CBSE Sample Papers Class 11 Business Studies

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CBSE Sample Paper class 11 Business Studies

The CBSE Sample Papers 2025 for Class 11 Business Studies reflect some important changes this year. CBSE has updated the marking scheme and blueprint for the 2024-25 academic session, incorporating a shift towards more case study-based questions. While there are no numerical questions in the Business Studies exam 2024-25, students will encounter various case study questions that test their practical knowledge and application of concepts. To help you prepare effectively, myCBSEguide App and myCBSEGuide Website offers Class 11 Business Studies sample papers in PDF format for free download. These resources will ensure that you are well-prepared to tackle the new exam pattern with a focus on real-world scenarios. The Examin8 App and Examin8 Website are powerful tools for teachers to create customized exams and practice papers. With features that allow personal branding, including names and logos, educators can easily design and manage assessments. Both platforms help streamline exam preparation, making them essential resources for teachers and schools.

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CBSE Sample Papers Class 11 Business Studies 2025

The myCBSEguide App and myCBSEGuide Website offers CBSE Class 11 Business Studies Sample Papers for the academic session 2024-25, available for free download in PDF format. With the recent updates in the CBSE exam pattern, students will face a mix of objective and subjective questions, requiring a deeper understanding of the concepts. As Business Studies is a dynamic subject, it is essential for students to focus on real-life situation-based questions, which are commonly asked in exams. To help you prepare effectively, download the Business Studies Sample Papers from myCBSEguide and practice with detailed solutions to enhance your exam readiness. For teachers, the Examin8 App and Examin8 Website is a powerful tool that allows you to create custom mock tests and practice papers with your own name and logo.

CBSE class 11 Business Studies Sample Papers

The Class 11 marking scheme has undergone some significant changes this year, reflecting a shift towards more objective-based questions. CBSE has introduced a higher number of competency-based questions, which include both objective and subjective formats. These questions test not only students’ knowledge but also their application and analytical skills. To adapt to this new format, we recommend that students download CBSE Sample Papers Class 11 Business Studies model question papers from the myCBSEguide App and myCBSEGuide Website. Practicing these model papers will help students get familiar with the updated exam structure and improve their problem-solving abilities.

Class 11 – Business Studies
Sample paper – 01 (2024-25)

Maximum Marks: 80
Time Allowed: : 3 hours

General Instructions:

This question paper contains 34 questions.
Marks are indicated against each question.
Answers should be brief and to the point.
Answers to the questions carrying 3 marks may be from 50 to 75 words.
Answers to the questions carrying 4 marks may be about 150 words.
Answers to the questions carrying 6 marks may be about 200 words.
Attempt all parts of the questions together.

Business transaction taking place within the geographical boundaries of a nation is known as a domestic or national business. It is also referred to as internal business or home trade. Manufacturing and trade beyond the boundaries of one’s own country is known as international business.
Permitting another party in a foreign country to produce and sell goods under your trademarks, patents, or copyrights in lieu of some fee is another way of entering into international business. This is through ________.
a) sale of goodwill
b) sale of copyrights
c) sale of trademark
d) licensing and franchising
State the full form of RWED:
a) Rural and Women Experiential Development
b) Rural and Women Employment Development
c) Rural and Women Engagement Development
d) Rural and Women Entrepreneurship Development
Stages in the formation of a public company are in the following order:
1. Promotion, Incorporation, capital subscription, commencement of business
2. Incorporation, Capital of Business, Capital Subscription Commencement of Business, Promotion
3. Promotion, Commencement of business
4. Capital Subscription, Promotion, Incorporation, Commencement of Business
a) D is correct
b) C is correct
c) B is correct
d) A is correct
Retail trade is the example of the type of internal trade on the basis of:
a) Levels
b) Quantity
c) Quality
d) Relationship
Which of the following is incorrect regarding the types of manufacturing enterprises?
a) In a Small enterprise investment in plant and machinery is more than twenty-five lakh rupees does exceed five crore rupees.
b) In a Microenterprise investment in plant and machinery does not exceed twenty-five lakh rupees.
c) In a medium enterprise investment in plant and machinery is more than five crore rupees but does not exceed ten crores rupees.
d) In a Small enterprise investment in plant and machinery is more than twenty-five lakh rupees but does not exceed three crore rupees.
It is not an application of e-business:
a) Online trading
b) Online bidding
c) Contract R&D
d) Online procurement
Application for approval of name of a company is to be made to:
a) Government of India
b) Government of the State in which Company is to be registered
c) Registrar of Companies
d) SEBI
Which of the following is part of small scale sector?
a) Paper Products and Printing
b) Food Products
c) All of these
d) Cotton Textiles
Which of the following statements is false?
1. Long-term funds fulfil the financial requirements for a period exceeding 5 years.
2. Medium-term sources provide funds for a period of more than one year but less than five years.
3. Medium-term sources provide funds for a period of more than one year but less than three years.
4. Short-term funds are required for a period not exceeding one year.
a) Only C is false
b) Only D is false
c) Only B is false
d) Only A is false
Assertion (A): A Company has Perpetual Existence.
Reason (R): The existence of a company is not affected by the death, retirement, resignation, insolvency or insanity of its members.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
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1. Which of the following statements is correct for wholesalers:
  a) They undertake additional activities.
  b) They generally take the title of the goods and bear the business risks in their own name
  c) They engage in buying and selling of goods
  d) All of these
2. To sell ready-made garments for children, men, women, etc. is the example of:
  a) General Store
  b) Single-line shop
  c) Departmental Store
  d) Single-product shop
3. The company form of organization is governed by which of the following Acts:
  a) The Companies Act, 1866
  b) The Companies Act, 1913
  c) The Companies Act, 2013
  d) The Companies Act, 1956
4. Which of the following comes under Modern Small Industries?
  a) Khadi
  b) Handicrafts
  c) Coir
  d) Powerlooms
5. Social interests and business interests are ________.
  a) Contradictory
  b) Complementary
  c) Counteractive
  d) Conflicting
6. Assertion (A): Rate of Interest on Savings account is lower than Fixed Deposit account.
  Reason (R): Savings account is most suitable for small households’ savings.
  a) Both A and R are true and R is the correct explanation of A.
  b) Both A and R are true but R is not the correct explanation of A.
  c) A is true but R is false.
  d) A is false but R is true.
7. Which of the following is part of Village and Small Industries Sector?
  a) Handlooms
  b) All of these
  c) Sericulture
  d) Handicrafts
8. Since the main objective of the business is to earn profits, which of the following is not an appropriate method of earning profits:
  a) All of these
  b) Inflating the prices
  c) Selling a good quality product at reasonable prices
  d) Selling low-quality product at low prices
9. In which year National Small Industries Corporation(NSIC) was set up?
  a) 1953
  b) 1954
  c) 1956
  d) 1955
10. A Government Company may be formed as which of the following:
  a) Public Company
  b) Private Company
  c) Either Public or Private Company
  d) Neither Public nor Private Company
11. Explain in brief why nations are involved in foreign trade?
12. Santosh and Sandeep both completed their MBA education and thought of making business as their career. Santosh set up a Flour Mill, while Sandeep started the Wholesale Business of ‘Ghee’. Both the friends are engaged in creation of utility in their respective business.
  Point out the creation of utility being done by each of them.
  OR
  Explain any two business activities which are auxiliaries to trade.
13. A thread manufacturing company open shop at different locations in India. He sells goods on cash basis only. The shops have identical decorations. The prices of goods are fixed. In this way they eliminate unnecessary middlemen thus benefiting the consumers.
  1. Identify the type of shop referred to.
  2. State any of its two merits.
14. After reading an advertisement in the newspaper about an upcoming public issue of preference shares of a pharmaceutical company, Tushar made up his mind to invest money in that issue. Later on, he discussed his plan with his friend Vikesh who he is a stock broker. Vikesh, on the contrary, advised him to invest in equity instead.
  Give any three possible reasons because of which Vikesh wants Tushar to invest in equity and not in preference shares.
  OR
  After completing the studies, Priyanka decided to start her own business of hand made chocolates. After analyzing all the pros and cons, she came to the conclusion that the total funds required are Rs. 12,00,000. She had Rs. 2,00,000 in her savings bank account. As these funds were insufficient to start the business, she approached Axis Bank for obtaining a loan of Rs. 10,00,000. The loan was approved within a month. On the basis of the given case, answer the following questions:
  1. Categorize the two types of funds on the basis of ownership.
  2. Out of the two sources of funds, which one is a permanent source of finance?
  3. Which source of funds requires a legal obligation to pay interest at a fixed rate at regular intervals?
15. Rajinder Singh and his brother Ravinder Singh own a large scale retail outlet at a central location in Amritsar. They deal with varied kinds of products like textiles, footwear, cosmetics, etc. which are sold through different divisions within the establishment.
  In the context of the above case answer the following questions:
  1. Identify the type of retail outlet being described in the above lines.
  2. State any two merits and two limitations of the type of retail outlet as identified in part (a) of the question.
  OR
  Write a note on the Automatic Vending Machine.
16. Annaya was doing research on the banking sector for her assignment. While browsing through the website of Reserve Bank of India, she came across a specimen of a type of Hundi which is like any other bearer instrument and is payable to the holder or bearer.
  In the context of the above case answer the following:
  1. What is a Hundi?
  2. Identify the type of Hundi being described above.
  3. Describe briefly any two other types of Hundi.
  OR
  Give any three points of difference between business and employment.
17. How do online transactions increase the risk of anonymity and non-traceability of parties?
18. List the names of some enterprises under the public sector and classify them.
19. Britannia Industries Ltd. is committed to helping secure every child’s right to growth and development through good food every day. The company is working in partnership with Global Alliance for Improved Nutrition (GAIN) and the Naandi Foundation to supply iron-fortified Tiger biscuits to supplement the Mid-Day Meal program in schools. Iron deficiency among Indian children is a key cause of school dropouts as well as decreased productivity. In keeping with its core essence of “Swasth Khao Tan Man Jagao”, the company constantly strives to find sustainable opportunities to drive home the message of nutrition and good food habits among children at the right age.
  In the context of the above case answer the following questions:
  1. Identify the kind of social responsibility being discharged by Britannia Industries Ltd.
  2. Briefly explain any two other kinds of social responsibilities.
20. Discuss any five incentives provided by the Indian Government for industries in backward and hilly areas.
21. India is considered to be one of the leading exporters of leather goods. The main leather items include leather bags, belts, leather pouches, and handbags. Different kinds of gift items like key rings, leather journals, and leather-covered notebooks also have a huge demand in foreign countries. Numerous small scale and large scale enterprises in India are constantly engaged in exporting leather goods to various foreign countries like Germany, UK, Italy, Hong Kong, France, Spain, Netherlands, UAE, Belgium, and China.
  In the context of the above case answer the following:
  1. Briefly outline any two benefits available to the business firms who are engaged in leather export.
  2. How do the different countries engaged in international trade of leather goods stand to gain (any two points)?
  OR
  Rekha Garments has received an order to export 2000 men’s trousers to Swift Imports Ltd, located in Australia. Discuss the procedure that Rekha Garments would need to go through for executing the export order.
22. Rakesh, Sudhir, and Mohit have mutually decided to set up a new small scale handicraft factory in a remote rural area in Haryana. As it will not only help to meet the growing demand for their products but also generate different kinds of employment opportunities in the village and foster its economic development. They have decided to promote their business in the form of partnership. Sudhir’s association with the firm will be hidden from the general public. Mohit will not take part in the day to day activities of the business due to health issues. However, Rakesh will take actual part in carrying out the business of the firm on behalf of other partners. In the context of this case answer the following questions:
  1. Briefly explain the various types of partner which are being mentioned in the above paragraph.
  2. Identify any two values which are being fulfilled by the firm.
  OR
  A syndicate of three persons namely, Akanksha, Ann, and Devesh was formed to purchase the Tech Solutions Company and to promote and register a company to which the Tech Solutions Company property was to be resold. At that time the Tech Solutions Company was in a bad shape. The syndicate first bought the debentures of the Tech Solutions Company at a discount. Then they brought the company for Rs. 44,00,000. Out of this money, provided by them, the debentures were repaid in full and a profit of Rs. 40,000 was made thereon. They promoted a new company and sold Tech Solutions Company to it for Rs. 54,00,000. The profit of Rs. 10,00,000 was revealed in the prospectus, but not the profit of Rs. 40,000. It was held that the profit of Rs. 40,000 was a secret profit made by the syndicate as promoters of the company.
  In the context of the above case answer the following questions:
  1. ‘Promoters of a company enjoy a fiduciary position with the company, which they must not misuse.’ Explain with reference to the above case.
  2. What course of action can the company take in the event of non-disclosure of any secret profits made by the promoters?
23. Rakesh plans to set up an environmentally-friendly textile factory. He plans to use fossil fuels to make paint, plastics, and polymers. Since the wastewater from textile processing and dyeing contain residues, he has also decided to ensure its appropriate treatment before it is released into the environment. He is planning to approach a Special Financial Institution to raise loans for his business.
  In the context of the above case answer the following questions:
  1. Describe briefly any two Special Financial Institutions in India.
  2. State any two merits of raising loans from financial institutions.
  3. List any two values that Rakesh wants to com m unicate to society.
24. Mr. Jitendra, the owner of ‘Jitendra Steel Industry’ does the wholesale trade of utensils. Some of the utensils are made in his factory itself and some others, he purchases from other manufacturers. Every day, he has to make payments to several other traders. He wants that as soon as he deposits money in his bank it should be credited to the account of the receiver without any delay. On enquiring from the bank, he learned that through e-banking there are two systems available for sending money from one place to another. According to one system, transfer of money from one bank to another is done in batches and according to the other system, transactions are done one after the other in continuity.
  State the names of these two systems. Explain the system in detail which will be useful to Mr. Jitendra.

Boost your exam preparation with the myCBSEguide App and myCBSEGuide Website, the ultimate resource for CBSE, NCERT, JEE (Main), NEET-UG, and NDA exams. This app provides a wide range of study materials, including practice papers, chapter-wise solutions, NCERT Exemplar solutions, and quick revision notes to ensure you’re fully prepared for your exams. It’s the best companion for students aiming for top scores in their board and entrance exams. CBSE Sample Papers Class 11 Business Studies offer a comprehensive review of all topics covered in the syllabus.Teachers can also benefit from the Examin8 App and Examin8 Website, which enables them to create custom exam papers with their personal branding, including name and logo. This tool helps educators design effective, personalized assessments for their students.With myCBSEguide and Examin8, both students and teachers can streamline their study and teaching processes for optimal results. Download these apps today to start preparing smarter! Solving CBSE Sample Papers Class 11 Business Studies boosts students’ confidence by exposing them to different types of questions.

Class 11 – Business Studies
Sample paper – 01 (2024-25)

Solution

1. 1. 1. (d) licensing and franchising
      Explanation: Permitting another party in a foreign country to produce and sell goods under your trademarks, patents or copyrights in lieu of some fee is another way of entering into international business is through licensing and franchising.
    2. (d) Rural and Women Entrepreneurship Development
      Explanation: RWED stands for Rural and Women Entrepreneurship Development.
    3. (d) A is correct
      Explanation: The formalities of the formation of a company can be divided into four distinct stages, which are:
      1. Promotion
      2. Incorporation
      3. Subscription of capital
      4. Commencement of business.
    4. (b) Quantity
      Explanation: On the basis of Quantity.
    5. (d) In a Small enterprise investment in plant and machinery is more than twenty-five lakh rupees but does not exceed three crore rupees.
      Explanation: In a Small enterprise investment in plant and machinery can be more than twenty-five lakh rupees but does not exceed five crore rupees.
    6. (c) Contract R&D
      Explanation: Contract R&D is an outsourcing activity not cover under e-business
    7. (c) Registrar of Companies
      Explanation: Before commencing the incorporation of a company, the directors of the company must acquire the proposed name must be approved by the Registrar of Companies in the Ministry of Corporate Affairs.
    8. (c) All of these
      Explanation: Food products, cotton textiles, paper products, and printing are part of the small scale sector.
    9. (a) Only C is false
      Explanation: Medium-term sources provide funds for a period of more than three year but less than five years.
    10. (a) Both A and R are true and R is the correct explanation of A.
      Explanation: Since a company continues even after the death, insolvency of its members. It is not affected by the retirement, resignation, insanity of its members, its existence is perpetual.
      To prepare effectively for your exams, download the myCBSEguide App and myCBSEGuide Website. This app offers a comprehensive range of study materials, including sample papers, solutions, and practice questions for CBSE, NCERT, JEE (Main), NEET-UG, and NDA exams.CBSE Sample Papers Class 11 Business Studies offer valuable insights into the types of case study-based questions likely to appear in the exam. It’s designed to help students build a solid foundation and enhance their exam readiness.Teachers can also take advantage of the Examin8 App and Examin8 Website to create custom exam papers with their name and logo. This powerful tool allows educators to generate personalized assessments, making it easier to track student progress and tailor their teaching approach.Whether you’re a student or a teacher, myCBSEguide and Examin8 are the perfect apps to streamline learning and teaching. Download them now to start preparing for success! You can download CBSE Sample Papers Class 11 Business Studies in PDF format from various online platforms.
1. 1. (d) All of these
    Explanation: Wholesalers purchase in bulk from manufacturers and sell in small lots to retailers or industrial users. They do not sell products to ultimate consumers.
  2. (b) Single-line shop
    Explanation: This is an example of Single-line shop.
  3. (c) The Companies Act, 2013
    Explanation: The Companies Act, 2013 governs the company form of organization.
  4. (d) Powerlooms
    Explanation: Powerlooms comes under modern small industries.
  5. (b) Complementary
    Explanation: Complementary, because both are linked to each other.
  6. (b) Both A and R are true but R is not the correct explanation of A.
    Explanation: Rate of interest on savings account is lower than Fixed deposit account because it provides more advantages. One can withdraw money from Savings account as and when required which is not the case with FD.
  7. (b) All of these
    Explanation: The village and small industries (VSI) sector consist broadly of traditional industries (viz. handlooms, khadi, and village industries, sericulture, handicrafts, and coir) and modern small scale industries including ‘tiny’ units and power loom.
  8. (b) Inflating the prices
    Explanation: Inflating the prices may earn profit in the short run but it is not acceptable in the long run, as it is considered as malpractice.
  9. (d) 1955
    Explanation: National Small Industries Corporation Limited (NSIC) is a Mini Ratna PSU established by the Government of India in 1955 It falls under Ministry of Micro, Small & Medium Enterprises of India.NSIC has set up training cum incubation centre managed by professional manpower.
  10. (c) Either Public or Private Company
    Explanation: A government company may be formed as a private company or a public company.Boost your exam preparation with the myCBSEguide App and myCBSEGuide Website, the ultimate resource for CBSE, NCERT, JEE (Main), NEET-UG, and NDA exams. This app provides a wide range of study materials, including practice papers, chapter-wise solutions, NCERT Exemplar solutions, and quick revision notes to ensure you’re fully prepared for your exams. It’s the best companion for students aiming for top scores in their board and entrance exams. CBSE Sample Papers Class 11 offer a comprehensive review of all topics covered in the syllabus.Teachers can also benefit from the Examin8 App and Examin8 Website, which enables them to create custom exam papers with their personal branding, including name and logo. This tool helps educators design effective, personalized assessments for their students.With myCBSEguide and Examin8, both students and teachers can streamline their study and teaching processes for optimal results. Download these apps today to start preparing smarter! Practicing CBSE Sample Papers Class 11 Business Studies helps students improve their time management skills for the exam.
Following are the reasons for international business:
1. International specialization: Each country finds it advantageous to produce the goods in which it is specialized at home and procuring the rest through trade with other countries that the other countries can produce at a lower cost due to specialization.
2. Differences in natural resources and geographical conditions: Abundance of natural resources and favorable geographical conditions of a country brings a difference in its production pattern as compared to others.
3. Cost of production: Differences in production cost gives an advantageous position in the countries producing at low cost than others to export it to other countries and importing the goods for which they have high production cost.
4. Earning of foreign exchange: International business helps a country to earn foreign exchange which can be used for payment for imports of capital goods, technology, petroleum, fertilisers, etc
1. Santosh is creating the Form of Utility because he is doing the work of changing the Form by making Flour from Wheat.
2. Sandeep is engaged in the creation of Possession Utility because he purchases finished goods and sells it off to the retailers.
OR
Two business activities which are auxiliary (aids) to trade are as follows:
1. Transport and Communication: It involves all those activities which are undertaken for the movement of goods from one place to another. For example, Tea is mainly produced in Assam but is required for consumption in different parts of the country. The hindrance of the place is eliminated by transport like road, rail or coastal shipping.
2. Warehousing: It is concerned with storing goods in order to facilitate their supply to the market at the right time. Warehousing removes hindrance of time as it facilitates the availability of goods as and when required. It creates time utility.
1. Chain stores: Chain stores are a network of retail shops that are owned by large merchandising organizations having many branches located throughout specific areas of a country.
2. Two merits of chain stores are:
  1. Economies of Scale: Goods for all multiple shops are purchased by the head office. Such bulk-purchasing results in several economies like heavy discounts from suppliers, saving in transport costs, etc.
  2. Elimination of Middlemen: By selling goods directly to the consumers, the chain store organization is able to eliminate unnecessary middlemen.
The various advantages of investing in equity shares over preference shares are:
1. The investors who are willing to assume higher risks for higher returns prefer equity shares over preference shares.
2. The equity shareholders enjoy voting rights, whereas no such right is attached to preference shares.
3. The return on equity is more if the profits of the company are high, whereas the return on preference shares is fixed.
OR
1. On the basis of ownership, Rs. 2,00,000 in Priyanka’s Savings bank account constitute the Owner’s Funds, while loan of Rs. 10,00,000 constitute the Borrowed Funds.
2. Owner’s Funds of Rs. 2,00,000 is a permanent source of finance.
3. Borrowed Funds of Rs. 10,00,000 require a legal obligation to pay interest at a fixed rate at regular intervals.
1. The type of retail outlet is described in the above lines is a departmental store.
2. The two merits of a departmental store are as follows:
  (i) Attract a large number of customers since they are typically located in central places.
  (ii) Convenience in buying as a wide variety of products are available under one roof.
  The two limitations of a departmental store are as follows:
  (i) High operating cost is incurred in pursuit of offering more services to the customers which are eventually passed on to the consumers in terms of higher prices.
  (ii) High possibility of loss as the scale of operation and operating costs are high.
OR
Vending machines are machines that help in selling products like milk, soft drinks, platform tickets, etc. The latest development under this concept is Automated Teller Machines (ATM) in the banking sector. This machine has made it possible to withdraw money any time without visiting any bank. Vending machines are especially useful for selling prepacked goods at a low price, having high turnover and are of uniform in size and weight.
1. A Hundi is a negotiable and transferrable financial instrument that evolved during Medieval India in order to facilitate trade and credit transactions.
2. Dhani-jog Hundi is the type of financial instrument being described above.
3. The other two types of Hundi are:
  1. Firman-jog Hundi: It is similar to a cheque payable on order either to the person whose name is mentioned in the Hundi or to any person so ordered by him. No endorsement is required on such a Hundi. It is just opposite of Dhani-jog hundi which is payable to the bearer only.
  2. Darshani Hundi: It is similar to a demand bill and is payable on sight. It needs to be presented for payment within a reasonable time after its receipt by the holder.

Business	Employment
Commencement of business depends on entrepreneur’s decision and other legal formalities, if necessary.	It commence on getting an appointment letter and entering into service agreement.
It involves providing goods and services to the public.	It involves performing work as per service contract or rules of service.
It does not require any minimum qualification.	It requires qualification and training as prescribed by the employer.

Internet transactions occur between cyber personalities. As such, it becomes difficult to establish the identity of the parties. Moreover, one does not know even the location from where the parties may be operating. It is riskier, therefore, transacting through internet. e-business is riskier also in the sense that there are additional hazards of impersonation (someone else may transact in your name) and leakage of confidential information such as credit card details. Then, there also are problems of ‘virus,’ and ‘hacking,’ that you must have heard of. If not, we will be dealing with security and safety concerns of online business.
For the control and management of the day-to-day business of public sector enterprises, they can be classified into three categories which are as follows:
1. Departmental Undertaking: This is the oldest form of public sector enterprise. It is managed by government officials as one of the government departments. In India, railways and post and telegraph are working as government departments. Similarly, strategic industries like defence and atomic power also work as departmental undertaking.
2. Statutory Corporation: It is a corporate body with a separate legal existence, set up under a special Act of parliament or of the state legislature. In India, Reserve Bank of India (RBI), Food Corporation of India (FCI), Life Insurance Corporation (LIC) and Air India are some important examples of statutory corporations.
3. Government Company: According to Section 2(45) of the Companies Act, 2013, a government company means any company in which not less than 51 per cent of the paid-up capital is held by the central government or by the state government or partly by central government and partly by one or more state governments and includes a company which is a subsidiary of a government company. In India, Steel Authority of India Ltd. (SAIL), Bharat Heavy Electricals Ltd. (BHEL) and Bharat Earth Movers Ltd. (BEML) are the leading examples of government companies.
1. Discretionary responsibility is being discharged by Britannia Industries Ltd. as it is working towards the welfare of the children purely on a voluntary basis.
2. The other two other kinds of social responsibilities are stated below:
  1. Economic responsibility is the primary responsibility of a business enterprise and relates to the production of goods and services that are as per the needs and wants of society and selling them at a profit.
  2. Legal responsibility means that every business must operate within the laws of the land.
Incentives provided by the Government for industries in backward and hilly areas are:
1. Land: It is provided by the government at concessional rates to people in the backward region. Although the terms and conditions may vary, some industries are charged with rent in the initial years and some are allowed to pay in installments. This makes it easier to set up a business at a low cost.
2. Water: It is supplied for 5 years on a no-profit and no-loss basis with 50% concession or exemption from water charges.
3. Power: It is an indispensable requirement for the functioning of industries. Thus, it is supplied at a 50% concessional rate, whereas some states may exempt units from paying in the initial years.
4. Sales tax: Many states exempt industries from paying sales tax, while some states extend the exemption for five years.
5. Octroi: It is scrapped by many states.
6. Raw materials: Preference is given to backward areas with respect to allotment of scarce resources.
1. The two benefits available to the business firms engaged in leather export are as follows:
  1. Prospects for higher profits for the business firms as they get an opportunity to sell their products in countries where prices are high.
  2. Increased capacity utilization may help the business firms to take advantage of economies of scale, which leads to a reduction in the production cost and increases per-unit profit margin.
2. The two ways in which different countries engaged in international trade of leather goods stand to gain are as follows:
  1. Improving growth prospects and employment potentials as the scope of production activities increase.
  2. Increased standard of living as it provides access to the products with better technology from other countries.
OR

Rekha Garments will have to adopt the following procedures given below to execute the export order.
1. As the exporter, it should first assess the credit worthiness of the importer. Swift Imports, through an enquiry. It should then ask for a letter of credit from the importer’s bank, guaranteeing to honour a draft of a specified amount drawn on it by the exporter.
2. Once Rekha Garments is assured that it will be paid for the goods, it will need to register itself and secure an Importer Exporter Code number in order to obtain an export license.
3. After obtaining the license, it should acquire pre-shipment finance from a bank in order to purchase raw materials to undertake production and packaging.
4. With the finance made available, Rekha Garments can procure the raw materials and other inputs required and start the production process.
5. After the goods are produced, Rekha Garments must get them inspected before exporting them. For this inspection, it must contact the Export Inspection Agency (EIA) or another designated agency and obtain a certificate of inspection.
6. The exporter then needs to secure excise clearance, for which it must submit an invoice to the regional excise commissioner. The excise commissioner then examines the invoice and, if satisfied, issues the excise clearance to the exporter.
7. Once the excise clearance is received, Rekha Garments needs a certificate of origin, which specifies the country in which the goods are being produced. It allows the importer to claim tariff concessions and other exemptions, if any.
8. The next step is for the exporter to submit an application to a shipping company for booking shipping space in a vessel. In the application, it must provide details such as the type of goods to be shipped and the port of destination. After the application is received, the shipping company will issue a shipping order to the captain of its ship to inform him or her that the specified goods will be received on board after the customs clearance.
9. The goods are then properly packed and labelled with all the necessary information such as the importer’s name, port of destination, and gross and net weight of the goods.
10. Once the goods are ready for export, Rekha Garments must insure the goods against perils of the sea or any related damage.
1. The various types of partner which are being mentioned in the above paragraph are:
  1. Rakesh (Active partner) – An active partner is the one who contributes capital, participates in the management of the firm, shares its profits and losses, and is liable to an unlimited extent to the creditors of the firm.
  2. Sudhir (Secret partner) – A secret partner is the one whose association with the firm is unknown to the general public. However, like other partners, he contributes to the capital of the firm, takes part in the management, shares its profits and losses, and has unlimited liability towards the creditors.
  3. Mohit (Sleeping partner) – Partners who do not take part in the day to day activities of the business are called sleeping partners. A sleeping partner, however, contributes capital to the firm, shares its profits and losses and has unlimited liability towards the creditors.
2. The two values which are being fulfilled by the firm are:
  1. Generating employment opportunities
  2. Raising the standard of living of people
OR
1. Promoters of a company are neither the agents nor the trustees of the company. Instead, they enjoy a fiduciary position with the company, which they must not misuse. In the above case Akanksha, Ann, and Devesh have made a secret profit of Rs. 40,000. The promoters can make a profit only if it is disclosed but must not make any secret profits. Fiduciary relationship means where one person places complete trust in another in regard to a particular transaction or one’s general affairs or business. The relationship is not necessarily formally or legally established as in a declaration of trust but can be one of moral or personal responsibility, due to the superior knowledge and training of the fiduciary as compared to the one whose affairs the fiduciary is handling.
2. In the event of non-disclosure, the company can cancel the contract and recover the purchase price paid to the promoters. It can also claim damages for the loss suffered due to the non-disclosure of material information.
1. 1. Industrial Finance Corporation of India (IFCI): It was established as a statutory corporation under the Industrial Finance Corporation Act, 1948 in July 1948. Its objectives include providing assistance to foster balanced regional development and encouraging new entrepreneurs to enter into the priority sectors of the economy. It has also contributed to the development of management education in the country.
  2. Industrial Credit and Investment Corporation of India (ICICI): Industrial Credit and Investment Corporation of India was set up in the year 1955 as a public limited company under the Companies Act. ICICI assists exclusively in the private sector towards the creation, expansion, and modernization of industrial enterprises. It has also promoted the participation of foreign capital in the country.
2. The two merits of raising loans from financial institutions are as follows:
  1. Procurement of loan from financial institutions enhances the goodwill of the borrowing company in the capital market.
  2. A loan from these institutions does not create much of a burden on the enterprise as it can be repaid in easy installments.
3. The two values that Rakesh wants to com m unicate to the society are:
  1. Environment sustainability
  2. Responsibility
The following are the two systems stated by the bank:
1. NEFT (National Electronic Fund Transfer)
2. RTGS (Real Time Gross Settlement)
The system named RTGS will be useful to Mr. Jitendra.
Real-Time Gross Settlement (RTGS): It refers to a funds transfer system where the transfer of funds takes place from one bank to another on a ‘Real Time’ and on ‘Gross’ basis. Settlement in ‘Real Time’ means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. ‘Gross’ settlement means the transaction is settled on a one-to-one basis without bunching or netting with any other transaction. This is the fastest possible money transfer system through the banking channel. The RTGS service for customers is available from 9.00 am to 4.30 pm on weekdays and from 9.00 to 1.30 pm on Saturdays as per RBI guidelines.
Features of RTGS:
The following are the features of RTGS:
1. All the bank branches in India are not RTGS-enabled. Only CBS-enabled bank branches can extend this facility.
2. RTGS transactions are processed continuously throughout business hours and not in batches.
3. The receiving (beneficiary) bank has to credit the customer’s account within two hours of receiving the fund’s transfer message.
4. Fees for RTGS vary from bank to bank.
5. The minimum transaction value for RTGS is ₹ 2 lakhs. There is no upper ceiling for RTGS transactions. To prepare effectively for your exams, download the myCBSEguide App and myCBSEGuide Website. This app offers a comprehensive range of study materials, including sample papers, solutions, and practice questions for CBSE, NCERT, JEE (Main), NEET-UG, and NDA exams. It’s designed to help students build a solid foundation and enhance their exam readiness.Teachers can also take advantage of the Examin8 App and Examin8 Website to create custom exam papers with their name and logo. This powerful tool allows educators to generate personalized assessments, making it easier to track student progress and tailor their teaching approach.Whether you’re a student or a teacher, myCBSEguide and Examin8 are the perfect apps to streamline learning and teaching. Download them now to start preparing for success! The CBSE Sample Papers Class 11 Business Studies cover all important topics from the syllabus and are designed to reflect the actual exam pattern.

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