Business Studies Class - XII 
Sample Paper - 1997 (Part - 1)

Time allowed : 3 hrs.
Maximum Marks:100


(i) This question paper is divided into four parts. Part-I carrying 50 marks is compulsory for all. Out of the remaining Parts viz.:II, C and C attempt any one part. Each part carries 50 marks.

(ii) All questions in Part-1 and the optional part (Part II or III or IV) are compulsory.

(iii) Marks are indicated against each question.

(iv ) Answers should be brief and to the point.

PART I
(PRINCIPLES AND FUNCTIONS OF MANAGEMENT)

Q 1 What is meant by management? (2 marks)


Q 2 Explain, in brief, the principle of parity of authority and responsibility.
(2 marks)


Q 3 Give two functions of a supervisor. (2 marks)


Q 4 Explain briefly the meaning of "organisation structure". (3 marks)


Q 5 State the main features of line and staff organisation. (3 marks)


Q 6 Differentiate between formal and informal organisation on the basis of formation, purpose, structure and communication. (4 marks)


Q 7 "Management is the art of getting things done through other people." Explain the importance of management in the light of the statement.
(5 marks)


Q 8 Briefly explain(a) Motion study, and (b) Esprit de corps. (5 marks)


Q 9 What is manpower planning? How will you assess the manpower requirement of a business enterprise? (5 marks)


Q 10 Explain briefly the various steps in the process of control.(5 marks)


Q 11 Describe briefly the various features of planning.
OR
Explain briefly the benefits of planning to an organisation. (6 marks)


Q 12 What is meant by 'communication'? Differentiate between oral and written communication.
OR
What is leadership? Discuss the importance of leadership in the management of a business organisation. (8 marks)


Q 13 What is meant by the term "price mix"? (2 marks)


Q 14 State the role and responsibilities of a personal manager. (3 marks)


Q 15 Distinguish between training and development. (3 marks)


Q 16 Explain briefly the objectives of financial management. (3 marks)


Q 17 State any three effects of undercapitalisation on a company. (3 marks)


Q 18 Enumerate the qualities of a good salesman. (3 marks)


Q 19 How does performance appraisal help in taking different types of management decisions? (4 marks)


Q 20 Which method of wage payment-time rate or piece rate-would you prefer in the following situations?
(a) When workers have no control over the rate of output?
(b) When work and work methods are of a standardised nature?
(c) When workers are to be remunerated on a group basis?
(d) When quality of output is more important than its quantity? (4 marks)


Q 21You are the finance manager of a company. The Board of Directors have asked you to determine the working capital requirement for the company. State the factors that you would take into consideration while determining the requirement of working capital for the company. (5 marks)


Q 22 Explain briefly the factors that you will keep in mind while selected a suitable medium of advertisement. (5 marks)


Q 23 Explain 'Financial Planning' and discuss the essentials of a sound financial plan. (7 marks)
OR
What meant by capital structure? What are the factors to be kept in mind while determining the capital structure of a company?


Q 24 Explain "personal selling" and state the advantages of personal selling.
OR
"Advertising in unnecessary and wasteful." Do you agree with the statement? Give reasons for your answer. (8 marks)

PART II
( PRINCIPLES AND FUNCTIONS OF MANAGEMENT )

Q 1 What is meant by management? (2 marks)

Q 2 Explain, in brief, the principle of Esprit de Corps. (2 marks)


Q 3 Give any two elements of directing. (3 Marks)


Q 4 Explain briefly the steps in the process of organising. (3 Marks)


Q 5 Give any three main features of the line organisation. (4 Marks)


Q 6 Distinguish between decentralisation and delegation on the basis of nature, control,need and responsibility. (4 Marks)


Q 7 "Co-ordination is the essence of management." Explain the statement with the help of examples. (5 marks)


Q 8 Briefly explain(a) Time study and(b) 'Stability of tenure' principle.
(5 marks)


Q 9 Enumerate the various steps in the staffing procedure. ( 5 marks)


Q10 Explain briefly the features of a god control system.


Q11 Explain, in brief, the steps in the planning process.
OR
What are the limitations of planning? Explain briefly. (6 marks)


Q 12 What is meant by incentive? Discuss the role of financial and non-financial incentives to increases the efficiency of workers.
OR
Differentiate between formal rate and informal communication. (8 marks)



Q 13 Explain briefly the term 'Product Mix.' (2 marks)


Q 14 State briefly the role of personal manager. (3 Marks)


Q 15 Distinguish between recruitment and selection. (3 Marks)


Q 16 Explain three important functions. Distinguish between recruitment and selections of a financial manager. (3 Marks)


Q 17 State any three effects of over-capitalisation on a company. (3 Marks)


Q 18 Enumerate any six methods of sales promotion. (3 Marks)


Q 19 A company does not have any scheme of performance appraisal. What are the consequences this company is likely to face? Explain briefly.
(4 Marks)


Q 20 Which method of wage payment-time rate or piece rate-would you prefer in the following situations :
(a) When production process is complicated and requires high degree of skill.
(b) When quantity of output s more important than its quality.
(c) When job is of a repetitive nature and output can easily be measured.
(d) When collective efforts of a group of workers are required for the
performance of work. (4 Marks)


Q 21 The directors of a company have decided to modernise the plant and machinery at an estimated cost of rupees one crorel. State the merits and demerits of issuing equity shares for the purpose. (5 marks)


Q 22 Explain briefly the functions of advertising. ( 5 marks)


Q 23 What is meant by financial planning? What factors should be kept in mind while formulating a financial plan?
OR
What is meant by capital structure? Explain briefly the factors which affect the capital structure of a company. (7 marks)


Q 24 Explain what is meant by "Personal Selling." Discuss the steps in the process of personal selling.
OR
"Money spent on advertisement is a waste." Do you agree with this statement? Give reasons for your answer. (8 marks)