Business Studies · Sample Paper 2

General instructions

Section A · Objective

1. Question 11 mark

   Which of these is an auxiliary to trade?

   1. A.mining
   2. B.insurance
   3. C.farming
   4. D.manufacturing
2. Question 21 mark

   Business risk arising from natural calamities is an example of a

   1. A.human cause
   2. B.natural cause
   3. C.economic cause
   4. D.physical cause
3. Question 31 mark

   The maximum number of members in a private company is

   1. A.50
   2. B.100
   3. C.200
   4. D.unlimited
4. Question 41 mark

   Which form of organisation is formed by voluntary association of members for mutual benefit?

   1. A.partnership
   2. B.cooperative society
   3. C.company
   4. D.sole proprietorship
5. Question 51 mark

   A partner who is not a real partner but lends his name to the firm is a

   1. A.sleeping partner
   2. B.nominal partner
   3. C.secret partner
   4. D.active partner
6. Question 61 mark

   Indian Railways is an example of a

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

   A company that operates in several countries with its headquarters in one is a

   1. A.joint venture
   2. B.global enterprise (MNC)
   3. C.public enterprise
   4. D.cooperative
8. Question 81 mark

   Which insurance is not a contract of indemnity?

   1. A.fire insurance
   2. B.marine insurance
   3. C.life insurance
   4. D.motor insurance
9. Question 91 mark

   A facility allowing a current account holder to withdraw more than the balance is

   1. A.cash credit
   2. B.bank overdraft
   3. C.fixed deposit
   4. D.recurring deposit
10. Question 101 mark

    Which is NOT a requirement for successful e-business?

    1. A.computer hardware and internet
    2. B.skilled personnel
    3. C.large warehouses
    4. D.secure payment system
11. Question 111 mark

    Business ethics refers to

    1. A.maximising profit
    2. B.socially determined moral principles for business
    3. C.legal rules only
    4. D.tax laws
12. Question 121 mark

    Equity shareholders are

    1. A.creditors
    2. B.owners
    3. C.lenders
    4. D.customers
13. Question 131 mark

    An unsecured promissory note issued by large companies to raise short-term funds is

    1. A.debenture
    2. B.commercial paper
    3. C.trade credit
    4. D.public deposit
14. Question 141 mark

    The micro, small and medium enterprises (MSME) are classified on the basis of

    1. A.number of employees only
    2. B.investment and turnover
    3. C.location
    4. D.profit
15. Question 151 mark

    A shop that sells everything at a uniform price, like 'all items ₹99', is a

    1. A.departmental store
    2. B.single-price store
    3. C.mail order house
    4. D.consumer cooperative
16. Question 161 mark

    Which is an example of a fixed-shop large retailer?

    1. A.hawker
    2. B.departmental store
    3. C.street trader
    4. D.cheap jack
17. Question 171 mark

    Import of goods for re-export is called

    1. A.export trade
    2. B.entrepot trade
    3. C.import trade
    4. D.internal trade
18. Question 181 mark

    The document by which an importer's bank guarantees payment to the exporter is a

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

    Assertion (A): A company has perpetual succession.

    Reason (R): The existence of a company is not affected by the death or insolvency of its members.

    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): Public deposits are a good source of long-term finance.

    Reason (R): Public deposits are generally accepted for a period of 6 months to 3 years.

    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

   Explain three objectives of business other than profit.

2. Question 223 marks

   State three merits of a partnership firm.

3. OR

   Question 223 marks

   State three limitations of a Joint Hindu Family business.

4. Question 233 marks

   Explain three features of a statutory corporation.

5. Question 243 marks

   Explain three steps in online transactions (e-commerce).

6. Question 253 marks

   Explain the responsibility of business towards (i) employees (ii) the government (iii) the community.

7. Question 263 marks

   Explain three measures taken by the government to support small businesses.

Section C · Long answer I

1. Question 274 marks

   Explain any four types of e-banking services.

2. OR

   Question 274 marks

   Explain four principles of insurance.

3. Question 284 marks

   Distinguish between equity shares and preference shares on four bases.

4. Question 294 marks

   Explain four services rendered by retailers to consumers.

Section D · Long answer II

1. Question 306 marks

   Explain the steps in the formation of a company.

2. Question 316 marks

   Explain the features, merits and limitations of a government company.

3. OR

   Question 316 marks

   Explain the benefits of international business to nations and to firms.

4. Question 326 marks

   Explain the merits and limitations of debentures as a source of finance.

5. Question 336 marks

   What is outsourcing? Explain its benefits and limitations.

6. OR

   Question 336 marks

   Explain the elements of business ethics.

7. Question 346 marks

   Explain the role of small business in rural India and the special problems faced by small businesses.