ASSIGNMENTS CLASS 12 BUSINESS STUDIES

TEST OF PLANNING (NEW PATTERN)

Time: 40 minutes MM: 20

SECTION A : OBJECTIVE

1. An auto company C Ltd. is facing a problem of declining market share due to increased
competition from other new and existing players in the market. Its competitors are introducing
lower priced models for mass consumers who are price sensitive. C Ltd. realized that it needs
to take steps immediately to improve its market standing in the future. It decided to increase the
sales by 10% and gave direction to all direction to all departments at all levels what they are
expected to do to achieve the objective. The managers also made certain assumptions about
the future, and forecasting was made about the demand for new products, prices of machinery
and equipment needed etc. For quality conscious consumers, C Limited plans to introduce new
models with added features and new technological advancements. The company has formed a
team with representatives from all the levels of management. This team will brainstorm and will
determine the steps that will be adopted by the organisation for implementing the above
strategy. However it is very difficult to assess future trends in the environment if economic
policies are modified or political conditions in the country are not stable. Intense competition in
the market can also upset financial plans, then sales targets may have to be revised.
(i) Identify the function of management highlighted in the given case:
(a) Planning (b) Organising (c) Directing (d) Controlling
(ii) It decided to increase the sales by 10% and gave direction to all direction to all
departments at all levels what they are expected to do to achieve the objective. The
managers also made certain assumptions about the future, and forecasting was made about
the demand for new products, prices of machinery and equipment needed etc.

(a) Setting Objectives (c) Developing Premises

(b) Both (a) and (b) (d) Follow up action
(iii) “….However it is very difficult to assess future trends in the environment if economic
policies are modified or political conditions in the country are not stable. Intense
competition in the market can also upset financial plans, then sales targets may have to be
revised.” Identify the limitation of the function of management identified as above:

(a) Planning leads to rigidity

(b) Planning may not work in dynamic environment
(c) Planning does not guarantee success. (d) Time Consuming
(iv) Identify the feature(s) of the function of management as identified above:

(a) Planning is a mental exercise (c) Planning is futuristic

(b) Planning is pervasive (d) All of these

2. Arrange the process in sequence:

a. Evaluation of alternate courses of action c. Selection of an alternate course of action

b. Developing premises d. Setting objectives

i) abcd ii) cabd iii)dbac iv) dabc

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3. Mega Ltd. holds an Annual Management Programme every year in the month of March in which
the top managerial personnel formulate plans for the next year by analysing and predicting the
future to meet future events effectively. They make certain assumptions about the future which are
considered to be the bad material upon which the plans are to be drawn.
As they are responsible for providing direction to the organisation, facts are thoroughly checked
using scientific calculations. Detailed plans are prepared after discussion with professional experts.
Preliminary investigations are also undertaken to find out the viability of the plan. Since it is an
intellectual activity requiring intelligent imagination and sound judgement so it is mainly done by the
top management. Usually rest of the members just implement the plans. Middle level managers are
neither allowed to deviate from the plans nor are they permitted to act on their own. The top
management ensures that the expenses incurred in formulating the plans justify the benefits
derived from them. The management of the company is able to anticipate changes/uncertainties
and develop managerial responses to them.
i) They make certain assumptions about the future which are considered to be the bad
material upon which the plans are to be drawn. Identify the step of the planning process
highlighted above.

a. Setting objectives c. Developing premises

b. Implementing the plan d. Follow up action

ii) Detailed plans are prepared after discussion with professional experts. Preliminary
investigations are also undertaken to find out the viability of the plan. Middle level managers
are neither allowed to deviate from the plans nor are they permitted to act on their own.
Identify the limitation of the planning highlighted above:

a. Planning leads to rigidity c. Planning reduces creativity

b. Planning is a time-consuming process d. Planning involves huge costs.

iii) The top managerial personnel formulate plans for the next year by analysing and
predicting the future to meet future events effectively. Identify the feature.

a. Planning focuses on achieving objectives c. Planning is futuristic

b. Planning is pervasive d. Planning is a mental exercise

iv) The management of the company is able to anticipate changes/uncertainties and develop
managerial responses to them. Identify the importance:
a. Planning reduces risks of uncertainty c. Promotes innovative ideas
b. Planning provides directions d. Facilitates decision making

4. Planning needs to be done in all levels means

a. Planning is continuous c. Planning is futuristic
b. Planning is pervasive d. None of the above

5. Read the following text and answer the following questions on the basis of the same:
Simplex limited had been taken over by Mundhra Group immediately following India’s
independence. Since then it enjoys a rich record of industry presence and experience. In 2005, with
the aim to accelerate growth the company had gone through several rounds of meetings and
discussions before launching ERP system to attract large projects. The management had done
effective forecast and critical thinking regarding allocation resources to reduce wastage. For this
purpose the company had laid down multiple courses of action to meet the challenge of adverse
situations. In 2008, the company suffered loss in many projects due to the great recession despite
taking many cost cutting measures. The management had taken utmost care regarding the
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possible outcome and timely review of the plans to achieve the set target during that hard time. In
2010 the system implemented successfully which subsequently helped the company to execute
numerous projects with precision and timeliness.

(i) “In 2005, with the aim to accelerate growth the company had gone through several
rounds of Meetings and discussions.” What is the objective mentioned here according to
the process stated here?
A. Developing Premises B. Growth & development
C. Launching IT enabled system D. Cost cutting.

(ii) “In 2008, the company suffered loss in many projects due to the great recession despite
taking many cost cutting measures.” Which limitation of the management process is
indicated here?
A. It fails to cope with sudden changes B. It involves huge cost
C. It requires critical thinking. D. Need to construct multiple action plans

(iii) State whether the given statement is True or False:

“The management had done effective forecast and critical thinking regarding allocation of
resources to reduce wastage.”

(iv) “The management had taken utmost care regarding the possible outcome and timely
review of the Plans to achieve the set target during that hard time.” Which is the last step of
the Process mentioned here?

A. Implementation of plan B. Timely execution of projects

C. Follow up D. To prepare alternative course of action

6. Statement A: Planning reduces overlapping and wasteful activities.

Statement B : Planning cannot eliminate changes or events but can be anticipated to
some extent:
Read the above two statements and tick the appropriate option:
(i) Both the statements are correct and reason is the correct explanation for the assertion.
(ii) Both the statements are correct but reason is not the correct explanation for the assertion.
(iii) Both the statements are incorrect in reference to planning
(iv) Statement A is right but Statement B is incorrect
a. Option (i) b. Option (ii) c. Option (iii) d. Option (iv)

SUBJECTIVE

7. Failing to planning is planning to fail. Explain (5)

MARKING SCHEME

(i) (a)
(ii) (b)
(iii) (b)
(iv) (d)

2. (iii) dbac
3. i) c
ii) c…..(middle level managers are not….)
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iii) c…(the top level managerial……)
iv) a. (The management of the company is…..)
4. (b)
5. (i) B (ii) (A). (iii) True (iv) B
6. (ii) Both the statements are correct but reason is not the correct explanation.
7. Failing to plan is planning to fail
Students need to mention the importances of ‘Planning’.
PRINCIPLES OF MANAGEMENT
Time: 45 minutes MM: 30

PART A: OBJECTIVE
1. Principles of management cannot be
(a) defined (c) applied anywhere
(b) tested in Laboratories (d) part of Business

2. Hindustan Lever Limited’ decided to divest in non-core business of chemicals and

seeds.’ Which point of importance of principles of management is highlighted here?
(a) Fulfilling social responsibility (b) Optimum utilization of resources
(c) Meeting changing environment requirements (d) Scientific decisions

3.Principles enable a better understanding of the relationship between human and material
resources in accomplishing organisational purposes. Which of the following characteristic
of principles of management is reflected in the above statement?
(a) Principles are flexible in nature (b) Principles are contingent
(c) Principles are behaviourial (d) General guidelines

4. ’The principles of management are dependent on the prevailing situation at particular

point of time.’ Identify the nature of principles of management
(a) Contingent (c) Mainly behavioural
(b) Flexible (d) Cause and effect relationship

5. Which of the following option is false? Principles of management are

(a) Applicable only in large firms (b) Formed by practice and experience of managers
(c) Flexible (d) Contingent

6. Match the concepts with their interpretation:

Techniques Statements
1. Principles of management a. Flexible
2. Principles of science b. Moral connotation
3. Values c. A way to carry a particular task
4. Technique d. Rigid

(a) 1-A, 2-D, 3-C, 4-B (b) 1-A, 2-D, 3-B, 4-C
(c) 1-B, 2-D, 3-A, 4-C (d) 1-B, 2-D, 3-B, 4-A

7. ’Keshav keeps machines, materials, tools, etc., ready for operations by concerned
workers’. Whose work is described by this sentence under functional foremanship?
(a) Instruction Card Clerk. (b) Repair Boss (c) Gang Boss (d) Route Clerk

8. Taylor devised the concept of assembly line by using _____________

(a) Fatigue Study. (b) Motion Study (c) Time Study (d) Method Study

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9. ‘If this principle is violated, authority is undermined, discipline in jeopardy, order
disturbed and stability threatened.’ Identify the principle of management

(a) Discipline (b) Unity of Direction (c) Order (d) Unity of Command

10. Which of the following statement is not true about Taylor and Fayol?

(a) Taylor worked at shop floor area whereas Fayol worked top level of management

(b) Taylor’s contribution was applicable to specialized situations whereas Fayol’s

contribution was universally applicable.

(c) Taylor’s contribution was based on personal experiences whereas Fayol’s contribution
was based on observations and experimentations.

(d) Taylor’s contribution was towards increasing productivity whereas Fayol’s contribution
was on improving overall administration

11.Which of the following statement correctly describe the meaning of principle of order?

1. Command by a superior to his subordinates

2. Materials, tools and apparatus should be kept at their respective place after use
3. Employees should be available at their respective workstations
Correct answer would be:
(a) Only1 (b) 2&3 (c) 1&3 (d) 1,2&3

12. Violation of principle of ‘Esprit de Corps’ leads to

(a) minimize labour turnover (c) loss of coordination

(b) minimize sales turnover (d) disorder

13. Saksham was appointed as Northern Regional Manager by Bedi Pharmaceuticals and
Annidhya was appointed as Western Regional Manager. Both have similar responsibilities
but Saksham enjoys more perks and salaries that Annidhya. Identify the principle violated.

(a) Principle of Espirit De Corps

(b) Principle of Equity
(c) Principle of Remuneration
(d) Principle of subordination of individual interest to general interest

14. Match the statements with their respective principles:

Techniques Statements

1. Initiative A. To ensure fairness to all employees through kindness

and justice
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2. Remuneration B. To implement good suggestion system
3. Equity C. Clear and fair agreements
4. Discipline D. Fair wages for reasonable standard of living

Find the correct option:

(a) 1-B, 2-D, 3-C, 4-A (b) 1-B, 2-A, 3-D, 4-C
(c) 1-B, 2-D, 3-A, 4-C (d) 1-B, 2-A, 3-D, 4-C

15. Read the following text and answer question numbers 1-4 on the basis of the same:

Kashish Kapoor, a young entrepreneur has set up a private limited company to manufacture
different kinds of eco-friendly packaging materials. He has done his MBA from Japan and served
in a Japanese company for three years. He proposed to adapt to logical approach to his business
rather than hit and trial method as he knows that this can result in tremendous saving of human
energy as well as wastage of time and materials. He got highly influenced with the Japanese work
culture, so he planned to adopt paternalistic style of management in his factory as well. His father
appreciated the Japanese culture but advised him to modify the principles as per the demand of
the situation.

For greater productivity, he believed in separation of planning and execution functions and decided
to extend this concept to the shop floor.

He believed that an organization cannot succeed without winning the confidence of his employees
and for that it is very important that management and workers both honour their commitments. He
shared his vision with his managers. His team was very excited to have new ideas and an
enthusiastic entrepreneur.

(i)“He proposed to adapt to logical approach to his business rather than hit and trial
method as he knows that this can result in tremendous saving of human energy as well as
wastage of time and materials." Which importance of principle of management is
highlighted in this sentence?

(a) Scientific decision

(b) Optimum utilization of resources and effective administration
(c) Providing managers with useful insight into reality
(d) Fulfilling social responsibility
(ii) “He got highly influenced with the Japanese work culture, so he planned to adopt
paternalistic style of management in his factory as well." Which scientific principle of
management is Kashish Kapoor talking about?
(a) Science, not rule of thumb (b) Harmony, not discord
(c) Cooperation not individualism
(d) Development off each and every person to his or her greatest efficiency.

(iii) “His father appreciated the Japanese culture but advised him to modify the principles
as per the demand of the situation." Identify the nature of principles of management.
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(a) General guidelines (b) Mainly behavioural (c) Flexible (d) Contingent

(iv) “For greater productivity, he believed in separation of planning and execution functions
and decided to extend this concept to the shop floor." Which technique of scientific
management has been referred to in above lines?

(a) Simplification (b) Differential Piece Wage system

(c) Functional Foremanship (d) Standardisation

(v) “He believed that on organization cannot succeed without winning the confidence of his
employees and for that it is very important that management and workers both honour their
commitments." Identify Fayol's principle of management highlighted in above lines.

(a) Discipline (b) Equity (c) Espirit de Corps. (d) Initiative

16. Employees’ turnover refers to the turnover achieved by employees. (True/False)

17. Management principles are derived after observations and experimentations when certain
conditions are present. (True/False)
18. Fayol’s principle of “subordination of individual interest to general interest relates to Taylor’s
technique of Mental Revolution”. (True/False)
19. Assertion (A): According to Taylor, there should be an almost equal division of work and
responsibility between workers and management.
Reason (R): The principle of ‘harmony not discord’ says that there should be complete
harmony between management and workers.
Find the correct option:

(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

20. Assertion (A): Even a small production activity like loading pigs of iron into boxes can
be scientifically planned and managed.
Reason (R): Taylor believed that there was only one best method to maximise efficiency.
Find the correct option:

(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

PART B: SUBJECTIVE

21. A production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility
for ordering raw material for the firm. While deciding on the supplier for the financial year 2020-21,
he gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier who
was willing to lower the rates for the order.Which principle of management was violated by Mr.
Rathore? Identify and explain the same. (3)
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22. Veronika and Laxmi completed their Masters in Business Economics from Delhi School of
Economics. Laxmi belongs to a rural area in Sikkim whereas Veronika belongs to Delhi. They got
the campus recruitment in ‘India Infoline Limited’ on the post of ‘Online Development Manager’.
Ignoring the differences between the two, company decided to give same salary package of Rs
6,00,000 per annum. Name and explain the principle of management being followed in the
above case. (3)

ANSWER KEY

1 (b)
2 (c)
3 (c)
4 (a)
5 (b)
6 (b)
7 (c)
8 (d)
9 (d)
10 (c)
11 (b) 2 & 3
12 (c) loss of coordination
13. (c)
14. (c)
15 (i) b
(ii) b
(iii) c
(iv) c
(v) a
16. False
17. False
18. True
19. (b)
20. (a)

SUBJECTIVE

21. Subordination of individual interest to general interest.

22. Principle of Equity.

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BUSINESS ENVIRONMENT
OBJECTIVE QUESTIONS MM: 20

1. Trilochan Singh and Co. is a big business unit. Mr. Singh has already defined the objectives
and policies of the business very clearly in order to run his business successfully. He has
an intimate relationship with the buyers, sellers and competitors etc., and in case of any
difference of opinion, he takes the situation under his own control at the earliest possible.
He fully knows about the business environment and its importance. He also knows that the
business environment is not the only factor related to business, but it includes the factors
like economic, social, political, technological and several other factors which are present
outside the business. That is why the advantage of business environment can be taken only
when a sharp eye is kept on all its factors.
Identify the feature of business environment stated in the above event.
(a) Dynamic Nature (b) Inter-relatedness
(c) Totality of External Forces (d) Specific and General Forces

2. ’Riya Health Care Limited’, established with the objective of taking care of the people’s health,
was a new company. This was the first company of this type established in its field. There being no
competition in the market was something good for the company. But the company’s business was
about to pick up, when several competing companies got established in that field. Consequently,
the comfortable position of the company came to an end. Hardly two years had gone by since the
company was established, when there occurred a big change in the priorities of the customers.
Now they got tempted towards the local health promoting products instead of the company’s
products. In this way, the company had to face great difficulties to keep itself established in the
market.
Which feature of business environment does the above event acquaint us with?
(a) Dynamic Nature (b) Inter-relatedness
(c) Totality of External Forces (d) Specific and General Forces

3. After completing their education, Parul and Shalu opened a Mobile Shop by the name of ‘Aosv
Mobile Shoppee’. They started their business with the latest models of mobile phones of four
companies: Apple (A), Oppo (O), Samsung (S) and Vivo (V). On account of their good dealings
and excellent products, within a few days, there used to be a big rush at their shop. As there was a
big sale—they built up a big stock of the mobile phones of all the four companies. Within a few
days all the four companies launched the new models of mobiles in the market. None of these
companies took the old stock back and they had to suffer a heavy loss. They had never expected
that such a thing could also happen. They were going on by taking the permanent speed of their
sale for granted. Now they realised how important it was to be aware of what was going around.
What particular ‘feature of business environment’ does the above event indicate?
(a) Relativity (b) Uncertainty (c) Complexity (d) Inter-relatedness

4. ’Your Departmental Store’ is a big shop of the articles of daily use. It is situated in the centre of
the city, and is running successfully for the last many years. On getting influenced by the success
of this store, five more stores got established around it. As a result, the competition increased. On
the other hand, because of the very good economic condition of the country, the income of the
people got increased. Now, there was a change in their demand, and they started asking for the
newer and newer products. Meanwhile, there were elections in the country and there was a
change of government at the centre. The new government has adopted a tough attitude towards
business. On account of all these reasons, it has become difficult to run the store successfully.
Which particular feature of business environment in the above event has been described?
(a) Relativity (b) Uncertainty (c) Complexity (d) Inter-relatedness
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5. ’Sarika Motors Limited’ is a famous vehicle manufacturing company. The Research and
Development Department of the company is very strong. The manager of the Department, Mr
Gopal Rai, keeps a sharp eye on the business environment. On the basis of the data given by the
government he has concluded that the pollution level in the country is rising very fast and that the
vehicles running on petrol and diesel contribute a lot into it. Keeping this fact in mind Mr Rai
developed such an engine as ran on air pressure. The company used this engine, first of all, in
cars, which proved to be completely successful. The cars were expensive, but the company got
full support from the market. From the government also, several concessions in the taxes, power
rate, etc. were available. The company earned a huge profit. Afterwards, several other companies
also followed this technique, but no other company got as much fame as was got by ‘Sarika
Motors’.
Identify the point of ‘importance of business environment’ in the event described 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.

6. 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.

7. Anvi and Aaru are twin sisters. Both of them have completed their education, and now they
want to establish a business unit. The two sisters divided the whole work into two parts: One, the
different particular resources needed; two, the expectation of the society from them. The first job
came to Anvi’s and the second, to Aaru’s share. Anvi prepared a list which showed what different
resources they would need and from where they would be made available. This list mainly
included finance, machinery, raw material, power, water, labour, etc. Similarly, Aaru’s list showed
the provision of better products and services to the customers and payment of taxes to the
government and sufficient return to the investors will have to be made. Both of them realised that
only the environment will provide them with all the necessary resources and the platform for the
sale of their products. Keeping this fact in view, they prepared a balanced policy.
Identify the point of ‘importance of business environment’ on the basis of the event
described 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.

8. In the end of year 2019, there started a Pandemic by the name of Corona spreading in the
world. In the year 2020, it took the whole world in its fold. In India, also its effect was seen. Due to
the lockdown, continuing for months together, India’s economy got ruined. For the improvement of
economy, the government took a number of steps. One of the major steps was to reduce the
interest rate heavily on long-term loan. Due to the heavy reduction in the interest rate, some

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people started constructing houses and some of them started buying the vehicles like cars, etc. In
both these sectors one noticed a great increase in demand. As a result, the economy, which was
getting ruined, got some help to come up.
What do you learn from the above event about the important point of general business
environment related to the reduction in interest rate?
(a) Economic Environment (b) Social Environment
(c) Technological Environment (d) Political Environment

9. On account of continuing Corona virus, for months together there remained the lockdown.
During this period, the people remained confined to their houses. The articles of food and drink
which used to be ordered from the market began to be prepared at home. From the ‘YouTube’ and
‘Google’, the home makers learnt to prepare everything at home, which earlier used to be
available at the sweet-maker’s shop and restaurants. The people realised that every food item
prepared at home was more tasty and nutritious than that of the market. Now, the people have
become used to it. Even when the lockdown was lifted the people preferred the home-made food
and sweets to have. It so appears that now the consumption habits of people have changed. This
habit of the people has affected the market.
To which particular dimension of the business environment is the above stated incident
related?
(a) Economic Environment (b) Social Environment
(c) Technological Environment (d) Political Environment

10. 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

11. The present government wants to give the skilled youth full opportunity to come forward. The
government’s intention is that the youth should display their skill by coming forward. In order to
make their skill fully realise, the government launched the ‘Start up India Scheme’. Mainly, in this
scheme it is declared that the person who brings something new related to business (as new
process, new article, new service, etc.) will be helped by the government in several ways. The
youngmen understood this scheme and took full advantage from it. Nowadays they have got
employment for themselves as well as are providing employment to several other unemployed
young men.
Identify the factor of business environment to which the above stated event is related.
(a) Economic Environment (b) Social Environment
(c) Technological Environment (d) Political Environment

12. ’Neerja Milk Producer Pvt. Ltd.’ was established to produce tasty and nutritious dry milk for
small children. The company gave its product the brand name ‘Mother’s Love’. The company
publicised its product very much and produced the goods of supreme quality. Being impressed by
the quality of the product, the people purchased the ‘Mother’s Love’ brand in no time. Here one
particular thing was that the company had lain its full emphasis on the packaging of their product.

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On the milk box were written the ‘instructions of use’. Besides, it was also written that ‘mother’s
milk is the best’. To write this was the legal requirement. The company was very much successful
and within a days, it became the leader in its industry.
Which ‘dimension of the business environment’ is perceived from the event quoted above?
(a) Technological Environment (b) Political Environment
(c) Legal Environment (d) Economic Environment

13. 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

14. Which of the following does not characterise the business environment?
(a) Uncertainty (b) Employees (c) Relativity (d) Complexity

15.In the Union Budget 2021, Finance Minister of India declared number of schemes especially for
the Health Care Sector. An amount of Rs 2,23,846 crore budget was proposed for health care
sector amidst the Covid-19 pandemic for the financial year 2021-22. It was around 137% of the
budgeted amount proposed in the previous financial year. It had a substantial impact on health
care industry and their stock values indexed at BSE and NIFTY.

Which type of business environment highlighted in the above case affecting stock price of
health industries?

(a) Political (b) Economic (c) Social (d) Technological Environment

16. 11th December 2008 is the date to be remembered as a milestone in Tele-communication

Sector of our country and among all the internet users. This date witnessed the introduction of 3G
(Third Generation) of Wireless Mobile in India. It was getting quite popular among users during
that period. It was initially introduced by MTNL followed by BSNL in the country. Later, spectrum
allocations were made and private players like Bharti Airtel, Vodafone, and Idea Cellular entered in
to the 3G arena. In the year 2012, 4G got introduced in the Indian market by Airtel to become the
first company to provide 4G services to its customers. Airtel succeeded to understand the possible
future business opportunities, formulate proper plans and policies accordingly.

Which importance of business environment is referred in the above case?

(a) Help to understand internal Environment

(b) Helps in identifying opportunities
(c) Enables the firm to identify threats
(d) Helpful in making plans and formulating policy

17. Match the columns:

COLUMN A COLUMN B
1. Facebook, Twitter & Instagram (a) Increase in cost of production
2. Increase in the value of rupee (b) Social Environment
3. Increase in tax by government (c) Technological Environment
4. More health conscious environment (d) Economic environment

(i) 1-(c); 2- (d); 3 - (a); 4- (b) (iii) 1-(b); 2-(a); 3- (d); 4 - (c)
(ii) 1-(b); 2- (a); 3- (d); 4- (c) (iv) 1- (a); 2- (c); 3- (d); 4- (b)
12 DR (MRS) RAMA RAGHAVAN 9910522680




























ASSIGNMENTS CLASS 12 BUSINESS STUDIES

18. Read the statements and mark the appropriate option:

Statement 1: Political environment involves several forces such as political stability, harmony and
vision of government towards business.
Statement 2: Political stability and clear majority are helpful in building the confidence of the
industrial sectors and vice versa.
(a) Both Statement 1 and Statement 2 are true and Statement 2 is the correct explanation of 1.
(b) Both the statements are true but Statement 2 is not the correct explanation of 1
(c) Statement 1 is true but 2 is false (d) Statement 1 is false but 2 is true

Statement 1: Technological environment helps some of the business to earn more by exploring
opportunities and creating threats to other enterprises.
Statement 2: Technological environment involves new methodologies, processes, techniques,
equipment etc for the purpose of innovation.
(a) Both Statement 1 and Statement 2 are true and Statement 2 is the correct explanation of 1.
(b) Both the statements are true but Statement 2 is not the correct explanation of 1.
(c) Statement 1 is true but 2 is false (d) Statement 1 is false but 2 is true

19. Identify the component of business environment:




a. Social Environment b. Legal Environment c. Political d. Technologica

13 DR (MRS) RAMA RAGHAVAN 9910522680

 ASSIGNMENTS CLASS 12 BUSINESS STUDIES

14 DR (MRS) RAMA RAGHAVAN 9910522680