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CBSE Commerce coaching Classes 11and 12
(Accounts, Business studies and Economics)
Class: XI-Bright
Subject: - BS
Date: - 6/2/2017
Marks: 90
Time: - 3hrs
1. Name the smallest unit in which the capital of a company is divided.
1
Ans: Shares
2. What term is used for sale of shares to private/public sector?
1
Ans: Private Placement
3. Which feature of partnership binds all the partners to the agreement signed by on partner?
1
Ans: Mutual Agency
4. Mention any two limitations of outsourcing.
1
Ans: Sweat shopping
5. Which document is called as “Charter” of the company?
1
Ans: Memorandum of association
6. State any two features of private company.
1
Ans: A company whole shares may not be offered to the public for sale and which operates under
regal requirements use strict than these for a public company
7. Name the source of finance which is available in normal course of purchase of goods?
1
Ans: Credit financing
8. A company got registered with an illegal object. Can the registration be questioned?
1
Ans: Yes
9. Give one example of chain stores.
1
Ans: Bata
10. Large quantity buying is a characteristic of which type of trade?
1
Ans: Wholesale Trade
11. What is internal trade?
1
Ans: Internal Trade refers to the trade which takes place inside the boundaries of country
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12. List some forms of interventions made by the Indian Chamber of Commerce & Industry for
promoting internal trade.
3
Ans: Interventions made by ICCI for promoting internal trade are
(I)
(II)
(III)
Labour legislation
Laue’s to check weights and measures
Sale tax and value added tax.
13. Explain how government encourages the growth of small scale industries
3
Ans: Government encourages the growth of small scales industries through
(I)
(II)
Institutional support
Incentives offered by the govt. to SSI
(I) Institutional Support
(A) To supply indigenous and imported machines in easy installments
(B) To exports products of SSI
(C) To provide technological assistance
(D) Sensitizing small in dustiest about need of credit rating
14. Describe any three features of equity shares
3
Ans: (I) Higher profit : the rate of interest for debenture holder and the rate of dividend for
preference shareholders are fixed.
(II) Control: Equity shareholders have control over the activities of the company the equity
shareholders have voting rights.
(III) Primary Risk bearers: the equity shareholders are the primary risk bearers of the company in
case the company suffers losses then equity shareholders have to bear the loss.
15. What do you mean by the principals derived from social values which guide and govern the
conduct of businessmen? Explain any two factors governing these principles and values.
3
Ans: The principals derived from the social values and which govern the code of conduct of the
business men are known as business ethics
The various factors are:
(I) Top management committee
(II) Publication of code
(III) Establishment of compliance mechanism
(IV) Measuring results
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(V) Involving employment at all levels
16. Bhavansh wants to set up a Private Ltd. Company. As an advisor of Bhavesh, guide him &
explain the steps of formation of a Private Ltd. Company.
3
Ans: To from a private limited company in two members are required and maximum 50. Bhuvans
must select at least one more member to form a private limited company after selecting the
members he must undertake the following two stages
1. Promotion
2. In corporation
(Explain the two stage)
17. Explain why host countries are motivated to give entry to multinational companies.
3
(I) Reduction In cost
(II) Help to avoid labour problem
(III) Benefits of latest development
(IV) Concentration on core competence
18. Explain with reasons why commerce in considered as the backbone of industry?
3
Commerce is considered as the backbone of industry because it preforms the following functions
(I) Helps in removing the hindrance of persons
(II) Helps in removing the hindrance of place.
(III) Helps in removing the hindrance of exchange of time
(IV) Helps in removing the hindrance of exchange
(V) Helps in removing the hindrance of risk
(VI) Helps in removing the hindrance of knowledge.
19. Sate any three situations where in a government company is the most suitable form of public
sector Organisation.
3
Ans: (I) If permits easy transfer of its shares
(II) Has a minimum of seven members and maximum no limit.
(III) Invites general public to subscribe to its shares and debentures.
20. Explain the difference between the co-operative organization & company form of business.
Company
Free transfer of shares
Co-op.
Transfer of
permitted
share
4
not
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One share one vote
One member one vote
No
special
privileges Many
concessions
granted by govt.
exceptions grated to cooperative
Organisations
by the got.
21. Explain the clauses of Memorandum of Association.
4
1. Name clause
2. Situation/domicile cause
3. object clause
4. Liability clause
5. capital clause
6. Association / Subscription clause
22. What are the general stores? Explain the features of general stores.
4
Ans: Main features.
A. These stores deal in items of daily use like groceries, confection any stationery etc.
B. They have a large variety in each line of product
C. They create personal relationship with customers
23. Why does business need multiple objective? Explain any two categories of such objectives.
5
Ans: Business needs multiple objectives as it cannot follow any one objective all objective are
important but the most imp. Objective of every business is craning profit.
The two categories of such objectives are:
1. Economic objectives (Explain)
2. Human Objective (Explain)
24. Explain the function of commercial banks
5
I. Collection of deposits
II. Granting loan
III. Agency function
IV. custodial service
V. collection of cheque and bills (explain)
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25. As a businessman what resources will be required by you to have a successful implementation
of E-business?
5
Ans: (I) Computers hardware
(II) Technically qualified staff
(III) Well designed website
(IV) Telecommunication facilities
(V) Computerized system of receiving payments.
26. Explain the factors that are to be kept in mind before selecting a source of finances.
5
Ans: (I) Cost in valued
(II) Financial capacity of the firm
(III) Form of business organisation
(IV) Risk involved
(V) Control
(VI) Flexibility (Explain)
27. Itinerant traders have been an integral part of internal trade in India. Analyze the reasons for
survival in spite of competition form large scale retailers.
5
Ans: They refer to retailers who have no fixed no fixed place of sale
They move from one place to another in search of customers
They are also known as mobile vendors
Itinerant deal in low price nonstandard items.
They deal in daily use items and requires small investment
28. Describe the various type of co-operative originations.
I. Consumer co-operative
II. Producers co-operative
III. Marketing Co-operative
IV. Co-operative credit / society
V. Co-operative farming society
VI. Housing co-operative society.
OR
Explain the type of partnership firms.
6
Ans: (I). Partnership at will
(II) Particular partnership
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(III) Fixed period partnership
29. Explain the merits and demerits of Departmental undertaking.
Ans: (I) Easy formation
(II) Effective Control
(III) Optimum utilization of resources
(IV) Accountability
(V) Public Revenue
(VI) Secrecy
6
Demerits
I. Flexibility
II. Lack of motivation
III. Lack of financial autonomy
IV. Inefficient management
V. Red Tapsim
OR
Explain the arguments in favour and against of Joint Venture.
30. What are retained earnings? Explain any four features of the same.
Retained earnings refer to unlisten butted profits after payment of dividend and taxes.
Features
I.
Cushion of security
II.
Conversion into ownership fund
III.
Medium term and long term finance
IV.
Funds for new and innovative project
OR
What are Public Deposits? Explain its advantages towards the company.
6
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