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.

1. Stelo Plastic Makers has decided to include a team of dynamic managers in the
company. For this, they want to judge the pattern of interests of the potential managers.
After giving this test they want to further know how much the candidate is useful for
organisation. They decide to take another test which can measure the existing skills of the
candidates. Rakesh, an exceptional candidate, is given certain document which contains
information like job title, pay, allowances, responsibilities, etc. After the employees join
they are given a very good training.
The company does not want to stop at 'training which is a job related process. They want
to bring a concept which is a career related process. Identify the document which is given
to Rakesh in the above case.
[1]
(A) Contract of employment
(B) Letter of relieving
(C) Experience letter
(D) Job description
2. Mohan runs a security service providers agency. Considering that psychological testing
is a critical step for judging the potential of the prospective candidates for a career in law
enforcement, he uses various types of psychological tests as part of the selection
processes. This is done to ensure that potential new officers are emotionally and
psychologically suited to carry out the requirements of the job. Identify the type of test
that Mohan may use to assess the potential of the prospective candidates.
(A) Aptitude test
(B) Interest test
[1]
3. Feather Loom Ltd. has been doing a great job in the area of clothes designing. Within
two years, the company has (C) Personality test
(D) Intelligence test
reached among the top most performers of the textile industry. The company has made a
lot of profit and decided to distribute its profits to the shareholders who stood with it
during the hard times. Identify and explain the type of decisions mentioned in the above
case.
[1]
(A) Investment decision
(B) Budgeting decision
(C) Dividend decision
4.
(D) Financing decision
For the following two statements, choose the correct option:
Statement I: Consumer organisations play an important role in educating consumers about
their rights and providing protection to them.
Statement II: A consumer should not ask for a cash memo on purchase of goods or
services.
Choose the correct option from options given below:
1. Statement I is correct and statement II is wrong.
2. Statement II is correct and statement fis wrong.
3. Both the statements are correct.
4. Both the statements are wrong.
[1]
5. On the advice of Mudra Advertising Lid, 'Ramaha Automobiles has worked upon
managing public opinion by developing better relations with the masses through
sponsoring cultural and sporting events, maintenance of public parks, etc. Name the
department in the organisation which is generally responsible for performing the above
important task of managing public opinion.
1. Marketing department
2. A separate department created in the firm for the purpose
3. An outside agency
4. Any of the above
'Shrishthi Enterprises" has developed a strong distribution network in India and abroad by
setting up retail outlets and reaching out to the customer through internet selling, Identify
the decision related to the element of market. ing mix being discussed above.
1. Storing and assorting products in order to create time utility
2. Regarding the channels or using intermediaries
3. Both (A) and (B)
4. One regarding branding, packaging and labelling
[1]
'Yamuna Ki Bhujia' offered its products at competitive prices even while offering customer
services like gift pack. aging and free home delivery to become a household name.
Identify the factor affecting the element of marketing mix being discussed above.
(A) Marketing methods used
(B) Objectives
(C) Extent of competition in the market
(D) Product cost
8. Name the process of working with and through others to effectively achieve
organisational objectives by effi ciently using limited resources in a changing environment.
(A) Management
(B) Planning
(C) Organising
(D) Controlling
[1]
9. "The increase in the demand for many Ayurvedic medicines, health products and
services in the past few months, is related to the need for building immunity and an
increased awareness for health care due to the spread of Coro-navirus." Identify the
feature of business environment being described above.
(A) Specific and general forces
(B) Interrelatedness
(C) Relativity
(D) None of the above
[1]
10. Name the function of management which helps in the formulation of future plans, in the
light of the problems that were identified and thus, helps in better planning in the future
period.
(A) Planning
(B) Organising
(C) Directing
(D) Controlling
[1]
11. 'Even where members of a department willingly cooperate and work, a manager has to
coordinate the efforts of different people in a conscious manner' Identify the characteristic
of coordination discussed above.
(A) Coordination ensures unity of action.
(B) Coordination is a deliberate function.
(C) Coordination is a continuous process.
(D) Coordination is an all-pervasive function.
[:]
12. "What distinguishes a successful manager from a less successful one is the ability to
put the principles into pre-tice." 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
[11
(D) Management is an intangible force

Identify the dimension of the business environment illustrated by the picture given above
in which wages are [1]
falling out whereas profits are increasing.
(A) Social environment
(B) Technological environment
(C) Political environment
(D) Economic environment
14.
is the process by which the manager brings order out of chaos, removes conflict among
people over
allotted work or responsibility-sharing and creates an environment suitable for teamwork.
(A) Planning
(B) Organising
(C) Staffing
(D) Controlling
[1]
15. Match the concept of marketing in Column I with their respective definition in column I

(A) (i), (ii), (ji)

(B) (i), (i), (iii)
(C) (iii), (ii), (i)
(D) (1), (in), (1)
[1]
16.
ensures that the heads of separate business units in the organisation are responsible for
profit or
loss of their unit and have authority over it.
(A) Span of management
(B) Divisional structure
(C) Functional structure
(D) Hierarchy of authority
[1]

17. ABC Ltd. has Debt Equity ratio of 3:1 whereas XYZ Ltd. has Debt Equity ratio of 1:1.
Name the advantage ABC
Ltd. will have over XYZ Ltd., when the rate of interest is lower than the rate of return on
investment of the com-
pany.
(A) Trading on equity
(C) Low cost of equity
[1]
18.
(B) Low risk
(d) Greater flexibility
... is used extensively for all types of organisations and mainly for taking charge of
different activities in any enterprise.
(A) Planning
(B) Management
(C) Coordination
(D) Staffing
19. For optimal procurement of funds, a finance manager identifies different available
sources and compares those items in terms of cost and associated risks. Identify concept
highlighted in the above lines.
(a) Financial management.
(b) Financial Decisions

40
OSWAAL CBSE Sample Question Papers, BUSINESS STUDIES, Class-XI|
(d) None of these
(c) Working capital
20. Which of the following statement is false for financial market?
(a) Financial markets facilitate difficulty in the purchase and sale of financial assets ()
Financial markets provide valuable information about securities being traded in the market
1. They provide liquidity to financial assets
2. None of these
1]
1. Identily the level of management whose bask table to integrate diverse elem, ents
and coordinate the activities of Atenient departments according to the overall
objectives of the organisation. Stale any four functions of the level of management
identified.
2. Mukta had been working as an assistant manager with jelly & Jelly Enterprises for
the last 15 years. She was very Muklar amongst her colleagues because of her
commitment and dedication towards work When the manager Penior to her retired,
all her colleagues thought that now Mukta would be promoted. But to everyone's
surprise, senior ant post was filled by an outsider, Neelam. Mukta felt demoralised
and her performance started declining She would absent herself often and could not
meet her targets. Neelam was a good leader who would not only instruct her
subordinates but would also guide and inspire them. She notice Mukta's behaviour
and felt that her performance could be improved. She started involving Mukta in the
decision-making issues related to the organi-sation and made her a part of a high-
level joint-management committee. Mukta was now punctual in office and her
performance started improving Identify and explain the function of management
being performed by Neelam. (3)
3. The Return on Investment (ROI) of a company ranges between 10 and 12% for the
past three years. To finance its future fixed capital needs, it has the following
options for borrowing debt:
Option A: Rate of interest 9%
Option 'B': Rate of interest 13%
Which source of debt, 'Option A or Option B', is better? Give reason in support of
your answer. Also, state the concept being used in taking the decision.
[3]
OR
Stelo Steel 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 and equity ratios
are being thoroughly studied by the financial experts of the company. Identify and explain
the factor affecting the choice of capital structure.
24. "Controlling is an indispensable function of management. Without controlling the best
of plans can go away". Do you agree? Explain any three reasons in support of your answer.
[3]
[3]
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 next step followed by the same in the process.
25. Explain any four factors that can affect the working capital requirements of a company.
[3]
[4]
OR
Explain any four factors that affect the choice of capital structure of a company.
[41
26. 'In an interview with a leading news channel, Mr. Rakesh Kwatra, CEO of 'Get My Job'
has suggested that the companies which want more and more people to apply for jobs in
their organisation should make the process of applying for jobs easier and candidate
friendly'
Name and explain the next two steps which follow the above mentioned step, in the
process of the function of management being discussed above.
[4]
27. Explain the following rights of consumers provided by Consumer Protection Act, 2019:
(i) Right to safety
(i) Right to consumer education
[4
28. Identify and explain the two sources of recruitment which cannot be used when the
existing staff is either insur ficient or does not fulfil the eligibility criteria of the jobs to be
filled.
OR
Identity and explain the elements of directing mentioned below:
(i) Astha, a manager, has the ability to influence others to bring about a change in their
behaviour. (il) Neeraj, a managing director, declares share in the profits to the manager for
their contribution to incrase

profits of the company.

[4}
29. Pramod is a supervisor at Shyam Breads and Biscuits Factory. The factory produces
20,000 packets of bread and biscuits every day. As a supervisor, Promod 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 and working out the poli-dies with the
acceptance of the group? Identify and explain the leadership style being adopted by
Pramod.
AO [4]
30. Dheeraj wants to start a business of selling N-95 masks after the outbreak of the global
pandemic of COVID-19.
Due to 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 Dheeraj in ensuring a low investment in fixed capital requirements.
[4]
31. Kamal, Khan and David are partners in a firm engaged in the distribution of dairy
products in Madhya Pradesh.
Kamal is a holder of Senior Secondary School Certificate from Central Board of Secondary
Education with Business Studies as one of his elective subjects. Khan had done his post-
graduation in Hindi literature and David in Dairy Farming. One day there was a serious
discussion between Khan and David regarding the nature of 'Man-agement as a Science'.
Khan argued that Management was not a science whereas David was of the opinion that
Management was a science. Kamal intervened and corrected both Khan and David about
the nature of Management as a Science with the help of his knowledge of Business
Studies. Explain, how Kamal would have been able to satisfy both Khan and David.
[6]
32. "Planning is worth the huge costs involved?" Do you agree? Explain any five reasons in
support of your answer.
[6
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
[6]
33. 'Advertising and 'Personal selling both are communication tools used by the marketers
to promote their prod-ucts. Yet they differ in their approach. Differentiate between the two
by giving any six points.
[6]
OR
"The elements of marketing mix are popularly known as 4 P's of marketing." Briefly explain
these elements. [6]
34. An important difference between S&M Ltd. and most other companies is that instead of
operating as one large corporation, it operates as 180 smaller companies each focused on
a specific product and area, implying selective dispersal of authority, recognising the
decision-makers' need for autonomy as decision-making authority is pushed down the
chain of command. It enables the company to maintain short lines of communication with
customers and employees, and accelerate the development of talent. Identify the
philosophy that is being followed by S&M Ltd. through which it is dividing the decision-
making responsibilities among the hierarchical levels. State any five points of importance
of the philosophy identified.
[6]

1. Which of the following is true about development?

1. It increases an executive's professional talent.
2. It helps in tackling the complex management working problems.
3. It is wider than training.
4. All the above
[1]
2. Biru Nandan, Chairman of Lalit Group of Companies founded 'Biru University' for
undergraduate and postgraduate courses in diverse disciplines. The Information
Technology department of the Lalit Power Ltd., had few vacancies related to cyber
security. The Human Resource Department of the company decided to recruit fresh
engineering graduates from 'Biru University' for the same.
Identify the type of source of recruitment.
1. Advertisement
2. Employment exchange
3. Placement agencies and management consultants
4. Campus recruitment
[1]
3. Real Tech Builders has to deliver the flats to its buyers for possession on time. Due to
this, there is a sudden increase in workload. Therefore, the company needs to arrange
workers to work at the sites at a short notice. Which source of recruitment may be used by
the company to tap the casual vacancy?
(A) Direct recruitment
(B) Advertisement
(C) Recommendation of employees
(D) Employment exchange
[1]
4.
.... is the process of dividing work into manageable activities and then grouping the
activities which are similar in nature.
(A) Coordination
(B) Departmentalisation
(C) Organisation structure
(D) Delegation of authority
[1]
5. Even though the political conditions vary from country to country, they impact the
sentiment of an investor in the business, if the instability of the political conditions cause
uncertainty and make it difficult for him to predict the future. Which feature of the business
environment is being highlighted in the above statement?
(A) Specific and general forces
(B) Dynamic nature
(C) Relativity
(D) Ail the above
[1]
6. For the following two statements, choose the correct option:
Statement I: The objective of SEBI is to prevent trading malpractices.
Statement II: SEBI regulates and develops a code of conduct and fair practices for
intermediaries.
Choose the correct option from options given below:
1. Statement I is correct and statement II is wrong.
2. Statement II is correct and statement I is wrong.

1. Both the statements are correct.

2. Both the statements are wrong.
[1]
7. Which product-related decision is concerned with providing detailed information about
the product on its pack-
age?
(A) Branding
(B) Packaging
(C) Labelling
(D) Both branding and packaging
[1]
8. Arrange the following steps in the process of organising in the correct sequence:
(i) Assignment of duties (ii) Departmentalisation
(iii) Identification and division of work
(iv) Establishing reporting relationship Choose the correct option:
(A) (i) ; (i) ; (iv) ; (iii)
(B) (ji) ; (ii) ; (i) ; (iv)
(C) (ji) ; (ii) ; (iv) ; (i)
(D) (in) ; (in) ; (i) ; (iv)
[1]

Identify the dimensions of the business environment illustrated by the picture given above.
(A) Social environment
(C) Political environment
(B) Technological environment
(D) Economic environment
[1]
10. Rajni Auto Manufacturers have decided to give a special privilege to the existing
shareholders to subscribe to the new issue of shares where they will be given shares
according to the proportion of shares held by them. The company always gives special
treatment to loyal stakeholders. Last year, the company was dealing through the capital
market where both the buying and selling of securities were taking place. The owner of the
company is a man of ethical business. He recently wrote an article about the watchdog of
stock market. The article gained a lot of popularity and now is part of the curriculum of
MBA students.
Which method of floatation was used by Rajni Auto Manufacturers?
(A) Right issue
(B) Private placement
(C) Offer for sale
(D) E-IPOs
[1]
11. 'Pushpanjali 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 inspite 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
'Pushpanjali 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
'Pushpanjali Ltd. had forgotten to take one of the most important decisions related to the
product.
What decision should 'Pushpanjali Ltd.' take so that its customers are able to identify its
products in the market?
AD [1]
(A) Branding
(C) Packaging
(B) Pricing
(D) Labelling

12. Ultra Televisions Lid.' is offering its 90° TV sets at a discount of ? 15,000 for a period of
one month starting from
1st March, 2019.
Identify the sales promotion activity used by 'Ultra Televisions Ltd.'.
(A) Rebate
(B) Free Sample
[1]
(C) Coupon
(D) Refund
13. 'Anyone can be called a manager irrespective of the educational qualification
possessed." Identify the characteris.
tic of the profession that management does not fulfil in the statement being discussed
above.
(A) Ethical Code of conduct
(B) Professional association
(C) Restricted entry
(D) Service motive
14. Kumar wanted to purchase a fuel efficient car having the latest standards regarding
minimisation of pollution
[11
He saw an advertisement offering such a car and visited the showroom of the company
wherein the car was dis played. In his discussion, the marketing manager told him that the
company is providing credit facilities, mainte. nance services and many other effective
services which are helping in bringing repeat sales and developing brand loyalty.
Identify the 'marketing function' which the marketing manager was discussing with Kumar.
(A) Standardisation
(B) Grading
(C) Customer Support Services
(D) Product designing and development
15. Which of the following is not an element of social environment?
(A) Birth and death rate
(B) Constitution of the country
(C) Population shifts
(D) Life expectancy
[1]
16. Which of the following feature of management involved in managing an enterprise are
common to all organisa-tions whether economic, social or political ?
1. Management is a goal-oriented process.
2. Management is all pervasive.
3. Management is a continuous process.
4. Management is a group activity.
17. Which of the following is the function of low level management?
1. To integrate diverse elements and coordinate the activities of different
departments.
2. To the business environment and its implications for the survival of the firm.
3. To be responsible for implementing and controlling plans and strategies developed
by top management.
4. To interact with the actual work force and pass on instructions of the middle
management to the workers. [1]
18. Your mother purchased a washing machine for 7 10,000 from an authorised dealer of
the manufacturer with a verbal guarantee that the machine will be replaced with a new
one if any of its parts becomes defective within 3 months from the date of purchase. The
motor of the machine was burnt within 15 days of its purchase. On com-plaining, the seller
refused to replace the machine. Name the redressal agency under Consumer Protection
Act, 2019 where your mother can file the complaint.
(A) District Commission
(B) State Commission
(C) National Commission
(D) None of above
[1]
19. Which of the following statement is false regarding financial market?
1. Financial markets facilitate difficulty in the purchase and sale of financial assets
2. Financial markets provide valuable information about securities being traded in the
market.
3. They provide liquidity to financial assets.
4. None of these.
[1]
20. .....
............ is an institution or organisation, which holds securities in electronic form, in which
trading is done.
(A) Stock Exchange
(B) SEBI
(C) Depository
(D) None of these
[1]
21. Tata International Ltd. earned a net profit of 250 crores. Ankit, the finance manager of
Tata International Ltd., wants to decide how to appropriate these profits. Identify the
decision that Ankit will have to take and also dis cuss any two factors which help him in
taking this decision.
[3]
22. Explain the two concepts which are apart of the exercise which would reveal whether
a company is understaffed, overstaffed or optimally staffed.
OR
'Human Resource Management is a wider concept than staffing.' Justify.
[3]
23. Kamal is working as a gang boss in the assembly unit of 'Sokia Ltd.', a laptop
manufacturing company. He supervises the work of 10 trained workers who perform
various activities related to the assembly of laptops. One day when he was supervising the
work of his workers, he told Ashok, a worker that his work could be improved.

Sample Question Papers

45
Ashok interpreted the comments of Kamal as that his work was not good.
Identify and explain the type of barrier to effective communication in this case.
24. Explain any three features of business environment.
3
[3]
OR
Explain any three features of 'demonetisation'.
[3]
1. One of the functions of Securities and Exchange Board of India is 'Promotion of fair
practices and code of conduct in securities market. State the category to which
this function belongs and state any three other functions under this category.
2. Explain "Vestibule Training' and 'Apprenticeship Programme as methods of training.
OR
Explain briefly 'transfers' and 'promotions' as internal sources of recruitment.
27. Enumerate any four responsibilities of a consumer under Consumer Protection Act,
2019.
4
OR
State any four reliefs available to the consumer, if the court is satisfied about the
genuineness of the complaint. [4]
28. Vikas was the Chief Operating Officer of 'Yalet Ltd.', a company providing advanced
software solutions to Indian Defence Services. They had been carrying on business
successfully for the last 12 years and earning enough prof-its. But for the last one year,
they realised that though the business is getting big orders which are being fulfilled on
time, even then the revenues kept on decreasing. Vikas was not able to find out where the
problem was. He started keeping a close check on the progress of activities as he could
sense that something was wrong. He wanted to take some action before any major
damage could ensue. Vikas appointed a cyber security expert who monitored the
company's processes and found out that the computer operator was deleting the entries
from the computers and pocketing the revenues. He was caught and handed over to the
police. This created an atmosphere of order and discipline in the organisation and helped
in minimising dishonest behaviour on the part of the employees.
(i) Identify the function of management highlighted in the above paragraph. (ii) Explain any
three other ways in which this function of management may help the organisation.
[4]
29. 'Smart Stationery Ltd. wants to raise funds of © 40,00,000 for its new project. The
management is considering following the mix of debt and equity to raise this amount:
[4]

Other details are as follows:

Interest rate on debt
9%
Face value of equity shares
⅔ 100 each
Tax rate
30%
Earning Before Interest and Tax (EBIT) ₴ 8,00,000
(g) Under which of the three alternatives will the company be able to take advantage of
trading on equity? (ii) Does earning per share always rise with increase in debt?
30. 'Entertainment India Ltd. has been incorporated with the objective of entertaining
people by organising festivals, programmes and other similar events depicting the rich
cultural heritage of the country. The company management has renowned personalities
from the field of art, literature and culture. They decided to give a platform to young
budding musicians, poets and artists. The company decided its organisational structure by
grouping similar jobs together. Thereafter, the heads of different departments were also
appointed. Nisha, one of the heads, did an analvsis of the number, type and qualification
necessary for people to be appointed. The information generated in the process of writing
the job description and the candidate profile was used to develop 'Situations vacant
advertisement. This was published in print media and flashed in electronic media. This
brought in a flood of response.
Explain the other four steps which Nisha has to perform after candidates have applied to
complete the process
[4]
being discussed above.
31. Explain the following techniques of scientific management;
[6]
(i) Time study;
(ii) Motion study;
(til) Functional foremanship.

Explain the following principles of general management:

4) Division of work
[6]
(ii) Authority and responsibility (iii)Discipline
32. Agrotech Fertilisers Limited has planned to set up a plant for manufacturing urea
fertiliser which has very high market potential as there is excess demand as compared to
supply. It is a capital intensive project involving an investment of ° 2,000 crores. Major
portion of this investment will be in fixed capital. Financial institutions prefer to finance
such a project because it is in the core sector. Since market for urea fertiliser is quite
high, it is sold mostly on a cash basis.
What is the most desirable debt/equity ratio for the company?
On what basis should investment in working capital be determined ?
33. Differentiate between Functional structure and Divisional structure.
==
OR
Besides 'Effective Management' and 'Employee Development, delegation helps the
organisation in different ways. Explain any four such ways.
[6]
34. 'E-Solutions Ltd. started its operations in the year 2000. At the time of its inception, the
company had only 10 employees with two departments, a Production Department and an
Administration Department. The products supplied and the services provided by the
company started gaining popularity over the years. The management had faith in the
abilities of the employees and thus they allowed them freedom of action. The management
rec-ognised that the decision-makers at different levels of the organisation need to be
given more autonomy. They took a policy decision that there will be less control of
superiors over subordinates. This increased the role of the subordinates in the organisation
and now they were in a position to take numerous as well as important decisions. As a
result, its business has diversified into many areas. Presently, it has its operations
throughout the country with seven branches overseas. Its organisational structure has now
changed into divisional structure and ten thousand people are working with the company.
(i) Identify the concept of management which helped the company to diversify into many
areas and branches abroad.
(ii) Explain any five points of importance of the concept identified in (i) above.
[6]