PRE-BOARD (2024-25)

BUSINESS STUDIES (054)

CLASS – XII
Time: 3 hours Max. Marks: 80
General Instructions
1 This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answer should be brief and to the point.
4. Questions 1-20 carry 1 mark each.
5. Answers to the questions carrying 3 marks may be from 50 to 75words.
6. Answers to the questions carrying 4 marks may be about 150 words.
7. Answers to the questions carrying 6 marks may be about 200 words.
8. Attempt all parts of the questions together.

Q1. ‘Sales forecasting is the basis on which a business firm prepare its annual plan for production
and sales.’ Which feature of the planning is highlighted in the above lines? (1)
(a) Planning focuses on achieving objectives
(b) Planning is continuous
(c) Planning is the primary function of management
(d) Planning is futuristic
Q2. Identify the correct sequence of various functions of management performed by every
manager in an organization. (1)
(a) Planning, directing, staffing, organizing, controlling
(B) Planning, controlling, staffing, organizing, directing
(c) Planning, organizing, staffing, directing, controlling
(d) Planning, staffing, directing, controlling, organizing
Q3. “Schedule H1 Drug-Warning: (1)
 It is not dangerous to take this preparation except in accordance with the medical advice.
 Not to be sold by retail without the prescription of a registered medical practitioner.
It is mandatory to be written on medicines.
Which dimension of the business is highlighted in the given case?
(a) Economic environment (b) Legal environment
(c) Technological environment (d) Political environment
Q4. Which of the following statements correctly describe the meaning of principle of subordination
of individual interest to general interest? (1)
(i) The interests of an organization should take priority over the interests of any individual
employee.
(ii) A chain of authority and communication that runs from top to bottom should be followed by
the managers and the subordinates.
(iii) The larger interests of workers and stakeholders are more important than the interest of any
one person
(a) Only (i) (b) (ii) & (iii) (c) (i) & (iii) (d) (i) (ii) & (iii)
Q5. ITC started its business with Jobaico Industry. Later, it entered in hotel industry, consumer
goods industry, stationery, etc. ITC assured quality to customers and kept company’s name
as its identity. This helps the customers in product identification and hence ensured quality. It

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 also built up their confidence and help in increasing their level of satisfaction. Name the
element of marketing mix indicated in the given case. (1)
(a) product (b) Price (c) Place (d) Promotion
Q6. ‘In order to be successful, an organization must change its goals according to the needs of the
environment.’ Which characteristic of management is highlighted in the given statement? (1)
(a) Management is a dynamic function.
(b) Management is all pervasive.
(c) Management is a goal-oriented process.
(d) Management is a group activity.

Q7. ‘An understanding of the philosophy or the concept to be adopted is important as it determines
the emphasis or the weightage to be put on different factors, in achieving the organizational
objectives.’ Which concept of marketing is highlighted in the given statement? (1)
(a) Marketing philosophies (b) Marketing management
(c) Marketing mix (d) None of the above

Q8.‘It is essentially the preparation of a financial blueprint of an organization’s future operations.’

Identify the related concept indicated here. (1)
(a) Financial management (b) Financial planning.
(c) Capital budgeting decision (d) Dividend decision

Q9. Read the following statements---- Assertion (A) and reason (R), and choose one of the correct
alternatives given below: (1)
Assertion (A): Recommendations by employees are a good source of recruitment.
Reason (R) : This is so because their background checks are made thoroughly.
Alternatives:
(a) Both Assertion (A) and reason (R) are true but reason is the correct explanation of the
assertion.
(b) Both assertion and reasons are true but reason is not the correct explanation of the
assertion.
(c) Assertion is true but reason is false.
(d) Assertion is false but reason is true.
Q10. Identify the incorrect pair from the given principles of management in column I with their
statements in column II, and chose the correct alternatives. (1)
Column I Column II
A. Scalar Chain (i) Formal communication channel
B. Initiative (ii) Discourages commitment of employees towards the
organization
C. Remuneration (iii) Cordial relationship between employees and
management
D. Division of work (iv) Increases efficiency as same work is performed
repeatedly

(a) A-(i) (b) B-(ii)

(c) C-(iii) (d) D-(iv)

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Q11. Once a worm was found in noodles of a famous company and similarly insect was found in
soft drink of a company. Which right should the consumer exercise, so that in future health
hazard is not caused to any consumer? (1)
(a) Right to safety (b) Right to seek redressal
(c) Right to be heard (d) Right to be assured

Q12. Read the following statements carefully.

Statement I: Capital market refers to the facilities and institutional arrangements through
which long-term funds, both debt and equity are raised and invested.
Statement II: Capital market consists of development banks, commercial banks and stock
exchanges.
Choose the correct option from the options given below:
a) Statement I is true but II is false.
b) Statement II is true but I is false.
c) Both the statements are true.
d) Both the statements are false. (1)
Q13. As the span of management increases in an organization, the number of levels of
management in the organization__________. (1)
(a) increases (b) decreases
(c) remains unaffected (d) None of the above
Q14. Which of the following statement is not true about ‘product’?
(a) It provides functional benefits, psychological benefits and social benefits.
(b) It is a mixture of tangible and intangible attributes.
(c) It is a ‘bundle of utilities’ or ‘sources of satisfaction’.
(d) It is not offered for attention, acquisition, use or consumption (1)
Q15. Name the process of streamlining the attributes of a person required for doing a Job.
(a) Selection (b) Placement (c) Induction (d) Training. (1)
Q16. In controlling, actual performance is compared with_______.
(a) performance of other employees
(b) performance of previous year
(c) planned performance
(d) None of the above (1)

Q17. District commission shall have jurisdiction to entertain complaints where the value of goods
or services paid as consideration do not exceed:
(a) Rs. 25000 (b) Rs 100000 (c) Rs 10000000 (d) Rs 5000000 (1)

Q18. Degree of decentralization indicates the degree of_________.

(a) authority delegated (b) responsibility
(c) accountability (d) All of the above (1)
Q19. Packaging is said to have the unique capacity to make products stand out in a crowded
market place. Therefore, the convenience of the consumer is at the top of the mind of the
marketer as they are focusing on developing packaging that’s easier to open, to protect
against breakage, maintain freshness during delivery and keep a consistent look and feel
across multiple channels.
Identity the type of plan being described in the above lines.
(a) Programme (b) Method (c) Strategy (d) Rule (1)
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Q20. _________refers to negative and unfavorable external factors that are likely to create
hurdles for a firm. (1)
(a) Opportunities (b) Warnings
(c) Threats (d) None of these

Q21. A construction company got a contract for constructing a foot-over bridge. It appointed an
engineer to take charge of the same. The engineer was instructed that the work should be
completed within a period of two months with the maximum cost of Rs, 5,00,000. Any
negative variation in the cost beyond 5% should be brought to the notice of authorities
immediately. He was also asked to keep a special check on the supply of construction
material as if it is not supplied in time then, the entire project would get delayed.
Which concept(s) of one of the functions of management is/are being referred to in the
given case? Discuss. (3)
Q22. Explain ‘Internship training’ and ‘vestibule training’ and classify them as on-the-job and off-
the-job methods of training. (3)
Q23. “Controlling is an indispensable function of management. Without controlling the best of
plans can go away “. Do you agree? Explain any two reasons in support of your answer.
OR
“It is generally believed that measurement of performance should be done after the task is
completed.” Identify and explain the step in the process of the function of management
being discussed above and the step followed by the same in the process. (3)
Q24. State the development functions of the Securities Exchange Board of India.
OR
State any three money market instruments. (3)
Q25. ‘In an interview with a leading news channel, Mr. Sandeep, CEO of ‘Get My Job’ has
suggested that the Companies which want more and more people to apply for jobs in their
organization should make the process for applying for jobs easier and candidate friendly.’
Name and explain the next two steps which follow the step, in the process of the function
of management being discussed above. (4)
Q26. Explain the concept of democratic leadership and state its features. (4)
Q27. Briefly explain the positive and negative aspects of the type of communication which arise
out of the need of employees to exchange their views.
OR
Identity and explain the elements of directing mentioned below:
A. Astha, a manager, has the ability to influence others to bring about a change in their
behaviour.
B. Neeraj, a managing director, declares share in the profits to the manager for their
contribution to increase profits of the company. (4)

Q28. Explain any four factors that can affect the working capital requirement of a company.
OR
Explain any four factors that affect the choice of capital structure of a company. (4)
Q29. Santosh wants to start a business of selling N-95 masks after the outbreak of the global
pandemic of COVID-19. Due to the uncertain market conditions, he wants to make a low

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 investment in fixed capital. Suggest how the decisions related to the choice of technique
and financing alternatives can help Santosh in ensuring a low investment in fixed capital
requirements. (4)
Q30. Explain the following rights of consumers provided by Consumer Protection Act, 1986.
(a) Right to Safety (b) Right to Consumer Education (4)
Q31. Explain 'Science, not rule of thumb', 'Harmony, not discord', and 'Development of each and
every person to his or her greatest efficiency and prosperity' as principles of Scientific
Management given by F.W. Taylor. (6)
Q32. ‘Planning is worth the huge costs involved’. Do you agree? Explain any four reasons in
support of your answer. (6)
OR
‘If the project is important, then more alternatives should be generated and thoroughly
discussed amongst the members of the organization.’ Identify and explain the steps in the
process of planning being discussed above. Also, explain the remaining steps which will
have to be carried out to complete the process.

Q33. Anand Ltd. was running a successful business of manufacturing and selling electric bulbs,
decided to diversify in the field of electric cables. For this, it needed to install a new plant
the minimum cost of which was Rs 2 crores. It had retained earnings amounting to Rs 50
lacs but the rest was to be raised from the market. The finance manager was given the
responsibility to decide the different sources from where the remaining financial requirement
could be fulfilled.
(a) Which financial decisions are involved in the above case?
(b)Discuss two factors each to be considered for the above-mentioned financial
decisions. (6)
Q34. ‘Advertising’ and ‘Personal selling’ both are communication tools used by the marketers to
promote their products. Yet they differ in their approach. Differentiate between the two by
giving any six points. (6)
OR
‘The elements of marketing mix are popularly known as 4 P’s of marketing.’ Briefly explain
these elements.

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