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

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

Section A

1. Management is essential for which type of organisation?
(a) Profit or non-profit organisation
(b) Service organisation
(c) Social organisation
(d) All of the above

2. Planning promotes ……… to encourage new ideas that can take shape of concrete plans.
(a) innovation
(b) thinking
(c) imagination
(d) working

3. Which of the following statements is/are not true with regard to the concept of product?
(a) It is a bundle of utility
(b) It is a source of satisfaction
(c) It is confined to physical product
(d) All of the above

4. Radhey Ltd. is diversifying its product lines. Which organisational objective it is trying to achieve?
(a) Survival
(b) Profit
(c) Growth
(d) All of these

5. During Covid-19, Special’s Ltd. faced a lot of losses in their traditional clothing business due to decrease in sales. Due to the financial crisis, Raj and Raman were only paid 75% of their salary. State the principle followed.
(a) Remuneration of employees
(b) Stability of tenure of personnel
(c) Subordination of individual interest to general interest
(d) Differential piece wage system

6. ‘Beauty Products Ltd.’ is a natural and ethical beauty brand famous for offering organic beauty products for men and women. The company uses plant based materials for its products and is the No. 1 beauty brand in the country. It not only satisfies its customers but also believes in overall protection of the planet.
Identify the marketing management philosophy being followed by ‘Beauty Products Ltd’.
(a) Product concept
(b) Societal concept
(c) Marketing concept
(d) Selling concept

7. Management creates an ……… of an enterprise where individuals working together in groups perform efficiently and effectively towards achievement of group goals.
(a) internal environment
(b) external environment
(c) economic environment
(d) ecological environment

8. ……… refers to a variety of programmes to promote and protect a company’s image.
(a) Advertising
(b) Sales promotion
(c) Public relations
(d) Personal selling

9. It is the nature of the organising function of management to establish ……… between the activities/departments/positions of the enterprise.
(a) revolt
(b) coordination
(c) stability
(d) dynamism

10. Planning provides the goals or standards against which actual performance is measured. Identify the related point to the importance of planning.
(a) Planning is a mental exercise
(b) Planning provides directions
(c) Planning establishes standards for controlling
(d) Planning reduces the risks of uncertainty

11. Amanagement expert was invited by ‘Raghav Ltd.’. He gave a lecture in the meeting of employees on the importance of organising function of management. He said that under this function, the establishment of working relationships clarifies lines of communication and specifies who is to report whom. This removes ambiguity in transfer of information and instructions. It helps in creating a hierarchical order thereby enabling the fixation of responsibility and specification of the extent of authority to be exercised by an individual. Identify the point of importance of organising highlighted in the above case.
(a) Benefit of specialisation
(b) Optimum utilisation of resources
(c) Clarity in working relationships
(d) Development of personnel

12. ……… means the plans are monitored to ensure that the desired objectives are achieved efficiently and effectively.
(a) Determining planning premises
(b) Follow up
(c) Evaluating all the alternatives
(d) Implementing a plan

13. The basic role of firm under ……… concept is to identify a need and satisfy it better than its competitors.
(a) production
(b) product
(c) selling
(d) marketing

14. Skype industries is facing a lot of opposition as it pays less salary to women workers as compared to men workers. Which dimension of environment is being violated by the company?
(a) Economic environment
(b) Legal environment
(c) Political environment
(d) Social environment

15. ‘Airtight container protects the product from moisture’. Which function of packaging is being highlighted?
(a) Product identification
(b) Product protection
(c) Product promotion
(d) Facilitating use of the product

16. India has 22 of the world’s 30 most polluted cities, therefore the central government has approved an outlay of ` 10,000 crore for three years till 2022 to subsidise electric vehicles and drive the adoption of electric mobility in the country. Identify the step in the planning process being described in the above lines.
(a) Setting objectives
(b) Developing premises
(c) Both (a) and (b)
(d) None of these

17. ‘Feather Ltd.’ is a large multinational company and operates in many countries of the world. The company is in the business of business process outsourcing, knowledge process outsourcing, etc. What is being marketed by the company?
(a) Ideas
(b) Place
(c) Events
(d) Services

18. As a foreign tourist visited India, he noticed that Indian markets, tastes, trends and regulations were different from that of his country. Which feature of business environment is reflected here?
(a) Uncertainty
(b) Dynamic
(c) Relative concept
(d) All of these

19. Standard time taken by the worker to make one cardboard box is 20 minutes. Ajit Kumar, a worker has to put in 8 hours of work in a shift with one hour allowed for rest lunch. His standard output should be ……… .
(a) 21 boxes
(b) 23 boxes
(c) 24 boxes
(d) 16 boxes

20. Which of the following is not a merit of functional structure?
(a) It promotes control and co-ordination within a department
(b) It makes training of employees easier, as the focus is only on a limited range of skills
(c) It ensures that different products get due attention
(d) It leads to occupational specialisation

21. For the following two statements, choose the correct option.
Statement I Corrugated box containing 50 units of toothpaste is an example of transportation packaging.
Statement II Packaging acts as a silent salesman as it promotes the product and increases its sales.
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

22. “With increase in birth rate and fall in death rate, the infants now have bigger share in composition of population. It has increased the demand for baby products, like milk bottles, toys, etc.” Identify the component of business environment.
(a) Political
(b) Legal
(c) Economical
(d) Social

23. ……… is the basis of organising function of management.
(a) Controlling
(b) Leadership
(c) Division of work
(d) None of these

24. There should be a proper balance between …………………… of decision-making powers with top management and ………………… of decision-making power among more than one person.
(a) concentration, dispersal
(b) concentration, centralisation
(c) concentration, transfer
(d) centralisation, dispersal

Section B

25. Assertion (A) Timely understanding of business environment helps to make suitable changes in the organisation.
Reason (R) A firm gets various resources or inputs from its business environment.
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)

26. Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify the related limitation of planning.
(a) Planning leads to rigidity
(b) Planning may not work in a dynamic environment
(c) Planning does not guarantee success
(d) Planning reduces creativity

27. What assists in planning and helps in policy formation?
(a) Scientific management
(b) Business environment
(c) Group dynamics
(d) None of these

28. Two Big Banner Movies were scheduled to be released on the same date. However, at the last moment, release of one movie had to be postponed due to opposition by a group of people because of some unethical content in the movie. The loss suffered by movie postponed, provided opportunity for the released movie, to earn huge revenues.
Which feature of business environment is highlighted in the given case?
(a) Inter-relatedness
(b) Relativity
(c) Complex
(d) Uncertainty

29. Mr. Raman, the manager of PQR Ltd. believes that the members of any organisation should work in a common direction to achieve the organisational goal. There is a requirement of integrated efforts of all, as all departments are interrelated to each other. Therefore, there is a need to harmonise individual goal with organisational goals.
Which concept Mr. Raman has discussed about?
(a) Management
(b) Direction
(c) coordination
(d) Planning

30. Assertion (A) Marketing management is generally related to creation of demand.
However, in certain situations, the manager has to restrict the demand.
Reason (R) The marketing management is only concerned with creating demand but not managing the demand effectively, as per the situation in the market.
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)

31. Management is ……… as it can’t be seen but its effects can be felt in the form of results like whether the objectives are met and whether people are motivated or not and there is orderliness and coordination in the work environment.
(a) intangible force
(b) tangible force
(c) internal force
(d) external force

32. ……… means that unit of many parts, every part of which performs separate functions but is still connected with the main unit in a definite relationship.
(a) Organisation
(b) Planning
(c) Controlling
(d) Directing

33. “In dealing with a situation of conflict between two departments, a manager may emphasise the primacy of the overall goals of the organisation.” Which aspect of managerial principles has been highlighted in aforesaid situation?
(a) Universal
(b) Flexible
(c) General guidelines
(d) Behavioural

34. Miss Bindu is working as the Production Manager in a company. She divided the work among her subordinates in accordance with their interest and ability. Not only this, she even gave them all the authorities to take decisions relating to their work. At the end of the first month of the year, it was found that Mr. Raj Sabharwal had not achieved his target. He was lagging far behind his target. Miss Bindu asked him to give the reason within two days why his performance was low.
With which concept of management, the conversation between Miss Bindu and Mr. Raj referred to in the above paragraph is related?
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of these

35. At times, a business may concentrate more on producing goods with fewer resources i.e., cutting down cost but not achieving the targeted production. Consequently, the goods do not reach the market and hence the demand for them declines and competitors enter the market. Which aspect of management was ignored in this situation?
(a) Efficiency
(b) Effectiveness
(c) Productivity
(d) Coordination

36. Which of the following statement is not true with reference to planning?
(a) Planning is a pre-requisite for controlling
(b) Planning does not leads to rigidity
(c) Planning enables a manager to look ahead and anticipate changes
(d) Planning facilitates coordination among departments and individuals in the organisation

37. Assertion (A) Management is called an inexact science.
Reason (R) Management deals with complex human behaviour, which cannot be determined with accuracy.
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. ……… is the central point according to the marketing concept.
(a) Customer’s satisfaction
(b) Customer’s welfare
(c) Quality of the product
(d) Quantity of the product

39. Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs. Which objective of management is highlighted in aforesaid statement?
(a) Organisational objective
(b) Social objective
(c) Personal objective
(d) None of these

40. The subject of management is taught at different institutions. Some of these have been set up with the specific purpose of providing management education such as the Indian Institutes of Management (IIMs) in India. Entry to different institutes is usually through an examination. Which aspect of management is highlighted in aforesaid statement?
(a) Management as a science
(b) Management as an art
(c) Management as a science and an art
(d) Management as a profession

41. Planning is a ……… exercise as it requires application of mind involving foresight, intelligence, imagination and sound judgement.
(a) mental
(b) judicious
(c) judgemental
(d) thinking

42. ……… is responsible for preparing the time and cost sheet.
(a) Instruction card clerk
(a) Speed boss
(c) Time and cost clerk
(d) Route clerk

43. The labelling of a pack of oats explains how the product is beneficial in adding fibre to the diet and the other related health benefits. Identify the related function of labelling being described in the given case.
(a) Describes the product and specifies its content
(b) Identification of the product or brand
(c) Grading of products
(d) Helps in promotion of the products

44. Through their efforts, quality of output is maintained, wastage of materials is minimised and safety standards are maintained. Which level of management is highlighted in aforesaid statement?
(a) Top level of management
(b) Middle level of management
(c) Operational management
(d) None of these

45. For the following two statements, choose the correct option.
Statement I Planning can eliminate business risk.
Statement II Planning avoids misunderstanding and duplication of efforts.
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. For the following two statements, choose the correct option.
Statement I Scalar chain is crucial to ensure unity of command and effective communication in the organisation.
Statement II Esprit de corps means all employees should be treated in the same manner.
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. On visiting a supermarket to buy a pack of moisturiser, Harsha noticed that the packaging of most of the beauty products exhibited a photograph of a celebrity.
Identifythe related function of packaging being described in the given case.
(a) Facilitates the use of product
(b) Assists in promotion of the product
(c) Helps in product identification
(d) Provides protection to the product

48. It is not always true that just because a plan has worked before, it will work again.
Identify the related limitation of planning.
(a) Planning leads to rigidity
(b) Planning reduces creativity
(c) Planning may not work in a dynamic environment
(d) Planning does not guarantee success

Section C

Direction : – Read the following case study and answer question number 49-54 on the basis of the same.
Jolly Good Ltd. is a well-known entertainment company in Bengaluru. The main divisions of the company include television, print, and films. Each unit has a divisional manager responsible for performance and who has authority over the unit. All its divisions are multifunctional as within each division functions like production, human resource, marketing, finance, purchase etc., are performed simultaneously for the accomplishment of desired goals. Keeping in view, the nature of work, the company has shaped a narrow span of control across at all levels.

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

50. Identify the type of organisational structure being followed by the company.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure

51. Which of the following may not be a reason for the company to adopt this type of structure as identified in question above?
(a) Promotes product specialisation
(b) Helps in fixation of responsibility in cases of poor performance of a unit
(c) Leads to economies of scale and this lowers cost
(d) Promotes flexibility and initiative

52. Which of the following statement is true about span of management?
(a) It gives shape to the organisational structure
(b) It determines the levels of management in the structure
(c) Both (a) and (b)
(d) None of the above

53. Keeping in view the policy of the Jolly Good Ltd., it is likely to have ……… number of levels in management.
(a) More
(b) Less
(c) Difficult to define
(d) None of these

54. “All its divisions are multifunctional as within each division functions like production, human resource, marketing, finance, purchase, etc. are performed simultaneously”.
Which step of organising highlighted here?
(a) Division of work
(b) Departmentalisation
(c) Assigning duties
(d) Reporting relationships

55. Once the ‘Sharda Club, Delhi’ organised ‘Health Care Week’ for its members. It had a very positive effect on its members. Now the members had become more careful about their health than earlier. Not only this, the members also acquainted the people outside the club to take advantage out of it. The changing attitude of the people towards health was visible in the market also. Now a great demand for sugar free products, fat free cooking oil and diet coke rose up in the market. The manufacturers had to immediately increase their production. ‘Sharda Food Producers, Delhi’ brought/launched these products in the market first of all and earned a great profit.
Which particular ‘feature of the business environment’ does the event described above acquaint us with?
(a) Dynamic nature
(b) Inter-relatedness
(c) Totality of external forces
(d) Specific and general forces

56. Madhubala is planning to launch an online education portal. In order to understand the varied needs of the students, she conducted an online survey. Based on the feedback of the survey, she has decided to offer educational packages to the prospective buyers.
Identify the type of marketing concept being described in the given lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

57. Karam Limited is offering a travel package for 15 destinations worldwide with a free insurance on the bookings for the month of December, 2021. Identify the feature of marketing being described in the above lines.
(a) Needs and wants
(b) Creating a market offering
(c) Customer value
(d) Exchange mechanism

58. Chintu, Product Head at Ashok Leyland Limited, plans to make his company best of the decade. For this purpose, he sets objectives, prepares strategies and other action plans keeping the internal as well as external forces in mind so that departments and individuals working in the organisation are able to decide what action should be taken and in which direction. Identify the importance of management highlighted in the case.
(a) Planning reduces uncertainty
(b) Planning reduces overlapping
(c) Planning provides direction
(d) Planning facilitates decision-making

59. Raman is a very efficient employee of “Hamlyn”. He performs a lot of tasks everyday.
He keeps a check on proper working of subordinates working under him. He has to submit a monthly analysis to his boss about the best ways in which a goal can be completed, best techniques by which goal can be achieved in minimum time, etc. He also has to do analysis on rest intervals required by employees to maintain efficient working. Identify the job not performed by Raman.
(a) Method Study
(b) Motion Study
(c) Fatigue Study
(d) Time Study

60. Principles of management emphasise on logical and rational decision-making rather than on the basis of bias and prejudice. The given statement highlights that the knowledge of principles of management leads to
(a) providing managers with useful insight into reality.
(b) scientific decisions.
(c) meeting changing environmental requirement.
(d) All of the above