KENDRIYA VIDYALAYA NO.

2 MRN , MATHURA
Half – Yearly Exam (2024 – 25)
Class: XI Commerce Subject: Business Studies M.M.: 80 Time: 3
Hrs.

सामान्य निर्देश /General Instructions:

1. इस प्रश्न पत्र में 34 प्रश्न हैं। सभी प्रश्न अनिवार्य हैं। This question paper
contains 34 questions. All questions are compulsory.
2. प्रश्न 1 से 20 प्रत्येक प्रश्न 1 अंक का है। Question 1 to 20 carries 1 mark each.
3. प्रश्न 21 से 26 प्रत्येक प्रश्न 3 अंक का है। Questions 21 to 26 carries 3 marks
each.
4. प्रश्न 27 से 29 प्रत्येक प्रश्न 4 अंक का है। Questions 27 to 29 carries 4 marks
each.
5. प्रश्न 30 से 34 प्रत्येक प्रश्न 6 अंक का है। Questions from 30 to 34 carries 6 marks
each.
6. कोई समग्र विकल्प नहीं है। हालाँकि, आंतरिक विकल्प प्रदान किये गए है। There is no
overall choice. However, internal choices have been provided.

Q. Marks
NO.
1. Name the two broad categories of business activities. 1
(a) Trade and commerce (b) trade and industry
(c) industry and commerce (d) none of these
2. An organization is working for the purpose of public welfare as a ministry of 1
government. It is financed by govt. and all its income is deposited in govt.
treasury. Identify which kind of public sector enterprise is it.
(a)Partnership (b) Departmental undertaking
(c) Sole proprietorship (d) Company Answer.
3. Mr. Diwakar a businessman is involved in daily dealings of cash through the 1
account of his business in Axis Bank due to the unavailability of funds and the
urgent need to pay his creditors he approaches the bank to withdraw more than
the balance available in his account using the facility provided to him by the bank.
His wife also held an account in the same bank and wanted to transfer the
Rs.500000 to her parents but she did not have an e-banking facility in her saving
account. But Bank helped her to transfer the money.
Name the facility provided by the bank to Diwakar when there were no funds in
his account to pay his creditors.
(a) Overdraft facility (b) Transfer facility
(c) Fixed deposits facility (d) All of the above.
OR
Ankur saves Rs.3,000 every month. Which type of Bank Account he should open
with the bank?
(a) Current Account (b) PPF Account
(c) Recurring Deposit Account (d) Saving Account
4. An enterprise having huge capital, huge turnover and its branches are spread all 1
over the country. What do we call such kinds of enterprises?
(a) Joint venture (b) Global enterprise
(c) Large corporation (d) Huge company
OR
Govt. has given autonomy to a PSU to improve its performance but held it
accountable for specified results under an agreement. What is this agreement
called?
(a) MoA (b) AoA
(c) MoU (d) GoU
5. Assertion (A): Business represents the exchange of Goods and Services. 1
Reason (R): Risk and Uncertainties are always there in any form of business
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correc
6. Mail sent by the Marketing department to the Purchase department is an example 1
of:
(a) B2B (b) B2C
(c) C2C (d) Intra-B
OR
Pick the odd one out:
(a) Supply order to a business enterprise.
(b) Reporting by subordinates to superiors.
(c) Communication regarding organizational policies.
(d) Interaction between two departments of a business.
7. Post and Telegraph department is part of a government ministry. It is fully 1
managed, controlled and financed by the concerned Ministry. The annual budget
of the ministry makes provision for the funds needed by the government. The
ministry is answerable to the Parliament for its functioning.
What is the legal status of such organizations?
(a) No separate legal entity (b) Separate legal entity
(c)Both a and b (d)None of the above
8. Maninder, Surinder and Balbinder and Harinder pursued their Master's Degrees 1
in
Business Management from a reputed institute in Delhi. After completion of their
studies, all of them got engaged in different fields. Maninder got a job at an Oil
Refinery Industry as a Junior Executive in Finance. Surinder joined his family
business in Textile Industry in Jalandhar, Punjab. Balbinder opened his own
Dairy Firm and Harinder join the construction business.
Identify the type of industry Mr. Surinder worked with as highlighted in the above
case.
(a) Analytical Industry (b) Synthetic Industry
(c) Processing Industry (d) Assembly Industry
OR
Neha is a practicing Chartered Accountant. She has her C.A. Firm in Hyderabad,
Telangana. She deals in providing Income Tax and GST-related services to her
clients against very reasonable consultancy fees. She has her own professional
coaching classes for C.A. Enrolled Students.
Identify the types of economic activities performed by Neha as referred to in the
above case.
(a) Business (b) Profession
(c) Employment (d) None of the above
9. Liability of partners in a partnership business is generally of unlimited nature. But 1
Neha joined a partnership firm in the year 2018 as a partner. As per the
provisions of the firm she joined, the liability of the partners is limited and its firm
name consists of a specific word LLP in it.
Which of the following types of partnership is referred to in the above case?
(a) Partnership at will (b) Particular Partnership
(c) General Partnership (d) Limited Liability Partnership .
10. Match the following: 1
1.C2C a. After-sale service
2.B2C b. Collaborations
3.B2B c. Selling antique items
(a) 1-c, 2-a, 3-b (b) 1-a, 2-b, 3-c
(c)1-b, 2-c, 3-a (d)1-c, 2-b, 3-a
11. Statement-1: The business can ensure environmental protection by adopting 1
deforestation.
Statement-2: Sewage disposal is a technique that could be adopted by
businesses for environmental protection.
(a) Both statements are correct
(b) Both statements are incorrect
(c) First statement is true, second is false
(d) First statement is false, second is true
12. ___________defines the relationship of the company with the outsiders. 1
(a) Articles of Association (b) Memorandum of Association
(c) Both (a) & (b) (d) None of the above
13. UPI stands for- 1
(a) Unique Payment Introduction (b) Union Payment Interface
(c) Upper Payment Interface (d) Unified Payment Interface
14. Assertion (A): According to the principle of subrogation the insured should not be 1
allowed to make any profit by selling damaged property or in the case of lost
property being recovered.
Reason(R): The principle of subrogation is a corollary to the Principle of
Indemnity and the damaged goods will belong to the insurance company, once
the compensation is paid. It also states that insurance is not a contract of making
a profit.
(a) Both Assertion and Reason are correct and the Reason is a correct
explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not a correct
explanation of the Assertion.
(c) The Assertion is correct but Reason is incorrect.
(d) Both the Assertion and Reason are incorrect.
15. Sanjay is an active partner in a partnership firm, where the liability of partners is 1
unlimited. Partners are allowed to participate in the management of the firm
business. All the partners are abiding by the rules framed in the partnership.
Registration of a partnership firm is optional and the firm business may come to
an end in the event of death, insolvency, and lunacy of any partner.
Which type of partnership is referred to in the above case?
(a) General Partnership (b) Partnership at will
(c) Limited Liability Partnership (d) Particular Partnership
OR
After completing high studies in Hotel Management courses from one of the
highly reputed Hotel Management Institutes of India, Mahesh decided to start his
own Bakery in his hometown. His father arranged funds and supported him to
commence his business. He recruited some staff and purchased the required
equipment and machines. Within a few months, he started manufacturing bakery
products in the market and sold them at reasonable prices. His quality products
and reasonable prices helped him in making a good profit.
Identify the form of business organization highlighted in the above case.
(a) Company (b) Joint Hindu Family Business
(c) Sole Trading concern (d) Partnership
16. Which of the following statement is not correct? 1
(a) A company can refer to Table A if it does not prepare its articles of
association. (b) A private limited company can have a maximum of 200 members.
(c) A minor as a partner can inspect the books of the firm.
(d) One-person company is a company, which has one person as its member.
17. Match the following: 1
1. Helping people affected by calamity a. Economic
2. Producing for earning profit b. Discretionary
3. Respecting religious sentiments c. Ethical
(a) 1-c, 2-b, 3-a (b) 1-a, 2-c, 3-b
(c) 1-b, 2-c, 3-a (d) 1-b, 2-a, 3-c
OR
Match the following:
1. Release of carbon monoxide a. Air pollution
2. Sewage disposal in rivers b. Noise pollution
3. Use of loud machines c. Water pollution
(a) 1-c, 2-b, 3-a (b) 1-a, 2-c, 3-b
(c) 1-b, 2-c, 3-a (d) 1-b, 2-a, 3-c
18. ____________ is commonly used by business organisations as a source of 1
short-term financing.
(a) Lease financing (b) ADRs (c) Trade Credit (d) None of these
19. Excessive ploughing back may cause dissatisfaction amongst the ________ as 1
they would get lower dividends.
(a) Debenture holders (b) Shareholders
(c) Lenders (d) Suppliers
OR
What is a source of internal financing or self-financing?
(a) Trade Credit (b) Factoring
(c) Retained Earnings (d) Lease Financing
20. Assertion (A): Sole Trading Concern is treated as a “One Man Show”. 1
Reason (R) It is owned, controlled, managed, and operated by the owner all
alone. (a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct
21. Shyama Ltd. is planning to expand their business & need money. The finance 3
manager reported that the company is not in a position to bear extra burden of
paying interest & equity shareholders insisted not to issue more shares as there
is risk of losing control on issue of new shares in the market.
a) Suggest a source of the owner's fund suitable in the above case.
b) State any two advantages of this source.
22. Enumerate any three responsibilities of business towards employees. 3

23. Mr. Abhishek gets his house insured against fire of Rs. 20 Lakh with insurer J 3
and for Rs. 10 Lakh with insurer K. A loss of Rs. 3 Lakh occurred.
How much compensation can be claimed from A and B separately and why?
OR
Identify the Principles of Insurance:
(a) The insured is expected to disclose all the important facts related to the
property insured.
(b) Insured must have some economic interest in the subject matter of the
Insurance contract.
(c) To claim for insurance the insured must take reasonable steps to minimize the
loss.
24. The government planned to begin a road project. The government needed 3
management specialists and financial help to complete it. The government
contacted the private sector to fulfil this requirement. Now, this project will be
completed jointly by both the public sector and private sector.
What kind of partnership is it? Explain its features.

25. “Earning of profit cannot be the sole objective of business any more than the 4
eating is the objective of living.” Do you agree with this statement? Give reasons
in support of your answer.

26. Differentiate between e-business & traditional business on the following basis: 4
i. Personal touch, ii. Risk involved,
iii. Setting up cost, and iv. Human resource required
27. What do you mean by the principles derived from social values which guide and 4
govern the conduct of businessmen? Explain its elements.

28. India is the largest milk producer in the world. Moreover, increasing demand for 4
milk and milk product has made dairy farming a profitable business. Considering
these facts Raghu, an industrialist has decided to set up a dairy farm and a
cheese
producing unit in Haryana. He plans to deal in an extensive range of Fresh
Mozzarella, Processed Cheeses, Pizza Cheese, Cheese Singles, Naturally
Flavoured Cheeses (with Black pepper, Garlic, Cumin, Herbs & Spice),
Mascarpone, Mozzarella & Grated Cheese for Pizza in various combinations.
In the context of the above case:
i. Identify the different kinds of industries Raghu wants to set up.
ii. State and explain the categories of types of industries to which the different
kinds of industries as identified in part (i) belong to.
OR
Monika is running a grocery shop in the nearby local market whereas his friend
Priyanshu works as a finance manager in a reputed IT company. In the context of
the above case:
i. Identify the different types of economic activities both the friends are engaged
in.
ii. Distinguish between the two different types of economic activities as identified
in part (i) of the question (any two points).
29. X, Y, Z have mutually decided to set up small factory in rural area. They decided 4
to hide the association of X with the factory to outsiders, and Y will not take part
in day-to-day activities of business due to his health issues. However, Z will take
active part in all activities. Whenever they have problems in getting credit or
financial help, they use the name of their friend 'P' with his consent.
Briefly explain the various types of partners, mentioned in the above paragraph.
30. Differentiate between ‘Equity Shares’ and ‘Preference Shares’. 4
OR
Differentiate between ‘Owners Funds’ and ‘Borrowed Funds’.
31. Ramesh established ‘Niger’ in 2021 in USA. The powers, rules and regulations of 6
“Niger’ was decided as per USA norms. Niger established its trade projects in
different parts of the world to increase its market territory which leads to greater
revenue and higher efficiency.
(a) How will ‘Niger’ be categorised as a private sector enterprise?
(b) State any five features of this private sector enterprise.
OR
BHEL was founded in the year 1964 by the Government of India. It is the largest
power plant equipment manufacturer in the country with 74% market share in the
Power Sector. It has network of 17 manufacturing units, 2 repair units, 4 regional
offices, 8 service centres and infrastructure allowing it to execute more than 150
projects at sites across India and abroad. It has been granted the prestigious
Maharatna status in2013 by the Government of India. Maharatna Status allows
the Board of this company enhanced financial and operational autonomy.
In content of the above case:
(a) How will BHEL be classified as a form of Public Sector Enterprise?
(b) State any four features of the form of Public Sector Enterprises as identified in
part (a).
(c) State briefly ‘Operational autonomy’ as a merit of the type of Public Sector
Enterprises as identified in part (a).

32. Explain the following principles of insurance with example: 6

(a) Principle of cause proxima
(b) Principle of contribution
(c) Principle of subrogation
33. “Surya Ltd” is a company manufacturing Electric devices. The company’s 6
financial manager Mr. Sherlock, in order to fulfil the long-term financial need, is
on the lookout for such a financial source, on which tax advantage may be
available. Advise him about the financial source which should fulfil his need. Also
explain its three merits & two demerits.
OR
Jasoda bought three hundred 10% preference shares of XYZ Ltd. in the year
2023. The face value of each share is Rs. 100. She didn't receive any dividend
on them during 2023 due to insufficient profits of the company. In the year 2024
the company made surplus profits.
Calculate the amount of dividend payable to her in the year 2024 assuming that
she is holding:
a. Cumulative Preference Shares
b. Non-Cumulative Preference Shares
34. “It is said to be an artificial person created by law, having a separate entity with 6
perpetual succession & common seal.”
What is it? Explain its features.