1st PUC Economics Previous Year Question Paper March 2020 (North)

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Karnataka 1st PUC Economics Previous Year Question Paper March 2020 (North)

Time: 3.15 Hours
Max Marks: 100

Instructions:

  1. Write the question numbers legibly in the margin.
  2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Alternative uses of resources give rise to the problem of
(a) Rights
(b) Price
(c) Choice
(d) Chance
Answer:
(c) Choice

Question 2.
Range is the
(a) Difference between the largest and the smallest values of a variable
(b) Average of the largest and smallest observation.
(c) Ratio of the largest and smallest values of a variable.
(d) None of the above
Answer:
(a) Difference between the largest and the smallest values of a variable

Question 3.
During British rule more than half of India’s foreign trade was restricted to
(a) Britain
(b) Iran
(c) China
(d) Srilanka
Answer:
(a) Britain

Question 4.
The act provides guaranteed wage employment to every poor household for a minimum of 100 days a year is called.
(a) PMRY
(b) SJSRY
(c) MGNREGA
(d) SGSY
Answer:
(c) MGNREGA

1st PUC Economics Previous Year Question Paper March 2020 (North)

Question 5.
Urban people are mainly engaged in the
(a) primary sector
(b) service sector
(c) mining
(d) agriculture
Answer:
(b) service sector

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
_________ of the table contains actual data.
Answer:
Body

Question 7.
Using current year quantities as weights is known as
Answer:
Paasche Price Index.

Question 8.
Taxes on incomes of individuals is called ______
Answer:
Direct tax

Question 9.
Infrastructure facilities can be classified into __________ types.
Answer:
Two

Question 10.
Forests are _________ resource.
Answer:
Natural.

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A

B

1. Pilot survey (a) India and the knowledge economy
2. Median (b) Institutional source
3. Subsidy (c) Pretesting of questionnaire
4. World Bank (d) The monetary assistance for production activities
5. NABARD (e)          Positional value

Answer:
1 – c
2 – e
3 – d
4 – a
5 – b

1st PUC Economics Previous Year Question Paper March 2020 (North)

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
What is mean deviation?
Answer:
Mean deviation is the arithmetic nican of the differences of the values from their average. The average used is either arithmetic mean or median.

Question 13.
Mention the last step in developing a project.
Answer:
The last step in developing a project is to draw meaningful conclusions after analyzing and interpreting the results.

Question 14.
Give the meaning of infant mortality rate.
Answer:
Infant mortality rate is the death of babies per thousand live births.

Question 15.
Expand ILO.
Answer:
International Labour Organisation.

1st PUC Economics Previous Year Question Paper March 2020 (North)

Question 16.
Name the campaign initiated in China with the aim of industrialisation.
Answer:
The Great Leap Forward campaign was initiated in ¡958 with the aim of industrialization.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Mention the two sources of data.
Answer:
Primary data and scconda data are the two sources of data.

Question 18.
Give the formula to find out mid-point.
Answer:
The formula to find out midpoint is as folIos:
Mid point = \(\frac{\text { Upper class limit }+\text { Lower class limit }}{2}\)

Question 19.
What kind of diagrams are more effective in presenting the following?
(a) Monthly rainfall in a year
(b) Composition of the population of Delhi by religion,
Answer:
(a) For the monthly rainfall in a year. simple bar graph can be used to represent in diagram.
(b) For the composition of population of Delhi by religion, component bar diagram or pie chart can be used to represent the data.

Question 20.
Calculate arithmetic mean from the following data.
Marks obtained by 10 students.
30, 62, 47, 25, 52, 39, 56, 66,12, 24
Answer:
1st PUC Economics Previous Year Question Paper March 2020 (North) 4

Question 21.
What is negative correlation? Give an example.
Answer:
The correlation is said to be negative in the variables move in opposite directions.

Example:

  • When the price of tomato increases, the demand for tomatoes decreases.
  • More is the time spent for studies, less arc the chances of failure,

1st PUC Economics Previous Year Question Paper March 2020 (North)

Question 22.
Mention the name of any four statistical tools.
Answer:
The most important statistical tools are the measures of central tendency, dispersion, correlation. bar diagrams. pie chart. histogram. etc.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
List out the important export goods of India before independence.
Answer:
The important export goods of India before independence were raw silk, cotton, wool, sugar. indigo, jute. etc.

Question 24.
List the factors that prevent the successful implementation of poverty alleviation programmes.
Answer:
The cm ment scholars, while assessing the poverty alleviations programmes, state these major areas of concern that prevent their successful implementation.

They are as follows:
(a) The benefits from direct poverty alleviation programmes have been appropriated by the non-poor
(b) The amount of resources allocated for poverty alleviation programmes is not sufficient
(c) These properties depend mainly on government and bank officials for their implementation. These are ill-motivated, inadequately trained, corruption prone and vulnerable
(d) The resources are inefficiently used and wasted
(e) There is also non-participation of local level institutions in programme implementation.

Question 25.
What are the two major sources of human capital in a country?
Answer:
Education and Health are two main sources of human capital. Education mises the standard and quality of living of people. It increases the production capacity and productivity of the workforce b enhancing their skills. Health indirectly helps in the economic development by supplying active energetic and healthy workforce for better production.

Question 26.
Give two examples of alternative market.
Answer:
The examples for the alternative market are:

  • Rvthara Santhe in Karnataka.
  • Rvthu Bazaar in Andhra Pradesh (Vegetable and Fruit markets)
  • Apni Mandi in Punjab. Harvana and Rajasthan.

1st PUC Economics Previous Year Question Paper March 2020 (North)

Question 27.
Name any four kinds of unemployment,
Answer:
The kinds of unemployment are as follows:

  • Open unemployment
  • Disguised unemployment
  • Seasonal unemployment
  • Underemployment
  • Technical unemployment
  • Frictional unemployment.

Question 28.
Which are the components of Indian system of medicine?
Answer:
The components of Indian systems of medicine (AYUSH) are as follos:

  • Avurveda.
  • Yoga
  • Unani
  • Siddha
  • Naturopath
  • Homeopathy.

Question 29.
Mention any four functions of the environment.
Answer:
The major functions of environment are as follows:
(a) The environment supplies both renewable and non-renewable resources. Renewable resources are those resources that can be used again and again. There will be a continuous supply of resources. Example. water. forest, land, etc.

Non-renewable resources arc those which get exhausted with extraction and use. Example, mineral resources like petrol, coal, iron ore, etc.

(b) The Environment assimilates waste. That means that environment absorbs the solid and liquid wastes created by humans and other living beings.

(c) The environment sustains the life on earth by providing both genetic and bio-diversities.

(d) Environment also provides aesthetic services like beautiful scenery of forest land, water falls, mountains like the Himalaya ranges, lagoons, glaciers, valleys, etc.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
Briefly explain how statistics helps to study economics.
Answer:
Statistics play s a very important role in the field of economics It helps in the study of economics in many ways:
(a) It helps to understand economic problems: By using various statistical tools, effort is being made to find the causes behind the economic problems with the help of qualitative and the quantitative facts. Once the causes of a problem are identified. it is easier to formulate certain policies to tackle them.

(b) It enables an economist to present economic facts in a precise and definite form: Statistics help the economists to present economic facts with accuracy. It also helps in proper comprehension of what is stated in the subject matter. When economic facts are expressed in statistical terms, they become exact. Exact facts are more convincing than vague statements. For instance. saving 350 people have died in Kashmir unrest since 2000, is more accurate than saving that a lot of people have died in the unrest.

(e) Helps in condensing mass data into a few numerical measures: Statistics condenses the mass data into a few numerical measures like mean, variance, correlation, etc. These numerical measures help to summarise data. For example, it would be impossible to remember the income of all the people of a country, But we can remember average income i.e. per capita income.

(d) It is used to find relationships between different economic factors: An economist may be interested in finding out what happens to the demand for a commodity when its price changes or what will be impact on inflation when the government has more budget deficits. Such situations can be dealt, if any relationship exists bctwecn the various economic factors. Here, the nature of relationship can be studied with the help of statistical tools.

(e) It helps in formulation of plans and policies: Sometimes, formulating plans and policies require the knowledge of future trends. For instance, an economic planner has to decide in 2010 how much the economy should produce in 2016-17. In otherwords, one must know what could be the expected level of consumption in 2016-17, So. the statistical tools to predict consumption in 20 16-17 could be based on the data of consumption of past years obtained by surveys.

1st PUC Economics Previous Year Question Paper March 2020 (North)

Question 31.
Write briefly about the Census and NSSO.
Answer:
Census : The census of India provides the most complete and continuous demographic record of population. The census is being regularly conducted every ten years since 1881. The first census after independence was conducted in 1951. It is also called as the method of complete Enumeration. The essential feature of this method is that it covers every individual unit in the entire population. In this method a house-to-house enquiry is carried out, covering all households in India. Demographic data on birth and death rates, literacy, employment, life expectancy, size and composition of population etc. are collected and published by the Register General of India.

The census officials collect information on various aspects of population such as the size, density, sex ratio, literacy, migration, rural urban distribution, etc. Census data is interpreted and analysed to understand many economic and social issues in India.

NSSO : There are some agencies both at the national and state level to collect, process and tabulate the statistical data. One of such agencies is NSSO i.e., National Sample Survey Organisation.

The NSSO was established by the Government of India to conduct nation-wide surveys on socio-economic issues. The NSSO does continuous surveys in successive rounds. The data collected by NSSO are released through reports and its quarterly journal Sarvekshana. NSSO provides periodic estimates of literacy, school enrolment, utilization of educational services, employment unemployment, manufacturing and service sector enterprises, morbidity, child care, utilization of the public distribution system, etc.

The NSSO also collects details of industrial activities and retail prices for various goods. They are used by Government of India for planning purposes.

Question 32.
Write a note on classification of data.
Answer:
The raw data is classified in various ways depending on the purpose. Generally data can be classified as follows:
(a) Chronological classification: When the data is grouped according to time, it is called as chronological classification. In SLICh a classification, data are classified either in ascending or in descending order ith reference to time such as years. quarters. months weeks days. etc.

(b) Spatial classification: 1f the data arc classified with reference to geographical locations such as countries. states. cities, districts. etc.. it is called spatial classification.

(c) Qualitative classification: When the data arc classified on the basis of certain attributes or qualities like literacy, religion, gender. marital status etc.. then it is called qualitative classification. These attributes can be classified on the basis of either the presence or the absence of a quantitative characteristic.

(d) Quantitative classification: If the classification of data is done on the basis of certain characteristics like height. weight. age. income, marks of students etc., it is called as quantitative classification,

1st PUC Economics Previous Year Question Paper March 2020 (North)

Question 33.
The yield of rice per acre for 10 districts of a state, are as under:
1st PUC Economics Previous Year Question Paper March 2020 (North) 1
Calculate mean deviation from median.
Answer:
Values in ascending order
X: 12 12 12 15 18 18 22 23 29 34

Median = Size of \(\left(\frac{N+1}{2}\right)^{t h}\) item
Median = Size of \(\left(\frac{10+1}{2}\right)^{t h}\) item
= Size of \(\left(\frac{11}{2}\right)^{\text {th }}\) item
= 5.5th item

To get median. we need to add 5th and 6th items and divide it by 2.

Question 34.
Draw scatter diagram and interpret.
1st PUC Economics Previous Year Question Paper March 2020 (North) 2
Answer:
1st PUC Economics Previous Year Question Paper March 2020 (North) 5
Interpretation: There is a perfect positive correlation between X and Y.

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
Indicate the volume and direction of trade at the time of independence.
Answer:
The volume of foreign trade includes the quantities of goods and scrvices which were being exported and imported The direction of trade refers to the countries which were involved during British rule. The volume and direction of India’s foreign trade at the time of independence is as follows:

During the regime of colonial government, India became an exporter of primary goods like raw silk, cotton. wool, sugar, raw jute etc., and an importer of finished consumer goods like cotton, silk and woolen clothes and capital goods like light machineries produced by the factories at Britain.

Britain had maintained monopoly over India’s exports and imports. As a result, more than half of India’s foreign trade was restricted to Britain. while the rest was allowed with a few other countries like China. Srilanka, Iran, etc. The opening of the Suez Canal further intensified British control over India ‘s foreign trade.

Question 36.
Write a short note on Green revolution.
Answer:
Green revolution refers to the spectacular increase in the agricultural production during 1960s. There was a large scale production of food grains resulting from the Lise of high ieldrng variety seeds especiall wheat and rice. The USC of these seeds required the use of fertilizer and pesticides in correct quantities as well as regular supply of water. The application of these inputs in correct proportions is very vital.

The farmers to could benefit from HYV seeds required reliable irrigation facilities as well as the financìal support to purchase chemical fertilizers and pesticides. As a result, in the first phase of the green revolution during the 1960s and 1970s. the use of HYV seeds as restricted to the more affluent states such as Pun jab. Andhra Pradesh and Taniil Nadu, Further, the use of high yielding variety seeds primarily benefitted the wheat-growing regions only, During the mid-1970s to mid-1980s. the llYVtechnologv spread to a larger number of states and benefited more variety of crops. The spread of green revolution technology enabled India to achieve self-sufficiency in food grains: vc no longer had to be at the mercy of America. or any other country for meeting our nation’s food requirements.

Question 37.
Briefly explain the background of economic reforms in India.
Answer:
There was a financial crisis that persisted since 1980. We know that to introduce various policies, the government has to generate funds from various sources like taxation, running public sector enterprises etc. When the expenditure is more than the income, the government takes loans to balance the deficit from banks and also from people within the country and from international banks,

The various development policies require huge finance. But there was a scarcity of funds. Even though the revenues were very low, the government had to overshoot its revenue to meet the challenges like unemployment, poverty and population explosion. The continued spending on development programmes of the government did not generate additional revenue. At the same time, the government could not generate funds internally. When the government wàs spending a large share of its income on areas which do not provide immediate returns, there was a need to use the rest of its revenue in a highly efficient manner, The income from public sector undertakings was also not very high to meet the growing expenditure.

Further, the foreign exchange. borrowed from other countries and international banks was spent on meeting consumption needs. No sincere efforts were made to reduce expenditure and to increase our exports.

During late 1980’s government expenditure exceeded its income. Prices of many essential goods increased. Imports grew at a very large extent. Foreign exchange reserves declined considerably and the same fall short to finance our imports for more than two weeks. There was shortage of funds even to pay interest to international lenders and at the same time no country or international bank was ready to lend any more to India.

At this situation. India approached the International Bank for Reconstruction and Development and International Monetary Fund and received seven billion dollars as loan to manage the crisis. To avail loans, these international banks expected India to liberalise and open up its economy by removing restrictions on the priate sector, reduce the role of government in man areas and remove trade restrictions between India and other countries.

India had to agree to these conditions of IBRD and IMF and announced the new economic policy which included liberalization, privatization and globalization.

Question 38.
Explain the drawbacks of agricultural market in India.
Answer:
Agricultural marketing is a process that involves the assembling, storage, processing, transportation. packaging, grading and dístnbution of different agricultural commodities across the country. The major drawbacks of agriculture marketing in India are as follows:

  • Long chain of middlemen taking away the profit of farmers
  • No proper storage facilities to protect the agricultural products
  • Faulty methods of weighing/encasing agricultural crops
  • Manipulation of accounts
  • Farmers are forced to sell their products at low prices due to lack of information.

1st PUC Economics Previous Year Question Paper March 2020 (North)

Question 39.
Write a note on private health infrastructure in India.
Answer:
Nowadavs private sector has been playing a dominant role in medical education and training. medical technology and diagnostics. manufacture and sale of phannaceuticals. hospital construction and the provision of medical services.

  • More than 70% of the hospitals in India are run by the private sector
  • The private sector controls nearly two-fifth of beds available in hospitals
  • Nearly 60% of dispensaries are run by the private sector
  • The private sector provides healthcare for 80% of outpatients and 46% of in-patients
  • Due to liberalization policy of Government of India. many non-resident Indians and industnal and pharmaceutical companies have set up state-of-art super-specialty hospitals to attract India’s rich and medical tourists.

Question 40.
What are the various indicators of human development?
Answer:
The various indicators of human development are as follows:
(a) Human development index: It consists of standard of living index, life expectancy at birth and educational attainment. Ifthc HDI is high it is good indicator of human development.

(b) Life expectancy at birth: It is the average number of years a person is expected to live. In other words, it is the longevity of life A high value of life expectancy better indicates a quality human development.

(c) Adult literacy rate: It is the average number of persons who have reading and writing skills with basic local knowledge. It is expressed in percentags, The high literacy rate shows high human development.

(d) GDP per capita: The gross domestic product per head is also one of the indicators ofhurnan development. The high value of GDP per capita indicates better human development.

(e) Infant mortality rate: It means the death of babies per thousand live births. If the IMR is high it indicter’s low human development.

(f) Maternal mortality rate: It shows the death of mothers per I lakh live births. If MMR is low, it indicates a better human development.

(g) Population using improved sanitation: ¡f the percentage of population using improved sanitation is more, it is a good indicator of human development.

(h) Population with sustainable access to improved water sources: 1f the percentage of population using sustainable access to improved water source is high, it is a good indicator of human development.

(i) People living below poverty line: ¡f less people are living belo poertv line, then it is a good indicator of human development.

(j) Percentage of children undernounshed: If the number of undernourished children is diminishing, then it is a good indicator of human development.

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
Construct Ogive by using the following data.

Marks (X)

Number of students (f)

0-20 6
20-40 5
40-60 33
60-80 14
80-100 6
Total 64

Answer:
Ogie is also called cumulative frequency curve. As there arc two types of cumulative frequencies. for example less than’ type and morc than type. accordingly thcrc are two ogives for any grouped frequency distribution data. Here in place of simple frequencies as in the case of frequency polygon, cumulative frequencies are plotted along Y axis against class limits of the frequency distribution. For less than ogives the cumulative frequencies arc plotted against the respective upper limits of the class intervals whereas for more than ogives the cumulative frequencies arc plotted against the respective lower limits of the class interval.

An interesting characteristic of the two ogives together is that their intersection point gives tIc median of the frequency distribution. The following graph represents the ogives. As the shapi.s of the two ogives suggest. less than’ ogive is never decreasing and ‘more than’ ogive is never increasing.
1st PUC Economics Previous Year Question Paper March 2020 (North) 6
1st PUC Economics Previous Year Question Paper March 2020 (North) 7

Question 42.
Find the median of the following data.
1st PUC Economics Previous Year Question Paper March 2020 (North) 3
Answer:
1st PUC Economics Previous Year Question Paper March 2020 (North) 8
Median = Size of \(\left(\frac{N}{2}\right)^{t h}\) item = Size of \(\left(\frac{50}{2}\right)^{\text {th }}\) item
= Size of 25th item ie., 50 – 60

To calculate the exact median the following formula is used:
1st PUC Economics Previous Year Question Paper March 2020 (North) 9

Question 43.
Calculate the standard deviation for the following distribution.

Classes

Frequencies

0-20 9
20-40 12
40-60 20
60-80 14
80-100 3
50

Answer:
1st PUC Economics Previous Year Question Paper March 2020 (North) 10
1st PUC Economics Previous Year Question Paper March 2020 (North) 11

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Briefly explain the important area of liberalisation.
Answer:
Liberalisation was one of the reforms of New Economic Policy of 1991. It was introduced to put an end to the restrictions and open up various sectors of the economy. The following are the important areas of liberalization:
(a) Deregulation of industrial sector: The liberalization policy removed many restrictions enforced on industrial sector. Industrial licensing was abolished for almost all but product categories like alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals. The only industries which are not reserved for the public sector are defence equipments, atomic energy generation and railway transport. Many goods produced by the small scale industries have now been dereserved.

(b) Financial sector reforms: The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange market.

The financial sector in India is regulated by the Reserv e Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates, nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from regulator to facilitator of financial sector. That means, the financial sector may be allow ed to take decisions on many matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. Foreign investment limit in banks was raised to around 50%. The banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers, mutual funds and pension funds are now allowed to invest in Indian financial markets.

(c) Tax reforms: These are the reforms which are concerned with government’s taxation and public expenditure policies which are collectively known as its fiscal policy. There are two types of taxes, direct and indirect.

Since 1991, there has been a continuous reduction in the taxes on individual incomes as it was felt that high rates of income tax were an important reason for tax evasion. It is now widely accepted that moderate rates of income tax encourage savings and voluntary disclosure of income

The rate of corporation tax (tax on income of companies) which was very high earlier has been gradually reduced. A new tax called Goods and Services Tax (GST) has been introduced from 1.7.2017 to bring uniformity in indirect taxes.

In order to encourage better compliance on the part of tax payers, many procedures have been simplified and the rates also substantially lowered.

(d) Foreign exchange reforms: During 1991, the Government took an immediate measure to resolve the balance of payments crisis, the rupee was devalued against foreign currencies. This led to an increase in the inflow of foreign exchange. It also set the tone to free the determination of rupee value in the foreign exchange market from government control. At present, the market forces i.e., demand and supply, determine the exchange rates.

(e) Trade and investment policy reforms: A new trade and investment policy under liberalization strategy was made to increase international competitiveness of industrial production and a foreign investments and technology into the economy. The aim was also to promote the efficiency of the local industries and the adoption of modem technologies.

To protect Indian industries, the government was following quantitative restrictions on imports which encouraged tight control over imports. At the same time, tariffs were very high. These policies reduced efficiency and competitiveness which led to a slower growth of manufacturing sector.

The main objectives of Trade and Investment Policy were:

  • To remove quantitative restrictions on imports
  • To reduce quantitative restrictions in exports
  • Reducing tariff rates
  • Removal of licensing system.

Import licensing was abolished except in case of hazardous and environmentally sensitive industries. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were also fully removed.

Export duties have been removed to increase the competitive position of Indian goods in the international markets.
A process of disinvestment was also initiated by selling of part of equity shares of public sector enterprises to the public.

1st PUC Economics Previous Year Question Paper March 2020 (North)

Question 45.
Discuss the following as a source of human capital formation.
1. Health infrastructure
2. Expenditure on migration.
Answer:
(a) Health infrastructure: The various forms of health expenditures are as follows:

  • Preventive medicine vaccinations to prevent deadly diseases
  • Curative medicine obtaining medical treatment during illness
  • Social medicine spread of awareness about keeping good health and its importance.
  • Provision of clean drinking water and good sanitation.

Healths individuals are a food source of human capital as they directly contribute for regular and higher productivity of labor. A sick laborer without access to medical facilities has to remain absent from work. This leads to loss of productivity. Hence, expenditure on health is an important source of human capital formation.

(b) Expenditure on migration: People migrate from their native places in search ofjobs which may bring higher salaries, Unemployment is the only reason for rural-urban migration in India. Technically qualified persons like engineers and doctors migrate to other countries to earn better income Though there is a high cost of transport, high cost of living and other factors, the enhanced income will motivate people to migrate. Hence. expenditure on migration is also a source of human capital formation.

Question 46.
What role does the government play in generation of employment opportunities in India.
Answer:
Government is making efforts to generate employment opportunities to unemployed persons through two categories i.e., direct and indirect.

In the first category, government is directly providing job opportunities by employing people in various departments for administrative purposes, industries, hotels, transport corporations etc.

In the second category, the Government had introduced a New Economic Policy in 1991 in the form of LPG i.e., Liberalization, Privatisation and Globalisation which has provided ampl ; opportunities to private entrepreneurs to start their own production centre which are creating employment opportunities to millions of people in India.

Further, when output of goods and services from government enterprises increase, then private enterprises which receive raw materials from government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. For instance, when a government owned steel company increases its output, it will result in direct increase in employment in that government company, simultaneously, private companies, which purchase steel from it will also increase their output and thus employment. This is indirect generation of employment opportunities by the government initiatives in the economy.

There are many programmes that the successive governments have implemented to alleviate poverty through employment generation. They are known as Employment Generation Programmes. They are as follows:

Self-employment programmes: The major Self Employment Programmes are:

  • Swarnajayanti Gram Swarozgar Yojana (SGSY): This program aims at providing financial assistance to self help groups which then decide whom the loan is to be given to for self-employment activities among the members.
  • Swarnajayanthi Shahari Rozgar Yojana (SJSRY): It aims at creating employment opportunities, for both self-employment and wage employment opportunities in urban areas. Under self-employment programmes, financial assistance is given to families or individuals. Now, programs are encouraged to form self help groups.
  • Pradhana Manthri Rozgar Yojana (PMRY): The educated unemployed from low-income families in rural and urban areas can get financial help to set up some enterprise that generates employment under this scheme.

Wage employment programmes: The major national programmes to generate w’age employment are as follows:

  • National Food for Work Programme (NFWP)
  • Sampoorna Grameena Rozgar Yojana (SGRY)
  • Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP): It provides guaranteed wage employment to every household whose one adult volunteer will get unskilled labour for a minimum of 100 days in a year.

All these programmes aim at providing not only employment but also services in areas such as primary health, primary education, rural drinking water, nutrition, assistance for people to buy income and employment generating assets, development of community assets by generating wage employment, assistance for constructing houses, laying of rural roads, development of wastelands.

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
Write a note on SENSEX.
Answer:
Sensex is the short form for the of Bomba’ Stock Exchange Sensiti’.e Index with 1978-79 as a base. The value of the sensex is with reference to this period. It is the benchmark index for the

Indian stock market, It consists of 30 stocks that represent LS sectors of the economy and the companies listed are leaders in their respective industries. If the Sensex rises, it indicates that the market is doing cll and investors expect better earnings from companies. It also indicates growing confidence of investors in the basic health of the economy.

Further, the sensitive index is a market capitalization of weighted index of sample of large. well established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collective consciousness of investors. This index is ide1v used to measure the performance of the Indian stock market. It is the pulse of the Indian capital market.

Question 48.
Write the chart of poverty line.
Answer:
1st PUC Economics Previous Year Question Paper March 2020 (North) 12
Chronic poor: These are the persons who always remain poor for a long period of time. For example. casual workers, agricultural laborers, rag pickers. beggars. etc. They include always poor and usually poor.

Transient poor: The transient poor are those people who are rich most of the time but may sometimes have a patch of bad luck. They also include churning poor who regularly move in and out of the poverty line example. small farmers and seasonal workers and occasionally poor who are rich most of the time.

Non-poor: These are the groups of people who live above the poverty line and they are never poor.

1st PUC Economics Previous Year Question Paper March 2020 (North)

Question 49.
Prepare a list of causes of land degradation in India.
Answer:
Land in India suffers from varying degrees and types of degradation. These are increasing main due to the factors mentioned below:
(a) Deforestation, ie. reckless cutting down of trees resulting in loss of vegetation.
(b) Indiscriminate and over exploitation of forest products such as fuel wood and overgrazing.
(c) Conversion of forest lands into agricultural lands.
(d) Forest fire and faulty methods of cultivation.
(e) Excessive application of pesticides and insecticides.
(f) Disproportionate and excessive use of chemical fertilizers in Indian agriculture.
(g) The irrigation systems in india are not properly planned and managed.
(h) Overexploitation of ground water for various competing utilities like human settlement, industrialization, etc. .
(i) No proper introduction of crop rotation techniques and organic farming.
(j) Illiteracy and ignorance of rural population in respect of causes and effects of land degradation.

Land is indispensable for human settlement. If proper care is not taken for the conservation of land and water, there shall be severe scarcity of water and natural resources in future which may lead to conflict among the countries.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Students can Download 1st PUC Economics Previous Year Question Paper March 2020 (South), Karnataka 1st PUC Economics Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Previous Year Question Paper March 2020 (South)

Time: 3.15 Hours
Max Marks: 100

Instructions:

  1. Write the question numbers legibly in the margin.
  2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Alternative uses of resources give rise in the problem of
(a) Rights
(b) Price
(c) Choice
(d) Chance
Answer:
(c) Choice

Question 2.
What is the graphical measure available to measure dispersion.
(a) Lorenz curve
(b) Marshal curve
(c) Production curve
(d) Non of the above
Answer:
(a) Lorenz curve

Question 3.
In India census is carried out once in
(a) 5 years
(b) 10 years
(c) 1 year
(d) 2 years

(b) 10 years

Question 4.
It is an agricultural allied activity
(a) Poultry
(b) Cottage industry
(c) Small industry
(d) Tourism
Answer:
(a) Poultry

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 5.
Urban people are mainly engaged in the
(a) Primary sector
(b) Service sector
(c) Mining
(d) Agriculture
Answer:
(b) Service sector

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Frequency distribution of discrete frequency is called ________________
Answer:
Frequency array

Question 7.
Arithmetic line graph is also called __________
Answer:
Time Series Graph

Question 8.
There are ___________ Quartiles in a series.
Answer:
3

Question 9.
Infrastructure facilities can be classified into types.
Answer:
Two

Question 10.
The great leap forward campaign was initiated in the year
Answer:
1958

1st PUC Economics Previous Year Question Paper March 2020 (South)

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A B
1. Personal Interview 1. The monetary’ assistance given by government for production activities
2. W.P.I 2. Sustainable development
3. Subsidies 3. More expensive
4. Educational achievement 4. Whole sale price index
5. Bio pest control 5. Literacy rate

Answer:
1 -3;
2 -4;
3-1;
4-5;
5-2.

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
Mention the last step in developing project.
Answer:
The last step in developing a project is to draw meaningful conclusions after analyzing and interpreting the results.

Question 13.
ILO – Expand.
Answer:
International Labour Organisation.

Question 14.
What is the liberalization?
Answer:
Liberalization refers to the removal restrictions and opening up various sectors of the economy by giving freedom to invest.

Question 15.
Give the meaning of poverty.
Answer:
Povert is a state of living where people are unable to get the basic necessities of life.

Question 16.
Give the meaning of infant mortality rate?
Answer:
Infant mortality rate is the death of babies per thousand live births.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Mention any two modes of collecting data.
Answer:
The two modes of collecting data are personal interview and mailing questionnaires.

Question 18.
How can you obtain a frequency curve?
Answer:
The frequency curve is obtained by drawing a smooth freehand curve passing through the points of the frequency polygon as closely as possible. It may not necessarily pass through all the points of the frequency polygon but it passes through them as closely as possible.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 19.
Calculate the arithmetic mean from the following data.
Marks obtained by 10 students
1st PUC Economics Previous Year Question Paper March 2020 (South) 1
Answer:
1st PUC Economics Previous Year Question Paper March 2020 (South) 5

Question 20.
Mention the types of Correlation.
Answer:
There are two types of correlation negative correlation and positive correlation. Again they are classified perfect positive and perfect negative correlations.

Question 21.
Mention the types of variable.
Answer:
There are two types of variables namely. Continuous variable and discrete variable.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 22.
Mention the name of any four statistical tools
Answer:
The most important statistical tools arc the measures of central tendency, dispersion, correlation. bar diagrams, pie chart, histogram. etc.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
What were the infrastructure facilities developed during colonial rule?
Answer:
The main infrastructure facilities developed during colonial rule were railways. ports. water transport. posts and telegraphs. However, the real motive behind this development was not to provide basic amenities to the people but to subserve various colonial interests.

Question 24.
What do you mean by carrying capacity of environment?
Answer:
Carrying capacity implies that the resource extraction is not above the rate of regeneration of the resource and the wastes generated are within the assimilating capacity of the environment.

Question 25.
Who are the Urban poor? Give example.
Answer:
Urban poor are those who live in cities and towns without basic needs. Example: push cart. vendors. Street cobblers. women who string flowers, rag pickers. vendors and beggars.

Question 26.
What are the various forms of health expenditure?
Answer:
The various forms of health expenditures as follows:

  • Preventive medicine (vaccination)
  • Curative medicine (medical intervention during illness)
  • Social medicine (spread of health awareness)
  • Provision of clean drinking water and good sanitation.

Question 27.
Mention the two benefits of organic farming.
Answer:
The main benefits of organic farming arc as follows:

  • It offers a means to substitute costlier agricultural inputs (chemical fertilizers, pesticides) with cheaper ones
  • it generates income through exports
  • It contributes to ecological balance
  • Provides healthy and chemical-free food.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 28.
Name the three sectors of the economy.
Answer:
The three sectors of the economy are as follows:

  • Primary sector: It includes agriculture. mining, fishing, forestry, etc.
  • Secondary sector: It includes all manufacturing industries.
  • Service sector: It includes, transport. communication, banking. insurance, health. education. warehousing. etc.

Question 29.
Which are the economic infrastructures?
Answer:
The economic infrastructural facilities arc those which directly contribute towards economic development The main economic infrastructures are energy, transportation, communication. banking. insurance, warehouse. etc.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
Briefly explain how statistics helps to study economics.
Answer:
Statistics plays a very important role in the field ofeconomics It helps in the study of economics in many ways:
(a) It helps to understand economiC problems: B using various statistical tools, effort is being made to find the causes behind the economic problems with the help of qualitative and the quantitative facts. Once the causes of a problem arc identified. it is easier to formulate certain policies to tackle them.

(b) It enables an economist to present economic facts in a precise and definite form: Statistics help the economists to present economic facts with accuracy. It also helps in proper comprehension of what is stated in the subject matter. When economic facts are expressed in statistical terms. they become exact. Exact facts are more convincing than vague statements. For instance. saving 350 people have died in Kashmir unrest since 2000, is more accurate than saving that a lot of people have died in the unrest.

(e) Helps in condensing mass data into a few numerical measures: Statistics condenses the mass data into a few numerical measures like mean, variance, correlation, etc. These numerical measures help to summarise data. For example. it would be impossible to remember the income of all the people ofa country. But we can remember average income i.e., per capita income.

(d) It is used to find relationships between different economic factors: An economist may be interested in finding out what happens to the demand for a commodity when its price changes or what will be impact on inflation, when the government has more budget deficits. Such situations can be dealt, if any relationship exists between the various economic factors. Here, the nature of relationship can be studied with the help of statistical tools.

(e) It helps in formulation of plans and policies: Sometimes, formulating plans and policies require the knowledge of future trends. For instance, an economic planner has to decide in 2010 how much the economy should produce in 2016-17. In otherwords, one must know what could be the expected level of consumption in 2016-17. So. the statistical tools to predict consumption in 20 16-17 could be based on the data of consumption of past years obtained by surveys.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 31.
Briefly explain sampling errors.
Answer:
Sampling error refers to the differences between the sample estimate and the actual value of a characteristic of the population. Ills the error that occurs when you make an observation from the samples taken from the population.

Thus, the difference between the actual value of a parameter of the population and its estimate is the sampling error. It is possible to reduce the magnitude of sampling error by taking a larger sample.

For example. suppose the height of 5 students (in inches) are 50. 55. 60. 65. 70. the average height will be calculated by adding all these observations and dividing the sum by 5 then get 60 inches. If we select a sample of two students with height of 50 and 60 inches. then average height of sample will be 50 + 60 divided by 2. we get 55 inches. Here the sampling error of the estimate will be 60 (true value) minus 55 (estimate) 5.

Question 32.
Find the standard deviation for the following data.
1st PUC Economics Previous Year Question Paper March 2020 (South) 2
Answer:
1st PUC Economics Previous Year Question Paper March 2020 (South) 6
1st PUC Economics Previous Year Question Paper March 2020 (South) 7

Question 33.
Draw scatter diagram
1st PUC Economics Previous Year Question Paper March 2020 (South) 3
1st PUC Economics Previous Year Question Paper March 2020 (South) 8
Intcrprctation: There is a perfect positive correlation between X and Y.
(For Blind students)

Mention the properties of correlation.
Answer:
The following are the major properties of correlation coefficient:

  • Correlation ‘r’ has no unit. it is a pure number. It meaiis units of measurement are not part of r.
  • A negative value of r indicates an inverse relation. A change in one variable is associated with change in the other variable in the opposite direction. For instance, when price of tomato increases, its demand decreases.
  • If ‘r’ is positive the two variables move in the same direction. When the price of coffee rises, a substitute of tea. the demand for tea increases.
  • The value of the correlation coefficient lies between minus one and plus one. (-1 ≤ r ≤ 1).
  • If r = O, the two variables are uncorrelated. There is no linear relation between them.
  • However, other types of relations may be there.
  • If r =1 or r = —1. the correlation is perfect. The relation between them is exact,
  • A low value of r indicates a weak linear relation. Its value is said to be low when it is close to zero.
  • The magnitude of r is unaffected by the change of origin and change of scale.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 34.
Differentiate between Continuous and discrete variables.
Answer:

Continuous Variable

Discrete Variable

It can take any numerical value. It can take only certain values.
It may take integral values, fractional values and values that are not exact fractions. Its value changes only by finite ‘jumps’. It ‘jumps’ from one value to another, but does not take any intermediate value.
For example, the height of a student, as he grows say from 100 to 150 cm. would take all the values in between 100 and 150. For example, a variable like the ‘number of girls in a class’, for different classes, would assume values that are only whole numbers. It cannot take any fractional value like 0.5 because ‘half of a student’ is absurd.
The variable is capable of manifesting in every conceivable value and its values can also be broken down into infinite gradations. It takes a value change from 100 to 101. 102 etc, but fractions are not taken it i.e., there cannot be 100.1, 100.5 etc.
Other examples of a continuous variable are weight, time, distance, etc. Other examples for a discrete variable are population, number of cars, buses and number appearing on a dice.

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
The traditional handicraft industries were ruined under British Rule. Justify this statement.
Answer:
Yes. the traditional handicrafts industries were ruined under British rule. The decline of the indigenous handicraft industries created not only massive unemployment in India but also a new demand in the Indian consumer market, which was now deprived of the supply of locally made goods.

The British imposed heavy duties on Indian handicrafts, so that the became more expensive than British woolen and silk manufacturers. Thc followed a policy of dut free export of raw materials and import of finished goods. Apart from these, Indian handicrafts had to face competition from machine made goods from Britain.

India could not develop a sound industrial base under the colonial rule. Even as the country ‘s world famous handicraft industries declined, no corresponding modem industrial base was allowed to come tip to take pride of place so long enjoyed by the Indians. The intention of British was to reduce India to the status of a mere exporter of important raw materials for the upcoming modem industries in Britain and to turn India into a market for their finished products of those industries, so that their continued expansion could be ensured to the maximum advantage of their home country.

Question 36.
Explain any two of the objectives of five year planning.
Answer:
The main goals of the five year plans are Growth, modernization, self-reliance and equity. They can be illustrated as follows:
(a) Growth: It refers to the increase in the gross domestic product. It also implies that the increase in the country’s capacity to produce the output of goods and services within the country, It includes larger stock of productive capital or a larger size of supporting services like transport and banking or an increase in the efficiency of productive capital land services.

A good indicator of economic growth, in the language of economics, is a steady increase in the gross domestic product (GDP). The GDP is the market value of all the goods and services produced in the country during a year. The GDP of a country is derived from the different sectors of the economy, namely agricultural sector, the industrial sector and the service sector.

(b) Modernization: Adoption of new technology is called as modernization. To increase the production of goods and services producers have to adopt new technologies. For example, a farmer can increase the output on his farm by using new seed varieties instead of using the old ones. Similarly, a factory can increase output by using a new types of machineries.

Modernisation does not refer only to the use of new technology but also to changes in social outlook such as the recognition that women should have the same rights as men. In a traditional society, women are supposed to remain at home while men work.

(c) Self-reliance: The first seven five year plans gave importance to self-reliance Self-reliance refers to avoiding imports of those goods which could be produced in India itself. This policy was considered a necessity in order to reduce our dependence on foreign countries, especially for food. It is a well-known fact that, people who were recently freed from foreign domination should give importance to self-reliance.

(d) Equity: Growth with equity is one of the objectives of planning. A country can have high economic growth, the most modern technology developed within the country itself but still have most of its people living in poverty. it is important to ensure that the benefits of economic prosperity reach the poorer sections as well instead of being enjoyed only by the rich. So. in addition to growth. modernization and self-reliance, equity is also important. Every Indian should be able to meet his or her basic needs such as food, a decent house, education and health care and so inequality in the distribution of wealth should be reduced.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 37.
Briefly explain the financial sector reforms.
Answer:
The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange market.

The financial sector in India is regulated by the Reserve Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates, nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from regulator to facilitator of financial sector. That means, the financial sector may be allowed to take decisions on many matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. Foreign investment limit in banks was raised to around 50%. The banks which fulfil certain conditions have been given freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers. mutual funds and pension funds arc now allowed to invest in Indian financial markets.

Question 38.
Explain the employment generator programming of poverty alleviation in India.
Answer:
The income and employment generation approach was started during the third five-year plan. It is based on specific poverty alleviation and employment generation aspects.
(a) Self-employment programmes: The major self-employment programmes are:
Swarnajayanti Grani Swarozgar Yojana (SGSY): This programme aims at providing financial assistance to self-help groups which then decide whom the loan is to be given to for self-employment activities among the members.

  • Swarnajayanthi Shahari Rozgar Yojana (SJSRY): ¡t aims at creating employment opportunities for both self-employment and wage employment opportunities in urban areas. Under self-employment programmes. financial assistance was given to families or individuals, Now, programmes are encouraged to form self help groups.
  • Pradhana Manthri Rozgar Yojana (PNIRY): The educated unemployed from Low-income families in rural and urban areas can get financial help to set up any kind of enterprise that generates employment, under this scheme.

(b) Wage employment programmes: The major national programmes to generate wage employment arc as follows:

  • National Food for Work Programme (NFWP)
  • Sampooma Gramccna RozgarYojana ( SGRY).
  • Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP): it provides guaranteed wage employment to every household whose one adult volunteer will get unskilled labour for a minimum of 100 days ¡n a year,

Question 39.
Explain the defects of the agricultural market.
Answer:
Agricultural marketing is a process that involves assembling, storage, processing, transportation. packaging, grading and distr4bution of different agricultural commodities across the country. The major drawbacks of agriculture marketing in India arc as follows:

  • long chain of middlemen taking away the profit of farmers
  • No proper storage facilities to protect the agricultural products
  • Faulty methods of weighing/measuring agricultural crops
  • Manipulation of accounts
  • Farmers are forced to sell their products at low prices due to lack of information.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 40.
What are the various indicators of the human development index?
Answer:
The various indicators of human development are as follows:
(a) Human development index: It consists of standard of living index, life expectancy at birth and educational attainment. If the HDI is high it is good indicator of human development.

(b) Life expectancy at birth: It is the average number of years a person is expected to live. In other words, it is the longevity of life. A high value of life expectancy better indicates a quality human development.

(c) Adult literacy rate: It is the average number of persons who have reading and writing skills with basic local knowledge. It is expressed in percentages. The high literacy rate shows high human development.

(d) GDP per capita: The gross domestic product per head is also one of the indicators of human development. The high value of GDP per capita indicates better human development.

(e) Infant mortality rate: It means the death of babies per thousand live births. If the IMR . is high it indicator’s low human development.

(f) Maternal mortality rate: It shows the death of mothers per 1 lakh live births. If MMR is low, it indicates better human development.

(g) Population using improved sanitation: If the percentage of the population using improved sanitation is more, it is a good indicator of human development.

(h) Population with sustainable access to improved water sources: If the percentage of the population using sustainable access to an improved water source is high, it is a good indicator of human development.

(i) People living below the poverty line: If fewer people are living below the poverty line, then it is a good indicator of human development.

(j) Percentage of children undernourished: If the number of undernourished children is diminishing, then it is a good indicator of human development

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
What are the parts of a Table? Explain.
Answer:
When data is represented in rows and columns, it is called tabulation. To construct a table, it is important to know the different components of a good statistical table. When all the components are put together systematically, they form a table.

Tabulation can be done using one way. two way or three-way classification depending upon the number of characteristics involved.

A good table should have the following parts:
(a) Table number: Table number is given to a table for identification purposes. If more than one table is presented, it is the table number that distinguishes one table from another. It is given at the top or at the beginning of the title of the table.

(b) Title: The title of the table gives about the contents of the table. It has to be very clear, brief and carefully worded, so information interpretations made from the table are clear and free from any confusion.

(c) Captions: These are the column headings given as designations to explain the figures of the column.

(d) Stubs: These are headings given to row s of the table. The designations of the row-s are also called stubs or stub items and the left column is known as stub column.

(e) Body of the table: It is the main part and it contains the actual data. Location of any one data in the table is fixed and determined by the row and column of the table.

(f) Headnote/Unit of measurement: The units of measurement of the figures in the table should always be stated along w ith the title. If figures are large, they should be rounded off and the method of rounding should be indicated.

Question 42.
Calculate co-efficient of Quartile deviation for the following distribution.
1st PUC Economics Previous Year Question Paper March 2020 (South) 4
Answer:
1st PUC Economics Previous Year Question Paper March 2020 (South) 9
1st PUC Economics Previous Year Question Paper March 2020 (South) 10
Now to calculate Q1
Q3 = Size of \(\left(\frac{3(n)}{4}\right)^{t h}\) item = Size of \(\frac{3(88)^{t h}}{4}\) item
= Size of \(\left(\frac{264}{4}\right)^{\text {th }}\) item = Size of 66th item

So the Q3 falls in 76 – 80
To calculate the exact Q3 the following formula is used:
1st PUC Economics Previous Year Question Paper March 2020 (South) 11
Coefficient of QD = 0.08 161

Question 43.
Calculate Q1, Q2 and Q3 from the following data.
22, 26, 14, 30, 18, 11, 35, 41, 12, 32
Answer:
1st PUC Economics Previous Year Question Paper March 2020 (South) 14
1st PUC Economics Previous Year Question Paper March 2020 (South) 15
1st PUC Economics Previous Year Question Paper March 2020 (South) 16

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Explain the effects of Reforms in Agriculture.
Answer:
The economic reforms of 1991 have not been able to benefit agriculture, where the growth rate is not up to the expected level.

The public scctor investment in agricultural sector. particularly in infrastructural development like irrigation. power. roads, market linkages and research and extension has fallen during in the reform period.

The removal of fertilizer subsidy has lcd to an increase in the cost of production, which has severely affected the small and marginal farmers.

This sector has been experiencing a number of policy changes such as reduction in import duties on agricultural products, removal of minimum support price and lifting of quantitative restrictions on agricultural products.

These have adversely affected Indian farmers as they now have to face increased international competition.

Further, due to export oriented polic strategies in agriculture, there has been a shift from production for the domestic market towards production for the export market focusing on cash crops in steel of production of food grains. This has resulted in increase in an prices of food grains.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 45.
Examine the role of education in the Economic Development of a nation.
Answer:
The education plays a predominant role in economic development of India in the following ways:
(a) It modernizes the attitude and behaviour of the people: Education brings favourable changes in the attitude and behaviour of people. It gives inputs like what is right and what is wrong and contributes for taking sound and valuable judgments.

(b) Promotes science and technology: Education always provides the knowledge about latest technology to people who know reading and writing. It explains the new methods of production through innovations in various sectors of the economy. By providing scope for latest techniques of production, it develops agriculture, industry, transport, power, etc.

(c) Increases mobility of labours: Education helps the labourers to search for more reward¬ing employment opportunities all over the w7orld. It helps to chooses a suitable career according to one’s educational qualifications. It makes them to move from country to country or state to state as and when required.

(d) Creates national and developmental consciousness: Education creates civic, national and developmental consciousness among the literates. It provides information about the past events in History and tells about the freedom struggle of great national leaders like Mahatma Gandhi, Bhagath Singh, Subhas Chandra Bose and others. It makes people to develop a sense of patriotism and helps them to adopt strategies of progress in life.

(e) Contributes to skilled and trained workers: Education generates skilled and trained labour force needed for the development of the country. Education includes both general and technical education. The general education includes Bachelor of Arts. Bachelor of Commerce, Bachelor in Business Administration, etc. at the degree level and technical education includes Bachelor in Engineering in different streams like mechanical, civil, electronic, electrical, computer, etc. All these contribute for the supply of skilled labour for tlie overall development of the country.

(f) Act as source of knowledge: Education is a house of know ledge for all purposes. Any¬thing to know we need to be literate. It helps people to take decisions on the basis of their know ledge gained in different stages while getting education .

(g) Develops moral values: As education provides number of stories and incidents people’s lives, people can definitely develop moral values. These moral values are included in their daily life. Some of the moral values arer not to sell adulterated products, in case of seller and in case of buyer, not to create inconvenience for others in their routine life and so on.

(h) Creates awareness about culture and politics: Education always provides complete information about cultural heritage of any nation. It explains how they are constructed with the investment of money and human capital. It helps them to preserve historical monuments, inscriptions and other valuable items. It also provides day-to-day information about politics when the person is literate.

Question 46.
What role does the government p!av in generating employment opportunities in India?
Answer:
Government is making efforts to generate employment opportunities to unemployed persons through two categories i.e., direct and indirect.

In the first category, government is directly providing job opportunities by employing people in various departments for administrative purposes, industries, hotels, transport corporations etc.

In the second category, Government had introduced a New Economic Policy in 1991 in the form of LPG i.e., Liberalization, Priviatisation and Globalisation which has provided ampl ; opportunities to private entrepreneurs to start their own production centre which are creating employment opportunities to millions of people in India.

Further, when output of goods and services from government enterprises increase, then private enterprises which receive raw materials from government enterprises will also raise their output and hence increase the number of employment opportunities in the economy. For instance, when a government owned steel company increases its output, it will result in direct increase in employment in that government company, simultaneously, private companies, which purchase steel from it will also increase their output and thus employment. This is indirect generation of employment opportunities by the government initiatives in the economy.

There are many programmes that the successive governments have implemented to alleviate poverty through employment generation. They are known as Employment Generation Programmes.

They are as follows:
Self-employment programmes: The major Self Employment Programmes are:

  1. Swarna Jayanti Gram Swarozgar Yojana (SGSY): This programme aims at providing financial assistance to self help groups which then decide whom the loan is to be given to for self-employment activities among the members.
  2. Swarnajayanthi Shahari Rozgar Yojana (SJSRY): It aims at creating employment opportunities, for both self-employment and wage employment opportunities in urban areas. Under self-employment programmes, financial assistance is given to families or individuals. Now, programmes are encouraged to form self-help groups.
  3. Pradhana Manthri Rozgar Yojana (PMRY): The educated unemployed from low-income families in rural and urban areas can get financial help to set up some enterprise that generates employment under this scheme.

Wage employment programmes: The major national programmes to generate wage employment are as follows:

  • National Food for Work Programme (NFWP)
  • Sampoorna Grameena Rozgar Yojana (SGRY)
  • Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP): It provides guaranteed wage employment to every household whose one adult volunteer will get unskilled labour for a minimum of 100 days in a year.

All these programmes aim at providing not only employment but also services in areas such as primary health, primary education, rural drinking water, nutrition, assistance for people to buy income and employment generating assets, development of community assets by generating wage employment, assistance for constructing houses, laying of rural roads, development of wastelands.

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
Prepare a list of causes of land Degradation in India.
Answer:
Land in India suffers from varying degrees and types of degradation. These are increasing mainly due to the factors mentioned below:
(a) Deforestation. i.e. reckless cutting down of trees resulting in loss of vegetation.
(b) Indiscriminate and over exploitation of forest products such as fuel wood and overgrazing.
(c) Conversion of forest lands into agricultural lands.
(d) Forest fire and faulty methods of cultivation.
(e) Excessive application of pesticides and insecticides.
(f) Disproportionate and excessive use of chemical fertilizers in Indian agriculture.
(g) The irrigation systems in India are not properly planned and managed.
(h) Overexploitation of ground water for various competing utilities like human settlement, industrialization, etc.
(j) No proper introduction of crop rotation techniques and organic fanning.
(j) Illiteracy and ignorance of rural population in respect of causes and effects of land degradation.

Land is indispensable for human settlement. 1f proper care is not taken for the conservation of land and water, there shall be severe scarcity of water and natural resources in future which may lead to conflict among the countries.

1st PUC Economics Previous Year Question Paper March 2020 (South)

Question 48.
On the basis of data you have collected regarding the participation of women in your locality in the below mentioned categories construct a Pie Chart.

Status

Population

(a) Marginal Worker 12
(b) Main Worker 36
(c) Non-Worker 73

Answer:
1st PUC Economics Previous Year Question Paper March 2020 (South) 12
1st PUC Economics Previous Year Question Paper March 2020 (South) 13

Question 49.
Write a note on SENSEX.

Status Population
(a) Marginal Worker 12
(b) Main Worker 36
(c) Non-Worker 73

Answer:
Sensex is the short form for the of Bombay Stock Exchange Sensitive Index with 1978-79 as base. The value of the sensex is with reference to this period. It is the benchmark index for the

Indian stock market, It consists of3O stocks which represent 13 sectors of the economy and the companies listed are leaders in their respective industries. If the sensex rises. ¡t indicates that the market is doing well and investors expect better earnings from companies. It also indicates a growing confidence of investors in the basic health of the economy.

Further, the sensitive index is a market capitalization of the weighted index of a sample of large. well established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collcctie consciousness of investors. This index is idely used to measure the performance of the Indian stock market. It is the pulse of the Indian capital market.

1st PUC Economics Model Question Paper 7 with Answers

Students can Download 1st PUC Economics Model Question Paper 7 with Answers, Karnataka 1st PUC Economics Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Model Question Paper 7 with Answers

Time: 3.15 Hours
Max Marks: 100

Instructions:

  1. Write the question numbers legibly in the margin.
  2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Economics is the study of mankind in of life.
(a) The ordinary business
(b) Extraordinary business
(c) The weekly business
(d) Special business
Answer:
(a) The ordinary business

Question 2.
Ogives can be helpful in locating graphically the
(a) Mode
(b) Mean
(c) Median
(d) None of these.
Answer:
(c) Median

Question 3.
Railway transport was introduced in India in the year
(a) 1835
(b) 1776
(c) 1850
(d) 1853
Answer:
(c)1850

1st PUC Economics Model Question Paper 7 with Answers

Question 4.
Poverty line separates
(a) Poor and non-poor
(b) Rich and non-rich
(c) Poor and weak
(d) None of these
Answer:
(a) Poor and non-poor.

Question 5.
GDP stands for
(a) Gross domestic product
(b) Gross dollar price
(c) Gross domestic price
(d) None of these
Answer:
(a) Gross Domestic Product

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Two ends of a class are called ___________
Answer:
Class limits

Question 7.
A measure that divides a series into hundred equal parts is called ____________
Answer:
Percentiles

Question 8.
Tax on the income of an individual is called ___________
Answer:
Direct tax.

Question 9.
Infrastructure facilities can be classified into types.
Answer:
Two

1st PUC Economics Model Question Paper 7 with Answers

Question 10.
_________ country has the largest workforce in agriculture.
Answer:
India.

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A

B

1. Pilot survey (a) Consumer Price Index
2. CPI (b) Milk Production
3. Quota (c) Pretesting of questionnaire
4. World Bank (d) Quantity of goods that can be imported
5. White Revolution (e) India and knowledge economy

Answer:
1-c,
2-a,
3-d,
4-e.
5-b.

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
What is dispersion?
Answer:
Dispersion refers to the extent to which values in a distribution differ from the average of the distribution

Question 13.
Why do we need statislical tools?
Answer:
Statistical tools are needed in our daily life and are used in the analysis of data pertaining to economic activities such as production. consumption. distribution, banking and insurance, trade. transport. etc.

1st PUC Economics Model Question Paper 7 with Answers

Question 14.
Define jobless growth.
Answer:
During the late 1990s. employment growth started declining and reached the level of growth that India had in the early stages of planning. During thcse years. we also find a widening gap

Question 15.
Give the meaning of sustainable development.
Answer:
According to l3rundtland Commission. sustainable de elopment is the process of development which meets the needs of the present generation without compromising the ability of future generation to fleet their own needs”.

Question 16.
Which country lias the highest life expectancy?
Answer:
China.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Mention the two sources of data,
Answer:
Primary data and secondary data are the two sou rccs of data,

Question 18.
Give the formula to find out midpoint.
Answer:
The formula to find out midpoint is as foIlos:
Mid point = \(\frac{\text { Upper class limit }+\text { Lower class limit }}{2}\)

Question 19.
How can you obtain a frequency curve?
Answer:
The frequency curve is obtained b drawing a smooth freehand cune passing through the points of the frequency polygon as closely as possible. It may not necessarily pass through all the points of the frequency polygon but it passes through them as closely as possible.

1st PUC Economics Model Question Paper 7 with Answers

Question 20.
Calculate the value of the median from the following figures.
X: 5 7 9 12 11 8 7 15 25
Answer:
We need to put in ascending order
1st PUC Economics Model Question Paper 7 with Answers 5

Question 21.
What is negative correlation? Give an example,
Answer:
The correlation is said be negative when the variables move in opposite directions.

Example:

  • When the price of tomato increases, the demand for tomatoes decreases.
  • More is the time spent for studies. less are the chances of failure,

Question 22.
Write the role of the questionnaire in developing a project.
Answer:
The collection of data by using the primary method can be done by using a questionnaire or an interview schedule which may be obtained by personal interviews, mailing or postal surveys. phone, email, etc, Preparation of a well-balanced questionnaire will help the process of research simple, fast and accurate, It becomes the record of what is actually surveyed.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
List out the important export goods of India before independence.
Answer:
The important export goods of India before independence were raw Silk, cotton, wool, sugar. indigo, jute. etc.

Question 24.
Who are the rural poor? Give example.
Answer:
Rural poor are those people who live in villages without basic needs. Example land less labourers. Even if some have land. it is on I dry or aste land. Many do not get even two meals a day. They borrow from moneylenders or landlords who charge high rates of interest that leads to rural indebtedness.

1st PUC Economics Model Question Paper 7 with Answers

Question 25.
State the meaning of human capital.
Answer:
Human capital refers to that part of population that possesses skills. kno ledge. education and experience. It also includes the ability of human beings to give their best and their ability to create economic alue for thìns.

Question 26.
Name the institutional sources of rural credit.
Answer:
The institutional sources of niral credit are as folÍows:

  • Commercial Banks
  • Regional Rural Banks (RRBs)
  • Cooperative Societies
  • Land Deeloprnent Banks.

Question 27.
What is unemployment according to NSSO?
Answer:
According to National Sample Survey Organisation (NSSO), imemployment is a situation in which all those who, owing to lack of work, are not working but either seek work through employment exchanges, intermediaries, friends or relatives or by making applications to prospective employers or express their willingness or availability for work under the prevailing condition of work and remunerations.

Question 28.
What are the components of Indian systems of medicines?
Answer:
The components of Indian systems of medicine (AYUSH) are as follows:

  • Avurveda.
  • Yoga
  • Unani
  • Siddha
  • Naturopathy
  • Homeopathy.

1st PUC Economics Model Question Paper 7 with Answers

Question 29.
Give the meaning of biopest control. Give examples.
Answer:
Bio-pest control is a method of using pesticides based on plant products and spreading awareness about various animals and birds which help in controlling pests. For example.
. Neem trees are useful to control pests, mixed cropping and growing different crops in successive years on the sanie land also helps.
. Snakes arc one of the important groups of animals which devour rats, mice and various other pests, as their food.
Similarly, large varieties of birds like owls and peacocks. pray upon vermin and pests. if these are allowed to dwell around the agricultural land, they can clear a large amount of pests including insects. Frogs and lizards are also usefùl in their regard.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
Briefly explain how statistics help to study economics.
Answer:
Statistics plays a very important role in the field of economics. It helps in the study of economics in many ways:
(a) It helps to understand economic problems: B using various statistical tools, effort is being made to find the causes behind the economic problems with the help of qualitative and the quantitative facts, Once the causes of a problem are identified, it is easier to formulate certain policies to tackle them.

(b) It enables an economist to present economic facts in a precise and definite form: Statistics help the economists to present economic facts with accuracy. It also helps in proper comprehension of what is stated in the subject matter. When economic facts are expressed in statistical terms, they become exact. Exact facts are more convincing than vague statements. For instance, saving 350 people have died in Kashmir unrest since 2000, is more accurate than saving that a lot of people have died in the unrest.

(c) Helps in condensing mass data into a few numerical measures: Statistics condenses the mass data into a few numerical measures like mean, variance, correlation, etc. These numerical measures help to summarise data. For example. it would be impossible to remember the income of all the people of a country. But we can remember average income i.e., per capita income.

(d) It is used to find relationships between different economic factors: An economist may be interested in finding out what happens to the demand for a commodity when its price changes or what i1l be impact on inflation, when the government has more budget deficits. Such situations can be dealt, if any relationship exists between the various economic factors. Here, the nature of relationship can be studied with the help of statistical tools.

(e) It helps in formulation of plans and policies: Sometimes, formulating plans and policies require the knowledge of future trends. For instance, an economic planner has to decide in 2010 how much the economy should produce in 2016-17. In other words, one must know what could be the expected level of consumption in 20 16-17. So. the statistical tools to predict consumption in 2016-17 could be based on the data of consumption of past years obtained by surveys.

1st PUC Economics Model Question Paper 7 with Answers

Question 31.
Does sample survey provide better results than census? Give reasons for your answer.
Answer:
Yes. sample&sun’ey provide better results than census.

A sample refers to a group or section of the population from which information is to be obtained.
A good sample is generally smaller than the population and is capable of providing reasonably accurate information about the population at a much lower cost and shorter time.
Suppose you want to studs’ the average income of people in a particular state. according to the census method. we need to find out the income of even individual in the region, add thcrn up and divide by number of individuals to get the average inconic of people in the state, This method would require huge expenditure. as a large number of investigators are to be employed.

Altematively if a represcntatie sample of few individuals is selected from the state to find their inCome, it saves time. money and energy in the process of determination of income.

To sum up, sampling is considered a better method due to following reasons:

  • It is more economical than the other techniques of collection of data
  • Sample investigation can be done at a greater speed as it consumes less time
  • When sampIig is conducted scientifically and carefully, it gives accuracy
  • Planning. organ1ation and supervision can be conveniently managed which leads to administrative conveniencc.

Question 32.
Write a note on classification of data.
Answer:
The raw data are classified in various ways depending on the purpose. Generally, data can be
classified as follows:
(a) Chronological classification: When the data is grouped according to time, it is called as chronological classification. In such a classification, data are classified either in ascending or in descending order with reference to time such as years. quarters. months weeks days. etc.

(b) Spatial classification: if the data are classified with reference to geographical locations such as countries. states. cities. districts. etc.. it is called spatial classification.

(c) Qualitative classification: Vhcn the data arc classified on the basis of certain attributes or qualities like literacy. religion. gender. marital status etc.. then it is called qualitative classification. These attributes can be classified on the basis of either the presence or the absence of a qualitative characteristic.

(d) Quantitative classification: If the classification of data is done on the basis of certain characteristics like height. weight. age. income, marks of students etc., it is called as quantitative classification.

1st PUC Economics Model Question Paper 7 with Answers

Question 33.
The yield of wheat per acre for 10 districts of one as state is under:
1st PUC Economics Model Question Paper 7 with Answers 1
Answer:
First we need to write the yield of wheat in arc ascending order
x: 9 10 10 12 15 16 18 19 21 25
Median Size of \(\left(\frac{N+1}{2}\right)^{t h}\) item
= Size of \(\left(\frac{10+1}{2}\right)^{\text {th}}\) item
= Size of \(\left(\frac{11}{2}\right)^{t h}\) item
= Size of 55th item

To get median. we need to add the’ 5th and 6th items and the same divided b 2.
Median= \(\frac{5^{\text {th }} \text { item }+6^{\text {th }} \text { item }}{2}=\frac{15+16}{2}=\frac{31}{2}\) =15.5

Median = 15.51

Calculation of mean deviation from median
1st PUC Economics Model Question Paper 7 with Answers 12
Mean deviation from median (MDM)
MDM = \(\frac{\Sigma|\mathrm{D}|}{\mathrm{N}}=\frac{43}{10}\) = 4.3
∴ IMDM = 4.3 tonnes

Question 34.
Draw a scatter diagram and interpret.
1st PUC Economics Model Question Paper 7 with Answers 2
Answer:
1st PUC Economics Model Question Paper 7 with Answers 13
Interpretation: There is a perfect positive correlation between X and Y.

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
What do you understand by the ‘Drain of Indian wealth’ during colonial period?
Answer:
The most important feature of 1ndias foreign trade during British rule was the generation of a large export surplus. That means Indias exports exceeded its imports. It resulted in disadantage to the countrvs economy.

The essential commodities were not made available to Indians as the’ were exported to Britain in large quantities ignoring domestic needs.

The export surplus (value of exports being greater than the value of imports) was used to make payments for the expenses incurred by an office set up by the colonial government in Britain, expenses on war, again fought by the British Government and the import of invisible items.

This is known as Drain of Indian health.

1st PUC Economics Model Question Paper 7 with Answers

Question 36.
Give the meaning and importance of small scale industries.
Answer:
A small scale industry is defined with reference to the maximum inestment allowed on the assets of a production unit, A small scale industry is one where the investment is less than one crore rupees.

Small scale industries play a veiy important role in the economic development of India. It is a known fact that small scale industries are more labour intensive i.e.. they use more labour than the large scale industries and therefore, generate more employment.

Apart from the above, the small scale industries require less capital as they are small units. The are free from industrial unrest. They also depend on indigenous resources and need not depend on foreign resources. Small scale industries were also given concessions like lower excise dut and bank loans at lower interest rates.

Question 37.
Write a note on outsourcing.
Answer:
Outsourcing is a process in which a company hires regular service from external sources, usually from other countries, which was previously provided internally. It includes legal advice, computer service, advertisement, security, etc.

As a form of economic activity, outsourcing has intensified in recent years due to fast mode of the communication network. Many services like voice based business processes. record-keeping. accountancy, banking services, music recording. film editing. book transcription, clinical advice or e en teaching are being outsourced by companies in developed countries to India. The modem telecommunication links like internet. the text, voice and visual data in respect of these services is digitized and transmitted throughout the world. Most of the multinational corporations and small companies are outsourcing their services to India where they can be availed at a cheaper cost. The low wage rates and availability of skilled labour in India have made it a favorite destination for global outsourcing.

1st PUC Economics Model Question Paper 7 with Answers

Question 38.
Explain the drawbacks of the agriculture market.
Answer:
Agricultural marketing is a process that involves assembling, storage, processing, transportation. packaging, grading and distribution of different agricultural commodities across the country. The major drawbacks of agriculture marketing in India are as follows:

  • Long chain of middlemen taking away the profit of farmers
  • No proper storage facilities to protect the agricultural products
  • Faulty methods of weighing/reasoning agricultural crops
  • Manipulation of accounts
  • Farmers are forced to sell their products at low prices due to lack of information.

Question 39.
Write a short note on women health in India.
Answer:
Women constitute about 50% of the total population in India. They suffer many disadvantages as compared to men in the areas of education, participation in economic activities and health care.

The decline in the child sex ration in the country from 927 in 2001 to 914 in 2011, points to the growing incidence of female foeticide in the country. Close to 3 lakh girls under the age of 15 are not only married but have already borne children at least once. More than 50 % of married women between the age group of 15 to 49 have anemia and nutritional anemia caused by iron deficiency. which has contributed to 19% of maternal deaths. Frequent abortions are also a major cause of maternal morbidity and mortality in India.

1st PUC Economics Model Question Paper 7 with Answers

Question 40.
What are the various indicators of human development?
Answer:
The various indicators of human development are as follows:
(a) Human development index: It consists of standard of living index, life expectancy at birth and educational attainment. If the HDI is high it is good indicator of human development.

(b) Life expectancy at birth: It is the average number of years a person is expected to live. In other words. it is the longevity of life. A high vaLue of life expectancy better indicates a quality human development.

(c) Adult literacy rate: It is the average number of persons who have reading and writing skills with basic local knowledge. It is expressed in percentags. The high literacy rate shows high human development.

(d) GDP per capita: The gross domestic product per head is also one of the indicators of human development. The high value of GDP per capita indicates better human development.

(e) Infant mortality rate: It means the death of babies per thousand live births. If the IMR is high it indicter’s low human development.

(f) Maternal mortality rate: It shows the death of mothers per 1 Iakh live births. If MMR is low, it indicates a better human development.

(g) Population using improved sanitation: ¡f the percentage of population using improved sanitation is more, it is a good indicator of human development.

(h) Population with sustainable access to improved water sources: 1f the percentage of the population using sustainable access to improved water source is high, it is a good indicator of human development.

(i) People living below poverty line: If less people are living below poverty line, then it is a good indicator of human development.

(j) Percentage of children undernourished: If the number of undernourished children is diminishing, then it is a good indicator of human development.

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
What is tabulation? What are the parts of a table? Explain.
Answer:
When data is represented in rows and columns, it is called tabulation. To construct a table, it is important to know the different components of a good statistical table. When all the components are put together systematically, they form a table.

Tabulation can be done using one way. two way or three way classification depending upon the number of characteristics involved.

A good table should have the following parts:
(a) Table number: Table number is given to a table for identification purpose. If more than one table is presented, it is the table number that distinguishes one table from another. It is given at the top or at the beginning of the title of the table.

(b) Title: The title of the table gives about the contents of the table. It has to be very clear, brief and carefully worded, so information interpretations made from the table are clear and free from anv confusion.

(c) Captions: These are the column headings given as designations to explain the figures of the column.

(d) Stubs: These are headings given to row s of the table. The designations of the row-s are also called stubs or stub items and the left column is known as stub column.

(e) Body of the table: It is the main part and it contains the actual data. Location of anyone data in the table is fixed and determined by the row and column of the table.

(f) Headnote/Unit of measurement: The units of measurement of the figures in the table should always be stated along with the title. If figures are large, they should be rounded off and the method of rounding should be indicated.

(g) Source: It is a brief statement or phrase indicating the source of data presented in the table. If more than one source is there, all the sources are to be mentioned.

(h) Note: It is the last part of the table. It explains the specific feature of the data content of the table which is not self-explanatory and has not been explained earlier.

Question 42.
Calculate mode from the following distribution.
1st PUC Economics Model Question Paper 7 with Answers 3
Answer:
1st PUC Economics Model Question Paper 7 with Answers 6
By seeing the frequency column, we can make out that the class interval 30-40 is considered as the modal group. To find out exact mode the following formula is used.
1st PUC Economics Model Question Paper 7 with Answers 7

1st PUC Economics Model Question Paper 7 with Answers

Question 43.
Calculate the SD of the following frequency distribution of heights of 30 persons by direct method.
1st PUC Economics Model Question Paper 7 with Answers 4
Answer:
1st PUC Economics Model Question Paper 7 with Answers 8
1st PUC Economics Model Question Paper 7 with Answers 9

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Briefly explain the important areas of liberalization.
Answer:
Liberalisation was one of the reforms of the New Economic Policy of 1991. It was introduced to put an end to the restrictions and open up various sectors of the economy.

The following are the important areas of liberalization:
(a) Deregulation of the industrial sector: The liberalization policy removed many restrictions enforced on the industrial sector. Industrial licensing was abolished for almost all but product categories like alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals. The only industries which are not reserved for the public sector are defense equipment, atomic energy generation and railway transport. Many goods produced by the small-scale industries have now been deserved.

(b) Financial sector reforms: The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange markets.

The financial sector in India is regulated by the Reserve Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates, nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from the regulator to facilitator of the financial sector. That means the financial sector may be allowed to take decisions on many matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. Foreign investment limit in banks was raised to around 50%. The banks which fulfill certain conditions have been given the freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers, mutual funds and pension funds are now allowed to invest in Indian financial markets.

(c) Tax reforms: These are the reforms that are concerned with the government’s taxation and public expenditure policies which are collectively known as its fiscal policy. There are two types of taxes, direct and indirect.

Since 1991, there has been a continuous reduction in the taxes on individual incomes as it was felt that high rates of income tax were an important reason for tax evasion. It is now widely accepted that moderate rates of income tax encourage savings and voluntary disclosure of income.

The rate of corporation tax (tax on income of companies) which was very high earlier has been gradually reduced. A new tax called Goods and Services Tax (GST) has been introduced from 1.7.2017 to bring uniformity in indirect taxes.

In order to encourage better compliance on the part of tax payers, many procedures have been simplified and the rates also substantially lowered.

(d) Foreign exchange reforms: During 1991, the Government took an immediate measure to resolve the balance of payments crisis, the rupee was devalued against foreign currencies. This led to an increase in the inflow of foreign exchange. It also set the tone to free the determination of rupee value in the foreign exchange market from government control. At present, the market forces i.e., demand and supply, determine the exchange rates.

(e) Trade and investment policy reforms: A new trade and investment policy under liberalization strategy was made to increase international competitiveness of industrial production and a foreign investments and technology into the economy. The aim was also to promote the efficiency of the local industries and the adoption of modem technologies.

To protect Indian industries, the government was following quantitative restrictions on imports which encouraged tight control over imports. At the same time, tariffs were very high. These policies reduced efficiency and competitiveness which led to a slower growth of the manufacturing sector.

The main objectives of Trade and Investment Policy were:

  • To remove quantitative restrictions on imports
  • To reduce quantitative restrictions in exports
  • Reducing tariff rates
  • Removal of licensing system.

Import licensing was abolished except in case of hazardous and environmentally sensitive industries. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were also fully removed.

Export duties have been removed to increase the competitive position of Indian goods in the international markets.

A process of disinvestment was also initiated by selling of part of equity shares of public sector enterprises to the public.

1st PUC Economics Model Question Paper 7 with Answers

Question 45.
Examine the role of education in the economic development of a nation.
Answer:
Education plays a predominant role in economic development of India in the following
ways:
(a) it modernizes the attitude and behaviour of the people: Education brings favourable changes in the attitude and behaiourofpcoPlC. It gives inputs like hat is right and what is wrong and contributes for taking sound and valuable judgments.

(b) Promotes science and technology: Educational was provided the knov ledge about latest technology to people who know reading and writing. It explains the new methods of production through innovations in various sectors of the economy. By providing scope for latest techniques of production. it develops agriculture, industry, transport, power. etc.

(c) Increases mobility of labours: Education helps the labourers to search for more rewarding employment opportunities all over the world. It helps to chooses a suitable career according to one’s educational qualifications. It makes them to move from country to country or state to state as and when required.

(d) Creates national and developmental consciousness: Education creates civic, national and developmental consciousness among the literates. It provides information about the past events in History and tells about the freedom struggle of great national leaders like Mahatma Gandhi, Bhagath Singh, Subhas Chandra Bose and others. It makes people to develop a sense of patriotism and helps them to adopt strategies of progress in life.

(e) Contributes to skilled and trained workers: Education generates skilled and trained labour force needed for the development of the country. Education includes both general and technical education. The general education includes Bachelor of Arts. Bachelor of Commerce, Bachelor in Business Administration, etc. at the degree level and technical education includes Bachelor in Engineering in different streams like mechanical, civil, electronic, electrical, computer, etc. All these contribute for the supply of skilled labour for tlie overall development of the country.

(f) Act as source of knowledge: Education is a house of knowledge for all purposes. Any¬thing to know we need to be literate. It helps people to take decisions on the basis of their knowledge gained in different stages while getting education.

(g) Develops moral values: As education provides number of stories and incidents people’s lives, people can definitely develop moral values. These moral values are included in their daily life. Some of the moral values arer not to sell adulterated products, in case of seller and in case of buyer, not to create inconvenience for others in their routine life and so on.

(h) Creates awareness about culture and politics: Education always provides complete information about cultural heritage of any nation. It explains how they are constructed with the investment of money and human capital. It helps them to preserve historical monuments, inscriptions and other valuable items. It also provides day-to-day information about politics when the person is literate.

Question 46.
What do you mean by organized sector? Discuss the reasons for fall in employment in the organized sector.
Answer:
The organized sector is that sector which includes all the Public Sector Establishments and those Private Sector Establishments which employ 10 or more hired workers. They are called formal sector or organized sector establishments and those who work ¡n such establishments are formal sector workers or organized labour.

The following are the major reasons for the decline in employment opportunities in organized sector:

  • Lack of initiative from the government in creating new employment opportunities
  • Industrial sickness has made Public Sector Industries to cut down on their vacancies
  • The migratory character of the workforce
  • The strict labour laws have made Public Sector Enterprises to go for formalisation of labour which has resulted in a decline in emp1oymnt opportunities
  • Privatization and Disinvestment have made decrease in jobs in the public sector.
  • Amalgamation amid merger among large scale industries have led to decrease in employment opportunities

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
Record the daily expenditure, the quantity bought and prices paid per unit of the daily purchases, such as rice, toor dal, tomato, onion and milk of your family for two weeks.
How has the price change affected your family?
Answer:
The following table shows the list of items with quantities purchased by a family:
1st PUC Economics Model Question Paper 7 with Answers 10
No need to calculate CPI by calculating price relatie with the help of formulae.
1st PUC Economics Model Question Paper 7 with Answers 11
Calculation of Living Index or Consumer Price Index is calculated as follows:
CPI = \(\frac{\Sigma \mathrm{WP}}{\Sigma \mathrm{W}}=\frac{1600}{15}\) = 106.66
CPI = 106.66
Comment: It shows that there is an increase in price by 6.66°c. which has a little effect on standard of 1iing,

1st PUC Economics Model Question Paper 7 with Answers

Question 48.
Suppose you are a resident of a village, suggest a few measures to tackle the problem of poverty.
Answer:
Poverty has become a major challenge in rural economy of India. As a resident of a village I can suggest the following measures to tackle the problem of poverty:

  • Providing free and compulsory education to each and every individual in rural areas
  • Supplying agricultural inputs like seeds, chemical fertilizers, etc. to farmers at subsidized rates
  • Removal of all defects of agricultural marketing
  • Creating self-employment opportunities
  • Provision of transport and communication facilities to rural areas
  • Arranging banking facilities so that the fanners get sufficient crop loans at low rate of interest ‘
  • Encouraging agriculture allied activities like poultry farming, dairy farming, beekeeping, sericulture, horticulture, etc.
  • Encouraging change in crop pattern, mixed farming, and adopting scientific methods to grow crops
  • Provision of free health care facilities
  • Continuous supply of electricity to all pump sets at free of cost
  • Supply of essential commodities to landless labourers, small and marginal farmers
  • The government should provide all necessary infrastructural facilities for the overall development of rural economy.

Question 49.
Prepare a list of causes of land degradation in India.
Answer:
Land in India suffers from varying degrees and types of degradation. These are increasing mainly due to the factors mentioned below:
(a) Deforestation, ie, reckless cutting down of trees resulting in loss of vegetation.
(b) Indiscriminate and over-exploitation of forest products such as fuelwood and overgrazing.
(c) Conversion of forest lands into agricultural lands.
(d) Forest fire and faulty methods of cultivation.
(e) Excessive application of pesticides and insecticides.
(f) Disproportionate and excessive use of chemical fertilizers in Indian agriculture.
(g) The irrigation systems in India are not properly planned and managed.
(h) Overexploitation of groundwater for various competing utilities like human settlement, industrialization, etc.
(1) No proper introduction of crop rotation techniques and organic farming.
(j) Illiteracy and ignorance of rural population in respect of causes and effects of land degradation.

The land is indispensable for human settlement. If proper care is not taken for the conservation of land and water, there shall be a severe scarcity of water and natural resources in the future which may lead to conflict among the countries.

1st PUC Economics Model Question Paper 6 with Answers

Students can Download 1st PUC Economics Model Question Paper 6 with Answers, Karnataka 1st PUC Economics Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Model Question Paper 6 with Answers

Time: 3.15 Hours
Max Marks: 100

Instructions:

  1. Write the question numbers legibly in the margin.
  2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Frequency polygon is used in the presentation of
(a) Ungrouped data
(b) Both types of data
(c) Grouped data
(d) None of these
Answer:
(c) Grouped data

Question 2.
Bibliography indicates
(a) Primary sources
(b) Oral resources
(c) Secondary sources
(d) T.V.News
Answer:
(c) Secondary sources

Question 3.
In India, census is carried out once in
(a) 5 years
(b) 10 years
(c) 2 years
(d) 20 years
Answer:
(b) 10 years

1st PUC Economics Model Question Paper 6 with Answers

Question 4.
It is an agricultural allied activity
(a) Poultry
(b) Cottage industry
(c) Tourism
(d) Small industry
Answer:
(a) Poultry

Question 5.
GNP stands for
(a) Gross national price
(b) Good network product
(c) Gross national product
(d) None of these.
Answer:
(c) Gross national product

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Resources are limited but wants are _____________
Answer:
unlimited

Question 7.
Arithmetic line graph is also called as___________
Answer:
Time series graph

Question 8.
_______ transport is considered as the most important contribution of British rule
Answer:
Railways

Question 9.
Economic reforms were introduced in India in the year____________
Answer:
1991

1st PUC Economics Model Question Paper 6 with Answers

Question 10.
________ state has achieved excellence in information technology
Answer:
Karnataka

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A B
1. Pilot survey (a) Fruit production
2. Consumer price index (b) Institutional finance
3. Golden revolution (C) Petroleum
4. NABARD (d) Cost of living index
5. Nonrenewable resource (e)Pretesting questionnaire.

Answer:
1-c
2-d.
3-a.
4-b.
5-c.

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
What is economics according to Alfred Marshall?
Answer:
According to Alfred Marshall. ”Economics is the study of mankind in the ordinary business of life. It examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being”

Question 13.
Why did the colonial government ban canal transport?
Answer:
The colonial government banned canal transport as the measures taken for development of inland trade and sea lanes were far from satisfactory. The inland w aterw ays proved uneconomical and failed to compete with railways.

Question 14.
Expand IBRD.
Answer:
International Bank for Reconstruction and Development.

1st PUC Economics Model Question Paper 6 with Answers

Question 15.
What is infrastructure?
Answer:
Infrastructure is a network of physical facilities and public services which act as important base for economic and social development of the country.

Question 16.
Expand NCERT.
Answer:
National Council of Educational Research and Training.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Give the meaning of pilot survey.
Answer:
Once a questionnaire is ready, it is advisable to conduct a try out with a small group which is known as pilot survey or pretesting of the questionnaire. It gives a preliminary idea about the survey. It helps in pretesting of the questionnaire, so as to know1 the shortcomings and drawbacks of the questions.

Question 18.
Give the formula to find out mid point.
Answer:
The formula to find out midpoint is as follows:
Mid point = \(\frac{\text { Upper class limit + Lower class limit }}{2}\)

Question 19.
Write the meaning of temporal classification with an example.
Answer:
Temporal classification is one in which the classification of data is done on the basis of time. Example hours, days, weeks, months, years, decades, etc.

Question 20.
Calculate the value of the mean from the following figures
X: 50, 70, 90, 120, 110, 80, 70, 150, 250.
Answer:
X̄ = \(\frac{\Sigma X}{N}=\frac{990}{9}\) = 110

1st PUC Economics Model Question Paper 6 with Answers

Question 21.
Which quartiles are used to calculate the interquartile range? Give the formula of it.
Answer:
The upper and lower quartiles are used to calculate the interquartile range.
It is calculated by using the formula Interquartile range = Q3 – Q1

Question 22.
Write any four features of index numbers.
Answer:
The four features of index numbers are as follows:

  • Index numbers are specialized averages
  • Index numbers are expressed in percentages
  • Index numbers measure the effect of changes in relation to time or place.
  • Index numbers measure the changes that are not capable of direct measurement.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
Name the modern industries which were in operation in our country at the time of Independence.
Answer:
The modem industries which were in operation in our country at the time of independence were Tata Iron and Steel Company, cotton textile industry, jute industry, sugar industry, cement industry, paper industry, etc.

Question 24.
What do you mean by the green revolution? How was it possible?
Answer:
Green revolution refers to the large increase in the production of food grains resulting from the use of high yielding variety seeds, particularly for wheat and rice.

We could achieve green revolution with high yielding variety of seeds, irrigation facilities and financial resources to purchase fertilizer and pesticides. So the benefits of the green revolution were restricted to only a few states like Punjab, Andhra Pradesh and Tamil Nadu.

Question 25.
What are the various forms of health expenditure?
Answer:
The various forms of health expenditures are as follows:

  • Preventive medicine (vaccination)
  • Curative medicine (medical intervention during illness)
  • Social medicine (spread of health awareness)
  • Provision of clean drinking water and good sanitation.

Question 26.
What is the role of self help groups in providing rural credit?
Answer:
The major role of self-help groups is to encourage small savings from each member and the pooled money is given as loans and advances to the needed member at a very low rate of interest and also at easy repayment installments.

1st PUC Economics Model Question Paper 6 with Answers

Question 27.
Who are all included in labor force?
Answer:
All those who are engaged in economic activities, in whatever capacity high or low are called workers. Even if some of them temporarily abstain from work due to illness, injury or othei physical disability, bad weather, festivals, social or religious functions are also workers. Apart from these, the labour force also consists of those who help the main workers and self-employed workers.

Question 28.
Write the meaning of global burden of diseases.
Answer:
The global burden of diseases is an indicator used by experts to guage the number people dying prematurely because of a particular disease and the number of years spent by the people in a state of disability owing to that disease, during a given period of time.

In India, more than half of global burden of disease is accounted for by communicable diseases like diarrhea, malaria and tuberculosis. Even year around five lakh children die of waterborne diseases.

Question 29.
Write any two threats to the environment in our country.
Answer:
The major threats of the environment in India are as follows:

  • Threat of poverty induced environmental degradation
  • The threat of pollution from rapidly growing industrial sector, air pollution, water contamination, soil erosion, deforestation, and wildlife extinction.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
How will you choose the wants to be satisfied?
Answer:
It is a well-known fact that human wants are unlimited and resources to satisfy them are limited. Though human wants are unlimited these wants vary in intensity and urgency. Some wants are more intense and urgent than other wants. We give top priority to more intense and urgent wants.

For instance, a family may want to go on a tour to America and also want to have a flat, We expect that the family opts for buying the flat first and choose to go to America later.

Hence, a consumer always selects that combination of products that give him maximum satisfaction. Similarly, a producer may take the best combination of two inputs so that it requires less cost of production and get maximum profit.

So. we have to choose thoše wants to be satisfied first which requires immediate attention. This is what we learn from the study of economics.

Question 31.
Does the lottery method always give you a random sample? Explain.
Answer:
It ¡s a well-settled fact that the lofler method always gives us a random sample. Random sampling is the one where the individual units from the population (samples) are selected at random.

For instance, the government wants to determine the impact of the price rise in LPG on the household budget of a particular locality. For this. a representative sample of 20 households has to be taken and studied. The names of the 200 households of that area are written on pieces of paper and mixed eI1. then 20 names to be interviewed arc selected one bone.

In random sampling, ever an individual has an equal chance of being selected and the individuals who are selected are just like the ones who are not selected. In the above example. all the 200 sampling units of the population got an equal chance of being included in the sample of 30 units and hence the sample, sO drawn, is a random sample. So. the lottery method always gives us random samples.

However, the lottery method will not give a random sample in the following cases:

  • If the slips are not made of identical size and it is possible to identify the names or numbers on the slips.
  • If same name or number is written on more than one slip or if some name or number is missed out.

1st PUC Economics Model Question Paper 6 with Answers

Question 32.
Calculate the correlation coefficient between X and Y and comment on their relationship.
1st PUC Economics Model Question Paper 6 with Answers 1
Answer:
1st PUC Economics Model Question Paper 6 with Answers 6
1st PUC Economics Model Question Paper 6 with Answers 7
Comment: There is no linear relation between X and Y.

Question 33.
Write a note on SENSEX.
Answer:
Sensex is the short form for the of Bombay Stock Exchange Sensitive Index with 1978-79 as base. The value of the Sensex is with reference to this period. It is the benchmark index for the Indian stock market, It consists of3O stocks which represent 13 sectors of the economy and the companies listed arc leaders in their respective industries. 1f the Sensex rises, it indicates that the market is doing cll and investors expect better earnings from companies. It also indicates growing confidence of investors in the basic health of the economy.

Further, the sensitive index is a market capitalization of weighted index of sample of large. well established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collective consciousness of investors. This index is idely used to measure the performance of the Indian stock market. It is the pulse of the Indian capital market.

Question 34.
The yield of wheat per acre for ten districts of a state is as under
1st PUC Economics Model Question Paper 6 with Answers 2
Calculate mean deviation from mean
Answer:
Calculation of mean deviation mean:
1st PUC Economics Model Question Paper 6 with Answers 3

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
What do you understand by the ‘drain of Indian wealth’ during the colonial period?
Answer:
The most important feature of indias foreign trade during British rule was the generation of a large export surplus. That means Indias exports exceeded its imports. it resulted in a disadvantage to the country is economy.

The essential commodities were not made available to Indians as they were exported to Britain in large quantities ignoring domestic needs.

The export surplus (value of exports being greater than the value of imports) was used to make payments for the expenses incurred by an office set up by the colonial government in Britain. expenses on war, again fought by the British Government and the import of invisible items. This is known as Drain of Indian eaith.

Question 36.
Write a note on WTO.
Answer:
The World Trade Organisation was founded in 1995 as the successor organization to the General
Agreement on Trade and Tariff which was established in 1948

The main objectives of WTO are as follows:

  • To establish a rule-based trading system in which nations cannot place arbitrary restrictions
    on trade
  • To enlarge production and trade of services
  • To ensure optimum utilization of world resources
  • To protect the environment.

The various WTO agreements cover trade in goods and services to facilitate international trade i.e. both bilateral and multilateral, through the removal of tariff and non-tariff barriers and providing greater market access to all the member countries.

India. being a founder member, ha been in the mainframe in framing fair global rules, regulations, and safeguards and advocating the interests of the developing world. India has kept its commitments towards liberalization of trade, made in the VTO, by removing quantitative restrictions on imports and reducing tariff rates.

But, some economists argue that the usefulness of WTO to India is not much when compared to developed countries. The major portions of benefits are enjoyed by the rich countries. They also say that while developed countries file complaints about agricultural subsidies given in their countries, developing countries feel cheated as they are forced to open up their markets for developed countries but are not allowed to access the markets of developed countries, which is totally unfair to Indian producers.

1st PUC Economics Model Question Paper 6 with Answers

Question 37.
What do you mean by a growth-oriented approach to poverty reduction? Why it is not successful in India?
Answer:
The growth-oriented approach is based on the expectation that the effects of economic growth i.e. the rapid increase in gross domestic product and per Capita Income, would spread to all sections of the society and vi1l trickle down to the poor sections also.

The growth-oriented approach to reduce poverty was not successful in India because of the following reasons:
(a) It was felt that the rapid industrialization and green revolution would benefit the underdeveloped regions and the more backward sections of the community. But, the overall growth and growth of agriculture and industry have not been impressive.
(b) Population growth has resulted in a very low growth in per capita incomes.
(c) The gap between poor and rich has actually widened.
(d) The green revolution increased the disparities regionally and that between large and small farmers.
(e) There was unwillingness and inability to redistribute land.
(f) Economists say that the benefits of economic growth have not trickled down to the poor.

Question 38.
Write a short note on alternative markets.
Answer:
The examples for emerging alternate marketing channels are as follows:

  • Farmers directly sell their agricultural produce to consumers. Example: Apni Mandi in Punjab, Haryana. and Rajasthan, Rvthu Bazars (vegetables and fruits markets) in Andhra Pradesh. Uzhavar Sandhai – (a farmers market) in TamilNadu.
  • Agricultural contracts several domestic and multinational companies entering agreements with Indian farmers in which farmers are encouraged to grow farm products (vegetables and fruits) of desired quality by providing them with not only seeds and other inputs but also assured procurement of the produce at predecided prices.

The main benefits of alternative agricultural marketing channels arc:

  • The fanners get seeds and other agricultural inputs
  • Farmers are assured of procurement of agricultural products at predecided prices
  • Help in reducing price risk of farmers
  • Expansion of markets for farm products in India and abroad.

Question 39.
Discuss the two types of rural unemployment.
Answer:
The following are the two types of rural employment.
(a) Disguised unemployment: It is that type of unemployment where we can come across excess number of workers engaged in some work, but actually less number of workers are required. For instance, suppose a farmer has four acres of land and he actually needs only two workers and half to carry out various operations on his farm in a year. but if he employs five workers and his family members such as his wife and children, this situation is called disguised unemployment.

(b) Seasonal unemployment: ¡t is that unemployment where the rural people get employment only during a particular season. We havè noticed that many people migrate to urban areas, pick up a job and stay there for some time, but come back to their home villages as soon as the rainy season begins. This is because work in agriculture is seasonal; there are no many employment opportunities in the village for all the months in a year. When there ¡s no work to do on farms, people go to urban areas and look for temporary jobs. This is one of the instances of seasonal unemployment.

1st PUC Economics Model Question Paper 6 with Answers

Question 40.
Write a short note on power in India.
Answer:
Energy is one of the basic infrastructures which is very essential for the economic development of a country. It is indispensable for industries, used on a large scale in agriculture and related areas like production and transportation of fertilizers, pesticides, and farm equipment. It is required in houses for cooking, household lighting, and heating. The sources of energy can be classified as follows.

(a) Commercial sources of energy and Non-commercial sources of energy:
The commercial sources of energy arc the energy sources which arc bought and sold. Examples, coal, petroleum and electricity.

Non-commercial sources of energy are the sources that arc freely available in nature or forest. Example. firewood. agricultural waste and dried dung.

(b) Conventional and non-conventional energy sources:
The conventional sources of energy are the traditional sources of energy used for a long period of time. They consist of coal, petroleum. electricity. firewood. agricultural waste, etc.

The non-conventional sources of energy are modern sources of energy which include solar energy, wind energy and tidal power. Being a tropical country. India has almost unlimited potential for producing these types of energy. if suitable cost-effective techniques are adopted.

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
Draw a table and mark its parts.
Answer:
1st PUC Economics Model Question Paper 6 with Answers 8

Question 42.
Calculate Q1, Q2, and Q3 from the following data.
22, 26, 14, 30, 18, 11, 35, 41, 12, 32.
Answer:
1st PUC Economics Model Question Paper 6 with Answers 9
Calculation of Q1:
Q1 = Size of \(\left(\frac{\mathrm{N}+1}{2}\right)^{th}\) item
Q1 = Size of \(\left(\frac{10+1}{4}\right)^{th}\) item
Q1 = Size of \(\left(\frac{11}{4}\right)^{\mathrm{th}}\) item
Q1 = Size of 2.75th item
= 2nd item + 0.75 (3rd item – 2nd item)
= 12 + 0.75 (14 – 12)
= 12 + 0.75 (2)
= 12 + 1.5
Q1 = 13.5

Calculation of Q3:
Q3 = Size of \(\frac{3(\mathrm{~N}+1)}{4}\) item
Q3 = Size of \(\frac{3(10+1)}{4}\) item
Q3 = Size of \(\left(\frac{3(11)}{4}\right)^{\mathbb{th}}\) item
Q3 = Size of \(\left(\frac{33}{4}\right)^{th}\) item
Q3 = Size of 825th item
Q3 = 8th item + 0.25 (9th item – 8th item)
Q3 = 32 + 0.25 (35 – 32)
= 32 + 0.25 (3) = 32 + 0.75
Q3 = 32.751

1st PUC Economics Model Question Paper 6 with Answers

Question 43.
The yield of Rice per acre for ten districts of a state are as under
1st PUC Economics Model Question Paper 6 with Answers 4
Calculate standard deviation and coefficient of variation.
Answer:
1st PUC Economics Model Question Paper 6 with Answers 5
CV = \(\frac{\sigma}{\bar{X}}\) × 100 = \(\frac{7.16}{19.5}\) × 100 = 36.717

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Explain the status of India’s agriculture during British rule.
Answer:
Indian Economy under British rule remained agrarian. About 85% of the countrys population lived mostly in villages and derived their livelihood directly or indirectly from agriculture. But, the agricultural sector continued to experience stagnation.

The agricultural productivity was very low though the area of cultivation expanded. The main reason was the land settlement system introduced by the colonial government. Under the zamindari system which was implemented in the then Bengal presidency comprising parts of India’s present-day eastern states. the profit accruing out of the agriculture sector went to the zamindars instead of the cultivators. A considerable number of zamindars and colonial governments did not improve the condition of agriculture. The main interest of the zamindars was only to collect rent regardless of the economic condition of the cultivators.

The terms of revenue settlement with zamindars made the zamindars to be strict in collecting land revenue from the actual cultivators even at the time of drought. This as mainly because. the zamindars were given dates for depositing specified sums of revenue, failing which the zamindars were to lose their rights.

Apart from these. low levels of technology. The lack of irrigation facilities and negligible use of fertilizers were also equally responsible for bad status of agriculture during British rule.

Question 45.
Briefly explain the important areas of Liberalisation.
Answer:
Liberalization was one of the reforms of New Economic Policy of 1991, It was introduced to put an end to the restrictions and open up various sectors of the economy. The following are the important areas of liberalization:

(a) Deregulation of industrial sector: The liberalization policy removed man restrictions enforced on industnal sector. Industrial’Iicensing was abolished for almost all but product categories like alcohol, cigarettes, hazardous chemicals, industrial explosives, electronics, aerospace and drugs and pharmaceuticals. The only industries which are not reserved for the public sector are defence equipment, atomic energy generation and railway transport. Many goods produced by the small scale industries have now been deserved,

(b) Financial sector reforms: The financial sector consists of financial institutions like commercial banks, investment banks, stock exchange operations and foreign exchange market.

The financial sector in India is regulated by the Reserve Bank of India. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates. nature of lending to various sectors, etc.

The major objective of financial sector reforms is to reduce the role of RBI from regulator to facilitator of financial sector. That means, the financial sector may be allowed to take decisions on man matters independent of RBI.

The financial sector reform policies led to the establishment of private sector banks both Indian and foreign. The foreign investment limit in banks was raised to around 50%. The banks which fulfil certain conditions have been given the freedom to set up new branches without the approval of the RBI. Foreign institutional investors (FII) like merchant bankers, mutual funds and pension funds arc now allowed to invest in Indian financial markets.

(c) Tax reforms: These are the reforms that are concerned with the government’s taxation and public expenditure policies which are collectively known as its fiscal policy. There are two types of taxes, direct and indirect.

Since 1991, there has been a continuous reduction in the taxes on individual incomes as it was felt that high rates of income tax were an important reason for tax evasion. It is now widely accepted that moderate rates of income tax encourage savings and voluntary disclosure of income.

1st PUC Economics Model Question Paper 6 with Answers

Question 46.
Explain the causes of poverty.
Answer:
The major causes for poverty in India are as follows:
(a) Unemployment: Poverty is closely related to the nature of employment, unemployment, and underemployment. A large section of urban and rural poor are unable to get proper income generating employment opportunities The industrialization has failed to absorb the unemployed youths in India. Casual laborers are most vulnerable as the’ do not have job security, no assets and have limited skills.

(b) Inflation: A continuous rise in the price of food grains and other essential commodities has intensified the poverty of the poor. The purchasing power of poor people is deteriorating due to inflationary situations in the country.

(c) Unequal distribution of income and wealth: The unequal distribution of income and assets has also led to the persistence of poverty in India. There is ide gap between the rich and the poor. where the poor are unable to get opportunities to come Out of poverty line.

(d) Negative impact of British rule Indian economy: During the British Nile there was deindustrialization. The import of cotton textiles displaced many Lndian producers. More than 70% of Indians were engaged in agriculture throughout British period. As the British made India a market for their finished products. Indian merchants incurred huge losses due to their inability to compete with the low priced products of Britain imported to India. Our natural resources were overexploited by the British and foodgrains were exported. Many Indians died due to famine and hunger. So, this had continued even after independence.

(e) Unequal distribution of income and wealth: There is a large scale unequal distribution of income and wealth in India. The wealth is concentrated in the hands of a few individuals. Though the Government had tried to redistribute land among the landless agricultural labourers to reduce the magnitude of poverty, it was successful only to a limited extent as large sections of agricultural workers were not able to cultivate small land holds duc to shortage of money or lack of skills to make the Land productive and the land holdings were too small.

(f) Lack of skills and knowledge: Most of the people who belong to backward communities are not able to participate in the emerging employment opportunities in different sectors of urban and rural economy due to their ignorance and illiteracy. Many of the schedule caste and schedule tribe people do not have necessary knowledge and skills in this regard.

(g) Excess population: The access population in India is also one of the causes for poverty. The supply of labourers is more than demand for labour. The employment generation is than the growth rate of population in India. The government is struggling hard to provide basic amenities due to rapid growth of population in India.

(h) Other causes for poverty are:

  • Social and political inequality
  • Social exclusion
  • Indebtedness (excessive borrowings of loans)
  • Low capital formation
  • Lack of infrastructure
  • Lack of effective demand
  • Inefficient and corrupt administration.

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
Suppose you are a research student and you are asked to conduct a sample survey about the mid-day meals program in schools. Prepare a good questionnaire to support your survey.

Questions Responses (Tick the appropriate one)
1. Your name
2. Your age
3. Gender Male/Female
4. School:
5. How many members in your family are working?
6. Monthly family income
7. Resident of Urban/Rural
8. Where do you eat lunch every day? a) House b) Hotel c) School d) Other
9. Do you like eating at schools? Yes /No
10. How often, like the food served at ‘ your school: (a) every day
(b) Once in 4 days
(c) Once in 2 days
(d) None
11. Do you get tasty food? Yes/No
12. What made s ou to choose school food? (a) Tasty
(b) Free of cost
(c) Good quality
(d) None
13. Are you satisfied with the taste? Yes/No
14. Is the supply of food helpful? Yes /No
15. Do you examine quality of food? Yes/No
16. Quality of rice used (a) Good
(b) Excellent
(c) Better
(d) Loss-quality
17. Are vegetables used in every days food? Yes /No
18. Do you expect more food? Yes /No
19. The quality of vegetables, pulses used are (a) Good
(b) Excellent
(c) Very good
(d) None
20. Are you coming to have lunch in school? Yes/No
21. Do you think there should be an improvement in mid-day meals program Yes/No

Question 48.
Suppose you are a resident of a village, suggest a few measures it tackle the problem of poverty.
Answer:
If support in implementing the fo11oving programs successfully. we can easily eradicate poverty:

  • Swarnajayanti Gram Swarozgar Yojana (SGSY)
  • Swarnajayanthi Shahari Rozgar Yojana (SJSRY)
  • Pradhana Manthri RozgarYojana (PMRY)
  • National Food for Work Programme (NFWP)
  • Sampooma Gramecn Rozgar Yoj ana ( SGRY)
  • Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGP)
  • Public Distribution System (PDS)
  • Integrated Child Development Scheme (ICDS)
  • Mid-day Meals Scheme
  • Pradhana Manthri Gram Sadak Yojana
  • Indira Awas Yolana
  • Vaimiki Ambedkar Awas Yoj ana.

1st PUC Economics Model Question Paper 6 with Answers

Question 49.
Name any ten power generating units in India.
Answer:

  • Sharavathi Hydro Power Station
  • Kalindi Project
  • Shivanasainudrarn Hydro Power Station
  • Bhakra-Nangal Hydel Power Project
  • Kosi project
  • Raichur Thermal Power Station
  • Kaiga Atomic Power Station
  • Ranaprathapsagar Power Station
  • Tarapur Power Sstation
  • Kalapakkam Power Station
  • Tungabhadra Hyde! Power Station.

1st PUC Economics Model Question Paper 5 with Answers

Students can Download 1st PUC Economics Model Question Paper 5 with Answers, Karnataka 1st PUC Economics Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus and score more marks in your examinations.

Karnataka 1st PUC Economics Model Question Paper 5 with Answers

Time: 3.15 Hours
Max Marks: 100

Instructions:

  1. Write the question numbers legibly in the margin.
  2. Answer for a question should be continuous.

Section – A

I. Choose the correct answer: ( 1 × 5 = 5 )

Question 1.
Which of the following represent median?
(a) Q1
(b) Q4
(c)Q3
(d)Q2
Answer:
(d) Q2

Question 2.
Ogives can be helpful ¡n locating graphically the
(a) Mode
(b) Median
(c) Mean
(d) None of these
Answer:
(b) Median

Question 3.
Railway transport introduced in India in the year
(a) 1835
(b) 1776
(c) 1853
(d) 1850
Answer:
(d) 1850

Question 4.
It is an agricultural allied activity.
(a) Poultry
(b) Cottage industry
(e) Tourism
(d) Small industry
Answer:
(a) Poultry

1st PUC Economics Model Question Paper 5 with Answers

Question 5.
The state in India popularly known as bGodis Own Country”.
(a) Kerala
(b) Goa
(c) Andhra Pradesh
(d) Kamataka
Answer:
(a) Kerala

II. Fill in the blanks: ( 1 × 5 = 5 )

Question 6.
Data collected by the investigator is called _____________
Answer:
enumerator

Question 7.
Inflation affects the_________ of common people.
Answer:
cost of living

Question 8.
WTO was established in the year____________.
Answer:
1995

Question 9.
Investment on education is considered as one of the main sources of __________.
Answer:
human capital

Question 10.
_____________ are renewable resource.
Answer:
Trees and fish

III. Match the following: ( 1 × 5 = 5 )

Question 11.

A B
1. Prime Minister (a) Air pollution
2. Median (b) Milk production
3. Census (c) Chairman of NITI Ayog
4. White revolution (d) Covers every individual
5. Industrialisation (e) Positional value

Answer:
1-c,
2-e
3-d
4-b
5-a

IV. Answer the following questions in a word sentence: ( 1 × 5 = 5 )

Question 12.
How do range and quartile deviation measure the dispersion?
Answer:
Range and quartile deviation measure the dispersion by calculating the spread within which the values lie.

Question 13.
Mention the last step in developing a project.
Answer:
The last step in developing a project is to draw meaningful conclusions after analyzing and interpreting the results.

Question 14.
Expand GDP.
Answer:
Gross domestic product.

1st PUC Economics Model Question Paper 5 with Answers

Question 15.
What is agricultural marketing?
Answer:
It refers to the process of assembling, storing, processing, grading, packing and distributing the agricultural products throughout the country.

Question 16.
What type of economic system is followed in India?
Answer:
Mixed economic system is being followed in India.

Section – B

V. Answer any four of the following questions in four sentence each. ( 2 × 4 = 8 )

Question 17.
Write the differences between census and sample survey.
Answer:

Census

Sample Survey

It includes every element of the population Here a representative sample is taken for survey
There may not be accurate information Provide reasonably reliable and accurate information
It is expensive It is cheap and cost effective
It is time consuming It takes less time

Question 18.
Mention the types of classification of data.
Answer:
The types of classification of data are:
(a) Quantitative classification
(b) Qualitative classification
(c) Chronological classification
(d) Spatial classification.

1st PUC Economics Model Question Paper 5 with Answers

Question 19.
Whether the data represented by a component bar diagram can also be represented by a pie chart? Explain.
Answer:
A pie diagram is also a component diagram, but unlike a bar diagram, here it is a circle whose area is proportionally divided among the components it represents. So the data represented by a component bar diagram can also be represented by a pie chart. The only requirement being that absolute values of the components have to converted into percentages before can be used for a pie diagram.

Question 20.
Calculate the value of the mean from the following figures
X: 5, 7, 9, 12, 11, 8, 7, 15, 25.
Answer:
x = \(\frac{\Sigma X}{N}=\frac{99}{9}\) = 11

Question 21.
Interpret the values of ‘r’ as 1, -1 and 0.
Answer:
When r = 1, it shows there is perfect positive correlation between two variables
When r = 1, it shows that there is perfect negative correlation between two variables When r = 0, it shows that there is no relationship between the two variables.

Question 22.
Mention the name of any four statistical tools.
Answer:
The most important statistical tools are the measures of central tendency, dispersion, correlation, bar diagrams, pie chart, histograms, etc.

VI. Answer any five of the following questions in four sentence each. ( 2 × 5 = 10 )

Question 23.
List out the important export goods of India before Independence.
Answer:
The important export goods of India before independence were raw silk, cotton, wool, sugar, indigo, jute, etc.

1st PUC Economics Model Question Paper 5 with Answers

Question 24.
What are the social factors that trigger and perpetuate poverty?
Answer:
The social factors that trigger and perpetuate poverty are as follows:

  • Illiteracy
  • 111 health
  • Lack of access to resources
  • Discrimination or lack of civil and political freedoms.

Question 25.
What factors contribute to human capital formation?
Answer:
The factors which contribute to human capital formation are as follows:

  • Expenditure on education
  • Expenditure on health
  • Expenditure on training
  • Expenditure on information
  • Migration.

Question 26.
How moneylenders exploited the rural farmers?
Answer:
Moneylenders and traders exploited small and marginal farmers and landless labourers by:

  • Charging very high rate of interest
  • Manipulating the accounts to keep them in debt trap
  • Trespassing the agricultural land by misusing their illiteracy
  • Making debtors into bonded labourers.

Question 27.
Name any four kinds of unemployment.
Answer:
The four kinds of unemployment are as follows:

  • Open unemployment
  • Disguised unemployment
  • Seasonal unemployment
  • Technical unemployment
  • Frictional unemployment.

1st PUC Economics Model Question Paper 5 with Answers

Question 28.
How infrastructure facilities have been classified?
Answer:

  • Infrastructural facilities are classified into two categories viz., economic infrastructure and social infrastructure.
  • The economic infrastructural facilities are associated with energy, transportation, communica-tion, banking, insurance, etc. which directly contribute towards economic development.
  • The social infrastructural facilities are associated with education, health, housing, sanitation, drinking water, which indirectly contribute for economic development.

Question 29.
List out any four biotic factors of environment.
Answer:
The biotic factors of environment are:

  • Birds
  • Animals
  • Plants
  • Forests.

Section – C

VII. Answer any three of the following questions in twelve sentence each. ( 3 × 4 = 12 )

Question 30.
‘Scarcity is the root of all economic problems’. Explain the statement.
Answer:
It is true that the scarcity is the root of all economic problems. If there had been no scarcity there would have been no economic problem. This would have not necessitated the study of economics.

In our daily life. we face various forms of scarcity. The queues at the railway booking counters. overcrowded buscs, heavy traffic on roads, the rush to get a ticket to watch a movie of a popular film actor or actress. arc all the manifestations of scarcity. We face scarcity because the things that satisfy our wants are limited in availability.

Further, the resources which the producers have are limited and also have alternative uses.
For instance, take the case of food that we eat everyday. It satisfies our want of nourishment. Farmers employed in agriculture grow crops that produce our food. At any point of time. the resources in agriculture like land. labour, water, chemical fertilizers, etc. all these resources have alternative uses. The same resources can be used in the production of non-food crops. Thus, alternative uses of resources give rise to the problem of choice between different commodities that can be produced b those resources.

Question 31.
Briefly explain the sampling errors.
Answer:
Random sampling is where the individual units from the population (samples) are selected at random. For instance, the government wants to determine the impact of the rise in petrol price on the household budget of particular locality. For this. a representative (random) sample of 30 household has to be taken and studied. The naines of all the 300 households of that area are written on pieces of paper and mixed well, then 30 names to be interviewed are selected one be one.

In the random sampling. ever indi idLial lias an equal chance of being selected and the individuals who are selected are just like the ones ho are not selected. In the aboe example. all the 300 sampling units of the population got an equal chance of being included in the sample of 30 units and hence the sample. such drawn, is a random sample. This is also called lottery method, The same could be done using a random number table also

1st PUC Economics Model Question Paper 5 with Answers

Question 32.
Calculate the correlation coefficient between X and Y and comment on their relationship.
1st PUC Economics Model Question Paper 5 with Answers 1
Answer:
1st PUC Economics Model Question Paper 5 with Answers 2
There is a perfect positive corelation betveen the values of X and Y.

Question 33.
Explain the features of index number.
Answer:
The following are the characteristics or features of index numbers:
(a) Index numbers are specialized averages: These are ahavs considered as specialized averages. An average is a single figure representing a group of figures. To obtain an average. the items must be comparable. Index numbers are also one type of averages which show in a single figure. the change in two or more series of different items that can be expressed in different units

(b) Index numbers measure the net change in a group of related variables: As index numbers are also averages. the describe in one single numerical value i.e. increase or decrease in a group of related variables under study. The group of variables may be prices of set of commodities. the volume of production in different sectors. etc.

(c) Index numbers measure the effect of changes over a period of time: Index numbers are most mostly widely used for measuring changes over a period of time. For example. we can compare the agricultural production, industrial production, imports, exports. wages. etc. during two different periods.

(d) Index numbers are expressed in percentages: The changes in magnitude are expressed in terms of percentages which are independent of the units of measurement. This facilitates the comparison of two or more index numbers in different situations.

(e) Index numbers measure and permit comparison of the prices of certain goods: Quantity index numbers measure the changes in the phsical volume of production, construction or employment.

Question 34.
The yield of Rice per acre for ten districts of a state are as under
1st PUC Economics Model Question Paper 5 with Answers 3
Calculate mean deviation from mean
Answer:
1st PUC Economics Model Question Paper 5 with Answers 4
1st PUC Economics Model Question Paper 5 with Answers 5

VIII. Answer any four of the following questions in twelve sentence each: ( 4 × 4 = 16 )

Question 35.
What do you understand by the ‘drain of Indian wealth’ during the colonial period?
Answer:
The most important feature of Indias foreign trade during British rule was the generation of a large export surplus. That means Indias exports exceeded its imports. It resulted in a disadvantage to the country canon

The essential commodities were not made available to Indians as they were exported to Britain in large quantities ignoring domestic needs.

The export surplus (value of exports being greater than the value of imports) was used to make payments for the expenses incurred by an office set up by the colonial government in Britain. expenses on war, again fought by the British Government and the import of invisible items. This is known as Drain of Indian ea1th.

Question 36.
Growth with equity is one of the objectives of planning. Justify.
Answer:
Growth with equity is one of the objecties of planning. A country can have high economic growth. the most modern technology deeloped with in the country itself and still have most of its people living in poverty. It is important to ensure that the benefits of economic prosperity reach the poorer sections as well instead of being enjoyed only by the rich. So. in addition to growth. modernization and self-reliance, equity is also important.

Every Indian should be able to meet his or her basic needs such as food, a decent house, education and health care and so inequality in the distribution of wealth should be reduced,

Question 37.
Briefly explain the background of economic reforms in India.
Answer:
There was a financial crisis which persisted since 1980. Wc know that to introduce various policies, the government has to generate funds from various sources like taxation, running public sector enterprises etc. When the expenditure is more than the income, the government takes loans to balance the deficit from banks and also from people within the country and from international banks,

The various development policies require huge finance. But there was scarcity of funds. Even though the revenues were very low, the government had to overshoot its revenue to meet the challenges like unemployment, poverty and population explosion. The continued spending on development programmes of the government did not generate additional revenue. At the same time, the government could not generate funds internally. When the government was spending a large share of its income on areas which do not provide immediate returns, there was a need to use the rest of its revenue in a highly efficient manner, The incomc from public sector undertakings was also not very high to meet the growing expenditure.

Further, the foreign exchange. borrowed from other countries and international banks was spent on meeting consumption needs, No sincere efforts were made to reduce expenditure and to increase our exports.

During late 1980’s government expenditure exceeded its income. Prices of many essential goods increased. Imports grew at a very large extent. Foreign exchange reserves declined considerably and the same fall short to finance our imports for more than two weeks, There was shortage of funds even to pay interest to international lenders and at the same time no country or international bank was ready to lend any more to India.

At this situation. India approached the International Bank for Reconstruction and Development and International Monetary Fund and reccvcd seven billion dollars as loan to manage the crisis.

To avail loans, these international banks expected India to liberalise and open up its economy by removing restrictions on the private sector, reduce the role of go’ernnient in many areas and remove trade restrictions between India and other countries.

India had to agree to these conditions of IBRD and IMF and announced the new economic policy which included liberalization, privatization and globalization.

1st PUC Economics Model Question Paper 5 with Answers

Question 38.
Explain the drawbacks of agricultural market.
Answer:
Agricultural marketing is a process that involves the assembling, storage, processing, transportation. packaging, grading and distr4bution of different agricultural commodities across the countr. The major drawbacks of agriculture marketing in India are as follows:

  • Long chain of middlemen taking awa the profit of farmers
  • No proper storage facilities to protect the agricultural products
  • Faulty methods of weighing/measuring agricultural crops
  • Manipulation of accounts
  • Farmers are forced to sell their products at low prices due to lack of information.

Question 39.
Briefly explain the state of infrastructure in rural India.
Answer:
Majority of people in India live in rural areas, In spito of so much of technological progress in the world, rural women are still using bio-fuels like agricultural waste, dried dung and fire wood to meet their eneigv requirement. Thc’ have to walk long distances to bring fuel, water and other basic needs.

According to the latest estimates. in rural India only 56% of households have electricity connection and 43% still use kerosene. About 90% of the rural households use bio- fuels for cooking. Tap water availability is limited to only 24 % rural households. About 76 % of the population drinks water from open sources like wells. tanks. ponds, lakes, rivers, canals etc. Access to improved sanitation in rural areas only 20 %.

Question 40.
Write a note on the Great Leap Forward campaign of China.
Answer:
The Great Leap Forward’was initiated in 1958 by the Communist Party of Peoples’ Republic of China. After the establishment of people’s Republic of China under one party rule, all the critical sectors of the economy, enterprises, and lands owned and operated by the individuals were brought under government control.

The Great Leap Forward campaign aimed at industrializing the country on a massive scale. People were encouraged to set up industries in their backyards. In rural areas, communes were started. Under commune system, people collectively cultivated lands. ¡n 1958, there were 26,000 communes covering almost all the farm population.

The Great Leap Forward campaign met with many problems. A severe drought caused havoc in China killing about 30 million people. When Russia had conflicts with China, it withdrew its professionals who had earlier been sent to China to help in the industrialization process.

Section – D

IX. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 41.
Draw an arithmetic line graph using following data.
Value of import and export of India (in 100 crores).
Answer:
1st PUC Economics Model Question Paper 5 with Answers 7
1st PUC Economics Model Question Paper 5 with Answers 8

Question 42.
Calculate Q1, Q2, and Q3 from the following data
15, 21, 26, 30, 40, 45, 50, 54, 60, 65, 70.
Answer:
1st PUC Economics Model Question Paper 5 with Answers 9
1st PUC Economics Model Question Paper 5 with Answers 10
1st PUC Economics Model Question Paper 5 with Answers 11

Question 43.
The yield of wheat per acre for ten districts of a state are as under
1st PUC Economics Model Question Paper 5 with Answers 6
Calculate Standard deviation and coefficient of variation.
Answer:
Standard Deviation (actual mean method)
1st PUC Economics Model Question Paper 5 with Answers 12

1st PUC Economics Model Question Paper 5 with Answers

X. Answer any two of the following questions in about twenty sentence each. ( 2 × 6 = 12 )

Question 44.
Explain the goals of five-year plans.
Answer:
The main goals ofthc five ‘ear plans are Growth, modernization, self-reliance and equity. They can be illustrated as follows:
(a) Growth: It refers to the increase in the gross domestic product. It also implies that the increase in the country’s capacity to produce the output of goods and services within the country. It includes larger stock of productive capital or a larger size of supporting services like transport and banking or an increase in the efficiency of productive capital land services.

A good indicator of economic growth, in the language of economics, is a steady increase in the gross domestic product (GDP). The GDP is the market value of all the goods and services produced in the country during a year. The GDP of a country is derived from the different sectors of the economy. namely agricultural sector, the industrial sector and the service sector.

(b) Modernization: Adoption of new technology is called as modernization. To increase the production of goods and services producers have to adopt new technologies. For example, a farmer can increase the output on his farm by using new seed varieties instead of using the old ones. Similarly, a factory can increase output by using a new types of machinenes.

Modernisation does not refer only to the use of new technology but also to changes in
social outlook such as the recognition that women should have the same rights as men.
In a traditional society, women are supposed to remain at home while men work.

(c) Self-reliance: The first seven five year plans gave importance to self reliance. Self reliance refers to avoiding imports of those goods which could be produced in India itself. This policy was considered a necessity in order to reduce our dependence on foreign countries, especially for food. It is a well-known fact that, people who were recently freed from foreign domination should give importance to selfrcliance.

(d) Equity: Growth withequity is one of the objectives of planning. A country can have high economic growth, the most modern technology developed with in the country itself but still have most of its people living in poverty It is important to ensure that the benefits of economic prosperity reach the poorer sections as well instead of being enjoyed only by the rich. So. in addition to growth. modernization and selfreliance. equity is also important.

Every Indian should be able to meet his or her basic needs such as food, a decent house, education and health care and so inequality in the distribution of wealth should be reduced.

Question 45.
Explain the causes of poverty.
Answer:
The major causes for poverty in India are as follows:
(a) Unemployment: Poverty is closely related to the nature of employment. unemployment and underemployment. A large section of urban and rural poor are unable to get proper income-generating employment opportunities. Industrialization has failed to absorb the unemployed youths in India. Casual labourers are most vulnerable as the’ do not have job security, no assets and have limited skills.

(b) Lnflation: A continuous rise in the price of food grains and other essential commodities has intensified the poverty of the poor. The purchasing power of poor people is deteriorating due to inflationary situations in the country.

(c) Unequal distribution of income and wealth: The unequal distribution of income and assets has also led to the persistence of poverty in India. There is wide gap between the rich and the poor, where the poor are unable to get opportunities to come out of poverty line.

1st PUC Economics Model Question Paper 5 with Answers

Question 46.
List out the benefits of organic farming.
Answer:
Organic farming is that fanning which relies on crop rotation, green manure, compost and biological pest for growing crops. It is a whole system of farming that restores, maintains and enhances the ecological balance.

The main benefits of organic farming are as follows:

  • It offers a means to substitute costlier agricultural inputs (chemical fertilizers, pesticides) with cheaper ones
  • It generates income through exports
  • It contributes to ecological balance
  • Provide healthy and chemicals free food
  • Organic farming contributes to higher production and productivity
  • It enhances the quality and quantity of agricultural products
  • Provide alternative employment opportunities to rural people
  • Helps in the prevention of deterioration infertility and the conservation of soil.

XI. Answer any two of the following project oriented questions. ( 2 × 5 = 10 )

Question 47.
On the basis of data you have collected regarding participation of women in your locality in the below mentioned categories construct a pie chart.
(a) Self-employed
(b) Regular salaried employees
(c) Casual wage labourers. .
Answer:
As per the data collected regarding participation ofomcn in our 1oca1it. the following table is generated

Categories Participation
Self-employed 50
Regular salaried 20
Casual labourers 30

1st PUC Economics Model Question Paper 5 with Answers 13
1st PUC Economics Model Question Paper 5 with Answers 14

Question 48.
Give appropriate examples for the following.

Name of the product

Name of foreign company

Biscuit
Shoes
Computers
Cars

Answer:

Name of the product

Name of foreign company

Biscuit Hide and Seek
Shoes Nike/Liberty
Computers Dell
Cars Toyoto

The above-mentioned companies have come to India after 1991 new economic policy.

1st PUC Economics Model Question Paper 5 with Answers

Question 49.
Identify the formal and informal workers in the following list.
(a) Petty shop owner
(b) Handloorn weaver
(C) SBI cashier
(d) A street vendor
(e) Government hospital nurse
(f) Government primary school teacher
(g) Tailor
(h) Revenue inspector
(I) Police
(j) Agricultural labourers
Answer:
(a) Petty shop owner – informal worker
(b) Hand loom weaver – informal worker
(c) SBI cashier – formal worker
(d) A Street vendor – infonnal worker
(e) Government hospital nurse – formal worker
(f) Government primary school teacher – formal worker
(g) Tailor – informal worker
(h) Revenue inspector – formal worker
(I) Police – formal worker
(j) Agricultural laborers – informal workers.

1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Students can Download 1st PUC Business Studies Previous Year Question Paper March 2018 (South), Karnataka 1st PUC Business Studies Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus.

Karnataka 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

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 Extractive Industry.
Answer:
Agriculture, mining, fishing, forestry, hunting, fruit gathering, etc. are examples of extractive industries.

Question 2.
Kartha is a Joint Hindu Family business has
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability
Answer:
(b) Unlimited liability

Question 3.
Name the two sectors working in the Indian Economy.
Answer:
The two sectors working in the Indian economy are:
(a) Public sector
(b) Private sector.

Question 4.
State any one type of Bank account.
Answer:
Current account.

Question 5.
What is e-Business?
Answer:
E-commerce is conducting the activities of industry, trade, and commerce using computer networks, i.e. internet.

Question 6.
Carbon Monoxide emitted by automobiles directly contributes to
(a) Water pollution
(b) Noise pollution
(c) Land pollution
(d) Air pollution
Answer:
(d) Air pollution

Question 7.
How many members have to sign a Memorandum of Association in the case of a public company.
Answer:
7 members have to sign a memorandum of association in case of a public company.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 8.
ADRs are issued in
(a) Canada
(b) China
(c) India
(d) the USA
Answer:
(d) the USA

Question 9.
Expand: WTO
Answer:
World Trade Organisation.

Question 10.
Which of the following is not a fixed shop large retailer?
(a) General Stores
(b) Chain Stores
(c) Mail-Order Houses
(d) Super Markets
Answer:
(a) General Stores

Question 11.
Name any one mode of entering into international business.
Answer:
Exporting and importing.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 12.
Which of the following documents is not required in export trade?
(a) Certificate of Origin
(b) Certificate of Inspection
(c) Mate’s receipt
(d) Bill of Entry
Answer:
(d) Bill of Entry

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 types of Economic activities.
Answer:
The different types of economic activities are:
(a) Business
(b) Profession
(e) Employment.

Question 14.
Who is a Nominal Partner?
Answer:
Partners who only allow the firm to use their name as a partner. They do not have any real interest in the business of the firm such partners knOwn as a nominal partner.

Question 15.
Mention any two merits of Statutory Corporations.
Answer:
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.

Limitations:
(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.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 16.
State any two examples for specialized banks.
Answer:
Foreign Exchange Bank; Industrial Banks.

Question 17.
State any two benefits of e-Business.
Answer:
Two benefits of e-business are:
(a) Global reach/access
(b) Convenience.

Question 18.
What is business ethics?
Answer:
Business ethics is defined as a set of moral standards which society expects from businessmen.

Question 19.
Name any two stages in the formation of a company.
Answer:
(a) Promotion stage.
(b) Incorporation stage.

Question 20.
Name any two internal sources of business finance.
Answer:
(a) Equity shares
(b) Retained earnings.

Question 21.
Give the meaning of village industries.
Answer:
Village industry has been defined as any industry located in a rural area that produces any goods, renders any service with or without the use of power, and in which the fixed capital investment per head or artisan or worker does not exceed Rs. 50,000.

Question 22.
What do you mean by Departmental stores?
Answer:
A Departmental Store is a large-scale retail shop where a large variety of goods are sold in a single building. The entire building is divided into a number of departments or sections. In each department, specific types of goods like stationery items, books, electronic goods, garments, jewelry, etc. are made available.

Question 23.
Write the meaning of “Licensing”.
Answer:
Licensing is a contractual arrangement in which one firm grant access to its patents, trade secrets, or technology to another firm in a foreign country for a fee called royalty.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 24.
Give the meaning to Bill of Lading.
Answer:
Bill of lading is a document wherein a shipping company gives its official receipt of the goods put on board its vessel and at the same time gives an undertaking to carry them to the port of destination.

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 the business.
Answer:
(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 valùe. If goods are produced not for the purpose of sale but say for internal consumption, it cannot be called a business activity.

Question 26.
Explain briefly any four features of Global Enterprises.
Answer:
Features:
(a) Huge capital resources: These enterprises are characterized by possessing huge financial resources and the ability to raise funds from different sources. Because of their financial strength, they are able to survive under all circumstances.

(b) Foreign collaboration: Global enterprises usually enter into agreements with Indian companies pertaining to the sale of technology, production of goods, use of brand names for the final products, etc.

(c) Advanced technology: These enterprises possess technological superiorities in their methods of production. They are able to conform to international standards and quality specifications. This leads to the industrial progress of the country.

(d) Product innovation: These enterprises are characterized by having highly sophisticated research and development departments engaged in the task of developing new products and superior designs of existing products.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 27.
Briefly explain any four functions of Warehousing.
Answer:
Usually, goods are not sold or consumed immediately after production. They are held in stock to be available as and when required. Special arrangements must be made for the storage of goods to prevent loss or damage. Warehousing helps business firms to overcome the problem of storage and facilitates the availability of goods when needed.

Functions of Warehousing
(a) Consolidation: The warehouse receives and consolidates materials/goods from different production plants and dispatches the same to a particular customer on a single transportation shipment.

(b) Break the Bulk: The warehouse divides the bulk quantity of goods received from the production plants into smaller quantities and then transported according to the requirements of clients to their places of business.

(c) Stock Piling Goods or Raw Materials which are not required immediately for sale or manufacturing are stored in warehouses to be made available to business depending on customer’s demand. This type of warehouse is also known as the storehouse of surplus goods.

(d) Value Added Services: Provision of value-added services such as in transit mixing, packaging, and labeling is also a function of modem warehousing.

(e) Price Stabilization: Warehousing performs the function of stabilizing prices by adjusting the supply of goods according to demand. Financing warehouse owners provide loans to the owners on the security of goods and further supply goods on credit terms to customers. The warehouse keepers issue a receipt when goods are kept in the warehouse. This receipt can be used as security to get loans from banks and owners. in this way, it also helps in financing.

Question 28.
Bring out any four distinctions between Traditional Business and e-Business.
Answer:
1st PUC Business Studies Previous Year Question Paper March 2018 (North) 1

Question 29.
Explain briefly any four arguments for social responsibility.
Answer:
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.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 30.
Explain briefly any four clauses of the Memorandum of Association.
Answer:
(a) Name Clause: It contains the name by which the company will be established. The approval of the proposed name is taken in advance from the Registrar of the companies.

(b) Objects Clause: it contains a detailed description of the objects and rights of the company, for which it is being established. A company can undertake only those activities which are mentioned in the objects clause of its memorandum.

(c) Capital Clause: It contains the proposed authorized capital of the company. It gives the classification of the authorized capital into various types of shares, (like equity and preference shares) with their numbers and nominal value. A company is not allowed to raise more capital than the amount mentioned as its authorized capital. However, the company is permitted to alter this clause as per the guidelines prescribed by the Companies Act.

(d) Liability Clause: ¡t contains financial limit up to which the shareholders are liable to pay off to the outsiders in the event of the company being dissolved or closed down.

Question 31.
Explain briefly any four merits of preference shares.
Answer:
Merits:
(a) Preference shares provide reasonably steady income in the form of fixed rate of return and safety of the investment.
(b) Preference shares are useful for those investors who want a fixed rate of return with comparatively low risk.
(c) It does not affect the control of equity shareholders over the management as preference shareholders don’t have voting rights.
(d) Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.
(e) Preference shareholders have a preferential right of repayment over equity shareholders in the event of liquidation of a company.

Question 32.
Write short notes on:
(a) Retained earnings
(b) Trade credit.
Answer:
Retained Earnings: A company generally does not distribute all its earnings amongst the shareholders as dividends but a portion of the net earnings may be retained in the business for use in the future this is known as retained earnings. It is a source of internal financing or self-financing or ‘plowing back of profits. The profit available for plowing back in an organization depends on many factors like net profits, dividend policy, and age of the organization.

Trade Credit: It is the credit extended by one trader to another for the purchase of goods and services. Track credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organizations as a source of short-term financing. It is granted to those customers who have a reasonable amount of financial standing and goodwill. The volume and period of credit extended depend on factors such as the reputation of the purchasing firm, the financial position of the seller, volume of purchases, past record of payment, and degree of competition in the market. Terms of trade credit may vary from one industry to another and from one person to another. A firm may also offer different credit terms to different customers.

Question 33.
Explain briefly any four problems faced by Small businesses.
Answer:
(a) Finance: The most serious problem faced by SSIs 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 havé 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 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.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 34.
Explain briefly any four services of wholesalers to Manufacturers.
Answer:
Wholesalers services to producers are:
(a) Facilitating large-scale production: Wholesalers collect small orders from a number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities. This enables the producers to undertake production on a large scale,

(b) Bearing risk: The wholesale merchants deal in goods in their own name, take delivery of the goods and keep the goods purchased in large lots in their warehouses. In the process, they bear lots of risks such as the risk of fall in prices, theft, pilferage, spoilage, fire, etc.

(c) Financial assistance: The wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payments for the goods purchased by them. To that extent, the manufacturers need not block their capital in the stocks.

(d) Expert advice: As the wholesalers are in direct contact with the retailers, they are in a position to advise the manufacturers about various aspects including customer’s tastes and preferences, market conditions, competitive activities, and the features preferred by the buyers.

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 any four merits and four demerits of the Partnership form of business.
Answer:
Merits of partnership are:
(a) Easy to. form: Like sole proprietorship, the partnership business can be formed easily without any legal formalities.
(b) More funds: In a partnership, the capital is contributed by a number of partners. This makes it possible to raise a larger amount of funds as compared to a sole proprietor and undertake ad4itional operations when needed.
(c) Sharing risks: The risks involved in running a partnership firm are shared by all the partners. This reduces the anxiety, burden, and stress on individual partners.
(d) Secrecy: A partnership firm is not legally required to publish its accounts and submit its reports. Hence it is able to maintain the confidentiality of information relating to its operations.

Demerits of partnership are:
(a) Limited capital: Since the total number of partners cannot exceed 20, the capital to be raised is always limited. It may not be possible to start a very large business in partnership form.
(b) Lack of continuity of business: A partnership firm comes to an end in the event of death, lunacy, or retirement of any partner. Even otherwise, it can discontinue its business at the will of the partners. At any time, they may take a decision to end their relationship.
(c) Lack of public confidence: There is no governmental supervision over the affairs of the business of a partnership and publishing accounts is also not necessary. Hence, the public may not have full confidence in them.
(d) Unlimited liability: The liability of each partner is not limited to the amount invested but his private property is also liable to pay the business obligations.

Question 36.
Explain briefly the features of Joint Stock Company.
Answer:
(a) Artificial person: Just like an individual, who takes birth, grows, enters into relationships, and dies, a joint-stock company takes birth, grows, enters into relationships, and dies. However, it is called an artificial person as to its birth, existence, and death are regulated by law arid it does not possess phýsical attributes like that of a normal person.

(b) Legal formation: No single indìvidtial or a group of individuals can start a business and call it a joint-stock company. A joint-stock company comes into existence only when it has been registered after completioñ of all formalities required by the Indian Companies Act., 2013.

(c) Separate legal entity: Being an artificial person a company has its own legal entity separate from its members. It can own assets or property, enters into contracts, sue, or can be sued by anyone in the court of law. Its shareholders cannot be held liable for any conduct of the company.

(d) Perpetual existence: A joint-stock company continues to exist as long as it fulfills the requirements of law. It is not affected by the death, lunacy, insolvency, or retirement of any of its members.

(e) Common seal: A joint-stock company has a seal, which is used while dealing with others or entering into contracts with outsiders. It is called a common seal as it can be used by any officer at any level of the organization working on behalf of the company. Any document, on which the company’s seal ‘is put and is duly signed bý any official of the company, becomes binding on the company.

(f) Association of persons: A company is a voluntary association of persons established for-profit motive. A private company must have at least 2 persons and the public limited company must have at least 7 persons to get it registered. The maximum number of persons required for the registration in the case of a private company is 50 and in the case of a public company, there is no maximum limit.

(g) Limited liability: The liability of the shareholders is limited to the extent of the face value of the shares held by them. The shareholders are not liable personally for the paýment of the debt of the company.

(h) Transferability of shares: The shares of a public limited company are freely transferable and can be purchased and sold through the stock exchanges. A shareholder of a public limited company can transfer his shares without the consent of others except in the case of private companies.

(i) Large capital: A joint-stock company can raise a large amount of capital because the number of persons contributing towards capital is more in number when compared to sole proprietorship or partnership.

(j) Democratic management: Joint stock companies have democratic management and control. That is, even though the shareholders are owners of the company, all of them cannot participate in ‘the management of the company. Normally, the shareholders elect representatives from among themselves known as ‘Directors’ to manage the affairs of the company.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 37.
Explain the principles of insurance.
Answer:
(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: If 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 the 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 the accident, he suffered a loss of 3 lakhs, then the insurance company will compensate him 3 lakhs not only the policy amount i.e., 5 lakhs as the purpose behind it is 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: If a person has insured his house against ere, 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 more 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.

Question 38.
Explain four merits and four limitations of equity shares as a source of finance.
Answer:
Merits:
From Shareholders Point of View:
(a) The equity shareholders are the owners of the company.
(b) It is suitable for those who want to take risks for higher returns.
(c) The value of equity shares goes up in the stock market with the increase in profits of the concern.
(d) Equity shares can be easily sold in the stock market.
(e) The liability is limited to the nominal value of shares.
(f) Equity shareholders have a say in the management of a company as they are conferred voting rights.

From Management Point of View:
(a) A company can raise capital by issuing equity shares without creating any charge on its fixed assets.
(b) The capital raised by issuing equity shares is not required to be paid back during the lifetime of the company. It will be paid back only when the company is winding up.
(e) There is not binding on the company to pay dividends on equity shares. The company may declare dividends only if there are enough profits.
(d) If a company raises more capital by issuing equity shares, it leads to greater confidence among the creditors.

Demerits:
(a) As equity capital cannot be redeemed, there is a danger of overcapitalization.
(b) The dividend which a shareholder receives is neither fixed nor controllable by him. The management of the company decides how much dividend should be given.
(c) Equity share investment is a risky share compared to any other investment.
(d) Equity shareholders get dividends only if there remains any profit after paying debenture interest, tax, and preference dividends. Thus, getting dividends on equity shares is uncertain every year.
(e) Issue of fresh shares reduces the earnings of existing shareholders.
(f) Cost of equity is high when compared to other sources of finance.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 39.
Explain the different types of fixed shop small retailers.
Answer:
(a) Street stalls holders: These stalls are located in the main streets or street crossings. A stall is an improvised structure made of tin or wood. The street stall holder displays his goods on a temporary platform and sells toys, stationery, hosiery items. etc. at low prices.

(b) Secondhand goods shops: These shops sell used or second-hand articles such as books, clothes, furniture, etc. They cater to the needs of poor people who cannot afford new articles.

(c) General stores: These stores sell a wide variety of products under one roof. For example, a provision store deals in groceries, toothpaste, razor blades, bathing soap. washing powder, soft drinks, confectionery, cosmetics, etc. Consumers can buy most of their daily requirements in one place. Their time and effort are saved.

(d) Single line stores: These stores deal in one line of goods. They keep stock of different sizes, designs, and quality of goods in the same line. Book stores, chemist shops. electrical stores, shoe stores, cloth stores, jewelry shops, etc., are examples of single-line stores.

(e) Speciality shops: These shops generally specialize in one type of product rather than dealing in a line of products. Shops selling children’s garments. educational books, etc. are examples of such shops.

Question 40.
Explain the benefits of International business both to nations and firms.
Answer:
Benefits of international business to the nation:
(a) Earning of foreign exchange: International business helps a country to earn foreign exchange which it can later use for meeting its imports of capital goods, technology, petroleum products and fertilizers, pharmaceutical products, and a host of other consumer products which otherwise might not be available domestically.

(b) More efficient use of resources: As stated earlier, international business operatçs on a simple principle produce what your country can produce more efficiently, and trade the surplus production so generated with other countries to procure what they can produce more efficiently. When countries trade on this pñnciplejhey end up producing much more than what they can when each of them attempts to produce all the goods and services on its own.

(c) Improving growth prospects and employment potentials: Producing solely for the purposes of domestic consumption severely restricts a country’s prospects for growth and employmeùt. Many cöufltries, especially the developing ones, could not execute their plans to produce on a larger scale, and thus create employment for people because their domestic market was not large enough to absorb all that extra production.

(d) increased standard of living: In the absence of international trade of goods and services, it would not have been possible for the world community to consume goods and services produced in other countries that the people in these countries are able to consume and enjoy a higher standard of living.

(e) Greater variety of goods available for consumption: International trade brings in different varietieš of a particular produèt from different destinations. This gives consumers a wider array of choices which will not only improve their quality of life but as a whole, it will help the country to grow.

(f) Consumption at a cheaper cost: International trade enables a country to consume things that either cannot be produced within its borders or production may cost very high. Therefore it becomes cost cheaper to import from other countries through foreign trade.

(g) Reduces trade fluctuations: By making the size of the market large with large supplies an extensive demand, international trade reduces trade fluctuations. The prices of goods tend to remain more stable.

Benefits of international business to firms
(a) Prospects for higher profits: 1nternatiòna1 business can be more profitable than the domestic business. When the domestic prices are lower, business firms can earn more profits by selling their products in countries where prices are high.

(b) Increased capacity utiI1ation: Many firms set up productioñ capacities for their products which are in exçess of demand in the domestic market. By planning overseas expansion and procuring &n fr foreign çustoiers, they can think of making use of their surplus production capacities also improving the profitability of their operations.

(c) Prospects for growth: Business firms find it quite frustrating when demand for their products starts getting saturated in .the domestic market Such Finns can conšiderably improve prospects of their growth by plunging into overseas markets. This is precisely what has prompted many of the multinationals from the developed countries to enter into markets of developing countries.

(d) Way out to intense competition in the domestic market: When competition in the domestic market is very intense, internationalization seems to be the only way to achieve significant growth. The highly competitive domestic market drives many companies to go international in search of markets for their products.

(e) Improved business vision: The growth of the intçrnational business of many companies is essentially a part of their business policies or strategic management. The vision to become international comes from the urge to grow, the need to become more competitive, the need to diversify, and to gain strategic advantages of internationalization.

Section – E (PRACTICAL ORIENTED QUESTIONS)

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

Question 41.
You are planning to start a new business. Make a list of any five factors you consider while selecting a suitable form of business organization.
Answer:
The five-factor that should be considered while selecting a suitable form of business organization are:
(a) Cost
(b) Liability
(c) Continuity
(d) Management ability
(e) Degree of control
(f) Capital consideration
(g) Nature of business.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (North)

Question 42.
Suggest any five important sources of finance available for a business organization.
Answer:
Five important sources of finance are available for a business organization:
(a) Owner’s fund:

  • Equity shares
  • Retained earnings.

(b) Borrowed funds:

  • Debenture
  • Loans from banks
  • Loans from a financial institution
  • Public deposit
  • Lease financing.

Question 43.
Give a list of any five institutions which support small businesses in India.
Answer:
Five institutions that support small businesses in India are:
(a) National Bañk 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).

1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Students can Download 1st PUC Business Studies Previous Year Question Paper March 2018 (South), Karnataka 1st PUC Business Studies Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus.

Karnataka 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

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.
Mention any one type of economic activity.
Answer:
Business is one type of economic activity.

Question 2.
Who is Kartha?
Answer:
Under Hindu Undivided Families, the business is headed by the eldest male member of the family is called Karta.

Question 3.
A government company is any company in which the paid-up capital held by the government is not less than
(a) 49%
(b) 51%
(c) 50%
(d) 25%
Answer:
(b) 51%

Question 4.
Expand RTGS.
Answer:
Real-Time Gross Settlement.

Question 5.
The payment mechanism most typical to e-business is
(a) Cash on delivery
(b) Cheques
(c) Credit and debit card
(d) e-cash
Answer:
(d) e-cash

Question 6.
Carbon monoxide emitted by automobiles directly contributes to
(a) Water pollution
(b) Noise pollution
(c) Sound pollution
(d) Air pollution
Answer:
(d) Air pollution

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 7.
Who are promoters?
Answer:
A person or group of persons who conceive the idea of setting up a new business, assess its feasibility and take necessary steps to arrange the basic requirements, and establish a business unit say, a Company and put into operation is known as a promoter.

Question 8.
A.D.R. is issued in
(a) Canada
(b) China
(c) India
(d) the USA
Answer:
(d) the USA

Question 9.
What is the TAX holiday?
Answer:
A government incentive program that offers a tax reduction or elimination to businesses is called tax holiday.

Question 10.
What is retail trade?
Answer:
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 wholesalers and sells them in small quantities to the ultimate consumers.

Question 11.
What is import trade?
Answer:
Import trade refers to the purchase of goods from other countries for dòmestic use.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 12.
Name any one document of export business.
Answer:
Export invoice.

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.
Answer:
(a) Banking and Finance
(b) Transport and Communication

Question 14.
Define Partnership.
Answer:
According to Section 4(2) Indian Partnership Act, 192 defines partnership as “the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.”

Question 15.
State any two merits of Departmental undertakings.
Answer:
Merits:
(a) These undertakings fâcilitate the Parliament to exercise effective control over their operations.
(b) These ensure a high degree of public accountability.

The limitations of the departmental undertaking are:
(a) Departmental undertakings fail to provide flexibility, which is ‘essential for the smooth operation of the business.
(b) The employees or heads of departments of such undertakings are not allowed to take independent decisions, without the approval of the ministry concerned. This leads to delays, in matters where prompt decisions are required.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 16.
What is e-banking?
Answer:
it means conducting banking operations through electronic means or devices such as computers mobile, ATMs, etc.

Question 17.
State any two benefits of e-business.
Answer:
Two benefits of e-business are:
(a) Global reach/access
(b) Convenience.

Question 18.
What is business ethics?
Answer:
Business ethics is defined as a set of moral standards which society expects from businessmen.

Question 19.
Give the meaning of minimum subscription.
Answer:
In order to prevent companies from commencing business with inadequate resources, it has been provided that the company must receive applications for a certain minimum number of shares before going ahead with the allotment of shares. According to the Companies Act, this is called the ‘minimum subscription’.

Question 20.
Give the meaning of shares.
Answer:
Share is the smallest unit into which the total capital of the company is the dividend.

Question 21.
Give the meaning of village industries.
Answer:
Village industry has been defined as any industry located in a rural area that produces any goods, renders any service with or without the use of power, and in which the fixed capital investment per head or artisan or worker does not exceed Rs. 50,000.

Question 22.
Give the meaning of supermarket.
Answer:
Super Market is a large-scale retail store that sells a wide varietý of products like food items, vegetables, fruits, groceries, utensils, clothes, electronic appliances, household goods, etc. all under one roof.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 23.
What is Franchising?
Answer:
According to Charles W.L. Hill, “Franchising is basically a špecialised form of licensing in which the franchisor not only sells the intangible property to the franchisee but also insists that the franchisee agrees to abide by strict rules as to how it does business.”

Question 24.
What are mate’s receipts?
Answer:
Mate’s receipt is given by the commanding officer of the ship to the exporter after the cargo is loaded on the ship. The mate’s receipt indicates the name of the vessel, berth, date of shipment, description of packages, marks and numbers, condition of the cargo àt the time of receipt on board the ship, etc.

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 objectives of the business.
Answer:
Economic objectives: Business is an economic activity so their primary objectives are economic.
(a) Earning profits: One of the objectives of the business is to earn profits on the capital employed. Profitability refers to profit in relation to capital investment. Every business must earn a reasonable profit which is so important for its survival and growth.

(b) Market standing: Market standing refers to the posìtion of an enterprise in relation to its competitors. A business enterprise must aim at standing on a stronger footing in terms of offering competitive products to its customers and serving them to their satisfaction.

(c) Optimum utilization of resources: it is also one of the economic objectives of the business. It means using the resources in an optimum manner (i.e. without wastage) that helps in reduction of cost and increases the profit.

Social objectives: Business is an economic activity that cannot be carried on in isolation; there is the social objective of the business. The important social objectives of modern businesses are:
(a) Providing employment: One of the important social objectives of a business is to provide employment to society. This can be achieved by establishing new business units, expanding the market, etc.
(b) Paying fair wages and providing other benefits to the employees: One of the important social objectives of a business is to pay fair wages and other benefits such as medical facilities, transport, housing, etc. to employees.
(c) Prevention of pollution: With the growth of industries, pollution has become a serious matter. Pollution affects the hygiene and the health of human beings and even animaLs. So, one of the social objectives and obligations of every business is to make efforts to prevent the pollution of air and water.

Question 26.
Briefly explain any four features of Global Enterprises.
Answer:
Features:
(a) huge capital resources: These enterprises are characterized by possessing huge financial resources and the ability to raise funds from different sources. Because of their financial strength, they are able to survive under all circumstances.

(b) Foreign collaboration: Global enterprises usually enter into agreements with Indian companies pertaining to the sale of technology, production of goods, use of brand names for the final products, etc.

(c) Advanced technology: These enterprises possess technological superiorities in their methods of production. They are able to conform to international stand4rds and quality specifications. This leads to the industrial progress of the country.

(d) Product innovation: These enterprises are characterized by having highly sophisticated research and development departments engaged in the task of developing new products and superior designs of existing products.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 27.
Explain briefly the functions of Commercial Banks.
Answer:
The main functions of commercial banks are accepting deposits from the public and advancing them loans. However, besides these functions, there are many other functions that these banks perform.

All these functions can be divided under the following heads:
(a) Accepting Deposits: The most important function of commercial banks is to accept deposits from the public. Various sections of society, according to their needs and economic condition, deposit their savings with the banks. Generally, there are three types of deposits which are as follows:

1. Saving Bank Account: Thee accounts are introduced by the bank to mobilize small savings of low and middle-income groups of people. The ‘saving account’ is generally opened in the bank by salaried persons or by persons who have a fixed regular income.

2. Current account: This account is opened by businessmen who have a higher number of regular transactions with the bank.

3. Recurring Deposit Account: In a recurring deposit account, a certain fixed amount is invested every month for a specified period and the total amount is repaid with interest at the end of the particular fixed period.

4. Fixed Deposit Account: If the money is deposited by the customer with a bank for a fixed period of time for a fixed rate of interest. it iš repayable on expiry of a specified period of time.

(b) Giving Loans: The second important function of commercial banks is to advance loans to their customers. Banks charge interest from the borrowers and this is the main source of their income Banks advance loans not only on the basis of the deposits of the public rather they also advance loans on the basis of depositing the money in the accounts of borrowers. In other words, they create loans out of deposits and deposits out of loans. This is called credit creation by commercial banks.

Banks generally give the following types of loans and advances:

  • Bank Overdraft: An overdrive is an advance given by the bank allowing a customer to overdraw his current account up tò an agreed amount. Interest is charged at an agreed rate only on the amount overdrawn.
  • Cash Credits: Cash credit is a short-term cash loan to a company. It is a financial accommodation under which an advance is granted on a separate account called a cash credit account up to a specified limit.
  • Demand Loans: These are loans that can be recalled on demand by the banks. The entire loan amount is paid in a lump sum by crediting it to the loan account of the borrower, and thus entire loan becomes chargeable to interest with immediate effect.
  • Short-term Loans: These loans may be given as personal loans, loans to finance working capital, or as priority sector advances. These are made against some security and the entire loan amount is transferred to the loan account of the borrower.

Discounting of Bills of Exchange: It is short-term financial assistance extended by the bank usually tõ the businesses that they have a current account with the bank. When a bill of exchange is presented before the bank for encashment, the bank credits the amount to the customer’s account after deducting some discount. On maturity of the bill, the payment is received by the bank from the drawee.

(c) Investment of Funds: The banks invest their surplus funds in three types of securities as Government securities, other approved securities, and other securities.

  • Government securities include both, central and state governments, such as treasury bills, national savings certificates, etc.
  • Other securities include securities of state-associated bodies like electricity boards. housing boards, debentures of land development banks units of UTI, shares of regional rural banks, etc.

(d) Agency Functions: Banks function in the form of agents and representatives of their customers. Customers give their consent for performing such functions. The important functions of these types are as follows:

  • Banks collect cheques, drafts, bills of exchange, and dividends of the shares for their customers.
  • Banks make payment for their clients and at times accept the bills exchange: of their customers for which payment is made at the fixed time.
  • Banks pay the insurance premium of their customers. Besides this, they also deposit loan installments, income-tax, interest, etc. as per directions.
  • Banks purchase and sell securities, shares, and debentures on behalf of their customers.
  • Banks arrange to send money from one place to another for the convenience of their customers.

(e) Miscellaneous Functions: Besides the functions mentioned above, banks perform many other functions of general utility which are as follows:

  • Banks make ai-arrangement of lockers for the safe custody of valuable assets of their customers such as gold, silver, ‘çal documents, etc.
  • Banks give reference for their cu.4tomers.
  • Banks collect necessary and useful statistics relating to trade and industry.
  • For facilitating foreign trade, banks undertake to sell and purchase foreign exchange.
  • Banks advise their clients relating to investment decisions as specialists.
  • Bank does the underwriting of shares and debentures also.
  • Banks issue letters of credit.
  • During natural calamities, banks arc highly useful in mobilizing funds and donations.

Question 28.
Bring out any four distinctions between traditional business and e-business.
Answer:
1st PUC Business Studies Previous Year Question Paper March 2018 (South) 1

Question 29.
Explain the social responsibility of business towards.
(a) Shareholders
(b) Consumers
Answer:
Social responsibility of business towards shareholders:
(a) A fair rate of dividend should be regularly paid by the business enterprises to their owners.
(b) Management techniques should be effective and efficient so that the net present value of the business is maximized.
(c) Owners should be given the right to participate in the affairs of the enterprise.
(d) The tendency towards the growth of ‘Oligarchic management’ should be arrested.
(e) The owners should be given the full information regarding the working of the company. In other words, accurate and comprehensive reports have to be supplied.
(f) Financial information has to be disclosed and doubts, have to be clarified.
(g) Chairman and directors of the company should be easily accessible to the owner.

Social responsibility of business towards consumer:
(a) Ensuring availability of products in the right quantity, at the right place, and at the right time.
(b) Maintaining the quality of the goods, increasing the quality to the maximum extent so as to compete with any international product.
(c) Charging reasonable prices to its products.
(d) Correct weights and measures have to be used.
(e) The company must provide after-sale service for maintenance of goods.
(f) The business firms should avoid restrictive trade practices and see that full justice is done to the amount that is spent by a consumer.
(g) Constant investigation and discovery of growing wants of consumers, giving importance for research and development of new products that satisfy their wants
(h) Taking all such measures which promote consumer satisfaction, interest, and welfare.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 30.
Explain briefly any four clauses of the Memorandum of Association.
Answer:
(a) Name Clause: It contains the name by which the company will be established. The approval of the proposed name is taken in advance from the Registrar of the companies.

(b) Objects Clause: It contains a detailed description of the objects and rights of the company, for which it is being established. A company can undertake only those activities which are mentioned in the objects clause of its memorandum.

(c) Capital Clause: It contains the proposed authorized capital of the company. It gives the classification of the authorized capital into various types of shares, (like equity and preference shares) with their numbers and nominal value. A company is not allowed to raise more capital than the amount mentioned as its authorized capital. However, the company is permitted to alter this clause as per the guidelines prescribed by the Companies Act.

(d) Liability Clause: It contains financial limits up to which the shareholders are liable to pay off to the outsiders in the event of the company being dissolved or closed down.

Question 31.
Explain briefly the financial needs of a business.
Answer:
(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.
What are public deposits? Explain four merits of public deposit as a source of business finance.
Answer:
Merits
(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. e 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 is not diluted.

Demerits
(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 33.
Briefly explain any four common incentives to attract small-scale industries in rural areas by the government.
Answer:
Some of the common incentives provided by the Government for industries in backward and hilly areas are as follows:
(a) Land: Every state offers developed plots for setting up industries. The terms and conditions may vary. Some states don’t charge rent in the initial years, while some allow payment in installments.
(b) Power: It is supplied at a concessional rate of 50%, while some states exempt such units from payment in the initial years.
(c) Water: It is supplied on a no-profit, no-loss basis or with 50% concession or exemption from water charges for a period of 5 years. Sales Tax: In all union territories, industries are exempted from sales tax, while some states extend the exemption for 5 years period.
(d) Octroi: Most states have abolished octroi.
(e) Raw materials: Units located in backward areas get preferential treatment in the matter of allotments of scarce raw materials like cement, iron, and steel, etc.
(f) Finance: Subsidy of 10-15% is given for building capital assets. Loans are also offered at concessional rates.
(g) Industrial estates: Some states encourage the setting up of industrial estates in backward areas.
(h) Tax holiday: Exemption from paying taxes for 5 or 10 years is given to industries established in backward, hilly and tribal areas.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 34.
Explain briefly the four merits of departmental stores.
Answer:
Merits
(a) Attract a large number of customers: As these stores are usually located in central places they attract a large number of customers during the best part of the day.

(b) Convenience in buying: By offering a large variety of goods under one roof the departmental stores provide great convenience to customers in buying almost all goods of their requirements at one place. As a result, they do not have to run from one place to another to complete their shopping.

(c) Attractive services: A departmental store aims at providing maxîmum services to the customers. Some of the services offered by it include home delivery of goods, execution of telephone orders, grant of credit facilities, and provision for restrooms, telephone booths, restaurants, salons, etc.

(d) Economy of large-scale operations: As these stores are organized at a very large scale, the benefits of large-scale operations, particularly, in respect of the purchase of goods are available to them.

(e) Promotion of sales: The departmental stores are in a position to spend a considerable amount of money on advertising and other promotional activities, which help in boosting their sales.

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.
Briefly explain the various types of financial institutions.
Answer:
Industrial Finance Corporation of India (IFCI):

  • It was established in July 1948 as a statutory corporation under the Industrial Finance Corporation Act, 1948.
  • Its objectives include assistance towards balanced regional development and encouraging new entrepreneurs to enter into the priority sectors of the economy.

State Financial Corporations (SFC):

  • The State Financial Corporations Act, 1951 empowered the State Governments to establish State Financial Corporations.
  • Its, objective providing medium and short-term finance to industries of the states.
  • SFCs are helpful in ensuring balanced regional development, higher investment, more employment generation, and broad ownership of industries.

Industrial Credit and Investment Corporation of India (ICICI)

  • This was established in 1955 as a public limited company under the Companies Act.
  • Its objective is to assists the creation, expansion, and modernization of industrial enterprises exclusively in the private sector.

Question 36.
Explain briefly the import trade procedure.
Answer:
(a) Trade inquiry: The importing firm approaches the export firms with the help of trade inquiry they collecting information about their export prices and terms of exports. After receiving a trade inquiry, the exporter will prepare a quotation called a proforma invoice.

(b) Procurement of import license: There are certain goods that can be imported freely, while others need licensing. The importer needs to consult the Export-Import (EXIM) policy in force to know whether the goods that he or she wants to import are subject to import licensing.

(c) Obtaining foreign exchange: Since the supplier in the context of an import transaàtion resides in a foreign country, he/she demands payment in a foreign currency Payment in foreign currency involves the exchange of Indian currency into foreign currency.

(d) Placing order or indent: Aller obtaining the import license, the importer placeš an import order or indent with the exporter for the supply of the specified prodücts. The import order contains information about the price, quantity size, grade, and quality of goods ordered and the instructions relating to packing, shipping, ports of shipment and destination, etc

(e) Arranging for finance: The importer should make arrangements in advance to pay to the exporter on the arrival of goods at the port. Advanced planning for financing imports is necessary so as to avoid huge demurrages (i.e., penalties) on the imported goods lying uncleared at the port for want of payments.

(f) Obtaining a letter of credit: If the payment terms agreed between the importer and the overseas supplier is a letter of credit, then the importer should obtain the letter of credit from its bank and forward it to the overseas supplier.

(g) Receipt of shipment advice: After loading the goods on the vessel, the overseas supplier dispatches the shipment advice to the importer. Shipment advice contains information about the shipment of goods.

(h) Retirement of import documents: Having shipped the goods, the overseas supplier prepares a set of necessary documents as per the terms of contract and letter of credit and hands it over to his or her banker for their onward transmission and negotiation to the importer in the manner as specified in the letter of credit.

(i) Arrival of goods: Goods are shipped by the overseas supplier as per the contract. The person in charge of the carrier (ship or airway) informs the officer in charge at the dock or the airport about the arrival of goods in the importing country. He provides the document called import general manifest. import general manifest is a document that contains the details of the imported goods.

(j) Customs clearance and release of goods: All the goods imported into India have to pass through customs clearance after they cross the Indian borders. Customs clearance is a somewhat tedious process and calls for completing a number of formalities. It is, therefore, advised that importers appoint C&F agents who are well versed with such formalities and play an important role in getting the good’s customs cleared.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 37.
Explain the principles of insurance.
Answer:
(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: If 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 the 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 the accident, he suffered a loss of 3 lakhs, then the insurance company will compensate him 3 lakhs not only the policy amount i.e., 5 lakhs as the purpose behind it is 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: If a person has insured his house against ere, 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 more 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.

Question 38.
Explain any eight factors that affect the choice of an appropriate source of Business Finance.
Answer:
(a) Cost: There are two types of cost viz., the cost of procurement of funds and cost of utilizing the funds. Both these costs should be taken into account while deciding about the source of funds that will be used by an organization.

(b) Financial strength and stability of operations: The financial strength of a business is also a key determinant. In the choice of source of funds, the business should be in a sound financial position so as to be able to repay the principal amount and interest on the borrowed amount.

(c) Form of organization and legal status: The form of business organization and status influences the choice of a source for raising money.

(d) Purpose and time period: Business should plan according to the time period for which the funds are required. A short-term need for example can be met through borrowing funds at a low rate of interest through trade credit, commercial paper, etc. For long-term finance, sources such as the issue of shares and debentures are more appropriate.

(e) Risk profile: Businesses should evaluate each of the sources of finance in terms of the risk involved. For example, there is the least risk inequity as the share capital has to be repaid only at the time of winding up and dividends need not be paid if no profits are available.

(f) Control: A particular source of funds may affect the control and power of the owners on the management of a firm. Issue of equity shares may mean dilution of the control.

(g) Effect on crêdit worthiness: The dependence of business on certain sources may affect its creditworthiness in the market.

(h) Flexibility and ease: Another aspect affecting the choice of a source of finance is the flexibility and ease of obtaining funds. Restrictive provisions, detailed investigation, and documentation in case of borrowings from banks and financial institutions.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 39.
Explain four merits and four demerits of Mail Order Houses.
Answer:
Merits
(a) Limited capital requirement: Mail order business does not require heavy expenditure on building and other infrastructural facilities. Therefore, it can be started with a relatively low amount of capital.

(b) Elimination of middlemen: The biggest advantage of mail-order business from the point of view of consumers is that unnecessary middleman between the buyers and sellers are eliminated. This may result in a lot of savings both to the buyers as well as to the sellers.

(c) Wide reach: Under this system, the goods can be sent to all the places having postal services. This opens a wide scope for business as a large number of people throughout the country can be served through the mail.

(d) Convenience: Under this system goods are delivered to the doorstep of the customers. This results in great convenience to the customers in buying these products.

(e) Absence of bad debt: Since the mail-order houses do not extend credit facilities to the customers, there are no chances of any bad debt on account of non-payment of cash by the customers.

Limitations
(a) No credit: Supermarkets sell their products cash basis only. No credit facilities are made available to the buyers. This restricts the purchasing power of buyers from such markets.

(b) No personal attention: Supermarkets work on the principle of self-service. The customers, therefore, don’t get any personal attention. As a result, such commodities that require personal attention by salespeople cannot be handled effectively in supermarkets.

(c) Mishandling of goods: Some customers handle the goods kept on the shelf carelessly. This may raise costs in supermarkets.

(d) High overhead expenses: Supermarket incurs high overhead expenses. As a result, there have not been able to create low-price appeal among the customers.

(e) Possibility of abuse: This type of business provides a greater possibility of abuse to dishonest traders to cheat the customers by making false claims about the products or not honoring the commitments made through handbills or advertisements.

(f) High dependence on postal services: The success of mail-order business depends heavily on the availability of efficient postal services at a place. But in a vast country like ours, where many places are still without postal facilities, this type of business has Limited prospects.

Question 40.
What is a joint venture and explains the merits and demerits?
Answer:
A joint venture means establishing a firm that is jointly owned by two or more otherwise independent fiíms. In the widest sense of the term, it can also be described as any form of association which implies collaboration for more than a transitory period.

Advantages:
(a) Since the local partner also contributes to the equity capital of such a venture, the international firm finds it financially less burdensome to expand globally.
(b) Joint ventures make it possible to execute large projects requiring huge capital outlays and manpower.
(c) The foreign business firm benefits from a local partner’s knowledge of the host countries regarding the competitive conditions, culture, language, political systems, and business systems.
(d) In many cases entering into a foreign market is very costly and risky. This can be avoided by sharing costs and/or risks with a local partner under joint venture agreements.

Limitations:
(a) Foreign firms entering into joint ventures share the technology and trade secrets with local firms in foreign countries, thus always running the risks of such technology and secrets being disclosed to others.
(b) The dual ownership arrangement may lead to conflicts, resulting in a battle for control between the investing firms.

Section – E (PRACTICAL ORIENTED QUESTIONS)

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

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

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

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2018 (South)

Question 42.
Give a list of any live institutions which support small businesses in India.
Answer:
Five institutions that support small businesses in India are:
(a) National Bañk for Agriculture and Rural Development (NABARD)
(b) National Small Industrial Corporation (NSIC)
(c) Small Industrial Development Bank of India (SIDBI)
(d) Rural and Women Entrepreneurship Development (RWED)
(e) District Industries Centres (DICs).

Question 43.
Mention any five foreign trade promotion measures and schemes undertaken by the Government of India.
Answer:
Five foreign trade promotion measures and schemes are undertaken by the Government of India to boost up foreign trade are:
(a) Duty drawback scheme.
(b) Advance licence sheme.
(c) Exemption from payment of sales taxes.
(d) Export promotion capital goods scheme.
(e) Export finance at concessional rates of interest.
(f) Export of services.
(g) Export processing zones.
(h) 100 percent export-oriented unit.

1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Students can Download 1st PUC Business Studies Previous Year Question Paper March 2020 (North), Karnataka 1st PUC Business Studies Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus.

Karnataka 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

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.
What is trade?
Answer:
Trade refers to buying and selling of goods. It is the means by which goods are exchanged between the producers and the consumers.

Question 2.
In a co-operative society, the principle followed is
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes
Answer:
(b) One man one vote

Question 3.
Give an example for a government company.
Answer:
One example of a departmental undertaking is Indian Railways.

Question 4.
Which one of these is not the function of warehousing.
(a) Break the bulk
(b) Consolidation
(c) Price stabilisation
(d) Advertising
Answer:
(d) Advertising

Question 5.
What is plastic money?
Answer:
Plastic money made out of plastic is a new and easier way of paying for goods and services. It includes credit cards, debit cards smart cards, etc.

Question 6.
How is land pollution caused?
Answer:
Excessive use of fertilizers, chemicals, and pesticides in cultivation are causes of land pollution.

Question 7.
Which is considered the birth certificate of the company?
Answer:
Incorporation Certificate.

Question 8.
Debenture represent
(a) Additional Capital of the company
(b) Permanent Capital of the company
(c) Fluctuating Capital of the company
(d) Loan Capital of the company
Answer:
(d) Loan Capital of the company

Question 9.
What is a tax holiday?
Answer:
A government incentive program that offers a tax reduction or elimination to businesses is called a tax holiday.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Question 10.
Expand ‘AVM’
Answer:
Automated Vending machines.

Question 11.
A receipt issued by the commanding officer of the ship when the cargo loaded on the ship is known as
(a) Shipping Receipt
(b) Mate’s Receipt
(c) Cargo Receipt
(d) Charter Receipt
Answer:
(b) Mate’s Receipt.

Question 12.
What is Export trade?
Answer:
Export trade refers to the sale of a home or domestic goods to other èountries.

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.
Mention any two causes of business risks.
Answer:
Causes of business risks are:
(a) Natural causes like floods, earthquakes, etc.
(b) Human causes like theft, forgery, lavish expenditure of top mañagement, embezzlement of cash, etc.

Question 14.
What is a partnership at will?
Answer:
Partnership at will is a type. of partnership exists at the will of the partners. It can continue as long as the partners want and is terminated when any partner gives notice of withdrawal from the partnership to the firm.

Question 15.
Write any two benefits of the joint venture.
Answer:
The benefits of the joint venture are:
(a) Increased Resources and Capacity.
(b) Access to Technology.

Question 16.
Give the meaning of business services.
Answer:
Business is an economic activity involving the production and sale of goods and services undertaken with the motive of earning profit by satisfying human needs in society.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Question 17.
Give the meaning of outsourcing.
Answer:
Outsourcing is the process by which a company contracts another company to provide particular services.

Question 18.
What are the Social Responsibilities of business?
Answer:
Various activities which provide for the welfare of the society along with the earning of profit for the firm are termed as bSocia1 Responsibility of Business”.

Question 19.
Name any two clauses of the Memorandum of Association.
Answer:
(a) Objects Clause.
(b) Name Clause.

Question 20.
State the financial services rendered by a Factor.
Answer:
(a) Discounting of bills.
(b) Providing information about the creditworthiness of clients.

Question 21.
Give the meaning of village industries.
Answer:
Village industry has been defined as any industry located in a rural area that produces any goods, renders any service with or without the use of power, and in which the fixed capital investment per head or artisan or worker does not exceed Rs. 50,000.

Question 22.
State any two features of wholesalers.
Answer:
(a) The wholesaler purchases goods in large quantities from different manufacturers and resells them to the retailers.
(b) Wholesalers serve as an important link between manufacturers and retailers.

Question 23.
What is pre-shipment finance?
Answer:
Pre-shipment finance is the finance that the exporter needs before shipment of the order for procuring raw materials and other components, processing and packing of goods, and transportation of goods to the port of shipment or we can say pre-shipment finance is the finance which is required to undertake export production.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Question 24.
Why ‘Certificate of Origin’ is necessary?
Answer:
(a) Certificate of Origin is one of the required documents for import customs clearance in most of the importing countries.
(b) Certificate of origin is the document, certifying the origin of the country wherein the export goods are procured and manufactured originally.

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 the different types of manufacturing industries.
Answer:
Manufacturing industries may be sub-divided into four types. They are:
(a) Analytical industries: Analytical industries refer to those manufacturing industries which produce many types of products by analyzing, i.e. separating, the same basic raw materials into different products. For example, oil-refining.

(b) Synthetic industries: Synthetic industries refer to all those manufacturing industries where various materials are combined together in the manufacturing process to manufacture a new product. For example, the cement industry.

(c) Processing industries: Processingindustries refer to those manufacturing industries where different components are processed through different processes into a finished product. Paper industry, textile industry, etc. are examples of processiñg industries.

(d) Assembling industries: Assembling industries refer to those manufacturing industries where different component parts already manufactured are assembled into final products. The automobile industry is an example of assembling industries.

Question 26.
Briefly explain any four merits of Departmental Undertakings.
Answer:
Departmental undertakings have certain advantages which are as follows:
(a) These undertakings facilitate the Parliament to exercise effective control over their operations.
(b) These ensure a high degree of public accountability.
(e) The revenue earned by the enterprise goes directly to the treasury and hence is a source of income for the government.
(d) Where national security is concerned, this form is most suitable since it is under the direct control and supervision of the concerned Ministry.

Question 27.
Briefly explain any four types of life insurances.
Answer:
(a) Whole Life Policy: In this kind of policy, the amount payable to the insured will not be paid before the death of the assured. The sum then becomes payable only to the beneficiaries or heir of the deceased

(b) Endowment Life Assurance Policy: The insurer undertakes to pay a specified sum when the insured attains a particular age or on his death whichever is earlier. The sum is payable to his legal heir/s or nominee named therein in cases of death of the assured.

(c) Joint Life Policy: This policy is taken up by two or more persons. The premium is paid jointly or by either of them in installments or lump sum. The assured sum or policy money is payable upon the death of anyone person to the other survivor or survivors.

(d) Annuity Policy: Under this policy, the assured sum or policy money is payable after the assured attains a certain age in monthly, quarterly, and half-yearly or annual installments. The premium is paid in installments over a certain period or a single premium may be paid by the assured. This is useful to those who prefer a regular income after a certain age.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Question 28.
Explain any four limitations of e-business.
Answer:
The limitation of e-business is:
(a) inability to Experience the Product before Purchase: There are many products that consumers want to touch, feel, hear, taste and smell before they buy. E-commerce takes away that luxury.

(b) Less Security: The biggest obstacle in the growth of e-commerce is the issue of security. Internet is not a secured medium of communication. There are tools or options available to hackers whereby they cannot only monitor but also control any data communicated over the internet.

(c) Dependent on Internet: E-business is dependent on the internet. Mechanical failures in the system can cause unpredictable effects on the total processes.

(d) E-commerce Delays Goods: E-business takes more time to deliver the goods into consumer’s hands when compared to traditional business.

Question 29.
Explain briefly any four arguments for social responsibility.
Answer:
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 30.
Explain briefly any four functions performed by the promoter during the promotional stage in the formation of a company.
Answer:
(a) Identification of Business Idea or Opportunity: The first stage in the promotion of a company is the discovery of a new idea or prospection. It is the ‘promoter who conceives an idea of starting a business for making a profit. With his experience, the promoter discovers the field of gainful investment. His knowledge enables him to judge the soundness of a particular proposal.

(b) Feasibility Study or Detailed Investigation: The second stage in the promotion of a company is detailed investigation. This is done to find out whether the business which he likes to start will be profitable or not. For this purpose, he takes the help of experts Like engineers, accountants, cost accountants, market research specialists, etc. This will enable him to known the probable cost of production, the probable demand, and supply of the product. On the basis of reports submitted, the promoter takes his decision. 1f the reports are favorable, he proceeds further with his business idea.

(c) Company’s Name Approval: Having decided to form a company, the promoters have to select a name for it and submit, an application to the Registrar of Companies for the state in which the registered office of the company is to be situated, for its approval. The proposed name may be approved if it is not considered undesirable. Therefore, three names, in order of their priority are given in the application to the Registrar of Companies.

(d) Fixing up Signatories to the Memorandum of Association: Promoters have to decide about the members who will be signing the Memorandum of Association of the proposed company. Usually, the people signing Memorandum are also the first directors of the company.

(e) Appointment of Professional: Professionals such as mercantile bankers, auditors, legal advisors, etc. are appointed by the promoters to assist them in the preparation of necessary documents which are required to be filed with the Registrar of Companies.

(f) Preparation of Necessary Documents. The promoter takes up steps to get prepared certain legal documents, which have to be submitted under the law, to the Registrar of the Companies for getting the company registered. These documents are the Memorandum of Association and Articles of Associations.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Question 31.
Explain briefly the merits of retained earnings as a source of business finance.
Answer:
The company generally does not distribute all its earnings amongst the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as retained earnings.

Merits:
(a) Retained earnings are a permanent source of funds available to an organization.
(b) It does not involve any explicit cost in the form of interest, dividend or floatation cost.
(c) As the funds are generated internally, there is a greater degree of operational freedom and flexibility.
(d) It enhances the capacity of the business to absorb unexpected losses.
(e) It may lead to an increase in the market price of the equity shares of a company.

Demerits:
(a) Excessive plowing back may cause dissatisfaction amongst the shareholders as they would get lower dividends.
(b) It is an uncertain source of funds as the profits of the business are fluctuating.
(c) The opportunity cost associated with these funds is not recognized by many firms. This may lead to sub-optimal use of the funds.

Question 32.
Write short notes on (a) Equity shares (b) Preference Shares
Answer:
(a) 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 Owner’s funds.
(b) Equity shares are shares, which do not enjoy any preferential right in the matter of 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.

(b) 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 capital. Preference shares resemble debentures as they bear a fixed rate of return. ìl’so as the dividçnd is payable only at the discretion of the directors and only out of profit after tax, to that extent, these resemble equity shares.

(d) Thus, prefèrènceshares have some characteristics of both equity shares and debentures. Preference sÍaìeholders generally do not enjoy any voting rights.

Question 33.
Explain briefly any four features of cottage industries.
Answer:
The features of cottage industries are:
(a) Cottage industries are organized by individuals, with private resources.
(b) Cottage industries normally use family labor and locally available talent.
(c) The equipment used in cottage industries is simple.
(d) Capital investment in cottage industries is small.
(e) Cottage industries produce simple products, normally on their own premises.
(f) Cottage industries produce goods using indigenous technology.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Question 34.
Explain briefly the different types of itinerant retailers.
Answer:
The features of cottage industries are:
(a) Cottage industries are organized by individuals, with private resources.
(b) Cottage industries normally use family labor and locally available talent.
(c) The equipment used in cottage industries is simple.
(d) Capital investment in cottage industries is small.
(e) Cottage industries produce simple products, normally on their own premises.
(f) Cottage industries produce goods using indigenous technology.

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 types of Cooperative societies.
Answer:
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 soclètles:
(a) These societies are set up to protect the interest of small producers.
(b) The members comprise òf producerš desirous of procuring inputs for production of goods to meet the demand of consumers.
(c) The society aims to fìghtagainst 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 pro1uced 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 pool of output.

4. Farmer’s cooperative societies:
(a) These societies are established to protect the interests of farmers by providing 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 of large scale fanning and increase the 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 members and charge in 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 proeurîng residential accommodation at lower costs.
(c) The aim is to solve the housing problem of the members by constructing houses and giving them the option of paying in installments.
(d) These societies construct flats or provide lots to members ‘on which the members themselves can construct the houses as per their choice.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Question 36.
Explain the features of a Joint Stock Company.
Answer:
(a) Artificial person: Just like an individual, who takes birth, grows, enters into relationships, and dies, a joint-stock company takes birth, grows, enters into relationships, and dies. However, it is called an artificial person as to its birth, existence, and death are regulated by law arid it does not possess phýsical attributes like that of a normal person.

(b) Legal formation: No single indìvidtial or a group of individuals can start a business and call it a joint-stock company. A joint-stock company comes into existence only when it has been registered after completioñ of all formalities required by the Indian Companies Act., 2013.

(c) Separate legal entity: Being an artificial person a company has its own legal entity separate from its members. It can own assets or property, enters into contracts, sue, or can be sued by anyone in the court of law. Its shareholders cannot be held liable for any conduct of the company.

(d) Perpetual existence: A joint-stock company continues to exist as long as it fulfills the requirements of law. It is not affected by the death, lunacy, insolvency, or retirement of any of its members.

(e) Common seal: A joint-stock company has a seal, which is used while dealing with others or entering into contracts with outsiders. It is called a common seal as it can be used by any officer at any level of the organization working on behalf of the company. Any document, on which the company’s seal ‘is put and is duly signed bý any official of the company, becomes binding on the company.

(f) Association of persons: A company is a voluntary association of persons established for-profit motive. A private company must have at least 2 persons and the public limited company must have at least 7 persons to get it registered. The maximum number of persons required for the registration in the case of a private company is 50 and in the case of a public company, there is no maximum limit.

(g) Limited liability: The liability of the shareholders is limited to the extent of the face value of the shares held by them. The shareholders are not liable personally for the paýment of the debt of the company.

(h) Transferability of shares: The shares of a public limited company are freely transferable and can be purchased and sold through the stock exchanges. A shareholder of a public limited company can transfer his shares without the consent of others except in the case of private companies.

(i) Large capital: A joint-stock company can raise a large amount of capital because the number of persons contributing towards capital is more in number when compared to sole proprietorship or partnership.

(j) Democratic management: Joint stock companies have democratic management and control. That is, even though the shareholders are owners of the company, all of them cannot participate in ‘the management of the company. Normally, the shareholders elect representatives from among themselves known as ‘Directors’ to manage the affairs of the company.

Question 37.
Give the meaning of warehousing and explain the different types of warehouses.
Answer:
The warehouse was initially viewed as a static unit for keeping and storing goods in a scìentifÌc and systematic manner so as to maintain their original quality, value, and usefulness.
(a) Private Warehouses: These are operated, owned, or leased by a company handling their own goods, such as retail chain stores or multi-brand, multi-product companies. As a general rule, an efficient warehouse is planned around a material handling system in order to encourage maximum efficiency of product movement.

(b) Public Warehouses: It can be used for storage of goods by traders, manufacturers, or any member of the public after the payment of a storage fee or charges. The government regulates the operation of these warehouses by issuing licenses for them to private parties.

(c) Bonded Warehouses: These are licensed by the government to accept imported goods prior to payment of tax and customs duty. These are goods which are imported from other countries. Importers are not permitted to remove goods from the docks or the airport till customs duty is paid.

(d) Government Warehouses: These warehouses are fully owned and managed by the government. The government manages them through organizations set up in the public sector.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Question 38.
Discuss the factors that affect while making the decision for the choice of an appropriate source of funds by a business organization.
Answer:
(a) Cost: There are two types of cost viz., the cost of procurement of funds and cost of utilizing the funds. Both these costs should be taken into account while deciding about the source of funds that will be used by an organization.

(b) Financial strength and stability of operations: The financial strength of a business is also a key determinant. In the choice of source of funds, the business should be in a sound financial position so as to be able to repay the principal amount and interest on the borrowed amount.

(c) Form of organization and legal status: The form of business organization and status influences the choice of a source for raising money.

(d) Purpose and time period: Business should plan according to the time period for which the funds are required. A short-term need for example can be met through borrowing funds at a low rate of interest through trade credit, commercial paper, etc. For long-term finance, sources such as the issue of shares and debentures are more appropriate.

(e) Risk profile: Businesses should evaluate each of the sources of finance in terms of the risk involved. For example, there is the least risk inequity as the share capital has to be repaid only at the time of winding up and dividends need not be paid if no profits are available.

(f) Control: A particular source of funds may affect the control and power of the owners on the management of a firm. Issue of equity shares may mean dilution of the control.

(g) Effect on creditworthiness: The dependence of a business on certain sources may affect its creditworthiness in the market.

(h) Flexibility and ease: Another aspect affecting the choice of a source of finance is the flexibility and ease of obtaining funds. Restrictive provisions, detailed investigation, and documentation in case of borrowings from banks and financial institutions.

(j) Tax benefits: Various sources may also be weighed in terms of their tax benefits. For example, while the dividend on preference shares is not tax-deductible, interest paid on debentures and loans is tax-deductible and may, therefore, be preferred by organizations seeking tax advantage.

Question 39.
Explain the four merits and four limitations of mail-order houses.
Answer:
Merits
(a) Limited capital requirement: Mail order business does not require heavy expenditure on building and other infrastructural facilities. Therefore, it can be started with a relatively low amount of capital.

(b) Elimination of middlemen: The biggest advantage of mail-order business from the point of view of consumers is that unnecessary middleman between the buyers and sellers are eliminated. This may result in a lot of savings both to the buyers as well as to the sellers.

(c) Wide reach: Under this system, the goods can be sent to all the places having postal services. This opens a wide scope for business as a large number of people throughout the country can be served through the mail.

(d) Convenience: Under this system goods are delivered to the doorstep of the customers. This results in great convenience to the customers in buying these products.

(e) Absence of bad debt: Since the mail-order houses do not extend credit facilities to the customers, there are no chances of any bad debt on account of non-payment of cash by the customers.

Limitations
(a) No credit: Supermarkets sell their products L a cash basis only. No credit facilities are made available to the buyers. This restricts the purchasing power of buyers from such markets.

(b) No personal attention: Supermarkets work on the principle of self-service. The customers, therefore, don’t get any personal attention. As a result, such commodities that require personal attention by salespeople cannot be handled effectively in supermarkets.

(c) Mishandling of goods: Some customers handle the goods kept on the shelf carelessly. This may raise costs in supermarkets.

(d) High overhead expenses: Supermarket incurs high overhead expenses. As a result, these have not been able to create low price appeal among the customers.

(e) Possibility of abuse: This type of business provides a greater possibility of abuse to dishonest traders to cheat the customers by making false claims about the products or not honoring the commitments made through handbills or advertisements.

(f) High dependence on postal services: The success of mail-order business depends heavily on the availability of efficient postal services at a place. But in a vast country like ours, where many places are still without postal facilities, this type of business has limited prospects.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (North)

Question 40.
Explain briefly the steps involved in the import procedure.
Answer:
(a) Trade inquiry: The importing firm approaches the export firms with the help of trade inquiry they collecting information about their export prices and terms of exports. After receiving a trade inquiry, the exporter will prepare a quotation called a proforma invoice.

(b) Procurement of import license: There are certain goods that can be imported freely, while others need licensing. The importer needs to consult the Export-Import (EXM) policy in force to know whether the goods that he or she wants to import are subject to import licensing.

(c) Obtaining foreign exchange: Since the supplier in the context of an import transaàtion resides in a foreign country, he/she demands payment in a foreign currency Payment in foreign currency involves the exchange of Indian currency into foreign currency.

(d) Placing order or indent: After obtaining the import license, the importer placeš an import order or indent with the exporter for the supply of the specified products. The import order contains information about the price, quantity size, grade, and quality of goods ordered and the instructions relating to packing, shipping, ports of shipment and destination, etc

(e) Arranging for finance: The importer should make arrangements in advance to pay to the exporter on the arrival of goods at the port. Advanced planning for financing imports is necessary so as to avoid huge demurrages (i.e., penalties) on the imported goods lying uncleared at the port for want of payments.

(f) Obtaining a letter of credit: If the payment terms agreed between the importer and the overseas supplier is a letter of credit, then the importer should obtain the letter of credit from its bank and forward it to the overseas supplier.

(g) Receipt of shipment advice: After loading the goods on the vessel, the overseas supplier dispatches the shipment advice to the importer. Shipment advice contains information about the shipment of goods.

(h) Retirement of import documents: Having shipped the goods, the overseas supplier prepares a set of necessary documents as per the terms of contract and letter of credit and hands it over to his or her banker for their onward transmission and negotiation to the importer in the manner as specified in the letter of credit.

(i) Arrival of goods: Goods are shipped by the overseas supplier as per the contract. The person in charge of the carrier (ship or airway) informs the officer in charge at the dock or the airport about the arrival of goods in the importing country. He provides the document called import general manifest. import general manifest is a document that contains the details of the imported goods.

(j) Customs clearance and release of goods: All the goods imported into India have to pass through customs clearance after they cross the Indian borders. Customs clearance is a somewhat tedious process and calls for completing a number of formalities. It is, therefore, advised that importers appoint C&F agents who are well versed with such formalities and play an important role in getting the good’s customs cleared.

Section – E (PRACTICAL ORIENTED QUESTIONS)

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

Question 41.
As a customer of a bank, list out any five e-banking services enjoyed by you.
Answer:
The five e-banking services are:
(a) Electronic fund transfer.
(b) Automated teller machines.
(c) Electronic data Interchange.
(d) Credit cards electronic or digital cash.
(e) Telebanking / Mobile banking.
(f) Anywhere banking (or) core banking.

Question 42.
As a businessman having concern for environmental protection, suggest any five steps measures to control environmental pollution.
Answer:
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 Previous Year Question Paper March 2020 (North)

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

1st PUC Business Studies Previous Year Question Paper March 2020 (South)

Students can Download 1st PUC Business Studies Previous Year Question Paper March 2020 (South), Karnataka 1st PUC Business Studies Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus.

Karnataka 1st PUC Business Studies Previous Year Question Paper March 2020 (South)

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.
What is Hundi?
Answer:
Hundi is an instrument of exchange, which was prominent in the Indian subcontinent. It involved a contract which and warrant the payment of money, the promise or order which is unconditionally capable of change through transfer by valid negotiation.

Question 2.
Provision of residential accommodation to the members at reasonable rates is the objective of
(a) Producer’s co-operative
(b) Consumer co-operative
(c) Housing co-operative
(d) Credit co-operative
Answer:
(c) Housing co-operative

Question 3.
Give an example for a government company.
Answer:
Indian Telephone Industries Ltd; BSNL, BHEL.

Question 4.
Expand EFT.
Answer:
Electronic Fund Transfer.

Question 5.
The payment mechanism most typical to e-business is
(a) Cash on Delivery
(b) Cheques
(c) Credit and debit cards
(d) e-cash
Answer:
(d) e-cash

Question 6.
How is land pollution caused?
Answer:
Dumping of toxic waste.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (South)

Question 7.
Who are promoters?
Answer:
A person or group of persons who conceive the idea of setting up a new business, assess its feasibility and take necessary steps to arrange the basic requirements, and establish a business unit say, a Company and put into operation is known as a promoter.

Question 8.
What is the tenure (period) of commercial papers?
Answer:
90 days to 364 days.

Question 9.
In which year start-up India Scheme was implemented?
Answer:
16 January 2016

Question 10.
Which of the following does not come under the types of Itinerant retailers?
(a) Peddlers
(b) Market Traders
(c) Cheap Jacks
(d) Street Stall Holders
Answer:
(d) Street Stall Holders

Question 11.
How many commodity Boards are working in India?
Answer:
Seven.

Question 12.
Which one of the following modes of entry requires a higher level of greatest risks?
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture
Answer:
(d) Joint venture.

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.
What is Business?
Answer:
Business is an economic activity involving the production and sale of goods and services undertaken with the motive of earning profit by satisfying human needs in society.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (South)

Question 14.
Define Partnership.
Answer:
According to Section 4(2) Indian Partnership Act, 192 defines partnership as “the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.”

Question 15.
State any two limitations of Departmental undertakings.
Answer:
The two limitations of the departmental undertaking are:
(a) Departmental undertakings fail to provide flexibility, which is essential for the smooth operation of the business.
(b) There is a lot of political interference through the ministry.

Question 16.
Mention any two types of Banks.
Answer:

Question 17.
Distinguish between e-business and e-commerce.
Answer:
1st PUC Business Studies Previous Year Question Paper March 2020 (South) 1

Question 18.
What is the social responsibility of business?
Answer:
Various activities which provide for the welfare of the society along with the earning of profit for the firm are termed as “Social Responsibility of Business”.

Question 19.
Name any two stages in the formation of a company.
Answer:
(a) Promotion stage.
(b) Incorporation stage.

Question 20.
Write the meaning of retained earnings.
Answer:
A company generally doesn’t distribute all its earnings amongst the shareholder as dividends. A portion of the net earnings may be retained by the business for use in the future.

Question 21.
State any two institutions set up by the government for small and rural industries?
Answer:
(a) National Bank for Agriculture and Rural Development (NABARD).
(b) National Small Industries Corporation (N SIC).

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (South)

Question 22.
Give the meaning of vending machines?
Answer:
Automated vending machines are the newest revolution in marketing methods. Coin-operated vending machines are proving useful in selling several products such as hot beverages, platform tickets, milk, soft drinks, chocolates, newspaper, etc. in many countries.

Question 23.
What do you mean by Franchising?
Answer:
According to Charles W.L. Hill, “Franchising is basically a specialized form of licensing iñ which the franchisor not only sells the intangible property to the franchisee but also insists that the franchisee agrees to abide by strict rules ás to how it does business.”

Question 24.
State any two measures and schemes introduced by the government to promote international business?
Answer:
(a) Duty drawback scheme.
(b) Export manufacturing under the bond scheme.

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 the different types of manufacturing industries.
Answer:
The various types of industries are:
Primary industries: Primary industries refer to industries that are concerned with the production of goods mainly with the help of nature. Mining, agriculture, forestry, fishing, etc. are examples of primary industries. Primary industries can be classified as:

(a) Genetic industries: Genetic industries refer to those activities which are undertaken for reproducing or multiplying plants and animals with the object of making a profit from their sales. Example: Nurseries raising seedlings and plants, cattle breeding, poultry fanning, etc.

(b) Extractive industries: Extractive industries refer to those activities which are concerned with the extraction or production of wealth from the soil, air, water, or from beneath the surface of the earth. Example: Agriculture, mining, fishing, forestry, hunting, fruit gathering, etc.

Secondary industries: Secondary industries refer to industries where human labor plays a more important role than nature. Secondary industries can be classified into:
(a) Manufacturing industries: Manufacturing industries refer to activities concerned with the conversion of raw materials or semi-finished goods into finished goods.

Example: Conversion of raw cotton into cotton textiles; conversion of raw jute into jute products; production of sugar from sugarcane, etc. Manufacturing industries may be sub-divided into four types. They are:
1. Analytical industries: Analytical industries refer to those manufacturing industries which produce many types of products by analyzing, i.e. separating, the same basic raw materials into different products. Example: In oil refining, the same crude oil is analyzed or separated into different products like petrol, diesel oil, kerosene, lubricating oil, etc.

2. Synthetic industries: Synthetic industries refer to all those manufacturing industries where various materials are combined together in the manufacturing process to manufacture a new product. Example: The cement industry is a synthetic industry, in the sense that cement is produced by combining many materials, such as gypsum, coal, etc.

3. Processing industries: Processing industries refer to those manufacturing industries where different components are processed through different processes into a finished product. The Paper industry, textile industry, etc. are examples of processing industries.

4. Assembling industries: Assembling industries refer to those manufacturing industries where different component parts already manufactured are assembled into final products. The automobile industry is an example of assembling industries.

(b) Construction industries: Construction industries refer to those activities which are concerned with the creation of infrastructure necessary for economic development. In other words, they refer to those who are concerned with the construction of buildings, roads, bridges, railway lines, dams canals, etc.

Tertiary industries: Tertiary industries refer to industries that provide support services to primary and secondary industries and also to activities relating to trade. These days, services also are regarded as industries and are called tertiary industries. These industries are regarded as part of commerce, i.e. as auxiliaries to trade.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (South)

Question 26.
Briefly explain any four features of Global Enterprises.
Answer:
Features:
(a) huge capital resources: These enterprises are characterized by possessing huge financial resources and the ability to raise funds from different sources. Because of their financial strength, they are able to survive under all circumstances.

(b) Foreign collaboration: Global enterprises usually enter into agreements with Indian companies pertaining to the sale of technology, production of goods, use of brand names for the final products, etc.

(c) Advanced technology: These enterprises possess technological superiorities in their methods of production. They are able to conform to international standards and quality specifications. This leads to the industrial progress of the country.

(d) Product innovation:’These enterprises are characterized by having highly sophisticated research and development departments engaged in the task of developing new products and superior designs of existing products.

Question 27.
Briefly explain any four functions of warehousing.
Answer:
Usually, goods are not sold or consumed immediately after production. They are held in stock to be available as and when required. A special arrangement must be made for the storage of goods to prevent loss or damage. Warehousing helps business firms to overcome the problem of storage and facilitates the availability of goods when needed.

Functions of Warehousing
(a) Consolidation: The warehouse receives and consolidates materials/goods from different production plants and dispatches the same to a particular customer on a single transportation shipment.

(b) Break the Bulk: The warehouse divides the bulk quantity of goods received from the production plants into smaller quantities and then transported according to the requirements of clients to their places of business.

(c) Stock Piling Goods or Raw Materials which are not required immediately for sale or manufacturing are stored in warehouses to be made available to business depending on customers’ demand. This type of warehouse is also known as the storehouse of surplus goods.

(d) Value Added Services: Provision of value-added «services such as in transit mixing, packaging, and labeling is also a function of modern warehousing.

(e) Price Stabilization: Warehousing performs the function of stabilizing prices by adjusting the supply of goods according to demand. Financing warehouse owners provide loans to the owners on the security of goods and further supply goods on credit terms to customers. The warehouse keepers issue a receipt when goods are kept in the warehouse. This receipt can be used as security to get loans from banks and owners. In this way, it also helps in financing.

Question 28.
Explain briefly the steps involved in online transactions.
Answer:
The following steps are involved in online trading:
(a) Registration: Before online shopping, one has to register with the online vendor by filling- up a registration form. Registration means that you have an ‘account’ with the online vendor. Among various details that need to be filled in is a ‘password’ as the sections relating to your ‘account’.

(b) Selection of product: The buyer should select the product from the menu given on the website. For this purpose, the buyer might have to visit the website of two or more vendors and compare price and quantity.

(c) Placing an order: While browsing the website, the buyer should drop the selected item in his shopping cart. Once the products are selected and the order is placed sales take place.

(d) Payment mechanism: When the sale takes place, the buyer should give his payment option. The payment can be made in any one of the following ways:
(a) Cash-on-Delivery (COD): As is clear from the name, payment for the goods ordered online may be made in cash at the time of physical delivery of goods.

(b) Cheque: The buyer may send a cheque to the online vendor. In this case, the goods are delivered upon realization of the cheque.

(c) Net-banking transfer: The buyer may instruct his bank to electronically transfer the amount from his account to the account of the online vendor.

(d) Debit card or credit card: Popularly refêrred to as ‘plastic money,’ these cards are the most widely used medium for online transactions.

  • A credit card allows its holder to make purchases on credit. Later the issuing bank transfers the amount to the online vendor’s account and the buyer’s account is debited.
  • A debit card allows its holder to make purchases up to a specified amount. The amount is deducted electronically as and when the purchase is made.

(e) Digital cash: This is a form of electronic currency that exists only in cyberspace. This type of currency has no real physical properties but offers the ability to use real currency in an electronic format.

Question 29.
Explain the social responsibility of business towards.
(a) Shareholders
(b) Consumers
Answer:
Social responsibility of business towards shareholders:
(a) A fair rate of dividend should be regularly paid by the business enterprises to their owners.
(b) Management techniques should be effective and efficient so that the net present value of the business is maximized.
(c) Owners should be given the right to participate in the affairs of the enterprise.
(d) The tendency towards the growth of ‘Oligarchic management’ should be arrested.
(e) The owners should be given the full information regarding the working of the company. In other words, accurate and comprehensive reports have to be supplied.
(f) Financial information has to be disclosed and doubts, have to be clarified.
(g) Chairman and directors of the company should be easily accessible to the owner.

Social responsibility of business towards consumer:
(a) Ensuring availability of products in the right quantity, at the right place, and at the right time.
(b) Maintaining the quality of the goods, increasing the quality to the maximum extent so as to compete with any international product.
(e) Charging reasonable prices to its products.
(d) Correct weights and measures have to be used.
(e) The company must provide after-sale service for maintenance of goods.
(f) The business firms should avoid restrictive trade practices and see that full justice is done to the amount that is spent by a consumer.
(g) Constant investigation and discovery of growing wants of consumers, giving importance to research and development of new products that satisfy their wants.
(h) Taking all such measures which promote consumer satisfaction, interest, and welfare.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (South)

Question 30.
Explain briefly any four clauses of the Memorandum of Association.
Answer:
(a) Name Clause: It contains the name by which the company will be established. The approval of the proposed name is taken in advance from the Registrar of the companies.

(b) Objects Clause: It contains a detailed description of the objects and rights of the company, for which it is being established. A company can undertake only those activities which are mentioned in the objects clause of its memorandum.

(c) Capital Clause: It contains the proposed authorized capital of the company. It gives the classification of the authorized capital into various types of shares, (like equity and preference shares) with their numbers and nominal value. A company is not allowed to raise more capital than the amount mentioned as its authorized capital. However, the company is permitted to alter this clause as per the guidelines prescribed by the Companies Act.

(d) Liability Clause: It contains financial limits up to which the shareholders are liable to pay off to the outsiders in the event of the company being dissolved or closed down.

Question 31.
Explain briefly the financial needs of a business.
Answer:
(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.
Explain the merits of lease financing as a source of business finance.
Answer:
Merits of lease financing
(a) A lease arrangement may impose certain restrictions on the use of assets. For example, it may not allow the lessee to make any alteration or modification in the asset.
(b) The normal business operations may be affected in case the lease is not renewed.
(c) It may result in higher payout obligation in case the equipment is not found useful and the lessee opts for premature termination of the lease agreement.
(d) The lessee never becomes the owner of the asset. It deprives him of the residual value of the asset.

Limitations
(a) It enables the lessee to acquire the asset with a lower investment.
(b) Simple documentation makes it easier to finance assets.
(c) Lease rentals paid by the lessee are deductible for computing taxable profits.
(d) It provides finance without diluting the ownership or control of the business.
(e) The lease agreement does not affect the debt-raising capacity of an enterprise.
(f) The risk of obsolescence is borne by the lesser. This allows greater flexibility for the lessee to replace the asset.

Question 33.
Explain any four ways to fund starts up’s.
Answer:
The funding for startups can also be availed in the following ways:
(a) Bootstrapping: Commonly known as self-financing it is considered as the first funding option because by stretching out your personal savings and resources.

(b) Angel Investment: Angel investors are individuals with surplus cash who have a keen interest to invest in upcoming startups.

(c) Venture capital: There are professionally managed funds that are invested in companies that have huge potential.

(d) Crowdfunding: It is the pooling of resources by a group of people for a common goal.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (South)

Question 34.
Explain briefly any four services of retailers to manufactures and wholesalers.
Answer:
Retailers services towards manufacture are:
(a) Help in the distribution of goods: A retailer’s most important service to the wholesalers and manufacturers is to provide help in the distribution of their products by making these available to the final consumers.

(b) Enabling large-scale operations: On account of the retailer’s services, the manufacturers and wholesalers are freed from the botheration of making individual sales to consumers in small quantities. This enables them to operate at a relatively large scale, and thereby fully concentrate on their other activities.

(c) Collecting market information: As retailers remain in direct and constant touch with the buyers, they serve as an important source of collecting market information about the tastes, preferences, and attitudes of customers. Such information is considered very useful in making important marketing decisions in an organization.

(d) Help in promotion: From time to time, manufacturers and distributors have to carry on various promotional âctivities in order to increase the sale of their products. For example, they have to advertise their products and offer short-term incentives in the form of coupons, free gifts, sales contests, and so on. Retailers participate în these activities in various ways and, thereby, help in promoting the sale of the products.

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 any four merits and four demerits of sole proprietorship form of business organization.
Answer:
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 of a 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 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.

Question 36.
Explain the features of a joint-stock company.
Answer:
(a) Artificial person: Just like an individual, who takes birth, grows, enters into relationships, and dies, a joint-stock company takes birth, grows, enters into relationships, and dies. However, it is called an artificial person as to its birth, existence, and death are regulated by law arid it does not possess phýsical attributes like that of a normal person.

(b) Legal formation: No single indìvidtial or a group of individuals can start a business and call it a joint-stock company. A joint-stock company comes into existence only when it has been registered after completioñ of all formalities required by the Indian Companies Act., 2013.

(c) Separate legal entity: Being an artificial person a company has its own legal entity separate from its members. It can own assets or property, enters into contracts, sue, or can be sued by anyone in the court of law. Its shareholders cannot be held liable for any conduct of the company.

(d) Perpetual existence: A joint-stock company continues to exist as long as it fulfills the requirements of law. It is not affected by the death, lunacy, insolvency, or retirement of any of its members.

(e) Common seal: A joint-stock company has a seal, which is used while dealing with others or entering into contracts with outsiders. It is called a common seal as it can be used by any officer at any level of the organization working on behalf of the company. Any document, on which the company’s seal ‘is put and is duly signed bý any official of the company, becomes binding on the company.

(f) Association of persons: A company is a voluntary association of persons established for-profit motive. A private company must have at least 2 persons and the public limited company must have at least 7 persons to get it registered. The maximum number of persons required for the registration in the case of a private company is 50 and in the case of a public company, there is no maximum limit.

(g) Limited liability: The liability of the shareholders is limited to the extent of the face value of the shares held by them. The shareholders are not liable personally for the paýment of the debt of the company.

(h) Transferability of shares: The shares of a public limited company are freely transferable and can be purchased and sold through the stock exchanges. A shareholder of a public limited company can transfer his shares without the consent of others except in the case of private companies.

(i) Large capital: A joint-stock company can raise a large amount of capital because the number of persons contributing towards capital is more in number when compared to sole proprietorship or partnership.

(j) Democratic management: Joint stock companies have democratic management and control. That is, even though the shareholders are owners of the company, all of them cannot participate in ‘the management of the company. Normally, the shareholders elect representatives from among themselves known as ‘Directors’ to manage the affairs of the company.

KSEEB Solutions 1st PUC Business Studies Previous Year Question Paper March 2020 (South)

Question 37.
Explain the principles of Insurance.
Answer:
(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: If 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 the 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 the 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.

Examp1e 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’s 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. I 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: If 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 more 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.

Question 38.
Explain the merits and limitations of preference shares as a source of finance.
Answer:
Merits
(a) Preference shares provide reasonably steady income in the form of fixed rate of return and safety of the investment.
(b) Preference shares are useful for those investors who want a fixed rate of return with comparatively low risk.
(c) It does not affect the control of equity shareholders over the management as preference shareholders don’t have voting rights.
(d) Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.
(e) Preference shareholders have a preferential right of repayment over equity shareholders in the event of liquidation of a company.

Demerits
(a) Preference shares are not suitable for those investors who are willing to take risks and are interested in higher returns.
(b) Preference capital dilutes the claims of equity shareholders over assets of the company.
(c) The rate of dividend on preference shares is generally higher than the rate of interest on debentures.
(d) As the dividend on these shares is to be paid only when the company earns profit, there is no assured return for the investors. Thus, these shares may not be very attractive to investors.
(e) The dividend paid is not deductible from profits as an expense. Thus, there is no tax saving as in the case of interest on loans.

Question 39.
Explain the role of commerce and industry associations in the promotion of internal trade.
Answer:
(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 helpfùl 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 Previous Year Question Paper March 2020 (South)

Question 40.
Explain briefly the steps involved in the import procedure.
Answer:
(a) Trade inquiry: The importing firm approaches the export firms with the help of trade inquiry they collecting information about their export prices and terms of exports. After receiving a trade inquiry, the exporter will prepare a quotation called a proforma invoice.

(b) Procurement of import license: There are certain goods that can be imported freely, while others need licensing. The importer needs to consult the Export-Import (EXM) policy in force to know whether the goods that he or she wants to import are subject to import licensing.

(c) Obtaining foreign exchange: Since the supplier in the context of an import transaàtion resides in a foreign country, he/she demands payment in a foreign currency Payment in foreign currency involves the exchange of Indian currency into foreign currency.

(d) Placing order or indent: After obtaining the import license, the importer placeš an import order or indent with the exporter for the supply of the specified products. The import order contains information about the price, quantity size, grade, and quality of goods ordered and the instructions relating to packing, shipping, ports of shipment and destination, etc

(e) Arranging for finance: The importer should make arrangements in advance to pay to the exporter on the arrival of goods at the port. Advanced planning for financing imports is necessary so as to avoid huge demurrages (i.e., penalties) on the imported goods lying uncleared at the port for want of payments.

(f) Obtaining a letter of credit: If the payment terms agreed between the importer and the overseas supplier is a letter of credit, then the importer should obtain the letter of credit from its bank and forward it to the overseas supplier.

(g) Receipt of shipment advice: After loading the goods on the vessel, the overseas supplier dispatches the shipment advice to the importer. Shipment advice contains information about the shipment of goods.

(h) Retirement of import documents: Having shipped the goods, the overseas supplier prepares a set of necessary documents as per the terms of contract and letter of credit and hands it over to his or her banker for their onward transmission and negotiation to the importer in the manner as specified in the letter of credit.

(i) Arrival of goods: Goods are shipped by the overseas supplier as per the contract. The person in charge of the carrier (ship or airway) informs the officer in charge at the dock or the airport about the arrival of goods in the importing country. He provides the document called import general manifest. import general manifest is a document that contains the details of the imported goods.

(j) Customs clearance and release of goods: All the goods imported into India have to pass through customs clearance after they cross the Indian borders. Customs clearance is a somewhat tedious process and calls for completing a number of formalities. It is, therefore, advised that importers appoint C&F agents who are well versed with such formalities and play an important role in getting the good’s customs cleared.

Section – E (PRACTICAL ORIENTED QUESTIONS)

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

Question 41.
You are planning to start a new business. Make a list of any five factors you consider while selecting a suitable form of business organization.
Answer:
The five-factor that should be considered while selecting a suitable form of business organization are:
(a) Cost
(b) Liability
(c) Continuity
(d) Management ability
(e) Degree of control
(f) Capital consideration
(g) Nature of business.

Question 42.
As a businessman having concern for environmental protection. Suggest any five measures to control environmental pollution.
Answer:
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 Previous Year Question Paper March 2020 (South)

Question 43.
Being a consumer, name the types of large fixed retail shops.
Answer:
The types of large fixed retail shops:
(a) Departmental stores
(b) Chain stores
(e) Consumer cooperative stores
(d) Supermarket
(e) Mail order houses.

1st PUC Business Studies Model Question Paper 6 with Answers

Students can Download 1st PUC Business Studies Model Question Paper 6 with Answers, Karnataka 1st PUC Business Studies Model Question Papers with Answers helps you to revise the complete Karnataka State Board Syllabus.

Karnataka 1st PUC Business Studies Model Question Paper 6 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.
State a branch of commerce.
Answer:
The Branch of Commerce are:
(a) Industry
(b) Commerce

Question 2.
Name the form of business organization that is found only in India.
Answer:
Hindu undivided family business.

Question 3.
Mention any two forms of organizing public sector enterprises.
Answer:
The two types of form of organizing public sector enterprises are:
(a) Departmental undertaking.
(b) Statutory corporation. ,

Question 4.
Mention any one function of Insurance.
Answer:
Risk sharing.

Question 5.
What is B2B?
Answer:
B2B is a Business-To-Business Model in which transactions are done between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

Question 6.
e-Commerce does not include
(a) A business’s interactions with its suppliers
(b) A business’s interactions with its customers
(c) Interactions among the various departments within the business
(d) Interactions among the geographically .dispersed units of the business.
Answer:
(c) Interactions among the various departments within the business.

Question 7.
Mention any one element of business ethics.
Answer:
Top management’s commitment is one element of business ethics.

Question 8.
How many members have to sign a memorandum of Association in the case of a private company?
Answer:
2 members have to sign a memorandum of association in case of a private company.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 6 with Answers

Question 9.
What is business finance?
Answer:
An activity of business covered with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of the business.

Question 10.
Centralized control in MNCs implies control exercised by
(a) Branches
(b) Subsidiaries
(c) Headquarters
(d) Parliament
Answer:
(c) Headquarters

Question 11.
Expand KVIC.
Answer:
Khadi and Village Industries Commission (KVIC).

Question 12.
Reconstruction of sick public sector units is taken up by
(a) MOFA
(b) MoU
(c) BIFR
(d) None of the above
Answer:
(c) BIFR

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 objectives of the business.
Answer:
Objectives of business are:
(a) Economic objectives, i.e. earning profits.
(b) Social objectives, i.e. providing employment.

Question 14.
Give the meaning of partnership deed.
Answer:
The written agreement which specifies the terms and conditions that govern the partnership is called the partnership deed.

Question 15.
What is disinvestment in PSEs?
Answer:
The Government can sell its enterprises completely to the private sector or disinvest a part of its equity capital held by it to the private sector companies or in the open market is called disinvestment in PSEs.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 6 with Answers

Question 16.
Mention any two types of Banks.
Answer:
Commercial Banks and Co-operative Bank.

Question 17.
State any two benefits of e-business.
Answer:
Two benefits of e-business are:
(a) Global reach/access
(b) Convenience

Question 18.
State any two elements of business ethics.
Answer:
The elements of business ethics are:
(a) Publication of a code.
(b) Top management’s commitment.

Question 19.
Give the meaning of minimum subscription.
Answer:
In order to prevent companies from commencing business with inadequate resources, it has been provided that the company must receive applications for a certain minimum number of shares before going ahead with the allotment of shares. According to the Companies Act, this is called the minimum subscription’.

Question 20.
What do you mean by the fixed capital requirement of a business?
Answer:
The funds are required to purchase fixed assets like land and building, plant and machinery, etc. in order to start a business.

Question 21.
State any two parameters used to measure the size of the business.
Answer:
Several parameters can be used to measure the size of business units. These include the number of persons employed in business, capital invested in the business, the volume of output or value of the output of the business, and power consumed for business activities’.

Question 22.
Give the meaning of multiple shops.
Answer:
These are large-scale retail shops where they sell a similar range of commodities at the same price in all their shops. These shops are usually owned and run by big manufacturers/producers.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 6 with Answers

Question 23.
Define international business.
Answer:
According to Michael R. Czinkota, “International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of the individuals, companies, and organizations”. These transactions take on various forms which are often interrelated.

Question 24.
Give the meaning of proforma invoice.
Answer:
A proforma invoice is a document that contains details as to the quality, grade, design, size, weight, and price of the export product, and the terms and conditions on which their export will take place.

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 the causes of business risk.
Answer:
(a) Natural causes: There are certain natural factors like floods, earthquakes, etc. that can damage the business. Nature is uncontrollable, so any loss due to natural calamities is unavoidable.

(b) Competition: When a business has strong competitors in the market and the manufacture indulges in cutthroat competition by cutting down the price of the goods or by producing the cheap quality of the product, which is a great hazard for business.

(c) Change in demand for the product: Consumer’s taste and preferences; will keep on changing. These changes result in changes in demand for the products. This leads to business loss.

(d) Use of modern technology: If a company is financially strong, and uses modem technology for production, per unit cost of production of goods decreases. For small business units, it is not possible to do so. It makes small business units suffer.

(e) Human causes: Businesses may also suffer due to man-made causes such as theft, forgery, lavish expenditure of top management, embezzlement of cash, etc. which leads to business loss.

(f) Change in government policies: Government policies are unavoidable for business. If a sudden change comes in monetary and fiscal policies of the government which is not favour¬able for business will lead to business loss.

(g) Mismanagement: Sometimes management is not capable to run the business due to the important use of business risk. Due to improper planning, lack of attainment of planned objectives increases the risk. All these can lead to bad cash flow, an increase in per-unit cost, etc.

Question 26.
State any four features of departmental undertakings.
Answer:

  • Formation: These enterprises are established as departments of the ministry and are considered part or an extension of the ministry itself.
  • Control: The administration of these undertakings is directly under the control of the concerned ministry or minister.
  • Capital: The required capital is provided by the government in the annual budget.
  • Income: The income of these departments should be deposited daily into the government treasury.
  • Management: The employees of the enterprise are Government servants and they are headed by Indian Administrative Service (IAS) officers and civil servants who are transferable from one ministry to another.

Question 27.
State any four benefits of a statutory corporation
Answer:
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 a 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.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 6 with Answers

Question 28.
Briefly explain the scope of e-business.
Answer:
The scope of e-business:

  • B2B Business-To-Business: B2B is a Business-To-Business Model in which transactions are done between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.
  • B2C Business-To-Customer: B2C is Business-To-Customer in which Business transactions are conducted directly between a company and consumers who are the end-users of its products or services.
  • C2C Customer-To-Customer: Consumer-To-Consumer is a business model that facilitates the transaction of products or services between customers.
  • Intra-B Commerce: If parties involved in the electronic transactions are from within a business firm, then it is known as intra-B commerce.

Question 29.
State any four arguments for social responsibility.
Answer:
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. People prefer to buy products from a company that engages itself in various social welfare programs.

(b) Government Regulation: To avoid government regulations businessmen should discharge their duties voluntarily. For example, if any business firm pollutes the environment it will naturally come under strict government regulation, which may ultimately force the firm to close down its business. Instead, the business firm should engage itself in maintaining a pollution-free environment.

(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 responsi¬bility 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 30.
Explain any four clauses of the memorandum of association.
Answer:
(a) Name Clause: It contains the name by which the company will be established. The approval of the proposed name is taken in advance from the Registrar of the companies.

(b) Objects Clause: It contains a detailed description of the objects and rights of the company, for which it is being established. A company can undertake only those activities which are mentioned in the objects clause of its memorandum.

(c) Capital Clause: It contains the proposed authorized capital of the company. It gives the classification of the authorized capital into various types of shares, (like equity and pref¬erence shares) with their numbers and nominal value. A company is not allowed to raise more capital than the amount mentioned as its authorized capital. However, the company is permitted to alter this clause as per the guidelines prescribed by the Companies Act.

(d) Liability Clause: It contains a financial limit up to which the shareholders are liable to pay off to the outsiders in the event of the company being dissolved or closed down.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 6 with Answers

Question 31.
Explain the financial needs of a business.
Answer:
(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 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 pome unforeseen problems.

Question 32.
Explain the merits of retained earnings as a source of business finance.
Answer:
(a) Retained earnings are a permanent source of funds available to an organization.
(b) It does not involve any explicit cost in the form of interest, dividend, or floatation cost.
(c) As the funds are generated internally, there is a greater degree of operational freedom and flexibility
(d) It enhances the capacity of the business to absorb unexpected losses
(e) It may lead to an increase in the market price of the equity shares of a company.

Question 33.
Briefly explain the categories of enterprises as classified by MSMED Act, 2006.
Answer:
Small scale industry: A small-scale industrial undertaking is defined as one in which the investment in fixed assets of plant and machinery does not exceed rupees one crore.

Ancillary industry: The small-scale industry can enjoy the status of an ancillary small industry if it supplies not less than 50 percent of its production to another industry, referred to as the parent unit.

Export-oriented units: The small-scale industry can enjoy the status of an export-oriented unit if it exports more than 50 percent of its production.

Small scale industries owned and managed by women entrepreneurs: An enterprise pro¬moted by women entrepreneurs’ is a small scale industrial unit in which she/they individually or jointly have a share capital of not less than 51 percent.

Tiny industrial units: A tiny unit is defined as an industrial or business enterprise whose in¬vestment in plant and machinery is not more than Rs. 25 lakhs.

Small scale service and business enterprises: A small scale service and business enterprise are one whose investment in fixed assets of plant and machinery excluding land and building does not exceed Rs. 10 lakhs.

Microbusiness enterprises: Within the tiny and small business sector, micro-enterprises are those whose investment in plant and machinery does not exceed rupees one lakh.

Village industry: Village Industry has been defined as any industry located in a rural area that produces any goods, renders any service with or without the use of power, and in which the fixed capital investment per head or artisan or worker does not exceed Rs. 50,000

Question 34.
Explain any four services of wholesalers to the manufacturer.
Answer:
Wholesalers services to producers are:
(a) Facilitating large-scale production: Wholesalers collect small orders from a number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities. This enables the producers to undertake production on a large scale.

(b) Bearing risk: The wholesale merchants deal in goods in their own name, take delivery of the goods and keep the goods purchased in large lots in their warehouses. In the process, they bear lots of risks such as the risk of fall in prices, theft, pilferage, spoilage, fire, etc.

(c) Financial assistance: The wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payments for the goods purchased by them. To that extent, the manufacturers need not block their capital in the stocks.

(d) Expert advice: As the wholesalers are in direct contact with the retailers, they are in a position to advise the manufacturers about various aspects including customer’s tastes and preferences, market conditions, competitive activities, and the features preferred by the buyers.

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 features of Sole Proprietorship.
Answer:
(a) Easy formation and closure: The process of forming a sole trading concern does not require any legal formalities such as registration. Hence it can be easily formed, saves time, money, and effort information. Closure of the business can also be done easily as it does not require any legal formalities. Thus, there is easy information as well as the closure of business.

(b) Liability: The liability of a sole trader is unlimited. Hence for business debts, not only his business assets but also his private assets become liable.

(c) No sharing of profit and risk: The sole trader enjoys all the profits of the enterprise and similarly bears all the losses or risks involved in the business.

(d) Free from government regulation: The sole trading concern is not required to undergo any special legislation of legal formalities.

(e) Easy formation: The process of forming a sole trading concern does not require any legal formalities such as registration. Hence it can be easily formed, saves time, money, and effort information.

(f) Quick decision making: As the sole proprietor is not answerable to anyone, he can take quick and prompt business decisions while managing the affairs of the organization.

(g) Business secrecy: A sole trader can maintain business secrecy and can fully exploit new ideas that come to his mind.

(h) Personal contact with customers: A sole trader can establish personal contact with his customers which helps him to maintain good relations with them and also to look into their individual choices, like, and dislike.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 6 with Answers

Question 36.
What are services? Explain their distinct characteristics.
Answer:
A service is any activity of benefit that one party can offer to another that is essentially intangible and doesn’t result in the ownership of anything. Its production may or may not be tied to a physical product.
(a) Intangibility: Services are intangible we cannot touch them are not physical objects. A consumer feels that he has the right and opportunity to see, touch, hear, smell or taste the goods before they buy them. This is not applicable to services. The buyer does not have an opportunity to touch smell and taste the services. While selling or promoting a service one has to concentrate on the satisfaction and benefit.

(b) Perishability: Services are deeds, performance, or acts whose consumption takes place simultaneously hence services cannot be stored, saved, returned, or resold once they have been used. Once rendered to a customer the service is completely consumed and cannot be delivered to another customer.

(c) Heterogeneity: Services are highly variable, as they depend on the service provider, and where and when they are provided. Service marketers face a problem in standardizing their service, as it varies with an experienced hand, customer, time, and firm. Service buyers are aware of this variability. So, the service firms should make an effort to deliver high and consistent quality in their service.

(d) Inseparability or Simultaneous Production and Consumption: Services are typically produced and consumed simultaneously. In the case of physical goods, they are manufactured into products, distributed through multiple resellers, and consumed later. But, in the case of services, it cannot be separated from the service provider. Thus, the service provider would become a part of a service.

(e) Lack of ownership: Lack of ownership is a basic difference between the service industry and a product industry because a customer may only have access to or use a facility but does not have any rights to secure ownership of the service. Payment is for the use of, access to, or hires of items.

Question 37.
Write a detailed note on various facilities offered by the Indian Postal Department.
Answer:
The postal services can be classified into two types:
(a) Mail services
(b) Financial services

Mail Services: Indian postal services are mainly concerned with the collection, sorting, and distribution of letters, parcels, packets, etc. Besides, a number of other services are also provided to the general public as well as business enterprises:
(a) Speed Post: Under this service, letters, documents and parcels are delivered faster, i.e., within a fixed time frame. This facility is available at specific post offices.

(b) Registered Post: To ensure that our mail is definitely delivered to the addressee otherwise it should come back to us. In such situations, the post office offers a registered post facility through which we can send our letters and parcels.

(c) Value Payable Post (VPP): The value payable system is designed to meet the requirements of persons who wish to pay for articles sent to them at the time of receipt of the articles or of the bills relating to them, and also to meet the requirements of traders and others who wish to recover, through the agency of the Post Office the value of article supplied by them.

(d) Electronic Money Order (EMO): EMO is the Money Order issued by the computerized Post Office for the payment of a sum of money to the “Payee” by the “Remitter” electronically. Data is transmitted electronically to the destination Post Office. Money is paid at the doorstep of the Payee by cash. The receiver has to submit identity proof.

(e) Instant Money Order (IMO): IMO is an instant web-based money transfer service through Post Offices (IMO Centre) in India between two resident individuals in the Indian Territory. The receiver has submitted 16 digit code as well as identity proof.

(f) E-Post: E-Post sends messages as a soft copy through the internet and at the destination, it will be delivered to the addressee in the form of a hard copy.

(g) Express Parcel Service: Express parcel is the ideal service for sending the parcel up to 3 5 kg within India. It is a service where the parcel will be picked from the doorstep of the customer and delivered to the doorstep of the receiver.

(h) Electronic Mail Service: Electronic mail is a method of exchanging messages from an author to one or more recipients.

Financial Services
(a) Public Provident Fund (PPF): Public Provident Fund (PPF) is a savings-cum tax-saving instrument in India. It also serves as a retirement-planning tool for many of those who do not have any structured pension plan covering them.

(b) Kisan Vikas Patra (KVP): Kisan Vikas Patra is a saving scheme that was announced by the Government of India that doubles the money invested in eight years and seven months.

(c) National Savings Certificate (NSC): National Savings Certificates popularly known as NSC is a saving bond, primarily used for small savings and income tax saving investments in India.

(d) Senior Citizen Savings Scheme (SCSS): The account may be opened by an individual:

  • Who has attained the age of 60 years or above on the date of opening of the account?
  • Who has attained the age 55 years or more but less than 60 years and has retired.

(e) Recurring Deposit account: In a recurring deposit account certain fixed amount is invested every month for a specified period and the total amount is repaid with interest at the end of the particular fixed period.

(f) Saving Bank Account: Saving bank account are introduced by the bank to mobilize small saving of low and middle-income group of people. The ‘saving account’ is generally opened in the bank by salaried persons or by persons who have a fixed regular income.

(g) Fixed deposit account: Fixed deposit means the money deposited by a customer with a bank for a fixed period of time for a fixed rate of interest. Fixed deposit is repayable on the expiry of a specified period of time.

Question 38.
What are retained earnings? Explain its merits and demerits.
Answer:
The company generally does not distribute all its earnings amongst the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as retained earnings.

Merits:
(a) Retained earnings are a permanent source of funds available to an organization.
(b) It does not involve any explicit cost in the form of interest, dividend, or floatation cost.
(c) As the funds are generated internally, there is a greater degree of operational freedom and flexibility.
(d) It enhances the capacity of the business to absorb unexpected losses.
(e) It may lead to an increase in the market price of the equity shares of a company.

Demerits
(a) Excessive plowing back may cause dissatisfaction amongst the shareholders as they would get lower dividends.
(b) It is an uncertain source of funds as the profits of the business are fluctuating.
(c) The opportunity cost associated with these funds is not recognized by many firms. This may lead to sub-optimal use of the funds.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 6 with Answers

Question 39.
Who is a wholesaler? Explain services of wholesalers to the manufacturer.
Answer:
A wholesaler is an intermediary entity in the distribution channel that buys in bulk and sells to resellers rather than to consumers.
(a) Facilitating large-scale production: Wholesalers collect small orders from a number of retailers and pass on the pool of such orders to manufacturers and make purchases in bulk quantities. This enables the producers to undertake production on a large scale.

(b) Bearing risk: The wholesale merchants deal in goods in their own name, take delivery of the goods and keep the goods purchased in large lots in their warehouses. In the process, they bear lots of risks such as the risk of fall in prices, theft, pilferage, spoilage, fire, etc.

(c) Financial assistance: The wholesalers provide financial assistance to the manufacturers in the sense that they generally make cash payments for the goods purchased by them. To that extent, the manufacturers need not block their capital in the stocks.

(d) Expert advice: As the wholesalers are in direct contact with the retailers, they are in a position to advise the manufacturers about various aspects including customer’s tastes and preferences, market conditions, competitive activities, and the features preferred by the buyers.

(e) Help in the marketing function: The wholesalers take care of the distribution of goods to a number of retailers who, in turn, sell to a large number of customers spread over a large geographical area. This relieves the manufacturers from marketing activities and enables them to concentrate on the production activity.

(f) Facilitate continuity: The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when they are produced.

(g) Storage: Wholesalers take delivery of goods when these are produced in a factory and keep them in their godowns. This reduces the burden of manufacturers of providing storage facilities for the finished products.

Question 40.
Explain the scope of international business.
Answer:
Merchandise exports and imports: Merchandise means goods that are tangible, i.e. those that can be seen and touched. When viewed from this perceptive, it is clear that while merchandise exports mean sending tangible goods abroad, merchandise imports mean bringing tangible goods from a foreign country to one’s own country.

Service exports and imports: Service exports and imports involve trade in intangibles. It is because of the intangible aspect of services that trade in services is also known as invisible trade. A wide variety of services are traded internationally and these include tourism and travel, boarding and lodging, etc.

Licensing and franchising: Permitting another party in a foreign country to produce and sell goods under your trademarks, patents, or copyrights in lieu of some fee is another way of en¬tering into international business.

Foreign investments: Foreign investment is another important form of international business. Foreign investment involves investments of funds abroad in exchange for financial return.

Foreign investment can be of two types:
(a) Direct investments: Direct investment provides the investor a controlling interest in a foreign company. This is otherwise known as Foreign Direct Investment, i.e., FDI.

(b) Portfolio investments: A portfolio investment, on the other hand, is an investment that a company makes into another company by the way of acquiring shares or providing loans to the latter and earns income by way of dividends or interest on loans.

Section – E (PRACTICAL ORIENTED QUESTIONS)

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

Question 41.
As the owner of a business unit, what risks do you face in running it?
Answer:
The risk faced by the owner while running a business unit are :
(a) Internal risk
(b) External risk
(c) Speculative risk
(d) Pure risk
(e) Static risk
(f) Dynamic risk
(g) Insurable risk
(h) Non-insurable risk

Question 42.
As an online buyer, mention any five information-intensive products that can be delivered electronically to your computer.
Answer:
The five information-intensive products that can be delivered electronically are:
(a) Electronic Products
(b) Home Appliances
(c) Books
(d) Cosmetics
(e) Daily needs.

KSEEB Solutions 1st PUC Business Studies Model Question Paper 6 with Answers

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