SAMPLE QUESTION PAPER - 1

Business Studies (054)

Class XI (2024-25)
Time Allowed: 3 hours Maximum Marks: 80
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. Every importer is required to secure the sanction of foreign exchange in order to [1]
make the payment. For obtaining such a sanction, to whom the importer has to
make an application from among the following:

a) Exchange Control Department b) Any bank authorized by RBI to

of RBI issue foreign exchange

c) DGFT d) EXIM

2. Which of the following comes under Modern Small Industries? [1]

a) Khadi b) Handicrafts

c) Coir d) Powerlooms

3. Indian economy consists of ________. [1]

a) only private business b) only government business

c) only Semi Government d) private and government owned

business

4. On which basis fixed-shop retailers are classified into small shopkeepers and large [1]
retailers?

a) Size of their operations b) Type of ownership

 c) Place of business d) Merchandise handled

5. What is the maximum amount that can be invested in equipment by a Medium [1]
enterprise engaged in rendering services according to Government of India?

a) 5 crore rupees b) 2 crore rupees

c) 3 crore rupees d) 4 crore rupees

6. It is not an application of e-business: [1]

a) Online trading b) Online bidding

c) Contract R&D d) Online procurement

7. Which of the following is an example of Departmental undertakings? [1]

a) Air India b) Post and Telegraph Department

c) All of these d) Railway

8. The District Industries Centers Programme was launched on: [1]

a) September 1, 1978 b) July 1, 1978

c) May 1, 1978 d) 15 August 1978

9. Which of the following statements is incorrect regarding debentures? [1]

A. Interest paid on debentures is tax-deductible.
B. Debentures do not carry voting rights.
C. It preferred by investors who want fixed income at lesser risk.
D. Issue of debentures dilutes the control of equity shareholders on management.

a) Only C b) Only B

c) Only D d) Only A

10. Assertion (A): The size of a sole proprietorship business rarely grows much and [1]
generally remains small.
Reason (R): A sole trader is also not bound by law to publish a firm’s accounts.

a) Both A and R are true and R is b) Both A and R are true but R is
the correct explanation of A. not the correct explanation of
 A.

c) A is true but R is false. d) A is false but R is true.

11. Small Scale Fixed retailers includes ________. [1]

a) hawkers b) general stores

c) pedlars d) cheap jacks

12. Which of the following statements is correct for wholesalers: [1]

a) They undertake additional b) They generally take the title of

activities. the goods and bear the business
risks in their own name

c) They engage in buying and d) All of these

selling of goods

13. Minimum number of members to form a public company is: [1]

a) 21 b) 5

c) 12 d) 7

14. NABARD was setup in ________. [1]

a) 1975 b) 1987

c) 1982 d) 1991

15. Choose the correct full form of CSR from the below given options:- [1]

a) Company Social Responsibility b) Corporate Shared

Responsibility

c) Corporate Societal d) Corporate Social

Responsibility Responsibility

16. Assertion (A): Life Insurance is not only a protection but is a sort of investment. [1]
Reason (R): Certain sum is returnable to the insured either at the time of death or
at the expiry of a certain period.
 a) Both A and R are true and R is b) Both A and R are true but R is
the correct explanation of A. not the correct explanation of
A.

c) A is true but R is false. d) A is false but R is true.

17. Who among the following are the highest risk-takers? [1]

a) People practicing a profession b) People engaged in career

employment

c) Entrepreneurs d) All of these

18. Among the following given activities, which one is not an economic activity: [1]

a) Trading in goods and services b) Social welfare

c) Manufacturing of goods for d) Transportation services

sale

19. Exemption from paying taxes for 5 to 10 years is known as ________. [1]

a) Value Added Tax b) tax deduction

c) tax holiday d) TDS

20. What minimum percentage of the paid-up capital should be held by the government [1]
in a Government Company?

a) 49% b) 100%

c) 75% d) 51%

21. Shivam Enterprises is a leading manufacturer of Home Security Equipments and its [3]
products enjoy a very good reputation in the Indian market. Encouraged by this,
Kartik (owner of the firm) is thinking of expanding the work to foreign territories
also. Kartik wants to export the security equipment to Europe. So, he consulted
Abhay, one of his friends, who is actively involved in the export and import of
goods. Abhay told Kartik that the export of goods requires a special ‘Procedure’.
Abhay also explained the advantages and disadvantages of the International
business to Kartik.
a. Discuss the procedure which is required to be followed by Kartik for the export
of goods.
 b. Also, discuss the various advantages and disadvantages of the International
business to Kartik.

22. List the major exports and imports in ancient India. [3]

OR
Which hindrance of commerce is highlighted in the following activities?
i. It removes the geographical separation between producers and consumers.
ii. Warehousing facilitates holding of goods till they are required.
iii. Advertising informs the consumers about the goods and services available in the
market.
iv. Trade provides an organised market where buyers and sellers can contact each other.
v. Banking and Financing Institutions provide necessary funds to carry on business
activities.
vi. There exist a time gap between production and consumption of goods.
vii. Insurance protects the goods in case of damage due to theft, fire, accidents.

23. What do you mean by pavement traders? [3]

24. Equity Shares are known as Risk Capital. What is your view about it? [3]

OR
What are the advantages and disadvantages of preference shares?

25. Geeta Pustak Bhandar sells only religious books. But all kinds of books are [4]
available at 'Kapoor Pustak Bhandar'. Both of them are examples of Small Scale
Retail Trade. Even then the nature of their trades is different from each other.
Identify the nature of the difference between the trades of both of them and explain
it.

OR
Write the disadvantages of departmental stores.

26. People misinterpret business as having only economic objectives. Make the [4]
concepts clear regarding the objectives of the business.

OR
Briefly explain any four auxiliaries to trade.
27. Differentiate between traditional business and e-business. [4]

28. Explain the four advantages of being a MNC. [4]

29. Business is a part of society. Explain this statement in the context of Social [4]
Obligation of Business.

30. Explain the need for entrepreneurship development? [4]

31. Write a detailed note on features, structure, objectives and functioning of WTO. [6]

OR
Discuss briefly the factors that govern the choice of mode of entry into international
business.

32. List the documents required for the incorporation of a company. [6]

OR
Jagat is running a grocery store under the name 'Morning Needs' in a local market. He
takes all decisions about business himself, without any interference from others and
also earns a direct reward for his risk-bearing.
In the context of the above case:
a. Identify and define the form of business organization in which Jagat has promoted
his business.
b. State any four features of this form of business organization.

33. Gurpreet is planning to start a Diagnostic Centre in Ambala. He visits his uncle Mr. [6]
Amarnath in Patiala, who is successfully running a Diagnostic Centre for many
years, to seek his guidance. Mr. Amarnath tells Gurpreet that the capital needs of
his business can be divided into two categories. Firstly, he will need funds to buy
land and building, machinery and furniture and fixtures. Secondly, funds Tjvill be
required to meet day-to-day operations such as maintaining stocks, bills receivables
and for meeting current expenses like salaries, wages, taxes, and rent.
In the context of the above case answer the following:
a. Identify and explain the two types of capital being described above by quoting
lines from the paragraph.
b. Briefly outline any two factors that are likely to affect the requirem ents of each
of the two types of capital.
34. Danush visited a new restaurant 'Darbaar' with his parents. They all liked the food [6]
served in the restaurant. After a week Danush took his friends to 'Darbaar' and
placed an order for the same dishes that he had liked during his previous visit. But
to his surprise, he found that the taste of the food was not as good as it was during
his previous visit. As a result, he felt very disappointed.
In the context of the above case, answer the following questions:
a. Identify the feature of services being discussed above.
b. Explain briefly three other features of services.