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Karnataka 1st PUC Business Studies Model Question Paper 5 with Answers

Time: 3.15 Hours
Max Marks: 100

Instructions to candidates:

  1. Write the serial number of questions properly as given in the question paper while answering
  2. Write the correct and complete answers.

Section – A

I. Answer any ten of following questions in a word or a sentence each. While answering Multiple Choice Questions, write the serial number/alphabet of the correct choice and write the answer corresponding to it. Each question carries one mark: ( 10 × 1 = 10 )

Question 1.
Give an example for Genetic Industry.
Seeds and nursery company, poultry farms.

Question 2.
The head of the Joint Hindu Family business is called
(a) Proprietor
(b) Director
(c) Karta
(d) Manager
(c) Karta

Question 3.
Mention any one feature of Global Enterprise.
Huge financial resources.

Question 4.State any one type of warehouse.
Public warehouse.

Question 5
Expand BPO.
Business Process Outsourcing.

Question 6.
‘A business enterprise must behave as a good citizen – is an example of its responsibility towards
(a) Owners
(b) Workers
(c) Consumers
(d) Community
(d) Community.

Question 7.
Directors of which type of company have to subscribe qualification shares?
Public company.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 5 with Answers

Question 8.
State any one type of Debentures.
Convertible debentures.

Question 9.
In which year was the MSMED Act enacted?
16 June 2006.

Question 10.
The goods not suitable for Mail Order Business is A
(a) Those which can be graded and standardized
(b) Those which can be transported at low cost
(c) Those which have ready demand in the market
(d) Those which are perishable and bulky

(d) Those which are perishable and bulky

Question 11.
Give an example of a business organization that has entered into the international business through a franchising system.
General motors.

Question 12.
Which of the following documents is not required in Import Procedure?
(a) Trade Enquiry
(b) Bill of Entry
(c) Import General Manifesto
(d) Certificate of Origin
(d) Certificate of Origin

Section – B

II. Answer any ten of the following questions in two or three sentences each. Each question carries 2 marks: ( 10 × 2 = 20 )

Question 13.
State any two Auxiliaries to trade.
(a) Banking and Finance
(b) Transport and Communication

KSEEB Solutions 1st PUC Business Studies Model Question Paper 5 with Answers

Question 14.
Compare active partner with Partner by Estoppel.

  1. Active partners contribute capital whereas partner by estoppel does not contribute capital.
  2. Active partners participate in management whereas partner by estoppel does not participate in management.

Question 15.
State any two merits of Departmental Undertakings.
The two benefits of departmental undertakings are:
(a) These ensure a high degree of public accountability.
(b) The revenue earned by the enterprise goes directly to the treasury and hence is a source of income for the government.

Question 16.
Name any two types of Telecom Services.
(a) Cellular mobile services
(b) Radio paging services.

Question 17.
Give the meaning of Cookies in online transactions.
A cookie is an information that a website puts on your hard disk so that it can remember something about you at a later time. In other words, it is information for future use that is stored by the server on the client-side of a client/server communication.

Question 18.
State any two arguments for Social Responsibility of Business.
The arguments for social responsibilities are:
(a) Public image: The activities of business towards the welfare of the society earn goodwill and reputation for the business. The earnings of a business also depend upon the public image of its activities.

(b) Government regulation: To avoid government regulations businessmen should discharge their duties voluntarily.

(c) Survival and growth: Every business is a part of society. So for its survival and growth, support from society is very much essential. The business utilizes the available resources like power, water, land, roads, etc. of the society. So it should be the responsibility of every business to spend a part of its profit for the welfare of society.

(d) Employee satisfaction: Besides getting a good salary and working in a healthy atmosphere, employees also expect other facilities like proper accommodation, transportation, education, and training. Employers should try to fulfill all the expectations of the employees because employee satisfaction is directly related to productivity.

Question 19.
State any two important documents for the incorporation of a company.
(a) Memorandum of Association.
(b) Articles of Association.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 5 with Answers

Question 20.
Who are the parties to a Lease Contract?
Lessor and Lesser.

Question 21.
What is the meaning of Cottage Industries?
Cottage industries are those industries that are organized by individuals using family labor indigenous technology, etc.

Question 22.
State any two types of Itinerant Retailers commonly seen in our country.

  1. Hawkers a and Peddlers.
  2. Market traders.

Question 23.
State any two reasons for International Business.

  1. To earn higher profit.
  2. To improve business vision.

Question 24.
Name any two Commodity Boards established by the Government of India.
(a) Coffee Board.
(b) Rubber Board.

Section – C

III. Answer any seven of the following questions in 10-12 sentences. Each question carries 4 marks: ( 7 × 4 = 28 )

Question 25.
Explain briefly any four characteristics of Business.
(a) An economic activity: Business is considered to be an economic activity because it is undertaken with the object of earning money or livelihood and not because of love, affection, sympathy, or any other sentimental reason.

(b) Dealings in goods and services on a regular basis: Business involves dealings in goods or services on a regular basis. One single transaction of sale or purchase does not constitute a business.

(c) Profit earning: One of the main purposes of business is to earn income by way of profit. ‘No business can survive for long without earning profit. That is why businessmen make all possible efforts to maximize profits, by increasing the volume of sales or reducing costs:

(d) Sale or exchange of goods and services: Directly or indirectly, business involves the transfer or exchange of goods and services for the value. If goods are produced not for the purpose of sale but say for internal consumption, it cannot be called a business activity.

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Question 26.
State any two merits and two limitations of Statutory Corporations. ;
The benefits of the statutory corporation are:
(a) They enjoy independence in their functioning and a high degree of operational flexibility. They are free from undesirable government regulation and control.

(b) Since the funds of these organizations do not come from the central budget, the government generally does not interfere in their financial matters, including their income and receipts.

(c) Since they are autonomous organizations they frame their own policies and procedures within the powers assigned to them by the Act. The act may, however, provide few issues! matters which require prior approval of a particular ministry.

(d) A statutory corporation is a valuable instrument for economic development. It has the power of the government, combined with the initiative of private enterprises.

(a) In reality, a statutory corporation does not enjoy as much operational flexibility as stated above. All actions are subject to many rules and regulations.
(b) Government and political interference has always been there in major decisions or where huge funds are involved.

Question 27.
What is e-banking? State the benefits of e-banking to banks.
E-banking or Electronic banking means the conduct of banking operations through electronic means or devices such as computers, telephones, mobile phones, ATMs, etc.

Benefits of E-Banking Services:
(a) E-banking provides 24 hours, 365 days a year services to the customer of the bank.
(b) The operating cost per unit services is lower for the banks.
(c) It offers convenience to customers as they are not required to go to the bank’s premises.
(d) There is a very low incidence of errors.
(e) The customer can obtain funds at any time from ATM machines.
(f) The customer can easily transfer the funds from one place to another place electronically.

Question 28.
Explain the concept of Outsourcing.
Outsourcing is the process by which a company of contracts with another company to provide particular services. In other words, it refers to getting the work done through outside expert agencies.

Features of Outsourcing
Outsourcing Involves Contracting Out: Many companies have started outsourcing processes to outside expert agencies (i.e. to other organizations) on a contractual basis. The outsources charges fees for performing his services on a contract basis.

Generally, Non-core Business Activities are Outsourced: Depending upon what business a company is in, there will be some activities that are central and critical to its basic business purpose. Other activities may be regarded as secondary or incidental to fulfilling that basic purpose. Only those activities (other activities) are outsourced to outside agencies.

Processes may be Outsourced to a Third Party: The processes are outsourced to the service provider (i.e. third party) who operates independently in the market and provides services to other firms too.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 5 with Answers

Question 29.
Explain briefly any four elements of Business Ethics.
Business ethics is defined as a set of moral standards which society expects from businessmen.
The elements of business ethics are:
(a) Publication of a code.
(b) Top management’s commitment.

Question 30.
State any four privileges of a Private Company as against a Public Company.
(a) A private company is simpler to form than a public company. It needs two directors while a public company needs three.
(b) It can start business immediately after m-corporation, no certificate to commence is required but in a public company, it is necessary to have a certificate to commence business.
(c) Since a private company collects the requisite capital by private arrangement and does not invite the general public to buy its shares by the issue of a prospectus, it may allot shares without following the formalities of a public company.
(d) As no outsiders are its shareholders it is not required, unlike a public company, to hold a statutory meeting.

Question 31.
Explain the financial needs of a business.
(a) To purchase fixed assets: Every type of business needs some fixed assets like land and building, furniture, machinery, etc. A large amount of money is required for the purchase of these assets.

(b) To meet day-to-day expenses: After the establishment of a business, funds are needed to carry out day-to-day operations.

(c) To fund business growth: Growth of business may include expansion of the existing line of business as well as adding new lines. To finance such, growth, one needs more funds.

(d) To bridge the time gap between production and sales: The amount spent on production is realized only when sales are made. Normally, there is a time gap between production and sales and also between sales and realization of cash. Hence during this interval, expenses continue to be incurred, for which funds are required.

(e) To meet contingencies: Funds are always required to meet the ups and downs of business and for some unforeseen problems.

Question 32.
Write short notes on:
(a) Equity Shares
(b) Preference Shares
Equity Shares:
(a) Equity shares represent the ownership of a company and thus the capital raised by the issue of such shares is known as ownership capital or Ówner’s funds.
(b) Equity shares are shares, which do not enjoy any preferential right in the matter of the claim of dividend or repayment of capital.
(c) Equity shareholders are regarded as the owners of the company who exercise their authority through the voting rights they enjoy.

Preference Shares:
(a) The capital raised by the issue of preference shares is called preference share capital.

(b) The preference shareholders enjoy a preferential position over equity shareholders in two ways:

  • Receiving a fixed rate of dividend, out of the net profits of the company, before any dividend is declared for equity shareholders.
  • Receiving their capital after the claims of the company’s creditors have been settled, at the time of liquidation.

(c) In other words, as compared to the equity shareholders, the preference shareholders have a preferential claim over dividend and repayment of capital. Preference shares resemble debentures as they bear a fixed rate of return. Also as the divide and is payable only at the discretion of the directors and only out of profit after tax, to that extçnt, these resemble equity shares.

(d) Thus, preferéncshares have some characteristics of both equity shares and debentures. Preference slanders generally do float enjoy any voting rights.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 5 with Answers

Question 33.
Explain any four problems faced by small businesses.
(a) Finance: The most serious problem faced is the non-availability of adequate finance to carry out their operations. Small scale sector lacks the creditworthiness and collateral required to raise capital from the capital markets or financial institutions and hence they depend on local money lenders who charge high-interest rates.

(b) Raw materials: Another major problem of small businesses is the procurement of raw materials. If the required materials are not available, they have to compromise on the quality or have to pay a high price to get good quality materials. They purchase raw materials in small quantities due to a lack of storage capacity and hence their bargaining power is low.

(c) Managerial skills: Small business is generally promoted and operated by a single person, who may not possess all the managerial skills required to run the business. Many of small business entrepreneurs possess sound technical knowledge but are less successful in marketing and may not find enough time to take care of all functional activities.

(d) Less productive labor: Small business firms cannot afford to pay high salaries to their employees, which affects employee willingness to work. Thus, productivity per employee is relatively low and employee turnover is generally high. Small business organizations are unable to attract talented people because of lower remuneration. Division of labor cannot be practiced in small-scale units, which results in a lack of specialization and concentration.

Question 34.
Explain briefly any four services of retailers to consumers.
A retailer is a business enterprise that is engaged in the sale of goods and services directly to the ultimate consumers. He normally buys goods in large quantities from wholesalérs and sells them in small quantities to the ultimate consumers.
(a) Regular availability of products: The most important service of a retailer to consumer is to maintain regular availability of various products produced by different manufacturers.

(b) New products information: By arranging for effective display of products and through their personal selling efforts, retailers provide important information about the arrival, special features, etc., of new products to the customers.

(c) Convenience in buying: Retailers generally buy goods in large quantities and sell these in small quantities, according to the requirements of their customers.

(d) Wide selection: Retailers generally keep stock of a variety of products of different manufacturers. This enables the consumers to make their choice out of a wide selection of goods.

(e) Provide credit facilities: The retailers sometimes provide credit facilities to their regular buyers. This enables the latter to increase their level of consumption and, thereby, their standard of living.

(f) After-sales services: Retailers provide important after-sales services in the form of home delivery, supply of spare parts, and attending to customers.

Section – D

IV. Answer any four of the following questions in 20-25 sentences each. Each question carries 8 marks: ( 4 × 8 = 32 )

Question 35.
Explain the merits and demerits of the Sole Proprietorship form of a business organization.
Advantages of Sole Proprietorship:
(a) Quick decision making: A sole proprietor enjoys a considerable degree of freedom in making business decisions. Further, the decision-making is prompt because there is no need to consult others.

(b) Confidentiality of information: Sole decision-making authority enables the proprietor to keep all the information related to business operations confidential and maintain secrecy.

(c) Direct Incentive: The need to share profits does not arise as he/she is the single owner. This provides a maximum incentive to the sole trader to work hard.

(d) Sense of accomplishment: There is a personal satisfaction involved in working for oneself. The knowledge that one is responsible for the success of the business not only contributes to self-satisfaction but also instills in the individual a sense of accomplishment and confidence in one’s abilities.

Limitations of a sole proprietorship:
(a) Limited resources: Resources of a sole proprietor are limited to his/her personal savings and borrowings from others. Banks and other lending institutions may hesitate to extend a long-term loan to a sole proprietor.

(b) Limited life ola business concern: In the eyes of the law the proprietorship and the owner are considered one and the same. Death, insolvency, or illness of a proprietor affects the business and can lead to its closure.

(c) Unlimited liability: If the business fails, the creditors can recover their dues not merely from the business assets, but also from the personal assets of the proprietor. A poor decision or an unfavorable circumstance can create a serious financial burden on the owners.

(d) Limited managerial ability: The owner has to assume the responsibility of varied managerial tasks such as purchasing, selling, financing, etc. It is rare to find an individual who excels in all these areas. Thus, decision-making may not be balanced in all cases.

(e) Competition of big Industries: Nowadays in a modem world demands are more. To full fill, those numerous demands big industries were formed. By producing goods on a large scale, supply them at low rates and also provide another number of facilities. As such sole trading concern is unable to complete with them.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 5 with Answers

Question 36.
Explain the types of Co-operative Societies.
Types of Co-operative society:
1. Consumer’s cooperative societies:
(a) The consumer cooperative societies are formed to protect the interests of consumers.
(b) The members comprise consumers desirous of obtaining good quality products at reasonable prices.
(c) The society aims at eliminating middlemen to achieve economy in operations.
(d) It purchases goods in bulk directly from the wholesalers and sells goods to the members directly.
(e) Profits, if any, are distributed on the basis of either their. capital contributions to the society or purchases made by individual members.

2. Producer’s cooperative societies:
(a) These societies are set up to protect the interest of small producers.
(b) The members comprise producers desirous of pricing inputs for the production of goods to meet the demand of con súmers.
(c) The society aims to fight against the big capitalists and enhance the bargaining power of the small producers.
(d) It supplies raw materials, equipment, and other inputs to the members and also buys their output for sale.
(e) Profits among the members are generally distributed on the basis of their contributions to the total pool of goods produced or sold by the society.

3. Marketing cooperative societies:
(a) Such societies are established to help small producers in selling their products.
(b) The members consist of producers who wish to obtain reasonable prices for their output.
(c) The society aims to eliminate middlemen and improve the competitive position of its members by securing a favorable market for the products.
(d) It pools the output of individual members and performs marketing functions like transportation, warehousing, packaging, etc.
(e) Profits are distributed according to each member’s contribution to the poor of output.

4. Farmer’s cooperative societies:
(a) These societies are established to protect the interests of farmers by ptovidíng better inputs at a reasonable cost.
(b) The members comprise farmers who wish to jointly take, up farming activities.
(c) The aim is to gain the benefits 9f large-scale farming and increase productivity.
(d) Such societies provide better quality seeds, fertilizers, machinery, and other modem techniques.

5. Credit cooperative societies:
(a) Credit cooperative societies are established for providing easy credit on reasonable terms to the members.
(b) The members comprise persons who seek financial help in the form of loans.
(c) The aim of such societies is to protect the members from the exploitation of lenders who charge high rates of interest on loans.
(d) Such societies provide loans to members out of the amounts collected as capital and deposits from the member’s aid charge low rates of interest.

6. Cooperative housing societies:
(a) To help people with limited income to construct houses at reasonable costs.
(b) The members of these societies consišt procuring residential accommodation at lower costs.
(c) The aim is to solve the housing problems of the members by constructing houses and giving them the option of paying in installments.
(d) These societies construct flats or provided them to members On which the members themselves can construct the houses as per their choice.

Question 37.
Explain briefly the principles of Insurance.
(a) Principle of Utmost Good Faith: According to this principle, the insurance contract must be signed by both parties (i.e. insurer and insured) in absolute good faith or belief or trust. The person getting insured must willingly disclose and surrender to the insurer his complete true information regarding the subject matter of insurance.

Example: 1f any person has taken a life insurance policy by hiding the fact that he is a cancer patient and later on if he dies because of cancer then Insurance Company can refuse to pay the compensation as the fact was hidden by the insured.

(b) Principle of Insurable Interest: As per this principle, the insured must have an insurable interest in the subject matter of insurance. It means the insured should gain by the existence or safety and lose by the destruction of the subject matter of insurance.

Example: If a person has taken the loan against the security of factory premises then the lender can take the fire insurance policy of that factory without being the owner of the factory because he has a financial interest in the factory premises.

(c) Principle of Indemnity: According to the principle of indemnity, an insurance contract is signed only for getting protection against unpredicted financial losses arising due to future uncertainties. The insurance contract is not made for making a profit else its sole purpose is to give compensation in case of any damage or loss.

Example: A person insured a car for 5 lakhs against damage or an accident case. Due to accident, he suffered a loss of 3 lakhs, then the insurance company will compensate him 3 lakhs not only the policy amount i.e., but 5 lakhs as the purpose behind it is also to compensate not to make a profit.

(d) Principle of Contribution: According to this principle, the insured can claim the compensation only to the extent of actual loss either from all insurers in a proportion or from any one insurer.

Example A person gets his house insured against fire for 50,000 with insurer A and for 25,000 with insurer B. A loss of 37,500 occurred. Then A is liable to pay 25,000 and B is liable to pay 12,500.

(e) Principle of Subrogation: According to the principle of subrogation, when the insured is compensated for the losses due to damage to his insured property, then the ownership right of such property shifts to the insurer.

Example: If a person receives Rs. 1 lakh for his or her damaged stock, then the ownership of the stock will be transferred to the insurance company and the person will hold no control over the stock.

(f) Principle of Mitigation of Loss: According to the Principle of mitigation of loss, the insured must always try his level best to minimize the loss of his insured property, in case of uncertain events like a fire outbreak or blast, etc. The insured must not neglect and behave irresponsibly during such events just because the property is insured.

Example: ¡f a person has insured his house against re, then, in case of fire, he or she should take all possible measures to minimize the damage to the property exactly in the manner he or she would have dOne in absence of the insurance:

(g) Principle of Causa Proxima: Principle of Causa Proxima (a Latin phrase), or in simple English words, the Principle of Proximate (i.e. Nearest) Cause, means when a loss is caused by mo than one causes, the proximate or the nearest cause should be taken into consideration to decide the liability of the insurer.

Example: If an individual suffers a loss in a fire accident, then this should already be a part of the contract in order for this person to claim the insurance amount.

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Question 38.
What are Public Deposits? Explain the merits and limitations of Public Deposits.
(a) The deposits that are raised by organizations directly from the public are known as public deposits.
(b) The procedure of obtaining deposits is simple and does not contain restrictive conditions as are generally there in a loan agreement.
(c) Cost of public deposits is generally lower than the cost of borrowings from banks and financial institutions.
(d) Public deposits do not usually create any charge on the assets of the company. The assets can be used as security for raising loans from other sources.
(e) As the depositors do not have voting rights, the control of the company iš not diluted.

(a) New companies generally find it difficult to raise funds through public deposits.
(b) It is an unreliable source of finance as the public may not respond when the company needs money.
(c) Collection of public deposits may prove difficult, particularly when the size of deposits required is large.

Question 39.
Explain the role of the Chambers of Commerce in promoting internal trade in the country.
(a) Transportation or interstate movement of goods: The Chambers of Commerce and Industry help in many activities concerning the interstate movement of goods which includes registration of vehicles, surface transport policies, construction of highways and roads.

(b) Marketing of agro products and related issues: The associations of agriculturists and other federations play an important role in the marketing of agro products. Streamlining of local subsidies and marketing policies of organizations selling agro products are some of the areas where the Chambers of Commerce and Industry can really intervene and interact with concerned agencies like farming cooperatives.

(c) Weights and measures and prevention of duplication brands: Laws relating to weights and Measures and protection of brands are necessary to protect the interest of the consumers as well as the traders. They need to be enforced strictly. The Chambers of Commerce and Industry interact with the government to formulate such laws and take action against those who violate rules and regulations.

(d) Promoting sound infrastructure: A sound infrastructure like road, port, electricity, railways, etc. plays a catalytic role in promoting trade. The Chambers of Commerce and Industry in collaboration with the government needs to take up heavy investment projects.

(e) Labour legislation: A simple and flexible labor legislation is hclptùl in running industries, maximizing production, and generating employment. The Chambers of Commerce and Industry and the government are constantly interacting on issues like labor laws, retrenchment, etc.

(f) Octroi and other local levies: Octroi and local taxes are the important sources of revenue of the local government. These are collected on the goods and from people entering the state or the municipal limits. The government and Chambers of Commerce should ensure that their imposition is not at the cost of smooth transportation and local trade.

(g) Harmonisation of sales tax structure and value-added tax: The Chambers of Commerce and Industry play an important role in interacting with the government to harmonize the sales tax structure in different states.

(h) Excise duty: Central excise is the chief source of the government revenue levied across states by the central government. The excise policy plays an important role in the pricing mechanism and hence the associations need to interact with the government to ensure streamlining of excise duties.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 5 with Answers

Question 40
Explain the steps to be followed in Export Procedure up to excise clearance.
(a) Receipt of inquiry and sending quotations: The prospective buyer of a product sends an inquiry to different exporters requesting them to send information regarding price, quality and terms, and conditions for export of goods.

(b) Receipt of order or indent: Ìn case the prospective buyer finds the export price and other terms and conditions acceptable, it places an order for the goods to be despatched. This order, also known as indent, contains a description of the goods ordered, prices to be paid, delivery terms, packing and marking details, and delivery instructions.

(c) Assessing the importer’s creditworthiness and securing a guarantee for payments: After receipt of the indent, the exporter makes the necessary inquiry about the creditworthiness of the importer. The purpose underlying the inquiry is to assess the risks of non-payment by the importer once the goods reach the import destination. To minimize such risks, most exporters demand a letter of credit from the importer.

(d) Obtaining export license: Having become assured about payments, the exporting firm initiates the steps relating to compliance with export regulations. Export of goods in India is subject to customs laws which demand that the export firm must have an export license before it proceeds with exports.

(e) Obtaining pre-shipment finance: Once a confirmed order and also a letter of credit have been received, the exporter approaches his banker for obtaining pre-shipment finance to undertake export production. Pre-shipment finance is the fInance that the exporter needs for procuring raw materials and other components. processing and packing of goods and transportation of goods to the port of shipment.

(f) Production or procurement of goods: Having obtained the pre-shipment finance from the bank, the exporter proceeds to get the goods ready as per the specifications of the importer.

(g) Pre-shipment inspection: The Government of India has initiated many steps to ensure that only good quality products are exported from the country. One such step is the compulsory inspection of certain products by a competent agency as designated by the government. The government has passed Export Quality Control and Inspectîon Act, 1963 for this purpose.

(h) Excise clearance: As per the central excise tariff act, excise duty is required to be paid on the materials used in the production of goods meant for export. So if the exporter desires to produce the goods meant for export by himself, he has to pay the excise duty on the material materials used in the production of goods for export and obtain export clearance from the concerned excise commissioner.

For obtaining export clearance from the concerned excise commissioner exporter has to follow the following steps:
1. The exporter has to apply, to the concernå Excise Commissioner in the region with an invoice because according to the Central Excise Tariff Act, excise duty is payable on the materials used in manufacturing goods. If the Excise Commissioner is sãtisfied, he may issue the excise clearance.

2. But in many cases, the government exempts payment of excise duty or later on refunds it if the goods so manufactured are meant for exports. This is done to provide an incentive to the exporters to export more and also to make the export products more competitive in the world markets.


V. Answer any two of the following questions: ( 2 × 5 =10 )

Question 41.
As the owner of a business unit, what risks you may face in running it?
The risk faced by ownër while running a business unit are:

  1. Market informaniion risk
  2. Consumer taste and preferences risk
  3. Government policy risk
  4. Capital risk
  5. Operational risk.

Question 42.
As a businessman having concern for environmental protection, suggest any five steps which can be taken by you for environmental protection.
Five measures to control environmental pollution are:
(a) Definite commitment by top management of the enterprise to create, maintain and develop work culture for environmental protection and pollution prevention.

(b) Complying with laws and regulations enacted by the government for the prevention of pollution.

(c) Participation in government programs relating to the management of hazardous substances, plantation of trees, and checking deforestation.

(d) Ensuring that commitment to environmental protection is shared throughout the enterprise by all divisions and employees.

(e) Arranging educational workshops and training materials to share technical information and experience with suppliers, dealers, and customers to get them actively involved in pollution control programs.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 5 with Answers

Question 43.
Give a list of any five institutions which support small businesses in India.
Five institutions that support small businesses in India are:
(a) National Bank for Agriculture and Rural Development (NABARD)
(b) National Small Industrial Corporation (NSIC)
(e) Small Industrial Development Bank of India (SIDBI)
(d) Rural and Women Entrepreneurship Development (RWED)
(e) District Industries Centres (DICs).