Nirmal Bhartia School 8th Sept, 2021

Half-Yearly Examination Max Time: 1.5 hour

(2021-22) Max Marks:40
Class-XII
Business Studies

Instructions:
1.Question Paper has 40 MCQs.
2.All questions carry 1 mark each.
3.All questions are compulsory.
4.Along with right option selected, write the complete statement as well. Attempt the
question paper in order.

SECTION-A -OBJECTIVE QUESTIONS

1.Saurabh decided to start a chocolates manufacturing business. He set the target of earning
10% profit on sales in the first year. As a good businessman, he was concerned about the
future of the business, which was uncertain. He gathered information that the demand for
chocolates is increasing day by day. He used this information as the base for future planning
and shared it with his team. On the basis of the gathered information, he scheduled a meeting
in the following week to find innovative ways to achieve the objectives. Identify one out of
the two steps, which have been followed by Saurabh that are related to the process of one of
the functions of management.

(a) Follow up action

(b) Selecting an alternative

(c) Developing Premises

(d) Evaluating alternative courses 1

2. Span of management refers to:

(a) Number of managers

(b) Length of term for which a manager is appointed

(c) Number of subordinates under a superior

(d) Number of members in top management 1

3.After completing their education, Parul and Shalu opened a Mobile Shop by the name of
‘Aosv Mobile Shoppee’. They started their business with the latest models of mobile phones
of four companies: Apple (A), Oppo (O), Samsung (S) and Vivo (V). On account of their

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good dealings and excellent products, within a few days, there used to be a big rush at their
shop. As there was a big sale—they built up a big stock of the mobile phones of all the four
companies. Within a few days all the four companies launched the new models of mobiles in
the market. None of these companies took the old stock back and they had to suffer a heavy
loss. They had never expected that such a thing could also happen. They were going on by
taking the permanent speed of their sale for granted. Now they realised how important it was
to be aware of what was going around.

What particular ‘feature of business environment’ does the above event indicate?

(a) Relativity

(b) Uncertainty

(c) Complexity

(d) Inter-relatedness 1

4. Ekagra had severe pain in his throat, so he called up the doctor and asked for a telephonic
advice. The doctor prescribed him a sachet of Throat Reliever Hot Sip. He asked his servant
to get a sachet from a local chemist with a cash memo. After consuming the sachet, he started
feeling more ill, so he picked up the empty sachet and started reading the label. To his utter
dismay, the sachet had already expired last month. Which of the following remedies is not
available to him any longer as a consumer?
(a) To withdraw the hazardous goods from sale.
(b) To replace the defective product with a new one.
(c) To refund the price paid for the product.
(d) To pay a reasonable amount of compensation for any loss suffered by the consumer due to
the negligence of the opposite party. 1

5. Om Prakash has set up a small business unit for the manufacturing of detergent. In order to
market the detergent in the local residential areas, he has appointed a team of ten salesmen.
Each salesman is expected to sell at least 200 units of the detergent within a week’s time.
Identify the point of importance of controlling being highlighted in the above case.
(a) Controlling helps in judging accuracy of standards.
(b) It ensures efficient use of resources.
(c) It helps in improving employee motivation.
(d) It facilitates co-ordination in action. 1

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6. Match the functions of management with their respective examples:

Function of management Examples

1. Planning A. Conform actual results with planned results

2. Organizing B. Bridge the gap where we are and where we want to go

3. Staffing C. Establishing authority responsibility relationship

4. Directing D. Right people for the right job

5. Controlling E. Putting resources into action

Identify the correct option:

(a) 1-A, 2-E, 3-D, 4-B, 5-C

(b) 1-A, 2-E, 3-C, 4-B,5-D

(c) 1-B, 2C, 3-D 4-E,5-A

(d) 1-C, 2-D, 3-A, 4-E,5-B 1

7. Assertion (A): Both the workers and management both honour their commitments without
any prejudice towards one another.

Reason (R): The principles of ‘Espirit De Corps’ says that management should promote a
team spirit of unity and harmony among employees.

Find the correct option:

(a) Both A and R are true and R is the correct explanation of A

(b) Both A and R are true but R is not the correct explanation of A

(c) A is true but R is false

(d) A is false but R is true 1

8. Saksham Aggarwal is the manager of a department in ‘Madhuban Motors Pvt. Ltd.’ He has
been performing a major role in the planning of the company for the last several years. His
tendency is that he takes the successful plans of the previous years as the basis for the year to
come. He believes that as these plans have given good results earlier, in future also they will
be successful. For years together, this belief of his continued to be successful. But one year
was such that this basis of his plans turned out to be completely unsuccessful. Now he
realised that it is not necessary that in future also the state of affairs will continue to be the
same as it was in the years gone by and that the same plans will yield good results. Now he

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understood the false sense of security settled in his mind with regard to the results of plans.
Finally, he changed his old tendency of making plans in future. Identify the ‘limitation of
planning’ in the event described above.

(a) Planning provides direction.

(b) Planning does not guarantee success.

(c) Planning leads to rigidity.

(d) Planning involves huge costs. 1

9. ‘Himalaya Ltd.’, is engaged in manufacturing of washing machines. The target of the

organisation is to manufacture 500 washing machines a day. There is an occupational
specialisation in the organisation which promotes efficiency of employees. There is no
duplication of efforts in such type of organisation structure. Identify the type of organisation
structure described above.

(a) Divisional Organisation

(b) Functional Organisation

(c) Informal Organisation

(d) None of the above 1

10. ‘Neerja Milk Producer Pvt. Ltd.’ was established to produce tasty and nutritious dry milk
for small children. The company gave its product the brand name ‘Mother’s Love’. The
company publicized its product very much and produced the goods of supreme quality. Being
impressed by the quality of the product, the people purchased the ‘Mother’s Love’ brand in
no time. Here one particular thing was that the company had lain its full emphasis on the
packaging of their product. On the milk box were written the ‘instructions of use’. Besides, it
was also written that ‘mother’s milk is the best’. To write this was the legal requirement. The
company was very much successful and within a days, it became the leader in its industry.
Which ‘dimension of the business environment’ is perceived from the event quoted above?

(a) Technological Environment

(b) Political Environment

(c) Legal Environment

(d) Economic Environment 1

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11. Read the following statements -Assertion (A) and Reason (R), and select the correct
alternative in each case:

Assertion (A) Business Environment is dynamic.

Reason (R) It becomes easy to comprehend at once what exactly constitutes a given
phenomenon.

(a) Both Assertion(A) and Reason (R) are true.

(b) Both Assertion (A) and Reason (R) are false.

(c) Assertion (A) is true and Reason (R) is false.

(d) Assertion (A) is false and Reason (R) is true. 1

12. Avika Chatterjee, the Padma Shri recipient, in a petition filed in 2012 said that she had
faced humiliation and loss of reputation, as a transaction using a bank’s debit card at a hotel
in the Netherlands’ Rotterdam failed, though she had a balance of more than 10 times the
billed amount in her account. The bank claimed that the incident was a case of “force
majeure”, which means a natural and unavoidable catastrophe or an act of God, and was
beyond is control. A consumer court in Chennai has directed the bank to pay a compensation
of lakh to Dipika Pallikal for “deficiency in service”. The bank was also directed to pay her
₹5,000 as expenses. Identify the right of consumers being exercised in the given case.
(a) Right to safety
(b) Right to be heard
(c) Right to seek redressal
(d) Right to consumer education 1

13. Yash runs a logistic company. The Tour In charges of each trip in the company are
expected to submit a report to the Event Manager on the completion of every trip. Identify the
step in the controlling process being described in the above lines.
(a) Setting of standards
(b) Measurement of actual performance
(c) Taking corrective action
(d) Analysing the deviations 1

14. Texla Limited is a color television manufacturing company. The directors of the company
have asked their production manager to achieve a target production of 150 televisions per
day. The production manager has asked his foreman to achieve this target but he did not give
him the authority for the requisition of tools and materials from the stores department. The
foreman could not achieve the desired target. Can the directors blame the production manager
and can the production manager blame his foreman for not achieving the target?

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(a) Yes, the directors can blame the production manager because delegation does not mean
abdication.

(b) No, the directors cannot blame the production manager because he will not be
accountable for the assigned tasks as he has delegated that to his foremen.

(c) Yes, the foremen can be blamed by the production manager as they did not achieve the
task assigned.

(d) all of the above. 1

15. Roshan Sodhi looks after the job of production in ‘Roshan and Roshan Entertainment Pvt.
Ltd.’ Mr Sodhi is a famous managing expert. He does every function of management
skilfully, namely, planning, organising, staffing, directing and controlling. While planning for
his department, he gives a special attention setting standards. He completes the other jobs in a
normal manner, and at the end, again, he pays a special attention to the job of controlling.
Here he determines the deviation by comparing the standards with the actual performance.
Afterwards the corrective action is taken. Keep in mind that these standards are the same as
were determined during planning. In this way, Mr Sodhi is doing the job of production
successfully. Identify the ‘importance of planning’ in the event described above.

(a) Planning provides direction.

(b) Planning promotes innovative ideas.

(c) Planning establishes standards for controlling.

(d) Planning facilitates decision making. 1

16. Which of the following arises from the responsibility?

(a) Responsibility
(b) Accountability
(c) Authority
(d) None of the above 1

17. Mrs Radha Goswami is a sales manager in ‘Radha Krishan Limited’. The company was
never in favour of sale on credit. Recently, due to the entry of several foreign companies in
the market, the competition has increased. In order to overcome this problem, Mrs Goswami
decided to do the sale on credit. The condition of sale on credit was that in the account of any
buyer the balance would not exceed ™ five lac at any time and that the maximum duration of
paying off would be fifteen days. If the payment was made within this duration, no interest
would be imposed, and if the payment was made on the 16th day, the interest for sixteen days
would be realised.

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What do you learn about the ‘importance of business environment’ from the event stated
above?

(a) It helps in assisting in planning and policy formulation.

(b) It helps in improving performance.

(c) It helps in tapping useful resources.

(d) It helps in coping with rapid changes. 1

18. In a colony several people purchased mosquito killing rackets from a company. The
majority of rackets turned useless within a period of two months. Rishank who was one of the
residents of the colony decided to take the matter to the consumer court but the residents were
not united and he felt himself alone on the issue. The price of the racket was Rs.450.
Meanwhile one of the friends of Rishank who was a journalist reported about the incident in a
daily newspaper. When the company learnt about the situation it decided to take a milestone
step. The company decided to lake back or repair all the faulty rackets from the residents of
the society. The whole story took an interesting twist when a technician from the company
told the management that in the instruction book provided with the racket it was written to
clean the racket with special care after every one month. When enquired it was found that the
residents with faulty rackets including Rishank didn’t clean their rackets after one month. At
which level of consumer court could Rishank apply for the claim of his loss?

(a) District Forum

(b) State Commission

(c) National Commission

(d) None of the above 1

19. In a marketing firm, the Financial Manager pays more attention towards an increase of
3% in the marketing cost as compared to a 15% increase in the courier expenses. Identify the
concept being used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
(d) None of the above 1

20. Assertion (A): The job of the lower level is complex and stressful, demanding long hours
and commitment to the organisation.

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Reason (R): Lower level managers interact with the actual work force, pass on the
instructions, supervise their work, maintains quality of products, maintains safety standards
and so on.

Find the correct option:

(a) Both A and R are true and R is the correct explanation of A

(b) Both A and R are true but R is not the correct explanation of A

(c) A is true but R is false

d) A is false but R is true 1

21. ‘Rasina Industry’ is in crisis due to the Corona Pandemic. It needs a professional
specialist for its planning. To do this job it appointed Mr Rudramani Rana. The company
asked him to do planning at the earliest. But Mr Rana said that planning is not any
guesswork, which may be immediately completed. Rather, it is a logical and systematic-
thinking. In other words, planning is something orderly and is based on facts and forecast. Mr
Rana took full time for planning and succeeded in doing a better planning. Identify the
feature of planning in the event described above.

(a) Planning is continuous.

(b) Planning is futuristic.

(c) Planning involves decision making.

(d) Planning is a mental exercise. 1

22. V-Mart is a well-known chain of large department store offering various types of
products under one roof. The company owns fifty stores in various parts of the country. Each
store is placed under the charge of a manager who is allowed to rim their stores
autonomously by deciding about the products which may be promoted, the appointment of
staff, ways to handle customer complaints etc. As these managers have a deeper knowledge
of the local situations, it enables them to take these decisions effectively keeping in view the
local circumstances and consumers’ needs. This approach helps to improve customer service
and at the same time serves to boost morale and increase the job satisfaction of the store
managers as it empowers them to innovate and use their initiatives. The policy followed by
‘V-Mart’ to run their stores successfully is:

(a) Delegation of Authority

(b) Decentralization

(c) Division of Work

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(d) Organizing 1

23. On account of continuing Corona virus, for months together there remained the
lockdown. During this period, the people remained confined to their houses. The articles of
food and drink which used to be ordered from the market began to be prepared at home. From
the ‘YouTube’ and ‘Google’, the home makers learnt to prepare everything at home, which
earlier used to be available at the sweet-maker’s shop and restaurants. The people realized
that every food item prepared at home was more tasty and nutritious than that of the market.
Now, the people have become used to it. Even when the lockdown was lifted the people
preferred the home-made food and sweets to have. It so appears that now the consumption
habits of people have changed. This habit of the people has affected the market. To which
particular dimension of the business environment is the above stated incident related?

(a) Economic Environment

(b) Social Environment

(c) Technological Environment

(d) Political Environment 1

24. Vikrant had some problem walking on the road. He purchased a pair of shoes with high
heels. After some time of using these shoes, his pain increased as he did not know that there
were medically recommended shoes available in the market for this problem. .After a few
days of giving himself rest he approached a shop where the medically recommended shoes
were sold. He was amazed to learn that the company making the shoes was holding
workshops at different places in order to make the people suffering with such problem aware
of an available option. Which consumer responsibility was not fulfilled by Vikrant?

(a) read instructions given about the product

(b) take Cash Memo after paying for a product

(c) be aware about various goods and services available in the market

(d) respect the environment 1

25. A Company has been registered under the Companies Act with an authorized share
capital of Rs.20,000 crores. Its registered office is situated in Delhi and manufacturing unit in
a backward district of Rajasthan. Its marketing department is situated in Bhopal. The
company is manufacturing Fast Moving Consumer Goods (FMCG). Which type of
organizational structure would suit the requirements of the company?

(a) Divisional structure

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(b) Functional Structure

(c) Matrix Structure

(d) None of the above. 1

26. (I) Delegation of authority is inevitable and decentralization is voluntary.

(II) Scope of delegation of authority is limited and the scope of decentralization is broad.

Both the above statements are:

(a) True

(b) False

(c) Statement (I) is True and Statement (II) is False

(d) Statement (I) is False and Statement (II) is True 1

27. Vaibhav, aged 54 is working in an aviation company. He is the senior most employee in
his division. He is even senior to the division manager, Ramaswamy. Vaibhav is considered
one of the most committed, capable and hard-working employees. As a result of his abilities
and seniority, he generally received the work assignments of his choice. Although there was
no formal designation of various 'special' projects assigned to Vaibhav, he handled them as a
matter of routine. A problem developed when an able and intelligent person Anubhav, aged
33, was appointed by Ramaswamy. Anubhav's previous three years' experience in the closely
related work, made it possible for him to catch on to the routine work of his new job more
rapidly than was customary for a new employee. On several occasions, Ramaswamy noticed
the tension developing between the two employees. However, he didn't want to get involved
in their personal issues as long as the work was completed effectively and efficiently by
them. One day, the tension between them reached the boiling point and Vaibhav complained
to Ramaswamy stating that his duties were being largely taken over by Anubhav.
Ramaswamy issued the order stating the clear allocation of the jobs and related duties
between the two. He further clarified the working relationship between them by specifying
who was to report to whom. This helped in reducing the workload, enhancing productivity
and removing ambiguity. the step of organizing process which has not been carried out
properly and contributed to this problem.

(a) Identification and division of work

(b) Departmentalization
(c) Assignment of duties
(d) Establishing working relationships 1

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28. Read the following statements -Assertion (A) and Reason (R), and select the correct
alternative in each case:

Assertion (A) Planning promotes innovative ideas.

Reason (R) Since planning is the first function of management, new ideas can take the shape
of concrete plans.

(a) Both Assertion(A) and Reason (R) are true.

(b) Both Assertion (A) and Reason (R) are false.

(c) Assertion (A) is true and Reason (R) is false.

(d) Assertion (A) is false and Reason (R) is true. 1

29. Anvi and Aaru are two twin sisters. Both of them have completed their education, and
now they want to establish a business unit. The two sisters divided the whole work into two
parts: One, the different particular resources needed; two, the expectation of the society from
them. The first job came to Anvi’s and the second, to Aaru’s share. Anvi prepared a list
which showed what different resources they would need and from where they would be made
available. This list mainly included finance, machinery, raw material, power, water, labour,
etc. Similarly, Aaru’s list showed the provision of better products and services to the
customers and payment of taxes to the government and sufficient return to the investors will
have to be made. Both of them realised that only the environment will provide them with all
the necessary resources and the platform for the sale of their products. Keeping this fact in
view, they prepared a balanced policy. Identify the point of ‘importance of business
environment’ on the basis of the event described above?

(a) It helps the firm in identifying the threats and early warning signals.

(b) It enables the firm in identifying opportunities and getting the first mover advantage.

(c) It helps in tapping useful resources.

(d) It helps in coping with rapid changes. 1

30. Which of the following statement is not true about Taylor and Fayol?

(a) Taylor worked at shop floor area whereas Fayol worked top level of management

(b) Taylor’s contribution was applicable to specialized situations whereas Fayol’s

contribution was universally applicable.

(c) Taylor’s contribution was based on personal experiences whereas Fayol’s contribution
was based on observations and experimentations.

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(d) Taylor’s contribution was towards increasing productivity whereas Fayol’s contribution
was on improving overall administration. 1

On the basis of the below case study answer the following questions-

"Shoolini Enterprises" is enjoying a good reputation in the market. Kavita Mendiratta, the
General Manager, has acquired her MBA degree from Oxford University and as a result of
her knowledge of management principles and excellent managerial competence, the
enterprise is success is because of the good management. The effect of management is
noticeable because targets are being met in time, employees are happy and satisfied; and
there is orderliness instead of chaos. She motivated her team so well that individual members
were able to achieve personal goals while contributing to the overall organizational
objectives. She is a visionary and understands the value of good personnel in an organization.
Hence, she proposed to keep budget for opening crèche for the kids of female employees.

31. At what level Kavita Mendiratta is working?

(a) Top Level

(b) Middle Level

(c) Lower Level

d) Supervisory Level 1

32. Which feature of management is discussed in above case study?

(a) Management is all Pervasive

(b) Management is Intangible

(c) Management is a Continuous Process

(d) Management is Multidimensional 1

33. Which nature of management is highlighted in the case study?

(a) Management is an Art

(b) Management is a Science

(c) Management is a Profession

(d) Both Science and Art 1

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34. Which objective of management Kavita focused at?

(a) Organisational Objectives

(b) Personnel Objectives

(c) Social Objectives

(d) Growth Objectives 1

35. Identify the reason that has made management so important from the above case study.

(a) Helps in achieving personnel objectives

(b) Creates dynamic organization

(c) Helps in development of society

(d) All of above 1

On the basis of the below case study answer the following questions-

Kashish Kapoor, a young entrepreneur has set up a private limited company to manufacture
different kinds of eco-friendly packaging materials. He has done his MBA from Japan and
served in a Japanese company for three years. He proposed to adapt to logical approach to his
business rather than hit and trial method as he knows that this can result in tremendous saving
of human energy as well as wastage of time and materials. He got highly influenced with the
Japanese work culture, so he planned to adopt paternalistic style of management in his
factory as well. His father appreciated the Japanese culture but advised him to modify the
principles as per the demand of the situation. For greater productivity, he believed in
separation of planning and execution functions and decided to extend this concept to the shop
floor. He believed that an organization cannot succeed without winning the confidence of his
employees and for that it is very important that management and workers both honour their
commitments. He shared his vision with his managers. His team was very excited to have
new ideas and an enthusiastic entrepreneur.

36. "He proposed to adapt to logical approach to his business rather than hit and trial method
as he knows that this can result in tremendous saving of human energy as well as wastage of
time and materials." Which importance of principle of management is highlighted in this
sentence?

(a) Scientific decision

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(b) Optimum utilization of resources and effective administration

(c) Providing managers with useful insight into reality

(d) Fulfilling social responsibility 1

37. "He got highly influenced with the Japanese work culture, so he planned to adopt
paternalistic style of management in his factory as well." Which scientific principle of
management is Kashish Kapoor talking about?

(a) Science, not rule of thumb

(b) Harmony, not discord

(c) Cooperation not individualism

(d) Development off each and every person to his or her greatest efficiency. 1

38. "His father appreciated the Japanese culture but advised him to modify the principles as
per the demand of the situation." Identify the nature of principles of management.

(a) General guidelines

(b) Mainly behavioural

(c) Flexible

(d) Contingent 1

39. "For greater productivity, he believed in separation of planning and execution functions
and decided to extend this concept to the shop floor." Which technique of scientific
management has been referred to in above lines?

(a) Simplification

(b) Differential Piece Wage system

(c) Functional Foremanship

(d) Standardisation 1

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40. "He believed that on organization cannot succeed without winning the confidence of his
employees and for that it is very important that management and workers both honour their
commitments." Identify Fayol's principle of management highlighted in above lines.

(a) Discipline

(b) Equity

(c) Espirit de Corps

(d) Initiative 1

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