PRE BOARD Class 12 - Business Studies Time Allowed: 3 hours Maximum Marks: 80
General Instructions:
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.
7. Attempt all parts of the questions together.
1. What type of power management is? [1]
a) Collective b) Separate
c) Invisible d) Visible 2. They don’t sell what they can make, but they make what they can sell. Which marketing concept is being [1] highlighted in the given statement?
a) Product concept b) Production concept
c) Selling concept d) Marketing concept
3. ________ is a feature of planning also referred to as primacy of planning. [1]
a) Pervasive b) Integrating
c) Continuous d) Primary function of management
4. Of the following sources of funds, ________ are Owner's Funds. [1]
a) All of these b) Preference share capital
c) Equity share capital d) Reserves and surpluses
5. Identify the right of consumers being exhibited in the picture on your right. [1]
1/6 a) Right to be heard b) Right to consumer education
c) Right to seek redressal d) Right to choose
6. Which of the following steps in the Controlling process state that comparison becomes easier when standards are [1] set in quantitative terms?
a) Setting performance standards b) Measurement of actual performance
c) Analysing deviations d) Comparing actual performance with
standards 7. Which of the following is not a feature of money market? [1]
a) Investment in money market requires huge b) It deals in medium and long-term securities financial outlay
c) Money market instruments are unsecured. d) Its securities enjoy a higher degree of liquidity 8. ________ is a measure of individual's potential for learning new skills. [1]
a) Intelligence Test b) Personality Test
c) Interest Test d) Aptitude Test
9. The decision in financial management which influences the overall business risk complexion of the firm is called [1] ________.
a) Capital budgeting decision b) Financing decision
c) Working capital decision d) Dividend decision
10. The process that initiates implementation of plans by clarifying jobs, working relationships and effectively [1] deploying resources for attainment of identified and desired results is called:
a) Coordination b) Organising
c) Management d) Delegation 11. Decision to invest in fixed assets must be taken very carefully as the investment is usually quite large. Such [1] decisions once taken are irrevocable except at a huge loss. Such decisions are called ________.
a) Working capital decisions b) Capital budgeting decisions
c) Financing decisions d) Dividend decisions
12. Statement I: The objective of method study is to minimise the cost of production and maximise the quality and [1] satisfaction of the customer. Statement II: The objective of motion study is to determine the number of workers to be employed; frame suitable incentive schemes and determine labour costs.
a) Both the Statements I and II are not correct. b) Both the Statements I and II are correct.
c) Statement II is correct and Statement I is not d) Statement I is correct and Statement II is not correct. correct. 13. ________ is a part of capital market. [1]
a) Primary Market b) Secondary Market
c) Call Money d) Primary and Secondary Market
2/6 14. Which of the following statement is false? [1] a. To see whether plans are being implemented and activities are performed according to schedule is a part of the planning process. b. Planning requires logical and systematic thinking rather than guess work or wishful thinking. c. Planning is an exclusive function of top management. d. None of these
a) option (a) b) option (d)
c) option (b) d) option (c)
15. To the extent a firm avails the credit as purchases, the working capital requirement is ________. [1]
a) reduced b) constant
c) zero d) increased 16. A Treasury bill is an instrument of ________. [1]
a) Interest b) Dividend
c) Short term debt d) Long term debt
17. Middle-level management consists of: [1]
a) Supervisor b) Chairman
c) Finance Manager d) President
18. ________ detail the exact manner in which any work is to be performed. [1]
a) Methods b) Policies
c) Rules d) Procedures 19. Mr. Raghav, Finance manager of Manav InfraTech Pvt. Ltd., prepared a detailed plan of financial needs of the [1] firm in coming six months and the sources from where funds will be acquired to meet out these needs as company is planning to open a new branch in other states of India. Identify the financial concept discussed here:
a) Working capital b) Business cycle
c) Financial planning d) Capital structure
20. Which of following is a function prerequisite for controlling? [1]
a) Staffing b) Directing
c) Planning d) Organizing 21. What is meant by management as an art? Explain with the help of any three features. [3] 22. Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for itself and [3] had been doing well. It was known for the timely completion of orders. The Production Manager, Ms. Kanta was efficiently handling the processing of the 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 a team because the behaviour of Umang Gupta was positive towards the employees of the organisation. Hence everyone
3/6 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. i. Identify the leadership style of Umang Gupta and draw a diagram depicting the style. ii. State any two values highlighted by the behaviour of Umang Gupta. 23. Sound financial management is the key to the prosperity of business. Explain. [3] OR “Cost of debt” is lower than the cost of “Equity share capital”. Give reason why even then a company cannot work only with the debt. 24. Manisha purchased a new car for ₹15 lakh, Immediately after the purchase, she noticed some defect in its [3] engine. Soon she contacted the dealer. But the dealer paid no heed to her complaint. Then she filed her complaint with the District Forum. She was not satisfied with the decision of the District Forum. She filed an appeal against this decision with the State Commission. She was not satisfied even with the decision of the State Commission. Now she challenged the decision of the State Commission before the National Commission. Manisha was not satisfied with the decision of the National Commission also. Tell whether Manisha can file an appeal in the Supreme Court. Clarify your answer. OR Explain the following Rights of Consumers: i. Right to safety; ii. Right to be heard. 25. An auto company C Ltd. is facing a problem of declining market share due to increased competition from other [4] new and existing players in the market. Its competitors are introducing lower-priced models for mass consumers who are price sensitive. For quality conscious consumers, the company is introducing new models with added features and new technological advancements. Questions 1. Prepare a model business plan for C Ltd. to meet the existing challenge. You need not to be very specific about quantitative parameters. You may specify which type of plan you are preparing. 2. Identify the limitations of such plans. 3. How will you seek to remove these limitations? OR Explain any three points of importance of the planning function of management. 26. Vikas was the Chief Operating Officer of Yalet Ltd., a company providing advanced software solutions to [4] Indian Defence Services. They had been carrying on business successfully for the last twelve years and earning enough profits. But from the last one year, they realised that though the business is getting big orders which are being fulfilled in time, even then the revenues kept on decreasing. Vikas was not able to find out where the problem was. He started keeping a close check on the progress of activities as he could sense that something was wrong. He wanted to take some action before any major damage could be done to the business. Vikas appointed a cyber security expert who monitored the company’s processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police. This created an atmosphere of order and discipline in the organisation and helped in minimising dishonest behaviour on the part of the employees. a. Identify the function of management highlighted in the above paragraph. b. Explain any four other ways in which this function of management may help the organisation.
4/6 OR “Planning is looking ahead and controlling is looking back”. Comment. 27. Explain the meaning of management principles and state how are they derived at. [4] 28. Describe the role of motivation in directing function of management. [4] 29. What is meant by ‘money market’? Briefly explain the concept of ‘call money’. [4] 30. State how Self Regulation by Business and Business Association act as the ways of achieving the objectives of [4] consumer protection. 31. What is meant by Selection? Explain any five steps involved in the process of selection of employees. [6] OR Nisha Sethi was working as a Human Resource Manager in a famous consultancy firm, KLI Global Services. Her job included preparing job descriptions, recruitment, developing compensation and incentive plans and facilitating employee learning. They had entered into alliances with institutes to ensure continuous learning of their employees. With the jobs becoming more and more complex, KLI Global Services invested large amount of money in making the employees learn the skills necessary to complete the jobs. State by giving any five points, how this investment is likely to benefit the organisation? 32. After competing for his education, Arun joins his father in their family business of manufacturing cookware. As [6] a businessman, his father is rigid in his approach and has fixed ideas about various issues. He tends to maintain a distance from the factory workers. However, Arun is more receptive to the needs of the workers and doesn't seem to believe in any class differences. He believes that the prosperity of their business greatly depends upon the prosperity of their workers and vice versa. At the same time, he has a good understanding of the business environment. Therefore, he introduces a new range of green pans that provide a healthy cooking surface, as they are manufactured with all-ceramic or silicon coating and are considered safer than the traditional petroleum- based nonstick surfaces which may contain toxic substances. Although the new cookware range is highly-priced, he expects a ready market for it as both the purchasing power of people and their preference for better quality products has increased over the years. In the context of the above case answer the following: a. Identify the nature of management which is being reflected in the different styles of management in practice adopted by Arun and his father. b. Name and explain the related principle of scientific management. c. State the related dimensions of the business environment. OR India’s craft heritage is surviving because of its customs and traditions. Craft products made by craftsmen of Rajasthan, Gujarat, Assam, etc. are not only used in the country but are also exported to the USA, Germany, UK, France and other countries of the world. The volume of exports of these products gives India an advantage in the balance of payments and the much needed foreign exchange. The Prime Minister desires that the handicraft industry should be expanded by linking it with technology. The focus should be on changing the manufacturing process, ensuring durability and adopting innovations. Quoting the lines from the above paragraph, explain any four dimensions of the business environment. 33. A company X Limited manufacturing cosmetics, which has enjoyed a preeminent position in business, has [6] grown in size. Its business was very good till 1991. But after that, the new liberalized environment has seen the entry of many MNC's in the sector. As a result, the market share of X Limited has declined. The company had followed a very centralized business model with Directors and divisional heads making even minor decisions.
5/6 Before 1991, this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform. i. What organizing structure changes should the company bring about in order to retain its market share? ii. How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG. 34. R&T Reality, the property development arm of the construction and engineering giant R&T in a recent report to [6] the media shared that it is betting on bigger and better projects providing greater benefits to the customers, lower prices and faster execution to boost its growth. The spokesperson of the company informed the media that besides the innovative features, quality and brand, the fair pricing followed by the company is also a hit with the buyers. He said that the company is also focusing on accurate, speedy and timely delivery. Proper communication with the market was being maintained through advertising. Even dealers were to be offered incentives to boost the sales. The above para describes the combination of variables used by R&T Reality to prepare its market offering. Identify and explain the variables.
