Time Allowed: 21\/2<\/sup>\u00a0hours<\/span> General Instructions to Candidates<\/span><\/p>\n Answer all questions from 1 to 9. Each carries 1 score. (9 \u00d7 1 = 9)<\/span><\/p>\n Question 1. Question 2. Question 3. Question 4. Question 5. Question 6. Question 7. Question 8. Question 9. Answer any 6 questions from 10 to 16. Each carries 2 scores. (6 \u00d7 2 = 12)<\/span><\/p>\n Question 10. Question 11. Question 12. Examples of Business Ethics:<\/p>\n Question 13. Question 14. Question 15. Question 16. Answer any 4 questions from 17 to 21. Each carries 3 scores. (4 \u00d7 3 = 12)<\/span><\/p>\n Question 17. Question 18. Question 19. Question 20. Question 21. 2. Export manufacturing under bond scheme: Under this facility firms can produce goods without payment of excise and other duties. The firms can avail this facility after giving an undertaking (i.e. bond) that they are manufacturing goods for export purposes.<\/p>\n 3. Exemption from payment of sales taxes: Goods meant for export purposes are not subject to sales tax. Income derived from export operations had been exempt from payment of income tax. Now this benefit of exemption from income tax is available only to 100 percent Export Oriented Units (100 percent EOUs) and units set up in Export Processing Zones (EPZs) or Special Economic Zones (SEZs) for selected years.<\/p>\n Answer the following question which carries 4 scores. (4 \u00d7 1 = 4)<\/span><\/p>\n Question 22. Answer:<\/p>\n Answer any 3 questions from 23 to 26. Each carries 4 scores. (3 \u00d7 4 = 12)<\/span><\/p>\n Question 23. Question 24. Question 25. Question 26. b) Outsourcing or Business Process Outsourcing (BPO): Merits of outsourcing:<\/p>\n Answer any 3 questions from 27 to 30. Each carries 5 scores. (3 \u00d7 5 = 15)<\/span><\/p>\n Question 27. Question 28. 2. Responsibility toward consumers:<\/p>\n Question 29. 2. Feasibility studies: After identifying a business opportunity, the promoters undertake some feasibility studies to determine the viability and profitability of the proposed activity.<\/p>\n 3. Name approval: After selecting the name of company the promoters submit an application to the Registrar of companies for its approval. The selected name is not the same or identical to an existing company.<\/p>\n 4. Fixing up signatories to the Memorandum of Association: Promoters have to decide about the members who will be signing the Memorandum of Association of the proposed company.<\/p>\n 5. Appointment of professional: Promoters appoint merchant bankers, auditors etc. to assist them in the preparation of necessary documents.<\/p>\n 6. Preparation of necessary documents: The promoters prepare certain legal documents which are to be submitted to the Registrar of companies. They are<\/p>\n Question 30. Answer any 2 questions from 31 to 33. Each carries 8 scores. (2\u00d7 8 = 16)<\/span><\/p>\n Question 31. b) Co-operative Society Merits:<\/p>\n Limitations:<\/p>\n Question 32. 2. Insurable interest: The insured must have an insurable interest in the subject matter of insurance. Insurable interest means the interest shown by the insured in the continued existence of the subject matter or the financial loss he is subjected to on the happening of an event against which it has been insured.<\/p>\n 3. Indemnity: All insurance contracts, except life insurance are contracts of indemnity. According to the principle of indemnity, in the event of occurrence of loss, the insured will be indemnified to the extent of the actual value of his loss or the sum insured which ever is less. The objective behind this principle is nobody should treat insurance contract as the source of profit.<\/p>\n 4. Subrogation: According to this principle, after the insured is compensated for the loss to the property insured by him the right of ownership of such property passes on to the insurer. This is because the insured should not be allowed to make any profit, by selling the damaged property.<\/p>\n 5. Causa proxima: When the loss is the result of two or more causes, the proximate cause for the loss alone will be considered by the insurance company for admitting the claim.<\/p>\n 6. Contribution: In certain cases, the same subject matter is insured with one or more insurer. In case there is a loss, the insured is eligible to receive a claim only up to the amount of actual loss suffered by him.<\/p>\n 7. Mitigation of loss: This principle states that it is the duty of the insured to take reasonable steps to minimize the loss or damage to the insured property. If reasonable care is not taken then the claim from the insurance company may be rejected.<\/p>\n Question 33. Services of Wholesalers to Retailers:<\/p>\n
\nCool off time: 15 Minutes<\/span>
\nMaximum Marks: 80<\/span><\/p>\n\n
\nIdentify the type of business organisation to which the registration is compulsory.
\na) Sole proprietorship
\nb) Partnership business
\nc) Joint Stock Company
\nd) Hindu Undivided Family Business
\nAnswer:
\nc) Joint Stock Company<\/p>\n
\nFind the odd one from the following,
\na) Banking
\nb) Mining
\nc) Warehousing
\nd) Advertising
\nAnswer:
\nb) Mining<\/p>\n
\nIdentify the type of warehouse where the imported goods can be kept prior to the payment of duties and taxes.
\na) Bonded warehouses
\nb) Government warehouses
\nc) Public warehouses
\nd) Private warehouses
\nAnswer:
\na) Bonded warehouses<\/p>\n
\nA business firm decided to help the affected people in Okhi cyclone. It belongs to ………… responsibility of the business.
\n\u0430) Discretionary
\nb) Legal
\nc) Economic
\nd) Ethical
\nAnswer:
\nd) Ethical<\/p>\n
\nWhich of the following is known as the birth certificate of a Joint Stock Company?
\na) Certificate of Incorporation
\nb) Memorandum of Association
\nc) Table A
\nd) Articles of Association
\nAnswer:
\na) Certificate of Incorporation<\/p>\n
\nFill up the series as per hint given:
\na) Capital required for the day-to-day activities of the business – Working capital
\nb) Capital required for acquisition of fixed assets – ………?…………
\nAnswer:
\nFixed capital<\/p>\n
\nThe apex banking institution set up to promote
\nagriculture and rural development in India is
\na) SIDBI
\nb) NABARD
\nc) BIFR
\nd) IBRD
\nAnswer:
\nb) NABARD<\/p>\n
\nBuying and selling of goods and services within the geographical boundaries of a nation is …………
\na) External trade
\nb) Internal trade
\nc) Entrepot trade
\nd) International trade
\nAnswer:
\nb) Internal trade<\/p>\n
\nIdentify the import document from the following
\na) Letter of credit
\nb) Bill of lading
\nc) Bill of entry
\nd) Certificate of origin
\nAnswer:
\nc) Bill of entry<\/p>\n
\nWrite any two merits of Government Company.
\nAnswer:<\/p>\n\n
\nIdentify the type of e-Business transaction referred in the following cases.
\na) A dealer in Kerala places an order through e-mail to Maruti Udyog Ltd. for supply of 20 cars.
\nb) Ms. Anasooya placed an order for a smartphone through online.
\nAnswer:
\na) B2B Commerce
\nb) B2C Commerce<\/p>\n
\nExplain the concept of business ethics with the help of an example.
\nAnswer:
\nEthics is concerned with what is right and what is wrong in human behavior. Business ethics refer to the socially determined moral principles which should govern business activities. Business ethics is the code of conduct followed and performed by every business. Ethical business behavior improves public image, earn\u2019s public confidence and leads to greater success.<\/p>\n\n
\nList out any two problems faced by small scale business in India.
\nAnswer:<\/p>\n\n
\nName any two products which are suitable for vending machine.
\nAnswer:<\/p>\n\n
\nWrite a short note on Export Processing Zone.
\nAnswer:
\nExport Processing Zones (EPZs): They are industrial estates, which form special enclaves separated from the domestic tariff areas. These are usually situated near seaports or airports. They are intended to provide an internationally competitive duty free environment for export production at low cost. They can import capital goods and raw materials for production of export goods without license.<\/p>\n
\nState any two objectives of small scale business.
\nAnswer:<\/p>\n\n
\nIdentify the types of manufacturing industries mentioned below.
\na) Production of cement by combining various ingredients like limestone, silicon etc.
\nb) Production of petrol, diesel and kerosene from crude oil.
\nc) Manufacturing of computers using different components.
\nAnswer:
\na) Synthetical Industry
\nb) Extrative Industries
\nc) Assembling Industry<\/p>\n
\nExplain any three features of departmental undertakings,
\nAnswer:
\nFeatures:<\/p>\n\n
\nList out any three differences between Memorandum of Association and Articles of Association.
\nAnswer:<\/p>\n\n\n
\n Memorandum of Association<\/td>\n Articles of Association<\/td>\n<\/tr>\n \n 1. It defines the object for which the company is formed<\/td>\n 1. They are rules of internal management of the company. They indicate how the objectives of the company are to be achieved<\/td>\n<\/tr>\n \n 2. It is the main document of the company<\/td>\n 2. It is a subsidiary document of the Memorandum of Association<\/td>\n<\/tr>\n \n 3. It defines the relationship of the company with outsiders<\/td>\n 3. It defines the relationship of the company with members<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nWrite any three ways in which a business organisation can enter into International Business.
\nAnswer:<\/p>\n\n
\nExplain any three schemes announced by the Government of India in Export-Import Policy (Exim Policy) for the promotion of foreign trade.
\nAnswer:
\nForeign Trade Promotion Measures and Schemes.
\n1. Duty drawback scheme: it refers to the refund of customs and excise duties paid on imported inputs used in the manufacture of export goods.<\/p>\n
\nMatch the following:<\/p>\n\n\n
\n A<\/td>\n B<\/td>\n<\/tr>\n \n a) Indian Railways<\/td>\n i) Government Company<\/td>\n<\/tr>\n \n b) LIC of India<\/td>\n ii) Multi-National Company<\/td>\n<\/tr>\n \n c) BHEL<\/td>\n iii) Departmental Undertaking<\/td>\n<\/tr>\n \n d) Honda Ltd.<\/td>\n iv) Statutory Corporation<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n\n
\n A<\/td>\n B<\/td>\n<\/tr>\n \n a) Indian Railways<\/td>\n 1) Departmental Undertaking<\/td>\n<\/tr>\n \n b) LIC of India<\/td>\n 2) Statutory Corporation<\/td>\n<\/tr>\n \n c) BHEL<\/td>\n 3) Government Company<\/td>\n<\/tr>\n \n d) Honda Ltd.<\/td>\n 4) Multi-National Company<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nIdentify the type of partners in the following cases:
\na) Mr. Nirmal contributed \u20b9 1 lakh as capital in Maithri Traders but do not participate in day to day activities.
\nb) A well-known person allows Maithri Traders to use his name but doesn\u2019t contribute capital or share profits.
\nc) Mr. Deepu pretends to be a partner in Maithri Traders, but actually he is not.
\nd) Mr. Rajesh contributed \u20b9 1 lakh as capital in Maithri Traders and participates in the conduct of business.
\nAnswer:
\na) Sleeping partner
\nb) Nominal partner
\nc) Partner by estoppel
\nd) Active partner<\/p>\n
\nWrite any four benefits of e-Banking.
\nAnswer:
\nBenefits of e-banking to customers:<\/p>\n\n
\nClassify the following into long-term and short-term sources of finance.
\na) Factoring
\nb) Retained earnings
\nc) Preference shares
\nd) Bank overdraft
\ne) Commercial papers
\nf) Debentures
\ng) Trade credits
\nh) Equity shares
\nAnswer:<\/p>\n\n\n
\n Long Term Sources of finance<\/td>\n Short Term Sources of finance<\/td>\n<\/tr>\n \n a) Retained earnings<\/td>\n a) Factoring<\/td>\n<\/tr>\n \n b) Preference shares<\/td>\n b) Bank overdraft<\/td>\n<\/tr>\n \n c) Debentures<\/td>\n c) Commercial papers<\/td>\n<\/tr>\n \n d) Equity shares<\/td>\n d) Trade credits<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n\u201cOutsourcing of non-core activities are beneficial to business units.\u201d
\nDo you agree? Comment on this statement by highlighting your views.
\nAnswer:
\na) Yes, I agree<\/p>\n
\nOutsourcing is a management strategy by which an organisation contracts out its major non-core functions to specialized service providers with a view to benefit from their expertise, efficiency and cost-effectiveness, and allow managers to concentrate on their core activities.<\/p>\n\n
\n\u201cRisk is an essential part of every business.\u201d Explain its causes.
\nAnswer:
\nCauses of Business Risks:
\nBusiness risks arise due to a variety of causes. They are:<\/p>\n\n
\nState any three responsibilities of business towards employees and any two towards consumers.
\nAnswer:
\n1. Responsibility Towards the workers:<\/p>\n\n
\n
\nWho are promoters? Briefly explain any four functions performed by them.
\nAnswer:
\nFunctions of a Promoter:
\n1. Identification of business opportunity: The first and foremost activity of a promoter is to identify a business opportunity.<\/p>\n\n
\n
\nWrite any five advantage of equity shares as a sources of finance.
\nAnswer:
\nMerits:<\/p>\n\n
\nIdentify the business organisations formed voluntarily by a group of people for mutual benefits, following the principle of \u2018one man one vote\u2019. Also explain its limitations.
\nAnswer:
\na) Co-operative Societies<\/p>\n
\nThe cooperative society is a voluntary association of persons, who join together with the motive of welfare of the members. The basis of cooperation is self help through mutual help, the motto is \u201ceach for all and all for each\u201d. The cooperative society is compulsorily required to be registered under the Cooperative Societies Act 1912. At least ten persons are required to form a society. The capital of a society is raised from its members through issue of shares.<\/p>\n\n
\n
\nExplain the major principles of insurance.
\nAnswer:
\nPrinciples of Insurance
\n![\"Plus](\"https:\/\/www.aplustopper.com\/wp-content\/uploads\/2018\/12\/Plus-One-Business-Studies-Model-Question-Paper-1-1-1.png\")
\n1. Utmost good faith: The insured must disclose all material facts about the subject matter to the insured. Otherwise the insurer can cancel the contract. The insurer must disclose all the terms and conditions in the insurance contract to the insured.<\/p>\n
\nExplain any four services each rendered by wholesalers to manufacturers as well as to the retailers.
\nAnswer:
\nServices of Wholesalers to Manufacturers:<\/p>\n\n