CBSE Class 11 Business Studies Term 2 Sample Paper Set B

Mcq Questions For Ncert Class 11 Business Studies Practice Paper

Question. Which of the following statement(s) is/are not true?
(a) Pollution causes danger to biological diversity
(b) Controlling pollution can result in reduction of health hazards
(c) TheWildlife Protection Act was enacted in 1992
(d) None of the above

Answer : C

Question. The shares of a government company are purchased in the name of ……… .
(a) The PM of India
(b) The President of India
(c) The Governor
(d) The Finance Minister

Answer : B

Question. e-Choupal is an initiative of Indian Tobacco Corporation (ITC) Limited to link directly with rural farmers for procurement of agricultural produce. e-Choupal was conceived to tackle the challenge posed by the unique features of Indian agriculture characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries. Through e-Choupal, ITC aims to change the quality of life and the entire outlook of Indian farmers.
Towards which interest group, is ITC discharging its social responsibility?
(a) Society
(b) Consumers
(c) Employees
(d) Shareholders

Answer : A

Question. Public enterprises are owned by the public.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. ‘Indian Railways’ is a part of Railway Ministry. It is organised, financed and controlled by Railway Ministry. The finances are allocated from government treasury and whatever revenue it earns is deposited to government treasury only. It is treated as a part of government and even the appointment, recruitment and selection of employees is done in the same way as that of civil servant.
Name the type of public sector enterprise ‘Indian Railways’ is
(a) statutory corporation
(b) government company
(c) departmental undertaking
(d) None of the above

Answer : C

Question. e-business only includes buying and selling goods and services over the internet.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. Match the ‘nature of services’ in column I with their respective statement in column II.

Codes
       A   B    C    D
(a) (iii) (ii)  (i)  (iv)
(b) (iii) (i)  (ii)  (iv)
(c)  (i)  (ii) (iii) (iv)
(d) (ii)  (i)  (iii) (iv)

Answer : A

Question. If the required outlay for the project is so large that it cannot easily be arranged within the available means, the project has to be given up. Which aspect has been highlighted by aforesaid statement?
(a) Technical feasibility
(b) Economic feasibility
(c) Financial feasibility
(d) Professional feasibility

Answer : C

Question. Joint life policy is taken up by a person for his/her children to meet the expenses of their education or marriage.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : B

Question. Some organisations are directly attached to a particular ministry of the central or state government and are under the direct control of the concerned minister. The business decisions are thus influenced by political consideration. State the type of enterprise come under this category.
(a) Statutory corporation
(b) Government company
(c) Departmental undertaking
(d) None of the above

Answer : C

Question. Darshan Sharma prepares ‘Sohanpapri’ for customers during Diwali season every year. He prepared more ‘Sohanpapri’ due to increased demand with adulterated ingredients. He employed women and children for packing and paid them less salary. This way he generated good profit from himself. Which objective of business is not fulfilled here?
(a) Personal
(b) Social
(c) Economical
(d) None of these

Answer : B

Question. There is a less opportunity for interpersonal touch in case of ……… .
(a) traditional business
(b) retail business
(c) e-business
(d) None of these

Answer : C

Question. Legal obligations are compulsory for business to be followed as per provisions of law, while socialresponsibility is the voluntary action for the betterment of society.
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. At present, Samanvi has ₹ 32,50,000 balance in her Savings Bank Account in Axis Bank. She has a good salary and at the end of every month, her balance in the savings account increases. Ritvi, Manager of Axis Bank, also Samanvi’s close friend, advised her to maintain an account which is a combination of both savings account and deposit account. Ritvi told Samanvi that this account interlinks the savings bank account with a deposit account and any amount in excess of a pre-determined amount is automatically transferred to a fixed deposit and it will enable her to earn better interest. Identify the type of bank account advised by Ritvi to Samanvi.
(a) Fixed deposit account
(b) Recurring deposit account
(c) Multiple option deposit account
(d) Saving deposit account

Answer : C

Question. An American firm ‘Zebsik Enterprise’ purchased handmade decorative pieces from India, re-packaged and sold them in its own name to Germany. The above transactions represents
(a) Entrepot for Zebsik Enterprise, Export for India and Import for Germany.
(b) Export for Zebsik Enterprise, Import for India and Entrepot for Germany.
(c) Import for Zebsik Enterprise, Entrepot for India and Export for Germany.
(d) Import for Zebsik Enterprise, Export for India and Entrepot for Germany.

Answer : A

Question. Rapid Automobiles Ltd. is a wellknown manufacturer in the field of e-bikes. The company makes online transactions for purchase of tyres, battery, etc. from different business units. Use of internet has given them much wider choice of suppliers and company finds this online buying very convenient and time saving. Identify the component of e-business being described above.
(a) C2C
(b) B2B
(c) B2C
(d) B2G

Answer : B

Question. Muskaan insured her cargo ship against perils of sea through a Marine Insurance Policy of ₹ 10,00,000. During the voyage, the sea water entered into the ship and the cargo was damaged. She suffered a loss of ₹ 3,00,000. She filed a claim for the loss against the insurance company.
Which principle of insurance is highlighted in the above case?
(a) Subrogation
(b) Mitigation
(c) Contribution
(d) Proximate cause

Answer : D

Question. Tea is mainly produced in Assam, while cotton in Gujarat and Maharashtra but they are required for consumption in different parts of the country. How can this hindrance of place be removed?
(a) Through warehousing
(b) Through banking
(c) Through transportation
(d) Through advertising

Answer : C

Question. Mercury Ltd. decided to donate 2% of its sales to Child Rights and You (CRY) for improving the condition of children in India. This initiative by the company was highly appreciated by the publicand their sales increased by 10%. Identity the interest group towards which Mercury Lad in discharging its social responsibility.
(a) Consumer
(b) Community
(c) Government
(d) Employees

Answer : B

Question. It is the responsibility of every business to provide accurate and full information about its working as well as schemes of future growth.
Towards which interested group is this social responsibility related to?
(a) Consumers
(b) Employees
(c) Investors
(d) Government

Answer : C

Assertion-Reasoning MCQs :

Question. Assertion (A) It is in the long-term interest of a business to assume social responsibility.
Reason (R) Better social relationship improves its public image and prospects of growth in the long-run.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Question. Assertion (A) Under e-business, communication can flow in any direction.
Reason (R) There is high transaction risk in e-business due to lack of personal contact between the parties.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false 
(d) Assertion (A) is false, but Reason (R) is true

Answer : B

Question. Assertion (A) Business is a noneconomic activity.
Reason (R) Business is undertaken with the aim of earning money.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : D

Question. Assertion (A) Life insurance is a contract of indemnity. 
Reason (R) According to principle of indemnity, the insured is entitled to recover the extent of the loss suffered by him, up to the limit of the amount covered by the policy.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : B

Question. Assertion (A) Every partner is both an agent and a principal.
Reason (R) Partner is an agent of other partners as he is bound by the acts of other partners.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : C

Case Based MCQs :

Dhruv, Sarthak and Dheeraj are three partners in a firm. The name of the firm is ‘Friends Pustak Bhandar’. The latest books of almost all subjects remain available at the Pustak Bhandar.
All the three partners decided that 10% of the total profit of the firm would be distributed among the poor children every year. This has a very positive effect on the goodwill of the firm. Dheeraj is a renowned businessman who allowed the use of his name by the firm but does not contribute capital. Sarthak had contributed capital to the firm but does not participate in the management of the firm. Dhruv actively participates in the management and does business on behalf of other partners.

Question. Identify the type of partner Dhruv is in ‘Friends Pustak Bhandar’.
(a) Active
(b) Secret
(c) Nominal
(d) Estoppel

Answer : A

Question. Identify the type of partner Dheeraj is in ‘Friends Pustak Bhandar’.
(a) Nominal
(b) Secret
(c) Sleeping
(d) Estoppel

Answer : A

Question. Which feature of partnership highlighted in the above case?
(a) Sharing profits
(b) Two or more partners
(c) Both (a) and (b)
(d) None of these

Answer : C

Question. Identify the type of partner Sarthak is in ‘Friends Pustak Bhandar’.
(a) Active
(b) Secret
(c) Sleeping
(d) Estoppel

Answer : C

Question. Which type of business organisation highlighted in the above case?
(a) Sole proprietor
(b) Partnership
(c) HUF
(d) Company

Answer : B

Sunaina buys readymade garments from various manufacturers and sells them in her store. However, Seema Reddy designs her own range of clothing. She gets them made through her team of designers and sells them directly under the brand name ‘Forever Young’.
Although, both of them are making good returns on their investments but in past they have also incurred huge losses due to changes in the taste and preference of consumer and fashion. Also, despite being in business for such a long time, they cannot say with certainty as to what amount of profit will be earned by them in future.

Question. “Seema Reddy designs her own range of clothing”. Which nature of business highlighted here?
(a) Art
(b) Science
(c) Profession
(d) None of these

Answer : A

Question. Identify the type of human activity Sunaina and Seema is doing.
(a) Economic activity
(b) Non-economic activity
(c) Both (a) and (b)
(d) None of the above

Answer : A

Question. “After completing a course in Fashion Designing, five years back, both of them started their own separate outlets in Delhi and Chennai respectively to earn their livelihood.” Which feature of business is highlighted here?
(a) Uncertainty of return
(b) Dealing in goods on regular basis
(c) An economic activity
(d) Element of risk

Answer : C

Question. “Although, both of them are making good returns on their investments but in past they have also incurred huge losses due to changes in the taste and preference of consumer and fashion.” Which feature of business is highlighted here?
(a) Uncertainty of return
(b) Dealing in goods on regular basis
(c) An economic activity
(d) Element of risk

Answer : D

Question. Identify the category of economic activity Sunaina and Seema is doing.
(a) Profession
(b) Employment
(c) Job
(d) Business

Answer : D

Four friends Ramesh, Roshan, Rohit and Shabnam completed their studies of B.Com and prepared themselves to enter the banking sector.
All the four of them wished to serve the people in a better way by becoming bank employees. All the four of them appeared in the banking examination and passed with good marks. Ramesh was appointed as a manager in ‘Doha Bank’. Roshan got the post of P.O. in Punjab National Bank.
Rohit and Shabnam were respectively selected in the Federal Bank and Reserve Bank of India. Both of them had not got the appointment letters yet.

Question. To which class does the Federal Bank belong?
(a) Public Sector Bank
(b) Private Sector Bank
(c) Foreign Bank
(d) Central Bank

Answer : B

Question. Out of these banks, which bank is Indian commercial bank?
(a) Federal Bank
(b) Reserve Bank of India
(c) Punjab National Bank
(d) Doha Bank

Answer : C

Question. Identify the type of bank of Ramesh.
(a) Public Sector Bank
(b) Private Sector Bank
(c) Foreign Bank
(d) Central Bank

Answer : C

Question. Identify the class of bank, the appointment letter of which is being awaited by Shabnam.
(a) Public Sector Bank
(b) Private Sector Bank
(c) Foreign Bank
(d) Central Bank

Answer : D

Question. Roshan was appointed as P.O. Identify the type of his bank.
(a) Public Sector Bank
(b) Private SectorBank
(c) Foreign Bank
(d) Central Bank

Answer : A