KENDRIYA VIDYALAYA SANGATHAN, AGRA REGION

SESSION ENDING EXAMINATION (2019-20)

CLASS: XI (SET-V)
SUBJECT: BUSINESS STUDIES (054)

MAX.MARKS: 80 TIME: 3 HOURS

GENERAL INSTRUCTIONS:
1. There are total 34 questions in this question paper and attempt all parts of a question together
2 Answer to questions carrying 1 mark (SECTION-A) may be from one word to one sentence.
3. Answer to questions carrying 3 marks (SECTION-B) may be from 50-75 words.
4. Answer to questions carrying 4-5 marks (SECTION-C & D) may be about 150 words.
5. Answer to questions carrying 6 marks (SECTION-E) may be about 200 words.
(SECTION-A)
Q1. Which of the following was not a major trade centre in ancient India- 1
a)Patliputra
b)Surat
c)Kaveripatta
d)Gandhi Nagar
Q2. The reward a businessman gets for bearing the risks is called: 1
(a)Remuneration
(b)Bonus
(c) Commission
(d) Profit
Q3. The Karta in joint Hindu family business has- 1
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability
Q4. A partner whose association with the firm is unknown to the general public is called: 1
(a)Active partner
(b) Sleeping partner
(c) Nominal partner
(d) Secret partner
1
Q5. Overdraft facility is available only on- 1
(a)Current account deposits
(b) Saving account deposits
(c) Recurring deposits
(d) Fixed deposits
Q6. Equity shareholders are called: 1
(a)Owners of the company
(b) Executives of the company
(c) Partners of the company
(d) Guardian of the company
Q7. Which of the following cannot be protected under copyright? 1
(a) music
(b) drawing
(c) video games
(d) actors
Q8. NSIC is at the top of hierarchy in the administrative set for the promotion and development
of small scale industries. (True/ False) 1
Q9.Departmental stores can do with a small amount of capital. (True/ False) 1
Q10. Narula's is an example of: 1
(a) Mail order houses
(b) General stores
(c) Chain stores
(d) Department
Q11. ……is the primary objective of the business. 1
Q12....... model allocates tasks, obligations and risks among the public and private partners in an
optimal manner. 1
Q13. Every importer is required to secure the sanction of foreign exchange in India. All foreign
exchange transactions are regulated by the……….. department of RBI. 1
Q14. Ragini has insured her house for ₹ 5,00,000 against the fire. There is a fire and Ragini
suffers a loss of ₹ 1, 00,000. How much amount she can recover from the insurer? 1
Q15. Define working capital. 1
Q16. Startup India Scheme was launched by which ministry? 1
Q17. What is the spirit behind implementing GST by existing government? 1
Q18.Gas authority of India Ltd. (GAIL) is carrying on various projects of energy and power.
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Majority of its shares are held by the government of India. It was registered under the previous
Companies Act. It enjoys all the characteristics of a company. The board of directors is
appointed by the government .The Board and shareholders are responsible for the efficient
working of the company. The company prepares its annual report and submits to the appropriate
authorities. Name the type of public sector enterprise referred to in the above para. 1

Q19.Rekha Garments has received an order to export 20, 000 men's trousers to Swift Import Ltd
located in Australia. Rekha garments makes necessary enquiry about the credit worthiness of
Swift Import Ltd and demand letter of credit from it. After a week, Rekha garments got a letter
of credit issued by the importer's bank. Identify the next step of the procedure that Rekha had to
go through. 1

Q20. Match the columns: 1

(i)Withdrawal Of money from ATM a) B2C commerce

(ii)Employees send their daily report through-mail b) C2C commerce

(c) Intra-Commerce

(SECTION-B)

Q21. Distinguish between private company and public company on the basis of - 3
i) Number of directors
ii) Members
iii) Transfer of shares

Q22. Vithal Rao has a shop in Chawdi Bazaar which deals in antique idols various God and
Goddess. He has taken an insurance policy on his shop and the stock in the shop. While taking
the policy, he conveyed his intention to the insurance company that he should be provided cover
under all possible risks. The insurance company convinced Vital Rao that the policy was
comprehensive and covered every probable risk. During the tenure of the policy, an earthquake
occurred and the shop and stock of Vithal Rao destroyed completely. He approached the
insurance company for compensation of loss.
However the insurance company refused to grant him compensation on the ground that ‘loss by
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act of God’ was not covered under the policy.
On the basis of above case, answer the following questions-
a) Identify the principle of insurance violated by the insurance company.
Do you think that Vithal Rao has ‘insurable interest’ in the shop and stock destroyed?
b) Explain the term given in part (b). 3

Q23.” A market research agency undertakes market research and provides services on this aspect
to its clients on fees basis.” Mention type of outsourcing involved and identify two other
activities which can be covered under this type of outsourcing.
3
Or

Explain the following:

1. C2C 2. B2B

Q24. Kunal Ltd deals in a variety of consumer products like toiletries, groceries, electronic,
clothing etc. the work place has been divided into a number of departments and every department
sells a particular commodity. In this way almost all the needs of customers are fulfilled under
one roof.

Identify the type of retail trade done by Kunal Ltd and state its two features. 3

Q25. India, known as the home of spices, boasts a long history of trading with the ancient
civilisations of Rome and China. Today, Indian spices are the most sought-after globally, giving
their exquisite aroma, texture, taste and medicinal value. India is the world’s largest producer,
consumer and exporter of spices, the country produces about 75 of 109 varieties and accounts for
half of global trading in spices. Top spices produced in the country include pepper, cardamom,
chilli, ginger, turmeric etc.

Among others major importer of Indian spices are USA, China, UK, Sri-lanka and Germany.

On the basis of the aforesaid information about spices, enumerate the three benefits available to
the Indian business firm who are engaged in spice export. 3

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 (SECTION-C)

Q26. Mr Bhuvan is a chartered accountant in a multinational company. He gets ₹ 1, 85,000 per

month as his salary. On weekends, Mr. Bhuvan goes to nearby village and teaches some slum
children, he does not charge anything from them, he does it out of sympathy and concern for
poor children. This gives him mental and psychological satisfaction.

(a) Working as CA in a MNC refers to which type of human activity?

(b) Teaching students in slum is which type of human activity?
(c) Give two differences between the activities identified in part (a) and part (b). 4

Q27. What is electronic mode of doing business? Explain three benefits of such type of
business. 4

Q28. What is role of business in environment protection in present context? 4

Or

What is the social responsibility of business towards- (i) government (ii) owners?

(SECTION-D)

Q29. What is joint venture? Discuss it four benefits with explanation. 5

Q30. Rohit has done B.tech with specialisation in electrical engineering. He has decided to set up
a factory to manufacture electrical goods on small scale basis. He wants to seek marketing
support from the organisation established by the government of India so that he can concentrate
on manufacturing without worrying for selling his products. State the organisation to which he
should contact for this purpose and state any four services provided by this organisation. 5

Q31. An exporter has produced some goods and also obtained the pre-shipment inspection
report. Briefly explain the next five steps in the export procedure to be taken by him. 5

Or

Explain the following documents in brief-

i) Certificate of origin
ii) Mate’s receipt
iii) Bill of lading
iv) Letter of credit
v) Shipping bill

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 (SECTION-E)

Q32. Manjeet Pvt. Ltd is a reputed company manufacturing computers. The company is earning
a considerable profit. Both the proprietors and the employees are putting their best efforts to
make good quality products available to the customers at low price, paying its shareholders a
good amount of dividends and the employees a reasonable remuneration. This contributes to the
successful operation of the business. With increased profits over the time, the company’s
foundation becomes strong and it earns a good reputation in the society. It utilises its profit to
finance its growth and expansion requirements.

Explain the role of profit in the context of Manjeet Pvt. Ltd by quoting the lines from the above
para. 6

Or

After completing his study, Sarthak decided to enter into business to earn profits and create
employment opportunities in the country. Taking advantage of the ‘start up’ scheme of
government of India. He decided to venture into the business manufacturing acupressure chairs.
He decided to sell his products not only in India but also abroad.

He established his factory in remote village of Uttar Pradesh and initially employed 20 workers.
Being of cautious nature, he insured his machine and factory building against fire, theft and
natural calamities. For the purpose of finance, he obtained a loan from SBI. For creating
demands for his product, he gave a contract to an advertising company.

a) In which category of industry did Sarthak venture into?

b) Is sarthak innovative? Support your answer.
c) “He decided to sell his products not only in India but also abroad.” Which category of
trade is being referred here?
d) Sarthak used number of auxiliaries to trade. Identify them.(any two)
e) Give the name of industry which is commonly used for auxiliaries to trade.

Q33. Define E-banking and discuss various ways of conducting transactions in E-banking. 6

Q34. A seminar was conducted held in New York on the problems of finance. Its topic was-“The
Different Finance Sources available at Global level in the modern context.”200 representatives
from different countries participated in this seminar. All the representatives expressed their
respective opinions. One of the sources of finance discussed in the seminar was such through
which the foreign companies could issue their securities in India. Looking at great possibilities of

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obtaining capital from the investors in India, all of them showed a great interest in the discussion
of the source. Another source of finance which created interest in everyone was the sources
through which money could be obtained from the investors in America and other European
countries. Since this source was concerned with a very big area, the number of people who took
interest in it was also large. One of the Indian representatives threw light on special
characteristics of this source. His presentation was appreciated by one and all. In the final session
of the seminar, the discussion took place on such a source of finance which could be used in
America. In the end of seminar, the organisers thanked all the guests, and the seminar came to a
successful conclusion.

In the above paragraph, three international sources of finance were discussed. Identify them an
also quote the lines from the above para. 6

Or

Madhav sales Pvt. Ltd. owns the agency of different food products, which sells goods of
different brand to retailers after purchasing them from several companies. It purchases almost all
goods for cash while it’s all sales are on credit of one month. So the company keep struggling
with the short term finance. To overcome this problem, the company’s finance department held a
meeting. The chairperson of the meeting asked the members to express their views on the
solution of this problem. The first person said, “We should use a source of finance which does
not involve any bureaucracy and legal problems and the market of which maintains secrecy.”
The second person’s opinion was that the company often needs cash credit and overdraft.
Therefore, the source of finance should select considering this fact. The view of the third person
was that the company should also buy goods on credit. The chairperson of the meeting listens to
the suggestions of all and, to take final decision, asked them to be present in a meeting next
week.

Identify the source of finance as suggested by different person and also quote the lines in each
case from the above para.

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 KENDRIYA VIDYALAYA SANGATHAN, AGRA REGION
SESSION ENDING EXAMINATION (2019-20)
CLASS: XI (SET-V)
SUBJECT: BUSINESS STUDIES (054)
MARKING SCHEME
1) (d) Gandhi nagar
2) (d) Profit
3) (b) Unlimited liability
4) (d) Secret partner
5) (a)Current account deposits
6) (a)Owners of the company
7) (d) actors
8) True
9) False
10) (c)Chain stores
11) Profit
12) PPP
13) Exchange control department.
14) ₹ 1,00,000
15) Working capital refers to funds required for day to day business operations.
16) Ministry of commerce and industry
17) One nation, one tax.
18) Government company
19) Obtaining export licence
20) i-a, ii-c.
21) One mark for each correct difference
22) a) utmost good faith ( 1 mark )
b) Yes ( 1 mark)
c) Meaning of insurable interest ( 1 mark)
23) It is KPO. Other activities -1) investment research services 2) business research
Services 3) data analysis and interpretation 4) legal research services 5) patent
Research services . (Any two)
Or
Correct explanation with 1.5 mark each
24) Kunal Ltd is running departmental store. Any two features carrying one mark each.
 25) One mark for each correct point with explanation

26) a) Economic activity (1 mark)

b) Nom-economic activity (1mark)
c) Two differences (2 marks)
27) 1 mark for meaning of E-business.
1 mark for each benefit of e-business with explanation.
28) Any four point for 1 mark each with explanation.
Or
2 marks for each group.
29) 1 mark for meaning and 1 mark each for its benefits with explanation.
30) 1 mark for identification as NSIC. 1 marks for each services with explanation.
31) 1 mark for next five step as- i) Excise clearance
ii) Obtaining certificate of origin iii) packing and forwarding iv) appointing clearing and
forwarding agent v) Getting goods insured
Or
1 mark each for correct explanation
32) Role of profit-(½ mark for heading and 1 mark for quoting in each point)
i) Source of income- “paying its share holders……………reasonable remuneration”
ii) Indication of efficient working of business- “this contributes to the successful operation of the
business.”
iii) Builds up reputation of business- “with increased
profits……………………………..reputation in the society.”
iv) Sources of funds for meeting expansion requirements- “it utilizes its
profits……………….expansion requirement
Or
a) 1 mark for name of industry as Assembling industry
b) ½ marks for yes and ½ mark for reason.
c) ½ mark each for internal and external
d) 1 mark for each identification as banking , insurance and advertisement (any two)
e) 1 mark for Territory industry
33) 1 mark for meaning and 1 mark each for any five ways of e-banking (ATM, debit card, credit
card, internet banking and mobile banking etc.)
34) 1 mark for identification and 1 mark for quoting in each source-
i) IDR- “. One of the sources of finance discussed in the seminar was such through which the
foreign companies could issue their securities in India.”
ii) GDR-“Another source of finance which created in everyone was the sources through which
money could be obtained from the investors in America and other European countries.”
iii) ADR- “In the final session of the seminar, the discussion took place on such a source of
finance which could be used in America.”
Or
1 mark for identification and 1 mark for quoting in each source
(i) ICD- “We should use a source of finance which does not involve any bureaucracy and legal
problems and the market of which maintains secrecy.”
(ii) Loan from Commercial Bank-“often needs cash credit and overdraft.”
(iii) Trade credit- “the company should also buy goods on credit”
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