CLASS:- XII

BUSINESS STUDIES
SAMPLE PAPER (2023-24)
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. Answer 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 Total Clean, a leading Vacuum cleaner Company recently introduced a robotic 1

vacuum cleaner that sweeps, mops and disinfects surfaces within no time. Due to
this is a shift in demand from ordinary vacuum cleaners to robotic vacuum cleaners.
The dimension of business environment discussed is :
(a) Technological (b) Political (c) Economic (d) Legal
2 Name the process of working with and through others to effectively achieve 1
organizational objectives by efficiently using limited resources in a changing
environment.
(a) Management (b) Planning
(c) Organising (d) Controlling
3 Which characteristic of business environment is highlighted when general business 1
conditions differ from country to country, region to regions and place to place.
(a). Uncertainty (b). Complexity (c). Inter-relatedness (d). Relativity
4 Archana is a pure vegetarian. She went to a popular food chain shop and asked for a 1
packaged ‘Veg-Biryani’. While eating the same she noticed that it had some non-
vegetarian
content. Neither the advertisement, nor the label on the package showed that the
product
had non-vegetarian content. Name the consumer right under which Archana can claim
for
compensation as per the provisions of Consumer Protection Act, 1986.
5 Fayol stressed on scientific selection of employees and once they are selected they 1
should be given a sense of assurance of safety of their jobs. It will make them more
effective as they are not having a fear of losing their jobs. They can better
concentrate on their works.
Which principle of management is concerned with the above statement?
(a) Order (b) Initiative (c) Stability of tenure of personnel (d) Espirit De corps
6 ’Rule of thumb’ refers to 1
a)Use of personal judgement in handling management issues
b) Adopting a hit and trial approach to resolve management problems
c) Both a)and b) given above
d) None of the above
7 As end result of organization function, a structure gets created automatically. 1
(a) True
(b) False
(c) Partially True
(d) Partially False
8 Which type of organization structure has a likely disadvantage of pursuing 1
departmental interests at the cost of organizational interests leading to creation of
functional empires wherein importance of a particular function may be over-
imphasised?
(a). Formal organisational structure
(b). Functional organisational structure
(c). Divisional organisational structure
(d). Informal organisational structure
9 Having transferred 3,000 Kirana stores across eight cities to virtual super markets, 1
the start-up Astro Bizz further decided in advance, to collaborate with 10,000-
15,000 store owners in top 30 cities of the country by the end of this year. The
company has set its eye on digitizing over 1,00,000 Kirana Stores over next 18-24
months. Identify the step in the process of one of the functions of management
discussed above.
(a). Setting objectives
(b). Evaluating alternative
courses (c). Selecting an
alternative
(d). Identifying alternative courses of actions
10 Assertion(A): While authority is delegated, responsibility is imposed, accountability is 1
assumed.
Reason(R): Authority can be delegated by a manager to a subordinate, which means
granting of authority to subordinate to operate within prescribed limits. Responsibility
is the obligation of a subordinate to properly perform the assigned duty. Accountability
implies being answerable for the final outcome.
Choose the correct option:
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason (R) is false.
(d) Assertion (A) is false and Reason (R) is true.
11 Higher dividend per share Is associated with:- 1
A • High earnings, high cash flows, stable earnings and lower growth opportunities
B • high earnings, low cash flows, stable earnings and lower growth opportunities
C • Lower earnings, high cash flows, stable earnings and lower growth opportunities
D • high earnings, low cash flows, stable earnings and Higher growth opportunities
12 These decisions pertain to quantum of finance to be raised from various long-term 1
sources. It helps in deciding the proportion of owner’s funds and borrowed funds to
be maintained by a firm in its capital structure.
Which financial decision is discussed in the above statement?
(a). Capital budgeting decision (b). Investment decision (c). Dividend decision (d).
Financing decision
13 …………………………………. is basically an instrument of short-term borrowing 1
by the Government of India maturing in less than one year. It is also known as Zero
Coupon Bond.
(a). Treasury Bill (b). Call money (c). Commercial paper (d). Certificate of Deposit
14 Financial blueprint of an organisation’s future operations is concerned with which 1
concept:
(a). Financial management (b). Financial planning (c). Planning as one of the
functions of management (d). Financial leverage
15 A financial market is a market for the..........................................of financial assets. 1
(a). Creation (b). Exchange (c). Creation and exchange (d). None of these
16 Maintenance services, after sales services and handling customer complaints are 1
very effective in bringing repeat sales from customers and developing brand loyalty
for a product by maximizing customer satisfaction.
The function of marketing discussed above is
(a).Pricing of product (b). Warehousing
(c). Customer support services (d). Branding
17 Toothpastes come in tubes which are thrown by the consumers after the toothpastes 1
are utilized.
Tube of toothpastes represents which level of packaging?
(a). Primary package (b). Secondary packaging
(c). Transportation packaging (d). Speciality packaging
18 Companies having Lower growth opportunities usually declare higher dividend. 1
True/False.
19 Name any two details that need to be provided by the investor to the broker while 1
filling a client registration form.
20 Manav always went to a specific shop to buy all consumable and non-consumable 1
goods. In this shop variety of products of different brands were displayed nicely and
the sales person available also gave good sales presentation if required. But this shop
 was quite far off from his residence. His friend Aditya always wondered why Manav
wasted so much time in going to that shop where as there were many big brand
shops situated near his residence having consumable and non-consumable goods.
Aditya asked Manav the reason of going to that particular shop. Manav told that he
was exercising one of his rights which he could not exercise in nearby by brand
shops.
State consumer’s right which Manav had exercised.
(a). Right to safety (b). Right to seek redressal (c) Right to choose (d). None of these
21 Explain in any three features of management. 3
Or
Explain in brief any three features of coordination.
22 It is deciding in advance what to do and how to do? It is one of the basic managerial 3
functions. It requires that before doing something, the manager must formulate an
idea of how to work on a particular task. This function is closely connected with
creativity and innovation. It seeks to bridge the gap between where we are and
where we want to go and is performed at all levels of management. In spite of this
the function of management referred above has a number of limitations. Identify the
function and Explain any two importance of it.
23 The production manager asked the foreman to achieve a target production of 200 units 3
per day, but he doesn’t give him the authority to requisition tools and materials from
the stores department. Can the production manager blame the foreman if he is not able
to achieve the desired target? Give reasons.
OR
What is delegation? Also, discuss the elements of delegation.
24 Stock exchange acts as a regulator of the securities market. It creates a continuous 3
market where the securities are bought and sold. It gives investors the chance to
disinvest and reinvest. Through this process of disinvestment and reinvestment,
savings get channelized into their most productive investment avenues.
To ensure that the investing public gets a safe and fair deal in the market, the
membership of the stock exchange is well regulated and its dealings are well defined
according to the existing legal framework. It also ensures wider share ownership by
regulating new issues, better trading practices and taking effective steps in educating
the public about investments.
Various functions performed by the Stock Exchange are discussed in the above
paragraph.
By quoting the lines from the above paragraph, state any four functions of stock
exchange.
OR
Amir Turhan, the Managing Director of 'Pusula Ltd.' and Yaman, the Finance Manager
were discussing about the avenues of investing the idle funds of the company. Amir
Turhan was of the opinion that money should be invested in the capital market
whereas Yaman, being more conservative, feels that It would be better if the
investment was made in money market. Since the economy was buoyant, the
Managing Director convinced Yaman that they should take advantage of it and invest
in the capital market to get good returns. Ultimately it was decided to invest the idle
funds in the capital market.

(a) What kind of instruments should the company buy?

 (b) Why is the capital market expected to give a better return in a buoyant economy?
State the reason.
(c) Why and how safe are the securities in this market as compared to money
market?
25 Explain how Management is a Science? 4
26 XYZ Ltd. a book publishing house published books on coding language for kids 4
before any other publishing house could print it. What advantage will this
publishing house get? Explain it. Also explain any three other merits of the concept so
identified.
OR
Explain some aspects of political environment.
27 It is one of the functions of management which seeks to bridge the gap between 4
where we are and where we want to go. It is closely connected with creativity and
innovation. Identify and define the function of management discussed in the above
statement and also explain in brief first four steps involved in its process.

28 Explain in brief the organizing process. 4

29 Explain in brief any four functions of stock exchange. 4
Or
State any four regulatory functions of SEBI.
30 Explain in brief any four consumer rights. 4
31 Raj and Simran are both qualified eye surgeons and good friends. After obtaining a 6
certificate of practice, they decide to persue a career of their own choice. Raj starts an
eye care centre in the city whereas Simran joins a government hospital in a small
village. They meet after a long time in a party. Raj invites Simran to visit his eye care
centre and she accepts his invitation. She observes at his clinic that there is a fixed
place for everything and everyone and it is present there so that there is no hinderance
in the activities pf the clinic. Also, Raj always tends to replace I with ‘We’ in all his
conversations with the staff members. Later on Raj shares with her
that he always deals with lazy staff sternly to send the message that everyone is equal
in his eyes.
In context of the above case:
Identify and explain the various principles of management that Raj is applying for the
successful management of his eye care centre.

32 Identify, why the requirement of Fixed Capital & Working Capital for a trading 6
concern are different from that of a manufacturing organization. Explain.
33 Shivam bought a pain relieving ointment after seeing it being displayed in the 6
chemist’s shop. The ointment tube was packed in a cardboard box. The tubes were
received by the chemist from the whole seller in corrugated boxes containing 20 units.
Identify and explain the different levels of packaging of the pain relieving medicine.
OR
XYZ Ltd. Had the business of manufacturing large varieties of FMCG products
including biscuits, squashes, rice, flour, shampoo, oil, nutritional supplements, etc. To
differentiate its product from that of its competitors, it decided to put a unique symbol
on all of its products and also got it registered. It also classified its various products on
the basis of use, quality, contents, etc.ch of any new product, the company also
undertakes market survey for the product’s feasibility.
Explain the three functions of marketing with reference to the above paragraph.
34 Explain in brief any six functions of marketing management. 6
Or
What do you mean by price as an element of marketing mix? Explain in brief any
five factors determining pricing.