Business Studies

Class XII

Practice Paper

Time: 3hrs M.M: 80

Q.1 In order to be successful every organization is required to change its style of

working and policies according to the needs of the changing environment.
Which characteristic of management is highlighted here? (1)
Q.2 In ABC Ltd. paternalistic style of management is in practice. There is complete
openness between the management and workers. In case the workers want to
show dissatisfaction against the management then they work more than normal
working hours.
Which principle of Scientific Management is followed in ABC Ltd.? (1)
Q.3 Indian Govt. is planning to introduce GST from 1st April 2017, which will replace
the different types of taxes of the different states and thus uniformity in indirect
tax system may be ensured throughout the country.
Which dimensions of business environment is involved in the implementation of
GST Act? (1)
Q.4 Name the type of plan which is in the form of general statement that guides
thinking towards a particular direction and helps the management of an
organization in solving routine problems. (1)
Q.5 Name the function of management, which coordinates human effort, assemble
resources and integrates both into a unified whole to be utilized for achieving
objectives of the organization. (1)
Q.6 Mr. Rajendra has retired from an organization in which he was responsible for
implementing the plans developed by the top management. At which level of
management was he working? Explain any two of its functions. (3)
Q.7 KPL Ltd. is adjudged as the Best Employer of the 2016. In the company only
major decisions are taken by the top management and there is a systematic
dispersal of authority. The company believes in nurturing the employees. As a
result the absenteeism and labor turnover is negligible. The employees are very
happy. The customers were also very happy because their orders are delivered
on time and grievances are addressed quickly.
(a) Identify the concept of management discussed in the above para.
(b) Quote the line which helped you in identifying the concept.
 (c) State any two merits of the concept so identified in (a) above. (3)
Q.8 Randhir, a worker, is given a target of assembling two computers per day. Due to
his habit of doing things differently, an idea struck him, which would not only
reduce the assembling time of computers but would also reduce the cost of
production of computers. Randhir’s supervisor, instead of appreciating him,
ordered him to complete the work as per the methods and techniques decided
earlier as nothing could be changed at that stage.
The above para describes one of the limitations of planning function of
management. Name and explain that limitation. (3)
Q.9 A recent cut in the rate of interest on loans announced by the banks encouraged
Amit, a science student of a school, to take a loan from State Bank of India to
experiment and develop cars to be powered by fuel produced from garbage. He
developed such a car and exhibited it in the science fair organized by education
department, where he was awarded first prize for his invention.
Identify and explain the dimensions of business environment discussed in the
above case. (3)
Q.10 If this principle is violated ‘Authority is undermined, discipline is in jeopardy, order
disturbed and stability threatened’.
Identify and explain the principle of management discussed here. (3)
Q.11 “Management is a profession like Medical or Legal profession”.
Do you agree with this statement? Give reasons in support of your answer. (3)
Q.12 Mr. Satyender is working as the Vice President of Sundari Ltd. Name the
managerial level at which he is working.
State any three functions he will perform as the Vice President in this company.
(4)
Q.13 Ms. Neeru and Mr. Sunil both were employed in a multinational company at the
same level from the same date. Both proved to be hardworking for the
organization and their boss was also happy for their work, who treats them
equally. After two years, at the time of performance appraisal the performance of
Ms. Neeru was just better than Mr. Sunil. Even then their boss decided to
promote Mr. Sunil to the higher post stating that only one post was available and
being a female Ms. Neeru, will not be able to handle the complications of a
higher post right now.
(a) Identify and explain the principle of management which was not followed by
the boss of Ms. Neeru and Mr. Sunil.
 (b) Identify the values which are being ignored by the boss of Ms. Neeru and Mr.
Sunil. (4)
Q.14 Identify the type of dimension of environment to which following are related:-
a) A cut in the repo rate by the Central Bank of a country.
b) Increase in the number of working women in a country.
c) Making of various payments by means of internet banking.
d) Prohibition on the sale and purchase of alcohol by the govt. (4)
Q.15 A company allows to months credit to its customers but in case any customer
fails to fulfill his/her commitment on time, then interest @ 10% p.a. on the late
payment is charged from him/her.
Identify the types of plans involved and give any three differences between them.
(4)
Q.16 Ratan is the production head of Total Manufacturing. He distributes the work
within his department on the basis of his likes and dislikes.
Identify and explain the steps of organizing which is not properly followed by
Ratan. Also state any two values which have been neglected by Ratan. (4)
Q.17 A truck manufacturing company has its registered office in Delhi and
manufacturing unit in Chennai. The company manufactures different types of
trucks. Its marketing division is located in Noida.
Suggest a suitable organizational structure for this company giving reasons in
support of your answer. Also explain any three advantages of this structure. (5)
Q.18 “All Electronics Ltd.”, an electronics goods manufacturing concern wants to
expand its area of operation. It requires some additional employees for the same.
It evaluated the various sources of recruitment available to it and decided to go
for the campus placement as same could provide energetic and fresh blood to it,
which could prove more fruitful for the concern in future.
(a) Which function of management was performed by the top management?
(b) Identify the steps of the function which have already been performed by “All
Electronics Ltd.” management.
(c) State other two steps yet to be followed by the management in the above
case. (5)
Q.19 After implementation of Economic Policy 1991, management of the business
houses across the country in India faced a number of difficulties like, increase in
competition, increased demand and expectation of customers, rapidly changing
technological environment, loss budgetary support to public sector etc. To
 survive, develop and grow in such a changed and challenging scenario the
managers has to face above mentioned hurdles.
Explain how the managers responded to the changes in business environment.
(5)
Q.20 Mr. Sam was running an enterprise comprising of over hundred people in all,
working at various levels. It does have a chain of authority and communication
that is followed by managers and the subordinates and it is not violated in the
normal course of communication. But in case of emergency, a worker is
permitted to contact another worker of same level directly.
(a) Identify and explain the principle of management discussed above.
(b) In which type of communication the above identified principle should not be
violated in the normal course?
(c) In case of emergency how a worker can contact another worker at the same
level? (5)
Q.21 XYZ Ltd. is a garment manufacturing company operating from one of the rural
villages in the state of Jharkhand to promote the sale of Indian Handloom and
Handicraft products. Mr. Roopesh Verma was appointed at the post of manager
by the management 2 years back and he was authorized to undertake all the
steps to ensure achievement of the objectives of the company. Mr. Roopesh
Verma decides when to undertake the production of the different garments along
with the quantities, varieties and size etc. He was also authorized to select the
suppliers to ensure timely availability of resources. He undertakes various steps
to ensure availability of sufficient skillful employees in the company to complete
the assigned task on time. In order to improve the productivity of the employees
he continuously communicates with them, sort out their problems and also
praises their effort to motivate them. Based on last 2 years working Mr. Roopesh
Verma suggested to the management that special offers must be given during
festival seasons to improve the sales and to achieve reduction in the cost of
production.
Quoting the lines form the above identify the various functions of management
which are performed by the manager, Mr. Roopesh Verma in XYZ Ltd. (5)
Q.22 “The manager is required to make certain assumptions about future. These
assumptions are the base material upon which the plans are to be drawn”.
(a) Identify and explain the step in the function of management referred in the
above statement.
(b) Explain the next four steps followed by the step so identified in (a) above. (6)
Q.23 It is the harmonious adjustment of specialized parts for the accomplishment of
some common purpose/purposes.
Identify the function of management mentioned in the statement and explain its
importance. (6)

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