Page 1 Sample Paper 1 Business Studies Class 12
Sample Paper 1
Business Studies
Class XII Session 2023-24
Time: 3 Hours Max. Marks: 80
General Instructions:
i. Question paper comprises four sections – A, B, C and D. There are 34 questions in the question
paper. All questions are compulsory.
ii. Section A – From question 1 to 20 are MCQs of 1 mark each.
iii. Section B – Question no. 21 to 24 carry 3 marks each. Answer to each question may be from 50 to
75 words.
iv. Section C contains Q.25 to Q.30 carry 4 marks each. Answers to the questions may be about 150
words.
v. Section D – Question no. 31 to 34 carry 6 marks each. Answers to the questions may be about 200
vi. Attempt all parts of the questions together.
Section : A
1. SEBI recently called for information and issued a show cause notice to NSE and its 14 officials seeking
explanation on the Preferential Access allegations at the Exchange’s Co-location facility. State the function
that SEBI performed by doing so.
(a) Developmental function
(b) Protective function
(c) Regulatory function
(d) None of these
2. _______ is the process of influencing people to strive willingly for group objectives.
(a) Leadership
(b) Motivation
(c) Direction
(d) Selection
3. Which standardisation mark should be checked by Ms Vinita while buying mustard oil ?
(a) FPO
(b) Hallmark
(c) ISI
(d) AGMARK
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4. Which selection test aims at measuring the individual’s potential to learn new skills?
(a) Personality test
(b) Intelligence test
(c) Interest test
(d) Aptitude test
5. Which of the following statements is not true for stock exchange?
(a) It helps the company to float new issues.
(b) It provides liquidity and marketability to securities.
(c) It spreads equity cult.
(d) It contributes to economic growth.
6. The function(s) of stock exchange is/are:
(a) Contributes to economic growth
(b) Pricing of securities
(c) Safety of transaction
(d) All of these
7. Sonam bought a packet of chips from a local shopkeeper and found that the ingredients given on the label
were not legible. She complained about it to the company. The company sent a written apology stating
that they will make sure that existing packets are withdrawn from the market and new packets with legible
labels are soon made available.
State the consumer right which Sonam exercised.
(a) Right to be heard
(b) Right to seek redressal
(c) Right to consumer education
(d) Right to safety
8. ______ refers to a situation when a company is not able to meet its fixed financial obligations.
(a) Financial planning
(b) Financial leverage
(c) Financial risk
(d) None of these
9. Statement I : A company wants to establish a new unit in which a machinery of worth ` 50 lakh is
involved. Here in this case, investment decision is involved.
Statement II: Working capital involves the allocation of firm’s capital to long-term assets or projects.
Choose the correct option from the options given below:
(a) Statement I is true and Statement II is false
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(b) Statement II is true and Statement I is false
(c) Both the statements are true
(d) Both the statements are false
10. Statement I: A Stock Exchange contributes to capital formation and economic growth.
Statement II: ‘Prohibition of fraudulent and unfair trade practices in securities market’ is a development
function of Securities and Exchange Board of India (SEBI).
Choose the correct option from the options given below:
(a) Statement I is true and Statement II is false
(b) Statement II is true and Statement I is false
(c) Both the statements are true
(d) Both the statements are false
11. What does capital market consist of?
(a) Depositary participants
(b) Stock market
(c) Stock brokers
(d) All of these
12. Identify the communication which may take place between a superior and subordinate, a subordinate and
superior or among same cadre employees or managers.
(a) Formal communication
(b) Grapevine
(c) Informal communication
(d) Horizontal communication
13. The advantage of differential pricing accrue to the marketer due to:
(a) Packaging
(b) Labelling
(c) Branding
(d) Grading
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14. To set up and run a successful business it is not only essential to lay down the clear cut objectives but it
is also necessary to identify the different activities to be performed and develop relationship between the
physical and human resources.
Which function of Management is being referred to?
(a) Planning
(b) Directing
(c) Training
(d) Organising
15. Future Production Private limited, all the activities were divided into seven departments as Purchase,
Production, Marketing, Personnel, Finance, Accounting and Correspondence. The General Manager,
Saurabh Sharma, analysed and concluded that Marketing, Production and Finance were the departments
on which success of the business is dependent. Shortcomings in other departments would not affect much
success of the business. He also decided deviation tolerance limits to these three main departments. If
deviation goes beyond tolerance limits then only the same would be brought to the notice of Saurabh
Sharma.
Identify the relevant concepts of the function of management discussed above.
(a) Management by exception
(b) Critical point control
(c) Only (a)
(d) Both (a) and (b)
16. Samy started his business and focused mainly on customer’s demand and enriching their quality life. The
marketing philosophy being followed by him is:
(a) Production concept
(b) Product concept
(c) Societal concept
(d) Selling concept
17. Match the marketing philosophies in Column I with their main focus in Column II and choose the correct.
Column I Column II
A. Product concept (i) Production on a large scale
B. Production concept (ii) Enhancing quality of product
C. Marketing concept (iii) Customer satisfaction
(a) A - (ii), B - (iii), C - (i)
(b) A - (ii), B - (i), C - (iii)
(c) A - (i), B - (ii), C - (iii)
(d) A - (iii), B - (ii), C - (i)
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18. The source of recruitment which brings a flood of response is:
(a) Advertisement
(b) Labour contractor
(c) Employment exchange
(d) Placement consultant
19. Under _______ method of training, a trainee is put under the guidance of a master worker.
(a) Vestibule training
(b) Apprenticeship programme
(c) Job rotation
(d) Internship training
20. _______ function of management ensures that actual activities conform to planned activities.
(a) Controlling
(b) Planning
(c) Staffing
(d) Directing
Section : B
21. Mr. Harsith, a social activist, was concerned with the pollution caused by the use of polythene bags.
These bags are non-biodegradable and are a great threat for the water bodies and also adversely affect
the quality of soil. To ban the use of these bags, he filed a writ petition in the court.
The court also identified the threats caused by these bags and passed an order banning the use of these
bags as these bags are creating many environmental problems which affect the life of people in general
and society in general is more concerned about quality of life. The government decided to give subsidy
to jute industry to promote this business and innovative techniques are being developed to manufacture
jute bags at low rates with more innovation and better technology, GDP of country is expected to rise.
Identify the different dimensions of business environment by quoting the lines from the above particulars.
22. What is meant by the Functional Organisation Structure? Discuss its suitability.
O
“Authority can be delegated but accountability cannot.” Explain the statement.
23. Mr. Pachouri is the General Manager of Fast Life, a company manufacturing and selling speakers and
amplifiers. He manages 15 Departmental Managers who further handles around 200 employees each.
Mr. Pachouri allows all his managers to take their operative decisions but in some cases like if there is a
conflict between two departmental managers or there is an accident, then Mr. Pachouri immediately takes
control of the situation to ensure prompt and coordinated effort.
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(a) At which level of management is Mr. Pachouri working?
(b) State any two functions he would perform at that level.
24. Explain how management by exception helps in controlling process.
O
Explain the importance of interview in selection process.
Section : C
25. Name and discuss any four techniques of Scientific Management through which the best practices can be
kept and further refined to develop a standard that is to be applied throughout the organisation.
O
What is meant by coordination? Why is coordination important in an organisation?
26. How is training in an organisation beneficial ‘for employees’? State by giving any four reasons.
o
Distinguish between the term ‘training’ and ‘development’.
27. Goal Group of companies has three divisions namely Shoes, Garments and Home Decor items each headed
by their Divisional Managers respectively. It has the plans to enter a new venture that is related to the
Hospitality Industry. The company has done the SWOT Analysis and found that the business environment
seems favourable for this industry as the government is offering huge incentives for setting up of hotels
in the remote hilly areas to promote tourism there. The Chief Executive also knew that the company is
having sufficient funds to finance the project; they just need to add one more division, Hospitality, with a
new set of employees, to their existing structure to start the venture.
(a) What does the Chief Executive’s decision tell about the importance of Organising?
(b) Also, discuss three others points highlighting the importance of Organising.
28. Explain how principles of management:
(a) provides useful insight into reality
(b) helps in thoughtful decision-making
29. Identify and state the various elements of communication highlighted in the following cases
(i) Department ‘A’ has sent an encoded message to department ‘B’ through internet. What is the role
of internet here?
(ii) Shiny is making gestures so that she can send a message to Romil. What is Shiny doing here?
(iii) Romil is trying to understand the message sent by Shiny by reading his gestures. What is Romil
doing here?
(iv) Prakash picks up his phone and finds a message on it. He reads the message carefully. What is the
role of Prakash here?
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30. Somnath Export Private Limited, is engaged in the business of export of garments. In the past, the
performance of the company had been upto the expectations. In line with the latest technology, the
company decided to upgrade its machinery. For this, the Finance Manager, Raheja estimated the amount
of funds required and the timings. This will help the company in linking the investment and the financing
decisions on a continuous basis. Raheja therefore, began with the preparation of a sales forecast for the
next four years. He also collected the relevant data about the profit estimates in the coming years. By
doing this, he wanted to be sure about the availability of funds from the internal sources of the business.
For the remaining funds he is trying to find out alternative sources from outside.
Identify the financial concept discussed in the above para. Also state the objectives to be achieved by the
use of financial concept, so identified.
Section : D
31. Briefly discuss the Planning process.
O
With the help of any four points, explain the crucial role that organising plays in an enterprise.
32. Explain any four functions of Stock Exchange.
o
Explain the recent Capital Market reforms in India.
33. Read the statements given in point (i) and (ii), answer the questions that follow
(i) Reena is the manager of the western division of a large corporate house.
(a) At what level does she work in the organisation?
(b) Explain any two functions performed by her.
(ii) Kunal supervise and control the workers. He ensures the proper arrangement of material and tools
to start the process.
(a) At which level does Kunal work in the organisation?
(b) Explain any two functions performed by him.
34. Samir Gupta started a telecommunication company, ‘Donira Ltd.’ to manufacture economical mobile
phones for the Indian rural market with 15 employees. The company did very well in its initial years.
As the product was good and marketed well, the demand of its products went up. To increase production
the company decided to recruit additional employees. Samir Gupta, who was earlier taking all decisions
for the company had to selectively disperse the authority. He believed that subordinates are competent,
capable and resourceful and can assume responsibility for effective implementation of their decisions.
This paid off and the company was not only able to increase its production but also expanded its product
range.
(a) Identify the concept used by Samir Gupta through which he was able to steer his company to greater
heights.
(b) Also explain any three points of importance of this concept.
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