Students can access the CBSE Sample Papers for Class 12 Business Studies with Solutions and marking scheme Term 2 Set 10 will help students in understanding the difficulty level of the exam.

CBSE Sample Papers for Class 12 Business Studies Term 2 Set 10 for Practice

Time allowed: 2 Hours
Maximum Marks: 40

General Instructions:

  • This is a Subjective Question Paper containing 12 questions.
  • This paper contains 4 questions of 2 marks each, 4 questions of 3 marks each and 4 questions of 5 marks each.
  • 2 marks questions are Short Answer Type Questions and are to be answered in 30-50 words.
  • 3 marks questions are Short Answer Type Questions and are to be answered in 50-80 words.
  • 5 marks questions are Long Answer Type Questions and are to be answered in 80-120 words.
  • This question paper contains Case/Source Based Questions.

Question 1.
What is meant by recruitment by demotion? (2)

Question 2.
Why induction is not required in the internal source of recruitment? (2)

Question 3.
In a company, employees achieve quantitative standards but could not attend qualitative standard. Which values have been ignored here? (2)

Question 4.
How do rising prices affect the requirement of working capital of an organisation? (2)

Question 5.
Saqib Ltd. is a large credit worthy company operating in the Kashmir Valley. It is an export oriented unit, dealing in exclusive embroidered shawls. The floods in the Valley have created many problems for the company. Many craftsmen and workers have been dislocated and raw material has been destroyed.

The firm is therefore, unable to get an uninterrupted supply of raw material, and the duration of the production cycle has also increased. To add to the problems of the organisation, the suppliers of raw material who were earlier selling on credit are asking the company, for advance payment or cash payment on delivery.

The company is facing a liquidity crisis. The CEO of the company feels that taking a bank loan is the only option with the company to meet its short term shortage of cash. As a finance manager of the company name and explain the alternative to bank borrowing that the company can use to resolve the crisis.
“Money market is essentially a market for short-term funds’. In the light of this statement state any three features of money market (3)

Question 6.
How manager uses employees recognition programs to motivates his subordinates? (3)

Question 7.
“Managerial functions cannot be carried out without an efficient system of communication.” Do you agree? Give any three reasons in support of your answer. (3)

Question 8.
Kunal joined as a shop level manager in the Production department of a textile company in the year 2005. Because of his good work, he became the Deputy Production Manager of the company in the year 2010. He had status and prestige and was well-respected by all in the company. On 1st March, 2019, he was promoted as the General Manager of the company. Kunal was very happy on his promotion as now he had become what he was capable of becoming. As a good manager, Kunal decided to motivate his subordinates, after understanding the Need Hierarchy theory which is based on various assumptions. He realised that people’s behaviour is based on their needs and the manager can influence the behaviour of his employees by satisfying their needs.
(a) One of the assumptions of Need Hierarchy theory is stated in the above paragraph. State the other three assumptions of this theory.
(b) State the needs of Kunal which are being satisfied through promotion. (3)

Question 9.
‘Entertainment India Ltd.’ has been incorporated with the objective of entertaining people by organising festivals, programmes and other similar events depicting the rich cultural heritage of the country. The company management has renowned personalities from the field of art, literature and culture. They decided to give a platform to young budding musicians, poets and artists.

The company decided its organisational structure by grouping similar jobs together. Thereafter, the heads of different departments were also appointed. Nisha, one of the heads, did an analysis of the number, type and qualification necessary for people to be appointed.

The information generated in the process of writing the job description and the candidate profile was used to develop ’Situations vacant’ advertisement. This was published in print media and flashed in electronic media. This brought in a flood of response. Explain the other steps which Nisha has to perform to complete the process being discussed above.
Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for itself and had been doing well. It was known for timely completion of orders. The Production Manager, Ms. Kanta was efficiently handling the processing of order and had a team of fourteen motivated employees working under her. Everything was going on welL Unfortunately she met with an accident.

Umang knew that in the absence of Ms. Kanta, the company may not be able to meet the deadlines. He also knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of business and goodwilL So, he had a meeting with his employees in which accurate the speedy processing of orders was planned.

Everybody agreed to work as team because the behaviour of Umang Gupta was positive towards the employees of the organisation. Hence everyone put in extra time and efforts and the targets were met on time. Not only this, Umang visited Ms.Kanta and advised her to take sufficient rest. Identify the leadership style of Umang Gupta Also state any four qualities of a good leader. (5)

Question 10.
Himesh, after completing his graduation, started working with a multinational company in Delhi. But due to ill health of his parents, he had to go back to his village. There he noticed that the villagers were literate but ignorant about their rights. Many vegetable vendors were using stones as weights to sell their vegetables. Some shopkeepers were selling food items without having the ‘FPO Mark’. The villagers did not find anything wrong with these practices. So, to create awareness among the villagers, Himesh decided to publish a weekly journal ‘Jan Jagriti.’ State the right which Himesh has exercised by doing so. State two more rights of a consumer under the consumer protection Act. (5)

Question 11.
Red Sea Pvt. Ltd was established to deal in securities. It was registered as a stock broker with National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to trade in securities listed at these exchanges, it is also a depository participant with CDSL and NSDL In the first three years, it developed its business successfully.

After that the composition of Board of Directors changed. Some customers complained to the customer care centre of the company that shares purchased by them and for which the payment has been duly made, were not transferred to their D’mat Accounts by “Red Sea Pvt. Ltd”.

The executive of customer care centre promised the aggrieved customers that their shares will be transferred to their respective D’mat Accounts very soon. But the company delayed the matter and didn’t transfer the shares of the customers to their D’mat Accounts. This eroded investors confidence and multiplied, their grievances.
(A) Identify the step of trading procedure in a stock exchange which has not been followed by “Red Sea Pvt. Ltd”.
(B) Name the Apex statutory body of capital market to whom customer can complain to redress their grievances.
(C) Write two values not followed by Red Sea Pvt. Ltd. (5)

Question 12.
Suhasi got Rs. 1 crores after selling her parental property which she had got as a gift from her grandmother. Her friend advised her to invest in securities in the stock market. Suhasi was unaware of the procedure for the same.

Her friend introduced her to a stock broker, who was registered with the National Stock Exchange. She approached the broker. The broker guided her to open a DEMAT account with a Depository, as well as a Bank account. Suhasi opened a Bank account & DEMAT account with Exin Bank.

(A) identify the steps in the trading procedure for buying and selling of securities which have been discussed above.
(B) State the next four steps of the trading procedure.
How does floatation cost and return on investment affect the choice of capital structure of an enterprises? (5)