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The glorious education, case studies of bst class 11 ch - 1 nature and purpose of business, class -11 business studies , chapter - 1 nature and purpose of business, case study and value-based questions with answers .

Q1. Mr. Bhuvan is a Chartered Accountant in a Multinational Company. He gets rs 85,000 per month as his salary. On weekends, Mr. Bhuvan goes to nearby village and teaches some slum children, he does not charge anything from them, he does it out of sympathy and children. This gives him mental and psychological satisfaction. concern for poor.

(a) Working as CA in a MNC refers to which type of human activity. (b) Teaching students in slum is which type of human activity. (c) Identify the values followed by Bhuvan.

Ans. (a) Economic

(b) Non-Economic

(ii) Value of helping poor.

Q. 2. Rajiv wants to start a whole sale business of readymade garments, but he is hesitating as it involves various problems such as customers for moving goods from place of production to market, informing customers about new designs and varieties added every season, threat of risk loss by fire or accident, storing the excess stock of goods, etc. He approaches his friend Sandeep who explained him about some branches of commerce, which can help Rajiv to overcome his hesitation.

(a) State the type of business Rajiv is planning to start.

(b) State which dimension of business can help Rajiv to overcome these hindrances. (c) Specify different types of Auxiliaries to trade which can help Rajiv to overcome his problems. Quote the line for each type from above Para.

Ans. (a) Trade - Whole sale Trade.

(b) Commerce

(iii) "Informing customers"

(iv) "Threat of Risk" Transportation - Advertisement Insurance -

Q. 3. Indu bought a readymade dress for ₹ 5000. Her friend liked the design of dress very much, so Indu sold the same dress to her friend for 5500 and made a profit of 500. After completing her studies Indu opened a shop of selling readymade dresses for girls.

(a) Can transaction between Indu and her friend be termed as business?

(b)State the features related to 'a'.

Ans.(a) No.

(b) "Regular Basis".

Q. 4. Name the following:

(a) The economic activity showing a risk element and carried on profit.

(b) The trade in which two countries are involved.

(d) The industry which involves breeding and reproduction of plants and animals.

(e) The branch of commerce which remove hindrance of place.

Ans. (a) Business

(b) External Trade

(d) Genetic Industry

(e) Transportation.

Q. 5. An organisation planned to use CFL and LED which consume less electricity to reduce operational cost. They also give preference to labour intensive technique of production. What values company is implementing?

Ans.1. Value of saving electricity.

2. Value of creating employment opportunities.

3. Value of reduction in cost.

Q. 6. An organisation arranges recreational activities for its employees to refresh them and also send them for training to update their knowledge. What values are followed by the company? .

Ans. 1. Value of meeting personal objectives.

2. Value of motivating employees.

3. Values of giving job satisfaction to employees.

Q. 7. A Chartered Accountant advised his elient how to convert black money into white money and he also guided him how to save income tax by hiding his income. Is his act justified.

Ans. No conduct of CA and businessmen are not justified:

(a) CA is violating his code of conduct by acting unethically.

(b) Cheating government by paying less income.

(d) The act is not even unethical but illegal also.

Q. 8. A Tool and Equipment Manufacturing Company gave bribe to purchase manager of a factory to buy tools of low quality and which are not having safety norms. The purchase manager accepted the offer and gave a big order. What values are violated?

Ans. 1. Value of playing with the health of workers.

2. Not fulfilling safety norms competition. 3. Offering bribe is an unlawful act.

Q.9. A unit set up by Tata in rural area and the company plan to develop roads, parks of that area they also started a school for local children of that area. What values are followed?

Ans. 1. Fulfilling social objectives.

2. Increasing literacy rate.

3. Improving standard of living.

Class 11th Business Studies - Business Service Case Study Questions and Answers 2022 - 2023

By QB365 on 09 Sep, 2022

QB365 provides a detailed and simple solution for every Possible Case Study Questions in Class 11 Business Studies Subject - Business Service, CBSE. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.

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Business service case study questions with answer key.

11th Standard CBSE

Final Semester - June 2015

Business Studies

Demonetization in India led to the need for cashless economy. It had a great impact on banking industry. Banks were overflowing with old currency on the one hand and were in cash crisis for new currency. Gradually the problem smoothened but now a hawker and peddler are accepting Paytm, mpesa and other forms of digital cash. Promotion of "mera mobile mera batuaa" concept motivated even the cobbler, hair cutters, vegetable and fruit vendors and other small service providers to accept digital cash and cashless forms. Popularity of plastic money (debit and credit cards) also increased. (a) In the light of above facts, discuss the importance of banking in business and trade. (b) How will demonetization create new aids to trade?

Sanjana obtained a life insurance policy of her husband. After 5 years, her husband dies of cancer. At the time of policy also Sanjana and her husband were aware of the disease but they did not disclose it to the insurance company. (a) Can she claim the amount of policy from the insurance company? (b) Identify the principle of insurance involved. (c) Explain two more principles of insurance.

A person gets his house insured, but he hides the fact that he stores petrol in his house. His house catches fire. He does not bother to minimize the loss as he felt that his house is insured so it is not his headache to make an effort to minimize the loss. (a) Can he claim compensation? (b) State the name of principles involved. (c) Explain these principles.

Mr. X applied for a loan from State Bank of India to expand his shop under Pradhan Mantri Mudra Yojna. Later he purchased a home by taking a home loan from bank. Then he purchased a car on EMI financed by a bank. He also has a saving account with the bank. All his EMIs are getting deducted from his saving account. He has also taken a locker facility from the bank where he keeps his important documents and valuables. (a) Identify primary functions of commercial bank that Mr. X is availing of. (b) Identify agency functions of commercial bank Mr. X is availing of. (c) Identify general utility functions of commercial bank Mr. X is availing of.

One fine day, government announced some policy which was against the interests of truck drivers. As a result, all truck drivers went on strike. Strike continued for three days. It created a calamity kind of situation in the country. People started facing problems even for basic needs. Businesses had to pay labour without work. Many factories could not•..be operational. Many others had to send goods at a higher price to maintain their market. It led to rise in prices of even basic goods. Ultimately government has to accept the demands of truck drivers so that they discontinue the strike. (a) In the light of above facts, discuss importance of transportation in business and trade. (b) How can transportation strike create calamity kind of situation?

Shilpi is planning to start a business. She is having a place where she will establish her factory. But she has no space for warehouse. She is under an impression that she must have a private warehouse if she wants to run business successfully. She is not having enough funds to own a private warehouse. (a) Is she right in her opinion? (b) What are other options she has?

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Business service case study questions with answer key answer keys.

(a) Banking is very important for business and trade. It helps in transfer of funds in transactions. Modern means of transfer of funds include: • Debit cards • Credit cards • NEFT • Mobile banking • Digital cash. (b) Digital cash like Paytm, Mpesa etc are new aids to trade.

(a) No, he cannot claim the compensation. (b) Principle of utmost good faith is not followed. According to this principle, it is the duty of the insurer and insured to voluntarily make full accurate disclosure of all facts, material to the insurance contract. (c) Principle of indemnity: Indemnity means security or compensation against loss or damage. The principle of indemnity is such principle of insurance stating that an insured may not be compensated by the insurance company in an amount exceeding the insured's economic loss. In type of insurance, the insured would be compensation with the amount equivalent to the actual loss and not the amount exceeding the loss. This is a regulatory principal. This principle is observed more strictly in property insurance than in life insurance. The purpose of this principle is to set back the insured to the same financial position that existed before the loss or damage occurred. Principal of subrogation: The principle of subrogation enables the insured to claim the amount from the third-party responsible for the loss. It allows the insurer to pursue legal methods to recover the amount of loss, For example, if you get injured in a road accident, due to reckless driving of a third party, the insurance company will compensate your loss and will also sue the third party to recover the money paid as claim.

(a) No, he cannot claim the compensation (b) Principle of utmost good faith (c) Principle of utmost good faith is not followed: According to this principle, it is the duty of the insurer and insured to voluntarily make full accurate disclosure of all facts, material to the insurance contract. Principle of mitigation: If refers that the insured should try to minimize the loss of the subject matter of the insurer even if it is insured.

(a) (i) Accepting of Deposits: He also has a saving account with the bank. (ii) Granting of Loans: Mr. X applied for a loan from State Bank of India to expand his shop under Pradhan Mantri Mudra Yojna. Later he purchased a home by taking a home loan from bank. Then he purchased a car on EMI financed by a bank. (b) Payments and Acceptance of collections on behalf of client: All his EMIs are getting deducted from his saving account. (c) Locker Facility: He has also taken a locker facility from the bank where he keeps his important documents and valuables.

(a) Transportation is extremely important for business and trade. (i) Transportation removes the hindrance of place and makes goods available to the consumer from the place of production. It helps a factory or business house to get raw material and sell finished goods to the final consumer. (ii) It helps to stabilize prices by moving the goods from the place where they are in excess supply to the place where they are scarce. Transportation removes the hindrance of place and makes goods available to the consumer from the place of production. (iii) Transportation is required in the process of production and distribution offinished goods to market. (iv) Efficient transportation reduces the cost of production and distribution and thereby the selling price of a product - Low price - mass consumption. (v) It helps to stabilize prices by moving the goods from the place where they are in excess supply to the place where they are scarce. (b) When basic needs like fruits, vegetables, milk etc are not available, it creates calamity kind ofsituation. Household do not get basic needs. Business houses are not getting raw material and are unable to sell their finished goods. Certainly it creates calamity kind of situation in the country.

(a) No, she is not right. (b) She has following two options (i) Public warehouse: Govt. regulates their operation by issuing licenses for them to private parties. They can be used for storage of goods by traders, manufacturers or public after payment of fees. (ii) Cooperative warehouse: Owned, managed and controlled by some marketing cooperative societies for their own members. In India, the National Cooperative Development cooperation is developing co-operative warehouse.

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Class 11 Business Studies

Important Questions for Class 11 Business Studies

Important Questions for Class 11 Business Studies are outlined by the subject matter experts from the latest edition of CBSE books. It is recommended for the students to practise the given Class 11 Business Studies chapter wise important questions with the answers. Learning these would definitely help the students in scoring good marks in the board examinations.

Chapter wise Important Questions for CBSE Class 11 Business Studies


Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11

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Important Questions for Class 11 Accountancy
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Important Questions for CBSE Class 11 Business Studies Chapter 2

Class 11 Important Question
Business Studies
Chapter 2: Forms Of Business Organisation

CBSE Class 11 Business Studies Chapter-2 Important Questions - Free PDF Download

Class 11 students who are preparing for the business studies exams must try out these important questions of Class 11 Business Studies Chapter 4 Forms of Business Organisations that our subject experts have framed by strictly following the CBSE syllabus and marking scheme. Students can prepare the chapter effectively for their exams by referring to the PDF files . These questions cover the crucial topics of the chapters. Students can refer to CBSE Class 11 Business Studies Chapter 4 NCERT Solutions and Revision Note as well available on the main page of Vedantu. It will boost their preparation and help them fetch more marks during the exam. There is a high chance that some of these questions may be asked in the examination. Hence, downloading the psd to practice all the questions thoroughly is beneficial.

Topics Covered in Class 11 Business Studies Chapter 2

Introduction to Forms of Business Organisation

Sole proprietorship

Joint Hindu Family Business

Partnership

Types of Companies

Choice of Forms of Business Organisation

Study Important Questions for class 11 Business studies Chapter— 2 Forms Of Business Organization

Very Short Answer Questions (1 Marks)

1. Who elects B.O.D of Joint Stock Company?

Ans : Shareholders elect the Board of Directors of a Joint Stock Company.

2. In which form of business profits are not shared?

Ans: In a sole proprietorship, the owner is solely responsible for all profits, losses, assets, and liabilities.

3. Where a business act as an artificial person what act as an official signature

Ans : As a substitute for the company's signature, the common seal with the company's name engraved on it is utilised.

4. Write the names of systems which govern membership in Joint Hindu Family business

Ans:

1. The Hindu Undivided Family (HUF) is governed by two schools of Hindu law: Mitakshara Law (Law of Mitakshara) Except for Bengal and Assam, the Mitakshara Law extends across India.

2. The Dayabhaga Law applies to Bengalis and Assamese who live in the states of Bengal and Assam, as well as other regions of the world.

5. Enumerate the two conditions necessary for formation of Joint Hindu Family business

1. At least two familial members

2. They will inherit ancestral property

6. What is the minimum no. of persons required to form a co-operative society?

Ans: A minimum of ten people are necessary to form a cooperative (10).

7. Explain the meaning of unlimited liability.

Ans : Unlimited responsibility refers to a firm's indefinite ability to fulfil its debts or commitments, which extends beyond the firm's owner(s), partners, or shareholders' investments to their personal assets. An unlimited liability company, such as a sole proprietorship or a general partnership, assumes this level of risk.

8. Identify a company which has no restriction of on transfer of shares

Ans : There are no restrictions on the transfer of shares in a public business.

9. Name two types of business in which sole proprietorship is very suitable

Ans: Tutorial classes and a small cell phone repair company are excellent examples of sole proprietorship businesses.

10. Write the name of form of business organisation found only in India

Ans: A joint Hindu family business is a type of business that can only be found in India.

11. Name the person who manages a Joint Hindu Family business

Ans: Karta is the person in charge of a Hindu joint family enterprise.

Short Answer Questions (2 OR 3 Marks)

12. Partners in affirm has different roles and liabilities, Identify and explain the type of partner in a firm from the given examples:

a) Rama is a partner in a business who has no actual interest in business trade or its profits but she is Paid fee by the firm for lending its name to firm.

Ans: Rama is a nominal partner in a firm who has no genuine interest in the firm's trade or earnings, but is paid a fee by the firm for providing its name to the firm.

b) In Ram Hari & co. Ltd, Ram & Hari declare Gopal as a partner with knowing that Gopal remain silent then Gopal will be liable to third parties for any loss.

Ans: Ram & Hari declare Gopal as a partner in Ram Hari & Co. Ltd, knowing that if Gopal remains silent, Gopal will be accountable to third parties for any losses.

c) What type of partner is Geeta if she only contribute capital, shar profit and loss if any?

Ans : Geeta is a sleeping partner if she merely contributes capital and shares profit and loss if any .

d) What type of patner is Giri in Ram Hari & co. Where he is an outsider but represent himself as a partner.

Ans: Giri in Ram Hari & co, Where he is an outsider but represent himself as a partner-Partner by Estoppel

13. Explain the forms: sole proprietorship, H.U.F & Joint stock company on the basis of following points: Liability, members & Continuity

Ans: The difference between sole proprietorship, H.U.F & Joint stock company is given below:

Basis	Sole Proprietorship	HUF	Joint Stock Company
Liability	Unlimited Liability	Karta's culpability is boundless, and his personal property is used to pay off his debts. Coparceners' liability is restricted to their part of the risk, which is precisely defined and precise.	Members' responsibility is restricted to the amount of money they contribute to a corporation. Members can only be requested to contribute to the loss up to the amount of unpaid share that they own.
Member	Owner is the member	To start a joint hindu family business, at least two family members are required. At the time of birth, one becomes a member.	In a public corporation, the minimum number of employees is seven, and the maximum number is unlimited; in a private firm, the minimum number of employees is two, and the maximum number is 200.
Continuity	Death, insanity, incarceration, physical illness, and bankruptcy all have an impact on a firm and can lead to its closure.	Company operations are not halted, and business continuity is not jeopardised.	It will only be decommissioned after a precise procedure known as winding up is finished. Members may come and leave, but the company remains in existence.

14. Explain the concept of mutual agency in partnership with suitable example.

Ans: The legal relationship between participants in a partnership in which each has authorisation powers and the authority to engage the partnership into business contracts is known as mutual agency. To put it another way, each partnership member has the capacity to make business decisions that commit or tie the partnership as a whole to a business deal with a third party or entity. Even though the partnership agreement expressly forbids it, a grocery store partner who purchases a delivery vehicle makes a legally binding contract in the name of the partnership. On the other hand, if a law firm partner bought a snowmobile for the firm, such behaviour would be illegal.

15. What is meant by partner by estoppel OR Mr. Singh is in ‘lighting’ business for the post 15 years. To help his friend, Mr Yadav, a beginner he projected himself as a partner before Mohd. Abdul, a whole sale dealer of fancy lights. Mohd. Abdul gave Mr. Yadav the stock without asking for payment and gave him credit limit of one month. Will Mr. Singh be liable to Md. Abdul if Mr. Yadav does not pay him on time ? Classify Mr. Singh’s role here along with an explanation

Ans: Partner by Estoppel is a legal term that refers to a legally binding partnership that can exist even though there is no formal partnership agreement in place. A person who advertises himself or herself as a partner in a firm through conduct or words, or enables himself or herself to be represented as such, is accountable for the credit or loans received by the firm on the basis of such representation. Also known as partnership presumption. The partner does not contribute to the capital or administration of the company, yet his responsibility is limitless.

16. What is secret partner

Ans : A secret partner is a person or partner who is not publicly known in a venture or business. He contributes money to the cause. He's a part of the management team, but only behind closed doors. He also shares in the profits and losses of the firm. His, and others', responsibilities are infinite.

17. Write a short note on producer co-operative society

Ans: Producers' Cooperative Societies were formed to safeguard the interests of small farmers. Producers interested in obtaining inputs for the creation of items to meet consumer demand are among the members. Profits are divided based on their contributions to the society's overall pool of products produced or sold.

18. Explain a co-operative organisation in democratic setup.

Ans: A cooperative society is a voluntary group of people who get together for the common good of its members. The cooperative society is governed by the premise of "one man, one vote." Each member has the same number of votes. As a result, democratic values govern cooperative society.

19. Shiv, Anandi & John were partners John died in a car accident Both Shiv & Anandi decided to admit his son Ryan who was 16 years old as partner. Can they do so? Justify.

Ans: Yes, they can admit Ryan as a partner to the partnership firm's advantages with the permission of the partners. A minor is a person who is under the age of eighteen. Because a minor is incapable of forming a legally binding contract. He is unable to become a partner in a firm. A minor can, however, be added to the advantages of an established partnership business with the agreement of all other partners. It's unrealistic to expect him to absorb the losses. His responsibility will be limited to the amount of money he has put into the business. He will be unable to engage fully in the running of the company.

20. Differentiate between private co. and public company

Ans: Difference between private company and public company are as following:

Basis for Comparison	Public Company	Private Company
Meaning	A publicly traded firm that is owned and exchanged by the general public.	a privately held and traded corporation
Minimum member	7	2
Maximum Member	unlimited	200
Minimum Director	3	2
Suffix	Limited	Private limited
Start of Business	Following receipt of a certificate of incorporation and a certificate of company start-up,	Following receipt of the certificate of incorporation
Statutory Meeting	Compulsory	Optional
Issue of Prospectus/ Statement in lieu of Prospectus	Obligatory	Not required
Public Subscription	Allowed	Not allowed
Quorum at AGM	5 members must present in person	2 members must present in person
Transfer of shares	Free	Restricted

21. Akriti, Sonam & Supreeti were friends who started a partnership business. They did not get their firm registered as it was optional. Soon, Sonam & Supreeti started having conflicts. Sonam wanted to approach a lawyer. If you were a lawyer than how would you guide her ? OR Mangal, Sazia & Suqhbeer Singh wish to start a business in partnership. They want to make a partnership deed, Suggest what aspects of the deed should be included in it ?

Ans : The term "partnership" refers to a relationship between people who have agreed to split the profits from a firm that is run by all of them or by one of them acting on behalf of all of them. Although firm registration is optional, a partnership deed might be produced to avoid problems between partners. The partnership deed is a written agreement that contains the rules and conditions that govern the partnership.:

A partnership deed generally has the following elements:

• Firm name

• Nature of company and location of operation

• Duration of business

• Each partner's investment

• Profit and loss distribution

• The partners' responsibilities and obligations

• The partners' salaries and withdrawals

• The terms regulating a partner's admission, retirement, and expulsion

22. Explain limitations of Joint Stock Company

Ans: The following are the restrictions:

• When ownership as well as management are separated, there is a lack of effort and personal commitment on the part of the company's executives.

• A company's information is periodically given to the Registrar of Companies, and therefore information is available to the general public. This restricts a company's operational flexibility and wastes a significant amount of time, effort, and money.

• Communication and acceptance of various ideas to top, middle, and lower level management may cause delays in not just making choices but also carrying them out.

• The Board of Directors is made up of the company's owners, the shareholders.

23. Which form of business is suitable for following types of business and why ?

(a) Beauty Parlour

Ans: Sole Proprietorship for a Beauty Salon. Created and operated in a simple and cost-effective manner. On his or her personal tax return, the owner declares profit or loss.

(b) Coaching Centre for science students

Ans: Partnership with a science coaching centre. It's easy to make and run, and it's cheap. On their personal tax returns, partners record their share of profit or loss.

Ans: Joint Stock Companies in the Hotel Industry The limitation on their owners' personal liability for company debts and court judgements against the firm is the major aspect of LLCs and corporations that attracts small enterprises. Another issue to consider is income taxes: you can establish up an LLC or a corporation to take advantage of lower tax rates. Furthermore, an LLC or corporation may be able to offer a variety of fringe benefits to its employees (including the owners) and deduct the cost as a business expense.

(d) Shopping mall

Ans: JSCs (joint stock companies) are shopping malls. Owners' personal liability for commercial debts is limited .

(e) Restaurant

Ans : Sole proprietorship of a restaurant. Created and operated in a simple and cost-effective manner. On his or her personal tax return, the owner declares profit or loss.

(f) Small repair business

Ans: Sole Proprietorship for a small repair business. Created and operated in a simple and cost-effective manner. On his or her personal tax return, the owner declares profit or loss.

Long Answer Questions (5 OR 6 Marks)

24. In what type of business, individuals associate voluntarily for profit, having capital dividend into transferable shares, the ownership of which is the condition of membership? Explain with features

Ans : A joint stock company is a voluntary group of people founded for the purpose of carrying out profit-making business activities. It has a different legal position from its members and a capital structure that is divided into transferable shares. A corporation is a legal entity that possesses its own legal identity, perpetual succession, and common seal. The shareholders are the company's owners, and the Board of Directors is the company's top management body, which is elected by the shareholders.

The company's capital is divided into smaller units called "shares," which can be freely transferred from one shareholder to another (except in a private company). The following are the characteristics of a joint stock company:

• A corporation is a fictitious person. It is a legal creation that exists independently of its members.

• A corporation acquires its own legal personality. The business and its owners are not considered one and the same by the law.

• Starting a business is a time-consuming, expensive, and difficult process. It is necessary for businesses to be incorporated.

• It will only be decommissioned after a specialised procedure known as winding up is finished. Members may come and leave, but the company remains in existence.

• A company's affairs are managed and controlled by the Board of Directors, which appoints top management for corporate operations.

• A company may or may not have a common seal.

• The risk of a company's losses is shared by all shareholders.

25. If registration is optional, why do partnership firms willingly go through this legal formality? Explain the reason with procedure to get them registered.

Ans: The registration of a partnership firm is optional. However, it is preferable to have a formal agreement to avoid problems between partners. The following are the implications of a firm's failure to register:

I. A partner in an unregistered firm cannot sue the firm or other partners;

Ii. The firm cannot sue third parties; and

iii. The firm cannot bring a case against the partners.

The partnership deed is a written agreement that contains the rules and conditions that govern the partnership.

The following elements are usually included in a partnership deed:

• Name of firm

• Nature of business and location of business

• Investment made by each partner

• Profit and loss distribution

• Partners' duties and obligations

• Salaries and withdrawals of partners

• Terms governing admission, retirement, and expulsion of a partner

• Interest on capital and interest on drawings

• Procedure for dissolution of a partnership

Firm registration procedure:

1. Submit an application to the Registrar of Firms in the specified form. The following information should be included in the application:

• The firm's name

• its location

• the names of other locations where the firm does business

• the date each partner joined the firm

• the partners' names and addresses

• the duration of the relationship All of the partners should sign this application.

2. Make a fee deposit with the Registrar of Firms.

3. Following approval, the Registrar will enter the firm into the register of firms and provide a certificate of registration.

26. Who have equal ownership right over the property of an ancestor? Highlight with its essential characteristics

Ans: A Joint Hindu Family is a type of organisation in which the members of the Hindu Undivided Family own and operate the business (HUF). Membership in the company is based on birth in a certain family, and three generations can be members. The eldest member of the family, known as karta, is in charge of the family's company. Co-parceners are members of a Joint Hindu Family Business who have equal ownership rights over an ancestor's property.

The following are the characteristics of a joint Hindu family business:

• There is no need for an agreement because membership is by birth.

• All members, excluding the karta, are only liable for their part of the business's co-parcenery property. The liability of the karta is limitless.

• The family business is controlled by Karta, and his decisions are binding on everybody.

• The business continues even after Karta's death, as the next eldest son becomes Karta.

26. Why cooperative forms of organisation are formed? Explain various types of cooperative societies

Ans: A cooperative society is a voluntary group of people who get together for the common good of its members. They are driven by a desire to protect their economic interests against potential abuse by middlemen who are just out to make more money. The procedure of forming a cooperative organisation is straightforward, and all that is required is the approval of at least ten adult individuals. The capital of a society is raised by issuing shares to its members. Following its registration, the society gains an unique legal identity .

Consumer Cooperative Societies are one type of cooperative society.

It was established to safeguard the interests of consumers.

The society aims to eliminate middlemen in order to achieve operational efficiencies. It buys goods in bulk directly from wholesalers and sells them to members.

Profits are distributed based on either capital contributions to the society or individual member purchases.

Producers' Cooperative Societies are a type of producer cooperative society.

It was created to protect the interests of small farmers.

Producers seeking inputs for the creation of commodities to meet consumer wants make up the members.

Profits are dispersed based on their contributions to the total pool of goods produced or sold by the society.

Marketing Cooperative Societies This organisation was founded to assist small producers in selling their goods.

The members are producers who want to get fair pricing for their goods.

It combines the production of individual members and engages in marketing operations such as shipping, storage, packaging, and so on in order to sell the items at the highest possible price. Profits are distributed according on how much each participant contributed.

Farmers' Cooperative Societies are founded to defend farmers' interests by offering superior inputs at a fair cost.

Members are farmers who want to take up farming activities together.

The goal is to reap the benefits of large-scale farming while increasing production. Improves yield and returns to farmers while also addressing the issues that come with farming on fragmented land holdings.

Cooperative Credit Societies: It was founded to provide members with quick credit on affordable terms.

The members are those who are looking for financial assistance in the form of loans.

The goal of such organisations is to safeguard members from being exploited by lenders who charge exorbitant interest rates on loans.

Cooperative Housing Societies are a type of cooperative housing organisation.

It was created to assist low-income people in building dwellings at an affordable cost.

People who want to get a cheaper place to live make up the members of these societies.

The goal is to solve the members' housing concerns by building houses and allowing them to pay in instalments.

27. Dhirubhai Chaurasiya operates a textile business. His family is joint and has a lot of ancestral property. All the 15 family members are a part of this business. He is the eldest male member in the family so he heads the business. He is liable to all the creditors of the business as he is the decision maker. Dhirubhai’s grandson has just born a few days ago and he is also the member of the business.

(a) Which form of business is being undertaken by Dhirubhai Chaurasiya ?

Ans : Dhirubhai Chaurasiya is involved in a joint Hindu family business.

(b) Identify the features of this form of business based on the information given.

Ans : The following are the features of a joint Hindu family company based on the previous information:

• As 15 family members are involved in the business and have a lot of ancestral property, there should be at least two individuals in the family and ancestral property to be inherited by them.

• Except for the karta, all members' responsibility is restricted to their share of co-parcenery property. The karta has unrestricted liability to all business creditors since he is the decision maker.

Ans: Textile business is part of Agro based industries.

28. 'Reva Chemicals' is a partnership firm. Sona and Mona one two partners in this firm. It is recorded in the Partnership Deed that Sona's liability is unlimited, whereas Mona's is limited. Sona wants to set up the Anti-Pollution plant in his factory, but Mona does not let him do so. Almost all the transactions of this firm are done through the internet. The firm Sells its goods to other Business units only. The firm gets its Research and Development work done by another firm, who is a specialist of such work.

i. Describe the type of partnership.

Ans: It's a limited partnership in which at least one partner's liability is limitless, but the others may have limited liability. Limited partners have no management powers and are unaffected by the firm's or other partners' activities. A partnership of this nature must be registered.

ii. identify the two values being overlooked.

Ans: The following are the two ideals that are being overlooked:

• Government rules are being broken;

• The social responsibility clause is not being followed.

iii. Name the type-business being done by the firm

Ans : It is a B2B (Business to Business) transaction. Short for business-to-business electronic commerce, B2B e-commerce (sometimes written as e-Commerce, eCommerce, or similar variants) is the sale of items or services between businesses over the internet using an online sales portal. In general, it is utilised to help businesses become more efficient. Instead of manually processing orders over the phone or by e-mail, ecommerce allows orders to be processed digitally .

29. Ravi, Pradeep, Satyender and Dharmender are partners in a partnership firm. Ravi and Satyender take active part in the operation of business whereas Pradeep has contributed in Capital but do not take part in day to day activities of the business. Dharmender is a nominal partner. All four make partnership for a specified time period and also make written agreement to govern the partnership but they does not get the firm registered.

a. What is meant by nominal partner?

Ans: A nominal partner is one who permits a firm to use his or her name. He neither contributes to the capital nor participates in the administration of the company. He usually does not share profits or losses, and his liability is infinite.

b. Which type of partnership is there between the partners in above?

Ans: The partners have formed a general partnership. In a general partnership, the partners' responsibility is limitless and joint. The partners have the right to participate in the firm's management, and their actions are binding on both the partners and the firm.

c. What is written agreement between the partners called?

Ans: The partnership deed is a written agreement between the partners. The partnership deed is a written agreement that contains the rules and conditions that govern the partnership.

d. What type of partners Pradeep and Ravi are?

Ans : Ravi is a hands-on partner. Active partners are individuals who actively participate in the firm's business on behalf of their fellow partners. They invest money and participate in the operation of the company. He shares in the partnership's profit and loss. His legal responsibility is limitless.

Pradeep is my sleeping companion. Sleeping partners are those who do not participate in the day-to-day operations of the company. They invest capital but do not participate in the management of the company. He shares in the partnership's profit and loss. His legal responsibility is limitless.

e. Give two merits of getting firm registered.

Ans: The following are two advantages of registering a business:

• An unregistered firm's partner cannot sue the firm or other partners;

• The firm cannot sue third parties.

30. Explain different types of Partnership on the basis of duration and liability?

Ans: Types of Partnership are as follows:

On the basis of duration: It can endure as long as the partners want it to, and it will terminate when one of them gives written notice of his or her intention to leave the relationship. A partnership created for the aim of completing a specified project, such as the construction of a structure or the performance of a time-limited activity.

On the basis of Liability: Partners have unlimited and joint liability; they have the right to participate in the firm's management, and their acts bind them as well as the firm.

The limited partners have no authority over the firm or the other partners, and their acts have no legal consequences for the firm or the other partners. It is necessary to register such a partnership.

Importance of CBSE Class 11 Business Studies Important Questions for Chapter 2

The questions cover all the necessary topics of the chapter so that students don’t miss out on any important concepts.

When it comes to the last-minute revision of the chapter, going through these important questions will be greatly beneficial.

It is considered the best reference study material for preparing the Business Studies chapter “Forms of Business Organisation” for exams

It highlights the important topics of the chapter that need to be studied well.

Extra Questions for Practice

List different forms of business organisation.

Write two merits and demerits of a business organisation.

What is a partnership?

Explain “Minor As A Partner”.

What is a partnership deed?

What is a cooperative society?

What is a Joint Stock Company?

Mention any 5 differences between a public company and a private company.

Explain the nature of business briefly.

Explain the process of setting up a cooperative society.

Why Vedantu Has Provided Important Questions for CBSE Class 11 Business Studies Chapter 2?

The students studying this amazing subject sometimes find it problematic to deal with the question and answer pattern. The students study the chapters well enough, but when the question comes in the exam, they cannot give their best; this may happen for two reasons – they cannot frame the answers well or due to a shortage of time.

Also, this is quite common among students. After studying and understanding the whole concept of the chapter, students find themselves very reluctant to look for important questions and frame each answer for the same. Before the exam days, when students have limited hours to prepare for the exam, they find it very difficult to read the whole chapter with specific detail.

For all these problems, we at Vedantu have come up with a single solution to infuse these important questions into the study routine. We have prepared a series of important questions from chapter 2 of Business Studies. The students can now know the important questions from the chapter; they can prepare from the textbook while they can refer to our site for the guided important questions (Also, the students can check our site for full-fledged guidance of our master class in this subject of Business Studies). The students who ask for important questions and guidance at the last minute also benefit.

Chapterwise Important Questions for CBSE Class 11 Business Studies

Chapter 1 - Business, Trade and Commerce

Chapter 3 - Private, Public and Global Enterprises

Chapter 4 - Business Services

Chapter 5 - Emerging Modes of Business

Chapter 6 - Social Responsibilities of Business and Business Ethics

Chapter 7 - Formation of a Company

Chapter 8 - Sources of Business Finance

Chapter 9 - Small Business

Chapter 10 - Internal Trade

Chapter 11 - International Business

Summing up, these questions are designed solely with students’ interests. Hence, the students are highly requested to study the important questions from this chapter, as this is one of the important chapters concerning the exam view for their future study in the study of management or the study of business.

FAQs on Important Questions for CBSE Class 11 Business Studies Chapter 2

1. What is Chapter 2 of Class 11 Business Studies about?

Business Studies Chapter 2 of Class 11 elaborates on various forms of business organisation. Forms of organisations are businesses that differ from each other depending on their ownership and management and the nature of the enterprise. To provide a vivid insight into a business organisation, the Chapter explains properly using examples such as sole proprietorship, cooperative societies, partnership, a company, joint Hindu family, choice of organisation, etc.

2. According to Chapter 2 of Class 11 Business Studies, what is a sole proprietorship?

A sole proprietorship is a type of business in which a single person owns the entire enterprise, in which he/she is the only person who manages and owns the business. He/she will be the person enjoying all the profits or bearing all the losses of the enterprise. Most of these are small-scale businesses like small grocery stores or tea stalls.

3. What are the different types of business partners, according to Chapter 2 of Class 11 Business Studies?

There are six different types of business partners. They are classified as an active partner, sleeping partner, secret partner, nominal partner, partners by estoppel, and partners by holding out. Out of all these partners, an active partner contributes capital, manages the enterprise, and shares profits and losses. Sleeping partners only invest capital and share profit/loss but do not participate in management. Secret partners invest and share profit/loss and manage work secretly. Rest all the partners do not make any significant contribution.

4. According to Chapter 2 of Class 11 Business Studies, what is a cooperative society?

A cooperative society is a private organisation or a business set up by more than one person who comes together with the same motto of their welfare and members. The cooperative society act 1912 was imposed to protect the economic interest of the society, which would otherwise get exploited by middlemen. Hence the act urges all cooperative societies to get registered and should have at least 10 members in their society.

5. According to Chapter 2 of Class 11 Business Studies, what are the different types of cooperative societies?

The different types of cooperative societies based on their nature are listed below:

Consumer Cooperative Societies

Producers Cooperative Societies

Marketing Cooperative Societies

Farmers Cooperative Societies

Credit Cooperative Societies

Cooperative Housing Societies

CBSE Class 11 Business Studies Important Questions

Cbse study materials.

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NCERT Solutions for Class 11 Business Studies

NCERT Solutions for Business Studies Subject for Class 11 Students are given here. The 11th grade is an important milestone because it lays the foundation for your final board exams the next year. For students who plan to study commerce, Business Studies is an integral part of your syllabus.

Business studies require you to memorise a lot of business laws and trade sanctions. At LearnCBSE.in, we provide the Class 11 Business Studies NCERT Solutions. You can easily download the solutions and start solving questions to make it easier for yourself!

Chapter 1 Nature and Purpose of Business
Chapter 2 Forms of Business Organisation
Chapter 3 Private, Public and Global Enterprises
Chapter 4 Business Services
Chapter 5 Emerging Modes of Business
Chapter 6 Social Responsibilities of Business and Business Ethics
Chapter 7 Formation of a Company
Chapter 8 Sources of Business Finance
Chapter 9 Small Business
Chapter 10 Internal Trade
Chapter 11 International Business-I
Chapter 12 International Business-II

NCERT Solutions for Class 11 Business Studies PDF

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Business Studies

Class 11 Business Studies Notes & Model Test Papers

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Cbse last year papers, user submitted papers, mock tests, nature and purpose of business, forms of business organisations, public private and global enterprises, business services, emerging modes of business, social responsibility of business and business ethics, sources of business finance, small business and enterprises, internal trade, international trade.

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Other useful resourses, online tests, learning videos.

As we know business is something that sustains an economy. We are surrounded by a business world which makes it pertinent to have an operational knowledge of Business Studies. This subject is introduced in the plus-two level as an academic elective of the commerce stream. Students can access all valuable resources related to senior secondary Business Studies on the student’s best app myCBSEguide .

Study Material for CBSE Class 11 Business Studies

Knowledge of Business Studies gives a point of view of the business world and methods of interacting with the business environment. The senior secondary Business Studies curriculum develops an understanding of many social and ethical issues among the students. To prepare for this subject well, students can take the help of myCBSEguide where they can find the study material for Class 11 Business Studies. Right from the CBSE syllabus, NCERT textbook, Textbook Solutions, Revision Notes, Important Questions, online tests, test papers, learning videos, model question papers of class 11 Business Studies, etc. Our premium content has been trusted by millions of teachers and students alike.

CBSE Class 11 Business Studies Syllabus

The syllabus for CBSE Class 11 Business Studies prepares students to analyze and respond to the changes in the business world. The idea is based on the fact that business influences our social, political, and legal surroundings. Therefore the Business Studies syllabus attempts to keep the students up-to-date with the business market. The table below names the chapters included in the class 11 Business Studies syllabus for the current session. Knowing the syllabus right is the first step in beginning your preparation. To get more details about the topics of the mentioned units click on CBSE Class 11 Business Studies-syllabus 2022-23 .

Class 11 Business Studies NCERT Solutions & Important Questions

As we know NCERT solutions are very important while preparing for the CBSE examination. These questions give an outline of the basic types and formats of questions that are probable. Knowing the NCERT textbook solution is a must for every CBSE student. Sometimes, the final board examination question paper is completely based on the NCERT. You can download the NCERT solutions for Class 11 Business Studies on the myCBSEguide mobile app .

We also get some important questions prepared by experienced teachers from significant sections of each chapter. These questions can be found under the extra questions or important questions section of our student dashboard . To know the important questions for Class 11 Business Studies, check out our course content now.

Class 11 Business Studies Sample Papers

Sample papers are the best tool to prepare for the final examination. The sample papers available on myCBSEguide are the true copy of the latest CBSE sample papers with the same blueprint and Marking Scheme. We have a team of experts who do a detailed analysis of the Business Studies question paper to prepare the model question papers provided by us. It is one of our most valued and marketed products. The best part is, we prefer to abide by the latest CBSE syllabus and guidelines for examination (if any). Therefore, students get huge benefits from our sample papers which are reflected on their mark sheets. You can check the details of Class 11 Business Studies Sample Paper 2023 from the app or website and download the same. At the senior secondary level, students need to be more attentive and serious towards their preparation and so they should not miss out the solving sample papers before writing their final papers.

Class 11 Business Studies Test Papers & Mock Tests

Students can also find chapter-based test papers for class 11 Business Studies on the dashboard. These test papers are a good tool for the formative learning process. The sample papers can be accessed after the CBSE releases its official sample paper. But test papers can be used at any point in time.

We also provide online tests for Class 11 Business Studies. These tests are good for objective types of questions like MCQs or one-word answers. Before the final examination, we also arrange for mock tests and test series for core CBSE subjects. Registered students are notified about these tests.

This year CBSE has already released its practice papers, check them on Practice Paper 2023 Class 11 Business Studies question papers are also available here.

Class 11 Business Studies Case Study Questions

Being a subject of profession Business Studies have a huge scope of presenting real-life situational questions. Hence, senior secondary Business Studies students need good practice with these types of questions.

According to the new education policy , competency-based education is promoted. With this aim, case-based questions were introduced last year. These types of questions are designed to hone the analytical thinking of the students and apply the knowledge and technique that they have acquired in the due course in solving real-life situation-based questions. It enhances the rational thinking of the learners and they eventually gain a critical and analytical understanding of the subject. We have best case study questions for Class 11 Business Studies. You may find many such questions in publication books, but we have an assortment of Business Studies CBQs which require the application of key business concepts covering all important topics. Check the link for Class 11 Business Studies Case-Studies Questions .

Class 11 Business Studies Case Study Sample Question

OLX and qickr are examples of well-known websites used to conduct business. Tarasha’s sofa set got spoiled in the rain. Her friend suggested that she should change the fabric so that it looks new and put it for sale on Olx. Tarasha followed her friend’s advice and got her sofa repaired so that it looked better and uploaded nicely clicked pictures on the website without disclosing the fact that it was damaged from the inside. She found a buyer and sold it for Rs 10,000. After five days the buyer found the real state of the sofa set and called Tarasha but she did not answer any of the calls.

identify the type of business highlighted in the above case.
Identify any two values which are overlooked by Tarasha.
Explain any two benefits and limitations of e-business.

A well-furnished course plan of preparation is a must if you plan to shine in your exams. We have been assisting students in their learning process through our reliable content for a decade. We are a one-stop platform where you can get literally everything (for Class 11 Business Studies (be its textbook, syllabus, revision notes, or model question papers and mock tests. To get study material in other classes and subjects check our CBSE module . From the google play store download the myCBSEguide app now.

CBSE Class 11 Business Studies Case Study Questions are available on myCBSEguide App. You can also download them from our student dashboard. For students appearing for grade 11 CBSE exams from the Commerce stream, Business Studies is a fundamental subject. Business Studies is considered to be quite interesting as well …

CBSE Class 11 Business Studies Syllabus 2022-23

CBSE Class 11 Business Studies Syllabus 2022-23 includes Nature and Purpose of Business, Forms of Business Organisations, Public, Private and Global Enterprises, Emerging Modes of Business etc for the session 2022 – 2023. Here is the detailed syllabus. To download class 11 Business Studies CBSE latest sample question papers for …

CBSE to Conduct Two Term Exams in 2021-22

CBSE has issued a circular on 5th July 2021 regarding the Special Scheme of Assessment for Board Examination Classes X and XII for the Session 2021-22. Here is the complete text of the circular. COVID 19 pandemic caused almost all CBSE schools to function in a virtual mode for the …

CBSE Class-11 New Stream Selection Rules

The New Education Policy-2020 has suggested eliminating rigid stream selection rules. We know that there are three streams in class 11 and the choices to select subjects are limited. Students have to select subjects within the stream only. Thus, if you are taking Science Stream, you have no option to …

CBSE Syllabus 2021-22 Released

The syllabus for the session 2021-22 has been released by CBSE, New Delhi. It is available on the myCBSEguide App and CBSE official Website for free download. Here are some important points to note: The syllabus is almost similar to last year without 30% reduction. There are some minor changes …

CBSE Reduced Syllabus by 30% for Session 2020-21

CBSE, New Delhi has reduced the syllabus for classes 9 to 12 by 30%. The CBSE Revised Syllabus 2020-21 is available in CBSE official website and myCBSEguide mobile app. Here is the complete circular regarding CBSE Revised Syllabus 2020-21: CBSE Reduced the Syllabus The prevailing health emergency in the country …

Create CBSE Question Papers Online

Creating question papers online is easy. You can create question papers online with your name and logo in minutes. So, why to waste time consulting many books and finding suitable questions. Just log in to myCBSEguide Test Generator here and create question papers online. Follow 3 simple steps: Select your …

CBSE Syllabus for Class 11 Business Studies 2019-20

CBSE Syllabus for Class 11 Business Studies 2019-20 contains all the topics of this session. myCBSEguide provides you latest Syllabus for Class 11 Business Studies. The study of business is about how individuals and groups of people organize, plan, and act to create and develop goods and services to satisfy …

CBSE Released Syllabus for 2019-20

CBSE syllabus for 2019-20 is now available for download in CBSE official website and myCBSEguide Mobile App. The new syllabus for 2019 and exams to be held in March 2020. CBSE 2019-20 syllabus for March 2020 examination is released by CBSE, New Delhi. CBSE class 10 Syllabus for 2019 and …

Revision Notes of Class 11 Business Studies

Revision Notes of for Class 11 Business Studies in PDF are available for free download in myCBSEguide mobile app. The best app for CBSE students now provides class 11 Notes latest chapter wise notes for quick preparation of CBSE exams and school-based annual examinations. Class 11 Business Studies notes are …

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Business Studies Class 11 Important Questions with Answers Chapter Wise BST

February 17, 2021 by Veerendra

CBSE Class 11 Business Studies Chapter Wise Important Questions and Answers 2020: Here we are providing CBSE Important Extra Questions for Class 11 Business Studies Chapter Wise Pdf download of Part 1 Foundations of Business and Part 2 Corporate Organisation, Finance and Trade in Hindi and English Medium. Students can get Business Studies Class 11 NCERT Solutions , Business Studies Class 11 Important Extra Questions and Answers designed by subject expert teachers.

CBSE Class 11 Business Studies Important Extra Questions and Answers Chapter Wise Pdf

Business Studies BST Class 11 Important Questions with Answers Chapter Wise Pdf Part 1 Foundations of Business

Chapter 1 Nature and Purpose of Business Class 11 Important Questions
Chapter 2 Forms of Business Organisation Class 11 Important Questions
Chapter 3 Private, Public and Global Enterprises Class 11 Important Questions
Chapter 4 Business Services Class 11 Important Questions
Chapter 5 Emerging Modes of Business Class 11 Important Questions
Chapter 6 Social Responsibilities of Business and Business Ethics Class 11 Important Questions

Important Questions of Business Studies BST Class 11 Part 2 Corporate Organisation, Finance and Trade

Chapter 7 Formation of a Company Class 11 Important Questions
Chapter 8 Sources of Business Finance Class 11 Important Questions
Chapter 9 Small Business and Entrepreneurship Class 11 Important Questions
Chapter 10 Internal Trade Class 11 Important Questions
Chapter 11 International Business Class 11 Important Questions

We hope the given CBSE Class 11 Business Studies Important Questions Chapter Wise Pdf download of Part 1 Foundations of Business and Part 2 Corporate Organisation, Finance and Trade in Hindi and English Medium will help you. If you have any queries regarding NCERT Business Studies Class 11 Extra Important Questions and Answers, drop a comment below and we will get back to you at the earliest.

FAQ’s on Business Studies Class 11 Important Questions

Question 1. Where do I get Class 11 Business Studies 1 Mark Questions?

Answer: Important Questions for Class 11 Business Studies are provided on Learninsta.com by the subject experts. Check out chapter-wise Business Studies Class 11 Important Questions and Answers and prepare well for the exam.

Question 2. How do I score 90 plus in Business Studies Class 11 CBSE?

Answer: Score 90 Plus marks in the Business Studies Class 11 CBSE by referring to previous papers. Also, preparation notes are given on our website for better preparation for the exams.

Question 3. How should I learn class 11 Business Studies concepts easily?

Answer: Note down all the concepts of Class 11 Business Studies and prepare notes with all the Important Questions and Answers. Check out Business Studies Class 11 Important Questions with Answers on Learninsta.com

Question 4. Where can I get the list of Business Studies Class 11 Important Questions?

Answer: Stay tuned to Learninsta.com to get Business Studies Class 11 Important Questions. We update every important question of Business Studies Class 11 according to the new syllabus.

Chapter-wise MCQs for CBSE Class 11 Business Studies: Based on latest CBSE Syllabus 2023-2024

Find chapter-wise mcqs for cbse class 11 business studies. also, find attached the chapter-wise pdf download link for the same. these mcq-type questions will come in handy for class 11 students in preparation for end-term examinations in 2024.

MCQs for CBSE Class 11 Business Studies: Jagran Josh brings to you chapter-wise MCQs for CBSE Class 11 Business Studies. PDF download links for all chapters have been attached here, for your reference. These questions and answers have been specially prepared by subject experts, as per the Revised CBSE Syllabus 2023-2024. This article will be useful for CBSE students of Class 11. Also, find attached links to important resources for preparing for the end-term examinations in 2024.

Direct Text-based Question Answer
True or False
Fill in the blanks
Match the following
Check which statement is true
Pick the odd one out
Assertion and Reasoning
Case studies based/ Source-based

How to prepare for Multiple-Choice Questions (MCQs)

Thoroughly read your chapters
Prepare/ Read mind maps
Solve in-text NCERT Questions
Solve Sample papers
Practice from Previous-Year Question Papers
Take online Mock tests
Prepare from Question Banks/Reference Books

CBSE Class 11 Business Studies Revised Syllabus 2023-2024 (PDF)

Mind Maps for CBSE Class 11 Business Studies 2023-2024 (PDF)

Find Chapter-wise MCQs for CBSE Class 11 Business Studies:

Here, we have provided MCQs for all chapters of Class 11 Business Studies. PDF download links for each chapter have been attached to the article for students. We have considered CBSE' s updated guidelines, curriculum, and other relevant details while preparing these Multiple Choice Questions for you. As per the competency-focused questions released by the boards, MCQs are going to play an essential role in the process.

CBSE Class 11 Syllabus 2023-24 (All Subjects)

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Digital Twins Can Help You Make Better Strategic Decisions

Graham Kenny
Ganna Pogrebna

Two case studies show how they can improve outcomes.

The traditional application of digital twins has been with physical objects like building sites or even cities in the case of Singapore. This has now changed with the ability to marry gen AI tools with digital twin technology to model organizational processes and supply chains. Moreover, this technology is no longer exclusive to large corporations; its reduced cost makes it accessible to small and medium enterprises as well. Even without extensive resources or dedicated analysts, companies can use gen AI with digital twins to analyze existing customer data and generate detailed virtual models of various customer segments. This article details two cases from companies that illustrate how marrying get AI with digital twins can produce spectacular outcomes.

Even when handled well, strategic change can be extremely disruptive to organizations. At its worst, bad strategy can demolish a business. Unfortunately, with so many factors at play, it’s traditionally something of a roll of the dice. But what if there was an accurate and cost-effective way to predict the impact of complex change scenarios? You may have dismissed automated prediction systems in the past, but it’s time to look again.

Graham Kenny is the CEO of Strategic Factors and author of Strategy Discovery . He is a recognized expert in strategy and performance measurement who helps managers, executives, and boards create successful organizations in the private, public, and not-for-profit sectors. He has been a professor of management in universities in the U.S. and Canada.
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Important Questions for CBSE Class 11 Business Studies Chapter 7 – Formation of a Company

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Formation of a Company Class 11 Important Questions for Business Studies Chapter 7

Business study introduced in Class 11 and continues through Class 12 as a Commerce subject. If students study this subject, they will become knowledgeable in the field of management and other business disciplines. Formation of a company is the seventh chapter of the Class 11 syllabus, and it teaches what all goes into the formation of a company. This chapter covers concepts such as important stages in the formation of a company, steps involved in each stage of company formation, documents to be submitted to the registrar of companies, the need for a certificate of incorporation and certificate to commence business, and so on. This chapter carries significant weightage in the Business Studies syllabus. Students can easily access Chapter 7 of Class 11 Business Studies Important Questions and more from the Extramarks website.

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For a theoretical subject such as Business Studies, it becomes important for the students to review all the chapters thoroughly. Keeping that in mind, we have created them from different sources such as the NCERT Textbook, NCERT Exemplar, other reference books, past year exam papers, and so on. Our Business Studies faculty experts have curated step-by-step solutions to help students better comprehend the topics after much research. Students may register with Extramarks and get access to Business Studies Class 11 Chapter 7 Important Questions.

Along with Class 11 Business Studies Chapter 7 Important Questions, there is so much that the Extramarks website has to offer. Students can easily find materials like NCERT Solutions, CBSE revision notes , past year question papers, NCERT books, and more on the Extramarks website.

Get Access to CBSE Class 11 Business Studies Important Questions 2022-23 with Solutions



1	Chapter 1
2	Chapter 2
3	Chapter 3
4	Chapter 4
5	Chapter 5
6	Chapter 6
7	Chapter 7	Formation of a Company
8	Chapter 8
9	Chapter 9
10	Chapter 10
11	Chapter 11

Business Studies Class 11 Chapter 7 Questions and Answers

A team of Extramarks Business Studies experts has developed an entire list of Important Questions in Class 11 Business Studies Chapter 7 , taking references from numerous primary and secondary sources. These questions include a wide variety of topics, such as essential stages in the formation of a company, steps involved in each stage of company formation, documents to be submitted to the registrar of companies, the need for a certificate of incorporation and certificate to commence business and so on. These questions and their solutions help students better comprehend the formation of a company.

Given below are a few Important Questions from Class 11 Business Studies Chapter 7 , along with their solutions:

Q1. At which stage does a company’s formation interact with SEBI?

Answer. A corporation must communicate with the Securities and Exchange Board of India (SEBI) during the capital subscription stage. The contact is necessary since the company is currently trying to obtain funds from the public by issuing shares and debentures. Before issuing shares or moving forward with capital subscription, SEBI clearance is required since the company must follow guidelines established by SEBI for issuing such shares.

Q2. Experts who help promoters in the promotion of a company are also called promoters. True or False?

Answer. False. A promoter has the idea for starting a business and takes the necessary steps to make it materialise. Conversely, experts who help promoters advertise a company are not referred to as promoters. They are only there to support the sponsors.

Q3. The following categories of promoters exist:

Entrepreneur Promoter: An entrepreneur is a person who comes up with the concept for a new company and makes all the effort to get it off the ground. He still runs and oversees the company he has promoted. Entrepreneurs support small businesses like sole proprietorships and partnerships. He takes on the risk and is proactive in promoting the business.
Professional Promoter: These promoters are experts in promoting start-up businesses. Experts frequently endorse large-scale businesses. These professionals have the abilities and expertise required for advancement. They present a company as a continuing concern before offering to sell it, transfer control of the company’s management, or both.
Financial Promoters: These promoters list new firms when the securities market is advantageous. Due to their background in the financial industry, banks and other financial institutions also carry out the task of promotion. Investment bankers become active in the promotion sector when the securities market can accommodate the fresh issuance of equity shares. In India, industrial concerns are fostered through the Industrial Development Bank of India and other financial organisations.
Occasional Promoters: Instead of doing so frequently, some promoters only do so occasionally. After marketing a company, they return to their primary employment because promotion is not their primary responsibility. For instance, a technical specialist or engineer may encourage a firm to utilise a patent or idea he has developed financially. Even after the firm has been incorporated, they continue to oversee its affairs.
Government: In modern times, the government has taken the lead in the promotion. For instance, the Indian government has built several fundamental, strategic, and defence industries to hasten the nation’s economic growth. Large-scale businesses in industries including iron and steel, coal, shipping, fertilisers, electronics, engineering, insurance, tourism, and hotels have benefited from its promotion.

Q4. Name the stages in the formation of a Company.

Answer. Major steps in the formation of a company are as follows:

Promotion: This phase focuses on developing and implementing ideas as a business.
Incorporation: Application for and receipt of a certificate of incorporation is the first step in this process, doing business as a legal person in the eyes of the law.
Capital subscription: At this stage, money is raised by selling bonds and stocks to the general public.
Beginning of business: At this point, all procedures are finished, and the business is officially launched.

Q5. Discuss the stages in the formation of a company?

Answer. A company is formed when it is registered or incorporated with the state’s registrar of corporations in the state where its registered office will be situated.

The stages of a company’s formation are as follows:

Promotion of a company refers to performing all required actions to establish a company in accordance with the Act’s provisions. Someone first comes up with the concept for the possible business.
Promoters are the people who carry out the duty of promotion. An individual, a partner, a business, an association, or a syndicate can all be promoters.
He performs the following role:
Recognising a business opportunity
Possibility analysis
Approval of a name
Putting together the Signatories of the Memorandum of Association.
The appointment of experts
Preparing the required paperwork

Incorporation

The promoters choose whether to incorporate a public company or a private corporation based on the company’s objectives, the scope of operations, required money, etc.
The Registrar of Companies where the firm’s business office will be located shall receive the application for registration of a company.
The start of a company’s legal existence is the date listed on the Certificate of Incorporation.
It acquires legal status and eternal succession on that day. It obtains the capacity to sign contracts that are enforceable by law.
The indisputable evidence of a company’s legal establishment is the Certificate of Incorporation.

Beginning of a Business

After receiving the Certificate of Incorporation from the Registrar of Companies, a public or private company without share capital may start operating immediately.
If a business wants to raise money from the public, SEBI approval is necessary. Businesses must send a copy of the prospectus or a statement to the Registrar of Companies. There is employment of bankers, brokers, underwriters, and other experts.
Businesses must contact the stock exchange if they want to deal in shares or debentures.
The business must also submit documentation to the registrar proving the location of its registered office.

Q6. ‘Statement instead of Prospectus’ What does it mean?

Answer. Statement instead of Prospectus: Public companies with a share capital may occasionally elect not to solicit funding from the public because they may be confident they can secure the funding privately. In this situation, it will need to submit a “Statement instead of a Prospectus” to the registrar. According to the “Schedule III” information of the Companies Act, a “Statement in place of a Prospectus” is written. It provides details that are comparable to those in a prospectus.

Businesses must submit a copy of it to the registrar at least three days before the allocation of the shares, and each of the directors must duly sign this copy. A private corporation must, however, submit either a “Statement in the Lie of Prospectus” or a “Prospectus” to the registrar. Each director’s date and signature must be on the “Statement instead of Prospectus.” There shouldn’t be any false or deceptive statements in it. Untrue information in a statement instead of a prospectus is subject to the provisions addressing the penalty for releasing a false prospectus. A private corporation is not allowed to solicit money. Hence it is not necessary to submit a prospectus or a statement instead of a prospectus.

Q7. List the documents required for the incorporation of a company.

Answer. The following documents are required for incorporation registration:

Memorandum of Association: The properly stamped, signed, and witnessed Memorandum of Association. A minimum of seven members must sign it in the event of a public business. However, two members’ signatures are necessary for a private business.
Articles of Association: The Articles of Association should be officially stamped and attested, just as the Memorandum. This document, which outlines the potential methods for achieving the goals of the MOA, is equally crucial for the organisation.
Director’s Approval: Written consent of the prospective directors to serve as directors and an agreement to acquire the Qualifying Shares. Also required is the consent of the proposed Managing Director, Manager, or whole-time director.
List of Directors: The people who have consented to serve as directors are included, along with their names, residences, and other pertinent information.
Registrar’s Letter: A duplicate of the registrar’s letter authorising the business’s name.
Statutory Declaration: A statutory declaration confirming the fulfilment of all registration criteria. It must be correctly signed.
Documentary Evidence: Proof in writing that the registration costs have been paid.
Prospectus: Prospectus is also required if a corporation plans to raise money from the public.

Q8. What is meant by the term ‘Promotion’. Discuss the legal position of promoters concerning a company promoted by them.

Answer. Promotion is the first stage in a company’s establishment. Taking the required actions to incorporate a business by the provisions of the Company Act, 2013 is referred to as “promotion of the company.” Promoters are the people who carry out the duty of promotion. An individual, a partner, a business, an association, or a syndicate can all be promoters.

Regarding a business they have promoted, promoters are in the following legal positions:

The people forming the company, or the “promoters,” are neither its trustees nor its agents. Promoters are the ones who have the first company concept.
If any profits were gained through the contracts he signed on behalf of the business, he represents; they must be disclosed.
They oversee creating the necessary paperwork for a company’s establishment.
Promoters are eligible for nomination as the company’s first directors.
They aren’t permitted to get an unreported profit while marketing a business.
In exchange for their services, a company may decide to grant them shares.

Q9. Describe how a company is formed.

Answer. A company must go through several legal formalities and processes throughout its complex formation. Three steps make up the creation process for a company: promotion, incorporation, and subscription. In contrast to limited public corporations, private businesses cannot solicit money from the public, and they are not required to publish a prospectus to fulfil the formalities.

Q10. What is a prospectus? Is it necessary for every company to file a prospectus?

Answer. A prospectus is a company’s invitation to the public outlining the possibility of subscribing to or purchasing shares and debentures issued by the company. Initial Public Offering, or IPO, is a method of acquiring money from the public. However, as private corporations are prohibited from issuing IPOs, there is no need to file a prospectus in the case of a private company. If raising cash from the public is the goal, a prospectus can be necessary. Private businesses are exempt from submitting prospectuses.

Q11. What is a “Memorandum of Association”? Briefly explain its clauses.

Answer. A company’s primary document, the Memorandum of Association, outlines the organisation’s goals. The Memorandum is a document that outlines the company’s bylaws and any rights or privileges it may have. The following clauses are among those included in the Memorandum of Association:

The MOA’s clauses are:

Name Clause: The name of the business that has already received approval from the Registrar of Companies is included in this section.
Registered Office Clause: The intended location of the company’s registered office is specified, along with the state. Although it is not necessary to submit a precise address, the registrar must receive it within thirty days of the company’s creation.
Object’s Clause: This details the motivation for the company’s founding. A company is not allowed by law to do any activity unrelated to the goals outlined in this section.
Liability Clause: By this provision, the members’ liability is limited to the outstanding debt on the shares they possess.
Capital Clause: The maximum amount of capital that the company may raise via the issuing of shares is determined by this provision. The permissible share capital of the new company is specified, as well as how many shares would have a set face value.
Subscription Clause: The MOA’s sixth and final clause, the subscription provision, requires the subscribers to express their desire to incorporate the business and accept the number of shares specified in the Memorandum.

Q12. What is the meaning of “Certification of Incorporation”?

Answer. A company becomes a legal entity on the date printed on the Certificate of Incorporation. After the incorporation certificate is final, a firm can enter legal contracts. It serves as proof of a company’s legitimacy and the accuracy of its incorporation.

After receiving a certificate of incorporation, a business acquires legal status. A private company can begin operations immediately and obtain money from friends, family, or other arrangements. Still, a public corporation must go through two other processes to finalize its establishment.

The above-stated section of Important Questions Class 11 Business Studies Chapter 7 is a list of Important Questions which covers the entire chapter.

Benefits of Solving Business Studies Class 11 Chapter 7 Important Questions

As mentioned earlier, a theoretical subject like Business Studies demands continuous reading and revision. The basics of Class 11 prepare a student for Class 12 board examinations. Class 11 students are advised to go through Extramarks Important Questions Class 11 Business Studies Chapter 7. The list of important questions can make this subject easy to understand as the answers are written in an easy-to-understand manner and give detailed information to the students. Some of the benefits of solving class 11 business studies chapter 7 important questions are as follows:

Important Questions Class 11 Business Studies Chapter 7 covers the concepts of the entire chapter- Formation of a Company.
Students can completely rely upon these important questions as they are prepared to adhere to the guidelines laid by CBSE .
These important questions are prepared by following the CBSE exam pattern. Going through these will help students prepare for exams too because most of the questions from NCERT books are picked by the CBSE board.

Extramarks provides comprehensive learning solutions for students from Class 1 to Class 12. We have abundant resources available on our website along with essential questions and solutions. Students can click on the links given below to access some of these resources:

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Q.1 What is the minimum period and time that can be extended upto in case of issue of Inter-corporate deposits

A. 7 days, 1 year

B. 10 days, 2 years

C. 12 days , 5 years

D. 1 months, 6 years

Marks: 1 Ans

7 days, 1 year

Q.2 Based on ownership into how many classes can funds be classified

A. Two classes

B. Three classes

C. Four classes

D. Five classes

Two classes

Q.3 Nitu Wears a garment manufacturing company has received large orders due to fast approaching Diwali festival. The company is in need of funds for increased operations. Advice the company, on the various sources of finance it can tap to raise the required funds.

Marks: 6 Ans

Nitu Wears needs finance for short duration to meet the pending orders, hence it should tap the short term sources of finance for this purpose.

The various short term sources of finance are described as under:

i. Trade Credit Refers to the credit extended by one trader to another for the purchase of goods and services. It helps a trader to purchase goods without making immediate payment. It is generally granted for a period ranging between 3 to 6 months. This form of finance is a readily available. It does not create any charge on the assets of the purchasing company.

ii. Banks Banks extend short term loans to firms in different ways- cash credits, overdrafts, term loans, discounting of bills. Repayment of loans may be in lump sum or in installments. The borrower needs to provide some security to avail such loans. This source of fund can be available timely and is flexible, funds can be borrowed as and when needed in the required amount.

iii. Commercial Paper (CP) This is an unsecured promissory note issued by a firm to raise funds for a period varying between 9 days to 1 year. Large amounts can be raised. It is a cheaper source of finance than bank credit. Maturing CP can be repaid by purchasing new CP, thus it is continuous source of funds. It does not create any charge on the assets of a company.

iv. Factoring This involves services – discounting of bills of clients and providing information on credit worthiness of prospective clients. In discounting of bills, the bills of exchange received from sale of goods or services are encashed before maturity from a bank or a factor, at a certain discount. The factor may or may not bear bad debts of the client. It is a cheaper source of finance than bank credit and does not create any charge on borrower’s assets.

Q.4 Explain the different types of Debentures issues allowed in India. Is there any limitation of this source of fund

The different types of debentures allowed in India are:

i. Secured and Unsecured : Secured debentures are such which create a charge on the assets of the company, thereby mortgaging the assets of the company.

Unsecured debentures on the other hand do not carry any charge or security on the assets.

ii. Registered and Bearer : Registered debentures are those which are recorded in the register of debenture holders maintained by the company. These can be transferred only through a regular instrument of transfer.

Debentures which are transferable by mere delivery are called bearer debentures.

iii. Convertible and Non-Convertible : Convertible debentures are those debentures that can be converted into equity shares after the expiry of a specified period.

Non-convertible debentures are those which cannot be converted into equity shares.

iv. First and Second : Debentures that are repaid before other debentures are repaid are known as first debentures.

Second debentures are those which are paid after the first debentures have been paid back.

Debentures have certain demerits, which are as follows :

i. They are a burden on the earnings of the issuing company due to the fixed interest required to be paid on them.

ii. Company has to make provision for repayment of debentures on the specified date, even in case of inadequate profits.

iii. The borrowing capacity of the company reduces after a debenture issue, due to the payment obligations and charge on assets.

Q.5 It is crucial for business firms to have an ideal capital structure i.e. an adequate mix of borrowed capital and owners capital. The finance manager needs to be efficient to prepare an effective financial plan and consider all financial management decisions so that the objective of maximisation of shareholders wealth is achieved. It is important to keep in mind that excess of owners fund may impact the earnings of the firm while excess of borrowing can affect the credibility as well as increase the financial risk of the firm. It is important for firms to understand the distinction between owners fund and borrowed funds. How are owners funds different from borrowed funds Explain.

Marks: 5 Ans

Difference between owners funds and borrowed funds

Basis	Owners Funds	Borrowed Funds
Meaning	Involves funds contributed by owner of the business	Involves funds being taken on credit from outsiders
Risk	Involves high business risk as not secured	Debts of company are secured
Control	There is dilution of control among the shareholders or owners of company.	There is no dilution of control
Reward	Dividend is received	Interest is received
Priority	Dividends are paid after payment of interest on borrowed funds	Payment of interest is made before payment of dividend

Q.6 A-One is a family-owned private limited company. It makes a range of bags for children, using batch production and operates in a competitive market. Like many other businesses, A-One needs finance for a number of reasons. The Finance Director has been looking at some financial data. An extract is shown here. Some of the directors brought forward the plan of expanding into the womens bag market and want to see whether A-Ones performance is improving.

Explain the concept highlighted here. Why do you think A-One needs money

Marks: 4 Ans

The concept highlighted here is Business Finance. Business require funds to carry out its various activities. This is known as business finance. A business can only function if adequate funds are made available to it. These business requirements can be categorized as: Fixed capital requirements and Working Capital Requirements

A business needs finance:

I.When an entrepreneur makes a decision to start a business

II. For purchase of plant and machinery, furniture, and other fixed assets

For day-to-day operations such as purchase raw materials, pay salaries to employees, etc.

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Cbse class 11 business studies important questions, chapter 1 - business, trade and commerce.

Chapter 2 - Forms of Business Organisation

Chapter 3 - private, public and global enterprises, chapter 4 - business services, chapter 5 - emerging modes of business, chapter 6 - social responsibilities of business and business ethics, chapter 8 - sources of business finance, chapter 9 - small business, chapter 10 - internal trade, chapter 11 - international business, faqs (frequently asked questions), 1. where can we access the important questions class 11 business studies chapter 7.

Using the Extramarks website, you can obtain Important Questions Class 11 Business Studies Chapter 7. These solutions offer meticulously prepared , concise, point-by-point, and error-free answers based on the most recent CBSE curriculum and exam pattern . Access to these solutions is provided online. Students can learn how to write practical answers for the exam by studying from Extramarks NCERT Solutions and excel in their exams.

2. Describe the steps involved in a company's formation.

The first step in establishing a company is promotion, which incorporates a concept or a business strategy and its implementation to build a company, as mentioned in Important Questions Class 11 Business Studies Chapter 7 . The application for and receipt of the certificate of incorporation constitute the second stage, which is known as incorporation. The third step, Issuing Shares & Debentures, involves capital raising and the public issuance of stocks and debentures. The company can start doing business after completing the fourth and final stage, the Commencement of Business.

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Chapter 2 - Forms of Business Organisation

2. Describe the steps involved in a company's formation.

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