KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION

SAMPLE PAPER SET-9

CLASS – XII SUBJECT: BUISNESS STUDIES

TIME: 3 HOURS MM:80

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 worlds.
5. Answers to the questions carrying 4 marks may be about 150 worlds.
6. Answers to the questions carrying 6 marks may be about 200 worlds.
7. Attempt all parts of the questions together. 2020-21

Q. Part A :- Principles and Functions of Management MAR

NO. KS
1. If planning, organising, staffing, directing and controlling applied in a 1
organisation such school, club, restaurant hospitals etc? If yes, which
characteristics of management does it signify?
a. Management is dynamic
b. Management is goal oriented
c. Management is multi-dimensional
d. Management is pervasive
2 Sonali is the manager of a large company manufacturing garments for kids. 1
She plans her winter collection in the month of August itself. Then, she
ensures that there is adequate workforce. She continuously monitors
whether production is proceeding according to plans. She asks the
marketing department to prepare their promotional and advertising
campaigns also. Identify the concept of management explained in the above
para.
a. coordination
b. cooperation
c. organising
d. all of these
3 Ramarjuna joins an IT from as a system analyst after completing his masters 1
in Computer Science. As the nature of his work demands he has to work in
very close coordination with all the departmental heads in the firm, very
soon Ramarjuna realizes that each departmental head has own individual
style of working. They differ greatly in their day-to-day approach to work.
They tend to deal with a given situation, an issue or a problem through a
combination of their own experience, creativity, imagination, initiative and
innovation. In the context of the above case: Identify the nature of
management highlighted in the above case.
a. management as an Art
b. Management as a Science
c management as a science as well as Art
d. None of these
4 Geetika is working in a private sector bank. One of her key function relates 1
to the formulation of the overall organizational goals and strategies of the
bank. Identify the level of management at which she is working?
a. Lower level b. Middle level c. top level d. none of these
5 Which component of business environment requires that advertisements 1
of baby food must necessarily inform the potential buyers that mother’s
milk is the best?
a. Political environment b. social environment
C Legal environment d. all of these
6 It is the process by which government control over the industry is being 1
loosened. Give the term to which this statement is trying to indicate.
a. Globalisation
b. Privatisation
c. Liberalisation
d. none of these
7 Philips, a company manufacturing light bulbs incurred heavy expenditure 1
on scientific Research and Development and discovered a technology that
made it possible to produce an energy efficient light bulb that lasts at least
twenty times as long as a standard bulb. It resulted in growth and
profitability of the company. Identify and state the dimension of business
environment mentioned above.
a. technological environment b. economic environment
c. political environment d. social environment
8 D & D Ltd. is a large manufacturing unit. Recently, the company has 1
conducted the ‘time’ and ‘motion’ studies and concluded that on an
average a worker could produce 120 units per day. However, it has been
noticed that average daily production of a worker is in the range of 80-90
units. Which function of management is needed to ensure that the actual
performance is in accordance with the performance as per ‘time’ and
‘motion ‘studies?
a. planning b. organising c. controlling d. none of these
9 Which organisation structure is suitable for a uni-product manufacturing 1
Company?
a. Functional structure b. Divisional structure
c. both a and b d. none of these
10 Alpha Ltd. was manufacturing Auto spare parts. To improve the efficiency 1
of employees the company provided training to their employees by inviting
an expert who demonstrated the whole process of manufacturing. The
expert quoted that all deviations cannot be controlled, so manager must
know which deviation in key areas must be attended urgently as compared
to deviation in non-key area. He also suggested that human beings are
bound to make mistakes as manager should not take strict action on every
minute mistake of workers, rather he can fix a range of deviation and take
action if deviation is above the specified large. Name the two ways of
analyzing deviation mentioned above.
(a) critical Point Control (b) Management by exception
(c)both (a) and (b) (d)none of these
11 Sakshi Ltd, a well-known real estate company has managed to carve a niche 1
for itself in this sector. Recently, it was revealed that the directors of the
company have used price sensitive information for their own personal
 interest. Adequate public disclosures were also not made. SEBI is
considering action against these directors. Name the term used for trading
malpractice done by the directors of this company.
12 Which of the following is the ideal situation. 1
a. Authority> responsibility b. Authority = Responsibility
c Authority < responsibility d. None of these
13 A company require Rs. 2 crore for inventory, payment of wages, salaries, 1
maintaining bank balance, etc. Suggest which financial market the company
may approach.
a. Money market b. capital market c. both a and b d. None of these
14 Mission Coach Ltd. is a large creditworthy company that manufactures 1
coaches for the Indian Railways. It now wants to export these coaches to
other countries and decides to invest in new hi-tech machines. Since the
investment is large, it requires long-term finance. It decides to raise funds
by issuing equity shares. The issue of equity shares involves huge
floatation cost. To meet the expenses of floatation cost, the company
decides to tap the money market. 1. Name the explain the money-market
instrument the company can use for the above purpose.
a. treasury bill b. certificate of deposit
C call money d. Commercial paper
15 Which of the following best indicates the importance of business 1
environment.
a. Identification b. improvement in performance
c coping with rapid changes d. All of them
16 Reshu’s father has gifted her shares of a large cement company, with which 1
he had been working. The securities were in physical form. She already has
a bank account and does not possess any other forms of securities. She
wished to sell the shares and approached a registered broker for the
purpose. Mention one mandatory detail which she will have to provide
with the broker.
a.Permanent account Number (PAN) b. Aadhar c. passport d. all of these
17 Amar is engaged in manufacturing of refrigerators. He surveyed the market 1
and found that customers need a refrigerator with a separate provision of
water cooler in it. He decided to launch the same refrigerator in the market.
a. Production concept
b. Product concept
c. Selling concept
d. Marketing concept
18 ‘Maruti Vega Ltd.’ entered into the market with coloured television and 1
have now introduced products like audio systems, air-conditioners, washing
machines, etc. the company is not only offering the products but also
handling complaints and offering after-sales services. Identify the element
of marketing-mix discussed here
a place mix b. price mix c. product mix d. promotion mix
19 It is the identification of a product. It can be in the form of name, symbol, 1
or design.it helps in differentiating the firm product from competitor
product. Which concept of marketing is highlighted in above case.
a. Labelling
b. packaging
c. branding
 d. all of these
20 Match the following: 1
a. Production concept 1. Customer satisfaction
b. Product concept 2. To sell whatever is produced
c. Selling concept 3. Large scale production to decrease the cost
d. Marketing concept 4. Good quality, added feature in product
21 Explain any three points of importance of controlling. 3
22 The management of Amaira Ltd. strongly believes that the members of the 3
organization should work toward fulfilled the common organizational goals.
This requires team work and integration of efforts of all individuals
departments and specialists. This is because all the individuals and
departments depend on each other for information and resources to
perform their respective activities. Manager needs to reconcile differences
in approach, timing, efforts and interest. At the same time it should enable
all its members to grow and develop. Thus, there is a need to harmonize
individual goals and organizational goals.
1. State the concept of management discussed above.
2. State any two features of the concept identified in above para
23 Distinguish between Internal recruitment and external recruitment on the 3
basis of:
a. Meaning b. economy and c. Morale of employee
OR
What are the sources of internal recruitment?
24 What are the regulations of SEBI that company must comply with.(any 3
three)
Or
What are the protections that Investor enjoys under SEBI Guidelines.
25 A company’s earning before interest and tax is Rs 10 lakh. It pays 10% 4
interest on its debt. Total investment of company is Rs 50 lakh.
(a) Advise the company whenever it should include debt or equity to
raise its capital.
(b) Name the concept related to this.
OR
What are the different ways of issuing securities in Primary Market.
26 ‘Madhur Milan’ is a popular online matrimonial portal. It seeks to provide 4
personalized match making service. The company has 80 offices in India,
and is now planning to open offices in Singapore, Dubai and Canada to cater
to its customers beyond the country. The company has decided to opt for
the sources of equity capital to raise the required amount of capital. In
context of the above case:
1. Identify and explain the type of risk which increases with the higher use
of debt.
2. Explain briefly any three factors because of which you think the company
has decided to opt for equity capital
27 A company X Ltd. is setting up a new plant in India for manufacturing auto 4
components. India has highly competitive and cost-effective production
base in this sector. X Ltd. is planning to capture about 40% of the market
share in India and also export to the tune of at least $5 million in about 2
years of its planned operations. To achieve these targets, it requires a
 highly trained and motivated workforce. You have been retained by the
company to advise it in this matter.
(i) Which sources of recruitment the company should rely upon?
(ii) Which methods of training should company initiate?
28 Huma is working in a company on a permanent basis. As per job agreement 4
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 realized
that she was fulfilling only some of her needs while some other needs still
remained to be fulfilled.
(i) By quoting the lines from the above para, identify the needs of Huma
which she is able to fulfil.
(ii) Also explain two other needs of Huma followed by the above needs,
which still remained to be satisfied.
29 What is the need for consumer protection? 4
Or
Explain the following Rights available under Consumer Protection Act.
a. Right to safety b. Right to be Heard
30 Mrs. Rajlaxmi is working as the Human Resource Consultant in a firm 4
manufacturing cosmetic, which is facing a problem of high employee
turnover. The CEO of the company has invited suggestions from her for
retaining the talented employees & reducing the
employee turnover. Mrs. Rajlaxmi recommends that the good employees
be rewarded in a way that it creates a feeling of ownership among the
employees and at the same time makes them contribute towards the
growth of the organization.
(a) Identify the incentive and explain its type, which has been suggested by
Mrs. Rajlaxmi to the CEO of the company.
(b) Also explain any two other incentives of the same type
31 What is Price mix? Explain the factors which are to be kept in mind while 6
fixing the price of a Product.
Or
What is Labelling. Discuss briefly the functions perform by labelling
32 What are the main features to be considered by the management while 6
planning.
33 Home Creations Ltd.’ is a well -known chain of large department store 6
offering various types of products under one roof. The company owns fifty
stores in various parts of the country. Each store is placed under the charge
of a manager who is allowed to run their stores autonomously by deciding
about the products which may be promoted, appointment of staff, ways to
handle customer complaints etc. As these managers have a deeper
knowledge of the local situations, it enables them to take these decisions
effectively keeping in view the local circumstances and consumers’ needs.
This approach helps to improve customer service and at the same time
serves to boost morale and increase the job satisfaction of the store
managers as it empowers them to innovate and use their initiatives. In the
context of above case:
1. Identify and explain the policy followed by ‘Home Creations Ltd.’ to run
their stores successfully.
 2. Also, give any three points highlighting the importance of the approach
followed as identified in part (a) of the question.
3. List any two values that ‘Home Creations Ltd.’ wants to communicate to
its employees.
34 Explain briefly the following techniques of Scientific work study: 6
a. Motion study
b. Method study
c. Standardisation and simplification of work.
Or
Explain briefly the following principle of management
a. Order
b. Authority and Responsibility
c. Centralisation and Decentralisation