Class 12 Business Studies Sample Paper Term 1 With Solutions Set A

Please refer to Class 12 Business Studies Sample Paper Term 1 With Solutions Set A below. These Class 12 Business Studies Sample Papers will help you to get more understanding of the type of questions expected in the upcoming exams. All sample guess papers for Business Studies Class 12 have been designed as per the latest examination pattern issued by CBSE. Please practice all Term 1 CBSE Sample Papers for Business Studies in Standard 12.

Sample Paper Term 1 Class 12 Business Studies With Solutions Set A

Section A

1. Successful organisations do not achieve their goals by chance but by following a ……… called ‘management’.
(a) process
(b) function
(c) method
(d) system

2. Planning helps in maintaining ……… between different divisions, departments and individuals.
(a) coordination
(b) cooperation
(c) flexibility
(d) silence

3. Which of the following is the component of product mix?
(a) Product cost
(b) Labelling
(c) Competition
(d) Demand

4. Planning, organising, staffing, directing and controlling are performed by all the managers all the time. Sometimes they are doing planning, then staffing or organising etc. Which characteristics of management does it signifies?
(a) Management of work
(b) Management is pervasive
(c) Management is a continuous process
(d) Goal oriented

5. Gang plank permits direct communication between ……… .
(a) employees working at same level but in different departments
(b) any employee irrespective of its level
(c) employees of same department only
(d) None of the above

6. ‘‘Buy goods worth ₹ 2,000 and get a holiday package worth ₹ 1,000 free.’’Which sales promotion activity is mentioned in the given statement?
(a) Product combination
(b) Usable benefit
(c) Quantity gift
(d) Rebate

7. Successful management ensures that
(a) goals are achieved with least cost.
(b) timely achievement of goals.
(c) Both (a) and (b)
(d) None of these

8. For the following two statements choose the correct option.
Statement I Societal concept emphasis on customer satisfaction with social welfare.
Statement II Product concept emphasis on aggressive selling.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect

9. Effective ……… allows the managers to reduce their workload by assigning routine jobs to their subordinates.
(a) decentralisation
(b) delegation
(c) centralisation
(d) management

10. Employees become blind followers of plan as stated by superiors, so planning ……… .
(a) leads to improved decision-making
(b) leads to reduced creativity
(c) leads to rigidity
(d) leads to guarantee to success

11. Which of the following is not an element of delegation?
(a) Accountability
(b) Responsibility
(c) Authority
(d) Entrustment of task

12. All the managerial functions are performed within the framework of the plans drawn.
Identify the related feature of planning.
(a) Planning is futuristic
(b) Planning is primary function of a manager
(c) Planning is mental exercise
(d) Planning is pervasive

13. While the product ……… sets the lower limit of the price, the utility provided by the product sets the upper limit of price, which a buyer would be prepared to pay.
(a) profit margin
(b) cost
(c) Both (a) and (b)
(d) None of these

14. Swachh Bharat Abhiyan started by BJP government is a part of ……… environment.
(a) legal
(b) social
(c) political
(d) economic

15. In order to inform and persuade the prospective consumers about its range of products, a start up business decided to use non-personal form of communication. Identify the element of promotion mix which has been described in the given case.
(a) Personal selling
(b) Public relation
(c) Advertising
(d) Sales promotion

16. ……… fills the gap between where we are and where we want to be. Identify the function.
(a) Controlling
(b) Organising
(c) Planning
(d) Directing

17. Till six months back, Roar Limited was the only company selling solar heating bags, but now with the entry of three other companies offering the same product, the market scenario has changed. Consequently, Roar Limited has decided to reduce the prices of a product by 5%. Identify the related factor affecting the pricing decision of the company.
(a) The utility and demand
(b) Product cost
(c) Extent of competition in the market
(d) None of the above

18. ……… refers to negative and unfavourable external factors that are likely to create hurdles for a firm.
(a) Opportunities
(b) Warning
(c) Threats
(d) None of these

19. The principle of ……… will minimise the need for using penalties.
(a) espirit de corps
(b) equity
(c) initiative
(d) discipline

20. Under ……… function of management, the relationship between different posts (positions) is explained.
(a) planning
(b) directing
(c) organising
(d) controlling

21. The packaging of the room freshners is done in accordance with it’s specific fragnance like purple colour is used for lavender, yellow for lime, pink for rose and so on.
Identify the related point of importance of packaging.
(a) Product identification
(b) Product protection
(c) Facilitating use of the product
(d) All of these

22. The growing awareness about healthcare has led to an increase in the demand for healthcare products and services in the country. Identify the feature of business environment being described in the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
(d) Interrelatedness

23. In which situation, the functional structure happens to be appropriate?
(a) Where the number of major products is more than one
(b) Where the size of the organisation is quite large
(c) Both (a) and (b)
(d) Where primarily only one product is sold

24. “Amanager should have the right to punish a subordinate for wilfully not obeying a legitimate order but only after sufficient opportunity has been given to a subordinate for presenting his case.” Which managerial principle has been highlighted in aforesaid situation?
(a) Authority and responsibility
(b) Unity of direction
(c) Initiative
(d) Discipline

Section B

25. As a result of major government initiatives, more and more people are going ‘green’. In order to keep in line with the trend, ‘Clap away’ a carpet cleaning company has advertised that they only use natural cleaners that come from renewable resources and that all their service vehicles are hybrid vehicles that use both gas and electricity.
Identify one of the points related to the importance of business environment and its understanding by managers which is being highlighted in the above case.
(a) It helps in assisting in planning and policy formulation
(b) It helps in coping with rapid changes
(c) It helps in improving performance
(d) It enables the firm to identify opportunities and getting the first mover advantage

26. Aman is a very hard working manager. After working for the implementation of his well chalked out plan, he from the start of June, decides to see in what ways and up to what accuracy has his plan been implemented?
Which step of the planning process will be followed by Aman from the starting of June?
(a) Setting objectives
(b) Follow up
(c) Implementation
(d) Developing premises

27. Super Star Ltd entered into the market with coloured televisions and have now introduced products like audio systems, air-conditioners, washing machines etc. The company is not only offering the products but also handling complaints and offering after sales services. Identify the element of marketing mix discussed here.
(a) Product
(b) Place
(c) Price
(d) Promotion

28. Assertion (A) Demand for sarees may be fairly high in India whereas it may be almost non-existent in France.
Reason (R) Business environment consists of numerous inter-related and dynamic conditions or forces which arise from different sources.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is correct, but Reason (R) is incorrect
(c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(d) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)

29. Chief Marketing Officer and Managing Director forms the part of ……… level management.
(a) middle
(b) operational
(c) top
(d) None of these

30. ……… refers to short-term incentives which are designed to encourage the buyers to make immediate purchase of a product.
(a) Advertising
(b) Sales promotion
(c) Personal selling
(d) Public relation

31. Taste India is a cafe which is opened just 1 year ago. From 1 year, it is not having enough good sales. There is not much crowd of customers. It is becoming difficult to cover up the costs and salaries and other expenses to run the cafe. Mr. Aniket, the owner of cafe is worried about the condition and didn’t want to close his cafe as it his dream project. He discussed this problem with his close friend who suggested him to appoint Ms. Suman as his manager. Ms. Suman after appointment, as manager and analysed all the situation and then asked Mr. Aniket to make some changes in the menu, cafe interior and introduce some new dishes in market which would suit customer’s taste according to present trend.
Which characteristic of management Ms. Suman has followed?
(a) Management is pervasive
(b) Management of work
(c) Management of operations
(d) Management is dynamic function

32. Manmeet has joined as a Production head in an automobile company. He always divides the work into small and manageable activities and also groups the activities of similar nature together. Identify the related step in organising process being mentioned in the above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships

33. The application of the principles of management has to be changed as per the requirements of the prevailing situation at a particular point of time. Which feature of the principles of management is being described in the given statement?
(a) Contingent
(b) Mainly behavioural
(c) Cause and effect relationship
(d) General guidelines

34. ……… is known as the extended form of delegation.
(a) Authority
(b) Responsibility
(c) Accountability
(d) Decentralisation

35. Raj Malhotra was working as a general manager in a automobile company and was in charge of running the day-to-day business activities of the company. At which level of management was he working?
(a) Middle level
(b) Top level
(c) Supervisory level
(d) None of these

36. Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell only for cash. In 2015, for the first time company’s number one position in the industry has been threatened because other companies started selling rice on credit also. But the managers of Super Fine Rice Ltd continued to rely on it’s previously tried and tested successful plans which didn’t work because the environment is not static.
This led to decline in sales of Super Fine Rice Ltd.
The above situation is indicating two ‘limitations of planning’which led to decline in it sales. Identify one of them.
(a) Planning creates rigidity
(b) Planning reduces creativity
(c) Planning involves huge costs
(d) Planning does not guarantee success

37. Assertion (A) In an organisation, coordination is required so that production and sales department can work hand in hand.
Reason (R) Coordination integrates group efforts.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is correct, but Reason (R) is incorrect
(c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(d) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)

38. Neha runs a Fashion Boutique in posh locality in Delhi. At the time of fixing of the price for each costume, she takes into consideration the money spent on the fabric, stitching and other accessories used in the costume. Identify the factor affecting pricing decision being described in the above case.
(a) The utility and demand
(b) Product cost
(c) Extent of competition in the market
(d) Pricing objectives

39. Rohan works as a production manager in Global Enterprises Limited. He has been given the task of getting 1,000 units of hand woven table mats manufactured at the cost f ₹ 150 per unit within 10 days. In order to be acknowledged as an effective manager, he must ensure that
(a) the cost of production does not exceed `150 per unit.
(b) the work is completed within 10 days even at higher cost per unit.
(c) the cost of production is less than `150 per unit.
(d) All of the above

40. An organisation PQR Ltd, helps in providing jobs to unemployed people and utilise resources to maximum possible advantage. Which objective of management is used here?
(a) Organisational objective
(b) Personal objective
(c) Social objective
(d) Social and organisational objective

41. For the following two statements choose the correct option.
Statement I Planning is pre-requisite for controlling.
Statement II Planning does not look into the future.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect

42. ……… is the technique in which each worker is supervised by eight supervisors.
(a) Functional foremanship
(b) Unity of action
(c) Centralisation
(d) Simplification of work

43. Assertion (A) Sales promotion is a very costly mode of communication.
Reason (R) Because of its wide reach, the overall cost gets spread over numerous communication links established, hence per unit cost of reach comes low.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is correct, but Reason (R) is incorrect
(c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
(d) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A)

44. Ramarjuna joins an IT firm as a system analyst after completing his masters in Computer Science. As the nature of his work demands, he has to work in very close coordination with all the departmental heads in the firm, very soon Ramarjuna realised that each departmental head has own individual style of working. They differ greatly in their day-to-day approach to work. They tend to deal with a given situation, an issue or a problem through a combination of their own experience, creativity, imagination, initiative and innovation.
In the context of the above case, identify the nature of management highlighted in the above case.
(a) Management as art
(b) Management as science
(c) Management as profession
(d) None of these

45. Amanager is required to make certain ……… about the future which may be in the form of forecast.
(a) plans
(b) assumptions
(c) standards
(d) rules

46. For the following two statements choose the correct option.
Statement I Management principles are derived after observation and experimentation when certain conditions are present.
Statement II Principles of management are behavioural in nature and these can be applied to human beings only.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect

47. Varun expressed his desire to buy an expensive mobile phone on his birthday as he wanted to show off to his friends. Identify the type of product utility being described in the given case.
(a) Functional utility
(b) Psychological utility
(c) Social utility
(d) All of these

48. ‘Artistic Art Gallery’ is a big company which produces the paintings showing modern art and such like other material. Once, the sales department of the company received big orders for preparing some special kind of material. But this information was not delivered in time to the production department. The production department continued its production on the basis of its experience in the years gone by. Thus, the necessary activities of the company could not be taken up and there was a big heap of unnecessary production. As a result, the company had to suffer a big loss.
Which particular point of the importance of planning did the company fail to avail of?
Identify on the basis of the event described above.
(a) Planning provides direction
(b) Planning reduces the risk of uncertainty
(c) Planning reduces overlapping and wasteful activities
(d) Planning promotes innovative ideas

Section C

Direction : – Read the following case study and answer question number 49-54 on the basis of the same.
Mr. Samarth is working on the post of General Manager of ‘Samarth Medicare Private Limited’.
He has completed the first function of management, i.e., planning of his company.
Now he is preparing for the other function of management, i.e., organising. Mr Samarth built a team of specialists for this work. The team, first of all, prepared a detailed list of the different activities to be done in the company for the completion of plans. While preparing this list, the care was taken that neither any activity should be left undone nor should there be the repetition of any activity.
The members of the team thoroughly studied the activities included in the list prepared. After studying the activities, the activities of similar nature were put together, so that they should be completed under the supervision of the same manager. For example, advertisements and sale were the activities of similar nature. The responsibility of completing these activities was handed over to the Marketing Manager.
After this, the activities to be done on different posts were defined by the team. In other words, it was clarified which activities would be performed by a particular department and who would complete them.
At the time of work distribution, a special care was taken to assign the right work/job to the right person. Besides, the team of specialists also settled who would get orders from whom and to whom he would be answerable.

49. Which function of management is highlighted in the above case?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

50. ‘‘A detailed list of the different activities to be done in the company was prepared by the team of specialists’’. Which particular stage of the organising process is indicated by this?
(a) First
(b) Second
(c) Third
(d) Fourth

51. ‘‘Receiving orders and being answerable was clarified by the team of specialists’’. What does this action of the team suggest regarding the organising process?
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relations

52. ‘‘At the time of distribution of work, it was made certain that the right person should be given the right work’’. To which stage of ‘organising process’ is this statement related?
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relations

53. ‘‘All the activities of similar nature were put together by the team, so that they should be completed under the supervision of the same person.’’Which of the stages of ‘organising process’ is indicated by this action of the team?
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relations

54. Which importance of organising highlighted in the given lines, “it was clarified which activities would be performed by a particular department and who would complete them”?
(a) Benefit of specialisation
(b) Clarity in working relationship
(c) Effective administration
(d) Optimum utilisation of resources

55. India’s population is expected to grow under 0.5 per cent during 2031-41 due to decline in fertility rate and increase in life expectancy. These changes in India’s demography will also have implications such as the proportion of elementary school-going children will witness significant declines, lack of hospital beds and increase in retirement age.
The related feature of business environment being described in the above lines is
(a) totality of external forces
(b) dynamic nature
(c) interrelatedness
(d) relativity

56. Aarohi found a worm crawling out of a newly opened tetra pack of milk manufactured
by a reputed company, Milk Ltd. She went back to the shopkeeper from whom the pack was purchased who directed her to call up the customer care centre. When all her efforts fell free, she went to a consumer activist group to seek advice. The group decided to help Aarohi and take measures to impose restrictions on the sales of the firm’s products of the particular batch and urge customers to refrain from buying the products of the company. Milk Ltd. lost its image in the market. The CEO gave the responsibility of bringing back the lost image of the company to the manager. Identify the concept of marketing management which will help the manager to get the firm to get out of the crisis.
(a) Public relations
(b) Sales promotion
(c) Advertising
(d) None of these

57. Agile Limited has launched a new range of air conditioners in order to add value to the usability of the product. The new range of air conditioners have an inbuilt air purifier and are available in attractive colours. Identify the type of marketing philosophy being described in the above lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

58. Sita Ram is working as the manager of ‘Ram Foods Ltd’. The general goal of establishing his company was to become the leader of ‘Food Industry’. Sita Ram determined the activities and plans for the realisation of the general goal. In the plans themselves, he determined the specific goals also. He knew it very well that the planning done by him was of no significance if he failed to contribute to the realisation of pre-determined organisational objectives. This was the reason that he did everything with full alertness. Identify the feature of planning described in the above discussion.
(a) Planning focuses on achieving objectives
(b) Planning is a primary function of management
(c) Planning is pervasive
(d) Planning is continuous

59. According to Taylor, “even a small production activity like loading figures of iron into boxes can be scientifically planned and managed. This can result in tremendous savings of human energy as well as wastage of time and materials.” Identify the related principle of scientific management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/her greatest efficiency and prosperity
(d) None of the above

60. A scientist working in a factory for the betterment of the operational aspect studied all the steps involved in the manufacturing of the product. He very attentively noticed all sorts of movements to arrive at a simpler way of doing all the activities possible. With his hard work he was able to bring down the number of activities for the manufacturing of the final product from 34 to 22. This work was able to bring down the labour charges and decrease the total time of production. Thus he gave the organisation an added advantage.
Which type of scientific technique is discussed here?
(a) Motion study
(b) Functional foremanship
(c) Method study
(d) Fatigue study