NIOS| BUSINESS STUDIES (215)| SOLVED PAPER – (JAN-FEB) - 2021| SECONDARY| ENGLISH MEDIUM
BUSINESS STUDIES
(215)
Maximum Marks: 100
Time: 3 Hours
Notes:
(1) All questions are compulsory.
(2) Marks
allotted for each question are indicated against it.
1. The head of the Joint Hindu Family Business is known as: 1
(A) Proprietor
(B) Director
(C) Karta
(D) Manager
2. Which of the following is not a function of
warehouses? 1
(A) Risk bearing
(B) Transport facility to every customer
(C) Financing
(D) Protection
of goods
3. Which of the following is an example of visual
communication? 1
(A) A person is
reading a letter.
(B) A person is
saluting the national flag.
(C) The peon is
ringing bell in the school.
(D) A traffic policeman showing the stop sign.
4. What is the full form of BPO? 1
(A) Business
Process Order
(B) Business
Process Outsourcing
(C) Business Processing Outsourcing
(D) None of the
above
5. To sell readymade garments for children, men, women
etc. is the example of: 1
(A) Single-line store
(B) Speciality
store
(C) Departmental
store
(D) General
store
6. Which of the following is a tool of sales
promotion? 1
(A) Personal
selling
(B) Publicity
(C) Advertisement
(D) Free Samples
7. In which year, Consumer Protection Act was
enforced? 1
(A) 1962
(B) 1982
(C) 1986
(D) 1996
8. Consumer Courts do not include: 1
(A) District
Forum
(B) State
Commission
(C) National
Commission
(D) Supreme Court
9. Career Planning includes: 1
(A) Starting own
business
(B) Joining a job
(C) Making
adjustments with the career
(D) Thinking
suitably about positive and negative aspects of a career
10. Which of the following is a function of an
entrepreneur? 1
(A) Innovation
(B) Risk Bearing
(C) Growth and
Development
(D) All of above
11. Differentiate between Economic and Non-Economic
activities on the basis of: 3
(i) Purpose
(ii) Outcome
(iii)
Expectation
Ans:- Economic activity
Purpose:
It involves making money. So, it refers to human activity which involves
production and consumption of goods to provide economic benefits.
Outcome:
A lot of property and assets are involved in the outcome of these types of
activities.
Expectation:
Economic activities, wealth are expected from such activities.
Non Economic
activities
Purpose:
It is defined as the purpose of providing services without involving monetary
gain. Its purpose is to help socially or out of love.
Outcome:
The result is that since non-economic activity does not involve monetary gain,
it results in happiness and satisfaction.
Expectation:
Non-economic activities are the pursuit of self-satisfaction rather than such
activities.
12. State three limitations of Joint Stock Company. 3
Ans:- Three Limitations of Joint Stock Company:
(i) Expensive
and difficult to manufacture: There are many legal formalities that the
promoters of the company must follow. To comply with these legal formalities,
promoters have to spend a lot of time and money.
(ii) Scope
for dishonest and dishonest management: Directors manage the company with
the help of paying officers. If the directors are dishonest, they can make a
personal profit at the expense of the company. They can abuse their power and
position.
(iii)
Management oligarchy: Few wealthy individuals can secure control over the
affairs of the company. Thus, the management of a joint stock company may be
distinctive in character.
13. Explain the elements of communication process in
brief. 3
Ans:- The communication process involves
understanding, sharing, and meaning, and includes eight essential elements:
source, message, channel, receiver, response, environment, context, and
intervention. Models of communication include the transactional process, in
which actions occur simultaneously, and the constructivist model, which focuses
on shared meaning.
(i) Sender:
Sender means the person who conveys his thoughts or ideas to the recipient. The
sender represents the source of the communication.
(ii) Message:
It is the content of thoughts, feelings, suggestions, commands, etc., which are
intended to be communicated.
(iii)
Encoding: It is the process of converting the message into communication
symbols like words, pictures, gestures etc.
(iv) Media:
It is the route through which the encoded message is transmitted to the
receiver. The channel can be in writing, face to face, phone call, internet
etc.
(v) Decoding: It is the process of converting
the encoded symbols of the sender.
(vi)
Receiver: The person who receives the communication of the sender.
(vii)
Feedback: It includes all the actions of the receiver indicating that he
has received and understood the message of the sender.
(viii) Noise:
Noise means any obstacle or obstruction in communication. This constraint can
be caused by the sender, the message or the receiver.
14. What is meant by “Auction Sale’? 3
Ans:- An auction sale is a public sale. Goods are
sold to all the members who gather at one place for auction. Such willing
buyers are the bidders.
The price they
are paying for the goods is the bid. And the goods will be sold to the highest
bidder.
The person
selling the auction is the auctioneer. He is the agent of the seller. So all
the rules of the agency's law apply to him.
But if an
auctioneer wants to sell his property as principal, he can do so. And he is not
required to disclose this fact, it is not a requirement under the law.
15. Define Consumer. 3
Ans:- A consumer is one who is the end user of any
goods or services. Any person other than a buyer, who buys a product or
services and consumes the product with his permission, is classified as a
consumer. Any person or group of persons other than the buyer, who buys the
product or services, consumes the product with the permission of the consumer,
falls under the category of consumer. In simple words, a consumer can be called
an end-user of goods or services.
16. Explain any two characteristics of business. 4
Ans:- Business Features:
(i) Transfer
of sale or exchange: The most prominent feature of business is the exchange
or transfer of goods and services for value or value. Producing or buying goods
and services for personal use or offering as gifts to others is not business as
there is no sale or transfer involved for value. For example, a farmer who
keeps a cow to get milk for his family is not running a business.
(ii) Dealing
in goods and services: Dealing in goods and services is another distinctive
feature of business. Every business enterprise comes into existence to provide
goods or services to the society. Goods or services may be procured by an
enterprise through production and/or purchase. Goods can be consumer goods like
bread, rice, cloth, footwear etc. or producers' goods like tools, components,
machinery, raw materials etc.
17. Explain any four functions of warehouse. 4
Ans:- The functions of warehouse are:
(i) Warehousing
helps in the storage and preservation of goods until they are sold.
(ii) Storage
removes time constraints and creates time utility.
(iii) Helps in
stabilizing the price by distributing the storage surplus.
(iv) The
warehouse performs value added services like grading, packaging etc.
(v) Storage
facilitates production in anticipation of demand.
18. What is ATM? How does it help the customers of the
Bank? 4
Ans:- An automated teller machine (ATM) is an
electronic banking outlet that allows customers to complete basic transactions
without the assistance of a branch representative or teller. Anyone who has a
credit card or debit card can access cash at most ATMs.
ATMs are
convenient, allowing consumers to perform quick self-service transactions such
as deposits, cash withdrawals, bill payments and transfers between accounts.
Cash withdrawals are usually charged by the bank where the account is located,
the operator of the ATM, or both.
19. Differentiate between Departmental Store and Super
Bazaar. 4
Ans:- A departmental store is a large retail store
that sells a wide variety of goods belonging to different departments. In
contrast, a supermarket is a large self-service retail market that typically
sells foods and household goods. Although supermarkets are large stores, they
are usually smaller than department stores.
A department
store may have several floors, whereas a supermarket is often limited to a
single level. Unlike department stores, supermarkets typically do not sell
clothing, jewellery, and hardware. Unlike supermarkets, department stores are
not usually owned by corporate chains.
20. Describe any four qualities of a successful
entrepreneur. 4
Ans:- Four Qualities of a Successful Entrepreneur:
(i) Ambition
and Confidence: Billy defined entrepreneurship as having "an ultimate
case of ambition". It really resonated with us. In our experience,
entrepreneurs are intellectually active, see all the problems that need fixing,
and are usually impatient about those problems. This mental state never goes
away; It's actually the terminal.
(ii)
Willingness to Take Leap of Faith: Both Billy and Steve note the leap of
faith upon moving to Bright box. Billy had spent 25 years on Wall Street and
was set to lead a start-up. What made Bright box so appealing to them was that
the problem (how to recharge mobile devices while away from home) was worth
solving.
(iii) Ability
to learn from mistakes: We are yet to meet entrepreneurs who have not
carried the burden of mistakes and unwise retroactive decisions. "We could
all make mistakes and learn a lot from them," Steve told us. On a daily
basis, entrepreneurs make dozens of decisions about their business, big and
small, knowing that some of those decisions will backfire.
(iv) Trust
and respect the team: Steve also spoke about how the mutual trust and
respect among the senior team at Bright box enables them to nurture each
other's strengths. It really resonated with us as well. Team members at
Avondale have very different strengths and weaknesses; We intentionally hire
for this variety. Without mutual trust, respect and partnership, we as an
organization would rapidly spiral out of control.
21. What is e-commerce? Discuss any four advantages of
it. 5
Ans:- E-commerce is the transfer of money and data to
accomplish the buying and selling of goods or services through the Internet. It
is also known as electronic commerce or internet commerce. A lot has changed
since online selling was introduced; The growth and history of e-commerce is
fascinating – and it continues to grow at a rapid pace today.
(i) Low
Financial Cost: One of the advantages of e-commerce is that it has low
startup cost. Physical retail stores have to pay up to thousands of dollars to
rent one of their store spaces. They also have many upfront costs such as store
signs, store design, buying inventory, sales equipment, and more. And don't
forget, the store owner also has to hire employees to keep each location up and
running. They may also need to hire security staff, depending on the value of
the product in the store.
(ii) 24/7
Potential Income: Another advantage of e-commerce is that online stores are
always open for business. With Facebook ads, you can attract someone at 11 pm.
Or at 4 am in any part of the world. In contrast, most physical location stores
operate between 9 a.m. and 9 p.m., giving you a competitive edge. By being
available at all times, you can attract people who would normally pick up
products in stores if the outlet were open.
(iii) Sell
Internationally: Next on the list of ecommerce benefits is that a new brand
can easily sell to customers across the world. You can find your audience
whether they are in UK, South America or neighboring countries. If you choose
to dropship from AliExpress, many products offer affordable ePacket shipping or
free shipping. This allows you to price competitively and ship your products to
a worldwide audience.
(iv) Easier
to Showcase: Ecommerce benefits like showcasing best-sellers make it easy
to showcase products to your customers. When you can design a brick-and-mortar
store to attract people to buy certain products instead of going through
different aisles and shelves, it's easier for a customer to find the
best-seller in an online store.
22. State any five features of a partnership form of
business organization. 5
Ans:- Five characteristics of partnership form of
business organization:
(i) Two or
more persons: To start a partnership firm, at least two persons have to
pool the resources. The Partnership Act, 1932 does not specify any maximum
limit on the number of partners. However, the Companies Act, 1956 provides that
any partnership or association of more than 10 persons in the case of banking
business and more than 20 persons in other forms of business is illegal unless
formed as a joint stock company. is not constituted. do not register
(ii)
Agreement: A partnership comes into existence through an agreement between
persons competent to enter into a contract (eg minor, lunatic, insolvent etc.
Not eligible). The agreement may be oral, written or implied. However, it
remains to keep everything in black and white and dispel the fog around all
entrenched issues.
(iii) Lawful
Business: Partners can carry on only legally blessed activities. Any
illegal activity done by the partners does not enjoy legal sanction.
(iv)
Registration: Registration of the firm is not mandatory under the Act. (In
most states of India, registration is voluntary). However, if the firm is not
registered, some legal benefits cannot be obtained. The effects of
non-registration are- (i) the firm cannot take any action in a court of law
against any other party for settlement of claims and (ii) in case of dispute
between the partners, settlement is not possible by law. dispute through court.
(v) Sharing
of Profit: The partnership agreement should specify the manner of sharing
of profit and loss among the partners. A charitable hospital, educational
institution jointly run by like-minded individuals should not be seen as a
partnership as it does not share any profit or loss. However, mere sharing of
profits is not a conclusive proof of partnership. In this sense, profit sharing
employees or creditors cannot be called partners unless there is an agreement
between the partners.
23. Describe the procedure of opening a savings bank
account in a Bank. 5
Ans:- A savings bank account is one of the first
accounts that we open as soon as we cross the age of 18. It's important to have
your income and proof of it, save money and use it whenever you need it. Almost
all banks in India now offer online and offline zero balance savings accounts.
Some have preferred to open their bank account online and others have visited
their nearest bank branch to open a savings account offline.
If you are also
one of those people who still prefer offline banking services, then it is
absolutely fine. In this article, you will learn about the steps to open a
savings account offline along with the documents required to apply for the
same.
How can you
open savings account offline?
You need to
follow the following steps to open an offline savings account with the nearest
branch of your bank:
(i) Visit your
nearest bank branch
(ii) Fill the
account opening form
(iii) Submit
KYC documents (ID and address proof)
(iv) Attach
your passport size photograph on the form
(v) submit a
signed check, if required
Submit the
signed form to the branch and your bank account will be activated within a few
days.
24. What is Personal Selling? State any three elements of
Personal Selling. 5
Ans:- Personal selling is a personal selling method
that employs person-to-person interactions between sales reps and potential
customers to influence a customer's buying decision.
The Three
Elements of Personal Selling:
(i)
Knowledge of Self: Self Portrait of a Salesman Contributes to Success. This
is the sales-persona. The 'sales-personality' is a lot about a salesman who
favorably influences the prospects.
(ii)
Knowledge of Sales Process: Since sales is the breath of every salesperson,
he should have knowledge of sales process. He should have in-depth knowledge of
the selling process and each of its stages.
(iii)
Knowledge of the Company: A salesman must have sound knowledge of his
company in order to build strong and lasting morale, shape personality and
achieve high level of success.
25. What do you mean by Consumerism? Explain any two
responsibilities of a consumer. 5
Ans:- Every time you buy something, you are
considered a consumer. The noun consumerism refers to the idea that spending
money and consuming goods is good for our economy. Because you are willing to
spend money on goods and services, businesses are able to produce goods, people
are getting jobs, money is flowing, and our economy is expanding.
As the world
economy grows, everyone is involved in more and more, and by and large,
transactions, and therefore the rights and responsibilities of being a
well-educated consumer are more important than ever.
Consumer
Liability:
(i)
Responsibility to be aware: A consumer should be aware of the safety and
quality of products and services before buying.
(ii) Responsibility
to think independently: The consumer should be fully concerned about what
they want and want and hence choose the free option.
(iii)
Responsibility to speak: The buyer should be fearless to speak out his
complaints and tell the merchants what they really want.
(iv)
Responsibility to make a complaint: It is the responsibility of the
consumer to express his dissatisfaction with the goods or services in an honest
and fair manner and to file a complaint.
(v)
Responsibility to be an ethical consumer: They should be impartial and
should not indulge themselves in any deceptive practices.
26. What are the activities undertaken by a consumers'
cooperative society? Explain any four features of cooperative societies. 6
Ans:- A consumer cooperative is an enterprise owned
by a mutual group of consumers with common interests who work to protect and
serve the interests of common consumers.
The Consumer
Co-operative Society works exclusively to protect the interests of the common consumers.
So, the activities carried out by the consumer cooperative society are:
(i) This type
of cooperative society tries to make consumer goods available at cheap and
reasonable prices.
(ii) The
society buys goods in bulk directly from the producers in order to eliminate
middlemen, reduce brokerage costs and grab trade discounts.
(iii) Consumer
goods are bought in bulk and sold in retail to general consumers.
(iv) Further,
the prices of consumer goods are decided by the society and the profit is
distributed among the members.
Features of a
Co-operative Society:
(i)
Voluntary Federation: Membership of co-operative societies is voluntary.
Any person having common interest is free to join the co-operative society. The
member can also leave the society at any time by giving proper notice.
(ii) Equal
Voting Rights: A co-operative society is based on the principle of
"one man one vote". A member has only one vote, irrespective of the
number of shares he holds. Thus, a co-operative society functions on democratic
principles.
(iii)
Separate Legal Entity: A co-operative society is required to be registered
under the Co-operative Societies Act. Registration renders it a separate legal
entity. Its existence is quite different from that of its members.
(iv)
Service Objective: A co-operative society is based on the objective of
service to its members. Its main objective is to provide service to the members
and not to get maximum profit. Making profit is the most important objective of
other forms of business organization. This is not the case with co-operative
societies.
27. Explain any four saving schemes operated through Post
Office. 6
Ans:- Details of Various Post Office Savings Schemes:
(i) Post
Office Fixed Deposit Scheme: The minimum amount to be invested in this
scheme is Rs 200, with no upper limit. Also, there is no restriction on the
number of accounts under this plan. An account holder can transfer his account
from one post office to another and there is facility of joint account also. As
the tenure of the fixed deposit matures, the same tenure automatically gets
renewed for the same period. Tax benefit is provided on investments made for
five years under Section 80C of the Income Tax Act.
(ii) Post
Office Recurring Deposit: It is basically a monthly savings scheme for five
years which offers interest at the rate of 7.3% per annum, which is compounded
quarterly. On completion of five years, every month on investment of Rs 10,000,
Rs 7,25,051 will be deposited in the recurring deposit account. The scheme
allows minimum investment of Rs.10/month and any amount but there should be no
upper limit on investment in multiples of Rs.5. This post office savings scheme
charges 5 paise for every Rs 5 you miss in monthly investments. An account
holder can transfer his RD from one post office branch to another and joint
accounts are also available under this scheme. One can withdraw up to 50% of
the amount available in his RD account after one year of investment.
(iii) Post
Office Savings Account: Thus the account works like savings accounts of
banks, with the difference that it is held with the post office. However, a
person can open only one account in one post office but can transfer one
account from one post office to another. The interest rate available with this
account is 4% and it is fully taxable without any TDS deduction.
(iv) Post
Office Monthly Scheme Account (MIS): It is a unique scheme that provides
fixed monthly income on the investments made by the investors. Any Indian
resident can open an account under this scheme as an individual account holder
or jointly. This post office savings scheme offers an interest rate of
7.7%/year with a maturity period of five years. This account can be opened for
a minor also and if the age of the minor is more than 10 years then he can
operate his own account also.
28. State any six differences between wholesalers and
retailers. 6
Ans:- Wholesale is selling goods in bulk at
affordable rates to retailers and businesses. The wholesaler buys the product
in bulk, breaks it into smaller parts, reassembles and sells it to retailers.
The wholesaler only sells specific items and is least interested in the
location of the shop, packaging and display of the goods. They are more
interested in quantity rather than quality of a product.
Wholesale
business requires considerable investment, not just promotion and advertising.
The wholesale customers are spread across different cities, towns and different
states. Most purchases are sold to customers through credit.
A wholesale shop
must only have a license to sell merchandise to a retailer and generally should
not be available to the customer. However, if the customer wants to buy the
product directly from the wholesaler, they will be charged more than the
retailer. Typically, a wholesaler sells only one product or a range of products,
so that they can focus on one type of business for their goods.
|
|
Wholesale |
Retail |
|
Definition |
Sale of goods
in bulk but cheaper rates |
Sale of goods
to the end-users in higher rates and limited quantity |
|
Cost |
Less |
High |
|
Business
size |
Large |
Small |
|
Capital |
Higher |
Less |
|
Business outreach |
Spread across
the state, different state |
Limited space |
|
Art of
selling |
Not required |
Required |
29. Discuss any four of the problems faced by consumers
in their daily life. 6
Ans:- This information is about the problems of
consumers:
(i) Lack of
Information: The main problem faced by the consumers is lack of
information. The customers do not even know the sources of getting the
information.
(ii)
Illiteracy: Most of the consumers in urban and remote areas are illiterate
and they are not able to understand the policies of the organization or the
government even they do not understand the use or misuse of the products.
(iii) No Fare
Return: The customers, though pay a high price to buy the goods, but many
times they do not get satisfaction from the goods they have purchased.
(iv)
Exploitation: Consumers are exploited by sellers in the Indian market.
30. What are the factors you would like to consider if
you start a small enterprise to produce wrist watch? Explain in brief any four
such factors. 6
Ans:- A small enterprise usually has less than fifty
employees and the initial investment will be less than five crores but more
than twenty five lakhs.
(i) The main
factor to be considered while setting up a ball pen business is the
specification of the pen so that the product can be easily marketed.
(ii) Finance
required, location desired for the enterprise, target market, number of
employees required will be considered.
(iii) The
product to be sold is either an existing product which is in demand or a new
innovation such as smooth flowing ink consistency.
(iv) The
ownership of the enterprise such as sole proprietorship, partnership etc. will
be considered.
***
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