CBSE Class 12 Business Studies 2020 — Previous-Year Question Paper

Identify the type of organisation structure from the organisational chart given below of Swastika Industries Ltd. located in Uttarakhand : [Figure: an organisational chart -- 'Managing Director' at the top, branching to three product-line heads 'Skin Care Products', 'Processed Foods' and 'Medicines', each of which branches further to four functional heads 'Production', 'Research Development', 'Marketing' and 'Human Resources']

Which statement is not correct, with respect to 'Organisation Structure' ? (A) Ensures coordination among human and physical resources. (B) Ensures smooth flow of communication. (C) Specifies relationship between people, work and resources. (D) Establishes standards for controlling.

Using external sources for filling vacant positions : (i) Gives a wider choice. (ii) Simplifies the process of selection. (iii) Instils a competitive spirit among the existing employees. (iv) Does not infuse fresh talent in the organisation. Choose the correct option from the following : (A) (i) and (ii) (B) (i) and (iii) (C) (i), (iii) and (iv) (D) (ii) and (iv)

_____ test is a measure of an individual's potential for learning new skills. (A) Personality (B) Aptitude (C) Intelligence (D) Interest

State the objective of financial management.

Organisations which choose to diversify their operations require _____ fixed capital. (more/less)

'Temptations' is a food joint in Imperial Mall in Bengaluru. It is becoming popular among students and working people due to healthy, on-the-go dishes on its menu like 'Paneer Wrap', 'Chickpea Salad', 'Grilled Sandwiches', etc. It has now decided to open two new branches in other parts of Bengaluru. Which financial decision has been discussed in the above case ? (A) Long-term investment decision (B) Short-term investment decision (C) Dividend decision (D) Financing decision

The process of classification of products into different groups on the basis of their important characteristics refers to which of the following marketing functions ? (A) Grading (B) Standardisation (C) Product designing (D) Marketing planning

While the product _____ sets the lower limit of the price, the utility provided by the product sets the upper limit of price, which a buyer would be prepared to pay.

State, giving reason, whether the following statement is true or false : "Advertising refers to short term incentives which are designed to encourage the buyers to make immediate purchase of a product."

Who among the following is not considered a consumer under the Consumer Protection Act, 1986 ? (A) A person who buys any goods for a consideration which has been paid. (B) A person who avails of any service for a consideration which has been promised. (C) A person who avails of a service for a commercial purpose. (D) Any user of goods when such use is made with the approval of the buyer.

Aarushi purchased a pack of biscuits. When she opened it, she felt the biscuits were stale. She carefully read the label on the pack of biscuits which mentioned : "If you are not satisfied with the product quality, write to our Customer Care Cell at Bell Foods Pvt. Ltd. B/321, Jalandhar, Punjab." The biscuit company has set up its own consumer service and grievance cell to promote and protect the following right : (A) Right to Safety (B) Right to be Heard (C) Right to be Informed (D) Right to Consumer Education

The package of KRM Rawa Idli Mix describes the procedure of cooking idlis in three easy steps. It also specifies its ingredients, instructions for storage and serving. The function performed by the label in the above case is : (A) Describing the product and specifies its contents. (B) Identification of the product or brand. (C) Helping in promotion of products. (D) Providing information required by law.

Arnav has recently started a business to sell computers. He hired a shop in Nehru Place in New Delhi, where he assembles various components to make computers and supplies them as per order. He performs a series of composite but separate functions simultaneously and ensures that computers are delivered in time as per order. These functions are performed by all managers at all times. The feature of management highlighted above is : (A) Management is a continuous process. (B) Management is pervasive. (C) Management is dynamic. (D) Management is a group activity.

Vaibhav Sharma was working as the Production Manager in Crescent Pharmaceuticals Pvt. Ltd. To get his son admitted in school he wanted to take leave from the office but on the same day, an important meeting with the Chief Executive Officer (CEO) of the company was scheduled to discuss about some new medicines to be manufactured. Considering the significance of the meeting, he did not take leave. The CEO appreciated his exemplary behaviour as he gave priority to organisational interest over his personal interest. Name and explain the principle of management being followed by Vaibhav Sharma in the above case.

Explain the following as significance of 'organising' function of management : (a) Benefits of specialisation (b) Clarity in working relationships (c) Development of personnel OR Explain the following types of plans : (a) Objectives (b) Strategy

Explain the following steps in the process of staffing : (a) Performance Appraisal (b) Promotion and Career Planning (c) Compensation

'Stay Fit', a probiotic drink was launched in the market by Dabal India Ltd. and is available in various cities across the country. Doctors are recommending it as it is very useful for the stomach. The company is also using various tools to inform and persuade customers about its product. It has recently started free distribution of its samples to encourage the customers to know about its benefits to buy this probiotic drink in future. The company has also appointed a large number of salespersons, who contact the prospective buyers and communicate with them to make sales. This way, the company is able to develop personal rapport with its customers. In order to create awareness and to increase its popularity among school children, it also organises workshops for students and teachers. It also arranged visits of students and teachers to the factory to create awareness about the standards of hygiene adopted in processing and packaging, etc. This helps the company to build a positive image of its product in the society. This way, the company is using a combination of communication tools to inform and persuade customers about their firm's product. Identify and explain these tools.

The Government of India, in an effort to eliminate plastic waste, imposed a nationwide ban on single-use plastic. The ban would most likely target plastic cutlery, straws, cups and glasses. As a result of this ban, the businesses have been forced to change their practices. 'Viman Airlines' decided to stop giving small water bottles on its flights. Various firms have come up in the country that are making biodegradable plastic out of starch, wheat hay or petrochemicals. Thus competition in this upcoming industry is immense. Businesses are also focusing on developing techniques to produce alternatives for plastic bags. 'Carlos Technologies Ltd.', a leading engineering company, has planned to design and deliver hi-tech machines that can scale up production of bags made from newspaper to replace plastic bags. Many companies are placing orders for such machines. This has added challenges before smaller firms making paper bags. In various enterprises, employees are being trained to operate such hi-tech machines. This will provide human resource with higher competence. Customers have also become more demanding due to increased awareness and are forcing sellers to adopt bags which are not made of plastic. Identify and explain the impact of the above Government policy on Business and Industry.

Alka is working in the Accounts Department of 'Modern Locks Ltd'. Her mother is not well and to attend to her she wanted to take leave for one week. For this, she went to the Senior Accountant, Manoj and discussed her problem. At that time Manoj was simultaneously checking the Balance Sheet of the company. Since his mind was preoccupied in some work, he did not listen to Alka attentively and could not understand her problem. Alka was quite disappointed with the behaviour of Manoj. (a) Identify the type of communication barrier discussed above. (b) Also explain any three barriers of the same type.

Explain any five characteristics of coordination. OR Is management a profession ? Explain.

State any five benefits of training to the organisation. OR State any five duties that are performed by human resource personnel.

Sun Industries Ltd. is a leading company in India which manufactures steel. Its plants are located in Jamshedpur and Bokaro. Currently it produces about three million tonnes of saleable steel. Since the demand for steel is growing, it is planning to increase the capacity of its steel plants. It is estimated that this will require ₹1,800 crore of fixed capital and ₹200 crore of working capital. To raise funds, the company is considering whether it should issue equity shares or ₹2,000 crore of 7% debentures. Currently the company's capital structure comprises only equity. The Finance Manager suggested that since the stock markets are undergoing a bearish phase, the company should issue debentures. (a) Is it justified to raise funds by issuing debentures ? Give reason in support of your answer. (b) Explain the impact of issue of debentures on the risk faced by the company. (c) Explain the impact of 'cost of debt' and 'cost of equity' on the capital structure of the company. (1+2+2=5) OR From last many years, in the month of November, due to a sudden rise in pollution level in Delhi and other parts of northern India, there has been an increase in the demand for air-purifying equipment. Inderprastha Technologies Ltd., which manufactures air-purifying equipment, wants to take advantage of this opportunity and wants to increase its investment in raw material (stock). It is expected that this decision will increase the rate of profitability of the business. Due to this reason many competitors have recently entered this industry. To increase sales, the company has started selling air-purifying equipment on liberal credit terms. This is not affecting the company's profits since the production cycle of the product is short. Identify and state any two factors which 'Inderprastha Technologies Ltd.' will keep in mind before deciding its working capital requirements. Also state three other factors which should be kept in mind by a company while deciding working capital requirements.

InfoMed Ltd. is a growing IT firm which is rapidly increasing its market share. It has recently been awarded 'The Best Organisation to Work in India - 2019' and is in great demand among job-seekers. In this company, the top management has clearly determined the rules and procedures to be followed by employees. There is no ambiguity in the role that each member has to play, since duties have been specified. At lunch break, all employees of the organisation gather together in the canteen. This time is much awaited by every employee since it gives them an opportunity to share their feelings with others. This leads to the success of the organisation. (a) Identify and explain the types of organisation discussed in the above situation. (b) State two advantages of each type of the organisation identified in (a) above which have not been discussed in the above paragraph. OR 'Good Looks Ltd.' are the manufacturers of cosmetics. The company was enjoying a pre-established position in the business and had grown in size. Till recently the company had been doing good business; but after the entry of competitors the market share of 'Good Looks Ltd.' has declined. One reason for this is that all decisions are taken by the higher management. This has resulted in the concentration of the decision-making process at the apex of the management hierarchy. Worried about the decline in market share and profit, the company appointed 'Structures Consultants India Ltd.' as a consultant to suggest improvements in the organisation's decision-making process. The consultant suggested that decision-making responsibilities should be divided among hierarchical levels. They said that if decision-making authority is shared with the lowest levels and consequently placed near the point of action, it would help in quick decision-making and this would help the company adapt to dynamic operating conditions. They said that dispersal of authority propagates the belief that people are competent, capable and resourceful and can assume the responsibility of effective implementation of their decisions. (a) Identify the concept on the basis of which 'Structures Consultants India Ltd.' gave their suggestions to 'Good Looks Ltd.'. (b) Explain any four points of importance of the concept identified in (a) above.

Give the meaning of 'Controlling'. Explain the steps in the process of controlling. OR Give the meaning of 'Directing'. Explain the points that highlight the importance of directing.

After completing his studies, Mahesh started working in a Non-Governmental Organisation (NGO) as an Administrative Officer. This organisation is engaged in activities related to consumer welfare. One day when his mother returned home after shopping, she gave him the mixed fruit juice which she had bought. After consuming the juice, Mahesh started feeling uneasy. On checking, he found that the juice packet purchased was without an FPO mark. He realised that there is a strong need to educate consumers about the role of NGOs before buying any good or service. State any six functions which the NGOs can perform to impart knowledge and educate consumers.