SATHYAM INTERNATIONAL SCHOOL – CBSE

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Class: XII B Cumulative Test Question Paper 2024-25

Business Studies (Subject Code-054)
Maximum Marks: 80 Time: 3 hours
General Instructions:
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.
7. Attempt all parts of the questions together
SECTION- A (1 mark)

1. Successful organisations do not achieve goals by chance but by following a deliberate process known as

(a) Planning (b) Co-ordination (c) Controlling (d) Management

2. Management contains a series of interrelated functions that include

(a) Planning (b) Organising (c) Directing (d) All of the above

3. Rohan works as a production manager in Global Enterprises Limited. He has been given the task of
getting
1000 units of hand-woven table mats manufactured at the cost of ₹150 per unit within 10 days. In order to
be acknowledged as an effective manager, he must ensure that
(a) The cost of production does not exceed ₹150 per unit

(b) The work is completed within 10 days even at higher cost per unit

(c) The cost of production is less than ₹150 per unit

(d) All of the above

4. Management is considered important because

(a) It helps an organisation to adapt to the changes (b) Seeks to integrate individual efforts

(c) It helps in development of the society (d) All of the above

5. Identify the process that provides the requisite amount, quality, timing and sequence of efforts, which
ensures that planned objectives are achieved with a minimum of conflict.
(a) Management (b) Planning (c) Co-ordination (d) Controlling

6. By profession, FW Taylor was a

(a) Mechanical engineer (b) Mining engineer (c) Psychologist (d) Human resource officer

7. The principles of pure science is considered to be _________ in nature.

(a) Flexible (b) Rigid (c) Creative (d) None of the above

8. The principles of management enhance the understanding of relationship between human and material
resources for the achievement of organisational goals. Identify the feature of the principles of
management being described in the given statement.
(a) Cause and effect relationships

(b) Optimum utilisation of resources and effective administration

(c) Formed by practice and experimentation

(d) Mainly behavioural

9. 13. ‘Rule of thumb’ refers to

(a) Use of personal judgement in handling management issues

(b) Adopting a hit-and-trial approach to resolve management problems

(c) Both of the above

(d) None of the above

10. Assertion [A]: Unity of Command with the objective of one head and one plan ensures unity of action
and coordination.
Reason [R] : As dual subordination is avoided through Unity of Command, there are no confusions
regarding the task to be done.
a) Both Assertion [A] and Reason [R] are true and Reason is the correct explanation of Assertion.
b) Both Assertion [A] and Reason [R] are true but Reason is not the correct explanation of Assertion.
c) Assertion [A] is true but Reason [R] is false
d) Assertion [A] is false but Reason [R] is true
11. Which of the following is not a part of the business environment of business?
(a) Customers (b) Suppliers (c) Competitors (d) None of the above
12. Identify the point of significance of management illustrated in the picture.

a) Management helps in achieving group goals

b) Management helps in achieving personal objectives

c) Management helps in development of society

d) Management increases efficiency

13. The Government of India launched “Make in India” initiative in September, 2014 to increase foreign
direct investment (FDI) in 25 sectors. As of April, 2015, FDI inflow in India increased by 48% since the
launch of “Make in India” initiative.
Identify the concept being described in the above lines, with regard to inflow of FDI.
(a) Demonetisation (b) Privatisation (c) Liberalisation (d) Globalisation
14. The growing awareness about healthcare has led to an increase in the demand for healthcare products
and services in the country. Identify the feature of business environment being described in the above
case.
(a) Dynamic nature (b) Uncertainty (c) Relativity (d) Interrelatedness
15. 2. Which of the following is not a component of specific forces of business environment?
(a) Technological conditions (b) Customers (c) Employees (d) Investors
16. Which of the following is not a benefit of planning?
(a) Planning reduces overlapping and wasteful activities.
(b) Planning is a mental exercise.
(c) Planning provides directions.
(d) Planning reduces the risks of uncertainty.
17. Identify the correct sequence of steps involved in the planning process.
(a) Evaluating alternative courses, Identifying alternative course of actions, Setting objectives, Developing
premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative courses, Developing
premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating
alternative courses
(d) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating
alternative courses
18. Name the type of budget which is prepared to determine the net cash position.
(a) Purchase budget (b) Sales budget (c) Cash budget (d) Production budget
19. The government has been doubling down on its efforts to switch to 100% electric vehicles by 2030.
Many companies such as Tata Motors, Kinetic Motors, Maruti Suzuki and Hyundai Motors are all
readying their EV models for a 2020 launch in order to support the plan. Identify the type of plan being
described in the above lines.
(a) Method (b) Strategy (c) Programme (d) Objective
20. Which statement is true?
(a) Planning and controlling are forward looking.
(b) Planning and controlling are backward looking.
(c) Both [a] and [b]
(d) Planning is forward looking whereas, controlling is backward looking.

SECTION – B
21. Define management.
22. How is the principle of ‘Unity of Command’ useful to management? Explain briefly.
23. Briefly explain the following
(a) Liberalisation (b) Privatisation (c) Globalisation
24. Art auto company C Ltd is facing a problem of declining market share due to increased competition
from other new and existing players in the market. Its competitors are introducing lower priced models for
mass consumers who are price sensitive. For quality conscious consumers, the company is introducing new
models with added features and new technological advancements.
a. Prepare a model business plan for C Ltd to meet the existing challenge. You need to be very specific
about quantitative parameters. You may specify which type of plan you are preparing.
b. Identify the limitations of such plans.
c. How will you seek to remove these limitations?
SECTION – C
25. Explain the features of management that do not establish it as a profession.
26. What are the features on Principles of management?
27. What is the role of the political environment in shaping the business?
28. Explain the features of planning.
29. Do you think planning can work in a changing environment?
30. What are the essential features of
(a) Liberalisation
(b) Privatisation
SECTION - D
31. Co-ordination is the essence of management. Do you agree? Give reasons.
32. Explain any four points regarding significance of Principles of management.
33. (A) Briefly discuss the impact of Government policy changes on business and industry.
(OR)
(B) How would you characterise business environment? Explain with examples, the difference between
general and specific environment.
34. (A) Art auto company C Ltd is facing a problem of declining market share due to increased competition
from other new and existing players in the market. Its competitors are introducing lower priced models for
mass consumers who are price sensitive. For quality conscious consumers, the company is introducing new
models with added features and new technological advancements.
a. Prepare a model business plan for C Ltd to meet the existing challenge. You need to be very specific
about quantitative parameters. You may specify which type of plan you are preparing.
b. Identify the limitations of such plans.
c. How will you seek to remove these limitations?
(OR)
(B) Is planning worth the huge costs involved? Explain.