance are:

(i) Retained earnings: Retained earnings refer to the amount left with a company from its income after paying dividends to its customers.

(ii) Public deposits: These are the deposits invited by the companies from public to finance its working capital needs or medium-term fund requirements.

(iii) Debentures: Debentures are debt instruments used by companies and government to issue the loan. These are important instruments for raising long-term debt capital. A company can raise funds through issue of debentures, which bear a fixed rate of interest.

(iv) Issue of shares: The capital of a company is divided into small units called shares. Each share has a nominal value. The capital obtained by issue of shares is known as share capital.

(v) Trade credit: Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. (vi) Bonds: Bonds are units of corporate secured non-convertible debt instrument issued by government or specialised financial institutions.

Q.10. Discuss the role of small businesses in India with special reference to rural areas.

Small businesses are small in size and are owned and controlled by a limited number of people. These businesses require a small amount of capital to start. They provide profits to their owners and serve the local community. These businesses are mostly operated in rural parts of the country to provide employment to a large number of people and strengthen them financially.

The role of small businesses can be described as:

(i) Generates employment: Small businesses employ a large number of people in rural areas. They are more concerned about the laborers in rural areas and employ unskilled workers in their operations. Hence, they play an important role in reducing poverty and improving the lives of people in rural areas.

(ii) Best utilization of local resources: There are a variety of resources in rural areas. These resources include sufficient and cheap raw materials and cheap labor. Small Industries use these resources to the full extent and make the better utilization of these resources.

(iii) Promotes rural development and growth: Rural development or industrialization is one of the main functions of the industries located in rural areas. It also helps in removal of poverty from the villages.

(iv) Increase tax revenue: As the industries employ a large number of people in rural areas, they are earning efficiently and generating revenue. These industries pay taxes to the government on their incomes. When the industries are increasing, the number of laborers is increasing, the tax revenue to the government is also increasing.

Q.11. Resham is engaged in business among various dealers within India. She coordinates with various manufacturers, retailers and customers. One of her friends, Ritu supplies her goods to various manufacturers in various other countries. One day, they met and talked about the differences in their trades. What differences would be there between domestic and international trade?

Q.12. Suresh is a dealer in groceries. He owns a shop in the central market of his area. He buys goods in larger quantities and sells them to small businessmen. He also stores groceries for these small businessmen and provides warehousing facilities to them. Considering the case above, answer the questions below:

(i) Which type of trader Suresh is?

(ii) State the services Suresh provides to these businessmen.

(i) Suresh works as a wholesaler: A wholesaler buys the products in bulk from the manufacturer and sells it to the retailer/businessmen because it acts as an intermediary between manufacturers and retailers. A wholesaler is an important link in the distribution network. The retail stage of distribution is where items are transmitted from the hands of small businessmen to the hands of consumers.

(ii) Services wholesalers provide to the retailers are:
(a) Ready supply: The wholesalers enable the consumer to buy the desired quantity and quality of goods at a convenient time and place because they supply goods regularly to the retailers.
(b) Fair-priced goods: Since a wholesaler buys goods from manufacturers in bulk and allows him to reap the benefits of economies of large-scale production.
(c) Stabilization of price: The wholesaler is in a better position to stabilize the prices of the products by adjusting demand and supply.
(d) Advertising the goods: Wholesalers advertise the goods extensively to enlighten about their uses, types, and qualities. The retailers get knowledge about the goods and are in a better position to inform their customers accordingly.

OR

Ritu and Shashi were talking about expanding their manufacturing business to international countries. They already have many stores in several cities of the country and are earning huge profits. Shashi was satisfied with the domestic business, but Ritu was in favor of expanding the business internationally and explained the benefits of international business. What would Ritu have told Shashi about the benefits?

Benefits of international trade are:
(i) Cost of transportation from India will be reduced by setting up a production plant overseas.
(ii) Business firms can earn more profits by selling their products in countries with high pricing when local prices are lower.
(iii) Making use of excess production capacity to increase operational profitability.
(iv) When domestic market competition is fierce, internationalization appears to be the only way to grow significantly.
(v) The desire to become international stems from a ambition to expand, a desire to become more competitive, and a desire to reap the strategic benefits of internationalization.