12PB24BUS01

KENDRIYA VIDYALAYA ERNAKULAM REGION

PRE-BOARD EXAMINATION 2024-25
BUSINESS STUDIES (054)
CLASS XII

Max Marks-80 Time allowed: 3 Hours

General instructions:

1. This question paper contains 34 questions.

2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers 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 Every manager has his own unique way of managing things and people. This is related to: 1
(a) Management as a Profession
(b) Management as Science
(c) Management as an Art
(d) None of these
2 To cooperate with other departments for smooth functioning of the organisation’ highlights 1
the function of ____________________ level of management.
(a) Top
(b) Supervisory
(c) Middle
(d) None of these
3 Sachin Pvt. Ltd is company dealing in stationery items. In order to establish standards of 1
excellence and quality in materials and in the performance of men and machines, the company
adheres to benchmarks during production. Moreover, its products are available in limited
varieties, sizes and dimensions thereby eliminating superfluous diversity of products.
Identify the technique of scientific management which has been adopted by Sachin Pvt. Ltd
(a) Functional Foremanship
(b) Fatigue Study
(c) Standardisation & Simplification of Work
(d) Method Study
4 A bottle of sanitiser mentions ' Clean your hands and get rid of dirt in one squeeze'. The 1
product related decision involved is
(a) Branding
(b) Product quality
(c) Packaging
(d) Labelling
5 VNG Agro Food Ltd. is a famous multinational company. Midun is its finance manager. He 1
is trying to increase the market value of capital invested by the equity shareholders. He already
knew it could be possible only when the price of the shares increases and the price of shares
increases only if financing, investment, and dividend decisions are taken optimally. He did
the same and achieved success. Which objective of financial management has been referred
to here?
(a) Maximizing the wealth of equity shareholders
(b) Effective utilisation of funds
(c) Ensures the safety of funds
(d) Avoiding idle finance
6 In a company, while scrutinizing the production records it is found that in a particular batch, 1
the rejection rate was 7% against the standard of 5%. The management found out that this
was due to negligence of quality control staff. This action is part of the controlling process.
(a) Measurement of actual performance
(b)Comparing actual performance with standards
(c) Analysing deviations
(d) Taking corrective action
7 Identify the correct sequence of steps to be followed in the trading procedure at the Stock 1
Exchange.
(a) Opening a trading account and Demat account, Placing an order, Settlement of order,
Execution of order
(b) Settlement of order, Opening a trading account and Demat account, Placing an order,
Execution of order
(c) Opening a trading account and Demat account, Placing an order, Execution of order,
Settlement of order
(d) Placing an order, Opening a trading account and Demat account, Execution of order,
Settlement of order
8 Read the following statements: Assertion (A) and Reason (R). Choose the 1 1
correct alternative from those given below:
Assertion (A): Financial Planning aims at enabling the company to tackle the
uncertainty in respect of the availability and timing of the funds.
Reason(R): Capital structure refers to the mix between owners’ and borrowed funds
Alternatives:
(a) Both Assertion (A) is false and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of the Assertion.
(d) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct
explanation of the Assertion.
9 From the following pictorial presentation identify the objective violated by the management 1

(a) Organisational Objective

(b)Social Objective
(c) Personal Objective
(d) Economic Objective
10 Packaging is said to have the unique capacity to make products stand out in a crowded 1
marketplace. Therefore, convenience of the consumer is at the top of mind of the marketers
as they are focusing on developing packaging that’s easier to open, to protect against breakage,
maintain freshness during delivery and keep a consistent look and feel across multiple
channels. Identify the type
of plan being described in the above lines.
(a) Programme
(b) Method
(c) Strategy
(d) Rule
11 Avik is the finance manager of Mars Ltd. In the current year, the company earned high profits. 1
However, Avik thinks that it is better to declare a smaller dividend as he is unsure about the
earning potential of the company in the coming years. Avik’s choice of dividend decision is
based on which of the factor affects it?
 (a) Amount of earnings
(b) Stability in earnings
(c) Stability of dividends
(d) Growth opportunities
12 Assertion (A) Business finance refers to the money required for carrying out business 1
activities.
Reason (R) Financing decisions involve careful selection of assets, in which funds are to be
invested.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
13 Statement-I Transportation helps in creating time utility and warehousing helps in creating 1
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
14 Rules have been made so that the manufacturer displays this information, it is because 1
consumers have the _________ about the particulars of goods and services that they
purchase.
(a) right to be informed
(b) right to equality
(c) right to choice
(d) None of the above
15 A beauty goods manufacturing firm has decided to determine client demands in order to 1
begin successful marketing of the clothing it produces, and is conducting a SWOT analysis
to accomplish so (Strength, Weakness, Opportunity and Threat Analysis). The organisation
is working hard to achieve its goals. It has decided to create a blueprint for how much
production it will accomplish, how much work it will put into promotion, and all other
significant measures it will do to reach its goals. However, the business has one flaw that it
would like to address. Last year, the physical movement of the company’s prepared items
was not done effectively, and the company wants to make sure it is done correctly this year.
It has established a separate department to appropriately carry out this task. I’m hoping for a
better future for the company.
In the preceding example, which marketing functions were highlighted?
(a) Marketing planning and transportation
(b) Transportation and identifying customer needs
(c) Gathering and analysing market information and planning
(d) Both a and c
16 Which type of training is provided to the new employees of an organisation in order to 1
familiarise them with the organisational rules and policies, their superior and subordinate,
and so on?
(a) Vestibule training
(b) Apprenticeship training
(c) Internship training
(d) Induction training
17 On the successful completion of two years in a company, Harsh received a letter confirming 1
his job as a permanent employee. Identify the need of Harsh being fulfilled as per Maslow’s
Need Hierarchy Theory.
(a) Esteem Needs
(b) Security Needs
 (c) Self Actualisation Needs
(d) Basic Physiological Needs
18 Raman and Vasudev were two employees who were embezzling an import-export company 1
in Varanasi where they were working. The finance manager of the company Rita 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
19 The various activities involved in the process of recruitment include ________. 1
(a) Identification and assessment of the different sources of recruitment
(b) Selecting the most suitable source or sources
(c) Inviting applications from the prospective candidates
(d) All of the above
20 Match the following marketing concepts in Column I with their main focus in Column II and 1
choose the correct alternative:
Column – I Column – II

(i) Customer need and society’s

A – Production Concept
well being

B – Product Concept (ii) Quantity of product

C – Selling Concept (iii) Quality of Product

D – Societal Concept iv) Existing product

(a) A – (iv), B – (iii), C – (ii), D – (i)

(b) A – (iii), B – (i), C – (iv), D – (ii)
(c) A – (ii), B – (iv), C – (i), D – (iii)
(d) A – (ii), B – (iii), C – (iv), D – (i)
21 After completing a course in travel and tourism, Kiran started his own travel agency. In 3
(A) order to ensure smooth functioning of his business, he decided to create fourteen job
positions divided into four departments on the basis of functions namely, front office
department including online queries, reservations department for airways, railways and
roadways, accommodation booking department, and securing payments department. In order
to avoid any interdepartmental conflicts he decides to specify clearly the lines of authority
and areas of responsibility for each job position.
In the context of the above case:
1 Name the type of the framework as identified in the above para of the question.
2 \Give any two of its advantages.
OR
(B) Laser Ltd. is an IT company having 1,000 employees. All its employees take things easy and
are free to approach any one for minor queries and problems. Because of this the operations
of the company are disturbed and its revenue has declined. Everyone is seen talking to each
other resulting in inefficiency in its offices. It has also resulted in loss of secrecy and
confidential information being leaked out. Explain the measures that the manager should
adopt to improve communication system of ‘Laser Ltd.’
22 Do you agree with the statement, "Internal sources of recruitment are better than external 3
sources of recruitment"? Provide two reasons to support your answer.
23 Ramesh is the owner of a printing press. The size of his organisation has increased during the 3
recent past. There are many employees who work in his organisation. The organisation is
considered good and has earned a lot of reputation in the market. However, when it comes to
making key decisions in the organisation related to many things he never considers the
opinions of his subordinates. Even though the size of the organisation has increased yet he
tries to take all the key decisions on his own. Which principle of Fayol has been violated by
him?
24 It is deciding in advance what to do and how to do it. It is one of the basic managerial 3
(A) 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 2 limitations of the function identified
OR
(B) Explain how Planning and controlling are both backward looking, as well as forward looking
functions.
25 Tharun is working in multinational company in Noida. He was running temperature for the 4
last many days. When his blood was tested, he was found positive for dengue with a very low
platelet count. Therefore, he was admitted in the hospital and a blood transfusion was advised
by the doctors. One of his colleagues sent a text message about it to his immediate superior
‘Chander. ‘Chander in turn sent a text message to the employees of the organization
requesting them to donate blood for Arun. When the General Manager came to know about it,
he ordered for fumigation in the company premises and cleanliness of the surroundings.
1. From the above para quote lines that indicate formal and informal communication.
2. State any two features of informal communication
26 Sourav is the Managing Director of Denver Ltd. The company had established a good name 4
for itself and had been doing well. It was known for timely completion of orders. The
Production Manager, Suman was efficiently handling the processing of order and had a team
of fourteen motivated employees working under her. Everything was going on well.
Unfortunately, she met with an accident. Sourav knew that in the absence of Suman the
company may not be able to meet the deadlines. He also knew that not meeting the deadlines
may lead to customer dissatisfaction with the risk of loss of business and goodwill. So, he had
a meeting with his employees in which accurate the speedy processing of orders was planned.
Everybody agreed to work as team because the behaviour of Sourav was positive towards the
employees of the organisation. Hence everyone put in extra time and efforts and the targets
were met on time. Not only this, Sourav visited Suman and advised her to take sufficient rest
1 Identify the leadership style of Sourav
2 Explain the other 2 types of Leadership styles
27 Sravan is a branch manager of ABC handicrafts Pvt. Ltd. The company objective is to promote 4
the sale of Indian handloom and handicraft products. Its sells fabrics, furnishings, ready-mades
and households’ items are made out of traditional Indian fabrics. Sravan decides quantities,
variety, colour and texture of all the above items and then allocates resources for their purchase
from different suppliers. She appoints a team designers and crafts people in the company, who
develops some prints for bed covers in bright colours on silk. Although they looked very
impressive, they were more expensive than they had planned to sell. Average customer could
not afford to buy it. Praising their effort, Sravan suggested that they should keep the silk bed
covers for special occasions like Diwali and Christmas and offer the cotton bed covers on
regular basis to keep costs under control.
Identify any 4 functions of management which Sravan performs by quoting the lines from
the above para.
28 ‘Organising is the process of defining and grouping the activities of the enterprise and 4
(A) establishing the authority relationship among them.’ In the light of this statement, explain
the steps in the process of organising.
OR
Palian Ltd. specialises in the production of steel goods. The company’s goal is to make 250
(B) goods per day. To accomplish this, all departments’ efforts are coordinated and linked, and
 authority- responsibility relationships between various job roles are established. There is a
10clear understanding of who is responsible for reporting to whom.
1 Identify the function of management highlighted in the above case
2 Explain the first 3 importance of the identified function
29 In order to streamline the selection procedure, so as to minimise the margin of errors, certain 4
(A) tests are carried out that attempt to measure the characteristics of individuals. Explain any
four such tests.
OR
(B) Since jobs have become more complex, the importance of employee training has increased.
Training programmes provide numerous benefits to workers.
Explain any four points that support this statement.
30 Sabu was the CEO of 'Blue Lights Ltd.', a company providing advanced software solutions to 4
Indian Defence Services. They had been carrying on business successfully for the last twelve
years and earning enough profits. But from the last one year, they realised that though the
business is getting big orders which are being fulfilled in time, even then the revenues kept on
decreasing. Sabu was not able to find out where the problem was. He started keeping a close
check on the progress of activities as he could sense that something was wrong. He wanted to
take some action before any major damage could be done to the business. Sabu appointed a
cyber-security expert who monitored the company's processes and found out that the computer
operator was deleting the entries from the computers and pocketing the revenues. He was
caught and handed over to the police. This created an atmosphere of order and discipline in
the organisation and helped in minimizing dishonest behaviour on the part of the employees.
(a) Identify the function of management highlighted in the above paragraph.
(b) Explain any 3 other ways in which this function of management may help the organisation.
31 Sachin started a telecommunications company, ‘Donnet Ltd.’, to manufacture economical 6
(A) 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 the products
went up. To increase production, the company decided to recruit additional employees.
Samir Gupta, who was earlier taking all the decisions for the company, had to selectively
disperse the authority. He believed that subordinates are competent, capable and resourceful
and can assume responsibility for the 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.
Identify the concept used by Sachin through which he was able to steer his company to
greater heights.
Also explain any three points of importance of this concept
32 After doing a diploma in entrepreneurship, Arun started his own confectionary business. He 6
started doing a lot of hard work and used the recipes taught by his grandmother in various
preparations. He also learnt many recipes from online sites and television programmes. He
decided to keep the price of the products low initially and also informed his customers about
the goodness of the items sold by them. However, he didn’t mention on the package of each
item weather it contained eggs or not. As a result, vegetarian people became hesitant in
buying things from his shop as they had to verbally inquire from him about the inclusion of
eggs in the preparation of various items. In the context of the above case:
a. Name the important aspect related to the marketing of products which has been ignored
by Arun.
b. Explain briefly any three functions performed by the aspect as identified in part (a).
OR

Explain any 4 rights of the consumers

33 Sanju, after completing his entrepreneurship course from Sweden returned to India and started 6
a coffee shop ‘Dew Drops “in a famous mall in Delhi. The speciality of the perfume shop was
the special fragrance of perfumes and a wide variety to choose from. Somehow, the business
was neither profitable nor popular. Sanju was keen to find out the reason. He appointed
Sandhya, an MBA from a reputed college, as a Manager to find out the causes for the same.
 Sandhya took feedback from the clients and found out that though they loved the special
unique fragrance of perfumes but were not happy with the long waiting time being taken to
process the order. She analysed and found out that there were many unnecessary obstructions
in between which could be eliminated. She fixed a standard time for processing the order.
She also realised that there were some fragrances whose demand was not enough. So, she also
decided to stop the sale of such fragrances. As a result, within a short period Sandhya was
able to attract the customers.
1 Identify and explain any two techniques of scientific management used by Sandhya to solve
the problem
2 Explain any other 2 techniques of Scientific Management
34 Lekha wants to buy shares of Bright Enterprises, through her broker Kamal. She has a Demat 6
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.