Model Question Paper-1
Business Studies (New Pattern)
3 Hours
80 Marks
1. Name the process of designing and maintaining an environment in which individuals working
together in groups efficiently accomplish selected aims.
(1)
2. To meet the objectives of the firm, the Asian Paints contributed large amount of funds to enable
farmers to use local resources effectively. Identify the management objective it tried to achieve.
(1)
3. What do you mean by primacy of planning?
(1)
4. Define ‘organising’ as a process.
(1)
5. For optimal procurement of funds, a finance manager identifies different available sources and
compares those in terms of costs and associated risks. Identify and state the concept highlighted in
the above lines.
(1)
6. Cost of debt is less than cost of equity. Still a company cannot go with entire debt. Why?
(1)
7. Palak went to a shopkeeper to buy a hair oil. The shopkeeper forced her to buy a particular brand of
hair oil out of various available brands, irrespective of the willingness of Palak. Which ‘Right’ of
Palak, as a consumer, has been violated?
(1)
8. Ayesha is manufacturing lunch boxes for school-going children. To maximize profit she decided to
improve the quality and added a warmer for the lunch boxes. Due to this improvement in the
product, the sale is increasing day by day. Identify the marketing philosophy involved.
(1)
9. Name the concept of management which helps a manager to extend his area of operations as
without it, his activities would be restricted to only what he himself can do. Give two principles of
this concept of management.
(3)
10. Name the methods of recruitment in the following cases:
a. A company gets applications on and off even without declaring any vacancy. However, as
and when the vacancy arises, the company makes use of such applications.
b. Casual vacancies of unskilled or semi-skilled jobs when there is a rush of order of when some
permanent workers are absent.
c. Recruitment by which most of the senior positions of the industry as well as commerce are
filled.
(3)
11. Name the element of directing in which a manger maintains good inter-personal relations with his
subordinates and motivate them to contribute to achieve organizational objectives. State its four
features.
(3)
12. Prabhakar purchased an ISI mark electric iron from ‘Bharat Electricals’. While using he found that it
was not working properly. He approached the seller and complained for the same. The seller
satisfies Prabhakar by saying that he will ask the manufacturer to replace this iron. The manufacturer
refused to replace and Bharat Electricals decided to file a complaint int eh consumer court.
a. Can ‘Bharat Electricals’ do this. Why?
b. Who can file a complaint in this case?
c. Name the consumer right which can be exercised.
(3)
13. Give the meaning of the following money market instruments:
14.
15.
16.
17.
18.
19.
a. Certificate of deposit; and b. Commercial Bill.
(3)
The Trading Procedure on Stock Exchange has been replaced by on-line screen based electronic
trading system. This is mainly done to eliminate problems like theft, fake/forged transfers, transfer
delays and paper work associated with share certificates or debentures in physical form. This is a
process where securities held by the investor in the physical form are cancelled and the investor is
given an electronic entry or number so that he/she can hold it as an electronic balance in an amount.
This has increased the equity cult among the people.
a. Identify and state the process mentioned above.
b. What is the most important requirement for the process identified in (a)?
c. State any one value which you think has enhanced cult in the society.
(4)
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
behaviour 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 competitor imitated the products.
The products of the competitor were not accepted by the consumer as it was a status symbol to buy
the products of ABC Crackers Ltd. because of their quality.
a. Identify and explain the product-related decision because of which consumers preferred the
products of ABC Crackers Ltd.
b. Also identify any one value which ABC Crackers Ltd. wanted to communicate to the society.
(4)
Ms. Neeta recently completed her Post-Graduate Diploma in Human Resource Management. A few
months from now a large steel manufacturing company appointed her as its Human Resource
Manager. As of now, the company employs 800 persons and has an expansion plan in hand which
may require another 200 persons for various types of additional requirements. Ms. Neeta has been
given complete charge of the company’s Human Resource Department.
a. State any two functions she must be performing.
b. What problems do you foresee in her job? What steps is she going to take to perform her
job efficiently?
(4)
‘Understanding of environment by business managers enables them not only to identify and
evaluate, but also to react to the forces external to their firms.’ In light of the statement, explain by
giving any four points why in the present day competitive market, it is essential for a business
enterprise to remain alert and aware of its environment.
(4)
The court passed an order to ban polythene bags as
a. The bags are creating many environment problems which affect the life of people in general.
b. Society in general is more concerned about quality of life.
The Government decided to give subsidy to jute industry to promote this business.
Innovative techniques are being developed to manufacture jute bags at low rates.
Identify any four different dimensions of Business Environment by quoting the lines from the above
particulars.
(4)
In ‘Chak De India’ movie, Shahrukh Khan becomes the coach of the girls’ hockey team. He knows
that he has to prepare the girls for the international hockey matches and bring the world cup after
winning. For this he prepares a long-term plan and thinks the ways how to beat the competitors. He
coaches the girls to play in different ways like defensive, offensive, etc. At the outset of a match he
20.
21.
22.
23.
24.
explains who will open the match, and how the ball will be passed by one player to another step by
step.
Identify four types of plan that are highlighted in the above case, quoting the lines from it.
(4)
A company manufacturing consumer goods has grown in size. It was a market leader but with
changes in economic environment and with the entry of MNCs its market share is declining. The
company was following a centralized business model as even the minor decisions were in the hands
of top level. Before 1991 this model was suitable for company but now the company is under
pressure to reform.
What changes should the company bring about in order to retain its market share? Give its three
points of importance.
(5)
To satisfy social, esteem and psychological needs which type of incentives are needed? Explain any
four such incentives.
(5)
Airtech Ltd. is manufacturing mobile phones both for domestic Indian market as well as for export. It
had enjoyed a substantial market share and also had a loyal customer following. But lately is has
been experiencing problems because its targets have not been met with regard to sales and
customer satisfaction. Also mobile market in India has grown tremendously and new players have
come with better technology and pricing. This is causing problems for the company. It is planning to
revamp its controlling system and take other steps necessary to rectify the problems it is facing. It
also decides to offer its basic models of mobile phones at 50% discount to the poor people.
a. State any two benefits the company will derive from a good control system.
b. How can the company relate its planning with control in this line of business to ensure that
its plans are actually implemented and targets attained.
c. Give the steps that the company should follow to remove the problems it is facing.
(5)
Explain the following principles of Scientific Management:
a. Science not rule of thumb
b. Co-operation not Individualism
(6)
Krishna Ltd. is manufacturing steel at its plant at Noida. Due to economic growth, the demand for
steel is also growing. The company is planning to set up a new steel plant at Gurgaon. It needs `800
crore to start the new plant. It decides to raise `300 crore through debentures, `200 crore through
long-term loan from banks and `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 financial decision involved when the company decides to raise `800 crore from
different sources of funds.
d. How will the dividend decision of Krishna Ltd. be affected? Explain.
(6)
25. A mobile company is launching a new hi-tech mobile phone in the market. What will be the role of
public relations department to promote it? Explain any six points.
(6)