Class 12 Business Studies Sample Paper Term 1 Set B

Please refer to Class 12 Business Studies Sample Paper Term 1 Set B 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

Section A

1. Pramod Ltd targets production of 22,000 units in a year. The production manager was able to cut down the cost but could not achieve the target. In this case, manager is …………. but not ………….. .
(a) efficient but not honest
(b) effective but not efficient
(c) efficient but not effective
(d) None of the above

2. …………. is the essence of planning.
(a) Organising
(b) Controlling
(c) Forecasting
(d) Directing

3. ‘Find wants and fill them’ is …………. concept of marketing management.
(a) marketing
(b) societal
(c) product
(d) production

4. Management translates the work to be carried out in terms of goals to be achieved and assigns the means to achieve it. This statement relates to
(a) management of work
(b) management of people
(c) management of operations
(d) All of these

5. Mr. Kumar working in ABC Ltd. feels that he is being unfairly treated in his workplace. He complains that he is given too many tasks to be completed at once. He feels overburdened with so much work. What principle or technique is not being followed in the organisation?
(a) Cooperation, not individualism
(b) Unity of direction
(c) Both (a) and (b)
(d) None of these

6. …………… level of packaging is concerned with packing products to protect them and helps in the process of storage and identification.
(a) Primary
(b) Secondary
(c) Transportation
(d) None of these

7. Identify the nature of management highlighted in the following statement “Certain management associations like AIMA, have formulated ethical codes for managers, but there is no legal support for it.’’
(a) Management as an art
(b) Management as a science
(c) Management as a profession
(d) None of these

8. For the following two statements, choose the correct option.
Statement I Labelling is also an important feature of the product.
Statement II It not only protects the product but also serves as a promotional tool.
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

9. As the span of management increases in an organisation, the number of levels of management in the organisation ……… .
(a) increases
(b) decreases
(c) remains unaffected
(d) None of these

10. Which of the following is not the internal element of limitation of planning?
(a) Capital
(b) Raw material
(c) Increase in population
(d) Machine

11. Identify the type of organisational structure which makes training of employees easier, as the focus is only on a limited range of skills.
(a) Network structure
(b) Divisional structure
(c) Functional structure
(d) Matrix structure

12. What resources are specially kept in view while planning?
(a) Limited
(b) Unlimited
(c) Both (a) and (b)
(d) None of the above

13. The term ‘market’ may be understood in which of the following contexts?
(a) Geographical area covered
(b) Type of buyers
(c) Quantity of goods transacted
(d) All of these

14. Many businesses are using social media like Facebook, Instagram and twitter to promote themselves. This is an example of which dimension of environment?
(a) Social
(b) Economic
(c) Legal
(d) Technological

15. Which of the following statements does not reflect a condition to be satisfied for an exchange to take place?
(a) Involvement of at least two parties, i.e. the buyer and the seller, is mandatory.
(b) Each party should be capable of offering something of value to the other.
(c) Exchange can take place if the buyers and sellers are not able to communicate with each other.
(d) Each party should have freedom to accept or reject other party’s offer.

16. Planning of different departments in an organisation is ……… .
(a) independent
(b) individual
(c) mutually dependent
(d) None of these

17. Raman has the purchasing power to buy a new model of small car but not the willingness to purchase it whereas his friend Tarun has the willingness to purchase it but does not have purchasing power to buy it. Who will consitute the part of market for the product?
(a) Raman
(b) Tarun
(c) Both Raman and Tarun
(d) None of these

18. Recently the unpredictable covid situation has caused the unexpected changes in many businesses all over the world causing loss in some and profit in other with new current situation opportunities. What is the nature of business environment highlighted in the given statement?
(a) Uncertainty
(b) Dynamic
(c) Complex
(d) Relativity

19. ………… is considered as the father of scientific management.
(a) Henri Fayol
(b) FW Taylor
(c) Elton Mayo
(d) Maslow

20. Once departments have been formed, each of them is placed under the charge of …………… .
(a) general manager
(b) departmental head
(c) CEO
(d) managing director

21. In order to promote the sale of sports shoes, Mansa Limited is offering an opportunity to have dinner with Anushka Sharma and Virat Kohli to two of its customers whose names will be decided randomly through a draw. Besides the product itself, what is being marketed by the company through this offer?
(a) Place
(b) Experiences
(c) Event
(d) Idea

22. Proper understanding of business environment is not a prerequisite for ……… .
(a) tapping of useful resources
(b) identification of opportunities and threats
(c) better coordination of employee efforts
(d) None of these

23. For delegation to be effective, it is essential that responsibility is accompanied with necessary ……….
(a) authority
(b) manpower
(c) incentives
(d) promotions

24. ……… is not a part of work study.
(a) Motion study
(b) Time study
(c) Mental revolution
(d) Method study

Section B

25. ‘Twinkle Stars’ is a well-known resort for organising parties, especially for children. However, in past 6 months its popularity has reduced considerably as a new resort with better ambience and facilities has opened within its vicinity. Name the related eature of business environment which has influenced the business of ‘Twinkle Stars’ adversely.
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Uncertainty

26. Planning may not work in a ………………… environment.
(a) dynamic
(b) stable
(c) Both (a) and (b)
(d) None of these

27. ‘Garima Ltd.’, a manufacturer of car engines achieves a breakthrough by developing a car engine which runs on water. This development is effectively communicated by the company to its dealers and prospective customers. Because of this breakthrough, the image of the company has gone up. The company has also set-up a department that advises its top management to adopt such programmes which will add to its public image. Name the term that is used for this activity.
(a) Sales promotion
(b) Public relations
(c) Advertising
(d) Personal selling

28. Assertion (A) Agricultural and industrial production trends affect the business environment.
Reason (R) Technological environment like agriculture and industrial production trends has modified the ways to produce and distribute the goods through improved methods and techniques.
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 correct, but Reason (R) is not the correct explanation of Assertion (A)

29. In order to successfully realise the objectives of an organisation, first of all it is ensured which activities will have to be performed. In the list of activities, all the activities, both big and small, are included. But it is not possible to set up separate departments for all the activities, thus similar activities are put together in the same department. In this way, some necessary departments are set up. The reason for doing so is to exercise control over unnecessary administrative expenses. Identify the concept of management under which similar activities are put together and departments are set up.
(a) Departmentalisation
(b) Delegation
(c) Decentralisation
(d) Centralisation

30. A brand or part of a brand that is given legal protection is called ……………….
(a) Brand name
(b) Brand mark
(c) Trademark
(d) None of these

31. Sky Limited has a staff of two hundred people which is grouped into different departments. The organisational structure depicts that 100 people work in production department, 50 in finance department, 20 in technology department and 30 in human resource department. Identify the type of organisational structure being followed by the company.
(a) Functional structure
(b) Divisional structure
(c) Informal structure
(d) None of these

32. Assertion (A) The superior-subordinate relation is clearly defined in organising.
Reason (R) Each manager knows clearly to whom he can give orders and from whom he has to receive orders.
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 correct, but Reason (R) is not the correct explanation of Assertion (A)

33. Shyam and Suraj are newly appointed in ABC ltd. Both have been assigned to work under the production department. Shyam is responsible for arranging all tasks and machines for the job and Suraj has to ensure that machine is in proper working condition for completing the job. Specify the position to which they are assigned.
(a) Shyam-Inspector; Suraj- Inspector
(b) Shyam- Inspector; Suraj- Gang Boss
(c) Shyam- Gang Boss; Suraj- Repair Boss
(d) Shyam-Repair Boss; Suraj- Inspector

34. Which statement is not correct with respect to ‘organisation structure’?
(a) It ensures coordination among human and physical resources
(b) It ensures smooth flow of communication
(c) It specifies relationship between people, work and resources
(d) It establishes standards for controlling

35. Name the process which co-ordinates 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

36. For the following two statements, choose the correct option.
Statement I Continuity of planning is related with the planning cycle.
Statement II A plan is framed, implemented and is followed by another plan and so on.
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

37. Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel.
Identify the type of organisational structure followed by the organisation.
(a) Functional structure
(b) Relational structure
(c) Divisional structure
(d) None of these

38. Assertion (A) Marketing includes many activities that are performed even before goods are actually produced, and continue even after the goods have been sold.
Reason (R) Marketing is merely a post-production activity.
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 correct, but Reason (R) is not the correct explanation of Assertion (A)

39. Harshit Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs, its market share is declining. To cope up with the situation, CEO starts delegating some of his authority to the General Manager, who also felt himself overburdened and with the approval of CEO, disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed above.
(a) Delegation
(b) Organising
(c) Decentralisation
(d) Centralisation

40. Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to expand by diversifying into leather bags as well as western formal wear thereby making her company a complete provider of corporate wear. This will enable her to market her business unit as the one stop for working women. Which type of structure would you recommend for her expanded organisation?
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
(d) None of these

41. Wove is a washing machine manufacturing company. The company decides to enter into music system manufacturing industry. The company has a committed top management. It knows that there are various challenges in the market where its decisions regarding the new industry might fail. Still the top management doesn’t want to waste a lot of resources on its plans. It knows that sometimes plans take more time in making than getting implemented.
However, the company wants to proceed with a positive approach. It has decided to study all the aspects of its competitors, to set all its objectives and to allocate the required resources.
The company did well in its previous business. At that time, they took planning very seriously as they knew, everything the company would do had to be based on concrete plans. The company will start its operations from next month.
Which function of management has been discussed in the above case?
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling

42. ………… principle of management states that there should be a place for everything and everything should be in its place.
(a) Equity
(b) Discipline
(c) Order
(d) Esprit de corps

43. A company was marketing ‘water purifiers’which were very popular due to their quality and after sales services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits, the company ignored the after sales services. As a result, its relations with the customers got spoiled and the image of the company was damaged in the public. Top management became concerned when the profits for the current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services was its reason. Therefore, the company took all possible measures to protect and promote its favourable image in the eyes of the public. As a result, the goodwill of the company improved in the society.
Name the communication tool used by the marketer in the above case to improve its image.
(a) Advertisement
(b) Sales promotion
(c) Public relations
(d) Publicity

44. Chairman is the position at ……… level of management in a large company.
(a) top
(b) middle
(c) lower
(d) middle and lower

45. Karim is at the real point of decision-making in the course of his planning. He has arrived at this point after identifying various alternative courses of action. After identification, he was thoroughly involved in the evaluation of each of these alternatives. He later got involved into making several permutations and combinations of these alternatives to arrive at this point. Which stage of the planning process is Karim at?
(a) Identification of different alternatives
(b) Evaluating different alternatives
(c) Selecting the best alternative
(d) Follow up

46. For the following two statements, choose the correct option.
Statement I Method study means finding the one best way of doing a task.
Statement II Fatigue study means eliminating the unnecessary movements.
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. Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy, etc. and offered various services like after sale service, availability of spare parts, etc.
Identify the element of marketing mix referred here.
(a) Product
(b) Price
(c) Promotion
(d) Place

48. Two friends, Naman and Krishan are working as managers in different companies. One Sunday, both of them together set off on travelling. Both of them began talking about the activities going on in their respective companies. Mr Naman said that during these days, he was busy with the job of planning function of management. He also told that he was planning in such a way that the other managerial functions should be completed under the framework of plans prepared by him.
Identify the feature of planning described by Naman in the above discussion.
(a) Planning focuses on achieving objectives
(b) Planning is a primary function of management
(c) Planning is pervasive
(d) Planning is continuous

Section C

Direction : – Read the following case study and answer question number 49-54 on the basis of the same.
Grey works in a private sector retail bank. He sets objectives and goods for the whole bank. He is also responsible for formulating strategies of the bank. He realised that different individuals had their own style of working and differs in their day-to-day approach towards work. They apply their own creativity.
However, he felt that there is no harmony in the work done by each leading to over lapping or duplication of work and wastage of lot of time. He integrated the efforts of these individuals into a unified plan of action to achieve better organisational results.
Grey is a leader who consults the workers before taking important decisions. The workers are also satisfied because of this behaviour as they are taken into confidence before important decisions.

49. According to the above said case, at which level of management, Grey works?
(a) Top
(b) Middle
(c) Lower
(d) Shop floor

50. “He realised that different individuals had their own style of working and differs in their day-to-day approach towards work. They apply their own creativity”. In these lines, ……… is highlighted as the nature of management.
(a) Art
(b) Science
(c) Profession
(d) None of these

51. Which concept is highlighted in the lines, “However, he felt that there is no harmony in the work done by each leading to overlapping or duplication of work and wastage of lot of time. He integrated the efforts of these individuals into a unified plan of action to achieve better organisational results.”?
(a) Cooperation
(b) Coordination
(c) Authority and responsibility
(d) Planning

52. “Grey is a leader who consults the workers before taking important decisions”. Whichobjec tive of management is highlighted in given lines?
(a) Social
(b) Personal
(c) Organisational
(d) None of these

53. “He realised that different individuals had their own style of working and differs in their day-to-day approach towards work. They apply their own creativity.” Which feature of management highlighted in the given lines?
(a) Pervasive
(b) Continuous process
(c) Multi-dimensional
(d) Intangible

54. “Grey is a leader who consults the workers before taking important decisions”. Which importance of management highlighted in given lines?
(a) Management improves efficiency
(b) Management helps in achieving personal objectives
(c) Management helps in the development of society
(d) Management creates a dynamic organisation

55. According to a report by the India Staffing Federation (ISF), India has emerged as the Fifth largest market worldwide in flexi-staffing in 2018 and the country would have 6.1 million flexi workforce by 2021. It showed that Haryana, Gujarat, Karnataka, Madhya Pradesh and Telangana are the states with high growth potential for flexi-staffing but Andhra Pradesh tops the list of states with favourable business environment. Identify the feature of business environment being discussed above.
(a) Relativity
(b) Dynamic nature
(c) Uncertainty
(d) Interrelatedness

56. Vasvi purchased a bottle of pickle from the local grocery shop. The information provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the District Forum under Consumer Protection Act and got the relief. Identify the important aspect neglected by the marketer in the above case.
(a) Packaging
(b) Branding
(c) Labelling
(d) None of these

57. After acquiring the necessary knowledge and skills on starting an Aloevera Farm, Ashok wanted to be the leading manufacturer of Aloevera products worldwide. He observed that the products were expensive as the demand of the products was more than the supply.
Ashok’s main consideration was about the amount of money paid by the consumers in consideration of the purchase of Aloevera products. He also thought that competitor’s prices and their anticipated reactions must also be considered for this. The consumers will be ready to buy a product when they perceived that the value of the product is at least equal to the value of money which they would pay. He knew that in the long run, the business will not be able to survive unless all costs are covered in addition to a minimum profit. Considering the same, he decided to add some unique features to the packaging and also decided to provide free home delivery of the products. The above case relates to a concept which is considered to be an effective competitive marketing weapon. In conditions of perfect competition, most of the firms compete with each other on this concept in the marketing of goods and services. Identify the concept.
(a) Product
(b) Price
(c) Place
(d) Promotion

58. After completing his M.B.A. education, Mr Rohit took over the business of his father.
Now he started making a practical use of his theoretical knowledge of management.
He liked it very much. But right from the very beginning, he was faced with one problem. For the last three years continuously, he had been observing that whatever the sales target he would fix, he never succeeded to achieve it fully. He studied this problem thoroughly and found that it so happened because in the first year (of his taking over the business) the government at the centre changed; in the second year, there was a change in fashion and in the third year, several competing firms entered the market.
Now he realised that planning does not foresee everything and that several problems come in the way of effective planning.
Identify the ‘limitation of planning’ in the event discussed above.
(a) Planning leads to rigidity
(b) Planning may not work in a dynamic environment
(c) Planning reduces creativity
(d) Planning involves huge costs

59. Mr. Raman has a 32 years experience of working in the field of management. He has maintained proper working in his workplace for many years with his experience and research work and by observing his colleagues working beside him. State feature of management highlighted above.
(a) Principles of management are general guidelines
(b) Principles of management are contingent
(c) Flexible
(d) Formed by practice and experimentation

60. According to this principle of scientific management, “Scientific management has for its foundation the firm conviction that true interest of the management and workers are one and the same; the prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa.”
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
(d) All of the above