Students must start practicing the questions from RBSE 12th Business Studies Model Papers Set 9 with Answers in English Medium provided here.
RBSE Class 12 Business Studies Model Paper Set 9 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
Question 1.
Objective Type Questions (1 × 12 = 12)
(i) Which of the following is the apex body for redressal of consumer grievances in India ? (1)
(a) District forum
(b) State Commission
(c) National Commission
(d) Supreme Court
Answer:
(d) Supreme Court
(ii) What is PIL? (1)
(a) Public Interest Litigation.
(b) Protect Interest Litigation
(c) Protect Individual Litigation
(d) Public Induce Litigation
Answer:
(a) Public Interest Litigation.
(iii) Sharvan is very particular to get his hair cut from ABC saloon of South Delhi. Which type of service is it? (1)
(a) Speciality service
(b) General service
(c) Common service
(d) All of these
Answer:
(a) Speciality service
(iv) Pepsi offers 5 to the customer on return of empty bottle. Identify the technique used by Pepsi. (1)
(a) Discount
(b) Refund
(c) Quantity gift
(d) All of these
Answer:
(b) Refund
(v) Which type of products can be used again and again ? (1)
(a) Durable products
(b) Non-durable products
(c) Perishable products
(d) Both (a) and (b)
Answer:
(a) Durable products
(vi) Primary and secondary markets : (1)
(a) compete with each other
(b) complement each other
(c) function independently
(d) control each other
Answer:
(b) complement each other
(vii) If comparison is to be made between the securities traded in money and capital markets securities traded in capital market are (1)
(a) less liquid and for more duration
(b) highly liquid and for shorter duration
(c) less liquid and for shorter duration
(d) highly liquid and for higher duration
Answer:
(a) less liquid and for more duration
(viii) Which budget is prepared to determine net cash position? (1)
(a) Production budget
(b) Cash budget
(c) Sales budget
(d) Purchase budget
Answer:
(b) Cash budget
(ix) What are derivative plans and why they are formulated ? (1)
(a) Derivative plans are the supporting plans, which are formulated for executing the primary plan.
(b) Derivative plans are the developing plans, which are formulated for executing the developed plan.
(c) Derivative plans are the controllable plans, which are formulated for executing the controlled plan.
(d) None of the above
Answer:
(a) Derivative plans are the supporting plans, which are formulated for executing the primary plan.
(x) Which of the following is not a merit or an advantage of using external sources of recruitment? (1)
(a) Qualified personnel
(b) Economical source of recruitment
(c) Fresh talent
(d) Wider choice
Answer:
(b) Economical source of recruitment
(xi) Who among the following requires medical fitness test for selection ? (1)
(a) Call centres
(b) Accountancy firms
(c) Armed forces
(d) Law firms
Answer:
(c) Armed forces
(xii) In India, when is the National Consumer Day observed ? (1)
(a) 26th December
(b) 24th December
(c) 24th January
(d) 15th March
Answer:
(b) 24th December
Question 2.
Fill in the Blanks (1 × 6 = 6)
(i) Henri Fayol and ………. belong to classical schools of management. (1)
(ii) According to consumer responsibility, a consumer should look for the purchasing electric appliances. (1)
(iii) …………………….. process provides the required amount, quality, timing and sequence of efforts, which ensures that planned objectives are achieved with minimum conflict. (1)
(iv) When a manufacturer does not sell his products to wholesaler but directly to the retailer, such a distribution medium is known as ………………… (1)
(v) Under ……………….. method of recruitment, an organisation maintains a database of unsolicited applicants in their offices. (1)
(vi) Departments and individuals in an organisation are able to work in …………………., which is an important function of planning. (1)
Answer:
(i) F. W. Taylor
(ii) ISI
(iii) Coordination
(iv) One level channel
(v) Casual callers
(vi) Coordination
Question 3.
Very Short Answer Type Questions (1 × 12 = 12)
(i) Explain how self regulation by business acts as a means of consumer protection? (1)
Answer:
Nowadays, business firms understand that for the long term interest to serve the customers, it is best to follow standard and ethical practices. For this purpose, many firms have set up their customer service and grievance redressal cells to solve the problems, issues and grievances of their customers.
(ii) Why do we call marketing a social process? (1)
Answer:
Marketing is a social process because buyers and sellers interact with each other in order to buy/sell goods and services. As a result of this interaction, buyer’s purchases and seller sell their goods.
(iii) Which process leads to shifting an employee to a higher position and entrusting greater responsibilities to him? (1)
Answer:
Promotion.
(iv) Which training technique duplicates the actual work environment? (1)
Answer:
Vestibule training.
(v) What is the highest level need as per the Maslow’s theory of motivation? (1)
Answer:
Self Esteem needs.
(vi) Explain in one sentence how directing initiates action in management. (1)
Answer:
Directing initiates action by ordering employees to attain the desired goals of an organisation.
(vii) Define directing as a function of management. (1)
Answer:
Directing is the process of instructing, guiding and inspiring people in the organisation to achieve its objectives.
(viii) Name the term used in management which stimulates people to take up work voluntarily. (1)
Answer:
‘Motivation’ stimulates people’ to take up work voluntarily.
(ix) Explain Leadership briefly. (1)
Answer:
It leads to achievement of organizational objectives, shows the ability of an individual to influence others, leads to the desired change in the business organisation.
(x) ‘Dreams can be turned into reality only when managers think in advance what to do and how to do it’. Name the function of management indicated by the statement. (1)
Answer:
Planning seeks to bridge the gap between where we are and where we want to go. It involves setting objectives and targets and formulating an action plan to achieve them.
(xi) State why planning is called a primary function of management. (1)
Answer:
Planning is called the primary function of management because it serves as a basis for all the other functions of management and precedes them.
(xii) Give the meaning of ‘Method’ as a type of plan. (1)
Answer:
Method is the prescribed way or manner in which a task has to be performed taking into consideration the objective of the organisation.
Short Answer Type Questions – I (2 × 13 = 26)
Question 4.
What do you mean by coordination? How does coordination integrate the group efforts? (2)
Answer:
Coordination is the process by which a manager synchronises the activities of various departments. Coordination is the force that binds all the other functions of management. Unrelated or diverse interests are unified into purposeful work activity with the help of coordination.
Question 5.
Explain how management principles are universally applicable. (2)
Answer:
The principles of management apply to all types of organisations, business as well as non-business, small as well as large, public sector as well as private sector, manufacturing as well as services sector. It should be noted here, that the extent of their applicability depends upon the nature of the organisation, business activity, scale of operations, etc.
This principle applies in varying quantities, as the case may be, to a limited company having various departments such as production, distribution, finance, marketing, research and development, etc., in government office where there is a diary/dispatch clerk whose task is to receive and send mails or documents, a data entry operator whose job is to input data on the computer, a peon, an officer and so on. This principle is also applicable to a limited company where there are separate departments, like Production, Finance, Marketing and Research and Development, etc.
Question 6.
Explain any two points of importance of planning function of management. (2)
Answer:
(i) Planning provides direction:
Planning provides direction for action by telling in advance how work is to be done in the future. In order to ensure that goals and objectives act as a guide for deciding what action should be taken and in which direction, planning ensures that the goals or objectives are clearly stated.
(ii) Planning reduces the risks of uncertainty:
Planning enables a manager to look ahead and anticipate changes. Planning shows the way to deal with changes and uncertain events by deciding in advance about the tasks to be performed in the future.
Question 7.
Write a short note on Recruitment. (2)
Answer:
Recruitment is defined as ‘the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.’ Hence, recruitment refers to the process of finding the possible candidates for a specific job or å function. The recruitment process largely includes publicity and advertisement, which can be done through several means, like newspapers, using newspapers dedicated to job advertisement, through professional publication, using advertisements placed in windows, through job centers; through campus interviews, and others.
Question 8.
Differentiate between ‘Formal communication’ and ‘Informal communication’ on the basis of ‘Meaning’. (2)
Answer:
Formal communication is communication which flows through official channels designed in the organisation chart.
Informal communication is communication that takes place without following the formal lines of communication.
Question 9.
How is management a goal oriented process? (2)
Answer:
Management is a goal-oriented process : A set of basic goals is the fundamental reason for the existence of an organisation. These goals must be simple and clearly stated. Different organisations have different goals. For example, the goal of a retail store may be to increase .sales, whereas the goal of The Spastic Society of India (also called ADAPT- Able Disable All People Together) is to impart education to children with special needs. Management unites the efforts of various individuals in the organisation towards achieving these common goals.
Question 10.
Who can file a complaint in a consumer court? (2)
Answer:
For the redressal of the grievances of consumers, consumer courts and consumer forums have been established under the Consumer Protection Act. The following can file a complaint in a consumer court- (i) A consumer, (ii) A registered consumer association or organization (Irrespective of the fact that the consumer concerned is a member of the association or not), (iii) The Central or any State Government, (iv) A consumer or a group of consumers on behalf of a number of consumers having same interest, (v) In case the consumer is minor, his parents or legal guardians, (vi) A legal heir or a representative of the deceased consumer.
Question 11.
Who is a consumer as per CPA? (2)
Answer:
(a) A consumer is a person who buys any good or avails any service, for a consideration which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. It includes any other user of such goods when such use is made with the approval of the buyer but it does not include a person who obtains goods for the purpose of resale or commercial purpose.
(b) Any person who hires or avails of any service for the consideration which has been paid or promised, or partly paid and partly promised, or under any system of deferred payment. It includes any beneficiary of services when services are availed of with the approval of person concerned, but does not include a person who avails of such service for any commercial purpose.
Question 12.
What do you mean by product mix? State some of the features of product. (2)
Answer:
Product mix refers to all the decisions relating to the product. These decisions are mainly related to the branding, packaging, labelling, quality, size, colour, design, after sales service and weight of the product. Features of product are given below-
- A product is tangible in nature. It has certain physical attribute, like shape, size etc. It can be seen, touched and felt.
- A product has certain attributes which help the customers to distinguish it from the other products.
- Packaging, brand name, warranty etc. are always associated with the product.
- A product has some value that can be measured in terms of money.
- The very essence of product is to satisfy some kind of needs and wants of human beings.
Question 13.
“Nowadays, customer support services are considered as an important part for the satisfaction of a customer “. In the light of this statement, explain the purpose of customer support services in providing satisfaction to the customers. (2)
Answer:
Customer is king of market, so it is a very important function of a marketer to offer every possible help to the customer. Customer support services are group of services which aims at providing maximum satisfaction to the customers and helps in bringing repeated sales and developing brand loyalty for the product. For example after sales services, technical Services, maintenance services, handling customer complaints, credit facilities, product related information etc.
Question 14.
Explain Commercial Paper. (2)
Answer:
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.
Question 15.
Write a short note on the Certificate of Deposit. (2)
Answer:
Certificate of Deposit-
- The money market instruments issued only by the commercial banks and financial institutions under the guidelines of RBI.
- These are the unsecured, negotiable, short-term instruments in bearer form, issued by commercial banks and development financial institutions.
- Their maturity term is between 7 days to a year when issued by banks and if it is issued by the other financial institutes, the maturity period is one to three years.
Question 16.
Write a short note on method study and motion study. (2)
Answer:
(i) Method Study: To identify one best way of doing the job is the objective of method study. 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.
(ii) Motion Study: Motion study implies the study of various movements such as lifting, putting objects, sitting and changing positions etc., which are conducted while doing a particular job. In this, unnecessary movements eliminated to save time while doing a particular job.
Section – C
Short Answer Type Questions-II (4 × 3 = 12)
Question 17.
State any there functions of stock exchange. (3)
Or
Explain any there methods of floating new issues in the primary market.
Answer:
Three functions performed by the Stock Exchange are:
(i) Providing liquidity and marketability to existing securities, as the stock exchange creates a continuous market where the securities are bought and sold. It gives investors the chance to disinvest and reinvest. ‘It creates a continuous market where the securities are bought and sold. It gives investors the chance to disinvest and reinvest.’
(ii) Contributes to economic growth, as through process of disinvestment and reinvestment, savings get channelised into their most productive investment avenues. ‘Through this process of disinvestment and reinvestment, savings get channelised into their most productive investment avenues.’
(iii) Safety of transactions, as the membership of the stock exchange – is well regulated and its dealings are – well defined according to the existing legal framework. This ensures that the investing public gets a safe and fair deal on the market. ‘Membership of the stock exchange is well regulated and its dealings are well defined according to the existing legal framework.’
Question 18.
Explain the following functions of marketing : (3)
(i) Market planning
(ii) Product designing and development.
Or
Discuss in brief how do the below mentioned points influence price determination
(i) Objective (ii) Cost (iii) Competition (iv) Buying motives.
Answer:
(i) Market planning – After the marketer collects market information based on his market research, he has to develop appropriate marketing plan to achieve marketing objectives of the organization. Marketing plan involves taking decisions on what all activities have to be undertaken to achieve marketing objective. For example, a manufacturer of mobile phones in India having 10% of current market share, plans to increase his market share to 20% in the coming years. For this, they develop a complete marketing plan covering many important aspects like the plan for increasing the production, promotion of products etc. and also specify the various action programmes to achieve these objectives.
(ii) Product designing and development – Another important marketing activity or decision area relates to the designing and development of the product. The design of a product not only helps in making the product attractive, but it also helps in improving the performance of the product. A good and distinctive design also provides a competitive advantage over other products in the market. For example, when a customer plans to purchase a motorbike he not only compares its features like cost, mileage etc. with the other products, but also compares various design aspects like shape, size, style etc.
Question 19.
State any there features of principles of management. (3)
Or
Explain with the help of an example ‘differential piece wage system’ given by Taylor.
Answer:
Management principles are broad and general guidelines for decisionmaking and behaviour. Following features highlight the characteristics of management principles :
(i) Universal application- Management principles are applied in every situation where the objectives are attained through group efforts. All social, economic, political or religious organisations apply management principles for their successful operations. Every organisation should make the best possible use of its available resources by the application of management principles alongwith managerial functions such as planning, organising, staffing, directing and controlling.
(ii) Flexibility- The principles of management are not rìgit · prescriptions, which have to be followed absolutely. The are flexible and can be modified by the manager when the situation so demands. They give the manager enough discretion to do so.
(iii) General StatementsManagement principles are concerned with human behaviour which cannot be tested under laboratory conditions. Human behaviour cannot be predicted accurately. Therefore, management principles are not as exact as the principles of physical science.
Question 20.
Explain some main benefits that an organisation derives from the staffing process. (3)
Or
What is staffing ? Explain any three points of importance this function.
Answer:
An organisation obtains the following benefits from appropriate staffing :
- Staffing helps in discovering and obtaining competent personnel for various types of jobs.
- It enhances performance by putting : the right person on the right job.
- Staffing ensures the sustenance and growth of the enterprise through succession planning for managers.
- It helps to ensure optimum utilisation of human resources. By preventing over-manning, it prevents underutilisation of staff personnel and higher labour costs. In addition to this, it also prevents disruption of work by identifying in advance the shortage of working personnel.
- Staffing enhances job satisfaction and morale of employees through objective assessment and fair reward for their contribution.
Long Answer Type Questions (3 × 4 = 12)
Question 21.
Why is management considered to be a multi-dimensional concept? (4)
Or
What are the personal objectives of business?
Answer:
Management is a complex activity consisting of three main dimensions.
These are as follows:
(a) Management of work : Existence of all the organizations is for the performance of some task. In a factory an item is produced, in a garment store a customer’s need is satisfied and in a hospital a patient is treated. Management interprets this , work in terms of goals to be achieved and suggests the means to achieve them. This is done in terms of problems to be solved, decisions to be taken, plans to be formed, budgets to be prepared, responsibilities to be assigned and authority to be delegated.
(b) Management of people : The biggest assets of any organisation are its human resources or employees. Although, in the past few years, there has been rapid development in the field of technology, yet “getting work done through people” is still a major task and a challenge for a manager. Managing people has two dimensions- (i) It refers to dealing with employees as individuals with different needs and behaviour; (ii) It also implies dealing with individuals in the form of a group of people. The task of management is to make people aware and let them work towards achieving the organisation’s goals, by making their strengths more effective and their weaknesses absolutely irrelevant.
(c) Management of operations : Every organisation has some basic product or service to provide in order to survive and make profits. This essentially requires a production process which requires the flow of input material and the technology for transforming this input into the needed output for consumption. This is interlinked with the management of work as well as the management of people.
Question 22.
What are the principles of Scientific Management ? (4)
Or
Explain with the help of an example, ‘differential piece wage system’ given by Taylor.
Answer:
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 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.
(iii) Cooperation, not Individualism :
In place of individualism, there should be perfect cooperation between the workers and the management. It means that competition should be replaced by cooperation and both the management as well as the workers should realize that they are complimentary to each other.
(iv) Development of each and every person to the greatest efficiency and prosperity: Taylor suggested that the concern for efficiency could be built in right from the process of selection of the employees. After selecting a person on scientific basis, work should be assigned on the basis of his physical, mental and intellectual capabilities.
Question 23.
Explain any four points of importance of supervision. (4)
Or
Give the meaning of supervision as an element of directing and any four points that explain its role.
Answer:
- The supervisor maintains day-to-day contact and friendly relations with the subordinates. A good supervisor functions as a guide, friend and philosopher to the workers.
- The supervisor acts as a link between employees and management. On one hand, he conveys the ideas of the management to the workers, and on the other hand, he conveys the problems of the employees to the management. This role played by supervisor helps to avoid misunderstandings and conflicts between the management and the employees of the organisation.
- The supervisor plays an important role in maintaining unity among the employees placed under his control. He resolves internal differences and maintains harmony among his subordinates.
- The supervisor ensures appropriate performance of work according to the predetermined targets. He takes responsibility for the accomplishment of the task and motivates his subordinates effectively.
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