ADITYA VIDYASHRAM RESIDENTIAL SCHOOL
PUDUCHERRY
BUSINESS STUDIES
SAMPLE PAPER - 9
CLASS : XII C
DURATION: 3 HOURS MARKS : 80
1 The last step in the Trading Procedure on a Stock Exchange is: 1
(a) Settlement of account (b) Selection of a broker
(c) Placing an order (d) Executing the order
2 Big Dish Ltd., the online retailer of crockery items, aims to reduce its order processing time 1
from 15 days to 10 days. Which step of Controlling is being performed by Big Dish Ltd.?
(a) Taking Corrective Action (b) Analysing Deviations
(c) Measurement of Actual performance (d) None of these
3 1
(a) (iii), (i), (ii) (b) (i), (ii), (iii) (c) (iii), (ii), (i) (d) (i), (iii), (ii)
4 In the times of the highly developed technological environment where customers depend 1
heavily
on online modes of transactions, be it availing of the banking services or just buying the
products, the firms that continue to rely on their age old successful traditional practices, may
not succeed in future. Which limitation of Planning is referred to?
(a) It reduces creativity. (b) It leads to rigidity.
(c) It does not guarantee success. (d) It may not work in a dynamic environment.
5 In which year was the SEBI established by the Government of India? 1
(a) 1992 (b) 1993 (c) 1980 (d) 1988
6 ‘Consumers are likely to lean towards cars that offer such features and might even be willing to 1
pay extra for their own physical and mental well-being. Companies that incorporate such
innovation while staying cost-effective will likely have the upper hand in terms of sales.’ What
does this tell about the importance of Environmental Scanning?
(a) It enables the firm to identify opportunities and getting the first mover advantage.
(b) It helps the firm to identify threats and early warning signals.
(c) It helps in coping with rapid changes.
(d) It helps in tapping useful resources.
7 The Production Manager and the Marketing Manager while having tea during the lunch break, 1
discussed about schedule of product delivery, product design, quality, etc. Which type of
communication did they have?
(a) Horizontal Communication (b) Vertical Communication (c) Informal Communication
(d) None of these
8 ________ is a joint programme of training in which educational institutions and business firms 1
cooperate.
(a) Apprenticeship training (b) Vestibule training (c) Induction training (d) Internship training
9 Rohit provided certain details and information to a broker as required by him for opening the 1
demat account.’ Identify the information that is mandatory to be given.
(a) PAN number (b) Educational qualification and occupation
(c) Residential status (Indian/NRI) (d) Date of birth and address
10 Which of the following statements is not true with regard to capital market? 1
(a) It consist of primary and secondary market.
(b) Only equity funds can be raised through it.
(c) It deals in long-term securities.
(d) All of these
11 Statement I: Business environment is dynamic and constantly adapt itself to these changes. 1
Statement II: Planning is a blessing in facing a definite situation, but because of its long
process, it cannot face sudden emergencies.
Choose the correct option from the options given below:
(a) Statement II is true and I is false (b) Statement I is true and II is false
(c) Both the statements are false (d) Both the statements are true
12 Short-term investment decision is also known as ______ decisions. 1
(a) Financing (b) Working capital (c) Capital budgeting (d) None of these
13 “The nature of the relationship of our country with foreign countries”, is a major element of 1
which of the following components of the Business Environment?
(a) Political environment (b) Economic environment
(c) Social environment (d) Legal environment
14 ‘The informal communication arises out of needs of employees to exchange their views, which 1
cannot be done through formal channels.’
Which need as per Maslow’s Need Hierarchy theory gets satisfied by informal communication?
(a) Physiological needs (b) Esteem needs (c) Affiliation needs (d) Safety needs
15 Identify the principle of management, the application of which requires good superiors at all 1
levels, clear and fair agreements and judicious application of penalties.
(a) Discipline (b) Equity (c) Scalar Chain (d) Unity of Command
16 Identify the barriers may prevent a communication or filter part of it or carry incorrect meaning 1
due to which misunderstandings may be created illustrated by the picture given below.
(a) Organisational barriers (b) Personal barriers (c) Semantic barriers (d) Psychological
barriers
17 Arrange the following functions of process of management in correct sequence: 1
(i) Planning (ii) Directing
(iii) Organising (iv) Staffing (v) Controlling
Choose the correct option:
(a) (i), (iii), (iv), (ii), (v) (b) (i), (iii), (ii), (iv), (v)
(c) (i), (iii), (v), (ii), (iv) (d) (i), (iv), (iii), (ii), (v)
18 Since the real business situations are very complex and dynamic, so the principles of 1
management cannot provide readymade, straitjacket solutions to all managerial problems.
What does it tell about the nature of Principles of Management?
(a) Flexible (b) Contingent (c) Universally applicable (d) General guidelines
19 By developing world class product testing facilities, to test drugs, food, cars or any other 1
consumable product that can otherwise prove to be a menace to life, which consumer right is
being taken care of?
(a) Right to safety (b) Right to be informed (c) Right to be heard (d) Right to consumer
education
20 While many small players in the market have been adversely impacted, there are many who 1
could just turn out to be beneficiaries once things crawl back to the normal. Just that, there is
no clarity yet on what that ‘normal’ will be.
Which feature of Business Environment is highlighted when we say ‘there is no clarity yet on
what that ‘normal’ will be’?
(a) Inter-relatedness (b) Specific and general forces (c) Uncertainty (d) Dynamic
nature
21 State any three protective functions of Securities and Exchange Board of India 3
22 In an organisation the production department blames the marketing department and the 3
marketing department blames production department, for the non-achievement of the
organisational goals. They are neither ready to listen to each other nor bring any changes in
their workings to help each other.
This force is a vital element of one principle of management given by Fayol and one principle of
Scientific Management given by Taylor. Identify these principles and explain them.
23 Narula Software Limited assured their employees that in spite of recession, no worker will be 3
retrenched from the job.
(a) Name and explain the type of incentive offered to the employees.
(b) Explain one more incentive of the same category.
24 Dee Industries is facing a lot of opposition as it pays less salary to female workers as 3
compared to male workers for equal work. Which dimension of business environment is being
referred to?
Discuss.
OR
Name and explain the technique of Taylor which is the strongest motivator for a worker to reach
standard performance.
25 Capital Structure decisions are essentially the optimisation of the risk return relationship. 4
Discuss. Explain any three factors affecting the choice of capital structure.
OR
Discuss any four factors affecting working capital requirements of a business firm.
26 ‘How well one delegates, determines how well he manages.’ In the light of this statement, 4
explain any three points of importance of delegation.
27 Explain any four points of importance of the controlling function of management. 4
28 A company needed to appoint an accountant. For this, it had received 40 applications. Out of 4
these, 15 were not eligible as per the requirements, so the company rejected their applications
outright. To ensure that everybody gets a chance to prove their worth, they conducted an
intelligence test and trade test. It was followed by a round of face to face conversation between
the shortlisted candidate and the Finance Manager.
(a) Identify the process being followed above.
(b) State by quoting the lines, the stages of the above process followed.
OR
Jaipur Handicrafts has been doing good business for last five years. Sameer, the manager
reported a decline in the number of orders received in the year. He ordered for keeping a track
on the progress of all activities in the organisation to bring to light the deviations and to initiate
the corrective action required.
Explain the steps involved in the function Sameer is performing here.
29 Mr. MK Mishra is working as a Human Resource Consultant in a firm manufacturing garments, 4
which is facing a problem of high employee turnover. The Managing Director has invited
suggestions from his for retaining the talented employees. Mr. MK Mishra recommends that the
good employees be rewarded in a way that it creates a feeling of ownership amongst the
employees and at the same time makes them contribute towards the growth of the
organization.
(a) Identify the incentive which has been suggested by MK Mishra to the Managing Director of
the Company.
(b) Also, explain any two other incentives of the same type.
30 The Consumer Protection Act 2019 seeks to protect and promote the interest of the 4
consumers.
The Act provides for six rights to the consumers with a view to empower them. But, consumer
protection can be achieved only when the consumers understand and fulfill their
responsibilities.
State such responsibilities of a consumer.
31 Explain the following principles of scientific management: 6
(a) Harmony, not discord.
(b) Science, not rule of thumb.
(c) Development of each and every person to his or her greatest efficiency and prosperity.
32 A company earned a profit of 20 lacs during the year end. It had some expansion plans in the 6
near future, therefore, it decided to retain the profits. At the same time, it did not want to
disappoint its investors. It, therefore, decided to capitalise its reserves and issue bonus shares
to them.
(a) Which financial decision is being referred to?
(b) Discuss the factors affecting it.
OR
Capital market has an institutional arrangement to facilitate buying and selling of existing
securities. It helps existing investors to disinvest and fresh investors to enter in the market.
Explain the functions of such institutional arrangement
33 Plasto Goods Private Limited manufactures plastic goods. It has plans to enter the international 6
market. For this it has hired the services of professionals who are going to help them in
planning
by collecting facts and figures, conducting surveys, etc. The professionals studied the demand
pattern of people in some countries, their occupations and the literacy rate. They also tried to
study the Export Import (EXIM) Policy of not only our country but the other countries so as to
estimate its possible impact on the company’s future plans. A lot of money was spent on all this
and the management feared that the costs may exceed the gains. Finally, a comprehensive
plan stating the objectives, budget involved, policies and procedures to be followed was laid
down.
(a) Which step of planning has been performed by the professionals? Explain it and give next
two steps of planning.
(b) Which limitation of planning is being referred to? Explain by quoting the relevant line.
OR
Simran works as a corporate event coordinator in an event management company. She has
been made an overall official incharge for organising a painting 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 of
each group. Each member in the group is asked to report to their respective supervisors and all
the supervisors are expected to work as per Simran’s orders.
(a) Identify and explain the function of management being performed by Simran.
(b) Explain the steps involved in the performance of the function of management as identified in
part (a).
34 Mr. Harshil, the Marketing Manager of Sigma Solutions Private Limited had to take few 6
important decisions related to the sale of product. These decisions were of utmost importance
as they would not only facilitate the customers in product identification, usage and
differentiation but will also help the company in providing the relevant information to the
consumer.
(a) Identify and explain the element of marketing mix being referred here.
(b) State and discuss its components.
