Class 12 BST

KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION
SAMPLE PAPER SET-1

CLASS – XII SUBJECT: BUISNESS STUDIES
TIME: 3 HOURS MM:80
General instructions :
1 This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75
words.
5. Answers to the questions carrying 4 marks may be about 150
words.
6. Answers to the questions carrying 6 marks may be about 200
words.
7. Attempt all parts of the questions together
Q. QUESTIONS MARKS
NO.
1. Identify the reason which makes management important in the light of 1
the fact that it is generally seen that individuals in an organization resist
change, as a change often means moving from a familiar, secure
environment into a newer and a more challenging one.
a. Management helps in achieving group goals.
b. Management creates a dynamic organization
c. Management increases efficiency
d. Management helps in the development of society.
2 Tarang enterprises limited is planning to increase its sales by 30% in the 1

next quarter. identify the features of management being highlighted in
the given statement.
(a) Management is all pervasive.
(b) Management is Goal oriented process.
(c) Management is a continuous process.
(d) All of the above.
3 The economic survey 2019 suggest that the psychological biases can be 1
used in the realm of tax compliance. It is in favour of using religious
norms such “dying in debt is a sin” to improve tax compliance.
Identify the related dimensions of business environment.
(a) Legal and social dimension

(b) Social, and economic dimension
(c) Technological and political dimension
(d) Political and economic dimension
4 India continue to be a lower-middle-income country along with 46 1
other, while sri Lanka has climbed to the upper middle income group for
the fiscal year 2020 , according to world bank classification of countries
by income levels, released on July 1st 2019.
(a) Social
(b) Technological
(c) Economic
(d) political
5 Yash runs a logistic company. The tour InchargeS of each trip in the 1
company are expected to submit a report to the event manager on the
completion of every trip.
Identify the step in the controlling process being described in the above
lines.
(a) Setting of standards
(b) Measurement of actual performance
(c) Taking corrective action
(d) Analysing the deviations
6 In a marketing firm, the financial manager pay more attention towards 1
an increase of 3% in the marketing cost as compared to a 15% increase
in the courier expenses.
Identify the concept being used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
(d) None of the above
7 Jai is working as marketing manager in a company. he has been given 1
the task of selling 1,00,000 units of a product at the cost of Rs. 100 per
unit with in 20 days. He is able to sell all the units with in the stipulated
time, but had to sell last 1,000 units at 20% discount in order to
complete the target. In such a situation, he will be considered to be
(a) An efficient manager
(b) An effective manager
(c) Both effective and efficient manager
8 Risahabh has joined as a creative head in an entertainment company. He 1
always ensures that the work has been divided into small and
manageable activities and also the activities of similar nature are
grouped together.
Identify the related step in organising process being mentioned in the
above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationship
9 Lakshay has been given the task of arranging for five-day conference for 1
foreign delegates. In order to smooth functioning of the event, he has
made two people as co-ordinators to take care of activities related to
registration and refreshment.
Identify the function of management being carried out by Lakshay.
(a) Planning
(b) Staffing
(c) Organising
(d) directing
10 The growing awareness about healthcare has led to an increase in the 1
demand for healthcare products and services in the country.
Identify the feature of business environment being described in the
above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
(d) interrelatedness
11 Which of the following is not a component of specific forces of business 1
environment?
(a) Technological conditions
(b) Customers
(c) Employees
(d) investor
12 Statement-I Transportation helps in creating time utility and 1
warehousing helps in creating place utility
Statement-II The process of classification of products into different
groups on the basis of their important characteristics is known as
standardization.
Choose the correct option from the options given below:
a. Statement I is true and II is false
b. Statement II is true and I is false
c. Both the statements are true
d. Both the statements are false
13 In order to promote the habit of health and hygiene among weaker 1

sections of the society, Abhyas limited has launched low cost packs of
hand wash. Identify the type of marketing philosophy being adopted by
the company.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept
14 Keeping in view the recent trends of sales regression, sona limited has 1
decided to offer a flat 15% discount on all the products. Identify the
related function of marketing being described in the given lines.
(a) Packaging and labelling
(b) Branding
(c) Pricing
(d) promotion
15 Good health limited has decided to launch a new range of water bottles 1
with in built water purifier. Instead of marketing the product by is
generic name, the company has decided to call it ‘Purifire’. Identify the
type of marketing function being described in the given lines.
(b) Branding
(c) Pricing
(d) promotion
16 Sugandha purchased a pack of crayons for her daughter from nearby 1
stationery shop. She noticed that the crayons were packed in a portable
transparent plastic bag.
Identify the level of packaging being described in the above case.
(a) Primary packaging
(b) Secondary packaging
(c) Transportation packaging
(d) None of the above.
Read the following text and answer question No.17-20 on the basis
of the same:
PISQAA SOLAR limited is searching options to raise ₹20,000 crores

from the primary market for diversification and modernisation of
existing projects. It hired the services of a renowned financial
consultancy firm, DHAN LAXMI PVT. LTD. for suggesting options for
the same. DHAN LAXMI PVT. LTD. suggested a list of options to the
Board of Directors of the company. It was decided that for the
immediate requirement of ₹1500 crores the company will give a
privilege to existing shareholders to subscribe to a new issue of
shares according to the terms and conditions of the company. ₹4500
crores would be raised by allotment of securities to a consortium of
financial institutions, instead of inviting subscription from the public
by making a direct appeal to investors to raise capital. It was further
decided to raise capital to the tune of ₹6000 crores through an
issuing house. All these options were accepted by the Board of
Directors. The Board further decided to raise ₹8,000 crores through
the on-line system of the stock exchange by entering into an
agreement with the exchange
17 Identify the method of floatation of new issues in the primary 1
market, not taken up by ISQAA SOLAR LTD.
A. Offer for sale

B. Rights issue
C. E-IPO
D. Offer through prospectus
18 “₹4500 crores would be raised by allotment of securities to a 1
consortium of financial institutions, instead of inviting subscription
from the public by making a direct appeal to investors to raise
capital.’’ Identify the method of floatation of new issues in the
primary market being discussed above, which the company has
decided to use.
A. Offer for sale B. Private placement
C. Right Issue D. Offer through Prospectus

19 Identify the reason which has made the firm raise funds from the 1
institutional investors.
A. It helps to raise funds quickly B. It is not expensive
C. Both a & b D. None of the above.

20 How much money was raised by the company through E-IPO’s 1
A.₹8000 crores B. ₹4500 crores
C. ₹20,000 crores D. ₹6000 crores

21 Raman is working as a plant superintendent in Tifco ltd. Name the 3
managerial level at which he is working. State any two functions he will
perform as plant superintendent in this company.
22 Explain Internship training and vestibule training and classify them 3
as on-the-job and off-the-job methods of training.
23 Which function of management ensures a manager that activities in an 3
organisation are performed as per plan?
Name and state some points of its importance.
Or
“It is generally believed that measurement of performance should be
done after the task is completed.” Identify and explain the step in the
process of the function of management being discussed above and
the step followed by the same in the process.
24 Explain any three functions of stock exchange. 3
OR
Money market is essentially a market for short term funds. In the light of
this statement state any three features of money market.
25 In an interview with a leading news channel, Mr. Ramesh Kwatra, 4
CEO of ‘Get My Job’ has suggested that the Companies which want
more and more people to apply for jobs in their organization
should make the process for applying for jobs easier and candidate
friendly.
Name and explain the next two steps which follow the step, in the
process of the function of management being discussed above.
26 Pranav is a supervisor at ‘Ghan Shyam Cake and Biscuits Factory’. The 4
factory produces 10,000 packets of cake and biscuits every day. As a
supervisor Pranav ensures that work goes on smoothly and there is
no interruption in production. He is a good leader who gives orders
only after consulting his subordinates, working out the policies with
the acceptance of the group. Identify and explain the leadership style
being adopted by Pranav.
27 Explain any Four points that highlight the importance of directing 4
function of Management.
Or
Identity and explain the elements of directing mentioned below
(A) Nistha, a manager, has the ability to influence others to

bring about a change in their behaviour.
(B) Seeraj, a managing director, declares share in the profits to
the manager for their contribution to increase profits of the
company.
28 Explain any four factors that can affect the Fixed capital requirement 4
of a company.
OR
Explain any four factors that affect the choice of capital structure of a
company
29 Raghu wants to start a business of selling Simple masks after the 4
outbreak of the global pandemic of COVID-19. Due to the uncertain
market conditions he wants to make a low investment in fixed
capital. Suggest how the decisions related to the choice of technique
and financing alternatives can help Raghu in ensuring a low
investment in fixed capital requirements.
30 Explain the following rights of consumers provided by Consumer 4
Protection Act, 1986:-
(a) Right to Information
(b) Right to seek redressal
31 Haryaram’ is a famous chain selling a large variety of products in the 6
indian market. Their products include chips, biscuits, sweets and
squashes. It charges a comparatively higher price than its competitors as
it sells quality products. Besides, it offers regular discounts to its
customers and easy credit terms to its retailers. It has five of its own
retail shops. It also sells its products through various grocery stores to
that the products are made available to customers at the right place, in
the right quantity and at the right time. It regularly uses different
communication tools to increase its sales.
The above para describes the combination of elements marketing mix
used by Haryaram to prepare its market offering. Identify and explain
the elements.
Or
After acquiring the necessary knowledge and skills on starting an
Aloevera Farm. Ashok wanted to be the leading manufacturer of
Aloevera products worldwide. He observed that the products were
expensive as the demand of the products was more than supply. He was
also keen to promote methods and practices that were economically
visible, environmentally sound and at the same time protecting public
health.
Ashok's main consideration was about the amount of money paid by the
consumers in consideration of the purchase of Aloevera products. He
also thought that competitors prices and their anticipated reactions to
be considered for this.
After gathering and analysing information and doing correct market

planning, he came to know that the consumers compare the value of a
product to the value of money which they are required to pay. The
consumers will be ready to buy a product when they perceived that the
value of the product is at least equal to the value of money which they
would pay.
Since he was entering into a new market, he felt that he may not be able
to cover all costs. He knew that in the long run the business will not be
able to survive unless all costs are covered in addition to a minimum
profit.
He examined the quality and features of the products of the competitors

and the anticipated reactions of the consumers. Considering the same
he decided to add some unique features to the packaging and also
decided to provide free home delivery of the products.
The above case relates to a concept which is considered to be an

effective competitive marketing weapon. In conditions of perfect
competition most of the firms compete with each other on this concept
in the marketing of goods and services.
(a) Identify the concept.
(b) Explain briefly any four factors discussed in the above case related
to the concept so identified.
32 Explain the following principles of Management: 6
(1) Discipline
(2) Scalar chain
(3) Stability of tenure of personnel
33 Rishu, Ashu and Ravi have decided to start a business of manufacturing 6
toys. They identified the following main activities which they have to
perform; Purchase of raw materials, Purchase of machinery, Production
of toys, Arrangement of finance, Sale of toys, Identifying the areas
where they can sell their toys Selection of employees In order to
facilitate the work they thought that four managers should be appointed
to look after Production, Finance, Marketing’ Personnel. Identify the
function of management involved in the abovementioned para. Quote
the lines from the above para which help you in identifying this function.
State the steps followed in the process of this function of management.
34 Planning is worth the huge costs involved? Do you agree? Explain 6
any four reasons in support of your answer.
OR
“If the project is important then more alternatives should be
generated and thoroughly discussed amongst the members of the
organisation.” Identify and explain the step in the process of planning
being discussed above. Also explain the remaining steps which will
have to be carried out to complete the process.
SAMPLE PAPER SET-2
TIME: 3 HOURS MM:80
General Instructions:
(i) This question paper contains 34 questions.
(ii) Answers to questions carrying 1 mark may be from one word to one sentence.
(iii) Answers to questions carrying 3 marks may be from 50 – 75 words.
(iv) Answers to questions carrying 4 marks may be about 150 words.
(v) Answers to questions carrying 6 marks may be about 200 words.
(vi) Attempt all parts of a question together Marks are given at the end of each question
Q.No QUESTIONS Marks
1 On 8 Nov, 2016, Govt of India declared that prevailing currency RS 500 1

and RS 1000 will be invalid. Give the term to which this statement is
trying to indicate.
(a) Globalisation
(b) Demonetization
(c) Liberalisation
(d) none of these
2 Keeping in view the changes in the consumer demands and preferences 1

‘Tastemaker Bakery’ has reduced the sugar and fat content in its
products. This approach of business shows that management is
(a) An intangible force
(b) A group activity
(c) A dynamic function
(d) A multidimensional activity
3 Organizing helps in optimum utilization of resources. Which type of 1

resources does it refer?
(a) Man
(b) Material
(c) Money
(d) All of these
4 Alpha Ltd. was manufacturing Auto spare parts. To improve the 1

efficiency of employees the company provided training to their
employees by inviting an expert who demonstrated the whole process of
manufacturing. The expert quoted that all deviations cannot be
controlled, so manager must know which deviation in key areas must be
attended urgently as compared to deviation in non-key area. He also
suggested that human beings are bound to brake mistakes as manager
should not take strict action on every minute mistake of workers, rather
he can fix a range of deviation and take action if deviation is above the
specified. Name the two ways of analyzing deviation mentioned above.
(a) Critical Point Control
(b) Management by exception
(c) both (a) and (b)
(d) none of these
5 The collection of utilities is known as ________. 1
(a) Purchaser
(b) Seller
(c) Product
(d) Market
OR
Sugandha purchased a pack of crayons for her daughter from nearby


6 Delegation provides a ready workforce to take up leading position in a 1

new venture. Which importance of delegation is stated here?
(a) Motivation of employees

(b) Facilitation of growth
(c) better coordination
(d) Efficient management
7 Through ……… management helps individuals to develop team spirit, 1

cooperation and commitment to group success.
(a) Coordination
(b) Supervision
(c) Controlling
(d) Motivation and Leadership

environment?

(b) Customers
(c) Employees
(d) Investors
9 Identify the correct sequence of the steps involved in the controlling 1

process.
(a) Measurement of actual performance, Taking corrective action,
Setting performance standards, Comparison of actual performance with
standards, Analysing deviations
(b) Comparison of actual performance with standards, Setting
performance standards. Measurement of actual performance, Analysing
deviations, Taking corrective action
(c) Setting performance standards, Measurement of actual performance,
Comparison of actual performance with standards, Analysing deviations,
Taking corrective action
(d) Taking corrective action, Measurement of actual performance,
Comparison of actual performance with standards, Analysing deviations,
Setting performance standards
10 Rohan works as a production manager in Global Enterprises Limited. He 1

has been given the task of getting 1000 units of hand woven table mats
manufactured at the cost of 150 per unit within 10 days. In order to be
acknowledged as an effective manager, he must ensure that
(a) The cost of production does not exceed 150 per unit
(b) The work is completed within 10 days even at higher cost per unit
(c) The cost of production is less than 150 per unit
(d) All of the above
Read the following text and answer questions no.17-20 on the basis of
the same topic:
Mansi, a shoe manufacturer for school students, decided to maximise
her profit by producing and distributing at large scale and thereby
reducing the Average Cost of production.
11 Name the marketing management philosophy Mansi is following. 1
(a) Product concept
(c) Channel concept
(d) Selling concept
12 1
Which one of the following is a marketing management philosophy?
(a) Societal marketing concept.
(b) Distribution concept
(c) Direct marketing concept
(d) Channel concept
13 Main focus of this marketing management philosophy is 1
(a) Aggressive advertisement
(b) Distribution concept
(c) Maximise the quality of product
(d) Maximise the quantity of product
14 Which marketing management philosophy is most concerned about the 1
customer
(a) Product concept
(d) Selling concept

16 ________________ is a number assigned to each transaction by the 1
stock exchange and is printed on the contract note.
a. Client code number
b. Unique order code
c. Permanent account number
d. Depository participant number
17 Arrange the steps involved in trading procedure at the stock exchange in 1

correct sequence :
i) Settlement of order
ii) Opening of Demat Account
iii) Placing of order
iv) Execution of order
a) (ii) ; (iv);( iii);(i)
b) (ii) ;(i) ;(iii);(ii)
c) (iii);(ii);( ii);(i)
d) (ii);(iii);(iv);(i)
18 Stock exchange is known as __________ market for securities. 1

(a) Primary market
(b) Secondary market
(c) Capital market

19 Which of the following statements is incorrect? 1
a. Providing liquidity to securities is one of the functions of stock

exchange
b. Process of holding shares in electronic form is known as

Dematerialization
c. Securities Exchange Board of India performs the regulatory function of

controlling insider trading and imposing penalties for such practices.
d. Capital market consists of Commercial banks, Development banks and

stock exchanges
20 Since more number of people have become more beauty and health 1
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
DESCRIPTIVE QUESTIONS
21 A company X Ltd. Is setting up a new plant in India for manufacturing 3

auto components? India is highly competitive and cost effective
production base in this sector, X Ltd. Is planning to capture about 40% of
the market share in India and also export to the tune of at least $5
million in about 2 years of its planned operations. To achieve these
targets it requires a highly trained and motivated work force. You have
been retained by the company to advise it in this matter.
i. Outline the process of staffing the company should flow.
ii. Which sources of recruitment should the company rely
upon?
iii. Which methods of training and development should
company initiate?
OR
Resolutions Pvt. Ltd. is a publishing company. Its book on Business
Studies for class XII is in great demand. As a result, the employees in the
marketing department are always racing against time. The employees
have to work overtime and on holidays to cater to the demand.
Managers in the marketing department are under stress as they have to
handle more than two territories. The work stress has led to
dissatisfaction among the employees and managers. Name and explain
the step of staffing process which has not been performed properly.
22 Incorporated in 1990, Raju diary Ltd is one of the leading manufacturers 3

and marketers of diary-based branded foods in India. In the initial years,
its operation were restricted only to collection and distribution of milk.
But, over the years it has gained a reasonable market share by offering a
diverse range of diary based products including fresh milk, flavoured
yogurt, ice creams, butter milk, cheese, ghee etc. In order to raise the
capital finance its expansion plans, Raju diary Ltd. has decided to
approach capital market through a mix of offer for sale of 4 crore shares
and a public issue of 2 crores shares.
In context of the above case:

(A) Name and explain the segment of capital being approached
by the company
(B) Identify the methods of floatation used by the company to
raise the required capital. Give one difference between them.
23 Ganesh Ltd. is a highly reputed company. Different functions are 3

performed by different individuals in this company, who are bound
together in a hierarchy of relationships. Every individual in the
hierarchy is responsible for successful completion of a particular task.
Mr. Sagar responsible for the welfare and survival of the organisation.
He formulates overall organization goals and strategies for their
achievement. Mr. Bharat ensures that quality of output is maintained,
wastage of materials is minimized and safety standards are
maintained. Mr. Nagar assigns necessary duties and responsibilities to
the personnel and motivates them to achieve desired objects.
At what levels of management are Mr. Sagar, Mr. Bharat and Mr. Nagar
working in Ganesh Ltd.? Justify your answer.
OR
Unique Ltd. is engaged in manufacturing electrical appliances. The

company has been facing a lot of problems for the last few months
because of chaos between two departments’ i.e, Production department
and Sales department. The sales department blames production
department for delayed production. However, the production
department blames sales department for poor sales. The force that
integrates the two departments is missing.
Identify the missing force in the above case and list its two
characteristics.
24 Mr. Anil has been appointed by Suntech Ltd to ensure that the 3
performance of employees is going as per the plans made. In the report
which he submitted to the management, he mentioned that carriage
charges had risen by 8 % however labour absenteeism had increased
from the previous year from 5 % to 15 %. He felt that this increase in
absenteeism required immediate action of management on priority
basis.
a) Identify the step of one of the management functions referred

above.
b) Identify the concept due to which increase in absenteeism
required immediate action of management.
25 Prateek is working in a multinational company in Noida. He was running 4

a temperature for the last many days. When his blood was tested, he
was found to be positive for Malaria and admitted in a hospital and
blood transfusion was advised by the doctors as his condition was very
serious. One of his colleagues sent text message to his superior Mr. B
Chatterjee. Mr. Chatterjee sent text message to the employees to
donate blood for the Prateek. When the company’s General Manager
knew about it, he ordered for fumigation in the company premises and
cleaning the surroundings.
A) From the above paragraph, quote the lines that indicate

formal and informal communications.
B) State any two features of Informal communication.
C) Identify any two values that are being communicated to the
society in the above case.
26 State any four reliefs available to a consumer if he/she complains and 4

the consumer court is satisfied about the genuineness of the complaint.
OR
Explain the following:
1. Right to be heard
2. Right to seek redressal
27 4
Saraha Ltd is a company manufacturing cotton yarn. It has been
consistently earning good profit for many years. This year too, it has
been able to generate enough profits. There is availability of enough
cash in the company and good prospectus for growth in future. It is a
well managed organization and believes in quality, equal employment
opportunities and good remuneration practices. It has many
shareholders who prefer to receive a regular income from their
investments. It has taken a loan of Rs 40 Lakhs from IDBI and is bound by
certain restrictions on the payment of dividend according to the terms of
loan agreement. The above discussions about the company lead to
various factors which decide how much of the profits should be retained
and how much has to be distributed by the company.
Quoting lines from the above discussion identify and explain any four
such factors.
28 4
Mr. Vaibhav Garg holds the designation of finance manager in “Jai Shree
Limited”. Last year performance of his department was as per
expectation. Currently, he is preparing financial blue print of the next
five years. To Begin with he tired to forecast the sales in the next five
years. It is so because it is the sales on which depends the need for the
fixed and working capital. Thus an estimate was made with regard to
both these items. Similarly he collected data in respect of possible profits
in the coming years. In this way one can know how much of capital will
be available from within the business. The rest of the funds will be
arranged from outside the business. He is also thinking about the sources
of finance to be adopted outside the business.
1) Identify the concept referred to in the above paragraph.

2) Write any three points of importance of the financial concept, so
identified.
29 Sarang Gupta is the MD of Dunlop Ltd .The Company had established a 4

good name for it and had been doing well. It was known for timely
completion of orders. The production manager, Ms Kiran was efficiently
handling the processing of order and had a team of fourteen motivated
employees working under her. Unfortunately Ms Kiran met with an
accident. Sarang Gupta knew that in the absence of MsKiran, the
company may not be able to meet the deadlines and it will lead to
customer dissatisfaction, business loss and goodwill. So he had meeting
with the employees in which accurate and speedy processing or orders
was planned. Everybody agreed to work as team because the behavior of
Sarang Gupta was positive towards the employees of the organisation.
Hence everyone put extra effort and the targets were met time. Not only
this, Sarang visited Ms.Kiran and advised her to take sufficient rest.
a) Identify and explain the leadership style of Sarang Gupta in

detail.
OR
1. Smita had been working as an assistant manager with Jhonson

Enterprises for the last ten years. She was very popular amongst
her colleagues because of her commitment and dedication
towards the work. When the manager senior to her retired, all
her colleagues thought that now smitha would be promoted. But
everyone’s surprise, the vacant post was filled by an outsider,
Mrs Rita. Smita felt demoralized and her performance started
declining.
She would absent herself often and could not meet her targets.
Mrs Rita was a good leader, who not only instruct her
subordinates but also guide and inspire them. She noticed
Smitha’s behavior and felt that her performance could be
improved. She started involving Smita in decision making issues
related to the organization and made her part of high level of
joint management committee. Smita was now punctual in office
and her performance started improving.
a) Identify the function of management being performed by
Rita.
b) Name the element of the above function of management
which helped Rita to improve Smita’s behaviour.
c) State any two features of the element identified in (b) above.
30 What is the importance of staffing function in today’s environment? 4
31 The sales manager of Sell Well Ltd. Visited a hospital to sell his 6
company’s products. The purchase manager of the hospital was keen to
purchase the products in fact for all the branches of his hospital across
India but he asked the sales manager to give 30% discount. Though the
manager knew it was a big order and company would be able to make
profits even after offering 30% discount but he could not offer prices
better than the price he had been given by the sales director. He tried to
contact the director but he was unavailable. As a result the order could
not be finalized.
Identify and explain the limitations of planning the sales manager had to
face while discussing order with the prospective customer.
32 Identify and explain the promotional tool of marketing mix which plays a 6
persuasive, service and informative role and thereby links a business firm
to its customers. Also explain by giving any five reasons how this tool
helps in increasing the sales of businessmen.
OR
Name the element of marketing mix in which a set of firms and

individuals creates possession, place and time utility and helps in market
offering. Also explain any five important functions performed by this
element.
33
1. Rajvir works as a plant superintendent in a carpet making factory. In 6
order to complete the export orders on time, the production manager
asks him to make the workers work over time whereas the finance
manager is strictly against this practice because it will increase the cost
of production. Moreover, Rajveer feels that since the company is
manufacturing handmade carpets as well as machine made carpets there
is lot of overlapping of activities. Therefore, ther should be two separate
divisions for both of them wherein each division should have its own in
charge, plans and execution resources.
a. Identify and explain the principle of management which is being
violated.
b. Also identify the principle of management that Rajveer feels
should be implemented in the factory
c. Give any two differences between the principle of management as
identified in part (a) and part (b) respectively.
OR
2. th
Davinder is a class 12 commerce student in a reputed school in Punjab.
Satinder and his elder brother who is doing his Masters in Hospital
Administration from Delhi after completing his B.Sc course. During
vacations when Satinder comes home, Davinder shows him the business
studies project that he is preparing on the topic “Principles of
management”. Satinder tells him that these principles are also a part of
MBA course curriculum at the beginner’s level as they form the core of
management in practice. But he finds these principles are different from
those of pure science.
a. Outline the concept of principles of management
b. Why does Satinder find the principles of management different
from those of pure science?
c. Why do the principles of management form the core of
management in practice? Explain by giving any two points
highlighting the importance of principles of management.
34 Bhuvan and Co. are running a shoe manufacturing company successfully. 6
So they planned to expand their business activities by adding more line
of products, i.e, leather bags, belts, and garments. Which type of
structure would you recommend after expansion and why?
SAMPLE PAPER SET-3
TIME: 3 HOURS MM:80
General instructions:
1. This question paper contains 34 questions.
3. Answer should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
7. Attempt all parts of the questions together.
1 Grouping of activities on the basis of functions is a part of 1

(a) Decentralised organisation (b) Divisional organisation
(c) Functional organisation (d) Centralised organisation
2 The Reserve Bank of India reduces CRR (Cash Reserve Ratio) by 0.5% to 1
control recession. This is related to which dimension of Business
Environment
(a) Political Environment (b) Economic Environment
(c) Social Environment (d) Legal Environment
3 The process by which a manager integrates and synchronises the activities 1

of different department is called
(a) Management (b) Controlling
(c) Planning (d) Coordination
4 All the forces of Business Environment are_______________ 1

(a) Relativity (b) Inter related
(c) Uncertain (d) None of the above
5 Management is a process because 1

(a) It involves series of steps (b) It leads to systematic working
(c) It involves one single activity (d) None of the above
6 The forces in Business Environment that effect all the business houses are known 1
as
(a) General (b) Specific
(c) Particular (d) Influential
7 With the introduction of mineral water bottle in India, Bisleri was able to capture 1
the big market share in India. Which importance of Business Environment is
highlighted here:
(a) Helps in Policy Making
(b) Identifying threat and getting warning signals
(c) Helps in tapping resources
Help to identify opportunities and getting first mover advantage
8 In order to enter into profession one has to acquire an educational degree by 1
clearing specified examination conducted by registered institutes. Which feature
of profession is being revealed?
(a) Restricted entry (b) Ethical code of conduct
(c) Professional association (d) Well defined body of knowledge
9 ________________ not only help in keeping a track on the progress of activities 1
but also ensures that activities conform to the standards set in advance so that
organisational goals are achieved.
(a) Planning
(b) Organising
(c) Controlling
Directing
10 Controlling function of an organisation is _________________ 1
(a) Forward looking
(b) Backward looking
(c) Forward as well as backward looking
None of the above
11 _____________ is a process by which the manager brings order out of chaos, 1
removes conflict among people over work or responsibility sharing and creates
an environment suitable for teamwork.
(a) Planning
(b) Controlling
(c) Organising
(d)Directing
12 A bottle of hair oil is an example of 1
(d)Sales promotion
13 The firm’s ability to borrow at a lower rate increases its capacity to employ 1
higher debt. The factor affecting the choice of capital structure refers to is :-
a. Floatation cast
b. Cost of debt
c. Cost of Equity
d. .Control
14 ……………………. Is a number assigned to each transaction by the stock 1
exchange and is printed on the contract note.
a. Client code no.
b. Unique order no.
c. Permanent account no.
d. Depository participant no.
15 One of the important decision areas under the marketing function of 1
…………………is managing inventory.
a. Branding
b. Pricing
c. Promotion
d. Physical Distribution
16 Which of the following sentence is incorrect? 1
a. Stock Exchange provides liquidity to newly issued securities.
b. Process of holding shares in electronic form is known as
Dematerialization
c. SEBI performs the regulatory function of controlling insider trading and
imposing penalties for such practices.
d. Capital markets consists of commercial banks, development banks and
stock exchanges
17 Apart from consumer satisfaction which concept pays more attention to ethical 1
and ecological aspects of marketing?
a. Selling Concept
b. Marketing Concept
c. Production Concept
d. societal Marketing concept
18 ………………… is a mixture of tangible and intangible attributes, which are 1

capable of being exchange for a value, with ability to satisfy customer needs.
a. Product
b. Market offering
c. Physical distribution
d. Value
19 Which of the statement about advertisement is incorrect? 1
a. It is personal form of communication
b. It is a paid form of communication
c. It is a mass selling technique
d. .It is inflexible as the message cannot be adjusted to the needs of the
buyer
20 Name the process which helps in determining the objectives, polices, procedures 1
programs and budget to deal with the financial activities of the enterprise.
a. Financial Management
b. Financial planning
c. Capital Structure
d. Trading on Equity
21 Vijay was working in ‘Apex Ltd’, a company manufacturing air purifiers. He 3
found that the profits had started declining from the last six months. Profit has an
implication for the survival of the firm, so he analyzed the business environment
to find out the reasons for this decline.
(a) Identify the level of management at which Vijay was working.
(b) State two other functions being performed by Vijay.
22 Based on “Performance Appraisal Report (2022),the HR manager of ‘Gamman 3
Ltd.’ Adopted the following ways of training for improving the quality of output
and providing more job satisfaction to the employees:
(i) Mr. Ganesh was in the company so that he could practice the
theoretical knowledge acquired by him from his college. (ii) Mr. Rahul
was provided a dummy model of machinery to do practice on it.
(iii) Mr. Shekhar was asked to work with an expert for specific period of time so
that he learns by observation.
Identify the technique of training discussed in above cases (i ,ii, iii).
23 Rudrakshi Ltd. Is engaged in manufacturing high end luxury pens. The target 3
production is 700 units daily. The company had been successfully attaining this
target until three months ago. Over the last few month,it has been observed that
daily productions varies between 600-650 units.
Discuss the steps involved in the process of an important function discussed
above.
OR
State any three points of importance of controlling.
24 State the functions of Stock Exchange. 3

OR
Differentiate between Money market and Capital Market on the basis of Return,
liquidity and Risk
25 Teja Ltd. received 22,495 applications for the post of fifty supervisors. 4
Preliminary, screening was done and 3,545 applications were filtered. Various
steps of selection process were taken and finally fifty candidate as supervisor
were selected. They were directly posted to their respective posts. After one-
month performance appraisal of these candidates conducted. It was found that
out of 50, eight were not able to perform as per standards as they were facing
practical problems while handling machines.
(i) In your opinion, what should be done to improve the performance of these
eight supervisors.
(ii) How an organisation can be benefited by improving the skill level of
employees.
26 Pramod was supervisor at a ‘Annapurna Aata’ factory. The factory was 4
producing 200 quintals of aata every day. His job was to make sure that the work
went on smoothly and there was no interruption in production. He was good
leader who would give orders only after consulting his subordinates and work
out the policies with the acceptance of the group.
Identify and describe the leadership style being adopted by Pramod.
Write two benefits of the leadership style being adopted by Pramod.
OR
Rahim was working in enterprise on daily wages basis. It was difficult for him to
fulfill the basic needs of his family. His daughter fell ill. He had no money for his
daughter’s treatment. To meet the expenses of her treatment, he participated in a
cycle race and won the prize money. The cycle company offered him a
permanent pensionable job, which he happily accepted.
(a) Identify the needs of Rahim that are satisfied by the offer of cycle
company.
(b) Also, explain other needs of Rahim followed by above that are still to be
satisfied.
27 A Public transport corporation has hired 1000 buses for the different routes for 4
the passengers of metropolitan city. Most of the 3000 crewmen of these buses
have been found to be unsatisfactorily dealing with public and daily customers.
They seem to be little interested in the job and the job seem to have lost all
meaning to them.
As manager of the public transport company what financial and nonfinancial
incentives will you use to improve the working of crewman in above case? State
any two of each type of incentives
28 Explain any four factors that affect the fixed capital requirement of a company. 4
OR
Explain any four factors that affect the choice of capital structure of a company.
29 Somnath Ltd. is engaged in the business of export of garments. In the past, the 4
performance of the company had been up to the expectations. In line with the
latest technology, the company decided to upgrade its machinery. For this, the
Finance Manager, Dalmia estimated the amount of funds required and the
timings. This will help the company in linking the investment and the financing
decisions on a continuous basis and preparing the financial blueprint of the future
financial activities. Dalmia therefore began with the profit estimates in the
business. For the remaining funds he is trying to find out alternative sources from
outside.
Identify the financial concept discussed in the above para. Also state the
objectives to be achieved by the use of financial concept, so identified.
30 Explain the following rights of consumer protection as per consumer protection 4
act 2019. (a) Right to information (b) Right to be heard.
31 In one of the principles of scientific management, Taylor emphasizes that there 6
should be equal division of work and responsibility between workers and
management and management should work almost side by side with workers
helping them and neither management nor workers should think about their own
benefits:
(i) Identify the principle and explain it.
(ii) State any other two scientific principles and briefly explain them.
OR
Explain the following principles of management in details:-
a. Scalar Chain
b. Esprit De Corps
c. Order
32 After completing the diploma in bakery, Priya started an outlet in food court 6
of a mall, she decided to sell five types of pizzas and low sugar muffins. With
proper planning, she was ready to face the uncertainties and also ensure that
there was no duplication of work. In a very short period of time, her business
got a good name in the market. Identify the points of importance of planning
highlighted in above para.
OR
Explain the first six steps in the process of planning.

33 Samir Gupta started a telecommunication company, ‘Denira Ltd.’ to 6
manufacture economical mobile phones for the Indian rural market with 15
employees. The company did very well in its initial years. As the product was
good and marketed well, the demand of its products went up. To increase
production the company decided to recruit additional employees. Samir Gupta,
who was earlier taking all the decisions for the company had to selectively
disperse the authority. He believed that subordinates are competent, capable
and resourceful and can assume responsibility for effective implementation of
their decisions. This paid off and company was not only able to increase its
production but also expanded its product range.
(a) Identify the concept used by Samir Gupta through which he was able to
steer his company to greater heights.
(b) Also explain any five points of importance of this concept.
34 Various tools of communication are used by the marketers to promote their 6
products.
(a) Why do companies use all tools at the same time?
(b) Name and explain the most commonly used non-personal tool of
promotion which is paid for by the marketer.
(c) Which tool of promotion will primarily be used for the following?
(i) To promote or protect a company’s image or its individual products.
(ii) An existing product meant for mass usage by literate people.
(iii) To introduce a new product to a particular class of people through door-
to-door visits.
(iv) To attract attention of the people by using incentives.
END OF THE PAPER
SAMPLE PAPER SET-4
TIME: 3 HOURS MM:80
Q QUESTION MARKS
NO
1 Classmate a well renowned brand of ITC use eco-friendly and elemental 1
chlorine free paper and no tree from natural forest was cut to make notebook.
Which objective of management is achieved by management?
a) Social objective
b) Personal objective
c) Organizational objective
d) Economical objective
2 Elon Musk completed the $44 billion acquisition of Twitter on October 28. 1
Elon Musk, currently the sole director and CEO of Twitter, has authorised
employees from his other companies to work at the social media giant, a
report in CNBC has said. Which objective of management is achieved by
management?
a) Social objective
b) Personal objective
c) Organizational objective
d) Economical objective
3 Match on the basis of the roles performed by the foreman- 1
Column A Column B
(i) Specify route of production (a) Gang boss
(ii) Keeping machines and tools (b) Repair Boss

ready for operations
(iii) Timely and accurate (c) Inspector
completion of work
(iv) To check quality of work (d) route clerk
(e) speed boss
a) (i)a,(ii)b, (iii)c (iv)d

b) (i)d,(ii)a, (iii)e (iv)c
c) (i)d,(ii)b, (iii)e (iv)c
d) (i)a,(ii)b, (iii)e (iv)c
4 After covid, people around the world are very health conscious which is 1
giving rise to increase demand of Organic products as well as demand of
supplementary/super food"
This statement is associated with which factor of business environment?
a) Political environment
b) Technological environment
c) legal environment
d) Social environment
5 Amazon created online bookstore ’Kindle”, which was immensely successful. 1
By the time other retailers established an online bookstore presence
Which importance of business environment is highlight in above case
a) Helps in tapping resources
b) Help in policy making
c) Improve performance
d) Help to identify opportunity and getting first mover advantage
6 "Sudden many announcement of demonetization, lockdown, by our Prime 1
Minister" is an example of this feature of business environment
a) Relativity
b) Specific and general forces
c) Inter related
d) Uncertain
7 Assertion (A): Coordination leads to specialization. 1
Reason (R): Coordination helps to integrate group efforts. Thus, it ensures
unity of action.
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.
8 Identify the correct sequence of steps, involved in planning 1
i. Selecting the best course of action
ii. Implementation of plan
iii Establishment of objectives
iv Evaluating alternative courses of action
v. Identifying alternative courses of action
vi. develop premises
Choose the correct option:-
a) (i),(vi), (ii), (iii), (iv) and (v)
b) (iii), (vi), (v), (iv), (i) and (ii)
c) (v), (vi), (iv), (iii), (ii) and (i)
d) (iii), (vi), (v), (iv), (ii) and (i)
9 Statement 1: Workload analysis aims to determine the number and type of 1
human resource required to accomplish the goal.
Statement 2: Workforce analysis determines the number of human resource
available.
Choose the correct option from the option 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
10 ‘Planning in the absence of controlling is meaningless’. What does this 1
tatement indicate in respect of both?
a) Only planning is essential
b) Only controlling is essential
c) both are essential
d) Both are unnecessary
11 On this day, the exchange will deliver the share or make payment to the other 1
broker, _____.
a) Pay-in day
b) Pay-out day
c) Transaction day
d) None of the above
12 Match on the basis of the roles performed by the foreman- 1
Column A Column B
(i) Under this method, the (a) Public Issue
company issues a prospectus and
invites the general public to
purchase shares or debentures
(ii) Under this method, Firstly the (b) Offer for Sale
new securities are offered to an
intermediary at a fixed price. They
further resell the same to the
general public
(iii) The Company sell securities (c) Private Placement

to the institutional investors or
brokers
instead of selling them to the
general public.
(iv) When an existing company (d) Right Issue

issues new securities, First of all it
invites its existing shareholders
(e) E-IPO
a) (i)a,(ii)b, (iii)c (iv)d

b) (i)d,(ii)a, (iii)e (iv)c
c) (i)d,(ii)b, (iii)e (iv)c
d) (i)a,(ii)b, (iii)d (iv)c
13 Which of the following takes advantage of the internal trading? 1
a) All shareholders
b) All Debenture holders
c) All the employees
d) People having secret information of the company
14 Most of the companies are using Amazon, Flipkart, Myntra etc. for selling 1
their products directly to customers. As a result the chain of distribution has
decreased.
Identify the element of marketing mix affected by it.
a) Product Mix
b) Price Mix
c) Promotion Mix
d) Place Mix
15 During festive season, many offers are given to customer such as 20% 1
discount; buy one get one free etc. Identify the promotion tool used.
a) Public relation
b) Personal selling
c) Advertisement
d) Sales Promotion
16 Yogesh has decided to set up a factory in Jammu to manufacture hand wash. 1
In order to promote the products, he plans to distribute small sachets of the
hand wash as free samples. For this he has decided to hire a team of salesmen
to sell the product door to door in different parts of the city.
Identify the tools of promotion being taken into consideration by Yogesh.
a) Sales promotion & Personal selling
b) Personal selling & Advertising
c) Sales promotion & Advertising
d) Personal selling & Public relation
17 In a marketing firm, the Financial Manager pays more attention towards an 1
increase of 5% in the marketing cost as compared to a 15% increase in the
postage expenses. Identify the concept being used by the manager.
a) Management by exception
b) Corrective action
c) Critical point control
18 On Eve of Diwali, Pataka Ltd, a fire cracker manufacturing company 1
launched some new products as per demand of market. Although the product
was great demand, but due to appropriate safety warnings for use were not
mentioned on the packets that led to many accidents.
What important product related decision that was not taken into the
consideration by the company?
a) Branding
b) Labeling
c) Packaging
d) Trade mark
19 Disputes of ___________ amount are settled at the level of District Forum as 1
per consumer protection act
2019?
a) Up to rupees one crore
b) Up to rupees 10 crore
c) Up to rupees fifty lakh
d) Up to rupees twenty lakh
20 Radhika has 3000 shares of XYZ ltd. She wants to sell 1500 shares, which 1
market should be approach?
a) Money market
b) Primary market
c) Secondary market
d) All of above
21 Having passed her B.Tech(sci), Ms. Radhika got the job of a finance manager 3
in a company on the basis of her knowledge, experience and proficiency. And
she is doing her job successfully.
a) Is the appointment of Ms. Radhika as a manager valid?
b) Was not it necessary for anyone to do M.B.A or some other course for
this job? Explain your point of view.
22 Ramesh is working under the guidance of Harish, a carpenter. For the last 3
three years to learn the different skills of this job.
Name and explain the method of training Ramesh is Undergoing.
Or
State three advantages of External sources of recruitment.
23 After setting the performance standards the next step in the controlling process 3
is the ‘measurement of actual performance’. Explain this step in the process of
controlling?
Or
Explain two causes of deviations and one corrective action to be taken?
24 Supriya’s grandmother who, was unwell, called her and gave her a gift packet. 3
Supriya opened the packet and saw many crumpled share certificates inside.
Her grandmother told her that they had been left behind by her late
grandfather.
As no trading is now done in physical form, Supriya wants to know the
process by adopting which she is in a position to deal with these certificates.
1. Identify and state the process.
2. Also, give two reasons to Supriya why dealing with shares in physical form
has been stopped.
25 Arena bought is 1 kg custard milk from a shopkeeper. After using this, she felt 4
it is dultrated.to know if it is adulterated, She sent it for a laboratory test. The
laboratory test confirmed that this custard milk is adulterated. Mention 3
reliefs available to Arena if consumer forum get satisfied about the
genuineness of the complaint.
Or
Mohit purchase a book for Rs. 750. Later on, he found that MRP of book was
Rs. 600 only and the shopkeeper had put a sticker of Rs. 750 on the original
MRP. Answer the following question:
(i) Which right of Mohit is violated in the given case?
(ii) Can he recover the extra money?
(iii) Whether any option is available against the bookseller?
26 One of the Financial decision is concerned with selection of fixed assets in 4
which funds will be invested by the business? Identify the decision and
explain any three factors affecting the decision.
or
What do you mean by Working capital? Explain any four factors affecting the
requirement of working capital.
27 What is the Capital structure? Explain any three factors affecting the choice of 4
capital structure?
28 In Many companies, Employees were given to spend up to twenty-percent of 4
their paid work time pursuing personal projects. Identify this incentive and
also State any three such type of incentives.
29 XYZ ltd. wants to hire a staff for its north division. The personnel Department 4
lists out following methods of recruitment
(a) Using naukri.com to search for prospective candidates.
(b) Consider voluntary applications received earlier from various job seekers.
Identify the source of recruitment and explain it.
30 Shivani and Monika were good friends since school times. After completion 4
of MBA from same college both posted in different company.
Shivani is posted in ABC pvt. Ltd as a lower level. The daily sale of the
company is about Rs.50 lakhs only. The managing director has asked her to
focus her attention especially on the speed and quality of production she is
doing it efficiently. Her reputation is as a successful leader. She takes every
decision after discussing it with all the concerned persons. Her subordinates
are happy with her.
Whereas Monika was appointed in XYZ ltd as production manager. She was
introvert by nature as a result she never conducts any meeting with her
subordinate and takes all decision on her own.
Identify the leadership style adopted by Shivani and Monika. And explain.
31 Briefly explain any three the following principles of management given by 6

Henry Fayol:
a. Scalar chain
b Discipline.
c. remuneration
d. Espirit de crops
OR
Briefly explain any three the following techniques of Scientific Management
as given by F.W. Taylor:
a. Motion study
b. functional foremanship
c. Simplification and Standardization of work
d. Differential piece wage
32 Mr. Mukesh is the CEO in XYZ Ltd‘. The company has 70 Stores in the 6
whole of India, and company is earning good profit from all stores. In order to
avail of this situation. Mr. Mukesh had decided to increase the number of
Stores to 200. And the same was announced on social media platform.
(a) Identify the stage of planning process which is being completed by Mr.
Mukesh (b) explain the rest of steps of planning process.
Or
“Every planner is using conjecture about what might happen in future ‘’Name
and briefly explain the logical steps in the process of planning which are
followed by a manager after performing the step highlighted in the above
statement
33 Once XYZ ltd. was a well renowned company and was leading in market but 6
with rapidly changes in business environment and with the entry of MNCs, its
market share is declining. To cope up with the situation, the CEO of XYZ ltd.
started delegating some of his authority to the General Manager, who also felt
himself overburdened and with the approval of CEO disperses some of his
authority to various levels throughout the organization
Identify the concept of management discussed above?
And explain importance of above mentioned concept.
34 What do you mean by the price? Explain any five factors affecting price 6
determination.
ss
Case Studies - (Chapter - 4) Planning
Q. 1. Laxmi Chemicals Ltd., a soap manufacturing company wanted to increase its market share from 30% to 55% in the
long run. A recent report submitted by the Research & Development Department of the company had predicted a growing
trend of herbal and organic products. On the basis of this report the company decided to diversify into new variety of soaps
with natural ingredients having benefits and fragrances of Jasmine, Rose, Lavendear, Mogra, Lemon Grass, Greed Apple,
Strawberry etc. The Unique Selling Proposition (USP) was to promote eco-friendly living the contemporary life style. The
company decided to allocate Rs. 30 crores to achieve the objective.
Identify the type of one of the functions of management mentioned above which will help the company to acquire dominant
position in the market. (1 mark)
Q. 2. Suhasini a home science graduate from a reputed college has recently done a cookery course. She wished to start her
own venture with a goal to provide ‘health food’ at reasonable price. She discussed her idea with her teacher (|mentor)
who encouraged her. After analyzing various options for starting her business venture, they shortlisted the option to sell
ready made and ‘ready to make’ vegetable shakes and sattu milk shakes. Then they both weighed the pros and coris of
both the shortlisted optins.
1. Name the function of management being discussed above and give any one of its characteristics.
2. Also briefly discuss any three limitations the function discussed in the case. (5 marks)
Q. 3. A company is manufacturing garments. The manager wants to increase profits by purchasing new high speed
machines or increasing the sale price or using waste material in manufacturing stuffed toys.
He decided that ‘using waste material’ to increase the profit is the best solution for him.
1. Identify the concept of management involved.

2. Mention the steps involved in the above process by quoting the line from the question.
3. To complete the process of the concept identified in (a), what two next steps does the manager have to take? Explain. (6
marks)
Q. 4. Two year ago, Madhu completed her degree in food technology. She worked for sometime in a company that
manufactured chutneys, pickles and murabbas. She was not happy in the company and decided to have her own organic
food processing unit for the same. She set the objectives and the targets and formulated an action plan to achieve the
same.
One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw materials like
fruits, vegetables, spices, etc. will be purchased on three months credit from farmers cultivating only organic crops. She
also decided to follow the steps required for marketing of the products through her own outlets. She appointed Mohan as
the Production Manager who decided that exact manner in which the production activities were to be carried out. Mohan
also prepared a statement showing the number of workers that will be required in the factory throughout the year. Madhu
informed Mohan about her area wise sales target for different products for the forthcoming quarter. While working on the
production table, a penalty of Rs. 100 per day for not wearing caps, gloves and apron was announced.
Quoting lines from the above paragraph, identify and explain the different types of plans discussed.
Q. 5. During partition, Kundan Lal came to Mumbai from Lahore with a lot of wealth. Keeping in view his innate ability to
visualize and create things, he decided to work as a junior assistant in a film studio. Over a period of time, as he gained
experience and his work was well acclaimed, he decided to set up his own film studio. Initially he was himself looking into
every aspect of the business, but as his work increased manifolds and his own productivity reduced with age, he hired
Jummy as manager. Jimmy being immature in his work started giving bookings for the studio haphazardly. He would never
decide anything in advance or do any kind of forecasting of events. This led to lot of confusions and conflicts. As a result,
the goodwill earned by Kundan Lal over the years began to decline.
1. Identify and explain the function of management which Jimmy failed to perform by quoting lines form the paragraph.
2. Describe briefly any two features of the function of management as identified in part (a).
Q. 6. After completing a diploma in Bakery and Patisserie, Payal sets up a small outlet at Goa Airport to provide a healthy
food option to the travellers. To begin with, she has decided to sell five types of patties, three type of pizzas and low sugar
muffins in four flavours. Thus, by deviding in advance what to do and how to do, she is able to reduce the risk of uncertainty
and avoid overlapping and wasteful activities. But sometimes her planning does not work due to some unavoidable
circumstances like cancellation of flights due to bad weather conditions, government alert etc. which adversely affects her
clientele.
1. Identify and explain the points highlighting the importance of planning mentioned in the above paragraph.
2. Describe briefly the limitation of planning which adversely affects Payal’s business.
Q. 7. Rahul, a worker, is given a target of assembling two computers per day. Due to his habit of doing things differently,
an idea struck him which would not only reduce the assembling time of computers but would also reduce the cost of
production of the computers. Rahul’s supervisor instead of appreciating him, ordered him to complete the work as per the
methods and techniques decided earlier as nothing could be changed at that stage.
The above para describes one of the limitation of planning function of management. Name that limitation. (1 mark)
Q. 8. ABC Ltd. has a plan of increasing profits by 20%. It has devoted a lot of time and money to this plan. But the
competition starts increasing, so it could not change its plan to b eat its competitors because huge amount of money had
already been devoted to the pre-decided plan. It caused losses to the company.
Explain any two limitations of planning highlighted in the above case. Also, quote the lines from it. (4 marks)
Q. 9. In ‘Chak De India’ movie, Shahrukh Khan becomes the coach of the girls’ hockey team. He knows that he has to prepare
the girls for the international hockey matches and bring the world cup after winning. For this he prepares a long-team plan
and thinks the ways how to bet the competitors. He coaches the girls to play in different ways like defensive, offensive,
etc. at the outset of a match he explains who will open the match, and how the ball will be passed by one player to another
step by step.
Identify four types of plan that are highlighted in the above case, quoting the lines from it. (4 marks)
Q. 10. Flipkart is an e-commerce company founded in the year 2007 by Sachin Bansal and Binny Bansal. The company is
registered in Singapore, but has its headquarters in Bangaluru, India. The company seeks to increase traffic (more clicks on
their products) and boost sales and revenue through integration of Mobile Apps, Display, Pay Per Click and search Engine
Optimization. In order to dispel the feat of people related to shopping online, Flipkart was the first company to implement
to popular ‘Cash on Delivery’ facility. All the products sold by the company under a particular category may have different
return/replacement period. Flipkart allows multiple payment options such as cash on delivery, credit or debit card
transactions, net banking, e-gift voucher and card swipe on delivery. The company operates both ways when an order is
received. The products for which it holds inventory are dispatched by it directly. For the products they do not store in
inventory, they just send the order received by them to the supplier who ships it. The company plans to spend about Rs.
75 crores on e-Commerce advertising in the year 2016. Flipkart reserves the right to terminate your membership and/or
refuse to provide you with access to the website if it is brought to Flipkart’s notice or if it iis discovered that you are under
the age of 18 years. This is because as per the Indian contract Act, 1872, the minors, un-discharged insolvents, etc. are not
eligible to use the website.
In context of the above case, identify and explain the different types of plans being used by Flipkart by quoting lines the
paragraph.
Q. 11. An electronic company 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 price models for mass consumers who are price
sensitive. For quality conscious consumers, company is introducing new model LED TV and DVD players with added features
and new technological advancements. For this, the company raises extra funds Rs. 5 crore form banks.
Name the type of plan the company is preparing. State the steps which the company follows to implement this plan quoting
the line from the above para. (4 marks)
Q. 12. Arush joins as a sales manager of a company dealing in naturotherapy produces. Being proficient in his work, he
knew that without good planning he will not be able to organise, direct, control or perform any of the other managerial
functions efficiently and effectively. Only on the basis of sales forecasting, he would assist in the preparation of the annual
plans for its production and sales. Besides, he will have to prepare sales plans regularly on weekly, monthly, quarterly and
half yearly basis. While preparing the sales forecasts, he undertakes intellectual thinking involving foresight, visualization
and issued judgement rather than wishful thinking or guess work. Most importantly, all these planning activities will be
meaningful only if they will coincide with the purpose for which the business is being carried out.
In context of the above case, identify the various features of planning highlighted in the above paragraph by quoting lines
from it.
Q. 13. Zyesha Ltd. is a company which manufactures leather bags. The CEO of the company wants to increase their sales
and earn more profits. The consulted with a management consultant who suggested the top management of the company
tow rok hard in thinking about the future in making business prediction and achieve the targets since the business
environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry
of new competitors in the market.
1. Identify and state the concept of management discussed in the para.

2. State the characteristic feature of business environment highlighted in the above para. (3 marks)
Q. 14. Lira Ltd. is a company manufacturing designer socks. While making its plan, the company takes into consideration
the business environment. It constantly adapt itself to changes in environment by making changes in its plan. However, it
becomes difficult for the managers of the company to accurately foresee future trends in the environment. Competition in
the market upsets its financial plans; then sales targets have to be revise3d and, accordingly cash budgets also need to be
modified since they are based on sales figures.
1. What characteristic features of business environment are highlighted in the above lines? State any two.
2. State and explain the limitation of planning highlighted in the above lines.
3. Identify any two types of plan mentioned in the above pare by quoting the lines from it. (6 marks)
Q. 15. Pan Masala and Sons is a manufacturer of tobacco products. It decided to increase profits by at least 20% in the next
quarter. It has many options:
1. To increase the working hours of labourers without additional payment.

2. To employ children from the local community.
3. To sell its products outside the schools and colleges.
It opted the (ii) and (iii) options to achieve the target.
1. Identify the function of management described in the above para.
2. State the steps of the process involved in the function of management identified in (a) quoting the lines from the above
para.
3. State any two values neglected by the organisation (6 marks)
Q. 16. A reputed car manufacturing company in NCR is facing the problem of decline in its market share due to its internal
mismanagement. Therefore it has planned to increase its production capacity at its Gurgaon plant by manufacturing low
price eco-friendly cars for price sensitive consumers and introducing new models with added features for quality conscious
consumers. For this the company issues shares to the public and raises Rs. 150 crore.
The company purchases more machinery required to increase production.
1. Identify the type of plan the company is preparing.

2. State the steps involved in this plan quoting the lines from the above case.
3. State any one value which the company wants to communicate to the society.(5 marks)
Q. 17. ‘Agile Ltd.’ is a well-known automobile manufacturing company in India. The company plans to increase the sale of
its sedan cars by 20% in the next quarter. In order to achieve the desired target, the marketing team of the company
considers the impact of policy of the government towards diesel vehicles and the level of competition in this segment of
cars. They explore the various available option like offering more discount to dealers and customers, providing more
customer friendly finance options, lucky draws on test drives, increasing advertising, offering more of free accessories on
the purchase of the car, etc. a thorough analysis of the various available options is done keeping in view the relative viability
of each option. The company decides to pursue the option of offering more discount to dealers and customers in order to
boost the sale of sedan cars. In order to implement the plan,, they determine the various discount packages and
communicate the same to their product dealers. To make the prospective consumers aware about the new available
benefits, advertisements are made through various sources of print and electronic media. The market analysts of the
company keep a close watch on the revenue from the sedan cars to study the effect of new initiatives by the company to
promote its sales.
1. Name the function of management described in the above paragraph.

2. Identify and explain the various steps involved in process the function of management as identified in part (a) by quoting
lines from the paragraph.
Q. 18. Palvinder, is working as a supervisor in Alpha Ltd. To achieve the target he wants to try a new method and different
way of allocating the work. His superior did not permit him and forced him to do the work strictly as per the plan.
(i) Name the limitation of planning indicated in above case.
(ii) Name the value overlook by Palvinder’s superior.
Q. 19. The management of ABC Ltd. set up the target of selling 10,000 units per week and made all their plans based on this
target. But due to change in technology adapted by competitors which reduced their cost, the ABC Ltd. could not achieve
their target.
(i) Identify the limitation of planning discussed in the above para.
(ii) State any other two limitations.
Q. 20. Alpha Ltd. spent a lot of money to hire specialized people for framing their plans and collecting important facts from
environment. The company cut done their cost by cancelling the employee’s trip for recreation.
(i) Name the limitation of planning mentioned in above para.
(ii) Name the value overlook by management.
Q. 21. ABC Ltd. announced a plan nobody would smoke in the organization premises and they further added that certain
penalty will be imposed on employees, overlooking this.
(i) Name the type of plan related to above para.
(ii) Name the feature of that plan.
(iii) Name the values emphasized by the company.
Q. 22. Alpha Ltd. has a plan of increasing profit by 20%. The company spent lot of time and money to frame and implement
this plan. The competition start increasing, so it could not change its plan to beat its competitors because huge amount of
money is already spent. State any two limitations of planning.
Q. 23. ‘Natural disaster like floods in Gujarat has been responsible for failure of production and sales plans of Jindal Textile
Industry.’ Which limitations of planning is highlighted in the given statement? State any three such limitations. (3)
ANSWERS
Ans 1. Strategy
Ans 2.
1. Planning.
Characteristic of planning
Planning focuses on achieving objectives
1. Limitation of planning
1. Planning leads to rigidity:

2. Planning reduces creativity:
3. Planning is a time-consuming process:
Ans 3.
1. The concept of management involved is PLANNING.

2. Steps involved are:
● Setting objectives: increasing profits

● Developing planning premises: making certain assumptions about future.
● Identifying alternative courses of action:
● Purchasing new high speed machines, or

● Increasing the sale price, or
● Using waste material in manufacturing stuffed toys
● Evaluating alternatives and selecting an alternative:
1. Further steps to complete the process of planning:
● Formulating derivate plans:

● Implementing the plan and follow-up-action:
Ans 4.
The different types of plan discussed above are listed below:
● Objectives:
“One of her objectives was to earn 10% profit on the amount invested in the first year.”
● Policy:
“It was decided that the raw materials like fruits, vegetables, spices, etc. will be purchased on three months credit from
farmers cultivating only organic crops.”
● Method:
“The exact manner in which the production activities are to be carried out.”
● Procedure:
“She also decided to follow the steps required for marketing of the products through her own outlets.”
● Rule:
“While working on the production Table, a penalty of Rs. 100 per day for not wearing caps, gloves and aprons was announced.”
Ans 5.
1. Planning is the function of management which Jimmy failed to perform.
Planning is deciding in advance what to do, how to do, when to do and who has to do it.It is one of the basic managerial
functions.Thus, it involves setting objectives and developing an appropriate course of action to achieve those objectives.
1. The two features of the planning function of management are as follows:
● Planning is pervasive:
● Planning involves decision-making:
Ans 6.
1. The paints highlighting the importance of planning mentioned in the above paragraph are described below:
● Reduces the risk of uncertainty:
● Avoiding overlapping and wasteful activities:
2. The limitation of planning which adversely affects Payal’s business is:
3. Planning may not work in a dynamic environment:
Ans 7. Planning reduces creativity.

Ans 8.
1. ‘ABC Ltd. has devoted a lot of time and money to its plan.’
Planning is a time consuming process.It also involves huge costs.

1. ‘The competition starts increasing, so it could not change its plan to beat its competitors because huge amount of money had
already been devoted to the pre-decided plan.’
Planning leads to rigidity. Following a pre-decided plan, when circumstances change, may not turn out to be in the
organization’s interest.
Ans 9.
1. Objective ‘…bring the world cup after winning.’

2. Strategy ‘For this he prepares long-term plan and thinks the ways how to beat the competitors.’
3. Method ‘He coaches the girls to play in different ways like defensive, offensive, etc.’
4. Procedure ‘At the outset of a match he explains who will open the match, and how the ball will be passed by one
player to another step by step.’
Ans 10. The different types of plans being used by Flipkart are listed below:
● Objectives:
“The company seeks to increase traffic (more clicks on their products) and boost sales and revenue through integration of
Mobiles Apps, Display, Pay Per Click and Search engine Optimization.”
● Strategy:
“In order to dispel to fear of people related to shopping online, Flipkart was the first company to implement the popular ‘Cash
On Delivery’ facility.”
● Policy:
“All the products sold by the company under a particular category may have different return/replacement period.”
● Method:
“Flapkart allows multiple payment options such as cash on delivery, credit or debit card transactions, net banking, e-gift
voucher and card swipe on delivery.”
● Procedure:
“The company operataes both ways when an order is received.The products for which it holds inventory are dispatched by it
directly.For the products they do not store in inventory, they just send the order received by them to the supplier who ships
it.”
● Budget:
“The company plans to spend about Rs. 75 crores on e-Commerce advertising in the year 2016.
● Rule:
Flipkart reserves the right to terminate your membership and/or refuse to provide you with access to the Website if it is
brought to Flipkart’s notice or if it is discovered that you are under the age of 18 years.This is because as per the Indian
Contract Act, 1872, the minors, un-discharged insolvents etc. are not eligible to use the Website.”
Ans 11. The type of plan needed to be prepared under this situation is ‘Strategy’.
Steps involved in preparing this plan are:
(i) Determining long-term objectives:
(ii) Adopting a particular course of action:
(iii) Allocating resources necessary to achieve the objectives:
Ans 12. The features of planning highlighted in the above paragraph are explained below:
1. Planning is a primary function: “… without good planning he will not be able to organise, direct, control or perform any of the
other managerial functions efficiently and effectively.”
2. Planning is futuristic: “Only on the basis of sales forecasting, he would assist in the preparation of the annual plans for its
production and sales.”
3. Planning is continuous: “Besides, he will have to prepare sales plans regularly on weekly, monthly, quarterly and half yearly
basis.”
4. Planning is a mental exercise: “While p repairing the sales forecasts he undertakes intellectual thinking involving foresight,
visualization and issued judgment rather than wishful thinking or guess work.”
5. Planning focuses on achieving objectives: “Most importantly, all these planning activities will be meaningful only if they will
coincide with the purpose for which the business is being carried out.”
Ans 13.
1. Planning
It involves setting objectives and developing appropriate course of action to achieve these objectives. Dreams (e.g. increase
sales, earn more profits, etc.) can be turned into reality only if business managers think in advance on what to do and how to
do it.
1. Business environment is dynamic as it keeps on changing.
Ans 14.
1. (i) Business environment is dynamic as it keeps on changing.
(ii) Business environment is uncertain as it is difficult for the managers to accurately foresee future trends in the environment.
2. Planning may not work in a dynamic environment.
The organisation has to constantly adapt itself to changes in environment by making changes in its plans.However, since
planning cannot foresee everything, there may be obstacles to effective planning.
3. (i) Strategy – ‘while making its plan, the company takes into consideration the business environment.’
(ii) Budget – ‘Competition in the market upsets its financial plans; then sales targets have to be revised and accordingly cash
budgets also need to be modified since they are based on sales figures.”
Ans 15.
1. Planning
2. Steps involved in planning process:
(i) Setting organizational objectives:

(ii) Identifying and evaluating alternative courses of action:
(iii) Selecting the best possible alternatives(s):
1. Values neglected:
● Child labour is banned.

● Bad effect on students’ health
● Moral values.
Ans 16.
1. Strategy
2. Steps involved in preparing a strategy are:
(i) Determining long-term objectives:

(ii) Adopting a particular course of action:
(iii) Allocating resources necessary to achieve the objectives:
1. Value:
● Sensitivity towards environment

● Socially responsible behavior
Ans 17.
1. Planning is the function of management which is being described in the above paragraph.
2. The various steps involved in the planning process are explained below:
1. Setting objectives: “The company plans to increase the sale of its sedan cars by 20% in next quarter.”
2. Developing Premises: “In order to achieve the desired target the marketing team of the company considers the impact of
policy of the government towards diesel vehicles and level of competition in this segment of cars.”
3. Identifying alternative courses of action:“They explore the various available options like offering more discount to dealers and
customers, providing more customer friendly finance options, lucky draws on test drives, increasing advertising, offering more
of free accessories on the purchase of the case, etc.”
4. Evaluating alternative courses: “A thorough analysis of the various available options is done keeping in view the relative
viability of each option.”
5. Selecting an alternative: “The company decides to pursue the option of offering more discount to dealers and customers in
order to boost the sale of sedan car.”
6. Implement the plan: "In order to implement the plan, they determine the various discount packages and communicate the
same to their product dealers.To make the prospective consumers aware about the new available benefits, advertisements
are made through various sources of print and electronic media.”
7. Follow up action: “The market analysts of the company keep a close watch on the revenue from the sedan cars to study the
effect of new initiatives by the company to promote its sales.”
Ans 18.
1. ‘Planning reduces creativity.’

2. Value of motivating and encouraging employee to increase initiative level.
Ans 19.
(i) Planning may not work in dynamic environment.
(ii) Any two limitations: 1. Planning reduces creativity 2. Planning involve huge cost.
Ans 20.
1. Limitation: ‘Planning involves huge cost.’

2. Value overlook: Psychological need of employees.
Ans 21.
(i) ‘Rule’ is the type of plan.
(ii) Rules are very Rigid.
(iii) Values: (a) Respect towards environment
(b) Follow discipline and order.
Ans 22.
(i) Planning involve huge cost.
(ii) Planning is time consuming.
(iii) Planning may not work in dynamic environment.
Ans 23. External limitations of planning
1. Change in government policies (e.g. tax rates, bank rate, etc.) may lead to failure of planning.
2. Changes in the strategies of competitors also lead to failure of planning many tiems.
3. Rapid technological changes may affect planning.
SAMPLE PAPER SET-5
TIME: 3 HOURS MM:80
Q QUESTION MARKS
1 The feature of profession not present in management is __________. 1
2 ________ is a process of learning and growth 1
a) Training
b) Education
c) Development
3 Why is working capital important? 1
(a) To buy land
(b) To buy building
(c) To make payment for routine expenses
(d) To buy machine
4 Trading on equity takes place when ________________. 1
a) ROI < Interest on debt
b) ROI > Interest on debt
c) ROI < ROE
d) ROI > ROE
5 The general management principles were given by ___________. 1
6 A treasury bill is 1
a) An instrument to borrow short term funds
b) An Instrument to borrow long term funds
c) Capital market instrument
7 ‘Providing finance at 0%’ which of the following adopts this method. 1
(a) Advertisement (b) Personal Selling (c) Sales Promotion (d) Publicity
8 Scientific management means ________. 1
9 A company offers a pack of half kg of sugar with purchase of half kg of wheat 1
flour. Identify method of sales promotion.
10 Canara Bank wants to open a new branch of its bank. What is this decision called? 1
11 Which function of management relates to assigning duties, grouping tasks, 1
establishing authority and allocating resources to carry out a plan?
12 Which of the following is not an element of marketing mix? 1
a) Place
b) Price
c) Packaging
d) Promotion
13 Which of the following does not characterise the business environment? 1
(a) Uncertainty (b) Employees (c) Relativity (d) Complexity
14 The third step of planning process is __________ 1
15 __________ is the quality certification mark used in case of food products 1

a) ISI
b) FPO
c) AGMARK
d) HALLMARK
16 “Change in disposable income of people states ______ environment” 1
17 District Commission handle complains when the value of goods and services along 1
with compensation claim does not succeed
a) 10,00,00,000
b) 15,00,00,000
c) 20,00,00,000
d) 1,00,00,000
18 1
Espirit De Corps means _________________
19 Which of the following doesn’t follow a scalar chain? 1

a) Functional Structure
b) Divisional Structure
c) Formal organization
d) Informal Organization
20 Which of the following is not a component of staffing? 1
a) Recruitment
b) Training
c) Advertising
d) Workforce analysis
21 Staffing is a line as well as a staff function. Comment. 3
Or
Explain in brief the merits of internal sources recruitments.
22 “Money market is essentially a market for short-term funds”. In the light of this 3
statement, state any three features of money market.
23 Directing is not required at all in management of organisation. Do you agree? Give 3
two reasons in support of your answer.
24 Science is a systematised body of knowledge that explains certain general truths or 3
the operation of general laws? In the light of this statement, describe whether
management is a science.
Or
Your grandfather has retired as the director of a manufacturing company. At which
level of management was he working? Different type of functions are performed at
this level. State any one function.
25 Nitish went to a shop to purchase a shirt. The shopkeeper offered him three colours 4
of shirts. Nitish asked him to show him the shirt which was on display. The
shopkeeper told him that he could not buy that shirt and would have to choose
from the options provided by him. Out of necessity and lack of time Nitish
purchased a shirt out of the shirts shown by the shopkeeper. He paid him cash and
didn’t take the cash memo. Later, when he wore the shirt at home and was about to
leave, he found one button of the shirt missing. He went to the shop the next day
and asked for replacement. The shopkeeper bluntly denied that the shirt was
purchased from him.
i.Which consumer right of Nitish is violated here?

ii.Which consumer responsibility was not fulfilled by Nitish which led to this
situation?
iii.Can Nitish file complaint against the shopkeeper?
iv.From the point of view of business which type of interest has been overlooked
by the shopkeeper
26 Xylo Ltd. Has the equity share capital of Rs.40,00,000. Last year it declared 4
dividend and the shareholders were able to earn EPS of 0.50. In the current year,
the company got an expansion proposal for which it needed additional Rs.
2,00,000 which it raised through debt at 10%. The EBIT of current year as
Rs.1,00,000. Taxes are at paid the rate of 30%.
Will the shareholders gain or lose during current year? Show your calculations
clearly. Also identify the concept involved.
27 Explain the functions of stock exchange (any four). 4
Or
“To promote orderly and healthy growth of securities market and protection of
investors, SEBI was set up”. With reference to this statement explain the
objectives of SEBI
28 What are the advantages of training to the organisation? 4

29 M/s Beta Ltd. deals in consumer goods. It employs 100 workers and 10 operative 4
managers who give guidance and support to the workers while operating the
machinery. The company has a policy of granting leave as per the requirement of
the workers. Workers 3 H 3 are generally granted leave on festivals and special
occasions. Recently on Puja festival, it received a big order. Workers are keen to
take Puja holidays while management is pressing hard for overtime. This matter
was placed before the Personnel Manager who called the meeting of operative
managers and workers to inform them about the changes in the incentive plan
which states payment of double wages for working overtime and triple wages for
working on holidays. Workers without any pressure voluntarily took limited
holidays and were able to increase their earning by working overtime and on
holidays. During Board of Directors meeting, Personnel Manager was asked to
update the management for achieving higher output, meeting timely supplies
without any confrontation with workers. Personnel Manager replied, “I just used a
carrot with no sticks approach”.
By quoting the lines from above paragraph state and explain any two elements of
directing.
Or
Describe the concept of Authoritative leadership and state its advantages?
30 Gagan is trying to apply a function of management in his department. First he lets 4
his team perform according to their best potential. Then in a meeting he calls ody
and asks his team to check what they have performed. One day it was found that
the total number of units produced were 20 less than the set target. It was decided
that no worker will go home unless and until this gap of 20 units is overcome.
Which function of management is being performed by Gagan and his team?

What is ’20’ in the above case?
At which stage of management do you think the target was set? What is its signi-
ficance now?
31 Aman, Avneesh and Amrish have decided to start a business of manufacturing 6
toys. They identified the following main activities which they have to perform
Purchase of raw materials
Purchase of machinery
Production of toys Arrangement of finance
Sales of toys Identifying the areas where they can sell their toys
Selection of employees
In order to facilitate the work, they thought that four managers should be appointed
to look after (a) production (b) finance (c) marketing (d) personnel.
They also established reporting relationship
Identify the function of management involved in the above mentioned para.
Quote the lines from the above para which help you to identify this function.
State the steps followed in the process of this function of management.
32 “A good understanding of environment by business managers enables them not 6
only to identity and evaluate but also to react to the forces external to their firm.”
In the light of the above statement explain any four points of importance of
understanding business environment by a manager.
Or
The court passed an order that all schools must have water purifiers for the
school children as
i.Society in general is more concerned about quality of life.
ii. Innovative techniques are being developed to manufacture water purifiers at
competitive rates.
iii .Incomes are rising and children at home are also drinking purified water.
iv. The government is also showing positive attitude towards the water purifier
business.
Identify the different dimensions of business environment by quoting from the
above details.
33 Energy drinks India Ltd.’ has scanned a profitable opportunity for marketing of 6
soft drinks with ‘Indian Traditional Flavour’. The company wants to market its
products in India and in neighbouring countries. A Board meeting of the company
was held on 14.12.2015 wherein the marketing manager was asked to give a
presentation to develop this market offering.
For this it was also decided to set-up its manufacturing unit in a village of Bihar.
This will not only help in the development of the village but will also provide
employment to the youth of the village. The marketing manager chooses a
combination of variables to prepare its market offering. He used a set of marketing
tools that firm will use to pursue its marketing objectives in the target market.
i.Name and state the concept of marketing used by the marketing manager for
creating its market offering.
ii.Also, explain briefly the various elements of this concept.
iii.State any two values that the company wants to communicate to the society.
Or
After doing a diploma in entrepreneurship, Farihad started his own confectionary
business. He started doing a lot of hard work and used the recipes taught by his
grandmother in various preparations. He also learnt many recipes from online sites
and television programmes. He decided to keep the price of the products low
initially and also informed his customers about the goodness of the items sold by
them. However, he didn’t mention on the package of each item weather it
contained eggs or not. As a result, vegetarian people became hesitant in buying
things from his shop as they had to verbally inquire from him about the inclusion
of eggs in the preparation of various items.
In the context of the above case:
Name the important aspect related to the marketing of products which has been
ignored by Farihad.
Explain briefly any three functions performed by the aspect as identified in part
(a).
Mention the right of consumer being violated by Farihad
34 Suhasini a home science graduate from a reputed college has recently done a 6
cookery course. She wished to start her own venture with a goal to provide ‘health
food’ at reasonable price. She discussed her idea with her teacher (mentor) who
encouraged her. After analyzing various options for starting her business venture,
they shortlisted the option to sell readymade and ‘ready to make’ vegetable shakes
and sattu milk shakes. Then, they both weighed the pros and cons of both the
shortlisted options. a) Name the function of management being discussed above
and give any one of its characteristics. b) Also briefly discuss any four limitations
of the function discussed in the case.
SAMPLE PAPER SET-6
TIME: 3 HOURS MM:80
Q.No. Questions Marks

1. ________ is the market for short-term funds meant for use for a period of up to 1 1
year.
(a) Capital market (b) Money market
(c) Financial markets (d) None of these.
2. Which of the following is not a characteristic of a good brand name? 1
(a) Distinctive b) In local language
(c) Short and simple (d) Sufficiently versatile.
3. ___________ is known as as the Father of General Management. 1

(a) Henry Fayol (b) F. W. Taylor
(c)Max Weber (d) Abraham Maslow
4. Amazon and Flipkart sell goods through: 1

(a) Direct channel of distribution.
(b) One level channel of distribution.
(c) Two level channel of distribution.
(d) Three level channel of distribution
5. Which marketing management philosophy had a main focus on costumers’ 1
needs and well-being of the society?
(a) Production concept
(b) Sales concept
(d) Societal Marketing concept.
6. Which of the following statement is incorrect? 1

(a) Marketing and selling are two different terms. 1/8
(b) Marketing is a social process.
(c) A consumer purchases a product only if it is perceived to give greater benefit or
value for money
(d) Marketing activities start with the development of a product.
7. Human Resource Department of any organisation has to ensure the adequate number 1
of employees available throughout the organisation. At which level a human
resource manager works?
a) Top-level management
b) Middle-level management
c) All of these
d) Operational management
8. Which principle of management suggests that employees should be treated with 1
justice and kindness.
9. Match the following and select the appropriate option. 1
(i) Setting objectives (a) Assumption about future
(ii) Developing Premises (b) Monitoring the plans
(iii) Evaluating alternatives (c) Increase in sales by 20%
(iv) Follow-up action (d) Weigh the pros and cors
i. (i) - (c), (ii) - (a), (iii) - (d), (iv) - (b)
ii. (i) - (c), (ii) - (a), (iii) - (b), (iv) - (d)
iii. (i) - (d), (ii) - (b), (iii) - (a), (iv) - (c)
iv. (i) - (d), (ii) - (c), (iii) - (a), (iv) - (b)
10. Mr. Raghav, Finance manager of Manav InfraTech Pvt. Ltd., prepared a detailed 1
plan of financial needs of the firm in coming six months and the sources from where
funds will be acquired to meet out these needs as company is planning to open a new
branch in other states of India. Identify the financial concept discussed here:
a) Working capital
b) Business cycle
c) Financial planning
d) Capital structure
11. Mr. X purchased a car for Rs. 15 lakhs but he is not satisfied with the quality and 1
performance of the car. The company of the car did not provide any remedy to him.
Under which authority of Consumer Protection Act, 2019 can he file an appeal?
a) National Commission
b) None of these
c) District Commission
d) State Commission
12. Which of the following is not a feature of controlling? 1
a) The nature and extent of control doesn't remain same at all levels of
2/8
management.
b) Controlling is a continuous process.
c) The nature and extent of control remains same at all levels of
management.
d) Controlling is pervasive
13. The National Stock Exchange of India was recognized as stock exchange in the year: 1
a) 1992
b) 1993
c) 1995
d) 1994
14. The forces relating to scientific improvements and innovations which provide new 1
ways, methods and techniques of producing goods and services and operating a
business is:
(a) Social environment b) Technological environment

(c) Internal environment d) Micro environment
15. Principle of ________ requires good superiors at all levels, clear and fair agreements 1
and judicious application of penalties.
a) Discipline
b) Direction
c) Unity of Command
d) Order
16. A manager applies the existing theoretical knowledge in his own unique manner. 1
This reflects that management is
(a) Universally applicable (b) A Science
C)An Art (d) Pervasive
17. The work performed by Top Level Management is ________. 1

a) Easy
b) Oversee the efforts of workforce
c) Complex and Stressful
d) Concerned with control of operative employees
18. Security Agents Ltd. provides security services. They gave an advertisement in 1
newspaper for hiring males for the post of Security Guard who are reliable and keep
client information confidential. 75 candidates approached them and Security Agents
Ltd. finalized 10 candidates to be selected after conducting required test and
interview. Out of the following, identify the next step to be followed by Security
Agents Ltd.
a) Reference and background check
b) Job offer
c) Selection decision
3/8
d) Medical examination
19. Which amount of the following statements is true? 1
i. Higher competition requires larger stocks to meet urgent orders
from customers which results into requirement of more working
capital.
ii. The companies having growth prospects require lesser amount
of working capital.
iii. If the rate of inflation is high, an organisation is required
to invest less in working capital.
iv. All of the above
a) Option (iv)
b) Option (i)
c) Option (iii)
d) Option (ii)
20. In order to make the Annual Day of the school a successful event, the Headmistress 1
of the school segregated all the activities into task groups each one dealing with a
specific area. For instance, decorations, refreshments, backstage support, etc. Each
group was put under the charge of one teacher. Identify the function of management
performed by the Headmistress by dividing the activities and assigning the duties?
a) Planning
b) Directing
c) Staffing
d) Organising
21. Ramesh is working under the guidance of Harish, a carpenter, for the last three years 3
to learn the different skills of this job. Name and explain the method of training
Ramesh is undergoing Apprenticeship programmes.
22. Sunidhi has started a designer studio in the basement of her residence after 3
completing her masters in fashion designing. She has appointed ten employees to
take care of the various aspects of the work. She interacts regularly with each
employee to tell exactly what is expected of him/her and what he/she needs to do to
be regarded as a good performer. At the same time she allows a free work
environment wherein the employees openly chit chat with each other in order to
fulfil their social and emotional needs. Sometimes, these interactions also lead to
spreading rumours which are not authentic.
a. Name and explain the two types of communication being referred to in the above
paragraph.
b. How does effective communication increases managerial efficiency?
The two types of communication being referred to in the above paragraph are formal
communication and informal communication.
4/8
OR
Aarav was working as a supervisor with ‘Neer Purifier Ltd.’ which was producing
water purifiers. The target of the company was to produce 200 water purifiers every
day. His job was to make sure that work goes on smoothly and there was no
interruption in production. To achieve this, he always gives orders and insists that
they are obeyed. He believes that reward or punishment both can be given depending
upon the performance. Identify and describe the leadership style being adopted by
Aarav.
23. Three groups of employees of ‘Gama Limited' are working at different posts. The 3
first group of employees is responsible for the welfare and survival of the
organisation. In order to discharge its responsibility properly, this group
continuously keeps a watch over the Business Environment. With a view to coping
with the changes going on in the Business Environment, this group immediately
discusses the change to be brought about in the company's plans. The second group
of employees is responsible for maintaining quality and safety standards, and
minimising wastages. The responsibility of the third group of employees is to
explain the policies decided by the top management and developing the feeling of
cooperation among all the departments of the company.
a. Identify the concept of management described in the paragraphs given
above.
b. Identify the three types of concept identified in 6a’ by quoting the
relevant lines.
24. Star Ltd. is in need of finance to expand the business. The finance manager, Sumit, is 3
looking into different sources of funds available. After doing the cost and risk
analysis, he found debt as the best option but as the company has to pay huge
insurance premium for the plant and machinery and lease for the building, the
decision was taken to raise funds through equity. Identify and explain the factor
which affected this decision.
OR
Differentiate between money market and capital market.
25. Few years ago, there were many malpractices and unfair trading practices like price 4
rigging, unofficial premium on new shares etc. Al these had eroded investors'
confidence and multiplied their grievances. To overcome these, Government of India
decided to set up a separate regulatory body for this purpose.
(a) Name the separate body set up by the Government of India.
(b) List its three regulatory functions.
26. "If you try to control everything, you may end up in controlling nothing". Comment. 4
OR
How does control simplify the task of a supervisor?
27. Himesh is working as a supervisor in a company. Due to his hard work, he is 4
5/8
promoted to the post of Production Manager. Now the post of supervisor is vacant
and no one can be transferred or promoted to this post. Name the source of
recruitment the company will use to fill up this post. State any three advantages of
using this source of recruitment.
OR
Distinguish between external and internal sources of recruitment
28. Which process prepares a blue print of an organizations future preparations relating 4
to finance? Give any three reasons why this process is needed?
29. Neha was a regional sales manager in ‘Good Look Garments Ltd. ‘for ten years. On 4
the retirement of the marketing manager, Neha applied for the same post as she was
extremely ambitious and had dedicated all her energies to obtain the post of a
marketing manager. However, the top management of the company decided to fill
this post by selecting a better person from outside the company. Because of this
Neha was heart-broken and her performance declined. When the new marketing
manager joined, one of her major problems was how to motivate and inspire Neha to
her former level of performance.
Suggest any three non-financial incentives that the new marketing manager
may use to motivate Neha.
30. State any four reliefs available to a consumer under the provision of CPA, 1986. 4
31. Ferro Ltd., manufactures scooters, is facing a lot of problem of declining market 6
share due to increased competition from the new and existing players in the market.
Its competitors are introducing low priced model for price sensitive customers and
scooters with added features and technological advancements for quality conscious?
(a) Which type of plan should be formulated by Ferro Ltd.? What can be the
derivative plans?
(b)What can be the limitations of this plan?
(c) How can these limitations be removed?
OR
Amit Sports Ltd. was in the business of manufacturing treadmills and had a
monopoly in the market. The business was doing very well and the company was
consistently able to meet its objective of 20% increase in sales year after year
Encouraged by the good track record, Mr. Akhil, the Managing Director of the
company, kept an ambitious target of 30%o increase in sales for the next year. The
same year, two competitors entered the market and the company could not achieve
its targets. Identify and explain any three limitations of one of the functions of
management because of which the company was not able to meet its targets.
32. Voltage fluctuations have been common and quite high in India. They harm our 6
electrical appliances like televisions, refrigerators, and air conditioners, often
leaving them in a permanently damaged condition. N-Guard Company decided to
manufacture stabilizers for North India where the voltage fluctuation ranges from
220 V to 230 V.
6/8
Once the demand for North India was taken care of, they decided to launch
stabilizers of varying voltages from 90 V 260 V for meeting the requirements
of voltage fluctuations in other regions of India also. Three engineers were
appointed for the South, West and East regions of India, as the voltage was
different in all the three regions. Though all the engineers were appointed to
manufacture stabilizers, the product differed from region to region.
a. Identify the organizational structure of the N-Guard Company.
b. State any two advantages and two limitations of the structure
identified in the above para.
33. Subramanium & Co., an Aggarbatti manufacturing company in Bengaluru, have two 6
offices in the city within 10 km area. It manufactures Aggarbatties under the brand
name ‘Aeroplane’. It is famous for its sandal and rose flavoured Aggarbatties.
Mahesh and Rahul are accountants in each of the office having same qualification
and work on the same post and perform same nature of work. In spite of that,
Mahesh is getting salary of Rs. 20,000 and Rahul is getting Rs. 16,000 per month.
There is no logic behind this difference in salary.
Management is also frustrated when they see that staff relating to production
department is wasting its time in gossiping with sales department and members of
sales team sitting in finance department. People and materials are not in suitable
places.
(a) Mention the Fayol’s principles of management violated in the given company.
Also give one advantage of principles identified in above (a)
(b) Explain the principle of Espirit De Corps.
OR
Briefly explain any three of the following principles of management given by Henry
Fayol:
(i) Unity of command
(ii) Order
(iii) Equity
(vi) Subordination of individual interest to general interest.
34. Advertisement is an important business activity. On the one hand, it makes available 6
to the people information regarding different new and old products and on the other,
it is also a source of living for many persons. Impressed by these traits of
advertisement Tanu, Manu and Sanchit, three students of Class-XII made up their
mind to go ahead with project work on an advertisement. All the three conversed
with the people about advertisement. Each one of them, on the basis of his survey,
concluded as under:
i. Tanu opined that advertisement costs get transferred to
consumers in the form of high prices.
ii. Manu was of the opinion that advertisement showed reality in
a twisted form. iii. Sanchit maintained that advertisement was
turning people from reality to artificiality.
7/8
a. What do the above remarks about advertisement hint at? Clarify it.
b. Identify two values that advertisement presents to society.
8/8
SAMPLE PAPER SET-7
TIME: 3 HOURS MM:80

QUESTION QUESTION MARKS

NO.
1 To find out the potential of learning new job in the candidate, 1
the following test is conducted.
(a) Intelligence Test
(b) Aptitude Test
(c) Trade Test
(d) Personality Test
2 “In an organisation employees are happy and satisfied, there is 1
no chaos and the effect of management is noticeable”. Which
feature of management is highlighted in the given statement:
(a) Dynamic Function
(b) Intangible Force
(c) Group Activity
(d) Continuous Process
3 Span of management refers to 1

(a) Area of responsibilities of a manager
(b) Manager’s accountability
(c ) Number of subordinates who can be effectively
controlled by one manager
4 Bonds are not basically: 1

(a) An instrument to borrow short term funds
(b) An instrument to borrow long term funds
(c) An instrument of capital market
5 Mr. Ram, the operational manager of Reliance Ltd. 1
conducted work study to fix standard time to be taken
by a worker to produce one unit. Identify the step of the
controlling process mentioned here:
(a)Measurement of actual performance
(b) Analysing deviations
(c) Setting performance standard
(d) Comparison of actual performance with
standards
6 "Planning requires application of the mind, foresight, 1

intelligent imagination and sound judgement." Identify
the characteristic of planning highlighted by this
statement:
(a) Planning is a mental exercise
(b) Planning is Pervasive
(c) Planning is continuous
(d) Planning is futuristic
7 ‘Konark Ltd.’ is electric goods manufacturing enterprises 1

situated in Shivpuri, Madhya Pradesh. It is earning very low
revenue in comparison to competing electronic goods
manufacturing enterprise, ‘Nova Ltd.’ situated in Mumbai. Both
Konark’s and Nova’s operations are affected directly by the
investors, customers, competitors and suppliers, which are
unique to their respective locations. In addition to this, individual
forms of this field are affected indirectly by the factors like the
money supply in the economy, composition of the families, the
technological changes, etc. Identify the feature of the concept
discussed in the above paragraph
(a) Totality of external environment
(b) Relativity
(c) Complexity
Sum of external and internal forces
8 In Delegation, we have sharing of authority and 1
responsibility between
(a) Two levels
(b) Multiple level
(c) Department wise
9 1
Recently, Yamini purchased a pack of dog food for her pet. It
was nowhere mentioned on the pack that it had to be mixed in
lukewarm water in order to ensure easy digestion. Therefore,
Yamini kept serving the food to her pet by mixing it in cold
water. As a result, her pet fell ill and had to be hospitalised.
Identify the right of consumers being ignored by the company
marketing the pet food.
a) Right to consumer education
b) Right to information
c) Right to choose
d) Right to be heard
10 Mr. X is working in a toy factory. The management asked him to 1
work overtime so as to produce more in order to meet the
increasing demand in the market. But he was not paid extra
wages for extra time worked by him. Which principle of
management is overlooked?
a. Equity
b. Scalar chain
c. Remuneration of employees
d. Order
11 Lakshay has been given the task of arranging for five-day 1

conference for foreign delegates. In order to smooth functioning
of the event, he has made two people as co-ordinators to take
care of activities related to registration and refreshment.
Identify the function of management being carried out by
Lakshay.
(a) Planning
(b) Staffing
(c) Organising
(d) directing
12 The growing awareness about healthcare has led to an increase in 1

the demand for healthcare products and services in the country.
Identify the feature of business environment being described in
the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
13 Karam limited is offering a travel package for 15 destinations 1

worldwide with a free insurance on the booking for the month of
December, 2019. Identify the features of marketing being
describe in the above lines.
(a) Needs and wants
(b) Creating a market offering
(c) Customer value
(d) Exchange mechanism
14 In order to promote the habit of health and hygiene among 1
weaker sections of the society, Abhyas limited has launched low
cost packs of hand wash. Identify the type of marketing
philosophy being adopted by the company.
(a) Product concept
15 Keeping in view the recent trends of sales regression, sona 1

limited has decided to offer a flat 15% discount on all the
products. Identify the related function of marketing being
described in the given lines.
(b) Branding
(c) Pricing
(d) promotion
16 Which of the following doesn’t follow scalar chain? 1

a) Functional Structure
b) Divisional Structure
c) Formal organization
Informal Organization
17 High Debt Equity Ratio results in: 1
(a) Lower financial risk
(b) Higher degree of operating risk
(c) Higher degree of financial risk
Higher EPS
18 A decision to acquire a new and modern plant to upgrade an old 1
one is:
(a) A financing decision
(b) A working capital decision
(c) An investment decision
A dividend decision
19 Promoting online trading through the registered stock brokers is 1
the _____________ (Regulatory/Protective/Development)
function of SEBI.
20 Who is the Father of Administrative Management? 1
(a) Taylor
(b) Fayol
(c) Both
(d) None of these
21 Ashutosh Goenka was working in ‘Axe Ltd.’, a company 3
manufacturing air purifier. He found that the profits has started
declining from the last six months. Profit has an implication for
the survival of the firm, so he analysed the business environment
to find out the reasons for this decline.
1. Identify the level of management at which Ashutosh

Goenka was working.
2. State two other functions being performed by Ashutosh
Goenka.
22 Resolutions Pvt. Ltd. is a publishing company. Its book on 3

Business Studies for class XII is in great demand. As a result, the
employees in the marketing department are always racing against
time. The employees have to work overtime and on holidays to
cater to the demand.
Managers in the marketing department are under stress as they
have to handle more than two territories. The work stress has led
to dissatisfaction among the employees and managers.
1. Name and explain the step of staffing process which has

not been performed properly.
2. State the next two stages immediately following the step
identified in part ‘a’.
23 Pramod was a supervisor at ‘Annapurna Aata’ factory. The 3

factory was producing 200 quintals of aata every day. His job
was to make sure that the work went on smoothly and there was
no interruption in production. He was a good leader who would
give orders only after consulting his subordinates and work-out
the policies with the acceptance of the group.
Identify and describe the leadership style being adopted by
Pramod.
OR
Alfa Ltd. was dealing in renewable energy services. To get the
business, the team leader and his team used to travel to different
states to give presentations to the clients. As per the policy of the
company, the team leader used to travel by air whereas his team
travelled by road/train. It was not only time-consuming but also
forced the female team members to travel alone at times.
As a result, the subordinates were not acting in a desired manner
to achieve the organisational goals. The CEO of the company
came to know about it. He called the team leader, discussed the
matter with him and decided to change the travel policy of the
company. It was decided that in future, all the members including
the leader would travel together and usefully utilise the travelling
time in discussion about the presentation to be given to the
clients. This made a positive impact and every member of the
team started acting in a manner as desired by the team leader.
State the features of the element of the function of management
used by the CEO
24 Wireworks Ltd. is a company manufacturing different kinds of 3
wires. Despite fierce competition in the industry, it has been able
to maintain stability in its earnings and as a policy, uses 30% of
its profits to distribute dividends. The small investors are very
happy with the company as it has been declaring high and stable
dividend over past five years.
1. State any one reason because of which the company has

been able to declare high dividend by quoting line from the
paragraph.
2. Why do you think small investors are happy with the
company for declaring stable dividend?
OR
Visions Ltd. is a renowned multiplex operator in India. Presently,

it owns 234 screens in 45 properties at 20 locations in the
country. Considering the fact that the there is a growing trend
among the people to spend more of their disposable income on
entertainment, two years back the company had decided to add
more screens to its existing set up and increase facilities to
enhance leisure, food chains etc. It had then floated an initial
public offer of equity shares in order to raise the desired capital.
The issue was fully subscribed and paid. Over the years, the sales
and profits of the company have increased tremendously and it
has been declaring higher dividend and the market price of its
shares has increased manifolds.
Name the different kinds of financial decisions taken by the

company by quoting lines from the paragraph.
25 ‘AS Ltd.’ is a large company engaged in assembling of air- 4

conditioners. Recently the company had conducted the ‘Time’
and ‘Motion’ study and concluded that on an average, a worker
can assemble ten air-conditioners in a day. The target volume of
the company in a day is assembling of 1,000 units of air-
conditioners. The company is providing attractive allowances to
reduce labour turnover and absenteeism. All the workers are
happy. Even then the assembling of air-conditioners per day is
800 units only. To find out the reason, the company compared
actual performance of each worker and observed through CCTV
that some of the workers were busy in gossiping.
1. Identify the function of management discussed above.
2. State the steps in the process of the function identified
which are discussed in the above paragraph.
26 Race Tech Ltd. is one of the top IT companies in India. The 4

company does mass recruitment each year from different
colleges offering fresher level job to the final year students. This
helps in recruiting the brightest and the best available talent in
the educational institutions.
1. Identify the source of external recruitment adopted by the

company.
2. Explain briefly any three advantages of using the external
sources of recruitment.
OR
The workers of Vyam Ltd. are unable to work on new and hi-
tech machines imported by the company to fulfill the increased
demand. Therefore, the workers are seeking extra guidance from
the supervisors.
The supervisor is overburdened with the frequent calls of
workers.
Suggest how the supervisor, by increasing the skills and
knowledge of workers, can make them handle their work
independently?
Also state any three benefits that the workers will derive by the
decision of the supervisor.
27 Explain briefly any four factors that affect the fixed capital 4
requirements of a company.
28 Explain functions of Financial market. 4

29 Explain the remedies available to a customer. 4
30 Describe briefly Maslow’s need hierarchy theory of motivation 4
OR
Explain any four advantages of directing.
31 Radhika was a student of Business Studies of Class XII. Her 6
father was a farmer who grew different varieties of rice and was
well-versed in the various aspects of rice cultivation. He was also
selected by the government for a pilot-project on rice cultivation.
As a project work in Business Studies, she decided to study the
feasibility of marketing good quality rice at a reasonable price.
Her father suggested her to use the Internt to gather customers’
views and opinions. She found that there was a huge demand for
packaged organic rice. She knew that there were no
predetermined specifications in case of rice because of which it
was difficult to achieve uniformity in the output. To differentiate
the product from its competitors, she gave it the name of
‘Malabari Organic Rice’ and classified it into three different
varieties, namely — Popular, Classic and Supreme, based on the
quality. She felt that these names would help her in product
differentiation.
Explain the three functions of marketing with reference to the
above paragraph
32 Aman Chadha started ‘Bulls Eye’ a company for providing cyber 6
security solutions to businesses. Its objective is to prevent, detect
and respond to cyber attacks and protect critical data. He was a
hardworking software engineer and an expert in cyber security.
His reputation grew by leaps and bounds as he was not only a
person of integrity but also did his work with utmost honesty and
sincerity. The business started growing day by day.
He was delighted when he was offered a big project by the
Ministry of Defence. While working on the project, he found that
the volume of work made it impractical for him to handle all the
work by himself. He decided to expand the team. The company
maintained a close liaison with a local engineering college.
During a campus placement, Ishan and Vrinda were appointed to
work for the new project.
He found the new employees capable, enthusiastic and
trustworthy. Aman Chadha was thus, able to focus on objectives
and with the help of Ishan and Vrinda, the project was completed
on time. Not only this Aman Chadha was also able to extend his
area of operations. On the other hand Ishan and Vrinda also got
opportunities to develop and exercise initiative.
1. Identify and briefly explain the concept used by Aman

Chadha in the above case which helped him in focusing on
objectives.
2. Also, state any four points of importance of the concept
identified in (i) above.
33 Flipkart is an e-commerce company founded in the year 2007 by 6

Sachin Bansal and Binny Bansal. The company is registered in
Singapore, but has its headquarters in Bangaluru, India. The
company seeks to increase traffic (more clicks on their products)
and boost sales and revenue through integration of Mobile Apps,
Display, Pay Per Click and Search Engine Optimization. In order
to dispel the fear of people related to shopping online, Flipkart
was the first company to implement the popular ‘Cash on
Delivery’ facility. All the products sold by the company under a
particular category may have different return/replacement period.
Flipkart allows multiple payment options such as cash on
delivery, credit or debit card transactions, net banking, e-gift
voucher and card swipe on delivery. The company operates both
ways when an order is received. The products for which it holds
inventory are dispatched by it directly. For the products they do
not store in inventory, they just send the order received by them
to the supplier who ships it. The company plans to spend about ?
75 crores on e-Commerce advertising in the year 2016. Flipkart
reserves the right to terminate your membership and/or refuse to
provide you with access to the website if it is brought to
Flipkart’s notice or if it is discovered that you are under the age
of 18 years. This is because as per the Indian Contract Act, 1872,
the minors, un-discharged insolvents, etc. are not eligible to use
the website.
In context of the above case, identify and explain the different
types of plans being used by Flipkart by quoting lines from the
paragraph.
OR
‘Agile Ltd.’ is a well-known automobile manufacturing company
in India. The company plans to increase the sale of its sedan cars
by 20% in the next quarter. In order to achieve the desired target,
the marketing team of the company considers the impact of
policy of the government towards diesel vehicles and the level of
competition in this segment of cars. They explore the various
available options like offering more discount to dealers and
customers, providing more customer friendly finance options,
lucky draws on test drives, increasing advertising, offering more
of free accessories on the purchase of the car, etc. A thorough
analysis of the various available options is done keeping in view
the relative viability of each option. The company decides to
pursue the option of offering more discount to dealers and
customers in order to boost the sale of sedan cars. In order to
implement the plan, they determine the various discount
packages and communicate the same to their product dealers. To
make the prospective consumers aware about the new available
benefits, advertisements are made through various sources of
print and electronic media. The market analysts of the company
keep a close watch on the revenue from the sedan cars to study
the effect of new initiatives by the company to promote its sales.
1. Name the function of management described in the above

paragraph.
2. Identify and explain the various steps involved in process
the function of management as identified in part (a) by
quoting lines from the paragraph.
34 Radhika opens a jewelry showroom in Jaipur after completing a 6

course in jewellry designing. She has employed eleven persons
in her showroom. For greater productivity, she divides the work
into small tasks and each employee is trained to perform his/her
specialized job. The sales persons are allowed to close a deal
with a buyer by giving a maximum of 10% discount, whereas the
decision to give any further discount rests with Radhika as the
final authority. In the earlier days of starting of the business, five
of her employees were asked to put in extra hours of work. In
return she had promised to give them a special incentive within a
year. Therefore, after six months when the business was doing
well, she awarded a cash bonus to each of these employees to
honour her commitment. However, when it comes to settling the
conflicts among her employees, she tends to be more biased
towards her female employees.
1. Identify and explain the various principles of management

that are being applied by Radhika by quoting lines from
the paragraph.
2. Identify and explain the principle of management which is
being violated by Radhika by quoting lines from the
paragraph.
3. State any one effect of the violation of the principle of
management by Radhika as identified in part(b) of the
question.
OR
After completing his education, Arun joins his father in their

family business of manufacturing cookware. As a businessman,
his father is rigid in his approach and has fixed ideas about
various issues. He tends to maintain a distance from the factory
workers. However, Arun is more receptive to the needs of the
workers and doesn’t seem to believe in any class- differences. He
believes that the prosperity of their business greatly depends
upon the prosperity of their workers and vice versa. At the same
time, he has a good understanding of the business environment.
Therefore, he introduces a new range of green pans that provide a
healthy cooking surface, as they are manufactured with all
ceramic or silicon coating and are considered safer than the
traditional petroleum based nonstick surfaces which may contain
toxic substances. Although, the new cookware range is highly
priced/, he expects a ready market for it as both the purchasing
power of people and their preference for better quality products
has increased over the years.
1. Identify the nature of management which is being reflected

in the different styles of management in practice adopted
by Arun and his father.
2. Name and explain the related principle of scientific
management.
3. State the related dimensions of business environment.
SAMPLE PAPER SET-8
TIME: 3 HOURS MM:80
words.
Q QUESTIONS M
1. In an Organisation , sales person is asked to clinch a deal with a buyer and is 1
allowed to give 10% discount by the marketing manager .But finance
department tells him not to offer more than 5 % discount . Which principle
of management is overlooked here?
(a) Unity of command (c) Unity of direction
(b) Authority and responsibility (d)Division of work
2. ‘Through the orders and decision of various commissions and agencies at 1
centre , state or local level the Indian Government is playing a very
significant role in balancing the use of human and machine power.’ Identify
the dimension of Business Environment highlighted here.
(a) Legal Environment (c ) Social Environment
(b) Political Environment (d) Economic Environment
3. Which of the following is not a function of stock exchange? 1

(a) Safety of transaction
(b) Pricing of securities
(c) Providing liquidity and marketability to existing securities
(d) Holding securities in electronic form
4. ‘Managers at all the levels need to perform the controlling function to keep 1
a check on the activities in their respective areas of operation.’ Which
feature of controlling is being referred to?
(a) Controlling is all pervasive
(b) Controlling is looking back
(c) Controlling is forward looking
(d) Controlling is a goal-oriented process
5. Using external sources for filling vacant positions: 1
(i) gives a wider choice.
(ii) simplifies the process of selection.
(iii) instils a competitive spirit among the existing employees.
(iv) does not infuse fresh talent in the organisation. Choose the correct
option from the following:
(a) (i) and (ii) (b) (ii) and (iv)
(c) (i), (iii) and (iv) (d) (i) and (iii)
Case Study : Read the following text and answer question no. 17-20 on the 1
basis of the same: Rahul decided to start a desert cooler manufacturing
business. He sets the target of earning 20% profit on sales in the firs year.
He was very much concerned about the future prospects of the business,
which were uncertain. For this, he gathered information from the potential
market and analyzed that the demand for wall-mounted coolers is
1increasing day by day He used this information as the base for future
planning. On the basis of the gathered information, he called a meeting in
the following week to find new methods to achieve the objective.
6. "... gathered information from the potential market and analyzed that the 1
demand for wall-mounted coolers is increasing day by day." Identify the
step involved in the function of management.
(a) Setting Objectives
(b) Developing Premises
(c) Identifying alternative courses of action
(d) Evaluating alternative courses
7. Identify the feature of the function of management highlighted in the 1

above case.
(a)Planning focuses on achieving objectives.
(b) Planning is futuristic.
(c) Planning involves decision
(d) All of these
Case Study 1
The Research & Development department of Healthy Production Lad. has
decided to diversify from manufacturing health drinks to cereals made from
millets. They are well aware of the fact that the company will have to
communicate to the people the benefits of eating millets. For this purpose,
they plan to sponsor various events like marathons and encourage people
to switch to healthy eating through newsletters.
A meeting was held wherein a brainstorming session took place to decide
the name by which the company will sell its products. In the meeting, it was
also decided that the company will spend a lot in advertising, sales
promotion efforts, the ype of packaging, product differentiation, credit
facility and customer services. This will give the company a competitive
freedom in fixing price of its products. The company also decided that its
products will be distributed effectively throughout the country through its
agents, the
wholesalers and retailers.
8. . Identify the promotional tool being discussed above. 1
(a) Advertising (b) Sales Promotion
(c) Public Relations (d) Personal Selling

9. Identify the product related decision the company has to take in the 1
meeting.
(a) Pricing (b) Promotion

(c) Branding (d) Packaging
10. ... the company will spend a lot in advertising, sales promotion efforts, the 1
type of packaging, product differentiation, credit facility and customer
services. This will give the company a competitive freedom in fixing price of
its products." Identify the factor affecting one of the elements of marketing
mix being discussed above.
(a) Product Cost

(b) Extent of competition in the market
(c) The utility and demand
(d) Marketing methods used
11. The directors of Shiv Electronics, an organisation manufacturing T.V 1

components, have asked Shakti ,their Marketing Manager to achieve a
target sale of ₹5,00,000 per day . Shakti has delegated the task to Manav his
Deputy Sales Manager working under him .Manav could not achieve the
targets.
(True/False)
12. Pioneer Ltd. Is dealing in fruit juices and hair oils .To ensure unity of action 1
and coordination, it has made two separate divisions for each product. Each
division has its own in charge, plans and execution resources. Thus, both
the divisions are moving towards the same objectives through focused
efforts . Identify the Principle of management followed by Pioneer Ltd. In
the above case.
(a) Espirit de corps
(b) Equity
(c) Unity of Direction
(d) Authority and Responsibility
13. Ritu is the manager of the northern division of a large corporate house. 1
What is her main task?
(a) To formulate overall organisational goals, and frame strategies for their
achievement.
(b) To carry out the plans formulated by the top managers.
(c) To ensure that their department has the necessary personnel.
(d) To interact with the actual work force and pass on instructions of the
management to the workers.
Assertion and Reasoning 1
Read the following statement – Assertion (A) and (R) and collect the correct
alternative in each case.
(a) Both Assertion (A) and Reason (R ) are true.
(b) Both Assertion (A) and Reason (R) are false .
(c) Assertion (A) is true and Reason (R )is false.
(d) Assertion (A) is false and Reason (R ) is true .
14 Assertion (A) : Planning cannot prevent problems . 1
Reason (R) : Planning can only predict the problems and prepare
contingency plans to deal with then if and when they occur.
15. Assertion (A) : Business Environment helps in Improving performance . 1
Reason (R) : Enterprises that continuously monitor their environment and
adopt suitable business practices are the ones which not only improve their
present performance but also continue to succeed in the market for a
longer period.
16. Assertion (A) : A Financial Planning means estimating the requirements of 1

business and determing source of funds .
Reason (R) : Capital structure refers to mix between owners fund and
borrowed funds .
17. Which of the following helps to eliminate the use of stock certificates by 1
placing stock transactions on computers?
(a) Demat account
(b) Securities Exchange Commission
(c) Depository Trust Company
(d) Federal Depository Insurance Corporation
18. Capital structure refers to the proportion between : 1

(a) Fixed Assets and current assets
(b) Debts and Equity
(c) Fixed assets and working capital
(d) None of these.
19. What Information do we get about coordination through the medium of 1
interdependence of various processes ?
(a) Meaning (b) Characteristics

(c ) Need (d) None of these
20. Under __________ the Reserve Bank keeps control on the money supply in 1
order to achieve the objectives of the general economic policy .
(a) Fiscal Policy (b) Monetary Policy
(c ) Trade Policy (d) Industrial Policy
21. 3
India's education system is under pressure to adapt to a rapidly changing
world. To keep pace with a global paradigm shift brought about by
digitization, our education system is adopting digital resources and
methodologies to improve accessibility, quality, and scale. Nearly 89% of
Gen Z students prioritize using digital media like videos to enhance their
education and 63% of their teachers believe in including more technology-
focused interactive sessions to better prepare students. Not only
organizations but the government are also investing heavily in bettering the
education system be it with revamping the National Education Policy,
launching Skills India initiative, etc. Identify and explain the various
dimensions of the business environment being referred to in the above
case.
22. Distinguish between the term ‘Training and Development’ based on 3
(a) Purpose / Objective
(b) Depth of Knowledge
(c) Focus /Orientation
OR
Explain the steps to be followed in the process of controlling function of
management after setting standards.
23. Ankur is working as a production manager in an organisation. His 3
subordinate Saurabh discussed with him a method of production which will
reduce the cost of production. But due to some domestic problems and
Ankur’s mind being preoccupied he is not in a position to understand the
message. Saurabh got disappointed by this. Identify the factor which acts as
a communication barrier. Explain three other factors of the same group of
communication barriers.
24. Raghav is engaged in ‘Transport business’ .Identify the working capital 3
requirements of Raghav stating the reason in support of your answer.
Raghav also wants to expand and diversify his transport businesss.
Explain any two factors that will affect his capital requirements.
OR
State any three protective functions of Securities and Exchange Board of
India (SEBI).
25. The SEBI has imposed a penalty of Rs.7,269.5 crore on Pearls Agrotech 4
Corporation Limited (PACL) and its four directors — Tarlochan Singh,
Sukhdev Singh, Gurmeet Singh and Subrata Bhattacharya who had
mobilised funds from the general public through illegal collective
investment schemes in the name of purchase and development of
agriculture land. While imposing the penalty, the biggest in its history,
Securities and Exchange Board of India (SEBI) said the company deserved
"maximum penalty" for duping the common man. Its Prevention of
Fraudulent and Unfair Trade Practices Regulations provides for "severe to
severe penalties" for dealing with such violations. As per SEBI norms, it can
impose a penalty of Rs.25 crore or three times of the profit made by
indulging in fraudulent and unfair trade practices and in the present case,
the regulator has imposed a fine equivalent to three times of the illicit
gains. In context of the above case:
a. State the objectives of setting up SEBI.
b. Identify the type of function performed by SEBI by quoting lines from the
paragraph.
26. What is meant by Selection? Explain any three steps involved in the process 4
of selection of employees.
OR
Explain in brief the various steps involved in the process of staffing
27. Energy drinks India Ltd.' have scanned a profitable opportunity for 4
marketing of soft drinks with Indian Traditional Flavour. The company wants
to market its products in India and in neighbouring countries. A Board
meeting of the company was held on 14-12-2022 where in the marketing
manager was asked to give a presentation to develop this market offering.
For this it was also decided to set-up its manufacturing unit in a village of
Bihar. This will not only help in the development of the village but will also
provide employment to the youth of that village. The marketing manager
chooses a combination of variables to prepare its market offering. He used
a set of marketing tools that firm will use to pursue its marketing objectives
in the target market.
(a) Name and state the concept of marketing used by the marketing
manager for creating its market offering.
(b) Also, explain briefly the various elements of this concept.
(c) State any two values that the company wants to communicate to the
society.
28. After passing his secondary school examination, David left the school at the 4
age of 15 years and started getting training under his father. His father, a
renowned electrician, had worked for many companies. He everyday
started accompanying his father on work and watched him carefully while
working. David was a good learner and learnt the techniques of work
quickly. Now his father started passing on the tricks of the trade to David.
With the passage of time David acquired a Kiel level skill and became a well
known electrician at Indore. Big business houses started calling him for
electrical wiring.
(a) Name the method of training discussed in the above para.
(b) State any three benefits which David could get on being trained.
29. There are two managers, Rahul and Pawan. Rahul is saying that ‘Controlling 4
is forward looking whereas according to Pankaj ‘Controlling is looking back’.
Who is correct? Explain why?
OR
Vishesh works as an interior designer. He gets a contract to redesign a play
school. He employs three painters on the site assuming that an average
painter will be able to paint 10 desks in a day. At the end of the first day of
their work, Vishesh finds that the painter A, painter B, and painter C have
painted 12, 14 and 15 desks respectively. On comparing the actual
performance with the planned performance, he realises that the standard
set by him is too low. Consequently, he decides to review and revise the
standard and raise it.
a. Identify the function of management being performed by Vishesh.
b. "Planning and controlling are both backwards-looking as well as forward-
looking functions." Explain the statement with reference to the above
paragraph.
30. Rajat a Sales Manager, achieved his sales targets one month in advance. 4
This achievement was displayed on the notice board and a certificate for
the best performance was awarded to him by the CEO of the company
On the basis of the given information about, Rajat a Sales Manager answer
the following question:
(a) Name the incentive provided to Rajat.
(b) Identify the type of incentive.
(c) List any two other incentives of the type identified in part (b).
31. Advertisement is an important business activity. On the one hand, it makes 6
available to the people information regarding different new and old
products and on the other, it is also a source of living for many persons.
Impressed by these traits of advertisement Tanu, Manu and Sanchit, three
students of Class-XII made up their mind to go ahead with project work on
an advertisement. All the three conversed with the people about
advertisement. Each one of them, on the basis of his survey, concluded as
under: i. Tanu opined that advertisement costs get transferred to
consumers in the form of high prices. ii. Manu was of the opinion that
advertisement showed reality in a twisted form. iii. Sanchit maintained that
advertisement was turning people from reality to artificiality. a. What do
the above remarks about advertisement hint at? Clarify it. b. Identify two
values that advertisement presents to society
OR
P Ltd. is manufacturing chocolates, biscuits, cakes and other similar

products. The company is not generating enough profits. Saurabh, the
Marketing manager of the company got a survey conducted to find out the
reasons. The findings of the survey revealed that in spite of better quality,
the customers were not able to distinguish the products of the company
from its competitors. Though the customers wanted to buy the products of
‘P Ltd.’ again and again because of its good quality, but they were not able
to identify its products in the market. Because of this, the sales of the
company could not pick up resulting in inadequate profits. Saurabh, the
Marketing manager now realised that ‘P Ltd.’ had forgotten to take one of
the most important decisions related to the product. What decision should
‘P Ltd.’ take so that its customers are able to identify its products in the
market? Explain the benefits that may result to ‘P Ltd.’ and its customers if
the above decision is taken.
32. A company manufacturing sewing machines set up in 1945 by the British 6
promoters follows formal organization culture in totality. It is facing a lot of
problems with delays in decision making. As a result it is not able to adapt
to changing the business environment. The workforce is also not motivated
since they cannot vent their grievances except through formal channels,
which involve red tape. Employee turnover is high. Its market share is also
declining due to changed circumstances and the business environment. You
are to advise the company with regard to change it should bring about in its
organization structure to overcome the problems faced by it. Give reasons
in terms of benefits it will derive from the changes suggested by you.
33. Radhika opens a jewellary showroom in Jaipur after completing a course in 6

jewellary designing. She has employed eleven persons in her showroom. For
greater productivity, she divides the work into small tasks and each
employee is trained to perform his/her specialized job. The salespersons are
allowed to close a deal with a buyer by giving a maximum of 10% discount,
whereas the decision to give any further discount rests with Radhika as the
final authority. In the earlier days of starting the business, five of her
employees were asked to put in extra hours of work. In return, she had
promised to give them a special incentive within a year. Therefore, after six
months when the business was doing well, she awarded a cash bonus to
each of these employees to honour her commitment. However, when it
comes to settling the conflicts among her employees, she tends to be more
biased towards her female employees. In the context of the above case: i.
Identify and explain the various principles of management that are being
applied by Radhika by quoting lines from the paragraph.
ii. Identify and explain the principle of management which is being violated
by Radhika by quoting lines from the paragraph.
iii. State any one effect of the violation of the principle of management by
Radhika as identified in part (b) of the question.
34. Briefly discuss Planning process 6
OR
Flipkart is an e-commerce company founded in the year 2007 by Sachin
Bansal and Binny Bansal. The company is registered in Singapore but has its
headquarters in Bengaluru, India. The company seeks to increase traffic
(more clicks on their products) and boost sales and revenue through the
integration of Mobile Apps, Display, Pay Per Click and Search Engine
Optimization. In order to dispel the fear of people related to shopping
online, Flipkart was the first company to implement the popular 'Cash on
Delivery' facility. All the products sold by the company under a particular
category may have different return/replacement period. Flipkart allows
multiple payment options such as cash on delivery, credit or debit card
transactions, net banking, e-gift voucher and card swipe on delivery. The
company operates both ways when an order is received. The products for
which it holds inventory are dispatched by it directly. For the products they
do not store in the inventory, they just send the order received by them to
the supplier who ships it. The company plans to spend Rs 75 crores on e-
Commerce advertising in the year 2016. Flipkart reserves the right to
terminate your membership and/or refuse to provide you with access to the
website if it is brought to Flipkart's notice or if it is discovered that you are
under the age of 18 years. This is because as per the Indian Contract Act,
1872, the minors, un-discharged insolvents, etc. are not eligible to use the
website. In the context of the above case, identify the different types of
plans being used by Flipkart by quoting lines from the paragraph.
SAMPLE PAPER SET-9
TIME: 3 HOURS MM:80
4. Answers to the questions carrying 3 marks may be from 50 to 75 worlds.
5. Answers to the questions carrying 4 marks may be about 150 worlds.
7. Attempt all parts of the questions together. 2020-21
Q. Part A :- Principles and Functions of Management MAR

NO. KS
1. If planning, organising, staffing, directing and controlling applied in a 1
organisation such school, club, restaurant hospitals etc? If yes, which
characteristics of management does it signify?
a. Management is dynamic
b. Management is goal oriented
c. Management is multi-dimensional
d. Management is pervasive
2 Sonali is the manager of a large company manufacturing garments for kids. 1
She plans her winter collection in the month of August itself. Then, she
ensures that there is adequate workforce. She continuously monitors
whether production is proceeding according to plans. She asks the
marketing department to prepare their promotional and advertising
campaigns also. Identify the concept of management explained in the above
para.
a. coordination
b. cooperation
c. organising
d. all of these
3 Ramarjuna joins an IT from as a system analyst after completing his masters 1
in Computer Science. As the nature of his work demands he has to work in
very close coordination with all the departmental heads in the firm, very
soon Ramarjuna realizes that each departmental head has own individual
style of working. They differ greatly in their day-to-day approach to work.
They tend to deal with a given situation, an issue or a problem through a
combination of their own experience, creativity, imagination, initiative and
innovation. In the context of the above case: Identify the nature of
management highlighted in the above case.
a. management as an Art
b. Management as a Science
c management as a science as well as Art
d. None of these
4 Geetika is working in a private sector bank. One of her key function relates 1
to the formulation of the overall organizational goals and strategies of the
bank. Identify the level of management at which she is working?
a. Lower level b. Middle level c. top level d. none of these
5 Which component of business environment requires that advertisements 1
of baby food must necessarily inform the potential buyers that mother’s
milk is the best?
a. Political environment b. social environment
C Legal environment d. all of these
6 It is the process by which government control over the industry is being 1
loosened. Give the term to which this statement is trying to indicate.
a. Globalisation
b. Privatisation
c. Liberalisation
d. none of these
7 Philips, a company manufacturing light bulbs incurred heavy expenditure 1
on scientific Research and Development and discovered a technology that
made it possible to produce an energy efficient light bulb that lasts at least
twenty times as long as a standard bulb. It resulted in growth and
profitability of the company. Identify and state the dimension of business
environment mentioned above.
a. technological environment b. economic environment
c. political environment d. social environment
8 D & D Ltd. is a large manufacturing unit. Recently, the company has 1
conducted the ‘time’ and ‘motion’ studies and concluded that on an
average a worker could produce 120 units per day. However, it has been
noticed that average daily production of a worker is in the range of 80-90
units. Which function of management is needed to ensure that the actual
performance is in accordance with the performance as per ‘time’ and
‘motion ‘studies?
a. planning b. organising c. controlling d. none of these
9 Which organisation structure is suitable for a uni-product manufacturing 1
Company?
a. Functional structure b. Divisional structure
c. both a and b d. none of these
10 Alpha Ltd. was manufacturing Auto spare parts. To improve the efficiency 1
of employees the company provided training to their employees by inviting
an expert who demonstrated the whole process of manufacturing. The
expert quoted that all deviations cannot be controlled, so manager must
know which deviation in key areas must be attended urgently as compared
to deviation in non-key area. He also suggested that human beings are
bound to make mistakes as manager should not take strict action on every
minute mistake of workers, rather he can fix a range of deviation and take
action if deviation is above the specified large. Name the two ways of
analyzing deviation mentioned above.
(a) critical Point Control (b) Management by exception
(c)both (a) and (b) (d)none of these
11 Sakshi Ltd, a well-known real estate company has managed to carve a niche 1
for itself in this sector. Recently, it was revealed that the directors of the
company have used price sensitive information for their own personal
interest. Adequate public disclosures were also not made. SEBI is
considering action against these directors. Name the term used for trading
malpractice done by the directors of this company.
12 Which of the following is the ideal situation. 1
a. Authority> responsibility b. Authority = Responsibility
c Authority < responsibility d. None of these
13 A company require Rs. 2 crore for inventory, payment of wages, salaries, 1
maintaining bank balance, etc. Suggest which financial market the company
may approach.
a. Money market b. capital market c. both a and b d. None of these
14 Mission Coach Ltd. is a large creditworthy company that manufactures 1
coaches for the Indian Railways. It now wants to export these coaches to
other countries and decides to invest in new hi-tech machines. Since the
investment is large, it requires long-term finance. It decides to raise funds
by issuing equity shares. The issue of equity shares involves huge
floatation cost. To meet the expenses of floatation cost, the company
decides to tap the money market. 1. Name the explain the money-market
instrument the company can use for the above purpose.
a. treasury bill b. certificate of deposit
C call money d. Commercial paper
15 Which of the following best indicates the importance of business 1
environment.
a. Identification b. improvement in performance
c coping with rapid changes d. All of them
16 Reshu’s father has gifted her shares of a large cement company, with which 1
he had been working. The securities were in physical form. She already has
a bank account and does not possess any other forms of securities. She
wished to sell the shares and approached a registered broker for the
purpose. Mention one mandatory detail which she will have to provide
with the broker.
a.Permanent account Number (PAN) b. Aadhar c. passport d. all of these
17 Amar is engaged in manufacturing of refrigerators. He surveyed the market 1
and found that customers need a refrigerator with a separate provision of
water cooler in it. He decided to launch the same refrigerator in the market.
a. Production concept
b. Product concept
c. Selling concept
d. Marketing concept
18 ‘Maruti Vega Ltd.’ entered into the market with coloured television and 1
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. price mix c. product mix d. promotion mix
19 It is the identification of a product. It can be in the form of name, symbol, 1
or design.it helps in differentiating the firm product from competitor
product. Which concept of marketing is highlighted in above case.
a. Labelling
b. packaging
c. branding
d. all of these
20 Match the following: 1
a. Production concept 1. Customer satisfaction
b. Product concept 2. To sell whatever is produced
c. Selling concept 3. Large scale production to decrease the cost
d. Marketing concept 4. Good quality, added feature in product
21 Explain any three points of importance of controlling. 3
22 The management of Amaira Ltd. strongly believes that the members of the 3
organization should work toward fulfilled the common organizational goals.
This requires team work and integration of efforts of all individuals
departments and specialists. This is because all the individuals and
departments depend on each other for information and resources to
perform their respective activities. Manager needs to reconcile differences
in approach, timing, efforts and interest. At the same time it should enable
all its members to grow and develop. Thus, there is a need to harmonize
individual goals and organizational goals.
1. State the concept of management discussed above.
2. State any two features of the concept identified in above para
23 Distinguish between Internal recruitment and external recruitment on the 3
basis of:
a. Meaning b. economy and c. Morale of employee
OR
What are the sources of internal recruitment?
24 What are the regulations of SEBI that company must comply with.(any 3
three)
Or
What are the protections that Investor enjoys under SEBI Guidelines.
25 A company’s earning before interest and tax is Rs 10 lakh. It pays 10% 4
interest on its debt. Total investment of company is Rs 50 lakh.
(a) Advise the company whenever it should include debt or equity to
raise its capital.
(b) Name the concept related to this.
OR
What are the different ways of issuing securities in Primary Market.
26 ‘Madhur Milan’ is a popular online matrimonial portal. It seeks to provide 4
personalized match making service. The company has 80 offices in India,
and is now planning to open offices in Singapore, Dubai and Canada to cater
to its customers beyond the country. The company has decided to opt for
the sources of equity capital to raise the required amount of capital. In
context of the above case:
1. Identify and explain the type of risk which increases with the higher use
of debt.
2. Explain briefly any three factors because of which you think the company
has decided to opt for equity capital
27 A company X Ltd. is setting up a new plant in India for manufacturing auto 4
components. India has highly competitive and cost-effective production
base in this sector. X Ltd. is planning to capture about 40% of the market
share in India and also export to the tune of at least $5 million in about 2
years of its planned operations. To achieve these targets, it requires a
highly trained and motivated workforce. You have been retained by the
company to advise it in this matter.
(i) Which sources of recruitment the company should rely upon?
(ii) Which methods of training should company initiate?
28 Huma is working in a company on a permanent basis. As per job agreement 4
she had to work for 8 hours a day and was free to work overtime. Huma
worked overtime, due to which she fell ill and had to take leave from her
work. No one showed concern and enquired about her health. She realized
that she was fulfilling only some of her needs while some other needs still
remained to be fulfilled.
(i) By quoting the lines from the above para, identify the needs of Huma
which she is able to fulfil.
(ii) Also explain two other needs of Huma followed by the above needs,
which still remained to be satisfied.
29 What is the need for consumer protection? 4
Or
Explain the following Rights available under Consumer Protection Act.
a. Right to safety b. Right to be Heard
30 Mrs. Rajlaxmi is working as the Human Resource Consultant in a firm 4
manufacturing cosmetic, which is facing a problem of high employee
turnover. The CEO of the company has invited suggestions from her for
retaining the talented employees & reducing the
employee turnover. Mrs. Rajlaxmi recommends that the good employees
be rewarded in a way that it creates a feeling of ownership among the
employees and at the same time makes them contribute towards the
growth of the organization.
(a) Identify the incentive and explain its type, which has been suggested by
Mrs. Rajlaxmi to the CEO of the company.
(b) Also explain any two other incentives of the same type
31 What is Price mix? Explain the factors which are to be kept in mind while 6
fixing the price of a Product.
Or
What is Labelling. Discuss briefly the functions perform by labelling
32 What are the main features to be considered by the management while 6
planning.
33 Home Creations Ltd.’ is a well -known chain of large department store 6
offering various types of products under one roof. The company owns fifty
stores in various parts of the country. Each store is placed under the charge
of a manager who is allowed to run their stores autonomously by deciding
about the products which may be promoted, appointment of staff, ways to
handle customer complaints etc. As these managers have a deeper
knowledge of the local situations, it enables them to take these decisions
effectively keeping in view the local circumstances and consumers’ needs.
This approach helps to improve customer service and at the same time
serves to boost morale and increase the job satisfaction of the store
managers as it empowers them to innovate and use their initiatives. In the
context of above case:
1. Identify and explain the policy followed by ‘Home Creations Ltd.’ to run
their stores successfully.
2. Also, give any three points highlighting the importance of the approach
followed as identified in part (a) of the question.
3. List any two values that ‘Home Creations Ltd.’ wants to communicate to
its employees.
34 Explain briefly the following techniques of Scientific work study: 6
a. Motion study
b. Method study
c. Standardisation and simplification of work.
Or
Explain briefly the following principle of management
a. Order
b. Authority and Responsibility
c. Centralisation and Decentralisation
SAMPLE PAPER SET-10
TIME: 3 HOURS MM:80
Q. MARKS
NO.
1. Which of the following is true? 1
(a) Coordination is not equally important at all levels of management
(b) Coordination has no importance
(c) Coordination is equally important at all levels of management
(d) None of these.
2 Tarang enterprises limited is planning to increase its sales by 30% in the 1

next quarter. identify the features of management being highlighted in the
given statement.
(a) Management is all pervasive.
(b) Management is Goal oriented process.
(c) Management is a continuous process.
(d) All of the above.

4 India continue to be a lower-middle-income country along with 46 other, 1
while sri Lanka has climbed to the upper middle income group for the
fiscal year 2020 , according to world bank classification of countries by
income levels, released on July 1st 2019.
(a) Social
(b) Technological
(c) Economic
(d) political
5 Yash runs a logistic company. The tour Incharges of each trip in the 1
company are expected to submit a report to the event manager on the
completion of every trip.
Identify the step in the controlling process being described in the above
lines.
(a) Setting of standards
(b) Measurement of actual performance
(c) Taking corrective action
(d) Analysing the deviations
6 In a marketing firm, the financial manager pay more attention towards an 1
increase of 3% in the marketing cost as compared to a 15% increase in the
courier expenses.
Identify the concept being used by the manager.
(a) Management by exception
(b) Critical point control
(c) Corrective action
7 Jai is working as marketing manager in a company. He has been given the 1
task of selling 1,00,000 units of a product at the cost of Rs. 100 per unit
with in 20 days. He is able to sell all the units within the stipulated time,
but had to sell last 1,000 units at 20% discount in order to complete the
target. In such a situation, he will be considered to be
(a) An efficient manager
(b) An effective manager
(c) Both effective and efficient manager
8 Risahabh has joined as a creative head in an entertainment company. He 1
always ensures that the work has been divided into small and manageable
activities and also the activities of similar nature are grouped together.
Identify the related step in organising process being mentioned in the
above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationship
9 Lakshay has been given the task of arranging for five-day conference for 1
foreign delegates. In order to smooth functioning of the event, he has
made two people as co-ordinators to take care of activities related to
registration and refreshment.
Identify the function of management being carried out by Lakshay.
(a) Planning
(b) Staffing
(c) Organising
(d) directing
10 The growing awareness about healthcare has led to an increase in the 1
demand for healthcare products and services in the country.
Identify the feature of business environment being described in the above
case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
environment?
(b) Customers
(c) Employees
(d) investor
12 Karam limited is offering a travel package for 15 destinations worldwide 1
with a free insurance on the booking for the month of December, 2019.
Identify the features of marketing being describe in the above lines.
(a) Needs and wants
(b) Creating a market offering
(c) Customer value
(d) Exchange mechanism
13 In order to promote the habit of health and hygiene among weaker sections 1
of the society, Abhyas limited has launched low cost packs of hand wash.
Identify the type of marketing philosophy being adopted by the company.
(a) Product concept
14 Keeping in view the recent trends of sales regression, Sona limited has 1
decided to offer a flat 15% discount on all the products. Identify the
related function of marketing being described in the given lines.
(b) Branding
(c) Pricing
(d) promotion
15 Good health limited has decided to launch a new range of water bottles 1
with in built water purifier. Instead of marketing the product by is generic
name, the company has decided to call it ‘Purifire’. Identify the type of
marketing function being described in the given lines.
(b) Branding
(c) Pricing
(d) promotion
16 Sugandha purchased a pack of crayons for her daughter from nearby 1
Read the following text and answer question No.17-20 on the basis
of the same:
PISQAA SOLAR limited is searching options to raise ₹20,000 crores

from the primary market for diversification and modernisation of
existing projects. It hired the services of a renowned financial
consultancy firm, DHAN LAXMI PVT. LTD. for suggesting options
for the same. DHAN LAXMI PVT. LTD. suggested a list of options
to the Board of Directors of the company. It was decided that for the
immediate requirement of ₹1500 crores the company will give a
privilege to existing shareholders to subscribe to a new issue of shares
according to the terms and conditions of the company. ₹4500 crores
would be raised by allotment of securities to a consortium of financial
institutions, instead of inviting subscription from the public by making
a direct appeal to investors to raise capital. It was further decided to
raise capital to the tune of ₹6000 crores through an issuing house. All
these options were accepted by the Board of Directors. The Board
further decided to raise ₹8,000 crores through the on-line system of
the stock exchange by entering into an agreement with the exchange
17 Identify the method of floatation of new issues in the primary market, 1
not taken up by ISQAA SOLAR LTD.
A. Offer for sale

B. Rights issue
C. E-IPO
D. Offer through prospectus
18 “₹4500 crores would be raised by allotment of securities to a 1
consortium of financial institutions, instead of inviting subscription
from the public by making a direct appeal to investors to raise
capital.’’ Identify the method of floatation of new issues in the
primary market being discussed above, which the company has
decided to use.
A. Offer for sale B. Private placement
C. Right Issue D. Offer through Prospectus

19 Identify the reason which has made the firm raise funds from the 1
institutional investors.
A. It helps to raise funds quickly B. It is not expensive
C. Both a & b D. None of the above.

20 How much money was raised by the company through E-IPO’s 1
A.₹8000 crores B. ₹4500 crores
C. ₹20,000 crores D. ₹6000 crores

21 Raman is working as a plant superintendent in Tifco ltd. Name the 3
managerial level at which he is working. State any two functions he will
perform as plant superintendent in this company.
22 Explain Internship training and vestibule training and classify them as 3
on-the-job and off-the-job methods of training.
23 Which function of management ensures a manager that activities in an 3
organisation are performed as per plan?
Name and state some points of its importance.
OR
“It is generally believed that measurement of performance should be
done after the task is completed.” Identify and explain the step in the
process of the function of management being discussed above and the
step followed by the same in the process.
24 Explain any three functions of stock exchange. 3
OR
Money market is essentially a market for short term funds. In the light of
this statement state any three features of money market.
25 In an interview with a leading news channel, Mr. Ramesh Kwatra, 4
CEO of ‘Get My Job’ has suggested that the Companies which want
more and more people to apply for jobs in their organization should
make the process for applying for jobs easier and candidate friendly.
Name and explain the next two steps which follow the step, in the
process of the function of management being discussed above.
26 Pranav is a supervisor at ‘Ghan Shyam Cake and Biscuits Factory’. 4
The factory produces 10,000 packets of cake and biscuits every day.
As a supervisor Pranav ensures that work goes on smoothly and there
is no interruption in production. He is a good leader who gives orders
only after consulting his subordinates, working out the policies with the
acceptance of the group. Identify and explain the leadership style being
adopted by Pranav.
27 Explain any Four points that highlight the importance of directing 4
function of Management.
OR
Identify and explain the elements of directing mentioned below
(A) Nistha, a manager, has the ability to influence others to bring

about a change in their behaviour.
(B) Seeraj, a managing director, declares share in the profits to the
manager for their contribution to increase profits of the
company.
28 Explain any four factors that can affect the Fixed capital requirement 4
of a company.
OR
Explain any four factors that affect the choice of capital structure of a
company
29 Raghu wants to start a business of selling Simple masks after the 4
outbreak of the global pandemic of COVID-19. Due to the uncertain
market conditions he wants to make a low investment in fixed capital.
Suggest how the decisions related to the choice of technique and
financing alternatives can help Raghu in ensuring a low investment in
fixed capital requirements.
30 Explain the following rights of consumers provided by Consumer 4
Protection Act, 2019:-
(a) Right to Information
(b) Right to seek redressal

31 Haryaram’ is a famous chain selling a large variety of products in the 6
Indian market. Their products include chips, biscuits, sweets and
squashes. It charges a comparatively higher price than its competitors as
it sells quality products. Besides, it offers regular discounts to its
customers and easy credit terms to its retailers. It has five of its own retail
shops. It also sells its products through various grocery stores to that the
products are made available to customers at the right place, in the right
quantity and at the right time. It regularly uses different communication
tools to increase its sales.
The above para describes the combination of elements marketing mix
used by Haryaram to prepare its market offering. Identify and explain the
elements.
OR
After acquiring the necessary knowledge and skills on starting an
Aloevera Farm. Ashok wanted to be the leading manufacturer of Aloevera
products worldwide. He observed that the products were expensive as the
demand of the products was more than supply. He was also keen to
promote methods and practices that were economically visible,
environmentally sound and at the same time protecting public health.
Ashok's main consideration was about the amount of money paid by the
consumers in consideration of the purchase of Aloevera products. He also
thought that competitors prices and their anticipated reactions to be
considered for this.
After gathering and analysing information and doing correct market

planning, he came to know that the consumers compare the value of a
product to the value of money which they are required to pay. The
consumers will be ready to buy a product when they perceived that the
value of the product is at least equal to the value of money which they
would pay.
Since he was entering into a new market, he felt that he may not be able
to cover all costs. He knew that in the long run the business will not be
able to survive unless all costs are covered in addition to a minimum
profit.
He examined the quality and features of the products of the competitors

and the anticipated reactions of the consumers. Considering the same he
decided to add some unique features to the packaging and also decided to
provide free home delivery of the products.
The above case relates to a concept which is considered to be an effective

competitive marketing weapon. In conditions of perfect competition most
of the firms compete with each other on this concept in the marketing of
goods and services.
(a) Identify the concept.
(b) Explain briefly any four factors discussed in the above case related to
the concept so identified.
32 Explain the following principles of Management: 6
(1) Discipline
(2) Scalar chain
(3) Stability of tenure of personnel
33 Rishu, Ashu and Ravi have decided to start a business of manufacturing 6
toys. They identified the following main activities which they have to
perform; Purchase of raw materials, Purchase of machinery, Production
of toys, Arrangement of finance, Sale of toys, Identifying the areas where
they can sell their toys Selection of employees In order to facilitate the
work they thought that four managers should be appointed to look after
Production, Finance, Marketing’ Personnel. Identify the function of
management involved in the abovementioned para. Quote the lines from
the above para which help you in identifying this function. State the steps
followed in the process of this function of management.
34 Planning is worth the huge costs involved? Do you agree? Explain 6
any four reasons in support of your answer.
OR
“If the project is important then more alternatives should be generated

and thoroughly discussed amongst the members of the organisation.”
Identify and explain the step in the process of planning being discussed
above. Also explain the remaining steps which will have to be carried
out to complete the process.
SAMPLE PAPER SET-11
TIME: 3 HOURS MM:80
GENERAL INSTUCTIONS:
7. Attempt all parts of the question together.
Q.NO. QUESTIONS MARKS
1. Mr. Tim, the Managing Director of ABC Ltd. appointed Production 1
manager, Mr. Jim who was assisted by Mr. Sin who was to take care of
ensuring the proper and safe working conditions for workers. Where will
Mr. Sin be placed in the management hierarchy?
(a) Middle level
(b) Top level
(c) Operational level
(d) All levels
2. To conserve tigers, D Ltd. started an awareness campaign “Save our 1
tigers”. Which objective of Management is highlighted here?
(a) Organisational
(b) Personal
(c) Social
(d) Both (b) and (c)
3. From the following two statements, choose the correct statement: 1
Statement I: Scientific principles have universal application.
Statement II: Management is an art.
(a) Statement I is correct but statement II is wrong.
(b) Statement I is wrong but statement II is correct.
(c) Both the statements are correct.
(d) Both the statements are incorrect.
4. Identify the function of Stock Exchange: 1
(a) Trading and settlement procedure
(b) Depository participants
(c) Pricing of securities
(d) Dematerialisation
5. Which of the following statements is incorrect? 1
(a) Marketing is a social process
(b) Focus of the marketing activities is on customer needs
(c) Marketing is merely a post production activity.
(d) Marketing mix is a wider term than product mix.
6. A major decision area under one of the functions of marketing is the 1
decision regarding marketing intermediaries to be used. Name the function.
(a) Physical Distribution
(b) Gathering and analysing market information
(c) Promotion
(d)Transportation
7. With the introduction of mineral water bottle in India, Bisleri was able to 1
capture a big market share in India. Which importance of Business
Environment is highlighted here?
(a) Identifying opportunities and getting first mover advantage
(b) Identifying threat and getting warning signals
(c) Helps in tapping resources
(d) Helps in policy making
8. Hero, an Indian company entered into a joint venture with Honda, a 1
Japanese company. Which level of management was responsible to form
the company ‘Hero Honda’?
(a) Middle level management
(b) Top level management
(c) Operational level management
(d) Shop-floor
9. “It may be difficult to know the extent of the relative impact of the social, 1
economic, political, technological or legal factors on change in demand of
a product in the market.”
Which feature of Business environment is highlighted by this point?
(a) Inter-relation
(b) Dynamic
(c) Relativity
(d) Dynamic
10. Maruti company was the first company to understand the need of middle 1
class people and launched the small car concept and availed…………….
(a) Improvement in performance
(b) Warning signal
(c) First mover advantage
11. When mismatch between plan and actual performance is due to under or 1
over stating of plan, then it is called:
(a) Strategic Control
(b) Operational Control
(c) Situational Control
12. Assertion (A): Identification and division of work is the first step in 1
organizing.
Reason (R): Organising involves identification and division of work that
has to be done in accordance with previously determined plans.
(a) Both A and R are true and R is 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
13. Which type of Organisational Structure will you suggest for a firm which 1
has diversified activities and operations requiring a high degree of
specialization?
(a) Centralised structure
(b) decentralised structure
(c) Divisional structure
(d) Functional structure
Statement I: Under Critical Point Control, manager critically observes and
takes action on every deviation.
Statement II: In Controlling, standards can be set in both qualitative and
quantitative terms.
15. ………………………….refers to producing goods of predetermined 1
specifications which help in achieving uniformity and consistency in the
output.
(a) Gathering and analysing market information
(b) Grading
(c) Standardisation
(d) Market planning
Statement I: To meet floatation cost, firms generally issue commercial
bills.
Statement II: Under Private placement, shares are never issued to general
public.
Statement I: The interest paid on call money is called call rate
Statement II: Treasury bills are also called zero coupon bonds.
18. If a firm requires two crores for six months time to keep the stock of raw 1
material, it should approach:
(a) Capital market
(b) Money market
(c) Both (a) and (b)
19. Face Creams come in tubes which are thrown by the consumers after the 1
creams are utilised.
Tube of face cream represents which level of packaging?
(a) Primary package
(d) Speciality packaging
20. Match the concept of marketing in column I with their respective key 1
terms in column II
Column I Column II
A.Marketing concept (i) Profit through sales volume
B. Selling Concept (ii) Profit through customer satisfaction
C. Product Concept (iii) Profit through product quality
(a) A-(i), B-(ii), C-(iii)
(b) A-(ii), B-(iii), C-(i)
(c) A-(iii), B-(i), C-(ii)
(d) A-(ii), B-(i), C-(iii)
21. Briefly explain any three techniques of Scientific Management as given by 3
F.W. Taylor.
22. Jatin, who has recently received an award for the best talented manger, is a 3
very able manager. He has helped the starting of various halted projects by
guiding his subordinates and removing their doubts through proper
directing. This has helped the workers acheive their targets on time. He
knows that every member of the team is important for the completion of a
project. So, he guides his team in such a manner that every single effort of
every employee matters and is directed towards the achievement of
objectives. There is a lighter side of his personality. He is very jovial. He
cares about his team. This has helped him bring cooperation and
commitment among his team members thus bringing a unique balance
between activities and the groups. However this has not prevented him
from having a keen vision of a leader. Whenever the subordinates have
rejected any change, he has tried to bring their cooperation by proper
explanation and consistent efforts in making them understand the value of
bringing these changes. The top level management also sees a big role for
him in the future.
Identify and state any 3 points of importance of Directing highlighted

above by quoting the lines.
23. “There is a closed and reciprocal relationship between Controlling and 3
Planning”. Explain the statement through an example.
OR
‘An ideal control system is one that checks every bit of performance’. Do
you agree with the statement? Give reasons to support your answer.
24. Explain any three features of ‘Money Market’. 3
OR
A Stock Exchange is a place where financial assets can be converted into
cash. It helps in fixing market value of securities and helps to know the
economic growth of a country.
(i) State the function of Stock Exchange referred in above para.
(ii) State any other two functions of Stock Exchange.
25. Vijaya Public School had a vacancy of a Science teacher. They were 4
looking for a smart and creative teacher having a drive for excellence. An
advertisement was given in all leading dailies. Since the response was
huge, the school examined all the application forms and rejected the
candidates who did not have the necessary qualifications. Thereafter, a test
was conducted to measure the existing skills of the candidates. After that it
was followed by a formal in-depth conversation with the Principal of the
school and a panel of Science experts.
(a) State the steps that have been performed by. Vijaya Public School in
the process of identifying and choosing the best candidate.
(b) Give the name and also the meaning of the test which was conducted
by the school.
OR
‘Toni industries Ltd.’approached a well-established university in the city
of Chennai to recruit qualified personnels for various technical and
professional jobs. They selected Tinu, Minu, Sinu and Ginu for various
vacancies in the organisation.
After the selection and placement, 'Toni Industries Ltd,' felt the need to
increase the skills and abilities, and the development of the positive
attitude of the employees to perform their specific jobs better. The
company also realized that learning new skills would improve the job
performance of the employees. Hence, the company decided to take the
actions for the same.
(a) Name the step of the staffing process regarding which the company
decided to take action.
(b) State the benefits of the action to 'Toni Industries Ltd'
26. “Better human relationship” is one of the advantages of which type of 4
Communication? Explain any three points of importance of such type of
Communication.
OR
Kailash, the marketing manager of New Garments Ltd. does not allow the
salesmen working under him to freely express their frank opinion and
feelings regarding work related matters.
(i) Identify and explain the organizational barrier created by Kailash.

(ii) Explain any two other barriers from the same category.
27. Directing is the heart of the management process. Do you agree? Give any 4
four reasons in support of your answer.
28. Explain the following Rights of consumers: 4
(i) Right to safety
(ii) Right to seek redressal
(iii) Right to consumer education
(iv) Right to be heard
29. Name the process which helps in estimating the future finance 4
requirements of an organisation. Also, give three points of importance of
that process.
30. Varnika Limited is a large and reputed company which manufactures 4
ventilators. After the outbreak of ‘COVID-19’ in 2020 the company
witnessed an increase in revenue by 40%. It has plans to further increase
its production capacity and also start production of PPE kits, sanitisers and
masks in 2022. The Finance manager of the Company Mr. Rajiv feels
confident about the future of the company and its liquidity position.
Discuss the meaning of Dividend Decision and in the light of the above
statement explain any two factors which should be considered by ‘Varnika
Limited’ while formulating the dividend policy of the company.
31. In the absence of management all the resources of an organisation remain 6
as resources only and never become production. Explain the importance of
Management in the light of this statement.
OR
Medha Ltd. was manufacturing water-heaters. In the first year of its
operations, the revenue earned by the company was just sufficient to meet
its costs. To increase the revenue, the company analysed the reasons of less
revenues. After analysis the company decided:
(i) to reduce the labour cost by shifting the manufacturing unit to a
backward area where labour was available at a very low rate.
(ii) to start manufacturing solar water-heaters and reduce the production of
electric water-heaters slowly. This will not only help in covering the risks,
but also help in meeting other objectives too.
Identify and explain the objectives of management discussed above.

32. A truck manufacturing company has its registered office in Delhi and 6
manufacturing unit in Chennai. The company manufactures different types
of trucks. Its marketing division is located in Noida. Suggest a suitable
Organisational structure for this company giving reason in support of your
answer. Also, explain any four advantages of this structure of Organising.
33. In 2015, Nalin left his luxurious life in Mumbai, where he worked as a 6
manager for Bluebirds Ltd. He shifted to Raipur, Chhattisgarh to fulfill his
grandmother's dream of converting their 25 acre ancestral land into a fertile
farm. For this he set out specific goals along with the activities to be
performed to achieve the goals. Every activity was a challenge since he
was clueless about farming. He learnt every activity from filling the land to
sowing the seeds. To aid farmers he launched his own company
'Innovative Agriculture Solutions Pvt. Ltd.’ It was difficult initially as no
one trusted an urban youth telling farmers about farming. But when
everything was discussed in detail the farmers started taking interest. He
wanted to ensure that the future events meet effectively the best interests of
the company. Through sales forecasting, he prepared an annual plan for
production and sales. He also found that the farmers grew only paddy,
which was an activity of 3-4 months and the land remained idle for the rest
8-9 months of the year. He not only identified but evaluated various
alternatives through which the farms could be utilized for the remaining
months of the year. Through correct foresight and logical and systematic
thinking based on analysis of all facts, all alternatives were examined and
evaluated. He presented a plan to the farmers, where after harvesting
paddy, vegetables could be grown. The above case highlights the features
of one of the functions of management.
By quoting lines from the above identify and explain these features.
OR
Discuss the concept of Planning in the light of the following features:
(i) Planning involves decision making
(ii) Planning is continous
(iii) Planning is goal-oriented
34. Rumi was a student of Business Studies of Class XII. Her father was a 6
farmer who grew different varieties of rice and was well-versed in the
various aspects of rice cultivation. He was also selected by the government
for a pilot-project on rice cultivation. As a project work in Business
Studies, she decided to study the feasibility of marketing good quality rice
at a reasonable price. Her father suggested her to use the Internet to gather
customers’ views and opinions. She found that there was a huge demand
for packaged organic rice. She knew that there were no predetermined
specifications in case of rice because of which it was difficult to achieve
uniformity in the output. To differentiate the product from its competitors,
she gave it the name of ‘Malabari Organic Rice’ and classified it into three
different varieties, namely — Popular, Classic and Supreme, based on the
quality. She felt that these names would help her in product differentiation.
Explain the three functions of marketing with reference to the above
paragraph.
SAMPLE PAPER SET-12
TIME: 3 HOURS MM:80
GENERAL INSTUCTIONS:
words.
7. Attempt all parts of the question together.
S.NO. QUESTIONS MARKS
1. Management is said to be poor if it is: 1
(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both effective and efficient
(d) Neither effective nor efficient
2. What distinguishes a successful manager from a less successful one is the 1
ability to put the principles into practice.” Which aspect of the nature of
management is highlighted in the above statement?
(a) Management as a science
(b) Management as an art
(c) Management as a profession
(d) Management is an intangible force
3. Which level of management is responsible for the welfare and survival of 1
the organisation?
(a) Top level
(b) Middle level
(c) Supervisory level
(d) All levels
4. ………………………….is a framework within which organizational 1
activities are performed.
(a) Span of management
(b) Organizational Structure
(c) Management by exception
5. Mayank, the General Manager of Dinesh equipments , perform the 1
managerial functions of planning, organizing, staffing, directing and
controlling as an ongoing process. Which feature of Management is
highlighted here?
(a) Group activity
(b) Dynamic function
(c) Continous process
(d) Multidimensional
6. The form of organisation known for giving rise to rumors is known as: 1
(a) Formal organisation
(b) Decentralised organisation
(c) Informal organisation
(d) Centralised organisation
7. The health and fitness trend has become popular among large number of 1
urban people. This created a demand for products like organic food, diet
soft drinks, gyms, food supplements etc. Which dimension of business
environment is reflected here?
(a) Technological environment
(b) Economic environment
(c) Social environment
(d) Political environment
8. Indian ethnic wear like sarees are in great demand in India but Italy does 1
not have such a high demand for the same. Which feature of business
environment has been reflected here?
(a) Inter-relatedness
(b) Uncertainty
(c) Complexity
(d) Relativity
9. Statement I: Business environment is mostly certain and can be predicted 1
Statement II: Technological and political changes can always be
anticipated.
Choose the correct option given below:
(a) Statement I is true and Statement II is false
(b) Statement II is true and Statement I is false
(c) Both the statements are true
(d) Both the statements are false
10. Identify the incorrect statement: 1
(a) Money market instruments are safer with minimum risk of default.
(b) Money market instruments are more liquid than capital market
instruments.
(c) Money market instruments are for a maximum tenure of one year.
(d) Investment in money market instruments entails huge sums of money.
11. Controlling is: 1
(a) forward looking
(b) backward looking
(a) both forward and backward looking
(a) none of these
12. Management by exception differentiates between: 1
(a) Standards and output
(b) Planned and actual performance
(c) Critical and simple problems
(d) Input and Output
13. Government of India set up a regulatory body to check on various unfair 1
trade practices like price rigging, unofficial premium in new issues,
unofficial private placements.
(a) SEBI
(b) NSDL
(c) RBI
(d) ASSOCHAM
14. Akhter is working in Zeedan Ltd. as a financial advisor. The company has 1
plans to diversify in overseas markets. This would result in increase in the
price of the shares. Akhter has advised his brother Anwar to purchase
shares of Zeedan Ltd. Anwar purchased the shares as advised by brother.
Which function of SEBI prohibits such malpractice?
(a) Regulatory function
(b) Development function
(c) Protective function
15. Under which of the following methods, securities are not issued directly 1
to the public but are offered through intermediaries like issuing houses or
stock brokers?
(a) Offer through prospectus
(b) Offer for sale
(c) Private placement
(d) E-IPO
16. Which concept of Marketing is highlighted in the lines “it helps in 1
satisfaction of customers and does not leave any industrial waste after
manufacturing”?
(a) Product
(b) Production
(c) Selling
(d) Societal marketing
17. Which element of Marketing is highlighted in the lines “the company also 1
rolled out an advertisement on major TV channels to boost the sales of the
drug”?
(a) Product
(b) Price
(c) Physical distribution
(d) Promotion
18. A brand or part of the brand that is given legal protection is called 1
………………..
(a) Brand mark
(b) Trade mark
(c) Agmark
(d) Patent
19. A major decision area under one of the functions of marketing is the 1
decision regarding marketing intermediaries to be used. Name the
function.
(a) Physical distribution
(b) Product distribution
(c) Branding
20. Which of the following statements is incorrect? 1
21. Success of Dabbawala (who carry tiffins to offices) of Mumbai is an 3
example of which aspect of management? Explain the importance of that
aspect.
22. “Our assets walk out of the door each evening, we have to make sure that 3
they come back the next morning”. This statement relates to which
function of management? State two points of importance of this function.
23. Explain ‘Critical point control’ with respect to Analysing deviations. 3
OR
Explain ‘Management by exception’ with respect to Analysing deviations.
24. State any three functions performed by the Stock Exchange. 3

OR
State any three objectives of Securities Exchange Board Of India.
25. Aftab, the director of a garment company, is planning to manufacture 4
bags for the utilisation of waste material of one of his garment units. He
has decided that this manufacturing unit will be set up in rural area of
Bihar where people have very less job opportunities and labour is
available at very low rate. He also thought of giving equal opportunities
to men and women. For this he wanted four different heads for Sales,
Accounts, Purchase and Production departments. He gave an
advertisement and shortlisted ten candidates per post after conducting
different selection tests.
Identify and state the next three steps that Aftab has to follow in the
staffing process after shortlisting the above heads.
OR
Novel Tech Ltd, is one of the leading IT companies in India. The
company does mass recruitment each year from different colleges
offering fresher level job to the final year students. This helps in
recruiting the brightest and the best available talent in the educational
institutions.
(a) Identify the method of external source of recruitment adopted by the
company.
(b) State any three merits of using the external sources of recruitment.
26. Green apple Ltd. offers to its employees issue of shares at a price which is 4
less than the market price.
(i) Name and explain the type of incentive offered to the employees to
them.
(ii) Explain one more incentive of the same category.
27. Neeraj, a sales representative of ‘Omida Ltd.’ has changed seven jobs in 4
the last one year. He is a hard working person but is not able to finalise
deals with the customers due to his inadequate vocabulary and omission
of needed words. Sometimes he uses wrong words because of which
intended meaning is not conveyed. All this created a misunderstanding
between him and his clients.
(a) Identify and explain the communication barrier discussed above.

(b) State the category of this communication barrier.
(c) Explain any other communication barrier of the same category.
OR
Huma is working in a company on a permanent basis. As per the job
agreement she had to work for 8 hours a day and was free to work
overtime. Huma worked overtime, due to which she fell ill and had to
take leave from her work. No one showed concern and enquired about her
health. She realized that she was fulfilling Only some of her needs while
some other needs still remained to be fulfilled.
(a) By quoting the lines from the above para, identify the needs of Huma
which she is able to fulfil?
(b) Also explain two other needs of Huma followed by the above needs,
which still remain to be satisfied.
28. Explain briefly any four factors affecting the choice of Capital Structure. 4
29. "Viraj Ltd.' needs to raise funds of Rs. 30,00,000. Its expected earnings 4
before interest and taxes are Rs. 3,00,000. The company wishes to raise
more debt.
The debt is available at an interest of 15% p.a. As a finance manager
advise whether the company should raise funds through debt or through
equity. Give reasons.
30. Udhay purchased a two litre bottle of packed Juice. His wife started 4
vomiting after drinking the juice. Udhay later saw that there were three
insects inside the bottle. He complained about it to the retailer. The
retailer replied that he should contact the manufacturer. Inspite of making
many complaints in the company, he did not get any response.
(a) Identify the two rights of Udhay which have been violated.
(b)Suggest him the appropriate authority where he could file his
complaint.
(c) State any two remedies which Udhay has against the manufacturer of
the packed Juice.
31. Briefly explain any three principles of Scientific Management as given by 6
F.W. Taylor.
OR
Briefly explain any three of the following principles of Management
given by Henry Fayol:
(a) Authority and responsibility
(b) Unity of command
(c) Equity
(d) Discipline
32. Mr. Umesh started a business of manufacturing different spices like 6
Rajma Masala, Shahi Paneer Masala, Chicken Masala, etc. Although, he
is good in planning but performance of his business is always below
average and not does well. He analysed his problems and noticed some
facts about his business. Once the plan is made, managers follow them
blindly. Employees are only carrying out orders and not showing any
initative. Ashutosh, his manager has a tendency to rely on previously tried
and tested successful plans.
Identify and explain the limitations of planning which are referred here by
quoting the lines from the given paragraph.
OR
Mr. Taylor joins as a sales manager of a company manufacturing surgical
products. Being proficient in his work, he knew that without good
planning he will not be able to organise, direct, control or perform any of
the other managerial functions efficiently and effectively. Only on the
basis of sales forecasting, he would assist in the preparation of the annual
plans for its production and sales. Besides, he will have to prepare sales
plan regularly on weekly, monthly, quarterly and half yearly basis. While
preparing the sales forecasts, he undertakes intellectual thinking involving
foresight, visualization and issued judgement rather than wishful thinking
of guess work. Most importantly, all these planning activities will be
meaningful only if they will coincide with the purpose for which the
business is being carried out.
Identify any four characteristics of planning highlighted in the above case
by quoting lines from it.
33. Tanya works as a corporate event coordinator in an event management 6
company. She has been made an overall official incharge for organising a
painting exhibition for of the clients of the company. For ensuring that the
exhibition takes place successfully, she identifies the various activities
involved and divides the whole work into various task groups like
marketing committee, decoration committee and reception committee. In
order to facilitate coordination within and among committees, she
appoints a supervisor of each group. Each member in the group is asked
to report to their respective supervisors and all the supervisors are
expected to work as per Tanya's orders.
(a) Explain the function of management being performed by Tanya.

(b) Describe briefly the various steps involved in the performance of the
function of management as identified in part (a) of the question.
34. What do you mean by price as an element of marketing mix? Explain in 6
brief any five factors determining pricing.
SAMPLE PAPER SET-13
TIME: 3 HOURS MM:80
1 ____________ involves synchronisation of the different actions or efforts of the various units of an 1
organisation
Which level of management is responsible for the welfare and survival of the organisation?
2 1
(a) Top level of management
(b) Middle level of management
(c) Supervisory level
(d) Both (b) and (c)
A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster
3 1
teamspirit. Which principle of management is being highlighted here?
4 External environment trends and changes that may hinder a firm’s performance 1
(a) Opportunities
(b) Strength
(c) Weakness
(d) Threat
5 Foreign companies had extreme difficulty to cut through the beureaucratic red tapism of Indian 1
official permits.Which dimension of business environment does it relate to?
(a) Social
(b) Political
(c) Legal
(d) Technological
6 Positive external trends or changes that may help a firm to improve its performance 1
(a) Opportunities
(b) Strength
(c) Weakness
(d) Threat
7 The manufacturing sector was the worst performer during the lockdown period. Which dimension of 1
business environment does it relate to?
(a) Social
(b) Political
(c) Legal
Read the following text and answer question No.8-11 on the basis of the same 1
These days, the development of a country is also judged by its system of transferring finance to
the sector where it is needed most. To give strength to the economy, SEBI is undertaking
measures to develop the capital market. In addition to this, there is another market in which
unsecured and short term debt instruments are actively traded everyday. These markets together help
the savers and investors in directing the available funds into their most productive investment
opportunity.
What type of function is SEBI performing in the above mentioned paragraph
8
(a) Regulatory
(b) Development
(c) Protective
9. In addition to this , there is another market in which unsecured and short term debt instruments are 1
actively traded everyday. Which market is being referred here
(a) Capital Market
(b) Primary Market
(c) Money Market
(d) Secondary Market
10 Which of these is not a short term debt instrument 1

(a) Commercial bill
(b) Certificate of deposit
(c) Call money
(d) Debentures
11 State true or false- Short term debt instrument are always unsecured. 1
provides a rational approach for setting objectives and developingappropriate
12. 1
courses of action for achieving predetermined objectives.
13 The verbal part of a brand is known as 1

(a) Brand Mark
(b) Trade Mark
(c) Brand Name
.
14 1
Identification and division of work is the first step in the process of
(a) Controlling
(b) Organising
(c) Directing
(d) Staffing
Which of the following statement is incorrect?
15 1
16 This philosophy recognises the decision maker’s need for autonomy . 1

(a) Decentralisation
(b) Centralisation
(c) Delegation
(d) Accountability
17 Which one is a component of sales promotion 1

(a) Advertisement
(b) Rebate
(c) Publicity
(d) Personal Selling
18 The nature of controlling is 1

(a) Prescriptive
(b) Evaluative
(c) Both of the above
The basic role of a firm then is to identify a need and fill it’.Which concept of marketing is it referred
19 1
to
(a)Product
(b) Production
© Marketing
(c) Selling
20 The function of management which is concerned with informing the customers about the firm’s 1
product is
(a) Market Analysis
(b) Standardisation
(c) Promotion
(d) Grading
21 Anul Ltd and Akash Ltd are two competing local diary companies producing ice creams. During 3
the past financial year, Anul Ltd had manufactured 1,00,000 ice creams at a total cost of Rs 5,65,000
and Akash Ltd had also produced 1,00,000 ice creams at a cost of Rs 5,25,000. Which company is
more efficient? Give reason in support of your answer.
Explain ‘Internship training’ and ‘apprenticeship training’ and classify them as on-the-job and off-the-
22 3
job methods of training.
23 “In large organisations, certain pieces are checked at random for quality . This is known as sample 3
checking.”
The above statement depicts a step of a function of management. Name the step referred here and
state the next two steps of that function of marketing.
OR
State three ways in which a good control system helps the organisation
24 State three differences between capital market and money market 3

OR
State three methods of floatation of new issues in primary market.
25 Muskan Electrical Limited is involved in manufacturing generators and invertors in Delhi. But its 4
main sales were from Uttar Pradesh and Haryana where electricity cut was a routine problem. Sales
in Delhi have gone down after privatisation in the electricity sector. But the company has assured
their employees that in spite of recession, no worker will be retrenched from the job.
(a) Name and explain the type of incentive offered to the employees.
(b) Explain one more incentive of the same category.
Someone has rightly said:
26 4
“If you wish to plan for a year, sow
seeds,
If you wish to plan for 10 years,
plant trees,
If you wish to plan for a lifetime,
develop people.”
Identify the two concepts reflected in the above paragraph and state three differences
27 Tata International Ltd. earned a net profit of Rs.50 crores. Ankit the finance manager of Tata 4
International Ltd. wants to decide how to appropriate these profits. Identify the decision that Ankit
will have to take and also discuss any five factors which help him in taking this decision.
“It is a process of making subordinates to act in a desired manner to achieve certain organizational
28 4
goals”
The above statement refers to an element of a function of management. Identify and define the
element and state the other elements of the function of management.
OR
Explain any two style of leadership.
Bhawan is a patient of high blood pressure . He takes medicines on regular basis . This medicine
29 4
comes under the category of prescription medicine which are sold to the customers only on
prescription by a registered medical practitioner . However at many places , this practice is not
followed. Mr. Bhawan is a salesman , he keeps on touring. On one such tour, he purchased medicines
for blood pressure. While purchasing the medicine neither he looked for expiry date nor obtain a cash
memo . Since the expiry date of medicine was already over, it reacted and Bhawan became seriously
ill. This lead to Bhawan incurring a huge amount on his medical treatment. After regaining health he
claimed damages from the medicine manufacturer,.Company refused to pay anything .
(1) What precautions should Bhawan take while purchasing the medicines?
(2) What rights of Bhawan have been infringed by the company ?
It is essentially the preparation of a financial blueprint of an organisation’s future operations. 4
30
What concept is the above statement related to. Identify and define it. Also state its twin objectives
OR
One of the important decisions under financial management relates to the financing pattern or the
proportion of
the use of different sources in raising funds.
What is the above pattern known as? Explain its components
Explain the following principles of Henri Fayol
31 6
(a) Unity of Command
(b) Order
(c) Espirit de corps
OR
Explain the principles of scientific management
A company is manufacturing washing machines. There is a well defined system of jobs with a clear
32 6
and definite authority, responsibility and accountability in the company. But people are not allowed to
interact beyond their officially defined roles. As a result the company is not able to adapt to the
changing business environment. The workforce is also not motivated due to lack of social interaction.
The company is facing problems of procedural delays and inadequate recognition to creative talents.
(d) State the type of organization referred in the above paragraph and explain any three features of
such an organisation
(ii) Suggest how the organization can overcome the problems faced by it.
Sometimes plans to be drawn up take so much of time that there is not much time left for their
33 6
implementation.
What feature does the above statement states about planning. . Explain five such type of features..
OR
“This is the real point of decision making”
The above statement refers to a step in the planning process. Name and explain the step. Also explain
the four steps preceeding the above mentioned steps.
Raman, Joginder, John, Iqbal and Shreya are friends. They are operating different business. Each one 6
34
has his/her own concept regarding operating their business. Raman believes in producing products at
a large scale. Thereby decreasing the average cost of the products and selling it at a reasonable price.
Joginder focuses on providing best quality products because he believes that a customer always
wishes to buy a good quality product. The price of the product is secondary, John is of the belief that
most important aspect of business is sales and so he undertakes aggressive selling & promotional
effort. Iqbal believes that his firm can achieve its goals only by identifying the needs of the customer
& satisfying them better than the competitors. Shreya on the other hand feels that her firm has a
responsibility towards the society as well. So she provides customer satisfaction along with using
techniques which are environmental friendly.
(a) What are the Marketing concepts followed by each of them? Quote from the above lines.
(b) Which philosophy will be effective in the present circumstances ?
SAMPLE PAPER SET-14
TIME: 3 HOURS MM:80
General Instructions :

3. Answers should be brief and to the point
4. Answers to questions carrying 3 marks may be from 50 to 75 words.
5. Answers to questions carrying 4 marks may be about 150 words.
6. Answers to questions carrying 6 marks may be about 200 words.
7. Attempt all parts of question together.
1 Management is equally important to run a political organisation as it is to run an 1

economic organisation. Which feature of management is being reflected in the
given statement?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity
2 Golden Globe is organizing shows internationally for the last thirty years. Their 1
shows have been successful across the globe. Off late, their shows are not as
popular as they were in the past. After analyzing, they are thinking of bringing
necessary changes in their shows to gain popularity. Identify which characteristic
of management is reflected in above situation.
a. Management is dynamic
b. Management is goal-oriented
c. Both (a) and (b)
d. None of these
3 HCL has set up educational institutions in the fields of management, engineering 1

and computer education, in which one-third of the students are girls. Which
responsibility has been fulfilled by the HCL?
a. Economic responsibility
b. Social responsibility
c. Personal responsibility
d. All of these
4 It is mandatory to give a statutory statement on the Mutual Fund Investment 1

documents – “Mutual Fund Investments are subject to market risk. Please read
the offer document carefully before investing.”
Identify the dimension of business environment being highlighted here.
a. Legal environment
b. Social environment
c. Political environment
d. Technological environment
5 Booking of railway tickets through internet from home is an example of economic 1

environment. State true or false.
6 ‘To get the benefit of the hi-tech consumers who made use of 1
computer more in their lives, TATA Sons even launched a website for e-
greetings.’ Which dimension of business environment is reflected here?
(a) Social environment
(b) Economic environment
(c) Political environment
(d) Technological environment
7 . “Change in disposable income of people states ______ environment” 1

8 ________ aims at creating an organizational structure, clarifying jobs and working 1
relationships and effectively deploying resources for the achievement of desired
organizational goals
a. Staffing
b. Organizing
c. Planning
d. Controlling
9 Uranus Limited is a company dealing in metal products. The work is mainly 1

divided into functions including production, purchase, marketing, accounts and
personnel. Identify the type of organisational structure followed by the
organisation.
(a) Functional structure
(b) Relational structure
(c) Divisional structure
10 Mahima Jain is the Senior Manager in the Advisory Services Department of Kodes 1
Ltd. She regularly prepares performance reports of her subordinates as a part of
the appraisal.
Identify the step of the controlling process performed by her.
a. Setting performance standard
b. Measurement of performance standard
c. Comparing actual performance with standards
d. Analyzing deviations
11 ‘If anything goes wrong with the performance of key activities, the entire 1
organization suffers. Therefore, the organization should focus on them’. Explain
the concept.
a. Management by exception
b. Budgetary control
c. Critical Point control
d. Corrective Measure
12 Which one is considered as economic barometer. 1

a. Money market
b. Internet
c. Primary market
d. Secondary Market
13 Charu is a chartered accountant in Prakash Ltd. During the course of meeting with 1
directors, she came to know that as against the previous years, this year company
is going to declare handsome dividend. Often it is observed that when such news
becomes public, then the share market jumps up. Considering it, Charu purchased
large number of company’s shares before this news reached the public. Identify
the type of malpractice used by Charu.
a. Insider trading
b. Forged transfer
c. Both (a) and (b)
d. None of these
14 Pranjal has 500 shares of L&T. L&T comes out with a fresh issue of shares and 1
Pranjal received an offer to buy 1 share of L&T for every 5 shares held by him.
Which method of floating new issue is indicated in this case?
a. Bonus issue
b. Private placement
c. Right issue
d. All of these
15 Nisha, a school bag manufacturer, decided to improve the product of 1
maximization and thus added a water bottle holder to the existing design. Identify
the marketing management philosophy adopted by Nisha.
a. Selling concept
b. Product concept
c. Production concept
d. Marketing concept
16 The advertisement of a travel agency states the following: 1

‘Visit Agra- City of Love’, ‘Udaipur- the city of lakes’ and ‘Mysore- the city of
gardens’.
What is being marketed by the agency through the advertisement?
a. Product
b. Price
c. Place
d. All of these
17 Mansi, a shoe manufacturer for school students, decided to maximize her profit 1
by producing and distributing at large scale and thereby reducing the average
cost of production. Identify the marketing management philosophy adopted by
Mansi.
a. Marketing concept
b. Product concept
c. Production concept
d. Selling concept
18 Unilever has found a new way to make ice creams by using an ingredient called 1
‘Ice Structuring Protein (ISP)’ which is widely found in nature especially, in fishes
which allows them to survive in freezing arctic waters. Combining ISP with
stabilizer technology, it allows making ice creams that don’t melt so easily
thereby making it more convenient for small children and consumers to eat ice-
cream in hot countries. Identify the component of marketing mix being taken into
consideration by the company.
a. Price
b. Product
c. Place
d. Promotion
19 Supriya’s grandmother who was unwell, called her and gave her a gift packet. 1
Supriya opened the packet and saw many crumpled share certificates inside. Her
grandmother told her that they had been left behind by her late grandfather.
As no trading is now done in physical form, Supriya wants to know the process by
adopting which she is in a position to deal with these certificates.
Identify the process.
20 Match the the marketing concepts in column A with their main focus in column B 1
:
COLUMN A COLUMN B
(i) Production concept a. Quality of goods
(ii) Product concept b. Selling goods by hook or crook
(iii) Marketing concept c. Quantity of goods
(iv) Selling concept d. Customer satisfaction
(a) i-c , ii- d , iii – a , iv - b

(b) i-c , ii- a , iii- d , iv – b
(c) i- d , ii – c , iii- a ,iv – b
(d) i- a , ii- b ,iii- c , iv -d
21 3
Your grandfather has retired as the Director of a manufacturing company. At
which level of management was he working? Different types of functions are
performed at this level. State any two functions.
22 3
Distinguish between internal and external sources of recruitment on the basis of
economy, quality of recruitment and time involved.
23 3
“Controlling is a continuous activity in an organization.” Explain.
Or
Explain “measurement of actual performance” as a step of controlling process.
24 3
Give the meaning of both the segments of financial market.
Or
Explain the following money market instruments :
(a) Treasury bill
(b) Call money
25 4
The workers of “Skyhigh Ltd.” are unable to work on new and hi-tech machines
imported by the company to fulfill the increased demand. Therefore, the workers
are seeking extra guidance from the supervisor. The supervisor is overburdened
with the frequent calls of the workers. Suggest how the supervisor, by increasing
the skills and knowledge of the workers, can make them handle their work
independently.
Also, state any three benefits that the workers will derive by the decision of the
supervisor.
26 4
Ram was working as a supervisor with “Aqua Purifier Ltd.” which was producing
water purifiers. The target of the company was to produce 200 water purifiers
every day. His job was to make sure that work goes on smoothly and there was
no interruption in production. To achieve this, he always gives orders and insists
that they are obeyed. He believes that reward or punishment both can be given
depending upon the performances.
Identify and describe the leadership style being adopted by Ram.
27 4
Alisha Ltd. assured their employees that despite of recession, no worker will be
retrenched from the job.
(i) Name and explain the type of incentive offered to the employees.
(ii) Explain one more incentive of the same category.
Or
What do you mean by Laissez-faire leadership? State its features. Name any other
type of leadership style.
28 4
What is meant by “Long-term Investment Decision”? State any three factors
which affect the long term investment decisions.
Or
What do you mean by fixed capital? What are the factors affecting fixed capital
(any 3 )?
29 4
The directors of Mahajan Ltd. have decided to expand the business activities by
increasing the stock of raw materials and finished goods at an estimated cost of
₹50 lakhs. As a finance manager of the company, advise the directors about the
methods open to the company to raise necessary finance for this purpose.
30 4
What kind of cases can be filed in a State Commission?
31 6
Explain the following principles of management:
a) Subordination of individual interest to general interest.
b) Stability of tenure.
c) Espirit de corps
32 6
‘Unforeseen events and changes, rise in costs and prices, environmental changes,
governmental interventions, legal regulations, all affect business plan.’ In the light
of the statement state any three limitations of planning function of management.
Also write any three external limitations of planning .
Or
Explain the steps in the planning process.
33 6
Madhav, Rakesh and Anirudh have decided to start a business of manufacturing
toys. They identified the following main activities which they have to perform:
i) Purchase of raw materials

ii) Purchase of machinery
iii) Production of toys
iv) Arrangement of finance
v) Sale of toys
vi) Identifying the areas where they can sell their toys
vii) Selection of employees.
In order to facilitate the work they thought that four managers should be
appointed to look after Production, Finance, Marketing and Personnel.
a) Identify the function of management involved in the above mentioned

paragraph.
b) Quote the lines from the above paragraph which help you in identifying
this function
c) State the steps followed in the process of this function of management.
34 6
“Though branding adds to the cost, it provides several advantages to the
consumers”. In the light of the statement, state any three advantages of branding
to customers.
Also give the benefits to marketers.
Or
Define the three levels of packaging. Also explain any three functions of
packaging.
SAMPLE PAPER SET-15
TIME: 3 HOURS MM:80
Q.No. Question Marks
1 Management is the process of: - 1

a) Managing the activities of the organization;
b) Controlling affairs of the organization;
c) Administering the departments of the organization;
d) All of the above
2 Which one of the following is not important to management? 1
(a) Developing society.
(b) Disciplining employees.
(c) Inculcating creativity.
(d) Integrating various interest groups.
3 Identify the feature of co-ordination being highlighted in the given statement: 1
“Coordination is not a one time function, it begins at the planning stage and
continue till controlling.”
(a) Coordination ensures unity of action
(b) Coordination is an all pervasive function
(c) Coordination is a continuous process
(d) Coordination is a deliberate function
4 The main objective of an organization is 1

a) Creating benefit for society
b) Motivating the employees
c) Fulfilling economic objective
d) None of these
5 _________ is suitable for filling casual vacancies when the workload is high or 1
when a certain number of permanent workers are absent.
a) Direct recruitment
b) Labour contractors
c) Advertising on television
d) Placement agencies and management consultants
6 _______ are detailed statements about a project which outlines the objectives, 1
rules, etc.
a) Budget
b) Programme
c) Single use plan
d) Policy
7 Which of the following statements is not true? 1
(a) The cost of debt is higher than the cost of equity
(b) The lender’s risk is lower than the equity shareholder’s risk
(c) The interest paid on debt is treated as a tax-deductible expense
8 The products and services should be brought in the market based on which of the 1
following :
a) Needs,
b) Wants
c) Desires and aspirations
d) All of the above
9 Which of the following is not an objective of financial planning? 1
(a) Ensuring enough funds are available at the right time
(b) Ensuring excess availability of funds at the right time
(c) Ensuring smooth business operations
10 Personal objective of management is concerned with 1
a) Increasing capital investment
b) Providing basic amenities
c) Fulfilling social and financial needs of the employees.
d) All of these
11 Planning provides direction is a 1
(a) Importance of planning
(b) Limitation of planning
(c) Characteristics of planning
(d) Method
12 A higher financial leverage ratio indicates that _____. 1
(a) The dependency of the firm on the debt is more
(b) The dependency of the firm on the debt is less
(c) The proportion of equity in the total capital is high
13 "The use of knowledge varies from person to person." Which feature of art is 1
highlighted in this statement.
a) Existence of theoretical knowledge
b) Personalised application
c) Based on practice and creativity
d) All of these
14 Which type of training is provided to the new employees of an organisation in 1
order to familiarise them with the organisational rules and policies, their superior
and subordinate, and so on?
(a) Vestibule training
(b) Apprenticeship training
(c) Internship training
(d) Induction training
15 "Management is a systematic body of knowledge with its own theory, concepts 1
and principles." What nature of management is highlighted here?
a) Systematic body of knowledge
b) Principles based on experiments
c) Universal validity
d) None of these
16 When does the earnings per share (EPS) rise with higher debt? 1
(a) When the rate of return on investment is higher than the rate of interest
(b) When the rate of return on investment is lower than the rate of interest
(c) When the rate of interest is more than the rate of return
17 Packaging is important not only for protection of the product but also serves as 1
________.
(a) Quality product
(b) Complex graphics
(c) Promotional tool
(d) Promotion budget
18 Identify the elements of marketing mix:- 1
(a) Product
(b) Price
(c) Promotion
19 _________ concept is based on those companies who believe in this philosophy 1
that quality of goods or services of good standard can easily attract customers.
(a) Marketing concept
(c) Product concept
(d) Selling concept
20 _________ is the process of classification of products into different groups on the 1
basis of some of its important characteristics.
(a) Grading
(b) Packaging
(c) Standardization
(d) Branding
21 Kartik joins a garment factory as a plant supervisor in Lucknow. He observes that 3
the output of some workers is very low as compared to the standards set for their
performance. On analyzing the reasons for the same, he finds out that a lot of time
of the workers is wasted in getting the requisite materials issued from the store.
Whereas on asking, the store keeper complains that there is no harmony in the
working of the production department as a whole. Every day the workers approach
him at the last minute to procure different kinds of threads, laces, mirrors, buttons
etc. If it is not available in the store then he has to place an order with the
purchase officer. As a result, a lot of time of the workers is wasted. So, in order to
integrate the various production activities, henceforth, Kartik ensures, that the
store keeper is informed well three days in advance about the requisite material.
Consequently, the store keeper is able to keep the materials ready for the workers
every morning in accordance with their requirements. In context of the above case:
1. Identify and explain the quality of management that Kartik has introduced in the
working of the production department as a corrective measure to control the
output of the workers.
2. State any two points highlighting the importance of quality of management

identified in part (a).
Or
Expain the following priniples
1) Scalar chain
2) Division work
22 ‘If anything goes wrong with the performance of key activities, the entire 3
organisation suffers. Therefore, the organisation should focus on them.’ Explain
the statement with a suitable example.
or
Explain the relation planning and controlling.

23 Anushka, an accounts manger in a multinational company says as a manager she 3
integrates its employees towards common objectives. As a manager she not only
tell people in the organization as to what they should do and how they should do
but also see that her instructions are implemented in the proper prospective.
Other than all this whenever she wants to introduce new system of accounting
staff, she explains the purpose, provides the training and motivated with additional
rewards so that her employees cooperate with her.
By quoting the lines Identify the importance of one of the function of management
highlighted in above case?
24 Distinguish between Capital market and money Market on the basis of following- 3
(i) Participants (ii) Duration and (iii)Instruments
25 (a) Name the one method of floatation of issues in the primary market. 4
(b) Name and describe the privilege given to existing shareholders to subscribe to
new issues.
(c) Name the main investors in the primary market.
Or
Explain the difference between Money Market and Capital Market.

26 Identify in the following cases factor affecting the choice of capital: 4
1. Raj an has an option of taking loan from his relatives. These people have
assured him to give loan at a low interest rate. So he decides to use debt as
a source of financing his project. Now he goes to different relatives and
friends to see if he can get a cheaper source of debt with even lower rate of
interest.
2. Prerak Iron Ltd. is thinking of raising finance to further its projects overseas.
For this the company is observing the other companies’ raising of finance.
Their debt-equity ratios are being thoroughly studied by the financial
experts of the company.
3. A company is trying to raise funds after consulting the experts. The owner
of the company has decided to find out the banks which can grant loan
under norms. He will assure that all norms are followed by the company. He
has also decided to gain knowledge about the SEBI guidelines related to
public issues of shares and debentures.
4. The management of a company is very much concerned about the latest
happenings in the stock market. They always want to know whether the
conditions in the stock market are bullish or bearish so that they may know
the feasible time to grow money by issue of shares.
27 Reena purchased one litre of pure desi ghee from a shopkeeper. After using it, she 4
had doubts that it was adulterated. She sent it for a laboratory test which
confirmed that the ghee was adulterated.
State any four reliefs available to Reena if she complains and the consumer court is
satisfied about the genuineness of the complaint
Or
Explain the rights of consumer as per consumer protection act 2019.

28 Mr. Murthy is the HMM of Jay Hind Hospital in Vellore. He has to appoint nurses 4
for the hospital. Since patients in the hospital are of different types, he wants to
find out the candidate's maturity and emotions in dealing with the patients. He
also wants to know about the candidates' ability to make decisions.
Explain two types of tests that Mr. Murthy can use to meet his requirements.
29 Name the element of directing function under which 4
(1) the superiors oversee the activities of their subordinates.
(2) the superiors assure the subordinates that their needs will be taken care of.
(3)the superior attempts to influence the behaviour of people at work towards the
realization of specified goals
(4) the superior share information with the subordinates in order to reach common
understanding.
30 Mr. Nath, a recently appointed production manager of Suntech Ltd., has decided to 4
produce jute bags instead of plastic bags as these are banned by the government.
He set a target of producing 1000 jute bags a day. It was reported that the
employees were not able to achieve the target. After analysis, he found that
employees were demotivated and not putting in their best for achieving the target.
Mr. Nath’s behaviour is good towards the employees. His attitude is always
positive. So, he announced various incentive schemes for the employees like:
1. Installing awards or certificates for best performance

2. Rewarding an employee for giving valuable suggestions
3. Congratulating the employees for good performance
o Identify the functions of management highlighted in the above
paragraph.
o State the incentive under which the employee are motivated.
o State any two values which the production manager wants to
communicate to society by his work and behaviour.
31 Ramit is running an organisation which is beyond the control of 6

government and the motive of the organisation is welfare of the consumers. One
day Sujata comes to his office and tells that her mom. purchased a fridge two years
back. She is no more and the fridge was purchased in her name. However the
warranty period of the fridge is still active. But the company is denying her the
services
1. Which type of organisation is being ran by Ramit?

2. Name two such example of an organisation.
3. Can Ramit help Sujata file a case against the company?
4. Name and explain the consumer right of Sujata has been violated
here?
Or
Explain the meaning of consumer? Explain it’s responsibility as per consumer

protection Act 2019.
32 Aman Chadha started ‘Bulls Eye’ a company for providing cyber security solutions 6
to businesses. Its objective is to prevent, detect and respond to cyber attacks and
protect critical data. He was a hardworking software engineer and an expert in
cyber security. His reputation grew by leaps and bounds as he was not only a
person of integrity but also did his work with utmost honesty and sincerity.The
business started growing day by day.
He was delighted when he was offered a big project by the Ministry of Defence.
While working on the project, he found that the volume of work made it
impractical for him to handle all the work by himself. He decided to expand the
team. The company maintained a close liaison with a local engineering college.
During a campus placement, Ishan and Vrinda were appointed to work for the new
project.
He found the new employees capable, enthusiastic and trustworthy. Aman Chadha
was thus, able to focus on objectives and with the help of Ishan and Vrinda, the
project was completed on time. Not only this Aman Chadha was also able to
extend his area of operations. On the other hand Ishan and Vrinda also got
opportunities to develop and exercise initiative
1. Identify and briefly explain the concept used by Aman Chadha in the
above case which helped him in focusing on objectives.
2. Also, state any four points of importance of the concept identified in
(a) above.
33 Naman and Govind after finishing their graduation under vocational stream 6
decided to start their own travel agency which will book Rail Tickets and Air Tickets
on commission basis. They also thought of providing tickets within ten minutes
through the use of internet. They discussed the idea with their Professor Mr.
Mehta who liked the idea and suggested them to first analyse the business
environment which consists of investors’, competitors and other forces like social,
political etc. that may affect their business directly or indirectly. He further told
them about the technological improvements and shifts in consumer preferences
that were taking place and hence they should be aware of the environmental
trends and changes which may hinder their business performance. He emphasised
on making plans keeping in mind the threat posed by the competitors, so that they
can deal with the situation effectively. This alignment of business operations with
the business environment will result in better performance.
1. Identify and explain the component of business environment highlighted in

the above Para.
2. Explain any other two dimension of business environment .
3. Also state two points of importance of business environment as stated by
Professor Mehta in the above situation.
34 Ganga, a commerce student, argue in a class debate that planning ends with the 6
selection of best alternative. But Parvathy of same class opposed the argument
stating the planning continues even after the selection of best alternative.
a) To whom do you agree?
b) Explain the steps to be followed after the selection of best alternative.
Or
Explain planning process.

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KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION

SAMPLE PAPER SET-1

TIME: 3 HOURS MM:80

2 Tarang enterprises limited is planning to increase its sales by 30% in the 1

(a) Legal and social dimension

13 In order to promote the habit of health and hygiene among weaker 1

PISQAA SOLAR limited is searching options to raise ₹20,000 crores

A. Offer for sale

A. Offer for sale B. Private placement

C. Right Issue D. Offer through Prospectus

A. It helps to raise funds quickly B. It is not expensive

C. Both a & b D. None of the above.

A.₹8000 crores B. ₹4500 crores

C. ₹20,000 crores D. ₹6000 crores

Identity and explain the elements of directing mentioned below

(A) Nistha, a manager, has the ability to influence others to

After gathering and analysing information and doing correct market

He examined the quality and features of the products of the competitors

The above case relates to a concept which is considered to be an

(a) Identify the concept.

TIME: 3 HOURS MM:80

Q.No QUESTIONS Marks

1 On 8 Nov, 2016, Govt of India declared that prevailing currency RS 500 1

2 Keeping in view the changes in the consumer demands and preferences 1

3 Organizing helps in optimum utilization of resources. Which type of 1

4 Alpha Ltd. was manufacturing Auto spare parts. To improve the 1

(a) Critical Point Control

(b) Management by exception

(c) both (a) and (b)

(d) none of these

5 The collection of utilities is known as ________. 1

Sugandha purchased a pack of crayons for her daughter from nearby

Identify the level of packaging being described in the above case.

(a) Primary packaging

6 Delegation provides a ready workforce to take up leading position in a 1

(a) Motivation of employees

7 Through ……… management helps individuals to develop team spirit, 1

8 Which of the following is not a component of specific forces of business 1

(a) Technological conditions

9 Identify the correct sequence of the steps involved in the controlling 1

10 Rohan works as a production manager in Global Enterprises Limited. He 1

Identify the related dimensions of business environment.

(a) Legal and social dimension

a. Client code number

b. Unique order code

c. Permanent account number

d. Depository participant number

17 Arrange the steps involved in trading procedure at the stock exchange in 1

ii) Opening of Demat Account

iii) Placing of order

iv) Execution of order

a) (ii) ; (iv);( iii);(i)

b) (ii) ;(i) ;(iii);(ii)

18 Stock exchange is known as __________ market for securities. 1

(b) Secondary market

(c) Capital market

(d) None of the above

a. Providing liquidity to securities is one of the functions of stock

b. Process of holding shares in electronic form is known as

c. Securities Exchange Board of India performs the regulatory function of

d. Capital market consists of Commercial banks, Development banks and

21 A company X Ltd. Is setting up a new plant in India for manufacturing 3

22 Incorporated in 1990, Raju diary Ltd is one of the leading manufacturers 3