MID TERM EXAMINATION (2023-24)

CLASS XII
BUSINESS STUDIES
SET 1
TIME: 3 HRS. MAX. MARKS: 80

General Instructions
a) Answers to questions carrying 1 mark may be from one word to one
sentence.
b) Answer to questions carrying 3 marks may be from 50 to 75 words.
c) Answer to questions carrying 4 marks may be about 150 words
d) Answer to questions carrying 6 marks may be about 200 words.
e) Attempt all parts of a question together.

1. Which of the following is not an advantage of functional 1

organization?
(a) Ease of personal training
(b) Ease in fixation of responsibility
(c) Occupational Specialization
(d) Effective departmental control

2. A company dealing in a diversified range decided to group its 1

activities on the basis of the products it is dealing in. Which step of
the process of Organizing is being performed?
(a) Identification and division of work
(b) Assignment of duties
(c) Establishing authority and reporting relationships
(d) Departmentalization

3. It can be defined as a process that initiates implementation of plans 1

by clarifying jobs and working relationships and effectively
deploying resources for attainment of identified and desired results.
The process is:

(a) Planning
(b) Directing
(c) Controlling
(d) Organizing

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4. Name the step of the controlling process where sample checking done 1
to see whether the products manufactured conforms to quality
specifications laid down for it.
(a) Measurement of actual performance
(b) Analyzing deviations
(c) Setting performance standards
(d) Taking corrective action

5. A company facing the problem of declining productivity, decided to 1

train its workforce to use a new technology. The training went well
with employees and the company was able to reduce the overall cost,
however, the targets for the month were not achieved as majority of
the time went in training. The company was:
(a) Effective but not efficient
(b) Efficient but not effective
(c) Neither effective nor efficient
(d) Both effective and efficient

6. In this organizational structure, no department is responsible for the 1

end result. It is:
(a) Divisional structure
(b) Functional structure
(c) Formal structure
(d) Informal structure

7. In one of the monthly interdepartmental meeting, the Managing 1

Director stated that there are still many opportunities in the market
that they are yet to explore. The Departmental heads need to identify
the new markets, any additional revenue streams, etc. They have to
think about their customer base and put more focus on their
marketing strategies and online presence.

Which function of Management is being referred to?

(a) Planning
(b) Organizing
(c) Directing
(d) Controlling

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8. Which of the following is not a type of psychological barriers? 1
(a) Premature evaluation
(b) Lack of attention
(c) Fear of challenge to authority
(d) Distrust

9. Span of management refers to: 1

a) Number of subordinates at lower level.
b) Total number of managers.
c) Number of subordinates under a superior.
d) Number of levels in the organisation

10. For the following two statements choose the correct option: 1
Assertion :( A) Planning is futuristic
Reason: (R ) Planning is concerned with the future which is
certain and does not require forecast
a) Both (A) and ( R ) are correct
b) (A) is correct ( R) is incorrect
c) Both (A) and ( R) are correct, and R is the correct
explanation of A
d) Both (A) and ( R) are correct, and R is not the correct
explanation of A

11. A purchase manager of a company has to purchase 500 tons of raw 1

material. Apart from the other suppliers in the market, his son also
supplies that raw material. The manager purchases the raw material
from the firm of his son at a rate higher than the market rate, which
principle of management has been violated by this situation?
(a) Unity of command
(b) Unity of direction
(c) Subordinating personal interest to general interest
(d) Equity

12. With the introduction of mineral water bottle in India, Bisleri was 1
able to capture the big market share in India.
Which importance of business environment is highlighted in above
case

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 (a) Helps in tapping resources
(b) Help in policy making
(c) Improve performance
(d) Help to identify opportunity and getting first mover
advantage
13. The court issued the order that for vehicles to be smokeless was most 1
essential and that any one violating this order shall have to pay a
heavy fine. Identify the dimension of Business environment?
a) Economic environment
b) Political environment
c) Legal environment
d) Social environment

14. Planning requires logical and systematic thinking rather than guess 1
work or wishful thinking. What characteristic of planning does this
statement highlight?

15. Define Workload analysis. 1

16. “In case the debts are not paid within a month, interest at a definite 1
rate will be levied.” To what element of planning does this saying
point out?
(a) Policy
(b) Rule
(c) Procedure
(d) Budget

17. If a company deals in metal products and plastic products, what type 1
of organization will be useful for it?
(a) Informal
(b) Functional
(c) Both the above
(d) Divisional

18. What is aptitude test conducted in the process of selection? 1

19. A company gets application on and off even without declaring any 1
vacancy. However, as and when the vacancy arises, the company

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 makes use of such applications. Name the source of external
recruitment used by the company.

20. Under which training method factory like conditions are created? 1
(a) Induction Training
(b) Apprenticeship Training
(c) Vestibule Training
(d) Internship Training

21. Explain “Critical point control” with respect to analyzing deviations, 3

a step in the process of controlling. Give a suitable example.
OR
Explain “Management by exception” with respect to analyzing
deviations, a step in the process of controlling. Give a suitable example.

22. Mrs. Ahilya Pasi is the Principal of a prestigious school in New 3

Delhi. The school has a vacancy of a headmistress/headmaster of the
junior wing of the school. The senior teachers of the school have the
opinion that only internal candidates should be considered for this
post. However, Mrs. Pasi and the management would like to invite
applications from external sources too. Briefly explain any three
justifications the management can provide to convince the staff for
inviting applications of external candidates for the vacant post.
23. Explain any three points which highlight the importance of delegation 3
for an organisation.

OR
Explain the elements of delegation of authority.

24. “Coordination is required in all the functions of management.” 3

Explain.

25. Read the following text and answer question no. I-IV on the basis of 4
the same: While going through the newspaper, Reena who had
recently completed her MBA (Finance), came across the Situation
Vacant section. Ongoing through it, she found the following:

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 KP Enterprises require a Finance Manager Qualification:
Master's Degree in Finance
Competency: Knowledge of finance and commercial activities
Experience: Minimum four years' experience of working in the
same field
Salary commensurate with qualification and experience.
Apply to Jatin, the HR manager, KP Enterprises, Sector 18,
Noida within 7 days.

Although Reena was a fresher with no work experience as such, still

she applied for the post. After 10 days of sending her application, she
received a mail from Mr Jatin, the HR Manager of KP Enterprises,
stating that since she did not meet their criterion, hence her
application is not accepted. However, in future if they have any
requirement, they will contact her.

After around 7 months, Reena once again received a mail from KP

Enterprises, stating that the company recruiting newly qualified
personnel. Since they had Reena's name in their database, so she can
come for an interview.

I. By giving the details of the requirements in the Situation Vacant

section, which function of management is performed by KP
Enterprises?
(a) Directing
(b) Planning
(c) Staffing
(d) Recruitment

II. After 10 days of sending her application, she received a mail from
Mr Jatin, the HR Manager of KP Enterprises, stating that since she
did not meet their criterion, hence her application is not accepted".

Under which step of the function identified above will Reena receive
this communication?

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 (a) Selection
(b) Placement and orientation
(c) Recruitment
(d) Estimating manpower requirement

III. After around 7 months, Reena once again received a mail from
KP Enterprises, stating that the company is recruiting newly
qualified personnel. Since they had Reena's name in their
database, so she can come for an interview".

Which method of external recruitment is adopted by KP Enterprises?

(a) Direct recruitment
(b) Casual callers
(c) Advertisement
(d) Campus recruitment

IV. Give one point of difference between recruitment and selection.

26. Read the following text and answer question no. I-IV on the basis of 4
the same:

Indira Ltd. is a company dealing in chemicals. The company is good

but it has noticed that their growth has been stagnated for last couple
of years. The top management calls for an emergency meeting. In the
meeting, the management laid the goal of increasing its sales by 20%
the coming year. For this they have outlined a series of activities to be
performed by each person. The people are told the activities they
have to perform. Thus the work is divided among individuals.

The efforts taken by the firm turn out to be very productive for the
organization and it attains its goal by the end of the year. The
newspapers and management institutes also praise the company for
its high standards of management. However, as time passes the size
of the organization grows and thus they think of bringing another
concept of management with a lot of precision. This concept of
management is not voluntary but rather based on a lot of clear cut
thinking in advance. The main idea is to reduce confusion among the
employees regarding any of the activities they have been assigned.

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 I. Identify the functions of management highlighted in the above
lines.
(a) Planning and Controlling
(b) Planning and Organizing
(c) Organizing and Controlling
(d) Controlling and Directing

II. Which concept of management is being discussed in the second

paragraph.
(a) Incentives
(b) Coordination
(c) Initiative
(d) Delegation

III. 'This concept of management is not voluntary but rather based on

a lot of clear cut thinking in advance."

Which characteristic of the concept identified in II above is

highlighted here?
(a) It is all pervasive function
(b) It is continuous process
(c) It is a mental exercise
(d) It is a deliberate function

IV. "The main idea is to reduce confusion among the employees

regarding any of the activities they have been assigned. What is
reflected about the concept identified in II above is referred
here?
(a) It integrates group efforts
(b) It facilitates functional differentiation
(c) It is a pervasive function
(d) All of these

27. Discuss four importance of Directing function of management in an 4

organization

28. Enumerate any four benefits of the process by which the aptitudes, 4

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 skills and abilities of employees to perform specific jobs are
increased.
OR
Name the mechanism that attempts to measure certain characteristics
of individuals in the process of identifying and choosing the best
person out of the number of prospective candidates for the job.
Enumerate any three of its types.

29. In Saarthak Steel several initiatives have been taken to further 4

improve the motivation levels of employees through designing jobs
that include greater variety of work content, providing certain
stability about future income and work, providing fringe benefits like
housing, medical aid, etc., allotment of shares in line with various
incentives. Identify and briefly explain the incentives being given by
the organization to the employees.

30. Munchkin Ltd. is a business unit engaged in manufacturing blankets 4

and quilts. Its business operations are affected directly by the
competitors, employees, customers, competitors and suppliers, which
are unique to their respective locations. In addition to this, individual
firms of this field are affected indirectly by the factors like the money
supply in the economy, outlook of government, composition of the
families, the technological changes, etc.

(a) Identify and state the feature of the concept discussed in the
above paragraph.
(b) Also, state any two points of importance of this concept.

31 India’s craft heritage continues because if its customs and traditions. 6

Crafts are used not only in the country by craftsmen in Rajasthan,
Gujarat and Assam but are also exported to USA, Germany, UK and
France. The volume of exports and imports give India an advantage
in balance of payments and the much needed foreign exchange
reserves. The Prime Minister desires that the handicraft industry
should be expanded by linking it with technology. Focus should be on
changing the manufacturing process, ensuring durability and adapting
innovations. Quoting the lines from the above para, explain three
dimensions of the business environment.

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32. Jaideep recently joined as the Managing Director of Tivori Ltd; an 6
apparel designing company. He observed that the company had a
number of experienced fashion designers on its payroll. They
regularly offered useful suggestions which were neither appreciated
nor rewarded by the company. Instead, the company outsourced its
services to some renowned fashion designers and paid them a good
compensation for their services. Because of this, the employees felt
disheartened and stopped giving useful suggestions.
(a) Identify the communication barrier discussed above.
(b) State the category of this communication barrier.
(c) Explain two other communication barrier of the same
category.

33. Briefly explain any three of the following techniques of Scientific 6

Management as given by
F.W. Taylor:

a) Method study
b) Functional foremanship
c) Standardization
d) Differential piece wage system

OR

Briefly explain any three of the following principles of management

given by Henry Fayol:

a) Unity of command
b) Equity
c) Remuneration
d) Initiative

34. ‘The pros and cons of each alternative need to be weighed.’ Name 6
and briefly explain the logical steps in the process of planning which
are followed by a manager before performing the step highlighted in
the above statement.

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