Curious Minds Academy

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Nurturing Future…

Class-12 CBSE Subject: BST MM : 80 Marks Time : 3 Hr

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General Instructions:
A) This question paper contains 34 questions.
B) Marks are indicated against each question.
C) Answers should be brief and to the point.
D) Answers to the questions carrying 3 marks may be from 50 to words.
E) Answers to the questions carrying 4 marks may be about 150 words.
F) Answers to the questions carrying 6 marks may be about 200 words.
G) Attempt all parts of the questions together.

1. Read the following statements-Assertion (A) and Reason (R), and choose one of the correct alternatives
given below: 1
Assertion (A): The principles of management are yet to be evolved.
Reason (R): Principles of Management are said to be evolutionary in nature as these principles have evolved over a
long period of time with continuous practice and experimentation.
Alternatives:
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 but 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

2. Read the following statements carefully. 1

Statement I: Encoding is the process of converting a message into communication symbols such as words,
pictures, gestures etc. by the sender for transmission.
Statement II: Decoding is the process of converting encoded symbols of the sender.
Choose the correct option from the options given below:
A) Statement I is true and II is false B) Statement II is true and I is false
C) Both the statements are true D) Both the statements are false

3. Hemant bought a packet of chips from a local shopkeeper and found that the ingredients given on apology state
not legible. He complained about it to the company. The company sent a written new patating that they will make
sure that existing packets are withdrawn from the market and Whickets with legible labels are soon made
available.
Which consumer right is being exercised by Hemant? 1
A) Right to choose B) Right to be heard C) Right to safety D) None of these

4. Match the marketing philosophies in Column I with their main focus in Column II. 1

A) i ii iii) B) (iii),
C) D) ii

5. ____________ is a factor affecting the capital structure of a company. 1

A) Cash flow position B) Flexibility C) Control consideration D) All of these
6. Identify the responsibility of consumers being highlighted in the picture given below. 1

A) Be aware about various goods and services available in the market so that an intelligent and wise choice can be
made.
B) Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods,
FPO mark on food products, Hallmark on jewellery, etc.
C) Learn about the risks associated with products and services follow manufacturer’s instructions and use the
products safely.
D) Ask for a cash memo on purchase of goods or services.

7. Which of the following is the primary aim of financial management? 1

A) Optimum utilization of resources B) Link present with future
C) Ensures availability of funds wherever required D) Wealth maximization

8. The management of an electronics firm suspected that their two employees were robbing hired investigators
who advised the firm to install a software program that could secretly log every single stroke of the suspects
computer keys and send an encrypted e-mail report back to them. Investigators revealed that the two employees
were deleting orders from the corporate books after processing them and pocketing the revenues. The programme
picked up on their plans to steal a large shipment of goods late one night. When the suspects entered, they were
arrested and charged with embezzlement.
State the importance of the function of ’Controlling’ highlighted in the above case. 1
A) Controlling ensures order and discipline. B) Controlling improves employees’ morale.
C) Controlling judges accuracy of standards. D) Controlling accomplishes organisational goals.

9. On the introduction of ’Goods and Services Tax Act’, experts in the field of business started analysing and
forecasting its impact on various sectors and industries. Vivek, an established businessman, attended a few
seminars and conferences organized by such experts to familiarize himself with this information. He wanted to use
these forecasts to reduce the uncertainty in making decisions for the future in his business.
Name the step in the planning process that is being discussed in the above paragraph. 1
A) Follow up action B) Selection of alternative
C) Setting Objectives D) Developing premises

10. The forces relating to scientific improvements and innovations which provide new ways, methods and
techniques of producing goods and services and operating a business is: 1
A) Social environment B) Technological environment
C) Internal environment D) Micro environment

11. Arrange the following steps in the process of controlling in the correct sequence 1
i) Measurement of Actual Performance
iii) Comparing Actual Performance with Standards
ii) Analysing Deviations
iv) Setting Performance Standards Choose the correct option:
A) (i), (ii), (iv), (iii) B) (iii), (ii), (i), (iv) C) D) (ii), (iii), (i), (iv)

12. The managers at_____________ of an organisation level of management are responsible for the welfare
and survival 1
A) Top B) Middle C) Lower D) All of these

13. The requirement of working capital will be more for a business concern manufacturing: 1
A) Bread B) Coolers C) Both (a) and (b) D) Neither (a) nor (b)

14. Choose the function of management responsible for motivating employees and giving instructing to them
to perform the tasks assigned to them. 1
A) Planning B) Staffing C) Directing D) Controlling

15. Mansi saw ’Buy one get one free’ printed on the label of the package of a mosquito repellant. The
function which labelling is performing here is: 1
A) Gives information to consumer B) Describes the product and specifies its content
C) Promotes the product D) All of these

16. The functions of management complementary to each other are: 1

A) Planning and Organising B) Organising and Staffing
C) Controlling and Planning D) Directing and Controlling

17. Read the following statements carefully. 1

Statement I: Accountability can be delegated.
Statement II: Responsibility can be delegated completely.
Choose the correct option from the options given below:
A) Statement I is true and II is false B) Statement II is true and I is false
C) Both the statements are true D) Both the statements are false

18. A company dealing in apparels has decided to clear its stock. It has a huge pile of unsold stock in all its
branches across the country. It has decided to give discount on its products. It even has decided to go for various
fashion shows in different colleges. They also have decided to sponsor a few events.
Identify the marketing management philosophy highlighted above. 1
A) Marketing concept B) Selling concept C) Production concept D) Product concept

19. Which of the following is a factor affecting dividend decision? 1

A) Cash flow position B) Stability of earnings C) Contractual constraints D) All of these

20. Which type of recruitment gives the management a wider choice while selecting the people for
employment? 1
A) External recruitment B) Internal recruitment
C) Recruitment through labour contractor D) None of these

21. Differentiate between Functional and Divisional Structure on the basis of: 3
A) Formation B) Responsibility C) Cost involved
OR
State the meaning of essential elements of delegation.
22. Samta Ltd. is in need of finance to expand the business. The finance manager, Sumit, is looking into different
sources of funds available. After doing the cost and risk analysis, he found debt as the best option but as the
company has to pay huge insurance premium for the plant and machinery and lease for the building, the decision
was taken to raise funds through equity. Identify and explain the factor which affected this decision.
23. How does management help in the development of society? 3
OR
Identify the type of dimensions of environment in the following cases:
A) It includes factors like money supply, price level, monetary policy etc.
B) Increased awareness towards health has increased demand for organic food.
C) A stable government builds up confidence among the firms to invest in big projects. 3

24. 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. 3

25. How can the company satisfy social and esteem needs of its employees? 4

26. Amit Sports Ltd. was in the business of manufacturing treadmills and had a monopoly in the market. The
business was doing very well and the company was consistently able to meet its objective of increase in sales
year after year. Encouraged by the good track record, Mr. Akhil, the Managing Director of the company, kept an
ambitious target of increase in sales for the next year. The same year, two competitors entered the market and
the company could not achieve its targets. Identify and explain the limitations of one of the functions of
management because of which the company was not able to meet its targets. 4

27. Few years ago, there were many malpractices and unfair trading practices like price rigging, unofficial
premium on new shares etc. All these had eroded investors’ confidence and multiplied their grievances. To
overcome these, Government of India decided to set up a separate regulatory body for this purpose.
A) Name the separate body set up by the Government of India.
B) List its three regulatory functions. 4

28. "If you try to control everything, you may end up in controlling nothing." Comment. 4
OR
How does controlling simplify the task of a manager? 4

29. Which process prepares a blue print of an organizations future preparations relating to finance? Give any three
reasons why this process is needed? 4

30. Mr. Kapoor bought a perfume from a Departmental Store and took the cash memo of which he had paid
to them. Later on, he found that the MRP of the perfume was only, but the shopkeeper had put a sticker of
on the original price.
A) Do you think that the consumer right is violated here? If yes, then name the right and explain it.
B) State any two responsibilities of a consumer other than the one the one referred here. 4
OR
You have been appointed as a Brand Manager of Ford Motors. The Company is to introduce a compact small car
in the Indian Market. The name of the car is yet to be decided. You have been asked to chair a brainstorming
session. Before the suggestions come forward, you have to briefly explain the participants as to what constitutes a
good brand name with the help of suitable examples. 4

31. Mahi was working as a supervisor with ’Neer Purifier Ltd.’ which was producing water purifiers. The target of
the company was to produce 200 water purifiers every day. His job was to make sure that work goes on smoothly
and there was no interruption in production. To achieve this, he always gives orders and insists that they are
obeyed. He believes that reward or punishment both can be given depending upon the performance.
A) Identify and explain the leadership style being adopted by Mahi.
B) Also, explain the other types of leadership style other than identified in part (A) above. (2 + 4 = 6)

32. ’Health Relax Ltd.’ is one of India’s leading consumer healthcare brands in diagnostic services. It has an
integrated nationwide network of diagnostic centres. The company was exploring new avenues for its expansion.
The top level managers analysed the business environment and found that since the year 2023 was the
International Year of Millets, it was expected that the global demand for millets will grow by around annually.
India being one of the leading producer and exporter of millets, it was realised that there was a great business
opportunity in the millet industry. The Board of Directors approved the idea of venturing into the business of
selling bread, noodles and dosa mix made of millets. The company had to restructure itself. It diversified into
varied product categories and created a structure comprising of separate business units. Each unit had a manager
responsible for performance who had authority over the unit. Manpower was grouped on the basis of different
products manufactured.
A) Identify the type of organizational structure of Health Relax Ltd. after restructuring and give its meaning.
B) Explain any two advantages and two disadvantages of the type of organisational structure identified in part
(A) above. (2 + 4 = 6)

33. ‘Pricing of a product is an important and effective competitive weapon in marketing which depends upon
various factors’. Explain any four such factors. 6
OR
What is meant by Packaging? Give any four points explaining why packaging is important. 6

34. "Coordination is not a separate function of management; it is the very essence of managements." Clarify. 6
OR
Explain the following principles of management:
A) Scalar chain
B) Subordination of individual interest to general interest (