OLIVE INTERNATIONAL SCHOOL, QATAR

Academic Year 2024– 2025

PRE-BOARD REVISION SERIES - I
BUSINESS STUDIES (054)
Grade : 12
Date : 24.10.2024 Submission Date : 03/11/2024
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. Attempt all parts of the questions together.

1 What is the main significance of management? 1

A) To increase organizational complexity
B) To reduce productivity
C) To achieve organizational goals efficiently
D) To create chaos in the workplace
2 Management involves the efficient utilization of: 1
A) Unlimited resources
B) Unlimited time
C) Limited resources
D) Unlimited technology
3 Which management principle emphasizes that employees in an organization shouldhave one 1
clear supervisor to report to?
A) Division of Labor
B) Unity of Command
C) Hierarchy of Authority
D) Span of Control
4 Statement I: Business environment refers to the internal factors that affect an 1
organization.
Statement II: The external factors, including economic, social, and technologicalfactors, also
significantly impact a business.
A) Both statements are true.
B) Statement I is true, but Statement II is false.
C) Statement I is false, but Statement II is true.
D) Both statements are false.
Read the following statement (Question No. 5 & 6) - Statement I and Statement II. choose the
correct alternative answer:-
5 Statement I: The economic environment includes factors such as inflation, exchange rates, 1
and economic growth.
Statement II: The social environment encompasses factors related to anorganization's
financial health and performance.
A) Both statements are true.
B) Statement I is true, but Statement II is false.
C) Statement I is false, but Statement II is true.
D) Both statements are false.
6 Statement I: The business environment is static and unchanging. 1
Statement II: The business environment is dynamic and subject to continuous change.
A) Both statements are true.
B) Statement I is true, but Statement II is false.
C) Statement I is false, but Statement II is true.
D) Both statements are false.

7 Which of the following is an external factor in the business environment? 1

A) Employee skills and expertise
B) Company culture
C) Competitive pricing strategy
D) Government policies
8 Which organizing principle involves grouping similar tasks and activities togetherwithin an 1
organization?
A) Centralization
B) Division of labor(work)
C) Decentralization
D) Hierarchy of authority
9 Which leadership style involves making decisions without consulting team 1
members?
A) Democratic leadership
B) Autocratic leadership
C) Transformational leadership
D) Laissez-faire leadership
10 Controlling involves taking corrective action when actual performance deviates fromthe 1
planned or desired .
A) Procedures
B) Guidelines
C) Outcome
D) Process
11 In the controlling process, the first step is to establish against whichactual 1
performance can be compared.
A) Budgets
B) Goals
C) Rules
D) Reporting structures
12 What is the primary goal of financial management in a business? 1
A) Maximizing employee satisfaction
B) Minimizing marketing expenses
 C) Minimizing tax liabilities
D) Maximizing profits and shareholders wealth
13 Which financial market primarily deals with newly issued securities? 1
A) Primary market
B) Secondary market
C) Money market
D) Bond market
14 In the context of the financial market, what does the term "liquidity" refer to? 1
A) The ease with which an asset can be bought or sold without significantly affectingits
price
B) The level of government debt
C) The maturity period of a financial instrument
D) The stock market index
15 Which financial market deals with short-term debt instruments like Treasury billsand 1
commercial paper?
A) Primary market
B) Stock market
C) Money market
D) Secondary market
16 Match the following marketing philosophies given in Column I with their respective 1
meaning given in Column II
A) P – (II), Q – (III), R – (I), S – (IV) B) P – (I), Q – (II), R – (IV), S – (III)
C) P – (III), Q – (I), R – (II), S – (IV) D) P – (IV), Q – (III), R – (I), S – (II)
Column I Column II
P The Product Concept I It emphasises on increasing the profit
through increased sales volumes by
adopting aggressive selling techniques.
Q The Production II It emphasises on quality performance
Concept and features of product and thus profit
maximization through product
improvement.
R The Selling Concept III It emphasises on profit maximisation
through volume of production, thereby
reducing the cost of production.
S The Marketig Concept IV It emphasises on profit maximisation
through customer satisfaction, i.e.
identifying the needs of its present and
prospective buyers and satisfying them
in an effective manner.

Read the following statement (Question No. 17 & 18) - Assertion (A) and Reason (R). choose the
correct alternative from those given for your answer:-
A) Both A and R are true, and R is the correct explanation of A.
B) Both A and R are true, and R is not the correct explanation of A.
C) A is true, but R is false.
D) A is false, but R is true.
17 Assertion (A): Relationship marketing focuses on building long-term, mutually 1
beneficial relationships with customers.
Reason (R): The primary goal of relationship marketing is to maximize short-term
profits.
18 Assertion (A): The product life cycle consists of stages such as introduction, growth, 1
maturity, and decline.
Reason (R): These stages help businesses understand the evolution of a product in
the market.
19 The term marketing refers to . 1
A) Advertising, Sales Promotion, Publicity and Public Relational activities
B) A new product needs ideas, Developments, concepts and improvements.
C) Sales Planning, Strategy and Implementation
D) A philosophy that stresses customer value and satisfaction.
20 Today, marketing must be understood in a new sense that can be characterized 1
as .
A) Get there first with the most.
B) Management of youth demand.
C) Satisfying customer needs.
D) Telling and selling.
21 Explain the concept of "Goal-Oriented" in the nature of management. Provide three 3
examples of how this nature is applied in real-world organizations.
22 J K Ltd. Company is a well-established manufacturing company that has recently 3
expanded its operations. Due to the expansion, the company needs to hire several
new employees with specialized skills that are not readily available internally. The
HR department is responsible for external recruitment.
1. Identify and explain three advantages of external recruitment that would benefit
J K Ltd. Company during its expansion.
OR
XYZ Corporation, a growing tech company, has several experienced and skilled
employees who have been with the company for several years. The company is
looking to fill a new management position as part of its expansion. The HR
department is considering internal recruitment for this role.
1. Identify and explain three advantages of internal recruitment that would benefit
XYZ Corporation in filling the new management position.
23 “Planning and controlling are both backward looking as well as forward looking 3
functions.” Explain it.
OR
"Planning is prescriptive whereas controlling is evaluative". How
24 “Nature of money market can be well explained with the help of its features”. State 3
any three such features of money market.
25 Explain briefly “transfers” and “promotions” as internal sources of recruitment. 4
26 Explain grapevine communication. Also mention their types. 4
OR
State any four measures to overcome the communication barriers.
27 Mr. Pawan Kumar, the CEO of an E-Commerce start up, which was facing the 4
problem of huge employee turnover, decided to hold a meeting with the managers
 to discuss the issue. While addressing the managers in the meeting, he advised them to
take certain measures which focus on psychological, social and emotional factors, in order
to motivate employees. Explain any two such measures discussed by him, when he
suggested that job should be made interesting so that the job itself becomes a source of
motivation, employees should be congratulated for good performance, also, stability
regarding future income and work should be provided to
employees, in order to develop a positive attitude among the subordinates.
28 Explain the factors affecting the decision that determines the amount of profit 4
earned to be distributed and to be retained in the business.
29 “A business that doesn’t grow dies”, says Mr. Shah, the owner of Shah Marble Ltd. with 4
glorious 36 months of its grand success having a capital base of RS.80 crores. 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 RS.120 crores. 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 issueof 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 from a
financial institution.
1. Identify and explain the concept of Financial Management as advised by Mr. Seth
in the above situation.
2. State the four factors affecting the concept as identified in part (1) above
which have been discussed between Mr. Shah and Mr. Seth.

30 Adesh had some problem walking on the road. He purchased a pair of shoes with high 4
heels. After some time of using these shoes his pain increased as he did not know that
there were medically recommended shoes available in the market for thisproblem. .After
a few days of giving himself rest he approached a shop where the medically
recommended shoes were sold. He was amazed to learn that the company making the
shoes was holding workshops at different places in order to make the people suffering
with such problem aware of an available option.
1. Which consumer responsibility was not fulfilled by Adesh?
2. Which right has been helped protected by the company selling the medically
recommended shoes?
OR
Rajiv bought an electric geyser. One day while taking bath he felt an electric shock. He
quickly called the company and asked the concerned person to replace the geyser or fix
the problem. There was no response from the side of the company. Thegeyser was still in
the warranty period. Later from other neutral sources lie came to learn that many other
people have also felt the same problem and it is because the product is made up of
substandard components.
In the above case identify the consumer rights violated.
31 ‘Aapka Vidyalaya’ believes in the holistic development of students and encourages 6
team building through a mix of curricular, co-curricular and sports activities. On its
Founder’s Day, a stage performance had to be put up. A committee of ten prefects
was constituted to plan different aspects of the function. They all decided to use
recycled paper for decoration. There was a spirit of unity and harmony and all the
members supported each other. With mutual trust and a sense of belonging, the
programme was systematically planned and executed. Kartik, one of the prefects,
realised that the group had unknowingly applied one of the principles of
management while planning and executing the programme. He was so inspired by
the success of this function that he asked his father to apply the same principle in
his business. His father replied that he was already using this principle.
1. Identify the principle of management applied for the success of the
programme.
2. State any two features of management highlighted in the above paragraph.
3. Identify any two values which ‘Aapka Vidyalaya’ communicated to society.
32 In spite of best efforts of managers, sometimes planning fails to achieve desired 6
results due to its drawbacks. Explain any three limitation of planning.
OR
Describe the last three steps of Planning.
33 Why is delegation considered essential for effective organising? 6
OR
Decentralisation is an optional policy. Explain why an organisation would choose to
be decentralised.
34 Since childhood Niru and Janak had been watching their grandmother procuring 6
wheat from the market. washing it well, drying it and getting it converted into atta.
They conducted a survey to collect data to identify whether there is demand for
readymade atta and realised that with the growing number of working women, it is
the need of the hour to manufacture high quality atta. They named their product
'Srijan' and set up 'Srijan Atta Factory' at Jaunpur Village. To penetrate in the
market, they decided to keep the price low. For maintaining smooth flow of their
product into the market and avoiding delays in delivery, it was decided to store
wheat at SKM Services which had scientific processes and logistics facilitating quick
delivery. They also set up an online complaint portal to take care of consumer
grievances. .By quoting the lines from the above paragraph, state five marketing
functions undertaken by Niru and Janak for successful marketing of 'Srijan' atta.