2 PRACTICE PAPER

Time: 90 minutes
Max. Marks: 40
Instructions:.Same as CBSE Sanple Question Paper (2021-22).
General

SECTION-A
Centralisation refers to:
1.
(a) Retention of decision-making authority (b) Dispersal of decision-making authority
c)Creatingdivisions as profit centres (d) Opening new centres or branches
2. Which of the following is the example of Shaving Cream?
(a) Primary Packaging (6) Secondary Packaging
)Transport Packaging (d) None of the above
3. is the essence of Planning.
(a) Organising (b) Controlling
(c) Forecasting (d) Directing
4. Which of the following is an example of social environment?
(a) Money supply in the economy (6) Consumer Protection Act
C)The Constitution of thecountry d) Composition of family
5. Products are not purchased but sold', with which point of view is this statement associated?
(a) Product Concept (b) Selling Concept
c)Production Concept (d) Marketing Concept
6. Identify the nature of management when it is practised as
personal application of
knowledge to achieve desired results. existing
(a) Management is an art
() Management is a profession
(c) Management is a science
(d) Management is both an art and a science
7. In what situation has
Fayol permitted the violation of the Principle of Scalar Chain?
(a) When the employee extraordinarily capable
is
(b) At the time of sudden
happening
(c) In all conditions and circumstances
(d) In no condition or situation
8.
Marketing includes in it
(a) Buying () Selling
(c) Storing (d) All of these

Practice Papers | 165

 9. Your unele has retired from an responsible
organisation in which he is for
implementi
enting
plans developed by the top management
At which level of
management was he working?
(a) Top Management (b) Middle Management

)Operational Management d) None of these

T0.
Grouping of activities on the basis of functions is part of:
a

(a) Decentralised organisation (6) Divisional organisation

() Functional organisation (d) Centralised organisation
T1. Match the 'Importance of Planning in Column-I with their respective statements in Column-ll:
Column-I Column-II
(a)Planningprovides direction. )Planning shows the ways to deal with changes
) Planning reduces the risk of (ü) | Planning helps in avoiding Contusions and
uncertainty.
misunderstanding.
(c) Planning reduces (i)| Planning clarifies how work is to be done'.
Overlapping and
wasteful activities.
(a) (i), (ü), (ii) (b) ii), ), (i)
(c)(iri), (i),. ) (d) ), (ii), (i)
12. Name the process which
provides the requisite amount, quality, timing and sequence of efforts
and ensures that planned objectives are achieved with a minimum of conflict.

(a) Coordination (b) Planning

(c) Directing (d) Controlling
13. makes flexibility available.
(a) Publicity (b) Advertisement
c) Sales Promotioon d) Personal Selling
14. The collection of utilities is known as

(a) Purchaser (b) Seller

(c) Product (d) Market
15. 'More delegation of authority helps managerial development'. Out of the following with which
is this statement related to?
(a) Delegation (b) Decentralisation
(c) Centralisation (d) All of these
16. Which of the following is not a part of the internal environment?
(a) Customers (b) Objectives
(c) Policies (d) Organisation Structure
17. Three subordinates- S1, S2 and S3 receive orders from Mr A'. In such a
situation which principle
of management is being observed?
(a) Equity (6) Order
c) Unity of command (d) Unity of direction
18. starts after the production of things.
(a) Buying (b) Selling
(c) Marketing (d) Advertising
19. Which of the following is not an element of delegation?
(a) Accountability (6) Authority
)Responsibility (d) Informal organisation
166| Business Studies-XIl: Term-1
 of the following is not the internal element of limitation of Planning?
W'hich
20
(h) Raw material
)mreasC m populaton
(d) Mac hine

various
terms relating to 'Fixation of Price in Column-I with their
, atch
Mate
the
statements in Column-11:
respective

Column-1
Column-IlI
(a)'roductcost )Actually, it fixes the price of the
product
() It determines the
6)ilitv oftheproduct upper limit of the price.
Excnt
o f copetition (i) It sets the lower limit of the price.
(u). () (6) (i). ), (in)
(a) (n).
(7). (0), () d) ). i). (i)
Which of the following best indicates the importance of business environment?
22.
(a) Identification (6) Improvement in performance
d) All of them
Coping with rapid changes
principle of management increases the efficiency of subordinates?
23.
(a) Scalar chain (6) Equity
(c) Effective centralisation (d) Unity of command

24. implies completing the work in hand irrespective of the cost.

(a) Eftectiveness (b) Efficiency
c) Planning (d) Controlling

SECTION-B
25. In order to be successful, an organisation must change itself and its goals according to the
needs of the environment. Regarding this we have the example of McDonalds, the fast food
giant made major changes in its menu to be able to survive in the Indian market. Identify the
characteristics of management mentioned in the above case.
(a) Management is an intangible force. (b) Management is a dynamic function.
(c)Management is a group activity. (d) Management is a continuous process.
26. In Japanese companies, paternalistic style of management is in practice. There is complete
openness between the management and workers. If at all workers go to strike they wear a black
badge but work more than normal working hours to gain the sympathy of the management.
Name the principle of scientific management which is followed by the Japanese companies.
(a) Harmony, not discord
(b) Cooperation, not individualism
(c) Science not rule of thumb
(d) Development of each and every person to his or her greatest efficiency and prosperity

27. Chandra Chemicals Ltd.' is a newly established company of its industry. The goals of the
company have been very well defined. The employees know what the organisation aims at doing
and what they should do for the realisation of the goal. The company did the planning in such
a way that all the departments and employees are able to work in coordination. This is the very
result of successful planning that the company is moving forward on the path of success.
On the basis of the event stated above tell why planning is important.
(a) Planning provides direction.
(6) Planning reduces the risk of uncertainty.
)Planning reduces overlapping and wasteful activities.
(d) Planning promotes innovative ideas.

Practice Papers | 167

 h e objective of the Marlketing Department of 'Sunderam Kids Wear Ltd. is to increase
crease sales
by 10 per cent by offering discounts. But, the finance department may not approve of
discounts as it means loss of revenue. These kinds of conflict arise in organisations su ch
Cach department is performing activities in isolation from others and barriers betw. ecause
departments are becoming more rigid. tween
ldentity the point of importance of coordination to which this case is related:
(a) Growth in size b) Functional differentiation
() Specialisation (d) None of these
29. Every organisation desires that it should have goodwill in the minds of all concerned. T
establish goodwill, it is essential to have dialogue. It is by way of dialogue that an organisation
gets the necessary informations.
How is it
possible?
(a) Through public relations (6) Through advertising
(c) Through sales promotion (d) Through personal selling
0 A petrol pump needs to be managed as much as a hospital or a school. What managers do in
ndia, the USA, Germany or Japan is the same. How they do it may be quite different. This
difference is due to the differences in culture, tradition and history.
ldentify the characteristics of management that has been mentioned here.
(a) Management is a
goal oriented process (6) Management is all pervasive
(C) Management is multi-dimensional (d) Management is a continuous process
S1.
Itthenis the belief of 'suvidha Garments Pvt. Lid' that if the quality of goods/services is
good
the customers can easily be attracted. The basis of this thinking is that the customers
get attracted towards the product of good quality. On the basis of this thinking the company
directs its marketing efforts towards improving the quality of its product.
Identify the marketing philosophy as mentioned in para.
(a) Product philosophy (b) Selling philosophy
) Marketing philosophy (d) Production philosophy
32. National Vritech Ltd. has grown in size. It was a market leader but with changes in business
environment and with the entry of MNCs, its market share is declining. To cope up with
the situation CEO starts delegating some of his authority to the General Manager, who also
felt himself overburdened and with the approval of CEO disperses some of his authority to
various levels throughout the organisation.
Identify the concept of management discussed above.
(a) Delegation (b) Organising
(c) Decentralisation (d) Centralisation
33. Mr Shyam Sagar is working as the manager of 'Sagar Foods Ltd.". The general goal of establishing
his company was to become the leader of 'Food Industry'. Mr Sagar determined the activities
and plans for the realisation of the general goal. In the plans themselves he determined the
specific goals also. He knew it very well that the planning done by him was of no significance if
he failed to contribute to the realisation of pre-determined organisational objectives.
This was the very reason that he did everything with full alertness.
Identify the feature of planning described in the above discussion.
(a) Planning focuses on achieving objectives.
(b) Planning is a prmary lunction of management.
(c) Planning is pervasive.
(d) Planning is continuous.

168| Business Studies-Xll: Term-1

 hoka handloom Indust lndustries is
company specialy manufactures
a

dhidhari isthe production manager in the

company.
bed-covers/bed-sheets
His design team
prints for
bed-covers in bright colours on silk. Although they looked developed
some
de the product
made product too.
too expensive for the very impressive,
average customer. Praising their
the e
use
o silk
of
sted that they keep the silk bed-cOvers for special occasions effort.
Mr Ashok
like Diwali and
Christmas
and offer the bed-covers on a regular basis.
the main function of management to which is the above case related.
Nam

(a) Planning (6) Organising

()Directing
d) Controlling
fore buying a thing a customer analyses its cost and the satisfaction that he is to get from i
He
h y the thing only when he feels that its satisfaction will be more than its cost. Seller
is to make the thing while keeping in mind this tendency of the buyer. A seller, who does
nat Day heed to the importance that the buyer gives to the product, certainly lags behind in
competition.

Which feature of marketing has been highlighted in the above paragraph?

(a) Customer value (b) Need and want
c) Creating a
market offering (d) Exchange mechanism
36. Super Fine Rice Ltd. has the largest share of 55% in the market. The company's policy is to sell
only for cash. In 2015, for the first time company's number one position in the industry has
been threatened because other companies started selling rice on credit also. But the managers
of Super Fine Rice Ltd. continued to rely on it's previously tried and tested successful plans
which didn't work because the environment is not static. This led to decline in sales of Super
Fine Rice Ltd.
The above situation is indicating two 'limitations of planning' which led to decline in its sales.
Identify one of them.
(a) Planning creates rigidity 6) Planning reduces creativity
(d) Planning does not guarantee success
c) Planning involves huge costs
37. Once the 'Sharda Club, Delhi' organised 'Health Care Week for its members. It had a very
their health
positive effect on its members. Now the members had become more careful about
than earlier. Not only this, the members also acquainted the people outside the club and

take advantage out of it. The changing attitude of the people towards health was visible in
the market also. Now a great demand for sugar free products, fat free cooking oil and diet
coke rose up in the market. The manufacturers had to immediately increase their production.
the market first of all and
Sharda Food Producers, Delhi' brought/launched these products in
earned a great profit.
described above
'feature of the business environment' does the
event
Which particular
acquaint us with?
(a) Dynamic Nature (b) Inter-relatedness
(d) Specific and General Forces
(c) Totality of External Forces
business into five departments. Now the
38. 'Nagia Steel Pvt. Ltd.' has divided the whole of its
to be done
the employees what different jobs are
Company's General Manager is telling all
the nature of job and the person's ability
by them. While giving the jobs to the employees, who will report to
taken into account. This also has been pre-determined
1S
especially being
and who is subordinate.
whom. This makes it clear who is superior/senior
here.
Identify the function of management highlighted
(ay Organising (b) Planning
) Controlling (d) Stalling

Practice Papers |169

 39 Mrs Madhvi Bhire is working as a manager in "Taarik and Company. She is involved in.
a
problem related to a particular product. She is unable to decide whether she should produeo
that produet in her own ecompany or she should buy it from the market. She studied both the
the
options deeply with the help of specialists. In order to maintain the company's impression on
the minds of the customers, she decided to produce the product in the company itself. She is
hopeful of the complete success of this decision.
Identify the stage of the 'planning process' on which Mrs Madhvi reached the final decision.
(a) Evaluating alternative courses (b) Selecting an alternative

() (d) Follow-up action

Implementing the plan
40. The General Manager of 'Uttaranchal Wood Pvt. Ltd.' called a meeting of the Production
Manager and Sales Manager both of his company. He explained to them that both of these
departments are the base of the company's success. Therefore, it is very necessary for both
of them to work with coordination. Also, they were told that whatever decision they took for
their respective departments; which could affect others, they must give its information to
them immediately. They did the same. As a result of this, there never arose a situation in the
company, when the sales orders could not be complied with because of the shortage of goods.
Identify the characteristic of coordination in the paragraph given above.
(a) Coordination is a continuous process (b) Coordination ensures unity of action
(c) Coordination is a deliberate function (d) Coordination is an all pervasive function
41. In a factory, a product is manufactured, in a garment store a customer's need is satisfied
and in a hospital a patient is treated. Management translate their work in terms of goals
to be achieved and assigns the nmeans to achieve it. Identify the dimension of management
discussed here.
(a) Management of operations (b) Management of people
(c) Management of work (d) None of these above
42. A sales person Mr Ram of Gupta & Gupta Sales Ltd. is asked to clinch a deal with a buyer and
is allowed to give 8% discount by the marketing manager. But finance department tells him
not to offer more than 5% discount.
Which principle of management is violated here?
(a) Unity of direction (b) Centralisation and decentralisation
(c) Division of work (d) Unity of command
43. For the following two statements choose the correct option.
Statement I: Marketing is not such an activity as is done post production.
Statement I: For publicity, the manufacturer has not to incur any expenditure
from the options given below:
Choose the correct option
(a) Statement I is correct and II is wrong (6) Statement II is correct and I is wrong
(d) Both the statements are incorrect
(c) Both the statements are correct
44. Miss Bindu is working as the Production Manager in a company. She divided the work among
her subordinates in accordance with their interest and ability. Not only this, she even gave

relating their work. At the end of the first month

them all the authorities to take decisions
to
of the year, it was found that Mr Raj Sabharwal had not achieved his target. He was lagging
his
far behind his target. Miss Bindu asked
him to give the reason within two days why
performance was low.
conversation between Miss Bindu and Mr Raj referred
With which concept of management the
to in the above paragraph
is related? Identify it.

(a) Authority (b) Accountability

(d) None of these
)Responsibility

Business Studies-XIl: Term-1

170|
 Gargand Mr Ram Kumar Goyal:are worki
Kumar

Limited' and Kumar and Kumar king

Raj
Mr as
Gener
Gupta and Gupta
Limited'. Mr Managers espectively
45.
in
close eye
business
on environment. He pays a
tion to great and Garg's nature is t keep a
in the market and prepares himse well in time. On the other small
hand,
changes taking place
is indifferent to the business
environment.|He thinks that he will Mr
Goyal, by nature,
not go after
but make it follow him. Within a few the business
days it was learnt that
environment

had become the leader

leade of the other
Limite
Gupta and Gupt:
companies of similar type, whereas
Kumar
Limite was
becoming solete in the market. 'Kumar and
dentify the point of importance of business environment' which is referred to
stated above. to by the
the incident
ia) lt helps in assisting in
planning and policy formulation.
(b) lt helps in improving performance.
)It helps in tapping useful resources.
d) It helps in coping with rapid changes.

G Mr Sanjiv Gupta decided to double the production of his

Lis decision into reality. Here, he is also company. Now he is going to translate
workers will be required to achieve the
thinking how many
additional/extra machines and
realised only after the
production target. His dream will be
possible to be
arrangement for these extra sources is done.
Which stage Planning Process' is
of
being completed by Mr Gupta in the above event?
(a) Evaluating alternative course
6) Selecting an alternative
c) Implementing the plan
(d) Follow-up action
47. In the end of year 2019, there started a
Pandemic by the name of Corona
world. In the year 2020, it took the whole world in
its fold. In India, also its
spreading in the
Due to the lockdown, effect was seen.
continuing for months together, India's economy got ruined. For the
improvement of economy, the government took a number of steps. One of the
major
was to reduce the interest rate
heavily on long-term loan. Due to the heavy reduction insteps the
interest rate, some people started
constructing
vehicles like cars, etc. In both these sectors one
houses and some of them started
buying the
noticed a great increase in demand. As a
result, the economy, which was getting ruined,
got some help to come up.
What do you learn from the above event about the
environment related to the reduction in interest rate?
important point of general business
(a) Economic Environment (b) Social Environment
c) Technological Environment (d) Political Environment
48. Assertion (A): Standardisation reduces the need for inspection, testing and evaluation of the
products.
Reason (R): Standardisation ensures the buyers that goods conform to the predetermined
standards of quality, price, packaging, etc.
(a) Both (A) and (R) are true, and R is the correct explanation of A.
(b) Both (A) and (R) are true, and R is not the correct explanation ot A.
) (A) is true but (R) is false.
(d) (A) is false but (R) is true.

Practice Papers |171

 SECTION-C

(49-54) based on it.

Kead the text given below and answer the questions
an Aloevera Farm, Ashok
l e r acquiring the n e c e s s a r y knowledge
and skills on starting hok wanted
worldwide.
to be the leading maufacturer of Aloevera products
lter gathering and analyzing information and doing correct marketing planning, he
now that the consumers compare the valueof a product to the
value of money they are re ired
to pay. The consunmers will be ready to buy a product when they perceived that the value df
f the

product is at least equal to the value of moneythey would pay. Since he was enterina :into
which
a new market, he felt that he may not be able to cover all costs. He knew that in the long r n
the
business will not be able to survive unless all costs are covered in addition to a minimum prof.
He also thought that competitors' prices and their anticipated reactions must also be considere
profit
for this.
He examined the quality and features of the products of the competitors and the anticipater
reactions of the consumers. Considering the same he decided to add some unique features to the
packaging and also decided to provide free home delivery of the products.
In the above paragraph factors about the 'Fixation of Price of any Product' are highlighted.
Match the factors of determining price with their relevant statements:
49. The consumers will be ready to buy a product when they perceived that the value of the
product is at least equal to the value of money which they would pay."
(a) Pricing objectives (6) Utility and demand
() Extent of competition in the market (d) Marketing method used

50. "He knew that in the long run the business will not be able to survive unless ali costs are
covered in addition to a minimum profit."
(a) Pricing objectives (6) Utility and demand
(c) Extent of competition in the market (d) Marketing method used
51. "He also thought that competitors' prices and their anticipated reactions must also be
considered for this."
(a) Pricing objectives b) Utility and demand
(c) Extent of competition in the market d) Marketing method used
52. Considering the same he decided to add some unique features to the packaging and also
decided to provide free home delivery of the products."
(a) Pricing objectives (6) Utility and demand
(c) Extent of competition in the market (d) Marketing method used
53. Identify the factor about the fixation of price of any product' which is not highlighted here:
(a) Pricing objectives (b) Utility and demand
(c) Government and legal regulations d) Marketing method used
54. Statement I: The consumers compare the value of a product to the value of money they are
required to pay.
Statement II: At the time of fixing the price of a product, there is no need to consider the
competitors' prices.
Both the above statements are:
(a) True
(6) False
(c) Statement () is true and statement (11) is false
(d) Statement () is false and statement (11) is true.

172| Business Studies-XI: Term-1

 ABC LId. instructs a salesman to go slow in
of
55. The produeti
ction manager
selling the product,.
oine manager is insisting on fast selling to reach the target.
whereas the mark
Which orinei
is being violate in this case?
nciple
m a n a g e m e n t

of comnand
(b) Unity of direction
mv of
(a) (d) Order
(Equity
Sarika Motors Limited is a famous vehicle manutacturing company. The Research and
Developmer Department of the company is very strong. The manager of the Department,
Mr Gopal Rai, keeps a sharp eye on the isiness environment. On the basis of the data iven
by the government he has concluded that the pollution level in the country is rising very fast
and that the vehicles running on petrol and diesel contribute a lot into it. Keeping this fact in
R a i developed such an engine as ran on air pressure. The company used this engine,
mind
rst of all, in cars, which proved to be completely successful. The cars were expensive, but
dhe company got full support from the market. From the government also, several concessions
in the taxes, power rate, etc. were available. The company earned a huge profit. Afterwards,
ceveral other companies also followed this technique, but no other company got as much fame
Motors'.
as was got by 'Sarika
Tdentify the point of 'importance of business environment' in the event described above?
(a) It helps the firm in identify1ng the threats and early warning signals.
(b) lt enables the firm in identifying opportunities and getting the lirst mover advantage.

(c)It helps in tapping useful resources.

(d) It helps in coping with rapid changes.

57. 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
he scheduled meeting in the
it with his team. On the basis of the gathered information,
a

following week to find innovative ways to achieve the objectives.

which have been followed by Saurabh that are related to the
one out of the two steps,
Identify
process of one of the functions of management.
(a) Follow up action (b) Selecting an alternative

c)Developing Premises (d) Evaluating alternative courses

chain of authority and communication that

have
58. According to Fayol, "Organisations should a

runs from top to bottom and should be followed by managers and the subordinates." According
of formal communication.
to this chain should not be violated in the normal course
Fayol,
Match the statement given by Fayol with his principle of management.

(a) Equity (b) Unity of command

(c) Order
(d) Scalar chain

59. Riya Health Care Limited', established with the objective of taking c a r e of the people's health,
established in its field. There
the first company of this type
was a company. This was
new

was something good for

the company. But the company's
being no competition in the market established in that field.
business was about to pick up, when several competing companies got
two years had
of the company came to an end. Hardly
Consequently, the comfortable position
was established, when
there occurred a big change in the priorities
gone by since the company instead
towards the local health promoting products
of the customers. Now they got tempted
had to face great difficulties to keep itself
of the products. In this way, the company
company's
established in the market.

Practice Papers |173

 does the above
event acquaint us with?
environment
Which feature of business (b) Inter-rclatedness
(a) Dyname Nature (d) Specific and General Forces
)lotalit of Extenal Forces in the 'Sharda Shopping Mall', Hei..
the sales manager eis preparing
60. Sanjivan Madan is working as the help forecast as the base of
of
sales for his department. He
is taking the forn
a plan can be prepared by learnin of
He is of the view that agood plan
his sales plan. the medium of forecast. Thout the
and conditions through
possibilities of future events
ng
as the production plan and other plans of hui
prepared by Sanjivan is very important are
prepared o n this very basis.
in above event.
Identify the feature of planning
(a) Planning is continuous. b) Planning is futuristic.
(d) Planning is pervasive
)Planning involves decision making.

174| Business Studies-XII: Term-1