Please refer to Class 12 Business Studies Sample Paper Term 1 With Solutions Set C provided below. The Sample Papers for Class 12 Business Studies have been prepared based on the latest pattern issued by CBSE. Students should practice these guess papers for class 12 Business Studies to gain more practice and get better marks in examinations. The Term 1 Sample Papers for Business Studies Standard 12 will help you to understand the type of questions which can be asked in upcoming examinations.
Term 1 Sample Paper for Class 12 Business Studies With Solutions Set C
1. Policy formulation is the function of –
a. Top level managers
b. Middle level managers
c. Operational management
d. All of the above
Answer
A
2. Which of the following best indicates the importance of business environment:
a. Identification
b. Improvement in performance
c. Coping with rapid changes
d. All of them
Answer
D
3. Which of the following is an example of social environment
a. Money supply in the economy
b. Consumer protection act
c. The constitution of the country
d. Composition of family
Answer
D
4. ______________________ is considered a major element of the political environment:
a. The extent and nature of government intervention in business;
b. planned outlay in public and private sectors;
c. Expectations from the work force;
d. Administrative order issued by government authorities.
Answer
A
5 .Grouping of activities on the basis of product lines is a part of:
a. Delegated organization
b. Divisional organization
c. Functional organization
d. Autonomous organization
Answer
B
6.The highest level need in the Need Hierarchy of Abraham Maslow:
a. Safety need
b. Belongingness need
c. Self- actualization need
d. Prestige need
Answer
C
7. Which of the following does not explain the impact of Government policy changes on business and industry ?
a. Market orientation
b. More demanding customers
c. Increasing competition
d. Change in agricultural prices
Answer
D
8. Management is ……….
a . Science
b. An Art
c. both science and art
d. neither
Answer
C
9. Name the function of management which helps in the formulation of future plans, in the light of the problems that were identified and thus, helps in better planning in the future period.
a. Planning
b. Organizing
c. Directing
d. Controlling
Answer
D
10. At what level of management does the Chief Executive Officer operate?
a. Top level
b. Middle level
c. Lower level
d. None of the above
Answer
A
11. ___________________________is the process by which the manager brings order out of chaos, removes conflict among people over work or responsibility sharing and creates an environment suitable for teamwork.
a. Planning
b. Organizing
c. Staffing
d. Controlling
OR
———————————- ensures that the heads of separate business units in the organization are responsible for profit or loss of their unit and have authority over it.
a. Span of management
b. Divisional Structure
c. Functional structure
d. Hierarchy of Authority.
Answer
B OR B
12. Match the following Marketing Mix Philosophies along with their main focus Point.
a. a4 ,b3 ,c2 ,d1
b. a1 ,b3 ,c2 ,d4
c. a4 ,b2 ,c3 ,d1
d. a1 ,b2 ,c3 ,d4
OR
Product, price, place and promotion are part of……….
a. Product mix
b. Price mix
c. Marketing mix
d. Place mix
Answer
A OR C
13. Financial Market …….financial assets.
a. Creates
b. Exchange
c. Creates and Exchange
d. None of the above
Answer
C
14. Educating the investor is the ………….function of SEBI.
a. Protective
b. Regulatory
b. Both the above
d. Developmental
Answer
A
15. Secondary market deals with the ……..of existing securities.
a Purchase
b. Sale
c. Purchase-Sale
d. Stock
Answer
C
16. Primary Market is associated with ………issues.
a. Old
b. New
c. Old and New
d. Very old
Answer
B
Yamuna Prasad, a small shopkeeper in Bikaner, Rajasthan used to sell the famous‘Bhujia-Sev’. It was a quick selling product for locals and foreign tourists. His second generation expanded the business and got ‘Yamuna Ki Bhujia’ registered with concerned authorities. Gradually the brand offered a wide range of products to its customers like namkeen, sweets, bakery items etc. However, ‘Bhujia-Sev’ remained the most popular product of the brand creating maximum revenue. “Yamuna Ki Bhujia’ offered its products at competitive prices even while offering customer services like gift packaging and free home delivery to become a household name. Now it has virtually become a synonym for bhujia-sev in the market, so much so, that people ask for ‘Yamuna Ki Bhujia’ instead of bhujia-sev. ‘Yamuna Ki Bhujia’ has developed a strong distribution network in India and abroad by setting up retail outlets and reaching out to the customer through internet selling. Promotion of the brand had always been low profile, till the increase in competition pushed it to hire the services of a professional advertising agency, VIGYAPAN PVT.LTD for promoting the product. On the advice of VIGYAPAN PVT.LTD, ‘Yamuna Ki Bhujia’ has also worked upon managing public opinion by developing relations with the masses through sponsoring cultural and sporting events, maintenance of public parks etc.
17. ‘His second generation expanded the business and got ‘Yamuna Ki Bhujia’ registered with concerned authorities.’
With reference to the given text ‘Yamuna ki Bhujia’ is a _______________giving it a legal protection against its use by anyone else.
a. Brand value
b. Trademark
c. Trait mark
d. Brand mark
Answer
B
18. ‘Yamuna Ki Bhujia’ offered its products at competitive prices even while offering customer services like gift packaging and free home delivery to become a household name.
Identify the factor affecting the element of marketing mix being discussed above.
a. Marketing methods used
b. Objectives
c. Extent of competition in the market
d. product cost
Answer
A
19. ‘Yamuna Ki Bhujia’ has developed a strong distribution network in India and abroad by setting up retail outlets and reaching out to the customer through internet selling.Identify the decision related to the element of marketing mix being discussed above.
a. Storing and assorting products in order to create time utility
b. Regarding the channels or using intermediaries
c. Both a & b
d. One regarding branding, packaging and labelling
Answer
B
20. On the advice of VIGYAPAN PVT.LTD, ‘Yamuna Ki Bhujia’ has also worked upon managing public opinion by developing relation with the masses through sponsoring cultural and sporting events, maintenance of public parks etc. Name the department in the organization which is generally responsible for performing the above important task of managing public opinion.
a. Marketing Department
b. A separate department created in the firm for the purpose
c. An outside agency
d. Any of the above.
Answer
D
22. Explain “ Apprenticeship training” and “ Vestibule training”
Answer : Apprenticeship training – Training under the guidance of a master worker or experience guide or trainer. It is suitable for acquiring higher level skill.Eg Plumbers,Electricians
Vestibule training-Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. Actual work environments are created in a class room and employees use the same material, files and equipment.
23. How does controlling help in “Judging accuracy of standards” and “Ensuring order and discipline
OR
“Planning is an empty exercise without controlling “. Explain the statement through an example.
Answer : “Judging accuracy of standards” and “Ensuring order and discipline
OR
“Planning is an empty exercise without controlling “
24. State the Regulatory functions of the SEBI.
OR
State any three money market instruments.
Answer : The Regulatory functions of the SEBI.
OR
Three money market instruments.
26. Explain the following rights of consumer as provided under Consumer Protection Act,
1. Right to be informed ; and
2. Right to seek redressal
Answer : Right to be informed:Seller or manufacturer must give complete information regarding the content or use of product .Is violated when complete information is not given to consumer or wrong information is given to consumer about the product.
Right to seek redressal :Consumer has the right to get compensation for the damage he suffered due to wrong product /service.
a. Exchange of product/service
b. Repairs of product/service
c. Paying compensation
d. Withdrawn of goods from market.
27. Shivansh wants to start a business of selling N-95 masks after the outbreak of the global pandemic of COVID-19 .Due to the uncertain market conditions he wants to make a low investment in fixed capital.Suggest how the decisions related to the choice of technique and financing alternatives can help Shivansh in ensuring a low investment in fixed capital requirements.
Answer : Choice of Technique: As he wishes to stick to a low investment model, we may suggest him to go with the labour-intensive approach to manufacture N-95 masks. Since better technology would cost him much and his risk appetite is not conducive for capital intensive techniques of production.
Financial Alternatives: As he wishes to stick to a low investment model, we may suggest him to go with the lease option for fixed assets like building,heavy machinery etc. as this may reduce his investments requirement in the business..
28. Explain any four factors affecting the dividend decision of a company.
OR
Explain any four factors that affect the choice of capital structure of a company.
Answer : with explanation (Any four)
a) Amount of earnings
b) Stability of earnings
c) Stability of dividend
d) Growth opportunities
e) Cash flow position
f) Shareholders’ preference
OR
with explanation (Any four)
1. Cash Flow Position
2. Interest Coverage Ratio (ICR)
3. Debt Service Coverage Ratio (DSCR)
4. Cost of debt
5. Tax Rate
6. Floatation cost
7. Risk Consideration
29. Alok is view supervisor of Ram , Rahim and Khan.He consults all his subordinates while framing work schedules.They provide suggestions and Alok considers such suggestions if they are productive .Which leadership style is followed by Alok? What would be the benefits of such leadership style to the organization?
Answer : Democratic Leadership style
Any three benefits of Democratic Leadership style
30. Identify and explain the elements of directing mentioned below:
a. Asha ,a manager has the ability to influence others to bring about a change in their behaviour.
b. Neeru, a managing director, declares share in the profits to the manager for their contribution to increase profits of the company.
Answer : (a). Leadership- Leadership is the process of influencing the behaviour of people by making them strive voluntarily towards achievement of
organisational goals. Leadership indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute for achieving organisational objectives.
(b). Motivation- Motivation means incitement or inducement to act or move. In the context of an organization. It means the process of making subordinates to act in a desired manner to achieve certain organizational goals.
31. Karan Nath took over ‘D’north Motor Company’ from his ailing father three months ago. In the past of the company was not performing well. Karan was determined to improve the company’s performance. He observed that the methods of production as well as selection of employees in the company were not scientific.
He believed that there was only one best method to maximize efficiency. He also felt that once the method is developed, the workers of the company should be trained to learn that ‘best method’.
He asked the Production Manager to develop the best method and carry out necessary training. The Production Manager developed this method using several parameters right from deciding the sequence of operations, place for men, machines and raw materials till the delivery of the product to the customers. This method was implemented throughout the organization. It helped in increasing the output, improving the quality and reducing the cost and wastage.
Identify and explain the principles and the technique of scientific management followed by the Production Manager in the above case.
Answer : Principles of management followed in the above case:
(a) Science not rule of thumb
(b) Development of each and every person to his greatest efficiency and prosperity Technique of scientific management followed in the above case :
(a) Method Study
32. “Planning is worth the huge costs involved”? Do you agree?Explain any four reasons in support of your answer.
OR
“If the project is important then more alternatives should be generated and thoroughly discussed amongst the members of the organization”Identify and explain the step in the process of planning being discussed above .Also explain the remaining steps which will have to be carried out to complete the process.
Answer : 1. Planning provides direction: Planning ensures that the goals or objectives are clearly stated so that they act as a guide for deciding what action should be taken and in which direction. If goals are well defined, employees are aware of what the organization has to do and what they must do to achieve those goals.
2. Planning reduces the risks of uncertainty: Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding in advance, the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed.
3. Planning reduces overlapping and wasteful activities: Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Since planning ensures clarity in thought and action, work is carried on smoothly without interruptions. Useless and redundant activities are minimized oreliminated.
4. Planning promotes innovative ideas: Since planning is the first function of management, new ideas can take the shape of concrete plans. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business.
5. Planning facilitates decision making: Planning helps the manager to look into the future and make a choice from amongst various alternative courses of action. The manager has to evaluate each alternative and select the most viable proposition. Planning involves setting targets and predicting future conditions thus helping in taking rational decisions.
6. Planning establishes standards for controlling: Planning provides the goals or standards against which actual performance is measured. By comparing actual performance with some standard, managers can know whether they have actually been able to attain the goals. If there is any deviation it can be corrected. Therefore, we can say that planning is a prerequisite for controlling.
OR
Identifying alternative courses of action: Once objectives are set assumptions are made. Then the next step would be to act upon them. There may be many ways to act and achieve objectives. All the alternative courses of action should be identified. The course of action which may be taken could be either routine or innovative. An innovative course may be adopted by involving more people and sharing their ideas.
1. Evaluating alternative courses: The next step is to weigh pros and cons of each alternative. Each course will have many variables which have to be weighed against each other. The positive and negative aspects of each proposal need to be evaluated in the light of the objective to be achieved.
2. Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with least negative consequences. Most plans may not always be subjected to a mathematical analysis.
3. Implementing the plan: This is the step where other managerial functions also come into the picture. The step is concerned with putting the plan into action.
4. Follow up action: To see whether plans are being implemented and activities are performed according to schedule is also part of the planning process. Monitoring the plans is equally important to ensure that objectives are achieved.
34. Explain the factors which are kept in mind while fixing the price of a product.
OR
Explain different elements or components of marketing mix.
Answer : Factors affecting price of a product :(Any four factors)
1. Product Cost
2. Utility and Demand
3. Extent of competition in the market
4. Government and Legal Regulations
5. Pricing Objectives
6. Marketing Methods used
OR
Elements or components of marketing mix
1. Product
2. Price
3. Place/Physical Distribution
4. Promotion
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