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 Series ARSP/02 Set ~ 2
Roll No. Q.P Code 15/2/2
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 06 printed pages.

 Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
 Please check that this question paper contains 34questions.
 Please write down the serial number of the question in the answer-book
before attempting it.
 15 Minute times has been allotted to read this question paper. The question
paper will be distributed at 10:15 a.m. From 10.15 a.m to 10.30 a.m, the students
will read the question paper only and will not write any answer on the answer –
book during this period.

Business Studies

Time allowed: 3 hours Maximum Marks: 80

1
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. The sales department accuses production department for the poor sales due to late delivery of goods, production [1]
department accuses purchase department for not delivering the raw material in time and purchase department
accuses finance department for not releasing funds on time. Which quality of management is missing in the
above situation?

a) Poor hierarchy b) Cooperation

c) Planning d) Coordination
2. Booking of Railway tickets through the internet from home or office is an example of ________. [1]

a) Economic Environment b) Political Environment

c) Technological Environment d) Legal environment

3. Liberalization is: [1]
i. free flow of goods and services between different countries of the world
ii. Increase participation of the private sector
iii. reduction in formalities, taxes, and tariff
iv. unity among political parties

a) iii and iv b) only iii

c) ii and iii d) i and ii

4. ________ normally does not causes a dilution of control. [1]

a) Debt b) All of these

c) Reserves and Surplus d) Equity

5. Setting a standard time, say, 6 hours to perform a task is an example of ________. [1]

a) Deviation analysis b) Qualitative Standards

 c) Qualitative and Quantitative Standards d) Quantitative Standards
6. It is not a separate function of management but its very essence. Identify it. [1]

a) Efficiency b) Effectiveness

c) Cooperation d) Coordination
7. Sensex is dependent on ________ companies. [1]

a) 100 b) 50

c) 500 d) 30
8. Raman, Arun and Rahul have decided to start a business of manufacturing toys. They identified the following [1]
main activities which they have to perform:
(i) Purchase of raw materials, (ii) Purchase of machinery, (iii) Production of toys, (iv) Arrangement of finance,
(v) Sale of toys, (vi) Identifying the areas where they can sell their toys and (vii) Selection of employees
In order to facilitate the work they thought that four managers should be appointed to look after
(a) Production, (b) Finance, (c) Marketing, (d) Personnel.
Identify the function of management involved in the above-mentioned para.

a) Organising b) Controlling

c) Staffing d) Planing
9. Which of the following statement is true? [1]
a. Needs and Wants are one and the same thing.
b. Marketing is a merely a post-production activity.
c. Only a product or a service can be marketed.
d. Anybody, who takes more active role in the exchange process will be taken as the marketer.

a) Option (d) b) Option (c)

c) Option (b) d) Option (a)

10. Assertion (A): Staffing is finding the right people for the right job and is an important aspect of management. [1]
Reason (R): Staffing makes sure that right people with the right qualifications are available at the right places
and times to accomplish the goals of the organisation.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

11. ________ is the process of grouting similar activities together and creating departments. [1]

a) Departmentalisation b) Delegation
 c) Centralisation d) Division of work
12. Instruments with a maturity period of less than one year are traded in: [1]

a) Money market b) Capital market

c) Stock exchange d) NSEI (National Stock Exchange of India)

13. Statement-I: The concept of product relates to not only the physical product but also the benefits offered by it [1]
from customer's point of view.
Statement-II: The concept of product does not include the extended product by way of after sale services,
availability of spare parts, handling complaints etc.
Choose the correct option from the following:

a) Statement-I is correct and Statement-II is b) Statement-I is incorrect and Statement-II is

incorrect correct.

c) Both Statement-I and Statement-II are d) Both Statement-I and Statement-II are
incorrect. correct.
14. Choose the correct matches [1]

(i) Liberalisation (a) Relaxation in tarrifs

(ii) Globalisation (b) Disinvestment in public sector

(iii) Privatisation (c) World level production

a) (i) - (c), (ii) - (b), (iii) - (a) b) (i) - (b), (ii) - (a), (iii) - (c)

c) (i) - (a), (ii) - (c), (iii) - (b) d) (i) - (a), (ii) - (b), (iii) - (c)
15. Which of the following factor affects the price determination? [1]

a) Product cost b) All of these

c) Demand d) Government and legal regulations

16. Money market instruments issued on behalf of the Central Government: [1]

a) Treasury Bill b) Commercial Paper

c) Call Money d) Commercial Bill

17. Population is a component of the total ________ environment, while composition of population is component of [1]
________ environment.

a) social, economic b) natural, legal

c) technology, political d) ecomonic, social

18. Which of the following product-related decisions helps in providing basis for distinguishing the product of a [1]
firm with that of a competitor which in turn helps in building customer's loyalty and in promoting its sales?

a) Pricing b) Branding

c) Promotion d) Advertising
19. A gift of trolley with the purchase of inverter by Okaya company is an example of which sales promotion [1]
technique?

a) Discount b) Product combination

 c) Refund d) Rebate
20. An efficient control system helps to [1]

a) Accomplishes organisational objectives b) Judges accuracy of standards

c) All of these d) Boosts employee morale

21. Elpis Beta Inc. decide to go for perfect coordination in the various aspects of the company. They focus on [3]
synchronization of all the activites of the organisation. For this they know coordination will be the key. At the
stage of thinking of what is to be done throughout the year they decide to take into consideration the harmony
between the goals of the organisation and those of the individual departments. When they hire employees they
pay them only after evaluating their worth in terms of how efficient they are. Finally when the last month of
production comes they, time and again check the deviation between the set targets and the actual production
done.
In the above paragraph the main focus is on coordination. However various functions of management also come
into picture. You have to identify the three functions of management highlighted above in which coordination
can be seen.
22. Managing Director of Rathi India Limited convened a meeting of the employees working at all managerial [3]
levels. Two main issues were discussed in the meeting. First, how the employees should perform all those
activities more efficiently which are being carried out currently. Second, how to enable the employees to take
upon itself big responsibilities in the future. Through the medium of the meeting, the company was seeking the
possibilities of its extension. When the managing director felt satisfied that the employees were taking interest in
both the issues, then he convened a meeting of the board of directors to give final shape to the decision regarding
extension of the company.
i. Identify different managerial levels.
ii. Identify and explain those concepts of management which relate to both the issues discussed in the meeting.
OR
Explain any three advantages of external sources of recruitment.
23. Mr. Robert is appointed as a factory manager in a gel-pen manufacturing company. He was given a target of [3]
producing one lac gel-pens per month. He knew that the essence of management is to achieve desired results but
he does not know how to ensure the work goes on according to plans. Guide him by explaining the process so
that he is able to achieve the desired results.
24. Give one regulatory function of SEBI. [3]
OR
Mr. Gupta has been retired from the job and has received a sizeable amount as a retirement benefit. He consults his
friends and family members about the investment opportunities. On their advice, he decides to invest ₹ 20 lakh in the
securities provided. These securities are issued by the company for the first time.
Which part of the capital market Mr. Gupta should approach? Explain the features of such a market.
25. Name and give the meaning of the concepts that are highlighted in the following statements: [4]
a. It improves the performance of employees on the current job or prepares them for any intended job.
b. It not only improves the job performance of the employees but also brings about growth of the personality.
OR
The staffing function is performed by every manager and not necessarily by a separate department. Explain.
26. Kunal joined as a shop level manager in the Production department of a textile company in the year 2005. [4]
 Because of his good work, he became the Deputy Production Manager of the company in the year 2010. He had
status and prestige and was well-respected by all in the company. On 1st March, 2019, he was promoted as the
General Manager of the company. 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 realised that people’s behaviour is based on
their needs and the manager can influence the behaviour of his employees by satisfying their needs.
a. One of the assumptions of Need Hierarchy theory is stated in the above paragraph. State the other three
assumptions of this theory.
b. State the needs of Kunal which are being satisfied through promotion.
OR
In an organisation all the employees take things easy and are free to approach anyone for minor queries and
problems. This has resulted in everyone taking to each other and thus resulting in inefficiency in the office. It has also
resulted in loss of secrecy and confidential information being leaked out.
a. Identify the type of communication discussed above.
b. State any two negative aspects of the type of communication identified in part (a).
c. What system of communication do you think the manager should adopt to improve communication?
27. Pratap Singh is the Chief Executive Officer of Nissar Enterprises. It is an automobile parts manufacturing [4]
company. The enterprise has a functional structure, in which jobs of similar nature have been grouped together
as Production, Finance, Marketing and Human Resource. Nissar Enterprises has its manufacturing unit at
Manesar. The factory has been plagued with many problems for a long time which was in the knowledge of the
Production Manager, Varun Sharma. The workers had internal differences. Time and again, there were
misunderstandings between the management and the workers. Keeping the problems in mind, Varun Sharma
appointed, Siyaram Singh who had 14 years of experience of working with the actual work force and passing on
instructions of the middle management to the workers. Siyaram Singh met Varun Sharma to understand what the
management wanted. Thereafter he met the workers and conveyed the ideas of management to them. He also
promised the workers to convey their problems to the management. In this way, he cleared the misunderstanding
between the management and the workers. He also sorted out internal differences and was able to unite the
workers within a month of his joining. His work was acknowledged and he was given a certificate of good
performance along with 10% increase in salary.
Explain the incentives provided to Siyaram Singh.
28. Identify and state any three factors affecting the decision which involves determining the relative proportion of
[4]
the use of different sources in raising funds.
29. Manish is engaged in the business of manufacturing garments. Generally, he used to sell his garments in Delhi. [4]
Identify the working capital requirements of Manish giving reason in support of your answer. Further, Manish
wants to expand and diversify his garments business. Explain any two factors that will affect his fixed capital
requirements.
30. Explain the following redressal mechanisms available to a consumer under The Consumer Protection Act, 2019: [4]
i. District Commission
ii. National Commission
31. Name and explain that principle of Fayol which suggests that communication from top to bottom should follow [6]
the official lines of command.
OR
 Explain the importance of management principles.
32. State any three advantages and any two limitations of Planning. [6]
OR
Defining 'organizational objectives' as the first step in the process of planning. Explain in brief the other steps of this
process.
33. A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation [6]
culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to
changing business environment. The work force is also not motivated since they cannot vent their grievances
except through formal channels, which involve red tape. Employee turnover is high. Its market share is also
declining due to changed circumstances and business environment. You are to advise the company with regard to
change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in
terms of benefits it will derive from the changes suggested by you.
34. After doing a diploma in entrepreneurship, Farihad started his own confectionary business. He started doing a lot [6]
of hard work and used the recipes taught by his grandmother in various preparations. He also learnt many
recipes from online sites and television programmes. He decided to keep the price of the products low initially
and also informed his customers about the goodness of the items sold by them. However, he didn't mention on
the package of each item weather it contained eggs or not. As a result, vegetarian people became hesitant in
buying things from his shop as they had to verbally inquire from him about the inclusion of eggs in the
preparation of various items.
In the context of the above case:
a. Name the important aspect related to the marketing of products which has been ignored by Farihad.
b. Explain briefly any three functions performed by the aspect as identified in part (a).
c. Mention the right of consumer being violated by Farihad.