ELPRO INTERNATIONAL SCHOOL, PUNE

Session: 2021-22
Unit Test 1
Set A

Name : Date : 22/06/2021

Class : XII Time : 2 Hours

Subject: Business Studies Max Marks: 50 Marks

General Instructions
1) Please check that this question paper contains 6 printed pages.
2) Please check that this question paper contains 20 questions.
3) Please write down the serial number of the question before attempting it.
4) 15-minute time has been allotted for reading the paper. During this time the
students will read the question paper only and will not write any answer in the
answer book during this time.
5) Attempt all parts of a question together.
6) Answers to questions carrying 1 mark may be from one word to one sentence.
7) Answers to questions carrying 2 marks may be from 50 – 75 words.
8) Answers to questions carrying 3 marks may be about 100 words.
9) Answers to questions carrying 4 marks may be about 150 words.
10) Answers to questions carrying 5 marks may be about 200 words.

Section A

Read the following text and answer question No.1-3 on the basis of the same:

Kareena is the branch manager of Airawat Handicrafts Pvt. Ltd. The company’s
aim is to promote the sales of Indian handloom and handicraft products. It
sells fabrics, furnishings, ready-mades and household items are made out of
traditional Indian fabrics.

Kareena decides quantities, variety, colour and texture of all the above items and then
allocates resources for their purchase form different suppliers. She appoints a team
of designers and crafts people in the company, who developed some prints for bed
covers in bright colour on silk. Although the products looked very attractive and
impressive, they were relatively expensive on the front of affordability for an
average customer.

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 Kareena suggested that they should keep the silk bed covers for special festive
occasions and offer the cotton bed covers on a regular basis to keep costs under
control.

Q1. “She appoints a team of designers and crafts people in the company, who 1
developed some prints for bed covers in bright colour on silk.”

Which function of management is highlighted in this context?

(A) Controlling
(B) Staffing
(C) Planning
(D) Directing

Q2. In the above case “company’s objective is to promote the sales of Indian 1
handloom and handicraft products.”

The above line focus on which feature of management?

(A) Management is an intangible force

(B) Management is a goal-oriented process
(C) Management is pervasive in nature
(D) Management is a continuous process

Q3. “Kareena suggested that they should keep the silk bed covers for special festive 1
occasions and offer the cotton bed covers on a regular basis to keep costs under
control.”

Which function of management is highlighted in this context?

(A) Controlling
(B) Staffing
(C) Organising
(D) Planning

Read the following text and answer question No.4-7 on the basis of the same:

After completing her Bachelors in Fashion Designing from a well-known college in

France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the
work in smaller units and each employee is well trained to perform his/her task
efficiently. The sales persons are allowed to close a deal with a buyer by giving a
maximum of 5 percent discount, whereas the decision to give any further
discount rests with Aditi as the final authority.
In the earlier period of her business venture, employees were asked to put in extra hours
of work. In return she had promised to give them a special incentive within a year.

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 Therefore, when the business was doing well, she honours her commitment by giving
bonus to her employees. She also instructed her employees that communication from
top to bottom should follow the official lines of command.
However, she tends to be more biased towards her female employees, when it comes to
resolve the conflicts among employees.

Q4. Aditi has divided the work in smaller units and each employee is well trained to 1
perform his/ her task efficiently. Which principle of management is being followed
here?

(a) Centralization and Decentralization

(b) Division of work
(c) Discipline
(d) Order

Q5. "The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 1
percent discount, whereas the decision to give any further discount rests with Aditi as
the final authority." Identify the principle of Management being followed here:

(a) Centralization and Decentralisation

(b) Authority and Responsibility
(c) Unity of Command
(d) Unity of Direction

Q6. “Therefore, when the business was doing well, she honoured her commitment by giving 1
bonus to her employees.” Which principle of management is being highlighted here?

(a) Discipline
(b) Order
(c) Remuneration to Employees
(d) Unity of Direction

Q7. Aditi tends to be more biased towards her female employees, when it comes to solve the 1
conflicts among employees. Which principle is being violated here?

(a) Discipline
(b) Order
(c) Equity
(d) None of these

Read the following text and answer question No.8-11 on the basis of the same:

The name and taste of Coca-Cola is known to almost each and every individual in India
as well as throughout the world. This carbonated soft drink holds the most market share
in the soft drink market and got itself a special seat in each and every gathering. The
Coca-Cola Company has on occasion introduced other cola drinks under the Coke

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 name. The most common of these are Diet Coke, along with others including Caffeine
free Coca-Cola, Diet Coke Caffeine free, Coca-Cola Zero Sugar, Coca-Cola Cherry,
Coca-Cola Vanilla and the list goes on. It has capitalized on each and every opportunity
to market itself effectively and place itself in the middle of every gathering.
The main reason for such an outstanding placement of product goes to the way they
have established the connection between every occasion and the need for Coke to be
present there, product design and creative advertising.

Q8. In the context of the above given case, identify one valid importance of Business 1
Environment.

a) Enables a firm to identify opportunities and getting first mover advantage

b) Uncertainty
c) Delay in action
d) Pervasive function

Q9. Identify the feature of Business Environment which The Coca-Cola Company managed 1
to get in their favour.

a) Complex
b) Specific and general forces
c) Futuristic
d) Mental Exercise

Q10. Which business environment did Coca-Cola majorly tap into? 1

a) Technological Environment
b) Social Environment
c) Political Environment
d) Economic Environment

Q11. Which of the following is not a product of COCA-COLA? 1

a) Diet Coke Caffeine free

b) Coca-Cola Zero Sugar
c) Coca-Cola Avocado
d) Coca-Cola Cherry

Section B

Q12. Singh Enterprises decides to have a meeting of all the key employees of different 3
departments in the organisation. The main motive is to tell the employees to keep the
target of 50% increase in sales as the main objective when they work throughout the
year. The meeting is full of ideas regarding the employees and processes involved.
Various plans are made to harness the potential of the employees and streamline the

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 processes. However, with the passage of a few days the external business environment
checks the capability of the organisation to adapt to the situations. The company
successfully comes out at the end of the year with flying colours.

What are the various characteristics of management you can find highlighted here? Also
identify the lines in which these characteristics have been highlighted.

Q13. In Atlans Ltd, no importance had been attached to the suggestions given by the 3
subordinates. In 2019, the company appointed Mr. Franco as its Chief Executive
Officer. He was an MBA degree holder with an experience of a decade.
After assuming the charge of his office, he started a campaign, in which he collected
more than 10,000 suggestions from employees out of which 1,500 were selected and
implemented in different fields. This campaign fetched the company an additional profit
of Rs 150 crore.
(i) Quoting lines from the para, identify which principle of management was
opted by Mr. Franco.
(ii) State two positive effects of this principle.

Q14. A recent rate cut in the interest on loans announced by the HDFC encouraged Shyam, a 3
science student of Ibiza School, to take a loan from HDFC to experiment and develop
cars to be powered by fuel produced from waste and garbage. He developed such a car
and exhibited it in the Science Fair organised by the Directorate of Education. He was
awarded first prize for his invention.
Identify and explain the dimensions of business environment discussed in the above
case.

Section C

Q15. Principles of Taylor and Fayol are mutually complementary. One believed that 4
management should not close its ears to constructive suggestions made by the
employees while the other suggested that a good company should have an employee
suggestion system, whereby suggestions which result in substantial time or cost
reduction should be rewarded.
Identify and explain the principles of Taylor and Fayol referred in the above para.

Q16. A company wants to modify its existing product in the market due to decreasing sales. 4
You can imagine any product about which you are familiar. What decisions/steps
should each level of management take to give effect to this decision?

Q17. The governments all over the world are becoming more and more cautious towards the 4
environment. To ensure the same, recently, many state governments passed an order to
ban polythene bags since these are non-biodegradable.

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 As a result, the government also decided to give a subsidy to jute Industry (bags). The
minister said in the statement that they believe it will be helpful as incomes of people
are rising and people can afford jute bag.
After this subsidy, Purab saw great potential in jute multi pocket bags business which
was not established yet in India but had been flourishing in UK where he studied during
his graduation. He launched the product and his business started to boom. So, more
companies entered into the market with other articles and Improvisations.

(i) Which business dimension is highlighted in the lines, "As a result, the
government also decided to give a subsidy to Jute Industry (bags)"?
(ii) Which business dimension is highlighted in the lines, “The minister said to
the statement that they believe it will be helpful as incomes of people are
rising and people can afford jute bag'?
(iii) Which merit of business environment is highlighted in the lines, "After this
subsidy, Purab saw great potential in jute multi pocket bags business which
was not established yet in India but had been flourishing in UK where he
studied during his graduation"?
(iv) Which merit of business environment is highlighted in the lines, "He
launched the product and his business started to boom. So, more companies
entered into the market with other articles and improvisations"?

Section D

Q18. How would you characterize business environment? Explain, with examples, the 6
difference between general and specific environment.

Q19. Do you think management has the characteristics of a full-fledged profession? 6

Q20. Explain the following Principles of management given by Fayol with examples: 6
(a) Unity of direction
(b) Equity
(c) Unity of Command
(d) Order
(e) Centralisation and decentralization
(f) Subordination of individual interest with general interest