Kerala Plus One Business Studies Question Paper March 2023 with Answers

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

Kerala Plus One Business Studies Previous Year Question Paper March 2023

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

Question 1.
What is the reward of business activity?
(a) Salary
(b) Fees
(c) Profit
(d) Wages
Answer:
(c) Profit

Question 2.
The eldermost member of HUF business is known as _____
(a) Shareholder
(b) Karta
(c) Coparceners
(d) Partner
Answer:
(b) Karta

Question 3.
Identify the public enterprise where at least 51 % share held by Government.
(a) Departmental Undertaking
(b) PublicCorporations
(c) Government Company
(d) None of these
Answer:
(c) Government Company

Question 4.
Identify the bank which controls the operations of all commercial banks in the country.
(a) Co-operative Bank
(b) Central Bank
(c) Specialised Bank
(d) Nationalised Bank
Answer:
(b) Central Bank

Question 5.
Find the odd one out.
(a) Point of Sale
(b) Electronic Fund Transfer
(c) Digital Cash
(d) Cash Payment at the counter
Answer:
(d) Cash Payment at the counter

Question 6.
Identify the resources required for the successful implementation of E-business.
(a) Computer
(b) Trained workforce
(c) Website
(d) All of these
Answer:
(d) All of these

Question 7.
Emission of toxic gases leads pollution.
Answer:
Air pollution

Question 8.
Identify the internal sources of finance from the following:
(a) Retained earning
(b) Debenture
(c) Term loans
(d) Public deposits
Answer:
(a) Retained earning

Question 9.
The term VPP is associated with _____ business.
(a) Departmental store
(b) Chain store
(c) Super bazaar
(d) Mail order
Answer:
Mail order

Question 10.
Buying and selling of goods and service between two countries may be _____
(a) Domestic trade
(b) Foreign trade
(c) Home trade
(d) lnternal trade
Answer:
Foreign trade

Answer any 5 of the following questions from 11 to 16. Each carries 2 score. (5 × 2 = 10)

Question 11.
Briefly explain the following :
(a) Nomina! Partner
(b) Active Partner
Answer:
a) 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.
b) Active partner: A partner who contributes capital and takes active part in the business is called an active partner.

Question 12.
Write two differences between Traditional Business and E-business.
Answer:

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

Question 13.
Complete the following as per the hint given :
(a) Produce goods and service that society want and sell them at a profit
(b) Responsibility to operate within the laws of the country.
(c) Helping people of affected area of natural calamity.
Answer:
a) Economic Responsibility
b) Legal Responsibility
c) Discretionary Responsibility

Question 14.
Complete the diagram:
Answer:
a) Promotion
b) Incorporation

Question 15.
What is Factoring?
Answer:
Factoring: Factoring is a method of raising short-term finance for the busintess 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 16.
Mention any two kinds of itinerant traders.
Answer:

1. Peddlers and Hawkers: They carry the products on a bicycle, a hand cart, a cycle-rickshaw or on their heads, and move 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 17.
Write any three differences between Private company and Public company.
Answer:

Basis	Private Company	Public Company
a) Members	Minimum – 2 Maximum – 200	Minimum – 7 Maximum – Unlimited
b) Minimum paid up capital	Rs. 1 lakh	Rs. 5 lakh
c) Transfer of shares	Restriction on Transfer	No restriction
d) Name:	End with “Private Limited” or (P) Ltd.	End with “Limited” or Ltd.

Question 18.
Write three forms in which a public enterprise can be formed.
Answer:
Three forms of public enterprises are
a) Departmental undertaking
b) Statutory Corporations
c) Govt, companies

Question 19.
Complete the diagram with given hints:
Answer:

B2B	Business to Business	Giving order for raw material
C2C	Customer to Customer	Selling old books by one customer to another customer
B2C	Business to Customer	Selling goods to customers
Intra B	Transactions within the business	Transfer of goods from one branch to another branch

Question 20.
Write any three functions of promoter.
Answer:

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.
4. Fixing up signatories to the Memorandum of Association: Promoters have to decke about the members who wiLl be signing the Memorandum

Question 21.
Write short notes on:
(a) Fixed Capital Requirement
(b) Working Capital Requirement
Answer:

1. Fixed capital requirements: In order to start a business, funds are needed to purchase fixed assets like land and building, plant and machinery etc. This is called fixed capital requirement.
2. 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 22.
Write any three procedure for export trade.
Answer:
Export Procedure

1. Receipt of enquiry and sending quotations: The prospective buyer of a product sends an enquiry to different exporters.
2. The exporter sends a reply to the enquiry in the form of a quotation.
3. Receipt of order or indent: If the buyer is satisfied with the exporter, he places the order or indent for the goodi
4. Assessing importer’s creditworthiness and securing a guarantee for payments: After receipt of the indent, the exporter demand a letter of credit from the importer.

Answer any 4 of the following questions from 23 to 27. Each carries 4 score. (4 × 4 = 16)

Question 23.
Classify the following activiities into primary and secondary industry:
(a) Timbering
(b) Breeding of animals
(c) Construction of dam-
(d) Production of goods
(e) Mining
(f) Assembling of components
Answer:

Primary Industries	Secondary Industries
1. Timbering	1. Construction of dam
2. Breeding of animals	2. Production of goods
3. Mining	3. Assembling of components

Question 24.
Explain any four functions of Commercial Banks.
Answer:

• Acceptance of deposits : A commercial bank accepts following types of deposits. They are:
  1. Current deposit: This type of account is usu¬ally opened bybusinessmen.lt carries no inter¬est. There are no restrictions on number of deposits or withdrawals.
  2. Savings deposit : Savings accounts are for encouraging savings by individuals. Banks pay nominal rate of interest on these deposits.
  3. Fixed deposit: Fixed deposit accounts are term deposits with higher rate of interest. They cannot be withdrawn before the maturity period.
•  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.
  1. 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.
  2. Bank Overdraft: Overdraft is an arrangement where businessmen are allowed to withdraw over and above their deposits in the current account.
  3. Discounting of bill of exchange : Banks give money to its customers before the expiry of the bill after deducting a small amount of discount.
  4. Term Loans : These loans are provided by the banks to their customers for a fixed period.
  5. Secondary Functions : The secondary functions of commercial banks are as under:
     • Agency Functions
     • Bank collects customers’ cheque drawn on other bank.
     • Payment of insurance premium, telephone charges, collection of dividend etc.
     • Purchase and sale of shares and debentures.
  6. General utility services
     • Providing lockers for safe custody of jewellery and others valuables of customers.
     • Issuing letter of credit, pay orders, bank draft, credit cards, traveller’s cheques to customers.
     • Underwriting issues of shares and debentures

Question 25.
Explain any four clauses of Memorandum of Association.
Answer:

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.

Question 26.
What is Preference Share? Distinguish it from Equity Share.
Answer:
a) Preference Share: The capital raised by issue of preference shares is called preference share capital. The preference shareholders enjoy a preferential right over equity shareholders in two ways:
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 27.
Write any for differences of Foreign trade and Domestic trade.
Answer:
Refer Exam point guide 11.2

Answer any 3 of the following questions from 28 to 31. Each carries 5 score. (3 × 5 = 15)

Question 28.
Identify five hindrances in the process of exchange of goods and services and activities undertaken to remove these hindrances.
Answer:
Auxiliaries to Trade (Aids to trade) Activities which assist trade are called aids to trade or auxiliaries to trade.

1. Transportation: Transport facilitates movement of products from the place of production to the place of consumption.
2. Communication: Communication helps the producers, traders and consumers to exchange information with one another.
3. Banking: Banking helps business activities to overcome the problem of finance.
4. Insurance: The goods may be destroyed while in production process or in transit. Insurance provides protection in all such risks.
5. Warehousing: The goods should be stored till the time they are sold. This function is performed by warehouses.
6. Advertising: Advertising helps in providing information about goods and services.

Question 29.
What is MNC? Explain any four features of MNC.
Answer:
a) 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 30.
Write any five problems faced by small business units.
Answer:
Refer Exam point guide 9.7

Question 31.
Match the following :

Column – A	Column – B
Return on investment	Responsibility to government
Fair wages	Responsibility to suppliers
Payment of taxes	Responsibility to owners
Quality products	Responsibility to employees
Prompt payment	Responsibility to customers

Answer:

Column – A	Column – B
Return on investment	Responsibility to owners
Fair wages	Responsibility to employees
Payment of taxes	Responsibility to government
Quality products	Responsibility to customers
Prompt payment	Responsibility to suppliers

Answer any 2 of the following questions from 32 to 34. Each carries 8 scores. (2 × 8 = 16)

Question 32.
Briefly explain any four merits and four demerits of sole proprietorship.
Answer:
a) Sole Proprietorship: Sole proprietorship refers to a form of business organisation which is owned, managed and controlled by a single person.

b) 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.

c) Limitations of Sole Proprietorship

1. Limited capital: A sole trader can start business only on a small scale because of limited capital.
2. Lack of continuity : Death or illness of a proprietor affects the business and can lead to its closure.
3. Limited managerial ability : A sole proprietor may not be an expert in management.
4. Unlimited liability : The liability of a sole trader is unlimited.

Question 33.
(a) What is Insurance?
(b) Explain any six principles of insurance.
Answer:
a) Insurance is an agreement between two parties whereby one party undertakes, in exchange for a consideration, to pay the other party an agreed sum of money to compensate the loss, damage or injury caused as a result of some unforeseen events.

b)

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.
5. Causa proxima : When the loss is the result of two or more causes, the proximate cause for the loss alone will be considered by the insurance company for admitting the claim.
6. Contribution : In certain cases, the same subject matter is insured with one or more insurer. In case there is a loss, the insured is eligible to receive a claim only up to the amount of actual loss suffered by him.

Question 34.
“Everything under one roof” Identify the business organization mentioned here. Write any four features and three merits of it.
Answer:
Departmental Store
A departmental store is a large scale retail shop selling a wide variety of goods in different departments under one  anagement. Each department deals in separate line of goods like stationery, books, furniture, clothing etc. Consumers can purchase all goods from the departmental store. Features of a departmental store.

1. It is a large scale retail organisation.
2. A number of retail shops in the same building.
3. It offers a wide variety of products under one roof.
4. It is located at central places of the city.
5. The products are arranged in separate departments.
6. Sales, control and management are centralized,

Advantages

1. Central locations: As these stores are usually located at 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.
4. Mutual advertisement: All the departments are under one roof, so there is economy in advertising.
5. Risk distribution: If there is a loss in one department, it may be compensated from the profit of other departments.
6. Increased sales: Central location, mutual advertisement etc. will help a departmental store to increase its.sales.