Sample QuestOn Puper 7 (for Practice) aRoshni is an employee of Gloriya Life Insurance Ltd., who gets an annual salary of R8 lakh. As per the contract of nt Roshni has a target business turnover of ti crore per month. She gets turnover 10% commission if the er exceeds 1 crore in any month. As a company policy, all the employees get medical aid and education to the children. Which of the following pay plan is highlighted above?

(a) Time based direct financial payment

(c) Time based pay plus incentives

Q.2 Higher dividend per share is associated with:

(a) high earnings, high cash flows, unstable earnings and higher growth opportunities (b) high earnings, high cash flows, stable earnings and high growth opportunities

(c) high earnings. high cash flows, stable earnings and lower growth opportunities (d) high earnings, low cash flows, stable earnings and lower growth opportunities

Q.3 Firms manage their operations with varied degrees of efficiency. Operating efficiencies may reduce the level of raw materials, finished goods and debtors resulting in lower requirement of working capital. Operating efficiency is reflected in .

(a) a higher inventory turnover ratio and a higher trade receivables turnover ratio. (b) a lower inventory turnover ratio and a lower trade receivables turnover ration.

(c)a higher inventory turnover ratio and lower trade receivables turnover ratio. (d) a lower inventory turnover ratio and a higher trade receivables turnover ratio.

Q.4 Higher working capital usually results in: (a) higher curent ratio, higher risk and higher profits (b) lower current ratio, higher risk and profits

higher equity, lower risk and lower profits (d) lower equity lower risk and higher profits Q5 Nayar is working as PG.T. Commerce in a CBSE affliated school of Kerala. One day he was teaching about capital market

in the class. He informed the class that during 1980s the capital market in India witnessed a tremendous growth because of increasing participation of the public. This ever increasing investors' population and market capitalisation led to a variety of malpractices on the part of the companies, brokers, merchant bankers, investment consultants and others involved in the securities market. These malpractices and unfair trading practices eroded investor confidence and multiplied investors grievances. The Government of India and the stock exchanges were helpless in redressing the investors' problems because of lack of proper penalry provisions in the existing legislation. In view of this the Government of India decided to set up a

regulatory body. The regulatory body which the Government of India decided to set up is (a)

(b) Performance based direct financial payment (1)

(d) Time based pay as well as performance based financial incentives

(1)

.(1)

(1)

(1) The Reserve Bank of India (RBI)

(c) National Stock Exchange (NSE) The Securities and Exchange Board of India (SEBI)

(d) Bombay Stock Exchange (BSE) (b)

Q.6 Sika Ltd., a reputed industrial machines manufacturer, needs Rupees wenty crores as additional capital to expand the business. Mr. Amit Joshi, the chief Executive Officer (CEO) of the company wants to raise funds through equity. The| finance Manager, Mr. Narender Singh, suggested that the shares may be sold to investing public through intermediaries, as the same will be less expensive. Name the method chrough which the company decided to raise additional capital. (a) Offer for sale

(1) (b) Private Placement (c) Rights Issue (d) Initial Public Offer

OR

An investor wanted to invest 20,000 in Treasury Bills for a period of91 days. When he approached the Reserve Bank (1) of India for this purpose he came to know that it was not possible.

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

(a) Treasury Bills can be issued for a minimum amount of R25,000 and its multiples thereof.

(b) Treasury Bills can be issued to financial institutions only. Treasury Bills are Zero Coupon Bonds issued by the Reserve Bank of lndia, which cannot be issued to individuals.

(d) All the above Q7 Gopal, a manager in a company, sets the targets for his subordinates without discussing it with them. He firmly tells them that if dhe task

is not completed within time, then strict action will be taken against the defaulter. Which form of lecadership is he following?

(a) (1)

Authoritarian leadership

(c) (b) Democratic/Participative leadership (d) All of these Free-rein leadership

Q.8 Which of the following statement is false?

(a) Marketing is not merely a business phenomena or confined only to business organisations.

(b) Marketing activities are equally relevant to non-profit organisations.

(c) Phvsical distribution includes the decision regarding channels ot distribution or the marketing intermediaries (like

(1)

whole salers, retailers) to be used only.

racline is particularly necessary for products which are not produced according to predetermined specifications.

Q9 Match the following and choose the correct alternative: -

) Consumers would favour those products which were widely available at an affordable price (A) Selling Conce

(B) Marketing Concept (11) Firms must undertake aggressive selling and promotional efforts to make customers (C) Production Conc

(11) Bringing continuous improvement in the quality, incorporating new features etc.

buy their products. ncept V) A pre-requisite for the success of any organisation is to understand and respond to | (D) Product Concenr customer needs. pt

(a) ) - (A), Gi) - (B), (ii) - (C), (iv) - (D) (b) ) - (D), (i) - (C), (ii) - (B), (iv) - (A)

(d) )-(B), (Gi) - (A), (ii) - (D), (iv) - (C) (c) (i)- (C),(i) - (D), (ii) - (A), (iv) - (B) Q.10 Garima Ltd. manufacturer of car engines achieves a break through by developing a car engine which runs on water. Thi development is effectively communicated by the company to its dealers and prospective customers. Because of this bresb through the image of the company has gone up. The company has also set-up a department that advises its top managemens to adopt Such programmers which will add to its public image. Name the term that is used for this activity. (a) Advertising (1) (b) Personal selling (c) Sales promotion (d) Public relations

OR Shreemaya Hotel in Indore was facing a problem of low demand for its rooms due to off season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing Manager, Mr. Kapoor for his advice. He Suggested, that the hotel should announce an offer of 3 Days and 2 Nights hotel stay package with free breakfast and one day religious visit to Omkarehswar and Mahakaleshwar Temples. The MD liked the suggestion very much. Identify the promotional tool, which can be used by the hotel, through which large number of prospective pilgrimage tourists, all over the country and also abroad, can be reached, informed and persuaded to use the incentive. (a) Advertising (1)

(b) Personal selling (c) Sales promotion (d) Public relations Q.11 Archana is a pure vegetarian. She went to a popular food chain shop and asked for a packaged Veg- Biryani'. While

eating the same she noticed that it had some non-vegetarian content. Neither the advertisement nor the label on the| package showed that the product had non-vegetarian content. Identify the consumer right which Archana can claim for compensation as per the provisions of Consumer Protection Act, 1986.

(a) Right to safety (c) Right to consumer education

( (b) Right to seek redressal

(d) Right to be informed Q.12 As per The Consumer Protection Act, 1986 State Commission has the jurisdiction to entertain complaints where the value

of the goods or services paid as consideration along with compensation claimed is

(a) up to R20 lakhs

(c) more than 1 crore (6) more than 20 lakhs, up to RI crore (d) None of these

Read the following text and answer question no. 13-16 on the basis of the same Mahinder Agro Ltd. started a new venture for distribution of harmful and chemical free fertilizers vegetables. They conducted a| survey to find out consumer preterences for such vegetables. They found that most of the consumers were concerned about the

harmful chemicals being used in growing the vegetables. They found out that 90% of the households were searching for alternatives The company contacted a group of agricultural experts to lay down the procedure for growing the vegetables by the farmers. l hey decided to train the farmers in new technology to grow chemical free vegetables according to new innovative methods. The expers

also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest. Due o increased avwareness for health care, demand for products of Mahinder Agro Ld. increased and thus the business flourished.

Q.13 "They found that most of the consumers were concerned about the harmful chemicals being used in growing the vegeta

They found out that 90% of the households were searching for alternatives." Identify the dimension of business environt (

highlighted above.

(a) Technological Environment

Economic Environment (b) Social Environment

(c) (d) Political Environment Q.14 "They decided to train the farmers in new technology to grow chemical free vegetables according to ncw u ovative

methods." Identify the dimension of business environment highlighted above. (b) Social Environment (d) Political Environment

(a) Economic Environment

()Technological Environment Q.15 "Due to increased awareness for health care, demand for products of Mahinder Agro Ltd. increased and thus tne )

flourished." What feature/characteristic of business environment is highlighted above?

(a) Specific and general forces (b) Inter-relatedness

(c)Dynamic nature (d) Relativity

ent of Economic environment? (1)

(a) Balance of payments

and changes

(b) The nature of relationship of our country with foreign counrries

(c) Expansion of transportation and communication facilities

(d) Volume of imports and exports of different items

es in foreign exchange reserves Q.16

Which of the following is not a component

7-20 on the basis of the same:

Read the following text and answer question no. 17-2

An auto company C Ltd. CLd. is facing a problem of declining market share due to increased competition from other new and existing

in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. C Lid.

Ped that it needs to take steps immediately to improve its market standing in the future. It decided to increase sales by 10% and

assum

direction to all departments at all levels what they are expected to do to achieve the objective. The managers also made certain

needed, etc.

imprions about the future, and torecasting was made about the demand for new products, prices of machinery and equipment

For quality conscious consumers, C Limited plans to introduce new models with added features and new technological

advancements. The company has formed a team with representatives from all the levels of management. This team will brainstorm

and will determine the steps that will be adopted by the organisation for implementing the above strategy. However, it is very

difficult to assess future trends in the environment if economic policies are modified or political conditions in the country are not

stable. Intense competition in the market can also upset financial plans, then sales targets may have to be revised.

Q.17 Identify the function of management highlighted in the given case.

(a) Planning

(1)

(6) Organising (c) Directing (d) Controlling

Q.18 "It decided to increase sales by 10% and gave direction to all departments at all levels what they are expected to do to

achieve the objective. The managers also made certain assumptions about the future, and forecasting was made about the

demand for new products, prices of machinery and equipment needed." Identify the step of the function of management

identified. (1)

(a) Setting Objectives (b) Developing Premises

(d) Follow up action () Both (a) and (b)

Q.19 ..it is very difficult to assess future trends in the environment if economic policies are modified or political conditions in

the country are not stable. Intense competition in the market can also upset financial plans, then sales targets may have to

be revised." ldentify the limitation of the function of management identified as highlighted above.

(a) Planning leads to rigidity (c) Planning is a time-consuming process

Q.20 Identify the feature(s) of the function of management identified as discussed in the case.

(a) Planning is a mental exercise

Planning is pervasive

(1)

(b) Planning may not work in a dynamic environment

(d) Planning does not guarantee success

(1)

(b) Planning is futuristic

(d) All of these (c) Q.21 Fashion India Limited is a chain of ladies garments boutiques where most of the work is done manually. Due to coming

of international brands in India, the company is finding it difficult to compete on rwo fronts-finishing and embroidery

work. The production manager realised that without modern machines it would not be possible for them to survive for

long. The company purchased new hi-tech modern machines from Germany. During the production process, the manager

observed that the quality of production is not as per standard and very often production is disrupted due to break-down

of machinery. The workers get frustrated by continuous rejection of output and started showing resistance towards new

technology. To increase the efficiency of the workers, the company decided to train their workers on-the-job under the able

guidance of specialists. The workers who are able to pick the skills are promoted and made incharge of the not so trained

groups. This created positive impact and everybody became keen to learn. Suggestions from the workers are valued and

workers are encouraged to communicate freely.

ldentify any three points of importance of management highlighted in the above case by quoting the lines. (3)

OR

H. Tech Ltd. is a company producing IT services. The company's profits are enough for the survival and growth. The

management of the company believes that a satistied employee creates a satisfied customer, who in turn creates profits

that lead to satisfied shareholders. So, it pays competitive salaries and perks to all its employees. All the employees are

happy working in the organisation because of personal Browth and development. The company has a strong sense of social

responsibility. It has set up an engineering college in wnicn Oncthird of the studcnts are girls to whom the company gives

50% scholarship. Is the management of H. Tech Ltd. fulfilling its objectives: Justiy your answer by quoting the lines from the above.

0.22. Mr. Sanjeev, a manager believes that through principics Or management do not provide strait jacket solutions to all managerial problems, yet they cannot be undercst ed oeea d Smalguideline helps to solve a given problem. Mr.

(3)

Sanjcev, in dealing with a situation of conflict between rwo departments, always emphasizes the primacy of the .

of the organisation.

(a) ldentify and explain the principles of management followed by Mr. Sanjeev.

(b) ldentify and state the characteristic of principles of management highlighted above.

Q.23 Kaul Consultants have launched www.naukaripao.com exelusively for senior management professionals. The poral i. senior level jobs and ensures that the job is genuine through rigorous screening process.

(a) State the source and method of recruitment highlighted in the case above.

(b) State two benefits of the above identified source of recruitment.

the overall goals

3) al lists out

(3) Q.24 Sadaf is the Chief Executive Officer of a reputed company. She introduced appropriate skill development programme and a sound promotion policy for the employees of her company. to motivate and retain the best talent in the comna she designed the jobs of the managers to include greater variety of work content. ldentily and explain the two incentive introduced by Sadaf to motivate the employees of her company.

mes

any, es

(3) OR

Mr. Hitesh kapoor, the factory manager of an organisation manufacturing mobile phone covers is responsible for the production on time to meet the the increased demand of customers during Diwali season.

(a) Which leadership style should Mr. Hitesh use? Explain. (b) State any rwo benefits of using such leadership style in the given situation.

Q.25 Alliance Ltd. is engaged in manufacturing plastic buckets. The objective of the company is to manutacture 100 buckets a day. To achieve this, the efforts of all departments are coordinated and interlinked and authority-responsibility relationship is established among various job positions. There is clarity on who is to report to whom. Explain the steps involved in the process of the function of management described above.

Q.26 Resolutions Pvt. Ltd. is a publishing company. Its book on Business Studies for class XII is in great demand. As a result, the employees in the marketing department are always racing against time. The employees have to work overtime and on holidays to cater to the demand. Managers in the marketing department are under stress as they have to handle more than two territories. The work stress has led to dissatisfaction among the employees and managers.

3)

(4)

(a) Name and explain the step of staffing process which has not been performed properly. (b) State the next two stages immediately following the step identified in part (a). Q.27 M.R. Sarthi, the Ex-chairman of Swadesh Ltd, built up his successor before retiring. Following the norms set up by himself,| he handed over the reins of the company to the co-founder Mr. Shravan, who had the potential to bring about change in the behaviour of others. Name the concept of management which was the reason why Mr. Sarthi chose Mr. Shravan to be his successor. Also, state its features.

(4)

Q.28 K&K Co. Ltd. is engaged in manufacturing machine components. The target production is 200 units daily. The company had been successfully attaining this target until rwo months ago. Over the last few months it has been observed that daily production varies between 150-170 units. Identily the possible causes for the decline in production and the steps to be taken to achieve the desired targets. (4) OR

D&D Ltd. is a large manufacturing unit. Recently, the company has conducted the time' and 'motion studies and concluded that on an average a worker could produce 120 units per day. However, it has been noticed that average daily production of a worker is in the range of 80-90 units. Which function of management is needed to ensure that the actual performance is in accordance with the performance as per 'time' and 'motion studies? State three features of this function of management. (4) Q.29 Ramanath Ltd. is dealing in import of organic food items in bulk. The company sells the items in smaller quantities in attractive packages. Performance of the company has been up to the expectations in the past. Keeping up with the latc packaging technology, the conmpany decided to upgrade its machinery. For this, the Finance Manager of the company, Mr. Vikrant Dhull, estimated the amount of funds required and the Timings. This will help the company in linking tne investment and the financing decisions on a continuous basis. Therefore, Mr. Vikrant Dhull began with the preparation of a sales forecast for the next four years. He also collecte relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability o funds from the internal sources. For the remaining funds he is trying to find out alternative sources. ldentify the financial concept discussed in the above paragraph. Also state any three points of importance of the finan ncial

(4) concept, so identified.

OR S Ltd. is manufacturing steel at its plant in India. It is enjoying a buoyant demand for its products as economic grow

wth is

CDA

dematnd for stecl is growing. The company has decided to set up a new steel plant to cash on the imated that it will require about K2000 crore to set up and about ? 500 crore of working capital

about

7%-8% and h

increase

demand. t is es

to start

thc new plant

kdentily the decision taken by the fin

l xolain any three factors affecting the fixed capital requirements of S Ltd.

finance manager in the above case.

(4)

eiorht reducing electric machine advertisement on the television. He purchased it and decided to use it.

nt he plugged the machine he got an electric shock. As a result he died instantly. His relatives suggested Vedant, .30

Sudhanshu saw a weight reducing electric machine advertisement

Sudhanshus son to file a casc claiming compensation of 50 lakh.

a) Who can file a case against the company?

(b) Where should the complaint be filed and why?

aiat ioincd as a CEO of Bharat Ltd, a firm manufacturing Computer hardware. On the first day he addressed the

employecs. He said that he believed that a good company should have an employee suggestion system and he wished to

minimise employee turnover to maintain organisational etficiency. He informed all employees that he would ensure that all

agreements were clear, fair and there was judicious application of penalties.

However, he said that he believed that lazy personnel should be dealt sternly to send the message that everyone was equal

in the eyes of management. Also, that he would want to promote a team spirit of unity and harmony among employees,

which would give rise to a spirit of mutual trust and belongingness among team members and eventually minimise need for

using penalties. He told all present that the interests of the organisation should take priority over the interests of any one

individual employee. ldentify and briefly explain the principles of management given by Fayol, which Rajat highlighted in

his address to the employees.

Q.32 (a) "Delegation does not mean abdication." Do you agree? Give reasons in support of your answer.

(b) Can a large sized organisation be totally centralised of decentralised? Give your opinion.

Q.33 Lalita wants to buy shares of Akbar Enterprises, through her broker Kushvinder. She has a Demat Account and a bank

account for cash transactions in the securities market. Discuss the subsequent steps involved in the screen-based trading for

buying and selling of securities in this case.

(4)

(6)

(6)

(6)

OR

Radhika gor 10, 00,000 rupees after selling her parental property which she had got as a gift from her grandmother. Her

friend advised her to invest in securities in the stock market. Radhika was unaware of the procedure for the same. Her friend

introduced her to a stock broker, who was registered with the National Stock Exchange. Radhika approached the broker.

The broker guided her to open a DEMAT account with a Depository, as well as a Bank account. Radhika opened a Bank

account & DEMAT account with Exin Bank.

(a) ldentify the steps in the trading procedure for buying and selling of securities which have been discussed above.

(6) State the next four steps of the trading procedure. Marking Scheme (6)

Q.34 Rasika Ltd. is a company which produces a variety of juices. A profitable business opportunity is seen by it in the field of

producing soft drinks. The marketing manager of the company, Piyush Rustogi has to take several decisions, to achieve

marketing success, such as:

Whether the drink will be packed in glass bottles or plastic can What will be the name (brand name) of the drink;

At what price it will be sold, i.e. at par with the price at which other competitive brands are sold or below it or above it;

What distribution network will be used to make the product available, e.g. hotels, restaurants, groceries shops, kiosks

selling cigarette, paan, etc;

Whether the new soft drinks will be promoted by putting up advertisements in newspaper or magazine or on radio

or television; or say if newspaper, whether in a local newspaper or a national daily; whether in a paper of regional

language or an English daily, etc. Explain by quoting the lines form the above para the combination of variables chosen

by the marketing manager of the company to prepare a new brand of soft drinks. (6)

OR

Identify and explain the Marketing philosophy adopted in the following cases:

(i) Mansi, a shoe manufacturer for school students, decided to maximise her profit by producing and distributing at large scale and thereby reducing the average cost of production.

(ii) Nisha, a school bag manufacturer decided to improve the product for profit maximisation and thus added a waterbottle

holder to the existing design.

(ii) Jasdeep, a dealer in school uniforms, decided to maximise his profit by using different aggressive promotional efforts. (iv) Amar is engaged in manufacturing of refrigerators. He surveyed the marker and found that customers need a refrigerator

with a separate provision of water cooler in it. He decided to launch the same refrigerator in the market. (6)

Sample Question Paper-7 1. (d) 2. (c) 3. (a) 4. (a)

6. (OR G) 7. (a) 10. OR() 11. (b)

14. (c)

18. (c)

8. (c) 12. (b) 16. (b)

20. (d)

5. (b) 9. (c)

13. (b) 17. (a)

15. (b) 19. (b)

21. The points of importance of management highlighted in the

given case are:

Management increases efficiency

"To increase the efficiency of the workers, the company decided

to train their workers on-the-job under the able guidance of specialists. »

ii) Management helps in achieving personal objectives. "The workers who are able to pick the skills are promoted and

made incharge of the not so trained groups. This created positive

impact and everybody became keen to learn.

(iii) Management creates a dynamic organisation.

"The production manager realised that without nodern

machines it woula not be possible for them to survive for

long. The company purchased new hi-tech modern machines

from Germany. OR

Yes Organisational objectives: "Profits of H. Tech Ltd. are

enough for the survival and growth.

(ii)

()

Social obiectives: H. Tech Ltd. has set up an

engineering college in which one-third of the students are girls to whom the company gives 50% scholarship.

"

ii) Personnel objectives: "..it pays competitive salaries and perks

to all its employees. All the employees are happy working in the

organisation because of personal growth and development. "

22. (a) Subordination of individual interest to general interest

(b) General guidelines 23. (a) External source of recruitment

Management consultants (b) Merits of external sources of recruitment:

Qualified Personnel Fresh Talent

The two incentives used by Sadaf to motivate the employees of

her company are:

() Career Advancement Opportunity

Wider Choice Competitive Spirit

24.

(ii) Job Enrichment (explain) OR (a) Autocratic or authoritarian leadership.

(b) Benefits: (i) To ensure increased labour productivity.

(ii) To facilitate quick decision making.

25. Organising 26. (a) Estimation of manpower requirement

(ii) Selection (b) () Recruitment

27. Leadership 28. (State any four causes of deviation and their corective action)

OR

Controlling 29. Financial Planning

OR (a) Investment decision

(b) Factors affecting fixed capital requirements of S Ltd.: Nature of_business: Since it is a steel manufacturing () company, it needs higher investment in fixed assets such as plant and machinery, etc. Therefore, its fixed capital

requirement will be larger.

(ii) Scale of operations: Since it is a large scale organisation, its fixed capital requirement is more as it needs bigger

plant, more space, etc.

30. (a) A complaint in a consumer court can be filed by Vedant,

legal heir or representative of the deceased consumer,

Sudhanshu or any registered consumers' association, etc.

(b) The complaint can be filed at the State Commission since

the amount of compensation claimed is 50 lakh (which

exceeds20 lakh does not exceed1 crore). 33. II Option: (a) The steps discussed in above para are:

) Selection of broker (i) Opening Demat account with a depository participant.

34. The combination of variables chosen by a firm to prepare its

market offering is called marketing mix. It consists of four main

elements, popularly known as four Ps of marketing. These are: (

product, (i) price; (ii) place, and (iv) Promotion. (explain)

() Production concept (ii) Product concept (iii) Selling concept (v) OR

Marketing concept (explain)