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Class 12 - Business Studies

Sample Paper 08

Maximum Marks: 50
Time Allowed: 90 minutes

General Instructions:

1. The Question Paper contains 3 sections.

2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.

Section A
1. The principles of management are significant because of:
a. Optimum utilisation of resources
b. Meeting changing enviornment requirements
c. All of these
d. Scientific decisions
2. Gang Plank means ________.
a. Direct Contact
b. Appointment before Contact
c. Contact not allowed
d. Indirect Contact
3. Technological improvements and innovations result in:
a. None of these
b. Increase in tax
c. Render existing products obsolete
d. Reduction in profit margins
4. Select the feature of planning out of the following:
a. Futuristic
b. All of these
c. Primary function
d. Pervasive
5. Which of the following is not an element of delegation?
a. Informal organization
b. Accountability
c. Responsibility
d. Authority
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6. Match the following and select the most appropriate option-
(a) Production concept (i) Quality of product

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(b) Product concept (ii) Customer needs

(c) Selling concept (iii) Quantity of product

(d) Marketing concept (iv) Increase in an existing product

a. (a) - (iii), (b) - (iv), (c) - (i), (d) - (ii)
b. (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii)
c. (a) - (ii), (b) - (i), (c) - (iv), (d) - (iii)
d. (a) - (iii), (b) - (i), (c) - (ii), (d) - (iv)
7. Gang plank is required in ________.
a. unity of command
b. discipline
c. initiative
d. scalar chain
8. At what managerial level planning is needed?
a. Top level
b. All the levels
c. Lower level
d. Middle level
9. Factors that create opportunities and threats to business units is known as ________.
a. external environment
b. macro environment
c. micro environment
d. internal environment
10. Planning leads to rigidity is a:
a. Limitation of planning
b. Importance of Planning
c. Method of Planning
d. Characteristics of planning
11. A tall structure as a:
a. No span of management
b. Narrow span of management
c. Wide span of management
d. Less levels of management
12. Customer satisfaction alone can ensure success. Which marketing concept holds this view?
a. Selling concept
b. Marketing concept
c. Product concept
d. Production concept
13. Panchayats in our country have been given more power to decide and spend funds granted to them
by the government for the welfare of villages. Identify the principle of management highlighted in the
statement:
i. Equity
ii. Centralization and decentralization
iii. Authority and Responsibility
iv. Espirit De corps
a. only ii

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b. iv and i
c. iii and iv
d. only i
14. What to do and how to do is concerned with ________.
a. Contorlling
b. Organising
c. Directing
d. Planning
15. Rise in GDP lead to rise in ________.
a. Cost of Production
b. Increase in new taxes
c. None of these
d. Disposable income of people
16. Which of the following is not true about planning?
a. Planning is a mental exercise
b. Planning is necessary
c. Planning reduces creativity
d. None of these
17. For delegation to be effective it is essential that responsibility be accompanied with necessary:
a. Incentives
b. Authority
c. Manpower
d. Promotions
18. JTM Ltd. launched Buddy line, an exercise book, and comprehensive stationery brand name consisting
of ball pens, gel pens, and geometry boxes after identifying the target market and understanding the
needs and wants of the consumers of that market. All their products were of good quality and eco-
friendly but expensive.
They spent a lot of effort, time and money on developing their products. Their effort paid off and the
demand for the products started growing. Which concept of marketing is being discussed in the above
case?
a. Selling
b. Product
c. Production
d. Societal marketing
19. Functional foremanship is based on the ________.
a. Union is strength
b. Marketing
c. Remuneration System only
d. Principle of division of work
20. Which of the following is a limitation of planning?
a. Planning facilitates decision making
b. Planning promotes innovative ideas
c. Planning does not guarantee success
d. Planning provides directions
21. What is the main constituent of economic reforms?
a. Privatisation
b. Globalisation

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c. Liberalisation
d. All of these
22. The first step of planning is ________.
a. Implementing the plan
b. Follow up action
c. Selecting an alternative
d. Setting objectives
23. The span of management refers to:
a. Length of term for which a manager is appointed
b. Number of managers
c. Number of members in top management
d. Number of subordinates under a superior
24. Under marketing mix which of the following is not a part of Product?
a. Brand Name
b. Quality
c. Design
d. List price
Section B
25. On what basis the principles of management were derived?
a. In the field of business
b. Both in a business non-business field
c. None of these
d. In the non-business field
26. What is the last step in planning process?
a. Follow up action
b. Developing premises
c. Setting objectives
d. None of these
27. Nowadays women are very health conscious which is witches giving rise to increasing demand
for Organic products. This statement is related to the factor of business environment is:
a. Legal environment
b. Technological environment
c. Social environment
d. Political environment
28. Grouping of activities on the basis of product lines is a part of:
a. Functional organisation
b. Delegated organisation
c. Divisional organisation
d. Autonomous organization
29. Right of an individual to command his subordinates is ________.
a. Accountability
b. None of these
c. Responsibility
d. Authority
30. Which of the following plays an important role in introducing a new product to the consumers?
a. Publicity
b. Sale Promotion

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c. Personal Selling
d. Advertisement
31. Which of the following is the technique to find out one best way of doing the job and minimise the
production cost?
a. Method study
b. Fatigue study
c. Motion study
d. Time study
32. Planning seeks to bridge the gap between:
a. Past and present position
b. Past and Future position
c. None of these
d. Present and Future position
33. Which of the following statement indicates globalisation aspect of economic reforms in India?
a. Disinvestment of shares of public sector enterprises.
b. Reduction in number of industries reserved for public sector.
c. Reduction in custom duties.
d. Reduction in GST rates.
34. Which of the following is the right marketing mix for a Television Set?
i. Price, Place, Promotion, Process
ii. Product, price, promotion, process
iii. Product, price, place, process
iv. Product, promotion, price, place
a. iii and iv
b. only iv
c. ii and iii
d. only i
35. Planning is concerned with ________.
a. Looking forward
b. Looking old records
c. Looking back
d. Looking new records
36. Marketing functions does not include:
i. after-sales service
ii. selling
iii. negotiating with government officials
iv. recruiting sales team
a. only i
b. ii and iii
c. iii and iv
d. only iv
37. ________ is the central point in the marketing point of view.
a. Quality of the Product
b. Quantity of Product
c. Customer’s satisfaction
d. Customer’s welfare
38. Properly perform the assigned duty, is ________.

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a. Authority
b. None of these
c. Accountability
d. Responsibility
39. Which concept holds that consumers will favour products that offer the most in quality, performance
and innovative features?
a. Product
b. Selling
c. Production
d. Marketing
40. Which of the following is not correct?
a. Planning reduces the profitability
b. Planning is futuristic
c. Planning is continuous process
d. Planning focuses on achieving objectives
41. Advance understanding of business environment will help in:
a. Developing new principles of management
b. Nothing
c. Privatisation
d. Planning and Policy Formulation
42. Under accountability a person is answerable for the:
a. Growth of comapny
b. None of these
c. Delegation of Authority
d. Final outcome of the assigned task
43. Ranjit purchased a bottle of tomato sauce from the local grocery shop. The information provided on the
bottle was not clear. He fell sick on consuming it. He filed a case in the District Forum and got the relief.
Which important aspect was neglected by the marketer in the above case?
a. Packaging
b. Labelling
c. Publicity
d. Branding
44. ________ cannot be entirely delegated.
a. Authority
b. None of these
c. Accountability
d. Responsibility
45. Nayonika Ltd. has developed a new consumer product. The company wants to promote the product by
creating awareness. The company should make heavy use of ________ in the promotional mix
a. sales promotion
b. advertising
c. personal selling
d. public relations
46. It flows downwards, superior to subordinate ________.
a. Accountability
b. Responsibility
c. Authority

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d. None of these
47. Link with customers is an advantage of this tool of promotion:
a. Sales promotion
b. Personal selling
c. Public relations
d. Advertisement

48. Assertion (A): Management always prefers those workers that insist on the achievement of goals both
effectively and efficiently.
Reason (R): Effectiveness focuses on achieving end result therefore it is more important than
efficiency.

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.
Section C

Question No. 49 to 54 are based on the given text. Read the text carefully and answer the
questions:

Divya is the manager of a well-known company manufacturing handicrafts items. It deals in fabrics,
readymades and household items. She decides all variety, quantity and colour of all the items or
products for maximising sale in the market and also allocate resources for their purchase from
different suppliers. Then she ensures that there is sufficient manpower in the company. She prefers to
use eco-friendly methods of production. She continuously monitors whether production is
proceeding with as per plans and the quality of output is maintained. She tries to maintain safety
standards and also minimizing the wastage of materials. She formulates overall organisational goals
and strategies to achieve desired objectives.

49. Divya decides all variety, quantity and colour of all the items or products for maximising sale in the
market.
The primary function of every manager is ________.
a. Staffing
b. Directing
c. Organising
d. Planning
50. Allocation of resources for their purchase from different suppliers." Which function of management is
highlighted here?
a. Coordination
b. Planning
c. Organising
d. Controlling
51. She prefers to use eco-friendly methods of production. Which objective of management is highlighted
here.
a. Personal
b. Organisational
c. Social

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d. Economic
52. Which function of management ensures actual activities conform to planned activities?
a. Planning
b. Coordination
c. Controlling
d. Directing
53. She continuously monitors whether production is proceeding with as per plans and the quality of
output is maintaine. Which management function is she performing here?
a. Directing
b. Controlling
c. Planning
d. Organising
54. Then she ensures that there is sufficient manpower in the company. Which function of Management
are we talking about here?
a. Staffing
b. Coordination
c. Controlling
d. Organising
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55. For which of the following minimum qualification has not been prescribed?
a. Chartered Accountant
b. Doctor
c. Manager
d. Lawyer
56. What principle of management is violated if an employee gets orders from more than one superior?
a. Scalar chain
b. Division of work
c. Unity of command
d. Unity of direction
57. A correct example of political environment is:
i. money supply
ii. innovation and development
iii. change in preference and taste
iv. profile of political leaders
a. i and ii
b. only iv
c. iii and iv
d. ii and iii
58. Nayan Medicare Equipment Ltd manufactures equipment for surgeons having a unique laser
technique. The equipment can be used by the surgeons only after proper training. Even their
maintenance requires the guidance of specialised engineers. Because of this, the equipment is used in a
limited number of hospitals. The company wants to increase the sale of equipment.
Suggest the promotion tool to be used by the company.
a. Advertising
b. Public relations
c. Personal selling

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d. Sales promotion
59. What is the first step in organising process?
a. Establishing reporting relationship
b. Assignment of duties
c. Departmentalisation
d. Identification and division of work
60. Which of the following is a brand name?
a. All of these
b. Asian Paints
c. Nike
d. Woodland

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Class 12 - Business Studies

Sample Paper 08

Solution

Section A
1. (c) All of these
Explanation: Principles of management are significant or important because of the following reasons:
i. Providing managers with useful insights into the reality
ii. Optimum utilisation of resources and effective administration
iii. Scientific decisions
iv. Meeting changing environment requirements
v. Fulfilling social responsibility
vi. Management training, education and research
2. (a) Direct Contact
Explanation:
A worker cannot directly contact the CEO of the company. If at all she/he has to, then all the
formal levels i.e., foreman, superintendent, manager, director, etc have to know about the
matter.
However, in an emergency, it can be possible that a worker can contact the CEO directly. This
is called Gang Plank.
3. (c) Render existing products obsolete
Explanation: Technological improvements and innovations result in render existing products obsolete.
It means to improve or replace existing products into a new one.
4. (b) All of these
Explanation: Planning is the primary function of management which is pervasive and futuristic.
5. (a) Informal organization
Explanation: Elements of the delegation are:
Responsibility
Authority
Accountability
6. (b) (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii)
Explanation: (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii) is correct.
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7. (d) scalar chain
Explanation: scalar chain
8. (b) All the levels
Explanation: Planning is needed at all the levels of management.
9. (b) macro environment
Explanation: Macro environment creates opportunities and threats to business units.
10. (a) Limitation of planning
Explanation: It is not possible to change the pre-decided plans. With the changing situations, plans
sometimes fail to give positive results. Thus we can say plans lead rigidity.
11. (b) Narrow span of management
Explanation: Narrow span of management means a single manager or supervisor oversees few
subordinates. This gives rise to a tall organizational structure.

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12. (b) Marketing concept

Explanation: Marketing concept focuses on the needs of the buyer.
13. (a) only ii
Explanation: Centralization and decentralization principle of management.
14. (d) Planning
Explanation: Planning involves setting objectives and developing a course of action for the future. It is
deciding in advance as what to do and how to do.
15. (d) Disposable income of people
Explanation: While observing the economic environment, the gross domestic product increases the
disposable income of people of a country will also increase and it will increase demand for products.
16. (c) Planning reduces creativity
Explanation: Planning is an intellectual process. The planners make a prediction for the future by
using their expertise, innovative ideas, and creativity. Thus planning promotes creativity.
17. (b) Authority
Explanation: For delegation to be effective, the authority granted must be equal to the assigned
responsibility. If authority is more than responsibility then it may lead to misuse of authority and If
responsibility is more than authority then the work will not be done effectively.
18. (d) Societal marketing
Explanation: Societal marketing
19. (d) Principle of division of work
Explanation: Functional foremanship is an extension of the principle of division of work and
specialisation to the shop floor.
20. (c) Planning does not guarantee success
Explanation: Planning only provides a base for analysing future. Future is uncertain as the business
environment always keeps on changing. There may be a number of unknown factors that could have
not predicted. Thus planning does not give guarantee success.
21. (d) All of these
Explanation: All of these
22. (d) Setting objectives
Explanation: Thus planning begins with objectives because all the policies, strategies, procedures etc.
are formed to achieve objectives only. Therefore the first step of planning is setting up the objectives.
23. (d) Number of subordinates under a superior
Explanation: The span of management means how many subordinates can be effectively managed by
a manager. It depends upon the capacity and intelligence level of the manager and subordinates, trust
in subordinates, and nature of the job.
24. (d) List price
Explanation: List price is not a part of the product in marketing mix it is the part of price mix.
Section B
25. (b) Both in a business non-business field
Explanation: Principles of management were derived both in the field of business and non-business
field.
26. (a) Follow up action
Explanation: Planning is a continuous process. It starts with setting the objectives and then putting
them into action. One can ensure the proper implementation of plans with proper monitoring by
comparing the actual results with expected. Thus it is the last step of the planning process.
27. (c) Social environment
Explanation: The social environment is the type of environment which focuses on social factors.

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28. (c) Divisional organisation

Explanation: When the size of the organization is large and it deals in more than one type of product.
Thus the structure is formed on the basis of the product is called a divisional structure.
29. (d) Authority
Explanation: Authority is the right to make a decision because of a managerial position. It determines
the superior-subordinate relationship. It arises through the scalar chain informal organisations due to
various job positions. Thus authority is a right to command one's subordinates.
30. (b) Sale Promotion
Explanation: Sales promotion is helpful in the introduction of a new product.
31. (a) Method study
Explanation: Method study
32. (d) Present and Future position
Explanation: Under the planning process, we set objectives and decide in advance the appropriate
course of action for the future. Thus planning bridges gap between present and future position.
33. (c) Reduction in custom duties.
Explanation: Reduction in custom duties.
34. (b) only iv
Explanation: Product, promotion, price, place is correct.
35. (a) Looking forward
Explanation: Managers make predictions for the future not for the past. The past is used as a basis to
make assumptions for the future. So, planning is concerned with looking forward.
36. (d) only iv
Explanation: Recruiting sales team does not include in marketing.
37. (c) Customer’s satisfaction
Explanation: Customer’s satisfaction is the main focus of marketing.
38. (d) Responsibility
Explanation: Responsibility means the obligation of subordinates to perform the duties properly.
Subordinates are bound to perform these duties.
39. (a) Product
Explanation: Product
40. (a) Planning reduces the profitability
Explanation: All others are the characteristics of planning and correct except planning reduces the
profitability.
41. (d) Planning and Policy Formulation
Explanation: Business environment through environment Scanning helps in finding out the
opportunities of the business and strategies can be made to grab these opportunities. The major
planning and policy formulation is done keeping in mind the business environment.
42. (d) Final outcome of the assigned task
Explanation: Accountability is the final step of the delegation process and arises from responsibility. It
means subordinates will be answerable for the non-completion of task or final output. It can not be
delegated.
43. (b) Labelling
Explanation: Labelling was neglected by the marketer.
44. (d) Responsibility
Explanation: Responsibility flows upward. Subordinates will always be responsible to his superior.
Superior can not fully delegate their responsibility.
45. (b) advertising

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Explanation: advertising
46. (c) Authority
Explanation: Authority is the power/right to make a decision. It arises from formal job positions in the
organisation and flows from superior to subordinate.
47. (b) Personal selling
Explanation: Personal selling directly deals with customers.
48. (c) A is true but R is false.
Explanation: Efficiency and effectiveness both are equally important for the achievement of
organisational goals therefore management will prefer only those workers that work both effectively
and efficiently.
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complete study material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams.
Section C
49. (d) Planning
Explanation: Planning
50. (c) Organising
Explanation: Organising
51. (c) Social
Explanation: Social
52. (c) Controlling
Explanation: Controlling
53. (b) Controlling
Explanation: Controlling
54. (a) Staffing
Explanation: Staffing
55. (c) Manager
Explanation: No minimum qualification is prescribed for manager.
56. (c) Unity of command
Explanation: Unity of command principle. If an employee gets orders from two superiors at the same
time the principle of unity of command is violated.
57. (b) only iv
Explanation: Profile of political leaders is a correct example of political environment.
58. (c) Personal selling
Explanation: Personal selling
59. (d) Identification and division of work
Explanation: The steps are
i. Identification and division of work
ii. Grouping the jobs and departmentalisation
iii. Assignment of duties
iv. Establishing a reporting relationship
60. (a) All of these
Explanation: When the company's trade name is used, multiproduct branding is also known as
corporate branding, family branding or umbrella branding. All of these are brand names.

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