Kerala Plus One Business Studies Board Model Paper 2022 with Answers

Teachers recommend solving Kerala Syllabus Plus One Business Studies Previous Year Question Papers and Answers Pdf Board Model Paper 2022 to improve time management during exams.

Kerala Plus One Business Studies Board Model Paper 2022 with Answers

Answer any 8 questions from 1 to 10. Each carries 1 score. (8 × 1 = 8)

Question 1.
Profit is the reward of
a) Employment
b) Business
c) Profession
d) All of these
Answer:
b) Business

Question 2.
‘One man one vote’ is the principle applicable to _____ form of tjusiness.
(a) Sole proprietorship
(b) Partnership
(c) Joint Stock Company
(d) Co-operative Society
Answer:
(d) Co-operative Society

Question 3.
Identify the business which is brought into existence by a Special Act of Parliament or State Legislature.
a) Departmental undertaking
b) Public Corporation
c) Government Company
d) Private Company
Answer:
b) Public Corporation

Question 4.
Name the warehouse to store imported goods prior to the payment of tax and customs duty.
a) Private warehouse
b) Public warehouse
c) Bonded warehouse
d) Govemment warehouse
Answer:
c) Bonded warehouse

Question 5.
Identify the type of social responsibility in the given statement. ‘Helping the affected people due to natural calamity.’
a) Economic
b) Legal
c) Ethical
d) Discretionary
Answer:
d) Discretionary

Question 6.
Identify the document related with the public subscription of shares.
a) Memorandum of Association
b) Articles of Association
c) Prospectus
d) None of these
Answer:
c) Prospectus

Question 7.
Ploughing back of profit in the business is also known as…
a) Retained earnings
b) Public deposit
c) Trade credit
d) Lease financing
Answer:
a) Retained earnings

Question 8.
MSMED Act 2006 deals with
a) Micro Enterprise
b) Small Enterprise
c) Medium Enterprise
d) All of these
Answer:
d) All of these

Question 9.
VPP is associated with business given below.
a) Departmental store
b) Chain store
c) Mail order business
d) Supermarket
Answer:
c) Mail order business

Question 10.
Scope of International business includes
a) Export and Import
b) Licensing and franchising
c) Contract manufacturing
d) All of these
Answer:
d) All of these

Answer any 4 questions from 11 to 12. Each carries 2 scores. (4 × 2 = 8)

Question 11.
Write any two characteristics of business activity.
Answer:
Characteristics of Business Activities
i) An economic activity: Business is an economic activity with the object of earning profit.
ii) Production of goods and services: It includes the activities concerned with the production or purchase of goods and services.

Question 12.
What is Government Company?
Answer:
A Government Company is established under the Indian Companies Act, 2013. According to the Indian Companies Act 2013, a government company means any company in which not less than 51 percent of the paid up capital is held by the central government, or by any state government or partly by central government and partly by one or more state governments.

Question 13.
Write any two benefits of e-Banking.
Answer:
a) e-banking provides 24 hours, 365 days a year services to the customers of the bank.
b) Customers can make transactions from office of house or while travelling.
c) It creates a sense of financial discipline.

Question 14.
Explain B2B commerce with one example.
Answer:

1. B2B Commerce: It is that business activity in which two business units make electronic transaction. Eg. making enquiries seeking or placing orders, communicating supply of goods, making payments, and so on.
2. Accept quotations through online, give orders for goods through online.

Question 15.
Name any two documents required in the formation of company.
Answer:
a) Memorandum of Association
b) Articles of Association
c) Consent of proposed directors

Question 16.
What is working capital requirements?
Answer:
Working Capital requirements: A business needs funds for its day to day operation. This is known as working capital requirements. Working capital is required for purchase of raw materials, to pay salaries, wages, rent and taxes etc.

Question 17.
Write any two services provided by retailers to manufacturers.
Answer:

1. Retailers undertake personal selling efforts and thus, help to increase the sale of the products.
2. As retailers are in constant touch with customers, they can provide various market information to the producers.

Answer any 4 questions from 18 to 23. Each carries 3 scores. (4 × 3 = 12)

Question 18.
Write the three forms of public sector enterprises.
Answer:
1) Departmental Undertakings
2) Government companies
3) Statutory Corporation

Question 19.
Give any three causes of environmental pollution with one example each.
Answer:

1. Air Pollution – Air pollution is mainly due to Carbon monoxide emitted by automobiles and smoke and other chemicals from manufacturing plants. It has created a hole in the ozone layer leading to global warming.
2. Water pollution – Water becomes polluted primarily from chemical and waste dumping. It has led to the death of several animals and caused serious problem to human life.
3. Land Pollution – Dumping of toxic wastes reduces the quality of land and making it unfit for agriculture or plantation.

Question 20.
Briefly explain the following:
a) Lease financing
b) Factoring
Answer:
(a) Lease Financing: A lease is a contractual agreement whereby the owner of an asset (lessor) grants the right to use the asset to the1 other party (lessee). The lessor charges lease rent for asset for some specified period.

Merits

1. The lessee can acquire the asset with a lower investment.
2. Lease rentals paid by the lessee are tax deductible. It provides finance without diluting the ownership or control of business.

(b) Factoring: Factoring is a method of raising short-term finance for the business in which the business can take advance money from the bank against the amount to be realised from the debtors. By this method, the firm shifts the responsibility of collecting the outstanding amount from the debtors on payment of a specified charge.

Merits

1. It is cheaper than bank credit
2. Factoring provides steady cash inflow.
3. It ensures cash inflows from credit sales.

Question 21.
Briefly explain any two types of Itinerant retailers.
Answer:
Types of Itinerant Retailers

1. Peddlers and Hawkers: They carry the products on a bicycle, a hand cart, a cycle-rickshaw or on their heads, and mq)/e from place to place to sell their products at the doorsteps of the customers. They generally deal in low-value products such as toys, vegetables, fruits etc.
2. Market traders: They are the small retailer who open their shops at different places and sell the goods on fixed days such as every Saturday or Tuesday. These traders deal in single line of goods such as toys, readymade garment, crockery etc.

Question 22.
Write any three disadvantages of mail order business.
Answer:
Disadvantages

1. It has to spend a large amount for advertisement.
2. There is no direct personal contact between the buyer and the seller. ,
3. They are not suitable for heavy and perishable goods.

Question 23.
Give three benefits of international business,
Answer:
A) Benefits to Nations

1. Earning of foreign exchange : It helps a country to earn foreign exchange which can be used for importing capital goods.
2. More efficient use of resources : External trade enables a country to utilise the available resources in the best possible manner.

B) Benefits to Firms:

1. Prospects for growth: It helps firms to create demands for their products in foreign countries.
2. Enhances competition : External trade enhances healthy competition.

Answer any 4 questions from 24 to 29. Each carries 4 score. (4 × 4 = 16)

Question 24.
What is business risk? Mention any two causes of business risk.
Answer:
The term ‘business risks’ refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events.
Business enterprises may face two types of risk, i.e. speculative risks and pure risks. Speculative risks involve both the possibility of gain as well as the possibility of loss. It arises due to change in demand, change in price etc. Pure risks involve only the possibility of loss or no loss. The chance of fire, theft or strike is examples of pure risks.

1. Natural causes: It includes natural calamities like flood, earthquake, lightning, heavy rains, famine, etc.
2. Human causes: Human causes include dishonesty, strikes, riots, management inefficiency, etc.

Question 25.
Distinguish between Active and Nominal Partner.
Answer:
(a) Active partner : A partner who contributes capital and takes active part in the business is called an active partner.
(b) Nominal partner (Quasi partner): A nominal partner neither contributes capital nor takes any active part in the management of the business. He simply lend his name to the firm.

Question 26.
Explain any two functions of Commercial Banks.
Answer:
Functions of Commercial Banks
I) Primary Functions
1) Acceptance of deposits : A commercial bank accepts following types of deposits. They are:
a) Current deposit
b) Savings deposit
c) Fixed deposit

2) Lending Loans and Advances : The second important function of a commercial bank is to grant loans and advances in the form of overdrafts, cash credits, discounting trade bills, term loans, etc. to customers.
a) Cash Credit
b) Bank Overdraft
c) Discounting of bill of exchange
d) Term Loans

II) Secondary Functions : The secondary functions of commercial banks are as under:
1) Agency Functions
a) Bank collects customers’ cheque drawn on other bank.
b) Payment of insurance premium, telephone charges, collection of dividend etc.

Question 27.
Who is a promoter? Write any two functions of promoter.
Answer:
(a) The person who undertakes to form a company is called promoter.
(b)

1. Identification of business opportunity: The first and foremost activity of a promoter is to identify a business opportunity.
2. Feasibility studies: Secondly the promoters undertake some feasibility studies to determine the profitability of the proposed activity.
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.

Question 28.
Write any four merits of equity shares.
Answer:
a) Equity shares are suitable for investors who are willing to assume risk.
b) Payment of dividend is not compulsory.
c) Equity capital serves as permanent capital.
d) Equity shares do not carry any charge on the assets of the company.

Question 29.
Differentiate International and Domestic Trade.
Answer:
29. Refer March 2022 Qn. 29

Answer any 4 questions from 30 to 35. Each carries 5 scores. (4 × 5 = 20)

Question 30.
What are the difference between Private and Public Company?
Answer:

Basis	Private	Public
a) Members:	Company	Company
b) Minimum number of directors:	Minimum -2 Maximum – 200	Minimum-7 Maximum – Unlimited
c) Minimum paid up capital:	Two	Three
d) Transfer of shares:	₹ 1 lakh	₹ 5 lakh
e) Prospectus:	Restriction on transfer	No restriction

Question 31.
WhatdoyoumeanbyMNC? Write any three features of it
Answer:
Global Enterprises (Multinational Companies) Global enterprises are huge industrial organisations which extend their operations in several countries. Their branches are called Majority Owned Foreign Affiliates (MOFA). They are characterised by their huge size, advanced technology and network of operations all over the world. Eg. Pepsi, Coca Cola, Cadbury, Sony, Suzuki etc.

Features of MNCs

1. Huge capital resources: Multinational companies have the ability to raise huge funds from different sources.
2. Foreign collaboration: Global enterprises usually enter into foreign collaborations with local firms in the host countries.
3. Advanced technology: Multinational companies can possess latest and advanced technology.

Question 32.
Explain outsourcing. Why outsourcing is needed?
Answer:
Business Process Outsourcing (BPO) Outsourcing is a management strategy by which an organisation contracts out its major non-core functions to specialised service providers. This helps the managers to concentrate on their core activities. Merits of outsourcing

1. It provides an opportunity to the organisation to concentrate on core areas.
2. It helps better utilisation of its resources and attain higher efficiency.
3. It helps the organisation to get an expert and specialised service at competitive prices.

Question 33.
Match the following.

a) Obey the law of the country	a) Air pollution
b) Respecting the religious sentiments	b) Water pollution
c) Emission of carbon monoxide	c) Legal responsibility
d) Dumping of waste to streams	d) Noise Pollution
e) Loss of hearing	e) Ethical responsibility

Answer:

a) Obey the law of the country	Legal responsibility
b) Respecting the religious sentiments	Ethical responsibility
c) Emission of carbon monoxide	Air pollution
d) Dumping of waste to streams	Water pollution
e) Loss of hearing	Noise pollution

Question 34.
What is Memorandum of Association? Name any four clauses of it.
Answer:
a) Memorandum of Association – It is the “char-ter”.or “magna carta” of the company. It defines the objects of the company and provides the frame work beyond which the company cannot operate. It lays down the relationship of the com¬pany with outside world. The Memorandum of Association must be signed by the proposed directors.

b) 1. The name clause: Under this clause the name of the company is mentioned. The pro¬posed name should not be identical with the name of another company. In case of a pub¬lic company the name should end with the word ‘Limited’ and in case of a private com¬pany the name should end with the word ‘Pri¬vate Limited’ The name must not suggest any connection a national hero. It should not in- elude the word ‘co-operative’.

2. Registered office clause or Situation Clause: This clause contains the name of- the state, in which the registered office of the company is proposed to be situated.

3. Objects clause: It defines the purpose for which the company is formed. A company is not legally entitled to undertake an activity, which is beyond the objects stated in this clause.

4. Liability clause: It states that the liability of members is limited to the face value of shares held by them or the amount guaranteed to be paid on winding up.

5. Capital clause: This clause specifies the maximum capital which the company will be authorised to raise through the issue of shares.

6. Association clause: In this clause, the signatories to the Memorandum of Association state their intention to be associated with the company and also give their consent to purchase qualification shares.

Question 35.
What are the problems faced by small business in India?
Answer:

1. Small scale industries find it difficult to get adequate finance from banks.
2. They are not able to get quality raw materials at reasonable prices.
3. They may face the problem of lack of managerial skills.
4. Small business firms cannot afford to pay higher salaries to the employees. So employee turnover is generally high.
5. Middlemen exploit them by paying low price and delayed payments.

Answer any 2 questions from 36 to 38. Each carries 8 scores.

Question 36.
What is Industry? Briefly explain the classification of Industry.
Answer:
1.1 Industry
Industry refers to economic activities, which are connected with conversion of resources into useful goods. Industries may be divided into 3 categories. They are Primary Industries, Secondary Industries and Tertiary Industries.

1.2 Primary industries : Primary industries are concerned with the extraction and production of natural resources and reproduction and development of living organisms, plants, etc. Primary industries’are divided into two.

• Extractive industries:- These industries extract products from natural resources. E.g. mining, farming, hunting, fishing etc.
• Genetic industries:- These industries are engaged in breeding of animals, birds and plants. E.g. dairy farming, paultry farming, floriculture, pisciculture etc.

1.3 Secondary industries : Secondary industries deal with materials extracted at the primary stage. Such goods may be used for consumption or for further production.
Secondary industries are classified into two. They are:

1. Manufacturing industries : Manufacturing industries engage in converting raw materials into finished goods. E.g. Conversion of timber into furniture, rubber into tyres etc. Manufacturing industries may be further divided into four categories. They are,
   • Analytical industry which analyses and separates different products from the same raw materials. E.g. Oil refinery.
   • Synthetical industry which combines various ingredients into a new product. E.g. cement.
   • Processing industry which involves successive stages for manufacturing finished products. Eg. Sugar and paper industry.
   • Assembling industry which assembles different component parts to make a new product. E.g. television, car, computer, etc.
2. Construction industries: These industries are involved in the construction of buildings, dams, bridges, roads etc.

1.4 Tertiary industries: These are concerned with providing support services to primary and secondary industries. Eg.  Transport, banking, insurance, warehousing, communication, advertising etc.

Question 37.
What is Partnership? Write any three merits and limications of partnership.
Answer:
Partnership The Indian Partnership Act, 1932 defines partnership as “the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.”

Features

1. Formation : Formation of a partnership is based , on agreement between partners.
2. Liability: The liability of partners is unlimited.
3. Risk bearing : The profit or loss shall be shared among the partners in agreed ratio.

Merits of Partnership

1. Easy formation and closure: A partnership firm can be formed and closed easily without any legal formalities.
2. Balanced decision making : In partnership, decisions are taken by all partners.
3. Division of labour: Division of labour is possible in partnership firm.

Limitations of Partnership

1. Unlimited liability : The liability of partners is unlimited.
2. Limited resources : There is a restriction on the number of partners. Hence capital contributed by them is also limited.
3. Possibility of conflicts : Conflicts among partners may affect the smooth working of the partnership business.

Question 38.
Explain any four principles of Insurance.
Answer:
Principles of Insurance

1. Utmost good faith (uberrimaefidie) : The insured must disclose all material facts about the subject matter to the insurer. Otherwise the insurer can cancel the contract.
2. Insurable interest: The insured must have an insurable interest in the subject matter of insurance.
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 whichever is less.
4. Subrogation : According to this principle, after the insured is compensated for the loss, the right of ownership of damaged property passes on to the insurer.