Kerala Plus One Business Studies Question Paper June 2022 with Answers

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

Kerala Plus One Business Studies Previous Year Question Paper June 2022

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

Question 1.
Commerce includes trade and ……
(a) Industry
(b) Auxiliaries to trade
(c) Business
(d) Outsourcing
Answer:
(b) Auxiliaries to trade

Question 2.
A ……. partner is one who allows the use of his/ her name by a firm, but does not contribute to its capital.
(a) Active
(b) Sleeping
(c) Nominal
(d) Secret
Answer:
(c) Nominal

Question 3.
Find the odd one out.
(a) FCI
(b) RBI
(c) Indian Railway
(d) ONGC
Answer:
(c) Indian Railway

Question 4.
The warehouses which are licensed by the government to accept imported goods before the payment of tax and customs duty are called
(a) Bonded warehouses
(b) Private warehouses
(c) Government warehouses
(d) Public warehouses
Answer:
(a) Bonded warehouses

Question 5.
Carbon monoxide emitted by automobiles causes pollution.
(a) Water
(b) Land
(c) Noise
(d) Air
Answer:
(d) Air

Question 6.
Name any two documents to be submitted before Registrar of Companies for getting a company registered.
Answer:
Memorandum of Association, Articles of Association

Question 7.
_____ is an unsecured promissory note issued by a firm to raise funds for a short period varying from 90 days to 364 days.
(a) Equity share
(b) Trade credit
(c) Debentures
(d) Commercial paper
Answer:
Commercial Paper

Question 8.
Expand NABARD.
Answer:
National Bank for Agriculture and Rural Development

Question 9.
This type of retail shop operates on the principle of ‘ self service. Identify the type of retail shop referred here.
Answer:
Supermarket/Super Bazar

Question 10.
Name the document which serves as an evidence that the shipping company has accepted the goods for carrying to designated destination.
Answer:
Bill of Lading

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

Question 11.
List out any four multiple objectives of business.
Answer:
(a) Market standing
(b) Innovation
(c) Productivity
(d) Earning Profit

Question 12.
What is joint venture?
Answer:
When two business organisations join hands for mutual benefit by pooling their resources and expertise, it is a joint venture.

Question 13.
List out any four basic features of Business service.
Answer:
(a) Intangibility
(b) Inconsistency
(c) Inseparability
(d) Involvement
(e) No Inventory

Question 14.
Write any four payment mechanism available in online shopping.
Answer:
(a) Cash on Delivery
(b) Cheque
(c) Credit Card
(d) Debit Card
(e) Google Pay
(f) Phoen Pe

Question 15.
Narrate any two functions performed by a promoter.
Answer:
Functions of a Promoter

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.

Question 16.
Briefly explain trade credit as a short-term source of finance.
Answer:
Trade Credit: Trade credit is a shortterm source of financing. The credit extended by one trader to another for purchasing goods or services is known as trade credit. Trade credit facilitates the traders to purchase goods without immediate payment.

Question 17.
Name any four types of itinerant retailers.
Answer:
(a) Hawkers
(b) Peddlers
(c) Market Traders
(d) Street: Traders

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

Question 18.
State the meaning of Government Company. Write any two limitations of 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.

1. Government companies are suffering from, interference by political parties.
2. The government companies have to depend upon the government for deciding policy matters, resulting in delaying the decisions.

Question 19.
Explain social responsibility of business towards the following interest groups:
(a) Consumers
(b) Employers
(c) Shareholders or owners
Answer:
(a) Consumers – Provide quality goods at reasonable price.
(b) Employees – Provide job security and fair wages
(c) Shareholders – Provide adequate return on investment.

Question 20.
Eventhough lease financing is one of the important sources of finance, it suffers from some limitations. List out any three such limitations.
Answer:
Limitations

1. Lease agreement imposes some restrictions on the use of assets.
2. If the lease agreement is not renewed, it will af-fect the business.
3. The Lessee never becomes the owner of the as-set.

Question 21.
Bata Shoe Store is an example of this type of fixed shop large retailers. Identify and explain this type of retailer.
Answer:
(a) Multiple shops or chain store
(b) Chain Stores or Multiple Shops
Multiple shop is a system of branch shops operated under a centralised management and dealing in similar line of goods. Branches are located through- out the nation.

Question 22.
Briefly explain any three important foreign trade promotion measures and schemes.
Answer:
Foreign Trade Promotion Measures and Schemes

1. Duty drawback scheme: it refers to the refund of customs and excise duties paid on imported inputs used in the manufacture of export goods.
2. Export manufacturing under bond scheme: U nder 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.
3. Exemption from payment of GST : Goods meant for export purposes are not subject to GST. Income derived from export operations had been exempt from payment of income tax.

Question 23.
Write any three advantages of departmental store.
Answer:
Advantages

1. Central locations: As these stores are usually located &t central places they attract a large number of customers.
2. Convenience in buying: By offering large variety of goods under one roof, they provide great convenience to customers in buying almost all goods.
3. Attractive services: A departmental store aims at providing maximum services to the customers.

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

Question 24.
Briefly explain the nature of business risk.
Answer:
Nature of Business Risks

1. Business risks arise due to uncertainties.
2. It is an essential part of business.
3. Degree of risk depends mainly upon the nature and size of business.
4. Profit is the reward for risk taking.

Question 25.
Write any four merits of sole proprietorship.
Answer:
Merits of Sole Proprietorship

1. Easy formation : The formation of a sole proprietorship is very easy. There are no legal formalities to form and close a sole proprietorship.
2. Quick Decision : The sole trader can take quick decisions and prompt actions in all business matters.
3. Motivation : The entire profit of the sole trading business goes to the owner. It motivates him to work hard.
4. Secrecy : A sole trader is not bound to publish firm’s accounts.

Question 26.
Write a short note on different types of banks.
Answer:

1. Commercial Banks: Commercial Banks are banking institutions that accept deposits and grant loans and advances to their customers. There are two types of commercial banks, public . sector and private sector banks.
   • Public Sector Bank: Public sector banks are owned and managed by the Government. Eg. SBI, PNB, IOB etc:
   • Private Sector Bank: Private sector banks are owned and managed by private parties. Eg. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, etc.
2. Co-operative Banks: Co-operative Banks are governed by the provisions of State Co-operative Societies Act. They managed on the principles of co-operation, “self help and mutual help”.
3. Specialised Banks : Specialised banks are foreign exchange banks, industrial banks, development banks, export-import banks which provide financial aid to industries, joint venture projects and foreign trade.
4. Central Bank : The Central bank supervises, controls and regulates the activities of all the commercial banks of that country. It also acts as a government bank. It controls and co-ordinates currency and credit policies of any country. The Reserve Bank of India is the central bank of our country.

Question 27.
Match the following:

A	B
(a) Memorandum of – Association	Invitation to public by a company to subscribe its shares or debentures
(b) Articles of Association	Birth Certificate of a company
(c) Prospectus	Define objectives of a company
(d) Certificate of Incorporation	Rules regarding internal management

Answer:

A	B
(a) Memorandum of – Association	Invitation to public by a company to subscribe its shares or debentures
(b) Articles of Association	Birth Certificate of a company
(c) Prospectus	Define objectives of a company
(d) Certificate of Incorporation	Rules regarding internal management

Question 28.
State any two merits and demerits of debentures.
Answer:
Merits

1. Debenture holder do not have voting right
2. Interest on Debentures is a tax deductable expense
3. It does not dilute control of equity shareholders on management

Limitations

1. It is not suitable for companies with unstable future earnings.
2. The company has to mortgage its assets to issue debentures.
3. Debenture holders do not enjoy any voting rights.

Question 29.
Write any four differences between Domestic 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 4 questions from 30 to 35. Each carries 5 scores. (4 × 5 = 20)

Question 30.
On the basis of nature of operation, co-operative societies are of different types. Describe any five types of co-operative society.
Answer:
Types of Co-operative Societies

1. Consumer’s co-operative societies : These are formed to protect the interests of consum-ers. The society aims at eliminating middlemen. It purchases goods in bulk directly from the producers and sells goods to the members at the lowest priced
2. Producer’s co-operative societies : These societies are set up to protect the interest of small producers. It supplies raw materials, equipment and other inputs to the members.
3. Marketing co-operative societies : Such societies are established to help small producers in selling their products. It collects the output of members and sells them at the best possible price. Profits are distributed to members.
4. Farmer’s co-operative societies : These societies are established to protect the interests of farmers. Such societies provide better quality seeds, fertilisers, machinery and other modern techniques for use in the cultivation of crops.
5. Credit co-operative societies : Credit co-operative societies are established for providing easy credit to the members, at low rates of interest.

Question 31.
State the features of Global enterprises.
Answer:

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.
4. Product innovation: Multinational companies are able to conduct researches so that they can develop new products.
5. Marketing strategies: They use aggressive marketing strategies in order to increase their sales in a short period.

Question 32.
Write any five differences between traditional business and e-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 33.
Describe the various basic elements of business I ethics.
Answer:
Elements of Business Ethics

1. Top management commitment: The higher level managers must give continuous leadership for developing the moral values of the organisation.
2. Publication of a Code: ‘Code’ refers to a formal written document of the principles & values. It may cover the areas of fundamental honesty and adherence to laws, product safety and quality, etc.
3. Establishment of Compliance Mechanism: A suitable mechanism should be developed to comply with the ethical standards of the enterprise.
4. Employees Involvement: To make ethical business a reality, employees at all levels must be involved.
5. Measuring Results: Ethical results must be verified and audited that how far work is being carried according to ethical standards.

Question 34.
Memorandum of Association of a company contains different clauses. List out and explain such clauses.
Answer:
Contents of Memorandum of Association

1. 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.
2. 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.
3. 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.
4. Capital clause: This clause specifies the maximum capital which the company will be authorised to raise through the issue of shares.
5. 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 major problems faced by small scale industries in India?
Answer:
Problems of small business Small businesses are faced with the following problems:

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.
Explain the types of Industries with the help of a chart.
Answer:

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:

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. telesion, car, computer, etc.
2. Construction industries : These industries 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 37.
Explain the features of Joint Stock Company.
Answer:
Features

1. Incorporated association: A company is an incorporated association. i.e. Registered and governed under the Indian Companies Act, 2013.
2. Separate legal entity: Company has a separate legal entity apart from its members.
3. Formation : The formation of a company is a time consuming and complicated process.
4. Perpetual succession: Its existence not affected by death, insolvency or insanity of shareholders.
5. Control: The management and control of the company is in the hands of Board of Directors who are elected by the shareholders.
6. LIability: The liability of the shareholders is limited.
7. Common seal : The Company has a common seal.
8. Transferability of shares: Shares of a joint stock company are freely transferable.

Question 38.
Explain in detail of any four principles of insurance with suitable examples.
Answer:
Principles of Insurance1.

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.