Business Studies Outside Delhi Set - 3 2023-2024 Commerce (English Medium) Class 12 Question Paper Solution

Assertion (A): Amount of Earnings is a major determinant of the decision about dividend.

Reason (R): Dividends are paid out of current and past earnings. 

Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R) is false.

Assertion (A) is false but Reason (R) is true. 

Choose the incorrect statement with respect to levels of management from the following:

Operational level management is responsible for implementing and controlling plans and strategies developed by top management.

At middle level management, managers interpret the policies framed by top management. 

At operational level management with the efforts of supervisors wastage of materials is minimised.

At top level management, managers are responsible for the welfare and survival of the organisation.

‘Merely allocating work is not enough. Each individual should also know who be has to take orders from and to whom he is accountable’.

The above statement is related to one of the steps of organising process. Identify the step from the following:

Identification and division of work

Departmentalisation

Assignment of duties

Establishing authority and reporting relationship

A multinational sweets and snacks company had been into catering business for the last many years. To add to its prospects and to grow in the long run, it wants to increase its sales volume, the number of products and capital investment. 

The organisational objective of management it seeks to achieve is ______.

Survival

Profit

Growth

Corporate Social responsibility 

Rajat was carrying on a business of manufacturing plastic disposables like plastic plates, plastic cups and plastic straws. He heard about the upcoming ban on single use plastics. He was able to identify this external environmental trend which could hinder his firm’s performance. So he took action and shifted to manufacturing the plates, cups and straws from bamboo and palm leaves. As a result, his business not only survived but was able to generate profit. 
The point of importance of Business Environment highlighted above is ______.

It enables the firm to identify opportunities and getting the first mover advantage.

It helps the firm to identify threats and early warning signals.

It helps in tapping useful resources.

It helps in assisting in planning and policy formulation.

______ is the process by which a manager synchronises the activities of different departments.

Management

Planning

Co-ordination

Directing

Lyka Ltd. launched its new range of herbal shampoos at the beginning of the year. As per legal framework, Lyka Ltd. provided the name and address of the manufacturer, the weight, manufacturing date, expiry date, maximum retail price etc. on the package and label of the herbal shampoo. 

The consumer right highlighted above is ______.

Right to choose

Right to be informed

Right to consumer education

Right to safety

______ is the step in the controlling process where standards may have to be revised in case the deviation can not be corrected through managerial action. 

Setting Performance Standards

Measurement of Actual performance

Comparing Actual Performance with standards and analysing deviations

Taking corrective action

Match the functions of Securities and Exchange Board of India given in Column - I with their headings given in Column - II:

Choose the correct alternative:

A - (ii); B - (iii); C - (i)

A - (i); B - (ii); C - (iii)

A - (iii); B - (i); C - (ii)

A - (iii); B - (ii); C - (i)

‘It is a process that allocates or directs funds available for investment into their most productive instrument opportunity’.

This is known as: 

Financial planning

Financial Intermediation

Allocative function

Capital budgeting

Statement – I: That part of a brand which can be spoken is called a brand name. 

Statement – II: That part of the brand which is given legal protection is called Trademark.  

Choose the correct option from the following:

Statement I is true and Statement II is false.

Statement II is true and Statement I is false.

Both the statements are true.

Both the statements are false.

______ is the process of holding securities in electronic form. 

Financial Intermediation

Dematerialisation

Allocative function

Mobilisation of securities 

Payal was working in a Multinational company. Her father gifted her a smart phone worth ₹ 40,500 on her birthday. The mobile phone was purchased by her father from his friend’s shop. After few months, the mobile phone started creating problems. Payal tried to contact the manufacturer many times but he did not respond. Ultimately Payal decided to file a complaint against the manufacturer. The appropriate grievance redressal machinery where Payal can file a complaint is ______.

District Forum/Commission

State Commission

National Commission

Supreme Court

Which of the following is NOT a feature of 'Directing' function of management? 

Directing initiates Action.

Directing takes place at every level of management.

Directing ensures that activities are performed as per plans.

Directing flows from top to bottom.

'Marbury biscuits' launched its new range of oat cookies in three varieties. They decided to distribute free samples of their biscuits in schools as a part of their promotional campaign. 

Identify the tool of promotion used by ‘Marbury Biscuits’:

Advertising

Personal Selling

Sales Promotion

Public Relations

Which of the following is an advantage of Informal organisation?

It provides stability to the organisation because behaviour of employees can be fairly predicted since there are specific rules to guide them.

It leads to effective accomplishment of goals by providing a framework for the operations to be performed.

It enhances the employee’s job satisfaction since it gives them a sense of belongingness in the organisation and allows them to find like minded people.

It helps in avoiding duplication of efforts as there is no ambiguity in the role that each member has to play. 

The picture given below is the package of a perfume bottle:

Identify the level of packaging of the box shown above:

Primary package

Secondary packaging

Transportation packaging

Both Primary package and Secondary packaging 

Statement – I: Business Environment is dynamic as it differs from country to country. 

Statement – II: Business Environment is largely uncertain as it is very difficult to predict future happenings.

Choose the correct option from the following: 

Statement I is true and Statement II is false.

Statement II is true and Statement I is false.

Both the statements are true.

Both the statements are false.

Which of the following is NOT a feature of demonetisation?

It leads to creation of a less-cash or cash-less (free) economy i.e. channeling more savings through the formal financial system and improving tax compliance.

It is interpreted as a shift on the part of the government indicating that tax evasion will no longer be tolerated or accepted.

It is viewed as a tax administration measure.

It led to tax administration channelising savings away from the formal financial system.

______ is the process of holding securities in electronic form. 

Financial Intermediation

Dematerialisation

Allocative function

Mobilisation of securities 

'Planning and controlling are inseparable twins of management'. Explain with the help of any three points. 

Explain 'Critical point control' as discussed in the controlling process. 

Explain 'Management by exception' as discussed in the controlling process. 

Differentiate between the Money Market and Capital Market.

Explain the following as factor affecting financing decision:

Fixed Operating Costs 

Explain the following as factor affecting financing decision:

State of Capital Market

Three friends, Aman, Ashish and Ashi after completing their MBA from a reputed management institute, formed a start up named 'Solutions'. The goal of the start up was to make a social and environmental impact through its services. 'Solutions' supports social business ideas to improve living conditions in slums of Mumbai. As all the three friends are specialised in social work, they adopted three different slums of Mumbai and started educating the slum dwellers in their own creative manner. Aman used 'playway method', Ashish used 'music' as a method of learning while Ashi used 'activity based method of learning'. They used basic knowledge in their unique manner and were able to educate the slum dwellers. 0000

It implies that skillful and personal application of acquired knowledge varies from individual to individual in achieving desired results. 

1. Identify and state the nature of management discussed in the above case.
2. Quoting lines from the above para, state any two features of nature of management identified in (a) above. 

The rapid changes having taken place in the society have created pressure on organisations to readapt its products, type of jobs required and type of skills necessary to complete these jobs. To keep up pace with the rapid changes in the business environment, 'Suzon cars', a company manufacturing automobiles for the last thirty years decided to start manufacturing electric cars with Artificial Intelligence technology. With the introduction of Artificial Intelligence, the company had to improve the knowledge and skills of its employees. They wanted that all their employees improve their performance on the current job and are prepared for any intended job in future. This way they would not only be able to increase their knowledge and skills but would also improve their performance. By doing this, the organisation too would get various benefits. 

1. Identify the concept discussed above which would help the employees to do the job in a better way using Artificial Intelligence Technology.
2. State any five benefits of the concept identified in (a) above to the organisation. 

Give the meaning of 'Leadership' as element of directing function of management. 

Give the meaning of 'Communication' as element of directing function of management. 

Explain briefly any three semantic barriers to communication

Explain briefly any three semantic barriers to communication

Kaysons Ltd. was a reputed company manufacturing automotive parts for electric vehicles. As the demand for the electric vehicles grew, Kaysons Ltd. needed more capital to keep up with the demand for automotive parts. Atul, the Finance Manager of Kaysons Ltd. suggested that the company should raise funds through a public issue of shares as the stock market was bullish. The Chief Executive Officer fully understood that this process of raising funds would not only reduce the managements’ holding in the company but would also require considerable expenditure. Even then he agreed with the Finance Manager and the public issue of shares was made complying with the guidelines of Securities and Exchange Board of India. 

Identify and state four factors affecting choice of capital structure being discussed above. 

Nishi had gone to a grocery store to make routine purchases. On reaching home, as she took out Binx tomato chips packet from the bag to give it to her son, she felt that it was underweight. She checked its weight on the kitchen weighing scale and found that it weighed 60 grams whereas the label on the chips packet mentioned the weight of the packet as 100 grams. She approached the manufacturer and complained about it. The manufacturer offered her a gift hamper and requested her not to disclose this to anyone. Nishi refused to accept the gift hamper and took the issue to a redressal agency.

1. State two responsibilities discharged by Nishi, as a consumer, in the above case.
2. State any two reliefs which can be granted to Nishi, if the consumer court is satisfied with the genuineness of the complaint. 

Explain how the following factor affects the working capital requirement of a business: 

Operating efficiency 

Explain the following as factor affecting the requirements of working capital:

Availability of raw material

Explain any three steps of the Selection process.

Explain any three steps of the Selection process.

State any three points of importance of staffing function of management.

1. Identify and explain the incentives given by Shanta Enterprises to its employees.
2. State the needs of the employees being met by such incentives as per Maslow’s Need Hierarchy Theory.

Explain the following as feature of planning function of management:

Planning focuses on achieving objectives.

Explain the following as feature of planning function of management:

Planning is futuristic.

Explain the following as feature of planning function of management:

Planning involves decision making.

Explain the following step in the process of planning:

Setting objectives

Explain the following step in the process of planning:

Developing Premises

Explain the following step in the process of planning:

Identifying alternative courses of action 

       The above case highlights the use of Scientific principles and techniques by ‘Coffee Bean’. Explain any one such principle and two techniques.

Explain any four facilitating functions of marketing.

Explain any four facilitating functions of marketing.

Explain any four facilitating functions of marketing.

Explain any four facilitating functions of marketing.

Explain any four facilitating functions of marketing.

Explain any four facilitating functions of marketing.

Preeti started her own cooking channel on Youtube ‘Mood Art’. As her subscribers increased, she was not in a position to manage everything on her own. She hired Rahul and Riya to help her with filming, editing, lighting and content research. She granted authority to them to operate within prescribed limits. She was thus, able to use her time on high priority activities like developing new recipes and content development etc. As a result, Rahul and Riya were given opportunities to develop and exercise initiative. Preeti was now able to focus on objectives and meet the target of achieving a subscriber base of one million in six months.  

1. Identify the concept of management used by Preeti to focus on objectives of her business and meet her targets.
2. Explain any five point of importance of the concept identified in (a) above.