KENDRIYA VIDYALAYA SANGATHAN, CHENNAI REGION
CLASS XII COMMON PRE-BOARD EXAMINATION 2015-16
SUBJECT: BUSINESS STUDIES
TIME ALLOTED: 3 Hrs
MAX. MARKS: 80
General Instructions:
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i)
Answers to questions carrying 1 mark may be from one word to one sentence.
ii)
Answers to questions carrying 3 marks may be from 50-75 words.
iii)
Answers to questions carrying 4-5 marks may be about 150 words.
iv)
Answers to questions carrying 6 marks may be about 200 words.
v)
Attempt all parts of a question together.
‘Manager applies his knowledge of management in his own way’. What aspect of the
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nature of management does this statement indicate?
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Identify the type of plan when a company has to take the following decisions:
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Should the company make or buy its requirements of packages, transport services,
printing of stationery, water and power supply and other items? How should vendors
be selected for procuring supplies? How many suppliers should the company make
purchase from?
3
“If an organization relies heavily on internal sources of recruitment, it faces the
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problem of inbreeding.” What is the meaning of inbreeding in this context?
4
Maslow defines one of the needs in the need hierarchy as the “Desire to become
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everything one is capable of becoming.” Identify the need.
5
What is ‘Vertical communication’?
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6
A decision is taken to distribute a certain portion of the profit after tax among the
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shareholders. What is this decision called?
7
Which money market instrument is used for inter bank transactions?
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8
It is clearly stated in the legal framework of India that the information regarding the
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product, its content, date of manufacturing etc, should be printed on the package.
Identify the right of consumer highlighted here.
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Formal organization is better than informal organization- Do you agree with the
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Statement? Give three reasons for your answer.
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Amit and Mikki are working in the same organization but in different departments.
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One day Mikki informed Amit that due to computerization some people are going to
be retrenched from the organization.
Name which type of communication is this? State any two limitations of this type of
Communication.
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Explain three levels of packaging.
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12
Write short notes on Depository Service.
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13
What do you mean by ‘Management by Exception’ and ‘Critical point control’?
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14
‘Just as authority is the key to the Manager’s job, delegation of authority is key to
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organization’. In the light of this statement, discuss the significance of delegation of
authority.
15
‘Personal selling plays a very important role in the marketing of goods and services’.
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Do you agree? Explain any four reasons in support of your answer.
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Mention any four remedies available to consumers.
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17
Explain any four impacts of Government policy changes in business and industry.
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18
Mr. Neelesh is working as a Production Manager in V Ltd. His subordinates are
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mostly engineers and qualified technicians. As a manager, he is very strict, does not
listen to any suggestions without any questions and does not allow them to give
suggestions.
(a) What leadership style does the manager follow?
(b) Is such leadership style beneficial for the company? Explain
(c) State any one value not being overlooked by him.
19
Identify and explain the method of floatation in the following cases:
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(i) X Ltd offered the entire new issue of shares to LIC.
(ii) Sunil has 500 shares in Y Ltd. He received an offer to buy 1 share of Y Ltd. for
every 5 shares held by him.
20
Supreme Ltd is in the business of textiles. It had manual accounting system which
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required a lot of paper work and was very time- consuming. In order to save paper
and time of employees and increase profitability, the company introduced computerbased accounting system.
Instead of recruiting computer professionals having knowledge of accounting from
outside, the company provided suitable training in computer operation to its existing
accounting employees. At the same time, the company raised their salary according
to new work requirements. Surplus employees of accounting were transferred to other
departments which introduced computerized system and had vacancies.
(i) Identify and explain the objectives of management which are mentioned in the
question.
(ii) Identify any two values which the company wanted to communicate.
21
Babita Ltd is engaged in manufacturing machine components. The target production
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is 250 units per day per worker. The company had been successfully attaining this
target until two months ago. Over the last two months it has been observed that daily
production varies between 200-210 units per worker.
(a) Name the function of management and identify the step in the process of this
function which helped in finding out that the actual production of a worker is less
than the set target.
(b) To complete the process of the function identified in (a) and to ensure the
performance as per targets, explain what further steps a manager has to take
22
A company manufactures paper plates and bowls. It produces one lakh plates and
bowls every day. Due to a forthcoming local festival, it has got an urgent order of
extra 50,000 plates. Advise how the company will fulfill its order and which methods
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of recruitment will you suggest. Write any two merits of this method.
23
K ltd is manufacturing steel at its plant at Noida. Due to economic growth, the
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demand for steel is also growing. The company is planning to set up a new steel plant
at Gurgaon. It needs Rs.800 crore to start the new plant. It decides to raise Rs.300
crore through debentures, Rs.200 crore through long-term loan from banks and
Rs.200 crore by issue of equity shares to the public. It decided to finance the
remaining amount by utilizing its reserves and surplus.
(a) State the importance of financial planning for this company.
(b) What is the capital structure of this company? Explain.
(c) Identify the decision involved when the company decides to raise Rs.800 crore
from different sources of funds.
(d) How will the dividend decision of K Ltd. be affected? Explain.
24
Excel Product Ltd (EPL) is in the business of manufacturing and marketing a number
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of consumer convenience products – bathing soaps, detergents etc. Now, it wants to
add toothpaste in its existing products. EPL conducted a market survey to identify the
scope of launching a new brand in toothpaste market.
The major findings of the survey are like this :

About 80% of toothpaste market is being shared by Colgate and Hindustan
Unilever almost in equal proportion.

Colgate has 70 versions of toothpaste

Hindustan Unilever has 50 (Close-up 32 and Pepsodent 18).

Balsara has 5% market share with three brands – Promise (12 versions), Babool
(8 versions) and Meswak (10 versions).

The remaining market is shared by a number of brands like Forhans, Cibaca,
Aqua fresh, Prudent, Choice, Neem Emform, and Effermint etc.
(i) What factors must be considered by the company while choosing a brand name for
its toothpaste, so that it becomes effective?
(ii) For fixing the price of toothpaste, what factors should the company take into
consideration?
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A company engaged in the manufacture of a popular brand of toys, has been enjoying
good market reputation. It has functional organizational structure with separate
departments for production, Marketing, Finance, Human resources and Research and
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Development.
Lately to extend its brand name and also to cash in on the new business opportunities
it is thinking to diversify into manufacture of a new range of electronic toys, mini
computers and laptops.
(i) What type of organizational structure would you recommend in this case?
(ii) What benefits can the company get by shifting over to the structure recommended
by you?