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Class 12 - Business Studies

Sample Paper 10

Maximum Marks: 40
Time Allowed: 90 minutes

General Instructions:

1. The Question Paper contains 3 sections.

2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.

Section A
1. Which of the following principles aims at checking the ignoring of activities?
a. All of these
b. Unity of command
c. Discipline
d. Unity of direction
2. This principle emphasizes kindliness and justice in the behaviour of managers towards workers:
a. Initiative
b. Order
c. Espirit De Corps
d. Equity
3. Which of the following does not facilitate globalisation?
a. Immigration control
b. Improvements in communication
c. Barriers to trade and investment
d. Removal of control on foreign investment
4. Planning leads to rigidity is a:
a. Limitation of planning
b. Importance of Planning
c. Method of Planning
d. Characteristics of planning
5. Which of the following is not an element of delegation?
a. Informal organization
b. Accountability
c. Responsibility
d. Authority
6. The word market has come from the Latin word ________.
a. Marketo
b. Marketio
c. Marcatus

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d. Matico
7. Who is the Father of Administrative Management?
a. Both Fayol and Taylor
b. Fayol
c. None of these
d. Taylor
8. What to do and how to do is concerned with ________.
a. Contorlling
b. Organising
c. Directing
d. Planning
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9. Increase or decrease in the value of rupee is an example of ________.
a. Political Environment
b. Social Environment
c. None of these
d. Economic Environment
10. Which of the following is not true about planning?
a. Planning is a mental exercise
b. Planning is necessary
c. Planning reduces creativity
d. None of these
11. A tall structure as a:
a. No span of management
b. Narrow span of management
c. Wide span of management
d. Less levels of management
12. The basic role of marketer is to:
a. Advertise only
b. Sell the product
c. Identify a need and fill it
d. Earn more and more profits
13. Which of the following statements best describes Mental Revolution?
A. Both management and workers require each other.
B. The management and workers should not play the game of one-upmanship.
C. It implies a change of attitude of management only.
D. Workers should be paid more wages.
a. Only D
b. Only B
c. Only A
d. Only C
14. Which of the following is a limitation of planning?
a. Planning facilitates decision making
b. Planning promotes innovative ideas
c. Planning does not guarantee success
d. Planning provides directions

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15. Which of the following has got the First Mover Advantage?
a. Kansai Paints
b. Goodlass Nerolac
c. Asian Paints
d. Kan Paints
16. The first step of planning is ________.
a. Implementing the plan
b. Follow up action
c. Selecting an alternative
d. Setting objectives
17. For delegation to be effective it is essential that responsibility be accompanied with necessary:
a. Incentives
b. Authority
c. Manpower
d. Promotions
18. Which of the following is not a function of marketing?
a. Product designing and development
b. Bending the customers according to product
c. Marketing planning
d. Gathering and analysing market information
19. Choose the correct matches
(i) Speed boss (a) Timely completion of job

(ii) Gang boss (b) The proper working condition of machines and tools

(iii) Repair boss (c) Check the quality of work

(iv) Inspector (d) Keep machines and tools ready for operation
a. (i) - (a), (ii) - (d), (iii) - (b), (iv) - (c)
b. (i) - (b), (ii) - (a), (iii) - (c), (iv) - (d)
c. (i) - (a), (ii) - (c), (iii) - (d), (iv) - (b)
d. (i) - (c), (ii) - (b), (iii) - (a), (iv) - (d)
20. What is the last step in planning process?
a. Follow up action
b. Developing premises
c. Setting objectives
d. None of these
21. The economic system in which business units or factors of production are privately owned and
governed is called as ________.
a. Capitalism
b. Republic
c. Socialism
d. Democratic
22. Planning seeks to bridge the gap between:
a. Past and present position
b. Past and Future position
c. None of these
d. Present and Future position

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23. The span of management refers to:

a. Length of term for which a manager is appointed
b. Number of managers
c. Number of members in top management
d. Number of subordinates under a superior
24. SWOT Analysis is a strong part of ________.
a. Selling
b. Publicity
c. Marketing
d. None of these
Section B
25. Which of the following statements is false about Taylor and Fayol?
A. Fayol's principles are applicable in specialised situations whereas Taylor's principles have
universal application.
B. Fayol was a mining engineer whereas Taylor was a mechanical engineer.
C. Fayol's principles were formed through personal experience whereas Taylor's principles were
formed through experimentation.
D. Fayol's principles are applicable at the top level of management whereas Taylor's principles are
applicable at the shop floor.
a. Only D
b. Only A
c. Only C
d. Only B
26. Planning is concerned with ________.
a. Looking forward
b. Looking old records
c. Looking back
d. Looking new records
27. Advertisement of alcoholic beverages is prohibited. This is an example of ________.
a. None of these
b. Economic Environment
c. Political Environment
d. Legal Environment
28. Grouping of activities on the basis of product lines is a part of:
a. Functional organisation
b. Delegated organisation
c. Divisional organisation
d. Autonomous organization
29. Right of an individual to command his subordinates is ________.
a. Accountability
b. None of these
c. Responsibility
d. Authority
30. Which of the following starts from (starting point) factory ________.
a. Product concept
b. Production concept
c. All of these

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d. Selling concept
31. Principles of management are not:
a. Universal
b. Flexible
c. Behavioural
d. Absolute
32. Which of the following is not correct?
a. Planning reduces the profitability
b. Planning is futuristic
c. Planning is continuous process
d. Planning focuses on achieving objectives
33. Packets of cigarettes carry the statutory warning Cigarette smoking is injurious to health is an
example of ________.
a. legal environment
b. technological environment
c. social environment
d. political environment
34. Which of the following is concerned with the Quality performance of a product?
a. Product concept
b. Marketing
c. Production
d. Selling concept
35. Planning is a:
a. Useless Function
b. Obsolete Concept
c. Mental Exercise
d. One time process
36. Marketing mix is the set of the ________.
a. Selling tools
b. Production tools
c. Publicity tool
d. Marketing tools
37. Which of the following is the part of marketing mix?
a. All of these
b. Price
c. Place and Promotion
d. Product
38. Properly perform the assigned duty, is ________.
a. Authority
b. None of these
c. Accountability
d. Responsibility
39. Under marketing mix which of the following is not a part of Product?
a. Brand Name
b. Quality
c. Design
d. List price

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40. Planning helps in reducing the ________.

a. Risk of uncertainty
b. Direction for action
c. Decision making
d. Memory
41. Which concept is related to the total sale of an existing public sector undertaking to the private sector?
a. Denationalisation
b. Liberalisation
c. Globalisation
d. Disinvestment
42. Under accountability a person is answerable for the:
a. Growth of comapny
b. None of these
c. Delegation of Authority
d. Final outcome of the assigned task
43. Which of the following is not concerned with the Price?
a. Margins
b. List price
c. Advertising
d. Discounts
44. ________ cannot be entirely delegated.
a. Authority
b. None of these
c. Accountability
d. Responsibility
45. Which of the following is not a part of Place and Promotion?
a. Sales Promotion
b. Advertising
c. Personal selling
d. Warranties
46. It flows downwards, superior to subordinate ________.
a. Accountability
b. Responsibility
c. Authority
d. None of these
47. Providing information to the customers about the product, its features and quality etc., are part of:
a. Production
b. None of these
c. Promotion
d. Pricing

48. Assertion (A): One of the main differences between efficiency and effectiveness is based on the things
they emphasise upon.
Reason (R): Efficiency emphasises doing the right task whereas effectiveness emphasises doing the
task in the right way.

a. Both A and R are true and R is the correct explanation of A.

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b. Both A and R are true but R is not the correct explanation of A.

c. A is true but R is false.
d. A is false but R is true.
Section C

Question No. 49 to 54 are based on the given text. Read the text carefully and answer the
questions:

Priya, Riya and Seema are best friends. They started a manufacturing unit of garments in Delhi. After a
successful establishment in Delhi. They decided to open one of its branches in rural areas in Haryana
with the objective of reducing the cost and offering jobs to the locals. They assessed and analyzed the
type and number of employees required, keeping in mind that they have to encourage women in rural
areas. They also offered employment opportunities to physically challenged people of rural areas. They
satisfy the financial needs of employees. This step has raised the living standard of people living in
rural areas.

49. Which of the following values is shown by the company?

a. Women Empowerment
b. Senstivity towards Disadvantaged
c. Development of Backward Areas
d. All of these
50. They have to encourage women in rural areas and they offered employment opportunities to
physically challenged people in rural areas." Which objective of management is highlighted here?
a. Social
b. Personal
c. Organisational
d. Economic
51. They decided to open a branch in rural areas with the objective of reducing cost and offering job to the
locals. Which social objective is fulfilled by this effort?
a. Providing financial support to community
b. Contribution towards civic amenities
c. Generation of employment opportunities
d. Using eco-friendly methods of production
52. They satisfy the financial needs of employees by offering good salaries." This statement highlights
which objective of management?
a. Personal
b. Organisational
c. Social
d. Economic
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53. They decided to open one of its branches in rural areas. Which organisational objective is discussed
here?
a. Survival
b. Profit
c. None of these
d. Growth

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54. A business needs to add to its prospects in the long run. Identify the organisational objective
highlighted by this.
a. Production
b. Survival
c. Profit
d. Growth
55. In the context of business, research refers to:
a. Finding out new products
b. Finding out new markets
c. All of these
d. Finding out new methods of distribution
56. Lifetime of Henry Fayol is ________.
a. 1841 to 1930
b. 1845 to 1930
c. 1845 to 1925
d. 1841 to 1925
57. Liberalization is:
i. free flow of goods and services between different countries of the world
ii. Increase participation of the private sector
iii. reduction in formalities, taxes, and tariff
iv. unity among political parties
a. iii and iv
b. only iii
c. ii and iii
d. i and ii
58. Which of the following is a brand name?
a. All of these
b. Asian Paints
c. Nike
d. Woodland
59. What is the first step in organising process?
a. Establishing reporting relationship
b. Assignment of duties
c. Departmentalisation
d. Identification and division of work
60. ________ refers to the act of designing and producing the container or wrapper of a product.
a. Brand Name
b. Packaging
c. Copyright
d. Trade Mark

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Class 12 - Business Studies

Sample Paper 10

Solution

Section A
1. (d) Unity of direction
Explanation: Unity of direction principles aims at checking the ignoring of activities.
2. (d) Equity
Explanation: The principle of equity emphasizes kindliness and justice in the behaviour of managers
towards workers. No discrimination should be made by them on the basis of caste, creed, gender, etc.
3. (c) Barriers to trade and investment
Explanation: Barriers to trade and investment
4. (a) Limitation of planning
Explanation: It is not possible to change the pre-decided plans. With the changing situations, plans
sometimes fail to give positive results. Thus we can say plans lead rigidity.
5. (a) Informal organization
Explanation: Elements of the delegation are:
Responsibility
Authority
Accountability
6. (c) Marcatus
Explanation: The word market has been derived from Latin word Marcatus which refers to a place of
trade or a place where the business is carried on.
7. (b) Fayol
Explanation: Henri Fayol is the Father of Administrative Management.
8. (d) Planning
Explanation: Planning involves setting objectives and developing a course of action for the future. It is
deciding in advance as what to do and how to do.
9. (d) Economic Environment
Explanation: The economic environment consists of interest rates, inflation rates, stock market indices
and increase and decrease in the value of rupee, etc.
10. (c) Planning reduces creativity
Explanation: Planning is an intellectual process. The planners make a prediction for the future by
using their expertise, innovative ideas, and creativity. Thus planning promotes creativity.
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11. (b) Narrow span of management
Explanation: Narrow span of management means a single manager or supervisor oversees few
subordinates. This gives rise to a tall organizational structure.
12. (c) Identify a need and fill it
Explanation: Marketers develop place (distribution) strategy to ensure that consumers find their
products available in the proper quantities at the right times and places.
13. (c) Only A
Explanation:
Mental revolution involves a change in the attitude of workers and management towards one
another from competition to cooperation.

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Management and workers should realise that they require one another.
Management should share a part of surplus with workers.
Workers should also contribute their might so that the company makes profits.
14. (c) Planning does not guarantee success
Explanation: Planning only provides a base for analysing future. Future is uncertain as the business
environment always keeps on changing. There may be a number of unknown factors that could have
not predicted. Thus planning does not give guarantee success.
15. (b) Goodlass Nerolac
Explanation: Goodlass Nerolac has got the First Mover Advantage in the paint industry.
16. (d) Setting objectives
Explanation: Thus planning begins with objectives because all the policies, strategies, procedures etc.
are formed to achieve objectives only. Therefore the first step of planning is setting up the objectives.
17. (b) Authority
Explanation: For delegation to be effective, the authority granted must be equal to the assigned
responsibility. If authority is more than responsibility then it may lead to misuse of authority and If
responsibility is more than authority then the work will not be done effectively.
18. (b) Bending the customers according to product
Explanation: Marketing function types within a larger business might include performing market
research, producing a marketing plan, and product development, as well as strategically overseeing
advertising, promotion, distribution for sale, customer service and public relations.
19. (a) (i) - (a), (ii) - (d), (iii) - (b), (iv) - (c)
Explanation: (i) - (a), (ii) - (d), (iii) - (b), (iv) - (c)
20. (a) Follow up action
Explanation: Planning is a continuous process. It starts with setting the objectives and then putting
them into action. One can ensure the proper implementation of plans with proper monitoring by
comparing the actual results with expected. Thus it is the last step of the planning process.
21. (a) Capitalism
Explanation: Capitalism system in which business units or factors of production are privately owned.
22. (d) Present and Future position
Explanation: Under the planning process, we set objectives and decide in advance the appropriate
course of action for the future. Thus planning bridges gap between present and future position.
23. (d) Number of subordinates under a superior
Explanation: The span of management means how many subordinates can be effectively managed by
a manager. It depends upon the capacity and intelligence level of the manager and subordinates, trust
in subordinates, and nature of the job.
24. (c) Marketing
Explanation: SWOT analysis is a strong part of marketing. The SWOT analysis will be a useful tool in
developing and confirming your goals and your marketing strategy.
Section B
25. (b) Only A
Explanation: This statement "Fayol's principles are applicable in specialised situations whereas
Taylor's principles have universal application." is absolutely false.
The opposite of the above statement is true. i.e., "Fayol's principles are applicable universally whereas
Taylor's principles are applicable in specialised situations."
26. (a) Looking forward
Explanation: Managers make predictions for the future not for the past. The past is used as a basis to
make assumptions for the future. So, planning is concerned with looking forward.

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27. (d) Legal Environment

Explanation: The legal environment constitutes various laws and legislation passed by the parliament.
Non-compliance of laws can lead to legal problems. Thus this is an example of a legal environment.
28. (c) Divisional organisation
Explanation: When the size of the organization is large and it deals in more than one type of product.
Thus the structure is formed on the basis of the product is called a divisional structure.
29. (d) Authority
Explanation: Authority is the right to make a decision because of a managerial position. It determines
the superior-subordinate relationship. It arises through the scalar chain informal organisations due to
various job positions. Thus authority is a right to command one's subordinates.
30. (c) All of these
Explanation: Production Concept, Product Concept, and selling Concept starting from the
factory. Continuous exposure to advertising and personal selling leads many people to link marketing
and selling or to think that marketing activities start once goods and services have been produced.
31. (d) Absolute
Explanation: The application of management principles is dependent on the prevailing conditions in
an organisation at a particular point of time, so they should be applied according to the need of the
organisation. That's why management principles are relative and not absolute.
32. (a) Planning reduces the profitability
Explanation: All others are the characteristics of planning and correct except planning reduces the
profitability.
33. (a) legal environment
Explanation: It is as per the law that the manufacturer should specify the statutory warning.
34. (a) Product concept
Explanation: The product concept is based upon the idea that customers prefer products that have the
most quality, performance, and features, some customers prefer a product that is simpler and easier to
use.
35. (c) Mental Exercise
Explanation: Under planning, various alternatives are listed and after evaluation of these alternatives,
the best alternative is selected. All this process involves mental exercise.
36. (d) Marketing tools
Explanation: The marketing mix has been defined as the set of marketing tools that the firm uses to
pursue its marketing objectives in the target market.
37. (a) All of these
Explanation: The marketing mix has been defined as the "set of marketing tools that the firm uses to
pursue its marketing objectives in the target market. Thus the marketing mix refers to four broad
levels of marketing decision, namely: product, price, promotion, and place.
38. (d) Responsibility
Explanation: Responsibility means the obligation of subordinates to perform the duties properly.
Subordinates are bound to perform these duties.
39. (d) List price
Explanation: List price is not a part of the product in marketing mix it is the part of price mix.
40. (a) Risk of uncertainty
Explanation: Planning involves various assumptions, predictions and environmental scanning.
Financial and non-financial predictions for future reduce the risk of uncertainties.
41. (a) Denationalisation
Explanation: Denationalisation

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42. (d) Final outcome of the assigned task

Explanation: Accountability is the final step of the delegation process and arises from responsibility. It
means subordinates will be answerable for the non-completion of task or final output. It can not be
delegated.
43. (c) Advertising
Explanation: Advertising is the part of the promotion mix not a price mix in the marketing mix.
44. (d) Responsibility
Explanation: Responsibility flows upward. Subordinates will always be responsible to his superior.
Superior can not fully delegate their responsibility.
45. (d) Warranties
Explanation: Warranties are not a part of price and promotion it is the part of the product.
46. (c) Authority
Explanation: Authority is the power/right to make a decision. It arises from formal job positions in the
organisation and flows from superior to subordinate.
47. (c) Promotion
Explanation: In marketing, promotion is advertising a product or brand, generating sales, and creating
brand loyalty. It is one of the four basic elements of the market mix, which includes the four P's: price,
product, promotion and place.
48. (c) A is true but R is false.
Explanation: Efficiency and effectiveness differ in various ways. The main consideration they
emphasize can be one of those ways but the main focus of effectiveness is to do the right task and that
of efficiency is to perform that task in the right way.
Section C
49. (d) All of these
Explanation: All of these
50. (a) Social
Explanation: Social
51. (c) Generation of employment opportunities
Explanation: Generation of employment opportunities
52. (a) Personal
Explanation: Personal objective
53. (d) Growth
Explanation: Growth
54. (d) Growth
Explanation: Growth
55. (c) All of these
Explanation: Research works for all of these.
56. (d) 1841 to 1925
Explanation: Henri Fayol (1841-1925) was a French management theorist whose theories concerning
the scientific organisation of labour were widely influential at the beginning of the twentieth century.
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57. (b) only iii
Explanation: Liberalization is the process of removal or loosening of restrictions on something,
typically an economic or political system.
58. (a) All of these
Explanation: When the company's trade name is used, multiproduct branding is also known as

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corporate branding, family branding or umbrella branding. All of these are brand names.
59. (d) Identification and division of work
Explanation: The steps are
i. Identification and division of work
ii. Grouping the jobs and departmentalisation
iii. Assignment of duties
iv. Establishing a reporting relationship
60. (b) Packaging
Explanation: The packaging is the technology of enclosing or protecting products for distribution,
storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing
packages.

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