G.

D GOENKA PUBLIC SCHOOL, PASCHIM VIHAR

BUSINESS STUDIES
CLASS XII
CYCLE TEST – 1

TIME ALLOTTED= 50 MINUTES MAXIMUM MARKS- 25

Instructions:
1. Paper consists of 15 questions.
2. Marks are indicated against each question.
3. Write the answers on plain sheet.
4. Mention your name, class, roll number and page number on the top of
each sheet.
5. Make a PDF of your answer sheet and mail it to
[email protected]

Q1. A manager should have the right to punish a subordinate for willfully not obeying a
legitimate order but only after sufficient opportunity has been given to a subordinate
for presenting his/her case. Which managerial principle has been highlighted in the
above case.(1)

Q2. Bhuvan Ltd., a garment manufacturing Company set the target production of 100
garments per month at the estimated cost of Rs. 200 per garment. Mohan, a worker
worked double shift and manufactured around 150 garments but at the estimated cost of
Rs. 230 per garment. On the other hand, Ravi another worker focus on cost and handled
resources very carefully so the manufactured 90 garments but at the estimated cost of
Rs. 190 per garment. Third worker maintained the balance and achieved target of 100
garments at the estimated cost of Rs. 200 per garment.
Identify the quality possessed by Ravi, Mohan and what they are lacking. (1)

Q3. ‘Study Buddy Pvt.’ is company dealing in stationery items. In order to establish
standards of excellence and quality in materials and in the performance of men and
machines, the company adheres to benchmarks during production. Moreover, its
products are available in limited varieties, sizes and dimensions thereby eliminating
superfluous diversity of products. Identify the technique of scientific management which
has been adopted by ‘Study Buddy Pvt. Ltd.’ Explain in brief. (1)

Q4. Sanjeev's basic task is to integrate diverse elements and coordinate the activities of
different departments according to overall objectives of the organization. At which level
of management he is working ___________________. State any one function of this level of
management. (1)

Q5. Principles of management equip the managers to foresee the cause and effect
relationship of their decisions and actions so that the wastages associated with trial and
error approach can be overcome. Identify the point of significance of principles of
management highlighted here. (1)
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Q6. Which of the following statements is FALSE about Taylor and Fayol? (1)
a. Fayol was a mining engineer whereas Taylor was a mechanical engineer.
b. Fayol’s principles are applicable in specialised situations whereas Taylor’s principles
have universal application.
c. Fayol’s principles are applicable at the top level of management whereas Taylor’s
principles are applicable at the shop floor.
d. Fayol’s principles were formed through personal experience whereas Taylor’s
principles were formed through experimentation.

Q7. Use of a blood pressure monitor by a person regularly to check the blood pressure
and take medication accordingly can be related to one of the functions of
management. Identify it. Explain in brief. (1)

Q8. Mr. Rajiv is the owner of ‘Laxmi Dairy.’ He is producing various milk products. He
Always Tests various ways of producing different products and chooses the best and
Most economical way of production. He is also very particular about fixing a place for
everything and he makes sure that all the employees are given a fixed place so that
there is no wastage of time and delay in production.
Which technique of scientific management is applied by Mr. Rajiv? Explain in brief. (1)

Q9. Disha at frameworks Ltd. performs several tasks in a single day. Some days she may
spend more time in planning a future exihibition and on the other day she may spend
time in sorting out an employee's problem. The task of the manager consists of an
ongoing series of functions. Which characteristics of management is highlighted here.(1)

Q10. The management of Amaira Ltd. strongly believes that the members of the
Organization should work toward fulfilled the common organizational goals. This
requires team work and integration of efforts of all individuals departments and
specialists. This is because all the individuals and departments depend on each other
for information and resources to perform their respective activities. Manager needs to
reconcile differences in approach, timing, efforts and interest. At the same time it
should enable all its members to grow and develop. Thus, there is a need to harmonize
individual goals and organizational goals.
State the concept of management discussed above. Briefly explain its one importance.
(1)

Q11. Application Ltd is engaged in manufacturing and distribution of home appliances

Since 1987. It has good name in market as the company is producing good quality
appliances.
It has separate departments for manufacturing, finance, sales, maintenance services
and technical services to achieve specialization.
Since the areas of operations of the company have increased and customers have
become more demanding the company decided to modify the existing principle of
management to meet the changing requirements of environment.
State the principle of management which the company wants to modify to meet the
changing requirements. (1)

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Q12. Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy
products in Maharashtra state. Aman is a holder of Senior Secondary School
Certificate from Central Board of Secondary Education with Business Studies as one
of his elective subjects. Ahmad had done his post-graduation in History and Ally in
dairy farming. One day, there was a serious discussion between Ahmad and Ally
regarding the nature of management, Ahmad argued that management was a
profession. Whereas, Ally argued against it saying that the legal and medical
profession are the only professions because they fulfill all the conditions of profession.
Aman on the basis of his knowledge of business studies explained the nature of
management as a profession to Ahmad and Ally. Explain, how Aman would have
satisfied both Ahmad and Ally? (3)

Q13. Sakaar Foundation is an NGO (Non-Governmental Organisation) working to improve

the lives of children with medical needs, the homeless and victims of natural
disasters. Apart from donations in cash, they collect dry ration, old clothes, Shoes,
toys, books medicines etc from donors. At Sakaar Foundation's office in Lucknow, the
material collected is segregated, classified and put in shelves and boxes that are
labelled systematically. There is a specific place for each of these items and
volunteers put everything at their respective places. The volunteer work is divided
into specific jobs like fund raising, field visits, social media updates and so on. Each
volunteer is part of a particular team, depending on their competency and training.
Each volunteer becomes specialized in their respective field, leading to efficient
utilization of human effort.
The management of Sakaar Foundation does not close its ears to any constructive
suggestions made by the volunteers. There is an equal division of work and
responsibility between volunteers and management. All the day long, the management
work side by side with the volunteers helping, encouraging and smoothing the way for
them.
Identify and explain one principle each of Scientific Management' and 'General
Management adopted by Sakaar Foundation. (3)

Q14. 'Bhasin' limited was engaged in the business of food processing and selling its
products under a popular brand. 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 in disciplined. The spirit of teamwork, which had
characterised 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 the
principles of management that were violated by the company.(5)

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Q15. Devesh works as head (Finance) in a electronics company. Although over the years,
with experience he has been able to build upon his managerial skills in terms of
creativity, imagination and initiative, but still he feels that the knowledge of certain
underlying theories and principles of management is a must for any aspiring manager.
This is primarily due to the fact that these principles are evolved through observations
and tested through experimentation and help the managers in taking scientific
decisions. Thus, a manager requires both the knowledge and certain skills to apply
the related knowledge in the light of given situations to be successful in his work.
In context of the above case:
(a) Identify and explain the two aspects of nature of management which Devesh thinks
makes a manager successful.
(b) Also, explain the specific feature of one of the aspects of nature of management as
identified in part (a) of the question which distinguishes it from other physical sciences
like biology, physics and chemistry etc. (3)