CBSE Class 12 Business Studies 2024 — Set 66/2/1

Sudha and Shweta were twin sisters. After completing their education from college, they decided to start a business. As they were Commerce students, they knew the importance of deciding in advance 'what to do' and 'how to do'. It was very challenging for them as this decision was to guide all their future actions. While discussing the same with their mother, they got a new idea of starting a 'Cloud Kitchen'. Both the sisters were very excited to start this. The idea took the shape of a concrete plan and within a month, they were successful in starting their 'Cloud Kitchen.' Identify the point of importance of planning highlighted in the above case : (A) Planning reduces the risk of uncertainty. (B) Planning promotes innovative ideas. (C) Planning establishes standards for controlling. (D) Planning reduces overlapping and wasteful activities.

Match the Marketing Management philosophies given in Column I with their main focus given in Column II : Column I : 1. Production concept 2. Product concept 3. Marketing concept 4. Societal marketing concept Column II : (i) Customers' needs (ii) Quality, performance and features of product (iii) Customers' needs and societal well-being (iv) Quantity of product Choose the correct option from the following : (A) 1-(i), 2-(ii), 3-(iii), 4-(iv) (B) 1-(ii), 2-(iii), 3-(i), 4-(iv) (C) 1-(iv), 2-(ii), 3-(i), 4-(iii) (D) 1-(ii), 2-(iv), 3-(i), 4-(iii)

Read the following statements : Assertion (A) and Reason (R). Choose the correct alternative from those given below : Assertion (A) : Decentralization is an optional policy decision. Reason (R) : It is done at the discretion of the top management. Alternatives : (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (C) Assertion (A) is true, but Reason (R) is false. (D) Assertion (A) is false, but Reason (R) is true.

Sushant was an able Project Manager at 'Keiro Ltd.' Sushant's Head, Naveen handed over a new project to Sushant. Sushant already had enough work in hand. So, Sushant decided to divide the work assigned to him, among three of his subordinates. He himself kept that part of the work which he himself could perform effectively and got his subordinates to help him with what remained. The project got completed well in time because of this. The concept of management used by Sushant to complete the project was : (A) Delegation (B) Decentralization (C) Accountability (D) Authority

'Lack of confidence of superior in his subordinates' is one of the barriers of communication. Identify the communication barrier : (A) Personal barrier (B) Psychological barrier (C) Semantic barrier (D) Organizational barrier

'A public issue of equity may reduce the management holding in the company and make it vulnerable to takeover. This factor also influences the choice between debt and equity, especially in companies in which the current holding of management is on a lower side.' The factor affecting choice of capital structure discussed in the above case is : (A) Flexibility (B) Cost of debt (C) Cost of equity (D) Control

Statement I : Controlling ensures that activities in an organization are performed as per the plans. Statement II : Controlling function of a manager is a pervasive function. Choose the correct option from the options given below : (A) Statement I is true and Statement II is false. (B) Statement II is true and Statement I is false. (C) Both the Statements are true. (D) Both the Statements are false.

'Lens-o' was started as an online eyewear company selling glasses and contact lenses on their website. Recently, it set up a uniquely designed offline store, so that customers can also buy their products from the company showroom. Which channel of distribution is used by the company : (A) Zero level channel (B) One level channel (C) Two level channel (D) Three level channel

Sunita opened her travel agency named 'Sunita Travels' in July, 2023. She created separate departments for reservations, hotel bookings, online queries and payment handling. Which organisation structure is used by Sunita : (A) Functional structure (B) Divisional structure (C) Informal structure (D) Vertical structure

'JKSD India Ltd.' recently introduced a new range of 'fresh from kitchen' jams, ketchups, salad dressings and peanut butter, etc. They appointed salespersons to contact prospective customers in leading malls to create awareness about their products and develop product preferences with the aim of making sales. Which tool of promotion is being used by 'JKSD India Ltd.' to market its products : (A) Advertising (B) Personal Selling (C) Sales Promotion (D) Public Relations

The selection tests which are used to measure individual's potential for learning new skills are called : (A) Aptitude Tests (B) Intelligence Tests (C) Personality Tests (D) Interest Tests

A name, term, symbol, design, or some combination of these, used to identify the products, goods or services of one seller or group of sellers and to differentiate them from those of the competitors is known as : (A) Brand (B) Trade Mark (C) Brand Name (D) Brand Mark

'Increase in profit earned by equity shareholders due to the presence of fixed financial charges like interest' is referred to as : (A) Capital structure (B) Financing decision (C) Return on Investment (D) Trading on equity

Which of the following is not a feature of marketing : (A) Needs and wants (B) Storage and warehousing (C) Customer value (D) Creating a market offering

Piyush is the Production Manager of a shoe company called 'Comforty'. He has 1000 workers working under him in his department. Piyush booked a special order for 300 pairs of gents shoes at an estimated cost price of ₹ 500 per pair plus 20% profit margin. The order is to be completed within 10 days. After completion of the order, Piyush found out that the production cost of one pair of shoes was ₹ 600. He tried to find out the reason, but he couldn't. He reported it to the Chief Executive Officer. The Chief Executive Officer appointed Abhay to find out the cause. Abhay was not only a specialized Cost Accountant, but also a qualified Human Resource Manager. After two days, Abhay reported that the set targets could be completed with the help of only 800 workers, which revealed that there was overmanning in the organization. The organization was not utilizing the human resources optimally, which had led to higher labour cost. The above case highlights one of the points of importance of an important function of management. (i) Identify the function of management. (ii) State any two points of importance of the function of management identified in part (i), except the one discussed in the above case.

(a) Explain any three points of importance of 'Controlling' function of management. OR (b) Explain the relationship between 'Planning' and 'Controlling' functions of management with the help of any three points.

After studying Entrepreneurship in Class XII, Neel completed a baking course and started a bakery, 'Cakes and Bakes'. He set a target of earning a modest 10% return on investment in the first year. As he was supplying healthy bakery products, the demand kept increasing. 'Cakes and Bakes' became a famous bakery in a year. He now wanted to develop a plan to define the direction and scope of 'Cakes and Bakes' for the long run. He made a marketing plan to decide if he could charge higher price to improve his return on investment, how to advertise the products, etc. Quoting lines from the above paragraph, identify and explain two types of plans discussed in the above case.

'Inaya Ltd.' is a multinational technology company focusing on artificial intelligence, online advertising and search engine technology. The company is generating good profits and takes care of the well-being of its staff. The company offers benefits like car allowance, medical aid and allowance for children's education to all employees above the Manager's level. It regularly contributes towards the Employees' Provident Fund and pays gratuity on retirement to its employees. Under a special incentive scheme, the employees are offered shares of 'Inaya Ltd.' at a set price which is lower than the market price. Each year, the company keeps aside funds to pay one percent of base salary as bonus to its employees. No wonder 90% of the employees would recommend working at 'Inaya Ltd.' to a friend. Explain four incentives being provided by 'Inaya Ltd.' to motivate their employees for better performance.

(a) Explain 'Vestibule Training' and 'Apprenticeship Programme' as methods of training. OR (b) State any four advantages of internal sources of recruitment.

(a) Explain the following factors affecting the requirements of fixed capital : (i) Scale of operations (ii) Financing alternatives OR (b) Explain the following factors affecting dividend decision : (i) Cash flow position (ii) Growth opportunities

Ashwin was a fashion designer. On losing his job, he decided to sell the designer clothes online under the brand name 'Kogue'. The garments were made of good quality fabric with intricate designs and skilled craftsmanship, making them expensive to produce. Realizing that the online market is very competitive, he decided to charge a reasonable price for the garments. The price would cover the cost of production and sale of garments as well as give him 10% margin over and above the cost. Identify and explain two factors affecting the price determination discussed in the above case.

'VBR Cinema', an Indian multiplex cinema hall was the first to recognize the change in consumption habits of people. It changed its food menu from burgers, pizza, soft drinks, etc. and switched over to healthier options like salads and smoothies, soups and anjeer-based sweets. Within a month, the revenue of the multiplex from sale of food items doubled. 'VBR Cinema', by continuously monitoring the environment and adopting suitable business practices, was able to improve its revenues and profits and was hopeful that it will continue to succeed in the market in the long run too. Identify and explain one dimension of business environment and one point of importance of understanding the business environment highlighted in the above case.

Nalini has an online flower and gifts retail business. She has eight outlets in four cities of India. From November to February, during the wedding season, the demand shoots up. She coordinates the efforts of her staff in a conscious and deliberate manner and plans for the wedding season demand in the month of June itself. She ensures that there is adequate workforce and continuously monitors whether work is proceeding according to plans. She also briefs the marketing department in time to prepare their promotional and advertising campaigns. Thus, her coordination with all departments of the organization begins at the planning stage and continues till controlling. This acts as a binding force between the departments and ensures that all action is aimed at achieving organizational goals. As a result, Nalini is able to give a common focus to group effort to ensure that the business is performing as planned, year after year. Quoting lines from the above paragraph, identify and explain four features of an important concept of management highlighted in the above case.

(a) Explain the following principles of Scientific Management : (i) Science, Not Rule of Thumb (ii) Harmony, Not Discord (iii) Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity OR (b) Explain the following points of significance of principles of management : (i) Providing managers with useful insights into reality (ii) Scientific decisions (iii) Fulfilling social responsibility

(a) Differentiate between 'Formal Organization' and 'Informal Organization' on any six bases. OR (b) Explain any four points of importance of 'Planning' function of management.

Ashish wanted to purchase one LCD TV for his home. He decided to go to various stores selling electronic items to check the available varieties of different brands. One of his friends took him to a manufacturer selling LCD TV at almost half the price. The manufacturer described its various features and insisted that Ashish buys the LCD TV from him. Seeing the features, Ashish decided to buy the TV from him, even when the TV was not having any standardisation mark on it. When Ashish asked for the cash memo, the manufacturer discouraged him, saying that it will attract additional tax. He further told Ashish not to worry and promised that if there would be any problem with the TV, he would replace it immediately. The TV started malfunctioning within a month and Ashish asked for its replacement. The manufacturer refused to replace the LCD TV, telling him that the problem is due to mishandling of the TV. Ashish decided to file a complaint in the Consumer Court against the manufacturer. (i) Identify and explain two consumer rights discussed in the above case. (ii) State two consumer responsibilities that Ashish did not fulfil while buying the LCD TV.