Plus One Business Studies Previous Year Question Papers and Answers ( Question Paper 3 )

                                 Question Paper 2017

Question 1.
Which one of the following is NOT related to the general objectives of the business?
a. Innovation
b. Physical and financial resources
c. Warehousing
d. Productivity

Question 2.
The business operations in a Joint Hindu Family business is controlled by ……………….
a. partners
b. karta
c. co – parceners
d. shareholders

 

Question 3.
The government decided to sell the shares in the telecom department to the private sector. This is an example of ………………
a. disinvestment.
b. memorandum of undertaking
d. rehabilitation
c. reconstruction
Question 4.
……………….. are licensed by the government to accept imported goods prior to payment of tax and customs duty.
a. Cooperative warehouse
b. Private warehouse
c. Bonded warehoused
d. Government warehouse

Question 5.
Transportation removes the hindrance of ……………….. in trading activities.
a. place
b. time
c. risk
d. finance

Question 6.
Mrs. Usha purchased a smartphone from LG company through the internet is a ……………….. activity.

a. B2B
b. B2G
c. B2C
d. C2C

 Question 7.
One of the following is against business ethics. Find it.
a. Charging a fair price for the product
b. Giving wages to employees if by not considering their workload
c. Using correct measurement for products
d. Giving chances to hear the problems of employees

uestion 8.
If a Public Limited Company is NOT preparing the Article of Association, it can adopt ………………….

a. Table A
b. Table B
c. Table C
d. Table DQuestion 9.
………………….. document shows the relationship of the company with outsiders.
a. Articles of Association
b. Memorandum of Association
c. Prospectus
d. Certificate of Incorporation

a.ആർട്ടിക്കിൾസ് ഓഫ് അസോസിയേഷൻ
 

 Question 10.
………………. is the link between wholesaler and customer.
a. Manufacturer
b. Supplier
c. Retailer
d. None of these

 

 

Question 11.
A receipt issued by the commanding officer of a ship when the cargo is loaded on the ship is known as ………………
a. shipping receipt
b. mates receipt
c. cargo receipt
d. charter receipt

Question 12.
Manufacturing and selling goods beyond the boundaries of one’s own country are called ………………
a. national business
b. international business
c. domestic business
d. none of these

Question 13.
Identify the form of business organization related to the following statements.
a. An artificial person created by law.
b. Association of persons with the motive of the welfare of members.

Question 14.
Write a short note on partnership deed.

Question 15.
What do you mean by Export Promotion Zones (EPZ)?

Question 16.
Correct the table given below, if there is a mistake.

Question 17.
Explain how the business units make land pollution.

Question 18.
“People work for others and get remuneration”.
a. Identify the economic activity involved in the above statement.
b. Write any two features of that economic activity.

Question 19.
AM Associates in India and C-Link Associates in Japan, two computer assembling firms, joined together and formed AMC Associates to do the same business.
a. Name the mode of international business mentioned above.
b. State any two advantages of such business.

Question 20.
Explain the causes of business risks.

Question 21.
Give a brief note about the social responsibility of business.

Question 22.
Write any three limitations of mail order business.

Question 23.
a ………………. are also known as rural industries or traditional industries.
b. Write any three features of these industries.

Question 24.
Explain any four characteristics of a Government company.

Question 25.
‘Match the column A with column B.

A	B
(a) Payment at the time of delivery	(i) Non-core activities
(b) Plastic money	(ii) Cash on delivery
(c) Exists in the cyberspace	(iii) Credit/Debit card
(d) Outsourcing	(iv) Digital cash

Question 26.
Ram and Rahim decided to start a mobile shop at Aluva.
a. Which form of business organization is suitable to them?
b. Explain different types of such organization.


Question 27.
The two main documents required for the formation of a company are Memorandum’of Association and Articles of Association. What are the differences between them?

Question 28.
Explain the features of departmental stores.

Question 29.
This service helps to reduce the impact of loss likely to be caused by uncertain events in a busi¬ness.
a. Identify the name of the service.
b. Explain the principles related to such services.

OR

a. Explain the different types of banks.
b. Explain the functions of commercial banks.

Question 30.
Explain the factors affecting the choice of business finance.

OR

What is meant by public deposits? Explain its merits and limitations as a source of finance.

Answers

Answer 1.
c. Warehousing

Answer 2.
b. karta

Answer 3.
a. Disinvestment

Answer 4.
c. Bonded warehouse

Answer 5.
a. place

Answer 6.
c. B2C

Answer 7.
b. Giving wages to employees by not considering their workload

Answer 8.
a. Table A

Answer 9.
b. Memorandum of Association

Answer 10.
c. Retailer

Answer 11.
b. Mates Receipt

Answer 12.
b. International business

Answer 13.
a. Joint stock company b. cooperative society

Answer 14.
The written agreement which

specifies the terms and conditions that governs the partnership is called a partnership deed.

Answer 15.
Industrial estate, which forms enclaves from domestic tariff areas. Provide an internationally com petite ve duty-free environment for export production at low cost

Answer 16.

17. Land pollution
Dumping of toxic waste on land causes land pollution. This damages the quality of land making it unfit for agriculture or plantation. Restoring the quality of the land that has already been damaged is a big problem.

Answer 18.
a. Employment
b.

• There must exist an employer-employee relationship.
• Employees get a salary or wages for their services
• Regularity in service

Answer 19.
a. Joint ventures
b. It helps to execute large projects requiring huge capital outlays and manpower.
The foreign business firms benefit from local partners knowledge of the host countries.

Answer 20.
Causes of Business Risks

1. Natural Causes
   it includes natural calamities like earthquake, flood, lightning, heavy rains, famine etc.
2. Human Causes
   It includes dishonesty, earless lessor negligence of employees, stoppage of work due to power failure, riots, management inefficiency etc.
3. Economic Causes
   It includes changes in demand, change in price, competition, technological changes etc.
4. Other causes
   it includes political disturbances, fluctuation in exchange rates, the change in govt, policies etc.

Answer 21.
Social responsibility of business refers to its obligation to take those decisions and perform those actions which are desirable in terms of objectives and values of our society. Obligations to take those decisions and perform those actions which are desirable in terms of the objectives and values of the society. Respect the aspirations of the society and try best to contribute to the achievement of these aspirations. Voluntary action from the part of business units for the benefit of society. (Consider any meaningful explanation of the social responsibility of business)

Answer 22.

1. Lack of personal contact
2. High promotion cost.
3. No after sale service
4. No credit facility
5. High dependence of postal service

Answer 23.
a. Cottage industries/village industries
b. Organized by individuals with Pvt resources, use family labor and locally available talent, small capital unit, equipment used is simple, produce simple products.

Answer 24.

1. A government company can be established by fulfilling the requirements of the Indian companies act.
2. It has a separate legal entity, apart from the government.
3. It enjoys autonomy in decision making.
4. These companies are able to control the market.

Answer 25.

A	B
(a) Payment at the time of delivery	(ii) Cash on delivery
(b) Plastic money	(iii) Credit/Debit card
(c) Exists in the cyberspace	(iv) Digital cash
(d) Outsourcing	(i) Non-core activities

Answer 26.
a. Partnership
b. Types of partnerships

I. Classification on the basis of duration

1. Partnership at will This type of partnership continue as long as the partners want a¬nd is terminated when any partners give notice of withdrawal from partnership to the firm
2. The particular partnership which is formed for the accomplishment of a particular project to be carried on over a specified period of time is called a particular partnership.

II. Classification on the basis of liability

1. General partnership In general partnership liability of partners is unlimited and joint Registrationoffirm is optional. Existe nee of a firm is affected by the death, insolvency or retirement of the partners.
2. Limited partnership In a limited partnership, the liability of at least one partner is unlimited whereas the rest may have limited liability. Registration of such a firm is compulsory. The existence of such a firm is not affected by the death, insolvency or retirement of the limited partners.

Answer 27.

Memorandum of Asso­ciation	Articles of association
Defines the objectives of a company	Defines rules of internal management
Main document of the company	Subsidiary document
Defines relationship of the company with outsiders	Defines relationship wi­th members
Every company has to file	Not compulsory to a pub­lic limited company
A company cannot act beyond the provision of the memorandum	Acts beyond articles can be satisfied by members
alteration is difficult	can be altered by special resolution

Answer 28.
a. Provide all facilities such as restaurant, telephone booth etc
b. Located at a central place
c. started at large scale basis as the joint stock company
d. Combinesthefunctionsofretaining and warehousing
e. centralized purchasing and decentralized selling.

Answer 29.
a. Insurance
b. Insurance is an agreement between two parties whereby one party undertakes, in exchange for a consideration, to pay the other party an agreed sum of money to compensate the loss, damage or injury caused as a result of some unforeseen events.

• The agreement put in writing and is known as a policy.
• The person whose risk is insured is called insured.
• The firm which insurances the risk of loss is called insurer.

Fundamental principle of insurance

The basic principle of insurance is that an individual or business concern chooses to spend a definitely huge amount involved in an indefinite future.

OR

a. Types of banks

1. Commercial banks
Commercial banks are institution dealing in money, ie, accepting deposits and grant loans and advances to their customers, two types of commercial banks

• Public sector banks Those banks which are owned and managed by the government.
• Private sector banks  Those banks which are owned and managed by the private parties.

2. Co-operative banks
Cooperative banks are governed by the provisions of State Cooperative Societies Act on the principles of self-help and mutual help, self-help, and mutual help.

3. Specialized bank
Specialized banks are foreign exchange banks, industrial banks, development banks, export-import banks catering to specific needs of these unique activities.

4. Central bank
The central bank of any country supervises, controls and regulates the activities of all the commercial banks of that country.

b. Functions of commercial banks

1. Acceptance of deposits
The commercial bank accepts depo¬sits from the people. The different types of deposits are a current account, savings account and fixed deposits.

2. Lending of funds
The second major activity of commercial banks is to provide loans and advances out of the money received through deposits. These advances can be made in the form of overdrafts, cash credits, discounting trade bill etc.

3. Cheque facilty
It is the very important service which is provided the customers by this one can any time collect theircheques and drawn on other banks. There are two type of cheques mainly

• bear er cheque and
• crossed cheque.

4. Remittance of funds
Another function of a commercial bank is providing the facility of fund transfer from one place to another, on account of the interconnectivity of branches.

5. Allied services
Besides these, a bank also provides allied services such as bill payments, locker facility, underwriting services, buying and selling of shares and debentures on instruction etc.

Answer 30.
Cost The cost of procurement of funds & cost of utilising the funds should be taken into account while deciding about the source of funds that will be used by an organization.

• Financial strength & stability of operation
  In the choice of source of funds, business should be in a sound financial position so as to able to repay the principal amount and interest on the borrowed amount. When the earing of the organisation are not stable, It can issue equality shares to collect the fund.
• Form of organization & legal status
  The form of business organisation and status influence the choice of a source for raising money.
• Purpose & time period
  Business should plan according to the time period for which the funds are required. A short-term need can be net through borrowing funds at low rate of interest through trade credit, commercial paper etc. For long-term finance sources such as issue of shares and de- bentares are more appropriate
• Risk
  Business should evaluate each of the source of finance in terms of the risk involved.
• Control
  Business firm should choose a source keeping in mind the extent to which they are willing to share their control over business
• Flexibility
  Another aspect affecting the choice of a source of finance is the flexibility ease of obtaining funds

OR

Public deposit, the deposit\data raised by the organisation directly from the public are known public deposits rates of interest offered on public deposits are usually higher than those allowed by a commercial bank.
Demerits

• It may cause dissatisfaction amongst the shareholders as they would get a lower dividend.
• It is an uncertain source of funds as the profits of a business are flue tuating.
• It may attract government regulation.
•