PREBOARD: 2023-2024

Class – XII
Subject – Business Studies
F.M: 80 TIME: 3 HOURS

General Instructions:
● Please check that this question paper contains _9__ printed pages.
● Please check that this question paper contains _34__ questions.
● Please write down the serial number of the question before attempting it.
● Write your name, class, section and roll number clearly on top of the
answer sheet.
● 15 minutes has been allotted to read the question paper.
● The question paper will be distributed at 8.45 am. From 8.45 am to 9.00 am,
the students will read the question paper and not write any answer on the
answer book during this period. Writing time is from 9.00 am – 12.00 pm.

Questions 1-20 are of one mark each

Answers to questions carrying 3 marks may be from 50 to 75 words
Answers to questions carrying 4 marks may be 150 words
Answers to questions carrying 6 marks may be about 200 words

1. Darshit has been working with PQR Ltd. for past five years. The company recently
offered him car allowance. Identify the kind of financial incentive offered by PQR
Ltd. to Darshit.
(a) Pay and allowance
(b) Bonus
(c) Perquisites
(d) Co-partnership
2. ‘Temptations’ is a food joint in Imperial Mall in Bengaluru. It is becoming popular
among students and working people due to healthy, on-the-go dishes on its menu
like ‘Paneer Wrap’, ‘Chickpeas Salad’, ‘Grilled Sandwiches’ etc.
It has now decided to open two new branches in other parts of Bengaluru. Which
financial decision has been discussed in the above case?
(a) Long-term investment decision
(b) Short-term investment decision
(c) Dividend decision
(d) Financing decision

BUSINESS STUDIES/PREBOARD 23-24/XII/PAGE -1OF 7

3. ___________ test measures the existing skills of an individual.
(a) Aptitude
(b) Interest
(c) Personality
(d) Trade
4. HCL Ltd. is a company producing IT services. The company’s profits are enough
for the survival and growth. The management of the believes that a satisfied
employee creates a satisfied customer, who in turn creates profits that lead to
satisfied shareholders. So, it pays competitive salaries and perks to its all
employees. All the employees are happy working in the organization as it provides
opportunity for their personal growth and development. The company has a strong
sense of social responsibility. It has set up an engineering college in which one-
third of the students are girls to whom the company gives 50 per cent scholarship.
Identify the objective(s) fulfilling by the management of HCL Ltd.
(a) Organisational
(b) Social
(c) Personal
(d) All of these
5. Shweta Ltd. was engaged in the business of manufacturing auto components.
Lately, its business was expanding due to increased demand for cars. The
competition was also increasing. In order to keep its market share intact, the
company directed its workforce to work overtime. But this resulted in many
problems. Due to increased pressure of work, the efficiency of workers declined.
Sometimes, the subordinates had to work for more than one superiors. The
workers were becoming indisciplined. The spirit of teamwork, which had
characterised the company previously, had begun to wane.
Identify the principle(s) of management (as given by Henry Fayol) which are being
violated in the given case.
(a) Unity of Command
(b) Discipline
(c) Espirit de Corps
(d) All of these
6. Even after opening up of Indian economy, foreign companies found it extremely
difficult to cut through the bureaucratic and red tapism in government offices. The
discourages them from investing in India.
Identify the dimension of business environment mention in above para.
(a) Political environment
(b) Economic environment
(c) Social environment
(d) None of these
7. Ravi, a Worker, is given a target of assembling two computers per day. Due to his
habit of doing things differently, an idea struck him which would not only reduce
the assembling time of computers but would also reduce the cost of production of
the computers. Instead of appreciating him, Ravi’s supervisor ordered him to
complete the work as per the methods and techniques decided earlier as nothing
could be changed at that stage.
Name the limitation of the planning function of management discussed here.
(a) Planning reduces creativity
(b) Planning creates rigidity
(c) Planning is time-consuming
(d) Planning involved huge costs
Or
Name the term for ‘obligation of a subordinate to perform a assigned duty
properly’.

BUSINESS STUDIES/PREBOARD 23-24/XII/PAGE -2OF 7

 (a) Accountability
(b) Responsibility
(c) Authority
(d) Delegation
8. The _____________ concept of marketing places more importance to consumer
welfare instead of consumer satisfaction.
(a) Product
(b) Selling
(c) Marketing
(d) Societal
9. Which of the following is not a function of Non-government Organisations (NGOs)
for enhancing Consumer Protection?
(a) Accelerating consumer awareness
(b) Filling suits, complaints on behalf of consumers
(c) Solving personal and marital problems of consumers
(d) Collecting data on different products and testing them
10. ___________ is the agency which facilitates the liquidity of money market
instruments.
(a) Depository Participant (DP)
(b) National Stock Exchange (NSE)
(c) Discount Finance House of India (DFHI)
(d) None of these
Or
Which source of fund(s) dilutes management’s control?
(a) Debentures
(b) Equity
(c) Both (a) and (b)
(d) None of these
11. Match the work performed by the specialist foremen under functional foremanship
in Column I with the job assigned to them in Column II.
Column I Column II
(A) Inspector (i) Ensures proper working
condition of tools and machines
(B) Repair Boss (ii) Ensures discipline
(C) Disciplinarian (iii) Check quality of work
(a) (iii), (i), (ii)
(b) (iii), (ii), (i)
(c) (ii), (iii), (i)
(d) (ii), (i), (iii)
12. ____________ refers to a process to a process of influencing other people to
work willingly for group objectives.
(a) Leadership
(b) Supervision
(c) Communication
(d) Motivation
13. Hemant is planning to set up a manufacturing unit for manufacturing eco-friendly
lighting solutions. He has decided to market his products through the conventional
channel of distribution, involving wholesalers and retailers. Identify the channel of
distribution being adopted by him.
(a) Zero level channel
(b) One level channel
(c) Two level channel
(d) Three level channel

BUSINESS STUDIES/PREBOARD 23-24/XII/PAGE -3OF 7

14. Kriti Limited has chalked out an action plan in order to increase its market share in
the international market by 20% in the next one year. The action plan contains the
details about how the production levels will be increased, promotional activities
will be carried out and so on. Which marketing function being described in the
given lines.
(a) Gathering and analysing market information
(b) Marketing planning
(c) Product designing and development
(d) Packaging and labelling
15. An organisation structure establishes relationships between _____________
(a) organisation and environment
(b) people, work and resources
(c) organisation and society
(d) suppliers and customers
16. Square Hat launched an online learning portal with its operations in 300 towns
and cities for all levels of school education. Square Hat follows a two-step
sequence while expanding to a small town. First, it provides training to teachers
and their delivery partners. Second, it focuses on building scale in operations and
increasing the portal’s reach to a larger base of students. Identify the type of plan
being described in above lines.
(a) Method
(b) Strategy
(c) Programme
(d) Procedure

17. Keshav Enterprises Ltd. was in need of some technical and professional personnel.
It approached a well established university in the city to recruit qualified personnel.
Tanvi, Gaurav, Vaani and Sudhir were selected for various vacancies in the
organisation. On the first day of joining, the employees were given a brief
presentation about the company and were introduced to their superiors,
subordinates and colleagues. The company felt the need to increase the employees
skills and abilities and develop a positive attitude among them. For this, the
company initiated training and development of its employees. After the employees
have undergone training, their performance appraisal is done.
‘It approached a well established university in the city to recruit qualified personnel.’

What is the advantage of this type of recruitment?

(a) Simplified process of selection and placement
(b) Motivates the employees to improve their performance
(c) Provides wider choice and brings fresh talent in the organisation
(d) Time and cost-effectiveness
18. Read the following text and answer question no. [18 to 20] on the basis of the
same:
Kiran is working as an assistant to the Finance Manager in Sunbeam Ltd. She is
pursuing CA course from ICAI. She had successfully completed her intermediate
exam. On clearing CA final exam, she was awarded the designation of a Chartered
Accountant. She was, thus, promoted to the post of Finance Manager of northern
division of the company. Soon, she gained recognition in the organisation as she
applied the knowledge acquired during her education in a personalised and skilful
manner. She integrated the activities of her department with other departments of
the organisation, viz. Production, Sales and Human Resource, due to which
performance of the company got better day-by-day.

BUSINESS STUDIES/PREBOARD 23-24/XII/PAGE -4OF 7

18 Which characteristic(s) of profession of Chartered Accountant has been discussed
above?
(a) Professional association
(b) Ethical code of conduct
(c) Restricted entry
(d) All of these

19
‘Kiran is promoted as a Finance Manager of the northern division of the company.’
Which of the following is not a function of this level of management?
(a) Ensures that her department has the necessary personnel
(b) Analyses the business environment and its implication for the
survival of the firm
(c) Interprets the policies framed by the higher management
(d) Assigns necessary duties and responsibilities among employees

20 1
‘She applied the knowledge acquired during her education in a personalised and
skilful manner.’ Identify the nature of management being reflected here.
(a) Management as a science
(b) Management as an art
(c) Management as a profession

21. 3
Alpha tonics is a progressive company which has achieved new records in the field
of medicines. Recently the company decided to go for a major shift in policy
decision by handing over the decision making authority to the lower most level of
employees. For this the company went for a thorough planning. Within four months
the positive results of this major policy decision was recognizable. The employees
felt a lot of development in their skill of taking first step to manage things on their
own. Some major newspapers also covered this development. The production of
the company increased. The company’s top management could now focus on new
areas of innovation as the employees turned more reliable.
One day it so happened that the company’s manufacturing branch in south could
not fulfil even half of its production target and the operations manager was held
answerable for the assigned target. He was called in the office. When he was
questioned it was found that his right to command the workers was insufficient and
it should have been more to create results. The management decided to listen to
him and he was given more power. When he went to the shop floor he told the
workers that the standard of behaviour of the workers should come from the official
rules and procedures.
Which principle of management has been related to in the two paragraphs of the
case?

22. 3
Shreemaya Hotel in Indore was facing a problem of low demand for its rooms due
to off−season. The managing Director (MD) of the hotel, Mrs. Sakina was very
worried. She called upon the marketing Manager, Mr. Kapoor for his advice. He
suggested that the hotel should announce an offer of ‘3 Days and 2 nights hotel
stay package’ with free breakfast and one-day religious visit to Omkareshwar and
Mahakaleshwar Temples. The MD liked the suggestion very much. Further a
promotional tool which can be used by the hotel through which large number of
prospective pilgrimage tourists all over the country and abroad can be reached,

BUSINESS STUDIES/PREBOARD 23-24/XII/PAGE -5OF 7

 informed and persuaded was used.
The hotel saw a favourable response within few weeks.
Identify and explain the promotional tools used in the above situation.

23. Saurabh decided to start a chocolate manufacturing business. He set the target of 3
earning 10% profit on sales in the first year. As a good business, 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 Saurabh that are related to the
process of the functions of management.
24. Assurance Ltd. deals in the sale of office furniture. They source the finished 3
products from reputed brands who give them four to fix months credit. Seeing the
demand for electronic items on a rise, they are planning to market these items by
opening outlets throughout India. For this, they have decided to join hands with a
Japanese electronic goods manufacturer.
Identify and briefly explain the two factors that would affect the fixed capital
requirement of Assurance Ltd. as discussed above.
25. Sahil is facing a situation of overstaffing in his organisation. This would necessitate 4
employee removal or transfer elsewhere. Which stage of staffing has not been
performed properly by him? Explain.
Or
Explain briefly the psychological barriers to effective communication.
26. Keshav is of the view that marketing objectives can be achieved through product 4
improvements. Explain the marketing management philosophy followed by him.
‘Pricing of a product is an important and effective competitive weapon in marketing
which depends upon various factors.’ Explain any four such factors.
27. Sita Furnishings are manufactures of different types of home decore items. The 4
company choose to diversify its operations to improve its growth potential and
increase market share. As the project was important, many alternatives were
generated for the purpose and were thoroughly discussed amongst the members of
the organisation. After evaluating the various alternatives, Tarun, the Managing
Director of the company decided that they should add ‘Office Furnishings’ as a new
line of business activity.
(a) Name the framework, which the diversified organisation should adopt to
enable it to cope with the emerging complexity. Give one reason in support
of your answer.
(b) Also, state any two limitations of this framework.
28. Disha Ltd. incurred heavy expenditure on scientific research and development to 4
produce energy efficient bulbs. It discovered a new technique which produced an
energy efficient bulb with a life of almost ten times the standard bulbs. It was
effectively launched in the market after understanding the business environment.
Explain the importance of understanding the business environment in management.
29. Mr. Krishanan heads the Human Resource Department in a firm, manufacturing 4
electrical goods, which is facing a problem of high employee turnover. The CEO of
the company has invited suggestions from him for retaining the talented employees
and reducing employee turnover. Mr. Krishanan recommends that the good
employees must be rewarded in a way that it creates a feeling of ownership among
them and at the same time makes them contribute towards the growth of the
organisation.

BUSINESS STUDIES/PREBOARD 23-24/XII/PAGE -6OF 7

 (a) Identify the incentive and state its type which has been suggested by Mr.
Krishanan to the CEO of the company.
(b) Also, explain any two other incentives of the same category.
30. ‘Money market is essentially a market for short-term funds.’ In the light of this 4
statement, state any four features of money market.
31. Explain the following techniques of scientific management: 6

Or
Explain the importance of management in today’s fast changing scenario.
32. Mention the proposed benefits of the New Consumer Protection Act, 2019. 6
OR
‘Popular’ is a pressure cooker manufacturing company. It performs various activities
like market analysis, product designing or merchandising, packaging, warehousing,
branding, pricing, promotion and selling. It maintains good customer relations
through various follow up activities. It helps the company in procuring repeat sales
orders.
(a) Name the concept related to the activities mentioned in the above
paragraph.
(b) Explain any three features of the concept identified in part (a).
33. BTW Ltd. wants to raise Rs. 25,00,000 for its new project. The management is 6
considering following capital structure mix to raise this amount:
Alternatives
Capital Structure
I II III
Equity @ Rs. 100 each Rs. 25,00,000 Rs. 20,00,000 Rs. 5,00,000
Debt — Rs. 5,00,000 Rs. 20,00,000
Other details are as follows:
Earning before Interest and Tax Rs. 3,00,000
Rate of interest on debentures 8%
Tax rate 30%
Evaluate, which of the above alternatives is most beneficial for the equity
shareholders? Show your working notes clearly.
Or
Lalita wants to buy shares of Akbar Enterprises, through her broker Kushvinder.
She has a Demat Account and a bank account for cash transactions in the
securities market. Discuss the subsequent steps involved in the screen-based
trading for buying and selling of securities in this case.
34. Describe Maslow’s Need Hierarchy Theory of motivation. 6
Or
Explain any four advantages of using external sources of recruitment, Also, explain
any two sources of external recruitment for skilled workers.
---------------------------------------------------------------------------------------------------------------------------

BUSINESS STUDIES/PREBOARD 23-24/XII/PAGE -7OF 7