Kerala Plus One Business Studies Board Model Paper 2023 with Answers

Teachers recommend solving Kerala Syllabus Plus One Business Studies Previous Year Question Papers and Answers Pdf Board Model Paper 2023 to improve time management during exams.

Kerala Plus One Business Studies Board Model Paper 2023 with Answers

I Answer any eight of the following questions from 1-10. Each carriers one scores. (8 × 1 = 8)

Question 1.
Transport provides utility to business.
a. Time
b. Place
c. Risk
d. None of these
Answer:
b. Place

Question 2.
Buying and selling of goods and services between nations are called
a. Internal trade
b. Island trade
c. International trade
d. wholesale trade
Answer:
c. International trade

Question 3.
The traders who do not have a fixed place of business is
a. Itinerant retailers b. Fixed shop relations c. Semi-fixed shoppers d. Non of these
Answer:
Itinerant retailers

Question 4.
Fishing belonging to ______ industry.
a. Extractive
b. Genetic
c. Manufacturing
d. Constructive
Answer:
Extractive

Question 5.
The member of an H.U.F. business is called
a. Member
b. Partner
c. Co-parcener
d. Shareholder
Answer:
Co-parcener

Question 6.
Indian Railway is an example of _____ from of public enterprise.
a. Statutory corporation
b. Departmental undertaking
c. Government company
d. Private company
Answer:
Departmental undertaking

Question 7.
The person who is taking an insurance policy is called
a. Insurer
b. Insured
c. Insurance company
d. Insurance policy
Answer:
Insured

Question 8.
Which among the following is the document which acknowledges the debt of a company?
a. Debenture
b. Share
c. Stock
d. Mutual Fund
Answer:
Debenture

Question 9.
Purchase of mobile phone through online by a customer is an example of model of e-commerce.
a. C2C
b. B2C
c. Intra B
d. B2G
Answer:
B2C

Question 10.
Providing scholarship to students by a bank belongs to _______ kind of social responsibility of
a. Ethical
b. Legal
c. Discretionary
d. Economics
Answer:
Discretionary

II Answer any 5 questions from 11-16. Each carries 2 scores. (5 × 2 = 10)

Question 11.
List out any two features of a joint stock company.
Answer:
1. Separate Legal Entity : Company has a separate legal entity apart from its members.
2. Formation : The formation of a company is a time consuming and complicated process.
3. Perpetual succession: Its existence not affected by death, insolvency or insanity of shareholders.

Question 12.
What do you mean by social responsibility of business?
Answer:
Social responsibility of business refers to its obhgation to take those decisions and perform those actions which are desirable in terms of the objectives and values of our society. Social responsibility involves an element of voluntary action on the part of business people for the benefit of society.

Question 13.
Who is a promoter?
Answer:
The person who undertakes to form a company is called promoter.

Question 14.
Briefly explain the term 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 15.
Suggest any two products suitable for vending machines.
Answer:
(a) Chocolates
(b) Soft drinks packets

Question 16.
List any two benefits of e-business.
Answer:

1. e-business is relatively easy to start and requires lower capital.
2. Customers can buy goods at any time.
3. Business transactions can be made easily and speedily.

III Answer any 5 questions from 17-22. Each carriers 3 scores. (5 × 3 = 15)

Question 17.
What is partnership deed? List any four centents of it.
Answer:
Partnership of deed
a. The written agreement which specifies the terms and conditions of partnership i called the partnership deed.
b. Contents of deed Name of firm

1. Name of firm
2. Nature of business and location of business
3. Duration of business
4. Investment made by each partner
5. Profit sharing ratio

Question 18.
Briefly explain any three features of a departmental undertaking.
Answer:
Features of lepartrnental Undertaking

1. The enterprise is financed by the Government.
2. The enterprise is subject to audit control.
3. It is subject to the direct control of the ministry.
4. Its employees are govt. employees.

Question 19.
Write any three 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 20.
Briefly explain the stages in the formation of public company.
Answer:
The steps involved in the formation of a company are:

1. Promotion
2. Incorporation 25
3. Capital subscription
4. Commencement of business

Question 21.
Write a short note on ‘factoring’
Answer:
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.

Question 22.
What are export processing zones?
Answer:
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 kcense.

Answer any 4 questions from 23-27, Each carries 4 scores. (4 × 4 = 16)

Question 23.
Briefly describe 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 theinsurer can cancel the contract.
2. 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 insu red whichever is less.
4. SubrogatIon: According to this prindple, after the insured is compensated for the loss, the right of ownership of damaged property passes on to the insurer.

Question 24.
Write any four differences between Memorandum of Association and Articles of Association.
Answer:

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.

Question 25.
What is a share ? What is the difference between equity share and preference share?
Answer:
The capital of a company is divided into smaller units called share. Those who subscribe the shares of a company are known as shareholders’. Two types shares may be issued by a company to raise capital.
They are:
a) Equity Shares
b) Preference Shares

Question 26.
List any four differences between domestic business and international business.
Answer:

Equity Shares	Preference Shares
Equity compulsory to issue shares.	Not compulsory to issue preference shares
Rate of dividend varies	Rate of dividend is fixed
Face value is lower	Face value is higher
No priority in dividend and repayment of capital	Priority in dividend and repayment of capital
Cannot be redeemed	Can be redeemed
Risk is high	Risk is low
Voting rights	No voting rights
Participate in the management	Not participate in the management

Question 27.
Briefly explain any four features of a business.
Answer:

1. An economic activity : Business is an economic activity with the object of earning profit.
2. Production of goods and services: It includes the activities concerned with the production or purchase of goods and services.
3. Sale or exchange of goods and services : There should be sale or exchange of goods and services for the satisfaction of human needs.
4. Dealings in goods and services on a regular basis : Business involves dealings in goods and services on a regular basis.

V. Answer any 3 questions from 28-31. Each carriers 5 scores. (3 × 5 = 15)

Question 28.
Match the following :

A	B
a. Hindrance of finance	Transport
b. Hindrance of place	Waterhousing
c. Hindrance of time	Insurance
d. Hindrance of risk	Advertising
e. Hindrance of knowldege	Banking

Answer:

A	B
a. Hindrance of finance	Banking
b. Hindrance of place	Transport
c. Hindrance of time	Warehousing
d. Hindrance of risk	Insurance
e. Hindrance of knowldege	Advertising

Question 29.
What are global enterprises ? Describe any four features of them.
Answer:
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.

1. Huge capital resources: Multinational companies have the ability to raise huge funds from different soirees.
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.
4. Product innovation: Multinational companies are able to conduct researches so that they can develop new products.

Question 30.
Briefly explain any five problems faced by small business in India.
Answer:

1. Srpall 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.

Question 31.
Match the following :

A	B
a. Responsibility towards owner	Fair wages
b. Responsibility towards customer	Fair return
c. Responsibility towards supplier	Quality products
d. Responsibility towards employees	Prompt payment
e. Responsibility towards government	Payment of tax

Answer:

A	B
a. Responsibility towards owner	Fair return
b. Responsibility towards customer	Quality products
c. Responsibility towards supplier	Prompt payment
d. Responsibility towards employees	Fair wages
e. Responsibility towards government	Payment of tax

Answer any 2 questions from 32-34. Each carriers 8 scores. (2 × 8 = 16)

Question 32.
Describe the various functions of Commercial Banks in India.
Answer:
Functions of Commercial Banks

I) Primary Functions

1. Acceptance of deposits : A commercial bank accepts following types of deposits. They are:
   • Current deposit: This type of account is usually opened by businessmen. It carries no interest. There are no restrictions on number of deposits or withdrawals.
   • Savings deposit: Savings accounts are for encouraging savings by individuals. Banks pay nominal rate of interest on these deposits.
   • Fixed deposit: Fixed deposit accounts are term deposits with higher rate of interest. They cannot be withdrawn before the maturity period.
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,
   • Cash Credit: The bank opens an account in the name of the borrower and allows him to withdraw the money up to the sanctioned limit.
   • Bank Overdraft : Overdraft is an .. arrangement where businessmen are allowed to withdraw over and above their deposits in the current account.
   • Discounting of bill of exchange: Banks give money to its customers before the expiry of the bill after deducting a small amount of discount.
   • Term Loans : These loans are provided by the banks to their customers for a fixed period.

II) Secondary Functions : The secondary functions of commercial banks are as under:

• 1) Agency Functions
  1. Bank collects customers’ cheque drawn on other bank.
  2. Payment of insurance premium, telephone charges, collection of dividend etc.
  3. Purchase and sale of shares and debentures
  4. Acting as trustees or executors
  5. Providing credit information
• General utility services
  1. Providing lockers for safe custody of jewellery and others valuables of customers.
  2. issuing letter of credit, pay orders, bank draft, credit cards, traveller’s cheques to customers.
  3. Underwriting issues of shares and debentures
  4. Providing foreign exchange to importers and traveller’s going abroad.

Question 33.
What is sole proprietorship? Explain any six features of it.
Answer:
Sole proprietorship refers to a form of business organisation which is owned, managed and controlled by a single person.
Features

1. The sole trader is the single owner and manager of the business.
2. The formation of a sole proprietorship is very easy.
3. The liability of a sole trader is unlimited.
4. The entire profit of the business goes to the sole proprietor.
5. The sole trader can take quick decisions.
6. A sole trading concern has no legal existence separate from its owner.

Question 34.
Describe the following.
a. Consumer co-op-stores
b. Super markets
c. Mail order houses
d. Departmental stores.
Answer:
a. Consumers co-operative societies : These are formed to protect the interests of consumers. The society aims at eliminating middlemen. It purchases goods in bulk directly from the producers and sells goods to the members at the lowest price.

b. Super Markets I 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

1. They are located at the centre of a town.
2. They sell goods on cash basis only.
3. They deal wide variety of goods.
4. There is no salesman to help consumers

c. In mail order business, the business transactions are done through post or mail. Under this system orders for goods, delivery of goods and payment is made through VPP (Value Payable Post). Under this arrangement, the goods are delivered to the customers only on making full payment for the same. There is no direct personal contact between the buyers and the sellers.

d. Departmental Stores A departmental store is a large scale retail shop selling a wide variety of goods ¡n different departments under one management. Each department deals in separate line of goods like stationery, books, furniture, clothing etc. Consumers can purchase all goods from the departmental store.