SAMPLE QUESTION PAPER - 3

BUSINESS STUDIES (054)

CLASS XII (2024-25)

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. Digital Pvt. Ltd. is a mobile manufacturing company. The manager of the company [1]
observed that the market is dynamic and a lot of changes were taking place in the
mobile market and hence, the risk of the product becoming obsolete is high. The
designs of the phones are governed by requirements and preferences of the customers.
He started incorporating new and advanced features taking clue from the consumers
and with the help of his workers.
Identify the characteristic of management highlighted in this case.

a) Management is a dynamic b) Management is multi-

function dimensional

c) Management is a goal-oriented d) Management is a group activity

process

2. What is meant by Demat Account? [1]

a) Demand Depository Account b) Depository Participant Account

c) Dematerialisation of of d) Development Market Account

Securities
3. Name the type of plan which defines the formal parameters within which the managers [1]
may function.

a) Strategies b) Rules

c) Policies d) Procedures

4. ________ aims at reducing the cost of funds procured, keeping the risk under control [1]
and achieving effective deployment of such funds.

a) Trading on Equity b) Capital Structure

c) Financial planning d) Financial management

5. ________ is the step in the controlling process where standards may have to be [1]
revised in case the deviation can not be corrected through managerial action.

a) Taking corrective action b) Measurement of Actual

performance

c) Comparing Actual Performance d) Setting Performance Standards

with standards and analysing
deviations

6. The following pictorial presentation highlights violation of one of the principles of [1]
management.

Identify the principle not followed in the given picture.

a) Cooperation not individualism b) Subordination of individual

interest to general interest

c) Initiative d) Equity

7. It is necessary for an investor to obtain Certificate of Deposits for ₹ ________ lakh. [1]

a) 10 b) 50
 c) 25 d) 5

8. Joining a job marks the beginning of socialisation of the employee at the workplace. [1]
The employee is given a brief presentation about the company and is introduced to his
superiors, subordinates and the colleagues. He is taken around the workplace and
given the change of the job for which he has been selected. This process of
familiarisation is very crucial and may have a lasting impact on his decision to stay
and on his job performance.
Identify the two concepts of one of the functions of management highlighted above.

a) Promotion and Career Planning b) Performance Appraisal and

Compensation

c) Placement and Orientation d) Training and Development

9. Which of the following statement is false? [1]

a. The dividend in growth companies is smaller than that in the non-growth
companies.
b. Increased use of debt always lowers the overall cost of capital of the firm.
c. Financial planning is not equivalent to, or a substitute for, financial management.
d. Financial Planning includes both short-term as well as long-term planning.

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

c) option (b) d) option (c)

10. Assertion (A): Delegation leads to effective management. [1]

Reason (R): Delegation empowers the employees by providing them with the chance
to use their skills, gain experience and develop themselves for higher positions.

a) Both A and R are true and R is b) Both A and R are true but R is
the correct explanation of A. not the correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

11. Securities Exchange Board of India (SEBI) was established in ________. [1]

a) 2001 b) 1984
 c) 1988 d) 1956

12. Temptations is a food joint in Imperial Mall in Bengaluru. It is becoming popular [1]
among students and working people due to healthy, on-the-go dishes on its menu like
Paneer Wrap, Chickpeas Salad, Grilled Sandwiches, etc. It has now decided to
open two new branches in other parts of Bengaluru. Which financial decision has been
discussed in the above case?

a) Financing decision b) Long-term investment decision

c) Dividend decision d) Short-term investment decision

13. Statement I: The Chapter V of the Consumer Protection Act of 2019 provides for a [1]
mediation process for settlement of disputes at three levels - National, State and
District with all three being attached to the respective commissions.
Statement II: Either on the first hearing or at any later stage, it appears to district
commission that there exists elements of settlement which may be acceptable to the
parties, it may direct them to give their consent for settlement of dispute through
mediation within forty five days.

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

c) Statement I is correct and d) Statement II is correct and

Statement II is not correct. Statement I is not correct.

14. R-Ox Ltd. wants to increase their market share by 4.5% in next two years. It spent a [1]
lot of money to hire specialized people for framing their plans, collecting important
facts about environment who took lot of time to frame plans for the company. The
competition has started increasing, and it is not able to beat its competitors because it
has already spent a huge amount. The plan failed and company suffered a huge loss.
Identify the limitation of planning stated in the given case.

a) Planning is a time-consuming b) Planning involves huge cost.

process.

c) Planning may not work in a d) All of these.

dynamic environment.
15. Financial Management aims at: [1]

a) Keeping the risk under control b) All of these

c) Achieving effective deployment d) Reducing the cost of funds

of such funds procured

16. Statement I: Marketing is concerned with exchange of goods and services from [1]
producers to consumers or users in such a way that maximises the satisfaction of
customers’ needs.
Statement II: Gathering and Analysing Market Information is important for making
an analysis of the available opportunities and threats as well as strengths and
weaknesses of the organisation and help in deciding what opportunities can best be
pursued by it.

a) Both the Statements I and II are b) Statement I is correct and

not correct. Statement II is not correct.

c) Statement II is correct and d) Both the Statements I and II are

Statement I is not correct. correct.

17. Vimal Masala and Sons is a manufacturer of tobacco products. It decided to increase [1]
profits by at least 20% in the next quarter. It has many options.
i. To increase the working hours of labourers without additional payment.
ii. To employ children from the local community.
iii. To sell its products outside the schools and colleges.
It opted the (ii) and (iii) options to achieve the target.
Identify the function of management described in the above para.

a) Planning b) Controlling

c) Organising d) Directing

18. Match the functions of management in Column I with their explanation in Column II: [1]
(i) Setting goals in advance and developing a way of achieving them
(a) Planning
effectively and effectively.
 (b) (ii) Establishing an atmosphere that encourages employees to do their
Organising best.
(c) Directing (iii) Determining what activities and resources are required.
(d)
(iv) Determining what activities and outputs are critical to success.
Controlling

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

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

19. ________ are essential ingredients of sound working capital management. [1]

a) All of these b) Efficient cash management

c) Efficient receivables d) Efficient inventory management

management

20. Controlling function of an organisation is: [1]

a) Backward looking b) Forward looking

c) Forward as well as backward d) None of the above

looking

21. After completing his MBA degree, Aman joined a multinational company Zeyovya [3]
Ltd. His job demands long hours and commitment to the organisation. He is
responsible for integrating diverse elements and coordinating all the activities of the
business and for its impact on society. His job is complex and stressful.
a. Identify the level of management at which Aman joined the organisation.
b. State any two functions to be performed by Aman at this level other than those
discussed in the para.

22. State the role of supervisor in the directing function of management. [3]

OR
 After completing his bachelor's in computer science, Abhijeet joined an IT consultancy
firm. He observed there that the senior management more often communicated failures
than successes. They rarely shared any good news related to the growth of the firm or give
any recognition to its employees for their extraordinary contributions towards the firm. As
a result, Abhijeet never felt encouraged enough to work up to his full potential and started
exploring other avenues for employment.
In context of the above case:
a. Identify and explain the element of directing in the absence of which the employees
don't feel encouraged to work.
b. State the importance of this element as identified in part (a) by giving any two suitable
points.

23. Explain the following as factors affecting Financing Decision: [3]

i. Fixed operating costs and
ii. Cash flow position of the company

24. Under the Consumer Protection Act 2019, a consumer is a person who uses or [3]
consumes goods or avails of any service. Comment.

OR
State any three points which highlight the importance of consumer protection from
consumer’s point of view.

25. Explain any three limitations of planning function of management. [4]

OR
Explain 'Method' and 'Rule' as types of plans.

26. How does controlling help in efficient use of resources and how does it facilitate [4]
decision-making? Explain.

OR
State the meaning of controlling.

27. D&D Ltd. Co. is a large manufacturing unit. Recently, the company had conducted the [4]
'time' and 'motion' studies and concluded that on an average a worker could produce
120 units per day. However, it has been noticed that average daily production of a
 worker is in the range of 80-90 units. What steps will you suggest to ensure that the
actual performance is in accordance with the performance as per time and motion
studies?

28. Explain the concept of ‘Motivation’ and ‘Leadership’. [4]

29. Aditya Khosla, the Managing Director of ‘D.L.W. Ltd.’ and Rajesh Puri, the Finance [4]
Manager were discussing about avenues of investing the idle funds of the company.
Aditya Khosla was of the opinion that money should be invested in the capital market
whereas Rajesh Puri, being more conservative, felt that it would be better if the
investment was made in the money market. Since the economy was buoyant, the
Managing Director convinced Rajesh that they should take advantage of it and invest
in the capital market to get good returns. Ultimately it was decided to invest the idle
funds in the capital market.
i. What kind of instruments should the company buy?
ii. Why is the capital market expected to give a better return in a buoyant economy?
State the reason.
iii. Why and how safe are the securities in this market as compared to the money
market?

30. As a well-informed consumer, what kind of quality certification marks you will look [4]
for before buying 'products? Specify and 6 points.

31. What is meant by Selection? Explain any five steps involved in the process of [6]
selection of employees.

OR
What is staffing? Explain any five points of importance of this function.

32. Explain, with examples, the various dimensions of business environment. [6]

OR
Bright Services is a taxi service provider. The company is targeting a revenue of 50 crore
rupees this year. However with the passage of time it has found entrance of new service
providers in the market which were not expected at one stage of time. It has a good team
of technicians, drivers, software providers, etc. The company has decided to adopt to such
continuously changing circumstances. It knows that if it has to expand in new countries it
 will have to learn the basic differentiating factors like traffic rules, technological aspects,
etc. Thus it understands that conditions are different in different countries.
Which features of Business Environment are discussed in the above case? Which force is
discussed above?

33. What is meant by formal organisation? Explain any three features of formal [6]
organisation.

34. After acquiring the necessary knowledge and skills on starting an Aloevera Farm, [6]
Ashok wanted to be the leading manufacturer of Aloevera products worldwide. He
observed that the products were expensive as the demand of the products was more
than the supply. He was also keen to promote methods and practice that were
economically viable, environmentally sound and at the same time protecting public
health.
Ashok's main consideration was about the amount of money paid by the consumers in
consideration of the purchase of Aloevera product. He also thought that competitors
prices and their anticipated reactions must also be considered for this. After gathering
and analysing information and doing correct marketing planning, he came to know
that the consumers compare the value of a product to the value of money they are
required to pay. The consumers will be ready to buy a product when they perceived
that the value of the product is at least equal to the value of money which they would
pay.
Since he was entering into a new market, he felt that he may not be able to cover all
costs. He knew that in the long run the business will not be able to survive unless all
costs are covered in addition to a minimum profit.
He examined the quality and features of the products of the competitors and the
anticipated reactions of the consumers. Considering the same he decided to add some
unique features to the packaging and also decided to provide free home delivery of the
products.
The above case relates to a concept which is considered to be an effective competitive
marketing weapon. In conditions of perfect competition most of the firms compete
with each other on this concept in the marketing of goods and services.
i. Identify the concept.
ii. Explain briefly any four factors discussed in the above case related to the concept
so identified.