Free Business Studies - Class 12th (CBSE) - Practice Paper - Book 1 - P2
Subject: BUSINESS STUDIES
Class: XII
Maximum Marks: 80
Time: 3 Hours
General Instructions:
- This question paper contains 34 questions.
- Marks are indicated against each question.
- Answers should be brief and to the point.
- Answers to the questions carrying 3 marks may be from 50 to 75 words.
- Answers to the questions carrying 4 marks may be about 150 words.
- Answers to the questions carrying 6 marks may be about 200 words.
SECTION - A carries 1 mark each
Q1. The newly appointed Production Manager of Saheb Ltd., a firm manufacturing toys, Mr Ahrawat noticed that the workers in the factory were not giving their best as the physical conditions in the factory were not good.
He conducted an experiment to see the effect of improvement in the physical conditions in the factory on the performance of the workers, by providing adequate ventilation and water facilities.
He
observed that the fatigue level of the workers reduced. The nature of
management being highlighted in the above case is:
- Management as science
- Management as profession
- Management as art
- Both A. and C
Q2. Jasmine Ahluwalia is the manager of an artefacts museum's marketing team, responsible for promoting exhibitions and events.
In the previous season, she defined the total work of managing the events into graphic designing, registration inquiries, bill payments, etc, in order to facilitate specialisation.
However, instead of allocating work, she had assigned each team member the full responsibility of managing the promotion of an entire event.
Inspite of holding regular team meetings to take feedback, Jasmine found problems throughout the events season in the quality of graphic design, registration inquiry, bill payments, etc,.
For the upcoming events season, Jasmine has decided to divide these responsibilities on the basis of her observation of the areas in which the individual team members have excelled in the previous season and allocate the roles based on their skills and competencies.
Identify the step in the organising process which was not
properly performed in the previous season but has been duly performed for the
upcoming season.
- Identification and division of work
- Establishing reporting relationships
- Departmentalisation
- Assignment of duties
Q3. Choose the statement
that correctly highlights the benefit of using external sources of recruitment.
A. Competitive spirit
among the existing staff
B. Reduction in employee’s
turnover
C. Helps in increasing employee’s
satisfaction
D. Develops a sense of security amongst employees
Q4. Goodwill Enterprises is a large-scale automobile manufacturer, who fulfills the needs of both industrial users and consumers.
The company is providing easy finance facilities at a low rate of interest, which has considerably increased the demand for the product.
The company has installed a new branch management software to efficiently manage and coordinate activities across their multiple branches and locations.
Identify the components of the business environment
from the above case study.
A. Political and economic
environment
B. Economic and social
environment
C. Technological and
legal environment
D. Economic and technological environment
Q5. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
ASSERTION (A):
Controlling can prevent deviations.
REASON (R): Controlling helps in minimising deviations by taking actions and decisions that reduce their recurrence.
A. Both Assertion (A) and Reason (R) are true and Reason is the correct explanation of Assertion.
B. Both Assertion(A) and Reason (R) are true and Reason is not the correct explanation of Assertion.
C. Assertion (A) is true,
Reason (R) is false.
D. Assertion(A) is false, Reason(R) is true.
Q6. 'Joining a job marks the beginning of socialisation of employees at the workplace. The employee should be given a post for which he has been selected.'
Place the subsequent steps of staffing in a small organisation in the correct order:
A. Training and development, promotion and career planning, performance appraisal, compensation
B. Performance appraisal, training and development, promotion and career planning, compensation
C. Training and development, performance appraisal, promotion and career planning, compensation
D. Training and development, performance appraisal, compensation, promotion and career planning
Q7. Spiceworks, a company providing financial services to its clients is keeping a close check on the employee's activities by using biometric and retina scanning as modes of accessing the office premises, in order to ensure greater security of information in the organisation.
Choose the correct point
of significance of controlling highlighted above:
A. Controlling helps in
achievement of organisational goals
B. Controlling helps in
ensuring order and discipline
C. Controlling helps in
improving employees motivation
D. Controlling enables
optimum utilisation of resources
Q8. Which among the following is / are correct match?
a) Restricted Entry – Profession
b) Personal application – Management as an art
c) Management – Full-fledged profession
d) Science – Systematic body of knowledge
Options:
a) Only 1 is correct
b) 1, 2 and 3 are correct
c) All are correct
d) 1, 2 and 4 are correct
Q9. Effectiveness in
management refers to:
a) Completing a job on
time at minimum cost
b) Completing job at
minimum cost only
c) Reducing the cost by
producing maximum
d) Completing the job on time whatever be the cost
Q10. Which one of the
following is not an importance of staffing?
(a) Suitable division of
work among employees
(b) Developing skills in
employees
(c) Employee satisfaction
(d) Efficient use of human resources
Q11. Which one of the
following is a non-financial incentive?
(a) Recognition
(b) Perquisite
(c) Retirement benefit
(d) Stock option
Q12. Controlling is
________.
(a) Forward looking
(b) Backward looking
(c) Continuous process
(d) All of these
Q13. Gang plank is related
to
(a) communication.
(b) motivation.
(c) supervision of
workers.
(d) incentives to workers.
Q14. Management is
multidimensional because it has _________ dimension(s).
(a) One
(b) Two
(c) Three
(d) Four
Q15. Proper understanding
of business environment is not a prerequisite for
(a) tapping of useful
resources.
(b) identification of
opportunities and threats.
(c) formulation of
strategies.
(d) better coordination of employee efforts.
Q16. When Jaskaran
Singh applied for the post of Computer teacher in a school in Bhubaneswar, he
was asked to prepare a PowerPoint presentation on a particular topic during the
selection procedure. Identify the type of selection test being mentioned in the
above lines.
(a) Trade test
(c) Intelligence test
(b) Personality test
(d) Interest test
Q17. Which type of
training is provided to the new employees of an organisation in order to
familiarise them with the organisational rules and policies, their superior and
subordinate, and so on?
(a) Vestibule training
(b) Apprenticeship
training
(c) Internship training
(d) Induction training
Q18. Alo a mobility platform is in the process of laying off 400-500 employees 1n a move aimed at driving cost efficiency.
Which objective of management will the firm not be able to achieve by carrying out this process.
a) Efficiency
b) Social
c) Profit
d) Survival
Q19. Mr. Mohan, Financial manager of ABC Ltd., has prepared the annual Statement of proposed expenditure to be presented in the Annual General Meeting.
Identify the type of plan
formulated by the financial manager.
a) Budget
b) Policy
c) Goal
d) Strategy
Q20. ASSERTION (A):
Controlling can prevent deviations.
REASON (R): Controlling
helps in minimising deviations by taking actions and decisions that reduce
their recurrence.
A. Both Assertion (A) and Reason (R) are true
and Reason is the correct explanation of Assertion.
B. Both Assertion(A) and Reason (R) are true and Reason is not the correct explanation of Assertion.
C. Assertion (A) is true, Reason (R) is false.
D. Assertion(A) is false,
Reason(R) is true.
SECTION - B carries 3 marks each
Q21. How does the size of the organization bring need for the coordination in all activities?
Q22. Rishitosh Mukerjee has recently joined AMV Ltd, a company manufacturing refrigerator.
He found that his department was under-staffed and other departments were not cooperating with his department for smooth functioning of the organisation. Therefore, he ensured that his department has the required number of employees and its cooperation with other departments is improved.
- Identify the level at which Rishitosh Mukerjee was working.
- Also, state two more functions required to be performed by Rishitosh Mukerjee at this level.
Q23. 'Principles of management are general guidelines'. Explain.
OR
'Principles of management are contingent'. Explain.
Q24. Distinguish Rule and Policy as a type of plan.
SECTION - C carries 4 marks each
Q25. Konark Ltd is an electronic goods manufacturing enterprise situated in Shivpuri. It is earning low revenue compared to its competitor Noni Ltd.
Both enterprises 'operations are affected directly by the investors, customers and suppliers, which are unique to their respective locations.
In addition to this, the factors like money supply, technological changes etc. are indirectly affecting their performance.
- Identify the concept discussed in the above text and state one feature of it.
- Also, state any three points of importance of this concept.
Q26. Every year a meeting is organized in the lawns of the owner of a company. In this meeting the owner of the company grants some funds for the benefit of the families of the employees.
The employees on the other hand never resist any change or put excessive demands. The general environment in the company is very supportive to the employees.
The employee turnover ratio is very low. Which concept of management is discussed here? Explain.
Which principle of management will be
easily followed here? Also explain the principle.
Q27. Suhasini, a home science graduate from a reputed college, has recently done a cookery course.
She wished to start her own venture with a goal to provide 'health food' at reasonable prices. She discussed her idea with her teacher (mentor) who encouraged her.
After analysing various options for starting her business venture, they short listed the option to sell readymade and 'ready to make' vegetable shakes and Sattu milk shakes. Then, they weighed the pros and cons of both the short-listed options.
- Name the function of management being discussed above and give any one of its characteristics.
- Also briefly discuss any three limitations of the function discussed in the case.
OR
Laxmi Chemicals Ltd., a
soap manufacturing company, wanted to increase its market share from 30% to 55%
in the long-run. A recent report submitted by the Research & Department of
the company had predicted a growing trend of herbal and organic products.
On the basis of this report, the company decided to diversify into new variety of soaps with natural ingredients having benefits and fragrances of Jasmine, Rose, Lavender, Mogra, Lemon Grass, Green Apple, and Strawberry etc.
The Unique Selling Proposition (USP) was to promote eco-friendly living in the contemporary life style. The company decided to allocate 30 crores to achieve the objective.
- Identify the type of one of the functions of management mentioned above which will help the company to acquire dominant position in the market.
- Explain any three features of the function mentioned in the above text.
Q28. Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop 'AromaCoffeeCan' in a famous mall in New Delhi.
The specialty of the coffee ship was the special aroma of coffee and a wide variety of flavours to choose from.
Somehow, the business was neither profitable nor popular. Sanchit was keen to find out the reason.
He appointed Sandhya, an MBA from a reputed college, as a Manager to find out the cause for the same.
Sandhya took feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions in between which could be eliminated. She fixed a standard time for processing the order. She also realised that there were some flavours whose demand was not enough. So, she also decided to stop the sale of such flavours. As a result within a short period Sandhya was able to attract the customers.
Identify and explain any two techniques of scientific management used by Sandhya to solve the problem.
Q29. Explain Maslow's
hierarchy of needs in terms of business environment.
Q30. Identify the step of
controlling process applicable in the following cases:
- Esha is keenly observing the quantity of capsules produced in a pharmaceutical company. She realises that there is no need for any action to be taken as the deviations are within the acceptable limits. A day later when she comes to work, she finds the situation opposite to that of the previous day. This time the deviation was beyond the acceptable range and needed immediate action. She called her subordinates and told them that this should not happen again.
- Mahesh who is the owner of a company has decided to focus only on a few activities of his business. He considers that the rest of all activities are not critical to the performance of his company. One such area he finds is of labour. The labour cost recently went up by 4% sending signals of coming danger. Now he will put his efforts to control this variation by arranging labour at a cheaper rate.
- In a company a manager is trying to find out the deviation between the actual number of fans produced and the desired number. He already knows about the standard as the company has assigned him a definite quantity of fans to be produced.
- Manoj Khanna a senior experience manager is concerned about the 2% rise in the raw materials. However, he knows that this is an acceptable range. He tells his staff that if this rise goes beyond 2% it should be brought into the notice of management. Then he sets a limit of 5% when the management should give it the priority over other activities.
SECTION - D carries 6 marks each
Q31. Differentiate between 'functional and 'divisional' structure organization on any five basis.
OR
Distinguish Decentralization and delegation in an organization.
Q32. Ramdas, aged 49 is working in an aviation company. He is the senior most employee in his division. He is even senior to the division manager, Kanaputti. Ramdas is considered one of the most committed, capable and hard-working employees.
As a result of his abilities and seniority, he generally received the work assignments of his choice. Although there was no formal designation of various special' projects assigned to Ramdas, he handled them as a matter of routine.
A problem developed when an able and intelligent person Nagarjuna, aged 33, was appointed by Kanaputti. Nagarjun's previous three years' experience in the closely related work, made it possible for him to catch on to the routine work of his new job more rapidly than was customary for a new employee.
On several occasions, Kanaputti noticed the tension developing between the two employees. However, he didn't want to get involved in their personal issues as long as the work was completed effectively and efficiently by them.
One day, the tension between them reached the boiling point and Ramdas complained to Kanaputti stating that his duties were being largely taken over by Nagarjun.
Kanaputti issued the order stating the clear allocation of the jobs and related duties between the two.
He further clarified the working relationship between them by specifying who was to report to whom.
This helped in reducing the workload, enhancing productivity and removing ambiguity.
- Identify and state the step of organizing process which has not been carried out properly and contributed to this problem.
- State the two steps of the organizing process which have been taken by Kanaputti to respond to the complaint of Ramdas.
- Also state and explain two points of importance of organizing as reflected in the above case.
Q33. Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for itself and had been doing well. It was known for timely completion of orders.
The Production Manager, Ms. Kanta was efficiently handling the processing of order and had a team of fourteen motivated employees working under her. Everything was going on well.
Unfortunately, she met with an accident. Umang knew that in the absence of Ms. Kanta, the company may not be able to meet the deadlines.
He also knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of business and goodwill. So, he had a meeting with his employees in which accurate the speedy processing of orders was planned.
Everybody agreed to work as team because the behaviour of Umang Gupta was positive towards the employees of the organisation. Hence everyone put in extra time and efforts and the targets were met on time. Not only this, Umang visited Ms. Kanta and advised her to take sufficient rest.
- Identify and explain the leadership style of Umang Gupta and draw a diagram depicting the style.
- Explain any four financial incentives that can be given to employees by Umang Gupta.
34. Briefly explain the steps in the process of staffing.
OR
Explain all the steps
involved in Selection process.
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