Business Studies · Sample Paper 3

General instructions

Section A · Objective

1. Question 11 mark

   Industries engaged in breeding plants and animals are

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

   Which is NOT a characteristic of business?

   1. A.dealing in goods and services
   2. B.profit earning motive
   3. C.risk and uncertainty
   4. D.no element of risk
3. Question 31 mark

   Maximum number of partners in a partnership firm (as per rules under the Companies Act, 2013) is

   1. A.10
   2. B.20
   3. C.50
   4. D.100
4. Question 41 mark

   A company whose shares are freely transferable and that can invite the public to subscribe is a

   1. A.private company
   2. B.public company
   3. C.one person company
   4. D.partnership
5. Question 51 mark

   In a cooperative society, voting is based on

   1. A.number of shares
   2. B.one member, one vote
   3. C.capital contributed
   4. D.seniority
6. Question 61 mark

   A joint venture is

   1. A.a single firm going global
   2. B.two or more firms pooling resources for a common purpose
   3. C.a government department
   4. D.a cooperative
7. Question 71 mark

   Which document is the basis of a contract of insurance?

   1. A.invoice
   2. B.policy
   3. C.cheque
   4. D.bill of lading
8. Question 81 mark

   Storage of goods to remove the hindrance of time is called

   1. A.transport
   2. B.warehousing
   3. C.banking
   4. D.advertising
9. Question 91 mark

   Buying and selling over the internet is

   1. A.e-commerce
   2. B.outsourcing
   3. C.franchising
   4. D.licensing
10. Question 101 mark

    Which is a form of BPO service?

    1. A.call centres
    2. B.manufacturing cars
    3. C.farming
    4. D.mining
11. Question 111 mark

    Responsibility of business towards investors includes

    1. A.fair return on investment
    2. B.fair wages
    3. C.quality products
    4. D.paying taxes
12. Question 121 mark

    Funds raised by issuing debentures are

    1. A.owners' funds
    2. B.borrowed funds
    3. C.retained earnings
    4. D.grants
13. Question 131 mark

    Lease financing gives the lessee the right to

    1. A.own the asset
    2. B.use the asset for a fixed rental
    3. C.sell the asset
    4. D.pledge the asset
14. Question 141 mark

    The main objective of the Startup India scheme is to

    1. A.close small firms
    2. B.promote entrepreneurship and innovation
    3. C.increase imports
    4. D.reduce employment
15. Question 151 mark

    A retailer who sells goods at the customer's doorstep is a

    1. A.departmental store
    2. B.hawker/pedlar
    3. C.supermarket
    4. D.mail-order house
16. Question 161 mark

    Which is a feature of a departmental store?

    1. A.sells one product line
    2. B.large establishment offering many departments under one roof
    3. C.located only in villages
    4. D.no service
17. Question 171 mark

    The difference between exports and imports of goods is the

    1. A.balance of payments
    2. B.balance of trade
    3. C.terms of trade
    4. D.exchange rate
18. Question 181 mark

    Which institution promotes India's exports?

    1. A.EXIM Bank
    2. B.RBI
    3. C.SEBI
    4. D.NABARD
19. Question 191 mark

    Assertion (A): Insurance is a contract of utmost good faith.

    Reason (R): Both parties must disclose all material facts.

    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): Wholesalers buy in large quantities and sell in small lots to retailers.

    Reason (R): Wholesalers deal directly with ultimate consumers.

    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 causes of business risks.

2. Question 223 marks

   State three features of a sole proprietorship.

3. OR

   Question 223 marks

   Distinguish between a private company and a public company on three bases.

4. Question 233 marks

   Give three reasons for the changing role of the public sector after 1991.

5. Question 243 marks

   Explain three limitations of e-business.

6. Question 253 marks

   Explain three responsibilities of business towards consumers.

7. Question 263 marks

   Explain three features of entrepreneurship.

Section C · Long answer I

1. Question 274 marks

   Explain four functions of commercial banks.

2. OR

   Question 274 marks

   Explain four types of communication services that help business.

3. Question 284 marks

   Explain four merits of retained earnings as a source of finance.

4. Question 294 marks

   Explain four benefits of international business to a firm.

Section D · Long answer II

1. Question 306 marks

   Explain the merits and limitations of a company form of organisation.

2. Question 316 marks

   What is a consumer cooperative store? Explain its merits and limitations.

3. OR

   Question 316 marks

   Explain the role of the Goods and Services Tax (GST) in internal trade, with its features.

4. Question 326 marks

   Explain the merits and limitations of equity shares as a source of finance.

5. Question 336 marks

   Explain the role of business in environmental protection.

6. OR

   Question 336 marks

   Explain the role of small business in India.

7. Question 346 marks

   Explain the steps in the import procedure.