CBSE Class 12 business studies solved question paper General Instructions : (1) All questions from 1 to 5 are of 2 marks and should be answered in 10 to 20 words. (2) All questions from 6 to 10 are of 3 marks and should be answered in 20 to 30 words. (3) All questions from 7 to 15 are of 4 marks and should be answered in 40 to 50 words. (4) All questions from 16 to 21 are of 5 marks and should be answered in 60 to 70 words. (5) All questions from 22 to 24 are of 6 marks and should be answered in 100 words. (6) Attempt all parts of a question together 1. State any two functions of top-level management. [2 Mark] 2. What is meant by 'economic environment' of business ? [2 Mark] 3. Enumerate any two features of directing. [2 Mark] 4. What is meant by production concept of marketing ? [2 Mark] 5. How does marketing help a firm to build goodwill in the market ? [2 Mark] 6. An organisation follows the principles of management. What are the positive effects of each of the following principles of management on the organisation ? [3 Mark] (i) Scalar chain (ii) Equity, and (iii) Division of work 7. How does motivation improve the efficiency of workers in an organisation ? Give any three [3 Mark]points 8. "All managers are leaders, but all leaders are not managers." Do you agree with this statement ? Give any three reasons in support of your answer. [3 Mark] 9. Enumerate any three market related factors that should be kept in view while taking decision on the choice of channels of distribution of any product. [3 Mark] 10. State any three objectives of sales promotion. [3 Mark] 11. Describe, in brief, Taylor's principles of (i) Science, not the rule of thumb, and (ii) Harmony, not discord. [4 Mark] 12. Define the term 'Organizing' and enumerate the steps involved in the process of organizing. [4 Mark] 13. You are the representative of workers in a factory and want to impress upon the management the need for introducing time-rate system in place of existing piece-rate system of wage payment. What four reasons would you like to give to the management to justify your viewpoint ? Explain, in brief. [4 Mark]
14. "Securities and Exchange Board of India is the watchdog of the securities market." Do you agree ? Give four reasons in support of your answer. [4 Mark] 15. Distinguish between Capital market and Money market on the basis of [4 Mark] (i) Participants, (ii) Instruments traded (iii) Investment outlay, and (iv) Safety 16. "Management is regarded as fully-developed profession." Do you agree ? Give reasons. [5 Mark] 17. Explain any five negative impacts of liberalization and globalization on business and industry in India. [5 Mark] 18. "Controlling helps in achieving objectives of the organisation and improving employees' morale." Explain this statement, in brief. [5 Mark] 19. Write any five factors of a structural capital of a business enterprise with examples. [5 Mark] 20. Explain any six features of planning, in brief with examples. [5 Mark] 21. Defining 'organisational objectives' is the first step in the process of planning. Explain, in brief, the other steps of this process. [5 Mark] 22. "Authority can be delegated but accountability cannot." Explain the given statement. [6 Mark] 23. Give any six reasons for "Why employees training are necessary in an organisation? [6 Mark] 24. What are the most important factors which must be considered while taking decision be considered before taking decision about the particular type of advertisement of a product. [6 Mark] 25. What are the six remedies under the consumer 1986 Protection Act available for consumers. [6 Mark]
Solution of CBSE Class 12 business studies Papers 1. Function of top-level management
To determine the objectives of the organization. To Frame policies. To organize activities to be performed. To assemble the required resources. To Control and monitor the planned performance.
2. Economic Environment of Business includes
Gross national product Corporate profits Inflation rates/ Price level changes Productivity Employment rates Balance of payment
3. The features of directing are
It is a pervasive function. It is an ongoing activity. It relates to human factor. It is result oriented
4. Production concept of marketing implies
�Lowering the cost of production �Mass production and distribution.
5. Marketing helps a firm to build goodwill in the market by
Selling quality products Reasonable price Popularizing the products Providing convenient outlets
6. Positive effects of following the principles of management
Clearly defined chain of command and chain of communication. Specify Authority, responsibility relationship. Loyalty and devotion of personnel is ensured. Positive Motivation. Team spirit and enthusiasm. Benefit of Specialization. Increased productivity.
7. Motivation improves the efficiency of workers by
Infusing the willingness to work Bridging the gap between ability and willingness to work Being goal oriented Inducing people to work better
8. Yes, I agree with the statement because of the following reasons
Manager is a part of the formal organization; Leader may be outside formal organization. Manager focuses on organizational goals; Leaders are concerned about aspirations and expectations of followers Manager has formal authority; Leaders have accepted authority.
9. Various market related factors that should be taken into consideration while taking a decision on the choice of channel of distribution for any product are as follows
Geographic concentration Size of Market Nature of market Quantity of purchase
10. Objectives of sales promotion are
Increase in sales volume. Increase in new customers. Enhanced repeat buying/purchasing by the customers. Creating awareness about the product. Gaining shelf space by devising special promotion schemes. Block competition.11. Taylor's principle of Science not the rule of thumb should include any two points from the following : Scientific enquiry and not intuition, experience or hit and miss methods Thinking before doing Exact measure of effort and output so as to determine fair day’s work Use of scientific management techniques
Taylor's principle of Harmony not discord should include any two points from the following :
Mutual give and take Complete mental revolution of both managers and workers Enlightened attitude of managers Discipline and loyalty on part of the workers.
12. Definition : Organizing refers to the process of identifying and grouping various activities and bringing together physical, financial and human resources and establishing productive relations among them for the achievement of specific
goals. Steps of Process :
Division of work. Grouping jobs and departmentation. Establishing authority relationships.
13. Justifications to accept the demand of introduction of time rate system of wage payment in place of the existing piece rate system of wage payment are : Time-rate system is :
Simple to calculate and understand Guarantees minimum remuneration improving employee morale Greater attention improves quality Steady pace reduces damage or rough handling of machines etc. Requires less administrative attentionJustification for rejecting piece rate system : Quality and safety may be endangered by quantity requirements Decreases worker efficiency and health Difficult to determine the cost in some situations
14. Yes, SEBI is the watchdog of the securities market due to following reasons :
It prohibits fraudulent and unfair trade practices It prohibits insider trading It undertakes steps to educate investors It promotes fair practices and a code of conduct.
15. Basis Capital Market Money MarketParticipants Capital institutions, banks, RBI corporate entities, foreign investors and ordinary retail investors. Instruments Equity shares, Debentures T-bills, trade bill, reports, traded bouds, preference shares commercial papers and etc. certificate of deposit. Invesment Not necessarily require a Requires huge sums of Outlay huge financial outlay. money. Safety Risky Much safer 16. No, I don't agree with the given statement Profession is an occupation:
Backed by specialized well defined body of knowledge and training. To which entry is regulated by a representative or professional association. Having statutory or formal ethical code of conduct. Involves professional fees.
Management cannot be regarded as a fully developed profession because of the following reasons :
There is no statutory ethical code of conduct. There is no compulsory and exclusive membership of any association No examination or education to restrict entry
17. The negative impacts of liberalization and globalization are
Threats from MNCs Corporate vulnerability Destabilization of protective environment Increased competition Fast changing technology High obsolescence of material resources
18. Controlling helps in achieving objectives by determining whether :
‰The plans are being implemented ‰There is any progress towards achievement of objectives ‰There is any deviation between actual and desired results ‰There is any need to revise the existing plans
Controlling helps in improving employees' morale by :
‰Creating an atmosphere of order and discipline ‰Making employees aware of their duties and expected standards of performance ‰Reducing careless and negligent working of employees
19. The various factors which affect the capital structure of a business enterprise are as follows: (Any five)
Financial leverage Cash flow ability Control Flexibility Market conditions Floatation costs Legal framework Nature of business Period and purpose of financing
20. The reasons for convincing the management that the company is over-capitalised are : (Any five)
‰Amount of capital invested exceeds real value of assets ‰Fair returns are not realized on capital employed ‰More net assets than those required by business ‰Fall in market value of shares because of reduced earning ‰Adverse credit standing ‰Loss of goodwill and reputation.
21. The features of planning are as follows : (Any six)
‰Contributes to objectives ‰Primacy of planning ‰Forward looking ‰Pervasiveness ‰Efficiency of operations ‰Involves choice ‰Continuous process ‰Intellectual process
22. Authority is a sum of powers and rights to use financial materials & human resources as well as a right to decide to act or not to act. Accountability is the obligation to carry out the assigned task or duties. Delegation is the entrustment of powers and rights of authority to be exercised. A manager can pass on his authority to subordinates however he does not stop being answerable to his superiors. He cannot abdicate his accountability. 23. Employees training is necessary because it : (Any six)
‰Reduces learning time ‰Improves performance ‰Moulds/improves employee attitude ‰Aids in solving operational problems ‰Manages manpower needs ‰Benefits the employees
24. The various factors to be considered on choice of a particular medium are :(Any six)
‰Reach/ Coverage ‰Frequency ‰Qualitative value ‰Selectivity ‰Flexibility ‰Cost
‰Editorial environment ‰Permanence of the medium ‰Nature of the product ‰Nature of the market ‰Life of the advertisement ‰Competitors’ approach
25. The remedies available to consumer under the Act are : (Any six)
‰Removal of defects from the goods ‰Replacement of the goods ‰Refund of the price paid ‰Compensation for loss/injury ‰Removal of deficiency in services ‰Discontinuance of unfair trade practices and restricted trade practice ‰Stopping the sale of hazardous goods ‰Withdrawal of hazardous goods from being offered for sale ‰Payment of adequate costs to parties