Sadhana - Business Studies Xii Sqps and Pqps 2024-25

NAVODAYA VIDYALAYA SAMITI
SHILLONG REGION
SAADHANA PROGRAM
2024-2025
PRACTICE PAPERS
for
CLASS -XII
BUSINESS STUDIES (054)
CLASS XII BUSINESS STUDIES SAMPLE QUESTION PAPERS AND PRACTICE QUESTION PAPERS 2024-25 1
FOREWARD
It gives me immense pleasure to introduce this practice paper book under Sadhana program, which has been
meticulously prepared by a team of experienced teachers under the able supervision of the Principals, with the
aim of enhancing students' performance in the upcoming CBSE Class X and Class XII examinations. As we
navigate through an era of academic challenges and evolving pedagogical approaches, it becomes imperative
that we equip our students with the right tools and resources to excel in their exams.
This book is a culmination of hard work and dedication by teachers who have vast experience in guiding
students through the intricacies of the CBSE curriculum. The practice papers included here are designed to
provide a comprehensive revision of key concepts and an opportunity for students to familiarize themselves
with the format and style of questions they are likely to encounter in the board examinations.
By engaging with these practice papers, students will not only gain confidence in their ability to tackle exam
questions but will also develop critical thinking and time-management skills, which are essential for success.
The papers cover a wide range of topics, ensuring a holistic preparation strategy for all subjects. The feedback
and analysis sections that follow each paper will also serve as an invaluable resource for identifying areas of
improvement.
As a Deputy Commissioner of NVS Shillong, I encourage all students to make the most of this resource, taking
a disciplined and focused approach to their studies. The efforts put forth by the teachers in creating this book
reflect a shared commitment to the academic growth of every student, and I am confident that with consistent
practice and dedication, our students will emerge victorious in their forthcoming examinations.
I extend my best wishes to all students and teachers, and I hope that this practice paper book proves to be a
stepping stone towards their success.
Aditya Prakash Singh

Deputy Commissioner
Navodaya Vidyalaya Samiti,
Shillong
COMPOSITION OF THE COMMITTEE OF RESOURCE PERSONS
S.No. NAME OF THE RESOURCE DESIGNATION & ROLE

PERSON VIDYALAYA
1 UTTAM DEY PGT COMMERCE Member

JNV Kamrup
2 Dr SEW KUMAR PRASAD PGT COMMERCE Member

JNV Morigaon
3 SHIBEN KARMAKAR PGT COMMERCE Member

JNV Soreng
4 LAITONJAM ROMOLA PGT COMMERCE Member

JNV Phek
5 CHARANGA ROSE MARING PGT COMMERCE Member

JNV Imphal West
6 ANISH P PRINCIPAL Coordinator

JNV SERCHHIP
INDEX
S.No. PAGE NUMBER
WHOLE SYLLABUS – SAMPLE QUESTION PAPERS

(SQP)
1 SAMPLE QUESTION PAPER -1 5 – 11
ANSWER KEY / SOLUTION (SAMPLE QUESTION
PAPERS)
6 ANSWER KEY (SQP) – 1 43 – 51
10 ANSWER KEY (SQP) – 5 66 - 73
TOPIC WISE PRACTICE QUESTION PAPERS (PQP)
11 CHAPTER 1, 2 & 3 74 – 79
12 CHAPTER 4 & 5 80 – 85
13 CHAPTER 6, 7 & 8 86 – 93
14 CHAPTER 9 & 10 94 – 98
15 CHAPTER 11 & 12 99 – 104
ANSWER KEY / SOLUTION (PRACTICE QUESTION
PAPERS)
16 ANSWER KEY (PQP) – 1 105 – 110
17 ANSWER KEY (PQP) – 2 111 – 114
18 ANSWER KEY (PQP) – 3 115 – 120
19 ANSWER KEY (PQP) – 4 121 – 125
20 ANSWER KEY (PQP) – 5 126 – 129
SAMPLE QUESTION PAPER – 1
SAMPLE QUESTION PAPER-1
BUSINESS STUDIES
(Code No. 054)
Class XII (2024-25)
Marks: 80 Duration: 03 hrs.

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.
7. Attempt all parts of the questions together.
01. --------------- is cheaper but is riskier for a business

(a) Debt
(b) Equity
(c) Reserves and surplus
(d) All of these 01
02. Karam Limited is offering a travel package for 15 destinations worldwide with free insurance on the
bookings for the month of December 2023. Identify the feature of marketing being described in the above
lines.
(a) Needs and wants
(b) Creating a market offering
(c) Customer value
(d) Exchange mechanism 01
03. ‘Twinkle Stars’ is a well-known resort for organising parties, especially for children. However, in past 6
months its popularity has reduced considerably as a new resort with better ambience and facilities has
opened within its vicinity. Name the related feature of business environment which has influenced the
business of ‘Twinkle Stars’ adversely.
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Uncertainty 01
04. In order to get feedback about its new product launch, Tyaggi Limited conducted an online survey
through a short questionnaire. Identify the marketing function being mentioned in the given line.
(a) Gathering and analysing market information
(b) Marketing planning
(c) Product designing and development
(d) Packaging and labelling 01
05. Identify the correct sequence of steps to be followed in the trading procedure at the Stock Exchange.
(a) Opening a trading account and Demat account, placing an order, Settlement of order, Execution of order
(b) Settlement of order, Opening a trading account and Demat account, Placing an order, Execution of order
(c) Opening a trading account and Demat account, placing an order, Execution of order, Settlement of order
(d) Placing an order, Opening a trading account and Demat account, Execution of order, Settlement of order
01
06. The picture given on the right side depicts one of the
following concept of management is absent. What
was that.
(a) Management
(b) Co-ordination
(c) Planning
(d) Directing
01
07. Asweon Ltd. wants to buy treasury bills for Rs.125,000. What is the maximum number of Treasury Bills
that this fund can purchase?
(a) 4
(b) 3
(c) 5
(d) 7 01
08. Which of the following statement is false

(a) Controlling is a goal-oriented function
(b) Controlling is a pervasive function
(c) Controlling is the last function of management
(d) Controlling only completes are cycle of management process and improves planning in the next cycle
01
09. What is the difference between marketing and selling: –
a) Marketing is a part of selling activities
b) Selling is a part of marketing activities.
c) Both marketing and selling are the same
d) None of the above 01
10. Read the following statements Assertion (A) and Reason (R)
Assertion (A): Coordination is a one-time function of the top management
Reason (R): Coordination begins at the planning stage and continues till controlling
(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 and Reason (R) is false
(d) Assertion (A) is false and Reason (R) is true. 01
11. Marketing activities do not include which of the following activities: –

a) Designing,
b) Manufacturing,
c) Procuring raw material
d) Collection from debtors 01
12. Today almost every business organisation has computer monitoring as a part of their control system.
Which point of importance of controlling function of management is highlighted above.
(a) Accomplishing organisational goals
(b) Ensuring order and discipline
(c) Making efficient use of resource
(d) Judging accuracy of standards. 01
13. For the following statements, choose the correct option

Statement I: Informal organisation emerges from within the formal organisation when people interact
beyond their officially defined roles
Statement II: Informal organisation has no written rules, is fluid in form and scope and does not have fixed
lines of communication.
(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 01
14. Electric vehicles with zero tailpipe emissions are emerging as a good alternative to problems like climate
change, surging pollution leading to ill health, crude import bill, and energy security. Identify the related
dimensions of a business environment.
(a) Economic dimension, Legal dimension, and Social dimension
(b) Social dimension, Political dimension, and Economic dimension
(c) Economic dimension, Technological dimension, and Social dimension
(d) Social dimension, Political dimension, and Legal dimension 01
15. “Grouping similar nature jobs into larger units called departments” is the step in the process of one of
the functions of management. Identify the function of management.
(a) Planning
(b) Organising
(c) Directing
(d) Staffing 01
16. For the following statements, choose the correct option

Statement I: The stock exchange provides scope for speculation
Statement II: The stock exchange enhances liquidity of shares, i.e., it indirectly promotes capital formation
and contributes to economic growth.
(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 01
17. The growing awareness about healthcare has led to an increase in the demand for healthcare products
and services in the country. Identify the feature of business environment being described in the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
(d) Interrelatedness 01
18. Match the following and choose the correct alternative

(i) A name, term, sign, symbol, design or some combination of (A) Trade mark
them, used to identify the products of one seller and to
differentiate them from those of the competitors.
(ii) The verbal component of a brand (B) Brand mark
(iii) The part of a brand which can be recognized but which is not (C) Brand
utterable
(iv) A bread or part of a brand that is given legal protection (D) Brand name
(a) (i) – (C), (ii) – (D), (iii) – (B), (iv) – (A)

(b) (i) – (A), (ii) – (B), (iii) – (C), (iv) – (D)
(c) (i) – (D), (ii) – (B), (iii) – (C), (iv) – (A)
(d) (i) – (B), (ii) – (A), (iii) – (D), (iv) – (C) 01
19. Name the process of working with and through other to effectively achieve organisational objectives by
efficiently using limited resources in a changing environment.
(a) Management
(b) Planning
(c) Organising
(d) Controlling 01
20. Infosys decides to open schools for lesser privileged children is an example of -------
(a) Economic
(b) Political
(c) Legal
(d) Social 01
21.List any three functions performed by the top-level management. 03
22.'An effort to control everything may end up in controlling nothing'. Explain.
OR
Vinber Ltd. set up a manufacturing unit at Bhiwadi at Himachal Pradesh to manufacture electric geysers and
supply them to dealers all over the country. Their production target was 500 geysers per week. It was decided
by the management that variation in production up to 10 units would be acceptable. At the end of the first
week, the production was 450 geysers. The next week, production increased to 470 geysers. A week later,
production was 460 geysers. On investigations, it was found out that fluctuation in production was due to
irregular supply of electricity.
(i) The above para discusses some of the steps of one of the functions of management. Explain the steps.
(ii) Also, state the step(s) not discussed in the above para. 03
23. State the steps in the selection procedure, after the employment interview and before the job offer.
03
24.Recent years have seen a high rise in the number of fraudulent fund raising operations by different
companies. They are making their way into the poor and middle-class people by luring them with offers of
high interest rates and returns. People are falling prey to such companies and their schemes. They face such
risks that extend from loss of personal savings to loss of their jewellery and homes. Such frauds also have a
considerable impact on economies and markets by reducing the consumer's trust and confidence in legitimate
businesses. Such companies are witty and quick to alter their modus operandi to reduce the risks of law
enforcement detection and investigation. Identify and state objective of the organization which has been set
up to regulate such companies and their offers.
OR
Briefly explain two money market instruments available for private companies. 03
25. Explain about the qualities of a good leader
OR
Suggest any four methods to overcome barriers to communication. 04
26. Which source of recruitment is needed to bring new blood in the organisation? Explain its any two merits
and two limitations.
OR
Write a short note on any four types of employment tests. 04
27.Consumer rights allow customers to have the required information about goods and services while
purchasing them. Explain the rights of consumer? 04
28.What do you mean by financing decision. State and explain any four factors which affects financing
decision. 04
29.Explain the concept of Democratic leadership and state its features. 04
30.Vedansh Limited has a share capital of Rs. 10,00,000 divided into shares of Rs. 100. For expansion
company requires additional funds of Rs. 5,00,000. The management is considering the following alternatives
for raising funds.
Alternative 1: Issue of 5000 equity shares of Rs 100 each
Alternative 2: Issue of 10% Debentures of Rs. 5,00,000. The company’s present earnings before interest and
tax (EBIT) is Rs. 4,00,000 p.a. Assuming that the rate of return of investment remains the same after expansion,
which alternative should be used by the company in order to minimize the returns to the equity shareholders.
The tax rate is 50%.
Show your working. 04
31. (1) Explain any two principles of Fayol from the following:
a) Stability of tenure of personnel
b) Unity of command
c) Subordination of individual interest to common good
2) Differentiate between method study and motion study on any three basis.
OR
1) Explain any two significances of principles of management from the following:

a) Providing managers with useful insights into reality
b) Optimum utilisation of resources and effective administration
c) Scientific decisions
2) Differentiate between contributions made by F.W.Taylor and Henry Fayol on any three basis.
(3+3 =6)
32.Relo Ltd. is a laptop manufacturing company; The company decides to enter into refrigerator
manufacturing industry. The company has a committed top management. It knows that there are various
challenges in the market where its decisions regarding the new industry might fail. Still the top management
doesn't want to waste a lot of resources on its plans. It knows that sometimes plans take more time in making
than getting implemented. However, the company wants to proceed with a positive approach. It has decided
to all the aspects of its competitors, to set all its objectives and to allocate the required resources. The company
did well in its previous business. At that time, they took planning very seriously as they knew everything the
company would do had to be based on concrete plans. The company will start its operations from next month.
(i) Identify and explain the function of management that has been discussed in the above case?
A (ii) Identify and explain the limitations of the function identified in above (i).
OR
Explain any six points highlighting the importance of planning. 06
33.Tarun purchased a bottle of tomato sauce from a local grocery shop. The information provided on the bottle
was not clear. She fell sick on consuming it. She filed a case in the District Forum under Consumer Protection
Act and got the relief.
(i) Identify the important aspect neglected by the marketer in the above case
(ii) Explain briefly the functions of the aspect identified in (i) above. 06
34. Distinguish between formal and informal organisation 06
SAMPLE QUESTION PAPER-2
BUSINESS STUDIES
(Code No. 054)
Class XII (2024-25)

Q.1. Which level of management formulates overall organizational goals and strategies for their
achievement.
(a)Middle Level
(b) Operational Level
(c) Top Level
(d) All of the above
Q.2. Identify the reason which makes management important in the light of the fact that it is generally seen
that individuals in organisations resist change, as a change often means moving from a familiar, secure
environment into a newer and a more challenging one.
(a)Management helps in achieving groups goals.
(b) Management creates a dynamic organisations.
(c) Management increases efficiency.
(d) Management helps in the development of the society.
Q.3.Recently the Indian Government encouraged foreign companies to invest in some sectors of retailing in
the country.
Which dimension of business environment is mentioned in the given statement?
(a) Political
(b) Legal
(c)Economic
(d) Social
Q.4. With the introduction of mineral water bottles in India, Bisleri was able to capture the big market share
in India. Which importance of business environment is highlighted in the above case?
(a)Helps to tap resources
(b)Helps in policy making
(c)Improve Performance
(d)Helps to identify opportunity and getting first mover advantage
Q.5. Which of the following is the factor of the social environment of business?
(a) Customs
(b) Standard of education
(c) Standard of living
Q.6. Business environment includes both ‘specific and general force’. Which one of the following is
included in specific forces.
(a) Social
(b) Economical
(c) Customers
(d) Legal
Q.7.Which principle prevents dual subordination?

(a) Unity of Command
(b) Unity of Direction
(c) Order
(d) Equity
Q.8. Ram was given a task by his superior to prepare a plan in 15 days. He asked two of his subordinates to
work upon this task, one of the subordinates met with an accident and could not complete his work. Who is
answerable for this task?
(a)Ram is accountable.
(b)Ram’s superior is accountable.
(c) Ram’s subordinate is accountable.
(d) None of them is accountable
Q.9 Who reports to whom is decided in the following step of organizing process.
(a)Identifying the activities
(b)(b) Grouping the activities
(c) Assignment of duties
(d) Establishing reporting relationship
Q.10. The production Manager of Tesla Ltd., finds out that the cost of raw material per unit is increased by
₹8 and there is also an increase in the courier charges by ₹20. The Production Manager decided to focus
attention on the increase in the cost of raw material. The manager followed -
(a) Critical Point Control
(b) Management by exception
(c) Organizing
(d) None of these
Q.11.Arrange the steps involved in the process of controlling in correct sequence:

i. Comparison of actual performance with standards
ii. Setting performance standards
iii. Taking corrective action
iv. Measurement of actual performance
v. Analyzing deviations
(a) (ii), (iv), (i), (v), (iii)
(b) (iii), (i), (iv), (ii), (v)
(c)(ii), (i), (v), (iii), (iv)
(d) (ii), (v), (iv), (iii), (i)
Q.12. Match the various terms of Financial Markets Column I with their respective Statements in Column
II.
Column I Column II
(a)Financial market (i) It is also known as Stock market.
(b)Primary market (ii) It is a market for creation and
exchange of financial assets.
(c)Secondary market iii) It is also known as new issue market.
(a) (ii) ,(iii), (i)
(b) (i), (iii), (ii)
(c) (iii), (ii), (i)
(d) (i), (ii), (iii)
Q.13.In which year the Securities and Exchange Board of India (SEBI) was given a statutory status?
(a) 1988
(b) 1991
(c) 1992
(d) 1994
Q.14. For the following two statement choose the correct option:
Statement I: De-mat Account is the common name of Beneficiary Owner Account.
Statement II: PAN Number is mandatory to be provided by the investor to the broke
while filling a client registration form.
(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.
Q .15. Which of the following is the Protective function of SEBI

(a)Training of intermediaries of Security market.
(b)Registration of Broker and sub-brokers.
(c)Promotion of fair-trade practices
(d)Conducting research and publishing information useful to all market participants
Q.16.The complaints filed in the State Commission are where the value of goods and services, along
with the compensation:
(a) Exceeds ₹ 20 lakhs but does not exceed ₹ 1 crore.
(b) Exceeds ₹ 1 crore but does not exceed ₹ 10 crore.
(c) Less than ₹ 20 lakhs.
(d) Exceeds ₹ 10 lakhs but does not exceed ₹ 20 lakhs.
Q.17. Which of the following is incorrect about sales promotion?

(a)It offers short term incentives to the consumers.
(b)It is useful in launching new products.
(c)It is a personal form of promotion.
(b)Rebate, Discount, sampling etc. are parts of sales promotion.
Q.18.Crackers Ltd., a fire cracker manufacturing company launched some new products on eve of Diwali
which attracted many buyers. To meet the increased demand, the company employed children from nearby
villages. Although the product was in great demand, appropriate safety warnings for use were not mentioned
on the packets that led to many accidents.
Identify the important product related decision that was not taken into consideration by the company.
(a)Labeling
(b)Packaging
(c)Branding
(d)Advertising
Q .19. Identify marketing management philosophy which focuses on paying attention to the social ethical
and ecological aspect of marketing?
(a) Product concept
(b) Selling concept
(c) Marketing concept
(d) societal marketing concept
Q .20. Marketers fix higher prices for their products when demand for their products is………
(a) Inelastic.
(b) Elastic
(c) Perfectly elastic
Q .21 Identify the level of management whose basic task is to integrate diverse element and coordinate the
activities of different departments according to the overall objectives of the organization. State any two
functions of the level of management identified. 3
Q .22 Based on "Performance Appraisal Report (2023)", the HR manager of 'Gamma Ltd. adopted the
following ways of training for improving the quality of output and providing more job satisfaction to the
employees:
(i) Mr. Ganesh was in the company so that he could practice the theoretical
knowledge acquired by him from his college.
(ii) Mr. Rahul was provided a dummy model of machinery to do practice on it.
(iii) Mr. Shekhar was asked to work with an expert for specific period of time so that he learns
by observation.
Identify the technique of training discussed in above cases (i, ii, iii). 3.
Q 23. “Controlling is an indispensable function of management. Without controlling the best of plans can go
away”. Do you agree? Explain any two reasons in support of your answer.
OR
“It is generally believed that measurement of performance should be done after the tasks is completed.”
Identify and explain the step in the process of the function of management being discussed above and the
step followed by the same in the process. 3
Q .24.State any three protective functions performed by securities and exchange board of India (SEBI).
OR
State any three functions performed by the Stock Exchange.
Q .25.“External sources of recruitment are considered better than internal sources”. Give any four reasons
in support of this statement. 4
Q .26. Mr. Shubhendu Bose is the owner of 'Bikmac Enterprises' carrying on the business of manufacturing
Various kinds of biscuits. There was a lot of discontentment in the organisation and the targets were not
being met.
He asked his son, Naval, who had recently completed his MBA, to find out the reason. Naval found that all
decision making of the enterprise were in the hands of his father. His father didn't believe in his employees.
As a result, both the employer and the employees were not able to understand each other’s messages in the
same sense. Thus, the employees were not happy and targets were not met.
a) Identify any two communication barriers because of which Bikmac Enterprises was not able to
achieve its target.
(b) State one more barrier each of the types identified in (a) above. 4
Q .27. Describe any four non-monetary incentives. 4
OR
Explain:
a. Authoritative Style of Leadership
b. Laissez Faire Style of leadership
Q .28 Tata International Ltd. earned a net profit of ₹50 crores. Ankit, the finance manager of Tata
International Ltd. wants to decide how to appropriate these profits. Discuss any four factors which will help
him in taking -this decision. 4
OR
After completing a diploma course in Wedding Planning Sunidhi plans to start her own business under the
name 'Heart Beat.' She plans to hire a team of experts to give her clients a unique and unforgettable wedding
experience keeping in mind their preferences and budget. Since childhood she has been admiring her
grandfather’s financial skills, so she decides to visit in Mewar to seek his guidance and blessings. Her
grandfather tells her that
the success of business depends on how well finance is invested in assets and operations and how timely
and cheaply the finances are arranged, from outside or from within the business. He warns her that she
should always invest time in identifying different available
sources of finance and comparing them in terms of their costs and associated risks. Similarly,
the finance needs to be invested in a manner that the returns from the investment exceed the cost at which
procurement has taken place.
In context of the above case:
(a) Identify and explain the financial concept being discussed above which has a direct bearing on the
financial health of a business.
(b) Name any two financial statements which reflect the financial health of a business.
Briefly outline the key objective of the concept as identified in part (a) of the question.
Q .29 Smart Stationery Ltd.' wants to raise funds of ₹40,00,000 for its new project. The
management is considering the following mix of debt and equity to raise this amount:
Particulars Alternative I Alternative II Alternative III
Capital Structure:
Equity ₹40,00,000 ₹30,00,000 ₹10,00,000
Debt 0 ₹10,00,000 ₹30,00,000
Other details are as follows:
Interest rate on Debt = 9%
Face value of shares = ₹100 each
Tax Rate = 30%
Earning before Interest and Tax (EBIT) = ₹8, 00,000
a) Under which of the three alternatives will the company be able to take advantage of Trading on
Equity?
b) Does Earning Per Share always rise with increase in debt? 4
Q.30. Suman wanted to purchase a sandwich toaster. She checked about the various sandwich toasters
available online and compared the prices so that an intelligent and wise choice could be made. Then she
went to a nearby market to buy the sandwich toaster. Being an informed consumer, she looked for the correct
standardization mark. The shopkeeper showed her different toasters but was quoting a higher price than the
price she had checked online. After negotiating with the shopkeeper, she was able to bring the price down.
As a responsible consumer, she asked for a cash memo, against the amount paid for the product and took the
toaster home. On opening the package, she found an instruction booklet, which she read carefully. Then she
followed all instructions step-by-step and made nicely toasted paneer sandwiches for her family.
(a)State any two responsibilities, which have been discharged by Suman, besides asking for a cash
memo.
Explain the two rights being discussed in the above case 4
Q.31 Briefly explain any three of the following principles of management. 6

(i) Stability of tenure of personnel
(ii) Order
(iii) Espirit De Corps
(iv) Scalar chain
OR
Briefly explain any three of the following techniques of scientific management as given by F W Taylor.
(i) Science, not rule of thumb
(ii) Harmony, Not Discord
(iii) Cooperation, Not Individualism
(v) Development of workers to their greatest efficiency and prosperity
Q .32. 'Agile Ltd.' is a well-known automobile manufacturing company in India. The company plans to
increase the sale of its sedan cars by 20% in the next quarter. In order to achieve the desired target, the
marketing team of the company considers the impact of policy of the government towards diesel vehicles
and the level of competition in this segment of cars. They explore the various available options like offering
more discount to dealers and customers, providing more customer friendly finance options, lucky draws on
test drives, increasing advertising, offering more of free accessories on the purchase of the car, etc. A
thorough analysis of the various available options is done keeping in view the relative viability of each
option. The company decides to pursue the option of offering more discount to dealers and customers in
order to boost the sale of sedan cars. In order to implement the plan, they determine the various discount
packages and communicate the same to their product dealers. To make the prospective consumers aware
about the new available benefits, advertisements are made through various sources of print and electronic
media. The market analysts of the company keep a close watch on the revenue from the sedan cars to study
the effect of new initiatives by the company to promote its sales.
(a)Name the function of management described in the above paragraph.
(b) Identify and explain the various steps involved in process the function of management as identified in
part (a) by quoting lines from the paragraph. 6
OR
Arush joins as a sales manager of a company dealing in neurotherapy products. proficient in his work, he
knew that without good planning he will not be able to organise direct, control or perform any of the other
managerial functions efficiently and effectively. Only on the basis of sales forecasting, he would assist in
the preparation of the annual plans for its production and sales. Besides, he will have to prepare sales plans
regularly on weekly, monthly, quarterly and half yearly basis. While preparing the sales forecasts he
undertakes intellectual thinking involving foresight, visualization and issued judgement rather than wishful
thinking or guess work. Most importantly, all these planning activities will be meaningful only if they will
coincide with the purpose for which the business is being carried out.
In context of the above case, identify the various features of planning highlighted in the above paragraph
by quoting lines from it.
Q .33. Aman Chadha started 'Bulls Eye' a company for providing cyber security solutions to businesses. Its
objective is to prevent, detect and respond to cyber attacks and protect critical data. He was a hardworking
software engineer and an expert in cyber security. His reputation grew by leaps and bounds as he was not
only a person of integrity but also did his work with utmost honesty and sincerity. The business started
growing day by day.
He was delighted when he was offered a big project by the Ministry of Defense. While working on the
project, he found that the volume of work made it impractical for him to handle all the work by himself. He
decided to expand the team. The company maintained a close liaison with a local engineering college.
During a campus placement, Ishan and Vrinda were appointed to work for the new project.
He found the new employees capable, enthusiastic and trustworthy. Aman Chadha was thus, able to focus
on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not only this Aman
Chadha was also able to extend his area of operations. On the
other hand Ishan and Vrinda also got opportunities to develop and exercise initiative.
(i) Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in
focusing on objectives.
(ii) Also, state any four points of importance of the concept identified in (i) above. 6
Q.34. After acquiring the necessary knowledge and skills on starting an Aloevera Farm, Ashok wanted to
be the leading manufacturer of Aloevera products worldwide. He observed that the products were expensive
as the demand of the products was more than the supply. He was also keen to promote methods and practices
that were economically viable, environmentally sound and at the same time protecting public health.
Ashok's main consideration was about the amount of money paid by the consumers in consideration of the
purchase of Aloevera products. He also thought that competitors’ prices and their anticipated reactions must
also be considered for this.
After gathering and analysing information and doing correct marketing planning, he came to know that the
consumers compare the value of a product to the value of money which they are required to pay. The
consumers will be ready to buy a product when they perceived that the value of the product is at least equal
to the value of money which they would pay.
Since he was entering into a new market, he felt that he may not be able to cover all costs. He knew that in
the long run, the business will not be able to survive unless all costs are covered in addition to a minimum
profit.
He examined the quality and features of the products of the competitors and the anticipated reactions of the
consumers. Considering the same, he decided to add some unique features to the packaging and also decided
to provide free home delivery of the products.
The above case relates to a concept which is considered to be an effective competitive marketing weapon.
In conditions of perfect competition, most of the firms compete with each other on this concept in the
marketing of goods and services.
(a)Identify and explain the concept discussed above.
(b) Explain briefly any four factors discussed in the above case related to the concept so identified.
6
BUSINESS STUDIES
(Code No. 054)
Class XII (2024-25)
8. Q1-20 carry 1Mark, Q.21-24 carry 3Marks, Q.25-30 carry 4Marks and Q.31-34 carry 6 Marks
1. ____________is the process of dividing work into manageable activities and then grouping the
activities which are similar in nature.
a. Decentralisation
b. Departmentalization
c. Organisation structure
d. Delegation of authority
2. Ashna and Janit works in a reputed MNC. They have same job responsibilities and job profile. Ashna
is hardworking talented girl at the time of promotion. She didn't get promotion while Janit is not
hardworking. He received promotion based on the criterion that he is male and he can contribute more
to the organisation. State the principle of management that is violated in the above paragraph.
(a) Unity of order
(b) Unity of command
(c) Equity
(d) Scalar chain
3. The process of converting the message into communication symbols is known as:
(a) Media
(b) Feedback
(c) Encoding
(d) Decoding
4. Which of the following is not an element of social environment

a. Art and death rate,
b. constitution of the country,
c. population shifts,
d. life expectancy
In the following question, a statement of assertion is followed by a statement of reason. Mark the
correct choice as:
(a) Both (A) and (R) are correct.
(b) (A) is correct, (R) is incorrect.
(c) Both (A) and (R) are correct and (R) is the correct explanation of (R).
(d) Both (A) and (R) are correct and (R) is not the correct explanation of (R).
5. Assertion(A):Business environment enables firms to identify threats and warning signals.
Reason(R): Environmental awareness helps an organisation to identify threats to its business
6. It is easy to scan the environment but it is very difficult to know how this changes will influence
business decision .Sometimes change may be minor but it might have large impact .
Which features of business environment is being highlighted in the above statement.
a. complex
b. relative
c. certain
d. dynamic
7. Sneha is appointed as a Factory Manager in a ‘student note book’ manufacturing company. She was
given a target of producing 50,000 student note books per month. She knew that the ‘essence of
management is to achieve desired results’ but she does not know ‘how to ensure that the work goes on
according to plans.’ Guide her by arranging the process so that she is able to achieve the desired result.
a. Setting Performance Standards
b. Comparing Actual Performance with Standards
c. Analysing Deviations
d. Measurement of Actual Performance
e. Taking Corrective Action
Choose the correct alternative
i) a-b-c-d-e
ii) a-d-b-c-e
iii) d-a-c-b-e
iv) d-c-a-e-b
8. Name the process of working with and through others to effectively achieve organisational objectives
by efficiently using limited resources in a challenging environment.
a. Management
b. Planning
c. Organizing
d. Controlling
9. (I) Delegation of authority is inevitable and decentralisation is voluntary.

(II) Scope of delegation of authority is limited and the scope of decentralisation is broad.
Above both statement are:
(a) Both Statements are True
(b) Both Statements are False
(c) Statement (I) is True and Statement (II) is False
(d) Statement (I) is False and Statement (II) is True
OR
‘if we delegate authority we multiply it by two if we didn't realise it you multiply it by many.’ the
statement mentioned above relates to two important concept of management. Identify these-
a. Responsibility and accountability
b. Delegation and centralization
c. Decentralization and centralization
d. Delegation and decentralization
10. Match the concept marketing in column 1 with their respective definition in column 2
Column I Column II
a Product concept (i) Relates to maintaining high quality of the product
b Selling Concept (ii) Relates to satisfying consumer needs
c Marketing Concept (iii) Relates to aggressively persuading buyer to
purchase the product
Choose the correct alternatives:
I. a-i,b-ii,c-iii
II. a-iii,b-i,c-ii
III. a-i,b-iii,c-ii
IV. none of the above
OR
‘Bending the customer according to the product and development of the product according to
customers need’ are two important concept of marketing management identify the concepts
a. Product concept and Selling concept
b. Selling concept and societal concept
c. Selling concept and marketing concept
d. Production concept and selling concept
11. The Government of India launched “Make in India” initiative in September, 2014 to increase foreign
direct investment (FDI) in 25 sectors. As of April, 2015, FDI inflow in India increased by 48% since
the launch of “Make in India” initiative. FDI continues to increase as of now.
Identify the concept being described in the above lines, with regard to inflow of FDI.
(a) Demonetisation
(b) Privatisation
(c) Liberalisation
(d) Globalisation
Read the text and answer the questions No-12-15

Rajon chooses a person called Mahesh who is authenticated to buy or sell securities on his behalf. He is
registered by SEBI .Then, Rajon opened an account in the bank through his person .Then he took the
next step .He issues an order to the person in which he specifies the number and type of securities to be
purchased or sold. This process moves forward. After obtaining instruction from Rajon the selected
person purchases shares of Cipla Company in the Account .This Account contains the name and price
of the securities ,brokerage fees and name of the parties involved. Then comes the final stage of the
process and securities transactions were completed by Mahesh on behalf of Rajon.
12. Identify the process highlighted in the above case

a. trading procedure on a stock exchange
b. opening a demat account
c. trading procedure on a primary market
d. none of above
13. Which type of account is being indicated here

a. Demat account
b. savings account
c. current account
d. nominal account
14. what is the role of bank here

a. underwriter
b. depository
c. participant broker
d. none of the above
15. What is the role of the person he has chosen

a. underwriter
b. broker
c. depository participant
d. None of the above
16. Identify an important principle of management control in which only significant deviation which go
beyond the permissible limit should be brought to the notice of management
a. Management by exception,
b. control by exception,
c. critical point control,
d. a and b
Read the following text and answer question No. 17-20 on the basis of the same
Baje was a pen manufacturer. He used to make ballpoint pens in a small factory in the basement of his
house. Daily he would go to the market place and distribute pens to the retailers. Some of the pens were
sold by his office owned by meeting persons on road. He had not kept any name for his pens. They were
just blue, black and red pens. One of his friends – Boju suggested him to keep a good name of his pens.
He kept his own name and started selling pens with the name of Swadesi Pens. Then there were three
categories of pens- Swadesi red, Swadesi blue and Swadeshi black.Gradually his business started to
pick up even more and he made good revenue as now, people were able to identify his pens.
17. Which function of marketing is highlighted in the above case?

a. Branding
b. levelling
c. packaging
d. pricing
18. Which element of promotion mix has been highlighted in the above case?
a. Sales promotion
b. public relation
c. personal selling
d. advertisement
19. What types of names do you see in the above case?

a. Generic name
b. brand name
c. both a and b
d. neither a nor b
20. Which of the following functions of branding has been highlighted above.
a. product identification
b. quality assurance
c. differential pricing
d. introduction of new product
21. Some people argue that Management does not possess all the features of Profession. Mention any three
such features which Management does not possess.
22. Human Resource Management includes many specialized activities and duties which the human
resource personnel must perform. In the light of this statement, explain any four such duties performed
by Human Resource Manager
OR
Zenith Ltd. is a highly reputed company and many people wanted to join this company. The
employees of this organisation are very happy and they discussed how they came in contact with this
organisation. Aman said that he was introduced by the present Sales manager, Mr. John .
Benu said that he had applied through the newspaper and was appointed as H.R. Manager. Vaibhav
said that he was neither related to any of the employees of the organisation nor there was any
advertisement in the newspaper even then he was directly called from IIM Ahmedabad from where he
was about to complete his MBA.
(a) The above discussion is indicating an important function of management. Name the function of
management.
(b) The management function identified in part (a) follows a particular process. Explain the step of this
process which is being discussed in the above para.
23. Rahul india Limited is engaged in manufacturing high and luxury sofa for home .The target
production is 700 units. The company had been successfully attaining this targets until three months
ago. Over the last few months It has been observed that daily production varies between 600 to 650
units.
a. Identify the function of management which has been highlighted in the above context
b. Discuss the first three steps involved in the process of function identified above
24. Jayashree auto manufacturers have decided to give a special privilege to the existing shareholders to
subscribe to the new issue of shares where they will be given shares according to the proportion of
shares held by them.The company always gives special treatment to loyal stakeholders.Last year the
company was dealing through the capital market where both the buyer and seller of securities were
taking place .The owner of the company is a man of ethical business.He recently wrote an article about
watchdog of stock market.The artcle gained a lot of popularity and now is a part of curriculum of MBA
students.
Identify the institution talked and mentioned above. State also two objectives of its.
OR
Distinguish between Capital markets and Money Markets
25. Sag chemicals is looking for qualified and talented people to apply for vacant jobs in the
organisation .With the passage of time the organisation has learnt a lot and gained a lot of
experience .The company knows that when it goes for final selection of candidate it will have to design
different test .They want to test employees on the basis of their learning and decision making
ability.The company wants to ensure proper testing of recruited candidates.After this the candidate will
be judged on the basis of in-depth formal conversation .After the selection, the candidates are placed
and trained .Employees have to be trained on the basis of equipment they will be using but this training
will take place away from the workplace.
a) Which type of recruitment should the company depend upon
b) What type of test should be conducted by organisation to suit their need
c) Which stage in the selection process is highlighted after written test
d) What type of training is given to the candidates
OR
Identify the type of training involved and also categorized whether it is on the job training or off job
training
a) In a furniture manufacturing company a group of new recruits were being trained .They are trained
under an experienced trainer, Mr Biswajit. He is training them skills which will require at least 6
month of dedication under real work environment
b) Dimpal ,a Student of ABC MBA college is having a combined training program where she is having
two mentors.One mentor is from the college and the other is from the company .The idea is to give
real knowledge about corporate functioning.
26. Paresh joined as a shop level manager in the production department of a 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 a general Manager of the company.Kunal was very happy on his promotion as now he
had become what he was capable of becoming.As a good manager Kunal decided to motivate his
subordinates ,after understanding the need hierarchy theory which is based on various assumptions.He
realise that people's behaviour is based on their needs and manager can influence the behaviour of his
employees by satisfying their needs.
a. State the assumption of Need Hierarchy theory stated in the above paragraph .State the other two
assumptions of this theory.
b. State the needs of Paresh which is being satisfied through promotion.
OR
Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for
itself and had been doing well. It was known for timely completion of orders. The Production Manager,
Ms. Kanta was efficiently handling the processing of order and had a team of fourteen motivated
employees
working under her. Everything was going on well. Unfortunately she met with an accident. Umang
knew that in the absence of Ms. Kanta, the company may not be able to meet the deadlines. He also
knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of
business and goodwill. So, he had a meeting with his employees in which accurate the speedy
processing of
orders was planned. Everybody agreed to work as team because the behaviour of Umang Gupta was
positive towards the employees of the organisation. Hence everyone put in extra time and efforts and
the targets were met on time. Not only this, Umang visited Ms. Kanta and advised her to take sufficient
rest.
Identify the leadership style of Umang Gupta and draw a diagram depicting the style.
27. Directing is the heart of management process do you agree give any three reasons in support of your
answer.
28. Sikkim Dam Power limited wants to raise fund of rupees 4000000 for its new project the
management is considering the following mix of date and equity to raise this amount
Capital structure
Alternative
I II III
Equity 40,00,000 30,00,000 10,00,000
Debt 0 10,00,000 30,00,000
Other details are as follows :
(a) Interest rate on debenture 9%
(b) Face value of equity shares Rs. 100 each
(c) Tax rate 30%
(d) Earning before interest and tax(EBIT) 8,00000
i) under which of the three alternatives will the company be able to take advantage of trading on
equity
ii) Does earning per share always raise with increase in debt.
29. Explain any four factors affecting the decision that determines the amount of profit earned to be
distributed and to be retained in the business
30. Explain the following rights of the consumers provided by consumer protection Act 2019
a. Right to safety
b. Right to be heard
31. FW Taylor gave scientific outlook to management.He developed “principles of scientific

Management” which created ripples in the field of management. He has also devised many techniques
for implementing the principles of management. One of the principles of Scientific Management
emphasizes that "to make the employees learn the "best method" of production, training to workers is
essential”. It further emphasizes that each person should be scientifically selected and the works
assigned to the employees should suit their physical, mental and intellectual capabilities.
a. Name and explain the principle of Scientific management involved.
b. Name and explain the principle of Scientific Management which is concerned with selecting the
best way of performing a job through application of scientific analysis and not by intuition or hit
and trial methods.
c. Explain differential wage system [a} above.
32. Brilliant technology deals in bulb manufacturing business .It plans for successful year of production
and sale this year.It has in advance given target to all its department and employees .The department
and employees are happy about this.They know that now they would not have to do unconcerned
activities thus leading to more focused approach resulting in saving of resources .The company is
thinking of starting to new plants in the southern portion of India.For this some concrete plan has to be
made .The main core team of the company has decided to weigh all the options and then choose the
best one.the road might be long but the company is geared to face all the challenges
In the above case identify and explain importance of planning highlighted above .
OR
“ Z Look India Ltd is planning to expand the existing business . it has identified many more alternatives
for the expansion and thoroughly discussed amongst the members of the organization”.
a. Identify and explain the steps in the process of planning being discussed above.
b. Also explain the remaining steps which will have to be carried out to complete the process.
33. Voltage fluctuations have been common and quite high in India .They harm our electrical appliances
like television ,refrigerators and air conditioners ,often leaving them in a permanently damaged
condition. N-Guard company decided to manufacture stabilizer for the North India where the voltage
fluctuation ranges from 220 voltage to 230 voltage. Once the demand for the North India was taken
care of, they decided to launch stabilizer of varying voltage from 90 to 260 for meeting the
requirements of voltage fluctuation in other region of India also .Three engineers were appointed for
South ,West and East region of India ,as the voltage was different in all the three regions.Though all the
engineers are appointed to manufacture stabilizers but the product differed from region to region
a. Identify organisational structure of N Guard company
b. state any two advantages and two limitations of structure identified in the above para
34. Explain any six characteristics that you will keep in mind while choosing a brand name
OR
Name the element of marketing mix which affects revenues and profits of a firm. Explain any five
factors which help in determining this element.
------------------------------------
SAMPLE QUESTION PAPER - 4
BUSINESS STUDIES
(Code No. 054)
Class XII (2024-25)

Q.NO. QUESTIONS M
1 Permit has retired from the post of Section Officer. At what level of management is 1
he working?
A. Top Level Management
B. Middle Level Management
C. Supervisory or operational level.
D. None of the above
2 Rajesh’s company follows a clear hierarchy where each employee reports to one 1
superior and works according to instructions from that person only.
Which organizing principle is being followed in Rajesh’s company
A. Unity of Command
B. Unity of Direction
C. Scalar Chain
D. Span of Control
3 Read the following statements: Assertion (A) and Reason (R). Choose the correct 1
alternative from those given below:
Assertion (A): Primary aim of financial management is to maximise shareholder’s
wealth.
Reason(R): Company’s funds belong to the Shareholders and the return earned by
them is determined by the market value and price.
Alternatives:
A. Both Assertion (A) is false and Reason (R) are true.
B. Both Assertion (A) and Reason (R) are false.
C. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the
correct explanation of the Assertion.
D. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct
explanation of the Assertion(A)
4 Read the following statements carefully: 1
Statement I: Capital market instruments are considered riskier both in return and
repayment of principal.
Statement lI: Capital market investment generally yields a higher return for investor.
In the light of given statements, choose the correct alternative from the following:
A. Both the statements are true.
B. Both the statements are false.
C. Statement I is true, Statement II is false.
D. D. Statement II is true, Statement I is false.
5 Internal sources of recruitment are often preferred because they 1
A. Encourage innovation by bringing in new talent
B. Increase employee morale through promotions and transfers
C. Increase Recruitment costs and training expenses.
D. D. Limit the choices available to the company.
6 The government of a country recently introduced a new Goods &Servies (Tax) law 1
to streamline the tax system and reduce the tax burden on businesses.
The introduction of GST falls under which component of the business environment
A. Social Environment
B. Political Environment
C. Legal Environment
D. Economic Environment
7 Identify the products for the quality marks given below: 1
i) ii)
A. Electronic, Woollen garment

B. Food Product, woollen garment
C. Electronic, Eco mark
D. Agricultural Product, Woollen garment
8 Read the following statements: Assertion (A) and Reason (R). Choose the correct 1
alternative from those given below:
ASSERTION (A): Planning and Controlling are inseparable twins of management.
REASON (R): Planning and Controlling are two separate functions but are closely
related to each other.
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 is not the correct
explanation of Assertion.
C. Assertion (A) is true, Reason (R) is false.
D. Assertion(A) is false, Reason(R) is true.
9 “Mohan, the HR manager of ABC Ltd. has been instructed by the management to 1
fill a vacant position of Marketing Manager. The company wants to fill this position
internally. Identify the first step Mohan should take in the staffing process.”
A. Selection
B. Recruitment
C. Estimating manpower requirement
D. Performance Appraisal
10 “Renuka, the Sales Manager of ABC Company, set a half yearly sales target of 20 1
lakhs. However, the actual sales achieved were 18 lakhs. Identify the step that will
control sales performance
A. Establishing standards and targets
B. Monitor and report sales performance
C. Take corrective actions to improve sales
D. All of the above
11 Identify the incorrect statement with respect to ‘dividend decision’: 1

A. Retained earnings can be used for the company’s growth and expansion.
B. Dividend Policy can impact the share price of the company
C. Dividend decisions determined the proportion of profits distributed to
shareholders
D. A high growth company usually pays high dividends.
12 A consumer purchases a product that proves to be defective. Which of the following 1

forums can the consumer approach for redressal
A. District Consumer Disputes Redressal Forum
B. State Consumer Disputes Redressal Commission
C. National Consumer Disputes Redressal Commission
D. All of the above
13 Match the statements given in column I with the importance of business 1

environment given in column II
COLUMN I COLUMN II
A Bringing changes in the Organisation (I) First mover advantage
as per changes in in environment
B Environment provides maximum profit (II) Early warning signal
by identifying the opportunity at the
earliest
C Constraints or threats of business know (III) Assembling Resources
in advance
D Collecting right type of resources as per (IV) Adapt with the rapid
the requirement changes
Choose the correct option from the following:
A. (a)-(iii), (b)-(ii), (c)-(i), (d)-(iv)
B. (a)-(ii), (b)-(i), (c)-(iii), (d)-(iv)
C. (a)-(iv), (b)-(i), (c)-(ii), (d)-(iii)
D. (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
14 A variety of programme designed to promote or protect the company’s image and 1

its products in the eyes of the public.
A. Advertising
B. Public Relation
C. Personal Selling
D. Sales Promotion
15 Rohit, the CEO of XYZ Ltd. assign tasks to his team members and ensures they 1
understand their roles. He also provides guidance and feedback. Which directing
function is Rohit performing?
A. Motivation
B. Leadership
C. Communication
D. Supervision
16 A consumer purchased a defective refrigerator from a local dealer. The dealer 1
refused to replace or refund the amount. Which consumer right is being violated?
A. A Right to Safety
B. Right to Information
C. Right to Redressal
D. Right to choose
17 A decision to purchase new machinery for production would fall under which of the 1
following areas of financial management?
A. Working Capital Management
B. Financial Leverage
C. Capital Budgeting
D. Dividend Policy
18 A high debt-equity ratio states that a company 1

A. Has high financial risk
B. Pays high dividend
C. Has high liquidity
D. Has no retained earnings.
19 A consumer purchased a defective air conditioner from a reputable company. The 1

consumer can seek which remedy under the Consumer Protection Act,2019?
A. Removal of defects or deficiencies
B. Replacement or refund
C. Compensation for mental agony
D. All of the above
20 Read the following statements carefully: 1

Statement I: An optimal capital structure is one that maximizes the company’s
cost of capital.
Statement II: An optimal capital structure is one that minimizes the company’s
cost of capital
A. Both the statements are true.
B. Both the statements are false.
C. Statement I is true, Statement II is false.
D. Statement II is true, Statement I is false.
21 Explain briefly any two limitations of planning 3

OR
State any three features of planning.
22 Explain any 3 points of importance of directing function of management. 3

OR
What is meant by leadership? Enumerate any two style of leadership
23 Bhanu the finance manager of MN Ltd., needs to manage the company’s working 3
capital efficiently. The company’s current assets are Rs. 50 lakhs and Current
liabilities are Rs.40 lakhs.
Calculate the working capital and suggest one measure to improve it.
24 Flipkart, an e-commerce giant, invests heavily in artificial intelligence (AI) and data 3
analytics to enhance customer experience. The company also partners with logistic
providers to improve delivery efficiency.
Explain how the technological environment affects Flipkart’s business operations.
25 XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote 4
village as there was no reliable supply of electricity in rural areas. The revenue
earned by the company was sufficient to cover the costs and the risks. The demand
of lanterns was increasing day by day, so the company decided to increase
production to generate higher sales. For this they decided to employ people from the
nearby villages as very few job opportunities were available in that area. The
company also decided to open schools and crèches for the children of its employees.
Identify and explain the objectives of management discussed above.
26 Filling vacancies for various job positions from within the organisations has many 4
benefits. State any four such benefits.
OR
Explain briefly Vestibule Training and Apprenticeship Training.
27 Rahul, a software engineer at ABC Infosys, has been working for five years. He 4
earns a decent salary and has a comfortable lifestyle. However, he feels unfulfilled
and dissatisfied with his job. Recently, the company introduced changes to improve
employee satisfaction
1. Provided on-site childcare facilities.
2. Introduced flexible working hours.
3. Offered opportunities for professional growth and development.
4. Recognized and rewarded employees for outstanding performance.
Identify how the changes introduced by ABC Infosys address Rahul’s need as per
Maslow’s Hierarchy of Needs.
28 Explain briefly the last two steps in the process of controlling. 4

OR
State any four importance of controlling.
29 ABC Ltd., a leading manufacturer of electronic devices, aims to expand its market 4
share by 20% within the next two years. To achieve this, the company decides to:
1. Diversify its product line to include smart home appliances.
2. Increase its online presence through e-commerce platforms.
3. Enhance its research and development capabilities.
Identify the type of plan being implemented by ABC Ltd. and explain its
characteristics.
30 Distinguish between Product and Production concept of marketing philosophies on 4

the following basis.
a) Starting point b) Main focus iii)Means iv) Ends
31 Explain any four functions of Stock Exchange 6
32 Analyse the importance of delegation of authority in organizational management, 6

highlighting its benefits and limitations.
OR
Distinguish between formal and informal organisation on the basis of
i) meaning, ii) nature, iii) origin,
iv) Behaviour, v) Authority and vi) flow of communication
33 'Puneet Constructions Ltd’. had never given any importance to the suggestions of its 6
employees. All the employees in the company considers themselves superior than
the other. They neither help anybody nor get help from anybody. Last year, Mr.
Shivam was appointed as Chief Manager of the company. He was an MBA from
IMM Ahmedabad and also seven-year experience of the same post. Immediately
after taking charge he decided to deal with both the problems of the company. He
convened a meeting of all the employees and said, "All the employees are free to
give their suggestions. Besides, the one who gives the best suggestion will be
awarded a prize. In addition, he advised them to discard ego and extend help in each
other’s work. We will have to give it the shape of a movement. Those who
participate in this movement will be promoted at the earliest." Shivam proved to be
a good leader.
Identify and explain the principles of management discussed above by quoting the
lines.
34 Explain any four features of marketing. 6

Describe the concept of Promotion and explain its elements.
SAMPLE QUESTION PAPER - 5
BUSINESS STUDIES
(Code No. 054)
Class XII (2024-25)

1. Chhavi, the General Manager of Parashar Equipment, performs the managerial functions 1
of planning organising, staffing, directing and controlling as an ongoing process. Which
feature of management is highlighted by the above?
a) Goal oriented process
b) Dynamic function
c)Continuous process
d)Group activity
2. The process of holding securities in electronic form is called dematerialization. Which of the 1
following Statement does not relate to dematerialization?
a)Demat securities can be pledged or hypothecated to get loans
b)Smooth transfer and settlement of trade through a single account in shares
c)Existing physical shares cannot be converted into electronic form
d)No danger of loss, theft or forgery of share certificates
3. In planning, generally managers have to follow pre-determined plans and they are not 1
in a position to change it. This statement highlights the following limitation of planning:
a)Planning may not work in a dynamic environment
b)Planning is time-consuming
c)Planning leads to rigidity
d)Planning does not guarantee success
4. Companies with stable earnings are likely to: 1

i. Pay higher dividend ii. Not pay any dividend
iii. Pay a lesser dividend iv. Dividend is not affected by stable earning
a)only i
b)iii and iv
c)ii and iii
d)only iv
5. Controlling is a function which brings back the management cycle to: 1

a)Management
b)Planning
c)Organizing
d)Directing
6. Identify the principle of management followed in the following pictorial representation. 1
a)Scalar Chain
b)Order
c)Unity
d)Equity
7. Financial market ________ financial assets. 1

a)Exchange
b)Creates
c)Creates and Exchange
d)Interchange
8. Suresh has been working under the guidance of Harsh, a carpenter, for the last three years to learn 1
the different skills of this job. Name the on-the-job method of training Suresh is undergoing.
a)Internship Training
b)Apprenticeship Training
c)Induction training
d)Vestibule Training
9. Which of the following statements is false regarding financial management? 1

a)Aims at reducing the cost of funds procured.
b)Facilitates price discovery for securities of company.
c)Is concerned with optimal procurement as well as usage of finance.
d)Aims at ensuring availability of enough funds whenever required.
10. Assertion (A): Identification and division of work is the first step in the process of organising. 1
Reason (R): Organising involves identifying and dividing the work that has to be done in accordance with
previously determined plans.
a)Both A and R are true and R is the correct explanation of A.
b)Both A and R are true but R is not the correct explanation of A.
c)A is true but R is false.
d)A is false but R is true.
11. Choose the incorrect statement from the following about functions of a Stock Exchange: 1
a)Ensures safety of transactions
b)Contributes to economic growth
c)Provides scope for speculation
d)Provides liquidity and marketability to new securities
12. A public issue of equity may reduce the management’s holding in the company and make it 1
vulnerable to takeover. This factor also influences the choice between debt and equity especially in
companies in which the current holding of management is on a lower side. The factor affecting the choice
of capital structure is ________.
a)Risk consideration
b)Control
c)Cost of debt
d)Cost of equity
13. Statement I: Restrictive trade practice is a trade practice for the purpose of promoting sale, use or 1
supply of any goods or service falsely represents its quality, standard, quantity, composition,
style or model.
Statement II: Unfair trade practice is a trade practice which manipulates price or affect the flow of
supplies in the market relating to goods and services in such a manner that an unjustified cost is imposed
on the consumer.
a)Both the Statements I and II are correct.
b)Both the Statements I and II are not correct.
c)Statement II is correct and Statement I is not correct.
d)Statement I is correct and Statement II is not correct.
14. Planning ensures that the goals are clearly stated, so that they act as a guide for deciding what 1
action should be taken and in which direction. If goals are well-defined, employees are aware of
what the organisation has to do to achieve those goals. The above Para highlights the following
point of importance of planning:
a)Planning provides direction.
b)Planning promotes innovating ideas.
c)Planning is pervasive.
d)Planning establishes standards for controlling.
15. The cheapest source of finance is: 1

a)Debenture
b)Preference share
c)Retained earning
d)Equity share capital
16. Statement I: Market offering refers to a complete offer for a product or service, having 1
given features like size, quality, taste, etc; at a certain price; available at a given outlet or location
and so on.
Statement II: A good market offer is the one which is developed after analyzing the needs and
preferences of the potential buyers.
a)Both the Statements I and II are not correct.
b)Statement I is correct and Statement II is not correct.
c)Statement II is correct and Statement I is not correct.
d)Both the Statements I and II are correct.
17. Dreams can be turned into reality when managers think in advance what to do and how to do it. 1
This statement highlights the planning function of management. Identify the first step in the process
of planning.
a) Identifying alternative courses of action
b) Developing premises
c) Selecting an alternative
d) Setting objectives
18. Match the concept of management in Column I with their respective definition in Column II: 1
(a)Effectiveness (i) Doing the task correctly and with minimum cost.
(b) Efficiency (ii) Finishing the given task on time.
(c) Process (iii) The primary functions or activities that

management performs to get things done.
a)(a) - (i), (b) - (ii), (c) - (iii)
b)(a) - (ii), (b) - (i), (c) - (iii)
c)(a) - (iii), (b) - (ii), (c) - (i)
d)(a) - (i), (b) - (iii), (c) - (ii)
19. Arun is running an Advertising agency and earning a lot by providing this service to big industries. 1
The working capital requirement of the firm will be:
a)Nil
b)More
c)Moderate
d)Less
20. Keya Ltd. is a large organisation manufacturing a popular brand of Desi ghee and supplying 1
it to various states of India. They manufacture 10,000 litres of Desi ghee every day and pack in
cartons of 250 ml, 500 ml and 1 liter sizes. The production manager ensures that one out of every ten
cartons of each size is checked for quality control everyday. The step of the controlling process discussed
in the above Para is:
a)Setting performance standards
b)Analyzing deviations
c)Comparison of actual performance with standards
d)Measurement of actual performance
21. White Elpis Ltd. has recently given job to two employees. Ravi and Suraj are two friends 3
who are from the same college. They both have different work experience as Ravi is a bit older
and had worked in an MNC earlier. However both are paid equally. Every person in their department
knows that Ravi is more efficient than Suraj. Definitely they see a mismatch in the salaries and
the efficiencies of the employees in the company. The marketing department of the same company
has this year set a monthly target of 10000 units of sports items to be sold. In the month of March 6000
items were sold and the deviation was 4000 units. In the month of April 8000 units were sold and
the deviation was 2000 units. Despite these deviations no effort is being made to track the performance
of the company to minimize the gaps. In the above case which two functions of management have
been discussed? A very important concept of management has also been overlooked. Identify it.
22. Explain any two features of Motivation as an element of Directing. 3

(OR)
Give one example of employee recognition.
23. State how the following factors affect the working capital requirements of a company: 3
i. Seasonal Factors ii. Production Cycle iii. Operating Efficiency
24. What are the responsibilities of a consumer? 3

(OR)
Saksham has a dairy supplying milk, cream, Paneer, and desi ghee. For earning more profit, he is
practicing adulteration by mixing toned milk in full cream milk and animal fats in desi ghee. His
customers have complained of several health problems due to adulteration. Vaani is one of the customers
of Saksham, what steps can she take against Saksham under Consumer Protection Act?
25. The process of planning involves certain logical steps. Explain the first four steps of this "process". 4
(OR)
'Planning is the basic function of management'. Comment.
26. State any three points of importance of Controlling function of management. 4

(OR)
Explain any three points that highlight the relationship between planning and controlling
function of management.
27. The Production manager of Britannica Limited instructs a salesman to go slow in selling the 4
Products whereas the marketing manager is insisting on fast selling to achieve the target. Which
Principle of management is being violated in this case?
28. Give the meaning of Autocratic and Democratic style of Leadership 4
29. What is meant by a Primary market? Briefly explain the concept of an Initial public offer. 4
30. Explain the concept of Consumer Protection and any three points of its importance from the 4
point of view of consumers.
31. Explain in brief the various steps involved in the process of staffing. 6
(OR)
Harish, the director of a company, is planning to manufacture stuffed toys for utilizing waste materials
from one of his garment factories. He decided that this manufacturing unit will be set-up in a rural
area so that people of that area will have more job opportunities. For this, he selected Rehman,
Anita Banerjee, Harpreet Kaur and Umesh (a differently abled but very intelligent and creative
person in designing) as the heads of Sales, Accounts, Purchase and Production Departments respectively.
i. Identify and state the next three steps that Harish has to follow in the staffing process after selecting the
heads of different departments.
ii. Identify any two values that Harish wants to communicate by setting-up this manufacturing unit.
32. Indore Cattle Feeds Limited’ is a well known company of its area. For the last few days 6
differences have cropped up between the management and workers. The workers are demanding more
bonus. This matter has aggravated so much that the attention of both the parties has been diverted
from production to the division of profit. Consequently, the profits of the company began to fall
down. In order to assess the situation of company’s rapidly falling down of profits, a team of
specialists in management was invited. After investigations, besides Management- Workers’ differences,
one more fact was revealed. That fact was that the Purchase Manager of the company was purchasing
the raw material from another company run by his own son at a price more than the market
rate. Consequently, increase in cost of production and reduction in profits had taken place. When the
news of deteriorating environment of the company was leaked out, the customers felt
disappointed. Consequently, many customers left the company and some of them were thinking
on these lines. However, the pleasing factor for the company is this that a big company in competition
with it has closed its business because of heavy losses. It has advertised in a newspaper also for the
sale of factory.
a. Which technique of scientific management will be suitable and why for the company to rise above
this current situation?
b. Which principle of management given by Henry Fayol is being ignored by the company? Explain
by quoting the relevant lines.
c. Which factors of Business Environment are affecting the company? Identify the type and factors of Business
Environment.
(OR)
With rapid advancements in the field of replacing manual work with machines, a Robot named
Sujan has been invented and developed and is likely to get the citizenship of the country of its origin.
It has led to a stage where machines are being used in place of human beings. Sujan is doing all
types of work whether routine or hazardous and even answering the queries of people. However,
this issue has to be carefully looked into keeping in mind the consumer attitude towards product
innovations, problem of unemployment and its impact on the quality of life. Through the
orders and decisions of various commissions and agencies at Centre, State or Local level
the Indian Government is playing a very significant role in balancing the use of human and machine
power. Various dimensions of business environment are being discussed in the above Para.
By quoting the lines from the above identify and explain any three dimensions.
33. What is Organizational Structure? Distinguish between Functional and Divisional 6

structure on the following bases:
(i) Formation (ii) Managerial development (iii) Responsibility (iv) Suitability.
34. Haryaram is a famous chain selling a large variety of products in the Indian market. 6
Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price
than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and
easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through
various grocery stores so that the products are made available to customers at the right place, in the
right quantity and at the right time. It regularly uses different communication tools to increase its sales.
The above paragraph describes the combination of variables used by Haryaram to prepare its
market offering. Identify and explain the variables.
ANSWER KEY OF SQPs
ANSWER KEY – SQP – 1
Q.
No
01 (a) Debt 01 Mark
02 (c) Customer value 01 Mark
03 (b) Dynamic nature 01 Mark
04 (a) Gathering and analysing market information 01 Mark
(c) Opening a trading account and Demat account, Placing an order, Execution of order,
05 01 Mark
Settlement of order
06 (b) Co-ordination 01 Mark
07 (c) 5 01 Mark
08 (a) Controlling is the last function of management 01 Mark
09 b) Selling is a part of marketing activities. 01 Mark
10 (d) Assertion (A) is false and Reason (R) is true. 01 Mark
11 d) Collection from debtors 01 Mark
12 (b) Ensuring order and discipline 01 Mark
13 (c) Both the Statements I and II are correct 01 Mark
14 (c) Economic dimension, Technological dimension, and Social dimension 01 Mark
15 (b) Organising 01 Mark
16 (c) Both the Statements I and II are correct 01 Mark
17 (d) Interrelatedness 01 Mark
18 (a) (i) – (C), (ii) – (D), (iii) – (B), (iv) – (A) 01 Mark
19 (a) Management 01 Mark
20 (d) Social 01 Mark
The functions performed by the top-level management are: Each
(a) They formulate overall organizational goals and strategies for their achievement. Function
21
(b) They coordinate the activities of different departments. Carries
(c) They are responsible for the welfare and survival of the organization. 01 mark
A manager has his own limitations, in terms of time An and capability. An attempt to
control everything will result in controlling nothing. To have an effective control, 03
attention must be focused on factors critical to the performance of the organisation. The Marks
22
concept of critical point control says that the key result areas which are critical to the For
A
success of an organisation should be focused. Further, Management by exception says Correct
that significant deviation which goes beyond the permissible limits should be brought answer
to the notice of management, to receive immediate action on a priority basis.
(i) Steps in the process of controlling discussed in the above Para:
01 mark
(a) Setting performance standards
For name
(b) Measuring actual performance
22 02 marks
(c) Analyzing deviations
B For
(ii) Steps not discussed in the above Para:
explanati
(a) Comparing actual performance with standards to find out the deviations.
on
(b) Taking corrective action if deviations go beyond the acceptable limits.
(a) Reference and background checking: After the employment interview, the next step
is to gather more information about the candidates from indirect personal sources such
as previous employer, principal of the college or institution. This investigation is based
Each
on references supplied by the candidates and is carried with the objective of verifying
Step
information and gaining additional information about the applicant.
23 Carries
(b) Selection decision: After the candidate passes the tests and interviews, final decision
01
for selection is made after considering the views of concerned manager.
mark
(c) Medical Examination: The selection process is not complete without the medical or
physical test. A candidate who successfully crosses all the hurdles and passes the
medical test, is given job offer.
Securities and Exchange Board of India (SEBI) has been setup to regulate such
companies and their offers. The objectives of Securities and Exchange Board of India
(SEBI) are:
(i) To regulate stock exchanges and the securities industry to promote their orderly
functioning. Each
24
(ii) To protect the rights and interests of investors, particularly individual investors and Objective
A
to guide and educate them. Carries
(iii) To prevent trading malpractices and achieve a balance between self-regulation by 01
the securities industry and its statutory regulation. mark
(iv) To regulate and develop a code of conduct and fair practices by intermediaries like
brokers, merchant bankers etc. with a view to make them competitive and professional.
Two money market instruments that can be used by private companies are as follows
(i) Commercial Paper It is issued by large credit worthy companies to raise short-term
Any
funds at lower rates of interest than the market rates. It is an unsecured promissory note,
02 only
having a maturity of 15 days to one year. The primary purpose is to meet working
24 Each
capital requirements but it is also used to cover the expenses associated with the issue
B Carries
of securities like flotation costs.
1.5
(ii) Commercial Bill It is a bill of exchange used by business firms to meet their
marks
working capital needs. It is a short-term, self liquidating, negotiable instrument used
for financing credit sales of a firm.
GOOD QUALITIES OF A LEADER
1. Physical qualities: - A good leader must possess a good height, weight, health and
appearance. Health and endurance help a leader to work hard and inspire others also to
Any 4
do so.
Qualities
2. Knowledge: - A good leader should have required knowledge and competence, so
Only.
that he can influence others.
25 Each
3. Integrity: - A leader should possess high level of integrity and honesty, so that he can
A Point
be a role model to others.
Carries
4. Initiative: - A leader should have courage and initiative to do things on his own,
01
rather than waiting for others to do it first.
mark
5. Communication skills: - A leader should be a good communicator. He should be able
to clearly explain his views to others. He should not only be a good speaker, good
listener, teacher and counselor.
6. Motivation skills: - A leader should understand the needs of his employees and
motivate them by satisfying their needs.
7. Self-confidence: - A leader should have a high level of confidence. He should not
lose confidence even in the most difficult times.
8. Decisiveness: - A leader must be decisive in the sense that once he has taken a
decision, he should be firm on it.
9. Social skills: - A leader should be sociable and friendly with his colleagues and
followers, so that he can understand them and their needs.
1. Clarifies the ideas before communication: - Sender should be clear about the message
he is about to send.
2. Communicate according to the needs of receiver: - The level of understanding of the
receiver should be taken into account before the message is delivered.
3. Consult other before communicating: - It is better to discuss before the message is
conveyed to the receiver Any
4. Be aware of languages, tone and content of message: - Be aware of language, tone 04
and content of message. Language should be clear, content should be meaningful and Method
tone should be appealing to the receiver. only.
25
5. Convey things of help and value to listeners: - Needs of the receiver should be clearly Each
B
understood so that the message could be of help and add value to the receiver. Method
6. Ensure proper feedback: - Communicator should ensure if the message has reached carries
the receiver or not. 01
7. Communicate for present as well as future: - Communication is needed to meet the mark
present as well as future commitments to maintain consistency.
8. Follow up communications; - There should be regular follow up and review on the
instructions given to subordinates.
9. Be a good listener: - A message sender can only be good in communication if he
listens to the other party properly and then gives his response.
External sources of recruitment are needed to bring fresh talent in the organization.
Advantages of external sources of recruitment:
(a) Fresh talent. The entry of fresh talent into the organisation is encouraged. New
employees bring new ideas to the organisation.
(b) Wider choice. External sources provide a wider choice of personnel to choose from.
01
(c) Qualified personnel. Requisite type of personnel having the required qualifications,
Mark
training and skills are available for the external sources.
For name
(d) Competitive spirit. The internal employees aspiring for higher positions prepare
Of the
26 themselves for improving their performance to compete with the outsiders for higher
Source
A jobs. Limitations of external sources recruitment are:
03 marks
(a) The present employee lose their sense of security and tend to develop indifference
For
towards the organisation.
merits
(b) It is more expensive and time consuming to recruit peuple from outside.
And
(c) Deterioration in employer-employee relationship which may cause industrial strife
limitation
and unrest, strikes and lockouts.
s
(d) Personnel selected from outside may suffer from danger of adjustment to the new
work environment.
(a) Intelligence test: These tests measure the overall intellectual capacity or intelligence Any 4
of an individual. These tests measures the ability to understand instructions and to make tests
26
decisions. These tests also reveals whether an individual has the capacity to deal with only.
B
new problems. Each
Test
(b) Aptitude test: These tests measure the ability or potential of a candidate to learn a Carries
new job or skill. Defects in a person's sensory or intellectual capacity can be detected 01
through these tests. mark
(c) Personality test: These tests are used to judge the psychological make up of a person.
These tests discover clues to an individual's value system, emotional reactions, maturity
and his characteristic mood. These tests are used to select supervisors, executives and
for counseling people.
(d) Trade test: These tests measure the level of knowledge and skills of an individual
already acquired through training and on the job experience. Such tests are useful in
the selection of stenographers, typists, sales persons, etc. These tests can be oral and
written.
(e) Interest test: These tests identify individual's likes and dislikes in relation to work.
These tests help to identify the kind of work that will satisfy him.
RIGHTS OF A CONSUMER
(a) Right to Safety. According to this right, a consumer has the right to be protected
against goods and services which are hazardous to life and health. For example,
electrical goods which are manufactured with substandard products or do not conform
to the safety norms might cause serious injury. Thus, consumers are educated that they
should use electrical goods which have ISI mark as this would be an assurance for such
products in meeting quality specifications.
(b) Right to be Informed. According to this right, a consumer has the right to have
complete information about the product he intends to buy including its ingredients, date
of manufacture, price, quantity, directions for use etc.
(c) Right to According to this right, consumer has freedom to choose from a variety of Any
products at competitive prices. This implies that the marketers should offer a wide 4
variety of products in terms of quality, brand, prices, size etc. and allow the consumer Rights
to make a choice from amongst these. Only.
27 (d) Right to be Heard. According to this right, consumer has the right to file a complaint Each
and to be heard in case of dissatisfaction with a good or a service. It is because of this Right
reason that many enlightened business firms have set up their own consumer service Carries
and grievance cells. Many consumer organizations are also working towards this 01
direction and helping consumers in redressing their grievances. mark
(e) Right to Seek Redressal. According to this right, a consumer has the right to get
relief in case the product or service falls short of his expectations. The Consumer
Protection Act provides a number of reliefs to the consumers including replacement of
the product, removal of defect in the product, compensation paid for any loss or injury
suffered by the consumer etc.
(f) Right to Consumer Education. According to this right, a consumer has the right to
acquire knowledge and to be well informed. He should be aware about his rights and
the reliefs available to him in case of a product or service falling short of his
expectations. Many consumer organizations and businesses are taking an active part in
educating consumers in this respect.
It refers to the determination as to how the funds required by the business will be Any
obtained from various long-term sources. 4
1. Cost: - The cost of raising funds from different sources is different. The cheapest Factors
source should be selected (usually cheapest is debt) Only.
28 2.Risk: - The risk associated with different sources is different. More risk is associated Each
with borrowed funds as compared to owner’s fund as interest is paid on it and it is Factor
repaid also, after a fixed period of time or on expiry of its tenure. (usually low risk is Carries
equity) 01
mark
3. Flotation cost: -
Thecostsinvolvedinissuingsecuritiessuchasbrokerscommission,underwriters‟fees,
expenses on prospectus etc. are called flotation costs. Higher the flotation cost, less
attractive is the source of finance. (usually floatation cost is low if it is debt)
4. Cash flow position: - In case the cash flow position of a company is good enough
then it can easily use borrowed funds and pay interest on time.
5. Fixed operating cost: - If a business has high fixed operating cost then it must reduce
fixed financing costs. Hence lower debt financing is better.
6. Control consideration: -
Incasetheexistingshareholderswanttoretainthecompletecontrolofbusinessthen finance
can be raised through borrowed funds but when they are ready for dilution of control
over business, equity can be used for raising finance.
7. State of capital market: - During boom, finance can easily be raised by issuing shares
but during depression period, raising finance by means of debt is easy.
Democratic Leadership (Participative). It is also known as participative leadership. It
is the most effective leadership style. Democratic leaders offer guidance to group
members, but they also participate in the group and allow input from other group
members. Participative leaders encourage group members to participate, but retain the 01 mark
final say over the decision- making process. Group members feel engaged in the For
process and are more motivated and creative. Features of Democratic Leadership are: concept
29
(a) Encourages staff to be a part of the decision making. 03 marks
(b) Keeps staff informed about everything that affects their work, shares decision For
making and problem solving responsibilities. features
(c) The democratic leader develops plans to help staff evaluate their own performance.
They allows staff to establish goals. They encourages staff to grow on the job
and be promoted.
ROI = (4,00,000/10,0000)*100 = 40%
EBIT after expansion = 15,00,00 * 40% = Rs. 6,00,000
Calculation of EPS
Plant 1 Plan 2
EBIT 6,00,000 6,00,000 04
(-) Interest - 50,000 Marks
30 IBIT 6,00,000 5,50,000 correct
(-) Tax @50% 3,00,000 2,75,000 calculatio
EAT 3,00,000 2,75,000 ns
No of shares 15,000 10,000
EPS 20/- 27.5/-
The company should use plan 2 in order to increase the return to the equity
shareholders.
1. (a) Stability of Tenure of personnel: - It refers to no frequent termination and transfer.
03 mars
Employees should not be moved from their positions frequently; they should be given
For
reasonable time to show results. Employee turnover should be minimized.
Principle
(b) Unity of command:-An employee should receive orders / instructions from one and
03
only one boss/ superior and should be accountable to one superior only from whom
31 Marks
they received the task. Dual subordination should be avoided.
A For
(c) Subordination of individual interests to general interest. Reconciliation of goals of
Method
individuals with those of the organisation helps to perform effectively as a team and
And
achieve its goals. The sacrifice of personal interest in favor of organizational interest
Motion
provides an automatic lubricant to the working of an organisation and helps to move it
studies
smoothly in a positive approach and direction.
2. (a) Method study: The objective of method study is to find out one best way of doing
the job. There are various methods of doing the job.
(b) Motion study: Motion study refers to the study of movements like lifting, putting
objects, sitting and changing positions etc., which are undertaken while doing a typical
job. Unnecessary movements are sought to be eliminated so that it takes less time to
complete the job efficiently.
1. (a)Provides managers with useful insights into reality: - The knowledge of principles
improves the understanding of managers about the ways and means of managing an
organisation. Management principles are helpful in taking decisions and handling
situations arising in course of management.
(b)Optimum utilization of resources and effective administration: - Resources should
be put to use in such a manner that they should give maximum benefit with minimum
cost. Principles equip the managers to foresee the cause-and-effect relationships of their
decisions and actions. As such wastages associated with a trial-and-error approach
can be overcome.
(c)Scientific decisions: - Management principles help in thoughtful decision-making.
They emphasize logic rather than blind faith. Management decisions taken on the basis 03 marks
of principles are free from bias and prejudice. They are based on the objective For
assessment of the situation. Significa
31 2. nce
B Basis of distinction Henry Fayol F. W. Taylor 03
Perspective Top level of Management Shop floor level of a factory. For
Unity of Command Staunch Proponent Did not feel that it is important as differenc
under functional foremanship a es
worker receives orders from 8
specialists.
Applicability Applicable Universally Applicable to specialized
situations
Basis of formation Personal experience Observation and experimentation
Focus Improving overall Increasing productivity
administration
Personality Practitioner Scientist
expression General theory of Scientific management
administration.
Ans. (i) The function of management which is discussed in the above case is 'Planning.
Planning is deciding in advance what to do and how to do. It is one of the basic
managerial functions. Before doing something, the manager must formulate an idea of
how to work on a particular task. Thus, planning is closely connected with creativity
and innovation. But the manager would first have to set objectives, only then will a
manager know where he has to go. Planning seeks to bridge the gap between where we
For name
are and where we want to go. Planning is what managers at all levels do. It requires
of the
32 taking decisions since it involves making a choice from alternative courses of action.
function
A (ii) The various limitations of planning highlighted above are
01 mark
1. Leads to Rigidity: - Managers have to work according to pre-decided plan they may
05
not be in a position to change it.
For its
2. Involves Huge Cost: - Planning includes expenses for collection of information,
limitation
salary of specialists for analysis, paper work, board meeting etc.
s
3. Reduces Creativity: - Middle management and other decision makers are neither
allowed to deviate from plans nor are they permitted to act on their own. It reduces
their creativity.
4. Does Not Work in Dynamic Environment: Business environment changes very
frequently. It becomes difficult to accurately assess future trends in the environment
5. Does Not Guarantee of Success: - Generally, manager relies on previous successful
plans. Such type of planning may not give success.
6. Time Consuming Process: - Conducting meetings and discussions for preparing
plans takes a lot of time
1. Planning provides directions: - By stating in advance how work is to be done
planning provides direction for action.
2. Planning reduces the risks of uncertainty: - By deciding in advance, the tasks to be
performed, planning shows the way to deal with changes and uncertain events.
3. Planning reduces overlapping and wasteful activities: - In Planning the work of each Each
person and department is clearly decided. It helps in avoiding confusion and Point
32
misunderstanding. Carries
B
4. Planning promotes innovative ideas: - During discussions for planning, new ideas 01
may be presented by managers/individuals. mark
5. Planning facilitates decision making: - During planning the manager has to evaluate
each alternative. This helps them in taking decision for selection of best alternative.
6. Planning establishes standards for controlling: - Planning provides the goals or
standards against which actual performance is measured for controlling.
(i) Labeling
(ii) Functions of labeling
1. Describes the product and specify its contents: - Labeling specifies the contents and
other features of the product. It enables the manufacturer to give clear instructions to
the consumer about the proper use of the product. 01 mark
2. Identification of the product or brand: - It gives a definite identity to the product or For
brand and therefore, the identification of a product becomes easy, e.g. the name Pears aspect
printed on toilet soaps helps us to know which soap out of several soaps is Pears. Which
33 3. Grading products: - It enables the manufacturer to grade the product into different Was
categories, e.g. Hindustan Lever sells different grades of tea under green, yellow and neglected
red labels. and 05
4. Helps in promotion of products: - Packaging simplifies the work of sales promotion. marks
Packing material in the house reminds the consumers constantly about the product. functions
5. Providing information required by Law: - Another important function of labeling is
to provide information required by law. For example, the statutory warning on the
package of Cigaretteor Pan Masala, Smoking is injurious to Health` or Chewing
Tobacco is injurious to Health.
Basis of distinction
Formal organisation Informal organisation
Meaning It is a system of well- It is a network of and personal
defined jobs, each social relationships, not
bearing a definite established by formal
measure of authority, organisation, but arising
responsibility a n d spontaneously as people
accountability. associate with one another.
Each
Origin It as originates result of a It originates as a result of
Differenc
company's rules and interaction among people at work
e
34 policies.
Carries
Authority It arises by virtue of It arises out of personal qualities
01
position in the of individuals.
mark
management.
Behaviour Behaviour is guided by Behaviour is not guided by any
rules and policies rules. It has no set pattern
Flow of Communication takes It can take place in any direction
communication place through scalar
chain.
Nature It is rigid in nature It is flexible in nature
Leadership Managers are leaders Leaders are chosen by the group
1 (c) Top Level 1

2 (b) Management creates a dynamic organisation. 1
3 (a) Political 1
4 (d) Helps to identify opportunity and getting first mover advantage 1
5 (d) All of the above 1
6 (c) Customers 1
7 (a) Unity of Command 1
8 (a) Ram is accountable 1
9 (d) Establishing reporting relationship 1
10 (a) Critical Point Control 1
11 (a) (ii), (iv), (i), (v), (iii) 1
12 (a) (ii) ,(iii), (i) 1
13 (c) 1992 1
14 (c) Both the statements are true. 1
15 (c) Promotion of fair trade practices 1
16 (b) Exceeds ₹ 1 crore but does not exceed ₹ 10 crore. 1
17 (c) It is a personal form of promotion. 1
18. a) Labelling 1
19 (d) societal marketing concept 1
20 (a) Inelastic. 1
21 Top level management
The following are two functions of the top level management:
(i) To coordinate the activities of different departments according to the overall activities of the
organisation. 1 + 1*2
(ii) To formulate overall organisational goals and strategies for their achievement.
22 (i) Internship (ii) Vestibule School (iii) Apprenticeship 1*3
23 Yes, we agree that controlling is an indispensable function of management. Importance of

controlling-
(i) Accomplishes organisational goals-The controlling function measures progress towards the
organisational goals and brings to light the deviations, if any, and indicates corrective actions.1 .5*2=3
(ii) Judges accuracy of standards-A good control system enables management to verify whether the
standards set are accurate, reasonable and objective.
Or
.(i) Measuring of Actual performance-Performance should be measured in an objective and reliable manner.
There are several techniques for measurement of performance. Wherever possible measurement of work
should be done during the performance.
(ii) Comparing actual performance with standards-This step involves comparison of the actual performance
with the standard performance. Such comparison will reveal the deviation between the actual and the desired
results. Comparison becomes easier when standards are set in quantitative terms.
24. Following are three protective functions of SEBI.
(a) Prohibiting of Fraudulent and unfair trading practices like price rigging and manipulation.
(b) Controlling insider trading and imposing penalties.
(c) Undertaking steps for investors' protection.
Or 1*3
(a) Liquidity
(b) Pricing of Securities
(c) Mobilization of savings
25. Merits of external sources of recruitment

1. qualified personnel
2. wider choice
3. fresh talent
4. competitive spirit 1*4
26. (a) Two communication barriers are:

(i) Organisational Barrier (Organisational Policy)
(ii) Psychological Barrier (Distrust)
(b) One Organisational Barrier: Rigid Rules and regulations.
One Psychological barrier: Premature evaluation i.e. evaluating the meaning of the message before the
completion of the message may lead to prejudices against communication.
27. Non Financial Incentives are:

1. Status
2. Organsatonal Climate
3. Career Advancement Opportunity
4. Job Enrichment (Or any other)
OR
Two marks for every correct Leadership Styles (2+2)
28. The factors which will help Ankit, in taking the dividend decision are described below:
(a) Earnings: Since the dividends are paid out of current and past earnings, there is a direct relationship
between the amount of earnings of the company and the rate at which it declares dividend. If the earnings of
the company are high, it may declare a higher dividend or vice-versa.2+2
(b) Cash flow position: Since the dividends are paid in cash, if the cash flow position of the company is
good it may declare higher dividend or
vice-versa.
(c) Access to capital market: If the company enjoys an easy access to capital market because of its credit
worthiness. It does not feel the need to depend entirely on retained earnings to meet its financial needs. Hence,
it may declare higher dividend or vice-versa.
(d) Growth prospects: If the company has any forthcoming investment opportunities, it may like to retain
profits to finance its expansion projects.
This is because retained profits is considered to be the cheapest source of
finance as it doesn't involve any explicit costs. Hence, it may declare lower dividend or vice-versa.
(e) Preferences of the shareholders: The companies paying stable dividends are always preferred by small
investors primarily if they want
regular income in the form of 'stable returns' from their investments. Large shareholders may be willing to
forgo their present dividend in pursuit of
higher profits in future. Therefore, the preferences of the shareholders must be taken into consideration.
(a) Financial management the financial concept being discussed above which has a direct bearing on the
financial health of a business.
Financial Management is concerned with optimal procurement as well as usage of finance.
(b) Balance Sheet and Profit and Loss Account are the two financial statements which reflect the financial
health of a business.
(c) The key objective of financial management is to maximise shareholder's wealth by maximizing the
market price of a company's shares.
29
3+1
30 Consumer responsibilities, which have been discharged by Suman besides asking for a cash memo:
(i) Knowledge about Market: She was aware about various goods and services available in the
market and made an intelligent and wise choice.2+2
(ii) Quality Conscious: She bought standardised product as standardistion provides quality assurance.
(b) Rights discussed in the above case are:
(i) Right to Choose.
(ii) Right to Safety.
31 Two marks for every correct principles (2+2+2) 6

32 (a) Planning is the function of management which is being described in the6
above paragraph.
(b) The various steps involved in the planning process are explained below:
(i) Setting objectives: The planning process is initiated by setting the objectives in clear, specific and
measurable terms. The objectives may be set for the organization as a whole and for each department or unit
within the
organization.
"The company plans to increase the sale of its sedan cars by 20% in next quarter."
(ii) Developing Premises: Planning process is carried out keeping in view
the assumptions related to the future, which is uncertain. These assumptions are called premises and may relate
to government policy, interest rate, inflation, etc. Accurate forecasts are therefore essential for successful
planning.
"In order to achieve the desired target the marketing team of the company considers the impact of policy of
the government towards diesel vehicles and level of competition in this segment of cars."
(iii) Identifying alternative courses of action: The next step in the planning process involves identification
of the various ways in which the goals can be achieved.
"They explore the various available options like offering more discount to dealers and customers, providing
more customer friendly finance options, lucky draws on test drives, increasing advertising, offering more of
free accessories on the purchase of the car, etc."
(iv) Evaluating alternative courses: In order to select the best option, the
relative positive and negative aspects of each alternative should be evaluated in the light of their feasibility
and consequences.
"A thorough analysis of the various available options is done keeping in view the relative viability of each
option."
(v) Selecting an alternative: The best plan is adopted to achieve desired goals. Sometimes, a combination
of plans may be selected instead of one best course of action.
The company decides to pursue the option of offering more discount to dealers and customers in order to
boost the sale of sedan cars."
(vi) Implement the plan: This step is concerned with putting plans into action.
In order to implement the plan, they determine the various discount packages and communicate the same to
their product dealers. To make the prospective consumers aware about the new available benefits,
advertisements are made through various sources of print and electronic
media."
(vii) Follow up action: Monitoring of plans is equally important to ensure that objectives are achieved
efficiently and effectively.
The market analysts of the company keep a close watch on the revenue from the sedan cars to study the effect
of new initiatives by the company to promote its sales."
Or
The features of planning highlighted in the above paragraph are explained below:
(a) Planning is a primary function: Planning precedes all the functions of management i.e. organizing,
staffing, directing and controlling. This refers to primacy of planning Planning provides the basis of all other
functions.
without good planning he will not be able to organise, direct, control or performany of the other managerial
functions efficiently and effectively.”
(b) Planning is futuristic: Planning is called a forward looking function as it enables all organization to
meet future events effectively.
"Only on the basis of sales forecasting, he would assist in the
preparation of the annual plans for its production and sales."
(c) Planning is continuous: Plans need to be continuously made, implemented and followed by another
plan and so on till an organization exists
"Besides, he will have to prepare sales plans regularly on weekly, monthly, quarterly and half yearly basis."
(d) Planning is a mental exercise: Planning is done on the basis of rational thinking involving foresight,
visualization and issued judgement rather than wishful thinking or guess work.
"While preparing the sales forecasts, he undertakes intellectual thinking
involving foresight, visualisation and issued judgement rather than wishful thinking or guess work."
(e) Planning focuses on achieving objectives: Planning is a purposeful activity as it contributes to the
achievement of predetermined goals of the organisation both efficiently and effectively.
"Most importantly, all these planning activities will be meaningful only if they will coincide with the purpose
for which the business is being carried out."
33 (i) Delegation of authority is the concept used by Aman Chadha in the above case which helped him
in focusing on objectives.
Delegation of authority is the process of granting of authority to the subordinates to operate within prescribed
limits.
(ii) The four points of importance of delegation of authority are described below:
(a) Effective management: It helps the managers to function more efficiently as they get more time to
concentrate on important matters. Freedom from doing routine work provides them with opportunities to excel
in new areas.
(b) Employee development: By empowering the employees, they are given more opportunities to utilise
their talent and this may help them to become better leaders and decision makers in future.
(c) Motivation of employees: Delegation also has psychological benefits as helps in building the self-
esteem of an employee and improves his
confidence and work performance. When a superior entrusts a subordinate with a task, it is not merely the
sharing of work but involves trust on the superior's part and commitment on the part of the subordinate. Thus,
delegation may give rise to latent abilities in the subordinates.
(d) Facilitation of growth: With the increase in the competence of the employees, an organisation tends to
gain in many ways. The growth and expansion of the firm becomes easy as the capable workforce is ready to
take greater responsibilities.2+4
34 Price refers to amount of money, which a customer has to pay to buy a product.
Factors Affecting Price Determination: Factors considered while fixing price of a product are:
1. Product Cost
2. Utility and demand of the product
3. Extent of Competition in the Market
4. Government and Legal Regulations
5. Pricing Objectives
6. Marketing Methods Used (Any four)
Question
No Answer Marks to be allotted Remarks
1 b Full marks for each

correct answer
2 c Full marks for each
correct answer
correct answer
4 b Full marks for each
correct answer
correct answer
6 a Full marks for each
correct answer
7 ii Full marks for each
correct answer
correct answer
Or correct answer
D
10 III Full marks for each
Or correct answer
C
correct answer
12 A Full marks for each
correct answer
correct answer
14 C Full marks for each
correct answer
15 B Full marks for each
correct answer
correct answer
correct answer
correct answer
correct answer
correct answer
21 Restricted entry,code of coducts and service motive Full marks for correct
answer .step marking
partially correct answer
22 (1) Recruitment, i.e., searching for qualified people. Full marks for correct
(2) Analyzing job, collecting information about jobs to answer .step marking
prepare jobdescriptions. partially correct answer
(3) Developing compensation and incentive plans.
(4) Training and development of employees for efficient
performance and career growth.
Or
(a) Staffing.
(b) Recruitment. It is defined as the process of
researching for prospective employees and stimulating
them to apply for jobs in the organisation.
23 a.controlling Full marks for correct

b. setting performance standards,measurement of actual answer .step marking
performance and comparing actual performance with partially correct answer
standards
24 SEBI Full marks for correct
Protecting the interest of investors, ensuring transparency answer .step marking
,stopping insider trading partially correct answer
Or
• Money markets involve short-term lending that
borrowers can tap into for cash for day-to-day
operations
• Capital markets are geared toward long-term
investing.
• Money markets are less risky than capital markets,
which can be more rewarding.
• Both markets are subject to comprehensive
regulation to ensure transparency, fairness, and
stability.
25 i.external recruitment Full marks for correct

ii. intelligence test answer .step marking
iii. employment interview partially correct answer
iv. vestibule training
OR
i. Apprentice program
ii. Internship training
26 People ‘s behaviour is besed on their needs Full marks for correct
Other assumptions-priority of need important,people move answer .step marking
to next higher need partially correct answer
Lower need no longer satisfies
Or
Ans Democratic style of leadership is being adopted by
Umang Gupta.
27 Importance of directing- Full marks for correct
i. Initiating action answer .step marking
ii. Integrating eployees efforts partially correct answer
iii. Guiding employees
iv. Facilitating necessary changes
28 EPS- I-14,II-15.56,III-37.1 Full marks for correct

i. Alternative III answer .step marking
ii. No. it will not rise always .condition for rising partially correct answer
EPS is ROI>Int. on debt
29 Factors of dividend decision- Full marks for correct
i. Amount of earnings answer .step marking
ii. Stabilitiy of earnings partially correct answer
iii. Growth prospects
iv. Shareholders preferences
v. Access to capital market
30 Right to safety-consumer should be against goods and Full marks for correct
services which are hazardous to life answer .step marking
Right to be heard-by filing complaints if defects found. partially correct answer
31 (a) Development of each and every person to his or her Full marks for correct
greatest efficiency and ability. Taylor emphasized that to answer .step marking
attain efficiency, steps should be taken right from the partially correct answer
process of selection of employees. Employees should be
scientifically selected. Efficient employees produce more to
earn more.
(b) Science not rule of thumb
(c) employees achieving standard works and more are
given higher salary , else given less salary.
32 a. Planning provides directions Full marks for correct

b. Planning reduces overlapping and wasteful answer .step marking
activities partially correct answer
c. Planning facilitates decision making
Or
a. Identifying alternatives and evaluating alternatives
b. Setting objectives,developingpremises,selecting
best alternative and follow up action
33 a. Divisional structure. Full marks for correct
b. Adv: easy identification of answer .step marking
responsibility,achievement of goal concerned partially correct answer
product, quick decision making
Disadv: duplicity of
functions,selfishattitude,difficulty in excersing
control
34 Characteristics- simple and short,easily pronounceable, Full marks for correct

suggestive,distinctive answer .step marking
partially correct answer
Or
Price
Factors-cost of production,price of competitive
firm,demand of product,govt. regulation,marketing method
used.
Q.NO. ANSWER MARKS

1 C. Supervisory or operational level. 1
2 A. Unity of Command 1
3 D. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct 1
explanation of the Assertion (A)
4 A. Both the statements are true. 1
5 B. Increase employee morale through promotions and transfers 1
6 C Legal Environment 1
7 A Electronic, Woollen garment 1
8 A. Both Assertion (A) and Reason (R) are true and Reason (R)is the correct 1
explanation of Assertion(A)
9 C. Estimating manpower requirement 1
10 D. All of the above 1
11 D A high growth company usually pays high dividends 1
12 D. All of the above 1
13 C.(a)-(iv), (b)-(i), (c)-(ii), (d)-(iii) 1
14 B. Public Relation 1
15 D Supervision 1
16 C. Right to Redressal 1
17 C. Capital Budgeting 1
18 A Has high financial risk 1
19 D All of the above 1
20 D. Statement II is true, Statement I is false. 1
21 Any two limitation of planning with explanation (1.5 each) 1.5 X2
i)Planning leads to rigidity
ii)planning may not work in a dynamic environment
iii)Planning reduces creativity
iv)Planning involves huge costs
v) Planning is a time consuming
vi) Planning does not guarantee success.
OR
Any three features of planning:
i)Planning focuses on achieving objective 1X3
ii)Primary function of Management iii) Planning is Pervasive
iv) Planning is Continuous v) Planning is Futuristic
VI) Involves decision making VII) Planning is a mental exercise.
22 Any 3 importance of Directing with proper explanation 1X3
i)Initiate action ii) Integrated employees efforts iii) Guides employees to fully
realise their potential and capabilities/Improves Efficiency
iv) Facilitates introduction of needed changes. V) Helps to bring stability and
balance in the Organisation.
OR
For correct meaning of leadership (1 mark) 1+2
leadership styles are (Any two)
1. Autocratic or Authoritarian leader
2. Democratic or Participative leader
3. Laissez faire or Free-rein leader
23 Working Capital =Current Assets-Current Liabilities 2+1
=Rs. 50,00,000-Rs. 40,00,000
=Rs. 10,00,000
To improve working capital, Bhanu can implement a just in time inventory system
to reduce inventory holding costs and optimize stock levels
24 The Technological environment: 1X3
1. Enhances customer experience through AI powered recommendations
2. Improves delivery efficiency through logistic partnership
3. Increase competitiveness through data-driven through data driven
decision-making
25 The company is fulfilling the organizational and social objectives of management. 2+2
i) Organizational objectives include survival, profit and growth.
In order to survive, XYZ Power Ltd. earns enough revenues. Company’s profits
are sufficient to cover the costs and the risks. Since demand for lanterns was
increasing day by day and so the company decided to increase production to
generate higher sales, it implies that the company exploits fully its growth
potential.
ii)Social objectives involve the creation of benefits for the society. The company
decided to employ people from the nearby villages as very few job opportunities
were available in that area. It also decided to open schools and crèches for the
children of its employees.”
Providing employment opportunities in rural areas, concern for the environment,
Socially responsible behaviour etc.
26 Internal sources of recruitment are better than external sources in the following 4
ways: (any four)
i) Economical sources iv) Simplifies the process of selection
ii) Sense of Security v) Motivates employees
iii) No problem in adjustment
OR
Vestibule Training: Off the job method, employees learn their jobs on the
equipment they will be using viz. dummy or duplicate model, suitable for
sophisticated machinery and equipment.
Apprenticeship Training: On the job method, trainee under the guidance of a
master worker, design to acquire a higher level of skilled job, suitable for
plumbers, electricians, iron workers.
27 The changes introduced by ABC Infosys address Rahul’s need as follows: 1X4
1. Physiological Needs: On-site childcare facilities ensure Rahul’s basic
needs are met.
2. Safety Needs: Flexible working hours provide job security and stability.
3. Social Needs: Recognition and rewards satisfy Rahul’s desire for social
recognition.
4. Esteem Needs: Opportunities for growth and development boost Rahul’s
self-esteem.
28 The last two steps in the process of controlling are: (2 marks each for proper 2+2
explanation.)
1. Analysing deviation and
2. Taking corrective action
OR
Importance of controlling are: (Any four) 1x4
i) Accomplishing organisational goals
ii) Judging accuracy of standards
iii) Making efficient use of resources
iv) Improving employee motivation
v) Ensuring order and discipline
vi) Facilitating coordination in action.
29 The type of plan being implemented by ABC Ltd. is a Strategic Plan (For 1+3
identification 1 mark)
Any 3 characteristics (3 Marks)
1. Long term focus (two years)
2. Aims to achieve a specific objective (market share expansion)
3. Involves diversification and expansion of business operation.
4. Requires significant resources and investment.
30 Basis Product Production

a) Starting point Factory Factory
b) Main focus Quality performance Quantity of product
and features of
product
iii)Means Product Availability and
improvements affordability of
product
iv)Ends Product through Profit through
product quality volume of production
31 Any four Functions of Stock Exchange with proper explanation (1.5 marks each) 1.5x4=6
1. Providing Liquidity and Marketability
2. Pricing Securities
3. Safety of Transaction
4. Contributes to Economic Growth
5. Spreading of Equity Cult
6 Providing Scope
32 Importance of Delegation: (Any two with explanation) 2+2+2=6
1. Efficient use of manager's time

2. Employee development and empowerment
3. Improved decision-making
4. Enhanced accountability
Benefits: (Any two with explanation)

1. Increased productivity
2. Better decision-making
3. Employee motivation
Limitations: (Any two with explanation)

1. Dependence on subordinate's capability
2. Loss of control
3. Potential for misuse of authority
OR
Basis Formal Organization Informal
Organization
Meaning Structured and defined Unstructured and
relationships undefined
relationships
Nature Planned and Spontaneous and
deliberate/Rigid unplanned/Flexible
Origin Created by management Emerges naturally
among employees
Behaviour Guided by rules and Influenced by social
procedures relationships
Authority Derived from position and Based on personal
hierarchy charisma and
influence
Flow of Follows official Through grapevine
Communication channels/scalar chain and social
networks/in any
direction
33 Principle of management: 6
1. Initiative
Line quoted: All the employees are free ……… best suggestion will be
awarded a prize
Explanation:
a. Workers should be encouraged to develop and carry out their plans for
improvements according to Fayol. Initiative means taking the first step with self-
motivation.
b. Initiative ‘means eagerness to initiate action without being asked to do so.
According to Fayol, employees should be allowed to think and execute plans, to
bring about improvements in work related matters.
c. However initiative does not imply freedom to do whatever people like. They
must observe discipline. So once the decisions are taken by management, every
employee must follow it whether it is according to his suggestions or not.
2. Esprit De Corps
Line quoted: In addition, he advised …….. each other’s work
Explanation: a. Espirit de corps ‘means unity is strength‘.

b. Fayol emphasized on team work and harmony among employees. He suggested
that every employee in the organization must consider himself as a part or member
of a team and try to achieve the team goal.
c. A manger should replace’ I ‘with ‘we’ in organizational communication.
34 FEATURES OF MARKETING 1.5x4=6
Need and want: A need is state of deprivation i.e., lack of something say when we
feel hungry food becomes our Need. A Want is culturally defined object which
satisfies the Need. Like, need for food can be satisfied by Roti or Rice depending
upon culture, mood etc. The job of a marketer is to identify the need and develop
products to satisfy the need of the customer.
Creating a market offering: it means offering a product or service by specifying its
features, shape, size, colours etc.
Customer value: it means adding the value to the product to satisfy the need of the
consumer. Like, adding new pocket to carry a bottle in a design of school bag.
Exchange mechanism: The process of marketing involves exchange of products
and services for money or money’s worth.
It has four dimensions.
A) presence of at-least two parties.
B) both parties must have something viewed valuable by each other.
C) both parties are free to accept or reject the offer.
D) each party feels desirable to deal with the other.
OR
PROMOTION is concerned with activities that are undertaken to communicate
with customers & distribution channels to enhance the sales of the firm.
Promotion Mix: - Promotional techniques are used to create product awareness
amongst the potential target customers and persuade them to purchase the product.
Like- advertising, personal selling, publicity and sales promotion etc.
Elements of Promotion Mix-
1-Advertising,
2-Personal Selling,
3- Sales Promotion and,
4-Public relations.
ANSWER KEY – SQP -5
1. (c) Continuous process
Explanation: Continuous process
2. (c) Existing physical shares cannot be converted into electronic form
Explanation: Dematerialization includes conversion of physical share into electronic form.
3. (c) Planning leads to rigidity
Explanation: Planning leads to rigidity
4. (a) only i
Explanation: Dividends are corporate earnings that companies pass on to their shareholders. Paying
Dividends sends a message about a company's future prospects and good performance.
5. (b) Planning
Explanation: Planning based on facts makes controlling easier and effective. Controlling improves future
planning by providing information derived from past experience. Planning and Controlling are both backward
looking as well as a forward looking function.
6. (a) Scalar Chain
Explanation: Scalar Chain
7. (c) Creates and Exchange
Explanation: Financial market Creates and Exchange financial assets
8. (b) Apprenticeship Training
Explanation: Apprenticeship Training designed to acquire higher level of skill
9. (b) Facilitates price discovery for securities of company.
Explanation: The main objective of financial management is to maximize the wealth of shareholders. This
include a proper estimation of the funds required for different purposes such as for the purchase of long term
assets or to meet day-to-day expenses of business, etc.
10. (a) Both A and R are true and R is the correct explanation of A.
Explanation: The organising function begins with the division of total work into smaller units. Each unit of
total work is called a job. The division of work into smaller jobs leads to specialization because jobs are
assigned to individuals according to their qualifications and capabilities.
11.(d) Provides liquidity and marketability to new securities
Explanation: Provides liquidity and marketability to new securities
12. (b) Control
Explanation: Control
13. (b) Both the Statements I and II are not correct.
Explanation: Both the Statements I and II are not correct.
14. (a) Planning provides direction.
Explanation: Planning provides direction.
15. (c) Retained earning
Explanation: Retained earnings are a part of the profit which is not distributed among shareholders as
dividends but is retained in the business for future use. It is also known as self-financing. It is available free
of cost for the business.
16. (d) Both the Statements I and II are correct.
Explanation: Both the Statements I and II are correct.
17. (d) Setting objectives
Explanation: Setting objectives
18. (b) (a) - (ii), (b) - (i), (c) - (iii)
Explanation: (a) - (ii), (b) - (i), (c) - (iii)
19. (d) Less
Explanation: Less
20. (c) Comparison of actual performance with standards
Explanation: Comparison of actual performance with standards
21. The functions of management discussed above are Staffing (The company has recently given jobs to two
employees) and Controlling (Deviations are being discussed above). The concept of management which is
missing in the above case is coordination. The process by which a manager synchronises the activities of dif
erent departments is known as coordination. There is lack of coordination in staffing (they see a mismatch in
the salaries and the efficiencies of the employees in the company) and controlling (no effort is being made
to track the performance of the company to minimize the gaps).
22. Features of motivation:
i. Motivation is an internal feeling. The urge, drives, desires, aspirations, striving or needs of human being,
which are internal, influence human behaviour. For example, people may have the urge or desire for
possessing a motorbike, comfortable house, reputation in the society. These urges are internal to an
individual.
ii. Motivation produces goal directed behaviour. For example, the promotion in the job may be given to
employee with the objective of improving his performance. If the employee is interested in promotion, it
helps to produce behaviour to improve performance.
(OR )
Employee recognition is an element of Non Financial Incentives. Recognition means acknowledgement with
a show of appreciation. When such appreciation is given to the work performed by employees, they feel
motivated to perform at higher level. Example: congratulating the employee for good performance.
23. i. Seasonal Factors: Most business have some seasonality in their operations. In peak season, because of
higher level of activity, larger amount of working capital is required. As against this, the level of activity as
well as the requirement for working capital will be lower during the lean season.
ii. Production Cycle: Production cycle is the time span between the receipt of raw material and their
conversion into finished goods. Some businesses have a longer production cycle while some have a shorter
one. Duration and the length of production cycle, affects the amount of funds required for raw materials and
expenses. Consequently, working capital requirement is higher in firms with longer processing cycle and
lower in firms with shorter processing cycle.
iii. Operating Efficiency: Firms manage their operations with varied degrees of efficiency. For example, a firm
managing its raw materials efficiently may be able to manage with a smaller balance. This is reflected in a
higher inventory turnover ratio. Similarly, a better debtor’s turnover ratio may be achieved reducing the
amount tied up in receivables. Better sales effort may reduce the average time for which finished goods
inventory is held. Such efficiencies may reduce the level of raw materials, finished goods and debtors resulting
in lower requirement of working capital.
24. A consumer must also be responsible while purchasing, using, consuming goods and services. This is one
of the ways in which consumer protection can be strengthened. The responsibilities of a consumer are as
follows:
i. The consumer must have knowledge about the products available in the market so that a wise choice can
be made.
ii. They must buy only standardized goods as they provide quality assurance. Hence, they must look for
certification marks like ISI mark for electrical goods, FPO mark on food products, Hallmark on jewellery, etc.
iii. They should learn about the risks associated with products and services.
(OR )
a. Discontinuance of unfair practice of adulteration.
b. Compensation for the loss or injury she has suffered due to dairy products.
c. Replacement of desi ghee.
d. Refund of price.
25.The steps involved in the "planning process" are as follows:
1. Establishing objectives: Objectives are those endpoints for whose attainment all the activities are
undertaken. These should be realistic, specific and clear so as to specify what is to be accomplished by the
network of policies, procedures, strategies, rules, and programmes. Thus, the first step in the planning
process is defining objectives.
2. Developing premises: Planning premises are the anticipated environments in which plans are expected to
operate. They include assumptions or forecasts of the future and known conditions that will affect the
operation of the plans. They provide useful facts and information and facilitate the work of planning.
3. Identifying the alternative courses of action: The next step in the planning process is to identify the various
alternatives available to achieve the objectives. Most of the times identifying the various alternatives is a
difficult task and it depends upon the creativity and logical thinking of the planner which opens up different
avenues for the firm.
4. Evaluating the alternatives courses of action: At this stage, it is seen as to what extent a particular course
can help in the attainment of the objectives. Each and every alternative has its own pros and cons. Every
alternative is evaluated with its merits and demerits in the light of the objectives to be achieved and their
feasibility is judged accordingly.
(OR )
Planning precedes the execution of all other managerial functions. After plans are made, other managerial
functions like organizing, staffing, directing and controlling are performed within the framework of such
plans. That is why; planning is the primary function of management as it is the base for all other functions.
26. Controlling assures that organization's resources are utilized effectively and efficiently, controlling also
assures that the activities of the organization are performed as per the plans. Importances of controlling
functions are:
i. Accomplishing Organizational goals: Controlling function measures progress towards organizational goals.
The controlling function measures performance towards the organizational goals and brings to light the
deviations, if any, and indicates corrective action.
ii. Judging accuracy of standards: A good control system enables to set accurate standards. While performing
the function of controlling, a management should have a good control system which enables management
to verify whether the standards set are accurate and objective.
iii. Making efficient use of resources: A manager seeks to reduce the wastage of the resources used by
exercising controlling functions. Controlling makes it possible to use human and physical resources efficiently.
Under controlling, it is ensured that no employee can delays his work performance.
(OR)
Relationship between planning and controlling
i. Controlling takes place on the basis of standards developed by planning. all work done through the
planning and evaluation done after the controlling.
ii. Planning without controlling is meaningless as controlling ensures that the events works according to the
plans.
iii. Planning prescribes an appropriate course of action for achieving objectives whereas controlling evaluates
whether decisions have been translated into desired actions.
iv. Planning and controlling are both forward looking as well as looking back.
27. The principle violated in this case is “Unity of Command”. Salesman must get command from one boss
but he is getting command from two bosses at the same time. The consequence of violating this principle can
be :
i. The salesman will remain confused regarding whose orders to be followed in particular.
ii. There may be a clash of egos of the superiors which may lead to an unhealthy environment in the
organization.
iii. The salesman will have an option for excuses and may become a work shirker.
iv. Discipline and order is disturbed due to the work-shirking approach of the salesman.
28. Autocratic: Under this style, all decision-making power is vested in the leader and he exercises complete
control over his subordinates. Autocratic leaders typically make choices based on their ideas and judgments
and rarely accept advice from followers.
Democratic: The democratic management style involves managers reaching decisions with the input of the
employees but being responsible for making the final decision.
29. The primary market is a market which deals with new securities being issued for the first time. Initial
public offer means the first public offering of securities of a company which is followed by a listing of its shares
on the stock market. The initial public offer is the first issue of securities to the public. Under this method,
the company wanting to raise capital issues a prospectus to attract the investors.
SEBI registered brokers have to be appointed for the purpose of accepting applications and placing
orders with the company. The issuer company also appoints a registrar to the issue having connectivity with
the exchange. The lead manager coordinates all the activities amongst intermediaries to connect with the
issue.
30. A consumer is the one who assumes to be treated like a King as they bring business to the seller. Previously
“consumer was asked to beware” but these days fingers have been pointed to seller “let seller be beware” as
due to policies introduced, government laws, consumer protection, NGO and the increased competition in
the market. Consumer Protection is a term given to a practice wherein we need to protect the consumer
from the unfair practice, educating them about their rights and responsibilities and also redressing their
grievances. In simple words, it refers to protect the consumers against the unfair practices of the producers
and sellers.
Importance of Consumer Protection from the point of view of consumers: The importance of consumers’
protection from the point of view of the consumers can be made clear with the help of the following points:
i. Consumers’ Ignorance: Generally, the consumers are not aware of their rights. It is only because of this
ignorance that they cannot raise their voice against their exploitation rampart in the market. They bear this
exploitation ungrudgingly thinking it as a part of the market. Hence, they remain inactive in this respect.
Therefore, it has become necessary in public interest that they should be educated about their rights so that
they become activated.
ii. Unorganized Consumers: Consumers are unorganized and this fact alone highlights the importance of
consumers’ protection. A single consumer raising his voice against exploitation is not as effective as the voice
of an organized consumers’ body can be. So far the consumers have not shown such an attitude that they
should raise their voice in an organized manner. Consumers’ protection encourages the consumers to
organize themselves.
iii. Widespread Exploitation of Consumers: These days’ consumers are being exploited on a large scale.
Following are some of the examples of their exploitation:
a. Adulteration in consumers’ products.
b. Inferior quality of goods and services.
c. Misleading advertisement.
31. Various steps in the process of staffing are as follows
i. Estimating manpower requirements- It refers to finding out the number of persons or employees and type
of employees needed in the organisation in near future. At the time of determining the number of persons
required, the possibilities regarding internal promotions, retirements, resignations and dismissals, etc.
a. Work load analysis- Finding the number and type of employees required to perform various jobs.
b. Work force analysis- Analyzing existing work force already occupying the job positions.
c. Comparison-The manager compares the two and find out the excess of work load over work force
indicating under staffing, and thus fulfills the gap.
ii. Recruitment- It refers to the process of inducing the people to apply for the job in the organisation. After
assessing the number and type of required employees, the manager tries to get a greater number of
applicants for the job, so that the organisation can select better candidates.
iii. Selection- It refers to the choosing of most suitable candidate to fill the vacant job position. Selection is
done through a process, which involves tests, interviews, etc. It is important to keep in mind that the ability
of the applicant and the nature of work must match.
iv. Placement and orientation-Placement refers to join the post for which a person has been selected. After
this, a brief presentation about the company is given and employee is introduced to his superiors,
subordinates and colleagues and it refers to orientation.
v. Training and development- In this step, training is imparted to the selected candidate, by which he/she
can enhance his/her skills, knowledge, which increases their efficiency and effectiveness.
vi. Performance appraisal- It refers to evaluating the performance of employees against some standards
which are known to employees in advance. To judge his capability his actual work performance is compared
with the work assigned to them.
vii. Promotion and career planning- Promotions are an integral part of people's career. It means people
placed in positions of increased responsibility on the basis of their capability and it usually means more pay,
responsibility and job satisfaction.
viii. Compensation- It refers to fixing the compensation of an employee for his contribution to the
organisation. It includes pay, rewards and other incentives given to all the employees. It includes direct as
well as indirect payments. It may be of two types:
a) Direct Financial Payments- It includes wages, salaries, incentives, commissions and bonus.
b) Indirect payments-It includes insurance, medical, vacations etc.
(OR)
i. The next three steps that Harish has to follow in the staffing process after selecting the heads of different
departments are as follows:
a. Placement and Orientation: Placement refers to the process of giving the charge of the job for which they
have been appointed. Orientation may involve a series of activities related to introducing the new employee
to other employees and familiarizing him with the rules and policies of the organization. Moreover, he is
taken around the workplace and made aware of the fire safety policy, canteen, conference room, etc.
b. Training and Development: Organizations either have in-house training centers or make alliances with
training and educational institutes. This is done to ensure continuous learning of their employees and in order
to strengthen their competencies for both present and future jobs. This helps to motivate them and enables
them to perform better and contribute more towards the realization of organizational effectiveness and
efficiency.
c. Performance Appraisal: It is a process of evaluating the worth of an employee to the organization. It may
be done in both formal and informal ways. The process performance appraisal includes defining the job,
appraising performance and providing feedback.
ii. The two values that Harish wants to communicate to society by setting up this manufacturing unit are:
a. Rural development
b. Sustainable development
32. a. Here, the technique of the Mental Revolution of scientific management will be suitable for effecting
improvement in the current situation of the company because it implies changing the attitude of the workers
and the managers. Mental revolution aimed at improving the thinking of both, to create a better working
environment. The concept of the Mental Revolution enunciated on cooperation and mutual trust between
the workers and the managers.
b. Here the principle of management of ‘Subordination of Individual Interest to General Interest’ has been
ignored. This fact is evident from the following lines: “The Purchase Manager of the company was purchasing
the raw material from another company run by his own son at a price more than the market rate".
c. The following factors of Micro Environment are affecting the company: i. Customers: The customers are
unhappy with the environment of the company. Hence, they have left the company. ii. Competitor: The
Competitor Company is closing its business. It will have a positive impact on the company.
(OR)
i. Technological Environment: 'With rapid advancements in the field of replacing manual work with machines,
a robot named \Sujan has been invented and developed'. It consists of scientific improvements and
innovations which provide new ways of producing goods, rendering services, new methods and techniques
to operate a business.
ii. Social Environment: ‘However, this issue has to be carefully looked into keeping in mind the consumer
attitude towards product innovations, problem of unemployment and its impact on the quality of life'. Social
Environment consists of social forces like traditions, values, social trends, level of education, the standard of
living etc. All these forces have a vast impact on business.
iii. Legal environment: ‘Through the orders and decisions of various commissions and agencies at Centre,
State or local level the Indian Government is playing a very significant role in balancing the use of human and
machine power.' It includes various laws passed by the government, administrative orders issued by
government authorities, court judgments as well as decisions rendered by the central, state or local
governments.
33. An organizational structure defines how activities such as task allocation, coordination and supervision
are directed towards the achievement of organizational aims. It specifies the relationships between people,
work and resources. It allows correlation and coordination among human, physical and financial resources
and this enables a business enterprise to accomplish desired goals.
Basis Divisional Structure Functional Structure Divisional Structure
Formation Formation is based on functions. Formation is based specialized
divisions
Managerial Development Difficult, as each functional Easier, autonomy as well as the
manager has to report to the top chance to perform multiple
management. functions helps in managerial
development
Responsibility Difficult to fix responsibility on a Easy to fix responsibility for
particular department. performance.
Suitability More suitable for organizations More suitable for the firms having
engaged in production and several products and each
distribution of a single product or product ha distinct features.
a small number of products.
34. The four Ps are the key factors that are involved in the marketing of a good or service. They are the
product, price, place, and promotion. Often referred to as the marketing mix, the four Ps are constrained by
internal and external factors in the overall business environment, and they interact significantly with one
another. As per this question these 4 Ps i.e. product, place, price, and promotion are used by the Haryaram
to prepare its market offerings. The combination of variables used by Haryaram to prepare its market
offerings are described below:
a. Product: "Their products include chips, biscuits, sweets and squashes." A product is anything of value i.e.
a product or service offered to a market to satisfy its needs or wants. A product includes physical product,
after sale service, handling grievances etc..The type of product also partially dictates how much businesses
can charge for it, where they should place it, and how they should promote it in the marketplace. Every
marketer needs to constantly review and revise its products in order to enhance customer's satisfaction and
have a competitive edge.
b. Price: "It charges a comparatively higher price than its competitors." Price is the monetary value paid in
consideration for the purchase of a product or service by a buyer to its seller. It is a very crucial decision for
the marketers as consumers are very sensitive to the pricing. The factors affecting price determination are
the cost of the product, the utility and demand, the extent of competition in the market, government and
legal regulations, pricing objectives and marketing methods used.
c. Place: "It has five of its own retail shops."Or "It also sells its products through various grocery shops." It is
considered an important element of marketing mix because it includes all those activities that help in making
the goods and services available to the prospective buyers in the right quantity, at the right time and in the
right condition. The two main decisions involved in physical distribution are a physical movement of goods
from producers to consumers and choice of channels of distribution.
d. Promotion: "It regularly uses different communication tools to increase its sales." Promotion refers to the
set of activities undertaken by a marketer to inform the prospective buyers about the product and persuade
them to make a purchase. The various components of promotion mix are advertising, sales promotion,
personal selling and public relation."
PRACTICE QUESTION PAPER – 1

Q. QUESTION MA
NO RK
.
1 Statement I: Management is multi-dimensional. 1
Statement II: The activities involved in managing an enterprise are common to all
organisations whether economic, social or political.
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 false.
(d) Both the statements are true.
2 Scientific management refer to 1
a. Elimination of rule of thumb approach
b. Adopting hit and trial method
c. Both (a) and (b)
d. None (a) and (b
3 Which of the following indicates the importance of business environment? 1
(a) Identification of opportunity
(b) Improvement in performance
(c) Coping with rapid changes
(d) All of them
4 ‘In an organization employees are happy and satisfied, there is no chaos and the effect of 1
management is noticeable.’ Which characteristic of management is highlighted by this
statement?
a. Management is an intangible force
b. Management is a dynamic function
c. It is a continuous process
d. All of the above
5 Match the statements given on column I with the correct options given on column II 1
Column I Column II
1. One head for one plan A. Order
2. Use of ‘We’ instead of ‘I’ B. Equity
3. Similar wages for similar jobs C. Unity of direction
4. Right place for resources D. Esprit De Corps
a. 1.C, 2.D, 3.B, 4.A
b. 1 C, 2 D, 3 A, 4 B
c. 1 B, 2 C, 3 A, 4 D
d. 1.C, 2.D, 3.B, 4 A
6 “With the introduction of smartphone in the market, the demand of the key pad phone was 1
adversely affected”. Name the component of environment highlighted in the above
statement.
(a) Economic (b) Political
(c) Technological (d) All the above
7 Identify the feature of management as a science when the principles are based on cause-and- 1
effect relationship.
a) Based on practice and creativity
b) Universal validity
c) Systematised body of knowledge
d) Based on existence of theoretical knowledge
8 Assertion (A): Unity of Command is essential for effective management. 1

Reason (R): Unity of Command ensures clear communication and avoids conflicting
instructions.
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
9 The increase in the demand for many Ayurvedic medicines, Health products and services in 1
the past few months, is related to the need for building immunity and an increased awareness
for health care due to the spread of Corona virus.
Identify the feature of Business Environment being described above:
a. Specific and General forces
b. Interrelatedness
c. Relativity
10 “Management has to adapt itself according to the changing environment”. Which 1
characteristic of management is highlighted in the above statement?
a) Continuous process c) Group activity
b) Dynamic function d) Goal oriented
11 1
Identify the principle of management being highlighted in the above picture?
a. Esprit de corps
b. Discipline
c. Order
d. Unity of command
12 “If the daily wages paid by the firm to the female workers are lower than the male workers”. 1
Identify the dimension of environment being highlighted in the above statement?
(a)Social Environment
(b)Technological Environment
(c)Legal Environment
(d)Political Environment
13 “Coordination is not a separate function of management but it happens to be the final truth 1
of all functions.” In what context this observation has been made?
(a) Coordination is the essence of management
(b) Coordination is not established automatically
(c) Coordination is a continuously moving process
(d) None of these
14 "The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent 1
discount, whereas the decision to give any further discount rests with Aditi as the final
authority." Identify the principle of Management being followed here:
(a) Centralization and Decentralisation
(b) Authority and Responsibility
(c) Unity of Command
(d) Unity of Direction
15 Which of the following are the examples of Legal Environment? 1
(i)Advertisement of alcoholic beverages is prohibited
(ii) Decrease in interest rate on loans
(iii) Increase in demand for organic foods
(iv) Digi lockers for storing documents
(v) In 1993, the Supreme Court passed an order to close the iron foundries around ‘Taj Mahal'
at Agra
(a) (i) and (iv)
(b)(i) and (ii)
(c) (ii) and (iii)
(d) (i) and (v)
16 “Anyone can be called a manager irrespective of the educational qualification possessed.” 1
Identify the characteristic of the profession in that management which does not fulfil in the
statement being discussed above.
a. Ethical code of conduct
b. Professional association
c. Restricted entry
d. Service motive
17 Apart from the other suppliers in the market, his son also supplies that raw material. The 1
manager purchases the raw material from the firm of his son at a rate higher than the market
rate, which principle of management has been violated by this situation?
(a) Unity of command
(b) Unity of direction
(c) Subordinating personal interest to general interest
(d) Equity
18 Assertion (A): Government policies have a significant impact on business operations. 1
Reason (R): Government policies regulate business activities and provide incentives for
growth.
Assertion (A)
of Assertion (A)
19 Match the columns on the basis of nature of management:
Column I Column II
1) Principles are based on observation and a) Management as an art
experimentation
2) Principles are based on practice and b) Management as a profession
creativity
3) Principles are based on restricted entry c) Management as a science
A. 1(c), 2(a),3 (b) B. 1(a),2 (b),3(c)
C. 1 (c), 2(b),3(a) D. 1(b),2(c),3(a)
20 Assertion (A): The Principles of division of work leads to specialisation and increases 1
productivity.
Reason (R): Division of work ensure employees tasks on rotation basis.
Assertion (A)
of Assertion (A)
21 State any three reasons as to why proper understanding of management principles is 3
necessary?
OR
Distinguish between Unity of Command and Unity of Direction
22 State the functions of Top-level Management.
OR
Enumerate the three Organizational or Economic Objectives of Management.
23 Is Management a full-fledged profession? Explain briefly any 3 reasons to justify your 3
answer.
24 As per the directions issued by the Supreme Court, the government passed an order to ban 3
the sale of tobacco products within the area of 200 meters of all educational institutions as:
a. Its consumption is injurious to health.
b. People are becoming more conscious about health and fitness.
c. This indicates the government's attitude towards this business.
Identify the business environment under different dimensions by quoting the lines from the
above paragraph.
25 Gurpreet is running a retail mart in Varanasi to provide various types of products of daily use 4
under one roof to the buyers. The employee turnover in his business is very high and he is
perpetually on a look out for new staff. The fact of the matter is that he lacks managerial
skills and assigns work to his employees on adhoc basis without letting them settle down in
a specific work. This approach of his creates a sense of insecurity among the employees and
they tend to leave the job very quickly. However, he is a very God-fearing person and offers
fair wages to his employees so they can afford a reasonable standard of living.
i) Identify and explain the principle of management which Gurpreet is unable to apply and
is perpetually on a look out for new staff. “He is a very God-fearing person and offers fair
wages to his employees so they can afford a reasonable standard of living.”
ii) Name and explain the relevant principle of management will has been brought into effect
by Gurpreet.
26 Explain briefly any four characteristics of business environment. 4
OR
Describe briefly any four dimensions of business environment.
27 Sanjana is the branch manager of ABC Handicrafts Pvt. The company‟s objective is to 4
promote the sales of Indian handloom and handicraft products. Its sells fabrics, furnishings,
ready-mades and household items are made out of traditional Indian fabrics. Sanjana decides
quantities, variety, colour and texture of all the above items and then allocates resources for
their purchase form different suppliers. She appoints a team of designers and crafts people in
the company, who developed some prints for bed covers in bright colour on silk. Although
they looked very impressive, they were more expensive than they had planned to sell.
Average customer could not afford to buy it. Praising their effort, Sanjana suggested that they
should keep the silk bed covers for special occasions like Diwali and Christmas and offer the
cotton bed covers on a regular basis to keep costs under control. Identify the functions of
management which Sanjana performs by quoting the lines the above para.
28 “The skilful and personal application of existing knowledge to achieve desired results is 4
called art” In the light of this statement, describe whether management is an art or not.
OR
Explain any two points of importance of coordination.
29 Naman and Govind after finishing their graduation under vocational stream decided to start 2+2
their own travel agency which will book Rail Tickets and Air Tickets on commission basis. =4
They also thought of providing tickets within ten minutes through the use of internet. They
discussed the idea with their Professor Mr. Mehta who liked the idea and suggested them to
first analyse the business environment which consists of investors’, competitors and other
forces like social, political etc. that may affect their business directly or indirectly. He further
told them about the technological improvements and shifts in consumer preferences that were
taking place and hence they should be aware of the environmental trends and changes which
may hinder their business performance. He emphasised on making plans keeping in mind the
threat posed by the competitors, so that they can deal with the situation effectively. This
alignment of business operations with the business environment will result in better
performance.
i) Identify and state the component of business environment highlighted in the above Para.
ii) State any two features of business environment as discussed by Professor Mehta with
Naman and Govind.
30 Name the techniques of scientific management which separates the planning and execution 4
of work and explain briefly.
31 After winning the election, Prime minister Mr. Narender Modi launched a compaign of 6
‘Swachh Bharat’ and invited various celebrities to be a part of this Abhiyaan. This spread
awareness among the people in society and in general, people started becoming more careful
and aware about the cleanliness around their area. To continue its impact, a new service tax
for Swachh Bharat was also started. The government is planning to import new and better
technology to adopt new methods of treating the garbage and waste.
Explain the various dimensions of business environment mentioned in the above para quoting
the lines from the above para.
32 Taylor's principles of scientific management and Fayol's principles of management are 6
mutually complementary." Do you agree with this view? Give any four reasons in support of
your answer.
OR
Briefly explain work study techniques that help in developing standards to be followed
throughout the organization.
33 Roshan is desirous of setting up a small factory to manufacture different kinds of eco-friendly 6
packaging materials. He proposes to adopt to logical approach to his business rather than hit
and trial method as he knows that this can result in tremendous saving of human energy as
well as wastage of time and materials. He plans to adopt paternalistic style of management
in practice in order to avoid any kind of class-conflict that may emerge between him and the
workers. Moreover, he plans to seek the opinion of his workers before taking any important
decisions and also offers incentives to them for providing valuable suggestions for the
business.
Identify and explain the various principle of scientific management that Roshan plans to
apply in his business.
34 Explain any four importance of Management 6
Or
Explain any four characteristics of Coordination

1. Arrange the following in chronological order.
(1)Evaluating alternative courses

(2)Identifying alternative courses of action
(3)Follow-up action
(4)Setting Objectives
(5)Implementing the plan
(6)Developing Premises
. (7) Selecting an alternative
a) 4,6,2,1,7,5,3
b)3,6,7,1,2,5,4
c)1,5,2,4,7,6,3
d)4,1,5,6,7,2,3 1
2. Read the following statements of Assertion(A) and Reason® and choose the correct alternative:
Assertion(A) – Making decisions is an important component of planning.
Reason (R) – when there is just one possibility left only then planning is required.
(a) Both A and R are correct
(b) A is correct R is incorrect
(c) Both A and R are correct and R is the correct explanation of R
(d)Both A and R are correct and R is not the correct explanation of R 1
3. Deepak is striving to earn a profit of 30% in the current financial year. Identify the type of plan being
described in the above lines.
(a) Method
(b) Objective
(c) Strategy
(d) Programme 1
4. ‘Planning is an intellectual activity of thinking rather than doing’. Which feature of planning is
highlighted in this statement?
(a) Learning focuses on achieving objectives
(b)Planning is futuristic
(c )Planning involves decision making
(d)Planning is a mental exercise. 1
5. How does planning reduce the risk of uncertainty?

(a)By helping the managers to look into the future and make it choice from amongst various alternatives.
(b) By providing the goals or standards against which risk is identified.
(c )By stating in advance how work is to be done.
(d) All of these. 1
6. Due to proper organizing and division of work, a company goes for systematic assignment of jobs
among the employees, which importance of organizing is highlighted here?
(a) Benefits of specialization
(b)Clarity in working relationship.
(c )Adaptation to change.
(d)Effective administration. 1
Assertion(A) -Better control systems, such as balancing score Cards and management information systems,
are being developed. Reason® -One of the issues of decentralisation is performance Accountability.
(a) Both A and R are correct and R is the correct explanation of A
(b) Both A and R are correct 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 1
8. ‘Delegation helps in developing the talents of the employees. It also has psychological benefits.’ Which
Importance of delegation is highlighted in this statement?
a) Effective management
b)Employee development
c)Motivation of employees
d)Better coordination 1
9.“It arises from a superior– subordinate relationship because the subordinate is bound to perform the duty
assigned to him by his superior.” Which element of delegation is highlighted in this statement?
a) Authority
b) Responsibility
c) Accountability
d) All of these . 1
Assertion(A) -Specialization is encouraged by the functional structure.
Reason® -In the case of a functional structure, each department must perform a specified function.
(a) Both A and R are correct and R is the correct explanation of R
(b) Both A and R are correct and R is not the correct explanation of R
(c) A is true but R is false
(d) A is false but R is true 1
11. “Grouping of jobs of similar nature under functional and organising these major functions as separate
departments.” Which organizational structure is highlighted in this line?
a) Functional structure
b)Divisional structure
c)Both a and b
d)None of these 1
12. The level of management in the organizational structure is determined by

a) Authority
b)Responsibility
c)Span of management
d)All of these 1
13. Dietho Ltd. Specialises in the production of handicraft goods. The company’s goal is to make 250 goods
per day. To accomplish this, all departments’ efforts are coordinated and linked, and authority responsibility
relationships between various job roles are established. There is a clear understanding of who is responsible
for reporting to whom.
Identify the function of management highlighted in the above case-
(a) Planning
(b) Controlling
(c )Coordination
(d)Organising . 1
14. Asang Ltd. Is a corporation that has recently adopted a decentralised management style. The company has
developed rapidly, and lowerlevel management decisions are implemented, saving time because those making
decisions are close to taking action. However, Ms Asang chairman of Asang Ltd. Recently met with the
chairman of another manufacturing firm, who is also a good friend of Asang, and asked him how he would
measure employee performance if he went with a decentralised method. Asang’s secretary calls him a few
hours later and requests the list of works to be completed the next day. He tells him about all of the crucial
duties that need to be completed.
Which aspect of decentralisation has been emphasised in the following case?
(a) Quick decision making.
(b) Develops initiative among subordinates © Facilitates growth and expansion.
(c) Develops managerial talent for the future 1
15. Read the statement carefully:
Statement I: The span of management,to a large extent,gives shape to the organisational structure.
Statement II: Span of management determines the levels of management in the structure.
(a) Both the statements are true.
(b) Both the statements are false.
(c) Statement I is true, statement II is false.
(d) Statement II is true, statement I is false. 1

Statement I: A functional organisational Structure emphasis on specific functions.
Statement II: Such a structure enhances coordination across departments as information has to be
exchanged amongst different departments .

Statement I: Divisional structure is suitable for businesses where a large variety of products are manufactured
using same productive resources.
Statement II: It leads to a decrease in cost in the long run.
Assertion (A): Organising helps in the growth and diversification of an enterprise.
Reason(R ): It allows a business enterprise to add more job positions, departments and even diversify their
product lines.
(a)Both A and R are correct and R is the correct explanation of R
(c) Both A and R are correct and R is not the correct explanation of R
(d) A is true but R is false
(e) A is false but R is true 1
19. Match the columns and choose the correct alternative from the options given below:
Column I Column II
A. Importance of organization I. Functional and divisional
B. First step of organising process II. Benefits of specialization
C. Types of organization structure III. Formal and informal
D. Forms of organization IV. Identification and division of work
(a) A – II,B – III,C – I,D- IV.
(b) A – III,B – II,C – I,D- IV.
(c) A – IV, B – III,C – II,D- I.
(d) A – II,B – IV,C – I,D- III. 1
20. Match the various items related to organising in column I with their respective statements in column II and
choose the correct alternative:
Column I. Column II
A. Authority I. Obligation to perform an assigned task.
B. Responsibility II. Answerability for outcome of assigned tasks
C. Accountability III. Right to command.
a. A-II,B – III,C – I
b. A – I,B – III,C – II
c. A – III, B – I,C – II
d. A- III, B- II, C- I. 1
21. State the meaning Of single use plans and standing plans. 3.
22. State how planning
I) reduces creativity
II) leads to rigidity. 3
23. Leishna Business’ is a balloon manufacturing firm. With the arrival of foreign firms it is feeling the pressure
of improving its business strategy. Because of the firm’s advance planning it could not suddenly bring changes
in its plans as the whole organisation had started implementing the decided plan. But this year the organisation
wants to ensure success. However, the firm knows that the external environment is changeable and continues
to vary in a fast manner. The organisation wants to prepare in advance for a better future. It has decided to
allocate a portion of its budget specifically for proper planning as it knows there are going to be expenses like
Expert’s fee, survey charges, etc. Which limitations of planning have been identified in the above case.
3
24.Chinglen is at the real point of decision making in the course of his planning. He has arrived at this point
after identifying various alternative courses of action. After identification he was thoroughly involved in the
evaluation of each of these alternatives. He later got involved into making several permutations and
combinations of these alternatives to arrive at this point. Through which stage of the planning process is Rajesh
going? Also give the next two steps of planning process. 3
25.Two years ago, Tiya completed her degree in food technology. She worked for sometime in a company that
manufactured chutneys, pickles and murabbas. She was not happy in the company and decided to have her
own organic food processing unit for the same. She set the objectives and the targets and formulated an action
plan to achieve the same.
One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw
materials like fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating
only organic crops. She also decided to follow the steps required for marketing of the products through her
own outlets. She appointed Moses as the Production Manager who decided the exact manner in which the
production activities were to be carried out. Moses also prepared a statement showing the number of workers
that will be required in the factory throughout the year. Tiya informed Moses about her area wise sales target
for different products for the forthcoming quarter. While working on the production table, a penalty of ? 100
per day for not wearing caps, gloves and apron was announced.
Quoting lines from the above paragraph, identify and explain the different types of plans discussed.
3
26. Which type of plan is referred through each of the following statements?
(a) They are defined as ends which the management seeks to achieve by its operations.
(b) These are general statements that guide thinking or channelise energies towards a particular direction.
(c ) They provide details in the exact manner in which any work is to be performed.
4
27. Explain method and budget as types of plan. 4
28. When ananya returned to India after completing a certificate course in food quality assurance and quality
control from the Netherlands, she was convinced that she would fulfill her grandmother’s dream of converting
their 58 acre land into a fertile farm. she started by setting out specific goals and laid down related activities
to be performed to achieve the goals. soon she launched her own company food solutions Pvt ltd. she sought
to ensure that the future events effectively meet the best interests of the company .she prepared an annual
statement for production and sales based on sales forecasting she noticed that the farmers grew only Paddy
due to which land remained idle for the subsequent 8 to 9 months of the year she identified and assessed
various alternatives through which farms could be utilised for the remaining months of the year. through her
accurate vision judgement and systematic thinking based on analysis of the facts she presented its scheme to
the farmers were both paddy and vegetables could be grown. Identify and explain the features of one of the
functions of management highlighted above.
4.
29. Explain Procedure and Programme as types of plans. 4
30. Explain the following points of importance of organising function of management

(a) benefits of specialization
(b)Clarity in working relationships
(c )adaptation to change. 6.
31. How is a functional structure different from a divisional structure. 6
32.Neeru is a bright young management trainee. After six months of testing by her organisation she is given
charge of her office as an assistant manager. She starts her job with a lot of enthusiasm but realises that it won’t
be possible for her to continue without sharing her tasks. She keeps a secretary who takes orders from her.
This has reduced her burden of work and has helped her to focus on priority assignments. Which concept of
management is discussed in the above case? Name three importance of this concept. 6
33.Binit opens a retail Mart in a local market. As he knows it will be impossible for him to handle all the work
alone, so he appoints Nirja to perform routine tasks on his behalf thereby reducing his work load. As a result
of this decision. Binit is left with more time to concentrate On important matters. Besides, he recruits ten other
persons as support staff. Five years later, as his business earns a good name for itself, he opens another outlet
in the city. Considering Nirja’s competence, he gives the independent charge of running the new outlet to her.
Thereby empowering her autonomy in functioning of the outlet. In the context of the above case:
(a)Identify the two concepts which reflects the transition in the role of Nirja in the above paragraph.
(b)Give any two differences between the two concepts as identified in Part (1) of the question.
6
34. The G 20 summit was organised in India. the government left no stone unturned to make G20 summit a
success. At the higher level ,work to be performed was identified and grouped to enable people to work most
effectively together for accomplishing objectives. this involved building infrastructure, beautification of the
city, hospitality, security arrangements etc . duties were assigned to different job positions which led to
establishment of clear relationships. this helped in creating a hierarchical structure and in coordination amongst
all working for the summit.
( a) Identify and explain the function of management discussed in the paragraph above
( b )Explain any 4 points of importance of the function identified in part above.
6.

1. Identify the correct sequence of the steps involved in the selection process:
a. Medical employment, reference and background checking, selection decision, job offer examination,
contract offer
b.Reference and background checking, selection decision, contract of employment, medical
examination, job offer
c.Job offer, reference and background checking, selection decision, medical examination, contract of
employment
d.Reference and background checking, selection decision, medical examination, job offer, contract of
employment
2. Which of the following is not an external source of recruitment

(a) Campus recruitment
(b) Promotion
(c) Casual callers
(d) Direct recruitment
OR
Under this method of recruitment, a notice is placed on the notice board of the organisation containing
the details of the jobs available.
(a) Casual callers
(b) Labour contractors
(c) Recommendations of employees
(d) direct recruitment
3. Which of the following is an internal source of recruitment?

(a) Transfer
(b) Advertising on television
(c) Casual callers
(d) Labour contractors
4. Which of the following is not an advantage of using external sources of recruitment?

(a) Qualified personnel
(b) Wider choice
(c) Fresh talent
(d) Economical source
5. The purpose of ________ interview is to find out whether the applicant is physically and mentally fit for
the position.
(a) Preliminary
(b) Employment
(c) Both the above
(d) Collective (or Group)
6. It is a career oriented process.

(a) Training
(b) Development
(c) Selection
(d) Recruitment
7. It is the process of management which is concerned with obtaining, utilising and maintaining a
satisfactory and satisfied work force.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
8. Which of the following is not a type of semantic barriers?
(a) Badly expressed message
(b) Unclarified assumptions
(c) Technical jargon
(d) Premature evaluation
9. It refers to the process of instructing, guiding, counselling, motivating and leading people in the
organisation to achieve their objectives.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
10. While other functions prepare a setting for action, name the function that initiates action in the
organisation.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
11. Which of the following is not an assumption of Maslow’s theory?
(a) People’s behaviour is not based on their needs.
(b) Satisfaction of such needs influences their behaviour.
(c) A satisfied need can no longer motivate a person; only next higher level need can motivate him.
(d) A person moves to the next higher level of the hierarchy only when the lower need is satisfied.
12. Which of the following is not an example of financial incentive?

(a) Perquisites
(b) Job Enrichment
(c) Profit Sharing
(d) Co-partnership
13. Ashutosh works as a manager in Kuber Ltd. Besides the salary, the company offers him benefits such as
free housing, medical aid and education to the children, etc. Identify the type of incentive being offered
to him.
(a) Perquisites
(b) Job Enrichment
(c) Co-partnership
(d) Pay and allowances
14. On joining Kartar Ltd. as Chief Financial Officer, Madhumita was allotted 500 shares of the company.
Identify the type of incentive being described.
(a) Perquisites
(b) Retirement Benefits
(c) Co-partnership
(d) Pay and allowances
OR
On the occasion of the Founders Day of the firm, Veena was felicitated with the certificate of best
performer as a Business Development Manager. Identify the type of incentive being described in the
above lines.
(a) Career advancement opportunities
(b) Employee recognition program
(c) Organisational climate
(d) Job security
15. Ishan works as an Accounts Officer in Fabrications Limited. He also feels very proud of the fact that he
is the incharge of recreation committee in his office. Identify the type of incentive being offered to
Ishan.
(a) Career advancement opportunities
(b) Employee recognition program
(c) Organisational climate
(d) Employee participation
16. It is the process of influencing the behaviour of people by making them strive voluntarily towards
achievement of organisational goals.
(a) Supervision
(b) Communication
(c) Leadership
(d) Motivation
OR
It refers to the process of exchange of ideas, views, facts, feelings etc., between or among people to
create common understanding.
(a) Supervision
(b) Communication
(c) Motivation
(d) Leadership
17. Identify the correct sequence of steps involved in the communication process.
(a) Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
(b) Sender, Decoding, Receiver, Feedback, Message, Encoding, Media
(c) Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
(d) Sender, Media, Decoding, Receiver, Message, Encoding, Feedback
18. Identify the style of leadership in which the superior uses forces within the groups in order to establish
control.
(a) Autocratic leadership
(b) Democratic leadership
(c) Laissez-faire leadership
(d) Authoritarian leadership
19. Deviations are said to be positive in nature when

(a) Planned performance is more than the actual performance
(b) Actual performance is more than the planned performance
(c) Both planned and actual performances are same
(d) None of the above
20. This concept of Control Management is based on the belief that if you try to control everything, you
may end up controlling nothing.
(a) Critical point control
(b) Key result areas
(c) Management by exception
(d) Deviations
21. In a leading manufacturing company there was a meeting regarding theimportance of a function of
management which was very much required inmeeting the growing needs of good employees and
solving complicated issuesrelated with human behavior at the workplace. They also discussed about the
most
important resource of an organisation. (a)
Which function of management is indicatedhere in the above case?
(b) Give one advantage of this function.
(c) Which most important resource of an organisation is indicated here?
22. The workers of a factory remain idle because of lack of knowledge of hi-techmachines. Frequent visit of
engineer is made which causes high overhead charges. Suggest themethod of training that should be
given to the employees. Explain.
OR
Alpha Enterprises is a company manufacturing water geysers. The company has a

functional structure with four main functions— Production, Marketing, Finance
and Human Resource. As the demand for the product grew, the company decided
to hire more employees.
Identify the concept which will help the Human Resource Manager in deciding the
actual number of persons required in each department.
23. Raman was working in an enterpirse on daily wages basis. It was difficult for him to fulfill the basic
needs of his family. His daughter fell ill. He had no money for his daughter's treatement. To meet the
expenses of her treatement, he participated in a cycle race and won the prize money. The cycle company
offered him a permanent pensionble job which he happily accepted.
(i) Which element of directing is indicated above?
(ii) By quoting the lines from the above para ,identify the needs of Ramantaht are satisfied by the offers
of cycle company.
(iii) Also, explain two other needs of Raman followed by above that are still to be satisfied.
24. Match the columnIwith Column II:

Sl.No. Column I Sl.No. Column II
A Job enrichment i Not to feel worried on these aspects and work with
greater zeal
B Employee recognition ii Concerned with designing jobs that include higher
programme level of knowledge and skill.
C Job security iii Managers to provide opportunity to employees to
improve their skills and be promoted
D career Advancement iv It means acknowledgement with a show of
Opportunity appreciation
25. TOP Naru, Chairman of LT Group of Companies founded "TOP University" for undergraduate and
post-graduate courses in diverse disciplines. The Information and Technology Department of Company
has few vacancies. The Human Resource Department of the Company decide to hire fresh talentfor
'TOP University' for the same. Identify the type of source of recruitment and its advantages for the
company.
26. 'Moga Industries Ltd.' approached a well established university in the city of Madurai to recruit qualified
personnel for various technical and professional jobs. They selected Tanya, Ritu, Garima and Chetan for
various vacancies in the organisation.After the selection and placement, 'Moga Industries Ltd.' felt the
need to increase the skills and abilities, and the development of positive attitude of the employees to
perform their specific jobs better. The company also realised that learning new skills would improve the
job performance of the employees. Hence, the company decided to take action for the same.
(a) Name the step of the staffing process regarding which the company decided to take action.
(b) State the benefits of the action to 'Moga Industries Ltd.
27. Mrs. Rajlaxmi is working as the Human Resource Consultant in a firm that manufactures cosmetics,
which is facing a problem of high employee turnover. The CEO of the company has invited suggestion
from her for retaining the talented employees and reducing the employee turnover. Mrs. Rajlaxmi
recommends that
the good employees be rewarded in a way that it creates a feeling of ownership among the employees
and at the same time, makes them contribute towards the growth of the organisation.
(a) Identify the incentive and explain its type which has been suggested by Mrs.Rajlaxmi to the CEO of
the company.
(b) Also explain any two other incentives of the same type.
28. Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the Human Resource Manager of
Senor Enterprises Ltd. decided to leave the company. The Chief Executive Officer of the company
called Jyoti, the Human Resource Manager and requested her to fill up the vacancies before leaving the
organisation. Informing that her subordinate Miss Alka Pandit was very competent and trustworthy,
Jyoti suggested that if she could be moved up in the hierarchy, she would do the needful. The Chief
Executive Officer agreecs for the same. Miss Alka Pandit contacted Keith Recruiters who advertised for
the post of marketing head for Senor Enterprises Ltd. They were able to recruit a suitable candidate for
the company.
Raman’s vacancy was filled up by screening the database of unsolicited applications lying in the office.
(a) Name the internal/external sources of recruitment used by Senor Enterprises Ltd. to fill up the above
stated vacancies.
(b) Also state any one merit of each of the above identified source of recruitment.
29. Read the following text and answer the questions given below:
Hema is a permanent employee of a very large company called Global Pvt. Ltd. She has been working
with the company for the last 5 years and is now eligible for retirement benefits as well. She likes her
work and performs her responsibilities with due diligence. She has always displayed utmost dedication
while being at work. As per the job agreement, she had to work for 40 hours per week and was free to
work overtime. Hema worked overtime during the weekdays and on some occasions, she also used to
work on weekends for 8 to 10 hours. On account of which she fell sick and had to take leave from her
work as she got hospitalized for a fairly long period of time. The company did not show any concern
and neither did it enquire about her health. She realised that On one hand, she was able to fulfill only
some of her needs as she only had the stability of income and pension plans since she had completed 5
years already with the organization. On the other hand some other needs still remained unfulfilled which
she realized on account of the indifferent attitude of the company during her sickness. Thus, Hema felt
that though her most basic needs are being met as par the Maslow's need hierarchy ,she has a long way
to go before her highest level needs are met.
Q. 1. Which of the following need of Hema is being fulfilled:
(A) Security needs
(B) Belongingness needs
(C) Esteem needs
(D) All the above
Q. 2. Which need of Hema is not being fulfilled?
(A) Belongingness needs
(B) Esteem needs
(C) Both (A) and (B)
(D) Neither (A) nor (B)
Q.3. In the light of the above case, what are the most basic needs of Hema known as ?
(A) Safety needs
(B) Affiliation needs
(C) Physiological needs
(D) Self-actualization Needs
Q. 4. In the light of the above case, which is the highest level of needs of Hema which she believes will take
a fairly long time to fulfil?
(A) Security needs
(B) Belongingness needs
(C) Esteem needs
(D) Self-actualization needs
30. Identify the step of controlling process applicable in the following cases:
1. Esha is keenly observing the quantity of capsules produced in a pharmaceutical company. She realises
that there is no need for any action to be taken as the deviations are within the acceptable limits. A day
later when she comes to work she finds the situation opposite to that of the previous
day. This lime the deviation wa’S beyond the acceptable range and needed immediate action. She called
her subordinates and told them that this should not happen again.
2. Mahesh who is the owner of a company has decided to focus only on a few activities of his business. He
considers that the rest of all activities are not critical to the performance of his company. One such area
he finds is of labour. The labour cost recently went up by 4% sending signals of coming danger. Now he
will put his efforts to control this variation by arranging
labour at a cheaper rate.
3. In a company a manager is trying to find out the deviation between the actual number of fans produced
and the desired number. He already knows about the standard as the company has assigned him a
definite quantity of fans to be produced.
4. Manoj Khanna a senior experience manager is concerned about the 2% rise in the raw materials.
However he knows that this is an acceptable range. He tells his staff that if this rise goes beyond 2% it
should be brought into the notice of management. Then he sets a limit of 5% when the management
should give it the priority over other activities.
5. Virendra wants to ran his company in a different manner. He wants to set standards to be achieved in
both qualitative as well as quantitative terms. He wants to judge the motivation, skill levels and
satisfaction of the employees. Ail these things will require qualitative standards. On the other
hand the company will have to set quantitative standards for the number of units produced.
6. Some employees have been assigned the job of judging the output of production in a neutral and reliable
way. They are applying different techniques for achieving this aim. Some of these are personal
observation, sample checking, etc. They are also keeping the units of measurement same
to that of the units of set standards.
Or
Mr. SK Bro is the owner of Nike Enterprises carrying on the businessof manufacturing various kinds of
biscuits. There was a lot of discontentment inthe organisation and the targets were not being met. He
asked his son, Naval, who had recently completed his MBA, to find out the reason.Naval found that all
the decision-making of the enterprise were in the hands of hisfather. His father didn’t believe in his
employees. As a result, both the employerand the employees were not able to understand each others’
messages in thesame sense. Thus, the employees were not happy and targets were not met.Identify any
two communication barriers because of which Nike Enterprises wasnot able to achieve its target.
State one more barrier each of the types identified in (1) above.
31. In an interview with a leading news channel, Mr. Rakesh Kwatra, CEO of 'Get My Job" has suggested
that the Companies which want more and more people to apply for jobs in their organisation should
make the process of applying for jobs easier and candidate friendly. It is for this reason, he said, that
most progressive companies today have a short application process. He also said that the application
form filled by the candidate is very important as it is the information supplied in the application forms,
which helps the manager in eliminating unqualified or unfit job seekers. The company can create a
mechanism that attempts to measure certain characteristics of individuals like aptitude, manual
dexterity, and intelligence to personality. The candidate may then be called for an in-depth conversation
to evaluate their suitability for the job.
(a) Name the process and steps in the process of identifying and choosing the best person out of a number of
prospective candidates for a job discussed above.
(b) Also explain the next three steps in the process which can be subsequently performed by the company
32. Explain the following methods of training:

a. Apprenticeship training
b. Vestibule training
c. Internship training
d. Job rotatuion
33. Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for
itself and had been doing well. It was known for timely completion of orders. The Production Manager,
Ms. Kanta was efficiently handling the processing of order and had a team of fourteen motivated
employees
working under her. Everything was going on well. Unfortunately she met with an accident. Umang
knew that in the absence of Ms. Kanta, the company may not be able to meet the deadlines. He also
knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of
business and goodwill. So, he had a meeting with his employees in which accurate the speedy
processing of
orders was planned. Everybody agreed to work as team because the behaviour of Umang Gupta was
positive towards the employees of the organisation. Hence everyone put in extra time and efforts and the
targets were met on time. Not only this, Umang visited Ms. Kanta and advised her to take sufficient rest.
Identify the leadership style of Umang Gupta and draw a diagram depicting the style
Or
Aryan after completing his MBA from abroad started working in a multinational company 'Roxy Ltd'.
The company deals in making computer parts and accessories. He was very devoted towards his job.
However, whenever he used to communicate with his subordinates, they were unable to understand him.
The reason behind this problem was that he himself was unsure about the concept he used to explain to
the subordinates. This problem was taking place on a daily basis. One day he got an order form his
senior to fly to Australia for a project meeting. There he started explaining his concept to others but
there were many aspects which the team of Australia wanted to explain to him. He was more concerned
about speaking than listening. This resulted in the failure of the meeting which was very important.
When Aryan returned back to his home town he was sad. In this hopelessness he forgot to review the
instructions he had given to his subordinates about a very important programme to be organized in his
home town. Definitely Aryan is facing problems related with communication effectiveness.
Identify and explain the measures that you would suggest to Aryan so that he could improve his
communication effectiveness by quoting lines from the passage.
34. Ram Murthy, the CEO of 'Goodcare Hospitals", a leading chain of hospitals, decided to reward the good
work of the doctors of this organization. For this he instituted two running trophies A "Healthcare
Achievers Trophy' to acknowledge and appreciate the tireless efforts of the doctors who rendered
selfless services to the patients and another 'Beti Bachao Trophy' to recognize the outstanding work
done by the doctors in saving the girl child,
The CEO also wanted to improve the health services in rural areas all over the country. He decided that
all doctors must work in rural areas for at least six months. He also decided that the paramedical staff
should be employed locally.
(a) Identify the incentive provided by 'Goodcare Hospitals' to its doctors through running trophies
(b) Which need of the doctors will be satisfied through the incentive identified in part (a)? State.

1 Who issue treasury bill? 1
a).SBI. b) RBI
c)BOI. d)UBI
2 Other name of zero coupon bond. 1
a)R-bills b)T-bills
c)G-bills d)W-bills
3 When SEBI established as a statutory body? 1
a)1978. b)1995
c)1988. d)1992
4 When was NSE recognized as Stock Exchange System? 1
a).Apr 1993. b)Sep1990
c) Mar1995. d)sep 1992
5 Ascertain (A): Financial market reduce the cost oftransaction. 1
Reason(R): It helps in saving time, efforts and money.
a)(A)is correct and (R) is wrong b)Both (A) and (R) are
incorrect
c)(A) and (R) both are correct and (R) is the correctexplanation of (A)
d)(A) is False but (R) is true
6 Which is not a function of SEBI? 1
a) Regulatory function
b) Development function
c) c)Protective function
d)Administrative function
7 What is share market? 1
a) An institution which provides a platform for buyingand selling of existing
securities.
b) An institution which provides only buying of existingsecurities.
c) An institution which provides only selling of existingsecurities.
None of the above.
8 Ascertain (A): Financial Market providing liquidity tofinancial assets. 1
Reason(R): Financial Markets are classified on the basisof Maturity of financial
instruments.
a)(A) is correct and (R) is wrong
b) both (A) and (R) are incorrect
c) both (A) and (R) are correct and (R) is the correctexplanation of (A)
d)Both (A) and (R) are correct but (R) is not the correct
explanation of (A)
9 What is call money? 1
a) Short term finance repayable on demand with amaturity period.
b) Long term finance with a maturity period
c) Long term money market
None of the above
10 Funds raised through commercial paper are used to meet the Floatation Costs. This 1
is
a) Capital Market
b) Bridge Financing
c) Money market
d) All of the above
11 Assertion: higher the lead time, the lower is amount of working capital requirement. 1
Reasoning: if the raw material is available freely and continuously, then less working
capital is needed as fewer inventories have to be maintained.
a. Both assertion and reason are true and reason is the correct explanation of
assertion.
b. Both assertion and reason are true and reason is not the correct explanation
of assertion.
c. Assertion is true but reason is false.
d. Assertion is false but reason is true.
12 If a firm has growth opportunities, it should prefer giving 1

a. Low dividend
b. High dividend
c. Does not affect dividend decision
13 If ICR is high, firm prefers 1
a. Debt
b. Equity
c. Both a and b
14 Positive leverage effect brings 1
a. Gain for equity shareholders
b. Loss for equity shareholders
c. Both a and b
15 A decision to acquire a new and modern plant to upgrade an old-oneis a 1
a. Financing decision
b. Investment decision
c. Working capital decision
d. Dividend decision
16 Assertion (A): Capital budgeting decisions are very crucial and must be taken with 1
utmost care.
Reasoning (R): Investment decisions affect the earning capacity of the firm over the long
run and are irreversible except at a huge cost.
a. Both assertion and reasoning are true and reason is the correct explanation
of assertion.
b. Both assertion and reason are true and reason is not the correct explanation
of assertion.
c. Assertion is true but reason is false.
d. Assertion is false but reason is true.
17 Higher working capital usually results in 1
a. Higher current ratio, higher risk and higher profits
b. Lower current ratio, higher risk and profits
c. Higher equitably, lower risk and lower profits
d. Lower equitably, lower risk and higher profits
18 Megha is planning to enter in the business of Herbal Shampoo. In the beginning she was 1
thinking there are very few companies making Herbal Shampoo, but when she started
selling her product she realized that many companies are already in the business of selling
herbal shampoo. Identify the factor affecting working capital in the above Para
a. Growth prospects
b. Nature of business
c. Level of competition
d. Business cycle fluctuation
19 Financial planning arrives at 1
a. Minimizing the external borrowing by resorting to equity issues.
b. Entering that the firm always have significantly more fundthan required so
that there is no paucity of funds.
c. Ensuring that the firm faces neither a shortage nor a glut ofunusable funds.
d. Doing only what is possible with the funds that the firm has
its disposal
20 Higher dividends per share is associated with 1
a. High earning, high cash flows, unstable earnings and higher growth opportunities
b. High earning, high cash flows, stable earnings and high growth
opportunities
c. High earning, high cash flows, stable earnings and lowergrowth
opportunities
High earning, low cash flows, stable earnings and lower growth opportunities
21 Explain three factors affecting capital budgeting decision of acompany. 3
22 Steelone enterprise is manufacturing high quality steel utensils. The demand for steel is 3
rising as people are getting aware that plastic is not good for health. This has led to
increase in the production of steel utensils. To encourage sales, Steelone Enterprises
declared a liberal credit policy, which allows three months credit to its wholesale buyers.
In the light of the above, identify the two factors affecting capital requirements of steelone
enterprise. State with reason, whether the factors as identified above, will result in high or
low working capital requirement.
23 Madhusmita's father who was unwell, called her and gave her a gift packet. Madhusmita 3
opened the packet and saw many crumpled share certificates inside. Her father told that
they had been left behind by her Late.Grandfather. As no trading is now done in physical
form , Madhusmita wants to know the process by adopting which she is in a position to
deal with these certificates.
(i) Identify and state the process
(ii) Also give two reasons to Madhusmita
(iii) Why dealing with shares in physical form had beenstopped?
24 What is NSE and write down 3 objectives of NSE? 3
25 Jagannath steel Ltd. is a large and creditworthy company manufacturing steel for Indian 4
market. Now wants to cater to the Asian market and decide to invest new hi-tech machines
.Since the investment is large it requires long term finance. It decides to raise funds by
issuing equity shares. The issue of equity shares involveshuge Floatation cost. For the
expenses of Floatation cost the company decides to tap the money market.
(i)Name and explain the money market instruments the company can use for the above
purpose.
(ii) What is the duration for which the company can getfunds through this instrument?
(iii) State any other purpose for which this instrument can be used.
26 Explain any four objectives of SEBI? 4

27 A company require Rs .5 crores for inventory, payment ofwages, salaries, maintain bank 4
balance etc.
(i) Suggest which financial market company may approach and why?
(ii)State the instrument to raise finance in that market.
28 A company’s earnings before interest and tax is 10 lac. It pays 10% 4
interest on its debt. Total investment of company is 50 lac.
a. Advise company whether it should include debt or equity to raise its capital.
b. Name the concept related to this and explain.
c. Will the company’s decision to raise funds from debt or equity will change if
company’s EBIT becomes 4 lac.
29 Computer tech Ltd., is one of the leading information technology outsourcing services 4
providers in India. The company provides business consultancy and outsourcing services
to its clients. Over the past five years the company has been paying dividends at high rate
to its shareholders. However, this year, although the earnings of the company are high, its
liquidity position is not so good. Moreover, the company plans to undertake new ventures
in order to expand its business.
a. Give any three reasons because of which you think computer tech Ltd. has been
paying dividends at high rate to its shareholders over the past five years.
Comment upon the dividend policy of the company this year by stating any two reasons in
support of your answer.
30 Explain any four factors affecting the decision that determines the amount of profit earned 4
to be distributed and to be retained in the business.
31 Krishna Ltd. is manufacturing steel at its plant at Noida. Due to economic growth, the 6
demand for steel is also growing. The company is planning to set up a new steel plant at
Gurgaon. It needs Rs. 800 crore to start the new plant. It decides to raise Rs. 300 crore
through debentures, Rs. 200 crore through long- term loan from banks and Rs. 200 crore
by issue of equity share to the public. It decided to finance the remaining amount by
utilizing its reserves and surplus.
a. State the importance of financial planning for this company.
b. What is the capital structure of this company? Explain.
c. Identify the financial decision involved when the company decides to raise Rs.
800 crore from different sources of funds.
How will the dividend decision of Krishna Ltd. be affected? Explain.
32 “Viyo Ltd. is a company manufacturing textiles. It has a share capital of rupees 60 lakhs. 6
The earning per share in the previous year was rupees 0.50. for diversification, the
company requires additional capital of rupees 40 lakhs. The company raised funds by
issuing 10%debentures for the same. During the current year the company earned profit
of rupees 8 lakh on capital employed. It paid tax @40%.
a. State whether the shareholders gained or lost, in respect of earning per share on
diversification. Show your calculation clearly.
Also, state any three factors that favor the issue of debentures by the company as part of its
capital structure.
33 What are the methods of Floatation in primary market? 6
34 Explain the meaning and functions of Stock Exchange 6

1. According to the traditional point of view ________ is called market.

(a) Actual Buyer
(b) Possible Buyer
(c) The group of actual and possible buyers
(d) Special Place
2. ________ is called marketeer.

(a) Satisfaction Seeker
(b) Satisfaction Provider
(c) Seller
(d) Service Provider
3. Customer is the ________ of the market.

(a) King
(b) Servant
(c) Sympathiser
(d) Seller
4. With the onset of the thought of producing a thing the process of________ starts.
(a) Buying
(b) Selling
(c) Marketing
(d) Producing
5. ________ starts after the production of things.

(a) Buying
(b) Selling
(c) Marketing
(d) Advertising
6. ________ point of view lays stress upon customer’s welfare.

(a) Production
(b) Product
(c) Marketing
(d) Social Marketing
7. ________ is the central point in the marketing point of view.

(a) Customer’s satisfaction
(b) Customer’s welfare
(c) Quality of the Product
(d) Quantity of Product
8. ‘Products are not purchased but sold’, with which point of view is this statement associated?
(a) Product
(b) Sale
(c) Production
(d) Marketing
9. The collection of utilities is known as ________ .

(a) Purchaser
(b) Seller
(c) Product
(d) Market
10. Which of the following is the function of marketing?

(a) Promotion
(b) Physical Distribution
(c) Transport
(d) All the above
11. Identify the right of consumers being exhibited in the picture on your right
a. Right to choose
b. Right to be heard
c. Right to seek redressal
d. Right to consumer education
12. Identify the right of consumers being promoted in the picture.
13.
e. Right to safety
f. Right to be heard
g. Right to seek redressal
h. Right to consumer education
13. Identify the right of consumers being promoted in the given picture.
a. Right to seek redressal

b. Right to consumer education
c. Right to information
d. Right to be heard
14. Identify the responsibility of consumers being promoted in the picture.
a. Buy only standardized goods
b. Read labels carefully
c. Assert yourself to ensure that you get a fair
d. Be honest in your dealings
15. Identify the responsibility of consumers being highlighted in the picture given below.
a. Be honest in your dealings

b. Learn about the risks associated with products and services
c. Assert yourself to ensure that you get a fair deal
d. Respect the environment.
16. Where can the aggrieved party appeal further in case he is not satisfied with the
order of the District Forum?
a. National Commission
b. State Commission
c. Supreme Court of India
d. All of the above
17. In case an aggrieved consumer is not satisfied with the decision of the National
Commission, he can make a further appeal in
a. State Commission
b. District Forum
c. Supreme Court of India
d. All of the above
18. Which of the following statements is true with regard to the State Commission?
i. It consists of a President and not less than two other members, one of whom
should be a woman.
ii. The members are appointed by the State Government concerned.
19. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): ‘Right to be Informed’ is important for a safe and secure life.
Reason (R): According to this right, the consumer has a right to be protected against goods and services which
are hazardous to life, health and property.
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 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.
20. Read the following statements: Assertion (A) and Reason (R). Choose one of the correct
alternatives given below:
Assertion (A): According to Right to Choose, Marketers should not force the consumer to buy a
particular brand.
Reason(R): Every consumer has the right to choose from a variety of goods and services at competitive
prices.
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 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.
21. Shyam bought a pain-relieving ointment after seeing it being displayed in the chemist ‘s shop. The
ointment tube was packed in cardboard box.
Identify the different levels of packaging of the pain-relieving medicine when it was purchased by Shyam.
Also state two functions of packaging. 1+2=3
or
22. An important task in the marketing of goods relates to designing the label as it provides useful and
detailed information about the products‖. In the light of this statement, draw a label for ―Tea‖ and
highlight the important information to be provided on it. 3
23. What is the Consumer Disputes Redressal Forum? 3
24. Vikram, a consumer, bought a mobile phone from an online retailer. Upon receiving the phone, he
found that it was damaged and did not function properly. He immediately contacted the seller and
requested a replacement, but the seller refused, stating that the return period had expired. What action
should Vikram take under the Consumer Protection Act, 2019? 3
25. Johar, Joginder, John, and Iqbal are friends. They are operating different businesses. Each one has
his/her own concept regarding operating their business. Johar believes in producing products at a
large scale, thereby decreasing the average cost of products and selling them at a reasonable price.
Joginder focuses on providing best quality products because he believes that a customer always
wishes to buy a good quality product. The price of the product is secondary for Joginder. John is of
the belief that the most important aspect of business is sales so he undertakes aggressive selling and
promotional efforts. Iqbal believes that his firm can achieve its goals only by identifying the needs of
the customer and satisfying them better than the competitors.
Identify and explain the Marketing concept or philosophies followed by each of them. 4
26. Give any four points of difference between advertising and personal selling. 4
27. Explain the four elements of marketing mix.

OR
Explain any four factors affecting determination of the price of a product or service. 4
28. A customer purchases a set of branded shoes online, but the shoes appear to be counterfeit when they
arrive. What is the appropriate action the customer can take, and how can they protect themselves
from such incidents in the future? 4
Or
You purchased a refrigerator, and after installation, you noticed a loud noise. Upon calling the service center,
they claimed that the noise was normal. However, you found out that it was a defect. What should you do to
get a fair resolution under the Consumer Protection Act?
29. What are the rights of consumers under the Consumer Protection Act, 2019? 4
30. Discuss the objectives of Consumer Protection? 4
31. Define the three primary levels of packaging in the context of product distribution, and provide a
real-life example for each level 6
32. Identify the method of sales-promotion in the following cases: 6

(i) A mobile company offers a discount of Rs. 1000 to clear off excess inventory.
(ii) A customer gets Rs.5 off on return of an empty wrapper while making a new purchase of the same
product.
(iii) A Company offers a pack of ½ kg. of sugar with the purchase of a 5 kg. bag of wheat flour
(iv) A company offers 40% of extra shaving cream in a pack of 500 gms.
(v) Scratch a card and get a gold coin with the purchase of a cold drink.
(vi) Purchase goods worth Rs. 50,000 and get a holiday package worth Rs. 10,000 free.
33. Besides a ‘consumer’, name any 3 parties who can file a .complaint before the 6
appropriate consumer forum.
Or
Who can file a complaint under the Consumer Protection Act, 1986?
34. Prakhar purchased an ISI mark electric iron from Bharat Electricals. While using,he found that it was
not working properly. He approached the seller and complained for the same. The seller satisfies
Prakhar by saying that he will ask the manufacturer to replace this iron. The manufacturer refused to
replace and Bharat Electricals decided to file a complaint in the consumer court. Can Bharat
Electricals do this. Why? Also explain who is a consumer as per Consumer Protection Act, 1986.
6
Or
Discuss Role of consumer organizations and Non-Government organization (NGO) towards consumers
awareness
ANSWER KEY OF PRACTICE QUESTION PAPERS
ANSWER KEY - PQP – 1
MA ANSWER MAR
RKI KS
NG
SCH
EM
E
Q.N
O.
1 d. Both the statements are true. 1
2 a. Eliminates rule of thumb approach 1
3 d All of them 1
4 a. Management is an intangible force 1
5 d. 1.C, 2.D, 3.B, 4 A 1
6 c Technological 1
7 c Systematised body of knowledge 1
8 a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation 1
of Assertion (A)
9 b. Interrelatedness 1
10 B Dynamic function 1
11 a. Esprit de corps 1
12 a. Social Environment 1
13 a Coordination is the essence of management 1
14 a Centralization and Decentralisation 1
15 d.(i) and (v) 1
16 c. Restricted entry 1
17 c Subordinating personal interest to general interest 1
18 a Both Assertion and reason are true and reason is correct explanation of assertion. 1
19 a. 1(c), 2(a),3 (b) 1
20 c. Assertion (A) is True but Reason (R) is False 1
21 Proper understanding of management principles is necessary because of the following 1X3
reasons:
(A) They provide managers with useful insights into reality.
(B) The help in optimal utilisation of resources and effective administration.
(C) They help in meeting environment requirements.
(D) They are used as basis for management training, education and research.
OR
Basis Unity of Command Unity of Direction
(1) Meaning One subordinate should Each group of
receive orders from & Activities having same
should be responsible to objective, must have one
only one superior. head
(2) Aim Prevents dual Prevents overlapping of
subordination. activities.
(3) Implications Affects an individual Affects the entire
employee. organization
22 functions of Top level Management 1X3
(i) To formulate organizational goals and strategies.
(ii) To coordinate the activities of different departments.
(iii)To be responsible for welfare and survival of the organization.
(iv) To analyse the business environment and its implications
OR
Organizational or Economic Objectives:
(i) Survival-An organization must earn enough revenues for survival.
(ii) Profit-Profit is essential to cover costs and risks of the business.
(iii) Growth-Management must exploit fully the growth potential of the organization.
Indicators of growth are increase in sales turnover, capital investment and number of
products and employees.
23 Management is not a full-fledged profession like legal, accounting or medical 1x3=3
professions because it does not meet the exact criteria of a profession. (Any 3)
1. Well-defined body of knowledge: Management is a profession like Accounting,
Medical and Legal professions as it has a well-defined body of knowledge comprising
well-defined principles based on a variety of business situations.
2. Restricted entry: Entry to management institutes like IIMs, FMS is through an
examination. However, unlike professions such as medicine or law there is no restriction
on anyone being appointed as manager in any business.
3. Professional association: There are several associations of practicing managers in
India, like All India Management Association (AIMA). But legally, it is not compulsory
for managers to be members of such an association.
4. Ethical code of conduct: AIMA has laid down a code of conduct to regulate the
activities of its members. But its membership is not compulsory for all managers. 5.
Service motive: The basic motive of management of an organization is profit
maximization.
24 The various dimensions of the business environment being referred in the above case are 1X3=
as follows: 3
a. Legal Environment: The line is "As per the directions issued by the Supreme Court,
the government passed an order to ban the sale of tobacco products within the area of
200 meters of all educational institutions"
b. Political Environment: The line is "This indicates the government's attitude towards
this business"
c. Social Environment: The line is "Its consumption is injurious to health and people are
becoming more conscious about health and fitness".
25 i) Stability of Personnel: Stability of personnel is principle of management which
Gurpreet is unable to apply and is perpetually on a look out for new staff. 2+2=4
According to Fayol, “Employee turnover should be minimised to maintain
organisational efficiency”. Personnel should be selected and appointed after due and
rigorous procedure. After placement, they should be kept at their post for a minimum
fixed tenure so that they get time to show results. Any adhocism in this regard will create
instability/insecurity among employees. They would tend to leave the organisation.
ii) Remuneration of Employees: According to Fayol, the overall pay and compensation
should be fair and equitable to both employees and the organisation. The employees
should be paid fair wages so that they are able to maintain at least a reasonable standard
of living. At the same time, it should be within the paying capacity of the company. This
will ensure pleasant working atmosphere and good relations between workers and
management.
26 Characteristics of business environment (Any four with brief Explanation) 4
i) Totality of external forces
ii) Specific and general forces
iii) Dynamic nature
iv) Interrelatedness
v) Complexity
OR
Dimensions of business environment
i) Economic
ii) Social
iii) Legal
iv)Political
v) technological
27 Any four 1X4=
1. Planning: “Sanjana decides quantities, variety, colour and texture of all the above 4
items……”
2. Organizing: “..…allocates resources for their purchase form different suppliers”.
3. Staffing: “She appoints a team of designers and crafts people in the company…”
4. Directing: “Praising their effort, Sanjana suggested that they should keep the silk bed
covers for special occasions like Diwali and Christmas…”
5. Controlling: “…offer the cotton bed covers on a regular basis to keep costs under
control.”
28 Art refers to the skilful and personal application of knowledge to achieve desired results. 1+3=4
Management is also an art because it satisfies all the features of an art:
1. Existence of theoretical knowledge: There is a lot of literature available in various
areas of management (like finance, marketing, human resource, etc.)
2. Personalized application: A manager applies his knowledge of scientific methods to a
given situation or a problem in a personalized and unique manner.
3. Based on continuous practice and creativity: A manager gains experience through
regular practice and becomes more effective.
OR
The importance of coordination can be understood by following points: (any two with
proper explanation 1.5 marks each)
1. Growth in size
2 Functional Differentiation
3 Specialisation.
29 i) Technological Environment is the component of business environment highlighted in 2+2=4
the above Para.
Technological Environment includes forces relating to scientific improvements and
innovations which provide new ways of producing goods and services and new methods
and techniques of operating a business.
ii) The two features of business environment as discussed by Professor Mehta with
Naman and Govind are as follows:
a. Dynamic nature: It is dynamic in nature and keeps on changing due to technological
upgradations, shifts in consumer preferences or increase in competition in the market.
b. Inter-relatedness: All the elements of business environment are closely interrelated.
Therefore, any change is one element may necessitate corresponding changes in the other
elements as well.
Functional Foremanship. As per this technique, the planning and execution should be 2+1+1
treated as two separate functions and each function should be handled by a separate in- =4
charge.
Each in-charge must be assisted by four specialised personnel who would give
instructions to workers.
Assistants of Planning in-charge would be:
a) Instruction Card Clerk.
b) Route Clerk.
c) Time and Cost Clerk.
d) Disciplinarian.
Assistants of Production in-charge would be:
e) Speed Boss.
f) Gang Boss.
g) Repair Boss.
h) Inspector.
31 (i) Political Environment 1.5X4
‘After winning the election, Prime Minister Mr. Narender Modi launched a Campaign of =6
‘Swachh Bharat’
(ii) Social Environment:
‘People started becomes more careful aware about the cleanliness around their area.’
(iii) Economic Environment:
‘a new service tax for Swatch Bharat was also started
(iv) Technological Environment:
‘Import new and better technology to adopt new methods of treating the garbage and
waste’
32 Yes, Taylor's principles of scientific management and Fayol's principles of management 1.5X4
are mutually complementary because of =6
the following reasons: (Any four)
Basis Taylor Fayol
1. Personality Taylor was a scientist by Fayol was more of a practitioner
profession who used his
experience while developing the
principles.
2. Perspective Taylor's principles & techniques Fayol's principles are based on
are based on the bottom upward top downward approach
approach i.e. from the lower- i.e. from the top-level
level management to the top- management to the lower-level
level management. management.
3. Scope and Taylor's principles & techniques Fayol's principles have wider
Applicability are relevant mainly with respect relevance in all functional
to production activities carried areas whether it may be top,
out by the middle or low level
lower-level management management.
4. Focus Taylor's principles & techniques Fayol's principles are focused on
are focused on improving the overall top and
improving the workers' middle-level management
efficiency and production. efficiency.
5. Taylor expressed his thoughts Fayol expressed his ideas as the
Modifications and views under the theory of general theory of ½
scientific management management mark
6. Relevance Taylor's principles & techniques Fayol's principles focus mainly each
focus mainly on improving the on improving the for
relationship between workers general behaviour of the workers headi
and the in an organisation ng and
management. 1
OR mark
Techniques of work study includes the following: each
1. Time study for the
2. Motion study expla
3. Fatigue study nation
4. Method study =6
33 The various principle of scientific management that Roshan plans to apply in his business 2X3=
are described below: (For identification of heading 1 mark each and explanation 1 mark 6
each)
1. Science, not Rule of Thumb:
2. Harmony, Not Discord:
3. Cooperation, Not Individualism.
34 Importance of Management (Any four with proper explanation) 1.5X4

1.Helps in achieving group goals =6
2. Creates a dynamic organisation
3. Increases efficiency
4. Helps in achieving personal objectives
5. Helps in Development of Society
OR
Characteristics of Coordination (Any four with proper explanation)
1. Integration of group efforts
2 Unity of action
3. Continuous process
4. All pervasive function
5Deliberate function
6 Responsibility of all managers
1. (a) 4,6,2,1,7,5,3.
2. (b)Assertion is correct reason is incorrect.
3. (b) Objective.
4. (d) Planning is a mental exercise.
5. (d) All of these.
6. (a) Benefits of specialization
7. (a) Both assertion and reason are correct and reason is the correct explanation of assertion.
8. (c ) Motivation of employees.
9. (b) Responsibility.
10. (a) Both assertion and reason are correct and recently is the correct explanation of assertion.
11. (a) Functional structure
12. (c ) Span of management
13. (d) Organising
14. (a) Quick decision making.
15. (c )
16. (a)
17. (d)
18. (a)
19. (d)
20. (c )
21. Single use plan: They are made to be used only once. They aim at dealing with some unique or rare
situation within the organisation. Budget, programs and projects are included in single use plan.
Standing plan: They are used over and over again. These are the policies and procedures
developed to ensure that the internal operation of the business goes on smoothly. Once developed,
they are used again and again with some modifications to suit business requirements. Policies,
procedures , methods and rules are included in standing plan.
22. (I) Planning function is performed by top level management only,the middle level management has
the responsibility of implementing it and the lower level management has to carry out day to day
operations as per plans. They are not allowed to deviate from the given course of action. Thus, it
leads to a reduction in creativity.
(II) In planning, generally managers have to follow pre determined plans and they are not in a
position to change it. Thus planning leads to rigidity.
23. Planning leads to rigidity . Because of the firms advanced planning it could not suddenly bring
changes in its plans as the whole organization had started implementing the decided plan . Planning
may not work in a dynamic environment .However, the firm knows that the external environment is
changeable and continues to vary in a fast manner . Planning involves huge cost . It has decided to
allocate a portion of its budget specifically for proper planning as it knows that there are going to be
expenses like experts fee, survey charges, etc.
24. Chinglen is at the real point of decision making in the course of his planning . He has arrived at this
point after identifying various alternative courses of action . After identification he was thoroughly
involved in evaluation of each of these alternatives . He later got involved into making several
permutations and combinations of these alternatives to arrive at this point . The stage through which
Chinglen is going is ‘selecting an alternative’ . The real point of decision making is selecting an
alternative . The next 2 steps in the process of planning are ‘implementing the plan’ and ‘ follow
through’.
25. Objectives: Objectives are the end results of the activity that an organization seeks to achieve through
its existence . All other activities within the organization are directed towards achieving these
objectives. “One of our objectives was to earn 10% profit on the amount invested in the first year .”
Policy : A policy is a set of general guidelines that helps in managerial decision making and action
. “It was decided that the raw materials like fruits, vegetables ,spices etc. will be purchased on 3
months credit from farmers cultivating only organic crops.
Procedure : A procedure contains a series of specific steps to be followed in a chronological order
to carry out their routine activities. “ she also decided to follow the steps required for marketing of
the products through her own outlets.” “ The exact manner in which the production activities are to
be carried out”.
Rule : A rule is a specific statement relating to the general norms in terms of dos and donts that
guide the behaviour of people . It commands strict obedience and a penalty is likely to be imposed
on its violation .” While working on the production table a penalty of ₹100 per day for not wearing
caps gloves and aprons was announced.”
26. (a) Objectives. (b) Policy. (c ) Procedure.
27. (a) Method refers to the standard way of performing routine and repetitive jobs. It deals with a task
comprising one step of a procedure and specifies how this step is to be performed. For example,
method of calculating wages or method of calculating the value of stock
(b)Budget: A budget is a statement of expected results expressed in numerical terms. It is a plan of
action designed to achieve a specific goal. It may be expressed in time, money or physical units. It
is an instrument of both planning and control. For example, sales budget, cash budget.
28. Features of planning:
a. Planning focuses on achieving objectives: Organisations are set up with a general purpose in
view . Specific goals are set out in the plans along with the activities to be undertaken to
achieve the goals . Thus planning is purposeful . Planning has no meaning unless it
contributes to the achievement of predetermined organisational goals.
b. Planning is futuristic: Planning essentially involves looking ahead and preparing for the
future . The purpose of planning is to meet future events effectively to the best advantage of
an organization . It implies peeping into the future, analysing it and predicting it . Planning is
therefore regarded as a forward looking function based on forecasting.
c. Planning involves decision making : Planning essentially involves choice from among various
alternatives and activities . The need for planning arises only when alternatives are available .
In actual practice planning presupposes the existence of alternatives . Planning thus involves
thorough examination and evaluation of each alternative and choosing the most appropriate
one.
d. Planning is a mental exercise : Planning requires application of the mind involving foresight
,intelligent imagination and sound judgment . It is basically an intellectual activity of thinking
rather than doing, because planning determines the action to be taken . However planning
requires logical and systematic thinking rather than guess work or wishful thinking.
29. Procedures are plans that establish required steps for handling future activities. It is a systematic
way of handling regular events. It explains what is to be done in a particular type of situation,e.g., Mc
Donald’s has a procedure explaining how big Macs are to be cooked, how long they can stay in the
warming rack, and so forth.
Programme: is a detailed statement about a project which outlines the objectives, policies,
procedures,rules, tasks, human and physical resources required and the budget to implement any
course of action. Programmes will include the entire gamut of activities as well as the
organisation’s policy and how it will contribute to the overall business plan.
30. Organising plays a crucial role in an enterprise . The points which highlight its importance are :
(a ) Benefit of specialization
( b ) Clarity in working relationships
( c ) adaptation to change .
31.
Basis Functional Divisional
a) formation Created on the basis of Created on the basis of a
functions. product or area of operation.
b) specialisation Functional specialisation is Product specialisation is
attained. attained.
c) Responsibility Fixation of responsibility is Fixing of responsibility is
difficult. easy.
d)Managerial development. Difficult,as less autonomy is Easier, as he gains experience
given to the managers. in all functions of a particular
product.
e)Cost Economical, as duplication of Costlier, as there is
work is not there. duplication of resources and
work.
f)Coordination Difficult for a company Easy, as a particular product
having multiple products. is integrated in one
department.
32. The concept of management which is discussed above is ‘ delegation ‘.

The two importance of delegation:
Delegation helps in the development of employees.
Delegation acts as the basis of management hierarchy.
33. (a) Delegation of authority and decentralisation of authority.
(b)Any two difference between delegation and decentralisation.

(c ) Binit needs to be careful while selecting those decisions related to the outlet which will be taken
by Nirja independently and those that will be retained by him. It is important to demark the decision
making power as complete decentralisation would imply the delegation of all decision making
functions to Nirja and this would obviate the Binit’s role as the owner of the business.
34. (a) The function of management discussed in the above paragraphs organising it is the function of
identification of activities to be carried out grouping task establishing authority and allocating
resources required to carry out the plan.
(b)The points which highlight its importance are
i) benefits of specialization through organising jobs are allocated amongst the workforce it ensures
that the specific worker performs specific job on a regular basis which allows him to gain experience
in the area and leads to specialization.
ii) Clarity in working relationships :organising leads to the formation of organizational structure
which clarifies the authority responsibility positions among individuals in the organization. The part
of flow of communication and accountability relationship is also specified.
iii) Optimum utilization of resources . The proper assignment of jobs avoids overlapping of work
and makes the best possible use of the resources . The wastage of resources and efforts is minimised
due to avoidance of duplication of work.
iv) Adaptation to change : Organising allows a business enterprise to accommodate changes in their
business environment and pave its way to smooth transition . The organizational structure can be
suitably modified and inter-relationship among managerial levels can be revised . It gives stability to
the organization as it continues to survive and grow in spite of many changes .(or any other relevant
points).
QUE Correct answer RE

STI MA
ON RKS
NO.
1 d
2 B or d
3 a
4 d
5 a
6 B
7 C
8 d
9 d
10 d
11 a
12 B
13 a
14 C or b
15 A
16 C or b
17 C
18 A
19 B
20 C
21 a.The function of management which is indicated here is Staffing.

b.One advantage of staffing is:
Staffing helps in obtaining competent personnel for the organisation.
c.The most important resource of an organisation indicated here is
‘Human
Resource’.
22 Vestibule training .
It is a method where workers learn how to operate equipment in a

classroom-like setting away from the actual work floor. Workers practice
on dummy machines that are models of the industrial equipment they will
be using. Once they are adequately trained, they can be moved to the
factory to perform the work.
Or
•Concept: Workload Analysis.
a process that helps organizations determine how to best distribute work

among their employees:
23 (i) The cycle company offered him a permanent pensionable job

(ii) According to above line Raman is able to fulfil his following needs:
(a) Physiological Needs
(b) Safety or Security Needs
(iii) The other need followed by the above stated needs that are still to be
satisfied are : (a) Affiliation need :IT refers to the need for affection,
sense of belongingness, acceptance and friendship
(b) Esteen need: It refers to the need for self-respect, status, recognition
and attention
24 A-ii,B-iv,C-I,D-iii
25 Ans. As the company decided to hire fresh talent from TOP University
for their vacancies in Information and Technology Department, can go
for Campus Recruitment (External Source of Recruitment).
Advantages of external source of recruitment:
(i) Fresh talent: With external recruitment, there is infusion of fresh
talent with innovative ideas into organisation
(ii) Wider choice: In external recruitment, the organisation have wider
choice for selecting
(iii) Qualified personnel: In external process of recruitment, organisation

get qualified, skilled and talented personnel for particular jobs.
(iv) Latest technological knowledge: Through campus placement, the

organisation can get latest technical knowledge.
(v) Competitive spirit: New employee brings competitive spirit in the

organisation, which motivates the existing employees of the organisation
also
26 Ans. (a) Training and Development: It means providing in-house training

and collaborating with other institutions to provide training and develop
skills of employees.
(b) Benefits to Moga Industries are:
(i) It increases the morale of workers as it lowers absenteeism and
employee turnover.
(ii) It emphasize on systematic learning which is better than hit and trial
method which leads to wastage.
(iii) It increases employee productivity both in terms of quality and
quantity of output. This leads to increase in performance and productivity.
(iv) It helps in developing future manager who can take charge in case of
emergency.
(v) It helps in adapting to rapidly changing environment.
27 Co-partnership / stock option, which is a type of financial incentive, has

been
suggested by Mrs. Rajlaxmi to the CEO of the company.
• The two other financial incentives are described below:
• Retirement Benefits: An organisation may provide several retirement
benefits
to its employees after their retirement such as provident fund, pension and
gratuity which provide financial security. These benefits serve as an
incentive
when they are in service in the organisation.
28 • Sources of recruitment used by ‘Senor Enterprises Ltd.’:

• Promotion—for the post of Human Resource Manager
• Placement Agencies and Management
• Consultants—for the post of Marketing Head
• Casual Callers—for the post of Assistant Manager
• One merit of each source of recruitment:
o Promotion. Promotion of employees helps in improving their motivation,
loyalty and satisfaction level.
o Management Consultants. Management Consultancy firms help the
organization to recruit technical, professional and managerial personnel. They
recommend suitable names to their clients.
Casual Callers. Maintaining a database of unsolicited applicants in their offices

helps the organization in reducing the cost of recruiting workforce. It is the
cheapest source of recruitment.
29 1-A,2-D,3-C,4-D
30 Answer:
The different steps of the controlling process applicable in the above cases are:
1. Taking corrective action.
2. Analysing deviations. Critical point control is the technique used.
3. Comparing actual and standard performance.
4. Analysing deviations. Management by exception is the technique used.
5. Setting standards.
6. Measurement of actual performance.
OR
Answer:
•The two communication barriers because of which Nike Enterprises was not
able to achieve its targets are:
•Organisational barriers: Organisational Policy
•If the organisational policy, is not supportive to free flow of communication, it
may hamper effectiveness of communications. Like in the above case Naval
found that all the decision making power of the organisation was highly
centralised as it was in hands of his father only.
•Psychological barriers: Distrust Sometimes if there is lack of trust between the
parties, they cannot understand each other’s message in the same sense. Like
in the above case Naval found out that his father didn’t believe in his
employees.
o Organisational barriers:
o Status: Sometimes a status conscious manager also may not allow his
subordinates to express their feelings freely. This kind of an attitude may create
psychological distance between him and his subordinates.
o Psychological barriers: Premature evaluation: Sometimes people tend to
evaluate the meaning of message even before the sender completes his
message on the basis of their own judgement, exp erience etc.
31 Ans- (a) Selection s
Steps in the process of selection discussed
1. Preliminary screening
2. Selection test.
3. Employment interview
(b) (i) Reference and background checks: Many employers
request names, addresses and telephone numbers of references for the
purpose of verifying information and gaining additional information on
an applicant. Previous employers, known persons, teachers and
university professors can act as references.
(ii) Selection Decision: The final decision has to be made from
among the candidates who passed the tests, interviews and reference
checks. The views of the concerned manager will be generally
considered in the final selection.
(iii) Medical Examination: After the selection decision and before the
job offer is made, the candidate is required to undergo a medical fitness
test. The job offer is given to the candidate being declared fit after the
medical examination.
32 a. Apprenticeship training is a program that allows individuals to

learn a trade or craft while earning money and gaining real-world
experience
b. Vestibule training is a type of on-the-job training that simulates a
work environment to help employees practice their skills. It's also
known as "near the job training" or "simulated training"
c. Internship- joint training by the company and professional experts
d. Rotation-from one department to another department
33 Ans Democratic style of leadership is being adopted by Umang Gupta.
Draw diagram of this style
Or
Ans. The measures we would suggest him to adopt to improve his
communication effectiveness are:
(i) Clarify the ideas before communication: The problem to be

communicated to subordinates should be clear in all its perspective to the
executive himself. The entire problem should be studied in depth,
analyzed and stated in such a manner that is clearly conveyed to
subordinates. Lines: "The reason behind this
problem was that he himself was unsure about the concept he used to
explain to the subordinates".
(ii) Be a good listener: Manager should be a good listener. Patient and
attentive listening solves half of the problems. Managers should also give
indications of their interest in listening to their subordinates.
Lines: "He was more concerned about speaking than listening".
(iii) Follow up communications:
There should be regular follow up and review on the instructions given to
subordinates. Such follow up measures help in removing hurdles if any in
implementing the instructions.
Lines: "He forgot to review the instructions he had given to his
subordinates about very important programme to be organized in his
home town."
34 ANS a) Employee Recognition
(b) Esteem Need
These include factors/needs such as self-respect, autonomy status,

recognition and attention
Q. ANSWER
NO
1 RBI
2 T-bills
3 1992
4 Apr1993
5 (A)and (R) both are correct and (R) is the correct explanation of (A)
6 Administrative function
7 An institution which provides a platform for buying and selling of existing
securities.
8 Both (A) and (R) are correct but (R) is not the correct explanation of (A)
9 Short term finance repayable on demand with a maturity period
10 Bridge financing
11 Assertion is false but reason is true
12 Low dividend
13 Debt
14 Gain for equity shareholders
15 Investment decision
16 Both assertion and reasoning are true and reason is the correct explanation of assertion.
17 Higher current ratio, higher risk and higher profits
18 Level of competition
19 Ensuring that the firm faces neither a shortage nor a glut of unusable funds.
20 High earning, high cash flows, stable earnings and lower growth opportunities.
21 With explanation of the
following
i. Cash flow of the
project
ii. Return on
investment
iii. Investment criteria
22 With explanation of the
following
Nature of business
Credit allowed
Scale of operations
23 (i) Dematerialization -It is a process where securities hold by investors in physical form are
cancelled and the investor give an electronic entry or number so thatshe/he can hold it as an
electronic balance in an account.
(ii) problems with dealing in physical form
-Theft
-Transfer delay
The shareholders who continue to hold shares and other types of securitiesof listed companies in
physical form even after this date will not be able to lodge the shares for future transfer. They will
need to convert them to demat form compulsorily if they wish to effect any transfer
24 NSE is the latest, most modern and technology driven exchange. It was set up by leading financial
institution, banks and insurance companies. It was recognized asa stock exchange in
Apr1993.NSE was set up with the following objectives:
(i) Establishing a nationwide trading facility for all type of securities.(ii)Enable shorter
settlement cycles and book entry settlements.
(iii) Meeting international benchmarks and standards.
25 (i) Commercial paper-It is an instrument issued by large and creditworthy companies to
raise short term funds at lower rates of interest than Market rates. It is an unsecured,
negotiable promissory note with a fixed maturity period.
(ii) 15 days to 1year
It can also be used for seasonal and working capital needs.
26 The overall objective of SEBI is to protect the interest of investors and topromote the
development and regulate the securities markets. These are elaborated as follows:
(i) To regulate stock exchanges and the securities industry to promote theirorderly
functioning.
(ii) To protect the rights and interest of investors to guide and educate them.(iii)To prevent
trading malpractices and achieve a balance between self regulation and statutory regulation.
(iv)To regulate and develop a code of conduct and fair practices by intermediaries.
27 (i)Money market is the market from where it can raise money to fulfill its requirement.
The reason is company require money for working capital i.e. maximum for one year
and market for short term is money market.
(ii)The instrument to raise money in money market are
a-call money
b-Treasury bill
c-commercial bill
d- commercial paper
e- certificate of deposit
28 a. Company should prefer debt to raise fund as debt is gainful for equity shareholders till
ROI> rate of interest
ROI=( EBIT/ total income) x 100 = (10/50) x 100 = 20%, interest= 10%
20%> 10%
b. Financial leverage or trading on equity
c. Yes company’s decision will change if EBIT becomes 4Lakhs, because with 3 lakhs ROI
will become less than interest.
ROI=(EBIT/total income) 100= (4/50) 100= 8%
Interest= 10%, 8%< 10%
So, now company must prefer equity to raise capital.
29 a. Computer Tech Ltd. has been paying dividends at high rate to its shareholders over the
past five years because of the following reasons:
Earnings
Cash flow position Access
to capital market
b. This year company is likely to follow a conservative dividend policy because of the
following reasons:
i. Cash flow position of the company is not good, and dividends are paid in cash
Company may like to retain profits to finance its projects.
30 Explain any four of the following:
Earnings
Stability of earnings
Cash flow position
Growth opportunities
Preference of shareholders
Taxation policy
31 a. Financial planning will help the company in avoiding business shocks and surprises. It
will reduce waste and duplication of efforts.
b. Capital structure refers to the mix between owners’ funds and borrowed funds. It is
Calculated as debt equity ratio.
c. Financing decision
d. Since the company has growth opportunities of setting up a new steel plant at Gurgaon, it
retains Rs. 100 crore out of profits to finance the required investment. So, it is likely to pay
fewer dividends. However, since the company makes more debt financing than funding
through equity. It implies that cash flow position of the company is strong. Therefore it can
pay higher dividend.
32 a. Shareholders have gained after the issue of debentures since the earning per share
has increased from Rs. 0.50 to Rs. 4.
b. Factors that favor issue of debentures by the company:
i. A good cash flow position makes debt funding more valuable
ii. High interest coverage ratio indicates better ability to meet the debt
service obligations.
iii. Lower the cost of debt, higher is the ability to employ debt.
33 Following are the various methods through which floating of new issues can bedone.
(i) offer through prospectus -
A prospectus is published as advertisements in news paper, magazines etc. It provides such
information as the purpose for which the fund is being raised,company's background and
future prospect etc .such information helps the public and the investors to know about the
company as well as the potentialrisk and the earnings involved.
(ii) Offer through sale-
Under this method the company doesn't issue securities directly to the public rather there issued
through intermediaries as the face value to investing public .
(iii) private placement -
The securities are sold only to some selected individuals and big institutional investors rather
than to the public. This method saves the company from various mandatory or non mandatory
expenses such as cost of manager fees,commission, underwriter fees etc.
Rights issue-
34 Meaning-
According to securities contracts Regulation Act 1956 stock exchange means any body of
individuals whether incorported or not, regulating or controlling thebusiness of buying and
selling in securities.
Functions-
1- Providing liquidity and marketability to existing securities -
It is the creation of a continuous market where securities are bought and sold.This
provides both liquidity and easy marketability to already existingsecurities in the market.
2- Pricing of securities -
A stock exchange is mechanism of constant valuation through which the pricesof securities are
determined. Such a valuation provides instant information to both buyers and sellers in the
market.
3- Safety of transaction -
The membership of a stock exchange is well regulated and it's dealings are welldefined
according to the existing legal framework.
4- contribution to economic growth -
A stock exchange is a market in which existing securities are resold and traded.
This leads to capital formation and economic growth.
Answers: 1. (d), 2. (b), 3. (a), 4. (c). 5. (b), 6. (d), 7. (a), 8. (b), 9. (c), 10. (d), 11. (a). 12. (a)
13. (c) 14. (a) 15.(b). 16.(a) 17 (b)18 (a). 19(d). 20 (a)
Question 21.
Ans: 1- Different levels of packaging of the pain-relieving medicine are Ointment tube; Primary packaging
Cardboard box: Secondary packaging
Functions of Packaging (any two)

(i) It helps in product identification.
(ii) It helps in protection of the product from spoilage, breakage, leakage, damage etc.
(iii) It facilitates use of the product to the consumers through appropriate sizes and shapes.
(IV)It helps in promotion of the product as a good package attracts the attention of the people at the time of
purchase. Or
Ans: Student must give information such as- MRP, Date of manufacturing, Date of expiry, Brand name, Batch
no.., Contents, etc. on label.
Question 22.
Ans: (i) Product Mix
(ii)Other element: Price mix, Place mix.
(iii)Concept which help in identifying the product and assure quality is branding
Q 23. Answer: It is a three-tier system comprising:

District Consumer Forum
State Consumer Forum
National Consumer Forum .These forums resolve consumer complaints and disputes through legal
proceedings
Q 24. Answer: Vikram can file a complaint under the Consumer Protection Act, 2019, as the phone is
defective and does not meet the expected standard. He can approach the District Consumer Forum for
redressal. According to the Act, consumers are entitled to receive goods that meet the agreed-upon standards
and quality, and they are protected from unfair trade practices. Since the mobile phone is defective, Vikram
can demand a replacement or compensation.
Question 25.
Answer:
Johar :The Production Concept
Joginder: The Product Concept
John: The Selling Concept
Iqbal : The Marketing Concept Brief explanation of all four concepts
Question 26.
Medium of Communication --Mass media (TV, radio, internet, print) Direct, often face-to-face interaction
Customization---General message to a wide audience Personalized interaction for customer needs
Feedback Mechanism----Indirect and not immediate Direct and immediate
Product Suitability--Suited for simpler products and brand awareness More effective for complex, high-value
products
Cost Structure--High initial investment in media and production Costs related to sales force (salaries, training)
Focus---Acquiring new customers and creating brand image Building long-term customer relationships
Question 27
Marketing Mix’. The marketing mix include the following four points:
I Product . Product means anything of value that is offered to the market for sale. Product consists of the
physical product, its quality, brand name, packaging and label.
i. Price. It is a value that a buyer passes on to the seller in lieu of the product or service provided. It is a
source of revenue for the seller. Price element includes Price, Discounts, Allowances, Credit Terms,
etc.
ii. Place (or distribution). Place utility refers to the activities that are involved in transferring the
ownership to customers and to make the product available at the right place at the right time. It
includes modes of transportation, channels of distribution and inventory maintenance.
Iv Promotion. This element includes activities involved in informing and persuading the customers.
Advertising, personal selling and sales promotions are different ways of promotion
Q 28.Answer:
The customer should file a complaint with the seller and request a full refund or replacement if the product is
counterfeit.
The customer can also file a complaint with the Consumer Forum for unfair trade practices under the
Consumer Protection Act, 2019.
To avoid such incidents in the future, the customer should:
Buy products only from trusted and verified online platforms.
Check reviews and ratings of sellers and products before purchasing.
Ensure that the seller has a clear return and refund policy.
The Right to Safety and Right to be Informed protect consumers from such deceptive practices.
Or
Answer:
If the service center is not addressing the issue, you can file a complaint with the District Consumer Forum.
The complaint should state that the refrigerator is defective and does not perform as expected.
The consumer can seek a replacement or repair of the defective product, or if the issue persists, a refund.
If needed, you can escalate the issue to the State or National Consumer Forum for further action.
Under the Consumer Protection Act, 2019, consumers are entitled to products that meet the promised
standards, and defective products can be returned or replaced.
Q 29
Answer: The rights of consumers include:
Right to Safety
Right to be Informed
Right to Choose
Right to be Heard
Right to Redress
Right to Consumer Education
Q 30
Answer: The objectives include:
Protecting consumer rights.
Ensuring fair trade practices.
Promoting consumer awareness.
Redressing consumer grievances
Question 31 Ans –
Primary Packaging: it is the layer of packaging that directly encloses the product. It is the first level of
packaging that comes into direct contact with the product and is often the most visible to the consumer. Real-
Life Example: For a consumer electronics company, the primary packaging for a smartphone would be the
box that holds the phone itself, along with any accessories such as charging cables and earphones.
Secondary Packaging: it refers to the packaging used to group and protect multiple units of the primary
package during distribution. It is designed to facilitate handling and transportation of the product. Real-Life
Example: Continuing with the smartphone example, the secondary packaging would be the larger carton that
holds multiple individual phone boxes for shipment to retailers.
Tertiary Packaging: it is the outermost layer of packaging used for bulk transportation and storage of
products. It is designed to protect products during long-distance transportation and warehousing. Real-Life
Example: In the context of the consumer electronics company, the tertiary packaging would be the large pallets
or crates used to hold and transport numerous secondary packages filled with smartphones to distribution
centers or retail stores
Ans 32. (i) Rebate (ii) Refund (iii) Product - combination (iv) Quantity - gift (v) Instant draws and assigned
gift (vi) Lucky Draw
Or
Ans: (i) Synergy in Total Promotion Efforts.
(II)Advertisement.
(ii) (a) Public Relation (b) Advertisement (c) Personal Selling (d) Sales Promotion
Q 33
Ans. A complaint under Consumer Protection Act, 1986 can be made by: (Any two)
(i) Any consumer.
(ii) Any registered consumers’ association.
(iii) The Central Government or any State Government.
(iv) One or more consumers, on behalf of numerous consumers having the same interest.
(v) A legal heir or representative of a deceased consumer
Q 34 Ans. Bharat Electricals cannot file a complaint. This is because Bharat Electricals is not a consumer as
per Consumer Protection Act, 1986 because they bought the goods for resale or for commercial purpose.
Under the Consumer Protection Act, a consumer is defined as:
(i) A person who buys goods for consideration which has been paid promised, or partly paid and partly
promised or under any scheme of deferred payment. It includes any user of such goods, when such use is
made with the approval of the buyer but does not include a person who obtains goods for resale or any
commercial purpose.
(ii) Any person who hires or avails any service for consideration which has been paid or promised or partly
paid and partly promised or under any system of deferred payment. It includes any beneficiary of services
when such services are availed of with the approval of the person concerned but does not include a person
who avails of such services for any commercial purpose.
Or
Role of Consumer Organizations and NGOs
Various consumer organizations and non-government organizations set up for non-profit motive have a
strong role in promoting the interests of the consumers. It can be summed up as under:
1. Educating the general public about consumer rights by organizing training programmes, seminars &
workshops.
2. Publishing periodicals & other publications to impart knowledge about consumer problems, legal
reporting, reliefs available & other matters of interest.
3. Carrying out comparative testing of consumers products in accredited laboratories to test qualities,
brands etc.
4. Encouraging consumers to strongly protest & take an action against unscrupulous, exploitative &
unfair trade practices of sellers.
5. Providing legal assistance to consumers by way of providing aid, legal advice etc.
6. Filing complaints in appropriate consumer courts on behalf of consumers.
7. Taking an initiative in filling cases in consumer courts in the interest of general public, not for any
individual.
Important consumer organizations and NGOs operating in India
1) Consumer Coordination Council, Delhi.
2) Common Cause, Delhi.
3) Voluntary Organization in Interest of Consumer Education (VOICE), Delhi.

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NAVODAYA VIDYALAYA SAMITI

Aditya Prakash Singh

S.No. NAME OF THE RESOURCE DESIGNATION & ROLE

1 UTTAM DEY PGT COMMERCE Member

2 Dr SEW KUMAR PRASAD PGT COMMERCE Member

3 SHIBEN KARMAKAR PGT COMMERCE Member

4 LAITONJAM ROMOLA PGT COMMERCE Member

5 CHARANGA ROSE MARING PGT COMMERCE Member

6 ANISH P PRINCIPAL Coordinator

WHOLE SYLLABUS – SAMPLE QUESTION PAPERS

Marks: 80 Duration: 03 hrs.

01. --------------- is cheaper but is riskier for a business

08. Which of the following statement is false

11. Marketing activities do not include which of the following activities: –

13. For the following statements, choose the correct option

16. For the following statements, choose the correct option

18. Match the following and choose the correct alternative

(a) (i) – (C), (ii) – (D), (iii) – (B), (iv) – (A)

21.List any three functions performed by the top-level management. 03

22.'An effort to control everything may end up in controlling nothing'. Explain.

25. Explain about the qualities of a good leader

Suggest any four methods to overcome barriers to communication. 04

Write a short note on any four types of employment tests. 04

29.Explain the concept of Democratic leadership and state its features. 04

1) Explain any two significances of principles of management from the following:

Explain any six points highlighting the importance of planning. 06

34. Distinguish between formal and informal organisation 06

Marks: 80 Duration: 03 hrs.

Q.7.Which principle prevents dual subordination?

Q.11.Arrange the steps involved in the process of controlling in correct sequence:

Q .15. Which of the following is the Protective function of SEBI

Q.17. Which of the following is incorrect about sales promotion?

Q .27. Describe any four non-monetary incentives. 4

In context of the above case:

Q.31 Briefly explain any three of the following principles of management. 6

SAMPLE QUESTION PAPER – 3

4. Which of the following is not an element of social environment

9. (I) Delegation of authority is inevitable and decentralisation is voluntary.

Read the text and answer the questions No-12-15

12. Identify the process highlighted in the above case

13. Which type of account is being indicated here

14. what is the role of bank here

15. What is the role of the person he has chosen

17. Which function of marketing is highlighted in the above case?

19. What types of names do you see in the above case?

31. FW Taylor gave scientific outlook to management.He developed “principles of scientific

Marks: 80 Duration: 03 hrs.

A. Electronic, Woollen garment

11 Identify the incorrect statement with respect to ‘dividend decision’: 1

12 A consumer purchases a product that proves to be defective. Which of the following 1

13 Match the statements given in column I with the importance of business 1

14 A variety of programme designed to promote or protect the company’s image and 1

18 A high debt-equity ratio states that a company 1

19 A consumer purchased a defective air conditioner from a reputable company. The 1

20 Read the following statements carefully: 1

21 Explain briefly any two limitations of planning 3

22 Explain any 3 points of importance of directing function of management. 3

28 Explain briefly the last two steps in the process of controlling. 4

30 Distinguish between Product and Production concept of marketing philosophies on 4

32 Analyse the importance of delegation of authority in organizational management, 6