Chapter 1: Nature and Purpose of Business
Question 1. (2018 Mar - 1 Mark)
The broad classification of business activities include ____ and ____
a) Trade and aids to trade
b) Industry and commerce
c) Industry and trade
d) Internal trade and external trade
Answer: b) Industry and commerce (വ്യവസായവും വാണിജ്യവും)
Question 2. (2018 Imp - 1 Mark)
Fill as per the hint given.
a) Hindrance of place – Transportation
b) Hindrance of risk – ?
Answer: Insurance (ഇൻഷുറൻസ്)
Question 3. (2019 Mar - 1 Mark)
Which among the following is a 'human cause' of business risk?
a) Earthquake
b) Mismanagement
c) Change in demand
d) Competition in market
Answer: b) Mismanagement (തെറ്റായ മാനേജ്മെന്റ്)
Question 4. (2019 Imp - 1 Mark)
Which of the following is not a characteristic of business?
(a) Production
(b) Exchange or sale
(c) Wages or salaries to investors
(d) Risk element
Answer: (c) Wages or salaries to investors (നിക്ഷേപകർക്ക് ശമ്പളം നൽകുന്നത് ബിസിനസ്സിന്റെ സവിശേഷതയല്ല)
Question 5. (2020 Mar - 1 Mark)
Which among the following is a personal cause of business risk?
(a) Strike of employees
(b) Famine
(c) Change in technology
(d) Flood
Answer: (a) Strike of employees (തൊഴിലാളി സമരം)
Question 6. (2020 Imp - 1 Mark)
Identify the economic cause of business risk from the following:
a) Flood
b) Market competition
c) Strike
d) Power Failure
Answer: b) Market competition (വിപണി മത്സരം)
Question 7. (2021 Mar - 1 Mark)
Warehousing provides _____ utility.
(a) Time
(b) Place
(c) Risk
(d) Finance
Answer: (a) Time (സമയ ഉപയുക്തത)
Question 8. (2021 Mar - 1 Mark)
Trade between two persons belong to the same country is called
(a) External trade
(b) Internal trade
(c) Foreign trade
(d) International trade
Answer: (b) Internal trade (ആഭ്യന്തര വ്യാപാരം)
Question 9. (2021 Imp - 1 Mark)
Which among the following is a cause of business risk?
(a) Change in fashion
(b) Strike or lockout
(c) Theft
(d) All of these
Answer: (d) All of these (ഇവയെല്ലാം)
Question 10. (2022 Mar - 1 Mark)
Commerce includes trade and
(a) Industry
(b) Auxiliaries to trade
(c) Business
(d) Outsourcing
Answer: (b) Auxiliaries to trade (വ്യാപാര സഹായികൾ)
Question 11. (2022 Imp - 1 Mark)
Industries which provide support services to other industries are known as:
(a) Primary Industries
(b) Secondary Industries
(c) Tertiary Industries
(d) None of these
Answer: (c) Tertiary Industries (തൃതീയ വ്യവസായങ്ങൾ)
Question 12. (2023 Mar - 1 Mark)
What is the reward of business activity?
(a) Salary
(b) Fees
(c) Profit
(d) Wages
Answer: (c) Profit (ലാഭം)
Question 13. (2024 Mar - 1 Mark)
Transportation removes the hindrance of _____ in trading activities.
(a) Place
(b) Time
(c) Risk
(d) Finance
Answer: (a) Place (സ്ഥലം)
Question 14. (2022 Imp - 1 Mark)
Pick out the non-economic activity.
(a) Neethu cooks food for her children.
(b) Deepak works in an office.
(c) Adwaith teaches in a school.
(d) Dhwani runs a beauty parlour.
Answer: (a) Neethu cooks food for her children (നീതു കുട്ടികൾക്ക് ഭക്ഷണം ഉണ്ടാക്കുന്നത് സാമ്പത്തികേതര പ്രവർത്തനം)
Question 15. (2025 Mar - 1 Mark)
Which among the following is not an objective of business?
(a) Market standing
(b) Innovation
(c) Social responsibility
(d) Business risk
Answer: (d) Business risk (ബിസിനസ് റിസ്ക് ഒരു ലക്ഷ്യമല്ല)
Question 16. (2018 Imp - 2 Marks)
Fill in the blanks
Business → …………………. Profession → Fees Employment → ………………….
Answer: Business → Profit, Employment → Salary/Wages (ബിസിനസ് → ലാഭം, തൊഴിൽ → ശമ്പളം)
Question 17. (2020 Imp - 2 Marks)
Classify the following activities into economic and non-economic
a) Dr.Prakash runs a clinic
b) Mrs.Athulya paints a picture to gift on her daughter’s birthday
Answer: a) Economic (ഡോ. പ്രകാശ് ക്ലിനിക്ക് നടത്തുന്നു – സാമ്പത്തികം)
b) Non-economic (അതുല്യ മകളുടെ ജന്മദിനത്തിന് ചിത്രം വരക്കുന്നു – സാമ്പത്തികേതരം)
Question 18. (2021 Mar - 2 Marks)
Mohan, a teacher in Ernakulam bought a car for Rs.5 lakhs. After two months he sold it to Raju for Rs.6 lakhs. Is it a business activity? Why?
Answer: No, it is not a business activity. Because business requires regularity of transactions. This is a one-time sale. (ഇത് ബിസിനസ് അല്ല, കാരണം ബിസിനസ് ക്രമമായ ഇടപാടുകൾ ആവശ്യപ്പെടുന്നു. ഇത് ഒറ്റത്തവണ വിൽപ്പനയാണ്.)
Question 19. (2021 Imp - 2 Marks)
Element of risk is one of the main characteristics of business. List out any four other characteristics of business.
Answer: 1. Sale/exchange of goods and services (വിൽപ്പന/കൈമാറ്റം) 2. Regularity (ക്രമം) 3. Profit motive (ലാഭേച്ഛ) 4. Uncertainty of return (അനിശ്ചിതത്വം)
Question 20. (2022 Mar - 2 Marks)
List out any four multiple objectives of business.
Answer: 1. Profit (ലാഭം) 2. Innovation (നവീകരണം) 3. Market standing (വിപണി സ്ഥാനം) 4. Social responsibility (സാമൂഹിക ഉത്തരവാദിത്തം)
Question 21. (2022 Imp - 2 Marks)
Write any two examples for extractive industries.
Answer: Mining, Hunting, Fishing, Timbering (ഖനനം, വേട്ട, മത്സ്യബന്ധനം, മരം മുറിക്കൽ)
Question 22. (2024 Mar - 2 Marks)
Give any two examples of risk arising due to human cause.
Answer: Mismanagement, Strike, Theft, Power failure (തെറ്റായ മാനേജ്മെന്റ്, സമരം, മോഷണം, വൈദ്യുതി തകരാർ)
Question 23. (2025 Mar - 2 Marks)
Insert the following industries into appropriate columns: Transportation, Hunting, Fish-hatchery, Sugar industry
| Primary Industry | Secondary Industry |
|---|---|
| Genetic Industry: Fish-hatchery | Construction Industry: ? |
| Extractive Industry: Hunting | Manufacturing: Sugar industry |
Answer: Primary – Hunting (Extractive), Fish-hatchery (Genetic); Secondary – Sugar industry (Manufacturing); Transportation is Tertiary (not in table).
Question 24. (2018 Mar - 3 Marks)
Write any three differences between profession and employment.
Answer:
| Profession | Employment |
|---|---|
| 1. Requires specialised knowledge (പ്രത്യേക അറിവ് ആവശ്യം) | 1. Qualification as per job (ജോലിക്കനുസരിച്ച് യോഗ്യത) |
| 2. Reward is fee (പ്രതിഫലം ഫീസ്) | 2. Reward is salary/wages (പ്രതിഫലം ശമ്പളം) |
| 3. Governed by professional code (പ്രൊഫഷണൽ ചട്ടങ്ങൾ) | 3. Governed by employer's rules (തൊഴിലുടമയുടെ നിയമങ്ങൾ) |
Question 25. (2018 Imp - 4 Marks)
Explain any five factors that are important to be considered while starting a business.
Answer:
- Selection of line of business: Decide what product/service to offer. (ബിസിനസ് തരം തിരഞ്ഞെടുക്കൽ)
- Size of firm: Small, medium or large. (വലുപ്പം)
- Location: Near raw material or market. (സ്ഥലം)
- Finance: How much money needed and from where. (ധനകാര്യം)
- Legal formalities: Licenses, registrations. (നിയമപരമായ കാര്യങ്ങൾ)
Chapter 2: Forms of Business Organisation
Question 1. (2018 Mar - 1 Mark)
Which among the following is the main characteristic of Hindu Undivided Family business?
a) Single ownership
b) Transfer of membership
c) Membership by birth
d) Registration is compulsory
Answer: c) Membership by birth (ജന്മാവകാശം)
Question 2. (2018 Mar - 1 Mark)
'One man one vote' is the principle of ...... form of business organization.
a) Joint stock company
b) Partnership
Answer: Co-operative society (സഹകരണ സംഘം)
Question 3. (2018 Imp - 1 Mark)
Name a form of business organization found only in India.
Answer: Hindu Undivided Family (HUF) (ഹിന്ദു അവിഭക്ത കുടുംബം)
Question 4. (2019 Mar - 1 Mark)
Complete the series: Partnership – Partners ; Company – ?
Answer: Shareholders (ഓഹരി ഉടമകൾ)
Question 5. (2022 Mar - 1 Mark)
A _____ partner is one who allows the use of his/her name by a firm, but does not contribute to its capital.
(a) Active
(b) Sleeping
(c) Nominal
Answer: (c) Nominal (നാമമാത്ര പങ്കാളി)
Question 6. (2022 Imp - 1 Mark)
The liability of Karta in a Joint Hindu Family is:
(a) Limited
(b) Unlimited
(c) Ability
(d) None of these
Answer: (b) Unlimited (പരിധിയില്ലാത്ത ബാധ്യത)
Question 7. (2023 Mar - 1 Mark)
The elder most member of HUF business is known as
(a) Shareholder
(b) Karta
(c) Concurrences
(d) Partner
Answer: (b) Karta (കർത്താ)
Question 8. (2023 Imp - 1 Mark)
Which among the following is NOT related to a co-owner?
(a) One man, One vote
(b) Voluntary membership
(c) Profit
(d) Each for All and All for
Answer: (d) Each for All and All for – This is not a co-operative principle; co-operatives have "one man one vote".
Question 9. (2020 Imp - 1 Mark)
A co-operative society can be formed with a minimum of _____ adult members.
(a) 20
(b) 12
(c) 10
(d) 50
Answer: (c) 10 (10 അംഗങ്ങൾ)
Question 10. (2025 Mar - 1 Mark)
Identify the form of organization from given below.
Answer: (Options missing) Possibly HUF or Co-operative – but as per previous Q, HUF is unique to India.
Question 11. (2018 Imp - 2 Marks)
Co-parceners alone are the members of HUF business. Who is the head of such a business? Write about his liability.
Answer: Head is Karta. His liability is unlimited. (തലവൻ കർത്താ. അദ്ദേഹത്തിന്റെ ബാധ്യത പരിധിയില്ലാത്തതാണ്.)
Question 12. (2020 Mar - 2 Marks)
Write a short note on the following in one or two sentences.
(a) Nominal partner
(b) H.U.F.
Answer:
(a) Nominal partner – One who allows the use of his name but does not invest capital or take part in management. (നാമമാത്ര പങ്കാളി – പേര് മാത്രം കടം കൊടുക്കുന്നയാൾ)
(b) HUF – A business owned by members of a Hindu undivided family, governed by Hindu law, head is Karta. (ഹിന്ദു അവിഭക്ത കുടുംബ ബിസിനസ്)
Question 13. (2021 Mar - 2 Marks)
List any two privileges of a Private Company.
Answer: 1. Can start business after incorporation (no need for commencement certificate). 2. Less legal formalities. (സ്വകാര്യ കമ്പനിക്ക് കുറച്ച് നിയമ ഔപചാരികതകൾ)
Question 14. (2024 Mar - 2 Marks)
Name the following with reference to a Joint Stock Company:
(a) The official signature of a Joint Stock Company.
(b) The chief managing body elected by the shareholders.
Answer: (a) Common seal (കോമൺ സീൽ) (b) Board of Directors (ഡയറക്ടർ ബോർഡ്)
Question 15. (2018 Imp - 3 Marks)
"I am my own boss, everything is under my control". For which form of business organization the above statement is correct? Give any two merits of such business.
Answer: Sole proprietorship. Merits: Quick decision, personal touch, secrecy, full profit. (ഏക വ്യവസായ സ്ഥാപനം – വേഗത്തിലുള്ള തീരുമാനം, വ്യക്തിബന്ധം, രഹസ്യസ്വഭാവം)
Question 16. (2021 Mar & 2021 Imp - 3 Marks)
Write any 'three' features of a Co-operative society.
Answer: 1. Voluntary membership (സ്വമേധയാ അംഗത്വം) 2. One man one vote (ഒരാൾ ഒരു വോട്ട്) 3. Service motive (സേവന ലക്ഷ്യം)
Question 17. (2023 Mar - 3 Marks)
Write any three differences between Private company and Public company.
| Private Company | Public Company |
|---|---|
| Min 2, max 200 members | Min 7, no upper limit |
| Restriction on share transfer | Free transfer of shares |
| No need to issue prospectus | Must issue prospectus |
Question 18. (2023 Imp - 3 Marks)
Complete the table.
| Type of partner | Capital contribution | Managing the business | Profit sharing |
|---|---|---|---|
| (a) ? | Yes | Yes | Yes |
| Sleeping partner | Yes | No | ? |
| Nominal partner | ? | No | No |
Answer: (a) Active partner; Sleeping partner – Yes profit; Nominal partner – No capital. (സജീവ പങ്കാളി, ഉറങ്ങുന്ന പങ്കാളിക്ക് ലാഭം ലഭിക്കും, നാമമാത്ര പങ്കാളി മൂലധനം നൽകില്ല)
Question 19. (2025 Mar - 3 Marks)
Explain the following features of partnership in one sentence each: (a) Formation (b) Liability (c) Continuity
Answer:
(a) Formation – Partnership is formed by an agreement (written or oral). (കരാർ വഴി രൂപീകരണം)
(b) Liability – Partners have unlimited liability, jointly and severally. (പരിധിയില്ലാത്ത ബാധ്യത)
(c) Continuity – Partnership is dissolved on death/retirement of a partner. (തുടർച്ചയില്ല)
Question 20. (2018 Mar - 4 Marks)
Match the following:
| A | B |
|---|---|
| a) Formed by an agreement | i) Joint stock companies |
| b) Not sharing profits | ii) Co-operative societies |
| c) One man one vote | iii) Partnership business |
| d) Transferability of shares | iv) Sole Proprietorship |
Answer: a-iii, b-iv? (Not sharing profits – Sole proprietorship? Actually sole proprietor takes all profit, so not applicable. Better: b could be nominal partner, but here options are limited. Let's do correct matching: a-iii, b-? (None), c-ii, d-i. The question may have errors; we'll provide logical: a-iii, c-ii, d-i.
Chapter 3: Private, Public and Global Enterprises
Question 1. (2019 Mar - 1 Mark)
Which among the following is an example of departmental undertaking?
a) LIC
b) RBI
c) Doordarshan
d) KSRTC
Answer: c) Doordarshan (ദൂരദർശൻ – വകുപ്പ് സംരംഭം)
Question 2. (2020 Mar & 2020 Imp - 1 Mark)
A government company is any company in which the paid-up capital held by government is not less than ____.
(a) 49%
(b) 50%
(c) 51%
(d) 26%
Answer: (c) 51% (51% ഓഹരി സർക്കാരിന്)
Question 3. (2022 Mar - 1 Mark)
Find the odd one out.
(a) FCI
(b) RBI
(c) Indian Railway
(d) ONGC
Answer: (c) Indian Railway – It is a departmental undertaking; others are statutory corporations or companies. (ഇന്ത്യൻ റെയിൽവേ വകുപ്പ് സംരംഭം, മറ്റുള്ളവ നിയമപരമായ കോർപ്പറേഷനുകൾ)
Question 4. (2022 Imp - 1 Mark)
What is the minimum portion that the Government should hold in the paid up capital of a Government Company?
(a) 49%
(b) 51%
(c) 50%
(d) 25%
Answer: (b) 51%
Question 5. (2023 Mar - 1 Mark)
Identify the public enterprise where at least 51% share held by Government.
(a) Departmental Undertaking
(b) Public Corporations
(c) Government Company
(d) None of these
Answer: (c) Government Company
Question 6. (2023 Imp - 1 Mark)
The Government of India decided to sell the shares in Telecom department to private sector. Identify the suitable term to denote such an activity.
(a) Disinvestment
(b) Reconstruction
(c) Rehabilitation
(d) Reconstitution
Answer: (a) Disinvestment (വിനിയോഗം)
Question 7. (2024 Mar - 1 Mark)
Choose the characteristic which is NOT related to departmental undertaking.
(a) The revenue earned is paid into the Government Treasury.
(b) It is established by a Special Act of the Parliament or State Legislature.
(c) It is accountable to the concerned ministry.
(d) Its employees are government servants.
Answer: (b) It is established by a Special Act – This is for statutory corporations. (പ്രത്യേക നിയമത്താൽ രൂപീകരിക്കുന്നത് സ്റ്റാറ്റ്യൂട്ടറി കോർപ്പറേഷനാണ്)
Question 8. (2025 Mar - 1 Mark)
Expand P.P.P.
Answer: Public Private Partnership (പൊതു-സ്വകാര്യ പങ്കാളിത്തം)
Question 9. (2018 Mar - 2 Marks)
A public sector undertaking formed by passing an Act in Parliament. Identify it. Give an example.
Answer: Statutory corporation. Example: LIC, RBI. (നിയമപരമായ കോർപ്പറേഷൻ)
Question 10. (2018 Imp - 2 Marks)
Railways and Post and Telegram are the examples of this type of public sector undertakings. Identify the type of PSU and give two features of it.
Answer: Departmental undertaking. Features: 1. Funded by government treasury. 2. Employees are government servants. (വകുപ്പ് സംരംഭം – ട്രഷറിയിൽ നിന്ന് ധനസഹായം, ജീവനക്കാർ സർക്കാർ ജീവനക്കാർ)
Question 11. (2020 Mar - 2 Marks)
List any two features of a statutory corporation.
Answer: 1. Created by a Special Act of Parliament. 2. Has financial autonomy. (പ്രത്യേക നിയമത്താൽ രൂപീകരണം, സാമ്പത്തിക സ്വയംഭരണം)
Question 12. (2022 Imp - 2 Marks)
Write any two features of Global enterprises.
Answer: 1. Huge capital resources. 2. Advanced technology. (വൻ മൂലധനം, നൂതന സാങ്കേതികവിദ്യ)
Question 13. (2024 Mar - 2 Marks)
State any two features of a Government Company.
Answer: 1. Registered under Companies Act. 2. Government holds at least 51% shares. (കമ്പനി നിയമപ്രകാരം രജിസ്റ്റർ ചെയ്തത്, 51% ഓഹരി സർക്കാരിന്)
Question 14. (2024 Mar - 2 Marks)
What is disinvestment?
Answer: Disinvestment means government selling its shares in public sector enterprises to private sector. (സർക്കാർ തന്റെ ഓഹരികൾ സ്വകാര്യമേഖലയ്ക്ക് വിൽക്കുന്ന പ്രക്രിയ)
Question 15. (2018 Imp - 3 Marks)
Identify the public sector undertaking created by the Indian Companies Act, 1956. List any two merits of it.
Answer: Government Company. Merits: 1. Separate legal entity. 2. Quick decisions because it is registered under Companies Act. (സർക്കാർ കമ്പനി – പ്രത്യേക നിയമ വ്യക്തിത്വം, വേഗത്തിലുള്ള തീരുമാനം)
Question 16. (2019 Mar - 3 Marks)
Explain any three features of a statutory corporation.
Answer: 1. Created by a Special Act. 2. Owned by government but has independent financial setup. 3. Not subject to government accounting rules. (പ്രത്യേക നിയമത്താൽ രൂപീകരണം, സ്വതന്ത്ര സാമ്പത്തികം, സർക്കാർ കണക്ക് നിയമങ്ങൾക്ക് കീഴ്പ്പെടില്ല)
Question 17. (2019 Imp - 3 Marks)
Huge capital resources and use of advanced technologies are the specialties of global enterprises. Explain any other three features of these enterprises.
Answer: 1. Centralised control. 2. Foreign collaboration. 3. International operations. (കേന്ദ്രീകൃത നിയന്ത്രണം, വിദേശ സഹകരണം, അന്താരാഷ്ട്ര പ്രവർത്തനം)
Question 18. (2020 Mar - 3 Marks)
Briefly explain any three features of global enterprises.
Answer: 1. Huge capital. 2. Advanced technology. 3. Professional management. (വൻ മൂലധനം, നൂതന സാങ്കേതികവിദ്യ, പ്രൊഫഷണൽ മാനേജ്മെന്റ്)
Question 19. (2020 Imp - 3 Marks)
Classify the following public enterprises into Departmental, Statutory Corporation and Government Company: BHEL, RBI, Postal Department, Indian Railway, SAIL, AIR India
Answer:
Departmental: Postal Department, Indian Railway
Statutory Corporation: RBI, AIR India (formerly)
Government Company: BHEL, SAIL
Chapter 4: Business Services
Question 1. (2018 Mar - 1 Mark)
VSAT (Very Small Aperture Terminal) is satellite based ......
a) Rail transport Service
b) Communication service
c) Banking Service
d) Air Transport service
Answer: b) Communication service (ആശയവിനിമയ സേവനം)
Question 2. (2018 Imp - 1 Mark)
These are warehouses licensed by the Government to accept imported goods prior to Payment of tax and customs duty.
a) Private warehouses
b) Public warehouses
c) Government warehouses
d) Bonded warehouses
Answer: d) Bonded warehouses (ബോണ്ടഡ് വെയർഹൗസുകൾ)
Question 3. (2021 Mar - 1 Mark)
Warehousing provides _____ utility.
(a) Time
(b) Place
(c) Risk
(d) Finance
Answer: (a) Time (സമയ ഉപയുക്തത)
Question 4. (2021 Mar - 1 Mark)
Fill in the blanks as per hint given.
(a) State Bank of India – Public Sector Bank.
(b) HDFC Bank – ?
Answer: Private Sector Bank (സ്വകാര്യമേഖല ബാങ്ക്)
Question 5. (2021 Imp - 1 Mark)
Which is the Central Bank of India?
(a) State Bank of India
(b) Reserve Bank of India
(c) Central Bank of India
(d) Bank of India
Answer: (b) Reserve Bank of India (റിസർവ് ബാങ്ക് ഓഫ് ഇന്ത്യ)
Question 6. (2022 Mar - 1 Mark)
The warehouses which are licensed by the government to accept imported goods before the payment of tax and customs duty are called
(a) Bonded warehouses
(b) Private warehouses
(c) Government warehouses
(d) Public warehouses
Answer: (a) Bonded warehouses
Question 7. (2022 Imp - 1 Mark)
Which one of the following is not a form of e-banking services?
(a) Automated Teller Machine (ATM)
(b) Point of Sale (PoS)
(c) Cheque
(d) Electronic Fund Transfer (EFT)
Answer: (c) Cheque (it is traditional banking, not e-banking) (ചെക്ക് ഇ-ബാങ്കിംഗ് അല്ല)
Question 8. (2023 Mar - 1 Mark)
Identify the bank which controls the operations of all commercial banks in the country.
(a) Co-operative Bank
(b) Central Bank
(c) Specialised Bank
(d) Nationalised Bank
Answer: (b) Central Bank (RBI) (കേന്ദ്ര ബാങ്ക്)
Question 9. (2023 Imp - 1 Mark)
VSAT is closely associated with:
(a) e-banking
(b) Marine insurance
(c) Telecom services
(d) Internal trade
Answer: (a) e-banking (often used for remote banking) (ഇ-ബാങ്കിംഗുമായി ബന്ധപ്പെട്ടിരിക്കുന്നു)
Question 10. (2025 Mar - 1 Mark)
Which of the following is not a nature of service?
(a) Intangibility
(b) Innovative
(c) Inconsistency
(d) Inseparability
Answer: (b) Innovative (service has intangibility, inconsistency, inseparability) (സേവനത്തിന്റെ സ്വഭാവമല്ല നവീകരണം)
Question 11. (2019 Mar - 2 Marks)
Bring out any two features of business services.
Answer: 1. Intangibility (അദൃശ്യത) 2. Inseparability (വേർതിരിക്കാനാവാത്തത്)
Question 12. (2019 Imp - 2 Marks)
Name any two companies that provide DTH services in India.
Answer: Tata Sky, Dish TV (ടാറ്റ സ്കൈ, ഡിഷ് ടിവി)
Question 13. (2022 Mar - 2 Marks)
List out any four basic features of Business service.
Answer: Intangibility, Inseparability, Inconsistency, Inventory (perishability) (അദൃശ്യത, വേർതിരിക്കാനാവാത്തത്, ഏകീകൃതമല്ലാത്തത്, നശിക്കുന്ന സ്വഭാവം)
Question 14. (2022 Imp - 2 Marks)
Write any two differences between goods and services.
| Goods | Services |
|---|---|
| Tangible | Intangible |
| Can be stored | Cannot be stored |
Question 15. (2024 Mar - 2 Marks)
Write a short note on Central Bank.
Answer: Central Bank is the apex bank that controls the entire banking system of a country. In India, RBI is the central bank. It issues currency, controls credit, and regulates commercial banks. (കേന്ദ്ര ബാങ്ക് രാജ്യത്തെ ബാങ്കിംഗ് സംവിധാനത്തെ നിയന്ത്രിക്കുന്നു)
Question 16. (2019 Mar - 3 Marks)
Distinguish between public warehouses and bonded warehouses.
| Public Warehouses | Bonded Warehouses |
|---|---|
| Owned by government or private agencies | Licensed by government to store imported goods |
| Used by general public | Used for goods on which customs duty is not yet paid |
Question 17. (2019 Imp - 3 Marks)
List out any three allied services provided by commercial banks.
Answer: 1. ATM services, 2. Internet banking, 3. locker facility (എടിഎം, ഇന്റർനെറ്റ് ബാങ്കിംഗ്, ലോക്കർ സൗകര്യം)
Question 18. (2024 Mar - 3 Marks)
Write any three benefits of e-banking.
Answer: 1. 24x7 service (24 മണിക്കൂർ സേവനം) 2. Anywhere access (എവിടെനിന്നും പ്രവേശനം) 3. Quick transactions (വേഗത്തിലുള്ള ഇടപാടുകൾ)
Question 19. (2018 Mar - 4 Marks)
Distinguish between goods and services.
Answer: (Table with 4 points)
| Basis | Goods | Services |
|---|---|---|
| Nature | Tangible | Intangible |
| Storage | Can be stored | Cannot be stored |
| Ownership | Can be transferred | Cannot be owned |
| Production & consumption | Separate | Simultaneous |
Question 20. (2018 Imp - 4 Marks)
What you mean by e-banking? Give two examples for e-banking services.
Answer: E-banking means using electronic channels to access banking services. Examples: ATM, Internet banking, Mobile banking, EFT. (ഇ-ബാങ്കിംഗ് – ഇലക്ട്രോണിക് മാർഗങ്ങൾ വഴി ബാങ്കിംഗ് സേവനങ്ങൾ)
Question 21. (2021 Mar - 4 Marks)
Explain any four types of Warehouses operating in our country.
Answer:
1. Private warehouses – owned by individuals for their own use.
2. Public warehouses – available for rent to general public.
3. Bonded warehouses – licensed to store imported goods till customs duty paid.
4. Government warehouses – owned and operated by government. (സ്വകാര്യ, പൊതു, ബോണ്ടഡ്, സർക്കാർ വെയർഹൗസുകൾ)
Question 22. (2022 Mar - 4 Marks)
Write a short note on different types of banks.
Answer: 1. Central Bank (RBI) – controls banking system. 2. Commercial banks – accept deposits and give loans (SBI, HDFC). 3. Co-operative banks – serve small borrowers. 4. Specialised banks – EXIM, NABARD. (കേന്ദ്ര ബാങ്ക്, വാണിജ്യ ബാങ്കുകൾ, സഹകരണ ബാങ്കുകൾ, പ്രത്യേക ബാങ്കുകൾ)
Question 23. (2022 Imp - 4 Marks)
Explain briefly the functions of a commercial Bank.
Answer: 1. Accepting deposits (saving, current, fixed). 2. Giving loans and advances. 3. Agency services (collection of cheques, payment of bills). 4. General services (locker, internet banking). (നിക്ഷേപ സ്വീകരണം, വായ്പ നൽകൽ, ഏജൻസി സേവനങ്ങൾ, പൊതു സേവനങ്ങൾ)
Chapter 5: Emerging Modes of Business
Question 1. (2018 Imp - 1 Mark)
TATA Ltd., purchases tyres from MRF Ltd. This is an example of...
a) B2C Commerce
b) C2C Commerce
c) Intra B Commerce
d) B2B Commerce
Answer: d) B2B Commerce (ബിസിനസ് ടു ബിസിനസ്)
Question 2. (2020 Mar - 1 Mark)
Cash withdrawal by a customer by using ATM is an example of e-business transaction.
(a) B2B
(b) B2C
(c) Intra B
(d) C2C
Answer: (b) B2C (ബിസിനസ് ടു കൺസ്യൂമർ)
Question 3. (2021 Mar - 1 Mark)
List any 'one' method of payment mechanism in online transactions.
Answer: Credit card, Debit card, EFT, Digital cash, Cash on delivery (ക്രെഡിറ്റ് കാർഡ്, ഡെബിറ്റ് കാർഡ്, ഇഎഫ്ടി, ഡിജിറ്റൽ ക്യാഷ്, കാഷ് ഓൺ ഡെലിവറി)
Question 4. (2021 Imp - 1 Mark)
Drawing money from ATM is an example of _____ model of e-commerce.
(a) B2B
(b) B2E
(c) B2G
(d) B2C
Answer: (d) B2C
Question 5. (2023 Mar - 1 Mark)
Find the odd one out.
(a) Point of Sale
(b) Electronic Fund Transfer
(c) Digital Cash
(d) Cash Payment at the counter
Answer: (d) Cash Payment at the counter – it is traditional, not online. (ഓൺലൈൻ അല്ല)
Question 6. (2023 Mar - 1 Mark)
Identify the resources required for the successful implementation of E-business.
(a) Computer
(b) Trained workforce
(c) Website
(d) All of these
Answer: (d) All of these (ഇവയെല്ലാം)
Question 7. (2023 Imp - 1 Mark)
Interaction and dealings among the various departments and persons within the firm is known as:
(a) B2B Commerce
(b) Intra-B Commerce
(c) B2C Commerce
(d) C2C Commerce
Answer: (b) Intra-B Commerce (ആന്തരിക ഇടപാടുകൾ)
Question 8. (2024 Mar - 1 Mark)
Manjusha orders some old books through OLX from Pramitha. It is an example of:
(a) C2C Transactions
(b) B2C Transactions
(c) B2B Transactions
(d) None of these
Answer: (a) C2C Transactions (കൺസ്യൂമർ ടു കൺസ്യൂമർ)
Question 9. (2025 Mar - 1 Mark)
Mr. Babu sells his car to Mr. Suku through OLX. Which of the following mode of transaction is this?
(a) B2B
(b) B2C
(c) C2C
(d) Intra B
Answer: (c) C2C
Question 10. (2018 Mar, 2019 Mar, 2020 Mar & 2022 Mar - 2 Marks)
Suggest any two payment mechanisms used in e-business.
Answer: 1. Credit/Debit card (ക്രെഡിറ്റ്/ഡെബിറ്റ് കാർഡ്) 2. Electronic Fund Transfer (EFT) (ഇലക്ട്രോണിക് ഫണ്ട് ട്രാൻസ്ഫർ)
Question 11. (2020 Imp - 2 Marks)
Identify the e-business model from the following: a) Sale of second hand goods, b) Payment made to distributors
Answer: a) C2C, b) B2B (ഉപയോഗിച്ച സാധനങ്ങളുടെ വിൽപ്പന – C2C, വിതരണക്കാർക്കുള്ള പേയ്മെന്റ് – B2B)
Question 12. (2022 Imp - 2 Marks)
Write any two examples of B2C transactions.
Answer: 1. Buying a book from Amazon. 2. ATM withdrawal. (ആമസോണിൽ നിന്ന് പുസ്തകം വാങ്ങുക, എടിഎമ്മിൽ നിന്ന് പണം എടുക്കുക)
Question 13. (2023 Mar & 2022 Imp - 2 Marks)
Write two differences between Traditional Business and E-business.
| Traditional Business | E-business |
|---|---|
| Physical presence needed | Online presence |
| Limited reach | Global reach |
Question 14. (2024 Mar - 2 Marks)
Mention any two limitations of e-business.
Answer: 1. Security risk (സുരക്ഷാ പ്രശ്നങ്ങൾ) 2. Lack of personal touch (വ്യക്തിബന്ധമില്ലായ്മ)
Question 15. (2023 Mar - 3 Marks)
Complete the diagram with given hints: B2B, C2C, B2C, Intra B
Answer: (Diagram description) B2B – Giving order for raw material; B2C – Selling to consumer; C2C – Selling second hand; Intra B – Internal dealings. (B2B – അസംസ്കൃത വസ്തുക്കൾക്ക് ഓർഡർ നൽകൽ; B2C – ഉപഭോക്താവിന് വിൽപ്പന; C2C – ഉപയോഗിച്ച സാധനങ്ങളുടെ വിൽപ്പന; Intra B – ആന്തരിക ഇടപാടുകൾ)
Question 16. (2023 Imp - 3 Marks)
Name any three transaction-risks in e-business.
Answer: 1. Hacking, 2. Phishing, 3. Credit card fraud. (ഹാക്കിംഗ്, ഫിഷിംഗ്, ക്രെഡിറ്റ് കാർഡ് തട്ടിപ്പ്)
Question 17. (2024 Mar - 3 Marks)
Mention the three transaction risks involved in online transactions.
Answer: 1. Data theft, 2. Identity theft, 3. Financial fraud. (ഡാറ്റ മോഷണം, ഐഡന്റിറ്റി മോഷണം, സാമ്പത്തിക തട്ടിപ്പ്)
Chapter 6: Social Responsibility of Business and Business Ethics
Question 1. (2018 Mar - 1 Mark)
Which among the following is against business ethics?
a) Using fair weights and measures
b) Fair treatment to workers
c) Earning reasonable profits
d) Charging unfair price
Answer: d) Charging unfair price (ന്യായമല്ലാത്ത വില ഈടാക്കുക)
Question 2. (2019 Mar - 1 Mark)
Give one example for discretionary responsibility of business.
Answer: Donating to flood relief (പ്രളയ ദുരിതാശ്വാസത്തിന് സംഭാവന നൽകുക)
Question 3. (2019&2022 Imp - 1 Mark)
Respecting the religious sentiments and dignity of people in advertising a product is an example of _____ responsibility.
(a) Legal
(b) Ethical
(c) Economic
(d) Discretionary
Answer: (b) Ethical (ധാർമ്മിക ഉത്തരവാദിത്തം)
Question 4. (2020 Mar - 1 Mark)
Fill in the blanks as per hint given:
(a) Obeyance of law – Legal responsibility of business.
(b) Respecting religious sentiments of people – ?
Answer: Ethical responsibility (ധാർമ്മിക ഉത്തരവാദിത്തം)
Question 5. (2020 Imp - 1 Mark)
Selling adulterated goods is against _____ responsibility of business.
a) Economical
b) Ethical
c) Discretionary
d) None of these
Answer: b) Ethical (ധാർമ്മിക ഉത്തരവാദിത്തത്തിന് എതിരാണ്)
Question 6. (2021 Mar - 1 Mark)
Respecting religious sentiments of society is an example of _____ kind of social responsibility of business.
(a) Ethical
(b) Legal
(c) Economic
(d) Discriminating
Answer: (a) Ethical
Question 7. (2021 Imp - 1 Mark)
Smoke from factories causes _____ type of pollution.
(a) land
(b) air
(c) water
(d) noise
Answer: (b) air (വായു മലിനീകരണം)
Question 8. (2022 Mar - 1 Mark)
Carbon monoxide emitted by automobiles causes _____ pollution.
(a) Water
(b) Land
(c) Noise
(d) Air
Answer: (d) Air
Question 9. (2023 Mar - 1 Mark)
Emission of toxic gases leads _____ pollution.
Answer: Air (വായു മലിനീകരണം)
Question 10. (2023 Imp - 1 Mark)
Business Ethics include:
(a) Earning reasonable profit
(b) Accurate weight and measures
(c) Fair treatment to employees
(d) All of these
Answer: (d) All of these (ഇവയെല്ലാം)
Question 11. (2024 Mar - 1 Mark)
One of the following is against the business ethics. Spot it.
(a) Installing pollution control devices
(b) Giving dishonest advertisements
(c) Earning reasonable and justifiable profit
(d) Using fair weights and measures for products
Answer: (b) Giving dishonest advertisements (വ്യാജ പരസ്യം)
Question 12. (2025 Mar - 1 Mark)
A business organisation contributing towards the flood affected people, is an example of _____ responsibility.
(a) Economic
(b) Legal
(c) Ethical
(d) Discretionary
Answer: (d) Discretionary (വിവേചനാധികാര ഉത്തരവാദിത്തം)
Question 13. (2018 Mar - 2 Marks)
Write any two social responsibilities of business towards consumers.
Answer: 1. Supply quality goods (ഗുണമേന്മയുള്ള ഉൽപ്പന്നങ്ങൾ നൽകുക) 2. Charge fair price (ന്യായ വില ഈടാക്കുക)
Question 14. (2018 Imp - 2 Marks)
'Charging fair prices from customers' is an example for business ethics. Give two more examples for business ethics.
Answer: 1. Using accurate weights and measures. 2. Fair treatment to employees. (കൃത്യമായ അളവുകൾ ഉപയോഗിക്കുക, തൊഴിലാളികളോട് നീതി പുലർത്തുക)
Question 15. (2019 Mar - 2 Marks)
Anu and Verghese are working in a business organization doing the same job. Anu is paid Rs.500 per day, while Verghese is at Rs.750. Is the act of management genuine? Why?
Answer: No, it is against ethics because equal pay for equal work is a principle of business ethics. (ഇത് ധാർമ്മികതയ്ക്ക് എതിരാണ് – തുല്യ ജോലിക്ക് തുല്യ വേതനം എന്നത് ബിസിനസ് എത്തിക്സിന്റെ ഭാഗമാണ്.)
Question 16. (2019 Imp - 2 Marks)
Briefly explain any two arguments against social responsibility of business.
Answer: 1. Profit maximization is the main goal, social responsibility reduces profit. 2. Business lacks social skills to handle social issues. (ലാഭം കുറയും, സാമൂഹിക പ്രശ്നങ്ങൾ കൈകാര്യം ചെയ്യാനുള്ള കഴിവില്ല)
Question 17. (2020 Imp - 2 Marks)
List any two elements of business ethics.
Answer: 1. Honesty (സത്യസന്ധത) 2. Fairness (ന്യായം)
Question 18. (2023 Mar - 2 Marks)
Complete the following as per the hint given:
| A: Produce goods and service that society want and sell them at a profit. | Economic responsibility |
| B: Responsibility to operate within the laws of the country | ? |
| C: Helping people of affected area of natural calamity. | ? |
Answer: B: Legal responsibility, C: Discretionary responsibility. (B: നിയമപരമായ ഉത്തരവാദിത്തം, C: വിവേചനാധികാര ഉത്തരവാദിത്തം)
Question 19. (2023 Imp - 2 Marks)
Write any two arguments against social responsibility of business.
Answer: 1. It increases cost and reduces profit. 2. Business may not have the expertise to solve social problems. (ചെലവ് കൂട്ടുകയും ലാഭം കുറയ്ക്കുകയും ചെയ്യും, വൈദഗ്ധ്യമില്ലായ്മ)
Question 20. (2024 Mar - 2 Marks)
Point out any two arguments in favour of social responsibility of business.
Answer: 1. Improves public image. 2. Long-term survival of business. (പൊതു പ്രതിച്ഛായ മെച്ചപ്പെടുത്തുന്നു, ദീർഘകാല നിലനിൽപ്പ്)
Question 21. (2025 Mar - 2 Marks)
Write any two elements of business ethics.
Answer: 1. Transparency (സുതാര്യത) 2. Accountability (ഉത്തരവാദിത്തം)
Chapter 7: Formation of a Company
Question 1. (2018 Mar - 1 Mark)
Identify the document issued by public companies to invite public to subscribe to its shares.
a) Prospectus
b) Memorandum of association
c) Table A
d) Articles of association
Answer: a) Prospectus (പ്രോസ്പെക്ടസ്)
Question 2. (2018 Imp - 1 Mark)
Rules regarding internal management of a company, is mentioned in the _____
a) Memorandum of Association
b) Articles of Association
c) Prospectus
d) Certificate of incorporation
Answer: b) Articles of Association (അസോസിയേഷൻ ആർട്ടിക്കിൾസ്)
Question 3. (2020 Mar - 1 Mark)
Which clause of memorandum of association defines the purpose of company is formed?
(a) Object clause
(b) Capital clause
(c) Liability clause
(d) Name clause
Answer: (a) Object clause (ലക്ഷ്യ വ്യവസ്ഥ)
Question 4. (2022 Mar - 1 Mark)
Name any two documents to be submitted before Registrar of Companies for getting a company registered.
Answer: Memorandum of Association, Articles of Association. (മെമ്മോറാണ്ടം, ആർട്ടിക്കിൾസ്)
Question 5. (2022 Imp - 1 Mark)
The first stage in the formation of a company is:
(a) Promotion
(b) Incorporation
(c) Raising of capital
(d) Commencement of business
Answer: (a) Promotion (പ്രമോഷൻ)
Question 6. (2024 Mar - 1 Mark)
Find the odd one.
(a) Capital clause
(b) Liability clause
(c) Declaration clause
(d) Object clause
Answer: (c) Declaration clause – It is not a clause of MOA; MOA has name, object, liability, capital, subscription, association clauses. (ഡിക്ലറേഷൻ ക്ലോസ് എംഒഎയുടെ ഭാഗമല്ല)
Question 7. (2025 Mar - 1 Mark)
A prospectus is issued by
(a) Private company
(b) Co-operative society
(c) Public company
(d) Partnership firm
Answer: (c) Public company (പബ്ലിക് കമ്പനി)
Question 8. (2020 Imp - 2 Marks)
What is minimum subscription?
Answer: Minimum subscription is the minimum amount that a company must raise from the public before it can proceed with allotment of shares. It is 90% of the issued amount. (കുറഞ്ഞ സബ്സ്ക്രിപ്ഷൻ – പൊതുജനങ്ങളിൽ നിന്ന് സ്വരൂപിക്കേണ്ട ഏറ്റവും കുറഞ്ഞ തുക)
Question 9. (2021 Mar - 2 Marks)
List out the stages in the formation of a Private Company.
Answer: 1. Promotion, 2. Incorporation. (Private company need not go through capital subscription and commencement stages if it doesn't invite public). (പ്രമോഷൻ, ഇൻകോർപ്പറേഷൻ)
Question 10. (2021 Imp - 2 Marks)
Feasibility study of business opportunity involves Technical feasibility, _____ and _____.
Answer: Financial feasibility, Economic feasibility. (സാങ്കേതിക, സാമ്പത്തിക, ആർഥിക സാദ്ധ്യതകൾ)
Question 11. (2022 Mar - 2 Marks)
Narrate any two functions performed by a promoter.
Answer: 1. Identifies business opportunity. 2. Brings together resources (capital, manpower). (ബിസിനസ് അവസരം കണ്ടെത്തുക, വിഭവങ്ങൾ ശേഖരിക്കുക)
Question 12. (2022 Imp - 2 Marks)
Two important documents of a company are mentioned in the following statements. Write their names:
(a) It defines the objectives of the company.
(b) It defines the rules regarding the internal management of the company.
Answer: (a) Memorandum of Association, (b) Articles of Association.
Question 13. (2023 Mar - 2 Marks)
Complete the diagram: Stages of formation of company → Promotion → ? → Subscription of capital → ?
Answer: Promotion → Incorporation → Subscription of capital → Commencement of business. (പ്രമോഷൻ → ഇൻകോർപ്പറേഷൻ → സബ്സ്ക്രിപ്ഷൻ → കമ്മൻസ്മെന്റ്)
Question 14. (2023 Imp - 2 Marks)
Fill in the blanks suitably.
(a) The sum total of all activities which are necessary for bringing the company into existence is called _____.
(b) The first and foremost duty of a promoter is to identify _____.
Answer: (a) Promotion, (b) business opportunity. (പ്രമോഷൻ, ബിസിനസ് അവസരം)
Question 15. (2025 Mar - 2 Marks)
List out any four functions of a promoter.
Answer: 1. Identify business opportunity. 2. Conduct feasibility study. 3. Assemble resources. 4. Prepare necessary documents (MOA, AOA). (ബിസിനസ് അവസരം കണ്ടെത്തുക, സാദ്ധ്യത പഠനം, വിഭവങ്ങൾ ശേഖരിക്കുക, രേഖകൾ തയ്യാറാക്കുക)
Chapter 8: Sources of Business Finance
Question 1. (2018 Mar & 2019 Mar - 1 Mark)
Fill in the series as per hint given: a) Equity shares – Owned capital, b) Debentures – ?
Answer: Borrowed capital (കടമെടുത്ത മൂലധനം)
Question 2. (2019 Mar - 1 Mark)
Find the odd one out:
a) Trade credit
b) Certificate of deposit
c) Bank overdraft
d) Ploughing back of profits
Answer: d) Ploughing back of profits (it is internal source, others are external) (ലാഭം പുനർനിക്ഷേപം ആന്തരിക സ്രോതസ്സ്)
Question 3. (2019 Imp - 1 Mark)
A company wants to purchase a plant and machinery as a part of its modernization programme. Identify the type of fund required.
(a) Short-term capital
(b) Working capital
(c) Fixed capital
(d) None of these
Answer: (c) Fixed capital (സ്ഥിര മൂലധനം)
Question 4. (2019 Imp - 1 Mark)
Which of the following is not an external source of finance?
(a) Preference share
(b) Public deposits
(c) Commercial Paper
(d) Equity share
Answer: (d) Equity share (it is owned capital, but actually equity can be external if issued to public; however preference share also external. Trick: All except retained earnings are external. But equity and preference are both external if issued. Possibly the answer is (d) if considering equity as owned? But in options, all are external except retained earnings. Since retained earnings not here, maybe they consider equity as internal? Usually equity is external. Let's check: Preference share, public deposits, commercial paper are all borrowed. Equity is also external (from shareholders). So none? The question might have a mistake. We'll go with (d) as odd? But better: actually all are external. Perhaps answer is none. However, as per common sense, equity share is also external source. We'll keep it as per key: Often in some textbooks, equity is considered internal? No. We'll note that the question might be wrong. But for answer, we'll say: All are external, but if we must choose, perhaps they consider preference share as external and equity as internal? That's incorrect. We'll provide: All are external sources. (എല്ലാം ബാഹ്യ സ്രോതസ്സുകളാണ്)
Question 5. (2020 Imp - 1 Mark)
The maturity period of commercial paper is...
a) 20-40 days
b) 60-90 days
c) 90-364 days
d) 120-365 days
Answer: c) 90-364 days (90 മുതൽ 364 ദിവസം വരെ)
Question 6. (2021 Mar - 1 Mark)
Identify the document which acknowledges debt of a company.
(a) Share
(b) Debenture
(c) Stock
(d) All of these
Answer: (b) Debenture (ഡിബെഞ്ചർ)
Question 7. (2021 Imp - 1 Mark)
Find odd one out.
(a) Equity share
(b) Debentures
(c) Preference shares
(d) Retained earnings
Answer: (d) Retained earnings – internal source, others are external. (ലാഭം പുനർനിക്ഷേപം ആന്തരികം)
Question 8. (2022 Mar - 1 Mark)
_____ is an unsecured promissory note issued by a firm to raise funds for a short period varying from 90 days to 364 days.
(a) Equity share
(b) Trade credit
(c) Debentures
(d) Commercial paper
Answer: (d) Commercial paper (കൊമേഴ്സ്യൽ പേപ്പർ)
Question 9. (2022 Imp - 1 Mark)
The internal source of finance include:
(a) Factoring
(b) Debentures
(c) Retained earnings
(d) Bank loan
Answer: (c) Retained earnings (ലാഭം പുനർനിക്ഷേപം)
Question 10. (2023 Mar - 1 Mark)
Identify the internal sources of finance from the following:
(a) Retained earning
(b) Debenture
(c) Term loans
(d) Public deposits
Answer: (a) Retained earning
Question 11. (2023 Imp - 1 Mark)
Debenture holders are termed as:
(a) Owners of the company
(b) Partners of the company
(c) Promoters of the company
(d) Creditors of the company
Answer: (d) Creditors of the company (കമ്പനിയുടെ കടക്കാർ)
Question 12. (2024 Mar - 1 Mark)
Make the correct pair as per the hint given. (Image missing) – likely relating to types of shares.
Answer: (Assuming: Equity shares – ownership, Debentures – loan)
Question 13. (2025 Mar - 1 Mark)
Complete the series as per hint given: Debentures – Interest; Shares – ?
Answer: Dividend (ഡിവിഡന്റ്)
Question 14. (2018 Mar - 2 Marks)
Write any two merits of retained earnings as a source of finance.
Answer: 1. No cost (no interest/dividend to pay). 2. No dilution of control. (ചെലവില്ല, നിയന്ത്രണത്തിൽ മാറ്റമില്ല)
Question 15. (2018 Imp - 2 Marks)
Some business organizations outsource their debt collection to outside agencies. Name this arrangement. List one merit of it.
Answer: Factoring. Merit: Quick conversion of receivables into cash. (ഫാക്ടറിംഗ് – കടം പെട്ടെന്ന് പണമാക്കാം)
Question 16. (2019 Mar - 2 Marks)
What do you mean by ploughing back of profits?
Answer: Ploughing back of profits means reinvesting a part of the profit into the business rather than distributing it as dividend. (ലാഭത്തിന്റെ ഒരു ഭാഗം വീണ്ടും ബിസിനസിൽ നിക്ഷേപിക്കുക)
Question 17. (2019 Imp - 2 Marks)
"As a source of finance retained earnings is a better option than other sources." Justify the statement.
Answer: Retained earnings are internal, no cost, no dilution of control, no need to pay interest or dividend. (ആന്തരികം, ചെലവില്ല, നിയന്ത്രണത്തിൽ മാറ്റമില്ല)
Question 18. (2020 Mar - 2 Marks)
What do you mean by Retained Earnings?
Answer: Retained earnings are the portion of net profit that is kept in the business for future use instead of distributing as dividend. (ലാഭത്തിന്റെ ഭാഗം ബിസിനസിൽ നിലനിർത്തുന്നത്)
Question 19. (2021 Mar - 2 Marks)
What do you mean by working capital?
Answer: Working capital is the capital required for day-to-day operations, e.g., raw materials, salaries, etc. (പ്രവർത്തന മൂലധനം – ദൈനംദിന ആവശ്യങ്ങൾക്ക്)
Question 20. (2021 Imp - 2 Marks)
What are the preferential right of a Preference Shareholder?
Answer: 1. Right to receive dividend before equity shareholders. 2. Right to get capital back before equity shareholders at the time of winding up. (ഡിവിഡന്റിനും മൂലധന തിരിച്ചടവിനും മുൻഗണന)
Question 21. (2022 Mar - 2 Marks)
Briefly explain trade credit as a short-term source of finance.
Answer: Trade credit is when a supplier allows a business to buy goods now and pay later. It is a short-term finance because payment is due in a short period (30-90 days). (വ്യാപാര വായ്പ – സാധനങ്ങൾ വാങ്ങി പിന്നീട് പണം നൽകൽ)
Question 22. (2023 Mar - 2 Marks)
What is Factoring?
Answer: Factoring is a financial service where a business sells its accounts receivable (bills) to a factor (a financial institution) at a discount to get immediate cash. (ഫാക്ടറിംഗ് – കുടിശ്ശിക വിൽക്കുക)
Question 23. (2023 Imp - 2 Marks)
Give the meaning of retained earnings.
Answer: Retained earnings are the accumulated profits of a company that are not distributed as dividends but kept for reinvestment. (ശേഖരിച്ച ലാഭം പുനർനിക്ഷേപത്തിനായി സൂക്ഷിക്കുന്നത്)
Question 24. (2024 Mar - 2 Marks)
What do you mean by Retained Earnings?
Answer: Same as above.
Question 25. (2025 Mar - 2 Marks)
What are the preferences given to a preference share?
Answer: 1. Preference in dividend payment. 2. Preference in repayment of capital at winding up. (ഡിവിഡന്റിലും മൂലധന തിരിച്ചടവിലും മുൻഗണന)
Chapter 9: Small Business and Entrepreneurship Development
Question 1. (2022 Imp - 1 Mark)
Examples for traditional industries include:
(a) Hand looms
(b) Coir industries
(c) Handicrafts
(d) All of these
Answer: (d) All of these (ഇവയെല്ലാം)
Question 2. (2021 Mar - 2 Marks)
Briefly explain any two problems faced by small business in India.
Answer: 1. Lack of finance – difficulty in getting loans. 2. Outdated technology – cannot afford modern machines. (ധനസഹായമില്ലായ്മ, കാലഹരണപ്പെട്ട സാങ്കേതികവിദ്യ)
Question 3. (2021 Imp - 2 Marks)
List out any two features of cottage industries.
Answer: 1. Family labour is used. 2. Simple tools and equipment. (കുടുംബത്തൊഴിലാളികൾ, ലളിതമായ ഉപകരണങ്ങൾ)
Question 4. (2025 Mar - 2 Marks)
Point out any four characteristics of entrepreneurship.
Answer: 1. Innovation (നവീകരണം) 2. Risk-taking (അപകടസാധ്യത ഏറ്റെടുക്കൽ) 3. Organizing resources (വിഭവങ്ങൾ സംഘടിപ്പിക്കൽ) 4. Leadership (നേതൃത്വം)
Question 5. (2018 Mar - 3 Marks)
List out any three features of cottage industries.
Answer: 1. Owned and operated by individuals. 2. Use of local raw materials. 3. Labour-intensive. (വ്യക്തി ഉടമസ്ഥത, പ്രാദേശിക അസംസ്കൃത വസ്തുക്കൾ, തൊഴിൽ സാന്ദ്രത)
Question 6. (2021 Imp - 3 Marks)
Small business units in India are facing many problems. Briefly explain any three such problems.
Answer: 1. Finance problem – lack of collateral for loans. 2. Raw material problem – scarcity or high cost. 3. Marketing problem – cannot compete with big companies. (ധനസഹായം, അസംസ്കൃത വസ്തുക്കളുടെ പ്രശ്നം, വിപണന പ്രശ്നം)
Question 7. (2025 Mar - 3 Marks)
Briefly explain any three problems faced by MSME.
Answer: 1. Lack of skilled labour. 2. Poor infrastructure. 3. Delay in payments. (വൈദഗ്ധ്യമുള്ള തൊഴിലാളികളുടെ കുറവ്, മോശം അടിസ്ഥാന സൗകര്യം, പേയ്മെന്റ് കാലതാമസം)
Chapter 10: Internal Trade
Question 1. (2018 Mar - 1 Mark)
Find the odd one from the following:
a) Super markets
b) Multiple shops
c) Market traders
d) Mail Order Houses
Answer: c) Market traders – they are itinerant, others are fixed shops. (മാർക്കറ്റ് ട്രേഡേഴ്സ് അലഞ്ഞുതിരിയുന്നവർ)
Question 2. (2018 Imp - 1 Mark)
They are petty retailers who have independent shops of a temporary nature and change their business from one locality to another.
a) Peddlers
b) Street traders
c) Cheap jacks
d) Market traders
Answer: c) Cheap jacks (ചീപ്പ് ജാക്കുകൾ)
Question 3. (2019 Mar - 1 Mark)
Suggest the products which are suitable for dealing through vending machines.
Answer: Soft drinks, snacks, chocolates, newspapers. (കുപ്പി പാനീയങ്ങൾ, ലഘുഭക്ഷണം, ചോക്ലേറ്റ്, പത്രം)
Question 4. (2019 Imp - 1 Mark)
Find the odd one.
(a) General stores
(b) Specialty shops
(c) Street stall holders
(d) Cheap jacks
Answer: (c) and (d) are itinerant, (a) and (b) are fixed. The odd one among fixed? Actually both (c) and (d) are itinerant, so question may have two odd? But typical answer: (c) Street stall holders are also itinerant. We'll say (a) General stores is fixed, others itinerant. But question asks odd one, maybe (a) is odd because it is fixed. (ജനറൽ സ്റ്റോറുകൾ സ്ഥിരം, മറ്റുള്ളവ അലഞ്ഞുതിരിയുന്നവ)
Question 5. (2020 Mar - 1 Mark)
Identify the type of retail outlets that sell their goods through mail from the following:
(a) Mail order houses
(b) Departmental stores
(c) Super markets
(d) Multiple shops
Answer: (a) Mail order houses (മെയിൽ ഓർഡർ വീടുകൾ)
Question 6. (2020 Imp - 1 Mark)
I am a retailer selling goods at different places on fixed days. Identify me
a) Market trader
b) Hawker
c) Street trader
d) Cheap Jacks
Answer: a) Market trader (മാർക്കറ്റ് ട്രേഡർ)
Question 7. (2021 Mar - 1 Mark)
This is suitable for selling products which are branded, low priced and uniform in weight and size.
Answer: Multiple shops / Chain stores (ചെയിൻ സ്റ്റോറുകൾ)
Question 8. (2022 Mar - 1 Mark)
This type of retail shop operates on the principle of self service. Identify the type of retail shop referred here.
Answer: Super market (സൂപ്പർ മാർക്കറ്റ്)
Question 9. (2022 Imp - 1 Mark)
Which type of retailers provide door-to-door services to their customers?
(a) Street traders
(b) Peddlers and hawkers
(c) Cheap jacks
(d) Market traders
Answer: (b) Peddlers and hawkers (പെഡ്ലേഴ്സ്, ഹോക്കേഴ്സ്)
Question 10. (2023 Mar - 1 Mark)
The term VPP is associated with _____ business.
(a) Departmental store
(b) Chain store
(c) Super bazaar
(d) Mail order
Answer: (d) Mail order (VPP – Value Payable Post) (മെയിൽ ഓർഡർ)
Question 11. (2023 Imp - 1 Mark)
Supermarkets are also known as:
(a) Chain stores
(b) Self-Service stores
(c) Specialty stores
(d) Single line stores
Answer: (b) Self-Service stores (സെൽഫ് സർവീസ് സ്റ്റോറുകൾ)
Question 12. (2024 Mar - 1 Mark)
Who among the following acts as the link between wholesaler and the ultimate consumers?
(a) Supplier
(b) Manufacturer
(c) Retailer
(d) None of these
Answer: (c) Retailer (റീട്ടെയിലർ)
Question 13. (2025 Mar - 1 Mark)
Those retailers who do not have a fixed place of business are called _____
Answer: Itinerant retailers (അലഞ്ഞുതിരിയുന്ന റീട്ടെയിലർമാർ)
Question 14. (2018 Mar - 2 Marks)
List out any two services rendered by retailers to consumers.
Answer: 1. Regular supply of goods. 2. Credit facility. (ചരക്കുകളുടെ നിരന്തര വിതരണം, വായ്പ സൗകര്യം)
Question 15. (2018 Imp - 2 Marks)
GAMA Traders get the orders through post and they deliver the products through mail. Identify the form of retail outlet mentioned here and also state an advantage of it.
Answer: Mail order houses. Advantage: No need for a physical shop, can reach distant customers. (മെയിൽ ഓർഡർ ഹൗസുകൾ – കടയില്ലാതെ വിൽപ്പന)
Question 16. (2019 Mar - 2 Marks)
Who are cheap jacks?
Answer: Cheap jacks are petty retailers who have independent shops of a temporary nature and change their business from one locality to another. (താൽക്കാലിക കടകൾ സ്ഥാപിച്ച് സ്ഥലം മാറി മാറി കച്ചവടം ചെയ്യുന്നവർ)
Question 17. (2019 Imp - 2 Marks)
"Mail order houses provide a lot of convenience to the customers, yet they are not very popular." Give any two reasons to support this statement.
Answer: 1. No personal contact with customers. 2. Delay in delivery. 3. Risk of fraud. (വ്യക്തിബന്ധമില്ല, വൈകിയ ഡെലിവറി, തട്ടിപ്പ് സാധ്യത)
Question 18. (2020 Mar & 2021 Mar - 2 Marks)
Name any two type of products which are suitable for vending machines.
Answer: Cold drinks, chips, chocolates, coffee. (തണുത്ത പാനീയങ്ങൾ, ചിപ്സ്, ചോക്ലേറ്റ്, കാപ്പി)
Question 19. (2022 Mar - 2 Marks)
Name any four types of itinerant retailers.
Answer: 1. Peddlers, 2. Hawkers, 3. Street traders, 4. Cheap jacks. (പെഡ്ലേഴ്സ്, ഹോക്കേഴ്സ്, സ്ട്രീറ്റ് ട്രേഡേഴ്സ്, ചീപ്പ് ജാക്കുകൾ)
Question 20. (2022 Imp - 2 Marks)
Write the name of retailers mentioned in the following statements:
(a) Traders having no fixed place of business
(b) Traders having a fixed place of business
Answer: (a) Itinerant retailers, (b) Fixed shop retailers. (അലഞ്ഞുതിരിയുന്നവർ, സ്ഥിര കടക്കാർ)
Question 21. (2023 Mar - 2 Marks)
Mention any two kinds of itinerant traders.
Answer: Peddlers, Hawkers. (പെഡ്ലേഴ്സ്, ഹോക്കേഴ്സ്)
Question 22. (2018 Mar - 3 Marks)
A large retailing unit selling a wide variety of consumer goods on low price, and with self service concept. Identify it and mention any two advantages.
Answer: Super market. Advantages: 1. Low price due to bulk purchase. 2. Wide choice under one roof. (സൂപ്പർ മാർക്കറ്റ് – കുറഞ്ഞ വില, വൈവിധ്യം)
Question 23. (2020 Imp - 3 Marks)
Identify the type of retailer in the following cases:
a) Mr.Sunil sells vegetables on his cycle
b) Arun runs a used car showroom
c) Deepa runs a medical shop
Answer: a) Hawker/peddler, b) Specialty shop (used cars), c) Fixed shop (medical store). (a) ഹോക്കർ, b) പ്രത്യേക സ്റ്റോർ, c) സ്ഥിര കട)
Question 24. (2022 Mar - 3 Marks)
Bata Shoe Store is an example of this type of fixed shop large retailers. Identify and explain this type of retailer.
Answer: Multiple shops / Chain stores. Explanation: They have many branches in different locations, selling similar products, with centralized purchasing and standardized prices. (ചെയിൻ സ്റ്റോറുകൾ – വിവിധ ശാഖകൾ, ഏകീകൃത വില)
Chapter 11: International Business
Question 1. (2018 Mar - 1 Mark)
Which one of the following is not an export document?
a) Letter of credit
b) Bill of Lading
c) Bill of entry
d) Certificate of origin
Answer: c) Bill of entry – it is an import document. (ബിൽ ഓഫ് എൻട്രി ഇറക്കുമതി രേഖ)
Question 2. (2018 Imp - 1 Mark)
Identify the first step in the export Procedure.
a) Receipt of enquiry and sending quotations.
b) Obtaining export license
c) Receipt of order or indent
d) Production or Procurement of goods.
Answer: a) Receipt of enquiry and sending quotations. (അന്വേഷണം ലഭിക്കുക, ക്വട്ടേഷൻ അയയ്ക്കുക)
Question 3. (2018 Imp - 1 Mark)
Access international, a computer training institute located in London, allows C-Tech Computer Education of India to use their logo and name for a consideration. This is an example of ....
a) Contract manufacturing
b) Licensing
c) Franchising
d) Joint venture
Answer: c) Franchising (ഫ്രാഞ്ചൈസിംഗ്)
Question 4. (2019 Mar - 1 Mark)
Which among the following is a document relating to the payment in international business?
a) Shipping bill
b) Certificate of origin
c) Letter of credit
d) Export invoice
Answer: c) Letter of credit (ലെറ്റർ ഓഫ് ക്രെഡിറ്റ്)
Question 5. (2019 Imp - 1 Mark)
A receipt issued by the commanding officer of the ship when the cargo is loaded on the ship is known as
(a) shipping bill
(b) mates receipt
(c) cargo receipt
(d) shipping order
Answer: (b) mates receipt (മേറ്റ്സ് റസീറ്റ്)
Question 6. (2020 Mar - 1 Mark)
Which among the following is a mode of entry into international business?
(a) Contract manufacturing
(b) Joint ventures
(c) Wholly owned subsidiaries
(d) All of these
Answer: (d) All of these (ഇവയെല്ലാം)
Question 7. (2021 Imp - 1 Mark)
The document that contains a guarantee from the importer's bank to the exporters bank to honor the payment of bill is
(a) Letter of credit
(b) Bill of lading
(c) Bill of entry
(d) Mates' receipt
Answer: (a) Letter of credit
Question 8. (2022 Mar - 1 Mark)
Name the document which serves as an evidence that the shipping company has accepted the goods for carrying to designated destination.
Answer: Bill of lading (ബിൽ ഓഫ് ലേഡിംഗ്)
Question 9. (2022 Imp - 1 Mark)
Which of the following is a mode of entry into international business?
(a) Export
(b) Import
(c) Contract manufacturing
(d) All of these
Answer: (d) All of these
Question 10. (2023 Mar - 1 Mark)
Buying and selling of goods and service between two countries may be
(a) Domestic trade
(b) Foreign trade
(c) Home trade
(d) Internal trade
Answer: (b) Foreign trade (വിദേശ വ്യാപാരം)
Question 11. (2023 Imp - 1 Mark)
International business involves international movements of:
(a) Capital
(b) Personnel
(c) Technology and Intellectual Property
(d) All of the above
Answer: (d) All of the above (മൂലധനം, വ്യക്തികൾ, സാങ്കേതികവിദ്യ)
Question 12. (2025 Mar - 1 Mark)
The most important document used in import is
(a) Bill of Entry.
(b) Proforma Invoice
(c) Mates Receipt
(d) Airway bill
Answer: (a) Bill of Entry (ബിൽ ഓഫ് എൻട്രി)
Question 13. (2018 Mar & 2019 Imp - 2 Marks)
Differentiate the terms Licensing and Franchising.
| Licensing | Franchising |
|---|---|
| Only technology/patent is given | Complete business model (brand, logo, methods) is given |
| Less control | More control by franchisor |
| Example: Patent license | Example: McDonald's |
Question 14. (2019 Mar - 2 Marks)
What is franchising?
Answer: Franchising is an agreement where a franchisor allows a franchisee to use its brand name, logo, and business model for a fee. (ഫ്രാഞ്ചൈസിംഗ് – ബ്രാൻഡ് നാമവും ബിസിനസ് രീതിയും ഉപയോഗിക്കാൻ അനുവദിക്കുന്ന കരാർ)
Question 15. (2020 Mar - 2 Marks)
Write any two reasons for international business.
Answer: 1. To expand market. 2. To earn foreign exchange. (വിപണി വികസിപ്പിക്കാൻ, വിദേശനാണ്യം നേടാൻ)
Question 16. (2020 Imp - 2 Marks)
Name the following documents:
a) Documents issued by customs house for giving permission to export.
b) The document issued as an evidence that the goods have been accepted by the shipping company for delivery.
Answer: a) Shipping bill, b) Bill of lading. (ഷിപ്പിംഗ് ബിൽ, ബിൽ ഓഫ് ലേഡിംഗ്)
Question 17. (2025 Mar - 2 Marks)
Name the modes of an organisation entering into international business.
Answer: Export/import, licensing, franchising, contract manufacturing, joint venture, wholly owned subsidiary. (കയറ്റുമതി/ഇറക്കുമതി, ലൈസൻസിംഗ്, ഫ്രാഞ്ചൈസിംഗ്, കരാർ നിർമ്മാണം, സംയുക്ത സംരംഭം)
Question 18. (2018 Mar - 3 Marks)
From the items given in brackets choose the suitable mode of entry into international business for the following cases (Joint Venture, contract Manufacturing, Licensing)
a) Agreement with manufacturer of a foreign country to get the products produced
b) A contractual arrangement to access the patent or technology of a firm for producing goods in foreign country
c) Establishing a firm jointly with a foreign partner
Answer: a) Contract manufacturing, b) Licensing, c) Joint venture. (a) കരാർ നിർമ്മാണം, b) ലൈസൻസിംഗ്, c) സംയുക്ത സംരംഭം)
Question 19. (2019 Mar - 3 Marks)
Write any three reasons for international business.
Answer: 1. Availability of resources. 2. To reduce dependence on domestic market. 3. To gain competitive advantage. (വിഭവ ലഭ്യത, ആഭ്യന്തര വിപണിയിലെ ആശ്രിതത്വം കുറയ്ക്കാൻ, മത്സരശേഷി നേടാൻ)
Question 20. (2019 Imp - 3 Marks)
Mr. Hari decided to import some machinery for his proposed garment making unit. As a commerce student prepare a brief report about the steps involved in import procedure for information to Hari.
Answer: Import procedure steps: 1. Trade enquiry, 2. Obtain import license, 3. Place order, 4. Arrange letter of credit, 5. Receive shipping documents, 6. Bill of entry and customs clearance, 7. Take delivery. (ഇറക്കുമതി നടപടികൾ: 1. വ്യാപാര അന്വേഷണം, 2. ഇറക്കുമതി ലൈസൻസ്, 3. ഓർഡർ നൽകുക, 4. എൽസി തുറക്കുക, 5. ഷിപ്പിംഗ് രേഖകൾ സ്വീകരിക്കുക, 6. ബിൽ ഓഫ് എൻട്രി, 7. ചരക്ക് സ്വീകരിക്കുക)
Question 21. (2019 Imp - 3 Marks)
Write a report on contract manufacturing in international business.
Answer: Contract manufacturing is when a company enters into an agreement with a foreign manufacturer to produce goods according to its specifications. The local company then sells those goods under its own brand. Advantages: low cost, access to local market. (കരാർ നിർമ്മാണം – വിദേശ നിർമ്മാതാവുമായി കരാർ ചെയ്ത് ഉത്പന്നം നിർമ്മിപ്പിക്കുക)
Question 22. (2020 Imp - 3 Marks)
What do you mean by Licensing? How it is different from franchising?
Answer: Licensing is giving permission to use intellectual property (patent, trademark) for a fee. Franchising includes the entire business system. Licensing is limited to technology; franchising includes brand, training, support. (ലൈസൻസിംഗ് – ബൗദ്ധിക സ്വത്ത് ഉപയോഗിക്കാനുള്ള അനുമതി; ഫ്രാഞ്ചൈസിംഗ് – പൂർണ ബിസിനസ് സിസ്റ്റം)
Question 23. (2021 Mar - 3 Marks)
Differentiate between licensing and franchising.
Answer: (Same as above).
Question 24. (2021 Imp - 3 Marks)
Write any three differences between International business and Domestic business.
| International Business | Domestic Business |
|---|---|
| Involves multiple currencies | Single currency |
| Different laws and regulations | Same laws |
| Higher risk | Lower risk |
Question 25. (2022 Imp - 3 Marks)
Explain the following:
(a) Mate's receipt
(b) Bill of lading
Answer: (a) Mate's receipt is issued by the ship's officer when goods are loaded on the ship. (b) Bill of lading is a document issued by the shipping company acknowledging receipt of goods and undertaking to deliver them at the destination. (മേറ്റ്സ് റസീറ്റ് – കപ്പലിൽ ചരക്ക് കയറ്റിയതിന്റെ രസീത്; ബിൽ ഓഫ് ലേഡിംഗ് – ഗതാഗത കമ്പനിയുടെ രസീത്)
Question 26. (2023 Mar - 3 Marks)
Write any three procedure for export trade.
Answer: 1. Receipt of order, 2. Obtaining export license, 3. Production of goods, 4. Shipping space booking, 5. Customs clearance, 6. Mate's receipt, 7. Bill of lading. (any three). (കയറ്റുമതി നടപടികളിൽ ഏതെങ്കിലും മൂന്ന്)
Question 27. (2023 Imp - 3 Marks)
State any three benefits of doing international business to countries.
Answer: 1. Earn foreign exchange. 2. Create employment. 3. Access to advanced technology. (വിദേശനാണ്യം, തൊഴിൽ, സാങ്കേതികവിദ്യ)
Question 28. (2025 Mar - 3 Marks)
List out any six steps involved in export procedure.
Answer: 1. Enquiry and quotation, 2. Order, 3. Export license, 4. Production, 5. Shipping space, 6. Customs, 7. Mate's receipt, 8. Bill of lading. (കയറ്റുമതിയിലെ ആറ് ഘട്ടങ്ങൾ)
Note: This covers all chapters with very simple language, bilingual explanations, and exam year brackets. Use Ctrl+F to find specific questions.