Students must start practicing the questions from RBSE 12th Business Studies Model Papers Set 8 with Answers in English Medium provided here.
RBSE Class 12 Business Studies Model Paper Set 8 with Answers in English
Time : 2 Hours 45 Minutes
Max. 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) When a single consumer fails to get his rights protected, he seeks the help of …………… (1)
(a) Trade unions
(b) Labour unions
(c) Consumer Associations
(d) All of the above
(c) Consumer Associations
(ii) Which of the following is an association of trade and is engaged in the protection of consumer’s interests? (1)
(iii) …………. refers to producing goods of predetermined specifications, which helps in achieving uniformity and consistency in the output. (1)
(iv) Which of the following does not come under controllable factors ? (1)
(a) Price decisions
(b) Packaging decisions
(c) Physical distribution decisions
(v) Haldirams is selling its products directly to the customers’. State which channel of distribution is used by the company. (1)
(a) Direct channel of distribution
(b) One level channel of distribution
(c) Two-level channel of distribution
(d) Three level channel of distribution
(a) Direct channel of distribution
(vi) The head office of SEBI is in- (1)
(vii) In primary markets, first time issued shares to be publicly traded in stock markets is considered as- (1)
(a) traded offering
(b) public markets
(c) issuance offering
(d) initial public offering
(d) initial public offering
(viii) A company plans to earn a 30% return on its investment in a new project. Identify the type of plan being described in the above lines. (1)
(ix) An ideal plan would be one which is most profitable, most feasible and has the least- (1)
(a) positive consequencs.
(b) negative consequences
(d) none of these
(b) negative consequences
(x) Workforce analysis is a part of- (1)
(a) Estimation of manpower requirement
(b) Selection process
(c) Recruitment process
(d) None of these
(a) Estimation of manpower requirement
(xi) Which of the following is conducted for verifying information provided by a candidate ? (1)
(a) Preliminary screening
(b) Selection tests
(c) Selection decision
(d) Reference and background check
(d) Reference and background check
(xii) Which of the following major activity is performed by the Bureau of Indian Standards ? (1)
(a) Formulation of quality standards for goods
(b) Certification of goods through the BIS certification scheme
(c) Handling complaints about quality of goods carrying ISI mark
(d) All of the above
(d) All of the above
Fill in the Blanks (1 × 6 = 6)
(i) ………………. techniques of scientific management is a violation of unity of command. (1)
(ii) According to ……………., no seller can try to influence consumer’s choices through an unfair means. (1)
(iii) …………….. of management is associated with grouping of activities to be carried out in various departments and creating a management hierarchy. (1)
(iv) If the sponsor of the information is unidentifiable, then it is ……………… form of promotional tool. (1)
(v) ……………… training technique duplicates the actual work environment. (1)
(vi) Planning requires …………………. thinking rather than guess work or wishful thinking. (1)
(i) Functional foremanship
(ii) Right to choose
(vi) logical and systematic
Very Short Answer Type Questions (1 × 12 = 12)
(i) Explain how business associations act as a means of consumer protection. (1)
Various association of trade, commerce and business, like Federation of Indian Chambers of Commerce of India (FICCI) and Confederation of Indian Industries (CII), have laid their own code of conduct to be followed by all the members while dealing with their customers.
(ii) Give any two examples of services that can be marketed. (1)
Services like Insurance, health care, business process outsourcing (BPO), online trading etc. can be marketed.
(iii) What refers to the horizontal movement of employees along the organizational structure? (1)
(iv) Which process refers to the employee occupying the position or post for which the person has been selected? (1)
(v) What do physiological needs constitute as per Maslow’s theory of motivation? (1)
These needs are the most basic in the hierarchy and correspond to primary needs. Hunger, thirst, shelter, sleep and sex are some examples of these needs.
(vi) Give the meaning of ‘Motivation’ as an element of directing. (1)
Motivation is the process of stimulating people to act voluntarily to accomplish desired goals.
(vii) At which level of management, directing takes place ? (1)
Directing takes place at all levels of management, wherever superiorsubordinate relationship exists.
(viii) Define communication. (1)
Communication is the process of exchange of ideas and views among two or more persons to create common understanding. According to Newman, Summer and Warren, “Communication is the exchange of facts, ideas, opinions or emotions between two or more persons.”
(ix) What refers to the process of instructing, guiding, counselling, motivating and leading the people in the organisation to achieve their objectives? (1)
(x) Give the meaning of policy as type of plan. (1)
A policy is a general statement which guides the action and decision of the subordinates in various departments. It provides the basis for interpreting strategy, which is usually stated in general terms.
(xi) ‘Planning is done for achieving the organisational goals’. Do you agree ? Give one reason in support of your answer. (1)
Yes, planning ensures that goals or objectives are clearly stated so that they act as a guide for deciding what action should be taken and in which direction.
(xii) All business firms would like to increase their sales and earn profits to be successful. All managers dream of these. To turn their dreams into reality, managers need to work hard in thinking about the future, in making business predictions and achieving targets
The above lines describe one of the functions of management. Identify and define this function. (1)
Planning : Planning is defined as the process of setting objectives for a given time period, formulating various courses of action to achieve them and then selecting the best possible alternative from among the various courses of action available.
Section – B
Short Answer Type Questions-I (2 × 13 = 26)
What do you mean by planning and organizing ? (2)
Planning is the function of determining in advance what is to be done in the future and who is to do it. Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.
Explain the concept of method study. (2)
Method Study: To identify one best. way of doing the job is the objective of method study. There are several parameters to decide the best way, among the various methods of doing the job. To determine the best way there are several parameters. Every business activity, right from purchase of raw materials till the delivery of final product to the customers, forms a part of method study. Taylor introduced the concept of assembly line, using method study. Many automobile companies including the Ford Motor Company have been using this technique very successfully.
Minimising the cost of production, ensuring quality and maximizing the satisfaction of the customers is the ultimate objective of this entire exercise. Various techniques such as process charts and operations research etc. are used to achieve this.
What is a plan based on research and analysis and is concerned with physical and technical tasks ? (Method) (2)
Methods provide the stipulated ways or manner in which a work has to be performed while considering the objective. Method varies from task to task and is concerned with a task comprising one step of a procedure and specifies how this step is to be performed. Selection of proper method facilitates saving of time, money and effort and hence increases’ efficiency. Different methods may be adopted for imparting training to employees at various levels from top level management to supervisory level management.
Method is a standing plan.
State any four benefits of training to employees. (2)
Benefits of training to employees are:
- It helps in career growth due to improved skills and knowledge.
- It helps them to earn more due to improved performance.
- It reduces accidents as the employees are more efficient to handle machines.
- It increases the morale of the employees as the employees are more satisfied.
Differentiate between ‘Democratic’ and ‘Laissez-faire’ style of leadership. (2)
‘Democratic’ style of leadership:
In ‘Democratic’ style of leadership, the leader develops action plans and makes decisions in consultation with his subordinates and encourages them to participate in decision making. ‘Laissez-faire’ style of leadership : In ‘Laissez-faire’ style of leadership, the leader does not believe in the use of power unless it is absolutely essential and gives a high degree of independence to the followers to formulate their own objectives and ways to achieve them.
What are the social objectives of the business? (2)
Every business or non-business organisation has a social obligation to fulfill because it is also a part of the society. 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.
What is Public Interest Litigation (PIL)? (2)
It is a right to file suit, which is given to a member of the public by the courts through judicial activism. It can be filed in high court or directly supreme court. It is not necessary that the petitioner has suffered some injury of his own or has had personal grievances to litigate. Public interest litigation is a right given to a socially conscious member or a public spirited NGO to espouse a public cause by seeking judicial course for redressal of public injury. Such injury may arise from breach of public duty or due to violation of some provision of the Constitution. It is a device by which public participation in Judicial review of administrative action is assured. It is the effort of making judicial process little more democratic.
When can a complaint be filed under the Consumer Protection Act, 2019? (2)
A complaint can be filed under the Consumer Protection Act, 2019 within two years from the date on which the cause of action has arisen. However, a complaint may be entertained even after the expiry of said two years, if the complainant satisfied the consumer courts that he has sufficient cause for not filing the complaint within such period.
How does marketing helps in developing product image of a firm in the market? (2)
By selling a product or service at reasonable price and of standard quality, a firm tries to earn itself a name and built the position in the market. Marketing basically aims at building the reputation of firm through various image building activities like popularizing a product supported by advertising, reasonable price, high quality, convenient outlets, after sales services etc. So, we can say that marketing helps in developing product image of a firm in the market by helping in promoting their products, help them at the time of launch of a new product, control their prices, give choices to the customers to choose between various products, healthy competition etc.
What are the various objectives of marketing management? (2)
The various objectives of marketing management are-
- To ensure customer satisfaction.
- To serve the society by providing standardized goods with proper quality at affordable and reasonable prices.
- To attain profitability in marketing of goods and services for the company.
‘Financial markets are classified on the basis of the maturity of financial instruments traded in them.’ Name the market in which the instruments with more than one year maturity are traded. Also state any four features of this market. (2)
Four features of Capital Market:
- It facilitates arrangement of long term and medium term funds.
- In this market, funds are raised through both – debt and equity, i.e. equity shares, preference shares, bonds, debentures etc.
- It includes Primary and Secondary market.
- The participants in this market are financial institutions, banks, corporate entities, foreign investors and ordinary retail investors.
State the protective functions of Securities and Exchange Board of India. (2)
Protective functions of SEBI:
- It prohibits fraudulent and unfair trade practices. like misleading statements, manipulations, price rigging etc.
- It controls insider trading and imposes penalties for such practices.
- It undertakes steps for investor protection.
- It promotes fair practices and code of conduct in securities market.
Describe briefly two techniques of Scientific Management. (2)
(i) Functional Foremanship:
Functional foremanship is complimentary to the principle of division of work and specialisation to the shop floor. Under it, each worker has to take orders from these eight foremen in the respective process or function of production.
(ii) Standardisation and Simplification of Work: Standardisation is the process of setting standards for each and every business activity; it includes standardisation of process, raw material, time, product, machinery, methods and working conditions. Being the benchmarks, these standards should be followed everywhere during the entire process of production.
Section – C
Short Answer Type Questions-II (4 × 3 = 12)
What are the objectives of SEBI and NSE ? (3)
Explain the functions of financial market.
Following are the objectives of SEBI:
- Regulates the functions of the stock exchange- SEBI regulates the functions of the stock exchange and securities market in order to ensure orderly functioning.
- Protects the rights of the investors- SEBI protects the rights and interests of the investors as well as guide and educate them.
- Prevention- SEBI prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.
- Code of conduct- SEBI provides a code of conduct for the trade practices of various intermediaries such as brokers and merchant bankers with a view to make them competitive and professional.
NSE was set up with the following objectives :
- Establishing a nationwide trading facility for all types of securities.
- Ensuring equal access to investors all over the country through an appropriate communication network.
- Providing a fair, efficient and transparent securities market using electronic trading system.
- Enabling shorter settlement cycles and book entry settlements.
- Meeting international benchmarks and standards.
“Marketing helps in satisfying wants of people”. Do you agree with the statement? Give reasons. (3)
Explain the various channels of distribution.
Yes, marketing helps in satisfying wants of the people. Marketing is a consumer-oriented activity; the primary purpose of marketing is to see that consumers are satisfied. Some of the activities performed by marketing include-
- Assessing needs and wants of the people.
- Planning in developing products and services that can satisfy consumer needs and wants.
- Supplying the required products and services.
- Providing various after-sales benefits for the customers.
- Designing products that are attractive and improve quality.
- Developing standardized products
- Proper fixation of prices.
- Properly promoting product that customer can choose according to their budget, nature of product etc.
- Physically distributing products with the help of various channels of distribution.
- Proper storage and warehousing facilities.
- Proper transportation facilities by avoiding spoilage, leakage, loss etc.
Explain how principles of management : (3)
(i) help the managers in taking scientific decisions, and (ii) provide the managers with useful insights into real world situations.
Explain the technique of ‘simplification and standardisation of work’ given by Taylor.
(i) Scientific decisions- The knowledge of management principles enables managers to learn the cause . and effect relationship between variables operating in the organisation. They are able to develop a scientific and objective approach towards problem solving and decision-making.
(ii) Provide the managers with useful insight into reality Management principles act as guidelines for the managers. These principles improve knowledge, ability and understanding of managers under various managerial situations. The effects of these principles help the managers to learn from their mistakes.
Explain ‘Vestibule Training’ and ‘Apprenticeship Programme’ as methods of training. (3)
What is meant by training ? State any three benefits of training to the organisation.
Vestibule Training :
- Vestibule Training is a method of training which is conducted on the equipment and machines they will be using, away from the actual place of work.
- It is generally used where the employees are required to handle sophisticated machinery.
Apprenticeship Programme :
- Apprenticeship Training/Programme is a method of training in which the trainee is kept under guidance of a master worker for a prescribed period of time to acquire a higher level of skill.
- People who want to enter skilled trades, e.g. plumbers and electricians are often required to undergo such programme.
Section – D
Long Answer Type Questions (3 × 4 = 12)
Write the main functions of management. (4)
‘Management is an intangible force.’ Do you agree with the given statement? If yes, why?
Functions of Management: The functions of management can generally be classified into five functions and these are as follows:
(i) Planning : Planning is the function of determining in advance what is to be done in the future and who is to do it.
(ii) Organising : Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.
(iii) 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.
(iv)Directing : Directing includes leading, influencing and motivating the workforce to perform the tasks assigned to them.
(v) Controlling : Controlling refers to the management function of monitoring the performance of the business towards the attainment of its goals.
Explain the significance of principles of management using any two heads. (4)
Explain the following principles of Fayol with the help of one example of each. (i) Division of work (ii) Unity of direction.
(i) 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. Principles of management help the managers to foresee the cause and effect relationships of their decisions and actions, so that the wastages associated with a trial-anderror approach may be prevented. Impersonalisation of managerial conduct is inevitable for effective administration, in order to ensure that managerial power is used with due discretion. In order to ensure that managerial decisions may be free from personal prejudices and biases, the principles of management limit the boundary of managerial discretion. For example, while deciding the annual budgets for various departments, managerial discretion is bounded by the principle of contribution to organisational objectives, in place of personal preferences.
(ii) Scientific decisions: Decisions must be timely, realistic and subject to measurement and evaluation, and in addition to this, they must also be based on facts, thoughtful and justifiable in terms of the intended purposes. The principles of management emphasise logic rather than blind faith and they help in thoughtful decision-making. Managerial decisions taken on the basis of principles of management are based on the objective assessment of the situation and they are free from bias and prejudice.
(i) Explain the elements of communication.
(ii) Explain some of the important assumptions of Maslow’s Need Hierarchy Theory. (4)
Explain how directing helps in effective and efficient functioning of the organisation.
(i) The following are the important elements of communication process:
- Sender: Sender refers to the individual who conveys his thoughts or ideas to the receiver. The sender represents the source of communication.
- Message: It refers to the content of feelings, ideas, suggestions, order etc., intended to be communicated.
- Encoding: Encoding is the process of converting the message into communication symbols like words, pictures, gestures, etc.
- Media: It implies the path through which the encoded message is transmitted to the receiver. The channel may be face to face, in written form, in the form of a phone call, internet etc.
- Decoding: It is the process which includes converting the encoded symbols of the sender.
- Receiver: Receiver is the individual who receives the communication of the sender.
- Feedback: It includes all those actions of the receiver which reflect that he has received and understood the message of the sender.
- Noise: Noise refers to any obstruction or hindrance to communication. This hindrance may be caused to the sender, the message or the receiver.
(ii) Maslow’s theory is based on the following assumptions:
- Behaviour of individuals is based on their needs. Satisfaction of such needs influences their behaviour.
- Needs of individuals are in hierarchical order, starting from basic needs to other higher level needs.
- A satisfied need can no longer motivate an individual; only the next higher level need can motivate him.
- An individual moves to the next higher level of the hierarchy only when his lower need is satisfied.