RBSE 12th Business Studies Model Paper Set 5 with Answers in English

Students must start practicing the questions from RBSE 12th Business Studies Model Papers Set 5 with Answers in English Medium provided here.

RBSE Class 12 Business Studies Model Paper Set 5 with Answers in English

Time : 2 Hours 45 Minutes
Maximum Marks : 80

General Instructions for the Examinees :

1. Candidate must first write his/her Roll No. on the question paper compulsorily.
2. All the questions are compulsory.
3. Write the answer to each question in the given answer book only.
4. For questions having more than one part, the answers to those parts must be written together in continuity.

Section – A

Question 1.
Objective Type Questions (1 × 12 = 12)
(i) Mrs. Rita wants to buy a packet of mango frooty for herself. As an aware customer, how can she be sure about the quality of mango frooty that she is planning to buy? (1)
(a) ISI Mark
(b) FPO Mark
(c) Hallmark
(d) Agmark
Answer:
(b) FPO Mark

(ii) Priyanka purchased a watch from Titan Raga Store. As a proof of a purchase, what should she ask for? (1)
(a) Invoice
(b) Cash memo
(c) Warranty card
(d) None of the above
Answer:
(b) Cash memo

(iii) Which of the following statements is not correct? (1)
(a) In zero level channel, goods are directly made available to customers from manufacturers.
(b) In one level channel, goods are made available from manufacturers to retailers then to
customers.
(c) In two level channel, goods are made available from manufacturer to agent and then to retailers.
(d) None of the above
Answer:
(c) In two level channel, goods are made available from manufacturer to agent and then to retailers.

(iv) Personal selling creates effective demand which results in increasing the income. With the increase in the income there will be more product and services produced, which will bring economic growth for the nation”. This statement signifies the importance of personal selling to- (1)
(a) Businessmen
(b) Customers
(c) Society
(d) None of the above
Answer:
(c) Society

(v) Varun Madan, the marketing manager of lotus cosmetics, is facing the problem of poor sales. Which mode of communication can he adopt to target mass population? (1)
(a) Newspaper
(b) Television
(c) Radio
(d) All of the above
Answer:
(d) All of the above

(vi) SEBI is a regulator of- (1)
(a) Capital market
(b) Money market
(c) Commodity market.
(d) Overseas market
Answer:
(a) Capital market

(vii) Which is the institution that provides a platform for trading of existing securities having long-term maturity? (1)
(a) SEBI
(b) WTO
(c) Stock exchange
(d) RBI
Answer:
(c) Stock exchange

(viii) A strategy is a comprehensive plan which does not include the following dimension- (1)
(a) Allocating resources necessary to achieve the objective
(b) Determining long term objectives
(c) Adopting a particular course of action
(d) The ends which the management seeks to achieve by its operations
Answer:
(d) The ends which the management seeks to achieve by its operations

(ix) It is not always true that just because a plan has worked before, it will work again. Identify the related limitation of planning- (1)
(a) Planning does not guarantee success.
(b) Planning reduces creativity.
(c) Planning leads to rigidity.
(d) Planning may not work in a dynamic environment.
Answer:
(a) Planning does not guarantee success.

(x) Which of the following is a good source of filling the vacancies with employees from over staffed departments?(1)
(a) Promotion
(b) Placement agencies
(c) Transfer
(d) Government exchanges
Answer:
(c) Transfer

(xi) Which of these is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation? (1)
(a) Recruitment
(b) Training
(c) Selection
(d) Orientation
Answer:
(a) Recruitment

(xii) Amrita filed a case against “Daewoo Motors” in the state Commission. However, she was not satisfied with their orders. Name the authority to which she can appeal against decision of state commission. (1)
(a) National Commission
(b) Supreme Court
(c) District Commission
(d) None of these
Answer:
(a) National Commission

Question 2.
Fill in the Blanks (1 × 6 = 6)
(i) Principles of management are ……………. in nature. (1)
(ii) The ……………. should become united in the form of consumer’s organisations which will take care of welfare. (1)
(iii) Earning sufficient profits to cover various risks of business is alan ……………….. objective of management. (1)
(iv) Under …………….. philosophy of marketing, efforts are made to bring down the cost of production to the minimum. (1)
(v) ……………. refers to the process of searching for prospective employees and stimulating them to apply for jobs in an organisation. (1)
(vi) …………….. is the type of plan which quantifies future figures and facts. (1)
Answer:
(i) creative
(ii) consumers
(iii) organizational
(iv)Production Concept
(v) Recruitment .
(vi) Budget.

Question 3.
Very Short Answer Type Questions (1 × 12 = 12)
(i) Give any one responsibility of a consumer in addition to obtaining cash receipt while purchasing a washing machine. (1)
Answer:
A customer must check for quality assurance mark like ISI or FPO

(ii) Define the term market in traditional sense. (1)
Answer:
In traditional sense, the term market means a particular place where the buyers and sellers meet each other and make deals regarding sale or purchase of products.

(iii) What do you mean by training? (1)
Answer:
Training may be defined as a process through which the skills, performance and ability of the employees are enhanced.

(iv) What do you mean by trade test? (1)
Answer:
Trade tests measure the existing skills of the candidate. Trade tests measure the level of knowledge and proficiency in the sphere of professions or technical training.

(v) State the elements of directing. (1)
Answer:

• Motivation,
• Leadership,
• Supervision.

(vi) State the types of communication. (1)
Answer:
Generally, communication is classified into two types:

• Formal communication
• Informal communication.

(vii) What is meant by decoding as an element of communication ? (1)
Answer:
Decoding is the process of converting encoded symbols of the sender.

(viii) Name the term used in management for influencing people to strive willingly for group objectives. (1)
Answer:
Leadership influences people to strive willingly for group objectives.

(ix) Sunny works as a manager in BSTL Ltd. Besides the salary, the company offers him benefits like free housing, medical aid and education to his children, etc. Identify the type of incentive being offered to him. (1)
Answer:
Perquisites.

(x) Give the meaning of method as a type of plan. (1)
Answer:
Method provides the precribed ways in which work is to be performed considering the objective.

(xi) Rama Stationery Mart has made a decision to make all the payments by e-transfers only. Identify the type of plan adopted by Rama Stationery Mart. (1)
Answer:
The plan that has been adopted by Rama Stationery is ‘Policy’.

(xii) Differentiate between ‘Single Use Plan’ and ‘Standing Plan’ on the basis of meaning. (1)
Answer:
Single use plan is a one time plan specifically designed to achieve a particular goal that once achieved will not recur in the future. A standing plan is used for activities that occur regularly over a period of time.

Section – B

Short Answer Type Questions-I. (2 × 13 = 26)

Question 4.
What are the main dimensions of management? (2)
Answer:
Main dimensions of management are as follows:

• Management of work
• Management of people
• Management of operations.

Question 5.
Explain briefly ‘Remuneration of Employees’ and ‘Scalar Chain’ as general principles of management. (2)
Answer:
Remuneration of employees- It states that the remuneration of employees should be just and equitable. Employees should be paid fair wages, which should give them at least a reasonable standard of living. At the same time, it should be within the paying capacity of the company.

Scalar Chain: It refers to chain of authority and communication that runs from top to bottom and should be followed by the managers and the subordinates. For example- There is one head A who has two lines of authority under him, B-C-D and L-M-N. If C has to communicate with M who is at the same level of authority, then he has to transverse the route D-C-B-A-LM-N due to the principle of scalar chain. However, if there is an emergency, then C can directly contact M through gang plank.

Question 6.
Planning reduces creativity. Critically comment. (Hint: both the points – Planning: promotes innovative ideas and planning reduces creativity – will be given). (2)
Answer:
Planning promotes innovative ideas: Since planning is the foremost function of management, new ideas can take the shape of real and concrete plans. This is the most challenging activity for management because it guides all the future actions leading to growth and prosperity of the organisation.

Planning reduces creativity: Planning is performed by the top management and the remaining members usually just implement these plans. As a result of this, middle management and other decision makers are not allowed to deviate from plans or to implement them as per their own discretion. Thus, much of the initiative or creativity present in them also gets eliminated or reduced. Many times, employees do not even attempt to formulate plans and they only carry out the orders of their superiors. Thus, in one sense, planning reduces creativity as people. tend to think along the same lines as others and thus there is nothing new or innovative in the organisation.

Question 7.
Distinguish between training and development. (2)
Answer:

Training	Development
1. Training is a process of enhancing knowledge and skills.	1. Development is a process of learning and growth.
2. Training is provided to enable the employees to perform a task better.	2. Development facilitates all-round growth of the employees.
3. This is a job-oriented process.	3. This is a career-oriented process.

Question 8.
State ‘Job Enrichment’ and ‘Employee Participation’ as non-financial incentives. How do they motivate employees? (2)
Answer:
Job Enrichment:

• Job Enrichment means designing jobs that include greater variety of work ;” content, require higher level of knowledge and skill, give workers more autonomy and responsibility and provide the opportunity for personal growth and a meaningful work experience.
• If jobs are enriched and made more interesting, the job itself becomes a source of motivation to the individual.

Employee Participation:

• Employee Participation means giving more autonomy and powers to the employees.
• It makes them feel that their jobs are important and this feeling makes them contribute positively to the use of their skills and talents in the job performance.

Question 9.
How does management create a dynamic environment? (2)
Answer:
The environment is constantly changing and all types of organisations have to function in such scenario. It is normally observed that persons working in an organisation resist changes as it often implies moving from a familiar and secure environment into a newer and a more challenging one. Management assists the individuals adapt to these changes so that the organisation is able to retain its competitive edge.

Question 10.
State the constitution of District Consumer Disputes Redressal Forum under CPA 2019. (2)
Answer:
Each District Commission consists of a President who is qualified to be a district judge and not less than 2 or more number of members who are appointed in consultation with the Central Government.

Question 11.
Explain the meaning of product and product liability. (2)
Answer:
Product: Any article or good or substance or raw material or any extended cycle of such product either in gaseous, liquid or solid state, possessing intrinsic value capable of delivery either as assembled or a component produced or manufactured to trade. It does not include human tissues, blood, blood products and organs.

Product Liability: Responsibility of a product manufacturer or seller of any product or service to compensate for any harm caused to a consumer by defective product manufactured or sold or by deficiency in services.

Question 12.
Write down the role of marketing in the economy. (2)
Answer:
Marketing is not merely a business phenomenon or confined only to business organizations. By adopting marketing orientation, an organization whether profit making or non-profit making, can achieve its goals in the most effective manner. Marketing activities are equally relevant to Nonprofit organizations (NPO) such as – Hospitals, schools, sports clubs, social and other religious organizations. Marketing helps these organizations in achieving their goals, like spreading the message of family planning, improving the rate of literacy, improving the standard of living of people, providing medication to the sick people etc.

Question 13.
What do you mean by marketing mix? (2)
Answer:
Marketing mix refers to a combination of different factors/ variables chosen by a firm to prepare its market offering. It is a set of marketing tools that the firm uses to pursue its marketing objectives in a target market. According to PHILIP KOTLER, “The firm’s task is to find the best setting for its marketing decision variables. This setting constitutes its marketing mix.”

Question 14.
Explain any four functions of Stock Exchange. (2)
Answer:
Functions of Stock Exchange are:

• Providing liquidity and marketability to existing securities.
• Pricing of securities.
• Safety of transactions.
• Contributes to economic growth.

Question 15.
Explain any four methods of floatation of new issues in the primary market. (2)
Answer:
Methods of floatation of new issues in the primary market: (Any four)

• Offer through Prospectus.
• Offer for Sale
• Private Placement
• Rights Issue.

Question 16.
What is the meaning of Principles of Management ? (2)
Answer:
Principles of management refer to broad and general guidelines for managerial decision making process. Management principles are not rigid as the principles of science and they deal with human behaviour, and should, therefore, be applied creatively according to the demand of the situation.

Section – C

Short Answer Type Questions-II (4 × 3 = 12)

Question 17.
(i) State any two ‘Developmental Functions’ of Securities and Exchange Board of India. (3)
(ii) What is meant by ‘Allocative Function’ of Financial Markets?
Or
State any three protective functions of Securities and Exchange Board of India.
Answer:
Developmental functions of SEBI: (Any two)

1. It trains intermediaries of the securities market.
2. It conducts research and publishing information useful to all market participants.
3. It undertakes measures to develop the capital markets by adapting a flexible approach.

Allocative function of financial market means allocating or directing funds available for investment into their most productive investment opportunity.

Question 18.
‘Expenditure on advertising is a social waste.’ Do you agree? Discuss. (3)
Or
Write down the advantages of packaging.
Answer:
Advertising expenditure is considered as a social waste due to multiple factors, such as-it adds to cost of the production of the company, and also increases customer requirements for more such products. Following points will help in determining whether advertising is a social waste or not.

1. Advertising is high cost intensive: the businesses thus pass on this cost to the consumers at the time of determining the price of the product. But the positive point that can be seen is that advertisement can help in reducing cost of production by increasing customer demand for the product.

2. The major point which impacts advertising is that weakens the social values and promotes the sense of materialism in the society. Customers want to acquire any new product to fulfil their desires. But this process will run forever as long as any new product is prepared.

3. Advertisements are said to create confusion among customers as so many different varieties of same product will be available in the market. Customers get confused as to which brand to buy.

4. Advertisement is done for both good and bad quality products. Again, good and bad quality concept will vary from customer to customer.

5. Advertisements are said to erode social values by using content, images, action, gestures or language, which is not acceptable by all sections of society. Again, the same rule will apply that what is perceived as bad by someone may be seen as good by the other.

Question 19.
Explain ‘order’ and, ‘initiative’ as principles of general management. (3)
Or
Explain ‘science, not rule of thumb’ as a principle and ‘time-study’ as a technique of scientific management.
Answer:
Order- According to Fayol, ‘People and material must be in suitable place at appropriate time for maximum efficiency’. This principle states that there should be a place for everything and everyone in an organisation and that thing or person should be found at its alloted place. This will lead to increased productivity and efficiency.

Initiative- According to Fayol, ‘Initiative means taking the first step with self motivation, it is thinking out and executing the plan’. It is one of the traits of an intelligent person. Initiative should be encouraged because employees get satisfaction when they are allowed to take initiative. But it does not mean going against the established practices of the company for the sake of being different.

Question 20.
State the steps in the selection procedure, after the employment interview and before the job offer. (3)
Or
Explain any three benefits of external sources of recruitment.
Answer:
Steps in the Selection procedure, after the employment interview and before the job offer are:

• Reference and background checks for the purpose of verifying the information and gaining additional information.
• Selection decision from among the candidates who pass the tests, interviews and reference checks.
• Medical Examination, which includes a medical fitness test which the candidate is required to undergo.

Section – D

Long Answer Type Questions (3 × 4 = 12)

Question 21.
Write the major object of management. (4)
Or
Science is a systematized body of knowledge that ex lains certain general truths or the operation of general laws. In the light of this statement, describe management a science.
Answer:
Objectives of Management:
Management is a process to achieve the objectives which are formulated by organizations, individuals or by group of individuals. These objectives are achieved by the series of functions performed by the management. The major objectives of management can be classified into three groups.

(a) Organisational objectives:
Management is responsible to formulate and to achieve the organizational objectives. The common aim of any organization is to maximize its profit by the optimum utilization of the available resources. The general organizational objectives can be classified as : (1) Survival, (2) Profit, (3) Growth.

(b) Social Objectives: Social objectives of an organisation involve the creation of advantages for the society. Consistently creating economic value for various constituents of society is included in it. This can be done by using environmental friendly methods of production, providing employment opportunities to the disadvantaged sections of society and providing basic amenities such as schools and creches to the families of employees.

(c) Personal Objectives: All individuals become part of the organisation to satisfy their different requirements. These may include financial requirements like competitive salaries and perks, social requirements like peer recognition and higher level requirements like personal growth and development. Reconciliation of personal goals with organizational objectives is essential for management in order to bring harmony and coordination in the organisation.

Question 22.
Explain the principle of ‘Scalar Chain’ and Gang Plank. (4)
Or
Explain Fayol’s principles of ‘equity’ and ‘order’ with examples.
Answer:
The formal lines of authority from highest to lowest ranks are known as scalar chain of an organisation, which consists of superiors and subordinates. In the words of Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.”

For example, there is one head ‘A’ in an organisation who has two lines of authority under him. One line consists of B-C-D-E-F. Another line of authority under ‘A’ consists of L-MN-O- P. If ‘E’ has to communicate with ‘O’ who is at the same level of authority then he has to traverse the route E-D-C-B-A-L-M-N-O. This is owing to the principle of scalar chain which is being followed in this situation. Fayol suggests that this chain should not be violated in the normal course of formal communication. However, in case of an emergency, ‘E’ can directly contact ‘O’ through ‘Gang Plank’ as illustrated in the figure given below. This is a shorter route and it has been provided in order to prevent any delay in communication.

In practice also, it is observed that an employee cannot contact the CEO of the company directly. In order to do so, he has to inform all the formal levels, i.e., foreman, superintendent, manager, director etc about it. Anyway, in an emergency, it may be possible that an employee can contact the CEO of the company directly.

Fayol’s Scalar Chain

Question 23.
Explain the principles of directing in detail. (4)
Or
Explain the meaning and any four characteristics of directing.
Answer:
Following is the description of several guiding principles of directing that may help in directing process:
(i) Maximum individual contribution: This principle insists that directing techniques must help every employee in the organisation to realise his maximum potential for the accomplishment of organisational objectives. It should bring out untapped energies of people to enhance the efficiency of the organisation.

(ii) Harmony of objectives: Many times, it is seen that individual objectives of employees and the organizational objectives as understood are conflicting in nature to each other. For example, an employee may expect an attractive salary and monetary benefits to fulfill his personal requirements, while an organisation may expect its employees to enhance productivity to achieve anticipated profits. But, efficient directing should provide harmony by convincing that employee rewards and work efficiency are complimentary to each other.

(iii) Unity of Command: This principle emphasises that every subordinate in the organisation should receive instructions from one superior only. If instructions are received from more than one person, it creates confusion, conflict and disorder in the organisation. Following this principle ensures effective direction.

(iv)Appropriateness of direction technique : According to this principle, appropriate motivational and leadership techniques should be used while directing the employees on the basis of subordinate needs, capabilities, attitudes and other situational variables.

(v) Managerial communication: Effective managerial communication across all the levels in the business organisation makes direction effective. In order to create total understanding to subordinates, direction should convey clear instructions to them. Through proper feedback, the managers should ensure that subordinates understand his instructions clearly.

(vi) Use of informal organisation: Informal groups or organisations exist within every formal organisation. Realizing this, the managers should identify and make use of such organisations for effective directing.

(vii) Leadership: The managers should exercise good leadership while directing their subordinates as it can influence the subordinates positively without creating dissatisfaction among them.

(viii) Follow through: On one hand, the managers should provide clear orders to their subordinates and on the other hand they should follow it up by reviewing continuously whether orders are being executed accordingly or any problems are being faced in it. Suitable modifications should also be made in the directions as and when required.