GRIS/MID TERM/BST(054)/SET-1/2025-26

G. R. INTERNATIONAL SCHOOL
MID TERM EXAMINATION (2025-26)
CLASS- XII
BUSINESS STUDY (054)
Roll.No.

GRIS/MID TERM/BST(054)/SET-1/2025-26 1 P.T.O

 TIME:3hr Max. Marks:80

General Instructions:
Read the following instructions carefully and follow them :
1. This question paper contains 34 questions. All questions are compulsory.
2. Questions number 1 to 20 are multiple choice questions. Each question carries 1 mark.
3. Questions number 21 to 24 are short answer type questions. Each question carries 3 marks.
4. Questions number 25to30 are Long answer type-I questions. Each question carries 4
marks.
5. Questions number 31to 34 are Long answer type-II questions. Each question carries 6 marks.
6. There is no overall choice. However, an internal choice has been provided in few

Section A (20 × 1 = 20 Marks)

1. The project managers in an organisation set targets, allocate work, motivate employees, and
evaluate performance simultaneously. Name the characteristic of management being highlighted.
(a) Management is multidimensional (b) Management is a continuous process
(c) Management is intangible (d) Management is goal-oriented

2. Henri Fayol’s principle of “Discipline” is based on the nature of principles of management as:
(a) Flexible (b) Universal applicability
© Formed by practice and experimentation (d) Mainly behavioural

3. Assertion (A): Motivation ensures willingness of employees to

work. Reason (R): Motivation helps satisfy needs of individuals.
Choose the correct option:
(a) A and R both true, and R explains A
(b) A and R both true, but R does not explain A
(c) A true, R false
(d) A false, R true

4. Statement I: Principles of management are guidelines for managerial

action. Statement II: Principles of management are rigid rules.
Choose the correct option:
(a) Both statements are true
(b) Both statements are false
(c) I true, II false
(d) I false, II true

5. The HR Manager of Beta Ltd. published job openings on the company’s website and social media handles
to attract applications. Name the step in the staffing process.

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 (a) Selection (C) Recruitment
(b) Training (d) Placement
Shree Automobiles Ltd. introduced electric cars in India. The government announced a subsidy for
manufacturers of electric vehicles, and several newspapers praised the company’s initiative. Competitors
also rushed to adopt new technology to survive in the market.

Q6. The dimension of business environment indicated by the subsidy is:

(A) Economic (c)Political
(B) Legal (d)Technological

Q7. Media praise for the company highlights which importance of business environment?
(A) Helps in coping with change (c)Enables firm to identify threats
(B) Helps in tapping resources (d)Improves performance

Q8. Assertion (A): Business environment is uncertain.

Reason (R): Changes in government policies and technology cannot be predicted accurately.
(A) Both A & R true, R explains A
(B) Both A & R true, R not explanation
(C) A true, R false
(D) Both false

Q9. (Picture of Maslow’s Hierarchy pyramid is shown – assume for exam)

Which level of Maslow’s hierarchy is achieved when a company offers retirement benefits and job security?

(a) Social needs (b) Safety needs

(c) Esteem needs (d) Self-actualisation

10. Arrange the following steps of organising in the correct order:

i) Assignment of duties
ii) Identification and division of work
iii) Establishing reporting relationships
iv) Departmentalisation
Options:
(a) ii, iv, i, iii (c)ii, i, iv, iii
(b) iv, ii, i, iii (d)i, ii, iii, iv

11. Which element of directing involves continuous watching of subordinates at work to ensure
they perform according to plans?
(a) Supervision (c)Motivation
(b) Leadership (d)Communication

12. A manager listens carefully to the grievances of his subordinates and allows free flow of ideas.
Which principle of directing is reflected here?
(a) Motivation (c)Effective communication
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(b) Unity of command (d)Use of informal organisation

13. Match the concepts in Column I with their meanings in Column II:
Column I | Column II
A. Coordination | i. Grouping activities and creating authority relationships
B. Organising | ii. Ensuring harmony of efforts towards goals
C. Planning | iii. Setting objectives and deciding future course
D. Leadership | iv. Influencing behaviour of people
Correct option:
(a) A-ii, B-i, C-iii, D-iv
(b) A-i, B-ii, C-iv, D-iii
(c) A-iv, B-iii, C-i, D-ii
(d) A-iii, B-i, C-ii, D-iv

14. Which limitation of planning is highlighted when sudden government policy changes make earlier
plans useless?
(a) Planning may not work in a dynamic environment (c)Planning reduces creativity
(b) Planning leads to rigidity (d)Planning is costly

15. Which step in staffing provides learning opportunities to employees for growth and
career advancement?
(a) Training and Development (c)Placement and Orientation
(b) Recruitment (d)Performance Appraisal

16. The communication network where each employee can directly interact with any other employee
is called:
(a) Chain (c)Wheel
(b) Free-flow (d)Circular

17. “When supervisors impose excessive checks and controls, employees lose initiative.” Which
limitation of controlling is highlighted?
(a) Costly process (c)Resistance to change
(b) Over-control (d)Difficulty in setting standards

18. Which nature of principles of management is highlighted when they can be modified according
to situations?
(a) Rigid (c)Universal applicability
(b) Flexible (d)Behavioural

19. Which function of management provides the basis for all other functions by deciding in advance
what to do?
(a) Planning (c)Directing
(b) Organising (d)Controlling

20. Statement I: Management is a continuous process.

Statement II: Management is concerned with achieving group objectives.
Choose the correct option:
(a) Both true (c)Both false
(b) I true, II false (d)I false, II true
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 Section B (4 × 3 = 12 Marks)
21. State any three limitations of planning.

22. Sapphire Garments Ltd. is a reputed apparel company. Recently, its management observed that
many employees lacked updated knowledge about sustainable fabrics and modern stitching techniques.
To overcome this problem, the HR department decided to organise a one-month in-house training
programme, inviting experts to conduct sessions and workshops. After the programme, the employees
showed greater efficiency, higher motivation, and improved job satisfaction.
(a) Identify the step in the staffing process highlighted above.
(b) State any three benefits of this step to employees.

23. State any three features of principles of management.

24. Samarth Steel Industries manufactures heavy machinery. The company employs more than 1,200
workers in its production unit. To ensure smooth functioning, it has appointed supervisors who regularly
monitor the work, guide workers, and resolve their day-to-day problems. These supervisors also report
to middle-level managers about production targets, absenteeism, and grievances of workers. At the
same time, they motivate employees to improve efficiency.
(a) Identify the level of management at which supervisors work.
(b) State any two functions performed at this level.

Section C (6 × 4 = 24 Marks)
25. The Production Manager of Navya Electronics Ltd. found that employees often ignored quality
standards while manufacturing LED bulbs. He reminded them that management principles serve
as guidelines to take decisions and improve efficiency.
(a) Identify the nature of principles of management highlighted in the above case.
(b) State any three points of importance of principles of management.

26. Future Vision Pvt. Ltd. is planning to expand its operations in South India. The managers are engaged
in preparing detailed blueprints of action, setting objectives for sales, and forecasting demand. At the
same time, they are aware that sudden changes in customer preferences and competitors’ strategies may
affect their plans.
(a) Identify the function of management being performed.
(b) Explain any three features of this
function. OR
Explain “planning reduces risk” and “planning provides direction.”

27. Workers of Super Auto Parts Ltd. were divided into departments like casting, assembling, welding,
and painting. Each department was supervised by an expert in that field. This helped in improving
productivity but sometimes created confusion among workers due to multiple instructions.
(a) Identify the technique of scientific management being used.
(b) State any three advantages of this technique.

28. The management of Zenith Textiles Ltd. wants to ensure that actual performance matches the
planned targets. The managers continuously compare the output with standards, identify deviations, and
take corrective actions. They also focus on preventing mistakes in future by revising plans and methods.
(a) Identify the function of management discussed above.
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(b) State any four points of importance of this function.

29. The HR Department of Bright Future Ltd. received 600 applications for 40 vacancies. After screening
applications, the company conducted tests and interviews. Finally, the department checked references
and verified past records of candidates.
(a) Identify the step in the staffing process being discussed above.
(b) Explain any three more steps that follow in the process to ensure the best selection.
30. Ecom Services Pvt. Ltd. is a large organisation offering delivery, packaging, and logistics services. The
management has grouped activities on the basis of functions such as operations, finance, and HR.
However, in another branch, activities were grouped on the basis of products like courier service,
warehouse service, and packaging service.
(a) Identify the two types of organisational structures described above.
(b) State any two differences between them.

Section D (4 × 6 = 24 Marks)
31. Rajdhani Power Ltd. decided to modernise its operations by adopting digital billing systems. The
managers prepared detailed plans for the next two years. However, due to sudden changes in
government policies and new technology in the industry, some plans became useless. Yet, managers feel
planning cannot be avoided.
(a) Identify the function of management highlighted above.
(b) Explain any five limitations of this function.
(c) Despite limitations, state one reason why it is still considered essential.

32. Ocean Wave Resorts Ltd. appointed Mr. Aryan as the team leader of its newly opened luxury resort in
Goa. He motivates his team members, guides them during difficult tasks, and influences them to
maintain high service standards. Employees admire his confidence and decision-making ability.
(a) Identify and explain the element of directing being performed by Mr. Aryan.
(b) State any four qualities of a good leader reflected in the above case.

33. The Director of TechVision Ltd. noticed that although the company had well-prepared plans,
employees were not motivated to work sincerely. The manager decided to adopt a style where he inspired
his subordinates, maintained communication, supervised their work, and provided incentives to achieve
better results.
(a) Identify the function of management discussed above.
(b) Explain any six features of this function.

34. Bright Electronics Ltd. faced the problem of low productivity and poor quality. Workers were
dissatisfied as there was no standard method of work. The management appointed a consultant who
studied the entire process and suggested simplification of work, proper training, and differential piece
wage system. He also introduced motion and time studies to avoid wasteful movements. Slowly, both
productivity and employee satisfaction improved.

(a) Identify any three techniques of scientific management applied above.

(b) Explain the importance of applying principles of management in organisations

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