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Class 10 Element of Business Sample Paper 2023
CBSE Class 10 Element of Business Sample Paper 2023 is now available on cbseacademic.nic.in. Along with CBSE Class 10 Element of Business Sample Paper 2023, CBSE also releases the Marking Scheme of CBSE Class 10 Element of Business Sample Paper 2023. So that students can get a clear idea of the board exam format, question kinds, answer options, and other features with the help of CBSE Class 10 Element of Business Sample Paper 2023.
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CBSE Class 10 Element of Business Sample Paper 2023
The class 10 Element of a Business is going to take place on The CBSE Class 10 Element of a Business sample paper contains a total of 30 questions.
General Instructions:
1. This question paper contains 30 questions. All questions are compulsory.
2. Q.1 to 18 carries 1 mark each
3. Q.19 to 22 carries 3 marks each
4. Q.23 to 26 carries 4 marks each
5. Q.27 to 30 carries 6 marks each
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Element of Business Sample Paper 2023 with Solutions
Q.1 ABC limited. is an association of person formed for carrying out business activities and has
a legal status independent of its members. Identify which type of company ABC limited is
related to.
(a) Joint stock company (b) Public company (c) Private company (d) Cooperative Society
Answer: (a) Joint stock company.
Q.2 XYZ limited decided to use owner’s funds for fulling their capital requirement. Which of
the sources of finance can this company use?
(a) Debentures (b) Bank loan (c) Equity Shares (d) Trade Credit
Answer: (c) Equity Shares
Q.3 Shyam limited has a minimum of 7 members and no limit on maximum members. Which type of Company is this?
(a) Joint stock company (b) Public company (c) Private company (d) Cooperative Society
Answer: (b) Public Company
Q.4 Priya has a network of retail shops that are owned and operated by manufactures or intermediaries. Which type of store is being reflected in this above case.
(a) Departmental stores (b) Mail order houses (c) Chain store or multiple shops. (d) Automatic Vending Machines
Answer: (c) Chain store or multiple shops
Q.5 APNA BANK has recently launched some machines that provides the customers of banks the facility of accessing their accounts with a magnetically encoded plastic card and a code number.
(a) Automated telling machines. (b) Cheque (c) Demand deposits (d) Fixed deposits
Answer: (a) Automated telling machines.
Q.6 Hexa limited is a reputed store which is divided into a number of departments and each department deals in a particular variety of goods. Which type of store is reflected in this above case.
(a) Departmental stores (b) Mail order houses (c) Chain store or multiple shops. (d) Automatic Vending Machines
Answer: (a) Departmental Store
Q.7 XYZ limited is a business that is conducting transaction through postal communication without any personal contact with the buyers. Which form of retailing is reflected in this above case.
(a) Departmental stores (b) Mail order houses (c) Chain store or multiple shops. (d) Automatic Vending Machines
Answer: (b) Mail order houses.
Q.8 The full form of email is ________.
(a) electronic mail (b) extra mail (c) extension mail (d) electric mail
Answer: (a) electronic mail
Or
Invoice is prepared by ______ in case of role of goods.
(a)Buyer (b) Seller (c) Owner (d) Borrower
Answer: (b) seller.
Q.9 Haldiram is an example of:
(a) Mail order house (b) General store (c) Multiple shop (d) Junk order shop
Answer: (c) Multiple shop
OR
A departmental store
(a) is a small establishment (b) is located in local market (c) sells only one kind of product (d) is generally formed as a joint stock company
Answer: (d) is generally formed as a joint stock company
Q.10 ________ is essentially a contract for hiring of goods.
(a) Hire Purchase System (b) Installment payment system. (c) Mail Order Houses (d) Cash based system
Answer: (a) Hire purchase system
OR
When goods are sold and payment is agreed to be made in installments it is known as __________.
(a) Hire Purchase System (b) Installment payment system. (c) Mail Order Houses (d) Cash based system
Answer: (b) Installment payment system.
Q.11 ________ is considered as cushion of security.
(a) Debentures (b) Equity (c) Retained earnings (d) Trade credit
Answer: (c) Retained earnings
OR
Debentures are _____ type capital of a company.
(a) Owned (b) Borrowed (c) Private (d) Public
Answer: (a) Borrowed
Q.12 __________ is not a feature of departmental store.
(a) centraliesed location (b) wider range (c) Central purchase (d) specializes in one line of product.
Answer: (d) specializes in one line of product
OR
Airtel limited distributed free sim cards for enhancing its customer base. Which promotion technique did company adopt?
(a) Contest (b) Sampling (c) Lucky draw (d) Rebate
Answer; (b) Sampling
Q.13 _____ is a method of communication used for sending messages with the help of computer networks.
(a) Letter (b) Email (c) Video Conferencing (d) Telephone
Answer: (b) Email
OR
________ is a written message form one part to another communicating professional/ official matter and providers a means of self-expression to a reader.
(a) Letter (b) Email (c) Video Conferencing (d) Telephone
Answer: (a) Letter
Q.14 Mail order houses are suitable for:
(a) Books (b) Fruits (c) Heavy Goods (d) Refrigerator or Television
Answer: (a) Books
OR
Departmental stores are located in
(a) Union Territories and special economic zones (b) Residential areas (c) Central market (d) Metropolitan Cities
Answer: (c) Central market
Q.15 Dominos is an example of:
(a) mail order house (b) General Store (c) Multiple shop (d) Junk Dealer Shop
Answer: (c) Multiple shop
OR
Vending machines are suitable for:
(a) Pre packed brands of low priced products
(b) Fruits free packed brands of high priced product.
(c) Heavy Goods
(d) Refrigerators and Televisions
Answer: (a) Pre packed brands of low priced products
Q.16 Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion(A): Equity shares is the most important source of raising long term capital by a company
Reason(R): Equity shares represent the ownership of a company and thus the capital raised by issue of such shares is known as borrowed funds.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
Answer: (c) Assertion (A) is true, but Reason (R) is false
Q.17 Read the following statements: Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion(A): Chain stores has a number of departments, each one confining its activities to one kind of product.
Reason(R): A departmental store is a large establishment offering a wide variety of products,
classified into well-defined departments, aimed at satisfying practically every customer’s need under one roof.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
Answer: (d) Assertion (A) is false, but Reason (R) is true
Q.18 In _______ for obtaining orders, potential customers are approached through advertisements in newspapers or magazines, circulars, catalogues, samples and bills, and price lists sent to them by post.
(a) Mail order house (b) General Store (c) Multiple shop (d) Junk Dealer Shop
Answer: (a) Mail order house
OR
The process of converting the message into communication symbols is known as:
(a) Decoding (b) Encoding (c) Media (d) Feedback
Answer: (b) Encoding
Q.19 What is advertising? Discussing any two features of advertising.
Answer; Advertising refers to any paid form of non- personal presentation and promotion of goods and services by an identified sponsor
(a) IDENTIFIED SPONSOR:
1. Advertising is undertaken by some identified individual or company, who makes
the advertising efforts and also bears the cost of it.
2. It means that it is not a secret.
(b) IMPERSONALITY:
1. It is a impersonal method as there is no direct face-to-face contact between the prospect (customer) and the advertiser.
2. Advertising creates a monologue and not a dialogue.
OR
What is sales promotion? Discuss any two of its techniques.
Sales promotion refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase of a product or service.
(a) Rebate (In Rupees): Offering products at special prices, to clear off excess inventory. Example, a car manufacturer’s offer to sell a particular brand of car at a discount of Rs 10,000,
for a limited period.
(b) Discount (In Percentage): Offering products at less than list price. Example, a shoe company’s offer of ‘Discount Up to 50%’ or a shirt marketer’s offer of ‘50+40% Discount’
Q.20 Read the following case and answer the given question:
Rama wants to starts a company and asks her friend priya to explain the difference between a public and private company. Discuss any 3 differences between public and private company which Rama should keep in her mind while deciding for the same.
| Basis of Difference |
Public Company |
Private Company |
| Number of members |
Has a minimum of 7 members and no limit on maximum members |
Has a minimum of 2 and a maximum of 200 members, excluding the present and past employees. |
| Restriction on transfer of securities |
Has no restriction on transfer of securities |
Restricts the right of members to transfer its shares |
| Inviting public |
Is not prohibited from inviting the public to subscribe to its securities |
Does not invite public to subscribe to its securities |
Q.21 Deepika makeovers is a newly started venture which decided to focus on the form of conversation with one or more prospective customers for the purpose of making sales.
Identify the type of technique in which Deepika Makeovers is engaged. Also discuss any two features of it.
Answer: Personal selling involves oral presentation of message in the form of conversation
With one or more prospective customers for the purpose of making sales.
1. Personal form: In personal selling a direct face-to-face dialogue takes place that involves an interactive relationship between the seller and the buyer.
2. Development of relationship: Personal selling allows a salesperson to develop personal relationships with the prospective customers, which may become important in making sale.
Q.22 John limited decided to have a new feedback system for their pizzas, they decided that they would send an email regarding the order of customers where they would ask about the taste of their products and any constructive suggestions if they would like to suggest. Discuss any three advantages of selecting this method.
Answer:
1. It is a fast method of communication
2. It is an inexpensive method of communication
3. As compared to tradition sources of communication there is a little chance of loss in transmission.
Q.23 The management of Sedan Limited has decided to raise capital through equity shares as it would help to serves as a permanent capital as it is to be repaid only at the time of liquidation of a company. But on the other hand, Mr. Ram, one of the director of the company was against it. Discuss any four reasons why Mr. Ram is not ready to prefer for equity Shares.
Answer: The major limitations of raising funds through issue of equity shares are as follow:
1. Investors who want steady income may not prefer equity shares as equity shares get fluctuating returns.
2. The cost of equity shares is generally more as compared to the cost of raising funds through other sources
3. Issue of additional equity shares dilutes the voting power, and earnings of existing equity shareholders.
4. More formalities and procedural delays are involved while raising funds through issue of equity shares.
Q.24 Discuss any four advantages of communication through telephone.
Answer: (a) Save time
(b) Save cost
(c) efforts minimization
(d) rapid connect
OR
Discuss any four features of equity shares
Answer: (a) Equity shares capital sever permanent capital as it is to be rapid only at the time
of liquidation
(b) Payment of dividend is not compulsory
(c) Funds can be raised through equity’s shares without crating charge on the assets of company.
(d) It provides credit worthiness to the company.
Q.25 Mr. Deepak, director of Winzi Limited. was living in South Africa and wanted to crack a deal with Willson Limited i.e a company based in America. Due to unavailability of flights he decided to communicate through internet which will help to stimulate face to face interaction with the directors of Willson Limited. Identify the method of communication and state any three advantages of the method identified above.
Answer: (a) Video Conferencing
(b) Saves money
(c) Improves Communication
(d) Saves time
Q.26 Write a short note on
(a) Written communication (b) Oral Communication
Answer: (a) Oral/Verbal communication: Communication with the help of words is known as oral/verbal communication. It may be in the form of lectures, meetings, group discussions, conferences, telephonic conversations, radio messages, etc,
(b) Written communication: In written communication message is transmitted through written words in the form of letters, memos, circulars, notices, reports, manuals, handbooks, etc.
OR
Write a short note on
(a) Hire purchase system (b) Installment payment system.
Answer: (a) Hire purchase system : The hire purchase system is essentially a contract for hiring of goods. The ownership rights remain with the seller and the customer exercises his option for
purchasing the goods. The buyer can return the goods at any stage. The seller can also take back the goods in case of non-payment.
(b) When goods are sold and payment is agreed to be made in instalments, it is known as instalment payment system. In this case if there is default in payment of any instalment by the buyer, the seller cannot ask for the goods to be returned as the ownership rights pass to be buyer when goods are sold and initial payment is made. The seller can only sue the buyer in a law court for payment of the balance due
Q.27 Identify different type of sales promotion techniques.
(a) ‘20% extra free with a packet of chips
(b) Pack of ½ kg of rice with the purchase of a bag of Aata
(c) A headphone company offers a discount of Rs. 1000 to clear off excess inventory.
(d) ‘Scratch a card’ to win a refrigerator
(e) Purchase goods worth Rs. 2000 and get extra goodies worth Rs. 500
(f) Surf excel offers a free sample of detergent on bunch of its new variant.
Answer: (a) Quantity Gift
(b) Product combination
(c) Rebate
(d) Instant draws
(e) Visible benefit
(f) Sampling
Q.28 Explain any three importance of personal selling to a business organization.
Answer: The importance of personal selling to a business organization may be described as
follows:
1. Effective Promotional Tool: Personal selling is very effective promotional tool, which helps in influencing the prospects about the merits of a product and thereby increasing its sale.
2. Flexible Tool: Personal selling is more flexible than other tools of promotion such as advertising and sales promotion. It helps business persons in adopting their offer in varying purchase situations.
3. Minimizes Wastage of Efforts: Compared with other tools of promotion, the possibility of wastage of efforts in personal selling is minimum. This helps the business persons in bringing economy in their efforts.
OR
Explain the importance of advertising.
Answer: 1. Mass Reach: Advertising is a medium through which a large number of people
can be reached over a vast geographical area. For example, an advertisement message placed in a national daily reaches lakhs of its subscribers.
2. Enhancing Customer Satisfaction and Confidence: Advertising creates confidence amongst prospective buyers as they feel more comfortable and assured about the product quality and hence feel more satisfied.
3. Expressiveness: With the developments in art, computer designs, and graphics, advertising has developed into one of the most forceful medium of communication. With the special effects that can be created, even simple products and messages can look very attractive.
Q.29 Mr. Ajay decided to open a store like Big Bazaar where he would offer wide range of products for satisfying the needs of different customer. But Prem has suggested him to go for multiple stores like dominos where he would be able to offer only a limited range of products. Now Ajay has to decide whether he should opt for his decision or go with Prem’s suggestion. Discuss any six points of factors that will help Ajay to differentiate between these two sectors.
Answer:
| Basis of difference | Departmental store | Chain store |
| a) Wide Range | Departmental stores offer wide range of products for satisfying the need of different customer. |
Chain stores do not offer wide range of products. They are specialised In one line of product. |
| b) Location | Departmental stores are centrally located. |
Chain stores are located in different localities. |
| c) Risk | High degree of risk | Risk gets spread all over the stores |
| d) Services | Departmental stores provide large number of services such as credit facility, discounts, free home delivery etc. |
Chain stores do not provide such services to their customers |
| e) flexibility | It deals in a variety of product, they have certain flexibility in respect of the line of goods marketed. |
There is not much scope for flexibility in the chain store which deal only in limited line of products |
| f) Pricing | Not uniform | Uniform pricing |
Q.30 Ms. Priya is running a small restaurant by the name of Deliciousness. It is earning profits and she wishes to expand her business by opening a bigger outlet. She needs additional funds for the same but she does not wish to rely on borrowed funds to expand her business. Name and briefly explain two sources of finance which she can use. Also state two reasons why she does not want to raise borrowed funds.
Answer: The two sources of finance she can use to expand her business are:
1. Equity Shares: Equity shares is the most important source of raising long term capital by a company.
Equity shares represent the ownership of a company and thus the capital raised by issue of such shares is known as ownership capital or owner’s funds.
2. Preference Shares: The capital raised by issue of preference shares is called preference share capital.
The preference shareholders enjoy a preferential position over equity shareholders in two ways: (i) receiving a fixed rate of dividend, out of the net profits of the company, before any dividend is declared for equity shareholders; and (ii) receiving their capital after the claims of the company’s creditors have been settled, at the time of liquidation.
Limitations of raising money through borrowed funds:
1. As fixed charge instruments, borrowed funds put a permanent burden on the earnings of a company. There is a greater risk when earnings of the company fluctuate.
2. Banks make detailed investigation of the company’s affairs, financial structure etc., and may also ask for security of assets and personal sureties. This makes the procedure of obtaining funds slightly difficult.
CBSE Class 10 Element of Business Sample Paper 2023 Pdf
Here we provide CBSE Class 10 Element of Business Sample Paper2023 in pdf format, Candidates of class 10 can download CBSE Element of Business Sample Paper Class 10 2023 and boost of their preparation for the upcoming CBSE Class 10 Board Exam 2023.
CBSE Element of Business Sample Paper Class 10 2023 Pdf Download
