NBSE Question Papers Business Studies Term-1 (Set-2) for Class 12

Class 12  SET-2 Series NBSE/XII/2021 TERM-I Code No. 054/12/2 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. When the method of sales promotion is adopted in quick sessions by a company, this reflect .................. . (a) crisis (b) goodwill (c) competition (d) happy future 4. To which level of management do the managers of first-line belong? (a) Lower level (b) Middle level (c) Top level (d) None of these 5. ‘Three subordinates – S1, S2 and S3 receive orders from Mr. A.’ In such a situation, which principle of management is being observed? (a) Equity (b) Order (c) Unity of command (d) Unity of direction 6. For a good brand .................. is necessary. (a) short name (b) to be memorable (c) attractive design (d) to be alert 7. To be able to practice in India lawyers have to become members of the Bar Council which regulates and controls their activities. Identify the feature of profession to which the above case is related. (a) Well-defined body of knowledge (b) Restricted entry (c) Professional association (d) Ethical code of conduct 8. Sales promotion is helpful in making .................. Effective. (a) Advertisement (b) Personal selling (c) Both (a) and (b) (d) Publicity NBSE 2021 2

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 10. 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 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 results in decreasing .................. . (a) coordination (b) proper use of resource (c) future uncertainties (d) control NBSE 2021 3 [P.T.O.

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 18. In any business, it is important to be aware of the actions and strategies of your competitors. A business environment enables firms to analyze their competitors’ strategies and actions. Further they can create their own strategies accordingly. Identify which of the following best indicates the importance of business environment. (a) Identification (b) Improvement in performance (c) Coping with rapid changes (d) All of these 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. (b) Brand (a) Branding (d) Brand Mark (c) Brand Name 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. Mohan, the manager of a business undertaking is very lax with his fellow employees and subordinates. He does not give them parameters or rules for reporting to work and completion of assignments. Which principle of management is being overlooked? (a) Division of work (b) Discipline (c) Scalar chain (d) Initiative NBSE 2021 4

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 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. Mrs. Radha Goswami is a sales manager in ‘Radha Krishan Limited’. The company was never in favour of sale on credit. Recently, due to the entry of several foreign companies in the market, the competition has increased. In order to overcome this problem, Mrs. Goswami decided to do the sale on credit. The condition of sale on credit was that in the account of any buyer the balance would not exceed five lac at any time and that the maximum duration of paying off would be fifteen days. If the payment was made within this duration, no interest would be imposed, and if the payment was made on the 16th day, the interest for sixteen days would be realised. What do you learn about the ‘importance of business environment’ from the event stated above? (a) It helps in assisting in planning and policy formulation. (b) It helps in improving performance. (c) It helps in tapping useful resources. (d) It helps in coping with rapid changes. NBSE 2021 5 [P.T.O.

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 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: O rganizing provides much needed stability to the enterprise as it can then continue to survive and grow in spite of changes. Statement II: Organizing provides benefits of specialization. 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. Identify the correct sequence of steps to be followed in an organizing process. (a) Departmentalization (b) Establishing reporting relationships (c) Assignment of duties (d) Identification and division of work NBSE 2021 6

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. A management expert was invited by ‘Raghav Ltd.’. He gave a lecture in the meeting of employees on the importance of organizing function of management. He said that during this function the establishment of working relationships clarifies lines of communication and specifies who is to report whom. This removes ambiguity in transfer of information and instructions. It helps in creating a hierarchical order thereby enabling the fixation of responsibility and specification of the extent of authority to be exercised by an individual. Identify the point of importance of organizing highlighted in the above case. (a) Benefit of specialization (b) Optimum utilization of resources (c) Clarity in working relationships (d) Development of personnel 36. 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. 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 NBSE 2021 7 [P.T.O.

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 science 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. 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: W hen 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 organisations because each department is performing activities in isolation from others and barriers between departments are becoming more rigid. NBSE 2021 8

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. In a business organization, the manager is busy in making plans for the coming year. The company has launched so many new products in the market. The main question before the company is how to advertise the new products. In the answer to this question, the planners collected several suggestions; namely, the job of advertisement should be done by the company itself; for advertisement the help of outsourcing of services should be taken; some of the work of advertisement should be done by the company itself and for some of it should be depended on the outsourcing. Still, other answers to this question are being looked for. Which particular stage of the ‘Planning Process’ in the above event is being completed by the managers? (a) Setting objectives (b) Developing premises (c) Identifying alternative courses of action (d) Evaluating alternative courses 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): Planning premises are the assumptions made about the future. Reason (R): Planning does not guarantee success. (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). NBSE 2021 9 [P.T.O.

SECTION-C Read the following text and answer question number 49-54 on the basis of the same. Mohit, the owner of ‘Ravi Constructions’ decided to begin a campaign in order to create awareness among the residents for creating a clean and safe environment. In an effort to develop clean surroundings in the area, he formed a team of 30 members to list the different ways that can be adopted for keeping the area clean. Different people had different suggestions, someone suggested to take the help of local residents including young children, one suggestion was to involve unemployed youth. The idea to take the help of volunteers was also given. A combination of the most effective strategies after evaluating all options was selected for implementation. To achieve the desired goals and objectives, various activities were identified like: (i) Purchase of essential items like dustbins, garbage bags, brooms, phenyl, etc. (ii) Door-to-door collection of garbage. (iii) Recycling of garbage. (iv) Disposal of garbage, etc. Thus, an organizational design was chosen which grouped similar activities together in order to minimise duplication of effort. After identification and grouping of these activities, the work was allocated among the different members. 49. “After identification of different activities the work was allocated to different members.” Which step does this represent in the process of organizing? (a) Identification and division of work (b) Departmentalization (c) Assignment of duties (d) Establishing reporting relationships 50. “Thus, an organizational design was choosen which grouped similar activities together in order to minimise duplication of effort.” Which step under the process of organizing is being referred to in this line? (a) Identification and division of work (b) Departmentalization (c) Assignment of duties (d) Establishing reporting relationships 51. “To achieve the desired goals and objectives, various activities...” Which step under the process of organizing is being referred to in this line? (a) Identification and division of work (b) Departmentalization (c) Assignment of duties (d) Establishing reporting relationships 52. “Thus, an organizational design was choosen which grouped similar activities together in order to minimize duplication of effort.” Which organizational design is being referred to in this line? (a) Functional (b) Functional and divisional (c) Divisional (d) None of these NBSE 2021 10

53. Name the function of management discussed above. (a) Organising (b) Planning (c) Staffing (d) Directing 54. ‘Authority, Responsibility and accountability’ relates to: (a) planing (b) staffing (c) organising (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 that the company had lain its full emphasis on the packaging of their product. On the milk box were written the ‘instructions of use’. 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 a days, 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 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) Standardization and Grading 57. The labelling of a pack of oats cookies explains how the product is beneficial in adding fibre to the diet and the other related health benefits. Identify the related function of labelling being described in the given case. (a) Describes the product and specifies its content (b) Identification of the product or brand (c) Grading of products (d) Helps in promotion of the products 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 NBSE 2021 11 [P.T.O.

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. Ms. Radha, a sales manager of ‘Star Bulb Ltd.’ has to negotiate a deal with a buyer. She finds that if she can offer credit period of 50 days she is likely to clinch the deal which is supposed to fetch the company net margin of say ` 50 crores. Now the company gives power to the manager to offer a credit period of only 30 days. Which principle of Fayol is violated here? (b) Authority and responsibility (a) Discipline (d) Unity of direction (c) Unity of command 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 12