Business Studies · Sample Paper 1

General instructions

Section A · Objective

1. Question 11 mark

   Doing the right task, completing activities and achieving goals is

   1. A.efficiency
   2. B.effectiveness
   3. C.coordination
   4. D.planning
2. Question 21 mark

   Which level of management is responsible for the welfare and survival of the organisation?

   1. A.top
   2. B.middle
   3. C.supervisory
   4. D.operational
3. Question 31 mark

   ‘One employee should receive orders from only one superior’ is the principle of

   1. A.unity of direction
   2. B.unity of command
   3. C.scalar chain
   4. D.order
4. Question 41 mark

   Taylor's technique that separates planning and execution with specialist bosses is

   1. A.standardisation
   2. B.functional foremanship
   3. C.method study
   4. D.differential piece wage
5. Question 51 mark

   Disinvestment of public sector enterprises is part of

   1. A.liberalisation
   2. B.privatisation
   3. C.globalisation
   4. D.nationalisation
6. Question 61 mark

   A plan that states the steps in a fixed sequence for routine activities is a

   1. A.policy
   2. B.procedure
   3. C.rule
   4. D.strategy
7. Question 71 mark

   Which element of delegation can't be delegated?

   1. A.authority
   2. B.responsibility
   3. C.accountability
   4. D.work
8. Question 81 mark

   A firm making many different products would best use a

   1. A.functional structure
   2. B.divisional structure
   3. C.informal structure
   4. D.line structure
9. Question 91 mark

   Training given in a replica of the actual workplace is

   1. A.apprenticeship
   2. B.vestibule training
   3. C.coaching
   4. D.internship
10. Question 101 mark

    Recruitment is described as a

    1. A.negative process
    2. B.positive process
    3. C.control process
    4. D.training process
11. Question 111 mark

    In Maslow's hierarchy, the highest need is

    1. A.esteem
    2. B.safety
    3. C.self-actualisation
    4. D.belonging
12. Question 121 mark

    The informal channel of communication is called

    1. A.scalar chain
    2. B.grapevine
    3. C.wheel
    4. D.inverted V
13. Question 131 mark

    Focusing on key result areas is the principle of

    1. A.management by exception
    2. B.critical point control
    3. C.unity of direction
    4. D.equity
14. Question 141 mark

    The main objective of financial management is

    1. A.profit maximisation
    2. B.wealth maximisation
    3. C.sales maximisation
    4. D.cost minimisation
15. Question 151 mark

    Trading on equity is profitable when the return on investment is

    1. A.lower than the rate of interest
    2. B.higher than the rate of interest
    3. C.equal to it
    4. D.zero
16. Question 161 mark

    Treasury bills are issued by the

    1. A.RBI on behalf of the Government of India
    2. B.SEBI
    3. C.commercial banks
    4. D.companies
17. Question 171 mark

    SEBI was given statutory powers in

    1. A.1988
    2. B.1992
    3. C.1999
    4. D.2002
18. Question 181 mark

    Which is not an element of the marketing mix?

    1. A.product
    2. B.price
    3. C.place
    4. D.planning
19. Question 191 mark

    Assertion (A): A consumer can file a complaint against a defective product.

    Reason (R): The Consumer Protection Act, 2019 gives consumers the right to seek redressal.

    1. A.Both Assertion (A) and Reason (R) are true, and R is the correct explanation of A.
    2. B.Both Assertion (A) and Reason (R) are true, but R is not the correct explanation of A.
    3. C.Assertion (A) is true, but Reason (R) is false.
    4. D.Assertion (A) is false, but Reason (R) is true.
20. Question 201 mark

    Assertion (A): Advertising is an impersonal form of promotion.

    Reason (R): Advertising is a paid form of communication through mass media.

    1. A.Both Assertion (A) and Reason (R) are true, and R is the correct explanation of A.
    2. B.Both Assertion (A) and Reason (R) are true, but R is not the correct explanation of A.
    3. C.Assertion (A) is true, but Reason (R) is false.
    4. D.Assertion (A) is false, but Reason (R) is true.

Section B · Short answer

1. Question 213 marks

   Explain why coordination is called the essence of management.

2. Question 223 marks

   Explain any three dimensions of the business environment with examples.

3. Question 233 marks

   State any three limitations of planning.

4. OR

   Question 233 marks

   Distinguish between a policy and a rule.

5. Question 243 marks

   Distinguish between training and development (three points).

6. Question 253 marks

   Explain the relationship between planning and controlling.

7. Question 263 marks

   State any three rights of consumers.

Section C · Long answer I

1. Question 274 marks

   Explain any four non-financial incentives.

2. Question 284 marks

   Explain any four factors affecting the working capital requirements of a business.

3. OR

   Question 284 marks

   Explain any four factors affecting the dividend decision.

4. Question 294 marks

   Distinguish between the capital market and the money market on four bases.

Section D · Long answer II

1. Question 306 marks

   Explain any six principles of management given by Henri Fayol.

2. Question 316 marks

   Distinguish between delegation and decentralisation on six bases.

3. OR

   Question 316 marks

   Explain the steps in the selection process.

4. Question 326 marks

   What is communication? Explain any four barriers to effective communication and two ways to overcome them.

5. Question 336 marks

   Explain the four elements of the marketing mix.

6. Question 346 marks

   Explain the three-tier redressal machinery under the Consumer Protection Act, 2019.

7. OR

   Question 346 marks

   Explain the impact of government policy changes (LPG, 1991) on business and industry.