Students can access the CBSE Sample Papers for Class 12 Business Studies with Solutions and marking scheme Term 2 Set 2 will help students in understanding the difficulty level of the exam.
CBSE Sample Papers for Class 12 Business Studies Term 2 Set 2 with Solutions
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.
Name and explain the method of training in which trainees learn on the equipments they will be using. (2)
Answer:
Vestibule training: Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. Actual work environments are created in a classroom and employees use the same material, files and equipment. This is usually done when employees are required to handle sophisticated machinery and equipment. Vestibule training can be classified as off-the-job method of training.
Question 2.
“Our assets walk out of the door each evening. We have to make sure that they come back the next morning”. Name and explain any two advantages of the function of management. (2)
Answer:
This statement relates to staffing function of management. Staffing is the process of determining the man’s power needed to meet the company’s objective and recruiting, selecting, training and developing the new and existing staff.
The advantages of staffing are: (Any two)
- Growth of enterprise: By appointing efficient staff, staffing ensures continuous survival and growth of the enterprise.
- Placing right person at the right job: It ensures higher performance by placing right person on the right job by proper recruitment and selection.
- Optimum utilisation of human resources: Through manpower planning and job analysis we can find out the number of employees and type of employees required in the organisation.
Question 3.
Why is it said that controlling is looking back? (2)
Answer:
Controlling is looking back as it is like a post-mortem of past activities to find out deviations from the standards established. Controlling is done with an aim to check the factors responsible for poor performance or deviation in the actual performance, so that such mistakes are not repeated in future and the organisation can achieve its predetermined objectives.
Question 4.
“Money market is essentially a market for short term funds” State any two money market instruments. (2)
Answer:
The money market instruments are: (Any two)
(1) Treasury Bill: Treasury Bill is basically an instrument of short-term borrowing by the Government of India maturing in less than one year.
(2) Commercial Paper: Commercial paper is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period.
(3) Call money: Call money is short term finance repayable on demand, with a maturity period of one day to fifteen days used for inter bank transactions.
(4) Certificate of Deposit: Certificate of deposit are unsecured, negotiable, short term instruments in bearer form, issued by commercial banks and development financial institutions.
(5) Commercial Bill: Commercial bill is a bill of exchange used to finance the working capital requirements of business firms.
Question 5.
How does directing facilitate introduction of needed changes in the organisation? (3)
Answer:
Directing facilitates introduction of needed changes in the organisation. Generally, people have a tendency to resist changes in the organisation. Effective directing through motivation, communication and leadership helps to reduce such resistance and develop required cooperation in introducing changes in the organisation.
For example, if a manager wants to introduce new system of accounting, there may be initial resistance from accounting staff But, if manager explains the purpose, provides training and motivates with additional rewards, the employees may accept change and cooperate with manager.
Question 6.
“Directing techniques must help every individual in the organisation to contribute to his maximum potential for achievement of organisational objectives.” Explain.
OR
“Training is used to indicate the process by which attitudes, skills and abilities of employees to perform specific jobs are increased.” Explain the benefits of training to employees. (3)
Answer:
This principle emphasises that directing techniques must help every individual in the organisation to contribute to his maximum potential for achievement of organisational objectives. It should bring out untapped energies of employees for the efficiency of organisation.
For example, a good motivation plan with suitable monetary and non-monetary rewards can motivate an employee to contribute his maximum efforts for the organisation as he or she may feel that their efforts will bring them suitable rewards.
OR
The benefits of training activity to the employees are as follows:
(1) Improved skills and knowledge due to training lead to better career of the individual.
(2) Increased performance by the individual help him to earn more.
(3) Training makes the employee more efficient to handle machines. Thus, less prone to accidents.
(4) Training increases the satisfaction and morale of employees.
Question 7.
Why is it said that controlling is a continuous activity? (3)
Answer:
Controlling is a continuous activity. It is a function that brings back the management cycle back to the planning function. The controlling function finds out how far actual performance deviates from standards, analyses the causes of such deviations and attempts to take corrective actions based on the same.
This process helps in formulation of future plans in the light of the problems that were identified and, thus, helps in better planning in the future periods. Thus, controlling only completes one cycle of management process and improves planning in the next cycle.
Question 8.
Dheeraj wants to start a business of selling N-95 masks after the outbreak of the global pandemic of COVID-19. Due to the uncertain market conditions he wants to make a low investment in fixed capital. Suggest how the decisions related to the choice of technique and financing alternatives can help Dheeraj in ensuring a low investment in fixed capital requirements. (3)
Answer:
Choice of Technique: As Dheeraj wishes to stick to a low investment model, we may suggest him to go with the labour-intensive approach to manufacture N-95 masks. Since better technology would cost him much and his risk appetite is not conducive for capital intensive techniques of production.
Financial Alternatives: As Dheeraj wishes to stick to a low investment model, we may suggest him to go with the lease option for fixed assets like building, heavy machinery etc. as this may reduce his investments requirement in the business.
Explanation:
Choice of Technique: Some organisations are capital intensive whereas others are labour intensive. A capital intensive organisation requires higher investment in plant and machinery as it relies less on manual labour. Labour intensive organisations, on the other hand, require less investment in fixed assets. Here, in this case, Deeraj can choose labour intensive option as it will require low investment.
Financing Alternatives: A developed financial market may offer leasing facilities as an alternative to outright purchase. As Dheeraj wants to make low investment in fixed capital he can take fixed asset i.e. land and building and plant and machinery on lease. When an asset is taken on lease, the firm pays lease rentals and uses it. By doing so, it avoids huge sums required to purchase it
Question 9.
Zenith Ltd. is a highly reputed company and many people wanted to join this company. The employees of this organisation are very happy and they discuss how they came in contact with this organisation.
Aman said that he was introduced by the present Sales Manager, Mr. John. Benu said that he had applied through the newspaper and was appointed as the H.R. Manager. Vaibhav said that he was neither related to any employee of the organisation nor was there any advertisement in the newspaper, even then, he was directly called from IIM Ahmedabad from where he was about to complete his MBA.
(A) The above discussion is indicating an important function of management. Name the function of management.
(B) The management function identified in part (A) follows a particular process. Explain the step of this process which is being discussed in the above paragraph.
OR
Prateekis working in a multinational company in Noida. He was running a temperature for the last many days. When his blood was tested, he was found to be positive for malaria. He was admitted in a hospital and a blood transfusion was advised by the doctors as his condition was very serious.
One of his colleagues sent a text message to his superior, Mr. B. Chatterjee. Mr. B. Chatterjee immediately sent a text message to the employees of the organisation requesting them to donate blood for Prateek. When the General Manager came to know about it, he ordered for fumigation in the company premises and cleaning the surroundings. From the above paragraph, quote lines that indicate formal and informal communication. State different types of informal communication. (5)
Answer:
(A) The function of management discussed above is staffing. Staffing is ‘putting people to jobs’. It begins with workforce planning and includes different other function like recruitment, selection, training, development, promotion, compensation and performance appraisal of work force. In other words, staffing is that part of the process of management which is concerned with obtaining, utilising and maintaining a satisfactory and satisfied work force.
(B) The step of this process which is being discussed in the above paragraph is recruitment. Recruitment refers to the process of finding possible candidates for a job or a function. It has been defined as ‘the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.’ Advertising is commonly part of the recruitment process, and can occur through several means, through newspapers, using newspaper dedicated to job advertisement, through professional publication, using advertisements placed in windows, through a job center, through campus interviews, etc.
OR
Formal communication: Formal communication flows through official channels designed in the organisation chart. This communication may take place between a superior and subordinate, a subordinate and superior or among same cadre employees or managers
“When the general manger came to know about it, he ordered for fumigation in the company premises and cleaning surroundings.”
Informal communication: Communication that takes place without following the formal lines of communication is said to be informal communication. “One of his colleagues sent a text message to his superior, Mr. B. Chatterjee. Mr. B. Chatterjee immediately sent a text message to the employees of the organisation requesting them to donate blood for Prateek.”
Types of informal communication:
Grapevine Network: Grapevine communication may follow different types of network. In single strand network, each person communicates to the other in sequence. In gossip network, each person communicates with all on non-selective basis.
In probability network, the individual communicates randomly with other individual. In cluster, the individual communicates with only those people whom he trusts. Of these four types of networks, cluster is the most popular in organisations.
Question 10.
Shyam wanted to start a business of selling handicrafts by getting in touch with the craftsmen in the rural areas of Bengal. He wants to make a low investment in fixed Capital. Advise him in taking suitable decisions regarding the Nature of Business, Scale of operations and Financing Alternatives in a developed financial market) that he needs to take for the purpose. (5)
Answer:
(A) The function of management discussed above is staffing. Staffing is ‘putting people to jobs’. It begins with workforce planning and includes different other function like recruitment, selection, training, development, promotion, compensation and performance appraisal of work force. In other words, staffing is that part of the process of management which is concerned with obtaining, utilising and maintaining a satisfactory and satisfied work force.
(B) The step of this process which is being discussed in the above paragraph is recruitment. Recruitment refers to the process of finding possible candidates for a job or a function. It has been defined as ‘the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.’
Advertising is commonly part of the recruitment process, and can occur through several means, through newspapers, using newspaper dedicated to job advertisement, through professional publication, using advertisements placed in windows, through a job center, through campus interviews, etc.
Question 11.
Stock exchange acts as a regulator of the securities market, it creates a continuous market where the securities are bought and sold. It gives investors the chance to disinvest and reinvest. Through this process of disinvestment and reinvestment, savings get channelised into their most productive investment avenues. To ensure that the investing public gets a safe and fair deal in the market, the membership of the stock exchange is well regulated and its dealings are well defined according to the existing legal framework.
It also ensures wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments, various functions performed by the Stock. Exchange are discussed in the above para. By quoting the lines from the above para, state any four functions of stock exchange. (5)
Answer:
The various functions performed by the Stock Exchange are:
(1) Providing liquidity and marketability to existing securities as the stock exchange creates a continuous market where the securities are bought and sold. It gives investors the chance to disinvest and reinvest
(2) Contributes to economic growth as through process of disinvestment and reinvestment, savings get channelised into their most productive investment avenues.
(3) Safety of transactions as the membership of the stock exchange is well regulated and its dealings are well defined according to the existing legal framework. This ensures that the investing public gets a safe and fair deal on the market.
(4) Spreading of equity cult as the stock exchange ensures wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.
Question 12.
‘RO Youth Club’ organised a visit of its members to an Old Age Home to inculcate the habit of social work among them. The visit revealed that the living conditions of the inmates of the Old Age Home were not hygienic. So, the RO Youth Club members decided to clean the premises. During their cleanliness drive, they realised that the Old Age Home also required pest control. (5)
But some of the inmates of the Old Age Home were reluctant for it because they believed that the pest control may create health problems for them. RO Youth Club, therefore, decided to provide ethical, safe and odourless pest control. They showed to the inmates of the Old Age Home a pamphlet of the proposed pest control product which promised easy, inexpensive and long-lasting pest controL The inmates happily agreed and the pest control was carried out. The effect of the pest control started wearing off after a fortnight.
RO Youth Club contracted the pest control company which kept on postponing their visit. After waiting fbr a month, RO Youth Club 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 eight directions that might have been issued by the court.
OR
Aman, a degree holder in Entrepreneurship came to know about Piplantri Village located in Rajasthan, where in 2006 an initiative was started, in which 111 trees are planted every time a girl child is born. To keep termites away from the trees the villagers have planted 2.5 million. Aloe Vera plants around the trees. This has turned the village into an oasis, as the planting of trees led to higher water levels.
OR
Aman decided to visit the village to start a business unit, for the processing and marketing of Aloe Vera into juices, gels and other products. However, on visiting village Aman found that the villagers were suffering exploitation at the hands of local merchants who were engaged in unscruplous, exploitative trade practices like hoarding and black marketing of food product sand also selling unsafe, adulterated products to the villagers. After looking at their plight instead of a business organisation he decided to set up an organisation for the protection and promotion of the consumer interest of the villagers. State the functions that the organisation established by Aman will be performing (Any five points). (5)
Answer:
The directions that might have been issued by the court:
(1) To remove the deficiency in service.
(2) To refund the price paid for the service provided.
(3) To pay a reasonable amount of compensation for any loss suffered by the inmates of old age home.
(4) To pay punitive damages.
(5) To discontinue the unfair/ restrictive trade practice and not to repeat the same in future.
(6) To pay any amount (not less than 5% of the value of the service provided) to be credited to the Consumer Welfare Fund or any other organisation/person, to be utilised in the prescribed manner.
(7) To issue corrective advertisement to neutralize the effect of misleading pamphlet.
(8) To pay adequate costs to RO Youth Club.
OR
The organisation established by Aman will be performing the following functions.(any five)
(1) Educating the general public about consumer rights by organising training programmes, seminars and workshops.
(2) Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.
(3) Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade practices of sellers.
(4) Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.
(5) Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking legal remedy.
(6) Filing complaints in appropriate consumer courts on behalf of the consumers.
(7) Taking an initiative in filing cases in consumer courts in the interest of the general public, not for any individual.