SET-B

KENDRIYA VIDYALAYA SANGATHAN REGIONAL OFFICE BHOPAL

FIRST PRE-BOARD EXAMINATION 2020-21
Subject- BUSINESS STUDIES
Class- XII
MM – 80 TIME: 3 HOURS

General instructions:
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answer 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 the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.
7. Attempt all parts of the questions together.

Q1 Decision making authority is pushed down the chain of command at all the levels of 1
the organisation. Decision making authority is shared with lower levels and is
consequently placed nearest to the points of action. .
a. Coordination b. Departmentalisation
c. Decentralisation d. Delegation of authority

Q2 Covid 19 has exposed the people to various risks and increased the awareness for hygiene 1
and sanitization, this has lead to an increase in the demand for many new products like
sanitizer liquids, sanitizer sprays, masks, hand wash, temperature sensing machines . All
these products have in turn changed peoples lifestyles like hygiene precautions, dressing
habits , eating habits
which feature of the business environment is being highlighted in the above statement?
a. Specific and general forces b. Dynamic nature
c. Relativity d. Interrelatedness

Q3 “A manager applies his acquired knowledge in a personalized and skillful manner in the light 1
of the realities of a given situation. He is involved in the activities of the organisation, studies
critical situations and formulates his own theories for use in a given situation.”
Identify the nature of management from the statement being discussed above

a. Management as science b. Management as art

c. Management as profession d. Management is neither science nor art nor
profession

Q4 “This year when the children could not reach the schools, the schools reached their 1
students. And it became common to see classes being conducted online ,using different
platforms like Whatsapp, Zoom, cisco Webex, Google meet, Jio meet and apps like diksha etc
to reach out to the students and provide them uninterrupted education in the comforts of
their home “
Name the dimension of the business environment highlighted by this statement

a. Social environment b. Technological

c. Political environment d. Legal environment
Q5 In which two functions of management do managers at the top level spend more time than 1
managers at lower level of the organisation
a. Planning and controlling b. Planning & organising
c. Directing & staffing d. Controlling & staffing

Q6 Demand for reservations in jobs for minorities ample of key component of general 1
environment of business. Name the component.

Q7 “Enterprises are facing an increasingly dynamic environment like turbulent market 1

conditions, less brand loyalty, more demanding customers, rapid changes in technology and
global competition. To cope with these managers must understand ,examine the
environment and develop suitable courses of action”
Identify the importance of business environment highlighted in the above statement

a. Helps in improving performance

b. Helps in coping with rapid changes
c. Helps in assisting in planning and policy formation
d. Helps in tapping useful resources

Q8 “In DHANDA & COOL beverages pvt limited the purchase production sales departments work 1
in complete coordination with each other, so that purchase of raw materials takes place
according to production requirements & production takes place according to demand in the
market “
State the feature of coordination highlighted in the above
a. Coordination ensures unity of action
b. Coordination is a deliberate function
c. Coordination is a continuous process
d. Coordination is an all-pervasive function

Q9 Now a days closed circuit television (cctv) arecommonly used in organisations as a means to 1
control on wrong behaviour and to prevent theft etc.
which point of importance of control does this illustrate
a. Accomplishing organisational goals
b. Making efficient use of resources
c. Improving employee motivation
d. Ensuring order and discipline

Q 10 Identify an important principle of management control in which is based on the belief that 1
“an effort to control everything results in controlling nothing “
a. Management by control b. Management by exception
c. Critical point control d. (a)&(b)

Q 11 Responsibility is the obligation of a subordinate to perform the assigned duty. 1

Or
Himalaya limited is engaged in manufacturing of washing machines the target of the
organisation is to manufacture 500 washing machines per day. Due to different departments
 there is an occupational specialization in the organization which promotes efficiency of
employees. There is no duplication of effort in such type of organisation structure
Identify the type of organisation structure described above
a. Functional structure b. Divisional structure
c. Informal organization d. None of the above

Q 12 Match the following functions of marketing in column i with column ii 1

Column – i Column – ii
A) Labelling I) designing and developing a wrapper or container for the product
B) Grading Ii) designing and developing a label to be put on the package for the
product
C) Packaging Iii) classifying products into different groups
a. A= i B=ii C= iii b. A=ii B=i C=iii
b. A=ii B=iii C=i d. A=iii B=ii C=i
or
Apart from products some thing else can also be marketed
eg “visit agra – city of love” , “ Padharo mhare desh- visit rajasthan”
what is being marketed here
a. Service b. Idea
c. Person d. Place

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

Rajats grandfather was a prudent person with the sharp financial mind. During his lifetime
he invested his savings of wisely in purchasing shares of various new start up companies
for rupees 5 lakh by E- IPO , he also diversified his portfolio by purchasing shares of various
reputed blue chip companies from stock exchange for about 10 lakh rupees
After his death Rajat inherited bundles of shares certificates from his grandfather as a part
of legacy.
Rajat wanted to start a small company for which he needed 4 lakh rupees to cover the
initial expenses for issue of shares etc
So he tried to sell some of the shares in stock exchange, where he was told to convert the
paper shares into electronic form and open an account with an organisation called the
depository for holding and transferring securities
Rajat was also advised to approach a registered broker and enter into a Broker Client
Agreement with him before placing an order to sell or buy securities.
Rajat was doubtful regarding brokers as they might cheat him

Q 13 Rajat was doubtful regarding brokers as they might cheat him “ 1

Name the function of SEBI which helps in saving people like Rajat from frauds like misleading
statements, price rigging, insider trading and makes a code of conduct for fair practices
a. Protective function b. Regulatory function
c. Developmental function d. Growth funcstion

Q 14 “Rajat tried to sell some of the shares in stock exchange, where he was told to convert the 1
paper shares into electronic form”
the process of conversion of physical shares into an electronic form is called as
a. Offer for sale b. Rematerialization
c. Dematerialization d. Liquidation
Q 15 ”He also diversified his portfolio by purchasing shares of various reputed blue chip 1
companies from stock exchange for about 10 lakh rupees “
Identify the type of capital market being discussed above which was used by Rajats
grandfather to purchase shares
a. Primary market b. Secondary market
c. Money market d. None of the above

Q16 “Open an account with an organisation called the depository for holding and transferring 1
securities “
Identify the type/name of account being discussed above, which Rajat has to use for
trading in securities and holding them in e form

a. Demat account b. Trading account

c. Selling account d. Share account

Read the following text and answer question No.17-20 on the basis of the same:

Soundarya a herbal soap was made by small shopkeeper in his small workshop garage in
Gwalior. It was a quick selling product trusted for its high quality in locals of Gwalior and
people around . Over the years the business expanded and Soundarya became
synonymous with high quality best price beauty and feminity product with perfect skin
care for all age groups . Due to the duplicate products Soundarya gots its name registered
and legally protected.

The brand ‘Soundarya’ grew over the years and with increasing demand they diversified
themselves into Soundarya shampoo, Soundarya face cream and other beauty products,
with competitive prices and best quality.
A strong distribution network help them in reaching various distributors all over India
covering outlets in rural and urban sector both.
For many years they survived the market competition with least advertising but now they
have gradually decided to hire up professional advertising agency for promotion of their
products and image building. They have also set up a 24 x7 helpline for consumers

They have created a presence for themselves in markets abroad with the help of their
website and online selling
They also decided to contribute for various cultural social events and maintenance of
public amenities like parks toilets etc & donating soaps to schools in rural areas to increase
hygiene as a part of their social responsibility and creating a favourable public opinion

Q 17 “The brand Soundarya grew over the years and with increasing demand they diversified 1
themselves into Soundarya shampoo, saundarya face cream and other beauty products.”
With reference to the given text ,The name Soundarya is a_______________
a. Brand b. Trademark c. Trait mark d. Brand mark

Q 18 “They also decided to contribute for various cultural social events and maintain public 1
amenities like parks toilets etc donating soaps to schools in rural areas to increase hygiene
as a part of their social responsibility and creating a favourable public opinion “
Identify the element of marketing mix being discussed in the above decision
a. Product b. Price c. Place d. Promotion
Q 19 “ It was a quick selling trusted product for its high quality in locals of Gwalior and people 1
around . Over the years the business expanded and Soundarya became synonymous with
high quality & best price beauty and feminity product with perfect skin care for all age
groups “
The marketing philosophy highlighted in the above statement is
a. The product concept b. The production concept c. The selling concept
d. The marketing concept
Q 20 “A strong distribution network help them in reaching various distributors all over India 1
covering outlets in rural and urban sector both. “
Identify the function of marketing being discussed in the above statement
a. Branding b. packaging c. Physical distribution d. promotion

Q 21 Name the level of management which is a team consisting of managers from different 3
functional levels, heading finance, marketing etc. For example chief finance officer, vice
president , president
state any two functions of this level of management .

Q 22 Explain ‘Promotion ’ and ‘Management Consultants’ as sources of Recruitment and classify 3

them as Internal or External sources of Recruitment

Q 23 “Controlling is an indispensable function of management. Without controlling the best of 3

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

Or
“Precise quantitative or qualitative standards for any task should be set carefully in any
organisation”
Identify the step in the process of the function of management being discussed above and
explain the next two steps followed by the same in the process.

Q 24 Explain in brief the Trading And Settlement Procedure on a Stock Exchange 3

Or
Differentiate between Primary Market and Secondary Market

Q 25 Tamani limited is setting up a new plant in India for manufacturing of two wheelers with 4
high end features
India has a highly competitive and growing market for two wheelers. 125 cc two wheelers
capture a major part of the two wheelers market segment and many companies are offering
a two wheeler with these specifications.

Tamani limited is planning to capture about 40% of the market share of two wheelers in
india and also export to the tune of at least rs 5 million in about two years of its planned
operations.
To achieve these targets it requires a highly trained and motivated workforce. You have
been appointed by the company to advise in this matter. You have advised the company to
go in for campus recruitment from engineering colleges for technical posts and advertise in
the local newspaper for other commercial positions .
 Name and explain the next two steps which follow the above step, in the process of the
function of management being discussed above.

Q 26 Pramod is a supervisor at ‘Shyam Breads And Biscuits Factory’. The factory produces 20,000 4
packets of bread and biscuits every day. As a supervisor Pramod ensures that work goes on
smoothly and there is no interruption in production. He is a good leader who gives orders
only after consulting his subordinates, working out the policies with the acceptance of the
group.
But for the past few months he has observed egoistic clashes between workers on petty
decisions and the work has suffered due to it .
So he has decided to change his leadership style, and do all decision making without
consulting his subordinates and keep full authority with himself.
Identify and explain the leadership style first used by pramod and identify the style later
adopted by him .

Q 27 ‘Infosys a software company in India has offered its shares at a price lower than the market 4
price to its employees, to create a feeling of ownership and to motivate them.’
Explain in brief any 4 other financial incentives which the company can provide on individual
or group basis

Or
Identify the Maslows hierarchy needs highlighted in the following statements
a. Autonomy, status ,prestige in the society help to satisfy this need
b. Informal groups are often formed to satisfy this need
c. It refers to the drive to become what one is capable of becoming
d. Job security, stability of income , pension plans provide a feeling of physical and
emotional security

Q 28 Explain any four factors that can affect the Dividend decisions of a company. 4
or
Explain any four factors that affect the choice of capital structure of a company.

Q 29 DHS Brewery and Distillery pvt ltd were the manufacturers of liquor. After the outbreak of 4
the global pandemic of covid-19 government imposed lockdown and all liquor shops were
closed .
Observing the market trend and demand the company wants to manufacture sanitizers in
the existing plant as the basic raw material for sanitizer ie alcohol , pet bottles were
available in bulk with the company, only few other materials were needed .

Suggest how the decisions related to production cycle, availability of raw materials can help
DHS in ensuring a low investment in working capital requirements.

Q 30 Examine the remedies available to the consumers under the consumer protection act, 1986. 4

Q 31 Explain the techniques of scientific management given by f.w.taylor. 6

1. Differential piece wage system
2. Functional foremanship
 3. Standardisation and simplification of work

Q 32 ”Planning is an activity which enables a manager to look ahead and anticipate changes. By 6
deciding in advance the tasks to be performed”
Do you agree? Explain any four reasons in support of your answer.

Or

“Every organization must have certain objectives. Objectives may be set for the entire
organisation and each department or unit within the organisation. Objectives or goals specify
what the organization wants to achieve. It could mean an increase in sales by 20% which
could be objective of the entire 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.

Q 33 Priyanka works as a corporate event coordinator in an event management company. She 6

has been made an overall in charge for organizing a textile exhibition for one of the clients of
the company. For ensuring that the exhibition takes place successfully, she Identifies the
various activities involved and divides the whole work into various task groups like
marketing committee, decoration committee and reception committee.
In order to facilitate coordination within and among committees, she appoints a supervisor
for each group. Each member in the group is asked to report to their respective supervisor
and all the supervisors are expected to work as per Priyankas orders.
In context of the above case:
1. Identify the function of management being performed by Priyanka.
2. Describe briefly the various steps involved in the performance of the function of
management as identified in part (1) of the question.

Q 34 ‘Advertising’ And ‘Personal Selling’ both are communication tools used by the marketers to 6
promote their products. Yet they differ in their approach. Differentiate between the two by
giving any six points.

Or
Describe the factors affecting the price determination of a product ( any six)