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 Series ARSP/06 Set ~ 6
Roll No. Q.P Code 15/6/6
Candidates must write the Q.P Code
on the title page of the answer-book.

 Please check that this question paper contains 07 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

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 distinguishes a successful manager from a less successful one is the ability to put the principles into [1]
practice. Which aspect of the nature of management is highlighted in the above statement?

a) Management as an art b) Management is an intangible force.

c) Management as a profession d) Management as a science

2. External environment trends and changes will provide ________. [1]

a) Less Competition b) Goodwill

c) Profits d) Threats
3. Nowadays women are very health conscious which is witches giving rise to increasing demand for Organic [1]
products. This statement is related to the factor of business environment is:

a) Legal environment b) Technological environment

c) Social environment d) Political environment

4. Which of the financial decisions is about the quantum of finance to be raised from various longterm sources? [1]

a) Investment b) Capital

c) Dividend d) Financing
5. Management by exception refers to: [1]
i. Significant deviation which goes beyond the permissible limit should be brought to the notice of the
management.
ii. Focuses on the key result areas.
iii. Comparison of actual performance with the standard.
iv. Measurement of the Company’s and its employees’ performance.

a) only iv b) ii and iii

 c) only i d) iii and iv
6. Highlight the feature of management depicted by the image given here. [1]

a) Goal-oriented b) Pervasive

c) Group activity d) Dynamic

7. It is necessary for an investor to obtain Certificate of Deposits for ₹ ________ lakh. [1]

a) 10 b) 50

c) 25 d) 5
8. In many organisations the top management plays an active role in taking all decisions while there are others in [1]
which this power is given to even the lower levels of management. Decision making authority is shared with
lower levels and is consequently placed nearest to the points of action. Identify the concept of management
highlighted by the phrase Decision making authority is shared with lower levels and is consequently placed
nearest to the points of action.

a) Authority b) Accountability

c) Decentralisation d) Delegation
9. Which of the following statements is incorrect? [1]
a. Marketing is a social process.
b. Focus of the marketing activities is on customer needs.
c. Marketing is merely a post production activity.
d. Marketing mix is a wider term than product mix.

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

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

10. Assertion (A): Art is the skillful and personal application of existing knowledge to achieve desired results. [1]
Reason (R): Science is a systematised body of knowledge that explains certain general truths or the operation of
general laws.

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. The accountability flows: [1]

a) In all directions b) Downwards

c) Upwards d) Horizontal
12. To be listed on OTCEI, the minimum capital requirement for a company is: [1]

a) Rs. 10 crores b) Rs. 25 crore

c) Rs. 5 crores d) Rs. 3 crores

13. Statement I: Marketing management is the art and science of choosing target markets and getting, keeping and [1]
growing customers through creating, delivering and communicating superior customer values of management.
Statement II: Marketing management involves performance of various functions such as analysing and
planning the marketing activities, implementing marketing plans and setting control mechanism.

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 d) Both the Statements I and II are correct.
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. Brooke Bond’s Red label, Green label and Yellow label is the best example of [1]

a) Grading b) Tagging

c) Branding d) Labelling
16. Liquidity states of the certificate of deposit which is more negotiable are considered as: [1]

a) team liquidity b) certified liquidity

c) lees liquid d) more liquid

17. Business environment is a group of ________ powers. [1]

a) special b) special and general

c) general d) static
18. Sumit has been using Smooth Shave, a famous shaving cream available in the market. On watching numerous [1]
advertisements in the television, he decided to try a new brand of shaving cream. When he went to the near-by
store to purchase the same, he saw shaving creams by other producers making similar claims. Hence, he could
not make up his mind as to which shaving cream to purchase. Which of the following objection to advertising is
being discussed in this case?

a) Confuses the buyers b) Adds to cost

c) Encourages sale of inferior products d) Undermines social values

19. Marketing can be best understood as: [1]
i. Pre-production activity
ii. Post-production activity
iii. Pre and Post production activity
iv. Selling activity

a) ii and iii b) i and ii

 c) only iii d) iv and i
20. What will be the corrective action for defective machinery? [1]

a) Repair or Replace the machine b) Sell at a profit

c) Sell at a loss d) Sell at the book value

21. Dev is a versatile manager. However, due to the nature of his job most of the time of his day is occupied with [3]
planning. One day his friend who runs an advertising company calls him for a lunch. Dev finds his friend very
busy as his friend tells him that the company he is working in is very busy these days in finding the right person
for the right job. Soon Dev leaves after having a detailed discussion with his friend. During that lunch he learnt
many things from his friend and applied the things learnt in his own company. The best outcome of their
discussion was the adaptable nature of Dev's company, due to the application of this learning. The company
earned more revenue by the end of the year.
Which level of management Dev belongs to? What function was performed by his friend's company? Which
particular characteristic of management was achieved by Dev for his company? Also identify the concerned
lines.
22. Shiv Shakti Ltd. keeps constant vigil over the business environment and studies it. During the course of this [3]
study, he noticed a considerable fall in bank interest rate. On the basis of this information, CEO of the company,
Mr. Rajan Aggarwal anticipated the rapid rise in demand for his products. Consequently, the company decided to
produce more than normal production. The company also decided to take special care of the health and safety of
the people and to keep the profits at a low level while fixing the price of the products.
To achieve its objective of an increase in production, the company will need 50 additional workers. Similarly,
the company will also require some more managerial staff. Regarding appointment of the employees, it is the
desire of the company to recruit such like youngmen as are fully familiar with the new and modern ideas. No
matter they may have less experience. Mr. Ram Oberoi, H.R. Manager of the company, arranged the requisite
staff. It was brought to the notice of Mr. Oberoi that some of the machine operators needed training. He set-up a
training centre for this purpose. In this training centre, a trainer imparted them one-month training. Thus by
adopting these measures, the company achieved its objective of large-scale production.
a. Quoting the lines identify the component of the business environment.
b. Quoting the lines identify the objective of management.
c. Company will get different kinds of persons from which sources of recruitment?
d. Which training method is being used by the company?
OR
Explain any three benefits of training to the organisation.
23. David and Tom are managers in the same organization heading different units. While discussing about the [3]
functions of management, David says that “Planning is looking ahead whereas controlling is looking back”. But
Tom says” You are wrong because planning is looking back whereas controlling is looking ahead”. Both are
giving reasons in favour of their statements. Explain the possible reasons given by both and justify who is
correct.
24. Vikrant Electronics Ltd. invited subscriptions from the public through the issue of prospectus. Ekta applied for [3]
1000 shares but was allotted only 500 shares by Vikrant Electronics Ltd. After six months she decided to sell
250 of these shares.
a. Which market Ekta should approach?
 b. State any four advantages of selling through such a market.
OR
Aekaa Limited is dealing in all types of cosmetic products. It is enjoying increased demand for its product during
the last few years. For the purpose of expansion the company needs ₹100 crores as additional capital. The company
decides to raise funds through equity shares. Ved Kapoor, the finance manager of the company recommended that the
shares may be sold through issuing houses or brokers. Identify and explain the method recommended by Mr. Kapoor
through which the company can raise additional funds for expansion purposes.
25. Describe why staffing is taken as a part of human resource management? [4]
OR
Identify and explain two sources of recruitment when the present employees are insufficient to fulfil the
specifications of the job to be filled.
26. After pursuing a course in gemology from Australia, Raj started a workshop in Surat to supplement his father's [4]
jewellery business in Delhi. He is used to speaking in English but the local skilled workers understand only
Hindi and Gujarati. Hence, he started facing problems in the work due to miscommunications between him and
the workers. As a result, he is not able to get the jewellery designs made in the desired manner and getting them
redesigned turns out to be very expensive.
In context of the above case:
a. Define the term 'communication'.
b. Identify the type of communication barrier being referred to in the above paragraph.
c. Suggest any four measures by which he can improve his communication effectiveness.
OR
Identify the function of management which is concerned with instructing, guiding, counselling, motivating and
leading people in the organisation to achieve its objectives. Also, state any two features of the identified function of
management.
27. Z Limited is a Multi-national Company. It has two Divisions: Plastic Utensils and Steel Utensils. Ankna Goyal [4]
is the Head of Plastic Division, while Sunali Rathi is the Head of Steel Division. Ankna is in the habit of taking
all the decisions all by herself. She is of the view that her subordinates cannot take the right decision. This type
of thinking has resulted in the fall of morale of the employees of her department. In order to boost the morale of
the employees, she placed a proposal before the Board of Directors for the increase in their salary. The Board of
Directors accepted it.
Sunali's nature is quite opposite of Ankna’s. She has full faith in her subordinates. She takes every decision after
consulting her subordinates. Consequently, the morale of her employees has gone up. It has directly influenced
their performance. In order to further improve the performance of his employees, he has ensured promotion to
those who succeed in achieving the target fixed by him.
a. Identify the organisational structure adopted by the company.
b. Which leadership style is being followed by both the Divisional Managers.
c. On which motivators is the company focusing its attention?
d. Which value is the Division of Steel Utensils delivering to its employees?
28. What is meant by the financial planning? [4]
29. Explain the following as factors affecting financing decision [4]
i. Cost
ii. Cash flow position of business
 iii. Control considerations
iv. Floatation cost
30. Pooja purchased a packet of juice from the local grocery shop. The information provided on the packet was not [4]
clear. The information provided on the packet was not clear. She fell sick consuming it. She filled a case in the
District Forum under Consumer Protection Act and got the relief.
a. Identify the important aspect which has been neglected by the marketer in the above case.
b. Explain briefly the functions of the aspect identified in (a) above.
31. Explain the following techniques of scientific management: [6]
i. Differential Piece wage system
ii. Time Study
iii. Method Study
OR
The principle of equity today does not apply to wages alone. Value to the customer, care for the environment,
dealings with business associates would all come under the purview of this principle. Today, we find that Public
Sector Undertakings (PSUs) have developed entire townships as, for example, BHEL has developed Ranipur in
Hardwar (Uttaranchal).
Similarly, Shri Mahila Griha Udyog Lijjat Papad is famous for its quality Papad throughout the world. The
organisation which started with a modest loan of ₹ 80 now has a turnover of over ₹ 301 crores. Its exports exceed ₹
10 crore. The company has at least 61 branches. The company is synthesis of three core values(or concepts), namely
the concept of business, the concept of family and the concept of devotion. All its dealings are carried out on a sound
and pragmatic footing-production of quality goods and at reasonable prices.Besides, its member-sisters donate
collectively for good causes from time-to-time according to their capacity. All the affairs of the institution are dealt
with in a manner similar to that of a family carrying out its own daily household chores. For the member-sisters,
employees and well-wishers, the institution is never merely a place to earn one's livelihood - it is a place of worship
to devote one's energy not for his or her own benefits but for the benefit of all. In this institution work is worship. The
institution is open to everybody who has faith in its basic concepts.
a. To what aspect of the significance of principles of management would you attribute the endeavours of BHEL and
Shri Mahila Griha Udyog Lijjat Papad?
b. Explain any four other points of significance of principles of management.
32. After completing her studies in product design, Sara wishes to start her own business to design products to cater [6]
to the mobility and communication requirements of persons with special needs. She told her friend that she
wanted to focus on supplying high quality products at affordable prices. The Unique Selling Proposition (U.S.P)
of the products would be sensitivity of the challenges and needs of the differently abled people.
She wants to employ only differently abled persons in her factory and sales offices across the country. This
decision of Sarita provides the base for interpreting her strategy. This also defines the broad parameters within
which the company may recruit the persons. Sara has also to decide about the exact manner and the
chronological order of how the selection of the differently abled applicants will be done.
In the above lines, Sara is discussing about one of the functions of management. This function has several types.
Identify and explain the types Sara is discussing in the above lines.
OR
After completing a diploma in Bakery and Patisserie, Payal sets up a small outlet at Goa Airport to provide a healthy
food option to the travellers. To begin with, she has decided to sell five types of patties, three types of pizzas and low
 sugar muffins in four flavours. Thus, by deciding in advance what to do and how to do, she is able to reduce the risk
of uncertainty and avoid overlapping and wasteful activities. But sometimes her planning does not work due to some
unavoidable circumstances like cancellation of flights due to bad weather conditions, government alert, etc. which
adversely affects her clientele.
In the context of the above case:
a. Identify and explain the points highlighting the importance of planning mentioned in the above paragraph.
b. Describe briefly the limitation of planning which adversely affects Payal's business.
33. Aman Chadha started 'Bulls Eye' a company for providing cybersecurity solutions to businesses. Its objective is [6]
to prevent, detect and respond to cyber-attacks and protect critical data. He was a hardworking software engineer
and an expert in cybersecurity. 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 Defence. 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.
34. Nischay, after completing his masters in computer engineering decided to start his own business. He visited his [6]
uncle Mr.Jaiprakash who has been running a successful business in web designing. He shared with Nischay that
the main reason for his success in the business lies in his approach to building a lifetime relationship with his
clients. Therefore, his business is not only restricted to designing web sites according to the specifications of the
clients but also providing continuous online assistance to them and handling their grievances effectively and
doing all this at a profit. He provides these services at competitive prices. Anybody interested in getting web
solutions can contact him through his website. Moreover, whenever the market is sluggish he tries to create
demand by offering short-term incentives to the buyers.
In the context of the above case:
a. Define the term 'Marketing Management'.
b. Briefly explain the various elements of the marketing mix being pursued by Mr. Jaiprakash by quoting lines
from the para.