BUSINESS STUDIES (215)
[Time : 3 Hours ] [ Maximum Marks : 100]
Note : (i) All questions are compulsory. (ii) Marks allotted for each question are indicated against it.
1. The male members of a Joint Hindu Family business are called: 1
2. One man’s capital is a feature of: 1
(B) Joint Hindu Family.
(C) Sole Proprietorship.
3. Perpetual succession is a feature of: 1
(A) Sole Proprietorship.
(C) Joint Stock Company.
(D) Limited Liability Partnership.
4. By what means Petroleum and natural gas is transported from one place to another? 1
(A) Pipelines transport.
(B) Ropeways Transport.
5. The focus of this outsourcing is knowledge expertise: 1
(A) Back office outsourcing.
(B) Knowledge Processing outsourcing.
(C) Front office outsourcing.
(D) Business Processing outsourcing.
6. Which of the following insurance principle, the insured must take all possible steps to reduce the loss or damage to the subject matter of insurance? 1
7. The boards on which advertisements are painted or electronically designed so that they are visible during day or night are called: 1
(A) Vehicular displays.
(D) Internet Advertising.
8. The following court is not regarded as a consumer court: 1
(A) District Forum.
(B) Supreme Court.
(C) State Commission.
(D) National Commission.
9. Telephone booths, beauty parlours, repair shops are not a type of: 1
(A) Wage employment.
(B) Self employment.
(C) Sole proprietorship.
(D) One man control.
10. A person in self employment should not be: 1
(C) Mentally Imbalanced.
(D) Hard working.
11. Explain any two advantages of E-Commerce? 3
Ans. Two advantages of E-Commerce are:-
(1) Wider choice:- With the help of a well-developed computer networking system, business units can operate at the national as well as global level. The customers thus, have a wider choice of products and services.
(2) Improved customer services:- Supplier of goods and services can offer a wide range of services to the customers, before as well as after sales such as information about products, guidance for use, responding to customers’ queries about quality and usefulness of the product, etc.
12. Give differences between traditional business and e-business on the basis of formation, global reach and operating cost. 3
Ans. The following are the differences between traditional business and e-business
High, due to investment in procurement, Marketing and distribution.
Low because physical, facilities not required.
13. Explain any two features of cooperative societies. 3
Ans. The following are the features of cooperative societies:
(1) Voluntary Association:- A cooperative Society is a voluntary association of persons. A member can join the society as and when he likes, continue for as long as he likes, and leave the society at will.
(2) Open Membership:- The membership of a Co-operative Society is open to all those who have a common interest. Membership is not restricted on the basis of caste, sex, colour or religion, but may be limited to the employees of a particular organisation.
14. Distinguish between whole-life policy and endowment policy. 3
Ans. A whole life policy runs for the whole life of the insured and premium is payable all along. The sum assured becomes due for payment to the heirs of the insured only after his death. An endowment policy on the other hand, runs for a limited period or up to a certain age of the insured. The sum assured becomes due for payment at the end of the specified period or on the death of the insured, if it occurs earlier.
15. State the importance of sales promotion from the point of view of manufacturers giving any two points. 3
Ans. Sales promotion is important for manufacturers because:-
1) It helps to increase sales in a competitive market and thus, increases profits,
2) It helps to introduce new products in the market by drawing the attention of potential customers.
16. Multinational companies enjoy several advantages by way of huge earnings due to large-scale production and distribution activities across national borders. Discuss any four such advantages. 4
Ans. Advantages of Multinational companies
(1) Investment of Foreign Capital:- Direct investment of capital by Multinational Companies helps under-developed counties to speed up their economic development.
(2) Generation of Employment:- Expansion of industrial and trading activities by Multinational Companies leads to creation of employment opportunities and raising the standard of living in host countries.
(3) Increase in Exports and Inflow of Foreign Exchange:- Goods produced in the host countries are sometimes exported by Multinational Companies. Foreign exchange thus earned contributes to the foreign exchange reserves of host countries.
(4) Healthy Competition:- Efficient production of quality goods by Multinational Companies prompt the domestic producers to improve their performance in order to survive in the market.
17. Explain the working of net banking. 4
Ans. Net Banking: The Internet provides a secure medium for transferring funds electronically between bank accounts, and also for making banking transactions over the Internet. All banking activities that were conventionally carried by visiting a bank can now be done through a computer with Internet access. Credit cards transactions are a form on Internet Banking. With Net-Banking, you can not only view your account balance but also open a Fixed Deposit, transfer funds, pay your electricity, telephone or mobile phone bills and much more. Presently, through Net-Banking, you can view not only your one account but also your account(s) in other Banks.
18. This is a large scale retail shop where a large variety of goods are sold in a single building. Identify this type of large scale retailing business and state its any three advantages. 4
Ans. This type of large scale retailing business is called departmental store. Advantages of departmental store are:-
(1) Convenience of shopping:- Since a large variety of goods are sold under one roof, we need not move from one bazaar to another or from one shop to another to buy goods.
(2) Wide choice of products:- A wide variety of products from different manufactures are sold in these stores. Thus, a customer has a wide choice of goods from which he/she can select the best product as needed.
(3) Economies of large-scale purchase and sale:- Departmental stores buys goods on large scale. So it can bypass wholesalers and gets the goods directly from the manufacturers. This way it enjoys the benefits of discounts from the manufacturers.
19. Give the objectives of “Prevention of Food Adulteration Act, 1954” and “Essential Commodities Act, 1955. 4
Ans. “Prevention of Food Adulteration Act, 1954”:- This Act provides for severe punishment for adulteration of food articles. In the case of sale of adulterated food which is injurious to health and likely to cause death, life imprisonment with a minimum fine of Rs. 3000 may be payable.
“Essential Commodities Act, 1955:- Under this Act, the Government has power to declare any commodity as essential in the public interest. Thereby the Government can control the production, supply and distribution of the trading of such commodities. It also provides for action against anti-social activities of profiteers, hoarders and black-marketers.
20. Explain any two possible areas of self employment giving any two examples of each. 4
Ans. Two possible areas of self employment are:-
1) Small scale retail business:- Single owners can easily start and manage small business units profitably with the help of one or two assistants. It can be a grocery store, stationery.
2) Providing services based on individual skills:- Services which can be rendered to customers by individuals on the basis of specialized skill can also be taken up by way of self employment. For example, repairing bicycles and scooters, watches and clocks.
21. This form of business organisation exists under Hindu law and is governed by the law of succession. Identify it and state its features. (any four) 5
Ans. Hindu Undivided Family Business, this form of business organisation exists under Hindu law and is governed by the law of succession.
The following are the features of Hindu Undivided Family:-
(a) Membership by birth:- Membership of a Joint Hindu family business is automatic by birth of a male child.
(b) Management:- The management vests in the Karta, the eldest member of the family.
(c) Liability:- The Karta has unlimited liability, i.e. even his personal assets can be used for payment of business dues.
(d) No Maximum limit:- There is no restriction on the number of coparceners of the HUF business.
22. Explain Post Office Monthly Income scheme and Post Office Time Deposit Account. 5
Ans. Post Office Monthly Income Scheme:- Under this scheme a fixed sum of money is deposited for six-years and the depositors get the interest on it every month. A minimum amount of Rs. 1,500/- and maximum of Rs. 4.5 lakh in individual account and Rs. 9 lakh in case of joint account can be deposited. In addition to interest the deposit amount also earns bonus at the rate of 5% which is payable on maturity.
Post Office Time Deposit Account:- Any individual can open this account with a minimum balance of Rs. 200/-, without any maximum limit. The depositor makes deposit in lump sum and that amount matures after the expiry of a fixed period like one, two or five years. Interest on this account is given on annual basis but computed quarterly.
23. Explain teleconferencing and audio-conferencing as important means of communication? 5
Ans. Teleconferencing:- Teleconferencing is a system through which people interact with each other without physically sitting in front of others. People can hear the voice and see the picture of others and also respond to their queries even if sitting in different countries. It requires the use of modern electronic derives like telephone, computers, television etc.
Audio-Conferencing:- It is a two-way audio communication system in which the participants listen to the voice ad respond immediately sitting at different places. People may listen to the voice through radio or television and put their queries by using telephone.
24. Give the meaning of warehousing. Explain why warehousing is necessary giving any two reasons.
Ans. ‘Warehousing’ refers to the activities involving storage of goods on a large-scale in a systematic and orderly manner and making them available conveniently when needed. In other words, warehousing means holding or preserving goods in huge quantities from the time of their purchase or production till their actual use or sale.
Warehousing is necessary because of the following reasons.
(1) Seasonal Production:- We know that agricultural commodities are harvested during certain seasons, but their consumption or use takes place throughout the year. Therefore, there is a need for proper storage or warehousing for these commodities, from where they can be supplied as and when required.
(2) Seasonal Demand:- There are certain goods which are demanded seasonally, like woollen garments in winters or umbrellas in the rainy season. However, the production of these goods takes place throughout the year to meet the seasonal demand. So there is a need to store these goods in a warehouse to make them available at the time of need.
25. How can businessmen and government help in safeguarding the interests of consumers? Explain. 5
Ans. Businessmen and government help in safeguarding the interests of consumers:-
As regards businessmen, it is expected that producers, distributors, dealers, wholesalers as well as retailers should pay due regard to consumer rights in their own interest. They should ensure supply of quality goods and services at reasonable prices. To prevent unfair practices, associations of traders, chambers of commerce and industry and manufacturers’ associations should entertain consumer complaints against their members and take proper action against those guilty of malpractice.
For Government, consumer protection is a responsibility to be undertaken in the general interest of society. Enforcement of various laws and amending existing laws to protect consumer interests are required to be taken up in the light of viewpoints of consumer associations.
26. Define the terms profession and employment. Distinguish between profession and employment on any four basis. 6
Ans. Profession:- A person may not be an expert in every field. So, we require services of others who specialize in one field or other. For example, we need the services of doctors for our treatment, lawyers to get legal support etc. they are all engaged in profession.
Employment:- Employment refers to an occupation in which a person works regularly for another and gets wages/salary in return. Government servants, company executives, bank officials, factory workers are said to be in employment.
Differences between Profession and Employment
Nature of work
Specialized personal services for a fee with discretion to work.
Performing work according to the orders of the employer with no discretion.
Education and training in a specific field is necessary.
Specialised knowledge not necessary in all cases.
Limited capital required for establishment.
No capital required.
Fixed professional fees for services rendered.
Fixed wage or salary.
27. Explain the following methods of sale : 6
(a) Sale through tender (b) Wash sales
Ans. Modes of sale:
(a) Sale through tender:- This method of sale is normally found in the case of purchases made by big organisations or government agencies where the quantity of goods required and the amount involved are very large. A tender and is an undertaking to supply materials/goods indicating the terms and conditions of sale therein. This method of sale involves responses to tenders invited by intending purchasers with a view to selecting the supplier who offers the most competitive and favourable terms.
(b) Wash sales:- We might have seen advertisements mentioning ‘Grand Clearance Sale –Discounts up to 70%’ or ‘Summer Sale’ or ‘Annual Sale’ etc. These sales are generally conducted to clear surplus or old stocks. Some sellers periodically arrange such sales to dispose of stock. Mostly these sellers offer heavy discount.
28. State any four functions of a wholesaler? 6
Ans.:- Following are the functions, which a wholesaler usually performs.
1) Collection of goods:- A wholesaler collects goods from manufacturers or producers in large quantity.
2) Storage of goods:- A wholesaler collects the goods and stores them safely in warehouses, till they are sold out. Perishable goods like fruits, vegetables, etc. are stored in cold storage.
3) Distribution: A wholesaler sells goods to different retailers. In this way, he also performs the function of distribution.
4) Financing:- The wholesaler provides financial support to producers and manufacturers by providing money in advance to them. He also sells goods to the retailer on credit. Thus, at both ends the wholesaler acts as a financier.
29. Explain in brief any four responsibilities of a consumer. 6
Ans. Responsibilities of a consumer are:-
(a) Responsibility of self-help:- It is always desirable that a consumer should not depend on the seller for information and choice as far as possible. As a consumer, you are expected to act in a responsible manner to protect yourself from being deceived.
(b) Proof of Transactions:- The second responsibility of every consumer is that the proof of purchase and documents relating to purchase of durable goods should be invariably obtained and preserved.
(c) Proper claim:- Another responsibility that consumers are expected to bear in mind is that while making complaints and claiming compensation for loss or injury, they should not make unreasonably higher claims. Very often, consumers have to exercise their right to seek redressal in a court.
(d) Proper use of Product/services:- Some consumers, especially during the guarantee period, make rough use of the product, thinking that it will be replaced during the guarantee period. This is not fair on their part.
30. Enumerate and state any four qualities of a successful entrepreneur. 6
Ans. Qualities of a successful entrepreneur are:-
a) Initiative:- In the world of business, opportunities come and go. An entrepreneur has to be a man of action. He should be able to initiate action and take advantage of the opportunity.
b) Willingness to assume risk:- In any business there is an element of risk. It implies that a businessman may be successful or unsuccessful. In other words, it is not necessary that every business shall earn profit. However, an entrepreneur always volunteers to take risks to run a business and be successful.
c) Ability to learn from the experience:- An entrepreneur may commit mistakes. However, once a mistake has been committed, it should not be repeated as that entrepreneur, therefore, should have the ability to learn from the experience.
d) Motivation:- Motivation is the key to success. This is necessary for success in every walk of life. Once you get motivated to do something you will not rest unless you complete it. For example, sometimes you become so much interested in reading a story or a novel that you do not sleep unless you complete it.