SKD ACADEMY

REVISION WORKSHEET

CLASS XI

SUBJECT – BUSINESS STUDIES

MCQ

1. “Amrut” is a NGO operated in the district of Rajkot since 2005. It deals in providing medicines and other medical
facilities to the rural, backward and below poverty line people in the district. In case of need, arrangements are made by
the NGO to shift critical patients to referred hospitals. Name the type of human activities performed by the NGO
“Amrut”.
(A) Economic Activities (B) Non-Economic Activities
(C) Spiritual Activities (D) None of the above

2. Ruchi is a practicing Chartered Accountant. She has her C.A. Firm at Hyderabad, Telangana. She deals in providing
Income Tax and GST related services to her clients against very reasonable consultancy fees. She has her own
professional coaching classes for C.A. Enrolled Students. Identify the types of economic activities performed by Ruchi as
referred in the above case.
(A) Business (B) Profession
(C) Employment (D) None of the above 4

3. Dell Inc is a company involved in manufacturing of Computer and related items. It’s a very popular name among the
computer savvy youth in India. There are different models of Desktop, Laptop, Tabs, Gaming and Workstations
manufactured and sold by the company in the Indian market. Which type of Industry highlighted in the above case?
(A) Genetic Industry (B) Extractive Industry
(C) Processing Industry (D) Assembly Industry

4. Ajeet started its Travel Agency in the year 2000 by taking a small room on Rent in Delhi. He invested money and
efforts to build his business. Quality and timely services provided by his Travel Agency made him popular in Delhi. Name
the form of business organization owned and operated by Ajeet.
(A) Partnership (B) One Person Company
(C) Joint Venture (D) Sole Trading Concern

5. After completing high studies in Hotel Management courses from one of the highly reputed Hotel Management
Institutes of India, Mahesh decided to start his own Bakery at his home town. His father arranged funds and supported
him to commence his business. He recruited some staffs, purchased required equipments and machineries. Within few
months, he started manufacturing bakery products in the market and sold at reasonable prices. His quality products and
reasonable prices helped him in making good profit. Identify the form of business organization highlighted in the above
case.
(A) Company (B) Joint Hindu Family Business
(C) Sole Trading concern (D) Partnership

6. ‘It is a democratic large sized organisation having numerous shareholders; the owners having minimum influence in
terms of controlling or running the business.” Which form of organisation and the corresponding demerit is highlighted
here?
(A) Cooperative Society — Government Control (B) Joint Stock Company — Impersonal Work Environment
(C) Cooperative Society — Inefficiency in Management (D) Joint Stock Company — Oligarchic Management

7. An organization is working for the purpose of public welfare as a ministry of government. It is financed by govt. and
all its income is deposited in govt. treasury. Identify which kind of public sector enterprise is it.
 (A)Partnership (B) Departmental undertaking
(C) Sole proprietorship (D) Company

8. Without disclosing that he is suffering from TB, Mr. A gets himself insured against death for rupees 10 lakhs. He lives
for another three-four years and dies due to TB. The insurance company comes to know about Mr. A’s illness only after
his death. Now, under these circumstances the insurance company is not liable to pay anything to the dependents of
Mr. A as the contract between the insurance company and Mr. A is void. Identify the principle of insurance to which the
above example related:
(A) Utmost good faith (B) Insurable interest
(C) Indemnity (D) Subrogation

9. A is a KVS employee and posted in Gujarat, 1600kms away from his hometown. His friend need Rs. 20,000 and
requested A for the amount. A sends the amount by digital mode. It is…..
(A) RTGS (B) NEFT
(C) Both a and b (D) None of the above

10. IRCTC’s portal for ticket booking is an example of which of the following categories of business?
(A) B2B (B) B2C
(C) C2C (D) Intra B

Assertion- Reasoning Based Questions

1 Assertion (A) Sole Trading Concern is treated as a “One Man Show”.
Reason (R) It is owned, controlled, managed and operated by the owner all alone

2 Assertion (A) Secrecy can be maintained in case of sole proprietorship.

Reason (R) All Sole Proprietors are always honest

3. Assertion (A): Political interference is a demerit of government company.

Reason(R): The operational policies of the government companies are formed according to the whims and fancies of
the ministers.

4. Assertion (A): RTGS is suitable for high value transactions.

Reason(R): Minimum value of transactions in RTGS should be rupees 5lakhs

5. Assertion: There is more risk in the traditional business.

Reason: Parties have no personal interaction while buying and selling.

6. Assertion: Protecting the physical environment is in general interest of the firm.

Reason: By protecting the physical environment, the business can keep the government interference at bay.

7.Assertion: With the use of latest methodologies of production, the business remains in the good books of government.
Reason: Latest methodologies lead government to boast about it’s achievements

8.Assertion :The business can ensure environmental protection by adopting deforestation.

Reason : Sewage disposal is a technique that could be adopted by business for environmental protection.
(A) Both statements are correct (B) Both statements are incorrect
(C)First statement is true, second is false (D)First statement is false, second is true
Case Studies (source based questions)
1. Post and Telegraph department is part of a government ministry. It is fully managed, controlled and financed by
the concerned Ministry. The annual budget of the ministry makes provision for the funds needed by the
government. The ministry is answerable to the Parliament for its functioning. Answer the following questions on
the basis of above paragraph.
a. Name the sector under which the Post and Telegraph department comes.
(A) Private Sector (B) Public Sector
(C) Joint Sector (D)None of The Above

b. Name the kind of organisation it is.

(A) Private Company (B) Public Company (C)Statutory Corporation

2. Mr. David a businessman is involved in daily dealings of cash through the account of his business in Axis Bank due to
unavailability of funds and the urgent need to pay his creditors he approaches the bank to withdraw more than the
balance available in his account using the facility provided to him by the bank. His wife was also holding an account in
the same bank and wanted to transfer the Rs.500000 to her parents but she did not have e banking facility in her saving
account. But Bank helped her to transfer the money Answer the following questions on the basis of above paragraph.

a. Which type of bank account is Mr.David holding for his Business?

(A) Saving account (B) Fixed deposits account (C) Current account (D) Recurring deposits account

b. Name the facility provided by bank to David when there were no funds in his account to pay his creditors.
(A) Overdraft facility (B) Transfer facility (C) Fixed deposits facility (D) All of the above.

c. Bank transferred money from his wife's savings Account. Name the facility provided by bank to her to transfer money
as early as possible.
(A) NEFT (B) RTGS (C) RBI transfer (D)None of the above

d Which bank account gives the account holders facility to earn more and more interest?
(A) Saving bank Account (B) Current Account (C) Recurring deposits account (D) Fixed deposits account

3. IT Ltd. Is a well known company in the telecom sector. The company is committed to treat all its employees with
equity and dignity irrespective of their age, caste, gender, etc. It not only abides all the provisions of law and pay the
taxes on time but also takes an active part in spreading awareness amongst people regarding various social causes. It
prefers to charge fairly from its customers for its services and also provide strong customer support services. The
company strives to work effectively and efficiently so as to ensure minimum wastages and maximum returns for its
shareholders. The company is also running a charitable school for the underprivileged children of the area.

a. Identify that the following lines from paragraph denote responsibility of business towards which group? 1. “The
company is committed to treat all its employees with equity and dignity irrespective of their age, caste, gender, etc
(A) Customers (B) Employees (C)Government (D)Investors

b. “It not only abides all the provisions of law and pay the taxes on time”.
(A) Customers (B) Employees (C)Government (D)Investors

c. “Takes an active part in spreading awareness amongst people regarding various social causes”.
(A) Community (B) Employees (C)Government (D)Investors

d. “To ensure minimum wastages and maximum returns for its shareholders”.
(A) Community (B) Employees (C)Government (D)Investors
4. Edward took a fire insurance policy of Rs. 20 lakh for his factory at the annual premium of 24,000 rupees. In order to
avoid higher premium, he did not disclose that a highly explosive chemical is being used in his factory. Due to an
accidental fire his factory gets severely damaged. The insurance company refused to pay the claim as it came to know
about the fact. On the other side his friend Donald was also running a general store. The store was insured against
natural disasters like flood, earthquake and fire from Hindustan General insurance company for the amount of rupees
50 lakhs. Heavy raining in the city caused massive flood. This left the store without any security. The store was looted by
people which was caught on CCTV. She claimed from the insurance company the amount of damage of rupees 13 lakhs
for the material and furniture spoiled from flood and also rupees five Lakhs for the loss of material by theft, she also
claimed another rupees 25 lakhs for now converting the store into fully AC and additional floor for more storage space.
Insurance company after assessing the damage to the property and stock due to flood and seeing the CCTV footage
accepted the claim of rupees 13 lakhs. Donald argued that she has been paying premium for Rs. 50 lakhs so she should
be paid the full claim of rupees 43 Lac rupees. Later police recovered the goods of rupees 5 Lac from the robbers.

Answer the following questions on the basis of above case study.

a. Which principle of insurance has been violated by Edward?
(A) Principle of indemnity (B) Principle of subrogation
(C)Principle of utmost good faith (D) Principle of Causa-Proxima

b. Insurance company has denied to pay rupees 50 Lac losses to Donald and accepted the claim of only Rs. 13 lakhs. It is
due to ...
(A) Principle of indemnity (B) Principle of subrogation
(C) Principle of utmost good faith (D) Principle of Causa- Proxima \
c. Suppose in above case Donald was not taking care of the factory because she has got it insured. Which principle of
insurance is neglected here by Donald?
(A) Principle of Mitigation of Loss (B) Principle of subrogation
(C) Principle of utmost good faith (D) Principle of Causa- Proxima

d.The spoiled articles of Rs. 13 lakhs were taken over by insurance company. This act of company can be justified do to
which principle of insurance.
(A) Principle of indemnity (B) Principle of subrogation
(C) Principle of utmost good faith (D) None of the above