KENDRIYA VIDYALAYA SANGATHAN, BHUBANESWAR REGION

PRE BOARD EXAMINATION 2024-25

SUBJECT-BUSINESS STUDIES (054) MAX MARKS: 80

CLASS – XII TIME: 3 HRS
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 no. 1 to 20 are Multiple Choice Questions (MCQs), carrying 1 mark each.

S No Question Marks

1 ------------ refers to doing the task correctly and with minimum cost. 1
(A) Effectiveness (B) Coordination
(C) Process (D) Efficiency

2 Due to the increasing presence of women in the workforce, ‘Muskan Mart' comes out 1
every Friday with big discount offers on daily use items to attract office-going women to
shop on weekends.
Which dimension of the business environment is being highlighted in the above case?
(A) Social environment (B) Legal environment
(C) Political environment (D) Technological environment

3 …………………………………. means number of employees or subordinates can be 1

effectively managed / controlled by a manager.
(A) Span of management (B) Organizational structure
(C) Informal organization (D) Delegation of authority

4 ……….is the step in the controlling process where standards may have to be revised in 1
case the deviation cannot be corrected through managerial action.
(A) Setting Performance Standards.
(B) Measurement of Actual performance.
(C) Comparing Actual Performance with standards and analyzing deviation.
(D) Taking corrective action
5 Which component of the business environment requires that advertisements of baby food 1
must necessarily inform the potential buyers that mother’s milk is the best?
(A) Legal Environment (B) Political Environment
(C) Technological Environment (D) Social Environment

6 ‘Mo bliss’ started using an environment-friendly 'Bilona' method of making ghee, unlike 1
other dairies which were using modern methods involving machines and chemicals. By
doing this, ‘Mo bliss’ is providing employment to hundreds of illiterate people in the rural
areas. Which objective of management is ‘Mo bliss’ trying to achieve:
(A) National objective (B) Personal objective
(C) Social objective (D) Economic objective

7 Identify from the following what is shown in the picture given below? 1

(A) Brand name (B) Brand mark

(C) Trademark (D) Label

8 For holding securities in an electronic form, the investor has to open a demat account with 1
an organization called __________.
(A) Depository (B) Securities and Exchange Board of India
(C) Stock Exchange (D) Mutual Fund

9 Adapting to a change in consumer preference towards online shopping. ‘Fast-Service' 1

started a grocery delivery app. It is a platform that ensures 10- minute deliveries of
groceries. Because of this service, ‘Fast-Service’ earned a 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 ‘Fast-Service' has decided to raise funds for its expansion is :
(A) Money market
(B) Primary market
(C) Secondary market
(D) Both Primary and Secondary markets
10 Statement I: Delegation is the entrustment of responsibility and authority to another, and 1
the creation of accountability for performance.
Statement II: Irrespective of the extent of delegated authority, the manager shall still be
accountable to the same extent as before delegation.
Choose the correct option from the following:
(A) Statement I is true and Statement II is false.
(B) Statement II is true and Statement I is false.
(C) Both the Statements are true.
(D) Both the Statements are false.

11 Most of the organizations these days have adapted themselves to changing environment. 1
To reach and engage with the target customers, they started to have a strong presence
on social media like Facebook, Instagram, etc.
From the following, identify the feature of management being highlighted:
(A) Management is a group activity.
(B) Management is a continuous process.
(C) Management is multidimensional.
(D) Management is a dynamic function.

12 Match the Marketing Management philosophies given in Column I with their main focus 1
given in Column II:

Column I Column II
1. Production concept i) Customers’ needs
2. Product concept ii) Quality, performance and features
3. Marketing concept of product.
4. Societal Marketing concept iii) Customers’ needs and societal
well-being.
iv) Quantity of product

Choose the correct option from the following:

(A) 1-(i), 2-(ii), 3-(iii), 4-(iv)
(B) 1-(ii), 2-(iii), 3-(i), 4-(iv)
(C)1-(iv), 2-(ii), 3-(i), 4-(iii)
(D) 1-(ii), 2-(iv), 3-(i), 4-(iii)
13 Two big banner movies were scheduled to be released on the same date. On the last 1
movement release of one of the movies had to be postponed due to opposition from a
group of people due to some unethical content being shown in the movie. The other movie
released on time and made huge profit as there was no competition and the movie which
was postponed suffered loss.
Which features of the business environment are highlighted here?
(A) Uncertainty (B) Relativity
(C) Dynamic (D) Interrelated

14 ‘Star biscuits’ launched its new range of oat cookies in three varieties. They decided to 1
distribute free samples of their biscuits in schools as a part of their promotional campaign.
Identify the tool of promotion used by 'Star Biscuits':
(A) Advertising (B) Personal Selling
(C)Sales Promotion (D) Public Relations

15 Uma was working as a ‘Production Manager' at ‘Mega Papers Ltd’. The company had 1
launched new eco- friendly paper straws in the market. She was given a target of
producing 5,000 straws a day, by the General Manager. In spite of making the employees
work overtime, Uma 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 Uma in identifying that he could not meet the
target is:
(A) Planning (B) Organising
(C) Directing (D) Controlling

16 Choose the incorrect statement about 'Money market': 1

(A) The main instruments traded in this market are Treasury bills, Trade bills, Commercial
paper and Certificates of deposit.
(B) In this market, transactions entail huge sums of money as the instruments are quite
expensive.
(C) Participation in this market is by and large undertaken by institutional participants such
as the Reserve Bank of India, banks, financial institutions and finance companies.
(D) It deals in medium- and long-term securities.
17 __________as an element of marketing mix includes the activities which provide 1
information about the product to the target customers.
(A) Promotion (B) Place (C) Product (D) Price

18 During the Covid-19 pandemic, the Tourism industry faced many challenges. The 1
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 Tourism
industry. As a result, a larger amount of working capital was required with increased
Demand.
The factor affecting the working capital requirement discussed above is:
(A) Seasonal factor (B) Production cycle (C) Operating efficiency (D) Business cycle

19 Read the following statements: 1

Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): Availability of leasing facilities may reduce the funds required to be invested
in fixed assets thereby reducing the fixed capital requirements.
Reason (R): When an asset is taken on lease, the firm pays lease rentals to use it and
avoids to invest huge sums required to purchase it.

(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 but 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.

20 Coordination is considered to be the essence of management because ______. 1

(A) It is a common thread that runs through all the activities within the organisation.
(B) It is implicit and inherent in all functions of the organisation.
(C) It is a force that binds all the functions of management.
(D) All of the above.

21 Explain the following: 3

(a) Vestibule training (b) Apprenticeship training
(Or)
Distinguish between training and development.
22 Explain any three relationships between Planning and Controlling. 3
(Or)
Explain 'Critical point control' and 'Management by exception' as discussed in the
controlling process.

23 Rashmi is working in a private sector bank. One of her key functions relates to the 3
formulation of the overall organizational goals and strategies of the bank. Identify the level
of management at which she is working? State any three other functions that she has to
perform at this level.

24 Mr. Vikas Mehra was the Chairman of IBM Bank. The bank was earning good profits. 3
Shareholders were happy as the bank was paying regular dividends. The market price of
their shares was also steadily rising. The bank was about to announce the taking over of
‘UK Bank’. Mr. Vikas Mehra knew that the share price of IBM Bank would rise on this
announcement. Being a part of the bank, he was not allowed to buy shares of the bank.
He called one of his rich friends Mukand and asked him to invest Rs. 4 crores in the
shares of his bank promising him the capital gains.
As expected, after the announcement, the share prices went up by 50% and the market
price of Mukand’s shares was now Rs. 6 crores. Mukand earned a profit of Rs. 2 crores.
He gave Rs. 1 crore to Vikas Mehra and kept Rs. 1 crore with him. On regular inspection
and by conducting enquiries of the brokers involved, the Securities and Exchange Board
of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas
Mehra.
a) Which type of unfair trade practices done by Mr.Vikas
b) Quoting lines from the above paragraph identify and state any two functions
performed by the SEBI in the above case.
(Or)
Explain any three functions of stock exchange.

25 ‘Zeto Ltd.’ offers its employees shares at a price which is less than the market price. 4
(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.
26 Abhilasha is a student of class XIl of a well-known school. She has a preconceived notion 4
that her teacher always finds fault in her work. One day while checking the project work
of class XII, her teacher wanted to appreciate Abhilasha for her hard work and good
performance, but before she could complete her sentence, Abhilasha left the room without
listening to her teacher.
(a) Identify the ‘barrier to communication' and also the type of barrier to which it is related.
(b) Explain two other communication barriers of the identified in (a) above.

27 Arun is a successful businessman in the paper industry. During his recent visit to his 4
friend’s place in Mysore, he was fascinated by the exclusive variety of incense sticks
available there. His friend tells him that Mysore region in known as a pioneer in the activity
of Agarbati manufacturing because it has a natural reserve of forest products especially
Sandalwood to provide for the base material used in production. Moreover, the suppliers
of other types of raw material needed for production follow a liberal credit policy and the
time required to manufacture incense sticks is relatively less. Considering the various
factors, Arun decides to venture into this line of business by setting up a manufacturing
unit in Mysore.
In context of the above case:
1. Identify the decision made by Arun in above case:
2. Identify the three factors mentioned in the paragraph which are likely to affect the
working capital requirements of his business.
(Or)
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 three factors which help him in
taking this decision.

28 Bhuvan inherited a very large area of agricultural land in Haryana after the death of his 4
grandfather. He plans to sell this piece of land and use the money to set up a small scale
paper factory to manufacture all kinds of stationary items from recycled paper. Being an
amateur in business, he decides to consult his friend Subhash who works in a financial
consultancy firm. Subhash helps him to prepare a blue print of his future business
operations on the basis of sales forecast in next five years. Based on these estimates, he
helps Bhuvan to assess the fixed and working capital requirements of business.
In context of the above case:
 1. Identify the type of financial service that Subhash has offered to Bhuvan.
2. Briefly state any four points highlighting the importance of the type of financial service
identified in part (a)

29 Reena purchased one litre of pure desi ghee from a shopkeeper. After using it, she had 4
doubts that it was adulterated. She sent it for a laboratory test which confirmed that the
ghee was adulterated.
a) State any four reliefs available to Reena if she complaints and the consumer court is
satisfied about the genuineness of the complaint.
b) State any two responsibilities of Reena
(Or)
Explain any four rights of consumer.

30 Identify and give the meaning of the concepts highlighted in the following statements : 4
(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 organization.
(d) It ensures that the organization gets the best employees amongst the employees
available.

31 Explain the following techniques of Scientific Management: 6

(i) Time study
(ii) Method study
(iii) Differential piece wage system
(Or)
Explain the following principles of Scientific Management:
(i) Science, Not Rule of Thumb
(ii) Harmony, Not Discord
(iii) Development of Each and Every Person to His or Her Greatest Efficiency and
Prosperity

32 Priya started her own art channel on ‘YouTube Mo Art’. As her subscribers increased, she 6
was not in a position to manage everything on her own. She hired Kishan and Riya to
help her with filming, editing, lighting and content research. She granted authority to them
 to operate within prescribed limits. She was thus able to use her time on high priority
activities like developing new ways of art and content development etc. As a result, Kishan
and Riya were given opportunities to develop and exercise initiative. Priya was now able
to focus on objectives and meet the target of achieving a subscriber base of one million
in six months.
(a) Identify and explain the concept of management used by Priya to focus on objectives
of her business and meet her targets.
(b) Explain four points of importance of the concept identified in (a) above.

33 Anusuya care Enterprise is a manufacturer of Hygiene products. It decided to increase 6

profits by at least 20% in the next quarter. It has many options:
1. To increase the working hours of labour with additional payment.
2. To employ worker from the local community.
3. To sell its products outside the schools and colleges.
It opted the (ii) and (iii) options to achieve the target.
1. Identify the function of management described in the above para.
2.Explain the steps of the process involved in the function of management
Identified in (a) quoting the lines from the above para.
(Or)
Suhasini, a home science graduate from a reputed college, has recently done a cookery
course. She wished to start her own venture with a goal to provide 'health food' at
reasonable prices. She discussed her idea with her teacher (mentor) who encouraged
her. After analyzing various options for starting her business venture, they shortlisted the
option to sell ready-made and 'ready to make' vegetable shakes and sattu milk shakes.
Then, they weighed the pros and cons of both the shortlisted options.
a. Name the function of management is discussed above and give any one of its
characteristics.
b. Also briefly discuss any three limitations of the functionality discussed in the case.

34 ‘BB Ltd.' is engaged in the manufacturing of Vehicles. The company surveyed the market 6
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. ‘BB Ltd.'
understands that it imperative to manage public opinion and company's relations 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 ‘BB Ltd' to achieve its
objectives
 KENDRIYA VIDYALAYA SANGATHAN, BHUBANESWAR REGION
PRE BOARD EXAMINATION 2024-25

SUBJECT-BUSINESS STUDIES (054) MAX MARKS:80.

CLASS – XII TIME: 3 HRS

(Marking Scheme )

S.n. Question Marks

1 (D) Efficiency 1

2 (A) Social environment 1

3 A) Span of managemt 1

4 D) Taking corrective action 1

5 (A)Legal Environment 1

6 (C ) Social Objective 1

7 (D) Label 1

8 (A) Depository 1

9 (B) Primary market 1

10 (C ) Both statement are true 1

11 (D) Management is dynamic function 1

12 (C)1-(iv), 2-(ii), 3-(i), 4-(iii) 1

13 B) Relativity 1

14 C) Sales promotion 1

15 D) Controlling 1

16 D) It deals in medium and long term securities. 1

17 A) Promotion 1

18 (D) Business Cycle 1

19 (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct 1
explanation of Assertion (A).
20 (B) Technological environment 1

21 Vestibule Training 3
Employees learn their jobs on the equipment they will be using, but the training is
conducted away from the actual work floor.
Actual work environments are created in a class room and this is usually done when
employees are required to handle sophisticated machines and equipment.
Apprenticeship Programme
Apprenticeship programmes put the trainee under the guidance of a master worker.
These are designed to acquire a higher level of skill.
A uniform period of training is offered to trainees, in which both fast and slow learn
here, are placed together. Slow learners may require additional training.
Or
Any three differences

22 Explain any three relationship 3

Or
1. Critical Point Control:
Control should focus on key result areas (KRAs) which are critical to the success of
an organisation. These KRAs are set as the critical points. If anything goes wrong at
the critical points, the entire organisation suffers.
2. Management by Exception:
Management by exception, also known as control by exception, is based on the belief
that an attempt to control everything results in controlling nothing. Thus, only
significant deviations which go beyond the permissible limit should be brought to the
notice of management.

23 Rashmi is working at the top level of management in the private sector bank. The 3
three other functions that she has to perform at this level are outlined below:
a)She is responsible for the success and failure of the organization.
b) She is responsible for all the business activities and its impact on society.
c) She has to coordinate the activities of different departments in pursuit of common
goals.

24 a) Insider trading 3
b)
1. Regulatory function is being performed by SEBI: “on regular inspection and
conducting inquiries of the brokers involved.”
2. Protective function is performed by SEBI: “The SEBI imposed heavy penalty on Mr.
Vikas Mehra.
Or
Providing Liquidity and Market ability to Existing Securities: Stock Exchange gives
investors the chance to disinvest and reinvest. This provides both liquidity and easy
marketability to already existing securities in the market.
2. Pricing of Securities: Share prices on a stock exchange are determined by the
forces of demand and supply.
3. Safety of Transaction: The membership of a stock exchange is well-regulated. This
ensures that the investing public gets a safe and fair deal on the market.(any other)

25 Co-partnership/ Stock option 4

Financial incentives are the incentives measurable in direct monetary form/term
which serve to motivate people for better performance.
26 a) Premature Evaluation and Psychological Barriers 4
(b) Any two of the following:
(i) LackofAttention:
The pre-occupied mind of receiver and the resultant non listening of message acts as
a major psychological barrier.
(ii) Loss by transmission and poor retention :
When communication passes through various levels, successive transmissions of the
message results in loss of, or transmission of inaccurate information.
(iii) Distrust :
Distrust between communicator and
communicatee acts as a barrier. If the parties do not believe each other, they cannot
understand each others message in its original sense.

27 Investment decision has been taken by Arun. Investment decision seeks to determine 4
as to how the firm’s funds are invested in different assets. It helps to evaluate new
investment proposals and select the best option on the basis of associated risk and
return. Investment decision can be long term or short-term. Along-
terminvestmentdecisionisalsocalledaCapitalBudgetingdecision
2. The three factors mentioned in the paragraph which are likely to reduce the
working capital requirements of his business are as follows:
a) Available of raw material:
b) Production cycle:
c) Credit availed:
Or
Dividend decision
Factors affecting dividend decision.
1. Earnings:
2. Stability of earnings:
3. Stability of dividends:
4. Growth opportunities:
5. Cash flow position:

28 Financial planning is the type of financial service that Subhash has offered to 4
Bhuvan.
2. The four points highlighting the importance of financial planning are as follows:
a) It ensures smooth running of a business enterprise by ensuring availability of
funds at the right time.
b) It helps in anticipating future requirements of a funds and evading business shocks
and surprises.
c) It facilitates co-ordination among various departments of an enterprise like
marketing and
production function, through well-defined policies and procedures.
d) It increases the efficiency of operations by curbing wastage of funds, duplication of
efforts, and
gaps in planning.

29 Reliefs 4
● To withdraw the hazardous goods from sale
● To provide replacement for the defective product.
● To refund the price paid for the product, or the charges paid for the service.
● To pay a reasonable amount of compensation for any loss or injury suffered
by the consumer due to the negligence of the marketer.
● Not to offer hazardous goods for sale.
 Responsibilities
● Insist for cash memo
● Exercise the right
● Cautious consumer
● Filing complaints

30 (a) Recruitment 4
Recruitment may be defined as the process of searching for prospective employees
and stimulating them to apply for jobs in the organisation.
(b)Workload analysis is a part of first step of staffing process i.e., estimating the
manpower requirements.
It involves assessment of the number and types of human resources necessary for
the performance of various jobs and accomplishment of organisational objectives.
(c) Orientation
Orientation involves giving a brief presentation about the company to the employee
and introducing him/her to his/her superiors, subordinates and the colleagues.
(d) Selection
Selection is the process of identifying and choosing the best person out of a number
of prospective candidates for a job.

31 Development of Each and Every Person to His or Her Greatest Efficiency and 6
Prosperity:
Taylor believed that each person should be scientifically selected. Then work
assigned should suit her/his physical, mental and intellectual capabilities. To increase
efficiency, they should be given the required training.
Science not Rule of Thumb:
Taylor believed that there was only one best method to maximise efficiency which
should be developed through study and analysis. The method so developed should
substitute ‘Rule of Thumb’ throughout the organisation. This results in tremendous
saving of human energy as well as wastage of time and material.
Techniques of scientific management:
Method Study
The objective of method study is to find out one best way of doing the job. The
objective of the whole exercise is to minimise the cost of production and maximise
the quality and satisfaction of the customer. For this purpose many techniques like
process charts and operations research etc are used.
Standardisation & Simplification: (Standardisation)
Standardisation refers to the process of setting standards for every business
activity.It can be standardisation of process, raw material, time, product, machinery,
methods or working conditions. These standards are the benchmarks, which must be
adhered to during production.

32 (a) Delegation 6
(b) Importance of delegation: (any four with explanation)
(i) Effective management
(ii) Employee development
(iii) Motivation of employees
(iv) Facilitation of growth
(v) Basis of management hierarchy
(vi) Better coordination

33 1. Planning 6
2. Steps involved in planning process:
 (i) Setting organizational objectives:
(ii) Identifying and evaluating alternative courses of action:
(iii) Selecting the best possible alternatives
Or
a. Planning is the function of management which is being discussed above.
Planning involves decision-making: Planning essentially involves the application of
rational thinking to choose the best alternative among the various available
alternatives in order to achieve the desired goals efficiently and effectively.
b. The limitations of planning are described below:
i. Planning may not work in a dynamic environment: The business environment is
dynamic in nature. Every organization has to constantly adapt itself to changes in its
environment in order to survive and grow. However, it is difficult to anticipate all the
likely future changes in the environment with the utmost accuracy. Hence, even with
planning, everything cannot be foreseen.
ii. Planning reduces creativity: The top management undertakes the planning of
various activities whereas the other members are expected to merely implement
these plans. This restricts the creativity of the middle-level managers as they are
neither allowed to deviate from plans nor are they permitted to act on their own.
iii. Planning involves huge costs: The process of planning involves a huge cost in
terms of time and money as detailed planning is based on a series of scientific
calculations. Moreover, it may include a number of related costs as well, like
expenses on boardroom meetings, discussions with professional experts and
preliminary investigations to find out the viability of the plan. As a result, the expenses
on planning may turn out to be much more than benefits derived from it.

34 (a) Societal Marketing Concept 6

The societal marketing concept holds that the task of any organisation is to identify
the needs and wants of the target market and deliver the desired satisfaction in an
effective manner so that the long-term well-being of the consumers and the society is
taken care of.
(b) Public Relations
Public relations involves a variety of programmes designed to promote or protect a
company’s image and its individual products in the eyes of the public. Concrete steps
are to be taken to monitor the attitude of the general public and generate positive
publicity.
(c) Other promotional tools that can be used by BB Ltd:
(Any two)
(i)Advertising – It refers to impersonal form of communication which is paid for by an
identified sponsor/marketer to promote some goods, services, or ideas.
(ii) Sales promotion : It refers to short term incentives, which are designed to
encourage the buyers to make immediate purchase of a product or service.
(iii) Personal Selling: Personal selling involves oral presentation of message in the
form of conversation with