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

Please refer to Class 12 Business Studies Sample Paper Term 1 With Solutions Set B 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 B

1. Identify the feature of coordination being highlighted in the given statement “coordination is not a one-time function, it begins at the planning stage and continue till controlling.”
(a) Coordination ensures unity of action
(b) Coordination is an all-pervasive function
(c) Coordination is a continuous process
(d) Coordination is a deliberate function

2. Planning is the ……… function of management.
(a) first
(b) second
(c) third
(d) fourth

3. ……… is the process of giving name, term, symbol or design of a product to identify and differentiate it from competitors.
(a) Labelling
(b) Branding
(c) Packaging
(d) Grading

4. ……… managers do not interact with the work force directly.
(a) Supervisory
(b) Operational
(c) First line
(d) Middle level

5. Which principle of general management advocates that, “Employee turnover should be minimised to maintain organisational efficiency”?
(a) Stability of Personnel
(b) Remuneration of Employees
(c) Equity
(d) Esprit De Corps

6. As the winters were approaching, Dev bought a leather jacket for himself. 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

7. The possibilities of inadequate profits or even losses due to uncertainties are known as ……… .
(a) Business contingencies
(b) Business ventures
(c) Business risks
(d) None of these

8. The decision areas related to managing inventory, storage and warehousing and transportation represent ……… component of marketing mix.
(a) product
(b) price
(c) place
(d) promotion

9. ……… enables a manager to use his time on high priority activities.
(a) Decentralisation
(b) Centralisation
(c) Delegation
(d) None of these

10. Generally, it is thought that planning is related to the planning cycle. It means that a plan is framed, it is implemented and it is followed by another plan and so on. The above statement is related to a feature of planning, identify it.
(a) Planning is continuous
(b) Planning is futuristic
(c) Planning involves decision-making
(d) Planning is pervasive

11. Grouping of activities on the basis of functions is a part of
(a) decentralised organisation
(b) divisional organisation
(c) functional organisation
(d) centralised organisation

12. Organisational plans are drawn up by the ……… .
(a) lower level management
(b) middle level management
(c) Both (a) and (b)
(d) top level management

13. Naina, a 5 year old girl, is feeling hungry and is insisting to eat only pizza and nothing else. Identify the related feature of marketing being highlighted in the given line.
(a) Needs and wants
(b) Creating an offering
(c) Exchange mechanism
(d) None of these

14. “Advertisement of drugs are banned in the country.” Which dimension of business environment is reflected by the above statement?
(a) Legal
(b) Social
(c) Technological
(d) Political

15. For the following two statements, choose the correct option.
Statement I Marketing is merely a business phenomenon or confined only to business organisations.
Statement II For any exchange to take place, each party should be willing to enter into a transaction with each other.
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

16. “Planning is deciding in advance what to do, when to do it, and who is to do it.” This
has been described by
(a) Koontz and O’Donnell
(b) Haimann
(c) Allen
(d) Terry

17. Star Ltd. is a large multinational company and operates in many countries of the world. The company is in the business of Insurance, Health care, Information Technology, Business Process Outsourcing, Computer Education, Security, etc. What is being marketed by the company in the given case?
(a) Setting objectives idea
(b) Service
(c) Place
(d) Information

18. Customers, suppliers, debtors, etc. are the elements of ……… environment.
(a) internal
(b) external
(c) macro
(d) None of these

19. Principles of management are considered as ……… .
(a) readymade solutions to problems
(b) general guidelines
(c) methods and procedures
(d) rules and regulations

20. Which of the following is not the advantage of divisional organisational structure?
(a) Product specialisation helps develop varied skills of divisional head.
(b) It helps in fixation of responsibility in case of poor performance of the division.
(c) It promotes flexibility and initiative because each division functions as an autonomous unit.
(d) It is economical as there is no duplication of activities across products.

21. Which marketing concept states that the firm should undertake aggressive advertising
techniques to convince customers to buy the product?
(a) Production
(b) Product
(c) Selling
(d) Marketing

22. Which of the following best indicates the importance of business environment?
(a) Identification
(b) Improvement in performance
(c) Coping with rapid changes
(d) All of these

23. For delegation to be effective, it is essential that responsibility be accompanied with
necessary ……… .
(a) authority
(b) manpower
(c) incentives
(d) promotions

24. According to Henri Fayol, ‘‘if this principle of general management is violated, authority is undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity

Section B

25. On account of continuing Corona virus, for months together there remained the lockdown. During this period, the people remained confined to their houses. The articles of food and drink which used to be ordered from the market began to be prepared at home. From the ‘YouTube’ and ‘Google’, the home makers learnt to prepare everything at home, which earlier used to be available at the sweet-maker’sshop and  restaurants.
The people realised that every food item prepared at home was more tasty and nutritious than that of the market. Now, the people have become used to it. Even when the lockdown was lifted the people preferred the home-made food and sweets to have.
It so appears that now the consumption habits of people have changed. This habit of the people has affected the market. To which particular dimension of the business environment, is the above stated incident related?
(a) Economic environment
(b) Social environment
(c) Technological environment
(d) Political environment

26. Nishant Arora is working as the production head in the ‘Omitor Ltd.’. He is preparing a plan for production of goods for his department. He is taking the help of company’s objectives and keeping in mind the future technological upgradations as the base of his plan. He is of the view that a good plan can be prepared by learning about the possibilities of future changes and upliftment in technology through the medium of forecast. The plan being prepared by Nishant is very important as it will become the base for other plans of the company. Identify the feature of planning in above event.
(a) Planning is continuous
(b) Planning is futuristic
(c) Planning involves decision-making
(d) Planning is pervasive

27. ……… divides the burden of taking managerial decisions which helps in taking quick and best decisions.
(a) Centralisation
(b) Decentralisation
(c) Both (a) and (b)
(d) None of these

28. Assertion (A) Suppliers affect any business directly but political environment affect it indirectly.
Reason (R) Business environment is a relative term. It differs from country to country and region to region.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is corect, 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. Which of the following is a function of top level management?
(a) Ensuring quality of output
(b) Assigning necessary duties and responsibilities to their departments
(c) Taking responsibility for all the activities of the business and its impact on the society
(d) None of the above

30. ‘‘The question is not whether there should be decentralisation, but decentralisation to what degree.‘’What information regarding decentralisation is given in this statement?
(a) Meaning
(b) Feature
(c) Definition
(d) Importance

31. The manager of the company properly supervises the work and helps in motivating their subordinates and take proper decision for his organisation. Which function of management is followed here?
(a) Directing
(b) Co-ordination
(c) Staffing
(d) Planning

32. In which situation, the divisional 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

33. For the following two statements, choose the correct option.
Statement I Unity of command means one employee getting orders and instructions from one supervisor.
Statement II Functional foremanship is the extension of principle of unity of command.
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

34. Assertion (A) When lower level managers are given freedom to take their own decisions, they learn to depend on their own judgement.
Reason (R) In decentralisation the chances of information getting distorted are high as it goes through long channels.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is corect, 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)

35. In order to survive, an organisation must earn enough ……… to cover ……… .
(a) revenue and cost
(b) cost and revenue
(c) image and cost
(d) cost and imag

36. Sulochna Maliwal is working as the production manager in the ‘Rakshit Medicines Pvt.
Ltd.’ She is to prepare the production budget for the calendar year 1st January, 2020 to 31st December, 2020. While preparing the budget for her department, she considered it proper to mainly keep in view the Corona virus spreading world-wide. Keeping this fact in mind, in the beginning months, in order to face the virus, she gave preference to preparing the necessary material rather than the other items. Due to the planning done in this manner, the company got a big success.
Which particular point of importance of planning do you learn about from 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

37. Assertion (A) Management is multidimensional.
Reason (R) The effect of management is noticeable in an organisation when targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is corect, 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. Span of management refers to
(a) number of managers.
(b) length of term for which a manager is appointed.
(c) number of subordinates under a superior.
(d) number of members in top management.

39. In order to become a lawyer, one has to register himself as a member of Bar Council of India. Which feature of profession is being highlighted?
(a) Specified code of conduct
(b) Restricted entry
(c) Service motive
(d) Professional association

40. Harish, the chairperson of ‘ABC enterprises’ (Non-profit organisation), believes that the objectives of the foundation can be achieved without a proper management system.
Which characteristic of management is overlooked in this case?
(a) Management is multi-dimensional
(b) Management is all pervasive
(c) Management is goal oriented
(d) Management is group activity

41. In order to be effective and successful, planning should be ……… .
(a) flexible
(b) stable
(c) rigid
(d) None of these

42. ……… principle of Taylor suggests that there should be open communication system and there is no need for trade union.
(a) Harmony, not discord
(b) Cooperation, not individualism
(c) Development of workers to their greatest efficiency and prosperity
(d) Science, not rule of thumb

43. The CEO of E-solutions Pvt. Ltd. is of the opinion that decentralisation awards greater autonomy to the lower levels of management as well as divisional or departmental heads. This allows them to function in a manner best suited to their department and fosters a sense of competition amongst the departments. Consequently, with each department doing its best in a bid to outdo the other, the productivity levels increase and the organisation is able to generate more returns which can be used for expansion purposes.
Identify the point of ‘importance of decentralisation’mentioned here.
(a) Quick decision-making
(b) Relief to top management
(c) Facilitates growth
(d) Better control

44. Shyam Private Ltd., a biscuit manufacturing company set the target to produce 700 packets of biscuits per month at the cost of ` 10 per packet. Ajay, a worker worked double shift and produced around 850 packets at the cost of ` 13 rs per packet. Another worker, Vijay mainly focused on cost and handled resources very carefully, so he produced 650 packets at the cost of ` 9 per packet.
On reading the above situation, what quality does the worker Ajay is lacking?
(a) Effectiveness
(b) Efficiency
(c) Both efficiency and effectiveness
(d) None of the above

45. For the following two statements, choose the correct option.
Statement I Planning shows the way to deal with changes and expected events.
Statement II Planning reduces uncertainty.
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

46. Name the technique of Taylor which is the strongest motivator for workers to reach standard performance.
(a) Development of workers to their greatest efficiency and prosperity
(b) Work study
(c) Differential piece wage system
(d) Simplification of work

47. Anita opened her own travel agency, sometime back. She assigned work to her three employees in the following manner, Shreya, you are incharge of air plane, train and bus reservations. Ankit, you will take care of accommodation booking. Sahil, you will keep track of online queries and credit card payment. I want regular reports from the three of you.
Identify the concept of management discussed above.
(a) Delegation
(b) Centralisation
(c) Organisation structure
(d) None of these

48. “Planning helps the management to anticipate the future and prepare for the risks by making necessary provisions”. It indicates one of the merits of planning. Identify it.
(a) Planning promotes innovative ideas
(b) Planning facilitates decision-making
(c) Planning reduces risks of uncertainty
(d) Planning establishes standards for controlling

Section C

Direction : – Read the following case study and answer question number 49-54 on the basis of the same.
‘Ghadi Pvt. Ltd.’ is a detergent powder manufacturing company. The company’s sale speed has been running slow for the last about two years. Recently, the company replaced the present marketing manager by Mr. Ravish Kumar. Mr. Kumar made several efforts to increase the sale, which are as follows
First of all, Mr. Kumar spoke to a well-known T.V. channel and reached an agreement with them to get the company’s product advertised during the course of their so often seen programmes Immediately, the positive result of this effort was visible. Along with it, he prepared a plan to make the customers, particularly housewives, aware of the product. To do so, he organised a team of 50 members.
The team’s job was to make the company’s product available at the customers’ houses to acquaint the customers with the qualities of the product and removing their doubts there and then. This effort of Mr. Kumar proved to be quite successful.
Mr. Kumar felt very much encouraged on finding his efforts proving to be successful. Besides the above efforts, he followed one more formula. Under this formula, a small packet of 100 gms powder was announced to be given freely along with a big packet of one kilogram of detergent powder. This scheme of the company was also very much welcomed by the customers.
In no time, the company’s sale increased many times and it became a leader in detergent udyog.
The company’s success, attracted the attention of the media to itself. On the story of the company’s success an interview of its C.E.O. was published in a well-known newspaper. Every probable customer who read this interview became the company’s actual customer.

49. Which marketing mix discussed in above case?
(a) Product
(b) Price
(c) Place
(d) Promotion

50. First of all Mr. Ravish Kumar, followed the advertisement as a promotional tool.
Identify the feature of it.
(a) Impersonal presentation
(b) Personal form
(c) Oral conversation
(d) All of these

51. Mr. Kumar built a team. The team’s job was to make the company’s product reach the houses, to make the customers aware of its qualities and to remove their doubts there and then. Identify this system of promoting sales.
(a) Advertising
(b) Personal selling
(c) Sales promotion
(d) Publicity

52. Mr. Kumar announced to give a small packet of 100 gms free along with a big packet of one kilogram of detergent powder. Identify this method of promotion.
(a) Sales promotion
(b) Personal selling
(c) Sales publicity
(d) Advertising

53. The interview of the company’s C.E.O. was published in a newspaper. Identify the promotion method out of the following.
(a) Personal selling
(b) Advertising
(c) Sales promotion
(d) None of these

54. “Along with it, he prepared a plan to make the customers, particularly housewives, aware of the product.” Which marketing function is discussed in the given lines?
(a) Gathering information
(b) Marketing plan
(c) Standardising
(d) Grading

55. Sarthak Ltd. is a big business unit. Mr. Singh has already defined the objectives and policies of the business very clearly in order to run his business successfully. He has an intimate relationship with the buyers, sellers and competitors etc., and in case of any difference of opinion, he takes the situation under his own control at the earliest possible.
He fully knows about the business environment and its importance. He also knows that the business environment is not the only factor related to business, but it includes the factors like economic, social, political, and technological and several other factors which are present outside the business. That is why the advantage of business environment can be taken only when a sharp eye is kept on all its factors. Identify the feature of business environment stated in the above event.
(a) Dynamic nature
(b) Inter-relatedness
(c) Totality of external forces
(d) Specific and general forces

56. Have you ever paid attention to how the school fete which you enjoy so much, actually takes place? What goes on behind the scene to make it the desired reality you want?
The whole activity is divided into task groups each dealing with a specific area like the food committee, the decoration committee, the ticketing committee and so on. These are under the overall supervision of the official in charge of the event. Coordinating relationships are established among various groups to enable smooth interaction and clarity about each group’s contribution towards the event.
Name the function of management highlighted in the above case.
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling

57. Gagan, the marketing manager of Skylane Ltd. stresses that a company cannot achieve its objectives without understanding the needs of its customers. It is the duty of the businessmen to keep consumer satisfaction in mind because business is run by the resources made available to them by the society. He acknowledged that he himself was taking into consideration the needs of the customers and that was the prime reason for success of his business. Identify the type of thinking that guided Gagan in the marketing efforts of his business as described in above lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

58. Karan decided to start a chocolate manufacturing business. He sets the target of earning 15% profit on sales in the first year. As a good businessman, he was concerned about the future of the business, which was uncertain. He gathered information that the demand for chocolates is increasing day by day. He used this information as the base for future planning and shared it with his team. On the basis of the gathered information, he scheduled a meeting in the following week to find innovative ways to achieve the objectives.
Identify the two steps of planning followed by Karan in the above case.
(a) Implementing the plan and follow up
(b) Identifying alternative course of action and evaluating them
(c) Developing premises and identifying the alternative courses of action
(d) Setting objectives and developing premises

59. Principle of scalar chain needs to be followed in an organisation where work is carried out by a lot of people at different level whereas it is of not much importance in the companies where work is performed by individual. Which feature of management principles is followed here?
(a) Flexible
(b) General guidelines
(c) Mainly behavioral
(d) Contingent

60. According to Taylor, “each specialist is to be assigned work according to his/her qualities, the employees who possess technical mastery should be involved in planning work whereas those with energy and good health may be assigned execution work.” Name the related principle of scientific management.
(a) Functional foremanship
(b) Science, not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) None of the above