NEO CONVENT SR. SEC. SCHOOL, PASCHIM VIHAR, NEW DELHI.

CLASS XII DATE: 15.12.2023

Time: 3 hrs B.St. (054) REVISION TEST M.M. 80
NAME ………. SEC ……. ROLL NO. …… INVIGILATOR’S SIGN …….
Number of pages: 5

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 question carrying 3 marks may be from 50 to 75 words.
5. Answers to the question carrying 4 marks may be about 150 words.
6. Answers to the question carrying 6 marks may be about 200 words.
7. Attempt all parts of the questions together.
1. ‘Maruti Vega Ltd.’ entered into the market with coloured television and have now 1
introduced products like audio systems, air-conditioners, washing machines, etc.
The company is not only offering the products but also handling complaints and
offering after-sales services.
Identify the element of marketing-mix discussed here.
(a) Place mix (b) Product mix
(c) Promotion mix (d) Price mix
2. Match the dimensions/element of business environment in Column I with their 1
respective explanation in Column II
Economic environment (i) Banks reducing interest rates on
housing loans
Political environment (ii) An increasing number of working
women
Legal environment (iii) Alcoholic beverages are prohibited
to be advertised on ‘Doordarshan’
Social environment (iv) A stable government has built up
confidence among the firms to
invest in big projects

(a) (ii), (i), (iii), (iv) (b) (i), (iv), (iii), (ii)
(b) (iii), (ii), (i) (iv) (d) (i), (iii), (ii), (iv)
3. Environment is a source of various resources for running a business. To engage in 1
any type of activity, a business enterprise assembles various resources called inputs
like Money, Machine, Material, Men, etc. from its environment including Financers,
Government and Suppliers.
Which importance of business environment is highlighted by this statement.
(a) It helps in tapping useful resources
(b) It helps in coping with rapid changes
(c) It helps in assisting in planning and policy formulation
(d) It helps the firm to identify threats and early warning signals
4. Statement I: Coordination is considered as a separate function of management. 1
Statement II: Coordination is the force that binds all the other functions of
management.
Both the above statements are:
(a) True
(b) False
(c) Statement (I) is true and statement (II) is false
(d) Statement (I) is false and statement (II) is true.
5. ‘Gulati Saree Kendar’ is of the view that leaving the customers alone will not help. 1
Rather there is need to attract the customers towards it. In other words, goods are
not bought but they have to be sold. The basis of this thinking is that the customers
can be attracted. Keeping in view this thinking, companies concentrate their
 -2-
marketing efforts towards educating and attracting the customers. This company is
therefore of the view: to sell what you have.
Identify the marketing philosophy as mentioned above.
(a) Selling philosophy (b) Product philosophy
(c) Marketing philosophy (d) Production philosophy
6. Identify the concept of management overlooked by the manager, as shown in the 1
picture.

(a) Authority (b) Delegation

(c) Accountability (d) Decentralisation
7. Once the ‘Sharda Club, Delhi’ organised ‘Health Care Week’ for its members. It 1
had a very positive effect on its members. Now the members had become more
careful about their health than earlier. Not only this, the members also acquainted
the people outside the club and take advantage out of it. The changing attitude of the
people towards health was visible in the market also. Now a great demand for sugar
free products, fat free cooking oil and diet coke rose up in the market. The
manufacturers had to immediately increase their production. ‘Sharda Food
Producers, Delhi’ brought/launched these products in the market first of all and
earned a great profit.
Which particular ‘feature of the business environment’ does the event described
above acquaint us with?
(a) Dynamic Nature (b) Inter-relatedness
(c) Totality of External Forces (d) Specific and General Forces
8. Threats refer to the internal environmental trends and changes that will hinder a 1
firm’s performance.
(a) True (b) False
(b) Can’t say (d) Partially false
9. Levels of management in an organisation serve as a _________ line among the 1
different managerial posts.
(a) Strong (b) dividing
(c) Weak (d) straight
10 A sales person Mr Ram of Gupta & Gupta Sales Ltd. is asked to clinch a deal with a 1
buyer and is allowed to give 8% discount by the marketing manager. But finance
department tells him not to offer more than 5% discount.
Which principle of management is violated here?
(a) Unity of direction (b) Centralisation and decentralisation
(c) Division of work (d) Unity of command
11. Financial transactions in a financial market could be in the form of: 1
(i) Creation of financial assets such as the initial issue of shares and
debentures by a firm.
(ii) Purchase and sale of existing financial assets like equity shares,
debentures and bonds.
(iii) Investment in the fixed assets like land and building, machinery etc.
(iv) Declaration of dividends to shareholders.
(a) (i) and (ii) (b)(ii) and (iii)
(c)(iii) and (iv) (d) (i) and (iii)
12. A company was marketing ‘water purifiers’ which were very popular due to their 1
quality and after sales services provided to the customers. The company was a
leading company in the market and earning huge profits. Because of huge profits the
company ignored the after sales services. As a result, its relations with the customers
 -3-
got spoiled and the image of the company was damaged in the public. Top
management became concerned when the profits for the current quarter fell steeply.
On analysis it was revealed that ignoring the after sales services was its reason.
Therefore, the company took all possible measures to protect and promote its
favourable image in the eyes of the public. As a result, the goodwill of the company
improved in the society.
Name the communication tool used by the marketer in the above case to improve its
image.
(a)Advertisement
(b) Sales Promotion
(c) Public relations
(d) Publicity
13. Which of the following is not a feature of primary market? 1
a) There is no fixed geographical location
b) Prices of securities are determined by the issuing company
c) Investor can sell securities in the market
d) Parties involved are issuing company and the investors
14. In case of right issue, shares are issued for: 1
(a) Selected institutional investors
(b) General public
(c) Existing shareholders
(d) Intermediaries like issuing houses
15. Supreme ltd. is a generators manufacturing company. The production manager has 1
divided the work among the workers according to their skills and qualities. He
systematically allocates the work amongst the workforce. This results in increased
productivity thereby lowering the cost of production. Which importance of
organising is highlighted here?
(a) Benefits of specialization
(b) Clarity in working relationship
(c) Adaptation to change
(d) Effective administration
16. Before buying a thing, a customer analyses its cost and the satisfaction that he is to 1
get from it. He will buy the thing only when he feels that its satisfaction will be
more than its cost. Seller is to make the thing while keeping in mind this tendency of
the buyer. A seller, who does not pay heed to the importance that the buyer gives to
the product, certainly lags behind in competition.
Which feature of marketing has been highlighted in the above paragraph?
(a) Customer value (b) Need and want
(c) Creating a market offering (d) Exchange mechanism
17. Which of the following is not a participant in the money market? 1
(a) RBI
(b) SEBI
(c) Mutual funds
(d) NBFCs
18. Under which step of controlling process certain pieces are checked at random for 1
quality as sample checking:
a) Comparing actual performance with standards
b) Taking corrective action
c) Analysing Deviations
d) Measurement of actual performance
19. ‘Agile Pvt. Ltd.’ Manufactures athletic footwear. Owing to its popularity among 1
sports teams across the country, it recently decided to enter into manufacturing of
sports clothing and accessories. The type of organisational structure which is
suitable for company is:
(a) Functional structure
 -4-
(b) Divisional structure
(c) Horizontal structure
(d) Informal structure
20. At Support.com, there is no reward or appreciation for a good suggestion. Thus, the 1
subordinates are not willing to offer any useful suggestions to their superiors.
Identify the type of barrier to communication that has been created in the firm due to
this.
(a) Semantic barrier
(b) Personal barrier
(c) Organisational barrier
(d) Psychological barrier

21. ` Burgers and Fudge `was among the first fast food chains in India which pioneered the concept of family-
style restaurants. However, over the years it started losing business to multinational food chains like
McDonalds and Pizza Hut, etc. and soon had to shut down.
The reason to shut down was the inability of managers to identify, understand, evaluate and to react to the
forces external to their firm.
In the light of the above situation, explain with the help of any two points, how understanding of business
environment is important for managers. 3

22. Explain any three points that highlight the relationship between Planning and Controlling function of
management. 3
23. Explain any three benefits of staffing function of management to the organisation. 3
24. Ananta Ltd. is a firm manufacturing electronic goods. To increase its sales and earn profits, its General
Manager, Kamal is thinking in advance what to do and how to do it. He is also preparing forecasts to reduce
the risk of uncertainty and to achieve its targets. 3
By doing so Kamal is performing an important function of management.
Identify and state the function of management highlighted above. Also explain any two points of importance
of this function.
25. Ankush bought a high end microwave on Diwali from a leading electronic store. The microwave had ISI mark
and Ankush diligently went through the instruction manual so that he could use it properly. However, due to
faulty wiring there was a short-circuit in the microwave. He called up the consumer helpline of the company
many times but no solution was provided by the company. Ankush now decided to file a case in the consumer
court.
(a) Identify and explain the right which Ankush will exercise.
(b) State two responsibilities which Ankush had fulfilled while purchasing and using the microwave. 4
26. Srijjan , after completing his bachelor`s degree in culinary arts from a reputed institute, took over his family
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 Rs. 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. 4
27. Explain the following as factors affecting the working capital requirements of a business : 4
(i) Business cycle
(ii) Operating efficiency
28. Explain any four points of difference between primary and secondary market . 4
29. Pallavi started a wedding planner company `Dreams Unlimited `in 2019 and her target was to be amongst the
top 10 companies in this field within the next three years. For this she employed people having different skills.
 -5-
She worked hard and united the efforts of different people to achieve this goal. The requirements of the
customers in this industry changed very fast and the company adapted to keep pace with the changing
environment. As planned, the company achieved its target within three years. All the employees of the
organisation were happy and satisfied and the effect of management was noticeable in the organisation.
The way Pallavi was managing her business highlights some of the features of management. By quoting lines
from the above paragraph, explain any two such features. 4

30. Explain the following as elements of communication process : 4

(i) Message
(ii) Encoding
(iii) Media
(iv) Decoding
31. F.M. Tech Ltd. is one of the leading information technology service provider company in Delhi. To enable
smooth functioning of the enterprise, job description and rules and procedures related to work processes are
laid down. The company specifies clearly the boundaries of authority and responsibility and there is a
systematic co-ordination among the various activities to achieve organisational goals.
a) Identify and explain the `Type of organisation` discussed above.
b) Explain two merits and two limitations of `Type of organisation` identified in (a) above 6
32. Abhishek studied management principles and techniques of Henri Fayol and F.W. Taylor when he was in class
XII. Now he is trying to apply his knowledge while doing his business. By using different techniques and
scientifically analysing work he found one best way of doing the job. By removing unproductive movements of
the workers he reduces the time to complete the job. Not only this, to increase productivity and to regain
stamina he started giving more rest intervals to his employees. He followed no discrimination policy on
account of sex, religion, caste, etc. in his organisation. He ensured that the compensation should be fair to
both, employees and the organisation.
Identify and explain any two techniques of scientific management and two principles of general management
adopted by Abhishek. 6

33. (a) Explain any three psychological barriers of communication.

(b) Explain any three merits of external sources of recruitment. 6
34. Explain the following as functions of marketing : 6
(i) Gathering and analysing market information
(ii) Customer support services
(iii) Pricing of product
***********************