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.
Identify the related dimensions of business environment.
(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
(d) None of the above
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.
(a) Packaging and labelling
(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.