Business Studies · Sample Paper 2

General instructions

Section A · Objective

1. Question 11 mark

   Completing a task correctly at the minimum cost is

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

   Management is called a 'pervasive' activity because it is

   1. A.required only in business firms
   2. B.universal to all organisations
   3. C.only at the top level
   4. D.an art
3. Question 31 mark

   'There should be one head and one plan for a group of activities with the same objective' is

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

   Which of Taylor's techniques aims to find the best way of doing a job?

   1. A.fatigue study
   2. B.method study
   3. C.time study
   4. D.differential piece wage
5. Question 51 mark

   The economic reforms of 1991 that reduced government licensing are called

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

   A comprehensive plan to meet competition and achieve long-term objectives is a

   1. A.rule
   2. B.strategy
   3. C.method
   4. D.budget
7. Question 71 mark

   A structure in which activities are grouped by product lines is

   1. A.functional structure
   2. B.divisional structure
   3. C.informal structure
   4. D.line structure
8. Question 81 mark

   Accountability flows

   1. A.downward
   2. B.upward
   3. C.sideways
   4. D.in all directions
9. Question 91 mark

   Which is an internal source of recruitment?

   1. A.campus recruitment
   2. B.transfer
   3. C.advertisement
   4. D.employment exchange
10. Question 101 mark

    Training in which the trainee works under an experienced worker to learn a skill is

    1. A.vestibule training
    2. B.apprenticeship training
    3. C.induction
    4. D.classroom training
11. Question 111 mark

    Which leadership style involves subordinates in decision-making?

    1. A.autocratic
    2. B.democratic
    3. C.laissez-faire
    4. D.bureaucratic
12. Question 121 mark

    Which of these is a financial incentive?

    1. A.job enrichment
    2. B.profit sharing
    3. C.status
    4. D.career advancement
13. Question 131 mark

    The first step in the controlling process is

    1. A.measuring performance
    2. B.setting performance standards
    3. C.taking corrective action
    4. D.comparing performance
14. Question 141 mark

    The decision about how much to invest in long-term assets is the

    1. A.financing decision
    2. B.investment (capital budgeting) decision
    3. C.dividend decision
    4. D.working capital decision
15. Question 151 mark

    A business with stable earnings can use more

    1. A.equity
    2. B.debt
    3. C.retained earnings only
    4. D.trade credit
16. Question 161 mark

    A call money market deals with funds for

    1. A.1 to 15 days
    2. B.1 to 5 years
    3. C.more than 1 year
    4. D.6 months
17. Question 171 mark

    Which of these is NOT a function of the stock exchange?

    1. A.providing liquidity
    2. B.pricing of securities
    3. C.accepting deposits from the public
    4. D.safety of transactions
18. Question 181 mark

    The symbol or design that identifies a product's brand is a

    1. A.brand name
    2. B.brand mark
    3. C.trademark
    4. D.label
19. Question 191 mark

    Assertion (A): Consumers need protection.

    Reason (R): Consumers are often unorganised and lack information about products.

    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): Selection is a negative process.

    Reason (R): In selection, unsuitable candidates are rejected at each step.

    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 any three objectives of management.

2. Question 223 marks

   Explain the nature of principles of management (any three features).

3. OR

   Question 223 marks

   Explain the principles of 'harmony, not discord' and 'cooperation, not individualism' of scientific management.

4. Question 233 marks

   Explain three importance of planning.

5. Question 243 marks

   Distinguish between formal and informal organisation on three bases.

6. Question 253 marks

   State three qualities of a good leader.

7. Question 263 marks

   Explain three functions of packaging.

Section C · Long answer I

1. Question 274 marks

   Explain the steps in the process of controlling.

2. OR

   Question 274 marks

   Explain four importance of controlling.

3. Question 284 marks

   Explain four factors affecting the choice of capital structure.

4. Question 294 marks

   Explain four responsibilities of consumers.

Section D · Long answer II

1. Question 306 marks

   Explain the steps involved in the staffing process.

2. Question 316 marks

   Explain the steps in the process of organising and the importance of organising.

3. Question 326 marks

   Explain Maslow's need hierarchy theory of motivation.

4. OR

   Question 326 marks

   Explain the elements of directing.

5. Question 336 marks

   Explain the objectives and functions of SEBI.

6. OR

   Question 336 marks

   Explain any four methods of floatation of new issues in the primary market.

7. Question 346 marks

   What is marketing? Explain any five functions of marketing.