Vidya Sanskaar Pre –University College

Machohalli Gate, Magadi Main Road, Bengaluru – 560091

First Preparatory Examination December-2023
Scheme of valuation
Class: II PUC Subject: Business Studies (27)
Time: 3Hr 15 Mins. Maximum Marks: 80

Section-A
I One marks.
1. Policy formulation is the function of
(a) Top Level managers (b) Middle Level managers
(c) Operational Management (d) All of the above.
2. F W Taylor was a
(a) Social scientist (b) Mining engineer
(c) Accountant (d) American mechanical engineer.
3. Strategy is derived from
(a) Policy (b) Objectives (c) Method (d) Rule.
4. Ganga Ltd., is a company dealing in metal products. The work is mainly divided into
functions including production, purchases, marketing, Finance and Human resources. Identify
the type of organisational structure followed by the organisation.
(a) Functional structure (b) Divisional structure
(c) Formal structure (d) Informal structure.
5. Which of the fallowing is the not an element of marketing mix?
(a) Distribution (b) Product (c) Target market (d) Price.

II Fill in the blanks.

6. Scalar chain is the formal lines of authority from the highest rank to the lowest rank in
the organization
7. Budget is a statement of expected results expressed in numerical terms.
8. Motivation is the process of making subordinates to act in a desired manner to achieve
certain organisational goals.
9. Financial planning. refers to the preparation of a financial blue print of an organization’s
Future operations.
10. The part of the seal that is given legal protection is called Trade mark

III Match the following.

11. a) Managing director Characteristics of management.
b) Accountability Answerability for outcome.
c) Recruitment Staffing process.
d) Controlling Management function.
e) Publicity Promotion Tool

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IV Answer in One word/one sentence each.
12. Mention any one function of management.
Planning, organising (any one).
13. What is the meaning of development in staffing process?
Career advancement or Development refers -is a process of learning and growth. It helps
in the overall growth of the employee.
14. Name the theory evolved by Abraham Maslow.
Maslow’s Hierarchy needs theory.
15. A company wants to establish a new unit in which a machinery worth Rs. 10 lakh is
involved. Identify the type of decision involved in financial management.
investment decision.
16. In which year the consumer protection Act was passed?
1986.

Part-B
V Two marks.
17. Define Management.
According to Harold Koontz and Heinz Weihrich “Management is the process of
designing and maintaining an environment in which individuals, working together in
groups, efficiently accomplish selected aims.”
18. State any two principles of Management contribution by Henri Fayol.
Division of work, Authority and responsibility. (Any two principles of Henry Fayol).
19. What is ‘Method’ under plan?
Prescribed ways in which task has to be performed considering objective is called
method.
20. State any two differences between Formal and Informal organisation

Basis Formal organization Informal organization

Meaning Structure of authority Network of social
relationships created by the relationships arising out
management of interaction among
employees
Origin Arises as a result of Arises as a result of social
company rules and policies interaction
Authority Arises by virtue of position Arises out of personal
in management qualities
21. State two internal source of Recruitment.
Internal source 1. Promotion 2 transfer.
22. State any two psychological barriers to communication
Perception, distrust, emotion, filtering (Any two).
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 23. Write any two limitations of Controlling.
1 Difficulty in setting quantity standards,2 little control.
24. State the twin objectives of financial planning.
Ensure availability, firm does not raise resource funds unnecessary.
25. Give two examples for convenience goods.
Examples of such products are ice creams, medicines, newspaper, and
stationery
tooth paste etc….
26. State any two responsibilities of consumer.
1Be aware about various goods and services available in the market and wise choice to be
made.
2 Buy only standardised goods as they provide quality assurance.

Part C
VI Four marks
27. Briefly explain the principles of scientific management.
1 Science not rule of thumb.
2 Harmony not Discard.
3 Co-operation, not individualism.
4 Development of each and every person to his or her greatest efficiency and prosperity.
28. Explain the various dimensions of business environment.
1 Economic Environment:
2 Social Environment:
3 Technological Environment:
4 Political Environment:
5 Legal Environment:
29. Explain any four features of business environment.
1 Totality of external forces:
2 specific and general forces:
3 Inter-relatedness:
4 Dynamic nature
30. No enterprises can achieve its objectives without systematic planning. Do you agree
with this? Give any four importance in support of your answer
1 Planning reduces the risks of uncertainty:
2 Planning provides direction: -
3 Planning promotes innovative ideas:
4 Planning facilitates decision making:

31. Suraj is working in an organisation. After every six months, his manager transfers him
from one department to another so that he may gain a broader understanding of all the
departments of the organisation.
On the Job Methods will be used:
 Apprenticeship programmes: Apprenticeship is the formalized method of training; it combines
class room education with on the job work under supervision.
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 Coaching: In this method, the superior guides and instructs the trainee as a coach.
 Internship TrainingSelected candidates carry on regular studies for the prescribed period. to
acquire practical knowledge and skills.
 Job rotation: This kind of training involves shifting the trainee from one department to another or
from one job to another. This enables the trainee to gain a broader understanding of all parts of the
business and how the organization as a function.
Or Job Rotation with other methods.

32. Briefly explain the importance of controlling.

1 Accomplishing organisational goals.
2 Judging accuracy of standards.
3 Making efficient use of resources.
4 Facilitating coordination in action.

33. What do you call the capital needed for day-to-day operations? State any three factors
affecting such capital needs.
Such capital is called working capital.
 Nature of Business:
 Scale of Operations:
 Business Cycle:
 Seasonal Factors:
 Production Cycle:

34. Briefly explain any four factors affecting price determination

1 Product Cost
2 The Utility and Demand
3 Extent of Competition in the Market
4 Government and Legal Regulation
5 Pricing Objectives
35. State any four differences between advertising and personal selling.
o 1 Impersonal person
o 2 Inflexible Flexibly
o 3 large Limited
o 4 Direct feed back Immediate feed back
36. Briefly explain any four rights of consumer.
 Right to Safety
 Right to be informed
 Right to Choose
 Right to be heard
Part D
VII Answer in 20-25 sentences each (Any 3,Each carry Eight marks)
37. Explain the characteristics of management.
 Management is a goal-oriented process:

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  Management is all pervasive:
 Management is multidimensional:
a Management of work:
b Management of people:
c Management of operations:
 Management is a continuous process:
 Management is a group activity:
 Management is a dynamic function
 Management is an intangible force:
38. The role of organization is important for a business organization to successfully
achieve its goals explain the importance of organization to justify this statement.
1. Benefits of specialisation:
2. Clarity in working relationships:
3. Optimum utilization of resources:
4. Adaptation to change:
5. Effective administration:
6. Development of personnel:
7. Expansion and growth
39. Describe the steps involved in selection process.
Process of Selection:-
1Preliminary Screening
2Selection Tests
Important Tests Used for Selection of Employees:
(a) Intelligence Tests: l.
(b) Aptitude Test:
(c) Personality Tests.
(d) Trade Test:
3. Employment Interview.
4. Reference and Background Checks:
5. Selection Decision:
6. Medical Examination:
7. Job Offer:
8. Contract of Employment:
40. what is supervision? Explain the importance of supervision.
1. Supervisor maintains day-to-day contact and maintains friendly relations with workers. A good
supervisor acts as a guide, friend and philosopher to the workers.
2. Supervisor acts as a link between workers and management. He conveys management ideas to the
workers on one hand and workers problems to the management on the other.
3. Supervisor plays a key role in maintaining group unity among workers placed under his control.
He sorts out internal differences and maintains harmony among workers.
4. Supervisor ensures performance of work according to the targets set. He takes responsibility for
task achievement and motivates his workers effectively.
5. Supervisor provides good on the- job training to the workers and employees.
6. Supervisory influencing the workers in the organisation. A supervisor with good leadership
qualities can build up high morale among workers.
7. A good supervisor analyses the work performed and gives feedback to the workers.

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41. Explain the importance of personal selling to customer and society.
Customers
1 Help in identifying need
2 Lasted market information
3 Expert advice
4 Induce customer

Society
1 Convert latent Demond
2 Employment opportunity
3 Mobility of sales people
4 Product standardisation

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