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 Series ARSP/12 Set ~ 12
Roll No. Q.P Code 15/12/12
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. Jay is working as a marketing manager in a company. Has been given the task of selling 100000 units of a [1]
product at the cost of ₹100 per unit within 20 days. He is able to sell all the units within the stipulated time but
had to sell last 1000 units at 20% discount in order to complete the target. In such a situation, he will be
considered to be:

a) An effective manager b) Both effective and efficient manager

c) An efficient manager d) efficient but not effective

2. The process of holding securities in electronic form is called dematerialisation. Which of the following statement [1]
does not relate to dematerialisation?

a) Demat securities can be pledged or b) Smooth transfer and settlement of trade

hypothecated to get loans through a single account in shares

c) Existing physical shares cannot be d) No danger of loss, theft or forgery of share

converted into electronic form certificates
3. Which one of the following is a standing plan? [1]

a) Project b) Programme

c) Budget d) Policy
4. Which of the following is NOT a factor affecting capital structure of a company? [1]

a) Interest Coverage Ratio b) Cash Flow Position

c) Growth Opportunities d) Cost of Debt

5. Which among the following is a feature of the standard? [1]

a) Static b) General guidelines

c) Flexible d) Rigid
 6. Identify the principle of management followed in the following pictorial representation. [1]

a) Cooperation, Not individualism b) Remuneration

c) Harmony, not discord d) Discipline

7. Indentify the participant of primary market from the following ________. [1]

a) All of these b) Mutual funds

c) Individuals d) Banks
8. The quality of production is not as per standards. On investigation, it was observed that most of the workers [1]
were not fully aware of the proper operation of the machinery. What could be the way to improve the accuracy?

a) Improvement b) Training

c) Development d) Both training and development

9. Which of the following statements is false regarding financial management? [1]
i. Money required for carrying out business activities is called business finance.
ii. For optimal procurement, different available sources of finance are identified and compared in terms of their
costs and associated risks.
iii. The objective of financial management is to minimise the current price of equity shares.
iv. All of the above.

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

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

10. Assertion (A): Span of Management means for how many years an employee exists in a firm. [1]
Reason (R): Narrow span of management results in a tall structure whereas a wide span of management results
in a flat structure.

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. From 2003, all transactions in securities are to be settled within two days after the trade date. This system is [1]
known as:

a) Rotational settlement system b) Automatic settlement system

c) Mutual settlement system d) Rolling settlement system

12. In the paint industry, various raw materials are mixed in different proportions with petroleum for manufacturing [1]
different kinds of paints. One specific raw material is not readily and regularly available to the paint
manufacturing companies. Pawan Paints Company is also facing this problem and because of this there is a time
lag between placing the order and the actual receipt of the material. But, once it receives the raw materials, it
 takes less time in converting it into finished goods. Identify the factor affecting the working capital requirements
of this industry.

a) All of these b) Availability of raw materials

c) Production Cycle d) Nature of business

13. Statement I: Assert yourself to ensure that you get a fair deal is a consumer right. [1]
Statement II: Right to be heard means a right to file a complaint in case of dissatisfaction with a good or a
service.

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. The government has been doubling down on its efforts to switch to 100% electric vehicles by 2030. Many [1]
companies such as Tata Motors, Kinetic Motors, Maruti Suzuki, and Hyundai Motors are all readying their EV
models for a 2020 launch in order to support the plan.
Identify the type of plan being described in the above lines.

a) Strategy b) Programme

c) Objective d) Method
15. 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

16. Statement I: The focus of the marketing concept is on customer needs and the customer satisfaction becomes [1]
the means to achieving the firms’ objective of maximising profit.
Statement II: The purpose of marketing is to generate customer value at a profit.

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

c) Both the Statements I and II are not correct. d) Statement I is correct and Statement II is not
correct.
17. In one of the steps in the process of planning, the manager is required to make certain assumptions about the [1]
future which are the base material upon which plans are to be drawn. Identify the step:
a. Setting objectives
b. Developing premises
c. Identifying alternative courses of action
d. Selecting an alternative

a) option (d) b) option (b)

c) option (c) d) option (a)

18. Following are the managerial functions against their respective aspects: [1]

Managerial functions Aspects

(a) Planning (i) Deviations

 (b) Staffing (ii) Objectives

(c) Direction (iii) Abilities

(d) Controlling (iv) Leadership

Select the most appropriate combination.

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

c) (a) - (iii), (b) - (i), (c) - (ii), (d) - (iv) d) (a) - (iv), (b) - (i), (c) - (iii), (d) - (ii)
19. Which of the following is not concerned with Long-term Investment decision? [1]

a) Purchase of fixed asset b) Advertisement campaign

c) Launching a new product line d) Day to day working

20. Management by exception differentiates between: [1]

a) standards and outputs b) critical and simple problems

c) input and output d) planned and actual

21. "ls management concerned only with doing the right task, completing activities and achieving goals without [3]
taking into consideration the cost benefit?" Give reason in support of your answer.
22. Mr Fernandes is the owner of Unibie Enterprises, carrying on the business of manufacturing electrical [3]
appliances. There is a lot of discontentment in the organisation and targets are not being met. He asked his son,
Michel, who has recently completed his MBA, to find out the reason.
Michel found that all decision-making of the enterprise were in the hands of his father. Moreover, his father did
not have confidence in the competency of the employees. Thus, the employees were not happy.
i. Identify any two communication barriers because of which 'Unibie Enterprise' was not able to achieve its
target.
ii. State one more barrier each of the types identified in part above.
OR
What is meant by non-financial incentives? List any two non-financial incentives.
23. State how the following factors affect the working capital requirements of a company: [3]
i. Seasonal Factors
ii. Production Cycle
iii. Operating Efficiency
24. Give the meaning of a Consumer as per Consumer Protection Act, 2019. [3]
OR
How are consumer grievances redressed by the three-tier machinery under CPA, 1986? Explain.
25. Give the meaning of ‘policy’ and ‘strategy’ as types of plans. [4]
OR
Explain policy and procedure as types of plan.
26. How does controlling help in achieving objectives and improving employee's morale ? [4]
OR
Textile manufacturer Super textiles reported a 43% fall in its profits in the fourth quarter ended 31 March 2017,
which is beyond the acceptable range 25% decided by the company. This was due to higher fuel cost and lower yield
 on account of demonetization. The company aims to implement cost-saving measures by restructuring contracts and
its business processes to meet its targets in the future.
a. Name the function of management discussed above.
b. Also, identify and explain the steps of the function of management discussed above.
27. Explain how principles of management help the managers: [4]
i. In taking scientific decisions; and
ii. In providing the managers with useful insights into real world situations.
28. The process of stimulating people to action to accomplish desired goals is based on certain assumptions. State [4]
four such assumptions.
29. Differentiate between Primary Market and Secondary Market on the following basis: [4]
a. Company involvement
b. Price determination
c. Location
d. Capital formation
30. Explain any four points of importance of consumer protection from the point of view of the business. [4]
31. Harish, the director of a company, is planning to manufacture stuffed toys for utilizing waste materials from one [6]
of his garment factories. He decided that this manufacturing unit will be set-up in a rural area so that people of
that area will have more job opportunities. For this, he selected Rehman, Anita Banerjee, Harpreet Kaur and
Umesh (a differently-abled but very intelligent and creative person in designing) as the heads of Sales, Accounts,
Purchase and Production Departments respectively.
i. Identify and state the next three steps that Harish has to follow in the staffing process after selecting the
heads of different departments.
ii. Identify any two values that Harish wants to communicate by setting-up this manufacturing unit.
OR
State the merits of internal sources of recruitment.
32. India’s craft heritage is surviving because of its customs and traditions. Craft products made by craftsmen of [6]
Rajasthan, Gujarat, Assam, etc. are not only used in the country but are also exported to USA, Germany, UK,
France and other countries of the world. The volume of exports of these products gives India an advantage in
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. 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.
OR
State the disadvantages or limitations of demonetisation.
33. Differentiate between functional and divisional structure of organising on the basis of the following? [6]
i. Meaning
ii. Formation
iii. Specialisation
iv. Responsibility
v. Managerial development
vi. Cost involved
34. Explain the following sales promotion activities [6]
i. Discount
ii. Product combination
iii. Financing
iv. Lucky draw