Sahodayaterm2bstqpforprint-Set2 11258

BANGALORE SAHODAYA SCHOOLS COMPLEX
ASSOCIATION (BSSCA)
PRE-BOARD EXAMINATION –TERM -2 (2021-2022)
Date: 08-04-2022 Max. Marks: 40

Subject: BUSINESS STUDIES (SET 2) Time: 2 hours
General Instructions:
1. This is a Subjective Question Paper containing 12 questions
2. This paper contains 4 questions of 2 marks each, 4 questions of 3 marks
each and 4 questions of 5 marks each
3. 2 marks questions are Short Answer Type Questions and are to be answered in 30-50
words.
4. 3 marks questions are Short Answer Type Questions and are to be answered in 50-80
words.
5. 5 marks questions are Long Answer Type Questions and are to be answered
in 80-120 words. This question paper contains Case/Source Based Questions.
SL QUESTIONS MARKS
N
O
1 Name and explain with example, the concept which suggests that only 2
significant deviations which go beyond the permissible limit should
be brought to the notice of management?
2 What should be done while ‘taking corrective action’ in the process of 2
controlling when especially in the important areas of deviations go
beyond the acceptable range?
3 TASTY FOOD Limited is a company engaged in production of 2
packaged juice since 2010. Over this period, a large number of
competitors have entered the market and are putting a tough challenge
to TASTY FOOD limited. To face this challenge and to increase its
market share the company has decided to replace the old machinery
with an estimated cost of rupees 100 crore. To raise finance, the
company decided to issue 9% debentures. The Finance Department of a
company has estimated the cost of issuing 9 % debenture will be 10
lakh. The company wants to meet this cost.
a. Name this cost and Explain the instrument that company may
issue for this purpose
1
b. In which type of Financial Market is, the instrument explained
in (a) above traded? Also explain how safe the instruments are
in this market
4 Mr. Sandeep want to purchase a microwave oven. He checked the 2

various microwave oven available online and compared the prices so
that an intelligent and wise choice could be made. Then he went to
nearby market to buy a microwave oven. Being an informed consumer
he looked for the correct standardization mark the shopkeeper showed
her different microwave oven but was quoting higher price than the
price he had checked online. After negotiating with the shopkeeper, he
was able to bring the price down. As a responsible consumer he asked
for cash memo against the amount paid for the product and took the
microwave oven home. On opening the package, he found an
instruction booklet which he read carefully. Then he followed all
instructions step by step and made tasty food for his family.
a. State the consumer responsibilities which have been discharged
by Mr. Sandeep besides asking for cash memo?
b. Explain the two right being discussed in the above paragraph
5 Prime Global Limited is a MNC spread across many countries. 3
Company received following information about human resource from
two of these countries.
In the first country, business of the company is far less than expected.
That is why the number of employees there is much more than is
necessary. But the company has also learnt that the state of slowdown in
business will stay for a short period only
In the second country , in some departments of the company number of
employees is more than required whereas in some other departments the
same post are lying vacant.
Advise the HR manager of the company as to what method of
recruitment he should follow in both the countries and why?
6 Read the text given below and answer the question (a-c) based on it. 3
The top-level management of BSA CYCLES Private Limited decided to

implement a new Accounting system in the company. The management
called a meeting of all the concerned employees in order to escape the
apprehension of protest against their decisions. In the meeting a detailed
account of the objective and benefit of the new accounting system was
given. Not only this, even all the workers of the accounts department
2
were are also given the necessary training. In this way a good attempt
was made to modernize the accounts department.
In the meeting it was also made clear that the employee who succeed in
learning the new accounting system at the earliest and helped his
colleagues in implementing it would soon be given promotion.
The chairman of accounts department was a person of such a nature that

he wanted his subordinate to do exactly what he told them. He believed
in one way communication.
a. The step taken by the company to escape apprehension of

protest against the new Accounting system is an important point
of Importance of directing. Identify it.
b. In the meeting of the employees a word was said about
promotion on account of earliest learning of new accounting
system and help in the colleagues in implementing it. Identify
this non-monetary incentive
c. Which leadership style is indicated by the belief of the chairman
of accounts department in one way communication?
OR
“Managerial functions cannot be carried out without an efficient system

of communication” do you agree with this statement ? give three
reasons to support your answer .
7 SMT LTD , a leading hospital group wants to raise fund of Rs 3

40,00,000 for its new project. The management is considering the
following mix to raise the amount.
Capital Case 1 Case2 Case3

structure
Equity 40,00,000 30,00,000 10,00,000
Debt 0 10,00,000 30,00,000
Following are the other details
Interest rate on Debt 9%
Face value of equity shares Rs 100
3
Tax rate 30%
Earnings before interest and tax Rs 8,00,000
a. Under which of the three alternatives will the company be able

to take advantage of trading on equity?
b. Does earnings per share rise with increase in debt?
8 What are the various ways in which the objective of consumer 3

protection can be achieved?
9 Wilson, the Marketing Head, Vijayan , Assistant Manager and Juliet 5

Human Resource Manager(HRM) of WVJ Enterprises Limited decided
to leave the company.
The Chief Executive officer of the company called Juliet , HRM and
requested her to fill up the vacancies before leaving the organization.
Informing that her subordinate MS Alka Pandit was very competent and
trustworthy. Juliet suggested that if she could be moved up in the
hierarchy, she would do the needful. Chief Executive Officer agreed
for the same. Alka Pandit contacted Global recruiters who advertise for
the post of Marketing Head. They were able to recruit a suitable
candidate for the company
Vijayans vacancy was filled up by the screening the database of

unsolicited applications lying on the office
a. Name the internal/external sources of recruitment used by WVJ

Limited to fill up the above stated vacancies
b. Also state any one merit of each of the above and identified
sources of recruitment
OR
Explain various steps in the Process of Selection
10 Karma joined as a shop level manager in production department of a 5

textile company in the year 2005. Because of his good work he became
the Deputy Production Manager of the company in the year 2010.He
had status and Prestige and was well respected by all in the company.
on 1st March 2019 he was promoted as the General Manager of the
company. Karma was very happy on his promotion as now he had
become what he was capable of becoming. As a good manager Karma
decided to motivate his subordinates, after understanding the Need
Hierarchy Theory which was based on various assumptions. He realized
that people's behavior is based on their need and the manager can
influence the behavior of his employees by satisfying their needs.
4
a. One of the assumptions of Need Hierarchy Theory is stated in
the above paragraph, state the other three assumptions of the
theory.
b. State the needs of Karma which are been satisfied through
promotion
11 India’s largest domestic investor LIC of India has once again come to 5
governments rescue by subscribing 70% of Hindustan Aeronautics Rs
4200 crore initial public offering.
a. Which market is being reflected in the above case, list any

feature of this?
b. State which method of floatation in the above identified market
is being highlighted in the case.
c. Explain any other two methods of floatation.
12 Arjun, the Managing Director of DLW Limited and Rajeshwari the 5

finance manager were discussing about the avenues of investing the
ideal fund of the company. Arjun was of the opinion that money should
be invested in the capital market where as Rajeshwari being more
conservative, feels that it should be better if the investment was made in
money market.
Since the economy was buoyant, the Managing Director convinced

Rajeshwari that they should take advantage of it and invest in the
capital market to get good returns. Ultimately it was decided to invest
idle fund in the capital market .
a. What kind of instrument should the company buy?

b. Why is the capital market expected to give a better return in a
buoyant economy? state the reason.
c. Why and how safe are the securities in this market as compared
to money market
OR
Explain the trading procedure in a stock market

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BANGALORE SAHODAYA SCHOOLS COMPLEX

PRE-BOARD EXAMINATION –TERM -2 (2021-2022)

Date: 08-04-2022 Max. Marks: 40

4 Mr. Sandeep want to purchase a microwave oven. He checked the 2

The top-level management of BSA CYCLES Private Limited decided to

The chairman of accounts department was a person of such a nature that

a. The step taken by the company to escape apprehension of

“Managerial functions cannot be carried out without an efficient system

7 SMT LTD , a leading hospital group wants to raise fund of Rs 3

Capital Case 1 Case2 Case3

Equity 40,00,000 30,00,000 10,00,000

Debt 0 10,00,000 30,00,000

Following are the other details

Interest rate on Debt 9%

Face value of equity shares Rs 100

Earnings before interest and tax Rs 8,00,000

a. Under which of the three alternatives will the company be able

8 What are the various ways in which the objective of consumer 3

9 Wilson, the Marketing Head, Vijayan , Assistant Manager and Juliet 5

Vijayans vacancy was filled up by the screening the database of

a. Name the internal/external sources of recruitment used by WVJ

10 Karma joined as a shop level manager in production department of a 5

a. Which market is being reflected in the above case, list any

12 Arjun, the Managing Director of DLW Limited and Rajeshwari the 5

Since the economy was buoyant, the Managing Director convinced

a. What kind of instrument should the company buy?

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