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Class 12 - Business Studies

Sample Paper 01

Maximum Marks: 40
Time Allowed: 90 minutes

General Instructions:

1. The Question Paper contains 3 sections.

2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.

Section A
1. Management has to adapt itself according to the changing environment. Which characteristic of
management is highlighted in the above statement?
a. Goal-oriented
b. Continuous process
c. Dynamic function
d. Group activity
2. Harmony, Not Discord principle is concerned with:
a. Investigation of Task
b. Scientific inquiry
c. Management should share the profit with workers
d. Observation and Analsysis
3. India is good example for ________ economy.
a. communist
b. capitalist
c. mixed
d. socialist
4. While doing work, an idea struck Rajender, which will not only reduce the time of work but would also
reduce the cost but he was neither allowed to deviate from plans nor permitted to act on his own.
Choose the limitation of planning described in the above para.
a. Planing reduces creativity
b. Planning involves huge cost
c. Planning does not guarantee success
d. Planning leads to rigidity
5. Where lies the need of organisation?
a. In non-business organisation
b. In business organisation
c. In both In business organisation and In non-business organisation
d. No where
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study material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams.
6. It is a merit of Advertising:
i. enhancing customer satisfaction and confidence
ii. is less flexible
iii. is the paid form
iv. is by an identified sponsor
a. iii and iv
b. only i
c. only iv
d. ii and iii
7. Which is not a separate function of management out of the following?
a. Cooperating
b. Planning
c. Staffing
d. Controlling
8. Functional foremanship is an extension of which of the following principles?
i. division of work
ii. discipline
iii. subordination of individual interest to general interest
iv. espirit de corps
a. only i
b. iv and i
c. iii and iv
d. ii and iii
9. Giving freedom to Indian business and industries from all unnecessary government controls and
restrictions is an example of ________.
a. Privatisation
b. Liberalisation
c. None of these
d. Globalisation
10. Planning is concerned with ________.
a. Looking forward
b. Looking old records
c. Looking back
d. Looking new records
11. Which of the following arises from the formal position?
a. Accountability
b. Responsibility
c. Authority
d. Social Groups
12. Which of the following is not a part of Place and Promotion?
a. Sales Promotion
b. Advertising
c. Personal selling
d. Warranties
13. Who said that management is soft science?
a. G.R. Terry

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b. Fayol
c. Ernest Dale
d. Keynes
14. Which of the following is not concerned with F.W. Taylor?
a. Fatigue Study
b. Scalar Chain
c. Method Study
d. Motion Study
15. Free flow of goods and services between different countries of the world is an example of:
a. Demonetization
b. Liberalization
c. Privatization
d. Globalization
16. The first step of planning is ________.
a. Implementing the plan
b. Follow up action
c. Selecting an alternative
d. Setting objectives
17. Which one is not correct in respect of the delegation of authority?
a. Convenience in business expansion
b. Development of sub-ordinates
c. Quick and better decision possible
d. Increase in administrative work
18. Marketing mix is the set of the ________.
a. Selling tools
b. Production tools
c. Publicity tool
d. Marketing tools
19. Management consists of 3 dimensions-management of work, people and operations. Which characteristic
of management is being highlighted here?
a. Pervasive
b. Multidimensional
c. Goal-oriented
d. Dynamic
20. Who is considered as father of General Management?
a. Harold Koontz
b. Henry Fayol
c. Gilbreth
d. F.W.Taylor
21. Nowadays consumers are health-conscious which is giving rise to increasing demand for Organic
products. Which factor of business environment is a highlight in the above statement?
a. Economic environment
b. legal environment
c. Social environment
d. Political environment
22. What to do and how to do is concerned with ________.
a. Contorlling

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b. Organising
c. Directing
d. Planning
23. How many standardised forms of organisation structure are there?
a. Four
b. Two
c. Three
d. No definite number
24. Which of the following is a direct channel of distribution?
a. Manufacturer, retailer, customer
b. Manufacturer, wholesaler, retailer, customer
c. None of these
d. Manufacturer to customer
Section B
25. When an organization is concerned about the personal growth and development of employees which
management objective is highlighted?
a. Social objective
b. Organizational objective
c. Personal objective
d. Growth objective
26. Espirit De Corps means ________.
a. Scalar Chain
b. Unity
c. Gang Plank
d. Order
27. The Government of India has recently come up with an amendment to Companies Act 2013 regarding
corporate social responsibility. It is a dimension of ________ environment.
a. social
b. economic
c. political
d. legal
28. Planning is a:
a. Useless Function
b. Obsolete Concept
c. Mental Exercise
d. One time process
29. What is the basis of delegation of authority?
a. Both Division of labour and Centralisation
b. Decentralisation
c. Centralisation
d. Division of labour
30. Ideas for life is the tagline of:
a. Sony
b. Samsung
c. Google
d. Panasonic
31. Radhika is engaged in manufacturing earthen coolers by using environmentally friendly methods of

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productions. Which management objective is discussed?

a. Social objective
b. Individual objective
c. Organizational objective
d. Economic objective
32. Violation of the Principle of Esprit de Corps leads to:
i. minimizing labor turnover
ii. sales turnover
iii. need for using penalties
iv. disorder
a. only iii
b. ii and iii
c. iv and i
d. i and ii
33. Facebook, Twitter and Whatsapp is the result of ________.
a. Technologcal Environment
b. Social Environment
c. Political Environment
d. None of these
34. Under which concept the companies push for the betterment of the quality of their products in their
efforts for marketing?
a. Product concept
b. Marketing concept
c. Selling concept
d. Production concept
35. How does a manager want to achieve his objectives?
a. Efficiently
b. Efficiently and effectively
c. Effectively
d. None of these
36. Airtight containers and packets used for chips, biscuits and jams etc., are the example of:
a. Product differentiation
b. Product promotion
c. Product identification
d. Product Protection
37. Under which of the following importance is given to consumer's satisfaction?
a. Selling and Production
b. Production
c. Selling
d. Marketing
38. Which of the following has a wider scope?
a. Delegation
b. Decentralisation
c. Centralisation
d. Management
39. ________ is an advantage of advertisement.
a. Less Effective

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b. Rigidity
c. Better Reach
d. Lack of Feedback
40. Which foreman is keeping the machinery and tools ready for operation by workers?
a. Repair Boss
b. Inspector
c. Gang Boss
d. Speed boss
41. The globalization of markets has brought about economies of ________.
a. all business operations
b. management
c. distribution and marketing
d. scale of production
42. It flows downwards, superior to subordinate ________.
a. Accountability
b. Responsibility
c. Authority
d. None of these
43. Kumar wanted to purchase a fuel efficient car having the latest standards regarding minimisation of
pollution. He saw an advertisement offering such a car and visited the showroom of the company
wherein the car was displayed. In this discussion, the Marketing manager told him that the company is
providing credit facilities, maintenance services and many other effective services which are helping in
bringing repeat sales and developing brand loyalty.
Identify the marketing function which the Marketing manager was discussing with Kumar.
a. Customer support services
b. Promotion
c. Pricing
d. Branding
44. In which situation the divisional structure happens to be appropriate?
a. Both where the number of major products is more than one and where the size of the organisation is
quite large
b. Where the size of the organisation is quite large
c. Where the number of major products is more than one
d. Where primarily only one product is sold
45. A bottle of hair oil is an example of:
a. Sales promotion
b. Transportation packaging
c. Primary packaging
d. Secondary Packaging
46. Which of the following is not a feature of authority?
a. It can be delegated.
b. It arises from formal position.
c. It is right to command.
d. It flows upward from subordinate to superior.
47. Under which element of marketing mix, a manufacturer decides whether to sell via middlemen or
directly to consumers?
a. Product

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b. Promotion
c. Price
d. Place

48. Assertion (A): No organisation can work without Decentralisation.

Reason (R): There is no individual who can do all the work himself only.

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.
Section C

Question No. 49 to 54 are based on the given text. Read the text carefully and answer the questions:
Super Voltage – a company that manufactures microwaves is known for its flawless planning. However,
the top management of the company accepts that some of its plans have failed in the past as the outside
business environment is unpredictable and dynamic. The company invests a huge portion of its revenue
on planning-related issues. Recently in a newspaper, the company was blamed for preventing its
employees from doing new things due to the plans which are decided by the top management.
Rajkumar a middle-level manager in the company in a seminar said that the planning aspect of a
company should be dealt with cautiously. There should be specific goals and activities to reach these
goals should also be properly executed. The company has many serious competitors in the market. Even
they unanimously agree that without planning no other function of management can exist and it’s the
basic platform on which the whole structure of management is laid. When it comes to following up of
plans it becomes very important to know the standards. The success of a plan can only be checked when
it is known how much of the set target has been met because it is at the stage of planning these targets
are set. It’s not about the past. It’s for the coming time and challenges that a company formulates a plan.
Rajkumar knows this well. He uses his intelligent imagination and foresight while formulating the plans.
49. Which features of planning have been indicated in the above paragraph?
a. Planning is a mental exercise
b. All of these
c. Planning focuses on achieving objectives
d. Planning is a primary function
50. Which importance of planning has indicated in the above paragraph?
a. Planning sets standards for controlling
b. Planning reduces the risk of uncertainty
c. Planning provides direction
d. Planning helps in decision making
51. Which limitation of planning has been indicated in the above paragraph?
a. Time Consuming
b. Both planning may not work in a dynamic environment and planning reduces creativity
c. Planning may not work in a dynamic environment
d. Planning reduces creativity
52. The company invests a huge portion of its revenue on planning-related issues, which limitation of
planning has been discussed here?
a. Planning may not work in a dynamic environment
b. Huge cost

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c. Time Consuming
d. Planning reduces creativity
53. Due to which limitation of planning company has been defamed in the news?
a. Time-consuming
b. Expensive
c. Planning doesn't guarantee success
d. Planning reduces creativity
54. The success of a plan can only be checked when it is known how much of the set target has been met
because it is at the stage of planning these targets are set. Which function of management is pointed out
here apart from planning?
a. Organising
b. Directing
c. Controlling
d. Staffing
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55. Management is important because:
a. Control on cost
b. Providing employment opportunities
c. Ensuring maximum utilisation of resources
d. Maintaining profit
56. Science, not rule of thumb, this principle was given by ________.
a. F.W.Taylor
b. James Lundy
c. Henry Fayol
d. Koontz
57. Under ________ the Reserve Bank keeps control on the money supply in order to achieve the objectives of
the general economic policy.
a. Industrial Policy
b. Fiscal Policy
c. Trade Policy
d. Monetary Policy
58. Which of the following is not a mental quality of a successful salesman?
a. Imagination
b. Self-confidence
c. Impressive voice
d. Presence of mind
59. Authority, responsibility and accountanbility are the elements of ________.
a. Informal Organisation
b. Decentralisation
c. None of these
d. Delegation
60. Providing finance at 0% which of the following adopts this method.
a. Publicity
b. Personal Selling
c. Advertisement
d. Sales Promotion

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Class 12 - Business Studies

Sample Paper 01

Solution

Section A
1. (c) Dynamic function
Explanation: Management is Dynamic
2. (c) Management should share the profit with workers
Explanation: Taylor called for complete mental revolution on the part of both management and
workers in Harmony, Not Discord principle which means:
Management should share the gains of the company, if any, with the workers.
At the same time, workers should work hard and be willing to embrace change for the good of
the company.
3. (c) mixed
Explanation: Indian market is an example of a mixed economy.
4. (a) Planing reduces creativity
Explanation: The limitation descried here is that planing reduces creativity.
5. (c) In both In business organisation and In non-business organisation
Explanation: In both business organisation and In non-business organisation ,organisation require.
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6. (b) only i
Explanation: Advertising enhances customer satisfaction and confidence.
7. (a) Cooperating
Explanation: Cooperating is not a separate function of management. Cooperating means work
together for a common purpose or benefits. Cooperation can be there in all the functions of
management. But it can not be considered as a separate function of management.
8. (a) only i
Explanation: Division of work principle.
9. (b) Liberalisation
Explanation: Liberalisation refers to the end of license, quota, unnecessary restrictions and controls
over industry and trade.
10. (a) Looking forward
Explanation: Managers make predictions for the future not for the past. The past is used as a basis to
make assumptions for the future. So, planning is concerned with looking forward.
11. (c) Authority
Explanation: Authority is the right to take the decision due to formal managerial position. It
determines the superior-subordinate relationship. It flows downward from superior to subordinate.
12. (d) Warranties
Explanation: Warranties are not a part of price and promotion it is the part of the product.
13. (c) Ernest Dale
Explanation: Ernest Dale said management is soft science.
14. (b) Scalar Chain
Explanation:
The 14 principles of management propounded by Henri Fayol. Scalar Chain is one of the
principles given by Henri Fayol which suggest that organisations should have a chain of

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authority and communication that runs from top to bottom and should be followed by
managers and the subordinates.
Fatigue study, Method Study and Motion study are work-study techniques given by F.W.
Taylor.
15. (d) Globalization
Explanation: Globalization is the process by which businesses or other organizations develop
international influence or start operating on an international scale.
16. (d) Setting objectives
Explanation: Thus planning begins with objectives because all the policies, strategies, procedures etc.
are formed to achieve objectives only. Therefore the first step of planning is setting up the objectives.
17. (d) Increase in administrative work
Explanation: Increase in administrative work is incorrect about decentralisation
18. (d) Marketing tools
Explanation: The marketing mix has been defined as the set of marketing tools that the firm uses to
pursue its marketing objectives in the target market.
19. (b) Multidimensional
Explanation: Management is multidimensional.
20. (b) Henry Fayol
Explanation: Henry Fayol is considered as the father of General Management.
Fayol was the first to identify four functions of management – Planning, Organising, Directing
and Controlling although his version was a bit different – Plan, Organise, Command,
Coordinate and Control.
Based largely on his own experience, he developed his concept of administration.
21. (c) Social environment
Explanation: Social environment focus on the factors of the society.
22. (d) Planning
Explanation: Planning involves setting objectives and developing a course of action for the future. It is
deciding in advance as what to do and how to do.
23. (d) No definite number
Explanation: No definite number of form.
24. (d) Manufacturer to customer
Explanation: A direct channel of distribution describes a situation in which the producer sells a
product directly to a consumer without the help of intermediaries.
Section B
25. (c) Personal objective
Explanation: Personal objective of management.
26. (b) Unity
Explanation:
Esprit de corps is a French phrase that translates into 'group spirit'.
It is one of the principles of Henri Fayol.
Management should promote a team spirit of unity and harmony among employees, according
to Fayol.
27. (d) legal
Explanation: legal
28. (c) Mental Exercise
Explanation: Under planning, various alternatives are listed and after evaluation of these alternatives,
the best alternative is selected. All this process involves mental exercise.

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29. (d) Division of labour

Explanation: Division of labour is a basis for delegation of authority
30. (d) Panasonic
Explanation: Panasonic uses the tagline "Ideas for life".
31. (a) Social objective
Explanation: Social objective of management.
32. (a) only iii
Explanation: Violation of the Principle of Esprit de Corps leads to the need for using penalties.
33. (a) Technologcal Environment
Explanation: The technological environment includes a change in the methods of production, use of
new equipment and machinery to improve the quality of the product, recent technological
advancement in computers and electronics and internet/ World Wide Web, etc.
34. (a) Product concept
Explanation: The main objective of the product concept is to provide a better quality of goods to
customers.
35. (b) Efficiently and effectively
Explanation: Manager can achieve his objectives by working efficiently and effectively.
36. (d) Product Protection
Explanation: Protective packaging products are designed and constructed to protect the goods from
atmospheric, magnetic, electrostatic, vibration or shock damage. Products include types of boxes or
storage containers, packing materials, liners, and spacers.
37. (d) Marketing
Explanation: The main focus of the Marketing concept is customer satisfaction.
38. (d) Management
Explanation: Management has wider scope
39. (c) Better Reach
Explanation: Better Reach is an advantage of advertising. Advertising is a medium through which a
large number of people can be reached over a vast geographical area.
40. (c) Gang Boss
Explanation: Gang Boss keeps machinery and tools ready for operation by workers.
41. (a) all business operations
Explanation: The globalization of markets has brought about economies of all Business operations.
42. (c) Authority
Explanation: Authority is the power/right to make a decision. It arises from formal job positions in the
organisation and flows from superior to subordinate.
43. (a) Customer support services
Explanation: Customer support services
44. (a) Both where the number of major products is more than one and where the size of the organisation
is quite large
Explanation: Both where the number of major products is more than one and where the size of the
organization is quite large. They are separate business units.
45. (c) Primary packaging
Explanation: It is an example of primary packaging.
46. (d) It flows upward from subordinate to superior.
Explanation: It flows upward from subordinate to superior.
47. (d) Place
Explanation: Place

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48. (d) A is false but R is true.

Explanation: No organisation can work without Delegation. Decentralisation is a policy decision, a
company may or may not choose it.
Section C
49. (b) All of these
Explanation: All of these
50. (a) Planning sets standards for controlling
Explanation: Planning sets standards for controlling
51. (b) Both planning may not work in a dynamic environment and planning reduces creativity
Explanation: Both planning may not work in a dynamic environment and planning reduces creativity
52. (b) Huge cost
Explanation: Huge cost
53. (d) Planning reduces creativity
Explanation: Planning reduces creativity
54. (c) Controlling
Explanation: Controlling
55. (a) Control on cost
Explanation: Management is important because of controlling cost.
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56. (a) F.W.Taylor
Explanation: Science, not rule of thumb, this principle was given by F.W.Taylor.
Taylor believed that there was only one best method to maximise efficiency.
This method can be developed through study and analysis.
The method so developed should substitute ‘Rule of Thumb’ throughout the organisation.
The scientific method involved the investigation of traditional methods through work-study,
unifying the best practices, and developing a standard method, which would be followed
throughout the organisation.
57. (d) Monetary Policy
Explanation: Monetary Policy are the policies of the RBI to control the money supply.
58. (c) Impressive voice
Explanation: Impressive voice
59. (d) Delegation
Explanation: Elements of the delegation are:
Authority
Responsibility
Accountability

Responsibility is derived from authority and accountability is derived from responsibility.

60. (d) Sales Promotion
Explanation: It is an important technique in sales promotion.

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