STEPPING STONES HIGH SCHOOL

PRE BOARD IV (2024-25)

Class: XII Time: 3 Hrs. Subject: Business Studies (054) Max Marks: 80
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

Q No Mks

1 Assertion (A) and Reason (R), and choose one of the correct alternatives given below: 1
Assertion (A): A consumer has the right to have complete information about the product
he/she intends to buy.
Reason (R): It comes under the right to seek redressal.
Alternatives:
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 and 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

2 Which of the following is not a limitation of Planning? 1

(a) Rigidity (b) Costly
(c) Time consuming (d) Basis of control

3 __________ is the joint programme between the educational institutes and the business 1
firms.
(a) Vestibule training (b) Internship training
(c) Apprenticeship programme (d) None of these

4 Even after the best efforts of the employees, the standards could not be achieved. An 1
effective control system of management found that they needed to be reframed as they
were unrealistic. Which point of importance of control is highlighted?
(a) Controlling helps in accomplishing organizational goals.
(b) Controlling helps in making efficient use of resources.
(c) Controlling helps in judging accuracy of standards.
(d) Controlling helps in ensuring order and discipline.
5 With delegation_______ is transferred from superior to subordinate but_______, remains 1
with the superior only
(a) Authority; Accountability (b) Responsibility; Accountability
(c ) Accountability, Responsibility (d) ResponsibilityAuthority

6 Pranav has achieved his monthly sales target well in advance. A letter of appreciation was 1
given to him by the company. His name and photograph was also exhibited on the notice
board. Which type of incentive is given to Pranav by the Company?
(a) Employee empowerment (b) Employee participation
(c) Career advance opportunity (d) Employee recognition programme

7 Statement I: A consumer should look for ISI mark on electrical goods. 1

Statement II: Consumer protection is not important for businessmen.
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 true (d) Both the statements are false

8 Which of the following is not an advantage of delegation? 1

(a) Effective management (b) Better control
(c) Employee's development (d) Basis of management hierarchy

9 _________ is the last step in planning process 1

(a) Setting up objectives (b) Follow up action
( c) Taking corrective action (d) Establishing reporting relationships

10 Which of the following is not an advantage of functional organisational 1

structure? (a) Occupational specialization (b) Departmental control and
coordination (c) Ease in fixation of responsibility (d) Ease in training of
employees

11 ________ is not an advantage of packaging of a product. 1

(a) Facilitates use of product (b) Status symbol (c) Prevents from spoilage,
pilferage, damage, etc. (d) Helps in promotion of product

12 Match the techniques of scientific management in Column I with their objectives in 1

Column II.
COLUMN 1 COLUMN 2
A Method study i Elimination of
unnecessary
movements
B Motion study Ii Determination of
standard time for a
well defined job
C Time study iii Find out one best
way of doing the
job
(a) A-(i),B-(ii),C-(iii) (b) A-(iii),B-(i),C-(ii)
(c) A-(iii),B-(ii),C-(i) (d) A-(ii),B-(iii),C-(i)

13 Which is the incorrect statement among the following? 1

(a) Delegation empowers an employee to act for his superior.
(b) Delegation is a pre-requisite to the efficient functioning of an
organisation. (c) Delegation helps in expansion and growth of organisation.
(d) Delegation means abdication.
14 Management consists of a series of composite but separate functions, viz., planning, 1
organising staffing and controlling. This highlight the following feature of

management_________
(a) Pervasive (b) Continuous
(c) Goal-oriented (d) Multi-dimensional

15 Which of the following standardisation marks is used for gold 1

jewellery? ( a) ISI (b) FPO (c) Hallmark (d) AGMARK

16 Read the following statements carefully. 1

Statement I: Floatation cost is the chance that a firm would fail to meet its payment
obligations.
Statement II: Higher use of debt decreases the fixed financial charges of a
business Choose the correct option from the options given below:
(a) Statement I is true and It is false (b) Statement II is true and I is
false (c) Both the statements are true (d) Both the statements are false

17 Megha Informatics Ltd. issued prospectus for the subscription of its shares for ₹ 500 1
croresin The company shares to of all the misleading 20 crores and 3 years. Which
prorata basis Later SEBI inspected the prospectus and found some October 2019. The
issue was oversubscribed by 20 times. applicants statement about the management of the
company in it. SEBI imposed a penalty of Rs 2 crores banned its two executive directors
from dealing in securities market for 3 years.Which function is performed by SEBI in the
above case?
(a) Development function (b) Protective function
(c) Both the statements are true (d) Both (b) and (c)

18 Identity the characteristic of profession being highlighted in the picture given below. 1

(a) Well defined body of knowledge (b) Restricted entry (c)

Professional association (d) Ethical code of conduct

19 Arrange the following steps in the process of Planning in the correct 1

sequence: (i) Developing premises (ii) Identifying alternative courses of
action
(iii) Setting objectives (iv) Evaluating alternative courses
Choose the correct option:
(a) (i), (i), (ii), (iv) (b) (ii), (iii), (i, (iv)
(c) (iii), (i), (iv), (ii) (d) (iv), (ii), (i), (iii)

20 A consumer can file a suit in _________ when the value of goods and service along with 1
the compensation claimed does not exceed 1 crore.
(a) State Commission (b) District Commission (c) National Commission (d) Supreme
Court

21 Discuss any three points of importance of Financial Planning to an organisation 3

22 A recent rate cut in the interest on loans announced by the Banks encouraged Amit, a 3
science student of Progressive School to take a loan from State Bank of India to
experiment and develop cars to be powered by fuel produced from garbage. He developed
such a car and exhibited it in the Science Fair organised by Directorate of Education. He
was awarded first prize for his invention. Identify and briefly explain two dimensions of
business environment discussed in the above case.
Or
In the present day market, the retailers have direct link with the suppliers who replenish
their stocks as and when needed and at the same time the manufacturers follow flexible

manufacturing stem. This has been possible due to the changes in one of the dimensions
of business environment. Identify and explain the dimension.

23 Explain the elements of delegation. 3

24 Explain any three elements of process of communication other than sender and 3
receiver OR
What is meant by recruitment of employees?

25 Capital budgeting decisions are capable of changing the financial fortunes of a concern. 4
Justify giving reasons.

26 Sneha Ltd after a lot of research work,developed a synthetic substitute for leather.By 4
doing this it not only took into the sentiments of people but also ensured that animals are
not hurt.It launched a complete new range of bags in the market.It named it bags
Pure-Sure which clearly conveyed to the consumers the message.Pure for Sure.To enable
the consumer identify its bags,even from distance,it covered them in a specially designed
translucent covers that would not only protect it from the dust but will also attract
consumers.
(a) Identity and trietly explain the elements of Product mix discussed in the above case,by
quoting the relevant lines.
(b) Explain the marketing philosophy followed by Sneha.

27 It is balancing and keeping together the team by ensuring suitable allocation of tasks to t 4
members and seeing that the tasks are performed with harmony among the members.
Which concept of management is being referred to? Describe its features. Or
Explain the Fayol's management principle of 'Initiative' and 'Stability of Personnel'.

28 28. Sunaina Ltd. had plans to manufacture and provide the best quality artificial jewellery 4
to consumers. For this, its management identified that the following steps needs to be
performe i) Procurement of raw material, its conversion into synthetic element,
processing,
marl research, to create awareness in the consumers about their product,
etc. ii) It then created small groups having the activities of similar nature.
iii) To ensure achievement of the goals, it allocated the work to the different positions
created
earlier.
iv) They knew that mere allocation of duties is not enough. To achieve the goals, it is
necess that there exists a superior subordinate relationship. They, therefore, created it.
State the steps of the function of management performed above by quoting the lines. OR
"If we delegate the authority, we multiply it by two; if we decentralise it, we multiply it
 by many”.How?

29 Mr. Mayank, the Marketing Manager, spends a lot of time in planning for the long-term 4
goals of his department as he has given complete autonomy to its salesmen to make their
own decisions while they are in the field?
(a) Identify and briefly explain the style of leadership displayed by Mr.
Mayank. (b) Also, state any three benefits of the leadership style identified in
part (a).

30 Identify the various important selection tests in the following statements. (a) It measures 4
an individual's potential for learning new skills and indicates a person's capacity to
develop.
(b) It measures the existing skills of an individual and level of knowledge and proficiency
in the areas of professions or technical training.
(c) It is a psychological test used to measure the level of intelligence quotient of an

individual. (d) It provides clues to a persons emotions, his/her reactions, maturity and
value system etc

31 Read the statements given in point 1 and 2, and answer the questions that follow: i) 6
Making certain assumptions about the future is a step in the process of one of the
significant functions of management.
(a) Identify the step of the function of management referred above. (b) Explain the two
steps immediately succeeding the step referred to in the above statement. ii) This function
is required at all levels of management however its scope differs at different levels.
(a) Identify the feature of the function of management referred above.
(b) Also, explain two features other than the one specified above.
32 Anand Ltd., the manufacturer and suppliers of the health drinks, faced a lot of 6
competition the market. Its brand which held a good position in the market started
declining due to the availability of close substitutes in abundance. To tackle it, Mr.
Anand approached a marketing
firm which gave him the following suggestions: To give his brand a big feel, his company
should sign a celebrity, preferably a sportsperson who would endorse their product
through a TV commercial. They also need to link the consumers with their business
through special sales force when would play three roles i.e. persuasive, service and
informative.

(a) Which element of Marketing mix is being referred to? Explain it.

(b) Identify and discuss its components being referred to.

Or
Ms. Pihu Jain intends to start an enterprise that produces chocolates. Initially, in order to
asses the taste and preferences of the people about the chocolates, she used social media
and online surveys. Thereafter, she prepared a detailed SWOT (strengths, weaknesses,
opportunities and threats) analysis of her enterprise to devise a strategy that will give her
an edge over the competiton, Based on her analysis of the market, she decided to launch
sesame and jaggery based chocolates under the brand name 'Desi Delight'. She has
decided to fix up the price of chocolates relatively at lower level in the beginning and
later on as the demand picks up she may revise the prices.
(a) Identify and give the meanings of the elements of marketing mix being taken into
consideration by Ms. Pihu Jain.
(b) Explain briefly the functions of marketing highlighted here.

33 Drishant Ltd, manufacturer of electrical gadgets, had plans to expand its area of 6
operation beyond the local market by covering the consumers throughout the country.
For this, it needed additional funds both for long term and short term. After having
detailed analysis of the environment, it found that the per capita income of people had
increased over a period of time and their existed a vast group of people in the economy
who were ready to lend their surplus funds directly to them. The company, therefore,
decided to fulfill their financial requirements through this sector of the economy by
creating the financial assets. (a) Identify the sector of the economy through which
Drishant Ltd. is planning to raise funds. (b) State the components of the sector
identified in part (a).
(c) Differentiate between the components identified in part (b)
Or
Neelabh is engaged in "Transport Business' and transports fruits and vegetables to
different states... Stating the reason in support of your answer, identify the working
capital requirements of Neelabh. Neelabh also wants to expand and diversify his
transport business, explain any four factors that will affect his fixed capital
requirements.

34 (a) Explain any two importance of business environment from the 6

following: (i) Improvement in performance
(ii) Helps in tapping useful resources
(iii) Helps in planning and policy formulation
(b) Distinguish between social environment and economic environment with an example
of each.
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