Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

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TN State Board 11th Commerce Model Question Paper 1 English Medium

Instructions:

  1.  The question paper comprises of four parts.
  2.  You are to attempt all the parts. An internal choice of questions is provided wherever applicable.
  3. questions of Part I, II. III and IV are to be attempted separately
  4. Question numbers 1 to 20 in Part I are objective type questions of one -mark each. These are to be answered by choosing the most suitable answer from the given four alternatives and writing the option code and the corresponding answer
  5. Question numbers 21 to 30 in Part II are two-marks questions. These are to be answered in about one or two sentences.
  6. Question numbers 31 to 40 in Parr III are three-marks questions, These are to be answered in about three to five short sentences.
  7. Question numbers 41 to 47 in Part IV are five-marks questions. These are to be answered) in detail. Draw diagrams wherever necessary.

Time: 2\(\frac{1}{2}\) Hours
Maximum Marks: 90

Part – I

Choose the correct answer. Answer all the questions: [20 × 1 = 20]

Question 1.
The place where the goods are sold is …………
(a) Angadi
(b) Market
(c) Nalangadi
(d) Allangadi
Answer:
(a) Angadi

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Question 2.
Activities undertaken with the object of earning money are called as …………
(a) Economic activities
(b) Monetary activities
(c) Non-monetary activities
(d) Financial activities
Answer:
(a) Economic activities

Question 3.
Small shops which deal in a particular line of products are called as …………
(a) Market traders
(b) Single line stores
(c) Super market
(d) Street stalls
Answer:
(b) Single line stores

Question 4.
Match List I with List II and select the correct answer using the codes given below …………

List – I List – II
(i) Bank overdraft 1. Medium term finance
(ii) Debentures 2. Short term finance
(iii) Letter of credit 3. Long term finance
(iv) Lease financing 4. Foreign trade

codes:

(i) (ii) (iii)

(iv)

(a)

4 3 2

1

(b)

2 3 4

1

(c)

3 2 4

1

(d)

1 2 3

4

Answer:
(b) (i) 2, (ii) 3, (iii) 4, (iv) 1,

Question 5.
The features of sole proprietorship are …………
(i) Limited liability
(ii) Maintenance of secrecy
(iii) Common seal
(iv) Quick decisions
(a) (i) and (ii)
(b) (ii) and (iv)
(c) (ii) and (iii)
(d) (i) and (iv)
Answer:
(b) (ii) and (iv)

Question 6.
The members in the Joint Hindu Family are called …………
(a) Kartha
(b) co-parceners
(c) generations
(d) partners
Answer:
(b) co-parceners

Question 7.
Foreign banks begun their operations since …………
(a) 1978
(b) 1979
(c) 1980
(d) 1981
Answer:
(c) 1980

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Question 8.
Hindrance of knowledge is removed by …………
(a) Transport
(b) Advertising
(c) Warehouse
(d) Insurance
Answer:
(b) Advertising

Question 9.
On the basis of size, industries may be classified as follows. Out of the given, which is not correct?
(a) Macro industries
(b) Micro industries
(c) Small industries
(d) Medium industries
Answer:
(a) Macro industries

Question 10.
According to Saint Poet Ilango, the night market was called as …………
(a) Angadi
(b) Nalangadi
(c) Allangadi
(d) Market
Answer:
(c) Allangadi

Question 11.
Find out the unsuitable place of location of Automatic Vending Machines from the following.
(a) Railway station
(b) Airports
(c) Bus stand
(d) Petrol pumps
Answer:
(c) Bus stand

Question 12.
Movement of goods and services, intellectual property, human assets, technology and so on among the countries.
(a) International trade
(b) International business
(c) Entrepot trade
(d) Internal trade
Answer:
(a) International trade

Question 13.
Which of the following is not a function of insurance?
(a) Lending funds
(b) Risk sharing
(c) Capital formation
(d) Protection of life
Answer:
(d) Protection of life

Question 14.
Outsourcing job is given to developing countries specifically for …………
(a) cheap labour
(b) land
(c) capital
(d) factors
Answer:
(a) cheap labour

Qustion 15.
An ………… is a document prepared by the importer and sent to the exporter to buy the goods.
(a) invoice
(b) indent
(c) enquiry
(d) charter party
Answer:
(b) indent

Question 16.
WTO was established on …………
(a) 1-1-1996
(b) 1-1-1997
(c) 1-1-1995
(d) 1-1-1994
Answer:
(c) 1-1-1995

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Question 17.
Table A of the companies Act is a …………
(a) Model Minutes Book
(b) Model form of Balance Sheet
(c) Model of AOA
(d) Model of MO A
Answer:
(c) Model of AOA

Question 18.
Centralised control in MNC’s implies control exercised by …………
(a) Branches
(b) Subsidiaries
(c) Headquarters
(d) Parliament
Answer:
(c) Headquarters

Question 19.
Ethics is important for …………
(a) Top Management
(b) Middle level Management
(c) Non-managerial employees
(d) All of them
Answer:
(d) All of them

Question 20.
The minimum number of members to start a co-operative is …………
(a) 10
(b) 15
(c) 20
(d) 25
Answer:
(a) 10

Part-II

Answer any seven questions in which Question No. 30 is compulsory. [7 x 2 = 14]

Question 21.
Who is a-minor?
Answer:
Under the Indian Majority Act, a person who has not completed 18 years of age is a minor. He can be admitted to the benefit of partnership.

Question 22.
Define the term person.
Answer:
The term ‘person’ has been defined under the Income tax Act. It includes individual, Hindu Undivided Family, Firm, Company, local authority, Association of person or body of Individual or any other artificial juridical persons.

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Qustion 23.
What do you mean by employment?
Answer:
It refers to the occupation in which people work for others and get remuneration in the form of wages or salaries.

Question 24.
What is cargo insurance?
Answer:
When a marine insurance policy is taken by the cargo owner to be compensated for loss caused to his cargo during the journey, it is known as cargo insurance.

Question 25.
What are the services included in the service business?
Answer:
Educational, medical, hospitality and banking are the services included in service businesses. Bank service is the nerve center of industry and commerce in a country.

Question 26.
It is a private sector bank. It is also called as non-banking financial companies. What is the name of the bank? Mention any two objectives of the bank.
Answer:
The name of the bank is Small Finance Banks (SFBs). It is. a private sector bank.
Objectives:

  1. Mobilising rural savings (accepting deposits).
  2. Providing credit to farmers and small industries.

Question 27.
What is free enterprise?
Answer:
A business enterprise which accepts and discharges social obligations enjoys greater freedom. Thus, social responsibilities are essential for avoiding governmental action against business. Such action will reduce the freedom of decision making in business.

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Question 28.
Give any three functions of warehouses.
Answer:

  1. Storage
  2. Price stabilization
  3. Equalization of demand and supply

Question 29.
Liquids and gases are transported by this method. What is the kind of transport?
Answer:
This is known as pipeline transport. It is a recent trend in transport. It can transport the goods through pipe. It can transport oil, natural gas and bio-fuel, etc.

Question 30.
Who are the mercantile agents?
Answer:
Mercantile Agents are also called functional middlemen. A businessman appoints a person to buy and sell goods on his behalf and gives him the right to borrow money on the security of goods. He is known as mercantile agent.

PART – III

Answer any seven questions in which Question No. 40 is compulsory. [7 x 3 = 21]

Question 31.
Write short notes on:
(a) business
(b) profession
Answer:
(a) Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale or purchase of goods and services.

(b) Professions are those occupations which involve rendering of personal services of a special and expert nature. A profession is something which is more than a job. It is a career for someone who is competent in their respective areas.

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Question 32.
What are the types of franchising?
Answer:
Franchising means providing license to do a business and giving training.
Types of franchising:

  • Product / trade name franchising:
    In this, the franchisee deals with a manufacturer’s product.
  • Business format franchising:
    When a franchiser awards rights covering all business aspects to the franchisee, it is called business format franchising.

Question 33.
Comment on cold storage warehouse.
Answer:
Goods are transferred in refrigerated containers and stored in refrigerated warehouse. These warehouses are used for storing perishable goods like fruits, vegetables, eggs, butter, fish and meat, etc. Goods stored in cold storages without deterioration in quality, can be made available throughout the year.

Question 34.
Distinguish between extractive industries and genetic industries.
Answer:
Extractive Industries:

  1. These industries extract or draw out products from natural sources.
  2. Extractive industries supply some basic raw materials that are mostly products of geographical or natural environment.

Genetic Industries:

  1. These industries remain engaged in breeding plants and animals for their use in further reproduction.
  2. The seeds, nursery companies’ poultry, diary, piggery, hatcheries, nursery, fisheries, apiary, etc.

Question 35.
List any three objectives of GST.
Answer:

  • To create a common market with uniform tax rate in India. (One Nation, One Tax, One Market).
  • To eliminate the cascading effect of taxes, GST allows set-off of prior taxes for the same transactions as input tax credit.
  • To boost Indian exports, the GST already collected on the inputs will be refunded and thus there will be no tax on all exports.

Question 36.
What do you mean by ECS?
Answer:
Electronic Clearing Service (ECS) is an electronic method of fund transfer from a bank to another bank. It was launched by the RBI in 1995. ECS credit can be used to credit salary, dividend, interest, pension, etc. ECS debit is used to debit monthly telephone bills, electricity bills, equated monthly installments (EMI) payments, etc.

Quetion 37.
What do you mean by human activity? Explain.
Answer:
Human activity is an activity performed by a human being to meet his/her needs and wants or may be for personal satisfaction. Human activities can be categorized into economic and non-economic activities.

Question 38.
Explain the origin of RBI.
Answer:
The Imperial Bank of India carried out the note issue and other functions of the central bank. In 1926, the Hilton-Young Commission or the Royal Commission on Indian Currency and Finance (J. M. Keynes and Sir Ernest Cable were its members) made recommendation to create a central bank.

As a result the RBI Act 1934 was passed and RBI launched its operations from April 1, 1935. RBI was established with a share capital of Rs. 5 crores divided into shares of Rs. 100 each fully paid up. The Head office of the RBI is situated in Mumbai.

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Question 39.
Several countries like Russia, Canada, Australia and China have already introduced the tax for the goods. But our country introduced the tax for the goods during the year 2017. What is the name of the tax? Also write the meaning and three objectives of the tax.
Answer:
The name of the tax is Goods and Services Tax (GST).
GST is the tax levied on the supply (consumption) of goods and services. A manufacturer need not pay GST. GST is applicable to all goods and services except alcohol and specified petroleum products.

Objectives:

  • The foremost objective of GST is to create uniform tax in India.
  • To increase the tax base by bringing more number of tax payers and increase tax revenue.
  • Tax return procedures may be simplified, to avoid visiting tax departments.

Question 40.
What is unlimited liability?
Answer:
The liability of the proprietor for the debts of the business is unlimited. The creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.

PART – IV

Answer all the questions. [7 x 5 = 35]

Question 41 (a).
Describe the different kinds of GST.
Answer:
GST is of three kinds: CGST, SGST / UGST, and IGST.
(A) CGST – Central Goods and Services Tax – imposed and collected by the Central Government on all supply of goods within a state (intra-state) under CGST Act 2017.

(B) SGST – State Goods and Services Tax – imposed and collected by the State Governments under State GST Act. (Tamil Nadu GST Act 2017 passed by Tamil Nadu Govt.)

(C) UGST – Union Territory Goods and Services Tax – imposed and collected by the five Union Territory Administrations in India under UGST Act 2017.

(D) IGST – Inter-State Goods and Services Tax – imposed and collected by the Central Government and the revenue shared with States under IGST Act 2017.

(E) IGST on exports – All exports are treated as Inter-State supply under GST. Since exports are zero rated, GST is not imposed on all goods and services exported from India. Any input credit paid already on exports will be refunded.

[OR]

Question 41 (b).
A public corporation is created by a statute. It is also known as a Statutory Corporation. Explain any five features of public corporation.

(1) Special Statute:
A public corporation is created by a special Act of the Parliament or the State Legislature. The Act defines its powers, objectives, functions and relations with the ministry and the Parliament (or State Legislature).

(2) Separate Legal Entity:
A public corporation is a separate legal entity with perpetual succession and common seal. It has an existence, independent of the Government. It can own property; can make contracts and file suits, in its own name.

(3) Capital Provided by the Government:
The capital of a public corporation is provided by the Government or by agencies controlled by the government. However, many public corporations have also begun to raise money from the capital market.

(4) Financial Autonomy:
A public corporation enjoys financial autonomy. It prepares its own budget; and has authority to retain and utilize its earnings for its business.

(5) Management by Board of Directors:
Its management is vested in a Board of Directors, appointed or nominated by the Government. But there is no Governmental interference in the day-to-day working of the corporation.

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Question 42 (a).
Compare business with profession and employment.
Answer:
Tamil Nadu 11th Commerce Model Question Paper 1 English Medium - 2

Question 42 (b).
The traders who have no fixed place of sales are called Itinerants. They are also called as mobile traders. Explain the various types of Itinerant traders.
Answer:
The traders who have no fixed place of sales are called Itinerants. They move from one place to another place to find out the customers.

They are divided into four types:

(1) Peddlers and Hawkers:
Peddlers are individuals who sell their goods by carrying it on their head or shoulders. Hawkers are petty retailers who sell their goods at various places such as bus stop, railway station, public park using a vehicle to carry the goods.

(2) Street vendors:
The traders sit on the footpath of the road or at the end of the road and sell their goods such as fruits, vegetables, books are called Street vendors.

(3) Market traders:
Small traders open their shops at different places on fixed days or such as every Sunday or alternative Wednesdays (Varasandhai – weekly market).
Examples:
Pollachi, Manaparai, Ranipet, etc.

(4) Cheap Jacks:
These are retailers who have independent shops of temporary nature in a business locality. They deal in consumer goods and services such as shoes, plastic items, etc.

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Question 43(a).
What are the functions, of wholesalers?
Answer:
Following are the functions of wholesalers:

  1. Collection of Goods:
    Wholesaler collects the goods from manufacturers or producers in bulk.
  2. Storage of Goods:
    Wholesaler collects and stores them safely in warehouses, till they are sold out.
  3. Distribution:
    Wholesaler sells goods to different retailers. Thus he performs the function of distribution.
  4. Financing:
    Wholesalers provide financial support to producers and manufacturers by providing money in advance to them.
  5. Risk Taking:
    Wholesaler buys finished goods from the producer and keeps them in the warehouses till the time they are sold and assumes the risk arising from price, spoilage of goods, and changes in demand.
  6. Grading Packing and Packaging:
    Wholesaler classifies the goods into different categories.
  7. Providing Information:
    Wholesalers provide valuable information to retailers and producers.
  8. Transportation:
    A wholesaler arranges for the transport of goods from producers to his warehouse and from the warehouse to retailer.

[OR]

Question 43 (b).
Explain the characteristics of a supermarket.
Answer:

  1. Supermarkets are generally situated at the main shopping centres.
  2. The goods kept on racks with clearly labelled price and quality tags in such stores.
  3. The customers move into the store to pickup goods of their requirements, bring them to the cash counter, make
  4. payment and take home delivery.
  5. The goods are sold on cash basis only. No credit facilities are made available.
  6. Supermarkets are organised on departmental basis.
  7. It requires huge investment.

Question 44(a).
What are the factors affecting a channel of distribution?
Answer:
The factors affecting a channel of distribution are as follows:

Product Characteristics:
Seasonal products are distributed through less layer of middlemen. Non-standardized products that are made according to customer specifications may be delivered directly.

Market Characteristics:
The size of the market for the goods is a major factor while selecting the route for distribution of products.

Number of Consumers:
Large purchases made by few consumers require centralised distribution.

Middlemen factor:
Middlemen who are experienced and have produced more sales are wanted by all producers. Long channel naturally increases the cost and price of the product.

Capacity of the Manufacturer:
A financially strong producer may select a high technology oriented channel which will reduce cost in the long run.
Cost and Time Involved in the Channel of Distribution: The channel cost should go along with the quality of service provided by middlemen.

Services Required along with the Product:
Machinery or equipment which need to be installed and demonstrated should be sold with shorter channel.

Life Cycle of the Product:
An established product can select an ordinary channel. But a new product entering into the market should be carefully promoted by experienced middlemen.

[OR]

Question 44 (b).
Explain the advantages of Air transport.
Advantages of Air transport:
Answer:

  1. It provides a regular, convenient, efficient and quick service.
  2. Perishable goods like fruits, vegetables, egg, meat, etc., can be transported quickly.
  3. It does not require huge investment for construction and maintenance of track like railways.
  4. They provide comfortable services for passengers and safety for their goods.
  5. It can be used to move goods to areas, which are inaccessible to other means of transport.
  6. It is very much helpful for flood or landslide and war rises to the occasion to save human ‘ life from danger.

Question 45 (a).
Industry means, which is connected with conversion of raw materials into finished goods. It may be of various types. Explain:
(a) Analytical industry
(b) Genetic industry
(c) Construction industry.
Answer:
(a) Analytical Industry:
It analyses and separates different elements from the same materials, as in the case of oil refinery.

(b) Genetic Industries:
These industries remain engaged in breeding plants and animals for their use in further reproduction. The seeds, nursery companies, poultry, diary, piggery, hatcheries, nursery, fisheries, apiary etc are classic examples of genetic industries.

(c) Construction Industries:
These industries are involved in the construction of building, dams, bridges, roads, as well as tunnels and canals.

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Question 45 (b).
Explain the procedure for the registration of partnership firm.
Answer:
Procedure for registration:
A statement should be prepared stating the following particulars:

  1. Name of the firm.
  2. The principal place of business.
  3. Name of other places where the firm carried on business.
  4. Names and addresses of all the partners.
  5. The date on which each partner joined the firm.
  6. The duration of the firm.

This statement signed by all the partners should be produced to the Registrar of Firms along with the necessary registration fee of Rs.3. Any change in the above particulars must be communicated to the Registrar within 14 days of such alteration.

Question 46 (a).
Distinguish between contract and agreement.
Answer:
Tamil Nadu 11th Commerce Model Question Paper 1 English Medium - 3

Question 46 (b)
The World Trade Organisation (WTO) was established on 1st January 1995. The GATT was renamed as WTO. Explain the objectives of WTO.
Answer:
The objectives of WTO are:

  • Improving the standard of living of people in member countries.
  • Making optimum utilization of world’s resources for sustainable development of member countries.
  • Promoting an integrated more viable and durable trading system in the sphere of international business.
  • Expansion of trade in goods and services.
  • Ensuring full employment and large steady growth volume of real income and effective demand.
  • Protecting the environment.

Question 47 (a)
Briefly explain the auxiliaries to trade.
Answer:
Commerce includes not only trade but also services such as transport, warehousing, packaging, insurance, banking and sales promotion which are incidental or auxiliaries to trade.

Trade:
The term trade is used to denote buying and selling. Therefore who buys and sells is a trader. A trader is a middleman between the producer and the consumer.

Transportation:
Goods produced are to be sent to different places where they are demanded. It is done by transporting.

Banking:
To start the business or to run it smoothly, we need money. Banks supply money in the form of loan. Business activities cannot be undertaken unless funds are available. The funds can be obtained from the bank.

Insurance:
Business involves many types of risks. Factory building, machinery, furniture must be protected against fire, theft and other risks. Employees are also protected against the risk of accident. Insurance provides protection in all such cases.

Tamil Nadu 11th Commerce Model Question Paper 1 English Medium

Warehousing:
Usually goods are not sold or consumed immediately after the production. They are to be kept in stock to make them available as and when required. Warehousing helps the firms to overcome the problem of storage and stores the goods for future usage.

[OR]

Question 47 (b)
A Joint stock company is a distinct form of business organisation. It is useful to overcome the limitations of sole trader and partnership. There are so many features of company. What are the characteristics of Joint Stock Company?
Answer:
Characteristics of a Joint Stock Company:

(1) Separate legal entity:
Under Incorporation, a company becomes a separate legal entity as compared to its members. The company is distinct and different from its members.

(2) Limited Liability:
The liability of the members of the company is limited to contribution to the assets of the company upto the face value of shares held by him. A member is liable to pay only the uncalled money due on shares held by him.

(3) Transferability of shares:
Shares in a company can be freely transferable. When a member transfers his shares to another person, the transferee becomes the shareholder of the company.

(4) Common Seal:
A company is an artificial person and does not have a physical presence. So the common seal is necessary because the company cannot sign the documents. It is the official signature of the company.

(5) One Share – One Vote:
The principle of voting in a company is one share – one vote. If a person has 10 shares, he has 10 votes in the company. So in a company, money is given more importance than a man.