JMS Commerce Classes

Sikandrabad. (U.P.)

JMS SURE SHOT SUCCESS SERIES REVISION PRACTICE PAPER 03

Class 12 - Business Studies
Time Allowed: 3 hours Maximum 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.

1. Devraj Automobiles aims to produce and sell 1,00,000 cars in 2019. To achieve this objective, the production [1]
department strives for timely production and sales department takes all possible steps to sell them. Due to
combined efforts of all the departments, the company is able to achieve its target. Which of the following point
of importance of management is highlighted in the given case?

a) Management increases efficiency b) Management creates a dynamic organisation

c) Management helps in achieving personal d) Management helps in achieving group goals

objectives
2. Avinav Mehta, Marketing Manager of Roop Cosmetics, is facing the problem of poor sales. What mode of [1]
communication he can adopt to target the large population?

a) Radio b) Television

c) Newspaper d) All of these

3. Assertion (A): Planning is closely connected with creativity and innovation. [1]
Reason (R): Before doing something, the manager must formulate an idea of how to work on a particular task.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

4. Statement I: Packaging refers to designing and developing the label to be put on the package. [1]
Statement II: Customer support services include after sales services, handling customer complaints and
adjustments, procuring credit services, maintenance services, technical services and consumer information.

a) Both the Statements I and II are not correct. b) Statement II is correct and Statement I is not
correct.

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 c) Both the Statements I and II are correct. d) Statement I is correct and Statement II is not
correct.
5. What is the first step in controlling process? [1]

a) Measurement of actual performance b) Analysing deviations

c) Comparing actual performance with d) Setting performance standards

standards
6. Choose the incorrect statement from the following about functions of a Stock Exchange: [1]

a) Ensures safety of transactions b) Contributes to economic growth

c) Provides scope for speculation d) Provides liquidity and marketability to new

securities
7. Identify the principle of management followed in the following pictorial representation. [1]

a) Remuneration b) Equity

c) The Degree of Centralization d) Authority and Responsibility

8. Assertion (A): It is essential for effective performance that a proper match is made between the nature of a job [1]
and the ability of an individual.
Reason (R): It is not necessary to define the work of different job positions and accordingly allocate work to
various employees.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

9. Joining a job marks the beginning of socialisation of the employee at the workplace. The employee is given a [1]
brief presentation about the company and is introduced to his superiors, subordinates and the colleagues. He is
taken around the workplace and given the change of the job for which he has been selected. This process of
familiarisation is very crucial and may have a lasting impact on his decision to stay and on his job performance.
Identify the two concepts of one of the functions of management highlighted above.

a) Promotion and Career Planning b) Performance Appraisal and Compensation

c) Placement and Orientation d) Training and Development

10. Which of the following statements is incorrect? [1]
i. A low Debt Service Coverage Ratio indicates better ability to meet cash commitments and consequently, the
company's potential to increase debt component in its capital structure.
ii. Use of higher debt increases the cost of equity.
iii. Low interest rates increase a firm's capacity to employ higher debt.
iv. None of the above

a) Option (i) b) Option (ii)

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 c) Option (iv) d) Option (iii)
11. Which of the following statements is incorrect? [1]

a) Capital Market refers to facilities and b) Primary Market is the Market where only
institutional arrangements through which buying of securities takes place. Securities
long-term funds, both debt and equity are can not be sold there.
raised and invested.

c) Secondary market is the market where d) Money Market is a market for short term
securities are sold by the company to the funds which deals in monetary assets whose
investor directly or through an intermediary. period of maturity is upto one year.
12. Temptations is a food joint in Imperial Mall in Bengaluru. It is becoming popular among students and working [1]
people due to healthy, on-the-go dishes on its menu like Paneer Wrap, Chickpeas Salad, Grilled Sandwiches,
etc. It has now decided to open two new branches in other parts of Bengaluru. Which financial decision has been
discussed in the above case?

a) Financing decision b) Long-term investment decision

c) Dividend decision d) Short-term investment decision

13. Statement I: The Consumer Protection Act 2019 provides for five rights of consumers. [1]
Statement II: Right to be assured means that the consumer has the freedom to access variety of products at
competitive prices.

a) Statement I is correct and Statement II is not b) Statement II is correct and Statement I is not
correct. correct.

c) Both the Statements I and II are not correct. d) Both the Statements I and II are correct.
14. Match the columns to identify the importance of coordination. [1]

Column I Column II

(a) Functional (i) When all departments have their own objectives, policies and their own style of
differentiation working.

(b) Specialisation (ii) When organisation is performing on large scale and more people are employed.

(iii) When more complexities of modem technology and diversity of tasks is to be

performed.

a) (a) - (i), (b) - (iii) b) (a) - (iii), (b) - (i)

c) (a) - (ii), (b) - (i) d) (a) - (i), (b) - (ii)

15. A.co. is manufacturing garments. The manager wants to increase profits by purchasing new high-speed [1]
machines or increasing the sale price or using waste materials in manufacturing stuffed toys. He decided that
using waste material is the best solution for him.
Identify the concept of management involved.

a) Planning b) Coordination

c) Organizing d) Directing
16. Which of the following statement is false? [1]

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 a. Service industries require less working capital.
b. Working capital requirement is higher in firms with shorter processing cycle.
c. A liberal credit policy results in larger working capital requirement.
d. Larger the lead time, larger shall be the amount of working capital required.

a) option (b) b) option (c)

c) option (a) d) option (d)

17. There are a number of incidental costs, like expenses on boardroom meetings, discussions with [1]
professional experts and preliminary investigations to find out the viability of the plan. Identify the
limitation of planning highlighted above.

a) Planning leads to rigidity b) Planning does not guarantee success

c) Planning involves huge costs d) Planning may not work in a dynamic

environment
18. Statement I: The important product decisions include deciding about the features, quality, packaging, labelling [1]
and branding of the products.
Statement II: The marketers have not only to decide about the objectives of price setting but to analyse the
factors determining the price and fix a price for the firms products.

a) Statement I is correct and Statement II is not b) Both the Statements I and II are not correct.
correct.

c) Statement II is correct and Statement I is not d) Both the Statements I and II are correct.
correct.
19. Borrowing @ 10% and the tax rate @ 30% means the after tax cost of debt is ________. [1]

a) 10% b) 3%

c) 7% d) 20%
20. Statement I: State Commission has a jurisdiction to entertain complaints where value of goods and services [1]
paid as consideration exceeds one crore but does not exceed ten crore rupees.
Statement II: District commission has a jurisdiction to entertain complaints where value of goods or services
paid as consideration does not exceed one crore rupees.

a) Both the Statements I and II are correct. b) Both the Statements I and II are not correct.

c) Statement I is correct and Statement II is not d) Statement II is correct and Statement I is not
correct. correct.
21. How is management all pervasive? [3]
OR
Geetika is working in a private sector bank. One of her key function relates to the 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.
22. Shrawan, a manager in a company, sets the targets for his subordinates without discussing it with them. He [3]
firmly tells them that if the task is not completed within time, then strict action will be taken against the
defaulter. Which form of leadership is he following?
OR

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 Explain the process of motivation.
23. State any three factors that determine the requirement of fixed capital of a company. [3]
24. Gopal, Mohan and Shyam are three friends having their separate small manufacturing units in an industrial [3]
estate. They are hard-working and honest and undertake their respective production activities following the good
practices of business. They use good quality raw materials and adopt standardised process. They fix the prices of
their products with a reasonable profit margin. But all of them are worried about the malpractices like
manufacturing sub-standard, duplicate, and defective goods by the fellow manufacturers. Therefore, they
decided to form an organisation with a constitution of its own which is free from government interference. This
organisation would encourage consumers to strongly protest and take action against unscrupulous, exploitative
and unfair trade practices of sellers.
State three other functions which may be performed by this organisation in addition to those mentioned
above.
25. Mega Ltd. holds an Annual Management Programme every year in the month of March in which the top [4]
managerial personnel formulate plans for the next year by analyzing and predicting the future to meet future
events effectively. As they are responsible for providing direction to the organization, facts are thoroughly
checked using scientific calculations. Detailed plans are prepared after discussion, with professional experts.
Preliminary investigations are also undertaken to find out the viability of the plan. Since it is an intellectual
activity requiring intelligent imagination and sound judgement so it is mainly done by the top management.
Usually rest of the members just implement the plans. Middle level managers are neither allowed to deviate from
the plans nor are they permitted to act on their own. The top management ensures that the expenses incurred in
formulating the plans justify the benefits derived from them.
State any two limitations and any two features of planning discussed above.
26. Explain briefly the relationship between controlling and planning. [4]
OR
Controlling is the last function of management. Do you agree? Explain.
27. There are three departments, Arts, Science and Commerce in a college. Dr. Sahil Budhiraja is the head of all the [4]
three departments. He is an M.Com., PhD. Dr. Rekha Sood is the Principal of the college. She always keeps this
in mind that whatever message she is to convey to the teachers should be routed through the medium of head of
the department. All teachers have also been instructed that they too should communicate with the Principal
through the medium of head of the department. Thus there is a pre-defined arrangement of communication in the
college. Dr. Budhiraja is looking after three departments of different nature. He is not able to control them
properly. A principal is also not satisfied with his performance.
Identify and explain two principles of management mentioned in the above paragraph.
Quote the lines of the identified principles.
28. What is meant by Leadership? State any two leadership styles. [4]
OR
Identify the need from the Maslow's Need Hierarchy in the following statements and also state the four assumptions
on which Maslow's theory is based.
i. These needs refer to affection, sense of belongingness, acceptance and friendship.
ii. It refers to the drive to become what one is capable of becoming.
iii. These needs include factors such as self-respect, autonomy status, recognition and attention.
iv. These needs provide security and protection from physical and emotional harm.

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29. As the number of people making online purchases has increased manifolds, there is a growing concern about the [4]
disposal and management of packaging waste. Every item bought is delivered with excess packaging and
sometimes even non-biodegradable materials are used.
In the context of above case:
a. Name the other two levels of packaging that the marketers may be using besides the immediate package.
b. Describe briefly any two points highlighting the functions of packaging.
c. State any two factors that should be kept in mind by the marketers while designing the packaging of its
products.

30. i. Define a Consumer as per the Consumer Protection Act, 2019. [4]
ii. As per the Consumer Protection Act, 2019, upto what value of defective goods or deficient services, can a
complaint be filed at District Commission?
iii. Within how many days can an appeal against the order of District Commission be made if any of the parties
is not satisfied by its order?
31. Anoop Gaur started ‘Cat’s Eye’, a company for providing cyber security solutions to businesses. Its objective is [6]
to prevent, detect, respond to cyber attacks and protect critical data. He was a hardworking software engineer
and an expert in cybersecurity. His reputation grew by leaps and bounds as he was not only a person of integrity
but also did his work with utmost honesty and sincerity. The business started growing day-by-day.
He was delighted when he was offered a big project by the Ministry of Science and Technology. While working
on the project he found that the volume of work made it impractical for him to handle all the work by himself.
Therefore, he decided to expand the team. The company maintained a close liaison with an engineering college
in the state. During a campus placement, Aarav and Pranshi were appointed to work for the new project.
He found the new employees capable, enthusiastic and trustworthy. Anoop Gaur was thus, able to focus on the
objectives and with the help of Aarav and Pranshi, the project was completed on time. Not only this Anoop Gaur
was also able to extend his area of operations. On the other hand, Aarav and Pranshi also got opportunities to
develop and exercise initiative.
i. Identify and explain briefly the concept used by Anoop Gaur in the above case which helped him in focusing
on the objectives.
ii. Also, explain any four points of importance of the concept identified in part (i).
32. Explain the concept of Business Environment and any three features of it. [6]
OR
Explain the features of demonetisation?
33. Pawan kumar was the Chief Executive Officer of Nath Traders. He was worried about the heavy expenditure on [6]
advertising. He asked his Finance Manager, Ankit to know the views of the Sales Manager and his team
regarding this expenditure. Ankit was thinking of calling a meeting with the Sales Manager and his team after
tea-break. But by chance at the time of tea-break, Ankit met with the Sales Manager and his team in the canteen.
They all discussed about this expenditure and finalised to give suggestion to reduce this expenditure.
Identify the type of organisation which helped the Finance Manager Ankit, the sales Manager and his team in
finalising the suggestion.
State its any four features.
34. Explain the two main segments of the NSE. [6]
OR

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Distinguish between primary and secondary markets.

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