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 Series ARSP/09 Set ~ 9
Roll No. Q.P Code 15/9/9
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

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. Elpis Group of companies decided to donate 2% of its sales to Child Rights and You (CRY) for improving the [1]
condition of children in India. This initiative by the company was highly appreciated by the public and their
sales increased by 10%. Identify the objective of management depicted in the given case.

a) Governmental Objectives b) Organisational Objectives

c) Personnel Objectives d) Social Objectives

2. Which of the following statements is Not true for primary market? [1]

a) There is no fixed Geographical location. b) Only buying of securities takes place,

securities cannot be sold there.

c) It directly promotes capital formation. d) Prices are determined by demand and

supply of the security.
3. What resources are specially kept in view in planning? [1]

a) Unlimited resource b) Limited resource

c) Abundant resource d) Both Limited and unlimited resource

4. Which of the following is not a factor affecting Financing Decision of a Company: [1]

a) Risk b) Cash flow position of a company

c) Cost d) Growth opportunities

5. Controlling is related to ________. [1]

a) Results b) Managers

c) Individuals d) Things
6. The following pictorial presentation highlights violation of one of the principles of management. [1]
 Identify the principle not followed in the given picture.

a) Cooperation not individualism b) Subordination of individual interest to

general interest

c) Initiative d) Equity
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. While designing the organisational structure, managers undertake an analysis of the decisions and the decision- [1]
making levels, activities as well as relationship among them with a view to evolving the horizontal and vertical
dimensions of the structure. Thus, various job positions are created. Clearly, performance of each job
necessitates the appointment of a person with a specific set of educational qualifications, skills, prior experience
and so on. Identify the step of staffing function of management highlighted above.

a) Estimating manpower requirements b) Selection

c) Recruitment d) Placement and Orientation

9. Which of the following statements is incorrect? [1]
i. Financial planning is the process of estimating the fund requirement of a business and specifying the sources
of funds.
ii. The objective of financial planning is to ensure that enough funds are available at right time.
iii. Financial planning is a substitute of Financial Management.
iv. None of the above

a) Option (iv) b) Option (i)

c) Option (ii) d) Option (iii)

10. Assertion (A): Accountability flows upward. [1]
Reason (R): Subordinate will be accountable to his superior.

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 function of Stock Exchange which helps in creating a continuous market where securities are bought and [1]
sold is:

a) Pricing of securities b) Providing liquidity and marketability to

existing securities

c) Contribution to economic growth d) Safety of transactions

12. Cars Udyog Ltd. plans to manufacture solar cars in its new plant. It has an offer from Toyota for collaboration. [1]
What impact will the collaboration have on the requirement of fixed capital for Cars Udyog Ltd.?
 a) Decrease the requirement for fixed capital b) Vary the requirement for fixed capital

c) No change in fixed capital needed d) Increase the requirement for fixed capital
13. Statement I: The Chapter V of the Consumer Protection Act of 2019 provides for a mediation process for [1]
settlement of disputes at three levels - National, State and District with all three being attached to the respective
commissions.
Statement II: Either on the first hearing or at any later stage, it appears to district commission that there exists
elements of settlement which may be acceptable to the parties, it may direct them to give their consent for
settlement of dispute through mediation within forty five days.

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

c) Statement I is correct and Statement II is not d) Statement II is correct and Statement I is not
correct. correct.
14. Planning ensures that the goals are clearly stated, so that they act as a guide for deciding what action should be [1]
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. Which of the following statements does not highlight the importance of financial planning? [1]

a) It provides a link between investment and b) Detailed plans of action prepared under
financing decisions on a continuous basis. financial planning increase waste,
duplication of efforts and gaps in planning.

c) It helps in avoiding business shocks and d) It helps in forecasting what may happen in
surprises and helps the company in future under different business situations.
preparing for the future.
16. Statement I: Advertising is a paid form of communication. [1]
Statement II: Advertising is a personal method of promotion.

a) Statement I is correct and Statement II is not b) Statement II is correct and Statement I is not
correct. correct.

c) Both the Statements I and II are correct. d) Both the Statements I and II are not correct.
17. It involves application of high order thinking skills and intellectual faculties, involving vision and [1]
foresightedness to decide the things to be done in the future.
Which feature of Planning is stated in the above line?

a) Planning is futuristic. b) None of these.

c) Planning is pervasive. d) Planning is a mental exercise.

18. Match the example in column I with the function in column II: [1]

(a) Planning (i) Matching outcomes with targets

(b) Organising (ii) Objectives

(c) Directing (iii) Resources for implementation

 (d) Controlling (iv) Supervision and motivation

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

c) (a) - (ii), (b) - (iii), (c) - (iv), (d) - (i) d) (a) - (i), (b) - (ii), (c) - (iii), (d) - (iv)
19. 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

20. What is the last step in controlling process? [1]

a) Measurement of actual performance b) Comparing actual performance with

standards

c) Taking corrective action d) Setting Performance Standards

21. 'Management seeks to achieve certain objectives which must be derived from basic purpose of the business'. In [3]
the light of the above statement. explain organisational and social objectives of management.
22. Balvinder is the Production Manager of Pramod Tea Company in Guwahati. He gives orders to his [3]
subordinates and expects that they obey those orders. He does not consult them nor encourage them to
participate in decision making.
i. Identify and state the leadership style adopted by Balvinder.
ii. When can this style be effectively used by a manager? State.
OR
State any three features of directing function of management.
23. State any three factors that affect the Dividend Decision of a company. [3]
24. Himanshu purchased a new car from ‘Galaxy Motors’ for Rs.25 lakhs. He was offered free insurance for the first [3]
year and three free servicing to be availed after the car had covered 5,000 km, 10,000 km and 15,000 km
respectively. When Himanshu took the car for the first free servicing, he was told that the car was not new and
first service had already been availed on this car. He felt cheated and filled a complaint in the State Commission.
Being not satisfied with the decision of the State Commission, after two months he decided to file and appeal
against it.
Can Himanshu appeal against the decision of the State Commission? Give reason in support of your answer.
OR
Aman, a degree holder in Entrepreneurship came to know about Piplantri Village located in Rajasthan, where in 2006
an initiative was started in which 111 trees are planted every time a girl child is born.
To keep termites away from the trees the villagers have planted 2.5 million Aloe Vera plants around the trees. This
has turned the village into an oasis, as the planting of trees led to higher water levels.
Aman decided to visit the village to start a business unit, for the processing and marketing of Aloe Vera into juices,
gels and other products.
However, on visiting the village Aman found that the villagers were suffering exploitation at the hands of local
merchants who were engaged in unscrupulous, exploitative trade practices like hoarding and black marketing of food
 products and also selling unsafe and adulterated products to the villagers.
After looking at their plight, instead of a business organisation, he decided to set up an organisation for the protection
and promotion of the consumer interest of the villagers.
State the functions that the organisation established by Aman will be performing. (Any six points).
25. Pallavi started a wedding planner company Dreams Unlimited in 2016 and her target was to be amongst the top [4]
10 companies in this field within the next three years. For this she employed people having different skills. She
worked hard and united the efforts of different people to achieve this goal. The requirements of the customers in
this industry changed very fast and the company adapted to keep pace with the changing environment. As
planned, the company achieved its target within three years. All the employees of the organisation were happy
and satisfied and the effect of management was noticeable in the organisation.
The way Pallavi was managing her business highlights some of the features of management. By quoting lines
from the above paragraph, explain any two such features.
OR
Vardan Patel started the business of preparation and supplying sweets through home delivery at a production cum
show-room Express Sweets at Ahmedabad. He made a plan forecasting the sales of different types of sweets in
various localities of Ahmedabad for each month of the year to earn a profit of 20% on Capital employed.
He sets a sales target of ₹20,00,000 in the current year with a 10% increase every year.
He then set the criteria for selecting suppliers from whom he would make purchases of raw material. The planning
paid off and the business was able to achieve its targets.
a. Identify any two types of plans by quoting the lines from the above.
b. Also give the meaning of the types of plans identified in part (a) above.
26. Explain how controlling helps in achieving better coordination and better planning. [4]
OR
Shagun owns an export-oriented unit in Faridabad. She in a typical inspection picks up one or more pieces per
garment item and gets them measured at random, and all its dimensions are recorded in a measurement table. This
table shows each measurement for all sizes and will indicate whether or not particular dimensions are within
tolerance. For example, one such dimension might include "shoulder width from edge to edge" wherein a small
discrepancy of up to 1/8" is allowed. Whereas a deviation up to 1/4" is allowed for "neck width from edge to edge"
measurement. She also asks the worker to put a garment on a model or dummy to check that it fits correctly. Also for
the aspects which are critical to the garment i.e. fasteners like buttons and zippers a fatigue test is carried out by
testing each of them 50 times to ensure that there is no loss of function after use.
In the context of the above case:
a. Identify the technique for measurement of performance being described in the paragraph above quoting lines
from the paragraph.
b. Identify the concepts related to the analysing deviation being used during the inspection by quoting lines from the
paragraph.
27. Explain the following as nature of principles of management: [4]
i. Formed by Practice and Experience
ii. Contingent
iii. Cause and Effect Relationship
28. Define motivation. How does it improve efficiency and facilitate the accomplishment of organisational goals? [4]
29. These days, the development of a country is also judged by its system of transferring finance from the sector [4]
 where it is in surplus to the sector where it is needed most. To give strength to the economy, SEBI is undertaking
measures to develop the capital market. In addition to this there is another market in which unsecured and short-
term debt instruments are actively traded everyday. These markets together help the savers and investors in
directing the available funds into their most productive investment opportunity.
i. Name the function being performed by the market in the above case.
ii. Also, explain briefly three other functions performed by this market.
30. Sumit purchased an ISI marked washing machine of a famous brand 'MG' from TG Electronics Ltd. The [4]
shopkeeper asked him to wait for two days for the installation of the machine. His friend, Vivek, was very fond
of experimenting with new electronic products. He told Sumit that there is no need to wait for the company's
representative to install the machine and that he could do it. So, both of them installed the machine without
following the manufacturer's instructions. Initially, the machine worked effectively and the wash was good. But
after two days, the machine started stopping in between the wash cycle. Sumit and Vivek tried their best to start
the machine but failed in their efforts. Sumit, therefore, approached TG Electronics Ltd., which refused to
provide any service on the plea that the installation of the machine was not done by the company.
a. State the responsibility which Sumit had to fulfill as an aware consumer to get the services of the company.
b. Explain briefly any two rights which Sumit could have exercised had he fulfilled his responsibility identified
in part (a).
31. Explain in brief the various steps involved in the process of staffing. [6]
OR
Explain the steps in the staffing process after Selection.
32. How does the understanding of business environment help the management in the following [6]
i. Identification of threats and early warning signals
ii. Identify threats and early warning signals
iii. Assist in planning and policy formulation
iv. Improving performance
v. Tapping useful resources
OR
State the objectives of demonetisation.
33. What is meant by formal organisation? Explain any three features of formal organisation. [6]
34. Medi Instruments Ltd. is a company dealing in the distribution of medical instruments. The company recently [6]
imported 15000 units of sugar testing machines to test the sugar levels without taking blood samples. For
deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing
heads of different zones. In the meeting, Sanjay, the North Zone Marketing Head, suggested that since the
machines were sophisticated they need to visit hospitals personally to explain its working to the hospital staff
who would be using the machines. He also suggested that additional trained people may be recruited for the
same. Hitesh another Zonal Head, added that since a lot of money had been spent on the import of the machines,
the company was short of funds to pay the additional staff, as suggested by Sanjay. Revansh, a newly appointed
Zonal Head of South Zone, suggested that since the size of the order was not large a detailed study of the factors
determining the choice of channels of distribution was required before making the right choice.
i. Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.
ii. Also, explain briefly the other consideration to be taken care of in each factor identified in part.