CLASS XII: BUSINESS STUDIES
SA-1 (Half Yearly) Sample Question Paper - SET 1
📌 General Instructions:
- Maximum Marks: 80 | Time Allowed: 3 Hours
- Syllabus Covered: Part A (Principles and Functions of Management - Chapters 1 to 8).
- This question paper contains 34 questions. All questions are compulsory.
- Questions 1-20 are objective type questions carrying 1 mark each (Includes 17 MCQs, 1 Image-based, 2 Assertion-Reasoning).
- Questions 21-24 are short answer type questions carrying 3 marks each. Answers should not exceed 50-75 words.
- Questions 25-30 are short answer type questions carrying 4 marks each. Answers should not exceed 150 words.
- Questions 31-34 are long answer type questions carrying 6 marks each. Answers should not exceed 200 words.
- Internal choices have been provided in 3, 4, and 6 marks questions.
📝 SECTION A (1 Mark Each)
1. Efficiency in management is concerned with:
2. "Management principles are not as exact as the principles of science." This highlights which feature of management principles?
[Competency Based] A company shifted its manufacturing plant from a highly populated city to a backward rural area to avail tax benefits offered by the government and to provide employment to rural youth.
3. Which two dimensions of the business environment are highlighted here?
(a) Economic and Legal (b) Social and Economic (c) Political and Social (d) Technological and Legal
4. Which step in the planning process involves weighing the pros and cons of each alternative?
5. A network of social relationships that arises spontaneously due to interaction at work is called:
6. Which of the following is NOT an external source of recruitment?
[Competency Based] The CEO of a company believes that employees are inherently lazy and must be forced to work through strict supervision and threats of salary deduction.
7. Which leadership style is the CEO exhibiting?
(a) Democratic (b) Laissez-faire (c) Autocratic (d) Participative
8. Which function of management ensures that actual performance conforms to planned performance?
9. The framework within which managerial and operating tasks are performed is called:
10. Identifying and dividing the work is the first step in the process of:
11. Which of the following is an example of an 'On-the-job' training method?
12. "Grapevine" is a term associated with:
[Competency Based] A manager checks the quality of raw materials *before* they enter the production line to prevent defects.
13. This is an example of:
(a) Feedback control (b) Concurrent control (c) Forward-looking control (d) Deviation analysis
14. The principle of 'Order' in Fayol's principles of management implies:
15. Which of the following is a single-use plan?
16. 'Critical Point Control' focuses on:
17. The process of assigning a specific rank and responsibility to an individual, and the employee occupying that position is known as:
18. Identify the specific level of need being fulfilled in the image above according to Maslow’s Need Hierarchy Theory:
(a) Physiological Needs (b) Security Needs (c) Affiliation Needs (d) Esteem Needs
19. Assertion (A): Delegation of authority implies abdication of responsibility.
Reason (R): A manager remains completely accountable to his superior for the tasks he has delegated to his subordinates.
(a) Both A and R are true and R is the correct explanation.
20. Assertion (A): Planning reduces the risk of uncertainty.
Reason (R): Planning helps managers to anticipate future changes and develop appropriate responses to them.
(a) Both A and R are true and R is the correct explanation.
📝 SECTION B (3 Marks Each)
Mr. Rohan is a highly successful manager at 'Global Tech'. He has a thorough understanding of the theoretical principles of management, which he acquired during his MBA. However, what makes him truly exceptional is his ability to apply these theoretical principles in highly creative, personalized, and innovative ways to solve complex, unprecedented problems on the factory floor every single day. He constantly adapts his approach based on the specific situation.
21. Identify the nature of management highlighted in the case above (Science, Art, or Profession). State any two features of this identified nature of management that prove Mr. Rohan's approach.
The Supreme Court of India recently passed an order restricting the use of certain hazardous chemicals in the manufacturing of cosmetics to protect consumer health. As a direct result of this order, the overall demand for organic and herbal cosmetic products in the market skyrocketed, leading to a massive boom in the Ayurvedic industry.
22. Identify and explain the two specific dimensions of the business environment highlighted in this scenario.
23. "Authority can be delegated, but accountability cannot." Explain this statement with the help of a suitable example regarding the elements of delegation.
24. (A) State any three Semantic Barriers to effective communication.
OR
24. (B) Explain the 'Laissez-Faire' (Free-rein) style of leadership. Under what situation is this style most suitable?
📝 SECTION C (4 Marks Each)
'Alpha Motors' was facing a severe decline in its manufacturing efficiency. The newly appointed Production Head, Mr. Verma, observed that the workers were using hit-and-miss methods to assemble the engines. There was no standardized procedure. To fix this, he introduced a completely scientific approach. He conducted rigorous time and motion studies to find the "one best way" to assemble an engine. He completely discarded the old rule-of-thumb methods. However, he also realized that the workers and the management viewed each other as enemies. The workers felt overworked, and management felt the workers were lazy. Mr. Verma initiated a complete change in their mindset, urging both groups to realize that they need each other to maximize profits and wages.
25. Identify and explain the **two specific principles of Scientific Management** (given by F.W. Taylor) applied by Mr. Verma in 'Alpha Motors'.
The management of 'Zeta Retail' drafted several plans for the upcoming festive season. First, they stated a broad guideline that "The company will only hire local candidates for the new store branches." Second, they laid down a strict, chronological sequence of steps that the HR department must follow to recruit these candidates, starting from collecting resumes to issuing offer letters. Third, a strict mandate was passed that "No employee is allowed to use mobile phones on the sales floor during working hours," and a penalty of ₹500 was fixed for any violation.
26. Quoting lines from the paragraph, identify and explain the **three different types of plans** formulated by the management of 'Zeta Retail'.
27. Explain the first four steps involved in the 'Selection Process' of an organization.
28. "Controlling is an indispensable function of management." Justify this statement by explaining any four points highlighting the importance of controlling.
Ms. Kavita is the CEO of a multi-product manufacturing firm. She notices a lot of chaos in her company. The Production department manufactures 10,000 units, but the Sales department only has the budget to market 5,000 units. The Finance department refuses to release funds for raw materials on time, causing the factory machines to sit idle. To resolve this, Ms. Kavita acts as a central binding force. She calls a joint meeting, aligns the targets of all three departments, ensures they share a common schedule, and synchronizes their efforts so that production, finance, and sales move in absolute harmony towards the organizational goals.
29. (A) Identify the specific concept of management Ms. Kavita is practicing to resolve the chaos. Explain any three features of this concept.
OR
29. (B) Explain the 'Economic' and 'Technological' dimensions of the business environment with one example each.
30. Differentiate between 'Functional Structure' and 'Divisional Structure' on the basis of: (a) Formation, (b) Specialization, (c) Responsibility, and (d) Cost.
📝 SECTION D (6 Marks Each)
'Sunrise Travels' is a prominent tourism company. Due to a sudden boom in domestic tourism, the CEO wanted to aggressively expand their market share. He called a meeting with the top management. First, he clearly established a target: "We must increase our customer base by 30% in the next six months." To build a solid foundation for this target, the team studied expected inflation rates, competitor pricing, and government tourism policies for the upcoming year. After this, they brainstormed and listed several ways to achieve the target: launching a massive TV ad campaign, offering 50% discounts on flight bookings, or partnering with local hotels for cheap package deals. They carefully weighed the financial costs and potential reach of each option. Finally, they decided that partnering with local hotels was the most cost-effective and profitable option and officially adopted it as their core strategy.
31. By quoting lines from the paragraph, identify and explain the first four steps of the Planning Process executed by 'Sunrise Travels'.
'Pioneer Technologies' is a rapidly growing IT firm. Recently, the post of 'Senior Project Manager' fell vacant. The HR head suggested filling this vacancy by promoting a highly capable Junior Project Manager from within the company. He argued that this would heavily boost the morale of the existing staff and would be much cheaper and faster. However, the CEO strongly disagreed. He argued that the company was facing creative stagnation and desperately needed "fresh blood." He insisted on advertising the post in leading national newspapers and tech magazines to attract candidates from outside the organization, believing this would bring in new, innovative ideas and prevent the current employees from becoming lethargic due to guaranteed promotions.
32. Based on the case above, explain **three merits of Internal Sources** of recruitment (as argued by the HR head) and three merits of External Sources of recruitment (as argued by the CEO).
[Case Study - Min. 150 Words] Mr. Sharma joined 'Global Builders' as a site supervisor. Initially, he was highly motivated by the handsome salary and the job security provided by the company, which allowed him to buy a house and support his family comfortably. However, after five years, despite receiving regular salary increments, his motivation dropped drastically. The management noticed this and called him for a discussion. They realized Mr. Sharma felt unrecognized. To re-motivate him, the company awarded him the "Best Supervisor of the Decade" trophy in front of the entire staff. Furthermore, they gave him complete autonomy to design the safety protocols for the new site and involved him in the core management committee meetings. Mr. Sharma felt a massive surge of pride and his productivity skyrocketed.
33. Identify and explain the **three specific Non-Financial Incentives** provided by the management to re-motivate Mr. Sharma. Also, identify which specific level of Maslow's Need Hierarchy was fulfilled initially by his salary and job security.
34. (A) "Controlling without planning is blind, and planning without controlling is meaningless." In light of this statement, explain the relationship between Planning and Controlling. Also, state the first two steps of the controlling process.
OR
'Elite Furniture Ltd.' was suffering from severe management issues. The sales executives were highly confused because they were receiving conflicting instructions simultaneously from the Marketing Head (who wanted them to offer huge discounts) and the Finance Head (who strictly forbade any discounts). This led to chaos and lost sales. Furthermore, the company treated its workers very poorly. Male workers were paid ₹800 per day, while female workers doing the exact same physical labor were paid only ₹500 per day. Lastly, the workers felt highly insecure because the management had a habit of firing employees without any valid reason at a moment's notice, causing massive anxiety on the factory floor.
34. (B) Identify and deeply explain the **three Principles of Management (given by Henri Fayol)** that are being blatantly violated in 'Elite Furniture Ltd.'
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