CBSE Class 12th Business Studies Practice Paper - Book 1 - P1

Free Business Studies - Class 12th (CBSE) - Practice Paper - Book 1 - P1

Students who want to score better in their CBSE board exams, specifically Business Studies, should practice more.

Also, Business Studies seems an easy subject, but it requires an understanding of each concept.

Therefore, expert CBSE teachers have prepared the examination paper below to guide you in solving each section easily.

Let's start the question paper to score well in your examinations. 

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CBSE Class 12th Business Studies Question Paper

General Instructions: -

1. There are 34 questions in the question paper.
2. All questions are compulsory
3. Question nos. 1 to 20 carrying 1 mark each.
4. Question nos. 21-24 are short answer type–I questions carrying 3 marks each.
5. Question nos. 25-30 are short answer type–II questions carrying 4 marks each.
6. Question nos.-31-34 are long answer type questions carrying 6 marks each.

Q1. The leadership style in which subordinates act according to the command given by the manager and the communication is one way, is known as:

1. Autocratic leadership style
2. Democratic leadership style
3. Free-rein leadership style
4. None of the above

 Q2. Read the following statements carefully:

• Statement I : A rule reflects a managerial decision that a certain action must or must not be taken.
• Statement II : A rule allows flexibility or discretion.

In the light of the given statements, choose the correct alternative from the following:

1. Both Statement I and Statement II are true.
2. Both Statement I and Statement II are false.
3. Statement I is true and Statement II is false.
4. Statement I is false and Statement II is true.

Q3. A Dairy started using the environmentally friendly 'Bilona' method of making ghee, unlike other dairies which were using modern methods involving machines and chemicals. By doing this, it is providing employment to hundreds of illiterate people in the rural areas. Which objective of management it is trying to achieve?

1. National objective
2. Personal objective
3. Social objective
4. Economic objective

 Q4. Identify the principle of management highlighted in the picture below.

1. Equity
2. Remuneration
3. Cooperation, not individualism
4. Order

 Q5. Read the following statements carefully and choose the correct Option,

• Statement I - Environment is a complex phenomenon that is relatively easier to understand in parts but difficult to grasp in its totality.
• Statement II - Frequent environmental changes in the field of technology and fashion industry are related with uncertainty of business environment.

1. Statement I is correct, and Statement II is incorrect
2. Statement II is correct, and Statement I is incorrect
3. Both the statements are correct
4. Both the statements are incorrect

Q6. Match the following functions of Production In-charges stated in Column-II with their names in Column-I. 

Column-I	Column-II
1. Speed Boss	(i) To ensure proper working conditions of machines and tools
2. Gang Boss	(ii) To check the quality of work
3. Repair Boss	(iii) To keep machines and tools, etc. ready for operation by workers
4. Inspector	(iv) To ensure timely and accurate completion of job

Choose the correct option from the following :

1. 1-(iii), 2-(iv), 3-(ii), 4-(i)
2. 1-(ii), 2-(i), 3-(iii), 4-(iv)
3. 1-(i), 2-(ii), 3-(iii), 4-(iv)
4. 1-(iv), 2-(iii), 3-(i), 4-(ii)

Q7. The basic role of strategy is to provide

1. Setting procedures
2. Direction for action
3. Direction for motivation
4. Direction for control

Q8. Jackon company gets applications on and off even without declaring any vacancy. However, as and when the vacancy arises, the company makes use of such applications. Name the source of recruitment used by the company.

1. Direct recruitment
2. Casual Callers
3. Recommendations of employees
4. Web Publishing

Q9. The framework within which managerial and operating tasks are performed, which specifies the relationship between people, work and resources and allows coordination among different resources to accomplish desired goals is known as:

1. Organization chart
2. Levels of management
3. Span of management
4. Organization structure

Q10. Zareen has been awarded the ‘Employee of the Month’ award. His name has been displayed on the notice board. Which incentive has been given to him.

1. Employee recognition programme
2. Employee participation
3. Employee empowerment
4. Organizational climate

 Q11. ASSERTION (A): Planning is a me saving process.

REASON (R): The success of an enterprise is possible only when plans are properly drawn up and implemented.

1. Both (A) and (R) are true, and (R) is the correct explanation of (A).
2. Both (A) and (R) are true, and (R) is not the correct explanation of (A).
3. (A) is true, but (R) is false.
4. (A) is false, but (R) is true.

Q12. Amazon Prime has adopted “Freedom and Responsibility Culture" gives employees the power to make decisions in the best interests of the company. 

This approach has helped Amazon Prime to stay ahead of the curve in the highly competitive entertainment industry. identify the concept of organizing discussed in the above case.

1. Delegation
2. Decentralization
3. Organizational structure
4. Organizing process

Q13. As the span of management increases in an organization, the number of levels of management in the organization:

1. Increases
2. Decreases
3. Remains unaffected
4. None of the above

 Q14. Which of the following statements is not true?

1. Top management has the highest level of authority, and it reduces successively
2. Excess of authority over responsibility will lead to misuse of authority
3. Authority is delegated; Responsibility is assumed; accountability is imposed.
4. Both responsibility and accountability can be delegated.

Q15. A company manufactures garments. The manager wants to increase profits by purchasing new high-speed machines or increasing the sale price or using waste materials in manufacturing stuffed toys. He decided that “using waste material” is the best solution on for him.

Identify the function of management involved here.

1. Directing
2. Planning
3. Organizing
4. Controlling

 Q16. Neeru has been working under the guidance of Tarun, a carpenter, for the last three years to learn the different skills of this job. Name the on-the-job method of training Neeru is undergoing.

1. Apprenticeship training
2. Internship training
3. Vestibule training
4. Induction training

Q17. Kamy emphasized dividing the work among the employees based on their skills and expertise”

Which principle is followed in the given statement :

1. Scalar chain
2. Division of work
3. Unity of command
4. Remuneration

Q18. Daizy Ltd. assured their employees that despite the recession no worker will be retrenched from the job. Name the type of incentive offered to the employees

1. Job enrichment
2. Career advancement opportunity
3. Job security
4. Employee empowerment

Q19. According to Taylor, “even a small production activity like loading figures of iron into boxes can be scientifically planned and managed. This can result in tremendous savings of human energy as well as wastage of time and materials. Identify the related principle of scientific management.

1. Harmony, not discord
2. Science, not rule of thumb
3. Development of each and every person to get his/her greatest efficiency and prosperity
4. Order

Q20. A truck manufacturing company Tame Ltd. has its registered office in Delhi, the manufacturing unit at U.P and marketing department is located at Gujarat. Which type of organization structure should it adopt to achieve its target?

1. Functional structure
2. Formal organization structure
3. Divisional structure
4. Informal organization structure

 Q 21. Explain all the features of Principles of management.

Q 22. Which is sometimes considered as a sperate function of management and the essence of management? Why do you think it is necessary?

Q 23. Differentiate between Standing plans and single use plans. 

Q 24. Mayur Kapoor is working as a departmental manager at unclog company. Identify his level of management and state the functions to be performed by him.

Q 25. Zenith Ltd is a company that manufactures high-end bicycles.

It recently noticed that a new government policy promoting the use of non-motorized transport has been introduced. 

This has led to a significant increase in the demand for bicycles. The company's management is also closely monitoring the rising fuel prices, which they believe will further boost their sales.

However, they are also concerned about the entry of new competitors into the market, who are offering similar products at a lower price.

• Identify and explain the 1 dimension of the business environment discussed in the above case.
• Explain any 2 importance of understanding the business environment for Zenith Ltd.
• Explain any 1 feature of business environment from the case study.

Q 26. Although informal organizations create unique challenges and potential problems for management, they can also boost performance in formal organization. 

They may contribute positively to the smooth functioning of a formal organization, a formal organization where rigidity of its rules sometimes occurs, informal relationship has frequently been instrumental if not helpful in overcoming the obstacle and easing the workflow. 

Informal groups can keep their members informed on what administrative actions, policies, processes and standards that affect them. 

An awareness of management’s ’intended actions, policies, processes and standards enables employees to position themselves strategically to effectively execute tasks expected of them, at times resulting in rumors. 

Informal groups in organizations encourage managers to prepare, plan, organize, and control in a more professional fashion. 

Not only this, but the informal group also provides a means for relieving emotional and psychological pressures (such as frustration, tension, and emotional problems) with management and other employees by allowing a person to discuss them among friends openly. Identify which advantages of informal organization discussed above and discuss anyone disadvantage.

Q 27. Karan is working as the product manager of DTM Pvt Ltd. In his work he lays a lot of emphasis on good planning. While planning he uses foresight, intelligence and creativity. This leads to a high success rate for the projects that are under his control. 

Before finalizing any plan, he makes alternative plans, evaluates them and then selects the best. In the process of planning, he involves other managers too. However, he knows it is not necessary that all his plans will always be successful. 

He is also aware that sometimes the plans that he makes consume a lot of money and need to be changed, keeping in mind changed environmental conditions. 

Based on the information given about DTM Pvt Ltd, answer the following question:

• Which feature of planning has been highlighted in the above case?
• Identify and explain the limitations of planning that have been highlighted in the above case.

Q 28. Each employee of ‘Vijay Ltd. ‘should manufacture 10 tables per day as per the terms of employment. All the employees met the said target except a few who manufactured between 4 to 6 tables per day.

The management look a decision to install Closed Circuit Television (CCTV’s) in the factory to monitor the activities of the employees.

• Identify the managerial function discussed above
• Explain all the steps in the process of the function identified in (a) above.

Q29. Explain  Maslow's hierarchy of needs in terms of business environment.

                                                    Or

Explain Semantic and Psychological barriers.

Q 30. Explain (A) Standardization (B) Differential Piece wage system as principles of Scientific Management.

Q 31. Explain the process of Organising and its important.

                                    Or

Explain the Selection process.

Q 32. Differentiate between Decentralization and delegation in an organization.

Q 33. Explain all the 4 types of Leadership styles.

                                     Or

Explain the ways to incentivize the employees of an organization.

Q 34. Briefly explain methods of recruitment

                                     Or

Explain the process of planning and its limitations.

The End

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