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 Series ARSP/01 Set ~ 1
Roll No. Q.P Code 15/1/1
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 06 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34 questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

BUSINESS STUDIES

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. Business transaction taking place within the geographical boundaries of a nation is known as a domestic or [1]
national business. It is also referred to as internal business or home trade. Manufacturing and trade beyond the
boundaries of one’s own country is known as international business.
Permitting another party in a foreign country to produce and sell goods under your trademarks, patents, or
copyrights in lieu of some fee is another way of entering into international business. This is through ________.

a) sale of goodwill b) sale of copyrights

c) sale of trademark d) licensing and franchising

2. In which year National Small Industries Corporation(NSIC) was set up? [1]

a) 1953 b) 1954

c) 1956 d) 1955
3. Which of the following comes under the private sector? [1]

a) Joint Hindu Family b) All of these

c) Sole Proprietorship d) Partnership

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

a) Size of their operations b) Type of ownership

c) Place of business d) Merchandise handled

5. Expand KVIC [1]

a) King of Village Investment Culture b) Khadi and Village Industries Commission

c) Khadi and Village Industries Core d) King of Village Industries Commission

6. What is the method payment chosen by the customer at the time of physical delivery of goods? [1]
 a) Credit card payment b) Cash on delivery

c) Debit card payment d) Prepaid amount

7. Preliminary Contracts are signed: [1]

a) after the commencement of business b) after incorporation

c) after incorporation but before the capital d) before the incorporation

subscription
8. Which of the following issues faced by small businesses is incorrect regarding the raw materials required by [1]
them for production?

a) Low bargaining power due to the small b) Required raw materials are not available
quantity of purchases made by them easily

c) Large storage facilities to store the materials d) Compromise on the quality as they have to
pay high prices to get good quality materials
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 principle of ‘one man one vote’ governs the cooperative society. [1]
Reason (R): Irrespective of the amount of capital contribution by a member, each member is entitled to equal
voting rights.

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

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

11. To selling only children garments is the example of: [1]

a) General Store b) Single-product shop

c) Single line shop d) Specific shop

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

a) They undertake additional activities. b) They generally take the title of the goods
and bear the business risks in their own
name

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

13. The Karta in Joint Hindu family business has ________. [1]

a) Unlimited liability b) Limited liability

c) No liability for debts d) Joint liability

14. Which of the following is part of Village and Small Industries Sector? [1]
 a) Handlooms b) All of these

c) Sericulture d) Handicrafts
15. Noise pollution can be responsible for: [1]

a) mental disorder b) all of these

c) loss of hearing d) malfunctioning of the heart

16. Assertion (A): In case of loss arising out of any mishap, the most proximate cause of the mishap should be [1]
taken into consideration.
Reason (R): Principle of Proximate Cause says that the direct, most dominant and most effective cause of the
loss should be given priority.

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

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

17. Expand DIC [1]

a) District Industries Centers b) Directorate of Indian company

c) Directorate of Indian Corporation d) Directorate of Industry Corporation

18. Which of the following is not known as service industry? [1]

a) Insurance Industry b) Advertising Industry

c) Processing Industry d) Banking Industry

19. 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

20. Preliminary Contracts are: [1]

a) binding on the company b) binding on the guarantor

c) not binding on the company d) binding on the promoters

21. Why is it necessary to get registered with an Export Promotion Council? [3]
22. Bhavesh is running a Bakery Shop under the name 'Puri Bakers'. On the occasion of his relative's birthday, he [3]
supplied Cakes, Pastries and Pizza worth ₹ 3,000. However, Bhavesh refused to take money from his relative.
Will this supply of items from Bhavesh's Bakery will be classified as a business activity?
OR
Explain primary and secondary industries with the help of examples.
23. On a holiday, Dr. Ramdhari Arya accompanied his wife and two children to market for shopping. For shopping, [3]
they reached such a place where there were several small shops located in a big building. All of them, very
delightfully and easily, was moving from one shop to another. At these shops, the children liked several things.
Dr. Arya bought all the things which were liked by the children. Here, along with goods, there was a full
arrangement for entertainment and food. The special characteristic of this shopping complex was that it was
located at such a place in the city where all the people could come easily. After roaming about for some time, the
children insisted on having a cold drink. When the children looked around, they found a machine set up in a
corner. On the machine, it was written: Fresh Cold Drink, Only For You! In accordance with the instruction
 written on the machine, soon after inserting a coin, into it, a glass of cold drink was filled. The children satisfied
their thirst and moved ahead.
i. Identify the type of retail business as described in the above paragraph.
ii. Quoting the relevant lines writing down three characteristics of the type of retail business identified in (i).
iii. Tell the name of the Cold Drink Machine.
24. Mention the special features of Inter-corporate deposits. [3]
OR
Liver Pharmaceutical Limited was set up about ten years ago in a hilly region. The company's business was to
manufacture medicines. This company manufactured medicines related to particularly the diseases of the liver. At the
time of setting up the factory, 50,000 'Equity shares of the Face Value of' 100 only were issued. With the setting up of
this company, several people in the local area got employment. The medicines manufactured by the company were
being supplied all over the country. Now, besides growth in the size of the company, there was also an increase in the
capital need of the company. The company was, once again, preparing to seek the help of the public for arranging the
capital. In this context, the Top Management held a meeting. In the meeting, it was decided that first of all, from the
market survey, it should be ascertained in which particular security the investors are interested to invest their money.
The report received after the market survey was that in those days people wanted to have their share in the ownership
of the company and also they wanted that they should get their dividend at a fixed rate before the other shareholders.
Besides, the investors wanted that after a fixed period, their money invested by them should be refunded. The
company decided to issue the shares in accordance with the report of Market Survey. Quoting the relevant line,
explain what type of shares was decided by the company to be issued.
25. Point out the four features of a wholesaler. [4]
OR
Geeta Pustak Bhandar sells only religious books. But all kinds of books are 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.
26. Explain the objectives of business briefly. [4]
OR
Profit is not an objective but a requirement of the business. Do you agree with this statement? Support your answer
with reasons.
27. Describe briefly any two applications of E-business. [4]
28. Define Public-Private Partnership. Enlist its main features. [4]
29. Fast Track Ltd. is a leading manufacturer of automobile spare parts. The Managing Director (MD) of the [4]
company is of the view that business is an economic institution, which exists with the basic objective of profit
maximisation and assuming social responsibility is against this objective. However, one of the newly appointed
manager tried to convince the MD in favour of social responsibility by highlighting the various factors which
have forced and persuaded various companies to consider their social responsibilities. Discuss the factors which
might have been highlighted by the manager to the MD.
30. Do you think small business units can survive in a competitive market? Explain any three factors which make [4]
way for the scope of small business enterprises.
31. Write a detailed note on features, structure, objectives and functioning of WTO. [6]
OR
 Identify various organizations that have been set up in the country by the government for promoting country's foreign
trade.
32. Define a sole proprietorship firm. [6]
OR
Hemang has decided to promote an educational portal keeping in view the growing preference of students towards
online education. He enters into a contract with an IT company for the purchase of ten computers to set up the
business during the promotion of the company. However, after the incorporation, the company did not approve of it.
On the contrary, the company signed a contract with another supplier.
In the context of the above case:
a. Identify the type of contracts being described above.
b. Distinguish between the two types of contracts as identified in part(a) of the question.
33. Discuss the factors affecting the choice of source of funds. [6]
34. Explain the main services of commercial banks. (Any four) [6]