RBSE 12th Business Studies Model Paper Set 6 with Answers in English

Students must start practicing the questions from RBSE 12th Business Studies Model Papers Set 6 with Answers in English Medium provided here.

RBSE Class 12 Business Studies Model Paper Set 6 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) Mr. Sandeep purchased a diesel car of ₹ 7 lakhs from an automobile company and found that its engine is defective. Despite many complaints, the company did not rectify his complaint. As a legal advisor, suggest Mr. Sandeep appropriate authority where he can file his complaint under CPA. (1)
(a) Supreme Court
(b) National Commission
(c) State Commission
(d) District Commission
Answer:
(d) District Commission

(ii) Under receiver machinery where can a legal heir or representative of a deceased consumer file a complaint when the amount of compensation claimed is 2.5 Crores? (1)
(a) District Commission
(b) National Commission
(c) State Commission
(d) None of these
Answer:
(c) State Commission

(iii) Maintaining good public relations helps in achieving which of the following marketing objectives? (1)
(a) Building awareness
(b) Building credibility
(c) Stimulating salesforce
(d) All of the above
Answer:
(d) All of the above

(iv) Which type of distribution channel is used by Flipkart ? (1)
(a) Direct distribution
(b) One level distribution
(c) Two level distribution
(d) Three level distribution
Answer:
(a) Direct distribution

(v) Which of the following acts as a silent salesman ? (1)
(a) Product
(b) Price
(c) Packaging
(d) Promotion
Answer:
(c) Packaging

(vi) The mandatory detail that an investor has to provide to the broker at the time of opening a demat account is (1)
(a) Date of birth and address
(b) PAN number
(c) Residential status (Indian/NRI)
(d) Bank account details.
Answer:
(b) PAN number

(vii) After the trade has been executed, the broker issues a Contract Note within- (1)
(a) 24 hours
(b) 12 hours
(c) 36 hours
(d) 48 hours
Answer:
(a) 24 hours

(viii) Which of the following details the exact manner in which a task is to be performed? (1)
(a) Methods
(b) Procedures
(c) Programmes
(d) Rules
Answer:
(b) Procedures

(ix) Planning requires logical and systematic thinking rather than guess work or wishful thinking. Identify the related feature of planning- (1)
(a) Planning establishes standards for controlling.
(b) Planning focuses on achieving objectives.
(c) Planning is a mental exercise.
(d) Planning is futuristic.
Answer:
(c) Planning is a mental exercise.

(x) Which of these is an external source of recruitment? (1)
(a) Advertising on television
(b) Transfer
(c) Casual callers
(d) Both (a) and (c)
Answer:
(d) Both (a) and (c)

(xi) Which of the following tests measures emotions, reactions and maturity of a candidate? (1)
(a) Trade test
(b) Personality test
(c) Aptitude test
(d) Intelligence test
Answer:
(b) Personality test

(xii) ……………… can be the president of National Consumer Dispute Redressal Commission. (1)
(a) Judge of high court
(b) Judge of Supreme Court
(c) Lawyer of a district court
(d) Lawyer of Supreme Court
Answer:
(b) Judge of Supreme Court

Question 2.
Fill in the Blanks (1 × 6 = 6)
(i) General theory of administration is propounded by ……….. (1)
(ii) A businessman can get rid of the …………… interference and maintain his goodwill by becoming partner of the consumer protection. (1)
(iii) Management is regarded to be multidimensional because it has …………… (1)
(iv) The …………… concept of marketing lays emphasis on quality of goods and services. (1)
(v) ………….. refers to the employee occupying the position or post for which the person has been selected. (1)
(vi) ………….. is the essence of planning. (1)
Answer:
(i) Henry Fayol
(ii) government
(iii) three dimensions
(iv) Product
(v) Placement
(vi) Thinking in advance

Question 3.
Very Short Answer Type Questions (1 × 12 = 12)
(i) What is to be informed under Right to be information? (1)
Answer:
A consumer has right to obtain true and complete information about the product that he wishes to buy, like its ingredients, date of manufacture, price, quantity, directions for use etc.

(ii) State the basis of marketing. (1)
Answer:
The three main basis of marketing are:

1. Market,
2. Customer,
3. Marketer/Seller.

(iii) State any two benefits of training to organisation. (1)
Answer:

1. Increase in production.
2. Decline in the cost of production.

(iv) State any two benefits of training to employees. (1)
Answer:

1. Increase in the working capacity of the employees.
2. High morale of the employees.

(v) What do you mean by motivation? (1)
Answer:
Motivation implies incitement or inducement to act or move. In the context of an organisation, it refers to the process of making subordinates act in a desired manner to achieve various pre-determined organisational objectives.

(vi) State two characteristics of ‘Directing’. (1)
Answer:
Characteristics of directing are :

1. It takes place at every level.
2. It is a continuous process.

(vii) What is meant by feedback in the concept of communication ? (1)
Answer:
The action of the receiver, which reciprocates to the sender of the messge, that he has understood the messge in its-true sense is called feedback.

(viii) Define formal communication. (1)
Answer:
Formal communication refers to the official communication which takes place through the chain of command.

(ix) Puja recently got a raise in her salary owing to annual increment. Which of her human needs is being satisfied through this? (1)
Answer:
Basic physiological needs.

(x) Define planning premises. (1)
Answer:
Premises refers to making assumptions regarding future. Premises are the basis on which plans are made. It is a kind of forecast made, keeping in view existing plans and any past information about various policies.

(xi) How does planning provide direction? (1)
Answer:
Planning provides direction for action by telling in advance how work is to be done in the future.

(xii) How are ‘Policies’ and ‘Procedures’ interlinked? (1)
Answer:
‘Policies’ and ‘Procedures’ are interlinked, as procedures are steps to be carried out within a broad policy framework to enforce a policy.

Section – B

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

Question 4.
How is management a continuous process? (2)
Answer:
The process of management includes a series of continuous, complex, but separate functions (planning, organising, directing, staffing and controlling). These functions are simultaneously performed by all the managers all the time. The task of a manager involves an ongoing series of functions.

Question 5.
Explain briefly about the early perspective of the development of management. (2)
Answer:
Early Perspective- 3000-4000 BC was the era that recorded the first known management ideas. The Egyptian ruler Cheops built a pyramid in 2900 BC and its construction required work to be done by 100,000 men for more than twenty years. It was spread in 13 acres of land and was 481 meters in height. The stone slabs had to be carried for thousands of kilometres. According to mythological evidence, even the sound of a hammer was not heard in the villages in the proximity of the site of these pyramids. Without complying to the principles of sound management, such monumental work could not become a reality.

Question 6.
In an attempt to cope with Reliance Jio’s onslaught in 2018, market leader Bharti Airtel has refreshed its 149 prepaid plan to offer 2 GB of 3G/4G data per day, twice the amount it offered earlier. Name the type of plan is highlighted in the given example? State its three dimensions also. (2)
Answer:
The type of plan that was adopted by Bharti Airtel is ‘Strategy’. A strategy is a general plan formed by top management, providing guidelines regarding allocation of resources and priorities, taking into consideration business environment and competition. It also refers to future decisions defining the organisation’s direction and scope in the long run. A strategy is a comprehensive plan, having the following three dimensions- (i) Determining long-term objectives, (ii) Adopting a specific course of action, and (iii) Allocating resources which are needed to achieve the objective.

Question 7.
Why are internal sources of recruitment considered to be more economical? (2)
Answer:
As only existing employees are used to recruit the employees for the newer post, there is no cost added of recruiting the new employee. It saves the selection cost, training and development cost and other hidden costs also. This is why, internal sources of recruitment are considered as more economical.

Question 8.
A reputed hostel, Gyan Prakash provides medical aid and free education to children of its employees. Which incentive is being highlighted here? State its category and name any two more incentives of the same category. (2)
Answer:
In the above case, Gyan Prakash is providing financial incentives to its employees in the form of medical aid and free education. Two other types of incentives in the same category are as follows:
(i) Profit Sharing: Profit sharing aims at providing a share to the workers in the profits of the organisation. This helps to motivate the employees to improve their performance and contribute to increase in profits of the organisation.

(ii) Retirement Benefits: Various retirement benefits like provident fund, pension and gratuity provide financial security to the workers after their retirement. This serves as an incentive when they are providing their services in the organisation.

Question 9.
Explain any two characteristics of a profession. (2)
Answer:
The two characteristics of a profession are as follows:

1. Well-defined body of knowledge: All types of professions are based on a well-defined body of knowledge which can be obtained through instructions.
2. Restricted entry: Entry to a profession is restricted through an examination or through acquiring an educational degree.

Question 10.
Explain the right to be informed. (2)
Answer:
Right to be informed – A consumer has right to obtain true and complete information about the product that he wishes to buy, like its ingredients, date of manufacture, price, quantity, directions for use etc. For this purpose, in India, it is a legal requirement for the manufacturer to provide complete information on the package and the label of the product.

Question 11.
Explain the right to seek redressal. (2)
Answer:
Right to seek redressal – The consumer has right to get relief against any kind of unfair or unscrupulous trade practice in case the goods or service do not confirm to the promised standards. The Consumer Protection Act, 2019 provides for easy redressal to the consumer that includes replacement of defective product, removal of defect in the product, compensation paid in case of loss or injury suffered by the consumer, taking back the product with refund of money etc.

Question 12.
Define the following terms- (2)
(a) Brand
(b) Brand name.
Answer:
(a) Brand – A brand is a special word, symbol, letter, term, sign, symbol, design, or some combination of them for the identification of a product. For example – Nike, Reebok, LG, etc.

(b) Brand name – The part of a brand which can be spoken is called brand name. In other words, we can say it is the verbal part of a brand. For example – we can speak brand names of products like Maggi, Lux, Ambuja Cement, Asian Paints and Uncle Chips etc.

Question 13.
Define the following terms – (2)
(a) Brand mark.
(b) Trade mark.
Answer:
(a) Brand mark – That part of a brand which cannot be spoken but can be recognized easily is known as brand mark. For example – Maharaja sign of Air India, red and blue ball of Pepsi, Apple sign of Apple Inc, Gattu of Asian Paints, Yog Kshma of LIC, devil of Onida etc.

(b) Trade mark – The part of the brand which is given legal protection by registering under the trademarks act 1999 is referred to as trade mark. No other firm can use a name or sign for which company gets legal protection. For example – Maruti Suzuki sign on Maruti cars is a trademark which can only be used by Maruti. The basic difference between brand and Trademark is that all the trademarks are brands whereas all the brands are not trademarks.

Question 14.
Differentiate between Money Market and Capital Market on the following basis: (2)
(a) Expected return
(b) Safety
(c) Liquidity
(d) Instruments.
Answer:
Difference between Money Market and Capital Market

Basis	Money Market	Capital Market
(a) Expected Return	Money market securities yield comparatively less return.	Generally capital market securities yield a higher return than money market instruments.
(b) Safety	Money market securities are comparatively safer.	Capital market securities are riskier than money market instruments.
(c) Liquidity	Money market securities are comparatively more liquid.	Capital market securities are comparatively less liquid
(d) Instruments	Instruments like treasury bill, commercial paper, certificates of deposit, call money and commercial bill are traded in money market.	Instruments like shares, debentures and bonds are traded in Capital market.

Question 15.
Differentiate between Primary Market and Secondary Market on the following basis: (2)
(a) Company involvement
(b) Price determination
(c) Location
(d) Capital formation.
Answer:

Basis	Primary Market	Secondary Market
(a) Company Involvement	Securities are sold by the company to the investors.	Ownership of existing securities is exchanged between investors; company is not involved.
(b) Price Determination	Prices are determined by the management of the company.	Prices are determined by the forces of demand and supply of securities.
(c) Location	No fixed geographical location.	Located at specified places.
(d) Capital Formation	Directly promotes capital formation.	Indirectly promotes capital formation.

Question 16.
What is the significance of Principles of Management ? Describe briefly. (any two) (2)
Answer:
(i) Providing managers with significant insights into reality: Following these principles of management adds to the managers’ knowledge, ability and understanding of managerial situations and circumstances and the principles of management provide the managers with useful insights into real world situations.

(ii) Optimum utilisation of resources and effective administration: Every company has limited availability of human and material resources which have to be put to optimum use, i.e., they should be put to use in such a manner that they provide maximum benefit with minimum cost.

Section – C

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

Question 17.
Distinguish between Capital Market and Money Market. (3)
Or
Explain any three objectives of Securities and Exchange Board of India.
Answer:
Following are some of the important differences between capital market and money market:

Basis of Difference	Capital Market	Money Market
(i) Time period	This market is for long term period (for more than one year).	This market is for short term period (generally less than one year).
(ii) Liquidity	This market is less liquid as compared to money market.	This market is more liquid as compared to capital market.
(iii) Major instruments	The major instruments of this market are shares and debentures.	The major instruments of this market are commercial paper, treasury bill, call money, commercial bills etc.
(iv) Regulator	This market is regulated by SEBI.	This market is regulated by RBI.
(v) Return	Investors generally get higher return by investing in this market.	Investors generally get less return by investing in this market.

Question 18.
Draw a diagram showing classification of products. (3)
Or
Why is it considered important to have a brand name?
Answer:

Question 19.
Explain how principles of management : (3)
(i) provide useful insight into reality and
(ii) help in thoughtful decision-making.
Or
Explain the technique of scientific management, i.e. the extension of principle of division of work and specialisation.
Answer:
(i) Provide useful insight into reality- The principles of management provide useful insight into real world situations. Managers may apply these principles to fulfil their takes and responsibilities. These principles guide the managers in taking and implementing thoughtful decisions.

(ii) Thoughtful decision- makingThese principles help in enhancing knowledge, ability and understanding of managerial situations and circumstances. They msut be timely, realistic and subject to measurement and evaluation. They emphasise logic rather than blind faith and are free from bias and prejudice.

Question 20.
Explain briefly ‘transfers’ and ‘promotions’ as internal sources of recruitment.’ (3)
Or
Explain the procedure for selection of employees.
Answer:
Transfers:

• Transfers involve shifting of an employee from one job to another, one department to another or from one shift to another, without a substantive change in the responsibilities and status of the employee.
• It may lead to changes in duties and responsibilities, working condition etc., but not necessarily salary.

Promotions:

1. Promotions involve shifting an employee to a higher position, carrying higher responsibilities, facilities, status and pay.
2. This practice helps to improve the motivation and increases loyalty and satisfaction level of employees.

Section – D

Long Answer Type Questions (3 × 4 = 12)

Question 21.
Explain the organizational objectives of management. (4)
Or
Explain the functions performed by a supervisor.
Answer:
Organisational Objectives :
Setting and achieving objectives for the organisation is the responsibility of management. Management has to achieve various objectives in all spheres keeping in mind the interest of all stakeholders including shareholders, employees, customers and the government. Utilizing human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business, i.e., survival, profit and growth, should be the primary objective of every organisation.

(a) Survival : Survival is the basic objective of every business. Management must make all efforts to ensure the survival of the organisation, and in order to survive, an organisation must earn enough revenues to cover all its costs.

(b) Profit : Management has to ensure that the organisation makes a profit because only surviving is not enough for a business. Profit provides an essential basis for the continued successful operation of the organisation. Profit is inevitable for covering various costs and risks of the business.

(c) Growth : It is important for the business to grow in order to add to its prospects in the long run. Management must fully explore the growth potential of the organisation in order to remain in the industry. Growth of a business can be measured in terms of sales volume, increase in the number of employees, increase in the number of products, increase in capital investment, etc. There can be several other indicators of growth also.

Question 22.
Discuss the differences between the contributions of Taylor and Fayol. (4)
Or
Explain the following principles of Fayol with the help of one example for each :
(i) Discipline (ii) Unity of command.
Answer:

Basis of Difference	Henry Fayol	F. W. Taylor
(i) Perspective	Top level of management	Shop floor level of a factory
(ii) Unity of Command	Ardent supporter	Does not hold much importance, because under functional foremanship, a worker receives orders from eight experts
(iii) Applicability	Is applicable universally	Is applicable in specialized circumstances
(iv) Basis of Formation	Personal experience	Experimentation and observation
(v) Focus	Improvement in the entire administration	Increase in productivity
(vi) Personality	Practitioner	Scientist
(vii) Expression	General theory of administration	Scientific management

Question 23.
(i) Explain the process of motivation with the help of a diagram. (4)
(ii) State the different networks of grapevine communication.
Or
Communication plays a key role in the directing function of management. Do you agree? Give any four reasons in support of your answer.
Answer:
(i) The process of motivation is based on human requirements. An unsatisfied need of a person creates tension that stimulates his drives which generates search behaviour to satisfy the particular need. The person is relieved of tension when such need is satisfied.

(ii) Grapevine communication may follow various types of network. In single strand network, every individual communicates with the other in sequence. In gossip network, every individual communicates with all others on non-selective basis. In probability network, the individual communicates randomly with another individual. In cluster network, the individual communicates with only those individuals whom he trusts.