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 Series ARSP/04 Set ~ 4
Roll No. Q.P Code 15/4/4
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. Management is an intangible force that cannot be seen but its presence can be felt in the way the organisation [1]
functions. The effect of management is noticeable in an organisation where targets are met according to plans,
employees are happy and satisfied, and there is orderliness instead of chaos.
Identify the characteristic of management highlighted above.

a) Management is a dynamic function b) Management is a group activity

c) Management is multi-dimensional d) Management is an intangible force

2. Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an [1]
example of ________.

a) Privatisation b) Liberalisation

c) Political stability d) Globalisation

3. Which of the following has got the First Mover Advantage? [1]

a) Kansai Paints b) Goodlass Nerolac

c) Asian Paints d) Kan Paints

4. With higher use of debt, the difference between ROI and cost of debt increases the ________. [1]

a) Financial risk b) ROI

c) Capital structure d) EPS

5. Standards are set in: [1]

a) Both qualitative and quantitative terms b) Deviation

c) Qualitative terms d) Quantitative terms

6. Highlight the feature of management depicted by the image given here. [1]
 a) Goal-oriented b) Pervasive

c) Group activity d) Dynamic

7. The term of the Treasury Bill cannot be more than ________ year. [1]

a) Two b) Ten

c) One d) Five
8. A manager, no matter how capable he is, cannot manage to do every task on his own. The volume of work [1]
makes it impractical for him to handle it all by himself. As a consequence, if he desires to meet the
organisational goals, focus on objectives and ensure that all work is accomplished, he must grant authority to
subordinates to operate within prescribed limits. Identify the concept of management highlighted above.

a) Divisional structure b) Delegation

c) Decentralisation d) Functional structure

9. Which of the following statement is true? [1]
a. Competitor’s prices and their anticipated reactions must be considered before fixing the price of a product.
b. Not only the prices but the quality and the features of the competitive products must be examined, before
fixing the price.
c. Packaging serves as a promotional tool.
d. All of these

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

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

10. Assertion (A): Successful organisations do not achieve their goals by chance but by following a deliberate [1]
process called management.
Reason (R): People in organisations are performing diverse tasks but they are all working towards the same
goal. Management aims at guiding their efforts towards achieving a common objective - a goal.

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. If a company deals in metal products and plastic products, what type of organisation will be useful for it? [1]

a) Divisional b) Both Informal and Functional

c) Informal d) Functional
12. Instruments traded in capital market are: [1]

a) Bonds b) Debentures

c) All of these d) Equity Shares and Preference Shares

13. Statement I: While the product costs set the lower limits of the price, the utility provided by the product and the [1]
 intensity of demand of the buyer sets the upper limit of price, which a buyer would be prepared to pay.
Statement II: The price will tend to reach the upper limit in case there is high degree of competition.

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

c) Both the Statements I and II are correct. d) Statement II is correct and Statement I is not
correct.
14. Match the various characteristics of Business environment given in Column I with their respective explanations [1]
in Column II:

Column I Column II

A. Dynamic (i) Environment is a phenomenon that is relatively easier to understand in parts but difficult to
nature grasp in its totality.

B.
(ii) Business environment differs from country to country and even region to region.
Complexity

(iii) Business environment keeps on changing, whether in terms of technological improvement

C. Relativity
or shifts in consumer preferences.

a) A - (ii), B - (iii), C - (i) b) A - (i), B - (ii), C - (iii)

c) A - (iii), B - (i), C - (ii) d) A - (iii), B - (ii), C - (i)

15. Shivam is very particular to get his hair cut from ABC saloon of South Delhi. Which type of service is it? [1]

a) Common Service b) Speciality Service

c) General Service d) All of these

16. Which of the following takes advantage of internal trading? [1]

a) All shareholders b) All Debenture holders

c) All the employees d) People having secret information about the

company
17. The study of environment makes available ________ resources. [1]

a) useful b) inferior

c) costly d) cheap
18. Anurag Singh, a manufacturer, redesigned his existing soup making machine into a small and portable machine. [1]
For selling the machine he entered into an agreement with his uncle who agreed to finance the project with a
50% share in the profits. To launch the machine they decided to start with direct channels of distribution. They
named the venture as Cup-a-Soup. In the first year, their main objective was profit maximization. They
appointed 30 trained salesmen for distribution of the machines across the country. They offered incentives and
awards to salesmen for achieving their sales targets.
Identify the marketing philosophy used by Cup-a-Soup used by it is ________.

a) Marketing concept b) Selling concept

c) Production concept d) Product concept

19. The element of marketing mix by which marketers make use of various tools of communication to encourage [1]
 exchange of goods and services in the market is called:

a) Price b) Promotion

c) Physical Distribution d) Branding

20. This is one of the features of standards. Identify it. [1]

a) Unbending b) Flexible

c) Static d) Rigid
21. White Elpis Ltd. has recently given job to two employees. Ravi and Suraj are two friends who are from the same [3]
college. They both have different work experience as Ravi is a bit older and had worked in an MNC earlier.
However both are paid equally. Every person in their department knows that Ravi is more efficient than Suraj.
Definitely they see a mismatch in the salaries and the efficiencies of the employees in the company. The
marketing department of the same company has this year set a monthly target of 10000 units of sports items to
be sold. In the month of March 6000 items were sold and the deviation was 4000 units. In the month of April
8000 units were sold and the deviation was 2000 units. Despite these deviations no effort is being made to track
the performance of the company to minimize the gaps.
In the above case which two functions of management have been discussed? A very important concept of
management has also been overlooked. Identify it.
22. The following illustration traces the growth pattern of an employee in a well known chain of fast food restaurant [3]
starting with a fresher who joins as a crew member.
Crew - Service Star/Food Star - All-Star - Shift Supervisor - Trainee Manager - Second Assistant Manager -
First Assignment Manager - Restaurant General Manager - Area Manager - Operations Manager - Operations
Director.
Identify the step related to one of the functions of management being described above. Also, describe briefly the
two steps that are carried out before this step.
OR
State any four benefits of using internal sources of recruitment.
23. One of the functions of management completes one cycle of management process and improves planning in the [3]
next cycle in the light of the problems that were identified in the existing plans.
Identify and state the function of management discussed above.
24. Why was the Securities and Exchange Board of India (SEBI), set up? Explain any four regulatory functions of [3]
SEBI.
OR
Give the meaning of Money Market.
25. Explain Placement, Training and Orientation in the process of staffing. [4]
OR
Despite internal sources of recruitment being economical, why do companies not always use this source? Explain any
four reasons.
26. Sadaf is the Chief Executive Officer of a reputed company. She introduced appropriate skill development [4]
programmes and a sound promotion policy for the employees of her company, to motivate and retain the best
talent in the company, she designed the jobs of the managers to include greater variety of work content. Identify
and explain the two incentives introduced by Sadaf to motivate the employees of her company.
OR
 Kumari Ekta Bhandari is working as the Personnel Manager in Jaishri Limited. The speciality of her company is
that the financial position of all its employees is good. The CEO of Kumari Ekta asked her to suggest a Method of
Motivation. He said that the method should be such as should be happily acceptable to all the employees. Ekta spoke
to several employees in this connection. The thoughts of some of the employees gave the feeling that they give more
importance to Individual Autonomy. One group of the company stressed that good performance should be rewarded.
Another group of employees pleaded for recognising the importance of the employees in the company. On the basis
of this investigation Ekta- suggested to the CEO a very good method of Motivation, which made him very happy.
This method was immediately implemented. Consequently, within a few days, the company’s growth rate appeared to
have become fast.
a. Identify the sub-function of management described in the paragraph above.
b. Which Motivation Method, in your view, might have been suggested by the Personnel Manager? Explain this
Motivation Method.
c. Identify the value that has been discussed here.
27. Mohan, a sales manager, achieved his sales targets one month in advance. This achievement was displayed on [4]
the notice board and a certificate for the best performance was awarded to him by CEO of the company.
i. Name the incentive provided to Mohan.
ii. Identify the type of Incentive.
iii. List two other incentives of the type identified in part (ii).
28. Srijan, after completing his bachelor's degree in culinary arts from a reputed institute, took over his family [4]
restaurant specialising in South Indian dishes. This business was promoted by his grandfather many years back
in the form of a company. Now he wants to get the restaurant renovated to open a special section for bakery
products. It is estimated that an investment of ₹ 5 crore will be required to execute this plan. At present the cash
flow position of the company is not strong and fixed operating costs of business are also high.
Keeping in view the above situation, name with two reasons, the source of finance which Srijan should choose
for modernization and expansion of his business. Also explain one more factor, apart from those stated above
which Srijan should keep in mind while taking this decision.
29. Manoj is a renowned businessman involved in export business of leather goods. As a responsible citizen, he [4]
chooses to use jute bags for packaging instead of plastic bags. Moreover, on the advice of his friends, he decides
to use jute for manufacturing aesthetic handicrafts, keeping in view the growing demand for natural goods. In
order to implement his plan, after conducting a feasibility study, he decides to set up a separate manufacturing
unit for producing varied jute products.
In the context of the above case:
a. Identify the type of investment decision taken by Manoj by deciding to set up a separate manufacturing unit
for producing jute products.
b. State any two factors that he is likely to consider while taking this decision.
30. State any five responsibilities of a consumer after purchasing a product. [4]
31. Explain with the help of an example 'differential piece wage system' given by Taylor. [6]
OR
Explain the technique of scientific management, i.e. the extension of principle of division of work and specialisation.
32. 'Apna Ghar/ a company dealing in consumer durables plans to increase the sale of its products by 25% around [6]
Diwali this year. Moreover, in order to cash on the implementation of the seventh pay commission by that time,
which is likely to raise the income of 47 lakh serving employees of the Central government and 52 lakh
 pensioners, the company has created 30 advertisement films which will be aired across 85 national and regional
channels until Diwali.
In the context of the above case:
a. Identify the two different types of plans that 'Apna Ghar' proposes to implement by quoting lines from the
paragraph.
b. Distinguish between the two types of plans as identified in part (a).
OR
Explain the steps in the planning process after identifying alternative courses of action.
33. Aman, Avneesh and Amrish have decided to start a business of manufacturing toys. They identified the [6]
following main activities which they have to perform:
i. Purchase of raw materials
ii. Purchase of machinery
iii. Production of toys
iv. Arrangement of finance
v. Sale of toys
vi. Identifying the areas where they can sell their toys
vii. Selection of employees
In order to facilitate the work, they thought that four managers should be appointed to look after: (a) Production
(b) Finance (c) Marketing (d) Personnel
You are required to:
a. Identify the functions of management involved in the above-mentioned para.
b. Quote the lines from the above para which help you identifying this function.
c. State the steps followed in the process of this function of management.
34. Hayaram is a famous chain selling a large variety of products in the Indian market. Their products include chips, [6]
biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality
products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of
its own retail shops. It also sells its products through various grocery stores so that the products are made
available to customers at the right place, in the right quantity and at the right time, it regularly uses different
communication tools to increase its sales. The above para describes the combination of variables used by
Hayaram to prepare its market offering.
Identify and explain the variables.