RBSE 12th Business Studiesn Model Paper Set 4 with Answers in English

Students must start practicing the questions from RBSE 12th Business Studies Model Paper Set 4 with Answers in English Medium provided here.

RBSE Class 12 Business Studies Model Paper Set 4 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 publish & magazine name under the title “Upbhokta Jagran” is an example of which right of consumer? [1]
(a) Right to be informed
(b) Right to safety
(c) Right to be heard
(d) Right to consumer education
Answer:
(d) Right to consumer education

(ii) Coconut Crackers Limited, A firecrackers manufacturing company, launched some new products on the eve of Deepavali, which attracted many customers. To meet the increased demand, the company employed children from nearby villages and in the urgency of work, they ignored to specify safety warnings on the packets of crackers. Identify which consumer right is being ignored here. [1]
(a) Right to choose
(b) Right to be heard
(c) Right to be informed
(d) Right to seek redressal
Answer:
(c) Right to be informed

(iii) Packaging helps the marketers in . [1]
(a) Raising standards of health and sanitation
(b) Innovational opportunity
(c) Product differentiation
(d) All of the above ,
Answer:
(d) All of the above ,

(iv) Mr. Rohit wants to purchase a TV for his family. For this, he visited Umang Electronics. He got confuse to buy which model. Which promotional tool brought him to the shop and which promotional tool is required now to remove his confusion? .1
(a) Advertising, personal selling
(b) Personal selling, advertising
(c) Sales promotion, personal selling
(d) Public relations, advertising
Answer:
(a) Advertising, personal selling

(v) Which of the following is not performed by channels of distribution? [1]
(a) Sorting
(b) Assorting
(c) Quality improvement
(d) Risk taking
Answer:
(c) Quality improvement

(vi) Primary and secondary markets develop simultaneously because they [1]
(a) are complement to each other
(b) are independent of each other ,
(c) control each other
(d) fimction independently
Answer:
(a) are complement to each other

(vii) Secondary market is in the form of [1]
(a) Stock exchange
(b) Bombay Market
(c) New issue market
(d) Commercial exchange
Answer:
(a) Stock exchange

(viii) Which of these represent the end point of planning? [1]
(a) Policies
(b) Methods
(c) Rules
(d) Objectives
Answer:
(d) Objectives

(ix) Which of the following is not a feature of planning? [1]
(a) Planning establishes standards for controlling.
(b) Planning is futuristic.
(c) Planning focuses on achieving objectives.
(d) Planning is pervasive.
Answer:
(a) Planning establishes standards for controlling.

(x) The importance of staffing is on a rise today because of [1]
(a) Increase in business activities
(b) Rapid technological advancement
(c) Cornplexities in human behaviour
(d) All of these
Answer:
(d) All of these

(xi) Web publishing is which source of recruitment? [1]
(a) Campus
(b) External
(c) Internal
(d) All of these
Answer:
(b) External

(xii) Mrs. Shweta wants to buy a gold ring. As an aware customer, how can she be sure about the quality of gold ring she is going to buy? [1]
(a) She should check for Hallmark on the jewellery
(b) She should check for Agmark on the jewellery
(c) She should check for FPO mark
(d) She can ask directly from the jeweller
Answer:
(a) She should check for Hallmark on the jewellery

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

(i) F. W. Taylor was a………………….by profession. [1]
Answer:
mechanical engineer

(ii) CPA 2019 contains provisions relating to consumers and…….. [1]
Answer:
rights, responsibilities

(iii) Management is not considered to be good if it is both …………. nnd-ineffective. [1]
Answer:
inefficient

(iv) To feel hunger is a ………….. [1]
Answer:
need

(v) ……… is the most relevant source of recruiting managerial personnel. [1]
Answer:
Advertisement

(vi) …….. is the type of plan which provides broad guidelines of an organisation’s business. [1]
Answer:
Strategy

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

(i) State which act protects and promotes the interests of consumers in India.[1]
Answer:
Consumer Protection Act, 2019.

(ii) Define the term market in modern sense. [1]
Answer:
(As per the modem view, market refers to a group of the real and potential buyers of products and service. For example, a car of a new model is ready for sale; all those people who are interested in purchasing this car will consider the sum of its values. This whole process is termed as market as per modem view.

(iii) State any two internal sources of recruitment. [1]
Answer:
(i) Transfer,
(ii) Promotion.

(iv) State any two external sources of recruitment. [1]
Answer:
(i) Direct recruitment.
(ii) Employment exchange

(v) State any one characteristic of directing. [1]
Answer:
Directing occurs at every level of management.

(vi) What does decoding refer to in the process of communication? [1]
Answer:
It is the process which includes converting the encoded symbols of the gender.

(vii) Why is motivation called a complex process ? [1]
Answer:
Motivation is a complex process as individuals are heterogeneous in their expectations, perceptions and reactions. Different people have to be motivated differently, as any one type of motivation cannot have a uniform effect on all the members,

(viii) Define supervision. [1]
Answer:
Supervision means instructing, guiding and monitoring the subordinates to ensure that they perform their jobs in-accordance with the plans and instructions.

(ix) What refers to the process of influencing the behaviour of people by making them strive voluntarily towards achievement of organisational objectives? [1]
Answer:
Leadership.

(x) Give the meaning of ’objective’ as a type of plan. [1]
Answer:
These are defined as ends which the management seeks to achieve by its operations. The objectives are usually set by top management of the organisation and they focus on broad and general issues. They define the future state of affairs which the organisation strives to realise.

(xi) Explain how planning reduces the risks of uncertainties. [1]
Answer:
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. Although changes or events cannot be eliminated, yet they can be anticipated and development of managerial responses to them can be done.

(xii) What is meant by ‘Rule’?
Answer:
A Rule is a specific statement that informs what is to be done and not to be done. They do not allow for any flexibility or discretion.

Section- (B)

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

Questions 4.
What do you mean by management? [2]
Answer:
According to Kreitner, “Management is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.”

Questions 5.
Explain ‘unity of command’ and ‘equity’ as principles of general management. [2]
Answer:
Unity of command:
The principle of unity of command states that each employee in an organisation should . receive orders from one superior only and he should be responsible to only one superior. It prevents confusion regarding tasks to be done

Equity:
Equity states that there should be no discrimination against anyone on account of sex, religion, language, caste, belief, nationality etc. It emphasises kindliness and justice in the behaviour of managers towards the workers to ensure loyalty and devotion.

Questions 6.
Can planning work in a. changing environment? Give a reason to justify your Answer:wer.
Answer:
No, planning cannot work in a changing environment because business environment is dynamic and never constant, and it consists of various economic, political, physical, legal and social dimensions. A business organisation has to constantly adapt itself to these changes and it becomes hard to accurately assess future trends in the environment if economic policies are continuously modified or political conditions in the country are not stable or in case if there is a natural disaster. Competition in the market can also make financial plans go wasted, leading to revision of sales targets and accordingly, modification of cash budgets also, as they are based on sales figures. Planning cannot foresee each and everything and hence there may be obstacles and hindrances to effective planning.

Questions 7.
An organisation provides security services. It requires sueh candidates who are reliable and don’t leak out the secrets of their clients. What step should be incorporated in the selection process? [2]
Answer:
The company should use ’personality test’ in order to judge the reliability of the candidates. The personality test will provide a deep insight about the attitude and the reliability level of the candidate, which is a requisite of the organisation. The applicants with most stable personality should be provided with the job offer.

Questions 8.
Explain any two principles of Directing. [2]
Answer:
The two principles of directing are as follows:
(i) Maximum individual contribution:
This principle insists that directing techniques must help every employee in the organisation to realise his maximum potential for the accomplishment of organisational objectives. It should bring out untapped energies of people to enhance the efficiency of the organisation.

(ii) Unity of Command:
This principle emphasises that every subordinate in the organisation should receive instructions from one superior only. If instructions are received from more than one person, it creates confusion, conflict and disorder in the organisation. Following this principle ensures effective direction.

Questions 9.
Explain the concept of management.
Answer:
Management is a very popular term used broadly for all types of activities. This term is especially used for taking charge of various activities in any organisation. Management is an activity which is required wherever there is a group of people working in an enterprise. People in organisations perform different tasks, but they all work towards the achievement of a common objective. The aim of management is to channelise their efforts towards achieving a common objective – a goal. Management ensures that tasks are completed and goals are achieved (i,e., effectiveness) with the least amount of resources at a minimum cost (i.e., efficiency). Thus, management has been defined as a process of getting things done with the aim of achieving goals effectively and efficiently.

Questions 10.
Explain any two points of importance of consumer protection from the point to . customer. [2]
Answer:
(i) Consumer Ignorance :
Generally, consumers are unaware , about rights and reliefs available to them. With the idea of consumer protection, consumers are educated about various rights and reliefs available and how to approach redressal agencies. So, ft spreads awareness.

(ii) Unorganized Consumers :
Consu mers are unorganized because of which they are not able to raise then voices against exploitation. Consumer protection encourages consumers to be organised by way of consumer organisations which would take care of their interests.

Questions 11.
Mention any four responsibilities of a consumer which should be kept in mind while purchasing goods. [2]
Answer:
(i) Be aware about all similar products and services so that wise judgments can be made,

(ii) Buy standardised products that adhere to quality assurance.

For example :
ISI mark on electrical goods, FPO mark on food products, Halmark on jewellery, Agmark on agricultural products and livestock etc.

(iii) Learn about associated risks with goods and services and follow manufacturer’s instructions, safety .guidelines to use the products safely,

(iv) Read labels carefully in order to have complete information about price, quantity, expiry and manufacturing date etc.

Questions 12.
Define advertising. What are its main features? Explain. [2]
Answer:
The most commonly used tool of promotion is advertising. It is an impersonal form of communication. Advertising refers to paid and non-personal form of communication by the marketer or sponsor to promote their goods or services. Most commonly used modes of advertising are Ads in Newspapers and Magazines, Ads on television and Radio, etc.

Features of advertising- Some of the distinguishing features of advertising are:
(i) Paid form of communication :
Advertising is a paid form of communication, as the advertiser has to pay for using advertising media or for the space or time used to communicate message to the audience.

(ii) Impersonal :
Advertising is a non-personal form of communication as there is no direct face-to-face interaction between the potential buyer and the advertiser.

(iii) Identified sponsor :
Advertising is undertaken by some sponsor, who may be an individual or a firm who pays for it. The name of sponsor is always mentioned and recognizable.

Questions 13.
Discuss the role of sales promotion’ as an element of promotion mix. [2]
Answer:
Sales promotions are incentives that are offered to encourage sales of a product. Some of the commonly used sales promotion techniques are – gifts, discount, free samples, rebate, lucky draw etc. These activities are in addition to other promotional activities taken by the company (like direct selling and advertising) and add synergy in total promotional efforts. Sales promotion techniques drive purchase and promote sales. Such activities are beneficial during a new product launch.

Questions 14.
State the objectives of NSE.
Answer:
NSE was set up with the following objectives:
(a) Establishing a nationwide trading facility for all types of securities.
(b) Ensuring equal access to investors all over the country through an appropriate communication network.
(c) Providing a fair, efficient and transparent securities market using electronic trading system.
(d) Enabling shorter settlement cycles and book entry settlements.
(e) Meeting international benchmarks and standards.

Questions 15.
Name the document prepared in the process of online trading of securities that is legally enforceable and helps to settle disputes/claims between the investor and the broker.
Answer:
The broker issues a ‘Contract Note’ within 24 hours of the transaction being completed. The number of shares purchased or sold, the price, the date and time of the transaction, and the brokerage fees are all listed on this note. This is a crucial document as it is legally binding and it aids in the resolution of conflicts or claims between the investor and the broker. A Unique Order Code number is assigned to each transaction by the stock exchange and is printed on the contract note.

Questions 16.
Define briefly nature of Principles of Management, (any four)
Answer:

(i) Universal applicability:
The principles act as general guidelines to action, but they do not provide tailor-made, immediate and clear-cut solutions to various managerial problems.

(ii) General guidelines: These 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.

(iii) Formed by practice and experimentation:
Experience and collective wisdom of managers as well as experimentation are the basis of formation of these principles.

(iv) Flexibility:
The principles of management are not rigid prescriptions, rather they are flexible and these principles provide enough discretion to the managers so that they can modify them as per the demand of a particular situation.

Section – (C)

Short Answer Type Questions-II (4 x 3 = 12)

Questions 17.
Lalita wants to buy shares of Akbar Enterprises, through her broker Kushvinder. She has a Demat Account and a bank account for cash trAnswer:actions in the securities market. Discuss the subsequent steps involved in the screen-based trading for buying and selling of securities in this case. [3]
Or
State any three development functions of Securities and Exchange Board of India.
Answer:
The following steps are followed in the screen-based trading for buying and selling of securities:

(i) Before buying or selling any security, an investor must first contact a registered broker or sub-broker and reach an agreement with him. Before making an order to buy or sell shares, the investor must sign a broker-client agreement and a client registration form.

(ii) To hold and move securities in demat form, the investor must open a ‘demat’ or ‘beneficial owner’ (BO) account with a depository participant (DP). He’ll also need to open a bank account for securities market cash transactions.

(iii) After that, the investor places a order to buy or sell the security with the broker. The number of shares to be purchased or sold, as well as the price at which they should be purchased or sold, must be stated clearly. The broker would then complete the transaction at the above mentioned price or the best available price. The broker gives the investor an order confirmation card.

(iv) The broker then will now go on-line and connect to the main stock exchange and match the share and best price available.

(v) When the shares can be purchased or sold at the specified price, the broker’s terminal will be notified, and the order will be executed electronically. The trader will receive a trade confirmation slip from the broker.

(vi) The broker issues a Contract Note within 24 hours of the transaction being completed. The number of shares purchased or sold, the price, the date and time of the transaction, and the brokerage fees are all listed on this note.

(vii) The investor must either deliver the shares that were sold or pay cash for the shares that were purchased. This should be done as soon as the contract notice is received or before the day on which the broker must make payment or send shares to the exchange. This is referred to as the “pay-in day.”

(viii) Cash is paid or securities are delivered on pay-in day. Since 1st April 2003, the settlement cycle is on T+2 day on a rolling settlement basis.

(ix) On the second day, the exchange would either deliver the stock or pay the other broker. This is referred to as the pay-out day. Since he has already earned money from the exchange, the broker must compensate the investor within 24 hours of the pay-out day.

(x) Shares in demat form can be sent directly to the investor’s demat account by the broker. The investor must provide his demat account information and order his depository participant to deliver securities to his beneficial owner account directly.

Questions 18.
How does branding help in’creating product differentiation? Does it help in marketing of goods and services? Explain. [3]
Or
Differentiate between products and services.
Answer:
Branding refers to that process through which a distinct identification is given to a product either by giving a name, sign, symbol, term, design or a combination of them to identify the product and differentiate from that with the competitors. Branding helps a firm to distinguish its product from the other competing products available in the market.

For example- Lux, Pears, Lyril etc. all are similar products, but their manufacturers are different. In addition to product differentiation, branding also helps in marketing of goods and services. Following points highlight the importance of branding towards marketing of goods and services.

1.  Branding helps in advertisement of a product and advertisement is only possible if product branding is done. Without branding, a sales manager can give information about a product but cannot increase its sale.
2. Branding helps in creating brand loyalty towards a particular product. A company can use branding for price differential and charge premium prices for products that have a good brand name in the market.
3. Branding helps in launch of new products also. If the brand name of a company becomes famous, the company can launch some of the products in the market quite easily. The new product under an established brand name is likely to be accepted easily and get a quick start.

Questions 19.
Explain briefly ‘discipline’ and ‘scalar chain’ as principles of general management. [3]
Or
Explain ‘harmony not discord’ as a principle and ‘fatigue study’ as a technique of scientific management.
Answer:
Discipline:
According to Fayol, discipline is obedience, application and outward mark of respect. It is the obedience to organisational rules
and employment agreement, which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.

Scalar chain:
It is the chain of superiros ranking from the top to the lowest ranks. The principle of scalar chain suggests that there should be a clear line of authority from top to bottom, linking managers at all levels. The scalar chain serves as the chain of command and also as the chain of communication. Under the chain of command, orders and instructions issued at higher levels flow through intermediate managers before reaching the lower levels.

Questions 20.
What are the advantages of training for the organisation? [3]
Or
I Explain advertisement as an external source of recruitment
Answer:
Benefits of Training for the Organisation
Following are the benefits of training for an organisation:

1. Training refers to systematic learning, and it is always better than hit and trial methods which result into wastage of efforts and money.
2. Training increases the productivity of the employees, both in terms of quantity and quality, resulting into higher profits.
3. Training makes future managers capable of facing challenging situations.
4. Training enhances the morale of the employees, and in addition to this, it also reduces absenteeism and employee turnover.
5. Training^helps in acquiring an effective response to the rapidly- changing technological and economic environment.

Section – (D)

Long Answer Type Questions (3 x 4 = 12)

Questions 21.
Explain the importance of coordination in detail. [4]
Or
“A successful enterprise has to achieve its goals effectively and efficiently.” Explain.
Answer:
As it integrates the efforts of individuals, departments and specialists, coordination is considered to be extremely important. The main reason for coordination is that various departments arid individuals in the organisation are interdependent, i.e. they depend on each other for information and resources to perform their respective day-to-day operations. Hence, managers have to reconcile these differences in approach, timing, effort or interest. Along with this, there is also a need to harmonise individual objectives and organisational objectives. Following is the importance of coordination

(i) Growth in size :
The number of people employed by the organiskion also increases along with growth in the size of an organisation. Marty times, it is hard to integrate their efforts and activities. Variation is found in the habits of work, background, approaches to situations of different individuals and along with this difference is also found in their relationships with others. Hence, it becomes important to ensure that all the individuals work towards the common objectives of the organisation. However, employees may have their own individual objectives also. Therefore, it is essential to harmonise individual objectives and organizational objectives through coordination in order to ensure organizational efficiency.

(ii) Functional differentiation :
Functions of an organization are divided into various departments, divisions and sections. There may be separate departments of finance, production, marketing or human resources in an organization. All these departments have their respective objectives, policies and their personalized style of working. For example, the marketing department’s objective may be to increase sales by 15 per cent by offering discounts and all sorts of rebates.

But, the finance department may not approve of such discounts and rebates as it leads to loss of revenue. As each unit/department is performing activities which are different from others and barriers between departments are becoming more rigid, these kinds of conflicts are visible in various types of organisations. But all departments and individuals are interdependent and they have to depend on each other for information in order to perform their day-to-day functions. , It is essential that the activity of each department focuses on attainment of common organizational objectives. Coordination helps in linking the activities of various departments.

(iii) Specialisation :
A high degree of specialization is the characteristic of most of the modem organisations. The complexities of modern technology and the diversity of tasks to be performed in an organisation gives rise to specialisation. For this, an organisation has to appoint various specialists. Specialists usually believe that they only are qualified to evaluate, judge and decide according to their professional criteria. They do not believe in taking advice or suggestions from other people in matters relating to their area of specialisation. This often results into conflict amongst various specialists as well as other people in the organisation. Therefore, in order to reconcile the differences in approach, interest or opinion of the specialists, some sort of coordination is required by an independent person.

Questions 22.
Explain any four points of significance of principles of management.
Or
Explain principles of Taylor’s scientific management.
Answer:
(i) Providing managers with significant insights into reality:
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. Principles of management principles increase managerial efficiency and enable managers to learn from past mistakes and conserve time by solving repeated problems quickly.

(ii) Optimum utilisation of resources and effective administration:
Every company has limited availability of human and material resources which have to be put to optimum use, i.e., they should be put to use in such a manner that they provide maximum benefit with minimum cost. Principles of management help the managers to foresee the cause and effect relationships of their decisions and actions, so that the wastages associated with a trial-and error approach may be prevented.

(iii) Scientific decisions:
Decisions must be timely, realistic and subject to measurement and evaluation, and in addition to this, they must also be based on facts, thoughtful and justifiable in terms of the intended purposes. These principles of management emphasise logic rather than blind faith and they help in thoughtful decision-making. Managerial decisions taken on the basis of principles of management are based on the objective assessment of the situation and they are free from bias and prejudice.

(iv) Fulfilling social responsibility:
Businesses, especially limited companies, are forced to fulfill their social responsibilities due to increasing awareness among public. Various theories and principles of management have evolved in response to these demands, and in addition to this, the interpretation of the principles also assumes newer and contemporary meanings along with the change in time. For example, the principle of ’equity’ not only includes equality of wages, but it also includes value to the customers, care for the environment, dealings with business associates, etc. under its purview.

Questions 23.
State main measures to improve communication effectiveness. [4]
Or
Explain any four non-financial incentives.
Answer:
Measures to improve communication effectiveness:

1. The manager should clarify the ideas before communicating to the subordinates. The entire problem should be studied in depth, analysed and stated in such a manner that it is clearly conveyed to the subordinates.
2. The manager should adjust his communication according to the needs and understanding level of the subordinates.
3. The manager should consult others before developing a plan for communication. Participation and involvement of subordinates may help to gain ready acceptance and willing co-operation from them.
4. The manager should be aware of the languages, tone and content of the message, so that it does not offend the sentiments of the listeners.
5. The manager should know the interests and needs of the people with whom the communication is being done, so that he/she can convey things of help and value to listeners.
6. The manager should ensure proper feedback by asking questions regarding the message conveyed.
7. The manager should communicate for present as well as future goals Of the enterprise.
8. The manager should do a regular follow up and review of the instructions given to the subordinates.
9. The manager should be a good listener, as patient and attentive listening can solve half of the problems.