COMMON PRE-BOARD EXAMINATION 2022-23

Subject: BUSINESS-STUDIES (054)

Date:

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.

Q.N. PARTICULARS MARKS

1 After doing MBA from IIM (A) your brother has been appointed as Vice President in a 1
MNC. The functions he must be performing are:
1. Coordination
2.Planning & Policy formulation
3. Supervision of workers
4.Decision making
a) 1 & 2 above
b) 2 & 3 above
c) 3 & 4 above
d) 2 & 4 above

2 “Equal pay for equal work” is an example of which dimension of business environment. 1

a) Economic
b) Political
c) Social
d) legal

3 Identify the correct sequence of steps involved in the planning process. 1

a) Evaluating alternative courses, identifying alternative course of actions, setting
objectives, developing premises
b) Setting objectives, identifying alternative course of actions, evaluating alternative
courses, developing premises
c) Setting objectives, developing premises, identifying alternative course of actions,
Evaluating alternative courses
d) Setting objectives, developing premises, identifying alternative course of actions,
Evaluating alternative courses

4 Statement I. Societal concept concentrates on large scale production to decrease the cost. 1
Statement II. Advertising is the non-paid form of promotion.

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 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 Keeping in view the need of the hour, companies like Mahindra & Mahindra Automobiles 1
Ltd. as well as Tata Motors have invested heavily in Design Development & manufacturing
of Electric Cars. Which objective of management is highlighted in the aforesaid statement?
a) Organizational
b) Personnel
c) Social
d) None of them

A. a & b above
B. a & c above
C. c & d above
D. a & d above

6 Gross working capital represents the total investment in ___________ assets. 1

a) Current
b) Fixed
c) Tangible
d) Intangible

7 Which of the following defines marketing management? 1

a) The art and science of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating superior customer
value.

b) The development of planning, policies and various marketing strategies to move the
company forward to achieve the goal of profit through selling the product and
services.
c) The process of identifying and managing all marketing process to sell product and
service to the end users at low price.

d) The process of developing and monitoring profit of company’s products and services.

8 Gang plank advocated by Fayol, highlight which feature of management principles? 1

a) Flexible
b) Behavioral
c) Contingent
d) General guidelines

9 “Which of the following statements is not true with reference to planning? 1

a) Planning is a pre-requisite for controlling.
b) Planning does not lead to rigidity.
c) Planning enables a manager to look ahead and anticipate changes.
d) Planning facilitates co-ordination among departments and individuals in the
organisation.

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10 The plans of ABC Ltd. failed as there was no Coordination between the Production, 1
Marketing, Finance & HR Manager.
Assertion: The success of management depends on Coordination.
Reason: Management is a group activity & there is a need to harmonize the efforts of all.
a) Both A & R are correct
b) Both A & R are wrong
c) Only A is correct & R is incorrect
d) Only R is correct & A is incorrect.

CASE STUDY (Q. 11 TO 14) Reliance Infocom has diversified itself into several product
lines: Telecommunications, Engineering, financial services Each subsidiary is self-
sufficient with their-own administrative functions, propagating the belief that people
assume the responsibility for the effective implementation of their decisions and should be
given autonomy. This has reduced the need for direct supervision by superiors, has
promoted flexibility, initiative and faster decision making. The orders of customers are
never delayed, as a result of good policy decisions ot top management. The philosophy of
the top management awards greater autonomy to the lower levels of management.

11 Identify a suitable framework for the company within which the managerial and operating 1
task are to be performed.
a) Functional structure
b) Divisional structure
c) Formal Organisation Structure
d) Informal Organisation structure

12 ldentify the philosophy of the top management highlighted in the above case: - 1
a) Centralisation
b) Decentralisation
c) Delegation
d) None of these

13 This has reduced the need for direct supervision by superiors, has promoted flexibility, 1
initiative and faster decision making." Identify the point of importance of the philosophy of
top management, as highlighted above.
a) Develops initiative among subordinates
b) Develops managerial talent for the future
c) Relief to top management
d) Better control

14 The philosophy of the top management awards greater autonomy to the lower levels of 1
management. Identify the point of importance of the philosophy of top management, as
highlighted above.
a) Quick decision making
b) Better control
c) Relief to top management
d) Facilitates growth

15 Under this method of training, a trainee is put under the guidance of a master worker. 1
a) Internship Training
b) Vestibule training

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 c) Apprenticeship Training
d) Induction Training

16 When Aarchi, in spite of paying the full price of the plot as per the terms and conditions of 1
the allotment letter, was not given the possession of the plot by the builder, she filed a case
in the State Commission. Identify the right of consumers being exercised in the given case.
a) Right to safety
b) Right to be heard
c) Right to seek redressal
d) Right to consumer education

17 Match the following with correct option: 1

Product Mix Statement
1. Packaging a. Bending the customer according to the product
2. Labelling b. It is process of holding and preserving goods between at the
time of purchase and sale.
3. Trade Mark c. Developing the product according to the customer
4. Branding d. It is the process of classification of the product into different
groups

A) 1-c, 2-d, 3-a, 4-b

B) 1-c, 2-a, 3-b, 4-d
C) 1-d, 2-c, 3-a, 4-b
D) 1-c, 2-a, 3-d, 4-b

18 Which of the following can be marketed? 1

a) Product / service
b) A place
c) An idea
d) All the above

19 What out of the following is the example of objective? 1

a) Raising sales up to ™5000 crore

b) Giving employment to 1000 people
c) Raising income by 3%
d) All of these

20 Excel Publishers, a book publishing house published books on various subjects based on 1
new CBSE question pattern before any other publishing house could print it. The
importance of business environment mentioned here is:
a) First mover advantage
b) Early warning signal
c) Tapping useful recourses
d) coping with rapid changes

21 Abhinav Ltd. assured their employees that in spite of recession, no worker will be 3
retrenched from the job.
a) Name and explain the type of incentive offered to the employees.
b) Explain one more incentive of the same category.

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22 Sridhar’s father is working as a section in-charge in a government office. Identify the level 3
of management at which he is working? State any five functions that he has to perform at
this level.

23 Give the meaning of ‘Strategy’ and ‘Rule’ as types of plans. 3

OR
State any three features of planning with suitable examples.

24 Explain ‘unity of command’ and ‘equity’ as principles of general management. 3

OR
Explain briefly ‘Motion Study’ and ‘Fatigue Study’ as techniques of scientific
management.

25 Care Organisation (CO) organised a visit of its members to an old age home to inculcate 4
the habit of social work among them. The visit revealed that the living conditions of the
inmates of the old age home were not hygienic. So, the CO members decided to clean the
premises.
During their cleanliness drive, they realised that the old age home also required pest
control. But some of the inmates of old age home were reluctant for it because they
believed that the pest control may create health problems for them. CO, therefore decided
to provide ethical, safe and odorless pest control.
They showed to the inmates of old age home a pamphlet of the proposed pest control
product which promised easy, inexpensive and long-lasting pest control. The inmates
happily agreed and the pest control was carried out.
It worked for a fortnight but to their dismay the effect started wearing off. CO contacted
the pest control company which kept on postponing their visit. After waiting for a month,
CO filed a cased in the consumer court.
The consumer court was satisfied about genuineness of the complaint and issued necessary
directions to the pest control company.
State the four directions that might have been issued by the court.

26 After doing a course in online trading, Armaan started an online portal for stock trading 4
under the name ‘investment guru’. He met his school friend Ajay after a long time in a
bank where Ajay had come to open a demat account. Armaan urged Ajay to invest in the
forthcoming IPO of a blue chip companies whereas Ajay was inclined to buy existing
securities of the other companies to build his investment portfolio. In context of the above
case:
(a) Identify the two different types of capital market being referred to by quoting lines
from the para.
(b) State any two differences between the two different types of capital markets as
identified in part (a).

OR
Differentiate between Capital Market and Money Market on the basis of:
(a) Liquidity
(b) Duration
(c) Expected Return
(d) Safety

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27 Rajesh is trying to reduce wastage of resources in his company. He is trying to do it in the 4
best possible manner. He has set standards for performance of different types of activities
and is doing his level best to perform according to these set standards to minimise wastage
of resources. Things are not going to be over for him as he will have to look into other
aspects too. He has set up a good monitoring system which helps him know how to
employees ate performing according to set standards as when the employees meet these
standards, they will be given incentives. He is hoping to pull out a good performance from
his team this year.
1. Which function of management has been referred to in the above case?
2. Which benefits of this function of management have been highlighted in the above case.

OR
Explain the following concept with relevance to Controlling:

a) ‘Critical Point Control’

b) ‘Management by Exception’.

28 Naman and Govind after finishing their graduation under vocational stream decided to start 4
their own travel agency which will book Rail Tickets and Air Tickets on commission basis.
They also thought of providing tickets within ten minutes through the use of internet. They
discussed the idea with their Professor Mr. Mehta who liked the idea and suggested them to
first analyses the business environment which consists of investors’, competitors and other
forces like social, political etc. that may affect their business directly or indirectly. He
further told them about the technological improvements and shifts in consumer preferences
that were taking place and hence they should be aware of the environmental trends and
changes which may hinder their business performance. He emphasized on making plans
keeping in mind the threat posed by the competitors, so that they can deal with the situation
effectively. This alignment of business operations with the business environment will result
in better performance.

a) Identify and state the component of business environment highlighted in the above
Para.

b) State any three features of business environment as discussed by Professor Mehta

with Naman and Govind.

29 Describe briefly the various steps involved in the Organising process. 4

30 Few years ago, there were many malpractices, unfair trade practices and frauds and scams 4
were taking place in stock exchange. All these affected investor’s confidence, faith and
trust in stock exchange. The government of India decided to set up a separate body for this
purpose who was given control of stock exchange. This separated ownership and control of
stock exchange.
a) Name the concept which separate the ownership and control of stock exchange.
b) Name the body set up by the government of India to contract the stock exchange.
c) State two objectives of that regulating body.

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31 A public transport corporation has hired 1000 buses for the different routes for the 6
passengers of metropolitan city. In order to fill vacancies, it advertised in the newspaper
and number of applicants applied for the same. The company has to now undertake the
process of selection to identify and select the best.
Explain the first six steps involved in the process.

32 Sara had been working as an assistant manager with Kabir Enterprises for the last ten years. 6
She was very popular amongst her colleagues because of her commitment and dedication
towards the work. When the manager senior to her retired, all her colleagues thought that
now Sara would be promoted. But to everyone’s surprise the vacant post was filled by an
outsider, Mrs. Roma. Sara felt demoralised and her performance started declining. She
would abstain herself often and could not meet her targets. Mrs. Roma was a good leader,
who would not only instruct her subordinates but would also guide and inspire them. She
noticed Sara’s behaviour and felt that her performance could be improved. She started
involving Sara in decision making-issues related to the organisation and made her a part of
high-level joint-management committee. Sara was now punctual in office and her
performance started improving.
a) Identify and explain the function of management being performed by Roma.
b) Name and explain the element of the above function of management which helped Roma
to improve Sara’s behaviour.
c) state any three features of the element identified in (b).

33 Booms Ltd. is a company engaged in production of organic foods. Presently, it sells its 6
products through indirect channels of distribution. But, considering the sudden surge in the
demand for organic products, the company is now inclined to start its online portal for
direct marketing. The financial managers of the company are planning to use debt in order
to take advantage of trading on equity. In order to finance its expansion plans, it is planning
to ‘raise a debt capital of Rs. 40 lakhs through a loan @ 10% from an industrial bank. The
present capital base of the company comprises of Rs. 9 lakh equity shares of Rs. 10 each.
The rate of tax is 30%.
In the context of the above case:
1. What are the two conditions necessary for taking advantage of trading on equity?
2. Assuming the expected rate of return on investment to be same as it was for the current
year i.e. 15%, do you think the financial managers will be able to meet their goal. Show
your workings clearly.
OR
What is working capital? Discuss five important factors which affect of working capital
requirement.

34 Rupali intends to start an enterprise that produces chocolates. Initially, in order to assess 6
the taste and preferences of the people about the chocolates. She used social media and
online surveys. Thereafter, she prepared a detailed SWOT (strengths, weaknesses,
opportunities and threats analysis of her enterprise to devise a strategy that will give her an
edge over the competitors. Based on her analysis of the market, she decided to launch
sesame and jaggery based chocolates under the brand name ‘Desi Delight’. She has decided
to fix up the price of chocolates relatively at lower level in the beginning and later on as the
demand picks up she may revise the prices.
In the context of above case:

a) Identify the elements of marketing mix being taken into consideration by Rupali
b) Explain briefly the functions of marketing highlighted here.

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 c) Do you think she has selected an appropriate brand name for her product? Why or
why not? Give a reason for your answer.

OR

Explain various philosophies of marketing management with suitable examples.

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