OR The marketing mix consists of various variables, which have broadly been (1½ × 4) classified into four categories, popularly known as four Ps of marketing. These are: (i) Product, (ii) Price, (iii) Place, and (iv) Promotion, and are discussed (½ mark for as follows: 1. Product: Product means goods or services or ‘anything of value’, which the heading is offered to the market for exchange. The concept of product relates and 1 mark to not only the physical product as mentioned in the above examples for the but also the benefits offered by it from the customer's view point (for explanation) example, toothpaste is bought for whitening teeth, strengthening gums, etc.). The concept of product also includes the extended product or what is offered to the customers by way of after sales services, handling complaints, availability of spare parts etc. These aspects are very important, particularly in the marketing of consumer durable products (like automobiles, refrigerators, etc.). The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products. 2. Price: Price is the amount of money customers have to pay to obtain the product. In the case of most of the products, the level of price affects the level of their demand. The marketers have not only to decide about the objectives of price setting but to analyse the factors determining the price and fix a price for the firm’s products. 3. Place: Place or Physical Distribution include activities that make a firm’s products available to the target customers. Important decision areas in this respect include selection of dealers or intermediaries to reach the customers, providing support to the intermediaries (by way of discounts, promotional campaigns, etc.). 4. Promotion: Promotion of products and services include activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. Most marketing organisations undertake various promotional activities and spend a substantial amount of money on the promotion of their goods through using a number of tools such as advertising, personal selling and sales promotion techniques (like price discounts, free samples, etc.). E–14 n Business Studies– XII
5Sample Paper– Maximum Marks: 80 Time Allowed: 3 Hours General Instructions: Same as Sample Paper-1 Q1. Disadvantage of divisional structure is: 1 (a) duplication (b) conflicts (c) misuse of autonomy (d) All of these Q2. Example of social environment is: 1 (a) rise in disposable income of people (b) social customs, values and traditions (c) degree of political stability (d) None of these Q3. Business environment does not consist of : 1 (a) economic environment (b) legal environment (c) political environment (d) finance environment Q4. Social objective is: 1 (a) ensuring growth of revenue (b) providing job opportunities (c) meeting financial needs of employees (d) None of these Q5. Demand for reservation in job for minorities is an example of : 1 (a) legal environment (b) socio-cultural environment (c) political environment (d) economic environment Q6. The production target was to produce 10,000 shirts per months @ ` 100 per shirt. But the actual achievement was @ ` 90 per shirt. This shows the firm’s: 1 (a) effectiveness (b) efficiency (c) Both (a) and (b) (d) None of these. Q7. Management creates a dynamic organisation by: 1 (a) avoiding changing environment (b) optimum utilisation of resources (c) adapting to changing environment (d) All of these Q8. Differential piece rate plan means paying differently on the basis of: 1 (a) age (b) experience (c) quantity of production (d) All of these Q9. External source of recruitment does not have the advantage of ___________. 1 (a) wider choice (b) being economical (c) fresh talent (d) competitive spirit Q 10. Controlling is the ________ function of management. 1 (a) first (b) last (c) second (d) third Q11. Element of delegation involves: 1 (a) authority (b) responsibility (c) accountability (d) All of these OR A sound organisation structure has the benefit of: (a) specialisation (b) clarification of authority and responsibility (c) avoiding duplication of work (d) All of these Q12. In case aggrieved party is not satisfied with the order of District Consumer Forum, an appeal can be made before the state commission within: 1 (a) 60 days (b) 15 days (c) 30 days (d) 45 days OR Consumer products are of: (a) 2 types (b) 3 types (c) 4 types (d) 5 types E–41
Read the following text and answer questions 13-16 on the basis of the same: A company ‘White Roses’ is a successful bed sheet selling company. It sells ` 1 crore worth sheets to a corporate customer. The company gives a period of 2 months to the client to pay for the sheets. The company sends an invoice to the customer and the inventory account gets reduced by ` 1 crore. The account receivable is increased by ` 1 crore. When its corporate client pays within the period of 2 months the cash is increased by ` 1 crore and the account receivable is reduced by ` 1 crore. Q13. In the above financial transaction the essential ingredients of which concept of ‘financial management’ have been highlighted? 1 (a) Sound working capital management (b) Sound fixed capital management (c) Sound cash management (d) None of these Q14. What is the other term used for long-term investment decision? 1 (a) Finance Budgeting (b) Sales Budgeting (c) Capital Budgeting (d) None of these Q15. Which concept of financial management is related to selection of the best financing or investment alternative? 1 (a) Mental decisions (b) Financial decisions (c) Planning decisions (d) None of these Q16. Financial management consists of: 1 (a) Investment decision (b) Financing decision (c) Dividend decision (d) All of these Read the following text and answer questions 17-20 on the basis of the same: A bank named ‘Dhan Sanchay’ allows the Gupta family to deposit their money time and again in it. It gives a definite return to this family which is in the form of interest. To get this interest the money saved in the household of Gupta family gets deposited into this bank. Nearby there is a stock exchange. Mr. Raj Gupta, who is the head of the family, goes there and buys securities. He says that by investing in securities, more return is earned by him on his saved money though the risk is also there. Q17. Identify the process in the above case performed by the bank and the stock exchange. 1 (a) Lending (b) Borrowing (c) Financial intermediation (d) None of these Q18. What are the roles of the bank and the stock exchange with respect to each other? 1 (a) Associative intermediaries (b) Competing intermediaries (c) Both (a) and (b) (d) None of these Q19. Name a condition for the bank to perform its role in this process. 1 (a) Low risk (b) Significant return (c) Both (a) and (b) (d) None of these Q20. Name a condition for the stock market to perform its role in this process. 1 (a) No risk (b) High return (c) Both (a) and (b) (d) None of these Q21. Differentiate between on-the-job training and off-the-job training. 3 Q22. ‘Controlling is both, backward and forward-looking function’. Do you agree? Give reason. 3 Q23. Ranu Industries is manufacturing room heaters. Ranu, the MD, applies her knowledge of management in running her factory. Ranu always explains to all employees that although achieving the goals in time are important but more important is that they should be achieved at minimum cost and wastage. She also keeps her employees motivated by telling them that the organisational goals can be achieved only by the combined efforts of all. (a) Identify the concept of management being referred by Ranu. (b) State any two features of management which can be inferred from the above case. (c) State any two other features of management. 3 E–42 n Business Studies– XII
OR Explain any four characteristics of Coordination. Q 24. A company, in need of funds, is planning to issue equity shares. The directors of the company are suggesting different methods for the new issue of these shares. Identify the methods of flotation suggested by them. (a) Sell the entire issue to Life Insurance Corporation. (b) Issue the shares to public through intermediaries like issuing house. (c) Offer the new issue to the existing shareholders. 3 OR The Return on Investment (ROI) of a company ranges between 10-12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt: Option ‘A’: Rate of interest 9%; Option ‘B’: Rate of interest 13% Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reason in support of your answer. Also state the concept being used in taking the decision. Q 25. The monthly production target of a company for the year 2016 was 6,000 units. The production manager had two supervisors under him. He gave them the task of maintaining the daily production statements so that they can easily identify whether the work is going in the right direction or not. The production manager had weekly meetings with the supervisors to know about the deviations, if any, and to decide the future course of action. Since the supervisors had one-to-one interaction with the workers daily, the production manager always took into consideration the suggestions given by the supervisors. (a) Identify the function of management performed by the supervisors in the given situation. Support by relevant line from the question. (b) What style of leadership is being displayed by the production manager? (c) State any two benefits provided by the manager through his leadership style. 4 Q26. A company has been in the business of manufacturing decorative lamps. Suddenly, it started facing the problem of high employee turnover. Mr. Teja, the human resource manager, identified that employees were not getting sufficient time to interact with each other and there were too many restrictions on them. Also, he found that the employees felt that their work is not given due recognition due to which they do not feel like working there. To retain the efficient employees and to keep them on high spirits, Mr. Teja, the human resource manager formed a Whatsapp group including all the employees. Every month, Mr. Teja would post the name of ‘the employee of the month’ in the group and everybody posted their comments in praise of that employee. They were also free to discuss their other issues in the group that created a climate where they developed faith and respect for each other. (a) As per the Maslow’s Need Hierarchy theory, which needs of employees were not satisfied in the organisation? State by quoting the relevant lines. (b) Which incentives were used by Mr. Teja to motivate the employees? Also state its type. 4 Q27. Explain the important activities performed by human resource management. 4 OR Explain the limitations of internal sources of recruitment. Sample Paper–5 n E–43
Q28. The directors of a company decided to issue debentures worth ` 70,00,000 in order to finance their expansion plans. This would lead to increase in the debt-equity ratio from 2:1 to 3:1 but at the same time it would increase the earnings per share. (a) Which financial decision is being taken by the directors? (b) Which concept of financial management is referred to? (c) Discuss two factors that they need to consider before taking this decision. 4 OR “Determining the relative proportion of various types of funds depends upon various factors.” Explain any four such factors. Q29. Discuss any four functions of financial markets. 4 Q30. Discuss any three factors that affect the determination of the price of a product. 4 Q31. Explain the following techniques given by F.W. Taylor: (a) Differential piece wage system. (b) Standardisation and Simplification. 6 Q32. The Indian pharmaceutical industry has realised that the several types of bacteria have become resistant to the existing antibiotics. To ensure that this may not lead to major medical issues in future, they have started working on this issue. If things go as anticipated, then a new antibiotic for such bacteria, based upon a Compound made in India would hit the market by 2023. (a) Which function of management is being performed in the given situation? (b) Discuss its importance. 6 OR What are the limitations of Planning? Explain briefly. Q 33. Pummy Cosmetics entered the market with a complete range of lipsticks. It established its production unit in Sonipat and the head office in Noida. After making its presence felt in the market and capturing a good market share, it decided to launch a range of nail paints and eyeliners. It also purchased some new hi-tech machines for the production of its entire range of products. (a) Which type of organisational structure would you suggest for Pummy Cosmetics and why? (b) State any two limitations of this structure. 6 Q34. ‘It refers to the use of communication with the twin objectives of informing the potential customers about the product and persuading them to buy the product.’ (a) Which element of marketing mix is being referred to? (b) Discuss its different tools. 6 OR What is labelling? State any five functions of labelling. Answers 1. (d) 2. (b) 3. (d) 4. (b) 5. (b) 6. (c) 7. (c) 8. (c) 9. (b) 10. (b) 12. (c) OR (b) 13. (a) 14. (c) 15. (b) 11. (d) OR (d) 18. (b) 19. (c) 20. (b) 16. (d) 17. (c) qqq E–44 n Business Studies– XII
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