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CBSE Class 12 Board Exam 2016 : Business Studies

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SET-1 Series ONS U . Code No. U . 66/1 U U U- S - c U U Roll No. Candidates must write the Code on the title page of the answer-book. U - c U 15 - U U U U U- S - c U U U - 25 U M U , - 15 U - U q 10.15 10.15 10.30 U - U U - S U U Please check that this question paper contains 15 printed pages. Code number given on the right hand side of the question paper should be written on the title page of the answer-book by the candidate. Please check that this question paper contains 25 questions. Please write down the Serial Number of the question before attempting it. 15 minute time has been allotted to read this question paper. The question paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the students will read the question paper only and will not write any answer on the answer-book during this period. BUSINESS STUDIES U 3 U 80 Time allowed : 3 hours 66/1 Maximum Marks : 80 1 P.T.O. (i) 1 U (ii) 3 U (iii) 4 - 5 (iv) 6 (v) 50 - 75 U U 150 200 - General Instructions : (i) Answers to questions carrying 1 mark may be from one word to one sentence. (ii) Answers to questions carrying 3 marks may be from 50 - 75 words. (iii) Answers to questions carrying 4 - 5 marks may be about 150 words. (iv) Answers to questions carrying 6 marks may be about 200 words. (v) 66/1 Attempt all parts of a question together. 2 1. - U U , U g U ? U U 1 Is Management concerned only with doing the right task, completing activities and achieving goals without taking into consideration the cost benefit ? Give reason in support of your answer. 2. M U 1 Give the meaning of organising as a process . 3. U U 1 Name the type of organisational structure which promotes flexibility and initiative. 4. U (M U ) 1 State the role of route clerk in functional foremanship. 5. U 1 Name and state the aspect of financial management that enables to foresee the fund requirements both in terms of the quantum and the timings . 6. 66/1 U U U ^ U U- U U U U U U c U - U U ^ - S U U U U U U S U U U ^ U 3 1 P.T.O. Rizul Bhattacharya after leaving his job wanted to start a Private Limited Company with his son. His son was keen that the company may start manufacturing of Mobile-phones with some unique features. Rizul Bhattacharya felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investment would be required regularly in this business. Therefore he convinced his son to start a furniture business. Identify the factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile phones. 7. $ U S U 1 Name the function of marketing which is concerned with the cost and location of target market. 8. S U h U U U U U U U U U U U U U U U U U U U Suman bought a box of cheese of a reputed brand from a local shopkeeper. On opening the box she found a piece of stone in the cheese. She reported the matter to the shopkeeper who forwarded her complaint to the concerned company. Within a week the representative of the company visited Suman s residence with an apology and as a replacement offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her. State the consumer right which Suman exercised. 66/1 4 1 9. U U 3 Define Planning . Explain the first two steps in the process of planning. 10. Z U U U $ S U $ U U U U U U U , - . . . U , U U 3 l U U U U U U ( ) U U U $ U U ( ) U ( ) U U Mr. Fernandes is the owner of Unibie Enterprises, carrying on the business of manufacturing electrical appliances. There is a lot of discontentment in the organisation and targets are not being met. He asked his son, Michel, who has recently completed his MBA, to find out the reason. Michel found that all decision making of the enterprise were in the hands of his father. Moreover, his father did not have confidence in the competency of the employees. Thus the employees were not happy. 66/1 (a) Identify any two communication barriers because of which Unibie Enterprise was not able to achieve its target. (b) State one more barrier each of the types identified in part (a) above. 5 P.T.O. 11. U U U $ U U - , - - U U - U U U U U S U U , , U U U U U U S U L U U U U $ U U U U U U U ( ) U U U U U U $ U U m U U / s d ( ) U d - Atul-The Assistant Manager, Vikas-The Marketing Head and Leena-The Human Resource Manager of Montac Enterprises Ltd. decided to leave the company. The Chief Executive officer of the company called the Human Resource Manager, Leena and requested her to fill up the vacancies before leaving the organisation. Leena suggested that her subordinate Miss Rama Wadhwa is very competent and trust worthy, if she could be moved up in the hierarchy, she would do the needful. The Chief Executive Officer agreed for the same. Miss Rama Wadhwa contacted Smith Recruiters who advertised for the post of marketing head for Montac Enterprises Ltd . They were able to recruit a suitable candidate for the company. Atul s vacancy was filled up by screening the database of unsolicited applications lying in the office. 66/1 (a) Name the internal/external sources of recruitment used by Montac Enterprises Ltd . to fill up the above stated vacancies. (b) Also state any one merit of each of the above identified source of recruitment. 6 3 12. U . . . U U U U U M U U $ U- M U . . U U U . . . S U U U ` 4 U U , 3 M 50% U $ U ` 6 U ` 2 U 1 U L U U 1 U L S U U U ( ) U U U U U U U U U m U c Z Mr. Vikas Mehra was the Chairman of IBM Bank . The Bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce the taking over of UK Bank . Mr. Vikas Mehra knew that the share price of IBM Bank would rise on this announcement. Being a part of the Bank, he was not allowed to buy shares of the bank. He called one of his rich friends Mukand and asked him to invest ` 4 crores in shares of his bank promising him the capital gains. As expected after the announcement, the share prices went up by 50% and the market price of Mukand s shares was now ` 6 crores. Mukand earned a profit of ` 2 crores. He gave ` 1 crore to Vikas Mehra and kept ` 1 crore with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas Mehra. Quoting the lines from the above para identify and state any two functions performed by SEBI in the above case. 66/1 7 P.T.O. 13. U , ? 1986 U 3 What is meant by a consumer as per the provisions of Consumer Protection Act, 1986 ? 14. ? M S U 4 What is meant by Management ? Explain its any three features that establish it as an Art. 15. - U , U U , U U U U U $ S U U . U U U m U U S U With change in the consumption habits of people, Neelesh, who was running a sweets shop shifted to chocolate business. On the eve of Diwali he offered chocolates in attractive packages at reasonable prices. He anticipated huge demand and created a website chocolove.com for taking orders online. He got lot of orders online and earned huge profit by selling chocolates. Identify and explain the dimensions of business environment discussed in the above case. 66/1 8 4 16. U U U U U , U U S U U U U S U U U S , S , $ U U U U M U 4 U U U U U U - U U U U U m U U U U U g S U U U U U -o , U U U U U , U U U ( ) U U U U U U U ( ) U ( ) U U ( ) U U U U My Car Ltd. decided to set-up its new car manufacturing factory in the backward area of West Bengal where very less job opportunities were available. People of that area welcomed this effort of My Car Ltd. The company also decided to provide facilities like school, hospital, market etc. in the factory premises so that the people are attracted to join the factory as workers. My Car Ltd. started earning huge profit. Another competeting company asked its production manager Arvind to investigate the reasons of earning huge profits by My Car Ltd. 66/1 9 P.T.O. Arvind found that in both the companies there was systematic co-ordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his organisation communication took place only through the scalar chain, where as My Car Ltd. was allowing flow of communication in all the directions as per the requirement which lead to faster spread of information as well as quick feed-back. (a) Identify the type of organisation which permits the flow of communication in all the directions in My Car Ltd. . (b) Also state an advantage of the type of organisation identified in part (a) above. (c) State any two values which My Car Ltd. wants to communicate to the society. 17. . . U U U - U M U U U U S U U U U m U U U / U m U U U S U $ U U S M , S U g U U U U U U , c S U U S U U U U S U m U U U U U U U m U A.S. Environs Ltd. is dealing in Environment-Consultancy. To get the business, the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the team leader used to travel by air whereas his team travelled by road/train. It was not only time consuming but also at times forced the female team members to travel alone. 66/1 10 4 As a result, the subordinates were not acting in a desired manner to achieve organisational goals. The CEO of the company came to know about it. He called the team leader, discussed the matter with him and decided to change the travel policy of the company. It was decided that in future all the members including the leader would travel together and usefully utilise the travelling time in discussion about the presentation to be given to the clients. This made a positive impact and every member of the team started acting in a manner as desired by the team leader. State the features of the element of the function of management used by the CEO. 18. U U , U U U h $ U U U U U - U U U U S M U $ U U U U U U U U U $ U U U U U U ( ) U S m U U U ( ) ( ) 4 A company was marketing Juicers which were very popular due to their quality and after-sale-services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits the company ignored the after sales, services. As a result its relations with the customers got spoiled and the image of the company in the public was damaged. Top management became concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring the after sales services was its reason. Therefore the company took all possible measures to protect and promote its favourable image. As a result the goodwill of the company improved in the society. 66/1 11 P.T.O. 19. (a) Name and state the communication tool used by the marketer in the above case to improve its image. (b) Also explain role of the tool as identified in Part (a). $ U m U c Z 4 State the functions performed by financial market. 20. l l U U U S U U S U S S U g U U U - g U U 50% U U , , U U U U - M , - c U U U U U U U U U U U m U $ U U U, S U ` 150 U U U U Two years ago Mayank obtained degree in food technology. For some time he worked in a company manufacturing Bread and Biscuits. He was not happy in the company and decided to have his own Bread and Biscuits manufacturing unit. For this he decided the objectives and the targets and formulated action plan to achieve the same. 66/1 12 5 One of his objective was to earn 50% profit on the amount invested in the first year. It was decided that raw materials like flour, sugar, salt etc. will be purchased on two months credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as a Production-Manager who decided the exact manner in which the production activities are to carried out. Harsh also prepared a statement showing the requirement of workers in the factory throughout the year. Mayank informed Harsh about his sales target for different products, areawise for the forth coming quarter. While working on the production table a penalty of ` 150 per day was announced for not wearing the helmet, gloves and apron by the workers. Quoting lines from the above para identify and explain the different types of plans discussed. 21. U U c U U U U U , U S S U U U U U U . U . U U U U - U U U U U U - $ 5 ( ) U U U U U ( ) U ( ) U U S 66/1 13 P.T.O. Prateek is working in a multi-national company in Noida. He was running temperature for the last many days. When his blood was tested, he was found positive for malaria. He was admitted in the hospital and a blood transfusion was advised by the doctors as his condition was very serious. One of his colleagues sent a text message to his superior Mr. B. Chatterjee . Mr. B. Chatterjee, immediately sent a text message to the employees of the organisation requesting them to donate blood for Prateek. When the General Manager came to know about it he ordered for fumigation in the company premises and for cleaning the surroundings. 22. (a) From the above para quote lines that indicate formal and informal communication. (b) State any two features of informal communication. (c) Identify any two values that are being communicated to the society in the above case. U 5 State the steps in the controlling process. 23. U 6 Describe any four characteristics of co-ordination . 24. U U U U ` 60 U ` 0.50 U ` 40 U 10% U U ` 8 40% U U ( ) U U U S c U M ( ) U M m U U 66/1 14 6 Kay Ltd. is a company manufacturing textiles. It has a share capital of ` 60 lakhs. In the previous year its earning per share was ` 0.50. For diversification, the company requires additional capital of ` 40 lakhs. The company raised funds by issuing 10% Debentures for the same. During the year the company earned profit of ` 8 lakhs on capital employed. It paid tax @ 40%. 25. (a) State whether the shareholders gained or lost, in respect of earning per share on diversification. Show your calculations clearly. (b) Also, state any three factors that favour the issue of debentures by the company as part of its capital structure. S U U U U S c U U U U U U U 6 ( ) U S m U ( ) U ( ) Z Vasvi purchased a bottle of pickle from the local grocery shop. The information provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the District forum under Consumer Protection Act and got the relief. 66/1 (a) Identify the important aspect neglected by the marketer in the above case. (b) Explain briefly the functions of the aspect identified in (a) above. 15 P.T.O.

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