SAMPLE QUESTION PAPER (2021-22)
BUSINESS STUDIES (054)
TERM II
CLASS 12
Time: 2 Hrs Max. Marks: 40
GENERAL INSTRUCTIONS
- This is a Subjective Question Paper containing 12 questions.
- This paper contains 4 questions of 2 marks each, 4 questions of 3 marks each and 4 questions of 5 marks each.
- 2 marks questions are Short Answer Type Questions and are to be answered in 30-50 words.
- 3 marks questions are Short Answer Type Questions and are to be answered in 50-80 words.
- 5 marks questions are Long Answer Type Questions and are to be answered in 80-120 words.
- This question paper contains Case/Source Based Questions.
PART A
(Accounting for Not-for-Profit organizations, Partnership firms and Companies)
Q.1 An organisation provides security services. It requires such candidates who are reliable and don’t leak out the secrets of their clients. What step should be incorporated in selection process?
Q.2 Name the financial instrument which may be used in the following situations:
(i) A company needs funds to meet floatation cost in order to issue equity shares in the market.
(ii) The instrument that is issued during the period of tight liquidity when the deposit growth of bank is slow but demand for credit is high.
Q.3 ‘Saurashtra’ is a company involved in the export of indigenous food products like chutneys and pickles. it has tied up with the small farmers in various states for sourcing of fruits and vegetables. In this way it helps the small farmers to sell their produce at reasonable rates. The company follows a practice where only significant deviations from a budget or plan are brought to the attention of management. The degree of deviations allowed in different categories in the budget are well defined in advance, along with the appropriate levels of managements who will respond to the deviations in question. For example, a deviation of Rs. 20,000 or more in purchase costs will be reported to the concerned department manager.
In context of the above case:
1. Identify the principle of management control adopted by the company. State the belief underlying this principle.
Q.4 Ramesh is working under the guidance of Harish, a carpenter. For the last three years to learn the different skills of this job. Name and explain the method of training Ramesh is Undergoing.
Q.5 A behaviour study was done on total of 100 employees of an organization. Group A (of 50 employees) were appreciated by the manager for their work and initiative for new idea. All these employees were given option of flexible working hours and were paid wages at a higher piece rate. On the other hand, Group B (of remaining 50 employees) was criticized for their poor performance. Their increments were stopped and they were paid wages at a lower piece rate.
(a) Identify and explain the feature of motivation highlighted in the above case.
(b) What type of leadership is followed by the manager? Justify your answer.
Q.6 Differentiate between formal communication and informal communication on the basis of: Channel, Nature and speed.
State the importance of directing.
Or
Explain any three features of formal communication.
Q.7 In a meeting, General manager is of the view that profit maximization is the main objective of financial management, while you as a finance manager believe that -wealth maximization is the most important objective. Justify your position to convince the board member by giving suitable reasons.
Q.8 ‘A.S. Ltd.’ is a large company engaged in assembly of air-conditioners. Recently the company had conducted the ‘Time’ and ‘Motion’ study and concluded that on an average a worker can assemble ten air-conditioners in a day. The target volume of the company in a day is assembling of 1,000 units of air-conditioners. The company is providing attractive allowances to reduce labour turnover and absenteeism. All the workers are happy. Even then the assembly of air-conditioners per day is i800 units only. To find out the reason the company compared actual performance of each worker and observed through C.C.T.V. that some of the workers were busy is gossiping.
1. Identify the function of management discussed above.
2. State those steps in the process of the function identified which are discussed in the above paragraph.
Q. 9 A company x Ltd. is setting up a new plant in India for manufacturing auto components. India has highly competitive and cost-effective production base in this sector. X Ltd. is planning to capture about 40% of the market share in India and also export to the tune of at least $5 million in about 2 years of its planned operations. To achieve these targets, it requires a highly trained and motivated workforce. You have been retained by the company to advise it in this matter.
(i) Which sources of recruitment the company should rely upon?
(ii) Which methods of training should company initiate?
Q.10 Enumerate any five rights of a consumer under the Consumer Protection Act, 2019.
OR
Enumerate any five responsibilities of a Consumer Protection Act, 2019.
Q.11 Explain the trading procedure on a stock exchange.
Q.12 Surya Ltd. is manufacturing steel at its plant in India. It is enjoying a buoyant demand for its products as economic growth is about 7% to 8% and the demand for steel is growing. Therefore, it is planning to set-up a new steel plant to take benefit of such trends in demand. It is estimated that such an expansion will require about ` 5,000 crore to set-up and about ` 500 crore of working capital. As the finance manager of the company, state any three factors that would be considered while determining the capital structure for the new venture.
OR
The Return on Investment (RoI) of a company ranges between 10-12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt.
Option ‘A’ Rate of interest 9%
Option ‘B’ Rate of interest 13%
Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reason in support of your answer. Also state the concept being used in taking the decision.