Business Studies CLASS-XII (2015-16) SAMPLE QUESTION PAPER

SAMPLE QUESTION PAPER

Business Studies

CLASS-XII

2015-2016

1. What is meant by ‘Effectiveness in Management’? 1

2. How does coordination ensure unity of action in Management 1

3. Define ‘Planning premises’ 1

4. National Vritech Ltd. has grown in size. It was a market leader but with changes in

business environment and with the entry of MNCs its market share is declining. To cope up

with the situation CEO starts delegating some of his authority to the General Manager, who

also felt himself overburdened and with the approval of CEO disperses some of his

authority to various levels throughout the organization. Identify the concept of management

discussed above. 1

5. Which component of capital structure determines the overall financial risk? 1

6. Amit is running an ‘Advertising agency’ and earning a lot by providing this service to big

industries. State whether the working capital requirement of the firm will be ‘less’ or ‘more’.

Give reason in support of your answer 1

7. Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and slowly

launched Zoom-1000, Wagon-Z, Swy-fy etc. and offered various services like after sale

service, availability of spare parts etc. Identify the element of marketing mix referred here.

1

8. Himesh after completing his graduation started working with a multinational company in

Delhi. But due to ill health of his parents he had to go back to his village. There he noticed

that the villagers were literate but ignorant about their rights. Many vegetable vendors were

using stones as weights to sell their vegetables. Some shopkeepers were selling food

items without having ‘FPO mark’. Villagers did not find anything wrong with these

practices. So to create awareness among villagers Himesh decided to publish a weekly

Journal ‘Jan Jagriti’. State the ‘Right’ whichHimesh has exercised by doing so. 1

9. State any three advantages that a functional structure offers to an organization. 3

10. ‘Choice of an appropriate channel of distribution is very important marketing decision which

affects the performance of an organization’. Explain any two factors on which the choice of

an appropriate channel depends. 3

11. Zenith Ltd. is a highly reputed company and many people wanted to join this company.

The employees of this organization are very happy and they discussed how they came in

contact with this organization. Aman said that he was introduced by the present Sales manager, Mr. John. Benu said that he had applied through the newspaper and was appointed as H.R

Manager. Vaibhav said that he was neither related to any of the employee of the organization nor there was any advertisement in the newspaper even then he was directly called from

IIM Ahmedabad from where he was about to complete his MBA.

a) The above discussion is indicating an important function of management. Name the

function of management

b) The management function identified in part (a) follows a particular process. Explain the

step of this process which is being discussed in the above para. 1+2

12. Supriya’s grandmother who was unwell, called her and gave her a gift packet. Supriya

opened the packet and saw many crumpled share certificates inside. Her grandmother

told her that they had been left behind by her late grandfather. As no trading is now done in physical form, Supriya wants to know the process by adopting which she is in a position to deal with these certificates.

a) Identify and state the process.

b) Also give two reasons to Supriya why dealing with shares in physical form had been

stopped. 1+2

13. The barriers to effective communication exist in all organizations. Explain any three measures to overcome these barriers. 3

14. Define Business Environment. State any three of its features. 4

15. Mr. Ajay after completing MBA from USA comes to India to start a new business under

the banner Ecom Creations Ltd. He launches a new product in e-learning for Senior

Secondary School students in Commerce stream, which already has an established market

in UK and USA but not in India. His business starts flourishing in India. Now more Indian

companies entered into the market with other subjects also.

Identify and quote the lines from above para which highlight the significance of

understanding business environment. 4

16. Rajeev, the owner of Pathways constructions decided to start a campaign to create

awareness among people for developing clean surroundings in their area. He formed a

team of 10 members to list the different ways for cleaning the surroundings. One

suggested to take the help of local residents, another suggested that they may involve

school going children in their venture. One more suggestion was to take the help of

unemployed youth. On evaluation of different ways, it was decided to take the help of

local residents. To achieve the desired goal various activities were identified like

a) Purchase of necessary items like dustbins, garbage bags, brooms, etc.;

b) Collection of garbage;

c) Disposal of garbage, etc.

After identification of different activities the work was allocated to different members.

i. Identify the concepts of management involved in the above situation and

quote the lines which help in their identification.

ii. Also identify the values which the company wants to communicate to the

society 4

17. Blue Heavens Ltd. purchased a new hi-tech machine from Germany for manufacturing high

quality auto components in a cost effective manner. But during the production process, the

manager observed that the quality of production was not as per standard. On investigation it was found that there was lack of knowledge amongst the employees of using these hi-tech machines. So, frequent visit of engineers was required from Germany. This resulted in high overhead charges.

(i) Suggest what can be done to develop the skills and abilities of employees for producing

high quality products by using these hi-tech machines. Also state how the employees or

the organization will benefit from your suggestion. 4

18. Explain any four functions of financial market. 4

19. Radha found a worm crawling out of newly opened tetra pack of a juice manufactured by

a reputed company, Zest, Ltd.. She went back to the shopkeeper from whom the pack was

purchased who directed her to call up the customer care centre. When all her efforts

failed, she went to a consumer activist group to seek help. The group decidedto

help Radha and take measures to impose restrictions on the sale of the firm’s products

of the particular batch and urge customers to refrain from buying the products of the

company. Zest Ltd. lost its image in the market. The CEO gives the responsibility of

bringing back the lost image of the company to a Manager.

a) Identify the concept of Marketing Management which will help the Manager getting

the firm out of the above crisis.

b) Also explain the role of above identified concept by stating any two points. 4

20. A company is manufacturing washing machines. There is a well defined system of

jobs with a clear and definite authority, responsibility and accountability in the company.

But people are not allowed to interact beyond their officially defined roles. As a result

the company is not able to adapt to the changing business environment. The workforce is

also not motivated due to lack of social interaction. The company is facing problems of

procedural delays and inadequate recognition to creative talents.

(i) Suggest how the organization can overcome the problems faced by it.

(ii) Give any two benefits it will derive from your suggestion. 5

21. State the importance of directing function of management. 5

22. Mr. Nath, a recently appointed production manager of Suntech Ltd. has decided to

produce jute bags instead of plastic bags as these are banned by the government. He set a

target of producing 1000 jute bags a day. It was reported that the employees were not

able to achieve the target. After analysis he found that employees were demotivated

and not putting in their best for achieving the target. Mr. Nath’s behavior is good towards

the employees. His attitude is always positive. So he announced various incentive

schemes for the employees like: 5

· Installing award or certificate for best performance

· Rewarding an employee for giving valuable suggestions

· Congratulating the employees for good performance

a) Identify the functions of management highlighted in the above paragraph.

b) State the‘ incentive’ under which the employees are motivated.

c) State any two values which the production manager wants to communicate to the

society by his work and behaviour.

23. Explain the following principles of management given byFayol. 6

a) Unity of command

b) Order

24. It is necessary that goods and services must be made available to the customers at the

right place, in the right quantity and at right time. 6

a) Name and explain the concerned element of Marketing Mix given above.

b) Explain the components of this element

25. Tata International Ltd. earned a net profit of Rs.50 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 discuss any five factors which help him in taking this

decision. 6