✅ SECTION A — SUBJECTIVE QUESTIONS (60 QUESTIONS + ANSWERS)
(Business Communication, Accounting, Economics, Business Environment)
🟦 PAPER 1: BUSINESS COMMUNICATION (Subjective)
1. Define Business Communication. Why is it important?
Answer:
Business communication is the exchange of information within and outside an organisation to achieve business goals.
Importance: Ensures clarity, coordination, faster decisions, better relationships, and efficient management.
2. Explain the 7Cs of effective communication.
Answer:
Clarity, Conciseness, Correctness, Completeness, Courtesy, Coherence, Concreteness.
3. What are communication barriers? Give examples.
Answer:
-
Physical: Noise
-
Semantic: Jargon
-
Psychological: Emotions
-
Organisational: Long hierarchy
-
Cultural: Different backgrounds
4. Differentiate between formal and informal communication.
Answer:
Formal → Structured, official, documented.
Informal → Casual, unofficial, grapevine.
5. What is non-verbal communication? Why is it important?
Answer:
Communication through gestures, facial expressions, and posture.
It enhances verbal messages and conveys emotions.
6. Write any five types of business letters.
Answer:
Inquiry, Order, Complaint, Adjustment, Sales, Banking letters.
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7. What is report writing? Mention its format.
Answer:
Report: Structured presentation of information.
Format: Title → Terms → Findings → Conclusion → Recommendations.
8. Explain “Agenda” and “Minutes”.
Answer:
Agenda → List of items to be discussed.
Minutes → Official written record of proceedings.
9. What is digital communication? Give examples.
Answer:
Using electronic devices to communicate.
Examples: Email, WhatsApp, social media.
10. Explain downward and upward communication.
Answer:
Downward → From top management to employees.
Upward → Feedback/reports from employees to managers.
🟩 PAPER 2: FUNDAMENTALS OF ACCOUNTING (Subjective)
11. Define accounting. What are its objectives?
Answer:
Accounting is the process of recording, summarising, and reporting transactions.
Objectives: Determine profits, maintain records, and provide information for decisions.
12. Explain any five accounting concepts.
Answer:
Going Concern, Accrual, Consistency, Prudence, Materiality.
13. What is a journal? Write its format.
Answer:
A journal is the book of original entry.
Format: Date | Particulars | L.F | Debit | Credit.
14. Explain the rules of debit and credit.
Answer:
-
Personal: Dr Receiver, Cr giver
-
Real: Dr, what comes i?, Cr. what goes out
-
Nominal: Dr expenses/losses, Cr incomes/gains
15. What is a ledger?
Answer:
A book containing classified accounts transferred from the journal.
16. What is a trial balance? Purpose?
Answer:
List of all ledger balances. Ensures arithmetical accuracy.
17. Explain the concept of depreciation.
Answer:
Allocation of asset cost over its useful life due to wear and tear/obsolescence.
18. What is the Straight Line Method?
Answer:
Depreciation = (Cost – Scrap Value) ÷ Useful Life.
19. What is BRS? Why is it prepared?
Answer:
Bank Reconciliation Statement matches the bank book & passbook to locate differences.
20. Explain final accounts.
Answer:
Trading A/c → P&L A/c → Balance Sheet showing financial performance and position.
21. What are accounting errors?
Answer:
Errors of omission, commission, principle & compensating.
22. Differentiate between capital and revenue expenditure.
Answer:
Capital → Long-term benefit.
Revenue → Short-term, recurring.
23. What is a balance sheet?
Answer:
Statement showing assets, liabilities & capital on a specific date.
24. Explain “Provision” and “Reserve”.
Answer:
Provision → For known liability.
Reserve → Profit set aside for strengthening the business.
25. What is a contra entry?
Answer:
A transaction affecting both cash and bank simultaneously.
🟧 PAPER 3: ECONOMIC & BUSINESS ENVIRONMENT (Subjective)
26. Define economics.
Answer:
Science that studies human behaviour regarding scarce resources.
27. Explain demand and its determinants.
Answer:
Demand = willingness + ability to buy.
Determinants: Price, income, tastes, population.
28. What is the elasticity of demand?
Answer:
Degree of responsiveness of demand to price changes.
29. Explain GDP and GNP.
Answer:
GDP → Total domestic output.
GNP → GDP + income from abroad – income to foreigners.
30. What is inflation? Types?
Answer:
Rise in the general price level.
Types → Demand-pull, cost-push.
31. Explain unemployment.
Answer:
People are willing to work but cannot find jobs.
Types: Frictional, cyclical, structural.
32. What is fiscal policy?
Answer:
The government uses taxes & expenditure to regulate the economy.
33. Explain monetary policy.
Answer:
RBI controls money supply via CRR, SLR, and repo rate.
34. What are the features of the Indian economy?
Answer:
Mixed economy, large population, service sector dominance.
35. What is the business environment?
Answer:
Internal & external factors affecting business decisions.
36. Explain PESTLE.
Answer:
Political, Economic, Social, Technological, Legal, Environmental factors.
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37. Explain primary, secondary & tertiary sectors.
Answer:
Primary → Agriculture
Secondary → Manufacturing
Tertiary → Services
38. What is a money market?
Answer:
Short-term funds market (T-bills, CPs, CDs).
39. What is the capital market?
Answer:
Long-term funds market (shares, debentures).
40. What is globalisation?
Answer:
Integration of national economies through trade & investment.
41. Explain the WTO.
Answer:The
World Trade Organisation regulates global trade.
42. What is entrepreneurship?
Answer:
Process of starting & managing a new business venture.
43. What are MSMEs?
Answer:
Micro, Small, and Medium Enterprises based on investment & turnover.
44. Explain corporate governance.
Answer:
System of rules ensuring fairness & transparency in companies.
45. What is CSR?
Answer:
Corporate Social Responsibility—companies must spend 2% on social activities.
🟥 SECTION B — OMR/MCQ QUESTIONS (40 QUESTIONS)
(Business Laws + Business Management)
🟦 PAPER 4: BUSINESS LAWS (MCQs)
46. A valid contract requires:
A. Offer
B. Acceptance
C. Consideration
D. All of the above
Answer: D
47. Contract becomes void when:
A. Parties are minors
B. Consideration is illegal
C. Free consent is missing
D. All of these
Answer: D
48. Goods of the same kind are called:
A. Specific goods
B. Unascertained goods
C. Satisfactory goods
D. Homogeneous goods
Answer: B
49. Unpaid seller has the right of:
A. Lien
B. Stoppage in transit
C. Re-sale
D. All the above
Answer: D
50. “Separate legal entity” applies to:
A. Company
B. Partnership
C. Proprietorship
D. HUF
Answer: A
51. Minimum directors in a public company:
A. 2
B. 5
C. 3
D. 7
Answer: C
52. LLP stands for:
A. Limited Liability Partnership
B. Legal Liability Partnership
C. Lawful Limited Partner
D. None
Answer: A
53. Consumer Protection Act was amended in:
A. 2018
B. 2019
C. 2020
D. 2021
Answer: B
54. Trademark is valid for:
A. 1 year
B. 5 years
C. 10 years
D. 15 years
Answer: C
55. A cheque is a:
A. Bill of exchange
B. Promissory note
C. Bank draft
D. None
Answer: A
🟩 BUSINESS MANAGEMENT (MCQs)
56. Management is a:
A. Art
B. Science
C. Profession
D. All of these
Answer: D
57. First function of management:
A. Organizing
B. Planning
C. Controlling
D. Staffing
Answer: B
58. Matrix organisation is a combination of:
A. Functional + divisional
B. Functional + formal
C. Project + informal
D. None
Answer: A
59. Maslow’s highest need is:
A. Safety
B. Esteem
C. Social
D. Self-actualization
Answer: D
60. Leadership style with high control:
A. Laissez-faire
B. Autocratic
C. Democratic
D. Free-rein
Answer: B
61. Controlling ensures:
A. Future plans
B. Standards are achieved
C. Delegation
D. Communication
Answer: B
62. SWOT stands for:
A. Strengths,Weaknessess, Opportunities, Threats
Answer: A
63. Decision-making is part of:
A. Planning
B. Leading
C. Organizing
D. Controlling
Answer: A
64. Informal organisation develops:
A. Through structure
B. Naturally
C. By law
D. By policy
Answer: B
65. Motivation is:
A. Financial reward only
B. Non-financial reward only
C. Both
D. None
Answer: C
66. Communication is:
A. One-way
B. Two-way
C. Three-way
D. None
Answer: B
67. Leader who involves employees in decisions:
A. Autocratic
B. Democratic
C. Laissez-faire
D. Passive
Answer: B
68. Budgeting is part of:
A. Planning
B. Organizing
C. Staffing
D. Leading
Answer: A
69. Organisation charts show:
A. Goals
B. Structure
C. Controlling
D. Budgeting
Answer: B
70. Delegation means:
A. Sharing work
B. Giving authority
C. Holding accountability
D. All
Answer: D
71. Vision is:
A. Future direction
B. Present actions
C. Past performance
D. None
Answer: A
72. Mission means:
A. Why organisation exist
Answer: A
73. Performance appraisal evaluates:
A. Sales
B. Employee performance
C. Assets
D. All
Answer: B
74. Benchmarking is:
A. Comparing with best practices
Answer: A
75. Controlling includes:
A. Setting standards
B. Measuring performance
C. Correcting deviations
D. All
Answer: D
76. Corporate governance ensures:
A. Transparency
B. Ethical conduct
C. Accountability
D. All
Answer: D
77. Formal communication flows:
A. Official channels
Answer: A
78. Grapevine is:
A. Informal communication
Answer: A
79. Planning reduces:
A. Risk
B. Efficiency
C. Control
D. None
Answer: A
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