CBSE Class 11 Business Studies Sample Paper Term 1 Set A

Question 1. Which of the following is not an economic cause of business risks?
a) Interest rate fluctuations
b) Change in technology
c) Higher taxes
d) Negligence of employees
Answer: d) Negligence of employees

Question 2. Which one is not included in Public Corporations?
a) Air India
b) Indian Airlines
c) FCI
d) BHEL
Answer: d) BHEL

Question 3. Match the following:
(i) Hindrance of finance                        (a) Remove by transport
(ii) Hindrance of storage                      (b) Remove by advertising
(iii) Hindrance of communication        (c) Remove by bank
(iv) Hindrance of place (d) Remove by warehouse
Option
a) i-a, ii-d, iii-b, iv-c
b) i-c, ii-d, iii-a, iv-b
c) i-c, ii-d, iii-b, iv-a
d) i-c, ii-b, iii-d, iv-a
Answer: c) i-c, ii-d, iii-b, iv-a

Question 4.These are public undertakings brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments. It is a corporate person and has the capacity of acting in its own name. In the above para about which sector entreprise is discussed?
a) Private Sector
b) Public Sector
c) Public Corporation
d) Company
Answer: b) Public Sector

Question 5. All trades that will involve the transportation of goods over a body of water can be referred to as _________ Trade. This transport can be understood as the navigation over water by boat, ship, sailboat or barge, over oceans, lakes, canals or along rivers.
a) Marine Insurance
b) Maritime Trade
c) Import-Export Trade
d) Both (a) & (b)
Answer: b) Maritime Trade

Question 6. ________ is the oldest and most traditional form of organising public enterprises.
a) Public Corporation
b) Departmental Undertakings
c) Company
d) FCI
Answer: 

Question 7. Radio, Car, T.V. etc are the example of which industry?
a) Analytical industry
b) Synthetic industry
c) Processing industry
d) Assembling industry
Answer: d) Assembling industry

Question 8. These enterprises possess technological superiorities in their methods of production. They are able to conform to international standards and quality specifications, thus leading to the industrial progress of the country by optimally exploiting local resources and raw material. About which entreprise discussion is going on in the above para?
a) MNC
b) Joint Venture
c) Departmental Undertakings
d) Public COrporations
Answer: a) MNC

Question 9. Production of quality goods, To charge fair prices and To provide employment are the part of:
a) Individual Objectives
b) Social Objectives
c) Organisational Objectives
d) All of the above
Answer: b) Social Objectives

Question 10. Reconstruction of sick public sector units is taken up by:
a) MoU
b) BIFR
c) NRF
d) MOFA
Answer: b) BIFR

Question 11. For example, the demand for a particular product may decline due to a change in tastes and preferences of consumers from other producers. Decrease in demand will result in lesser sales and thereby lesser profits. This example indicates:
a) Financial Risk
b) Business Risk
c) Certaintity of Profits
d) Natural Risk
Answer: b) Business Risk

Question 12. Match the following: 
(i) Any company in which at least 51% of paid-up capital is                              (a) Legal existence
held by the central or state government   
(ii) It has a separate status independent of the government and                      (b) Accountability
also holds assets in its own name         
(iii) The employees of these entrprises are not government or                         (c) Government companies
civil servants and not governed by government rules and regulations
(iv) They are accountable to the ministry or the department concerned           (d) Statutory Corporations
Options
a) i-d, ii-a, iii-c, iv-b
b) i-d, ii-a, iii-b, iv-c
c) i-c, ii-a, iii-d, iv-b
d) i-c, ii-a, iii-b, iv-d
Answer: c) i-c, ii-a, iii-d, iv-b

Question 13.Match the following:
(i) The partner participates in the management of the firm                        (a) Secret partner
(ii) The partner who does not participate in the management of the          (b) Nominal partner
firm 
(iii) The partner is one whose association or relation                                  (c) Active partner
with the firm is not known to outsiders 
(iv) The partner does not contribute any capital, does not participate in   (d) Dormant partner
the management, does not have unlimited liability, and does not get
any share in the profit or loss of the firm 
Options:
a) i-c, ii-b, iii-a, iv-d
b) i-d, ii-c, iii-a, iv-b
c) i-c, ii-d, iii-a, iv-b
d) i-c, ii-d, iii-b, iv-a
Answer: c) i-c, ii-d, iii-a, iv-b

Question 14. Which one is not a part of business sevices?
a) Banking
b) Hotel Facility
c) Insurance
d) Communication
Answer: b) Hotel Facility

Question 15. One Person One Vote applies in
a) Company
b) Partnership
c) Society
d) Sole Propritorship
Answer: c) Society

Question 16. The principle states that the insured must have pecuniary (economic) interest in the subject-matter of the insurance, i.e. life or property insured. Normally, it is established by ownership, possession or direct relationship.
a) Indemnity
b) Doctrine of causa proxima
c) Doctrine of subrogation
d) Insurable interest
Answer: d) Insurable interest

Question 17. HUF can’t comprise members of a
a) Hindu & Shikh Family
b) Jain Family
c) Buddhist Family
d) Muslim Family
Answer: d) Muslim Family

Question 18. It is a type of saving bank account in which excess of a particular limits gets automatical transferred to fixed deposit account.
a) Current deposit account
b) Recurring deposit account
c) Multiple option deposit account
d) Overdraft Account
Answer: c) Multiple option deposit account

Question 19. Mohanlal, Karta of a family business, died in a road accident. His son received compensation from the insurance company. Can this income be treated as HUF income?
a) Yes, because he is a karta of family business.
b) No, because he is a karta of family business.
c) No, because insurance compensation is in place of Mohanlal so it will be handed over to his son only.
d) None of the above
Answer: c) No, because insurance compensation is in place of Mohanlal so it will be handed over to his son only.

Question 20. Find odd one out
a) Digital Cash
b) Mobile Wallets
c) Point of Sales
d) COD
Answer: d) COD

Question 21. Arrange in correct sequence
a. Approval from SEBI
b.Filing of the prospectus
c.Appointment of bankers, brokers, and underwriters
d.Minimum subscription
e.Application to Stock Exchange
f.Allotment of shares
Options
a) a-b-d-c-e-f
b) a-b-c-d-e-f
c) b-a-c-d-e-f
d) b-d-a-c-e-f
Answer: b) a-b-c-d-e-f

Question 22. Under this insurance the amount of Insurance is paid on the maturity of policy or the death of policy holder whichever is earlier. If the policy holder survives till maturity he enjoys the amount of insurance. If he dies before maturity then the insurance claim helps in maintenance of his family. The insurance company insures the life of a person in exchange for a premium which may be paid in one lump sum or periodically say yearly, half yearly quarterly or monthly. This para belongs to:
a) Health insurance
b) Marine insurance
c) Life insurance
d) Fire insurance
Answer: c) Life insurance

Question 23. A company is a democratic institution wherein the Board of Directors is representatives of the shareholders who are the owners. Owners have minimal influence in running the business. Shareholders are spread all over the country and a very small percentage attend the general meetings. The Board of Directors enjoy freedom in exercising their power, and sometimes they go against the interests of the shareholders. Dissatisfied shareholders have no option but to sell their shares and exit the company. This is the example of:
a) Oligarhic management
b) Monoply Management
c) Openness Management
d) Joint Management
Answer: a) Oligarhic management

Question 24. This Principle applies to all contracts except the contract of life insurance because estimation regarding loss of life cannot be made. The objective of contract of insurance is to compensate to the insured for the actual loss he has incurred. These contracts ‘provide security from loss and no profit can be made out of these contracts.
a) Utmost Good Faith
b) Indemnity
c) Insurable Interest
d) Causa Proxima
Answer: b) Indemnity

Question 25. The profit is distributed on the basis of volume of business transacted by a member and not on the basis of capital contribution of members.
a) Company
b) Partnership
c) Society
d) Sole Trade
Answer: c) Society

Question 26. Here, parties involved in the electronic transactions are from within a given business firm, hence the name is ________.
a) Intra-B commerce
b) Intra-C commerce
c)  Intra-D commerce
d) Intra-A commerce
Answer: a) Intra-B commerce

Question 27. MNCs have highly sophisticated research and development departments. These are engaged in developing new products and superior design of existing products.
a) Product Innovations
b) Advanced technology
c) Marketing Strategies
d) Huge Capital Resources
Answer: a) Product Innovations

Question 28. Match the following:
(i) e-business                                      (a) Authorizes payment made online
(ii) B to C                                             (b) Automatic teller machine
(iii) ATM                                              (c) Business to Consumer
(iv) Business Ethics                            (d) Electric business
Options:
a) i-d, ii-c, iii-b, iv-a
b) i-d, ii-b, iii-c, iv-a
c) i-a, ii-d, iii-b, iv-c
d) i-a, ii-c, iii-b, iv-d
Answer: a) i-d, ii-c, iii-b, iv-a

Question 29. Death, insolvency and insanity or change of members as no effect on the life of a company. It can come to an end only through the prescribed legal procedure.
a) Incorporated association
b) Separate Legal Existence
c) Perpetual Existence
d) Separation of ownership and control
Answer: c) Perpetual Existence

Question 30. Find odd one out
a) e-bidding/e-auction
b) e-banking
c) e-trading
d) e-communication/e-promotion
Answer: b) e-banking

Question 31. Registration is not compulsory it is optional. But it is always beneficial to get the firm registered.
a) Sole Proprietorship
b) Partnership
c) Company
d) Company
Answer: b) Partnership

Question 32. As the firms that outsource seek to lower their costs, they try to get the maximum benefit from the low-cost manpower of the host countries.
a) Sweat shopping
b) KPO
c) BPO
d) Labour Management
Answer: a) Sweat shopping

Question 33. The liability of partners is unlimited and they are liable individually as well as jointly. It may prove to be a big drawback for those partners who have greater personal wealth. They will have to repay the entire debt in case the other partners are unable to do so. Idenitfy similar nature form of organisation from the listed below:
a.Sole Trade
b.Karta in HUF
c.Private Company
d.Public Company
Options:
a) (a, c)
b) (a,b,c)
c) (b,c)
d) (a,b)
Answer: d) (a,b)

Question 34. Which one is not the benfit of e-business?
a) Ease of formation and lower investment requirements
b) Face to Face Interaction
c) Convenience
d) Movement towards a paperless society
Answer: b) Face to Face Interaction

Question 35. The ____________ is defined as the totality of man’s surroundings - both natural and man-made. Natural Resources-all land, water, air and man-made - cultural heritage, socio economic institutions and the people.
a) Environment
b) Business Environment
c) Social Environment
d) None of the above
Answer: a) Environment

Question 36. Which one is not the benefit of E-Banking to customer:
a) E-Banking provides 24 hours a day X 365 days a year services to the customers.
b) Customers can’t make transactions from office or house or while traveling.
c) There is greater customer satisfactions through E-banking as it offers unlimited access and great security as they can avoid travelling with cash.
d) None of the above
Answer: b) Customers can’t make transactions from office or house or while traveling.

Question 37. __________ refers to the moral values or standards or norms which govern the activities of a businessman.
a) Business Ethics
b) Moral Values
c) Code of Conduct
d) Business Rules
Answer: a) Business Ethics

Question 38. Smart cards are widely used to encrypt digital television streams. State
a) True
b) False
c) Can’t Say
d) None
Answer: a) True

Question 39. __________ is a contract under which one party (Insurer or Insurance Company) agrees in return of a consideration (Insurance premium) to pay an agreed sum of money to another party (Insured) to make good for a loss, damage or injury to something of value in which the insured has financial interest as a result of some uncertain event.
a) Insurance
b) Assurance
c) Reinsurance
d) Double Insurance
Answer: a) Insurance

Question 40. It is caused by the running factories and vehicles. It can be responsible for many diseases like loss of hearing, violent behaviour and mental disorder.
a) Water Pollution
b) Noise Pollution
c) Land Pollution
d) Air Pollution
Answer: b) Noise Pollution

Question 41. Find which one is not the Arguments in favour of Social Responsibility
a) Justification for Existence and Growth
b) Avoidance of government regulations
c) Contribution to social problems
d) Profit Motive
Answer: d) Profit Motive

Question 42.Partnership is a voluntary association of two or more persons who agree to carry on some business jointly and share its profits and losses. Select one more form of orhanisation in which atleast two persons are required to form it.
a) Public Company
b) Private Company
c) OPC
d) Society
Answer: b) Private Company

Question 43. A business is a part of society. So, a business enterprise should do business and earn money in ways that fulfill the aspirations of the society. The above statement belongs to __________.
a) Mental Relax for Businessmen
b) Social Responsibility
c) Survival of business
d) Success of Business
Answer: b) Social Responsibility

Question 44. RTGS refers to a funds transfer system where transfer of funds takes place from one bank to another on a Real-time and on Gross basis. Here what Real Time means?
a) Real time means transactions are settled as soon as they are processed and are not subject to any waiting period.
b) Real time means transactions are settled as soon as they are processed and are subject to any waiting period.
c) Real time means transactions are settled face to face.
d) Real time means transactions are not settled face to face.
Answer: a) Real time means transactions are settled as soon as they are processed and are not subject to any waiting period.

Question 45. bank issues a ________to those of its customers who enjoy good reputation. This is a sort of overdraft facility. With the help of this card ,the holder can buy goods or obtain services up to a certain amount even without having sufficient deposit in their bank accounts.
a) Debit Card
b) Credit card
c) Overdraft Card
d) a) ATM Card
Answer: b) Credit card

Question 46. Find odd one out
a) There is shortage of capital as it is limited to the ancestral property.
b) Karta manages the business and sometimes he ignores the valuable advice of other members.
c) Death, insolvency, lunacy or illness of a proprietor affects the business and can lead to its closure.
d) As karta is overburdened with work, he may take hasty and unbalanced decisions.
Answer: c) Death, insolvency, lunacy or illness of a proprietor affects the business and can lead to its closure.

Question 47. It is almost like a bank draft. It refers to that bank draft which is payable within the town.
a) Banker's cheque
b) Pay Order
c) Both (a) & (b)
d) Bank Draft
Answer: c) Both (a) & (b)

Question 48. It is SUITABLE IN AREAS OF PERSONALISED SERVICE like beauty parlour, hair cutting saloons & small scale activities like retail shops.
a) Partnership Firm
b) Society
c) Sole Trader
d) Company
Answer: c) Sole Trader

Read the following text and answer question number 49 & 50  on the basis of the same.

Vijay Kaushik, Vikram Singhal and Narender Jangra jointly established a business organisation 'Delicious  Food Products'. They dealt in Wheat Business. Their business was to buy good quality Wheat from different Farmers and to sell it under their own brand. The name of their brand was 'VVN Wheat'. Their Wheat was available in the packings of Half kg, One kg, Two kg and Five kg. Their slogan was 'Ek Baar Khaoge, Baar Baar Lejaoge'. They were doing their business very honestly and sincerely. This was the very reason that there was little political interference in their business. They themselves looked after their business activities. There was another rival firm in the market, named 'Govt. Depot'. It had been set up by the Government. Having been set up by the government, this firm focused its attention a lot on social responsibilities. On the other hand, 'Delicious Food Products' aimed at serving society by earning a reasonable profit. Day by day its business was growing more and more. It enjoyed a special recognition in its area. Although 'Govt. Depot' focused its attention on social responsibility, it's quality and supply system both were inferior.

Question 49.To which business/sector does the business established by the three friends belong?
a) Private Sector
b) Public Sector
c) MNC
d) Joint Venture
Answer: a) Private Sector

Question 50.They were doing their business very honestly and sincerely. This was the very reason that there was little political interference in their business. They themselves looked after their business activities. There was another rival firm in the market, named 'Govt. Depot'. It had been set up by the Government. Having been set up by the government, this firm focused its attention a lot on social responsibilities. On the other hand, 'Delicious Food Products' aimed at serving society by earning a reasonable profit. From these lines which feature of their business here highlighted?
a) Low Political Interfere
b) Personal Management
c) Both (a) & (b)
d) Only (b)
Answer: c) Both (a) & (b)

Read the following text and answer question number 51, 52 & 53  on the basis of the same.

Since the quality of environment is important for all of us, we have a collective responsibility to protect it from being spoiled. Whether it is government, business enterprises, consumers, workers, or other members of society, each one can do something to stop polluting the environment. Government can enact laws to ban hazardous products. Consumers, workers and the members of society can avoid using certain products and doing things that are not environment friendly.

The business enterprises should, however, take the lead in providing their own solutions to environmental problems. It is the social responsibility of every business to take steps not only to check all sorts of pollution but also to protect environmental resources. Business enterprises are leading creators of wealth, employment, trade and technology. They also command huge financial, physical and human resources. In most cases, a modification or change in the process of production, redesign of equipment, substituting poor quality materials with better ones or other innovative approaches could greatly reduce or even eliminate pollution entirely.

Question 51.Identify the part of environment pollution
a) Air pollution
b) Water pollution
c) Noise pollution
d) All of the above
Answer: d) All of the above

Question 52.Identify the causes of environment pollution from the above para:
a) Hazardous products
b) Ban on certain products which are not good for environment
c) Passing laws to protect environment
None of the above
Answer: a) Hazardous products

Question 53.To protect the environment lies under
a) Consumer Responsibility
b) Government Responsibility
c) Businessmen Responsibility
d) All of the above
Answer: d) All of the above

Directions for the question 54 to 60:

In each of the following questions given below, there are two statements marked as Assertion (A) and Reason (R). Marks your answer as per the codes provided with questions.
Question 54. Assertion (A): To pay a fair return on their investment is a social reponsibility of business.
Reason (R) : A business is a socio- economic institution.
a) Both A and R correct
b) Both A and R Incorrect
c) Both A and R correct but R is not a correct explanation of A
d) Both A and R correct and R is a correct explanation of A
Answer: d) Both A and R correct and R is a correct explanation of A

Question 55. Assertion (A): e-commerce covers a firms interaction with its customers and suppliers over the
Reason (R) : The scope of e-business is quite vast. Almost all types of business functions such as production, finance, marketing and personal administrations carried out ove computer network.
a) Both A and R correct
b) Both A and R Incorrect
c) Both A and R correct and R is a correct explanation of A
d) Both A and R correct but R is not a correct explanation of A
Answer: c) Both A and R correct and R is a correct explanation of A

Question 56. Assertion (A): The customer can make digital payments for online transactions through credit card or debit card.
Reason (R) : PoS is usually a hand held device that reads banking cards.
a) Both A and R correct
b) Both A and R Incorrect
c) Only A is correct
d) Only R is Correct
Answer: a) Both A and R correct

Question 57. Assertion (A): A government company means any company in which not less than 51% of the paid up capital is held by the central government, or by any state government or partly by CG and Partly by one or more state govt.
Reason (R) : The government is the major shareholder and exercises control over the management of these companies, they are known as government companies.
a) Both A and R correct
b) Both A and R Incorrect
c) Both A and R correct and R is a correct explanation of A
d) Both A and R correct but R is not a correct explanation of A
Answer: c) Both A and R correct and R is a correct explanation of A

Question 58. Assertion (A): The limit of ‘Minimum Subscription” is 90% of the size of the issue of shares.
Reason (R) : The companie sAct 2013 defines the limit of Minimum Subscription.
a) Both A and R correct
b) Both A and R Incorrect
c) Both A and R correct and R is a correct explanation of A
d) Both A and R correct but R is not a correct explanation of A
Answer: d) Both A and R correct but R is not a correct explanation of A

Question 59. Assertion (A): Promoters have to decide about the members who will be signing the MoA of the proposed company.
Reason (R) : Usually the people signing MoA are also the first directors of the company.
a) Both A and R correct
b) Both A and R Incorrect
c) Only A is correct
d) Only R is Correct
Answer: a) Both A and R correct

Question 60. Assertion (A): The transactional risk is low due to arm’s length transactions and face to face contact in traditional business.
Reason (R) : e-business is carried over internet.
a) Both A and R correct
b) Both A and R Incorrect
c) Both A and R correct but R is not a correct explanation of A
d) Both A and R correct but R is a correct explanation of A
Answer: c) Both A and R correct but R is not a correct explanation of A