Page 1
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
CBSE
Class XII Business Studies
All India Board Paper Set 3 – 2018
Time: 3 hrs. Max. Marks: 80
General Instructions:
(i) Answers to questions carrying 1 mark may be from one word to one sentence.
(ii) Answers to questions carrying 3 marks may be from 50-75 words.
(iii) Answers to questions carrying 4-5 marks may be about 150 words.
(iv) Answers to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a question together.
Question 1
In the paint industry, various raw materials are mixed in different proportions with petroleum
for manufacturing different kinds of paints. One specific raw material is not readily and
regularly available to the paint manufacturing companies. Bonler Paints Company is also facing
this problem and because of this there is a time lag between placing the order and the actual
receipt of the material. But once it receives the raw materials, it takes less time in converting it
into finished goods.
Identify the factor affecting the working capital requirements of this industry. [1]
Question 2
Saurabh decided to start a chocolates manufacturing business. He set then target of earning
10% profit on sales in the first year. As a good businessman, he was concerned about the future
of the business, which was uncertain. He gathered information that the demand for chocolates
is increasing day-by-day. He used this information as the base for future planning and shared it
with his team. On the basis of the gathered information, he scheduled a meeting in the
following week to find innovative ways to achieve the objectives.
List the first two steps, which have been followed by Saurabh that are related to the process of
one of the functions of management. [1]
Question 3
Give the meaning of ‘Method’ as a type of plan. [1]
Question 4
Define ‘Decentralisation’. [1]
Question 5
‘Buy one get one free’ is printed on the label of the package of a mosquito repellant.
State the labelling function being performed by this statement. [1]
Page 2
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
CBSE
Class XII Business Studies
All India Board Paper Set 3 – 2018
Time: 3 hrs. Max. Marks: 80
General Instructions:
(i) Answers to questions carrying 1 mark may be from one word to one sentence.
(ii) Answers to questions carrying 3 marks may be from 50-75 words.
(iii) Answers to questions carrying 4-5 marks may be about 150 words.
(iv) Answers to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a question together.
Question 1
In the paint industry, various raw materials are mixed in different proportions with petroleum
for manufacturing different kinds of paints. One specific raw material is not readily and
regularly available to the paint manufacturing companies. Bonler Paints Company is also facing
this problem and because of this there is a time lag between placing the order and the actual
receipt of the material. But once it receives the raw materials, it takes less time in converting it
into finished goods.
Identify the factor affecting the working capital requirements of this industry. [1]
Question 2
Saurabh decided to start a chocolates manufacturing business. He set then target of earning
10% profit on sales in the first year. As a good businessman, he was concerned about the future
of the business, which was uncertain. He gathered information that the demand for chocolates
is increasing day-by-day. He used this information as the base for future planning and shared it
with his team. On the basis of the gathered information, he scheduled a meeting in the
following week to find innovative ways to achieve the objectives.
List the first two steps, which have been followed by Saurabh that are related to the process of
one of the functions of management. [1]
Question 3
Give the meaning of ‘Method’ as a type of plan. [1]
Question 4
Define ‘Decentralisation’. [1]
Question 5
‘Buy one get one free’ is printed on the label of the package of a mosquito repellant.
State the labelling function being performed by this statement. [1]
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
Question 6
Give the constitution of the District Consumer Disputes Redressal Forum under the Consumer
Protection Act, 1986. [1]
Question 7
Why is the understanding of ‘Marketing Management Philosophies’ important? [1]
Question 8
An investor wanted to incest `20,000 in Treasury Bills for a period of 91days. When he
approached the Reserve Bank of India for this purpose he came to know that it was not
possible.
Identify the reason why the investor could not invest in the Treasury Bill. [1]
Question 9
Explain briefly any two points of importance of consumer protection from the point of view of
business. [3]
Question 10
The Return on Investment (ROI) of a company ranges between 10-12% for the past three
years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’ : Rate of interest 9%
Option ‘B’ : Rate of interest 13%
Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reasons in support of your
answer. Also state the concept being used in taking the decision. [3]
Question 11
State the steps in the selection procedure, after the employment interview and before the job
offer. [3]
Question 12
Sandhya is a successful manager at Manisons Enterprises. She has a team of twelve people
working under her. She encourages them to set their own objectives and take decisions. She
respects their opinions and supports them, so that they can perform their duties and
accomplish organisational objectives. To manage and exercise effective control she uses forces
within the group.
As an intelligent manager, at times, she also makes use of positive aspects of informal
communication. This way, she is able to unify diverse interests and ensure that targets are met.
(a) There are many theories and styles of influencing people's behaviour. Identify the style
used by Sandhya which is based on the use of authority.
(b) State two positive aspects of the communication discussed above, which Sandhya is using
as an intelligent manager. [3]
Page 3
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
CBSE
Class XII Business Studies
All India Board Paper Set 3 – 2018
Time: 3 hrs. Max. Marks: 80
General Instructions:
(i) Answers to questions carrying 1 mark may be from one word to one sentence.
(ii) Answers to questions carrying 3 marks may be from 50-75 words.
(iii) Answers to questions carrying 4-5 marks may be about 150 words.
(iv) Answers to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a question together.
Question 1
In the paint industry, various raw materials are mixed in different proportions with petroleum
for manufacturing different kinds of paints. One specific raw material is not readily and
regularly available to the paint manufacturing companies. Bonler Paints Company is also facing
this problem and because of this there is a time lag between placing the order and the actual
receipt of the material. But once it receives the raw materials, it takes less time in converting it
into finished goods.
Identify the factor affecting the working capital requirements of this industry. [1]
Question 2
Saurabh decided to start a chocolates manufacturing business. He set then target of earning
10% profit on sales in the first year. As a good businessman, he was concerned about the future
of the business, which was uncertain. He gathered information that the demand for chocolates
is increasing day-by-day. He used this information as the base for future planning and shared it
with his team. On the basis of the gathered information, he scheduled a meeting in the
following week to find innovative ways to achieve the objectives.
List the first two steps, which have been followed by Saurabh that are related to the process of
one of the functions of management. [1]
Question 3
Give the meaning of ‘Method’ as a type of plan. [1]
Question 4
Define ‘Decentralisation’. [1]
Question 5
‘Buy one get one free’ is printed on the label of the package of a mosquito repellant.
State the labelling function being performed by this statement. [1]
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
Question 6
Give the constitution of the District Consumer Disputes Redressal Forum under the Consumer
Protection Act, 1986. [1]
Question 7
Why is the understanding of ‘Marketing Management Philosophies’ important? [1]
Question 8
An investor wanted to incest `20,000 in Treasury Bills for a period of 91days. When he
approached the Reserve Bank of India for this purpose he came to know that it was not
possible.
Identify the reason why the investor could not invest in the Treasury Bill. [1]
Question 9
Explain briefly any two points of importance of consumer protection from the point of view of
business. [3]
Question 10
The Return on Investment (ROI) of a company ranges between 10-12% for the past three
years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’ : Rate of interest 9%
Option ‘B’ : Rate of interest 13%
Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reasons in support of your
answer. Also state the concept being used in taking the decision. [3]
Question 11
State the steps in the selection procedure, after the employment interview and before the job
offer. [3]
Question 12
Sandhya is a successful manager at Manisons Enterprises. She has a team of twelve people
working under her. She encourages them to set their own objectives and take decisions. She
respects their opinions and supports them, so that they can perform their duties and
accomplish organisational objectives. To manage and exercise effective control she uses forces
within the group.
As an intelligent manager, at times, she also makes use of positive aspects of informal
communication. This way, she is able to unify diverse interests and ensure that targets are met.
(a) There are many theories and styles of influencing people's behaviour. Identify the style
used by Sandhya which is based on the use of authority.
(b) State two positive aspects of the communication discussed above, which Sandhya is using
as an intelligent manager. [3]
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
Question 13
Differentiate between formal and informal organisations on the basis of (i) origin, (ii)
authority, and (iii) flow of communication. [3]
Question 14
Explain any four points of importance of the controlling function of management. [4]
Question 15
Ram Murthy, the CEO of ‘Goodcare Hospitals’, a leading chain of hospitals, decided to reward
the good work of the doctors of his organisation. For this he instituted two running trophies. A
‘Healthcare Achievers Trophy’ to acknowledge and appreciate the tireless efforts of the doctors
who rendered selfless services to the patients and another ‘Beti Bachao Trophy’ to recognise
the outstanding work done by the doctors in saving the girl child.
The CEO also wanted to improve the health services in rural areas all over the country. He
decided that all doctors must work in rural areas for at least six months. He also decided that
the paramedical staff should be employed locally.
(a) Identify the incentive provided by ‘Goodcare Hospitals’ to its doctors through running
trophies.
(b) Which need of the doctors will be satisfied through the incentive identified in part (a)?
State.
(c) State any two values that the CEO of ‘Goodcare Hospitals’ is trying to communicate to the
society. [4]
Question 16
Sumit purchased an ISI marked washing machine of a famous brand ‘MG’ from TG Electronics
Ltd. The shopkeeper asked him to wait for two days for installation of the machine. His friend,
Vivek, was very fond of experimenting with new electronic products. He told Sumit that there
is no need to wait for the company’s representative to install the machine and that he could do
it. So, both of them installed the machine without following the manufacturer’s instructions.
Initially, the machine worked effectively and the wash was good. But after two days, the
machine stared stopping in between the wash cycle. Sumit and Vivek tried their best to start
the machine but failed in their efforts. Sumit, therefore, approached TG Electronics Ltd., which
refused to provide any service on the plea that the installation of the machine was not done by
the company.
(a) State the responsibility which Sumit had to fulfil as an aware consumer to get the services
of the company.
(b) Explain briefly any two rights which Sumit could have exercised had he fulfilled his
responsibility identified in part (a). [4]
Question 17
State the protective functions of Securities and Exchange Board of India. [4]
Page 4
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
CBSE
Class XII Business Studies
All India Board Paper Set 3 – 2018
Time: 3 hrs. Max. Marks: 80
General Instructions:
(i) Answers to questions carrying 1 mark may be from one word to one sentence.
(ii) Answers to questions carrying 3 marks may be from 50-75 words.
(iii) Answers to questions carrying 4-5 marks may be about 150 words.
(iv) Answers to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a question together.
Question 1
In the paint industry, various raw materials are mixed in different proportions with petroleum
for manufacturing different kinds of paints. One specific raw material is not readily and
regularly available to the paint manufacturing companies. Bonler Paints Company is also facing
this problem and because of this there is a time lag between placing the order and the actual
receipt of the material. But once it receives the raw materials, it takes less time in converting it
into finished goods.
Identify the factor affecting the working capital requirements of this industry. [1]
Question 2
Saurabh decided to start a chocolates manufacturing business. He set then target of earning
10% profit on sales in the first year. As a good businessman, he was concerned about the future
of the business, which was uncertain. He gathered information that the demand for chocolates
is increasing day-by-day. He used this information as the base for future planning and shared it
with his team. On the basis of the gathered information, he scheduled a meeting in the
following week to find innovative ways to achieve the objectives.
List the first two steps, which have been followed by Saurabh that are related to the process of
one of the functions of management. [1]
Question 3
Give the meaning of ‘Method’ as a type of plan. [1]
Question 4
Define ‘Decentralisation’. [1]
Question 5
‘Buy one get one free’ is printed on the label of the package of a mosquito repellant.
State the labelling function being performed by this statement. [1]
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
Question 6
Give the constitution of the District Consumer Disputes Redressal Forum under the Consumer
Protection Act, 1986. [1]
Question 7
Why is the understanding of ‘Marketing Management Philosophies’ important? [1]
Question 8
An investor wanted to incest `20,000 in Treasury Bills for a period of 91days. When he
approached the Reserve Bank of India for this purpose he came to know that it was not
possible.
Identify the reason why the investor could not invest in the Treasury Bill. [1]
Question 9
Explain briefly any two points of importance of consumer protection from the point of view of
business. [3]
Question 10
The Return on Investment (ROI) of a company ranges between 10-12% for the past three
years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’ : Rate of interest 9%
Option ‘B’ : Rate of interest 13%
Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reasons in support of your
answer. Also state the concept being used in taking the decision. [3]
Question 11
State the steps in the selection procedure, after the employment interview and before the job
offer. [3]
Question 12
Sandhya is a successful manager at Manisons Enterprises. She has a team of twelve people
working under her. She encourages them to set their own objectives and take decisions. She
respects their opinions and supports them, so that they can perform their duties and
accomplish organisational objectives. To manage and exercise effective control she uses forces
within the group.
As an intelligent manager, at times, she also makes use of positive aspects of informal
communication. This way, she is able to unify diverse interests and ensure that targets are met.
(a) There are many theories and styles of influencing people's behaviour. Identify the style
used by Sandhya which is based on the use of authority.
(b) State two positive aspects of the communication discussed above, which Sandhya is using
as an intelligent manager. [3]
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
Question 13
Differentiate between formal and informal organisations on the basis of (i) origin, (ii)
authority, and (iii) flow of communication. [3]
Question 14
Explain any four points of importance of the controlling function of management. [4]
Question 15
Ram Murthy, the CEO of ‘Goodcare Hospitals’, a leading chain of hospitals, decided to reward
the good work of the doctors of his organisation. For this he instituted two running trophies. A
‘Healthcare Achievers Trophy’ to acknowledge and appreciate the tireless efforts of the doctors
who rendered selfless services to the patients and another ‘Beti Bachao Trophy’ to recognise
the outstanding work done by the doctors in saving the girl child.
The CEO also wanted to improve the health services in rural areas all over the country. He
decided that all doctors must work in rural areas for at least six months. He also decided that
the paramedical staff should be employed locally.
(a) Identify the incentive provided by ‘Goodcare Hospitals’ to its doctors through running
trophies.
(b) Which need of the doctors will be satisfied through the incentive identified in part (a)?
State.
(c) State any two values that the CEO of ‘Goodcare Hospitals’ is trying to communicate to the
society. [4]
Question 16
Sumit purchased an ISI marked washing machine of a famous brand ‘MG’ from TG Electronics
Ltd. The shopkeeper asked him to wait for two days for installation of the machine. His friend,
Vivek, was very fond of experimenting with new electronic products. He told Sumit that there
is no need to wait for the company’s representative to install the machine and that he could do
it. So, both of them installed the machine without following the manufacturer’s instructions.
Initially, the machine worked effectively and the wash was good. But after two days, the
machine stared stopping in between the wash cycle. Sumit and Vivek tried their best to start
the machine but failed in their efforts. Sumit, therefore, approached TG Electronics Ltd., which
refused to provide any service on the plea that the installation of the machine was not done by
the company.
(a) State the responsibility which Sumit had to fulfil as an aware consumer to get the services
of the company.
(b) Explain briefly any two rights which Sumit could have exercised had he fulfilled his
responsibility identified in part (a). [4]
Question 17
State the protective functions of Securities and Exchange Board of India. [4]
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
Question 18
Aradhana and Gandharv are heads of two different departments in 'Yumco Ltd.' 'They are
efficient managers and are able to motivate the employee of their respective departments to
improve performance. However, their drive to excel in their own sphere of activity instead of
giving emphasis on objectives of the enterprise has hindered the interaction between the
departments that Aradhana and Gandharv are heading. Often there are inter-departmental
conflicts and they have become incompatible. This has proved to be harmful in the fulfilment of
the organisational objectives. The situation has deteriorated to such an extent that the CEO of
'Yumco Ltd.' has hired a consultant, Rashmi, to resolve the problem. After studying the
situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow
perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is
a result of the type of organisational structure 'Yumco Ltd.’ has adopted.
From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and
state any three advantages of the structure so identified. [4]
Question 19
In 2015, Naveen left his luxurious life in Mumbai, where he worked as a manager for Blue Birds
Ltd. He shifted to Begampur, Chhattisgarh to fulfil his grandmother's dream of converting their
25-acre ancestral land into a fertile farm. For this he set out specific goals along with the
activities to be performed to achieve the goals.
Every activity was a challenge since he was clueless about farming. He learnt every activity
from filling the land to sowing the seeds. To aid farmers he launched his own company
'Innovative Agriculture Solutions Pvt. Ltd.’
It was difficult initially as no one trusted an urban youth telling farmers about farming. But
when everything was discussed in detail the farmers started taking interest. He wanted to
ensure that the future events meet effectively the best interests of the company. Through sales
forecasting, he prepared an annual plan for production and sales.
He also found that the farmers grew only paddy, which was an activity of 3 - 4 months and land
remained idle for the rest 8-9 months of the year. He not only identified but evaluated various
alternatives through which the farms could be utilised for the remaining months of the year.
Through correct foresight and logical and systematic thinking based on analysis of all facts, all
alternative were examined and evaluated. He promoted a plan to the farmers, where after
harvesting paddy, vegetables could be grown.
The above case highlights the features of one of the functions of management. By quoting lines
from the above identify and explain these features. [4]
Question 20
After acquiring the necessary knowledge and skills on starting an Aloevera Farm. Ashok
wanted to be the leading manufacturer of Aloevera products worldwide. He observed that the
products were expensive as the demand of the products was more than supply. He was also
keen to promote methods and practices that were economically visible, environmentally sound
and at the same time protecting public health.
Ashok's main consideration was about the amount of money paid by the consumers in
Page 5
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
CBSE
Class XII Business Studies
All India Board Paper Set 3 – 2018
Time: 3 hrs. Max. Marks: 80
General Instructions:
(i) Answers to questions carrying 1 mark may be from one word to one sentence.
(ii) Answers to questions carrying 3 marks may be from 50-75 words.
(iii) Answers to questions carrying 4-5 marks may be about 150 words.
(iv) Answers to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a question together.
Question 1
In the paint industry, various raw materials are mixed in different proportions with petroleum
for manufacturing different kinds of paints. One specific raw material is not readily and
regularly available to the paint manufacturing companies. Bonler Paints Company is also facing
this problem and because of this there is a time lag between placing the order and the actual
receipt of the material. But once it receives the raw materials, it takes less time in converting it
into finished goods.
Identify the factor affecting the working capital requirements of this industry. [1]
Question 2
Saurabh decided to start a chocolates manufacturing business. He set then target of earning
10% profit on sales in the first year. As a good businessman, he was concerned about the future
of the business, which was uncertain. He gathered information that the demand for chocolates
is increasing day-by-day. He used this information as the base for future planning and shared it
with his team. On the basis of the gathered information, he scheduled a meeting in the
following week to find innovative ways to achieve the objectives.
List the first two steps, which have been followed by Saurabh that are related to the process of
one of the functions of management. [1]
Question 3
Give the meaning of ‘Method’ as a type of plan. [1]
Question 4
Define ‘Decentralisation’. [1]
Question 5
‘Buy one get one free’ is printed on the label of the package of a mosquito repellant.
State the labelling function being performed by this statement. [1]
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
Question 6
Give the constitution of the District Consumer Disputes Redressal Forum under the Consumer
Protection Act, 1986. [1]
Question 7
Why is the understanding of ‘Marketing Management Philosophies’ important? [1]
Question 8
An investor wanted to incest `20,000 in Treasury Bills for a period of 91days. When he
approached the Reserve Bank of India for this purpose he came to know that it was not
possible.
Identify the reason why the investor could not invest in the Treasury Bill. [1]
Question 9
Explain briefly any two points of importance of consumer protection from the point of view of
business. [3]
Question 10
The Return on Investment (ROI) of a company ranges between 10-12% for the past three
years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’ : Rate of interest 9%
Option ‘B’ : Rate of interest 13%
Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reasons in support of your
answer. Also state the concept being used in taking the decision. [3]
Question 11
State the steps in the selection procedure, after the employment interview and before the job
offer. [3]
Question 12
Sandhya is a successful manager at Manisons Enterprises. She has a team of twelve people
working under her. She encourages them to set their own objectives and take decisions. She
respects their opinions and supports them, so that they can perform their duties and
accomplish organisational objectives. To manage and exercise effective control she uses forces
within the group.
As an intelligent manager, at times, she also makes use of positive aspects of informal
communication. This way, she is able to unify diverse interests and ensure that targets are met.
(a) There are many theories and styles of influencing people's behaviour. Identify the style
used by Sandhya which is based on the use of authority.
(b) State two positive aspects of the communication discussed above, which Sandhya is using
as an intelligent manager. [3]
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
Question 13
Differentiate between formal and informal organisations on the basis of (i) origin, (ii)
authority, and (iii) flow of communication. [3]
Question 14
Explain any four points of importance of the controlling function of management. [4]
Question 15
Ram Murthy, the CEO of ‘Goodcare Hospitals’, a leading chain of hospitals, decided to reward
the good work of the doctors of his organisation. For this he instituted two running trophies. A
‘Healthcare Achievers Trophy’ to acknowledge and appreciate the tireless efforts of the doctors
who rendered selfless services to the patients and another ‘Beti Bachao Trophy’ to recognise
the outstanding work done by the doctors in saving the girl child.
The CEO also wanted to improve the health services in rural areas all over the country. He
decided that all doctors must work in rural areas for at least six months. He also decided that
the paramedical staff should be employed locally.
(a) Identify the incentive provided by ‘Goodcare Hospitals’ to its doctors through running
trophies.
(b) Which need of the doctors will be satisfied through the incentive identified in part (a)?
State.
(c) State any two values that the CEO of ‘Goodcare Hospitals’ is trying to communicate to the
society. [4]
Question 16
Sumit purchased an ISI marked washing machine of a famous brand ‘MG’ from TG Electronics
Ltd. The shopkeeper asked him to wait for two days for installation of the machine. His friend,
Vivek, was very fond of experimenting with new electronic products. He told Sumit that there
is no need to wait for the company’s representative to install the machine and that he could do
it. So, both of them installed the machine without following the manufacturer’s instructions.
Initially, the machine worked effectively and the wash was good. But after two days, the
machine stared stopping in between the wash cycle. Sumit and Vivek tried their best to start
the machine but failed in their efforts. Sumit, therefore, approached TG Electronics Ltd., which
refused to provide any service on the plea that the installation of the machine was not done by
the company.
(a) State the responsibility which Sumit had to fulfil as an aware consumer to get the services
of the company.
(b) Explain briefly any two rights which Sumit could have exercised had he fulfilled his
responsibility identified in part (a). [4]
Question 17
State the protective functions of Securities and Exchange Board of India. [4]
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
Question 18
Aradhana and Gandharv are heads of two different departments in 'Yumco Ltd.' 'They are
efficient managers and are able to motivate the employee of their respective departments to
improve performance. However, their drive to excel in their own sphere of activity instead of
giving emphasis on objectives of the enterprise has hindered the interaction between the
departments that Aradhana and Gandharv are heading. Often there are inter-departmental
conflicts and they have become incompatible. This has proved to be harmful in the fulfilment of
the organisational objectives. The situation has deteriorated to such an extent that the CEO of
'Yumco Ltd.' has hired a consultant, Rashmi, to resolve the problem. After studying the
situation closely, Rashmi found that the problem has arisen due to inflexibility and a narrow
perspective on the part of both Aradhana and Gandharv. She is of the view that this situation is
a result of the type of organisational structure 'Yumco Ltd.’ has adopted.
From the above information, identify the organisational structure adopted by ‘Yumco Ltd.’ and
state any three advantages of the structure so identified. [4]
Question 19
In 2015, Naveen left his luxurious life in Mumbai, where he worked as a manager for Blue Birds
Ltd. He shifted to Begampur, Chhattisgarh to fulfil his grandmother's dream of converting their
25-acre ancestral land into a fertile farm. For this he set out specific goals along with the
activities to be performed to achieve the goals.
Every activity was a challenge since he was clueless about farming. He learnt every activity
from filling the land to sowing the seeds. To aid farmers he launched his own company
'Innovative Agriculture Solutions Pvt. Ltd.’
It was difficult initially as no one trusted an urban youth telling farmers about farming. But
when everything was discussed in detail the farmers started taking interest. He wanted to
ensure that the future events meet effectively the best interests of the company. Through sales
forecasting, he prepared an annual plan for production and sales.
He also found that the farmers grew only paddy, which was an activity of 3 - 4 months and land
remained idle for the rest 8-9 months of the year. He not only identified but evaluated various
alternatives through which the farms could be utilised for the remaining months of the year.
Through correct foresight and logical and systematic thinking based on analysis of all facts, all
alternative were examined and evaluated. He promoted a plan to the farmers, where after
harvesting paddy, vegetables could be grown.
The above case highlights the features of one of the functions of management. By quoting lines
from the above identify and explain these features. [4]
Question 20
After acquiring the necessary knowledge and skills on starting an Aloevera Farm. Ashok
wanted to be the leading manufacturer of Aloevera products worldwide. He observed that the
products were expensive as the demand of the products was more than supply. He was also
keen to promote methods and practices that were economically visible, environmentally sound
and at the same time protecting public health.
Ashok's main consideration was about the amount of money paid by the consumers in
CBSE XII | BUSINESS STUDIES
All India Board Paper Set 3 – 2018
consideration of the purchase of Aloevera products. He also thought that competitors prices
and their anticipated reactions must also be considered for this.
After gathering and analysing information and doing correct marketing planning, he came to
know that the consumers compare the value of a product to the value of money which they are
required to pay. The consumers will be ready to buy a product when they perceived that the
value of the product is at least equal to the value of money which they would pay.
Since he was entering into a new market, he felt that he may not be able to cover all costs. He
knew that in the long run the business will not be able to survive unless all costs are covered in
addition to a minimum profit.
He examined the quality and features of the products of the competitors and the anticipated
reactions of the consumers. Considering the same he decided to add some unique features to
the packaging and also decided to provide free home delivery of the products.
The above case relates to a concept which is considered to be an effective competitive
marketing weapon. In conditions of perfect competition most of the firms compete with each
other on this concept in the marketing of goods and services.
(a) Identify the concept.
(b) Explain briefly any four factors discussed in the above case related to the concept so
identified. [5]
Question 21
What is meant by co-ordination? State its any four features. [5]
Question 22
‘Konark Ltd.’ Is an electronic goods manufacturing enterprise situated in Shivpuri, Madhya
Pradesh. It is earning a very low revenue in comparison to a competing electronic goods
manufacturing enterprise, ‘Nova Ltd.’ situated in Mumbai. Both Konark’s and Nova’s
operations are affected directly by the investors, customers, competitors and suppliers, which
are unique to their respective locations. In addition to this, individual firms of this field are
affected indirectly by the factors like the money supply in the economy, composition of the
families, the technological changes etc.
(a) Identify and state the feature of the concept discussed in the above paragraph.
(b) Also, state any four points of importance of this concept. [5]
Question 23
‘Moga Industries Ltd,’ approached a well established university in the city of Madurai to recruit
qualified personnel for various technical and professional jobs. They selected Tanya, Ritu,
Garima and Chetan for various Vacancies in the organisation.
After the selection and placement, 'Moga Industries Ltd,’ felt the need to increase the skills and
abilities, and the development of positive attitude of the employees to perform their specific
jobs better. The company also realised that learning new skills would improve the job
performance of the employees. Hence, the company decided to take action for the same.
a. Name the step of the staffing process regarding which the company decided to take action.
b. State the benefits of the action to ‘Moga Industries Ltd.' [6]
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