KENDRIYA VIDYALAYA SANGTHAN, GURUGRAM REGION

SAMPLE PAPER 2018

BUSINESS STUDIES (054)

CLASS-XII

TIME ALLOTED: 3.00 HRS M.M.: 80 Marks

1 / The production manager of a company is trying to produce goods with minimum cost. Name the concept which is being focused by management. / 1
2 / Tejas, a worker, is given a target of assembling two computers per day. Due to his habit of doing things differently, an idea struck him which would not only reduce the assembling time of computers but would also reduce the cost of production of the computers. Tejas’s supervisor instead of appreciating him, ordered him to complete the work as per the methods and techniques decided earlier.
The above para describes one of the limitations of planning function of management. Identify and write that limitation. / 1
3 / Kritika is posted at lower level management at ‘libracostmeticspvt.Ltd.’The daily sale of the company is about Rs.50 lakhs only. She has given her responsibility that the production work of the company should continue uninterrupted. The managing director has asked her to focus her attention especially on the speed and quality of production she is doing her work efficiently. Her reputation is that of a successful leader. She takes every decision afterdiscussing it with all the concerned persons. Her subordinates are happy with her.
Identify the leadership style adopted by kritika. / 1
4 / Name the kind of monetary incentive in which employees are offered company’s shares at a price lower than the market price. / 1
5 / When is Financial Leverage favorable? / 1
6 / Prerak Highways a "Tourist Bus Service", whose bookings runs in advance, is well established and popular in the market.
State whether the working capital requirement of the firm would be 'less or more'. Give reason in support of your answer. / 1
7 / SEBI recently called for information and issued a show cause notice to NSE and its 14 officials seeking explanation on the preferential access allegations at the exchange’s Co-location facility. State the function that SEBI performed by doing so. / 1
8 / Reena bought a washing machine from Rama Electric Store. When she was washing the clothes, she got electrical shock. Severely affected, she was immediately admitted to the hospital. Hospital charged Rs 3 Lakhs for the required treatment.
Where a complaint can be filed against the Rama Electric Store in this case? / 1
9 / ‘Daivki hospital’ is a famous company which provides health services. It has a great market share. Last year, in no time, several MNCs arrived. This fact caused a great fall in the companies business. The whole responsibility of finding the solution of this problem fell on the shoulders of General Manager. Now in order, to keep himself away from the routine activities of the company, he gave some of his authorities to his departmental managers. He gave them this freedom also that if they wanted, they could give some of these authorities to their own subordinates. The departmental managers were already feeling themselvesoverburdened with the workload. Therefore, they handed over some of their authorities to their subordinates. As a consequence of this, on the one hand, General Manager got time to solve the serious problems and, on the other hand, the feeling of responsibility was aroused in the subordinates. Within a few days the growth rate of the company started rising.
Identify the concept of management described in the paragraph given above and also explain the two points of its importance spoken about here. / 3
10 / Which process prepares a blue print of an organizations future preparations relating to finance? Give any tho reasons why this process is needed? / 1+2
11 / Mr. Yashpal, is human resource manager in HFCL Ltd. He is looking after 500 employees of the company. As for now, the company has some expansion plan in hand for which it may require another 200 persons. The company gives equal opportunities to Men and Women, and strives to fulfil social and esteem needs of its employees.
(A) State any two functions, Mr. Yashpal must be performing.
(B) Identify the values highlighted in the above case. / 2+1
12 / Disha, Neena and Meena were friends from college days. They regularly meet and discuss their business ideas on customer satisfaction, product design, selling techniques, social concerns etc.
In one of such meetings, Disha drew the attention of Neena and Meena towards the exploitation of consumers. She told that most of the sellers were exploiting the consumers in various ways and were not paying attention towards the social, ethical aspects of Marketing.
Neena told that their team were under pressure to satisfy the consumers but stated that Consumer would not buy unless they were adequately convinced and motivated for the same.
Meena stressed that company cannot achieve its objectives without understanding the needs of the customer. It was the duty of the businessman to keep consumer satisfaction in mind because business is run by the resources made available to them by the society. She further stated that she herself took into consideration the needs of the customers.
Identify the various type of thinking that guided Disha, Neena and Meena in the marketing efforts of their business. / 3
13 / GYO(Gurgaon Youth Organisation) organized a visit to an old age home, to inculcate the habit of social work among them. The visit revealed that living conditions of the inmates of the old age home were not hygienic. So the GYO members decided to clean the premises. During their cleaniness drive, they realised that the old age home also required Pest Control. They showed to the inmates of the old age homes a pamphlet of the proposed pest control product which promised easy, inexpensive and long lasting pest control. Thereafter the pest control was carried out. It worked out for a fortnight. But due to their dismay, the affect started wearing off. GYO contacted the pest control company which keep on postponing their visit. After waiting for a month, GYO filed a case in the consumer court.
The consumer court was satisfied about the genuineness of the complaint and issued necessary directions to the pest control company.
State any three directions that might have been issued by the court. / 3
14 / Prag and sons is a manufacturer of Potato Chips. It decided to increase profits by at least 25% in the next quarter. It has many options:
(i) To increase the working hours of laboures without additional payment.
(ii) To employ labour from the local community.
(iii) To sell its product outside the school and colleges.
It opted the (ii) and (iii) options to achieve the target.
(a) Identify the function of management described in the above para.
(b) State the steps of the process involved in the function of management identified in (a) quoting the lines from the above para. / 4
15 / Sargam is working in a company on permanent basis. One fine day she fell ill and had to take leave from her work. No one showed concern and enquired about her health. Sargamrealised that she was fulfilling only some of her needs while some other needs still remained to be fulfilled.
(i)by quoting the lines from the above para, identify the needs of Sargam which she is able to fulfil.
(ii) also explain two other needs of Sargam followed by the above needs, which still remained to be satisfied. / 4
16 / State the first four steps which are involved in the screen based trading for buying and selling of securities in the secondary market. / 4
17 / A company was marketing 'water purifiers' which were very popular due to their quality and after sales services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits and company ignored the after sales services. As a result its relations with the customers got spoiled and the image of the company was damaged in the public. Top management became concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring the after sales service was its reason. Therefore the company took all possible measures to protect and promote its favorable image in the eyes of the public. As a result the goodwill of the company improved in the society.
  1. Name and state the communication tool used by the marketer in the above case to improve its image
  2. Also explain role of the tool as identified in part (a)
/ 4
18 / ABC Crackers Ltd., a fire-cracker manufacturing company launched some new products on the eve of Diwali in the market, which attracted many buyers. To meet the increased demand the company employed people from nearby villages where there is a lot of unemployment. Because of the good behavior of the management with the employees, more and more people wanted to join the company. As the products were in great demand in the market, a competetitor imitated the products. The products of the competitor were not accepted by the consumers as it was a status symbol to buy the products of ABC Crackers Ltd. because of their quality.
  1. Identify and explain the product-related decision becasue of which consumers preferred the products of ABC Crackers Ltd.
  2. Also identify any two values which ABC Crackers Ltd. wanted to communicate to the society.
/ 4
19 / Ultra paint co. which is manufacturing paints had been enjoying a prominent market position as it is manufacturing best quality paints made timely payment of taxes to government. It assembled various inputs like finance, machines, raw materials, etc. from its environment but since last year it has been dumping its untreated poisonous waste on the river bank which has created many health problems for the people. As a result, the court passed an order to seal the manufacturing unit of the company.
(a) Identify any two dimension of business environment mentioned in above case by quoting line from it.
(b) State any two points of importance of business environment. / 2+2
20 / Describe any five reasons which clarify that management is gaining importance day –by day. / 5
21 / Rajat limited produces hosiery items for export purposes. “john player” a foreign import company, has sent a complaint that the cloth used in the shirts in the January 2015 dispatched is substandard.
a) What management function is responsible in above case?
b) Explain the process of above function. / 5
22 / Taj International Ltd. earned a profit of Rs 50 Crores. Ritu the finance manager wants to decide how to appropriate these profits. Identify the decision that Ritu will have to take and discuss four factors which help her in taking this decision. / 5
23 / A major insurance company handled all recruiting, screening and training processes for data entry/customer service representatives. Their competitor was attracting most of the qualified, potential employees in their market. Recruiting was made even more difficult by the strong economy. This resulted in the client having to choose from candidates who had the ‘soft’ skills needed for the job, but lacked the proper ‘hard’ skills and training.
(i) As an HR manager, what problems do you see in the company?
(ii) How do you think it can be resolved? / 6
24 / M & F Ltd. is doing the business of food processing and, selling its products under a popular brand “PURE” enjoying good quality with reasonable prices. So, Company is expanding its business and at the same time new players are also coming to cash in this new trend. In order to keep its market share intact the company directed its existing workforce to work overtime. But this resulted in many problems. Due to increased pressure of work the efficiency of the workers declined. Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were previously working on one product were also made to work on two or more products. This resulted in a lot of overlapping and wastage of resources. Sometimes the workers are feeling frustrated and disobeying, even the managers are not taking interest to solve the problems due to distrust on each other. The quality of the products is beginning to decline and market share is also start to decrease. Actually the company had implemented changes without creating the required infrastructure.
Identify and explain the Principles of Management that are being violated by the company / 6
25 / Mohit is the managing director of ‘ Prahas’ a company which manufactures soft toys. The organizational structure has separate department for production, finance, marketing and human resources.
Name the organization structure of the organization and also discuss its suitability.
State any two advantages and two disadvantages of such structure. / 6

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