HSE-II

HIGHER SECONDARY MODEL EXAMINATION 2012

BUSINESS STUDIES
TOTAL SCORES: 80 Time : 2½ Hours

1. Find the odd one out :

Rebate Discount Gifts Salesmanship Score:1
2. Dis-investment comes under________________ environment.
Economic Social Technological Legal Score :1
3. BSE-1875, NSE-1994 SEBI- ? Score : 1
4. ............................. focuses mainly on initial public issue of securities.
Bull Stag Bear Lame duck Score :1
5. Scanning the environment and bringing alternative changes is called ...... Score :1

6.

dentify the concept of management and explain in one or two sentences. Scores : 2

7. Planning and Controlling are two sides of a coin. Do you agree? Justify your answer.
Scores : 2

8. Find out the correct pair from the following and justify it.
a) Policy-Time rate system of wage payment
b) Rule-- No Smoking
c) Objective-- Long term plan
d) Methods -- Make a profit of Rs. 2,00,000 Score : 2

9. Explain the following :

a) Capital structure b) Capitalisation c) Stock exchange Score : 3

10. In a class room discussion Tintu argued that only listed securities are permitted to be
 traded in a stock exchange while Appu says that certain unlisted securities are also traded
in a stock exchange.
a) Whose arguement do you support?
b) Justify your answer. Score : 3

11. Identify the management principle and suggest the solution put forward by Henry Fayol

Score : 2

12. Hindusthan Ltd decided to charge a low price for their new products right from the
begining to stimulate the growth of their market.
a) Name the pricing strategy adopted by the company.
b) State any two conditions in which this strategy is successful. Score : 3

13. Explain the three-tier system of consumer protection Score : 3

14. In a classroom debate Arun argued that " Management is a science. " Rahim argues that "
management is an art." As a moderator how will you conclude these arguments?
Score: 4
15. Match the following:
A B C
Legal Environment Numerical in nature Lower level
F W Taylor Promotion Memos
Budget Court Calling laid off employees
Transfer Letters Datawise plan
Written Functional Foremanship Acts and Laws
Score: 5
16. You are given the following information:
Capital invested Rs.- 10,00,000
Normal rate of return- 30%
Profit made during the year 2011- Rs 4,00,000
 a) Analyse the above information and find out whether the capitalisation of the company is
normal or not.
b) If not, explain causes and its effects. Score : 5

17. A good leader should possess some essential qualilties. Can you explain them briefly.
Score : 6
18. In an organisation structure, activities are grouped on the basis of functions. Can you tell
about its features? Draw a diagram showing its structure Score : 6

19. Every firm should strive to secure the best combination of the 4 P's so as to achieve its
objectives. What is the term best suited for this? Explain its elements. Score : 5

20. Gandhi Sports Club has a good football team. For increasing their efficiency, the club
appointed Mr. Thomas, former state player as their coach. He oversees the performance
and gives regular insturctions. Ultimately the performance of the team has reached new
heights. Discuss the role and functions of Mr. Thomas in the above situation.
Score : 5
21. Explain the different levels of management with the help of a diagram. Score :4

22. Mr. Raju wishes to start a new business. But he is ignorant about the various
environmental factors which affect the business. As a Commerce student, list out and
explain the various components of business environment to him.
OR
'Fayol's perspective on the concept of management is much broader than that of F W
Taylor.' Do you agree? Justify your answer Score : 8

23. A major policy decision of a the Finance Manager of a company is whether to distribute
profits to the shareholders or retain the profits and reinvest into business.
a) Name the policy decision of Finance Manager with regard to this aspect.
b) Explain the various factors affecting the policy of the management in the maximisation
of the wealth of the owners.
OR
Explain the various steps involved in staffing process. Score : 8