CBSE Class 12 Business Studies Term 1 Sample Paper 2022 Set A

Question. Centralisation refers to
(a) Retention of decision making authority
(b) Dispersal of decision making authority
(c) Creating divisions as profit centers
(d) Opening new centers or branches

Answer : A

Question. Which marketing function is concerned with informing the customers about he firm’s products?
(a) Pricing
(b) Promotion
(c) Branding
(d) Physical distribution

Answer : B

Question. The following is not an objective of Management
(a) Earning profits
(b) Growth of the organisation
(c) Providing Employment
(d) Policy Making

Answer : C

Question. ................. is the function of determining in advance what is to be done and who is to do it.
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Answer : A

Question. Which of the following statements best describes marketing concept/philosophy.
(a) A firm should consider large issues of long-term interest of the community
(b) A firm should develop products that are capable of satisfying the needs of the target market
(c) Firms should undertake aggressive selling and promotional efforts to make customers buy their products.
(d) A firm can maximise its profits by producing at a large scale.

Answer : B

Question. Which principle of scientific management is considered as an extension of principle of ‘Harmony not discord.’ 
(a) Science not rule of thumb
(b) Equity
(c) Cooperation not individualism
(d) Development of each and every person to his or her greatest efficiency and prosperity.

Answer : C

Question. Policy formulation is the function of
(a) Top level Managers
(b) Middle level Managers
(c) Operational Management
(d) None of the above

Answer : A

Question. ‘Various elements of delegation help to define the powers, duties and answer ability related to the various positions in an organisation’. Which importance of delegation is discussed here?
(a) Basis of management hierarchy
(b) Motivation of employees
(c) Better coordination
(d) Effective management

Answer : C

Question. Which tool of promotion is concerned with providing short-term incentives that are designed to encourage the buyers to make immediate purchase of a product?
(a) Public relations
(b) Sales promotion
(c) Advertising
(d) Personal selling

Answer : B

Question. She/He keeps machines materials tools etc. ready for operations by concerned workers. Whose work is described by this sentence under functional foremanship.
(a) Instruction card clerk
(b) Repair Boss
(c) Gang Boss
(d) Route Clerk

Answer : C

Question. ‘Organising leads to a systematic allocation of jobs amongst the work force that further results in enhanced productivity’. Which importance of organising is discussed in the given sentence?
(a) Benefits of specialisation
(b) Clarity in working relationships
(c) Optimum utilisation of resources
(d) Effective administration

Answer : A

Question. Nishant, a dealer in school uniform, decided to maximise his profit by using different aggressive promotional efforts. Identify the marketing management philosophy adopted by Nishant.
(a) Societal concept
(b) Marketing concept
(c) Product concept 
(d) Selling concept

Answer : D

Question. ‘In an organisation, a well defined plan is drawn up with specific goals to be achieved within a specific time frame. These plans then decide the future course of action and managers may not be in a position to change it’.
Which of the following limitations of planning is discussed in the above case?
(a) Planning reduces creativity
(b) Planning leads to rigidity
(c) Planning does not guarantee success
(d) Planning may not work in a dynamic environment

Answer : B

Question. Which element of marketing mix is concerned with activities that make firm’s products available to the target customers?
(a) Product
(b) Price
(c) Place
(d) Promotion

Answer : C

Question. ............... is a system of well defined jobs, each bearing a definite measure of authority responsibility and accountability. 
(a) Delegation
(b) Decentralisation
(c) Formal organisation
(d) Informal organisation

Answer : C

Question. Which of the following does not affect firm’s inventory levels?
(a) Price of homogeneous products
(b) Firm’s policy regarding the level of customer services to be offered
(c) Responsiveness of the distribution
(d) Cost of Inventory

Answer : A

Case Based Questions : 

Read the Passage given below and answer the questions that follow:
Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India. It set up its office in Jamnagar with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefiting the customers.

Question. ___________ is the term that best explains. Integrating of the domestic economy with the rest of the world. 
(a) Privatization
(b) Globalization
(c) Disinvestment
(d) Liberalization

Answer : B

Question. ‘The firm in the given case invented the first smart watch, named as W-7’. Which dimension of business environment is mentioned in the given case.
(a) Economic
(b) Political
(c) Social
(d) Technological

Answer : D

Question. What is the impact of government policy changes of removing unnecessary restrictions and control over business on business and industry, discussed in the given para. 
(a) It increases competition.
(b) There was a necessity for change.
(c) Market orientation was required.
(d) There was a need for developing human resources.

Answer : A

Question. ‘The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India’. Name the economic reform mentioned in the given statement.
(a) Privatization
(b) Liberalization
(c) Globalisation
(d) Disinvestment

Answer : B

Read the Passage given below and answer the questions that follow:
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.

Question. ________________ is the function of management discussed in the above case. 
(a) Planning
(b) Organizing
(c) Directing
(d) Controlling

Answer : B

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

Answer : A

Question. _____________ refers to the process of grouping activities of similar nature. 
(a) Strategy
(b) Delegation
(c) Departmentalization
(d) Decentralization

Answer : C

Question. _______________ refers to the framework within which managerial and operating tasks are performed.
(a) Management
(b) Divisional structure
(c) Organizational structure
(d) Decentralization

Answer : C

Read the Passage given below and answer the questions that follow:
Shilpa is working as a marketing head in an insurance company. She has been holding this position for long. She is an experienced manager who believes that organisations are made up of people who have different personalities, backgrounds, experiences and objectives. According to her, people become part of the organization to satisfy their diverse needs. Shilpa is of the view that all organisations have to function in an environment that is constantly changing. Hence, during the spread of Corona virus pandemic, she came up with new insurance products, which were designed as per the present needs and requirements of the customers. Soon the insurance products developed by Shilpa became a hit and the organization was able to achieve its goals. The goal of the organization which Shilpa wanted to achieve acted as a vital incentive for the continued successful operation of the enterprise . Before developing the new products, Shilpa determined in advance what is to be done and who is to do it. She set goals in advance and developed a way of achieving them efficiently and effectively.

Question. During the spread of coronavirus pandemic, Shilpa came up with new insurance products to ensure ____________ of the company in the long run.
(a) Growth
(b) Survival
(c) Welfare
(d) Profit

Answer : B

Question. Which importance of management is mentioned in the given case. 
(a) Management increases efficiency
(b) Management creates a dynamic organization
(c) Management helps in the development of society.
(d) Management helps in achieving group goals

Answer : B

Question. “Before developing the new product, Shilpa determined in advance what is to be done and who is to do it. She set goals in advance and developed a way of achieving them efficiently and effectively”.
Which managerial function is achieved by Shilpa here? 
(a) Planning
(b) Organizing
(c) Directing
(d) Controlling

Answer : A

Question. “The goal of the organization which Shilpa wanted to achieve acted as a vital incentive for the continued successful operation of the enterprise”.
Which goal of the organization Shilpa wanted to achieve?
(a) Growth
(b) Survival
(c) Profit
(d) Efficiency

Answer : C

Read the Passage given below and answer the questions that follow:
The principles of management are intended for all types of organisations, business as well as non-business, small as well as large, public as well as private sector, manufacturing as well as service sectors. They are not rigid prescriptions, which have to be followed absolutely. They can be modified by the manager as per the prevailing situation. Adherence to these principles adds to managers’ knowledge, ability and understanding of managerial situations and circumstances. It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly. These principles of management hold great relevance and managers should try to follow them as far as possible. Often certain principles of management are violated and the entire organization suffers. For example, Raman is working as a production manager in CFL Ltd. which manufactures CFL bulbs. His subordinate Arjun designed a plan for cost reduction but it was not welcomed by Raman. Another employee gave some suggestions for improvement in design but it was also not appreciated by Raman. This resulted in dissatisfaction among the employees which further resulted in poor performance of the employees.

Question. Identify the nature of principle of management discussed in the given para. 
(a) General guidelines
(b) Universal applicability
(c) Formed by practice and experimentation
(d) Contingent

Answer : B

Question. Identify the nature of management principles when it is said that principles of management can be modified as per the prevailing situation. 
(a) Flexible
(b) Contingent
(c) Behavioural
(d) Absolute

Answer : A

Question. ‘It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly’.
According to this statement, the principles of management are important because they help in ......................... .
(a) Meeting changing environment requirements
(b) Optimum utilization of resources and effective administration
(c) Providing managers with useful insights into reality
(d) Fulfilling social responsibility

Answer : C

Question. As Raman did not welcome the suggestions of other employees, which principle of management is violated by him?
(a) Discipline
(b) Order
(c) Unity of direction
(d) Initiative

Answer : D

Read the Passage given below and answer the questions that follow:
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 earning huge profits. The company started taking the advantage of its market position and hence 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 the 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.

Question. Which tool of promotion is used by the marketer in the above case.
(a) Advertising
(b) Sales promotion
(c) Public relations
(d) Personal selling

Answer : C

Question. Which function of management was not performed by the company properly in the given case. 
(a) Physical distribution
(b) Customer support services
(c) Marketing planning
(d) Standardization and grading

Answer : B

Question. Which of the following is not the function of the promotional tool identified in.
(a) Press relations
(b) Product publicity
(c) Consumer protection
(d) Lobbying

Answer : C

Question. Which of the following marketing objective is achieved by the promotional tool identified in.
(a) Building awareness
(b) Building credibility
(c) Lowering promotion cost
(d) All of the above

Answer : D

Read the Passage given below and answer the questions that follow:
Simplex limited had been taken over by Mundhra Group immediately following India’s independence. Since then it enjoys a rich record of industry presence and experience. In 2015, with the aim to accelerate growth the company had gone through several rounds of meetings and discussions before launching ERP system to attract large projects. The management had done effective forecast and critical thinking regarding allocation of resources to reduce wastages. For this purpose the company had laid down multiple courses of action to meet the challenge of adverse situations. In 2018, the company suffered loss in many projects due to the despite taking many cost-cutting measures. The management had taken utmost care regarding the possible outcome and timely review of the plans to achieve the set targets during that hard time. In 2019 the system implemented successfully which subsequently helped the company to execute numerous projects with precision and timeliness.

Question. “In 2015, with the aim to accelerate growth the company had gone through several rounds of meetings and discussions.”
What is the objective mentioned here according to the process stated here?
(a) Developing Premises
(b) Growth and development
(c) Launching IT enabled system
(d) Cost cutting.

Answer : A

Question. “In 2018, the company suffered loss in many projects due to the great recession despite taking many cost cutting measures.” Which limitation of the management process is indicated here?
(a) It involves huge cost
(b) It fails to cope with sudden changes
(c) It requires critical thinking
(d) Need to construct multiple action plans

Answer : B

Question. State whether the given statement is True or False:
“The management had done effective forecast and critical thinking regarding allocation of resources to reduce wastages.”
(a) True
(b) False

Answer : A

Question. “The management had taken utmost care regarding the possible outcome and timely review of the plans to achieve the set targets during that hard time.” Which is the last step of the process mentioned here?
(a) Implementation of plan
(b) Timely execution of projects
(c) Follow up
(d) To prepare alternative course of action

Answer : C