CBSE Class 12 Sample Paper 2021 for Business Studies

CLASS XII

BUSINESS STUDIES

SAMPLE QUESTION PAPER 2020-21

MM – 80 TIME: 3 HOURS

General instructions:

1 This question paper contains 34 questions.

2. Marks are indicated against each question.

3. Answer should be brief and to the point.

4. Answers to the questions carrying 3 marks may be from 50 to 75 worlds.

5. Answers to the questions carrying 4 marks may be about 150 worlds.

6. Answers to the questions carrying 6 marks may be about 200 worlds.

7. Attempt all parts of the questions together.

1. ------------------------- is the process of dividing work into manageable activities and then 1
grouping the activities which are similar in nature.

A. Coordination B. Departmentalisation

C. Organisation Structure D. Delegation of authority

2. Even Though the political conditions vary from country to country, they impact the 1
sentiment of an investor in the business, if the instability of the political conditions cause
uncertainty and make it difficult for him to predict the future. Which feature of the
Business environment is being highlighted in the above statement?

A. Specific and general forces B. Dynamic nature

C. Relativity D. All the above.

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3. “Any one can be called a manager irrespective of the educational qualification possessed.” 1

Identify the characteristic of the profession that Management does not fulfil in the
statement being discussed above.

A. Ethical code of Conduct B. Professional Association

C. Restricted Entry D. Service Motive

4. “Even after opening up of the Indian economy in 1991 foreign companies found it 1
extremely difficult to cut through the bureaucratic red tape to get permits for doing
business in India, which created a negative impact on business.”

Identify the dimension of the business environment which led to creation of the negative
impact on business.

A. Social Environment B. Technological

C. Political Environment D. Legal Environment

5. Name the process of working with and through others to effectively achieve 1
organisational objectives by efficiently using limited resources in a changing
environment.

A. Management B. Planning

C. Organising D. Controlling.

6. “The increase in the demand for many Ayurvedic medicines, Health products and 1
services in the past few months, is related to the need for building immunity and an
increased awareness for health care due to the spread of Corona virus.” Identify the
feature of business environment being described above.

A. Specific and general forces B. Interrelatedness

C. Relativity D. None of the above

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7. Which of the following is not an element of social environment? 1

(a) A. Birth and Death rate B. Constitution of the country

(c) C. Population Shifts D. Life expectancy

8. ‘Even where members of a department willingly cooperate and work, a manager has to 1
coordinate the efforts of different people in a conscious manner.’ Identify the
characteristic of coordination discussed above.

A. Coordination ensures unity of action

B. Coordination is a deliberate function

C. Coordination is a continuous process

D. Coordination is an all-pervasive function

9. Name the function of management which helps in the formulation of future plans, in 1
the light of the problems that were identified and thus, helps in better planning in the
future period.

A. Planning B. Organising

C. Directing D. Controlling

10. Identify an important principle of management control in which only significant 1
deviations which go beyond the permissible limit should be brought to the notice
of management.

A. Management by control B. Control by exception

C. Critical point control D. (a)&(b)

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11. ___________________________is the process by which the manager brings order out of 1
chaos, removes conflict among people over work or responsibility sharing and
creates an environment suitable for teamwork.

A. Planning B. Organising

C. Staffing D. Controlling

OR

---------------------------------- ensures that the heads of separate business units in the
organisation are responsible for profit or loss of their unit and have authority over it.

A. Span of management B. Divisional Structure

C. Functional structure D. Hierarchy of Authority.

12. Match the concept of marketing in Column I with their respective definition in Column 1
II

COLUMN – II
COLUMN – I

A) Product Concept i. relates to maintaining high quality of the product

B) Selling ii relates to satisfying customer needs
Concept

C) Marketing iii. relates to aggressively persuading buyer to purchase the
Concept product

A. i,ii,iii B. ii,i,iii

B. iii,ii,i D. i,iii,ii

OR

In order to get feedback about its recently launched immunity boosting ayurvedic
medicine, Atulya limited conducted an online survey using a questionnaire, to gather
customer views and opinions. Identify the marketing function being used by Atulya

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Limited:

A. Standardisation B. Product Designing

C. Customer support service D. Gathering and analyzing market information

Read the following text and answer question No.13-16 on the basis of the same:
1
ISQAA SOLAR limited is searching options to raise ₹20,000 crores from the primary
market for diversification and modernisation of existing projects. It hired the services of a
renowned financial consultancy firm, DHAN LAXMI PVT. LTD. for suggesting options for
the same. DHAN LAXMI PVT. LTD. suggested a list of options to the Board of Directors of
the company. It was decided that for the immediate requirement of ₹1500 crores the
company will give a privilege to existing shareholders to subscribe to a new issue of
shares according to the terms and conditions of the company. ₹4500 crores would be
raised by allotment of securities to a consortium of financial institutions, instead of
inviting subscription from the public by making a direct appeal to investors to raise
capital. It was further decided to raise capital to the tune of ₹6000 crores through an
issuing house. All these options were accepted by the Board of Directors. The Board
further decided to raise ₹8,000 crores through the on-line system of the stock exchange
by entering into an agreement with the exchange.

13. Identify the method of floatation of new issues in the primary market, not taken up by 1
ISQAA SOLAR LTD.

A. Offer for sale B. Rights issue
C. E-IPO D. Offer through prospectus

14. “₹4500 crores would be raised by allotment of securities to a consortium of financial 1
institutions, instead of inviting subscription from the public by making a direct appeal to
investors to raise capital.’’ Identify the method of floatation of new issues in the primary
market being discussed above, which the company has decided to use.

A. Offer for sale B. Private placement

C. Right Issue D. Offer through Prospectus

15. Identify the reason which has made the firm raise funds from the institutional investors. 1

A. It helps to raise funds quickly B. It is not expensive

C. Both a & b D. None of the above.

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16. How much money was raised by the company through E-IPO’s 1

A.₹8000 crores B. ₹4500 crores

C. ₹20,000 crores D. ₹6000 crores

Read the following text and answer question No.17-20 on the basis of the same:
Yamuna Prasad, a small shopkeeper in Bikaner, Rajasthan used to sell the famous
‘Bhujia-Sev’. It was a quick selling product for locals and foreign tourists. His second
generation expanded the business and got ‘Yamuna Ki Bhujia’ registered with concerned
authorities. Gradually the brand offered a wide range of products to its customers like
namkeen, sweets, bakery items etc. However, ‘Bhujia-Sev’ remained the most popular
product of the brand creating maximum revenue.

‘Yamuna Ki Bhujia’ offered its products at competitive prices even while offering
customer services like gift packaging and free home delivery to become a household
name. Now it has virtually become a synonym for bhujia-sev in the market, so much so,
that people ask for ‘Yamuna Ki Bhujia’ instead of bhujia-sev. ‘Yamuna Ki Bhujia’ has
developed a strong distribution network in India and abroad by setting up retail outlets and
reaching out to the customer through internet selling.

Promotion of the brand had always been low profile, till the increase in competition
pushed it to hire the services of a professional advertising agency, VIGYAPAN PVT.LTD
for promoting the product. On the advice of VIGYAPAN PVT.LTD, ‘Yamuna Ki Bhujia’
has also worked upon managing public opinion by developing relations with the masses
through sponsoring cultural and sporting events, maintenance of public parks etc.

17. ‘His second generation expanded the business and got ‘Yamuna Ki Bhujia’ registered with 1
concerned authorities.’

With reference to the given text ‘Yamuna ki Bhujia’ is a _______________giving it a legal
protection against its use by anyone else.

A. Brand value B. Trademark

C. Trait mark D. Brand mark

18. ‘Yamuna Ki Bhujia’ offered its products at competitive prices even while offering 1
customer services like gift packaging and free home delivery to become a household
name.

Identify the factor affecting the element of marketing mix being discussed above.

A. Marketing methods used B. Objectives

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C. Extent of competition in the market D. product cost

19. ‘Yamuna Ki Bhujia’ has developed a strong distribution network in India and abroad by 1
setting up retail outlets and reaching out to the customer through internet selling.
Identify the decision related to the element of marketing mix being discussed above.

A. Storing and assorting products in order to create time utility

B. Regarding the channels or using intermediaries

C. Both a & b

D. One regarding branding, packaging and labelling

20. On the advice of VIGYAPAN PVT.LTD, ‘Yamuna Ki Bhujia’ has also worked upon managing 1
public opinion by developing relation with the masses through sponsoring cultural and
sporting events, maintenance of public parks etc. Name the department in the
organisation which is generally responsible for performing the above important task of
managing public opinion.

A. Marketing Department

B. A separate department created in the firm for the purpose

C. An outside agency

D. Any of the above.

21. Identify the level of management whose basic task is to integrate diverse elements and 3
coordinate the activities of different departments according to the overall objectives of
the organisation. State any two functions of the level of management identified.

22. Explain ‘Internship training’ and ‘vestibule training’ and classify them as on-the-job and 3
off-the-job methods of training.

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23. “Controlling is an indispensable function of management. Without controlling the best of 3
plans can go awry “. Do you agree? Explain any two reasons in support of your answer.

OR

“It is generally believed that measurement of performence should be done after the task
is completed.” Identify and explain the step in the process of the function of
management being discussed above and the step followed by the same in the process.

24. State the development functions of the Securities Exchange Board of India. 3

OR

State any three money market instruments.

25. ‘In an interview with a leading news channel, Mr. Rakesh Kwatra, CEO of ‘Get My Job’ has 4
suggested that the Companies which want more and more people to apply for jobs in
their organisation should make the process for applying for jobs easier and candidate
friendly.’

Name and explain the next two steps which follow the step, in the process of the
function of management being discussed above.

26. Pramod is a supervisor at ‘Shyam Breads and Biscuits Factory’. The factory produces 4
20,000 packets of bread and biscuits every day. As a supervisor Promod ensures that
work goes on smoothly and there is no interruption in production. He is a good leader
who gives orders only after consulting his subordinates, working out the policies with the
acceptance of the group. Identify and explain the leadership style being adopted by
Pramod

27 Briefly explain the positive and negative aspects of the type of communication which 4
arises out of the need of employees to exchange their views.

OR

Identity and explain the elements of directing mentioned below

A. Astha, a manager, has the ability to influence others to bring about a change in their
behaviour.
B. Neeraj, a managing director, declares share in the profits to the manager for their
contribution to increase profits of the company.

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28. Explain any four factors that can affect the working capital requirement of a company. 4

OR

Explain any four factors that affect the choice of capital structure of a company.

29. Dheeraj wants to start a business of selling N-95 masks after the outbreak of the global
pandemic of COVID-19. Due to the uncertain market conditions he wants to make a low
investment in fixed capital. Suggest how the decisions related to the choice of technique
and financing alternatives can help Dheeraj in ensuring a low investment in fixed capital
requirements. 4

30. Explain the following rights of consumers provided by Consumer Protection Act, 1986:- 4

(a) Right to Safety

(b) Right to Consumer Education

31. Explain 'Science, not rule of thumb', 'Harmony, not discord', and 'Development of each 6
and every person to his or her greatest efficiency and prosperity' as principles of
Scientific Management given by F.W.Taylor.

32. “Planning is worth the huge costs involved?” Do you agree? Explain any four reasons in 6
support of your answer.

OR

“If the project is important then more alternatives should be generated and thoroughly
discussed amongst the members of the organisation.” Identify and explain the step in the
process of planning being discussed above. Also explain the remaining steps which will
have to be carried out to complete the process.

33. An important difference between S&M Ltd and most other companies is that instead of 6
operating as one large corporation it operates as 180 smaller companies each focused on
a specific product and area, implying selective dispersal of authority, recognising the
decision makers need for autonomy, as decision making authority is pushed down the
chain of command. It enables the company to maintain short lines of communication
with customers and employees, and accelerate the development of talent. Identify the
philosophy that is being followed by S&M Ltd. through which it is dividing the decision-

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making responsibilities among the hierarchical levels. State any five points of importance
of the philosophy identified.

34. ‘Advertising’ and ‘Personal selling’ both are communication tools used by the marketers 6
to promote their products. Yet they differ in their approach. Differentiate between the
two by giving any six points.

OR

“The elements of marketing mix are popularly known as 4 P’s of marketing.” Briefly
explain these elements.

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