HALF YEARLY EXAMINATION

Session - 2018-19
Class - XII
Subject – Business Studies
Time: 3 Hrs. M.M.: 80

General Instructions
a) Answer to questions carrying 1 mark may be in one word or one sentence.
b) Answer to questions carrying 3 marks may be from 50-75 words.
c) Answer to questions carrying 4-5 marks may be about 100-150 words.
d) Answer to questions carrying 6 marks may be about 200 words.
e) Attempt all the parts of a question together.

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1. PM Narendra Modi re-iterated his government commitment to One Rank- 1
One Pension(OROP)Scheme but did not agree to all demands except to
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OROP.The OROP envisages a uniform pension for defence personnel who
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retire in the same rank with the same length of service, irrespective of the
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date of retirement.
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Which type of plan is it?

2. „Superfast Limited‟ specialises in fast delivery of the grocery items and 1
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helps the business firms make sure that the perishable goods are made
available to the customers at the right time, at the right place.
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State with reason, whether the working capital requirements of „Superfast

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Limited‟ will be high or low?

3. Kamakshi purchased a facewash. The label contained no information 1
regarding its usage or the type of skin it was suitable for. On using the face
wash, she faced the problem of redness and itching on her face. She
contacted the customer care only to be informed by them that the face
wash was not suitable for oily skin, which was Kamakshi‟s skin type.
Which right of Kamakshi is violated by the company?
4. The National Consumer Disputes Redressal Commission issued a notice to 1
Nestle seeking its response after government filed a suit in the Commission
against unfair trade practice and hazardous goods being sold by the
company. Which dimension of business environment is highlighted here?

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5. Management has to see that tasks are completed and goals are achieved 1
with the least amount of resources at a minimum cost.” Identify the two
related concepts of management.
6. Name the term used for an electronic entry form of holding and transferring 1
securities which eliminates the problem of theft, forgery, transfer delays and
time involved in the paper work.
7. Mr. Mukesh is an old employee of Infosys. In recognition of his good 1
performance, as an incentive, he has been given a choice to buy the shares
of the company at an amount less than the market price.
Identify the incentive being given to him.
8. Aflatoon Company, is planning to organise an exhibition showcasing its 1
large range of useful „Self-Defence Devices‟. The company wishes to have

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a huge gathering of potential customers and media to cover the event.
Identify the promotional tool, through which a huge gathering of prospective
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customers can be reached, informed and persuaded to attend the event.
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9. Samiksha and Amit were both working in a multinational 3
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company.Samiksha was a hard worker and was soon quite proficient in her
work. At the time of performance appraisal, the performance of Samiksha
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was judged better than Amit.Even then, their boss Mr. Raj Kashyap decided
to promote Amit, stating that being a female Samiksha would not be able to
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handle the complications of higher post.

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(i) Identify and explain the principle of management which was not
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being followed by the company.

(ii) Quoting lines from the para, identify any one value ignored by
the company.
10. A recent rate cut in the interest on loans announced by the banks 3
encouraged Amit, a science student of Progressive School to take a loan
from State Bank of India to experiment and develop cars to be powered by
fuel produced from garbage. He developed such a car and exhibited it in
the Science Fair organised by Directorate of Education. He was awarded
first prize for his invention.
Identify and explain the dimensions of business environment discussed in
the above case.

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11. Rahul, a manager, wants to make training of employees to be easier. He 3
wants that his employees should focus on limited range of skills only.
Further, he wants to maximize efficiency by avoiding duplication of efforts.
By quoting lines, which type of organisation structure would you
recommend for his organisation? Give any two reasons in support of your
answer.
12. “To protect the interest of investors and to promote the development of 3
securities markets are the main objectives of SEBI.” Elaborate.
13. A Director of a company revealed to his broker friend, information about the 3
bonus issue that the company was going to make after a fortnight .The
broker was engaged in speculation and expected price rise of securities of
the company. He purchased a huge lot of the company‟s securities and sold

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off after the bonus issue was made. As a result, the broker friend earned a
huge profit. As a token of gratitude, the broker also gave a substantial share
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from the profit earned to his friend, the Director.
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(a) Name the malpractice highlighted above.
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(b) Which function of SEBI prohibits such practice?

(c) State any other function of SEBI discussed in category (b)
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14. Give two positive effects and two negative effects (if violated) of the 4
following principles of management:
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 Unity of direction
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 Stability of Personnel
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15. A saree manufacturing firm is facing competition from new entrants. In 4

order to face the competitors, the manager decided to add a new product
line of „Designer Sarees‟ to attract consumers of higher income group. He
spent money on decoration of showroom and allocated 5 crores for the new
product line.
(a) Identify and explain the type of plan listed in the question.
(b) Explain the step of planning process discussed in the above case
study.
(c) Discuss the next two steps of the process.
16. „This approach is applicable in the case of unsought goods like life
insurance, vaccum cleaner, firefighting equipment‟s including fire

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 extinguishers. These companies are seen having a strong network of sales
force. This concept is applicable for the firms having over production
capacity in which their goal is to sell what they produce than what the
customer really wants.‟
In context of the above case answer the following questions:
(a) Identify the concept being referred to in the above paragraph in the
context of philosophies.
(b) State the means and ends of the type of marketing concept as
identified in part of the question.
(c) What type of promotion techniques will these companies use? 4
17. Taylor was an ardent supporter of use of scientific methods of production in 4
business. He conducted various experiments during his career and

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developed various techniques to increase production and efficiency at the
shop floor level. Explain the work study techniques given by him that help in
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developing standards to be followed throughout the organization.
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18. Define Management. Explain the features that establish it as a social 4
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science.
19. Shriram spinning Mills has a requirement of modernising some weaving 4
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machines. The company plans to raise Rs.200 crores as additional capital.

Mr. Gupta the finance manager of the company, has to decide on the
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capital structure of the funds. Some facts brought to the notice of the
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Finance Manager are-

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 The cloth market is very competitive and the cash flows are very
unstable.
 The management wants to retain high control over the business.
 With the exports to UK, opening the market looks very positive.
Mr. Gupta has to decide various sources of funds. The above disclosure of
facts by the company to the Chief Financial Officer leads to various factors
which decide how much to finance from equity and how much to finance
from debt.
(a) Quoting the lines, explain three such factors from the above
discussion.
(b) In your opinion, what should Mr. Gupta do to increase return on

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 equity?
20. The machines of Textiles India Limited have become obsolete because of 5
technological advancements. The company wants to upgrade its machines
which requires huge investment. The company approaches primary market
to meet its requirement by the way of issuing debentures. However, the
company concealed the fact about its existing high level fixed operating
cost.
(a) Identify the kind of decision, which the company undertook when it
decided to upgrade its machines.
(b) Discuss any two methods through which the company can raise
money from the primary market.
(c) Identify the two values which are ignored by the company.

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21. Nimit, Vikram and Parth are good friends. They have planned to set up a 5
business manufacturing paper, manufacturing books for children in the
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remote areas of West Bengal and to sell the goods in the cities only on
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cash basis. For the welfare of the employees, it decided to set up fitness
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centres for physical fitness and recreation. They contacted renowned

builder to construct flats for the employees in the outskirts of the factory and
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a local school with the help of the state government for the children of the
employees and the locals.
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(a) One of the functions of management is highlighted in the question.

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Name the function by quoting the line from the question.

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(b) Name one of the type of the function of management identified in the
above question(a).
(c) Suggest with reason the type of organisation structure you would
recommend.
(d) State any two values that have been achieved in the above case.
22. Naman and Govind after finishing their graduation under vocational stream 5
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

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 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.
(a) Identify and state the component of business
environment highlighted in the above Para.
(b) State any two features of business environment as
discussed by Professor Mehta with Naman and Govind.

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(c) Also state two points of importance of business environment
as stated by Professor Mehta in the above situation.
23.
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A textile manufacturing company has the following main jobs:
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 Manufacturing
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 Finance
 Marketing
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 Personnel

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Research and Development

(a) Which type of organisation structure will you choose for this type of
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company and why?

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(b) State any four advantages this structure offers to the organisation.
24. Vasvi was a student of Commerce in class XII. Her father was a farmer, 6
who grew different varieties of wheat and was well versed about various
aspects of wheat cultivation. He was also selected by the government for a
pilot-project on wheat cultivation. As a project she decided to study the
feasibility of marketing good quality wheat at reasonable price. Her father
suggested her to use internet to gather customers' views and opinions. She
found that there was a huge demand for organic-packed wheat. She knew
that there were no pre- determined specifications in case of wheat, because
of which it would be difficult to achieve uniformity in the output. To
differentiate the product from its competitors, she gave it the name of

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 'Mahan-organic-wheat' 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.
25. Aman a degree holder in Entrepreneurship came to know about Piplantri 6
Village located in Rajasthan, where in 2006 an initiative was started, in
which 111 trees are planted every time a girl child is born.
To keep termites away from the trees the villagers have planted 2.5 million
Aloe Vera plants around the trees. This has turned the village into an oasis,
as the planting of the trees led to higher water levels.
Aman decided to visit the village to start a business unit, for the processing

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and marketing of Aloe Vera into juices, gels and other products.
However, on visiting village Aman found that the villagers were suffering
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exploitation at the hands of the local merchants who were engaged in
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unscrupulous, exploitative trade practices like hoarding and black marketing
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of food products and also selling unsafe, adulterated products to the

villagers.
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After looking at their plight, instead of a business organisation, he decided

to set up an organisation for the protection and promotion of the consumer
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interest in the villagers.

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State the functions that the organisation established by Aman will be

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performing(any six points)

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