CBSE Question Paper 2017 class 12 Business Studies

General Instructions:

• Answer to questions carrying 1 mark may be from one word to one sentence.
• Answer to questions carrying 3 marks may be from 50 to 75 words.
• Answer to questions carrying 4-5 marks may be about 150 words.
• Answer to questions carrying 6 marks may be about 200 words.
• Attempt all parts of a question together.
• Question Nos. 1 to 8 are very short-answer questions carrying 1 mark each.
• Question Nos. 9 to 13 carry 3 marks each.
• Question Nos. 14 to 19 carry 4 marks each.
• Question Nos. 20 to 22 carry 5 marks each.
• Question Nos. 23 to 25 carry 6 marks each.

Q1. What is meant by ‘financial management’?

Q2. Why is ’employment interview’ conducted in the process of selection?

Q3. Sunita took her niece, Aishwarya for shopping to ‘Benetton’ to buy her a dress on the occasion of her birthday. She was delighted when on payment for the dress she got a discount voucher to get 20% off for a meal of Rs 500 or above at a famous eating joint.Identify the technique of sales promotion used by the company in the above situation.

Q4. Meca Ltd. a reputed automobile manufacturer needs Rupees ten crores as additional capital to expand its business. Atul Jalan, the CEO of the company wanted to raise funds through equity. On the other hand the Finance Manager, Nimi Sahdev said that the public issue may be expensive on account of various mandatory and non-mandatory expenses. Therefore, it was decided to allot the securities to institutional investors. Name the method through which the company decided to raise additional capital.

Q5. Differentiate between ‘formal’ and ‘informal’ organisation on the basis of ‘origin.’

Q6. Give the meaning of ‘motivation’ as an element of directing.

Q7. Alpha Enterprises is a company manufacturing water geysers. The company has a functional structure with four main functions Production, Marketing, Finance and Human Resource. As the demand for the product grew, the company decided to hire more employees. Identify the concept which will help the Human Resource Manager in deciding the actual number of persons required in each department.

Q8. Hina Sweets is a renowned name for quality sweets since 1935. Harsh the owner of Hina 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.

Q9. Explain briefly ‘discipline’ and ‘scalar chain’ as principles of general management.

Q10. State any three limitations of planning.

Q11. Explain any three points that highlight the importance of directing function of management.

Q12. Ginika, Tanish and Rohit were friends from college days and now they are doing different kinds of business. They regularly meet and discuss their business ideas and exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques, social concerns etc.

In one of such meetings, Ginika drew the attention of Tanish and Rohit towards the exploitation of consumers. She told that most of the sellers were exploiting the consumers in various ways and were not paying attention towards the social, ethical and ecological aspects of marketing, whereas she was not doing so.
Tanish told that they were under pressure to satisfy the consumers, but stated that the consumers would not buy or not buy enough unless they were adequately convinced and motivated for the same.

Rohit stressed that a company cannot achieve its objectives without understanding the needs of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind because business is run by the resources made available to them by the society.

He further stated that he himself was taking into consideration the needs of the customers.
Identify the various types of thinking that guided Ginika, Tanish and Rohit in the making efforts of their business. Also, state one more feature of the various types of thinking identified that is not given in the above para.

Q13. Somnath Ltd. is engaged in the business of export of garments. In the past, the performance of the company had been up-to the expectations. In line with the latest technology, the company decided to upgrade its machinery. For this, the Finance Manager, Dalmia estimated the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis.

Dalmia therefore, began with the preparation of a sales forecast for the next four years. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business. For the remaining funds he is trying to find out alternative sources from outside. Justify the financial concept discussed in the above para. Also state the objectives to be achieved by the use of financial concept, so identified.

Q14. Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop ‘Aroma CoffeeCan’ in a famous mall in New Delhi. The speciality of the coffee shop was the special aroma of coffee and wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular, Sanchit was keen to find tout the reason.

He appointed Sandhya, an MBA from a reputed college, as a Manager to find out the causes for the same. Sandhya took feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order.

She analysed and found out that there were many unnecessary obstructions in between which could be eliminated. She fixed a standard time for processing the order. She also realised that there were some flavours whose demand was not enough. So, she also decided to stop the sale of such flvaours. As a result with in a short period Sandhya was able to attract the customers. Identify and explain any two techniques of scientific management used by Sandhya to solve the poblem.

Q15. Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He found that the profits had started declining from the last six months. Profit has an implication for the survival of the firm, so he analysed the business environment to find out the reasons for this decline.
(a) Identify the level of management at which Ashutosh Goenka was working.
(b) State three other function being performed by Ashutosh Goenka.

Q16. Give the meaning of ‘procedure’ and ‘rule’ as types of plans.

Q17. Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for itself and had been doing well. It was known for timely completion of orders. The Production Manager, Ms. Kanta was efficiently handling the processing of orders and had a team of fourteen motivated employees working under her. Everything was going on

well. Unfortunately she met with an accident. Umang knew that in the absence of Ms. Kanta, the company may not be able to meet the deadlines. He also knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of business and goodwill. So, he had a meeting with his employees in which accurate and speedy processing of orders was planned. Everybody agreed to work as team because the behaviour of Umang

Gupta was positive towards the employees of the organisation. Hence everyone put in extra time and efforts and the targets were met on time.Not only this, Umang visited Ms. Kanta and advised her to take sufficient rest.
(a) Identify the leadership style of Umang Gupta and draw a diagram depicting the style.
(b) State any two values highlighted by the behaviour of Umang Gupta.

Q18. Explain briefly ‘transfers’ and ‘promotions’ as internal sources of recruitment.

Q19. These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this there is another market in which unsecured and short-term debt

instruments are actively traded everyday. These markets together help the savers and investors in directing the available funds into their most productive investment opportunity.
(a) Name the function being performed by the market in the above case.
(b) Also, explain briefly three other functions performed by this market.

Q20. Indian Youth Organisation (IYO) organised a visit of its members to an old age home to inculcate the habit of social work among them. The visit revealed that the living conditions of the inmates of the old age home were not hygienic. So, the IYO members decided to clean the premises. During their cleanliness drive, they realised that the old age home also required pest control. But some of the inmates of old age home were reluctant for it because they believed that the pest control may create health problems for them. IYO,

therefore decided to provide ethical, safe and odourless pest control. They showed to the inmates of old age home a pamphlet of the proposed pest control product which promised easy, inexpensive and long lasting pest control. The inmates happily agreed and the pest control was carried out. It worked for a fortnight but to their dismay the effect started wearing off. IYO contacted the pest control company which kept on postponing their visit.

After waiting for a month, IYO filed a case in the consumer court.
The consumer court was satisfied about the genuineness of the complaint and issued necessary directions to the pest control company.
(a) State any six directions that might have been issued by the court.
(b) Also, identify any two values that are being communicated by IYO to the society.

Q21. 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, there-by benefiting the customers.

(a) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.
(b) Also, explain briefly any three impacts of these concepts on Indian business and industry.

Q22. Describe briefly the relationship between controlling and planning.

Q23. Mediquip Ltd. is a company dealing in distribution of medical equipments. The company recently imported 15000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the comapny called a meeting of the marketing heads of different zones.In the

meeting, Sandeep, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals to personally, explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same.
Himanshu, another Zonal Head, added that since lot of money had been spent on the import of the machines, the company was short of funds to pay to the additional staff as suggested by Sandeep.

Rahul, a newly appointed Zonal Head of South Zone suggested that since the size of the order is not large, a detailed study of the factors determining the choice of channels of distribution is required before making the right choice.
(a) Identify the factor influencing the choice of channels of distribution which were discussed in the meeting.
(b) Also, explain briefly the other consideration to be taken care of in each factor identified in part (a).

Q24. Aman Chadha started ‘Bulls Eye’ a company for providing cyber security solutions to businesses. Its objective is to prevent, detect and respond to cyber attacks and protect critical data. He was a hardworking software engineer and an expert in cyber security. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day.

He was delighted when he was offered a big project by the Ministry of Defence. While working on the project, he found that the volume of work made it impractical for him to handle all the work by himself. He decided to expand the team. The company maintained a close liaison with a local engineering college. During a campus placement, Ishan and Vrinda were appointed to work for the new project.

He found the new employees capable, enthusiastic and trustworthy. Aman Chadha was thus, able to focus on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not only this Aman Chadha was also able to extend his area of operations. On the other hand Ishan and Vrinda also got opportunities to develop and exercise initiative.
(i) Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in focusing on objectives.
(ii) Also, state any four points of importance of the concept identified in (i) above.

Q25. Explain briefly any four factors that affect the working capital requirement of a company.

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