Kaizen Commerce Academy

Business Studies
Test of Chapter- 1, 2, 3, 5
Maximum Marks: 80
Q- 1. Fill in the blanks: (5)

(i) The principle of is not applicable to life insurance..

(ii) Long term contracting out the non core activities of business is called
(iii) is regarded as the Constitution of Company.
(iv) Credit cards and debit cards are also referred to as .
(v) . is a voluntary association of persons who get together to protect
their economic interests.

Q- 2. Write true or false: (5)

(i) The Board of Directors of a joint stock company is elected by the Government.
(ii) The insurance company is liable to pay the insured in case of loss even if the insured
did not take reasonable steps to minimize the loss.
(iii) e-business does not include interactions among the geographically dispersed units of
the business.
(iv) Code of conduct should be followed only by the Top Management.
(v) The occupation in which people work for others and get remunerated in return is known
as profession.

Q- 3. What is the need for outsourcing? And what are the concerns associated with it? (6)

Q- 4. Ram, Kashyap and Parth were partners in a firm. Kashyap met an accident and he died. Later
it was decided by the remaining two partners to introduce Mihir, Kashyap’s son, who was 15 years
in age, as their third partner. After few months, it was decided to dissolve the partnership firm in
view of lack of finance.
(i) One of the creditors suggested to use Mihir’s personal assets for paying off his debt as
the business assets were insufficient. Kindly suggest. (3)
(ii) What would be the status of a minor in the partnership when he attains majority? (3)

Q- 6. Sachin’s father had gifted him his old laptop. Sachin wanted a latest laptop with some
advanced features on his upcoming birthday. As the old laptop was not needed by his father, he
decided to sell the laptop on olx.com and then purchase a new one. Sachin sold his laptop and was
very delighted to make his first business deal. Can the transaction by Sachin be termed as business
transaction? Why or why not? State the relevant features of business. (6)

Q- 7. Identify the type of company which may be formed with a minimum share capital of! 1 Lakh
only. Explain any 5 privileges enjoyed by it. (6)

Q- 10. Unique enterprise is dealing in auto spare parts. With the expansion in business the
enterprise found that the decisions are delayed and level of coordination is coming down. The CEO
called for a meeting of all the managers. Ravi, a newly appointed manager, suggested that the
company should have its own internet so that all the employees can interact and pass important
information to each other through internet. Even short meetings of different departments can be
conducted through video conferencing to take fast action. The CEO liked the idea and installed an
internet for connecting all the employees online.
(i) Which branch of e-business is suggested by Mr. Ravi? (1)
(ii) What are the benefits provided by e-business? (3)
(iii) What are its limitations? (3)

Q- 6. “Profit is not an objective but a requirement of business.” Explain.(5)

Q- 7. A, b and C are partners in a firm manufacturing autoparts. Their firm is not registered. In
order to increase the earnings of the firm, B decided to use low quality raw materials without the
knowledge of A and C. As a result many accidents were reported by the consumers and a case has
been filed against the firm.
(a) Is this wrong act of B binding on A & C? (1)
(b) State the feature related to this. (1)
(c) Can consumers file case on unregistered firm? (1)
(d) Can A and C file case on B? (1)
(e) Had the firm been registered what difference could it make? (4)

Q- 14. Why are e-business and outsourcing referred to as the emerging modes of business? Discuss
the facts responsible for the growing importance of these trends? (5)