KENDRIYA VIDYALAYA SANGATHAN, JAMMU REGION

SAMPLE PAPER SET-3

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. 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.
6. Answers to the questions carrying 6 marks may be about 200 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
(a) Primary packaging
(b) Secondary packaging
(c) Transportation packaging
(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