Class 12 Business Studies Sample Paper Term 1 with Solutions Set B

Please refer to Class 12 Business Studies Sample Paper Term 1 With Solutions Set B 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 B

Question. Akash has recently started a business to sell computers. He hired a shop in Palika Bazaar chandigarh, where he assembles various components to make computers and supplies them as per order. He performs a series of composite but separate functions simultaneously and ensures that computers are delivered in time as per orders. These functions are performed by all managers at all times. The feature of management highlighted above is :
(a) Management is a continuous process.
(b) Management is pervasive.
(c) Management is dynamic.
(d) Management is a group activity. 

Question. Which of the following is a component of economic environment?
(a) Concern with quality of life
(b) Rates of saving and investment
(c) Extent of government intervention in business
(d) Birth and death rates  

Question. Which statement is not correct, with respect to ‘Organization Structure’?
(a) Ensures coordination among human and physical resources.
(b) Ensures smooth flow of communication.
(c) Specifies relationship between people, work and resources.
(d) Establishes standards for controlling

Question. Facebook, Whatsapp and Twitter is the result of :
(a) Political environment
(b) Social environment
(c) Technological environment
(d) Legal environment

Question. A network of social relationships that arises spontaneously due to interaction at work is:
(a) Formal organization
(b) Delegation
(c) Decentralization
(d) Informal organization

Question. Under controlling function, deviations can be analyzed by:
(a) Setting performance standards
(b) Measuring actual performance
(c) Critical point control
(d) Taking corrective actions.

Question. ‘Sumptuous’ is a food joint in Imperial Mall in Mumbai. It is becoming popular among students and working 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 Mumbai.
Which financial decision has been discussed in the above case?
(a) Long-term investment decision
(b) Short-term investment decision
(c) Dividend decision
(d) Financing decision

Question. The process of classification of products into different groups on the basis of their important characteristics refers to which of the following marketing functions?
(a) Grading
(b) Standardization
(c) Product designing
(d) Marketing planning

Question. Primary and secondary markets:
(a) Compete with each other
(b) Complement with each other
(c) Both function independently
(d) Control each other.

Question. Out of the instruments given below, which does not relate to money market:
(a) Call money
(b) Treasury bill
(c) IPO’S
(d) Commercial bill

Question. Amayra purchased a pack of biscuits. When she opened it, she felt the biscuits were stale. She carefully read the label on the pack of biscuits which mentioned :
‘‘If you are not satisfied with the product quality, write to our Customer Care Cell at Honey Foods Pvt. Ltd. B/389, Mohali’’
The biscuit company has set up its own consumer service and grievance cell to promote and protect the following right :
(a) Right to Safety
(b) Right to be Heard
(c) Right to be Informed
(d) Right to Consumer Education

Question. Management by Exception refers to :
(a) Significant deviation which goes beyond the permissible limit should be brought to the notice of the management.
(b) Focuses on the key result areas.
(c) Comparison of actual performance with the standard.
(d) Measurement of Company’s and its employees’ performance.

Question. The singing style of Shreya Goshal and Neha Kakkar are different to each other, however they acquired same knowledge of ragas. Identify the feature of art discussed above.
(a) Based on practice and creativity
(b) Universal validity
(c) Existence of theoretical knowledge
(d) Personalized application

Question. Giving freedom to Indian business and industries from all unnecessary government controls and restrictions is an example of_______:
(a) Privatization
(b) Liberalization
(c) Globalization
(d) Demonetization

Question. An analysis that reveal the number and type of employees available with the organization
(a) internal source
(b) workforce analysis
(c) Interview
(d) workload analysis

Question. While the product _____________ sets the lower limit of the price, the utility provided by the product sets the upper limit of price, which a buyer would be prepared to pay. 

Question. Which function of management is used for preparing plans for future in the light of the problems identified and thereby helping in future period?

Question. For delegation to be effective, it is necessary that authority granted must be commensurate with assigned __________. 

Question. Co-ordination acts as a …………………… force between various departments to ensure unity of action. 

Question. State, giving reason, whether the following statement is true or false :
‘‘Advertising refers to short term incentives which are designed to encourage the buyers to make immediate purchase of a product.’’  

Question. Each employee of ‘Rudvika Ltd.’ should manufacture 10 tables per day as per the terms of employment. All the employees met the said target except a few who manufactured between 4 – 6 tables per day. The management took a decision to install Closed Circuit Television (CCTV’s) in the factory for monitoring the activities of the employees.
(a) Identify the managerial function discussed above.
(b) Explain any two steps in the process of the function identified in (a) Above
Answer : Controlling function of management. 
One mark each for correct identification of two steps of controlling.
Steps involved are:
1. comparison of actual with standards
2. analyzing deviations
3. taking corrective action.

Question. X Ltd. was facing the problem of gradual decrease in production. The General manager found that the only remedy is to appoint Plant Superintendent. Mr. Ashish was appointed to overcome this problem. Mr. Ashish wants to gather the information regarding the working of machines, performance appraisal report of all the employees working in the production department, quality of raw material used in production process.
a) Identify the level at which Mr. Ashish is working in the company?
b) State any two more functions to be performed by Mr. Ashish.
Answer : Middle level of management functions performed by middle level managers.

Question. A company manufactures very sophisticated switch gears used in automatic cars. For this the company uses hi-tech machines. Most of the times the workers of the factory remain idle because of lack of knowledge regarding the use of these hi-tech machines. The frequent visits by the engineers and constant supervision of the foreman results into high overhead charges.
a) Explain the way by which this problem can be overcome.
Also state any two points highlighting how this helps the employees.
Answer : Training is the process of increasing the abilities, skills and knowledge of employees to do the present job in an effective manner.

Question. Stock index measures the movement of prices of securities at a stock exchange. Stock index reflects the day-to-day fluctuations in stock prices and are known as barometers of market behaviour of securities.
In the light of this statement, state any three functions of stock exchange.
OR
To promote orderly and healthy growth of securities market and protection of investors, Securities and Exchange Board of India was set up.
In the light of the given statement, state any three regulatory functions of the Securities and Exchange Board of India
Answer : function of a stock exchange regulatory functions of SEBI.

Question. Ayesha Ltd. Assured their employees that in spite of recession no worker will be retrenched from the job.
(i) Name and explain the type of incentive offered to the employees.
(ii) Explain two more incentive of the same category
Answer : Job security a non- financial incentive . 

Question. ‘MICO Automobiles Ltd.’ is engaged in manufacturing of auto parts for car manufacturing companies. The company enjoys good creditworthiness. It now wants to expand its business by investing in new plant and machinery. For this it requires long terms finance. Arsh, the Finance Manager of the company advised the CEO of the company to raise funds by issuing equity shares. It requires huge floatation cost. To meet the expenses of floatation cost the company decided to tap the money market.
(a) Name the money market instrument the company can use for meeting the floatation cost.
(b) Differentiate between ‘money market’ and ‘capital market’ on any three basis.
Answer : Commercial paper difference between money market and capital market.

Question. The Managing Director of ‘Verma Chemicals Pvt. Ltd.’ held a meeting of all the departmental managers. In the meeting, the managing director said that besides doing their current work efficiently, they also had to make themselves capable of shouldering more responsibility in future as the company is going to add an additional product to its existing product line. For the realisation of this objective he invited suggestions from all departmental heads. The Managing Director proposed a plan on the basis of the suggestions received. All the departmental heads carried out the plan.
(a) Name the function of management that is involved in the above case?
(b) Identify and give the meaning of the style of leadership referred in the above para.
(b) Explain the other two styles of leadership.
Answer : Directing function of management. 
Democratic style of leadership. One for correct identification and one for explanation.

Question. Namita purchased a food processing machine for Rs. 3,000 from ‘Roscha
Machinery Pvt. Ltd.’ She found that the machine was not working properly. Despite many complaints, the defect was not rectified by Roscha Machinery Pvt. Ltd.
(a) Identify the consumer right that has been violated by Roscha Machinery Pvt. Ltd.
(b) Suggest the appropriate forum where Namita can file her complaint.
(c) Can she appeal to the Supreme Court if she is not satisfied with the order of the appropriate forum? Also justify your answer by giving appropriate reason..
Answer : a) Right to be heard
b) District Forum 
c) No, she cannot file an appeal in Supreme court as the case originally was filed in district forum.

Question. Hinduja International Ltd. earned a net profit of Rs 20 crores. Ritesh the finance manager of Hinduja International Ltd. wants to decide how to appropriate these profits. Identify the decision that Ritesh will have to take and also discuss any three factors which help him in taking this decision.
Answer : Recruitment and selection

Question. Name and explain the function of management which is known as thinking function? Explain any four characteristics of the function identified in (a).
Answer : Planning function. One for correct identification and one for explanation. 

Question. A Steel Manufacturing Company has the following main jobs:
1. Manufacturing, (ii) Finance, (iii) Marketing, (iv) Personal and (v) Research and development.
1. Which type of organizational structure will you choose for this type of a company and why?
2. State any five advantages that this structure offers to an organization.
OR
Explain the steps in the process of organizing function of management.
Answer : Functional organization One mark each for every correct heading and explanation of the advantages of functional structure.

Question. It is necessary that goods and services must be made available to the customers at right place in the right quantity and at right time.
(a) Name and explain the concerned element of Marketing Mix given above.
(b) Explain the components of this element.
Answer : Physical distribution or place mix each for every correct element of physical distribution.

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