class 12 bs question papers, Exams of Business Strategy

Download class 12 bs question papers and more Exams Business Strategy in PDF only on Docsity! CBSE XII | BUSINESS STUDIES All India Board Paper Set 1 ˗ 2018 www.topperlearning.com 1 CBSE Class XII Business Studies All India Board Paper Set 1 – 2018 Time: 3 hrs. Max. Marks: 80 Answer 1 Decentralisation refers to delegating authority or decision-making power to the lower levels of hierarchy. Answer 2 Method is a type of plan in which the way or manner to perform a task is provided. It differs from task to task. Answer 3 Steps followed by Saurabh which are related to planning: i. Setting objectives ii. Developing premises Answer 4 The factor affecting the working capital requirements of this industry is availability of raw materials. Answer 5 The investor could not invest in the Treasury Bill as treasury bills can be bought for a minimum amount of Rs 25,000 and in multiples thereof. Answer 6 An understanding of ‘Marketing Management Philosophies’ is important as it helps in determining the weightage to be given to different factors so that organisational objective can be achieved. Answer 7 District Consumer Disputes Redressal Forum comprises one President and two other members, one of whom is a woman. Answer 8 The labelling function being performed by the given statement is ‘helps in the promotion of products’. Answer 9 Basis Formal organisation Informal organisation Origin It is a result of rules and policies of a company. It is a result of social interactions among CBSE XII | BUSINESS STUDIES All India Board Paper Set 1 ˗ 2018 www.topperlearning.com 2 employees. Authority It is based on hierarchical structure. It is based on personal qualities of members. Flow of communication It takes place through the scalar chain. It can take place in any direction. Answer 10 Steps in the selection procedure after the employment interview and before the job offer: i. Background checks: After the individual clears the interview, the organisation may ask for references such as from previous employers or other known persons. The references are then used to cross-check the information provided by the candidate. ii. Selection decision: When the candidate clears the tests and interviews, the final selection is done. iii. Medical examination: Some organisations may also conduct a medical examination, and the job is offered only when they are declared medically fit by a medical practitioner. Answer 11 (a) Democratic style of leadership is being followed by Sandhya as she encourages her teammates to set their own objectives and take decisions. (b) Two positive aspects of informal communication which are used by Sandhya: i. Spread of information is faster when it flows through an informal path. ii. Through informal communication, managers can get to know the true thinking or mindset of employees which can prove helpful in decision making. Answer 12 Option A is better than Option B for the company to finance its future fixed capital needs. Reason: In Option A, Rate of return on investment (10–12%) > Rate of interest on borrowings (9%) Concept used: Trading on equity Answer 13 Consumer protection plays an important role for businesses in the following ways: i. Long-Term Interest: For any business, consumer satisfaction is essential. In today's times, with increasing competition, consumer satisfaction has become all the more important. As the organisation takes care of the interests of consumers, it builds goodwill and reputation in the market. This in turn helps in increasing the sales and profits of the business. Thus, protecting consumer's interests benefits the business in the long run. ii. Use of Resources: Any business survives on the basis of society. It uses the resources of society for its various production activities. It earns profits with the sale of these goods and services to society. Thus, the business must take care of the interest of society and supply goods and services which adhere to the overall interests and well-being of society. CBSE XII | BUSINESS STUDIES All India Board Paper Set 1 ˗ 2018 www.topperlearning.com 5 Answer 20 Coordination refers to the process through which the various functions of management are synchronised towards the common goals and objectives of the organisation. Features of Coordination: i. Integrates group efforts: Coordination acts as a binding force in the organisation in the sense that it unifies the efforts of various individuals in the organisation towards the achievement of common goals and objectives of the organisation. ii. Team activity: Coordination is essentially a team activity as it synchronises the contribution of all individuals for the accomplishment of organisational goals. That is, it combines the performance of individual workers for achieving the goals set. iii. Collective enforcement: The primary aim of coordination is to combine the contribution of all employees. It is a function which unifies the different functions of management. It makes sure that employees of an organisation work synchronously towards achieving organisational goals. iv. Recurring process: Coordination is a recurring process. It develops a medium among the functions of management. Coordination initiates in the beginning, i.e. from planning, and repeats till the end, i.e. till controlling. It ensures that goals are accomplished in accordance to the predetermined targets. Answer 21 (a) The feature of the business environment discussed in the above paragraph is specific and general forces. Specific forces refer to the external forces or institutions which exist outside an organisation and with which an organisation has to interact during its working course. General forces refers to those external forces which exhibit broad trends and conditions affecting all organisations. (b) Points highlighting the importance of business environment for business enterprises: i. Accumulating useful resources: Environment offers itself as a source of inputs such as raw material, machinery and labour for the running of an organisation. In return, the business supplies the environment with its output. This is possible only if the enterprises have an understanding of what the environment desires and what it can offer. ii. Adjusting to changes: Business environment is dynamic in nature and is prone to numerous socio-economic changes. A careful analysis and understanding of the environment helps an enterprise to adapt with these changes and to take timely action. iii. Formulating plans and policies: Understanding and analysing opportunities and threats help a business frame suitable plans and policies in view of the current scenario. iv. Improving performance: The main aim of analysing and understanding the environment is to improve a firm's performance and efficiency. The future of an organisation depends on how closely it bonds with the environment and thrives to survive its ever changing policies. CBSE XII | BUSINESS STUDIES All India Board Paper Set 1 ˗ 2018 www.topperlearning.com 6 Answer 22 (a) The concept discussed in the given paragraph is price of the product. (b) Four factors discussed in the above case: i. Quoted Line: After gathering and analysing information and doing correct marketing planning, he came to know that consumers compare the value of a product to the value of money which they are required to pay. Consumers will be ready to buy a product when they perceived that the value of the product is at least equal to the value of money which they would pay. Factor: The Utility and Demand ii. Quoted Line: He examined the quality and features of the products of competitors and the anticipated reactions of consumers. Factor: Extent of competition in the market iii. Quoted Line: Considering the same he decided to add some unique features to the packaging and also decided to provide free home delivery of the products. Factor: Marketing methods used iv. Quoted Line: Since he was entering into a new market, he felt that he may not be able to cover all costs. He knew that in the long run, the business will not be able to survive unless all costs are covered in addition to a minimum profit. Factor: Product cost Answer 23 The principles and technique of scientific management followed by the Production Manager in the above case: i. Method study: One must determine the best way of doing a particular task. The method so determined must aim at minimising the cost and maximising the quality. One of the popular examples of this study is the assembly line production used by Ford Motors. Quote 1: He believed that there was only one best method to maximise efficiency. The Production Manager developed this method using several parameters right from deciding the sequence of operations, place for men, machines and raw materials till the delivery of the product to customers. ii. Science, Not Rule of Thumb: According to Taylor, instead of rule of thumb, scientific management practices should be followed. Under rule of thumb, a trial and error method is used wherein each manager handles a situation in his own manner as and when it arises. According to Taylor, scientific management practices should be used. The best method of doing a task which would maximise efficiency should be developed. It would then replace the rule of thumb method. This would help in reducing the cost and improving efficiency. Quote 2: He observed that the methods of production as well as selection of employees in the company were not scientific. iii. Development of workers to their greatest efficiency and prosperity: According to Taylor, the overall efficiency and productivity in an organisation depends on how CBSE XII | BUSINESS STUDIES All India Board Paper Set 1 ˗ 2018 www.topperlearning.com 7 competent the individual employees are. Accordingly, to improve the overall productivity and efficiency, the working capabilities of employees must be improved. For this, they must be given proper training and education. Quote 3: He also felt that once the method is developed, the workers of the company should be trained to learn that 'best method'. Answer 24 i. The step of the staffing process regarding which the company decided to take action is training and development. ii. Benefits of training and development: a) Less Wastage: With training, employees learn to work systematically without the need of any hit and trial method. This helps in reducing the wastage of time and money. b) Higher Profits: By developing the skills of individuals, it makes them more efficient and productive. With increase in overall productivity, the profits of the organisation rise. c) Managerial Efficiency: Training imparts self-confidence among employees to face new challenges. It helps them to better deal with varied situations and problems. d) Reduced Absenteeism: Effective training helps in boosting self-confidence and self- reliance of employees, which in turn helps in reducing absenteeism and employee turnover in the organisation. e) Less Accident Prone: With proper training, employees become more efficient in handling complex machines. This helps in reducing the chances of an accident. Answer 25 Factors affecting the fixed capital requirements of an organisation: i. Scale of operations: A company which is operating in a large-scale of operations will require larger fixed assets in the form of plants, land and building. Larger organisation  Higher investment in fixed assets Small organisation  Lower investment in fixed assets ii. Choice of technique: A company may use labour-intensive or capital-intensive techniques. A company using capital-intensive techniques will require larger fixed assets, whereas a company using labour-intensive technique will require less fixed assets. Capital-intensive organisation  Higher investment in fixed assets Labour-intensive organisation  Lower investment in fixed assets iii. Technology upgradation: Due to changes in technology or it becoming obsolete over time, companies require a large amount of investment in fixed capital. For example, certain machinery becomes obsolete very soon compared to other assets such as furniture. Therefore, a larger fixed capital is required for upgradation. Faster upgradation Higher investment in fixed assets Slower upgradation  Lower investment in fixed assets iv. Financing alternatives: