NAVODAYA VIDYALAYA SAMITI-PUNE

CLASS:XII PREBOARD-II MM – 80
SUBJECT: BUSINESS STUDIES (054) TIME: 3 HOURS

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. Kishan was a founder of a leading chain of Automobiles shops dealing in high end cars. He 1
believed in retaining all decisions making authority with him. He wanted tight control over
the entire business. Getting over-burdened with work he decided to focus only on crucial
decisions. He asked the vice president of his company to help him with routine matters. This
case study reflects a shift from one concept of organization to another which is
a. Delegation to decentralization
b. Centralization to decentralization
c. Decentralization to delegation
d. Centralization to delegation
2. Which of the following is the feature of policies ? 1
a. Written
b. Simple and clear
c. Policies are not objectives
d. All of the above

3. Assertion (A): Delegation is a pre-requisite to the efficient functioning of an organization. 1

Reasoning (R): It enable manager to use is time on high priority activities.
Choose the correct option:
a. Both (A) and (R) are incorrect.
b. (A) is correct ,but (R) incorrect.
c. Both (A) and (R) are correct and (R) is correct explanation of (A).
d. Both (A) and (R) are correct and (R) is not correct explanation of (A).
4. A leading pizza chain recently introduced Momo-pizza , a combination of pan pizza with 1
momos are the second most loved street-food of the India after Golgappas. They wanted to
be the first company to take advantage of this opportunity rather than losing to custmers.
The point of importance of understanding of business environment discussed above is:
a. Tapping useful resources
b. Identifying opportunities and getting the first move advantage
c. Improvement in performance
d. Coping with rapid changes.

5. KTX Group is rolling out an initiative to help create wealth for its employees 1
through the implementation of Employee stock option.Through motivation and
leadership the management will help individuals to develop team spirit,
cooperation and commitment to the success of the group. The following
importance of management is highlighted is..
a. Management helps in achieving personal goals.
b. Management creates a dynamic organization
c. Management increases efficiency
d. Management helps in the development of society.

6. Which of the following does not characterize the business environment ? 1

a. Uncertainity
b. Complexity
c. Reletavity
d. employees

7. Airlines will be able to offer the benefit of lower pricing to customers on sectors/routes 1
due to the decision of the civil aviation ministry to remove price caps from August 31,
2022. This can help an airline to do better performance if they take early decisions
regarding future courses of action after understanding and doing analysis. Which
importance of business environment and its understanding by managers is not highlighted
above:

a. It helps in improving performance

b. It helps in assisting in planning and policy formulation
c. It helps in tapping useful resources
d. It enables a firm to identify opportunities and get first mover advantage.
8. Alo a mobility platform is in the process of laying off 400-500 employees in a move aimed 1
at driving cost efficiency. Which objective of management will the firm not be able to
achieve by carrying out this process.
a) Efficiency
b) Social
c) Profit
d) Survival
9. Radha started a home cooked food delivery Dabba service. Her mother, who is a great 1
cook, decided to help her. They relied on friends and family for orders and then on word of
mouth. As a step in the process of ensuring that activities are performed as per her plan of
supplying healthy, good quality, reasonable food and earning profit, she decided to keep
both qualitative and quantitative benchmarks towards which she would strive to work. A
function of management is being discussed above. An important characteristic of this
function of management is :
a. It is the first function of management
b. It is the Last function of management
c. It is both forward looking and backward looking.
d. It is required only in business organizations.
10. A sanitizer company decided to become a market leader. For this purpose manager follows 1
an activity with certain logical steps. The step suggested by him is to increase profit by at
least 30% in the next quarter. What will be the last step of the activity being followed by the
manager.
a. Identifying the alternative course of action
b. Follow up action
c. Setting objectives
d. Evaluating alternative courses of action
11. Ensuring that the subordinate performs tasks on behalf of the manager thereby reducing his 1
workload and providing him with more time to concentrate on important matters.
a. Decentralization
b. Delegation of authority
c. Authority
d. accountability

12. 1
Statement-I Transportation helps in creating time utility and warehousing helps in creating
place utility

Statement-II The process of classification of products into different groups on the basis of
their important characteristics is known as standardization.

Choose the correct option from the options given below:

a. Statement I is true and II is false

b. Statement II is true and I is false
c. Both the statements are true
d. Both the statements are false

13. Match the Column - I Column-II

Column-I Column-II
1. Controlling insider trading a. Regulatory function
2. Measures to develop capital b. Stock exchange
market. c. Protective function of SEBI
 3. Collective investment and mutual d. Development function of SEBI
funds
4. Providing a platform for buying
and selling of existing securities.
a. 1-a , 2-b , 3-c , 4-d
b. 1-d , 2-a , 3-b , 4-c
c. 1-c , 2-d , 3-a , 4-b
d. 1-b , 2-c , 3-cd, 4-a

14. Which of the following is not the participant in the money market ? 1
a. RBI
b. SEBI
c. Mutual funds
d. NBFCs

15. The process of classification of products into different groups on the basis of their 1
characteristics relates to
a. Grading
b. Standardization
c. Product designing
d. Marketing planning

16. Which of the following statements is incorrect? 1

a. Providing liquidity to securities is one of the functions of stock exchange
b. Process of holding shares in electronic form is known as Dematerialization
c. Securities Exchange Board of India performs the regulatory function of controlling
insider trading and imposing penalties for such practices.
d. Capital market consists of Commercial banks, Development banks and stock
exchanges

17. 1
One of the following is considered to be an extension of the marketing concept, which
apart from customer satisfaction pays attention to ethical and ecological aspects of
marketing. Identify the concept.

a. Selling concept

b. Product concept

c. Production concept

d. Societal Marketing concept

18. 1
While the product costs set the lower limits of the price for a product, the upper limit of
price which a buyer would be prepared to pay is decided by:

a. Utility and demand of the product

b. The marketing manager of the firm
c. The Government
d. The competitors of the firm

19. Choose the correct option 1

Statement-I: Advertisement is an impersonal from of communication
Statement-II: advertisement lacks direct feed back.
a. Statement-I is correct and statement-II is wrong.
b. Statement-II is correct and statement-I is wrong.
c. Both the statement are correct.
d. Both the statement are incorrect.

20. Arrange the steps involved in trading procedure at the stock exchange in correct sequence 1
:

i) Settlement of order ii) Opening of Demat Account iii) Placing of order iv) Execution
of order

a) (ii) ; (iv);( iii);(i) b) (ii) ;(i) ;(iii);(ii)

c) (iii);(ii);( ii);(i) d) (ii);(iii);(iv);(i)
21. Godrej company is making plans for the future growth. Planning is deciding in advance 3
what to do and how to do. It is one of the basic function. It involves setting objctives and
developing appropriate courses of action to achieve these objectives. Its importance has
link with some important values. What are those ones ?

22. Personal management include manpower planning and man power planning involves all the 3
functions of staffing. Elaborate.

23. 3
Explain “Critical point control” with respect to Analyzing deviations, a step in the process of
controlling. Give a suitable example.

OR

Explain “Management by exception” with respect to Analyzing deviations, a step in the

process of controlling. Give a suitable example.
24.
State any three objectives of the Securities Exchange Board of India. 3

Or

State any three functions performed by the stock exchange. 3

25. External sources of recruitment brings in, a fresh new talent in organization. Explain its 4
importance.

OR

Enumerate any four benefits of the process by which the aptitudes, skills and abilities of
employees to perform specific jobs are increased

26. 4
With good leader organization can tackle the challenges very well, keeping view, explain the
meaning and types of leadership.

OR

State any four barriers to communication which are related to authority relationships, rules
and regulations of the company.

Mr. Mahindra is working as the human resource consultant in a firm manufacturing 4

cosmetic. Which is facing a problem of high employee turnover. The CEO of the company
27 has invited suggestion from her for retaining the talented employees and reducing the
employee turnover. Mr. Mahindra recommends that the good emplloyees be reward in a
way that it creates a feeling of ownership among the employees and at the same time
make them contribute towards the growth of the organization.
Identify the incentive and explain its type.
Explain any four factors affecting the dividend decision.
28. 4

29. Meo Ltd wants to raise some money for investment purpose. The relevant details are :
Total funds to be raised : Rs.40,00,000
Rate of interest:10%
Rate of tax: 30%
EBIT: Rs. 600,000 4
Face value of equity shares : Rs. 10 per share
The three different conditions are taken for EPS:
1. Equity capital : Rs.40,00,000
Debt: nil
2. Equity capital : Rs, 24,00,000
Debt : 16,00,000
3. Equity capital : Rs.16,00,000
 Debt : Rs. 24,00,000
Calculate EPS for each case show where shareholder gets maximum return.
30. Ganesh purchased a packet potato ships of renowned brand for his daughter from a shop 4
in the nearby market. After consuming the potato ships his daughter fell sick. He filed a
case with the District forum against the renowned brand. He lost the case because of a
mistake that he could not provide proof of purchase. What should be kept in mind by a
consumer while purchasing, using and consuming goods and services apart from avoiding
the mistake committed by Ganesh, in order to enable him/her to achieve the objective of
consumer protection? Enumerate any four responsibilities.

31. 6
Briefly eExplain any three of the following techniques of Scientific Management as given by
FF.W Taylor

Method study
b. Functional foremanship
c. Standardization
d. Differential piece wage system

OR

Briefly explain any three of the following principles of management given by Henry
Fayol:

a. Unity of command
b. Equity
c. Remuneration
d. Initiative
32. 6
‘The pros and cons of each alternative need to be weighed.’ Name and briefly explain the
logical steps in the process of planning which are followed by a manager before performing
the step highlighted in the above statement.

OR

Briefly explain the next three steps in the process of planning which the manager will have
to have to follow after using conjecture about what might happen in the future.

33 It helps in effective management, employee development, motivation, growth and co- 6

ordination.
From the above identify and briefly explain the benefits of the concept discussed above.
34. 6
Choco Ltd. offers a wide variety of chocolate products. It has an action program of not
selling its products by their generic name but under different names like Choco-silk bar,
Choco-Munchy and Choco-crunchy etc. for different customer segments. All these names
have great popularity and acceptability in the markets.

As the company policy the products were offered at reasonable and affordable prices for
targeting a mass customer base.

During the festive season the company launched a massive promotional campaign to
increase its revenue and achieve its communication objectives. The company introduced
free gifts for the customers.

Their on-ground sales team delivers the product not only to the departmental stores but
also to small shops, so that all segments of customers can easily get the products. They also
provide information and support services to customers to ensure repeat sales.

From the viewpoint of the management function, briefly explain any four activities of
marketing which the firm will be involved in, apart from the above-mentioned ones it's
already performing.