Kerala Plus One Business Studies Question Paper September 2021 with Answers

Teachers recommend solving Kerala Syllabus Plus One Business Studies  Previous Year Question Papers and Answers Pdf September 2021 to improve time management during exams.

Kerala Plus One Business Studies Previous Year Question Paper September 2021

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

Question 1.
Warehousing provides utility.
(a) Time
(b) Place
(c) Risk
(d) Finance
Answer:
(a) Time

Question 2.
Fill in the blanks as per hint given.
(a) State Bank of india – Public sector Bank.
(b) HDFC Bank
Answer:
Private Sector

Question 3.
Respecting religious sentiments of society is an example of kind of social responsibility of business.
(a) Ethical
(b) Legal
(c) Economic
(d) Discriminating
Answer:
Ethical

Question 4.
List any ‘one’ method of payment mechanism in online transactions.
Answer:
Cheque, COD etc.

Question 5.
Identify the document which acknowledge debt of a company.
(a) Share
(b) Debenture
(c) Stock
(d) All of these
Answer:
Debenture

Question 6.
Name any one institution for supporting small business in India.
Answer:
NABARD, DIC etc.

Question 7.
Trade between two persons belong to the same country is called
(a) External trade
(b) Internal trade
(c) Foreign trade
(d) International trade
Answer:
Internal Trade

Question 8.
Which among the following is a mode of entry into international business?
(a) Contract manufacturing
(b) Joint ventures
(c) Wholly owned subsidiaries
(d) All of these
Answer:
All of these

II. Answer any 3 questions from 9 to 14. Each carries 2 scores. (3 × 2 = 6)

Question 9.
Mohan, a teacher in Ernakuiam bought a carfor Rs. 5 lakhs. After two months he sold it to Raju for Rs.6 lakhs. Is it a business activity? Why?
Answer:

1. No. It is not a business activity.
2. Regularity in dealings is required in a business.

Question 10.
List any two privileges of a Private Company.
Answer:
Privilages of a private company are

1. Minimum number of members is 2.
2. No need to issue prospectus.
3. No need to keep index of members.

Question 11.
List out the stages in the formation of a Private Company.
Answer:
Stages of formation of a company are
a. Promotion
b. Incorporation

Question 12.
What do you mean by working capital?
Answer:
Working capital means amount of capital invested in current assets.

Question 13.
Briefly explain any two problems faced by small business in India.
Answer:
Problems of small businesses are

1. Lack of adequate/inance
2. Lack of raw materials
3. Poor managerial skill
4. Low quality of products

Question 14.
Suggest any two products suitable for vending machines.
Answer:
Vending machine products are

1. Newspaper
2. Soft drinks
3. Sanitary Napkins
4. Chocolates

III. Answer any 3 questions from 15 to 20. Each carries 3 scores.(3 × 3 = 9)

Question 15.
Write any three feature’s of a Co-op. society.
Answer:
Features of Co-operative Societies are:

1. Voluntary membership : The membership of a co-operative society is voluntary.
2. Legal status : Registration of a co-operative society is compulsory.
3. Limited liability: The liability of the members of a co-operative society is limited.
4. Service motive: “Self help through mutual help” or “each for all and all for each” is the foundation of co-operative society.

Question 16.
List out any ‘three’ merits of a Statutory Corporation.
Answer:

1. Statutory corporations are set up under an Act of Parliament.
2. It is wholly owned by the Central Govt.
3. It has a separate legal entity.
4. It is usually independently financed.

Question 17.
Who is a promoter? List out any two functions of him.
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. 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.
4. Appointment of professional: Promoters appoint merchant bankers, auditors etc. to assist them in the preparation of necessary documents.

Question 18.
Describe the term ‘retained earnings’.
Answer:
a) Retained Earnings
b) Retained Earnings (Ploughing Back of Profit): 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.
Write ashort note on ‘District Industries Centre.
Answer:
The District Industries Centers (DICs): DICs were established in May 1978. District Industries Centers is the institution at the district level which provides all the services and support facilities to the entrepreneurs for setting up small and village industries. Identification of suitable schemes, preparation of feasibility reports, arranging for credit etc, are the main activities undertaken by these centres.

Question 20.
Differentiate between licensing and franchising.
Answer:
a) Licensing
Licensing is a contractual arrangement in which one firm grants access to its technology to another firm in a foreign country. The firm that grants permission is known as licensor and the firm that receives the rights is called the licensee,
b) Franchising
Franchising is similar to licensing. But it is used in connection with the provision of services. The parent * company is called the franchiser and the other party to the agreement is called franchisee.

IV. Answer any 4 questions from 21 to 30. Each carries 4 scores. (4 × 4 = 16)

Question 21.
Classify the following industries in to extractive, genetic, manufacturing and constructions.
(a) Mining
(b) Poultry farming
(c) Building a dam
(d) Sugar production
Answer:
a) Mining – Extractive
b) Poultry Farming – Genetic
c) Building a dam – Construction
d) Sugar production – Manufacturing

Question 22.
Match the following:-

A	B
(a) Partnership	Partner
(b) Joint Stock Company	Share holder
(c) Sole Proprietorship	Sole trader
(d) Co-op. society	Member

Answer:

A	B
(a) Partnership	Partner
(b) Joint Stock Company	Share holder
(c) Sole Proprietorship	Sole trader
(d) Co-op. society	Member

Question 23.
Explain any four features of a departmental undertaking.
Answer:
Features of Department Undertakings

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 24.
What you mean by e-banking? Give two examples fore-banking services.
Answer:
a) E-banking means the conduct of banking transactions using the computer network.
b) Eg: ATM, Electronic Fund Transfer

Question 25.
Write a short note on the following:
(a) Bonded warehouses
(b) Government warehouses
Answer:
a) Bonded warehouses : These warehouses are used to keep the imported goods before the payment of import duties.
b) Government warehouses: These warehouses are fully owned and managed by the government. For example, Food Corporation of India, State Trading Corporation, and Central Warehousing Corporation.

Question 26.
What is outsourcing of services? List out any two „ benefits of it.
Answer:

1. Business Process Outsourcing
2. Merits of outsourcing
   • It provides an opportunity to 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.
Briefly explain any four causes of environmental pollution.
Answer:
Causes of PollutionMany industrial organisations have been responsible for causing air, water, land and noise pollution.

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.
4. Noise Pollution : Noise caused by the running of factories and vehicles create a serious health hazard such as loss of hearing, malfunctioning of the heart and mental disorders.

Question 28.
Describe 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 co pany 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 29.
Write four differences between share and debenture..
Answer:

Shares	Debentures
Shareholders are the owners of the company	Debenture holders are the creditors of the company
Shareholders get dividends	Debenture holders get interest
Shareholders have voting right	Debenture holders have no voting right
No security is required to issue shares	Generally debentures are secured

Question 30.
List out any four ‘differences 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.
Match the following.

A	B
(a) Hindrance of place	Insurance
(b) Hindrance of risk	Transport
(c) Hindrance of finance	Advertising
(d) Hindrance of knowledge	Warehousing Features
(e) Hindrance of time	Banking

Answer:

A	B
(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 Features

Question 32.
Briefly explain any five features of a Joint Stock Company.
Answer:

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, insblvency 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.

Question 33.
Explain any two principles of insurance applicable to life insurance.
Answer:
a) 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, b) Insurable interest: The insured must have an insurable interest in the subject matter of insurance.

Question 34.
Describe the following:
(a) e-Commerce
(b) cash on delivery
Answer:
a) E-commerce covers a firms interactions with its customers and suppliers over the internet.
b) Payment on e-commerce transactions at the time of delivery of goods.

Question 35.
How business import its responsibility to the following interest groups?
(a) Owner
(b) Worker
(c) Consumer
(d) Government
(e) Community
Answer:

1. Responsibility towards share holders or owners :To provide a fair return on the investment.
2. Responsibility towards the workers To provide fair wages.
3. Responsibility towards consumers : Supply quality goods and sen/ices at reasonable prices.
4. Responsibility towards Government : Respect the Laws of the country.
5. Responsibility towards community : Make employment opportunities.

Question 36.
Write any five differences between Memorandum of Association and Articles of Association.
Answer:
a) A social responsibility is the obligation of businessman which are desirable in terms of the objectives and values of our society, b) Discretionary responsibility:- This refers to voluntary obligation that an enterprise assumes.

Question 37.
What are departmental Stores? briefly explain any three features of it.
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
Alteration of Memorandum is very difficult	It can be altered by passing a special resolution.

Question 38.
Differentiate between Public Company and Private Company.
Answer:
A departmental store is a large scale retail shop selling a wide variety of goods in 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.

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.

Question 39.
What are global enterprises? List out any three features of it.
Answer:

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

Answer any 2 questions from 41 to 44. Each carries 8 scores. (2 × 8 = 16)

Question 40.
What is Commerce? briefly describe the various functions of Commerce.
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.
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 41.
What is Partnership Deed? What are its contents?
Answer:
Commerce
Commerce is defined as all activities involving the removal of hindrances in the process of exchange of goods. It includes all those activities, which are necessary for the free flow of goods and services from the producer to the consumer. Commerce includes trade and auxiliaries to trade. Commerce = Trade + auxiliaries to trade Functions of commerce

Various Hindrances	Remedies
Hindrance of person	Trade
Hindrance of place	Transportation
Hindrance of time	Warehousing
Hindrance of risk	Insurance
Hindrance of knowledge	Advertising
Hindrance of finance	Banking

Question 42.
Illustrate the various functions,performed by Commercial Banks in India.
Answer:
Partnership Deed: The written agreement which specifies the terms and conditions of partnership is called the partnership deed.
 Contents of deed

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 ratip
6. Rights, duties and powers of the partners
7. Salaries and withdrawals of the partners
8. Terms governing admission, retirement and expulsion of a partner
9. Interest on capital and interest on drawings
10. Procedure for dissolution of the firm
11. Preparation of accounts and their auditing
12. Method of solving disputes

Question 43.
Identify the large scale retailing business unit selling wide variety of consumer products on the basis of self service? List out any six features of it.
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.lt 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
   • 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
   • Acting as trustees or executors
   • Providing credit information
2. 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
   • Providing foreign exchange to importers and traveller’s going abroad.

Question 44.
Identify the large scale retailing business unit selling wide variety of consumer products on the basis of self service? List out any six features of it.
Answer:
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’.

1. 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
2. Advantages
   • Consumers can purchase everthing from supermarket.
   • There is no bad debt as sales are on cash basis only.
   • They are located at the centre of a town.
   • Consumers can select goods according to their taste and preferences.
   • Variety of goods is available in a super market.