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BUSINESS STUDIES

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General Instructions :
Read the following instructions very carefully and strictly follow them :
(i) This question paper contains 34 questions. All questions are compulsory.
(ii) Marks are indicated against each question.
(iii) Answers should be brief and to the point.
(iv) Answers to questions carrying 3 marks may be from 50 to 75 words.
(v) Answers to questions carrying 4 marks may be in about 150 words.
(vi) Answers to questions carrying 6 marks may be in about 200 words.
(vii) Attempt all parts of a question together.

Questions 1 to 20 are Multiple Choice Questions (MCQs), carrying 1 mark

each. 20 1=20

1. Coordination integrates the efforts of different departments and at

Identify the characteristic of coordination highlighted in the above

statement.
(a) Coordination ensures unity of action.
(b) Coordination is an all pervasive function.
(c) Coordination is a deliberate function.
(d) Coordination is the responsibility of all managers.

2. Which of the following are the examples of Legal Environment ?

(i) Advertisement of alcoholic beverages is prohibited
(ii) Decrease in interest rate on loans
(iii) Increase in demand for organic foods
(iv) Digilockers for storing documents
(v) In 1993, the Supreme Court passed an order to close the iron

(a) (i) and (iv)

(b) (i) and (ii)
(c) (ii) and (iii)
(d) (i) and (v)

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3. ____________ refers to retention of decision-making authority by higher
management levels.
(a) Decentralisation
(b) Departmentalisation
(c) Span of Control
(d) Centralisation

4.
company had launched new eco-friendly paper straws in the market. He
was given a target of producing 5,000 straws a day, by the General
Manager. In spite of making the employees work overtime, Umang could
not meet the target.
On investigation, it was found that the employees had not received the
right training to manufacture these eco-friendly paper straws. So the
employees were sent for special training.
The function of management which helped Umang in identifying that he
could not meet the target is :
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

5. Statement I : Management is multi-dimensional.

Statement II : The activities involved in managing an enterprise are

common to all organisations whether economic, social or
political.

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 false.
(d) Both the statements are true.

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6. Which of the following is not a step in the process of ontrolling
function of management ?
(a) Setting performance standards
(b) Assignment of duties
(c) Taking corrective action
(d) Comparing actual performance with standards

7. ___________ as an element of marketing mix includes the activities that

(a) Promotion
(b) Place
(c) Product
(d) Price

8. The process of defining and grouping the activities of the enterprise and
establishing authority relationship among them is :
(a) Directing
(b) Staffing
(c) Management
(d) Organising

9.
observed that the receptionist was seated at the reception desk, the place
fixed for her. Dental instruments were laid neatly in dental instrument
trays and the used instruments were placed in the sterilisation area.
There was a fixed place for everything and it was present there. There
was no hindrance in the work of the dentist and she was working with
her maximum efficiency.
The principle of management followed at
(a) Equity
(b) Discipline
(c) Order
(d) Initiative

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10. Match the various characteristics of Business environment given in
Column I with their respective explanations in Column II :
Column I Column II

A. Dynamic nature (i) Environment is a phenomenon that is

relatively easier to understand in parts
but difficult to grasp in its totality.
B. Complexity (ii) Business environment differs from
country to country and even
region to region.
C. Relativity (iii) Business environment keeps on
changing, whether in terms of
technological improvement or shifts in
consumer preferences.

(a) A (iii), B (ii), C (i)

(b) A (ii), B (iii), C (i)

(c) A (iii), B (i), C (ii)

(d) A (i), B (ii), C (iii)

11.
need to communicate with one another with the help of a common
vocabulary for the better understanding of their work situation.

highlighted in the
above statement ?
(a) Principles based on experimentation
(b) Systematised body of knowledge
(c) Universal validity
(d) Personalised application

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12.
manner. It is earning enough revenue to cover costs and the risks of the
business. Now the company wants to increase the sales volume, the
capital investment, the number of employees and the number of products
also.
By doing this, the management wants to achieve its following objective :
(a) Survival
(b) Profit
(c) Personal
(d) Growth

13. During the Covid-19 pandemic, the restaurant industry faced many
challenges. The slowdown led to huge decrease in demand. From April
2022, the effect of Covid started reducing. The economy started picking
up and a boom was noticed in the restaurant industry. As a result, larger
amount of working capital was required with increased production and
sales.
The factor affecting the working capital requirement discussed above is :
(a) Seasonal factor
(b) Production cycle
(c) Operating efficiency
(d) Business cycle

14. Adapting to a change in consumer preference towards online shopping,

-
10-minute deliveries of groceries. Because of this service -
earned huge profit within a year. It planned to expand its operations and
decided to raise funds by directly issuing its securities to investors.
The market through which -
its expansion is :
(a) Money market
(b) Primary market
(c) Secondary market
(d) Both Primary and Secondary markets
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15. Capital Market instruments are riskier both with respect to returns and
principal repayment as compared to Money M
M
M
(a) Instruments
(b) Duration
(c) Safety
(d) Liquidity

16. Which of the following statements does not highlight the importance of
financial planning ?
(a) Detailed plans of action prepared under financial planning
increase waste, duplication of efforts and gaps in planning.
(b) It helps in forecasting what may happen in future under different
business situations.
(c) It provides a link between investment and financing decisions on a
continuous basis.
(d) It helps in avoiding business shocks and surprises and helps the
company in preparing for the future.

17.
marketing of their products. This was important for making an analysis
of the available opportunities, threats, weaknesses and strengths of the
organisation and help in deciding what opportunities can best be pursued
by it.
By doing so, which of the following functions of marketing is being

(a) Standardisation and grading

(b) Product designing and development
(c) Marketing planning
(d) Gathering and analysing market information
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18.

Elegant not
utterable is known as its :
(a) Brand (b) Brand name
(c) Brand mark (d) Trade mark

19.
speedy processing of orders in the absence of which goods will reach the
custom
The component of physical distribution highlighted above is :
(a) Warehousing (b) Order Processing
(c) Transportation (d) Inventory Control

20. ________ involves a variety of programmes designed to promote or protect

(a) Personal selling (b) Public relations

(c) Sales promotion (d) Advertising

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21.
festive season, Hitesh got an additional order of 10,000 garments which
he had to supply within two days. Due to his goodwill in the market, he
did not want to lose the order. So, he decided to achieve the target by
operating on double shifts. He achieved the target and supplied the order
within two days. But due to double shifts, his cost of production was
higher than the regular production cost.

Identify and give the meaning of the two concepts of management

discussed in the above para. 3

22. The attitudes, skills and abilities of employees to perform specific jobs
are increased by adopting a specific process.
organisation in many ways.

State any three benefits of this process to the organisation. 3

23. (a) (i) Name the process of holding securities in an electronic form.

(ii) Name any two participants of Money Market.

(iii) Name the depositories that hold securities in electronic

form. 3

OR
(b) State any three factors affecting the dividend decision. 3

24. (a) Explain the following as points of importance of ontrolling

function of management : 3
(i) Judging accuracy of standards

(ii) Making efficient use of resources

OR
(b) Explain the relationship between lanning and ontrolling with
the help of any three points. 3

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25. Nitya is a student of class XII of a well-known school. She has a
preconceived notion that her teacher always finds fault in her work. One
day while checking the project work of class XII, her teacher wanted to
appreciate Nitya for her hard work and good performance, but before she
could complete her sentence, Nitya left the room without listening to her
teacher.
(a)
of barrier to which it is related.
(b) Explain two other communication barriers of the type/category
identified in (a) above. 4

26. Debentures of < 4,00,000 and 10,000 Equity shares of

< 60 each. This investment resulted in a net profit of < 2,00,000 before
interest and tax. The tax rate was 50%.
(a)

(b) State with reason whether the above example is that of favourable
or unfavourable financial leverage. 4

27.
market price.
(a) Identify the incentive offered by the company and state the type of
incentive discussed above.
(b) State two other incentives of the type of incentive identified in
(a) above. 4

28. Identify and give the meaning of the concepts highlighted in the following
statements :
(a) The process of finding possible candidates for a job.
(b) An assessment of the number and types of human resources
necessary for the performance of various jobs.
(c) Introducing the selected employees to other employees and
familiarising them with the rules and policies of the organisation.
(d) It ensures that the organisation gets the best employees amongst
the employees available. 4
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29. (a)
existing securities, but performs many
Explain any two such functions of Stock Exchange. 4
OR
(b) Distinguish between primary market and secondary market on
any four bases. 4

30. (a) State the role of consumer organisations and non-governmental

organisations for the protection and promotion of consumers
interests on the basis of any four points. 4
OR
(b) State any four reliefs available to the consumers if the consumer
court is satisfied about the genuineness of the complaint. 4

31. (a) Explain the following principles of management : 6

(i) Discipline

(ii) Unity of Command

(iii) Unity of Direction

OR
(b) Explain the following techniques of Scientific Management : 6
(i) Fatigue study

(ii) Motion study

(iii) Time study

32. Setting objectives is the first step in the process of one of the significant

(a) Identify the function of management referred above.

(b) State the next five steps of the process. 6

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33. most popular brand for snacks and
sweets. It offers a wide range of sweets, namkeens, cookies and frozen
foods.
Its organisational structure comprises of separate business units in each
of the above categories. Each of these units have a manager responsible
for performance, having authority over the unit. Moreover, each of these
units is multi-functional as within each unit, different functions like
production, marketing, finance, etc. are performed. Though this kind of
organisational structure leads to increased cost because of duplication of
activities across products, but it provides a proper basis for performance
measurement as revenues and costs related to each of these business
units can be easily identified.
(a) Identify the organisational
(b) State three advantages and two disadvantages of the
organisational structure identified in (a) above which are not
discussed in the above case. 6

34. X Ltd. is engaged in the manufacturing of cars. The company surveyed

the market and found that customers need a car which runs on
eco-friendly fuel instead of petrol or diesel. Keeping the needs of
customers as well as social, ethical and ecological aspects of marketing in
mind, the company launched a new model of car that runs on bio-diesel.
The launch event was covered by the top news channels and newspapers.
This was done to disseminate information about the car and build
goodwill of the business. X Ltd. understands that it is imperative to
s with the public on a
regular basis.
(a) Identify and explain the marketing philosophy involved in the
above case.
(b) Identify and explain the communication tool that was used by the
company.
(c) Explain any two other promotional tools that can be used by
X Ltd. to achieve its objectives. 6

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