Note: Only answered questions are included in this key.
Section 1: Answer any 8 questions (1 mark each)
1. Which of the following is not a social responsibility of business?
c) Getting high return on capital by any means
2. Give an example for B2B commerce.
A manufacturer selling raw materials to another manufacturer.
3. As per the SEBI Guidelines the limit of minimum subscription is ______ percent of the size of the issue.
90%
4. Identify the term used to refer the specialized person who undertakes all activities in the formation of a company.
Promoter
5. Public Provident Fund (PPF) is a financial service provided through ______.
b) Post offices
6. Pick out the odd one.
d) Commercial papers
7. Profit acts as a powerful motivator for every businessman. Identify which among the following indicates the role of profit in business.
d) i, ii, iii and iv
8. Choose the departmental undertaking from the following public sector undertakings.
b) Indian Railway
9. Complete the series.
Retained earnings
10. The liability of co-parceners in a Hindu Undivided Family business is ______.
b) Unlimited
Section 2: Answer any 5 questions (2 marks each)
11. Point out any two features of Government company.
Two features of a Government company:
- It is registered under the Companies Act.
- The government holds at least 51% of the paid-up share capital.
12. A fullproof payment mechanism is very essential for the success of online transactions. Enlist any four ways through which payment for online shopping may be done.
Four ways of payment for online shopping:
- Credit/Debit Cards
- Digital Wallets (e.g., Paytm, PayPal)
- Net Banking
- UPI (Unified Payments Interface)
13. Distinguish between goods and services. (Any 2 points)
Two differences between goods and services:
- Goods are tangible, services are intangible.
- Goods can be stored, services cannot.
14. What do you mean by feasibility studies?
Feasibility studies are detailed analyses conducted to determine whether a business idea is practical, viable, and worth pursuing.
15. Expand the following abbreviations.
Expansions:
a) BPO – Business Process Outsourcing
b) VPN – Virtual Private Network
a) BPO – Business Process Outsourcing
b) VPN – Virtual Private Network
16. Registration of a company requires the preparation and filing of some important documents. Prepare a list of them. (Any 4)
Four documents required for company registration:
- Memorandum of Association
- Articles of Association
- Director's consent
- Declaration of compliance
Section 3: Answer any 5 questions (3 marks each)
17. State any three characteristics of statutory corporations.
Three characteristics of statutory corporations:
- Created by a special Act of Parliament or State Legislature.
- Has a separate legal entity.
- Managed by a government-appointed board.
18. Write short notes on : a) Life insurance b) Marine insurance
Short notes:
a) Life insurance: Provides financial protection to the family in case of the policyholder's death.
b) Marine insurance: Covers loss or damage to ships, cargo, terminals, and transport by sea.
a) Life insurance: Provides financial protection to the family in case of the policyholder's death.
b) Marine insurance: Covers loss or damage to ships, cargo, terminals, and transport by sea.
19. Mr. Deepak, a sole trader acquired a machinery on a monthly rental basis from an outside agency.
a) Type of financial service: Leasing
b) Two merits:
b) Two merits:
- No large upfront investment required.
- Tax benefits on lease rentals.
20. How a business enterprise can foster ethics in their activities? (Hint : Elements of Business Ethics)
How a business can foster ethics:
- By implementing a code of conduct.
- Regular ethics training for employees.
- Establishing whistleblower policies.
Section 4: Answer any 4 questions (4 marks each)
21. This fund remains in the business over a long period and is not expected to be withdrawn otherwise than on the liquidation of business. Write the name of the source of finance mentioned above and state any 2 features of it.
Source of finance: Equity Share Capital
Two features:
Two features:
- Permanent capital.
- No fixed dividend obligation.
22. Discuss the following points as arguments against social responsibility of business. a) Burden on consumers b) Violation of profit maximization objective.
Arguments against social responsibility:
a) Burden on consumers: Costs of social programs are passed to consumers through higher prices.
b) Violation of profit maximization: Social goals may divert resources from profit-making activities.
a) Burden on consumers: Costs of social programs are passed to consumers through higher prices.
b) Violation of profit maximization: Social goals may divert resources from profit-making activities.
23. a) What are global enterprises? b) Why are they considered superior to other business organisations?
a) Global enterprises: Large companies operating in multiple countries with integrated operations.
b) Superiority: Access to advanced technology, large resources, and global markets.
b) Superiority: Access to advanced technology, large resources, and global markets.
24. Draw a neat diagram depicting the different types of trade and auxiliaries to trade.
Diagram not represented in text format.
25. A seminar is scheduled in your class on "BUSINESS AND ENVIRONMENTAL PROTECTION". As the moderator, how will you explain the need for pollution control?
Need for pollution control:
- Protects human health.
- Ensures sustainable development.
- Avoids legal penalties.
- Enhances corporate image.
26. Aman and Anamika are partners in a firm. In order to avoid future conflicts in business they decided to prepare a written document regarding their agreement.
a) Written document: Partnership Deed
b) Six contents:
b) Six contents:
- Name of the firm
- Profit-sharing ratio
- Capital contribution
- Roles and responsibilities
- Dispute resolution method
- Duration of partnership
27. Briefly explain the following principles of insurance. a) Indemnity b) Mitigation of loss
Principles of insurance:
a) Indemnity: Restores the insured to the same financial position as before the loss.
b) Mitigation of loss: The insured must take reasonable steps to minimize the loss.
a) Indemnity: Restores the insured to the same financial position as before the loss.
b) Mitigation of loss: The insured must take reasonable steps to minimize the loss.
Section 5: Answer any 3 questions (5 marks each)
28. Prepare a comparative table of e-business with traditional business on the basis of the following indicators.
Comparative table of e-business vs traditional business:
| Indicator | E-Business | Traditional Business |
|---|---|---|
| Cost of setting up | Lower | Higher |
| Physical presence | Not required | Required |
| Interpersonal touch | Limited | High |
| Transaction risk | Higher (cyber risks) | Lower |
| Formation | Easy and quick | Time-consuming |
29. Distinguish between shares and debentures. (Any 5 points)
Five differences between shares and debentures:
- Shares represent ownership; debentures are debt instruments.
- Shareholders get dividends; debenture holders get interest.
- Shares are risky; debentures are less risky.
- Shares are not redeemable; debentures are redeemable.
- Shareholders have voting rights; debenture holders do not.
30. Match Part A with Parts B and C.
Matching table:
| Part A | Part B | Part C |
|---|---|---|
| Economic activities | Salary or wages | Earning for livelihood |
| Non-economic activities | Psychological satisfaction | House wives |
| Business | Commerce + Industry | Profit through customer satisfaction |
| Profession | Expert services | Code of conduct |
| Employment | Wealth creation | Service agreement |
31. Describe the limitations of e-business. (Any 5 points)
Five limitations of e-business:
- Lack of personal touch
- Security and privacy concerns
- Legal issues in cross-border transactions
- Dependence on technology
- Digital divide limits reach
Section 6: Answer any 2 questions (8 marks each)
32. Discuss the factors determining the choice of an appropriate form of business organisation.
Factors determining choice of business organisation:
- Capital requirement
- Liability of owners
- Degree of control desired
- Nature of business
- Stability and continuity
- Government regulations
- Tax implications
33. Explain briefly the various functions of commercial banks.
Functions of commercial banks:
- Accepting deposits
- Granting loans and advances
- Agency functions (e.g., fund transfer, collection of cheques)
- General utility services (e.g., locker facility, forex services)
- Credit creation
34. Describe any four merits and any four limitations of a co-operative society.
Merits and limitations of a co-operative society:
Merits:
Merits:
- Democratic management
- Limited liability
- Government support
- Elimination of middlemen
- Limited capital
- Lack of managerial efficiency
- Excessive government control
- Conflict among members