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 Series ARSP/05 Set ~ 5
Roll No. Q.P Code 15/5/5
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 07 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

Business Studies

Time allowed: 3 hours Maximum Marks: 80

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. There are several associations of practising managers in India, like the AIMA (All India Management [1]
Association) that has laid down a code of conduct to regulate the activities of their members. There is, however,
no compulsion for managers to be members of such an association nor does it have any statutory backing.
Identify the characteristic of the profession that Management does not fulfil in the statement being discussed
above.

a) Restricted entry b) Professional association

c) Service motive d) Ethical code of conduct

2. With a revolution taking place in the manufacturing of mobile phones with super class cameras, the business of [1]
cameras in the consumer market has taken a hit. Studies show that mobile phone photography has devastated the
camera industry.
The dimension of business environment highlighted in the above case is:

a) Social Environment b) Technological Environment

c) Economic Environment d) Political Environment

3. In a recent ruling, the Supreme Court of India has ordered an immediate stop on commercial activities in a 500- [1]
metre radius of the Taj Mahal and asked Agra Development Authority to ensure compliance of its directive.
Which dimension of business environment is reflected here?

a) Legal b) Political

c) Technological d) Social
4. What is the decision to invest in fixed assets called? [1]

a) Management of working capital b) Financing decision

c) Capital budgeting d) Dividend decision

 5. Which of the following is not a step in the process of Controlling function of management? [1]

a) Taking corrective action b) Comparing actual performance with

standards

c) Assignment of duties d) Setting performance standards

6. Highlight the feature of management depicted by the image given here. [1]

a) Goal-oriented b) Pervasive

c) Group activity d) Dynamic

7. [1]

a) Customers b) Government

c) Financial markets d) Business

8. The manager of Purnima Industries is overburdened with routine work and is unable to concentrate on core [1]
issues of the company. The overcome this problem, he entrusted some of his responsibility and authority to his
immediate subordinate to share some of his routine work. Which concept of management is used by the
manager?

a) Responsibility b) Delegation

c) Authority d) Decentralisation
9. Which of the following statements is true regarding marketing? [1]
i. It is a process whereby people exchange goods and services for money.
ii. It has been referred to as performance of business activities that direct the flow of goods and services from
producers to consumers.
iii. It includes many activities that are performed even before goods are actually produced and continue even
after the goods have been sold.
iv. All of these

a) Option (iv) b) Option (ii)

c) Option (i) d) Option (iii)

10. Assertion (A): Social objectives are met by the organisation in order to avail tax benefits. [1]
Reason (R): The supply of quality products at a reasonable price is an example of a social objective.

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

c) A is true but R is false. d) A is false but R is true.

11. ________ is helpful in increasing the role of the subordinates in the organisation. [1]

a) Centralisation b) Cooperation

c) Decentralisation d) Delegation
12. What type of instruments are traded in a Money Market? [1]

a) Call money b) Commercial bills

c) All of these d) Treasury bills

13. Statement I: Under the Product concept of marketing management, greater emphasis was placed on improving [1]
the production and distribution efficiency of the firms.
Statement II: Product improvement became the key to profit maximisation of a firm, under the concept of
product orientation.

a) Statement II is correct and Statement I is not b) Statement I is correct and Statement II is not
correct. correct.

c) Both the Statements I and II are not correct. d) Both the Statements I and II are correct.
14. Match the following: [1]

(i) Reduction in bank rate (a) Social environment

(ii) An increasing number of working women (b) Legal environment

(iii) Prohibition of alcohol advertisements (c) Economic environment

(iv) On-line flight booking (d) Technological environment

a) (i) - (b), (ii) - (d), (iii) - (a), (iv) - (c) b) (i) - (a), (ii) - (b), (iii) - (c), (iv) - (d)

c) (i) - (b), (ii) - (c), (iii) - (d), (iv) - (a) d) (i) - (c), (ii) - (a), (iii) - (b), (iv) - (d)
15. Firms believe that aggressive selling and promotional efforts will convince a customer to buy product. Which [1]
concept of marketing management is this?

a) Selling Concept b) Product Concept

c) Production Concept d) Societal Marketing Concept

16. Treasury bill is issued by: [1]
i. development of the financial institution
ii. commercial bank
iii. selected individuals
iv. reserve bank of India

a) iii and iv b) only iv

c) ii and iii d) i and ii

17. Under Industrial Policy the role of ________ has been decided. [1]

a) public and private sector b) private sector

c) public sector d) government

18. A marketer of colour TV having 20% of the current market share of the country aims at enhancing the market [1]
share to 50 percent in next three years. For achieving this objective he specified an action programme. The
function of marketing being discussed above is ________.

a) Marketing planning b) Promotion

c) Standardising and Grading d) Gathering and Analysing market

 information
19. Pepsi offers ₹ 5 to the customer on return of empty bottle. Identify which technique is used by Pepsi. [1]

a) Refund b) Discount

c) Usable benefit d) Rebate

20. ________ is not included in the controlling process. [1]

a) Comparison of actual performance with b) Doing work of financial management

standards

c) Measurement of actual performance d) Analysing deviations

21. XYZ Ltd. is a management oriented company. Time and again all the employees learn from their seniors various [3]
ways of dealing with diverse situations. They are provided training whenever required. They are also given
incentives both financial as well as non financial. The result is employees see their development in the
organisation. The organisation tries to behave as a responsible constituent of society and always creates
good quality products. It has a very good image in the market. The training modules are superb and the
employees always try to find unique ways of providing solutions in the context of rapidly changing business
environment. This has helped the organisation to adjust frequently in a very good manner.
Which importance of management is highlighted here? Also identify the lines.
22. Identify and state the type of test in the selection process that measures the potential of an employee for learning [3]
new skills.
OR
Estimating manpower requirements is not merely knowing how many persons we need. What else is needed
while estimating manpower requirements? State any two points.
23. Ritu is a regional manager of Elpis technology Ltd. She is a hardworking employee and is trying to reduce [3]
wastage of resources in her company. She has set standards for performance of different activities and is
ensuring that targets are met according to these standards with minimal wastage of resources. She has set up
CCTV cameras which helps her to keep a close check on the activities of the subordinates and know how the
employees are performing. She also rewards the employees with a bonus when these standards are met. She is
trying her best to ensure a good performance of her team this year through the application of an important
function of management. Explain any two benefits of the function of management highlighted above.
24. KLM Bank Ltd. is a leading bank with various branches across the country. On 27th Jan. 2022, it faced a sudden [3]
temporary shortage in cash balance in one of its branches. On the same day, it was decided by its directors to
borrow funds from another bank for two days to maintain its cash reserve ratio.
Identify and explain the money market instrument used by KLM Bank Ltd. to meet its short-term funds
requirement.
OR
What is meant by primary market? Explain any two methods of floating new issues in the primary market.
25. Identify and brief the two concepts explained below. [4]
‘Some learning opportunities are designed and delivered to improve skills and abilities of employees where as
some others are designed to help in the growth of individuals in all respects.’
OR
Provide any four limitations of using internal sources of recruitment.
26. Neeraj has been working as a sewing machine operator in an export house for the past ten years. His basic work [4]
 is to seam the parts of a garment together and attach buttons, hooks, zippers, and accessories to produce
clothing. Considering the fact that Neeraj is an experienced operator, he is well versed with the fundamentals of
industrial production and possesses good communication skills. The plant superintendent in the factory
recommends Neeraj's name to the production manager for the post of supervisor which will fall vacant after a
month on the retirement of the present supervisor. Consequently, Neeraj is assigned the post of supervisor and
his salary is increased accordingly. Moreover, as per the policy of the export house, he is offered free medical aid
and education to his two children.
In the context of the above case:
a. Identify the type of source of recruitment used by the export house to fill up the post of supervisor. Give any
two advantages of using this source.
b. Identify the types of financial incentives offered to Neeraj by quoting lines from the paragraph.
OR
Name the barrier mentioned through the following cases:
1. These are concerned with problems and obstructions in the process of encoding and decoding of message into
words or impressions.
2. A worried person cannot communicate properly and an angry receiver cannot understand the real meaning of
message.
3. Personal factors of both sender and receiver may exert influence on effective communication.
4. Factors relating to organisation structure, authority relationships, rules and regulations may act as barriers.
27. It takes place throughout the life of the organisation irrespective of people occupying managerial positions. [4]
Mention the characteristic of directing highlighted here and also explain two more characteristics.
28. Harish is engaged in the warehousing business and his warehouses are generally used by businessmen to store [4]
fruits. Identify the working capital requirements of Harish giving reasons in support of your answer. Further,
Harish wants to expand and diversify his warehousing business. Explain any two factors that will affect his fixed
capital requirements.
29. Radhika Limited manufactures blankets. Company’s history has been satisfactory, but for the past some time, [4]
its cash flow position is in a bad shape. That is why a company has not been able to pay sufficient dividends to
its equity shareholders. When Mrs. Rakhi Khetarpal, the finance manager, tried to find out the causes of the poor
financial situation of the company, she observed that the control of the company was in the hands of several
persons who were unable to take any concrete decision. To come out of this financial crisis, Mrs. Khetarpal has
been deliberating on the kind of source of finance that needs to be tapped to arrange funds. She wants to make
use of such a source as does not prove to be a fixed burden on the company. She has also to keep in mind that the
company has got its premises on rent and the rent is exorbitant. Similarly, it has to bear the burden of fixed
salaries. She is also worried about the fact that in the future control of the company should not be in the hands of
too many persons.
Above discussion hints at those factors which help the finance manager in deciding as to which financial source
(Equity shares or Debentures) he should tap for the needed funds. Of the four factors mentioned here, two are in
favour of issuing equity shares and the other two are in favour of issuing debentures. Identify these factors and
explain by underscoring the relevant lines.
30. State any five responsibilities that should be kept in mind by a consumer while purchasing and using/consuming [4]
goods and services.
31. Bhasin limited was engaged in the business of food processing and selling its products under a popular brand. [6]
 Lately the business was expanding due to good quality and reasonable prices. Also with more people working
the market for processed food was increasing. New players were also coming to cash in on the new trend. In
order to keep its market share in the short run the company directed its existing workforce to work overtime. But
this resulted in many problems.
Due to increased pressure of work the efficiency of the workers declined.
Sometimes the subordinates had to work for more than one superior resulting in declining efficiency.
The divisions that were previously working on one product were also made to work on two or more products.
This resulted in a lot of overlapping and wastage.
The workers were becoming indisciplined.
The spirit of teamwork, which had characterized the company, previously was beginning to wane.
Workers were feeling cheated and initiative was declining. The quality of the products was beginning to decline
and market share was on the verge of decrease. Actually the company had implemented changes without
creating the required infrastructure.
Identify by quoting lines from the above the Principles/Technique of Management that were being violated by
the company.
OR
'Work is Worship' is a leading construction company. The organisation has grown from strength to strength because
of its innovative ideas and scientific approach of working. Ten years back the organisation went through a revolution.
All the operations and activities were properly noticed and the standard times taken to perform them were noted. This
took a few months and the company could find out the number of workers required along with the number of days to
be involved in the various manufacturing processes. A year later they noticing the stress involved in the lives of the
workers. The amount and frequency of rest intervals in finishing a particular task were noted. This helped the
company in optimizing the rest intervals for the workers so that their outputs could be increased. After six more
months the company decided to reward the efficient workers. A different rate of wage payment was decided for those
workers who performed above the standard. The standard was decided. This led to a revolutionary change in the
perspective of the workers who now started giving their full efforts in order to increase their wages.
Which concept of management has been discussed in the above case? Name the three types of this management
concept highlighted above. Also identify the lines where these types have been indicated.
32. Answer the following questions: [6]
a. What would be the consequences if there was no planning?
b. How does planning provide the basis of control?
c. What does 'primacy of planning' refer to?
d. Why is planning an intellectual activity of thinking rather than doing?
e. Can planning eliminate changes/uncertain events? Give reason.
OR
Planning is important as it provides directions for action, reduces the risks of uncertainty and facilitates decision
making. Explain.
33. As the head boy and head girl of Trakashay Public School', Deepak Chugh and Deepika Chawla have been given [6]
the responsibility of hosting the Teacher's Day programme in the school. In order to conduct the programme in a
systematic way, Deepak and Deepika first called a meeting of the student council. In the meeting, they decided
about the content of the programme after taking into consideration the different available alternatives and
choosing the best alternative among them. Then the various tasks required to be performed were identified and
 divided in accordance with a predetermined schedule made by them. After that, they grouped the similar
activities into main groups as skit group, choir group, instrumental music group and contemporary dance group.
Then each group was placed under the charge of a council member in accordance with his/her skills and
competencies. These council members were in turn informed that they have to take orders and will be
accountable only to Deepak and Deepika so as to facilitate coordination amongst various groups.
In the context of the above case:
a. Identify and explain the functions of management is discussed.
b. Describe briefly any two points highlighting the importance of each of the functions of management as
identified in part (a) of the question.
c. State any two values that 'Prakashay Public School' wants to communicate to society.
34. Pushpanjali Ltd. is manufacturing chocolates, biscuits, cakes and other similar products. The company is not [6]
generating enough profits. Saurabh, the Marketing manager of the company got a survey conducted to find out
the reasons. The findings of the survey revealed that in spite of better quality, the customers were not able to
distinguish the products of the company from its competitors. Though the customers wanted to buy the products
of ‘Pushpanjali Ltd.’ again and again because of its good quality, but they were not able to identify its products
in the market. Because of this, the sales of the company could not pick up resulting in inadequate profits.
Saurabh, the Marketing manager now realised that ‘Pushpanjali Ltd.’ had forgotten to take one of the most
important decisions related to the product.
What decision should ‘Pushpanjali Ltd.’ take so that its customers are able to identify its products in the market?
Explain the benefits that may result to ‘Pushpanjali Ltd.’ and its customers if the above decision is taken.