3 PRACTICE PAPER

Time: 90 minutes Max. Marks: 40

General Instructions:
(i) The Question Paper contains 3 sections.
(ii) Section A has 24 questions. Attempt any 20 questions.
(iii) Section B has 24 questions. Attempt any 20 questions.
(iv) Section C has 12 questions. Attempt any 10 questions.
(v) All questions carry equal marks.
(vi) There is NO negative marking.

SECTION–A
1.
‘In order to be successful an organisation must change its goals according to the needs of the
environment.’ Which characteristic of management is highlighted in the statement?
(a) Management is dynamic (b) Management is goal oriented process
(c) Management is group activity (d) Management is all pervasive
2.
Customer’s satisfaction alone can ensure success. Which marketing concept holds this view?
(a) Production concept (b) Product concept
(c) Marketing concept (d) Selling concept
3.
Planning is the _____________ function of management.
(a) First (b) Second
(c) Third (d) Fourth
4.
Which component of business environment resulted in the relaxation of ban imposed on the
Foreign Direct Investment?
(a) Economic Environment (b) Political Environment
(c) Social Environment (d) Legal Regulatory Environment
5.
When the method of sales promotion is adopted in quick sessions by a company, this reflect
__________ .
(a) Crisis (b) Goodwill
(c) Competition (d) Happy future
6.
Which one is not correct in respect of delegation of authority?
(a) Increase in administrative work (b) Development of subordinates
(c) Convenience in business expansion (d) Quick and better decision possible
7.
According to Taylor’s Differential Wage System the worker who achieves the production of
standardised units in a definite period of time is paid at _____________ .
(a) High rate (b) Low rate
(c) Medium rate (d) None of these

Practice Papers 1
 8. __________ develop relationship.
(a) Publicity (b) Advertisement
(c) Sales Promotion (d) Personal Selling
9.
Functional foremanship is used at _____________ level.
(a) Top-level (b) Middle-level
(c) Lower-level (d) None of these
10. To be able to practice in India lawyers have to become members of the Bar Council which
regulates and controls their activities.
Identify the feature of profession to which the above case is related.
(a) Well-defined body of knowledge (b) Restricted entry
(c) Professional association (d) Ethical code of conduct
11. Planning of different departments is _____________ .
(a) Independent (b) Individual
(c) Mutually dependent (d) None of these
12. Under what function of management the relationship between different posts (positions) is
explained?
(a) Planning (b) Communication
(c) Organisation (d) Supervision
13. Match the various ‘Levels of Packaging’ in Column-I with their respective examples in
Column-II:
Column-I Column-II

(a) Primary Packaging (i) A big card board box which is containing say 100 units
of shaving cream tubes.

(b) Secondary Packaging (ii) A shaving cream tube.

(c) Transportation Packaging (iii) A card board box of shaving cream.

(a) (i), (iii), (ii) (b) (ii), (iii), (i)

(c) (iii), (ii), (i) (d) (iii), (i), (ii)
14. Which one of the following sequence of process of management is correct?
(a) Directing, Planning, Controlling, Organising, Staffing
(b) Directing, Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Directing, Controlling
(d) Organising, Planning, Staffing, Controlling, Directing

15. To become a chartered accountant in India a candidate has to clear a specified examination
conducted by the Institute of Chartered Accountants of India.
Identify the feature of profession to which the above statement is related.
(a) Professional association (b) Ethical code of conduct
(c) Service motive (d) None of the above
16. Which factor is not included in Micro Environment?
(a) Customer (b) Public
(c) Supplier (d) Production Capacity

2 Business Studies–XII: Term–1

 17. ‘A proper place for everything and everything in its right place’, with which order is this
statement connected as explained in the principle of order?
(a) Material (b) Social
(c) Both of these (d) None of these
18. __________ is compulsory for advertisement.
(a) Expenditure (b) Effort
(c) Both the above (d) Television
19. The managing director of Shobhna Pvt. Ltd. Ms Anvi Goyal’s view is that “proper organisational
techniques help in the accomplishment of work and promote both the efficiency of operations
and the effectiveness of results.”
Identify that the view of Ms Anvi Goyal is related to which function of management?
(a) Planning (b) Organising
(c) Directing (d) Controlling
20. At what managerial level planning is needed?
(a) Top level (b) Middle level
(c) Lower level (d) All the levels
21. __________ is called marketer.
(a) Satisfaction Seeker (b) Satisfaction Provider
(c) Seller (d) Service Provider
22. The attitude of the government officials towards business may have either positive or negative
impact upon business.
Which factor of general environment of business is highlighted by this statement?
(a) Technological environment
(b) Political environment
(c) Social environment
(d) Legal environment
23. Match the techniques of scientific management in Column-I with their respective statements
in Column-II:

Column-I Column-II

(a) Simplification (i) It aims at eliminating unnecessary diversity of

products.

(b) Time study (ii) It refers to find out one best way of doing the job.

(c) Method study (iii) The objective is to determine labour costs.

(a) (i), (iii), (ii) (b) (ii), (iii), (i)

(c) (i), (ii), (iii) (d) (ii), (i), (iii)

24. _____________ divides the burden of taking managerial decisions which helps in taking quick
and best decisions.
(a) Centralisation (b) Decentralisation
(c) Both the above (d) None of the above

Practice Papers 3
 SECTION–B
25. Suhasini is working as branch manager in Fabmart. In Suhasini’s organisation the objective is
procurement and sale of traditional Indian handloom and handicraft items. They sell fabrics,
furnishing, readymades and household items made out of traditional Indian fabrics. Suhasini
has to decide quantities, variety, colour and texture of all the above and then allocate resources
for their purchase from different suppliers or for their inhouse development.
Identify that which function of management is hereby performed by Suhasini?
(a) Planning (b) Organising
(c) Staffing (d) Directing
26. In a company, on the basis of several observations it is determined that standard time taken by
the worker to make one cardboard box is 30 minutes. So in one hour she/he will make 2 boxes.
Assuming that a worker has to put in 8 hours of work in a shift and deducting one hour for rest
and lunch, it is determined that in 7 hours a worker makes 14 boxes @ 2 boxes per hour.
Identify the technique of scientific management used in this case.
(a) Method study (b) Motion study
(c) Time study (d) Fatigue study
27. Miss Sita Rani Chopra is the General Manager in ‘Sita Sales Ltd.’ The company has 56 stores
in the whole of India, through which the company makes its good reach to the customers.
The company’s goods have a good hold in the market. In order to avail of this situation, Miss
Chopra had decided to increase the number of stores to 300. The information of this decision
has been communicated to all the departments; namely, finance, purchase, sales, production,
personnel, etc.
Identify the stage of ‘planning process’ which is being completed by Miss Chopra.
(a) Setting objectives (b) Developing premises
(c) Identifying alternative courses of action (d) Evaluating alternative courses
28. Statement I: Coordination is considered as a separate function of management.
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.
29. A company was marketing ‘water purifiers’ which were very popular due to their 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 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
30. The goal of the Radha retail store is to increase sales and the goal of the Spastics Society of
India is to impart education to children with special needs. Management unites the efforts of
different individuals in the organisation towards achieving these goals.
Identify the characteristics of management discussed above.
(a) Management is all pervasive (b) Management is a goal oriented process
(c) Management is multi-dimensional (d) Management is a continuous process

4 Business Studies–XII: Term–1

 31. In order to successfully realise the objectives of an organisation, first of all it is ensured which
activities will have to be performed. In the list of activities, all the activities, both big and
small, are included. But it is not possible to set up separate departments for all the activities.
Some similar activities are put together in the same department. In this way some necessary
departments are set up. The reason for doing so is to exercise control over unnecessary
administrative expenses.
Identify the concept under which similar activities are put together and departments are set
up.
(a) Assignment of duties (b) Establishing reporting relations
(c) Identification and division of work (d) Departmentalisation
32. (i) Delegation of authority is inevitable and decentralisation is voluntary.
(ii) Scope of delegation of authority is limited and the scope of decentralisation is broad.
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
33. Sulochna Maliwal is working as the Production Manager in the ‘Rakshit Medicines Pvt. Ltd.’
She is to prepare the Production Budget for the calendar year 1.1.2020 to 31.12.2020. While
preparing the budget for her department, she considered it proper to mainly keep in view the
Corona virus spreading world-wide. Keeping this fact in mind, in the beginning months, in
order to face the virus, she gave preference to preparing the necessary material rather than
the other items. Due to the planning done in this manner, the company got a big success.
Which particular point of importance of planning do you learn about from the event described
above?
(a) Planning provides direction.
(b) Planning reduces the risk of uncertainty.
(c) Planning reduces overlapping and wasteful activities.
(d) Planning promotes innovative ideas.
34. Assertion (A): Management has features of both art and science.
Reason (R): The practice of management is an art. However, manager can work better if
practice is based on the principles of management.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
35. ‘Gulati Saree Kendar’ is of the view that leaving the customers alone will not help. 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 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

Practice Papers 5
 36. Ms Radha, a sales manager of ‘Star Bulb Ltd.’ has to negotiate a deal with a buyer. She finds
that if she can offer credit period of 50 days she is likely to clinch the deal which is supposed
to fetch the company net margin of say ™50 crores. Now the company gives power to the
manager to offer a credit period of only 30 days.
Which principle of Fayol is violated here?
(a) Discipline (b) Authority and responsibility
(c) Unity of command (d) Unity of direction
37. Environment is a source of various resources for running a business. To engage in 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
38. ‘Himalaya Ltd.’, is engaged in manufacturing of washing machines. The target of the
organisation is to manufacture 500 washing machines a day. There is an occupational
specialisation in the organisation which promotes efficiency of employees. There is no
duplication of efforts in such type of organisation structure.
Identify the type of organisation structure described above.
(a) Divisional Organisation (b) Functional Organisation
(c) Informal Organisation (d) None of the above
39. ‘Aziz Surgicals’ is such a manufacturing firm as manufactures the different items used in
hospitals. One year, on account of the apprehension of a virus spreading fast, all of a sudden
there was an increase in the demand for ‘masks’. It was being planned to manufacture masks
in a large quantity, with this objective there were so many rounds of meetings of the partners
of the firm. In order to know the reality of facts the specialists were invited, on whom there
was a lot of expenditure. This process consumed so much time that by the time the final
decision could be taken, the apprehension of the virus passed away. As a result, there was a
sharp fall in the demand for masks. The money and time of the company were both misspent.
Identify the ‘limitation of planning’ in the event described above.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning reduces creativity.
(d) Planning involves huge costs.
40. All the members of a cricket team start doing any activity according to their own will in the
course of the play. The reason for this was that the team did not have any capable captain.
Whenever, the team played, it was defeated. When the manager of the team realised this, he
changed the team’s captain. The new captain divided the different activities of the game among
the players according to the individual’s interest and caliber. Now the team started winning
the game. The objective of the team was victory, earlier as well as now. But earlier there was no
integration in the efforts of the players of the team, but now it had been established.
Identify the characteristic of coordination in the paragraph given above.
(a) Coordination integrates group efforts
(b) Coordination is a continuous process
(c) Coordination is an all pervasive function
(d) None of the above

6 Business Studies–XII: Term–1

 41. Principles of science are based on cause and effect relationship. For example, the phenomenon
of an apple falling from a tree towards the ground is explained by the law of gravity.
Identify the feature of science to which the above statement is related.
(a) Systematised body of knowledge (b) Principles based on experimentation
(c) Universal validity (d) None of the above
42. In a meeting of top level management of Krishna Ltd., it is decided that lazy personnel should
be dealt with sternly to send the message that everyone is equal in the eyes of management.
There should be no discrimination against anyone on account of sex, religion, language, caste,
belief or nationality etc.
To which principle of management the decision of the company is related to?
(a) Stability of personnel (b) Equity
(c) Order (d) Scalar chain
43. ‘Maruti Vega Ltd.’ entered into the market with coloured television and have now 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
44. Anita opened her own travel agency, sometime back. She assigned work to her three employees
in the following manner ‘Shreya, you are incharge of air plane, train and bus reservations’.
‘Ankit, you will take care of accommodation booking’. ‘Sahil, you will keep track of online
queries and credit card payments’. I want regular reports from the three of you.
Identify the concept of management discussed above.
(a) Decentralisation (b) Delegation
(c) Centralisation (d) Organisation structure
45. Mr Hari Mohan and Ms Malti Rana both are fast friends and working as managers in Mata
Fabrics Ltd. They are playing a very important role in the company. Through their efforts
quality output is maintained, wastage of material is minimised and safety standards are
maintained.
Identify the management level at which are they working.
(a) Top Management (b) Middle Management
(c) Supervisory Management (d) None of these
46. ‘Neerja Milk Producer Pvt. Ltd.’ was established to produce tasty and nutritious dry milk
for small children. The company gave its product the brand name ‘Mother’s Love’. The
company publicised its product very much and produced the goods of supreme quality. Being
impressed by the quality of the product, the people purchased the ‘Mother’s Love’ brand in
no time. Here one particular thing was that the company had lain its full emphasis on the
packaging of their product. On the milk box were written the ‘instructions of use’. Besides, it
was also written that ‘mother’s milk is the best’. To write this was the legal requirement. The
company was very much successful and within a days, it became the leader in its industry.
Which ‘dimension of the business environment’ is perceived from the event quoted above?
(a) Technological Environment (b) Political Environment
(c) Legal Environment (d) Economic Environment
47. ‘Your Departmental Store’ is a big shop of the articles of daily use. It is situated in the centre
of the city, and is running successfully for the last many years. On getting influenced by the
success of this store, five more stores got established around it. As a result, the competition
increased. On the other hand, because of the very good economic condition of the country, the

Practice Papers 7
 income of the people got increased. Now, there was a change in their demand, and they started
asking for the newer and newer products. Meanwhile, there were elections in the country and
there was a change of government at the centre. The new government has adopted a tough
attitude towards business. On account of all these reasons, it has become difficult to run the
store successfully.
Which particular feature of business environment in the above event has been described?
(a) Relativity (b) Uncertainty
(c) Complexity (d) Inter-relatedness
48. Assertion (A): A good ‘Market Offer’ is the one which is developed after analysing the needs
and preferences of the potential buyers.
Reason (R): A product will be purchased only if it is perceived to be giving greatest benefit
or value for the money.
(a) Both (A) and (R) are true, and R is the correct explanation of A.
(b) Both (A) and (R) are true, and R is not the correct explanation of A.
(c) (A) is true but (R) is false.
(d) (A) is false but (R) is true.

SECTION–C
Read the text given below and answer the questions (49-54) based on it.
‘Hayaram’ is a famous chain selling a large variety of products in the Indian market. Their
products include chips, 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. Match the variables with their relevant statements.
49. “Their products include chips, biscuits, sweets and squashes.”
(a) Promotion mix (b) Place mix
(c) Price mix (d) Product mix
50. “It charges a comparatively higher price than its competitors.”
(a) Promotion mix (b) Place mix
(c) Price mix (d) Product mix
51. “It regularly uses different communication tools to increase its sales.”
(a) Promotion mix (b) Place mix
(c) Price mix (d) Product mix
52. “It has five of its own retail shops.”
(a) Promotion mix (b) Place mix
(c) Price mix (d) Product mix
53. “Hayaram also sells its products through various grocery stores.”
(a) Product mix (b) Price mix
(c) Promotion mix (d) None of the above
54. “Hayaram offers regular discounts to its customers.”
(a) Price mix (b) Promotion mix
(c) Both (a) and (b) (d) Product mix

8 Business Studies–XII: Term–1

 55. On the basis of the changes taking place in the Business Environment, ‘Delhi Motors Limited’
took the decision that now the survival in the market could be possible only by adopting the
Modern Technology. It implemented this decision. To do the production by using the Modern
Technology, the company had to appoint, in a large number, the specialists in this technology.
As soon as these people entered the company, the employees were divided into two groups:
One group was of the specialists and the other of all the rest of the employees. The company’s
environment began to deteriorate. To cope with this situation, the company had to call a team
from outside, which removed the differences cropped up among the employees.
Which point of importance of coordination has been mentioned in the paragraph given above.
(a) Specialisation (b) Growth in size
(c) Functional differentiation (d) None of the above
56. Bright Ltd. is manufacturing detergent. It has separate departments for finance, marketing,
production and human resource development etc. All of them have specialised persons.
Collectively they achieve production and sales targets of the company.
Identify Fayol’s principle of management in above case.
(a) Discipline (b) Unity of command
(c) Division of work (d) Authority and responsibility
57. The present government wants to give the skilled youth full opportunity to come forward. The
government’s intention is that the youth should display their skill by coming forward. In order
to make their skill fully realise, the government launched the ‘Start up India Scheme’. Mainly,
in this scheme it is declared that the person who brings something new related to business
(as new process, new article, new service, etc.) will be helped by the government in several
ways. The youngmen understood this scheme and took full advantage from it. Nowadays they
have got employment for themselves as well as are providing employment to several other
unemployed young men.
Identify the factor of business environment to which the above stated event is related.
(a) Economic Environment (b) Social Environment
(c) Technological Environment (d) Political Environment
58. ‘Artistic Art Gallery’ is a big company which produces the paintings showing modern art and
such like other material. Once the sales department of the company received big orders for
preparing some special kind of material. But his information was not delivered in time to the
production department. The production department continued its production on the basis of
its experience in the years gone by. Thus, the necessary activities of the company could not be
taken up and there was a big heap of unnecessary production. As a result, the company had to
suffer a big loss.
Which particular point of the importance of planning did the company fail to avail of? Identify
on the basis of the event described above.
(a) Planning provides direction.
(b) Planning reduces the risk of uncertainty.
(c) Planning reduces overlapping and wasteful activities.
(d) Planning promotes innovative ideas.
59. The newly appointed manager of Sodhi Iron Ltd. Mr Om Bharti is of the opinion that even a
small production activity like loading pig iron into boxcars can be scientifically planned and
managed. This can result in tremendous saving of human energy as well as wastage of time
and materials.
Identify the principle of scientific management highlighted here.
(a) Harmony, not discord
(b) Science not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) Cooperation, not individualism

Practice Papers 9
 60. The CEO fo E-solutions Pvt. Ltd. is of the opinion that decentralisation awards greater
autonomy to the lower levels of management as well as divisional or departmental heads. This
allows them to function in a manner best suited to their department and fosters a sense of
competition amongst the departments. Consequently, with each department doing its best in a
bid to outdo the other, the productivity levels increase and the organisation is able to generate
more returns which can be used for expansion purposes.
Identify the point of ‘Importance of Decentralisation’ mentioned here:
(a) Quick decision making (b) Relief to top management
(c) Facilitates growth (d) Better control

Answers of Practice Paper-03

1. (a) 2. (c) 3. (a) 4. (d) 5. (a) 6. (a) 7. (a) 8. (d) 9. (c) 10. (c)
11. (c) 12. (c) 13. (b) 14. (c) 15. (d) 16. (d) 17. (a) 18. (c) 19. (b) 20. (d)
21. (b) 22. (b) 23. (a) 24. (b) 25. (a) 26. (c) 27. (a) 28. (d) 29. (c) 30. (b)
31. (d) 32. (a) 33. (b) 34. (a) 35. (a) 36. (b) 37. (a) 38. (b) 39. (d) 40. (a)
41. (a) 42. (b) 43. (b) 44. (d) 45. (c) 46. (c) 47. (c) 48. (b) 49. (d) 50. (c)
51. (a) 52. (b) 53. (d) 54. (b) 55. (a) 56. (c) 57. (d) 58. (c) 59. (b) 60. (c)

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10 Business Studies–XII: Term–1