Bihar Board 12th Business Studies Model Question Paper 4 in English Medium

Bihar Board 12th Business Studies Model Papers

Bihar Board 12th Business Studies Model Question Paper 4 in English Medium

Time : 3 Hour 15 Min
Full Marks : 100

Instructions

1. Candidates are required to give their answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
4. This question paper has two sections : Section -A and Section-B.
5. In Section-A, there are 50 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/ Liquid/Blade/Nail on OMR Sheet, otherwise the result will be treated as invalid.
6. In Section-B, there are 25 Short answer type questions, out of which any 15 questions are to be answered. Each question carries 2 marks. Apart from this, there are 08 Long answer type questions, out-of which any 04 of them are to be answered. Each question carries 5 marks.
7. Use of any electronic device is prohibited.

Objective Type Questions

Question No. -1 to 50 have four options provided, out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each questiion carries 1 (one) mark. [50 x 1 = 50]

Question 1.
Primary element of success of management is _________
(a) Satisfied employee
(b) Large capital
(c) Big market
(d) Maximum production.
Answer:
(b) Large capital

Question 2.
The propounder of administrative management was _________
(a) Fayol
(b) Taylor
(c) Terry
(d) None of them.
Answer:
(a) Fayol

Question 3.
The father of scientific management was _________
(a) Gilbreth
(b) F.W. Taylor
(c) Robertson
(d) Charles Babbage.
Answer:
(b) F.W. Taylor

Question 4.
Main component (s) of New Economic Policy is/ are _________
(a) Liberalisation
(b) Globalisation
(c) Privatisation
(d) All of these.
Answer:
(d) All of these.

Question 5.
Co-ordination is
(a) voluntary
(b) necessary
(c) unnecessary
(d) wastage of time.
Answer:
(b) necessary

Question 6.
“A plan is a trap to capture the future.” This statement is of _________
(a) Newman
(b) Hurley
(c) Allen
(d) Terry
Answer:
(c) Allen

Question 7.
A good plan is
(a) Rigid
(b) Expensive
(c) Flexible
(d) Time consuming
Answer:
(c) Flexible

Question 8.
Which of the following depends on the sweet will of employees ?
(a) Formal organisation
(b) Informal oganisation
(c) Functional organisation
(d) Divisional organisation
Answer:
(b) Informal oganisation

Question 9.
Authority cannot be delegated of _________
(a) Routine work
(b) Secret work
(c) Ordinary work
(d) Easy work
Answer:
(c) Ordinary work

Question 10.
Responsibility is of _________
(a) Subordinates
(b) Officer
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 11.
Money spent on staffing is _________
(a) necessary
(b) wastage
(c) investment
(d) none of these
Answer:
(c) investment

Question 12.
The manager is _________
(a) Boss
(b) Owner
(c) Leader
(d) None of these
Answer:
(c) Leader

Question 13.
Controlling is the aspect of management.
(a) theoretical
(b) practical
(c) mental
(d) physical
Answer:
(b) practical

Question 14.
Control is the function of the management.
(a) first
(b) last
(c) third
(d) second
Answer:
(b) last

Question 15.
Fixed capital is needed for period.
(a) short
(b) long
(c) short & long both
(d) none
Answer:
(b) long

Question 16.
The future of Stock Exchange in India is
(a) bright
(b) in dark
(c) ordinary
(d) no future
Answer:
(a) bright

Question 17.
Money market deals in _________
(a) short-term funds
(b) medium-term funds
(c) long-term funds
(d) none of these
Answer:
(a) short-term funds

Question 18.
For Stock Exchange services of SEBI are _________
(a) voluntary
(b) necessary
(c) unnecessary
(d) compulsory
Answer:
(d) compulsory

Question 19.
Which one is not the consumer product amongst the following ?
(a) Raw materials
(b) Refrigerator
(c) Old statues
(d) Shoes
Answer:
(c) Old statues

Question 20.
Costliest means of advertising is _________
(a) Advertising
(b) Personal selling
(c) Sales promotion
(d) Public relation
Answer:
(b) Personal selling

Question 21.
Consumer rights under Consumer Protection Act are _________
(a) 6
(b) 7
(c) 8
(d) 9
Answer:
(a) 6

Question 22.
When was SEBI established ?
(a) 1978
(b) 1988
(c) 1989
(d) 1998
Answer:
(b) 1988

Question 23.
The disputes that come under Consumer Protection Act are _________
(a) disputes as to sale of shares by a company
(b) disputes of penal nature
(c) disputes as to sale of defective goods by the seller
(d) service disputes
Answer:
(c) disputes as to sale of defective goods by the seller

Question 24.
Which of the following is not a vcharacteristic of entrepreneurship ?
(a) Risk
(b) Innovation
(c) Creative activity
(d) Managerial training
Answer:
(d) Managerial training

Question 25.
In any organisastion motivation is _________
(a) essential
(b) unnecessary
(c) burden
(d) wastage of time and money
Answer:
(a) essential

Question 26.
Source of trade credit is _________
(a) long-term finance
(b) medium-term finance
(c) sort-term finance
(d) none of these
Answer:
(c) sort-term finance

Question 27.
Comprehensive plan for accomplishing an organisation’s objectives is known as _________
(a) Policy
(b) Programme
(c) Objective
(d) strategy
Answer:
(d) strategy

Question 28.
Barrier in effective communication is _________
(a) language
(b) distance
(c) individual differences
(d) all of these
Answer:
(a) language

Question 29.
Supervisor is the link between _________
(a) top & middle management
(b) workers & middle management
(c) workers & lower management
(d) workers & directors
Answer:
(c) workers & lower management

Question 30.
Main function of financial management is _________
(a) Procurement of funds
(b) Utilisation of funds
(c) Allocation of funds
(d) None of these
Answer:
(a) Procurement of funds

Question 31.
Liquidity is created by _________
(a) Organised market
(b) Unorganised market
(c) Primary market
(d) Secondary market
Answer:
(a) Organised market

Question 32.
Stock Exchange protects the interest of _________
(a) Investor
(b) Company
(c) Government
(d) None of these
Answer:
(a) Investor

Question 33.
The birth place of concept of marketing management is _________
(a) England
(b) America
(c) France
(d) Japan
Answer:
(b) America

Question 34.
National Commission can settle consumer disputes
(a) up to Rs. 5 lakh
(b) up to Rs. 10 lakh
(c) up to Rs. 20 lakh
(d) above Rs. 1 crore.
Answer:
(c) up to Rs. 20 lakh

Question 35.
Entrepreneurial development programme provides _________
(a) unemployment
(b) employment
(c) dishonesty
(d) corruption
Answer:
(c) dishonesty

Question 36.
Management is _________
(a) Art
(b) Science
(c) Both Art and Science
(d) none of these
Answer:
(c) Both Art and Science

Question 37.
The maximum duration of commercial paper is _________
(a) 3 months
(b) 6 months
(c) 12 months
(d) 24 months
Answer:
(c) 12 months

Question 38.
Entrepreneurial Development Institute of India is situated in _________
(a) Ahmedabad
(b) Mumbai
(c) New Delhi
(d) Chennai
Answer:
(a) Ahmedabad

Question 39.
The essence of management is _________
(a) Co-ordination
(b) Organisation
(c) Staffing
(d) Control
Answer:
(a) Co-ordination

Question 40.
The organisation which spreads rumours is called _________
(a) formal
(b) informal
(c) centralised
(d) decentralised
Answer:
(b) informal

Question 41.
Commercial bill is written _________
(a) by purchaser
(b) by seller
(c) by bank
(d) by the government
Answer:
(c) by bank

Question 42.
Main elements of direction are _________
(a) 2
(b) 3
(c) 4
(d) 6
Answer:
(c) 4

Question 43.
Delegation of can be done.
(a) Authority
(b) Responsibility
(c) Accountability
(d) None of these
Answer:
(a) Authority

Question 44.
Which of the following statements is inconsistent ?
(a) Management is purposeful
(b) It is an instinct process
(c) Management is universal
(d) Management is not separate from ownership
Answer:
(c) Management is universal

Question 45.
Component (s) of new economic policy is /are _________
(a) Liberalisation
(b) Globalisation
(c) Privatisation
(d) All of these
Answer:
(d) All of these

Question 46.
depends on the wall of the employees.
(a) Formal organisation
(b) Informal organisation
(c) Functional organisation
(d) Divisional organisation
Answer:
(d) Divisional organisation

Question 47.
Method(s) of training is /are _________
(a) Conference
(b) Lectures
(c) prenticeship
(d) All of these
Answer:
(c) prenticeship

Question 48.
Motivational means should be determined on the basis of _________
(a) Group
(b) Individual
(c) Job
(d) All of these
Answer:
(d) All of these

Question 49.
In a business enterprise controlling is required _________
(a) at the time of setting up of business
(b) continuously
(c) at the time of operation of business
(d) at the end of the year
Answer:
(b) continuously

Question 50.
Main function(s) of financial management is/are _________
(a) Financial planning
(b) Procurement of funds
(c) Allocation of net profits
(d) All of these
Answer:
(d) All of these

Non-Objective Type Questions

Short Answer Type Questions

Question no. 1 to 25 are Short answer type questions. Answer any 15 out of them. Each question carries 2 marks. (15 x 3 = 30)

Question 1.
Controlling is forward looking. Explain.
Answer:
Controlling is looking forward because of remedial action is the essence of controlling. This will also include action to modify and improve upon the existing plans to prevent reference of the deviation noticed by the manager. Controlling helps in adoption of new plans and revision of existing plans on the basis of actual performance against standards.

Question 2.
Give the meaning of the term ‘deviation’ as used in the control function of management.
Answer:
Planning is provasive planning is required all levels of management as well as departments of the organisaiton. It is not exclusive function of top management nor of any particular departments.

Question 3.
What do you mean by capital structure ?
Answer:
Capital structure refers to the composition or make up or long-term sources of funds as : equity shares preference shares, debentures, retained earnings and long-term loans. Basically, there are two types of long-term funds :

1. Owner’s capital and
2. Borrowed capital

All these types of finance have to be in the right proportion in order to ensure an optimum capital structure.

Question 4.
What is money market ?
Answer:
Money market is that makret where seller and purchaser or buyer of money are available. Money buyers are those who takes loans to produce goods or services and money sellers are those who gives loan to industries.

Question 5.
Write two elements of marketing.
Answer:
Two elements of marketing :

1. To distribution of goods and services
2. To creation of utilities.

Question 6.
What do you mean by pricing of a product ?
Answer:
It is an important work of marketing management to determining the price of marketable goods. A producer or manufacturer determines the price after comprehensive study.

Question 7.
Advertising confuses the buyers. How ?
Answer:
Some traders or businessmen advertises with misrepresentation false statement and fraudulent advertisement because of this buyer get confused and tence wrong decision about trading and got cheated. They confused to what is to buy or not.

Question 8.
What is entrepreneurship ?
Answer:
Enterpreneurship is combination of a skill view point, thinking. Technique and work method.

Question 9.
Explain the role of Henry Fayol in management.
Answer:
Fayol developed a functional approach’ to management. Realising the universal nature of management problems he developed general principles of management and administration this ideas are contained in his monograph” General and industrial administration.” This book throws light on the following points :

1. Classification of Industrial Activities
2. Management qualities and training
3. General Principles of Management
4. Elements of Management.

Question 10.
Write the limitations of planning ?
Answer:
Following are the limitation of planning :

1. Forecasting may go wrong : Financial plans are prepared by taking into account the expected situation in the future. Since the future is not predictable and thing may not happen as these are for casted the utility of planning is limited.
2. Regidity : Once a plan is prepared, it becomes difficult to change it. A change in the circumstances may demand change in the financial plan but managers may not like so.
3. Problem of Co-ordination : Finance functions is the most important of all the functions.

Question 11.
Can accountability be delegated ?
Answer:
According to principle of absolute responsibility authority can be delegated but responsibility can not be delegated by a manager. The manager remains responsible or accountable to his own superior for the tasks which he may assign to his subordinates. Every superior is responsible, for the acts of his sub-ordinates to whom he delegates authority for any work.

Question 12.
What do you mean by staffing ?
Answer:
Staffing may be defined as’the managerial function of hiring and developing the required personnel to fill in various position in the organisation. It is concerned with employing the right type of people and developing their skill through training. It focuses on maintaining and improving the competence and performance of the personnel in the organisation.

Question 13.
Mention any three elements of Directing.
Answer:
Following are the three elements of directing :

1. Supervision : It implies instructing, observing, monitoring and guiding the sub-ordinates at work place to ensure that plans and procedures are implemented as intended.
2. Leadership : It involves ability to use non- coersive influence on the activities, goals and motivation of others for achieving organisational objectives.
3. Motivation : Motivation is a mental state. It is a driving force that people to action and continues them in action. Motivation is the set of forces that causes people to behave in certain ways.

Question 14.
What is meant by ‘Profit sharing’ ?
Answer:
Profit sharing : When a firm earned profit. It divided the profit amongest their partners on the basis of equal ratio or on the ratio as determined in the deed. It is called profit sharing

Question 15.
What are the different traditional techniques of controlling ?
Answer:
Following are the technique of controlling :

1. Break-even point: Break even point is an important tool which is used by managerial control. That level of sales or production where there is no loss or no profit is creled break even point.
2. pecial report and analysis : Generally special report and analysis is used to control special types of problems.
3. Budgetary control : Budgetary control is a composition between Predicted data and actual data.

Question 16.
Explain the importance of Financial planning.
Answer:
Importance of Financial Planning :

1. Co-ordination : This is done by laying down financial objectives, plans and programmed which are coherent with each other. The plan is communicated to all managers in different departments and ensures that finds are alloted to each department according to their requirements. All these factors help in achieving co – ordinations.
2. Financial control : Financial planning is the basis of financial control. It sets standards against which performance of the financial plan can be compared. The resulting deviations can be corrected and also prevented.

Question 17.
State any three characteristics of fixed capital.
Answer:
Following are the three features of fixed capital :

1. It remains for long period in business.
2. Fixed capital is used to purchase of fixed assets examples, e.g. land, building, machines etc.
3. The quantity of fixed capital is depend on the nature of business.

Question 18.
Define and explain the term ‘stock exchange’.
Answer:
Definition of stock-exchange : “Stock exchange means any body of individuals, whether incorporated or not contributed for the purpose of assisting, regulating or controlling the business of buying selling and dealing in securities.
“Stock-exchange are marketing places where securities that have been listed there on may be bought and sold for either investment or speculation.” – Pyle, Marketing Principles.

Question 19.
What is the concept of marketing mix ?
Answer:
Marketing mix refers to combination of four basic elements, viz., Product mix, Price, promotion and place known as four P’s marketing.

1. Product mix : Product mix refers to anything which is offered to the public for sales. It may be a physical object service or an idea.
2. Price mix : Goods are sold for a price consumer’s are very sensitive to price changes.
3. Promotion mix : Promotion includes all those activities which a business performs to persuade and motivate people to buy their product.
4. Place : Place mix refers to the activities that are involved in transferring ownership to customers and to make products available at the right time and please.

Question 20
What are the different types of labels ?
Answer:
The label is an information they wrapper or seal attached to a product or product’s package.
Types of label :

1. Brands label
2. Grade labels
3. Descriptive cu-informative labels.

Question 21.
What do you mean by controlling ?
Answer:
Controlling is the process through which managers assure that the actual activities conform to the planned activities.

Question 22.
Write any two advantages of budgetary control.
Answer:
Two advantages of Budgetary Control :

1. Budgets serve as a target.
2. Budgeting helps to express diverse action.

Question 23.
What is the concept of gross working capital ?
Answer:
Gross working capital means the investment in all current assets namely; cash, inventories, receivables and prepaid expenses taken together.

Question 24.
What are the two segments of capital market ?
Answer:
The two segment of capital market :

1. Organised Capital Market
2. Unorganised Capital Market

Question 25.
Name any three Non-Governmnet Organisations (NGO’s).
Answer:
Name of three Non-government Organisation :

1. Consumer Association, Kolkata
2. Karnataka Consumer Service Society, Bangluru.
3. VOICE, New Delhi.

Long Answer Type Questions

Question no. 26 to 33 are Long answer type questions. Answer any 4 of them. Each question carries 5 marks. (4×5 = 20)

Question 26.
Define the concept of management. Discuss its importance.
Answer:
The term ‘management’ has been used in different sense. Sometimes it is used in the sense of managing the ‘Group of management personnel’ in an organisaiton. At other times, management refers to the process of planning organisation, staffing, directing co-ordinating and controlling.

1. Definition of management : “To manage is to forcast and to plan to organise to command to co-ordinate and controll” – Henry Feyol.
2. “Management means the decision making.” – Rose Moore

Importance of management :

1. Maximum results with maximum resources : Management tries to secure the maximum results through the use of maximum efforts and resources.
2. Realisation of personel objectives : Some industrial concern are downed on account of skirikes and lockout. Such situation mainly arise when there is mismanagement on the part of managers.
3. Economic growth : Management is a vital force for boosting the economic growth of a country.
4. Protection of investors interests : Most of the organisaiton are run by employees-managers. They look after the interests of investors, shareholders, debenture holders etc.

Question 27.
Discuss the nature and purpose of organisation.
Answer:
Organisation is structural relationship by which an enterprise is bound together and the frame work in which individual effort is controlled.
Name of Organisaiton :

1. Formal relationship : Different type of relationship exists in formal organisation. These are senior subordinate, lateral and employee relationships.
2. Establishing co-ordination : Formal organisation structure establishes co-ordination among vairous departments and smothers the work of the entire organisation.
3. Delibrately designed structure : Formal organisation is delibrately designed by the top management. Therefore, everything done in it is official.
4. Focus on work : It lays emphasis on the accomplishment of work rather than on social relationship.

Purpose of Organisation :

1. Identification of activities and their division
2. Grouping the activities into departments.
3. Assigning duties
4. Establishing work-relationship.

Question 28.
What do you mean by recruitment ? Explain the external sources of recruitment.
Answer:
Meaning and definition of recruitment : Recruitment function is concerned with discovering the sources of. manpower required and tapping these sources.

1. “Recruitment is the process of searching for prospective employees and stimulating them- to apply for jobs in the organisation.” – Flippo.
2. “It is the process of attracting poential employees to the company.”

External sources of recruitment:

1. Factory gate : For recruitment of semi-skilled and unskilled employee a notice is put at the factory gate specifying the requirements of various types of workers.
2. Waiting list : Very often organisations prepare and maintain a waiting list of employees from the application of those condidates who had applied but could not be selected.
3. Employees recommendation : A large number of organisation asks their present employees to recommend the name of suitable candidates as anol when a vacancy arises.
4. Private placement agencies : These are of recent origin. Now-a-days reputed private placement agencies such as Tata Consultancy Service are doing commendable job in this field.
5. Employment exchange : Employment exchanges have been set up by government in metropolitan and other big cities.
6. Media advertisement : By far advertisement in leading newspaper, magazines of external recruitment for skilled and specialised jobs.

Question 29.
What is the meant by the term ‘supervision’ in management ? Explain briefly the role of a supervisor.
Answer:
Supervision means overseeing the work of the subordinates. Every managers has to guide and control his sub-ordinates while they are performing the task assigned to them. We can therefore say that supervision refers to the direct and immediate guidance and control of sub-ordinates in the performance of their tasks. Terry and Franklin define supervision as, guiding and sources to accomplish stated work outputs.”

Role of Supervisor in brief :

1. Face-to-face contact
2. An important link
3. Creating congenial atmosphere
4. Giving guidance
5. Ensures quality,
6. Giving feedback
7. Keeping up the organisational commitments
8. Suggesting Taining Programmes.

Question 30.
What do you mean by Financial Planning? Discuss the importance of Financial Planning in financial management.
Answer:
Financial Planning : Financial Planning means deciding in advance how much to spend on what to spend, according to the finds at four disposal. According to Worker and Baughan, “Financial planning pertains only to the functions of finance and includes the determination of the firms financial objectives, formulating and promulagating financial policies and developing financial procedures.”

Element determining the financial planning or Important of Financial Planning :

1. Nature of Industry : The nature of industry of business plays decisive role in drafting of financial plan. A capital intensive industry like cement, paper or fertilizer requires more capital while a labor intensive enterprise requires less amount of capital.
2. Status of unit: This step includes the evolution of increment characteristics of the wait like age size, market area, scope and nature of the field then reputation of management etc.
3. Flexibility : Flexibility and not the rigidity should be the main principal to be followed in the financial planning.
4. Plans for the future growth : Firms expect to grow larger in size as they grow old. So while undertaking current financing decisions the factors of future growth should be suitable weighted.
5. Capital structure : The capital structure of the company must be of high grade securities. It should be diversified but balanced.

Question 31.
Explain briefly any five factors to be considered in determining working capital requirements of an enterprise.
Answer:
Following are the factors which are determining working capital :

1. Size of business : Larger size of the business enterprise greater would be the need for working capital. The size of a business may be measured in terms of scale of its business organisation.
2. Production cycle : Production cycles means the time span between the purchase of raw material and its conversion into finished goods. If the production cycle is small the need for working capital will also be small.
3. Production policy : The need for working capital is also determined by production policy. The demand for certain products is seasonal. Two types of production policies may be adopted for such products. Firstly, the goods may be produced in the months of demand and Secondly, the goods may be produced through the year.
4. Availability of credit from banks : If a firm can get easy bank credit facility in case of need, it will operate with less working capital.
5. Efficiency of management : Efficiency of management is also a significance factor to determine the level of working capital. Management can reduce the need for working capital by the efficient utilization of resources. If an accelerate tea pace of cash cycle and there by use the same amount working capital again very quickly.

Question 32.
Explain briefly the benefits of advertising to manufacturers and society.
Answer:
(a) Advantages to manufacturer :

1. Advertising creates demand for the producers of a company
2. It helps salesman to secure orders easily,
3. A good image of the firm is created
4. New products can be introduced easily through advertising.

(b) Advantages to society :

1. It provided direct employment to a large number of people engaged in designing, writing and insuring advertisement
2. It is an important source of income for newspapers, magazine, radio and television. It helps the press in reducing the cost of publications.

Question 49.
Explain any six rights of consumers.
Answer:
Following are the six rights of consumers.

1. Right to safety : Consumers have the right to protected against the marketing of goods and services which are hazardous to life and property.
2. Right to information : The consumer protection act lays down that every consumer has the right to be informed about the quality, quantity, potency, purity and standard of goods and services.
3. Right to choose : Every consumer has the right to choose the goods of his/her liking. Consumers have right to be assured, wherever possible access to a variety of goods and services at competitive prices.
4. Right to heard : In case a consumer has been exploited, he/she has the right to be heard and be assured that he/she interests would receive due consideration at appropriate forums.
5. Right to seek redressal : The consumers have the right to seek redress against unfair trade practices or unsecruplous exploitation.
6. Right to consumer education : Consumer can seek information about the existing acts and agencies set up for their protection.

Question 33.
What are the main functions of an entrepreneur ?
Answer:
Following are the function of entrepreneur :

1. Take risk
2. Power to devisionl,
3. Managerial ability
4. Function of renovation
5. Creation of capital
6. Per capital income
7. To increase the opportunities of employment
8. Development of area.