KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION

SAMPLE PAPER SET-6

CLASS – XII SUBJECT: BUISNESS STUDIES

TIME: 3 HOURS MM:80

General instructions:
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answer 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.

Q.No. Questions Marks

1. ________ is the market for short-term funds meant for use for a period of up to 1 1
year.
(a) Capital market (b) Money market
(c) Financial markets (d) None of these.
2. Which of the following is not a characteristic of a good brand name? 1
(a) Distinctive b) In local language
(c) Short and simple (d) Sufficiently versatile.

3. ___________ is known as as the Father of General Management. 1

(a) Henry Fayol (b) F. W. Taylor
(c)Max Weber (d) Abraham Maslow

4. Amazon and Flipkart sell goods through: 1

(a) Direct channel of distribution.
(b) One level channel of distribution.
(c) Two level channel of distribution.
(d) Three level channel of distribution
5. Which marketing management philosophy had a main focus on costumers’ 1
needs and well-being of the society?
(a) Production concept
(b) Sales concept
(c) Marketing concept
(d) Societal Marketing concept.

6. Which of the following statement is incorrect? 1

(a) Marketing and selling are two different terms. 1/8
(b) Marketing is a social process.
(c) A consumer purchases a product only if it is perceived to give greater benefit or
value for money
 (d) Marketing activities start with the development of a product.

7. Human Resource Department of any organisation has to ensure the adequate number 1
of employees available throughout the organisation. At which level a human
resource manager works?
a) Top-level management
b) Middle-level management
c) All of these
d) Operational management
8. Which principle of management suggests that employees should be treated with 1
justice and kindness.
9. Match the following and select the appropriate option. 1
(i) Setting objectives (a) Assumption about future
(ii) Developing Premises (b) Monitoring the plans
(iii) Evaluating alternatives (c) Increase in sales by 20%
(iv) Follow-up action (d) Weigh the pros and cors
i. (i) - (c), (ii) - (a), (iii) - (d), (iv) - (b)
ii. (i) - (c), (ii) - (a), (iii) - (b), (iv) - (d)
iii. (i) - (d), (ii) - (b), (iii) - (a), (iv) - (c)
iv. (i) - (d), (ii) - (c), (iii) - (a), (iv) - (b)

10. Mr. Raghav, Finance manager of Manav InfraTech Pvt. Ltd., prepared a detailed 1
plan of financial needs of the firm in coming six months and the sources from where
funds will be acquired to meet out these needs as company is planning to open a new
branch in other states of India. Identify the financial concept discussed here:
a) Working capital
b) Business cycle
c) Financial planning
d) Capital structure

11. Mr. X purchased a car for Rs. 15 lakhs but he is not satisfied with the quality and 1
performance of the car. The company of the car did not provide any remedy to him.
Under which authority of Consumer Protection Act, 2019 can he file an appeal?
a) National Commission
b) None of these
c) District Commission
d) State Commission
12. Which of the following is not a feature of controlling? 1
a) The nature and extent of control doesn't remain same at all levels of

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 management.
b) Controlling is a continuous process.
c) The nature and extent of control remains same at all levels of
management.
d) Controlling is pervasive
13. The National Stock Exchange of India was recognized as stock exchange in the year: 1
a) 1992
b) 1993
c) 1995
d) 1994
14. The forces relating to scientific improvements and innovations which provide new 1
ways, methods and techniques of producing goods and services and operating a
business is:

(a) Social environment b) Technological environment

(c) Internal environment d) Micro environment
15. Principle of ________ requires good superiors at all levels, clear and fair agreements 1
and judicious application of penalties.
a) Discipline
b) Direction
c) Unity of Command
d) Order
16. A manager applies the existing theoretical knowledge in his own unique manner. 1
This reflects that management is
(a) Universally applicable (b) A Science
C)An Art (d) Pervasive

17. The work performed by Top Level Management is ________. 1

a) Easy
b) Oversee the efforts of workforce
c) Complex and Stressful
d) Concerned with control of operative employees
18. Security Agents Ltd. provides security services. They gave an advertisement in 1
newspaper for hiring males for the post of Security Guard who are reliable and keep
client information confidential. 75 candidates approached them and Security Agents
Ltd. finalized 10 candidates to be selected after conducting required test and
interview. Out of the following, identify the next step to be followed by Security
Agents Ltd.
a) Reference and background check
b) Job offer
c) Selection decision

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 d) Medical examination
19. Which amount of the following statements is true? 1
i. Higher competition requires larger stocks to meet urgent orders
from customers which results into requirement of more working
capital.
ii. The companies having growth prospects require lesser amount
of working capital.
iii. If the rate of inflation is high, an organisation is required
to invest less in working capital.
iv. All of the above
a) Option (iv)
b) Option (i)
c) Option (iii)
d) Option (ii)
20. In order to make the Annual Day of the school a successful event, the Headmistress 1
of the school segregated all the activities into task groups each one dealing with a
specific area. For instance, decorations, refreshments, backstage support, etc. Each
group was put under the charge of one teacher. Identify the function of management
performed by the Headmistress by dividing the activities and assigning the duties?
a) Planning
b) Directing
c) Staffing
d) Organising
21. Ramesh is working under the guidance of Harish, a carpenter, for the last three years 3
to learn the different skills of this job. Name and explain the method of training
Ramesh is undergoing Apprenticeship programmes.

22. Sunidhi has started a designer studio in the basement of her residence after 3
completing her masters in fashion designing. She has appointed ten employees to
take care of the various aspects of the work. She interacts regularly with each
employee to tell exactly what is expected of him/her and what he/she needs to do to
be regarded as a good performer. At the same time she allows a free work
environment wherein the employees openly chit chat with each other in order to
fulfil their social and emotional needs. Sometimes, these interactions also lead to
spreading rumours which are not authentic.
In context of the above case:
a. Name and explain the two types of communication being referred to in the above
paragraph.
b. How does effective communication increases managerial efficiency?
The two types of communication being referred to in the above paragraph are formal
communication and informal communication.

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 OR
Aarav was working as a supervisor with ‘Neer Purifier Ltd.’ which was producing
water purifiers. The target of the company was to produce 200 water purifiers every
day. His job was to make sure that work goes on smoothly and there was no
interruption in production. To achieve this, he always gives orders and insists that
they are obeyed. He believes that reward or punishment both can be given depending
upon the performance. Identify and describe the leadership style being adopted by
Aarav.
23. Three groups of employees of ‘Gama Limited' are working at different posts. The 3
first group of employees is responsible for the welfare and survival of the
organisation. In order to discharge its responsibility properly, this group
continuously keeps a watch over the Business Environment. With a view to coping
with the changes going on in the Business Environment, this group immediately
discusses the change to be brought about in the company's plans. The second group
of employees is responsible for maintaining quality and safety standards, and
minimising wastages. The responsibility of the third group of employees is to
explain the policies decided by the top management and developing the feeling of
cooperation among all the departments of the company.
a. Identify the concept of management described in the paragraphs given
above.
b. Identify the three types of concept identified in 6a’ by quoting the
relevant lines.
24. Star Ltd. is in need of finance to expand the business. The finance manager, Sumit, is 3
looking into different sources of funds available. After doing the cost and risk
analysis, he found debt as the best option but as the company has to pay huge
insurance premium for the plant and machinery and lease for the building, the
decision was taken to raise funds through equity. Identify and explain the factor
which affected this decision.
OR
Differentiate between money market and capital market.
25. Few years ago, there were many malpractices and unfair trading practices like price 4
rigging, unofficial premium on new shares etc. Al these had eroded investors'
confidence and multiplied their grievances. To overcome these, Government of India
decided to set up a separate regulatory body for this purpose.
(a) Name the separate body set up by the Government of India.
(b) List its three regulatory functions.
26. "If you try to control everything, you may end up in controlling nothing". Comment. 4
OR
How does control simplify the task of a supervisor?
27. Himesh is working as a supervisor in a company. Due to his hard work, he is 4

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 promoted to the post of Production Manager. Now the post of supervisor is vacant
and no one can be transferred or promoted to this post. Name the source of
recruitment the company will use to fill up this post. State any three advantages of
using this source of recruitment.
OR
Distinguish between external and internal sources of recruitment

28. Which process prepares a blue print of an organizations future preparations relating 4
to finance? Give any three reasons why this process is needed?

29. Neha was a regional sales manager in ‘Good Look Garments Ltd. ‘for ten years. On 4
the retirement of the marketing manager, Neha applied for the same post as she was
extremely ambitious and had dedicated all her energies to obtain the post of a
marketing manager. However, the top management of the company decided to fill
this post by selecting a better person from outside the company. Because of this
Neha was heart-broken and her performance declined. When the new marketing
manager joined, one of her major problems was how to motivate and inspire Neha to
her former level of performance.
Suggest any three non-financial incentives that the new marketing manager
may use to motivate Neha.
30. State any four reliefs available to a consumer under the provision of CPA, 1986. 4

31. Ferro Ltd., manufactures scooters, is facing a lot of problem of declining market 6
share due to increased competition from the new and existing players in the market.
Its competitors are introducing low priced model for price sensitive customers and
scooters with added features and technological advancements for quality conscious?
(a) Which type of plan should be formulated by Ferro Ltd.? What can be the
derivative plans?
(b)What can be the limitations of this plan?
(c) How can these limitations be removed?
OR
Amit Sports Ltd. was in the business of manufacturing treadmills and had a
monopoly in the market. The business was doing very well and the company was
consistently able to meet its objective of 20% increase in sales year after year
Encouraged by the good track record, Mr. Akhil, the Managing Director of the
company, kept an ambitious target of 30%o increase in sales for the next year. The
same year, two competitors entered the market and the company could not achieve
its targets. Identify and explain any three limitations of one of the functions of
management because of which the company was not able to meet its targets.
32. Voltage fluctuations have been common and quite high in India. They harm our 6
electrical appliances like televisions, refrigerators, and air conditioners, often
leaving them in a permanently damaged condition. N-Guard Company decided to
manufacture stabilizers for North India where the voltage fluctuation ranges from
220 V to 230 V.

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 Once the demand for North India was taken care of, they decided to launch
stabilizers of varying voltages from 90 V 260 V for meeting the requirements
of voltage fluctuations in other regions of India also. Three engineers were
appointed for the South, West and East regions of India, as the voltage was
different in all the three regions. Though all the engineers were appointed to
manufacture stabilizers, the product differed from region to region.
a. Identify the organizational structure of the N-Guard Company.
b. State any two advantages and two limitations of the structure
identified in the above para.
33. Subramanium & Co., an Aggarbatti manufacturing company in Bengaluru, have two 6
offices in the city within 10 km area. It manufactures Aggarbatties under the brand
name ‘Aeroplane’. It is famous for its sandal and rose flavoured Aggarbatties.
Mahesh and Rahul are accountants in each of the office having same qualification
and work on the same post and perform same nature of work. In spite of that,
Mahesh is getting salary of Rs. 20,000 and Rahul is getting Rs. 16,000 per month.
There is no logic behind this difference in salary.
Management is also frustrated when they see that staff relating to production
department is wasting its time in gossiping with sales department and members of
sales team sitting in finance department. People and materials are not in suitable
places.
(a) Mention the Fayol’s principles of management violated in the given company.
Also give one advantage of principles identified in above (a)
(b) Explain the principle of Espirit De Corps.
OR
Briefly explain any three of the following principles of management given by Henry
Fayol:
(i) Unity of command
(ii) Order
(iii) Equity
(vi) Subordination of individual interest to general interest.
34. Advertisement is an important business activity. On the one hand, it makes available 6
to the people information regarding different new and old products and on the other,
it is also a source of living for many persons. Impressed by these traits of
advertisement Tanu, Manu and Sanchit, three students of Class-XII made up their
mind to go ahead with project work on an advertisement. All the three conversed
with the people about advertisement. Each one of them, on the basis of his survey,
concluded as under:
i. Tanu opined that advertisement costs get transferred to
consumers in the form of high prices.
ii. Manu was of the opinion that advertisement showed reality in
a twisted form. iii. Sanchit maintained that advertisement was
turning people from reality to artificiality.

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a. What do the above remarks about advertisement hint at? Clarify it.
b. Identify two values that advertisement presents to society.

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