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SAMPLE PAPER FOR CLASS 12 BUSINESS STUDIES FOR TERM 2 PRE BOARD

Chapter 1(Nature and Significance of Management) Sample Paper

 

Class: XII

 PRE - BOARD EXAMINATION 2021-22

Subject:  Business Studies

Time: 2 HOURS                                                                                                                     Max. Marks= 40    

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 General Instructions:

This is a Subjective Question Paper containing 12 questions.

This paper contains 4 questions of 2 marks each, 4 questions of 3 marks each and 4 questions of 5 marks each.

2 marks questions are Short Answer Type Questions and are to be answered in 30-50 words.

3 marks questions are Short Answer Type Questions and are to be answered in 50-80 words.

5 marks questions are Long Answer Type Questions and are to be answered in 80-120 words.

This question paper contains Case/Source Based Questions.        

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Q.1 Identify and explain the two sources of the source of recruitment which cannot be used when the existing staff is either insufficient or

does not fulfil the eligibility criteria of the jobs to be filled.                                                         (2 marks)

Q.2 Krishna is holding 100 shares of “Radhika Industries Ltd.’ Radhika Industries Ltd.’ is wanting to expand its operations. For this it decides to issue shares. It also decides to offer its existing shareholders the privilege to subscribe to its new issue of shares in the proportion of 2 : 1. This means that for every two shares held by the shareholders, they will be offered one share.

Identify and explain the method of floatation of new issue described in the above case.                                                                                         (2 marks)

Q.3 Explain the two concepts which are part of the exercise which would reveal whether a company is understaffed, overstaffed or optimally staffed.                                                                              (2 marks)

Q.4 “Measurement of a company’s progress may involve calculation of certain ratios like gross profit ratio, net profit ratio, and return on investment etc. at periodic intervals”.

Identify the function of management involved in the above context. Also briefly explain the step in the process of the identified function discussed above.                                                                       (2 marks)

Q.5 Mr. Pawan Kumar, the CEO of an E-Commerce start up, which was facing the problem of huge employee turnover, decided to hold a meeting with the managers to discuss the issue. While addressing the managers in the meeting, he advised them to take certain measures which focus on psychological, social and emotional factors, in order to motivate employees.

Explain any two such measures discussed by him, when he suggested that job should be made Interesting so that the job itself becomes a source of motivation, employees should be congratulated for good performance, also, stability regarding future income and work should be provided to employees, in order to develop a positive attitude among the subordinates.                                                    (3 marks)

Q.6 State any three points of importance of Directing.                                                                 (3 marks)

 

OR

 

Define leadership as an element of Directing? Enumerate any two styles of Leadership.

Q.7 List any three factors affecting the Working Capital requirement of a company.                 (3 marks)

Q.8 Priya is a regional manager of XYZ. Ltd. She is a hardworking employee and is trying to reduce wastage of resources in her met according to these standards with minimal wastage of resources. She has set up CCTV cameras which helps her to keep a close check on the activities of the subordinates and know how the employees are performing. She also rewards the employees with a bonus when

these standards are met. She is trying her best to ensure a good performance of her team this year through the application of an important function of management.

Explain any two benefits of the function of management highlighted above.        

OR                       

When Lenovo India decided to strengthen its diversity numbers, it decided to tap into its referral system. The company asked its employees to recommend candidates, and decided to reward those who successfully recommended more women for the same roles. As employee referrals become an established method to hire quality lateral talent, companies are using technology platforms to build a steady talent pipeline through referrals. A majority of companies (nearly 41%, according to one study) across India use top technology for referral hires. According to the study India Recruiting Trends 2016 conducted by Linked In Talent Solutions, employee referrals are on the rise. This year, referrals were the top source of quality hires. “Nearly 55% of talent leaders see employee referral programmes as the top source of quality hire,” says Irfan Abdulla, director, talent solutions, LinkedIn India. Top players such as Coca-Cola, Infosys, Genpact, Capgemini, Deloitte, Dabur, Jubilant and more are reporting that over 40% of their hires come through referrals.

(a) The above discussion is indicating an important function of management. Name the function of management

(b) The management function identified in part (a) follows a particular process. Explain the step of this process which is being discussed in the above para.

(c) Identify the source of the step identified in part (b).                                                                (3 marks)

Q.9 Enumerate any five rights of a consumer under the Consumer Protection Act, 2019.           (5 marks)

 

OR

 

Enumerate any five responsibilities of a consumer under the Consumer Protection Act, 2019.

Q.10 State any five regulatory functions of the Securities and Exchange Board of India.           (5 marks)

Q.11 In an interview with a leading news channel, Mr. Rakesh Kwatra, CEO of ‘Get My Job” has suggested that the Companies which want more and more people to apply for jobs in their organisation should make the process of applying for jobs easier and candidate friendly. It is for this reason, he said, that most progressive companies today have a short application process. He

also said that the application form filled by the candidate is very important as it is the information supplied in the application forms, which helps the manager in eliminating unqualified or unfit job seekers. The company can create a mechanism that attempts to measure certain characteristics of individuals like aptitude, manual dexterity, and intelligence to personality. The candidate may then be called for an in-depth conversation to evaluate their suitability for the job.

(a) Name the process and steps in the process of identifying and choosing the best person out of a number of prospective candidates for a job discussed above.

(b) Also explain the next three steps in the process which can be subsequently performed by the company.                                                                                                                                        (5 marks)

Q.12 Vedansh Limited has a share capital of `10,00,000 divided into shares of `100 each. For expansion purpose ,the company requires additional funds of ` 5,00,000. The management is considering the following alternatives for raising funds :

Alternative 1: Issue of 5000 Equity shares of `100 each

Alternative 2: Issue of 10% Debentures of `5,00,000

The company’s present Earnings Before Interest and Tax ( EBIT) is `4,00,000 p.a. Assuming that the rate of Return of Investment remains the same after expansion, which alternative should be used by the company in order to maximise the returns to the equity shareholders. The Tax rate is 50%. Show the working.                                                                                                                                         (5 marks)

 

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 Sample Paper

No. of Questions:  39                                                                                                                              Roll No.

 

Pre-Board-1  EXAMINATION (2022-23)

Practice paper

CLASS: XII

SUBJECT: BUSINESS STUDIES

TIME: 03 HOURS                                                                                                                         M.M. : 80

 

General Instructions:

·         Answers to questions carrying 1 mark may be from one word to one sentence.

·         Answers to questions carrying 3 marks may be from 50-75 words.

·         Answers to questions carrying 4-5 marks may be about 150 words.

·         Answers to questions carrying 6 marks may be about 200 words.

·         Marks of the questions are cited against them.

·         Read the question paper very carefully before attempting questions.

 

Q. No.

Multiple Choice Questions

Marks

allocated

1.        

Rishabh joined an entertainment company Avtaarish, as a creative head. As a manager looking after the creative unit of the company, one of the functions he has to perform is the process of organizing. Which step of the process will he need to perform after identifying and dividing the work that has to be done in accordance with previously determined plans?

(a)  Identification and division of work                                                      

(b)  Departmentalization            

(c)   Assignment of Duties

(d)  Establishing Reporting Relationships

(1)

2.        

Twinkle Stars’ is a well-known resort for organising parties, especially for children. However, in past 6 months its popularity has reduced considerably as a new resort with better ambience and facilities has opened within its vicinity. Name the related feature of business environment which has influenced the business of ‘Twinkle Stars’ adversely. Branches                          

(a)  Totality of external forces

(b)  Dynamic nature

(c)   Interrelatedness             

(d)  Uncertainty

(1)

3.        

As the span of management increases in an organization, the number of levels of management in the organization:

(a)   Increases

(b)  Decreases

(c)   Remain unaffected

(d)  None of the above

(1)

4.        

In order to boost and double India’s export of goods and services to over USD 1,000 billion by 2025, it is important to lower effective corporate tax rate, bring down cost of capital and simplify regulatory and tax framework. Identify the related dimension of business environment.

(a)  Social dimension and Legal dimension

(b)  Technological dimension and Political dimension

(c)   Political dimension and Social dimension

(d)  Economic dimension and Legal dimension

(1)

5.        

Successful management ensures that :

 

(a)   Goals are achieved with least cost

(b)  Timely achievement of goals

(c)    Both of the above

(d)  None of them

 

(1)

6.        

‘Yo Tummy’ began its business by offering the classic combo of hamburgers and fries. But over time, their customers wanted healthier foods, so ‘Yo Tummy’ responded and began offering healthy alternatives such as salads, fruits, wraps and oatmeal. If ‘Yo Tummy’ hadn’t responded, they may have lost customers that wanted to eat healthier foods. The above case highlights one of the points related to the importance of business environment and its understanding by managers. Identify it.

(a)   It helps in coping with rapid changes.

(b)  It helps in improving performance.

(c)    It helps the firm to identify threats and early warning signals.

(d)  It enables the firm to identify opportunities and getting the first mover advantage.

(1)

7.        

Airlines will be able to offer the benefit of lower pricing to customers on sectors/routes due to the decision of the civil aviation ministry to remove price caps from August 31, 2022. This can help an airline to do better performance if they take early decisions regarding future courses of action after understanding and doing analysis. Which importance of business environment and its understanding by managers is not highlighted above:    

(a)  It helps in improving performance                       

(b)It helps in assisting in planning and policy formulation

(c) It helps in tapping useful resources

(d) It enables a firm to identify opportunities and get first mover advantage.   

(1)

8.        

Alokit a mobility platform is in the process of laying off 400-500 employees in a move aimed at driving cost efficiency. Which objective of management will the firm not be able to achieve by carrying out this process.

(a)   Efficiency

(b)  Social

(c)   Profit

(d)  Survival

(1)

9.        

Radhika started a home cooked food delivery Dabba service. Her mother, who is a great cook, decided to help her. They relied on friends and family for orders and then on word of mouth. As a step in the process of ensuring that activities are performed as per her plan of supplying healthy, good quality, reasonable food and earning profit, she decided to keep both qualitative and quantitative benchmarks towards which she would strive to work. A function of management is being discussed above. An important characteristic of this function of management is :

(a)   It is the first function of management          

(b)  It is the last  function of management     

(c)   It is both forward looking and backward looking.

(d)  It is required only in business organizations.

(1)

10.    

Raman and Vasudev were two employees who were embezzling an import-export company in Varanasi where they were working. The finance manager of the company Sampat Singh became suspicious of the two employees when he realized that their activities were not being performed as per the plans. He installed a software program that could secretly log every single stroke of the suspects’ computer keys and send an encrypted email report to the Cyber police. The police were able to catch the two dishonest employees red handed and arrest them. Identify the function of management being discussed above.

(a)   Staffing 

(b)  Coordination

(c)   Controlling

(d)  Organizing

(1)

11.    

Name the outcome of the function of management which includes designing of roles to be filled by suitably skilled people and defining the inter relationship between roles so that ambiguity in performance of duties can be eliminated.                   

(a)   Organization structure

(b)  Delegation of authority

(c)   Decentralization

(d)  Controlling

(1)

12.    

Statement-I Transportation helps in creating time utility and warehousing helps in creating place utility.

Statement-II The process of classification of products into different groups on the basis of their important characteristics is known as standardization. Choose the correct option from the options given below:

              

(a)   Statement I is true and II is false

(b)  Statement II is true and I is false

(c)   Both the statements are true

(d)  Both the statements are false

(1)

13.    

Delegation is the process of sharing the “Authority” and “Responsibility”.

(a)  At two Level          

(b)  At three level        

(c)   At multiple level

(d)  Authority and Responsibility cannot be shared   

(1)

14.    

Which of the following is a financial incentive?

 

(a)   Status

(b)  Perquisites

(c)   Job Security                           

(d)   Job enrichment

(1)

15.    

One of the important decision areas under the marketing function of …………………….. is managing inventory.

(a)   Branding

(b)  Pricing

(c)   Promotion

(d)  Physical Distribution

(1)

16.    

When was NIFTY (National Stock Exchange Fifty) established?

(a)   1992

(b)  1994

(c)   1998

(d)  None of the above

(1)

17.    

One of the following is considered to be an extension of the marketing concept, which apart from customer satisfaction pays attention to ethical and ecological aspects of marketing. Identify the concept.

(a)   Product Concept

(b)  Production Concept

(c)   Selling Concept

(d)  Societal Marketing Concept

(1)

18.    

While the product costs set the lower limits of the price for a product, the upper limit of price which a buyer would be prepared to pay is decided by:

(a)   Utility and demand of the product

(b)  The marketing manager of the firm

(c)   The Government

(d)  The competitors of the firm

(1)

19.    

The mandatory detail that an investor has to provide to the broker at the time of opening a D-mat account is _____.

(a)  Date of Birth and Address

(b)  PAN card

(c)   Bank Account Details

(d)  Residential Status

(1)

20.    

A company manufacturing motorcycles and cars should have separate divisions for both, headed by separate divisional managers, separate plans and resources. Identify the principle with the help of this example.

(1)

21.    

Staffing is searching for prospective candidates?(True or false)

(1)

22.    

Labeling involves putting identification marks on the package?(True or False)

(1)

23.    

Buying standardized products is a consumer responsibility? (True or false)

(1)

24.    

Right to be informed says that the consumer has the right to acquire knowledge and be well-informed throughout his life.(True or False)

(1)

25.    

Identify the most crucial step in planning process?

(1)

26.    

Define Demutualization.

(1)

27.    

Which of the following statements about Advertising is incorrect??

(a)   It is a personal form of communication

(b)  It is a paid form of communication

(c)   It is a mass selling technique.

(d)  It is inflexible as the message can’t be adjusted to the needs of the buyer.

 

(1)

28.    

Mrs. Ahilya Pasi is the Principal of a prestigious school in New Delhi. The school has a vacancy of a headmistress/headmaster of the junior wing of the school. The senior teachers of the school have the opinion that only internal candidates should be considered for this post. However, Mrs. Pasi and the management would like to invite applications from external sources too.

 

Briefly explain any three justifications the management can provide to convince the staff for inviting applications of external candidates for the vacant post.

(3)

29.    

Explain “Critical point control” with respect to Analyzing deviations, a step in the process of controlling. Give a suitable example.

OR

Explain “Management by exception” with respect to Analyzing deviations, a step in the process of controlling. Give a suitable example.

(3)

30.    

State any three objectives of the Securities Exchange Board of India.

Or

 State any three functions performed by the Stock Exchange.

(3)

31.    

In Vishal Steel several initiatives have been taken to further improve the motivation levels of employees through designing jobs that include greater variety of work content, providing certain stability about future income and work, providing fringe benefits like housing, medical aid, etc., allotment of shares in line with various incentives.

Identify and briefly explain the incentives being given by the organization to the employees.

(4)

32.    

Enumerate any four benefits of the process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased.

OR

Name the mechanism that attempts to measure certain characteristics of individuals in the process of identifying and choosing the best person out of the number of prospective candidates for the job. Enumerate any three of its types.

(4)

33.    

State any four barriers to communication which are concerned with problems and obstructions in the process of encoding and decoding the message into words or impressions.

OR

State any four barriers to communication which are related to authority relationships, rules and regulations of the company

(4)

34.    

State any four factors affecting the financial decision that is concerned with raising of finance using shareholders’ funds and borrowed funds.

(4)

35.    

Briefly explain any three of the following techniques of Scientific Management as given by F.W. Taylor:

a. Method study

b. Functional foremanship

c. Standardization

d. Differential piece wage system

 

 

 

OR

 Briefly explain any three of the following principles of management given by Henry Fayol:

 a. Unity of command

b. Equity

c. Remuneration

d. Initiative

 

 

 

 

 

(6)

36.    

‘The pros and cons of each alternative need to be weighed.’ Name and briefly explain the logical steps in the process of planning which are followed by a manager before performing the step highlighted in the above statement.

OR

Briefly explain the next three steps in the process of planning which the manager will have to have to follow after using presumption about what might happen in the future.

 

 

 

(6)

37.    

Jojo and Jojo is a company known for its consumer business of baby oil and bandages, but many people do not know that the company also runs a medical device and diagnostics business, as well as a pharmaceutical company. With more than 1,80,000 employees worldwide the company has chosen to share decision making authority with lower levels and place it nearest to the point of action. Therefore the response does not take time. This 6 propagates the belief that people are competent, capable and resourceful who can get a chance to prove their abilities. And enables the company in identifying those executives who have the necessary potential to become dynamic leaders, so that the checking required on decisions taken by lower levels of management is the least. This makes it possible to evaluate performance at each level and each department can be individually held accountable for their results.

 By quoting the lines given above identify and briefly explain the benefits of the concept discussed above.

 

 

 

 

(6)

38.    

Choco Ltd. offers a wide variety of chocolate products. It has an action program of not selling its products by their generic name but under different names like Choco-silk bar, Choco-Munchy and Choco-crunchy etc. for different customer segments. All these names have great popularity and acceptability in the markets. As the company policy the products were offered at reasonable and affordable prices for targeting a mass customer base. During the festive season the company launched a massive promotional campaign to increase its revenue and achieve its communication objectives. The company introduced free gifts for the customers. Their on-ground sales team delivers the product not only to the departmental stores but also to small shops, so that all segments of customers can easily get the products. They also provide information and support services to customers to ensure repeat sales.

 

From the viewpoint of the management function, briefly explain any four activities of marketing which the firm will be involved in, apart from the above-mentioned ones it's already performing.

 

 

 

(6)

*** all the best ***


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