Class 11 Question Paper 2025 Business Studies

ANNUAL EXAMINATION

Question Paper
2025
NCERT BASED SYLLABUS

FOR CBSE AND STATE BOARD
FOLLOWING NCERT

KVS QUESTION PAPERS

Annual Exam 2025 Question Paper

SESSION ENDING EXAMINATION 2024-25
CLASS: XI​ ​ ​ ​ ​ ​ ​ SUBJECT: BUSINESS STUDIES
TIME: 3 HOURS​ ​ ​ ​ ​ ​ ​ ​ M. MARKS: 80

General Instructions:
i.​ Answer to questions carrying 1 mark may be from one word to one sentence.
ii.​ Answer to questions carrying 3 marks may be from 50 to 75 words.
iii.​ Answer to questions carrying 4 marks may be about 150 words.
iv.​ Answer to questions carrying 6 marks may be about 200 words.
v.​ Attempt all parts of a question together
Q No Marks

1 Companies generally invite public deposit for a period 1
upto______________
(a)​ Three years
(b)​ four years
(c)​ five years
(d)​ six years

2 JKL Ltd. is charging very low price which is just covering their cost so 1
that it can remain in competitive market. JKL Ltd. Is achieving which
organizational objective.
(a)​ Survival
(b)​Profit
(c)​ Growth
(d)​None of the above
OR
The economic activity in which there is no need of capital is:
(a)​ Business
(b)​Profession
(c)​ Employment
(d)​both B and C

3 Which of the following source of finance does not create any charge 1
against the asset of a company:
(a)​ Equity shares and debentures
(b)​preference shares and debentures
(c)​ equity shares and preferences shares
(d)​none of the above

4 An organization is working for the purpose of public welfare under a 1
ministry of government. It is financed by annual budget of government
and all its income is deposited in government treasury. Identify which kind
of public sector enterprise is it.
(a) Statutory Corporation

Annual Exam 2025 Question Paper

(b)Departmental Undertaking​
(c) Government Company
(d) Multi-national Corporation

5 The capital of the company is divided into number of parts each one of 1
which are called:
(a)​ Dividend
(b)​Profit
(c)​ Interest
(d)​Share

6 In which case of manufacturing enterprises investment in plant and 1
machinery is more than 10 crores but does not exceed 50 crores?
(a)​ Micro enterprises
(b)​small enterprises
(c)​ medium enterprises
(d)​none of these

7 Retailers who sell their goods in weekly markets are known as. 1
(a)​Cheap jacks
(b)​Hawkers
(c)​Market traders
(d)​Pavement Vendors
OR
Chairperson of the GST council is:
(a)​President
(b)​ Finance Minister
(c)​ Prime Minister
(d)​ none of these

8 _______________ represents that form of retailing in which business 1
transaction are conducted through postal communication without any
personal contact with the buyer.
OR
In case of chain stores there is no fear of bad debts as all the sales are
made on _______________basis.

9 _______________ is one with his payable after a specified period of time 1
like a ‘time bill’. Bank usually provide loan against this security of such
hundis.
(a)​ Muddati hundi
(b)​Shahjog hundi
(c)​ Namjog hundi
(d)​Firmanjog hundi
OR

Annual Exam 2025 Question Paper

------------------- was an important center for export of wool and import of
horses. It had a huge share in commercial transaction between India China
and Rome in the first century A.D.
(a)​ Takshila
(b)​Indraprastha
(c)​ Mathura
(d)​Peshawar

10 Read the following statements: Assertion and Reason. Choose one of the 1
correct alternatives given below:
Assertion (A): Letter of credit is the most appropriate and secured method
of payment to settle international transaction.
Reason (R): Letter of credit is a guarantee issued by the exporter’s bank.
(a)​ Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).
(b)​Both Assertion (A) and Reason (R) are true and Reason (R) is not
the correct explanation of Assertion (A).
(c)​ Assertion (A) is true but Reason (R) is False
(d)​Assertion (A) is False but Reason (R) is True

11 An enterprise having huge capital, huge turnover and its branches are 1
spread all over the country. What do we call such kinds of enterprises?
(a) Joint venture (b) Global enterprise
(c) Large corporation (d) Huge company

12 Read the following statements: Assertion and Reason. Choose one of the 1
correct alternatives given below:
Assertion (A): According to principle of subrogation the insured should
not be allowed to make any profit by selling damaged property or in the
case of lost property being recovered.
Reason(R): The principle of subrogation is a corollary to the Principle of
Indemnity and the damaged goods will belong to the insurance company,
once the compensation is paid. It also states that insurance is not a contract
of making a profit.
(a) Both Assertion and Reason are correct and the Reason is a correct
explanation of the Assertion.
(b) Both Assertion and Reason are correct but Reason is not a correct
explanation of the Assertion.
(c) The Assertion is correct but Reason is incorrect.
(d) Both the Assertion and Reason are incorrect.

13 Match the statement given under A with the correct option given under B 1
A B
1. Departmental undertaking A. State authority of India limited
2. Government company B. life insurance corporation
3. statutory Corporation C. post and telegraph department

Annual Exam 2025 Question Paper

(a)​ 1(A);2(B);3(C)
(b)​1(C);2(A);3(B)
(c)​ 1(B);2(A);3(C)
(d)​1(C);2(B);3(A)

14 ________________ is a document prepared by the shipping company to 1
acknowledge the receipt of goods on board the ship and gives an
undertaking to carry them to the port of destination.
(a)​ letter of credit
(b)​Certificate of origin
(c)​ commercial invoice
(d)​ bill of lading

15 Priya has been recently promoted to class 12. She sold her books of class 1
11 on www.buynsellbooks.com. is an example of
(a)​ B2B Commerce
(b)​C2C Commerce
(c)​ Intra B Commerce
(d)​ B2B commerce

16 _________________ are the individuals with surplus cash who have keen 1
interest to invest in upcoming startups, they also offer mentoring or advice
alongside capital.
(a)​ Crowdfunding
(b)​ Angel investment
(c)​ venture capital
(d)​ business incubators and accelerators

17 ‘To Adopt fair trade policies and practices’, is an example of social 1
responsibilities towards:
(a)​ Government
(b)​Shareholders
(c)​ Community
(d)​Employees

18 Which of the following instrument saves taxes: 1
(a)​ Retained earnings
(b)​preferences shares
(c)​ debentures
(d)​equity shares

19 Which of the following points highlight the role of a small-scale business 1
in development of the country?
(a)​ Promotes balance regional development
(b)​employment generation
(c)​ low cost of production
(d)​ all of above

Annual Exam 2025 Question Paper

20 Read the following statements: Assertion and Reason. Choose one of the 1
correct alternatives given below:
Assertion (A): Borrowed fund are the permanent source of finance.
Reason (R): Borrowed funds are under legal obligation to pay interest
even in case of losses.
(a)​ Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).
(b)​Both Assertion (A) and Reason (R) are true and Reason (R) is not
the correct explanation of Assertion (A).
(c)​ Assertion (A) is true but Reason (R) is False.
(d)​Assertion (A) is False but Reason (R) is True.

21 Tavi was a successful businesswoman and owned a departmental store she 3
was aware of the fact that the profit is reward of risk bearing. So, in order
to earn more profits, she opened two more departmental stores and
employed a team of young staff to look after the stores. Initially the staff
was very sincere and Tavi earned huge profit from her three departmental
stores. However, over the last two years her business is running into
losses. On close analysis she found that her staff was not giving much
attention to customers. Moreover, there were many causes of
embezzlement, misappropriation of fund by the employees.
A.​ Identify and explain the main cause behind the losses in Tavi’s
business.
B.​ Also state two more causes of business loss other than identified in
part A of question

22 Discuss the various points of difference between equity shares and 3
preference shares (any three)
OR
Explain briefly the features of debenture as a method of raising finance
(any three)

23 Shankar is a dealer of used books and run a shop under the name of Om 3
Bookshop in Kamla Nagar Lucknow as the book shop is located within the
area of Lucknow University it is very famous among the college student as
they can get the used books in good condition and that to at a price much
less than the MRP.
A.​ Shankar will be classified as which type of retailer.
B.​ Identify the category of the type of retail trade as identified in part
A of the question under which Shankar should be placed.
C.​ State any two features of the type of retailer as identified in part B
of the question.

24 State and explain various reasons why international business is beneficial 3
to nations. (any three)
OR

Annual Exam 2025 Question Paper

There are various complexities or problems involved in international
business explain any three problems that are faced in international
business.

25 Business ethics refers to moral principle or rules of behavior which should 4
govern moral conduct of business, it is beneficial for both business
enterprise and society. In the light of the above statement explain various
essential elements of business ethics.

26 Explain various types of industries with example. 4
OR
Explain briefly various auxiliaries to trade.

27 Bharat Heavy Electricals Ltd BHEL owned and founded by Govt of India 4
is an engineering and manufacturing company based in New Delhi, India.
It was established in 1964. BHEL is India’s largest power generation
equipment manufacturer. It is managed by board of directors nominated by
government. As government is the majority shareholder it exercises
control over affairs of the company.
How will you classify BHEL as a form of public sector enterprise also
state
Any three merits of this type of public sector enterprise.

28 There are various types of intellectual property rights which have been 4
recognized in India. Identify the ‘Type’ in the following statement.
1.​ It represents collective goodwill of a geographical reason which
has built itself over centuries.
2.​ It is a protection given to aesthetic appearance or eye-catching
features and term of its protection is valid for 10 years.
3.​ It is an exclusive right granted by the government which provide
the exclusive right to exclude all other and prevent them from
making, using, offering for sale, selling or importing the
inventions.
4.​ It is an exclusive right of the creator to prohibit the unauthorized
use of the content which include reproducing and distributing
copies of the subject matter.

29 Explain the concept and benefits(any 3) of e-business. 4
OR
Discuss the scope of E- Business.

30 Pradeep wants to export auto spare parts to Mr. David in Switzerland. Mr. 4
David has asked for an inquiry to seek information about availability of
goods, price, quality and terms and condition for export of goods. In
response to inquiry Pradeep sent a reply in the form of proforma invoice.
Mr. David found the price and terms and condition acceptable. So, he
places the order for goods. After verifying the creditworthiness of Mr.

Annual Exam 2025 Question Paper

David, Pradeep obtains an export license and arranges the pre shipment
finance.
On the basis of given case study explain next 4 steps to be followed by
Pradeep related to procedure of export trade.

31 Define banking. Explain various types of bank account. 6
OR
Explain the following principles of insurance with example:
1.​ Principle of cause Proxima
2.​ Principle of contribution
3.​ Principle of subrogation
4.​ Principle of Mitigation
5.​ Principle of Indemnity
6.​ Principle of Insurable interest

32 Champak deals in cosmetics on large scale. He buys the goods in bulk 6
directly from the manufacturers and supply the same to the shops. He does
not deal directly with the customers. Champak also provides financial
support to manufacturers by making payment in advance while placing the
order. On the basis of given information answer the following questions:
A.​ In which type of business Champak is engaged?
B.​ Champak is serving an important link between the two parties.
Identify the two parties.
C.​ Discuss the services rendered by Champak to anyone party
identified in part B. (any four)

33 “It is said to be an artificial person created by law, having a separate 6
entity with perpetual succession & common seal.”
A.​ Identify the form of business organization mentioned above.
B.​ Explain the features of form of business organization identify
above (any 5)
OR
What do you mean by sole proprietorship firm? Explain its any three
merits and two limitations.

34 This source of finance is used by the company for long term fund 6
generation as do not carry any special or preferential rights in respect of
payment of annual dividend and repayment of capital moreover these
funds are also not secured by any assets of the company.
A.​ Identify the source of finance discussed in above paragraph.
B.​ Explain various features of source of finance identified in part A of
the question. (any five)

Annual
AnnualExam
Exam2025
2025Marking
QuestionScheme
Paper
SESSION ENDING EXAMINATION 2024-25
CLASS: XI
SUBJECT: BUSINESS STUDIES
MARKING SCHEME
Time: 3 hours ​​ ​ ​ ​ ​ ​ ​ ​ M.M 80
1.​ A.Three years 1

2.​ Survival 1
Or
Employment

3.​ C. equity shares and preferences 1

4.​ B. Departmental Undertaking 1

5.​ D. share 1

6.​ (c) medium enterprises 1

7.​ c)Market traders 1
Or
b)​ Finance minister

8.​ Mail order houses 1
OR
Cash
9.​ Muddati hundi 1
OR
Peshawar
10.​ c) Assertion (A) is true but Reason (R) is False 1

11.​ (b) Global enterprise 1

12.​ (a) Both Assertion and Reason are correct and the Reason is a correct 1
explanation of the Assertion.
13.​ (b) 1(C);2(A);3(B) 1

14.​ d)bill of lading 1

15.​ (b) C2C Commerce 1

16.​ B. Angel investment 1

17.​ A.​ government 1

18. C. debentures 1

19. D) All of above 1

20. D. Assertion (A) is False but Reason (R) is True. 1
Annual
AnnualExam
Exam2025
2025Marking
QuestionScheme
Paper
21 Human causes ( 1 mark identification and 1 marks for explanation) 3
Natural causes, economic causes and any other (1/2+1/2 )
22 Any three difference one mark each (any other relevant answer) 3

OR
Features of debentures:
Borrowed fund, compulsory payment of interest, no voting right, security,
redemption of debentures, economical (Any three feature with explanation
½ for heading ½ for explanation)
23 Fixed shop retailer (1 mark) 3
second hand good shop (1 mark)
any two features of second hand good shop (½ + ½)
24 Benefit of international business to nation: 3
Earning of foreign exchange, more efficient use of resources, improving
growth prospect and employment potential, increased standard of living or
any other. (any three with explanation one mark each)
OR
Disadvantages of international business:
Different currencies, legal formalities, distance barrier, language barrier,
difference in law, transportation problem or any other. (any three with
explanation one mark each)
25 Elements of business ethics: 4
top management commitment, publication of code, establishment of
compliance mechanism, involving employees at all levels, measuring results
(Any four elements with explanation ½ for heading ½ for explanation)
26 Types of industries: 4
primary industry, secondary industry, tertiary industry with example (½ for
heading ½ for explanation)
OR
Auxiliaries to trade:
transport and communication, banking and finance, insurance, warehousing,
advertising. (Any four auxiliaries with explanation ½ for heading ½ for
explanation)
27 Government company 4
Merits
Separate entity
Full autonomy
Reduces unhealthy business practices or any other
(½ for heading ½ for explanation)
28 various types of intellectual property rights are: 4

1.​ Geographical indication
Annual
AnnualExam
Exam2025
2025Marking
QuestionScheme
Paper
2.​ Design
3.​ patent
4.​ copyright

29 4
E-business refers to carrying on business activities through internet. It
includes electronic transaction related to industry, commerce and trade.
Benefits of E-business
1.​ Easy to form and Lower investment is required
2.​ Convenience
3.​ Speed
4.​ Global Reach
5.​ Cost saving
6.​ Movement towards a paperless society( ½ for heading ½ for
explanation, any 3)
OR
Scope of E- Business
1.​ B2B Commerce
2.​ B2C Commerce
3.​ C2C Commerce
4.​ Intra – B Commerce(½ for heading ½ for explanation, any 3)

30 The next steps to be followed by Pradeep in export trade are: 4
1.​ Production or procurement of goods
2.​ Pre-shipment inspection
3.​ exercise clearance
4.​ obtaining certificate of origin
(½ for heading ½ for explanation)

31 A banking company in India is the one which transacts the business of 6
banking which means accepting, for the purpose of lending and investment
of deposits of money from the public, repayable on demand or otherwise
and withdrawable by cheques, draft, order or otherwise. In simple terms,
a bank accepts money on deposits, repayable on demand and also earns
a margin of profit by lending money. (1mark)
Types of bank account :
1.​ saving account
2.​ current account
3.​ fixed deposit account
4.​ recurring deposit account
5.​ multiple option deposit account

(½ for heading ½ for explanation)
OR
1.Proximate cause: ‘Causa Proxima or closest cause is another name for
proximate cause. When a loss is caused by two or more causes, this principle
applies. The insurance company will investigate the most recent cause of
loss. The insurer must pay compensation if the proximate cause is the one
for which the property is insured. If it is not a cause for which the property is
insured, the insured will not be compensated.

2.Contribution: Contribution creates a symbiotic relationship between all of
Annual
Annualengaged
the insurance contracts Exam
Exam2025
2025 Marking
Question
in an Scheme
Paper
incident or dealing with the same
subject. Contribution permits the insured to seek indemnity from all of the
insurance contracts involved in their claim to the amount of real loss.
3.Subrogation: Subrogation occurs when one creditor (the insurance
company) takes the place of another (another insurance company
representing the person responsible for the loss). After the insured
(policyholder) has been reimbursed for a loss on an insured piece of
property, the insurer gains possession of the property.
4.Mitigation’. According to this principle, it is the duty of the insured to take
reasonable steps to minimize the loss or damage to the insured property.
5. Indemnity: this principle states to put the insured in the event of loss in
the same position that he occupied immediately before the happening of the
event.
6. Insurable interest: the insurer must have an insurable interest in the
subject matter of the insurance. (1 mark each)

32 AChampak Is engaged in wholesale trade. (1 mark) 6
B.The two parties are manufacturer and retailers. ( ½ + ½ )
C.Services of wholesalers to manufacturers:
facilitate large scale production, bearing risk, financial assistance, expert
advice, help in marketing function, facilitate continuity of production,
warehousing. (Or any other one mark each with explanation)
OR
Services of wholesalers to retailers:
availability of goods, marketing support, grant of credit , specialized
knowledge, risk sharing, transportation facility. (Or any other one mark each
with explanation)

33 A.Joint stock company (1 mark) 6
B.features of joint stock company:
Artificial person
separate legal entity
limited liability
expensive and complicated formation process
perpetual succession
controlled by board of directors
common seal (Any five with explanation one mark each)
OR​
sole proprietorship refers to a form of business organization which is owned
managed and controlled by an individual who is the recipient of all profit
and bearer of all risk. (1 mark)
Merits of sole proprietorship:
quick decision making, confidentiality of information, direct incentive, sense
of accomplishment, ease of formation and closure.
(Any three with explanation one mark each)
limitations of sole proprietorship:
limited resources, lack of business continuity, unlimited liability, limited
managerial ability (Any two with explanation one mark each)

34 Equity shares (1mark) 6
features of equity shares:
risk beer capital
voting rights
limited liability

long term source of finance
limited liability Annual
AnnualExam
Exam2025
2025Marking
QuestionScheme
Paper
return etc.
(½ for heading ½ for explanation)

QUESTION PAPERS
GET PREVIOUS YEAR QUESTION PAPERS FOR ALL CLASSES FOR CBSE, ISCSE, ISC AND ALL ALL
STATE BOARDS HERE AT

Andhra Pradesh Board Question Papers
BOARD
WISE Assam Board Question Papers
Bihar Board Question Papers
Chhattisgarh Board Question Papers
Goa Board Question Papers
Gujarat Board Question Papers
Haryana Board Question Papers
Himachal Pradesh Board Question Papers
J&K State Board Question Papers
Jharkhand Board Question Papers
Karnataka Board Question Papers
Kerala Board Question Papers
Madhya Pradesh Board Question Papers
Maharashtra State Board Question Papers
Manipur Board Question Papers
Meghalaya Board Question Papers
Mizoram Board Question Papers
Nagaland Board Question Papers
Orissa Board Question Papers
Punjab Board Question Papers
Rajasthan Board Question Papers
Tamil Nadu Board Question Papers
Telangana State Board Question Papers
Tripura Board Question Papers
Uttarakhand Board Question Papers
Uttar Pradesh (UP) Board Question Papers
West Bengal (WB) Board Question Papers