MSD/2024-25/XI/B.

studies/Mock Paper/ P g 1 of 7

Name:
Class: XI
Subject:
Roll
Business
No. Studies Roll No.
Date:
Invigilator’s Sign. Mock Paper
Session: 2024-25
SUBJECT CODE : 054

Time allowed: 3 Hours Maximum Marks: 80

General Instructions:
1. Marks for questions are indicated against each question.
2. Question numbers 1-20 are very short answer questions carrying one mark each.
3. Question numbers 21 -24 are questions carrying 3 marks each. Answers to them should not normally
exceed 50-75words each.
4. Question numbers 25-30 are questions carrying 4 marks each. Answers to them should not normally
exceed 100-125 words each.
5. Question number 31-34 are long answer question carrying 6 marks. Answers to them should not normally
exceed 150-175 words each.
6. Answers should be brief and to the point and above word limit be adhered to as far as possible.

Q1. Which of the following is not the consequence of non-registration of a partnership firm?
(a) The firm can’t file a suit against third parties.
(b) The firm can’t file a case against the partners.
(c) The firm can’t contribute in business legally.
(d) A partner of an unregistered firm cannot file a suit against the firm or other partners (1)

Q2. Which of the following is incorrect regarding the types of manufacturing enterprises?
a) In a Small enterprise investment in plant and machinery is more than twenty-five lakh rupees does exceed
five crore rupees.
b) In a Microenterprise investment in plant and machinery does not exceed twenty-five lakh rupees.
c) In a medium enterprise investment in plant and machinery is more than five crore rupees but does not exceed
ten crores rupees.
d) In a Small enterprise investment in plant and machinery is more than twenty-five lakh rupees but does not
exceed three crore rupees. (1)

Q3. The board of directors of a joint stock company is elected by

(a) General public (b) Government bodies
(c) Shareholders (d) Employees (1)

Q4. The maximum number of partners allowed in the banking business are
(a) Twenty (b) Ten
(c) No limit (d) Two (1)

Q5. In a cooperative society, the principle followed is ______________.

(a) One share one vote (b) No voting rights to members
(c) One man one vote (d) Multiple votes by members (1)

Q6. Chennai Refineries Ltd. import crude oil and separates different products like petrol, diesel,
etc. Name the type of manufacturing industry.
(a) Synthetical (b) Analytical
(c) Processing (d) Assembling (1)
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Q7. Which of the following is not known as service industry? (1)

a) Insurance Industry b) Advertising Industry
c) Processing Industry d) Banking Industry

Q8. Who among the following are the highest risk-takers? (1)
a) People practicing a profession b) People engaged in career employment
c) Entrepreneurs d) All of these

Q9. Preliminary Contracts are: (1)

a) binding on the company b) binding on the guarantor
c) not binding on the company d) binding on the promoters

Q10. To which class does Mr Shayam’s Company belong? (1)

(a) Public Company (b) One Person Company
(c) Private Company (d) None of these

Q11. Assertion (A): Timely decisions of sole proprietor helps him/her to take advantage of market opportunities
as and when they arise.
Reason (R): Sole proprietor can be easily started of dissolved at any time with minimum legal formalities.
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 and 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 the Reason (R) is True. (1)

Q12. Recognise which of the following are itinerant retailers? (1)

a) General Stores b) Hawkers and paddlers
c) Second-hand goods shop d) Street stall holders

Q13. Assertion (A): E-banking allows bank customers to operate their accounts from their personal computer or
phone.
Reason (R): One can manage accounts, pay bills, receive funds over the internet through E-banking.
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 and 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 the Reason (R) is True. (1)

Q14. Which of the following is an objective for the Make in India initiative launched by the Government of
India?
a) Encourage domestic companies to manufacture their products in India
b) Encourage multinational companies to manufacture their products in India
c) All of these
d) Job creation and skill enhancement (1)

Q15. Business risk is not likely to arise due to.

a) Changes in the government policy b) Good management
c) Employee dishonesty d) Profit earning (1)

Q16. Every partner acts in the capacity of:

a) An Agent as Well as a Principal b) Only agent of the firm
c) On Principal of the firm d) None of these (1)
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Q17. Geeta has Rs.20,000 in her account. He doesn’t have any use of these for two years. To earn more interest
which type of bank account she would be opened with the bank?
(a) Recurring Deposit (b) Fixed Deposit
(c) Current Account (d) Saving Account (1)

Q18. The insured is expected to disclose all the important facts related to property insured. Which principle is
discussed here?
(a) Mitigation (b) Insurable Interest
(c) Indemnity (d) Utmost Good Faith (1)

Q19. Prabhat and Rishi are doing separate business of installing Centralised Air Conditioning units in
Mumbai. They enter into a partnership contract to install Centralised AC unit in a hotel in Shirdi.
Identify the type of partnership being highlighted in the given case.
a) Partnership at will b) Particular Partnership
c) General Partnership d) Limited Partnership (1)

Q20. Which of the following is true about statutory corporations?

a) Statutory corporations are subject to the same accounting and audit procedure as are applicable to
government departments.
b) Statutory enterprises are funded directly by the government treasury.
c) Statutory corporations are public enterprises that come into existence by a Special Act of the Parliament.
d) The employees of statutory enterprises are civil servants. (1)

Q21. Nestle essay is a Swiss transmission food and drink company headquartered in wave wad Switzerland. It
has been the largest food company in the world Nestle has over 8000 branch with a white range of products
across a number of markets including coffee bottle water milkshakes and other beverages breakfast cereal
infant food performance and health care nutrition seasoning soap and sources frozen and refrigerator foods
and pet foods in the.
a) What form of enterprise is Nestle?
b) State any three features of the firm of enterprise as identified in part (a) of the question. (3)

Q22. Mr. Singh is in ‘lighting’ business for the past 15 years. To help his friend, Mr. Yadav, a beginner he
projected himself as a partner before Mohd. Abdul, a whole sale dealer of fancy lights. Mohd. Abdul gave
Mr. Yadav the stock without asking for payment and gave him credit limit of one month.
Will Mr. Singh be liable to Md. Abdul if Mr. Yadav does not pay him on time?
Classify Mr. Singh’s role here along with an explanation. (3)

Q23. Mr. James, a promoter of Richi Rich Ltd. Submitted all relevant documents with the registrar of the
companies and obtained the certificate of incorporation. The directors decided to go for capital
subscription and took advice of Mr. James who insisted to disclose all factual information in the public
document on the basis of which the general public will apply for the shares.
(a) Name and explain the document that has been referred here by the promoter?
(b) Name the stage when the shares are issued. (3)

Q24. After completing their graduation, Salman and Ram decided to set up a flour mill to earn income. Their
main job is to purchase wheat from the market and have ground it into flour. Their flour is available in the
packets of 5kg, 10kg and 20kg. They sell these under the brand name ‘Desh ka Atta’, and earn a reasonable
profit of 10% on cost. They worked very hard to flourish the business on a regular basis, and hence in no
time their brand became very popular in the market. The main reasons for the success of their business ae
superior quality and low price. Their business was running very well. But one day, the flour mill caught
fire, and as a result they had to suffer a heavy loss. However, Salman and Ram did not lose their heart, and
MSD/2024-25/XI/B.studies/Mock Paper/ P g 4 of 7

worked even harder. Gradually their business was back to normal. Now they are fully satisfied with their
business.
Quoting the lines from the above para, Explain any three characteristics of business (3)

Q25. Rakhi Footwear Ltd. deals in shoes. This company has opened 500 shops in different places in the whole
country. The specialty of the business of this company is that at all its shops the goods available are of the
same type and their price also is the same. By starting this type of business the company has done away
with the Middlemen. The people are happy to buy goods from the producer or manufacturer directly.
Identify the trade of 'Rakhi Footwear Ltd.' and describe any five of its advantages. (4)

Q26. Gurpreet operates a textile business. His family is joint and has a lot of ancestral property. All the 15
family members are a part of this business. He is the eldest male member in the family so he hands the
business. He is liable to all the creditors of the business as he is the decision-maker. Gurpreet's grandson
has just born a few days ago and he is also the member of the business.
a. Which form of business is being undertaken by Gurpreet?
b. Identify the features of this form of business highlighted in the above para.
c. Textile business is a part of which type of industry according to you. State. (4)

Q27. Dhani Mani bank is private sector bank offering various services to its customers. it offers various type of
bank account option to its customer. Rakesh being a businessman has chosen the type of account in which
the deposits are the most liquid and there is no limit to the number of transactions or the amount off
transactions in a day. On the other hand, his mother has open a type of account where she can
conveniently deposit the money she saves. She has got cheque facility and the lot of flexibility for deposit
and withdrawal whereas Rakesh’s sister Reema opened the account where she will deposit rs2,000 per
month for next year.
1. Identify the various types of bank account used by Rakesh and his family
2. Describe briefly two other types of account. (4)

Q28. Mansi is running a general store. The store was insured against natural disaster like flood, earthquake and
fire from Hindustan general insurance company for the amount of ₹50 lacs. Heavy raining in the city
caused massive flood. This left the store without any security. The store was looted by people which was
caught in CCTV camera. She claimed from the insurance company the amount of damage of ₹13 lacs for
the material by theft, she also claimed another ₹25 lacs for now converting the store into fully AC and
additional floor for more storage space. Insurance after assessing the damage to the property and stock
due to flood and seeing the CCTV footage accepted the claim of ₹13 lacs. Mansi argued that as she was
paying premium for ₹50 lacs she should be paid the full claim of ₹43 lacs.
(1) What is the fundamental principle of insurance?
(2) Identify and explain the principle of insurance involved by insurance company by accepting the claim
amount. (4)

Q29. Infotech Ltd. is running a website for selling gift items and getting orders from all over the country.
Recently, the company got the order of 100pieces of a particular gift item from a company for its
employees. Infotech arranged the items and delivered it on time but the company returned the whole lot
and said that they ordered some other item and not the one which is delivered. The Infotech had to accept
the rejected order back as they were not having a proper record of the items selected by the company.
(a) State the problem/risk faced by Infotech.
(b) How can Infotech Ltd. avoid this risk?
(c) State other risks related to e-business. (4)

Q30. ABC Chemicals Limited has become the leader in manufacturing and sale of 4 e-saving drugs in India. It
provides medicines as per the prescribed standards and always prints correct dates of expiry on each batch
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of drugs. Every month, it organizes free medical camp for the residents of Mumbai slums. It strictly
follows the provisions of Environment Protection Act. Mean Refineries (P) Ltd. has its factory in the
midst of the over polluted old Delhi area. Its licence under the AIR pollution control Act has expired and
it crossed the emission standards of pollution. It Creates lots of nuisance and dirt in the area and sells low
quality oil at high rates. Study the given facts and answer?
(a)Which two social responsibilities have been overlooked by Mean Refineries?
(b) What is the social responsibility of both the companies towards the government? (4)

Q31. Kiran is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood
corner shop selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with
three branches in the city. Although she looks after the varied functions in all the branches, she is wondering
whether she should form a company to better manage the business. She also has plans to open branches
countrywide.
(a) Explain two benefits of remaining a sole proprietor.
(b) Explain two benefits of converting to a joint stock company.
(c) What legal formalities will she have to undergo to operate business as a company? (6)

Q32. Welcome food Pvt Ltd. deals in grocery items of daily domestic usage. Its business is spread throughout
Delhi. The company’s 20 stores are providing their services to the residents of Delhi. All the business
activities of this company are done through internet. Its main activities are obtaining information about
orders of goods, receiving orders of goods, making payments, receiving payments, inventory management,
product development etc. The use of Internet in business activities has resulted into reduced cost of business
transactions. The customer also can shop sitting at home or office. They can access the internet to buy goods
and services. The use of Internet has considerably reduced dependence on paperwork for the company.
a) Which system of business is being followed by Welcome foods Pvt. Ltd.?
b) Identify and explain three benefits of the system of business identified in (a) by quoting the lines from the
above para. (6)

Q33. What are the major areas of social responsibility of business? (6)

Q34. Ved recently joined an export-oriented unit in Kerala under the name 'Spices Ltd.'. On joining the firm he
found out that the company has reserved about 20 percent of the posts for specially-abled people. As his first
assignment, he was asked to process an export order received from a Dubai based company. He has
successfully completed all the formalities with regard to this export order and has prepared the invoice.
In the context of the above case answer the following questions:
a. What is the next step that he has to perform in order to successfully complete his first work assignment?
b. Define the term Pre-shipment inspection and write down it's benefits also. (6)