Kerala Plus One Answer Key 2025 Business Studies

ANSWER KEY
FITTSTYEAR HIGIIERSECONN RYEX MIN TION.M RCH2025
PART III
STJBJECT: BUSINESS STUDIES
CoDE: FY - 348
Maximum:80 Scores. Time: 2 ra Hours
Qn Sub. Answer Key / Value Point Score Total
No Qns Score

I (d) Business risk. 1 1
2 (b) Co-operative society 1 L
3 Public Private Pannership. 1 I
4 @) Innovative.
1 1

5 (c) C2C 1 t
6 (d) Discretionary. 1 1

7 (b) Public company. t L
1 1
8 Dividend.
9 ltinerant Retailers/ Itinerant Tladers
1 I
10. (a) BilI of enry
t 1

U2
11.
Each
Primary Industry Secondary industry Tertiary (l/2 x 2
Extractive Genetic Manufacturing Construction 4)

Hunting Fish-hatchery Sugar Transportation
Elements of business ethics
L2. (i) Top management commitment
(ii) Publication of a 'Code' 1 2
(iii) Establishment of compliance mechanism 1
(iv) tnvolving employees at all levels
(v) Measuring results (Anv two ooints onlvl
13 Functions of Promoters
(i) Identification of business opportunity U2 2
(ii) Feasibility studies Each
(iii) Name approval (tl2 x
(iv) Fixing up Signatories to the Memorandum of Association, 4)
(v) Appointrnent of professionals,
(vi) Preparation of necessary documents. (Anv
L4 Privileges of a nreference shareholder:
i. Right to get the dividend first at a fixed rate, before it is given to the equity shareholders. 1
2
ii. Right to get the repaJrment of capital on winding up, before it is paid to the equity 1
shareholders.
Characteristics of Entrepreneurship:
1_5 (i) Systematic Activity
(ii) Lawful and PurposefulActivity Lt2
2
(iii) Innovation, Each
(iv) Organisation of Production (l/2 x
(v) Risk+aking 4\
(Any four points only)

16 Modes of entry into TnteFnational Rusiness
U2 2
(i) Exporting and Importirfg, (ii) Conuact Manufacturing,(iii) Licensing and Franchising
, Each
(iv) Joint Ventures , (v) Wlrolly Owned Subsidiaries . (Any four poina only)
(ll2 x
4)

Lt5

Answer any 5 questions from 17 to 22. Each carries 3 score (5 x 3= 15)
t7 Features of partnershtl
(a) Formation : Formed on the basis of a legal agreement. 3
(U) l,iabllity : The partners of a firm have unlimited liability. 1
(c) Continuity : Partnership is characterised by lack of continuity 1
1

18 Indian Railway comes under Departmental undertaking.
Feafitres 1

(i) The funding of these enterprises come directly from the Government Treasury and are an
annual appropriation from the budget of the Government.
(ii) They are subject to accounting and audit controls applicable to other Govemment activities. 1-+L 3
iii) The employees of the enterprise are Govemment seryants,
(iv) It is generally considered to be a major sub division of the Government depaftnent and is
subject to direct control of the ministry,
(v) They are accountable to the ministry. (Any two points on[)

19 Steps in Capital Subscription
(D SEBI Approval
(ii) Filing of Prospectus 1

(iii) Appoinunent of Bankers, Brokers, Underwriters 1 3
(iv) Minimum Subscription 1

(v) Application to Stock Exchange
of Shares ( Anv three aoints onlv)

20 Problems of MSME
(i) Finance
(ii) Raw materials
(iii) Managerial skills L
(iv) Marketing, 1 3
(v) Qualrty, 1

(vi) Capacity utilisation,
(vii) Global competition ( Any 3 poins with explanatioq if poina only half score each)
F.{tort Procedure
2r. (i) Receipt of enquiry and sending quotations.
(ii) Receipt of order or indent.
(iii) Assessing the importer's creditworthiness and securing a guarantee for payments.
(iv) Obtaining export licence.
(v) Obtaining pre-shipment finance.
(vi) Production or procruEment of goods.
(vii) Pre-shipment inspection.
(viii) Excise clearance.
(ix) Obtaining certificate of origin.
(x) Reservation of shipping space.
(xi) Packing and forwarding. U2
(xii) Insurance of goods. each 3
(xiii) Customs clearance. Gn
x6)
(xiv) obtaining mates receipt.
(xv) Payment of freight and issuance of bill of lading.
(xvi) Preparation of invoice.
(xvii) Securing payment. (Any sixpoinr only)

22 Retained earnings:
A portion of the net eamings may be retained in the business for use in the future. This is
1
known as retained eamings. It is a source of internal financing or self-financing or 'ploughing
back of profits'.
Merits:
i. It is a permanent source of funds available to an organisation. 3
ii. It does not involve any explicit cost in the form of interest, dividend or floatation cost.
1+L
Iii. There is a greater degree of operational freedom and flexibility.

2ts

iv. It enhances the capacfy of the business to absorb unexpected losses.
v. It may lead to increast in the market price of the equity shares of a company. (Any twopoints
only)

Answer any 4 ouestions from 23 to 27. Each carries 4 score (4 x 4 = 16).
23 u2
Merits and Demerits of Solq Proprietorship
Merits: Each
(i) Quick decision making, (ll2x
(ii) Confidentiality of information, 4=2)
(iii) Direct incentive,
(iv) Sense of accomplishment, 4
(v) Ease of formation and closure, (Any four points ) U2
Demerits: Each
(Ll2x
(i) Limited resources, q=2)
(ii) Limited Iife of a business concem,
(iii) Unlimited liability,
(iv) Limited managerial abiliry. (Anvfour aoina)
1
24 Global enterprises rlVlulti National Corporations (MNCs)
Global enterprises are huge industrial organisations which extend their industial and
marketing operations thmugh a network of their branches in several counfties.
Features: 4
(i) Huge capital resources u2
Each
(ii) Foreign collaboration
(L/2 x
(iii) Advanced technology
6=3)
(iv) Product innovation
( v ) Marketing stategies
(vi) Expansion of market tenitory
(vii) Centralised control. ( Any six points only)

Functions of Commercial Banks
25 (i) Acceptance of deposis
1
(ii ) Lending of funds
each
(iii) Cheque facility 4
(1 xa)
(iv) Remittance of funds.
(v) Allied services (Any 4 poinawilh explanatiory if points only half score each)

A B
26
Trade Credit 4 Credit transaction L
b Factoring 3 Commission 1

c Leasing 1 Contractual agreement 4
1
d Commercial Paper 2 Unsecured 1_

TYpes of small scale fixed shop retailers
27 (i) General stores
(ii) Speciality shops 4
(iii) Street stall holders 1

(iv) Second-hand goods shop (points only half score each) 1
1

Answer any 3 questions from 28 to 31. Each carries 5 score (3 x 5= 15) I
Business.
28 tr'eatures of Business
(i) An economic activity,
1
(ii) Production or proculement of goods and services,
(iii) Sale or exchange of goods and services, 5
1
(iv) Dealings in goods and services on a regularbasis,
each

3/s

(v) Profit earning, (7x4
(vi) Unceruinty of retum:, =4)
(vii) Element of risk. (Any 4 pointswith explanation, if poina only half score each)

Benefits of E-Business
(i) Ease of formation and lower invesunent requirements
29 (ii) Convenience
(iii) Speed 1
(iv) Global reach/access 1 5
(v) Movement towards a paperless society (point only half score each) 1

Social responsibilisr of b,rtirr"o 1
30
Social responsibility of business refers to its obligation to take those decisions and perform
those actions which are desirable in terms of the objectives and values of our society.
Responsibility towards the shareholders or owners : 1
(i)It ensures fair return to the shareholders or owners on their capiul investment.
(ii) To ensure the safety of their investment.
(iii) To provide the shareholders with regular, accurate and full
information about its working as well as schemes of future growth. (Any one) I
Responsibility towards the workers:
(i) To give fair wage. 5
(ii) To provide good working situation. (Any one)
Responsibility towards the consumers: 1
(i) To supply of right qualtty and quantity of goods and services to consumerc at reasonable prices.
(ii) To take proper precaution against adulteration, poor quality, lack of desired service and
courtesy to customers, etc..
(iii) To give right of information about the product, the company. (Any one) 1
Responsibility towards the government:
(i) It must respect the laws of the country and pay taxes regularly and honestly.
environment.
(ii) It must protect the natural (Any one)

Basis of Difference Memorandum of Association Articles of Association
31
Objectives Memorandum of Association Artides of Association are nr-les of
defines the objects for which internal rnanagement of the company.
the company is formed. They indicate
how the objectives of the company are
1
to be achieved.
b Position This is the main documenr This is a subsidiary document and is
of the company and is subordinate to subordinate to both the
the Companies Act. Memorandum of Association and the
Companies Act,
1
c Relationship Memorandum of Association Artides define the relationship of the
defines the relationship of members and the company
the company with outsiders. 5
1
d Vdidity Acts beyond the MoA are invalid Acts which are.beyond AoA can be
ratified by the members without
violatingMoA
1
e Necessity Every company has to file a MoA It is not necessary for a public Ltd.
company to file Articles, but it can
adopt Table F of the Companies Act
2013
1

32.
Joint Stock Companies
A company can be described as an artificial person having a separate legal entity, perpetual
succession and a common seal, It is govemed by The Companies Act, 201-3.

1

4t5

Features:
(i) Artificial person 8
(ii) Separate legal entity
(iii) Formation 1
(iv) Perpetual succession each
(v) Control :
(7 xL
(vi) Liability =7)
(vii) Common seal
(viii) Risk bearing (Any sarcnfeaureswith explanation, if points only half score each)

Insurance
33.
Principles: 1
(i) Utmost good faith
(ii) Insurable Interest
(iii) Indemnity
(iv) Proximate Cause
(v) Subrogation
(vi) Connibution L
(vii) Mitigation (Sanenprincipleswith explanatioryif poina only half score each) each
(7 xL

or =7)
Any sa,en feaares of insurance with explanation

Super Markets / Super bazar
Merits:
1
i) One roof, low cost
(ii) Central location
1_ 8
(iii) Wide selection
each
(iv) No bad debs
(4* 1
(v) Benefits of being large scale ( Any 4 points with explanation, if poina only half scorc eacU
4)
Demerits:
(i) No credit
(ii) No personal attention
1
(iii) Mishandling of goods
each
(iv) High overhead expenses
(3x 1
(v) Huge capital requirement. (Any 3 points with explanatioq if points only half scorc mch)
=3)

Scheme finaliseil bv :
1. REKHADEYTP S (42t740), GOVT. GIRIS HSS PAmOM, TRIVANDRUM. PH. 7356463246

2. SANIL KUMAR S (738061), GOVT. HSS YEROOR, KOLLAM. PH.9495055497

3. REKHAE D (447950), PONKUNNAM VARKEY SMARAKAGHSS, PAMPADY.PH.9495734770

4. RAIANTHOMAS (194538), GOW. HSS PATHINARAMKANDAM, RAIAMUDY IDUKKI. PH.

5. SEMEERA K (7 t4445), HIGHER SECONDARY SCHOOL, KERALASSERY. PH.9446540853.

6. LATHAM (845048), CFD VHSS, MATHOOR, PALAKKAD. PH. 9895643912

7. PADMANABHAN K P (2329791, MV HSS, ARIYALLUR, MALAPPURAM . PH.974176543

8. PRAVEEN AC(7L7I88), KH M HSS,ALATHryUR, MALAPPURAM. PH.

9. DILEEPKUMARTN (246573), GOVT. HSS, BANGARAMANJESHWARAM, KASARGODE. PH.

10. SHAII GEORGE P. GVHSS KAIPAITOR, PATFIANAMTHITTA, PH.9495806130

11. ABHILASH M.R., GVHSS BOYS PERUVA, KOTTAYAM, PH.9496801646. *_
''4.:

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