Sample Second Pre-Board Examination 2016 -17

Business Studies
M.M.80 Class XII Time:3 Hr.

General Instructions:-
(1) Answer to one marks questions may be from one word to one sentence.
(2) Answer to three marks question may be from 50 to 70 words.
(3) Answer to four marks question may be about 100 words.
(4) Answer to five marks questions may be about 150 words.
(5) Answer to six marks question may be about 200 words.
(6) Attempt all parts of a question together.

Q1: Define planning 1

Q2: ‘India Logistics’ has its own warehousing arrangements of key locations across the country.
Its warehousing services help business firms to reduce their overheads, increase efficiency
and cut down distribution time.
State with reason, whether the working capital requirements of ‘Indian Logistics’ will be high or
low. 1

Q3: Explain how ‘Cost of debt’ affects the choice of capital structure of a company. 1

Q4: Alliance Ltd. is engaged in manufacturing plastic buckets. The objective of the company is
to manufacture 100 buckets a day. To achieve this, the efforts of all departments are
coordinated and interlinked and authority responsibility relationship is established among
various job positions. There is clarity on who is to report to whom.
Name the function of management discussed above. 1

Q5: What is meant by ‘Management discussed above. 1

Q6: Your mother purchased a colour television for 70,000 without cash-memo from an
authorized dealer of the manufacturer with a guarantee that the television will be replaced with
new one if any of its parts becomes defective within three months from the date of purchase.
Within 10 days a part of the television was burnt and on complaining the seller refused to
replace the television. Name the redressal agency under the consumer protection Act where
your mother can file the complaint. 1

Q7:’Beauty product Ltd.’ is a natural and ethical beauty brand famous for offering organic
beauty products and is the No.1 beauty brand in the country. It not only satisfies its customers
but also believes in overall protection of the planet.
Identify the marketing management philosophy being followed by ‘Beauty Products Ltd.’. 1

Q8: “A manager applies the various theories of management in his unique personalized way “.
What aspect of nature of management does this statement indicate? 1

Q9: Pramod was a supervisor at ‘Annapurna Aata’ factory. The factory was producing 200
quintals of aata every day. His job was to make sure that the work goes on smoothly and there
was no interruption in production. He was a good leader who would give orders only after
consulting his subordinates and word out the policies with the acceptance of the group.
Identify and describe the leadership style being adopted by Pramod. 3

Q10: Explain how the ‘Product-related factors’ affect the choice of channels of distribution. 3

Q11: Neeraj, a sales representative of ‘ONIDA LTD.’ has changed seven jobs in the last one year
he is a hard working person but is not able to finalise deals with the customer due to
inadequate vocabulary and omission of needed words. Sometimes he uses wrong words
because of which intended meaning is not conveyed. All this created a miss-understanding
between him and his clients:- 3
(a) Identify the communication barrier discussed above.
(b) State the category of this communication barrier.
(c) Explain any other communication barrier of the same category.

Q12: ‘Financial planning is a financial blueprint of and organisation’s future operations. Explain
the importance (any 3 points) of financial planning in the light of this statement. 3

Q13: State any three disadvantages of ‘Functional structure of an organisation’. 3

Q14: A company manufacturing consumer goods has grown in size. It was a market leader but
with changes in economic environment and with the entry of MNC its market share is declining.
The company was following a centralized business model as even the minor decisions were in
the hands of top level. Before 1991 this model was suitable for company but now the company
is under pressure to reform.
What changes should the company bring about in order to retain its market share?
Give its three points of importance. 4

Q15: The workers of ‘Vyam Ltd.’ are unable to work as new and hi-tech machines imported by
the company to fulfill the increased demand. Therefore, the workers are seeking extra guidance
From the supervisor. The supervisor is overburden with the frequent calls of workers. Suggest
how the supervisor by increasing the skills and knowledge of the workers, can make them
handle their work independently?
Also state any three benefits that the workers will derive by the decision of the supervisor. 4

Q16: Principles of Taylor and Fayol are mutually complementary. One believed that
management should not close its ears to constructive suggestions made by the employees
while the other suggested that a good company should have an employee suggestion system,
whereby suggestions which result in substantial time or cost reduction should be rewarded.
Identify and explain the principles of Taylor and Fayol referred in the above para. 4

Q17: ‘Ganesh Steel Ltd.’ is a large and credit worthy company manufacturing steel for the
Indian market. It now wants to cater to the Asian Market and decides to invest in new hi-tech
machines. Since the investment is large, it requires long term finance. It decides to tap the
money market:-
(a) Name and explain the money market instrument the company can use for the above
purpose.
(b) What is the duration for which the company can get funds through this instrument?
(c) State any other purpose for which this instrument can be used. 4

Q18: Explain “Differential piece wage system” as a technique of scientific management. 4

Q19: Besides a ‘consumer, name the parties who can file a complaint before the appropriate
consumer forum. 4

Q20: Sunita had been working as an assistant manager with ‘Johnson Enterprises for the last
ten year. She was very popular amongst her colleagues because of her commitment and
dedication towards the work. When the manager senior to her retired, all he colleagues
thought that now sunita would be promoted. But to everyone’s surprise the vacant post was
filled by an outsider. Mrs. Rita, Smita felt demoralized and her performance stared declining.
She would abstain herself often and could not meet her targets.
Mrs. Rita was a good leader, who would not only instruct her subordinate but would also guide
and inspire them. She noticed Sunita’s behavior and felt that her performance could be
improved. She started involving sunita in decision making issues related to the organization and
made her a part of high level Joint-management Committee. Sunita was now punctual in office
and her performance started improving. 5
(a) Identify the function of management being performed by Rita.
(b) Name the element of the above function of management which helped Rita to improve
Sunita’s behavior
(c) State any three features of the element identified in (II) above.

Q21: Explain the various steps involved in the controlling process. 5

Q22: Nishant the director of a garments company, is planning to manufacture bags for the
utilization of waste material from one of its garments units. He has decided that this
manufacturing unit will be set up in a rural area of Orissa where people have Few Job
Opportunities and labour is available at very low rates. He has also thought of giving equal
opportunities of men and women. For this he wants four different heads for sales, Accounts,
Purchase and production. He gives and advertisement and shortlists ten candidates per post
after conducting different selection tests. 5
(a) Identify and state the next three steps for choosing the best candidate out of the candidates
short listed.
(b) Also identify two values which Nishant wants to communicate to the society by setting up
this manufacturing unit.

Q23: ‘Hayaram’ is a famous chain selling a large variety of product in the Indian market. Their
products include chips, biscuits, sweets and squashes. It charges a comparatively higher price
than its competitions as it sells quality products. Besides, it offer regular discounts to its
retailers. It has five of its own retail shops. It also sell its products through various grocery
stores. So the products are made available to customer at the right place, in the right quantity
and at the right time. It regularly uses different communication tools to increase its sales.
The above para describes the combination of variables used by Hayaram to prepare its market
offering.
Identify and explain the variables. 6

Q24: Shubh Ltd. is manufacturing steel at its plant in India. It is enjoying a buoyant demand for
its products as economic growth is about 7%-8% and the demand for steel is growing. The
company has decided to setup a net steel-plant to cash on the increased demand. It is
estimated that it will require about 2000 crore to setup and about 500 crore of working
capital to start the new plant :- 6
(a) State the objectives of financial management for this company.
(b) Identify and state the decision taken by the finance manager in the above case.
(c) State any two factors affecting the fixed capital requirements of Shubh Ltd.

Q25: Explain the following Principles of Management given by Fayol:- 6

(a) Unity of direction (b)Equity
(c) Espirit de corps