SAMPLE ACHIEVEMENT TEST ON BUSINESS STUDIES
CLASS: XI. BUSINESS STUDIES
MARKS:
40
TIME: 1.30 Mts
Answer All the Questions
- What is e-business? [1]
- Explain the concept of social responsibility of business? [3]
- Name the stages in the formation of a company. [1]
- What is outsourcing? [2]
- Explain the different functions of a promoter. [4]
- Explain the major arguments for social responsibility. [4]
- Summaries the different benefits of e-business. [5]
- Explain the need for pollution control. [5]
- What are the different steps involved in collecting capital by a public company? [6]
- What is Memorandum of Association ? [2]
- Explain the term Incorporation [2]
- Explain the different elements of business ethics [5]
MARKING SCHEME
|
Question
Number
|
Value
points
|
Total
|
|
1.
|
e-business may be defined as the conduct of
industry, trade and commerce using the computer networks.
|
1
|
|
2.
|
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. Need for social
responsibility of business arises both because of firm’s interest and the
interest of society. However, there are arguments both for and against social
responsibility.
|
3
|
|
3.
|
a) Promotion , b) incorporation c) commencement of
business
|
1
|
|
4.
|
It refers to a
long-term contracting out generally the non-core and of late even some of the
core activities to captive or third party specialists with a view to
benefitting from their experience, expertise, efficiency and, even investment.
|
2
|
|
5.
|
It begins with a potential business idea. Certain
feasibility studies e.g. technical, financial and economic, are conducted to
determine whether the idea can be profitably exploited. In case, the
investigations yield favourable results, promoters may decide to form the
company. Persons who conceive the business idea, decide to form a company,
take necessary steps for the same, and assume associated risks, are called
promoters.
Steps
in Promotion
i.
Approval of company’s name is taken from the Registrar of Companies
ii.
Signatories to the Memorandum of Association are fixed
iii.
Certain professionals are appropriated to assist the promoters.
|
4
|
|
6.
|
Arguments for social responsibility: Major arguments are:
(i)
justification
for existence and growth,
(ii)
long-term
interest and image of the firm,
(iii)
avoidance of
government regulation,
(iv)
maintenance
of orderly society,
(v)
availability
of resources with business,
(vi)
converting
problems into opportunity,
(vii)
better environment for doing business, and
(viii)
Holding the business responsible for social
problems
|
4
|
|
7.
|
(i)
Ease
of formation and lower investment requirements: Unlike a host of procedural requirements for setting
up an industry, e-business is relatively easy to start.
(ii)
Convenience:
Internet offers the convenience of
‘24 hours × 7 days a week × 365 days’ a year business.
(iii)
Speed: As
already noted, much of the buying or selling involves exchange of information
that internet allows at the click of a mouse
(iv)
Global
reach/access: Internet is truly without boundaries.
On the one hand, it allows the seller an access to the global market; on the
other hand, it affords to the buyer a freedom to choose products from almost
any part of the world.
(v)
Global reach/access: Internet is truly without boundaries. On the one hand, it
allows the seller an access to the global market; on the other hand, it
affords to the buyer a freedom to choose products from almost any part of the
world.
|
5
|
|
8
|
Need for pollution control: Important reasons which make a case for pollution control
are:
(i)
reduction of
health hazards,
(ii)
reduced risk
of liability,
(iii)
cost savings
(iv)
improved
public image, and
(v)
other social
benefits.
|
5
|
|
9
|
Capital Subscription: A
public company raising funds from the public needs to take following steps
for fund raising:
(i) SEBI approval;
(ii) File a copy of prospectus with the Registrar of
Companies;
(iii) Appointment of brokers, bankers and underwriters
etc.;
(iv) Ensure that minimum subscription is received;
(v) Application for listing of company’s securities;
(vi) Refund/adjust excess application money received;
(vii) Issue allotment letters to successful applicants;
and
(viii) File return of allotment with the Registrar of
Companies (ROC).
A public company, raising funds,
raising funds from friends/relatives (not public) has to file a statement in
lieu of prospectus with the ROC at least three days before allotment of
shares and returns of allotment after completing the allotment ,
|
6
|
|
10
|
Memorandum of Association is the most
important document as it defines the objectives of the company. No company
can legally undertake activities that are not contained in its Memorandum of
Association. The Memorandum of Association contains different clauses.
|
2
|
|
11
|
An application is made by promoters
to the Registrar of Companies along with necessary documents and registration
fees. The Registrar, after due scrutiny, issues certificate of incorporation.
The registration may be refused only in case of a major defect in the
documents. The certificate of incorporation is a conclusive evidence of the
legal existence of the company.
|
2
|
|
12
|
Ethics is concerned with what is
right and what is wrong in human behavior judged on the basis of socially
determined standards of behavior. Business ethics concerns itself with
relationship between objectives, practices, and techniques and the good of
society. Ethics is important for every business.
Elements of business ethics: An enterprise can foster ethics at
the workplace by following basic elements of business ethics, such as
(i)
top
management’s commitment,
(ii)
publication
of a establishment of compliance mechanism
(iii)
involving
employees at all levels
(iv)
measuring
results.
|
5
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