CLASS 12 (CBSE )

Unit Test -2 (2020-21)

CLASS: XII                                                                           MAX MARKS: 80                             

SUB: Business Studies                                                   TIME:  3Hrs

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General Instructions:

  • Answer all questions

  • All parts of a question should be attempted at one place.

  •  Questions 1 to 20 (1mark); Questions 21to 25 (3marks); Questions 26to 28 (4marks)

  • Questions 29to 31 (5marks) Questions 32to 34(6marks)

_______________________________________________________________________________________

  1. “Management is the systematic body of knowledge that explains certain general truths.” Identifying the nature of the management highlighted in the statement.


  1. Coordination is the function of the top management (State True or False)


  1. Principles of management have been developed on the basis of ______________



  1. Tina a manager of Shikhar Automobiles Ltd., establishes an atmosphere that encourages employees to do their  best. She also creates  an environment that makes them want to work. She directs through praise and criticism in such a way that it brings out the best in the employee.


  1. Due to entry of foreign firms, competition for Indian firms has increased, especially in service industries. Name such industries



  1. It is the  process by which government control over the industry is being loosened. Give the term to which statement is trying to indicate


  1. Shifts in demand from typewriters to computer based word processors is an example of ___________________environment of business


  1. The fund raising cost is called _____________________


  1. Debt is cheaper but is more risky for a business because ___________________________


  1. A company cannot use debt beyond a point (State True or False) 


  1. ___________ is about the quantum of finance to be raised from various long term sources

a) Investment Decision b)Financing Decision

c) Dividend Decision d) Capital Budgeting Decision


  1. The time lag between the placement of order and the actual receipt of the materials is  called ______

  1. Production Cycle b) Processing Cycle c) Operating  Cycle d) Lead time


  1. Which of the following is not a participant in the money market?

  1. RBI b) SEBI c)Mutual Funds d) NBFCs


  1.  Commercial Paper is a short term unsecured promissory note having a maturity  period of_______

  1. 91 days to one year c) one day to 15 days

  2. 15 days to one year d)  one year


  1. ‘Needs’ and ‘Wants’ are one and the same thing (State True or False with reason)


  1. What is Marketing Mix?


  1. ___________________ is referred to as the essence of marketing

  1. Price b) Product c) Exchange d) Customer Satisfaction


  1.  What is Demat Account?


  1.  Match the columns

  1. Business firms set up consumer cell A) Labelling

  2. Consumer Organisations take active  part in creating

Awareness about consumer rights and reliefs B)AGMARK

  1. Quality Certification mark used for agricultural products C) Right to be heard

  2. Component of product mix that helps the consumer to D) Right to Consumer

exercise the right to information                       education


  1.  What is  Certificate of Deposit

OR

What is bridge financing


  1. Enumerate the three economic objectives of management

OR

Ashitha and Laksh are employees working in Galaxy Enterprises dealing in jewellery. The firm secured an urgent order for 1,000 bracelets that were to be delivered within 4 days. They were assigned the responsibility of producing 500 bracelets at a cost of Rs 100  per bracelet. Ashita was able to produce the required number within the stipulated time at a the cost of 55,000, whereas Laksh was able to produce only 450 units at a cost of Rs 90 per unit. State whether Ahsitha and Laksh are efficient and effective


  1. Explain briefly the redressal mechanism available to consumers under the Consumer Protection Act, 2019


  1. ABC mart started its operations in the year 1954 and emerged as the market leader in the industry because of their original designs and efficiency in operations. They had a steady demand for their products but over the years, they found their market share declining because of new entrants in the field. The firm decided to review their operations and decided that in order to meet the competition, they need to study and analyse the market trends and then design and develop their products accordingly.


  1. Explain any three factors affecting determination of the price of a product and service


  1. Discuss the  objectives of financial planning


  1. A capital budgeting decision is capable of changing the financial fortunes of a business. Do you agree? Give reasons for your answer.


  1. Shyam bought a pain relieving ointment after seeing it being displayed in the chemist’s shop. The ointment tube was packed in a cardboard box. Identify the different levels of packaging of the medicine, when it was purchased by Shyam. Also state any two functions of packaging.


  1. Praveen purchased an ISI marked washing machine of a famous brand ‘MG’ from AG Electronics Ltd.  The shopkeeper asked him to wait for two days for installation of the machine. His friend Vivek, was very fond of experimenting with new electronic products. He told Praveen that there is no need to wait for the company’s representative to install the machine and that he could do it. So, both of them installed the machine without following the manufacturer’s instructions. Initially, the machine worked effectively and the wash was good. But after two days, the machine started stopping in between the wash cycle. Praveen and Vivek tried their best to start the machine but failed in their efforts. Praveen, therefore, approached AG Electronics Ltd., which refused to provide any service on the plea that the installation of the machine was not done by the company.


  1. State the responsibility which Praveen had to fulfill as an aware consumer to get the services of the company

  2. Explain briefly any two rights which Praveen could have exercised had he fulfilled his responsibility identified in part (a) 


  1. Explain the functions of Stock Exchange

OR

Explain the various money market instruments.


  1. The Manager of Impact Enterprise, dealing in cosmetics, is facing the problem of poor sales. Suggest the four promotional measures that he can undertake to improve the sales. Also, name the factors affecting their choice


  1.  Explain briefly any five factors affecting working capital requirements of a business


  1. State the first six steps which are involved in the screen-based trading for buying and selling of securities in the secondary market.


  1. Advertising and Personal Selling both are communication tools used by the marketers to promote their products. Yet they differ in their approach. Differentiate between the two by giving six differences.


  1. Explain the various ways in which companies responded to changes in the business environment

OR

Define Coordination. State any five points highlighting the importance of coordination in an organization