ISC Class 12 Competency Based Questions (CBQ) Business Studies

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PREFACE

With a growing emphasis on competency-based education globally, the educational landscape
in India has also steered towards high-quality learning experiences that allow learners to
incorporate critical thinking and problem-solving approaches. This approach goes beyond rote
memorisation and focuses on developing the skills and knowledge that students need to apply
in their real-world scenarios.
The Council for the Indian School Certificate Examinations (CISCE), as a national-level
progressive examination board, has taken several steps to infuse competency-based education
in CISCE schools through teacher capacity-building on item development for competency-
based assessments and the incorporation of competency-focused questions at the ICSE and ISC
levels from the examination year 2024.
To further facilitate the adoption of competency-based assessment practices in schools and to
support teachers and students towards the preparation for attempting higher-order thinking
questions in future board examinations, Item Banks of Competency-Focused Practice
Questions for selected subjects at the ICSE and ISC levels have been developed. This Item
Bank consists of a rich variety of questions, both objective and subjective in categories, aimed
at enhancing the subject-specific critical and analytical thinking skills of the students.
In this Item Bank, each question is accompanied by the topic and cognitive learning domain/s
that it intends to capture. The cognitive domains reflected in these questions include
understanding, analysis, application, evaluation and creativity, along with some questions of
the higher-order recall domain. The Answer Key at the end presents the possible answers to a
given question, but it is neither limiting nor exhaustive.
These practice questions are also meant to serve as teacher resources for classroom assignments
and as samplers to develop their own repository of competency-focused questions. Apart from
offering a good practice of higher-order thinking skills, engaging with these questions would
allow students to gauge their own subject competencies and use these assessments for learning
to develop individual learning pathways.
During the development of this Item Bank, a large pool of questions was prepared by a team
of experienced CISCE teachers. The questions that were finalised by the internal and external
reviewers as being higher-order competency-focused questions have been collated in this item
bank.
I acknowledge and appreciate all the ICSE and the ISC subject matter experts who have
contributed to the development and review of these high-quality competency-focused questions
for CISCE students.
We are hopeful that teachers and students will utilise these questions to support their
teaching-learning processes.

August 2024 Dr. Joseph Emmanuel
Chief Executive & Secretary
CISCE

Business Studies ISC-Class XII

Table of Contents

S.No. Types of Questions Page Nos.

I. Multiple Choice Questions (MCQs) 1-7

II. Assertion-Reason Questions 8-9

III. Very Short Answer Questions 10-13

IV. Fill in the Blanks/True or False 14-16

V. Short Answer Questions 17-22

VI. Long Answer Questions 23-27

Answer Key 28-37

ISC Competency-Focused Practice Questions

Business Studies ISC-Class XII

COMPETENCY-FOCUSED PRACTICE QUESTIONS

ISC-CLASS XII

Business Studies

I: Multiple Choice Questions (1 Mark Each)

S.No. Questions

1. [Human Resource Management]
Rahul Vice President (V.P.) of Governance, Risk and Compliance Cell at Speed Infotech
Solutions, had organised a training session for his team to guide them about the amendments in
the company’s operating procedures. The training programme will enable his team members to
be equipped with the changes and therefore be more vigilant while performing their office duties.
Identify the type of training provided to the subordinates in the above scenario.

(a) Job Training
(b) Remedial Training
(c) Versatility Training
(d) Refresher Training (Application)

2. [Human Resource Management]
A publishing company in the United States (US) has hired data entry operators to work remotely.
These operators have flexible online schedules and work for three hours on a regular basis which
is typically less than the number of working hours of the company’s full-time employees.
Choose the option that BEST describes the emerging trend in human resources in the above case.

(a) Business Process Outsourcing
(b)Virtual Team
(c) Flexitime
(d) Permanent Part-time
(Application)

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S.No. Questions

3. [Human Resource Management]
Which one of the following is NOT an advantage of the piece-rate system of wage payment?

(a) The easy determination of labour cost per unit.
(b) Determining training needs for inefficient workers.
(c) Securing the willing co-operation of workers for the installation of advanced machines to
increase productivity.
(d) Increasing the solidarity of workers, as it provides a premium on efficiency.
(Understanding)

4. [Human Resource Management]
Shivam, a Senior Manager at a leading software development company, has selected 4 members
from his team to travel with him to the overseas client site for product installation. He calls for a
team meeting & explains the reasons for his selection.

Where does Shivam's leadership style stand in the Leadership continuum spectrum?

(a) The manager sells the decision.
(b) The manager presents ideas and invites questions.
(c) The manager makes the decision and announces it.
(d) The manager presents a tentative decision subject to change. (Analysis)

5. [Business Size and Finance]
Kriday and Kartik are co-workers in a chemical factory owned by Kartik’s father. In order to raise
capital for his business venture, Kartik made several pitches about his idea on social media sites.
The project involved several groups of individuals making small contributions to this venture.
Kriday is one among them who has invested.

Identify the funding method used in the above case.

(a) Peer-to-peer funding
(b) Crowdfunding
(c) Trade credit
(d) Loans (Application)

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S.No. Questions

6. [Business Communication and Correspondence]
As per mandate given to the National Commission for Scheduled Castes under Article 338 of the
Constitution of India, it is the duty of the Commission to present to the President annually & at
other times as the Commission may deem fit, reports upon the working of the Constitutional
safeguards of the Scheduled Castes. The reports may include recommendation for the measures
required to be taken by the Union and the States for the effective implementation of those
safeguards and other measures for the protection, welfare and socio-economic development of
the Scheduled Castes.

Source:https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2006663

Which one of the following type of reports does NOT conform to the above context?

(a) Routine Report
(b) Special Report
(c) Interpretative Report
(d) Statutory Report (Application)

7. [Human Resource Management]
Which of the following, usually provides the facility of withdrawals of funds by an employee, in
order to meet unforeseen personal expenses?

(a) National Pension System (NPS)
(b) Employees’ Provident Fund (EPF)
(c) Gratuity
(d) Voluntary retirement (Understanding)

8. [Human Resource Management]
At ABC Company, Emily, a marketing manager, consistently demonstrates exceptional creativity
and leadership, surpassing expectations in her role. The company conducts a comprehensive
assessment of her abilities, identifying her as a promising candidate for future leadership roles
through an appraisal process.

Which type of appraisal has been conducted in the above situation?

(a) Merit Grading
(b) 3600 Appraisal
(c) Potential Appraisal
(d) Performance Appraisal (Application)

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S.No. Questions

9. [Human Resource Management]
In a reflection of the growing demand for skilled engineers in the tech industry, India has seen an
increase in the number of undergraduate engineering students securing training with monthly
stipends of ₹ 1 lakh or more from giant companies like Amazon, Google, Intuit India, Microsoft,
Palo Alto, and Goldman Sachs.
Source(edited): https://www.msn.com/en-in/autos/news/rs-1-lakh-ug-tech
Which ‘off-the-job method’ of training is discussed in the above scenario?
(a) Vestibule Training
(b) Internship Training
(c) Classroom Training
(d) Apprenticeship Training (Application)

10. [Human Resource Management]
Company Z adopted a targeted promotion policy, which involved selective sharing of promotion
details with designated decision-makers thereby limiting participation to a chosen few.
What method of promotion policy has been adopted by the company?

(a) Open policy
(b) Closed policy
(c) Upgradation
(d) Dry promotion (Application)

11. [Human Resource Management]
During a routine audit in ABC Corporation, discrepancies emerged in the procurement records.
The auditors uncovered Hritik, a procurement officer's collaboration with a supplier to inflate
prices and split excess payments. Subsequently, an internal investigation confirmed his
involvement in the dishonest conduct. Hritik's employment at ABC Corporation was, thus
terminated.
What type of termination did Hritik face as a result of his involvement in dishonest conduct?

(a) Layoff
(b) Resignation
(c) Dismissal
(d) Suspension (Application)

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S.No. Questions

12. [Business Communication and Correspondence]

Identify the method of communication expressed in the above picture.

(a) Oral Communication
(b) Visual Communication
(c) Written Communication
(d) Gestural Communication
(Application)

13. [Business Communication and Correspondence]

Which method of communication is expressed in the above picture?

(a) Oral Communication
(b) Visual Communication
(c) Written Communication
(d) Gestural Communication
(Application)

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S.No. Questions

14. [Human Resource Management]
In an email to staff, Jim Ryan, Sony Interactive Entertainment's Chief Executive Officer (CEO),
said the job cuts were the result of discussions about “the evolving economic landscape, changes
in the way we develop, distribute, and launch products, and ensuring our organisation is future
ready in this rapidly changing industry.”
The company pledged that “affected employees will receive support, including severance
benefits.” Ryan said.

Source(edited):https://www.forbes.com/sites/jamesfarrell/2024/02/27/sony-laying-off-900-
playstation-employees-in-latest-gaming-industry-cuts/?sh=688485541d3f&utm_source=newsl

Identify the type of staff separation being referred to in the above email, sent by Jim Ryan.
(a) Layoff
(b) Dismissal
(c) Suspension
(d) Retrenchment (Analysis)

15. [Business Communication and Correspondence]
Employees are sometimes reluctant to share their ideas and opinions, in their organisations
because they fear being judged. They don’t seem to realise that critical review is essential for
growth.
Identify the barrier to communication being addressed in the above statement.

(a) Social Barrier
(b) Physical Barrier
(c) Organisational Barrier
(d) Socio-Psychological Barrier (Understanding)

16. [Business Regulators and Intermediaries]
Which one of the following is NOT a role of Food Safety and Standards Authority of India
(FSSAI)?

(a) Setting guidelines for accreditation of laboratories.
(b) Designing adulteration free food preparation techniques.
(c) Framing of regulations to set the standards and guidelines in relation to articles of food.
(d) Laying down mechanisms and guidelines for accreditation of certification bodies related to
food business.
(Recall & Understanding)

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S.No. Questions

17. [Human Resource Management]
Mr. Hill, a High School teacher was appreciated by many students, as his focus was on team
building, encouraging creative thinking, and paying attention to the students’ personal problems
on an individual basis. However, during a class test, most students did not score good marks. The
management felt that a major objective of teaching was not achieved.

Where will Mr. Hill be placed on Blake and Mouton’s managerial grid?

(a) 1,9
(b) 5,5
(c) 9,1
(d) 9,9
(Application)

18. [Human Resource Management]
Ms. Arti, a teacher at a government school, has reached the age of superannuation. Which of the
following benefits can she claim from her school?
(i) National Pension Scheme (NPS)
(ii) Gratuity
(iii) Encashment of leave
(iv) Group insurance
Choose the correct option based on the above situation.
(a) Only (ii).
(b) Only (iii).
(c) Both (i) and (iv).
(d) Both (ii) and (iii). (Application)

19. [Human Resource Management]
Which of the following, is NOT an assumption of Maslow’s theory of the hierarchy of human
needs?

(i) A satisfied need does not act as a motivator.
(ii) Human needs may not follow a hierarchical order.
(iii) An individual’s behaviour at any time is guided by multiplicity of motive.
(iv) An individual will attempt to satisfy one category of need at one time.
Choose the correct option based on the above situation.

(a) Both (i) and (ii).
(b) Both (ii) and (iii).
(c) Both (iii) and (iv).
(d) Both (i) and (iv). (Analysis)

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II. Assertion-Reason Questions (1 Mark Each)

The questions in this section have two statements marked Assertion and Reason. Read both the
statements carefully and choose the correct option.

S.No. Questions

20. [Business Communication and Correspondence]
Assertion (A): A video conference is a virtual meeting between people at different
geographical locations.
Reason (R): A video conference combines audio and video media.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, and R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true. (Analysis)

21. [Human Resource Management]
Assertion (A): Regular participation in refresher training programs is essential for
maintaining and improving employees' skills and knowledge.
Reason (R): Refresher training provides employees with opportunities to meet colleagues
and share best practices, fostering a sense of camaraderie and teamwork within the
organisation.

(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
(Analysis)
22. [Human Resource Management]
Assertion (A): The piece rate system of remuneration compensates employees based on
their individual output, often measured by the number of units produced or tasks completed.
Reason (R): Piece rate systems encourage employees to focus solely on quantity rather than
quality, potentially leading to a decrease in the standard of the product.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true. (Analysis)

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S.No. Questions

23. [Business Communication and Correspondence]
Assertion (A): Pictorial presentation in visual communication helps in better
understanding.
Reason (R): Pictorial presentation can convert simple information into complex visuals,
such as charts, graphs, and diagrams.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true. (Analysis)

24. [Globalisation and Recent Trends in Business]
Assertion (A): Companies willing to expand have got access to new markets across the
world due to globalisation thus resulting in intense competition.
Reason (R): Globalisation enables companies to enter new markets beyond their domestic
borders. As a result, companies from different countries compete directly with each other
in various markets.

(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true. (Analysis)

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III: Very Short Answer Questions (1 Mark Each)

S.No. Questions

25. [Human Resource Management]
The Union government has reappointed Michael D Patra as Deputy Governor of the
Reserve Bank of India (RBI) for a year, effective January 15.
This is the second extension given by the Cabinet’s Appointments Committee to Patra.
On January 15 last year, too, he was re-appointed as Deputy Governor for a year.

Source:https://indianexpress.com/article/business/banking-and-finance/michael-d-
patra-re-appointed-as-rbi-deputy-governor-for-1-year-9107213/

Identify the type & source of recruitment used above. (Application)

26. [Human Resource Management]
Campaigns in Africa to stop polio and other diseases have a more stable, better-motivated
workforce thanks to the World Health Organisation (WHO)’s collaboration with
countries and partners to pay frontline health workers through their mobile phones
instead of in cash.
“Over 80 percent of workers are saying they prefer the digital payments.” said Ahmed
Hamani Djibo, head of WHO’s Digital Finance Team.

Source(edited):https://www.who.int/news/item/09-02-2024-digital-payments-to-health-
workers-boost-retention--motivation--and-impact

What type of human needs are being met in the above scenario, as per Maslow’s theory
of the hierarchy of needs? (Analysis)

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S.No. Questions

27. [Human Resource Management]

Source(edited):https://www.wecreateproblems.com/blog/20-companies-that-have-a-
unique-hiring-process

Identify the process depicted in the above picture.
(Understanding)

28. [Business Regulators and Intermediaries]
Who are merchant bankers? (Understanding)

29. [Human Resource Management]
Differentiate between performance appraisal and potential appraisal on the basis of their
objectives. (Analysis)

30. [Business Communication and Correspondence]
The kitchen of a restaurant caught fire leading to multiple explosions of gas cylinders.
The restaurant manager immediately advised the diners to go out from safety doors. Some
of the diners could not hear the instructions clearly, so ran towards the kitchen.
Name the barrier to communication in the above case. (Application)

31. [Business Communication and Correspondence]
Viking Cruises, a luxury tour company offers exclusive experiences at a premium price.
For people opting for these tours, which need would be satisfied as per Maslow’s
Hierarchy of Human Needs?
(Understanding)

32. [Business Communication and Correspondence]
Comment on any one use of electronic mail that indicates its portability. (Evaluate)

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S.No. Questions

33. [Human Resource Management]
Mr. Vinod gave his resignation letter to the Human Resources (HR) department citing
continuous friction between him and his senior Mr. Advin. Mr. Vinod being an efficient
employee, was called by the HR manager to persuade him to withdraw his resignation.
Simultaneously, the cause and remedial action to stop friction in the office were also
discussed with Mr. Advin.

Identify this feature of Human Resource Management (HRM) seen in the above case.
(Application)

34. [Business Size and Finance]

Source: https://www.wallstreetmojo.com/trade-credit/

Identify the source of finance depicted in the above infographic. (Application)

35. [Business Size and Finance]
Equity shares: dividends
Debentures: ________ (Understanding)

36. [Business Size and Finance]
Venture capitalist: support scalable start-ups
___________: support & mentors entrepreneurship (Understanding)

37. [Globalisation and Recent Trends in Business]
Max, an avid bookworm, found a new way to declutter his shelves and earn some extra
cash by selling his gently used books on an online platform like BookMooch. Through
this platform, he connects with fellow book lovers worldwide, exchanging books and
building a community of literary enthusiasts.

Which online mode of conducting business is used by Max? (Application)

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S.No. Questions

38. [Globalisation and Recent Trends in Business]
JK Corporation enhanced its operations by engaging SparkleClean Solutions, a local
cleaning company, for maintenance services.

Name the three parties to the outsourcing arrangement in the above case.
(Application)

39. [Business Regulators and Intermediaries]
ABC Laboratory started food testing services, after successfully attaining accreditation,
showcasing its unwavering dedication to quality assurance.

Name the authority that gave accreditation to ABC laboratory. (Application)

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IV. Fill in the Blanks/True or False (1 Mark Each)

S.No. Questions

40. [Human Resource Management]
________ style of leadership does not allow much room for employee decision-making.
(Understanding)

41. [Business Communication and Correspondence]
The __________ report does not contain recommendations for action to be taken.
(Understanding)

42. [Business Communication and Correspondence]
Mr. Shaikh wrote a letter of _______ to ABC Ltd. seeking information on the availability of
50 water coolers that he wished to procure for his firm. (Understanding)
43. [Business Regulators and Intermediaries]
________ is the regulator for P2P lending platforms in India. (Recall)

44. [Human Resource Management]
Human resource management's ________ significance lies in driving productivity and
economic growth by optimising the use of labour in the country, developing talent, and
aligning workforce capabilities with broader development goals.
(Understanding)

45. [Human Resource Management]
In Herzberg's Two-Factor Theory, having well-lit workspaces is an example of a ________
factor. (Application)

46. [Human Resource Management]
In a workplace that embraces freedom of expression, employees feel empowered to voice their
thoughts and ideas without fear of retribution. This freedom fosters a sense of belonging,
creating an environment where individuals feel valued and heard.

The above sentences represent morale ________. (Application)

47. [Business Size and Finance]
Vandana Ltd. offers ________ shares in its capital structure to ensure steady dividends for
investors looking for safety of investment. (Understanding)

48. [Human Resource Management]
_______ is a process of elevating the employee to a higher grade, without increasing his/her
status or authority. (Understanding)

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S.No. Questions

49. [Human Resource Management]
By granting ________ leave, the company allows its employee who is the father of a new-
born baby to share childcare responsibilities with the mother. (Application)

State whether True or False from Q.No. 50 to Q.No. 59.

50. [Human Resource Management]
A job description perfectly depicts a job. (Understanding)

51. [Human Resource Management]
Manpower planning facilitates anticipation & reduction of costs in an organisation.

(Understanding)

52. [Human Resource Management]
Payroll is a document showing all the details of the wages or salary paid to an employee.
(Understanding)

53. [Business Communication and Correspondence]
Postscripts may include raw data, evidence, technical data, maps, diagrams, tables, etc. in a
report. (Understanding)

54. [Business Communication and Correspondence]
An appendix is used to make a final persuasive pitch or offer an additional incentive to a
potential customer while drafting a business letter. (Understanding)

55. [Human Resource Management]
A Company is at the preliminary screening stage of the selection process when it uses an
Artificial Intelligence (AI) tool to segregate job applicants into eligible and ineligible
candidates. (Application)

56. [Globalisation and Recent Trends in Business]
Globalisation leads to isolationism and reduces economic and political power concentration.
(Understanding)

57. [Globalisation and Recent Trends in Business]
Trade credit offered by one business firm to another business firm, is an example of Business
to Business (B2B).
(Understanding)

58. [Business Communication and Correspondence]
A formal letter expressing the willingness of an employee to leave the organisation is called
a resignation letter. (Recall)

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S.No. Questions

59. [Business Communication and Correspondence]
A table of contents is a section of a report that enables readers to find the subject, heading,
and sub-heading and outlines the topics of the report. (Understanding)

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V. Short Answer Questions (4 Marks Each)

S.No. Questions
60. [Human Resource Management]
Tata Consultancy Services’ Chief Operating Officer (TCS COO) cited work culture as
well as security issues for giving the strict deadline. He said working from home made
employees and employers vulnerable. "We are exercising patience but have taken a
principled stand that employees have to get back to offices." he said. "We have sent
employees the final communication on this and if they do not, there will be consequences
to face.”

Source:https://timesofindia.indiatimes.com/gadgets-news/tcs-coo-sets-final-deadline-for-
employees-to-return-to-office/articleshow/107611018.cms

(a) Identify and explain the emerging trend in human resources, highlighted by the COO
of TCS, that has raised concerns regarding work culture and security issues?

(b) Propose and discuss an alternative approach that TCS could adopt to mitigate the
potential demoralisation caused by the "return to office" policy. (Application)

61. [Business Regulators and Intermediaries]
The Times of India, dated February 15, 2024 reported:
You may soon get more time to read the fine print of your insurance policy and cancel it
if it doesn't suit you. Insurance regulator IRDAI has proposed to extend the "free look"
period for policies from 15 days to a month.

(a) How does the proposal by the Insurance Regulatory and Development Authority of
India (IRDAI) to extend the "free-look" period for insurance policies from 15 days to a
month classify within its regulatory functions, as outlined in the passage?
(Analysis)
(b) Imagine you represent an insurance company. Design any one measure you would
introduce to adapt to customer needs in today’s dynamic world. (Create)

62. [Human Resource Management]
Chanda Kochar is a big believer in having hands-on experience as it lets individuals test
the execution of their decisions and better understand the thought process involved.

Source:https://www.scribd.com/document/486889181/Chanda-Kochhar-Leadership-
Assignment-docx

Identify and explain the leadership style of Chanda Kochar. Justify the reason given by
Chanda Kochar for adopting the above leadership style. (Application)

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S.No. Questions
63. [Globalisation and Recent Trends in Business]
Global memory and data storage major Micron Technology on Thursday said the first
phase of its plant in Gujarat’s Sanand will become operational in early 2025.
It has already started construction of the plant by roping Tata Projects, and the hiring
process has also begun, the US-based company’s president and chief executive Sanjay
Mehrotra said at the Vibrant Gujarat Global Summit here.
Mehrotra said the company will ramp up capacity over time as per global demand.
“Government support will help fund the project and also facilitate access to essential
semiconductor infrastructure and resources, which will drive innovation and enhance
local talent development,” he said.
“We are hopeful this investment will help catalyse other investments in the sector,
indigenous manufacturing capability, encourage innovation and support broader job
creation,” Mehrotra said.
The company has already hired 200 people who are being trained at facilities in Malaysia
and Mohali, he said, adding that after the completion of both phases, it will create 5,000
jobs at the site.

Source:
https://indianexpress.com/article/business/indian-manufacturing-unit-operational-early-
2025-micron-9105475/

Identify instances/phrases in the above context to bring out any two ways in which
globalisation is transforming business, an opportunity and a threat it creates.
(Application)

64. [Human Resource Management]
Amazon runs multiple employee training programs under the Amazon Technical Academy
to prepare nontechnical employees to move into software engineering careers. These
training programs will help employees feel confident and take on
different roles at Amazon and also in other industries. One such program is
Associate2Tech, where they will train front-line employees to move into technical roles,
even if they have no previous IT experience.
Source:https://www.togetherplatform.com/blog/best-training-and-development-programs

Name & explain:

(a) the type of training given in Associate2Tech program.
(b) the method of training used by Amazon. (Application)

65. [Business Regulators and Intermediaries]
"We are neither hawks nor doves, we are owls."
- Raghuram Rajan, former Governor of the Reserve Bank of India (RBI).

The above statement emphasises the importance of the role played by The Reserve Bank
of India. Explain any two such roles. (Analysis)

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S.No. Questions
66. [Globalisation and Recent Trends in Business]
Surabhi works as Area Manager (Sales) with Allen Leather Company Pvt. Ltd. that
manufactures and exports handmade leather crafts such as handbags, belts, wallets, etc. to
retailers abroad. Surabhi’s role includes securing online orders through social networking
sites. As a side business, which her Company is aware of and has approved of in their
terms of contract with Surabhi in a non-competition clause, Surabhi sells her handmade
knitted bags through Facebook Marketplace to consumers across the globe.

Identify the two forms of e-business in the above context and justify the answer.
. (Application & Evaluate)

67. [Human Resource Management]
Draw the managerial grid. Out of the possible combinations, name and explain any one
extreme combination. (Understanding)

68. [Business Size and Finance]
Fundraising involves the process of sourcing financial resources through various channels,
enabling organisations to meet their financial needs and pursue their objectives effectively.
In the realm of fundraising, provide a brief overview of equity and preference shares.
(Understanding)

69. [Human Resource Management]
Scenario 1: A customer service representative is given the authority to make decisions
regarding refunds and discounts for dissatisfied customers.

Scenario 2: A customer service representative is assigned to additionally respond to live
chat inquiries, handling email correspondence, and conducting customer satisfaction
surveys.

(a) Identify the distinct approaches demonstrated in each scenario regarding the
(empowerment and broadening of) job responsibilities of customer service representatives.
(Application)
(b) In what way, does the job satisfaction experienced in Scenario 1 differ from Scenario
2? (Analysis)
(c) Identify the level at which the customer service representative in Scenario 1 finds
satisfaction as per Maslow's Hierarchy of Human Needs. Justify the answer.
(Application)

ISC Competency-Focused Practice Questions 19

Business Studies ISC-Class XII

S.No. Questions
70. [Human Resource Management]
Case 1
Joseph and Sons are selecting new employees for their new branch.
Sam has applied for a job in the confidential department. While getting the employment
reviews for him, from his previous employer, the HR manager encounters unsettling
feedback.

Case 2
After completing the fitness assessment for the final shortlisted candidates, Victor and Neil
at a diagnostic centre, the HR manager uncovers health issues about both individuals.

With reference to Cases 1 and 2 given above, answer the questions that follow.

(a) Which stages of the selection process do Case 1 and Case 2 correspond with?
(b) How do these stages of the selection process benefit the organisation?
(Application)

71. [Human Resource Management]
In the picture given below:

(a) Identify how the staff is being procured in the aforementioned four instances.

(b) Identify the shared aspect among the four cases and mention any one advantage of this
aspect. (Analysis)

ISC Competency-Focused Practice Questions 20

Business Studies ISC-Class XII

S.No. Questions
72. [Business Size and Finance]
Rose, a sole proprietor is working towards the expansion of her business after having
completed 10 years of being an established entrepreneur. She does not intend to share
ownership of the enterprise. She enjoys a good reputation amongst the suppliers. The
finance manager brought to her notice some short-term financial issues in meeting
operating expenses.

With reference to the above situation, answer the questions that follow.

(a) Explain the short-term finance that Rose can source to resolve the issues she faces in
meeting operating expenses.
(b) Suggest any one way in which Rose can finance the plans to expand her business while
retaining ownership.
(Analysis)

73. [Human Resource Management]

With reference to the above situation, answer the questions that follow.

(a) Identify the method of staff appraisal depicted in the above image. (Analysis)
(b) How does the method of staff appraisal depicted above promote self-awareness and
self-evaluation? (Application)
(c) Why is the method of staff appraisal depicted above identified as a comprehensive
evaluation method? (Evaluate)

ISC Competency-Focused Practice Questions 21

Business Studies ISC-Class XII

S.No. Questions
74. [Business Communication and Correspondence]

Mr. Pai holds a Master of Business Administration (MBA) in finance and works at ABC
Ltd. While in casual conversation with Mr. Jacob, a client of ABC Ltd., he discovered a
likely vacancy in the finance department at Jacob Pvt. Ltd. Mr. Pai dropped off his biodata
at the reception of the company, thereby indicating his interest in any future opportunities
in the company.

With reference to the above situation, answer the questions that follow.

(a) Name the type of letter written by Mr. Pai.
(b) How will the receptionist classify this letter? Give one reason for your answer.
(c) What is a biodata? List any two professional details that may be disclosed in a biodata.
(Application & Understanding)

ISC Competency-Focused Practice Questions 22

Business Studies ISC-Class XII

VI: Long Answer Questions (8 Marks Each)

S.No. Questions

75. [Human Resource Management]
Mr. Verman senior executive, middle-aged was expecting a promotion for the past 4
years, which is due for him as he has been with the organisation since its inception. The
performance appraisal methods are changing every year, as HR manager is highly
curious and adventurous in testing many new methods. The middle-aged executives
cannot cope up with the upgradation of software related to performance appraisals. He
is sincere in his job, not very high-performing or low-performing. He accomplishes his
targets and has been loyal to the organisation. When every time his promotion is denied
based on performance rankings and his juniors move up the ladder, he felt cheated and
victimized. He curses and loath the system of performance appraisals and recently, his
behaviour is changing on the negative side, not cooperating with his superiors (once
juniors), absenteeism increasing and performance still going low.

Source(edited):https://www.coursehero.com/tutors-problems/Human-Resource-
Management/20251426-A-senior-Executive-middle-aged-was-expecting-promotion-
for-the-past-4/

With reference to the above situation, answer the questions that follow.

(a) Explain the shift in the relationship between the morale and productivity of
Mr. Verman with reference to morale productivity matrix. (Analysis)
(b) Identify any two flaws in the promotion policy of the organisation.
(Recall & Application)
(c) Briefly explain the merit grading system of performance appraisal. (Recall)

ISC Competency-Focused Practice Questions 23

Business Studies ISC-Class XII

S.No. Questions

76. [Globalisation and Recent Trends in Business]
Case Study:

The Client
We were approached by a California-based legal firm that wanted to enhance efficiency
and streamline productivity with a standardized model for drafting complaints, notices,
and discovery documents.

The Requirement
The client had a fully functional in-house team comprising the best paralegals. But due
to the sheer volume of cases, they needed additional support. The legal secretarial
support services we provided include -:

Drafting of complaints, civil case cover sheet, addendum, and summons.
Drafting notice of depositions.
Propounding discovery documents.
Drafting responses to discovery documents.

Source:https://www.outsource2india.com/legal-services/case-studies/legal-back-
office-services-to-california-based-client.asp

With reference to the above situation, answer the questions that follow.

(a) Identify the type of outsourcing mentioned in the above scenario. (Application)
(b) Identify the outsourcer. (Application)
(c) State any two ways in which the outsourcer benefits from outsourcing in the above
case. (Application)
(d) Clearly explain any one merit and demerit of outsourcing to the service provider in
the above case. (Analysis)

ISC Competency-Focused Practice Questions 24

Business Studies ISC-Class XII

S.No. Questions

77. [Human Resource Management]
Today's successful enterprises prioritise engaged human resources, making it the key
factor over technology, innovation, and strategy. People engagement is rooted in
corporate culture emphasising equity, empowerment, inclusion, skill enhancement,
diversity, and empathy. Leadership strategies encompass cross-functional
collaboration, mentorship, clear employee-centric communication, objectivity,
integrity, and transparency. Fostering unit-level ambassadorship, work-life balance,
trust, empowerment, and accountability results in high-performance teams and a strong
corporate culture. Building strong leaders translates to engaged teams and overall
corporate excellence” shared Amit Goenka, Managing Director & Chief Executive
Officer, Nisus Finance.

Source:https://economictimes.indiatimes.com/news/company/corporate
trends/building-vibrant-company-culture-boosting-employee-
engagement/articleshow/105471523.cms

(a) What factor of motivation does Amit Goenka's emphasis evoke, and how does it
underscore its relevance in fostering a thriving workplace for an employee?
(Application & Understanding)

(b) How do Amit Goenka's efforts to cultivate values such as equity, empowerment, and
inclusion in organisations correlate with different tiers of Maslow's hierarchy of needs
theory? (Analysis)

(c) If the described scenario is implemented within an organisation, it would align with
which category of the Morale Productivity Matrix?
(Application)

ISC Competency-Focused Practice Questions 25

Business Studies ISC-Class XII

S.No. Questions

78. [Human Resource Management]
Ashok Vaswani, the newly-appointed managing director and chief executive of Kotak
Mahindra Bank, announced some key leadership changes by elevating K V S Manian
as joint managing director and Shanti Ekambaram as the deputy managing director.
Both Manian and Ekambaram have been associated with the group for a long and are
whole-time directors.
The other appointments include Devang Gheewalla succeeding Jaimin Bhatt as the
group chief financial officer with effect from 1 April 2024. Bhatt is superannuating on
31 March 2024.
Milind Nagnur has been elevated as chief operating officer from 1 April 2024 but will
also continue to be the chief technology officer and will take additional responsibility
for bank operations, group technology architecture and cyber security functions.
Paul Parambi has been elevated as the group chief risk officer effective 1 March 2024,
thereby extending his role from the bank to all group companies.
Last November, the bank’s founder and vice-chairman Uday Kotak announced his
resignation from executive positions at the bank effective end-December, which
though was much before his RBI-mandated retirement, citing personal reasons.

Source(edited):https://timesofindia.indiatimes.com/gadgets-news/metas-motivation-
mantra-for-employees-happy-hours-snacks-and-more/articleshow/103786563.cms

(a) Identify & explain the various types of staff separation incidents referred to in the
above case. (Application & Understanding)

(b) Which aspect of designing a job highlights “additional responsibility” in Milind
Nagnur’s new role? Justify the answer. (Analysis)
(c) Discuss the concept of recruitment strategy applied by Kotak Mahindra Bank while
making leadership changes vis-a-vis Manian and Ekambaram.

(Application & Analysis)

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Business Studies ISC-Class XII

S.No. Questions

79. [Human Resource Management]
Meta, formerly known as Facebook, is bringing back perks for employees after recent
layoffs. The company's headquarters in Menlo Park, California is rehiring some of the
previously laid-off workers and requiring employees to come to the office at least three
days a week at their convenient time but must be present in the office during core
working hours. Pre-pandemic benefits happy hours, snacks, and laundry services are
resuming, although some employees have noted that the perks are not as attractive as
before. Meta is prioritising rehiring experienced engineers, but they may take on less
senior roles and receive lower pay.

Source(edited):https://timesofindia.indiatimes.com/gadgets-news/metas-motivation-
mantra-for-employees-happy-hours-snacks-and-more/articleshow/103786563.cms

(a) By resuming employee benefits such as happy hours, snacks, and laundry services,
what is Meta trying to impact positively? (Application)
(b) What emerging trend in human resources is Meta trying to adopt in the above
context? (Understanding)
(c) What is meant by layoff? (Recall)
(d) Identify and explain the type and source of recruitment referred to in the above
context. (Recall & Application)

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Business Studies ISC-Class XII

ANSWER KEY

Q.No. Expected Answers

1. (d) Refresher Training

2. (d) Permanent Part-time

3. (d) Increasing the solidarity of workers, as it provides a premium on efficiency.

4. (a) The manager sells the decision.

5. (b) Crowdfunding

6. (b) Special Report

7. (b) Employees’ Provident Fund (EPF)

8. (c) Potential Appraisal

9. (b) Internship Training

10. (b) Closed policy

11. (c) Dismissal

12. (d) Gestural Communication

13. (b) Visual Communication

14. (a) Layoff

15. (d) Socio-Psychological Barrier

16. (b) Designing adulteration-free food preparation techniques.

17. (a) 1,9

18. (d) Both (ii) and (iii).

19. (b) Both (ii) and (iii).

20. (b) A and R are true, but R is not the correct explanation of A.

ISC Competency-Focused Practice Questions 28

Business Studies ISC-Class XII

Q.No. Expected Answers

21. (b) A and R are true, but R is not the correct explanation of A.
(Explanation: While R highlights one of the benefits of refresher training—networking
and fostering teamwork—it does not fully explain why regular participation in such
programs is essential for maintaining and improving employees' skills and knowledge.
The primary reason for the importance of refresher training lies in ensuring employees
stay updated on industry developments and maintain proficiency in their roles.)

22. (b) A and R are true, but R is not the correct explanation of A.

23. (c) A is true, and R is false.
(Reason is a false statement. Pictorial presentation can convert complex information into
simple visuals, such as charts, graphs, and diagrams.)

24. (a) Both A and R are true, and R is the correct explanation for A.

25. Type of recruitment: Ex-employees
Source of recruitment: Internal recruitment

26. Safety Needs

27. Staff Selection process

28. Merchant Bankers are the financial institutions which assist in raising capital through the
issue of shares, debentures, and other securities.

29. Performance appraisal is done to decide incentive pay, training needs, etc., whereas
potential appraisal is done to decide future job assignments.

30. Physical Barrier

31. Esteem Need

32. • Emails can be accessed from anywhere with an internet connection, making them highly
portable and convenient.
• Emails can be accessed on various devices such as computers, smartphones, and tablets,
regardless of the operating system or platform.
• Additionally, most email services offer synchronisation across devices, ensuring that
changes made on one device are reflected on others almost instantly.

33. People-oriented
(reason: HRM is concerned with employees as an individual as well as a group.)

34. Trade Credit

35. Interest

ISC Competency-Focused Practice Questions 29

Business Studies ISC-Class XII

Q.No. Expected Answers

36. Angel Investors

37. C2C

38. Outsourcer - JK corporation, Outsourced & Service provider

39. Food Safety and Standards Authority of India (FSSAI)

40. Autocratic

41. Informational

42. enquiry

43. RBI

44. national

45. hygiene

46. Stimulants / Boosters

47. preference

48. Upgrading

49. paternity

50. False
Reason - A job description is not a perfect reflection of a job, because jobs tend to be
dynamic.

51. True

52. False

53. False

54. False

55. True

56. False

57. False

ISC Competency-Focused Practice Questions 30

Business Studies ISC-Class XII

Q.No. Expected Answers

58. True

59. True

60. (a)Work from home and explanation for the same to be written.
(b) Flexible hours and explanation for the same to be written.

61. (a) Regulatory functions to:
• Promote the interests and rights of policyholders.
• Bring transparency in operations by insurance companies.
• Promote efficiency in the insurance sector.
• Supervise the premium rates and terms of insurance cover.
(Any two functions)
(b) Measures:
• Offering personalised insurance plans tailored to the specific needs and preferences of
individual customers.
• Offering multiple channels for communication, such as phone, email, chat, and social
media.
• Introducing technology such as mobile apps, AI-driven chatbots, and online portals.
• Loss prevention advice.
• Regularly seeking feedback from customers through surveys.
(Any one measure)

62. Laissez-faire style of leadership (meaning to be explained)
Chanda Kochar’s reason - the leaders are hands off and the subordinates make decision.
This style will enable subordinates to understand the effects of their decisions by making
calculated decision.

ISC Competency-Focused Practice Questions 31

Business Studies ISC-Class XII

Q.No. Expected Answers

63. Transformation of business:
• US-based company – Dominance of multinationals.
• Will ramp up capacity over time as per global demand – Global market.
• Drive innovation – Growing competition.
• This investment will help catalyse other investments in the sector – Liberalisation of
foreign investment.
• Indigenous manufacturing capability, encourage innovation and support broader job
creation – Globalisation of production.
• People who are being trained at facilities in Malaysia and Mohali - Globalisation of
production.
(Any two of the above phrases to be identified and linked to the transformation of
business.)

Opportunities:
• Increase in employment opportunities over a period of time. (The hiring process has
already begun; the Company has already hired 200 people)
• It will help the developing countries to improve the allocative efficiency of resources.
(Government support will help fund the project and also facilitate access to essential
semiconductor infrastructure and resources)

• It will help to restructure the production & trade pattern in favour of labour-intensive
goods & technologies (it will enhance local talent development).
(Anyone of the relevant point.)

Threats:
• It involves rapid movement of capital, technology & managerial skills. (Government
support will help fund the project)

• The globalisation process challenges familiar assumptions, e.g., increase in
productivity (“We are hopeful this investment will help catalyse other investments
in the sector, Indigenous manufacturing capability, encourage innovation and
support broader job creation,” Mehrotra said.)
(Anyone of the relevant point)
64. (a) Job Training (to be explained in a sentence or two)
(b) Classroom Training (to be explained in a sentence or two).

65. Explain any two regulatory functions of RBI out of the following:
(1) Banker's Bank
(2) Lender of the Last Resort
(3) The Clearing House Function
(4) Custodian of Foreign Exchange
(5) Maintaining the Exchange Rate

ISC Competency-Focused Practice Questions 32

Business Studies ISC-Class XII

Q.No. Expected Answers

66.
(1) B2B
The transaction takes place between two business firms, Allen Leather Pvt. Ltd. and
retailers.
(2) B2C
The transaction takes place between Surabhi’s side business and direct consumers via
Facebook Marketplace.

67. Blake and Mouton’s Managerial Grid.

One extreme combination:

• Impoverished Management (1,1)
Or
• Team Management (9,9)
(Anyone combination to be named and explained)

68. Equity and preference shares to be explained as a source of finance.

ISC Competency-Focused Practice Questions 33

Business Studies ISC-Class XII

Q.No. Expected Answers

69. (a) Scenario 1 - Job enrichment
Scenario 2 - Job enlargement
(b)Satisfaction in job enrichment often comes from the sense of achievement,
responsibility, and autonomy that employees gain. They may feel more fulfilled and
motivated when they have a greater sense of control over their work and can see the direct
impact of their contributions. Whereas, satisfaction in job enlargement typically comes
from the variety of tasks and the opportunity to learn and develop new skills. Employees
may feel more engaged and less bored with their work when they have more variety in
their daily tasks.

(c) The level at which the customer service representative in Scenario 1 finds satisfaction:
Esteem needs.
Esteem from others: This refers to the desire for recognition, admiration, and respect from
others. It involves gaining approval, status, and appreciation from peers, family, or society
at large.

70. (a) Stage:
Case 1 - Reference Check
Case 2 - Medical Examination

(b) Significance:
Case 1 - To collect information about the background, abilities, and character of the
candidate.
Case 2 - To ensure they are healthy and physically fit for the job.

71. (a) Identification of the type of recruitment:
01 - Transfer
02 - Promotion
03 - Employee Referrals/Recommendations
04 - Ex-employees

(b) Internal sources of recruitment. (Anyone advantage to be stated.)

72. (a) Trade Credit
(b) Loans from financial institutions and commercial banks / Crowdfunding / Peer-to-
Peer funding.

73. (a) 360-degree appraisal
(b) An advantage of 360-degree appraisal in the context of self-appraisal, such as -:
It gives an opportunity to the employee to express their career moves or self-assess
their performance objectively.
(c) It is a comprehensive approach as it enables evaluating employees from four different
aspects (explain Self-appraisal, appraisal by superior, peer appraisal, and Subordinate-
appraisal).

ISC Competency-Focused Practice Questions 34

Business Studies ISC-Class XII

Q.No. Expected Answers

74. (a) Job Application Letter
(b) Unsolicited letter (to be explained)
(c) Meaning of Biodata & any two professional details such as professional qualification,
experience, training & certification, etc.

75. (a) The Morale productivity relationship in the case of Mr. Verman is shifting from Low
morale-High productivity to Low morale-Low productivity. He felt cheated and
victimised. Despite that, he continues his efforts of working hard for promotion, due to
fear of not being promoted the next time also. His recent behaviour of non-cooperation
and increasing absenteeism will be affecting his production indicating a shift.

(b)
1. The basis of promotion is not clearly defined.
2. Lack of stability in the promotion policy being followed.
3. No right to appeal is provided to the candidates.

(c) Merit Grading to be explained briefly.

ISC Competency-Focused Practice Questions 35

Business Studies ISC-Class XII

Q.No. Expected Answers

76.
(a) Legal Process Outsourcing (LPO)
(b) California-based legal firm.
(c) Improve efficiency, streamline productivity, and expertise.
(d) Advantages of Outsourcing for Service Providers:
1. Service providers often work with clients from various industries, which allows them
to gain experience across different sectors.
2. By providing services, the service provider builds expertise in specific areas thus giving
the business a better position in the market
3. By servicing multiple clients service providers enjoy economies of lowering operational
costs and increasing profitability.
4. Successful outsourcing contracts often lead to long-term partnerships.
5. Service providers continuously innovate to stay competitive which leads to the
development of new skills, technologies, and best practices within the organisation.
6. The service providers can operate at an international level thus leading to growth
beyond local markets and diversifying their customer base.
7. Outsourcing allows service providers to fully utilise their excess capacity of resources.
Disadvantages of Outsourcing for Service Providers:
1. Due to a highly competitive market the service provider may have to accept lower prices
2. Failing to meet client expectations can result in penalties, contract termination, or
reputational damage.
3. If a key client terminates the contract or shifts to a different provider, the service
provider may face significant financial losses.
4. Investment in technology and training can be costly. There is a fear of clients changing
the service provider.
5. Service providers must comply with all the legal formalities and policies, failing to do
so can lead to legal actions.
6. High turnover rates in the outsourcing industry can be challenging for providers.
Constantly recruiting, training, and retaining skilled workers can disrupt operations and
increase costs.
7. Managing multiple contracts with varying terms and conditions can be complex.
8. Intense competition can make it difficult to differentiate services and
maintain client loyalty.

ISC Competency-Focused Practice Questions 36

Business Studies ISC-Class XII

Q.No. Expected Answers

77. (a) Amit Goenka's emphasis on values such as equity, empowerment, and inclusion
highlight the significance of intrinsic motivation in driving employee engagement and
satisfaction. By prioritizing these principles over monetary rewards, organisations can
cultivate a workplace culture that values fairness, autonomy, and diversity, leading to
enhanced morale and productivity among employees. This approach underscores the
relevance of non-monetary incentives in fostering a positive and inclusive work
environment where individuals feel valued, respected, and empowered to contribute their
best.

(b) Self-actualization: Amit Goenka's emphasis on values like equity, empowerment, and
inclusion aligns with the pinnacle of Maslow's hierarchy, as it fosters an environment
where employees can realize their full potential and pursue personal growth.

Esteem needs: By promoting equity and empowerment, Goenka's approach addresses
employees' need for recognition, respect, and status within the organisation.

Social needs: Fostering inclusion creates a sense of belonging and community among
employees, fulfilling their need for social connections and acceptance within the
workplace.
Safety needs: Creating an environment built on principles of fairness and empowerment
provides employees with a sense of security and stability, addressing their need for
safety within the organisational context.

Physiological needs: While not directly addressed, by fostering a positive work
environment, Amit Goenka's approach indirectly supports employees' basic
physiological needs by reducing stress and promoting well-being.

(c) High Morale leading to high productivity.

78. (a) Compulsory retirement, resignation.
(meaning to be explained in a sentence or two.)
(b) Job enrichment.
Reasons:
1. It involves grouping together of job at different levels i.e. vertical loading of job.
2. It provides the employee greater autonomy for planning & controlling his own
performance.
(c) Promotion: Seniority-based promotion.
(to be explained with reference to the given context.)
79. (a) Staff Morale.
(b) Flexible hours.
(c) Meaning of layoff. (to be explained in a sentence or two.)
(d) Internal Recruitment; Ex-employees. (to be explained in a sentence or two.)

ISC Competency-Focused Practice Questions 37