Series RBS–DS2 Code No.

RSPL /3
Candidates must write the Code on
Roll No. the title page of the answer-book.

 Please check that this question paper contains 19 printed pages.

 Code number given on the right hand side of the question paper should
be written on the title page of the answer-book by the candidate.

 Please check that this question paper contains 34 questions.

 Please write down the Serial Number of the question before

attempting it.

Business Studies

Time Allowed: 3 Hours Maximum Marks: 80

General Instructions:

(i) This question paper contains 34 questions.

(ii) Marks are indicated against each question.

(iii) Answers should be brief and to the point.

(iv) Answers to the questions carrying 3 marks may be from 50 to 75 words.

(v) Answers to the questions carrying 4 marks may be about 150 words.

(vi) Answers to the questions carrying 6 marks may be about 200 words.

(vii) Attempt all parts of the questions together.

RSPL/3 1 P . T .O.
 1. KTX Group is rolling out an initiative to help create wealth for its

employees through the implementation of the Employee Stock Option.

Which of the following importance of management is highlighted

above?

(a) Management helps in achieving personal objectives

(b) Management helps in the development of society

(c) Management creates a dynamic organisation

(d) Management increases efficiency 1

2. According to the technique of Scientific Management, “Differential Piece

Wage System”, how much more will a worker making 60 units earn

as compared to a worker making 49 units, if the standard output

per day is 50 units and those who make standard output or more

than standard get ` 75 per unit and those below get ` 65 per unit.

(a) ` 4500 (b) ` 3185

(c) ` 1315 (d) ` 3250 1

3. Use of ‘Technical Jargon’ is which type of communication barrier?

(a) Organisational barrier

(b) Semantic barrier

(c) Psychological barrier

(d) Personal barrier 1

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 4. Sharma Enterprises opts for different ways to give training to their

employees, i.e., higher level management orientation programmes and

lectures and seminars.

What type of Planning is involved within the above-mentioned lines?

(a) Strategy (b) Policy

(c) Method (d) Procedure 1

5. Organisation is same for the management as __________ is for the

human body.

(a) Structure of bones (b) Structure of mind

(c) Thinking of mind (d) Respiration system 1

6. Employment exchanges are generally the main agencies of __________.

(a) Private employment (b) Public employment

(c) Professional employment (d) None of the above 1

7. What a manager has to apply for selecting the best possible course

of action?

(a) Algebra

(b) Calculus

(c) Permutations and combinations

(d) Luck 1

RSPL/3 3 P . T .O.
 8. Controlling is:

(a) Forward looking

(b) Backward looking

(c) Both forward and backward looking

(d) Neither forward nor backward looking 1

9. Which of the following statements is incorrect with respect to dividend

decision?

(a) It is an important decision that every financial manager has to

take related to the distribution of dividend.

(b) Dividend is that portion of profit which is distributed to

shareholders.

(c) The decision regarding dividend should be taken keeping in view

the overall objective of maximising shareholder’s wealth.

(d) Dividend constitutes the future income re-investment as retained

earnings increases the firm’s future earning capacity. 1

10. EBIT refers to:

(a) Earning Before Interest and Tax

(b) Earning Before Income and Tax

(c) Earning Before Investment and Tax

(d) Earning Before Instalment and Tax 1

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11. Mehak is planning to launch an online education portal. In order

to understand the varied needs of the students, she conducted an

online survey. Based on the feedback of the survey, she has decided

to offer educational packages to the prospective buyers.

Identify the type of marketing concept being described in the given

case.

(a) Product concept

(b) Production concept

(c) Marketing concept

(d) Societal marketing concept 1

12. For the following two statements, choose the correct option:

Statement I: Depository Participant serves as an intermediary between

the investor and the depository who is authorised to maintain the

accounts of dematerialised shares.

Statement II: Depository acts like a bank and keeps securities in

electronic form on behalf of the investor.

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 1

RSPL/3 5 P . T .O.
13. Name the concept which is the sum total of all individuals, institutions

and other forces that are outside the control of a business enterprise

but that may affect its performance.

(a) Management

(b) Coordination

(c) Organising

(d) Business Environment 1

14. Read the following statements—Assertion (A) and Reason (R), and

choose the correct option from the alternatives given below:

Assertion (A): The job of a marketer is to add to the value of the

product so that the customers prefer it in relation to the competing

products and decide to purchase it.

Reason (R): A product will be purchased only if it is perceived to

be giving greatest benefit or value for the money.

Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is

the correct explanation of Assertion (A)

(b) Both Assertion (A) and Reason (R) are true and Reason (R) is

not the correct explanation of Assertion (A)

(c) Assertion (A) is true but Reason (R) is false

(d) Assertion (A) is false but Reason (R) is true 1

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15.

Identify the process which eliminates problems like theft, fake/

forged transfers, transfer delays and paperwork associated with share

certificates or debentures held in physical form as depicted in the

given image.

(a) Dematerialisation (b) Demutualisation

(c) Financial intermediation (d) Allocative function 1

16. A trade practice for the purpose of promoting sale, use or supply of

any goods or service falsely represents its quality, standard, quantity,

composition, style or model is termed as:

(a) Unfair trade practices (b) Spurious goods and services

(c) Restrictive trade practice (d) Defect 1

RSPL/3 7 P . T .O.
 17. Match the features of Planning given in Column I with their respective

explanations given in Column II, and choose the correct alternative:

Column I Column II

A. Planning focuses on (i) Plans are redrawn at the end

achieving objectives of the period and new plans

are drawn on the basis of

new requirements and future

conditions.
B. Planning is futuristic (ii) Planning is required at all

levels of management as well

as in all departments of the

organisation.
C. Planning is continuous (iii) It implies peeping into the

future, analysing it and

predicting it.

D. Planning is pervasive (iv) Planning has no meaning

unless it contributes to the

achievement of pre-determined

organisational goals.

Alternatives:

(a) A – (ii), B – (iii), C – (i), D – (iv)

(b) A – (iv), B – (i), C – (iii), D – (ii)

(c) A – (iii), B – (ii), C – (iv), D – (i)

(d) A – (iv), B – (iii), C – (i), D – (ii) 1

RSPL/3 8
18. Indigo Limited has a staff of 300 people which is grouped into

different departments. The organisational structure depicts that 100

people work in Production department, 150 in Finance department,

20 in Information Technology department and 30 in Human Resource

department. Identify the type of organisational structure being followed

by the company.

(a) Functional structure (b) Divisional structure

(c) Informal structure (d) None of the above 1

19. Which one of the following is related to planning, organising, directing

and controlling of financial activities?

(a) Financial decision (b) Capital structure

(c) Investment decision (d) Financial management 1

20. Arrange the following steps of Staffing process sequentially, and choose

the correct alternative:

(i) Performance Appraisal

(ii) Orientation

(iii) Selection

(iv) Recruitment

Alternatives:

(a) (iv), (iii), (ii), (i) (b) (iii), (iv), (ii), (i)

(c) (iv), (ii), (iii), (i) (d) (iii), (iv), (i), (ii)  1

RSPL/3 9 P . T .O.
21. Max industries want to hire a staff for its chemical division. The
Human Resource Department lists out following methods of recruitment:

• Using naukri.com to search for prospective candidates.

• Consider voluntary applications received earlier from various job

seekers.

Identify and explain the sources of recruitment recommended by the

Human Resource Department.  3

Or

The purpose of this test is to find out how much capability a person
has to mix-up with other persons, and whether he can influence other
persons and get influenced by them.

(a) Which selection test is indicated in this situation?

(b) Also, explain any two other selection tests.  3

22. A Company named Mahir Cycles has decided to start a new branch
in the Middle East. The company has recognised the amount of
work to be done in number of hours. The company has found that
it will take 25000 hours of man work for a specific work and has
subsequently divided the number of hours for different operations.
The real challenges of the company begin here. Very methodically
responsibility of the recognised amount of work has been given to
different individuals according to their capabilities.

Give the meaning of the function of management highlighted in the

above case. Explain the two steps of this function indicated above. 3

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 Or

Gagan Colours is a profit making colour producing company. The

company deals in making different types of colours used in painting.

The organisation has always been systematic in its approach and due

to good organising has seen a continuous increase in its revenue.

Workers are given their respective jobs clearly which leads to gaining of

experience since they do their respective jobs on a regular basis leading

to high productivity as well. The organisation has many challenges

and it wants to improve as well. There is no doubt in the lines of

communication and everyone knows who has to report whom. With

passage of time, there is more need to connect with the employees

as they are the most important asset to the organisation. When

managers delegate work to their subordinates they set themselves

free from routine jobs and this leads to great amount of learning

for the subordinates in practical situations.

Explain the importance of Organising which has been highlighted in

the above case. 3

23. Explain any three semantic barriers to effective communication.  3

24. Lately, many companies have planned for significant investment in

organised retailing in India. Several factors have prompted their

decision in this regard. Customer income is rising. People have

developed a taste for better quality products even though they may

RSPL/3 11 P . T .O.
 have to pay more. The government permitted cent percent foreign

direct investment in some sectors of retailing.

Identify the different dimensions of business environment by quoting

lines from the above para. 3

25. Identify the elements of one of the functions of management highlighted

in the following cases:

(a) It is the process of stimulating and inspiring people at work to

contribute to the best of their capabilities for the achievement of

organisational goals. Due to this, the efforts of an individual or

group are energised.

(b) It is the process of exchanging of ideas, views, facts, feeling, etc.,

between two or more persons and acts as a basis of coordination

and helps in the smooth functioning of an enterprise.

(c) It is the process of influencing the behaviour of people towards

the achievement of organisational goals and the ability to maintain

good interpersonal relations with the subordinates and motivate

them to contribute to achieving organisational objectives.

(d) It refers to instructing, guiding and observing the subordinates

at work to ensure that they are working as per the plans and

to help them in solving their problem and serves as a link

between the workers and the management and helps in improving

performance. 4

RSPL/3 12
26. Remo was a pen manufacturer. He used to make ball point pens in

a small factory in the basement of his house. Daily he would go to

the market place and distribute pens to the retailers. Some of the

pens were sold by him on his own by meeting persons on the road.

He had not kept any name for his pens. They were just blue, black

and red pens. One of his friends suggested him to keep a good name

of his pens. He kept his own name and started selling pens with

the name of Remo Pens. Then there were three categories of pens

– Remo Red, Remo blue and Remo black. Gradually, his business

started to pick up even more and he made good revenue.

(a) Which function of marketing is highlighted in the above case?

(b) Identify and explain the element of promotion mix that has been

highlighted in the above case.

(c) Identify and quote the lines which highlight the two types of

names in the above case? 4

27. Pratyush is the Managing Director of XYZ Ltd. It is an automobile

parts manufacturing company. The enterprise has a functional

structure, in which jobs of similar nature have been grouped together

as Production, Finance, Marketing and Human Resource. XYZ Ltd. has

its manufacturing unit at Greater Noida. The factory has been plagued

with many problems for a long time which was in the knowledge of

the Production Manager, Varun Sharma. The workers had internal

differences. Time and again, there were misunderstandings between

RSPL/3 13 P . T .O.
 the management and the workers. Keeping the problems in mind,

Varun Sharma appointed, Satish who had ten years of experience

of working with the actual workforce and passing on instructions of

the middle management to the workers. Satish met Varun Sharma

to understand what the management wanted. Thereafter, he met the

workers and conveyed the ideas of management to them. He also

promised the workers to convey their problems to the management. In

this way, he cleared the misunderstanding between the management

and the workers. He also sorted out internal differences and was able

to unite the workers within a month of his joining. His work was

acknowledged by the management and he was given a certificate of

good performance along with 10% increase in salary.

(a) Name the managerial level at which Satish is working.

(b) State any three functions Satish is expected to perform at the

position he is working at. 4

28. ABC Ltd. is engaged in the manufacturing of apparel. Over the

years, it has become a popular brand due to its good product quality

and exclusive designing. The company plans to open its own retail

showrooms in metropolitan cities in India. In order to meet its

financial needs, it has offered for subscription an IPO of ` 6 lakh

equity shares in the price band of ` 450 – ` 455 each. As per the

guidelines of SEBI, the company has provided a complete disclosure

of the relevant details in its prospectus.

RSPL/3 14
 (a) Identify and explain the right of the consumer being fulfilled by

the directives of SEBI in the above mentioned case.

(b) Briefly explain any two points highlighting the importance of

consumer protection from the point of view of the businessmen. 4

Or

Aryan went to purchase a pack of chocolate for his son from a

shop in the nearby market. Despite his preference to buy a pack of

a particular brand, the shopkeeper forced him to buy the pack of

chocolate of another brand, by giving some odd justifications. After

coming back home, Aryan was feeling very dissatisfied.

(a) Identify and explain the right of the consumer being violated in

the above mentioned case.

(b) Explain any two points highlighting the importance of consumer

protection from the consumer’s point of view. 4

29. XYZ Foods is a well-established food manufacturing company that

produces a wide range of packaged food products, including snacks,

canned goods, and beverages. XYZ Foods prepares to launch its new

line of organic snacks, aiming to tap into the growing demand for

healthier, and more natural food options. They face a challenge, to

decide how to present the nutritional information and other details on

their product packaging. XYZ Foods decided to put a hologram seal

RSPL/3 15 P . T .O.
 on the food packets in order to protect the contents from spoilage,

leakage, pilferage, damage, along with a tag with a safety warning

for the consumers to check the seal.

(a) Which concept of marketing discussed above is performing the

important function of communicating with the potential buyer

and promoting the sale.

(b) Explain any three points of its importance in marketing. 4

30. Priyanka, after acquiring a degree in Hotel Management and

Business Administration took over her family food processing company

of manufacturing, pickles, jams and squashes. The business was

established by her great grandmother and was doing reasonably well.

However, the fixed operating costs of the business were high and the

cash flow position was weak. She wanted to undertake modernisation

of the existing business to introduce the latest manufacturing processes

and diversify into the market of chocolates and candies. She was

very enthusiastic and approached a finance consultant, who told her

that approximately ` 50 lakhs would be required for undertaking the

modernisation and expansion programme. He also informed her that

the stock market was going through a bullish phase.

Keeping the above considerations in mind, name the source of

finance Priyanka should not choose for financing the modernisation

and expansion of her food processing business. Give three reasons in

support of your answer. 4

RSPL/3 16
 Or

A company ‘Radiance Sheets’ is a successful bed sheet selling company.

It sells ` 1 crore worth sheets to a corporate customer. The company

gives a period of 2 months to the client to pay for the sheets. The

company send an invoice to the customer and the inventory account

gets reduced by ` 1 crore. The account receivable is increased by ` 1

crore. When its corporate client pays within the period of 2 months

the cash is increased by ` 1 crore and the account receivable is

reduced by ` 1 crore.

(a) In the above financial transaction, the essential ingredients of

which concept of financial management have been highlighted?

(b) Mention the essential ingredients of the concept of financial

management identified in part (a).

(c) What is the other term used for long-term investment decision?

(d) What is affected by long-term investment decision? 4

31. (a) Explain any two terms of financial market from the following:

(i) Depository Participant

(ii) Financial Intermediation

(iii) Alternative Mechanism

(b) Distinguish between Primary Market and Secondary Market on

any three basis. 3+3=6

RSPL/3 17 P . T .O.
 Or

(a) Explain any two functions of stock exchange from the following:

(i) Pricing of Securities

(ii) Contributes to Economic Growth

(iii) Spreading of Equity Cult

(b) Distinguish between Capital Market and Money Market on any

three basis. 3+3=6

32. ‘Controlling is an indispensable function of management.’ Do you

agree? Give five reasons in support of your answer.  6

Or

Explain the various steps in the process of controlling. 6

33. Mega Ltd. holds an Annual Management Programme every year in

the month of March in which the top managerial personnel formulate

plans for the next year by analysing and predicting the future to

meet future events effectively.

As they are responsible for providing direction to the organisation,

facts are thoroughly checked using scientific calculations. Detailed plans

are prepared after discussion with professional experts. Preliminary

investigations are also undertaken to find out the viability of the plan.

Since, it is an intellectual activity requiring intelligent imagination

and sound judgement, so it is mainly done by the top management.

RSPL/3 18
 Usually rest of the members just implement the plans. Middle level

managers are neither allowed to deviate from the plans nor are they

permitted to act on their own. The top management ensures that

the expenses incurred in formulating the plans justify the benefits

derived from them.

Identify, quote and explain any two features and any two limitations

of planning discussed above. 6

34. Read the statements given in point 1 and 2, and answer the questions

that follow:

1. Fredrick Winslow Taylor and Henri Fayol contributed immensely

towards the study of management as a discipline.

(a) 
Name the management theory with which Fredrick Winslow

Taylor and Henri Fayol are associated.

(b) Name the book in which the fourteen principles of management

propounded by ‘Father of General Management’ published in

1949. Mention any six administrative principles of management.

2. While
practicing principles of management values cannot

be neglected, as businesses have to fulfil social and ethical

responsibilities towards society.

(a) 
Give the meaning of principles of management and values.

(b) 
Differentiate between principles of management and values

on the basis of formation. 3+3=6

RSPL/3 19 P . T .O.