Plus One Business Studies Previous Year Question Papers and Answers With മലയാളം Explanation ( Question Paper 4 )

 

                           Improvement Question Paper 2018

Answer the following questions from 1 to 7. Each carries 1 score.

Question 1.
Fill as per the hint is given.
a. Hindrance of place Transportation
b. Hindrance of place

Question 2.
TATA Ltd., purchases tires from MRF Ltd.
This is an example of.
a. B2C Commerce
b. C2C Commerce
c. Intra B Commerce
d. B2B Commercepops

Question 3.
Rules regarding Internal management of a company is mentioned in the
a. Memorandum of Association
b. Articles of Association
c. Prospectus
d. Certificate of incorporation

Question 4.
They are petty retailers who have independent shops of a temporary nature and change their business from one locality to another,
a. Peddlers
b. Street traders
c. Cheap jacks
d. Market traders

Question 5.
Identify the first step in the export procedure.
a. Receipt of inquiry and sending quotations
b. Obtaining export license
c. Receipt of order or indent
d. Production or procurement of goods

Question 6.
These are warehouses licensed by the Government to accept imported goods prior to payment of tax and customs duty.
a. Private warehouses
b. Public warehouses:
c. Government warehouses
d. Bonded warehouses

Question 7.
Access international, a computer training institute located in London, allows C-Tech Computer Education of India, to use their logo and name for a consideration, this is an example of
a. Contract manufacturing
b. Licensing
c. Franchising
d. Joint venture

Fill in the blanks. The question carries 2 scores.

Question 8.

Answer any 6 questions from 9 to 15. Each carries 2 scores.

Question 9.
‘Charging fair prices from customers’ is an example for business ethics. Give two more examples of business ethics.

Question 10.
Some business organizations outsource their debt collection to outside agencies. Name this arrangement. List one merit of it.

Question 11.
For providing support to small-scale units, the government has formed many supporting institutions. List out any two.

Question 12.
GAMA Traders get the orders through a post and they deliver the products through the mail. Identify the form of retail outlet mentioned here and also state an advantage of it.

Question 13.
Fill in the blanks

Question 14.
Coparceners are the members of HUF business. Who is the head of such a business? Comment on his liability.

Question 15.
Railways and Post and Telegram are the examples of this type of public sector undertakings. Identify the type of PSU and give two features of it.

Answer any 3 questions from 17 to 20. Each carries 3 scores.

Question 16.
It is an arrangement where the owner of an asset, grants the other party the right to use the asset, in return for a periodic payment.
a. Name the arrangement
b. Name the owner and user in this arrangement.

Answer any 3 questions from 17 to 20. Each carries 3 scores.

Question 17.
For the upliftment of small-scale sector, Government provides various incentives. Briefly explain any three of them.

Question 18.
I am my own boss, everything is under my control”. For which form of business organization the above statement is CORRECT? Give any two merits of such business.

Question 19.
Export Processing Zone(EPZ) is one of the measures of foreign trade promotion. Brei fly explains it with an example.

Question 20.
Identify the public sector undertaking created by the Indian Companies Act 1956. List any two merits of it.

Question 21.
Match the following.

Answer any 3 questions from question numbers 22 to 25. Each carries 4 scores.

Question 22.
List any four benefits of international business to our country.

Answer any 3 questions from 23 to 26. Each carries 4 scores.

Question 23.
Identify the type of partners in the following cases:
a. Mr. Nirmal contributed Rs.l lakh as capital in Maithri Traders but do not participate in the day to day activities.
b. A well-known person allows Maithri Traders to use his name but doesn’t contribute capital or share profits.
c. Mr.Deepu pretends to be a partner in Maithri Traders, but actually, he is not.
d. Mr. Rajesh contributed Rs 1 lakh as capital in Maithri Traders and participate s in the conduct of business.

Question 24.
Write any four benefits of E-banking.

Question 25.
Classify the following into long term and short term sources of finance.
a. Factoring
b. Retained earnings
c. Preference Shares
d. Bank overdraft
e. Commercial papers
f. Debentures
g. Trade credits
h. Equity shares

Question 26.
“Outsourcing of noncore activities are beneficial to business units.”Do you agree? Comment on this statement by highlighting your views.

Answer any 3 questions from 27 to 30. Each carries 5 scores.

Question 27.
“Risk is an essential part of every business.” Explain its causes

Question 28.
State any three responsibilities of business towards employees and any two towards consumers.

Question 29.
Who are promoters? Briefly explain any four functions performed by them.

Question 30.
Write any five advantage of equity shares as a source of finance.

Answer any 2 questions from 31 to 33. Each carries 8 scores.

Question 31.
Identify the business organization formed voluntarily by a group of people for mutual benefits, Following the principle of “one man one vote”. Also, explain its four merits and three limitations.

Question 32.
Explain the major principles of insurance.

Question 33.
Explain any four services each rendered by wholesalers to manufactures as well as to the retailers.

Answers

Answer 1.
Hindrance of risk Insurance

Answer 2.
B2B Commerce

Answer 3.
Articles of Association

Answer 4.
Cheap jacks

Answer 5.
Receipt of inquiry and sending quotations

Answer 6.
Bonded warehouses

Answer 7.
Franchising

Answer 8.
Extractive Industry Service Industry

Answer 9.
a. Using fair weights for measurement to from modities.
b. Giving fair treatment to workers
c. Earning reasonable profits
d. Lack of desired services and country to consumers
e. Misleading and dishonest advertising

Answer 10.
Factoring or Outsourcing / BPO Merits Outsourcing helps in stimulating entrepreneurship, employment, and exports in the host countries. This will result in economic development.

Answer 11.

1. NABARD
2. SIDBI

Answer 12.
Mail order business

it is a kind of retail business which receive and deliver the goods through the mail. Goods are delivered to customers only on making full payment for the same and the goods may be sent by value payable post (VPP).

Advantage

It requires only limited capital as it does not require heavy expenditure on building and other infrastructural facilities.

• Elimination of middlemen between the buyer and seller
  

Answer 13.

a. Business	Profit
c. Employment	Salary/wage

Answer 14.
Head of the business Karta Liability of Karta is unlimited.

Answer 15.
Departmental undertaking

This is the oldest form of organizing public sector enterprises. It may be run either by the central government or by the state government. They are managed by the government employees and works under the center of a minister.
Eg: Railway, Post and Telegraph etc.

1. They are financed from the government Treasury.
   
2. They are subject to accounting and audit controls applicable other government activities.
   
3. The employees of the enterprise are government servants.
   

Answer 16.
a. Leasing
b.
Owner – Lessor
User – Lessee

Answer 17.
Land

Every State offers developed plots for setting up of industries.

Power

Power is supplied at a concessional rate of 50 percent.

Water use
Water is supplied on a nonprofit, no loss basis or with 50 percent concession or exemption from water charges for a period of 5 years,

Sales Tax

In all union territories, industries are exempted from sales tax, while some states extend an exemption for 5 years period.

Answer 18.
SOLE PROPRIETORSHIP

Sole proprietorship refers to a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risk. A sole proprietor is the one who is the only owner of a business.

Merits

• Quick decision
   
  a sole trader has full control over affairs of business, so he enjoys a considerable degree of freedom in decision making.
  
• Confidentiality of information
  
  A sole trader can keep all information related to business operations confidential and maintain secrecy.
  

Answer 19.
Export Processing Zone

These are set up to increase, production for exports. These are industrial estates which form enclaves within the national customs territory. They are usually located near the international air airport seaport. There are several export processing zones in India. They are

1. Kandla Export Processing Zone
   
   (KEPZ), Kanld a Gujarat.
2. Santa Cruz Electronic Export Processing Zone
   
   Bombay.
3. Noida Export Processing Zone
   
   (NEPZ), Noida, up.

Answer 20.
Government company

A government company is established under the Indian Companies Act, 1956 and is registered and governed by the provisions of the Indian Companies Act. According to the Indian Companies Act 1956, a government company means any company in which not less than 51 percent of the paid up capital is held by the central government, or partly by central government and partly by one or more state governments.

Merits

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.
   

Answer 21.

Answer 22.
a. Earning of Foreign exchange
b. More efficient use of resources
c. Improving growth prospects and employment potentials
d. Increased standard of living

Answer 23.

a.Sleeping Partner

b.Nominal Partner

c.Partner by Estoppel

d.Active Partner

Answer 24

Benefits of E-Banking
a.Any time service – Providing round the clock service.
b.Any where banking is possible (either at home, or office)
c.Creates financial discipline.
d.Less risk and greater security (risk of handling cash may be eliminated)
e.Work load on branches reduced.

Answer 25

a. Short term

b.Long Term

c.Long Term

d. Short Term

e.Short Term

f. Long Term

g. Short Term

h. Long Term

Answer 26.

Outsourcing

“BPO (business Process Outsourcing) is a system of getting business tasa k accomplished through an outside agency. Eg, transportation of raw mate rials into the factory may be entrusted to a transport company.

Benefits of outsourcing
1. Focusing of attention

Outsourcing benfits the organization by focusing on core areas and contracting out non-core business.

2. Quest for excellence

Outsourcing enables the firms to pursue excellence through division of labour and specialization.

3. Cost reduction

It helps the organization to get an expert and specialize services at competitive prices. It helps in improved service and reduction in costs.

4. Growth through alliance

To the extent you can avail of the services of others, your investment requirements are reduced, others have invested for you. Therefore you can expand rapidly.

5. Fillip to economic development

Outsourcing helps in stimulating entrepreneurship, employment, and exports in the host countries. This will result in economic development.

 

Answer 27
1. Natural Causes

it includes natural calamities like earthquake, flood, lightning, heavy rains, famine etc.

2. Human Causes

It includes dishonesty, carelessness or 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, a change in govt, policies etc.

 Answer 28.

Social Responsibility towards Employees:

a. Fair wages
b. Job security
c. Promotion opportunities

Social Responsibility towards Consumers:

a. Regular supply of commodities.
b. Better quality

 Answer 29.

Promoter
The persons who perform the work of promotion and bring an enterprise into existence are known as promoters. A promoter is an entrepreneur or businessman who gives birth to a business concern and a promoter may be an individual, a firm or a company.

Functions of Promoters:

1. Identification of business opportunity – Here the promoters have to discover a
business idea. It may be about a new line of business or the expansion of an existing business.
2. Feasibility studies – It involves the evaluation and analysis of the potential of the
proposed project. Promoters may conduct the following types of feasibility studies:
a. Technical feasibility – Here the promoters have to ensure the project is technically possible such as availability of raw materials, infrastructure, adequate technology etc.
b. Financial feasibility – If the project requires large funds which cannot be raised within the available means, it is better to stop that project.
c. Economic feasibility – Even if the project is technically and financially viable, it may have poor profitability, so that the promoters have to take expert advice.
Only when the above feasibility studies give positive results, the promoters can launch the new project.
3. Name approval – They have to select a name for the company and it should not be identical or same to an existing company. If it is satisfied by the Registrar of Companies, it will approved.
4. Fixing up of signatories to the Memorandum of Association – Here the promoters have to fix the members who are willing to sign the MoA and obtain their written consent to act as directors and to take the qualification shares.

 Answer 30.

Merits of Equity Shares (Ordinary shares)
1. Suitable for risk takers.
2. No obligation for dividend.
3. Permanent capital.
4. Provides creditworthiness to the company.
5. No charge against assets.

Answer 31. Co-operative Society

Merits of Co-operative Societies:
1. Equal voting rights – Each member is having equal voting rights irrespective of their capital contribution, as it follows the principle of ‘one man one vote’.
2. Limited Liability – Liability of members is limited to the extent of their capital contribution.
3. Stable existence – The existence of a society is not affected by the death, insanity,
insolvency etc. of members.
4. Economy in operation – To eliminate middlemen, the members offer honorary services to the society, which will in turn reduces cost of operation.

Limitations of Co-operative Societies
1. Limited resources – Low rate of dividend and one man one vote principle reverts the members to invest more capital.
2. Inefficient Management – Office bearers are elected from members and they may not be competent.
3. Lack of business secrecy – The general body openly discusses all facts and figures of the
society. Hence secrecy is lost.

Answer 32.

Principles of Insurance:
1. Utmost Good Faith – While entering into a contract of insurance, all the material facts are to be disclosed, otherwise it will become void.
2. Insurable Interest – The insured must have an interest on the subject matter of
insurance, otherwise the contract of insurance become void. E.g. a person who has
advanced money on the security of a house, has an insurable interest on that house.
3. Indemnity – All insurance except life insurance and personal accident insurance are based on the principle of indemnity. Here the insured is entitled to get only the actual amount of loss suffered by him and it will not be a source of profit.

4. Causa Proxima (Proximate Cause) – It means the nearest cause. It says that an
insured can recover the loss only when it is caused by any of the risk insured against.
5. Subrogation – This principle states that, after the payment of loss to the insured on the property, the whole right of such property is entitled with the insurer. This right is exercised by the insurer to earn any compensation for the damages on the property either from the party who were responsible for such damages or by the sale of such property to some others. This is because the insured should not make profit by selling the damaged property.
6. Contribution – This principle applies only when the same subject matter is insured with different insurers, here the actual amount of loss is divided among various insurers.

7. Mitigation of Loss – It is the duty of the insured to take preventive measures to
minimize the loss of the property. If any expenses are incurred by him for such
activities, he is entitled to get that much of amount along with the compensation from the insurance company.

Answer 33.

1. Services to producers:
a. Facilitate large-scale production:

Bulk orders from wholesalers enable the producers to undertake production on a large scale and take advantages of economies of scale.

b. Bearing risk

The wholesaler deals in goods in its own name and take the risk of loss or damage in storage and transit.

C. Financial assistance

Wholesalers provide financial assistance to manufacturers means they make ready cash payment for purchases and „ even advance money to producers.

d. Expert advice aflracoGraoonjcrauoo

As wholesalers are in direct contact with retailers they provide useful information regarding customer taste and preference and market conditions to manufacturers.

e. Help in marketing function:
Functions of wholesalers relieve producers from many of the marketing activities and enable them to concentrate on the production activity.

f. Facilitate production continuity by purchasing the goods and when these are produced

g. Storage/warehousing of goods produced

2. Services to retailers:

a. Availability of goods:

The wholesalers make the products of various manufacturers readily available to the retailers.

b. Marketing support:

The wholesalers perform various marketing functions and provide support to retailers.

c. Gant of credit;

Wholesalers provide credit facilities to retailers.

d. Specialized knowledge:

The wholesalers specialize in one line of products and know the pulse of the market. So they offer expert advice to retailers.

e. Risk sharing

Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, obsolescence etc.