PRACTICE QUESTION PAPER

BUSINESS STUDIES

Time: 3 Hrs.

Class: XII

M.M.: 80

Q1.

An organisation consists of diverse individuals with different needs, who join the organisation for different purposes, but as members of the organisation, they work together to achieve organisational goal.
Which feature of management is being highlighted?
(a) Goal Oriented
(b) Pervasive Function
(c) Group Activity
(d) Continuous Process

Q2.

Introduction of mobile phones has adversely affected the business of watches and cameras.
Which dimension of business environment is related with the given case?
(a) Political Environment
(b) Social Environment
(c) Technological Environment
(d) Legal Environment

Q3.

Business environment is said to be uncertain as:
(a) Different elements of business environment are closely inter-related
(b) It differs from country to country
(c) It is difficult to predict future happenings especially when environment changes are taking place too frequently
(d) It consists of numerous interrelated forces which arise from different sources

Q4.

One of the following is not a relevant step of delegation of authority:
(a) Determination of results expected
(b) Punishment for wrong work
(c) Authorisation for action
(d) Assignment of duties

Q5.

The function of staffing is performed by:
(a) Top level management
(b) Middle level management
(c) Operative level management
(d) All the levels of management

Q6.

A clerk of the company is now appointed to the post of Chief Accountant.
Which method of recruitment is being used?
(a) Direct recruitment
(b) Casual callers
(c) Transfer
(d) Promotion

Q7.

Poor telephone connection during the process of communication is an example of:
(a) Decoding
(b) Media
(c) Encoding
(d) Noise

Q8.

Management by Exception states that management should:
(a) Check everything without exception
(b) Invariably take corrective action without exception
(c) Accept exceptions in emergencies
(d) Give attention to significant deviations

Q9.

Assertion (A): Controlling can prevent deviations.
Reason (R): Controlling helps to minimise deviations by taking actions and decisions that reduce their recurrence.

(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Q10.

Financial decision-making is concerned with making the following decisions:
(a) Financing decision
(b) Investment decision
(c) Dividend decision
(d) All of these

Q11.

Situation of favourable financial leverage arises when:
(a) Return on investment = Cost of debt
(b) Return on investment > Cost of debt
(c) Return on investment < Cost of debt
(d) None of these

Q12.

In which type of business, more investment in fixed assets is required?
(a) Manufacturing
(b) Trading
(c) Both (a) and (b)
(d) None of these

Q13.

Assertion (A): More working capital is required in highly competitive market.
Reason (R): Competition forces a firm to adopt strict credit terms.

(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Q14.

Harshit is keen to expand his business. He prepared an estimate of sales for the next three years. Based on the sales estimates, he estimated the expected profits which helped him in knowing how much fund requirements would be met internally and how much funds are to be raised from external sources.
The concept of financial management discussed is:
(a) Investment decision
(b) Financing decision
(c) Financial leverage
(d) Financial planning

Q15.

Cipla Ltd., a leading air conditioner manufacturing company, urgently requires funds to meet its short-term financial obligations.
Which market should Cipla Ltd. approach?
(a) Secondary market
(b) Money market
(c) Primary market
(d) Stock exchange

Q16.

Folks Ltd. is a leather bags manufacturing company. The company is polluting nearby water bodies by releasing untreated sewage water.
Which marketing concept is being violated?
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

Q17.

Gaurav went to a mobile shop to buy a smartphone. The shopkeeper forced him to buy a particular brand.
Which consumer right has been exploited?
(a) Right to choose
(b) Right to be heard
(c) Right to be informed
(d) Right to seek redressal

Q18.

Appeal against the order of National Commission can be done in:
(a) District court
(b) High court
(c) Supreme Court
(d) State commission

Q19.

Mehak bought a laptop for ₹75,000 which was defective. Her complaint was rejected by District Commission. She wants to appeal after 60 days.
Where can she appeal?
(a) Supreme Court
(b) National Commission
(c) State Commission
(d) Cannot appeal

Q20.

Statement 1: The campaign ‘Jago Grahak Jago’ comes under right to be informed.
Statement 2: Unless a consumer fulfils responsibilities, it may not be possible to enforce rights.

(a) Both statements are true
(b) Both statements are false
(c) Statement 1 true, Statement 2 false
(d) Statement 2 true, Statement 1 false

Q21.

Identify and explain the dimension of business environment in the following cases:
(i) Manufacturing firms producing colours during Holi
(ii) Luxury car showroom in low per capita income economy

Q22.

A. Bharti Airtel refreshed its ₹149 prepaid plan.
(a) Name the type of plan
(b) Explain any two other types of plans

B. Identify the type of plan in the given cases:
(i) Hospital prioritising senior citizens
(ii) Training middle-level managers through software
(iii) Chronological, situation-specific plan

Q23.

A. State three reasons why it is essential to motivate employees

B. Discuss any three needs under Maslow’s Need Hierarchy Theory

Q24.

Steelone Enterprises increased production and declared liberal credit policy.
(a) Identify three factors affecting working capital
(b) State whether working capital requirement will be high or low with reasons

Q25.

Mahesh operated double shifts to meet urgent order but cost increased.
(i) Was the target achieved effectively and/or efficiently?
(ii) State reason quoting lines from the case

Q26.

Mohan planned a desert cooler business and analysed market demand.
(i) Identify the function of management
(ii) State next three steps of the process involved

Q27.

A. Identify two selection tests and the document given to Rajeev

B. Identify type of training and classify as On-the-Job or Off-the-Job training

Q28.

A reputed hostel provides medical aid and free education to employees’ children.
(a) Identify the incentive
(b) State its category
(c) Name two other incentives of same category

Q29.

A. Explain why controlling is considered the backbone of management

B. Explain the steps in the process of controlling

Q30.

Energy Drinks India Ltd. marketing Indian traditional flavour drinks.
(a) Identify the marketing concept
(b) Explain any two elements

Q31.

Ravi faces employee retention issues due to informal management.
(i) Identify and explain two principles of management not followed
(ii) Identify the principle of management followed

Q32.

A. DEF Ltd. follows a formal organisation structure.
(i) Identify type of organisation
(ii) State three benefits and two limitations

B. Happy Homes Industries diversified operations.
(i) Name the organisation structure
(ii) State two limitations
(iii) State three merits

Q33.

Reena invested in stock market through DEMAT account.
(i) Identify the steps in trading procedure discussed
(ii) State next four steps

Q34.

A. Company ignored after-sales service affecting goodwill.
(i) Identify the promotional tool used
(ii) Explain any two other tools

B. Ananya marketed wheat using storage, packaging and branding.
Explain three functions of marketing involved.

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