CBSE Class XII Business Studies All India Board Paper Set 1 - 2018

Time: 3 hrs.

Max. Marks: 80

General Instructions:

1. Answers to questions carrying 1 mark may be from one word to one sentence.
2. Answers to questions carrying 3 marks may be from 50-75 words.
3. Answers to questions carrying 4-5 marks may be about 150 words.
4. Answers to questions carrying 6 marks may be about 200 words.
5. Attempt all parts of a question together.

Question 1

Define 'Decentralisation'. [1]

Question 2

Give the meaning of 'Method' as a type of plan. [1]

Question 3

Saurabh decided to start a chocolates manufacturing business. He set then target of earning 10% profit on sales in the first year. As a good businessman, he was concerned about the future of the business, which was uncertain. He gathered information that the demand for chocolates is increasing day-by-day. He used this information as the base for future planning and shared it with his team. On the basis of the gathered information, he scheduled a meeting in the following week to find innovative ways to achieve the objectives.

List the first two steps, which have been followed by Saurabh that are related to the process of one of the functions of management. [1]

Question 4

In the paint industry, various raw materials are mixed in different proportions with petroleum for manufacturing different kinds of paints. One specific raw material is not readily and regularly available to the paint manufacturing companies. Bonler Paints Company is also facing this problem and because of this there is a time lag between placing the order and the actual receipt of the material. But once it receives the raw materials, it takes less time in converting it into finished goods.

Identify the factor affecting the working capital requirements of this industry. [1]

Question 5

An investor wanted to incest `20,000 in Treasury Bills for a period of 91days. When he approached the Reserve Bank of India for this purpose he came to know that it was not possible.

Identify the reason why the investor could not invest in the Treasury Bill. [1]

Question 6

Why is the understanding of 'Marketing Management Philosophies' important? [1]

Question 7

Give the constitution of the District Consumer Disputes Redressal Forum under the Consumer Protection Act, 1986. [1]

Question 8

'Buy one get one free' is printed on the label of the package of a mosquito repellant.

State the labelling function being performed by this statement. [1]

Question 9

Differentiate between formal and informal organisations on the basis of (i) origin, (ii)

authority, and (iii) flow of communication. [3]

Question 10

State the steps in the selection procedure, after the employment interview and before the job offer. [3]

Question 11

Sandhya is a successful manager at Manisons Enterprises. She has a team of twelve people working under her. She encourages them to set their own objectives and take decisions. She respects their opinions and supports them, so that they can perform their duties and accomplish organisational objectives. To manage and exercise effective control she uses forces within the group.

As an intelligent manager, at times, she also makes use of positive aspects of informal communication. This way, she is able to unify diverse interests and ensure that targets are met.

1. There are many theories and styles of influencing people's behaviour. Identify the style used by Sandhya which is based on the use of authority.
2. State two positive aspects of the communication discussed above, which Sandhya is using as an intelligent manager. [3]

Question 12

The Return on Investment (ROI) of a company ranges between 10-12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt:

Option 'A': Rate of interest 9%

Option 'B': Rate of interest 13%

Which source of debt, 'Option A' or 'Option B', is better? Give reasons in support of your answer. Also state the concept being used in taking the decision. [3]

Question 13

Explain briefly any two points of importance of consumer protection from the point of view of business. [3]