Students must start practicing the questions from RBSE 12th Business Studies Model Paper Set 3 with Answers in English Medium provided here.
RBSE Class 12 Business Studies Model Paper Set 3 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) A complaint can be filed against the seller or a manufacturer whose goods are in any manner. 
(d) None of these
(ii) Which of the following is a reason why a businessman should lay emphasis on protection of consumers and their interests? 
(a) For long term profit maximization
(b) For fulfilling social responsibility
(c) To avoid government intervention
(d) All of the above
(d) All of the above
(iii) Which of the following is the function of marketing? 
(a) Gathering and analysing market information
(b) Marketing planning
(c) Standardisation and grading
(d) All of the above
(d) All of the above
(iv) Zoom Udhyog, a car manufacturing Co., has started its business with Zoom-800 and slowly launched Zoom-1000, Wagon-Z, Swy-fy, etc. and offered various services like after sales service, availability of spare parts, etc Identify the element of marketing mix referred here. 
(v) ONIDA Ltd. entered the market with colored televisions and now1 has introduced products like music system, AC, washing machine etc. The company is pot only offering quality products, but is also handling complaints of the customers and offering other after sale benefits. Identify the element of marketing mix discussed here 
(a) Place mix
(b) Product mix
(c) Promotion mix
(d) Price mix
(b) Product mix
(vi) It is also known as Zero Coupon Bond 
(a) Treasury Bill
(b) Call Money
(c) Commercial paper
(d) Certificate of Deposit
(a) Treasury Bill
(vii) It is also known as new issues market 
(a) Primary Market
(b) Secondary Market
(c) Tertiary Market
(d) None of these
(a) Primary Market
(viii) Which of these does not allow any flexibility or discretion? 
(ix) Which of the following assists in saving time and money and in increasing efficiency? 
(x) Which of these is an internal source of recruitment? 
(a) Casual callers
(b) Campus recruitment
(d) Direct recruitment
(xi) Time perspective in training is 
(a) Long term
(b) Medium term
(c) Short term
(d) Long or medium term
(c) Short term
(xii) Mr. Rohit bohght a mixer grinder of a reputed brand for ? 3500 but it caused electric shock while being ip used. Now Mr. Rohit wants to exercise his right. Identify the right under which he can\be protected 
(a) Right to safety
(b) Right to be informed
(c) Right to be heard
(d) Right to seek redressal
(a) Right to safety
Fill in the Blanks ( 1 x 6 = 6)
(i) ……… Wasjthe first to identify four principles of management. 
(ii) Caveat……………….meAnswer: let the buyer beware. 
(iii) Employees in all the organisations carry out diverse tasks with the aim to achieve. objectives. 
(iv) ……… is the one that is prepared keeping in mind requirements of the customers. 
(v) ….. methc d of training helps the workers learn while working with their superiors. 
(vi) Assumptions abAut the future are also known as ……….. 
Very Short Answer Type Questions (1 x 12 = 12)
(i) Explain the meaning of earlier approach of Caveat Emptor. 
The earlier approach of seller market CAVEAT EMPTOR – means “LET THE BUYER BEWARE”.
(ii) Define marketing. 
(ii) It refers to all those activities which move goods and services from the producers to the ultimate consumers. According to Philip Kotler, “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.”
(iii) What is the first step in the process of staffing? 
The first step in the process of staffing is to determine the manpower requirement.
(iv) State any two elements of staffing. 
The two elements of staffing are as follows:
(v) State any one importance of directing. 
Directing helps to initiate action by the employees towards the accomplishment of predetermined organisational objectives. For instance, if a supervisor guides his subordinates and clarifies their , doubts in performing a task, it will help the worker to achieve work targets provided to him.
(vi) What do you mean by leadership? 
Leadership is the process of influencing the behaviour of people by making them strive voluntarily towards achievement of organisational goals.
(vii) List any two non-financial incentives. 
Non-financial incentivs include:
(ii) Career advancement,
(viii) What is meant by ’Democratic style’ of leadership ? 
Under this style, all decision¬making power is vested in the leader and he exercises complete control over his subordinates.
(ix) Write the sequence of steps involved in the communication process. 
Sender, Message, Encoding, Media, Decoding, Receiver, Feedback.
(x) Give the meaning of ’programme’ as a type of plan. 
These are the combination of goals, policies procedures and rules. The programmes, are made to achieve specific objectives. For example, there might be a project of constructing a shopping mall.
(xi) How is ’planning a pervasive function of management’ Explain. 
Planning is a pervasive function of management, as it is required in all types of organizations, at all levels of management and in all departments of an organization. It is neither an exclusive function of top management nor of any particular department.
(xii) Varsha Jain after completing her fashion designing course from Indian Institute of Fashion Technology planned to enter into designer clothing venture. She had to address issues like her target customers, channel of distribution to be used, pricing policy etc. Identify the type of plan that Varsha Jain needs to develop to provide I direction and scope to her organisation in the long run. 
Short Answer Type Questions-I (2 x 13 = 26)
Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organisation? What are her basic functions? 
Ritu has been functioning at the middle level management in the organization. The following are the basic functions of Ritu:
- She acts as a link between top and lower level management.
- She is subordinate to the top level managers and superior to the first line managers. ,
- Implementing and controlling plans and strategies developed by top management is the responsibility of middle management. She also performs these functions.
- Her primary task is to carry out the plans formulated by the top managers.
Explain the principle of ‘Scalar Chain’. 
The formal lines of authority from highest to lowest ranks are known as scalar chain of an organisation, which consists of superiors and subordinates. In the words of Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.
What kind of strategic decisions are taken by business organisations? 
The following types of strategic decisions are taken by the business organizations:
(i) Whether the company will follow the same line of business or will add some new fines of business.
(ii) The company will continue its business in the existing market or the new potential markets will be searched.
(iii) What kind of pricing policy will be followed by the company as per the current market situations.
(iv) What type of advertisement policy will be followed by the company. Whether the company will follow the traditional methods of advertisement or new methods of advertisements will be used by the company.
The workers of a factory remain idle because of lack of knowledge of hi-tech machines. Frequent visit of engineer is made which causes high overhead charges. How can this problem be removed? 
This problem can be overcome by giving the employees ‘Vestibule Training’. It will enable the workers operate the machine by taking the training on the dummy machine. It will save the cost of the company and the workers will be able to do their work without the help of the engineer.
State three features of directing function of management 
Features of directing function of management:
(i) While other functions prepare a setting for action, directing initiates action by people in the organisation towards attainment of desired objectives.
(ii) Directing takes place at every level of management. Every manager, from top executive to the supervisor, performs the directing function.
(iii) Directing is a continuous process as ‘ it takes place throughout the life of the organisation, irrespective of the people occupying managerial positions.
What are the personal objectives of the business? 
People having different personalities, backgrounds, experiences and objectives form a part of various organisations. All individuals become part of the organisation to satisfy their different requirements. These may include financial requirements like competitive salaries and perks, social requirements like peer recognition and higher level requirements like personal growth and development. Reconciliation of personal goals with organizational objectives is essential for management in order to bring harmony and coordination in the organisation.
Define complaint and complainant. 
Complaint: Any allegation in writing made by the complainant for obtaining relief with reference to any restrictive trade practice, defect in goods or deficiency in services provided, overcharging of price or offer of goods or service injurious to life and safety.Complainant: It means one or more consumers, or any voluntary consumer association, central or state government or the central authority or a legal heir or legal representative or a parent or legal representative in case of a minor.
Explain different types of unfair trade practices followed by a trader. 
In order to increase their sales, market share and profits, producers and sellers may engage themselves in unfair and unscrupulous trade practices like
- Adulteration of consumer goods by adding inferior substances,
- Selling poor quality or sub standard quality of goods and services that do not match with prescribed quality standards,
- Sale of counterfeit goods, like selling a product of lesser value than real,
- Sale of duplicate products,
- Use of short selling measures and malfunctioning weights to measure goods,
- Creation of artificial scarcity by hoarding or black marketing of goods,
- Over charging a product above their maximum retail price (MRP),
- Supplying defective goods,
- Misleading advertisements that falsely claim a product or service to be of superior quality or grade or standard but in reality they are not.
- Supply of inferior services, quality of which is much lesser than conditions agreed upon.
Describe the functions of labeling in the marketing of products. 
Labelling is an important part of packaging process. It gives its user a basic idea about the product and its uses. Some of the functions of labelling are
- A label provides complete description about a product and specifies its contents and other features like usage, date of manufacturing, batch number, various instructions etc.
- It helps in identification of a product or brand, so it is easy for the consumer to differentiate between products of similar types.
- It helps in classification of products according to the quality (grading).
- It helps businesses to promote their products. Attractive labelling is a great way of promoting any product.
- Labelling provides various information required by various laws in the country.
Discuss the role of intermediaries in the distribution of consumer non-durable products. 
Intermediaries or middleman are an important part of marketing of any product. They help in transfer of goods from the manufacturers to the ultimate consumers. In case of non-durable goods, intermediaries perform the following functions.
- Sorting of goods into homogenous based on various characteristics like size, quality, features, price etc.
- Accumulation of goods by maintaining a larger stock so as to ensure continuous flow of supply.
- Allocation of stocks into smaller and marketable lots.
- Maintaining a variety of goods at a single place.
- Helping the manufacturers in promoting the product by organizing demonstration, displays, contests etc. which helps in increasing the sales.
- Act as a negotiator and discuss and decide the various terms and conditions of sale by negotiating the price, quality, other terms and conditions, delivery, payment etc,
- Bearing the risk on account of price and demand fluctuation, spoilage, destruction etc. during the process of exchange.
Write two functions of the Stock Exchange. 
Following are the two functions of Stock Exchange:
Providing Liquidity and Market:
(i) ability to Existing Securities One of the most drawing factors of stock exchange is its nature of providing high liquidity. It gives the investors the chance to disinvest and reinvest according to their wishes. The securities can be sold and can also be converted into cash.
Pricing of securities:
(ii) The only way to determine the price of securities is via the rules of supply and demand. A stock exchange enables the process via constant valuation of all the securities and such a Valuation provides important instant information to both buyers and sellers in the market.
What are the objectives of SEBI? 
Following are the objectives of SEBI:
- Regulates the functions of the stock exchange: SEBI regulates the functions of the stock exchanges and securities markets in order to ensure their 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 of malpractices: SEBI prevents trading malpractices and achieves a balance between self regulation by the securities market 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.
Which technique was used by Taylor for distinguishing efficient and inefficient workers? 
Taylor proposed ‘Differential Piece Wage System’ in order to distinguish efficient and inefficient workers. Taylor introduced different rate of wage payment for those who performed above standard and for those who performed below standard, in order to provide reward to efficient workers.
Short Answer Type Questions-II (4 x 3 = 12)
India’s largest domestic investor life Insurance Corporation of India has once again come to government’s rescue by subscribing 70% of Hindustan Aeronautics’? 4,200 crore initial public offering. 
(a) Which market is being reflected in the above case?
(b) State which method of floatation in the above identified market is being highlighted in the case? (Primary Market)
(c) Explain any two other methods of floatation. (Private Placement, Offer through prospectus, offer for sale).
Differentiate between the two segments of financial market on any three bases.
(a) Primary Market as a classification of capital market is being reflected in the above case.
(b) E-IPO method of floatation is being highlighted in the above case as the securities are being sold through initial public offering.
(c) The other two methods of floatation are as follows:
- Offer through Prospectus:
It is one of the most popular methods of raising funds in the primary market by the public companies. It includes issue of prospectus from the public by inviting subscription. Through newspaper and magazine advertisements, a prospectus makes a direct appeal to investors to collect … money. The issues are expected to A be published on at least one stock exchange and may be underwritten. The prospectus must adhere to the requirements of the Companies Act as well as SEBI’s disclosure and investor security guidelines.
- Offer for sale: Here, securities are not issued directly to the public, but through intermediaries like issuing houses or stock brokers, they are offered through sale. The company sells securities to the brokers at an agreed price, who resell them to the public who are willing to invest.
What is marketing concept? How does it help in the effective marketing of goods and services? 
Explain various types of products.
Companies which believe in the marketing concept are of the opinion that success can be achieved only through customer satisfaction. The basis of this thinking is that only those goods or services should be made, which the consumers wants or desires. In other words, companies do not sell what they make, but they make what they can sell. The emphasis of this concept is more on long-term profits which can be maximized only by identifying and satisfying the needs of present and potential customers.
Therefore, customer satisfaction has become the focal point of all business decisions under this concept. So, profit earned through satisfaction of customers is the key in this philosophy. Marketing concept puts emphasis on satisfaction of the customer. So all the activities related to marketing of goods and services thereby would be targeted towards customers. Because of this, companies will focus on customers only and they will try their best to market their products in such a manner that customers would buy them instantly.
Explain briefly ‘remuneration of employees’ and ‘scalar chain’ as principles of general . management. 
Explain the following techniques of scientific management :
(a) Fatigue study
(b) Differential piece wage system.
Remuneration of employees:
According toFayol, the quantum and methods of remuneration payable to employees should be fair and reasonable. It should be satisfactory for both employers and employees, which gives them a reasonable standard of living and should be within the paying capacity of the company.
The above figure illustrates the scalar chain. If D and O wants to communicate, the message should usually. move up through C, B, A, M, N, and then O. Communication through this process takes time.
‘No organization can be successful unless it fills and keeps the various positions filled with the right kind of people for the right job.” Elucidate. 
Explain any three types of selection tests.
Employees are the most important resource for an organization. No organization can achieve success unless it does not have the competent workforce. But only the workforce is not enough. The success of an organization also depends upon the right person on the right job. Every position in an organization demands a specialized skill and if this skill is not accompanied by the employee who has been working on that position it will hurt it. Therefore it is said that ‘No organization can be successful unless it fills and keeps the various positions filled with the right kind of people for the right job.
Long Answer Type Questions (3 x 4 = 12)
A company wants to modify its existing product in the market due to decreasing sales. You can imagine any product about which you are familiar. What decisions/steps should each level of management take to give effect to this decision? 
Management is considered to be both an art and science. Explain.
All the three levels of management will work towards the modification of the product in order to increase the sale of the product.
The top level management will perform the following functions:
- Top level management will take care the organizational objectives and try to establish coordination among various departments of the organization.
- Top level management will ensure the contribution of each and every employee to achieve the organizational objectives.
- Top level management will continuously observe the proper functioning of their policies so that if any problem is found, it could be solved.
The middle level management will perform the following functions:
- Middle level management will try to achieve the objectives framed by the top level management.
- It should ensure the proper functioning of the policies framed by the top level management.
- It will try to establish proper coordination with other levels of management.
The lower level management will perform the following functions:
- It will try to achieve the objectives set by the middle level management in an effective and efficient way.
- It will try to establish coordination with other levels of management.
- It will try maintain quality in production and will ensure quality output.
Discuss the following techniques of Scientific Work Study:
(a) Time Study
(b) Motion Study
(c) Fatigue Study
(d) Method Study
(e) Simplification and standardisation of work. 
Explain the concept of ‘functional foremanship’ and ‘mental revolution’ in scientific management as enunciated by ‘Taylor’.
(a) Time Study: Time study is used to determine the standard time taken to conduct a well-defined task. For each element of task, different time measuring devices are used. By taking several readings, a standard time is fixed for the entire task. Volume and frequency of the task, the cycle time of the operation and time measurement costs are various factors on which the selection of the method of time study depends upon. Time study aims at deciding the number of workers to be employed; forming appropriate incentive schemes and calculating labour costs.
(b) 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.
(c) Fatigue Study: If a worker does not rest while working, he is bound feel physically and mentally tired. Intervals of rest help a person to regain his stamina and work again with the same capacity, which eventually results in increased productivity. Fatigue study aims at deciding the amount and frequency of rest intervals in fulfilling a task. For example, normally in a factory, work is conducted in three shifts of eight hours each. In every shift, a worker should be provided some rest interval to take her/his lunch etc. If the work involves heavy manual labour, then small pauses should be frequently provided to the worker so that he may regain his energy level for maximum contribution.
(d) Method Study: To identify one best way of doing the job is the objective (i) 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.
Write the four different financial and non-financial incentives used to motivate employees of a company. 
Define motivation. How does it improve efficiency and facilitate the accomplishment of organizational goals?
Different ‘Financial Incentives’ may be as follows:
(i) Pay and allowances:
Salary is the basic monetary incentive for every worker. It includes basic pay, dearness allowance and several other allowances. Salary system consists of some increments in the pay every year and increase in allowances from time to time. In some business organizations, pay hike and increments may even be linked to performance.
(ii) Productivity linked wage incentives:
Several wage incentive plans aim at linking payment of wages to increase in productivity at individual as well as on group level.
Bonus refers to an incentive which is offered over and above the wages/salary to the workers.
(iv) Profit Sharing:
Profit sharing aims at providing a share to the workers in the profits of the organization. This helps to motivate the employees to improve their performance and contribute to increasing the profits of the organization.
Different ‘Non-Financial Incentives’ may be as follows:
In context to organization, status refers to the ranking of positions in an organisation. The authority, rewards, recognition, responsibility, perquisites and prestige of job indicate the status given to an individual holding a managerial position. Psychological, social and esteem needs of an employee are satisfied by status given to his job.
(ii) Organisational Environment:
Organisational environment or climate throws light on the characteristics which describe an organization and distinguish it from other organizations. These characteristics influence the behavior of the employees in the organization. Individual autonomy, reward orientation, consideration to employees’ risk-tasking, etc., are a few of these characteristics. Abetter organizational climate can be developed if the managers take positive measures in context to these aspects.
(iii) Opportunity of Advancement in Career:
Every person has the desire to grow to the higher level in the organization. Managers should provide ample opportunities to the employees to improve their skills and be promoted to higher-level positions. The correct skill development programs and a sound promotion policy may help the employees to obtain promotions. Promotion works as a tonic and encourages the employees to exhibit improved performance by realizing their complete potential.
(iv) Job Enrichment:
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.