SECOND PRE-BOARD EXAMINATION, JAN.

2021
SET A
SUBJECT : BUSINESS STUDIES MARK : 80
CLASS : XII TIME : 3 HR
SUB CODE : 054 DATE : 14/01/2021
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Instructions:
• This question paper contains 34 questions.
• Marks are indicated against each question.
• Answer should be brief and to the point.
• Answers to the questions carrying 3 marks may be from 50 to 75 words.
• Answers to the questions carrying 4 marks may be about 150 words.
• Answers to the questions carrying 6 marks may be about 200 words.
• Attempt all parts of the questions together.
1. Ram is working as a superintendent in a factory.
State the level of management at which he is working.
a)Top level b)Middle level c)Supervisory level d)Administrative level (1)

2. The force that binds all the other functions of management is called
a)Controlling b)Coordination c)Cooperation d)Planning (1)

3. Taylor focussed his attention on

a) Shop level b) Top level c)Middle level d) Administrative level (1)

4. Administrative principles were given by-

a) FW Taylor b) Henry Fayol c) Abraham Maslow d) W W Taylor (1)

5. Which principle is an extension of ‘Harmony, Not Discord’?

a)Cooperation, Not Individualism b)ESpirit de Corps
c) Initiative d)Discipline (1)

6. Rahim wanted to start with a stationery app to help students of schools and college to provide
stationery to them. He felt that students were not able to get the needed stationery at ease and
hence wanted to provide the stationery directly to students in the school. He list out the various
ways of setting up this business and finally selected the best way to set up this business
is by developing an app. Suggest what should be the next step.
a) Developing premises b) Identifying the alternative course of action.
c) Implementation of plan d) Follow up action. (1)

7. Which one of the following is a limitation of planning:

a) Pervasive b) Futuristic c) Continuous d) Rigidity (1)

8. Ram was given a task by his superior to prepare a plan in 15 days. He asked two of his
subordinates to work upon two aspects of his task. One of the subordinate met with an accident
and could not complete his work. Who is answerable for this task?
a) Ram is accountable. b) Ram’s subordinate is responsible.
c) Ram’s superior is responsible. d) None of them is responsible. (1)
9. Grouping of activities on the basis of functions is a part of:
a) Decentralisation b) Divisional Organisation
c) Functional Organisation d) Centralisation (1)

10. The advantages of recruiting an employee by Advertising method is_________

a) Fresh graduates with latest technology b) Wider choice of qualified personnel
c) Limited choice d) Economical (1)
OR
Recruitment is widely viewed as a _________ process
a) Positive b) Negative c) Both positive and negative d) None (1)

11. No interference of superior in taking decision by subordinates in

a) Autocratic leadership b)Democratic leadership
c) Free rein leadership d) Paternalistic leadership (1)

12. Full utilization of potential and capacity of employees can be seen in

a. Autocratic leadership b) Democratic leadership
c) Free rein leadership d) Paternalistic leadership (1)

13. Measurement of employees’ performance can be done by ______________.

a) Increasing the market share of the company b) Gross profit ratio
c) Return on investment d) Performance report (1)

OR

Which one of the following is not the step in the process of controlling?
a) Measurement of actual performance. b) Establishing reporting relationship.
c) Setting performance standards. d) Taking corrective action (1)

14. Other things remaining the same if fixed operating cost is high the firm would opt to raise
finance from
a)Debentures b) Bills receivable c) Equity shares d)Commercial paper (1)

15. Floatation cost is high in

a)Equity shares b)Retained earnings c)Debentures d)Dividend (1)

16. Which instrument does not relate to money market

a) Call Money b) Treasury bill c) Commercial Bill d) IPOs (1)

17. Controlling insider trading is a

a) Development function b) Protective function
c) Both, protective and development function d) Regulatory function (1)

18. Which money market instrument is also known as Zero Coupon Bonds ?
a) Treasury Bill b) Call money c) Certificate of Deposit d) Commercial Bill (1)

19. Which of the following is the right marketing mix for a Television Set
a) Price, Place, Promotion, Process b) Product, price, promotion, process
c) Product, price, place, process d) Product, promotion, price, place (1)
20. The consumer must be assured whenever possible access to a variety of goods and
services at competitive prices.
a) Right to Consumer Protection Act b) Right to choose
c) Right to safety d) Right to be heard (1)

21. Explain ‘Science, not rule of thumb’ and ‘Harmony, not discord’ as principles of
Scientific Management given by F.W.Taylor. (3)

22. Sunidhi runs a KPO (Knowledge Process Outsourcing) in Gurgaon. The services provided by
her firm include all kinds of research and information gathering in fields such as financial
market, medicine, animation and design, etc. Sunidhi believes that the success of the company
can be achieved mainly through the people it chooses to employ. Therefore, she aims to attract the
best people and provides them innumerable opportunities to enhance their knowledge and skill
relevant to their position.
In context of the above case, identify and explain the aspects of staffing being taken into
consideration by Sunidhi by quoting lines from the paragraph. (3)

23. “Controlling is an indispensable function of management. Without controlling even the best plans
may fail.” Do you agree? Explain any two reasons in support of your answer.
OR
“It is generally believed that measurement of performance should be done after the task
is completed.”
Identify and explain the step in the process of the function of management being discussed
above and the step followed by the same in the process. (3)

24. ‘Though branding adds to cost, it provides several advantages to the marketers.’ In the light of the
statement, state any three advantages of branding to marketers.
OR
Discuss the process of marketing management. (3)

25. Mega Ltd. was manufacturing water-heaters. In the first year of its operations, the revenue
earned by the company was just sufficient to meet its cost. To increase the revenue, the
company analysed the reasons for less revenue. After an analysis, the company decided
(i) to reduce the labour cost by shifting the manufacturing unit to a backward area where labour
was available at a very low rate.
(ii) to start manufacturing solar water heaters and reduce the production of electric water heaters
slowly. This will not only help in covering the risk, but in meeting other objectives to.
Identify and explain the objectives of management discussed above. (4)
26. With change in the consumption habits of people, Neelesh, who was running a sweets shop
shifted to chocolate business. On the eve of Diwali he offered chocolates in attractive packages
at reasonable prices. He anticipated huge demand and created a website chocolove.com for
taking orders online. He got lot of orders online and earned huge profit by selling chocolates.
Identify and explain the dimensions of business environment discussed in the above case.
OR
Explain by giving any four points, why “in the present-day competitive market, it is essential for a
business to remain alert and aware of its environment. (4)
27. Suhasini a home science graduate from a reputed college has recently done a cookery course.
She wished to start her own venture with a goal to provide ‘health food’ at a reasonable price.
She discussed her idea with her teacher (mentor) who encouraged her. After analyzing various
options for starting her business venture, they shortlisted the option to sell readymade
and ‘ready to make’ vegetable shakes and sattu milk shakes. Then, they both weighed the pros
and cons of both the shortlisted options.
(i) Name the function of management being discussed above and give any one of its characteristics.
(ii) Also briefly discuss any three limitations of the function discussed in the case. (4)

28. A newly appointed Personnel Manager is of the view that there is no need for training the workers.
Do you agree with this statement? Give reasons in support of your answer.
OR
Name the concepts which relate to the following.
(i) Assessing the present and future requirements of the workers.
(ii) Determining competence of the employee
(iii) Streamlining the attributes of a person required for doing a job.
(iv) Searching for prospective candidates. (4)

29. Ketan won a cash price of Rs. 20,000 in the National Level Robotics Competition. On the advise of
his father, he visits a nearby bank to open a Fixed deposit account in his name with the prize money.
His sister Suhasini accompanied him to bank. On reaching the bank,he notices big banners which are
placed within the premises containing information about the various arrangements through which
corporates may raise their capital through the bank. Being a finance graduate, Suhasini explains to
Ketan that banks play the role of the financial intermediary by helping in the process of channelizing
the savings of the household into the most profitable business ventures.
In the context of the above case:
(a) Name another financial intermediary that helps in the process of channelizing the savings of the
households into the most productive use.
(b) Also, outline any two functions of that another financial intermediary as identified in part (a). (4)

30. Sudhanshu saw a weight reducing electric machine advertisement on the television. He purchased it
and decided to use it.
The moment he plugged the machine he got an electric shock. As a result he died instantly. He was
survived by a minor son, Vedant. His relatives suggested Vedant to file a case claiming
compensation of Rs. 50 Lakhs.
(a) Who can file a case against the company?
(b) Where should the complaint be filed and why?
OR
Mr. Soni, a consumer, purchased medicines without noticing the date of expiry. He also did not
obtain the cash memo.
Do you think he will be able to protect himself by the loss caused due to expired medicine? Give
reasons in support of your answer. (4)
31. A steel manufacturing company has the following main jobs:
(i) Manufacturing (ii) Finance (iii) Marketing (iv) Personnel, and
(v)Research and Development
Which type of organizational structure will you choose for this type of a company and why?
State any 5 advantages of this organizational structure. (6)

32. Well-being Ltd. is a company engaged in production of organic foods. Presently, it sells its
products through indirect channel of distribution. But, considering the sudden surge in the
demand for organic products, the company is now inclined to start its online portal for
direct marketing. The financial managers of the company are planning to use debt in order
to take advantage of trading on equity. In order to finance its expansion plans, it is planning
to raise a debt capital of Rs. 40 lakhs through a loan @ 10% from an individual bank.
The present capital base of the company comprises of 9 Lakh equity shared of Rs. 10 each.
The rate of tax is 30%.
In the context of the above case:
(a) What are the two conditions necessary for taking advantage of trading on equity?
(b) Assuming the expected rate of return on investment to be the same as it was for the current year
(i.e) 15%, do you think the financial managers will be able to meet their goal.
Show your workings clearly. (6)

33. Name the element of marketing mix which affects the revenue and profits of a firm. Explain any
five factors which help in determining this element.
OR
Differentiate between ‘Advertising’ and ‘Personal Selling’ on any 6 basis. (6)

34. Discuss ‘Maslow’s need hierarchy is considered fundamental to the understanding of motivation.
Explain the role of need hierarchy in motivation. (6)

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