BHATNAGAR INTERNATIONAL SCHOOL

BHERA ENCLAVE PASCHIM VIHAR

Business Studies

Class-XII

Time: 3 Hours MM: 80

1. It is defined as the framework within which managerial and operating task are 1
performed.

A. Span of management B. Departmentalization

C. Organizational Structure D. none of the above.

2. Twinkle stars is a well-known resort for organizing parties, especially for 1

children. However in the past 6 months its popularity has reduced considerably as
a new resort with better ambience and facilities has opened within its vicinity. Name
the related business environment feature which has influenced the business of
Twinkle Stars.

A. Specific and general forces B. Dynamic nature

C. Relativity D. All the above.

3. Every organization whether it is business or non-business, has an obiligation to
1 fulfill. This refers to consistently creating economic value for various
constituents of society. Which objective of management is highlighted in aforesaid
statement:

A. Organisational objective C. Social Objective

B. Personal Objective D. None of these.

4. The restaurant industry alone is expected to contract by 25% to 40% as 1

customers remain skeptical about eating out due to safety concerns owing to
coronavirus pandemic. The above statement is concerned with ________ type of
business environment.

A. Social Environment B. Technological

C. Political Environment D. Legal Environment

5. The concept of __________ relates to cost benefit analysis and study the 1
relationship between inputs and outputs.
 A. Management B. Efficiency

C. Effectiveness D. Controlling

6. “The increase in the demand for many Ayurvedic medicines, Health 1

products and services in the past few months, is related to the need for building
immunity and an increased awareness for health care due to the spread of Corona
virus.” Identify the feature of business environment being described above.

A. Specific and general forces B. Interrelatedness

C. Relativity D. None of the above

7. __________- is considered a major element of the political environment: 1

A. The extent and nature of government intervention in business

B. planned outlay in public and private sectors
C. Expectations from the work force
D. Administrative order issued by government authorities.

8. The purchases, production and sales managers at Sharda Ltd, a firm 1

manufacturing readymade garments are generally at a conflict, as they have their
own objectives. Usually each thinks that only they are qualified to evaluate,
judge and decide on any matter, according to the their professional criteria. Name
the concept which will be required by the CEO Mr. Raman, to reconcile the
differences in approach interest or opinion in the organisation.

A. Coordination

B. Cooperation

C.Leadership

D. Management

9. An important project at AMB consultants is running behind schedule by a 1

month. This has upset their clients and might affect the reputation of the company in
the long run. No managerial action like assigning more workers, equipment or giving
overtime has been able to solve the problem. What managerial action may now be
taken by the company to avoid such a situation from arising in the future

A. Revise the schedule,

B. Assigning additional workers and equipment to the project,
 C. Get permission for further overtime work,
D. Both B&C.

10. Identify an important principle of management control which is based on 1 the belief
that if you try to control everything you may end up controlling nothing.

A. Management by control B. Control by exception

C. Critical point control D. (a)&(b)

11. Provides basis of management hierarchy as it 1

establishes superior subordinate relationships.

A. Delegation B. departmentalization

C. decentralization D. none of the above

OR

Identify the type of organization structure which makes training of employees

easier as the focus is on limited range of skills.

A. Network structure B. Divisional Structure

C. Functional structure D. Matrix structure

12. Match the concept of marketing in Column I with their respective definition 1
in Column II

COLUMN
COLUMN – I – II

a) Standardisation i. relates to maintaining high quality of the

product
ii
b) Warehousing Establishing uniformity and consistency in
the product
iii.
c) Product Creates time utiity
concept
1

A. i,ii,iii C. ii,i,iii
 B. ii,iii,i D. i,iii,ii

OR

In order to improve competitive edge , Khushboo limited has changed the

packaging of its hair care products. They are now available in a consumer
friendly design which has a nozzle attached to the lid so that at the time of the
usage the consumer doesn’t need to open the cap of the bottle. Identify the
marketing function being used
A. Standardisation C. Product Designing and development
B. Customer support service D. Gathering and analyzing market
information

Read the following text and answer question No.13-16 on the basis of the same:

ISQAA SOLAR limited is searching options to raise ₹20,000 crores from the
primary market for diversification and modernisation of existing projects. It hired
the services of a renowned financial consultancy firm, DHAN LAXMI PVT. LTD.
for suggesting options for the same. DHAN LAXMI PVT. LTD. suggested a list
of options to the Board of Directors of the company. It was decided that for the
immediate requirement of ₹1500 crores the company will give a privilege to
existing shareholders to subscribe to a new issue of shares according to the
terms and conditions of the company. ₹4500 crores would be raised by
allotment of securities to a consortium of financial institutions, instead of inviting
subscription from the public by making a direct appeal to investors to raise
capital. It was further decided to raise capital to the tune of ₹6000 crores
through an issuing house. All these options were accepted by the Board of
Directors. The Board further decided to raise ₹8,000 crores through the on-line
system of the stock exchange by entering into an agreement with the exchange.
1

Identify the method of floatation of new issues in the primary market, not taken
up by ISQAA SOLAR LTD.

A. Offer for sale B. Rights issue

C. E-IPO D. Offer through prospectus
13.

14. “₹4500 crores would be raised by allotment of securities to a consortium of 1

financial institutions, instead of inviting subscription from the public by making a
 direct appeal to investors to raise capital.’’ Identify the method of floatation of
new issues in the primary market being discussed above, which the company
has decided to use.

A. Offer for sale B. Private placement

C. Right Issue D. Offer through Prospectus

15. Identify the reason which has made the firm raise funds from the 1
institutional investors.

A. It helps to raise funds quickly B. It is not expensive

C. Both a & b D. None of the above.

16. Identify the reason which has made the firm raise funds from the 1
institutional investors.

A. It helps to raise funds quickly B. It is not expensive

C. Both a & b D. None of the above.

17. “Buy one get one free” is printed on the label of the package of a mosquito 1
repellant. State the labelling function being performed by this statement.

A. Helps in product promotion C. Helps in Grading

B. Giving information required by law. D. none of the above

18. _____________ refers to the set of firms and individuals that take title or 1 help
in the process of transferring the title of particular products or services as it moves
from the producer to the consumers.
A. Personal selling C. Channel of distribution
B. Place mix D. Marketer

19. When Reema had sent a servant to the market to buy a pack of chips, 1
She asked him to bring the yellow coloured packet of chips of a
Particular brand. Identify the function of packaging being described in
The above line
A. Describes the product and specify its content

B. Facilitates the use of product

C. Helps in product identification

 D. Provides protection to the product

20. Which of the following is not true with regard to district forum: 1

A. It consist of President and three other members, one of whom should be a

woman.

B. The members are appointed by district government

C. A complaint can be made in an appropriate district court when the

Value of goods and services along with compensation does nor exceed 10
laks

D. All of the above.

21. Das is the Managing Director of “Gamut Ltd.” manufacturing different varieties 3 of
cheese. He has an efficient team working under him consist of Rajat – the
Production Manager Vinay – the Marketing Manager and Aditya– the Finance
Manager .They understand and interpret the policies made by Das and ensure that
their Departments have adequate manpower assign them the necessary duties and
motivate them to achieve the desired objectives . State the level at which the team
is working. State two more functions other than those mentioned above that this
team may perform at the level they are working .

22. Explain the benefits of training to the organization. 3

OR

Differentiate between internal and external recruitment on any three basis

23. Controlling is an indispensable function of management. Without controlling 3

the best of plans can go awry “. Do you agree? Explain any two reasons in support of
your answer.

OR

Rudrakshi Ltd. is engaged in manufacturing high end luxury pens. The target
production is 700 units daily. The company had been successfully attaining this
target until three months ago. Over the last few month, it has been observed
that daily productions varies between 600-650 units. (i) Identify the function of
management, which has been highlighted in the above context.
(ii) List the steps involved in the process of the function identified above.
24. State any three functions of stock exchange. 3

OR

Explain treasury bill and call money as a money market instrument.

25. Vandana Public School had a vacancy of a Maths teacher. They were looking 4
for a smart and creative teacher having a drive for excellence. An
advertisement was given in all leading dailies. Since the response was huge,
the school examined all the application forms and rejected the candidates who
did not have the necessary qualifications. Thereafter, a test was conducted to
measure the existing skills of the candidates. After that it was followed by a
formal in-depth conversation with the Principal of the school and a panel of
Maths experts. From the above context;
a) Explain the steps that have been performed by Vandana Public School in
the process of identifying and choosing the best candidate.
b) Give the name and also the meaning of the test which was conducted by
the school.

26. Handsen is the CEO of Newcastle Enterprises, one of the world's most 4 successful
companies. His success stories have beenwell documented. He chooses highly
motivated and capable managers who can perform their tasks creatively and
adequately without his help. He allows the group members to work on their own
tasks and resolve issues themselves. He intervenes, but only when needed to
correct an unfavorable situation. He does not use power unless it is absolutely
essential. He even allows mistakes to happen for his people to learn from them. He
supports them and supplies them the required information to complete the assigned
task.
A. Identify the leadership style adopted by Handsen.
B. With the help of diagram, explain the other two leadership styles based on the
use of authority.

27. Kunal joined as a Shop Level Manager in the Production Department of a 4

Textile Company in the year 2005. Because of his good work he became the Deputy
Production Manager of the Company in the year 2010. He had Status and Prestige
and was well respected by all in the company. On 1st March 2019 He was Promoted
as the General Manager of the company. Kunal was very happy on His Promotion as
now he had become what he was capable of becoming. As a Good Manager Kunal
decided to Motivate his Subordinates after understanding the Need Hierarchy Theory
which is based on various assumptions. He realized that People’s Behaviour is
based on their needs and the Manager can influence the behaviour of his
Employees by satisfying their needs.
A. One of the Assumptions of Need Hierarchy Theory is stated in the above
paragraph. State the Other three Assumptions of this Theory.
 (b) State the Needs of Kunal which are being satisfied through Promotion.

OR

Three friends, Rajat, Raman and Ansh, after completing their MBA from a
reputed business school at Mumbai, were discussing about the type of
organisation they would like to join. Rajat was very clear that he would like to
take up a government job as it gives stability about the future income and work
which will help him to work with greater zeal. It will also provide him pension
when he will retire from his service. Raman wanted to work in a company, which
has appropriate skill development plans for its employees and helps the
employees to grow to higher levels in the organisation. In addition to this, the
company should also provide facilities like housing, medical aid, etc. Ansh said
that he would prefer to work in an organisation, which has the culture of
individual autonomy, is considerate to employees and provides the employees
with opportunity for personal growth and a meaningful work experience.

(a) Identify the various financial and non-financial incentives discussed by the
three friends in the above conversation.
(b) Explain two other non-financial incentives which were not discussed by any
one of them.

28. Explain any four factors that can affect the working capital requirement of a 4
company.

OR

Explain any four factors that affect the choice of capital structure of a company.

29. Shiv Ltd. is engaged in the business of export of garments. In the past, the 4
performance of the company had been upto the expectations. In line with the
latest technology, the company decided to upgrade its machinery. For this the
Finance Manager Dalmia estimated the amount of funds required and the
timings. This will help the company in linking the investment and the financial
decisions on a continuous basis. Dalmia therefore, began with the preparation
of a sales forecast for the next four years. He also collected the relevant data
about the profit estimates in the coming years. By doing this he wanted to be
sure about the availability of funds from the internal sources of the business.
For the remaining funds he is trying to find out alternative sources from
outside.
Identify the financial concept discussed in the above para. Also state the
importance of financial concept, so identified.

30. Explain the following rights of consumers provided by Consumer Protection 4

Act, 1986:-
 (a) Right to be heard

(b)Right to Consumer Education

31. Karan Nath took over 'D'north Motor Company' from his ailing father three 6
months ago. In the past, the company was not performing well. Karan was
determined to improve the company's performance. He observed that the
methods of production as well as selection of employees in the company were
not scientific. He believed that there was only one best method to maximise
efficiency. He also felt that once the method is developed, the workers of the
company should be trained to learn that' best method'. He asked the
Production Manager to develop the best method and carry out the necessary
training. The Production Manager developed this method using several
parameters right from deciding the sequence of operations, place for men,
machines and raw materials till the delivery of the product to the customers. This
method was implemented throughout the organisation. It helped in increasing the
output, improving the quality and reducing the cost and wastage.
Identify and explain the principles and the technique of scientific management
followed by the Production Manager in the above case.

32. Do you think why planning sometimes fail despite the best efforts of the 6
managers ? Justify your answer with the help of suitable example.

OR

“If the project is important then more alternatives should be generated and
thoroughly discussed amongst the members of the organisation.” Identify and
explain the step in the process of planning being discussed above. Also explain
the remaining steps which will have to be carried out to complete the process.

33. Kavita Ghai was the managing director of a restaurant in Lucknow called 6
healthy kitchen. The restaurant was doing well and the volume of work started
increasing slowly and steadily. Kavita Ghai was not able to manage all the work on
her own. The increasing magnitude of work made it impractical for her to handle it all
by herself. Moreover her objective is to open more branches of this restaurant at
different places. She appointed Nikhil Gupta, as a general manager of healthy
kitchen Lucknow and gave him right to command his subordinates and to take
actions within the scope of his position. For smooth running of the restaurant she
also gave him authority to hire and train the staff as per the requirements. Kavita
Ghai was satisfied with the work of Nikhil gupta and was able to open other branches
of the restaurant in Agra and kanpur also.
(a) Identify the concept followed by Kavita Ghai which helped her to open the new
branches of the restaurant.
(b) Also, explain briefly the points of importance of the concept identified in (a)
above.
34. R&T Reality, the property development arm of the construction and 6
engineering giant R&T in a recent report to the media shared that it is betting
on bigger and better projects providing greater benefits to the customers, lower prices
and faster execution to boost its growth. The spokesperson of the company informed
the media that besides the innovative features, quality and brand, the fair pricing
followed by the company is also a hit with the buyers.

He said that the company is also focusing on accurate, speedy and timely
delivery. Proper communication with the market was being maintained through
advertising. Even dealers were to be offered incentives to boost the sales. The above
para describes the combination of variables used by R&T Reality to prepare its
market offering. Identify and explain the variables.

OR

'Coconut Joy Ltd.' are the manufacturer of vegetarian frozen dessert food
products made with coconut milk, agave syrup and other certified ingredients. The
founders of the company Lovely and Lalita originally developed this treat to meet their
own needs but found that their friends and families around were also keen to use the
products. It was not only the vegetarians, but also those who could not get enough
environment friendly sustainable food, that appreciated the product.
It did not take long for Lovely and Lalita to recognise the potential of their little
venture. In the beginning they started from their home with the product being
sold through local family parties that enable guests to personally meet the
owner. This helped to establish strong connections with the prospective
buyers and the company could put the product on shelves of natural food
store. The company used all marketing activities to grow and expand. The
company began sponsoring booths at festivals, drawing attention to its newly
created vegetarian products. It also disseminated relevant information to
media about its products and the people who helped in building the company's
reputation. Lovely and Lalita were invited for an interview with one of the
leading TV channels in which they talked about their environment friendly
vegetarian products.
(a) Identify and explain the communication tool used by 'Coconut Joy Ltd.'.
(b) Briefly explain the role of the tool identified in (a) above.