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CBSE Class 12 Pre Board 2019 : Business Studies - Prelim 1 (St Xavier's Sr. Sec. School, Delhi)

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Pre Board Examination 2019 Std. 12 21-01-2019 Set 1 BUSINESS STUDIES Max. Marks : 80 Time : 3 hrs. General Instructions: i) All questions are compulsory. ii) Internal Choices are given in questions therefore students are expected to answer any one. iii) Attempt all parts of the question together. iv) Neatness is a must. v) Adhere to the prescribed word limit. Section A 1. If an organization derives more benefits even after using less resources, its a result of what? 1 2. Why is it easy to fix responsibility in formal organization? (OR) What gives shape to the organization structure? 1 3. What is negative motivation? 1 4. List any two methods of direct selling. (OR) They don t sell what they can make, but they make what they can sell. Which marketing concept is highlighted here? 1 5. Which kind of cases can be filed in the National Commission under the Consumer Protection Act 1986? 1 6. Name the decision in financial management which determines the overall cost of capital and the financial risk of the enterprise. 1 7. Prem was a supervisor at Annapurna Aata factory. The factory was producing 200 quintals of Aata every day. His job was to make sure that the work goes on smoothly and there was no interruption in production. He was a good leader who would give orders only after consulting his subordinates and work out the policies with the acceptance of the group. Identify and describe the leadership style being adopted by Prem. 1 8. Mr Gautam, Financial Manager of Essar Ltd. has prepared the Annual Statement of proposed expenditure to be presented in the Annual General Meeting. Identify the type of plan formulated by the Financial Manager. (OR) What is meant by Grapevine? 1 Section B 9. 10. Directing is the essence of management process. Explain. (OR) Explain any three functions performed by a supervisor that are vital to any organization. 3 Grover Ltd. has a plan of increasing profits by 25%. For this, it has incurred a lot of time and money. But the competition starts increasing, so it could not change its plan to beat the competition because of huge amount of money had already been spend to the pre decided plan. It caused losses to the company. Identify and explain any two limitations of planning highlighted in the above case by quoting the lines. 3 Std. 12 11. 12. 13. BUSINESS STUDIES (Set 1) Page 2 In today s commercial world, the stock exchange performs many vital functions which lead investor towards positive environment. Explain how by giving three such reasons. (OR) Differentiate between Primary Market and Secondary Market on the basis of: a) Sale of securities b) Capital Formation c) Determination of Price. 3 Shenoy Ltd. is engaged in manufacturing of footwear. It s organizational structure suffered from the drawback of interdepartmental conflicts and inflexibility, so the company decided to change its structure to the one which facilitates expansion and growth. Identify the two structures highlighted above by quoting the lines and explain any two limitations of the latter one. 3 Aman wants to open a restaurant and is looking for a proper place to start it. He is also thinking of the amount of funds which will be required for some of the set ups like food making and storing machines. a) Identify and state the type of decision highlighted above. b) Explain any two factors affecting this decision. 3 Section C 14. 15. Mr. Dhananjay is the Divisional Manager of the Export Division of Freshness Tea Company . For some time in the past a restriction has been imposed on export of tea. It is evident that the company s export business depends on the Government s policy. Recently there has been a change of Government in the centre. As soon as the new government took over, it removed the restriction imposed on the export of tea. With the coming of this news the division under Mr. Dhananjay heaved a sigh of relief. a) The change of government is having its impact on the two dimensions of business environment. Identify them by stating the suitable lines from the para. b) Identify and explain the characteristic of Business Environment highlighted above. 4 State any four Regulatory functions of SEBI. (OR) Explain any two methods of floating new issues in the Primary Market. 4 16. Anshu used an entire tube of men s moisturizers of a famous brand. This brand was endorsed by a famous Bollywood personality which claims to bestow lighter skin and contains a substance that ensures oil free skin. But his skin had no effect of being fair even after an entire tube was used. He wrote to the customer helpline of this company asking for documentary scientific proof that this cream can lead to whiteness of the skin. No response was received by him from the company regarding this, so he sent the matter to the department of consumer affairs seeking third party verification of the product. Identify and explain the two rights of consumer violated by the company. 4 17. State any four characteristics of a good brand name. (OR) Explain any four functions of labelling. 18. Mr. Jagat is working at the top level of the management of Pure Treatment Ltd. in Noida. He is the team leader of the water treatment project. The project is acclaimed to be a huge success. He is proficient in Hindi, English and Punjabi. He also has working knowledge of Tamil. The company has received a new project in Chennai. The company decides to send him there to repeat the success story. 4 Std. 12 BUSINESS STUDIES (Set 1) Page 3 However, due to lack of proficiency in Tamil, he is hesitant in freely expressing his opinions. He decides to first write the message in English and then translate it into Tamil. Despite this, he is not able to build a good rapport with the team. a) Identify the communication barrier discussed above. b) State the category of this communication barrier. c) Explain any other barrier of the same category. 19. 20. The directors of a company want to modernize its Plant and Machinery by making a public issue of shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant for the new public issues of shares. Advise the directors whether to approach stock exchange or a consultant for new public issue of shares and why? Also advise about the different methods (any three) which the company may adopt for the new public issue of shares. Section D a) b) 21. 22. tool of promotion will be primarily used for the following: To promote or protect a company s image or its individual products. An existing product meant for mass usage by literate people. To introduce a new product to a particular class of people through door to door visits. iv) To attract attention of the people by using incentives. Why do companies use all the tools at the same time? 4 4 Which i) ii) iii) Explain the importance of Coordination. (OR) Explain the relationship between Management and Science. 5 5 A. S. Ltd is a large company engaged in assembly of air conditioners. Recently the company had conducted Time Study and Motion Study and concluded that on an average a worker can assemble ten air conditioners in a day. The target volume of the company in a day is assembling of 1000 units of air conditioners. The company is providing attractive allowances to reduce labour turnover and absenteeism. All the workers are happy. Even then the assembly of air conditioners per day is 800 units only. To find out the reason, the company compared actual performance of each worker and observed through C.C.T.V that some of the workers were busy in gossiping. a) Identify the function of management discussed above. b) State those steps in the process of the function identified which are discussed in the above paragraph. 5 Section E 23. 24. Explain briefly the steps involved in the process of organizing. (OR) Differentiate between the concept of Delegation and Decentralization on the basis of a) Nature b) Freedom of Action c) Parties involved d) Significance 6 Nishant, the director of a garments company, is planning to manufacture bags for the utilization of waste material from one of his garment units. He has decided that this manufacturing unit will be set up in a rural area of Orissa where people have very few job opportunities and labour is available at very low rates. He has also thought of giving equal opportunities to men and women. For this he wants four different heads for Sales, Accounts, Purchase and Production. He gives an advertisement and shortlists ten candidates per post after conducting different selection tests. Identify and explain the next few steps for choosing the best candidate out of the candidates short- listed. 6 Std. 12 25. BUSINESS STUDIES (Set 1) Page 4 Rishabh Ltd. was not performing well. After detailed analysis it was discovered that workers of the production department were not satisfied with the behavior of Mr. Vikram, the production manager, as the workers were forced to work for long hours without any rest. Keeping this view, the management decided to replace Mr. Vikram with Mr. Gurpreet who had recently completed his M.B.A from IIM Ahmedabad. Mr. Gurpreet did a detailed analysis of work which involved heavy manual labour. He allowed small pauses to the workers so that they could recharge their energy for optimum contribution. He also conducted a detailed analysis on the environment in which the business exists and thus used to change the goals according to the needs of the environment. a) Name and explain the technique of scientific management adopted by Mr. Gurpreet. b) He further desires to find out the best way to doing a job. Suggest to him the technique of scientific management. c) Name and explain the characteristic of management being referred above. 6 -x-x-x-x-x-x-

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