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 Series ARSP/07 Set ~ 7
Roll No. Q.P Code 15/7/7
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. Directors of Archit Ltd. assigned the task of implementing the plans and policies framed by the board to all the [1]
departmental heads. Departmental heads appointed supervisors, superintendent, executives, etc. so that work can
be assigned to workers as per the plan. Supervisors kept a check on workers as per the plan.
Identify the feature of management highlighted in above para.

a) Management is a goal-oriented process b) Management is a dynamic function

c) Management is a group activity d) Management is multi-dimensional

2. With the introduction of a mineral water bottle in India Bisleri was able to capture the big market share in India. [1]
Which importance of the business environment is the highlight in the above case?
i. Helps in tapping resources
ii. Help in policymaking
iii. Improve performance
iv. Help to identify opportunity and getting a first-mover advantage

a) i and ii b) ii and iii

c) iii and iv d) only iv

3. Which of the following best indicates the importance of business environment? [1]

a) Improvement in performance b) Identification

c) Coping with rapid changes d) All of these

4. A decision to acquire a new and modern plant to upgrade an old one is a: [1]

a) None of the above b) Investment decision

c) Working capital decision d) Financing Decision

5. Management control is done by the ________. [1]
 a) Managers at Lower Level b) All of these

c) Managers at Middle Level d) Managers at Top Level

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. Accrual bond are also known as ________. [1]

a) Fixed interest Bonds b) Flate Rate Bonds

c) Low Interest Bonds d) Zero Coupon Bonds

8. In a school, twelve students work for the school library in the summer vacations. One afternoon they are told to [1]
unload a shipment of new releases, stock the bookshelves, and then dispose of all waste (packaging, paper etc).
One student supervises the work by grouping students, divides the work, assigns each group their quota and
develops reporting relationships among them. Identify the function of management highlighted above.

a) Organising b) Staffing

c) Directing d) Planning
9. Which of the following statement is false? [1]
a. The marketing concept cannot be considered adequate if we look at the challenges posed by social problems
like environment pollution, deforestation, shortage of resources, population explosion and inflation.
b. In all cases, the primary package is kept throughout the entire life of the product.
c. Most marketing firms give high importance to the fixation of price for their products and services.
d. A firm may sell its products at a price, which does not cover all the costs.

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

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

10. Assertion (A): Management tries to integrate the personal objectives of the employees with the organizational [1]
objectives.
Reason (R): Workers may lose interest in work if their objectives are neglected and it will be better if their
objectives are in the same line with that of organizational objectives.

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. Authority, responsibility and accountanbility are the elements of ________. [1]

a) Informal Organisation b) Decentralisation

 c) centralisation d) Delegation
12. Dipti has 1000 equity shares of a company. She wants to sell 500 of these shares. Which market should she [1]
approach?

a) Capital Market b) Stock Market

c) Money market d) Primary market

13. Statement I: Promotion mix refers to combination of promotional tools used by an organisation to achieve its [1]
communication objectives.
Statement II: Advertising creates a monologue and not a dialogue.

a) Statement II is correct and Statement I is not b) Both the Statements I and II are not correct.
correct.

c) Both the Statements I and II are correct. d) Statement I is correct and Statement II is not
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. Packaging has acquired great significance in the marketing of goods and services, because of: [1]

a) All of these b) Self-service outlets

c) Rising standards of health and sanitation d) Innovational opportunity

16. The new issues market is also known as: [1]

a) Money market b) Primary market

c) Secondary market d) Stock exchange

17. Globalisation is beneficial for firms because ________. [1]

a) It decreases the risk and uncertainty of b) It protects them against foreign competition.
operating in global market.

c) It increases the risk and uncertainty of d) It opens up economy to the world by

operating in global market. attaining international competitiveness.
18. In a popular advertisement on radio and television, Bollywood actress Vidya Balan talks about cleanliness and [1]
hygiene. The idea behind is to create awareness regarding having a toilet in each house instead of going out in
the open. She included the advertisement with a punchline Jahan Soch Vahan Shauchalaya.
Identify what is being marketed by the famous actress in the above case.

a) Information b) Services

c) Experiences d) Idea
19. ________ is called marketeer. [1]
 a) Seller b) Satisfaction Provider

c) Service Provider d) Satisfaction Seeker

20. What will be the corrective action for defective material? [1]

a) Change in method of production b) Change in Quantity

c) Change in quality specifications of the d) Change in Price

material used
21. In a country named Wonderland acting is considered as a profession. Whosoever has to become an actor has to [3]
read books written about acting. These books tell the nuances of acting and without reading these books one
can't be considered as an actor. To judge the ability of an actor an examination is conducted and then a degree is
assigned to the qualified persons who can then act in films. There is also a body which provides membership to
all actors. There are about thirty thousand actors in wonderland who are compulsorily members of this
organisation.
What are the three features of profession highlighted here? Also identify the lines highlighting these features?
22. Explain Vestibule Training as a method of training. [3]
OR
There are two sources for recruitment and in one of them; employees are vertically shifted to a higher position. Mr.
Yogesh, an employee of Pluto Ltd. has been vertically shifted from the post of assistant general manager. Now, he has
comparatively greater authority, responsibilities, and salary.
a. Identify and state the source under which employees are vertically shifted to higher positions.
b. Name the other source under which employees are moved horizontally.
c. Identify the methods of recruitment highlighted in the following statements:
i. Trainees work in some factory or office to acquire practical knowledge and skills along with regular studies.
ii. The trainee learns under the guidance of a master worker.
iii. Trainees learn on the equipment they will be using, but training is conducted away from the actual work floor.
23. Mr. Nath, a recently appointed production manager of Suntech Ltd., has decided to produce jute bags instead of [3]
plastic bags as these are banned by the government. He set a target of producing 1000 jute bags a day. It was
reported that the employees were not able to achieve the target. After analysis, he found that employees were
demotivated and not putting in their best for achieving the target. Mr. Nath's behavior is good towards the
employees. His attitude is always positive. So, he announced various incentive schemes for the employees like:
Installing awards or certificates for best performance
Rewarding an employee for giving valuable suggestions
Congratulating the employees for good performance
a. Identify the functions of management highlighted in the above paragraph.
b. State the incentive under which the employee is motivated.
c. State any two values which the production manager wants to communicate to society by his work and
behavior.
24. Give the meaning of the following money market instruments [3]
i. Treasury bill; and
ii. Call money
OR
Promotion of fair practices and code of conduct in securities market is a function performed by Securities and
 Exchange Board of India.
State any two other functions of the same category.
25. Briefly state why recruitment is regarded as a positive activity and selection a negative process. [4]
OR
Mr. Gaurav is working as a personnel manager of Nyonika Electronics Ltd. of Noida. He is a very experienced
person. His intention is always on the people with new and modern ideas to enter the company. He does not like old
people to be promoted to higher positions.
i. Name the type of sources of recruitment Mr. Gaurav favours.
ii. Name the type of sources of recruitment Mr. Gaurav does not like.
iii. Do you agree that the type of sources of recruitment has no limitations? Describe.
26. ‘AS Environs Ltd’ is dealing in Environment-Consultancy. To get the business, the team leader and his team [4]
used to travel to different states to give a presentation to their clients. As per the policy of the company, the team
leader used to travel by air whereas his team travelled by road/train. It was not only time consuming, but also at
times forced the female team members to travel alone.
As a result, the subordinates were not acting in a desired manner to achieve organisational goals. The CEO of
the company came to know about it. He called the team leader, discussed the matter with him and decided to
change the travel policy of the company. It was decided that in future all the members including the leader would
travel together and usefully utilise the travelling time in discussion about the presentation to be given to the
clients. This made a positive impact and H every member of the team started acting in a manner as desired by
the team leader.
State the features of the element of the function of management used by the CEO.
OR
Mukesh is working under his superior Neeraj. He always communicates useful and suggestions to his superior
regarding reduction of cost improvement in the product, etc. Neeraj implements his suggestion and has always found
favourable results, but he never appreciates Rakash for his suggestions. Now Rakesh decides not to communicate any
suggestion or idea to Neeraj. Identify the factor which acts as a communication barrier. Explain three other factors of
the same group of communication-barriers.
27. 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.
28. What is meant by Investment Decision? State how Long term Investment Decision and Short term [4]
Investment Decision affect the business.
29. Aval Ltd. is engaged in the business of export of canvas goods and bags. In the past, the performance of the [4]
company had been upto the expectations. In line with the latest demand in the market, the company decided to
venture into leather goods for which it required specialised machinery. For this, the Finance Manager Prabhu
prepared a financial blueprint of the organisation’s future operations to estimate the amount of funds required
 and the timings with the objective to ensure that enough funds are available at right time. He also collected the
relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the
availability of funds from the internal sources of the business. For the remaining funds, he is trying to find out
alternative sources from outside.
a. Identify the financial concept discussed in the above paragraph. Also, state the objectives to be achieved by
the use of financial concepts so identified. (Financial Planning).
b. There is no restriction on the payment of dividends by a company. Comment. (Legal & Contractual
Constraints).

30. a. Give the meaning of a consumer as per the Consumer Protection Act, 2019. [4]
b. State when can a grievance be directly redressed in State Commission and National Commission by the
aggrieved party.
31. Explain the following principles of Fayol with the help of one example of each. [6]
i. Division of work
ii. Unity of direction
OR
Explain the following principles of management:
i. Discipline
ii. Unity of Command
iii. Unity of Direction
32. All the available alternatives are evaluated in the light of their feasibility and consequences. This is one of the [6]
steps in the process of planning. Explain the steps followed by this.
OR
Explain any four points of importance of planning function of management.
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. Two years ago Suruchi completed her BBA course. As she had knowledge of the business she began taking [6]
interest in her parental business. Her father used to do the wholesale business of wheat. Suruchi suggested to her
father why not they should also go in for the retail business of wheat. Her father agreed. He entrusted full
responsibility for the new business to Suruchi. First of all, she conducted a market survey and tried to obtained
information regarding the kind of wheat, price, and weight of its packing, that the people liked desi wheat the
most. Many varieties of wheat were already available in the market. In order to show that her wheat was distinct
from that of other traders, she gave it the name of Sharbati Healthy Food. Wheat was packed in attractive plastic
bags. Weight of each packed wheat bag was either 10kg and 20kg so that it is easily carried and moved from one
place to the other. Suruchi pasted a label on each bag giving full information about the wheat packed in. While
deciding the price of her product she kept in mind, the expectation of the people, price of competitor's products
and reasonable rate of profit. Thus a new business came into being. Within a few days, Suruchi was known as a
successful trader.
With reference to the above paragraph identify four functions of marketing.