CBSE Sample Papers for Class 12 Business Studies Paper 1 are part of CBSE Sample Papers for Class 12 Business Studies Here we have given CBSE Sample Papers for Class 12 Business Studies Paper 1.
CBSE Sample Papers for Class 12 Business Studies Paper 1
|Sample Paper Set||Paper 1|
|Category||CBSE Sample Papers|
Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 1 of Solved CBSE Sample Papers for Class 12 Business Studies is given below with free PDF download solutions.
Time: 3 Hours
Maximum Marks: 80
(i) Answer to questions carrying 1 mark may be from one word to one sentence.
(ii) Answer to questions carrying 3 marks may have about 50 to 75 words.
(iii) Answer to questions carrying 4 – 5 marks may have about 150 words.
(iv) Answer to questions carrying 6 marks may have about 200 words.
(v) Attempt all the parts of a question together.
Workers are always unwilling to take up any kind of work in Alpha Studios. Due to rise in demand, the firm wants them to co-operate to meet pending orders. Suggest which element of directing is suitable for this situation?
Divij is a chief manager in a company using highly sophisticated machines and equipments. He wants that every employee should be fully trained before he operates the machines or the equipments. Suggest the best method of training that Divij can use for the training of the employees.
What do you understand by ‘Management of work’?
“Due to demonetisation, country moved one step towards digitalisation.” In this context, which concept of digitalisation came out to be very successful?
‘Wear Me’, a clothes manufacturing company of the ladies segment is facing the problem of declining market share due to increased competition. The company with a view to regain its market share, decide to introduce a premium range of women wear to target the upper segment of society. Which type of plan has the company prepared? Name it.
Control should focus on Key Result Areas, (KRAs) which are critical for the success of an organisation. For this, what type of control should be administered?
State one advantage of functional structure.
Kamakshi purchased a face wash. The label contained no information regarding its usage or the type of skin it was suitable for. On using the face wash, she faced the problem of redness and itching on her face. She contacted the customer care only to be informed by them that the face wash was not suitable for oily skin, which was Kamakshi’s skin type. Which right of Kamakshi is violated by the company?
“To manage is to forecast and plan, to organise to command, to coordinate and to control,” enunciated by Fayol. Comment.
Explain any three positive effects of liberalisation and globalisation on business and industry.
Himanshu purchased a new car from ‘Galaxy Motors’ for ₹25 lakh. He was offered free insurance for the first year and three free servicing to be availed after the car had covered 5,000 km, 10,000 km and 15,000 km respectively. When Himanshu took the car for the first free servicing, he was told that the car was not new and first service had already been availed on this car. He felt cheated and filed a complaint in the State Commission. Being not satisfied with the decision of the State Commission, he decided to file and appeal against it after two months.
Can Himanshu appeal against the decision of the State Commission? Give reason in , support of your answer.
To avoid the problem of shortage and surplus of funds what is required in financial management. Name the concept and explain any four points of its importance.
What do you understand by dematerialisation of securities and demat account?
Mohit runs a shoe manufacturing factory. He wants to expand his business. For expansion, he contemplated to enter into the manufacturing of leather bags and western formal wear apart from the running business of shoes. By doing this, his company will be able to provide many products to working women under one roof. Which organisation structure will you suggest him and why?
Rajat had opened an internet cafe in the 90’s to cash in on the boom of the internet. In the initial years he got good profits. This made him carefree and he started taking his success for granted. But lately for the last few years, he is finding it difficult to even bear the expenses of his cafe, leave alone earning profits.
- Which aspect or feature of business environment has Rajat ignored?
- What changes in the macro environment has affected his business?
‘A stock exchange is an institution which provides a platform for buying and selling of existing securities.” Do you agree with this statement? Explain two functions of stock exchange.
“Management is the systematised body of knowledge that explains certain general truths.” Explain the statement by giving four reasons to support your answer.
“Planning leads to rigidity and reduces creativity.” Explain this statement.
Arnav is the production manager of Technomart Corporation. Due to heavy demand of the company’s product and excessive load on production department, Arnav delegated part of his authority and work to his subordinate supervisor. Since, the supervisor was not proficient in handling the work, work quality degraded resulting in poor quality output. Thereafter, the manager is of the view that he is not responsible for the quality of work, as he has delegated responsibility to his subordinate. Do you agree with his view point? Justify your answer by giving proper arguments. Also, identify the values being violated in this case.
As a well informed customer, what kind of quality certification marks you will look for before buying products? Also, state any two values which quality certification marks indicate.
“Selection is a negative process,” do you agree? Differentiate between recruitment and selection on any two basis.
Daksh Ltd requires an investment of ₹60,00,000 to earn Earning Before Interest and Tax (EBIT) of ₹8,00,000. In order to raise ₹60,00,000, there are two proposals:
⇒ 6,00,000 equity shares of ₹10 each
⇒ Rate of tax = 20%
⇒ 4,00,000 equity shares of ₹ 10 each
⇒ 10% ₹20,00,000 debentures
⇒ Rate of tax = 20%
Which proposal, if accepted, would ensure better earnings for the shareholders? Decide on the basis of Earning Per Share (EPS).
What are the common barriers to effective communication? Suggest measures to overcome them.
ABC is a leading publication company of the country. The company’s objective is to provide ‘error-free’ books for the students. But the company’s production department is plagued with many shortcomings.
The authors are not given accurate parameters, constant changes are made in the instructions given to the coordinators and last minute irrelevant additions are made in the text. All these leads to wastage of resources and the company’s objective is also not achieved and the revenues are also falling. The company has recruited a new production manager, replacing the old one. The new production manager identified the need for that function of management in which actual performance is compared with planned performance.
(i) Identify the function of management discussed above.
(ii) State the steps necessary to install that function in the organisation.
Suhani has started her business of readymade garments. She manufactures clothes for infants. She uses only the best quality cloth and decides to charge only the minimum possible for her products. Her aim is to provide premium clothing range for the middle-income group. Being new to business, she seeks the help of her uncle, Mr Anil, who is a chartered accountant, to help her fix the price of her product so that she is able to meet the above objectives.
(i) Explain the factors to be considered while fixing the price of a product.
(ii) Explain to Suhani the concept of price mix.
(iii) State any one method of pricing.
Motivation is the element of directing, suitable for the given situation.
Vestibule training method would be appropriate as the employees would be handling sophisticated and expensive machines.
Management of work is concerned with performance of various activities/tasks in an organisation, e.g. manufacturing a product in a factory, treating patients in a hospital, etc.
In this age where almost every person uses mobile phones, the concept of online wallets came out to be very successful.
The type of plan that the company preparing is ‘strategy’.
Critical point control should be administered ot focus on Key Result Areas (KRAs).
One advantage of functional structure is that it promotes control and coordination within a department.
The right violated by the company is ‘Right to be Informed’. Under this right, the consumer has a right to have complete information about the product, i.e., its ingredients, date of manufacture, date of expiry, price, quantity, direction for use, etc.
This statement states that management is a continuous process because it involves a series of inter-related functions or elements to achieve stated objectives through the effective utilisation of human and material resources. It consists of setting the objectives of an organisation and taking steps to achieve these objectives. The management process includes planning, organising, staffing, directing and controlling functions.
The positive effects of liberalisation and globalisation on business and industry are:
- It provides world class technology.
- Export became matter of survival.
- Buyer’s market increases in production capacity.
- Employment opportunity increases.
- It helps in increase inflow of foreign capital.
- Removal of restrictions enables the firm to decide the price of goods and services.
No, Himanshu can not appeal against the decision of State Commission in the National Commission under the Consumer Protection Act, 1986. Appeals against the order of State Commission can be filed in National Commission within 30 days of the passing of the order and in this case, Himanshu decided to file appeal against the decision of State Commission after 2 months.
Financial planning is required to avoid the problem of shortage and surplus.
It is important because:
- It tries to link the present with the future.
- It helps in avoiding business shocks and surprises.
- It helps in coordinating various business functions.
- It helps in forecasting what may happen in future under different business situations.
To eliminate the problems of theft, forgery, transfer, delays and time involved in paper work, an electronic book entry system for holding and transferring securities have been introduced. This is referred to as dematerialisation of securities.
Dematerialisation is the process by which physical share certificates are converted to an equivalent number of securities in electronic form. Shares once converted into dematerialised form are held in a demat account. Demat account is an account which enables Indian citizens to trade in listed securities in electronic form.
I would suggest the divisional organisation structure. This structure will be suitable as it provides equal importance to all products.
Advantages of divisional organisation structure are as follows:
- Decisions are taken much faster in divisional structure.
- It facilitates expansion and growth as new divisions can be added without interrupting the existing operations.
- It leads to specialisation of physical facilities and human talent.
- Rajat failed to consider that business environment is dynamic.
It is right to say that business environment is dynamic because everyday new changes are taking place in the business environment. For the survival of the company, it is necessary to scan or recognise these changes from time-to-time.
- Rajat has been affected by the technological changes taking place in the macro environment. With the advent of cost-cutting technology and the introduction of laptops, tablets and smart phones, people can assess the internet easily from their personal gadgets. So, the business of internet cafes have suffered.
Yes, I agree with this statement.
Following are the two functions of stock exchange:
- Providing Liquidity and Marketability to Existing Securities The main function of a stock exchange is the creation of ready market where securities are bought and sold. It gives investors the chance to disinvest and reinvest. This provides both liquidity and easy marketability to already existing securities in the market.
- Pricing of Securities Share prices on a stock exchange are determined by the forces of demand and supply. A stock exchange is a mechanism of constant valuation through which the prices of securities are determined. Such a valuation provides important instant information to both buyers and sellers in the market.
The given statement indicates that management is a science.
Points that validate management is a science are as follows:
- Management has systematised body of knowledge.
- Some of the management principles are universal in nature.
- Management principles are also derived after continuous observations.
- In science, replication is possible but in management, it depends upon the situation.
By the explanation, we can conclude management satisfies most of the features of science, but still it is not considered as a perfect science, rather it is an inexact science.
“Planning leads to rigidity and reduces creativity,” this statement can be explained as follows:
- Planning Leads to Rigidity In an organisation, a well-defined plan is drawn up with specific goals to be achieved within a specified time frame. These plans decide the future course of action and managers may not be in a position to change it. This leads to rigidity in plans, which might create a problem in a dynamic environment.
- Planning Reduces Creativity Plans are usually formulated at the top level and middle and lower level managers are expected to follow them. Therefore, much of the initiative and creativity inherent in them gets lost. They are not allowed to take any initiative to make changes in the plans as per the changing environment. This reduces creativity in them.
I do not agree with the viewpoint of the manager, as authority can be delegated, but responsibility cannot be delegated by a manager. The manager remains responsible to his own superior for the tasks which he may have assigned to his subordinate.
In other words, the manager cannot escape from his responsibility for any default or mistake on the part of his subordinates. The process of delegation does not relieve the manager from his own responsibility.
Values that are violated in this case are:
- Efficient use of resources
As a well informed customer, following quality certification marks should be checked before buying products:
- ISI It is related to consumer durable products.
- Hall Mark It is BIS certification scheme on gold jewellery items.
- Wool Mark It signifies 100% pure wool.
- FPO It contains specification and quality control requirements regarding the production and marketing of processed vegetables and fruits, etc.
- AGMARK It is a grade standard for agricultural commodities and live stock products.
Values highlighted here, are:
- Consumer awareness
- Quality and purity
Selection is a negative process, as it is choosing from among the candidates, the ones who best meet a position’s requirements and eliminating the ones who are not suitable. To achieve this target, candidates are required to take a series of tests and interviews in different stages. At each stage, many candidates are eliminated and only a few candidates move to the next stage.
The process of elimination continues till the most suitable candidates are finalised. The above scenario clearly establishes the fact that selection is the process through which unsuitable candidates are rejected and suitable ones are chosen. Therefore, it is regarded as a negative process.
Difference between recruitment and selection are:
|Meaning||It is the process of stimulating people to apply for a vacant job position in the organisation.||It is the process of selecting the best candidate from those who have applied for the job.|
|Objective||The objective of recruitment is to create a pool of eligible candidates for the purpose of selection.||The objective of selection is to get the best candidate selected for the job.|
Earning per share will be more, if proposal B is accepted.
The common barriers to effective communication and measures to overcome them are tabulated below:
|Barriers to Effective Communication||Suggested Remedies|
|(i) Premature Evaluation Communication is likely to fail if the receiver evaluates the meaning of the message before the sender completes the message.||Clarify the Idea before Communicating The message to be conveyed should be clear in all aspects.|
|(ii) Badly Expressed Message Use of wrong words or omission of necessary words results in badly expressed message.||Be Aware of Language, Tone and Content The language, tone and content used must be understandable to the receiver.|
|(iii) Lack of Attention When the receiver’s mind is preoccupied, he fails to understand what is being said.||Be a Good Listener Attentive and patient listening helps in understanding and retaining the message.|
|(iv) Lack of Organisational Facilities Meetings, suggestion box, etc are absent in the organisation.||
Improvement in Organisational Facilities Meetings, suggestion box, complaint box, etc should be made as an integral part of the working in the organisation.
(i) Controlling is the function of management which compares actual performance with standard performance and suggests corrective actions in case of deviations.
(ii) It is a systematic process involving a series of steps which are as follows:
(a) Setting Performance Standards The first step in the controlling process is to set up the performance standards. Standards are those criteria, on which the actual performances are measured. These standards serve as a benchmark towards which an organisation strives to work.
(b) Measurement of Actual Performance After the establishment of standards, the next step is measuring the actual performance with the set standards. This can be done with the help of several methods like personal observation, sample checking, performance reports, etc.
(c) Comparison of Actual Performance with Standards In this step, the actual performances are compared with the established standards. Such comparisons reveal the deviation between planned and actual results.
(d) Identifying and Analysing Deviations At this stage, acceptable and non-acceptable deviations are analysed while focusing on:
- Critical Point Control It means keeping focus on key result areas where deviations are not acceptable and it should be attended on priority basis.
- Management by Exception It means if a manager tries to control everything, he may end up in controlling nothing. Thus, he should first handle the significant deviations on priority.
(e) Taking Corrective Action The most important step in the controlling process is taking corrective actions. After the deviations and their causes are analysed, the task is to remove the hurdles from the actual work plan. The purpose of this step is to bring the actual performance up to the level of expectations by adopting corrective measures.
(i) Suhani should consider following factors while fixing the price of a product:
- Product Cost This is the most important factor, as the marketing firms are interested in fixing the price of a product, in such a manner that it should cover all the costs of production, distribution and earn a margin of profit too.
- The Utility and Demand Firstly, the buyer must be ready to pay up to the point where the utility from the product is at least equal to the sacrifice made in terms of the price paid.
Secondly, the price of a product affects the elasticity of demand as demand is having an inverse relationship with price. Thus, these two things must be kept in mind while fixing the price.
- Extent of Competition in the Market Price is settled in the market by the nature and degree of competition. The price tends to be higher when there is a lesser degree of competition and are lower when there is free competition.
- Government and Legal Regulations In order to protect the interest of consumer against unfair practices in the field of price fixing, Government should regulate the price of essential goods.
(ii) Price mix refers to important decisions which are related with the fixing of price of a commodity.
(iii) One method used for pricing is cost-plus method.
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