RBSE 12th Business Studiesn Model Paper Set 1 with Answers in English

Students must start practicing the questions from RBSE 12th Business Studies Model Paper Set 1 with Answers in English Medium provided here.

RBSE Class 12 Business Studies Model Paper Set 1 with Answers in English

Time : 2:45 Hours
Max. 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 x 12 = 12)

(i) To provide protection to the customers against the improper behaviour of the producers and sellers is called [1]
(a) Consumer Protection Act
(b) Consumer Protection
(c) Consumer Welfare
(d) Consumer Educatioh
Answer:
(b) Consumer Protection

(ii) A producer of herbal medicine claimed in an advertisement in a national newspaper that his product has large amount of vitamins, minerals and proteins. However, tests indicate that these claims are all false. Whose example is this? [1]
(a) Exploitation of consumers
(b) Welfare of consumers
(c) Information of consumers
(d) None of these
Answer:
(a) Exploitation of consumers

(iii) ………. is called a marketer.
(a) Service Provider
(b) Service receiver
(c) Satisfaction seeker
(d) Satisfaction Provider
Answer:
(d) Satisfaction Provider

(iv) Customer is the ……………. of the market.
(a) King
(b) Servant
(c) Soldier
(d) Thief
Answer:
(a) King

(v) …………… is the process of planning, organizing, directing and controlling the activities is called a marketer. relating to the exchange of goods and services.
(a) Marketing Management
(b) Financial management
(c) Marketing Mix
(d) Personnel Management
Answer:
(a) Marketing Management

(vi) Which one of the following is not a function of financial market?
(a)Mobihsation of savings
(b) Price determination of securities
(c) Floating of companies
(d) Lowering trAnswer:action costs
Answer:
(c) Floating of companies

(vii) Which of these is a function of financial market? [1]
(a) Mobilisation of savings and channeling them into the most productive uses
(b) Facilitating price discovery
(c) Reducing the cost of trAnswer:actions
(d) All of the above
Answer:
(d) All of the above

(viii) The function of management which involves setting the objectives and developing appropriate courses of action to achieve those objectives is
(a) Planning
(b) Staffing
(c) Directing
(d) Organising
Answer:
(a) Planning

(ix) A private limited company wants to increase its sales by [2]0% in the next quarter. Identify the type of plan being described in the above lines
(a) Objective
(b) Strategy
(c) programme
(d) Method
Answer:
(a) Objective

(x) Staffing refers to
(a) Making plAnswer: for the organisation
(c) TrAnswer:lating plAnswer: into action
(b) Putting right people on the right job
(d) All of these
Answer:
(b) Putting right people on the right job

(xi) Vestibule training is relevant for
(a) Top management
(c) Supervisory management
(b) Middle management
(d) Operatives
Answer:
(d) Operatives

(xii) Which of the following is not an example of unfair trade practices?
(a) Wrong information about goods and services
(b) Compelling consumers to buy gas stove while getting gas connection
(c) Not observing prescribed standards
(d) Indulging in hoarding
Answer:
(b) Compelling consumers to buy gas stove while getting gas connection

Question 2.
Fill in the Blanks ( 1 x 6 = 6)

(i) Principles of management are in the continuous process of …………. [1]
Answer:
refining

(ii) A ………. is a person who buys any product or avails any service for a consideration. [1]
Answer:
consumer

(iii) Management of …………….. is linked with both, management of work as well as management of people. [1]
Answer:
operations

(iv) With the onset of the thought of producing a thing, the process of ………… starts. [1]
Answer:
marketing

(v) Staffing leads to efficient use of………… resources. [1]
Answer:
human

(vi) …………function of management is related to both ends and meAnswer: [1]
Answer:
Planning

Question 3.
Very Short Answer Type Questions (1 x 12 = 12)

(i) What do you mean by consumer protection? [1]
Answer:
To protect the consumers against the unfair trade practices of the producers and sellers is called consumer protection. Any activities. or steps taken to protect the consumers will be referred to as , consumer protection.

(ii) What do you mean by a customer? [1]
Answer:
A customer refers to people or organizations who want to satisfy their needs By purchasing products from the market.

(iii) Define ’Workforce Analysis’. [1]
Answer:
Workforce Analysis is an assessment of the number and type of human resources available for the performance of various jobs and accomplishment of organisational objectives.

(iv) Define ‘Selection’. [1]
Answer:
Selection is defined as the process of choosing from among the pool of prospective job candidates developed at the stage of recruitment.

(v) Which element in the communication process involves converting the message intc words, symbols, gestures, etc.? [1]
Answer:
The element of encoding of the communication process involves converting the message into words, symbols, gestures etc.

(vi) What does ‘Status’ as a non financial incentive refer? [1]
Answer:
Status refers to the ranking of positions in an organisation.

(vii) Give any two examples of employee recognition as a non-financial incentive. [1]
Answer:
Two examples of employee recognition are:
(i) Installing awards or certificate for best performance,
(ii) Displaying on the notice board or in company newsletter about the achievement of employes.

(viii) What is meant by motivation ? [1]
Answer:
Motivation is the process of stimulating people to act voluntarily to accomplish desired goals.

(ix) Name some type of formal communication. [1]

Answer:
Single chain, Wheel and Free flow.

(x) What is meant by ‘Rule’ ? [1]
Answer:
Rule is a specific statement that informs what is to be done and what not. They must be strictly followed and in one cannot alter them.

(xi) Why is management all pervasive? [1]
Answer:
Management is all pervasive as it is needed and used at all levels and in every field.

(xii) State any two points of importance of planning. [1]
Answer:
(xii)
(i) Planning reduces the uncertainties of risk,
(ii) Planning is helpful in decision-making.

Section- (B)

Short Answer Itype Questions-I ( 2 x 13 = 26)

Question 4.
What is meant by management? [2]
According to Harold Koontz and Heinz Weihrich, “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”

Question 5.
If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What are the consequences of it? [2]
Answer:
If an organisation does not provide the right place for physical and human resources in an organisation, the principle that is being violated is the ‘Principle of Order’. There will be no obstacles in the functioning of a business/factory, if there is a fixed place for everything and everything is present at its place. This will also result into increase in productivity and efficiency. If this is not followed, this will create a great ‘ confusion in an organisation and the time and cost will be lost to search for each and every thing. It will also lead to the decline in the efficiency and productivity of the workers as they will lose their energy in search of these things.

Question 6.
Why are rules considered to be plAnswer:? [2]
Answer:
Rules are specific statements providing information regarding what is to be done. They do not have room for any flexibility or discretion. A rule signifies a managerial decision whether a certain action must or must not be taken. Rules are mostly the simplest type of plAnswer: because there is no compromise or change in them unless a policy decision is taken.

Question 7.
What is meant by staffing? [2]
Answer:
In brief, staffing is ‘putting people to jobs’. It starts with workforce planning and includes various other functions, such as- recruitment, selection, training, development, promotion, compensation and appraisal of performance of work force. Hence, staffing is that part of -the proc’ess of management which is associated with obtaining, utilising and maintaining a satisfactory and satisfied work force.

Question 8.
What is informal communication? [2]
Answer:
Informal communication is one which takes place without following the formal lines of communication. Informal system of communication is mostly referred to as the ‘grapevine’, because it spreads throughout the organisation with its branches spreading in all directions while fully ignoring the levels of authority. Informal communication emerges out of the needs of the workers to exchange their ideas, which is not possible under formal channels of communication.

Question 9.
‘Science is a systematized body of knowledge that explains certain general truths or the operation of general laws.’ In the light of this statement, describe management a science. [2]
Answer:
Science is a systematized body of knowledge that explains certain general truths or the operation of general laws.’ Management is a science but not an exact science. The reasons are:
(i) Systematised body of knowledge:
Like science, management is a systematised body of knowledge with its own theories and principles that have developed over a period of time. So, this feature of science is present in management.

(ii) Principles based on observation ‘ and experimentation:
Like science, management principles are derived through observation and repeated experimentatifin. So, this feature of science is present in management. However, since management deals with human beings, the outcome of these experiments are not capable of being accurately predicted.

(iii) Universal validity:
Principles of management like principles of pure science provide managers with certain standardized techniques that can be used in different situations. Since they have to be modified according to a given situation, their application and use is not universal. So, this feature of science is not fully present in management,

Question 10.
Why is it a social responsibility of a businessman to full supply standardised goods to the consumers? [2]
Answer:
Business organisations make money ” by selling their products to the consumers. It is thus the social responsibility of every business organisation to protect the interest of their stakeholders (like shareholders, employees, consumers, suppliers, competitors, government etc.) and satisfy them. Every business house exists for serving the needs of the society for which they use resources of the society.

Question 11.
Explain how does government protects the interest of consumers? [2]
Answer:
The government of a country can protect the interest of consumers by forming various legislations. For example, Government of India (GOI) has passed various legislations that provide protection to consumers like Consumer Protection Act 1986, which provides a three-tier machinery for redressal of consumer grievances and forming a central authority known as Central Consumer Protection Authority (CCPA). GOI have also set up a toll free National consumer helpline number 1800114000 for the purpose of consumer protection.

Question 12.
What is marketing? What functions does it perform in the process of exchange of goods and services? Explain. [2]
Answer:
Marketing refers to all those activities which help in carrying goods and services from the producers to the ultimate consumers. According to Philip Koder, “Marketing is that social process by which individuals and groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others.” Marketing performs the following functions in the process of exchange of goods and services

1. Product planning,
2. Product designing,
3. Product packaging,
4. Product labelling,
5. Product branding,
6. Warehousing
7. Transportation,
8. Support services.

Question 13.
Distinguish between the product concept and production concept of marketing. [2]
Answer:

Basis of Difference	Product Concept	Production Concept
1. Belief	The basis of this thinking is that the customers are attracted towards a particular product if the quality of that product is good.	The basis of this thinking is that the consumers will be favouring those products that are readily available and are affordable in terms of money.
2. Focus	The main focus under this thinking is on continuous improvement         and innovation in terms of quality and features of the product.	The focus is on increasing production quantity and improving the efficiency of production and distribution, thereby reducing production cost.
3. Methodology	Profit earned through good quality products is the main idea under this philosophy.	Profit earned through maximizing production and minimizing production cost is the main idea under this philosophy.

Question 14.
Name the segments of the National Stock Exchange (NSE). [2]
Answer:
It has two market segments:

1. Wholesale Debt Market Segment:
   It provides a platform for trading in fixed income securities.
2.  Capital Market Segment:
   This segment deals in trading of equity shares, preference shares, debentures, as well as retail government securities.

Question 15.
State any two reason ions why investing public can expect a safe and fair deal in the. [2]
Answer:
Following are the two important reasons why investing public can expect a safe and fair deal in the stock exchange:
(i) Safety of transactions:
The government strictly governs and . regulates the stock exchanges according to the legal framework. This ensures that the investing public gets a safe and fair deal in the market.

(ii) Spreading of equity cult:
Through regulating new problems, improving trading practices, and taking proactive measures to educate the public about investments, the stock exchange plays a critical role in ensuring broader share ownership.

Question 16.
What makes principles of management flexible? [2]
Answer:
Management principles are not absolute. They are used by the manager as per the demand of the circumstances. A manager has to assess the situation and then he has to apply those principles which are best suited at that time. So, the principles of management are flexible.

Section- (C)

Short Answer Type Questions-II  ( 4 x 3 = 1 2)

Question 17.
Explain the recent Capital Market reforms in India.
Or
Give the meaning of the following money market instrumeiits (i) Treasury bill, and (ii) Call money.
Answer:
Capital market is a market that deals in the trading of long term and medium term securities. It deals in the securities with a maturity period of more than one year. Development banks, commercial banks, and stock exchange are its major participants. Reforms in Indian Capital Market: Many years before, the capital market securities were sold through auction in the open market. Security trading is now done through a eb-based, screenbased electronic trading system. Simply put, all shares and debentures are bought and sold via a computer terminal.

A stock exchange’s main computer system is connected to numerous terminals throughout the world. Securities are traded by representatives of the stock exchange, who are brokers. The ‘ stock market floor has given way to the brokers’ office for trading. For that computer terminal, every broker has an access to it and the connection is done to the main stock. A member logs on to the platform and enters any details about the shares he wants to buy or sell, as well as the price, into the machine. The programme is set up in such a way that the transaction will be completed until a counter-party order is detected. The entire transaction takes place on a computer screen, with both parties able to see the values of all shares fluctuate up and down at all times during the transaction and during stock exchange business hours.

In the broker’s office, a machine is continuously matching orders at the best bid and offer prices, and those which do not match, remain on the screen. Now share brokers can enter into the market only after the registration with any stock exchange. Now, the- company has to follow strict rules and regulations put by the stock exchange and the regulator (SBI). Complete process of selling and purchasing of securities is now done through dematerialization, which means that only computer entries are passed. In this way, the Indian capital market is on the way of significant progress. Now, Indian capital market is considered as one of the biggest capital markets of the world.

Question 18.
How are industrial products different from consumer products? Explain. [3]
Or
“Though branding adds to the cost, it provides several advantages to the consumers “. In the light of the statement, state any three advantages of branding to customers.
Answer:
Industrial products are different from consumer products.

Basis of Difference	Industrial Products	Industrial Products
1. Meaning	Products which are used as inputs or raw material in producing finished goods are called industrial goods.	Products which are used as inputs or raw material in producing finished goods are called industrial goods.
2. Number of Buyers	The buyers of industrial goods are limited.	The buyers of industrial goods are limited.
3. Channel of Distribution Used	Shorter or direct channels of distribution are required for such products.	Shorter or direct channels of distribution are required for such products.
4. Location	Such products are generally concentrated in areas where there are more industries that require such products.	Such products are generally concentrated in areas where there are more industries that require such products.
5. Demand	These products have derived demand, which means that it is based on demand of consumer products.	These products have derived demand, which means that it is based on demand of consumer products.
6. Role of Technical Features in Decision-making	Decision of buyers are influenced by the technical specification and goodwill.	Decision of buyers are influenced by the technical specification and goodwill.
7. Examples	For example- Raw materials,  engines, lubricants, machines, tools etc.	For example- Raw materials,engines, lubricants, machines, tools etc.

Question 19.
Explain briefly ‘unit of direction’ and ‘order’ as principles of general .management. [3]
Or
State any three points which highlight the importance of principles of management.
Answer:
‘Unity of direction’ and ‘order’ as principles of genral management are discussed below:
(i) Unity of direction ‘One unit and one plan’ for the group of activities having the same objective is the essence of this principle. It implies that there should be one head and one plan for a group of activities having the same objective. It means that the efforts of members of the organisation should be directed towards the achievement of a common goal. It was forwarded by Fayol.

(ii) Order According to Fayol, ‘People and material must be in Suitable place at appropriate time for maximum efficiency. This principle states that there should be a place for evrything and everyone in an organisation and that thing or person should be found at its alloted place. This will lead to increased Productivity and effectiency.

Question 20.
How is recruitment different from selection? [3]
Or
Explain the internal sources of recruitment.
Answer:
Difference between recruitment and selection: It is the second stage of It is the third stage of staffing staffing process. It is a call for the applicants to It is an offer of the job to the apply for the job. selected candidates.

Section- (D)

Long Answer Type Questions (3 x 4 = 1 2)

Question 21.
Do you think management has the characteristics of a full-fledged profession? [4]
Or
A Arm plAnswer: in advance and has a sound organisation structure with efficient supervisory staff and control system but on several occasions it finds that plAnswer: are not being adhered to. It leads to confusion and duplication of work. Advice remedy.
Answer:
Management as a profession Management can be referred to as the occupation which needs some specific knowledge and skill and the entry for which is restricted with some specialized skill which is acquired by the respective professional body.

The features of profession are as follows:
(i) Well:
defined body of knowledge: All types of professions are based on a well-defined body of knowledge which can be obtained through instructions.

(ii) Restricted entry :
The entry to a profession is restricted through an examination or through acquiring an educational degree.

(iii) Professional associatiqn :
All professions are affiliated to a professional association that regulates entry, grants certificate of practice and formulates and enforces a specific code of conduct.

(iv) Ethical code of conduct :
All professions are bound by a specific code of conduct that guides the behaviour and actions of its members.

(v) Service motive:
The primary motive of every profession is to serve their client’s interests by providing dedicated and committed service. Although, management does not meet the exact criteria of a profession, yet it incorporates some of the features of a profession as it is clear from the points given below:

(i) Growth in management as a discipline has been significant across the world. It is based on a systematic body of knowledge comprising a set of well-defined principles based on varied business situations. This knowledge can be acquired from various colleges and professional institutes and through numerous books and journals. Management as a subject is taught in various institutions. Some of these have been set up with the ultimate objective of providing management education. For example, the Indian Institutes of , Management (IIMs) in India. Entry to different institutes is usually possible only through an examination.

(ii) Anyone can be designated or appointed as manager in any business enterprise without any restriction. Irrespective of the educational qualifications possessed, anyone can be called a manager. Nowhere in the world, it’s compulsory for a manager to possess any such specific degree, contrary to professions like medicine or law that require a practicing doctor or a lawyer to have valid degrees. As there is greater demand for those who possess degrees or diplomas from reputed institutions, professional knowledge and training is considered to be a desirable qualification. Thus, as such, the second criterion has not been strictly met.

(iii) The AIMA (All India Management Association) is one of those associations of practicing managers in India, which has laid down a code of conduct in order to regulate the activities of their members. However, there is no compulsion for managers to be members of such an association nor does it have any- statutory approval.

(iv) To help the organisation achieve its stated goal is the fundamental objective of management. This may be service for a hospital and profit maximisation for a business enterprise. But, profit maximisation as the ultimate objective of management does not hold true and it is fast changing in the present secnario. Therefore, an organisation automatically serves the society by providing good quality products at reasonable prices, provided it has a good management team that is efficient and effective. On the basis of the above discussion, we can say that management has some of the features of profession but it is not a full- fledged profession, and only a developing profession.

Question 22.
Explain the following Principles of management given by Fayol with examples: [4]
(a) Unify of direction
(b) Equity
(c) Espirit De Corps
(d) Order
Or
Explain the following techniques of scientific management.
(i) Time study
(ii) Motion study.
Answer:
(a) Unity of Direction:
Through coordinated and focused efforts, all the departments of a business organisation should aim at achieving common objectives. Each group of tasks having the same objective must have a single head and a single plan in order to ensure unity of action and coordination. For example, if a company is involved in the manufacturing of motorcycles as well as cars then it should have two separate divisions for each one of them. Each division should have its own in-charge, plans and resources to execute them. There should not be any overlapping in the functioning of the two divisions whatsoever.

(b) Equity:
Fayol says that, “Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible”. This principle suggests kindliness and justice in the behaviour of managers towards workers as this will ensure loyalty and devotion. However, Fayol does not rule out the use of force at times, rather he suggests that lazy employees should be dealt with strictness in order to deliver the message that everyone is equal in the eyes of the management. No discrimination should be done against anyone on account of sex, religion, language, caste, belief or nationality etc. In present-day multinational corporations, people from various nationalities can be seen working together in an environment free from all types of discrimination. Such organizations provide equal opportunities for everyone to rise and flourish.

(c) Espirit De Corps:
Fayol suggests that die management should provide encouragement to the team spirit of unity and harmony among the employees. This is exclusively applicable in large organizations, where it would be extremely difficult to fulfill the objectives in the absence of team spirit. Along with this, it will also result in a loss of coordination. A manager should replace T with We’ in all his conversations with his co-workers in order to promote team spirit. This will minimize the need of giving penalties and also give rise to a spirit of mutual trust and belongingness among the employees.

(d) Order:
Fayol believes that, “People and materials must be in suitable places at appropriate time for maximum efficiency. “According to the principle of order, “A place for everything (everyone) and everything (everyone) in its (her/his) place”. In brief, it means orderliness. There will be no obstacles in the functioning of a business/ factory, if there is a fixed place for everything and everything is present at its place. This will also result into increase in productivity and efficiency.

Question 23.
What are semantic barriers of communication? [4]
Or
Explain any four points of importance of directing function of management.
Answer:
Semantic barriers:
Semantics is the branch of linguistics which deals with the meaning of words and sentences. Semantic barriers of communication are associated with problems and obstructions in the process of encoding and decoding of message into words/impressions. Generally, such barriers emerge due to the use of incorrect words, faulty translation, variations in interpretation, etc. These are discussed below:

(i) Badly expressed message:
Sometimes, a manager may be unable to convey the intended meaning to his followers or subordinates. These badly-expressed messages may be due to incorrect vocabulary, usage of wrong words, omission of the required words or statements etc.

(ii) Symbols with different meanings:
One word may have multiple meanings. The receiver of ‘ the message has to perceive one such meaning for the word used by the communicator. Wrong perception results into communication problems.

(iii) Faulty translations:
Sometimes, communication originally drafted in one language (for e.g., English) requires to be translated into the language understandable to the employees (for e.g., Hindi). If the translator is not proficient in both English as well as Hindi, mistakes may emerge resulting into different meanings to communication.

(iv) Unclear assumptions:
At times, communication may have certain assumptions which are subject to different interpretations. For example, a superior may tell his subordinate, “Take care of our guests”. Here, the superior may mean that the subordinate should take care of transport, food and’ accommodation of the guests until they stay there. However, the subordinate may interpret that guests should be taken to the hotel with due care. In such circumstances, the guests suffer due to these unclear assumptions.

(v) Technical jargon:
Mostly, it is observed that specialists use technical jargon while explaining things to persons who are not specialists in the respective field. Therefore, they may not understand the actual meaning of various such words.

(vi) Body language and gesture decoding:
Every movement of body communicates some or the other meaning. The body movement and gestures of the communicator matter a lot in conveying the right message. If there is mismatch between what is said and what is expressed in body movements, communication may be wrongly perceiv