PSEB 12th Model Test Paper 2023 Business Studies

CLASS XII
SUBJECT : BUSINESS STUDIES-II
(COMMERCE AND HUMANITIES GROUP)
Time : 3 Hrs Maximum Marks : 80
Note : 1. All the questions are compulsory.
2. There are total 23 questions in the question paper.
3. The question paper has 3 sections i.e. A, B and C.
4. Section A : It has Question 1 which consists of 30 sub-parts as Multiple Choice Questions or
True/False Statements and each sub-part carries one mark.
5. Section B : It has Question 2 to 16, each carrying 2 marks. Answer each question in 5-10 lines.
6. Section C : It has Question 17 to 23, each carrying 4 marks. Attempt any 5 questions from this
section. Answer each question in 15-20 lines.
Section-A
Note : All the questions are compulsory. Each questions carries 1 mark.
I. Objective Type Questions
(i) Management is ………………
(a) An exact science (b) An inexact science
(c) A natural science (d) None of these
(ii) As a management expert, Henry Fayol concentrated on ………….. .
(a) Financial Management (b) General Management
(c) Technical Management (d) Scientific Management
(iiii) Functions of management are independent of one another. (True/False)
(iv) If more than one boss give orders to an employee, which principle of management is
violated ?
(a) Unity of Command (b) Unity of Direction
(c) Principle of Discipline (d) Principle of Scalar chain
(v) Scientific management is based on liberal rules. (True/False)
(vi) When was new economic policy introduced in India ?
(a) Feb. 1990 (b) July 1991
(c) Aug. 1992 (d) Jan. 1991.
(vii) Demonetisation is not helpful in checking the circulation of counterfeit currency.
(viii) Which of the following is a feature of planning ?
(a) Universal (b) Continuous Process
(c) Both the above (d) None of these
(ix) Budgets are standing plans. (True/False)
(x) The cost of which type of organizational structure is high ?
(a) Divisional structure (b) Functional structure
(c) Both (a) and (b) (d) Can not be determined

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(xi) It is easy to fix responsibility under formal organization. (True/False)
(xii) Which of the following is a negative process ?
(a) Training (b) Development
(c) Recruitment (d) Selection
(xiii) Delegation increases the work load of the subordinate. (True/False)
(xuv) The main objective of directing is to :
(a) Improve organisational efficiency (b) Maintain discipline
(c) Enforce control (d) All the above
(xv) External sources of recruitment create dissatisfaction among existing staff. (True/False)
(xvi) The highest level needs in the hierarchy of human needs given by Maslow is :
(a) Physiological needs (b) Social needs
(c) Esteem needs (d) Self actualization needs
(xvii) In communication, noise refers to a very loud sound. (True/False)
(xviii) Planning is meaningless without controlling and controlling is directionless without
planning. It means that :
(a) Planning and controlling are closely related.
(b) Planning and controlling are interdependent.
(c) Both (a) and (b)
(d) None of these.
(xix) Action is the essence of control. (True/False)
(xx) Co-ordination is known as :
(a) Essence of management (b) Nervous system of organsation
(c) Both (a) and (b) (d) None of these.
(xxi) Co-ordination is a group effort to achieve common objectives. (True/False)
(xxii) Working Capital management is :
(a) An investment decision (b) A short term investment decision
(c) A long term investment decision (d) None of these
(xxiii) If an enterprise has sufficient cash flow, then it prefer to obtain more debt. (True/False)
(xxiv) The main objective behind setting-up SEBI was to promote the development of Indian
economy. (True/False)
(xxv) A company wants to raise capital by issue of equity shares worth Rs. 1000 crore. From
which market will it raise funds ?
(a) Primary market
(b) Secondary market
(c) Both Primary market and secondary market
(d) None of these
(xxvi) The process of marketing comes to an end as soon as the product is sold. (True/False)
(xxvii) Bata, a shoe manufacturing company sells its products directly to the consumers through its
showrooms. This is an example of which of the following ?
(a) Three level channel (b) Two level channel
(c) One level channel (d) Zero level channel

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(xxviii) Packaging is known as silent salesman. (True/False)
(xxix) A consumer purchased a washing machine which caused an electric shock while being used.
Which of the following rights can that consumer exercise ?
(a) Right to Consumer education (b) Right to Information
(c) Right to be heared (d) Right to Safety
(xxx) A consumer can file a consumer complaint directly in the Supreme Court of India.
30 x 1 = 30
Section-B
Note : All the questions are compulsory. Each questions carries 2 marks.
2. ‘Management is a process’. Comment.
3. Briefly explain Gang Plank.
4. What is mental revolution ?
5. What is meant by demonetisation ?
6. Explain essentional features of a good plan.
7. Define delegation.
8. What is meant by training ?
9. Are human resource management and staffing the same concepts ?
10. What are the semantic barriers to effective communication ?
11. What is meant by budgetary control ?
12. Give any two points of difference between co-ordination and co-operation ?
13. What are financial decisions ?
14. Give two points of difference between primary market and secondary market.
15. Explain in brief indirect channels of distribution.
16. Write any two responsibility of a consumer.
15 x 2 = 30
Section-C
Note : Attempt any five questions. Each question carries 4 marks.
17. Discuss any four features/nature of principles of management.
18. What is on the job training ? Discuss any four common techniques of on the job training
method.
19. What is motivation ? Explain its types.
20. Discuss any four factors affecting working capital requirements.
21. Discuss in brief any four regulatory functions of SEBI.
22. Write a brief note on direct channel of distribution.
23. Write any four rights of a consumer.
5 x 4 = 20