Business Studies · Sample Paper 1

General instructions

Section A · Objective

1. Question 11 mark

   Fishing and mining are examples of

   1. A.genetic industries
   2. B.extractive industries
   3. C.manufacturing
   4. D.construction
2. Question 21 mark

   Which of these removes the hindrance of time?

   1. A.transport
   2. B.warehousing
   3. C.banking
   4. D.advertising
3. Question 31 mark

   The liability of a sole proprietor is

   1. A.limited
   2. B.unlimited
   3. C.nil
   4. D.limited to capital
4. Question 41 mark

   A partner who contributes capital but takes no part in running the business is a

   1. A.nominal partner
   2. B.sleeping partner
   3. C.secret partner
   4. D.partner by estoppel
5. Question 51 mark

   In a Joint Hindu Family business, the business is managed by the

   1. A.eldest daughter
   2. B.karta
   3. C.board of directors
   4. D.partners
6. Question 61 mark

   LIC is an example of a

   1. A.departmental undertaking
   2. B.statutory corporation
   3. C.government company
   4. D.private company
7. Question 71 mark

   The principle of insurance under which the insured must disclose all material facts is

   1. A.indemnity
   2. B.utmost good faith
   3. C.subrogation
   4. D.contribution
8. Question 81 mark

   Services can't be stored. This feature is called

   1. A.intangibility
   2. B.inconsistency
   3. C.inventory (perishability)
   4. D.involvement
9. Question 91 mark

   Online selling between two businesses is called

   1. A.B2C
   2. B.C2C
   3. C.B2B
   4. D.C2B
10. Question 101 mark

    Contracting out a firm's non-core work to an outside agency is

    1. A.e-banking
    2. B.outsourcing
    3. C.franchising
    4. D.licensing
11. Question 111 mark

    Social responsibility towards consumers includes

    1. A.fair wages
    2. B.fair dividend
    3. C.quality goods at fair prices
    4. D.paying taxes
12. Question 121 mark

    Retained earnings are a source of

    1. A.borrowed funds
    2. B.owner's funds
    3. C.short-term finance only
    4. D.foreign finance
13. Question 131 mark

    Which security carries a fixed rate of interest?

    1. A.equity share
    2. B.preference share
    3. C.debenture
    4. D.retained earnings
14. Question 141 mark

    Which body is the apex institution for financing MSMEs in India?

    1. A.NABARD
    2. B.SIDBI
    3. C.RBI
    4. D.SEBI
15. Question 151 mark

    Retailers who move from place to place selling goods are

    1. A.itinerant retailers
    2. B.fixed-shop retailers
    3. C.chain stores
    4. D.departmental stores
16. Question 161 mark

    GST was introduced in India on

    1. A.1 April 2016
    2. B.1 July 2017
    3. C.1 January 2018
    4. D.1 July 2019
17. Question 171 mark

    Which is the simplest mode of entering international business?

    1. A.joint venture
    2. B.exporting
    3. C.wholly owned subsidiary
    4. D.contract manufacturing
18. Question 181 mark

    The document issued by a shipping company acknowledging receipt of goods on board is the

    1. A.shipping bill
    2. B.bill of lading
    3. C.letter of credit
    4. D.mate's receipt
19. Question 191 mark

    Assertion (A): Interest on debentures must be paid even if the company makes a loss.

    Reason (R): Debenture holders are creditors of the company.

    1. A.Both Assertion (A) and Reason (R) are true, and R is the correct explanation of A.
    2. B.Both Assertion (A) and Reason (R) are true, but R is not the correct explanation of A.
    3. C.Assertion (A) is true, but Reason (R) is false.
    4. D.Assertion (A) is false, but Reason (R) is true.
20. Question 201 mark

    Assertion (A): In a government company, the government holds at least 51% of the paid-up share capital.

    Reason (R): Government companies are formed under a special Act of Parliament.

    1. A.Both Assertion (A) and Reason (R) are true, and R is the correct explanation of A.
    2. B.Both Assertion (A) and Reason (R) are true, but R is not the correct explanation of A.
    3. C.Assertion (A) is true, but Reason (R) is false.
    4. D.Assertion (A) is false, but Reason (R) is true.

Section B · Short answer

1. Question 213 marks

   Distinguish between business, profession and employment on any three bases.

2. Question 223 marks

   State any three features of a cooperative society.

3. Question 233 marks

   Explain three types of bank accounts.

4. OR

   Question 233 marks

   Explain the principles of indemnity, subrogation and contribution in insurance.

5. Question 243 marks

   Give three benefits of e-business.

6. Question 253 marks

   State three problems faced by small businesses.

7. Question 263 marks

   Give three services a wholesaler provides to manufacturers.

Section C · Long answer I

1. Question 274 marks

   Give four arguments in favour of social responsibility of business.

2. Question 284 marks

   Explain four factors that affect the choice of the source of funds.

3. OR

   Question 284 marks

   Explain trade credit and factoring as sources of short-term finance.

4. Question 294 marks

   Explain any four documents used in export trade.

Section D · Long answer II

1. Question 306 marks

   Compare a sole proprietorship, a partnership and a company on six bases.

2. Question 316 marks

   Explain the features, merits and limitations of a departmental undertaking.

3. Question 326 marks

   Explain any three types of large-scale fixed-shop retailers with features of each.

4. OR

   Question 326 marks

   What is warehousing? Explain four types of warehouses.

5. Question 336 marks

   Who is an entrepreneur? Explain the characteristics of entrepreneurship and the role of Startup India.

6. Question 346 marks

   Explain the steps involved in executing an export order.

7. OR

   Question 346 marks

   Explain the merits and limitations of joint ventures as a mode of entry into international business.