Board Paper of Class 12 Business Studies Term-I 2021 Delhi(Set 4) (Series: SSJ/1) - Solutions

General Instructions:

(i) This question paper contains 60 questions out of which 50 questions are to be attempted. All questions carry equal marks.

(ii) This question paper consists three Sections – Section A, B and C.

(iii) Section – A contains 24 questions. Attempt any 20 questions from Q. No. 1 to 24.

(iv) Section – B contains 24 questions. Attempt any 20 questions from Q. No. 25 to 48.

(v) Section – C contains 12 questions. Attempt any 10 questions from Q. No. 49 to 60.

(vi) The first 20 questions in each in Section A and Section B and first 10 questions in Section C attempted by a candidate will be evaluated.

(vii) There is only one correct option for every Multiple Choice Question (MCQ). Marks will not be awarded for answering more than one option.

(vii) There is no negative marking.

Question 1
The process of designing and maintaining an environment in which individuals work together in groups, efficiently accomplishing selected aims, is known as
(a) Planning
(b) Organising
(c) Management
(d) Efficiency VIEW SOLUTION

Question 2
The owner of 'Sweet Moments' wedding hall spent a great deal of time, money and effort in renovation expecting a bumper wedding season in 2020 but due to the pandemic, weddings became intimate home affairs and not many bookings happened.
The limitation of planning highlighted in the above case is
(a) It reduces creativity.
(b) It may not work in a dynamic environment.
(c) It leads to rigidity.
(d) It is time consuming. VIEW SOLUTION

Question 3
Packaged food items in India must have a colour code. As per Food Safety and Standards Authority of India (FSSA) a green dot on its label indicates vegetarian food, whereas a red dot indicates non-vegetarian food.
Which function of labelling is discussed above?
(a) Describes the product and specifies its contents
(b) Identification of the product or brand
(c) Helps in promotion of the product
(d) Providing information required by law VIEW SOLUTION

Question 4
Which one of the following is not a step in the process of 'organising'?
(a) Identification and division of work
(b) Departmentalisation
(c) Span of management
(d) Assignment of duties VIEW SOLUTION

Question 5
Each participant in a formal organisantion should receive orders from one and only one boss and be responsible to only one superior.
The principle of management discussed above is :
(a) Authority and Responsibility
(b) Unity of command
(c) Esprit de corps
(d) Unity of direction VIEW SOLUTION

Question 6
Matchsticks come in matchboxes which are thrown by the consumer after the matchsticks are utilised.
Matchbox represents which level of packaging?
(a) Primary package
(b) Secondary packaging
(c) Transportation packaging
(d) Speciality packaging VIEW SOLUTION

Question 7
Grouping activities of similar nature together to facilitate specialisation is called
(a) Delegation
(b) Departmentalisation
(c) Decentralisation
(d) Division of work VIEW SOLUTION

Question 8
Rajeev, a leading rice seller, always ensures that rice conforms to the predetermined standards of quality, price and packaging which reduces the need for inspection and testing. He also classified the rice into regular choice basmati, mogra basmati, dubar basmati and super basmati according to the quality of rice and has fixed the prices accordingly.
Which function of marketing is being discussed here?
(a) Gathering and analysing market information
(b) Product designing and development
(c) Market planning
(d) Standardisation and Grading
VIEW SOLUTION

Question 9
Which organisational structure is suitable for business having a large variety of products?
(a) Functional
(b) Divisional
(c) Informal
(d) Vertical VIEW SOLUTION

Question 10
In one of the steps in the process of planning, the manager is required to make certain assumptions about the future which are the base material upon which plans are to be drawn. Identify the step:
(a) Setting ohjectives
(b) Developing premises
(c) Identifying alternative courses of action
(d) Selecting an alternative VIEW SOLUTION

Question 11
The framework within which managerial and operating tasks are performed, which specifies the relationship between people, work and resources and allows coordination among different resources to accomplish desired goals is known as
(a) Organisation chart
(b) Levels of management
(c) Span of management
(d) Organisation structure VIEW SOLUTION

Question 12
____________provides the standards against which actual performance is measured.
(a) Controlling
(b) Planning
(c) Directing
(d) Staffing VIEW SOLUTION

Question 13
Which of the following product-related decisions helps in providing basis for distinguishing the product of a firm with that of a competitor which in turn helps in building customer's loyalty and in promoting its sales?
(a) Advertising
(b) Pricing
(c) Branding
(d) Promotion VIEW SOLUTION

Question 14
Indian ethnic wear like sarees are in great demand in India but Italy does not have such a high demand for the same.
Which feature of business environment is reflected from this statement ?
(a) Inter-relatedness
(b) Uncertainty
(c) Complexity
(d) Relativity VIEW SOLUTION

Question 15
The element of marketing mix through which the goods and services are made available at right place, at right time and to right people without change, is known as:
(a) Promotion
(b) Warehousing
(c) Transportation
(d) Physical distribution VIEW SOLUTION

Question 16
Planning ensures that the goals are clearly stated, so that they act as a guide for deciding what action should be taken and in which direction. If goals are well-defined, employees are aware of what the organisation has to do to achieve those goals.
The above para highlights the following point of importance of planning:
(a) Planning promotes innovating ideas.
(b) Planning establishes standards for controlling.
(c) Planning provides direction.
(d) Planning is pervasive. VIEW SOLUTION

Question 17
"Price fixation process is affected by distribution system, quality of salesmen employed, quality and amount of advertising, type of packaging, credit facility provided, etc." The factor affecting price determination is :
(a) Utility and Demand
(b) Extent of competition in the market
(c) Pricing objectives
(d) Marketing methods used VIEW SOLUTION

Question 18
A leading vacuum cleaner company recently introduced a robotic vacuum cleaner that sweeps, mops and disinfects surfaces within no time. Due to this there is a shift in demand from ordinary vacuum cleaners to robotic vacuum cleaners.
The dimension of business environment discussed is :
(a) Technological
(b) Political
(c) Economic
(d) Legal VIEW SOLUTION

Question 19
Which principle of scientific management called for complete mental revolution on the part of management and workers ?
(a) Science, not rule of thumb
(b) Harmony, not discord
(c) Cooperation, not individualism
(d) Development of each and every person to his/her greatest efficiency and prosperity VIEW SOLUTION

Question 20
Which type of organisation structure has a likely disadvantage of pursuing departmental interests at the cost of organisational interests leading to creation of functional empires wherein importance of a particular function may be over-emphasised ?
(a) Formal organisational structure
(b) Functional organisational structure
(c) Divisional organisational structure
(d) Informal organisational structure VIEW SOLUTION

Question 21
The marketing philosophy which advocates that business should not be short-sighted to serve only consumer needs but should also consider the larger issues of social problems like environmental pollution, deforestation, adulteration as well, is known as:
(a) Product concept
(b) Marketing concept
(c) Production concept
(d) Societal marketing concept VIEW SOLUTION

Question 22
The Indian sweet industry has been through many changes over the years. Identifying the growing trend towards healthier options, Ajay Verma started 'Guilt-free Sweets', offering variety of sugar-free sweets to the customers.
The dimension of business environment highlighted above is:
(a) Social
(b) Economic
(c) Political
(d) Technological VIEW SOLUTION

Question 23
An organisation can never be completely centralised or decentralised. As it grows in size and complexity there is a tendeney to move towards ________ decision-making.
(a) centralised
(b) concentric
(c) decentralised
(d) innovative VIEW SOLUTION

Question 24
'Good Health Care' ensures that no doctor provides less favourable treatment to patients on account of gender, religion, occupation, language, caste, belief or nationality. They do their utmost to ensure that all patients are treated as fairly as possible.
Identify the principle of management being followed by 'Good Health Care'.
(a) Stability of personnel
(b) Initiative
(c) Order
(d) Equity VIEW SOLUTION

Question 25
A leading pizza chain recently introcduced 'Momo Mia' pizza - a combination of pan pizza with momos in its crust. Their market research had revealed that momos are the second most loved street food of India right after golgappas. They wanted to be the first company to take advantage of this opportunity rather than losing out to competitors.
The point of importance of understanding of business environment discussed above is:
(a) Tapping useful resources
(b) Identifying opportunities and getting the first mover advantage
(c) Improvement in performance
(d) Coping with rapid changes VIEW SOLUTION

Question 26
Prem Lal, the Managing Director of Awasthi Ltd., retired after 33 years of service. The responsibility was given to Raj. Raj realised that there was lot of rivalry, confusion and misunderstanding among the departmental heads. He detected inefficiencies, took corrective measures and developed a master plan for the organisation to follow. This served as a basis for coordinating the activities of all the departments, led to clarity of thought and action and work got off to a smooth start.
(a) Planning reduces overlapping and wasteful activities.
(b) Planning establishes standards for controlling.
(c) Planning reduces the risks of uncertainty.
(d) Planning promotes innovative ideas. VIEW SOLUTION

Question 27
When COVID vaccination started, the Central Government capped the prices of the vaccines for private hospitals with Health Ministry notifying that appropriate action would be taken for overcharging. State governments were told to ensure that prices charged by various private hospitals do not exceed the ceiling.
The factor affecting price determination discussed above is :
(a) Product cost
(b) Utility and demand
(c) Government and legal regulations
(d) Extent of competition in the market VIEW SOLUTION

Question 28
Given below are two statements. One is Assertion (A) and another is Reason (R) :
Assertion (A): Business environment is largely uncertain.
Reason (R): It is very difficult to predict future happenings especially when environment changes are taking place too frequently.
In the context of the above statements, identify the correct option :
(a) Both Assertion (A) and 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). VIEW SOLUTION

Question 29
'Rainbow World School' planned its annual alumni meet to get in touch with old students. Task groups like invitation committee, decoration committee and food committee were formed and placed under the overall supervision of the official in-charge of the event. Reporting relationships were established among various groups to enable smooth interaction and clarity about each group's contribution towards the event.
(a) Planning
(b) Directing
(c) Organising
(d) Staffing VIEW SOLUTION

Question 30
‘Kent' started off as a RO water purifier company. Over the years, it diversified its product portfolio and now offers a wide range of healthcare products like air purifier, vegetable cleaners, water softeners and a range of modern kitchen appliances all under the same brand name.
Which characteristic of brand name is reflected in the above para?
(a) Suggestive
(b) Versatile
(c) Staying power
(d) Capable of legal protection VIEW SOLUTION

Question 31
Which of the following concepts of organising provides more control by superiors leading to less freedom to subordinates to take their own decisions. It is a compulsory act.
(a) Departmentalisation
(b) Decentralisation
(c) Delegation
(d) Accountability VIEW SOLUTION

Question 32
Sunshine Industries which started off as a single product company has over the years diversified into varied product categories and the need for a more evolved structural design was felt to cope with emerging complexity. Suggest the organisation structure that would be suitable for Sunshine Industries now:
(a) Functional structure
(b) Divisional structure
(c) Operational structure
(d) Occupational structure VIEW SOLUTION

Question 33
The principles of management are guidelines to action but do not provide readymade straitjacket solutions to managerial problems.
The feature of principles of management discussed above is :
(a) Universal applicability
(b) General guidelines
(c) Flexible
(d) Mainly behavioural VIEW SOLUTION

Question 34
______ is the right to command and _________ is the obligation of a subordinate to property perform the assigned duty.
(a) Authority, responsibility
(b) Accountability, authority
(c) Authority, accountability
(d) Responsibility, accountability
VIEW SOLUTION

Question 35
‘Bubbly Bee' Enterprises recently launched its new range of balloons with inbuilt lights on the occasion of Diwali and set a target of 10% return on investment. The Managing Director, Sudhakar integrated the efforts of all the three departments i.e., Purchase, Production and Sales departments at different levels for achieving the target harmoniously. The product was an instant hit and ‘Bubbly Bee' Enterprises was able to achieve its target.
The characteristic of coordination discussed in the above case is:
(a) Coordination is a continuous process
(b) Coordination is multi-dimensional
(c) Coordination requires ethical code of conduct
(d) Coordination is an all pervasive function VIEW SOLUTION

Question 36
‘Esya Cars' was founded by engineers who wanted to prove that people don't need to compromise to drive electric vehicles. They took it as a challenge and new ideas took the shape of concrete plans. In July, 2021, they launched their first set of all electric cars, proving to the world that electric vehicles can be better, quicker and more fun to drive than gasoline cars.
The point of importance of planning discussed in the above case is :
(a) Planning reduces the risk of uncertainty
(b) Planning reduces overlapping and wasteful activities
(c) Planning promotes innovative ideas
(d) Planning establishes standards for controlling VIEW SOLUTION

Question 37
Vijay was founder of a leading chain of Automobile shops dealing in high end cars. He believed in retaining all decision making authority with him. He wanted tight control over the entire business. Getting overburdened with work, he decided to focus only on crucial decision. He asked the vice president of his company to help him with routine matters. This case study reflects a shift from one concept of organisation to another which is :
(a) Delegation to decentralisation
(b) Centralisation to decentralisation
(c) Decentralisation to delegation
(d) Centralisation to delegation VIEW SOLUTION

Question 38
Hariom Jewellers introduced a series of short-term incentives like 40% discount on diamond jewellery, 0% making charges and a contest to win a luxury car to encourage the buyers to make immediate purchase of their products during the festive season.
Identify the promotional tool used by them:
(a) Advertising
(b) Personal selling
(c) Sales Promotion
(d) Publicity VIEW SOLUTION

Question 39
"The difference between successful and unsuccessful organizations is that successful organizations do not rely on chance but follow deliberate process to synchronise the activities of different departments to ensure that planned objectives are achieved with a minimum of conflict." The process mentioned above is:
(a) Organizing
(b) Planning
(c) Coordination
(d) Management VIEW SOLUTION

Question 40
Manoj, a leading director of a big movie production house always gives opportunities to his subordinates to utilize their talent. His subordinate Shruti used these opportunities to showcase her talent and developed her skills to perform complex tasks. Eventually Shruti started directing films on her own and was promoted as an Assistant Director. with a huge increase in salary.
The point of importance of delegation reflected in the above case is:
(a) Better coordination
(b) Effective management
(c) Employee development
(d) Basis of management hierarchy VIEW SOLUTION

Question 41
Given below are two statements One is Assertion (A) and another is Reason (R)
Assertion (A): Planning essentially involves looking ahead and preparing for future through forecasting.
Reason (R): Forecasting helps to anticipate future events and drawing up of plans.
In the contest of the above statements, identify the correct option:
(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). VIEW SOLUTION

Question 42
The application of principles of management is dependent upon the prevailing situation at a particular point of time.
The characteristic of principles of management reflected in the above statement is:
(a) Universal applicability
(b) Cause and effect relationship
(c) Flexible
(d) Contingent VIEW SOLUTION

Question 43
Which of the following statements is not a part of the process of marketing management?
(a) Choosing a target market
(b) Getting, keeping as well as growing customers
(c) Achieving the objectives through creating, developing and communicating superior customer values of management
(d) Becoming essentially a member of marketing association VIEW SOLUTION

Question 44
Which of the following features of science is fully satisfied by management ?
(a) Systematised body of knowledge
(b) Principles based on experimentation
(c) Universal validity
(d) Based on practice and creativity VIEW SOLUTION

Question 45
Amulya wants to start her own cafe. Her long-term goal is to get 40% of the market share. For this she gathered information and made forecasts about the potential demand, purchasing power of the consumers as well as preferenees of the consumers and government policy towards this business, etc. By doing this, Amulya had completed some steps in the process of planning.

Chose the step in the planning process that Amulya has to follow next:
(a) Setting objectives
(b) Developing premises
(c) Identifying alternative courses of action
(d) Evaluating alternative courses VIEW SOLUTION

Question 46
'Heyday Productions' is a big factory having 3000 workers. Management of this factory warts that workers should not go on strikes for their unreasonable demands. There should be almost equal division of work and responsibility between workers and mansgement and both of them have to realise that they need each other. To replace the cornpetition by cooperation, management must give importance to those constructive suggestions made by employees which should result in reduction of cost.

Identify the Taylor's principle of management applied by 'Heyday Productions':
(a) Initiative
(b) Cooperation, not individualism
(c) Development of each and every person to his/her greatest efficiency and prosperity
(d) Subordination of individual interest to general interest VIEW SOLUTION

Question 47
The element of marketing mix which communicates availability of the product, its features, merits, etc. to the target customers and persuades them to buy the product is called
(a) Product
(b) Price
(c) Place
(d) Promotion VIEW SOLUTION

Question 48
For the following statements, choose the correct option:
Statement I: Planning is a continuous process.
Statement II: Once plans are formed and implemented, they need to be followed by new plans according to the new requirements.
Choose the correct option from the options given below:
(a) Statement I is correct and Statement II is not correct.
(b) Statement II is correct and Statement I is not correct.
(c) Both the Statements I and II are correct.
(d) Both the Statements I and II are not correct. VIEW SOLUTION

Question 49
Read the following text and answer questions number 49 - 54 on the basis of the same:
Rani is working as a Chief Executive Officer (CEO) in 'Alpha Ltd.' Vipul is working as a Production Manager in the same organisation though he does not possess any specific degree for this post. Pratap is also working in this organisation and constantly interacts with the workers and explains to them the plans drawn by middle level management and spends a lot of time correcting the work of Divesh, who is a new worker, and motivating him.

Identify the function that Rani would not have to perform as a Chief Executive Officer:
(a) Integrating diverse elements and coordinating activities of different departments to achieve overall objectives.
(b) Ensuring that wastage is minimised and safety standards are maintained.
(c) Analysing business environment and its implication for survival of organisation.
(d) Formulating overall organisational goals and strategies for their achievement. VIEW SOLUTION

Question 50
Read the following text and answer questions number 49 - 54 on the basis of the same:
Rani is working as a Chief Executive Officer (CEO) in 'Alpha Ltd.' Vipul is working as a Production Manager in the same organisation though he does not possess any specific degree for this post. Pratap is also working in this organisation and constantly interacts with the workers and explains to them the plans drawn by middle level management and spends a lot of time correcting the work of Divesh, who is a new worker, and motivating him.

Identify the level of management at which Vipul is working:
(a) Top level
(b) Operational level
(c) Middle level
(d) Supervisory level VIEW SOLUTION

Question 51
Read the following text and answer questions number 49 - 54 on the basis of the same:
Rani is working as a Chief Executive Officer (CEO) in 'Alpha Ltd.' Vipul is working as a Production Manager in the same organisation though he does not possess any specific degree for this post. Pratap is also working in this organisation and constantly interacts with the workers and explains to them the plans drawn by middle level management and spends a lot of time correcting the work of Divesh, who is a new worker, and motivating him.

In spite of not possessing any specific degree, Vipul is working as a Production Manager in 'Alpha Ltd.' This reflects that management does not strictly meet one of the following criteria of a profession.
Identify the criterion/feature:
(a) Well-defined body of knowledge
(b) Restricted entry
(c) Service motive
(d) Ethical code of conduct VIEW SOLUTION

Question 52
Read the following text and answer questions number 49 - 54 on the basis of the same:
Rani is working as a Chief Executive Officer (CEO) in 'Alpha Ltd.' Vipul is working as a Production Manager in the same organisation though he does not possess any specific degree for this post. Pratap is also working in this organisation and constantly interacts with the workers and explains to them the plans drawn by middle level management and spends a lot of time correcting the work of Divesh, who is a new worker, and motivating him.

At which level of management is Pratap working?
(a) Top level
(b) Middle level
(c) Supervisory level
(d) At both top and middle level VIEW SOLUTION

Question 53
Read the following text and answer questions number 49 - 54 on the basis of the same:
Rani is working as a Chief Executive Officer (CEO) in 'Alpha Ltd.' Vipul is working as a Production Manager in the same organisation though he does not possess any specific degree for this post. Pratap is also working in this organisation and constantly interacts with the workers and explains to them the plans drawn by middle level management and spends a lot of time correcting the work of Divesh, who is a new worker, and motivating him.

As a Production Manager, identify the function that Vipul would not perform:
(a) Ensure that his department has the necessary number of personnel.
(b) Interpret the policies framed by the Chief Executive Officer, Rani.
(c) Motivate the employees of his department to achieve the desired objectives.
(d) Interacting with the actual workforce. VIEW SOLUTION

Question 54
Read the following text and answer questions number 49 - 54 on the basis of the same:
Rani is working as a Chief Executive Officer (CEO) in 'Alpha Ltd.' Vipul is working as a Production Manager in the same organisation though he does not possess any specific degree for this post. Pratap is also working in this organisation and constantly interacts with the workers and explains to them the plans drawn by middle level management and spends a lot of time correcting the work of Divesh, who is a new worker, and motivating him.

Identity the function that Pratap would have to perform in addition to those mentioned in the above case.
(a) Maintaining quality of output and safety standards
(b) Implementing the plans and strategies developed by Rani
(c) Cooperate with other departments for smooth functioning of the organisation
(d) Ensuring that his department has the necessary number of personnel VIEW SOLUTION

Question 55
Sarvodaya Palace is a 40-year-old established hotel in Udaipur. However, recently the travellers started looking for free WiFi, early check in and pet care facilities. The manager sensing the shifts in consumers preferences upgraded the hotel and its policies to accommodate all of these.
Which feature of business environment is highlighted in the above case?
(a) Complexity
(b) Dynamic nature
(c) Uncertainty
(d) Relativity VIEW SOLUTION

Question 56
The marketing management philosophy which aims at earning profit by making continuous product improvements is:
(a) Marketing concept
(b) Selling concept
(c) Production concept
(d) Product concept VIEW SOLUTION

Question 57
Maintenance services, after sales services and handling customer complaints are very
effective in bringing repeat sales from customers and developing brand loyalty for a
product by maximising customer satisfaction.
The function of marketing discussed above is:
(a) Pricing of product
(b) Warehousing
(c) Customer support services
(d) Branding VIEW SOLUTION

Question 58
‘Surya Fashion Ltd.’, hired Suresh Malhotra, an ace fashion designer to develop a new product line. He charged ₹50 lakh for consultation. The company spent another 15 crores in formulating the marketing campaign for launching their new product line. Their products were not liked by the consumers and the company could generate a revenue of 15 lakh only from this product line. 'Thus, the cost incurred is not justifying the benefits derived from the plans.
Which limitation of planning; is reflected in the above para?
(a) Planning is time consuming
(b) Planning involves huge costs
(c) Planning leads to rigidity
(d) Planning reduces ereativity VIEW SOLUTION

Question 59
In the technique of Functional Foremanship advocated by Taylor, the four personnel who work under Planning Incharge are:
(a) Disciplinarian, Instruction Card Clerk, Time and Cost Clerk, Route Clerk
(b) Speed Boss, Gang Boss, Repair Boss, Inspector
(c) Route Clerk, Time and Cost Clerk, Inspector, Instruction Card Clerk
(d) Speed Boss, Gang Boss, Repair Boss, Disciplinarian VIEW SOLUTION

Question 60
Reema is working as a Production Manager' in a company manufacturing different types of products of milk. Now she is planning to launch packaged Kheer in packs of 250 grams for which she requires to reduce a few line of products which are not profitable. She knows that it will result in savings of cost of labour and machines.
Identify the technique of management applied by Reema in the above situation:
(a) Motion study
(b)Time study
(c) Method study
(d) Standardisation and simplification of work VIEW SOLUTION