Students must start practicing the questions from RBSE 12th Business Studies Model Paper Set 2 with Answers in English Medium provided here.
RBSE Class 12 Business Studies Model Paper Set 2 with Answers in English
Time : 2:45 Hours
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.
Objective Type Questions (1 x 12 = 12)
(i) Sellers often adopt unfair trade practices to increase the sale of their products. Some examples of such unfair trade practices are…. 
(a) Misleading advertisements
(b) Fake price stickers on product
(c) Supply of cheap quality products
(d) All of the above
(d) All of the above
(ii) Which Of the following is a basis for a complaint? 
(a) Defective item
(b) Deficiency in service
(c) Charging more
(d) All of these
(d) All of these
(iii) “Products are not purchased but sold. With which philosophy does this statement relate to? 
(a) Product Concept
(b) Production Concept
(c) Selling Concept
(d) Marketing Concept
(c) Selling Concept
(iv) ………… thinking lays stress on customer welfare. 
(d) Social Marketing
(d) Social Marketing
(v) Which of the following is the function of marketing? 
(b) Physical distribution
(d) All of the above
(vi) Whichof the following is a money market instrument? 
(a) Unit of mutual fund
(d) Treasury bill
(d) Treasury bill
(vii) The major participants in the money market are- 1
(a) Reserve Bank of India
(b) Commercial Banks
(c) Non-Banking Finance Companies
(d) All of these ,
(d) All of these ,
(viii) Which types of plAnswer: are interconnected with each other?
(a) Policy and procedure
(b) Objective and policy
(c) Objective and method
(d) Policy and rule
(a) Policy and procedure
(ix) Which of these is not a single-use plan?
(x) Which of the following groups of managers is involved in the staffing process?
(a) Only top level managers
(b) Only HR managers
(c) Only middle level managers
(d) All of these
(d) All of these
(xi) Which of the following is a career-oriented process? 1
(xii) Supplying wrong bills by electricity and telephone departments are examples of which of the following?
(a) Defective things
(b) Deficiency of services
(c) Charging more prices
(d) Unfair trade practices
(b) Deficiency of services
Fill in the Blanks (1 x 6 = 6)
(i) Principles of management denote a………… relationship 
cause and effect
(ii) Any activities of steps undertaken to protect consumers will be referred to as ………. 
(iii) ………. is like a thread in the garland- it is a part of all management activities, 
(iv) …….. starts after the production ends. 
(v)……… is the process of management concerned with obtaining, utilising and maintaining a satisfactory and satisfied work force. 
(vi) The …………….. of planning throw light on its nature and scope also. 
Very Short Aniwer Type Questions (1 x 12 = 12 )
(i) Why is consumer protection necessary? .1
Consumer Protection is necessary because most of the consumers are unaware about their rights, responsibilities and reliefs available to them. Consumer Protection is necessary in order to protect the consumers from getting injured or loss because of malpractices of the manufacturers or sellers.
(ii) Who is a marketer? 
A marketer or seller is a person or an organization that provides goods or services to satisfy the needs of the customers. For example, Haldirams and Archies Gallery, greetings and gifts are marketers.
(iii) Why is ’employment interview’ conducted in the process of selection? 
Employment interview is conducted to evaluate the applicant’s suitability for the job.
(iv) What do you mean by staffing as a function of management? 
Staffing refers to place the right person on the right job.
(v) Give the meaning of ‘motivation’ as an element of directing. 
Motivation means stimulating people to act in a desired manner to achieve certain organizational goals.
(vi) What does job enrichment include?
Job enrichment includes designing jobs that include greater variety of work content, require higher level of knowledge and skills; grant workers more autonomy and responsibility; and provide the opportunity for personal growth and a meaningful work experience.
(vii) Give any two characteristics of organisational climate that influence the behaviour of individuals and act as a non financial incentive. 
Characteristics of organisational climate are:
(i) Reward orientation,
(ii) Individual autonomy.
(viii) Give the meaning of ‘autocratic’ style of ‘leadership’. 
Under this style, all decision¬making power is vested in the leader and he exercises complete control over his subordinates.
(ix) What serves as an obstruction to communication? 
(x) Give the meaning of ‘Method’ as a type of plan. 
‘Method’ as a type of plan provides the prescribed ways or manner, in which a task, has to be performed considering’ the objectives. They are formalised and standardised ways of accomplishing repetitive and routine jobs and thus, are considered under the standing plan. It deals with a task which may be a step of a procedure and .specifies how a step is to be performed; e.g. methods of training, methods of recruitment, etc.
(xi) State any two limitations of planning.
(i) Planning declines the creativity,
(ii) Planning increases the cost.
(xii) State any two features of planning. 
(i) Planning reduces activity,
(ii) Planning is all pervasive.
Short Answer Type Questions-I (2 x 13 = 26)
Identify and state the force that binds all the other functions of management. 
Coordination is the force that binds all the other functions of management. It is the common thread that runs through and coordinates all the activities like purchasing, production, sales and finance, in order to ensure continuity in the working of the organisation.
Explain any four points regarding significance of principles of management. 
(i) Following these principles of management adds to the managers’ knowledge, ability and understanding of managerial situations and circumstances and the principles of management provide the managers with useful insights into real world situations.
(ii) Principles of management ensure optimum utilisation of resources and effective administration.
(iii) These principles help to take scientific decisions, which bring a perfection in the organisation and also help in the development of the organisation to its greatest extent.
(iv) These help an organisation in adapting to the changing environmental requirements.
If planning involves working out details for the future, why does|it not ensure success? 
Planning does not ensure success in future because proper formulation and implementation of plans ensures the success of an enterprise. Every plan needs to be translated into action or it goes waste. There is a tendency of managers to rely on previously tried and tested successful plans, but is no surety, that just because a plan has worked well before it will work well again. In addition to this, there are various other unknown factors also, which have to be considered. This type of self approval and false sense of security may, in fact, lead to failure in place of success.
State the two important sources of recruitment 
The two important sources of recruitment are as follows:
- Internal sources of recruitment
- External sources of recruitment.
Which style of leadership does not believe in use of power unless it is absolutely essential? 
A laissez faire or free-rein leader does not believe in the use of power unless it is absolutely essential. Under this, the subordinates are provided a high degree of independence to formulate their own personal objectives and the ways to accomplish them.
Management is a complex activity that has three main dimensions. Explain these dimensions. 
Management is a complex activity that has three main dimensions. These dimensions are:
- Management of work
- Management of people
- Management of operations
Define consumer? 
As per CPA, 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.
Name any two NGO’s which are working in India to protect and promote the interests of consumers? 
Voluntary Organisation in Interest of Consumer Education (VOICE) (New Delhi), Consumer Guidance Society of India (Mumbai), Common Cause (New Delhi), CERC (Consumer Education and Research Centre) (Ahmedabad), CUTS (Consumer Utility and Trust Society) (Jaipur), Citizen Action Group (Mumbai) Consumer’s Action (Delhi, Chennai, Udupi and Kolkata), Mumbai Grahak Panchayat (Mumbai).
Product is a bundle of utilities. Explain. 
From the customer’s point of view, a product is a bundle of utilities, which is purchased because of its capability to provide satisfaction of certain need. A customer will purchase a product only if it provides some kind of satisfaction or utility after use. A customer gets many kinds of benefits from using a product . like – functional, social and psychological benefits. Therefore, it can be said that a product is a bundle of utilities as there are many benefits derived by a customer after using a product.
What is the societal concept of marketing ? 
The societal concept of marketing lays stress not only on customer satisfaction,’ but it also gives importance to the welfare of the society at large. According to this concept, a company should pay attention towards social, ecological and ethical aspects of marketing and they should consider the impact of their product on environmental ‘ pollution, deforestation, shortage of resources, population explosion etc. For example, Adidas a sportswear brand in India, manufactures such products that can be reused.
Write the two functions of Financial Market 
Two functions of the financial market are as follows:
(i) Mobilisation of savings and channeling them into the most productive uses:
Financial market is a place where savings get transferred from savers to the investors, giving the choice of different investments, helping to channelise surplus funds into the most productive use to the savers.
(ii) Facilitating price discovery:
Households are the sources of funds in the stock sector, while businesses are the demand. The interaction between them aids in the determination of a price for the financial commodity being exchanged in that market.
“Money market is essentially a market for short term funds.” Discuss. 
Money market is a market used for short term funds dealing in monetary assets for a period of maturity of not more than a year. It is a low-risk market and the assets are close substitute for the money. In this, low- risk, unsecured and short-term debt instruments that are highly liquid are issued and actively traded every day. It does not have a physical venue, and it is a telephone and internet- based operation. It allows the temporary deployment of surplus funds for earning returns as Well as the raising of short-term funds to meet temporary cash and obligation shortages. The Reserve Bank of India (RBI), commercial banks, non- banking finance companies, state governments, large corporate houses and mutual funds are some of the major participants in the money market.
State the main objective of time study.
The main objective of time study is to determine the standard time taken to conduct a well-defined task. It aims at deciding the number of workers to be employed; forming appropriate incentive schemes and calculating labour costs.
Short Answer Type Questions-II (4 x 3 = 12)
Explain the functions of the SEBI. 
Financial market plays an important role in the allocation of scarce resources in an . economy by performing various functions. Explain any three functions of financial market.
Following are the functions of the SEBI: Regulatory Functions
- Registration of brokers and sub-brokers and other players in the market.
- Registration of collective investment ‘ schemes and mutual funds.
- Regulation of stock brokers, portfolio exchanges, underwriters and merchant bankers and the business in stock exchanges and any other securities market.
- Regulation of takeover bids by companies.
- Calling for information by undertaking inspection, conducting enquiries and audits of stock exchanges and intermediaries.
- Levying fee or other charges for carrying out the purposes of the Act.
- Performing and exercising such power under Securities Contracts (Regulation) Act 1956, as may be delegated by the Government of India.
- Training of intermediaries of the securities market.
- Conducting research and publishing information useful to all market participants.
- Undertaking measures to develop the capital markets by adapting a flexible approach.
- Prohibition of fraudulent and unfair trade practices like making misleading statements, manipulations, price rigging, etc.
- Controlling insider trading and imposing penalties for such practices.
- Undertaking steps for investor protection.
- Promotion of fair practices and code of conduct in securities market.
Distinguish between convenience products and shopping products. 
How does standardization and grading act as a marketing function? Explain.
|Basis of Difference||Convience Products||Shopping Products|
|1. Meaning||Those consumer products that are purchased frequently immediately and with least time and efforts are referred to as convenience goods.||Those consumer goods where buyers devote considerable time, to compare the quality, price, style, suitability, etc., at several stores before making final purchase.|
|2. Demand||The demand for such products is regular and continuous.||They are durable in nature and survive many uses, so there is no regular demand of such products.|
|3. Unit price and profit margin||The unit price and profit margin is generally low.||The unit price and profit margin is usually high.|
|4. Nature of purchase||The buyer is impulsive in purchasing these products without any time and effort.||Buyer pre plans before purchasing these products and compares between similar products.|
|5. Level of competition amongst manufacturers||The level of competition amongst manufacturers are usually high.||The level of competition is not as high as in case of convenience products.|
|6. Examples||Examples of such products are ice creams, medicines, newspapers, stationery items, toothpaste etc.||Example of such products are – clothes, shoes, jewellery, furniture, radio, television etc.|
Explain briefly ‘Initiative’ and ‘Esprit De Corps’ as principles of general management. 
Explain how principles of management:
(i) help in optimum utilisation of resources and effective administration and
(ii) help in thoughtful decision-making.
‘Initiative’ and ‘Esprit De Corps’ as principles of general management are discussed below:
(i) Initiative It means freedom to think of new ideas and execute them. The principle of initiative implies that the managers of an organisation should encourage their subordinates to take the initiative and think of new ideas or policies that are beneficial for the organisation and execute them. By encouraging initiative, the management can motivate employees to work better and harder.
(ii) Esprit De Corps This principle states that union is strength.
It refers to team spirit, i.e. harmony in the work group and mutual understanding among the workers. A group of workers working collectively in harmony and with mutual cooperation leads to the achievement of goals efficiently. Unity among the personnel can be accomplished through proper communication and coordination.
‘Human resource management includes many specialized activities and duties.’ Explain. 
Explain how staffing is a part of human resource management.
The traditional concept of labour welfare and personnel management has been replaced by human resource management. In its present form, Human Resource Management (HRM) has evolved from various important inter-related developments that date back to the era of industrial revolution. Uprising of trade union movement led to the need of an individual who could function as an effective link between the factory owners and the workers. Hence, the concept of labour welfare officer evolved. His role was restricted to the bare minimum welfare activities of the workers. In fact, he was looked down by both the workers and the owners. Following are some the specialized activities or duties performed by the Human Resource Management:
- Human resource management is a planning about the requisite number of employees in an organisation and at what position just like the staffing process.
- Recruiting the candidates through various available sources.
- Determination of the job requirements to perform a particular job.
- Determination of the fair remuneration to be paid to the employees.
- Conducting the job appraisal using different available methods.
- Maintaining harmonious relations between the workers.
- Ensuring the smooth functioning of the organsation without any lack of human resource.
Long Answer Type Questions (3x 4 = 12)
‘Management is a series of continuous interrelated functions’. Comment. 
State the basic features of management as a profession.
Management refers to the process of planning, organising, directing and controlling the efforts of organisational members and of using organisational resources in optimum manner in order to achieve specific goals. Following are the functions of management:
(i) Planning :
Planning is the function of determining in advance what is to be done in the future and who is to do it. This denotes setting goals in advance and developing a way of achieving them in an effective and efficient manner. For example, in Smita’s enterprise, the objective is production and sale of designer candles. Smita has to make decision regarding the quantities, variety and colour and then allocate resources for their purchase from different suppliers or for their in-house development. .
(ii) Organising :
Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. After the establishment of a specific plan for the accomplishment of an organisational goal, the organising function examines the activities and resources needed to implement the plan. It determines which activities and resources are required.
(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. This requires establishing an environment, which encourages employees to give their best performance. Motivation and leadership are the two essential and key components of direction.
(v) Controlling :
Controlling refers to the management function of monitoring the performance of the business towards the attainment of its goals. The task of controlling includes establishing standards of performance, measuring current performance, comparing this with pre-established standards and taking corrective action where and when any deviation is found. The above discussion tells that a manager first plans, then organises, puts staff in position, then directs, and finally controls. In real world, managers are rarely able to carry out these functions in isolation. As the activities of a manager are interrelated, it is often difficult to identify where one ended and the other began.
Explain the technique of ‘Functional ForemAnswer:hip’ and the concept of ‘Mental Revolution’ as enunciated by Taylor. 
Explain any two techniques of Taylor’s scientific management.
In the factory system, the forertian is the lowest ranking manager and the highest ranking worker and he represents the managerial figure with which the workers are in face-to- face contact on a regular basis. He is the pivot around whom the entire production, planning, implementation and control revolve. In order to improve the performance of the role of foreman in an organisation, Taylor identified a list of qualities of a good foreman/supervisor and discovered that no single person could fit them all. This made him suggest functional foremanship through eight individuals.
Taylor advised separation of the functions of planning and execution. Known as functional foremanship, this concept was extended to the lowest level of the shop floor. There was a planning in charge and a production in charge under the factory manager. Four personnel, namely instruction card clerk, route clerk, time and cost clerk and a disciplinarian worked under the planning in-charge. These four individuals performed the task of drafting instructions for the workers, specify the route of production, prepare time and cost sheet and ensure discipline, as well. Speed boss, gang boss, repair boss, and inspector were the personnel who worked underproduction incharge.
These respectively used to perform the task of tinjely and accurate completion of job, keeping machines and tools etc., ready for operation by workers, ensuring appropriate working condition of machines and tools and checking the work quality. Mental revolution: Mental revolution suggests a change in the attitude of workers and management towards one another from competition to cooperation and both should realise that they are complimentary to each other. In order to prevent conflicts and chaos, both should aim to increase the amount of surplus. On one hand, the management should share a part of surplus with workers, and on the other,hand, the workers should also provide their optimum contribution so that the company makes maximum profits. This attitude will be beneficial for the workers as well as the management and it should be remembered that only the satisfaction and well being of the workers will ensure prosperity of the business in the long run.
Explain’the four qualities of a good leader. Do the qualities alone ensure leadership success? 
Explain the organisational barriers to communication.
The qualities of a good leader are as follows:
(i) Physical features:
The physical personality of a person is determined by various physical features, such as- height, weight, health and appearance. It is believed that good physical features attract people. Health and endurance help a leader to work hard, which inspires others to work with the same temperament and spirit.
A good leader should have the necessary knowledge and competence to put things right. Only such an individual is able to instruct his subordinates and influence them in the required manner.
A leader should possess a high level of integrity and honesty. He should be a role model to other people regarding ethics and values.
A leader should have courage and initiative. In addition to this, he should not wait for opportunities come to his way, and in place, of this, he should rather grab the opportunity and use it to the advantage of the organisation.