1st Pre-board (2019-20) Worksheet

Class- XII
SUBJECT – BUSINESS STUDIES

• 3 Marks Questions:

1. Rahul decided to start a desert cooler manufacturing business. He sets the target of earning
20% profit on sales in the first year. He was very much concerned about the future
prospects of the business, which were uncertain. For this, he gathered information from the
potential market and analyzed that the demand for wall mounted coolers is increasing day
by day. He used this information as the base for future planning. On the basis of the
gathered information, he called a meeting in the following week to find new methods to
achieve the objective.
a) Identify the function of management involved in the above case.
b) Enumerate the next two steps, which have been followed by Rahul that are
related to the process of one of the functions of management.

2. “The overall objective of SEBI is to protect the interest of investors and to promote
the development of, and regulate the securities market.” In light of the given
statement, state any three objectives of SEBI.

3. “Delegation is not a process of abdication.” Comment.

4. Progress Ltd. Is facing difficulties in introduction of machinery of latest technology

As they are facing resistance from the informal groups who are pressurizing the members
to work against organizational interests. As the Human Resources manager of the company
would you advise the management of the company to confront them or give them some
other suggestion to deal with the informal groups.

5. State any three financial incentives other than ‘Pay and Allowances’ to motivate
employees.

6. State any three responsibilities that a consumer must keep in mind while purchasing gold
jewelry.

7. State any three functions of motivation.

8. State the main aspects in the concept of planning?

9. “Money market is essentially a market for short-term funds”. In the light of this
statement, state any three features of money market.

10. “Grahak Shakti”, an N.G.O. organized a workshop to discuss various issues relating to
consumers. During the discussion, one of the members drew attention towards
exploitation of consumers due to defective and unsafe products, adulteration, black
 marketing, hoarding etc. To this another member argued that consumers themselves are
responsible as they do not raise collective voice against the exploitation. The Chairperson
of the organization was of the opinion that it was also the duty of the businessman to take
care of the interests of various stakeholders. Business organizations earn money by
selling goods and services to consumers. So the interests of the stakeholders have to be
well taken care of.
(a)State three points that highlight the need for consumer protection as discussed in
“Grahak Shakti’s “workshop.

11. Explain any three factors affecting price of the product.

12. Explain any three points of importance of consumer protection from the point of view of
consumers.

13. Bandhu Limited is a real estate company, which was formed in 1960. In about 55 years of
its existence, the company has managed to carve out a niche for itself in this sector. In
order to establish itself in India, the company decided to list its securities on BSE, in
order to raise money through India market. State the functions performed by SEBI that
make investors comfortable and secured in dealing with Bandhu Ltd.

14. Gopal, Mohan and Shyam are three friends having their separate small manufacturing
units in an industrial estate. They are hard-working and honest and undertake their
respective production activities following the good practices of business. They use
good quality raw materials and adopt standardised process. They fix the prices of
their products with a reasonable profit margin. But all of them are worried
about the malpractices like manufacturing sub-standard, duplicate, and defective
goods by the fellow manufacturers. Therefore, they decided to form an
organisation with a constitution of its own which is free from government
interference. This organisation would encourage consumers to strongly protest and
take action against unscrupulous, exploitative and unfair trade practices of sellers. State
three other functions which may be performed by this organisation in addition to those
mentioned above.

15. Explain : Management as a Science, Art and Profession.

• 4 Marks Questions :

1. Distinguish between ‘delegation’ and ‘decentralization’ on the basis of

(i)Freedom of action; (ii) Status and (iii) Purpose.

2. Aarushi buys a packet of dry cake from a cake shop without asking for the bill. The
pack does not bear any information other than the name of shop. After reaching home
she finds the cake to be stale.
a) Identify the consumer right that has been violated.
b) State any three responsibilities that a consumer must keep in mind while
purchasing any good.
3. State any four characteristics of good brand name.

4. After passing his secondary school examination, David left the school at the age of 15
years and started getting training under his father. His father, a renowned electrician, had
worked for many companies. He everyday started accompanying his father on work and
watched him carefully while working. David was a good learner and learnt the techniques
of work quickly. Now his father started passing on the tricks of the trade to David. With
the passage of time David acquired a high level skill and became a well-known
electrician at Indore. Big business-houses started calling him for electrical-wiring.
(a) Name the method of training discussed in the above para.
(b) State any three benefits which David could get on being trained.

5. Sherya Ltd. is a large credit-worthy company manufacturing automobiles for the

Indian market .It now wants to cater to the other market and decided to invest in new
machines. For this, it requires long-term finance. It decides to raise funds by issuing
equity shares. The issue of equity shares involves huge floatation cost. To meet the
expenses of floatation cost the company decides to tap the money market.
a) Name and discuss 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.

6. State any four characteristics of packaging.

7. At present, apart from the basic pay and allowances as a part of compensation, the
employees and employers contribute 12% of basic wages each towards Employees
Provident Fund scheme and Employees Pension Fund scheme. A proposal to reduce the
contribution by employers and employees to 10% of basic pay and dearness allowance
was listed on the agenda for a recent meeting of Employees Provident Fund Organization
held. The stakeholders expressed their reservations about it and they feel that it should be
continued at 12%. Explain any two needs as suggested by Maslow’s Need Hierarchy
Theory, which will not be satisfied by the incentives discussed above.

8. Having transformed 2500 Kirana stores across eight cities in to virtual super markets, the
start up Quick Bizz further decided in advance, to collaborate with 15000-20,000 store
owners in top 30 cities of the country by the end of this year. The company has set its eye
on digitizing over 1,00,000 kirana stores over next 18-24 months.
(A) Identify and explain the step in the process of one of the functions of management
discussed above.
(B) Also explain the last step to be performed by Quick Bizz as part of the process.

9. Describe any four functions of Financial Market.

10. Resolutions Pvt. Ltd. is a publishing company. Its book on Business Studies for class
XII is in great demand. As a result, the employees in the marketing department
 are always racing against time. The employees have to work overtime and on
holidays to cater to the demand.
Managers in the marketing department are under stress as they have to handle
More than two territories. The work stress has led to dissatisfaction among
the employees and managers.
a) Name and explain the step of staffing process which has not been
performed properly.
b) State the next two stages immediately following the step identified in part(a).

11. Human Resource Management includes many specialized activities and duties which
the human resource personnel must perform. In the light of this statement, explain any
four such duties performed by Human Resource Manager.

12. Enumerate any two techniques of scientific management.

• 5 Marks Questions:

1. State any five functions performed by the manager who is working at the middle level
management.

2. GETO Ltd. is a company that produces school bags. Now it wants to produce water
bottles also. For such diversification it needs additional capital of Rs. 50 crores, So
company decided to float capital by way of equity shares issue to general public as it is
boom period in market. But company’s cash position is not favourable. In order to
arrange working capital, company want to use some money market instruments. It will
help in meeting floatation costs.
(i) Identify the method of floatation of capital as mentioned in the above paragraph.
(ii) Besides above share issue method, mention two other methods
(iii) Which money market instruments will be appropriate? Clarify.

3. Naman and Govind after finishing their graduation under vocational stream decided to
start their own travel agency which will book Rail Tickets and Air Tickets on commission
basis. They also thought of providing tickets within ten minutes through the use of
internet. They discussed the idea with their Professor Mr. Mehta who liked the idea and
suggested them to first analyse the business environment which consists of investors,
competitors and other forces like social, political etc. that may affect their business
directly or indirectly. He further told them about the technological improvements and
shifts in consumer preferences that were taking place and hence they should be aware of
the environmental trends and changes which may hinder their business performance. He
emphasised on making plans keeping in mind the threat posed by the competitors, so that
they can deal with the situation effectively. This alignment of business operations with
the business environment will result in better performance.
(i) Identify and state the component of business environment highlighted in the
above Para.
(ii) State any two features of business environment as discussed by Professor Mehta
with Naman and Govind.
 (iii) Also state two points of importance of business environment as stated by
Professor Mehta in the above situation.

4. Suhasini a home science graduate from a reputed college has recently done a cookery
course. She wished to start her own venture with a goal to provide ‘health food’ at
reasonable price. She discussed her idea with her teacher (mentor) who encouraged her.
After analyzing various options for starting her business venture, they shortlisted the
option to sell readymade and ‘ready to make’ vegetable shakes and sattu milk shakes.
Then, they both weighed the pros and cons of both the shortlisted options.
a) Name the function of management being discussed above and give any one of
Its characteristics.
b) Also briefly discuss any three limitations of the function discussed in the case.

5. State any five characteristics of Coordination.

6. “The responsibility of a firm should be divided among various levels such as top level,
middle level, and lower level”. Identify the concept of management function and state
its importance.

7. Shan Spices Ltd.‟ are the manufacturer of different food specific spices like Rajmaa
Masala, Cholley Masala, AalooParantha Masala etc. Mr. Raghav, the owner of the
company has created different departments for purchase, production, marketing, finance
and human resource. There are thirty employees working in the organisation. Planning is
of paramount importance to the company as Mr. Raghav believes that effective planning
leads to achievement of organisational objectives. So in order to make employees focus
on objectives, he issued instructions that during working hours only official matters will
be discussed. He made certain rules and code of conduct for the employees to follow,
according to which employees are not allowed to visit and talk to the employees of other
departments except for official work. He emphasised on work performance which resulted
in smooth functioning of the organisation.
1) Identify and state the type of organisation mentioned in the above para.
2) State one feature of the concept identified in part (1) as mentioned in the above para.
3) What was the purpose behind the formulation of rules for the employees that
restricted their personal communication with the employees of other departments?
4) State two values violated by Mr. Raghav.

8. Describe briefly “Maslow’s need hierarchy theory” of motivation?

9. “Every time I travelled, people asked me to bring them chips, khakra and pickles from all
over the country,” says Anoushka. Finally, she and her colleague, Sumeet, decided to
make a business out of it. They launched a facebook page, asked people what they wanted,
and they came up with a list of about 100 places and tied up with two dozen vendors to
begin with. They were servicing people from Jaipur who wanted spices from Kerala,
people from Panipat who wanted halwa from Jammu and people from Delhi who ordered
for fresh tea leaves from Darjeeling. Through their business they wished to bridge the gap
between sellers and buyers. The business is now worth millions. Explain any two
 important activities that Anoushka and Sumeet will have to be involved in for making the
goods available to the customers at the right place, in the right quantity and at the right
time.

10. A truck manufacturing company has its registered office in Delhi, manufacturing unit at
Gurgaon and marketing department is located at Faridabad. The company manufactures
different type of trucks. Which type of organisational structure should it adopt? Give
reason. State any three advantages of this organisation structure. [Hint: - ‘Functional
structure’].

• 6 Marks Questions :

1. Distinguish between Formal organization and Informal organization.

2. A public transport corporation has hired 2000 buses for the different routes for the
passengers of metropolitan city. In order to fill vacancies, it advertised in the
newspaper and number of applicants applied for the same. The company has to now
undertake the process of selection to identify and select the best. Explain the first six
steps involved in the process.

3. Flavours Ltd. was engaged in the business of making handmade chocolates. Lately,
the business was expanding due to good quality and reasonable prices. As the demand
was increasing, Flavours Ltd. decided to explore bakery products as well. In order to
make bakery products the company directed its workforce to work overtime but this
resulted in multiple problems.Due to increased pressure the efficiency declined and
the workers had to take orders from more than one superior. Workers were
overburdened and their health was also affected. Gradually the quality of the products
begins to decline and market share also went down. The company realized that
they had implemented changes without waiting for the required infrastructure.
Identify and explain the principles/technique of Taylor/Fayol referred to in the above
para.

4. Differentiate between Functional structure and Divisional structure.

5. What is the meaning of directing? Explain the importance of direction as a function of

management.

6. “A good understanding of environment by business managers enables them not only to

identity and evaluate but also to react to the forces external to their firm.”
In the light of the above statement explain any four points of importance of understanding
business environment by a manager.

7. Aman a degree holder in Entrepreneurship came to know about Piplantri Village located
in Rajasthan, where in 2006 an initiative was started, in which 111 trees are planted every
time a girl child is born. To keep termites away from the trees the villagers have planted
2.5 million Aloe Vera plants around the trees. This has turned the village into an oasis, as
 the planting of trees led to higher water levels. Aman decided to visit the village to start a
business unit, for the processing and marketing of Aloe Vera into juices, gels and other
products.
However, on visiting the village Aman found that the villagers were suffering exploitation
at the hands of local merchants who were engaged in unscrupulous, exploitative trade
practices like hoarding and black marketing of food productsand also selling unsafe,
adulterated products to the villagers. After looking at their plight instead of a business
organisation he decided to set up an organisation for the protection and promotion of the
consumer interest of the villagers.
State the functions that the organisation established by Aman will be performing. (Any
six points)

8. Royal Ltd. decided that whenever a person reaches a particular age he will be promoted.
Influenced by this plan of the company several employees of from other companies also
joined the firm. But within few days they realized that the firm has pre-determined relation
structure without free communication.
On the basis of this, answer the following questions.
(i) Identify the type of plan.
(ii) Identify the type of organization described here.
(iii) Point out any 3 limitations of this type of organization.

9. Explain non-financial incentives.

--------------------------------------- ----------------------------------- -------------------------------