DELHI PUBLIC SCHOOL, JODHPUR

Half Yearly Examination (2016 – 17)

Subject – Business Studies
Class – XII
Time: 3 hours M.M. 80

General Instructions :–
1. Please check that this question paper contains 04 printed pages and 25 questions.
2. Answers to questions carrying 1 mark may be from one word to one sentence.
3. Answer to questions carrying 3 marks may be from 50 to 75 words.
4. Answer to questions carrying 4-5 marks may be about 150 words
5. Answer to questions carrying 6 marks may be about 200 words.
6. Attempt all parts of a question together.

Q. 1 The task of packing glass bottles in wooden cases was given to two workers Pawan and [1]
Chaman. Pawan packed 10 bottles in one hour and Chaman packed 15 bottles in one hour.
In a hurry to finish his task Chaman broke two bottles. According to manager both Chaman
and Pawan are effective as well as efficient. Do you agree with the manager ? Give reason
in support of your answer.
Q. 2 Name the function of marketing which is concerned with maintaining smooth flow of [1]
products in the market.
Q. 3 ‘To see whether plans are being implemented and activities are being performed according [1]
to schedule’ is a step of planning process. Identify the step.
Q. 4 ‘Increased awareness for health care has increased the demand for many health products [1]
and services like diet coke, and health resorts. New health products and services have, in
turn, changed people’s life styles.’
Identify and name the feature of business environment highlighted in the above lines.
Q. 5 How will you distinguish between ‘Material order’ and ‘Social order’? [1]
Q. 6 Define ‘organisation as a structure’. [1]
Q. 7 Differentiate between ‘Depository’ and ‘depository participant’. [1]
Q. 8 ‘Myntra.com’ a popular site for online shopping gives various options of payment to its [1]
customers such as cash on delivery, credit or debit card transactions, net banking, e-gift
voucher and card swipe on delivery.
Name the type of plan highlighted in above case.
Q. 9 Shivani, after completing her studies took over her family’s food processing company of [3]
manufacturing pickles, jams and squashes. The business was established by her grandmother
and was doing reasonably well. However the fixed operating costs of the business was high
and the cash flow position was weak. She wanted to undertake modernization of the existing
business for which approximately 50lakhs were required. Her financial advisor informed that
the stock market was going through bullish phase.
Keeping the above considerations in mind, name the source of finance Shivani should not
choose for financing the modernization of her food processing business. Give reasons in
support of your answer.
Q. 10 Define Financial Market. State the two positive impacts of allocative function of financial [3]
market.
Q. 11 Discuss the basic features of management as a perfect Art. [3]
Q. 12 Name and explain the technique of scientific management suggested by Taylor to reward [3]
and motivate efficient workers.

(1) P.T.O.
Q. 13 Bharat and Yasar were given the task of organizing a training program for the workers. [3]
Detailed Plan was prepared by the top management and they were given the responsibility of
its implementation. It was decided that training will be given by experienced supervisors of
the company. Whereas Bharat wanted to call technical expert, which will help in improving
the skills of workers. After two sessions of training Yasar felt that continuous training is
becoming boring. He thought that a session of Motivation will break the monotony. His
superiors also liked the idea but said that this would disturb the whole program.
Briefly explain the limitations of planning discussed in above mentioned case.
Q. 14 Ace Ltd., a company manufacturing cosmetics launched a new type of fairness cream. This [4]
cream attracted large number of buyers, which increased the demand in the market. But the
company failed to mention appropriate safety warning for use. Few cases of skin allergy
were reported which spoiled the image of the company.
(i) Identify and explain the important product related decision that was not taken into
consideration by the company. Also explain its two functions.
(ii) Identify and explain the concept of marketing management which will help the
company in getting out of above crisis.
Q. 15 ‘Shining Steel Ltd.’ is a large and credit worthy company manufacturing steel for the Indian [4]
market. It now wants to cater to the Asian market and decides to invest in new hi-tech
machines. Since the investment is large, it requires long-term finance. It decides to raise
funds by issuing equity shares.
The issue of equity shares involves huge floatation cost. To meet the expenses of floatation
cost the company decides to tap the money market.
(i) Name and explain the money market instrument the company can use for the above
purpose.
(ii) Name and explain any other money market instrument which can be used by a
company.
(iii) State and explain any two money market instrument which can be used by banks.
Q. 16 Shambhu is the head of marketing department. He is a dedicated and committed employee [4]
and always ensures that discipline is maintained so that work can be completed in time. In the
beginning the marketing team liked systematic working, unity of command and role clarity
because it led to effective accomplishment of goals. But slowly the enthusiasm and
motivation level of team dropped. Shambhu realized that people lack sense of belongingness.
State the advantages and disadvantages of formal organization depicted in the above case.
Q. 17 Zenith is an employee of a company manufacturing school bags. Her employers are very [4]
happy with her performance as wastage of material is minimized and safety standards are
maintained during her tenure.
(i) State the level of management at which Zenith is working.
(ii) What will be her responsibilities if she is promoted to next level of management?
Q. 18 Red Power Limited has plan to develop 13 large and medium size power projects with the [4]
total outlay of Rs. 29 billion. In order to finance these projects company came up with the
IPO to sell out 260 million shares of Rs. 10 each. 15% of the issue is reserved for
institutional investors such as banks, mutual funds and insurance companies. Meanwhile
Amitab and Ajitab, who are existing shareholders of the company, have received an offer to
buy shares from the company.
(i) State the two financial decisions highlighted in the above para.
(ii) By quoting lines from the above paragraph state and explain the methods of floating
new issue in primary market used by Red Power Limited.
Q. 19 Differentiate between advertising and personal selling. [4]

(2) P.T.O.
Q. 20 ‘Esha’ is a well known advertising agency. Its high profile clients are spread all over the [5]
world. The functions of an advertising agency are of a more or less clerical nature, but the
more important functions are advisory and cannot be performed properly except by well-
qualified, high-priced men. For this reason the growth of an advertising agency, is necessarily
a rather slow process. Festivals are the occasions when customers introduce new schemes
and products. At this time orders for fresh ideas of advertisements are unusually high.
‘Esha’ was assisting some of its clients to carry on large advertising campaigns by granting
them extra time for the payment of their accounts while the advertising agency was paying
its own bills on the minute.
Explain factors affecting working capital requirements of ‘Esha’.
Q. 21 With the International Monetary Fund forecasting steady economic growth for the country [5]
both this year and next, and the population soaring, the market for more inexpensive
smartphones in India is attracting large companies. To capture India’s Smartphone market
Apple filed an application to sell used iphone in the country.
It is already facing some resistance for its plan to sell used iPhones. For one thing, India is
making a hard push for more companies to manufacture their goods inside the country with
Prime Minister Narendra Modi’s Make in India program.
Samsung and Indian smartphone maker Micromax, which are both more popular in India
than Apple, are also protesting the move. They argue that the plan could cripple the market
for more India made smartphones. What’s more, they claim that all the extra batteries
needed for used iPhones would be bad for the environment.
(i) Quote lines and state dimensions of business environment highlighted in the above
paragraph.
(ii) State the values referred to in the given paragraph.
Q. 22 Suhasi Ltd is running a fashion designing unit. She has identified following main functions [5]
of her unit (a) Manufacturing (b) Finance
(c) Marketing (d) Design.
Which type of organization structure would you suggest to them ? Explain any two
advantages and two limitations of this organization structure.
Q. 23 ‘Milky’ is an established brand of ‘Dynamic Ltd’. It has become a symbol of quality for the [6]
consumers and they feel proud of using products of this brand. ‘Dynamic Ltd’ is planning to
launch a packaged ‘fruit juice’ in the market. The marketing team is willing to use the glory of
their popular brand ‘Milky’ for the new product. But Marketing head Saurabh shares with his
team that ‘Milky’ which is the brand name for their milk products is not suitable for ‘fruit
juice’. It is a tough task to find a good brand name for the product which can give competition
to existing popular brands in the same segment like ‘Real’ and ‘Frooty’.
(1) State one quality which is lacking in ‘Milky’ as a brand name.
(2) Identify qualities of ‘Real’ and ‘Frooty’ as a good brand name.
(3) Quote lines and explain the advantages of branding highlighted in the above
paragraph.
Q. 24 Mony Hot Dog is a chain store making Hot dogs, located at different localities of Indore. [6]
Earlier the process of making the entire Hot dog was assigned to individual worker. And
thus the standard regarding taste, quality, shape etc. was not uniform and the outlets were
not getting good response from customers. The proprietor decided that instead of assigning
the whole job of making hot dogs such as preparation of stuffing, preparing toppings,
baking, packaging etc. to an individual, the above mentioned tasks were given to
specialized people independently. The efforts of all the employees are directed towards the
achievement of common organizational goal i.e. good taste, good quality and good service.
It was also decided that every outlet of Mony Hot Dog all over the city would distribute
first five hot dogs to poor people.

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 (i) Identify and explain the principles of management being implemented by Mony Hot
Dog.
(ii) Identify and explain the technique of management being violated by Mony Hot
Dog.
(iii) State the values being referred above.
Q. 25 SEBI is the regulatory body of financial markets in India. It has ensured a well-functioning [6]
market by taking various steps like dematerialisation of shares, shortening settlement
cycles, initiating nationwide electronic trading, nurturing the mutual fund industry and so
on. SEBI has also been instrumental in taking quick and effective steps in light of the
global meltdown and the Satyam fiasco. In October 2011, it increased the extent and
quantity of disclosures to be made by Indian corporate promoters.
By quoting lines from the above paragraph state any two functions of SEBI. Also explain
briefly the regulatory functions of SEBI.
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(4) P.T.O.