INTERNATIONAL INDIAN SCHOOL, RIYADH

FIRST TERM EXAMINATION- OCTOBER 2021

SUBJECT- BUSINESS STUDIES
CLASS: XII

TIME:90 MINUTES MAX:MARKS:40

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
Q1. ‘It is generally seen that individuals in an organisation resist change as it often means moving from a
familiar, secure environment into a newer and more challenging one’. Which point of importance of
management has been discussed here?
(a) Management helps in achieving personal objectives
(b) Management helps in achieving group goals
(c) Management helps in the development of society
(d) Management creates dynamic organisation
Q2. Irfan Khan and Naseeruddin Shah, both got training from National School of Drama, New Delhi but
they perform differently. Which feature of art is associated with the above fact?
(a) Based on practice and creativity
(b) Universal validity
(c) Existence of theoretical knowledge
(d) Personalised application
Q3. Name the principle of management suggested by Henri Fayol, which advocates that, “there should be
good superiors at all levels, clear and fair agreement and judicious application of penalties.”
(a) Authority and responsibility.
(b) Esprit De Corps
(c) Order
(d) None of the above
Q4. Which one is the correct pair from following?
(a) Middle level management – Inspector
(b) Top level management -Chief Financial Officer
(c) Supervisor level management -Director
(d) Social objective -Profit Maximisation
Q5. Same charger of mobiles can be used for different models of a particular brand. This is an example of
which of the following techniques of scientific management?
(a) Standardization
(b) Simplification
(c) Method Study
(d) Functional Foremanship
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Q6. In order to improve upon its competitive edge, Khushboo Ltd. has changed the packaging of its hair
care products. They are now available in customer friendly design, which has a nozzle attach to the lid
so that at the time of usage, the consumer doesn't need to open the cap of the bottle. Name the
marketing function being explained in the given lines.
(a) Product design and development
(b) Customer support services.
(c) Promotion.
(d) Physical distribution
Q7. “McDonalds the fast-food giant made major changes in its menu to be able to survive in the Indian
market. “Identify the characteristic of management highlighted in the above statement:
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function
Q8. ______ ensures that products reach the ultimate customers from the manufacturers.
(a) Selling
(b) Marketing
(c)Physical distribution
(d) Sales promotion
Q9. Ram was given a task by his superior to prepare a plan in 15 days. He asked two of his subordinates to
work upon two aspects of his task. One of the subordinate met with an accident and could not
complete his work. Who is answerable for this task?
(a) Ram is accountable.
(b) Ram’s subordinate is responsible. .
(c) Ram’s superior is responsible.
(d) None of them is responsible.
Q10. Star Ltd. is a garment manufacturing company. The company regularly scan business environment
and constantly adapts itself to change in environment. With all these efforts also it became difficult for
company to foresee future trends, competition in the market effects the financial plan of the company.
Identify limitation of planning.
(a) Leads to rigidity
(b) May not work in dynamic environment
(c) Reduces creativity
(d) Huge cost
Q11. ____________ keeps the subordinates in a state wherein they are constantly challenged and have to
develop solutions for the various problems they encounter.
(a) Delegation
(b) Decentralisation
(c) Controlling
(d) Responsibility
Q12. Departments and individuals in the organization are able to work in coordination. Which importance
of planning is highlighted in the above statement?
a) Planning provides direction.
b) Planning reduces overlapping and wasteful activities.
c) Planning reduces the risk of uncertainty.
d) Planning facilitates decision making.
Q13. Identify the component of branding being depicted below.

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 (a) Brand name
(b) Brand mark
(c) Trademark
(d) Generic name
Q14. According to the United Nations Environmental Agency, the world produces around 300 million tons
of plastic each year, half of which constitutes single-use items. Ford is recycling over one billion
plastic bottles every year to develop elements of the car’s interior, reducing the amount of plastic
ending up in a landfill. The American car maker has revealed that their Romanian-built Eco Sport
SUVs’ carpets are made using 470 recycled single-use plastic bottles. The process for making Ford
EcoSport carpets involves shredding bottles and their caps into tiny flakes and then heating them to
260° C. Identify the related dimension of business environment.
(a) Economic dimension
(b) Social dimension
(c) Technological dimension
(d) Political dimension
Q15. Under which of the following situations is a company not likely to fix a lower price for its product?
(a) When the competition has introduced a substitute product
(b) When the demand for the product is low
(c) When the company wants to attain market share leadership
(d) If the demand for a product is inelastic
Q16. Most plans may not always be subjected to a mathematical analysis. In such cases, subjectivity and
the manager's experience and judgement are taken into consideration. Identify the step of planning
process :
(a) Setting up of objectives
(b) Identifying alternative courses of action
(c) Selecting alternative courses of action
(d) Evaluating alternative courses of action
Q17. In order to promote the sale of company. ABC Ltd. Has decided to offer consumer durable products at
0% finance. Identify the type of marketing factor being described here:
(a) Product
(b) Price
(c) promotion
(d) None of above
Q18. External environment trends and changes will provide________
(a) Threats
(b) Goodwill
(c) Less competition
(d) Profits
Q19. In today’s dynamic business environment, companies are specialising in their core competency and
outsourcing non- core businesses. In this context, one may cite the decision of Hindustan Unilever
limited in outsourcing non-core businesses of chemicals and seeds. Some companies are outsourcing
their non-core activities like share-transfer management and advertising to outside agencies. So much
so, that even core processes such as R&D, manufacturing and marketing are being outsourced today.
Thus, the significance of ‘Business Process outsourcing’ (BPO) and ‘Knowledge Process outsourcing’
(KPO) has increased. Identify the significance of principles of management highlighted above.
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 (a) Providing managers with useful insight into reality
(b) Optimum utilisation of resources
(c) Meeting changing requirements
(d) Scientific decisions
Q20. ………………. may be defined as the framework within which managerial and operating tasks are
performed.
(a) Organisational structure
(b) Delegation
(c) Span of management
(d) None of the above
Q21. While reading the label of a pack of aluminium foil, Rohan discovered that the product was
manufactured at Hyderabad but was available for sale in many states across the country. Identify the
function of marketing which has made this possible.
(a) Warehousing
(b) Standardization and grading
(c) Transportation
(d) Warehousing
Q22. which one is specific Force for a garment manufacturing industry?
(a) Change in law
(b) change in government
(c)change in fashion
(d)change in technology
Q23. Which of the following is not a part of organizing process
(a) division of work
(b) assigning of responsibility.
(c) specialization.
(d) establising reporting relationship
Q24. What is meant by Simplification as a technique of Scientific management?
(a) Making simple methods of doing a job
(b) Putting an end to the unnecessary types, qualities, sizes etc.
(c) Simplification of selling techniques
(d) Simplifying the production techniques
SECTION :B
Q25. Face book, Twitter and Whatsapp is the result of ___________.
(a) Political Environment
(b) Social Environment
(c) Economic Environment
(d)Technological Environment
Q26. All managers dream to increase their sales and strive to achieve the organisational goals but it return
these dreams into reality managers need to work hard in thinking about future and in making business
predictions identify the function of management highlighted in the para
(a) Controlling
(b) Organising
(c) Planning
(d) All of these
Q27. Which one of the following is a marketing management philosophy?
(a) Societal marketing concept
(b) Distribution concept
(c) Direct marketing concept

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 (d) Channel concept
Q28. The Uttarakhand government has developed surveillance network using latest satellite technology.
Under this system, the state’s mining department would be in a position to check illegal mining
activities across the state. The state government is also considering the use of drones in its proposed
campaign against illegal mining. Identify the related dimensions of business environment.
(a) Economic dimension and Legal dimension
(b) Social dimension and Economic dimension
(c) Technological dimension and Political dimension
(d) Political dimension and Economic dimension
Q29. Management is essential for the following Organisation(s):
(a) Big or Small
(b) Profit or Non-Profit
(c) Service or Manufacturing
(d) All of these
Q30. Vinny refused to buy an insulated lunch box for Rs.1500 as she felt that the real worth of the product
was much less than its monetary value. Identify the factor related to pricing decision being described
in the given case.
(a) Cost of the product
(b) The utility and demand
(c) Government and legal regulations
(d) Pricing objective
Q31. This concept provides the requisite amount, quality, timing and sequence of efforts which ensures that
planned objectives are achieved with a minimum of conflict. Identify the concept identified in the
above stated line.
(a) Cooperation
(b) Coordination
(c) Management
(d) Planning
Q32. Assertion (A): Delegation is an optional policy decision and is done at discretion of top management.
Reason (R): No individual can perform all tasks on his own.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are True but Reason (R) is not the correct explanation of
Assertion (A). (c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
Q33. Radhey ltd. is diversifying its product lines. What organisational objective it is trying to achieve?
(a) Survival
(b) Profit
(c) Growth
(d) All of above
Q34. Match the concept of management in Column I with their respective explanation in Column II :
A. Authority (i) Obligation of a subordinate to properly perform the assigned
duty.
B. Responsibility (ii) Answerability for the final outcome of the assigned task.
C. Accountability (iii) It refers to the right to take decisions inherent in a
managerial position to tell people what to do and expect them to
do it.
(a) (i), (ii), (iii)
(b) (iii), (i), (ii)

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 (c) (ii), (iii), (i)
(d) (iii), (ii), (i

Q35. The sales department accuses production department for the poor sales due to late delivery of goods,
production department accuses purchase department for not delivering the raw material in time and
purchase department accuses finance department for not releasing funds on time. Which quality of
management is missing in the above situation?
(a) Planning
(b) Cooperation
(c) Coordination
(d) Poor hierarchy
Q36. A manager is required to make certain assumptions about the future which may be in the form of
forecasts. This step in planning process is known as:
a) Setting of objectives
b) Identifying alternative courses of action
c) Follow up action
d) Developing premises
Q37. “Mr. Gosain, the owner of “Stylish Garments” got a wholesale order of 600 party gowns. He
completed the production without paying extra bonus but could not deliver the gowns timely to the
wholesaler and thus the order was cancelled.
(a) Mr. Gosain is effective but inefficient
(b) Mr. Gosain is efficient but not effective
(c) Mr. Gosain is neither effective nor efficient
(d) Mr. Gosain is both effective as well as efficient
Q38. Which element provides status symbol as the advantage to customer:
(a) Branding
(b) Packaging
(c) Labelling
(d) Sales promotion
Q39. “The effect of management is noticeable in an organisation where targets are met according to plans,
employees are happy and satisfied”. Which characteristic of management is highlighted in the above
statement?
(a) Group activity
(b) Dynamic function
(c) Intangible force
(d) Continuous process
Q40. Which of the following proves that management is not an exact science?
a) Management has its own theory and principles that have developed over a period of time, but it
also draws on other disciplines such as economics, sociology, psychology and mathematics. Like any
other organized activity, management has its own vocabulary of terms and concepts.
b) Since management deals with human beings and human behaviour, the outcomes of these
experiments are not capable of being accurately predicted or replicated.
c) The application and use of principles of management is not universal. They have to be modified
according to a given situation.
d) Both b & c
Q41. In which step of planning process Pros and cons of each alternative is examined .
(a) Selecting an alternative
(b) Developing Premises
(c) Evaluating alternative courses

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 (d) Setting Objectives
Q42. The Basic aim of Functional foremanship is:
(a) Not to provide free time to workers
(b) To separate Top level management from Chief Executive officers
(c) To separate planning functions from executive functions
(d) Not to divide the work
Q43. Assertion (A ): Advertising and sales promotion are different from each other. Reason ( R ) :
Advertising is a short-term prospective where as sales promotion is a long-term perspective.
(a) Both assertion ( A ) and reason ( R ) are correct.
(b) Assertion (A) is wrong but reason (R ) is correct.
(c) Assertion ( A ) is correct but reason ( R ) is wrong.
(d ) Both assertion ( A ) and Reason ( R ) wrong
Q44. "Managers in India do the same work as managers in China or Korea or Russia." Which characteristic
of management is highlighted in this statement?
(a) Management is a group activity
(b) Management is all pervasive
(c) Both (a) and (b)
(d) Management is effective
Q45. Competition in the market can also upset financial plans, sales targets have to be revised accordingly,
cash budget also needed to be modified. Identify the limitation of planning.
(a) Planning may not work in dynamic environment
(b) Planning leads to rigidity
(c) Planning is time consuming
(d) Planning involves decision making
Q46. According to Taylor, “even a small production activity like loading figures of iron into boxes can be
scientifically planned and managed. This can result in tremendous savings of human energy as well as
wastage of time and materials.” Identify the related principle of scientific management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/her greatest efficiency and prosperity
(d) None of the above
Q47. Mohan is engaged in the manufacturing of refrigerators. He surveyed the market and found that
customers need a refrigerator with a separate provision of water cooler in it. He decided and launched
the same refrigerator in the market. Identify the marketing philosophy involved.
A) Marketing concept.
B) selling concept
C) product concept.
D) production concept
Q48. Assertion (A) The more risky the investment, the higher the returns it is likely to give. To evaluate
such proposals, detailed calculations of earnings, interest, taxes and dividends are made and decisions
taken. Reason (R) The positive and negative aspects of each proposal have least consideration in
defining objectives of an organisation.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion
(A).
b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of
Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
SECTION-C

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 Read the following text and answer Question No. 49 to 54 on the basis of the same:
A company X limited manufacturing cosmetics, which has enjoyed a pre-eminent position in business,
has grown in size. Its business was very good till 1991. But after that, new liberalised environment has
seen the entry of many MNC’s in the sector. With the result the market share of X limited has
declined. The company had followed a very centralised business model with Directors and divisional
heads making even minor decisions. Before 1991 this business model had served the company very
well as consumers had no choice. But now the company is under pressure to reform. The top level
management wants to make a major change in the overall policy of the organisation.
Q49. What organisation changes should the company bring about in order to retain its market value?
(a) It should adopt functional structure.
(b) It should adopt divisional structure.
(c) It should adopt centralisation.
(d) It should adopt decentralization
Q50. How will the changes suggested by you help the firm?
(a) It will help in increasing managerial and operational efficiency, resulting in increased profit.
(b) It will facilitate expansion and growth as new divisions can be added without interrupting the
existing operations by merely adding another divisional head and staff for the new product line.
(c) It will help in quick decision-making since decisions will be taken at levels which are nearest to
the points of action.
(d) It will facilitate effective management.
Q51. The extent of _________ decides the power that each job position enjoys in the organisation.
(a) Authority
(b) Responsibility
(c) Delegation
(d) Decentralisation
Q52. Centralisation refers to
(a) Retention of decision making authority
(b) Opening new branches
(c) Separation of divisions or levels
(d) Dispersal of decision making authority.
Q53. “This has reduced the need for direct supervision by superiors, has promoted flexibility, initiative and
faster decision making.” Identify the point of importance of the reform suggested by you:
(a) Develops initiative among subordinates
(b) Develops managerial talent for the future
(c) Relief to top management
(d) Better control
Q54. “The change made by top management awards greater autonomy to the lower levels of management.”
Identify the point of importance of the philosophy of top management:
(a) Quick decision making
(b) Better control
(c) Relief to top management
(d) Facilities growth
Q55. “The organization has decided to monitor the external business environment so that it can adopt
suitable measures to increase its client base.” Which importance of business environment is
highlighted in the above lines.
a) It helps in improving performance
b) It helps in assisting planning and policy formulation
c) It helps in coping with rapid changes
d) None of the above

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Q56. “IBF” washing machine manufacturing company is a renowned company for marketing washing
machine. It performs various activities like, market analysis, product designing or merchandising,
packaging, warehousing, branding, pricing, promotion and selling. The company maintains good
customer relations through various follow up activities. This helps the company in procuring repeated
sales orders. Name the concept related to the activities mentioned in the above paragraph.
(a) Marketing
(b) Selling
(c) Branding
(d) None of the above
Q57. Bath and body work Ltd has decided to conduct a hygiene camp in rural areas wherein the company
will distribute a kit comprising of hand wash and soap and also plans to organize street plays to
highlight the importance of hygiene and sanitation in our daily lives.” Identify tool of promotion in
given line.
a) Personal Selling
b) Sale promotion
c) Advertisement
d) Public Relation
Q58. Which of the following statement not true with reference to planning?
(a) Planning is prerequisite for controlling
(b)Planning does not look into future
(c) Planning facilitates coordination in organisation
(d) Planning focuses on achieving objectives
Q59. The sales manager assigned a target of selling 40 RO water Purifiers in a month to a group of 10 sales
executives. They mutually decided to sell 4 purifiers each. However, after selling 1 purifier, Krish
(one of the sales executives) met with an accident. The other executives did not pay any attention to
the remaining target of Krish and concentrated on their individual sales target. At the end of the
month, only 37 purifiers could be sold. Identify the principle of management violated in the given
case?
(a) Esprit de corps
(b) Stability of personnel
(c) Remuneration of employees
(d) Equity
Q60. Which of the following statements best describes ‘Mental Revolution’?
(a) It implies change of attitude
(b) The management and workers should not play the game of one upmanship.
(c) Both management and workers require each other.
(d) Workers should be paid more wages.

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