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UNOFFICIAL ANSWER KEY
FIRST YEAR HIGHER SECONDARY SECOND TERMINAL EXAMINATION , DEC- 2022
PART III
SUBJECT: BUSINESS STUDIES WITH FM
Prepared by PRAKASH.P.N, Govt.HSS Nedumgolam, Kollam, 9447226258, 7012881563
CODE :FY-1048
80 SCORES 2 1/2 HOURS
Qn.
No
Sub.
Qns
Answer Key / Value Point Score Total
Score
1
2
3
4
5
6
7
8.
9.
10.
11.
12.
13.
14.
1. Answer any 8 questions from 1 to 10. Each carries 1 score.
(8x1=8)
a. Banking.
d. Flood
a. Kartha.
Railway, Post & Telegraph ( Any one)
Private Public Partnership.
d. Banking Services.
a. Any time service
b. Any where banking is possible (either at home, or office)
c. Creates financial discipline.
d. Less risk and greater security
e. Work load on branches reduced. (Any one)
Cash withdraw from ATM Counter, Goods purchased from Amazon,
(Any Meaning full answer ) (Any one )
Economic responsibility.
i)Dumping of non-degradable waste material into the land from
industrial units, hospitals, hotels, dwelling units,
ii)Dumping of toxic wastes on land causes land pollution
II. Answer any five of the following questions from 11 to 16. Each
carries 2 score. (5X2=10)
Business risks refers to the possibility of inadequate profits or even
losses due to uncertainties or unexpected events.
(a) They enjoy independence in their functioning and a high degree of
operational flexibility.
(b). Least government interference.
(c). Autonomous status.
(d). Helps in economic development.
(e). Stability (Any 2 points)
(a).Intangibility
(b).Inconsistency.
(c).Inseparability.
(d).Inventory.
(e).Involvement. (Any 2 points)
(i).Cash-on Delivery (CoD)
1
1
1
1
1
1
1
1
1
1
2
1+1
2x1=2
8
10
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15.
16.
17.
18.
19.
20.
21.
(ii).Cheque.
(iii).Net-banking Transfer.
(iv). Credit or Debit Cards (Any 2 points)
The transactions take place within the firm. It includes use of
computer networks in marketing, finance, production, purchase,
human resource,Research and Development departments....
Social responsibility refers to the obligations of the businessmen
which are desirable in terms of the objectives and values of our
society.
III.Answer any5 questions from 17 to 22. Each question carries 3
Scores. (5x3=15) .
(i). Economic Activity – because it is undertaken with the object or
earning money or livelihood.
(ii).Production or procurement of goods and service – In order to offer
the goods for consumption they must be either produced or procured
by the business enterprise.
(iii).Sale or exchange of goods and services – There should be sale or
exchange of goods or services between the seller and buyer.
(iv).Regular Dealings – Business involves dealing in goods and
services on a regular basis.
(v).Earning Profit – It is the main purpose of business.
(vi).Uncertainty of Return – No business can predicts its future profit
as it is uncertain. Also there is a possibility of loss being incurred.
(vii). Element of Risk – Every business is subject to risk due to
various reasons like change in fashion, technological changes,
increasing competition, fire, theft, accidents, etc... (Any 3 points)
(a).Equal voting rights.
(b).Limited Liability.
(c).Stable existence.
(d).Economy in operation.
(e).Support from government.
(f).Easy to form. (Any 3 points)
A company in which at least 51% of share capital is held by the
central government or by the State Government or governments or
partly by the central and partly by one or more State Government.
It means source from outside. In other words outsourcing refers to
hiring out non-core activities of business to third party specialists to
take advantage of their experience, expertise and efficiency in
performing such activities.
This refers to purely voluntary obligation that an enterprise assumes,
for instance, providing charitable contributions to educational
institutions or helping the affected people during floods or
earthquakes.
2x1=2
2
2
1x3=3
1x3=3
3
3
3
3
15
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22.
23.
24.
25.
Business ethics refers to the moral principles followed by a
businessman in his dealings with the people and it involves better
quality, fair price, justice, courage, thrift etc. Business ethics helps to
win the confidence of customers which will ensure the prosperity and
progress of the business.
IV. Answer any 4 of the following questions from 23 to 27 . Each
carries 4 Scores (4X4=16)
The written document which contains all the terms and conditions of
partnership is called partnership deed. It is also known as the “Articles
of Partnership”.
Contents of Partnership Deed
1. Name of the firm
2. Names and addresses of all partners
3. Nature and place of business
4. Date of Commencement of partnership
5. Duration of partnership, if any
6. Capital contribution by the partners
7. The amount which can be withdrawn by each partner
8. Rules regarding operation of bank accounts
9. Division of profits or losses
10. Interest on capital or drawings, if any (Any 4 contents)
(i) The funding of these enterprises come directly from the
Government Treasury and are an annual appropriation from the budget
of the Government.
(ii) They are subject to accounting and audit controls applicable to
other Government activities.
(iii) The employees of the enterprise are Government servants.
(iv) It is generally considered to be a major subdivision of the
Government department and is subject to direct control of the
ministry.
(v) They are accountable to the ministry. (Any 4 points).
a. Huge capital – They can have large capital investment as they are
running large scale business units.
b. Foreign collaboration – Global enterprises usually collaborate with
Indian companies, both private and public sector, by this both the
parties will be benefited by sharing technology, brand name etc.
c. Advanced technology – MNCs are able to provide world class
products of international standards by using advanced technology in
the areas of production, marketing etc.c. Advanced technology –
MNCs are able to provide world class products of international
standards by using advanced technology in the areas of production,
marketing etc.
d. Marketing strategies – They adopt aggressive marketing techniques
to increase the sales in a short period.
e. Expansion of market territory – They can extent their markets very
easily to the foreign countries as they are running the branches in
various nations.
f. Product innovation – Their products are always highly innovative as
2
1/2 x4
=2
1x4 =4
1x4=4
2
16
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26.
27.
28.
29.
they are running their own research and development wing for
developing new products and superior designs for existing products.
g. Centralized control. (Any 4 points)
a. Specialized Banks – Organized to render specific services to the
public. Eg., Foreign Exchange Banks, Industrial Banks, Export-Import
(EXIM) Banks etc.
b. Joint Life Policy – Policy taken out jointly by two or more persons.
Premium can be paid jointly or by any of them in instalment or lump
sum. This policy matures either on the death of any of the assured or
at the expiry of the period.
1. Ease of formation – It is very easy to start due to less legal
formalities and with a limited investment.
2. Convenience – Internet offers the convenience of 24 hours business.
3. Speed – Internet allows faster services.
4. Global reach – It provides a boundary less market.
5. Movement towards a paperless society – Use of internet has
considerably reduced dependence on paperwork.
V.Answer any 3 of the following questions from 28 to 31. Each
carries 5 Scores. (3x5 =15) .
The activities which assist trade are called aids to trade or Auxiliaries
to Trade. It includes Transport, Banking, Insurance, Warehousing,
Advertising etc. These service enterprises facilitate movements,
storage, finance, risk coverage and sales promotion of goods.
a.Transport and Communication – Usually production takes place in
certain locations and consumption all over the country. This is
removed by transport.
b. Banking and Finance – All business concerns need fund for
acquiring assets, raw materials and meeting day today expenses. It is
removed by Banks and financial institutions.
c.Insurance – In business, there are a lot of chances of risks such as
damage to property and human resource (employees), such as fire,
earthquake, theft, damage of goods in stock and transit.
d. Warehousing – Production is always in anticipation of future
demands, so that the products are to be kept in good condition until
they are sold.
e. Advertising – It is an important device for promoting sales. (Any 4)
1. Artificial Person – A company is created by law and exists
independent of its members and it can own properties, borrow funds,
enter into contracts in its own name, but it is not a natural person.
2. Separate Legal Entity – As the company is a registered body, it is
treated as a legal person and its assets and liabilities are separate from
those of its owners.
3. Formation – Formation of a company is a time consuming and
expensive process as it involves the preparation of several documents
and the registration is compulsory under Companies Act 2013 or any
other previous company laws.
2
1x4=4
1
1x4=4
1x5=5
15
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30.
31.
4. Perpetual Succession – A company is created by law and hence only
the law can bring an end to its existence, i.e. the death, insanity,
insolvency or lunacy of members does not affect the life of the
company.
5. Control – The owners of a company are the members or
shareholders, whereas the management and control is vested in the
hands of directors elected by the members.
6. Liability – The liability of members is limited to the extent of their
capital contribution only.
7. Common Seal – A company may or may not have a common seal.
As it is an artificial person it cannot sign documents for itself.
Therefore a common seal is used for its signature.
8. Risk bearing – The risk of loss in a company is borne by all the
shareholders, so that it will not become a heavy burden to them.
(Any 5 points)
1. Utmost Good Faith – While entering into a contract of insurance, all
the material facts are to be disclosed, otherwise it will become void.
2. Insurable Interest – The insured must have an interest on the subject
matter of insurance, otherwise the contract of insurance become void.
E.g. a person who has advanced money on the security of a house, has
an insurable interest on that house.
3. Indemnity – All insurance except life insurance and personal
accident insurance are based on the principle of indemnity. Here the
insured is entitled to get only the actual amount of loss suffered by
him and it will not be a source of profit.
4. Causa Proxima (Proximate Cause) – It means the nearest cause. It
says that an insured can recover the loss only when it is caused by any
of the risk insured against.
5. Subrogation – This principle states that, after the payment of loss to
the insured on the property, the whole right of such property is entitled
with the insurer. This right is exercised by the insurer to earn any
compensation for the damages on the property either from the party
who were responsible for such damages or by the sale of such
property to some others. This is because the insured should not make
profit by selling the damaged property.
6. Contribution – This principle applies only when the same subject
matter is insured with different insurers, here the actual amount of loss
is divided among various insurers.
7. Mitigation of Loss – It is the duty of the insured to take preventive
measures to minimize the loss of the property. If any expenses are
incurred by him for such activities, he is entitled to get that much of
amount along with the compensation from the insurance company.
(Any 5 points)
(i) Justification for existence and growth.
(ii) Long-term interest of the firm.
(iii) Avoidance of government regulation.
(iv) Maintenance of society.
(v) Availability of resources with business.
(vi) Converting problems into opportunities.
(vii) Better environment for doing business.
1x5=5
1x5=5
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