Birla Public School, Doha - Qatar

Pre Board - I Examination – November 2024

Serial No. XXXXX Code No. 054/ 1/ 3

Business Studies
Class: XII Time Allowed: 3hrs
Date: 17/11/2024 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. This Question Paper has 9 printed pages.
8. Reading time is 15 minutes
9. Question paper attempting time - 3 hrs.
--------------------------------------------------------------------------------------------------------------------------------------

1. The management of a bag manufacturing company has recently changed.

Due to this, an improvement can be felt in the way company functions.
Now, targets are met according to plans, whereas earlier deadlines whereas
earlier deadlines were never given importance. Now there is orderliness, instead of
chaos in the organisation and the employees are happy and satisfied. From the
following identify the characteristics of management which is highlighted in the
above case.
(a) Management is a goal-oriented process
(b) Management is a dynamic function
(c) Management is an intangible force
(d) Management is a continuous process [1]

2. Resident Welfare Association (RWA) of Noida, Sector 15 decided to organise

Diwali mela on the eve of Diwali. They listed all the activities to be done,
grouped them as per their nature and assigned the activities/duties to different
people of their association. After completion of the mela they found that it was
not a success. While analysing the reasons the President of RWA found that mere
allocation of work was not enough in the organisation. He found that an
important step in the organising process was missing. Identify the step from
the following:

(a) Assignment of duties

(b) Establishing authority and reporting relationships
(c) Identification and division of work

BPSD/2024/Nov/PB -I/XII/ Business Studies Page 1 of 9

 (d) Departmentalisation [1]

3. Read the following statements—Assertion (A) and Reason (R). Choose one
of the correct alternatives given below:
Assertion (A): As the financial leverage increases the cost of funds also
increases.
Reason (R): It is because the cost of debt is lower than equity

(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 and 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 and Reason (R) is true. [1]

4. Read the following statement carefully and choose the correct alternative:
Statement I: The process of holding securities in an electronic form is called
rematerialisation
Statement II: The Securities and Exchange Board of India(SEBI) has made
it mandatory for the settlement procedures to take place in
demat form in securities.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement I is true; Statement II is false.
(d) Statement II is true; Statement I is false. [1]

5. Joining a job marks the beginning of socialisation of employees at the

workplace. The employee should be given a post for which he has been selected.
'Place the subsequent steps of staffing in a small organisation in the correct
order:

(a) Training and development, promotion and career planning,

performance appraisal, compensation
(b) Performance appraisal, training and development, promotion and
career planning, compensation
(c) Training and development, performance appraisal, promotion and
career planning, compensation
(d) Training and development, performance appraisal, compensation,
promotion and career planning. [1]

6. 'Digilocker' is a flagship initiative of 'Ministry of Electronics and IT',

Government of India. It aims at digital empowerment of the citizens by providing
access to authentic digital documents such as academic certificates
issued by different Examination Boards, Driving Licenses, Vehicle
registrations etc. in a digital format. The above para discusses a few
dimensions of business Environment. Identify the correct dimensions from the
following:

BPSD/2024/Nov/PB -I/XII/ Business Studies Page 2 of 9

 (a) Economic Environment and Technological Environment
(b) Social Environment and Economic Environment
(c) Social Environment and Political Environment
(d) Political Environment and Technological Environment. [1]

7. The picture given below depicts important information related to a decision

that a marketer has to take in the area of product:

(a) Branding (b) labelling (c) Packaging (d) None of the above. [1]

8. Read the following statements—Assertion (A) and Reason (R). Choose one
of the correct alternatives given below:
Assertion (A): By excersing control, a manager seeks to reduce wastage of
resources
Reason (R): With the help of controlling only some activities are performed in
accordance with predetermined standards.
(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 and 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 and Reason (R) is true. [1]

9. The activities whose outcome not only improves the job performance but also
help individuals in the progress towards maturity and actualisation of their
potential capacities is known as ____________.
(a) Training (b) Education
(c) Development. (d) Performance appraisal. [1]

10. Mr Kirti Karan Goyal looks after the Sale and Production both the
Departments of his own firm. At the beginning of the year he determined the
standards of both the departments. For the Sale Department he fixed the objective

BPSD/2024/Nov/PB -I/XII/ Business Studies Page 3 of 9

of sale of 5, 00,000 units. At the time of fixing this objective, he noticed that the
normal production capacity of the Production Department was of 4, 00,000
units. After making a deep study, it was decided that 1, 00,000 units of goods
would be purchased from the market. In this way, Mr Goyal established the balance
of both the departments.
To which of the importance of controlling points is related the above episode?
(a) Facilitating coordination in action (b) Ensuring order and discipline
(c) Improving employee motivation (d) Making efficient use of resources.
[1]

11. Choose the correct option about dividend decision from the options given
below:

(a) It refers to the determination as to how the total funds required will be
made available from various long-term sources.
(b) It refers to deciding about how the funds are invested in different assets.
(c) It refers to the determination of how much of the earning should be
distributed among shareholders by the way of dividend and how much
should be retained in the business.
(d) It refers to the relative proportion of owner's and borrowed funds. [1]

12. Disputes of__________amount are settled at the level of District Commission.

(a) Up to ₹ ten crores (b) Up to₹ five crores

(c) Up to₹ one lakh (d) Up to ₹ one crores [1]

13. Match the 'Dimensions of Business Environment' in Column-I with their

respective statements in Column-II:

Column-I Column-II
A. Economic i) Birth and death rate
B. Legal ii) Money supply in the economy
C. Social iii) Medicines
D. Technological iv) Consumer Protection Act,2019

(a) A–(ii), B–(iv), C- (i), D–(iii) (b) A–(i), B–(ii), C–(iii),D- (iv)
(c) A–(iii), B–(ii), C–(i), D–(iv) (d) A–(iii), B–(i), C–(ii), D–(iv). [1]

14. JKSD India Ltd. fresh from kitchen jams, ketchups, salad dressings and
peanut butter, etc. They appointed salespersons to contact prospective
customers in leading malls to create awareness about their products and develop
product preferences with the aim of making sales. Which tool of promotion is
being used by JKSD India Ltd to market its products?
(a) Advertising (b) Personal Selling
(c) Sales Promotion (d) Public Relations. [1]

BPSD/2024/Nov/PB -I/XII/ Business Studies Page 4 of 9

15. Mr Latif Ieft the school after passing his Matriculation Examination and started
getting training under his uncle Mr Farman. His uncle, a well-known plumber,
had worked for many big offices. He started accompanying his uncle
everyday on work and watched him carefully while working. Latif was an intelligent
boy and learnt each and every thing of work very quickly. Now his uncle
started giving him training to deal with customers. Within no time Latif acquired
a high level skill and become a good plumber. Many big offices started
calling him for water pipe fitting, etc. Identify the method of training discussed
above:

(a) Induction Training (b) Vestibule Training

(c) Internship Training (d) Apprenticeship Training. [1]

16. Which of the following statements is incorrect about the 'Role of Consumer
Organisations".
(a) Providing legal assistance (b) Filing complaints for consumers
(c) Educating the general public (d) Long-term interest of business. [1]

17. ____________refers to the increase in profit earned by the equity

shareholders due to the presence of fixed financial charges like interest.
(a) Capital structure (b) Earning per share
(c) Trading on equity (d) Return on investment. [1]

18. Which of the following is not a factor affecting 'Financing Decision' of a

Company:
(a) Risk (b) Cost.
(c) Cash flow position of company (d) Growth opportunities. [1]

19. Ronit Raj, a marketing manager is a patient of diabetes for which he takes
medicines regularly. One day, on his tour to Patna, he meets with an accident
and is hospitalised. Due to doctors' negligence a delicate nerve of his right leg
is cut, rendering him crippled throughout his life. Identify the consumer right
that has been violated by the doctors under the Consumer Protection Act,
2019 in the above situation.
(a) Right to safety (b) Right to choose
(c) Right to consumer education (d) Right to be heard. [1]

20. Read the following statement carefully and choose the correct alternative:
Statement I: Floatation cost is the chance that a firm would fail to meet its
payment obligation
Statement II:. Higher use of debt decreases the fixed financial charges of a
business.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement I is true; Statement II is false.

BPSD/2024/Nov/PB -I/XII/ Business Studies Page 5 of 9

 (d) Statement II is true; Statement I is false. [1]

21. Explain the following types of plans:

(a)Strategy (b) Objectives
OR [3]
Explain how planning:
(a) May not work in dynamic environment
(b) Does not guarantee success.

22. Explain any three financial incentives of motivation as an element of Directing.

OR [3]
Explain any three psychological barriers of communication.

23. Vedanta Limited has a share capital of ₹10, 00,000 divided into shares of
₹100 each. For expansion purpose, the company requires additional funds of ₹5,
00,000. The management is considering the following alternatives for raising
funds:

Alternative 1: Issue of 5000 Equity shares of ₹100 each

Alternative 2: Issue of 10% Debentures of ₹5, 00,000

The company's present Earnings Before Interest and Tax (EBIT) is ₹4, 00,000
p.a. Assuming that the rate of Return of Investment remains the same after
expansion, which alternative should be used by the company in order to
maximise the returns to the equity shareholders. The Tax rate is 50%. Show the
working. [3]

24. VBR Cinema an Indian multiplex cinema hall was the first to recognize the
change in consumption habits of people. It changed its food menu from
burgers, pizza, soft drinks, etc. and switched over to healthier options like salads
and smoothies, soups and anjeer-based sweets. Within a month, the revenue
of the multiplex from sale of food items doubled. VBR Cinema, by continuously
monitoring the environment and adopting suitable business practices, was able to
improve its revenues and profits and was hopeful that it will continue to succeed
in the market in the long run too. Identify and explain one dimension of business
environment and one point of importance of understanding the business
environment highlighted in the above case. [3]

25. Certain persons who had done their MBA established 'Alpha Limited' with the
aim of earning justifiable profit and doing service to the society. In order to run
their business successfully they took the help of several people. The
people working in the company were doing different activities. Their activities
were different, but their aim was the same. Here the need was to continue
putting in such efforts as may not let the people lose their aim. Therefore, the

BPSD/2024/Nov/PB -I/XII/ Business Studies Page 6 of 9

arrangement made in the company was such that the efforts of all the people
may lead them towards the same path.
(a) Identify and explain the feature of management described in the paragraph
given above.
(b) Also explain three more features of management. [4]

26. Explain any two sources of recruitment for various job positions which bring
new blood in the organisation and provide wider choice.
OR [4]
Staffing not only helps in discovering and obtaining competent personnel for
various jobs but also ensures some more benefits to the organisation. State
any four such benefits.

27. Mr Fernandez is the owner of Unibie Enterprises, carrying on the business of

manufacturing electrical appliances. There is a lot of discontentment in the
organisation and targets are not being met. He asked his son, Michel, who
has recently completed his MBA, to find out the reason. Michel found that
all decision making of the enterprise were in the hands of his father.
Moreover, his father did not have confidence in the competency of the
employees. Thus, the employees were not happy.
(a) Identity any two communication barriers because of which 'Unibie
Enterprise was not able to achieve its target.
(b) State one more barrier each of the types identified in part (a) above. [4]

28. Explain any four points of importance of the controlling function of

management.
OR [4]
Explain the steps in the process of controlling.

29. Mega Ltd. holds an Annual Management Programme every year in the month
of March in which the top managerial personnel formulate plans for the
next year by analysing and predicting the future to meet future events
effectively. As they are responsible for providing direction to the organization,
facts are thoroughly checked through scientific calculations. Detailed plans are
prepared after discussion with professional experts. Preliminary investigations
are also undertaken to find out the viability of the plan. Since, it is an intellectual
activity requiring intelligent, imagination and sound judgement so it is mainly done
by the top management. Usually rest of the members just implement the plans.
Middle level managers are neither allowed to deviate from the plans nor are
they permitted to act on their own. The top management ensures that the
expenses incurred in formulating the plans justify the benefits derived from them.
State any two limitations and any two features of planning discussed above.
[4]

BPSD/2024/Nov/PB -I/XII/ Business Studies Page 7 of 9

30. What are the factors affecting determination of the price of a product or
service. Explain [4]

31. What is a Stock Exchange? Explain the functions of stock exchange.

OR [6]
Explain the steps involved in screen based trading system.

32. Differentiate between functional structure and Divisional Structure

OR [6]
Why Delegation is considered essential for effective organising?

33. Karan Nath took over 'Nath Motor Company' from his ailing father three
months ago. In the past, the company was not performing well. Karan was
determined to improve the company's performance. He observed that the methods
of production as well as selection of employees in the company were not
scientific.

He believed that there was only one best method to maximise efficiency. He
also felt that once the method is developed, the workers of the company
should be trained to learn that 'best method'.

He asked the Production Manager to develop the best method and carry out
the necessary training.

The Production Manager developed this method using several parameters

right from deciding the sequence of operations, place for men, machines
and raw materials till the delivery of the product to the customers. This
method was implemented throughout the organisation. It helped in increasing the
output, improving the quality and reducing the cost and wastage.

Identify and explain the principles and the technique of scientific management
followed by the Production Manager in the above case. [6]

34. BJ Pvt. Ltd. is a company manufacturing organic shampoos with the brand
name ‘Pure Shine’. This name will help the company in creating product
differentiation. To satisfy the needs of the customers in the target market the
company used natural ingredients like curry leaves, neem, rice, etc. The focus of
the company is on satisfaction of customer's needs. To have higher demand
of shampoo it decided to fix a lower price in comparison to the other
shampoos available in the market. To inform the customers about the shampoo
and its features etc., the company used various promotional tools. For maximum
satisfaction of customers, the company provides the contact details of the customer
care centre to handle customer complaints. Identify and explain any three
functions of marketing discussed in the above paragraph.
[6]

BPSD/2024/Nov/PB -I/XII/ Business Studies Page 8 of 9

BPSD/2024/Nov/PB -I/XII/ Business Studies Page 9 of 9