BUSINESS STUDIES CLASS XI - VALUE BASED QUESTIONS

VALUE BASED QUESTIONS

CH 1  Nature and purpose of business (Group V)

Q1. Which value is promoted by protecting business from natural risk?

Q2. Which value is promoted by protecting business from theft  risk?

Q3. Which value is promoted by taking insurance policy?

Q4. Which value is promoted by ensuring regular supply of goods to the ultimate consumers?

Q5. Which value is promoted by removing hindrance of place in the business?

Q6. Which value is promoted by encouraging primary industry?

Q7. Which value is promoted by banking service used in day-to day business activities?

Q8. Which value is promoted by good advertising of a product?

Q9. Which value is promoted by establishing warehouses for perishable goods ?

Q10. Which value is promoted by retailing business in the interest of consumers?

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Ch 2 : FORMS OF BUSINESS ORGANISATION

Q1.What values are generally upheld cooperative society?

Ans:Mutual help, social welfare.

Q2.   The management of a Company has decided to set up a new plant in a rural area to provide employment to the local people and to contribute to the development of that area. How will you justify the management decision?

Ans: social development, Help to people by providing employment.

Q3..   Anu and Arun are two partners in a firm trading in toys. They procure all their supplies from Dungarpur, a  village in Rajasthan. Arun suggested that they should tell their customers that they buy the toys from a big industrialist in Mumbai as it would improve their market share. But, Anu does not agree to this.

    Which values would be ignored if Arun’s suggestion is accepted?

Ans: Balance regional development, Concern

Q4.  Mr. Majumdar is one of the promoters of Zodiac Pharma Ltd. The company has been incorporated, and now, steps are being taken to invite subscription to its shares from the public. Mr.Majumdar insisted that they provide true and fair information in the document that they prepare for the purpose.What values are behind such a decision of Mr. Majumdar?

Ans: Honesty, social responsiblity

Q5.A business organization is governed by Hindu Succession Act, 1926. It recently rewarded two of its employees, Joseph and Kiran, who had reached the office on time on all working days in the  months of June and July.Which values are being inculcated by the organization among its employees?

Ans: Respect for dedication and loyalty toward work.

Q6.   Richa Enterprise Ltd. Is the producer of ‘Tasty Pan Masala’.  In order to promote the sale of its product, the company is using the slogan ‘Come Alive with Tasty Pan Masala’ and its advertisements are not showing the statutory warning “Tobacco chewing is injurious to health.”What values are being violated by Richa Enterprise?

Ans: Honesty, social and legal responsibility.

Q7.A Company is manufacturing synthetic shampoo but is packaging and marketing it as a herbal shampoo. The ingredients of the shampoo are not mentioned on its package put for sale. How do you view this practice?

Ans: It is unethical. Company is cheating its customers which are a criminal offence punishable by law.

Q8. A, B and C are partners in a firm. C uses firm’s money to buy shares without disclosing it other partners. Which value is C violating?

Ans: Honesty, Integrity, Truth and Breach of mutual trust.

Q9.What is the values involved in the formation of a partnership firm?

Ans: Unity, Pooling of Resources, Efficient use of resources.

Q10. What are the values disclosed by a Partnership Deed?

Ans: Transparency, Evidence, Awareness    

CH 3     PUBLIC PRIVATE AND GLOBAL ENTERPRISES

Q. 1 In spite of a dominant role the public sector could not do much for

        economic development of our country. Then also why is government

        of India not closing all Public sector  Enterprises? Which value is

        reflect here.                                                                                    3

Ans. Value of social responsibility or objectives are affected because

         Private sector interprises work with the main objective of earning

         profit.

Q.2 In  ‘Global world ‘ an multinational company thousands no. of workers 

       engaged in manufacturing unit ,but co. provided them less salary and not

       fair working conditions. Which value is reflect here .                     3

Ans. Here value of social responcibility, fair remuneration & good working

         conditions are violated by   ‘Global world ‘.

Q.3 Coca-cola a MNC produces soft drinks. If there is many complains about

       adulteration in its product.    Which value is violated here .                    3

Ans. The value social responsibility, good quality product is violated here.

Q4 A Multinational Company having head office in Shri Lanka having a branch in India. But The company is selling their product at very very higher price than actually he should charge.

Which values has been affected by their this act?

Ans:- Here, fareness and earning of middle class people has been violated here.

Q5. Which values should always be followed by the MNCs since they are operating in many countries?

Answer:- Values they must value are:- Respect towards the custome of the country, To follow the rules and regulation to be made by the concern government regarding Trade and Services.

Q6. ABC a multinational company who produce alchohalic product and sale them in many countries. What values they are violating by their act.

Ans. Since we know profit can not always be the sole objective of the business, and here the company is just playing a negative role against the society.

Q7. Which value normally degraded by the entrance of coming MNCs?

Answer:- Social integrity, Social Custome Welfare, Cultural development, Home Made Industry.

Q8. Which value normally inculcated by the entrance of MNCs,?

Answer:- Values of Healthy Competition among concern Companies, Optimum Utilization of Resources and Employment Opportunities Development and Increase in Social Living Standard.

Q9. Even though the government companies are incorporated by Government concerned either state or central, they used to charge always higher prices of their product to the consumer. Here which value has been affected by the act of Government Company.

Answer:- Values of Equity, Social Welfare, Faith in the Government.

Q10. As we know departmental under taking is working under specific department of India. Like Department of Post. Normally we used to see that the letters are delivered too late. Sometime after 10 to 20 days. Due to this many important work is not completed. Many unemployed people get their admit card for the examination after the date of examination is over.

Which values is being affected here?

Answer:- Here , the value of Punctuality has been affected here.

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Ch 4               BUSINESS SERVICE

Q. 1 If a factory owner takes a fire insurance policy hinding the fact that.The electricity board has issued him a statutory warning letter to get  his factory wiring changed and later on if the factory catches fire due  to short circuit of wiring.Is insurance co. accept his claim? Which value is  affect  here.                                                                   3

   Ans. Value of Principle of utmost good faith is affected here. Ins. Co. refuce to pay the compensation .

   Q. 2 Akash insured his factory for Rs. 2 lakhs against fire. Due to fire he  suffered a loss of Rs. 1 lakh, he claim to ins. Co. for full compensation.  How much compensation will pay co. and Which value is  affect  here.                 3

  Ans. Ins. Co. will compensate him Rs. 1 lakh only and not the policy am. That is 2 lahks, because the purpose of ins. Is to compensate for loss and not for  earning profit. Here value of Principle of indemnity is affected.

  Q. 3 Prabhat has taken fire ins. Policy for his factory, due to fire he suffered a loss of Rs.100000 and he gets the compensation for the same.Later on who acquires the value received from sale of burnt goods and which value is  affect  here.   3

Ans. Value of Principle of subrogation is affected here and the value of  burnt goods will be kept by ins. Co.

Q.4 Ajay has done a life insurance policy with LIC but he did not disclosed that he is suffering from T.B. Here, which values has been affected by the act of Ajay? And what can be the consequences at the time of claiming policy assured money when he dies soon?

Ans. Here, Honesty value has been affected.

It is also breaching the principal of Insurance i.e. Utmost Good faith. In such circumstances if it comes to know to the LIC after mediacl examination that he was suffering from T.B., His policy will be forfeited and no claim to be made by the LIC.

Q5. Mr. Sunder Tiwari took a Fire Insurance policy for his cloth shop. After two years he was suffering from big financial crisis. He , then, burnt his shop by himself and then claim for the policy from the insurance company.

Which values has been affected here and also name the principal violated here relating to Insurance?

Answer:- Here value of Honesty and social safety has been affected by his act. Here principal of Insurable interest has not been obeyed.

Q.6 Mr S. Parmar is working at Jabalpur but his family is at Delhi.Once he decided to send a letter to his family. After completing the letter he searched Postage Stamp to be used on envelop but he did not found. But fortunately he found an old postcard where Postage stamp was without any govt. Seal. He decided to take this stamp and pasted on his envelop to save his money. Which value has been affected by the act of Mr. Parmar?

Ans. The value of Patriotism and social values toward government has been affected here.

Q7. Miss Shailini , a housewife wish to open a bank account. She went to SBI and opened a bank account but in KYC form she did not mentioned her PAN card number since she fears to add it. By her act which value being affected here?

Ans. The value of Honesty and National Security has been affected in her act.

Q8. Mrs. Dhaniya,is going to buy a piece of land but she does not have sufficient money. Hence she consult with her husband and both decided that they will take a loan from Bank of India. The bank asks to submit her Income tax return file of the cuurent year. She took help from a tax consultant and made a strong financially sound income tax return file on false data and submitted the same into the bank.

By her act which value has been affected ?

Ans. The value of Transparency and Government guideline intervention has been affected here.

Q9.Ravi, who have passed out from Nashik University in the year 2014 wish to open a Student saving account in bank of India, for this he has submitted Photocopy of His Old Identity card to the Bank to take advantages of Student Saving Account .

With this act which values has been affected here with his act?

Answer:- the value of Honesty as well as he is disobeying the bank’s code of conduct of bank regarding KYC.

Q10. Mr.l Zena is wishing to send his goods by a Truck. The transporter enquired that whether the goods to be sent is perishable in nature or not but since perishable goods needs more transportation cost due to safety factor , Mr. Zena hide this fact from the transporter.

Unfortunately he is not following some values, Name them.

Answer:- With the act of Mr. Zena , The value of Mutal Trust and honesty and also he is not following the Loyalty.

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CH 5                  Emerging modes of Business

1.     A software company share the data of their client in an unauthorized way with others in consideration of money. Which values are being violated here?

Ans:-ethical, confidentiality, honesty

2.     The management of X Ltd outsourced its services from foreign country as it will be cheaper than the service available in the country. Which values are being violated here?

Ans:-social values

3.     A software engineer hadhaked  the site of a school and using the information in a wrong way. What values are being violated here?

Ans:-ethical, cyber crime

4.     Some of the younger school children are making false ID in social media for fun. What values are being violated here?

Ans:- negligence, cyber crime, dishonesty

5.     A co. is outsourcing work to provide employment to the local people what values they are showing?

Ans:-honesty patriotism

6.     A co.is using child labour to reduce the cost of production which values are being violated here?

Ans:-legal , humanities

7.     A businessman is selling duplicate product to online at a very cheap rate justifying himself as to low priced comment.

Ans:- it is unethical and illegal

8.     An Indian businessman buying Chinese toy although it is banned by the government. What values are being violated?

Ans:- patriotism , illegal ,

9.     An outsourcing co. pays less remuneration to women workers as compared to men workers. What values are being violated?

Ans:-equality, against the constitution

10.                        A software co. is trying to prepare such a software which can read the password of any ATM to cheat the public. What values are being violated?

Ans:- unethical , illegal , cyber crime

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Ch 6 : SOCIAL RESPONSIBILITY OF BUSINESS

Q1.   A Readymade Garment manufacturer distributes its defective product at free of cost (after getting them repaired from Mahila Griha Udyog at lower cost) to orphanage named Snehalaya. Which values are being taken care of?

Ans: Employment to women, social responsibility towards weaker section of the society.

Q2.   A manufacturer of Air Conditioner has used new technology in place of using harmful gases, which do not cause air pollution. Which value being followed here?

Ans: Responsibility towards Environment

Q3.   A famous doctor charges high fee for consultation from his patients and refuses to treat the poor patients without consultation charges. He also pays attention to the medical representatives and agents of Pharma co. he takes gifts and commission also. In your view, is it professional behavior of doctor? Does he follow the code of conduct of doctor?

Ans:No he is violating ethical values

Q4..   The management of a Company has decided to set up a new plant in a rural area to provide employment to the local people and to contribute to the development of that area. From the commercial point of view the consultants have advised against the setting of plant in the rural area. How will you justify the management decision?

Ans: Employment opportunity and Development of rural areas

Q5..   An entrepreneur wants to start his business in backward area because government gives many incentives & rebates in taxes. Which results in low cost and he will be able to sell the product at low prices. There he will be able to get large area by deforestation. Which values is being affected here?

Ans: For his personal benefits he is violating his responsibility towards environment.

Q6.  A firm has taken the decision to employ more male employees than female employees because they can work overtime in case of excess work. Which value is being affected here?

ANS: Equality between male and female is being affected due to sex discrimination.

Q7.   An entrepreneur is supposed to be socially responsible by fulfilling his responsibilities towards investors, consumers, employees, society and the government. But he tells his employees to concentrate on maximization of profits and forget about social responsibilities. As a result, the customers are getting exploited, environment is being degraded and the government is being cheated by under-assessing excise duty, VAT and income tax by falsifying sales records. Do you justify such behavior of the entrepreneur? Give reasons for your answer.

Ans: No, for his personal benefits he is violating his responsibility towards customers, environment and government

Q8.   Richa Enterprise Ltd. Is the producer of ‘Tasty Pan Masala’?  In order to promote the sale of its product, the company is using the slogan ‘Come Alive with Tasty Pan Masala’ and its advertisements are not showing the statutory warning “Tobacco chewing is injurious to health.”What values are being violated by Richa Enterprise?

Ans: responsibility towards customer and government.The company is overlooking social values to promote the tobacco-based product.

Q9.    An organization proposes the use of CFL’s and LED’s which consumes less electricity than normal bulbs for its lighting arrangements. Which value is attained by the organization?

Ans: Environment protection by saving energy

Q10.A factory emits a lot of smoke and pollutants while manufacturing plastic toys. It is overlooking the impact of its activities on the environment and engaged in profit maximization. What valueis being overlooked by the factory owner?

Ans:(i) Ethical and social value by neglecting the impact of smoke and pollutants emitted by the factory.

(i) He is not concerned with the betterment of the society.

Ch 7   SOURCES OF BUSINESS FINANCE (Group 5)

Q1. Which value is promoted by purchasing debentures from the point of view of investor?

Q2. Which value is promoted by issuing secured debentures?

Q3. Which value is promoted by becoming equity shareholder of a company?

Q4. Which value is discouraged by retained earnings?

Q5. Which value is discourged by selling debenture at high rate of interest?

Q6. Which value is promoted by setting up of financial institutions?

Q7. Which value is promoted by introducing IDRs in India?

Q8. Which value is promoted by issuing cumulative preference shares?

Q9. Why people hesitate to invest in public deposits?

Q10. Best use of finance encourages which moral value?

Ch 8  Small Business

1.     An entrepreneur wants to start his business in backward area. Which values are being shown here?

Ans: The values shown here are(i) social awareness (ii) service towards backward people (iii) helping govt. in employment generation.

2.     A firm has taken the decision to employ more male employees than female employees because they can work overtime in case of excess work. Which values are being affected here? 

Ans: It is violating the principle of equality and also promoting social evil.

3.     The management of a company has decided to set up its new plant in a rural area to provide employment to local people there and also contribute to the development of that area. From commercial point of view, the consultants have advised against the setting of this plant in the rural area. How would you justify management decision?

Ans: the decision of management is correct surely it will face some problem but it will help in the balanced regional development of the country.

4.     A company has set up a small  factory to manufacture items like bangles and glass wares in a backward area. To achieve economy in labour cost, it is also employing child labour. Highlight the social values being violated in this case.

Ans: It is against law to employ child labour

5.     The management of a Company has decided to set up an ancillary unit in hilly area to produce spare parts of its main plant. What values are shown here.

 Ans:  Employment generation in hilly area, balanced development.

6.     Management of a firm is passing on local goods as branded goods to customers to maximize its profits.  Comment on this conduct.

Ans: They are violating social ethics.

7.  In our country Holi, Diwali, Eid, Christmas, etc., are considered auspicious and celebrated by all sections of the society. On such occasions, markets offer a wide variety of garments, gift items, sweets and other eatables.

(i)        What values the festivals represent for the people?

(ii)           Why are business firms concerned about such values?

Ans: (i) Such festivals represent joy , happiness, equality and integrity.

(ii) Because these are concerned with religious faith and beliefs of the society.

Ch 9    INTERNAL TRADE

Q1.Which values are promoted by consumer cooperative societies?

Ans. Teamwork, sharing

Q2.Which value is promoted by chain stores?

Ans. Equality, responsibility of charging uniform price for same products.

Q3.   A manufacturer of children toys paints them with colours containing ‘lead’ which might result in harming the health of children who put these toys in their mouth. How would you react in this case?

Ans. Raising a strong protest against the manufacturer for manufacturing hazardous toys & thus playing with the health of the generations to come.

Q4.   A firm has taken the decision to employ more male employees than female employees because they can work overtime in case of excess work. Which values are being affected here?

Ans. Values of equal opportunity to work for all.

Q9.  A readymade garment manufacturer distributes its defective product at free of cost (after getting them repaired from Mahila Griha Udyog at lower cost) to orphanage named Snehalaya. Which values are being taken care of?

Ans. Social responsibility towards deprived section of the society. Women empowerment

Q10.   In our country, Holi, Diwali, Eid, Christmas, etc., are considered auspicious and celebrated by all sections of the society. On such occasions, markets offer a wide variety of garments, gift items, sweets and other eatables. What values the festivals represent for the people?

Ans. Value of national integration and harmony.

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Ch 10  INTERNATIONAL TRADE

Q1. Which values are promoted by internationalization of the business?

Ans. Universal brotherhood, employment generation.

Q2. Which value is promoted by WTO?

Ans. Equal opportunity of trading for all member nations. Development of all countries.

Q3. An exporter under-invoices exports goods to a foreign country and deposit the money so received from the importer in a foreign bank without the permission of the appropriate government authorities. Later he brings that amount as foreign debt to avoid income tax. Is it justified?

Ans. No. Lack of integrity towards the nation & violation of rules.

Q4.   A firm manufactures and sells spices for use in preparation of Indian dishes and claims that they are pure. But on getting a few samples examined from a laboratory, a customer found that the spices are actually adulterated. What values are being violated by the manufacturer?

Ans. Cheating & playing with the health of the customers. Ignoring social responsibility towards customers

Q 5 One of the characteristics of international trade is that it is based on territorial specialization. Identify the value in this feature.

ANS.  Treating the world as a family

Q 6“In international trade, mutually acceptable currency is used”. Identify the value in this feature.

Ans.Value of trust

Q7 One of the characteristics of international trade is that large number of middlemen is involved in it. Identify the value in this feature.

Ans. Social service . creation of employment

Q8 .” International laws are involved in international trade”. Identify the value in this feature.

Ans . safety of countries , guidelines

Q9. In international trade, payment through letter of credit is very popular in case of importer and exporter being new to each other while documentary bills of exchange is very popular in case of  the importer and exporter being known to each other. Identify the value involved in these practices and their effect.

Ans Value of trust

Q10. What types of values are likely to be disturbed by international trade because of the reason that international trade has adverse effect on weak economies?

Ans Value of fair play , trade on fair terms between countries

Q 11  WTO has the objective of handling international trade disputes and providing technical assistance and training. Identify the values involved in it and their effect.

Ans Reconciliation of differences. Understanding each other’s views.

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