R.D.

RAJPAL SCHOOL
PRE-BOARDEXAMINATION (2023-24)

CLASS: XII SUBJECT-BUSINESS STUDIES (SET-A)

TIME ALLOWED: 3 HOURS MAXIMUM MARKS: 80
NO. OF PAGES: 07

General Instructions:
1) This question paper contains 34 questions.
2) All the questions are compulsory.
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.

Q1. A special factor of the financial objectives of a business can be measured by Sales Volume, Number
of Employees, Number of Products, Capital Investment, etc. Name that factor out of the following: 1
(a) Growth (b) Profit (c) Survival (d) None of these

Q2. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct alternatives
given below: 1
Assertion (A): Management is an activity which is necessary wherever there is a group of people
working in an organisation.
Reason (R): People in an organisation are performing diverse tasks but they are working towards the
same goal.
(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 but Reason (R) is true.

Q3. In order to successfully realise the objectives of an organisation, first of all it is ensured which
activities
will have to be performed. In the list of activities, all the activities, both big and small, are included.
But it is not possible to set up separate departments for all the activities. Some similar activities are put
together in the same department. In this way some necessary departments are set up. The reason for
doing so is to exercise control over unnecessary administrative expenses.
Identify the concept of management under which similar activities are put together and departments
are set up. 1
(a) Departmentalisation (b) Delegation
(c) Decentralisation (d) Centralization

Q4. Name the function of the management which is concerned with monitoring organisational
performance towards the attainment of organisational goals. 1

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 (a) Planning (b) Organising (c) Directing (d) Controlling
Q5. ______affect the firms of an industry directly e.g., customers, suppliers’ competitive firms etc. 1
(a) Specific forces (b) General forces (c) Economic forces (d) Political forces

Q6. For the following statements, choose the correct option: 1

Statement I: Some deviation in performance can be expected in all activities.
Statement II: It is important to determine the acceptable range of deviations.
(a) Statement I is correct and Statement II is not correct.
(b) Statement II is correct and Statement I is not correct.
(c) Both the Statements I and II are correct.
(d) Both the Statements I and II are not correct.

Q7. Which of the following statement is true? 1

(a) A higher tax rate makes debt relatively costlier.
(b) A company cannot use debt beyond a point.
(c) For maximisation of shareholder's wealth, debt can be used up to any level if ROI is greater than
cost of debt.
(d) During a bearish phase, equity shares are more easily sold even at a higher price.

Q8. You are the manager of Impex Ferro Ltd. It is reported to you that postal expenses have increased by
10% and cost of iron ore has increased by 2% over standard rates Which of the two deviations will be
more critical to you? 1
(a) Increase in postal expenses (b) Increase in cost of iron ore.
(c) Both (a) & (b) (d) None of these

Q9. The present government wants to give the skilled youth full opportunity to come forward. The
government's intention is that the youth should display their skill by coming forward. In order to make
their skill fully realise, the government launched the 'Start up India Scheme". Mainly, in this scheme it
is declared that the person who brings something new related to business (as new process, new
article,
new service, etc.) will be helped by the government in several ways. The young men understood this
scheme and took full advantage from it. Nowadays they have got employment for themselves as well
as are providing employment to several other unemployed young men.
Identify the factor of business environment to which the above stated event is related. 1
(a) Economic Environment (b) Social Environment
(c) Technological Environment (d) Political Environment

Q10. The settlement cycle of National Stock Exchange is: 1

(a) T+5 (b) T+3 (c) T+2 (d) T+1

Q11. Raman, Joginder, John, Iqbal and Shreya are friends. They are operating different businesses. Each
one has his/her concept regarding operating their business. Raman believes in producing products at a
large scale, thereby decreasing the average cost of the products and selling it at a reasonable price.
Joginder focuses on providing best quality products because he believes that customer always wishes
to buy a good quality product. The price of the product is secondary. John is of the belief that most
important aspect of business is sales and so he undertakes aggressive selling and promotional effort.
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 Iqbal believes that his firm can achieve its goals only by identifying the needs of the customer
satisfying them better than the competitors. Shreya feels that her firm has a responsibility towards the
society as well. So, she provides customer satisfaction along with using techniques which are
environment friendly.
Identify the marketing concepts followed by each of them. 1
(a) Raman- Product concept; Joginder Production concept, John concept and Shreya- Societal
marketing concept
(b) Raman- Production concept; Joginder- Product concept, John -Selling concept, Iqbal - Marketing
concept, and Shreya- Societal - concept
(c) Raman- Production concept; Joginder Product concept, John Selling concept and Iqbal-Societal
Shreya -marketing concept
(d) Raman- Production concept; Joginder marketing concept and Shreya- Marketing concept

Q12. Which concept of consumer Protection is depicted in the picture given below: 1

Q13. Mr Rishabh Bhandari is the chief manager in 'Bhandari Pustak Parkashans'. He is fond of continuing
to present innovative ideas while planning for his business. His ideas are usually very significant. It
has been observed several times that these very ideas take the form of concrete plans. This is the very
reason that Mr Bhandari's contribution to the growth and prosperity of the company continues to be
quite great. 1
Identify the importance of planning' described above.
(a) Planning provides direction.
(b) Planning reduces the risk of uncertainty.
(c) Planning reduces overlapping and wasteful activities.
(d) Planning promotes innovative ideas.

Q14. What is included in psychological test? 1

(a) Interest Test (b) Intelligence Test (c) Aptitude Test (d) All of these

Q15. __________help companies raise finance, provide liquidity and safety of investment to the investors
and enhance the credit worthiness of individual companies. 1

(a) Money Market (b) Capital Market

(c) Primary Market (d) Stock Exchange

Q16. 'Riya Health Care Limited', established with the objective of taking care of the people's health. This
was the first company of this type established in its field. There being no competition in the market
was something good for the company. But when the company’s business was about to pick up,
several
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 competing companies got established in that field. Consequently, the comfortable position of the
company came to an end. Hardly two years had gone since the company was established, when there
occurred a big change in the priorities of the customers. Now they got tempted towards the local
health
promoting products instead of company’s products. In this way, the company had to face great
difficulties to keep itself established in the market. Which feature of business environment does the
above event acquaint us with? 1
(a) Dynamic Nature (b) Inter-relatedness
(c) Totality of External Forces (d) Specific and General Forces

Q17. While designing the organisational structure, managers undertake an analysis of the decisions and
the decision-making levels, activities as well as relationship among them with a view to evolving the
horizontal and vertical dimensions of the structure. Thus, various job positions are created. Clearly,
performance of each job necessitates the appointment of a person with a specific set of educational
qualifications, skills, prior experience and so on. Identify the step of staffing function of management
highlighted above. 1
(a) Estimating manpower requirements (b) Recruitment
(c) Selection (d) Placement and Orientation

Q18. Which component of the Product mix is depicted in the following picture? 1
(a) Branding (b) Pricing (c) Labelling (d) Packaging

Q19. A complaint can be made in the State Commission when the value of the goods or services paid as
Consideration 1
(a) does not exceed 1 crore (b) does not exceed 20 lakhs
(c) exceeds 1 crore but does not exceed 10 crore (d) exceeds 10 crores

Q20. The part of brand which gives legal protection is called___________. 1

(a) Brand Mark (b) Brand (c) Trade Mark (d) Brand Name

Q21. Principles of Taylor and Fayol are mutually complementary. One believed that the management
should scientifically select the person and the work assigned should suit his/her physical an
intellectual capability, while the other suggested that the work can be performed more efficiently if
divided into specialised tasks. Identify and explain the principles of Fayol and Taylor referred to in the
above para.3
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 OR
Beena, a student of management, likes to relate what she learnt in class to real life situations. She
observed many situations while watching educational programmes on television that remind her of
concepts of Scientific Management. In one such programme, factories manufacturing parts for
products like automobiles, computers and mobile phones were being telecast. Name and explain the
technique of Scientific Management that should be adhered to, while manufacturing parts for such
products. 3

Q22. Is 'management' a full-fledged profession? Give any three reasons in support of your answer. 3

Q23. Explain any three functions performed by SEBI. 3

Q24. The market for Herbal Cosmetics in India is growing at a remarkable pace of 15-20% per annum.
This clearly indicates that today's aware and educated consumer knows what is good for him and
what is not. His tastes and preferences are undergoing a major change. The growth in the herbal
cosmetics market is due to a many of factors like rising health consciousness, changing lifestyles,
increase in disposable income and growing availability of herbal cosmetics products in shopping
malls, retail outlets and online. On the basis of the given information, answer the following
questions:
(a) By quoting lines from the paragraph identify the various components general forces which have
led to this change. 3

Q25. 'Filling vacancies for various job positions from within the organisation has many limitations'. State
any four such limitations. 4
OR
Training not only improves the current or future performance of employees but also benefits the
organisation in many ways. State any four such benefits.

Q26. State the assumptions of "Maslow's Need hierarchy Theory of motivation."

OR
(b) State any four psychological barriers of communication. 4

Q27. Explain the responsibilities of a consumer. 4

Q28. Read the following text and answer question on the basis of the same:
A business that doesn't grow dies', says Mr. Shah, the owner of Shah Marble Ltd. with glorious 36
months of its grand success having a capital base of 80 crore. Within a short span of time, the
company could generate cash flow which not only covered fixed cash payment obligations but also
create sufficient buffer. The company is on the growth path and a new breed of consumers is eager to
buy the Italian marble sold by Shah Marble Ltd. To meet the increasing demand, Mr Shah decided to
expand his business by acquiring a mine. This required an investment of 120 crore. To seek advice in
this matter, he called his financial advisor Mr. Seth who advised him about the judicious mix of equity
(40%) and Debt (60%). Mr. Seth also suggested him to take loan from a financial institution as the
cost of raising funds from financial institutions is low. Though this will increase the financial risk but
will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute
the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense
for computation of tax liability. After due deliberations with Mr. Seth, Mr. Shah decided to raise funds

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 from a financial institution.
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(i) "To seek advice in this matter, he called his financial advisor Mr. Seth who advised him about the
judicious mix of equity (40%) and Debt (60%)." Identify the concept of Financial Management as
advised by Mr. Seth in the above situation.
(a) Financial Leverage (b) Trading on Equity
(c) Capital Structure (d) Financial Planning
(ii) "Mr. Seth also suggested him to take loan from a financial institution..." Identify the source of
finance highlighted above.
(a) Debt (b) Equity (c) Current Liabilities (d) None of these

(iii) "...the cost of raising funds from financial institutions is low." Identify the factor affecting
the concept of financial management identified in (i).
(a) Cost of Debt (b) Fixed operating costs
(c) Cost of Equity (d) Flotation costs

(iv) "...the interest on loan is a tax-deductible expense for computation of tax liability." Identify the
factor affecting the concept of financial management identified in Q(i).
(a) Cash Flow Position (b) Flotation costs
(c) Tax Rate (d) Control considerations

Q29. What do mean by Capital Structure? Explain the factors affecting the capital structure of an
organization. 4

Q30. Mr Nath, a recently appointed production manager of Suntech Ltd. has decided to produce jute bags
instead of plastic bags as these are banned by the government. He set a target of producing 1000 jute
bags a day. It was reported that the employees were not able to achieve the target. After analysis he
found that employees were demotivated and not putting in their best for achieving the target. Mr
Nath's behaviour is good towards the employees. His attitude is always positive. So, he announced
various incentive schemes for the employees like:
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 Installing award or certificate for best performance
 Rewarding an employee for giving valuable suggestions
 congratulating the employees for good performance
(a) Identify the functions of management highlighted in the above paragraph.
(b) State the 'incentive' under which the employees are motivated.

Q31. Explain the following limitations of planning: 6

(a) Planning reduces overlapping of wasteful activities
(b) Planning reduces the risk of uncertainty
OR
Name and explain the type of plan highlighted in the following statements. 6
(a) It facilitates comparison of actual results with the planned ones.
(b) A discount of 10% will be offered to all the customers buying goods

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Q32. A company is manufacturing electronics. There is a lot of emphasis on work, the relationship
between various job positions is clearly specified and there is an established chain of command.
However, there is delay in decision making and employees are discouraged to interact beyond their
officially defined roles. Creative talent is not recognized; hence, job satisfaction of employees is
reducing.
(a) Suggest how the organization can overcome the problems faced by it. 2
(b) State any four benefits it will derive from your suggestion. 4

Q33. Explain the following Principles of management. 6

(a) Authority and Responsibility
(b) Esprit De corps

Q34. 'The activities that communicate availability, features, merits, etc. of the products and services to the
target customers and persuade them to buy these products and services is an important element of
marketing mix. Explain any three tools used by the marketers for this purpose. 6
OR
Identify the concept of marketing in the following cases:
(i) This concept places more importance to selling and promotional efforts to sell the product.
(ii) This concept believes in cost reduction through mass production.
(iii) It gives more importance to 'consumer welfare' instead of consumer satisfaction.
(iv) This concept assumes that customers can be attracted by making continuous improvement in
the product.
(v) This concept aims to identify the needs of consumers and to satisfy the need better than
competitors.
(vi) Consumers can be convinced and manipulated to buy the products.