Class 12 Business Studies Sample Paper Term 1 Set C

Please refer to Class 12 Business Studies Sample Paper Term 1 Set C with solutions below. The following CBSE Sample Paper for Class 12 Business Studies has been prepared as per the latest pattern and examination guidelines issued by CBSE. By practicing the Business Studies Sample Paper for Class 12 students will be able to improve their understanding of the subject and get more marks.

CBSE Class 12 Business Studies Sample Paper for Term 1

1. Poonam is using environmental friendly methods of production. She is trying to achieve ……… objective of management.
(a) social
(b) organisational
(c) personal
(d) economical

2. Planning requires logical and systematic thinking rather than guess work or wishful thinking. Identify the related feature of planning.
(a) Planning is futuristic
(b) Planning is a mental exercise
(c) Planning establishes standards for controlling
(d) Planning focuses on achieving objectives

3. Marketing is called a ……… process because it involves interaction of buyers and sellers.
(a) economic
(b) social
(c) legal
(d) political

4. Irfan and Naseeruddin, both got training from National School of Drama, New Delhi but they perform differently. Which feature of art is associated with the above fact?
(a) Based on practice and creativity
(b) Universal validity
(c) Existence of theoretical knowledge
(d) Personalised application

5. If marketing manager allows the sales executive to grant 25% discount where as finance manager instructs not to offer more than 15% discount then sales executive will be confused due to the lack of ……… .
(a) unity of direction
(b) unity of command
(c) discipline
(d) equity

6. Guneet went to a shop and expressed her desire to buy a copper water bottle only of Prestige company. Identify the component related to branding being described in the above case.
(a) Trademark
(b) Generic name
(c) Brand name
(d) Brand mark

7. Management is considered important because
(a) it helps an organisation to adapt to the changes.
(b) seeks to integrate individual efforts.
(c) it helps in development of the society.
(d) All of the above

8. In order to promote green initiative, Basak Limited has started using eco-friendly packaging containing plantable seeds. What is being marketed in the given case?
(a) Information
(b) Place
(c) Idea
(d) All of these

9. ……… coordinates human efforts, assembles resources and integrates both into a unified form to be utilised for achieving specified objectives.
(a) Management
(b) Planning
(c) Organising
(d) Directing

10. ……… are the anticipated environments in which plans are expected to operate.
(a) Planning premises
(b) Forecasting
(c) Objectives
(d) None of these

11. Organising is a process by which the manager
(a) establishes order out of chaos.
(b) removes conflict among people over work or responsibility sharing.
(c) creates an environment suitable for teamwork.
(d) All of the above

12. Planning involves thorough examination and evaluation of each alternative and choosing the most appropriate one. Identify the feature of planning from above statement.
(a) It planning is pervasive
(b) It is a mental exercise
(c) It is continuous process
(d) It involves decision-making

13. Which of the following can be marketed?
(a) Red cross society persuading to donate blood
(b) Kerala tourism persuading people to visit Kerala for health tourism
(c) Political parties persuading to vote for a particular candidate
(d) All of the above

14. Understanding of business environment helps the firm to identify opportunities to get the ……… .
(a) early warning signals
(b) first mover advantage
(c) dynamic nature
(d) None of these

15. ……… concept of marketing emphasises on affordability and easy availability of the products.
(a) Product concept
(b) Selling concept
(c) Marketing concept
(d) Production concept

16. Planning is the most challenging activity for the management as ……… .
(a) it guides all future actions leading to growth and prosperity of the business
(b) specific goals are set out in the plans along with the activities to be undertaken to achieve the goals
(c) if there is no planning, employees would be working in different directions and the organisation would not be able to achieve its desired goals
(d) None of the above

17. VK Limited company is dealing in glassware products. Over the years, the company has established high reputation for itself because of its high quality products.
Consequently the customers have become habitual of the brand and do not mind paying a little higher for it. Identify the concept being described in the given case.
(a) Differential pricing
(b) Product differentiation
(c) Functional utility
(d) Environmental variable

18. Which of the following does not characterise the business environment?
(a) Uncertainty
(b) Complexity
(c) Relativity
(d) None of these

19. Fayol’s principle of division of work can be applied to ……… kind of work.
(a) technical
(b) managerial
(c) Both (a) and (b)
(d) None of these

20. ……… is defined as the framework within which managerial and operating tasks are performed.
(a) Span of management
(b) Organisational structure
(c) Informal organisation
(d) None of these

21. For the following two statements, choose the correct option.
Statement I Social marketing concept is followed generally by marketers, in present time.
Statement II Production concept is used where demand is more than supply.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect

22. Even though the political conditions vary from country to country, they impact the sentiment of an investor in the business, if the instability of the political conditions cause uncertainty and make it difficult for him to predict the future. Which feature of the business environment is being highlighted in the above statement?
(a) Specific and general forces
(b) Dynamic nature
(c) Relativity
(d) All of these

23. After completing a course in journalism, when Vidhu joined a publication company, she was assigned a challenging media coverage project by her superior. This helped to boost her self-esteem and improve her confidence from day one. Identify the point of importance related to the concept being described in the above lines.
(a) It facilitates the growth of an organisation
(b) Motivation of employees
(c) It facilitates better coordination
(d) All of the above

24. According to Taylor, “each specialist is to be assigned work according to his/her qualities, the employees who possess technical mastery should be involved in planning work whereas those with energy and good health may be assigned execution work.” Name the related principle of scientific management.
(a) Functional foremanship
(b) Science, not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) None of the above

Section B

25. Ritika Singh is working as the C.E.O. in a company. She lays a special emphasise on the
fact that the company continues to always have sweet relations with its customers.
Besides, to have a close eye on the business environment, she considers as the secret of any business. Recently, she noticed that the government was preparing a policy to invite the foreign companies. The government planned to give them several concessions. Miss Singh saw through the government intention and started preparing herself for it. Identify the point of ‘importance of business environment’ from the incident stated above.
(a) It helps the firm in identifying the threats and early warning signals
(b) It enables the firm in identifying opportunities and getting the first mover advantage
(c) It helps in tapping useful resources
(d) It helps in coping with rapid changes

26. Identify the correct sequence of steps of planning process.
(a) Setting objectives, identify alternative courses of action, implementation of plan, evaluation of alternative courses of action
(b) Setting objectives, implementation of plan, evaluation of alternative courses of action, identify alternative courses of action
(c) Setting objectives, identify alternative courses of action, implementation of plan, evaluation of alternative courses of action
(d) Setting objectives, identify alternative courses of action, evaluation of alternative courses of action, implementation of plan

27. “Mr. Bhushan is working as a marketing manager in Swastik Colour TV Ltd. which has 20 per cent of the current market share in the country. He aims at enhancing his market share to 30 per cent, in the next three years. He will have to develop a complete marketing plan covering various important aspects including the plan for increasing the level of production, promotion of the products, etc. and specify the action programmes to achieve these objectives.
Identify the function of management highlighted in the above case.
(a) Marketing planning
(b) Packing and labelling
(c) Product designing and development
(d) Standardisation and grading

28. Assertion (A) Business environment is aggregative in nature.
Reason (R ) Business environment is the sum total of all things external to business firms.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is correct, but Reason (R) is incorrect
(c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(d) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

29. In an organisation, the objective of marketing department is to increase sales by 10% by offering discounts. However the finance department is reluctant to offer discounts as it means loss of revenue. One of the benefits of coordination helped to resolve the conflict. Identify it.
(a) Growth in size
(b) Specialisation
(c) Functional differentiation
(d) Both (a) and (c)

30. Assertion (A) Production mix is the combination of all decisions taken by marketers regarding product.
Reason (R ) Product mix covers only tangible attributes of products.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is correct, but Reason (R) is incorrect
(c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(d) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

31. Josh Enterprises decided to have a meeting of all the key employees of different departments in the organisation. The main motive is to tell the employees to keep the target of 20% increase in sales as the main objective when they work throughout the year. The meeting is full of ideas regarding the employees and processes involved. Various plans are made to harness the potential of the employees and streamline the processes. However with the passage of a few days, the external business environment checks the capability of the organisation to adapt to the situations. The company successfully comes out at the end of the year with flying colours.
What is/are the various characteristics of management you can find highlighted here?
(a) Multidimensional
(b) Goal oriented
(c) Pervasive
(d) Both (a) and (b)

32. ……… can be delegated by using the process of delegation.
(a) Responsibility
(b) Accountability
(c) Both (a) and (b)
(d) None of these

33. According to this principle of scientific management, the employees should be rewarded for their suggestions which results in substantial reduction in the cost.
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
(d) All of these

34. Indigo Limited has a staff of 300 people working in different departments like production department, finance department, technology department, human resource department, etc. Identify the type of organisational structure being followed by the company.
(a) Functional structure
(b) Divisional structure
(c) Informal structure
(d) None of these

35. Which one of the following statements is not correct?
(a) Management is a goal-oriented process
(b) Management is a continuous process
(c) Management is an intangible force
(d) Management is a rigid process

36. A sales manager was required to make a forecast of sales post covid-19 impact for 4th quarter 2020. He considered the sales of 1st quarter and 3rd quarter of current year and previous year. He followed ……… step of planning process.
(a) Setting objectives
(b) Follow up
(c) Developing premises
(d) Identifying alternative courses of action

37. This level of management serves as a link between top level managers and first line managers.
(a) Supervisory level management
(b) Operational management
(c) Middle level management
(d) None of these

38. Within 2 years of it’s inception, Bhavishya Limited has created a very positive reputation about itself and its products in the eyes of general public by participating extensively in various social welfare programmes. Identify the component of promotion mixing described in the given lines.
(a) Advertising
(b) Personal selling
(c) Public relation
(d) Sales promotion

39. Assertion (A) Lower level managers interact with the actual workforce, pass on instructions, supervise their work, maintains quality products, maintain safety standards so on.
Reason (R ) The job of the lower level is complex and stressful, demanding long hours and commitment to the organisation.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is correct, but Reason (R) is incorrect
(c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(d) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

40. ……… is defined as the ability to accomplish something with the least amount of wasted time, money, and effort or competency in performance.
(a) Effectiveness
(b) Efficiency
(c) Management
(d) Coordination

41. For the following two statements, choose the correct option.
Statement I Planning is closely connected with creativity and innovation.
Statement II Before doing something, the manager must formulate an idea of how to work on a particular project.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect

42. ……… principle of management suggest the concept of replacing ‘I’with ‘we’.
(a) Order
(b) Equity
(c) Esprit de corps
(d) None of these

43. With the onset of the thought of producing a thing, the process of ……… starts.
(a) buying
(b) selling
(c) marketing
(d) producing

44. Unique India Ltd. decided to synchronise all the activities of organisation. While deciding what is to be done, when it is to be done, they tried to bring harmony between organisational goal and individual goal. While hiring employees, HR department made sure people with right qualification only joined the organisation and they are paid as per their qualification. Further the directors made arrangement that at the end of every three months, performance of the employees is compared with planned performance so that steps can be taken to check the deviation. Identify the concept of management.
(a) Planning
(b) Staffing
(c) Controlling
(d) Coordination

45. Radha Rani is the C.E.O. of ‘Radhika Sales Pvt. Ltd.’ Besides other managerial activities, she is an expert in planning. While planning for her company, she noticed that at first several options are gathered, then their evaluation is done and finally the most suitable option is selected. Once she faced a problem which had only one alternative available as a solution and to select this very option was her compulsion.
Now, for the first time she realised that the necessity of planning is there only when several options are available. Identify the feature of planning in the event stated above.
(a) Planning is continuous
(b) Planning is futuristic
(c) Planning involves decision-making
(d) Planning is pervasive

46. For the following two statements, choose the correct option.
Statement I Stability of personnel principle said that employee turnover should be minimised.
Statement II Principle of remuneration says that every employee should be paid as per time spend by him in the organisation.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect

47. Harshit is planning a start up a venture for offering mobile pet care services at door step. He has decided to charge ₹ 1,000 for heated hydro bath and blow dry of a pet and ₹ 500 for shampoo and conditioning. Identify the element of marketing mix which is not being described in the above case.
(a) Product
(b) Place
(c) Price
(d) None of these

48. Virat decided to start a desert cooler manufacturing business. He sets the target of earning 20% profit on sales in the first year. He was very much concerned about the future prospects of the business, which were uncertain. For this, he gathered information from the potential market and analysed that the demand for wall mounted coolers is increasing day-by-day. He used this information as the base for future planning. On the basis of the gathered information, he called a meeting in the following week to find new methods to achieve the objective. Identify the next step, which has been followed by Virat that is related to the process of one of the functions of management.
(a) Setting objectives
(b) Evaluating alternative courses
(c) Developing premises
(d) Identifying alternative course of actions

Section C

Direction : – Read the following case study and answer question number 49-54 on the basis of the same.
It is one of the managerial functions that is concerned with defining and grouping the activities of the enterprise and establishing authority relationships among them. Under this function, activities of similar nature are grouped together. This function leads to a systematic allocation of jobs amongst the workforce. This reduces the workforce as well as enhances productivity because of the specific worker performing a specific job on a regular basis. This managerial function provides a framework within which managerial and operating tasks are performed.

49. Which function of management is discussed in the case?
(a) Planning
(b) Organising
(c) Controlling
(d) Directing

50. Identify the importance of managerial function discussed in the given para.
(a) Benefits of specialisation
(b) Clarity in working relationships
(c) Effective administration
(d) Development of personnel

51. Which step of organising is highlighted in the lines, “This function leads to a systematic allocation of jobs amongst the workforce”?
(a) Division of work
(b) Departmentalisation
(c) Assigning duties
(d) Reporting relationship

52. Which step of organising is highlighted in the lines, “Under this function, activities of similar nature are grouped together”?
(a) Division of work
(b) Departmentalisation
(c) Assigning duties
(d) Reporting relationship

53. What type of specialisation is highlighted in the given case?
(a) Product specialisation
(b) Functional specialisation
(c) Both (a) and (b)
(d) None of these

54. “It is one of the managerial functions that is concerned with defining and grouping the activities of the enterprise and establishing authority relationships among them”. Which step of organising is highlighted in the above lines?
(a) Division of work
(b) Departmentalisation
(c) Assigning duties
(d) Reporting relationship

55. ‘Gupta Store’, which is located in the centre of the city is a big shop of the commodities of daily use. The owner of this shop Mr. Saajan Gupta, has very good relations with his customers, suppliers and competitors. He knows it that if his customers are dissatisfied with him, its negative impact will be there only on him and not on the other firms.
Therefore, he takes full care of their requirements. Similarly, Mr. Gupta also knows that if there is any change in the customs as well as in the technology, its impact will be there not only on him but also on all the firms of his industry. No firm has control over such changes, even then Mr. Gupta remains on guards against them. The above event is dependent on one of the ‘features of business environment’. Recognise this feature.
(a) Dynamic nature
(b) Inter-relatedness
(c) Totality of external forces
(d) Specific and general forces

56. The marketing manager of Green Gold Pvt. Ltd. Mr. Roy while taking decision consider what product will be produced, with what features and at what price shall it be sold or where shall it be made available for sale depending on what do the customers want. If the customers want features like double door in a refrigerator or a separate provision for water cooler in it, the organisation would produce a refrigerator with these features, would price it at a level which the customers are willing to pay and so on.
Identify the marketing philosophy followed by Mr Roy.
(a) The marketing concept
(b) The selling concept
(c) The product concept
(d) The production concept

57. Triton Ltd. entered into the market with computers and have now introduced products like audio systems, air-conditioners washing machines, etc. The company is not only offering the products, but also handling complaints and offering after-sales services.
Identify the element of marketing-mix discussed here.
(a) Place mix
(b) Product mix
(c) Promotion mix
(d) Price mix

58. Suhani, a home science graduate from a reputed college has recently done a cookery course. She wished to start her own venture with a goal to provide ‘healthy food’ at reasonable price. She discussed her idea with her teacher (mentor) who encouraged her. After analysing various options for starting her business venture, they shortlisted the option to sell readymade and ‘ready to make ‘vegetable shakes and sattu milk shakes. Then they both weighed the pros and cons of both the shortlisted options.
Name the function of management being discussed above.
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

59. Through this principle of management, Henri Fayol guides the managers to exhibit exemplary behaviour and advises that they should not fall into temptation of misusing their powers for personal benefit at the cost of general interest of the organisation.
Which principle of management is being described in the above statement?
(a) Remuneration of employees
(b) Centralisation and decentralisation
(c) Subordination of individual interest to general interest
(d) Equity

60. In pizza hut, the workers have been divided in groups for more fast and organised work. 1st prepares the dough and base, 2nd prepares all the toppings and spices, 3rd bakes and packs it and 4th serves it to the customers. They all work in coordination and pizza hut gets loved for their amazing taste and services and becomes a well-known pizza brand. Identify the principle of management used by pizza hut here.
(a) Stability of personnel
(b) Esprit de corps
(c) Discipline
(d) Unity of command