Business Studies

Class XII

I Pre-Board Examination 2020-2021

MM: 80 Time :3hrs

General Instructions
1. This question paper contains 34 questions.

2. Marks are indicated against each question.

3. Answers should be brief and to the point.

4. Answers to the questions carrying 3 marks may be from 50 to 75 words.

5. Answers to questions carrying 4 marks may be about 150 words.

6. Answers to questions carrying 6 marks may be about 200 words.

7. Attempt all the parts of the question together.

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1. Name the process which co-ordinates human efforts, assembles resources and integrates
both into a unified whole to be utilised for achieving specified objectives.
(a) Management
(b) Planning
(c) Organising
(d) Directing (1)

2. Which of the following is not a component of specific forces of business environment?

(a) Technological conditions
(b) Customers
(c) Employees
(d) Investors (1)

3.Tarang Enterprises Limited is planning to increase its sales by 30% in the next quarter.
Identify the feature of management being highlighted in the given statement.
(a) Management is all pervasive
(b) Management is a goal oriented process
(c) Management is a continuous process
(d) All of the above (1)
4. ‘Twinkle Stars’ is a well-known resort for organising parties, especially for children. However,
in 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 feature of business environment
which has influenced the business of ‘Twinkle Stars’ adversely.
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Uncertainty (1)

5. Jay is working as a marketing manager in a company has been given the task of selling
100000 units of a product at the cost of @100 per unit within 20 days. He is able to sell all the
units within the stipulated time, but had to sell last 1000 units at 20% discount in order to
complete the target. In such a situation, he will be considered to be
(a) An efficient manager
(b) An effective manager
(c) Both effective and efficient manager
(d) None of the above (1)

6. In order to boost and double India’s export of goods and services to over USD 1,000 billion by
2025, it is important to lower effective corporate tax rate, bring down cost of capital and simplify
regulatory and tax framework. Identify the related dimension of business environment.
(a) Social dimension and Legal dimension
(b) Technological dimension and Political dimension
(c) Political dimension and Social dimension
(d) Economic dimension and Legal dimension (1)

7.  ‘Yo Tummy’ began its business by offering the classic combo of hamburgers and fries. But
over time, their customers wanted healthier foods, so ‘Yo Tummy’ responded and began
offering healthy alternatives such as salads, fruits, wraps and oatmeal. If ‘Yo Tummy’ hadn’t
responded, they may have lost customers that wanted to eat healthier foods. The above case
highlights one of the points related to the importance of business environment and its
understanding by managers. Identify it.
(a) It helps in coping with rapid changes.
(b) It helps in improving performance.
(c) It helps the firm to identify threats and early warning signals.
(d) It enables the firm to identify opportunities and getting the first mover advantage. (1)

8. Which of the following statements is not relevant to the concept of “Management as an

inexact science”?
(a) The principles of management lack universal validity
(b) The principles of management lack universal applicability
(c) The principles of management have to be modified according to the given situation
(d) Management involves dealing with human behaviour and outcomes cannot be predicted with
utmost accuracy (1)
9. 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)

10. It is the process of ensuring that events confirm to plans.

(a) Planning
(b) Controlling
(c) Organising
(d) Directing (1)

11. As the span of management increases in an organisation, the number of levels of

management in the organisation
(a) Increases
(b) Decreases
(c) Remains unaffected
(d) None of the above

OR

 Identify the type of organisational structure which makes training of employees easier, as the
focus is only on a limited range of skills.
(a) Network structure
(b) Divisional structure
(c) Functional structure
(d) Matrix structure (1)

12. Harshit is planning a start up a venture for offering mobile pet care services at door step. He
has decided to charge ?1000 for heated hydrobath & blow dry of a pet and ?500 for shampoo
and conditioning. Identify the element of marketing mix which is not being described in the
above case.
(a) Product
(b) Place
(c) Price
(d) None of the above

OR

Guneet went to a shop and expressed her desire to buy a copper water bottle only of Prestige
company. Identify the component related to branding being described in the above case.
(a) Trademark
(b) Generic name
(c) Brand name
(d) Brand mark (1)

13. Which of the following statements is not true with regard to Call money?
(a) It is short-term finance repayable on demand.
(b) Its maturity period ranges from one day to fifteen days.
(c) There is a direct relationship between call rates and other short-term money market
instruments.
(d) It is used for inter-bank transactions. (1)

14. Raj Enterprises wishes to invest Rs.110000 in treasury bills. What is the maximum number
of treasury bills it can buy with this fund?
(a) 6
(b) 7
(c) 4
(d) 2 (1)

15. Which of the following is not a protective function of stock exchange?

(a) Prohibition of fraudulent and unfair trade practices.
(b) Controlling insider trading.
(c) Regulation of takeover bids by companies.
(d) Promotion of fair practices and code of conduct in securities market. (1)

16. A company can raise capital through the primary market in the form of
(a) Equity shares
(b) Preference shares
(c) Debentures
(d) All of the above (1)

17. According to the modern marketing concept, which of the following statements is true?
(a) It refers to the group of people who do not have the ability but willingness to buy a particular
product.
(b) It refers to only the set of people who have the purchasing power to buy a particular product.
(c) It refers to the set of actual and potential buyers for a product.
(d) It refers only to the people who show interest in a particular product. (1)

18. Which of the following is a feature of marketing process?

(a) Satisfying needs and wants of the consumers
(b) Creating a market offering
(c) Developing an exchange mechanism
(d) All of the above (1)

19. Which of the following can be marketed?

(a) Red Cross society persuading to donate blood.
(b) Kerala Tourism persuading people to visit Kerala for health tourism.
(c) Political parties persuading to vote for a particular candidate.
(d) All of the above (1)

20. In order to improve upon its competitive edge, Khushboo Limited has change 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 usage, the consumer doesn’t need to open the
cap of the bottle. Name the marketing function being explained in the given lines.
(a) Product designing and development
(b) Customer support services
(c) Promotion
(d) Physical distribution (1)

21. Mohit has retired as the director of a manufacturing company. At which level of management
was he working? Explain the different types of functions that are performed at this level. (3)

22. State any three reasons why training is beneficial for employees of an organisation. (3)

23. What should be done while ‘taking corrective actions’ in the process of controlling when
especially in the important areas, deviations go beyond the acceptable range?

OR

Why is actual performance compared with standards in the process of controlling? (3)

24. Nishant, the director of a garment company, is planning to manufacture bags for the
utilisation of waste material from one of his garment units. He has decided that this
manufacturing unit will be set-up in a rural area of Orissa where people have very few job
opportunities and labour is available at very low rates. He also thought of giving equal
opportunities to men and women. For this, he wanted four different heads for sales, account,
purchase and production. He gave an advertisement and shortlists ten candidates per post after
conducting different selection tests.

Identify and state the next three steps for choosing the best candidate out of the candidates
short-listed. (3)

25. Financial market plays an important role in the allocation of scarce resources in an
economy by performing various functions. Explain any four functions of financial market.

OR

‘To promote orderly and healthy growth of securities market and protection of investors, SEBI
was set up’. With reference to this statement, explain the objectives Of SEBI.  (4)

26. Huma is working in a company on a permanent basis. As per the job agreement, she had to
work for 8 hours a day and was free to work overtime. Huma worked overtime, due to which she
fell ill and had to take leave from her work. No one showed concern and enquired about her
health. She realised that she was fulfilling only some of her needs while some other needs still
remained to be fulfilled.

a) By quoting the lines from the above para, identify the needs of Huma which she is able to
fulfil.

b) Also explain two other needs of Huma followed by the above needs, which still remained to
be Satisfied. (4)

27.  ‘Supervision is not at all required in an organisation’. Do you agree? Give three reasons in
support of your answer.

OR

Directing is not required at all in management of organisation. Do you agree? Give three

reasons in support of your answer. (4)

28. Pranav is engaged in transport business. Identify the working capital requirements of Pranav
stating the reason in support of your answer. Pranav wants to expand and diversify his transport
business. Explain any two factors that will affect his fixed capital requirements. 

OR

Investment decision can be long-term and short-term. Explain long-term investment decision

and state any two factors affecting this decision. (4)

29. Determining the overall cost of capital and the financial risk of the enterprise depends upon
various factors. Explain any four factors. (4)

30. What precautions should a consumer take while buying a product or service? Explain.(4)

31. Explain how principles of management: (with an example)

a) help in optimum utilisation of resources and effective administration.

b) help the managers in meeting changing environment requirements.

c) provide useful insight into reality.

d) help in thoughtful decision-making. (6)

32.  Rahul, a worker, is given a target of assembling two computers per day. Due to his habit of
doing things differently, an idea struck him which would not only reduce the assembling time of
computers but would also reduce the cost of production of the computers. Rahul’s supervisor
instead of appreciating him, ordered him to complete the work as per the methods and
techniques decided earlier as nothing could be changed at that stage.
Identify one of the limitation of planning function of management the above para describes.
Name and explain other limitations. (6)

OR

Kanu is appointed as factory manager in a gel pen manufacturing company. He was given a
target of producing one lakh gel pens per month. He knew that ‘the essence of management is
to achieve desired results’ but he does not know ‘how to ensure that the work goes on
according to plans’.
Guide him by explaining the process so that he will be able to achieve the desired results.(6)

33.  ‘Delegation is the entrustment of responsibility and authority to another and the
creation of accountability for performance’. In the light of this statement, identify and explain the
essential elements of delegation. (6)

34. Identify and explain the promotional tool of marketing mix which plays a persuasive, service
and informative role and thereby link a business firm to its customers. Also explain by giving any
four reasons how this tool helps in increasing the sales of businessmen.

OR

’Money spent on advertisement is not a waste but an investment’. Do you agree

with this view? Give reasons in support of your answer. (6)

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