video 21 BUSINESS ADMINISTRATION Sample Question Paper for Class 11 2025-26 question 2
Question:
Identify the related feature of a company, "its Assets and liabilities are separate from those of its owners."
(a) Artificial person
(b) Perpetual succession
(c) Common seal
(d) Separate legal entity
**Explanations:**
- **Artificial person**: Incorrect. This means the company is treated like a person in law, but it doesn’t directly explain separation of assets.
- **Perpetual succession**: Incorrect. This refers to the company continuing even if members change or die.
- **Common seal**: Incorrect. This is the official stamp of the company, not related to ownership of assets.
- **Separate legal entity**: Correct. A company’s assets and liabilities are distinct from those of its owners.
**Right Answer:** d) Separate legal entity
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**Question:**
What happens if a minor is admitted to the benefits of a partnership?
(a) His share in the property and profits of the firm shall be the share to which he was entitled as a minor.
(b) His rights and liabilities as a minor continue up to the date on which he becomes a partner.
(c) He also becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership.
(d) All of the above.
**Explanations:**
- **Share in property and profits**: Correct. A minor can enjoy benefits but not take full responsibility.
- **Rights and liabilities continue**: Correct. His rights as a minor remain until he decides to become a full partner.
- **Personally liable**: Incorrect. A minor is not personally liable to third parties.
- **All of the above**: Incorrect, because option (c) is wrong.
**Right Answer:** a) His share in the property and profits of the firm shall be the share to which he was entitled as a minor
**Question:**
What is the primary objective of a business?
a) Providing employment
b) Earning profit
c) Social service
d) Environmental sustainability
**Explanations:**
- **Providing employment**: Incorrect. Employment is a by-product, not the main goal.
- **Earning profit**: Correct. Profit is the main objective of any business.
- **Social service**: Incorrect. Businesses may contribute socially, but it’s not the primary aim.
- **Environmental sustainability**: Incorrect. Important, but secondary to profit-making.
**Right Answer:** b) Earning profit
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**Question:**
Corporate Social Responsibility (CSR) refers to:
a) Focusing solely on maximizing profits
b) Contributing positively to society through ethical business practices
c) Ignoring environmental impact
d) Maximizing shareholder value at all costs
**Explanations:**
- **Maximizing profits**: Incorrect. CSR is not only about profits.
- **Contributing positively**: Correct. CSR means businesses act ethically and help society.
- **Ignoring environment**: Incorrect. CSR emphasizes environmental responsibility.
- **Maximizing shareholder value**: Incorrect. CSR balances profits with social good.
**Right Answer:** b) Contributing positively to society through ethical business practices
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**Question:**
Registration is compulsory in this form of business.
(a) Partnership and Joint Hindu Family
(b) Cooperative societies and Joint stock company
(c) Joint Hindu Family and Sole Proprietorship
(d) Partnership and Joint stock company
**Explanations:**
- **Partnership and Joint Hindu Family**: Incorrect. Partnership registration is optional, and Joint Hindu Family doesn’t require registration.
- **Cooperative societies and Joint stock company**: Correct. Both require compulsory registration under law.
- **Joint Hindu Family and Sole Proprietorship**: Incorrect. Neither requires compulsory registration.
- **Partnership and Joint stock company**: Incorrect. Partnership registration is not compulsory.
**Right Answer:** b) Cooperative societies and Joint stock company
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**Question:**
Which of the following is NOT a support service activity for trade?
a) Banking
b) Warehousing
c) Insurance
d) Mining
**Explanations:**
- **Banking**: Correct support service, helps trade with finance.
- **Warehousing**: Correct support service, helps store goods.
- **Insurance**: Correct support service, protects against risks.
- **Mining**: Incorrect as a support service. Mining is a production activity, not a trade support.
**Right Answer:** d) Mining
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**Question:**
A written agreement among partners in a partnership is called:
(a) Partnership contract
(b) Partnership deed
(c) Agreement
(d) Partnership Act
**Explanations:**
- **Partnership contract**: Incorrect. Not the formal legal term.
- **Partnership deed**: Correct. The written agreement is legally called a partnership deed.
- **Agreement**: Too general, not specific to partnership.
- **Partnership Act**: Incorrect. This is the law governing partnerships, not the agreement itself.
**Right Answer:** b) Partnership deed
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