The Central Board of Secondary Education has scheduled the class 12th Business studies paper for March 24, 2020.
1. Which statement is not true for single-use plans?
- Single-use plans are made for handling non-recurring problems.
- The length of the single-use plan differs depending on the length of the project.
- They are also known as ‘Specific Plans’ as they are formulated to fit the specific situations.
- They are generally prepared by top-level management
2. The Return on Investment (ROI)of a company ranges between 10% -12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt:
- Option A: Rate of interest 9%
- Option B: Rate of interest 13%
Which source of debt, ‘Option A’ or ‘Option B’ is better? Give reasons in support of your answer.
3. Sumit Mahajan was working with Çhhabra Movers and Packers Ltd for the past five years. He was asked by the Marketing Manager to strike a deal with a buyer and was allowed to give a discount of 20%. However, the finance manager asked not to give a discount of more than 15%.
Identify the principle of management which is disregarded here.
4. ‘Calculato’ is a reputed company that provides financial solutions to big MNCs in and around Delhi. The Chartered Accountants of the company are required to travel from Delhi to NCR. They use their own cars and are given a conveyance allowance for the same. Delhi Government introduced the scheme of ‘Odd and Even’ car in January 2016. Two of the Chartered Accountants decided to convert their petrol cars into CNG cars.
Identify the dimension of the business environment
5. Which level of the management sets targets for the workforce?
- Top-level management
- Middle-level management
- Lower-level management
- Both a and b
6.Atul Ltd. Is engaged in manufacturing refrigerators. The target of the organization is to manufacture 500 refrigerators a day. There is an occupational specialization in the organization, which promotes the efficiency of employees. There is no duplication of efforts in such a type of organizational structure.
Identify the type of organizational structure described above.
7. State with reason whether the following statement is True or False.
- Staffing is searching for prospective candidates.
8. ________________ is a step in the process of staffing, in which the newly – selected candidate is introduced to other employees and is familiarised with the rules and policies of the organization.
9. ‘Challenge to Authority’ comes under which type of barriers:
- Semantic barrier
- Organisational barrier
- Personal barrier
- Psychological barrier
10. In an organization employee always feel that they are under enormous unnecessary stress, as the manager does not provide any information about future plans, but simply instructs them what to do. He also does not listen to any of the suggestions given by the subordinates.
Identify the type of leadership style followed by the manager in the above situation.
11. Manmohak Sweets is a renowned name for quality sweets since 1935.Harsh, the owner of Manmohak Sweets, was worried as the sales had declined during the last three months. When he enquired from the Sales Manager, the Sales Manager reported that there were some complaints about the quality of sweets. Therefore, Harsh ordered for sample checking of sweets.
Identify the step taken by Harsh that is related to one of the functions of management.
12. Shanti Medicos is a chemist shop with three branches in Delhi itself. All the branches are doing well in their area of operation. The employees are happy and satisfied. There is no chaos and all the outlets exhibit orderliness.
Which characteristic of management is highlighted in the case of Shanti Medicos?
13. _______________ involves designing and producing container or wrapper of the product.
14. Other things remaining the same, an increase in tax rate on corporate profits will_________________.
- make debt relatively cheaper
- make debt relatively expensive
- have no impact on the cost of debt
- make equity relatively cheaper
15. Fastex Ltd. A reputed automobile manufacturer needs Rupees Ten Crores as additional capital to expand its business. Anuj Gupta, the CEO of the company wanted to raise funds through equity. On the other hand, the Finance Manager, Nitesh Sachdeva, said the public issue may be expensive on account of various mandatory and non-mandatory expenses. Therefore, it was decided to allow the securities to institutional investors.
Name the method through which the company decided to raise additional capital.
16. Manoj Mehta wanted to purchase a fuel efficient car having the latest standards regarding minimization of pollution. He saw an advertisement offering such a car and visited the showroom of the company wherein the car was displayed. In his discussion at the showroom, the Marketing Manager told him that the company is providing credit facilities, maintenance services, and many other effective services which are helping in bringing repeat sales and develop brand loyalty.
Identify the marketing function which the Marketing Manager was discussing with Manoj.
17. Which one of the following promotion tools has mass reach?
- Personal selling
- Sales promotion
- Public relations
18. What are the twin objectives that financial planning strives to achieve?
19. As a well-informed consumer, what kind of quality certification marks you will look for before buying the following products.
- Woolen garments
- Sweetened aerated water
20. Shallu bought a packet of masala chips from a local shopkeeper and found that the ingredients given on the label were not legible. She complained about it to the company. The company sent a written apology stating that they will make sure that the existing packets are withdrawn from the market and new packets with legible labels are soon made available.
State the consumer right which Shallu exercised.
21. Suman Mahajan is one of the most successful entrepreneurs in the field of stylish home furnishings. Her venture ‘Décor Ltd.’ highlights the tag line ‘My Sweet Den’ in most of her promotions. She uses her creativity and initiative in handling challenging customer preferences. She applies her knowledge and skills that she had gained in her initial years of work by assisting Mr. Ashok Chandra an interior decorator of repute. She has a happy fan following of customers due to her promptness in delivering orders.
An aspect of the nature of management is being highlighted in the above case. Identify the aspect and explain any two features of it
Sudha Rastogi and Sumedha Bhagat started a joint venture for making jute baskets for florists in their area. They called their manufacturing units as ‘Jute at its Best’. Their baskets started gaining a lot of popularity and they were earning well enough not only to meet their basic expenses but also to think about diversifying and setting up new units. The demand for baskets was increasing day by day, so both of them decided to employ more people especially ladies who could spare a few hours during the day. Sudha and Sumedha also decided to provide free pick and drop facility to their employees along with crèche facilities for their children.
Identify and explain the objectives of management discussed above.
22. Amitabh purchased an ISI marked washing machine of a famous brand ‘GenX’ from Chawla Electronics ltd. The shopkeeper asked him to wait for two days for the installation of the machine. His friend, Shubham was very fond of experimenting with new electronic products. He told Amitabh that there is no need to wait for the company’s representatives to install the machine and that he could do it. So, both of them installed the machine following the manufacturer’s instructions. Initially, the machine worked effectively and the wash was good. But after two days, the machine started stopping in between the wash cycle. Amitabh and Shubham tried their best to start the machine but failed in their efforts. Amitabh therefore approached Chawla Electronics ltd., which refused to provide any service on the plea that the installation of the machine was not done by the company.
- State the responsibility that Amitabh had to fulfill as an aware consumer to get the services of the company.
- Mention any two rights which Amitabh could have exercised had he fulfilled his responsibility identified in part (a) and explain any one of them.
23. “Controlling is considered to be blind without planning and planning is meaningless without controlling.” Explain.
24. Ajay was appointed the marketing head of ‘Alfa Enterprise’, manufacturers of toothpaste and toothbrushes. His target sale was 2,000 units a month. Apart from thinking about the various channels of distribution to achieve the targets, he himself started visiting schools in backward areas. He found that even after taking various steps and counseling, some school children had not started brushing their teeth. He investigated and found that they could not afford to buy a toothbrush and toothpaste. So, with due permission, he started donating 200 toothbrushes and toothpaste every month to the school.
25. Identify and explain the channel of distribution Ajay would adopt for the distribution of toothpaste and toothbrushes and justify it by giving one reason.
Differentiate between formal and informal organizations on the basis of the following basis:
- flow of communication.
26. “Though branding adds to cost, it provides several advantages to marketers and customers.” In light of the above statement state any two advantages of branding to marketers and customers.
What is meant by public relations? State any three objectives of it.
27. As per the directions issued by the Supreme Court, the government
passed an order to ban the sale of tobacco products within the area of 200 Meters of all educational institutions as:
- Its consumption is injurious to health.
- People are becoming more conscious about health and fitness.
It is indicating the government’s attitude towards this business. There is a fall in government revenues.
Identify the ‘Business Environment’ under four different dimensions quoting the lines from the above para.
28. “If we delegate the authority, we multiply it by two, if we decentralize it, we multiply it by many. “In light of this statement, explain any four points of importance of decentralization.
29. Explain the following principles of Scientific Management with
- Harmony, not discord
- Science, not rule of thumb
Discuss any five differences between the contributions of Taylor and Fayol.
30. Two years ago, Mayank obtained a degree in food technology. For some time, he worked in a company that manufactured bread and biscuits. He was not happy in the company and decided to have his own bread and biscuit manufacturing unit. For this, he decided the objectives and the targets and formulated an action plan to achieve the same.
One of his objective was to earn 50% profits on the amount invested in the first year. It was decided that raw materials like flour, sugar, salt, etc. will be purchased on two months’ credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as the Production Manager who decided the exact manner in which the production activities were to be carried out. Harsh also prepared a statement showing the requirement of workers in the factory throughout the year. Mayank informed Harsh about his sales target for different products, for the forthcoming quarter. While working on the production agenda, a penalty of Rs 150 per day was announced for not wearing the helmet, gloves, and apron by the workers.
Quoting lines from the above paragraph, identify and explain the different types of plans discussed.
31. Well-being Ltd. is the company engaged in the production of organic foods. Presently it sells its product through indirect channels of distribution but considering the sudden surge in the demand for organic products the company is now inclined to start its online portal for direct marketing. The financial managers of the company are planning to use debt in order to take advantage of trading on equity. In order to finance its expansion plans, it is planning to raise debt capital of Rs. 40 lakhs through a loan @ 10% from an industrial bank. The present capital base of the company comprises of Rs. 9 Lakhs equity shares of Rs. 10 each. The rate of tax is 30%. In the context of the above case:
- What are the two conditions necessary for taking advantage of trading on equity?
- Assuming the expected rate of return on investment to be same as it was for the current year i.e. 15%, do you think the financial managers will be able to meet their goals. Show your workings clearly.
‘G Motors ‘ is the manufacturer of sophisticated cranes. The Production Manager of the company reported to the Chief Executive Officer, Ashish Jain, that one of the machines used in manufacturing sophisticated cranes had to be replaced to compete in the market, as other competitors were using automatic machines having the latest technology. It was also decided to finance this machine through long term sources of finance. Ashish Jain compared various machines and decided to invest in the machine which would yield the maximum returns to its investors.
a. Identify the financial decision taken by Ashish Jain
b. State any one importance of such a financial decision.
Explain any three factors affecting the decision identified in a. above.
32. “To promote orderly and healthy growth of the securities market and protection of investors, Securities, and Exchange Board of India was set up.” With reference to this statement explain four objectives of the Securities and Exchange Board of India and also state any two development functions of SEBI.
33. Explain the first four steps involved in the process of identifying and choosing the best person out of a number of prospective candidates for the job.
What is meant by recruitment? Explain any three external sources of recruitment
34. Rahim was working in an enterprise on a daily wage basis. It was difficult for him to fulfill the basic needs of his family. His daughter fell ill and he had no money for her treatment. To meet the expenses of her treatment he participated in a cycle race and won the prize money. The cycle company offered him a permanent pensionable job which he happily accepted.
- By quoting the lines from the above para, identify the needs of Rahim that are satisfied by the offer of the cycle company.
- Also, explain two other needs of Rahim followed by the above needs that are still to be satisfied by giving examples.
Neeraj, a sales representative of Omida Ltd. Has changed seven jobs in the last year. He is a hardworking person but is not able to finalize deals with customers due to his inadequate vocabulary and omission of needed words. Sometimes he uses wrong words because of which the desired meaning is not conveyed. All this creates a misunderstanding between him and his clients.
- Identify the communication barrier discussed above.
- State the category of this communication barrier.
- Explain any four communication barriers of the same category other than the one identified in part a.