AHSEC Class 11 Business Studies Solved Question Paper 2025, HS 1st Year Business Studies Solved Question Paper 2025 has been carefully prepared by subject experts to provide students with detailed and accurate solutions. Each answer is explained in a simple and structured manner, making it easy to understand and remember. This solved paper will not only help you in revising the complete syllabus but also guide you in understanding the correct way of writing answers in the exam. It is a highly useful resource for effective exam preparation and scoring better marks.
ASSEB Class 11 Business Studies Solved Question Paper 2025
2025
Full Marks: 80
Pass Marks: 24
Time: 3 hours
The figures in the margin indicate full marks for the questions.
Answer Part - A question in the OMR answer sheet provided.
ALLOTMENT OF MARKS
Part-A
(Q. Nos. 1–40): 1 mark each → 1×40 = 40
Part-B:
Q. No. 41: 2 marks each (any five out of eight) → 2×5 = 10
Q. No. 42: 3 marks each (any five out of eight) → 3×5 = 15
Q. No. 43: 5 marks each (any three out of seven) → 5×3 = 15
Total: 80
PART-A (MARKS: 40)
1. The economic activity in which specialized knowledge is required
(a) Profession
(b) Business
(c) Employment
(d) None of the above
Answer: (a) Profession
2. Name the auxiliary to trade which removes the hindrance of time.
(a) Warehouse
(b) Trade
(c) Transportation
(d) Banking
Answer: (a) Warehouse
3. Soaps are included under which type of industry?
(a) Synthetical industry
(b) Analytical industry
(c) Processing industry
(d) Assembling industry
Answer: (a) Synthetical industry
4. A company cannot come into existence without
(a) Certificate of incorporation
(b) Electing directors
(c) Issuing prospectus
(d) All of the above
Answer: (a) Certificate of incorporation
5. In which year was the Companies Act re-framed?
(a) 1956
(b) 1932
(c) 2013
(d) 2003
Answer: (c) 2013
6. In a cooperative society, the main principle followed is
(a) One share, one vote
(b) One member, one vote
(c) Multiple votes
(d) No vote
Answer: (b) One member, one vote
7. Multinational companies are controlled and managed by
(a) Registered office
(b) Parliament
(c) Branch office
(d) Subsidiary company
Answer: (a) Registered office
8. Reserve Bank of India has been set up as which type of public enterprise?
(a) Statutory Corporation
(b) MNC
(c) Departmental undertakings
(d) Government company
Answer: (a) Statutory Corporation
9. When two business enterprises agree to join together for a common objective and mutual gain, it gives rise to
(a) Joint venture
(b) Partnership
(c) Company
(d) MNC
Answer: (a) Joint venture
10. A company whose ownership and control is vested in a holding company is known as
(a) MNC
(b) Departmental undertaking
(c) Statutory corporation
(d) Government company
Answer: (d) Government company
11. DTH services are provided by
(a) Cellular companies
(b) Postal companies
(c) Transport companies
(d) Banks
Answer: (a) Cellular companies
12. Which of the following is not a form of e-banking service?
(a) Cheque
(b) ATM
(c) POS
(d) EFTS
Answer: (a) Cheque
13. Overdraft facility is available on
(a) Current deposit account
(b) Recurring deposit
(c) Savings deposit
(d) Fixed deposit
Answer: (a) Current deposit account
14. Videoconferencing is an example of which type of e-business transaction?
(a) B2E
(b) Intra B2B
(c) B2B
(d) B2C
Answer: (c) B2B
15. Payment for purchases through online shopping is done through
(a) COD, credit card or debit card
(b) COD
(c) Credit card or debit card
(d) None of the above
Answer: (a) COD, credit card or debit card
16. Which one of the following is not an example of transactional risk?
(a) Hacking
(b) Default on order taking
(c) Default on payment
(d) Default on delivery
Answer: (a) Hacking
17. In outsourcing, the process may be outsourced to
(a) Horizontals
(b) Verticals
(c) Captive BPO unit
(d) All of the above
Answer: (d) All of the above
18. Public deposits are the deposits that are directly from
(a) The public
(b) The auditors
(c) The owners
(d) The directors
Answer: (a) The public
19. Which of the following is a commercial bank?
(a) Punjab National Bank
(b) Canara Bank
(c) State Bank of India
(d) All of the above
Answer: (d) All of the above
20. The minimum number of members to form a public company is
(a) 5
(b) 7
(c) 12
(d) 21
Answer: (b) 7
21. Code of conduct should be followed by which level of management?
(a) Top level
(b) Low level
(c) All levels
(d) Middle level
Answer: (c) All levels
22. When a business firm uses eco-friendly methods of production, they are performing social responsibility towards
(a) Customers
(b) Employees
(c) Community
(d) Shareholders
Answer: (c) Community
23. Equity shareholders are
(a) Owners of the company
(b) Shareholders of the company
(c) Executive officers of the company
(d) Creditors of the company
Answer: (a) Owners of the company
24. Funds raised through loans or borrowings are
(a) Borrowed funds
(b) Owner’s equity
(c) Share capital
(d) None of the above
Answer: (a) Borrowed funds
25. Money obtained by issue of shares is known as
(a) Debt
(b) Share capital
(c) Loans
(d) Reserve fund
Answer: (b) Share capital
26. Atmanirbhar Bharat Abhiyan was started in
(a) 2021
(b) 2020
(c) 2022
(d) 2005
Answer: (b) 2020
27. The Industrial Finance Corporation of India (IFCI) was established in
(a) July 1948
(b) July 2001
(c) July 1956
(d) July 1991
Answer: (a) July 1948
28. Innovative small firms are more likely in
(a) Knowledge-based sectors
(b) Biotechnology
(c) Automobile manufacturing
(d) Aerospace manufacturing
Answer: (a) Knowledge-based sectors
29. An individual who initiates, creates and manages a new business can be called
(a) A leader
(b) A manager
(c) A professional
(d) An entrepreneur
Answer: (d) An entrepreneur
30. Which of the following is organized by individuals?
(a) Cottage industry
(b) Railway industry
(c) Chemical industry
(d) None of the above
Answer: (a) Cottage industry
31. In what class does the retail shop of Bata Shoe Company belong?
(a) Supermarket
(b) General store
(c) Cooperative society
(d) Chain store
Answer: (d) Chain store
32. Innovative entrepreneurs face special issues in raising
(a) Development capital
(b) Structured capital
(c) Human capital
(d) Seed capital
Answer: (d) Seed capital
33. The purchase of goods from a foreign country is called
(a) Entreport
(b) Import
(c) Re-export
(d) Export
Answer: (b) Import
34. The retailer plays an important role as a link between
(a) Consumer and manufacturer
(b) Consumer and wholesaler
(c) Manufacturer and wholesaler
(d) He does not link any
Answer: (a) Consumer and manufacturer
35. A warehouse keeper accepts goods for the purpose of
(a) Selling
(b) Packaging
(c) Export
(d) Storage
Answer: (d) Storage
36. Small-scale fixed retailers include
(a) Hawkers
(b) Pedlars
(c) Cheapjacks
(d) General stores
Answer: (d) General stores
37. The World Bank is known as
(a) IMF
(b) IDA
(c) IBRD
(d) Both (b) and (c)
Answer: (d) Both (b) and (c)
38. Which type of elasticity plays a crucial role in determining international trade?
(a) Elasticity of demand
(b) Price elasticity of demand
(c) Income elasticity of demand
(d) Cross elasticity of demand
Answer: (b) Price elasticity of demand
39. Key controllable factors in global marketing are
(a) Government policy and legislation
(b) Social and technical changes
(c) Marketing activities and plans
(d) All of the above
Answer: (c) Marketing activities and plans
40. International trade forces domestic firms to become more competitive in terms of
(a) Introduction of new products
(b) Product design and quality
(c) Product price
(d) All of the above
Answer: (d) All of the above
PART-B (Marks: 40)
41. Answer any five of the following (2×5=10):
(a) Explain the concept of business.
Answer: Business is an activity done to earn money by producing or buying and selling goods and services.
(b) Give two distinctive features of a sole proprietorship.
Answer:
It is owned and controlled by one person.
The owner has unlimited liability.
(c) Define a retailer.
Answer: A retailer is a person or shopkeeper who sells goods directly to consumers in small quantities.
(d) What is a warehouse?
Answer: A warehouse is a place where goods are stored safely until they are sold or used.
(e) What do you mean by business finance?
Answer: Business finance means the money required for starting, running, and growing a business.
(f) Why is a company termed as an artificial person?
Answer: A company is called an artificial person because it is created by law, it can own property, sue and be sued, but it does not have a physical body like a human.
(g) What do you mean by insurable interest?
Answer: Insurable interest means a person has financial benefit in the safety of the object insured. If the object is lost, the person will suffer loss.
(h) What is the private sector?
Answer: The private sector includes businesses and industries owned and run by private individuals or groups for profit.
42. Answer any five of the following (3×5=15):
(a) What is the role of profit in business?
Answer: Profit is the reward of business. It helps a business to survive, grow, and expand. Profit also shows how successful a business is and motivates the owner to take risks.
(b) Write briefly on the changing role of the public sector.
Answer: Earlier, the public sector controlled most industries to promote development. Now, its role is shifting towards supporting private enterprises, providing basic services, and focusing on infrastructure, health, education, and welfare.
(c) What are the services rendered by banks?
Answer:
Accepting deposits from people.
Providing loans and overdraft facilities.
Offering services like ATM, online banking, fund transfer, and issuing cheques.
(d) What do you understand by social responsibility of business?
Answer: Social responsibility of business means that along with earning profit, a business must also take care of society by providing quality goods, protecting the environment, helping employees, and supporting the community.
(e) Write three differences between Memorandum of Association and Articles of Association.
Answer:
Memorandum defines the company’s objectives, while Articles explain the internal rules.
Memorandum is the main document, Articles are subsidiary to it.
Memorandum needs government approval, Articles can be altered by the company.
(f) Write the names of three sources of finance of a company.
Answer:
Share capital
Debentures
Loans from banks or financial institutions
(g) Write the problems faced by small enterprises within 50 words.
Answer: Small enterprises face problems like lack of finance, outdated technology, poor marketing, stiff competition from large industries, and difficulty in getting skilled workers.
(h) Mention the main divisions of foreign trade.
Answer:
Import trade
Export trade
Entrepot trade (importing goods to re-export).
43. Answer any three of the following (5×3=15):
(a) What is a multinational company? Write three main features.
Answer: A multinational company (MNC) is a large business organisation that operates in more than one country at the same time. The company has its head office in the home country, but it sets up branches, factories, or subsidiaries in foreign countries. The main purpose of an MNC is to expand its market, earn more profit, and make use of resources of different countries.
Main features are:
Global operations: An MNC carries out its production and marketing activities in many countries across the world.
Centralised control: The head office in the home country controls and manages the operations of all foreign branches.
Large resources and technology: MNCs use advanced technology, large capital, and skilled manpower which make them powerful and efficient in business.
(b) What is e-banking? What are its advantages?
Answer:
E-banking, also called electronic banking, is a modern way of providing banking services through the use of computers, internet, mobile phones, and other electronic systems. It allows customers to perform financial transactions like transferring money, paying bills, checking balance, and withdrawing cash without physically going to the bank branch.
Advantages of e-banking are:
Convenience: Customers can use banking services 24 hours a day and from any place with internet access.
Saves time and effort: People do not need to stand in long queues at the bank, which saves time.
Fast transactions: Services like online fund transfer, bill payments, and mobile recharge are done quickly.
Better record keeping: Customers can easily check their transaction history and account balance online.
Less cash handling: With e-banking, payments can be made directly through cards or online, reducing the need to carry cash.
(c) How does outsourcing represent a new mode of business?
Answer:
Outsourcing means giving certain business activities or processes to outside agencies or specialised firms instead of handling them within the company. For example, a company may outsource services like call centres, payroll management, advertising, data entry, or IT support. It is considered a new mode of business because it changes the traditional way of running all activities inside the business.
Reasons why outsourcing is a new mode of business:
Focus on main activities: By outsourcing non-core work, companies can focus more on their main business like production or innovation.
Use of expert services: Outsourcing firms are specialists in their field, so the quality of work is better.
Cost efficiency: It reduces costs because outsourced services are often cheaper than doing them in-house.
Globalisation and IT support: Outsourcing makes use of information technology and global communication networks, allowing services to be performed even from other countries.
Flexibility and competitiveness: It helps businesses to adjust quickly to changes in demand and remain competitive in the market.
(d) What do you mean by business ethics? Explain its elements.
Answer:
Business ethics refers to the moral principles and values that guide the conduct of business activities. It means doing business in a fair, honest, and responsible manner without cheating customers, employees, society, or the environment. Ethical business practices help in building trust, goodwill, and long-term success.
Main elements of business ethics are:
Honesty and Integrity: Business should always provide true information, charge fair prices, and avoid unfair practices.
Fair Treatment: All stakeholders like customers, employees, suppliers, and shareholders must be treated equally without discrimination.
Accountability: Business should take responsibility for its actions and their effects on society and the environment.
Respect for Laws: Following government rules and legal requirements is an essential part of business ethics.
Social Responsibility: Business should work not only for profit but also for the welfare of society and protection of nature.
(e) What do you mean by promotion of a company? Write the principal documents necessary for incorporation.
Answer:
Promotion of a company means the process of bringing a company into existence. It involves all activities that are needed to set up a business enterprise in the form of a company. A promoter is a person who takes initiative in forming the company, preparing necessary documents, and completing legal formalities for its registration.
Principal documents necessary for incorporation are:
Memorandum of Association (MOA): It defines the objectives, powers, and scope of the company. It is the main document.
Articles of Association (AOA): It contains rules and regulations for the internal management of the company.
Prospectus (in case of public company): It is a notice inviting the public to buy shares and contains details about the company.
Other statutory documents: Declaration by directors, statement of capital, and consent of directors may also be required.
(f) Explain the role of small industries in rural areas.
Answer:
Small industries play a very important role in the economic and social development of rural areas. They help in reducing poverty, unemployment, and migration to cities. These industries include handicrafts, handloom, agro-based industries, food processing, dairy, poultry, and cottage industries.
Role of small industries in rural areas:
Employment generation: They provide jobs to rural people, including women and youth, with low investment.
Use of local resources: They make use of raw materials available in villages like cotton, wood, milk, and crops.
Balanced regional development: Small industries help in the growth of villages and reduce overpopulation in cities.
Preservation of traditional skills: They protect and promote local art, culture, and handicrafts.
Improvement in living standard: By creating income and opportunities, they raise the standard of living in rural areas.
(g) What is wholesale trade? Describe its features.
Answer:
Wholesale trade means buying goods in large quantities from producers or manufacturers and selling them in smaller quantities to retailers. Wholesalers act as a link between manufacturers and retailers. They do not usually sell directly to consumers.
Features of wholesale trade:
Bulk buying and selling: Wholesalers purchase goods in large amounts and sell them in smaller lots to retailers.
Link between producer and retailer: They help manufacturers distribute goods to many retailers.
Storage facility: Wholesalers store goods in warehouses until they are demanded by retailers.
Credit facility: They often provide credit to retailers and also get credit from manufacturers.
Market information: Wholesalers provide valuable information to manufacturers about market demand, trends, and consumer preferences.
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