CBSE Class 12 Business Studies
Sample Paper-3 (2017-18)
Time allowed: 3 hours, Maximum Marks: 80
i. Answer to questions carrying 1 mark may be from one word to one sentence.
ii. Answer to questions carrying 3 marks may be from 50 to 75 words.
iii. Answer to questions carrying 4-5 marks may be about 150 words.
iv. Answer to questions carrying 6 marks may be about 200 words.
v. Attempt all parts of a question together.
vi. Question Nos. 1 to 8 are very short-answer questions carrying 1 mark each.
vii. Question Nos. 9 to 13 carry 3 marks each.
viii. Question Nos. 14 to 19 carry 4 marks each.
ix. Question Nos. 20 to 22 carry 5 marks each.
x. Question Nos. 23 to 25 carry 6 marks each.
Q1. Name the elements of directing.
Q2. Differentiate between authority and responsibility.
Ans: Authority refers to the right of an individual to command his subordinate where as responsibility is the obligation of the subordinate to perform the duty properly.
Q3. Name the function of management that recognizes the importance of the every single person employed by an organization?
Q4. It is the custom of ABC Ltd. to avoid saying 'No' to any person who approaches it for a job. Rather it gets his application and tells him that as and when the company requires his services, he will be called. In this way, company acquires a database. Recently the company required data entry operator urgently. The company referred to the database and got a suitable candidate for the job without incurring any expenses. Identify the source of recruitment referred to in the above paragraph.
Ans: Casual callers.
Q5. ABC Ltd. is a large manufacturing unit. Recently, the company had conducted the 'time' and 'motion' studies and concluded that on an average a worker could produce 120 units per day. However, it has been noticed that average daily production of a worker is in the range of 80-90 units per day. Suggest a step to ensure that the actual performance is in accordance with the performance as per 'time' and 'motion' studies.
Ans: Time taken by the worker be compared by the standard time, also his motions (movements) be compared with the standard movements.
Q6. Besides the dividend decision the finance function is concerned with two other broad decisions. Name these decisions.
Ans: Investment decision, financing decision.
Q7. Angel's friend gifted her share certificates on her marriage in the year 1992. Now she wanted to sell them. She approached a broker who informed her that for doing transaction in shares, She will have to open an account with depository. Name the depository available in India for the above transaction of shares.
Ans: NSDL, CDSL.
Q8. On the occasion of Holi, Nandu purchased gujiya. On consumption of sweets, his friends and he himself fell sick. He wanted to file a case in the consumer court but could not do so because he did not have any proof of buying the sweets. Name the document that Nandu must had obtained for complaining in consumer court.
Ans: Cash memo
Q9. What is "liberalization"? List its impacts on business and industry after the changes in government economic policy. (any four)
To remove the restrictions fo licensing system and leave industry free from license -
permit quota Raj. Impact (Any four)
i. Increasing competition
ii. More demanding customers
iii. Rapidly changing environment
iv. Market orientation
v. Necessity for change
vi. Need to develop human resource.
Q10. Differentiate between policies and Rules.
1. Guide to decision Making
Clearly lay what is to be done & what not.
2. Ex. No sale on credit
Ex. Smoking is prohibited
3. Flexible, can be Changed to some Extent
Rigid, no change is permissible
Q11. "Controlling is looking back". Explain.
Ans: Controlling is looking back because future planning is guided by past experience.
Q12. Rama, after acquiring fashion designing degree took over her family garment manufacturing company producing kids, men and women. The business was doing reasonably well. However the fixed operating costs of the business were high and cash flow position was irregular. She wanted to diversify her business. Her finance manager estimated that around Rs. 50 lakh would be required for undertaking this programme and informed her that the stock market was going throught a bullish phase. Identify which source of finance should the company use (with 2 reasons)
Ans: Equity shares. Reasons (i) Weak cash flow position (ii) Bullish market phase.
Q13. Identify the marketing management philosophy adopted in the following cases:
a. Chanda, a note-book manufacturer for students, decided to maximize her profit by producing and distributing at large scale and there by reducing the average cost of production.
b. Indira, a dealer of refrigerators decided to maximize her profits by using different promotional efforts in an aggressive way.
c. Shikha, surveyed the market and found that customers need lemon based cold drinks in summers. She decided to produce lemon-masala cold drinks in the market.
a. Production concept
b. Selling concept
c. Marketing concept
Q14. 'Kanpur Machines Ltd." is the manufacturer of home atta chakkis. It is producing on large scale and its organisational structure is functional. In the production department various foremen have been employed. Each foreman has been made responsible for production planning, implementation and control. This has led to a situation of confusion and uncertainty. Suggest and explain a technique of scientific management to Kanpur Machines Ltd.
which may help it to effectively organise planning and its execution.
(Anythree) - Revolves round production planning, implementation & control.
Suggest division of work
Extension of principle
Identifies all the qualities for effective planning & execution.
Q15. Virat Computers Ltd. is a leading company in Computer Technology and IT services. The Chief Executive Officer of the company attributes the success of the Company to its managerial team spirit, which have helped to handle rapid changes in technologies and to transform threats into opportunities. Like any other business enterprise profits are important for survival and growth of Virat Computers Ltd. The management of the company believes that a satisfied employee creates a satisfied customer, who in turn creates profits that leads to satisfied shareholders. The company has a strong sense of social responsibility. It has set up many educational institutions in the field of management, engineering and computer education in which half of the students are girls.
On the basis of the given information about Virat Computers Ltd.
a. Identity and explain the objectives of the company discussed in the above para.
Ans: a. Organizational objectives
Profits are important…………………….. Ltd.
b. Also quote the lines for the identified objectives.
b. Personal objectives
- Satisfied employees ……………….
c. Social objectives
- Educational institutions …………
- Half of the students are girls
Q16. 'Planning facilitates decision-making' and 'reduces the risks of uncertainity'. Explain how?
Planning facilitates decision making
By evaluating positive and negative effects of alternatives.
By choosing most positive and suitable alternative.
Planning reduces the risk of uncertainity.
This helps in developing future course of actions against uncertainity & change.
Q17. Name the process that helps in choosing the best person out of a number of prospective candidates for a job. Explain the first three steps of this process also.
Q18. India’s speed of economic development was very slow because of lack of saving and investment habit of the people. Then a market emerged that helped people in acquiring the habit of saving. These savings were invested. This helped in establishing industries. This market came to be known as the barometer of India’s economic development. It has its own rules and byelaws and also safe guards the interests of investors. It has to comply with the guidance issued by SEBI. This market guides the investors by providing various types of information.
i. Identify the market mentioned in the above paragraph.
Ans: Stock exchange
ii. Explain three functions of market as identified in point (i) above.
a. Contributes to economic growth
b. Safety of transaction
c. Spreading of equity cult.
Q19. J.C. printer appoints Mr. Tarun as supervisor of their production department. He is kind and guides his subordinates. He clarifies their doubts in performing the task. He closely moritores the activities, leading to better utilization of all the resources He also gives orders and directions to his subordinates. He is always in direct contact with his subordinates. As a result ideas, suggestions, complaints etc of employees are continuously received by him.
Quoting the lines from the above para, state the functions of the supervisor exhibited above. What positive values are exhibited by Mr. Tarun?
"He closely monitors the activities, leading to better utilization of all the resources" Optimum utilization of resources.
"He also gives orders and directions to his subordinates". Improves communication
"He is always ……………… complaints etc."
Values - Helpful
Q20. Sushil after completing his studies joined his fathers's business of selling and distribution of sweets and namkeens. He himself is a trained chef and knows about technicalities of cooking .By using his knowledge and working through a combination of practice, creativity, imagination, initiative and innovation he succeeded in developing a food chain which helped his father to fulfil economic objectives. His efforts not only saved his father's business to close but also grew it manifold.
1. Identify the nature of management being discussed above.
Ans: Management as Art.
2. Explain other two ways in which nature of management is described.
Management is a science
Systemalised body of knowledge.
Principles based on experimentation
It is a social science
Management as profession
Well defined body of knowledge
Ethical code of conduct
Developing as profession.
Q21. Controlling ensures effective and efficient performance of every employee in the organisation. Do you agree? Give reasons.
Importance of controlling:
i. Accomplishment of organizational goals.
ii. Judging accuracy of standards.
iii. Making efficient use of resources.
iv. Improving employee motivation.
v. Ensuring order and discipline.
Q22. Vaidehi’s daughter Rangoli got first position in 12th CBSE examination. To celebrate the success. Vaidehi' bought Vanilia and chocolate flavour ice-creams from "Cool Ice Parlour". Her daughter was very happy and the all family members enjoyed the icecream at night. Following morning, almost every family member complained about stomach pain and Rangoli was severely sick and taken to doctor. Doctor diagnosed it as food poisoning. Vaidehi went to "Cool Ice parlour, for complaining, but the parlour owner sent her back saying that they are just traders of ice-creams and not manufacturers. Incidentally after one week when Rangoli recovered, Vaidehi visited her sister-in-law alongwith Rangoli, where she listened "Jago grahak Jago" on Radio. She came to know about different NGO's and consumer associations which could help her in many ways. State how such associations could help Vaidehi?
i. Educating about consumer rights
ii. Carrying out testing of consumer products
iii. Providing legal assistance
iv. Encourage consumers to strongly take an action against unfair trade practices.
v. Filing complaints on behalf of consumers. (with suitable explanation)
Q23. Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to make her business unit as the one stop platform for working women. Which type of structure would you recommend for her expanded organization and why?
Divisional structure is recommended for the expansion of business. The business is dealing in diversified products, so divisional structure will provide an opportunity to add
additional division in case new products are added.
With divisional structure she will be able to:
i. Achieve product specialization
ii. Enjoy opportunities for growth and expansion.
iii. Fix clear accountability.
iv. Facilitate faster decision making, flexibility and initiative from heads of divisions.
Q24. "Determining the relative proportion of various types of funds depends upon various factors". Explain any four such factors.
i. Cash flow position
ii. Interest coverage ratio
iii. Tax rate
v. Floatation costs
ix. Regulatory framework
x. Stock market conditions.
Q25. Mehwish Dar is a recognized top business women of her generation in Ganderbal district in Jammu and Kashmir. She is a role model for family business especially for women within them. She attributes much of her success to her grandmother and founder of the company. Her business deals in a wide variety of export quality handicraft like Hand woven shawls, Mufflers and jackets and other handicrafts. She keeps on refining her marketing mix from time to time to make it more appealable and competitive. Keeping in view the specific nature of business she wants to make it sure that her products should be available at right time and at right place to the consumers. Considering Mehwish's business explain different components involved in physical handling and movement of goods from place of production to the place of distribution.
c. Order processing
d. Inventory control (with explanation)