Page 1 Sample Paper 08

Sample Paper 08
Class - 12th Exam - 2024 - 25
Business Studies (054)
Time : 3 Hours Max. 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.

1. FinGrowth Ltd., a mid-sized enterprise, aimed to expand its operations by opening new branches
across the country. The finance team conducted a thorough financing decision, evaluating various
funding options such as bank loans, issuing bonds, and raising equity through shareholders.
They determined that a balanced mix of debt and equity would minimize the cost of capital
while maintaining financial stability.
Once the necessary funds were secured, FinGrowth allocated resources efficiently across different
projects, ensuring optimal utilization of capital. The finance department diligently monitored
cash flows to maintain liquidity and managed investments to maximize returns while mitigating
risks. Additionally, FinGrowth implemented strict working capital management practices to
ensure that daily operations were adequately funded without overextending resources. The
company also established a budget control system to track expenditures and ensure they
remained within approved limits. Through informed financial decisions and strategic resource
allocation, FinGrowth successfully expanded its operations without compromising its financial
health, demonstrating effective financial management.
Which function of financial management is demonstrated by FinGrowth Ltd. evaluating and
choosing a mix of debt and equity to fund its expansion?
(A) Investment decision (B) Financing decision
(C) Dividend decision (D) Working capital management

2. FinServe Pvt. Ltd., a leading financial services company, operates within a dynamic financial
market. The company facilitates the buying and selling of financial instruments such as stocks,
bonds, and derivatives. By connecting investors with businesses seeking capital, FinServe plays
a pivotal role in the financial ecosystem. The financial market enables efficient allocation of
resources, liquidity provision, and price discovery, which are essential for economic growth and
stability. FinServe’s operations exemplify the fundamental functions of a financial market in
supporting both investors and issuers.
What role does FinServe Pvt. Ltd. play in the financial market?


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Page 2 Sample Paper 08 CBSE 12th Business Studies

(A) Manufacturing goods

(B) Facilitating the buying and selling of financial instruments
(C) Providing healthcare services
(D) Developing software solutions

3. The marketing concept assumes that a company can achieve its goals by:
(A) Maximizing production output
(B) Focusing on product quality alone
(C) Understanding and meeting customer needs
(D) Implementing aggressive selling techniques

4. EcoClean Services, a cleaning company, aimed to increase its market share by 20%. They
achieved this by expanding their client base (effectiveness) and optimizing resource usage,
reducing costs by 15% (efficiency). By implementing eco-friendly cleaning methods and training
employees to work swiftly without compromising quality, EcoClean balanced both effectiveness
and efficiency. This dual focus led to sustainable growth and high customer satisfaction,
positioning EcoClean as a leader in the eco-friendly cleaning industry.
How did EcoClean Services demonstrate both effectiveness and efficiency in their operations?
(A) By increasing the number of employees
(B) By expanding the client base and reducing costs
(C) By introducing new services without training
(D) By focusing solely on customer satisfaction

5. According to Taylor, ‘Fatigue Study’ aims to determine:

(A) The best time for workers to retire
(B) The amount and frequency of rest required to maintain efficiency
(C) How to make workers work longer hours
(D) The mental state of employees

6. AgroGrow Enterprises, an agricultural equipment manufacturer, thrives by adapting to the

economic dimension of the business environment. During economic downturns, AgroGrow
offers affordable financing options to farmers, ensuring steady sales. Conversely, in booming
economies, the company introduces premium products to cater to increased purchasing power.
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This strategic flexibility based on economic conditions helps AgroGrow sustain its business
across varying economic cycles.
How does AgroGrow Enterprises adapt to the economic dimension of the business environment?
(A) By ignoring market trends
(B) By offering affordable financing during downturns and premium products in booms
(C) By only focusing on premium products
(D) By reducing product lines

7. Assertion (A): Planning provides direction to the organization.

Reason (R): It helps in reducing uncertainties by anticipating future events.
Which of the following is correct?
(A) Both A and R are true, and R is the correct explanation for A.
(B) Both A and R are true, but R is not the correct explanation for A.
(C) A is true, but R is false.
(D) A is false, but R is true.

8. Medicare Pharmaceuticals adopts a functional structure, organizing its operations into

departments like research and development, production, marketing, and finance. This structure
allows for specialization and expertise within each function, enhancing efficiency and product
quality. However, as the company expands internationally, it considers shifting to a divisional
structure to better address regional market needs and improve responsiveness, balancing the
benefits of both organizational structures.
What type of organizational structure does Medicare Pharmaceuticals initially adopt by
organizing departments based on functions like R&D and marketing?
(A) Divisional Structure (B) Matrix Structure
(C) Functional Structure (D) Flat Structure

9. Assertion (A): Performance appraisal is solely used for determining employee salaries.
Reason (R): Performance appraisal evaluates employee performance against set objectives.
(A) Both A and R are correct, and R is the correct explanation of A.
(B) Both A and R are correct, but R is not the correct explanation of A.
(C) A is correct, but R is incorrect.
(D) Both A and R are incorrect.
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10. Alpha Electronics introduced a mentorship program where experienced employees guided new
hires. This initiative helped new employees adapt quickly, understand company culture, and
develop necessary skills, resulting in higher job satisfaction and reduced onboarding time.
Question: What directing strategy did Alpha Electronics use to enhance new employee
integration?
(A) Job rotation (B) Mentorship program
(C) Financial bonuses (D) Increased supervision

11. Read the following statements carefully:

Statement I: Controlling is a backward-looking function.
Statement II: The first step in the controlling process is setting performance standards.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

12. Read the following statements carefully:

Statement I: Dividend decisions affect both current earnings and future growth of the company.
Statement II: A higher dividend payout always leads to higher market price of shares.
In light of the given statements, choose the correct alternative:
(A) Both statements are true.
(B) Both statements are false.
(C) Statement I is true, Statement II is false.
(D) Statement II is true, Statement I is false.

13. Identify the correct sequence of actions in managing investment risk.

1 Assessing risk tolerance
2 Diversifying the portfolio
3 Monitoring investments
4 Setting financial goals
(A) 1, 4, 2, 3 (B) 2, 1, 3, 4
(C) 4, 1, 2, 3 (D) 1, 2, 3, 4
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14. Match the list I with list II and select correct option.
List I List II
a. Consumer Rights i Choose products
b. Right to Information ii Be heard
c. Right to Choose iii Seek redressal
d. Right to be Heard iv Access product information
Options:
(A) a-i, b-ii, c-iii, d-iv (B) a-iii, b-iv, c-i, d-ii
(C) a-iii, b-i, c-iv, d-ii (D) a-ii, b-i, c-iii, d-iv

15. Consider the following statements about the concept of management:

1 Management is a dynamic process of achieving organizational goals efficiently and
effectively.
2 Management involves planning, organizing, staffing, directing, and controlling.
3 Management applies only to profit-making organizations.
4 Management integrates human and material resources.
Which of the above statement(s) is/are correct?
(A) 1, 2, and 4 only
(B) 1 and 3 only
(C) 2 and 3 only
(D) All of the above

16. Identify the function of management being highlighted in the picture given below.

(A) Directing (B) Controlling

(C) Organising (D) Staffing
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17. Which of the following statements is correct about the concept of ‘Business Environment’ ?
(A) It includes only internal factors affecting the business.
(B) It comprises external factors that influence a business.
(C) It refers exclusively to the economic factors affecting a business.
(D) It is irrelevant to business operations.

18. Which statement about the limitations of planning is correct?

(A) Planning enhances flexibility.
(B) Planning is an informal process.
(C) Planning can become outdated quickly.
(D) Planning guarantees long-term success.

19. Which of the following statements is NOT correct regarding the concept of organizing as a
structure and as a process?
(A) Organizing as a structure involves defining roles and responsibilities within an organization.
(B) Organizing as a process includes the continuous arrangement and coordination of resources.
(C) Organizing as a structure focuses solely on informal relationships among employees.
(D) Both organizing as a structure and as a process aim to achieve organizational objectives
efficiently.

20. Which of the following statements about internal recruitment is not correct?
(A) Internal recruitment can enhance employee morale.
(B) Internal recruitment broadens the talent pool significantly.
(C) Internal recruitment often reduces recruitment costs.
(D) Internal recruitment relies on existing employees for filling vacancies.

21. List any three functions performed by the top level management.


O
‘Environment provides with constraints and opportunities.’ Discuss with the help of an example.


Ans :
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22. Identify and discuss the marketing management philosophy that laid stress on improving the
level of production thereby reducing the average cost of production.

23. Hemant decided to start a chocolate manufacturing business. He set the target of earning 10%
profit on sales in the first year. As a good businessman, he was concerned about the future of
the business, which was uncertain. He gathered information that the demand for chocolates
is increasing day-by-day. He used this information as the base for future planning and shared
it with his team. On the basis of the gathered information, he scheduled a meeting in the
following week to find innovative ways to achieve the objectives.
List the first two steps, which have been followed by Hemant that are related to the process of
one of the functions of management.

24. Discuss the importance of Organising in a business concern.

O
Explain when and why the need is felt for having a framework, within which managerial and
operating tasks are performed to accomplish desired goals. Name this ‘framework’ also.

25. Describe different types of depository services.

26. Discuss giving reasons why a business must emphasise on protecting the interest of consumers
and adequately satisfying them.

27. Despite internal sources of recruitment being economical, why do companies not always use this
source? Explain any four reasons.

O
Discuss Maslow’s Need Hierarchy Theory of Motivation.

28. From time to time, an organisation provided the employees with a hike in their salary and
different allowances. It also offered the top and middle level managers with some facilities like
housing and medical. Inspite of this, the employees often felt low and dejected. The Human
Resource Manager tried to identify the reason and he found that the employee turnover was
high in the organisation. The employees were fired from the job for even petty reasons. This
had created a fear in their minds. Also, they were not given sufficient opportunities to interact
with each other and the top level management did not entertain any suggestions from the
employees.
(a) Which incentives were offered by the organisation? State its types by referring to the lines.
(b) Which incentives, they still need to offer to motivate the employees. Quote the lines to
justify its types.
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29. Guru Steel Private Limited allocated work to different teams of workers. Teams were responsible
for cutting of wood, polishing of wood, designing the furniture, assembling of parts respectively.
All the workers had mutual trust amongst each other and worked together in harmony. They
kept their tools and implements in tool boxes. They followed certain rules while working, like no
smoking while working, no leave without permission and no use of cell phones during working
hours. They were paid fair wages for their work which was within the paying capacity of the
company.
Identify any four principles of management being followed in this organisation and state their
one advantage of each.

30. Discuss the technique of functional foremanship given by FW Taylor.

O
After identifying that the majority of Indians were vegetarians, the big giants like KFC and Mc
Donalds introduced Veggie Wraps and Paneer Burgers for them. This not only helped them to
fetch a good response in the market but also provided them with an opportunity to continue to
succeed in the market for a longer period.
What does the above situation tells about the importance of environment scanning to the big
giants? Explain any three other benefits.

31. Business concerns work in a dynamic environment. The introduction of robotics in the
manufacturing processes has led to a revolution in the international market. Identifying this
and to get the benefit from this, Castle Ltd. decided to introduce it in their production process.
But to handle the robots they needed to train their employees. Since the Robots were too
expensive so they did not want the employees to handle them directly.
(a) Which method of training should be followed by them and why?
(b) State any four points of importance of training to the employees.

32. Planning as a function of management requires application of mind and involves intelligent
imagination and sound judgements. It also involves thorough examination and evaluation of
different alternatives to choose the most appropriate one.
(a) Which features of planning are referred to?
(b) Discuss four other features of planning.

33. Vanita deals in the manufacturing of handmade baskets. Her baskets are handcrafted and
made for all the special occasions and festivals. She has given it the name of ‘The Lap’. Each
of the product is attached with a proper label specifying the weight, price, material used and
instructions for its usage. The baskets are nicely packed in corrugated boxes to ensure that
they do not spoil during the transport. To make the consumers aware about her product, she
spent a lot on printing the pamphlets and brochures. During festival time, sales persons are
appointed to contact prospective buyers and create awareness about the product. The products
are moderately priced. As competition is intense in the market, the pricing policy is such to
Page 9 Sample Paper 08

survive in competitive market. This year, Vanita received a good response from the market and
gained a larger market share.
Identify and explain the concept of marketing mix and its elements that are discussed above.

O
Mr. Bansal is running a poultry farm. He supplies eggs in the neighbouring market under
the brand name ‘Healthy Anda’ . The product is packed in reusable crate of six pieces each.
A proper label is also pasted giving the necessary information to the customers. Explain this
component of product mix along with its functions.

34. Mobu Toys Private Limited was an established brand in the field of electronic toys. It had its
operations spread out in three countries, India, France and Australia. Due to the high demand
of its toys in international market, it decided to set up a manufacturing unit in Japan also.
To start with, they had two options, i.e., to enter into a joint venture with an existing toy
manufacturing company in Japan or to install their own plant. It also tried to find out the
different financing alternatives available there, lease financing being one of them. Since, they
would work on automated machines, so the requirement of labour would be relatively less for
them.
State, by quoting the relevant lines, the different factors affecting their fixed capital requirements
considered by them and how will they impact them.


O
Mr. Harish Parekh was the chairman of ‘Bandhan Bank’. The Bank was earning good profits.
Shareholders were happy as the bank was paying regular dividends. The market price of their
shares was also steadily rising. The bank announced taking over of ‘Karur Bank’.
Harish Parekh knew that the share price of Bandhan Bank would rise on this announcement.
Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his
rich friends Nilesh and asked him to invest `6 crores in the shares of his bank promising him
the capital gain. As expected, the share prices went up by 40% and the market price of Nilesh’s
shares was now `8.4 crores. He had earned a profit of `2.4 crores. He gave `1.2 crore to Mr.
Harish Parekh and kept `1.2 crore with him. On regular inspection and by conducting enquiries
of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this
irregularity. SEBI imposed a heavy penalty on Harish Parekh.
By quoting the lines from the above para, identify and state any two functions that were
performed by SEBI in the above case. Also, explain two more functions of the same category
each.

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