SMJ TUTORIAL

SAMPLE PAPER
SESSION: 2021 – 2022

Subject: BUSINESS STUDIES Time: 90 mins

Class: XII Max. Marks: 40
General Instructions:
• Question Paper is divided in 3 sections
• Section A has 24 questions. Attempt any 20 questions
• Section B has 24 questions. Attempt any 20 questions
• Section C has 12 questions. Attempt any 10 questions
• All questions carry equal marks. There is No negative marking.

SECTION A: Multiply Type Based Questions

1 Which aspect of management involves cost-benefit analysis and the relationship between inputs and outputs?
(a) Effectiveness (b) Efficiency (c) Coordination (d) Controlling
2 Two dancers, two speakers, two actors and two writers will always differ in demonstrating their skills. In the
same way students of management also, apply these principles differently depending on how creative they
are. Above lines highlights the nature of management.
Identify the nature of management.
(a) Management is an art (b) Management is a science
(c) Management both art and science (d) Management as profession
3 This function of management relating to laying down the foundation for carrying out the other functions of
management successfully is:
(a) Organising (b) Staffing (c) Planning (d) Controlling
4 Management is considered important for an organisation because:
(a) It helps an organisation to adapt to the changes (b) Seeks to integrate individual efforts
(c) It helps in development of the society (d) All the above
5 A purchase manager of a company has to purchase 500 tons of raw material. Apart from the other suppliers in
the market, his son also supplies that raw material. The manager purchases the raw material from the firm of
his son at a rate higher than the market rate, which principles of management has been violated by this situation?
(a) Unity of command (b) Unity of direction
(c) Subordinating personal interest to general interest (d) Equity
6 Which of the following statements is/are true with reference to principles of management?
(a) The principles are guidelines to action. (b) The principles denote a cause and effect relationship.
(c) Principles help the manager to take decisions while performing various management functions.
(d) All of the above
7 The application of this principle of management leads to higher production and better work for the same effort.
Identify the related principle of general management.
(a) Discipline (b) Equity (c) Division of work (d) Order
8 Management principles increases managerial efficiency as the manager leaves routine meeting to his/her
subordinates and deal with exceptional situations which require his/her expertise by following the principle of
delegation. What does the above case signify about management?
(a) Meeting changing environment requirements. (b) Providing managers with useful insights into reality.
(c) Fulfilling social responsibility. (d) Management training, education and research.
9 Since more number of people have become more beauty and health conscious, our economy has witnessed an
unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature of business
environment being described in the above lines is:
(a) Totality of external forces (b) Dynamic nature (c) Interrelatedness (d) Relativity
10 Which of the following is not the component of Specific Forces of business environment ?
 (a) Technology (b) Customers (c) Investors (d) Employees
11 As per the directions issued by the Supreme Court, the government passed an order to ban the sale of tobacco
products within the area of 200 meters of all educational institutions. Identify the dimension of business
environment highlighted in this statement.
(a) Legal environment (b) Social environment (c) Political environment (d) None of these
12 According to a report by the India Staffing Federation (ISF), India has emerged as the fifth largest market
worldwide in flexi-staffing in 2018 and the country would have 6.1 million flexi-workforce by 2021. It showed
that Haryana, Gujarat, Karnataka, Madhya Pradesh and Telangana are the states with high growth potential for
flexi- staffing but Andhra Pradesh tops the list of states with favourable business environment. Identify the
feature of business environment being discussed above,
(a) Relativity (b) Dynamic nature (c) Uncertainty (d) Interrelatedness
13 It is not always true that just because a plan has worked before it will work again. Identify the related
limitation of planning.
(a) Planning leads to rigidity. (b) Planning reduces creativity.
(c) Planning may not work in a dynamic environment. (d) Planning does not guarantee success.
14 To see whether plans are being implemented and activities are being performed according to the schedule, is
a step of planning process. Identify the step.
(a) Implement the plan (b) Choosing an alternative (c) Identifying alternatives (d) Follow up action
15 Which one of the following is not a step of planning:
(a) To forecast (b) Establishing objectives
(c) Valuation of objectives (d) Induction of employees on the job
16 Santo Ltd., has to develop its organisational plan for the current year and for this purpose they hired
professional consultants from United States. These consultants incurred a lot of money in collection of facts,
figures, surveys, etc. including the salaries of the consultants. This whole process of planning has already
proved to be a very costly affair and the eventual total cost may exceed the gains expected from the plan.
Should Santo Ltd. continue with existing planning? Explain with reasons. Also explain, which limitation of
planning is reflected in this case?
(a) Planning is rigid (b) Planning reduces creativity
(c) Planning does not work in dynamic environment (d) Planning involves huge cost
17 It leads to effective management as by relieving the employees from doing routine work, it provides them with
time to excel in new areas. Identify the concept:
(a) Decentralisation (b) Delegation (c) Authority (d) None of these
18 An obligation of a subordinate to complete an assigned task given by his superior. Identify the element of
delegation.
(a) Authority (b) Accountability (c) Responsibility (d) None of these
19 Amol works as a manager who supervises all the situations and functionalities related to a particular
department. Here the authority is more than the other type of organization structure. Identify the type of
structure.
(a) Divisional structure (b) Functional structure (c) Both (a) and (b) (d) None of these
20 Which term denotes “The number of subordinates that can be effectively managed by a superior”?
(a) Span of control (b) Informal organisation (c) Responsibility (d) None of these
21 Which of the following is not the function of packaging?
(a) Product protection (b) Pricing objectives (c) Promotion (d) Product identification
22 A tube of shaving cream usually comes in a cardboard box. This is an example of:
(a) Primary package (b) Secondary package (c) Transportation package (d) None of these
23 When a customer shows proof of purchase he/ she is repaid a part of money paid by him as price. Identify the
sales promotion technique.
(a) Discount (b) Rebate (c) Refund (d) Lucky draws
24 Hemlata started an electrical appliances shop. To increase her customers, she hired 10 sales person who will
sell the products door to door. Identify the promotional tool used here.
(a) Advertising (b) Sale promotion (c) Public relations (d) Personal selling

SECTION B: Case - Study Based Questions

 Skin Care is a progressive company which has achieved new records in the field of cosmetics. Recently
the company decided to hand over the decision making authority to the lower most level of employees.
For this, the company went for a thorough planning. The positive results were noticed due to this change.
The employees felt a lot of development in their skill and started taking first step to manage things on
their own. Some major newspapers also covered this development. The production of the company
increased. The company’s top management could now focus on new areas of innovation as the employees
turned more reliable. One day, it so happened that the company’s manufacturing branch in North could
not fulfil even half of its production target and the operations manager was held answerable for the
assigned target. He was called in the office. When he was questioned, it was found that his right to
command the workers was insufficient and it should have been more to create results. The management
decided to listen to him and he was given more power. When he went to the shop floor he told the workers
that the standard of behaviour of the workers should come from the official rules and procedures.
25 Identify the function of management performed by Skin Care:
(a) Planning (b) Directing (c) Organizing (d) all of these
26 Identify the concept of management used by Skin Care
(a) Coordination (b) Cooperation (c) Delegation of Authority (d) Decentralisation
27 “The operations manager was held answerable for the assigned target”. Which element of directing is
being highlighted here?
(a) Authority (b) Accountability (c) Responsibility (d) All of these
28 “When he was questioned it was found that his right to command the workers was insufficient”.
Which element of directing is being highlighted here?
(a) Authority (b) Accountability (c) Responsibility (d) All of these
Krishna and Saroj are both qualified CA and good friends. After obtaining a certificate of practice, they
decide to pursue a career of their own choice. Krishna starts own practice in the city whereas Saroj joins
a Government company. They meet after a long time in a party. Krishna invites Saroj to visit his office
and she accepts his invitation. She observes at his office that there is a fixed place for everything and
everyone and it is present there so that there is no hindrance in the activities of the office. Also, Krishna
always tends to replace ‘I’ with ‘We’ in all his conversations with the staff members. Later on Krishna
shares with her that he always deals with lazy staff sternly to send the message that everyone is equal in
his eyes.
29 Whether management is____________ profession
(a) Full fledged (b) Soon going to be (c) Not (d) None of these
30 “She observes at his office that there is a fixed place for everything and everyone” Identify the Principle of
management highlighted here:
(a) Equity (b) Order (c) Espirit de corps (d) Unity of command
31 “Krishna always tends to replace ‘i’ with ‘We’ in all his conversations with the staff members”. Which
principle of management is being highlighted here:
(a) Stability of personnel (b) Equity (c) Espirit de corps (d) None of these
32 “Krishna shares with her that he always deals with lazy staff sternly to send the message that everyone is equal
in his eyes”. Identify the management principle.
(a) Equity (b) Subordination of Individual interest to general interest (c) Scalar chain (d) None of these
Shobhit, aspires to work with a socially and environmentally committed company as he does not want
to work just for monetary benefits but also the brand value of the company he works for in the society
matters a lot to him. Therefore, he has joined Friendly Technologies a Noida-based Infotech company.
The company has built India’s largest e-waste recycling plant. The company strives to be one of the
leading players in this business which has huge potential not only in terms of generating huge revenues
and profits but also wants to contribute to the environment issues that have become crucial worldwide.
The company sees big business in the mountains of e-waste in Noida which produces 1,00,000 tonnes of
e-waste a year. The company plans to make its millions by extracting metals such as gold and platinum
from the e-waste piling up in the city. To start the business, the company has obtained a licence from U.
P. Pollution Control Board.
33 “The company has built India’s largest e-waste recycling plant”. Identify the dimension of business
environment.
(a) Social environment (b) Technological environment (c) Legal environment (d) None of these
34 “The company strives to be one of the leading players in this business which has huge potential not only in
terms of generating huge revenues and profits but also wants to contribute to the environment issues that have
become crucial worldwide”. Which dimension of business environment is being referred here?
(a) Political environment (b) Legal environment (c) Social environment (d) Economical environment
35 “To start the business, the company has obtained a licence from U. P. Pollution Control Board.” Which
dimension of business environment is being talked about.
(a) Economical environment (b) Legal environment (c) Both (a) are (b) (d) Political environment
36 “The company plans to make its millions by extracting metals such as gold and platinum from the e-waste
piling up in the city.” Which objective of business is being fulfilled?
(a) Organizational objective (b) Social objective (c) Personal objective (d) All of these
Ajeet is an energetic manager who makes plans and policies for his Department. He tries to make best
plans, for this he uses foresightedness and imagination. He has delivered many successful projects
because of his good plans. He always makes alternative plans and selects the best out of them after
evaluating their pros and cons. However, he knows all plans cannot be successful and requires a lot of
time and energy. He also knows that the business environment is dynamic, it can change. One of his
friends, suggested him to take suggestions from others when he makes his plans and also consider plans
made by others.
37 At which level of Management, does Ajeet works:
(a) Top Level Management (b) Middle Level Management
(c) Lower Level Management (d) none of these
38 “Planning involves foresightedness and imagination”. Which feature of Planning is highlighted here?
(a) Mental exercise (b) Forward looking (c) Decision making (d) None of these
39 “He always makes alternative plans and selects the best out of them after evaluating their pros and cons.”
Which feature of planning is being highlighted here?
(a) Forward Looking (b) Decision Making (c) Both (a) and (b) (d) None of these
40 “Planning requires lot of time and cost”. This is one of ___________ of planning.
(a) Advantages (b) Disadvantages (c) It can be both (a) and (b) (d) None of these
After completing a course in travel and tourism, Amit started his own travel agency. For smooth
functioning of his business, he decided to create fourteen job positions. Further, he divided them into
four departments on the basis of functions namely, front office department including online queries,
reservations, department for airways, railways and roadways, accommodation booking department, and
securing payments department. In order to avoid any interdepartmental conflicts, he decides to specify
clearly the lines of authority and areas of responsibility for each job position.
41 Identify the function of management performed by Amit:
(a) Planning (b) Organizing (c) Both (a) and (b) (d) None of these
42 Identify the framework created by Amit within which all managerial and operating tasks are to be performed
in his organization.
(a) Organizational structure (b) Functional structure (c) Both (a) and (b) (d) None of these
43 Which type of organizational structure is used by Amit in his company?
(a) Functional structure (b) Divisional structure (c) Both (a) and (b) (d) None of these
44 Authority and responsibility are related to which concept of management:
(a) Delegation of Authority (b) Coordination (c) Both (a) and (b) (d) None of these
Radhika, Rohan and Mahesh are old friends and now they are doing different kinds of business. They
regularly meet and discuss their business ideas and exchange notes on customer satisfaction, marketing
efforts, product designing, selling techniques, social concerns etc. In one of such meetings, Radhika told
that most of the sellers were exploiting the consumers and were not paying attention towards the social,
ethical and ecological aspects of marketing, whereas she was not doing so. Rohan told that they were
under pressure to satisfy the consumers, but stated that the consumers would not buy or not buy enough
unless they were adequately convinced and motivated for the same. Mahesh added that a company
cannot achieve its objectives without understanding the needs of the customers. It was the duty of the
 manufacturer to keep consumer satisfaction in mind because business is run by the resources made
available to them by the society. He further stated that he himself was taking into consideration the
needs of the customers.
45 Identify the thinking or philosphy that guided Radhika in the marketing efforts of their business.
(a) Product Concept (b) Marketing Concept (c) Selling Concept (d) Societal Marketing Concept
46 Identify the thinking or philosphy that guided Rohan in the marketing efforts of their business.
(a) Selling Concept (b) Product Concept (c) Production Concept (d) None of these
47 Identify the thinking or philosphy that guided Mahesh in the marketing efforts of their business.
(a) Product Concept (b) Production Concept (c) Marketing Concept (d) None of these
48 Identify the concept why Mahesh was not able to achieve its objectives.
(a) Product Concept (b) Production Concept (c) Marketing Concept (d) None of these

SECTION C: Assertion-Reason Based Questions

Directions: In the following questions, a statement of assertion is followed by a statement of reason.

Mark the correct choice as:
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
49 Assertion: Coordination is the base of all management activities.
Reason: It is not a separate function, but is the essence of management.
50 Assertion: Management is an art.
Reason: It Includes perfect management like perfection in arts
51 Assertion: Discipline is absolutely essential for achieving goals in business.
Reason: It involves a series of functions for achieving goals like planning, organizing, staffing, directing and
controlling.
52 Assertion: One head one plan one worker is unity of command.
Reason: It states workers should receive orders from only one boss at a time.
53 Assertion: Liberalization involves removal of restriction on movement of goods.
Reason: It increases liquidity in market.
54 Assertion: Aim of demonetization was to remove corruption, black Money, indirect Funding etc.
Reason: Rise in Public sector wealth.
55 Assertion: Planning does not work on natural calamities.
Reason: It does not include planning for disaster management and earthquake.
56 Assertion: Planning is activity done by top management.
Reason: Most of the time subordinates not even try to formulate plans they only carry out orders.
57 Assertion: Delegation includes accountability.
Reason: Accountability is beyond the rules and regulations.
58 Assertion: Organising helps in maximum use of human resources in organisation.
Reason: Ability and commands provided by top managements is necessary for working.
59 Assertion: Labelling is compulsory by law.
Reason: It Provides information of product to consumer about product.
60 Assertion: Advertisement is flexible in nature.
Reason: Promotion through advertisement transmit message to customers according to their requirement.