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Model Test Paper
Sample Question Paper (2017-18)
Elements of Business Class X

Q.1. Which of the following is not a feature of personal selling:  (1 Mark)
a) develop personal relationship with customer
b) personal form of communication
c) flexible tool of promotion
d) communicated through some media


______ are considered as a cushion of security. (1 Mark)
a) Equity
b) Debentures
c) Retained Earnings
d) Trade Credit


Exchange of information between sender and receiver is known as: (1 Mark)
a) Directing
b) Controlling
c) Organising
d) Communication

Q.4. Centralised control in MNC’s implies control exercised by (1 Mark)
a) Headquarters
b) Government
c) Branches
d) Subsidiaries

Q.5. Document that is sent by the seller to a potential customer offering to sell goods or services at a certain price is known as: (1 Mark)
a) Debit note
b) Credit note
c) Quotation
d) Accounts Payable

Q.6. Debentures are _____ type of capital of a company. (1 Mark)
a) Fluctuating
b) borrowed
d) Fixed

Q.7. Invoice is prepared by _____ in case of sale of goods (1 Mark)
a) Buyer
b) Seller
c) Bank
d) Lender

Q.8. Delhi Cloth Mills (DCM) Store is an example of which of the following: (1 Mark)
a) Mail Order House
b) Multiple Shops
c) Departmental Stores
d) Super Markets

Q.9. The process of communication is incomplete without______. (1 Mark)
a) Rumours
c) Encoding
d) Decoding

Q.10. Which of the following is a type of Non- store retailing (1 Mark)
a) Consumer Cooperative Store
b) Selling through internet
c) Franchisee
d) Chain stores

Q.11. Which of the following is an impersonal form of communication? (1 Mark)
a) Advertising
b) Marketing
c) Personal Selling
d) Promotion

Q.12. Reliance Jio distributed free sim cards for enhancing its customer base. Which promotion technique did the company adopt? (1 Mark)
a) Contests
b) Sampling
c) Lucky draw
d) Rebate

Q.13. _________ is not a feature of a departmental store. (1 Mark)
a) Centralised location
b) Wider Range
c) Central purchases
d) Specialised in one line product

Q.14. ______ is an association of persons formed for carrying out business activities and has a legal status independent of its members is known as: (1 Mark)
a) Joint Hindu Family
b) Partnership
c) Consumer Cooperative society
d) Company

Q.15. Equity shareholders are called (1 Mark)
a) Owners of the company
b) Partners of the company
c) Debtors of the company
d) Creditors of the company

Q.16. Signature of a company is known as : (1 Mark)
a) Trademark of the company
b) Logo of the company
c) common seal
d) signature of the director

Q.17. Equity share capital is a permanent source of finance. Explain (3 Mark)

Q.18. State any three limitations of Mail Order Business. (3 Mark)

Q.19. Briefly explain Radio as a media of advertising. (3 Mark)

Q.20. ‘Multinational Corporation creates employment in the host country’. Do you agree with the given statement? Give valid reasons in support of your answer. (3 Mark)

Q.21. Define Advertising. State any three difference between Advertising and Personal selling. (4 Mark)

Q.22. Explain the preferential rights enjoyed by Preference Shareholders over Equity Shareholders. (4 Mark)

Q.23. Discuss how a buyer can exercise the methods of ‘purchase by sample’ and ‘purchase by inspection’. (4 Mark)

Q.24. Discuss the role of sender and receiver in the communication process under a business organisation. (4 Mark)

Q.25. ‘No business organisation can imagine communication activities without telephone in the modern times’. Elaborate the given statement in the light of the present day communication methodologies. (4 Mark)

Q.26. State the steps involved in selling procedure. (4 Mark)

Q.27. Automatic Vending Machine is a new and innovative way of direct retailing. In the light of given statement state the advantages of Automatic vending machine. (4 Mark)

Q.28. State any four features of a multinational corporation. (4 Mark)

Q.29. Distinguish between public and private company on the basis of the following: (5 Mark)
a) Number of members
b) Prospectus
c) Number of directors
d) Transfer of shares
e) Minimum paid up capital

Q.30. Explain any two sources of owner’s fund that can be used for raising finance by a business organisation. (5 Mark)

Q.31. ‘Video Conferencing has been growing rapidly as a method of communication for the present day business organisations’. Discuss the advantages of the method in the light of the given statement. (5 Mark)

Q.32. Discuss briefly the following : (5 Mark)
a) Debit Note
b) Credit Note

Q.33. Write short notes on :- (5 Mark)
a) Email
b) Letter

Q.34. Explain the following two methods of purchase of goods:- (5 Mark)
a) Instalment Method
b) Hire Purchase Method

Q.35. Give any five point of distinction between Departmental and Chain Stores. (5 Mark)

Q.36. Discuss briefly the following techniques of sales promotion, with suitable examples: (5 Mark)
a) Rebate
b) Discount
c) Refund
d) Contest
e) Lucky Draw

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