CBSE Class 11 Business Studies Term 2 Sample Paper Set A

Read and download PDF of CBSE Class 11 Business Studies Sample Paper Set Z designed as per the latest curriculum and examination pattern for Class 11 issued by CBSE, NCERT and KVS. The latest Class 11 Business Studies Sample Papers have been provided with solutions so that the students can solve these practice papers and then compare their answers. This will help them to identify mistakes and improvement areas in Business Studies Standard 11 which they need to study more to get better marks in Grade 11 exams. After solving these guess papers also refer to solved Class 11 Business Studies Question Papers available on our website to build strong understanding of the subject

Business Studies Sample Paper Class 11

Students can refer to the below Class 11 Business Studies Sample Paper designed to help students understand the pattern of questions that will be asked in Grade 11 exams. Please download CBSE Class 11 Business Studies Sample Paper Set Z

Business Studies Class 11 Sample Paper

Very Short Answer Type Questions 

 
Question : What is business Finance? Identify the source of finance highlighted in the following case : 
a. It is also known as ploughing back of profit
b. It facilitates the purchase of goods and services without making immediate payment.
Answer :  Business finance refers to the money and credit invested or employed in the business firm. It is concerned with the acquisition and utilization of capital in meeting the financial needs and overall objectives of a business enterprise.
a. Retained earnings b. Trade Credit 
 
Question : What do you mean by Entrepreneurship development and Intellectual Property Rights? Explain these two concepts. 
Answer : Entrepreneurship development is the process of improving the skills and knowledge of entrepreneurs through various training and classroom programmes.
Intellectual Property is a category of property that includes intangible creations of human intellect. The most prominent types of intellectual properties are trade secrets, copyrights, patents, trademarks etc. 
 
Question : What do you mean by international Trade? State any two features. 
Answer : Buying and selling of goods and services between two countries are called external trade or foreign trade or international business. It facilitates specialization and efficient utilization of resources. Use of foreign exchange, Heavy documentation, any two 
 
Question : How you can differentiate departmental stores and chain stores based on its features? Write any two such differences. 
Answer : Pricing policy, Location, Services offered, Credit facilities. Any two with Explanation.

Short Answer Type Questions

 
 
Question : Many Organisations are using various financial instruments to raise money in international capital market. Discuss the major financial instruments used for this purpose. 
Answer : A. GDRs (Global Depository Receipts): It is an instrument issued abroad by an Indian company through an Overseas Depository Bank (ODB) to raise funds from foreign countries and is listed and traded on a foreign stock exchange. It does not carry any voting right but only dividends and capital appreciation. It is usually seen in European Union.
B. ADRs (American Depository Receipts): ADRs are bought and sold in American markets like other stocks. It is similar to GDR except that it can be traded only on a stock exchange of USA.
C. IDRs (Indian Depository Receipts): It is a financial instrument denominated in Indian Rupees in the form of Depository Receipt. It is created by an Indian Depository to enable a foreign company to raise funds from Indian securities market.  
 
 
Question : Kavya opened a small manufacturing unit of garments in Mana ( A hilly area of Uttarakhand).Explain the role of small business in backward areas. 
Answer :  Small business organizations play an important role in the socio economic development of the country. Some of them are as follows:
a. Multiple sources of income for family.
b. Self employment opportunities in commerce, manufacturing and service segments
c. Employment opportunities for artisans and the weaker sections of society.
d. Migration of rural people to urban areas in search of employment has been stopped.
e. Helped to solve the problem of poverty and unemployment.
f. Helped to reduce the income inequalities up to a certain extent.
g. Accelerated industrial growth of the country.
 
Question : ‘A retailer does not render any useful service to the manufacturer and wholesaler’, defend or refute. Explain with reason. 
OR
Giriraj is a retailer, who runs a departmental store in Krihna nagar, Delhi. He stocks an extensive variety of goods so as to provide a wider choice to the buyers. Giriraj has effectively displayed new products and provides information about features, price etc. of such products to the customers. The departmental store is situated near to the residential areas and remains open for long hours. Giriraj also sell goods on credit to the reputed and known customers.
Identify the services to the retailers to consumers’ are provided by Giriraj by quoting lines from the given case.
Answer : Refuted the statement . Any two services rendered by the retailer to wholesaler or manufacturer 
OR
1. Wide selection: He stocks…….
2. New product information…..
3. Convenience in buying….
4. Provide credit facilities…
 
Question : What do you mean by multiple shops? Explain the features. 
Answer : It is a system of branch shops operated under a centralized management and dealing in similar line of goods. Branches of the shop are located throughout the nation under the same name and management and they specialize in one or two lines of goods.
Features .Any two points with explanation
• Convenient location for consumers.
• Centralized buying and decentralized selling.
• Centralized management and unified system of control.
• Follows cash and carry principle.
• Uniformity in shop’s design and lay-out. Proper inspection from head office ensures the smooth functioning

Long Answer Type Questions

 
Question : Explain various schemes and ways to fund start-up scheme by government of India. 
Answer :  Ways to fund startup ( Any Five points with explanation, ½ mark for heading and ½ for correct explanation) 
1. Boot Strapping – Self-financing by the promoters from their personal savings and resources.
2. Crowd Funding – Pooling resources by a group of people for a common goal especially through internet platforms.
3. Angel Investment – Angel investors are the individuals with surplus cash who have keen interest to invest in startups. They also offer mentoring or advice along with capital.
4. Venture Capital – Venture capitalists provide professionally managed funds to companies and startups that have huge potential. It is also called risk capital as it is invested in new ventures.
5. Business Incubators and Accelerators – Incubators provide funds for startups in the early stage of its business, whereas accelerators help the startups to run or to take a giant leap in business.
6. Microfinance and NBFCs – Microfinance is a category of financial services targeted at individuals and small business who lack access to conventional banking or who have not qualified for a bank loan.
 
 
Question : NTB bearings Ltd. was the first company to manufacture needle roller bearings in India. For over 40 years NTB bearings Ltd has pioneered the leading edge of bearing technology and today over most of the vehicles on Indian roads run on NTB parts. The directors of NTB Bearings Ltd. want to modernize their plant and machinery with latest technology at the cost of ₹ 50 lakhs. They approached an organisation which will not only provide financial assistance but also best technical advice from where the machinery can be imported 
On the basis of aforesaid information about NTB Bearings Ltd answer the following questions:
a) Identify and explain the source of finance used by company to meet its funds requirement.
b) State any four merits of raising funds through the source specified in part (a).
OR
Differentiate between owners’ fund and borrowed fund.
Answer :  A. The source of finance used by the company is development bank/Financial Institutions
Merits are
1. Long term finance – They provide long term finance, which is not provided by commercial banks.
2. Additional services – They are also conducting market surveys, providing managerial and technical services etc.
3. Increases goodwill of the company – Obtaining funds from these financial institutions often increased the reputation of the firm.
4. Easy repayments – It reduces burden for the business.
5. Reliable source – Funds are available even during depression, when other sources are not available
OR
Any five difference between owned fund and borrowed fund 
 
Question : ‘Wholesalers perform several services to both manufactures and retailers’. Explain the various services of wholesalers towards manufactures and retailers 
OR
Niranjan deals in cosmetics on large scale. He buys the goods in bulk directly from the manufacturers and supply the same to the shops. He does not deal directly with the customers. Niranjan also provides financial support to manufacturers by making payment in advance while placing order. Niranjan is serving as an important link between the two parties. Identify the two parties and also discuss the services rendered by Niranjan to any one party identified above.
Answer : 
11. Services of Wholesalers to manufacturers / producers
1. Facilitating large scale production – Bulk orders from wholesalers enable to produce in large quantity.
2. Bearing risk – They purchase the entire goods immediately on production, so that they take the risk of change in demand, spoilage, damage, theft etc. during transportation and storage.
3. Financial assistance – Wholesalers purchase on cash basis and sometimes they may give advance payment for bulk purchases.
4. Expert advice – Wholesalers are in constant touch with the retailers, they can collect information about the tastes and fashion of consumers and passes it on to producers.
5. Helps in marketing – Wholesalers take care of distribution of goods, market research, transportation, warehousing etc.
6. Facilitates continuity of production – Wholesalers purchase goods on a real time basis as and when they produce goods. It helps the manufacturers to carryout continuous production.
7. Storage – The burden of storing goods passes to the wholesalers.
Services to Retailers
1. Availability of goods – Retailers get goods as and when they required as there is a large quantity stored by wholesalers.
2. Marketing support – Wholesaler takes all the burden of advertisement and sales promotion activities, and the retailer enjoys the benefit.
3. Providing credit facilities – It enables the retailers to conduct their business without much investment in working capital.
4. Specialized knowledge – Wholesalers can give expert advice on their products as they are dealing only a limited line of goods. They also inform the retailers about new products, their uses, quality, prices etc.
5. Risk sharing – The risk of retailers gets reduced as most of the burden of marketing such as price fluctuation, loss of goods in transit, storage etc. is born by the wholesalers. 
 
Question : International business is important to both ‘Nation’ and ‘Business Firms’. Explain how international business is beneficial to the Nation and the Business Firm. 
Answer :  Benefits of International Business
Benefits to Nations: Earning of foreign exchange, more efficient use of resources, improving growth prospects and employment potentials, increased standard of living etc.
Benefits to Firms – Higher profits, increased capacity utilization, prospects for growth, way out to intense competition in domestic market, improved business vision etc.

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Business Studies Sample Papers for Class 11
CBSE Class 11 Business Studies Sample Paper Set 1 Solved
CBSE Class 11 Business Studies Sample Paper Set 2 Solved
CBSE Class 11 Business Studies Sample Paper Set 3
CBSE Class 11 Business Studies Sample Paper Set 3 Solved
CBSE Class 11 Business Studies Sample Paper Set 4
CBSE Class 11 Business Studies Sample Paper Set 4 Solved
CBSE Class 11 Business Studies Sample Paper Set 5
CBSE Class 11 Business Studies Sample Paper Set 5 Solved
CBSE Class 11 Business Studies Sample Paper Set 6 Solved
CBSE Class 11 Business Studies Sample Paper Set 7 Solved
CBSE Class 11 Business Studies Sample Paper Set 8 Solved
CBSE Class 11 Business Studies Sample Paper Set 9 Solved
CBSE Class 11 Business Studies Sample Paper Set 10 Solved
CBSE Class 11 Business Studies Sample Paper Set 11 Solved
CBSE Class 11 Business Studies Sample Paper Set 12 Solved
CBSE Class 11 Business Studies Sample Paper Set A
CBSE Class 11 Business Studies Sample Paper Set B
CBSE Class 11 Business Studies Sample Paper Set C
CBSE Class 11 Business Studies Sample Paper Set D
CBSE Class 11 Business Studies Sample Paper Set E
CBSE Class 11 Business Studies Sample Paper Set F
CBSE Class 11 Business Studies Sample Paper Set G
CBSE Class 11 Business Studies Sample Paper Set H
CBSE Class 11 Business Studies Sample Paper Set I
CBSE Class 11 Business Studies Sample Paper Set J
CBSE Class 11 Business Studies Sample Paper Set K
CBSE Class 11 Business Studies Sample Paper Set L
CBSE Class 11 Business Studies Sample Paper Set M
CBSE Class 11 Business Studies Sample Paper Set N
CBSE Class 11 Business Studies Sample Paper Set O
CBSE Class 11 Business Studies Sample Paper Set P
CBSE Class 11 Business Studies Sample Paper Set Q
CBSE Class 11 Business Studies Sample Paper Set R
CBSE Class 11 Business Studies Sample Paper Set S
CBSE Class 11 Business Studies Sample Paper Set T
CBSE Class 11 Business Studies Sample Paper Set U
CBSE Class 11 Business Studies Sample Paper Term 1 Set A
CBSE Class 11 Business Studies Sample Paper Term 1 Set B
CBSE Class 11 Business Studies Term 2 Sample Paper Set A
CBSE Class 11 Business Studies Term 2 Sample Paper Set B
CBSE Class 11 Business Studies Term 2 Sample Paper Set C
CBSE Class 11 Business Studies Term 2 Sample Paper Set D

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