क ीयिव ालयसं गठनबगलू संभाग

KENDRIYA VIDYALAYA SANGATHAN BENGALURU REGION

थम ी-बोडपरी ा- 2024-2025
FIRST PRE-BOARD EXAMINATION- 2024-2025

CLASS: XII MAX. MARKS:80

SUBJECT: BUSINESS STUDIES (054) TIME: 3 HOURS

• This question paper contains 34 questions.

• Marks are Indicated against each question.
• Answers should be brief and to the point.
• Answers to the questions carrying 3 marks may be from 50 to 75 words.
• Answers to the questions carrying 4 marks may be about 150 words.
• Answers to the questions carrying 6 marks may be about 200 words

Q.No QUESTIONS MARKS

1. Suhasini is one of the most successful managers of her company, 1
‘Hightech limited’. She uses her creativity and initiative in handling
challenging situations at work. The knowledge gained by her during a
student days at a renowned management institute as well as through
her observation and experience over the years is applied by Suhasini in
skillful manner in the context of the realities of a given situation. She
often reads book and other literature in various fields of management
to keep her knowledge updated an aspect of the nature of management
is being highlighted in the above description. Identify the aspect.
A. Management as a science
B. Management as an art
C. Management as a profession
D. Management is both art and science

2. Shreya Ltd has been awarded recently with the ‘Best employer of the 1
year Award’. The company has believed in the ideas and suggestions
of its employees. There is selective dispersal of decision-making
authority at all levels. There is no delay in delivery of orders to
customers due to prompt decisions taken by employees. Identify the
concept of management followed by the company.
A. Authority
B. Responsibility
C. Delegation
D. Decentralisation

3. Read the following statements: Assertion (A) and Reason ( R ) Choose 1

the correct alternative from those given below :
Assertion (A) : A bank may use another’s ATM which will decrease
its fixed capital requirement.
Reason (R ) : Availability of financing alternatives reduces the fixed
P a g e 1 | 11
 capital requirement of any company.
A. Both A and R are true and R is the correct explanation of A
B. Both A and R are true but R is not the correct explanation of A
C. A is true but R is false
D. A is false but R is true

4. Read the following statements carefully. 1

Statement -I : The basic function of a stock exchange is the creation
of a continuous market where securities are bought and sold.
Statement -II :The stock exchange provides both liquidity and easy
marketability to already existing securities in the market.
A. Statement I is correct and II is wrong
B. Statement II is correct and I is wrong
C. Both the statements are correct
D. Both the statements are Incorrect.

5. Just as the phrase ‘water everywhere and not a drop to drink’ amplifies 1
the fact that despite 2/3rd of the earth being water drinkable water is a
scarce commodity so may also be said of finding ‘the right person for
the right job’.This statement is related to which process of
management?
A. Selection process
B. Staffing process
C. Recruitment process
D. Organising process

6. India’s launched its most advanced Geo-imaging satellite which will 1

allow better monitoring of the subcontinent, including its borders with
neighbouring countries by imaging the country 4 – 5 times a day. The
satellite is capable of near real time monitoring of floods and cyclones.
The factor constituting the business environment being discussed
above is :
A. Social environment
B. Economic environment
C. Technological environment
D. Political environment

7. Vanita went to a supermarket for grocery shopping. She bought 1kg of 1

corn maize flour from the supermarket. On reaching home when she
opened the packet, she found worms inside it. She was disappointed
and told her son about the same. Her son asked her to check the label.
When she checked the label of the packet, she found that maize flour
was stale and beyond the expiry date. She approached the salesperson
at the supermarket who replaced the maize flour immediately. When
she thanked the salesperson, she was told that it was the policy of the
supermarket to satisfy the customers. He further told that satisfied
customer not only lead to repeat sales but they also provide good

P a g e 2 | 11
 feedback to the prospective customers which helps in increasing the
customer base of the business.
Identify the point of importance of consumer protection from the point
of view of the supermarket which is helping them to increase the
customer base:
A. Long term interest of the business
B. Moral justification
C. Social responsibility
D. Government intervention

8. Read the following statements: Assertion (A) and Reason ( R ) Choose 1

the correct alternative from those given below :
Assertion (A) : Controlling ensure efficient use of resources.
Reason (R) : Each activity is performed in accordance with the
predetermined standards and norms.
A. Both A and R are true and R is the correct explanation of A
B. Both A and R are true but R is not the correct explanation of A
C. A is true but R is false
D. A is false but R is true

9. Joining a job marks the beginning of socialisation of the employees at 1

the workplace. 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 charge 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. Placement and orientation
B. Training and development
C. Performance appraisal and compensation
D. Promotion and career planning

10. Umang was working as a ‘Production Manager’ at ‘LG Papers Ltd’. 1

the company had launched new eco-friendly paper straws in the
market. He was given a target of producing 5000 straws a day, By the
general manager. In spite of making the employees work over time,
Umang could not meet the target.
On investigation, it was found that the employees had not received the
right training to manufacture these eco-friendly papers straws. Saudi
employees were sent for special training. The function of management
which helped Umang in identifying that he could not meet the target
is:
A. Planning
B. Organising
C. Directing
D. Controlling

P a g e 3 | 11
11. Vikrant joins his father’s business of Organic masalas, near Kotgarh in 1
Himachal after completing his MBA. In order to capture a major share
of the market, he decided to sell the product in small attractive
packages by using the latest packaging technology. His father
suggested that they hire financial consultants to estimate the amount of
funds that would be required for the purpose and timings when it
would be required. The concept being discussed by Vikrant’s father,
links which financial decision with the investment decision ?
A. Dividend decision
B. Financial planning
C. Capital structure decision
D. Financing decision

12. When can an appeal be made to Supreme Court? 1

A. Where the value of go to a service along with a compensation
does not exceed ₹ 2 crores
B. Where the value of goods or services along with the
compensation exceed ₹ 2 crores irrespective of appeal made
any level
C. Where the case has been originally filed at National
Commission and the aggrieved party is not satisfied with the
decision of National Commission.
D. Where the case has been filed at the district commission and
the aggrieved party is not satisfied with the decision of
National Commission.

13. Match the dimension or element of business environment in column I 1

with their respective explanations in column II.
COLUMN I COLUMN II
a. Economic environment i. Banks reducing interest rates
on housing loans
b. Political environment ii. An increasing number of
working women
c. Legal environment iii. Alcoholic beverages are
prohibited to be advertised on
‘Doordarshan’
d. 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)
C. (iii), (ii), (i), (iv)
D. (i), (iii), (ii), (iv)

14. ‘Coconut Joy Ltd.’, is manufacturing chocolates, biscuits, cakes and 1

other similar products. The company is not generating enough profits.
Sourav, the Marketing manager of company got a survey conducted to
find out the reasons. The finding of the survey revealed that in spite of
better quality, the customers were not able to distinguish the product of

P a g e 4 | 11
 the company from its competitors. Though the customers wanted to
buy the products of ‘Coconut Joy Ltd’. Again and again because of its
good quality, but they were not able to identify its products in the
market. Because of this, the sales of the company could not pick up
resulting in inadequate profits. Sourav, the Marketing manager now
realised that ‘Coconut Joy Ltd’. Had forgotten to take one of the most
important decisions related to the product.
What decision should ‘Coconut Joy Ltd.’ take so that its customers are
able to identify its product in the market?
A. Pricing
B. Branding
C. Packaging
D. Labeling

15. Sanjana was a supervisor at a ‘Annapurna Atta’ factory. The factory 1

was producing 200 quintals of Atta every day. Her job was to make
sure that the work went on smoothly and there was no interruption in
the production. She was a good leader who would give orders only
after consulting her subordinates and workout the policies with the
acceptance of the group. Identify the leadership style being adopted by
Sanjana
A. Autocratic leadership
B. Democratic/Participative leadership
C. Free rein leadership
D. All of these

16. Shweta went to a reputed beauty salon for highlighting her hair. She 1
was told by the beautician that if she agrees to the package of ₹5,000
then she will get two hair spas worth ₹1,200 each free. Shweta agreed
to the offer. While highlighting her hair, the beautician spilled
chemical on Shweta’s face and it went inside her left eye. Shweta was
in pain. When she went to the doctor she was diagnosed with Cornea
inflammation. Later, she gave a legal notice to the beautician accusing
her lack of expertise. Identify the consumer right which is violated in
the above case.
A. Right to safety
B. Right to be assured
C. Right to seek redressal
D. Right to be informed

17. JSW Steel Ltd. is manufacturing steel at its plant in India. It is 1

enjoying increased demand for its steel as economic growth of the
country is about 8%. It is planning to set up a new plant to avail the
benefit of increased demand. It is estimated that it will require about
₹4,000 crore for setting up a plant and about ₹600 crore for other
expenses to start the new plant. To collect the above mentioned funds,
the sources to be used and the quantity to be collected from different
sources had to be considered. The concept discussed about is
____________.
A. Financial management
P a g e 5 | 11
 B. Financial planning
C. Capital structure
D. Investment decision

18. ‘Temptation’ is a food joint in Imperial Mall in Bengaluru. It is 1

becoming popular 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. Long-term investment decision
B. Short-term investment decision
C. Dividend decision
D. Financing decision

19. Dilsha went to a free eye camp and got her eyes operated for cataract. 1
The surgery was not done properly due to which she lost her vision.
Where can she file a complaint under consumer protection act?
A. District Commission
B. State Commission
C. National Commission
D. None of these

20. Read the following statements carefully. 1

Statement -I :Capital structure refers to the mix between owners and
borrowed funds.
Statement -II : Capital structure can be calculated as debt-equity ratio
or as the proportion of debt out of the total capital.
A. Statement I is correct and II is wrong
B. Statement II is correct and I is wrong
C. Both the statements I and II are correct
D. Both the statements I and II are not correct.

21. Super fine rice limited has a share of 55% in the market. The 3
company’s policy is to sell only on cash basis. In 2015 for the first
time, the company’s number one position in the market had been
threatened because other companies started selling rice on credit basis
also. But the managers of super fine rice limited continued to rely on
their previously tried and tested successful plans, which however
didn’t work because the environment does not remain static. This led
to a decline in the rice sales of super fine rice limited. The above
situation is indicating two limitations of planning which led to a
decline in its sales. Identify these limitations.

OR

Gautam decided to start a chocolate manufacturing business. He sets

the target of earning 10% profit on sales in the first year. As a good

P a g e 6 | 11
 businessman, he was concerned about the future of the business, which
was uncertain. He gathered information that the demand for chocolates
is increasing day by day. He used this information as the base for
future planning and shared it with his team. On the basis of the
gathered information he scheduled a meeting in the following week to
find innovative ways to achieve the objects.
List the first two steps which have been followed by Gautam that are
related to the process of one of the functions of management.

22. Mr. Agarwal the CEO of ‘Medicare hospitals’ a leading chain of 3

hospitals, decided to reward the good work of the doctors of
hisorganization.For this,he instituted two running trophies, a ‘Health
care Achiever’s Trophy’ to acknowledge and appreciate the tireless
efforts of the doctors who rendered selfless services to the patients and
another ‘Beti Bachao Trophy’ to recognise the outstanding work done
by the doctors in saving the girl child.
The CEO also wanted to improve the health services in rural areas all
over the country.He decided that all the doctors must work in rural
areas for at least six months.He also decided that the paramedical staff
should be employed locally.
A. Identify incentive provided by ‘Medicare hospitals’ to its
doctors through running trophies.
B. Write two other incentives under the category identified in case
(A).

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. Jagan Industries Ltd raised ₹20 crores by issuing 12% debentures. It 3
has three options to invest the funds.
Particulars Option I Option II Option III
Rate of expected returns 9% 15% 12 %
Suggest with reason which proposal the company should opt.

24. With rapid advancements in the field of replacing manual work with 3
machines a robot named ‘Chitti’ has been invented and developed and
is likely to get the citizenship of the country of its origin.
It has led to a stage where machines are being used in place of human
beings. ‘Chitti’ is doing all types of work whether routine or hazardous
and even answering the queries of people. However, this issue has to
be carefully looked into keeping in mind the consumer attitude
towards product innovations, problem of unemployment and its impact
P a g e 7 | 11
 on the quality of life. Through the orders of the decisions of various
commissions and agencies at center, state or local level, the Indian
Government is playing a very significant role in balancing the use of
human and machine power. Various dimensions of business
environment are being discussed in the above para
By quoting the lines from the above identify any explained any three
dimensions

25. ‘Kortigo fabrics’ was started by Ashish in 2001 to sell bedsheets, 4

towels comforters, pillows, cushions, bathmats etc.It is now a famous
name and its branches are across India.To manage the work all over
India, it has eight teams- two each for North, South, East and
West.Ashish spends a considerable amount of time to develop an
orderly pattern of group effects among different teams and to secure
unity of action in pursuit of a common purpose.To ensure suitable
allocation of task to the various members of the teams and to see that
the tasks are performed with harmony among the members he tries to
balance the different teams at different locations

a. Identify and explain the concept of management discussed in the

above para.
b. Also explain any two points of importance of the concept
identified in (A) above.

26. After passing his secondary school examination, David left the school 4
at the age of 15 years and started getting training under his father. His
father, a renowned electrician, had worked for many companies. He
everyday started accompanying his father on work and watched him
carefully while working. David was a good learner and learnt the
techniques of work quickly. Now his father started passing on the
tricks of the trade to David. With the passage of time David acquired
high level skill and became well known electrician at Indore. Big
business houses started calling him for electrical wiring

a. Name the method of training discussed in the above para

b. State any three benefits which David could get on being trained

OR

Mr Raman is a human resource manager of Shanti Hospital in Nellore.

He has to appoint nurses for the hospital. For this, he has conducted
preliminary interviews. Since patients in the hospital are of different
types, he has also conducted test to find out the candidates maturity
and emotions in dealing with the patients. He has also conducted tests
to know about the candidates ability to take decisions
Explain the remaining steps that Mr Raman should take to complete
the selection process.

27. A manager has to extract work from four different employees who 4
have different perspectives towards their jobs. Ahuja has a comfortable
P a g e 8 | 11
 life and comes in a Rolls Royce gifted to him by his rich father in law
and is maintained out of earnings of his wife who is a CEO of reputed
MNC. Bandari is very talented but is not satisfied with the routine
work assigned to him. Mr.Chadda likes his work but is worried that he
might not have enough money after retirement. Mr.Daya is not very
social and is always seen fighting with his coworkers. The manager
hires you as a management consultant to advise him to overcome the
situation using Maslow’s theory.
Identify and explain with reason the type of needs to be fulfilled in the
above case.

28. ‘ Planning without controlling is meaningless’ Discuss. 4

OR

Explain how planning and controlling are both backward looking, as

well as forward looking functions .

29. Varsha after completing her fashion designing course from Indian 4
Institute of Fashion Technology planned to enter into designer clothing
venture. She had to address issues like her target customers, channel of
distribution to be used pricing policy etc. Identify the type of plan that
Varsha needs to develop to provide direction and scope to her
organisation in the long run.

30. What is marketing mix? what are its main elements? Explain. 4

31. Mr Nehra was the chairman of Axis Bank. The bank was earning good 6
profits. Its shareholders were happy as the bank was paying regular
dividends. The market price of their shares was also steadily rising.
The bank was about to announce taking over of Dena Bank. Mr Nehra
knew that the share price of Axis bank would rise on this
announcement. Being a part of the bank he was not allowed to buy the
shares of the bank. He called one of his rich friends, Sudhir and asked
him to invest ₹ 5 crores in the shares of his bank promising in the
capital gains. As expected the share prices went up by 40% and the
market price of Sudhir’s shares was now ₹ 7 crores. He earned a profit
of ₹ 2crores. He gave ₹ 1crore to Mr Nehra and kept ₹1crore with
himself. On regular inspection and by conducting enquiries of the
brokers involved securities and exchange board of India ( SEBI) was
able to detect this irregularity.The SEBI imposed a heavy penalty on
Mr Nehra.
By quoting the lines from the above para, identify and state any two
functions that were performed by SEBI in the above case.

32. Aman started Bulls Eye a company for providing cyber security 6
solutions to business. Its objective is to prevent detect and respond to
cyber attacks and protect critical data. He was a hard working software
engineer and an expert in cyber security. His reputation grew by leaps
and bounds as he was not only a person of integrity but also did his
P a g e 9 | 11
 work with at most honesty and sincerity. The business started growing
day by day.
He was delighted when he was offered a big project by the Ministry of
defense. While working on the project, he found that the volume of
work made it impractical for him to handle all the work by himself.He
decided to expand the team the company maintained a close laison
with a local engineering college. During a campus placement Ishaan
and Brinda were appointed to work for the new project.
He found the new employees capable, enthusiastic and
trustworthy.Aman was thus able to focus on objectives and with the
help of Ishaan Brinda, the project was completed on time.Not only
this, Aman was also able to extend his area of operations.On theother
hand, Ishaan and Brinda also got opportunities to develop and exercise
initiative.

a. Identify and briefly explain the concept used by Aman in the above
case which helped him in focusing on objectives.
b. Also state any four points of importance ofthe concept identified in
(a.) above.

OR

‘Sweets and more’ is one of the India’s most popular brand for snacks
and sweets, it offers a wide range of sweets, Namkeens, cookies and
frozen foods. Its organisational structure comprises separate business
unit in each of the above categories. Each of these units has a manager
responsible for performance, having authority over the unit. Moreover,
each of these units is multi-functional as within each unit, different
functions like production, marketing, finance etc. are performed.
Though this kind of organizational structure leads to increased cost
because of duplication of activities across products, but it provides a
proper basis for performance measurement as revenues and costs
related to each of these business units can be easily identified.

a. Identify the organizational structure of ‘Sweets and More’.

b. State three advantages and two disadvantages of the organisational
structure identified in (a) above which are not discussed in the
above case.

33. The production level of ‘Petronet LNG Limited’ was declining sharply 6
and the company was receiving the complaints from the workers
continuously. The management tried to make a detailed analysis to
find out the reasons. It found Mr. Michael, the production manager, in
order to increase the production, was forcing the workers to work for
long hours without paying any extra wages and rest intervals. The
company decided to infuse new blood and replaced Mr. Michael with
Mr. Robert who had recently completed his MBA from IIM Indore.
Mr. Robert decided to reward for all efforts of the employees apart
from their regular wages, allotted rest intervals and arranged for tea
and snacks so that they could recharge their energy and give their
P a g e 10 | 11
 maximum to enhance productivity.

a. Name and explain the technique of Scientific Management adopted

by Mr. Robert.
b. Suggest Mr. Robert the technique of scientific management to find
out best ways of doing a job.
c. Which principle of Fayol has been violated by Mr. Michael?
Explain.

34. What is meant by ‘Brand Name’ ? State any 4 characteristics of a good 6

‘Brand Name’.

OR

Explain any four factors affecting determination of the price of a

product or service.

P a g e 11 | 11