Page 1 Sample Paper 18 Business Studies Class 12

Sample Paper 18
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. A new packaging machine is to be installed in a fast food factory. Which type of decision is taken while
deciding about its installation?
(a) Working capital decision
(b) Capital budgeting decision
(c) Financing decision
(d) All of these

2. ‘The human resource manager assessed the number and type of human resources necessary for the
performance of various jobs under an electronic division, and found it to be understaffed.’
Which type of analysis has been done by human resource manager?
(a) Workload analysis
(b) Workforce analysis
(c) Human resource analysis
(d) None of these

3. RK Verma who was unwell, called his son Suresh and gave him a gift packet. Suresh opened the packet
and saw many crumpled share certificates inside. His grandfather told him that they had been left behind
by his late father. As no trading is now done in physical form, Suresh wants to know the process by
adopting which he is in a position to deal with these certificates.
Identify the process.
(a) Dematerialisation
(b) Demutualisation
(c) Neither (a) nor (b)
(d) Both (a) and (b)
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4. Manahis Sharma works readymade garments factory. in an production manager. He was shifted sales
department without any substantial change in the responsibility and status.
Which type of recruitment is done in this case?
(a) Horizontal recruitment
(b) External recruitment
(c) Internal recruitment
(d) None of these

5. SolarTop Power Private Limited set up a factory for manufacturing solar lanterns in a remote village
as there was no reliable supply of electricity in rural areas. The revenue earned by the company was
sufficient to cover the costs and the risks. The demand of lanterns was increasing day-by-day, so the
company decided to increase production to generate higher sales. For this, they decided to employ
people from the nearby villages as very few job opportunities were available in that area. The company
also decided to open schools and crèches for the children of its employees.
Identify the objectives of management discussed above.
(a) Social objective
(b) Organisational objective
(c) Neither (a) nor (b)
(d) Both (a) and (b)

6. Identify the right of consumers being promoted in the given picture.

(a) Right to be heard

(b) Right to seek redressal
(c) Right to be informed
(d) Right to consumer education

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7. Match the work performed by specialist foremen under functional foremanship in Column I with job
assigned to them in Column II.
Column I Column II
A. Ensures discipline (i) Inspector
B. Check quality of work (ii) Instruction card clerk
C. Draft instructions to workers (iii) Disciplinary
(a) (iii), (ii), (i) (b) (i), (iii), (ii)
(c) (iii), (i), (ii) (d) (ii), (iii), (i)

8. PS Fabric Company is planning to measure potential of each employee for learning new skills to know
their capacity to develop.
Which type of test will cater company’s aim?
(a) Aptitude test
(b) Intelligence test
(c) Trade test
(d) Interest test

9. Which of the following is the first and largest depository presently operational in India.
(a) Central Depository Services Limited (CDSL)
(b) National Securities Depository Limited (NSDL)
(c) Neither (a) nor (b)
(d) Both (a) and (b)

10. Assertion (A) Planning is futuristic.

Reason (R) Panning is concerned with the future which is certain and does not require forecast.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is correct, but Reason (R) is incorrect
(c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of
Assertion (A)
(d) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of
Assertion (A)

11. Statement I: Divisional head is responsible for profits and losses for his/her division.
Statement II: Functional structure is economical than divisional structure.
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

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12. Statement I: Working capital requirements of a company is affected by inflation.

Statement II: ‘Choice of technique’ affects the requirement of fixed capital of a company.
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

13. Familiarising the selected employees with the rules and policies of the organisation and introducing the
selected employees to other employees is the process of:
(a) Induction training
(b) Performance appraisal
(c) Employment interview
(d) None of these

14. A company earned a profit @12% last year. Debts are available in the market @15%. If the company
issue debt for its financial needs, it will be______.
(a) Unlevered
(b) Unfavourable levered
(c) Favourable levered
(d) Cannot decide

15. A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster team spirit. Which
principle of management is being highlighted here?
(a) Order
(b) Equity
(c) Discipline
(d) Espirit de Corps

16. Arrange the following steps involved in the staffing process in correct sequence:
(i) Estimating the Manpower Requirements
(ii) Selection
(iii) Recruitment
(iv) Performance Appraisal
(v) Training and Development
(vi) Placement and Orientation
(vii) Compensation
(viii) Promotion and career planning
(a) (i), (iii), (ii), (iv), (vi), (v), (vii), (viii)
(b) (i), (ii), (iii), (v), (vi), (vii), (viii), (iv)
(c) (i), (ii), (iii), (vii), (v), (viii), (iv), (vi)
(d) (i), (iii), (ii), (vi), (v), (iv), (viii), (vii)

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17. A element/dimension of business environment involves improvements and innovations which provide
new ways of producing goods and services and new methods and techniques of operating a business?
Select the above element :
(a) Technological
(b) Political
(c) Economic
(d) Social

18. Which of the following principle of equity does not imply ?

(a) Equal pay to everyone
(b) Fair treatment to all employees
(c) Stern action against the lazy personnel
(d) No discrimination against anyone on the basis of gender, religion, language, caste, belief, etc.

19. SteelTech Pvt Ltd is a steel manufacturing company located in India. It is enjoying buoyant demand for
its products as economic growth is about 9 to 10 percent and demand for steel is growing. The company
has decided to set up a new plant to cash on the increase demand. It is estimated that it will require about
` 5,000 crores to set up and about ` 1,000 crores of working capital to start the new plant.
Identify the decision taken by the financial manager in the above case?
(a) Financial decision
(b) Investment decision
(c) Dividend decision
(d) Capital structure decision

20. Which of the following is not an advantage of functional structure?

(a) Minimum duplication of work
(b) Coordination across departments
(c) Ease in training of employees
(d) Control and coordination within departments

Section : B
21. Dominos offered ‘Vrat Special Menu’ during Navratras to attract the Indian customers with vegetarian
pizza made of water-chestnut flour (singhada atta), and white millet flour (Samak ke chawal ka atta). It
was topped with fresh mozzarella cheese with rock salt, tomatoes, paneer and crunchy sabudana. The
tomato sauce was made without onions and garlic and used rock salt rather than common salt.
State and explain the feature of management which is highlighted in the above case.

22. What is meant by ‘Financial Management’? State its objective.

O
It is that component of Financial market, in the absence of which the primary market will become
unattractive as there will be no liquidity. Identify the type of Financial market and list its two functions.
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23. Somani Chemical Pvt Ltd is engaged in the production and distribution of chemicals. Lately, due to
stiff competition in the market, the profits of the company steeply dropped. On analysing deviations
and finding corrective measures, the managers decided to motivate employees through incentives.
Consequently, Somani Chemical Pvt Ltd offered to its employees, shares at a price which is less than
the market price.
(i) Name and explain the type of incentive offered to employees.
(ii) Explain one more incentive of the same category.

24. “If we delegate the authority, we multiply it by two; if we decentralise it, we multiply it by many”. How?

Section : C
25. Rajesh was working as a First Line Manager. At which level of management was he working? State any
two functions performed at that level.


O
Nowadays the market offers a lot of opportunities to the marketers as the customer income is rising.
People have developed a taste for better quality products even though they may have to pay more. Their
aspiration levels have increased.
(a) Which dimension of business environment is being referred to?
(b) Explain one more dimension of business environment with example.

26. Explain the concept of Democratic style of leadership and state its any two features.


O
‘An ideal controlling technique is the one that checks each and every stage in the process of production.’
Comment.

27. Fastrack Sports Pvt Ltd is in the business of manufacturing treadmills. In this company the morale of the
employees is very low in-spite of the different financial incentives offered to them. The company does
not provide any developmental opportunities to them. Neither they are involved in the decision making
nor their work appreciated by the top level management.
(a) Why is the morale of employees low?
(b) State the different incentives that the company should offer by giving reference to the relevant
lines.

28. What is informal communication ? How is it different from formal communication on the basis of
natural relationship among the members and speed of communication ?

29. Identify the source of recruitment used in following cases.

(i) For recruitment of casual worker, an advertisement for the Diwali season is posted in a factory that
makes cracker.
(ii) ITC Hotel goes to Institute of Hotel Management for recruitment of freshers.
(iii) Rubi System Pvt Ltd has a bond program where an employee can refer his friend or relative who
is qualified for a post.
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(iv) Sweety Food Pvt Ltd is searching for eligible candidate for the post of marketing executive using
www. naukari.com.

30. In an organisation different workers completed the same task by adopting different methods, involving
different movements and took different amount of time. This led to a lot of variation in the type of work
performed and the output produced. To do away with this, Rakesh, the manager decided to eliminate
unnecessary diversity of products and find out the best way of doing the job. Various studies were
undertaken to determine standard way and time of doing a work.
Explain any two techniques of Taylor used by Rakesh.

Section : D
31. After laying down the plans, a function is initiated to lay down the organisational structure. Explain the
importance of this function in management.


O
Planning is deciding in advance the future course of action. Explain briefly what all needs to be done to
make effective and efficient plans.

32. A company wants to replace its old machinery with new hi tech machines available in the market. For
this, it will have additional funds requirement of at least ` 50 Crores. As a Finance Manager, help the
company in deciding the right source for raising the money by explaining the different factors that
impact such a decision.


O
Market ‘A’ involves the sale of securities by the new companies or further issue of securities by the
existing companies to the investors, whereas Market ‘B’ involves the purchase and sale of existing
securities.
Identify the Market ‘A’ and Market ‘B’ highlighted here and differentiate between the two on any five
basis.

33. Read the statements given in point (i) and (ii) answer the questions that follows
(i) Softer Electrical Pvt Ltd has hired 80 salesmen who will be assigned the task of contacting
prospective buyers and creating awareness about the new range of products introduced by the
company.
(a) Identify the element of promotion described in the given lines.
(b) Explain two features of that element identified above.
(ii) Maruti sells its cars and vans through company approved retailers and covers a wide area of market.
(a) Identify channel of distribution adopted by Honda.
(b) Discuss in brief the other two channels also.

34. A company was marketing ‘water purifiers’ which were very popular due to their quality and after sales
services provided to the customers. The company was a leading company in the market and earning
huge profits. Because of huge profits, the company ignored the after sales services. As a result, its
relations with the customers got spoiled and the image of the company was damaged in the public. Top
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management became concerned when the profits for the current quarter fell steeply. On analysis, it was
revealed that ignoring the after sales services was its reason. Therefore, the company took all possible
measures to protect and promote its favourable image in the eyes of the public. As a result, the goodwill
of the company improved in the society.
(a) Name and state the communication tool used by the marketer in the above case to improve its
image.
(b) Also explain role of the tool as identified in part (a).


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