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First Term Examination, 2016 17

Subject: Business Studies
Class: XII
Time : 3Hrs. M. M : 80

General Instructions:
(i) Answer to questions carrying 1 mark may be from one word to one sentence.
(ii) Answer to questions carrying 3 marks may be from 50-75 words.
(iii) Answer to questions carrying 4-5 marks may be in about 150 words.
(iv) Answers to questions carrying 6 marks may be in about 200 words.
(v) Attempt all parts of a question together.

(i) 1 |
(ii) 3 50-75 |
(iii) 4-5 150 |
(iv) 6 200 |
(v) - |

1. Give the name of the framework within which managerial and operating tasks are
performed.

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2. Med + Ltd., a company manufacturing pharmaceuticals, organized a seminar on

Measure to increase productivity for the lower level team of Production Department. The
Resource person emphasized on the following points:
It is important to know how to utilize completely the capacity of the workers. The latent
(hidden) fire to their capacity or ability has to be fed with the butter. This results in
brilliant of work efficiency. It is necessary to identify what excites people to work for the
attainment of a desired objective so as to induce them to act in a desired manner.
Identify the concept of management being highlighted by the resource person as the key
to increase productivity.
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3. What is meant by Follow-up action as a step involved in the planning process?

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4. A well-known Indian electronic brand New Tron Ltd. Entered into collaboration with a
Japanese firm to produce new segment to LEDs. The Managing Director decided to launch
its IPO and go public by issuing equity shares worth Rs50 crores in the financial market.
But due to recession, they thought of taking loan from a financial institution. The time
period left for arranging huge funds was less. The Finance Manager arranged funds
immediately at an interest rate of 11.25% p.a. whereas the current rate of interest in the
market was 10.5% p.a.
On the basis of above case, identify whether the Finance Manager was efficient and
effective?

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11.25%
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5. At which level to management directing takes place?

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6. Give one reason as to why principles of management are not rigid prescriptions.
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7. DEMAT account has been introduced where physical share certificates of an investor are
converted to an equivalent number of securities in electronic form or directly credited to
DEMAT A/C.
Identify the environment factor which led to this change.

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8. Name the department performing staffing function of management in big organizations.

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9. Cafee is a leading MNC brand of coffee. The company is manufacturing coffee with 7
brand names:
Expresso, Cappuccino, Americano, Caffe Latte, Cafau laet, Caf Mocha/Mochachino,
Caramel Macchiato. Each flavor is packed in the packing of 10 gms, 20 gms, 30 gms, 40
gms, 50 gms, 60 gms, 70 gms, 80 gms, 90 gms, 100 gms, 150 gms, 200 gms, 250 gms, 300
gms, 350 gms, 350 gms, 400 gms, 450 gms, 500 gms, 1 kg, 2kg, 3 kg, 4kg, 5kg.
In this way, the company sells coffee of different brands in different packets. But the CEO
of the company, Mr. Manish has observed that the labour and material costs of the
company are rising.
(i) At which level to management is Mr. Manish working?
(ii) Which technique of scientific management has been overlooked by the company?
(iii) How can this situation be corrected?
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10. Mrs. Sangeeta, Finance Manager of Zee Kay ltd. Was awarded Best Employee of the Year
award in the recent meeting. With her dedication, hard work, vision and far sightedness,
the company progressed by leaps and bounds. She has now been assigned the task of
preparing financial blue print of the next five years. She has precasted the sales for the
next five years. She also collected the data in respect of possible profits in the coming
years. In this way, she could know how much of capital would be available from within the
business.
The rest of the funds will be arranged from outside the business.
(i) Identify the financial concept referred above.
(ii) Write any two points of importance of the concept identified in (i).
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(i) |
(ii) (i)
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11. Describe any three points of importance of directing function of management.

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12. India has the highest motoring accident rates in the world. Thus to increase road safety,
the government considered a number of alternatives. It was decided that all the
automakers would have to provide airbags, anti-lock breaking and speed warning system
in the cars.
(i) Identify the function of management discussed in the above case.
(ii) State any two relevant features of the function identified in (i) on the basis of above
para.
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(ii) (i)
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13. Differentiate between formal and informal organization on the following basis:
(i) Origin
(ii) Authority
(iii) Nature

(i)
(ii)
(iii)

14. Explain by giving any four points, why managements is important in any organization.
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15. Yumhoo was the most successful internet company in 1994. It was pioneer in providing
e-mail, chat, messenger services etc. to its customers. The company almost enjoyed a
monopoly in its early years. At that time, it got several opportunities to purchase some
very famous social media sites at very less price but at that time, Yumhoo did not realize
the value of those social media sites, which are No. 1 sites these days. The company
ventured in many fields but had specialization in none. Because of this, it lost most of its

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 value. In 2008, its value was 2,95,000 crores but few back, an American Telecom company
has finalized the deal for purchasing it for just 32,000 crores. There were several other
reasons responsible for its collapse. The company failed to change itself in accordance
with the changing environment. It kept working in old style. It kept working in old style.
It failed to recognize the opportunity that number of customers using internet were
increasing day by day. Also lack of effective leadership, new talents, new vision were other
bottlenecks in the companys growth.
With reference to above case, identify and explain the relevant points of significance of
understanding business environment.
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16. Explain any four factors affecting the choice of capital structure of a company.
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17. Two best friends, Rohan and Sam, after completing their class XII in 2015, met at the
School annual Alumni meet, 2016. Their school principal came to talk to them as Rohan
was school topper (Science stream). The Principle enquired about what were they both
doing these days. Rohan has cleared the entrance exam and was pursuing MBBS from a
reputed Medical college. After 4 after years, he will get degree from Medical Council of
India and start practicing as a doctor. Sam (an average student), who belonged to an
affluent business family, joined his family business after his fathers death, 7 months back.
He was pursuing graduation from National open school and was serving his company as
Managing Director.
On the basis of above para, identify and explain the main features of a profession. Also,
write your views on whether management is a profession or not.
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18. The supervisor performs a very important role in an organization by performing multiple
functions. Explain any four such functions.
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19. Production manager of Rapid Pvt. Ltd., an MBA from IIM, Lucknow took special care of
the interest and ability of his subordinates while distributing work among them. He was
of the firm opinion that worker should be given one work again and again so that he may
become expert in it. He should be given an opportunity, in making and executing plans.
His role in the organization should increase by giving him more anatomy to exercise his
powers. At the same time, in order to instill the spirit of dedication and satisfaction, they
must be paid atleast that must by which they are able to establish a reasonable standard
of living. If all the above are implemented well, the labour will be expected to give priority
to organizational objectives over individual objectives. Identify quoting lines from the
above, the principles of management in the above case.
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20. State any five points which highlight the important of delegation of authority.
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21. in summer vacations 2016, the students of History (Class XI + XII) of a reputed school
Ignited minds were taken for education excursion for three days tour of Historical
monuments of Rajasthan. The purpose was to bridge the gap between theoretical
knowledge and practical experience. The school decided that students who secured 90%
and above in their previous classes would be eligible for excursion on First Come, First
Serve basis. The HOD of History took the necessary steps for prevailing concessional
students Indian railway ticket. A list of daily activities for 3 days was also prepared. It was
also impose a penalty of 100 - on those students who are found littering in the train.
Quoting lines from the above para, identify the different types of plans.
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22. Mr. Kabir worked as a manager in a company manufacturing stationary items for 10 years.
Later the thought of starting his own One person company, (OPC) as he had acquired the
skills and expertise in past years.
He started his own venture and decided to donate 1% of its profits for Education of firl
Child.
He divided the organization into six major departments: Production, purchase, Marketing,
legal, human Resources and finance. After a month of starting its operations, he called
upon the meeting of all the Departmental heads in his office and told the production,
Marketing and finance Department Managers to be very vigilant as their department were
very critical to the success of the business. Short coming in Purchase, Personal or legal
department would not affect much the success of business.
Therefore, Mr. Kabir determined deviation tolerance limits for the three critical
departments.
(i) Identify the functions of managements referred above.
(ii) Describe the relevant concepts of the functions identify in (i).
(iii) Write any one value of followed by the company.

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23. Training is beneficial both for organization as well as for the employees. Explain any
three benefits training for the organization and any three towards the employees.
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24. Trenz Ltd. Is manufacturing Textiles, Cosmetics and Kitchenware items. The company
has the recruiting all female employees. It has recruited female managers (freshers)
directly from a management institute located in the city. Each of its produce is headed by
different managers:
(a) Ms. Padmini is looking after textiles. She believe in decentralization and takes
decisions regarding different works by consulting her subordinates.
(b) Ms. Sunita, head to Cosmetics, takes little interest in managerial functions and
subordinate are lefts on their own.
(c) Ms. Rama, is heading kitchenware items. She has kept all the authority in her own
hands and makes employees perform the work exactly as per her orders.
(i) State the specific source and type of recruitment used by the company above.
(ii) identify the leadership styles practiced by the three heads.
(iii) Which style according to you, is the best style?
(iv) State any one value adopted by the company.
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 (i) ?
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(iii) - ?
(iv) |

25. Mr. Harsh Khanna is the finance Manager in Bodmo Ltd., a company manufacturing fancy
baskets from cane and bamboo. The company is located neat the tribal areas of Tripura. It
is providing employment to the tribal people and has opened primary school for providing
free education to the children of their employees. The company is selling fancy basket in
local as well as international markets. Its location near tribal areas is one of the favourable
factors as input and raw materials are easily available. The workforce is motivated and
efficient as the company offers good financial incentive to them.
(i) Identify and explain the factors affecting working capital requirement of the company
based on above para.
(ii) Identify any two values followed by the company.

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