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CBSE XII Sample / Mock 2009 : BUSINESS STUDIES with Answers (Paper II)

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SAMPLE QUESTION PAPER -II Sub : Business Studies Class : XII Blue Print Units Very Short Answer Short Answer I, II Long Answer I, II (1) (3, 4) (5, 6) Unit 1 (7) 1(2) Unit 2 (7) 1(2) Unit 3 (0) Total 5(1) 7(3) 5(1) 7(3) _ _ _ Unit 4 (7) 3(1), 4(1) 7(2) Unit- 5 (10) 4(1) 6(1) 10(2) Unit- 6 (10) 4(1) 6(1) 10(2) Unit- 7 (12) 3(2) 6(1) 12(2) 1(2) 5(1) 7(3) Unit- 9 (12) 3(2) 6(1) 12(3) Unit- 10 (8) 4(2) 8(2) 1(4) 5(2) 14(6) 6(1) 6(1) 10(10) 35(10) 55(10) 100(30) Unit- 8 (7) Unit- 11 (14) Unit- 12 (6) Total 50 SAMPLE QUESTION PAPER - II BUSINESS STUDIES Class - XII Max. Marks - 100 Time - 3 Hrs. General Instructions :1. Answers to questions carrying 1 mark may be from one word to one sentence. 2. Answer to questions carrying 3 Marks may be from 50 to 75 words. 3. Answer to questions carrying 4-5 marks may be about 150 words 4. Answer to questions carrying 6 marks may be about 200 words. 5. Attempt all parts of a question together. 1. Different techniques were developed by Taylor to facilitate principles of scientific management. One of them is Fatigue Study . What is the objective of this study ? (1) 2. Which concept of Marketing suggests that the organization should earn profit through (1) consumer satisfaction and social welfare ? 3. Management of any organization strives to attain different objectives. Enumerate any two (1) such objectives? 4. List any two principles of Scientific Management formulated by Taylor for managing an (1) organization scientifically? 5. Give meaning of the term Deviation as used in the control function of management. (1) 6. Which two steps in the process of control are concerned with compelling events to conform (1) to plan ? 7. Give two examples of Shopping products. (1) 8. At which level of packaging, the immediate container is referred to. (1) 9. Managerial activities are performed in all types of organisations in all departments and at all level, Which management character is highlighted here? (1) 10. Give any two advantages of branding to the marketer. 11. Rajat a sales manager, achieved his sales targets one month in advance. This achievement was displayed on the notice board & a certificate for the best performance was awarded to him by the CEO of the company. 1. Name the incentive provided to Rajat. 2. Identify the type of incentive. 3. List two other incentives of the type identified in part (2). (1) (1+1+1 = 3) 12. Explain the steps involved in the process of planning. (3) 13. Describe any three personal barriers to communication. (3) 51 14. Length of production cycle affects the working capital requirements of an organization. Explain how ? (3) 15. Primary objective of financial management is to maximise shareholders wealth. Explain (3) 16. Failing to plan is planning to fail. Explain with suitable Examples. 17. The employees of Manik Ltd., a software company, have formed a Dramatic group for their recreation. Name the type of organization so formed and state its three features. (4) 18. Despite internal sources of recruitment being economical, why do the companies not always use this source? Give any four reasons. (4) 19. What does the abbreviation SEBI Stand for? Explain the term sensex. How many shares (4) constitue sensex? 20. Define primary market. State any two methods of issuing securities in primary market. (4) 21. Success of an organization largely depends upon its management Explain any five (5) reasons to justify the above statement. 22. In your school, You observe that books are kept in office, chalks in the library and office (5) records in the staffroom. How will that affect the achievement of school objectives? Which aspect of management is lacking here and Why? As a manager, what steps will you take to rectify the short (4) comings? 23. Explain the concept of Budgetary Control. Discuss any three advantages of budgetary control. (5) 24. Marketing and selling are two different concepts. Distinguish between the two on any five bases. (5) 25. State any five functions of marketing from the management viewpoint. 26. Explain the term Organisational Structure. Distinguish between Functional and Divisional structure on the following bases : i. Formation ii. Managerial development iii. Responsibility iv. Suitability OR 52 (5) Delegation of Authority is necessary in all types of organizations . Explain any four reasons in support of your answer. (6) 27. State the steps involved in the process of Staffing OR Describe the following methods of training. i. ii. Job Rotation iii. 28. Vestibule Training Apprenticeship (6) Good and effective directing should be based upon certain principles. Explain any three principles of Directing. OR Supervision is an important element of directing function . Explain any four reasons in (6) support of the above statement. 29. The Board of Directors has asked you to design the capital structure of the company. Explain any six factors that your would consider while doing so. OR Every manager has to take three major decisions while performing the finance function. (6) Explain them. 30. Consumer Protection Act provides some Rights to the consumers. Explain any four rights of the consumer as per the Act. OR Non-Government-Organizations perform several functions for the protection and promotion of interests of consumers. State any six functions performed by them. (6) 53 MARKING SCHEME BUSINESS STUDIES SAMPLE QUESTION PAPER - II 1. The objective of fatigue study is to determine the amount and frequency of rest interval in completing a task. (1 mark) 2. Societal concept of management. 3. Any two objectives from the following : i. Social & iii. 4. Organisational ii. (1 mark) Personal Objectives ( mark x 2 = 1) ( x 2 = 1 mark) Any two of the following. i. Science not the rule of thumb ii. Harmony not discord iii. Co-operation not individualism iv. Maximum not restricted output v. Separation of planning & organizational work. 5. Deviation means any variation in the actual performance from the laid down standards. (1 mark) 6. (i) Comparison of actual performance with standards. (ii) Taking corrective action. 7. ( x 2 = 1 mark) Shopping products are (any two) : Clothe, Television, Refrigerator, etc. ( x 2 = 1 mark) 8. From customer s point of view a product is a bundle of benefits. 54 (1 mark) 9. Management is all pervasive light face. 10. (1 mark) Any two of the following advantages. i. ii. It helps in advertising and display programmes. iii. It helps in charging differential pricing iv. It creates ease in introduction of price. i. The Incentive provided to Rajat is Recognition . ii. The type of Incentive is Non-financial Incentive. iii. 11. It enables marketing product differentiation Two other incentives of this type are : (a) Organisational Climate (c) Career advancement opportunity (d) Job Enrichment (e) Job Security (f) Employee participation (g) 12. Status (b) Employee empowerment ( x 2 = 1 mark) (1+1 + ( x 2 =1) = 3 marks) The steps involved in the process of planning are : i. Defining organizational objectives. ii. Developing planning premises. iii. Listing the alternative ways of reaching objectives. iv. Evaluating each alternative with reference to the planning premises to choose the best alternative. v. Formulating supportive plans. vi. Putting the plans into action and their follow-up. ( mark for each step = 6 x = 3 marks) 13. Personal barriers to communication are : (any three) i. A superior may withhold or suppress a communication for which he has a fear of challenge to his authority. ii. A superior may not attach value to the opinion of a subordinate as he lacks confidence in the competence of the subordinate. iii. A subordinate may be unwilling to communicate with his superior if he 55 perceives that it may adversely affect his interest. iv. A subordinate may not communicate with his superior, if there is lack of proper incentive or motivation to communicate. (1 mark for each correct barrier = 1 x 3 = 3 marks) 14. Length of production cycle affects the working capital requirement. When the production cycle is of long duration, more funds would be tied up in raw materials and inventories for a long duration and it would require more working capital to meet day-to-day operational expenses. On the other hand shorter the production cycle lesser the working capital requirements. (3 marks) 15. Wealth maximisation is the primary objective of financial management which means maximising the market value of investment in shares of the company. It is possible only by i. ii. Ensuring effective utilisation of funds; and iii. 16. Ensuring availability of sufficient funds at a reasonable cost; Ensuring safety of funds by creating reserves, reinvesting profits etc. Failing to plan is planing to fail because planning : (any two with examples) i. Provides directions ii. Reduces the risks of uncertainty iii. Reduces overlapping and wasteful activities. iv. Promotes innovation v. Facilitates control vi. Brings coordination (or any other correct point) 17. (1 Mark for each reason + 1 mark for each example = 2x2 = 4) The type of organisation formed by employees of Manik Ltd. is informal organisation. (1 mark) Features of Informal Organisation (any three) (a) An informal organization originates from within the formal organisation as a result of personal interaction among employees. (b) The standards of behaviour evolve from group norms rather than officially laid down rules. 56 (c) (d) 18. Independent channels of communication without specified direction of flow of information are developed by group members. It emerges spontaneously and is not deliberately created by the management. (1 mark for each correct feature = 1x3 = 3 marks = [1+3 ] =4 marks) The reasons why companies do not always choose Internal sources of Recruitment are : (Any four with explanation) i. Limited choice ii. Incomplete source. iii. Lack of competition among employees. iv. Conflict among employees v. Non-availability of fresh talent. (or any other correct limitation) (1 mark for each correct limitation = 1 + 4 = 4 marks) 19. Securities and Exchange Board of India. - 20. 21. Sensex is the benchmark index of BSE. Since the BSE has been the leading exchange of Indian Securities Market, the sensex has been an important indicator of Indian Stock Market Stock of thirty Companies actively traded in the market constitutes the sensex in Bombay Stock Exchange) (1+2+1)) The market where the securities are sold for the first time is defined as Primary Market. In this market, the securities are directly issued by the company to the investors. It includes all long term financial instruments such as equity shares, debentures, bonds, preference shares etc. (2 marks) Methods of issuing securities. (Any two) i. Offer through Prospectus ii. Offer for sale iii. Private placement Right issues iv. v. e-IPOs ( for naming + for explanation 1 x 2 = 2, 2+2 = 4 marks) Success of an organisation largely depends upon its management. This can be justified with the following reasons : i. It helps in achieving group goals. ii. It increases efficiency. iii. It creates a dynamic organisation iv. It helps in the development of society 57 v. It helps in achieving individual goals. vi. It helps in optimum utilisation of resources. vii. It provides vision & foresight. (or any other correct reason) (1 mark for each correct reason with explanation 1 x 5 = 5 marks) 22. The aspect of management lacking is organising/ principle of order. In the absence of orderliness, school objectives will not be achieved effeciently & effectively. _ Things should be placed at appropriate places to achieve maximum efficiency within given time framework (1+2+2) Meaning of Budgetary control 23. Budgetary control is a technique of controlling in which all operations are planned ahead in the form of budgets, and actual results are compared with budgetary standards and the necessary actions are taken to ensure attainment of organizational objectives. (2 marks) Advantages of Budgetary Control (Any three) i. Budgetary control helps in attainment of organisational objectives as it focuses on specific and time bound targets. ii. Budgetary control motivates the employees to perform better as they are aware of the standards against which their performance will be appraised. iii. Budgetary control helps in optimum utilization of resources. iv. Budgetary control helps in achieving coordination. v. Budgetary control facilitates management by exception (1 mark for each correct advantage 3 x 1 = 3 marks =2 + 3 = 5 marks) 24. Sl. Basis Marketing Selling 1. Meaning Identifying the needs and making a conscious effort to satisfy them Activities which are undertaken to secure sale. 2. Orientation Consumer Oriented Production oriented 3. Focus Needs of the purchaser Needs of the sellers 4. Scope Has a wider scope and includes even selling. Limited to only a part of marketing. 58 5. Aim To make profits through customer satisfaction To make profits through sales volume 6. Perspective Long Term. Lays emphasis on growth and stability of business Short term. Emphasises profit maximisation (1 mark for each correct distinction 1 x 5 = 5 marks) 1. To gather and analyse market information which is necessary to identify the needs of customers. 2. To achieve marketing objectives of the organisation, develop appropriate marketing plan. 3. To develop and design product in such a way that it attracts the target customers. 4. To achieve uniformity and consistency in the output, standardise the product and grade the products to ensure that the good belongs to a particular quality. 5. 25. Packaging not only provides protection to the product but also serves as a promotional tool. Labelling helps in providing information about the product. Meaning of organisational structure 26. It is the system of job positions, the roles assigned to them and the authority responsibility among the various positions. (2 mark) Distinction between Functional and Divisional structures Sl. Basis Functional Divisional 1. Formation It is based upon functions It is based upon product lines and is supported by functions 2. Managerial Development Difficult, as each functional manager has to report to top management Easier autonomy as well as the chance to perform multiple functions help in managerial development 3. Responsibility Difficult to fix on one Easy to fix 59 department 4. Suitable for medium sized firms having a single product or small number of related products Suitability responsibility for performance Suitable for large firms having multiple products with distinct characteristics (1 mark for each correct distinction 1 x 4 = 4, = 2 + 4 = 6 marks) OR Delegation of authority is necessary in all types of organisations because it ensures. i. Effective management ii. Employee development iii. Motivation to employees iv. Better coordination v. Reduction in the work load of superiors vi. Organisational Growth. (Any four with explanation) ( mark for naming each point + 1 mark for correct explanation = 4 x 1 = 6 marks) 27 Steps in the process of staffing (i) The first step in the process of staffing is estimating the number and types of manpower required in the organization on the basis of job analysis. (ii) The second step is searching for prospective candidates & stimulating them to apply for jobs in the organization i.e. recruitment and choosing among them the best, i.e., selection. (iii) The third step is placing the selected candidates at the right jobs and introducing and familiarising them with other employees. 60 (iv) The fourth step is evaluating the performance of employees through performance appraisal and organizing training programmes for enrichment of skills required to perform the job. (v) The fifth step is to fix up the compensation of an employee to match his contribution to the organization with his remuneration. (vi) The sixth step is career planning which includes all activities associated with promotion & transfer of employees. (1 x 6 = 6 marks) OR (i) Vestibule Training : * The training which is conducted away from the actual work floor by creating the similar environment using similar equipment. * It enables the trainee to acquire the know how to handle sophisticated (2 marks) machinery & equipment. (ii) Job Rotation : * * (iii) The training which involves shifting the trainee from one department to another or from one job to another. It enables the trainee to gain a broader understanding of the different parts and functions of the organization. (2 marks) Apprenticeship : * * 28 Training is conducted under the guidance of a master worker. The trainee seeking to enter skilled trades undergoes this type of training before being accepted as experts. (2 marks) (2 + 2 + 2 = 6 marks) Principles of Directing are (Any four) : i. Maximum individual contribution ii. Harmony of objectives iii. Unity of Command iv. Appropriateness of direction technique v. Managerial communication vi. Use of informal organisation vii. Leadership viii. Follow up. ( mark for naming the principle + 1 mark for explanation = 4 x 1 = 6 marks) 61 OR Supervision is an important element of directing function as it ensures : i. ii. Facilitating Control iii. Optimal utilisation of resources iv. Maintenance of discipline v. Improvement in communication vi. Improvement in motivation vii. 29. Issuing instructions Timely feedback ( mark for each correct reason = 4 x 1 = 6 marks) Factors affecting capital structure (any six) are : i. Cash flow position. ii. Interest coverage ratio. iii. Debt service coverage ratio. iv. Return on investment v. Cost of Debt vi. Tax rate vii. Cost of equity viii. Floatation cost ix. Risk consideration x. Flexibility xi. Control ( mark for naming & mark for explanation 1x6 = 6 mark) OR Three major decisions are : i. Investment Decision ii. Financing Decision iii. Dividend Decisions ( mark for naming & 1 marks for explanation 2 x 3 = 6 marks) 62 30. Rights (Any four) i. Right to safety ii. Right to be informed iii. Right to choose iv. Right to be heard v. Right to seek redressal vi. Right to consumer education ( mark for naming & 1 mark for explanation 1 x 4 = 6 marks) OR Any six from the following : i. Organising training programmes, seminars & workshops to educate general public about consumer rights. ii. Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest. iii. Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers. iv. Encouraging consumers to strongly protest and take action against unscrupulous, exploitative and unfair trade practices of sellers. v. Providing legal assistance to consumers by way of providing aid, legal advice, etc. in seeking legal remedy. vi. Filing complaints with appropriate consumer courts on behalf of the consumers. vii. Taking an initiative in filing cases in consumer courts in the interest of the general public, not for any individual. (1 mark for each correct function 1 x 6 = 6 marks) 63 SAMPLE QUESTION PAPER II Sub : Business Studies Class : XII Question Wise Analysis S. No. of Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Unit/Ch. Number 2 11 1 2 8 8 11 11 1 11 7 4 7 9 9 4 5 6 10 10 1 2 8 11 11 5 6 7 9 12 A B C Reference Easy Average Difficult Marks Allotted 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 6 6 6 6 6 Estimated Time 1.5 minutes 1.5 minutes 1.5 minutes 1.5 minutes 1.5 minutes 1.5 minutes 1.5 minutes 1.5 minutes 1.5 minutes 1.5 minutes 5 minutes 5 minutes 5 minutes 5 minutes 5 minutes 6 minutes 6 minutes 6 minutes 6 minutes 6 minutes 8 minutes 8 minutes 8 minutes 8 minutes 8 minutes 10 minutes 10 minutes 10 minutes 10 minutes 10 minutes for abbreviations Difficulty Level 30% 50% 20% 64 Estimated Difficulty level B A A A B B A C B B C A A C B C B C B A B C B A A B B B B C

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Additional Info : CBSE Class XII Board Solved Sample / Mock Question Paper 2009 Business Studies with Answers
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