CBSE Business Studies Past year paper Delhi (Set - 3) - 2016, Class 12 | Additional Study Material for Commerce PDF Download

 Page 1


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2016 
 
Time: 3 hrs Max. Marks: 80 
 
Note:  
? Please check that this question paper contains 12 printed pages. 
? Code number given on the right hand side of the question paper should be written on the 
title page of the answer-book by the candidate.  
? Please check that this question paper contains 25 questions. 
? Please write down the Serial Number of the question before attempting it. 
? 15 minutes time has been allotted to read this question paper. The question paper will be 
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the students will read the 
question paper only and will not write any answer on the answer-book during this 
period. 
  
General Instructions: 
(i) All questions in both the sections are compulsory.  
(ii) Marks for questions are indicated against each question. 
(iii) Questions Nos. 1 – 8 are very short-answer questions carrying 1 mark each. They are 
required to be answered in one sentence each. 
(iv) Questions Nos. 9 – 13 are short answer questions carrying 3 marks each. Answers to 
them should normally not exceed 50 – 75 words each. 
(v) Questions Nos. 14 – 19 are also short answer questions carrying 4 marks each. 
Answers to them should normally not exceed 150 words each. 
(vi) Question Nos. 20 – 22 are long-answer questions carrying 5 marks each. Answers to 
them should normally not exceed 150 words each.  
(vii) Question Nos. 23 – 25 are long-answer questions carrying 6 marks each. Answers to 
them should normally not exceed 200 words each.  
(viii)  Answers should be brief and to the point and the above word limits should be 
adhered to as far as possible. 
 
 
1. Name the marketing function which is concerned with informing the customers about 
the firm's products. [1] 
 
2. Radhika and Vani who are young fashion designers left their job with a famous fashion 
designer chain to set-up a company 'Fashionate Pvt. Ltd.' They decided to run a 
boutique during the day and coaching classes for entrance examination of National 
Institute of Fashion Designing in the evening. For the coaching centre they hired the 
first floor of a nearby building. Their major expense was money spent on photocopying 
of notes for their students. They thought of buying a photocopier knowing fully that 
Page 2


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2016 
 
Time: 3 hrs Max. Marks: 80 
 
Note:  
? Please check that this question paper contains 12 printed pages. 
? Code number given on the right hand side of the question paper should be written on the 
title page of the answer-book by the candidate.  
? Please check that this question paper contains 25 questions. 
? Please write down the Serial Number of the question before attempting it. 
? 15 minutes time has been allotted to read this question paper. The question paper will be 
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the students will read the 
question paper only and will not write any answer on the answer-book during this 
period. 
  
General Instructions: 
(i) All questions in both the sections are compulsory.  
(ii) Marks for questions are indicated against each question. 
(iii) Questions Nos. 1 – 8 are very short-answer questions carrying 1 mark each. They are 
required to be answered in one sentence each. 
(iv) Questions Nos. 9 – 13 are short answer questions carrying 3 marks each. Answers to 
them should normally not exceed 50 – 75 words each. 
(v) Questions Nos. 14 – 19 are also short answer questions carrying 4 marks each. 
Answers to them should normally not exceed 150 words each. 
(vi) Question Nos. 20 – 22 are long-answer questions carrying 5 marks each. Answers to 
them should normally not exceed 150 words each.  
(vii) Question Nos. 23 – 25 are long-answer questions carrying 6 marks each. Answers to 
them should normally not exceed 200 words each.  
(viii)  Answers should be brief and to the point and the above word limits should be 
adhered to as far as possible. 
 
 
1. Name the marketing function which is concerned with informing the customers about 
the firm's products. [1] 
 
2. Radhika and Vani who are young fashion designers left their job with a famous fashion 
designer chain to set-up a company 'Fashionate Pvt. Ltd.' They decided to run a 
boutique during the day and coaching classes for entrance examination of National 
Institute of Fashion Designing in the evening. For the coaching centre they hired the 
first floor of a nearby building. Their major expense was money spent on photocopying 
of notes for their students. They thought of buying a photocopier knowing fully that 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
their scale of operations was not sufficient to make full use of the photocopier.  
In the basement of the building of 'Fashionate Pvt. Ltd.' Praveen and Ramesh were 
carrying on a printing and stationery business in the name on 'Neo Prints Pvt. Ltd.' 
Radhika approached Praveen with the proposal to buy a photocopier jointly which 
could be used by both of them without making separate investment. Praveen agreed to 
this.  
Identify the factor affecting fixed capital requirements of 'Fashionate Pvt. Ltd.' [1] 
 
3. The size of assets, the profitability and competitiveness are affected by one of the 
financial decisions. Name and state the decision. [1] 
 
4. 'Management is the process of getting things done.' State the meaning of the term 
'process' used in this statement. [1] 
 
5. Manuj bought a packet of chips from a local shopkeeper and found that the ingredients 
given on the label were not legible. He complained about it to the company. The 
company sent a written apology stating that they will make sure that existing packets 
are withdrawn from the market and new packets with legible labels are soon made 
available. 
State the consumer right which Manuj exercised. [1] 
 
6. Name the type of 'organisational structure' which promotes efficiency in utilisation of 
manpower. [1] 
7. Give the meaning of 'accountability' as an element of delegation. [1] 
8. State the role of 'inspector' in 'functional foremanship.' [1] 
9. Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the Human 
Resource Manager of 'Senor Enterprises Ltd.' decided to leave the company. 
The Chief Executive Officer of the company called Jyoti the Human Resource Manager 
and requested her to fill up the vacancies before leaving the organisation. Informing 
that her subordinate Miss Alka Pandit was very competent and trustworthy, Jyoti 
suggested that if she could be moved up in the hierarchy, she would do the needful. The 
Chief Executive Officer agreed for the same. Miss Alka Pandit contacted 'Keith 
Recruiters' who advertised for the post of marketing head for 'Senor Enterprises Ltd., 
They were able to recruit a suitable candidate for the company. Raman's vacancy was 
filled up by screening the database of unsolicited applications lying in the office.  
a. Name the internal/external sources of recruitment used by 'Senor Enterprises 
Ltd.' to fill up the above state vacancies.  
b. Also state any one merit of each of the above identified source of recruitment. [3] 
 
10. Mr. Sanjay Nehra was the Chairman of 'Taran Bank.' The bank was earning good profits. 
Shareholders were happy as the bank was paying regular dividends. The market price 
Page 3


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2016 
 
Time: 3 hrs Max. Marks: 80 
 
Note:  
? Please check that this question paper contains 12 printed pages. 
? Code number given on the right hand side of the question paper should be written on the 
title page of the answer-book by the candidate.  
? Please check that this question paper contains 25 questions. 
? Please write down the Serial Number of the question before attempting it. 
? 15 minutes time has been allotted to read this question paper. The question paper will be 
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the students will read the 
question paper only and will not write any answer on the answer-book during this 
period. 
  
General Instructions: 
(i) All questions in both the sections are compulsory.  
(ii) Marks for questions are indicated against each question. 
(iii) Questions Nos. 1 – 8 are very short-answer questions carrying 1 mark each. They are 
required to be answered in one sentence each. 
(iv) Questions Nos. 9 – 13 are short answer questions carrying 3 marks each. Answers to 
them should normally not exceed 50 – 75 words each. 
(v) Questions Nos. 14 – 19 are also short answer questions carrying 4 marks each. 
Answers to them should normally not exceed 150 words each. 
(vi) Question Nos. 20 – 22 are long-answer questions carrying 5 marks each. Answers to 
them should normally not exceed 150 words each.  
(vii) Question Nos. 23 – 25 are long-answer questions carrying 6 marks each. Answers to 
them should normally not exceed 200 words each.  
(viii)  Answers should be brief and to the point and the above word limits should be 
adhered to as far as possible. 
 
 
1. Name the marketing function which is concerned with informing the customers about 
the firm's products. [1] 
 
2. Radhika and Vani who are young fashion designers left their job with a famous fashion 
designer chain to set-up a company 'Fashionate Pvt. Ltd.' They decided to run a 
boutique during the day and coaching classes for entrance examination of National 
Institute of Fashion Designing in the evening. For the coaching centre they hired the 
first floor of a nearby building. Their major expense was money spent on photocopying 
of notes for their students. They thought of buying a photocopier knowing fully that 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
their scale of operations was not sufficient to make full use of the photocopier.  
In the basement of the building of 'Fashionate Pvt. Ltd.' Praveen and Ramesh were 
carrying on a printing and stationery business in the name on 'Neo Prints Pvt. Ltd.' 
Radhika approached Praveen with the proposal to buy a photocopier jointly which 
could be used by both of them without making separate investment. Praveen agreed to 
this.  
Identify the factor affecting fixed capital requirements of 'Fashionate Pvt. Ltd.' [1] 
 
3. The size of assets, the profitability and competitiveness are affected by one of the 
financial decisions. Name and state the decision. [1] 
 
4. 'Management is the process of getting things done.' State the meaning of the term 
'process' used in this statement. [1] 
 
5. Manuj bought a packet of chips from a local shopkeeper and found that the ingredients 
given on the label were not legible. He complained about it to the company. The 
company sent a written apology stating that they will make sure that existing packets 
are withdrawn from the market and new packets with legible labels are soon made 
available. 
State the consumer right which Manuj exercised. [1] 
 
6. Name the type of 'organisational structure' which promotes efficiency in utilisation of 
manpower. [1] 
7. Give the meaning of 'accountability' as an element of delegation. [1] 
8. State the role of 'inspector' in 'functional foremanship.' [1] 
9. Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the Human 
Resource Manager of 'Senor Enterprises Ltd.' decided to leave the company. 
The Chief Executive Officer of the company called Jyoti the Human Resource Manager 
and requested her to fill up the vacancies before leaving the organisation. Informing 
that her subordinate Miss Alka Pandit was very competent and trustworthy, Jyoti 
suggested that if she could be moved up in the hierarchy, she would do the needful. The 
Chief Executive Officer agreed for the same. Miss Alka Pandit contacted 'Keith 
Recruiters' who advertised for the post of marketing head for 'Senor Enterprises Ltd., 
They were able to recruit a suitable candidate for the company. Raman's vacancy was 
filled up by screening the database of unsolicited applications lying in the office.  
a. Name the internal/external sources of recruitment used by 'Senor Enterprises 
Ltd.' to fill up the above state vacancies.  
b. Also state any one merit of each of the above identified source of recruitment. [3] 
 
10. Mr. Sanjay Nehra was the Chairman of 'Taran Bank.' The bank was earning good profits. 
Shareholders were happy as the bank was paying regular dividends. The market price 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
of their shares was also steadily rising. The bank was about to announce taking over of 
'Vena Bank.'  
Mr. Sanjay Nehra knew that the share price of 'Taran Bank' would rise on this 
announcement. Being a part of the bank, he was not allowed to buy shares of the bank. 
He called one of his rich friends Sudhir and asked him to invest Rs 5 crores in shares of 
his bank promising him the capital gains.  
As expected the share prices went up by 40% and the market price of Suhir's shares 
was now Rs 7 crores. He earned a profit of Rs 2 crores. He gave Rs 1 crore to Mr. Sanjay 
Nehra and kept Rs 1 crore with himself. On regular inspection and by conducting 
enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was 
able to detect this irregularity. The SEBI imposed a heavy penalty on Mr. Sanjay Nehra. 
By quoting the lines from the above para identify and state any two functions that were 
performed by SEBI in the above case.  [3]  
 
11. State any three functions performed by non-governmental organisations for consumer 
protection.  [3] 
 
12. Mr. Shubhendu Bose is the owner of 'Bikmac Enterprises' carrying on the business of 
manufacturing various kinds of biscuits. There was a lot of discontentment in the 
organisation and the targets were not being met. He asked his son. Naval, who had 
recently completed his MBA, to find out the reason. Naval found that all decision 
making of the enterprise were in the hands of his father. His father didn't believe in his 
employees. As a result both the employer and the employees were not able to 
understand each other’s message in the same sense. Thus, the employees were not 
happy and targets were not met.          
a. Identify any two communication barriers because of which Bikmac Enterprises 
was not able to achieve its target. 
b. State one more barrier each of the types identified in (a) above. [3] 
 
13. Explain any three points of importance of planning. [3] 
 
14. 'Alfa Ltd.' was dealing in renewable energy. To get the business, the team leader and his 
team used to travel to different states to give presentation to their clients. As per the 
policy of the company, the leader used to travel by air, whereas his team travelled by 
road/train. It was not only time consuming but also at time forced female team 
members to travel alone.  
As a result, the subordinates were not acting in a desired manner to achieve 
organisational goals. The CEO came to know about it. He called the team leader, 
discussed the matter with him and decided to change the travel policy of the company. 
It was decided that all the members including the leader would travel together in future 
and would usefully utilise the travelling time in discussion with the subordinates about 
presentation to be given to the clients. This made a positive impact and every member 
of the team started acting in a manner as desired by the team leader.  
Page 4


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2016 
 
Time: 3 hrs Max. Marks: 80 
 
Note:  
? Please check that this question paper contains 12 printed pages. 
? Code number given on the right hand side of the question paper should be written on the 
title page of the answer-book by the candidate.  
? Please check that this question paper contains 25 questions. 
? Please write down the Serial Number of the question before attempting it. 
? 15 minutes time has been allotted to read this question paper. The question paper will be 
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the students will read the 
question paper only and will not write any answer on the answer-book during this 
period. 
  
General Instructions: 
(i) All questions in both the sections are compulsory.  
(ii) Marks for questions are indicated against each question. 
(iii) Questions Nos. 1 – 8 are very short-answer questions carrying 1 mark each. They are 
required to be answered in one sentence each. 
(iv) Questions Nos. 9 – 13 are short answer questions carrying 3 marks each. Answers to 
them should normally not exceed 50 – 75 words each. 
(v) Questions Nos. 14 – 19 are also short answer questions carrying 4 marks each. 
Answers to them should normally not exceed 150 words each. 
(vi) Question Nos. 20 – 22 are long-answer questions carrying 5 marks each. Answers to 
them should normally not exceed 150 words each.  
(vii) Question Nos. 23 – 25 are long-answer questions carrying 6 marks each. Answers to 
them should normally not exceed 200 words each.  
(viii)  Answers should be brief and to the point and the above word limits should be 
adhered to as far as possible. 
 
 
1. Name the marketing function which is concerned with informing the customers about 
the firm's products. [1] 
 
2. Radhika and Vani who are young fashion designers left their job with a famous fashion 
designer chain to set-up a company 'Fashionate Pvt. Ltd.' They decided to run a 
boutique during the day and coaching classes for entrance examination of National 
Institute of Fashion Designing in the evening. For the coaching centre they hired the 
first floor of a nearby building. Their major expense was money spent on photocopying 
of notes for their students. They thought of buying a photocopier knowing fully that 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
their scale of operations was not sufficient to make full use of the photocopier.  
In the basement of the building of 'Fashionate Pvt. Ltd.' Praveen and Ramesh were 
carrying on a printing and stationery business in the name on 'Neo Prints Pvt. Ltd.' 
Radhika approached Praveen with the proposal to buy a photocopier jointly which 
could be used by both of them without making separate investment. Praveen agreed to 
this.  
Identify the factor affecting fixed capital requirements of 'Fashionate Pvt. Ltd.' [1] 
 
3. The size of assets, the profitability and competitiveness are affected by one of the 
financial decisions. Name and state the decision. [1] 
 
4. 'Management is the process of getting things done.' State the meaning of the term 
'process' used in this statement. [1] 
 
5. Manuj bought a packet of chips from a local shopkeeper and found that the ingredients 
given on the label were not legible. He complained about it to the company. The 
company sent a written apology stating that they will make sure that existing packets 
are withdrawn from the market and new packets with legible labels are soon made 
available. 
State the consumer right which Manuj exercised. [1] 
 
6. Name the type of 'organisational structure' which promotes efficiency in utilisation of 
manpower. [1] 
7. Give the meaning of 'accountability' as an element of delegation. [1] 
8. State the role of 'inspector' in 'functional foremanship.' [1] 
9. Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the Human 
Resource Manager of 'Senor Enterprises Ltd.' decided to leave the company. 
The Chief Executive Officer of the company called Jyoti the Human Resource Manager 
and requested her to fill up the vacancies before leaving the organisation. Informing 
that her subordinate Miss Alka Pandit was very competent and trustworthy, Jyoti 
suggested that if she could be moved up in the hierarchy, she would do the needful. The 
Chief Executive Officer agreed for the same. Miss Alka Pandit contacted 'Keith 
Recruiters' who advertised for the post of marketing head for 'Senor Enterprises Ltd., 
They were able to recruit a suitable candidate for the company. Raman's vacancy was 
filled up by screening the database of unsolicited applications lying in the office.  
a. Name the internal/external sources of recruitment used by 'Senor Enterprises 
Ltd.' to fill up the above state vacancies.  
b. Also state any one merit of each of the above identified source of recruitment. [3] 
 
10. Mr. Sanjay Nehra was the Chairman of 'Taran Bank.' The bank was earning good profits. 
Shareholders were happy as the bank was paying regular dividends. The market price 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
of their shares was also steadily rising. The bank was about to announce taking over of 
'Vena Bank.'  
Mr. Sanjay Nehra knew that the share price of 'Taran Bank' would rise on this 
announcement. Being a part of the bank, he was not allowed to buy shares of the bank. 
He called one of his rich friends Sudhir and asked him to invest Rs 5 crores in shares of 
his bank promising him the capital gains.  
As expected the share prices went up by 40% and the market price of Suhir's shares 
was now Rs 7 crores. He earned a profit of Rs 2 crores. He gave Rs 1 crore to Mr. Sanjay 
Nehra and kept Rs 1 crore with himself. On regular inspection and by conducting 
enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was 
able to detect this irregularity. The SEBI imposed a heavy penalty on Mr. Sanjay Nehra. 
By quoting the lines from the above para identify and state any two functions that were 
performed by SEBI in the above case.  [3]  
 
11. State any three functions performed by non-governmental organisations for consumer 
protection.  [3] 
 
12. Mr. Shubhendu Bose is the owner of 'Bikmac Enterprises' carrying on the business of 
manufacturing various kinds of biscuits. There was a lot of discontentment in the 
organisation and the targets were not being met. He asked his son. Naval, who had 
recently completed his MBA, to find out the reason. Naval found that all decision 
making of the enterprise were in the hands of his father. His father didn't believe in his 
employees. As a result both the employer and the employees were not able to 
understand each other’s message in the same sense. Thus, the employees were not 
happy and targets were not met.          
a. Identify any two communication barriers because of which Bikmac Enterprises 
was not able to achieve its target. 
b. State one more barrier each of the types identified in (a) above. [3] 
 
13. Explain any three points of importance of planning. [3] 
 
14. 'Alfa Ltd.' was dealing in renewable energy. To get the business, the team leader and his 
team used to travel to different states to give presentation to their clients. As per the 
policy of the company, the leader used to travel by air, whereas his team travelled by 
road/train. It was not only time consuming but also at time forced female team 
members to travel alone.  
As a result, the subordinates were not acting in a desired manner to achieve 
organisational goals. The CEO came to know about it. He called the team leader, 
discussed the matter with him and decided to change the travel policy of the company. 
It was decided that all the members including the leader would travel together in future 
and would usefully utilise the travelling time in discussion with the subordinates about 
presentation to be given to the clients. This made a positive impact and every member 
of the team started acting in a manner as desired by the team leader.  
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
State the features of the element of the function of management used by the CEO. [4] 
 
15. A company was marketing 'water purifiers' which were very popular due to their 
quality and after sales services provided to the customers. The company was a leading 
company in the market and earning huge profit. Because of huge profits the company 
ignored the after sales services. As a result its relations with the customers got spoiled 
and the image of the company was damaged in the public. Top Management become 
concerned when the profits for the current quarter fell steeply. 
On analysis it was revealed that ignoring the after sales services was its reason. 
Therefore the company took all possible measures to protect and promote its 
favourable image in the eyes of the public. As a result the goodwill of the company 
improved in the society.  
a. Name and state the communication tool used by the marketer in the above case 
to improve its image. 
b. Also explain role of the tool as identified in part (a). [4] 
 
16. A recent rate cut in the interest on loans announced by the Banks encouraged Amit, a 
science student of Progressive School to take a loan from State Bank of India to 
experiment and develop cars to be powered by fuel produced from garbage. He 
developed such a car and exhibited it in the Science Fair organised by Directorate of 
Education. He was awarded first prize for his invention.  
Identify and explain the dimensions of business environment discussed in the above 
case.  [4] 
 
17. 'Steelo Ltd.' decided to set-up its steel manufacturing factory in the backward area of 
Orissa where very less job opportunities were available. People of that area welcomed 
this effort of 'Steelo Ltd.' To attract people to work in its factory it also decided to 
provide many other facilities like school. Hospital, market etc. in the factory premises. 
'Steelo Ltd.' started earning huge profits. Another competing company asked its 
production manager 'Aslam' to investigate the reasons of earning huge profits by 
'Steelo Ltd.' 
Aslam found that in both the companies there was systematic coordination among the 
various activities to achieve organisational goals. Every employee knew who was 
responsible and accountable to whom. The only difference was that in his organisation 
communication took place only through the scalar chain whereas 'Steelo Ltd.' was 
allowing flow of communication in all the directions as per the requirement which lead 
to faster spread of information as well as quick feedback.  
a. Identify the type of organisation which permits 'Steelo Ltd.' the flow of 
communication in all the directions. 
b. State another advantage of the type of organisation identified in (a) above. 
c. State any two values which 'Steelo Ltd.' wanted to communicate to the society.[4] 
 
18. Explain any four points that highlight the nature of principles of management.         [4] 
Page 5


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2016 
 
Time: 3 hrs Max. Marks: 80 
 
Note:  
? Please check that this question paper contains 12 printed pages. 
? Code number given on the right hand side of the question paper should be written on the 
title page of the answer-book by the candidate.  
? Please check that this question paper contains 25 questions. 
? Please write down the Serial Number of the question before attempting it. 
? 15 minutes time has been allotted to read this question paper. The question paper will be 
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the students will read the 
question paper only and will not write any answer on the answer-book during this 
period. 
  
General Instructions: 
(i) All questions in both the sections are compulsory.  
(ii) Marks for questions are indicated against each question. 
(iii) Questions Nos. 1 – 8 are very short-answer questions carrying 1 mark each. They are 
required to be answered in one sentence each. 
(iv) Questions Nos. 9 – 13 are short answer questions carrying 3 marks each. Answers to 
them should normally not exceed 50 – 75 words each. 
(v) Questions Nos. 14 – 19 are also short answer questions carrying 4 marks each. 
Answers to them should normally not exceed 150 words each. 
(vi) Question Nos. 20 – 22 are long-answer questions carrying 5 marks each. Answers to 
them should normally not exceed 150 words each.  
(vii) Question Nos. 23 – 25 are long-answer questions carrying 6 marks each. Answers to 
them should normally not exceed 200 words each.  
(viii)  Answers should be brief and to the point and the above word limits should be 
adhered to as far as possible. 
 
 
1. Name the marketing function which is concerned with informing the customers about 
the firm's products. [1] 
 
2. Radhika and Vani who are young fashion designers left their job with a famous fashion 
designer chain to set-up a company 'Fashionate Pvt. Ltd.' They decided to run a 
boutique during the day and coaching classes for entrance examination of National 
Institute of Fashion Designing in the evening. For the coaching centre they hired the 
first floor of a nearby building. Their major expense was money spent on photocopying 
of notes for their students. They thought of buying a photocopier knowing fully that 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
their scale of operations was not sufficient to make full use of the photocopier.  
In the basement of the building of 'Fashionate Pvt. Ltd.' Praveen and Ramesh were 
carrying on a printing and stationery business in the name on 'Neo Prints Pvt. Ltd.' 
Radhika approached Praveen with the proposal to buy a photocopier jointly which 
could be used by both of them without making separate investment. Praveen agreed to 
this.  
Identify the factor affecting fixed capital requirements of 'Fashionate Pvt. Ltd.' [1] 
 
3. The size of assets, the profitability and competitiveness are affected by one of the 
financial decisions. Name and state the decision. [1] 
 
4. 'Management is the process of getting things done.' State the meaning of the term 
'process' used in this statement. [1] 
 
5. Manuj bought a packet of chips from a local shopkeeper and found that the ingredients 
given on the label were not legible. He complained about it to the company. The 
company sent a written apology stating that they will make sure that existing packets 
are withdrawn from the market and new packets with legible labels are soon made 
available. 
State the consumer right which Manuj exercised. [1] 
 
6. Name the type of 'organisational structure' which promotes efficiency in utilisation of 
manpower. [1] 
7. Give the meaning of 'accountability' as an element of delegation. [1] 
8. State the role of 'inspector' in 'functional foremanship.' [1] 
9. Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the Human 
Resource Manager of 'Senor Enterprises Ltd.' decided to leave the company. 
The Chief Executive Officer of the company called Jyoti the Human Resource Manager 
and requested her to fill up the vacancies before leaving the organisation. Informing 
that her subordinate Miss Alka Pandit was very competent and trustworthy, Jyoti 
suggested that if she could be moved up in the hierarchy, she would do the needful. The 
Chief Executive Officer agreed for the same. Miss Alka Pandit contacted 'Keith 
Recruiters' who advertised for the post of marketing head for 'Senor Enterprises Ltd., 
They were able to recruit a suitable candidate for the company. Raman's vacancy was 
filled up by screening the database of unsolicited applications lying in the office.  
a. Name the internal/external sources of recruitment used by 'Senor Enterprises 
Ltd.' to fill up the above state vacancies.  
b. Also state any one merit of each of the above identified source of recruitment. [3] 
 
10. Mr. Sanjay Nehra was the Chairman of 'Taran Bank.' The bank was earning good profits. 
Shareholders were happy as the bank was paying regular dividends. The market price 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
of their shares was also steadily rising. The bank was about to announce taking over of 
'Vena Bank.'  
Mr. Sanjay Nehra knew that the share price of 'Taran Bank' would rise on this 
announcement. Being a part of the bank, he was not allowed to buy shares of the bank. 
He called one of his rich friends Sudhir and asked him to invest Rs 5 crores in shares of 
his bank promising him the capital gains.  
As expected the share prices went up by 40% and the market price of Suhir's shares 
was now Rs 7 crores. He earned a profit of Rs 2 crores. He gave Rs 1 crore to Mr. Sanjay 
Nehra and kept Rs 1 crore with himself. On regular inspection and by conducting 
enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was 
able to detect this irregularity. The SEBI imposed a heavy penalty on Mr. Sanjay Nehra. 
By quoting the lines from the above para identify and state any two functions that were 
performed by SEBI in the above case.  [3]  
 
11. State any three functions performed by non-governmental organisations for consumer 
protection.  [3] 
 
12. Mr. Shubhendu Bose is the owner of 'Bikmac Enterprises' carrying on the business of 
manufacturing various kinds of biscuits. There was a lot of discontentment in the 
organisation and the targets were not being met. He asked his son. Naval, who had 
recently completed his MBA, to find out the reason. Naval found that all decision 
making of the enterprise were in the hands of his father. His father didn't believe in his 
employees. As a result both the employer and the employees were not able to 
understand each other’s message in the same sense. Thus, the employees were not 
happy and targets were not met.          
a. Identify any two communication barriers because of which Bikmac Enterprises 
was not able to achieve its target. 
b. State one more barrier each of the types identified in (a) above. [3] 
 
13. Explain any three points of importance of planning. [3] 
 
14. 'Alfa Ltd.' was dealing in renewable energy. To get the business, the team leader and his 
team used to travel to different states to give presentation to their clients. As per the 
policy of the company, the leader used to travel by air, whereas his team travelled by 
road/train. It was not only time consuming but also at time forced female team 
members to travel alone.  
As a result, the subordinates were not acting in a desired manner to achieve 
organisational goals. The CEO came to know about it. He called the team leader, 
discussed the matter with him and decided to change the travel policy of the company. 
It was decided that all the members including the leader would travel together in future 
and would usefully utilise the travelling time in discussion with the subordinates about 
presentation to be given to the clients. This made a positive impact and every member 
of the team started acting in a manner as desired by the team leader.  
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
State the features of the element of the function of management used by the CEO. [4] 
 
15. A company was marketing 'water purifiers' which were very popular due to their 
quality and after sales services provided to the customers. The company was a leading 
company in the market and earning huge profit. Because of huge profits the company 
ignored the after sales services. As a result its relations with the customers got spoiled 
and the image of the company was damaged in the public. Top Management become 
concerned when the profits for the current quarter fell steeply. 
On analysis it was revealed that ignoring the after sales services was its reason. 
Therefore the company took all possible measures to protect and promote its 
favourable image in the eyes of the public. As a result the goodwill of the company 
improved in the society.  
a. Name and state the communication tool used by the marketer in the above case 
to improve its image. 
b. Also explain role of the tool as identified in part (a). [4] 
 
16. A recent rate cut in the interest on loans announced by the Banks encouraged Amit, a 
science student of Progressive School to take a loan from State Bank of India to 
experiment and develop cars to be powered by fuel produced from garbage. He 
developed such a car and exhibited it in the Science Fair organised by Directorate of 
Education. He was awarded first prize for his invention.  
Identify and explain the dimensions of business environment discussed in the above 
case.  [4] 
 
17. 'Steelo Ltd.' decided to set-up its steel manufacturing factory in the backward area of 
Orissa where very less job opportunities were available. People of that area welcomed 
this effort of 'Steelo Ltd.' To attract people to work in its factory it also decided to 
provide many other facilities like school. Hospital, market etc. in the factory premises. 
'Steelo Ltd.' started earning huge profits. Another competing company asked its 
production manager 'Aslam' to investigate the reasons of earning huge profits by 
'Steelo Ltd.' 
Aslam found that in both the companies there was systematic coordination among the 
various activities to achieve organisational goals. Every employee knew who was 
responsible and accountable to whom. The only difference was that in his organisation 
communication took place only through the scalar chain whereas 'Steelo Ltd.' was 
allowing flow of communication in all the directions as per the requirement which lead 
to faster spread of information as well as quick feedback.  
a. Identify the type of organisation which permits 'Steelo Ltd.' the flow of 
communication in all the directions. 
b. State another advantage of the type of organisation identified in (a) above. 
c. State any two values which 'Steelo Ltd.' wanted to communicate to the society.[4] 
 
18. Explain any four points that highlight the nature of principles of management.         [4] 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 ? 2016 
 
     
 
19. State any four methods of floatation of new issues in the primary market. [4] 
 
20. Arun is working in a multinational company in Gurgaon. He was running temperature 
for the last many days. When his blood was tested, he was found positive for dengue 
with a very low platelet count. Therefore, he was admitted in the hospital and a blood 
transfusion was advised by the doctors. One of his colleagues sent a text message about 
it to his immediate superior 'Mr. Narain'. 'Mr. Narain' in turn sent a text message to the 
employees of the organisation requesting them to donate blood for Arun. When the 
General Manager came to know about it, he ordered for fumigation in the company 
premises and cleanliness of the surroundings.  
a. From the above para quote lines that indicate formal and informal communication. 
b. State any two features of informal communication. 
c. Identify any two values that are being communicated to the society in the above case[5] 
 
21. Two years ago Madhu completed her degree in food technology. She worked for 
sometime in a company manufacturing chutneys, pickles and murabbas. She was not 
happy in the company and decided to have her own organic food processing unit for the 
same. She set the objectives and the targets and formulated action plan to achieve the 
same. 
One of her objective was to earn 10% profit on the amount invested in the first year. It 
was decided that raw materials like fruits, vegetables, spices etc. will be purchased on 
three months credit from farmers cultivating organic crops only. She also decided to 
follow the steps required for marketing of the products through her own outlets. She 
appointed Mohan as a Production Manager who decides the exact manner in which the 
production activities are to be carried out. Mohan also prepared a statement showing 
the number of workers that will be required in the factory throughout the year. Madhu 
informed Mohan about her sales target for different products, areawise for the 
forthcoming quarter. While working on the production table a penalty of Rs 100 per 
day for not wearing the caps, gloves and apron was announced. 
Quoting lines from the above para identify and explain the different types of plans 
discussed. [5] 
 
22. Explain the relationship between controlling and planning functions of management. [5] 
 
23. Ashima purchased a bottle of tomato-sauce from the local grocery shop. The 
information provided on the bottle was not clear. She fell sick on consuming it. She filed 
a case in the District Forum under Consumer Protection Act and got the relief. 
a. Identify the important aspect neglected by the marketer in the above case. 
b. Explain briefly the functions of the aspect identified in (a) above. [6] 
 
24. 'Viyo Ltd.' is a company manufacturing textiles. It has a share capital of Rs 60 lakhs. The 
earnings per share in the previous year was Rs 0.50. For diversification, the company 
requires additional capital of Rs 40 lakhs. The company raised funds by issuing 10%