Vidya Sagar Career institute Ltd.

Business Studies
CLASS - XII
====================================================================
MM : 80 TIME 3 HOURS
General instructions: Date : 13.01.2025
====================================================================
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
===================================================================

1. Rohan works as a production manager in Global Enterprises Limited. He has 1

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.
(C) The cost of production is less than ₹150 per unit
(D) All of the above

2. Statement I: Delegation is the entrustment of responsibility and authority to 1

another, and 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.

3. ‘Dovex’ was a large company with a renowned name in healthcare industry, 1

specialising in the development and production of life saving medications and
medical devices. With a strong reputation for ethical practices, ‘Dovex’
attracted a large number of investors who had great faith in the company’s
future. This allowed ‘Dovex’ to raise capital easily from the market whenever
expansion or new projects were to be undertaken. As a result, it could pay
high dividends to the shareholders.
The factor affecting dividend decision discussed above, which allowed ‘Dovex’
to pay high dividends to the shareholders is :
(A) Cash flow position
(B) Stock market reaction
(C) Legal constraints
(D) Access to capital market
4. ‘SK Builders’ became the market leader in the designer house segment as it 1
was the first to recognize the need of using Artificial Intelligence in designing
houses in the changing environment of technological advancement. This
highlights the following point of importance of business environment :
(A) It helps to identify threats and early warning signals.
(B) It enables the firm to identify opportunities and getting the first mover
advantage.
(C) It helps in tapping useful resources.
(D) It helps in improving performance.

5. Choose the incorrect statement from the following about functions of a Stock 1
Exchange :
(A) Provides liquidity and marketability to new securities
(B) Ensures safety of transactions
(C) Contributes to economic growth
(D) Provides scope for speculation

6. Match the terms given in Column I with their meanings in Column II : 1

Column I Column II
1. Placement (i) Introducing the selected employee to other
employees and familiarising him with the
rules and policies of the organisation

2. Recruitment (ii) It refers to the employee occupying the

position or post for which he/she has been
selected
3. Orientation (iii) Evaluating an employee’s current and/or past
performance as against certain
predetermined standards

4. Performance (iv) The process of searching for prospective

Appraisal employees and stimulating them to apply
for jobs in the organization
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-(ii), 2-(iv), 3-(i), 4-(iii)
(D) 1-(ii), 2-(i), 3-(iv), 4-(iii)

7. Q. Statement I: Controlling ensures that activities in an 1

organization are performed as per the plans.
Statement II: Controlling function of a manager is a pervasive function.
Choose the correct option from the options given below:
(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

8. ‘JKSD India Ltd.' recently introduced a new range of 'fresh from kitchen' jams, 1
ketchups, salad dressings and peanut butter, etc. They appointed
salespersons to contact prospective customers in leading malls to create
awareness about their products and develop product preferences with the
aim of making sales.
 Which tool of promotion is being used by 'JKSD India Ltd.' to market its
products:
(A) Advertising (B) Personal Selling
(C) Sales Promotion (D) Public Relations

9. The selection tests which are used to measure individual's potential for 1
learning new skills are called:
(A) Aptitude Tests (B) Intelligence Tests
(C) Personality Tests (D) Interest Tests

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

11. 'Mudro Infratech' got a short-term contract for building two villas within a 1
period of ten months with the expectation to earn a huge amount of profit.
The Works Manager accepted this challenge and completed the work within
the given time period. The profit of the company went up by 40% due to this
temporary order. The Finance Manager was aware that the company would
not earn this huge profit in the near future. So, he decided not to increase
dividend per share as earnings for the year had gone up, but not the earning
potential of the company. He also knew that this increase in earnings was
temporary in nature.
The factor affecting Dividend Decision being highlighted above is:
(A) Cash flow position (B) Shareholders' preference
(C) Growth opportunities (D) Stability of dividends

12. Niyati is working as a teacher in a school in Mansarovar Garden. She always 1

tells the children at the school not to pollute the environment, and not to
throw wrappers of chips and chocolates here and there. She always carries a
bag with her to collect the wrappers and put them in the dustbin. By doing
this, which responsibility of a consumer is she discharging:
(A) Reading labels carefully (B) Asserting to get a fair deal
(C) Respecting the environment (D) Being honest in the dealings

13. Assertion(A): A firm’s ability to borrow at a lower rate increases its capacity to 1
employ higher debt.
Reason(R): Less debt can be used if debt can be raised at a lower rate.
(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.

14. Which of the following statements is not highlighting the importance of 1

financial planning:
(A) It helps in forecasting what may happen under different business situations.
(B) It helps in avoiding business shocks and surprises and helps the company in
preparing for the future.
(C) It provides a link between investment and financing decisions on a
continuous basis.
 (D) Detailed plans of action prepared under financial planning increases waste,
duplication of efforts and gaps in planning.

15. Lyka Ltd. launched its new range of herbal shampoos at the beginning of the
year. As per legal framework, Lyka Ltd. provided the name and address of the
manufacturer, the weight, manufacturing date, expiry date, maximum retail
price etc. on the package and label of the herbal shampoo. The consumer
right highlighted above is:
(A) Right to choose (B) Right to be informed
(C) Right to consumer education (D) Right to safety

16. Umang was working as a ‘Production Manager' at ‘LG Papers Ltd’. The 1
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) Organizing
(C) Directing (D) Controlling

17. When the proportion of debt and equity is such that it results in an increase in 1
the value of equity share the is/are said to be optimal.
(A) working capital (B) Fixed capital
(C) capital structure (D) Both (a) and (b)

18. Who, of the following, cannot be considered a consumer? 1

(a) A person who buys things to further sell them consideration.
(b) A person who gets things without consideration.
(c) A person who uses things without the permission of the purchasers.
(d) All of the above

19. Keya Ltd. is a large organisation manufacturing a popular brand of desi ghee 1
and supplying it to various states of India. They manufacture 10,000 litres of
desi ghee every day and pack in cartons of 250 ml, 500 ml and 1 litre sizes.
The production manager ensures that one out of every ten cartons of each
size is checked for quality control everyday.
The step of the controlling process discussed in the above para is:
(a) Setting performance standards
(b) Measurement of actual performance
(c) Comparison of actual performance with standards
(d) Analyzing deviations

20. 1

The above mark is used on which type of products?

 (A) Electronic products (B) Eco-friendly products
(C) Agricultural products (D) Gold Jewelry

21. State any three features of business environment. 3

OR
State any three features of 'Demonetization'.

22. Explain the following as factors affecting 'Financing Decision: 3

(i) Fixed operating costs and
(ii) Cash flow position of the company

OR
Explain the following as factors affecting 'Dividend Decision:
(i) Stability of earnings
(ii) Growth Opportunities

23 ‘Zeto Ltd.’ offers its employees shares at a price which is less than the market 3
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.

24. How does planning lead to rigidity and reduce creativity? Explain 3

25. Give the meaning of ‘Autocratic’ and ‘Democratic’ Style of leadership. 4

OR
What is meant by ‘directing’ function of management? State any three points 4
highlighting the importance of ‘directing’ function.

26. Give any four points of difference between advertising and personal selling. 4

27. ‘Verfab' was a garment manufacturing company known for its high quality 4
fashionable clothing. They had been in the fashionable clothing business for the last
23 years. The company was earning enough profit and the demand for their
fashionable clothing was rising tremendously. The company was expanding and
needed to hire new talent to meet the growing demand. They followed a
comprehensive process to ensure that they brought in the best candidates.The
process began with a first-round evaluation of applications. The Human Resources
team carefully reviewed each candidate's qualifications, experience and suitability
for the available positions. It eliminated unqualified or unfit job seekers based on
the information supplied in the application forms and shortlisted 21 candidates
who met the basic requirements.
The shortlisted candidates were then asked to take a series of tests that attempted
to measure certain characteristics of individuals, ranging from manual dexterity to
intelligence to personality. These tests included assessments of their sewing skills,
attention to detail, and knowledge of garment manufacturing processes. 15
candidates who performed well in the tests were invited for a formal in-depth
conversation with the senior staff from the design team. Thereafter, 10 candidates
were found suitable for the job position available. Since these 10 candidates had
cleared all the above steps, 'Verfab' conducted verification by contacting their
previous employers to confirm the details the candidates had provided. Thereafter,
a decision was made to choose 8 candidates who were best fitted for the roles.
Explain the steps of the comprehensive process discussed above till the verification
stage, to ensure that the company brought in the best candidates to meet the
growing demand for fashionable clothing.
28. Setting objective is the first step in the process of one of the significant function of 4
management.’
a. Identify the function of management referred above.
b. State the next three steps of the process.

OR
Explain the following types of Plans.
a. Policy b. Method

29. Praveen and Naveen are friends. Praveen became a professional after completing 4
his MBBS from ‘Hindu Medical College'. Naveen completed his MBA from IIM,
Bangalore. In a discussion with Praveen, Naveen said that he too is a professional
and is working with a multinational company as a senior manager getting a good
package. Praveen was not convinced about the fact that Naveen was a professional
in spite of being aware that nowadays there is increasing emphasis on managed
business concerns. Praveen gave three reasons in support of his opinion. Explain
the four reasons that Praveen might have given.

30. Explain briefly the relationship between controlling and planning 4

31 Explain the four elements of marketing mix. 6

OR
Explain any four factors affecting determination of the price of a product or service.

32. Ankur Sachdeva did his MBA from ITB University. He decided to apply his 6
knowledge of scientific management in the fast food restaurant chain 'Coffee Bean'
set up by him. This restaurant was providing burgers, fries, shakes etc, as a part of
its menu. Now a days people are quality conscious, so he was using standardised
raw materials, processes, methods, working conditions, machinery etc. The
objective was to establish standards of excellence. By doing this he was not only
able to reduce the cost but was also able to provide new varieties of burgers, fries
and shakes leading to increased turnover.
Ankur Sachdeva also believed that there was only one best method
to maximise efficiency. As a result he developed best way of grilling burgers,
cooking fries and preparing shakes. His main objective was to maximise the
satisfaction of customers, which he was able to achieve.
Not only to learn the best way of doing a job, but to perform their tasks efficiently,
'Coffee Bean' regularly invests in training and development programmes to equip
employees with the necessary skill and knowledge. 'Coffee Bean' believed that
efficient employees will produce more and earn more. This will ensure their
greatest efficiency and prosperity for both company and workers.
The above case highlights the use of Scientific principles and techniques by 'Coffee
Bean'. Explain any one such principle and two techniques.

33. Raman Industries is a company dealing in office furniture. The company chose to 6
diversify its operations to improve its growth potential and increase market share.
As the project was important, many alternatives were generated for the purpose
and were thoroughly discussed amongst the members of the organisation. After
evaluating the various alternatives, Sukhvinder, the Managing Director of the
company, decided that they should add ‘Home Interiors and Furnishings’ as a new
line of business activity.
a. Name the framework, which the diversified organisation should adopt, to
enable it to cope with the emerging complexity? Give one reason in support
of your answer.
b. State any two limitations and two benefits of this framework.
 OR
Preeti started her own cooking channel on Youtube 'Mood Art'. As her subscribers
increased, she was not in a position to manage everything on her own. She hired
Rahul and Riya to help her with filming, editing, lighting and content research. She
granted authority to them to operate with in prescribed limits. She was thus, able to
use her time on high priority activities like developing new recipes and content
development etc. As a result, Rahul and Riya were given opportunities to develop
and exercise initiative. Preeti was now able to focus on objectives and meet the
target of achieving a subscriber base of one million in six months.
(a) Identify the concept of management used by Preeti to focus on objectives of
her business and meet her targets.
(b) Explain any five point of importance of the concept identified in (a) above.

34. Explain the regulatory and development functions of SEBI. 6