Directorate of Education, GNCT of Delhi

Practice Paper
Session: 2024-2025
Class: XI
Business Studies (054)

Duration: 3 HOURS Maximum Marks: 80

GENERAL INSTRUCTIONS:
1. This question paper contains 34 questions.
2. All questions are compulsory.
3. Question no. 1 – 20 carry 1 mark each.
4. Question no. 21 – 24 are short answer type - I carrying 3 marks each (50 to 75
words).
5. Question no. 25 – 30 are short answer type – II carrying 4 marks each (about 150
words).
6. Question no. 31 – 34 are long answer type carrying 6 mark each (about 200 words)
7. There is no overall choice. However, an internal choice has been provided in 2
questions of three marks, 2 questions of four marks and 2 questions of six marks.

S.NO. QUESTION MARKS

1. GMR Industries entered the airports space in early 2000 and is today 1
counted amongst the top 5 private airport developer and operators
globally.GMR Industries presently owns and operates Delhi International
Airport and Hyderabad International Airport. Apart from being the largest
private airport company in India, GMR Industries is the only Indian airport
developer to have developed and operated airports outside India. Identify
the type of industry being discussed in above case.
(a) Primary
(b) Secondary
(c) Tertiary
(d) All of the above

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2. Bhagat ji di hatti is a famous grocery store providing good quality grocery at 1
wholesale prices in tilak nagar market. They are running this store since
three generations. All the family members run the business together. Now
the senior most member wants to retire and let others run the business.
Who will be next karta?
a) The youngest member
b) The next eldest member
c) The karta himself
d) The minor son
3. There are two statements marked as Assertion (A) and Reason (R). Read 1
the statements and choose the appropriate option from the options given
below
Assertion (A): an active partner contributes capital, takes part in the normal
business decision making and his liability is unlimited.
Reason (R): Minor has right to share profits but his liability is limited.
a) Both the Assertion (A) and Reason (R) are true and Reason
(R) is the correct explanation of Assertion (A)
b) Both the Assertion(A) and Reason (R) are true, but Reason (R) is
not the correct explanation of Assertion (A)
c) Assertion (A) is true, but Reason (R) is false
d) Assertion (A) is false, but Reason (R) is true
4. Read the following statements carefully: 1
Statement I: Departmental undertaking is most suitable when national
security is concerned.
Statement lI: Departmental undertaking is established under a Special Act
of the Parliament.
In the light of given statements, choose the correct alternative from the
following:
A. Both the statements are true.
B. Both the statements are false.
C. Statement I is true, Statement II is false.
D. Statement II is true, Statement I is false.
5. Which of the following is not covered under general insurance? 1
(a) Fire insurance
(b) Theft insurance.
(c) Life insurance
(a) marine insurance

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6. Without disclosing that he is suffering from TB, Mr. A gets himself 1
insured against death for rupees 10 lakhs. He lives for another three-
four years and dies due to TB. The insurance company comes to
know about Mr. A’s illness only after his death. Now, under these
circumstances, the insurance company is not liable to pay anything
to the dependents of Mr. A as the contract between the insurance
company and Mr. A is void. Identify the principle of insurance to
which the above example is related:
(a) Utmost good faith
(b) Insurable interest
(c) Indemnity
(d) Subrogation
7. 1

Identify the lmage shown:

(a)Departmental undertaking
(b)Statutory Organisation
(c)Government Company
(d) Joint Venture

For Visually Impaired Candidates:

……… form of PSU has the greatest autonomy.
(a) Departmental undertakings
(b) Public corporation
(c) Government company
(d) None of the above

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8. There are two statements marked as Assertion (A) and Reason (R). Read 1
the statements and choose the appropriate option from the options given
below
Assertion (A) There is a need for separate legislation of the
Parliament for formation of government company.
Reason (R) Government company can be established by fulfilling
requirements of the Indian Companies Act.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the
correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
9. “It has a wide reach as on one hand it allows the seller and access to the 1
global market and on the other hand, it offers to the buyer, freedom to
choose, products from almost any part of the world” Which benefit of e-
business is described in above lines?
(a) Speed
(b) Ease of formation
(c) Global reach
(d) Convenience

10. Which of the following is an example of a B2B transaction? 1

a) A customer buying a laptop from an electronics store
b) A car manufacturer buying tires from a tire supplier
c) A person selling a handmade item on an online marketplace
d) A customer ordering grocery from an online store.

11. Which responsibility of the business is not the responsibility of the business 1
to the government:
(a) Following the pollution laws as set by the government
(b) Establishment of the industrial undertaking as per the government norms
(c) Providing after sales service
(d) Payment of the fees, tax, surcharge etc. with honesty.

12. Which of the following is capable of doing maximum good to society? 1

(a) Business success
(b) Laws and regulations
(c) Ethics
(d) Professional management

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13. Match the statements given in column I with the various constituents of e- 1
business given in column II

COLUMN I COLUMN II

(a) i. Intra-B
Both the parties involved in e-commerce Commerce
transactions are business firms

(b) ii. B2C Commerce

Business firms at one end and its

customers on the other end.

(c) iii. B2B Commerce

Within a given business firm

(d) iv. C2C Commerce

From the consumer and the ultimate
destination is also consumers

Choose the correct option from the following:

A. (a)-(iii), (b)-(ii), (c)-(i), (d)-(iv)
B. (a)-(ii), (b)-(i), (c)-(iv), (d)-(iii)
C. (a)-(iv), (b)-(ii), (c)-(i), (d)-(iii)
D. (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
14. Which of the following is an example of unethical business practice? 1
(a) Transparent financial reporting
(b) Insider trading
(c) Fair competition
(d) Customer satisfaction
15. A technology startup, TechVision Ltd, is developing an innovative 1
wearable health device. After a successful product prototype, they need
funding for production and marketing. TechVision's founders want to
maintain ownership but are open to external funding options with
manageable control over business decisions. What financing option would
be most suitable for TechVision if they want to maintain ownership while
raising funds?
a) Bank Loan
b) Venture Capital
c) Equity Crowd-funding
d) Angel Investor

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16. The debenture, which does not carry any charge/security on the assets of 1
the company. These are also known as “Naked Debentures”. Identify the
type of debenture:
a) Secured debenture
b) Unsecured debenture
c) Bearer debenture
d) Convertible debenture
17. Ritwik started a business of supplying IT related services to business 1
organisations under the name ARK IT Solutions. He got the exclusive right
over the name of his firm by following due legal procedure so that no other
firm can copy his firm’s name. Identify the IP right discussed in this case.
a) Copyright
b) Trademark
c) Patent
d) All of these.
18. Prakash is a retailer, who runs a small retail shop in his locality dealing with 1
a variety of products required to satisfy the day to day needs of the people
in his locality. He sells on credit to trusted customers and free home delivery
also.Which type of retail shop is run by Prakash?
(a) Departmental Stores
(b) General stores
(c) Multiple Shops
(d) Speciality shops.
19. Rajiv is an exporter who has received an inquiry from a potential buyer 1
regarding the purchase of his products. The buyer wants detailed
information about the products, including quality, grade, size, weight, type of
packaging, and other specifications. To provide a clear understanding of
the terms, Rajiv sends a formal quotation that includes all the necessary
details to help the buyer make an informed decision.
What is the formal quotation Rajiv sent, which includes detailed information
about the product's quality, grade, size, weight, type of packaging, etc.,
called?
Rajiv, an exporter sent complete information about the quality, grade, size,
weight, type of packaging, etc. about the product on his enquiry. Such
quotation is known as:
(a) Performa Invoice
(b) Indnent
(c) Letter of Information
(d) Enquiry Performa

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20. Statement I: The GST has replaced 17 indirect taxes (8 Central + 9 State 1
levels) and 23 cesses of the Centre and the States, eliminating the need
for filing multiple returns and assessments and rationalising the tax
treatment of goods and services along the supply chain from producers to
consumers.
Statement II: GST comprises Central GST (CGST) and the State GST
(SGST), subsuming levies previously charged by the Central and the
State governments respectively.
(a) Statement I is true, Statement II is false.
(b) Statement II is true, Statement I is false.
(c) Both the statements are true.
(d) Both the statements are false.
21.(A) What are the differences between primary and secondary industry? 3

OR

21.(B) Insurance is known as the tertiary industry. Explain.

22. (A) Explain three features of a public-private partnership. 3

OR
22. (B) What are the features of an MNC?

23. “The directors of Jindal limited have decided to expand the business by 3
adding two new products. To produce the two new products, they required
to import and install fully Automatic Machinery worth ₹120 crores.”
a) As a Finance Manager, advise the directors about various sources
(Any two) of finance available to the company.
b) If you would have to choose one of the suggested sources of finance,
then which would be the best and also give reasons behind your choice.
24. Fixed shop retailers are shops which have a permanent establishment to sell 3
their products. One of their characteristics is that they need not move from
place to place for product selling. In the same manner, specify the other
characteristics of these retailers and explain its classification.

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 25. Dr. Anant Kumar is an orthopedic surgeon in Jaipur Golden Hospital and
Dr. Sukumar Anand, his friend is a Pediatrician who has set his own clinic. 4
Dr. Sukumar Anand’s wife Ms. Sukumar Priya Anand operates a retail store
specializing in the selling of antiques. On the basis of the given information
about different business, answer the following questions:
a) Identify the type of economic activity undertaken by, Dr Anant
Kumar, Dr. Sukumaran and and Ms. Sukumar Priya Anand.
b) Differentiate between them on basis of nature, capital investment,
and transfer of interest.

26. (A) Why do the enterprises need to adopt pollution control measures? 4
OR

26. (B) State the meaning of Corporate Social Responsibility as per the Companies
Act 2013.

27. “Solid Pipes Ltd. is a multi-location, multi-product company, manufacturing

pipes in stainless steel/exotic material in wide size ranges, for a wide 4
spectrum of applications. It now wants to cater to the Asian market and
decided to invest in new Hi-tech machines. Since the investment is large,
the finance manager wants to raise funds through the cheapest long-term
source of finance.”
On the basis of the given information about Solid Pipes Ltd., answer the
following questions:
a) Identify and explain the source of finance to be used by the
company to meet its funds requirement.
b) State any three merits of the source of finance identified in part (a).

28. (A) What are the criteria to define Micro, Small and Medium enterprises by the 4
Government of India? Explain.
OR
28. (B) Explain the role of National small Industries Corporation(NSIC) for
development of small scale industries with special reference to rural and
backward areas.

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29. Ajay is a trader dealing in low cost fashionable footwear. In order to sell his 4
merchandise he opens his shop on fixed days in different markets.
In context of the above case:
(a) How would you classify Ajay as a type of retailer?
(b) Name the category of the type of retail trade as identified in part
(a) of the question under which he should be placed.
(c) Also, briefly explain any two other types of retailers which fall in the
same category as Ajay as identified in part (a) of the question.

30. “It acts as a proof that goods have actually been manufactured in the 4
country from which the export is taking place.”
(I) Which certificate is highlighted in this statement?
(II) Explain any two goods related documents required in export.
31. Phoenix Technologies Ltd., have developed such a washing machine 6
through years of research which requires very less water for washing
clothes and cleans them without damaging the cloth, as compared to other
washing machines presently being sold in the market. This machine use 3D
wash system, whereby there are 3 nozzles to spray water inside the
drum while it rotates 360 degree. This facilitates complete of detergents
and deep penetration of detergents into the clothes while washing. During
the rinsing stage, the 3D wash system helps better penetration of fresh
water in to the clothes, thereby minimizing any detergent traces in the
clothes. This machine is available at a highly competitive price to motivate
people from lower middleclass to buy it. The company wants to provide
information about new features, price, availability and brand name to the
maximum potential customers. On the basis of the given information about
Phoenix Technologies Ltd., answer the following questions:
a) Explain the service facility/ aids to trade which the company can
utilize to generate maximum sales.
b) Explain other service facility/aids to trade facilitating smooth
movement of goods from the producer to the ultimate
consumers.

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32. (A) Explain in detail the principles of Insurance? 6

OR
32. (B) State Six Differences Between Life Insurance, Fire Insurance, and
Marine Insurance?

33. Bhupendra was a very industrious sales executive with a small herbal 6
cosmetic manufacturer. He earned a good salary and a commission on the
business he brought for the firm and had a very good command of the
Delhi market for which he had virtually become indispensable. He was
aware of the enviable position he held in the firm and thought aloud:
"The key to success in any business is the sale of its products. The
beginning and end of the business cycle is nothing but sales and "other"
people working in the factory to manufacture products are mere cogs in the
business machine set in motion by sales people. So why carry this burden
and get only a tiny share of the prosperity of the firm? Instead of others
enjoying the fruits of my labour, why should I not start my own business?”
(a) Should Bhupendra take a leap? Give reasons for your answer.
(b) State any four functions Bhupendra will perform as an entrepreneur
in relation to economic development.
34. (A) Rajasthan handicraft has received a grand order for handmade products 6
from a German company. The exporter has obtained the pre shipment
inspection report under the export quality control and Inspection Act 1963
and also got the excise clearance certificate from the authorities.
Explain the next six steps to be taken by the Indian counterpart to
export these goods.
OR

34. (B) Nipun is a successful businessman who is engaged in manufacturing auto

spare parts. The products manufactured by him are sold not only in India,
but are also exported to various countries like Singapore, Switzerland,
Belgium, etc. On the basis of given case, answer the following questions:
(a) Identify the two kinds of business in which Nipun is engaged.
(b) Differentiate between the two types of business as identified in part
(a) of the question.

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