CBSE Class 11 Business Studies Sample Paper Term 1 Set B

Mcq Questions For Ncert Class 11 Business Studies Practice Paper

Question. Anubhav took a fire insurance policy for his property worth ₹ 10,00,000 with two insurers: Shri Ram General Insurance Co. Ltd. for ₹ 8,00,000 and Bajaj Allianz General Insurance Co. Ltd. for ₹ 4,00,000. An electric short circuit in his property caused fire and it resulted in a loss of ₹ 3,00,000. He filed a claim for ₹ 3,00,000 against each of the two insurance companies. Which principle of insurance is highlighted in the above case?
(a) Subrogation
(b) Indemnity
(c) Contribution
(d) Mitigation

Answer : C

Question. Development of business education has made people aware of the importance of social responsibility for the business.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. Mr. Naresh Batra, a businessman, incurred some financial loss due to the dishonesty of his workers. This loss is caused due to ……… .
(a) natural cause
(b) financial cause
(c) human cause
(d) economic cause

Answer : C

Question. Which of the following is not related to One Person Company?
(a) No person shall be eligible to incorporate more than a One Person Company or become nominee inmore than one such company.
(b) No minor shall become member or nominee of the One Person Company or can hold share with beneficial interest.
(c) Such company cannot be incorporated or converted into a company under Section 8 of the Act.
(d) Such company can carry out Non-Banking Financial Investment activities including investment in securities of anybody corporates.

Answer : D

Question. The transactions taking place between consumers and business are known as ……… .
(a) B2B
(b) B2C
(c) C2C
(d) None of these

Answer : B

Question. By providing quality product at reasonable price, business is fulfilling its responsibility towards ……… .
(a) society
(b) government
(c) consumers
(d) employees

Answer : C

Question. Family floater health insurance policy covers the hospitalisation expenses of an individual upto a specified limit.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. Name and discuss the benefits of banking service in which the customer can conduct banking activities like managing savings, checking accounts, applying for loans, etc. over the internet.
(a) Mobile banking
(b) Physical banking
(c) e-banking
(d) None of these

Answer : C

Question. …… organisation is formed by passing a Special Act of Parliament of state legislature.
(a) Statutory corporation
(b) Government company
(c) Departmental undertaking
(d) None of the above

Answer : A

Question. Mr. Harish Kalra is a farmer and cultivates sugarcane on a large piece of land in a district in Maharashtra. Mr. Harish has sold his ancestral house for ₹ 40 lakhs. His son, Saksham proposes him to establish a sugar mill with this money as the raw material sugarcane will be available from their fields. Mention the type of industry in which Harish is engaged in.
(a) Primary
(b) Secondary
(c) Tertiary
(d) Service

Answer : A

Question. The control of central government on departmental undertakings is very effective. This control on departmental undertakings is subject to
(a) Government control
(b) IAS officers control
(c) Parliamentary control
(d) Control by CAG

Answer : C

Question. Ram, Mohan and Sohan are good friends. Ram is working as a doctor in a private hospital and getting salary of ₹ 1,50,000 per month. Mohan is a farmer and producing 50 quintals wheat for his own consumption. Sohan is working as a teacher in a school and getting salary of ₹ 40,000 per month. In addition to that, Sohan teaches some slum area children in the
evening and does not charge anything from them. It gives him a psychological and mental satisfaction. Which type of human activity is performed by Ram?
(a) Economic activity
(b) Non-economic activity
(c) Both (a) and (b)
(d) None of the above

Answer : A

Question. Chennai Pharmaceuticals Co. Ltd., registered under the Companies Act, 2013, was started with a paid up capital of ₹ 50,00,000. 40% of this paid up capital is in the hands of private individuals and the balance is held by the government of Chennai. Chennai pharmaceuticals belongs to which form of public sector enterprises?
(a) Statutory corporation
(b) Government company
(c) Departmental undertaking
(d) None of the above

Answer : B

Question. Craft Enterprises pays wages to its employees at a rate which is much lower than the minimum wages prescribed by the government. The working conditions in the factory are inappropriate as there is lack of proper ventilation and there is a strict rule against formation of Trade Union. Against which ‘group’, Craft Enterprises has ignored the social responsibility?
(a) Community
(b) Consumers
(c) Government
(d) Workers

Answer : D

Question. A departmentally run enterprise enjoys corporate status.
(a) True
(b) False
(c) Can’t say
(d) Partially false

Answer : B

Question. Shivangi wants to buy a new laptop with latest features and want to sell the old laptop before buying the new one. So, she listed her old laptop on Quikr.com. She received good response from her post and was able to sell the laptop at good price. Identify the component of e-business being described above.
(a) C2C
(b) B2B
(c) Intra-B
(d) B2G

Answer : A

Question. Match the ‘various e-banking services’ in column I with their respective statement in column II.

Codes
      A    B    C   D 
(a) (i)  (iii) (ii) (iv)
(b) (i)  (ii) (iii) (iv)
(c) (ii) (iii) (i)  (iv)
(d) (ii) (i)  (iii) (iv)

Answer : C

Question. It is the moral obligation of business to get involved in solving social problems, instead of expecting other social agencies dealing with them. It is related to which justification of social responsibility?
(a) Better environment for doing business
(b) Holding business responsible for social problems
(c) Maintenance of society
(d) Converting problems into opportunities

Answer : B

Question. The management of Mars Ltd. manipulated its financial statements to show lesser earnings so that low rate of dividend can be given. Identify the group whose interest is being ignored?
(a) Society
(b) Employees
(c) Shareholders
(d) Consumers

Answer : C

Question. Intra-B transactions involves a firm’s interactions with its employees.
(a) True
(b) False
(c) Can’t say
(d) Partially false

Answer : A

Assertion-Reasoning MCQs :

Question. Assertion (A) Auxiliaries to trade are generally referred as services.
Reason (R) Auxiliaries to trade facilitate activities relating to industry and trade.
(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

Answer : A

Question. Assertion (A) e-business has considerably increased dependence on paperwork.
Reason (R) In case of e-business, most of the work is done electronically through computers.
(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

Answer : D

Question. Assertion (A) In case of fire insurance, insurable interest must be present at the time of taking the policy as well as at the time of loss of subject matter.
Reason (R) Fire must be the proximate cause of damage or loss in a fire insurance policy.
(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

Answer : D

Question. Assertion (A) The karta cannot be an expert in all areas of management.
Reason (A) The inability of karta to decide effectively may result into losses for the organisation.
(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

Answer : A

Question. Assertion (A) Businessman often pass the burden of social responsibility to consumers.
Reason (R) Businessman charging lower prices to customers.
(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

Answer : C

Case Based MCQs :

Mr. Liyaquat Ali Khan runs a departmental store in Bhopal. He procures different kinds of products from all over India through railways, roadways and airways. He also owns a godown to hold the stocks. He has also taken an insurance policy worth ₹ 15 crores for his business. Moreover, he has taken a loan of ₹ 3,00,000 from Axis Bank in order to meet short-term financial needs of his business. He has placed information about his store on the hoardings, bill boards, etc. in order to popularise them.

Question. Mr. Liyaquat is doing which type of human activity?
(a) Economic
(b) Non-economic
(c) Both (a) and (b)
(d) None of these

Answer : A

Question. “He procures different kinds of products from all over India through railways, roadways and airways.” Which feature of business is highlighted in the given lines?
(a) Element of risk
(b) Uncertainty
(c) Procurement of goods and services
(d) Sale of goods and services

Answer : C

Question. “He has placed information about his store on the hoardings, bill boards, etc. in order to popularise them.” Which auxiliary to trade is used here?
(a) Transportation
(b) Advertising
(c) Banking
(d) Insurance

Answer : B

Question. Which type of economic activity is done by Mr. Liyaquat?
(a) Business
(b) Profession
(c) Employment
(d) None of these

Answer : A

Question. “He also owns a godown to hold the stocks.” Which auxiliary to trade is used here?
(a) Transportation
(b) Warehousing
(c) Banking
(d) Insurance

Answer : B

Subhadra, Isha, Samriti and Kamlesh, all the four of them are members of the same Kitty Party. The speciality of their Kitty Party is that besides several entertain-ment programmes, they also provide an opportunity to some of the members to speak on some special subject. Once, all the four of them got the opportunity of speaking on the subject: ‘Digital Payment System’. They shared their respective experiences as given below: First of all Subhadra spoke on her payment system. She told that as and when she buys goods from a mall, she scans the pattern pasted on the ‘Payment Counter’ using her mobile and makes the payment easily. After this, Isha told about her own payment system. She said that as and when she has to make some payment, she uses the LOGIN Id, LOGIN PASSWORD and TRANSACTION PASSWORD obtained from her Bank. In this way, very easily and with full safety she makes the payment. Samriti told that she made her payment quite fast by using her VIRTUAL Id. Similarly, Kamlesh told that she had a mobile with BASIC FEATURES and she required no internet to make her payments. In order to make the payment, she needed the registered Mobile number and MMID of the receiver. She has to use the MPIN issued by her bank.

Question. Identify Subhadra’s digital payment system.
(a) Internet banking
(b) Quick response code
(c) Unified payment interface
(d) Unstructured supplementary service data

Answer : B

Question. Kamlesh uses a mobile with BASIC FEATURES. Identify her payment medium.
(a) Internet banking
(b) Quick response code
(c) Unified payment interface
(d) Unstructured supplementary service data

Answer : D

Question. They all are using which facility of banking?
(a) Bank draft
(b) Cheque
(c) e-banking
(d) RTGS

Answer : C

Question. Isha uses LOGIN Id, LOGIN PASSWORD and TRANSACTION PASSWORD to make her payments. Identify her payment system.
(a) Internet banking
(b) Quick response code
(c) Unified payment interface
(d) Unstructured supplementary service data

Answer : A

Question. Samriti makes payments by using her VIRTUAL Id. Identify her payment system.
(a) Internet banking
(b) Quick response code
(c) Unified payment interface
(d) Unstructured supplementary service data

Answer : C

A group of seven friends decided to jointly set up a public company in a rural area where the people were facing a serious unemployment problem. All of them jointly selected a place where the company’s registered office would be situated. Along with it, with the advice of business specialists, it was also decided what procedure would be followed for the issue and allotment of shares. All the friends wanted their company to have a singular recognition, and people should get immediate attraction towards its products. It was felt that the very name of the company could become a reason for its recognition. After a detailed discussion, the company’s name was decided as Trimurti Ltd. Then, they jointly completed all the formalities of the formation of the company.

Question. “It was also decided what procedure would be followed for the issue and allotment of shares”. Which document is being highlighted in the lines?
(a) MoA
(b) AoA
(c) Prospectus
(d) None of these

Answer : B

Question. Which type of company highlighted in the lines?
(a) Public company
(b) Private company
(c) One person company
(d) None of these

Answer : A

Question. “All of them jointly selected a place where the company’s registered office would be situated.” Which clause of MoA is being discussed in the given lines?
(a) Name
(b) Capital
(c) Situation
(d) Association

Answer : C

Question. Which form of business is highlighted in the above case?
(a) Partnership
(b) Company
(c) Sole proprietorship
(d) HUF

Answer : B

Question. “After a detailed discussion, the company’s name was decided as Trimurti Ltd.” Which clause of MoA is being discussed in the given lines?
(a) Name
(b) Capital
(c) Situation
(d) Association

Answer : A