DELHI PUBLIC SCHOOL, JODHPUR

Half Yearly Examination (2015 – 16)

Subject – Business Studies
Class – XII
Time: 3 hours M.M. 80

General Instructions :–
1. Please check that this question paper contains 03 printed pages and 25 questions.
2. Answers to questions carrying 1 mark may be from one word to one sentence.
3. Answer to questions carrying 3 marks may be from 50 to 75 words.
4. Answer to questions carrying 4-5 marks may be about 150 words
5. Answer to questions carrying 6 marks may be about 200 words.
6. Attempt all parts of a question together.

Q. 1 Name the step of Planning Process in which it is observed whether plans are being [1]
implemented and activities are being performed according to schedule.
Q. 2 Name the type of plan which is used in defence parlance which means to prepare plans [1]
considering the plan of adversary.
Q. 3 Which step of organizing process state that creating a hierarchical structure helps in [1]
coordination among various departments?
Q. 4 Why is cost of debt lower than cost of equity? [1]
Q. 5 Mr. Amit is working as sales executive in Mahalaxmi Ltd. He possesses good marketing [1]
techniques. His techniques involve presentation of message in the form of conversation
with prospective customers.
Name the promotional tool used by Mr. Amit.
Q. 6 Which institution assists, regulates and control the trading of securities for the interest of [1]
investors?
Q. 7 How is dematerialization different from rematerialization? [1]
Q. 8 Which marketing management philosophy emphasise on attracting and persuading [1]
customer to buy the product?
Q. 9 Is management a profession like medical and legal profession? Give reasons in support of [3]
your answer.
Q. 10 Vikram and Puru are two friends who have recently commenced a Construction company. [3]
They were very happy to receive two important proposals at the beginning of their business
career. First proposal was construction of a school building and second proposal was
construction of residential apartments. After a thorough study and analysis they decided to
accept the proposal of residential apartments. They approached bank to raise finance. Bank
asked them to prepare a detailed report on fund requirements and its availability to ensure
smooth operations.
(i) By quoting lines from the above paragraph state the two important elements of
financial management.
(ii) Also describe the relationship between the two elements.
Q. 11 What are the advantages of electronic trading system of securities? [3]
Q. 12 Capital market was known for malpractices and unfair trade practices, which eroded [3]
investor’s confidence and multiplied their grievances. To overcome these problems,
Government of India decided to set-up a separate regulatory body.
Explain in brief any three development functions of such separate regulatory body.

(1) P.T.O.
Q. 13 Crackers Ltd, a fire cracker manufacturing company launched new products during diwali [3]
season. Products were in great demand but appropriate ‘directions to use’ were not
mentioned on the packages, which led to many accidents.
(i) Identify and explain the meaning of product related decision that was ignored by the
company.
(ii) Discuss the functions of such product related decision.
Q. 14 Hindustan Entertainment Company has been organizing circus with the aim of promoting [4]
and conserving traditional art. But gradually it started losing its popularity. Now they are
planning to make changes to match the liking of today’s generation.
Explain the characteristics of management highlighted in the above paragraph?
Q. 15 State and explain the Principles of Management highlighted in the following paragraph: [4]
Meditech Services established a factory to manufacture blood pressure monitoring machine. The
factory does not have proper lighting and sanitation facilities. Mr. Parth the owner of Meditech
Services appointed unskilled workers to save labour cost. He prepared all the plans and procedures
to be followed by everyone. The Production Incharge Mr. Jay was asked to follow the plans to meet
the target of producing 200 machines per month. Mr. Parth told Mr. Jay that he could lose his job if
he fails to meet the target. Mr. Jay was worried as there was no proper set-up of machines and the
workers were not trained.
Q. 16 ‘No enterprise can achieve its objectives without systematic planning’. Do you agree with [4]
this statement? Give reasons in support of your answer.
Q. 17 Distinguish between ‘Rules’ and ‘Methods’. [4]
Q. 18 Explain the factors that determine the choice of channels of distribution in following cases: [4]
(a) Groceries to be supplied in Delhi.
(b) Machine for cutting and polishing of diamonds.
(c) Homeopathic medicine.
(d) Company wants to exercise full control over its market.
Q. 19 ‘Principles of management are universal and contingent’. Explain. [4]
Q. 20 In 2015 Nestle India’s one of the most popular brand ‘Maggie Instant Noodles faced a [5]
controversy where it was blamed to contain ‘lead’ beyond permitted level.
Food Safety and Standard Authority of India ordered Nestle India to withdraw Maggie
from Indian market. This controversy also raised doubts on other popular brands in the
same segment. On the other hand one of its competitors ‘Yipee Noodles’ started publicizing
itself as the safest instant noodles. Meanwhile Bombay High Court permitted export of
Maggie.
(a) By quoting lines from the above paragraph state the importance of Business
Environment.
(b) Explain the dimension of business environment highlighted in the above paragraph.
(c) State any two features of business environment highlighted in the above paragraph.
Q. 21 Neha runs a factory where she manufactures shoes. The business has been doing well and [5]
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 a complete Shoppe for working women.
(a) Which type of organization structure would you recommend and why?
(b) Explain in brief advantages of such organization structure adopted by company.
Q. 22 Mr. Sharma purchased a holiday package of three days and two nights stay at Mauritius, [5]
which he gifted to his sister Kriya. The travel agency promised stay in five star hotel and
travel in A.C buses. Mr. Sharma paid Rs. 2,00,000 i.e. 50% of price in advance. But the
agency failed to provide facilities and services as promised. Annoyed by the inconvenience
caused to Kriya and her family Mr. Sharma refused to settle the account of agency.

(2) P.T.O.
 (1) Who can file a complaint under Consumer Protection Act 1986 in the given case?
(2) Who is a consumer as per Consumer Protection Act 1986?
(3) State any three reliefs available to consumer in the above case under Consumer
Protection Act 1986.
Q. 23 ‘It is a pre requisite to the efficient functioning of an organization because it enables a [6]
manager to use his time on high priority activities and satisfies the subordinates need for
recognition and provides with an opportunity to develop and exercise initiative.’
(a) Identify the concept of Organising highlighted in the above paragraph.
(b) Briefly explain the importance of the concept identified in part (a).
Q. 24 Laxmi Ltd is a well established manufacturing firm. They produce steel utensils, which [6]
have ready demand as they are very important part of Indian kitchen. They use labour
intensive technique for production, which helps in maintaining lower fixed operating cost.
Now they are planning to expand their business by opening a new manufacturing unit
which will focus on production of export quality designer cutlery.
But this ambitious plan of expansion can become a successful venture only if it is
supported by proper selection of sources of finance. Luckily company is listed in BSE,
which has been bullish since last two months. Also company’s financial position is good
and they are not worried about expenditure on issuing prospectus, advertisement etc.
Finally management is not sure whether they can maximize the wealth of shareholders by
relying upon only one source of finance.
(a) Identify and name the financial decision highlighted above.
(b) State and explain the factors affecting financial decision identified above. Quote
lines from the above paragraph in support of your answer.
(c) What is your advice to Laxmi Ltd, to maximize the wealth of shareholders ?
Q. 25 ‘It involves a variety of programmes designed to promote or protect a company’s image [6]
and its products in the eyes of public which includes suppliers, shareholders etc. Concrete
steps are to be taken to monitor the attitude of general public and generate positive
publicity’
Identify the promotional tool highlighted in the above paragraph and describe its role in
marketing.
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(3) P.T.O.