KENDRIYA VIDYALAYA SANGATHAN, CHENNAI REGION

SAMPLE PAPER FOR PRACTICE TEST (TERM-1) 2021-2022

CLASS XII SUBJECT: BUSINESS STUDIES (054)

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.
(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 philosophy.
(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

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 gives 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.
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

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 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 substantia l 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.
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.

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.

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 Rs.50 per unit and those below will get ™40 per unit. Now an efficient worker making 9
units will get 9 × 50 =Rs.450 per day whereas a worker who makes 7 units will get 7 × 40 = Rs.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 times 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. This type of orgnaisational structure facilitates expansion and growth as new product lines can be added
without interrupting the existing operation by mearly adding another product head and staff for the new
product line.
(a) Functional structure (b) Matrix structure
(c) Divisional structure (d) None of the above

60. A Diwali mela was organized in a residential colony in Delhi. After work was assigned to each member
of the welfare association. it was told that from whom he / she has to take orders and to whom he/ she
will be accountable. Identify the step in Organising process being described above.

(a) Identification and division of work (b) Departmentalization

(c) Assignment of duties (d) Establishing Authority relationship

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