Business Studies Term 1 2021-2022 Commerce (English Medium) Class 12 Question Paper Solution

At times, a business may concentrate on producing goods with fewer resources but cannot achieve the targeted production. In such a case, the business is said to be:

Effective but not efficient

Efficient but not effective

Both effective and efficient

Neither effective nor efficient

The process that initiates implementation of plans by clarifying jobs, working relationships and effectively deploying resources for attainment of identified and desired results is called ______.

Coordination

Management

organizing

delegation

Which marketing management philosophy lays emphasis on bringing continuous improvement in the quality of the product?

production concept

product concept

marketing concept

social marketing concept

The objective of which of the following techniques of scientific management is to determine the number of workers to be employed in an organization?

method study

motion study

time study

differential peice wage system

Which of the following is an element of political environment?

existing structure of the economy in terms of relative role of private and public sectors.

rise in the disposable income of people due to increase in the gross domestic product of a country.

legislations passed by the government authorities.

attitude of the elected government representatives towards business.

The function of marketing that involves physical movement of goods from one place to another is called ______.

promotion

transportation

storage and warehousing

customer support services

Identify the principle of management given by Fayol according to which the intent of this principle is to produce more and better work with the same effort.

division of work

unity of direction

scalar chain

equity

Which product-related decision is concerned with providing detailed information about the product on its package?

branding

packaging

labeling

both branding and packaging

Which step in the process of planning, function of management involves weighing pros and cons of each alternative? 

developing premises

identifying alternative courses of action

evaluation alternative courses

selecting an alternative 

The element of delegation which relates to the obligation of a subordinate to properly perform the assigned duty is known as ______.

authority

responsibility 

accountability

centralization

The type of organisational structure in which jobs of similar nature are grouped together on the basis of functions to form departments is called ______. 

functional structure

divisional structure

informal structure

grouped structure 

Which of the following statements correctly explains the limitation of planning 'planning does not guarantee success'? 

planning is required at all levels of management and in all the departments of the organization.

planning involves thorough examination and evaluation of available alternatives.

relying on a previously tried and tested successful plan just because it had worked before and will work again. 

by deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events.

'Product cost' as a factor affecting price determination of a product includes ______. 

cost of producing, distributing and selling the product.

utility provided by the product.

nature and degree of competition.

maximizing profit in the short run.

The concept of 'mental revolution', as prescribed by Taylor, involves, a change in the mind set of ______. 

workers towards the management.

management towards the workers.

workers and management towards one another from competition to cooperation.

customers towards the management of the organization. 

The element of marketing mix by which marketers make use of various tools of communication to encourage exchange of goods and services in the market is called ______.

branding

promotion

physical distribution

price

'Planning is an intellectual activity of thinking rather than doing'. Which feature of planning is highlighted in this statement?

planning focuses on achieving objectives.

planning is futuristic.

planning involves decision making.

planning is a mental exercise.

Which of the following activities is not considered to be part of customer support services?

after sales services.

handling customer complaints and adjustments.

procuring credit services.

identifying the needs of the customers and taking various marketing decisions. 

'The principle will give rise to a spirit of mutual trust and belongingness among team members,' which principle of management started by Fayol is highlighted by this statement?

initiative

esprit de corps 

equity

remuneration of employees

Which level of management is responsible for coordinating the activities of different departments according to overall objectives of the organization?

top level

middle level

supervisory level

both middle and supervisory level

The purpose of 'departmentalizing' in the process of 'organising' is ______.

to adapt changes in the business environment.

to facilitate specialization.

to facilitate expansion and growth of the organization without interrupting the existing operations.

to help in increasing managerial efficiency.

Which of the following options explains the 'standardisation and grading' function of marketing? 

it affects the success or failure of a product in the market.

it refers to designing and developing the package for the products.

it helps in achieving uniformity and consistency in the output and classifies products into different groups based on their size.

it reduces the need for inspection of products.

Business environment is said to be uncertain as ______.

different elements or parts of business environment are closely interrelated.

it differs from country to country.

it is difficult to predict future happenings especially when environment changes are taking place too frequently.

it consists of numerous interrelated forces which arise from different sources.

Name the concept which explains the manner in which decision making responsibilities are divided among hierarchical levels:

organizational structure

span of management

delegation

decentralization

'Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates'.

Which principle of management given by Fayol is highlighted in the above statement?

authority and responsibility

discipline

scalar chain

centralisation and decentralization

'Flavours of South' is a famous chain of South Indian restaurants. It believes in complete co-operation between the labour and management. It's management encourages the employees for their constructive suggestions. They take their employees into confidence for all important decisions.

Which principle of scientific management has been followed by 'Flavours of South'?

science, not rule of thumb

harmony, not discord

co-operation, not individualism

development of each and every person to his or her greatest efficiency and prosperity

Which of the following statements is correct with reference to 'organising' function of management? 

leads to systematic allocation of jobs and facilitates specialization.

reduces the risk of uncertainty.

helps in obtaining competent personnel.

judges accuracy of standards. 

Which of the following functions of marketing can improve performance of the product and also give it a competitive advantage in the market by attracting the target customers? 

marketing planning

product designing and development

promotion

branding

Ram Murty, a professor of Management conducted a class on 'Management Principles' and explained to his students the significance of management principles. In the next class, the professor asked his students to play roles of different managers. He gave them various situations and asked them to think like managers and provide solutions to the problems given in these situations. Each student applied the principles of management to the given situation in his own personalized manner, depending upon his creativity. 

The nature of management highlighted in the above case is:

management as a science

management as an art

management both as an art and as a science

management as a profession

Pioneer Ltd. is dealing in fruit juices and hair oils. To ensure unity of action and coordination, it has made two separate divisions for each product. Each division has its own in charge, plans and execution resources. Thus, both the divisions are moving towards the same objectives through focused efforts. 

Identify the principle of management followed by Pioneer Ltd. In the above case.

esprit de corps

equity

unity of direction

authority and responsibility

The tool of promotion which involves making use of short term incentives designed to encourage the buyers to make immediate purchase of a product or a service is called ______.

advertising

personal selling

sales promotion

public relations

"The management gives a common direction to the individual effort in achieving the overall goal of the organization." 

Which point of importance of management is highlighted in this statement? 

helps in achieving personal objectives.

helps in achieving group goals. 

helps to increase efficiency.

helps to create a dynamic organization.

"Uttam Ayurvedic Ltd." is an established Indian company manufacturing organic consumer goods like toothpastes and shampoos. It has planned to increase its market share from 30% to 40% in the current financial year.

With the expanding market of organic products, other companies in the consumer goods industry have also launched these products with organic components. The competition in the market has increased and it was found that the sales of Uttam Ayurvedic Ltd. came down and its market share was reduced to 23%.

Identify the limitation of planning highlighted in the above case:

planning may not work in dynamic environment.

planning is time consuming.

planning involves huge costs.

planning reduces overlapping and wasteful activities.

Several initiatives have been undertaken by the government of India to encourage domestic manufacturing and export of defence equipments. 'Make in India' in defence, was one such scheme launched by the government to encourage companies across the world to manufacture defence products in India. 

To which dimension of business environment does the above case relates to? 

economic environment

legal environment

political environment

social environment

Which of the following statements is true?

accountability can be entirely delegated.

accountability flows downward.

accountability refers to answerability for final outcome of the assigned task.

accountability means the right of an individual to command his subordinates.

Which of the following feature of a profession is fully satisfied by management? 

service motive

well defined body of knowledge

restricted entry

ethical code of conduct

'Agile Pvt. Ltd.' manufactures athletic footwear. Owing to its popularity among sports teams across the country, it recently decided to enter into manufacturing of sports clothing and accessories.

The type of organisational structure which is suitable for the company is: 

functional structure

divisional structure

horizontal structure

informal structure

Fayol's principle of ______ emphasises on kindliness and justice in the behaviour of managers towards workers. 

equity

discipline

esprit de corps

scalar chain

Harshita Verma has set up a factory to manufacture herbal hand sanitizer in Meerut. The size and shape of the bottles in which the products are packed are specially designed so that it should be convenient to handle and use by the consumers.

The bottles in which the sanitizer are packed is part of: 

primary packaging

secondary packaging

tertiary packaging

both secondary and tertiary packaging

'Management principles help in thoughtful decision-making. They emphasise logic rather than blind faith'. This statement describes the following point of significance of principles of management:

Fulfilling social responsibility

Scientific decisions

Meeting changing environment requirements.

Optimum utilization of resources and effective administration.

'SORT-IT Ltd.' is a leading software development company. The company is satisfying the diverse needs of its employees. Its employees are given competitive salaries and perks. They have been given chance for their personal growth and development. For harmony in the organization, management has to reconcile personal goals with organisational objectives.

Identify the objective of management being met by 'SORT-IT Ltd.'

Social

Personnel

Organisational

Both social and personnel

The step in the process of 'planning' which is concerned with putting the plan into action i.e., doing what is required is called ______.

Implementing the plan

Follow-up action

Developing premises

Selecting an alternative

"The application of principles of management is dependent upon the prevailing situation at a particular point of time". 

The above statement highlights that principles of management are: 

Flexible

Contingent

Behavioral

Universal

For the following two statements, choose the correct option:

Statement I: If the demand of a product is inelastic, the firm is in a position to fix higher prices.

Statement II: In case the degree of competition is high, the firm is in a position to set high prices.

Choose the correct option from options given below:

Statement I is correct and statement II is wrong.

Statement II is correct and statement I is wrong.

Both the statements are correct.

Both the statements are wrong.

'It acts as a binding force between departments and ensures that all action are aimed at achieving the goals of the organization'. The statement highlights the following characteristic of co-ordination: 

Co-ordination is an all-pervasive function.

Co-ordination is the responsibility of all managers.

Co-ordination is a continuous process.

Co-ordination ensures unity of action.

'While performing the organizing function, jobs are allocated to the members of each department in accordance with their skills and competencies.' 

Identify the step in the organizing function being discussed above:

Identification and division of work.

Departmentalization.

Assignment of duties.

Establishment of reporting relationships.

The function of marketing, which involves taking decisions regarding channels of distribution or marketing intermediaries, is called ______.

Physical distribution

Promotion

Warehousing

Marketing planning

The ______ technique proposed by Taylor aims at eliminating unnecessary diversity of products. 

Motion study

Standardisation and simplification of work

Differential piece wage system

Functional foremanship

Assertion (A): Delegation is a pre-requisite to the efficient functioning of an organization. 

Reasoning (R): It enables a manager to use his time on high priority activities.

Choose the correct option:

Both (A) and (R) are incorrect.

(A) is correct, but (R) is incorrect.

Both (A) and (R) are correct and (R) is the correct explanation of (A).

Both (A) and (R) are correct, but (R) is not the correct explanation of (A). 

Read the following text and answer the question on the basis of the same.

JS Printing Solutions Ltd. is a company manufacturing printers and scanners. The management of this company is known for speedy and prompt delivery of orders. As a result, the market share of this company is growing. The company grabbed a new project to supply 1,500 printers to Uprise Bank Ltd. for its various branches, within two weeks. The production manager, Ashok, made one of his efficient subordinates, Deepak, the in charge of the project and also gave him the right to command workers in order to meet the target. Now Ashok could use his time on high priority areas. He felt that this will also give an opportunity to Deepak to gain experience and develop himself for higher positions. On getting the charge, Deepak was very happy, his confidence level increased and he was encouraged to do his best to fulfill the responsibility. Considering his responsibility, Ashok kept a track of the completion of work with Deepak and he provided him the needed guidance to reach the target on time.

Identify the concept of management used by Ashok to ensure accomplishment of the new project.

functional structure

divisional structure

delegation

decentralization

Read the following text and answer the question on the basis of the same.

JS Printing Solutions Ltd. is a company manufacturing printers and scanners. The management of this company is known for speedy and prompt delivery of orders. As a result, the market share of this company is growing. The company grabbed a new project to supply 1,500 printers to Uprise Bank Ltd. for its various branches, within two weeks. The production manager, Ashok, made one of his efficient subordinates, Deepak, the in charge of the project and also gave him the right to command workers in order to meet the target. Now Ashok could use his time on high priority areas. He felt that this will also give an opportunity to Deepak to gain experience and develop himself for higher positions. On getting the charge, Deepak was very happy, his confidence level increased and he was encouraged to do his best to fulfill the responsibility. Considering his responsibility, Ashok kept a track of the completion of work with Deepak and he provided him the needed guidance to reach the target on time.

The application of the concept used above allows Ashok to use his time on high priority areas. This will lead to the organization towards ______.

adaption to change

effective management

economics of scale

reduction in conflicts among different divisions

Read the following text and answer the question on the basis of the same.

JS Printing Solutions Ltd. is a company manufacturing printers and scanners. The management of this company is known for speedy and prompt delivery of orders. As a result, the market share of this company is growing. The company grabbed a new project to supply 1,500 printers to Uprise Bank Ltd. for its various branches, within two weeks. The production manager, Ashok, made one of his efficient subordinates, Deepak, the in charge of the project and also gave him the right to command workers in order to meet the target. Now Ashok could use his time on high priority areas. He felt that this will also give an opportunity to Deepak to gain experience and develop himself for higher positions. On getting the charge, Deepak was very happy, his confidence level increased and he was encouraged to do his best to fulfill the responsibility. Considering his responsibility, Ashok kept a track of the completion of work with Deepak and he provided him the needed guidance to reach the target on time.

'On getting the charge, Deepak was very happy, his confidence level increased and he was encouraged to do his best to fulfill the responsibility given to him.'

The concept discussed above helps in ______.

departmentalization

reduction in conflicts among different divisions.

motivating the employees.

promoting control and co-ordination within a department.

Read the following text and answer the question on the basis of the same.

JS Printing Solutions Ltd. is a company manufacturing printers and scanners. The management of this company is known for speedy and prompt delivery of orders. As a result, the market share of this company is growing. The company grabbed a new project to supply 1,500 printers to Uprise Bank Ltd. for its various branches, within two weeks. The production manager, Ashok, made one of his efficient subordinates, Deepak, the in charge of the project and also gave him the right to command workers in order to meet the target. Now Ashok could use his time on high priority areas. He felt that this will also give an opportunity to Deepak to gain experience and develop himself for higher positions. On getting the charge, Deepak was very happy, his confidence level increased and he was encouraged to do his best to fulfill the responsibility. Considering his responsibility, Ashok kept a track of the completion of work with Deepak and he provided him the needed guidance to reach the target on time.

The concept discussed above provides benefits to ______.

superior only

subordinate only

both superior and subordinate

neither superior nor subordinate

Read the following text and answer the question on the basis of the same.

JS Printing Solutions Ltd. is a company manufacturing printers and scanners. The management of this company is known for speedy and prompt delivery of orders. As a result, the market share of this company is growing. The company grabbed a new project to supply 1,500 printers to Uprise Bank Ltd. for its various branches, within two weeks. The production manager, Ashok, made one of his efficient subordinates, Deepak, the in charge of the project and also gave him the right to command workers in order to meet the target. Now Ashok could use his time on high priority areas. He felt that this will also give an opportunity to Deepak to gain experience and develop himself for higher positions. On getting the charge, Deepak was very happy, his confidence level increased and he was encouraged to do his best to fulfill the responsibility. Considering his responsibility, Ashok kept a track of the completion of work with Deepak and he provided him the needed guidance to reach the target on time.

The concept discussed above helps in facilitation of growth of an organization as ______. 

the subordinate gets freedom from routine work.

duplication of effort is avoided.

the subordinate gains experience and he is in a position to take up leading positions in new ventures.

it makes training of employees easier.

Read the following text and answer the question on the basis of the same.

JS Printing Solutions Ltd. is a company manufacturing printers and scanners. The management of this company is known for speedy and prompt delivery of orders. As a result, the market share of this company is growing. The company grabbed a new project to supply 1,500 printers to Uprise Bank Ltd. for its various branches, within two weeks. The production manager, Ashok, made one of his efficient subordinates, Deepak, the in charge of the project and also gave him the right to command workers in order to meet the target. Now Ashok could use his time on high priority areas. He felt that this will also give an opportunity to Deepak to gain experience and develop himself for higher positions. On getting the charge, Deepak was very happy, his confidence level increased and he was encouraged to do his best to fulfill the responsibility. Considering his responsibility, Ashok kept a track of the completion of work with Deepak and he provided him the needed guidance to reach the target on time.

Which of the following statements is not true about the concept discussed above?

it is a process followed to share tasks.

it is necessary in all organisations.

it helps to lessen the burden of a manager.

it is a philosophy that implies selective disposal of authority.

In 'Delight Ice Creams Ltd.', decision making authority is concentrated at the top level and no authority has been delegated among the subordinates. On the other hand, in "Tasty Ice Creams Ltd.", a big organization as compared to 'Delight Ice Creams Ltd.', decision making authority is always delegated among more than one person. 

Identify the principle of management discussed above.

stability of personnel

centralisation and decentralization

authority and responsibility

scalar chain

Priya Seth, a fashion designer, has launched a new range of dresses by the name, ‘Sukriti’. To give her dresses a distinct image and to distinguish them from the competitor's products, she has designed a unique symbol with a distinct colour scheme. This symbol is available on all the labels, packaging and advertising campaigns of this new range of dresses. She has also registered this symbol to give it a legal protection against its use by other firms.

From the following, name the term used to denote the symbol designed by Priya Seth in the above case:

brand mark

trade mark

brand name

brand icon

'Safe Life Technologies Private Ltd.' is a renowned pharmaceutical company in India. It has launched a new medicine to treat high blood pressure. To create awareness about the new medicine and to build a positive image about it, the company organized a seminar, which was attended by doctors from various hospitals and dealers in medicines. During the seminar, the representatives of company discussed about the chemical composition and the functioning of the medicine.

Identify the tool of promotion used by 'Safe Life Technologies Private Ltd.' in the above case:

advertising

sales promotion

personal selling

public relations 

Ritu Kapoor has set up a bakery ‘Bakes and Cakes' in Pune. She receives online orders for cakes from within the city and supplies them on the same day. She set a target that she would earn a revenue of ₹ 5,00,000 in the first year. She informed her employees about the target and asked them to contribute ideas to achieve the same: 

Ritu Kapoor has performed the first step in the process of one of the functions of management. The next step to be performed is ______.

identifying alternative courses of action

setting objective

developing premises

follow-up action

Somesh works as a foreman in 'Lakshmi Automative Ltd.', a company manufacturing cars. He is subordinate to Ramesh, who is the production in charge in the factory. Somesh is in charge of timely and accurate completion of job by workers working in the production department. There are three other foremen who work under the production incharge, while four other foremen work under Naresh, the planning in charge in the factory. Each of the eight foremen is a specialist in his area and gives orders to the workers relating to it.

The technique of scientific management highlighted in the above case is ______. 

method study

differential piece wage system

functional foremanship

standardization and simplification of work

Vidhya Public School is a renowned school in Nagpur. The management recently appointed a new Business Studies teacher, Shweta, to teach classes XI and XII and gave her a monthly salary of ₹ 50,000. Shweta is not satisfied with it and said "the salary is not just and equitable as per the amount of work required to be done by a Business Studies teacher. Other schools in the city are paying ₹ 70,000 to their teachers teaching classes XI and XII".

Name the principle of management that has been violated by Vidhya Public School in the above case:

discipline

remuneration of employees

equity

esprit de corps