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Class 12 - Business Studies

Sample Paper 04

Maximum Marks: 40
Time Allowed: 90 minutes

General Instructions:

1. The Question Paper contains 3 sections.

2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.

Section A
1. Management is not ________.
a. Intangible force
b. Group Activity
c. Goal Oriented
d. Tangible force
2. Which principle of Fayol indicates that workers should be encouraged to develop and carry out plans
for improvements.
a. Unity of command
b. Unity of direction
c. Discipline
d. Initiative
3. Reducing the role of the Public Sector and increasing the role of the Private Sector falls under ________.
a. Liberalisation and Privatisation
b. Privatisation
c. Liberalisation
d. Globalisation
4. Which activity will be a futile exercise if it is not acted upon or implemented?
a. Management
b. Directing
c. Coordination
d. Planning
5. Which of the following is not a part of the organizing process?
i. Division of work
ii. Assigning of responsibility
iii. Specialization
iv. Establishing a reporting relationship
a. ii and iii
b. only iii
c. iv and i

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d. i and ii
6. What type of relationship exists between the degree of accuracy of sales forecasts and the level of
inventory?
a. Indirect
b. Direct
c. Vary according to situation
d. Indifferent
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7. The words cooperation and coordination are ________.
a. Opposite
b. Synonym
c. Complementary
d. All of these
8. Scientific management brings:
a. Social change
b. Mental change
c. Industrial change
d. Economic change
9. The introduction of mobile phones has negatively affected the business of watches and cameras.
Which factor of the business environment is related to the sentence?
a. Social environment
b. Political environment
c. Technological environment
d. Legal environment
10. Match the following and select the appropriate option.
(i) Setting objectives (a) Assumption about future

(ii) Developing Premises (b) Monitoring the plans

(iii) Evaluating alternatives (c) Increase in sales by 20%

(iv) Follow-up action (d) Weigh the pros and cors

a. (i) - (c), (ii) - (a), (iii) - (d), (iv) - (b)
b. (i) - (c), (ii) - (a), (iii) - (b), (iv) - (d)
c. (i) - (d), (ii) - (b), (iii) - (a), (iv) - (c)
d. (i) - (d), (ii) - (c), (iii) - (a), (iv) - (b)
11. What is the correct order of the organising process?
i. Assignment of Duties
ii. Departmentalization
iii. Identification and Division of work
iv. Establishing reporting relationships.
a. iv, ii, i, iii
b. iii, ii, i, iv
c. i, iii, ii, iv
d. ii, i, iii, iv
12. ________ mix of marketing mix includes the activities relating to persuading and motivating customers
to buy the product.

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a. Place
b. Promotion
c. Price
d. Product
13. Efficiency is concerned with:
a. Cooperation
b. Completion of task
c. Right man at right job
d. Utilisation of minimum resources
14. This technique of Taylor is an extension of the principle of Fayol:
a. Motion study
b. Fatigue study
c. Functional foremanship
d. Time study
15. Relaxing the restriction and controls imposed on business and industry means ________.
a. Globalisation
b. Liberalisation
c. Privatisation
d. None of these
16. Planning is a time-consuming process:
a. importance
b. objective
c. limitation
d. benefit
17. Right of an individual to command his subordinates is ________.
a. Accountability
b. None of these
c. Responsibility
d. Authority
18. Get out production, cut the price is the philosophy of ________.
a. Product concept
b. Production concept
c. Selling concept
d. Marketing concept
19. To exploit fully the growth potential of the organization management is talking about which objective?
a. Organizational objective
b. Social objective
c. Economic objective
d. Personal objective
20. Which principle is an extension of harmony, not discord?
i. cooperation, not individualism
ii. espirit de Corps
iii. initiative
iv. discipline
a. iv and i
b. iii and iv
c. only i

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d. ii and iii
21. For the protection of a consumer's right, there is ________.
a. Consumer protection Act 1984
b. Consumer Protection Act, 1986
c. Consumer Protection Act, 1956
d. Consumer Protection Act, 1932
22. Match the following and select the appropriate option.
(i) Primary function (a) New plan to be drawn after a period

(ii) Pervasive (b) An intellectual activity

(iii) Mental exercise (c) Required at all departments

(iv) Continuous (d) Precedes other functions

a. (i) - (c), (ii) - (a), (iii) - (b), (iv) - (d)
b. (i) - (b), (ii) - (a), (iii) - (d), (iv) - (c)
c. (i) - (c), (ii) - (b), (iii) - (d), (iv) - (a)
d. (i) - (d), (ii) - (c), (iii) - (b), (iv) - (a)
23. How is accountability created?
a. By assigning responsibility
b. Both by assigning authority and by assigning responsibility
c. By assigning authority
d. By delegating.
24. Sports events and press conferences are part of:
a. Personal selling
b. Public relations
c. Sales promotion
d. Advertising
Section B
25. In order to be successful, the management of an organisation has to change its goals and policies
according to the environment. Which characteristic of management is highlighted in the statement?
a. Management is dynamic process
b. Management is continuous process
c. Management is intangible process
d. Management is pervasive process
26. Which of the following is not a principle of scientific management?
a. Mental Revolution
b. Science, not rule of thumb
c. Cooperation not individualism
d. Functional foremanship
27. Under which environmental effect, IBM and Coca-Cola had to leave India?
a. Social
b. Political
c. Economic
d. Technical
28. What resources are specially kept in view in planning?
a. Unlimited resource
b. Limited resource

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c. Abundant resource
d. Both Limited and unlimited resource
29. Under accountability a person is answerable for the:
a. Growth of comapny
b. None of these
c. Delegation of Authority
d. Final outcome of the assigned task
30. Japanese technique Just In Time is related to which component of Physical Distribution?
a. Transportation
b. Warehousing
c. Inventory Control
d. Order Processing
31. The force that binds all the other functions of management is called:
a. Controlling
b. Planning
c. Cooperation
d. Coordination
32. The principles of management are significant because of _________ .
a. Optimum utilisation of resources
b. Initiative
c. Adaptation to changing technology
d. Increase in efficiency
33. The complete awareness and understanding of the business environment are called ________.
a. Privatisation
b. Environmental awareness
c. Liberalisation
d. Technological advancement
34. SWOT Analysis is a strong part of ________.
a. Selling
b. Publicity
c. Marketing
d. None of these
35. Which of the following is not included in Top Level Management?
a. Accountant
b. Managing Director
c. Chief Executive
d. Board of Directors
36. Which of the following is not concerned with the Price?
a. Margins
b. List price
c. Advertising
d. Discounts
37. Vaani Ltd. feels that cost of its products is too high. It looks for ways to bring down the cost. Which
concept of marketing Vaani Ltd. is applying in this situation?
a. Marketing concept
b. Selling concept
c. Product concept

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d. Production concept
38. What is the last step in organising process?
a. Assignment of duties
b. Establishing reporting relationship
c. Departmentalisation
d. Identification and division of work
39. You don't close a sale, you open a relationship if you want to build a long-term successful enterprise.
Identify the communication tool used by the marketer.
a. Advertising
b. Public relations
c. Personal selling
d. Sales promotion
40. Which nature is not present in Principles of management ?
a. Universal
b. Flexible
c. Behavioural
d. Absolute
41. Environment is synonym with ________.
a. relation
b. people
c. external factors
d. task
42. Which organisation structure is compulsory?
a. Informal
b. Both Formal and Informal
c. Functional
d. Formal
43. ________ develop relationship.
a. Personal Selling
b. Advertisement
c. Sales Promotion
d. Publicity
44. Which of the following is not a feature of accountability?
a. It can be delegated
b. It is answerable for final outcome of the assigned task
c. It arises from responsibility
d. It flows upwards from subodinate to superior
45. ________ is called marketeer.
a. Seller
b. Satisfaction Provider
c. Service Provider
d. Satisfaction Seeker
46. Grouping of activities in accordance with their nature:
a. division of work
b. departmentalization
c. specialization
d. decetralization

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47. When Khanak carpets develops new carpets that are highly stain resistant and durable, it wants to
educate customers about the benefit of product. Which one of the following marketing mix variables is
relevant here?
a. Promotion
b. Product
c. Distribution
d. Price

48. Assertion (A): Delegation has a greater scope than Decentralisation.

Reason (R): Delegation is the routine function of managers.

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.
Section C

Question No. 49 to 54 are based on the given text. Read the text carefully and answer the
questions:

Two years ago Radhika completed her degree in food technology. She worked for some time in a
company manufacturing chutneys, pickles and murabbas. She was not happy in the company and
decided to have her own organic food processing unit for the same. She set the objectives and the
targets and formulated an action plan to achieve the same. One of her objectives was to earn 10% profit
on the amount invested in the first year. It was decided that raw materials like fruits, vegetables,
spices, etc. will be purchased on three months credit form farmers cultivating organic crops only. She
also decided to follow the steps required for the marketing of the products through her own outlets.
She appointed Rakesh as a production manager who decides the exact manner in which the production
activities are to be carried out. Rakesh also prepared a statement showing the number of workers that
will be required in the factory throughout the year. Radhika informed Mohan about her sales target for
different products, area-wise for the forthcoming quarter. While working on the production table a
penalty of 100 per day for not wearing the caps, gloves and apron was announced.

49. Which function of management has been discussed in the above para?
a. Staffing
b. Planning
c. Organising
d. Directing
50. One of the aims was to earn a 10% profit on the amount invested in the first year. Which type of plan
has been discussed here?
a. Policy
b. Standing Plan
c. Objectives
d. Rule
51. Raw materials like fruits, vegetables, spices, etc. will be purchased on three months' credit from
farmers cultivating organic crops only. Which type of plan has been discussed here?
a. Policy
b. Objectives

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c. Rule
d. Standing Plan
52. To follow the steps required for the marketing of the products. Which type of plan has been discussed
here?
a. Procedure
b. Objectives
c. Standing Plan
d. Rule
53. Statement showing the number of workers that will be required in the factory throughout the
year. Which type of plan has been discussed here?
a. Objectives
b. Policy
c. Rule
d. Programme
54. She realised that the function she is performing requires higher thinking and long hours of dedication.
Which characteristic of the function identified above is discussed here?
a. Pervasive
b. Continuous
c. Mental Exercise
d. Futuristic
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55. Which degree is essential to become a manager?
a. M.B.A.
b. M.Com
c. None of these
d. B.Com
56. The role of ________ in functional foremanship is to check the quality of work done by the workers.
a. Maintenance Foreman
b. Gang Boss
c. Speed Boss
d. Inspector
57. Choose the correct matches
(i) Liberalisation (a) Relaxation in tarrifs

(ii) Globalisation (b) Disinvestment in public sector

(iii) Privatisation (c) World level production

a. (i) - (c), (ii) - (b), (iii) - (a)
b. (i) - (b), (ii) - (a), (iii) - (c)
c. (i) - (a), (ii) - (c), (iii) - (b)
d. (i) - (a), (ii) - (b), (iii) - (c)
58. Buy it now refers to which promotional tool?
a. Advertising
b. Public relations
c. Personal selling
d. Sales promotion

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59. Authority refers to the right of an individual to command his subordinates and take action:
i. within the scope of his position
ii. ​out of the scope of his position
iii. commensurate with his manager
iv. to any extent
a. iv and i
b. ii and iii
c. iii and iv
d. only i
60. Which of the following is the function of marketing?
a. Transport
b. Physical Distribution
c. All of these
d. Promotion

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Class 12 - Business Studies

Sample Paper 04

Solution

Section A
1. (d) Tangible force
Explanation: Management is not a tangible force because it cannot be touched and seen but its
presence can be felt by seeing the orderliness and coordination and satisfaction among employees.
2. (d) Initiative
Explanation: Initiative
3. (b) Privatisation
Explanation: Reducing the role of the Public Sector and increasing the role of the Private Sector falls
under Privatisation.
4. (d) Planning
Explanation: Planning is not just creating a plan but it is about following it.
5. (b) only iii
Explanation: Specialization does not form part of organising process.
6. (a) Indirect
Explanation: An indirect relationship exists between the degree of accuracy of sales forecasts and the
level of inventory.
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complete study material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams.
7. (c) Complementary
Explanation: Coordination and cooperation are complementary.
8. (b) Mental change
Explanation: Scientific management brings mental change.
9. (c) Technological environment
Explanation: The introduction of mobile phones has negatively affected the business of watches and
cameras is related to the technological environment.
10. (a) (i) - (c), (ii) - (a), (iii) - (d), (iv) - (b)
Explanation: (i) - (c), (ii) - (a), (iii) - (d), (iv) - (b)
11. (b) iii, ii, i, iv
Explanation: The organizing process starts with identification and division of work followed by
departmentalization, assignment of duties, and end on establishing reporting relationships.
12. (b) Promotion
Explanation: Promotion
13. (d) Utilisation of minimum resources
Explanation: Efficiency is concerned with complete the task with a minimum cost of resources
by using less resources (i.e., the inputs) to derive more benefits (i.e., the outputs). Efficiency is also
increased when for the same benefit or outputs, fewer (minimum) resources are used and less costs are
incurred.
14. (c) Functional foremanship
Explanation: Fuctional foremanship.
15. (b) Liberalisation
Explanation: Liberalisation
16. (c) limitation

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Explanation: Planning is a time-consuming process and it is one the limitation of planning.

17. (d) Authority
Explanation: Authority is the right to make a decision because of a managerial position. It determines
the superior-subordinate relationship. It arises through the scalar chain informal organisations due to
various job positions. Thus authority is a right to command one's subordinates.
18. (b) Production concept
Explanation: Production concept
19. (a) Organizational objective
Explanation: To exploit fully the growth potential of the organization management is talking about
organizational objective here.
20. (c) only i
Explanation: Cooperation, not individualism is an extension of harmony, not discord.
21. (b) Consumer Protection Act, 1986
Explanation: Consumer Protection Act, 1986 seeks to protect and promote the consumer's interest
through speedy and inexpensive redressal of their grievances.
22. (d) (i) - (d), (ii) - (c), (iii) - (b), (iv) - (a)
Explanation: (i) - (d), (ii) - (c), (iii) - (b), (iv) - (a)
23. (c) By assigning authority
Explanation: By assigning authority accountability is created.
24. (b) Public relations
Explanation: Public relations includes conferences, events etc.
Section B
25. (a) Management is dynamic process
Explanation: Management is dynamic process
26. (d) Functional foremanship
Explanation: Functional foremanship
27. (b) Political
Explanation: Under the political environmental effect, IBM and Coca-Cola had to leave India.
28. (b) Limited resource
Explanation: Limited resources are specially kept in view of planning.
29. (d) Final outcome of the assigned task
Explanation: Accountability is the final step of the delegation process and arises from responsibility. It
means subordinates will be answerable for the non-completion of task or final output. It can not be
delegated.
30. (c) Inventory Control
Explanation: Just In Time is related to Inventory Control.
31. (d) Coordination
Explanation: Coordination work with all the other functions of management.
32. (d) Increase in efficiency
Explanation: Increase in efficiency
33. (b) Environmental awareness
Explanation: Environment scanning is the process by which organisations monitor their relevant
environment to identify opportunities and threats. It finds out the influence of different factors and
persons on the business.
34. (c) Marketing
Explanation: SWOT analysis is a strong part of marketing. The SWOT analysis will be a useful tool in
developing and confirming your goals and your marketing strategy.

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35. (a) Accountant

Explanation: Top-level management consists of the senior-most executives of the organisation. They
are usually referred to as the Chairman, Board of Directors, Managing Directors etc. An accountant is
not a position of senior-most executive in an organisation.
36. (c) Advertising
Explanation: Advertising is the part of the promotion mix not a price mix in the marketing mix.
37. (d) Production concept
Explanation: Production concept
38. (b) Establishing reporting relationship
Explanation: The steps are
i. Division of work
ii. Grouping the jobs and departmentalisation
iii. Assignment of duties
iv. Establishing a reporting relationship
39. (c) Personal selling
Explanation: Personal selling
40. (d) Absolute
Explanation: Principles of management are not absolute rather than they are :
Flexible- Principles of management are not rigid as these can be modified as per the situation.
Universal applicable- The principles of management are intended to apply to all types of
organisations, business as well as non-business, small as well large, public sector as well as the
private sector, manufacturing as well as the services sectors.
Mainly behavioural- Management principles aim at influencing the behaviour of human
beings. Therefore, the principles of management are mainly behavioural in nature.
41. (c) external factors
Explanation: The environment is synonym with external factors and forces.
42. (d) Formal
Explanation: The formal organization structure is compulsory.
43. (a) Personal Selling
Explanation: Personal Selling is face to face selling which helps in developing relationships.
44. (a) It can be delegated
Explanation: It can be delegated
45. (b) Satisfaction Provider
Explanation: Providing Satisfaction to customers.
46. (b) departmentalization
Explanation: departmentalization means grouping similar tasks.
47. (a) Promotion
Explanation: Promotion
48. (d) A is false but R is true.
Explanation: Delegation is limited in scope. Decentralization is wider in scope than delegation.
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Section C
49. (b) Planning
Explanation: Planning
50. (c) Objectives
Explanation: Objectives

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51. (a) Policy

Explanation: Policy
52. (a) Procedure
Explanation: Procedure
53. (d) Programme
Explanation: Programme
54. (c) Mental Exercise
Explanation: Mental Exercise
55. (a) M.B.A.
Explanation: MBA is required to become a manager.
56. (d) Inspector
Explanation: Inspector
57. (c) (i) - (a), (ii) - (c), (iii) - (b)
Explanation: (i) - (a), (ii) - (c), (iii) - (b)
58. (c) Personal selling
Explanation: Personal selling
59. (d) only i
Explanation: Action to be taken within the scope of his position
60. (c) All of these
Explanation: All of these are functions of marketing.

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