KENDRIYA VIDYALAYA SANGATHAN, BHUBANESWAR REGION

PRE BOARD EXAMINATION 2024-25

SUBJECT-BUSINESS STUDIES (054) MAX MARKS: 80

CLASS – XII TIME: 3 HRS
General Instructions:
Read the following instructions very carefully and strictly follow them:
(i) This question paper contains 34 questions. All questions are compulsory.
(ii) Marks are indicated against each question.
(iii) Answers should be brief and to the point.
(iv) Answers to questions carrying 3 marks may be from 50 to 75 words.
(v) Answers to questions carrying 4 marks may be in about 150 words.
(vi) Answers to questions carrying 6 marks may be in about 200 words.
(vii) Attempt all parts of a question together.
Questions no. 1 to 20 are Multiple Choice Questions (MCQs), carrying 1 mark each.

S No Question Marks

1 ------------ refers to doing the task correctly and with minimum cost. 1
(A) Effectiveness (B) Coordination
(C) Process (D) Efficiency

2 Due to the increasing presence of women in the workforce, ‘Muskan Mart' comes out 1
every Friday with big discount offers on daily use items to attract office-going women to
shop on weekends.
Which dimension of the business environment is being highlighted in the above case?
(A) Social environment (B) Legal environment
(C) Political environment (D) Technological environment

3 …………………………………. means number of employees or subordinates can be 1

effectively managed / controlled by a manager.
(A) Span of management (B) Organizational structure
(C) Informal organization (D) Delegation of authority

4 ……….is the step in the controlling process where standards may have to be revised in 1
case the deviation cannot be corrected through managerial action.
(A) Setting Performance Standards.
(B) Measurement of Actual performance.
(C) Comparing Actual Performance with standards and analyzing deviation.
(D) Taking corrective action
5 Which component of the business environment requires that advertisements of baby 1
food must necessarily inform the potential buyers that mother’s milk is the best?
(A) Legal Environment (B) Political Environment
(C) Technological Environment (D) Social Environment

6 ‘Mo bliss’ started using an environment-friendly 'Bilona' method of making ghee, unlike 1
other dairies which were using modern methods involving machines and chemicals. By
doing this, ‘Mo bliss’ is providing employment to hundreds of illiterate people in the rural
areas. Which objective of management is ‘Mo bliss’ trying to achieve:
(A) National objective (B) Personal objective
(C) Social objective (D) Economic objective

7 Identify from the following what is shown in the picture given below? 1

(A) Brand name (B) Brand mark

(C) Trademark (D) Label

8 For holding securities in an electronic form, the investor has to open a demat account 1
with an organization called __________.
(A) Depository (B) Securities and Exchange Board of India
(C) Stock Exchange (D) Mutual Fund

9 Adapting to a change in consumer preference towards online shopping. ‘Fast-Service' 1

started a grocery delivery app. It is a platform that ensures 10- minute deliveries of
groceries. Because of this service, ‘Fast-Service’ earned a huge profit within a year. It
planned to expand its operations and decided to raise funds by directly issuing its
securities to investors.
The market through which ‘Fast-Service' has decided to raise funds for its expansion is :
(A) Money market
(B) Primary market
(C) Secondary market
(D) Both Primary and Secondary markets
10 Statement I: Delegation is the entrustment of responsibility and authority to another, and 1
the creation of accountability for performance.
Statement II: Irrespective of the extent of delegated authority, the manager shall still be
accountable to the same extent as before delegation.
Choose the correct option from the following:
(A) Statement I is true and Statement II is false.
(B) Statement II is true and Statement I is false.
(C) Both the Statements are true.
(D) Both the Statements are false.

11 Most of the organizations these days have adapted themselves to changing 1

environment. To reach and engage with the target customers, they started to have a
strong presence on social media like Facebook, Instagram, etc.
From the following, identify the feature of management being highlighted:
(A) Management is a group activity.
(B) Management is a continuous process.
(C) Management is multidimensional.
(D) Management is a dynamic function.

12 Match the Marketing Management philosophies given in Column I with their main focus 1
given in Column II:

Column I Column II
1. Production concept i) Customers’ needs
2. Product concept ii) Quality, performance and features
3. Marketing concept of product.
4. Societal Marketing concept iii) Customers’ needs and societal
well-being.
iv) Quantity of product

Choose the correct option from the following:

(A) 1-(i), 2-(ii), 3-(iii), 4-(iv)
(B) 1-(ii), 2-(iii), 3-(i), 4-(iv)
(C)1-(iv), 2-(ii), 3-(i), 4-(iii)
(D) 1-(ii), 2-(iv), 3-(i), 4-(iii)

13 Two big banner movies were scheduled to be released on the same date. On the last 1
 movement release of one of the movies had to be postponed due to opposition from a
group of people due to some unethical content being shown in the movie. The other
movie released on time and made huge profit as there was no competition and the
movie which was postponed suffered loss.
Which features of the business environment are highlighted here?
(A) Uncertainty (B) Relativity
(C) Dynamic (D) Interrelated

14 ‘Star biscuits’ launched its new range of oat cookies in three varieties. They decided to 1
distribute free samples of their biscuits in schools as a part of their promotional
campaign.
Identify the tool of promotion used by 'Star Biscuits':
(A) Advertising (B) Personal Selling
(C)Sales Promotion (D) Public Relations

15 Uma was working as a ‘Production Manager' at ‘Mega Papers Ltd’. The company had 1
launched new eco- friendly paper straws in the market. She was given a target of
producing 5,000 straws a day, by the General Manager. In spite of making the
employees work overtime, Uma could not meet the target.
On investigation, it was found that the employees had not received the right training to
manufacture these eco- friendly paper straws. So the employees were sent for special
training.
The function of management which helped Uma in identifying that he could not meet the
target is:
(A) Planning (B) Organising
(C) Directing (D) Controlling

16 Choose the incorrect statement about 'Money market': 1

(A) The main instruments traded in this market are Treasury bills, Trade bills,
Commercial paper and Certificates of deposit.
(B) In this market, transactions entail huge sums of money as the instruments are quite
expensive.
(C) Participation in this market is by and large undertaken by institutional participants
such as the Reserve Bank of India, banks, financial institutions and finance companies.
(D) It deals in medium- and long-term securities.

17 __________as an element of marketing mix includes the activities which provide 1

 information about the product to the target customers.
(A) Promotion (B) Place (C) Product (D) Price

18 During the Covid-19 pandemic, the Tourism industry faced many challenges. The 1
slowdown led to huge decrease in demand. From April 2022, the effect of Covid started
reducing. The economy started picking up and a boom was noticed in the Tourism
industry. As a result, a larger amount of working capital was required with increased
Demand.
The factor affecting the working capital requirement discussed above is:
(A) Seasonal factor (B) Production cycle (C) Operating efficiency (D) Business cycle

19 Read the following statements: 1

Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): Availability of leasing facilities may reduce the funds required to be
invested in fixed assets thereby reducing the fixed capital requirements.
Reason (R): When an asset is taken on lease, the firm pays lease rentals to use it and
avoids to invest huge sums required to purchase it.

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A).
(C) Assertion (A) is true but Reason (R) is false.
(D) Assertion (A) is false but Reason (R) is true.

20 Coordination is considered to be the essence of management because ______. 1

(A) It is a common thread that runs through all the activities within the organisation.
(B) It is implicit and inherent in all functions of the organisation.
(C) It is a force that binds all the functions of management.
(D) All of the above.

21 Explain the following: 3

(a) Vestibule training (b) Apprenticeship training
(Or)
Distinguish between training and development.

22 Explain any three relationships between Planning and Controlling. 3

 (Or)
Explain 'Critical point control' and 'Management by exception' as discussed in the
controlling process.

23 Rashmi is working in a private sector bank. One of her key functions relates to the 3
formulation of the overall organizational goals and strategies of the bank. Identify the
level of management at which she is working? State any three other functions that she
has to perform at this level.

24 Mr. Vikas Mehra was the Chairman of IBM Bank. The bank was earning good profits. 3
Shareholders were happy as the bank was paying regular dividends. The market price
of their shares was also steadily rising. The bank was about to announce the taking over
of ‘UK Bank’. Mr. Vikas Mehra knew that the share price of IBM Bank would rise on this
announcement. Being a part of the bank, he was not allowed to buy shares of the bank.
He called one of his rich friends Mukand and asked him to invest Rs. 4 crores in the
shares of his bank promising him the capital gains.
As expected, after the announcement, the share prices went up by 50% and the market
price of Mukand’s shares was now Rs. 6 crores. Mukand earned a profit of Rs. 2 crores.
He gave Rs. 1 crore to Vikas Mehra and kept Rs. 1 crore with him. On regular
inspection and by conducting enquiries of the brokers involved, the Securities and
Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a
heavy penalty on Vikas Mehra.
a) Which type of unfair trade practices done by Mr.Vikas
b) Quoting lines from the above paragraph identify and state any two functions
performed by the SEBI in the above case.
(Or)
Explain any three functions of stock exchange.

25 ‘Zeto Ltd.’ offers its employees shares at a price which is less than the market price. 4
(a) Identify the incentive offered by the company and state the type of incentive
discussed above.
(b) State two other incentives of the type of incentive identified in (a) above.

26 Abhilasha is a student of class XIl of a well-known school. She has a preconceived 4

notion that her teacher always finds fault in her work. One day while checking the
project work of class XII, her teacher wanted to appreciate Abhilasha for her hard work
and good performance, but before she could complete her sentence, Abhilasha left the
 room without listening to her teacher.
(a) Identify the ‘barrier to communication' and also the type of barrier to which it is
related.
(b) Explain two other communication barriers of the identified in (a) above.

27 Arun is a successful businessman in the paper industry. During his recent visit to his 4
friend’s place in Mysore, he was fascinated by the exclusive variety of incense sticks
available there. His friend tells him that Mysore region in known as a pioneer in the
activity of Agarbati manufacturing because it has a natural reserve of forest products
especially Sandalwood to provide for the base material used in production. Moreover,
the suppliers of other types of raw material needed for production follow a liberal credit
policy and the time required to manufacture incense sticks is relatively less. Considering
the various factors, Arun decides to venture into this line of business by setting up a
manufacturing unit in Mysore.
In context of the above case:
1. Identify the decision made by Arun in above case:
2. Identify the three factors mentioned in the paragraph which are likely to affect the
working capital requirements of his business.
(Or)
Tata International Ltd. earned a net profit of Rs. 50 crores. Ankit the finance manager of
Tata International Ltd. wants to decide how to appropriate these profits. Identify the
decision that Ankit will have to take and also discuss any three factors which help him in
taking this decision.

28 Bhuvan inherited a very large area of agricultural land in Haryana after the death of his 4
grandfather. He plans to sell this piece of land and use the money to set up a small
scale paper factory to manufacture all kinds of stationary items from recycled paper.
Being an amateur in business, he decides to consult his friend Subhash who works in a
financial consultancy firm. Subhash helps him to prepare a blue print of his future
business operations on the basis of sales forecast in next five years. Based on these
estimates, he helps Bhuvan to assess the fixed and working capital requirements of
business.
In context of the above case:
1. Identify the type of financial service that Subhash has offered to Bhuvan.
2. Briefly state any four points highlighting the importance of the type of financial
service identified in part (a)
29 Reena purchased one litre of pure desi ghee from a shopkeeper. After using it, she had 4
doubts that it was adulterated. She sent it for a laboratory test which confirmed that the
ghee was adulterated.
a) State any four reliefs available to Reena if she complaints and the consumer court is
satisfied about the genuineness of the complaint.
b) State any two responsibilities of Reena
(Or)
Explain any four rights of consumer.

30 Identify and give the meaning of the concepts highlighted in the following statements : 4
(a) The process of finding possible candidates for a job.
(b) An assessment of the number and types of human resources necessary for the
performance of various jobs.
(c) Introducing the selected employees to other employees and familiarising them with
the rules and policies of the organization.
(d) It ensures that the organization gets the best employees amongst the employees
available.

31 Explain the following techniques of Scientific Management: 6

(i) Time study
(ii) Method study
(iii) Differential piece wage system
(Or)
Explain the following principles of Scientific Management:
(i) Science, Not Rule of Thumb
(ii) Harmony, Not Discord
(iii) Development of Each and Every Person to His or Her Greatest Efficiency and
Prosperity

32 Priya started her own art channel on ‘YouTube Mo Art’. As her subscribers increased, 6
she was not in a position to manage everything on her own. She hired Kishan and Riya
to help her with filming, editing, lighting and content research. She granted authority to
them to operate within prescribed limits. She was thus able to use her time on high
priority activities like developing new ways of art and content development etc. As a
result, Kishan and Riya were given opportunities to develop and exercise initiative. Priya
was now able to focus on objectives and meet the target of achieving a subscriber base
 of one million in six months.
(a) Identify and explain the concept of management used by Priya to focus on objectives
of her business and meet her targets.
(b) Explain four points of importance of the concept identified in (a) above.

33 Anusuya care Enterprise is a manufacturer of Hygiene products. It decided to increase 6

profits by at least 20% in the next quarter. It has many options:
1. To increase the working hours of labour with additional payment.
2. To employ worker from the local community.
3. To sell its products outside the schools and colleges.
It opted the (ii) and (iii) options to achieve the target.
1. Identify the function of management described in the above para.
2.Explain the steps of the process involved in the function of management
Identified in (a) quoting the lines from the above para.
(Or)
Suhasini, a home science graduate from a reputed college, has recently done a cookery
course. She wished to start her own venture with a goal to provide 'health food' at
reasonable prices. She discussed her idea with her teacher (mentor) who encouraged
her. After analyzing various options for starting her business venture, they shortlisted
the option to sell ready-made and 'ready to make' vegetable shakes and sattu milk
shakes. Then, they weighed the pros and cons of both the shortlisted options.
a. Name the function of management is discussed above and give any one of its
characteristics.
b. Also briefly discuss any three limitations of the functionality discussed in the case.

34 ‘BB Ltd.' is engaged in the manufacturing of Vehicles. The company surveyed the 6
market and found that customers need a car which runs on eco-friendly fuel instead of
petrol or diesel. Keeping the needs of customers as well as social, ethical and
ecological aspects of marketing in mind, the company launched a new model of car that
runs on bio-diesel. The launch event was covered by the top news channels and
newspapers. This was done to disseminate information about the car and build goodwill
of the business. ‘BB Ltd.' understands that it imperative to manage public opinion and
company's relations with the public on a regular basis.
(a) Identify and explain the marketing philosophy involved in the above case.
(b) Identify and explain the communication tool that was used by the company.
(c) Explain any two other promotional tools that can be used by ‘BB Ltd' to achieve its
objectives