PRE-BOARD EXAMINATION 2020-21

CLASS XII
Business Studies
General Instructions:
(i) This question paper contains 34 questions.
(ii) Marks are indicated against each question.
(ii) Answers should be brief and to the point.
(iv) Answers to the questions carrying 3 marks may be from 50 to 75 words.
(v) Answers to the questions carrying 4 marks may be about 150 words.
(vi) Answers to the questions carrying 6 marks may be about 200 words.
(vii) Attempt all parts of the questions together.

1. 'Managers at all the levels need to perform the controlling function to keep a check on the
activities in their respective areas of operation. Which feature of controlling is being referred to?
(a) Controlling is a goal-oriented process. (b) Controlling is looking back.
(c) Controlling is all pervasive. (d) Controlling is forward looking.

2. The principles of management are flexible because____________.

(a) they aim at influencing the behaviour of human beings.
(b) they are dependent upon the prevailing situation.
(c) they can be modified by a manager as per the situation.
(d) they apply to all types of organisations.

3. Match the type of tests in Column I with their meanings in Column II.

Column-1 Column-II

(a) Intelligence Test i) Measures an individual's potential for

(b) Aptitude Test learning new skills
(c) Trade Test ii) Measures the existing skills of an
individual
iii) Measures the level of intelligence of
an individual
(a) (i), (ii), (iii) (b) (iii), (i), (ii)
(c) (i), (iii), (i) (d) (i), (i), (iiI)

4. The financial incentive offered over and above the wage/salary to an employee is _________.
(a) Bonus (b) Productivity-linked wage incentive
(c) Profit sharing (d) Perquisites

5. Which of the following is not a function of stock exchange?

(a) Pricing of securities
(b) Safety of transaction
(c) Holding securities in electronic form
(d) Providing liquidity and marketability to existing securities

6. Good Health Ltd., a pharmaceuticals company, has introduced mosquito repellent bands
under the brand name Taddu' in the wake of outbreak of dengue in various parts of the country.
The product attracted many people from all age groups, especially kids. However, the company
failed to provide adequate guidance for the users on the label of the product in terms of time
period of the effectiveness of the repellent band once its seal is opened. Because of this
ambiguity, many buyers faced problems.
Identify the consumer right which has been overlooked by the company.
(a) Right to safety (c) Right to choose
(b) Right to information (d) Right to be heard
Or
Which marketing function aims at maintaining good customer relationships?
(a) Marketing research
(b) Customer support service
(c) Product planning and development
(d) Branding and grading

7. Grouping of activities on the basis of functions form a:

(a) Decentralised structure (b) Functional structure
(c) Centralised structure (d) None of these.

8. Centralisation refers to:

(a) opening of a head office/centre of importance.
(b) dispersal of decision-making authority.
(c) creating divisions as profit centers,
(d) retention of decision-making authority,

9. _______________ is the technique of scientific management which focuses on separation of

planning and execution function.
(a) Method study (b) Functional foremanship
(c) Time study (d) Motion study
Or
Suhasini, a home science graduate from a reputed college, has recently done a cookery course.
She wished to start her own venture with a goal to provide 'health food' at reasonable prices.
She discussed her idea with her teacher (mentor) who encouraged her. After analysing various
options for starting her business venture, they shortlisted the option to sell readymade and
ready to make vegetable shakes and sattu milk shakes. Then, they weighed the pros and cons
of both the shortlisted options.
Name the function of management being discussed above.

(a) Organising (6) Planning

(c) Directing (d) Controlling
10. Motivation does not help:
(a) to improve performance level of employees.
(b) to change negative/indifferent attitude of employees.
(c) to reduce employee turnover/absenteeism.
(d) to satisfy social needs of employees.

11. Which is the highest level of need in Maslow's theory of Motivation?

(a) Esteem needs (b) Self-actualisation needs
(c) Physiological needs (d) Security needs

12. Which of the following helped to eliminate the use of share certificate in physical form?

(a) Dematerialisation of securities (b) Securities Exchange Commission

(c) Depository Trust Company (d) Fedral Depository Insurance Corporation

Read the following text and answer question no. 13-16 on the basis of the same:
Newrange' is a chain of departmental stores in India with 56 outlets. It sells the best products at
the lowest price. The Human Resource department takes care to select, train, motivate and
retain the employees. Currently, it has 170 full time employees and 30 part time employees.
For top-level management, employees are recruited through private consultants. These
professional recruiters can entice the needed top executives from other companies by making
the right offers. Employees appointed at the entry level are recruited through walk-in. For that, a
notice is placed on the notice board specifying the details of the jobs available. 'Newrange' also
encourages present employees or their friends and relatives to refer candidates. They also visit
some of the reputed educational institutions to hire some of the most talented and promising
students as its employees.
'Newrange' shifts workforce from surplus departments to those where there is shortage of staff
instead of lying them off.

13. Which source of recruitment is used for appointing employees at the entry level?
(a) Casual caller (b) Direct recruitment
(c) Employment exchange (d) Advertisement

14. Apart from top level managers, placement agencies are suitable for which type of
employees?
(a) Technical and professional personnel (b) Fresh graduates
(c) Unskilled labours (d) All of these

15. 'Newrange' shifts workforce from surplus departments to those where there is shortage
instead of laying them off. Which stage of staffing reveal the surplus/shortage of workforce?
(a) Recruitment (c) Estimating manpower requirement
(b) Training and development (d) Performance appraisal
16. Which of the following statements is not correct about recruitment?
(a) Internal sources of recruitment motivates the employees to improve their performances.
(b) Recruitment is a positive process.
(c) Process of recruitment proceeds selection.
(d) External sources of recruitment gives satisfaction to the existing employees.

Read the following text and answer question no. 17-20 on the basis of the same:

Ballerina, a greeting card company provided pre-written cards for every occasion. This formula
made it successful in USA and UK. To get the benefit of the hi-tech consumers who made use
of computer more in their lives, Ballerina even launched a website for e-greetings. Inspired by
its success, it decided to enter France. But to their shock, as compared their target of covering
around 60% of the young population, they could not even reach the figure of 10% as the people
of France preferred to write their feelings in the card on their own rather than the ready made
standardised message. Ballerina, thus designed special cards with beautiful motives and
shapes having ample writing space. Gradually, it was able to grab its market share in France
also.

17. "To get the benefit of the hi-tech consumers who made use of computer more in their lives,
Ballerina even launched a website for e-greetings." Which dimension of business environment is
reflected here?
(a) Economic environment (b) Technological environment
(c) Social environment (d) Political environment

18. Ballerina was successful in UK and USA but failed in France initially. Which feature of
environment is reflected here, most aptly?
(a) Complexity (b) Uncertainty
(c) Relativity (d) Dynamic

19."Ballerina gained success in France, later as it kept its eye on the business environment and
adapted to it'. Which importance of understanding business environment is reflected here?
(a) Helps in tapping useful resources
(b) Helps in coping with rapid changes
(c) Assist in planning and policy formulation
(d) Helps to identify threats and carly warning signals

20. Which of the following pairs is incorrectly matched?

(a) High literacy rate - Social environment
(b) Demonetisation - Economic environment
(c) Statutory labelling of products - Political environment
(d) Trading procedure in stock exchange - Legal environment

21. Explain the type of training that is suitable to train the employees to handle highly
sophisticated machinery and equipments.
 Or
A construction company got a contract for constructing a foot-over bridge. It appointed an
engineer to take charge of the same. The engineer was instructed that the work should be
completed within a period of two months with the maximum cost of 5,00,000. Any negative
variation in the cost beyond 5% should be brought to the notice of authorities immediately. He
was also asked to keep a special check on the supply of construction material as if it is not
supplied in time then, the entire project would get delayed.
Which concept(s) is/are being referred to in the given case? Discuss.

22. Give the meaning of allocative function of financial market. State the consequences of this
function.

23. Identify and explain the importance of a concept of management which aims at distribution
of decision making responsibility among various hierarchical levels.

24. Differentiate between Functional and Divisional Structure.

Or
How does planning lead to economy and efficiency? Explain briefly.

25. Komal bought a car worth Rs.15,00,000. After driving it, she found that the A.C. of the car
stopped functioning. She approached the dealer who refused to look into the matter.

a) Suggest her suitable authority where she can file a complaint under the Consumer Protection
Act, 1986.
(b) What procedure will be followed by the concerned authority to redress her grievance?

26. The Plant Superintendent of Girish Mills was due to retire by the end of the year. Inspite of
the availability of experienced supervisors who can be promoted to handle this responsibility,
still the Human Resource Manager gave an advertisement in the Situation Vacant' column of
the newspaper.
(a) Which source of recruitment was followed by the Human Resource Manager?
(6) What are the benefits of this source of recruitment?
Or
Surtal Ltd. is a distributor of musical instruments. It has different departments, namely,
Purchase, Quality control, Marketing and Finance headed by their respective managers. The
company has almost 150 employees and has a high labour turnover rate. The company
appoints a human resource manager to analyse the situation, who found that the
communication flow in the organisation is affecting the morale of the employees and managers.
The workers fail to adjust with the physical and social aspect of work due to poor organisational
structure, authority relationship and rules and regulations. Explain the problem identified above.
State any two measures to improve the situation.

27. What are the functions of packaging?

28. Harshit wanted to invest his surplus funds into some profitable opportunities. He was
advised by his friend to buy the shares of some reputed companies. He did not know the
formalities to be fulfilled for the same, so his friend acquainted him with a famous broker. The
Broker asked him to fill a client registration form and to open a Demat account.
(a) What is meant by Demat Account and what is its purpose?
(b) List out the other steps that will be followed for the purpose of buying of shares through the
stock exchange.

29. Malini is a well-known businesswoman in the field of publishing. She owes the success of
her business to her own education in business management and her team of certified
management consultants. Therefore, she decides to send both her children Darshit and Pihu
abroad to acquire a degree in business management in their individual area of expertise. She
feels that all over the world there is marked growth in management as a discipline, but still it is
not considered to be a full-fledged profession for certain reasons.
(a) Explain the reasons because of which Malini considers management as a discipline.
(b) Critically examine the various reasons because of which management is not considered to
be a full-fledged profession.

30. Explain the concept of Democratic leadership and state its features.
Or
Write a short note on any four types of employment tests.
31. Alter Ltd., an electric equipment company, had the vision of becoming the national leader in
the supply of solar equipments. To fulfil its mission, it had already set up a plant to manufacture
solar equipments. The company realised that the marketing efforts need to be improved and
given due importance as the demand and the usage of solar equipments is less in the country.
Therefore, to concentrate more on marketing than production, it outsourced the work of
preparing the solar panel to a multi-national company named Solar House. First year saw a
dramatic increase in the demand followed by regular supply. However, it could not continue for
longer as the main company Solar Power Inc., headquartered in Japan, faced a financial crisis
and filed for bankruptcy. This led to a question mark on the vision of Alter Ltd.

(a) Which limitation of Planning is being highlighted in the above case?

(b) Discuss any five other limitations of Planning.

32. A garment manufacturing unit is facing a problem of accumulation of obsolete stock due to
frequent changes in the fashion industry. The Marketing Manager came up with an idea to clear
off the excess stock lying with them. They offered Free dinner coupons worth 500 on purchase
of 6,000 and above.
(a) Which element of marketing mix helped the garment manufacturing unit to solve its
problem? Explain it.
(b) Name the tool used and one of its limitation.
(c) Identify and explain the Marketing Management philosophy being followed by the company.
Or
Ruchin approached Thomas Book, a Tour and Travel Company, to inquire about Europe tour
packages available during summer vacations. The tour coordinator. Rahul, mentioned five
different packages with different combinations of number of day/night packages. He selected
one package of combination of Switzerland and Paris for 6 night/7 days and completed the
procedure for the tour by submitting all the necessary documents along with the payment. He
also asked about category of hotels (3 star or 4 star), climate of the touring countries, currency
of these countries, date of departure, name of the flight, any precaution to be taken, etc.

(a) Identify and briefly explain the consumer rights which Ruchin availed above.
(b) Mention any three responsibilities that a consumer should always keep in his mind while
purchasing any good or availing service.

33. Reh Cables, a small cable manufacturing company, was facing a lot of problem in their
manufacturing process. It had different functional departments headed by the functional
managers. Each department had a goal to achieve. At times, the workers in the production
department would get the instructions from the marketing manager as well. This caused a little
confusion in the minds of the workers. To discuss the problems, the supervisor directly
approached the Managing Director who then called for an interdepartmental meeting with the
production manager, marketing manager, supervisors and the representatives of the workers
from both the departments.
By quoting the relevant lines, identify the principles of management followed and violated in the
above case.

34. Anand Ltd. was running a successful business of manufacturing and selling electric bulbs,
decided to diversify in the field of electric cables. For this, it needed to install a new plant the
minimum cost of which was 2 crores. It had retained earnings amounting to 50 lacs but the rest
was to be raised from the market. The Finance Manager was given the responsibility to decide
the different sources from where the remaining financial requirement could be fulfilled.
(a) Which financial decisions are involved in the above case?
(b) Discuss two factors each to be considered for the above mentioned financial decisions.
Or
Sarah Ltd.' is a company manufacturing cotton yarn. It has been consistently earning good
profits for many years. This year too, it has been able to generate enough profits. There is
availability of enough cash in the company and good prospects for growth in future. It is a well
managed organisation and believes in quality, equal employment opportunities and good
remuneration practices.
It has many shareholders who prefer to receive a regular income from their investments. It has
taken a loan of 40 lakhs from IDBI and is bound by certain restrictions on the payment of
dividend according to the terms of loan agreement.
The above discussion about the company leads to various factors which decide how much of
the profits should be retained and how much has to be distributed by the company. Quoting the
lines from the above discussion identify and explain any three such factors.