Teachers recommend solving Kerala Syllabus Plus One Business Studies Previous Year Question Papers and Answers Pdf Board Model Paper 2021 to improve time management during exams.
Kerala Plus One Business Studies Board Model Paper 2021 with Answers
Answer the following questions from 1 to 8. Each carries 1 score. (8 × 1 = 8)
Question 1.
Which among the following is an aids to trade?
(a) Banking
(b) Advertising
(c) Insurance
(d) All of these
Answer:
All of these
Question 2.
Transportation removes the hindrance of in trading activities.
(a) Place
(b) Time
(c) Risk
(d) Finance
Answer:
Place
Question 3.
Purchase of a product through the websites of flipkart or Amazon is an example of _______ mode of transaction.
(a) B2G
(b) C2C
(c) B2B
(d) B2C
Answer:
B2C
Question 4.
‘Giving Scholarship to students’ is an example of kind of social responsibility of business.
(a) Economic
(b) Discretionary
(c) Legal
(d) Ethica
Answer:
Discretionary
Question 5.
Debenture represents
(a) fixed capital of the company
(b) debt capital of the company
(c) owned capital of the company
(d) fluctuating capital of the company
Answer:
Debt capital of the company
Question 6.
Name any one institution constituted for supporting small business in India.
Answer:
SIDBI
Question 7.
Self service is the feature of
(a) Super market
(b) Multiple shop
(c) Vending machine
(d) None of these
Answer:
Super market
Question 8.
Which of the following is not a part of export documents?
(a) Commercial Invoice
(b) Certificate of origin
(c) Bill of entry
(d) Mates receipt
Answer:
Bill of Entry
II. Answer any 3 questions from 9 to 14. Each carries 2 scores. (3 × 2 = 6)
Question 9.
Describe the role of Profit in business in one or two sentences.
Answer:
a) Profit is the reward for taking risks.
b) Profit is necessary to expand or diversify the business operations.
Question 10.
List any two features of co-operative society.
Answer:
- Legal status : Registration of a co-operative society is compulsory.
- Limited liability: The liability of the members of a co-operative society is limited.
Question 11.
Describe‘Certificate of Incorporation’.
Answer:
Certificate of Incorporation is the conclusive evidence of the legal existence of the company. A private company can commence its business after receiving Certificate of Incorporation. The certificate of incorporation is the birth certificate of the company.
Question 12.
Explain any two Preferential rights enjoyed by Preference shareholders.
Answer:
a) The right to get a fixed rate of dividend.
b) The right to claim repayment of capital in the event of winding up of the company.
Question 13.
State any two features of a Cottage Industry.
Answer:
1) These are organised by individuals, with private resources.
2) Normally use family labour and locally available talent.
3) The equipment used is simple.
4) Capital investment is small.
Question 14.
What do you mean by ‘Bill of lading’?
Answer:
Bill of lading : It is a document issued by the shipping company after the cargo is loaded on the ship. It is an acknowledgement of goods by the shipping company. It is a document which shows the title to the goods.
III. Answer any 3 questions from 15 to 20. Each carries 3 scores. (3 × 3 = 9)
Question 15.
Write any three features of a private company.
Answer:
a) restricts the right of members to transfer its shares
b) has a minimum of 2 and a maximum of 200 members.
c) does not invite public to subscribe to its share capital.
Question 16.
State the merits of a Government Company.
Answer:
- It is registered under the Companies Act, 2013.
- It has a separate legal entity.
- It is regulated by the provisions of the Companies Act.
Question 17.
List out the three stages in the formation of a Public Company.
Answer:
a) Promotion – Promotion is the first stage in the formation of a company. The identification of business opportunities, analysis of its prospects and initiating steps to form a joint stock company is called promotion.
b) Incorporation:- A company comes into existence only when it is registered with the Registrar of Companies.
c) Capital Subscription A public company can raise funds from the public by issuing shares and Debentures. For this it has to issue prospectus.
Question 18.
Briefly describe the concept of‘Retained earnings’.
Answer:
A company generally does not distribute all its earnings amongst the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as retained earnings. It is a source of internal financing or self financing or ‘ploughing back of profits’.
Question 19.
Briefly explain any three problems faced by small business in India.
Answer:
- Small scale industries find it difficult to get adequate finance from banks.
- They are not able to get quality raw materials at reasonable prices.
- They may face the problem of lack of managerial skills.
- Small business organization uses out dated technology to produce products.
Question 20.
List any three merits of International business in our country.
Answer:
- Earning of foreign exchange : It helps a country to earn foreign exchange which can be used for importing capital goods.
- More efficient use of resources: External trade enables a country to utilise the available resources in the best possible manner.
- Improving growth prospects and employment potentials: External trade helps to accelerate the economic growth and employment opportunities of a country.
- Increased standard of living : Foreign trade helps in raising the standard of living of a country.
IV. Answer any 4 questions from 21 to 30. Each carries 4 scores. (4 × 4 = 16)
Question 21.
Fill in the blanks as per hint given below:
| (a) Paper making | Processing Industry |
| (b) Oil refinery | |
| (c) Cement | |
| (d) Sugar Industry | |
| (e) Car Industry |
Answer:
| (a) Paper making | Processing |
| (b) Oil refinery | Analytical Industry |
| (c) Cement | Synthetical Industry |
| (d) Sugar Industry | Processing Industry |
| (e) Car Industry | Assembling Industry |
Question 22.
Differentiate between Private Company and Public Company.
Answer:
| Basis | Private Company | Public Company |
| a) Members: | Minimum – 2 Maximum – 200 | Minimum – 7 Maximum – Unlimited |
| b) Minimum number of directors: | Two | Three |
| c) Minimum paid up capital: | ₹ 1 lakh | ₹ 5 lakh |
| d) Transfer of shares: | Restriction on transfer | No restriction, |
| e) Prospectus: | Need not issue prospectus | Can issue prospectus |
| a) Starting of business: | After getting Certificate of Incorporation | After getting Certificate of Commencement of Business |
| b) Name: | End with “Private Limited” or (P) Ltd. | End with “Limited” or Ltd. |
| c) Minimum subscription: | Need not have to obtain minimum subscription | Need minimum’ subscription |
Question 23.
List out four benefits of Joint venture business.
Answer:
- Since the local partner also contributes to the equity capital, the international firm has less financial burden!
- It helps to execute large projects requiring huge capital outlays and manpower.
- The foreign business firm benefits from local partner’s knowledge of the host countries.
- The foreign business firm shares cost and risks with local partner.
Question 24.
Write short notes on the following:
(a) Bonded Warehouse
(b) Public Warehouse
Answer:
a) Bonded warehouses: These warehouses are
used to keep the imported goods before the payment of import duties.
b) Public warehouses: They are owned by some agencies, offer storage facilities to the public after charging certain fees. They are also known as Duty paid warehouses.
Question 25.
State any four 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 or house or while travelling.
c) It creates a sense of financial discipline.
d) Greater customer satisfaction by offering unlimited access to the bank.
Question 26.
Briefly explain the need for ‘Outsourcing’ services.
Answer:
- It provides an opportdhityto the organisation to concentrate on core areas.
- It helps better utilisation of its resources and attain higher efficiency.
- It helps the organisation to get an expert and specialised service at competitive prices.
- It facilitates inter-organisational knowledge sharing and collaborative learning.
Question 27.
Write, how business is socially responsible to the following interest groups:
(a) Owner
(b) Customers
(c) Employees
(d) Government
Answer:
a) Responsibility towards share holders or owners:
a) To provide a fair return on the investment.
b) To-provide accurate information on the financial position of the firm.
b) Responsibility towards consumers
a) Supply quality goods and services at reasonable prices.
b) Avoid unfair trade practices.
c) Responsibility towards the workers:
a) To provide fair wages
b) To provide good working conditions.
d) Responsibility towards Government :
a) Respect the Laws of the country
b) Pay taxes regularly and honestly.
Question 28.
Explain any four functions of a Promoter?
Answer:
- Identification of business opportunity: The first and foremost activity of a promoter is to identify a business opportunity.
- Feasibility studies: Secondly the promoters undertake some feasibility studies to determine the profitability of the proposed activity.
- 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.
- 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.
Question 29.
Write the difference between shares and Debentures.
Answer:
| Shares | Debentures |
| 1. Shareholders are the owners of the company | Debenture holders are the creditors of the company |
| 2. Shareholders get dividends | Debenture holders get interest |
| 3. Shareholders have voting right | Debenture holders have no voting right |
| 4. No security is required to issue shares | Generally debentures are secured |
| 5. Shares are not redeemable | Debentures are redeemable |
| 6. It is owner’s fund | It is borrowed fund |
Question 30.
State any four difference between Domestic business and International business.
Answer:
| Domestic Business | International Business |
| Buyers and sellers are from the same country | Buyers and sellers are from different countries |
| Various middlemen are usually citizens of the same country | Various middlemen are from different nations |
| The factors of production move freely within the country | There are restrictions on free mobility of factors of production across countries |
| Markets are homogeneous in – nature | International markets lack homogeneity |
Answer any 5 questions from 31 to 40. Each carries 5 scores. (5 × 5 = 25)
Question 31.
Briefly explain different types of Industries with
Answer:
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. 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.
2. 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:
- 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 intp 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.
- Construction industries: These industhes are involved in the construction of buildings, dams, bridges, roads etc.
3. Tertiary industries: These are concerned with providing support services to primary and secondary industries. Eg. Transport, banking, insurance, warehousing, communication, advertising etc.
Question 32.
What is Partnership? Discuss the merits and demerits 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 anyone of them acting for all.”
Merits of Partnership
- Easy formation and closure: A partnership firm can be formed and closed easily without any legal formalities.
- Balanced decision making : In partnership, decisions are taken by all partners.
Limitations of Partnership
- Unlimited liability : The liability of partners is unlimited.
- Limited resources: There is a restriction on the number of partners. Hence capital contributed by them is also limited.
Question 33.
State the features of Sole Proprietorship business.
Answer:
Features
- The sole trader is the single owner and manager of the business.
- The formation of a sole proprietorship is very easy.
- The liability of a sole trader is unlimited.
- The entire profit of the business goes to the sole proprietor.
- The sole trader can take quick decisions.
Question 34.
What are global enterprises? Explain 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.
Question 35.
Match the following:
Answer:
| a) Hindrance of place | Transport |
| b) Hindrance of Risk | Insurance |
| c) Hindrance of Finance | Banking |
| d) Hindrance of knowledge | Advertising |
| e) Hindrance of Time | Warehousing |
Question 36.
Write any five differences between e-business and traditional business.
Answer:
Differences between Traditional business and e-business
| Traditional Business | e-business |
| 1. Its formation is difficult | Its formation is easy |
| 2. Investment is very high | Investment is low |
| 3. Physical presence is required | Physical presence is not required |
| 4. Location is important | Location is not important |
| 5. Operating cost is high | Operating cost is low |
Question 37.
Explain the need of Pollution control.
Answer:
- Reduction of health hazard: Pollution control measures reduce health hazards and support a healthy life on earth.
- Reduced Risk of Liability: Health control measures helps to reduce the risk of liability of paying compensation to the affected people.
- Cost Saving: An effective pollution control programme fs needed to save costs of operating business.
- Improved Public Image: A firm that adopts pollution control measures enjoys a good reputation as a socially responsible enterprise.
- Other social benefits: Pollution control results in many other benefits like clearer visibility, cleaner buildings, better quality of life, and the availability of natural products in a purer form etc.
Question 38.
Explain the following with a suitable example:
(a) Ethical responsibility of business
(b) Legal responsibility of business
Answer:
- Ethical responsibility: This includes the behavior of the firm that is expected by the society but not included in Law.
- Legal responsibility: Every business has a responsibility to operate within the Laws of the land.
Question 39.
Memorandum of Association and Articles of Association are two important documents to be prepared at the time of formation of a com pany. Write any five difference between them .
Answer:
Difference Between Memorandum of Association and Articles of Association
| Memorandum of Association | Articles of Association |
| It defines the object of the company | It defines rules of Internal management of the company |
| It is the main document of the company | It is a subsidiary document of the company. |
| It defines the relationship of the company with outsiders | It defines the relationship of the company with members. |
| Filing of Memorandum is compulsory | Filing of Articles is not compulsory for public company |
| Alteration of Memorandum is very difficult | It can be altered by passing a special resolution. |
Question 40.
Briefly explain three merits and two demerits of multiple shop.
Answer:
a) Merits
- It enjoys economies of bulk purchase.
- There is no risk of bad’debts because all sales are on cash basis.
- The advertisements for all branches are done by the head office. So there is economy in advertisement.
b) Demerits
- The multiple shops deal only in a limited range of products. So consumers have very little choice.
- They will not provide any credit facilities to consumers.
- There is lack of personal touch between the company and consumers.
VI. Answer any 2 questions from 41 to 44. Each carries 8 scores. (2 × 8 = 16)
Question 41.
What is business? Explain any six characteristics of business.
Answer:
Business
It is an economic activity involving production, pur-chase and sale of goods and services with the main object of earning profit.
Characteristics of Business Activities:
- An’ economic activity: Business is an economic activity with the object of earning profit.
- Production of goods and services: It includes the activities concerned with the production or purchase of goods and services.
- Sale or exchange of goods and services : There should be sale or exchange of goods and services for the satisfaction of human needs.
- Dealings in goods and services on a regular basis : Business involves dealings in goods and services on a regular basis.
- Profit earning : The main objective of business is to earn profit.
- Uncertainty of return : Business is not certain as what amount of profit will be earned in a given period.
- Element of risk : Business involves possibility of loss due to changes in consumer taste, changes in method of production, fire, theft, strike etc.
Question 42.
‘A Company is an artificial person created by law.’ Based on the above statement explain any four features of a Joint Stock Company.
Answer:
Features
- Incorporated association: A company is an incorporated association, i.e. Registered and governed under the Indian Companies Act, 2013.
- Separate legal entity: Company has a separate legal entity apart from its members.
- Formation : The formation of a company is a time consuming and complicated process.
- Perpetual succession: Its existence not affected by death, insolvency or insanity of shareholders.
- Control: The management and control of the company is in the hands of Board of Directors who are elected by the shareholders.
Question 43.
Explain any four Principles of Insurance.
Answer:
Principles of Insurance
- 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.
- Insurable interest: The insured must have an insurable interest in the subject matter of insurance.
- 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.
- 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.
Question 44.
Absence of Salesman is one most important features of large scale fixed shop.
(a) Identify the type of shop mentioned here.
(b) Explain any six features of it.
Answer:
a) Supermarket/Super bazaar b) Super Markets / Super Bazar Super market is a large scale retail organisation selling a wide variety of consumer goods. The important feature of super market is the absence of salesman to help consumers in selecting goods. Hence super market is also called ‘ Self Service Store’.
Features of Super Market
- They are located at the centre of a town.
- They sell goods on cash basis only.
- They deal wide variety of goods.
- There is no salesman to help consumers