Category: Class 12

Bihar Board 12th Business Studies Model Papers

Bihar Board 12th Business Studies Model Question Paper 5 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 carefull.
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.
Profession in an Art _________
(a) Work by other
(b) Self work
(c) Both (a) and (b)
(d) None of these
Answer:
(a) Work by other

Question 2.
Project Evalution is _________
(a) 1986
(b) 1987
(c) 1968
(d) None of these
Answer:
(a) 1986

Question 3.
Risk capital establishment established For _________
(a) Import Analysis
(b) Export Analysis
(c) Both (a) and
(d) None of these
Answer:
(a) Import Analysis

Question 4.
A good Plane is ________
(a) Expensive
(b) time consuming
(c) flexible
(d) rigid
Answer:
(c) flexible

Question 5.
“Management is a profession.” This statement is of _________
(a) George R. Terry
(b) Henry Fayol
(c) American Management Association
(d) Lawrence A. Appley.
Answer:
(c) American Management Association

Question 6.
Of all managerial activities planning is the _________
(a) beginning
(b) end
(c) beginning & end both
(d) none of these
Answer:
(a) beginning

Question 7.
For delegation of authority to be effective, it is essential that accompanied with is necessary
(a) authority
(b) main power
(c) incentives
(d) Promotion
Answer:
(a) authority

Question 8.
Recruitment in the life of organisation is _________
(a) continuous
(b) occasionally
(c) once
(d) twice
Answer:
(a) continuous

Question 9.
In effective communication. language should not be used.
(a) expressive
(b) impressive
(c) ambiguous
(d) courteous
Answer:
(c) ambiguous

Question 10.
Who was the father of scientific management ?
(a) H. S. Parsons
(b) Diemer
(c) F. W. Taylor
(d) Charles Babbage
Answer:
(c) F. W. Taylor

Question 11.
Method (s) of training is /are _________
(a) conference
(b) lectures
(c) apprenticeship
(d) all of these
Answer:
(a) conference

Question 12.
Henry Fayol’s principles of management are _________
(a) 10
(b) 3
(c) 14
(d) 15.
Answer:
(c) 14

Question 13.
Financial manager takes decision as to _________
(a) finance
(b) investment
(c) dividend
(d) all of these
Answer:
(a) finance

Question 14.
Effective controlling is _________
(a) static
(b) pre-determined
(c) dynamic
(d) all of these
Answer:
(c) dynamic

Question 15.
Supervision is an element of _________
(a) leadership
(b) planning
(c) direction
(d) none of these
Answer:
(c) direction

Question 16.
Capital market deals in _________
(a) short-term funds
(b) medium-term funds
(c) long-term funds
(d) all of these
Answer:
(d) all of these

Question 17.
Consumer Protection Act was passed in _________
(a) 1886
(b) 1986
(c) 1996
(d) 1997
Answer:
(b) 1986

Question 18.
Headquarters of SEBI is in _________
(a) Delhi
(b) Mumbai
(c) Kolkata
(d) Chennai
Answer:
(b) Mumbai

Question 19.
Grapewine is _________
(a) formal Communication
(b) barriter to communication
(c) lateral communication
(d) Informal communication
Answer:
(a) formal Communication

Question 20.
Marketing includes _________
(a) Purchase
(b) Sales
(c) Warehousing
(d) All of these
Answer:
(d) All of these

Question 21.
Advertisement is deemed as _________
(a) Wastage
(b) Investment
(c) Luxury
(d) None of these
Answer:
(b) Investment

Question 22.
Bank overdraft facilities are available on _________
(a) Savings Bank Account
(b) Current Account
(c) Term Deposit Account
(d) None of these
Answer:
(b) Current Account

Question 23.
New issued shares deal in _________
(a) Secondary Market
(b) Primary Market
(c) Secondary Market and Primary Market both
(d) None of these
Answer:
(b) Primary Market

Question 24.
Budget is a statement of budgetary policy.
(a) Financial
(b) Final
(c) Work
(d) Non-financial
Answer:
(a) Financial

Question 25.
Main component (s) of New Economic Policy is/ are _________
(a) Liberalisation
(b) Globalisation
(c) Privatisation
(d) All of these
Answer:
(b) Globalisation

Question 26.
Authority cannot be delegated of _________
(a) Routine work
(b) Secret work
(c) Ordinary work
(d) None of these
Answer:
(b) Secret work

Question 27.
The proporinder of adminisimtive management was _________
(a) Fayol
(b) Taylor
(c) Terry
(d) None of these
Answer:
(b) Taylor

Question 28.
Which of the following depends on the sweet will of employees ?
(a) Formal Organisation
(b) Informal Organisation
(c) Functional Organisation
(d) Divisional Organisation
Answer:
(b) Informal Organisation

Question 29.
Co-ordination is _________
(a) voluntary
(b) necessary
(c) unnecssary
(d) waste of time
Answer:
(b) necessary

Question 30.
Fixed capital is needed for period _________
(a) short
(b) long
(c) short and long both
(d) none of these
Answer:
(b) long

Question 31.
Controlling is the aspect management.
(a) Theory
(b) Behaviour
(c) Mental
(d) Physical
Answer:
(b) Behaviour

Question 32.
Which of the following is not a characteristic of entrepreneurship ?
(a) Risk taking
(b) Innovation
(c) Creative activity
(d) Managerial training
Answer:
(d) Managerial training

Question 33.
Comprehensive plan for accomplishing an organisation’s objectives as _________
(a) Policy
(b) Programme
(c) Objective
(d) Strategy
Answer:
(d) Strategy

Question 34.
Barrier in effective communication is _________
(a) language
(b) distance
(c) individual differences
(d) all of these
Answer:
(c) individual differences

Question 35.
Which one amongst the following is not the Consumer product _________
(a) Raw material
(b) Refrigrator
(c) Old figure
(d) Share
Answer:
(c) Old figure

Question 36.
The disputes which 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 37.
Entrepreneurial Development institute of India is situated in _________
(a) Ahmedabad
(b) Mumbai
(c) New Delhi
(d) Chennai
Answer:
(a) Ahmedabad

Question 38.
The organisation spreading rumours is called _________
(a) Formal
(b) Informal
(c) Centralised
(d) Decentralised
Answer:
(b) Informal

Question 39.
The maximum duration of commercial paper is _________
(a) 3 months
(b) 6 months
(c) 12 months
(d) 24 months
Answer:
(a) 3 months

Question 40.
Stock exchange protects the interest of _________
(a) Investor
(b) Company
(c) Government
(d) None of these
Answer:
(a) Investor

Question 41.
which following is called “The Father of Scientific Management.”
(a) Alton Meyo
(b) F. W. Taylor
(c) Feyol
(d) None of these
Answer:
(b) F. W. Taylor

Question 42.
Management is :
(a) An art
(b) A science
(c) An art and science both
(d) None of these
Answer:
(c) An art and science both

Question 43.
14 principle of management is represented _________
(a) Henry Feyol
(b) F. W. Taylor
(c) Peter Drucker
(d) A. H. Maslo
Answer:
(a) Henry Feyol

Question 44.
In which following is important step in planning ?
(a) Decision
(b) Organiation
(c) Asiimption
(d) Direction
Answer:
(c) Asiimption

Question 45.
To whom social liabilities of management :
(a) To whole society
(b) Employee class
(c) Government
(d) Organisation
Answer:
(a) To whole society

Question 46.
What is the function of management ?
(a) Planning
(b) Organisation
(c) Direction
(d) None of these
Answer:
(d) None of these

Question 47.
The main object of budgeting is :
(a) Planning
(b) Co-ordination
(c) Controlling
(d) None of these
Answer:
(c) Controlling

Question 48.
“Scope of controlling” principle represented by :
(a) Henry Feyol
(b) Alton Meyo
(c) F. W. Taylor
(d) None of these
Answer:
(b) Alton Meyo

Question 49.
In inspiration’s “the principle of originated necessities” represented by :
(a) Hurjburg
(b) Maslo
(c) Alton Meyo
(d) None of these
Answer:
(b) Maslo

Question 50
communication is that _________
(a) One-sided process
(b) Two-sided process
(c) Multiple-sided process
(d) None of these
Answer:
(a) One-sided process

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.
State the nature and characteristics of Principles of Management.
Answer:
Management Principles : These are the statement of fundamental truth based on creation and systematic analysis which provides guidlines for managerial decision making and action.
Nature and charecteristics of management Principles are the same which are following :

1. Flexiblity
2. Univarsal application
3. lack of unanimity
4. Beharourial.

Question 2.
What do you mean by Scientific Management ?
Answer:
Meaning : Scientific management means a sound management technique that tends to eliminate wastage harmonises the different factors and processes of production and pings about an all around efficiency in the working of the organisation.

Definition : Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and the cheapest way.

Question 3.
State the meaning of Liberalisation.
Answer:
Industrial economy in India has always been regulated by licensing system and bureaucratic procedure regulated in red – tapism and rampant corruption.These obstacles obstructed economic growth. Liberalization is the process of freeing the economy from licence system and other regulations.
Features of liberalisation :

1. Simplifying importance export procedure
2. Simplifying the process of attracting foreign capital and technology,
3. To do away with the necessity of having a license for most of the industries
4. Removing restrictions for the movement of goods and services from one place to another
5. Freedom in determining the scale of business activities
6. Freedom to fix, the prices of goods and, services
7. Reduction in the rate of taxes
8. Freedom from unnecessary control over economy.

Question 4.
Describe the limitations of planning.
Answer:
The major limitations of planning are as follows:

1. Planning leads to rigidity : A well defined plan is drawn up with specific goals to be achieved within a specific time frame.These plans then decide the future course of action and managers may not be in the position to change it.This kind of rigidity in plans may create difficulty.
2. Planning may not work in a dynamic environment : The business environment is dynamic, nothing is constant.Planning cannot foresee everything and thus, there may be obstacles to effective planning.
3. Planning reduces creativity : Planning is an activity which is done by the top management.Usually the rest of the members just implements these plans.Thus, planning in a way reduces creativity since people tend to think along the same lines as others.There is nothing new or innovative.
4. Planning involves huge costs : When plans are drawn up huge costs are involved in their formulation.These may be in terms of time and money for example,checking accuracy of facts may involve lot of time.
5. Planning is a time – consuming proces :
   Sometimes plans to be drawn up take so much of time that there is not much time left for their implementation.
6. Planning does not grantee success.

Question 5.
What is financial management ?
Answer:
Financial management is concerned with optimal procurement as well as usage of finance for optimal procurement, different available sources of finance are identified and compared in terms of their costs and associated risks. Similarly, the finance so procured needs to be invested in a manner that the returns from the investment exceed the cost at which procurement has taken place. Financial management aims at reducing the cost of funds procured keeping the risk under control and achieving effective deployment of such funds. It also aims at ensuring availability of enough funds whenever required as well as avoiding idle finance.

Question 6.
Explain the elements of directing function of management.
Answer:
Direction includes the following elements:

1. Supervision : The term ‘supervision’ is normally used in management to mean overseeing the employees at work. Itimplies, instructing, observing, monitoring and guiding the subordinates at work place to ensure that plans and procedures are implemented as intended.
2. Communication : Communication is a process which involves a sender of- massage and a receiver.Communication is complete only when the receiver is able to interpret the massage as desired by the sender and responds to it.Communication is regarded as a two way process.The process of communication begins when one person wants to transmit a fact; idea ,opinion or other information to someone else.
3. Leadership : Leadership may be defined as the process of influencing the behavior of people at work towards the realization of specified goals.lt involves ability to use non- conceive influence on the activities,goals and motivation of others for achieving organizational objectives.
4. Motivation : Motivation is a mental state. lt is a driving force that people to action and continuous them in action.Motivation is the set of forces that cause people to behave in certain ways.

Question 7.
What is function of Stock Marketing ?
Answer
The functions of stock markets are mentioned below :

1. Liquidity : Stock exchange provides a ready market for the securities issued by various institutions.
2. Promotes the habit of saving and investment: Stock exchange promotes the habit of saving and investment among the general public.
3. Safety of Dealing : Stock exchange protects the interests of investors against malpractices or dishonesty through

(a) strict enforcement of rules and regulations, framed to protect the interests of investors,
(b) strict rules and regulation for listing of securities. In case the brokers adopt any malpractice in their dealings, their membership may be suspended for some time or cancelled or fine may be imposed.

Question 8.
Enumerate the sales promotion .
Answer:
Sales Promotion has defined by various authors as under :

1. L.KJohnson : “Sales Promotion consists of all those activities whose purpose is to supplement,to coordinate and to make more effective the efforts of the sales force,of the advertising department and of distributors and to increase sales and otherwise stimulate consumers greater initiative in buying.”
2. American Marketing Association : “Sales promotion comprises those marketing activities,other than personal selling,advertising and publicity that stimulate consumer purchasing and dealer effectiveness,non -recurrent selling efforts not in the ordinary routine.”
3. Luick and Zeiler :”Sales promotion as a tool of markets promotions gives rise to increase in product usage as well as expansion of markets for a product or introduction of a new product.”

Question 9.
Explian the four functions of management.
Answer:
The four functions of management are as follow :

(i) Planning : Planning is the function of determining in advance what is to be done and who is to do it. This implies setting goals in advance and developing a way of achieving them efficiently and effectively. Planning cannot prevent problems but it can predict them and prepare contingency plans to deal with them if and when they occur, .

(ii) Organising : Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. It determines what activities and resources are required. It decides who will do a particular task, what it will be done, and when it will be done. Organizing involves the grouping of the required tasks into manageable departments or work units and the establishment of authority and reporting relationships.

(iii) Staffing : Staffing is finding the right people for the right job. A very important aspect of management is to make sure that the right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation. This is also known as the human resource function and it involves activities such as recruitment, selection, placement and training of personnel.

(iv) Directing : Directing involves leading, influencing and motivation employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best motivation and leadership are two key components of direction. Directing also involves communicating effectively as well as supervising employees at work. Motivating workers means simply creating an environment that makes them want to work.

Question 10.
Write short notes on function of financial management ?
Answer:
The finance all manager in order to achieve the objectives of financial management, performs many functions. These functions involve many financial decisions which may be discussed under two groups.

(a) Principle functions
(b) Supplementary functions.

(a) Principle functions :
These are the types of principle functions :

1. Estimatiay the financial Requirements
2. Decision a bout capital structure,
3. Dividend Devisions.

(b) Supplementary functions:
These are the types of supplementary functions :

1. Cash management,
2. Report with Investors
3. Stock Exchange Trends.

Question 11.
What are the advantages of partnership ?
Answer:
The advantages of partnership are as following :

1. Easy to starts : There is no complicated legal procedure to start partnership. It does not take much expenditure to start partnership. It can be started very easily.
2. Sufficient capital: Partnerhsip has more capital resources as compared to sole trade. It can even get Model larger amount of loans from other institutions on easy terms.
3. More resources : The partnership has resources, contributed by at the most ten persons in banking and twenty persons in other busness. It is also the combination of the talent of many persons, working as partners.
4. Specialization in management : A division of work in partnership is done in accordance with scientific management principles.
5. Balanced decision : Decisions are taken jointly by consulting each other, therefore, the partnership is able to take balanced decision.

Question 12.
Discuss the four points of marketing.
Answer:
The four points of marketing are :

1. Product
2. Price
3. Place
4. Promotion and are discussed as below :

(i) Product : Product means goods or services or ‘anything of value’, which is offered to the market of for exchange.
For example : Hindustan Lever Company offers, number of consumer products like toiletries (close- up, tooth paste, lifebuoy, soap ec.) The important product decisions include decisions about the features, quality, packaging, lebelling and branding of the products.

(ii) Price : Price is the amount of money customers have to pay to obtain the product. The marketers have not only to decide about the objectives of price sitting but to analyse the factors determining the price and fix a price for the firm’s products.

(iii) Place : Place or physical distribution include activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers or intermediaries to reach the customers, providing support to the intermediaries. The other decision areas relate to managing inventory, storage and warehousing and transportation of goods from the place it is produced to the place it is required by the buyers.

(iv) Promotion : Promotion of products and services include activities that communicate availability features, merits etc. of the products to the target customers and persuade them to buy it. The promotional activities and spend substantial amount of money on the promotion of their goods through using number of tools such as advertising, personal selling and sales promotion techniques (like price discounts, free samples, etc.)

Question 13.
What is money market ?
Answer:
Enterprises need money, both for short medium and long’term. Medium and long medium and long term funds are raised in the capital market.
Short term funds are collected from the money market, short term means less than one year. Thus, money market is the market that facilitates the procurement of funds for short term or current requirements.
Some are the tools of money market-

1. Treasury Bill
2. Inter bank call money
3. Commercial paper
4. Certificate of Deposits
5. Trade bill / commercial bill

Question 14.
Define business company.
Answer:
The formation of a joint-stock company in India is to be done as per rules and guidelines envisaged in the companies act 1956. The meaning of companies business related with joint stock companies. Joint stock companies are made for profit and it is a optional institution which capital are undistributed in transferable shares. That is the mean it anybody can sell and purchase its share. The liabilities of the members are limited and general. It has a fixed existence and it is a artificial person and it is formed by common seal.

Question 15.
What are source of credit marketing ?
Answer:
In business the question of credit creditability is of almost significance in turns of an entrepreneur’s efforts on the basis of which the financial agencies and the businessman remain loyal and omitted to each other. This creditability is built on the basis of the business-man discipline creditability is achieved with a lot of efforts and difficulties and no remedy is available when it is lost. The transaction of the goods in the parties on the basis of commercial credit. It is called credit-marketing.

The sources of credit marketing are different type for example shares, debentures, banking companies and financial institutions from these sources traders get finance.

Question 16.
What is the role of profit/advantages in business.
Answer:
Roal of business should be profit maximisation some points are as follows :

1. Profit is the reward of labour.
2. Profit is the means of the satisfaction of human needs.
3. It is a measure of business efficiency.
4. Profit is the base of business protection, growth and stability.
5. Profit is the base of social responsibilities.
6. Profit is the cause of extension of various economies.
7. Profit is the base of exchange.
8. Profit is an incentive.

Question 17.
What is importance of consumer protection ?
Answer:
Consumer protection has a wide agenda. Importance of consumer protection from the consumers point of view.
Importance of consumers protection from the point of view of business are as follows :

1. Long-term interest of business : Satisfied customers not only lead to repeat sales but also provide good feedback to prospective customers and thus, help in increasing the customer base of business.
2. Business uses society’s resources : Business organisations use resources which belong to the society. They thus, have a responsibility to supply such products and render such services which are in public interest.
3. Socila Responsiblity : A business has social responsibilities towards varousnterest groups. Business organisations make money by selling goods and providing services to consumers.
4. Moral jusuficaPon : It is the moral duty of any business to take care of consumer’s interest and avoid any form of their exploitation. Thus, a business must avoid unscrupulous, exploitative and unfair trade practices like defective and unsafe products, adulteration, false and misleading advertising, hoarding, black marketing etc.

Question 18.
Explain the importance of financial planning in modern age.
Answer:
The importance of financial planning can be explained as follows:

1. It tries to forecast what may happen in future under different business situations
2. It helps in avoiding business shocks and surprises and helps the company in preparing for the future
3. If helps in co-ordinating various business functions e.g.sales and production functions,by providing clear policies and procedures
4. Detailed plans of action prepared under financial planning reduce waste,duplication of efforts, and gaps in planning
5. It tries to link the present with the future
6. It provides a link between investment and financing decisions on a continuous basis
7. By spelling out detailed objectives for various business segments,it makes the evaluation of actual performance easier.

Question 19.
Discuss the importance of communication in any business organisation.
Answer:
It is rightly said that managerial functions cannot be carried out without an efficient system of communication.We can give following arguments in favour of our decision:

1. Better coordination : Communication serves as a tool for coordinating activity.Coordination without communication is a remote possibility.Through communication employees come to know what is going on in other departments.
2. Quick decision and its enforcement : effective communication is needful for the quick
   decision.Effective communication translates the policies into effective instrument of seeing through the organisation on the veil of its progress.Effectiveness of the policies can be judged from its success which surely depends on effective communication system.
3. High morale of the employees : The effective medium of the communication develops the feeling of mutual trust.Hence,workers offer their proposals,suggestions and ideas.If suggestions of the workers are properly cared and promoted ,they will feed proud.All these help in boosting morale of the employees.

Question 20.
Explain the social responsibilities of the management.
Answer:
Social obligations means the responsibility of business to act in a manner which will serve the best interest of the society. The following are the various points which is need for assumption of social responsibilities :

1. Long-term business interest: While a business must seek to maximize profits and wealth, it must not igonre social and human problems of the society. Business is an important part of the society.
2. Government Intervention : The Government has favorable attitude towards business which fulfill their social obligations. Laws to prevent unfair trade practices, black marketing, overcharging, adulteration etc. bear proof of this.
3. Use of society’s resources : Business is a creation of the society and so it should respond to the requirements of the society. It is essential that every business enterprise should fulfill its social responsibilities.
4. Public image : If a business is conscious of its social responsibilities it will certainly enjoy a favorable image and will retain the needed credibility with the public.
5. Moral justification : Every business uses capital, physical, human resources of the society for business purposes.

Question 21.
Explain the various structures of organisation.
Answer:
The various forms of business organisations which is discussed follows :
(a) Sole proprietorship
(b) Joint hindu family business
(c) Partnership
(d) Cooperative societies and
(e) Joint stock company

(a) Sole proprietorship : Sole proprietorship is simple form of organisation. It is said that this organisation was evolved at the time when the man started living in family. As the time changed its shape and size went on changing. Only that person is responsible for its profits and losses. and services, creates employment opportunities, adopts new technology for the greater good of the people and leads the path towards growth and developments.

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.
“Money spent on advertising is a waste.”Do you agree with this view ? Give reasons in your answer.
Answer:
“Money spent on advertising is a waste.” We do not agree with this statement.The given statement is based on the following agreements :

1. Advertising makes people to buy things which they do not really need.
2. Advertising destroys utilities of old models already in used.Advertising introduces new products with modern technology.For example with the introduction of colour television,black and white TV,become unpopular.
3. Advertising leads to discontent in the minds of those people who are temperate to purchase advertising goods but are not able to do so because they cannot afford to buy.
4. The cost of advertisement has to be borne buy the consumers.
5. Advertising tends to develop monopolices which are not desirable from social point of view .For example ,Daldavanaspati ,coalgate toothpaste ,lux toilet soap etc.have so much monopolised the market that is very difficult new manufactures to complete with these products.
6. Advertising is morely degrading .Advertisement excessive use of outrangingssetiments ,exciting .emotions nude poses of fair sex.They lower down the calculater and moral based of the new younger generation. However,abovecritictism are exaggerated and ill- founded.Advertising performs the number of economics function .Advertising leads to increase sales and helps the firm to produce on a large scale. It creates more business and it rises the standard of leaving. The utility of advertisement has proven. lt immense need to modern business and therefore we cannot say that all advertising is unnecessary and wasteful.

Question 27.
What do you mean by Entrepreneurship ?Explain any three needs of entrepreneurship.
Answer:
Entrepreneurship is a skill,a view- point ,a thinking, a technique and a working procedure. Entrepreneurship means he capability and tendency to bear risks involved in industry and business.Entrepreneurship is an art ,a tact .view point .thought and technique.Entrepreneurship is a group behavior and knowledge based activity.Following are the three needs of entrepreneurship :

1. Resource mobilizations : After getting appraisal from funding agents,entrepreneur starts identifying and assessment of various resources that are needed as inputs to produce the desired output.The types of resources to be taken care of will include:
   • Materials
   • Money
   • Machines
   • Market availability
   • Technology and
   • Human resources Entrepreneurs try their best to get these resources at minimum cost.
2. Scanning the environment : The process of setting up of an enterprise begins with the scanning of business opportunities.To scan business opportunities entrepreneur depends upon personal observations .personal and professional contacts.reports of governments and other official documents,Discoveries of new products .published documents etc.
3. Development of product of product/ service : Scanning of business environment helps the businessmen to know the opportunities available.For example, on scanning Indian and international environment one can find that due to liberalization in trade policy there is more scope, of external trade but exactly which product to export/import in which quantity,at what price,to which country ,etc.are the next decisions businessman has to take.

Question 28.
“Human beings cannot be only motivated through monetary incentives,non -incentives,non – monetary incentives are also necessary for motivate them.” Explain about non-monetary incentives in this context.
Answer:
Financial incentives are used to motivate employees for higher work.However,individuals have various needs which they want to satisfy while working in an organisation.People at comparatively higher level of managerial hierarchy attach more importance to socio- physycological needs which cannot be satisfied by money alone.

They want status and recognition in society;they want to satisfy there ego needs and they want to achieve something in their lives,thus .management ,in addition to the financial incentives provides non -financial incentives to motivate people in the organisation.

Forms of Non -financial Incentives: In order to motivate the employees .management may use the following forms of non-financial incentives:

1. Praise of appreciation of work done : Recognition of satisfactory performance acts as a non- financial incentive since it satisfies one’s ego needs.However,this incentive should be used with great care because praising an incompetent employee creates resentment among competent employees.
2. Workers’ participation in management : Participation in management provides strong motivation to the employees.Gives them psychological satisfaction if there voice is heard participants in management provides for two ways communication and so imbibes a sense of importance
3. Suggestion system : Suggestion system is an incentive with satisfies many needs of the employees. Many organisations which use the suggestion system make use of cash awards for useful suggestion .They sometimes publish the workers name with the photograph in the company magazine.This motivates the employees to be in search for something which may be of greater use to the organisation.
4. Competition : If there is healthy competition among individual employees ,group of employees ,it leads them to achieve their personal or group goals.Hence,competition acts as none financial incentives.
5. Opportunity for growth : Opportunity for growth is another kind of intensive.If the employees are provide opportunity for their advertisement and growth to develop their personality,they feel very much satisfied and more communicate to organisation goals.

Question 29.
Explain the sub-clause of Memorandum of Association.
Answer:
The memorandum of association contains the following clauses :
(i) Name clauses : Under this clause, the name of the company is stated. Any suitable name may be chosen subject to the following restrictions :

• The name of the company must not directly or indirectly incude the word ’President”, “King”, “Queen”, “Emperor”, “National Flag”, “Small soale” and cottage Industriesd”, “Federal”, “Municipal”, “Provincial” etc.
• It must not be objectionable under the provisions of the emblems, and names.
• It should not be identifcal with or resemble the name of any existing company.
• The proposed name should not be objectionable in any other manner. It must not hurt the feelings of any section, of the society.
• The name of a public company should end with the word “Limited”. In case of private company. The name should end with “Private Limited”.
• The name has to be displayed on every letter pad or any poster or display of the company.

(ii) Domicile clause : In this clause, name of the state in which the registered office of the company is to be situated is mentioned. Domicile clause is important as it determines the jurisdiction of the court.

(iii) Object clause : It is the most important clause of Memorandum of Association. It defines the limits and scope of the operations of the company. The object clause must specify the objects of the company in the following order :

• The main object of the company to be pursued by the company on its incorporation and the objects incidental to the attainment of the main objects
• Other object of the company not included in the above clause.

(iv) Liability clause : The fourth clause must state whether liability of the members is limited if so, whether it is limited by shares or by guarantee. In a company limited by guarantee, the liability clause will state the amount which each member, shold undertake to contribute to the assets of the company in the event of liquidation of the company.

(v) Capital clause : This clause, states the amount of capital, with which the company is registered, unless the company is an unlimited company. The shares into which the capital is divided must be of fixed value, which is commonly known as the nominal value of the share, the capital is variously described as “nominal”, “authorised” or “registered”. The company cannot issue shares without altering the memorandum as provided by section 94 of the companies act, 1956.

(vi) Association clause : The memorandum concludes with the subscription clause in which there is a declaration of association. The subscribers to the memorandum declare :

“We, the several persons whose names and addresses subscribed, are desirous of being formed into a company in pursuance of this memorandum of association, and we respectively agree to take the number of shares in the capital of the company set opposite our respective names.”

Then follow the names, addresses, occupations of the subscribers, and the number of shares each subscriber has taken and his signatures attested by a witness

Question 30.
Discuss the importance and methods of training.
Answer:
The importance of training are as follows :

1. Training is a systematic learning, always better than hit and trial methods which lead to wastage of efforts and money.
2. Training increases, employee morale and reduces absenteeism an employee turnover.
3. Improved skills and knowledge due to training lead to better career of the individual.
4. Training makes the employee more efficient to handle machines. Thus, less prone to accidents.
5. It helps in obtaining effective response to fast changing environment technological and economic.

There are various methods of training. These are broadly categories into two groups : On the job and off-the job methods.

On the job methods :

1. Apprenticeship programmed : Apprenticeship programmes put the trainee under the guidance of a master worker. These are designed to acquire a higher level of skill.
2. Coaching : In this method, the superior guides and instructs the trainee as a coach. The coach or counseler sets mutually agreed upon goals.
3. Internship training : It is a joint programmer of training in which educational institutions and business firms cooperate.
4. Job rotation : This kind of training involves shifting the trainee from one department to another or from one job to another.

Off the job methods :

1. Class room lectures/conferences : The lecture or conference approach is well adapted to conveying specific information rules, procedures or methods.
2. Films : They can provide information and explicitly demonstrate skills that are not easily represened by the other techniques.
3. Case study : Taken from actual experiences of organisations, cases represente attempts to describe, as accruetly as possible real problems that managers have faced.
4. Computer modelling : It simulates the work environment by programming a computer to imitate some of the realities of the job and allows learning to take place without the risk or high costs.
5. Vestibule training Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor.
6. Programmed instruction : The method incorporates a prearranged and proposed acquisition of some specific skills or general knowledge.

Question 31.
Explain the long term financial sources in business.
Answer:
The financial requirements of a company may be classified as :

1. Long term finance
2. Medium term
3. Short term finance.

(i) Long term finance : Long term finance required for five years and above. Such finance is used for investment in fixed assets such as land, building, plant and machinery, furniture etc. Fixed assets are those assets which are required for permanent use and are not meant for sale. Long term finance is raised from shareholders, debenture holder, financial institutions and retained earnings.
Following are the main sources of long term finance :

1. Issue of shares : ‘Share’ is a share in the share capital of a company. According to section 2(46) of the companies act, “A share is the share in the capital of a company and includes stock except where a distinction between stock and share is expressed or implied.”
2. Issue of Debentures : A debenture is an instrument issued under the common seal of the company, acknowledging its debt to the holder under the terms and conditions specified in the instrument.
3. Ploughing back of profit or retained profit: Ploughing companies do not generally distribute the whole amount of profits as dividend.A certain proportion is transferred to reserves and utilised as additional capital. Thus, the financial needs of a company can be yet by retaining a part of the annual profits.
4. Loans from specialised financial institutions Loan when a bank mokes an advance in lump-sum against some security. The entire loan amount is paid to the borrower either in cash or by credit to his account, financial institutios have been set up of all India and regional levels for accelarating the growth of industries. These are mainly IFCI, ICICI, SECs, IDBI, SIDFCs, LIC, and UTI.

Question 32.
“Authority can be delegated ,but not responsibility.” Explain.
Answer:
“Authority can be delegated ,but not responsibility.” This statement is explaining about importance of delegation.Delegation or Authority is a process of sharing of tasks and authority between a manager and his subordinates.Delegation of authority is defined by Allen in the following words, “Delegation is the process a manager follows in dividing the work assigned to him so that he performs that part which only he,because of his unique organisational placement ,can perform effectively,and so that he can get others to help him with what remains.”
The following are the advantages of delegation or authority :

(i) Reduces the workload of managers : Delegation of authority permits a manager to share his workload with his subordinates. By passing on some of his own work to the subordinates,the manager is able to concentrate on more important aspects of his work-When delegation or authority takes place at all levels of the organisation it facilitates proper division of managerial work and its assignment to all managers in a systematic manner.

(ii) Basis of superior – subordinate relations : Delegation is the process by which superior – subordinate relations among managers are established.The flow of authority from the top management to lower levels is directed and regulated by the process of delegation.

(iii) Improves managerial effectiveness : In the delegation process managers pass routine work to the subordinates so they are free to concentrate on other important matters.The main job of managers is to get the work done effectively and by delegating the authorities and responsibilities.

(iv) Motivates subordinates : In the delegation when the manager is sharing his responsibilities and authority with the subordinates it motivates the subordinates as they develop the feeling of belonging and trust which is shown to them by their superiors.

(v) Facilitates the development of managers : Delegation is a source of development of managers.lt opens up opportunities for managers to acquire leadership and other skills and competency.They are required to exercise theirauthority,to handle situations and to solve managerial problems.

(vi) Facilitiesorganisational growth : In the process of delegation when the managers are passing their responsibility and authority to the subordinates they keep in mind the qualification and capability of all the subordinates.

Question 33
Mention the different external sources of recruitment.
Answer:
Anorganisation must recruit employeesfromoutside, i.e. through external sources.The important external sources of recruitment are as given follow :

(i) Factory gate : For recruitment of semi – skilled and unskilled employees a notice is put at the factory gate specifying the requirement of various types of workers.Job seekers wait outside the factory gate in the hope of finding some employment.

(ii) Waiting list: Very often organisations prepare and maintain a waiting list of employees from the applications of those candidates who had applied but could not be selected.

(iii) Employees recommendations : A large number of organisations ask their present employees to recommend the names of suitable candidates as and when a vacancy arises.The employees feel happy to recommend the names of their relatives and friends and ask them to apply for the jobs which suit them.

(iv) Labour union recommendations : It is a common practice in some organisations to ask the labour union(s) leaders to recommend the names of suitable candidates for the vacancies to be filled in the organisation.The leaders feel happy to suggest the names of suitable candidates.

(v) Private placement agencies : These are of recent origin now a days reputed private placement agencies such as Tata Consultancy Services are doing commendable jobs in this field.The agencies maintain data bank of specialists in various fields – skilled ,semi – skilled and even unskilled employees.

(vi) Employment Exchanges : Employment Exchanges have been set up by the government in metropolitan and other big other cities.People seeking employment get registered with the employment Exchange nearest to their place of residence.

(vii) Media advertisement: By far advertisement in leading newspaper,magazines and journals is a widely used method of external recruitment for skilled and specialisedjobs.lt is very effective due to the wide circulation.

(viii) Collages,institutions and campus: Reputed and multinational companies are recruiting employees through campus recruitment’ at reputed business schools,colleges and particularly at 1.1.Ms. Reputed institutions have 100% placements of their students.

Bihar Board 12th Business Studies Model Papers

Bihar Board 12th Business Studies Model Question Paper 3 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 carefull.
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 question carries 1 (one) mark. [50 x = 50]

Question 1.
“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 2.
According to George R. Terry, the types of planning are-
(a) 08
(b) 06
(c) 04
(d) 02
Answer:
(c) 04

Question 3.
Planning is for
(a) Present
(b) Future
(c) Past
(d) All
Answer:
(b) Future

Question 4.
Planning is
(a) Necessary
(b) Un necessary
(c) Wastage of time
(d) Wastage of money
Answer:
(a) Necessary

Question 5.
Of all mangerial activites planning is the
(a) Beginning
(b) End
(c) Beginning and End
(d) None of Those
Answer:
(a) Beginning

Question 6.
Father of scientific management was-
(a) Taylor
(b) Urbick
(c) Henry Fayol
(d) Kimbell
Answer:
(a) Taylor

Question 7.
Which of the following statement is inconsistent ?
(a) Management is purposeful
(b) Instinct process
(c) Universal
(d) Not separate from ownership
Answer:
(b) Instinct process

Question 8.
Henry Fayol’s principles of management are-
(a) 05
(b) 10
(c) 14
(d) 16
Answer:
(c) 14

Question 9.
When scientific management was introduced ?
(a) 1913
(b) 1832
(c) 1903
(d) 1920
Answer:
(a) 1913

Question 10.
By scientific management workers get-
(a) Advantage
(b) Disadvantage
(c) None
(d) Both Advantage & Disadvantage
Answer:
(a) Advantage

Question 11.
Wages given to workers in traditional management was-
(a) Low
(b) High
(c) Maximum
(d) Normal
Answer:
(a) Low

Question 12.
The experiment done by Taylor under scientific management were-
(a) Motion Study
(b) Fatigue Study
(c) Time Study
(d) All
Answer:
(d) All

Question 13.
Mental revolution is the essence of-
(a) Scientific Management
(b) Combination
(c) Rationalisation
(d) Profession
Answer:
(a) Scientific Management

Question 14.
Henry Fayol was born in-
(a) Japan
(b) France
(c) Germany
(d) America
Answer:
(b) France

Question 15.
Principles of management are-
(a) Universal
(b) Flexible
(c) Dynamic
(d) All of these
Answer:
(c) Dynamic

Question 16.
Development of employees involve-
(a) Transfer
(b) Promotion
(c) Training
(d) All
Answer:
(d) All

Question 17.
Methods of Training are-
(a) Conference
(b) Lectures
(c) Apprenticeship
(d) All of the above
Answer:
(d) All of the above

Question 18.
Employees training is-
(a) Unnecessary
(b) Necessary
(c) Compulsory
(d) Luxury
Answer:
(c) Compulsory

Question 19.
Money spent on staffing is-
(a) Necessary
(b) Wastage
(c) Investment
(d) None of these
Answer:
(c) Investment

Question 20.
Human Resource Development includes-
(a) Recruitment
(b) Selection
(c) Training
(d) All of these
Answer:
(d) All of these

Question 21.
Main elements of direction are-
(a) 02
(b) 03
(c) 04
(d) 06
Answer:
(c) 04

Question 22.
Direction is related to employees
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) All Level
Answer:
(d) All Level

Question 23.
Direction is
(a) Compulsory
(b) Necesssary
(c) Unnecessary
(d) Wastage of time
Answer:
(a) Compulsory

Question 24.
Supervision is
(a) Necessary
(b) un nesessary
(c) Wastage of time
(d) None of these
Answer:
(a) Necessary

Question 25.
For Stock exchange the service of SEBI is
(a) Volntary
(b) Nessary
(c) un necessary
(d) Compulsory
Answer:
(d) Compulsory

Question 26.
Marketing includes-
(a) Purchase
(b) Sale
(c) Warehousing
(d) All of the above
Answer:
(d) All of the above

Question 27.
Which one is not the consumer product among the following ?
(a) Raw materials
(b) Refrigerator
(c) Old statues
(d) Shoes
Answer:
(c) Old statues

Question 28.
Essentials of a good brand are-
(a) Short name
(b) Easy to remember
(c) Attractive design
(d) All of these
Answer:
(d) All of these

Question 29.
Labelling is compulsory in packed consumer products- ”
(a) All
(b) A Few
(c) None
(d) None of the above
Answer:
(a) All

Question 30.
Co-ordination is-
(a) Voluntary
(b) Necessary
(c) Unnecessary
(d) Wastage of time
Answer:
(b) Necessary

Question 31.
Co-ordination is established by-
(a) Highest level management
(b) Medium level management
(c) Low level management
(d) None of these
Answer:
(c) Low level management

Question 32.
According to George R. Terry the functions of management are-
(a) 02
(b) 04
(c) 06
(d) 07
Answer:
(b) 04

Question 31.
Co-ordination is established by-
(a) Highest level management
(b) Medium level management
(c) Low level management
(d) None of these
Answer:
(c) Low level management

Question 32.
According to George R. Terry the functions of management are-
(a) 02
(b) 04
(c) 06
(d) 07
Answer:
(b) 04

Question 33.
The essence of management is-
(a) Co-ordination
(b) Organisation
(c) Staffing
(d) Controlling
Answer:
(a) Co-ordination

Question 34.
The nature of management is-
(a) As an inborn ability
(b) As an acquired ability
(c) As inborn ability & as an acquired Ability both
(d) None of these
Answer:
(a) As an inborn ability

Question 35.
Management is,
(a) Art
(b) Science
(c) Art and science both
(d) Profession
Answer:
(c) Art and science both

Question 36.
Which of the following attitudes is not generally associated with successful entreprenenship ?
(a) Competition and co-operation
(b) Desire to influence others
(c) Innovation and product improvements
(d) Staticity in business
Answer:
(b) Desire to influence others

Question 37.
Physical distribution does not include-
(a) Transportation
(b) Financing
(c) Warehousing
(d) Inventory control
Answer:
(b) Financing

Question 38.
Which is not an element of promotion mix ?
(a) Advertisements
(b) Personal selling
(c) Sales promotion
(d) Product development
Answer:
(a) Advertisements

Question 39.
Advertisement is deemed as-
(a) Wastage
(b) Investments
(c) Luxury
(d) None of these
Answer:
(b) Investments

Question 40.
Objectives of sales promotion are-
(a) To introduce with new products only
(b) To attract new customers only
(c) To counter competitor only
(d) All the above
Answer:
(d) All the above

Question 41.
New economic policy was declared in
(a) July 1990
(b) July 1991
(c) July 1992
(d) July 2001
Answer:
(b) July 1991

Question 42.
National Commission can settle disputes
(a) up to Rs.5 lakhs
(b) up to Rs.10 lakhs
(c) up to Rs.15 lakhs
(d) above Rs.l crore
Answer:
(c) up to Rs.15 lakhs

Question 43.
Management is a profession.” This statement is of
(a) George R. Terry
(b) American Management Association
(c) Henry Fayol
(d) None of these
Answer:
(b) American Management Association

Question 44.
Control is the _________ function of the management.
(a) first
(b) Last
(c) Third
(d) second
Answer:
(b) Last

Question 45.
Which of the following is related with social environment ?
(a) Composition of families
(b) Consumer Protection Act
(c) Business Law
(d) Privatisation
Answer:
(a) Composition of families

Question 46.
The feature of a good plan is
(a) Expensive
(b) Time consuming
(c) Flexible
(d) Rigid
Answer:
(b) Time consuming

Question 47.
Co-ordination is established by
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) none of these
Answer:
(b) Middle level management

Question 48.
Marketing concept is
(a) Production co-oriented
(b) Sales – oriented
(c) Customer- oriented
(d) All of these
Answer:
(d) All of these

Question 49.
Fixed capital is needed for period.
(a) short period
(b) long period
(c) both (a) and (b)
(d) none of these
Answer:
(b) long period

Question 50.
Capital market deals in
(a) short – term funds
(b) medium term funds
(c) long term funds
(d) none of these
Answer:
(c) long term funds

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.
What is meant by recruitment ? How is it different from selection ?
Answer:
Recruitment-This means to search prospective candidates and to stimulate them to apply for jobs in an organisation.
Distinction between selection and recruitment :

1. Recruitment is inviting and procuring application where as selection is processing and screening applicants
2. Recruitment is a medium while selection is the end results
3. Recruitment is a positive process, while selection is a negative one.
4. The process of selection starts, where the process of recruitment ends.

Question 2.
What is critical point control ?
Answer:
Critical point control-Control can not be excercised at all points of an activity, as it may be time-consuming and very expensive. Managers should identify the important or critical points which must be looked after. If these critical points or Key Results Areas (KRAs) are properly controlled, the entire activity would be deemed to have been controlled. In a labour-oriented industry, for example, 10% increase in wages will be more deterimental for the enterprise than .the amount to be spent for the purchase of furniture and crockery for the worker’s canteen.

Question 3.
What are the objectives of SEBI ?
Answer:
The followings are the objectives of SEBI:

1. To protect the investers’ interest in securities
2. To promote and develop securities market
3. To develop code of conduct for intermediaries like brokers, merchant bankers etc.
4. To mobilise and allocate resources through securities market
5. To provide facilitate of competitive, professionalized and expanding market to the intermediaries.

Question 4.
How does planning make controlling possible ?
Answer:
Planning make controlling possible by using these types of plans :

1. Corporate plans
2. Functional Plans
3. Short – term plans
4. Long – term plans
5. Standing plans

Question 5.
Give suggestions to make advertising ‘ more effective.
Answer:
Advertising is the preparation and communication of some message to the desired population through a medium/media,regarding a product, service or idea for some consideration.
Consider following term to making advertising more effective :

1. Maintenance of quality
2. Helps in making decision
3. Educating customers
4. Aids press
5. Encouragement to research
6. Higher standard of living
7. Creation of goodwill

Question 6.
Indian Government has made many laws to secure the interests of consumers. Discuss.
Answer:
Some important Consumer Protection Act made by Indian Government as discussed below-

1. The Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act., 1980-This Act prevents social and economic evil of black marketing. Any person engaged in black marketing can be detained under this Act.
2. The Essential Commodities Act, 1956-This Act provides for the control of production, supply, price and distribution of essential commodities, like wheat, rice, sugar, oil etc.
3. The Standard of Weights and Measures Act, 1956-This Act lays down that standards of measurement must be set whenever required. Inspection of weights and measures should be undertaken as some traders find ways of weighing or measuring less or weighing the containers along with the goods.
4. The Competition Act, 2002-This Act has been substituted with the Monopolies and Restrictive Trade practices Act, 1969 (MRTP Act, 1969).
5. The Contract Act, 1982-This Act binds the people to fulfill their promises with respect to a valid contract.
6. The Consumer Protection Act, 1986-The object of this Act to protecting the consumers from anti trade practices making profit.

Question 7.
What is the importance of management ?
Answer:
If the administration of the organised sector is left to generalists, having no knowledge of management theory and practice, the activities of business and non-business organisations will be Jeopardised and there will be chaos all around. If a nation wants to be prosperious, it will have to produce efficient managers.

The following are the importance of efficient management:

1. Maximum results with minimum Resources
2. Realisation of Personal objectives,
3. Economic Growth
4. System in place of Rule of Thumb
5. Protection of Investor’s Interests.

Question 8.
“Planning is a mental process.” Explain.
Answer:
Let us examine some of the parts of definition of planning in regard “Planning is a mental process”.-
“Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. It makes possible for things to occur which would not otherwise happen : we can also say that planning is the excercise of creative thinking in the solution of business problems. It involves the determination of what is to be done, how and where it is to be done, and who shall be responsible. We conclud the above fact that The act of thinking and determining a course of action, spelt out in detail, is called planning.

Question 9.
What do you mean by ‘training’ ? How does it differ from ‘education’ ?
Answer:
Training is the process of improving the attitudes, skills, performance and knout edge of the employees to make them enable for the job. Training is different from education on the basis of following grounds –

1. Education focuses on creating lifelong independent thinkers where as training focuses on skills sought after by employers.
2. Training has its roots in the guid system while education’s origins lie in universities.
3. Training uses textbooks and prescriptives methods.
4. In today’s universities highly specialized areas of training are being bassed off as education.

Question 10.
State the objectives of controlling.
Answer:
The purpose of managerial control is to ensure the desired level of efficiency in business. It helps the manager to achive the desired goals of business efficiently and effectively. The objectives of controlling are briefly stated below :

1. To develop suitable control techniques and to diagnose critical control points
2. To ensures that the performance is in accordance with the predetermined plans or targets, and to know the actual level of performance,
3. To find out deviations from the planned schedule and targets
4. To analysis deviation for knowing causes there of.
5. To consider and take whatever correchive measure are necessary and to redefine standards, if deviations are uncontrollable.

Question 11.
Distinguish between marketing and selling.
Answer:
Marketing and selling can be distinguished on the basis of the following points :
Marketing :

1. It creates demand, products goods and services, supplies the same and satisfies the consumers.
2. It includes creation of demand, pricing, promotion, sales and after sale services.
3. It aims at optimizing profit by optimizing consumers’ satisfaction.
4. It start much earlier than that of selling and it continues even after selling has come to an end.

Selling :

1. It just transfers the ownership of goods and services to the consumers.
2. It involves giving of goods and services for some consideration.
3. It’s main objective is to maximising profits by maximising sale.
4. It start when the goods and services are ready for exchanging; it comes to an end when the owner ship is passed on to the buyer.

Question 12.
What do you mean by levels of Management ?
Answer:
‘Levels of Management’ means different categories of managers having different quanta of authority form the lowest to the highest. There is no hard and fast rule about the number of levels in an enterprise. Small organisations have less levels and the number of levels, generally, increases as the size of organisation expands. It is also not necessary that the enterprises of the same size should have equal or identical levels.
From the study point or view the various managers may be grouped into the following thrice levels.

1. Top level management.
2. Middle level management.
3. Lower level management or super-visory or operational level management.

Question 13.
Write the different steps in the process of organising.
Answer:
Organising as a process includes the following steps:

1. Identification of Activities and their division : The process of organising starts with the identification of various activities. These activities are divided into various homogeneous units, which is called job and these jobs are assigned to the employees in a manageable-and systematic manner.
2. Grouping the activities into departments : Each Cluster of homogeneous activities is eammarked as a department and it gets a name according to the activities under taken there.
3. Assigning Duties : Once departments have been created, employees working in different departments get the work to be done by them. Each employees gets the work according to his/her specialisation and skills.
4. Establishing work Relationship : Under this step various work relation ships are established. These may be senior subordinate or lateral relationship.

Question 14.
What is meant by capital structure ?
Answer:
Capital structure is the composition or mix of different types of long term capital whether owned or borrowed. These may be in the form of share capital, debentures and long term loans from financial institutions. Like the plan of capitalisation, capital structure should be also planned. Share capital is an important component of the capital structure.

Question 15.
Distinguish between Centralisation und Decentralisation.
Answer:
Centralisation & Decentralisation : Centralisation & Decentralisation are relation terms. An organisation is said to be centralised when the authority relation to decesion making is remained with top level while it is called decentralised when these authorities are delegated.

In the words of Henri fayol, Everything which goes to increase the sub-ordinate’s role, is decentralisation, everything that goes to reduce, it is centralisation.

Question 16.
Discuss in brief, any three principles of Scientific Management.
Answer:
Principles of Management :

1. Division of work : This means assigning the work to a person for which he is best suited. This principle is equally applicable to all hands of work managerial as well as technical.
2. Unity of command : This means that sub-ordinates should be receive orders from one senior only. A sub-ordinate receiving orders from two or more bosses can satisfy none.
3. Discipline : Disceplines mean the observance of rules and regulations this principle emphasises the obedience on the part of the sub-ordinates.

Question 17.
Give three advantages of budgetary control.
Answer:
There are following Advantage of Budgetory control:

1. Availcibility of yardsticks : Under budgetory control, budgets are used as yardsticks for determining the legitimacy of the task performed.
2. Maximum Utilisation of Resources : Various resources, like men, material, money etc. Can be optimally utilised through budgetory control.
3. Improvement in Co-ordination : It improve Co-ordination in the concerned activities for example, sale and production activities are interrelated.

Question 18.
Why is entrepreneurship regarded as a creative activity ?
Answer:
There are following reasons of entrepreneurship regarded as creative ativities as

1. It is necessary to management efficiently for its organisational ability and development.
2. For starting any new production.
3. For modify the organisation.
4. It is necessary for entrepreneur to development and competite their competitors.

Question 19.
Planning is a continuous process. How ? Explain.
Answer:
Planning is a continuous process : Plans need continuous review with a view to take cognisance of nature of economics to keep an equilibrium in changing pattern of demand and supply involving co-ordination of different function of management and thus to keep the business in perfect running conduction. So planning is a dynamic & continuous concept or process.

Question 20.
What do you mean by Promotion mix ?
Answer:
Promotion Mix : Promotion is an important element of marketing mix. It helps in boosting sales through its sub components.
There are four major promotion mix are :

1. Advertising
2. Personal selling
3. Sales promotion
4. Publicity.

The purpose of each is to popularize the product and services and help in boosting sales.

Question 21.
Distinguish between formal and informal communications.
Answer:
Distinguish between formal & informal communication
Formal communication :

1. It takes place in the formal fashion.
2. Communication takes place among officials or with outsiders in their capacity.
3. Parties involved in communication have formal relations.
4. Message is more reliable as the communication take place officially.
5. It consist information technology like cellphones, computers etc.

Informal communication :

1. It take place unofficially.
2. Communication takes place among official or with outsiders in unofficial capacity.
3. Here they have social or friendly relations.
4. Members communicate in their personal capacity sometimes inaccurate information may be passed on.
5. it consist face-to-face communication.

Question 22.
State any two functions of top level management.
Answer:
Following are the two function of top level management :

1. The main function of top level management is that to explain the objectives; determination of policy and directing.
2. It’s function to determine short-term or long term objectives of organisation.

Question 23.
Explain any two elements of delegation of authority.
Answer:
Following are the two elements of delegation of authority.

1. Assignments of tasks and duties : In the process of delegation every superior has to define the jobs to be performed by his subordination.
2. Grant of Authority : Grant of authority implies giving the rights to subordinates to decide and act, to use necessary resources and represents the superior.

Question 24.
What is Recruitment ?
Answer:
Recruitment functions is concerned with discovering the sources of man power required and tapping these sources, i.e. attracting the potential, employees to offer services to the working organisation.

Question 25.
Enumerate any four non-monetary incentives.
Answer:
Four-non-monetary incentive :

1. Safe services
2. Opportunity to promotion,
3. Eligibility, praise
4. Justice
5. Top enrichment
6. job security.

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.
What is financial planning ? What are the element/factors which affect financial planning ?
Answer:
13. Financial planning-Financial planning means deciding in a advance how much to spend, on what to spend, according to the funds at your disposal. Walker and Baughn have defined financial planning in the following words-

“Financial planning pertains only to the function of finance and includes the determination of the firm’s financial objectives, formulating and promulgating financial policies and developing financial procedures.”
This definition is considered to be the best definition of financial planning. It includes three main aspects of financial planning-

1. Determination of financial objectives
2. Formulation of financial Policies
3. Development of financial procedures.

Factors Affecting Financial Planning Or, Elements Determining Financial Planning-A financial plan should be prepared very carefully because it has long-term impact on the working of an enterprise. Financial plan is affected by a number of factors. All these factors should be taken into consideration while preparing a financial plan-

(i) Nature of industry – The nature of industry of business plays a decisive role in drafting of financial plan. A capital-intensive industry like cement, paper or fertilizer requires more capital while a labour
intensive enterprise requires less amount of capital. In addition to it, the stability and regularity of income, future prospects of growth, the fluctuations in the demand of the product being manufactured by the firm, the extent of automation, etc., play a dominant role in determining the capital needs as well as capital structure.

(ii) Status of unit – This step includes the evaluation of increment characteristics of the unit like age, size, market area, scope and nature of the field, then reputation of management etc.

(iii) Flexibility – Flexibility and not the rigidity should be the main principle to be followed in the financing planning. If there is no flexibility in financial plans it would be very difficult later on, to carry on its expansion or diversification programmes due to lack of funds.

(iv) 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 weighed. Capital structure must be of high grade securities.

(v) Capital structure – The capital structure of the company must be of high grade securities. It should be diversified but balanced. No permanant charge should be created on the capital of the industry. Fair rate of dividend should also be maintained.

(vi) Amount of risk – The risk involved in the business should also be discussed while planning the sources of funds. For business having more risks should issue ownership securities only while enterprise with stable earning expectation can take advantage of trading on equity.

(vii) Magnitude of external capital requirement – It would be a good policy for the industry to finance its expansion or diversification programmes through internal resources such as ploughing back of profits, reserves and surplus, etc., but short-term finances may be obtained from external sources by issuing redeemable preference shares or debentures if they are urgently needed.

(viii) Attitude of management – The attitude of management and management policies regarding trading on equity, capital earning ratio, the desire and extent to converse the control of enterprise, etc., affect in no small amount of pattern of financing.

(ix) Appraisal of alternative sources of finance – A study of the potential suppliers of fund has to be made and then Only a firm can expect to obtain funds suited to its advantage.

(x) Government policies and control – In preparing financial plan, the promoter should invariably take into account the governmental policies, financial controls and other monetary and fiscal policies of the government.

Question 27.
Explain various money market instruments.
Answer:
The main tools of money market have been described below-
(i) Treasury bills-These instruments are issued Reserve Bank of India. These are short-term securities with moturities of one year or less. These bills bear on interest. However they are issued at less than their face value and redeemed at for – the difference bring the interest on investment.

(ii) Interbank call money-This is a technique of lending and borrowing by banks on short-term basis. There may be situations when banks may come across shortage of money due to excessive withdraws or beary loan demands. In such cases banks can take loans from others banks as emergency solutions such loans are usually given for one day.

(iii) Commercial paper-This is a debt instrument issued by a company to meet its short-term financing needs. This is normally in the form of a promissory note. The issuing company promises to pay back the amount of the commercial paper within a stipulated period which is usually less than 270 days.

(iv) Certificates of deposit (CDs)-These were introduced in India in 1989 as a short-term unsecured promissary note, these are relatively low-risk debt instruments issued by banks. They mention that the named party has a specified sumon deposit, usually for a given period of time, at a fixed rate of interest, the period of CDs generally range from one month to five years. It implies that this sources in useful for short and medium-terms. Howevers, the permissible periodical range, at present, in India money market is from 7 to 365 days.

(v) Commercial bill/Trade bill – It is the bill of exchange drawn by the creditor on his/her debtors, extending credit for a short-term, it is a written order for a certain period to boy a specific sum for which the debtors has received value. After it has been signed by the debtors, it becomes a negotiable instruments. It can be discounted in a bank dr endorsed to a person against receipt of equivalent value or be kept till maturity and then getting the amount stated in it.

Question 28.
What do you mean by ‘Delegation’ ? Explain any four points which highlight the importance of delegation in an organisation.
Answer:
The need of delegation of authority arises when the volume is work of a manager increased and
be becomes over burdened. In order to reduce his work load, he follows a process by which some tasks within his Jurisdiction are assigned to his sub ordinates on a selective basis. For during the assigned work/ task, appropriate authority is also given. Such authority is known as delegation of authority.

Definitions : “Delegation is the process of a manager follow in dividing the work assigned to him so that he performs that part which only he, because of his unique organisational placement, can perform effectively and so that he can get others to help him what remains.”

Importance of delegation can be explained through the following points.

1. Relief to over burdned managers : As the business expand, seniors may become too heavily occupied. They may need the services of someone who can share their burden. They find the remedy by adapting the technique of delegation.
2. Improvement is the Quality and Quantity of works : When a single person has to do voluminous work, he does it at he cost of its quality and quantity. He can take care of both if he shares their work with someone. Delagation provides on opporunity to seniors for sharing their work with subordinates.
3. Source of Enhancing Job satisfactions : Delegation provides opportunities of Job-enlargement and Job-enrichment to sub-ordinates.
4. Seniors’ focus on more important Tasks : Seniors, generally, delegate the routine type of tasks to their delegates. This enables them to devote more time and energies to more important tasks.
5. Training ground for the sub-ordinates : Delegation provides opportunities to the sub-ordinates for doing higher level job.
6. Quick Decesion making : Since delegatees get limited tasks through delegation, they are able to take decisions quickly.
7. Effective co-ordination : Delegation stream lines the co-ordination and makes it more effective. All this makes co-ordination more effective.

Question 29.
“Money spent on advertisement is a social waste” Do you agree with this ?
Answer:
No ! the money spent on advertisement is not social waste, but it is an investment. Advertising plays a beneficial role for boosting up the sale, profit and reputation of the modern business. It provides benefits not only traders but to the customers and society also, which have been discussed below:

1. Increase Sales : The mein objective of advertisement is to increase sales production on a large scale, makes it necessary to sell on a large scale. Advertisement helps to create a wide base to facilities sales on large scale.
2. Steady demand : In the absence of personal touch between the buyers and the sellers, it is necessary to keep customers constantly aware and informed of the product so that there could be a steady demand for the products. This continuous information is provided through advertisement.
3. Helps in making decesion : Customers get the required information types of product available in the market to satisfy their demand their relative advantage or disadvantages, price and utility, etc. On the basis of this information a customer finds it easy to arrive at any decision. Selection becomes essay for him.
4. Educating customers : Advertisement educate people about various products and their diverse uses. It tells consumers about better ways of living there by increasing living standards.
5. Provide Employment : Advertisement is a source of employment for many persons. Making advertising copies dicussion with sponsors, printing the Advertisement etc require the services of many persons.
6. Higher standard of living : It helps to raise the standard of living by educating people, by providing them more job opportunities and facilitating in production on a large scale.

Question 30.
What do you mean by staffing is it a part of Human Resource Management ? Clarify.
Answer:
Staffing : ‘Staffing’is the term used when recruitment and selection, training and development, compensation and relesstion, etc. functions are performed for appointing and retaining managers. According to koontz, O’ Donnell and Weihrich “Staffing is the executive function which involves the recruitment, selection, compensating, training, promotions and retirement of subordinate managers.”

Yes ! It is a part of human resource management. Human resource management is a broad concept. “HRM is the art of processing, developing and maintaining suitable persons to acheive the goals of an organisation in on effective way. It is the way of optimising human competence at the work place. So that the goals of an organisation are accomplished effectively.” According to Ivancevich and Glueck, “HRM is concerned with the most effective use of people to acheive organisational and individuals goals. It is a way of managing people at work, so that they give their best to the organisation.”

Question 31.
“Co-ordination is the essence of management” Explain this statement.
Answer:
Co-ordination is the essence of management : Co-ordination is required at every step of management. It exist with each function of management planning presupposes application of the princeiples of Co-ordination for achieving objective of the fullness, managers have to ensure proper Co¬ordination among various persons and departments.

While establishing the organisational structure Co – ordination among varions positions must be given due consideration. The absence of Co-ordination weakens the effect of authority, responsibility relationship in the organisational structure. Like planning and organizing

Co-ordination has a relevance to other functions of management also. The importance of directing components, viz., communication leadership motivation and supervision increase if the Co – ordination principles have been interwoven with them. Similarly, Co-ordination enhances the importance of staffing & controlling.

Question 32.
Why is delegation necessary for an effective organisation.
Answer:
Delegation of authority is an important function of organisation, it helps in improving the managerial effectiveness. It is essential for effective organisation due to following reasons :

1. Relief to overburdened managers : As the business expand, seniors may become too heaving occupied. They may need the services of someone who can share their burden. They by the remedy by adopting the technique of delegation.
2. Improving in the quality & Quantity of work : When a single person has to do locuminous work the does it at the cost of its quality and quantity. He can take care of both if he shares it with someone. Delegation provides an opportunity to seniors for sharing their work with subordinates.
3. Sources of Enhancing job satisfaction : Delegation provides opportunities of job enlargement and job enrichment to sub-ordinates get more job satisfaction when they get additional challenging assignments.
4. Quick Decision making : Delegation also implies that delegatees will get the authority of decesions making in prescribed field. Since delegates get limited take through delegation they are able to take decesion quickly.
5. Facilitation of organisational Growth : The delegates get an exposure of doing higher level jobs. When organisation expands, the delegatees may he asked to take up the higher level positions resulting due to the expansion of the organisation.
6. Effective Co-ordination : Delegation stream lines the co-ordination and make it more effective.

Question 33.
Define Financial Management and discuss its objectives.
Answer:
Financial Management: If is the process of decision making and implementing it in all respects for the inflows and outflows of funds.
According to weston & Brighan, Financial management is an area of financial decision making, harmonising individuals motive and enterprise goals.
Objective of Financial Management :

(i) Profit Maximisation : Finance manager tries to augment the earning of profit. This may be done by procuring the optimum amount of finance by creating minimum liability on the company and by utilising the finance in the best possible way.

(ii) Wealth Maximisation : Along with the objective of profit maximisation, importance to wealth maximisation should also be attached. Both the objective should be considered side-by-side. In fact, wealth maximisation is increasingly being accepted as the goal of finance function.

Wealth of the company = No. of share X market price pershare
Wealth maximisation is a better goal of finance function since it represents the long term interest of shareholders.

Bihar Board 12th Intermediate Chemistry Model Question Papers, Sample Papers 2019, 2020, 2021 with Answers Pdf free download in Hindi Medium and English Medium.

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Bihar Board 12th Model Papers

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Bihar Board 12th Chemistry Model Question Papers in Hindi Medium

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Bihar Board 12th Intermediate Biology Model Question Papers, Sample Papers 2019, 2020, 2021 with Answers Pdf free download in Hindi Medium and English Medium.

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Bihar Board 12th Accountancy Model Papers

Bihar Board 12th Accountancy Model Question Paper 1 in English Medium

Time : 3 Hours 15 Min
Full Marks: 100

Instructions for the candidates

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. While answering the questions, the candidate should adhere to the word limit as for as practicable.
4. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
5. This question paper has two sections: Section – A and Section – B.
6. 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.
7. In Section – B there are Non-objective type questions. 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 8 Long answer type questions, out of which any 4 of them are to answer. Each question carries 5 marks.
8. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 50 have four options, out of which only one is correct, you have to mark the correct option on the OMR Sheet. (50 × 1 = 50)

Question 1.
Income and Expenditure Account is:
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these.
Answer:
(c) Nominal A/c

Question 2.
Life membership fees received by a club is shown in:
(a) Income & Expenditure A/c
(b) Balance sheet
(c) Cash A/c
(d) None of these
Answer:
(b) Balance sheet

Question 3.
Legacy should be treated as:
(a) A Liability
(b) Revenue receipts
(c) An income
(d) None of these
Answer:
(b) Revenue receipts

Question 4.
In the absence of partnership deed, the partner will be allowed interest on the amount advance to the firm:
(a) 5%
(b) 6%
(c) 9%
(d) 8%
Answer:
(b) 6%

Question 5.
Which one is not the feature of partnership?
(a) Agreement
(b) Sharing of profit
(c) Limited Liability
(d) Two or more than two-person
Answer:
(c) Limited Liability

Question 6.
In the absence of partnership deed, interest on capital will be given to the partners at;
(a) 8%. p.a.
(b) 6% p.a.
(c) 9%
(d) None of these.
Answer:
(b) 6% p.a.

Question 7.
Interest on partners capital is calculated on:
(a) Opening capital
(b) Closing capital
(c) Average capital
(d) None of these
Answer:
(b) Closing capital

Question 8.
Interest payable on the capital of the partners is recorded in:
(a) Profit & Loss A/c
(b) Realisation A/c
(c) Profit & Loss Appropriation A/c
(d) None of these
Answer:
(c) Profit & Loss Appropriation A/c

Question 9.
Change in the partnership agreement resulting in:
(a) Reconstitution
(b) Dissolution of firm
(c) Amalgamation of firm
(d) None of these
Answer:
(a) Reconstitution

Question 10.
Excess of credit side over the debit side in Revaluation Account is a:
(a) Profit
(b) Loss
(c) Receipt
(d) Expense
Answer:
(a) Profit

Question 11.
Revaluation A/c or Profit & Loss adjustment A/c is a:
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these.
Answer:
(b) Real A/c

Question 12.
Generally, the interest on capital is considered as:
(a) An appropriation of profit
(b) An asset
(c) An expense
(d) None of these
Answer:
(a) An appropriation of profit

Question 13.
Goodwill is:
(a) Tangible Asset
(b) Intangible Asset
(c) Current Asset
(d) None of these
Answer:
(b) Intangible Asset

Question 14.
The excess of average profits over the normal profit is called:
(a) Super profit
(b) fixed profit
(c) Abnormal
(d) Normal profit
Answer:
(a) Super profit

Question 15.
The monetary value of the reputation of the business is called:
(a) Goodwill
(b) Super profit
(c) Surplus
(d) Normal profit
Answer:
(a) Goodwill

Question 16.
Profit or Loss on Revaluation is borne by:
(a) Old partners
(b) New partners
(c) All partners
(d) Only two partners.
Answer:
(a) Old partners

Question 17.
Which of the following asset is compulsorily revalued at the time of admission of a new partner:
(a) Stock
(b) Fixed Assets
(c) Investment
(d) Goodwill
Answer:
(d) Goodwill

Question 18.
Share of goodwill brought in cash by the new partner is called:
(a) Assets
(b) Profit
(c) Premium
(d) None of these.
Answer:
(c) Premium

Question 19.
A firm can be voluntarily dissolved by the partners:
(a) On the majority
(b) On 3/4 members decision
(c) On 1/2 members decision
(d) None of these.
Answer:
(a) On the majority

Question 20.
Insolvency of a partner will come under what type of dissolution of a firm?
(a) Dissolution by court
(b) Compulsory Dissolution
(c) On the happening of certain contingencies
(d) None of these.
Answer:
(b) Compulsory Dissolution

Question 21.
On the firm’s dissolution, which one of the following accounts should be prepared at the last?
(a) Realisation Account
(b) Partners capital Account
(c) Bank Account
(d) Partners Loan Account
Answer:
(a) Realisation Account

Question 22.
In the event of dissolution of a partnership firm, the provision for doubtful debts is transferred to:
(a) Realisation Account
(b) Partner’s capital A/c
(c) Sundry debtors Account
(d) None of the above.
Answer:
(b) Partner’s capital A/c

Question 23.
On dissolution, If a partner undertakes to make payment of a liability of the firm, the account to be debited is:
(a) Profit & Loss A/c
(b) Realisation A/c
(c) Partner’s Capital A/c
(d) Bank Account
Answer:
(c) Partner’s Capital A/c

Question 24.
Which of the following is transferred to Realisation A/c:
(a) Balance of cash A/c
(b) Balance of P/L A/c
(c) Creditors
(d) Reserves
Answer:
(c) Creditors

Question 25.
On dissolution of the firm, Loss on realization account is debited to which account?
(a) Cash account
(b) Partner’s capital account
(c) Realisation account
(d) None of these
Answer:
(b) Partner’s capital account

Question 26.
Cash balance shown in the balance sheet is shown on the dissolution of the firm in:
(a) Realisation A/c
(b) Cash A/c
(c) Capital A/c
(d) None of these
Answer:
(a) Realisation A/c

Question 27.
On dissolution of a firm, Bank overdraft is transferred to:
(a) Cash A/c
(b) Bank A/c
(c) Realisation A/c
(d) Partner’s Capital A/c
Answer:
(c) Realisation A/c

Question 28.
On dissolution, goodwill account is transferred to:
(a) Partner’s Capital A/c
(b) Credit side of cash A/c
(c) Debit side of Realisation A/c
(d) Credit side of Realisation A/c
Answer:
(a) Partner’s Capital A/c

Question 29.
On dissolution when a partner takes over an asset, is debited:
(a) Realisation A/c
(b) Partner’s capital account
(c) Cash account
(d) Asset account
Answer:
(b) Partner’s capital account

Question 30.
Unrecorded Liabilities when paid are shown in:
(a) Debit side of Realisation A/c
(b) Debit side of Bank A/c
(c) Credit side of Realisation A/c
(d) Credit side of Bank A/c
Answer:
(a) Debit side of Realisation A/c

Question 31.
Share Allotment Account is:
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal A/c

Question 32.
Which one of the following is the registered capital of the company:
(a) Paid-up capital
(b) Uncalled-up capital
(c) Authorized capital
(d) Issued capital
Answer:
(c) Authorized capital

Question 33.
Dividends are usually paid on:
(a) Authorised capital
(b) Issued capital
(c) Called up capital
(d) Paid-up capital
Answer:
(d) Paid-up capital

Question 34.
Which statement is issued before the issues of shares:
(a) Prospectus
(b) Article of Association
(c) Memorandum of Association
(d) All of these
Answer:
(a) Prospectus

Question 35.
A debenture is a:
(a) Loan certificate
(b) Cash certificate
(c) Credit certificate
(d) None of these
Answer:
(a) Loan certificate

Question 36.
Generally, debentures are:
(a) Secured
(b) Party secured
(c) Unsecured
(d) None of these
Answer:
(c) Unsecured

Question 37.
Rate of Interest on debenture is:
(a) 12% p.a
(b) 20% p.a
(c) Fixed rate
(d) 15% p.a
Answer:
(a) 12% p.a

Question 38.
Parents and copyrights fall under the category of:
(a) Current Assets
(b) Liquid Assets
(c) Intangible Assets
(d) None of these
Answer:
(c) Intangible Assets

Question 39.
Goodwill falls under which category of assets:
(a) Current Assets
(b) Tangible Assets
(c) Intangible Assets
(d) None of these
Answer:
(c) Intangible Assets

Question 40.
Preliminary expenses are shown in the Balance sheet under which head:
(a) Fixed Assets
(b) Reserve and Surplus
(c) Loan & Advances
(d) None of these
Answer:
(c) Loan & Advances

Question 41.
The financial statements of a business enterprise include:
(a) Balance-sheet
(b) P/L account
(c) Cash flow statement
(d) All of the above
Answer:
(d) All of the above

Question 42.
In which meeting of company directors report is presented:
(a) Director’s meeting
(b) Annual General meeting
(c) Manager’s meeting
(d) All of the above
Answer:
(b) Annual General meeting

Question 43.
Which of the following is the limitation of financial analysis:
(a) Window – dressing
(b) Basis of Valuation
(c) Lack of Accuracy
(d) All the above
Answer:
(a) Window – dressing

Question 44.
The term “Current Liabilities” does not include:
(a) Sundry Creditors
(b) Debentures
(c) Bills payable
(d) o/s expenses
Answer:
(b) Debentures

Question 45.
Liquid Ratio is also known as:
(a) Current Ratio
(b) Quick Ratio
(c) Capital Ratio
(d) None of these
Answer:

Question 46.
Debit-Equity Ratio is:
(a) Liquidity Ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Operating Ratio
Answer:
(c) Solvency Ratio

Question 47.
Which of the following is non-operating expense:
(a) Rent
(b) Selling expense
(c) Wages
(d) Loss on sale of machinery
Answer:

Question 48.
The gross profit ratio is the ratio of gross profit to:
(a) Net cash sale
(b) Net credit sale
(c) Closing stook
(d) Net total sale
Answer:
(d) Net total sale

Question 49.
Which activity comes under “Operating Activities”:
(a) Purchase of Land
(b) Issue of Debentures
(c) Issue of Equity share
(d) Cash Sales
Answer:
(d) Cash Sales

Question 50.
Which of the following is not a cash inflow:
(a) Sale of Fixed Assets
(b) Purchase of Fixed Assets
(c) Issue of debentures
(d) Sale of goods for cash
Answer:
(b) Purchase of Fixed Assets

Non-Objective Type Questions

Short Answer Type Questions

Question no. 1 to 25 are short answer type. Answer any 15 questions. Each question carries 2 marks. (15 × 2 = 30)

Question 1.
What is the Receipt & Payment Account?
Answer:
A Receipts and Payments Account is a summary of cash receipts and cash payments relating to a given period. According to William Pickles, “ Receipts and Payments Account is nothing more than a Summary of cash Book over a certain period, analysed and classified under suitable headings. It is the form of account most commonly adopted by the treasurers of societies, clubs, associations, etc. When preparing the result of the year’s working

Question 2.
State two objectives of Receipt & Payment A/c.
Answer:
Following are the two objectives of Receipts and Payments Accounts.

• Receipts and Payments account is prepared to show cash and bank receipts and payments during the period to derive the closing balance of cash and bank.
• It is prepared on the cash basis of accounting.

Question 3.
State any two contents of Partnership deed.
Answer:
Following are the two contents of a Partnership deed:

• The name and address of the firm and its main business.
• The amount of capital to be introduced by Parents.

Question 4.
List any two items which usually appear on the debit side of partners capital Account, when the capital is fixed.
Answer:
Following are the items which usually appear on the debit side of the partner’s capital account, when the capital is fixed:

• Drawings
• Interest on the drawing.

Question 5.
State the circumstances on which reconstitutions of partnership firm can take place?
Answer:
The circumstances on which reconstitutions of partnership firm can take place are as below:

• Change in the profit-sharing ratio among the existing partners.
• Admission of a new partner.
• Retirement of an existing partner.
• Death of a partner.
• The amalgamation of two (or more) partnership firms.

Question 6.
What is the difference between sacrifice ratio & gaining Ratio?
Answer:
Difference between sacrificing ratio and Gaining ratio

Question 7.
Why Revaluation A/c is prepared on the admission of a partner?
Answer:
Revaluation account is a nominal account prepared for the purpose of distributing and transferring the profit or loss arising out of increase or decrease in the book value of assets and/or liabilities of the partnership firm at the time of change in profit sharing ratio, admission of a partner, the retirement of a partner as well as at the time of death of a partner.

Question 8.
How would you calculate the amount payable to the retiring partner?
Answer:
Considering the following point, we can calculate the amount payable to the retiring partner.
(i) The entire amount can be paid in cash.
(i) If fund available:
Journal Entry:
Retiring partner’s capital A/c … Dr.
To Cash A/c
(ii) If the loan is taken from the bank:
(a) Bank or cash A/c … Dr.
To Bank loan A/c
(b) Retiring partner’s capital A/c … Dr
To Bank or Cash A/c
(ii) By transferring capital Balance into Retiring partner’s loan Account:
Journal Entry:
Retiring Partner’s Capital A/c … Dr.
To Retiring Partner’s Loan A/c
(iii) Payment partly in cash and partly by transferring to loan A/c.
Journal Entry:
Retiring Partner’s Capital A/c … Dr
To Cash A/c
To Retiring Partner’s Loan A/c
(iv) Payment of Retiring partner’s loan.in Instalments.
Journal Entry:
(a) Interest A/c … Dr.
To Retiting partner’s Loan A/c
(b) Retiring Partners’s Loan A/c … Dr
To Cash or Bank A/c
(c) Profit and Loss A/c … Dr
To Interest A/c

Question 9.
What are the methods of calculating the deceased partner’s share in the profit of the firm up to the date of death?
Answer:
Following are the method of calculating the deceased partner’s share in the profit of the firm up to the date of death.

• On the basis of time
• On the basis of turnover or sales.

Question 10.
State any two bases on which a court can pass an order for dissolution of the firm.
Answer:
Two bases on which a court can pass an order for dissolution of the firm are mention below.

• A partner becoming of unsound mind.
• On misconduct of a partner affecting business.

Question 11.
Give any two objectives of preparing Realisation A/C.
Answer:
Following are the two objects of preparing realisation Account.

• Realisation account is prepared for disposing of all the assets of the firm and making payment to all the liabilities and dissolution expenses.
• Realisation account is prepared to find out the profit or loss on realisation of assets and payment of liabilities.

Question 12.
What is meant by Government Company?
Answer:
A government company is a company registered under the Indian Companies Act in which not less than 51% of paid-up share capital is held by the Central Government or State government or partly by Central government partly by one or more State government.

Question 13.
What is meant by the issue of shares at a premium?
Answer:
A company issues its shares at a premium; when the price at which it sells the shares is higher than their par value. This is quite common since the par value is typically set a minimal value such as Rs. 10 per share. The amount of the premium is the difference between the par value and the selling price.

Question 14.
State two provisions of the companies Act, 2013 for the issue of shares at a discount.
Answer:
When shares are issued at a price less than their face value it is said they have been issued at discount.
According to section 53:

• Except as provided in section 54 of the Indian Companies Act, 2013, a company shall not issue shares at a discount.
• Any shares issued by a company at a discounted price shall be void.

Question 15.
State two purposes for which security premium amount can be used by a company.
Answer:
Following are the two purpose for which security premium amount can be used by a company.

• Issuing fully paid bonus shares to the members.
• Writing off the Preliminary expenses of the company.

Question 16.
How would you treat discount on issue of debentures?
Answer:
When debentures are issued at a discount the amount of discount is debited to Discount on issue of Debentures is a capital loss and is normally recorded at the time of allotment money due.
Discount or loss should be written off as early as possible but within the loan period.

Question 17.
Name out the ways of redemption of debentures.
Answer:
Methods or way of redemption of debentures are as follow:

• Lump-sum payment on Maturity.
• The draw of lots or Annual drawings payments in instalments.
• Purchase of own Debentures in the open market.
• Redemption by conversion in shares or Debentures.

Question 18.
What are the elements of financial statements?
Answer:
Elements of financial statements are as follow.

• Assets
• Liabilities
• Equity
• Income
• Expenses.

Question 19.
What are the limitations of Financial Statements?
Answer:
Limitations of financial statement are as follow:

• Based on historical data.
• Based on Traditions and conventions.
• Ignore Qualitatitave Aspect.
• Ignore price level changes.
• Scope of Manipulations.
• Influenced by Personal Judgements.
• Artificial view.

Question 20.
State two objectives of Financial Statement Analysis?
Answer:
Following are the two objectives of Financial Analysis:

• To determine the value of the business.
• To determine the value of goodwill.

Question 21.
State the two utility of Comparative financial statement.
Answer:
Following are the two utility of comparative financial statements.

• Easy comparison.
• Indicate the trend of progress.

Question 22.
What is Profitability Ratio?
Answer:
Profitability refers to the ability of a business to earn a profit. It shows the efficiency of the business. These ratios measures the profit earning capacity of the company. Profitability has a direct link with sales. This is why we calculate these ratios on the basis of sales.

Question 23.
Name the two importance of Ratio – Analysis.
Answer:
Importance of Ratio Analysis are as below:

• Accounting ratios make the figures simple and understandable.
• Accounting ratios facilitate comparative analysis of the performance.

Question 24.
Explain the uses of the cash flow statement.
Answer:
Following are the uses of the cash flow statement:

• Cash flow statement aims at high lights the cash generated from operating activities.
• Cash flow statement helps in planning the repayment of loan schedule and replacement of fixed assets etc.
• Cash is the centre of all financial decisions. It is used as the basis for the projection of future investing and financing plans of the enterprise.
• Cash flow statement helps in the efficient and effective management of cash.

Question 25.
What is meant by cash flow from operating activities?
Answer:
Cash flows from operating activities are the cash flows from the principal revenue-producing activities of the enterprise.

Long Answer Type Questions

Question No. 26 to 33 are long answer type. Answer any 4 questions. Each question carries 5 marks. (4 × 5 = 20)

Question 26.
A Rotary Club has kept its accounts on a cash basis and figures for the last year are given below. Prepare Receipts & Payments Account for the year.
Answer:
Receipts and payments Account

Question 27.
How is income and Expenditure Account prepared from Receipts and Payments Account?
Answer:
Income and expenditure are prepared from receipts and payment account and additional information mention below. Step involved in the preparation of Income and expenditure account following is the steps to be taken care while preparing income and expenditure account from receipts and payment A/c.

• Step – 1: Include all items of revenue receipts and expenses, on the respective side of the account.
• Step – 2: Ensure that no items of capital incomes and expenses are included in this account.
• Steps – 3: Also, adjustment for amounts prepared and outstanding, with respect to each item will have to be made.
• Step – 4: Further, items included in receipts and payment account, depreciation, provisions, and profit or loss on the sale of assets will have to be included in this account.
• Steps – 5: Finally, after putting down all items of revenue and expenses. You will get a balance. The resulting balance will then reveal the surplus or deficit for the period.

Question 28.
A and B are equal partners in a firm. On 1st January 2018, their capital respectively is Rs. 13000 and Rs. 11000. They admit C a partner for 1/4 share of the firm. This new partner brought his capital on the basis of the combined capital of A & B Adjust the old partners capital account according to the new profit sharing ratio.
Answer:
The combined capital of A and B = Rs. 13,000 + 11,000 = 24,000
C’s share in profit = 1/4
Let the profit of the firm be 1, then
Combined share of A and B = \(1-\frac{1}{4}=\frac{5}{4}\)
Reciprocal of \(\frac{5}{4}=\frac{4}{5}\)
Therefore, the total capital of the firm = Rs. 24000 × \(\frac{5}{4}\) = 30,000
C’s share in total capital = 30,000 × \(\frac{1}{4}\) = 7500
C’s share in capital on the basis of combined capital of A and B = 24,000 × \(\frac{1}{4}\) = 6000

Question 29.
Describe the methods of payment of the amount due to a retiring partner?
Answer:
Following are the adjustment at the time of retirement of a partner. On the retirement of a partner, there is a change in the relations of the partners and reconstitution of the partnership firm. An existing partner leaves the firm and remaining partners continue in the firm under the fresh agreement. Following are the various matters that need adjustment at the time of retirement of a partner.

• Changing in profit – sharing Ratio.
• Accounting Treatment of Goodwill.
• Revaluation of Assets and Liabilities.
• Distribution of Accumulated profits (Reserve) and Losses.
• Joint Life (Insurance) Policy.
• Calculation of Total Amount Payable to Retiring Partner.
• Statement of the Total Amount Payable to Retiring Partner.
• Adjustment of capitals.

Question 30.
What Journal entries will you pass in case of dissolution of the partnership firm?
Answer:
Journal entries at the time of Dissolution of a firm are the following:

Question 31.
Pass the necessary journal entries for the following transactions on the dissolution of the firm of P and Q after the various Assets (other than cash) and outside liabilities have been transferred to Realisations A/C:

1. Bank loan Rs. 12,000 paid.
2. Stock worth Rs. 16,000 was taken over by partner Q.
3. Partner P paid a creditor Rs. 4,000
4. Assets not appearing in the books of account realized Rs. 1200.
5. Expenses of Realisation Rs. 2,000 paid by partner Q.

Answer:

Question 32.
A company earns a gross profit of 20 % on cost. Its credit sales are twice its cash sales. If the credit sales are Rs. 4,00,000, Calculate the gross profit of the company.
Answer:
Credit sales = 4000,000
Cash sales (1/2 of credit sales ) = 200,000
Total sales = 600,000
We know that 20% of cost = 16.67 % of sales
Gross profit = \(\frac{600,000 \times 16.67}{100}\) = 100,020

Question 33.
Compute the “cash from operating activities” by Indirect method from the following details.

Answer:
Calculation of cash flow from operation.

Bihar Board 12th Entrepreneurship Model Papers

Bihar Board 12th Entrepreneurship Model Question Paper 4 in English Medium

Time: 3 Hours 15 Min
Marks: 70

Instructions for the candidates:

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 35 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/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
6. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 Long answer type questions, out of which any 3 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 35 has four options provided out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each question carries 1 (one) mark. (35 × 1 = 35)

Question 1.
Project Appraisal is a /an
(a) Export Analysis
(b) Expert Analysis
(c) Profitable Analysis
(d) None of these.
Answer:
(c) Profitable Analysis

Question 2.
Management is an art of
(a) doing work oneself
(b) taking work from others
(c) both for doing work oneself and taking work from others
(d) none of these.
Answer:
(b) taking work from others

Question 3.
Risk Capital foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 4.
Out of the following which is the method of quality control?
(a) Inspection method
(b) Statistical Quality Control Method
(c) Both (a) and (b)
(d) Neither (a) nor (b).
Answer:
(c) Both (a) and (b)

Question 5.
Project identification deals with
(a) viable product idea
(b) logical opportunity
(c) effective demand
(d) none of these.
Answer:
(b) logical opportunity

Question 6.
Duty of Entrepreneur is
(a) profit charging
(b) tax evasion
(c) environmental pollution
(d) none of these
Answer:
(a) profit charging

Question 7.
The best example of variable cost is
(a) Interest on capital
(b) Material cost
(c) Wealth tax
(d) Rent
Answer:
(b) Material cost

Question 8.
Responsibility of the entrepreneur is
(a) towards Society
(b) towards Government
(c) towards Environment
(d) all of these.
Answer:
(d) all of these.

Question 9.
Telephone expense is
(a) fixed
(b) variable
(c) semi-variable
(d) none of these.
Answer:
(c) semi-variable

Question 10.
IDBI was established in the year.
(a) 1944
(b) 1954
(c) 1964
(d) 1974
Answer:
(c) 1964

Question 11.
Element affecting growth rate is
(a) Competition
(b) Change in technology
(c) Creativity
(d) All of these.
Answer:
(a) Competition

Question 12.
Integration means
(a) expanding internally
(b) expanding externally
(c) expanding internally and externally
(d) none of these
Answer:
(c) expanding internally and externally

Question 13.
Naked debentures are
(a) fully secured
(b) partly secured
(c) unsecured
(d) none of these.
Answer:
(c) unsecured

Question 14.
The maximum wide scope is of
(a) brand
(b) labelling
(c) packaging
(d) trademark.
Answer:
(a) brand

Question 15.
Management is
(a) Art
(b) Science
(c) Both Art and Science
(d) None of these.
Answer:
(c) Both Art and Science

Question 16.
Labelling is
(a) compulsory
(b) necessary
(c) voluntary
(d) wastage of money.
Answer:
(b) necessary

Question 17.
Dividend is
(a) Net profit
(b) Approximation of profit
(c) Reserve fund
(d) Part of undistributed profit.
Answer:
(d) Part of undistributed profit.

Question 18.
Public deposit is the source of
(a) short-term finance
(b) long-term finance
(c) middle-term finance
(d) social investment.
Answer:
(a) short-term finance

Question 19.
IFCI was established in the year
(a) 1939
(b) 1948
(c) 1950
(d) 1956
Answer:
(d) 1956

Question 20.
Closing stock is
(a) source of fund
(b) application of fund
(c) no flow of fund
(d) none of these
Answer:
(a) source of fund

Question 21.
Ideal Current Ratio is
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 4 : 4
Answer:
(a) 2 : 1

Question 22.
Long-term loan bears
(a) a fixed rate of interest
(b) flexible rate of interest
(c) zero rates of interest
(d) none of these
Answer:
(a) a fixed rate of interest

Question 23.
Current ratio is
(a) Balance Sheet ratio
(b) Profit & Loss ratio
(c) Mixed ratio
(d) none of these
Answer:
(a) Balance Sheet ratio

Question 24.
Venture capital through firstly originated in
(a) India
(b) England
(c) America
(d) Japan.
Answer:
(d) Japan.

Question 25.
For business, marketing is
(a) compulsory
(b) necessary
(c) unnecessary
(d) luxury.
Answer:
(a) compulsory

Question 26.
Marketing expense is chargeable on
(a) industry
(b) businessmen
(c) consumers
(d) all of these.
Answer:
(c) consumers

Question 27.
Factor affecting the product design is in
(a) two parts
(b) four parts
(c) three parts
(d) none of these.
Answer:
(a) two parts

Question 28.
What does the break-even point show?
(a) Profit
(b) Loss
(c) Neither profit nor loss
(d) None of these.
Answer:
(c) Neither profit nor loss

Question 29.
A project is
(a) Cluster of activities
(b) Single activity
(c) Group of innumerable activities
(d) None of these
Answer:
(a) Cluster of activities

Question 30.
Aspects(s) of project evaluation is /are:
(a) Technical evaluation
(b) Financial evaluation
(c) Managerial evaluation
(d) All of these
Answer:
(d) All of these

Question 31.
Planning is:
(a) Goal-oriented
(b) Objective oriented
(c) Mental process
(d) All of these
Answer:
(c) Mental process

Question 32.
Subsidy is:
(a) Discount
(b) Concession
(c) Repayment
(d) none of these
Answer:
(b) Concession

Question 33.
Incentives are not concerned with
(a) Rebate
(b) Exemption from tax
(c) Provision of seed capital
(d) Lump-sum payment
Answer:
(d) Lump-sum payment

Question 34.
Printing expenses are:
(a) Fixed
(b) Variable
(c) Semi-variable
(d) None of these
Answer:
(c) Semi-variable

Question 35.
The best example of variable cost is:
(a) Interest on capital
(b) Material cost
(c) Wealth tax
(d) Rent
Answer:
(b) Material cost

Non-Objective Type Questions

Short Answer Type Questions

Question No. 1 to 18 are short answer type. Answer any 10 questions. Each question carries 2 males. (10 × 2 = 20)

Question 1.
What are the sources of short-term finance?
Answer:
Sources of short term finance:

• Bank sources
• Secured loans
• On the basis of inventory
• Bridge finance
• On the basis of receivables
• Bank overdraft
• Unsecured loan
• Revolving credit control
• Cash Credit.

Question 2.
What is the promotion of business?
Answer:
Promotion of a business is referred to that work which is done with the help of such factors i.e. labour, raw materials, money and machines.

Question 3.
Define cost.
Answer:
According to I.C.M.A. London, “Cost is the amount of expenditure (actual or notional) incurred or attributable to a specified thing or activity.”

Question 4.
Write in brief about quality control of export products.
Answer:
Maintaining quality control necessary for all industrial units. However, this is greatly necessary for manufacturing in the small scale sector because these manufacturers employ human resources to a greater extent in the manufacturing process. But because of various limitations quality control is maintained to a very limited extent. These factors are related to a lack of finance technical competency and absence of proper management.

Question 5.
What is the importance of the environment?
Answer:
Following are the importance of the environment:

• In searching of opportunities
• In maintaining the existence
• In getting success.

Question 6.
What is the role of planning in effective control?
Answer:
Importance of planning for a large business enterprise:

• Planning makes objectives clear and specific: The planning exercise makes the goals clear and specific because it begins with the determination of objectives.
• Planning provides directions: Due to planning employees and managers know how their activities relate to organisational goals.
• Planning reduces the risk of uncertainty: Planning helps to reduce the risks associated with uncertainties. In the process of planning attempts is made to look into the future and predict it.
• Planning facilitates decision-making by the manager: Planned targets are indicators on the basis of which alternative courses of action are considered.

Question 7.
What is the after-sale service?
Answer:
After sale-service means that service which is provided continuously for looking after the product after the sale.

Question 8.
Why is time boundness essential in a project?
Answer:
Project is a written account of various activities undertaken by a firm or entrepreneurs and their technical, commercial and social feasibilities. Project is made after analysis of essential document therefore there is a time limit for making project because of the project is made for particulars time and subject.

Question 9.
What do you mean by the cycle of working capital?
Answer:
Availability of enough working capital is indicative of liquidity of business and capacity to make prompts payments. Working capital is needed for making payment of day to day expenditure for meeting current liabilities and for availing benefit of cash discounts.

Question 10.
Mention any three factors affecting the growth.
Answer:
Following are the factors affecting the growth:

• Competition
• Change in technology
• Consumer trends
• Creativity
• Innovations.

Question 11.
Define Entrepreneurship and state its two features.
Answer:
As per thinkers of this viewpoint, entrepreneurship is the promotion of business and industry, organisation and capacity to undertake risks.
Definition: According to Horton Evans, “The entrepreneur is a person or group of persons who has the task of determining the kind of business to be operated.” According to forest frontz, “The entrepreneur is more than a manager. He is an innovator arid promotor as well.
Following are the features of entrepreneurship:

• Taking risks
• Profit oriented
• Group of persons
• Promoting business.

Question 12.
What is market feasibility?
Answer:
Market feasibility means selection of good market for enterprises.

Question 13.
How do entrepreneurs differ from employees?
Answer:
Entrepreneurs differ from employees are explaining by the following points:
Entrepreneur:

• An entrepreneur is a person who takes the risk to set-up an enterprise.
• The entrepreneur always face risk of profit or loss.
• An entrepreneur takes decision.

Employee:

• An employee is that person who is appointed by an entrepreneur for his help.
• The employee never face the risk of profit or loss.
• An employee does not make a decision.

Question 14.
What is the plant layout?
Answer:
Plant layout refers to that work which is done for setting up the plant and placement of the plant and machinery.

Question 15.
What is the role of planning in effective control?
Answer:
To facilitate control: By means of judicious planning, every manager executive tries to enforce his control to the best of his capacity over his subordinates in terms of their performance. In order to make the planning effective and meaningful, the performance of the subordinates can be adequately measured. Not only this even budget is an organ of planning and also a tool of control. Moreover,it also strengthens the administrative control. In America, once a high -profit administrator during the course of his conversation with one of his friends remarked that since 5 o’clock till the time of leaving the office .whatever had happened is no matter of anxiety because he could not help change it and he would think about what was likely to happen the following day and the following year because doing something on that account on that account lay in his power.

Question 16.
Why it is understood that entrepreneurship is active creativity.
Answer:
Entrepreneurship is creative in the sense that it involves the creation of value. By combining the various factors of production, entrepreneurs produce goods and services that meet the needs and wants of society. Every entrepreneurial act results in income and wealth generation. Even when innovations destroy the existing industries.

Entrepreneurship is creative also in the sense that it involves innovation—the introduction of new products, the discovery of new market and sources of supply of inputs, technological break thoughts as well as the introduction of newer organisational forms for doing things better, cheaper, faster and in the present context, in a manner that causes the least harm to the environment. It is possible that entrepreneurs in developing countries may not be pioneering innovative in introducing path-breaking, radical innovations.

Question 17.
Give three differences between shares and debentures.
Answer:
Difference between shares and debentures:
Share:

• A share is a symbol of ownership. It represents a portion of the capital.
• It is ownership security.
• A shareholder enjoys the voting right.
• The dividend is paid on shares. It is an appropriation of profit
• A share is unsecured.
• Shares can not be converted.

Debenture:

• A debenture is the symbol of loan. It represents the debt of a company.
• It is editorship security.
• A debenture holder does not have voting right.
• Interest is paid on debentures.lt is a charge against profit.
• A debenture is secured on the fixed or floating charges.
• Debentures can be converted into shares.

Question 18.
What is project identification?
Answer:
Before selling up of any enterprises, to searching for profitable opportunities and effective formation of the project by the entrepreneur is called project identification.

Question 19.
Is management in Art or Science?
Answer:
Management is both art and science. Management in the form of science, provides necessary guidance to managers because of its practical utility and application (in the form of principles) and management in the context of art helps the management to face very situation (by adopting the best possible way to do any work). Hence, it is logical to call management science as well as art.

Management is both an art and science, as well and are so well-knitted, that are inseparable. As an art, the management refers to behavioural sense, efficiency, skill, constructive thoughts ideas and development through practice etc.and in form of science, it refers to cause and effect, experimentation of rules, ability and a sense of forecast, etc. Thus, management is a dichotomy of art and science.

Question 20.
State one objective of project planning.
Answer:
The objective of the project report: To the evolution of investment opportunities.

Question 21.
What is Marketing Mix?
Answer:
Marketing mix implies a combination of all marketing elements or ingredients so that the objectives of the enterprise may be realised. The various elements of the mix are product, price, place and promotion.
According to Borden.” marketing mix, is the appointment of effort the combination the designing and the integration of the elements of marketing into a programme or mix which on the basis of the marketing forces, will best achieve the objectives of an enterprise at a given time.”

Question 22.
What is Gestation period?
Answer:
Gestation period means such period before starting of any enterprises. In other words, Planning period before setting up new enterprises.

Question 23.
What are the opportunity cost and joint cost?
Answer:
Austrian economists modified the concept of real cost and presented the concept of opportunity cost. Resources are limited to unlimited needs and hence, the production of one good means the sacrifice of the other. According to Benham, “The opportunity cost of anything is the next best alternative that could be produced instead by the same factors or by an equivalent group of factor costing the same amount of money. “Opportunity cost of a factor refers to its value available in its next best alternative use. The total expenses made by a firm for producing a particular quantity of the commodity is known as the total cost. In short-run, total cost includes both fixed as well as variable cost while in the long run, total cost includes the variable cost.

Question 24.
Give the formula of B.E.P.
Answer:
BEP = \(\frac{F \times S}{S-V}\)
Where, F = fixed cost
S = Projected sales
V = Variable cost

Long Answer Type Questions

Question No. 19 to 24 are Long answer type. Answer any 3 questions. Each question carries 5 marks. (3 × 5 = 15)

Question 19.
Why is the market assessment necessary for entrepreneurship?
Answer:
Market Assessment: The demand for products or services and the supply, apart from such factors, depends on various other factors,e.g., quality of the product, source of supply and tools of distribution. While assessing a market an entrepreneur must take care of the following things:
(i) Demand: The estimate of the demand must be determined after the product identification. While forming an estimate of the demand, the size of the market or the area should be taken care of in which the product is to be sold.

(ii) Supply and competition: The aspect of supply of the merchandise is of paramount importance at the time of market assessment. Supply refers to the replenishment of the goods from all resources. Even the imminent supply of goods and its resources should also be taken care of. The consideration of demand and supply should always be kept in mind. Generally, there is always a competition in terms of supply of almost all the products.

(iii) Cost and Price of the product: As already indicated that in determining the identity of a product, its cost is a major factor. On the basis of the cost of a product, the price is determined and this factor must be viewed in the wake of the prices of other competitive products.

(iv) Project Innovation and change: To facilitate the process of market analysis it becomes essential to look for innovative changes and to study the scope which is the job of an entrepreneur. It is also imperative to understand the technical advantages of such innovative change and its impact on the product reliability cost and its price.

Question 20.
What is the importance of quality control?
Answer:
Quality control refers to the finer characteristics of a product for the acquisition of which the control over the human resources and manufacturing conditions and factors, is acquired which can influence the finer qualities of the product.

All the ingredients required for the manufacturing of a product are, directly or indirectly, procured from nature itself and affect their characteristics due to some natural reasons, on the other hand, the manufacturing conditions like temperature, moisture, dust, impurity in air, movement or disturbance in the types of equipment, and wear out machines, etc, can bring about some changes in the manufacturing processes such, the right composition and ensure an authentically quality product, complete control over such conditions must be taken care of by which the quality may not get affected. According to G.J. Deshmund, “Quality control is a scientific technique the objective of which is to enhance the industrial or manufacturing efficiency which must satisfy the projected standards.”

Question 21.
Why is it essential to study the environment for an entrepreneur?
Answer:
The process of environmental scanning and analysis is very important to an entrepreneur. The evaluation of the existing changing circumstances the forecasting and the consequent impacts need to be assessed by an entrepreneur prior to determining his policies and planning and their successful implementation.

It is essential to evaluate and analyse the consequences of the changing business environment prior to giving a tangible shape to the planning and policies. The technical innovation, new social values problems of the community product market conditions etc. must be subjected to study which is instrumental in converting strategies and planning into reality. The competitive environment and its consideration is also an integral part of environmental scanning. To plan or conceive the counter strategies in view of the competitive threats, the environmental study and analysis is the prerequisite in this regard by a close study and a survey of the competitive threats, the environmental.

Question 22.
What are the main reason for management importances?
Answer:
Following are the reasons that are why management is important.

• Maximum results with minimum resources: Management tries to secure the maximum results through the use of minimum efforts and resources.
• The realisation of personal objectives: Some industrial concerns are doomed on account of strikes and lockouts. Such situations mainly arise when there is his management on the part of managers. Proper management visualises the situation and takes timely action in order to avoid any untoward happening.
• Economic growth: Management is a vital force for boosting the economic growth of a country. Until recent; it was thought that economic growth is mainly due to technology education and capital.
• Protection of investors interests: Most of the organisations are run by employees managers. They look after the interest of investors viz. Shareholders, debenture holders etc.

Question 23.
What are the two objectives of financial planning?
Answer:
Financial planning is the essential preparation of a financial blueprint of an organisation’s future operations. The objective of financial planning is to ensure that enough funds are available at the right time. It enables the management to foresee the fund requirements both the quantum as well as the timing. Likely shortage and surpluses are forecast so that necessary activities are taken in advance to meet those situations. Thus, financial planning strives to achieve the following objectives:

• To ensure availability of funds whenever these are required: This includes a proper estimation of the funds required for different purposes such as for the purchase of long-term assets or to meet day-to-day expenses of business etc.
• To see that the firm does not raise resources unnecessarily: funding is almost as bad as inadequate funding. Even if there is some surplus money, good financial planning would put it to the best possible use so that the financial resources are not left idle and don’t unnecessarily add to the cost.

Question 24.
Explain the various steps including in controlling process.
Answer:
Controlling is a systematic process involving the following steps:

• Step-I: Setting performance standards: The first step in the controlling process is setting up of performance standards. Standards are the criteria against which actual performance would be measured. Standards can be set in both quantitative as well as qualitative terms.
• Step-II: Measurement of actual performance: Once performance standards are set the next step is the measurement of actual performance. There are several techniques for the measurement of performance. These include personal observation, sample checking, performance reports, etc.
• Step-III: Comparing actual Performance with standards: This step involves a comparison of actual performance with the.standard. Such a comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms.
• Step-IV: Analysing Deviations: Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations. Critical point control and management by exception should be used by a manager in this regard.
• Step-V: Taking corrective action: The final step in the controlling process is taking corrective action. No correction action is required when the deviations are within acceptable limits.

Bihar Board 12th Biology Model Papers

Bihar Board 12th Biology Model Question Paper 1 in English Medium

Time : 3 Hours 15 Min
Total Marks : 70

Instructions for the candidates:

1. Candidates are required to give answers in their own words as far as practicable.
2. Figures in the right-hand margin indicate full marks.
3. While answering the questions, the candidate should adhere to the word limit as for as practicable.
4. 15 Minutes of extra time has been allotted for the candidates to read the questions carefully.
5. This question paper is divided into two sections: Section – A and Section – B
6. In Section – A, there are 35 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with blue/black ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/Liquid/ Blade/Nail on OMR Sheet otherwise result will be treated as invalid.
7. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 long answer type questions, out of which any 3 of them are to be answered. Each question carries 5 marks
8. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 35 have four options provided out of which only one is correct. You have to mark your selected option on the OMR-Sheet. Each question carries 1 (one) mark. (1 × 35 = 35)

Question 1.
Scientific/Botanical name of Pear is
(a) Pyrus communis
(b) Pisum sativum
(c) Pyrus malus
(d) None of them
Answer:
(a) Pyrus communis

Question 2.
Reproduction by Budding occurs in which of the followings:
(a) Yeast
(b) Hydra
(c) Both A and B
(d) Amoeba
Answer:
(c) Both A and B

Question 3.
Vegetative propagation is carried out by means of Rhizome in
(a) Potato
(b) Ginger
(c) Turmeric
(d) B and C both
Answer:
(d) B and C both

Question 4.
Which among the following is an example of Bulb?
(a) Ginger
(b) Potato
(c) Onion
(d) Radish
Answer:
(c) Onion

Question 5.
Which type of Endosperm is found in Angiosperms?
(a) Haploid
(b) Diploid
(c) Triploid
(d) None of these
Answer:
(c) Triploid

Question 6.
In which of the followings Pollinia are found?
(a) Calotropis
(b) Pea
(c) Gram
(d) Grass
Answer:
(a) Calotropis

Question 7.
Which among the following is an example of Parthenocarpic fruit?
(a) Apple
(b) Pear
(c) Banana
(d) None of these
Answer:
(c) Banana

Question 8.
Mammary glands are modified
(a) Endocrine gland
(b) Lachrymal gland
(c) Sweat gland
(d) None of these
Answer:
(c) Sweat gland

Question 9.
Hoemochorial Placenta is found in which among the followings?
(a) Horse
(b) Human being
(c) Rabbit
(d) Dog
Answer:
(b) Human being

Question 10.
The test which is used for study of genetic disorders in a Foetus is called as
(a) Angiogram
(b) Laparoscopy
(c) Amniocentesis
(d) Clotting test
Answer:
(c) Amniocentesis

Question 11.
Cuscuta is
(a) Epiphytes
(b) Root Parasite
(c) Total stem parasite
(d) Both B and C
Answer:
(c) Total stem parasite

Question 12.
Which among the following is an example of Hydrophytes?
(a) Lotus
(b) Hydrilla
(c) Trapa
(d) All of these
Answer:
(d) All of these

Question 13.
Mutations can be induced by
(a) Gamma radiation
(b) Infra-red radiation
(c) Ethylene
(d) IAA
Answer:
(a) Gamma radiation

Question 14.
How many genes are responsible for ABO system of blood group in humans?
(a) one
(b) two
(c) three
(d) four
Answer:
(c) three

Question 15.
What is the distance between consecutive two nucleotides of B-DNA?
(a) 2.7 A
(b) 3.4 A
(c) 3.32 A
(d) 3.7A
Answer:
(b) 3.4 A

Question 16.
Which among the following is termination codon?
(a) AUG
(b) GUG
(c) UAA
(d) AAA.
Answer:
(c) UAA

Question 17.
The characteristic feature of DNA double helix is
(a) Complementary & anti-parallel
(b) Always circular
(c) Parallel
(d) All of these
Answer:
(a) Complementary & anti-parallel

Question 18.
Which among the following is vestigial organs in Man?
(a) Nictitating membrane
(b) Coccyx
(c) Both A and B
(d) Pelvic
Answer:
(c) Both A and B

Question 19.
The bird Archaeopteryx was found in which period?
(a) Triassic
(b) Jurassic
(c) Cretaceous
(d) None of these
Answer:
(a) Triassic

Question 20.
The study of fossils is called as
(a) Entomology
(b) Paleontology
(c) Analogy
(d) Homology
Answer:
(b) Paleontology

Question 21.
Which among the following sequence defines Ribonucleotide?
(a) Ribose sugar + Nitrogenous base
(b) Ribose sugar + Protein
(c) Ribose sugar + Phosphoric acid
(d) Ribonucleoside + Phosphate group
Answer:
(d) Ribonucleoside + Phosphate group

Question 22.
Name the organelle which helps in translation.
(a) Lysosome
(b) Ribosome
(c) Spliciosome
(d) Exone
Answer:
(b) Ribosome

Question 23.
Humoral immunity is related to which among the followings?
(a) A-cells
(b) B-cells
(c) T-cells
(d) K-cells
Answer:
(b) B-cells

Question 24.
Which among the following is Causative organism of Typhoid disease:
(a) Bacillus anthracis
(b) Plasmodium vivax
(c) Salmonella typhi
(d) None of these
Answer:
(c) Salmonella typhi

Question 25.
What is common to Earthworm, Mushroom, Dung beetle and Soil mites? They all are
(a) Herbivores
(b) Carnivores
(c) Omnivores
(d) Detritivores
Answer:
(d) Detritivores

Question 26.
Gir forest is famous for
(a) Giraffe
(b) Cheetah
(c) Deer
(d) Lion
Answer:
(b) Cheetah

Question 27.
What are the types of food chains in an Ecosystem?
(a) Grazing
(b) Detritus
(c) Both A and B
(d) None of these
Answer:
(c) Both A and B

Question 28.
Which among the following animals become extinct?
(a) White peacock
(b) Dodo
(c) Deer
(d) Tiger
Answer:
(b) Dodo

Question 29.
Which among the following is Xerophytic plant?
(a) Trapa
(b) Casuarina
(c) Opuntia
(d) Both b and c
Answer:
(c) Opuntia

Question 30.
An example of a natural gene cloning vector is-
(a) Circular plasmid
(b) Linear plasmid
(c) Ti-plasmid
(d) Virion
Answer:
(c) Ti-plasmid

Question 31.
Acid rain occurs due to
(a) CO and CO₂
(b) NO₂ and SO₂
(c) CO₂ and NO₂
(d) N₂ and NO₂
Answer:
(b) NO₂ and SO₂

Question 32.
Sharbati Sonora and Kalyan Sona are improved varieties of which among the followings?
(a) Rice
(b) Wheat
(c) Maize
(d) Pulses
Answer:
(b) Wheat

Question 33.
Which bacteria transform milk into curd?
(a) Clostridium
(b) Micrococcus
(c) Lactobacillus
(d) Streptococcus
Answer:
(c) Lactobacillus

Question 34.
Somatic embryogenesis can be done by
(a) Cell culture
(b) Tissue culture
(c) Protoplast culture
(d) Both B and C
Answer:
(b) Tissue culture

Question 35.
RNAi is a method used to control
(a) Ball worms
(b) Nematodes
(c) Bacteria
(d) Fungi
Answer:
(b) Nematodes

Non-Objective Type Questions

Short Answer Type Questions

In this section, there are 18 short answer type question (each carries 2 marks) out of which answers any ten (10) questions. (10 x 2 = 20)

Question 1.
What do you mean by Global Warming? Explain.
Answer:
If there is excess increase in concentration of greenhouse gases in the atmosphere, then it would retain more and more of the infra-red radiation resulting in an enhanced greenhouse effect. Consequently, there will be increase in the global mean temperature which is referred to as Global Warming. It will cause melting of polar ice cap and glaciers. It also causes rise in sea level.

Question 2.
Describe the types of Biodiversity.
Answer:
Following are the types of Biodiversity :

1. Genetic diversity.
2. Species diversity
3. Ecological diversity.

Question 3.
Write an account of four benefits of transgenic animals for human welfare.
Answer:
Following are the benefits of transgenic animals :

1. Transgenic animals are routinely used in the laboratory as models in biomedical research.
2. Transgenic cow produces insulin in milk.
3. Transgenic sheep produces more wool.
4. Transgenic animals can be specifically designed to allow the study of how genes are regulated and how they affect the normal functioning of the body.

Question 4.
What is Binary fission ? Give suitable examples. Show it with the help of diagram.
Answer:
Binary fission reproduction takes place in Amoeba. Amoeba withdraws its pseudopodia and the nucleus divides by mitosis. A constriction appears in the middle and the amoeba gets divided into two daughter amoeba.Binary fission takeks place under favourable conditions.

Question 5.
What are Initiation codons ? Name them.
Answer:
AUG is in itiation codon. AUG stands for methionine, polypeptide chain begins with methionine

Question 6.
What do you understand by Tissue Culture? Illustrate its any two advantages.
Answer:
Plant tissue culture is the maintenance and growth of plant cells, tissues and organs on a suitable culture medium in vitor (in a container e.g., test tube).
Advantages of tissue culture: (i) Tissue culture helps to produce more copies of same plant with desired characters.
(i) It produces some clonal variations.

Question 7.
Draw the sketches of a Zoospore and a Conidium.
Answer:

Question 8.
Mention advantages of self pollination.
Answer:
Advantages :

1. It provides greater chances for pollination of flower.
2. It is economical and pollen grains are not to be produced in enormous quantities to ensure pollination.
3. There is no necessity of flower to be showy and of bright colour to attract pollinators.
4. It preserves the desired and parental charracters of plants.

Question 9.
What are Communicable diseases in human beings ? Describe with suitable examples.
Answer:
Such diseases which arise directly or indirectly through infection of one to another person.
Ex: Tuberculosis, Cholera, Malaria, AIDS, etc.

Question 10.
Write about poultry farm management in brief.
Answer:
It deals with the management and rearing of flows (chickens) ducks, turkeys and pleasants for the production of eggs and meats.
Steps of proper management of poultry farm :

1. Selection of disease free and suitable breeds.
2. Provision of moderate climatic conditions during summer and winter.
3. Provision of nutritions used and water.
4. Providing comfortable, well ventilated, dry and well illuminated poultry house.
5. Regular check up of poultry birds for diagnosis and treatment.

Question 11.
Write expanded form of the following:
(A) G.M.O.
(B) S.T.D.
(C) A.M.P.
(D) V.N.T.R.
Answer:
(A) G.M.O: Genetically Modified Organism.
(B) S.T.D: Sexually Transmitted disease.
(C) A.M.P.: Adenosine Mono Phosphate.
(D) V.N.T.R.: Variable Number Tandem Repeat.

Question 12.
Distinguish between Missing link and Connecting link.
Answer:
Missing link: It is a hypothetical extinct creature halfway in the evolutionary line between modern human beings and their anthropoid progenitors. Connecting link : Connecting link is an organism having characteristics of two different group of organisms, Ex : Peripatus is a connecting link between Annelida and Arthropoda.

Question 13.
Differentiate between :
(A) Ovipary and Vivipary
(B) Oestrius cycle and Menstrual cycle.
Answer:
(A) Ovipary: These are egg laying organisms, Ex: Fish, Frog etc.
Vivipary : Here development of embryo inside the body of parent takes place, leading to live birth of young ones. Ex. Man, Cow , etc.
(B) Oestrius Cycle and Menstrual Cycle : The females of placental mammals exhibits cyclical changes in the activities of ovaries and accessory ducts as well as hormones during the reproductive phase. However in non – primate mammals like cows, sheep, rats, deers, tiger etc, such cyclical changes occurs during reproduction are called oestrius cycle whereas in primates, e.g. monkeys, apes, & humans it is called menstrual cycle.

Question 14.
Write the scientific name of causal organism of Malaria and Elephantiasis diseasse of human being.
Answer:
(i) Malaria : Plasmodium vivax.
(ii) Elephantiasis : Wuchereria bancrafti

Question 15.
What do you understand by noise pollution. Describe its various causes.
Answer:
Noise pollution is the propagation of noise with harmful impact on the activity of human life.
Sources : Washing Machine, Cooler, Vacuum Cleaner etc.

Question 16.
Mention any two applications of GelElectrophoresis in Biotechnology.
Answer:
Applications :
(i) DNA can be separated by Gel electrophoreny.
(ii) Electrophoeny is useful in both the creation and production of vaccines.

Question 17.
Match column A with B:
Answer:

Question 18.
Show diagrammatic representation of clover leaf model of t-RNA molecule and name the four arms.
Answer:

Long Answer Type Questions

There are 6 long answers type question (each carrying 05 marks) out of which answers any three questions. (5 x 3 = 15)

Question 19.
What do you understand by Bio-fertilizer? What are the benefits soil gets from them? Name any two such bio-fertilizers.
Answer:
Bio-fertilisers are organisms that enrich the nutrient quality of the soil. The main sources of bio-fertilisers are microbes (eg. Bacteria, Fungi and Cyano-bacteria). The nodules on the roots of legunminous plants formed by the symbiotic association of Rhizobium, fix atmospheric nitrogen into organic forms, which is used by the plants as nutrient. Other bacteria can fix atmospheric nitrogen while free-living in the soil (eg. Azospirillum and Azotobacter), thus enriching the nitrogen content of the soil.

Fungi are also known to form symbiotic associations with plants (mycohiza). The fungi symbiont in these association absorbs phosphorus from soil and passes it to the plants. Plants having such associations show other benefits also, such as resistance to root-borne pathogens, tolerance to salinity and drought and an overall increase in plant growth and development.

Cyano-bacteria are autotrophic microbes which can fix atmospheric nitrogen, eg. Anabaena, Nostoc, Oscillatoria, etc. In paddy fields, Cyano-batetiar serve as an important bio-fertiliser. Blue green algae also add organic matter to the soil and increases its fertility. Currently, in our country, a number of fertilisers are available commercially in the market and farmers use these regularly in their fields to replenish soil nutrients and to reduce dependence on chemical fertilisers.

Question 20.
Show food-chain in a fresh water pond and illustrate it with the help of diagram.
Answer:

(saprophytic bacteria and fungi)

Question 21.
What do you understand by Mutation? What are their main types and mention its significance in brief.
Answer:
Mutation is defined as change in gene which is heritable.
The abrupt changes may take place in chromosomes, then it is called chromosomal mutation.

Types of Mutation:

1. Somatic mutation: It occurs in somatic cells and it is non-heritable.
2. Germinal mutation: It is found in reproductive cells and is heritable.
3. Spontaneous mutation: Mutation occuring in nature is called spontaneous mutation.
4. Induced mutation: When mutation is produced by mutagenic chemicals or radiations.

Significance:
Role of Mutation in Evolution: Evolution is a slow and continuous process for evolution. The basic necessity is variation. The variation among plants and animals are brought about by mutation.

Question 22.
What do you mean by Cry-protein? It is obtained from which organism? Describe its various uses.
Answer:
Cry proteins are crystalline toxins which are encoded by cry genes. It is obtained by Bacillus touring – genesis bacteria. The bacterium contains these proteins in their inactive form. When the inactive toxin protein is ingested by the insect it gets activated by the alkaline pH of the gut.

Uses of Cry-protein :

1. It protects cotton plants from ball-worms.
2. Many transgenic crops are produced.

Question 23.
What do you mean by Foetal Membrane? Mention its types and explain it in brief.
Answer:
The Foetal membranes are membranes associated with the developing Foetus. The two chorio-amniotic membranes are the amnion and the Chorion which make the amniotic sac surrounds and protects the foetus. The other foetal membranes are the allantois and the secondary umbilical vesicle.

Types of Foetal Membrane :

1. Amnion: The Amnion is a transparent greyish membrane which lines the chorian. It comes to the foetal surface of the placenta and the umbilical cord.
2. Chorion: The chorion is a double-layered membrane formed by the trophoblast and the extraembryonic mesoderm which eventually give rise to foetal part of the placenta.

Question 24.
Write short notes on any two of the following :
(a) Fisheries
(b) Ribosome
(c) Infertility
(d) Red data book.
Answer:
(a) Fisheries: Fisheries is a kind of industry which is associated with fish and other aquatic animals (crab, prawn), and for thier production, processing and marketing management. The revolution in the field of increased production of fishes is called “Blue Revolution.’

(b) Ribosome: Ribosomes are found on the endoplasmic reticulum or scattered in the cytoplasm. These vary from 150-200 A° and are made of nucleo-protein. These are found as free granules or in groups. When these are found in granules, they are called poly-ribosome.

(c) Infertility: Inability to conceive or produce children even after two years of unprotected sexual co-habitation is called infertility.

(d) Red-data book: Red-data book is a catalogue of taxa that are facing the risk of extinction. Its main aim is to give information about the urgency and scale of conservation problem to the public and policymakers.

Bihar Board 12th Accountancy Model Papers

Bihar Board 12th Accountancy Model Question Paper 4 in English Medium

Time : 3 Hours 15 Min
Full Marks: 100

Instructions for the candidates

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. While answering the questions, the candidate should adhere to the word limit as for as practicable.
4. 15 minutes of extra time has been allotted for the candidate to read the questions carefully.
5. This question paper has two sections: Section – A and Section – B.
6. 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.
7. In Section – B there are Non-objective type questions. 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 8 Long answer type questions, out of which any 4 of them are to answer. Each question carries 5 marks.
8. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 50 have four options, out of which only one is correct, you have to mark the correct option on the OMR Sheet. (50 × 1 = 50)

Question 1.
Life membership fees received by a club is shown in
(a) Income & Expenditure A/c
(b) Balance Sheet
(c) Profit & Loss A/c
(d) None of these
Answer:
(b) Balance Sheet

Question 2.
Receipts and- Payments Account is a
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(b) Real A/c

Question 3.
Payment of honorarium to the secretary is treated as
(a) Capital Expenditure
(b) Revenue Expenditure
(c) Cash Expenses
(d) None of these
Answer:
(b) Revenue Expenditure

Question 4.
Outstanding subscription is a/an
(a) Income
(b) Asset
(c) Liability
(d) None of these
Answer:
(b) Asset

Question 5.
Which of the following is not an income?
(a) subscription
(b) Donation
(c) Sale of ticket
(d) Endowment fund
Answer:
(b) Donation

Question 6.
Receipts and Payments Account usually indicates.
(a) Surplus
(b) Capital fund
(c) Debit balance
(d) Credit balance
Answer:
(b) Capital fund

Question 7.
Income and Expenditure Account generally indicates
(a) Surplus/deficit
(b) Cash Balance
(c) Capital Fund
(d) Net Profit/Loss
Answer:
(a) Surplus/deficit

Question 8.
In the absence of partnership deed, the partner will be allowed interest on the amount advanced to the firm
(a) @5%
(b) @6%
(c) @7%
(d) @8%
Answer:
(b) @6%

Question 9.
Which one is not the feature of partnership?
(a) Agreement
(b) Profit-sharing
(c) Limited Liability
(d) Two or more persons.
Answer:
(d) Two or more persons.

Question 10.
In the absence of partnership deed, interest on capital will be given to the partners at
(a) 8% p.a.
(b) 6% p.a.
(c) 9% p.a.
(d) None of these
Answer:
(d) None of these

Question 11.
The Current Account of the partners will be
(a) Debit Balance
(b) Credit Balance
(c) Both
(d) None of these
Answer:
(c) Both

Question 12.
Interest on partners capital is calculated on
(a) Capital in the beginning
(b) Capital at the end
(c) Average capital
(d) None of these
Answer:
(b) Capital at the end

Question 13.
Which of the following is an appropriation of profit?
(a) Interest on loan
(b) Interest on capital
(c) Salary
(d) Rent
Answer:
(b) Interest on capital

Question 14.
In the absence of any partnership agreement, the profits & losses of the firm are divided into
(a) capital ratio
(b) equal ratio
(c) any of these two ratios
(d) none of these
Answer:
(b) equal ratio

Question 15.
In an ordinary partnership, the maximum number of partners is
(a) 20
(b) 10
(c) 15
(d) 5
Answer:
(a) 20

Question 16.
In the absence of a partnership deed, partners are not entitled to receive
(a) Salaries
(b) Commission
(c) Interest on Capital
(d) All of these
Answer:
(d) All of these

Question 17.
The balance of Revaluation Account is transferred to old partners Capital A/c in there
(a) Old Profit or loss Sharing ratio
(b) New profit or loss sharing ratio
(c) Equal ratio
(d) none of these
Answer:
(a) Old Profit or loss Sharing ratio

Question 18.
Revaluation Account is a
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(c) Nominal Account

Question 19.
Sacrifice ratio is
(a) New ratio – Old ratio
(b) Old ratio – New ratio
(c) Gaining ratio – Old ratio
(d) Old ratio – Gaining ratio
Answer:
(a) New ratio – Old ratio

Question 20.
Goodwill is
(a) Tangible Asset
(b) Intangible Asset
(c) Current Asset
(d) None of these
Answer:
(b) Intangible Asset

Question 21.
The executors of a deceased partner will be paid interest on the amount due from the date of death of the partner at
(a) 5% p.a.
(b) 6% p.a.
(c) 7% p.a.
(d) 8% p.a.
Answer:
(b) 6% p.a.

Question 22.
Share of goodwill brought by a new partner in cash is shared by old partners in
(a) Sacrifice ratio
(b) Old ratio
(c) New ratio
(d) All of these
Answer:
(c) New ratio

Question 23.
Balance Sheet prepared after new partnership agreement, assets and liabilities a recorded at
(a) Original value
(b) Revalued figure
(c) Realisable value
(d) Either of (a) or (b)
Answer:
(b) Revalued figure

Question 24.
Which of the following assets is compulsorily revalued at the time of admission of a new partner?
(a) Stock
(b) Fixed Assets
(c) Investment
(d) Goodwill
Answer:
(d) Goodwill

Question 25.
Share Allotment Account is
(a) Personal Account
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal Account

Question 26.
Equity shareholders are
(a) Customers
(b) Owners
(c) Creditors
(d) Debtors
Answer:
(b) Owners

Question 27.
The total amount of liabilities side includes
(a) Authorised Capital
(b) Issued Capital
(c) Paid-up Capital
(d) Subscribed capital
Answer:
(c) Paid-up Capital

Question 28.
Shareholders get
(a) Interest
(b) Dividend
(c) Commission
(d) Profits
Answer:
(b) Dividend

Question 29.
Interest on calls in arrears is charged according to table ‘F’ at
(a) 5% p.a.
(b) 6% p.a.
(c) 7% p.a.
(d) 8% p.a.
Answer:
(d) 8% p.a.

Question 30.
Revaluation A/c is prepared at the time of
(a) Admission
(b) Retirement
(c) Death
(d) All of these
Answer:
(d) All of these

Question 31.
Which one of the following is the registered capital of the company?
(a) Paid-up capital
(b) Uncalled up capital
(c) Authorised capital
(d) Issued capital
Answer:
(c) Authorised capital

Question 32.
Debenture is a
(a) Loan certificate
(b) Cash certificate
(c) Credit certificate
(d) None of these
Answer:
(a) Loan certificate

Question 33.
Debenture holders are the
(a) Customers
(b) Owners
(c) Creditors
(d) Debtors
Answer:
(c) Creditors

Question 34.
Rate of interest on debentures is at
(a) 12% p.a.
(b) 20% p.a.
(c) fixed rate
(d) 15% p.a.
Answer:
(c) fixed-rate

Question 35.
Debentures can be redeemed out of
(a) Profit
(b) Capital
(c) Provision
(d) All of these
Answer:
(d) All of these

Question 36.
The premium on redemption of debentures is a
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) Suspense A/c
Answer:
(b) Real A/c

Question 37.
The premium on redemption of Debenture A/c is
(a) Asset
(b) Expense
(c) Liability
(d) Income
Answer:
(b) Expense

Question 38.
The Current Assets include
(a) Stock
(b) Debtor
(c) Cash
(d) All of these
Answer:
(d) All of these

Question 39.
The dividend is usually paid on
(a) Authorised Capital
(b) Issued Capital
(c) Paid-up capital
(d) Called-up capital.
Answer:
(c) Paid-up capital

Question 40.
Interest on loans is
(a) Operating Expense
(b) Direct Expense
(c) Indirect Expense
(d) All of these
Answer:
(c) Indirect Expense

Question 41.
Interest on calls in arrears is charged according to ‘Table A’ at
(a) 5%p.a.
(b) 6% p.a.
(c) 8% p.a.
(d) 11% p.a.
Answer:
(a) 5%p.a.

Question 42.
Realisation Account is a
(a) Personal A/c
(b) Nominal A/c
(c) Real A/c
(d) None of these
Answer:
(c) Real A/c

Question 43.
Expenses on the dissolution of the firm are called
(a) Realisation expenses
(b) Legal expenses
(c) Loss Expenses
(d) None of these
Answer:
(a) Realisation expenses

Question 44.
X, Y and Z share profits in the ratio of 1/2 : 1/3 : 1/6. Z dies, New ratio of X and Y will be
(a) 3 : 2
(b) 2 : 3
(c) 2 : 1
(d) None of these
Answer:
(a) 3 : 2

Question 45.
The executors of a deceased partner will be a partner will be paid interest on the amount due from the date of death of the partner at
(a) 5% p.a.
(b) 6% p.a.
(c) 7% p.a.
(d) 8% p.a.
Answer:
(b) 6% p.a.

Question 46.
A and B share profits and losses in the ratio of 3 : 1. C is admitted into a partnership for 14 shares. The sacrificing ratio of A and B is
(a) equal
(b) 3 : 1
(c) 2 : 1
(d) 3 : 2
Answer:
(b) 3 : 1

Question 47.
A, B and C are equal partners in the firm. B retires and the remaining partners decide to share profits of the new firm in the ratio of 5 : 4. Gaining ratio will be
(a) 2 : 1
(b) 1 : 2
(c) 4 : 5
(d) 5 : 4
Answer:
(a) 2 : 1

Question 48.
A, B and C are sharing profits in the ratio of 1/2 : 1/3 : 1/6. C retired. Gaining ratio will be
(a) 2 : 1
(b) 2 : 3
(c) 3 : 2
(d) 1 : 2
Answer:
(c) 3 : 2

Question 49.
The decrease in the value of fixed assets is termed as
(a) Depreciation
(b) loss
(c) profit
(d) expense
Answer:
(a) Depreciation

Question 50.
The excess of average profits over the normal profits are called
(a) Super profits
(b) fixed profits
(c) abnormal profits
(d) normal profits
Answer:
(a) Super profits

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 × 2 = 30)

Question 1.
Explain the reason for the valuation of goodwill.
Answer:
Steps for valuation of Goodwill are shown below.
Steps Involved under Average Profit method.
Step 1: Calculate Adjusted (past) Profits or maintainable profit for each of the relevant years (given) after making adjustments relating to abnormal gains, profits, abnormal expenses and losses, incomes from non-trade investments, Proprietor’s remuneration etc.
Step 2: Calculate total profit by adding each relevant year’s adjusted profits.
Step 3: Calculate average profits:
Formula: Average profits = \(\begin{array}{l}
\text { Total Profit } \\
\text { No. of Years }
\end{array}\)
Step 4: Calculate Goodwill as under:
Goodwill = Average profit × No. of years purchase.

Question 2.
X, Y and Z are partners sharing profits in the ratio of 4 : 3 : 2. Y retires. X and Z decided to share profits and losses in future in the ratio of 5 : 4. Calculate gaining ratio.
Answer:

Question 3.
What are the objectives of a financial statement?
Answer:
Following are the objectives of financial statement: The basic objective of financial statements is to assist in decision making. But there many more other objective too.

• To serve as a media of information regarding profitability and financial health of the enterprise.
• To assist in investment decision making.
• To help in making planning.
• To help management in assessing the efficiency of the organisation.
• To provide financial information about changes in net resources arising out of business activities.
• To provide reliable information about economic resources and the obligation of business enterprise.
• To assist in estimating the earning potentials of the business.
• To disclose other information that is relevant to the needs of the users of the financial statements.

Question 4.
A firm’s current ratio is 2.5 : 1 Its liquid ratio is 1.5 : 1 If current liabilities are Rs. 15,000, calculate the amounts of current assets and stock.
Answer:
Calculation of current assets and stocks:

Question 5.
What is Ratio Analysis? Explain the importance of Analysis.
Answer:
Ratio Analysis: Ratio analysis means examination and interpretation of the numerical relationship of two numbers. In financial analysis, a ratio is used as an index or yardstick for evaluating the financial position and performance of a firm According to Myers, Ratio analysis is a study of the relationship among the various financial factors in business.
Importance of Accounting Ratios:

• Accounting ratios make the figures simple and understandable.
• Accounting ratios provide the basis for preparing budgets and also determining the future line of action.
• Accounting ratios facilitate comparative analysis of the performance.
• Accounting ratios help in making decisions from the information provided in the financial statements.
• Accounting Ratios indicate efficiency and the profitability of the business concern.
• The operational efficiency of the business can be ascertained by calculating the operating ratio.

Question 6.
Explain the importance of cash flow statement.
Answer:
Importance and uses of cash flow statement:

• Cash flow statement aims at highlighting the cash generated from operating activities.
• Cash flow statement helps in planning the repayment of the loan schedule and replacement of fixed assets.
• Cash is the centre of all financial decisions. It is used as the basis for the projection of future investment and financial plans of the enterprise.
• Cash flow statement helps in the efficient and effective management of cash.
• The management generally looks into the cash flow statement to understand the internally generated cash which is the best utilised for payment of dividends.
• Cash flow statement is useful as a tool of historical analysis.

Question 7.
Explain the types of cell references in Excel.
Answer:
Types of cell address in excel:

• Relative cell address: A Relative cell reference is one chat when copied from one position to another will adjust the formula cell address to suit the position it is in.
• Absolute cell Address: absolute and relative references are extremely important in Microsoft excel and they ensure that the formulas you are creating actually refer to the correct cells.
• Mixed cell Address: Essentially what this means is that one either the column or the row has the dollar symbol for example & C3.

Question 8.
Define DBMS.
Answer:
Database Management system (DBMS): A DBMS is a database program. Technically speaking it is a software system that asses a standard method of cataloguing, receiving, and running queries on data.

Question 9.
Explain the function of SQL command Create & Select.
Answer:

• Create: Creates a user-defined function in SQL Server and Azure SQL Database.
• Select: It means to select any file and then proceed further work in SQL Database.

Question 10.
Describe various uses of MS-Excel in accounting.
Answer:
Following are the various uses of Ms-Excel in Accounting:

• Select the current column
• Select the current row
• Resize the name box
• Activate Excel’s Ribbon
• View a macro within your workbook
• Subtraction, Summation, Dividing, multiplication
• Navigate the charts and other objects in a workbook.

Question 11.
Define types of SQL (DML & DOL.)
Answer:
Navigate to an existing name range:

1. DDL (Data Definition Language)
2. DML (Data Manipulation Language)
3. DQL (Data Query Language)
4. DCL (Data Control Language)
5. DAC (Data Administration Command)
6. TCC (Transaction Control Command)

Question 12.
Explain Database normalization
Answer:
Database normalisation is a process used to organize a database into tables and columns. The idea is that a table should be about a specific topic and that only those columns which support that topic are included. For example, a spreadsheet containing information about salespeople and customers serves several purposes.

Question 13.
Explain Entity, Attribute and Relation.
Answer:

• Entity: All entities have some attributes or properties that give them their identity.
• Attribute: An attribute is a property of a given entity, for example, Roll No. is a property of entity Student. An attribute instance is a particular property of an individual entity instance.
• Relation: The types of relationship between two entities are represented in E/R diagrams by a certain symbol. An entity may be associated with one none or occurrences of another entity.

Question 14.
Explain the logical function if () in Excel with example.
Answer:
IF: Tests a user-defined condition and returns one result if the condition is TRUE and another result if the condition is FALSE.
Ex. Formula = If (Logical – test, value – if – true, value – if – false.)

Question 15.
Describe in excel the Goal seeks under the what-if analysis tool.
Answer:
By using what: If analysis tools in Microsoft office excel, you can use several different sets of values in one or more formulas to explore the various results.
Goal seeks works with only one variable input value if you want to determine more than one input value, for example, the loan amount and the monthly payment amount for a loan you should instead use that solver add-in.

Question 16.
Describe the different processes of chart generation in excel.
Answer:
Process of chart generation in Excel:

• Step 1: Start Excel by default a blank worksheet opens.
• Step 2: Select the “Insert” tab.
• Step 3: Choose process in the list of chart types.
• Step 4: Add text to the first step in the process.
• Step 5: Customize the appearance of the flow chart.
• Step 6: Add an additional shape for each step in your business process.
• Step 7: Click the “Save” button on the quick access toolbar or press “ctreates” to save the completed business process flow chart before closing the worksheet.

Question 17.
Explain any three financial functions of excel.
Answer:
Three Financial Function of Excell:

• Present value (PV) equivalent to the value of the load or savings today, this function is used to estimate the loan size that could be paid off provided a periodic payment over a provided total number of payments and a provided periodic interest rate.
• Interest rate per period (RATE) equivalent to the interest rate generally monthly. This function is used to calculate the periodic interest rate required to pay off a provided present value with a provided periodic payment and a total number of payments.
• The number of payment periods (NPER) equivalent to the number of payment periods. This function is used to evaluate the total number of payment periods required to pay off a given present value with a provided payment and periodic interest rate.

Question 18.
Write the appropriate SQL command to create an invoice table with required columns.
Answer:

• For other objects, it is not so easy to come up with an equivalent database table structure.
• Consider an invoice each invoice object contains a reference to a customer object.
• You right consider simply entering all the customer data into the invoice tables.

Question 19.
Explain the function of Auto filter & sort in excel.
Answer:
Auto Filter: Auto filter is an easy way to turn the values in Excel column into specific filters based on the cell content.
Sort: When you enter data into your worksheet it is often unorganised making it difficult to examine. When analyzing the information in your spreadsheet, you may need to rearrange the data in different ways to answer different questions. Excel’s sorting features can help you rearrange your data so you can use it more efficiently.

Question 20.
Subscription received during the year 2013, Rs. 30,000. Subscription Rs. 20,000 was outstanding at the end of the previous year. Calculate the income from a subscription for the year 2013.
Answer:
Subscription for the year of 2013 – Rs. 30,000
Less: O/S at the end of the previous year – Rs. 20,000
Subscription for the year – Rs. 10,000

Question 21.
What is Profit and Loss Appropriation Account?
Answer:
Profit and Loss Appropriation AccountProfit and loss Appropriation account is an account which is prepared to carry out adjustments of partners rights and obligations such as salary payable to partners, commission, interest on capital interest on drawings and distribution of profit among partners. It is an extension of the profit and loss account. Net profit as shown by the profit and loss account is brought down to this account.

Question 22.
Ram and Rahim are partners. Ram invested Rs. 2,00,000 and Rahim Rs. 2,50,000. In the absence of partnership, deed distributes the profit Rs. 50,000 to each partner.
Answer:
In the absence of Partnership deed Profits are divided in equal ratio, therefore,
Share of Ram and Rahim – 25,000 each.

Question 23.
What is meant by reconstitution of a partnership firm?
Answer:
The partnership is created by an agreement, whenever, there is a change in the existing agreement, it amounts to the reconstitution of the Partnership firm.

Question 24.
What do you mean by normal profit and super profit?
Answer:
Normal profit means a reasonable return on capital employed, i.e. profit earned by a similar firm in the same industry, whereas super profit means the excess of actual profit over normal profit.

Question 25.
Rajratan and Mrityunjay who share profit in the ratio of 3 : 2 admit Shashi to give him \(\frac{1}{3}\) share. Calculate the new profit & loss sharing ratio.
Answer:
Profit sharing Ratio of Rajratan and Mritunjay = 3 : 2
Shashi’s share in firm = \(\frac{1}{3}\)
Let total pforit of firm = 1;
Remaining balance of profit = \(1-\frac{1}{3}=\frac{2}{3}\)
therefore, new ratio
Rajratan = \(\frac{2}{3} \times \frac{3}{5}=\frac{6}{15}\)
Mrityunjay = \(=\frac{2}{3} \times \frac{2}{5}=\frac{4}{15}\)
Shashi = \(\frac{1}{3} \times \frac{5}{5}=\frac{5}{15}\)
New Ratio of firm = 6 : 4 : 5

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.
Distinguish between Sacrifice Ratio and Gaining Ratio.
Answer:
Distinguish between Sacrifice Ratio and Gaining Ratio:

Question 27.
How will you deal with the realisation expenses of the firm of Rashmi and Bindu in the following cases:
(i) Realisation expenses Rs. 1,00,000
(ii) Realisation expenses of Rs. 30,000 and paid by Rashmi.
(iii) Rashmi bears Realisation expenses for which she will be paid Rs. 70,000. The actual expenses incurred by Rashmi Rs. 1,20,000.
Answer:

Journal Entries

Question 28.
Distinguish between preference share and equity share.
Answer:
Following are the differences between preference shares and equity shares.

Question 29.
Distinguish between shares and debentures.
Answer:
Following are the differences between share and debentures.

Question 30.
Urbashi Ltd. purchased an established business for Rs. 50,000 payable Rs. 15,000 in cash and the balance by the issue of 9% debentures of Rs. 100 at a discount of 10%. Show journal entries.
Answer:

Question 31.
On 31st March 2013 Puja Ltd redeemed Rs. 2,50,000. 10% debentures out of profits. Show the Journal entries.
Answer:

In the books of Pooja Ltd

Question 32.
Rudra Company Ltd. issued 35000 equity shares of Rs. 10 each at a premium of Rs. 2 payable as follows:
On application – Rs. 3
On allotment – Rs. 5 (including premium)
The issues were fully subscribed and all the money were duly received Record necessary Journal entries.
Answer:

Question 33.
Mona Ltd. issued 4,000, 8% debentures of Rs. 100 each at a premium of 10% payable Rs 20 on the application and the balance with a premium on the allotment. Expenses on the issue of debentures were Rs. 500. Pass necessary Journal entries.
Answer:

Bihar Board 12th Entrepreneurship Model Papers

Bihar Board 12th Entrepreneurship Model Question Paper 3 in English Medium

Time: 3 Hours 15 Min
Marks: 70

Instructions for the candidates:

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 35 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/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
6. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 Long answer type questions, out of which any 3 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 35 has four options provided out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each question carries 1 (one) mark. (35 × 1 = 35)

Question 1.
Which of the following is an element of sensing the opportunities?
(a) Innovation quality
(b) Ability to perceive
(c) Insight into the change
(d) None of these
Answer:
(a) Innovation quality

Question 2.
Economic policies determine, what?
(a) Direction of Business
(b) Volume of Business
(c) Nature of Business
(d) Direction and volume of Business
Answer:
(b) Volume of Business

Question 3.
Incentives are not concerned with
(a) Exemption from tax
(b) Lump-sum payment
(c) Rebate
(d) Provision of capital
Answer:
(d) Provision of capital

Question 4.
The one included in demand forecasting is
(a) Short term forecasting
(b) Long term forecasting
(c) Consumer forecasting
(d) Marketing forecasting
Answer:
(a) Short term forecasting

Question 5.
Is included in the nature of marketing
(a) Customer
(b) Production
(c) Product planning
(d) Selling
Answer:
(c) Product planning

Question 6.
Which of the factors affect market assessment?
(a) Demand
(b) Production cost
(c) Selling price
(d) Microenvironment
Answer:
(b) Production cost

Question 7.
Demand forecasting is termed as what out of the following?
(a) Marketing
(b) Demand
(c) Supply
(d) Marketing Demand
Answer:
(d) Marketing Demand

Question 8.
Entrepreneur fulfils responsibilities:
(a) Managerial
(b) Social
(c) Statutory
(d) None of these
Answer:
(a) Managerial

Question 9.
To be considered in the selection of services
(a) Competition
(b) Product planning
(c) Practicality
(d) Market Assessment
Answer:
(c) Practicality

Question 10.
Essential elements of a selection of an Enterprise
(a) Secrecy
(b) Business Activity
(c) Area of Operation
(d) All of these
Answer:
(d) All of these

Question 11.
Factors which determine the form of organisation
(a) Location
(b) Study
(c) Size
(d) Innovation
Answer:
(d) Innovation

Question 12.
Increases sales and profit in the market
(a) Marketing
(b) Promotion
(c) Innovation
(d) Location
Answer:
(b) Promotion

Question 13.
Execution of project establishment
(a) Entry into the market
(b) Trial production
(c) Building construction
(d) All of these
Answer:
(d) All of these

Question 14.
Included in the establishment of enterprise
(a) Raw material
(b) Report
(c) profit-loss
(d) Technology
Answer:
(a) Raw material

Question 15.
Of all managerial activities planning is the
(a) Beginning and end
(b) Beginning
(c) End
(d) None of these
Answer:
(b) Beginning

Question 16.
A good plan is
(a) Expensive
(b) Flexible
(c) Rigid
(d) Time-consuming
Answer:
(b) Flexible

Question 17.
According to “Terry” types of planning are
(a) 04
(b) 14
(c) 16
(d) 08
Answer:
(a) 04

Question 18.
Incentives are not concerned with
(a) rebate
(b) exemption from tax
(c) provision of seed capital
(d) lump-sum payment
Answer:
(d) lump-sum payment

Question 19.
Project is not concerned with
(a) Risk
(b) Creativity
(c) Innovation
(d) Vision
Answer:
(b) Creativity

Question 20.
The project report is a summary of
(a) Analysis
(b) Facts
(c) Information
(d) All of these
Answer:
(d) All of these

Question 21.
Lack of standardization of the equipment is due to
(a) Regulatory Barriers
(b) Government Barriers
(c) External Constraints
(d) Internal Barriers
Answer:
(d) Internal Barriers

Question 22.
Resources of production functions are
(a) Money, Import
(b) Import, Export
(c) Commerce, Export
(d) Money, Import, Export, Commerce
Answer:
(b) Import, Export

Question 23.
Which of the following is a type of Physical Resource?
(a) Marketing
(b) Finance
(c) Resources
(d) None of these
Answer:
(c) Resources

Question 24.
Regular working capital is the part of
(a) Permanent working capital
(b) Variable working capital
(c) Regular & seasonal working capital
(d) All of the above
Answer:
(a) Permanent working capital

Question 25.
Long terms loan bears
(a) Flexible rate of interest
(b) Zero rates of interest
(c) Fixed-rate of interest
(d) Rate of 1% interest
Answer:
(c) Fixed-rate of interest

Question 26.
Included in the utility of BEP
(a) Profit improvement
(b) Risk valuation
(c) Diagnostic tool
(d) All of these
Answer:
(d) All of these

Question 27.
India Investment fund was established by
(a) IFCI
(b) State Bank
(c) Grindlay Bank
(d) Can Bank
Answer:
(b) State Bank

Question 28.
Non-Bank sources are
(a) Open Accounts
(b) Trade loans
(c) Public Deposits
(d) All of these
Answer:
(b) Trade loans

Question 29.
A personal account is related to
(a) all types of assets
(b) all types of income
(c) person, company and firm
(d) none of these
Answer:
(c) person, company and firm

Question 30.
Accounting system is
(a) single-entry system
(b) double entry system
(c) cost system
(d) both (a) and (b)
Answer:
(b) double entry system

Question 31.
Of all managerial activities planning is the
(a) beginning
(b) end
(c) beginning and end both
(d) none of these
Answer:
(a) beginning

Question 32.
Telephone expenses are
(a) fixed
(b) variable
(c) semivariable
(d) none of these
Answer:
(c) semivariable

Question 33.
Subsidy is
(a) discount
(b) concession
(c) repayment
(d) none of these
Answer:
(b) concession

Question 34.
Element affecting growth rate is
(a) competition
(b) change in technology
(c) creativity
(d) all of these
Answer:
(d) all of these

Question 35.
Long-term loan bears
(a) a fixed rate of interest
(b) zero rates of interest
(c) flexible rate of interest
(c) none of these
Answer:
(a) a fixed rate of interest

Non-Objective Type Questions

Short Answer Type Questions

Question No. 1 to 18 are short answer type. Answer any 10 questions. Each question carries 2 marks. (10 × 2 = 20)

Question 1.
Is management a profession?
Answer:
Management’s a well-defined body of knowledge there is an organization made to regulate whatever managers do. There is also a code of conduct for managers. But management’s not considered a profession because it needs a minimum number of qualifications, it’s essential for its practitioners to register themselves with a professional body and there’s no universally accepted code of conduct.

Question 2.
What does the opportunity cost?
Answer:
The opportunity cost of anything is the next best alternative that could be produced instead of the same factors by an equivalent group of factor costing the same amount of money.

Question 3.
What is short-term forecasting?
Answer:
Short-term forecasting refers to that forecasting which made for a short-time generally, short-term forecasting is made for the period of six months to one year.

Question 4.
What do you understand by expansion project?
Answer:
Under the expansion of project consisting the work, such as to the production of the new product to set up of new production unit to increase in capacity to produce goods and evolution of new markets.

Question 5.
How will you determine net working capital?
Answer:
Determination of networking capital = Net Working Capital = Current Assets – Current Liabilities
where,
Current Assets = Sundry debtors stock Cash, B/R prepaid expenses, etc.
Current Liabilities = Sundry Creditors Bill payable(B/P) outstanding etc.

Question 6.
What is Fund flow?
Answer:
A fund flow statement is a statement prepared to indicate the increase in the cash resources and the utilisation of such resources of business during the accounting period.
Unearning of fund flow: The term fund flow of funds means changes in working capital
Funds: Current Assets – Current liability

Question 7.
What is expressed by the solvency ratio?
Answer:
Solvency ratio: Solvency means the ability of a firm to pay its liabilities on the due date.
In a broader sense, the analysis of solvency can be divided into two groups:

• Short-term solvency
• Long-term solvency

Question 8.
State any two features of the modern concept of marketing.
Answer:
Following are two features of modern marketing:

• The modern concept of marketing lays maximum stress on consumers satisfaction
• In the modern concept of marketing goods and services are produced keeping on view the desires and requirements of the consumer or customers.

Question 9.
What are the elements of the project cycle?
Answer:
Followings are elements of the project cycle:

• Project formulation stage
• Project appraisal
• Selection of project
• Project implementation,
• Project commencing.

Question 10.
Write anyone cause of difference between fixed and working capital.
Answer:
Following are the causes of differences between fixed capital and working capital:

• Meanings
• Period
• Nature
• Sources
• Necessity.

Question 11.
What is the importance of venture capital?
Answer:
The amount of capital should be adequately balanced otherwise increase of over or under capitalisation, both the condition are total to a venture capital hence it must be available in a balanced proportion.

Question 12.
State any two factors which affect physical resources.
Answer:
Followings are the two factors which are affecting the physical resources:

• Location of land, size and its cost
• The conditions for installing machinery and its repairs etc.
• Effect on the environment.

Question 13.
Write three elements of the marketing mix.
Answer:
Following are the three elements of the marketing mix:

• Product mix
• Price mix
• Promotion mix.

Question 14.
Define Break-even analysis.
Answer:
“The break-even point is that point of sales volume where total revenues and total expenses are equal, it is also said as the point of zero profit or zero loss.”

Question 15.
Define venture capital.
Answer:
“The primary stage of finance which is related to the new and young organisation who wants to the regular development of their organisation given.

Question 16.
Is management considered a profession?
Answer:
Management fulfils some of the major characteristics of the profession (specialised knowledge, technical competency, training and experience and formal arrangement for enhancement of these. Priority to the feeling of devotion and service.) however some of the other characteristics (such as the formation of a professional union or body code of conduct etc.) are as yet not forcibly developed. Development of management as a profession in India even today is in the infantile stage and is making very slow progress.

Question 17.
What is product design?
Answer:
To making product design is a primary work of any enterprises because of the image and capacity of getting a profit of any enterprises are mostly depend on product design.

Question 18.
What is the object of branding?
Answer:
There are the following objects of Brand:

• The brand is a broad term which is used to identify a product
• Proud in a concrete or an abstract from establishes the identity of the product of a particular organisation that distinction is from that of other competitions
• Act the means of identity to a brand are included in the brand.
• The brand is a catalyst in the popularity and sales promotion of the product.

Long Answer Type Questions

Question No. 19 to 24 are long answer type. Answer any 3 questions. Each question carries 5 marks. (3 × 5 = 15)

Question 19.
Describe the nature of planning.
Answer:
Characteristics of Planning: Planning should have the following characteristic
(i) Objective-Based: A good planning is made keeping in view the objectives of the organisation. Whatever kind of plan may be and whichever department it may belong to it always makes scope for the various activities to be directed toward the achievement of goals.

(ii) Simple & Flexible: Planning should have the qualities of simplicity and flexibility. It should be simple in the sense that the person who implements it understand It. He should not feel the necessity of coming to planners again and again for seeking classification. Planning should be flexible as well.

(iii) Co-ordination: It should not be a lopsided plan proper co-ordination should be maintained within the cane accordingly without for its storage, It means it is lacking co-ordination.

(iv) Leading to efficiency and Economy: A properly drawn-out planning should lead to improving efficiency. It should suggest the right kinds of machines to be operated by workmen. It should also indicate the quality of raw materials to be used by the workmen. If the proper machine and proper raw material have been provided to the right kind of man the efficiency is bound to increase.

(v) Comprehensive: Planning should be comprehensive. It should deal with all aspects of the organisation. A list of all the activities of the organisation should be made. Even the smallest activity should not be an escape from this list.

(vi) Indicating Quantum: The overall targets are always given in the objectives. To achieve the prescribed target, each person in the organisation has to make his contribution. Good planning not only lays down the target of the expected outcome of each department but also of each sub-department.

Question 20.
Describe the factors affecting working capital.
Answer:
Factors affecting the working capital: There are the following factors affecting the working capital as:
(i) Nature and size of Business: The working capital depends on the nature of the business to a great extent. If a business is engaged in the production process more working capital will be required on other hand business firms engaged in trade activities will ‘require less working’ capital.

(ii) Business Cycles: The need for working capital keeps on increasing or decreasing according to business cycle. During Boom periods the businessman try to keep the maximum possible stock of goods in order to escape from the price increase.

(iii) Term of Buying & Selling: If businessman buy the necessary material for cash he requires more working capital. If the business unit has the policy of credit sales, more working capital will be required.

(iv) Duration of Production: The amount of working capital also depends upon the time taken in the manufacturing of a product. If the time required for the manufacture of the product is more, more working capital is needed to be.

(v) Volume & Procurement of Raw Material: If the amount to be spent on raw material is more in total investment more working capital will be required.

(vi) Manual Vs Automation: If a business unit uses automatic machines for production less working capital will be required. If the production is labour oriented like the workers engaged in tea, coffee, rubber etc. More working capital will be required.

(vii) Form of Taxation: Government policy of taxation also influences the need for working capital more capital will be required if all taxes are to be paid in advance, otherwise the need will be less.

(viii) Seasonal goods: If business units are engaged in such goods in which seasonal conditions play an important role need for working capital will be felt according to seasonal requirements.

(ix) The intensity of competition: If the market competition is intense, more amount of working capital is required as a competitive firm has to keep huge quantities of a long-range of products.

(x) Business growth: If a business is expanding it requires more money for raw materials wages etc.

Question 21.
Explain the nature of Management.
Answer:
Nature of Management: There is much important nature of Management as follows:
(i) Management is an art as well as science: Management can be treated as an art as well as a science because it has both qualities. It has similar qualities to science as well as arts.

(ii) Management is a process: It is a process because a large number of events are done under a management system for the achievement of certain goals or objectives. Such as planning, organising, staffing directing and controlling etc.

(iii) Management is a universal process: It is an important feature of management. It is called a universal process because it has gained a wide area of application. In fact, the principle of management can apply each and every form of the organisation either it may be business organisation, social or political organisation.

(iv) Management is a social process: Management can consider as a social process because it is concerned with human and their relationship.

(v) Management is a goal-oriented Approach: Management refers to a goal-oriented approach because it is directly related to the goals or objectives of the organisation. It provides a certain platform to the organisation to perform its various activities in the best way.

(vi) Management is a continuous process: It can be described as a continuous process because it is not an event which is concerned with the point of time. It is a never-ending process. It needed at every walk of life of an organisation.

(vii) Management is a creative function: It is a creative function because it creates so many things for all-around the development of people. It contributes to new investment incomes and new business etc in the nation.

Question 22.
Define planning. What are its features?
Answer:
Planning refers to opening the best alternatives after careful consideration. By imaging in the womb of future of option of the right advice and a follow up is termed as management or business planning. In other words, tomorrow’s job is to be determined right now or today is planning.

Definition of Planning: According to knootz and O’Donnell, “Planning is a judicious process which opens the door to various activities in which the decisions on objectives facts and pre-conceived estimates are to be taken.
According to W. H. Numan, “Generally to determine before what is to be done is planning. From this point of view, planning is a manifestation of vast human conduct.”
Characteristics or value of planning:

• Definite object and goal: Planning aims at achievement the certain objectives and every entrepreneur keeps such objectives in mind and plans accordingly.
• Forecasting: The second important phase of planning is to look towards the future with overuse of anticipation. According to Fell, “Planning is a synthesis of the forecasts be they be long term or short term, general or particulars forecasts.”
• Utility: Unity is also an essential feature of planning. At one time only one planning can be executed as any dual planing at a time can lead to chaos and uncertainty.
• Selection of the best among alternative courses of action: It refers to the option of the best alternatives available with the entrepreneur who has several options, policies and methods for managing the affairs.
• Planning is a continuous and flexible process: Future remains unpredictable. Nobody can assert with certainty what will happen tomorrow since planning is also recalled to future.
• Primary function: Planning, of course, is a primary function. In any commercial venture, planning is placed on the highest pedestal and the rest of the job are scored a secondary primary.
• Intellectual and mental process.

Question 23.
Explain the marketing concept and its objectives.
Answer:
The study of these five constituents is essential for the emergence of an enterprise:

• Labour or men: In all the resources of production, the ingredient of labour is the most mobilising element that stimulates all other factors and turns even the most useless thing into a useful one.
• Raw material: If the enterprise is production oriented a prior arrangement should be emphasised with regard to availability,type,cost/price and regular supply of the raw materials.
• Machine: Whatever be the scale of the enterprise whether big or small, machines are required in either case.
• Money: Money/capital is the lifeblood of an enterprise without which the establishment is an inconceivable presumption. The capital in the long and short term and its amount and the capital resources are a pre-emptive requirement.
• Market: A prior estimate is to be formed in terms of market consumption before the establishment of the enterprise.
• Place: It is also an important aspect and be decided where the enterprise should be set up.

Question 24.
Name the various elements included in total cost.
Answer:
Marketing is used almost by everybody as per his status ability need and environment as a normal word. All, therefore, mentioned ideas are the various aspects of marketing.
According to Pyle, “Marketing comprises both buying and selling activities.”

According to Clark and Clark, “Marketing consists of those efforts which affect transfers in the ownership of goods and services and provide for their physical distribution.”
There are the following functions of marketing manager:

• Buying: Buying is the first step in the marketing function. In a manufacturing unit, the raw material and int business unit, the finished goods is purchased.
• Selling: Selling is the most significant function of marketing. Selling refers to the transfer of merchandise or services from the owner to the customer.
• Pricing: The third important task is to determine the price of the products which necessitates a wider contemplation. According to the principle of Economics, the price of a product is linked to the demand and supply of a product.
• Physical distribution: This is the last function of marketing but not the least. Physical distribution implies the delivery of the product at an appropriate time, at the right place, in the right quantity and in right hands.

Bihar Board Class 12th Intermediate Model Question Papers, Sample Papers 2019, 2020, 2021 with Answers Pdf free download for Science, Commerce, Arts in Hindi Medium and English Medium.

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Bihar Board 12th Entrepreneurship Model Question Paper 2 in English Medium

Time: 3 Hours 15 Min
Marks: 70

Instructions for the candidates:

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 35 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/Nail on OMR Sheet, otherwise, the result will be treated as invalid.
6. In Section – B, there are Non-objective type questions. There are 18 Short answer type questions, out of which any 10 questions are to be answered. Each question carries 2 marks. Apart from this, there are 6 Long answer type questions, out of which any 3 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 35 has four options provided out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each question carries 1 (one) mark. (35 × 1 = 35)

Question 1.
Is it necessary to give due consideration on internal resources before initiating a particular decision?
(a) Yes, it is necessary
(b) No, not necessary
(c) Necessary for External Resources
(d) None of the above
Answer:
(a) Yes, it is necessary

Question 2.
Which of the following is a factor affecting the identification of business opportunities?
(a) The volume of Internal demand
(b) Created opportunity
(c) Existing opportunity in the Environment
(d) None of the above
Answer:
(a) The volume of Internal demand

Question 3.
Learning processes involves.
(a) Drive
(b) Cue
(c) Response
(d) Drive, cue, and response
Answer:
(d) Drive, cue, and response

Question 4.
Subsidy is:
(a) Concession
(b) Discount
(c) Repayment
(d) None of these
Answer:
(c) Repayment

Question 5.
The business regulatory framework is concerned with what.
(a) Direction of Business
(b) Volume of business
(c) Regulation
(d) None of the above
Answer:
(c) Regulation

Question 6.
Do economic policies determine?
(a) Direction of Business
(b) Volume of Business
(c) Direction & Volume of Business
(d) None of these
Answer:
(c) Direction & Volume of Business

Question 7.
Short-term forecast involves a period of how many months?
(a) Twelve months
(b) Twenty four months
(c) Eighteen months
(d) Thirty-six months
Answer:
(a) Twelve months

Question 8.
Demand forecasting is termed as what out of the following?
(a) Marketing
(b) market demand
(c) demand and supply
(d) all of the above
Answer:
(b) market demand

Question 9.
Which of the following factors is to be considered while selecting a product or service?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) all of the above
Answer:
(b) Cost of production

Question 10.
Out of the following, what is essential: to study in the feasibility study?
(a) Cost
(b) Prince
(c) Operation
(d) All of the above
Answer:
(d) All of the above

Question 11.
Market demand is known as
(a) Demand forecasting
(b) Real demand
(c) Supply
(d) None of those
Answer:
(a) Demand forecasting

Question 12.
What creates imperfection in the market which ultimately increases the volumes of sales and profit?
(a) Innovation
(b) Promotion
(c) Marketing
(d) None of the above
Answer:
(a) Innovation

Question 13.
How will you formulate a general plan of Business?
(a) By production planning
(b) By cost planning
(c) By financial planning
(d) By doing all the above
Answer:
(d) By doing all the above

Question 14.
Which of the following is a problem connected with Business?
(a) Profit
(b) Money
(c) Sales
(d) Risk management
Answer:
(d) Risk management

Question 15.
On which out of the following the formulating of the general plan of a business depends.
(a) Project report
(b) Plant & production planning
(c) Marketing planning
(d) Financial planning
Answer:
(d) Financial planning

Question 16.
Lack of standardisation of the equipment is due to
(a) Internal constraints
(b) External constraints
(c) Government Barriers
(d) Regulatory Barriers
Answer:
(b) External constraints

Question 17.
The project cycle is not concerned with the following
(a) Pre-investment stage
(b) Constructive stage
(c) Normalisation stage
(d) Stabilisation stage
Answer:
(d) Stabilisation stage

Question 18.
Modernisation improves.
(a) Products
(b) Production
(c) Processes
(d) Capacity
Answer:
(d) Capacity

Question 19.
The gestation period is concerned with.
(a) Idea creation period
(b) Incubation period
(c) Implementation period
(d) Commercialisation period
Answer:
(c) Implementation period

Question 20.
What is required for fixed capital and working capital of any enterprise?
(a) Finance
(b) Marketing
(c) Planning
(d) None of the above
Answer:
(a) Finance

Question 21.
The term “fund” as used in fund flow analysis means
(a) Cash only
(b) Current Assets
(c) Current liabilities
(d) Excess of current Assets over current liabilities
Answer:
(d) Excess of current Assets over current liabilities

Question 22.
What affects the purchase of plant will have working capital?
(a) Decrease
(b) Increase
(c) No effect
(d) None of the above
Answer:
(a) Decrease

Question 23.
B.E.P. = ________
(a) \(\frac { FixedCost }{ \frac { P }{ V } ratio }\)
(b) \(\frac { FixedCost }{ Contribution } \times 100\)
(c) \(\frac { \frac { P }{ V } ratio }{ FixedCost }\)
(d) None of these
Answer:
(a) \(\frac { FixedCost }{ \frac { P }{ V } ratio }\)

Question 24.
P/V ratio = ________
(a) \(\frac { Contribution }{ Sales } \times 100\)
(b) \(\frac { Sales }{ Contribution } \times 100\)
(c) \(\frac { Contribution }{ Sales }\)
(d) None of these
Answer:
(a) \(\frac { Contribution }{ Sales } \times 100\)

Question 25.
Risk Capital Foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 26.
Technological Development and Infrastructure Corporation of India was established in the year
(a) 1975
(b) 1986
(c) 1988
(d) 1990
Answer:
(c) 1988

Question 27.
What is management?
(a) Science
(b) Art
(c) Art and Science both
(d) None of these
Answer:
(c) Art and Science both

Question 28.
The foremost need for development in a country is of
(a) Physical Resources
(b) Economic Resources
(c) Efficient management
(d) None of these
Answer:
(b) Economic Resources

Question 29.
The present production system in fact is
(a) Direct production
(b) Indirect production
(c) Primary
(d) Secondary
Answer:
(b) Indirect production

Question 30.
Out of the following which is the method of quality control?
(a) Inspection method
(b) The statistical quality central method
(c) Both “A” and “B” above
(d) None of these
Answer:
(c) Both “A” and “B” above

Question 31.
Out of the following which is the method of production?
(a) The direct method of production
(b) The indirect method of production
(c) Both “A” and “B” above
(d) None of the above
Answer:
(c) Both “A” and “B” above

Question 32.
Marketing Expenditure is a burden
(a) On Industry
(b) On businessmen
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 33.
The characteristics of a good brand are
(a) Short name
(b) Memorable
(c) Attractive
(d) All of these
Answer:
(d) All of these

Question 34.
The maximum wide scope is of
(a) Brand
(b) Labelling
(c) Packaging
(d) Trademark
Answer:
(a) Brand

Question 35.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Short Answer Type Questions

Question No. 1 to 18 are short answer type. Answer any 10 questions. Each question carries 2 marks. (10 × 2 = 20)

Question 1.
What is the relationship between opportunity and entrepreneur?
Answer:
The most important exception is the literature in management and organization theory on opportunity discovery or opportunity identification, or what Shane (2003) calls the “individual-opportunity nexus.” Opportunity identification involves not only technical skills like financial analysis and market research, but also less tangible forms of creativity, team building, problem-solving, and leadership. Entrepreneurship is an activity that involves the discovery, evaluation, and exploitation of opportunities to introduce new goods and services, ways of organizing, markets, process, and raw materials through organizing efforts.

Question 2.
Give any three objectives of environment scanning.
Answer:
The following is the objective of Environmental scanning:

• Identification of strength
• Identification of opportunities
• Identification of weakness
• Identification of threat.

Question 3.
What is the feasibility study?
Answer:
A feasibility study is an analysis of how successfully a project can be completed, accounting for factors that affect it such as economic, technological, legal and scheduling-factors.

Question 4.
Explain any two steps in the Execution of setting up an enterprise.
Answer:
An entrepreneur has to take the following steps in order to set up an enterprise.

• Selection of line of business: The entrepreneur has to decide the type of business in terms of manufacturing trading or service, then he has to select the types of goods and services to be will produce and distribute.
• Size of the Unit: Decision regarding the size of the unit of very important. The optimum size is one at which the average cost per unit is minimum.

Question 5.
Mention any three features of planning.
Answer:
Three features of planning are the following:

• Planning is a primary function of management.
• Planning contributes to the objective.
• Planning is forward-looking.

Question 6.
What are the objectives of project appraisal?
Answer:
Following are the objective of Project Appraisal:

• To extract relevant information for determining the success or failure of a project.
• To apply standard yardsticks for determining the rate of success or failure of a project.
• To determine the expected costs and benefits of the projects.
• To arrive at specific conclusions regarding the project.

Question 7.
What is fixed capital?
Answer:
Fixed capital is also known as fixed assets which refers to that part of the capital which is invested in fixed assets viz., land, building, machinery, furniture and equipment, etc. The objective of purchasing then is to earn income from them on a long-term basis. These assets remain involved for a long time, thus, called fixed assets.

Question 8.
Define the ratio.
Answer:
Ratios are useful tools that help companies and investors analyze and compare relationships between different pieces of financial information across an individual company’s history, an industry, or an entire business sector. ‘

Question 9.
What is the profit-volume ratio?
Answer:
The profit volume (PV) Ratio is the ratio of contribution over sales. It measures the profitability of the firm and is one of the important ratios for computing profitability.

Question 10.
What are the sources to mobilise financial resources?
Answer:
Following are the sources of stabilising financial resources:

• Loan from Banks
• Bank overdraft
• Cash credit
• Short term Loan
• Commercial paper/Bill
• Discounting of Bills Receivables
• Trade credit, etc.

Question 11.
State the characteristics of fixed capital?
Answer:
Following are the characteristics of fixed capital:

• Fixed capital is capital invested in fixed Assets
• Fixed capital is required for promoting business and its ancillary activities
• Fixed capital is used to acquire fixed assets These assets have low Liquidity because they are not easily saleable
• Fixed capital has a long-lasting existence
• Primary sources of fixed capital are shares. Debentures and long-term loans
• Fixed capital is used to meet the long-term need of the business some of which like amalgamation, merger
• etc.
• Fixed capital is a source of wealth
• Fixed capital improves financial analysis
• It provides long-term business stability.

Question 12.
What is the importance of finance in business?
Answer:
The goal of any finance function is to achieve three benefits: Business Support service, lowest costs and effective control of the environment, money is the lifeblood of a business and finance is the nerve centre. Finance is required to promote or create a business gain assets, develop products, run market surveys advertise. The conventional view of finance focuses or being reactive, efficient, quantitative and risk-averse. Now innovative views focus on being vision-oriented, opportunity and growth-focused, intuitive and risk-taking.

Question 13.
What is the production design? Discuss its phases.
Answer:
Product design process: The set of strategic and tactical activities, from idea generation to commercialization, used to create product design, in a systematic approach, product designers conceptualize and evaluate ideas, turning them into tangible inventions and products. The product designer’s role is to combine art, science, and technology to create new products that people can use. Their evolving role has been facilitated by digital tools that now allow designers to communicate visualize, analyse and actually produce tangible ideas in a way that would have taken greater manpower in the part.
Generally, the following points will be considered while preparing product design:

• Standardisation
• Reliability
• Reproducibility
• Product simplification
• Product price
• Maintainability
• Sustainability
• Servicing
• Consumer Quality

Question 14.
Give any three objectives of the project report.
Answer:
Following are the three objectives of project Report.

• To evaluation of investment opportunity.
• It is necessary to present a report for taking financial help.
• The project report is a systematical point of view for making a decision about investment.

Question 15.
What do you mean by the cycle of working capital?
Answer:
Availability of enough working capital is indicative of liquidity of business and capacity to make prompts payment. Working capital is needed for making payment of day to day expenditure for meeting current liabilities and for availing benefit of cash discount.

Question 16.
What is the marketing mix?
Answer:
Marketing mix implies a combination of all marking elements or ingredients so that the objective of the enterprise may be realised. The marketing mix is the appointment of effort the combination the designing and the integration of the elements of marketing into a programme or mix which on the basis of the marketing forces will best achieve the objectives of an enterprise at a given time.

Question 17.
Define cost.
Answer:
I.C.M.A London has defined the term ‘cost’ as a noun as well as a verb. As a noun, it means “the amount of expenditure (actual or nominal) incurred on or attributable to a specified thing or activity.” As a verb, it means to ascertain the cost of a specified thing or activity. The specific thing or activity may be a product, job, services, process or any activity. Thus, the cost can be termed as the number of resources given up in exchange for some goods or services.

Question 18.
What are the opportunity cost and joint cost?
Answer:
Opportunity cost: The opportunity cost of goods or services is measured in terms of revenue which could have been earned by employing that goods or services in some other alternatives use.

Joint cost: When two or more than two products are being produced. Some separate cost has occurred for a separate product which called separate cost but some type of expenses cost occurred the same for all types of products which is called joint cost.

Long Answer Type Questions

Question No. 19 to 24 are long answer type. Answer any 3 questions. Each question carries 5 marks. (3 × 5 = 15)

Question 19.
What do you mean by product and product mix? What is the product dimension?
Answer:
Meaning of Product: A product is an item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at price. The price that can be charged depends on the market, the quality, the marketing and segment that is targeted. The product needs to be functionally able to do what it is supposed to, and do it with good quality, users and potential users must know why they need to use it, what benefits they can derive from it, and what it does difference it does to their lives.

Meaning of Product Mix: Products refers to anything which is offered to the public for sale. It may be a physical object, service or an idea, Product mix deals with decisions concerning varieties quality features, packaging, size, brand guarantee and services to be offered in respect of the firm’s product.
Dimensions of Products:

• Product line
• Product size
• Product output
• Product width
• Product quality and standard
• Product Brand
• Product Depth
• Product Labelling and Trademark
• Product packaging
• Product Designs.

Question 20.
What is meant by Brand? Explain the characteristics of a good brand.
Answer:
Meaning of Brand: A brand is a name, term, sign, symbol, or some combinations used to identify the products of one firm and to differentiate them from competitive offerings. A brand or trademark is an integral part of the symbol appearing on the product. A buyer identifies the product with the brand name and the seller gets a chance to earn goodwill in the market. According to the American Marketing Association. “A brand name is that part of the brand consisting of words or letters that comprise a used to identify and distinguish the firm’s offerings from those of competitors.”

The brand name gives the product a distinguishing mark which differentiates it from the products of the competing companies. For the buyers as well as sellers, the marketing process becomes more easily with the brand name. The brand mark s a symbol, design, or another element of a brand that can not be .poken. It could be recognised by sight only. For example, the symbol of ‘Maharaja’ of Air India, the inscribed polo layer on Ralph Lauren Polo Shirts, etc.

Branding is the management process by which a product is branded. It is a general term covering various activities such as giving a brand name to a product, designing a brand mark, and establishing and popularising it. Characteristics of Brand: A good brand name is helpful for advertising and publicity in the market. Name of the brand must be carefully selected. Even multinational marketing firms face a particularly acute problem in selecting brand names. A very good brand name in one country may prove disastrous in another.

However, the following are the essential characteristics of a good brand name:
Easy to Pronounce: The brand name should be simple, short and easy to pronounce for people of different cultures and for illiterate persons. Sometimes, people can not pronounce certain words correctly and then they feel hesitant to ask for that product e.g., Crompton, Raymond, Liberty, Woodland etc.

Easy to Remember: The brand which is easy to pronounce are also to remember. These products are easy to advertise.

Right Connotation: A brand should itself suggest something about the product-its use, quality, nature, purpose, performance or action, whenever a buyer sees or hears a brand name, some sort of image is formed in mind, e.g., Chavan Prash, Vicco Vajnardanti, Nescafe Coffee, Tiger Tea, Devdarshan Dhoop etc.
Legally Protectable: The brand name should be legally protected under the legislation. It should not contain any name based on geographical, historical or a name which is used by the general public in the general sense e.g., ghee, cola, transistor, etc. The name should be the creation of the producer like.
Nirma, Wheel in case of washing powder.
Lux, Hamam, PONDS, REXONA in case of toilet soaps. SUFFOLA, DHARA, SUN-FLOWER in case of vanaspati oil. FORHANS. PROMISE, CLOSE-PEPSODENT in case of toothpaste.
VIDEOCON, PHILIPS, SONY, ONIDA in case of TV. and VCR. GODREJ, KELVIN ATIOR, ALWYN,
VIDEOCON in case of Refrigerators etc.
Stability: Brand name should have a stable life and should not be affected by the change in fashion and style.
Uniqueness and Distinctiveness: The original name is one which is quite distinctive, which is not an imitation of others, e.g., RIN, SURF, PHILIPS, ONIDA, TATA, BATA, DCM, etc.

Question 21.
Briefly discuss the process of Planning.
Answer:
Process/Techniques/Steps of planning: Notwithstanding the size, status and nature of a business venture the process of planning is indispensable to all since its reality. However, identical planning can not be implemented in every case. Usually, business planning has to undergo the following stages:
(i) Fixation of Objectives: The first and foremost step is to define and determine the objectives of an enterprise otherwise the planning process can go haywire. The objectives may be on the long-term or short-term basis.

(ii) Collection and Analysis of Informations: First of all the objectives are defined and determined and thereafter for the realization of the objectives all the relevant information are obtained. Following an analysis of such information, the basis of planning is undertaken.

(iii) Selection of Alternative Sources: There are several ways of achieving the objectives. The evaluation of such options in terms of strategy, cost and effects need to be studied and from all the available alternatives the best one is to be followed.

(iv) Study the Limitations of Planning: planning is meant for the future. After deciding about the beautiful native its limitation should also be studied. After a review of the strategies for the realisation of the objectives, the problem hurdles in this way should also be evaluated by leaving a little space for any change.

(v) Formulation of the plan: In accordance with the objective here starts the process of planning. There need to move ahead in a sequence stepwise, after having evaluated the various aspects, a final shape is given to the future planning.

(vi) Formulation of sub-plans: With the help of the cardinal plan various sub-plans are undertaken to facilitate the achievement of the objectives. Such sub-plans are not independent entities rather they are the integral parts of the main plan.

(vii) Determining Time Limit: It becomes imperative to give a time frame to major and sub-plans. Every step of planning must be time-bound as which job is to be completed in how many days so as complete control on these activities could be ensured.

(viii) Evaluation: Planning is a perpetual phenomenon. It is not a one-time job and can never be concluded rather it warrants a consistent appraisal and it is also required to ensure compliance of actions with the planning.

Question 22.
Why time boundation is essential in planning?
Answer:
Business owners develop plans to reach their overall goals, and they usually find it useful to separate planning into phases. The different time frames of the planning process place the focus on time-sensitive aspects of the company’s structure and environment.

(i) Short Term Planning: Short term planning looks at the characteristics of the planning in the present and develops strategies for improving them, short term planning takes twelve months or less.

(ii) Medium Term planning: Medium-term planning usually for more than twelve months and fewer team 5yrs. It applies more permanents solutions to short-term problems. If there are quality issues, the medium-term response is to revise and strengthen the company’s quality control program.

(iii) Long Term Planning: Long-term planning organise for more than five years. In the long term, companies want to solve problems permanently and to reach their overall targets. Long-term planning reacts to the competitive situation of the company in its social, economic and political environment and develops strategies for adapting and influencing its position to achieve long term goals.

Question 23.
What do you mean by market assessment? What are the factors affecting market assessment?
Answer:
Market Assessment: Goods are produced and facilitate for providing services are created in anticipation of their demand the ultimate aim of these activities is that these reach these for whose these are meant. The commodities are needed for consumption and used by the ultimate consumers. The services are utilised by whose. Who was want to derive satisfaction out of them?

Factors Affecting the market assessment of follows:
(i) Satisfying customers needs: The concept of the market begins with the identification of the customer’s needs. It forces on producing goods or services commensurate with the wants of the customers. Thus it raises the standard of living of the customers.

(ii) Economic Development: Market plays an important role in raising the economic standard of a nation. It purchases and sale qualitative products of competitive rates not only for the internal consumption but also for more and more countries. On the other hand, it serves the citizens and on the other, it adds to the wealth of a nation. It tries to strengthen the foreign exchange reserves by exporting goods and services. Thus it strengthens a country on the economic front:

(iii) Accomplishing the Objectives of the sellers: Market helps in achieving the objectives of the sellers. The seller may be earning profit and public welfare. The market tends to find out what the customers want. The marketeers try to produce according to need felt of the ultimate customers. Thus the market plays an important role to achieve the two-fold objectives earning profit and satisfying customers.

(iv) Improves the standard of living: Market helps in raising the quality of life of common people and the standard of living by providing a new and improved variety of goods and services to them. It makes goods and services available at lower prices.

Question 24.
Define planning? What are its features?
Answer:
Planning: It is deciding in advance what to do how to do it, when to do it and who is to do it. It makes possible for things to occur which would not otherwise happen.
“Planning is selecting information and making assumptions regarding the future to formulate activities necessary to achieve organisational objectives.”

In words of Henri Fayol ‘Planning means to assess the future and make provision for it. The plan of action is at one and the same time the result envisaged in the line of action to be followed, the stage to go through the methods to use.
Features of Planning: The meaning of planning and its definition, as given above reveal its features, which may be stated as:
(i) The Basis function: Planning is the first function of management. It proceeds all other function viz. Organising, staffing, directing and controlling. Planning determines the objectives and course of action be followed without objectives and course of action, other functions are meaningless.

(ii) A continuity Activity: Plans need continuous review with the view to take cognisance of the nature of economics to keep an equilibrium in changing pattern of demand and supply. Involving co-ordination of different function of management and thus keep the business in perfect running condition, planning is a dynamic concept.

(iii) The activity of the cognitive domain: Planning relates to the cognitive domain. It is a domain of contemplation and thinking. Under planning, the managers think and arrive at a consensus of laying down ways and means to achieve the goal.

(iv) Efficiency increasing activity: Planning increase efficiency. Planned actions are always better than the non-planned ones. Planning establishes a system which helps in doing the job smoothly and quickly.

(v) Choice making activity: There may be different alternatives for finding a solution to a problem. Planning tends to choose the best course of action from different alternatives.

(vi) Based on forecasting: Planning follows forecasting. Forecasting is a technique of anticipating facts relating to the future. It is an intelligent guess of future. Planning is made on the basis of scientific predictions about the future.

(vii) Objective Oriented Activity: Planning gets inspiration from objectives. Koontz and O’Donnel have stated that “the purpose of every plan and all derivatives plan is to facilitate the accomplishment of enterprise purpose and objectives.”