Business Studies Class 11th

Chapter: Nature and Purpose of Business

Multiple Choice Questions

1. Which of the following is not an economic activity?

a. Production of goods. b. Trading in goods

c. Professional service d. Social service

2. Which of the following is not a business activity?

a. Production of goods b. Work in a factory for wages

c. Exchange of goods d. Transportation

3. Which of the following is not a characteristic of business?

a. Production b. Exchange or sale

c. Wages or salaries to investors. d. Risk element.

4. To what category of industries can sugar mill or oil refinery be put?

a. Primary b.Secondary

c. Tertiary d None of the above

5. Why should a business earn profits?

a. To provide returns to investors.

b. To provide funds for future growth

c. To increase the reputation of business

d. All the above

Very Short Answer Questions

1. “There are activities which are carried out to earn economic gains/ rewards.” What are they called?

2. Tata power is planting trees on the roadside of several big cities. Name the objective Tata power is engaged in.

3. What is the reward that the entrepreneur gets for risk bearing in business?

. Why is it of great importance in the business world?

Questions Based on HOTS (Higher Order Thinking Skills)

1. “The structure of business is composed of both industry and commerce.” Explain this

statement.

2. Identify any four obstacles in the smooth flow of goods between producers and consumers.How can they be removed?

Chapter: 2 Forms of Organisation

Multiple Choice Questions

1. Identify the type of organization which ensures separation of ownership and management:

a. Sole proprietorship b. Partnership

c. Company d. None of the above

2. Which of the following organization is not governed by a specific act?

a. Sole proprietorship b. Partnership

c. Company d. None of the above

3. Name the partner whose association with the firm is not known to the general public:

a. Sleeping Partner b. Active Partner

c. Nominal Partner d. Secret Partner

4. Cooperative society is called a democratic organization because of:

a. One share one vote b. One man one vote

b. No voting rights for members. d. all of the above

5. Qualification shares are subscribed by:

a. Directors of the company b. Auditors of the company

c. Bankers of the company c. Employees of the company

6. Which document is issued by a company to invite public to purchase its shares?

a. Articles of Association b. Memorandum of Association

c. Prospectus d. None of the above.

Very Short Answer Questions

1. Which sort of business is suitable for a small tailoring shop?

2. Can a public company commence business after obtaining Certificate of Incorporation?

3. “A number of signatories are required to the Memorandum of Association of a private company “.What is that number?

4. “A document containing rules and regulations for the internal management of the company”What is it called?

Long Answer Questions

1. Registration of a partnership firm is not compulsory, but it is desirable to get it registered. Give the reasons due to which a firm should be registered.

2. Account for the popularity of limited liability Company as a form of business organization in modern times.

.

Questions Based on HOTS (Higher order thinking skills)

1. An entrepreneur has developed a new product and does not want to share business secrets with anybody. Should he enter into partnership with somebody to raise capital for the business?

2. “A private company is a compromise between partnership and public company.” Explain.

Entrepreneurship

Chapter 1: Entrepreneurial Opportunities

Q1 Saurabh wants to start a new business. He is not sure of the type of business he should start. His friend suggested him to seek the help of professionals. He contacted a professional who asked Saurabh to pay a big amount for providing the repots and industry updates. Therefore he decided to search for the reports and industry updates himself. He scanned the relevant information from various national and international websites.
Identify and state the way that Saurabh is using for spotting the trend. Also state one more way which will help Saurabh in starting his business.

Q2 Abhiraj Chaudhary is into the business of manufacturing low - cost Diesel Cars in Germany. He is earning good profits and ambitiously considering overseas expansion. He scans the environment for finding out the opportunities and threats that may influence his current and future plans. He zeros down on India as a potential place for his business expansion as Indian Government has announced favourable trade regulations. On selling the first lot of cars in India, the Indian Government noticed that the emissions from these cars were above the permissible limit. The government asked him to make necessary modifications in his cars if he wanted to continue business in India. He readily agreed to meet the emission norms set by the Indian Government.
(a) Quoting the lines from the above para identify any two environmental factors.
(b) Also, state any two values which Abiraj Chaudhary tried to communicate to the Indian Society.

Q3 Naveen has just completed his B. Tech. and wants to start his own business, he knew that the demand for electricity in India was increasing day by day. Whereas its generation was not sufficient. Naveen shared his views with some of his friends and they all decided to start the business of electricity generation. They experimented various methods and ultimately succeeded in electricity generation through garbage. They all were happy as India is also facing the problem of garbage disposal.
(a) Identify and explain the source of ‘idea-field’ from where the idea had been generated by Naveen and his friends.
(b) Also explain two other sources of Idea-fields with the help of example.

Q4 Mr. Raghav had always wanted to manufacture an innovative, energy efficient fan. He was looking into various options and has finally narrowed it down to one option. He understands that the entire idea would have to follow a process. Identify and explain the process.

Q5 ‘It is the process of entrepreneurship which involves the translation of a useful idea into an application which has commercial value.’ Identify the process.

Accountancy Class 12

Chapter: 1

Fundamentals of Partnership and Goodwill

Q1 Vinod, Shubh and Gaurav were partners sharing profits in the ratio of 1:1:1. Their fixed capitals were Rs.2,00,000 each. Manager of the firm will be paid 10% commission after charging such commission. Vinod has advanced Rs.1,00,000 to the firm as loan on 1 July, 2012. Partnership deed is silent on interest on loan to the partner. A guaranteed amount of Rs.30,000 will be paid to Gaurav whether there is profit or loss incurred by the firm. Profit on 31st December, 2012 was Rs.25,000. Show the distribution of profit or loss to the partners

Q2 Vinod and Kumar are partners sharing profits and losses in the ratio of 3:2. Their capitals were Rs.1,00,000 and Rs.50,000 respectively. Rate of Interest on capital is 10% p.a. Show the distribution of profit when: Case 1: Partnership deed is silent as to interest on capital and profit for the year is Rs.30,000. Case 2: Partnership deed provides for interest on capital but there is loss Rs.20,000. Case 3: Partnership deed provides for interest on capital and profit for the year is Rs.20,000. Case 4: Partnership deed provides for interest on capital and profit for the year is Rs.9,000. Case 5: Interest on capital is a charge and profit for the year is Rs.9,000. Case 6: Interest on capital is a charge and loss for the year is Rs.5,000

Q3 A, B, C and D are partners sharing profits and losses in the ratio of 4:3:3:2. Their fixed capitals on 31.3.2010 were Rs.30,000; Rs.45,000; 60,000 and 45,000 respectively. After preparing the final accounts for the year ended 31.3.2011. it was discovered that interest on capital @12% p.a. was not allowed and interest on drawings amounting to Rs.1,000; 1,250; 750 and 500 respectively was not charged. Give necessary adjustment entry.

Q4. PK, MK and NK shared profits in the ratio of 3:2:1. The profits of the last three years were Rs.2,80,000, Rs.1,68,000 and Rs.2,12,000 respectively. These profits were by mistake, shared equally for all the three years. It is now decided to correct the error. Give entry

A partnership firm earned net profits during the last three years as follows: Years Profit 

2007-08 38,000

2008-09 44,000

2009-10 50,000

The Capital Employed in the firm throughout the above mentioned period has been Rs.80,000. Having regard to the risk involved, 15% is considered to be a fair return on the capital. The remuneration of all the partners during this period is estimated to be Rs.20,000 per annum. Calculate the value of goodwill on the basis of (i) Two years purchase of super profits earned on average basis during the above mentioned three years and (ii) Capitalization method.

Q.5 A, B and C were partners in a firm having capitals of Rs. 60,000, Rs. 60,000 and Rs. 80,000 respectively. Their current account balances were A- Rs. 10,000, B- Rs. 5000 and C- Rs. 2000 (Dr.). According to the partnership deed the partners were entitled to an interest on capital @ 5% p.a. C being the working partner was also entitled to a salary of Rs. 6,000 p. a. The profits were to be divided as follows:

         (i) The first Rs. 20,000 in proportion to their capitals.

         (ii) Next Rs. 30,000 in the ratio of 5:3:2.

         (iii) Remaining profits to be shared equally.

        During the year the firm made a profit of Rs. 1,56,000 before charging any of the above items.  

        Prepare the profit and loss appropriate on A/C.

Q.6 A and B are partners sharing profits in proportion of 3:2 with capitals of Rs. 40,000 and Rs. 30,000 respectively. Interest on capital is agreed at 5 % p.a. B is to be allowed an annual salary of Rs. 3000 which has not been withdrawn. During 2001 the profits for the year prior to calculation of interest on capital but after charging B’s salary amounted to Rs. 12,000. A provision of 5% of this amount is to be made in respect of commission to the manager.

                       

                         Prepare profit and loss appropriation account showing the allocation of profits.