BANGALORE SAHODAYA SCHOOLS COMPLEX ASSOCIATION
PRE-BOARD EXAMINATION 1 (2024-2025)
Grade XII
Class: - XII SUBJECT: BUSINESS STUDIES Date: - 16.12.2024
Time: - 3hours Code – (054): SET 1 Marks: - 80
• This question paper contains 34 questions.
• Marks are indicated against each question.
• Answers should be brief and to the point.
• Answers to the questions carrying 3 marks may be from 50 to 75 words.
• Answers to the questions carrying 4 marks may be about 150 words.
• Answers to the questions carrying 6 marks may be about 200 words.
Q.NO QUESTION MARKS
1. Protection of environment and conducting business in lawful manner comes under 1
which objectives of management?
a) Organisational objectives
b) Social objectives
c) Personal objectives
d) Other objectives
2. State weather the statement is true or false. 1
“Delegation means to renounce the responsibilities”.
a) True
b) False
3. What is meant by favourable financial leverage? 1
a) ROI is more than Cost of Debt
b) ROI is less than Cost of Debt
c) ROI is equal to Cost of Debt
d) None of the above
4. Training of intermediaries of the securities market is the 1
function of SEBI.
a) Regulatory function
b) Development function
c) Protective function
d) None of the above
5. Identify and explain the source of external recruitment in which firms use agents for 1
hiring unskilled and semi-skilled workers.
a) Labour contractor
b) Employment exchange
c) Placement agencies
d) Direct recruitment
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6. There is a difference between operating environment in India and China. Which feature 1
of business environment is highlighted in the above statement?
a) Dynamic nature
b) Uncertainty
c) Complexity
d) Relativity
7. Government has taken several measures to promote awareness like inclusion of 1
consumer education in schools and university courses. Which consumer right is
highlighted in the given statement?
a) Right to be heard
b) Right to seek redressal
c) Right to be informed
d) Right to consumer education
8. Mc Donals places a strong emphasis on regular inspection of supplier facilities, 1
testing of raw materials and monitoring of
product quality in restaurants. Identify and explain the function of management
mentioned in the statement.
a) Organizing
b) Directing
c) Staffing
d) Controlling
9. Which among the following best describes the statement below – 1
It involves determining number and type of human resources required to perform
various jobs and to achieve organisational objectives?
a) Workforce analysis
b) Break-even analysis
c) Workload analysis
d) None of the above
10. Management by Exception means 1
a) Attention to significant deviation
b) Attention to key result areas
c) Attention to each and every deviation
d) All of the above
11. Assertion (A): Earnings per share always rise with the increase in debt. 1
Reasons: Earning per share will rise when return on investment is more than the cost of
debt.
Select the correct alternative.
a) Both Assertion(A) and Reason are true and Reason is the correct explanation of
Assertion(A).
b) Both Assertion (A) and Reason are true but Reason is not the correct explanation
of Assertion (A).
c) Assertion (A) is true and Reason is false.
d) Assertion (A) is false and Reason is true.
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12. State whether the statement is true or false
An order passed by the National Commission in a matter of its original jurisdiction is
appealable before the Supreme Court if the aggrieved party is not satisfied with the
order of National
Commission.
a) True
b) False
13. Assertion (A): The main aim of new industrial policy was to create a more competitive 1
environment in the economy and to remove the barriers of entry and growth of firm.
Reason: The Indian economy faced a serious foreign exchange crisis, high government
deficit and a rising trend of price, despite bumper crops.
a) Both Assertion(A) and Reason are true and Reason is the correct explanation of
Assertion(A).
b) Both Assertion (A) and Reason are true but Reason is not the correct explanation
of Assertion (A).
c) Assertion (A) is true and Reason is false.
Assertion (A) is false and Reason is true.
14. While selling a car, the marketer specifies it’s features, comfort, 1
price etc. The purpose is to provide complete information about the product.
Identify the feature of marketing emphasised in the statement.
a) Need and want
b) Creating a market offering
c) Customer value
d) Exchange mechanism
15. Which function of management is known as ‘management of action’? 1
a) Planning
b) Organising
c) Directing
d) Controlling
16. Due to the negligence of doctors, Naveen passed away within a 1
week’s time after his heart surgery. Which of the following parties do you think is most
liable to file a case in this regard?
a) The consumer
b) The state government
c) A legal heir or a representative of a deceased consumer
d) None of the above
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17. Anshu Ltd has debt equity ratio of 4:1 whereas Misti Ltd has Debt Equity ratio of 1:1. 1
What advantage will Anshu Ltd have over Misti Ltd if the rate of interest on debt is
lower than the rate of return on investment?
a) Trading on equity
b) low risk
c) Greater flexibility
d) Greater Profitability
18. It acts like a bank and keeps securities in electronic form on behalf of the investors. 1
a) Depository participant
b) Depository
c) Stock exchange
d) Reserve bank of India
19. Identify the components of promotion mix, shown below 1
a) Advertising
b) Sales promotion
c) Public relation
d) Personal selling
20. Purchasing a new machine to replace an existing one is an example of 1
a) Financing decision
b) Dividend decision
c) Working capital decision
d) Capital budgeting decision
21. a) Amazon is a company that operates within international markets and is exposed to the 3
positive and negative effect of exchange rate fluctuation.
b) Regional cultural difference strongly influences consumer
preferences when it comes to a number of products, particularly
concerning food items with certain foods being considered taboo in certain regions of the
world
c) Amazon also makes use of patents and IP registries as a way of protecting brands
that use their services from counterfeiting.
Identify and explain the various elements of business environment highlighted in the
above statements.
OR
Explain the following elements of business environment
a) Political element
b) Legal element
c) Technological element
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22. Basic physiological needs are basic for human survival and safety needs provide 3
security from physical and emotional harm. Does
satisfying these two needs cease motivational phenomenon?
Comment on the statement with the help of the supporting theory.
OR
Bank employees endured the hardship of extended work hours post demonetization.
Most of the days they sacrificed their sleep and food to meet customer’s demands.
These long and hectic working hours were noticed and appreciated by all. Banks
chalked out
compensation plans for their employees like offering compensatory “off-days”, paid
vacations, supplementary finance and so on
OR
Regional cultural differences strongly influence consumer preferences when it comes
to a number of products, particularly concerning food items, with certain foods being
considered taboo in certain regions of the world.
In the context of the above case
a) Identify the human need of the bank employees as per Maslow’s need hierarchy
theory which was affected due to demonetization.
b) Identify the type of incentives which were provided to the bank
employees.
c) State any two values which the bank employees demonstrated
towards their customers.
23. Deciding about the capital structure of a firm involves determining 3
the relative proportion of various types of funds. This depends on various factors.
Discuss any three.
24. A good understanding of the business environment by business 3
managers enables them not only to identify and evaluate, but also to react to the forces
external to their firms. A study of the business environment is very important for all
businesses. Do you agree?
Comment.
25. It’s the force that binds all the other functions of management and is sometimes 4
considered a separate function. However, it is the crux of management for achieving
harmony of individual efforts towards the accomplishment of group goals. Identify the
concept and explain
any four features.
26. Discuss the importance of training to the employees. 4
OR
Both the methods of “learning while doing” and “learning before doing” benefits both
the employees and the organisation. Analyze any four methods.
27. A leadership style is the result of philosophy, personality, experience and value system of 4
leaders. It also depends upon the type of
followers and the atmosphere prevailing in the organisation. In the
light of this statement, explain the concept of leadership and discuss the three basic styles.
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28. If planning function is done right, there is no need for controlling. Do you agree with 4
the statement? Justify your answer with the help of importance of controlling.
OR
Explain the process of controlling.
29. Differentiate between single use plan and standing plan. 4
30. Every businessman emphasizes various factors that guide the marketing efforts in order 4
to achieve desired exchange outcomes with the target market. Some focus on large-scale
production while some focus on the satisfaction of customers and society’s well-being.
Identify the concept and discuss any four.
31. Which functions are performed by stock exchanges to ensure a 6
favourable climate for an active and growing primary market.
32. Discuss the importance of Decentralisation. 6
OR
Explain the importance of Delegation.
33. Mitra opens an eco-friendly, handmade craft unit in Chennai. She hired the local men and 6
women artisans for the work. She also hired a few men and women with physical
disabilities. She has created a special place for the display where each item is organized
in a particular manner. There is a separate working space for the artisans and their
equipment. For greater productivity, she divided the work into small tasks, and all the
employees followed only Mitra's command.
for creating designs. There is no other commanding authority in the unit. The
salespersons are allowed to close the deal by giving a maximum 5% discount to the
buyers, whereas the decision to give further discounts rests with Mitra. In the earlier
days of starting the business, she asked five of her employees to work extra hours, and
she gave incentives for the same.
Identify and explain various principles of management that are being applied by Mitra
by quoting the lines from the paragraph.
34. Describe the various factors, which are considered while fixing 6
price of a product.
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