Students must start practicing the questions from RBSE 12th Business Studies Model Papers Set 7 with Answers in English Medium provided here.
RBSE Class 12 Business Studies Model Paper Set 7 with Answers in English
Time : 2 Hours 45 Minutes
Maximum Marks : 80
General Instructions for the Examinees :
- Candidate must first write his/her Roll No. on the question paper compulsorily.
- All the questions are compulsory.
- Write the answer to each question in the given answer book only.
- For questions having more than one part, the answers to those parts must be written together in continuity.
Section – A
Objective Type Questions (1 × 12 = 12)
(i) Which of the following is a relief available to a consumer under the Consumer Protection Act? (1)
(a) To remove the defect in goods or deficiency in services.
(b) To replace the defective good with the new one free from any defect.
(c) To refund the price paid for the product or charges paid for the service.
(d) All of the above
(d) All of the above
(ii) Who among the following cannot file a complaint? (1)
(a) Individual consumer
(b) Central Government and state government
(c) Consumer Association that has not been recognized
(d) None of the above
(c) Consumer Association that has not been recognized
(iii) Which of the following functions is restricted to promotion of goods and services through salesmanship, so that title of the product is transferred from seller to buyer, or in other words, product is converted into cost ? (1)
(d) Physical distribution
(iv) The total cost of product includes- (1)
(a) production costs
(b) selling costs
(c) distribution costs
(d) All of these
(d) All of these
(v) Identify the process of classification of products into different groups, on the basis of some of its important characteristics. (1)
(c) Product mix
(vi) The National Stock Exchange of India was recognized as a stock exchange in (1)
(a) April, 1993
(b) April, 1992
(c) April, 1994
(d) April, 1991
(a) April, 1993
(vii) Bombay Stock Exchange was granted permanent recognition under the Securities Contract (regulation) Act in the year (1)
(viii) Which of these is not a standing plan? (1)
(ix) Which functionof management is considered as the base for all other functions ? (1)
(x) In staffing function, which combination of activities in sequential order is correct? (1)
(a) Recruitment, selection, training, placement
(b) Selection, training, recruitment, placement
(c) Recruitment, selection, placement, training
(d) Recruitment, training, selection, placement
(c) Recruitment, selection, placement, training
(xi) Recruitment of employees from outside the organisation is known as: (1)
(a) internal source of recruitment
(b) external source of recruitment
(b) external source of recruitment
(xii) Mr. Rajeev purchased a product and found it defective. The seller denied taking it back from her Advice Mr. Rajeev, within how much time can he find complaint under the Consumer Protect. ut from the date on which the cause of action has arisen? (1)
(a) Within 3 months
(b) Within 6 months
(c) Within a year
(d) Within 2 years
(d) Within 2 years
Fill in the Blanks (1 × 6 = 6)
(i) According to the “Cooperation, Not Individualism” principles of management, competition should be replaced by …………….. (1)
(ii) The ……………… right protects against goods and services which are hazardous to life and health. (1)
(iii) Management is an art and a ………… (1)
(iv) Gattu of Asian paints is an example of …………… (1)
(v) …………………. leads to shifting an employee to a higher position and entrusting greater responsibilities to him. (1)
(vi) …………… is the basis of all other functions of management. (1)
(ii) right to safety
Very Short Answer Type Questions (1 × 12 = 12)
(i) Which right of consumer protection provides safety to consumers against deficient services? (1)
Right to safety.
(ii) What do you mean by market offering ? (1)
Market offering refers to complete offer for a product or service having given features like size, quality, taste etc. at a certain price, available at a given outlet or location and so on. A good market offer is always prepared keeping in mind the needs and requirements of the customers.
(iii) The workers of a factory are unable to work on new machines and always demand for help of supervisor. The supervisor is overburdened with their frequent calls. Suggest the remedy. (1)
Proper training should be provided to the workers in order to bring the required skills in them to operate the machine without the help of the supervisor.
(iv) The quality of production is not as per standards. On investigation, it was observed that most of the workers were not fully aware of the proper operation of the machinery. What could be the way to improve the quality of production to meet the standards? (1)
The quality of the production can be improved by giving the workers proper training. It can also be concluded that on the job training should be provided to the workers in order to give them skill to operate the machinery smoothly.
(v) What do you mean by motive? (1)
A motive is an inner state that energises, activates or moves and directs behaviour towards the realization of organizational objectives.
(vi) Give the meaning of ‘Supervision’ as an element of directing. (1)
As an element of directing supervision means instructing, guiding and monitoring the subordinates to ensure that they perform their jobs in accordance with the plans and instructions.
(vii) What is meant by encoding as an element of communication ? (1)
The sender translates the messge into words, symbols, gestures or other symbols, which he feels, will make the receiver understand the message. This is known as encoding of message.
(viii) What is meant by informal communication ? (1)
Informal communication is communication that takes place without following the formal lines of communication.
(ix) The directing function takes place at which level of an organisation? (1)
Top level, Middle level and Lower level.
(x) Define planning. (1)
According to Koontz and O Donnell, “Planning is deciding in advance what to do, how to do it, when to do it and who is to do it”.
(xi) Name the type of plan which tells what is to be done and what is not to be done. (1)
Rules are the type of plan which tells what is to be done and what is not to be done.
(xii) What is meant by ‘Developing Premises’ in the process of planning? (1)
‘Developing Premises’ in the process of planning means making certain assumptions about future conditions which are considered to be the base upon which plans are to be drawn.
Section – B
Short Answer Type Questions-I (2 × 13 = 26)
What does top level management include? (2)
This consists of the senior- most executives of the organisation. They are generally referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president, etc. Managers from different functional levels, heading finance, marketing etc. constitute the team of top management.
Explain the principle of management, ‘Cooperation, Not Individualism’. (2)
Cooperation, Not Individualism:
In place of individualism, there should be full cooperation between the workers and the management. This principle is an extension of principle of ‘Harmony not discord’, according to which competition should be replaced by cooperation and both the management as well as the workers should realize that they are complimentary to each other. The workers should be considered as a part of management and they should be involved in taking various important decisions.
State the type of plan and state whether it is single use or standing plan: A type of plan which serves as a controlling device as well’. (Budget) (2)
Budget is a statement of anticipated results expressed in numerical terms. It is a plan quantifying future facts and figures. Budget represents various items in terms of figures and so it becomes easier to compare actual figures with expected figures and take subsequent corrective action. Hence, a budget serves as a control device from which deviations can be measured. As budget involves forecasting, so it is included in the ambit of planning. Budget is a single use plan.
A company is manufacturing paper plates and bowls. It produces 1,00,000 plates and bowls each day. Due to local festival, it got an urgent order of extra 50,000 plates and bowls. Explain the method of recruitment that the company should adopt in the given circumstances to meet the order. (2)
The company should use the ‘Labour Contractors’ source of recruitment method, as it will provide the requisite number of new employees within the stipulated time. As labour contractors maintain close contacts with the workers, hence they can provide the required number of unskilled labourers at a short notice. Workers are recruited through labour contractors, who themselves are employees of the organisation, perform the recruitment of the workers in the organisation. The demerits of this system are that if the contractor himself decides to leave the organisation, all the workers employed through him may also follow a similar suit.
State any two characteristics of ‘Directing’. (2)
Two features of directing function of management:
- While other functions prepare a setting for action, directing initiates action by people in the organisation towards attainment of desired objectives.
- Directing takes place at every level of management. Every manager from top executive to the supervisor performs the directing function.
- Directing flows from top to bottom through the organisation hierarchy. Every manager can direct his immediate subordinates and take instructions from his immediate boss.
Write a short note on staffing. (2)
Staffing : Staffing refers to finding the right people for the right job. Making sure that the right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation is a very important aspect of management. Also known as the human resource function, staffing involves activities like recruitment, selection, placement and training of staff personnel. System analysts and programmers are required by software development companies such as Infosys Technologies.
Explain the following rights- (2)
(i) Right to choose
(ii) Right to be heard.
(i) Right to choose – A consumer has the freedom to choose from the wide variety of products available in the market and no seller can influence his choice in an unfair manner. This would mean that the marketer should offer wide varieties of products in terms of quality, brand, prices, size etc. and allow a consumer to make comparison between different products at competitive prices.
(ii) Right to be heard – The consumer has right to file a complaint and to be heard in case of dissatisfaction with product or service. Many business firms, these days, have set up their own consumer service and grievance cell that helps consumers in swift redressal of their grievances. Many other consumer organisations are working towards this direction and helping consumers in addressing their issues.
Explain the Right to consumer education. (2)
(i) Right to consumer education:
A consumer has full right to acquire knowledge and to be well aware about various rights and reliefs provided by the legislation to protect interest of a consumer. Nowadays, many consumer organisations are taking active participation in educating and spreading awareness in this regard. Government also has taken several measures to educate consumers like Ministry of Civil supplier, publishes a quarterly magazine under the title “UPBHOKTA JAGRAN”, Doordarshan channel telecast program, namely-“SANRAKSHAN UPBHOKTA KA”, every year on March 15 “CONSUMER DAY” is celebrated etc.
What do you mean by branding? (2)
Branding refers to that process through which a distinct identification is given to a product either by giving a name, sign, symbol, term, design or a combination of them to identify the product and differentiate from that with the competitors.
Why is gathering and analysing market information necessary? (2)
One of the most important functions of a marketer is to collect and gather market information in order to identify the needs and wants of the customers. The marketer analyses the market by studying the strengths, weaknesses, opportunities and threats (SWOT) of the enterprise. Such an analysis helps the marketer to take decisions regarding diversification, improvement in product, expanding market etc.
‘Stock exchange not only contributes to the economic growth, but also performs many other functions’. Explain any two such functions. (2)
(i) Provides liquidity and marketability of existing securities- Stock exchange provides a ready and continuous market where securities are bought and sold. It gives investors the chance to disinvest or reinvest. Thus, regular dealing provides both liquidity and marketability to existing securities.
(ii) Pricing of securities- The stock exchange helps in determining the prices of various securities that reflect their real worth. It enables correct pricing of securities through the interplay of demand and supply.
Give the meaning of the money market instrument- Certificate of deposit. (2)
(i) Certificate of deposit- These are short-term, unsecured, negotiable instruments in bearer form. They are issued by commercial banks or development financial institution to individuals, corporations and companies. These are issued generally in time of tight liquidity when the deposit growth of banks is slow but the demand for credit is high, to mobilise large amounts of money for short periods.
Describe any two principles of Scientific Management. (2)
Scientific management means knowing exactly what you want mean to do and seeing that they do it in the best and cheapest way. Following are two Taylor’s principles of scientific management:
(i) Science, not Rule of Thumb: Taylor regarded that there was only one best method to maximise efficiency and this method which could be developed through study and analysis should substitute the ‘Rule of Thumb’ across the organisation.’
(ii) Harmony, not Discord: Taylor advocated in favour of establishing complete harmony between the management and the workers and said that both should realize their importance for each other. In order to achieve this objective, Taylor suggested for complete mental revolution on the part of both management as well as workers.
Section – C
Short Answer Type Questions-II (4 × 3 = 12)
Write a short note on : (3)
(i) Treasury Bills
(ii) Commercial Paper.
State the protective functions of Securities and Exchange Board of India.
(i) Treasury Bills:
- Issued by the RBI, these are the money market instruments acting on behalf of the central government to meet the short-term requirement of the funds.
- These are also called zero-couponbonds and the maturity of the bills is less than one year or less.
- These bills are issued when there is a shortage of funds, or when the RBI wants to control the liquidity of cash in the market.
- These bills are issued at a discount than the face value and are redeemed at par. The difference is the interest received by the holder, which is called ‘discount’.
- Treasury bills are available for a minimum amount of 25,000 and in multiples thereof.
(ii) Commercial Paper:
- It is a promissory note and a short-term, uninsured debt instrument negotiable and transferable by endorsement and delivery with a fixed maturity period.
- These are issued by large companies and corporations in need of quick short-term loans. The funds are required for providing short-term funds for seasonal and working capital needs.
- Commercial papers have a maturity term of between 15 days to 1 year. They are also issued at a discount and redeemed at par.
Difference between advertising and publicity. (3)
Write down the characteristics of a good brand name.
|Basis of Difference||Advertising||Publicity|
|1. Meaning||It is a paid form of promotion done with the objective of selling the product.||Publicity is a free activity done for circulating information or news.|
|2. Sub-part of||Promotion mix||Public relations|
|3. Nature||Impersonal and general||Both personal and impersonal|
|4. Control||Company||Third party|
|5. Target Audience||Prospective buyers or customers||Public in general|
|6. Initiative||Initiated by the company||Initiated by the media|
|7. Cost Involved||Involves advertising expenses||Involves no or very less expenditure on arguments|
|8. Impact||Increase in sales value||Brings out negative or positive aspects of a product or band.|
|9. Benefit||Builds brand image||Creates goodwill and develops trust|
Explain how principles of management : (3)
(i) help in optimum utilisation of resources and effective administration, and (ii) help the managers in meeting changing environment requirements.
Explain the tenchique of scientific management which is the strongest motivator for a worker to reach standard performance.
(i) Principles of management help in optimum utilisation of resources by equipping managers to foresee the cause and effect relationship of their decisions and actions, as such the wastage associated with a trial and error approach can be overcome. Principles of management help in effective administration by limiting the boundaries of management discretion so that their decisions may be free from personal prejudice and bias.
(ii) Principles of management help the managers in meeting changing environment requirements because they can be modified according to the changes taking place in the environment, e.g. the principle of division of work has now been extended to the entire business. Therefore, companies are focusing on their competency and outsourcing non-core business.
Kaul Consultants have launched www.naukripao.com exclusively for senior management professionals. The portal lists out senior level jobs and ensures that. the job is genuine through rigorous screening process.
(a) State the source of recruitment highlighted in the case above.
(b) State four benefits of the above identified source of recruitment. (3)
What is meant by recruitment? How is it different from selection?
The source of recruitment highlighted in the case above is ‘Web Publishing’. Today, internet has become an extremely common and popular source of recruitment. There are several websites which have been specifically designed and dedicated for providing information about both job seekers as well as job vacancies. In fact, websites like www.naukri.com, www.monster.com, www. linkedin.com, www.jobstreet.com, etc., are very popular among the prospective employees and the business organizations searching for the right candidates. Four benefits of the above identified source of recruitment are as follows:
- It saves the time of the recruiter as he has to access only a web page and he can find the suitable candidate available for the job and can also post a job within a very short span of time.
- It provides a very wide choice for the recruiter as applicants from all over the globe can be called using the web page.
- This method is a cost effective method as the recruiter has to access only a web page for calling the applicants for the recruitment process which saves cost of the company to call applicants for the recruitment process.
- This method is very simple to be used. Complex processes for arranging the recruitment process are not followed in this method.
Long Answer Type Questions (3 × 4 = 12)
Explain all the three levels of management. (4)
What is meant by co-ordination? State its features.
Management is a universal term used in context of several functions performed by people in an organisation who are joined together in a hierarchy of relationships. Every person in the hierarchy is responsible for successful completion of a particular work. Every person is assigned a certain amount of authority or the right to take a decision in order to be able to fulfill that responsibility. This authority-responsibility relationship binds individuals as superiors and subordinates and different levels emerge due to it in an organisation: Usually, there are three levels in the hierarchy of an organisation:
(i) Top Management : This consists of the senior-most executives of the organisation. They are generally referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president, etc. Managers from different functional levels, heading finance, marketing etc. constitute the team of top management. For example, chief finance officer, vice president (marketing), etc. Their basic task is to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation. Welfare and survival of the organisation is the responsibility of these top level managers. Their task is to analyze the business environment and its implications for the sake of survival of the firm. Formulation of overall organisational goals and strategies for their achievement is also included in their task. They are responsible for all the activities of the organisation and for its impact on the society. The functions of the top manager are complex and stressful, demanding extended working hours and commitment to the enterprise.
(ii) Middle Management : This acts as a link between top and lower level management. They are subordinate to the top level managers and superior to the first line managers. They are generally known as division heads, for example, production manager, etc. Implementing and controlling plans and strategies developed by top management is the responsibility of middle management. Along with this, they are also responsible for various activities of first line managers. Their primary. task is to carry out the plans formulated by the top managers. For · this they should: (a) interpret the policies framed by top management, (b) ensure that their department has the required personnel, (c) assign required duties and responsibilities to them, (d) motivate them to achieve the desired objectives, and (e) coordinate with other departments for the smooth functioning of the business. Along with this, they are also responsible for various activities of first line managers.
(iii) Supervisory or Operational Management : The lower level in the hierarchy of the organisation includes foremen and supervisors. Supervisors directly look after the efforts of the workforce. Their authority and responsibility is limited as per the plans drawn by the top management. Supervisory management plays a very crucial role in the enterprise as these managers interact with the actual workforce and pass on the instructions of the middle Quality of output is maintained, wastage of materials is minimised and safety standards are maintained through the efforts of these managers. Hard work, discipline and loyalty of the workers influence the · quality of workmanship and the quantity of output.
Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment. (4)
Explain Fayol’s principles of ‘Scalar chain’ and ‘Discipline’ with the help of examples.
Both Fayol and Taylor have contributed significantly to the discipline of management and their principles have become the basis of further practice by present-day managers. These principles help manager to take the effective decision in the competitive edge. The present age is the age of competition. Business policies should be so effective to cope with the challenges faced everyday by the organizations.
The principles of Fayol and Taylor give the managers a way to tackle the problems faced by the business, organizations every day. In simple words, we can say that the principles and theories given by Fayol and Taylor give an insight to the manager to deeply understand the overall business situations and use of effective techniques in time of needs.
Explain some of the important communication networks. (4)
Explain the concept of leadership and its various styles.
Following are some of the most popular communication networks:
- Single chain: Single chain network exists between a supervisor and his followers or subordinates. As many levels exist in an organisational structure, communication flows from every superior to his subordinate through single chain.
- Wheel: In wheel network, all the followers or subordinates under one superior communicate through him only as the superior acts as a hub of the wheel. The subordinates are not allowed to talk among themselves.
- Circular: In circular network, the communication moves in a circle. Each individual can communicate with his adjoining two individuals. In this network, communication flow is slow.
- Free flow: In this network, every individual is allowed to communicate with other individuals freely. This network facilitates rapid flow of communication.
- Inverted V: In this type of network, a subordinate is allowed to communicate with his immediate superior as well as his superior’s superior. However, in the latter case, only prescribed communication takes place.