CBSE Class 10 Elements of Business 2020 Question Paper

Time allowed is 3 hours and Maximum Marks are 70. All questions are compulsory. Questions from serial no. 1 to 16 are Objective Type Questions carrying one mark each. Questions from serial no. 17 to 22 carry 3 marks each. Questions from serial no. 23 to 26 carry 4 marks each. Questions from serial no. 27 to 30 carry 5 marks each.

1. A Public Limited Company must have at least ___________ members.

  1. Two
  2. Four
  3. Five
  4. Seven

2. Which of the following is not a source of ownership capital ?

  1. Equity shares
  2. Preference shares
  3. Debentures
  4. Retained earnings

3. A company’s common seal is deemed to be its ______________ .

  1. Trademark
  2. Logo
  3. Signature
  4. Signboard

4. A company’s shareholder is its ______________ .

  1. Agent
  2. Manager
  3. Owner
  4. Creditor

5. External communication is required for establishing links with

  1. Employees
  2. Customers
  3. Owners
  4. Managers

6. In video-conferencing the participants :

  1. can see each other but cannot hear each other.
  2. can hear each other but cannot see each other.
  3. can hear and see each other.
  4. can touch each other.

7. A multinational company is a company :

  1. which has members belonging to different countries.
  2. which exports to different countries.
  3. which imports goods from different countries.
  4. which has factories/offices in two or more than two countries.

8. Bata shoe shops are an example of ____________ .

  1. Multiple shops
  2. Departmental stores
  3. Speciality product shops
  4. Local market shops

9. Which of the following is an example of non-store retailing ?

  1. Departmental store
  2. Super bazar
  3. Mall
  4. Sale through vending machine

10. In the case of no profit or insufficient profit, a company will not be bound to pay this :

  1. Salary to the employees
  2. Interest to shareholders
  3. Dividend to shareholders
  4. Commission to selling agents

11. In a credit sale :

  1. Payment is not made at the time of delivery, it is made later.
  2. Payment is not made by cash, it is made by cheque.
  3. Payment is not made by cash, it is made online.
  4. Payment is not made by cash, it is made by credit card.

12. Distribution of free samples is a technique of _____________ .

  1. Advertisement
  2. Publicity
  3. Sales promotion
  4. Personal selling

13. The full form of e-mail is :

  1. Easy mail
  2. Electronic mail
  3. Economic mail
  4. Exclusive mail

14. In which of the following does the ownership right in goods dispatched remain with the seller ?

  1. Cash sale
  2. Credit sale
  3. Sale on hire purchase basis
  4. Sale under instalment payment system

15. This document is sent by a customer to the seller : 

  1. Invoice
  2. Purchase order
  3. Quotation
  4. Delivery note

16. Which of the following is not used for making payment ?

  1. Cheque
  2. Debit card
  3. Credit card
  4. Pay-in-slip

17. What is meant by limited liability of members in a public company limited by shares ?


What is meant by a government company ? State any two characteristics of such a company.

18. Give any three points of difference between hire purchase method and sale under instalment payment system.

19. State any three advantages of using letters as a means of communication in business.

20. What is teleshopping ?

21. What is meant by an equity share ? State any two characteristics of equity shares that differentiate them from preference shares.

22. What is credit sale ? On 1st September, 2019 A sold goods to B for ₹ 4,000 for which B gave a post-dated cheque dated 30th December, 2019 to A. Is this a cash sale or credit sale ?

23. State any three demerits of ownership capital as compared to borrowed capital.

24. Explain the following characteristics of a company :

  1. Artificial person
  2. Perpetual succession

25. State any two merits and any two demerits of verbal communication.

26. Explain the advantages of television advertising.

27. Explain the merits and demerits of multiple shops.


Explain the advantages and disadvantages of sale through internet.

28. Describe the advantages and limitations of video-conferencing.

29. Describe the various steps involved in the process of buying.

30. What is meant by sales promotion ? Explain its importance.