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As per CBSE Sample Paper
Issued On 02 Sep, 2021...
Sample
Papers
Business Studies
CBSE Class 12 (Term I )
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As per CBSE Sample Paper
Issued On 02 Sep, 2021...
Sample
Papers
Business Studies
CBSE Class 12 (Term I )
Author
Abhishek Jain
ARIHANT PRAKASHAN (School Division Series)

ARIHANT PRAKASHAN (School Division Series)
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Contents
þ One Day Revision 1-6
þ The Qualifiers 7-20
þ CBSE Question Bank 21-23
þ Latest CBSE Sample Paper 24-34
Sample Paper 1 37-47
Watch Free Learning Videos
Video Solutions of CBSE Sample Papers

Chapterwise Important MCQs
CBSE Case Based MCQs
CBSE Updates
Much more valuable content will be available regularly

Syllabus
Business Studies CBSE Class 12 (Term I )
Term MCQ Based Question Paper

Units Period Marks
Theory - Marks Duration: Minutes
Part A Principles and Functions of Management

. Nature and Significance of Management
. Principles of Management
. Business Environment
. Planning
. Organising
Total
Part B Business Finance and Marketing

. Marketing Management
Total
Project Work Part
TERM I
Part A Principles and Functions of Management
Unit Nature and Significance of Management
Management - concept, objectives, and importance
Management as Science, Art and Profession
Levels of Management
Management functions-planning, organizing, staffing, directing
and controlling
Coordination- concept and importance
Unit Principles of Management
Principles of Management- concept and significance
Fayol s principles of management
Taylor s Scientific management principles and techniques
Unit Business Environment
Business Environment- concept, importance and limitation
Dimensions of Business Environment- Economic, Social, Technological,
Political and Legal
Unit Planning
Business Environment- concept, importance and limitation
Planning process
Unit Organising
Organising: Concept and importance
Organising Process
Structure of organisation- functional and divisional concept
Delegation: concept, elements and importance
Decentralization: concept and importance
Part B Business Finance and Marketing

Unit Marketing
Marketing Concept, functions and philosophies - Product, Prize
and Standard
Marketing Mix Concept and elements
Product - branding, labelling and packaging Concept
Price - Concept, Factors determining price
Physical Distribution concept
Promotion Concept and elements; Advertising, Personal Selling, Sales
Promotion
and Public Relations
PROJECT WORK IN BUSINESS STUDIES ONLY ONE PROJECT : GUIDELINES AS

GIVEN IN CLASS XII CURRICULUM
MCQs Preparation Tips
Focus on Theory Learn to Identify Wrong Answers

MCQs can be formed from any part or The simplest trick is, observe the options
line of the chapter. So, strong command first and take out the least possible one
on theory will increase your chances to and repeat the process until you reach
solve objective questions correctly and the correct option.
quickly.
Analyze your Performance
Practice of Solving MCQs During the practice of MCQs you can
Cracking an MCQ-based examination identify your weak & strong
requires you to be familiar with the topics/chapter by analyzing incorrect
question format, so continuous practice answers, in this way you will get an
will make you more efficient in solving awareness about your weaker topics.
MCQs.
Practice through Sample Papers
Speed & Accuracy Solving more & more papers will make
In MCQ-based examination, you need you more efficient and smarter for
both speed and accuracy, if your exams. Solve lots of Sample Papers
accuracy is good but speed is slow then given in a good Sample Papers book.
you might attempt less questions
resulting in low score.
Attempting MCQs in Exams
1. Read the paper from beginning to Step by step solution is not required
end & attempt those questions first in in MCQ type questions, it is a waste
which you are confident. Now move of time, you will not get extra marks
on to those questions which requires for this.
thinking and in last attempt those
4. Most of the time, you need not to
questions for which you need more
solve the MCQ completely to get the
attention.
correct option. You can start thinking
2. Read instructions of objective in reverse order and choose the best
questions carefully and find out what fit option.
is being asked, a bit carelessness can
5. As there is no negative marking for
lead you to incorrect answer.
incorrect answers, so don't leave any
3. Tick/Write down the correct option question unanswered. Use your
only while filling the OMR sheet. guess if you have not exact idea
about the correct answer.
CBSE Sample Paper Business Studies Class XII (Term I) 1
ONE DAY
REVISION
Revise All the Concepts in a Day
Just Before the Examination...
n Nature and Significance of Management

1. Meaning of Management It is a process which 5. Importance of Management
consists of series of interrelated functions that are (i) It helps in achieving group goals.
performed by all managers to effectively achieve (ii) It increases efficiency.
the goals of an organisation.
(iii) It creates a dynamic organisation.
2. Concept of Management
(iv) It helps in achieving personal objectives.
(i) Traditional Concept The traditional concept of
(v) It helps in the development of society.
management is concerned with accomplishing
organisational objectives by directing the efforts 6. Nature of Management
of others or it is an art of getting things done (i) Management as Science Like a science,
through others. management has a systematised body of
(ii) Modern Concept The modern concept insists knowledge that explains general truths and
on achieving goals effectively and efficiently. factual situations. But it is not considered as a
Thus, it is defined as a process of getting things perfect science as it is concerned with human
done with the aim of achieving goals effectively behaviour which is unpredictable.
and efficiently. (ii) Management as an Art Like an art,
Effectively means completing the task/work on management is a personalised process in which
time while efficiently means doing the task managers apply their personal experiences in
correctly and with minimum cost. real life situations.
3. Characteristics of Management (iii) Management is a Science as well as an Art
Management is a science as well as an art
(i) Goal-oriented process
because it is a combination of an organised
(ii) Group activity body of knowledge (science) and skilful
(iii) Intangible force (iv) All pervasive application of this knowledge (art).
(v) Multi-dimensional (vi) Continuous process
(iv) Management as Profession Like a profession,
ONE DAY REVISION
(vii) Dynamic function

management has well defined body of
4. Objectives of Management knowledge but it is not considered as
(i) Organisational Objectives are related with full-fledged profession as it lacks certain distinct
survival, profit earning and growth of an features of profession such as code of conduct
organisation. and professional association.
(ii) Social Objectives involve creation of benefits 7. Levels of Management
for the society. (i) Top Level consists of members who are
(iii) Personal Objectives are related to fulfilling the concerned with framing of policies. This level
financial, social and higher level needs of includes board of directors, chief executives,
employees. managing directors, etc.
2 CBSE Sample Paper Business Studies Class XII (Term I)
(ii) Middle Level consists of members who are (v) Controlling is the process of ensuring that the
concerned with the work of implementation. This organisation is able to attain the organisational
level includes head of the departments, branch goals. It ensures that activities conform to the
and regional managers, etc. standards set for performance.
(iii) Operational Level consists of members who 9. Meaning of Coordination It is the force that binds
are concerned with execution of the work. This all the functions of management. It is considered as
level includes foreman, clerks, inspectors, etc. the essence of management.
8. Functions of Management 10. Characteristics of Coordination
(i) Planning is the process of deciding in advance (i) It integrates group efforts.
what is to be done, when, how and by whom it is (ii) It ensures unity of action.
to be done. (iii) It is a continuous process.
(ii) Organising is the process of assigning duties, (iv) It is required in all organisations and at every level.
grouping tasks, establishing authority and (v) It is a deliberate function.
allocating resources required to carry out a (vi) It is the responsibility of all managers.
specific plan. 11. Importance of Coordination
(iii) Staffing is the process of filling all positions in (i) Coordination is necessary to manage large
an organisation with adequate and qualified organisations.
personnel. (ii) Due to functional differentiation in departments
(iv) Directing function is related with leading, and divisions, it is required to bring in a degree
influencing, guiding, supervising and motivating of homogeneity.
people towards the attainment of planned (iii) To create unity of action among specialists, it is
targets. required in organisations.
n Principles of Management
1. Concept of Management Principles These are (ii) Authority and Responsibility There must be a
broad and general guidelines for decision-making balance or parity between authority and
and behaviour. These principles serve as general responsibility.
practical guidelines for the manager, assisting him (iii) Discipline It signifies obedience to organisational
to make decisions, take action and solve problems rules and regulations which are necessary for the
systematically. smooth working of an organisation.
2. Nature of Principles of Management (iv) Unity of Command A subordinate should
(i) Universal applicability receive orders from one superior only at a given
(ii) General guidelines point of time.
(iii) Formed by practice and experimentation (v) Unity of Direction Each group of activities
having the same objective must have one head
(iv) Flexible
and one plan.
(v) Cause and effect relationship
(vi) Subordination of Individual Interest to General
(vi) Contingent Interest In all situations, company’s interest
(vii) Mainly behavioural should supersede the interest of individual.
3. Significance of Principles of Management (vii) Remuneration of Employees The quantum and
methods of remuneration payable to the
(i) To provide managers with useful insights
employees should be fair and reasonable.
into reality.
(viii) Centralisation and Decentralisation An
(ii) Optimum utilisation of resources and effective
ONE DAY REVISION
organisation should strive to achieve a proper

administration.
balance between centralisation and
(iii) To take scientific decisions. decentralisation.
(iv) Meeting changing environment requirements. (ix) Scalar Chain and Gang Plank Scalar chain
(v) Fulfilling social responsibilities. refers to the chain of authority and
(vi) Management training, education and research. communication that runs from top to bottom and
4. Fayol’s Principles of Management Henry Fayol should be followed by managers and their
has given fourteen principles of management which subordinates.
are as follows Gang plank refers to an arrangement in which
(i) Division of Work Work is divided into small two managers working at the same level can
tasks. This helps in taking the advantage of communicate with each other directly for quick
specialisation. communication.
(x) Order People and materials must be in suitable their performance to achieve new heights in their
places at appropriate time for maximum efficiency. careers.
(xi) Equity This principle advocates that everyone 6. Techniques of Scientific Management
should be equal in the eyes of the management. (i) Functional Foremanship Under this technique,
There should be no discrimination against any planning and execution are separated from each
one on account of sex, religion, language, caste, other. Taylor advocated the appointment of
belief or nationality. eight foremen; out of which, four of them will be
(xii) Stability of Personnel Personnel should be responsible for planning viz, route clerk,
selected and appointed after due and rigorous instruction card clerk, time and cost clerk and
procedure. But once selected they should be disciplinarian and the rest four viz, speed boss,
kept at their position for a minimum fixed tenure. gang boss, repair boss and inspector will be
(xiii) Initiative Fayol suggested that employees at all concerned with the execution of work.
levels should take initiative without any force or (ii) Standardisation of Work refers to the process
boundations. of setting standards for every business activity.
(xiv) Esprit de Corps Management should promote (iii) Simplification of Work aims at eliminating
team spirit of unity and harmony among unnecessary varieties, sizes and dimensions of
employees. products.
5. Principles of Scientific Management FW Taylor (iv) Method Study This technique is conducted to
has given four principles of management which are find out the one best way of performing a
as follows particular task.
(i) Science, not Rule of Thumb Taylor is of the (v) Motion Study It refers to the study of
view that there is one best method of doing a movements like lifting, putting objects, sitting
job which should be developed through and changing positions, etc. which are
scientific study and analysis rather than wish of undertaken while doing typical jobs.
manager or hit and trial method and it should (vi) Time Study It determines the standard time
substitute the age old method of doing a job. taken to perform a well defined job.
(ii) Harmony, not Discord There should be (vii) Fatigue Study This study seeks to find out the
harmony between the management and the amount and frequency of rest intervals required
workers. in completing a task.
(iii) Cooperation, not Individualism There should (viii) Differential Piece Wage System Under this
be cooperation between workers and system of wage payment, wages are paid on the
management. Everyone should work for the basis of work done.
betterment of the organisation.
(ix) Mental Revolution refers to change in mind on
(iv) Development of Each and Every Person to the part of both workers and management,
his/her Greater Efficiency and Prosperity towards each other from competition to
Adequate opportunities must be made available cooperation.
for employees, so that they strive to improve
n Business Environment
1. Business Environment means the sum total of all 3. Importance of Business Environment
individuals, institutions and other forces that are (i) It enables the firm to identify opportunities and
outside the control of a business enterprise but that getting the first mover advantage.
may affect its performance. (ii) It helps the firm to identify threats and early
2. Features of Business Environment warning signals.
ONE DAY REVISION
(i) Totality of external forces (iii) It helps in tapping useful resources.

(ii) General and specific forces (iv) It helps in coping up with rapid changes.
(v) It helps in planning and policy formulation.
(iii) Inter-relatedness
(vi) It helps in improving performance.
(iv) Dynamic nature
(v) Uncertainty 4. Dimensions of Business Environment
Dimensions or the factors constituting the business
(vi) Complexity
environment consist of the external forces, which
(vii) Relativity directly or indirectly affect the functioning of a
business enterprise.
The following are the dimensions of business innovations, which provide new ways of
environment production, method and techniques. e.g.
(i) Economic Environment consists of the factors Innovations and inventions, scientific
and forces concerning with means of production improvements, etc.
and distribution of wealth. e.g., balance of (iv) Political Environment consists of the forces
payment, money supply in the economy, etc. concerning management of public affairs and
(ii) Social Environment consists of all the social their impact on business. e.g., political structure,
and cultural forces within which business firms foreign policy, trade policy, etc.
operate. e.g., quality of life, family structure and (v) Legal Environment provides the regulatory
values, etc. framework, within which business has to
(iii) Technological Environment includes forces function. e.g., packets of cigarettes must carry
relating to scientific improvements and the statutory warning, etc.
n Planning
1. Planning is deciding in advance the objectives to (ii) External Limitations
be achieved during a given period, formulating (a) Unforeseen events
alternative courses of action to achieve them and (b) Political outlook
selecting the best course of action. (c) Environmental changes
2. Features of Planning (d) Competitors’ strategy
(i) It focuses on achieving objectives. 5. Process of Planning Planning is to decide in advance
(ii) It is a primary function of management. what to do and how to do. It is an activity, which follows
(iii) It is all pervasive. certain logical steps, which are as follows
(iv) It is continuous. (i) Setting Objectives Plans are prepared to
(v) It is futuristic. achieve certain objectives or goals.
(vi) It involves decision-making. (ii) Developing Premises Planning is concerned
(vii) It is a mental exercise. with future, which is uncertain. Therefore, the
manager is required to make certain
3. Importance of Planning
assumptions about future and these
(i) It provides direction. assumptions are known as premises.
(ii) It reduces the risk of uncertainty. (iii) Identify Alternative Courses of Action In this
(iii) It reduces overlapping and wasteful activities step, the manager identifies all possible
(iv) It promotes innovative ideas. alternatives and collects and analyse all relevant
(v) It facilitates decision-making. information related to these alternatives.
(vi) It establishes standards for controlling. (iv) Evaluating Alternative Courses This step is to
weigh the pros and cons of each alternative.
4. Limitations of Planning
(v) Selecting an Alternative In this step, the best
(i) Internal Limitations
plan has to be selected by the manager.
(a) It leads to rigidity.
(vi) Implementing the Plan This step is concerned
(b) It may not work in a dynamic environment.
with putting the plan into action.
(c) It reduces creativity.
(vii) Follow Up Planning is a continuous process, so
(d) It involves huge costs.
that the managers keep on following up the
(e) It is a time consuming process.
plans to see that activities are being performed
(f) It does not guarantee success.
as per the schedule or not.
ONE DAY REVISION
n Organising
1. Organising is the process of identifying and human efforts, assembles resources and integrates
grouping different activities in the organisation both into a unified whole to be utilised for achieving
and bringing together the physical, financial and specific objectives.
human resources to establish most productive Concept of Organising as a Structure The
relations for the achievement of specific goals of an organising function leads to the creation of an
organisation. organisational structure which includes the
Concept of Organising as a Process Organising designing of roles to be filled by suitably skilled
essentially implies a process which coordinates people and defining the inter-relationship between
these roles so that ambiguity in performance of
duties can be eliminated.
2. Importance of Organising 6. Delegation refers to the downward transfer of

(i) Benefits of specialisation authority from a superior to subordinate. It is a
(ii) Clarity in working relationships pre-requisite for the efficient functioning of an
organisation because it enables a manager to use
(iii) Optimum utilisation of resources
his time on high priority activities.
(iv) Development of personnel
7. Elements of Delegation
(v) Expansion and growth
(i) Authority refers to the right of an individual to
(vi) Adaptation to change command his subordinates and to take action
(vii) Effective administration within the scope of his position. It flows
3. Process of Organising downward.
(i) Identification and Division of Work In this step, (ii) Responsibility is the obligation of a subordinate
organising involves identifying and dividing the to properly perform the assigned duty. It flows
work according to pre-determined plan. upward, i.e., a subordinate will always be
(ii) Departmentalisation In this step, those responsible to his superior.
activities which are similar in nature are grouped (iii) Accountability implies being answerable for the
together. final outcome.
(iii) Assignment of Duties In this step, work is It flows upward as subordinate will be
allocated to different individuals as per the accountable to his superior.
knowledge and skills acquired by them. 8. Importance of Delegation
(iv) Establishing Reporting Relationship In this (i) Effective management
step, hierarchical structure should be followed (ii) Employees development
with proper coordination.
(iii) Motivation of employees
4. Functional Structure is an organisational structure
(iv) Facilitation of growth
that groups similar or related jobs together. This
organisational structure is suitable when the size of (v) Basis of management hierarchy
the organisation is large, has diversified activities (vi) Better coordination
and operations and requires a high degree of 9. Decentralisation refers to systematic effort to
specialisation. delegate to the lowest level all authority except that
5. Divisional Structure In divisional structure, the which can be exercised at central points.
organisation structure comprises of separate 10. Importance of Decentralisation
business units or divisions. Divisions are created (i) Develops initiative among subordinates
when product expansion, diversification,
(ii) Develops managerial talent for the future
manufacturing and marketing are being done. This
organisational structure is suitable for those (iii) Facilitates quick decision-making
business enterprises where a large variety of (iv) Provides relief to top management
products are manufactured using different (v) Results in better control and facilitates growth
productive resources.
n Marketing Management
1. Marketing is a social process by which individuals (vi) Branding
and groups obtain what they need and want (vii) Customer support services
through creating, offering and freely exchanging (viii) Pricing of products
products and services of value with others.
(ix) Promotions
2. Features of Marketing
ONE DAY REVISION
(x) Physical distribution

(i) Need and want (ii) Customer value
(xi) Transportation
(iii) Exchange mechanism
(xii) Storage and warehousing
(iv) Creating a market offering
4. Marketing Philosophies
3. Functions of Marketing
(i) Production Concept Under this concept, the
(i) Gathering and analysing market information focus was on improving the efficiency of
(ii) Market planning production and distribution.
(iii) Product designing and development (ii) Product Concept Under this concept, the focus
(iv) Standardisation and grading shifted from quantity of production to quality of
(v) Packaging and labelling production.
(iii) Selling Concept Under this concept, firms 13. Physical Distribution is concerned with making the
began to undertake aggressive selling and goods and services available at the right place, so
promotional efforts to attract and persuade that people can purchase the same. There are two
customers to buy. important decisions related to physical distribution.
(iv) Marketing Concept Under this concept, They are
customer satisfaction became the focal point of (i) Channels of distribution
all business decisions. (ii) Physical movement of goods
(v) Societal Marketing Concept Under this 14. Promotion refers to the use of communication with
concept, customer satisfaction is supplemented the twin objectives of informing potential customers
by social welfare. about a product and persuading them to buy it.
5. Marketing Mix is the set of marketing tools that 15. Promotion Mix and its Elements Promotion mix
firm uses to pursue its marketing objectives in the consists of all the activities aimed at persuading
target market. customers to buy the products. The various
6. Elements of Marketing Mix The elements of elements of promotion mix are as under
marketing mix are popularly referred to as 4ps (i) Advertising
which are product, price, place and promotion. (ii) Personal selling
7. Product is any good or service that a consumer (iii) Sales promotion
wants. It is a bundle of utilities or a cluster of
(iv) Public relations
tangible and intangible attributes which can be
exchanged for a value. 16. Advertising involves dissemination of information
about a product, service or enterprise to induce
8. Branding is the process of assigning a distinctive
people to take actions beneficial to the advertiser.
name or symbol to a product, by which it can be
remembered. Important terms related to branding 17. Features of Advertising
include brand, brand name, brand mark and trade (i) Paid form
mark. (ii) Impersonal communication
9. Labelling means designing a label to be put on the (iii) Identified sponsor
package. A label is a small slip placed on the 18. Personal Selling is the process of informing,
product to denote its nature, contents, ownership, assisting and persuading people to buy a product
destination, etc. or service through direct personal contact.
10. Packaging refers to the combination of those 19. Sales Promotion refers to all the activities, which
activities, which are related with the designing and are undertaken for the purpose of increasing sales.
production of the containers in which the products
20. Sales Promotion Techniques
are packed. Packaging consists of three levels, i.e.,
primary packaging, secondary packaging and (i) Samples (ii) Prize contests
transportation packaging. (iii) Exchange offers (iv) Discount
11. Price may be defined as the amount of money paid (v) Lucky draw (vi) Quantity deals
by a buyer in consideration of the purchase of a 21. Public Relations evaluate public attitudes, identify
product or a service. the policies and procedures of an organisation with
12. Factors Affecting Price Determination the public interest to earn public understanding and
acceptance.
(i) Product cost
22. Role of Public Relations
(ii) The utility and demand of the product
(i) Building awareness and a favourable image for
(iii) Extent of competition in the market
a company
(iv) Government and legal regulations
(ii) Managing crisis that threatens company’s image
ONE DAY REVISION
(v) Pricing objectives

(iii) It is an efficient way to reach masses
(vi) Marketing methods used
THE
QUALIFIERS
Chapterwise Set of MCQs to Check Preparation
Level of Each Chapter
1. Nature and Significance of Management

1. Anil completes his task on the assigned time but is not able to complete it either at
lesser cost or produce better results. What does it signify?
(a) Anil is an effective and efficient manager
(b) Anil is an effective but inefficient manager
(c) Anil is an efficient manager
(d) Anil is neither effective nor efficient manager
2. ............... helps in achieving group goals by giving proper direction to the efforts of all
individuals.
(a) Work (b) Management
(c) Society (d) None of these
3. Which of the following is not a dimension of management?

(a) Management of work (b) Management of people
(c) Management of operations (d) Management of ideas
4. Which of the following statements is incorrect?

(a) Every individual who is working in an organisation desires handsome salary, peer
recognition, etc.
(b) Every organisation has a set of goals to be achieved.
(c) Management has some social responsibilities towards society.
(d) None of the above
5. At which level of management, managers are responsible for maintaining the quality
output and safety standards?
(a) Top level management (b) Middle level management
THE QUALIFIERS
(c) Lower level management (d) Both (b) and (c)
6. Assertion (A) The effect of management is noticeable in an organisation where targets

are according to plans, employees are happy and satisfied and there is orderliness
instead of chaos.
Reason (R) Every member of the organisation has a different purpose for joining the
organisation and each member works towards his personal goal.
Alternatives
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation
of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true
7. Solutions Ltd. is a MNC which produces cellphones. Currently Solutions Ltd. is under
huge losses due to the failure of its much hyped product in the market R and D
department and marketing department are blaming each other for this failure. In your
opinion Solutions Ltd. is lacking which quality of management?
(a) Planning (b) Controlling
(c) Co-ordination (d) Directing
8. An organisation is a collection of diverse activities and different individuals. Which

characteristic of management is defined by this statement?
(a) Intangible force (b) Group activity
(c) Goal oriented process (d) All of these
9. Identify the social objectives from the following.

(a) Providing good quality products at reasonable prices.
(b) Conducting business in fair and lawful manner.
(c) Expansion of the organisation. (d) Both (a) and (b)
10. The marketing manager of ‘Sisco Limited’ always keeps a check on the changes
happening in the surroundings and instructs the research and development
department to improve the products accordingly. This habit of the marketing manager
helps the company to keep an edge over the competitors. Which feature of
management is depicted in the above case?
(a) Pervasive (b) Intangible force
(c) Continuous (d) Dynamic
11. Amit has recently joined RAC Limited, a company manufacturing automobile
products. He found that his department was under-staffed and other departments
were not cooperating with his department for smooth functioning of the organisation.
Therefore, he ensured that his department has the required number of employees and
its cooperation with other departments is improved. Identify the level at which Amit
was working.
(a) Top Level (b) Middle Level
(c) Lower Level (d) None of these
12. Assertion (A) In any organisation, coordination is required so that production and
sales department can work hand in hand.
THE QUALIFIERS
Reason (R) Coordination integrates group efforts.

Alternatives
(a) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of
Assertion (A)
of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false (d) Assertion (A) is false, but Reason (R) is true
13. ............... refers to the management of human resources, which are the most important
assets for an organisation.
(a) Management of work (b) Management of operations
(c) Management of people (d) None of these
14. Identify the nature of management when it is practiced as personal application of

existing knowledge to achieve desired results.
(a) Management as a science (b) Management as an art
(c) Management as a profession (d) All of these
15. For the two statements given below, choose the correct option
Statement I In order to survive, an organisation must earn enough revenues to cover
cost.
Statement II Management increases effectiveness by reducing costs and increasing
productivity.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct
(d) Both the statements are incorrect
Answers
1. (b) 2. (b) 3. (d) 4. (d) 5. (c) For Detailed Solutions
6. (c) 7. (c) 8. (b) 9. (d) 10. (d) Scan the code
11. (b) 12. (b) 13. (c) 14. (b) 15. (a)
2. Principles of Management
1. The principles of management are significant because of
(a) initiative
(b) adaptation to changing technology
(c) optimum utilisation of resources
(d) increase in efficiency
2. This technique of scientific management has an objective to find out how long a person
can perform the standard task without any adverse effects. Which technique is
discussed here?
(a) Work study technique (b) Motion study technique
(c) Fatigue study technique (d) Differential piece wage system
THE QUALIFIERS
3. Under work study technique of scientific management, ............... involves change in the
attitude of workers and management. Both should realise the importance of the other
and should cooperate with each other.
(a) functional foremanship
(b) standardisation and simplification of work
(c) mental revolution
4. Which of the following statements best describe the principle of division of work?
(a) Resources should be divided among jobs
(b) Labour should be divided
(c) Work should be divided into small tasks
(d) It leads to specialisation
5. Assertion (A) Unity of command with the objective of one head and one plan ensures
unity of action and coordination.
Reason (R) As dual subordination is avoided through unity of command, there are no
confusions regarding the task to be done.
Alternatives
Assertion (A)
of Assertion (A)
Statement I The right to give orders and obtain obedience is known as responsibility.
Statement II The objective of method study is to determine the one best way to perform the
job.
Alternatives
(c) Both the statements are correct.
7. A production manager at top level in a reputed corporate, Mr. Sharma holds the
responsibility for ordering raw material for the firm. While deciding on the supplier
for the financial year 2021-22, he gave the order to his cousin at a higher price per unit
instead of the firm’s usual supplier who was willing to lower the rates for the order.
Which principle of management was violated by Mr. Sharma?
(a) Order
(b) Subordination of individual interest to general interest
(c) Discipline
(d) Equity
8. What is the main objective of simplification in scientific management?

(a) To determine the productive moments
(b) To determine the unproductive moments
(c) To determine the best possible way or method to perform a task
THE QUALIFIERS
(d) To eliminate unnecessary diversity of products
9. Assertion (A) Employees deserve just and fair remuneration but what is just and fair is
determined by multiple factors. They include contribution of employees, paying
capacity of employer and also prevailing wage rate for the occupation under
consideration.
Reason (R) The principles of management are flexible and can be modified by the
manager when the situation so demands.
Alternatives
Assertion (A)
of Assertion (A)
10. Which of the following is not the principle of management given by Taylor?
(a) Cooperation, not individualism (b) Science, not rule of thumb
(c) Harmony, not discord (d) Functional foremanship
11. Which principle of management is violated when a manager expects his subordinates
to adopt to new working conditions without giving them time to settle down?
(a) Unity of Command (b) Discipline
(c) Unity of Direction (d) Stability of Tenure
12. Gang plank is introduced in which principle?

(a) Authority and responsibility (b) Initiative
(c) Scalar chain (d) Coordination
13. ‘‘He/she keeps machines, materials, tools etc., ready for operations by concerned
workers’’. Whose work is described by this sentence under functional foremanship?
(a) Instruction and clerk (b) Repair boss
(c) Gang boss (d) Route clerk
14. A company is manufacturing cosmetics, medicines, health products and skin care
products. It has separate divisions headed by divisional heads. Each division consists
of separate departments with respective departmental heads. Each department has
different groups and units with their own goals and objectives. Which principle of
management is being followed in the said organisation?
(a) Unity of Command (b) Discipline
(c) Unity of Direction (d) Stability of Tenure
15. Management principles differ from pure science principles because management
principles are....................
(a) vague (b) situation-bound
(c) rigid (d) easy to learn
Answers
1. (d) 2. (c) 3. (c) 4. (c) 5. (d) For Detailed Solutions
6. (b) 7. (b) 8. (d) 9. (b) 10. (d) Scan the code
11. (d) 12. (c) 13. (c) 14. (c) 15. (b)
THE QUALIFIERS
3. Business Environment
1. ‘‘Demand for reservation in jobs for minorities refer to an example of key component
of general environment of business’’. Name this component.
(a) Economic environment (b) Political environment
(c) Legal environment (d) Social environment
2. Does study of business environment help in maintaining image in market?

(a) Yes, study of business environment is necessary for maintaining good image in market.
(b) No, study of business environment is not necessary for maintaining good image in market.
(c) Study of social environment is necessary instead of business environment, for
maintaining good image in market. (d) None of the above

(a) Business environment is aggregative in nature
(b) Business environment is dynamic in nature
(c) Business environment does not include both specific and general forces
(d) Business environment is a relative concept
4. Understanding of business environment helps the firm to identify opportunities to get

the ................
(a) early warning signals (b) first mover advantage
(c) useful resources (d) None of these
5. Assertion (A) Manufacturers have now flexible manufacturing systems.

Reason (R) Agricultural and industrial production trends are the economic dimensions
of the environment which affect the business environment.
Alternatives
Assertion (A)
of Assertion (A)
6. “The celebration of Diwali, Eid, Christmas and Guru Parv in India provides significant
financial opportunities for greeting cards companies, sweets or confectionery
manufacturers, tailoring outlets and many other related business. Name the dimension
of the business environment highlighted by this statement.
(a) Technological environment (b) Legal environment
(c) Political environment (d) Social environment
7. ‘‘The understanding of business environment enables the firm to identify

opportunities’’. What is meant by opportunities here?
THE QUALIFIERS
(a) Negative changes in external environment (b) Positive changes in external environment
(c) Negative changes in internal environment (d) None of these
8. Assertion (A) Entry of new firms in the market may make an enterprise think afresh
about how to deal with the situations.
Reason (R) Business environment assist in planning and policy formulation.
Alternatives
Assertion (A)
of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false (d) Assertion (A) is false, but Reason (R) is true
9. Analysing process of change in the business environment involves conceptualising it as

(a) Divisible in nature (b) Complex in nature
(c) Dynamic concept (d) Static concept
Statement I Environment is a complex phenomenon that is relatively easier to
understand in parts but difficult to grasp in its totality.
Statement II Frequent environmental changes in the field of technology and fashion
industry are related with uncertainty of business environment.
Alternatives
(a) Statement I is correct and Statement II is incorrect.
(b) Statement II is correct and Statement I is incorrect.
(c) Both the statements are correct. (d) Both the statements are incorrect.
11. ‘‘Environment provides both constraints and opportunities’’. What is your opinion?
(a) Yes, it provides both constraints and opportunities
(b) It neither provides constraints nor provides opportunities
(c) It provides opportunities but not constraints(d) None of these
12. Which of the following is the feature of business environment?

(a) It is a relative concept since it differs from country to country and even region to region.
(b) It enables the firm to identify opportunities and getting the first mover advantage.
(c) It helps in tapping useful resources. (d) All of these
13. ……… is considered as the major element of political environment.

(a) The extent of government intervention in business
(b) Planned outlay in public and private sectors
(c) Expectation from the workforce
(d) Administrative order issued by government authorities
14. As a foreign tourist visited India, he noticed that Indian markets, tastes, trends and
regulations were different from that of his country. Which feature of business
environment is reflected here?
(a) Uncertainty (b) Dynamic
(c) Relative concept (d) All of these
15. In accordance with the economic planning, the government of India gave a lead role to
the public sectors for infrastructure industries whereas the private sectors were
broadly given the responsibility of developing consumer goods industry. At the same
time, the government imposed several restrictions, requisitions and controls on the
THE QUALIFIERS
working of private sector enterprises. Identify the dimension(s) of business

environment highlighted above.
(a) Economic environment (b) Legal environment
(c) Political environment (d) All of these
Answers
1. (d) 2. (a) 3. (c) 4. (b) 5. (c) For Detailed Solutions
6. (d) 7. (b) 8. (a) 9. (c) 10. (c) Scan the code
11. (a) 12. (d) 13. (a) 14. (c) 15. (d)
4. Planning
1. Plans are made for a specific time period. At the end of such time period, new plans
have to be drawn. Identify the feature of planning.
(a) Planning is pervasive (b) Planning is futuristic
(c) Planning involves decision-making (d) Planning is continuous
2. ‘‘All other managerial functions are performed within the framework of the plans
drawn. Thus, it can be said that planning preceeds other functions.’’ This statement
describes which function of planning?
(a) Planning focuses on achieving objectives (b) Planning is pervasive
(c) Primacy of planning (d) Planning is futuristic
3. Which of the following is correct statement?

(a) Planning requires systematic and logical thinking rather than guess work.
(b) The scope for planning is same at all levels.
(c) Planning is an exclusive function of top management.
(d) Time factor should not be taken into consideration during planning.
4. Shyam Clothing Co. manufactures readymade garments. The CEO wants to increase
profits by purchasing new high speed machines or increasing the sale price or using
waste materials in manufacturing stuffed toys. He decided that ‘using waste material’
is the best solution for him. Identify the concept of management involved.
(a) Directing (b) Coordinating
(c) Planning (d) Organising
5. Assertion (A) Managers need to be given some flexibility to be able to cope with the
changed circumstances.
Reason (R) Planning reduces creativity.
Alternatives
Assertion (A)
of Assertion (A)
6. An ideal plan would be one which is most profitable, most feasible and has the
least..........
(a) positive consequences (b) negative consequences
(c) alternatives (d) None of these
7. “Planning is required at all levels of management as well as in all departments of the

organisation. It is neither an exclusive function of top management nor of any
THE QUALIFIERS
particular department. But the scope of planning differs at different levels and among
different department.” Identify the feature/characteristic of planning highlighted
above.
(a) Planning is continuous (b) Planning is futuristic
(c) Planning is pervasive (d) Planning involves decision-making
Statement I Planning seeks to bridge the gap between where we are and where we want to
go.
Statement II Planning is basically an intellectual activity of thinking.
Alternatives
(c) Both the statements are correct.
(d) Both the statements are incorrect.
9. Identify the correct sequence of steps in the process of planning.

(i) Evaluating alternative courses of action
(ii) Implementing the plan
(iii) Developing premises
(iv) Follow up
(a) (i), (ii), (iii), (iv) (b) (ii), (iii), (iv), (i)
(c) (iii), (i), (ii), (iv) (d) (ii), (i), (iv), (iii)
10. If there is no planning, employees would work in different directions and would not be
able to achieve its goals. In the light of this statement, identify the importance of
planning.
(a) Planning reduces the risk of uncertainties
(b) Planning facilitates decision-making
(c) Planning provides direction
11. On the introduction of ‘Goods and Services Tax Act’, experts in the field of business
started analysing and forecasting its impact on various sectors and industries. Rakesh,
an established businessman, attended a few seminars and conferences organised by
such experts to familiarise himself with this information. He wanted to use these
forecast and conjectures to reduce the uncertainty in making decisions for the future in
his business. Name the step in the planning process that is being discussed in the
above paragraph.
(a) Setting objectives
(b) Developing premises
(c) Evaluating alternatives
(d) Implementing the plan
12. Assertion (A) Through planning, the uncertain events or changes can be anticipated
and eliminated.
Reason (R) Planning reduces the risk of uncertainty.
Alternatives
THE QUALIFIERS
Assertion (A)
of Assertion (A)
13. In financial plans, the risk-return trade-off is very common. The more risky the
investment, the higher the returns it is likely to give. To evaluate such proposals,
detailed calculations of earnings, earnings per share, interest, taxes, dividends are
made and decisions taken. Identify the step of planning function of management
highlighted above.
(a) Setting objectives (b) Developing premises
(c) Identifying alternative courses of action (d) Evaluating alternative courses
14. Reliable communication limited scans the business environment and adapt itself to the
changes in the environment, yet it becomes difficult to foresee the future trends. Which
limitation of planning is related to the above statement?
(a) Planning may not work in the dynamic environment
(b) Planning reduces creativity
(c) Planning is a time consuming process
(d) Planning does not guarantee success
15. Planning gives direction, reduces the impact of change, minimises waste and
redundancy and
(a) establishes chaos among departments
(b) sets the basis used for promotion of individuals within the organisation
(c) planning guarantees safeguard from external environment
(d) sets the standards used in controlling
Answers
1. (d) 2. (c) 3. (a) 4. (c) 5. (b) For Detailed Solutions
6. (b) 7. (c) 8. (c) 9. (c) 10. (c) Scan the code
11. (b) 12. (d) 13. (d) 14. (a) 15. (d)
5. Organising
1. What is dividing the whole concern into independent units and departments called?
(a) Decentralisation (b) Departmentation
(c) Division (d) Functionalisation
2. “Organisation is the harmonious adjustment of specialised parts of the

accomplishment of some common purpose or purposes.” What does this statement
imply?
(a) It implies the features of organisation
(b) It implies the importance of organisation like specialisation, adaptation to change etc
(c) It refers to the process of organisation which includes assignment of duties
THE QUALIFIERS
3. There is a board meeting going on for the Synco Informatics Ltd. Two of the top level
managers, Mr. Vivek and Mr. Ankit are of a different view when it comes to the kind of
working structure of the organisation. Mr. Vivek says that the organisation deals in
variety of products, the growth prospects of the organisation are high and that it wants
to expand to different territories. Which structure is he fighting for?
(a) Divisional structure (b) Functional structure
(c) Matrix structure (d) Line structure
4. Assertion (A) Organising provides a base for measuring performance and helps in
fixing responsibility in case of poor performance.
Reason (R) In divisional structure, each department is accountable for its own profit or
loss.
Alternatives
Assertion (A)
of Assertion (A)
5. A manager alone cannot perform all the tasks assigned to him. In order to meet the
targets, the manager should ........... authority.
(a) leave (b) delegate
(c) decentralise (d) rise
6. ........... is the obligation to perform the assigned task.

(a) Authority (b) Responsibility
(c) Accountability (d) Permissibility
7. Vardhman Ltd. is engaged in manufacturing travelling bags. The objective of the

company is to manufacture 50 bags a day. To achieve this, the efforts of all departments
are co-ordinated, interlinked, authority, responsibility and relationship is established
among various job positions. There is clarity on who is to report to whom. Which step
of organising is being discussed here?
(a) Division of work (b) Departmentalisation
(c) Assignment of duties (d) Reporting relationships
8. Assertion (A) People working in the same department can work in good coordination.
Reason (R) Organising promotes effective control and coordination within a
department due to similarity of task performed.
Alternatives
Assertion (A)
of Assertion (A)
9. Which of the following is an ideal situation?

(a) Authority < Responsibility
(b) Authority > Responsibility
THE QUALIFIERS
(c) Authority = Responsibility

Statement I Grouping of activities on the basis of functions is a part of divisional
organisation.
Statement II In functional structure, the organisational structure comprises separate
divisions.
Alternatives
(c) Both statements are correct.
(d) Both statements are incorrect.
11. To make the annual function of the school successful, the principal of the school
divided all the activities into task groups each dealing with a specific area like
rehearsals, decoration, stage management, refreshments, etc. Each group was placed
under the overall supervision of a senior teacher. Which step of organising is being
discussed here?
(a) Division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Reporting relationships
12. Identify the correct sequence of steps in the organising process.

(i) Departmentalisation
(ii) Identification and division of work
(iii) Establishing reporting relationship
(iv) Assignment of duties
(a) (i), (ii), (iii), (iv) (b) (ii), (iii), (iv), (i)
(c) (iii), (i), (ii), (iv) (d) (ii), (i), (iv), (iii)
13. Delegation of authority in a way gives enough room and space to the subordinates to
flourish their abilities and skill. How?
(a) Subordinates get a feeling of importance
(b) Subordinates get motivated to work
(c) Breaks the monotony of the subordinates
(d) All of the above
14. Everest Ltd. is engaged in manufacturing of refrigerators. The target of the

organisation is to manufacture 200 refrigerators a day. There is an occupational
specialisation in the organisation which promotes efficiency of employees. There is no
duplication of efforts in such type of organisation structure.
Identify the type of organisation structure described above.
(a) Formal (b) Divisional
(c) Functional (d) Informal
15. What is the optimum ratio for an organisation to work effectively and efficiently?
(a) Complete centralisation
(b) Mix of centralisation and decentralisation
(c) Complete decentralisation
THE QUALIFIERS
(d) Both independent in the same organisation
Answers
1. (b) 2. (b) 3. (a) 4. (a) 5. (b) For Detailed Solutions
6. (b) 7. (d) 8. (a) 9. (c) 10. (d) Scan the code
11. (c) 12. (d) 13. (d) 14. (c) 15. (b)
6. Marketing Management
1. ……………. covers all the activities required to physically move the goods from
manufacturers to customers.
(a) Place mix
(b) Price mix
(c) Product mix
(d) Promotion mix
2. Nitin is very particular to get his hair cut from Cutting Zone saloon of East Delhi.
Which type of service is it?
(a) Speciality service (b) General service
(c) Common service (d) All of these
3. Which of the following functions is restricted to promotion of goods and services

through salesmanship, so that title of the product is transferred from seller to buyer or
in other words product is converted into cost?
(a) Marketing (b) Selling
(c) Promotion (d) Physical distribution
4. Identify the process of classification of products into different groups, on the basis of
some of its important characteristics.
(a) Standardisation (b) Grading
(c) Product mix (d) Grouping
5. Assertion (A) Selling is the heart of marketing.

Reason (R) Marketing is wider in scope than selling which includes selling as its
essential part.
Alternatives
Assertion (A)
of Assertion (A)
6. Which of the following act as a silent salesman?

(a) Product (b) Price
(c) Packaging (d) Promotion
7. Assertion (A) Low initial price is regarded as the principal means for entering into
mass market for some new products.
Reason (R) Firms generally enter into production of new products with having excess
THE QUALIFIERS
capacity of the plant.

Alternatives
Assertion (A)
of Assertion (A)
8. PepsiCo offers ` 5 to the customer on return of empty bottle. Identify the technique
used by PepsiCo.
(a) Discount (b) Refund
(c) Quantity gift (d) Usable benefit
9. …………. refers to producing goods of predetermined specifications, which helps in

achieving uniformity and consistency in the output.
(c) Assorting (d) Sorting
10. Mahavir Pvt. Ltd. is a school bag manufacturing company. For the purpose of profit
maximisation, Alpna added a laptop pocket to the existing bag design. Which
marketing management philosophy is adopted by Alpna?
(a) Production concept (b) Product concept
(c) Selling concept (d) Marketing concept
11. If a manufacturer achieves a break through by developing a car engine, which can run
on both petrol and diesel, and this news is covered by television or radio or newspaper
in the form of news item, it would be termed as
(a) Publicity (b) Advertising
(c) Sales promotion (d) Personal selling
Statement I The societal marketing concept is focused on the community welfare.
Statement II Any physical object which creates value to customers can be marketed.
Alternatives
(a) Statement I is correct and Statement II is wrong
(b) Statement II is correct and Statement I is wrong
(c) Both the statements are correct (d) Both the statements are incorrect
13. Which of the following does not come under controllable factors?
(a) Price decisions (b) Packaging decisions
(c) Physical distribution decisions (d) Taxation
14. Amar wants to buy a washing machine for his family. When he visited Mangal
Electronics to make the purchase, he got confused. Which promotional tool brought
him to the shop and which promotional tool is required now to remove his confusion?
(a) Advertising, personal selling
(b) Personal selling, advertising
(c) Sales promotion, personal selling
(d) Public relations, advertising
15. Emuti company is adopting a promotional tool, which plays a persuasive, service and
informational role thereby link a business firm to its customers. Identify this
THE QUALIFIERS
promotional tool.
(a) Advertising (b) Personal selling
(c) Sales promotion (d) Public relations
Answers
1. (a) 2. (a) 3. (b) 4. (b) 5. (a) For Detailed Solutions
6. (c) 7. (a) 8. (b) 9. (a) 10. (b) Scan the code
11. (a) 12. (c) 13. (d) 14. (a) 15. (b)
CBSE
QUESTION BANK
Issued by Central Board of Secondary Education
Chap 01 2. In the above case “company’s objective is to

Nature and Significance of promote the sales of Indian handloom and
Management handicraft products.”
The above line focus on which feature of
Read the following text and answer the following
management?
questions on the basis of the same
(a) Management is an intangible force
Sana is the branch manager of ABC Handicrafts (b) Management is a goal oriented process
Pvt. Ltd. The company’s objective is to promote (c) Management is pervasive in nature
the sales of Indian handloom and handicraft (d) Management is a continuous process
products. Ans. (b) Management is a goal oriented process
It sells fabrics, furnishings, ready-mades and
household items are made out of traditional 3. With reference to the above case, at which
Indian fabrics. level of management Sana is working?
(a) Lower level (b) Top level
Sana decides quantities, variety, colour and (c) Middle level (d) Shop floor
texture of all the above items and then allocates Ans. (c) Middle level
resources for their purchase from different
suppliers. 4. “Sana suggested that they should keep the
She appoints a team of designers and crafts people silk bed covers for special festive occasions
in the company, who developed some prints for and offer the cotton bed covers on a regular
bed covers in bright colour on silk. basis to keep costs under control.”
Which function of management is
Although the products looked very attractive and highlighted in this context?
impressive, they were relatively expensive on the (a) Controlling (b) Staffing
front of affordability for an average customer. (c) Organising (d) Planning
Sana suggested that they should keep the silk bed Ans. (a) Controlling
covers for special festive occasions and offer the
cotton bed covers on a regular basis to keep costs Chap 02
under control. Principles of Management
CBSE QUESTION BANK
1. “She appoints a team of designers and Read the following text and answer the following
crafts people in the company, who questions on the basis of the same
developed some prints for bed covers in After completing her Bachelor in Fashion
bright colour on silk.” Designing from a well-known college in France,
Which function of management is Aditi has opened a boutique in a posh market in
highlighted in this context? Kolkata. She has divided the work in smaller units
(a) Controlling and each employee is well trained to perform
(b) Staffing
his/her task efficiently. The sales persons are
allowed to close a deal with a buyer by giving a
(c) Planning
maximum of 5 per cent discount, whereas the
(d) Directing
decision to give any further discount rests with
Ans. (b) Staffing
Aditi as the final authority.
In the earlier period of her business venture, Chap 03 Business Environment

employees were asked to put in extra hours of
Read the following text and answer the following
work. In return she had promised to give them a
questions on the basis of the same
special incentive within a year.
Therefore, when the business was doing well, she The name and taste of Coca-Cola is known to
honour her commitment by giving bonus to her almost each and every individual in India as well
employees. She also instructed her employees that as throughout the world.
communication from top to bottom should follow This carbonated soft drink holds the most market
the official lines of command. However, she tends share in the soft drink market and got itself a
to be more biased towards her female employees, special seat in each and every gathering.
when it comes to solve the conflicts among
employees. The Coca-Cola Company has on occasion
introduced other cola drinks under the Coke
1. Aditi has divided the work in smaller units name. The most common of these are Diet Coke,
and each employee is well trained to along with others including Caffeine free
perform his/her task efficiently. Which Coca-Cola, Diet Coke Caffeine free, Coca-Cola
principle of management is being followed
Zero Sugar, Coca- Cola Cherry, Coca-Cola Vanilla
here?
and the list goes on.
(a) Centralisation and decentralisation
(b) Division of work It has capitalised on each and every opportunity
(c) Discipline to market itself effectively and place itself in the
(d) Order middle of every gathering.
Ans. (b) Division of work The main reason for such an outstanding
2. ‘‘The sales persons are allowed to close a placement of product goes to the way they have
deal with a buyer by giving a maximum of 5 established the connection between every
per cent discount, whereas the decision to occasion and the need for Coke to be present there,
give any further discount rests with Aditi as product design and creative advertising.
the final authority.’’ Identify the principle of 1. In the context of the above given case,
management being followed here. identify one valid importance of business
(a) Centralisation and decentralisation environment.
(b) Authority and responsibility (a) Enables a firm to identify opportunities and
(c) Unity of command getting first mover advantage
(d) Unity of direction (b) Uncertainty
Ans. (a) Centralisation and decentralisation (c) Delay in action
(d) Pervasive function
3. “Therefore, when the business was doing
Ans. (a) Enables a firm to identify opportunities and
well, she honoured her commitment by getting first mover advantage
giving bonus to her employees.” Which
principle of management is being 2. Identify the feature of business
highlighted here? environment which the Coca-Cola
(a) Discipline Company managed to get in their favour.
(b) Order (a) Complex
(c) Remuneration to employees (b) Specific and general forces
CBSE QUESTION BANK
(d) Unity of direction (c) Futuristic

Ans. (a) Discipline (d) Mental exercise
Ans. (b) Specific and general forces
4. Aditi tends to be more biased towards her
female employees, when it comes to solve 3. Which business environment did
the conflicts among employees. Which Coca-Cola majorly tap into?
principle is being violated here? (a) Technological environment
(a) Discipline (b) Order (b) Social environment
(c) Equity (d) None of the above (c) Political environment
Ans. (c) Equity (d) Economic environment
Ans. (b) Social environment
4. Which of the following is not a product of 1. “In 2005, with the aim to accelerate growth
Coca-Cola? the company had gone through several
(a) Diet Coke Caffeine Free rounds of meetings and discussions.” What
(b) Coca-Cola Zero Sugar is the objective mentioned here according to
(c) Coca-Cola Avocado the process stated here?
(d) Coca-Cola Cherry (a) Developing premises
Ans. (c) Coca-Cola Avocado (b) Growth and development
(c) Launching IT enabled system
Chap 04 Planning (d) Cost cutting
Read the following text and answer the following Ans. (b) Growth and development
questions on the basis of the same 2. “In 2008, the company suffered loss in many
Simplex limited had been taken over by Mundhra projects due to the great recession despite
Group immediately following India’s taking many cost cutting measures.”
independence. Since then it enjoys a rich record of Which limitation of the management
industry presence and experience. process is indicated here?
In 2005, with the aim to accelerate growth the (a) It fails to cope with sudden changes
company had gone through several rounds of (b) It involves huge cost
meetings and discussions before launching ERP (c) It requires critical thinking
system to attract large projects. (d) Economic environment
Ans. (a) It fails to cope with sudden changes
The management had done effective forecast and
critical thinking regarding allocation of resources 3. State whether the given statement is True or
to reduce wastage. False
For this purpose, the company had laid down “The management had done effective
multiple courses of action to meet the challenge of forecast and critical thinking regarding
adverse situations. allocation of resources to reduce wastage.”
In 2008, the company suffered loss in many Ans. True
projects due to the great recession despite taking
many cost cutting measures.
4. “The management had taken utmost care
regarding the possible outcome and timely
The management had taken utmost care review of the plans to achieve the set target
regarding the possible outcome and timely review during that hard time.” Which is the last
of the plans to achieve the set target during that step of the process mentioned here?
hard time. (a) Implementation of plan
In 2010, the system implemented successfully (b) Timely execution of projects
which subsequently helped the company to (c) Follow up
execute numerous projects with precision and (d) To prepare alternative course of action
timeliness. Ans. (c) Follow up
CBSE QUESTION BANK
Latest CBSE
SAMPLE PAPER
Latest Sample Question Paper for Class XII (Term I)
Issued by CBSE on 2 Sept 2021
Business Studies Class 12 (Term I)

Instructions
1. There is an internal choice provided in each Section.
(a) Section A – Contains 24 questions. Attempt any 20 questions.
(b) Section B – Contains 24 questions. Attempt any 20 questions.
(c) Section C – Contains 12 questions. Attempt any 10 questions.
2. All questions carry equal marks.
3. There is NO negative marking.
Maximum Marks : 40 Time : 90 Minutes
Section A
1. “What distinguishes a successful manager from a less successful one is the ability to put
the principles into practice”? Which aspect of the nature of management is highlighted in
the above statement?
(a) Management as a science
(b) Management as an art
(c) Management as a profession
(d) Management is an intangible force
2. ……… provides a rational approach for setting objectives and developing appropriate
Latest CBSE SAMPLE PAPER
courses of action for achieving predetermined objectives.

(a) Directing (b) Staffing
(c) Planning (d) Controlling
3. Marketing mix is the set of ……… that the firm uses to pursue its marketing objectives
in the target market.
(a) production tools (b) promotional tools
(c) marketing tools (d) selling tools
4. Which level of management is responsible for the welfare and survival of the
organisation?
(a) Top level of management (b) Middle level of management
(c) Supervisory level (d) Both (b) and (c)
5. Name the principle of management given by Fayol which when applied would mean
that the workers and management both honour their commitments without any
prejudice towards one another.
(a) Discipline (b) Mental revolution
(c) Remuneration of employees (d) Scalar chain
6. A brand or part of the brand that is given legal protection is called ……… .
(a) Brand mark (b) Trademark
(c) Brand (d) Brand name
7. Identify the dimension of the characteristic of management “it is multidimensional”,
which specifies that the task of management is to make the strengths of human
resources effective and their weaknesses irrelevant towards achieving the
organisation’s objectives.
(a) Management of work
(b) Management of people
(c) Management of operations
(d) Management of goals
8. ……… involves a variety of programmes designed to promote and protect a company’s
image and its individual products in the eyes of the public.
(c) Publicity (d) Public relations
9. Which type of organisational structure will you suggest for a firm which has diversified
activities and operations requiring a high degree of specialisation?
(a) Centralised structure (b) Decentralised structure
(c) Divisional structure (d) Functional structure
10. “Changes or events cannot be eliminated but they can be anticipated and managerial
responses to them can be developed” is suggested by the following importance of
planning.
(a) Planning facilitates decision-making (b) Planning promotes innovative ideas
(c) Planning provides direction (d) Planning reduces the risks of uncertainty
11. “Grouping similar nature jobs into larger units called departments” is the step in the
process of one of the functions of management. Identify the function of management.
(a) Planning (b) Organising
(c) Directing (d) Staffing
12. The statement “Planning is a primary function”, suggests that ……… .

(a) planning precedes other functions
(b) planning requires logical and systematic thinking
(c) plan is framed, it is implemented, and is followed by another plan, and so on
(d) planning is required at all levels of management as well as in all departments of the
organisation
13. A major decision area under one of the functions of marketing is the decision regarding
marketing intermediaries to be used. Name the function.
(a) Physical distribution
(b) Gathering and analysing market information
(c) Promotion
(d) Transportation
14. “The nature of the relationship of our country with foreign countries”, is a major element of
which of the following components of the business environment?
(a) Social environment (b) Legal environment
(c) Political environment (d) Economic environment

(a) Marketing is a social process
(b) Focus of the marketing activities is on customer needs
(c) Marketing is merely a post production activity
(d) Marketing mix is a wider term than product mix
16. Planning is closely connected with ……… and ……… .

(a) responsibility and accountability (b) delegation and decentralisation
(c) stability and security (d) creativity and innovation
17. ……… is an important function of marketing which is important not only for
protection of the product but also serves as a promotional tool.
(a) Grading (b) Labeling
(c) Packaging (d) Branding
18. As part of regulations to be followed by advertisers, the advertisement for a new brand
of baby food for infants provides important information for potential buyers that it is
“not recommended for infants under the age of four months”. Which dimension of the
business environment is highlighted in the above statement?
(a) Social environment (b) Legal environment
19. The principle of management given by Fayol which aims at preventing overlapping of
activities is
(a) division of work (b) unity of command
(c) unity of direction (d) order
20. ……… ensures that the subordinate performs tasks on behalf of the manager thereby
reducing his workload and providing him with more time to concentrate on important
matters.
(a) Decentralisation (b) Delegation of authority
(c) Authority (d) Accountability
21. ……… is a process of classification of products into different groups on the basis of
some important characteristics such as quality, size, etc.
(c) Product development (d) Selling
22. The sum total of all individuals, institutions and other forces that are outside the control
of a business enterprise but that may affect its performance is known as ……… .
(a) Business environment (b) Social environment
23. Name the concept that refers to the number of subordinates that can be effectively
managed by a superior and determines the number of levels of management in the
organisation.
(a) Organisation structure (b) Span of management
(c) Hierarchy of authority (d) Delegation of authority
24. Taylor believed that there was only one best method to maximise efficiency. This
method can be developed through study and analysis. Identify the principle of
scientific management being discussed above.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) Cooperation, not individualism
Section B
25. India has launched its most advanced Geo-imaging satellite which will allow better
monitoring of the subcontinent, including its borders with neighbouring countries, by
imaging the country 4-5 times a day.
The satellite is capable of near real time monitoring of floods and cyclones. The factor
constituting the business environment being discussed above is
(a) Social environment (b) Economic environment
(c) Technological environment (d) Political environment
26. Which step in the process of planning will precede the step in which the manager is
required to make certain assumptions about the future, which are the base material
upon which the plans are drawn?
(a) Implementing the plan (b) Identifying alternative courses of action
(c) Setting objectives (d) Selecting an alternative
27. “Availability and affordability of the product were considered to be the key to the
success of a firm.” Identify the concept of marketing management highlighted by this
statement.
(c) Societal concept (d) Marketing concept
28. Aiming to revive Jammu and Kashmir’s attraction as a top location for film shooting
the J & K film policy, 2021 offers a host of incentives to the filmmakers, such as
subsidies and low long-term interest rates, for films with patriotic and certain other
themes shot in J & K, for giving work opportunities to local artistes, etc. This will have
an impact on business enterprises in the state.

Which component of business environment is highlighted above?
(a) Specific and general forces (b) Technological environment
(c) Economic environment (d) Totality of external forces
29. The topper group is looking to make a foray into manufacturing of semiconductors
and it has set up a business to seize the business opportunity and add to its prospects
in the long-run.
The company has already pivoted into a number of new projects like electronics, 5G
network equipment, as well as semiconductors. Which economic objective of
management does the business seek to fulfill?
(a) Survival (b) Growth
(c) Profit (d) Efficiency
30. Product cost sets the lower limits of the price, the utility provided by the product and
the intensity of demand of the buyers sets the upper limit.
So, in case of inelastic demand, total revenue ……… when price increases.
(a) rises (b) falls
(c) constant (d) Both (a) and (b)
31. “A manager in a conscious manner has to ensure that even where members of a
department willingly cooperate, coordination gives direction to the willing spirit.” The
characteristic of coordination being highlighted above is
(a) coordination is the responsibility of all managers.
(b) coordination is a deliberate function.
(c) coordination integrates group efforts. (d) coordination is a continuous process.
32. For the following two statements choose the correct option.
Statement I Accountability can be delegated.
Statement II Responsibility can be delegated completely.
Alternatives
33. The CEO of Radhe Cycles Pvt. Ltd. Mr. Kumar wants to get maximum output from the
employees at a competitive cost. On the other hand Ramakaant, an employee of the
company wants to get the maximum salary while working the least. The principle of
management given by Fayol being violated by Ramakaant is ……… .
(a) remuneration (b) equity
(c) discipline
(d) subordination of individual interest to general interest
34. Arrange the following steps in the process of organising in the correct sequence.
(i) Assignment of duties (ii) Departmentalisation
(iii) Identification and division of work (iv) Establishing reporting relationship
Codes
(a) (i), (ii), (iv), (iii) (b) (iii), (ii), (i), (iv)
(c) (iii), (ii), (iv), (i) (d) (ii), (iii), (i), (iv)
35. The production department at Karishmaa Ltd., a firm manufacturing readymade

garments for men has an objective to increase production by 10% but the sales
department does not approve of the increase in production, till changes are brought
about in the product to incorporate latest fashion. These kinds of conflicts bring to light
the following importance of the force that can help to accomplish the linking of
activities of various departments.
(a) Growth in size (b) Functional differentiation
(c) Specialisation (d) Efficiency
36. Planning requires logical and systematic thinking rather than guess work. The feature
of planning being referred to in the above statement is
(a) planning is a continuous process (b) planning is futuristic
(c) planning is pervasive (d) planning is a mental exercise
37. Silico Ltd. has appointed the former consulting executive of Shri Shakti Ltd. Rajan Bahl
as its Vice-President.
What will be his basic task?
(a) To integrate diverse elements and coordinate activities of different departments.
(b) To carry out plans formulated by top managers.
(c) To oversee the efforts of the workforce.
(d) Help to maintain quality of output.
38. The marketing management philosophy which is based on the premise that any
activity which satisfies human needs but does not pay attention to the ethical and
ecological aspects of marketing cannot be justified is known as
(a) marketing concept (b) societal marketing concept
(c) production concept (d) product concept
39. Ravi joined a marketing firm as a sales manager. On his first day in the company,
during the orientation programme, the CEO of the company told Ravi that he will have
to simultaneously perform the functions of management (planning, organising,
staffing, directing, controlling) all the time.
Which characteristic of management was the CEO referring to?
(a) Management is a continuous process (b) Management is all pervasive
(c) Management is multidimensional (d) Management is goal oriented
40. Unlike professions such as medicine or law which require a practising doctor or lawyer
to possess valid degrees, no where in the world is it mandatory for a manager to
possess any such professional degree. Identify the characteristic of the profession being
discussed above which is not being strictly met by management.
(a) Well defined body of knowledge (b) Restricted entry
(c) Professional association (d) Ethical code of conduct
41. “Following a pre-decided plan, when circumstances have changed, may not turn out to
be in the organisation’s interest.” The limitation of planning being referred to in the
above statement is ……… .
(a) planning does not guarantee success
(b) planning may not work in a dynamic environment
(c) planning leads to rigidity
(d) planning is a time consuming process
42. The technique of scientific management given by Taylor, which aims to establish
interchangeability of manufactured parts and products is ……… .
(a) method study (b) motion study
(c) standardisation (d) differential piece wage system
43. For the following two statements, choose the correct option.
Statement I Advertising is an impersonal form of communication.
Statement II Advertising lacks direct feedback.
Alternatives
44. KTX group is rolling out an initiative to help create wealth for its employees through
the implementation of employee stock option. Through motivation and leadership the
management will help individuals to develop team spirit, cooperation and
commitment to the success of the group. The following importance of management is
highlighted above.
(a) Management helps in achieving personal objectives
(b) Management helps in the development of society
(c) Management creates a dynamic organisation
(d) Management increases efficiency
45. If there is a plan to increase production then more labour, more machinery will be
required. This step in the process of planning will involve organising for labour and
purchase of machinery. Identify the step in the planning process being discussed above.
(a) Identifying alternative courses of action
(b) Setting objectives
(c) Selecting an alternative
(d) Implementing the plan
46. Taylor proposed eight specialists from whom each worker will have to take orders from as
part of the technique of functional foremanship specified by him. Those with technical,
mastery, intelligence and grit may be given ……… work. Those with energy and good
health may be assigned ……… work.
(a) planning, execution (b) execution, planning
(c) production, planning (d) implementation, production
47. A person feeling hungry may get food by offering to give money or some other
product or service in return to someone who is willing to accept the same for food. The
important feature of marketing illustrated above is
(a) exchange mechanism (b) customer value
(c) creating a market offering (d) needs and wants
48. Assertion (A) Planning is futuristic.

Reason (R) Planning is concerned with the future which is certain and does not require
forecast.
Alternatives
(a) Both Assertion (A) and Reason (R) are correct
(b) Assertion (A) is correct, but Reason (R) is incorrect

(c) Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation
of Assertion (A)
(d) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct
explanation of Assertion (A)
Section C
Direction Read the following text and answer question number 49 to 54 on the basis of the same.
‘Saarthi’, the name has been associated with the manufacturing and sale of fashion products since 1960,
when Kapil Saarthi opened his first retail fashion clothing outlet in Ahmedabad. Sarthi cosmetics was
incorporated in India in 1940, and became a member of the S & M family of companies in 1959.
Sarthi perfumes began operations in Gujarat in an existing administrative S&M facility in 1985. An
important difference between S&M and most other companies is that instead of operating as one large
corporation it operates as 180 smaller companies each focused on a specific product and area, implying
selective dispersal of authority, recognising the decision makers need four autonomy, as decision-making
authority is pushed down the chain of command.
It enables the company to maintain short lines of communication with customers and employees, and
accelerate the development of talent.
49. Identify the philosophy that is being followed by S & M through which it is dividing the
decision-making responsibilities among hierarchical levels.
(a) Delegation of authority (b) Decentralisation of authority
(c) Division of work (d) Span of management
50. ‘Why is there, need to apply the philosophy being followed by S & M, with caution?
(a) As it can cause a delay in communication
(b) As it can cause disintegration of the organisation
(c) As it can increase the workload of the top management
(d) As it can reduce the chances of growth of the firm.
51. The application of the philosophy discussed above can foster a sense of competition
amongst the departments, which in turn will help the firm in the following manner.
(a) Facilitates growth (b) Better control
(c) Relief to top management (d) Quick decision-making
52. Quote the line from above which highlights the importance of the philosophy towards
providing management education to employees.
(a) “Maintain short lines of communication‘‘
(b) ‘Accelerate the development of talent’
(c) ‘Selective dispersal of authority;
(d) ‘Recognises decision makers need for autonomy’
53. As “The decision-making authority is pushed down the chain of command” at S & M
enterprises, it provides the benefit of quick decision-making to the organisation
because
(a) there is no requirement for approval from many levels
(b) organisation is able to generate more returns
(c) there are innovative performance systems
(d) it’s a means of management education
54. The philosophy being followed by S & M is not followed by most other companies. This tells
us that the philosophy is

(a) optional
(b) compulsory
(c) limited to superior and his subordinate
(d) merely done to lessen the burden of the manager
55. Mohammad Kanjiwal, a beekeeper since April, 2021 is now part of the growing tribe of
at least 50 urban dwellers across Maharashtra raising bees and harvesting honey in
their balconies, rooftops and back gardens. As he had been focussed on eating right the
thought of domesticating honey bees to promote healthy consumption habits and
seeing honey being cultivated right before his eyes was mesmerising for him. Identify
the factor constituting the general environment being discussed above.
(a) Economic environment (b) Social environment
56. Zolo, a marketer of cars having 40% of the current market share of the country aims at
increasing the market share to 70% in next few years. For achieving this objective the
manager of the company specified the action programme covering various aspects.
Identify the function of marketing discussed above.
(a) Customer support services
(b) Gathering and analysing market information
(c ) Product designing and development
(d) Marketing planning
57. Style and Fit, a footwear manufacturing company has decided to offer 50% off on all its
products due to the fall in demand of its products as more efficient substitutes have
been introduced in the market. Identify the pricing objective included by the firm
which has made the firm resort to discounting its product.
(a) Obtaining market share leadership
(b) Surviving in the competitive market
(c) Attaining product quality leadership
(d) Protect the interest of public
58. A sanitizer manufacturing company wants to become a market leader. For this purpose
the manager follows an activity with certain logical steps. The first step suggested by
him is to increase profits by at least 30% in the next quarter. What will be the last step
of the activity being followed by the manager?
(a) Follow-up action
(b) Identifying alternative course of action
(c) Setting objectives
(d) Evaluating alternative courses of action
59. In Shalleen Pvt. Ltd. there is one head Shalleen who has two lines of authority under
her. One line consists of Sara-Rajat-Abhishek-Ismail-Chris. Another line of authority
under Shalleen is Lata-Rupa-Geet-Hussain Preeti. According to a Principle of
management given by Fayol, if Ismail has to communicate with Hussain who is at the
same level of authority then illustrate the route he will have to traverse.
(a) Ismail-Abhishek-Rajat-Sara-Shalleen-Lata- Rupa-Geet-Hussain
(b) Hussain-Geet-Rupa-Lata-Shalleen-Sara- Rajat-Abhishek-Ismail
(c) Ismail-Chris-Shalleen-Preeti-Hussain
(d) Ismail-Abhishek-Rajat-Sara-Lata-Rupa- Geet-Hussain
60. According to the technique of scientific management, “Differential piece wage system”
How much more will a worker making 60 units earn as compared to a worker making
49 units? If the standard output per day is 50 units and those who make standard
output or more than standard get ` 75 per unit and those below get ` 65 per unit.
(a) ` 4,500
(b) ` 3,185
(c) ` 1,315
(d) ` 3,250
ANSWERS
1. (b) 2. (c) 3. (c) 4. (a) 5. (a) 6. (b) 7. (b) 8. (d) 9. (d) 10. (d)
11. (b) 12. (a) 13. (a) 14. (c) 15. (c) 16. (d) 17. (c) 18. (b) 19. (c) 20. (b)
21. (b) 22. (a) 23. (b) 24. (b) 25. (c) 26. (c) 27. (a) 28. (c) 29. (b) 30. (a)
31. (b) 32. (d) 33. (d) 34. (b) 35. (b) 36. (d) 37. (a) 38. (b) 39. (a) 40. (b)
41. (c) 42. (c) 43. (c) 44. (a) 45. (d) 46. (a) 47. (a) 48. (b) 49. (b) 50. (b)
51. (a) 52. (b) 53. (a) 54. (a) 55. (b) 56. (d) 57. (b) 58. (a) 59. (a) 60. (c)
EXPLANATIONS
1. Management as an art can be referred to as 19. In unity of direction principle, there is one
skillful and personal application of systematic head and one plan, so no duplication and
knowledge to bring desired results. overlapping of activities are there.
5. Principle of discipline means manager and 24. According to this principle, there should be
worker should follow the rules and scientific study and analysis of each element of
regulations made by the organisation to a job, in order to replace the old rule of thumb
achieve the desired objectives. approach or hit and trial method.
7. Management of people implies management 25. Technological environment includes forces
of Individuals, i.e., to allot authorities, relating to scientific improvements and
responsibilities and establishing reporting innovations.
relationships.
26. Developing premises step involves deciding
9. In functional structure, organisations deal in the future course of action under which every
only one product and there is a functional manager has to make certain assumptions
specialisation in it. about the future.
10. Planning cannot eliminate the risk of The preceding step to this step is setting
uncertainty but it can minimise it. objectives.
11. Grouping similar nature jobs in a department 28. Economic environment includes interest rates,
is one of the step of organising process i.e., tax rates, subsidies which affect the economy
departmentalisation. of the country.
12. Planning lays down the base for other 29. In this situation, company already pivoted
functions of management as all other into number of projects, so growth is the
managerial functions are performed within objective that the business seeks to achieve.
the framework of the plans drawn.
31. A manager has to coordinate the efforts of
13. Marketing intermediaries means channel of different people in a deliberate manner even
distribution used by the company. when members of a department willingly
14. The nature of relationship of our country with coordinate and work.
another country is a political issue. 32. Responsibility cannot be entirely delegated
15. Marketing starts before the production while accountability can never be delegated.
process and continue even after the goods 33. Ramakant violates principle of subordination
have been sold. of individual interest to general interest, as this
16. While planning, many new ideas arises which principle says that all the employees should
results into creative, innovative and work for the interest of the organisation.
foresighted attitude among the managers. 36. Planning requires application of mind
18. Legal environment is the framework of laws involving foresight, intelligent imagination
and various legislations within which and sound judgement.
business transactions are to take place.
37. To integrate diverse elements and coordinate beliefs and ethics of a society in which
activities of different departments. business enterprises operates.
39. It is a continuous process which includes 56. Marketing planning should be developed
performing various functions simultaneously. to achieve the marketing objectives of the
firm.
41. Planning restricts the individual skills,
initiative and creativity because employees 57. To survive in the competitive market,
are required to work strictly in accordance company has to give offers to increase sales
with the plans which may create difficulty. and attract customers.
44. A manager motivates and leads his team in 58. The first step of planning process is setting
such a manner that individual members are objectives and the last step is follow-up
able to achieve personal goals while action.
contributing to the overall organisational
59. As per the principle of scalar chain, if
objectives.
Ismail has to communicate with Hussain,
45. This step is concerned with transforming then he has to follow the above mentioned
the plan into action by activating other chain.
managerial functions.
60. Lower standard employee gets
48. Planning is concerned with the future which is
= 49 ´ 65 = ` 3,185
uncertain and requires forecast.
Higher standard employee gets
55. Social environment represents the customs,
= 60 ´ 75 = ` 4,500
traditions, values and culture, social trends,
Difference = 4,500 – 3,185 = ` 1,315
SAMPLE PAPER 1
BUSINESS STUDIES
A Highly Simulated Practice Questions Paper
for CBSE Class XII (Term I) Examination
Instructions
2. Each question carry 0.80 marks.
Maximum Marks : 40
Roll No. Time allowed : 90 Mins.
Section A
1. “In an organisation, employees are happy and satisfied, there is no chaos and the effect
of management is noticeable.” Which characteristic of management is highlighted by
this statement?
(a) Management is goal oriented process(b) Management is all pervasive
(c) Management is an intangible force (d) Management is a group activity
2. Making assumptions for future is referred as ………… .

(a) Making derivative plans (b) Making policy
(c) Setting planning premises (d) All of these
3. Range of products or variety or assortment of products which a company is

manufacturing is called ………… .
(a) Product mix (b) Place mix
(c) Price mix (d) Promotion mix
SAMPLE PAPER 1
4. Which of the following have no representative professional organisations available?

(a) Law (b) Management
(c) Medical (d) Accountancy
5. On what basis, the principles of management were derived?

(a) On the basis of observation (b) On the basis of experimental studies
(c) Both (a) and (b) (d) None of these
6. The time period between receiving of order and delivery of goods and services is called
(a) Order processing time (b) Inventory
(c) Warehousing (d) Transportation
7. Authority-responsibility relationship binds individuals as superiors and subordinates

and give rise to different ………… in an organisation.
(a) functions (b) levels
(c) objectives (d) policies
8. To reach the mass customer in non-personal manner, the following element of

promotion mix is used.
(a) Advertisement (b) Sales promotion
(c) Personal selling (d) Public relation
9. If a company deals in metal products and plastic products, what type of organisation
will be useful for it?
(a) Informal (b) Functional
(c) Both (a) and (b) (d) Divisional
10. Planning establishes base or standard for ………… .

(a) organising (b) staffing
(c) directing (d) controlling
11. The main purpose of ………… is to reduce the work load of managers.
(a) delegation (b) organisation
(c) functional structure (d) divisional structure
12. All other managerial functions are performed within the framework of the plans
drawn. Identify the related feature of planning.
(a) Planning focuses on achieving objectives
(b) Planning is pervasive
(c) Planning is futuristic
(d) Planning is primary function of management
13. The communication tool which is used to improve the image or goodwill of the
company is called ………… .
(a) Advertisement (b) Public relation
14. ‘‘Business environment is the sum total of all things external to business firms and, as
such, is aggregative in nature.’’ Which feature of business environment is highlighted
by this statement?
(a) Specific and general forces (b) Dynamic nature
SAMPLE PAPER 1
(c) Inter-relatedness (d) Totality of external forces
15. The first level packing in which product is initially packed, is called
(a) Primary packing (b) Secondary packing
(c) Transportation packing (d) None of these
16. By comparing ………… with standards, manager can know whether the goals are
achieved or not.
(a) risk (b) ideas
(c) actual performance (d) costs
Statement I Selling concept focuses on customer satisfaction.
Statement II Packaging and labelling are same or synonyms of each other.
Alternatives
18. Which of the following does not characterise the business environment?
(a) Uncertainty (b) Employees
(c) Relativity (d) Complexity
19. Mohan, the manager of a business undertaking is very lax with his fellow employees
and subordinates. He does not give them parameters or rules for reporting to work and
completion of assignments. Which principle of management is being overlooked?
(a) Division of work (b) Discipline
(c) Scalar chain (d) Initiative
20. Divisional structure focuses on ……… specialisation.

(a) product (b) function
(c) task (d) work
21. The firms can charge high price for their product, when the product has
(a) low demand and low utilities (b) high demand and high utilities
22. Composition of family is an example of ………… environment.

(a) political (b) social
(c) legal (d) technological
23. Who reports to whom, is decided in the following step of organising process?
(a) Identifying the activities (b) Grouping the activities
(c) Assignment of duties (d) Establish authority relationship
24. ………… keeps machines, tools, materials etc. ready for operations by concerned
workers.
(a) Gang boss (b) Repair boss
(c) Instruction card clerk (d) Route clerk
Section B
SAMPLE PAPER 1
25. ‘Riya Health Care Limited’, established with the objective of taking care of the people’s
health. This was the first company of this type established in its field. There being no
competition in the market was something good for the company. But when the
company’s business was about to pick up, several competing companies got
established in that field. Consequently, the comfortable position of the company came
to an end. Hardly two years had gone since the company was established, when there
occurred a big change in the priorities of the customers. Now they got tempted
towards the local health promoting products instead of the company’s products. In this
way, the company had to face great difficulties to keep itself established in the market.
Which feature of business environment does the above event acquaint us with?
(a) Dynamic nature (b) Inter-relatedness
(c) Totality of external forces (d) Specific and general forces
26. ‘Coco Private Ltd.’ is a well-known company making drinkable products. This
company has left behind several competing companies. Some of the students of
management felt curious to know the secret of this company’s success. They went to
the company and examined the planning function of management. They found that
(i) High level management, does planning for the whole organisation
(ii) Middle level management, does departmental planning and
(iii) Low level management, plans the daily activities to be completed by the workers.
It was concluded that the planning was being done at all levels of management and in
all the departments, but there was difference in the area of planning. The students
noticed that the people doing planning had a spirit of dedication. This was the very
secret of the company’s success.
Identify the feature of planning discussed in the above event.
(c) Planning involves decision-making (d) Planning is pervasive
27. What refers to the process of identification of products into different parts, on the basis
of some of its important features like quality, size etc?
(a) Standardisation (b) Labelling
(c) Grading (d) Branding
28. Assertion (A) Entry of new firms in the market may make an enterprise think a fresh
about how to deal with the situations.
Reason (R) Business environment assist in planning and policy formulation.
Alternatives
(c) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation
of Assertion (A)
29. ………… gives a common focus to group efforts to ensure that performance is as
planned and scheduled.
(a) Coordination (b) Controlling (c) Directing (d) Organising
30. A soap manufacturing company is spending substantial amount of money to persuade

the target customers to buy its soaps through advertisements, personal selling and
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sales promotion techniques. Which element of marketing mix is referred here?

(a) Product (b) Price (c) Place (d) Promotion
31. Ashoka handloom industries is a company manufacturing bedcovers/bed sheets.

Mr Ashok Khadhidhari is the production manager in the company. His design team
developed some prints for bedcovers in bright colours on silk. Although they looked
very impressive, the use of silk made the product too expensive for the average
customer. Praising their effort, Mr Ashok suggested that they keep the silk bedcovers
for special occasions like Diwali and Christmas and offer the bedcovers on a regular
basis.
Name the main function of management to which the above case is related.
(c) Directing (d) Controlling
32. Selective dispersal of authority leads to ………… .

(a) delegation (b) centralisation
(c) decentralisation (d) None of these
Statement I Not only employee-turnover, but frequent termination or rotation must
also be avoided.
Statement II Employee must be provided the feeling of job security. With feeling of
insecurity of job, the employees cannot contribute their maximum.
Alternatives
34. Rishabh has joined as a Creative Head in an entertainment company. He always

ensures that the work has been divided into small and manageable activities and also
the activities of similar nature are grouped together. Identify the related step in
organising process being mentioned in the above lines.
(a) Identification and division of work (b) Departmentalisation
(c) Assignment of duties (d) Establishing reporting relationships
35. “Coordination is not a separate function of management but it happens to be the final
truth of all functions.” In what context, this observation has been made?
(a) Coordination is the essence of management
(b) Coordination is not established automatically
(c) Coordination is a continuously moving process
36. ………… is a feature of planning which is also referred to as primacy of planning.

(a) Pervasive
(b) Primary function of management
(c) Continuous
(d) Integrating
37. Assertion (A) There is a kind of cost-benefit analysis involved and the relationship
between inputs and outputs.
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Reason (R) If by using less resources more benefits are derived, then effectiveness has
increased.
Alternatives
of Assertion (A)
(d) Both Assertion (A) and Reason (R) are correct but Reason (R) is not the correct
38. Several electronics companies have been selling their products at attractive prices with
innovative features. All companies are focusing on people and profit but no company
bothers for planet that how to dispose electronic waste. Which marketing philosophy
are they neglecting?
(a) Marketing concept (b) Societal marketing concept
(c) Selling concept (d) Product concept
39. Shivani has started a new business of providing organic vegetables and fruits, although
she does not have many competitors in the market, but still she tries to offer the goods at
a minimum price so that she can sell her goods and is able to survive in the market. She
also make sure that people with a lesser income can also buy her goods.
State the two objectives she is trying to achieve.
(a) Organisation and personal (b) Organisation and social
(c) Social and personal (d) All of these
40. Hari Private Ltd., a biscuit manufacturing company set the target to produce 500
packets of biscuits per month at the cost of `10 per packet. Ajay, a worker, worked
double shift and produced around 600 packets at the cost of `15 per packet. Another
worker Vijay mainly focused on cost and handled resources very carefully, so he
produced 480 packets at the cost of `8 per packet. On reading the above situation, what
quality both the workers Ajay and Vijay are lacking?
(a) Effectiveness and efficiency (b) Efficiency and effectiveness
(c) Both are lacking effectiveness (d) Both are lacking efficiency
Statement I Planning gives guarantee of success.
Statement II Planning is a function of middle level managers.
Alternatives
42. ………… study refers to finding the one best way to perform a task.
(a) Time (b) Motion (c) Fatigue (d) Method
43. Assertion (A) Under production philosophy, greater emphasis was placed on
improving the production and distribution efficiency of the firms.
Reason (R) It was assumed that buyers can be manipulated.
Alternatives
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of Assertion (A)
44. The words cooperation and coordination are

(a) opposite (b) synonym
(c) complementary (d) All of these
45. Generally, it is thought that planning is related to the planning cycle. It means that a
plan is framed, it is implemented and it is followed by another plan and so on. The
above statement is related to a feature of planning, identify it.
46. A purchase manager of a company has to purchase 500 tonnes of raw material. Apart
from the other suppliers in the market, his son also supplies that raw material. The
manager purchases the raw material from the firm of his son at a rate higher than the
market rate.
Which principle of management has been violated in this situation?
(a) Unity of command
(b) Unity of direction
(c) Subordinating personal interest to general interest
(d) Equity
47. Firm shares and informs all the details about the product to customers through
………… .
(a) packaging (b) labelling
(c) grading (d) standardising
48. Mr. Neeraj Chopra won gold medal in recent Olympics held in Japan after he has set
the goal. He learned many techniques from foreign coaches also. Which of the
following steps of planning is involved here?
(a) Development of premises (b) Listing out alternatives
(c) Evaluating alternatives (d) Setting objectives
Section C
Direction Read the following case study and answer question number 49-54 on the basis of the same.
HLU Ltd is a MNC operating in more than 100 countries across the globe. The company mainly
manufactures FMCG (Fast Moving Consumer Goods) which includes soaps, food items,
cosmetics, etc. To facilitate specialisation, the company grouped the jobs related to one product
under one department. Once the jobs are grouped, they are assigned to the employees. The
company is very stringent in establishing the relationship of who reports to whom. This removes
ambiguity in transfer of information and instructions. The company also emphasises on
delegation. They believe that it leads them to innovate which helps to strengthen the company’s
competitive position. It also trains subordinate to deal with challenges.
49. Which function of management is highlighted in the given case?

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(c) Staffing (d) Directing
50. As per the above said case, which structure is followed by HLU Ltd?
(c) Both (a) and (b) (d) Can’t be determined
51. Which step of organising is highlighted in the lines, “To facilitate specialisation, the
company grouped the jobs related to one product under one department”?
(a) Identification of work (b) Assignment of duties
(c) Departmentalisation (d) Establishing reporting relationships
52. Which importance of organising is highlighted in the lines, “The company is very
stringent in establishing the relationship of who reports to whom. This removes
ambiguity in transfer of information and instructions”?
(a) Benefits of specialisation (b) Clarity in working relationships
(c) Adaptation to change (d) Expansion and growth
53. Which importance of organising is highlighted in the lines, “The company also
emphasises on delegation. They believe that it leads them to innovate which helps to
strengthen the company’s competitive position. It also trains subordinate to deal with
challenges”?
(a) Optimum utilisation of resources (b) Effective administration
(c) Development of personnel (d) Expansion and growth
54. “The company is very stringent in establishing the relationship of who reports to
whom.” Which step of organising is highlighted in the given lines?
(a) Identification of work (b) Assignment of duties
(c) Departmentalisation (d) Establishing reporting relationships
55. ‘Sarika Motors Limited’ is a famous vehicle manufacturing company. The Research and
Development department of the company is very strong. The manager of the
department, Mr. Gopal Rai, keeps a sharp eye on the business environment. On the
basis of the data given by the government he has concluded that the pollution level in
the country is rising very fast and that the vehicles running on petrol and diesel
contribute a lot into it. Keeping this fact in mind, Mr. Rai developed such an engine
which can run on air pressure. The company used this engine, first of all, in cars, which
proved to be completely successful. The cars were expensive, but the company got full
support from the market. From the government also, several concessions in the taxes,
power rate, etc. were available. The company earned a huge profit.
Afterwards, several other companies also followed this technique, but no other
company got as much fame as was got by ‘Sarika Motors’.
Identify the point of ‘importance of business environment’ in the event described
above.
(a) It helps the firm in identifying the threats and early warning signals.
(b) It enables the firm in identifying opportunities and getting the first mover advantage.
(c) It helps in tapping useful resources.
(d) It helps in coping with rapid changes.
56. Nishu wants to start a washing machine manufacturing company. She has decided to
make a budget for the amount of production she will do, the efforts behind promotion
she will put and all other major actions she will undertake to achieve its objectives.
Identify the function of marketing management.
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(a) Gathering and analysing market information

(b) Marketing planning
(c) Transportation
(d) Warehousing
57. Which statement is correct with respect to the societal concept of marketing
philosophy?
(a) Quantity of product (b) Quality, performance, features of product
(c) Customer needs (d) Customer needs and society’s well being
58. Sanjivan Madan is working as the sales manager in the ‘Sharda Shopping Mall’. He is
preparing a sales plan for his department. He is taking the help of forecast as the base
of the form of his sales plan. He is of the view that a good plan can be prepared by
learning about the possibilities of future events and conditions through the medium of
forecast. The plan being prepared by Sanjivan is very important as the production plan
and other plans of business are prepared on this very basis.
Identify the feature of planning in above event.
(a) Planning is continuous
(b) Planning is futuristic.
(c) Planning involves decision-making
(d) Planning is pervasive.
59. Ram, a manager, very often speaks with people at all levels, passing on instructions
regarding his department and also the other departments. Which principle of
management is being overlooked?
(a) Scalar chain (b) Order
(c) Equity (d) Unit of command
60. Ankit, a manager, expects his subordinates to work for the happiness and pleasure of
being in the organisation.
Which principle of management is being overlooked?
(a) Subordination of individual to general interest
(b) Remuneration to employees
(c) Espirit de corps
(d) Centralisation and decentralisation
SAMPLE PAPER 1
OMR SHEET SP 1
Roll No.
Student Name Sub Code.
Instructions
Use black or blue ball point pens and avoid gel & fountain pens for filling the sheets
Darken the bubbles completely. Don’t put a tick mark or a cross mark half-filled or over-filled bubbles will not be read
by the software.
Correct Incorrect Incorrect Incorrect

Do not write anything on the OMR Sheet.
Multiple markings are invalid.
1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d
Check Your Performance

Total Questions: Total Correct Questions
Score Percentage = × 100
Total Correct Questions: Total Questions
Less than 60% > Average (Revise the concepts again)

If Your Score is Greater than 60% but less than 75% > Good (Do more practice)
Above 75% > Excellent (Keep it on)
Answers
1. (c) 2. (c) 3. (a) 4. (b) 5. (c) 6. (a) 7. (b) 8. (a) 9. (d) 10. (d)
11. (a) 12. (d) 13. (b) 14. (d) 15. (a) 16. (c) 17. (d) 18. (b) 19. (b) 20. (a)
21. (b) 22. (b) 23. (d) 24. (a) 25. (a) 26. (d) 27. (c) 28. (a) 29. (a) 30. (d)
31. (c) 32. (c) 33. (c) 34. (b) 35. (a) 36. (b) 37. (b) 38. (b) 39. (b) 40. (b)
41. (d) 42. (d) 43. (d) 44. (c) 45. (a) 46. (c) 47. (b) 48. (d) 49. (b) 50. (a)
51. (c) 52. (b) 53. (c) 54. (d) 55. (b) 56. (b) 57. (d) 58. (b) 59. (a) 60. (b)
EXPLANATIONS
(Only for selected questions)
1. Management cannot be seen but its presence 37. If by using less resources more benefits are
can be felt in the way the organisation derived, then efficiency has increased.
functions. 38. Electronic companies are neglecting societal
7. The hierarchy of different management concept as there is no way to dispose-off
position from top to bottom is called as levels electrical waste which doesn’t harm the planet.
of management. 39. “but still she tries to offer the goods at a
8. It is a non-personal communication, where minimum price so that she can sell her goods
there is no personal contact between buyer and is able to survive in the market.” These
and seller. lines show that it is an organisational objective.
11. Delegation means distributing the authority to “She also make sure that people with a lesser
the subordinates to reduce the work load of income can also buy her goods.” These lines
managers. show that it is a social objective.
40. Ajay produces the goods at high cost, that’s
17. Selling concept focuses on increasing the sales
why he is inefficient and Vijay takes more
to earn maximum profit while packaging and
time to produce targeted goods, that’s why he
labelling are two different elements of product
is ineffective.
mix.
41. Planning has a limitation that it does not give
18. Employees are the component of business guarantee for success. Planning is a function
environment. of top level managers.
20. When the organisation deals in more than one 43. The consumer would favour those products
line of product, then it gets product which are widely available at an affordable
specialisation under divisional structure. price, so under production concept the greater
21. When the product is in high demand, firms can emphasis was placed on availability and
charge high price to earn maximum profits. affordability.
25. Business environment is not static, so it is 44. Cooperation is a voluntary effort that arises
essential to monitor and scan the environment out of informal relations with the desire to
continuously. work together while coordination is essential
for achievement of common goals of an
26. Pervasive means applicable to every type of organisation.
organisation and at every level in the
46. In this principle, every employee should have
organisation.
the same objective as of organisation.
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27. Grading means identification of product on 55. Company earned huge profits due to
the basis of quality, size, colour, design etc. identification of opportunities and convert it
29. Coordination is synchronisation of group efforts into successful business.
towards achievement of organisational goals. 58. Planning is looking ahead and preparing for
30. Company is trying to attract the customers the future.
through advertisement, personal selling and 59. Scalar chain means line of authority from
sales promotion techniques and these all are highest to lowest rank.
the elements of promotion mix.
60. According to the principle of remuneration,
34. Departmentalisation means grouping the employees must be paid fairly and adequately
similar nature of work in a department. as per their working.
SAMPLE PAPER 2
BUSINESS STUDIES
Instructions
Maximum Marks : 40
Section A
1. Successful organisations do not achieve their goals by chance but by following a
……… called ‘management’.
(a) process (b) function (c) method (d) system
2. Planning helps in maintaining ……… between different divisions, departments and

individuals.
(a) coordination (b) cooperation (c) flexibility (d) silence
3. Which of the following is the component of product mix?

(a) Product cost (b) Labelling
(c) Competition (d) Demand
4. Planning, organising, staffing, directing and controlling are performed by all the
managers all the time. Sometimes they are doing planning, then staffing or organising
etc. Which characteristics of management does it signifies?
(a) Management of work (b) Management is pervasive
(c) Management is a continuous process (d) Goal oriented
5. Gang plank permits direct communication between ……… .

(a) employees working at same level but in different departments
(b) any employee irrespective of its level
(c) employees of same department only
6. ‘‘Buy goods worth ` 2,000 and get a holiday package worth ` 1,000 free.’’ Which sales
promotion activity is mentioned in the given statement?
(a) Product combination (b) Usable benefit
(c) Quantity gift (d) Rebate
7. Successful management ensures that

(a) goals are achieved with least cost. (b) timely achievement of goals.

Statement I Societal concept emphasis on customer satisfaction with social welfare.
Statement II Product concept emphasis on aggressive selling.
Alternatives
9. Effective ……… allows the managers to reduce their workload by assigning routine
jobs to their subordinates.
(a) decentralisation (b) delegation
(c) centralisation (d) management
10. Employees become blind followers of plan as stated by superiors, so planning ……… .
(a) leads to improved decision-making (b) leads to reduced creativity
(c) leads to rigidity (d) leads to guarantee to success
11. Which of the following is not an element of delegation?

(a) Accountability (b) Responsibility
(c) Authority (d) Entrustment of task
12. All the managerial functions are performed within the framework of the plans drawn.
Identify the related feature of planning.
(a) Planning is futuristic (b) Planning is primary function of a manager
(c) Planning is mental exercise (d) Planning is pervasive
13. While the product ……… sets the lower limit of the price, the utility provided by the
product sets the upper limit of price, which a buyer would be prepared to pay.
(a) profit margin (b) cost
14. Swachh Bharat Abhiyan started by BJP government is a part of ……… environment.
(a) legal (b) social
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(c) political (d) economic
15. In order to inform and persuade the prospective consumers about its range of
products, a start up business decided to use non-personal form of communication.
Identify the element of promotion mix which has been described in the given case.
(a) Personal selling (b) Public relation
(c) Advertising (d) Sales promotion
16. ……… fills the gap between where we are and where we want to be. Identify the
function.
(a) Controlling (b) Organising
(c) Planning (d) Directing
17. Till six months back, Roar Limited was the only company selling solar heating bags, but
now with the entry of three other companies offering the same product, the market
scenario has changed. Consequently, Roar Limited has decided to reduce the prices of a
product by 5%. Identify the related factor affecting the pricing decision of the company.
(a) The utility and demand
(b) Product cost
(c) Extent of competition in the market
18. ……… refers to negative and unfavourable external factors that are likely to create
hurdles for a firm.
(a) Opportunities (b) Warning
(c) Threats (d) None of these
19. The principle of ……… will minimise the need for using penalties.
(a) espirit de corps (b) equity
(c) initiative (d) discipline
20. Under ……… function of management, the relationship between different posts
(positions) is explained.
(a) planning (b) directing
(c) organising (d) controlling
21. The packaging of the room freshners is done in accordance with it’s specific fragnance
like purple colour is used for lavender, yellow for lime, pink for rose and so on.
Identify the related point of importance of packaging.
(a) Product identification (b) Product protection
(c) Facilitating use of the product (d) All of these
22. The growing awareness about healthcare has led to an increase in the demand for
healthcare products and services in the country. Identify the feature of business
environment being described in the above case.
(a) Dynamic nature (b) Uncertainty
(c) Relativity (d) Interrelatedness
23. In which situation, the functional structure happens to be appropriate?

(a) Where the number of major products is more than one
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(b) Where the size of the organisation is quite large

(c) Both (a) and (b)
(d) Where primarily only one product is sold
24. “A manager should have the right to punish a subordinate for wilfully not obeying a
legitimate order but only after sufficient opportunity has been given to a subordinate
for presenting his case.” Which managerial principle has been highlighted in aforesaid
situation?
(a) Authority and responsibility (b) Unity of direction
(c) Initiative (d) Discipline
Section B
25. As a result of major government initiatives, more and more people are going ‘green’. In
order to keep in line with the trend, ‘Clap away’ a carpet cleaning company has
advertised that they only use natural cleaners that come from renewable resources and
that all their service vehicles are hybrid vehicles that use both gas and electricity.
Identify one of the points related to the importance of business environment and its
understanding by managers which is being highlighted in the above case.
(a) It helps in assisting in planning and policy formulation
(b) It helps in coping with rapid changes
(c) It helps in improving performance
(d) It enables the firm to identify opportunities and getting the first mover advantage
26. Aman is a very hard working manager. After working for the implementation of his
well chalked out plan, he from the start of June, decides to see in what ways and up to
what accuracy has his plan been implemented?
Which step of the planning process will be followed by Aman from the starting of June?
(a) Setting objectives (b) Follow up
(c) Implementation (d) Developing premises
27. Super Star Ltd entered into the market with coloured televisions and have now
introduced products like audio systems, air-conditioners, washing machines etc. The
company is not only offering the products but also handling complaints and offering
after sales services. Identify the element of marketing mix discussed here.
(a) Product (b) Place
(c) Price (d) Promotion
28. Assertion (A) Demand for sarees may be fairly high in India whereas it may be almost
non-existent in France.
Reason (R) Business environment consists of numerous inter-related and dynamic
conditions or forces which arise from different sources.
Alternatives
of Assertion (A)
29. Chief Marketing Officer and Managing Director forms the part of ……… level
management.
(a) middle (b) operational
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(c) top (d) None of these
30. ……… refers to short-term incentives which are designed to encourage the buyers to
make immediate purchase of a product.
(a) Advertising (b) Sales promotion (c) Personal selling (d) Public relation
31. Taste India is a cafe which is opened just 1 year ago. From 1 year, it is not having
enough good sales. There is not much crowd of customers. It is becoming difficult to
cover up the costs and salaries and other expenses to run the cafe. Mr. Aniket, the
owner of cafe is worried about the condition and didn't want to close his cafe as it his
dream project. He discussed this problem with his close friend who suggested him to
appoint Ms. Suman as his manager. Ms. Suman after appointment, as manager and
analysed all the situation and then asked Mr. Aniket to make some changes in the
menu, cafe interior and introduce some new dishes in market which would suit
customer's taste according to present trend.
Which characteristic of management Ms. Suman has followed?
(a) Management is pervasive (b) Management of work
(c) Management of operations (d) Management is dynamic function
32. Manmeet has joined as a Production head in an automobile company. He always
divides the work into small and manageable activities and also groups the activities of
similar nature together. Identify the related step in organising process being mentioned
in the above lines.
(c) Assignment of duties (d) Establishing reporting relationships
33. The application of the principles of management has to be changed as per the
requirements of the prevailing situation at a particular point of time. Which feature of
the principles of management is being described in the given statement?
(a) Contingent (b) Mainly behavioural
(c) Cause and effect relationship (d) General guidelines
34. ……… is known as the extended form of delegation.
(c) Accountability (d) Decentralisation
35. Raj Malhotra was working as a general manager in a automobile company and was in
charge of running the day-to-day business activities of the company. At which level of
management was he working?
(a) Middle level (b) Top level
(c) Supervisory level (d) None of these
36. Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy
is to sell only for cash. In 2015, for the first time company’s number one position in the
industry has been threatened because other companies started selling rice on credit
also. But the managers of Super Fine Rice Ltd continued to rely on it’s previously tried
and tested successful plans which didn’t work because the environment is not static.
This led to decline in sales of Super Fine Rice Ltd.
The above situation is indicating two ‘limitations of planning’ which led to decline in it
sales. Identify one of them.
(a) Planning creates rigidity (b) Planning reduces creativity
(c) Planning involves huge costs (d) Planning does not guarantee success
37. Assertion (A) In an organisation, coordination is required so that production and sales
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department can work hand in hand.

Reason (R) Coordination integrates group efforts.
Alternatives
of Assertion (A)
38. Neha runs a Fashion Boutique in posh locality in Delhi. At the time of fixing of the
price for each costume, she takes into consideration the money spent on the fabric,
stitching and other accessories used in the costume. Identify the factor affecting pricing
decision being described in the above case.
(a) The utility and demand (b) Product cost
(c) Extent of competition in the market (d) Pricing objectives
39. Rohan works as a production manager in Global Enterprises Limited. He has been
given the task of getting 1,000 units of hand woven table mats manufactured at the cost
of ` 150 per unit within 10 days. In order to be acknowledged as an effective manager,
he must ensure that
(a) the cost of production does not exceed `150 per unit.
(b) the work is completed within 10 days even at higher cost per unit.
(c) the cost of production is less than `150 per unit.
40. An organisation PQR Ltd, helps in providing jobs to unemployed people and utilise
resources to maximum possible advantage. Which objective of management is used
here?
(a) Organisational objective (b) Personal objective
(c) Social objective (d) Social and organisational objective
Statement I Planning is pre-requisite for controlling.
Statement II Planning does not look into the future.
Alternatives
42. ……… is the technique in which each worker is supervised by eight supervisors.
(a) Functional foremanship (b) Unity of action
(c) Centralisation (d) Simplification of work
43. Assertion (A) Sales promotion is a very costly mode of communication.

Reason (R) Because of its wide reach, the overall cost gets spread over numerous
communication links established, hence per unit cost of reach comes low.
Alternatives
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of Assertion (A)
44. Ramarjuna joins an IT firm as a system analyst after completing his masters in
Computer Science. As the nature of his work demands, he has to work in very close
coordination with all the departmental heads in the firm, very soon Ramarjuna realised
that each departmental head has own individual style of working. They differ greatly
in their day-to-day approach to work. They tend to deal with a given situation, an issue
or a problem through a combination of their own experience, creativity, imagination,

initiative and innovation.
In the context of the above case, identify the nature of management highlighted in the
above case.
(a) Management as art (b) Management as science
(c) Management as profession (d) None of these
45. A manager is required to make certain ……… about the future which may be in the
form of forecast.
(a) plans (b) assumptions (c) standards (d) rules
Statement I Management principles are derived after observation and experimentation
when certain conditions are present.
Statement II Principles of management are behavioural in nature and these can be applied
to human beings only.
Alternatives
47. Varun expressed his desire to buy an expensive mobile phone on his birthday as he
wanted to show off to his friends. Identify the type of product utility being described
in the given case.
(a) Functional utility (b) Psychological utility
(c) Social utility (d) All of these
48. ‘Artistic Art Gallery’ is a big company which produces the paintings showing modern
art and such like other material. Once, the sales department of the company received
big orders for preparing some special kind of material. But this information was not
delivered in time to the production department. The production department continued
its production on the basis of its experience in the years gone by. Thus, the necessary
activities of the company could not be taken up and there was a big heap of
unnecessary production. As a result, the company had to suffer a big loss.
Which particular point of the importance of planning did the company fail to avail of?
Identify on the basis of the event described above.
(a) Planning provides direction
(b) Planning reduces the risk of uncertainty
(c) Planning reduces overlapping and wasteful activities
(d) Planning promotes innovative ideas
SAMPLE PAPER 2
Section C
Mr. Samarth is working on the post of General Manager of ‘Samarth Medicare Private Limited’.
He has completed the first function of management, i.e., planning of his company.
Now he is preparing for the other function of management, i.e., organising. Mr Samarth built a
team of specialists for this work. The team, first of all, prepared a detailed list of the different
activities to be done in the company for the completion of plans. While preparing this list, the
care was taken that neither any activity should be left undone nor should there be the repetition
of any activity.
The members of the team thoroughly studied the activities included in the list prepared. After
studying the activities, the activities of similar nature were put together, so that they should be
completed under the supervision of the same manager. For example, advertisements and sale
were the activities of similar nature. The responsibility of completing these activities was handed
over to the Marketing Manager.
After this, the activities to be done on different posts were defined by the team. In other words, it
was clarified which activities would be performed by a particular department and who would
complete them.
At the time of work distribution, a special care was taken to assign the right work/job to the right
person. Besides, the team of specialists also settled who would get orders from whom and to
whom he would be answerable.
49. Which function of management is highlighted in the above case?
50. ‘‘A detailed list of the different activities to be done in the company was prepared by
the team of specialists’’. Which particular stage of the organising process is indicated
by this?
(a) First (b) Second
(c) Third (d) Fourth
51. ‘‘Receiving orders and being answerable was clarified by the team of specialists’’. What
does this action of the team suggest regarding the organising process?
(c) Assignment of duties (d) Establishing reporting relations
52. ‘‘At the time of distribution of work, it was made certain that the right person should
be given the right work’’. To which stage of ‘organising process’ is this statement
related?
53. ‘‘All the activities of similar nature were put together by the team, so that they should
be completed under the supervision of the same person.’’ Which of the stages of
‘organising process’ is indicated by this action of the team?
54. Which importance of organising highlighted in the given lines, “it was clarified which
activities would be performed by a particular department and who would complete
them”?
SAMPLE PAPER 2
(a) Benefit of specialisation (b) Clarity in working relationship

(c) Effective administration (d) Optimum utilisation of resources
55. India’s population is expected to grow under 0.5 per cent during 2031-41 due to decline
in fertility rate and increase in life expectancy. These changes in India’s demography
will also have implications such as the proportion of elementary school-going children
will witness significant declines, lack of hospital beds and increase in retirement age.
The related feature of business environment being described in the above lines is
(a) totality of external forces (b) dynamic nature
(c) interrelatedness (d) relativity
56. Aarohi found a worm crawling out of a newly opened tetra pack of milk manufactured
by a reputed company, Milk Ltd. She went back to the shopkeeper from whom the
pack was purchased who directed her to call up the customer care centre. When all her
efforts fell free, she went to a consumer activist group to seek advice. The group
decided to help Aarohi and take measures to impose restrictions on the sales of the
firm's products of the particular batch and urge customers to refrain from buying the
products of the company. Milk Ltd. lost its image in the market. The CEO gave the
responsibility of bringing back the lost image of the company to the manager. Identify
the concept of marketing management which will help the manager to get the firm to
get out of the crisis.
(a) Public relations (b) Sales promotion
(c) Advertising (d) None of these
57. Agile Limited has launched a new range of air conditioners in order to add value to the
usability of the product. The new range of air conditioners have an inbuilt air purifier
and are available in attractive colours. Identify the type of marketing philosophy being
described in the above lines.
(a) Product concept (b) Production concept
(c) Marketing concept (d) Societal marketing concept
58. Sita Ram is working as the manager of ‘Ram Foods Ltd’. The general goal of
establishing his company was to become the leader of ‘Food Industry’. Sita Ram
determined the activities and plans for the realisation of the general goal. In the plans
themselves, he determined the specific goals also. He knew it very well that the
planning done by him was of no significance if he failed to contribute to the realisation
of pre-determined organisational objectives. This was the reason that he did everything
with full alertness. Identify the feature of planning described in the above discussion.
(b) Planning is a primary function of management
(c) Planning is pervasive
(d) Planning is continuous
59. According to Taylor, “even a small production activity like loading figures of iron into
boxes can be scientifically planned and managed. This can result in tremendous
savings of human energy as well as wastage of time and materials.” Identify the related
principle of scientific management.
(c) Development of each and every person to get his/her greatest efficiency and prosperity
60. A scientist working in a factory for the betterment of the operational aspect studied all
SAMPLE PAPER 2
the steps involved in the manufacturing of the product. He very attentively noticed all
sorts of movements to arrive at a simpler way of doing all the activities possible. With
his hard work he was able to bring down the number of activities for the
manufacturing of the final product from 34 to 22. This work was able to bring down
the labour charges and decrease the total time of production. Thus he gave the
organisation an added advantage.
Which type of scientific technique is discussed here?
(a) Motion study (b) Functional foremanship
(c) Method study (d) Fatigue study
OMR SHEET SP 2
Roll No.
Instructions
by the software.

1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d


Answers
1. (a) 2. (a) 3. (b) 4. (c) 5. (a) 6. (b) 7. (c) 8. (a) 9. (b) 10. (b)
11. (d) 12. (b) 13. (b) 14. (c) 15. (c) 16. (c) 17. (c) 18. (c) 19. (d) 20. (c)
21. (a) 22. (d) 23. (d) 24. (a) 25. (c) 26. (b) 27. (a) 28. (d) 29. (c) 30. (b)
31. (d) 32. (b) 33. (a) 34. (d) 35. (b) 36. (d) 37. (a) 38. (b) 39. (b) 40. (d)
41. (a) 42. (a) 43. (a) 44. (a) 45. (b) 46. (c) 47. (c) 48. (c) 49. (b) 50. (a)
51. (d) 52. (c) 53. (b) 54. (b) 55. (c) 56. (a) 57. (a) 58. (a) 59. (b) 60. (c)
EXPLANATIONS
3. Product mix has three elements–packaging, 28. Business environment is a relative concept as
labelling and grading. it differs from country to country.
4. Management is a never ending process. 31. “She asked Mr. Aniket to make some changes
It starts from planning and ends with in the menu, cafe interior and introduce some
controlling. new dishes in market which would suit
customer's taste according to present trend”.
7. Successful management ensures that goals are
These lines show that management is a
achieved effectively and efficiently i.e. on time
dynamic function.
with minimum cost.
32. Departmentalisation means grouping the
8. Product concept emphasis on quality of the
similar nature of work into one department.
product.
35. General manager comes under top level
9. Delegation means distributing the work to management.
their immediate subordinate, so that superior
can focus on core activities. 36. Planning in case of changing environment
does not guarantee success.
11. There are three elements of delegation –
38. While deciding the price of a product, it’s
authority, responsibility and accountability.
manufacturing cost is taken into consideration.
12. All the other functions of management are
39. Effectiveness means work should be
performed as per plans are drawn. So other
completed on time at any cost.
functions follow planning.
41. Planning is done for future only. It is a
19. If every activity of employee and manager is futuristic concept.
in discipline, then they can save unnecessary
penalties. 44. The use of management theories by various
managers is highly dynamic and can’t be used
20. In organising function, reporting relationship in isolated manner.
is established after assignment of duties.
48. In this case departments are not working in a
22. Factors of business environment are coordinated way, which will increase
inter-related as the growing awareness about overlapping and wasteful activities.
healthcare increases the demand of health
55. Factors of business environment are
products.
inter-related.
2
SAMPLE PAPER 3
23. Functional structure happens to be 57. Product concept focuses on quality of the
appropriate in single line of product. product.
24. According to the principle of authority and 58. “Sita Ram determined the activities and plans
responsibility, there should be a proper for the realisation of the general goal.” These
balance between authority and responsibility. lines indicate that planning focuses on
25. The enterprises which continuously monitors achieving objectives.
and adjust themselves as per changing 59. According to this principle, every work
environment perform better. should be done on the basis of scientific
26. Follow up means taking feedback of your plan enquiry and not on the basis of intuition or hit
implementation. and trial method.
SAMPLE PAPER 3
BUSINESS STUDIES
Instructions
Maximum Marks : 40
Section A
1. Pramod Ltd targets production of 22,000 units in a year. The production manager was
able to cut down the cost but could not achieve the target. In this case, manager is
............. but not .............. .
(a) efficient but not honest
(b) effective but not efficient
(c) efficient but not effective
2. ............. is the essence of planning.

(a) Organising (b) Controlling
(c) Forecasting (d) Directing
SAMPLE PAPER 3
3. ‘Find wants and fill them’ is ............. concept of marketing management.

(a) marketing (b) societal
(c) product (d) production
4. Management translates the work to be carried out in terms of goals to be achieved

and assigns the means to achieve it. This statement relates to
(a) management of work (b) management of people
(c) management of operations (d) All of these
5. Mr. Kumar working in ABC Ltd. feels that he is being unfairly treated in his workplace.
He complains that he is given too many tasks to be completed at once. He feels
overburdened with so much work. What principle or technique is not being followed
in the organisation?
(a) Cooperation, not individualism (b) Unity of direction
6. …………… level of packaging is concerned with packing products to protect them and
helps in the process of storage and identification.
(a) Primary (b) Secondary
(c) Transportation (d) None of these
7. Identify the nature of management highlighted in the following statement

“Certain management associations like AIMA, have formulated ethical codes for managers,
but there is no legal support for it.’’
(a) Management as an art (b) Management as a science
(c) Management as a profession (d) None of these

Statement I Labelling is also an important feature of the product.
Statement II It not only protects the product but also serves as a promotional tool.
Alternatives
9. As the span of management increases in an organisation, the number of levels of

management in the organisation ……… .
(a) increases (b) decreases
(c) remains unaffected (d) None of these
10. Which of the following is not the internal element of limitation of planning?
(a) Capital (b) Raw material
(c) Increase in population (d) Machine
11. Identify the type of organisational structure which makes training of employees easier,
as the focus is only on a limited range of skills.
(a) Network structure (b) Divisional structure
(c) Functional structure (d) Matrix structure
12. What resources are specially kept in view while planning?

(a) Limited (b) Unlimited
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(c) Both (a) and (b) (d) None of the above
13. The term ‘market’ may be understood in which of the following contexts?
(a) Geographical area covered (b) Type of buyers
(c) Quantity of goods transacted (d) All of these
14. Many businesses are using social media like Facebook, Instagram and twitter to
promote themselves. This is an example of which dimension of environment?
(a) Social (b) Economic
(c) Legal (d) Technological
15. Which of the following statements does not reflect a condition to be satisfied for an
exchange to take place?
(a) Involvement of at least two parties, i.e. the buyer and the seller, is mandatory.
(b) Each party should be capable of offering something of value to the other.
(c) Exchange can take place if the buyers and sellers are not able to communicate with each
other.
(d) Each party should have freedom to accept or reject other party’s offer.
16. Planning of different departments in an organisation is ……… .

(a) independent (b) individual
(c) mutually dependent (d) None of these
17. Raman has the purchasing power to buy a new model of small car but not the
willingness to purchase it whereas his friend Tarun has the willingness to purchase it
but does not have purchasing power to buy it. Who will consitute the part of market
for the product?
(a) Raman (b) Tarun
(c) Both Raman and Tarun (d) None of these
18. Recently the unpredictable covid situation has caused the unexpected changes in many
businesses all over the world causing loss in some and profit in other with new current
situation opportunities. What is the nature of business environment highlighted in the
given statement?
(a) Uncertainty (b) Dynamic
(c) Complex (d) Relativity
19. ………… is considered as the father of scientific management.

(a) Henri Fayol (b) FW Taylor
(c) Elton Mayo (d) Maslow
20. Once departments have been formed, each of them is placed under the charge of
…………… .
(a) general manager (b) departmental head
(c) CEO (d) managing director
21. In order to promote the sale of sports shoes, Mansa Limited is offering an opportunity
to have dinner with Anushka Sharma and Virat Kohli to two of its customers whose
names will be decided randomly through a draw. Besides the product itself, what is
being marketed by the company through this offer?
(a) Place (b) Experiences
(c) Event (d) Idea
22. Proper understanding of business environment is not a prerequisite for ……… .

SAMPLE PAPER 3
(a) tapping of useful resources (b) identification of opportunities and threats

(c) better coordination of employee efforts (d) None of these
23. For delegation to be effective, it is essential that responsibility is accompanied with

necessary ……… .
(a) authority (b) manpower (c) incentives (d) promotions
24. ……… is not a part of work study.

(a) Motion study (b) Time study
(c) Mental revolution (d) Method study
Section B
25. ‘Twinkle Stars’ is a well-known resort for organising parties, especially for children.
However, in past 6 months its popularity has reduced considerably as a new resort
with better ambience and facilities has opened within its vicinity. Name the related
feature of business environment which has influenced the business of ‘Twinkle Stars’
adversely.
(a) Totality of external forces (b) Dynamic nature
(c) Interrelatedness (d) Uncertainty
26. Planning may not work in a ………………… environment.

(a) dynamic (b) stable
27. ‘Garima Ltd.’, a manufacturer of car engines achieves a breakthrough by developing a

car engine which runs on water. This development is effectively communicated by the
company to its dealers and prospective customers. Because of this breakthrough, the
image of the company has gone up. The company has also set-up a department that
advises its top management to adopt such programmes which will add to its public
image. Name the term that is used for this activity.
(a) Sales promotion (b) Public relations
(c) Advertising (d) Personal selling
28. Assertion (A) Agricultural and industrial production trends affect the business
environment.
Reason (R) Technological environment like agriculture and industrial production trends has
modified the ways to produce and distribute the goods through improved methods and
techniques.
Alternatives
of Assertion (A)
29. In order to successfully realise the objectives of an organisation, first of all it is ensured
which activities will have to be performed. In the list of activities, all the activities, both
big and small, are included. But it is not possible to set up separate departments for all
the activities, thus similar activities are put together in the same department. In this
way, some necessary departments are set up. The reason for doing so is to exercise
control over unnecessary administrative expenses. Identify the concept of management
SAMPLE PAPER 3
under which similar activities are put together and departments are set up.
(a) Departmentalisation
(b) Delegation
(c) Decentralisation
(d) Centralisation
30. A brand or part of a brand that is given legal protection is called ……………….
(a) Brand name (b) Brand mark
(c) Trademark (d) None of these
31. Sky Limited has a staff of two hundred people which is grouped into different
departments. The organisational structure depicts that 100 people work in production
department, 50 in finance department, 20 in technology department and 30 in human
resource department. Identify the type of organisational structure being followed by
the company.
(a) Functional structure (b) Divisional structure
(c) Informal structure (d) None of these
32. Assertion (A) The superior-subordinate relation is clearly defined in organising.

Reason (R) Each manager knows clearly to whom he can give orders and from whom he has
to receive orders.
Alternatives
of Assertion (A)
33. Shyam and Suraj are newly appointed in ABC ltd. Both have been assigned to work
under the production department. Shyam is responsible for arranging all tasks and
machines for the job and Suraj has to ensure that machine is in proper working
condition for completing the job. Specify the position to which they are assigned.
(a) Shyam-Inspector; Suraj- Inspector
(b) Shyam- Inspector; Suraj- Gang Boss
(c) Shyam- Gang Boss; Suraj- Repair Boss
(d) Shyam-Repair Boss; Suraj- Inspector
34. Which statement is not correct with respect to ‘organisation structure’?

(a) It ensures coordination among human and physical resources
(b) It ensures smooth flow of communication
(c) It specifies relationship between people, work and resources
(d) It establishes standards for controlling
35. Name the process which co-ordinates human efforts, assembles resources and
integrates both into a unified form to be utilised for achieving specified objectives.
(a) Management (b) Planning (c) Organising (d) Directing
Statement I Continuity of planning is related with the planning cycle.
Statement II A plan is framed, implemented and is followed by another plan and so on.
Alternatives
SAMPLE PAPER 3

37. Uranus Limited is a company dealing in metal products. The work is mainly divided
into functions including production, purchase, marketing, accounts and personnel.
Identify the type of organisational structure followed by the organisation.
(a) Functional structure (b) Relational structure
(c) Divisional structure (d) None of these
38. Assertion (A) Marketing includes many activities that are performed even before
goods are actually produced, and continue even after the goods have been sold.
Reason (R) Marketing is merely a post-production activity.
Alternatives
of Assertion (A)
39. Harshit Ltd. has grown in size. It was a market leader but with changes in business
environment and with the entry of MNCs, its market share is declining. To cope up
with the situation, CEO starts delegating some of his authority to the General Manager,
who also felt himself overburdened and with the approval of CEO, disperses some of
his authority to various levels throughout the organisation. Identify the concept of
management discussed above.
(a) Delegation (b) Organising
(c) Decentralisation (d) Centralisation
40. Neha runs a factory wherein she manufactures shoes. The business has been doing
well and she intends to expand by diversifying into leather bags as well as western
formal wear thereby making her company a complete provider of corporate wear. This
will enable her to market her business unit as the one stop for working women. Which
type of structure would you recommend for her expanded organisation?
41. Wove is a washing machine manufacturing company. The company decides to enter
into music system manufacturing industry. The company has a committed top
management. It knows that there are various challenges in the market where its
decisions regarding the new industry might fail. Still the top management doesn't want
to waste a lot of resources on its plans. It knows that sometimes plans take more time
in making than getting implemented.
However, the company wants to proceed with a positive approach. It has decided to
study all the aspects of its competitors, to set all its objectives and to allocate the
required resources.
The company did well in its previous business. At that time, they took planning very
seriously as they knew, everything the company would do had to be based on concrete
plans. The company will start its operations from next month.
Which function of management has been discussed in the above case?
SAMPLE PAPER 3
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling
42. ………… principle of management states that there should be a place for everything
and everything should be in its place.
(a) Equity (b) Discipline
(c) Order (d) Esprit de corps
43. A company was marketing ‘water purifiers’ which were very popular due to their
quality and after sales services provided to the customers. The company was a leading
company in the market and earning huge profits. Because of huge profits, the company
ignored the after sales services. As a result, its relations with the customers got spoiled
and the image of the company was damaged in the public. Top management became
concerned when the profits for the current quarter fell steeply. On analysis, it was
revealed that ignoring the after sales services was its reason. Therefore, the company
took all possible measures to protect and promote its favourable image in the eyes of
the public. As a result, the goodwill of the company improved in the society.
Name the communication tool used by the marketer in the above case to improve its image.
(a) Advertisement (b) Sales promotion
(c) Public relations (d) Publicity
44. Chairman is the position at ……… level of management in a large company.

(a) top (b) middle
(c) lower (d) middle and lower
45. Karim is at the real point of decision-making in the course of his planning. He has
arrived at this point after identifying various alternative courses of action. After
identification, he was thoroughly involved in the evaluation of each of these
alternatives. He later got involved into making several permutations and combinations
of these alternatives to arrive at this point. Which stage of the planning process is
Karim at?
(a) Identification of different alternatives (b) Evaluating different alternatives
(c) Selecting the best alternative (d) Follow up
Statement I Method study means finding the one best way of doing a task.
Statement II Fatigue study means eliminating the unnecessary movements.
Alternatives
47. Zoom Udyog, a car manufacturing Co., has started its business with Zoom 800 and
slowly launched Zoom-1000, Wagon-Z, Swy-fy, etc. and offered various services like
after sale service, availability of spare parts, etc.
Identify the element of marketing mix referred here.
(a) Product (b) Price (c) Promotion (d) Place
48. Two friends, Naman and Krishan are working as managers in different
SAMPLE PAPER 3
companies. One Sunday, both of them together set off on travelling. Both of them began
talking about the activities going on in their respective companies. Mr Naman said that
during these days, he was busy with the job of planning function of management. He also
told that he was planning in such a way that the other managerial functions should be
completed under the framework of plans prepared by him.
Identify the feature of planning described by Naman in the above discussion.
(b) Planning is a primary function of management
(c) Planning is pervasive (d) Planning is continuous
Section C
Grey works in a private sector retail bank. He sets objectives and goods for the whole bank. He is
also responsible for formulating strategies of the bank. He realised that different individuals had
their own style of working and differs in their day-to-day approach towards work. They apply
their own creativity.
However, he felt that there is no harmony in the work done by each leading to over lapping or
duplication of work and wastage of lot of time. He integrated the efforts of these individuals into
a unified plan of action to achieve better organisational results.
Grey is a leader who consults the workers before taking important decisions. The workers are
also satisfied because of this behaviour as they are taken into confidence before important
decisions.
49. According to the above said case, at which level of management, Grey works?
(a) Top (b) Middle
(c) Lower (d) Shop floor
50. “He realised that different individuals had their own style of working and differs in
their day-to-day approach towards work. They apply their own creativity”. In these
lines, ……… is highlighted as the nature of management.
(a) Art (b) Science
(c) Profession (d) None of these
51. Which concept is highlighted in the lines, “However, he felt that there is no harmony in
the work done by each leading to overlapping or duplication of work and wastage of
lot of time. He integrated the efforts of these individuals into a unified plan of action to
achieve better organisational results.”?
(a) Cooperation (b) Coordination
(c) Authority and responsibility (d) Planning
52. “Grey is a leader who consults the workers before taking important decisions”. Which
objective of management is highlighted in given lines?
(a) Social (b) Personal
(c) Organisational (d) None of these
53. “He realised that different individuals had their own style of working and differs in
their day-to-day approach towards work. They apply their own creativity.” Which
feature of management highlighted in the given lines?
(a) Pervasive
(b) Continuous process
(c) Multi-dimensional
(d) Intangible
SAMPLE PAPER 3
54. “Grey is a leader who consults the workers before taking important decisions”. Which
importance of management highlighted in given lines?
(a) Management improves efficiency
(b) Management helps in achieving personal objectives
(c) Management helps in the development of society
(d) Management creates a dynamic organisation
55. According to a report by the India Staffing Federation (ISF), India has emerged as the
Fifth largest market worldwide in flexi-staffing in 2018 and the country would have 6.1
million flexi workforce by 2021. It showed that Haryana, Gujarat, Karnataka, Madhya
Pradesh and Telangana are the states with high growth potential for flexi-staffing but
Andhra Pradesh tops the list of states with favourable business environment. Identify
the feature of business environment being discussed above.
(a) Relativity (b) Dynamic nature
(c) Uncertainty (d) Interrelatedness
56. Vasvi purchased a bottle of pickle from the local grocery shop. The information
provided on the bottle was not clear. She fell sick on consuming it. She filed a case in
the District Forum under Consumer Protection Act and got the relief. Identify the
important aspect neglected by the marketer in the above case.
(a) Packaging (b) Branding
(c) Labelling (d) None of these
57. After acquiring the necessary knowledge and skills on starting an Aloevera Farm,
Ashok wanted to be the leading manufacturer of Aloevera products worldwide. He
observed that the products were expensive as the demand of the products was more
than the supply.
Ashok’s main consideration was about the amount of money paid by the consumers in
consideration of the purchase of Aloevera products. He also thought that competitor’s
prices and their anticipated reactions must also be considered for this. The consumers
will be ready to buy a product when they perceived that the value of the product is at
least equal to the value of money which they would pay. He knew that in the long run,
the business will not be able to survive unless all costs are covered in addition to a
minimum profit. Considering the same, he decided to add some unique features to the
packaging and also decided to provide free home delivery of the products. The above
case relates to a concept which is considered to be an effective competitive marketing
weapon. In conditions of perfect competition, most of the firms compete with each
other on this concept in the marketing of goods and services. Identify the concept.
(c) Place (d) Promotion
58. After completing his M.B.A. education, Mr Rohit took over the business of his father.
Now he started making a practical use of his theoretical knowledge of management.
He liked it very much. But right from the very beginning, he was faced with one
problem. For the last three years continuously, he had been observing that whatever
the sales target he would fix, he never succeeded to achieve it fully. He studied this
problem thoroughly and found that it so happened because in the first year (of his
taking over the business) the government at the centre changed; in the second year,
there was a change in fashion and in the third year, several competing firms entered
SAMPLE PAPER 3
the market.
Now he realised that planning does not foresee everything and that several problems come
in the way of effective planning.
Identify the ‘limitation of planning’ in the event discussed above.
(a) Planning leads to rigidity
(b) Planning may not work in a dynamic environment
(c) Planning reduces creativity
(d) Planning involves huge costs
59. Mr. Raman has a 32 years experience of working in the field of management. He has
maintained proper working in his workplace for many years with his experience and
research work and by observing his colleagues working beside him. State feature of
management highlighted above.
(a) Principles of management are general guidelines
(b) Principles of management are contingent
(c) Flexible
(d) Formed by practice and experimentation
60. According to this principle of scientific management, “Scientific management has for
its foundation the firm conviction that true interest of the management and workers
are one and the same; the prosperity for the employer cannot exist for a long time
unless it is accompanied by prosperity for the employees and vice versa.”
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
SAMPLE PAPER 3
OMR SHEET SP 3
Roll No.
Instructions
by the software.

1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d


Answers
1. (c) 2. (c) 3. (a) 4. (a) 5. (b) 6. (c) 7. (c) 8. (a) 9. (b) 10. (c)
11. (c) 12. (a) 13. (d) 14. (d) 15. (c) 16. (c) 17. (d) 18. (a) 19. (b) 20. (b)
21. (d) 22. (c) 23. (a) 24. (c) 25. (a) 26. (a) 27. (b) 28. (b) 29. (a) 30. (c)
31. (a) 32. (c) 33. (c) 34. (d) 35. (c) 36. (c) 37. (a) 38. (b) 39. (c) 40. (b)
41. (a) 42. (c) 43. (c) 44. (a) 45. (c) 46. (a) 47. (a) 48. (b) 49. (a) 50. (a)
51. (b) 52. (b) 53. (c) 54. (b) 55. (a) 56. (c) 57. (b) 58. (b) 59. (d) 60. (c)
EXPLANATIONS
5. According to unity of direction principle, all 34. Establishing standards for controlling is
the units of an organisation should be moving importance of planning.
towards the same objective through 37. People are being grouped on the basis of
coordinated and focussed efforts. It avoids functions.
duplication of efforts.
38. Marketing starts before production and
8. Labelling is that function which provides continues even after sales as after sales
information about the product. It does not service.
protect it.
39. Decentralisation is a systematic delegation of
9. With the increase in span of management, authority at all levels of management.
more subordinates can be effectively managed
45. Karim has done identification and evaluation
by a superior.
of alternatives.
11. Under this structure, each employee is
46. Motion study means eliminating unnecessary
expected to gain proficiency with regard to
movements.
one function only.
48. Other functions are followed by planning, so
13. Market is classified in many ways such as
planning is the primary function of
according to the time, area, customers or
management.
quantity.
52. Management should reconcile the personal
16. Planning of different department is mutually
objectives with the organisational objectives
dependent as every department work for the
for the harmony in the organisation.
achievement of a common goal.
55. Business environment is a relative concept as
17. Market constitutes those persons who have
it differ from region to region.
ability, willingness and purchasing power to
buy the product. 56. Label may be a small slip or printed statement
that conveys information like nature, content,
21. By providing this offer, they are promoting
ownership, price, etc. about the product to the
their products by using creative ideas.
consumers.
24. Mental revolution is a part of one of the
57. It is the amount paid by a buyer or received
principles of scientific management, i.e.
by a seller in consideration of the
Harmony, not discord.
purchase/sale of a product.
26. Since planning cannot foresee everything, it
58. His targets were not achieved due to change
SAMPLE PAPER 3
may fail in dynamic business environment.

in government, change in fashion and
27. It involves activities required to promote and competing firms entered in the market.
promote and protect the image of a company
59. Principles are developed only after deep and
or its product.
thorough research work.
28. Agricultural and industrial production trends
60. According to the principle of harmony not
are elements of economic environment, but
discord, there should be a complete and
not of technological environment.
proper understanding between management
29. Similar nature activites are grouped under one and workers and they should work together
department. for organisational goals.
31. Employees are grouped as per functions.
SAMPLE PAPER 4
BUSINESS STUDIES
Instructions
Maximum Marks : 40
Section A
1. ……… is the professional association connected to management.
(a) ICAI (b) Bar council
(c) IMA (d) AIMA
2. Effective planning results in decreasing ……… .

(a) coordination (b) proper use of resource
(c) future uncertainties (d) control
3. Foody Ltd., a food delivery service app has recently faced criticism for the tampering
of their product, by their delivery boys. Foody Ltd. decided to put a hologram seal on
SAMPLE PAPER 4
the food packets in order to protect the contents from spoilage, leakage, pilferage,
damage, along with a tag with a safety warning for the consumers to check the seal.
Which concept of marketing discussed above is performing the important function of
communicating with the potential buyer and promoting the sale?
(a) Branding
(b) Product designing and development
(c) Labelling
(d) Packaging
4. The authority-responsibility relationship that exist within the organisation give rise to
(a) different functions within the organisation
(b) different levels in the organisation
(c) management as a multidimensional activity
(d) management as a group activity
5. Principles of management can be modified by the manager when the situation

demands. This statement implies that the principles of management are
(a) rigid (b) contingent
(c) flexible (d) universally applicable
6. Soniya decided to start a business of selling dress material from her house. She did
various online surveys to find out about the preferences of prospective customers.
Based on this, she prepared a detailed analysis of the business. She then made
important decisions including deciding about the features, quality, packaging, labelling
and branding of the dress material. Identify the element of marketing mix discussed
above.
(a) Promotion (b) Market
(c) Product (d) Place
7. Management is multi-dimensional because it has ……… dimensions.

(a) one (b) two
(c) three (d) four
8. Which of the following is/are feature(s) of marketing process?

(a) Satisfying needs and wants of the consumers
(b) Creating a market offering
(c) Developing an exchange mechanism (d) All of the above
9. ……… is a process which is followed to share task in an organisation.

(a) Centralisation (b) Decentralisation
(c) Both (a) and (b) (d) Delegation
10. Due to ever changing environment, planning function has become a ………
responsibility of management.
(a) periodic (b) continuous
(c) casual (d) annual
11. What do we call the division of organisation structure on the basis of products?
(a) Functional organisation (b) Divisional organisation
SAMPLE PAPER 4
12. Mr. Prem is working as a top level manager in a business organisation. He is

responsible to prepare the plans for the company. For this purpose, he first searches
different options to complete the job and then on the basis of their evaluation, he
selects most suitable option. In this way, he takes correct decisions and moves forward.
To which particular point of the importance of planning is the above case related?
(a) Planning facilitates decision-making (b) Planning provides direction
(c) Planning promotes innovative ideas
(d) Planning establishes standard for controlling
13. ……… element of marketing makes the product available to the target customer.
(a) Product (b) Promotion
(c) Physical distribution (d) Price
14. Through environment scanning, business firms can enjoy ……… .

(a) competition (b) first mover advantage
(c) benefit of tax (d) tapping useful resources
15. ‘‘They don’t sell what they make, but they make what they can sell.’’ The concept
referred in the given statement is ……… .
(a) marketing concept (b) societal concept
(c) selling concept (d) production concept
16. Which one of the following is not a step of planning?

(a) Forecasting
(b) Establishing objectives
(c) Valuation of objectives
(d) Induction of employees on the job
17. Firework Ltd, a light manufacturing company launched some new products on Eve of
Diwali which attracted many buyers. To meet the increased demand, the company
employed workers from nearby village. Although the product was in great demand,
appropriate safety warnings for use were not mentioned on the packets that led to
many accidents.
What important product related decision was not taken into the consideration by the
company?
(a) Branding (b) Labelling
(c) Packaging (d) Trademark
18. The court passed an order that all schools must follow the Covid guidelines for school
children. Identify the dimension of the business environment highlighted in this
statement.
(a) Economic environment
(b) Social environment
(c) Legal environment
(d) Technological environment
19. ……… principle of management advocates that, “there should be good superiors at all
levels, clear and fair agreement and judicious application of penalties.”
(a) Authority and responsibility (b) Discipline
SAMPLE PAPER 4
(c) Order (d) None of these
20. Departments are established on the basis of ……… in functional organisation.

(a) activities (b) products
(c) demand (d) market
Statement I Modern marketing concept refers to the group of people who do not have
the ability but willingness to buy a particular product.
Statement II Marketing concept set of actual and potential buyers for a product.
Alternatives
22. With the introduction of photostats machine in the market, the carbon industry was
adversely affected. Which component of environment was responsible for it?
(a) Economic (b) Political
(c) Technological (d) All of these
23. XY Ltd. has grown in size. It was a market leader but with changes in business
environment and with the entry of MNCs, its market share is declining. To cope up
with the situation, CEO starts delegating some of his authority to the staff appointed
under him at various levels throughout the organisation. Identify the concept of
management discussed above.
24. Rahul, a manager expects his subordinates to get the work done as per his instructions
yet has a differential treatment for each person. Which principle of management is
overlooked?
(a) Equity (b) Unity of direction
(c) Unity of command (d) Order
Section B
25. Many kind of external devices, like Compact Discs (CD’s) for computer, have become
obsolete. Google, with its Google Drive service, Apple with its iCloud offering, enables
the users to store documents, photos, music and movies on web-based servers. Identify
the feature of business environment being described in the above lines.
(a) Relativity (b) Dynamic nature
(c) Uncertainty (d) Interrelatedness
26. Mr Reeshabh Bhandari is the chief manager in ‘Bhandari Pustak Parkashans’. He is

fond of continuing to present innovative ideas while planning for his business. His
ideas are usually very significant. It has been observed several times that these ideas
take the form of concrete plans. This is the reason that Mr Bhandari’s contribution to
the growth and prosperity of the company continues to be quite great.
SAMPLE PAPER 4
Identify the ‘importance of planning’ described above.

27. ……… does not mean abdication.

(a) Decentralisation (b) Centralisation
(c) Delegation (d) None of these
28. Assertion (A) Social, legal, technological and political conditions are the specific forces
of business environment.
Reason (R) They have impact on all business enterprises and thus may affect an
individual firm only indirectly.
Alternatives
(b) Assertion (A) is incorrect, but Reason (R) is correct
of Assertion (A)
29. Sarika, a class 12th student, waned to be a manger, so she talked about it with her
mother. But her mother was not really convinced with the idea of her being a manager
instead she wanted her to be a lawyer. What can be the possible reason for her mother
being doubtful?
(a) Management is not considered a worthy profession
(b) Management is not recognised as a full-fledged profession
(c) Managers are not given much respect by the society
(d) Managers are paid less as compared to other jobs
30. Assertion (A) The sales department insisting on a customer friendly design may cause
difficulties in production.
Reason (R) In divisional structure, conflicts may arise among different divisions with
reference to allocation of funds.
Alternatives
of Assertion (A)
31. The process by which managers synchronises the activities of different departments is
known as ……… .
(a) Management (b) Planning
(c) Coordination (d) Controlling
32. Rely Ltd. is engaged in manufacturing plastic buckets. The objective of the company is
to manufacture 80 tubs a day. To achieve this, the efforts of all departments are
co-ordinated and interlinked and authority-responsibility relationship is established
SAMPLE PAPER 4
among various job positions. There is clarity on who is to report to whom.

Name the function of management discussed above.
(a) Organising (b) Planning
33. Pawan is working as a production manager in CFL Ltd. which manufactures CFL
bulbs. There is no class-conflict between the management and workers. The working
conditions are very good. The company is earning huge profits. As a policy, the
management shares the profits earned with the workers because they believe in the
prosperity of the employees.
Identify the principle of management.

(a) Harmony, not Discord (b) Cooperation, not individualism
(c) Science, not rule of thumb (d) Mental revolution
34. Hari Prakash Ltd. is engaged in manufacturing of irons. The target of the organisation
is to manufacture 100 irons a day. There is an occupational specialisation in the
organisation which promotes efficiency of employees. There is no duplication of efforts
in such type of organisation structure.
Identify the type of organisation structure described above.
(a) Divisional organisation (b) Functional organisation
(c) Informal organisation (d) None of these
35. Biyani group of companies decide to donate 2% of its profits to one of the NGOs for
improving the condition of poor in India. This initiative by the company was highly
appreciated by the public and their sales increased by 8%. Identify the objective in the
given lines.
(a) Social (b) Organisational
(c) Personal (d) None of these
36. Systematic planning related to work to be done is helpful in increasing ……… .
(a) cost (b) loss
(c) efficiency (d) None of these
37. Assertion (A) Successful organisations do not achieve their goals by chance but by
following a deliberate process called management.
Reason (R) People in organisation are performing diverse tasks but they are all
working towards the same goal. Management aims at guiding their efforts towards
achieving a common objective.
Alternatives
of Assertion (A)
38. ……… is written in the organisation manual.
(a) Goods purchased
(b) Goods sold
(c) Meeting of organisation
(d) Authority and responsibility of different posts
SAMPLE PAPER 4
39. During the season of Diwali, a company decided to increase its cost on making of
beauty products as more people will be eager to buy the products during the festive
season. But due to the financial situation of people due to covid-19, there was a decline
in buying of such products. It resulted in loss for the company. What can be the reason
for this loss?
(a) The company was not efficient (b) They were not effective in their working
(c) Both (a) and (b) (d) All of these
40. Coordination is considered the essence of management because

(a) it is a common thread that runs through all the activities within the organisation
(b) it is implicit and inherent in all functions of the organisation
(c) it is a force that binds all the functions of management
Statement I False sense of security and complacency lead to failure of planning instead
of success.
Statement II Planning, if implemented properly, guarantees success.
Alternatives
Statement I The principles of Taylor and Fayol are complementary to each other.
Statement II Fayol suggests having an employee suggestion system and Taylor suggest
“thinking before doing”.
Alternatives
43. Which one of the following is not a part of process of organisation?

(a) Departmentalisation
(b) Doing complete centralisation
(c) Establishing reporting relationship
(d) Assignment of duties
44. Name the process of working with and through other to effectively achieve
organisational objectives by efficiently using limited resources in a changing
environment.
(c) Organising (d) Controlling
45. Two friends, Ramesh Singh and Krishan Gopal are working as managers in different
SAMPLE PAPER 4
companies. They met in a family function and had a discussion about the activities
taking place in their organisations. Krishan said now-a-days he is busy in making a
policy regarding what employees have to do, when to do, how to do and for whom to
do, so that departments and individuals are able to work in coordination.
Identify the importance of planning mentioned by Krishan in the above discussion.
(a) Planning reduces the risk of uncertainties
(b) Planning provides direction
46. ……… technique of scientific management concentrates on uniformity in material,

machine, tools etc.
(a) Standardisation of work (b) Method study
(c) Differential piece wage system (d) Fatigue study
47. How many standardised forms of organisation structure are there?

(a) Two (b) Three
(c) Four (d) No definite number
48. Which of the following is not a benefit of planning?

(a) Planning reduces overlapping and wasteful activities
(b) Planning is a mental exercise
(c) Planning provides directions
(d) Planning reduces the risks of uncertainty
Section C
BP Ltd. is a company dealing in distribution of medical equipment’s. The company recently
imported 18,500 units of best quality blood pressure testing machines to test the blood pressure
levels with the help of a chip based machine, with the motive of profit maximisation. For
deciding the marketing strategy, the marketing manager of the company called a meeting of the
marketing heads of different zones. In the meeting, Mr. Gourang, the east zone marketing head,
suggested that since the machines were sophisticated they need to visit hospitals personally, to
explain its working to the hospital staff who would be using the machines. Mr. Viabhav
suggested that the price of the machine should be affordable to all as this machine is used by
hospitals as well as households.
49. “In the meeting, Mr. Gourang, the east zone marketing head, suggested that since the
machines were sophisticated they need to visit hospitals personally, to explain its
working to the hospital staff who would be using the machines.” Identify the element
of promotion mix being highlighted in the above lines.
(a) Personal selling (b) Advertising
(c) Sales promotion (d) Public relation
50. “For deciding the marketing strategy, the marketing manager of the company called a
meeting of the marketing heads of different zones.” Identify the function of marketing
highlighted in the above lines.
(b) Product designing and development
SAMPLE PAPER 4
(c) Marketing planning

(d) Standardisation and grading
51. “The company recently imported 18,500 units of best quality blood pressure testing
machines”. Identify the function of marketing highlighted in the given lines.
(b) Procurement of goods and services
(c) Marketing planning
(d) Standardisation and grading
52. Which component of marketing mix has not been discussed in the above case?
(a) Product (b) Promotion
(c) Place (d) None of these
53. “The company recently imported 18,500 units of best quality blood pressure testing
machines to test the blood pressure levels with the help of a chip based machine, with
the motive of profit maximisation.” Which marketing philosophy have been adopted
by BP Ltd.?
(a) Production concept (b) Selling concept
(c) Product concept (d) Marketing concept
54. In the above said case, Mr. Vaibhav is discussing about which marketing mix strategy?
(a) Product mix (b) Price mix
(c) Promotion mix (d) Place mix
55. Ananya ‘s grandfather while telling her about the past of Indian economy told her that
even after opening up of our economy in 1991, foreign companies found it very
difficult to cut through the bureaucratic red tape to get permits for doing business in
India. Sometimes it took months to process even their application in process. As a
result, these companies were discouraged from investing in India but the situation has
improved overtime. Identify the element of business environment which was the cause
for discouragement to foreign companies based on above case.
(a) Economical (b) Social
(c) Political (d) Legal
56. Immunity Ltd. is engaged in the manufacturing of metal products. It was a market
leader but due to failure to cope up with the changes in business environment on time,
it lost its market share. Mr. Anil, a founder of the company analysed the situation
critically and decided to involve the employees while making decisions and delegate
some of the authority to various employees at various levels throughout the
organisation.
Identify the concept of management highlighted in the given case.
57. The term ‘public relations’ refers to ……… .

(a) A non-personal form of communication
(b) Conducting a variety of programs designed to promote or protect company’s image
(c) Short-term incentives, which are designed to encourage the buyers to make immediate
purchase
(d) Oral presentation of message in the form of conversation with one or more prospective
SAMPLE PAPER 4
customers
58. ‘Chandra Chemicals Ltd.’ is a newly established company in chemical industry. The
goals of the company have been very well defined. The employees know what the
organisation aims at doing and what they should do for the realisation of the goal. The
company did the planning in such a way that all the departments and employees are
able to work in coordination. This is the result of successful planning that the company
is moving forward on the path of success.
On the basis of the event stated above, tell why planning is important?
(a) Planning provides direction.
(b) Planning reduces the risk of uncertainty.
(c) Planning reduces overlapping and wasteful activities.
(d) Planning promotes innovative ideas.
59. Rahul, as an efficient worker, wanted more than average salary. But the company’s goal
was to maximise profit and thus they denied Rahul’s request. Rahul did not like the
company’s decision and therefore created chaos in the company, by breaking the
company’s rules. Which principle(s) of management is being violated here?
(a) Remuneration of employees
(b) Subordination of individual interest to general interest
(c) Discipline
(d) Both (b) and (c)
60. “A sales person is asked to clinch a deal with a buyer and is allowed to give 10%
discount by the marketing manager. But finance department tells him not to offer more
than 5% discount.” Which managerial principle has been violated in aforesaid
situation?
(a) Unity of command (b) Unity of direction
(c) Scalar chain (d) Discipline
SAMPLE PAPER 4
OMR SHEET SP 4
Roll No.
Instructions
by the software.

1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d


Answers
1. (d) 2. (c) 3. (c) 4. (b) 5. (c) 6. (c) 7. (c) 8. (d) 9. (d) 10. (b)
11. (b) 12. (a) 13. (c) 14. (b) 15. (a) 16. (d) 17. (b) 18. (c) 19. (b) 20. (a)
21. (b) 22. (c) 23. (c) 24. (a) 25. (c) 26. (d) 27. (c) 28. (b) 29. (b) 30. (d)
31. (c) 32. (a) 33. (b) 34. (b) 35. (a) 36. (c) 37. (c) 38. (d) 39. (a) 40. (d)
41. (a) 42. (c) 43. (b) 44. (a) 45. (b) 46. (a) 47. (a) 48. (b) 49. (a) 50. (c)
51. (b) 52. (d) 53. (c) 54. (b) 55. (c) 56. (c) 57. (b) 58. (a) 59. (d) 60. (a)
EXPLANATIONS
1. All India Management Association is the 29. Management is not a full-fledged profession, it
professional association connected with is going to be a profession.
management. 30. Inter-departmental conflict is a disadvantage
3. Label carries information about the product and of functional structure.
the producer in the form of a tag, sticker etc. 32. Organising means identifying and grouping
6. Product mix refers to important decisions the work to be performed, delegating the
related to product such as quality, design, authorities and establishing reporting
packing etc. relationships
7. Management is a multi-dimensional, which 33. According to this principle, managers should
includes three dimensions i.e. management of share part of profit to workers and workers
work, people and operations. should not demand useless things.
16. The process of planning covers 34. Functional structure deals in only one line of
product and gets functional specialisation.
· Establishing objectives (Setting objectives)
· Forecasting (Developing premises) 39. Company is not efficient because the products
are manufactured by the company at high
· Valuation of objectives
cost.
(Evaluation of alternatives)
41. Planning does not guarantee success, as it is
19. Principle of discipline says that there should be
just a forecasting.
a good commitment of managers and workers.
44. Management is a process of getting things
21. Modern marketing concept means discovering done from others.
potential customers and creating goods or
services to fulfil their needs and wants. 47. As per the latest CBSE syllabus, there are only
two standardised forms of organisation
24. Principle of equity says that there should be a structure, i.e. functional and divisional structure.
equal and fair treatment with employees
56. Decentralisation means dividing the work till
without any discrimination.
lower level.
25. Business environment is largely uncertain as it
58. Planning ensures effective implementation of
is very difficult to predict future happenings.
SAMPLE PAPER 4
plans and direction of efforts towards

26. Planning is a process of thinking in advance, attainment of objectives.
about finding better methods of productivity. 60. According to this principle, orders should be
28. Social, legal, technological and political received from one boss only.
conditions are the general forces of business
environment.
SAMPLE PAPER 5
BUSINESS STUDIES
Instructions
Maximum Marks : 40
Section A
1. Identify the feature of coordination being highlighted in the given statement
“coordination is not a one-time function, it begins at the planning stage and continue
till controlling.”
(a) Coordination ensures unity of action (b) Coordination is an all-pervasive function
(c) Coordination is a continuous process (d) Coordination is a deliberate function
2. Planning is the ……… function of management.

(a) first (b) second
(c) third (d) fourth
3. ……… is the process of giving name, term, symbol or design of a product to identify
SAMPLE PAPER 5
and differentiate it from competitors.

(a) Labelling (b) Branding
(c) Packaging (d) Grading
4. ……… managers do not interact with the work force directly.

(a) Supervisory (b) Operational
(c) First line (d) Middle level
5. Which principle of general management advocates that, “Employee turnover should be

minimised to maintain organisational efficiency”?
(a) Stability of Personnel (b) Remuneration of Employees
(c) Equity (d) Esprit De Corps
6. As the winters were approaching, Dev bought a leather jacket for himself. Identify the
type of product utility being described in the given case.
(a) Functional utility (b) Psychological utility
(c) Social utility (d) All of these
7. The possibilities of inadequate profits or even losses due to uncertainties are known as
……… .
(a) Business contingencies (b) Business ventures
(c) Business risks (d) None of these
8. The decision areas related to managing inventory, storage and warehousing and
transportation represent ……… component of marketing mix.
(a) product (b) price
(c) place (d) promotion
9. ……… enables a manager to use his time on high priority activities.

(a) Decentralisation (b) Centralisation
(c) Delegation (d) None of these
10. Generally, it is thought that planning is related to the planning cycle. It means that a
plan is framed, it is implemented and it is followed by another plan and so on. The
above statement is related to a feature of planning, identify it.
11. Grouping of activities on the basis of functions is a part of

(a) decentralised organisation
(b) divisional organisation
(c) functional organisation
(d) centralised organisation
12. Organisational plans are drawn up by the ……… .

(a) lower level management (b) middle level management
(c) Both (a) and (b) (d) top level management
13. Naina, a 5 year old girl, is feeling hungry and is insisting to eat only pizza and nothing
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else. Identify the related feature of marketing being highlighted in the given line.
(a) Needs and wants (b) Creating an offering
(c) Exchange mechanism (d) None of these
14. “Advertisement of drugs are banned in the country.” Which dimension of business
environment is reflected by the above statement?
(a) Legal (b) Social
(c) Technological (d) Political
Statement I Marketing is merely a business phenomenon or confined only to business
organisations.
Statement II For any exchange to take place, each party should be willing to enter into
a transaction with each other.
Alternatives
16. “Planning is deciding in advance what to do, when to do it, and who is to do it.” This
has been described by
(a) Koontz and O’Donnell (b) Haimann
(c) Allen (d) Terry
17. Star Ltd. is a large multinational company and operates in many countries of the
world. The company is in the business of Insurance, Health care, Information
Technology, Business Process Outsourcing, Computer Education, Security, etc. What is
being marketed by the company in the given case?
(a) Setting objectives idea (b) Service
(c) Place (d) Information
18. Customers, suppliers, debtors, etc. are the elements of ……… environment.
(a) internal (b) external
(c) macro (d) None of these
19. Principles of management are considered as ……… .

(a) readymade solutions to problems (b) general guidelines
(c) methods and procedures (d) rules and regulations
20. Which of the following is not the advantage of divisional organisational structure?
(a) Product specialisation helps develop varied skills of divisional head.
(b) It helps in fixation of responsibility in case of poor performance of the division.
(c) It promotes flexibility and initiative because each division functions as an autonomous
unit.
(d) It is economical as there is no duplication of activities across products.
21. Which marketing concept states that the firm should undertake aggressive advertising
techniques to convince customers to buy the product?
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(a) Production (b) Product (c) Selling (d) Marketing
22. Which of the following best indicates the importance of business environment?
(a) Identification (b) Improvement in performance
(c) Coping with rapid changes (d) All of these
23. For delegation to be effective, it is essential that responsibility be accompanied with

necessary ……… .
(a) authority (b) manpower
(c) incentives (d) promotions
24. According to Henri Fayol, ‘‘if this principle of general management is violated,
authority is undermined, discipline is in jeopardy, order disturbed and stability
threatened.” Identify the principle.
(a) Authority and responsibility (b) Discipline
(c) Unity of command (d) Equity
Section B
25. On account of continuing Corona virus, for months together there remained the
lockdown. During this period, the people remained confined to their houses. The
articles of food and drink which used to be ordered from the market began to be
prepared at home. From the ‘YouTube’ and ‘Google’, the home makers learnt to
prepare everything at home, which earlier used to be available at the sweet-maker’s
shop and restaurants.
The people realised that every food item prepared at home was more tasty and
nutritious than that of the market. Now, the people have become used to it. Even when
the lockdown was lifted the people preferred the home-made food and sweets to have.
It so appears that now the consumption habits of people have changed. This habit of
the people has affected the market. To which particular dimension of the business
environment, is the above stated incident related?
26. Nishant Arora is working as the production head in the ‘Omitor Ltd.’. He is preparing
a plan for production of goods for his department. He is taking the help of company’s
objectives and keeping in mind the future technological upgradations as the base of his
plan. He is of the view that a good plan can be prepared by learning about the
possibilities of future changes and upliftment in technology through the medium of
forecast. The plan being prepared by Nishant is very important as it will become the
base for other plans of the company. Identify the feature of planning in above event.
27. ……… divides the burden of taking managerial decisions which helps in taking quick
and best decisions.
28. Assertion (A) Suppliers affect any business directly but political environment affect it
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indirectly.
Reason (R) Business environment is a relative term. It differs from country to country
and region to region.
Alternatives
(b) Assertion (A) is corect, but Reason (R) is incorrect
of Assertion (A)
29. Which of the following is a function of top level management?

(a) Ensuring quality of output
(b) Assigning necessary duties and responsibilities to their departments
(c) Taking responsibility for all the activities of the business and its impact on the society
30. ‘‘The question is not whether there should be decentralisation, but decentralisation to
what degree.‘’ What information regarding decentralisation is given in this statement?
(a) Meaning (b) Feature
(c) Definition (d) Importance
31. The manager of the company properly supervises the work and helps in motivating
their subordinates and take proper decision for his organisation. Which function of
management is followed here?
(a) Directing (b) Co-ordination
(c) Staffing (d) Planning
32. In which situation, the divisional structure happens to be appropriate?

(a) Where the number of major products is more than one
(b) Where the size of the organisation is quite large
(d) Where primarily only one product is sold
Statement I Unity of command means one employee getting orders and instructions
from one supervisor.
Statement II Functional foremanship is the extension of principle of unity of
command.
Alternatives
34. Assertion (A) When lower level managers are given freedom to take their own
decisions, they learn to depend on their own judgement.
Reason (R) In decentralisation the chances of information getting distorted are high as
it goes through long channels.
Alternatives
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of Assertion (A)
35. In order to survive, an organisation must earn enough ……… to cover ……… .
(a) revenue and cost (b) cost and revenue
(c) image and cost (d) cost and image
36. Sulochna Maliwal is working as the production manager in the ‘Rakshit Medicines Pvt.
Ltd.’ She is to prepare the production budget for the calendar year 1st January, 2020 to
31st December, 2020. While preparing the budget for her department, she considered it
proper to mainly keep in view the Corona virus spreading world-wide. Keeping this
fact in mind, in the beginning months, in order to face the virus, she gave preference to
preparing the necessary material rather than the other items. Due to the planning done
in this manner, the company got a big success.
Which particular point of importance of planning do you learn about from the event
described above?
37. Assertion (A) Management is multidimensional.

Reason (R) The effect of management is noticeable in an organisation when targets are
met according to plans, employees are happy and satisfied, and there is orderliness
instead of chaos.
Alternatives
of Assertion (A)
38. Span of management refers to

(a) number of managers.
(b) length of term for which a manager is appointed.
(c) number of subordinates under a superior.
(d) number of members in top management.
39. In order to become a lawyer, one has to register himself as a member of Bar Council of
India. Which feature of profession is being highlighted?
(a) Specified code of conduct (b) Restricted entry
(c) Service motive (d) Professional association
40. Harish, the chairperson of ‘ABC enterprises’ (Non-profit organisation), believes that the
objectives of the foundation can be achieved without a proper management system.
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Which characteristic of management is overlooked in this case?

(a) Management is multi-dimensional
(b) Management is all pervasive
(c) Management is goal oriented
(d) Management is group activity
41. In order to be effective and successful, planning should be ……… .

(a) flexible (b) stable
(c) rigid (d) None of these
42. ……… principle of Taylor suggests that there should be open communication system
and there is no need for trade union.
(b) Cooperation, not individualism
(c) Development of workers to their greatest efficiency and prosperity
(d) Science, not rule of thumb
43. The CEO of E-solutions Pvt. Ltd. is of the opinion that decentralisation awards greater
autonomy to the lower levels of management as well as divisional or departmental
heads. This allows them to function in a manner best suited to their department and
fosters a sense of competition amongst the departments. Consequently, with each
department doing its best in a bid to outdo the other, the productivity levels increase
and the organisation is able to generate more returns which can be used for expansion
purposes.
Identify the point of ‘importance of decentralisation’ mentioned here.
(a) Quick decision-making
(b) Relief to top management
(c) Facilitates growth
(d) Better control
44. Shyam Private Ltd., a biscuit manufacturing company set the target to produce 700
packets of biscuits per month at the cost of ` 10 per packet. Ajay, a worker worked
double shift and produced around 850 packets at the cost of ` 13 rs per packet. Another
worker, Vijay mainly focused on cost and handled resources very carefully, so he
produced 650 packets at the cost of ` 9 per packet.
On reading the above situation, what quality does the worker Ajay is lacking?
(a)Effectiveness
(b)Efficiency
(c)Both efficiency and effectiveness
(d)None of the above
Statement I Planning shows the way to deal with changes and expected events.
Statement II Planning reduces uncertainty.
Alternatives
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46. Name the technique of Taylor which is the strongest motivator for workers to reach
standard performance.
(a) Development of workers to their greatest efficiency and prosperity
(b) Work study
(c) Differential piece wage system
(d) Simplification of work
47. Anita opened her own travel agency, sometime back. She assigned work to her three
employees in the following manner, Shreya, you are incharge of air plane, train and
bus reservations. Ankit, you will take care of accommodation booking. Sahil, you will
keep track of online queries and credit card payment. I want regular reports from the
three of you.
Identify the concept of management discussed above.
(a) Delegation (b) Centralisation
(c) Organisation structure (d) None of these
48. “Planning helps the management to anticipate the future and prepare for the risks by
making necessary provisions”. It indicates one of the merits of planning. Identify it.
(a) Planning promotes innovative ideas
(b) Planning facilitates decision-making
(c) Planning reduces risks of uncertainty
(d) Planning establishes standards for controlling
Section C
‘Ghadi Pvt. Ltd.’ is a detergent powder manufacturing company. The company’s sale speed has
been running slow for the last about two years. Recently, the company replaced the present
marketing manager by Mr. Ravish Kumar. Mr. Kumar made several efforts to increase the sale,
which are as follows
First of all, Mr. Kumar spoke to a well-known T.V. channel and reached an agreement with them
to get the company’s product advertised during the course of their so often seen programmes.
Immediately, the positive result of this effort was visible. Along with it, he prepared a plan to
make the customers, particularly housewives, aware of the product. To do so, he organised a
team of 50 members.
The team’s job was to make the company’s product available at the customers’ houses to
acquaint the customers with the qualities of the product and removing their doubts there and
then. This effort of Mr. Kumar proved to be quite successful.
Mr. Kumar felt very much encouraged on finding his efforts proving to be successful. Besides the
above efforts, he followed one more formula. Under this formula, a small packet of 100 gms
powder was announced to be given freely along with a big packet of one kilogram of detergent
powder. This scheme of the company was also very much welcomed by the customers.
In no time, the company’s sale increased many times and it became a leader in detergent udyog.
The company’s success, attracted the attention of the media to itself. On the story of the
company’s success an interview of its C.E.O. was published in a well-known newspaper. Every
probable customer who read this interview became the company’s actual customer.
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49. Which marketing mix discussed in above case?

(c) Place (d) Promotion
50. First of all Mr. Ravish Kumar, followed the advertisement as a promotional tool.
Identify the feature of it.
(a) Impersonal presentation (b) Personal form
(c) Oral conversation (d) All of these
51. Mr. Kumar built a team. The team’s job was to make the company’s product reach the
houses, to make the customers aware of its qualities and to remove their doubts there
and then. Identify this system of promoting sales.
(c) Sales promotion (d) Publicity
52. Mr. Kumar announced to give a small packet of 100 gms free along with a big packet of
one kilogram of detergent powder. Identify this method of promotion.
(a) Sales promotion (b) Personal selling
(c) Sales publicity (d) Advertising
53. The interview of the company’s C.E.O. was published in a newspaper. Identify the
promotion method out of the following.
(a) Personal selling (b) Advertising
(c) Sales promotion (d) None of these
54. “Along with it, he prepared a plan to make the customers, particularly housewives,
aware of the product.” Which marketing function is discussed in the given lines?
(a) Gathering information (b) Marketing plan
(c) Standardising (d) Grading
55. Sarthak Ltd. is a big business unit. Mr. Singh has already defined the objectives and
policies of the business very clearly in order to run his business successfully. He has an
intimate relationship with the buyers, sellers and competitors etc., and in case of any
difference of opinion, he takes the situation under his own control at the earliest
possible.
He fully knows about the business environment and its importance. He also knows
that the business environment is not the only factor related to business, but it includes
the factors like economic, social, political, and technological and several other factors
which are present outside the business. That is why the advantage of business
environment can be taken only when a sharp eye is kept on all its factors. Identify the
feature of business environment stated in the above event.
(a) Dynamic nature
(b) Inter-relatedness
(c) Totality of external forces
(d) Specific and general forces
56. Have you ever paid attention to how the school fete which you enjoy so much, actually
takes place? What goes on behind the scene to make it the desired reality you want?
The whole activity is divided into task groups each dealing with a specific area like the
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food committee, the decoration committee, the ticketing committee and so on. These
are under the overall supervision of the official in charge of the event. Coordinating
relationships are established among various groups to enable smooth interaction and
clarity about each group’s contribution towards the event.
Name the function of management highlighted in the above case.
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling
57. Gagan, the marketing manager of Skylane Ltd. stresses that a company cannot achieve
its objectives without understanding the needs of its customers. It is the duty of the
businessmen to keep consumer satisfaction in mind because business is run by the
resources made available to them by the society. He acknowledged that he himself was
taking into consideration the needs of the customers and that was the prime reason for
success of his business. Identify the type of thinking that guided Gagan in the
marketing efforts of his business as described in above lines.
58. Karan decided to start a chocolate manufacturing business. He sets the target of
earning 15% 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.
Identify the two steps of planning followed by Karan in the above case.
(a) Implementing the plan and follow up
(b) Identifying alternative course of action and evaluating them
(c) Developing premises and identifying the alternative courses of action
(d) Setting objectives and developing premises
59. Principle of scalar chain needs to be followed in an organisation where work is carried
out by a lot of people at different level whereas it is of not much importance in the
companies where work is performed by individual. Which feature of management
principles is followed here?
(a) Flexible (b) General guidelines
(c) Mainly behavioral (d) Contingent
60. According to Taylor, “each specialist is to be assigned work according to his/her

qualities, the employees who possess technical mastery should be involved in planning
work whereas those with energy and good health may be assigned execution work.”
Name the related principle of scientific management.
(a) Functional foremanship
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OMR SHEET SP 5
Roll No.
Instructions
by the software.

1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d


Answers
1. (c) 2. (a) 3. (b) 4. (d) 5. (a) 6. (a) 7. (c) 8. (c) 9. (c) 10. (a)
11. (c) 12. (d) 13. (a) 14. (a) 15. (b) 16. (a) 17. (b) 18. (b) 19. (b) 20. (d)
21. (c) 22. (d) 23. (a) 24. (c) 25. (b) 26. (b) 27. (b) 28. (d) 29. (c) 30. (d)
31. (a) 32. (c) 33. (a) 34. (b) 35. (a) 36. (b) 37. (d) 38. (c) 39. (d) 40. (b)
41. (a) 42. (b) 43. (c) 44. (b) 45. (b) 46. (c) 47. (c) 48. (c) 49. (d) 50. (a)
51. (b) 52. (a) 53. (d) 54. (b) 55. (c) 56. (b) 57. (c) 58. (d) 59. (b) 60. (c)
EXPLANATIONS
3. Branding is the process of giving a 33. Functional foremanship is the extension of

distinguishing feature to a product to principle of division of work.
differentiate it from competitor’s product. 34. Decentralisation allows less chances of
4. The middle level managers interact with the information getting distorted because it does not
supervisory/operational/first-line managers who have to go through long channels.
in turn interact with the workers directly.
36. Company develop future premises and work
5. Stability of personnel means turnover of accordingly to reduce the risk of future uncertain
employees should be minimised to increase events.
organisational efficiency.
37. Management is multi-dimensional as it includes
6. Functional benefits are based on a product
management of work, persons and operations.
attributed that provides the customer with
functional utility. 38. Span of management refers to the number of
11. In functional structure activities are grouped and subordinates that can be effectively managed by
departments are created on the basis of specific a superior. The span of management to a large
functions to be performed. extent gives shape to the organisational
structure.
13. The focus of marketing process is on the
satisfaction of the needs and wants of individuals 39. For every profession, there is an association
and organisations. made by the government.
14. If there is any law made by the goverment for the 40. Management is applicable to all types of firms
welfare of the society, avoidance of which will whether it is profit or non-profit organisation.
attract penalty, then it will come under legal 45. Planning deals with the unexpected events.
environment.
48. Planning reduces uncertainty as with the help of
15. Marketing is not only relevant for business
planning, an enterprise can predict future events
organisations but it is also relevant for non-profit
and make due provisions for them.
organisations.
17. Star Ltd. has the business of intangible products 53. The interview of the company’s CEO was
like Insurance, IT, BPO etc. and all are covered published in a newspaper is related to public
under services. relations.
21. Selling concept means earning profit through sales 55. “It includes the factors like economic, social,
volume by using any promotional measures. political,and technological and several other
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factors which are present outside the business.”

23. According to the principle of authority and
These lines highlighted the feature totality of
responsibility, responsibility should be
external forces.
accompanied with required authority.
28. Supplier being specific force, affect the 58. “He sets the target of earning 15% profit on sales in
environment directly and political environment the first year”. This is related to setting objectives.
being general force affect the environment “He used this information as the base for future
indirectly. planning and shared it with his team.” This is
31. This function is related with leading, influencing, related to developing premises.
guiding, supervising and motivating people 60. According to this principle, main focus is on
towards the attainment of planned targets. proper selection of employees and providing
them proper training.
SAMPLE PAPER 6
BUSINESS STUDIES
Instructions
Maximum Marks : 40
Section A
1. Poonam is using environmental friendly methods of production. She is trying to
achieve ……… objective of management.
(a) social (b) organisational
(c) personal (d) economical
2. Planning requires logical and systematic thinking rather than guess work or wishful
thinking. Identify the related feature of planning.
(a) Planning is futuristic
(b) Planning is a mental exercise
(c) Planning establishes standards for controlling
(d) Planning focuses on achieving objectives
3. Marketing is called a ……… process because it involves interaction of buyers and

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sellers.
(a) economic (b) social
(c) legal (d) political
4. Irfan and Naseeruddin, both got training from National School of Drama, New Delhi
but they perform differently. Which feature of art is associated with the above fact?
(a) Based on practice and creativity (b) Universal validity
(c) Existence of theoretical knowledge (d) Personalised application
5. If marketing manager allows the sales executive to grant 25% discount where as
finance manager instructs not to offer more than 15% discount then sales executive will
be confused due to the lack of ……… .
(a) unity of direction (b) unity of command
(c) discipline (d) equity
6. Guneet went to a shop and expressed her desire to buy a copper water bottle only of Prestige
company. Identify the component related to branding being described in the above case.
(a) Trademark (b) Generic name (c) Brand name (d) Brand mark
7. Management is considered important because
(a) it helps an organisation to adapt to the changes.
(b) seeks to integrate individual efforts.
(c) it helps in development of the society.
8. In order to promote green initiative, Basak Limited has started using eco-friendly
packaging containing plantable seeds. What is being marketed in the given case?
(a) Information (b) Place
(c) Idea (d) All of these
9. ……… coordinates human efforts, assembles resources and integrates both into a
unified form to be utilised for achieving specified objectives.
(c) Organising (d) Directing
10. ……… are the anticipated environments in which plans are expected to operate.
(a) Planning premises (b) Forecasting
(c) Objectives (d) None of these
11. Organising is a process by which the manager
(a) establishes order out of chaos.
(b) removes conflict among people over work or responsibility sharing.
(c) creates an environment suitable for teamwork.
12. Planning involves thorough examination and evaluation of each alternative and
choosing the most appropriate one. Identify the feature of planning from above
statement.
(a) It planning is pervasive (b) It is a mental exercise
(c) It is continuous process (d) It involves decision-making
13. Which of the following can be marketed?
(a) Red cross society persuading to donate blood
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(b) Kerala tourism persuading people to visit Kerala for health tourism
(c) Political parties persuading to vote for a particular candidate
14. Understanding of business environment helps the firm to identify opportunities to get
the ……… .
(a) early warning signals (b) first mover advantage
(c) dynamic nature (d) None of these
15. ……… concept of marketing emphasises on affordability and easy availability of the
products.
(a) Product concept (b) Selling concept
(c) Marketing concept (d) Production concept
16. Planning is the most challenging activity for the management as ……… .
(a) it guides all future actions leading to growth and prosperity of the business
(b) specific goals are set out in the plans along with the activities to be undertaken to
achieve the goals
(c) if there is no planning, employees would be working in different directions and the
organisation would not be able to achieve its desired goals
17. VK Limited company is dealing in glassware products. Over the years, the company
has established high reputation for itself because of its high quality products.
Consequently the customers have become habitual of the brand and do not mind
paying a little higher for it. Identify the concept being described in the given case.
(a) Differential pricing
(b) Product differentiation
(c) Functional utility
(d) Environmental variable
18. Which of the following does not characterise the business environment?
(a) Uncertainty (b) Complexity
(c) Relativity (d) None of these
19. Fayol’s principle of division of work can be applied to ……… kind of work.
(a) technical (b) managerial
20. ……… is defined as the framework within which managerial and operating tasks are
performed.
(a) Span of management (b) Organisational structure
(c) Informal organisation (d) None of these
Statement I Social marketing concept is followed generally by marketers, in present
time.
Statement II Production concept is used where demand is more than supply.
Alternatives
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22. Even though the political conditions vary from country to country, they impact the
sentiment of an investor in the business, if the instability of the political conditions
cause uncertainty and make it difficult for him to predict the future. Which feature of
the business environment is being highlighted in the above statement?
(a) Specific and general forces (b) Dynamic nature
(c) Relativity (d) All of these
23. After completing a course in journalism, when Vidhu joined a publication company,
she was assigned a challenging media coverage project by her superior. This helped to
boost her self-esteem and improve her confidence from day one. Identify the point of
importance related to the concept being described in the above lines.
(a) It facilitates the growth of an organisation
(b) Motivation of employees
(c) It facilitates better coordination
24. According to Taylor, “each specialist is to be assigned work according to his/her
qualities, the employees who possess technical mastery should be involved in planning
work whereas those with energy and good health may be assigned execution work.”
Name the related principle of scientific management.
(a) Functional foremanship (b) Science, not rule of thumb
Section B
25. Ritika Singh is working as the C.E.O. in a company. She lays a special emphasise on the
fact that the company continues to always have sweet relations with its customers.
Besides, to have a close eye on the business environment, she considers as the secret of
any business. Recently, she noticed that the government was preparing a policy to
invite the foreign companies. The government planned to give them several
concessions. Miss Singh saw through the government intention and started preparing
herself for it. Identify the point of ‘importance of business environment’ from the
incident stated above.
(a) It helps the firm in identifying the threats and early warning signals
(b) It enables the firm in identifying opportunities and getting the first mover advantage
(c) It helps in tapping useful resources
(d) It helps in coping with rapid changes
26. Identify the correct sequence of steps of planning process.
(a) Setting objectives, identify alternative courses of action, implementation of plan,
evaluation of alternative courses of action
(b) Setting objectives, implementation of plan, evaluation of alternative courses of action,
identify alternative courses of action
(c) Setting objectives, identify alternative courses of action, implementation of plan,
evaluation of alternative courses of action
(d) Setting objectives, identify alternative courses of action, evaluation of alternative
courses of action, implementation of plan
SAMPLE PAPER 6
27. “Mr. Bhushan is working as a marketing manager in Swastik Colour TV Ltd. which has
20 per cent of the current market share in the country. He aims at enhancing his market
share to 30 per cent, in the next three years. He will have to develop a complete
marketing plan covering various important aspects including the plan for increasing
the level of production, promotion of the products, etc. and specify the action
programmes to achieve these objectives.
Identify the function of management highlighted in the above case.
(a) Marketing planning (b) Packing and labelling
(c) Product designing and development (d) Standardisation and grading
28. Assertion (A) Business environment is aggregative in nature.

Reason (R ) Business environment is the sum total of all things external to business
firms.
Alternatives
of Assertion (A)
(d) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation
of Assertion (A)
29. In an organisation, the objective of marketing department is to increase sales by 10% by

offering discounts. However the finance department is reluctant to offer discounts as it
means loss of revenue. One of the benefits of coordination helped to resolve the
conflict. Identify it.
(a) Growth in size (b) Specialisation
(c) Functional differentiation (d) Both (a) and (c)
30. Assertion (A) Production mix is the combination of all decisions taken by marketers
regarding product.
Reason (R ) Product mix covers only tangible attributes of products.
Alternatives
of Assertion (A)
of Assertion (A)
31. Josh Enterprises decided to have a meeting of all the key employees of different
departments in the organisation. The main motive is to tell the employees to keep the
target of 20% increase in sales as the main objective when they work throughout the
year.
The meeting is full of ideas regarding the employees and processes involved. Various
plans are made to harness the potential of the employees and streamline the processes.
However with the passage of a few days, the external business environment checks the
capability of the organisation to adapt to the situations. The company successfully
comes out at the end of the year with flying colours.
What is/are the various characteristics of management you can find highlighted here?
(a) Multidimensional (b) Goal oriented
(c) Pervasive (d) Both (a) and (b)
SAMPLE PAPER 6
32. ……… can be delegated by using the process of delegation.

(a) Responsibility (b) Accountability
33. According to this principle of scientific management, the employees should be

rewarded for their suggestions which results in substantial reduction in the cost.
(a) Science, not rule of thumb (b) Co-operation, not individualism
(c) Harmony, not discord (d) All of these
34. Indigo Limited has a staff of 300 people working in different departments like
production department, finance department, technology department, human resource
department, etc. Identify the type of organisational structure being followed by the
company.
(c) Informal structure (d) None of these
35. Which one of the following statements is not correct?

(a) Management is a goal-oriented process (b) Management is a continuous process
(c) Management is an intangible force (d) Management is a rigid process
36. A sales manager was required to make a forecast of sales post covid-19 impact for 4th
quarter 2020. He considered the sales of 1st quarter and 3rd quarter of current year and
previous year. He followed ……… step of planning process.
(a) Setting objectives (b) Follow up
(c) Developing premises (d) Identifying alternative courses of action
37. This level of management serves as a link between top level managers and first line
managers.
(a) Supervisory level management (b) Operational management
(c) Middle level management (d) None of these
38. Within 2 years of it’s inception, Bhavishya Limited has created a very positive
reputation about itself and its products in the eyes of general public by participating
extensively in various social welfare programmes. Identify the component of
promotion mixing described in the given lines.
(c) Public relation (d) Sales promotion
39. Assertion (A) Lower level managers interact with the actual workforce, pass on
instructions, supervise their work, maintains quality products, maintain safety
standards so on.
Reason (R ) The job of the lower level is complex and stressful, demanding long hours
and commitment to the organisation.
Alternatives
of Assertion (A)
of Assertion (A)
40. ……… is defined as the ability to accomplish something with the least amount of
SAMPLE PAPER 6
wasted time, money, and effort or competency in performance.

(a) Effectiveness (b) Efficiency
(c) Management (d) Coordination
Statement I Planning is closely connected with creativity and innovation.
Statement II Before doing something, the manager must formulate an idea of how to
work on a particular project.
Alternatives
42. ……… principle of management suggest the concept of replacing ‘I’ with ‘we’.
(a) Order (b) Equity (c) Esprit de corps (d) None of these
43. With the onset of the thought of producing a thing, the process of ……… starts.
(a) buying (b) selling (c) marketing (d) producing
44. Unique India Ltd. decided to synchronise all the activities of organisation. While
deciding what is to be done, when it is to be done, they tried to bring harmony
between organisational goal and individual goal. While hiring employees, HR
department made sure people with right qualification only joined the organisation and
they are paid as per their qualification. Further the directors made arrangement that at
the end of every three months, performance of the employees is compared with
planned performance so that steps can be taken to check the deviation. Identify the
concept of management.
(a) Planning (b) Staffing (c) Controlling (d) Coordination
45. Radha Rani is the C.E.O. of ‘Radhika Sales Pvt. Ltd.’ Besides other managerial
activities, she is an expert in planning. While planning for her company, she noticed
that at first several options are gathered, then their evaluation is done and finally the
most suitable option is selected. Once she faced a problem which had only one
alternative available as a solution and to select this very option was her compulsion.
Now, for the first time she realised that the necessity of planning is there only when
several options are available. Identify the feature of planning in the event stated above.
Statement I Stability of personnel principle said that employee turnover should be
minimised.
Statement II Principle of remuneration says that every employee should be paid as per
time spend by him in the organisation.
Alternatives
47. Harshit is planning a start up a venture for offering mobile pet care services at door
SAMPLE PAPER 6
step. He has decided to charge ` 1,000 for heated hydro bath and blow dry of a pet and
` 500 for shampoo and conditioning. Identify the element of marketing mix which is
not being described in the above case.
(a) Product (b) Place (c) Price (d) None of these
48. Virat decided to start a desert cooler manufacturing business. He sets the target of
earning 20% profit on sales in the first year. He was very much concerned about the
future prospects of the business, which were uncertain. For this, he gathered
information from the potential market and analysed that the demand for wall mounted
coolers is increasing day-by-day. He used this information as the base for future
planning. On the basis of the gathered information, he called a meeting in the

following week to find new methods to achieve the objective. Identify the next step,
which has been followed by Virat that is related to the process of one of the functions
of management.
(a) Setting objectives (b) Evaluating alternative courses
(c) Developing premises (d) Identifying alternative course of actions
Section C
It is one of the managerial functions that is concerned with defining and grouping the activities
of the enterprise and establishing authority relationships among them. Under this function,
activities of similar nature are grouped together. This function leads to a systematic allocation of
jobs amongst the workforce. This reduces the workforce as well as enhances productivity
because of the specific worker performing a specific job on a regular basis. This managerial
function provides a framework within which managerial and operating tasks are performed.
49. Which function of management is discussed in the case?
(a) Planning (b) Organising (c) Controlling (d) Directing
50. Identify the importance of managerial function discussed in the given para.
(a) Benefits of specialisation (b) Clarity in working relationships
(c) Effective administration (d) Development of personnel
51. Which step of organising is highlighted in the lines, “This function leads to a
systematic allocation of jobs amongst the workforce”?
(c) Assigning duties (d) Reporting relationship
52. Which step of organising is highlighted in the lines, “Under this function, activities of
similar nature are grouped together”?
53. What type of specialisation is highlighted in the given case?

(a) Product specialisation (b) Functional specialisation
54. “It is one of the managerial functions that is concerned with defining and grouping the
activities of the enterprise and establishing authority relationships among them”.
Which step of organising is highlighted in the above lines?
55. ‘Gupta Store’, which is located in the centre of the city is a big shop of the commodities
SAMPLE PAPER 6
of daily use. The owner of this shop Mr. Saajan Gupta, has very good relations with his
customers, suppliers and competitors. He knows it that if his customers are dissatisfied
with him, its negative impact will be there only on him and not on the other firms.
Therefore, he takes full care of their requirements. Similarly, Mr. Gupta also knows that
if there is any change in the customs as well as in the technology, its impact will be
there not only on him but also on all the firms of his industry. No firm has control over
such changes, even then Mr. Gupta remains on guards against them. The above event
is dependent on one of the ‘features of business environment’. Recognise this feature.
56. The marketing manager of Green Gold Pvt. Ltd. Mr. Roy while taking decision
consider what product will be produced, with what features and at what price shall it
be sold or where shall it be made available for sale depending on what do the
customers want. If the customers want features like double door in a refrigerator or a
separate provision for water cooler in it, the organisation would produce a refrigerator
with these features, would price it at a level which the customers are willing to pay
and so on.
Identify the marketing philosophy followed by Mr Roy.
(a) The marketing concept (b) The selling concept
(c) The product concept (d) The production concept
57. Triton Ltd. entered into the market with computers and have now introduced products
like audio systems, air-conditioners washing machines, etc. The company is not only
offering the products, but also handling complaints and offering after-sales services.
Identify the element of marketing-mix discussed here.
(a) Place mix (b) Product mix
(c) Promotion mix (d) Price mix
58. Suhani, a home science graduate from a reputed college has recently done a cookery
course. She wished to start her own venture with a goal to provide ‘healthy food’ at
reasonable price. She discussed her idea with her teacher (mentor) who encouraged
her. After analysing various options for starting her business venture, they shortlisted
the option to sell readymade and ‘ready to make ‘vegetable shakes and sattu milk
shakes. Then they both weighed the pros and cons of both the shortlisted options.
Name the function of management being discussed above.
59. Through this principle of management, Henri Fayol guides the managers to exhibit
exemplary behaviour and advises that they should not fall into temptation of misusing
their powers for personal benefit at the cost of general interest of the organisation.
Which principle of management is being described in the above statement?
(b) Centralisation and decentralisation
(c) Subordination of individual interest to general interest
(d) Equity
60. In pizza hut, the workers have been divided in groups for more fast and organised
work. 1st prepares the dough and base, 2nd prepares all the toppings and spices, 3rd
bakes and packs it and 4th serves it to the customers. They all work in coordination
and pizza hut gets loved for their amazing taste and services and becomes a
well-known pizza brand. Identify the principle of management used by pizza hut here.
(a) Stability of personnel (b) Esprit de corps
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(c) Discipline (d) Unity of command

OMR SHEET SP 6
Roll No.
Instructions
by the software.

1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d


Answers
1. (a) 2. (b) 3. (b) 4. (d) 5. (b) 6. (c) 7. (d) 8. (c) 9. (c) 10. (a)
11. (d) 12. (d) 13. (d) 14. (b) 15. (d) 16. (a) 17. (a) 18. (d) 19. (c) 20. (b)
21. (c) 22. (c) 23. (b) 24. (a) 25. (a) 26. (d) 27. (a) 28. (c) 29. (c) 30. (b)
31. (d) 32. (d) 33. (b) 34. (a) 35. (d) 36. (c) 37. (c) 38. (c) 39. (b) 40. (b)
41. (c) 42. (c) 43. (c) 44. (d) 45. (c) 46. (a) 47. (d) 48. (d) 49. (b) 50. (a)
51. (a) 52. (b) 53. (b) 54. (d) 55. (d) 56. (a) 57. (b) 58. (a) 59. (c) 60. (b)
EXPLANATIONS
4. Both are using their personal skills. 34. In functional structure, work is divided as per
5. Unity of command means order should be given functions.
by one superior at a time, so that employees are 35. Management is not a rigid process, it is flexible
not being confused. as per situation.
6. Prestige is a unique name for product. 38. Public relations activities focus on social welfare.
8. It is about inventing a future possibility and then 39. The job of top management is complex and
building a product or service to deliver on that stressful.
promise. 42. Esprit de corps principle says that work should
12. Planning involves decision-making by selecting be performed in a team not individually.
the most appropriate alternative after evaluation. 43. Marketing starts before production and
15. Production concept emphasises on large quantity continues even after selling.
production, so that product is easily available 44. Coordination is a process by which a manager
and price of the products are also affordable due synchronises the activities of different
to bulk production. departments to achieve the common
22. Relativity means environment is different from organisational goals.
country to country or region to region. It is the force that binds all other functions of the
23. The concept described in the given case is management.
delegation and the importance highlighted is 45. “To select this very option was her compulsion.
motivation of employees. Now, for the first time she realised that the
24. In functional foremanship, each worker is allotted necessity of planning is there only when several
work as per his speciality and his qualification. options are available”.
25. “Miss Singh saw through the government These lines indicate that planning involves
intention and started preparing herself for it”. decision-making.
These line show the importance of business 46. Principle of remuneration says that every
environment. employee should be paid fairly and adequately
27. A proper future marketing plan should be prepared as per his/her working in the organisation.
to achieve the marketing objectives of the firm. 47. Product, price and place mix have been
28. Business environment is the totality of external discussed in the paragraph
forces. Product-Qualities of product
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30. Product mix covers both tangible and intangible Price-Pricing of product
attributes. Place-Providing product at door step of
31. This case covers all the dimensions – customers.
management of work, people and operations. 55. Mr. Gupta focuses on internal (specific) and
32. Authority can be delegated by adopting the external environment (General).
process of delegation. 59. This principle says that employee should focus
33. This principle says that to increase the on organisational interest first and then personal
coordination level between worker and manager, interest.
the management should reward the employees 60. This principle says that employees should work
for their great suggestions and employees also in a coordinated way to achieve the
reduce their demands. organisational goals.
SAMPLE PAPER 7
BUSINESS STUDIES
Instructions
Maximum Marks : 40
Section A
1. Management is essential for which type of organisation?
(a) Profit or non-profit organisation
(b) Service organisation
(c) Social organisation
2. Planning promotes ……… to encourage new ideas that can take shape of concrete
plans.
(a) innovation (b) thinking
(c) imagination (d) working
3. Which of the following statements is/are not true with regard to the concept of
product?
(a) It is a bundle of utility
(b) It is a source of satisfaction
(c) It is confined to physical product
4. Radhey Ltd. is diversifying its product lines. Which organisational objective it is

trying to achieve?
(a) Survival (b) Profit
(c) Growth (d) All of these
5. During Covid-19, Special’s Ltd. faced a lot of losses in their traditional clothing
business due to decrease in sales. Due to the financial crisis, Raj and Raman were only
paid 75% of their salary. State the principle followed.
(b) Stability of tenure of personnel
(c) Subordination of individual interest to general interest
(d) Differential piece wage system
6. ‘Beauty Products Ltd.’ is a natural and ethical beauty brand famous for offering
organic beauty products for men and women. The company uses plant based materials
for its products and is the No. 1 beauty brand in the country. It not only satisfies its
customers but also believes in overall protection of the planet.
Identify the marketing management philosophy being followed by ‘Beauty Products Ltd’.
(a) Product concept (b) Societal concept
(c) Marketing concept (d) Selling concept
7. Management creates an ……… of an enterprise where individuals working together in

groups perform efficiently and effectively towards achievement of group goals.
(a) internal environment (b) external environment
(c) economic environment (d) ecological environment
8. ……… refers to a variety of programmes to promote and protect a company’s image.

(a) Advertising (b) Sales promotion (c) Public relations (d) Personal selling
9. It is the nature of the organising function of management to establish ……… between

the activities/departments/positions of the enterprise.
(a) revolt (b) coordination (c) stability (d) dynamism
10. Planning provides the goals or standards against which actual performance is
measured. Identify the related point to the importance of planning.
(a) Planning is a mental exercise
(b) Planning provides directions
(d) Planning reduces the risks of uncertainty
11. A management expert was invited by ‘Raghav Ltd.’. He gave a lecture in the meeting
of employees on the importance of organising function of management. He said that
under this function, the establishment of working relationships clarifies lines of
communication and specifies who is to report whom. This removes ambiguity in
transfer of information and instructions. It helps in creating a hierarchical order
thereby enabling the fixation of responsibility and specification of the extent of
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authority to be exercised by an individual. Identify the point of importance of

organising highlighted in the above case.
(a) Benefit of specialisation (b) Optimum utilisation of resources
(c) Clarity in working relationships (d) Development of personnel
12. ……… means the plans are monitored to ensure that the desired objectives are
achieved efficiently and effectively.
(a) Determining planning premises (b) Follow up
(c) Evaluating all the alternatives (d) Implementing a plan
13. The basic role of firm under ……… concept is to identify a need and satisfy it better
than its competitors.
(a) production (b) product (c) selling (d) marketing
14. Skype industries is facing a lot of opposition as it pays less salary to women workers as
compared to men workers. Which dimension of environment is being violated by the
company?
(a) Economic environment (b) Legal environment
(c) Political environment (d) Social environment
15. ‘Airtight container protects the product from moisture’. Which function of packaging is
being highlighted?
(a) Product identification (b) Product protection
(c) Product promotion (d) Facilitating use of the product
16. India has 22 of the world’s 30 most polluted cities, therefore the central government
has approved an outlay of ` 10,000 crore for three years till 2022 to subsidise electric
vehicles and drive the adoption of electric mobility in the country. Identify the step in
the planning process being described in the above lines.
17. ‘Feather Ltd.’ is a large multinational company and operates in many countries of the
world. The company is in the business of business process outsourcing, knowledge
process outsourcing, etc. What is being marketed by the company?
(a) Ideas (b) Place (c) Events (d) Services
18. As a foreign tourist visited India, he noticed that Indian markets, tastes, trends and
regulations were different from that of his country. Which feature of business
environment is reflected here?
(a) Uncertainty (b) Dynamic (c) Relative concept (d) All of these
19. Standard time taken by the worker to make one cardboard box is 20 minutes. Ajit
Kumar, a worker has to put in 8 hours of work in a shift with one hour allowed for rest
lunch. His standard output should be ……… .
(a) 21 boxes (b) 23 boxes (c) 24 boxes (d) 16 boxes
20. Which of the following is not a merit of functional structure?
(a) It promotes control and co-ordination within a department
(b) It makes training of employees easier, as the focus is only on a limited range of skills
(c) It ensures that different products get due attention
(d) It leads to occupational specialisation
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Statement I Corrugated box containing 50 units of toothpaste is an example of
transportation packaging.
Statement II Packaging acts as a silent salesman as it promotes the product and
increases its sales.
Alternatives
22. “With increase in birth rate and fall in death rate, the infants now have bigger share in
composition of population. It has increased the demand for baby products, like milk
bottles, toys, etc.” Identify the component of business environment.
(a) Political (b) Legal
(c) Economical (d) Social
23. ……… is the basis of organising function of management.

(a) Controlling (b) Leadership
(c) Division of work (d) None of these
24. There should be a proper balance between ........................ of decision-making powers

with top management and ………………… of decision-making power among more
than one person.
(a) concentration, dispersal (b) concentration, centralisation
(c) concentration, transfer (d) centralisation, dispersal
Section B
25. Assertion (A) Timely understanding of business environment helps to make suitable
changes in the organisation.
Reason (R) A firm gets various resources or inputs from its business environment.
Alternatives
of Assertion (A)
26. Planning cannot foresee everything, and thus, there may be obstacles to effective
planning. Identify the related limitation of planning.
(c) Planning does not guarantee success
(d) Planning reduces creativity
27. What assists in planning and helps in policy formation?

(a) Scientific management (b) Business environment
(c) Group dynamics (d) None of these
SAMPLE PAPER 7
28. Two Big Banner Movies were scheduled to be released on the same date. However, at
the last moment, release of one movie had to be postponed due to opposition by a
group of people because of some unethical content in the movie. The loss suffered by
movie postponed, provided opportunity for the released movie, to earn huge revenues.
Which feature of business environment is highlighted in the given case?
(a) Inter-relatedness (b) Relativity
(c) Complex (d) Uncertainty
29. Mr. Raman, the manager of PQR Ltd. believes that the members of any organisation
should work in a common direction to achieve the organisational goal. There is a
requirement of integrated efforts of all, as all departments are interrelated to each
other. Therefore, there is a need to harmonise individual goal with organisational
goals.
Which concept Mr. Raman has discussed about?
(a) Management (b) Direction
(c) coordination (d) Planning
30. Assertion (A) Marketing management is generally related to creation of demand.

However, in certain situations, the manager has to restrict the demand.
Reason (R) The marketing management is only concerned with creating demand but
not managing the demand effectively, as per the situation in the market.
Alternatives
of Assertion (A)
31. Management is ……… as it can’t be seen but its effects can be felt in the form of results
like whether the objectives are met and whether people are motivated or not and there
is orderliness and coordination in the work environment.
(a) intangible force (b) tangible force
(c) internal force (d) external force
32. ……… means that unit of many parts, every part of which performs separate functions
but is still connected with the main unit in a definite relationship.
(a) Organisation (b) Planning
(c) Controlling (d) Directing
33. “In dealing with a situation of conflict between two departments, a manager may
emphasise the primacy of the overall goals of the organisation.” Which aspect of
managerial principles has been highlighted in aforesaid situation?
(a) Universal (b) Flexible
(c) General guidelines (d) Behavioural
34. Miss Bindu is working as the Production Manager in a company. She divided the work
among her subordinates in accordance with their interest and ability. Not only this, she
SAMPLE PAPER 7
even gave them all the authorities to take decisions relating to their work. At the end of
the first month of the year, it was found that Mr. Raj Sabharwal had not achieved his
target. He was lagging far behind his target. Miss Bindu asked him to give the reason
within two days why his performance was low.
With which concept of management, the conversation between Miss Bindu and Mr. Raj
referred to in the above paragraph is related?
(a) Authority (b) Accountability
(c) Responsibility (d) None of these
35. At times, a business may concentrate more on producing goods with fewer resources
i.e., cutting down cost but not achieving the targeted production. Consequently, the
goods do not reach the market and hence the demand for them declines and
competitors enter the market. Which aspect of management was ignored in this
situation?
(a) Efficiency (b) Effectiveness
(c) Productivity (d) Coordination
36. Which of the following statement is not true with reference to planning?
(a) Planning is a pre-requisite for controlling
(b) Planning does not leads to rigidity
(c) Planning enables a manager to look ahead and anticipate changes
(d) Planning facilitates coordination among departments and individuals in the
organisation
37. Assertion (A) Management is called an inexact science.

Reason (R) Management deals with complex human behaviour, which cannot be
determined with accuracy.
Alternatives
of Assertion (A)
38. ……… is the central point according to the marketing concept.

(a) Customer’s satisfaction (b) Customer’s welfare
(c) Quality of the product (d) Quantity of the product
39. Organisations are made up of people who have different personalities, backgrounds,
experiences and objectives. They all become part of the organisation to satisfy their
diverse needs. Which objective of management is highlighted in aforesaid statement?
(a) Organisational objective (b) Social objective
(c) Personal objective (d) None of these
40. The subject of management is taught at different institutions. Some of these have been
set up with the specific purpose of providing management education such as the
Indian Institutes of Management (IIMs) in India. Entry to different institutes is usually
through an examination. Which aspect of management is highlighted in aforesaid
SAMPLE PAPER 7
statement?
(c) Management as a science and an art (d) Management as a profession
41. Planning is a ……… exercise as it requires application of mind involving foresight,
intelligence, imagination and sound judgement.
(a) mental (b) judicious (c) judgemental (d) thinking
42. ……… is responsible for preparing the time and cost sheet.
(a) Instruction card clerk (a) Speed boss
(c) Time and cost clerk (d) Route clerk
43. The labelling of a pack of oats explains how the product is beneficial in adding fibre to
the diet and the other related health benefits. Identify the related function of labelling
being described in the given case.
(a) Describes the product and specifies its content
(b) Identification of the product or brand
(c) Grading of products
(d) Helps in promotion of the products
44. Through their efforts, quality of output is maintained, wastage of materials is
minimised and safety standards are maintained. Which level of management is
highlighted in aforesaid statement?
(a) Top level of management (b) Middle level of management
(c) Operational management (d) None of these
Statement I Planning can eliminate business risk.
Statement II Planning avoids misunderstanding and duplication of efforts.
Alternatives
Statement I Scalar chain is crucial to ensure unity of command and effective
communication in the organisation.
Statement II Esprit de corps means all employees should be treated in the same
manner.
Alternatives
47. On visiting a supermarket to buy a pack of moisturiser, Harsha noticed that the
packaging of most of the beauty products exhibited a photograph of a celebrity.
Identifythe related function of packaging being described in the given case.
(a) Facilitates the use of product (b) Assists in promotion of the product
(c) Helps in product identification (d) Provides protection to the product
SAMPLE PAPER 7
48. It is not always true that just because a plan has worked before, it will work again.
Identify the related limitation of planning.
(b) Planning reduces creativity
(c) Planning may not work in a dynamic environment
(d) Planning does not guarantee success
Section C
Jolly Good Ltd. is a well-known entertainment company in Bengaluru. The main divisions of the
company include television, print, and films. Each unit has a divisional manager responsible for
performance and who has authority over the unit. All its divisions are multifunctional as within
each division functions like production, human resource, marketing, finance, purchase etc., are
performed simultaneously for the accomplishment of desired goals. Keeping in view, the nature
of work, the company has shaped a narrow span of control across at all levels.
49. Which function of management discussed in above case?

50. Identify the type of organisational structure being followed by the company.
(c) Network structure (d) Matrix structure
51. Which of the following may not be a reason for the company to adopt this type of
structure as identified in question above?
(a) Promotes product specialisation
(b) Helps in fixation of responsibility in cases of poor performance of a unit
(c) Leads to economies of scale and this lowers cost
(d) Promotes flexibility and initiative
52. Which of the following statement is true about span of management?

(a) It gives shape to the organisational structure
(b) It determines the levels of management in the structure
53. Keeping in view the policy of the Jolly Good Ltd., it is likely to have ……… number of
levels in management.
(a) More (b) Less
(c) Difficult to define (d) None of these
54. “All its divisions are multifunctional as within each division functions like production,
human resource, marketing, finance, purchase, etc. are performed simultaneously”.
Which step of organising highlighted here?
(c) Assigning duties (d) Reporting relationships
SAMPLE PAPER 7
55. Once the ‘Sharda Club, Delhi’ organised ‘Health Care Week’ for its members. It had a
very positive effect on its members. Now the members had become more careful about
their health than earlier. Not only this, the members also acquainted the people outside
the club to take advantage out of it. The changing attitude of the people towards health
was visible in the market also. Now a great demand for sugar free products, fat free
cooking oil and diet coke rose up in the market. The manufacturers had to immediately
increase their production. ‘Sharda Food Producers, Delhi’ brought/launched these
products in the market first of all and earned a great profit.
Which particular ‘feature of the business environment’ does the event described above
acquaint us with?
56. Madhubala is planning to launch an online education portal. In order to understand

the varied needs of the students, she conducted an online survey. Based on the
feedback of the survey, she has decided to offer educational packages to the
prospective buyers.
Identify the type of marketing concept being described in the given lines.
57. Karam Limited is offering a travel package for 15 destinations worldwide with a free
insurance on the bookings for the month of December, 2021. Identify the feature of
marketing being described in the above lines.
(a) Needs and wants (b) Creating a market offering
(c) Customer value (d) Exchange mechanism
58. Chintu, Product Head at Ashok Leyland Limited, plans to make his company best of
the decade. For this purpose, he sets objectives, prepares strategies and other action
plans keeping the internal as well as external forces in mind so that departments and
individuals working in the organisation are able to decide what action should be taken
and in which direction. Identify the importance of management highlighted in the case.
(a) Planning reduces uncertainty (b) Planning reduces overlapping
(c) Planning provides direction (d) Planning facilitates decision-making
59. Raman is a very efficient employee of “Hamlyn”. He performs a lot of tasks everyday.
He keeps a check on proper working of subordinates working under him. He has to
submit a monthly analysis to his boss about the best ways in which a goal can be
completed, best techniques by which goal can be achieved in minimum time, etc. He
also has to do analysis on rest intervals required by employees to maintain efficient
working. Identify the job not performed by Raman.
(a) Method Study (b) Motion Study
(c) Fatigue Study (d) Time Study
60. Principles of management emphasise on logical and rational decision-making rather

than on the basis of bias and prejudice. The given statement highlights that the
knowledge of principles of management leads to
(a) providing managers with useful insight into reality.
SAMPLE PAPER 7
(b) scientific decisions.

(c) meeting changing environmental requirement.
OMR SHEET SP 7
Roll No.
Instructions
by the software.

1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d


Answers
1. (d) 2. (a) 3. (d) 4. (c) 5. (c) 6. (b) 7. (a) 8. (c) 9. (b) 10. (c)
11. (c) 12. (b) 13. (d) 14. (b) 15. (b) 16. (c) 17. (d) 18. (c) 19. (a) 20. (c)
21. (c) 22. (d) 23. (c) 24. (a) 25. (d) 26. (b) 27. (b) 28. (a) 29. (c) 30. (b)
31. (a) 32. (a) 33. (c) 34. (b) 35. (b) 36. (b) 37. (a) 38. (a) 39. (c) 40. (d)
41. (a) 42. (c) 43. (d) 44. (c) 45. (b) 46. (a) 47. (b) 48. (d) 49. (b) 50. (a)
51. (c) 52. (c) 53. (a) 54. (b) 55. (b) 56. (c) 57. (c) 58. (c) 59. (b) 60. (b)
EXPLANATIONS
1. Management is all pervasive, it is required in all 29. Coordination means synchronisation of efforts of
types of organisations. individuals towards common goal.
3. Product concept emphasises on profit 30. The marketing management is not only
maximisation through quality of product. concerned with creating demand but also
managing the demand effectively in certain
6. This concept focusses on social welfare with
situations.
customer satisfaction.
11. Clarity in working relationship means removing 35. In the above case, effectiveness is ignored
because they didn’t achieve the target on time.
the confusion about who reports to whom.
16. The government of India sets the target to reduce 36. Planning leads to rigidity as plans are static.
the number of polluted cities and for this 43. It is providing additional information to attract
purpose, developing future premises to subsidise customers.
electric vehicles.
44. Lower level management deals directly with
17. BPO and KPO provides services. workers and the process of production.
18. Business environment is a relative concept as it 45. Planning can reduce the business risk but can’t
differs from country to country and region to eliminate it completely.
region.
46. Principle of equity says that all employees
19. Ajit has 7 hours i.e. 420 minutes should be treated in the same manner.
He prepares a box in 20 min. 47. In this way, packaging is making promotion of
So in 420 min., he should prepare 420/20 = 21 product.
boxes.
53. Company has to follow wider span of
22. It represents the customs and traditions, values, management by increasing the levels.
culture, social trends, beliefs, norms and ethics of
55. All the forces and factors of business
a society in which business enterprise operate.
environment are inter-related.
23. The first and foremost activity in organising
56. In the given case, needs and wants of the
function is to identify and divide the work as per
students are being identified and focused.
specialisation.
57. Company is increasing utility in the service to
SAMPLE PAPER 7
25. Proper scanning of business environment helps

increase customer value.
to arrange resources required to make suitable
changes in the organisation. 59. Time study–“He has to submit a monthly
analysis to his boss about the best ways a goal
27. Since, business environment is a source of
can be completed”.
identifying opportunities and threats, its proper
analysis and understanding provides the base for Fatigue study–“He also has to do analysis on rest
planning and guides in framing policies. intervals required by employees to maintain
efficient working”.
28. All the forces and factors of business Method study–“Best techniques by which goal
environment are inter-related to each other.
can be achieved in minimum time”.
SAMPLE PAPER 8
BUSINESS STUDIES
Instructions
Maximum Marks : 40
Section A
1. Ram, Amit and Akhil are employees working in the same factory. The factory receives
a big order of producing 500 units in 3 days. The success of the order guarantees great
future prospects for the factory, the order must be completed in the given time with
minimum cost. Help Mr. K choose a suitable employee for the job, who can direct other
employees to achieve the goal.
• Ram is hardworking employee who aims at completing the task on time no matter
what the cost and even if it means working overtime.
• Amit is finance minded person who prioritises cost effective production.
• Akhil believes in following both time and cost analysis for achieving the task.
(a) Only Ram (b) Only Amit
SAMPLE PAPER 8
(c) Only Akhil (d) Both Ram and Amit
2. Planning is closely related with ……… .

(a) creativity (b) innovation
3. Which one of the following factors is not relevant in price fixation?

(a) Obtaining market leadership (b) Age of an organisation
(c) Value for money (d) Product differentiation
4. The goal of the Harsh retail store is to increase sales and the goal of the Cuts Society of
India is to impart education to children of special category. Management unites the
efforts of different individuals in the organisation towards achieving these goals.
Identify the characteristics of management discussed above.
(a) Management is all pervasive (b) Management is a goal oriented process
(c) Management is multi–dimensional (d) Management is a continuous process
5. Values are formed through ……… where as principles are formed through ……… .
(a) research, experimentation (b) research and experimentation, practice
(c) practice, research and experimentation (d) None of these
6. Marketing plays a very important role in the economy by

(a) raising living standard of the people
(b) ensuring smooth flow of goods through efficient distribution system
(c) accelerating economic activity
7. ……… is the skillful and personal application of existing knowledge to achieve desired
results.
(a) Science (b) Art
(c) Profession (d) Management

Statement I Advertisement is an important element of marketing mix by which
marketer encourage exchange of goods and services in the market.
Statement II Promotion mix is one of the element of marketing mix.
Alternatives
9. ……… helps to provide stability and growth, despite of external changes occurring in
business environment.
(a) Effective administration (b) Benefits of specialisation
(c) Adaptation to change (d) Development of personnel
10. Girish is working as the top level manager in a business organisation. He has been
given the job of preparing the plans for the whole company. Mr. Girish is an expert in
making a correct forecast. At first, he looks for the different options to complete every
SAMPLE PAPER 8
job, and then on the basis of their evaluation selects the most suitable option. In this
way, by taking correct decision and beating his competitors, he is moving forward.
To which particular point of the ‘importance of planning’ is the above event related?
(b) Planning promotes innovative ideas
(d) Planning facilitates decision-making
11. When decisions taken by the lower levels are numerous as well as important, an
organisation can be regarded as greatly ……… .
(a) centralised (b) decentralised
(c) efficient (d) None of these
12. ……… department of a company manages public grievances.
(a) Marketing (b) Public relation
(c) Finance (d) Production
13. A company has to decide its price policy, credit policy, terms of payment, etc. Name the
concept which the company is trying to decide.
(a) Price mix (b) Place mix
(c) Product mix (d) Promotion mix
14. Which of the following dimensions of business environment includes legislations
passed by the government and administrative orders issued by government
authorities?
(a) Technological environment (b) Social environment
(c) Legal environment (d) Economic environment
15. At which level of packaging, the immediate container is referred to?
(a) Primary (b) Secondary
(c) Tertiary (d) None of these
16. The success of an enterprise is possible only when ................ are properly drawn up
and implemented.
(a) plans (b) facts
(c) data (d) budget
17. Mohit selected the brand name for his new product line after carefully assessing the
various available alternatives. The feature of planning being highlighted in the given
lines is ……… .
(a) planning involves decision–making (b) planning is futuristic
(c) planning is pervasive (d) planning is continuous
18. …………… is considered a major element of the economic environment.
(a) Public debt
(b) The nature of relationship of our country with foreign countries
(c) Birth and death rate
(d) Literacy rates
19. Management principles establish ……… relationship between two variables.
SAMPLE PAPER 8
(a) cause and effect (b) contingent

(c) Flexible (d) None of these
20. Which of the following is not a demerit of divisional structure?
(a) It is an expensive structure to maintain, since there may be a duplication of activities
across products.
(b) All functions related to a particular product are integrated in one department.
(c) Conflict may arise among different divisional heads due to different interests.
(d) Authority provided to the managers to supervise all activities related to a particular
division may lead to undesirable consequences.
21. ……… ensures a particular level of quality of the product and helps in building the
confidence of the customers.
(a) Packaging
(b) Branding
(c) Labelling
22. Environment is a source of various resources for running a business. To engage in any
type of activity, a business enterprise assembles various resources called inputs like
money, machine, material, men, etc. from its environment including financers,
government and suppliers. Which importance of business environment is highlighted
by this statement?
(a) It helps in tapping useful resources
(b) It helps in coping with rapid changes
(c) It helps in assisting in planning and policy formulation
(d) It helps the firm to identify threats and early warning signals
23. When decision-making authority is retained by higher management levels, an

organisation is said to be ……… .
(a) decentralised (b) centralised
(c) fragmented (d) None of these
24. Ayesha, a manager decided that there will be separate departments for finance,
marketing, production and sales in her company. By doing so, she is following a
principle of management. Name that principle.
(a) Division of work (b) Equity
(c) Order (d) Unity of direction
Section B
25. Specific attitude that elected government representatives hold towards business is
called ……… environment.
(a) legal (b) social
(c) technological (d) political
26. .............. step in the process of planning is concerned with putting the plan into action.
(a) Evaluation of alternatives (b) Follow–up
(c) Setting objectives (d) Implementation of plans
27. Smita Ltd., a manufacturer of water proof mobiles achieves a breakthrough by

SAMPLE PAPER 8
developing a mobile which is water proof. This product has created a good image of
the company in the market. This development is effectively communicated by the
company to its dealers and prospective customers. The company has also set-up a
department that advises its top management to adopt such programmes which will
add to its public image. Name the term that is used for this activity.
(a) Advertising (b) Sales promotion
(c) Public relation (d) Personal selling
28. Assertion (A) Turbulent market conditions, less brand loyalty, division and
sub-division of markets are just a few of the images to describe business environment.
Reason (R) Business environment is dynamic where changes are taking place at a slow
pace.
Alternatives
of Assertion (A)
29. Jyoti Ltd. decided to give more stress on the following

• to use environmental friendly methods of production,
• to provide employment opportunities to the disadvantaged section of the
society and
• to make available basic amenities like schools and creches to the employees. Identify
the objective of management discussed above.
30. Which of the following philosophy of marketing assumes that in the long-run, an
organisation can achieve its objective of maximisation of profit by identifying the needs
of its buyers?
(a) Selling (b) Marketing
(c) Product (d) Societal
31. .............. increases the importance of the subordinates.

(c) Delegation (d) Specialisation
32. Assertion (A) Departmentalisation facilitates specialisation.

Reason (R) Departments can be created using several criteria as a basis for division
of work.
Alternatives
of Assertion (A)
SAMPLE PAPER 8
Statement I An organisation can never be completely centralised or completely
decentralised.
Statement II The technique of ‘mental revolution’ is derived from the scientific
principle of cooperation, not individualism given by Taylor.
Alternatives
34. What is the key to managerial post?

(a) Responsibility (b) Authority
(c) Accountability (d) None of these
35. A and B are working as departmental heads in best living limited. A has been entrusted
with the responsibility of clothes division whereas B is heading the equipment
division. Identify the type of organisational structure adopted by the company.
(a) Divisional (b) Functional
(c) Matrix (d) None of these
36. All other managerial functions are performed within the framework of the plans
drawn. Identify the related feature of planning.
(b) Planning is pervasive
(c) Planning is futuristic
(d) Planning is primary function of management
37. Under what function of management, the relationship between different posts
(positions) is explained?
(a) Planning (b) Communication
(c) Organising (d) Supervision
38. Assertion (A) Personal selling involves face-to-face interaction between buyer and
seller for the purpose of sale.
Reason (R) Public relations are strategic management function that adds value to an
organisation by helping it to manage its reputation.
Alternatives
of Assertion (A)
39. When organisation grows, ……… structure of departments becomes complicated and
SAMPLE PAPER 8
creates problem in coordination.

(a) functional (b) divisional
40. The need of organising function of management lies ……… .

(a) in business organisation
(b) in non-business organisation
(d) None of these
41. Name the step in the process of planning which is considered as the “real point of
decision-making”.
(a) Selecting an alternative
(b) Setting objectives
(c) Evaluating alternative courses
42. Beena, a student of management, likes to relate what she learnt in class to real life
situations. She observed many situations while watching educational programmes on
television that remind her of concepts of scientific management. In one such
programme, factories manufacturing parts for products like automobiles, computers
and mobile phones were being telecast. According to you, Beena should have related
……… technique of scientific management being used by factories.
(a) motion study
(b) time study
(c) standardisation and simplification
(d) method study
43. Which of the following statement is true for marketing?
(a) It is a process whereby people exchange goods and services for money
(b) It has been referred to as performance of business activities that direct the flow of goods
and services from producers to consumers.
(c) It includes many activities that are performed even before goods are actually produced
and continue even after the goods have been sold.
44. ‘Raghav Pvt. Ltd.’ has divided the whole of its business into five departments. Now the
company’s General Manager is telling all the employees what different jobs are to be
done by them. While giving the jobs to the employees, the nature of job and the
person’s ability to do the job is especially being taken into account. This also has been
pre-determined who will report to whom. This makes it clear who is superior/senior
and who is subordinate.
Identify the function of management highlighted here.
(a) Organising (b) Planning
(c) Controlling (d) Staffing
45. Rakhi Dua is employed at the middle level management of Punjab Food Suppliers.
Working in her department, she noticed that they are asked to implement the plans
prepared by the top management without making any change. Many a time, even
though wishing to do she cannot make any change in them. As a result of it, the
initiative and creativity of the managers at the middle level management, gets killed.
SAMPLE PAPER 8
Not only this, several times, even opportunities of advantage slip out of hand. Rakhi is
very unhappy with this state of affairs of the company and she is thinking of shifting to
some other company at the earliest.
Identify the ‘limitation of planning’ in the above event.
(a) Planning reduces creativity
(c) Planning involves huge costs
46. Which of the following statement is false with respect to principles of management?
(a) The principles of management are formed by experience and collective wisdom of
managers as well as experimentation.
(b) The principles of management are not rigid prescriptions, which have to be followed
absolutely.
(c) Management principles aim at influencing behaviour of human beings.
(d) The application of principles of management is not contingent or dependent upon the
prevailing situation at a particular point of time.
47. 20% discount is given on One Plus smart phone by Amazon India for four days i.e.,
from 15th August to 18th August, only. Identify the promotion tool used.
(a) Public relation (b) Advertisement
Statement I Planning will be a futile exercise if it is not acted upon or implemented.
Statement II Planning is time consuming and sometimes not much time is left for its
implementation.
Alternatives
Section C
Sureksha Pvt. Ltd. is a well-established knowledge process outsourcing company with
experienced specialists in different areas. The company provides services for a whole cross
section of clients from multinational corporations to hotels, corporate houses, residences,
embassies, educational institutions, industrial establishments, multinational companies, ATMs,
etc. The effect of sound management is noticeable in an organisation as the employees are happy
and satisfied.
Considering it to be the need of the hour, the company wants to introduce new system of
accounting. Initially, there is some resistance from the accounting staff but when manager
explains the purpose, provides training and motivates with additional rewards, the employees
accept the change and cooperate with him.
49. Identify any one feature of management discussed above.

SAMPLE PAPER 8
(a) Management is goal oriented

(b) Management is multidimensional
(c) Management is intangible
(d) Management is a group activity
50. Identify the type of objective of management not discussed above.

(a) Organisational (b) Personal
(c) Social (d) All of these
51. Identify the level of management which does not interact with the work force directly.
(a) Supervisory management (b) Operational management
(c) First line managers (d) Middle level management
52. Identify the related function of management which has helped the company to
introduce changes in the organisation.
(a) Planning (b) Directing
(c) Controlling (d) Organising
53. “Considering it to be the need of the hour, the company wants to introduce new
system of accounting.” Which feature of management is highlighted in the given lines?
(a) Continuous process (b) Dynamic function
(c) Goal oriented (d) Pervasive
54. “But when manager explains the purpose, provides training and motivates with
additional rewards, the employees accept the change and cooperate with him.” Which
importance of management is highlighted in the above lines?
(a) Management improves efficiency
(b) Management helps in achieving personal objectives
(c) Management helps in developing society
55. ‘Neerja Milk Producer Pvt. Ltd.’ was established to produce tasty and nutritious dry
milk for small children. The company gave its product the brand name ‘Mother’s
Love’. The company publicised its product very much and produced the goods of
supreme quality. Being impressed by the quality of the product, the people purchased
the ‘Mother’s Love’ brand in no time. Here one particular thing was that the company
had lain its full emphasis on the packaging of their product. On the milk box were
written the ‘instructions of use’. Besides, it was also written that ‘mother’s milk is the
best’. To write this was the legal requirement. The company was very much successful
and within a days, it became the leader in its industry. Which ‘dimension of the
business environment’ is perceived from the event quoted above?
(a) Technological environment (b) Political environment
(c) Legal environment (d) Economic environment
56. In order to improve upon its competitive edge, Khushboo Limited has changed the
packaging of its hair care products. They are now available in a consumer friendly
design, which has a nozzle attached to the lid so that at the time of usage, the
consumer doesn’t need to open the cap of the bottle. Name the marketing function
being explained in the given lines.
(a) Product designing and development (b) Customer support services
SAMPLE PAPER 8
57. Drishti Limited is a chain of trusted optical centers for prescription and fashion eyewear.
In order to raise the level of buyers’ satisfaction, the company has decided to caters to
affluent people with a range of premium sunglasses for men, women and create a special
section in each of its outlets for handling customer complaints and adjustment
requirements. Identify the type of marketing function described in the given lines.
(a) Product designing and development (b) Customer support services
58. Mr. Sanjiv Gupta decided to double the production of his company. Now he is going to
translate his decision into reality. Here, he is also thinking how many additional/extra
machines and workers will be required to achieve the production target. His dream
will be possible to be realised only after the arrangement for these extra sources are
done.
Which step of ‘planning process’, Mr. Gupta is going to start in the above event?
(a) Evaluating alternative courses
(b) Selecting an alternative
(c) Implementing the plan
(d) Follow-up action
59. The production manager of Prem Ltd. instructs a salesman to give discount to
customers at the time of selling, whereas the marketing manager instructs them not to
allow any discount. Which principle of management is being violated in this case?
(a) Unity of command
(b) Unity of direction
(c) Equity
(d) Order
60. ‘We are the Best’ Public School, though is a disciplined organisation, lacks in
well-defined rules and regulations. With passage of time, the management of the
school finds out that if there are proper rules and regulations for the students and the
teachers, the result of the school will improve.
Which nature of principles of management is highlighted here?
(a) General guidelines
(b) Cause and effect relationship
(c) Universally applicability
(d) Mainly behavioural
SAMPLE PAPER 8
OMR SHEET SP 8
Roll No.
Instructions
by the software.

1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d


Answers
1. (c) 2. (c) 3. (b) 4. (b) 5. (c) 6. (d) 7. (b) 8. (b) 9. (c) 10. (d)
11. (b) 12. (b) 13. (a) 14. (c) 15. (a) 16. (a) 17. (a) 18. (a) 19. (a) 20. (b)
21. (b) 22. (a) 23. (b) 24. (a) 25. (d) 26. (d) 27. (c) 28. (b) 29. (b) 30. (b)
31. (b) 32. (c) 33. (d) 34. (b) 35. (a) 36. (d) 37. (c) 38. (d) 39. (a) 40. (c)
41. (a) 42. (c) 43. (d) 44. (a) 45. (a) 46. (d) 47. (c) 48. (c) 49. (c) 50. (c)
51. (d) 52. (b) 53. (b) 54. (b) 55. (c) 56. (a) 57. (b) 58. (c) 59. (a) 60. (b)
EXPLANATIONS
1. Akhil is both effective and efficient. 33. There should be a balance between
2. Planning is a process of thinking in advance, centralisation and decentralisation in
so there is a scope for creativity and every organisation.
innovation. The technique of ‘mental revolution’ is
6. Marketing acts as a catalyst in economic derived from the scientific principle of
development of a country and helps in raising ‘Harmony, not Discord’ given by Taylor.
living standard of the people. It helps in 34. Authority is the main key of every
ensuring smooth flow of goods through the managerial post.
efficient distribution system. It helps to
establish linkages between the business, 35. Divisional structure deals in two or more line
accelerate economic activity, leads to higher of products.
incomes, etc. 42. It involves fixing certain values or standards
8. Promotion is the element of marketing mix in quality and quantity of goods by using
and advertisement is the element of standardised equipments, materials,
promotion mix. production methods etc.
15. The immediate container is a primary packet 45. “As a result of it, the initiative and creativity
of a product like tube for shaving cream. of the managers at the middle level
18. Except public debt all other are the elements of management, gets killed.” This line shows that
social environment. Public debt affects the planning reduces creativity.
economic status of the country.
58. ‘‘Now he is going to translate his decision into
28. Business environment is dynamic where reality’’. These lines shows implementation of
changes are taking place at a fast pace. plan.
29. It involves creation of benefits for the society.
59. Unity of command means receiving order
30. The main objective of marketing philosophy is from one superior only at a time.
to earn maximum profits by satisfying the 60. Principles tells us that if a particular principle
needs of customers. is applied in a situation, what might be its
effect.
SAMPLE PAPER 8
31. Decentralisation of authority means dispersal

of authority to take decisions throughout the
organisation, upto the lower levels.
SAMPLE PAPER 9
BUSINESS STUDIES
Instructions
Maximum Marks : 40
Section A
1. To meet the objectives of the firm, the management of Angora Ltd. offers employment
to physically challenged persons. Identify the objective it is trying to achieve.
(a) Organisational objective (b) Personal objective
(c) Social objective (d) None of these
2. Planning results in decreasing ……… .

(a) coordination
(b) proper use of resource
(c) future uncertainties
(d) control
3. Under which concept the companies push for the betterment of the quality of their
SAMPLE PAPER 9
products in their efforts for marketing?

(c) Marketing concept (d) Selling concept
4. Mr. Anmol Batra is working in a well reputed company of USA. In the company, he is
responsible for all the activities of the business and for its impact on society.
Identify the management level at which he is working.
(a) Top Management (b) Middle Management
(c) Operational Management (d) None of these
5. Derivation of principles of management may be said to be a matter of ………. and their

creative application may be regarded as an …………..
(a) art, science (b) science, art
(c) art, profession (d) profession, science
6. ……… refers to producing goods of predetermined specifications, which helps in

achieving uniformity and consistency in the output.
(a) Standardisation (b) Packaging
(c) Labelling (d) Grading
7. Coordination is required at all levels of management due to the interdependent nature

of activities of various departments, thus it is a ……… function of management.
(a) continuous (b) pervasive
(c) multi-dimensional (d) independent
8. Which component of product mix provides status symbol as the advantage to

customer?
(a) Labelling (b) Branding
(c) Packaging (d) None of these
9. Inter departmental conflicts are one of the disadvantages of ……… structure.

(a) functional (b) divisional
10. Planning instructs business organisations to follow a certain methodology. If there is a

deviation in the plan, there is a possibility of loss. Which one of the following
limitations is indicated here?
(a) Reduces creativity
(b) Lack of flexibility
(c) May not work in dynamic environment
(d) Does not provide guarantee to success
11. ……… type of organisational structure facilitates occupational specialisation.

(a) Functional structure (b) Horizontal structure
(c) Network structure (d) Divisional structure
12. Which of the following statements about planning is true?

(a) Planning promotes innovative ideas in rigid environment
(b) Planning promotes innovative ideas as employees are not allowed to deviate from plans
(c) Planning promotes innovative ideas as it guides all future actions
(d) Planning promotes innovative ideas as changes cannot be eliminated
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13. It is necessary that goods and services must be made available to the consumers at the
right place, in the right quality and at right time. Identify the concerned element of
marketing mix.
(a) Product mix (b) Price mix
(c) Place mix (d) Promotion mix
14. ……… is not a component of specific forces of business environment.

(a) Technological conditions (b) Customers
(c) Employees (d) Investors
Statement I Advertising is the impersonal communication in case of promotion.
Statement II Production cost is the only important component while fixing up the
price.
Alternatives
16. Top management undertakes planning for the organisation as a whole. Middle
management does the ……… planning. At the lowest level, ……… planning is done by
supervisors.
(a) operational, departmental (b) departmental, operational
(c) departmental, organisational (d) organisational, operational
17. Warehousing helps in creating ……… and transportation helps in creating ……… .
(a) place utility, time utility (b) time utility, place utility
(c) product utility, place utility (d) time utility, product utility
18. The growing awareness about technology upgradations has led to an increase in the
demand for latest technology based electronic gadgets in the country. Identify the
feature of business environment being described in the above case.
(a) Dynamic nature (b) Uncertainty
(c) Relativity (d) Inter-relatedness
19. “Management principles improve knowledge, ability and understanding of managers

under various managerial situations.” These lines indicate which importance of
principles of management?
(a) Providing managers with useful insight into reality
(b) Optimum utilisation of resources
(c) Scientific decisions
(d) Effective administration
20. Which of the following is not a feature of functional structure?

(a) It promotes functional specialisation
(b) Managerial development is difficult
(c) It is easy to fix responsibility for performance
(d) It is an economical structure to maintain
SAMPLE PAPER 9
21. A popular brand of hair conditioner comes in different categories for different hair, say
for normal hair and for other categories.
Identify the function of labelling in the above example.
(a) Providing information required by law
(b) Describe the product and specify its contents
(c) Grading of products
(d) Promotion of products
22. For Covid-19, different vaccines are developed by the Indian and foreign companies
such as covishield, covaxin, moderna, pfizer etc. Identify the dimension of the business
environment highlighted in this statement.
(c) Legal environment (d) Technological environment
23. Fast decision can be taken by using the concept of

(a) delegation (b) formal organisation
(c) decentralisation (d) None of these
24. ……… principle of management refers to taking the first step with self-motivation.
(a) Order (b) Initiative
(c) Equity (d) Unity of direction
Section B
25. After obtaining the Post Graduate degree in the subject of ‘Business Environment’, Mr.
Saksham Miglani was appointed as the manager in a company. He noticed that the
market changes taking place very fast were having a negative impact on the company.
Taking advantage of his academic ability, he made a thorough study of the business
environment. Based on his study, he prepared a formula to cope with the rapid
changes taking place. Within no time, the negative impact on the company of the
changes taking place disappeared. Now, the company is running successfully.
Identify the point of importance of the business environment highlighted in the above
event.
(a) It helps the firm in identifying the threats and early warning signals.
(b) It enables the firm in identifying opportunities and getting the first mover advantage.
(c) It helps in tapping useful resources.
(d) It helps in coping with rapid changes.
26. The plans are made by the ……… are implemented by rest of the members.
(a) top management (b) middle management
(c) lower management (d) operational management
27. Advertising creates a ……… and not a ……… .

(a) monologue, dialogue (b) dialogue, monologue
(b) soliloquy, dialogue (d) monologue, soliloquy
28. Assertion (A) Reserve Bank of India is the key regulator of county’s economic
environment.
SAMPLE PAPER 9
Reason (R) Economic environment includes the social forces like customs and
traditions.
Alternatives
of Assertion (A)
29. An industry’s target production is 1,000 units in a year. To achieve this target the
manager has to operate on double shifts due to power failure most of the time. The
manager is able to produce 1,000 units but at a higher production cost.
In the above case, tell the status of the manager.
(a) Manager was effective as well as efficient (b) Manager was effective but not efficient
(c) Manager was efficient but not effective (d) None of these
30. Which of the following is not part of organising process?
(a) Grouping of activities (b) Departmentalisation
(c) Complete centralisation (d) None of these
31. All professionals are bound by a ……… which guides the behaviour of its members.
(a) rules (b) guidelines (c) behaviour (d) code of conduct
32. ……… is delegated, ……… is assumed and ……… is imposed.
(a) Authority, accountability and responsibility
(b) Responsibility, accountability and authority
(c) Authority, responsibility and accountability
(d) Accountability, responsibility and authority
33. A manager should replace ……… with ……… in all his conversations with workers to
foster team spirit.
(a) You, We (b) We, You (c) I, We (d) We, I
34. Assertion (A) As an organisation grows in size and complexity, there is tendency to
move towards decentralised decision-making. Complete centralisation would imply
concentration of all decision-making functions at the apex of the management
hierarchy.
Reason (R) A large sized organisation can be totally decentralised.
Alternatives
of Assertion (A)
35. Assertion (A) Every manager has his/her own unique style of managing things and
people, despite learning same management theories and principles.
Reason (R) Just like art, management is based on practice and creativity.
Alternatives
SAMPLE PAPER 9

of Assertion (A)
Statement I Planning is not a solution to all problems.
Statement II Planning is a physical activity of thinking rather than doing.
Alternatives
37. Suhasini plans her winter collection in the month of June itself. She has to then ensure
that there is adequate workforce and continuously monitor whether production is
proceeding according to plans. Her marketing department also has to be briefed in
time to prepare their promotional and advertising campaigns.
Identify the characteristic of coordination to which the above case is related.
(a) Coordination is an all pervasive function
(b) Coordination is a deliberate function
(c) Coordination is a continuous process
(d) Coordination ensures unity of action
38. Lakshay has been given the task of arranging for five-day conference for foreign
delegates. In order to ensure smooth functioning of the event, he has made two
people as co-ordinators to take care of activities related to registration and
refreshment. Identify the function of management being carried out by Lakshay.
(a) Planning (b) Staffing
(c) Organising (d) Directing
39. Personal objectives are related with satisfying the personal needs of the employees.
Management must seek to satisfy the diverse needs of employees like
(a) financial needs, by giving competitive salary and perks
(b) social needs, by peer recognition
(c) higher level needs, by providing opportunities for personal growth and development
40. Fabmart is a private limited company with several branches all over the country. It
needs a team of designers and crafts people. Similarly, another company Infosys
Technologies which develops software needs systems analysts and programmers.
Identify that which function of management is needed to satisfy the need of the above
companies.
(c) Staffing (d) Controlling
41. Mr. Ankit is working as a manager in ‘Nandini Designer Candles Ltd.’ For Diwali
festival his company wants to launch a unique variety of candles. Arrange the
SAMPLE PAPER 9
following activities of Mr. Ankit regarding this in the correct sequence.

(i) He recruits more skilled artistic workers
(ii) He determines what activities and resources are required
(iii) He plans a special festive collection for Diwali
(iv) He ensures that deadlines regarding delivery of goods are met
Codes
(a) (i); (ii); (iv); (iii) (b) (iii); (ii); (i); (iv)
(c) (iii); (ii); (iv); (i) (d) (ii); (iii); (i); (iv)
Statement I Under functional foremanship, the job of a foreman was divided into
four parts.
Statement II Motion study focuses on eliminating unnecessary movements of workers.
Alternatives
(b) Statement II is correct and statement I is incorrect
43. Which of the following is not a demerit of functional structure?

(a) It places more emphasise on the objectives pursued by a functional head than on overall
enterprise objectives.
(b) It may lead to conflict of interests among departments due to varied interests.
(c) It leads to occupational specialisation.
(d) It may lead to difficulty in co-ordination among functionally differentiated departments.
44. The sales department accuses the production department for the poor sales due to late
delivery of goods. The production department accuses the purchase department for
not delivering the raw material in time and the purchase department accuses the
finance department for not releasing funds on time. Which quality of management is
missing in the above situation?
(a) Planning (b) Management
(c) Coordination (d) None of these
45. Miss Komal Gupta is employed at the middle level management in ‘Rakshak
Medicines Ltd.’ In order to achieve the objectives of the company, with several attempts
and the opinion of specialists, a plan was prepared. When the plan was actually
implemented, Miss Gupta saw that the actual work did not match with the plan. This
matter made her very much worried, lest the whole labour in preparing the plan
should not go waste. Therefore, immediately she reported this matter to the officer
concerned.
Identify in the above event which step of the ‘planning process’ is Miss Gupta acting
upon?
(a) Evaluating alternative courses (b) Selecting an alternative
(c) Implementing the plan (d) Follow-up action
46. A company wants to differentiate between its efficient and inefficient workers. For the
same, it is determined that standard output per worker per day is 8 units and those
who made standard or more than standard will get `50 per unit and those below will
get `40 per unit. Now an efficient worker making 9 units will get 9 × 50 = `450 per day
SAMPLE PAPER 9
whereas a worker who makes 7 units will get 7 × 40 = `280 per day.
Identify the technique of scientific management highlighted in the above case.
(a) Differential piece wage system (b) Method study
(c) Time study (d) Fatigue study
47. In many organisations, the top management plays an active role in taking all decisions
while there are others in which this power is given to even the lower levels of
management. Decision-making authority is shared with lower levels and is
consequently placed nearest to the points of action.
Identify the concept of management highlighted by the phrase. “Decision-making

authority is shared with lower levels and is consequently placed nearest to the points
of action.”
(a) Authority (b) Accountability
(c) Delegation (d) Decentralisation
48. Mr. Ram is the C.E.O. in ‘Ram Lakhan General Pvt. Ltd.’ He is the head of the team
making plans for the company also. He gave a number of suggestions to the team out
of which the two main suggestions were: First, Mr. Ram said that they had to face a lot
of problem in getting the main raw material used in the company, but in the next year
it was possible that they could get it easily. Secondly, in the second coming year the
rate of bank interest was most likely to increase, which would affect the company’s
costs. He laid emphasis on this matter that both of his remarks should be kept in view
while preparing the plans. Clarify to which stage of the planning process the above
event is related.
Section C
Direction Read the case study given below and answer the question number 49-54 on the basis of the some.
The Marketing Manager, Mr. Kasim Ahmed of ‘Singh and Singh Pvt. Ltd’ was not satisfied with
the marketing philosophy implemented in his company. He examined several marketing
philosophies, one after the other.
First of all, he prepared a large-scale production plan. He believed that several economies would
be obtained from the large-scale production. It would reduce the cost per unit and by fixing a
balanced price, he would be able to attract customers to his side. But such a thing did not
happen. Afterwards, he changed his thinking. His new thinking was that he would be able to
attract customers when the emphasis of the company shifted from quantity of production to
quality of products. But again, it did not serve the purpose.
Afterwards, Mr. Ahmed again changed his thinking. Now the basis of his thinking was that
‘Goods are not bought but they have to be sold’. In order to give a practical shape to this thinking
took the help of aggressive selling techniques, but once again it did not serve the purpose.
Finally, he focused his attention on ‘Consumer satisfaction and social welfare’. This marketing
philosophy gave him full success.
49. Identify the marketing philosophy under which the emphasis is laid on large-scale
production?
(a) Production philosophy (b) Product philosophy
(c) Selling philosophy (d) Social marketing philosophy
SAMPLE PAPER 9
50. Identify the marketing philosophy out of the following which contains the essence of
quality production?
(c) Selling philosophy (d) Societal marketing philosophy
51. Identify the marketing philosophy in which the use of aggressive selling techniques are
used?
(c) Selling philosophy (d) Societal marketing philosophy
52. Last of all, the Marketing Manager focused his attention on ‘Consumer satisfaction and
social welfare’ and he succeeded. Identify the marketing philosophy used here.
(a) Marketing philosophy (b) Selling philosophy
(c) Societal Marketing philosophy (d) None of these
53. Identify the marketing philosophy not tested by Mr. Ahmed in the given case.
(a) Production philosophy (b) Marketing philosophy
(c) Selling philosophy (d) None of these
Statement I Production philosophy focused on quality of products.
Statement II Marketing philosophy focused on consumer satisfaction.
Alternatives
(b) Statement II is correct and statement I is incorrect
55. Trapti Food Ltd. is a well-known ground-nut producing company. The sales have been
falling down from the beginning of the year. The managing director Mr. Bhuvan is
worried about this situation. With a view to find out the solution of this problem, he
made a team to find out the reasons for downfall of sales. The team conducted the
survey and found that, due to availability of other eatable substitutes, the taste of
people is diverted from ground-nut. Identify the dimension of business environment
discussed in the above case.
(c) Political environment (d) Technological environment
56. A management expert was invited by ‘Raghav Ltd.’. He gave a lecture in the meeting
of employees on the importance of organising function of management. He said that
during this function the establishment of working relationships clarifies lines of
communication and specifies who is to report whom. This removes ambiguity in
transfer of information and instructions. It helps in creating a hierarchical order
thereby enabling the fixation of responsibility and specification of the extent of
authority to be exercised by an individual.
Identify the point of importance of organising highlighted in the above case.
(a) Benefit of specialisation
(c) Clarity in working relationships
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(d) Development of personnel
57. Some friends joined together and set up a multi-product company. Their company
makes four different products. Three products of the company have been successfully
launched in market. But the company has not succeeded to launch the fourth product
in market. What sort of organisational structure, in your view, might have been
adopted by the company?
(a) Divisional organisation structure (b) Functional organisation structure
58. “In financial plans, the risk-return trade-off is very common. The more risky the
investment, the higher the returns it is likely to give. To evaluate such proposals,
detailed calculations of earnings, earnings per share, interest, taxes and dividends are
made and then decisions are taken.” Identify the step of planning function of
management highlighted above.
59. The employees of Alfa Ltd. deserve fair and just remuneration. But what is just and fair
is determined by multiple factors. They include contribution of the employee, paying
capacity of the employer and also prevailing wage rate for the occupation under
consideration.
Identify the ‘feature of principles of management’ to which the above case is related.
(a) Contingent (b) General guidelines
(c) Formed by practice and experimentation (d) Flexible
60. Once there was a meeting of top level management of Anvi and Aaru Ltd. In the
meeting, it was decided that the management should not close its ears to any
constructive suggestions made by the employees. They should be rewarded for their
suggestions which results in substantial reduction in costs. They should be part of
management and if any important decisions are taken, workers should be taken into
confidence.
Identify the principle of scientific management to which the above case is related.
(a) Cooperation, not individualism
(b) Science not rule of thumb
(c) Harmony, not discord
(d) Development of each and every person to his or her greatest efficiency and prosperity
SAMPLE PAPER 9
OMR SHEET SP 9
Roll No.
Instructions
by the software.

1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d


Answers
1. (c) 2. (c) 3. (b) 4. (a) 5. (b) 6. (a) 7. (b) 8. (b) 9. (a) 10. (b)
11. (a) 12. (c) 13. (c) 14. (a) 15. (a) 16. (b) 17. (b) 18. (d) 19. (a) 20. (c)
21. (c) 22. (d) 23. (c) 24. (b) 25. (d) 26. (a) 27. (a) 28. (b) 29. (b) 30. (c)
31. (d) 32. (c) 33. (c) 34. (b) 35. (c) 36. (a) 37. (c) 38. (c) 39. (d) 40. (c)
41. (b) 42. (b) 43. (c) 44. (c) 45. (d) 46. (a) 47. (d) 48. (b) 49. (a) 50. (b)
51. (c) 52. (c) 53. (b) 54. (b) 55. (b) 56. (c) 57. (a) 58. (d) 59. (a) 60. (a)
EXPLANATIONS
14. Technological environment is a component of 44. There is no coordination between different

general forces. departments.
15. There are many other factors considered while 45. In the above case, Miss Gupta is acting upon
deciding a price of the product. taking feedback and implementing corrective
28. Economic environment includes rules and actions to improve the situation.
regulations made by economic authority of 54. Production philosophy focussed on quantity
country like interest rates, inflation etc. of product and product philosophy focussed
34. Every organisation has a balance between on quality of product.
centralisation and decentralisation, no 56. It helps in creating well defined jobs and also
organisation is completely centralised and clarifying the limits of authority and
completely decentralised. responsibility of each job.
36. Planning is not a physical activity, rather it is The superior-subordinate relationship is
an intellectual activity. clearly defined in organising.
39. The satisfaction of personal objectives of 57. They deal in different line of products.
individuals is necessary, as only satisfied 59. Application of any principle depends upon
employees will help to achieve the the nature of organisation and prevailing
organisational goals. situations.
40. In this situation, there is a need of employees 60. In this case, management hears the
which is fulfilled by following the process of suggestions of employees and even
staffing. rewarding them for better suggestions.
42. Under functional foremanship, the job of a
foreman was divided into eight parts.
SAMPLE PAPER 9
SAMPLE PAPER 10
BUSINESS STUDIES
Instructions
Maximum Marks : 40
Section A
1. ……… objectives of management consistently creates economic values for various
sections of society.
(a) Organisational (b) Social
(c) Personal (d) Both Social and Personal
2. Planning ensures that the goals or objectives are clearly stated so that they act as a
guide for deciding what action should be taken and in which ……… .
(a) position (b) direction (c) alternative (d) option
3. Timex watch manufacturing company is a renowned company. It performs various
activities like, market analysis, product designing or merchandising, packaging,
warehousing, branding, pricing, promotion and selling. The company maintains good
customer relations through various followup activities. This helps the company in
procuring repeat sales orders.
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Name the concept related to the activities mentioned in the above paragraph.
(a) Selling (b) Marketing (c) Production (d) Promotion
4. ……… level of management passes on the instructions of management to the workers.
(a) Top (b) Middle (c) Supervisory (d) None of these
5. According to the principle of ………, all units of an organisation should be moving
towards the same objective through coordinated efforts.
(a) unity of direction (b) unity of command
(b) discipline (d) initiative
6. The societal marketing concept is the extension of the marketing concept, apart from
the customer satisfaction, it pays attention to the social, … and … aspects of marketing.
(a) ethical and legal (b) ethical and ecological
(c) legal and ecological (d) personal and ecological
7. Which of the following is the function of low level management?

(a) To interact with the actual work force and pass on instructions of the middle
management to the workers.
(b) To scan the business environment and its implications for the survival of the firm.
(c) To be responsible for implementing and controlling plans and strategies developed by
top management.
(d) To integrate diverse elements and coordinate the activities of different departments.
8. ............ is the process of classification of products into different groups, on the basis of
some of its important characteristics such as quality, size, etc.
(b) Marketing planning
(c) Standardising (d) Grading
9. The organisation in which decision-making authority lies with the .............. are termed
as centralised organisations whereas those in which such authority is shared with
.............. are decentralised organisations.
(a) top level management, middle level management
(b) lower level management, middle level management
(c) top level management, lower level management
(d) middle level management, lower level management
10. After completing a diploma in Bakery and Patisserie, Payal sets up a small outlet at
Goa airport to provide a healthy food option to the travelers. To begin with, she has
decided to sell five types of patties, three types of pizzas and low sugar muffins in four
flavours. Thus, by deciding in advance what to do and how to do, she is able to reduce
the risk of uncertainty and avoid overlapping and wasteful activities. But sometimes,
her planning does not work due to some unavoidable circumstances like cancellation
of flights due to bad weather conditions, government alert etc. which adversely affects
her clients. In context of the above case, identify one of the limitations of planning
which adversely affects Payal‘s business.
(a) Planning reduces creativity (b) Planning may not guarantee success
(c) Planning may not work in dynamic environment
(d) Planning involves huge cost
11. Accountability refers to .................. for the outcome of the assigned task.
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(a) power (b) right

(c) responsibility (d) answerability
12. Competition in the market can also upset financial plans as sales targets have to be
revised accordingly and cash budget also needed to be modified. Identify the
limitation of planning.
(a) Planning may not work in dynamic environment
(b) Planning leads to rigidity
(c) Planning is time consuming (d) Planning involves decision-making
Statement I Carton refers to the product’s immediate container.
Statement II Secondary package refers to additional layers of protection that are kept
till the product is ready for use.
Alternatives
14. By being aware of the changes in business environment, enterprises can identify ………
and strategise ways to capitalise on them.
(a) opportunities (b) threats
(c) warning signals (d) political forces
15. ‘Products are not purchased but sold’, with which point of view is this statement
associated?
(a) Product concept (b) Selling concept
(c) Production concept (d) Marketing concept
16. If ............ factor is not taken into consideration, conditions in the environment may
change and all business plans may go waste.
(a) place (b) time
(c) thinking (d) other
17. Folk Ltd. is a leather bags manufacturing company. The company is using prohibited
animal skin to make leather bags, in order to satisfy some of its customers. Which
marketing concept is being violated in the given case?
(a) Product concept
(b) Production concept
(c) Societal marketing concept
(d) Marketing concept
18. In order to boost and double India’s export of goods and services to over USD 1,000
billion by 2025, it is important to lower effective corporate tax rate, bring down cost of
capital and simplify regulatory and tax framework. Identify the related dimension of
business environment.
(a) Social dimension and legal dimension
(b) Technological dimension and political dimension
(c) Political dimension and social dimension
SAMPLE PAPER 10
(d) Economic dimension and legal dimension
19. The principles of management enhance the understanding of the relationship between
human and material resources for the achievement of organisational goals. Identify the
feature of the principles of management being described in the given statement.
(a) Cause and effect relationships
(b) Optimum utilisation of resources and effective administration
(c) Formed by practice and experimentation
(d) Mainly behavioural
20. Twelve students work for the school library in the summer vacations. One afternoon,
they are told to unload a shipment of new releases and stock the bookshelves. One
student supervises the work by grouping students, dividing the work, assigning each
group their quota and developing reporting relationships among them. Which function
of management is highlighted in aforesaid situation?
(a) Staffing (b) Controlling
(c) Directing (d) Organising
21. The company can draw attention to new products by arranging sports and cultural
events is called
(a) Advertising (b) Public relation
(c) Sale promotion (d) None of these
22. It may be difficult to know the extent of the relative impact of the social, economic,
political, legal and technological factors on change in demand for product in the
market. Identify the relevant feature of business environment being discussed above.
(a) Dynamic (b) Complex
(c) Relativity (d) Uncertainty
23. Himsagar Beverages Ltd., is engaged in manufacturing of tetra packed fruit juices. The
target of the organisation is to manufacture 5,000 units in a day. The structure adopted
by Himsagar Beverages Ltd., helps in increasing managerial and operational efficiency.
Which type of organisation is adopted by Himsagar Beverages Ltd. in the aforesaid
situation?
(a) Decentralised organisation (b) Divisional organisation
(c) Functional organisation (d) Formal organisation
24. Which of the following statement is related to division of work?

(a) Resources should be divided equally among departments
(b) Work should be divided into smaller parts
(c) Subordinates should be divided among superiors
(d) Departments should be divided into sub sections
SECTION-B
25. ……… component of business environment resulted in the relaxation of ban imposed
on the Foreign Direct Investment?
(c) Social environment (d) Legal environment
26. An Indian information technology company, presently employing 10,000 people,

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desires to expand its business in manufacturing, trading, etc. It wants to become a

global company. To achieve its objectives, it started shifting from a centralised to a
decentralised management system. Identify the management function being performed
by the company to become a decentralised company.
27. While reading the label of a pack of aluminium foil, Rohan discovered that the product
was manufactured at Hyderabad but was available for sale in many states across the
country. Identify the function of marketing which has made this possible.
(a) Warehousing
(b) Standardisation and grading
(c) Transportation
(d) Promotion
28. Assertion (A) A businessman can influence or change the components of general and
specific environment.
Reason (R) A businessman has to change his business policies according to the changes
taking place in general environment.
Alternatives
of Assertion (A)
29. Which of the following proves that management is not an exact science?
(a) Management has its own theory and principles that have developed over a period of
time, but it also draws on other disciplines such as economics, sociology, psychology and
mathematics. Like any other organised activity, management has its own vocabulary of
terms and concepts.
(b) Since management deals with human beings and human behaviour, the outcomes of
these experiments are not capable of being accurately predicted or replicated.
(c) The application and use of principles of management is not universal. They have to be
modified according to a given situation.
(d) Both (b) and (c)
30. The public relation department advise ……… to adopt certain programmes which will
add to their public image and ensure that negative publicity does not take place at all.
(a) middle management (b) lower management
(c) top management (d) None of these
31. The process of coordinating the activities of an organisation begins at the ……… stage
itself.
(a) planning (b) staffing
(c) directing (d) controlling
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32. ……… reduces successively as we go down the corporate ladder.

(c) Accountability (d) Power
33. Simplification is ……… unnecessary varieties, sizes, and grades of product

manufactured in the organisation.
(a) dividing (b) adding
(c) eliminating (d) including
Statement I The reduction in workload by delegation is not just necessary because of
limited capacity of an individual but also allows the manager to develop new methods
and ways of performing tasks.
Statement II Organising helps in the growth and diversification of an enterprise by
enabling it to deviate from existing norms and taking up new challenges.
Alternatives
35. Assertion (A) Coordination gives a direction to the willing spirit.
Reason (R) Coordination is a voluntarily binding force between individuals and
departments.
Alternatives
of Assertion (A)
36. A diwali mela was organised in a residential colony in Delhi. After work was assigned
to each member of the welfare association, it was told that from whom he/she has to
take orders and to whom he/she will be accountable. Identify the step in organising
process being described above.
(c) Assignment of duties (d) Establishing authority relationship
37. “Every member of an organisation has a different purpose for joining the organisation
but as members of the organisation they work towards fulfilling the common
organisational goal. This requires team work and coordination of individual effort in a
common direction.”
Identify the characteristic of management highlighted above.
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function
38. Assertion (A) Tata differentiates it’s three quality of tea with three different labels (Tata
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Agni ,Tata Premium and Tata Gold).

Reason (R) Labelling helps to describe a product and specify its contents.
Alternatives
of Assertion (A)
39. “Management has to achieve variety of objectives in all areas considering the interest of all
stakeholders including shareholder, employees, customers and the government. The main
objective of any organisation should be, to utilise human and material resources to the
maximum possible advantage.” Identify the objective of management highlighted above.
40. “All the management practices are based on the same set of principles, what
distinguishes a successful manager from a less successful one is the ability to put these
principles into practice.” Identify the nature of management highlighted above.
(c) Management as a profession (d) Management is both science and art
41. Mrs. Sharma has joined a new organisation named Realistic Ltd. On her first day to
office, she analysed that there were no different departments assigned for various
product lines. She observed a separate team structure for each of them and also that
they functioned independently of one another. From her analysis, what can we make
out of the Realistic Ltd?
(a) It is a functional form of organisation
(b) Divisional structure is the way of the organisation
(c) The company follows the informal structure
(d) No observation can be made out of her analysis
Statement I Employees should be shifted from one job to another at regular intervals.
Statement II Scientific management is knowing exactly what you want your men to do
and seeing that they do it in the best and cheapest way.
Alternatives
43. ‘Gulati Saree Kendra’ is of the view that leaving the customers alone will not help.
Rather there is need to attract the customers towards it. In other words, goods are not
bought but they have to be sold. The basis of this thinking is that the customers can be
attracted. Keeping in view this thinking, companies concentrate their marketing efforts
towards educating and attracting the customers. This company is therefore of the view
to sell what you have. Identify the marketing philosophy as mentioned above.
(a) Selling philosophy (b) Product philosophy
(c) Marketing philosophy (d) Production philosophy
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44. Why management is considered a multi-faceted concept?

(a) Because management is a complex activity that has three main dimensions management
of work, management of people and management of operations.
(b) The activities involved in managing an enterprise are common to all organisations
whether economic, social or political.
(c) The process of management is a series of continuous, composite, but separate functions
(planning, organising, directing, staffing and controlling). These functions are
simultaneously performed by all the managers at all the times.
45. Arrange the following steps in the delegation process in the correct sequence.
(i) Manager shares some of his authority
(ii) Manager deliberately passes some of his responsibilities to his subordinate
(iii) Manager creates accountability
(a) (ii), (iii), (i) (b) (ii), (i), (iii)
(c) (i), (iii), (ii) (d) (iii), (i), (ii)
46. Mr. A, plant superintendent of a company is disappointed. When he was on leave he

was expecting his subordinates to take the remaining work to be finished. However he
finds a new way of dealing with this problem. He develops a system of suggestion
building from the side of workers. For this, a suggestion/complain box is to be kept
where the workers can drop their advice and hence take steps from their side.
Which principle of management has been implemented here by the plant
superintendent?
(a) Principle of order (b) Principle of initiative
(c) Discipline (d) Coordination
47. Cadbury chocolates have purple packaging on all its chocolates. Which function of
packaging is emphasised here?
(a) Protection (b) Convenience
(c) Identification (d) Innovation
48. Aayush joins an e-commerce company as a delivery executive. The Area Team Leader,
Shekhar is very happy with his performance. However, after a few months, due to
some family problems, Aayush become irregular to work and is not able to meet the
work related deadlines. As a result, Shekhar is not able to realise his team targets.
Under such a situation, which of the following statement will hold true?
(a) Shekhar can absolve himself of his accountability to the extent of work assigned to
Aayush.
(b) Shekhar cannot absolve himself of his accountability to the extent of work assigned to
Aayush.
(c) Shekhar can partly absolve himself of his accountability to the extent of work assigned to
Aayush.
SECTION-C
Z Ltd. is involved in assembling TVs. Kalu, a worker, is required to assemble 2 TVs per day. An
idea struck Kalu which would reduce the assembling time of TVs but would also reduce the cost
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of TVs. However, his supervisor shunned him and ordered him to complete work by the
suggested methods and techniques decided earlier. The company assembles 5 types of TVs and
plans very efficiently. All the work is carried at centre only. But suddenly due to pandemic,
lockdown was imposed and they couldn’t assemble TVs for 2 months, thereby causing huge
losses to the company. After the lockdown was eased, they adjusted their target as per the
human as well as non-human resources. The team considered the impact of various policy
changes towards the sector to decide the further plan of action.
49. Which function of management is discussed in the above case?

50. Which step of planning is highlighted in the lines, “After the lockdown was eased, they
adjusted their target as per the human as well as non-human resources”?
(c) Identifying alternative course of action (d) Selecting an alternative
51. Which limitation of planning is highlighted in the lines, “But suddenly due to
pandemic, lockdown was imposed and they couldn’t assemble TVs for 2 months,
thereby causing huge losses to the company”?
(a) Planning leads to rigidity (b) Planning involves huge costs
(c) Planning does not guarantee success
(d) Planning may not work in dynamic environment
52. Which step of planning is highlighted in the lines, “The team considered the impact of
various policy changes towards the sector to decide the further plan of action”?
(a) Selecting an alternative (b) Evaluating alternative courses
(c) Identifying alternative courses of action (d) Developing premises
53. Which limitation of planning is highlighted in the lines, “An idea struck Kalu which
would reduce the assembling time of TVs but would also reduce the cost of TVs.
However, his supervisor shunned him and ordered him to complete work by the
suggested methods and techniques decided earlier”?
(a) Planning leads to rigidity (b) Planning reduces creativity
(c) Planning is a time consuming process (d) Planning involves huge costs
54. Which feature of planning is highlighted in the above case?

(c) Planning is a mental exercise (d) Planning involves decision-making
55. According to the United Nations Environmental Agency, the world produces around
300 million tons of plastic each year, half of which constitutes single-use items. Ford is
recycling over one billion plastic bottles every year to develop elements of the car’s
interior, reducing the amount of plastic ending up in a landfill. The American car
maker has revealed that their Romanian-built EcoSport SUVs’ carpets are made using
470 recycled single-use plastic bottles. The process for making Ford EcoSport carpets
involves shredding bottles and their caps into tiny flakes and then heating them to
260°C. Identify the related dimension of business environment.
(a) Economic dimension (b) Social dimension
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(c) Technological dimension (d) Political dimension
56. Before buying a thing, a customer analyses its cost and the satisfaction that he is to get
from it. He will buy the thing only when he feels that its satisfaction will be more than
its cost. Seller is to make the thing while keeping in mind this tendency of the buyer. A
seller, who does not pay heed to the importance that the buyer gives to the product,
certainly lags behind in competition.
Which feature of marketing has been highlighted in the above paragraph?
(a) Customer value (b) Need and want
(c) Creating a market offring (d) Exchange mechanism
57. Malaysian budget airline group SKY Europe announced discounted fares, starting as
low as ` 1,099 for domestic destinations operated by its Indian Joint venture carrier and
` 2,099 for international flights operated by other group airline under limited offer.
Which medium of communication (Promotion mix) can be used by the firm to inform
large number of people about the new fares?
(a) Public relation
(b) Advertisement
(c) Sales promotion
(d) Personal selling
58. Shrey runs a door locks manufacturing factory. He wants to expand his business. For
this, he wants to enter into manufacturing of locks for cars such as steering lock, wheel
lock, gear lock, central car lock, etc as an ancillary company. By doing this, his
company will be able to provide many products to car manufacturers. Which type of
organisation structure will he choose for his factory?
(a) Informal structure (b) Formal structure
(c) Divisional structure (d) Functional structure
59. In today’s dynamic business environment, companies are specialising in their core
competency and divesting non- core businesses. In this context, one may cite the
decision of Hindustan Unilever Limited in divesting non-core businesses of chemicals
and seeds. Some companies are outsourcing their non-core activities like share-transfer
management and advertising to outside agencies. Even core processes such as R&D,
manufacturing and marketing are being outsourced today. Thus, the significance of
Business Process Outsourcing (BPO)and Knowledge Process Outsourcing (KPO) has
increased.
Identify the significance of principles of management highlighted above.
(a) Providing managers with useful insight into reality
(c) Meeting changing requirements
(d) Scientific decisions
60. ZETA Ltd. is a world-renowned retail chain store. The customers here are very much
pleased with the products and services provided in the stores. The customer
satisfaction and internal efficiency indicator of the organisation is rated best in the
industry. However there have been a few steps taken by the organisation which
provide the organisation this edge. The organisation has used a special type of
software which integrates all the stores and brings uniformity in its billing and
working pattern.
Which principle of scientific management is mentioned here?
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(c) Cooperation, not individualism
OMR SHEET SP 10
Roll No.
Instructions
by the software.

1 a b c d 21 a b c d 41 a b c d
2 a b c d 22 a b c d 42 a b c d
3 a b c d 23 a b c d 43 a b c d
4 a b c d 24 a b c d 44 a b c d
5 a b c d 25 a b c d 45 a b c d
6 a b c d 26 a b c d 46 a b c d
7 a b c d 27 a b c d 47 a b c d
8 a b c d 28 a b c d 48 a b c d
9 a b c d 29 a b c d 49 a b c d
10 a b c d 30 a b c d 50 a b c d
11 a b c d 31 a b c d 51 a b c d
12 a b c d 32 a b c d 52 a b c d
13 a b c d 33 a b c d 53 a b c d
14 a b c d 34 a b c d 54 a b c d
15 a b c d 35 a b c d 55 a b c d
16 a b c d 36 a b c d 56 a b c d
17 a b c d 37 a b c d 57 a b c d
18 a b c d 38 a b c d 58 a b c d
19 a b c d 39 a b c d 59 a b c d
20 a b c d 40 a b c d 60 a b c d


Answers
1. (b) 2. (b) 3. (b) 4. (c) 5. (a) 6. (b) 7. (a) 8. (d) 9. (c) 10. (c)
11. (d) 12. (a) 13. (b) 14. (a) 15. (b) 16. (b) 17. (c) 18. (d) 19. (d) 20. (d)
21. (b) 22. (b) 23. (c) 24. (b) 25. (d) 26. (b) 27. (c) 28. (c) 29. (d) 30. (c)
31. (a) 32. (a) 33. (c) 34. (c) 35. (b) 36. (d) 37. (b) 38. (c) 39. (a) 40. (b)
41. (b) 42. (b) 43. (a) 44. (a) 45. (b) 46. (b) 47. (c) 48. (b) 49. (a) 50. (a)
51. (d) 52. (d) 53. (b) 54. (a) 55. (c) 56. (a) 57. (b) 58. (c) 59. (c) 60. (b)
EXPLANATIONS
3. Marketing starts before production and 35. Coordination is not voluntary but it is a
continues even after sales. required binding force between individuals
5. This principle says that all the units of the and departments.
organisation should aim and move towards 36. Merely allocating work is not enough. Each
achieving the organisational interest. individual should also know from whom he
13. Carton is not the immediate container, but has to take orders and to whom he is
forms the part of transport packaging. accountable. It helps in coordination amongst
various departments.
16. If goods are not made available to the
customers on time, then there is no use of 40. Every manager has his own style of managing
planning. things and people.
18. Economic dimension – Lower corporate tax rate. 42. Employees should not be shifted from one job
to another at regular intervals. There should
Legal dimension – To simplify regulatory and
be stability in an organisation.
tax framework.
43. “In other words, goods are not bought but
22. It is relatively easy to understand environment
they have to be sold”. This line indicate that it
in part but it is difficult to know the relative
is a selling philosophy.
influence of a particular force.
46. “He develops a system of suggestion building
23. Functional structure deals in one product only
from the side of workers”. These lines shows
and increase managerial and operational
that it is a principle of initiative.
efficiency.
59. Meet the changing environmental
28. Every business is affected by the changes in
requirements by providing effective and
the environment and it has to make changes in
dynamic leadership in implementing changes.
its policies as per changing environment.
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As per CBSE Sample Paper

Issued On 02 Sep, 2021...

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ARIHANT PRAKASHAN (School Division Series)

Administrative & Production Offices

Sample Paper 1 37-47

Sample Paper 2 48-58

Sample Paper 3 59-70

Sample Paper 4 71-82

Sample Paper 5 83-94

Sample Paper 6 95-105

Sample Paper 7 106-116

Sample Paper 8 117-128

Sample Paper 9 129-140

Sample Paper 10 141-152

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Term MCQ Based Question Paper

Part A Principles and Functions of Management

Part B Business Finance and Marketing

Part B Business Finance and Marketing

PROJECT WORK IN BUSINESS STUDIES ONLY ONE PROJECT : GUIDELINES AS

Focus on Theory Learn to Identify Wrong Answers

Attempting MCQs in Exams

n Nature and Significance of Management

(vii) Dynamic function

organisation should strive to achieve a proper

(i) Totality of external forces (iii) It helps in tapping useful resources.

2. Importance of Organising 6. Delegation refers to the downward transfer of

(x) Physical distribution

(v) Pricing objectives

1. Nature and Significance of Management

3. Which of the following is not a dimension of management?

4. Which of the following statements is incorrect?

(c) Lower level management (d) Both (b) and (c)

6. Assertion (A) The effect of management is noticeable in an organisation where targets

8. An organisation is a collection of diverse activities and different individuals. Which

9. Identify the social objectives from the following.

Reason (R) Coordination integrates group efforts.

14. Identify the nature of management when it is practiced as personal application of

8. What is the main objective of simplification in scientific management?

(d) To eliminate unnecessary diversity of products

12. Gang plank is introduced in which principle?

2. Does study of business environment help in maintaining image in market?

3. Which of the following statements is incorrect?

4. Understanding of business environment helps the firm to identify opportunities to get

5. Assertion (A) Manufacturers have now flexible manufacturing systems.

7. ‘‘The understanding of business environment enables the firm to identify

9. Analysing process of change in the business environment involves conceptualising it as

12. Which of the following is the feature of business environment?

13. ……… is considered as the major element of political environment.

working of private sector enterprises. Identify the dimension(s) of business

3. Which of the following is correct statement?

7. “Planning is required at all levels of management as well as in all departments of the

9. Identify the correct sequence of steps in the process of planning.

2. “Organisation is the harmonious adjustment of specialised parts of the

(d) None of the above

6. ........... is the obligation to perform the assigned task.

7. Vardhman Ltd. is engaged in manufacturing travelling bags. The objective of the

9. Which of the following is an ideal situation?

(c) Authority = Responsibility

12. Identify the correct sequence of steps in the organising process.