D.A.V.

PUBLIC SCHOOL THANE

SESSION: 2023-2024
PRACTICE QUESTION PAPER
(FINAL EXAMINATION)
BUSINESS STUDIES (054)
DATE: TIME: 3 HOURS
STD: XII MAX MARKS: 80

General Instructions:
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3 Answer should be brief and to the point.
4. Answers to the questions carrying 3 marks may 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.

1 When the jobs of similar nature an organisation are grouped under functions like production, [1]
finance, marketing and human resource and further these major functions are marked as
separate departments it leads to creation of a ______________structure.

(a) Divisional (b) Functional

(c) Either (a) or (b) (d) None of the above

2 Leisure Ltd. is a multi product company in Mumbai. It deals in products like stationery, [1]
books, music instruments, laptops and mobile phones etc. The company has a functional
structure with separate heads for production, marketing and finance. To facilitate
specialisation Vijay Kumar, the General Manager of the company decided to group books,
music instruments, stationary etc. under 'Eduproducts' and laptops and mobile phones under
'Electroproducts. Identify the step in the organising function of management being described
above.

(a) Identification division of work (b) Assignment of duties

(c) Departmentalisation (d) Establishing reporting relationships

3 The process of planning involves include a number of expenses on boardroom meetings, [1]
discussions with professional experts and preliminary investigations to find out the viability of
the plan. The above lines mention a limitation of planning function of management. Identify
the limitation.

(a) Planning leads to rigidity (b) Planning may not work in a dynamic environment
(c) Planning reduces creativity (d) Planning involves huge costs

4 Madhav Ltd. is a company selling dairy products to various parts of North India. Two months [1]
1
 before Jaikrishna Ltd., a Haryana based company entered Delhi market with a similar range of
products. State the impact of entry of Haryana based Jaikrishna Ltd. on the working capital
requirements of Madhay Ltd.

(a) Inflation (b) Business cycle

(c) Level of competition (d) Scale of business

5 The Production Manager of a company came to know about the availability of raw- materials [1]
at cheaper rates for a short period of time from a vendor. For this he wrote a letter to the
Managing Director of the company for getting sanction. But because of procedural delays in
getting this sanction and procuring funds from the Finance Manger, the order could not be
placed. Identify the type of communication barrier that led to procedural delays and because of
which the company could not get the advantage of procuring raw material at cheaper rates.

(a) Semantic barrier (b) Psychological barrier

(c) Personal barrier (d) Organisational barrier

6 Meehul's father is a renowned electrician. He worked for many companies. Therefore Meehul [1]
started getting training under his father. His father started passing on the tricks of the trade to
Meehul and with the passage of time Meehul acquired a high level skill and became a well-
known electrician at Banaras and got a placement in a big company. Name the method training
discussed in the above paragraph.

(a) Vestibule training (b) Apprenticeship training

(c) Induction training (d) Internship training

7 The earnings of Gumer Ltd. have been highly fluctuating in past three years. Consequently the [1]
company has declared a low dividend in the present year. Identify the factor related to
dividend decision being described above.

(a) Cash flow position (b) Growth opportunities

(c) Stability of earnings (d) Stability of dividends

8 After completing his graduation when Jay went to his ancestral village with his parents he [1]
noticed that although the villagers were literate but did not find anything wrong with many
malpractices practices. Most of the fruit and vegetable vendors were not using weights but
stones instead to weigh and sell their merchandise. The food products which were made
locally did not have 'FPO mark'. Villagers So to create awareness among villagers about their
rights Jay decided to distribute handouts. State the Right' which Jay has exercised by doing so.

(a) Right to be heard (b) Right to seek redressal

(c) Right to consumer education (d) Right to safety

9 Entrepreneurs and business owners are constantly dealing with two big staffing issues: [1]
attracting top talent and retaining it. In order to push employees to do their best in every part
2
 of their job, organisations need to be constantly rewarding them for their best work. Identify
the element of directing being mentioned above.

(a) Supervision (b) Communication

(c) Leadership (d) Motivation

1 It is suitable for filling casual vacancies when work load is high or when certain number of [1]
0 permanent workers are absent. Identify the related source of recruitment.

(a) Direct Recruitment

(b) Labour Contractors
(c) Advertising on Television
(d) Placement Agencies and Management Consultants

1 Keeping in view the growing demand for its products, 'Subh Ltd.' He has decided to open four (1)
1 new outlets in Jaipur, Kanpur, Pune and Ahmedabad by the end of the year. Identify the type
of decision being described in the above lines.

(a) Long term decision (b) Short term decision

(c) Dividend decision (d) Financing decision

1 Laksh, an experienced stock broker advised his client Prem to invest in the shares of Angel (1)
2 Limited as the company has declared high dividends. Since an increase in dividend is
perceived as a good news and stock prices react positively to it. Identify the related factor of
dividend decision being described in the above lines.

(a) Tax rate

(b) Growth prospects
(c) Stock market reactions
(d) Access to capital markets

1 Abel purchases 91 days financial instrument with a face value of Rs. 4,00,000 for (1)
3 Rs.3,80,000. On the maturity date, he receives Rs.4,00,000. The minimum value of purchase
these type of financial instrument is Rs. 25,000 and in multiples thereof. Identify the type of
financial instrument being described above.

(a) Treasury bills

(b) Commercial papers
(c) Certificate of deposit
(d) None of the above

1 One of the common irregularities noted by the Securities and Exchange Board of India during (1)
4 the inspection of a stock exchange was that it was dealing with unregistered sub-brokers.
3
 Identify the related function of Securities and Exchange Board of India
(a) Regulatory function
(b) Protective function
(c) Developmental function
(d) None of the above

1 When is a trade confirmation slip issued to the investor? (1)

5
(a) On placing an order
(b) On execution of the order
(c) On settlement of the order
(d) None of the above

1 Statement I: The depository participant serves as an intermediary between the investor and (1)
6 the depository.
Statement II: A depository is like a custodian bank and keeps securities in electronic form on
behalf of the investor.

(a) Both the Statement I and Statement II are true

(b) Both the Statement I and Statement II are false
(c) Statement I is true but Statement II is false
(d) Statement I is false but Statement II is true

1 Mehak decided to start a tiffin service under the brand name “Annapurna” to increase her (1)
7 family income. To begin with she started supplying tiffin only in the neighbourhood. For
informing the people about her service she designed a beautiful informative pamphlet, got it
printed and started distributing it through the daily newspapers. She has decided to select the
size and shape of the package which will be convenient to open, handle and use for the
consumers. Identify the promotional tool used by Mehak to communicate to the customers
about her tiffin service.

(a) Personal selling

(b) Advertising
(c) Public relation
(d) Sales promotion

1 Assertion (A): Marketing is not merely a business phenomenon. (1)

8 Reason (R): Marketing activities are relevant to profit making organisations only.

(a) Both the statements (A) and (R) are correct and (R) is the right explanation of (A)
(b)Both the statements (A) and (R) are correct but (R) is not the right explanation of (A)
(c) Statement (A) is correct but statement (R) is incorrect
(d) Both statements (A) and (R) are incorrect

1 Assertion (A) The societal marketing concept is the extension of the marketing concept. (1)
9 Reason (R): It not only seeks to find wants of consumers and fill them but also pays attention
4
 to the social, ethical and ecological aspects of marketing

(a) Both the statements (A) and (R) are correct and (R) is the right explanation of (A)
(b) Both the statements (A) and (R) are correct but (R) is not the right explanation of (A)
(c) Statement (A) is correct but statement (R) is incorrect
(d) Both statements (A) and (R) are incorrect

2 Match the following by choosing the correct option. (1)

0
Column A Column B
(i) Name given to all products having a) Brand mark
identical characteristics
(ii) The verbal component of a brand (b) Trademark
(iii) A part of brand which appears in the (c) Generic name
form of a symbol, design, distinct
colour scheme or lettering

(iv) Confers upon a firm the exclusive (d) Brand name

right for use of a name, sign etc.

(a) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)

(b) (i)-(b); (ii)-(a);(iii) (d); (iv)-(c)
(c) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)
(d) (i)-(d); (ii)-(c); (iii)-(b); (iv)-(a)

2 Karutalaam worked as assistant human resource manager in a glass making company. He (3)
1 recently resigned from his job. This is because he felt that his new boss had prejudiced views
towards South Indians and would never take his suggestions.

(a) Identify the barrier to communication being described above.

(b) Describe briefly any two other barriers to effective communication which fall in the same
category of types of barriers.

2 State any two financial incentives other than “ Pay and Allowances” to motivate employees. (3)
2
Or

Describe briefly 'employee participation' and 'job security' as types of non financial incentives.

2 Distinguish between 'delegation' and 'decentralisation' on the basis of (i) Freedom action' (ii) (3)
3 Status and (iii) Purpose.
Or

5
 Distinguish between functional and divisional structure on the basis of (i) Formation (ii)
Responsibilty and (iii) cost

2 During a meeting the source of finance that should be used for modernisation of existing plant (4)
4 of the company were being discussed. Mr. Anuj Munjal, the Finance Manger quoted that
'Sensex has soared by 6012 points' in the last three years and also highlighted that the fact that
the operating costs of the company at present is high.

(a) According to you which as a source of finance should be used to raise the funds required
for modernisation of existing plant.
(b) Also, explain the two factors highlighted above which should be kept in mind for taking
this decision.

2 Hima is heading a food product company in Nainital. She believes in systematic dispersal of (4)
5 authority to the lowest level except that which can be exercised at central points. Identify the
concept related to organising being described in the above case. Also, explain any two points
highlighting its importance.

2 Explain the importance of the controlling function of management. (4)

6
2 Ketan's Grandmother made very good boondi laddos. So he decided to start the business of (4)
7 preparation and supplying sweets through home delivery at a production cum show-room
‘Desi Sweets' at Meerut under her guidance. He made a plan forecasting the sales of different
types of sweets in various localities of Meerut for each month of every year to earn a profit of
25% on capital employed. He set a sales target of Rs.15,00,000 in the current year with a 8%
increase every year. He identified a few reputed suppliers from whom he could make
purchases of ingredients. Describe briefly the remaining steps that Ketan needs to perform in
order to complete the process.

2 Describe any four functions of Financial Market. (4)

8
Or

State any four developmental functions of SEBI

2 Bhumika started a company ‘Fresho Ltd’. to manufacture shampoos using herbs found in her (4)
9 village instead of chemicals that are hazardous to health. The package of the product was eco-
friendly and had details like price, quantity, ingredients, directions for use and other relevant
information. It also carries the contact details like address, phone number and e-mail id of
‘Fresho Consumer Services and Grievance Cell'. The shampoos became very popular and she
started getting orders

(a) Identify and explain any two Rights of Consumers discussed above.

(b) State any two responsibilities of a consumer while purchasing a pack of shampoo.
6
3 State any four characteristics of co-ordination. (4)
0
Or

Do you think management has the characteristics of a pure science?

3 What is meant by ‘New Issue Market’? Explain the various methods of floatation of new (6)
1 securities issues in this market.

Or

(a) "Anything that is of value to others can be marketed." Identify and explain the component
of marketing mix being highlighted in the above statement.

b) In light of the above statement identify the thing which is being marketed in each of the
following examples of advertisements in the newspaper
(i) A blood donation campaign
(ii) A visit to city of Udaipur-the city of lakes:
(iii) An upcoming fashion show
(iv) Easy bill payment options

3 In order to fill up two vacancies for the post of Assistant Manger in "Vishv Private Ltd” Mr. (6)
2 Rahul Roy the Human Resource Manager identified one suitable candidate Abhishek from
within the organisation and promoted him to the post of Assistant Manager. For another post,
Mr. Rahul Roy took help of a placement agency and selected Daksh. After three months, Mr.
Rahul Roy observed that Abhishek performance was much better than 'Daksh’s performance
though "Abhishek' was less qualified than Daksh. Hence, Mr. Rahul Roy decided that in future
he will make appointments with the help of an internal source as far as possible Explain any
four reasons on the basis of which Mr. Rahul Roy would have taken the above decision.

Or

Harsh has recruited qualified personnel for various technical and professional jobs. He has
selected five persons for different vacancies in the organisation. After the selection and
placement, Harsh felt the need to increase the skills and abilities, and the development of
positive attitude of the employees to perform their specific jobs better. He also realised that
learning new skills would improve the job performance of the employees. Hence, the company
decided to take action for the same. Name the step of the staffing process regarding which
Harsh decided to take action. Also state the benefits of the action on the organisation

3 Piyush Ltd. is a multinational consulting company with its headquarters at Banguluru. It hires (6)
3 young people from different countries of the world. It is a company in which people dream to
work because of its work-environment, pay and growth prospects. The company has a culture
of open communication and people of nationalities work together in a discrimination free
7
 environment. The behaviour of managers of Piyush Ltd. emphasises kindliness and justice
which ensures loyality and devotion of workers.
It also promotes mutual trust and belongingness among team members. In this way
management of Piyush Ltd. is able to achieve its objectives by promoting team work. By
doing so Managers of Piyush Ltd.. are following some principles of management.

Identify and explain any two such principles.

Or

Raj acquired Gulnoor Ltd. which was not performing well for past many years. In order to
improve the company's performance he decided to incorporate suitable changes He observed
that the methods of production as well as selection of employees in the company were not
scientific. He believed that there was only one best method to maximise efficiency .He also
felt that once the method is developed, the workers of the company should be trained to learn
that ‘best method’. He developed the best method and carry out the necessary training. The
method was created by using several parameters right from deciding the sequence of
operations. place for men, machines and raw materials till delivery of the product to the
customers. This method was implemented throughout the organisation. It helped in increasing
the output, improving the quality and reducing the cost and wastage. Identify and the
principles of scientific management followed by Raj in the above case.

3 2020 Summer Olympics is going to be one of the unique initiatives: Panasonic and Toyota (6)
4 have joined the effort to develop automated helpers. Two of the automatons will take the form
of Games mascots Miraitowa and Someity, programmed to show facial expressions as they
wave at and shake hands with athletes and fans. Field Support Robots will help officials
retrieve hammers and javelins during the throwing events at the Olympic Stadium. Other
robots will be equipped with cameras that can broadcast live action, giving "people that are
physically unable to be present at Games-related locations a chance to virtually attend." An
additional technology will deliver concessions to fans in wheelchairs. There is also a "mobile
suit" that workers can strap into, helping them move heavy bags at the athletes village. The
Tokyo Metropolitan Government has set aside a fund of 400 billion Japanese yen (over 3.67
billion USD) to cover the cost of hosting the Games.
Various dimensions of business environment are being discussed in the above para. By
quoting the lines from the above identify and explain any three dimensions.