JMS Commerce Classes

Sikandrabad. (U.P.)

JMS SURE SHOT SUCCESS SERIES REVISION PRACTICE PAPER 01

Class 12 - Business Studies
Time Allowed: 2 hours and 30 minutes Maximum Marks: 80

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 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.

1. The Production Manager of NP Ltd. Aamra is very popular among his subordinates, He believes in application [1]
of scientific principles of management to his organisation to increase productivity. Moreover, he applies them in
a personalised and a skilful manner in the light of the realities of a given situation. Being involved in the
activities of the organisation, he studies critical situation and formulates his own theories for a given situation.
The nature of management discussed in the above case is:

a) Management as both an Art and a Science b) Management as an Inexact Science

c) Management as a Science d) Management as an Art

2. Treasury bill is issued by: [1]
i. development of the financial institution
ii. commercial bank
iii. selected individuals
iv. reserve bank of India

a) iii and iv b) only iv

c) ii and iii d) i and ii

3. The purpose of planning is to meet future events effectively to the best advantage of an organisation. This [1]
statement highlights which of the following features of planning?

a) Planning is futuristic. b) Planning focuses on achieving objectives.

c) Planning involves decision-making. d) Planning is the primary function of

management.
4. What is the meaning of the management of working capital? [1]
A. To maintain the continuity of a sufficient amount of working capital.
B. To make cash available in the large amount.

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 C. To keep the working capital at the minimum level.
D. To keep the working capital at the maximum level.

a) Only D b) Only A

c) Only C d) Only B
5. Setting a standard time, say, 6 hours to perform a task is an example of ________. [1]

a) Deviation analysis b) Qualitative Standards

c) Qualitative and Quantitative Standards d) Quantitative Standards

6. The following pictorial presentation highlights violation of one of the principles of management. [1]

Identify the principle not followed in the given picture.

a) Cooperation not individualism b) Subordination of individual interest to

general interest

c) Initiative d) Equity
7. In the ________ a securities account can be opened, all shares can be deposited in it. These can be [1]
withdrawn/sold at any time and instruction to deliver or receive shares on behalf of the investor can be given.

a) Stock exchange b) Primary market

c) Bank d) Depository
8. It becomes necessary for all organisations to address career related issues and promotional avenues for their [1]
employees. Managers must encourage employees to grow and realise their full potential.
Which of the following concept is highlighted above?

a) Promotion and career planning b) Directing

c) Training and development d) Motivation

9. Which of the following statement is true? [1]
a. A higher tax rate makes debt relatively costlier.
b. A company cannot use debt beyond a point.
c. For maximisation of shareholder’s wealth, debt can be used up to any level if ROI is greater than cost of
debt.
d. During a bearish phase, equity shares are more easily sold even at a higher price.

a) option (c) b) option (a)

c) option (b) d) option (d)

10. Assertion (A): Delegation leads to the development of the employees of lower levels. [1]
Reason (R): It provides a chance to the employees to handle the complexities of a higher position.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

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 c) A is true but R is false. d) A is false but R is true.
11. Primary and secondary markets: [1]

a) Control each other b) Compete with each other

c) Function independently d) Complement each other

12. Rohan Ltd. an automobile manufacturer was diversifying into manufacturing two-wheelers. They knew that [1]
India is on a growth path and a new breed of consumer is eager for a first vehicle. The market responded very
well to the new product. The company did not have to allow credit, as it had advance orders from four to six
months with deposits paid. Also, due to efficiency in managing their operations as soon as a vehicle was off the
assembly line, it was out to the dealers. Give the reason discussed above which helped the firm in managing its
working capital efficiently.

a) Operating Efficiency b) Credit Allowed

c) Both credit availed and operating efficiency d) Credit Availed

13. Statement I: National Commission has a jurisdiction to entertain complaints where value of goods or services [1]
paid as consideration exceeds ten crores of rupees.
Statement II: If any of the parties are not satisfied by the order of National Commission can appeal against such
order to the Supreme Court of India within a period of thirty days of such order.

a) Both the Statements I and II are correct. b) Statement II is correct and Statement I is not
correct.

c) Both the Statements I and II are not correct. d) Statement I is correct and Statement II is not
correct.
14. Based on National Common Mobility Card standards, India’s first indigenously developed inter-operable [1]
transport card was launched in March 2019 to make travel across various modes convenient.
Identify the type of plan being described in the above lines.

a) Method b) Strategy

c) Rule d) Programme
15. When the stock market is bullish, a company must go for which of the following? [1]

a) Equal mix of debt and equity b) More debt

c) More equity d) Less equity

16. Statement I: Needs are basic to human beings and do not pertain to a particular product. [1]
Statement II: Wants are culturally defined objects that are potential satisfiers of needs.

a) Statement II is correct and Statement I is not b) Both the Statements I and II are not correct.
correct.

c) Statement I is correct and Statement II is not d) Both the Statements I and II are correct.
correct.
17. It is not always true that just because a plan has worked before it will work again. Besides, there are so [1]
many other unknown factors to be considered. This kind of complacency and false sense of security may
actually lead to failure of planning. Identify the limitation of planning highlighted above.

a) ​Planning involves huge costs b) Planning leads to rigidity

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 c) Planning may not work in a dynamic d) Planning does not guarantee success
environment
18. Match the concept of management in Column I with their respective definition in Column II: [1]

(a) Effectiveness (i) Doing the task correctly and with minimum cost.

(b) Efficiency (ii) Finishing the given task on time.

(c) Process (iii) The primary functions or activities that management performs to get things done.

a) (a) - (i), (b) - (ii), (c) - (iii) b) (a) - (ii), (b) - (i), (c) - (iii)

c) (a) - (iii), (b) - (ii), (c) - (i) d) (a) - (i), (b) - (iii), (c) - (ii)
19. One of the important decisions under financial management relates to the financing pattern or the proportion of [1]
the use of different sources in raising funds. The financial decision highlighted is ________.

a) Dividend decision b) Capital budgeting decision

c) Working capital decision d) Financing decision

20. Fill in the blanks: [1]
The first step in the controlling process is ________.

a) Analysing Deviations b) Setting Performance Standards

c) Comparing Actual Performance with d) Measurement of Actual Performance

Standards
21. IBM. Tech Ltd. is a company producing IT services. The company’s profits are enough for the survival and [3]
growth. The management of the company believes that a satisfied employee creates a satisfied customer, who in
turn creates profits that lead to satisfied shareholders. So, it pays competitive salaries and perks to all its
employees. All the employees are happy working in the organisation because of personal growth and
development.
The company has a strong sense of social responsibility. It has set up an engineering college in which one-third
of the students are girls to whom the company gives 50% scholarship. Is the management of IBM. Tech Ltd.
fulfilling its objectives? Justify your answer by by quoting the lines from the above.
22. Explain any three measures to overcome the barriers to improve communications effectiveness. [3]
OR
Explain three advantages and three disadvantages of autocratic leadership style.
23. Explain the following as factors affecting Financing Decision: [3]
i. Fixed operating costs and
ii. Cash flow position of the company
24. What is meant by Consumer Protection? Explain any two points of importance of consumer protection from the [3]
consumers' point of view.
OR
Govind purchased a book from a book-seller and got the cash memo of ₹400 which he paid for the book. Later, he
found that the actual price of the book is ₹380 but the book-seller had put a sticker of ₹400 on the original price. Can
Govind recover the extra money that he paid? What other options are available to him against book-seller if he is
refused to give the extra money he paid?
25. Can planning work in a changing environment? Give reasons to justify your answer. [4]

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 OR
Explain the following types of plans:
i. Objective
ii. Programme
iii. Rule
26. “Controlling implies taking action”. Explain. [4]
OR
Explain- (i) Accomplishing organisational goals and (ii) Judging accuracy of standards as importance of controlling
function of management.
27. An organisation follows the principles of management. What are the adverse effects of each of the following [4]
principles on the organisation?
(i) Unity of Command
(ii) Order
(iii) Stability of Personnel
28. Handsen is the CEO of ‘Newcastle Enterprises’, one of the world’s most successful companies. His success [4]
stories have been well 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.
i. Identify the leadership style adopted by Handsen.
ii. With the help of the diagram, explain the other two leadership styles based on the use of authority.
29. Describe Offer through Prospectus and Private Placement as methods of floatation of new issues in Primary [4]
market.
30. State any five reliefs available to a consumer under the Consumer Protection Act, 2019 when consumer court is [4]
satisfied about the genuineness of the complaint.
31. Nisha Sethi was working as a Human Resource Manager in a famous consultancy firm, KLI Global Services. [6]
Her job included preparing job descriptions, recruitment, developing compensation and incentive plans and
facilitating employee learning. They had entered into alliances with institutes to ensure continuous learning of
their employees. With the jobs becoming more and more complex, KLI Global Services invested large amount
of money in making the employees learn the skills necessary to complete the jobs. State by giving any five
points, how this investment is likely to benefit the organisation?
OR
Owing to the increased workload after demonetisation, the income tax employees of Karnataka and Goa region had
urged the centre to increase manpower of the I-T department by filling up 35% vacancies which were lying vacant as
there were confirmed reports about misuse of bank accounts, foreign exchange mechanism, gold purchases and
adoption of various other dubious means for investing the unaccounted cash.
In the context of the above case:
i. Identify and explain the function of management being discussed in the above lines.
ii. Identify and explain the particular step related to the function of management as identified in part (a) of the
question which has already been performed. Also, state the next three steps to be performed after this step.

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32. A good understanding of the environment by business managers enables them not only to identify and [6]
evaluate but also to react to the forces external to their firm.
How would you argue that the success o f a business enterprise is significantly influenced by its environment?
OR
On Your Marks is a good shoe manufacturing company. The company is the first to start a shoe having a unique
technology giving it a long life. However the company knows that it exists in an environment where everything
around it counts; so everything around it matters. Therefore, it is trying to observe every small aspect of the business
environment. There are various factors which are closely related to each other and can't be understood in isolation
like change in lifestyle which can be linked to the improved demand of technologically advanced shoes. However,
the company can't be self satisfied. It will have to adjust to rapidly changing technology, fragmentation of market,
changing brand loyalties, etc. It has got good man power and a very well established production department. It knows
that various resources in the form of inputs have to be transformed into the best products and sold for increasing its
revenue. However, there are various challenges which the company is facing. These are in the form of protests done
by labour unions throughout the country which sometimes assume the form of strikes. The board of directors is keen
to adapt to this difficult situation. Government is playing a very positive role, like it did a few years back, and is
freeing the business environment from unnecessary restrictions and government controls. The company is hopeful of
emerging as a winner under such government support.
i. Which features of business environment are highlighted in the above case?
ii. Identify the importance of business environment highlighted in the above case?
iii. Which dimension of business environment is highlighted above?
iv. Which economic reform is discussed in the last part of the case?
33. Distinguish between formal and informal organisation. [6]
34. Advertisement is an important business activity. On the one hand, it makes available to the people information [6]
regarding different new and old products and on the other, it is also a source of living for many persons.
Impressed by these traits of advertisement Tanu, Manu and Sanchit, three students of Class-XII made up their
mind to go ahead with project work on an advertisement. All the three conversed with the people about
advertisement. Each one of them, on the basis of his survey, concluded as under:
i. Tanu opined that advertisement costs get transferred to consumers in the form of high prices.
ii. Manu was of the opinion that advertisement showed reality in a twisted form.
iii. Sanchit maintained that advertisement was turning people from reality to artificiality.
a. What do the above remarks about advertisement hint at? Clarify it.
b. Identify two values that advertisement presents to society.

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