Business Studies · Sample Paper 3

General instructions

Section A · Objective

1. Question 11 mark

   Management is considered an inexact science because

   1. A.its principles are universal
   2. B.its principles deal with human behaviour
   3. C.it has no principles
   4. D.it is only an art
2. Question 21 mark

   Supervisors and foremen belong to

   1. A.top management
   2. B.middle management
   3. C.operational (lower) management
   4. D.board of directors
3. Question 31 mark

   'Fair remuneration to employees' is Fayol's principle of

   1. A.equity
   2. B.remuneration of employees
   3. C.order
   4. D.discipline
4. Question 41 mark

   Gang plank in Fayol's scalar chain allows

   1. A.direct communication between employees at the same level
   2. B.skipping top management
   3. C.a single chain only
   4. D.informal grapevine
5. Question 51 mark

   Changes in consumer tastes and lifestyle belong to the

   1. A.economic environment
   2. B.social environment
   3. C.legal environment
   4. D.technological environment
6. Question 61 mark

   A plan expressed in numerical terms is a

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

   Decentralisation means

   1. A.concentration of authority at the top
   2. B.systematic delegation of authority to all levels
   3. C.absence of authority
   4. D.only delegation to one person
8. Question 81 mark

   In a functional structure, activities are grouped on the basis of

   1. A.products
   2. B.functions like production, marketing, finance
   3. C.territories
   4. D.customers
9. Question 91 mark

   Bringing new employees into the organisation and introducing them to the job is

   1. A.induction (orientation)
   2. B.training
   3. C.selection
   4. D.appraisal
10. Question 101 mark

    Which test measures a candidate's potential to learn new skills?

    1. A.aptitude test
    2. B.trade test
    3. C.personality test
    4. D.interest test
11. Question 111 mark

    Which is a semantic barrier to communication?

    1. A.badly expressed message
    2. B.status difference
    3. C.lack of trust
    4. D.complex organisation structure
12. Question 121 mark

    Job enrichment is a

    1. A.financial incentive
    2. B.non-financial incentive
    3. C.punishment
    4. D.control technique
13. Question 131 mark

    Controlling is

    1. A.backward-looking only
    2. B.forward-looking only
    3. C.both backward and forward-looking
    4. D.neither
14. Question 141 mark

    Funds required for day-to-day operations are

    1. A.fixed capital
    2. B.working capital
    3. C.share capital
    4. D.reserve capital
15. Question 151 mark

    A higher debt–equity ratio increases

    1. A.financial risk
    2. B.retained earnings
    3. C.liquidity
    4. D.share price always
16. Question 161 mark

    The market for long-term securities is the

    1. A.money market
    2. B.capital market
    3. C.call money market
    4. D.commodity market
17. Question 171 mark

    Commercial paper is an instrument of the

    1. A.money market
    2. B.capital market
    3. C.foreign exchange market
    4. D.stock exchange only
18. Question 181 mark

    The process of identifying a product with a distinctive name, sign or symbol is

    1. A.labelling
    2. B.branding
    3. C.packaging
    4. D.pricing
19. Question 191 mark

    Assertion (A): Planning is a pervasive function.

    Reason (R): Planning is required at all levels of management and in all departments.

    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): A consumer can approach the National Commission for complaints of any value.

    Reason (R): The National Commission handles complaints where the value of goods or services paid exceeds ₹2 crore.

    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 three characteristics of coordination.

2. Question 223 marks

   Explain three features of business environment.

3. OR

   Question 223 marks

   Explain three impacts of demonetisation (2016) on business.

4. Question 233 marks

   Explain the steps in the planning process (any three).

5. Question 243 marks

   Explain three elements of delegation.

6. Question 253 marks

   Explain three importance of directing.

7. Question 263 marks

   Explain three rights of consumers under the Consumer Protection Act.

Section C · Long answer I

1. Question 274 marks

   Explain four techniques of managerial control (traditional or modern).

2. OR

   Question 274 marks

   Explain four limitations of controlling.

3. Question 284 marks

   Explain four factors affecting the fixed capital requirements of a business.

4. Question 294 marks

   Explain four factors affecting the price of a product.

Section D · Long answer II

1. Question 306 marks

   Explain the techniques of scientific management given by Taylor.

2. Question 316 marks

   Explain the importance of staffing and its relationship with human resource management.

3. Question 326 marks

   What is leadership? Explain the qualities of a good leader.

4. OR

   Question 326 marks

   Explain any three formal and informal communication networks.

5. Question 336 marks

   Explain the functions of financial markets.

6. OR

   Question 336 marks

   What is a stock exchange? Explain the steps in the trading and settlement procedure.

7. Question 346 marks

   Explain the concept of product and the elements of physical distribution.