NBSE Question Papers Business Studies Term-1 (Set-1) for Class 12

Class 12  SET-1 Series NBSE/XII/2021 TERM-I Code No. 054/12/1 Roll No.  Candidates must write the Code No. on the title page of the OMR Sheet. l Please check that this question paper contains 12 pages. l Code number given on the right hand side of the question paper should be written on the title page of the OMR sheet. l Please check that this question paper contains 60 questions. l 15 minutes time has been allotted to read this question paper. BUSINESS STUDIES Maximum Marks : 40 Time Allowed : 90 Minutes General Instructions: 1. The Question Paper contains 3 sections. 2. Section A has 24 questions. Attempt any 20 questions. 3. Section B has 24 questions. Attempt any 20 questions. 4. Section C has 12 questions. Attempt any 10 questions. 5. All questions carry equal marks. 6. There is NO negative marking. NBSE 2021 1 [P.T.O.

SECTION-A 1. The goal of the Radha retail store is to increase sales and the goal of the Spastics Society of India is to impart education to children with special needs. Management unites the efforts of different individuals in the organization towards achieving these goals. Identify the characteristics of management discussed above. (a) Management is all pervasive (b) Management is a goal oriented process (c) Management is multi-dimensional (d) Management is a continuous process 2. Under .................. function of management ‘Thinking before doing’ is performed. (a) controlling (b) directing (c) organizing (d) planning 3. According to the traditional point of view .................. is called market. (a) actual buyer (b) possible buyer (c) the group of actual and possible buyers (d) special place 4. At what level of management does the Chief Executive Officer operate? (a) Top level (b) Middle level (c) Lower level (d) None of these 5. What principle of management is violated if an employee gets orders from more than one superior? (a) Unity of command (b) Unity of direction (c) Division of work (d) Scalar chain 6. .................. is the necessity for a good brand. (a) Short name (b) To be memorable (c) Attractive design (d) To be alert 7. Principles of science are based on cause and effect relationship. For example, the phenomenon of an apple falling from a tree towards the ground is explained by the law of gravity. Identify the feature of science to which the above statement is related. (a) Systematized body of knowledge (b) Principles based on experimentation (c) Universal validity (d) None of these 8. The .................. can offer expert opinion to the consumers. (a) publicity (b) personal selling (c) sale promotion (d) advertisement 9. Which of the following options increase(s) employees’ participation in the management that give(s) them an identity in the organization? (a) Decentralization (b) Centralization (c) Both (a) and (b) (d) Delegation NBSE 2021 2

10. Generally, it is thought that planning is related to the planning cycle. It means that a plan is framed, it is implemented and it is followed by another plan and so on. The above statement is related to a feature of planning, identify it. (a) Planning is continuous. (b) Planning is futuristic. (c) Planning involves decision making. (d) Planning is pervasive. 11. The managing director of Shobbna Pvt. Ltd. Ms Anvi Goyal’s view is that “proper organizational techniques help in the accomplishment of work and promote both the efficiency of operations and the effectiveness of results.” Identify that the view of Ms Anvi Goyal is related to which function of management. (a) Planning (b) Organizing (c) Directing (d) Controlling 12. The activities of same nature are grouped together and assigned to a particular department is called as .................. . (a) departmentalization (b) establishing reporting relationships (c) assignment of duties (d) identification and division of work 13. Which of the following is the function of marketing? (a) Promotion (b) Physical Distribution (c) Transport (d) All of these 14. The attitude of the government officials towards business may have either positive or negative impact upon business. Which factor of general environment of business is highlighted by this statement? (a) Technological environment (b) Political environment (c) Social environment (d) Legal environment 15. Which one of the following is a marketing management philosophy? (a) Societal marketing concept (b) Distribution concept (c) Direct marketing concept (d) Channel concept 16. Planning is chalking out plan of .................., i.e., the result envisaged in the line of action to be followed, the stages to go through the .................. to use. (a) coordination, control (b) action, methods (c) coordination, methods (d) action, control 17. From August 15 to August 18 for four days only, 20% discount is given on One plus smart phone by Amazon India. The promotion tool used by Amazon India was .................. . (a) public relation (b) advertisement (c) sales promotion (d) personal Selling NBSE 2021 3 [P.T.O.

18. A business has its own social environment. We can refer to this as its internal social environment which is simply the customs, beliefs, practices and behaviours within the confines of the business. Identify which of the following is an example of social environment? (a) Money supply in the economy (b) Consumer Protection Act (c) The Constitution of the country (d) Composition of family 19. Which of the following principles of management given by Fayol increases the efficiency of the organization? (a) Unity of direction (b) Unity of command (c) Fair remuneration to employees (d) Order 20. .................. divide(s) the burden of taking managerial decisions which helps in taking quick and best decisions. (a) Centralization (b) Decentralization (c) Both centralization and decentralization (d) Globalization 21. .................. is the example of Dunlop. (a) Branding (b) Brand (c) Brand Name (d) Brand Mark 22. Business environment is the sum total of all things external to business firms and, as such, is aggregative in nature. The .................. feature of business environment is highlighted in this statement. (a) specific and general forces (b) dynamic nature (c) inter-relatedness (d) totality of external forces 23. ‘More delegation of authority helps managerial development’. Out of the following with which is this statement related to? (a) Delegation (b) Decentralization (c) Centralization (d) All of these 24. The Production Manager of Bharat Ltd. instructs a salesman to go slow in selling the product, whereas the Marketing Manager is insisting on fast selling to achieve the target. Which principle of management is being violated in the case? (a) Unity of direction (b) Unity of command (c) Order (d) Equity SECTION-B 25. In the recent few years, the ‘Online business’ has become very much in vogue. Now, sitting at home, we can get information about the sellers of any product and other related information through the medium of internet. Through the internet only the process of ordering goods and NBSE 2021 4

making payment is completed. The desired good reach home within the minimum possible time. This new business system has very deeply affected the current business system. The people doing business according to the traditional system are very much worried, and they have started seeing their future as full of darkness. Which particular dimension of the business environment is indicated in the event referred to above? (a) Economic Environment (b) Social Environment (c) Technological Environment (d) Political Environment 26. Mr. Sanjiv Gupta decided to double the production of his company. Now he is going to translate his decision into reality. Here, he is also thinking how many additional/extra machines and workers will be required to achieve the production target. His dream will be possible to be realized only after the arrangement for these extra sources is done. Which stage of ‘Planning Process’ is being completed by Mr. Gupta in the above event? (a) Evaluating alternative courses (b) Selecting an alternative (c) Implementing the plan (d) Follow-up action 27. ‘Products are not purchased but sold’, with which point of view is this statement associated? (a) Product Concept (b) Selling Concept (c) Production Concept (d) Marketing Concept 28. After obtaining the Post Graduate degree in the subject of ‘Business Environment’, Mr. Saksham Miglani was appointed as the Manager in a company. He noticed that the market changes taking place very fast were having a negative impact on the company. Taking advantage of his academic ability, he made a thorough study of the business environment. Based on his study, he prepared a formula to cope with the rapid changes taking place. Within no time, the negative impact on the company of the changes taking place disappeared. Now, the company is running successfully. Identify the point of importance of the business environment in the above event. (a) It helps the firm in identifying the threats and early warning signals. (b) It enables the firm in identifying opportunities and getting the first mover advantage. (c) It helps in tapping useful resources. (d) It helps in coping with rapid changes. 29. Jyoti Ltd. decided to give more stress on the following; to use environmental friendly methods of production, to provide employment opportunities to the disadvantaged section of the society and to make available basic amenities like schools and creches to the employees. Identify the objective of management discussed above. (a) Organizational objective (b) Social objective (c) Personal objective (d) None of these NBSE 2021 5 [P.T.O.

30. Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy, etc. and offered various services like after sale service, availability of spare parts etc. .................. is the element of marketing mix referred here. (a) Product (b) Price (c) Promotion (d) Place 31. “Coordination is not a separate function of management but it happens to be the final truth of a functions.” In what context this observation has been made? (a) Coordination is the essence of management (b) Coordination is not established automatically (c) Coordination is a continuously moving process (d) None of the above 32. For the following two statements choose the correct option: Statement I: Organizing brings effectiveness in administration. Statement II: Organizing helps to avoid confusion and duplication. Choose the correct answer from the options given below: (a) Statement I is correct and II is wrong (b) Statement II is correct and I is wrong (c) Both the statements are correct (d) Both the statements are incorrect 33. Ankh, a manager, expects his subordinates to work for the happiness and pleasure of being in the organization but not for the money. The .................. principle of management is being overlooked by Ankh. (a) subordination of individual to general interest (b) remuneration to employees (c) espirit de corps (d) centralization and decentralization 34. Arrange the following steps involved in the planning process in the correct sequence. (a) Evaluating alternative courses (b) Identifying alternative course of actions (c) Setting objectives (d) Developing premises. Choose the correct option: (a) (a); (b); (d); (c) (b) (c); (b); (a); (d) (c) (c); (d); (b); (a) (d) (b); (c); (a); (d) 35. In order to successfully realize the objectives of an organization, first of all it is ensured which activities will have to be performed. In the list of activities, all the activities, both big and small, are included. But it is not possible to set up separate departments for all the activities. Some similar NBSE 2021 6

activities are put together in the same department. In this way some necessary departments are set up. The reason for doing so is to exercise control over unnecessary administrative expenses. Identify the concept under which similar activities are put together and departments are set up. (a) Assignment of duties (b) Establishing reporting relations (c) Identification and division of work (d) Departmentalization 36. Planing involves many steps. After setting objectives the next step of planning is: (a) selecting an alternative (b) evaluating the alternative courses (c) implement and follow (d) developing the planing premise 37. Mr. Anmol Batra is working in a well reputed company of USA. In the company he is responsible for all the activities of the business and for its impact on society. Identify the management level at which he is working. (a) Top Management (b) Middle Management (c) Operational Management (d) Supervisory Management 38. ‘Beauty Products Ltd’ is a natural and ethical beauty brand famous for offering organic beauty products for men and women. The company uses plant based materials for its products and is the No. 1 beauty brand in the country. It not only satisfies its customers but also believes in overall protection of the planet. Identify the marketing management philosophy being followed by ‘Beauty Products Ltd.’ (a) Product concept (b) Production concept (c) Societal Marketing concept (d) Selling concept 39. ‘In an organization, employees are happy and satisfied, there is no chaos and the effect of management is noticeable.’ Which characteristic of management is highlighted by this statement? (a) Management is goal oriented process (b) Management is all pervasive (c) Management is an intangible force (d) Management is a group activity 40. Management has its own theory and principles that have developed over a period of time, but it also draws on other disciplines such as Economics, Sociology, Psychology and Mathematics. Identify the feature of management to which the above statement is related. (a) Systematised body of knowledge (b) Principles based on experimentation (c) Universal validity (d) None of these 41. Shaukeen Ahmed is working as a leading employee at the low level management in ‘Fialaji Udyog Ltd.’ According to one plan, he has to prepare 100 units of high quality of one item in a day, and every unit should not cost more than ` 2,500. When the work actually started, it was learnt that the desired goods could be prepared within a day, but due to the sudden inflation in the raw material, every unit was to cost ` 2,550. Now Mr. Shaukeen is in a fix what to do and what not to do. NBSE 2021 7 [P.T.O.

The ‘limitation of planning’ being referred to in the above information is .................. . (a) Planning leads to rigidity. (b) Planning may not work in a dynamic environment. (c) Planning reduces creativity. (d) Planning involves huge costs. 42. Management should find ‘One best way’ to perform a task. Which technique of Scientific Management is defined in this sentence? (a) Time Study (b) Motion Study (c) Fatigue Study (d) Method Study 43. For the following two statements choose the correct option: Statement I: T he design of the product contributes to making the product attractive to target customers. Statement II: When we plan to buy a motorcycle, we only see the features like cost, mileage, etc. Choose the correct answer from the options given below: (a) Statement I is correct and II is wrong (b) Statement II is correct and I is wrong (c) Both the statements are correct (d) Both the statements are incorrect 44. The objective of the Marketing Department of ‘Sunderam Kids Wear Ltd.’ is to increase sales by 10 per cent by offering discounts. But, the finance department may not approve of such discounts as it means loss of revenue. These kinds of conflict arise in organizations because each department is performing activities in isolation from others and barriers between departments are becoming more rigid. Identify the point of importance of coordination to which this case is related: (a) Growth in size (b) Functional differentiation (c) Specialization (d) None of these 45. Mr. Ram is the C.E.O. in ‘Ram Lakhan General Pvt. Ltd.’ He is the head of the team making plans for the company also. He gave a number of suggestions to the team out of which the two main suggestions were: First, Mr. Ram said that they had to face a lot of problem in getting the main raw material used in the company, but in the next year it was possible that they could get it easily. Secondly, in the second coming year the rate of bank interest was most likely to increase, which would affect the company’s finance costs. He laid emphasis on this matter that both of his remarks should be kept in view while preparing the plans. Clarify to which stage of the planning process the above event is related. (a) Setting objectives (b) Developing premises (c) Identifying alternative courses of action (d) Evaluating alternative courses NBSE 2021 8

46. F.W. Tayor developed a science for each element of a man’s work which replaces the .................. method. By this one best way of doing a task can be decided and the standard output can be determined. He also said that every worker is an .................. means he is motivated by monetary factors. (a) old rule of thumb, economic man (b) scientifically selection, honest man (c) equal division of work, economic man (d) economic man, honest man 47. A company ignored the after sales services, as a result its relations with the customers got spoiled. On analysis, it was revealed that ignoring the after sales services was its reason, therefore the company took all possible measures. As a result the goodwill of the company improved in the society. Name the communication tool used by the marketer in the above case to improve its image. (a) Advertisement (b) Sales Promotion (c) Public relations (d) Publicity 48. Assertion (A): There may be many ways to achieve objectives. Reason (R): If the project is important, then only one alternate should be generated to avoid the wastage of time and money. (a) Both (A) and ( R ) are correct. (b) (A) is correct ( R) is incorrect. (c) Both (A) and ( R) are correct, and R is the correct explanation of (R). (d) Both (A) and ( R) are correct, and R is not the correct explanation of (R). SECTION-C Read the following text and answer question number 49-54 on the basis of the same. Sarthak Gautam is working on the post of General Manager of ‘Gautam Medicare Private Limited’. He has completed the first function of management, i.e., planning of his company. Now he is preparing for the other function of management, i.e., organizing Mr. Gautam built a team of specialists for this work. The team, first of all, prepared a detailed list of the different activities to be done in the company for the completion of plans. While preparing this list the care was taken that neither any activity should be left undone nor should there be repetition of any activity. The members of the team thoroughly studied the activities included in the list prepared. After studying the activities, the activities of similar nature were put together, so that they should be completed under the supervision of the same manager. For example, advertisements and sale were the activities of similar nature. The responsibility of completing these activities was handed over to the Marketing Manager. After this, the activities to be done on different posts were defined by the team. In other words, it was clarified which activities would be performed by a particular department and who would complete them. At the time of work distribution, a special care was taken to assign the right work/job to the right NBSE 2021 9 [P.T.O.

person. Besides, the team of specialists also settled who would get orders from whom and to whom he would be answerable. 49. ‘A detailed list of the different activities to be done in the company was prepared by the team of specialists’. Which particular stage of the organizing process is indicated by this? (a) First (b) Second (c) Third (d) Fourth 50. ‘Receiving orders and being answerable was clarified by the team of specialists’. What does this action of the team suggest regarding the organizing process? (a) Identification and Division of work (b) Departmentalization (c) Assignment of Duties (d) Establishing Reporting Relations 51. ‘At the time of distribution of work it was made certain that the right person should be given the right work’. To which stage of ‘Organizing Process’ is this statement related? (a) Identification and Division of work (b) Departmentalization (c) Assignment of Duties (d) Establishing Reporting Relations 52. ‘All the activities of similar nature were put together by the team, so that they should be completed under the supervision of the same person.’ Which of the stages of ‘Organizing Process’ is indicated by this action of the team? (a) Identification and Division of work (b) Departmentalization (c) Assignment of Duties (d) Establishing Reporting Relations 53. ‘Different activities to be done in the company’ relates to: (a) Identification and division of work (b) Departmentalization (c) Assignment of Duties (d) None of these 54. ‘Authority, Responsibility and Accountability’ relates to: (a) Planing (b) Staffing (c) Organizing (d) Directing 55. ‘Neerja Milk Producer Pvt. Ltd.’ was established to produce tasty and nutritious dry milk for small children. The company gave its product the brand name ‘Mother’s Love’. The company publicised its product very much and produced the goods of supreme quality. Being impressed by the quality of the product, the people purchased the ‘Mother’s Love’ brand in no time. Here one particular thing was found that the company had laid its full emphasis on the packaging of their product. On the milk box the ‘instructions of use’ were written. Besides, it was also written that ‘mother’s milk is the best’. To write this was the legal requirement. The company was very much successful and within few months, it became the leader in its industry. Which dimension of the business environment is perceived from the event quoted above? (a) Technological Environment (b) Political Environment (c) Legal Environment (d) Economic Environment NBSE 2021 10

56. Mr. Bhushan is working as a marketing manager in Swastic Colour TV Ltd. which has 20 per cent of the current market share in the country, aims at enhancing his market share to 30 per cent. in the next three years. He will have to develop a complete marketing plan covering various important aspects including the plan for increasing the level of production, promotion of the products, etc. and specify the action programmes to achieve these objectives. Identify the function of marketing highlighted in the above case: (a) Marketing Planning (b) Packing and Labelling (c) Product Designing and Development (d) Standardisation and Grading 57. On visiting a supermarket to buy a pack of moisturizer, Harsha noticed that the packaging of most of the beauty products exhibited a photograph of a celebrity. Identify the related function of packaging being described in the given case. (a) Facilitates the use of product (b) Assists in promotion of the product (c) Helps in product identification (d) Provides protection to the product 58. Miss Komal Gupta is employed at the middle level management in ‘Rakshak Medicines Ltd.’ In order to achieve the objectives of the company, with several attempts and the opinion of specialists, a plan was prepared. When the plan was actually implemented, Miss Gupta saw that the actual work did not match with the plan. This matter made her very much worried, lest the whole labour in preparing the plan should not go waste. Therefore, immediately she reported this matter to the officer concerned. Identify in the above event which step of the ‘planning process’ is Miss Gupta acting upon? (a) Evaluating alternative courses (b) Selecting an alternative (c) Implementing the plan (d) Follow-up action 59. Bright Ltd. is manufacturing detergent. It has separate departments for finance, marketing, production and human resource development etc. All of them have specialised persons. Collectively they achieve production and sales targets of the company. Identify Fayol’s principle of management in above case. (a) Discipline (b) Unity of command (c) Division of work (d) Authority and responsibility 60. A company wants to differentiate between its efficient and inefficient workers. For the same, it is determined that standard output per worker per day is 8 units and those who made standard or more than standard will get ` 50 per unit and those below will get ` 40 per unit. Now an efficient worker making 9 units will get 9 × 50 = ` 450 per day whereas a worker who makes 7 units will get 7 × 40 = ` 280 per day. Identify the technique of scientific management highlighted in the above case. (a) Differential piece wage system (b) Method study (c) Time study (d) Fatigue study NBSE 2021 11 [P.T.O.

ROUGH WORK NBSE 2021 12