1 PRACTICE PAPER

Time: 90 minutes Max. Marks: 40

General Instructions:
(i) The Question Paper contains 3 sections.
(ii) Section A has 24 questions. Attempt any 20 questions.
(iii) Section B has 24 questions. Attempt any 20 questions.
(iv) Section C has 12 questions. Attempt any 10 questions.
(v) All questions carry equal marks.
(vi) There is NO negative marking.

SECTION–A
1.
To meet the objectives of the firm, the management of Angora Ltd. offers employment to
physically challenged persons. Identify the objective it is trying to achieve.
(a) Organisational objective (b) Personal objective
(c) Social objective (d) None of these
2.
Under which concept the companies push for the betterment of the quality of their products
in their efforts for marketing?
(a) Production concept (b) Product concept
(c) Marketing concept (d) Selling concept
3.
Planning results in decreasing _____________ .
(a) Coordination (b) Proper use of resource
(c) Future uncertainties (d) Control
4.
With the introduction of Photostat Machines in the market, the carbon paper industry was
adversely affected. Which component of environment was responsible for it?
(a) Economic (b) Political
(c) Technological (d) All the above
5. __________ removes doubts immediately.
(a) Advertisement (b) Personal Selling
(c) Sales Promotion (d) Publicity
6. In which situation the divisional structure happens to be appropriate?
(a) Where the number of major products is more than one
(b) Where the size of the organisation is quite large
(c) Both (a) and (b)
(d) Where primarily only one product is sold
7.
Which of the following statements is false about Taylor and Fayol?
(a) Fayol was a mining engineer, whereas Taylor was a mechanical engineer.

Practice Papers 1
 (b) Fayol’s principles are applicable in specialised situations, whereas Taylor’s principles have
universal application.
(c) Fayol’s principles were formed through personal experience, whereas Taylor’s principles
were formed through experimentation.
(d) Fayol’s principles are applicable at the top level of management, whereas Taylor’s principles
are applicable at the shop floor.
8.
Which of the following is the function of marketing?
(a) Promotion (b) Physical Distribution
(c) Transportation (d) All the above
9.
Span of management refers to:
(a) Number of managers
(b) Length of term for which a manager is appointed
(c) Number of subordinates under a superior
(d) Number of members in top management
10. Mr Anmol Batra is working in a well reputed company of USA. In the company he is responsible
for all the activities of the business and for its impact on society.
Identify the management level at which he is working.
(a) Top Management (b) Middle Management
(c) Operational Management (d) None of these
11. Planning is helpful in increasing _____________ .
(a) Cost (b) Loss
(c) Efficiency (d) None of these
12. It is the nature of the organising function of management to establish _____________ among all
the activities/departments/positions of the enterprise.
(a) Revolt (b) Coordination
(c) Stability (d) Dynamism
13. __________ is the central point in the marketing philosphy.
(a) Customer’s satisfaction (b) Customer’s welfare
(c) Quality of the Product (d) Quantity of Product
14. Under which philosophy of marketing, efforts are made to bring down the cost of production
to the minimum?
(a) Production concept (b) Product concept
(c) Marketing concept (d) Selling concept
15. “Coordination is not a separate function of management but it happens to be the final truth of
all functions.” In what context this observation has been made?
(a) Coordination is the essence of management
(b) Coordination is not established automatically
(c) Coordination is a continuously moving process
(d) None of these
16. Business environment is the sum total of all things external to business firms and, as such, is
aggregative in nature.
Which feature of business environment is highlighted by this statement.
(a) Specific and general forces (b) Dynamic nature
(c) Inter-relatedness (d) Totality of external forces

2 Business Studies–XII: Term–1

 17. The principles of management are those basic truths which bring out the relationship of
managerial activities between _____________
(a) Cause and effect (b) Profit and loss
(c) Income and expenditure (d) All the above
18. Which of the following is a factor of marketing mix?
(a) Product (b) Price
(c) Promotion (d) All the above
19. Authority-responsibility relationship binds individuals as superiors and subordinates and
give rise to different _____________ in an organisation.
(a) functions (b) levels
(c) objectives (d) policies
20. Plans are drawn up by the _____________ .
(a) Lower Level Management (b) Middle Level Management
(c) Both (a) and (b) (d) Top Level Management
21. With the onset of the thought of producing a thing the process of __________ starts.
(a) Buying (b) Selling
(c) Marketing (d) Producing
22. Match the points of ‘Importance of Business Environment’ in Column-I with their respective
statements in Column-II:
Column-I Column-II
(a) First mover advantage (i) Besides opportunities environment provides
numerous threats as well.
(b) Early warning signal (ii) Environment provides numerous opportunities.
(c) Planning and policy formulation. (iii) It provides the base for future course of action and
developing guidelines for decision-making.

(a) (ii), (i), (iii) (b) (iii), (i), (ii)

(c) (iii), (ii), (i) (d) (i), (ii), (iii)
23. Which of the following is not a Principle of Management given by Taylor?
(a) Science, not rule of the thumb (b) Functional foremanship
(c) Maximum not restricted output (d) Harmony, not discord
24. _____________ increases employees’ participation in the management which gives them an
identity in the organisation.
(a) Decentralisation (b) Centralisation
(c) Both the above (d) Delegation

SECTION–B
25. Malwa company’s target production is 5000 units in a year. To achieve this target the manager
has to operate on double shifts due to power failure most of the time. The manager is able to
produce 5000 units but at a higher production cost.
In the above case tell the status of the manager.
(a) Manager was effective (b) Manager was efficient
(c) Manager was effective but not efficient (d) Manager was efficient but not effective
26. The employees of Alfa Ltd. deserve fair and just remuneration. But what is just and fair is
determined by multiple factors. They include contribution of the employee, paying capacity
of the employer and also prevailing wage rate for the occupation under consideration.

Practice Papers 3
 Identify the ‘feature of principles of management’ to which the above case is related.
(a) Contingent (b) General guidelines
(c) Formed by practice and experimentation (d) Flexible
27. Two friends—Ramesh Singh and Krishan Gopal—are working as managers in different
companies. One Sunday, both of them together set off on travelling. Both of them began talking
about the activities going on in their respective companies. Mr Ramesh said that during those
days he was busy with the job of planning function of management. Also he told that he was
planning in such a way that the other managerial functions should be completed under the
framework of plans prepared by him.
Identify the feature of planning described in the above discussion.
(a) Planning focuses on achieving objectives. (b) Planning is a primary function of management.
(c) Planning is pervasive. (d) Planning is continuous.
28. Suhasini plans her winter collection in the month of June itself. She has to then ensure that
there is adequate workforce and continuously monitor whether production is proceeding
according to plans. Her marketing department also has to be briefed in time to prepare their
promotional and advertising campaigns.
Identify the characteristic of coordination to which the above case is related.
(a) Coordination is an all pervasive function (b) Coordination is a deliberate function
(c) Coordination is a continuous process (d) Coordination ensures unity of action
29. Mr Bhushan is working as a marketing manager in Swastic Colour TV Ltd. which has 20 per
cent of the current market share in the country, aims at enhancing his market share to 30 per
cent, in the next three years. He will have to develop a complete marketing plan covering
various important aspects including the plan for increasing the level of production, promotion
of the products, etc. and specify the action programmes to achieve these objectives.
Identify the function of marketing highlighted in the above case:
(a) Marketing Planning (b) Packaging and Labelling
(c) Product Designing and Development (d) Standardisation and Grading
30. Jyoti Ltd. decided to give more stress on the following: to use environmental friendly methods
of production, to provide employment opportunities to the disadvantaged section of the
society and to make available basic amenities like schools and creches to the employees.
Identify the objective of management discussed above.
(a) Organisational objective (b) Social objective
(c) Personal objective (d) None of the above
31. ‘Beauty Products Ltd’ is a natural and ethical beauty brand famous for offering organic beauty
products for men and women. The company uses plant based materials for its products and
is the No. 1 beauty brand in the country. It not only satisfies its customers but also believes in
overall protection of the planet.
Identify the marketing management philosophy being followed by ‘Beauty Products Ltd.’
(a) Product concept (b) Production concept
(c) Societal Marketing concept (d) Selling concept
32. Alliance Ltd. is engaged in manufacturing plastic buckets. The objective of the company is to
manufacture 100 buckets a day. To achieve this, the efforts of all departments are co-ordinated
and interlinked and authority responsibility relationship is established among various job
positions. There is clarity on who is to report to whom.
Name the function of management discussed above.
(a) Organising (b) Planning
(c) Staffing (d) Directing

4 Business Studies–XII: Term–1

 33. Generally, it is thought that planning is related to the planning cycle. It means that a plan is
framed, it is implemented and it is followed by another plan and so on.
The above statement is related to a feature of planning, identify it.
(a) Planning is continuous. (b) Planning is futuristic.
(c) Planning involves decision making. (d) Planning is pervasive.
34. Mr Ankit is working as a manager in ‘Nandini Designer Candles Ltd.’ For Diwali festival
his company wants to launch a unique variety of candles. Arrange the following activities of
Mr Ankit regarding this in the correct sequence:
(i) He recruits more skilled artistic workers.
(ii) He determines what activities and resources are required.
(iii) He plans a special festive collection for Diwali.
(iv) He ensures that deadlines regarding delivery of goods are met.
Choose the correct option:
(a) (i); (ii); (iv); (iii) (b) (iii); (ii); (i); (iv)
(c) (iii); (ii); (iv); (i) (d) (ii); (iii); (i); (iv)
35. ‘Maruti Vega Ltd.’ entered into the market with coloured television and have now introduced
products like audio systems, air-conditioners washing machines, etc. The company is not only
offering the products but also handling complaints and offering after-sales services.
Identify the element of marketing-mix discussed here.
(a) Place mix (b) Product mix
(c) Promotion mix (d) Price mix
36. Mr Reeshabh Bhandari is the chief manager in ‘Bhandari Pustak Parkashans’. He is fond of
continuing to present innovative ideas while planning for his business. His ideas are usually
very significant. It has been observed several times that these very ideas take the form of
concrete plans. This is the very reason that Mr Bhandari’s contribution to the growth and
prosperity of the company continues to be quite great.
Identify the ‘importance of planning’ described above.
(a) Planning provides direction.
(b) Planning reduces the risk of uncertainty.
(c) Planning reduces overlapping and wasteful activities.
(d) Planning promotes innovative ideas.
37. ‘Balaji Store’, which is located in the centre of the city is a big shop of the commodities of daily
use. The owner of this shop Mr Naresh Aggarwal, has very good relations with his customers,
suppliers and competitors. He knows it that if his customers are dissatisfied with him, its
negative impact will be there only on him and not on the other firms. Therefore, he takes full
care of their requirements. Similarly, Mr Aggarwal also knows that if there is any change in
the customs as well as in the technology, its impact will be there not only on him but also on
all the firms of his industry. No firm has control over such changes, even then Mr Aggarwal
remains on guards against them.
The above event is dependent on one of the ‘features of business environment’. Recognise this
feature.
(a) Dynamic Nature (b) Inter-relatedness
(c) Totality of External Forces (d) Specific and General Forces
38. A management expert was invited by ‘Raghav Ltd.’. He gave a lecture in the meeting of
employees on the importance of organising function of management. He said that during
this function the establishment of working relationships clarifies lines of communication
and specifies who is to report whom. This removes ambiguity in transfer of information

Practice Papers 5
 and instructions. It helps in creating a hierarchical order thereby enabling the fixation of
responsibility and specification of the extent of authority to be exercised by an individual.
Identify the point of importance of organising highlighted in the above case.
(a) Benefit of specialisation (b) Optimum utilisation of resources
(c) Clarity in working relationships (d) Development of personnel
39. Miss Komal Gupta is employed at the middle level management in ‘Rakshak Medicines Ltd.’
In order to achieve the objectives of the company, with several attempts and the opinion of
specialists, a plan was prepared. When the plan was actually implemented, Miss Gupta saw
that the actual work did not match with the plan. This matter made her very much worried,
lest the whole labour in preparing the plan should not go waste. Therefore, immediately she
reported this matter to the officer concerned.
Identify in the above event which step of the ‘planning process’ is Miss Gupta acting upon?
(a) Evaluating alternative courses (b) Selecting an alternative
(c) Implementing the plan (d) Follow-up action
40. Fabmart is a private limited company with several branches all over the country. It needs a
team of designers and crafts people. Similarly, another company Infosys Technologies which
develops software needs systems analysts and programmers.
Identify that which function of management is needed to satisfy the need of the above companies.
(a) Planning (b) Organising
(c) Staffing (d) Controlling
41. Good Living Ltd. manufactures mosquito repellent tablets. These tablets are packed in strips
of 12 tablets each. Each of these strips are packed in a cardboard box. 48 such boxes are then
placed in a big corrugated box and delivered to various retailers for sale.
State the purpose of packaging the tablets in a corrugated box.
(a) Storage (b) Identification
(c) Transportation (d) All the above
42. Once there was a meeting of top level management of Anvi and Aaru Ltd. In the meeting it was
decided that the management should not close its ears to any constructive suggestions made
by the employees. They should be rewarded for their suggestions which results in substantial
reduction in costs. They should be part of management and if any important decisions are
taken, workers should be taken into confidence.
Identify the principle of scientific management to which the above case is related.
(a) Cooperation, not individualism
(b) Science not rule of thumb
(c) Harmony, not discord
(d) Development of each and every person to his or her greatest efficiency and prosperity
43. For the following two statements choose the correct option:
Statement I: The middle level managers are responsible for the welfare and survival of the
organisation.
Statement II: Operational management plays a very important role in the organisation since
they interact with the actual workforce.
Choose the correct option from the options given below:
(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
44. Some friends joined together and set up a multi-product company. Their company makes
four different products. Three products of the company have been successfully launched in
market. But the company has not succeeded to launch the fourth product in market.

6 Business Studies–XII: Term–1

 What sort of organisational structure, in your view, might have been adopted by the
company?
(a) Divisional Organisation Structure (b) Functional Organisation Structure
(c) Both (a) and (b) (d) None of these
45. The marketing manager of Green Gold Pvt. Ltd. Mr Roy while taking decision consider at
the top-what product will be produced, with what features and at what price shall it be sold,
or where shall it be made available for sale will depend on what do the customers want. If the
customers want features like double door in a refrigerator or a separate provision for water
cooler in it, the organisation would produce a refrigerator with these features, would price it
at a level which the customers are willing to pay and so on.
Identify the marketing philosophy followed by Mr Roy.
(a) The Marketing Concept (b) The Selling Concept
(c) The Product Concept (d) The Production Concept

46. Rakhi Dua is employed at the middle level management of ‘Punjab Food Suppliers’. Working
in her department she noticed that they are asked to implement the plans prepared by the
top management without making any change. Many a time, even though wishing to do so, she
cannot make any change in them. As a result of it, the initiative and creativity of the managers
at the middle level management, gets killed. Not only this, several times, even opportunities
of advantage slip out of hand. Rakhi is very unhappy with this state of affairs of the company,
and she is thinking of shifting to some other company at the earliest.
Identify the ‘limitation of planning’ in the above event.
(a) Planning is a time consuming process.
(b) Planning may not work in a dynamic environment.
(c) Planning reduces creativity.
(d) Planning involves huge costs.
47. After obtaining the Post Graduate degree in the subject of ‘Business Environment’, Mr Saksham
Miglani was appointed as the Manager in a company. He noticed that the market changes
taking place very fast were having a negative impact on the company. Taking advantage of
his academic ability, he made a thorough study of the business environment. Based on his
study, he prepared a formula to cope with the rapid changes taking place. Within no time, the
negative impact on the company of the changes taking place disappeared. Now, the company
is running successfully.
Identify the point of importance of the business environment in the above event.
(a) It helps the firm in identifying the threats and early warning signals.

(b) It enables the firm in identifying opportunities and getting the first mover advantage.
(c) It helps in tapping useful resources.
(d) It helps in coping with rapid changes.
48. Assertion (A): Coordination is not a one time function but a continuous process.
Reason (R): Coordination begins at the directing stage and continues till controlling.
(a) Both (A) and (R) are true, and R is the correct explanation of A.
(b) Both (A) and (R) are true, and R is not the correct explanation of A.
(c) (A) is true but (R) is false.
(d) (A) is false but (R) is true.

Practice Papers 7
 SECTION–C
Read the text given below and answer the questions (49-54) based on it.

The Marketing Manager, Mr Kasim Ahmed of ‘Singh and Singh Pvt. Ltd’ was not satisfied
with the Marketing philosophy implemented in his company. He examined several marketing
philosophies, one after the other.

First of all, he prepared a large-scale production plan. He believed that several economies would
be obtained from the large-scale production. It would reduce the cost per unit and by fixing
a balanced price he would be able to attract customers to his side. But such a thing did not
happen.
Afterwards, he changed his thinking. His new thinking was that he would be able to attract
customers when the emphasis of the company shifted from quantity of production to quality of
products. But again, it did not serve the purpose.
Afterwards, Mr Ahmed again changed his thinking. Now the basis of his thinking was that ‘Goods
are not bought but they have to be sold’. In order to give a practical shape to this thinking took
the help of aggressive selling techniques, but once again it did not serve the purpose.
Finally, he focused his attention on ‘Consumer satisfaction and social welfare’. This Marketing
Philosophy gave him full success.
49. Identify the Marketing Philosophy under which the emphasis is laid on large-scale production:
(a) Production philosophy (b) Product philosophy
(c) Selling philosophy (d) Social marketing philosophy
50. Identify the Marketing Philosophy out of the following which contains the essence of Quality
Production:
(a) Production philosophy (b) Product philosophy
(c) Selling philosophy (d) Societal marketing philosophy
51. Identify the Marketing Philosophy in which the use of Aggressive Selling Techniques are
used:
(a) Production philosophy (b) Product philosophy
(c) Selling philosophy (d) Societal marketing philosophy
52. Last of all, the Marketing Manager focused his attention on ‘Consumer satisfaction and social
welfare’ and he succeeded. Identify the Marketing Philosophy used here:
(a) Marketing philosophy (b) Selling philosophy
(c) Societal Marketing philosophy (d) None of the above
53. Identify the Marketing Philosophy not tested by Mr Ahmed:
(a) Production philosophy (b) Marketing philosophy
(c) Selling philosophy (d) None of the above
54. Statement I: Production philosophy focused on quality of products.
Statement II: Marketing philosophy focused on consumer satisfaction.
Both the above statements are:
(a) True
(b) False
(c) Statement (I) is true and statement (II) is false
(d) Statement (I) is false and statement (II) is true.

8 Business Studies–XII: Term–1

 55. A company wants to differentiate between its efficient and inefficient workers. For the same, it
is determined that standard output per worker per day is 8 units and those who made standard
or more than standard will get ™50 per unit and those below will get ™40 per unit. Now an
efficient worker making 9 units will get 9 × 50 = ™450 per day whereas a worker who makes
7 units will get 7 × 40 = ™280 per day.
Identify the technique of scientific management highlighted in the above case.
(a) Differential piece wage system (b) Method study
(c) Time study (d) Fatigue study
56. Miss Aarika Goyal is working as the C.E.O. in a company. She lays a special emphasis on the fact
that the company continues to always have sweet relations with its customers. Besides, to have
a close eye on the business environment she considers as the secret of any business. Recently,
she noticed that the government was preparing a policy to invite the foreign companies. The
government planned to give them several concessions. Miss Goyal saw through the government
intention and started preparing herself for it.
Identify the point of ‘importance of business environment’ from the incident stated above?
(a) It helps the firm in identifying the threats and early warning signals.

(b) It enables the firm in identifying opportunities and getting the first mover advantage.
(c) It helps in tapping useful resources.
(d) It helps in coping with rapid changes.
57. Radha Rani is the C.E.O. of ‘Radhika Sales Pvt. Ltd.’ Besides other managerial activities, she
is an expert in planning. While planning for her company, she noticed that at first several
options are gathered, then their evaluation is done and finally the most suitable option is
selected. Once he was confronted with such a problem as had only one option available for its
solution. To select this very option was her compulsion. Now, for the first time he realised that
the necessity of planning is there only when several options are available.
Identify the feature of planning in the event stated above.
(a) Planning is continuous. (b) Planning is futuristic.
(c) Planning involves decision making. (d) Planning is pervasive.
58. The management of Bharat Udyog Pvt. Ltd. and labour union have entered into an agreement
whereby workers have agreed to put in extra hours without any additional payment to revive
the company out of loss. In return the management has promised to increase wages of the
workers when this mission is accomplished.
Identify the principle of management highlighted in this case.
(a) Discipline (b) Remuneration of employees
(c) Scalar chain (d) Authority and responsibility
59. In the recent few years, the ‘Online business’ has become very much in vogue. Now, sitting at
home, we can get information about the sellers of any product and other related information
through the medium of internet. Through the internet only the process of ordering goods and
making payment is completed. The desired good reach home within the minimum possible
time. This new business system has very deeply affected the current business system. The
people doing business according to the traditional system are very much worried, and they
have started seeing their future as full of darkness.
Which particular dimension of the business environment is indicated in the event referred to
above?
(a) Economic Environment (b) Social Environment
(c) Technological Environment (d) Political Environment

Practice Papers 9
 60. Mr Ram is the C.E.O. in ‘Ram Lakhan General Pvt. Ltd.’ He is the head of the team making
plans for the company also. He gave a number of suggestions to the team out of which the two
main suggestions were: First, Mr Ram said that they had to face a lot of problem in getting the
main raw material used in the company, but in the next year it was possible that they could
get it easily. Secondly, in the second coming year the rate of bank interest was most likely to
increase, which would affect the company’s costs. He laid emphasis on this matter that both of
his remarks should be kept in view while preparing the plans.
Clarify to which stage of the planning process the above event is related.
(a) Setting objectives (b) Developing premises
(c) Identifying alternative courses of action (d) Evaluating alternative courses

Answers of Practice Paper-01

1. (c) 2. (b) 3. (c) 4. (c) 5. (b) 6. (c) 7. (b) 8. (d) 9. (c) 10. (a)
11. (c) 12. (b) 13. (a) 14. (a) 15. (a) 16. (d) 17. (a) 18. (d) 19. (b) 20. (d)
21. (c) 22. (a) 23. (b) 24. (a) 25. (c) 26. (a) 27. (b) 28. (c) 29. (a) 30. (b)
31. (c) 32. (a) 33. (a) 34. (b) 35. (b) 36. (d) 37. (d) 38. (c) 39. (d) 40. (c)
41. (d) 42. (a) 43. (b) 44. (a) 45. (a) 46. (c) 47. (d) 48. (a) 49. (a) 50. (b)
51. (c) 52. (c) 53. (b) 54. (d) 55. (a) 56. (a) 57. (c) 58. (a) 59. (c) 60. (b)
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10 Business Studies–XII: Term–1