UT - 1- 2021-22

BUSINESS STUDIES(054): CLASS11

Max marks: 40 Time: (in 1.5 Hrs)
General Instructions:.
1. This question paper contains 17 questions
2. Marks are indicated against each question.
3. Question 1 to 10 are short questions carrying 1 mark each.
4. Question 11and12 are questions carrying 3 mark each.
5. Question 13 to 15 are questions carrying 4 mark each.
6. Question 16 to 17 are questions carrying 6 mark each.
7. Attempt all parts of the questions together.

Question 1 to 10 are short questions carrying 1 mark each

1. Gas authority of India (GAIL) is carrying on various projects of energy and power. [1]
Majority of its shares are held by government of India. It is registered under
Companies Act ,2013 and enjoy all the characteristics of a company. The board of
directors are appointed by the government.
Name the type of public sector enterprise referred in above Para.

2. Nourish Co. Beverages Ltd., the strategic alliance between Tata Global Beverages and [1]
Pepsi Co India has plans of delivering healthy beverages for a healthier India. The
company is set to disrupt the hydration category in India by delivering enhanced
wellness through innovative and affordable ready-to-drink beverages. The key
product of NourishCo Beverages Ltd., is Himalayan Orchard Pure . The reasons for this
alliances is complementary capabilities and resources such as distribution channels,
technology of both the parties. Identify the kind of business enterprise formed by
Tata Global Beverages and PepsiCo India. Give one benefit of the kind of business
enterprise highlighted in above case.

3. Identify the type of public sector undertakings in the following situations: [1]

i) Enterprise incorporated under a

special Act of Parliament or State a) Departmental undertaking
Legislature.
ii) Enterprise managed by the b) Statutory Corporation.
government and subject to strict
budgetary, accounting and audit
control.
iii) Business enterprise established by c) Government Company.
the government and controlled by the
Ministry concerned.

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 Read the following case and answer the questions 4 to 7.
Harsh, Dinesh and Kunal enter into partnership in a financing firm , Simplex Solutions.
They did not know how to develop the agreement for this purpose. So, they
approached a Chartered Accountant who advised them to prepare a document which
may stipulate the terms and conditions of the agreement. He also advised them to
get registered.
After six months Harsh and Kunal had gone for a meeting to London for analyzing
business prospectus in that country. Rani is a friend of Harsh . On Harsh’s request,
Rani accompanies him to London for the business meeting and actively participants in
the negotiation process for a business deal and gives the impression that she is also a
partner in Simplex Solutions. Three months credit is extended to Simplex Solutions on
the basis of these negotiation.
In the meanwhile, Dinesh invested a huge amount in buying shares of a new company
by borrowing money from Rajesh. This turned out to be a bad deal as the share prices
soon fell down. When Harsh and Kunal came back they said they were not liable to
pay the Rajesh as they did not take the money.
On the basis of the given information, answer the following questions:

4. Name the document about which the chartered accountant advised Mohan and [1]
Radha.
5. Specify what type of partner is Rani.? Will Rani be liable to lender if Simplex [1]
Solutions does not pay in due date.
6. Were Harsh and Kunal right in refusing to pay Rajesh. Under which aspect of [1]
partnership ? Explain.
7. Why did Chartered Accountant advice Gopal to get the firm registered? (one point) [1]
8. Commerce is a combination of two types of activities these are : [1]
a) industry and trade
b) trade and Commerce
c) Trade and auxiliaries to trade
d) production and consumption of goods.

9. Match the following: [1]

1 Analytical industry A Cement
2 Assembling industry B Television
3 Synthethic industry C Sugar
4 Processing industry D Oil refinery

10. This trade refers to purchase of goods from one country for the purpose of selling [1]
them to another country. _________________.

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 Question 11 and 12 are questions carrying 3 mark each.

11 Shaarvi, from the young age had a deep connection with traditional Indian textiles [3]
and craftsmanship. Founder and designer Shaarvi Kapoor who fulfilled her lifelong
dream of making a career in fashion by leaving her professional life behind and
pursued a design programme at the Los Angeles School of Design and Merchandising.
Thus, Shaarvi, got maximum real world fashion exposure. With her love from these
Indian fabrics and her arsenal of fashion knowledge she now intends to glorify these
national treasures with her readymade store ‘Arjoo’.
‘Arjoo’ is an initiative to incorporate a perfect mix of latest trends, luxury fabrics,
Indian traditional weaves and culture all under one roof. She manages the business
along with two employees i.e., salesman and a cashier. She usually takes advice from
her father in case of any managerial issue.
Now-a-days, Shaarvi, is facing a lot of problem as trends in the field are continually
changing, meaning businesses must continually adapt to market demands, this ever-
changing market along with strong competition has added to the trouble of declining
sales. Furthermore, one day Shaarvi, found her cashier doing some embezzlement of
cash.
a) Identify the different causes of business risks discussed in the above case. Also
quote the lines for the identified cause.
b) Are the above identified risks pure risk or speculative risk? Give reason in support
of your answer.

12 In an effort to promote local craftsmen of Bihar, Shrimad formed an organization [3]

where in, the persons voluntarily associate themselves to promote common
economic interest. The basic purpose of this organization was to help this craftsmen
to find market for their products. It had a managing committee that was elected on
the basis of ‘one member one vote’.
On the basis of the given information, answer the following questions:
a) Identify the form of business organization set up by Shrimad.
b) Quoting the lines from the above para, Enlist any three features of this form of
organization.

OR

Many early post-independence leaders, such as Nehru, were influenced by socialist

ideas and advocated government intervention to guide the economy, including state
ownership of key industries. As a result after Independence, government has taken
several steps to develop the country. Some of these steps are:
i. Setting up four major steel plants in the backward regions of the country.
ii. Setting up public sector companies like producing heavy engineering goods so as to
avoid importing these capital goods from other countries.
On the basis of the given information about public sector, Identify the role of Public
Sector that the government is trying to achieve by taking these steps.

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 Question 13 to 15 are questions carrying 4 mark each.

13 Rishita after finishing her Financial Management , realized that her family needs extra [4]
income as her father was about to retire. So, she decided to set up a garment
manufacturing unit. She received order for 500 shirts. Rishita started purchasing raw
materials from local suppliers and completed first order of shirts. As she completed
the order on time the other purchasers also started giving orders to Rishita on regular
basis. Her hard work and sincerity resulted in huge profits and led to the growth of
the business. After two years there were communal riots in her city due to which her
profits were adversely affected and availability of labour also became tough and
Rishita started suffering loss. After analyzing the situation for few months she
decided to shut down the business.
Identify any four different features of business discussed in the above case. Also
quote the lines for the identified features.

OR

Sunil wants to start a business of winter Jackets. He is facing a lot of problems as this
his first venture. The demand for winter jackets is high in winters and he wants to
make sure that he can meet the orders as and when demanded. There is a lot of
competition and he does not know how to inform the potential buyers about his
product. To beat the existing players in the market, he wants to sell his product in five
cities and does not know how to find potential buyers in different cities. Not only this,
he has to ensure that the winter Jackets reach the customers in different cities. All
this required a lot of money which is another problem.
Identify four problems faced by Sunil by quoting lines from the above and briefly
explain how he can overcome them?

14 Sahara India Pariwar owns many companies. Sahara India Life Insurance company [4]
limited is the first wholly Indian owned private life insurance company. It offers an
exhaustive range of competitive products/plans that caters to everyone from all
segments along with prompt and quality customer services and support. Sahara Asset
Management Company private limited is a professional mutual fund house which
manages many mutual fund schemes.
On the basis of the given information about Sahara India Pariwar, answer the
following questions:
a. Sahara India Pariwar owns both public and private companies. How is a public
company different from private company(2 points)?
b. Give two similarities between company and cooperative society form the business
organizations

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15 Saurabh and Gaurav felt that there was an opportunity of business in providing a [4]
service of online grocery stores to working people residing in Mumbai. They analyzed
the idea in terms of technical, financial and economic feasibility. Once they found all
aspects to be satisfactory they decided to start a company called ‘Grocery At Home
Private Ltd’. They got the name registered with registrar of the companies.
On the basis of the given information about Saurabh and Gaurav, answer the
following questions:
a) Identify the step in the formation of company highlighted in above case?
b) Enumerate the next three stages to be formed after the conclusion of aforesaid
stage in the step identified in part (a).

Question 16 to 17 are questions carrying 4 mark each.

16 Post and telegram department is a major part of Ministry of communication. It is [6]

organized, financed and controlled by the Communication Ministry. The finance is
arranged by annual appropriation from the government treasury. Being under the
control of the government budget accounting and auditing are applicable as in
government department
i. Identify the type of the public sector enterprise highlighted in aforesaid case?
ii. Explain any 2 features of the public sector enterprise mentioned in the above
case.
iii. Mention one advantage of such form of PSE.
iv. This form of enterprise suffers from serious drawbacks. Explain any 2 such
drawback.
17 Kavya Private Ltd. was established in the year 2012 by seven friends. As business of [6]
the company has increased, its management is now planning to convert it into
another form of business to raise fund from the public.
(i) Name the form of business Kaya Ltd. is planning to adopt.
(ii)Also state and explain the next steps to be followed by Kavya private Ltd. to raise
funds from the public.

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