Category: Class 12

Bihar Board 12th Accountancy Model Papers

Bihar Board 12th Accountancy Model Question Paper 5 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 & 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.
Legacy should be treated as
(a) liability
(b) capital receipt
(c) revenue receipt
(d) None of these
Answer:
(a) liability

Question 3.
Specific donation is
(a) Capital Receipt
(b) Revenue Receipt
(c) Assets
(d) None of these
Answer:
(a) Capital Receipt

Question 4.
Subscriptions received by an organisation is
(a) Capital Receipt
(b) Revenue Receipt
(c) Both
(d) None of these
Answer:
(b) Revenue Receipt

Question 5.
Current Account is
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal A/c

Question 6.
Making partnership agreement is
(a) compulsory
(b) voluntary
(c) partly compulsory
(d) None of these
Answer:
(a) compulsory

Question 7.
For the firm interest on partner’s drawing is a/an
(a) expense
(b) income
(c) loss
(d) receipt
Answer:
(b) income

Question 8.
In the partnership firm, profit and loss are shared
(a) equally
(b) ratio of capital
(c) according to agreement
(d) none of these
Answer:
(c) according to agreement

Question 9.
P/L Appropriation A/c is prepared
(a) for reserve fund
(b) for net profit
(c) for divisible profit
(d) none of these
Answer:
(c) for divisible profit

Question 10.
Interest on advance given to the firm is
(a) an appropriation
(b) profit
(c) charge
(d) none of these
Answer:
(c) charge

Question 11.
The excess of average profit over the normal profit is called
(a) super profit
(b) Fixed profit
(c) Abnormal profit
(d) normal profit
Answer:
(a) super profit

Question 12.
The monetary value of the reputation of the business is called
(a) goodwill
(b) surplus
(c) abnormal profit
(d) none of these
Answer:
(a) goodwill

Question 13.
Profit or loss on revaluation is borne by
(a) old partners
(b) new partners
(c) all partners
(d) only two
Answer:
(a) old partners

Question 14.
Excess of the credit side over the debit side of Revaluation Account is
(a) profit
(b) loss
(c) receipt
(d) expense
Answer:
(a) profit

Question 15.
The opening balance of Partner’s Capital A/c is credited with
(a) interest on capital
(b) interest in drawing
(c) drawing
(d) share in loss
Answer:
(a) interest on capital

Question 16.
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 17.
On the retirement of a partner, the full amount of goodwill is credited to the capital accounts of
(a) retiring partner
(b) remaining partners
(c) all partners
(d) none of these
Answer:
(d) none of these

Question 18.
Gaining Ratio is calculated
(a) at the time of admission
(b) at the time of retirement
(c) on the dissolution
(d) none of these
Answer:
(b) at the time of retirement

Question 19.
Profit & Loss on Revaluation at the time of retirement is shared by
(a) remaining partners
(b) all partners
(c) new partners
(d) none of these
Answer:
(a) remaining partners

Question 20.
A, B and C are partners sharing profit & loss in the ratio of 5 : 3 : 2. A retires. The gaining ratio is
(a) 3 : 2
(b) 5 : 3
(c) 5 : 2
(d) None of these
Answer:
(c) 5 : 2

Question 21.
The amount due to the deceased partner is paid to his
(a) Father
(b) Friend
(c) Wife
(d) Executors
Answer:
(d) Executors

Question 22.
On the death of a partner in a firm final payment are made to
(a) Capital A/c
(b) Executor A/c
(c) Current A/c
(d) Loan A/c
Answer:
(b) Executor A/c

Question 23.
The executors of a deceased partner will be paid interest on the amount 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 24.
Joint life policy of the partners is an _______ account.
(a) nominal A/c
(b) personal A/c
(c) liability
(d) goodwill.
Answer:
(b) personal A/c

Question 25.
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 26.
Payment of credit balance of partners Capital Account at the time dissolution of a firm is made to
(a) partners
(b) firm
(c) wife
(d) none of these
Answer:
(a) partners

Question 27.
Realisation expenses are recorded in which side of Realisation Account?
(a) Liabilities
(b) Assets
(c) Debit
(d) Credit
Answer:
(b) Assets

Question 28.
At the time of dissolution of the firm book value of assets is recorded in which side of the Realisation A/c?
(a) Debit side
(b) Credit side
(c) Liabilities side
(d) Assets side
Answer:
(a) Debit side

Question 29.
Realisation Account is a
(a) Personal A/c
(b) Nominal A/c
(c) Real A/c
(d) None of these
Answer:
(b) Nominal A/c

Question 30.
On the dissolution of a firm, Partners Capital A/c is closed through
(a) Realisation A/c
(b) Drawing A/c
(c) Bank A/c
(d) None of these
Answer:
(c) Bank A/c

Question 31.
Expenses on the dissolution of a firm is called
(a) Realisation expense
(b) Legal expense
(c) Loss expenses
(d) None of these
Answer:
(a) Realisation expense

Question 32.
A firm can be voluntarily dissolved by the partners
(a) on majority’s decision
(b) on \(\frac{3}{4}\) of the member’s decision
(c) on \(\frac{1}{2}\) of the member’s decision
(d) none of these
Answer:
(b) on \(\frac{3}{4}\) of the member’s decision

Question 33.
On the firm’s dissolution which one of the following A/c should be prepared at the last?
(a) Realisation A/c
(b) Cash A/c
(c) Capital A/c
(d) Loan A/c
Answer:
(a) Realisation A/c

Question 34.
On dissolution, Goodwill A/c is transferred to
(a) Realisation A/c
(b) Capital A/c
(c) Drawing A/c
(d) Loan A/c
Answer:
(a) Realisation A/c

Question 35.
At the time of dissolution of a firm. Balance of general reserve shown in the Balance sheet is credited to
(a) Realisation A/c
(b) Creditors A/c
(c) Capital A/c
(d) Profit & Loan A/c
Answer:
(c) Capital A/c

Question 36.
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:
(b) Cash A/c

Question 37.
On dissolution of a firm. Bank overdraft is transferred to
(a) Cash A/c
(b) Bank A/c
(c) Realisation A/c
(d) Capital A/c
Answer:
(c) Realisation A/c

Question 38.
On dissolution of a firm, Partners Loan A/c is transferred to
(a) Realisation A/c
(b) Capital A/c
(c) Current A/c
(d) None of these
Answer:
(c) Current A/c

Question 39.
Shares may be issued
(a) at par
(b) at premium
(c) at discount
(d) all of these
Answer:
(d) all of these

Question 40.
Equity shareholders are _______ of the company.
(a) Bankers
(b) Creditors
(c) Debtors
(d) Owners
Answer:
(d) Owners

Question 41.
Money received from a dead man’s legacy is called
(a) Legacy
(b) Honorarium
(c) Donation
(d) Subscription
Answer:
(a) Legacy

Question 42.
Payment of honorarium to the secretary is:
(a) Capital expenditure
(b) Revenue expenditure
(c) Cash expenditure
(d) Deferred Revenue Expenditure
Answer:
(b) Revenue expenditure

Question 43.
Interest is to be given a partner to the firm in the absence of partnership deed.
(a) 5%
(b) 6%
(c) 8%
(d) 9%
Answer:
(b) 6%

Question 44.
Interest on capital will be given to the partners in the absence of a partnership agreement
(a) 5%
(b) 6%
(c) 8 %
(d) nome of these
Answer:
(d) nome of these

Question 45.
The current account is:
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer:
(a) Personal A/c

Question 46.
Drawings of the partners debited to:
(a) Partners capital A/c
(b) Profit & Loss A/c
(c) P & L appropriate A/c
(d) Revaluation A/c
Answer:
(a) Partners capital A/c

Question 47.
Interest on parter’s capital is to be credited
(a) Profit & Loss A/c
(b) Realisation A/c
(c) Partners Capital A/c
(d) Revaluation A/c
Answer:
(c) Partners Capital A/c

Question 48.
Excess of real profit on general profit is called
(a) Super profit
(b) Definite profit
(c) Abnormal profit
(d) General profit
Answer:
(a) Super profit

Question 49.
A and B are the partners of profit is divided in 3 : 1. They give a \(\frac{1}{4}\) part of profit in future and admitted in. New profit-distribution ratio is:
(a) Explanation/Working
(b) A \frac{81}{16}: B \frac{4}{16}: C \frac{4}{16}
(c) \(A \frac{10}{16}: B \frac{2}{16}: C \frac{4}{16}\)
(d) \(A \frac{8}{16}: B \frac{9}{16}: C \frac{10}{16}\)
Answer:
(a) Explanation/Working

Question 50.
X and Y are partners of profit into 3 : 2. Z become partner for \(\frac{1}{5}\) share Z takes from X \(\frac{3}{20}\) and from Y \(\frac{1}{20}\). Then new profit ratio is:
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6 : 10 : 4
(d) 10 : 6 : 4
Answer:
(a) 9 : 7 : 4

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.
What Journal entry will be recorded for the amount payable to a deceased partner?
Answer:
Profit and Loss of Suspense A/c … Dr.
To deceased partner’s capital A/c
(Being deceased partner’s capital A/c credited with his share in profit)

Question 2.
On dissolution, what entry is passed if a partner takes over an asset of the firm?
Answer:
Partner’s capital A/c …Dr.
To Realisation A/c
(Being assets were taken over by partners.)

Question 3.
State four features of Receipts and Payments Account.
Answer:
Following are the four features of Receipt and Payment Account:

• It is a Real Account
• It records all receipts whether it Revenue or capital in nature in the debit side
• It records all Payments in credit side, whether it is revenue or capital in native
• It doesn’t record any non-cash item. i.e. Depreciation, outstanding etc.

Question 4.
State four features of a partnership.
Answer:
Following are the essential features of a partnership firm:

• Two or More Persons: There must be two or more competent Persons to form a Partnership firm.
• Agreement between the Partners: Partnership is created by an agreement which forms the basis of mutual rights and duties of Partners. This agreement may be either oral or in writing.
• Engagement in legal business: The Partnership should be for carrying on some legal business with the intention of earning profits.
• Sharing of Profit: Profit earned should be divided amongst Partners in the agreed Profit sharing ratio.

Question 5.
Explain three factors affecting goodwill.
Answer:
Some Following Factors affecting the value of goodwill.

• Location: A Favourable location of the business helps to a great extent in attracting customers.
• Nature of Business: The nature of the business also affects the value of goodwill.
• Time: An older business will have more goodwill since it is better known to the customers.
• Risk Involved: The more the risk involves in the business, less the nature of goodwill.

Question 6.
Distinguish between the Average Profit Method and Super Profit Method of calculating goodwill.
Answer:
Distinguishment between Super profit method and Average profit method of calculating goodwill. Super profit method Under this method, super profits constitute the basis of calculation of the value of goodwill. And hence, goodwill is calculated by multiplying the super-profits by a reasonable number of years.
Formula:
Goodwill = Super profit × Agreed on number of year’s purchase.
Where Super profit = Actual average profit – Normal profit.
Average profit method: Under average profit method, goodwill is valued on the basis of the agreed number of years’ because of the average profits of the last few years.
Formula:
Goodwill = Average profit × Number of years purchase.

Question 7.
How will you calculate the amount due to a deceased partner?
Answer:

Question 8.
A, B and C are partners sharing the profit in the ratio of 3 : 2 : 1. They admit D for 1/6 the share. It is agreed that C would retain his original share. Calculate New Ratio.
Answer:

Question 9.
P, Q and R are partners sharing profits in the ratio of 5 : 4 : 3. Q retires and his share was divided equally between P and R. Calculate new profit sharing ratio of P and R.
Answer:
Q’s Share will be divided between P and R equally:

Question 10.
Distinguish between the dissolution of partnership and dissolution of the firm.
Answer:
Difference between the dissolution of partnership and dissolution of firm are as fellow:

• Change in relation: The dissolution of the firm implies a complete break-down of the partnership relationship between all the partners whereas dissolution of the partnership merely involves a change in the relation of the partners.
• Continuance of business: In the case of dissolution of a firm the business comes to an end whereas in case of dissolution of partnership the business of the firm is continued.
• Effect: Dissolution of partnership does not necessarily mean the dissolution of the firm whereas dissolution of the firm necessarily implies the dissolution of a partnership.
• Closure of Books of Accounts: On dissolution of the firm all accounts books are closed whereas in case of dissolution of partnership closure of books is not required.
• Nature: Dissolution of the partner is voluntary whereas dissolution of the firm is voluntary and compulsory.
• Court order: The firm may be dissolved by the order of the court whereas dissolution of the partnership is a process of reconstitution.
• Disposal of Assets and Liabilities: In case of dissolution of partnership assets and liabilities are revalued and new Balance sheet is drawn. But in case of dissolution of a firm, assets are realised and liabilities are paid off.

Question 11.
In what circumstance can a firm be dissolved?
Answer:
Following are the circumstances under which a firm can be dissolved

• Retirement of any of the partner
• Death of any of the partner
• Any of the partners declared as insolvent
• The incapability of any partner
• Completion of the venture
• At the expiry of the term of the partnership.

Question 12.
State the ways of redemption of debentures.
Answer:

• Payment in annual Installment
• Purchase own debenture in the open market

Question 13.
State two objectives of Financial Statements.
Answer:
Two objectives of Financial statements

• Source of Financial Information
• Help in Financial Forecasting
• Information about Earning capacity.

Question 14.
State two limitations of analysis of Financial Statement.
Answer:
Two Limitation of Financial Analysis

• Lack of Preciseness
• The problem of Interpretation.

Question 15.
State two objectives of ratio analysis.
Answer:
Two objectives of ratio analysis

• To measure the profitability of the concern
• To assess the solvency of the business
• Facilitate comparative analysis.

Question 16.
Give two examples of cash flow from operating activity.
Answer:
Two examples

• Cash sale of goods
• Receipt from debtors.

Question 17.
What do you mean by Fixed Charges and Floating Charges?
Answer:
Fixed charges are made on specific assets of a company, on the other hand. Floating charges are made on
General assets of a company.

Question 18.
What is the difference between Reserve and Provision?
Answer:

Question 19.
What is meant by Analysis of Financial Statement?
Answer:
The analysis is the process of critically examining the accounting information given in financial statements. For this purpose of analysis, individual items are studies, their inter-relationship with other related figures is established.
According to Finley and Miller,”Financial analysis consists in separating facts according to some definite plan, arranging them in groups according to certain circumstances and then presenting them in a convenient and easily readable and understandable form.”

Question 20.
What is meant by Comparative Financial Statement?
Answer:
Comparative Financial Statement: Statement showing financial data of Balance Sheet or profit & loss statement for two or more than two years, placed side by side to facilitates comparison is called comparative financial statements. This type of analysis is called horizontal analysis.

Question 21.
Distinguish between preference share and equity share.
Answer:

Question 22.
State any three differences between shareholders and debenture holders.
Answer:

Question 23.
Why is Cash flow statement prepared?
Answer:
Cash Flow Statement is one of the important tools of cash management because it throws light on cash inflows of cash equivalents during a specific period. This statement exhibits the flow of incoming cash. This statement assesses the ability of the enterprise to generate cash and utilise the cash. And so cash flow statement is one of the tools for assessing the liquidity and solvency of the enterprises.

Question 24.
Current Ratio is 2 : 1. Working Capital is Rs. 1,50,000. Calculate the amounts of current assets and current liabilities.
Answer:

Question 25.
What do you mean by the company? State its essential features.
Answer:
A company means a company incorporated or registered under the Companies Act, 2013 or under any other earlier companies Act.

It a voluntary association of persons formed for some common purpose having a capital divided into transferrable shares. It is created by law and effected by law. A company may be defined as an artificial person created by law, having perpetual succession and a common seal.

According to L.H. Haney. “A company is an artificial person created by law having a separate entity with perpetual succession and a common seal. It is a voluntary association of individuals for-profits, having a capital divided into transferrable shares ownership of which is the condition of membership.”

Following are the essential features of the company:

• Association of persons: A company is an association of persons, usually for profit.
• Artificial person: It is an artificial person created by law.
• Separate legal entity: It has a separate legal entity from its members. So it can be sued in its own name. It can own or dispose of the property in its own name.
• Limited liability: It has limited liability. Liability of members is limited to the extent of the face value of shares need by them.
• Perpetual succession: A company being an artificial person never dies. It is a creation of law, so, its existing law. It is not affected by the death of shares held by them.
• Common seal: It has a common seal which acts as the official signature of the company. Any document without the common seal of the company is not binding on the company.
• Transferability of shares: The capital of a company is divided into shares. The shares of a company are transferable except in case of a private company.
• Separate ownership and management: In companies, there is a divorce between ownership and management. It is owned by members (shareholders) but it is managed by the Board of Directors who are elected by shareholders. Members of a company can not directly participate in the management of the business of the company.

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.
Form the following statement of profit and loss of the year ended 31st March 2014, prepare a comparative statement of profit and loss of X Ltd:

Answer:

Question 27.
Receipts and Payments A/c of Maitree Club for the year ended March 31, 2013, shows that the subscriptions received were Rs. 25,000. Additional information is as follows:

Ascertain the amount of income from a subscription for the year 2012-13 and show how relevant items of subscriptions appear in Opening and Closing Balance Sheet.
Answer:
Statement showing Income from a subscription for the year ended 2012-13

Question 28.
A, B and C are equal partners. Their fixed capitals as on 1st April. 2012 were A Rs. 10,000, B Rs. 20,000 and C Rs. 30,000. Profits for the year 2012-13 amounted to Rs. 12,000 which were distributed. Give the necessary Journal entries if the interest on capital was credited @ 10% p.a. instead of 12% p.a.
Answer:

Question 29.
X, Y and Z are partners in a firm in the ratio of 3 : 2 : 1. On 1st April 2013 they decided to share profits in future in the ratio of 7 : 5 : 4. On that date general reserve is Rs. 76,000 and profit on revaluation of assets and liabilities being Rs. 68,000. It was decided that adjustment should be made without altering the figures in the Balance Sheet. Make adjustment by one Single Journal entry.
Answer:

Question 30.
A, B and C are partners sharing profits and losses equally. They dissolved the firm on 30th December 2013 on which date their positions were as under:

All the assets realise less than 10% book value. Creditors were paid in full. Expenses of realisation amounted to Rs. 500. Prepare Realisation account. Partners Capital account and cash or bank account.
Answer:

Question 31.
Rudra Company Ltd. issued 35,000 equity shares of Rs. 10 each at a premium of Rs. 2 payable as follows:
On Application – Rs. 3
On Allotment – Rs. 5
The balance on the first call
Record Journal entreis.
Answer:

Question 32.
Urvashi Ltd. purchased one established business for Rs. 50,000 payable Rs. 15,000 in cash and the balance by Issue of 9% debentures of Rs. 100 at a discount of 10%. Give journal entries in the books of Urvashi Ltd.
Answer:

Question 33.
From the following data, prepare a statement of profits in the comparative form:

Answer:

Bihar Board 12th Accountancy Model Papers

Bihar Board 12th Accountancy Model Question Paper 2 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 correct option on the OMR Sheet. (50 × 1 = 50)

Question 1.
Receipts and Payments Account usually indicates:
(a) Surplus
(b) Capital fund
(c) Debit Balance
(d) Credit Balance
Answer:
(c) Debit Balance

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

Question 3.
Outstanding subscription is a:
(a) Income
(b) Asset
(c) Both ‘A’ and ‘B’
(d) None of these
Answer:
(b) Asset

Question 4.
Income and Expenses related to the prize fund is shown in:
(a) Income and Expenditure Account
(b) The asset side of the Balance sheet
(c) Liabilities side of the Balance sheet
(d) Cash Account
Answer:
(a) Income and Expenditure Account

Question 5.
Income and Expenditure Account records:
(a) All cash receipts and payments
(b) All credit receipts and payments
(c) All cash and credit receipts and payments
(d) None of these
Answer:
(a) All cash receipts and payments

Question 6.
Which sequence is correct and appropriate?
(a) Cashbook, Receipts & Payment Account, Income & Expenditure Account and Balance sheet.
(b) Receipts and Payments Account, Cash Book, Income and Expenditure Account and Balance sheet
(c) Income and Expenditure Account, Receipts and Payments account, cash book and Balance sheet.
(d) None of these
Answer:
(c) Income and Expenditure Account, Receipts and Payments account, cash book and Balance sheet.

Question 7.
The main aim of the Not-for-Profit organisation is:
(a) To earn profit
(b) To serve society
(c) To earn profit and serve society
(d) All the above
Answer:
(b) To serve society

Question 8.
Payment of Honorarium to Secretary is a:
(a) Revenue Expenditure
(b) Capital Expenditure
(c) Both
(d) None of these
Answer:
(a) Revenue Expenditure

Question 9.
Which of the following statements is correct?
(a) There is no difference between Cash Book and Receipts and Payments Account
(b) Receipts and Payments Account is prepared after Cash Book
(c) Receipts and Payments Account is maintained by Non-trading concern whereas Cash Book is maintained by the Trading concern
(d) Receipts and Payment Account is prepared before Cash Book
Answer:
(c) Receipts and Payments Account is maintained by Non-trading concern whereas Cash Book is maintained by the Trading concern

Question 10.
When the time of withdrawals is not mentioned, interest on drawings is charged:
(a) For 6 1/2 months
(b) For 6 months
(c) For 5 1/2 months
(d) For 12 months
Answer:
(b) For 6 months

Question 11.
Recording of the unrecorded asset on the reconstitution of a partnership firm will be.
(a) Again to the existing partner
(b) A loss to the existing partner
(c) Neither a gain nor a loss to the existing partner
(d) None of these
Answer:
(b) A loss to the existing partner

Question 12.
Current Account is:
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) None of these
Answer:
(a) Personal Account

Question 13.
In which ratio, the cash brought in for goodwill by the new partner is shard by the existing partners.
(a) Profit-Sharing Ratio
(b) Capital Ratio
(c) Sacrificing Ratio
(d) None of these
Answer:
(c) Sacrificing Ratio

Question 14.
A, B and C are three partners sharing profits and losses in the ratio of 4 : 3 : 2. D is admitted for 1/10th share, the new ratio will be:
(a) 10 : 7 : 7 : 4
(b) 5 : 3 : 2 : 1
(c) 4 : 3 : 2 : 1
(d) None of these
Answer:
(c) 4 : 3 : 2 : 1

Question 15.
The executors will be paid interest on the amount due from the date of death of the partner @
(a) 4%
(b) 5%
(c) 6%
(d) 7%
Answer:
(c) 6%

Question 16.
Realisation Account is a:
(a) Personal Account
(b) Nominal Account
(c) Real Account
(d) None of these
Answer:
(b) Nominal Account

Question 17.
A firm can be voluntarily dissolved by the partners:
(a) On Majority basis
(b) On 3/4 Member’s decision
(c) On 1/2 Member’s decision
(d) None of these
Answer:
(a) On Majority basis

Question 18.
Unrecorded liabilities when paid will be shown in:
(a) The debit side of Realisation Account
(b) Debit side of Bank Account
(c) Credit side of Realisation Account
(d) Credit side of Bank Account
Answer:
(a) The debit side of Realisation Account

Question 19.
Who are the owners of the company?
(a) Equity shareholders
(b) Preference shareholders
(c) Debenture holders
(d) Both A & B
Answer:
(a) Equity shareholders

Question 20.
Forfeiture of shares results in the reduction of:
(a) Paid-up capital
(b) Authorised capital
(c) Fixed Assets
(d) Reserve capital
Answer:
(a) Paid-up capital

Question 21.
Profit on cancellation of own debentures is transferred to:
(a) Profit and Loss Account
(b) Profit and Loss Appropriation Account
(c) General Reserve Account
(d) Capital Reserve Account
Answer:
(d) Capital Reserve Account

Question 22.
Interest on Sinking fund Investment is credited to:
(a) Profit and Loss Account
(b) Sinking fund Account
(c) General Reserve Account
(d) Sinking fund Investment Account
Answer:
(b) Sinking fund Account

Question 23.
Discount on issue of debentures is:
(a) Fixed Asset
(b) Current Asset
(c) Real Asset
(d) Factitious Asset
Answer:
(d) Factitious Asset

Question 24.
In case of issue of debentures as collateral security for a loan from the bank which account will be debited:
(a) Bank Account
(b) Bank Loan Account
(c) Debenture Account
(d) Debentures Suspense Account
Answer:
(c) Debenture Account

Question 25.
According to SEBI guidelines, a company will have to create debenture redemption reserve equivalent to the amount of the following percentage of debenture issued:
(a) 40%
(b) 50%
(c) 70%
(d) 100%
Answer:
(b) 50%

Question 26.
As per the provisions of Companies Act, 2013 under which section, the final Accounts of a company is prepared:
(a) 128
(b) 210
(c) 129
(d) 212
Answer:
(b) 210

Question 27.
Out of the following which parties are interested in financial statement?
(a) Managers
(b) Financial Institutions
(c) Creditors
(d) All of these
Answer:
(d) All of these

Question 28.
Debt-Equity Ratio is:
(a) Liquidity ratio
(b) Activity Ratio
(c) Solvency Ratio
(d) Operating ratio
Answer:
(c) Solvency Ratio

Question 29.
When the opening stock is 50,000 Rs closing stock 60,000 Rs and cost of goods sold is 2,20,000 Rs then stock Turnover Ratio is:
(a) 2 times
(b) 3 times
(c) 4 times
(d) 5 times
Answer:
(c) 4 times

Question 30.
Cash flow statement is related to:
(a) AS – 3
(b) AS – 6
(c) AS – 09
(d) AS – 12
Answer:
(a) AS – 3

Question 31.
Which of the following activity comes under Financial Activities?
(a) Receipts from the issuance of Equity shares
(b) Cash sales
(c) Bank overdraft
(d) Purchase of Debentures
Answer:
(a) Receipts from the issuance of Equity shares

Question 32.
Which of the following item is not considered as cash equivalents?
(a) Bank overdraft
(b) Commercial paper
(c) Treasury Bills
(d) Investment
Answer:
(d) Investment

Question 33.
Cash from operating activities will decrease due to:
(a) Increase in current Assets
(b) The decrease in current liabilities
(c) Neither of the two
(c) Both (a) and (b)
Answer:
(b) The decrease in current liabilities

Question 34.
The term Quick assets do not include:
(a) Stock
(b) Debtors
(c) B/R
(d) Cash and Bank Balance
Answer:
(a) Stock

Question 35.
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 36.
The nominal capital is known as:
(a) Authorised Capital
(b) Registered Capital
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 37.
When a partner takes responsibility to make the payment of any outside liability of a firm, the account credited will be:
(a) Realisation account
(b) Cash Account
(c) partner’s capital Account
(d) None of these
Answer:
(c) partner’s capital Account

Question 38.
Cash balance shown in the Balance sheet is shown on the dissolution of the firm in:
(a) Realisation Account
(b) Cash Account
(c) Capital Account
(d) Profit and Loss Account
Answer:
(b) Cash Account

Question 39.
‘x’ and ‘y’ share profit in the ratio of 3 : 2. ‘z’ was admitted as a partner who gets 1/5 share, z acquires 3/20 share from ‘x’ and 1/20 from y. The new profit sharing ratio will be:
(a) 9 : 7 : 4
(b) 8 : 8 : 4
(c) 6 : 10 : 4
(d) 10 : 6 : 4
Answer:
(a) 9 : 7 : 4

Question 40.
partner’s current Account is prepared when the capital of partners is maintained under:
(a) Fluctuating basis
(b) Fixed basis
(c) In both of the situations
(d) None of these
Answer:
(a) Fluctuating basis

Question 41.
The amount received from the issue of debentures is:
(a) Capital receipts
(b) Revenue Receipts
(c) Capital and Revenue Receipt
(d) Neither capital nor revenue
Answer:
(a) Capital receipts

Question 42.
The Ideal Quick Ratio is:
(a) 2 : 1
(b) 1 : 1
(c) 0.5 : 1
(d) None of these
Answer:
(b) 1 : 1

Question 43.
Goodwill is:
(a) Fixed Assets
(b) Intangible Assets
(c) Fictitious Asset
(d) Both (a) & (b)
Answer:
(b) Intangible Assets

Question 44.
Provision for Taxation is:
(a) Current liability
(b) Interval Reserve
(c) Both (a) & (b)
(d) None of these
Answer:
(a) Current liability

Question 45.
Interest payable on debentures is:
(a) A charge against profit
(b) Appropriation of profit
(c) Both (a) & (b)
(d) None of these
Answer:
(a) A charge against profit

Question 46.
The formula of sacrificing ratio is:
(a) New Ratio-old Ratio
(b) Old Ratio-New Ratio
(c) Old Ratio-gaining Ratio
(d) None of these
Answer:
(b) Old Ratio-New Ratio

Question 47.
Subscription received in Advance is:
(a) Asset
(b) Liability
(c) Income
(d) None of these
Answer:
(b) Liability

Question 48.
Right shares are the shares which:
(a) Are issued to directors of the company
(b) Are issued to existing shareholders of the company
(c) Are issued to promoters in consideration of their services
(d) Are issued to vendors for purchasing assets
Answer:
(c) Are issued to promoters in consideration of their services

Question 49.
When the current ratio is 2 : 5 and the amount of current liabilities is 25000 Rs, what is the amount of current assets?
(a) ₹ 62,500
(b) ₹ 12,500
(c) ₹ 10,000
(d) None of these
Answer:
(b) ₹ 12,500

Question 50.
Which one of the following is a non-cash item?
(a) Depreciation
(b) Goodwill wrote off
(c) Both (a) & (b)
(d) None of these
Answer:
(a) Depreciation

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 × 3 = 30)

Question 1.
What is Income and Expenditure Account?
Answer:
Income and expenditure Account is a Nominal Account. It is a summary of incomes and expenses for a
particular accounting period.lt is like a profit and loss account of a business concern. Thus, an income and expenditure Account is a revenue account of a non-profit organisation. It serves the same purpose as the profit and loss Account in trading concerns.

Question 2.
What are the Current Assets?
Answer:
Current assets is a balance sheet account that represents the value of all assets that can reasonably expect to be converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, prepaid, marketable securities etc.

Question 3.
Define the Sinking fund.
Answer:
A sinking fund is a means of repaying funds borrowed through a bond issue through periodic payments to a trustee who retires part of the issue by purchasing the bonds in the open market. Rather than the issuer repaying the entire principal of a bond issue on the maturity date, another company buy back a portion of the issue annually and usually at fixed par value or at the current market value of the bonds whichever is less.

Question 4.
Distinguish between the Current Ratio and Quick Ratio.
Answer:
The main difference between the current ratio and the quick ratio is that the letter offers a more conservative view of the company’s ability to meets its short-term liabilities with its short-term assets because it does not include inventory and other current assets that are more difficult to liquidate. By excluding inventory the quick ratio focuses on the company’s more liquid assets.

Question 5.
Explain four characteristics of a Partnership firm.
Answer:
Following are the feature of a partnership firm:

• Two or more persons
• Agreement
• Profit-sharing
• Mutual agency.

Question 6.
What is Super Profit?
Answer:
Super profit is the excess of average profits over normal profits. Under this method, goodwill is calculated on the basis of super-profits.

Question 7.
What is a Financial Statement?
Answer:
The end product of financial accounting is financial statements. Financial statements are organised summaries of detailed information about the financial position and performance of enterprises for a particular period. Financial statements are also called financial report. The term ‘Financial statement’ normally refers to two basic statements, namely.

• Balance sheet
• Statement of profit loss.

Question 8.
What is Cash Flow Statement?
Answer:
Meaning of Cash Flow Statement: A statement of changes in financial position on a cash basis is commonly known as the cash flow statement. It shows the changes in cash position from one accounting period to another. In other words, the cash flow statement summarises the causes of changes in cash and cash equivalents position between dates of two Balance Sheets. It indicates the sources and uses of cash. This statement attempts to analyse the transactions of the firm in terms of cash. Thus, a Cash Flow Statement can be defined as a statement which summarises sources of cash inflows and uses of cash outflows of the firm during a particular period of time, says, a month or a year.

Question 9.
Distinguish between Realisation Account and Revaluation Account.
Answer:
Revaluation Account is prepared only when there is any change in the value of asset and liabilities of the partnership firm at the time of admission, retirement, and death of a partner. On the other hand, Realisation Account is opened when the firm goes into liquidation, so as to close the books of account and also to compute the effect (profit or loss) arising due to the realisation of assets and settlement of liabilities.

Question 10.
What is over-subscription of shares?
Answer:
When the number of shares applied for is more than the number of shares offered to the public the issue as said to be over-subscribed. However, a company cannot allot shares more than those offered for subscription.

Question 11.
Distinguish between Gaining Ratio and Sacrificing Ratio.
Answer:
Difference between sacrificing Ratio and Gaining ratio
Sacrificing Ratio:

• It is the ratio in which the old partners surrender their share of profit in favour of the new partner.
• It is calculated at the time of admission of a new partner.
• The purpose of calculating sacrificing ratio is to calculate the share of goodwill payable to old partners at the time of admission of a partner.
• Old Partner’s Capita! Account increase with the amount received as goodwill. New partner losses.
• It is calculated by deducting the new ratio from the old ratio.
• New Partner’s Capital A/c Dr. To Old Partner’s Capital A/c (In sacrificing ratio)

Gaining Ratio:

• It is the ratio in which the remaining partners share the retiring partner’s share of profit.
• It is calculated at the time of retirement or death of a partner.
• The purpose of calculating gaining ratio is to calculate the share of goodwill payable to the retiring partner by each of the remaining partners.
• Retiring partner gains and the remaining partners capital reduces, so they lose.
• It is calculated by deducting the old ratio from the new ratio.
• Remaining Partner’s Capital A/cs Dr. To Retiring Partner’s Capital A/c.

Question 12.
What is the forfeiture of shares?
Answer:
The term ‘forfeit’ means taking away of a thing or property on breach of a condition or default. A shareholder is liable to pay all the calls made by the company within the stipulated time. If a shareholder fails to pay allotment money and/or call money due on the shares held by him the company has right to forfeit such shares. But the company will have to follow the procedures specified in its Articles of Association. To forfeit a share means to cancel the allotment of defaulting shareholders.

Question 13.
Define Prospectus.
Answer:
The prospectus is the basis of the agreement between the company and the shareholders who take the shares on the strength of the prospectus. If they have been misleading by any statement in or omission of a material fact from the prospectus, they may

• hold the directors responsible for the loss that he may have suffered and.
• rescind the contract for taking the shares.

Question 14.
Distinguish between Revenue profit and Capital profit.
Answer:
Following are the main difference between capital profit and revenue profit.
Mode of Earning: Capital profit is earned by selling of assets, shares and debentures at a price more than their book value and face value. Revenue profit is earned in the ordinary course of business.

Distribution: Capital profit is not available for the distribution to shareholders as a dividend. Revenue profit is available for the distribution to shareholders a dividend.

Use: Capital profit is transferred to capital reserve and used for meeting capital losses. Revenue profit is used to distribute dividend and create reserve and fund for various purpose.

Treatment: Capital profit is shown on the liabilities side of the balance sheet. Revenue profit is shown as a debit balance on the debit side of the trading and profit & loss accounts and asset side of the balance sheet as an accumulated loss.

Question 15.
What is Financial Analysis?
Answer:
The financial analysis consists in separating facts according to some definite plan arranging them in groups according to certain circumstances and then presenting them in a convenient and easily readable and understandable form.

Question 16.
Distinguish between Cash Book and Receipts and Payments Account.
Answer:
Difference between Receipts and Payment Account and Cash Book.

Question 17.
What is an unlimited liability?
Answer:
The indefinite extent of liability to pay a firms debts or obligations, extending beyond the investments of the firm’s owner partners of shareholders to their personal assets. This extent of liability is assumed in an unlimited liability.

Question 18.
Distinguish between charge against profit and Appropriation of profit.
Answer:
Difference between Appropriation of profit and charge against profit.

Question 19.
Distinguish between Fixed capital and Fluctuating capital.
Answer:
Distinguish between Fixed Capital and Fluctuating Capital.

Question 20.
Write four items relating to Not-for-Proft organisation.
Answer:
Following are four items relating to Non-for-Profit organisations.

• Not-for-profit organisations are established for the welfare and service of society and their members.
• They promote art, culture, religion, education sports etc.
• They do not operate with the objective of earning profit.
• These organisations are set-up as charitable societies, trust or club etc.

Question 21.
Distinguish between ‘Charge against profit’ & ‘Appropriation out of profit.’
Answer:
Distinguish between “charge against profit” and Appropriation out of profit as discussed below.

Question 22.
Why the valuation of goodwill is required? Give a minimum of three reasons.
Answer:
The need for valuation of goodwill as discussed below:

• If any partner is admitted
• If any partner retires from the firm
• If any partner dies
• If any firm is sold
• If a firm is converted into a Company.

Question 23.
A, B and C are partners sharing profits in the ratio of \(\frac{1}{2}: \frac{1}{3}: \frac{1}{6}\). Find out new profit sharing ratio if B retires.
Answer:
Old ratio of A, B and C = \(\frac{1}{2}: \frac{1}{3}: \frac{1}{6}\) or, \(\frac{3}{6}: \frac{2}{6}: \frac{1}{6}\) = 3 : 2 : 1
B. Retires, New Radio = 3 : 1

Question 24.
Under which circumstances, a partnership firm is deemed to be dissolved?
Answer:
Under the following circumstances, a partnership firm is deemed to be dissolved

• Retirement of any of the partner
• Death of my partner
• Any of partner declared as insolvent
• In capability of any partner
• completion of the ventures
• At the expiry of the term of the partnership.

Question 25.
A, B and C were partners sharing profits in the ratio of \(\frac{2}{6}, \frac{1}{2}\) and \(\frac{1}{6}\). A retires and surrenders \(\frac{2}{3}\)rd of his share in favour of B and remaining in favour of C. Calculate new ratio and gaining ratio.
Answer:
A’s share (2/6) will be divided between B and C in the ratio of \(\frac{2}{3}: \frac{1}{3}\)
B’s gain = \(\frac{2}{3}\) of \(\frac{2}{6}: \frac{4}{18}\);
C’s gain = \(\frac{1}{3}\) of \(\frac{2}{6}=\frac{2}{18}\)
New share = old share + gaining share
B’s new share = \(\frac{1}{2}+\frac{4}{18}=\frac{9+4}{18}=\frac{13}{18}\)
C’s new share = \(\frac{1}{6}+\frac{2}{18}=\frac{3+2}{18}=\frac{5}{18}\)
New ratio of B and C = \(\frac{13}{18}: \frac{5}{18}\) or 13 : 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.
From the following information, calculate goodwill by (i) Capitalization method and (ii) at 3 years purchase of super-profits:
(i) Total Assets ₹ 10,00,000
(ii) External liabilities ₹ 1,80,000
(iii) Normal Rate of Return 10%
(iv) Average Net Profit of the last five years ₹ 1,00,000
Answer:
Calculation of Goodwill by using capitalization method.

10,00,000 – 820,000
Goodwill = 120,000
Net Assets = Total Assets – Liabilities = 10,00,000 – 180,000 = 820,000
Calculation of Goodwill by using super profit methods.

Super profit = 100,000 – 82,000 = 18,000
Goodwill = 180,000

Question 27.
An Ltd. company issued 5000 shares of ₹ 100 each at a premium of ₹ 5 per share payable as ₹ 20 on Application, ₹ 35 on the allotment (including premium), ₹ 30 on the first call and the balance on the second call. All the amounts were duly received except the first call money on 500 shares and the final call money on 700 shares. These shares have been forfeited and re-issued at ₹ 80 per share. Give Journal entries to record the above transactions.
Answer:

Question 28.
What is Cash Flow statement? How is it prepared?
Answer:
Meaning of cash flow statement: cash flow statement can be defined on a statement which summarises sources of cash inflows and outflows of cash and cash equivalent of the firm from various business activities during a given period. Thus, this statement exhibits the flow of incoming and outgoing cash.

Calculation of Cash Flows from Operating Activities: Almost all the companies prepare its Income Statement on the accrual basis of accounting under which revenues are recorded when earned and expenses are recorded when incurred. Because of this, net profit, as shown by Income Statement will not be equal to cash generated by operating activities. Hence, there is a need to calculate cash flows from operating activities. AS-3 (Revised) suggests two methods of reporting cash flows from operating activities:
(1) Direct Method, and (2) Indirect Method.

1. Direct Method: Under the direct method, major classes of gross cash receipts and gross cash payments are considered. Under this method, cash receipts from operating activities, i.e., cash received from the sale of goods and rendering services, cash collected from customers and cash received from trading commission and royalties and cash payments for operating activities such as payment to creditors for goods and services, employees for their services etc. are disclosed. The difference between cash receipts and cash payments is the net cash flow from operating activities. A cash flow statement based on the direct method is a Profit & Loss Account on a cash basis.

2. Indirect Method: Under this method, net profit or loss is adjusted for the effects of transactions of noncash nature and non-operating nature and changes in current assets and liabilities.

Question 29.
Calculate current Assets of a company from the following information:
Stock Turnover Ratio = 4 times
Stock at the end is ₹ 20,000 more than stock in the beginning.
Sales ₹ 300,000 and Gross Profit Ratio is 20% of sales.
Current liabilities = ₹ 40,000
Quick Ratio = 0.75
Answer:
Sales 300,000, G.P Ratio = 20%;
Cost of Goods sold = Sales – G.P.;
GP = \(=300,000 \frac{\times 20}{100}=60,000\)
300000 – 60000 = 240000
Stock Turnover Ratio = \($\frac{\text { cost of Goodwill }}{\text { Aug.Stock }}$\)
4 = 240000/Aug.stock
Aug. Stock = 240,000/4 = 60,000
Let op. stock = x
So, cl. stock = x + 20,000
Avg. Stock = \(=\frac{x+x+20,000}{2}\) = 60,000
x + 10,000 = 60,000
x = 60,000 – 10,000 = 50,000
op. Stock = 50,000
Quick Ratio = Liquid Assets/CL. Liabilities
0. 75 = L. A/400,000
L. A. = 30,000
Current Assets = L.A + C.L. Stock = 30,000 + 70,000
C.A = 10,000

Question 30.
From the following particulars, Calculate Cash Flow from Investing Activities.
Investment at the beginning of the Period: 5,80,000
Investment at the end of the Period: 3,40,000
During the year the company had sold 50% of its investment held in the beginning of the period at a profit of ₹ 90,000
Answer:

Question 31.
Pass Journal entries when shares are issued at a premium.
Answer:
Journal entries where shares are issued at a premium.
I. When share premium is payable with application money.
(i) At the time of receipt of application money.
Bank A/c — Dr.
To share Application A/c
(ii) At the time of transfer of Application Money:
Share Application A/c
To share Capital A/c
To securities premium A/c

II. When the premium is payable on Allotment.
(i) Share Allotment A/c — Dr.
To share Capital A/c
To securities Premium A/c
(ii) On receipt of Allotment Money.
Bank A/c — Dr.
To share Allotment A/c

III. When the premium is payable with share call money.
(i) Share Call A/c — Dr.
To share Capital A/c
To securities Premium A/c
(ii) When call money is received.
Bank A/c — Dr.
To share call A/c

Question 32.
From the following comparative balance sheet prepare cash flow statement as on 31st December 2016.

Depreciation charged on machinery Rs. 5,000
Answer:
Calculation of cash flow statement from operating Activities.

Question 33.
Prepare an imaginary proforma of the cash flow statement.
Answer:
Imaginary proforma of cash flow statement

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Bihar Board 12th Chemistry Model Papers

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

Time : 3 Hours 15 Min
Full 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 indicates full marks.
3. While answering the questions, candidate should adhere to the words limit as far 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 your result will be treated as invalid.
7. In section-B, there are 18 short answer type questions (each carrying 2 marks), out of which only 10 (ten) questions are to be answered Apart from this there are 06 Long Answer type questions (each carrying 5 marks), out of which 3 questions are to be answered.
8. Use of any electronic device is prohibited.

Objective Type Questions

In the following questions no. from 1 to 35, there is only one correct answer against each question. For each question, mark (darken) the correct answer on the OMR Sheet provided to you. (1 x 35 = 35)

Question 1.
How many types of Crystals are found ?
(a) 2
(b) 6
(c) 4
(d) 3
Answer:
(c) 4

Question 2.
Which of the following bond is found in H₂O (ice)?
(a) Hydorgen bond
(b) Metallic bond
(c) Ionic bond
(d) All
Answer:
(a) Hydorgen bond

Question 3.
One Faraday of electricity is equal to how many coulombs ?
(a) 96500
(b) 96550
(c) 94500
(d) 96000
Answer:
(a) 96500

Question 4.
Inverse of resistance is called ………..
(a) Conductance
(b) Resistance
(c) Good conductor
(d) None
Answer:
(d) None

Question 5.
For strong electrolytes λm ………..
(a) increases on dilution
(b) decreases on dilution
(c) remains constant on dilution
(d) All
Answer:
(a) increases on dilution

Question 6.
Chemisorption is ………..
(a) Irreversible in nature
(b) Reversible in nature
(c) Arises due to Van-der-Waals forces
(d) Depends on nature of the gas
Answer:
(a) Irreversible in nature

Question 7.
Chief ore of Iron is ……..
(a) Magnetite (Fe₃O₄)
(b) Haematite (Fe₂O₃)
(c) Siderite (FeCO₃)
(d) Iron pyrite (FeS₄)
Answer:
(b) Haematite (Fe₂O₃)

Question 8.
Which type of ore can be concentrated by Electromagnetic separation method
(a) Non-magnetic particles
(b) Magnetic particles
(c) Sulphide ores
(d) All the above options
Answer:
(b) Magnetic particles

Question 9.
Copper matte contains :
(a) Cu₂S and Cu₂O
(b) Cu₂S and FeS
(c) CuS₂ and Fe₂O₃
(d) Cu₂S and Cu
Answer:
(b) Cu₂S and FeS

Question 10.
Group 15 of Periodic Table includes Nitrogen and …………..
(a) Oxygen
(b) Phosphorous
(c) Carbon
(d) Argon
Answer:
(b) Phosphorous

Question 11.
d-block elements are also known as …………….
(a) Transition elements
(b) Typical elements
(c) Non-transition elements
(d) Alkali metals
Answer:
(a) Transition elements

Question 12.
d-block elements are also known as ………….
(a) Transition elements
(b) Typical elements
(c) Non-transition elements
(d) Alkali metals
Answer:
(a) Transition elements

Question 13.
Zinc is a ………..
(a) Transition element
(b) Lanthanide
(c) Normal element
(d) Element of s-block
Answer:
(c) Normal element

Question 14.
Mn³⁺ is an oxidising agent because………..
(a) half filled K₂-level
(b) Completely filled e_g level
(c) empty d-orbital
(d) All of the above
Answer:
(a) half filled K₂-level

Question 15.
U.P.A.C name of K₂[Zn(OH)₄] is………..
(a) Potassium tetrahydroxoxincate (II)
(b) Zinc di-hydroxide
(c) Zinc hydroxide potassium
(d) None
Answer:
(d) Racemic mixture

Question 16.
The stereo isomens related to each other as non- super imposable mirror images are called
(a) diastereomers
(b) enantiomers
(c) chiral compound
(d) Racemic mixture
Answer:
(a) diastereomers

Question 17.
Chloroform on treatement with O₂ in presence of light gives ………..
(a) Phosphene
(b) Phosgene
(c) Phosphorescence
(d) Methane
Answer:
(b) Phosgene

Question 18.
Alcohols and Phenols are formed when one of the hydrogen atom of Alkane and Arenes are replaced by which group ?
(a) – Cl
(b) – OH
(c) – CHO
(d) – COOH
Answer:
(b) – OH

Question 19.
Glycerol is a …………..
(a) Monohydric alcohol
(b) Di-hydric alcohol
(c) Trihydric alcohol
(d) Tetrahydric alcohol
Answer:
(c) Trihydric alcohol

Question 20.
Simplest hydroxy derivative of Benzene is ………….
(a) Propanol
(b) Phenol
(c) Benzylal cohol
(d) None
Answer:
(b) Phenol

Question 21.
IUPAC name of the compound

(a) 2, 5-dimethyl Phenol
(b) l-Hydroxy-2-methyl toluene
(c) 1-Hydroxy-2, 3-dimethyl benzene
(d) Hydroxy dimethyl benzene
Answer:
(a) 2, 5-dimethyl Phenol

Question 22.
Chloro-ethane on reacting with ammonia gives …………
(a) Ethanamine
(b) Propanamine
(c) Benzylamine
(d) Ethane nitrile
Answer:
(a) Ethanamine

Question 23.
Amides on reduction with LiAlH₄ ………………
(a) Alkanes
(b) Alkylamines
(c) Alcohols
(d) Acids
Answer:
(b) Alkylamines

Question 24.
IUPAC name of HCOOH is …………..
(a) Ethanoic acid
(b) Formic acid
(c) Methanoic acid
(d) Oxalic acid
Answer:
(c) Methanoic acid

Question 25.
IUPAC name of Oxalic acid is …………..
(a) Metanoic acid
(b) Ethanoic acid
(c) Ethanedioic acid
(d) Benzene
Answer:
(c) Ethanedioic acid

Question 26.
The formula of Methylnitrile is ……………
(a) CH₃NC
(b) CH₃CN
(c) C₂H₅CN
(d) C₂H₅NC
Answer:
(b) CH₃CN

Question 27.
Simple Carboxylic acid are soluble in water due to formation of………………………….
(a) Co-Valent bond
(b) Hydrogen bond
(c) Ionic.hood
(d) None
Answer:
(a) Co-Valent bond

Question 28.
The formula of Fructose is ……………
(a) C₆H₁₂O₆
(b) C₁₂H₂₂O₁₁
(c) C₆H₁₂O₅
(d) C₆hH₆O₆
Answer:
(b) C₁₂H₂₂O₁₁

Question 29.
Carbohydrate that yields three to ten mono­saccharides units on hydrolysis are called ………..
(a) Mono-saccharide
(b) Oligo-saccharide
(c) Poly-saccharide
(d) Di-saccharide
Answer:
(a) Mono-saccharide

Question 30.
Amino acid contains two functional groups, one is – COOH and other is …………
(a) – OH
(b) – NH₃
(c) – NH₂
(d) NH₄
Answer:
(b) – NH₃

Question 31.
Polymers of a-amino acid is called …………….
(a) Protein
(b) Peptines
(c) Peptides
(d) Dipeptides
Answer:
(b) Peptines

Question 32.
Polythene is a polymer of ?
(a) Ethane
(b) Ethene
(c) Ethyne
(d) Propene
Answer:
(b) Ethene

Question 33.
Rubber, Starch, Cellulose and Protein are ……………
(a) Synthetic polymers
(b) Natural Polymers
(c) Semi-Synthetic polymers
(d) None of the above
Answer:
(b) Natural Polymers

Question 34.
Buna- N and Buna- S are the types of ……………….
(a) Natural rubber
(b) Synthetic rubber
(c) Polythene
(d) Bakelite
Answer:
(b) Synthetic rubber

Question 35.
The drug used to reduce fever is known as ………………..
(a) Antacid
(b) Analgesic
(c) Anti-pyretic
(d) Anti-biotic
Answer:
(c) Anti-pyretic

Non-Objective Type Questions

Short Answer Type Questions

In this Section, there are 18 Short answer type questions (each carrying 2 marks), out of which answer any 10 questions.

Question 1.
What do you mean by Frenkel’s Defect ?
Answer:
This defect is shown by those ionic solids in which there is a large difference in the size of ions,
e.g. ZnS, AgCl, AgBr, Agl.

Question 2.
What do you mean by an Ideal solution ?
Answer:
Ideal solutions obc, Rault’s law over entire range of concentration. For these solution A_mix H = O and A_mix V = O.
In binary solutions, if A – B interactions are nearly equal to A – A or B – B interactions then it is an ideal solution. Solutions of n -hexane & n-heptane, bromoethane & chloroethane, benzene & toluene, etc., are nearly ideal in behaviour.

Question 3.
Define Osmotic pressure ?
Answer:
The hydrostatic pressure which develops on account of osmosis is called Osmotic pressure or the excess pressure that must be applied on the solution to prevent osmosis is called Osmotic pressure.
Osmotic pressure (π) is directly proportional to molarity (C) of the solution at a given temperature π α C
\(\pi=\mathrm{CRT} \text { or, } \pi=\frac{n_{2}}{\mathrm{V}} \mathrm{RT}\left[\text { where }, \mathrm{C}=\frac{n_{2}}{\mathrm{V}}\right]\)

Question 4.
Why Copper sulphate is not stored in zinc pot ?
Answer:
Zinc is stronger reducing agent than copper. Thus zinc forms zinc sulphate during chemical reaction. Therefore, copper sulphate is not stored in zinc pot.
Zn + CuSO₄ → ZnSO₄ + Cu

Question 5.
In Nernst equation
\(\mathbf{E}=\mathbf{E}^{0}-\frac{\mathbf{R} \mathbf{T}}{\mathbf{n} \mathbf{F}} \mathbf{I n} \frac{[\mathbf{M}]}{\left[\mathbf{M}^{\mathbf{n}+}\right]} \mathbf{R}\)
Answer:
It gives the relation between electrode potential, temperature and concentration of metal Ions.

When T = 298 K, F = 96500 C mol-¹
R = 8.314 J K^-1 & concentration of solid M is taken as unity.

Question 6.
Define Cell Constant ?
Answer:
Cell constant : The quantity l/a is called cell constant where ‘l’ is the distance of two electrodes and ‘a’ is the area of cross section of electrode. It is expressed in the units cm^-1.
\(Cell constant =\frac{\text { Distance between the electodes }}{\text { Area of Cross }-\text { Section }}\)

Question 7.
What are Enzymes ?
Answer:
Enzymes are complex nitrogenous organic compounds. They are usually protein molecules of high molecular mass. These are biochemical catalysts as numerous reactions that occur in the bodies of animals & plants to maintain the life process are catalysed by enzymes.

Question 8.
Why does PH₃ fumes in moist air ?
Answer:
PH₃ reacts with moist air to form impure phosphine, which bums in air and forms dense white smoke of metaphosphoric acid.

Question 9.
Why H₂O is liquid and H₂S is gas at room temperature ?
Answer:
H₂O contains hydrogen bonding but H₂S does not contain hydrogen bonding due to oxygen is more electro­negative than sulphur.

Question 10.
On what ground you will say that, Scandium (Z = 21) is a transition metal ?
Answer:
The last electron of Scandium enters in 7-orbital. It has vacant 7-orbital.
Sc (Z = 21)-Is² 2s² 2p⁶ 3s² 3p⁶ 4s² 3d¹, due to vacant 7-orbital & entering of last electron scandium is a transition element.

Question 11.
Which Ore is stronger reducing agent Cr²⁺ or Fe²⁺ ? Explain.
Answer:
Cr²⁺ is a stronger reducing agent than Fe²⁺.
This is quite evident form the E° values. E° Cr³⁺/Cr²⁺ = – 0.4/V and E° Fe³⁺/Fe²⁺ = 0.77 V.
Reason : T⁴ → 7³ occurs when Cr²⁺ changes to Cr³⁺ ion while T⁶-) T⁵ takes place when Fe²⁺ gets converted to Fe³⁺ ion. Now d⁴ → 7³ transition is easier as compared to T⁶ → T³ transition. Therefore, Cr²⁺ is a stronger reducing agent than Fe²⁺.

Question 12.
What do you mean by inner-transition elements ?
Answer:
The last electron added to each element is an f- electron. These two series of elements are hence called the inner transition elements (f-block Elements). The two rows of elements at the bottom of the Periodic Table, called the Lanthanoids, Ce (Z = 58) – Lu (Z = 71) & Actinoids, Th (Z = 90) – Lr (Z = 103).

Question 13.
What do you mean by co-ordination number ?
Answer:
Co-ordination number : The number of co­ordinate covalent & covalent bonds formed by the central metal of a complex compound is called co-ordination number of the central metal.
Example : [Ag (NH₃)₂]C1 C.N of Ag⁺ ion is 2.

Question 14.
Define Bidentate Ligand ?
Answer:
Bidentate or didentate Ligands: Ligands which has two donar atoms and has tendency to attach to the central ion through two donar atoms. Examples are

Question 15.
What Aldehyde on oxidation will give ?
Answer:
On oxidation aldehyde gives carboxylic acid

Question 16.
Name one water soluble and one fat soluble Vitamin.
Answer:
(a) Water soluble vitamins – (Vitamin B & C)
(b) Fat-soluble vitamins-(Vitamin A, D, E & K)

Question 17.
Define Molarity and Mole fraction.
Answer:
Molarity (M) : It is defined as the number of moles of solute dissolved in one litre (or one cubic decimetre) of the solution.
\(\text { Molarity }(\mathrm{M})=\frac{\text { Number of moles of solute } \times 1000}{\text { Volume of solution }(\mathrm{m} l)}\)
Molality (m) : It is defined as the number of moles of solute per kilogram of the solvent.
\(\text { Molality }(\mathrm{m})=\frac{\text { Number of mol. of solute } \times 1000}{\text { Mass of solvent }(\mathrm{g})}\)

Question 18.
Differentiate between Condensation and Polymerisation.
Answer:
Condensation : The condensation polymers are formed by repeated condensation reaction between two monomeric units having different bifunctional and trifunctional groups with the elimination of small molecules like water, alcohol, hydrogen chloride etc.
Example : Nylon 6, 6

Polymerisation: The process of formation of polymers from respective monomers is called polymerisation,

Long Answer Type Questions

There are 06 long answer type questions (each carrying 05 marks), out of which answer any there questions.
(5 x 3 = 15)

Question 19.
Find the order of reaction of the following :
(a) Rate = K[A]^1/2 [B]^3/2
(b) Rate = K[A]^3/2 [B]^-1
Answer:
(a) Rate = K[A]^1/2 [B]^3/2
Therefore order = \(\frac{1}{2}+\frac{3}{2}=\frac{4}{2}=2\)
This is called second order reaction.

(b) Rate = K [A]^3/2 [B]^-1
Therefore, order = \(\frac{3}{2}+(-1)=\frac{3}{2}-1=\frac{3-2}{2}=\frac{1}{2}\)
This is first order of reaction

Question 20.
Write in brief about how Sulphuric acid is manufactured by Contact process ?
Answer.
Sulphuric Acid (H₂SO₄) : It is called the king of chemicals and is one of the most widely used industrial chemicals. Manufacture : Sulphuric acid is manufactured by contact process which involves 3 steps

• Burning of sulphur or sulphide ores in air to produce SO₂
  
• Conversion of SO₂ into SO₃ by reaction with air in the presence of catalyst U₂O_s.
• Absorption of SO₃ in H₂SO₄ to give Oleum (H₂ S₂ O₇)

The key step is the catalytical oxidation of SO₂ with O₂ to give SO₃ in the presence of V₂O₅.

The SO₃ gas is absorbed in concentrate H₂SO₄ to produce Oleum (H₂S₂O₇) which on dilution with water gives H₂SO₄ of desired concentration.
SO₃ + H₂SO₄ → H₂ S₂ O₇ (Oleum)
H₂S₂O₇+ H₂O → 2H₂SO₄ The sulphuric acid obtained by the contact process is 96 – 98% pure.

Question 21.
What happens when.
(i) Concentrated H₂S0₄ is added ict Calcium fluoride and heated ?
(ii) SO₃ is passed through water.
Answer.
(i) When concentrated H₂SO₄ is added to calcium fluoride and heated it gives calcium sulphate (CaSO₄) and hydrogen fluoride (HF)
CaF₂ + H₂SO₄ → CaSO₄ + 2HF

(ii) When SO₃ is passed through water it gives sulphuric acid.
SO₃ + H₂O → H₂SO₄

Question 22.
Write the electronic configuration of the following :
(a) Cr³⁺ (b) Cu⁺ (c) CO²⁺ (d) Fe²⁺ (e)Mn²⁺ [Atomic number of Cr = 24, Cu = 29, Co = 27, Fe = Mn = 25]
Answer.
(a) Cr³⁺ – [Ar] 3d³ 4s°
(b) Cu⁺ – [Ar] 3d¹⁰ 4s°
(c) Co²⁺ – [Ar] 3d⁷ 4s°
(d) Fe²⁺ – [Ar] 3d⁶ 4s°
(e) Mn²⁺ – [Ar] 3d⁵ 4s°

Question 23.
How will you convert the following ?
(a) Methane to Ethane
(b) Ethanol to Ethyl acetate
(c) Metane to Chloroform
(d) Ethanal to Ethanoic acid
(e) Acetic acid to methane
Answer.
(a) Methane to Ethane

(b) Ethanol to Ethyl acetate

(c) Metane to Chloroform

(d) Ethanal to Ethanoic acid

(e) Acetic acid to methane

Question 24.
Write short notes on
(a) Inductive effect
(b) Resonance
Answer.
Inductive effect: It is the process of displacement of electrons along, the chain of carbon atoms due to the presence of a polar covalent bond at one end of the chain. This is a permanent effect.
(a) – I effect: When the atoms or group of atoms of the polar covalent bond is more electro-negative than C, it is said to show -I effect.

(b) + I effect: If the substituent attached to the end of the carbon chain is electron donating, the effect is called + I effect.

Resonance : Molecules having two or more structures due to distribution of electrons but same molecular formula is called resonance.
e.g.Benzene molecule has the following structure.

It is represented by a double headed arrow (<->) between the resonating structure.

Conditions :

• The nuclei in each of the canonical structures must be in the same relative position.
• The resonating structure differ only in the way of distribution of electrons.

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

Bihar Board 12th Physics Model Papers

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 indicates full marks.
3. While answering the questions, candidates should adhere to the words limit as far as practicable.
4. 15 Minutes of extra time has been allotted 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, your result will be treated as invalid.
7. In section-B, there are 18 Short answer type questions (each carrying 2 marks), out of which only 10 (ten) questions are to be answered Apart from this there are 06 Long Answer type questions each carrying 5 marks, out of which 3 questions are to be answered.
8. Use of any electronic device is prohibited.

Time : 3 Hours 15 Minute
Total Marks : 70

Objective Type Questions

In the following questions from no. 1 to 35, there is only one correct answer against each question. For each question, mark (darken) the correct answer on the OMR Sheet provided to you. (1 x 35 = 35)

Question 1.
The force acting between two electrons separated by distance r is proportional to
(a) r (b) r² (c) r^-2 (d) r^-1
Answer:
(c) r^-2

Question 2.
The dimensional formula for electric flux is
(a) [ML² T^-3 l^-1] (b) [ML³ T^-3 l^-1] (c) [ML² T⁺³ l^-1] (d) [ML³ T^-3 l]
Answer:
(b) [ML³ T^-3 l^-1]

Question 3.
The Torque experienced by an electric dipole of electric dipole moment \(\overrightarrow{\mathrm{P}}\) in a uniform field \(\overrightarrow{\mathrm{E}}\) is

Answer:
\(\text { (a) } \overrightarrow{\mathrm{P}} \times \overrightarrow{\mathrm{E}}\)

Question 4.
The work done in moving a unit positive charge through a distance x on an equipotential surface is
(a) xj (b) \(\frac{1}{x} j\) (c) zero (d) x²j
Answer:
(c) zero

Question 5.
The electric field intensity inside a charged hollow spherical conductor is
\((a) \epsilon_{0}
(b) E o \sigma
(c) zero
(d) \frac{\epsilon \circ}{\sigma}\)
Answer:
(c) zero

Question 6.
A conductor of capacity 20 mF is charged to 1000 V. The potential energy of the conductor will be
(a) 20 x 10⁴ J (b) 10⁴ J (c) 20 x 10³ J (d) 10³ J
Answer:
(d) 10³ J

Question 7.
The emf of a cell is measured by
(a) Voltmeter (b) Potentiometer (c) Ammeter (d) Voltameter
Answer:
(b) Potentiometer

Question 8.
Kirchoff’s current rule is related to Principle of conservation of
(a) Momentum (b) Energy (c) Charge (d) Angular momentum
Answer:
(c) Charge

Question 9.
Electron volt (eV) is a measure of
(a) Potential difference (b) Charge (c) Energy (d) Current
Answer:
(c) Energy

Question 10.
The Torque experienced by current carrying loop of magnetic moment \(\overrightarrow{\mathbf{M}}\) placed in a magnetic field \(\overrightarrow{\mathbf{B}}\) is

Answer:
(a)

Question 11.
Resistance of Galvanometer is G. Shunt used to allow 1 % of main current through the Galvanometer is
\((a) \frac{\mathrm{G}}{99}
(b) \frac{\mathrm{G}}{90}
(c) \frac{\mathrm{G}}{100}
(d) \frac{99 \mathrm{G}}{100}\)
Answer:
\(\text { (a) } \frac{\mathrm{G}}{99}\)

Question 12.
A Current is flowing in a circular coil. If the radius of the coil is doubled, then the value of magnetic field intensity at its centre will be
(a) same (b) half (c) double (d) four times
Answer:
(b) half

Question 13.
The working of a Dynamo is based on
(a) heating effect of current (b) electro-magnetic induction (c) induced magnetism (d) induced electricity
Answer:
(b) electro-magnetic induction

Question 14.
Unit of self inductance is
(a) Weber (Wb) (b) Ohm (Ω) (c) Henry (d) Gauss
Answer:
(c) Henry

Question 15.
If N₁ and N₂ are number of turns in primary and secondary coil of a transformer, then
(a) N₁ > N₂ (b) N₂ > N₁ (c) N₁ = N₂ (d) N₁ = 0
Answer:
(b) N₂ > N₁

Question 16.
Power factor of L – R circuit is

Answer:
(b)

Question 17.
The ratio of value of magnetic field at same distance from mid point of a small magnet at its axial and equatorial position is
(a) 2′: 1 \(\text { (b) } 1: \sqrt{2}\) \(\text { (c) } \sqrt{2}: 1\) (d) 1 : 2
Answer:
(a) 2 : 1

Question 18.
The angle of dip at magnetic pole of earth is
(a) 0° (b) 90° (c) 45° (d) 180°
Answer:
(b) 90°

Question 19.
The direction of transmission of the electromagnetic wave is
(a) parallel to \(\overrightarrow{\mathrm{E}}\) (b) parallel to \(\overrightarrow{\mathrm{B}}\) (c) parallel to \(\overrightarrow{\mathrm{B}} \times \overrightarrow{\mathrm{E}}\) (d) parallel to \(\overrightarrow{\mathrm{E}} \times \overrightarrow{\mathrm{B}}\)
Answer:
(d) parallel to \(\overrightarrow{\mathrm{E}} \times \overrightarrow{\mathrm{B}}\)

Question 20.
An air bubble inside water shines due to
(a) refraction (b) reflection (c) total internal reflection (d) diffraction
Answer:
(c) total internal reflection

Question 21.
The equivalent focal length of co-axial contact combination of two lenses of power -15D and +5D will be
(a) -10 cm (b) +10cm (c) -20 cm (d) +20 cm
Answer:
(a) -10 cm

Question 22.
The final image in astronomical telescope is
(a) Real and inverted (b) Virtual and erect (c) Virtual and inverted (d) Real and erect
Answer:
(b) Virtual and erect

Question 23.
Cylindrical lenses are used to correct defect of eye is called
(a) Myopia (b) Hypermetropia (c) Astigmatism (d) Presbyopia
Answer:
(c) Astigmatism

Question 24.
In Rayleigh scattering of light, the intensity of scattered light is proportional to the wave-length X in the form of
\((a) \frac{1}{\lambda^{2}}
(b) \frac{1}{\lambda}
(c) \frac{1}{\lambda^{3}}
(d) \frac{1}{\lambda^{4}}\)
Answer:
\((d) \frac{1}{\lambda^{4}}\)

Question 25.
The colour of a thin film is due to
(a) interference (b) diffråction (c) scattering (d) dispersion
Answer:
(a) interference

Question 26.
Ilrcwstcrs Jaw is
(a) μ = cos i_p
(c) μ = sin i_p
(b) μ = tan i_p
(d) μ = cot i_p
Answer:
(a) μ = cos i_p

Question 27.
The energy of a photon of wave-length λ is
(a) \(\frac{h c}{\lambda}\) (b) \(\frac{h \lambda}{C}\) (c) hcλ (d) \(\frac{\lambda}{\mathrm{hc}}\)
Answer:
(b) \(\frac{h \lambda}{C}\)

Question 28.
Which of the spectral line of hydrogen spectrum lies in visible region?
(a) 50 Hz (b) 25 Hz (c) 100 Hz (d) 200 Hz
Answer:
(a) 50 Hz

Question 29.
Which one of the following is a chargeless particle?
(a) α-partcle (b) β-partcle (c) proton (d) photon
Answer:
(a) α-partcle

Question 30.
The time during which the quantity of any radio¬active material becomes half of its original value is called
(a) Average age (b) Half age (c) Decay constant (d) Time period
Answer:
(b) Half age

Question 31.
The majority charge carrier in /i-type semi¬conductor is
(a) a-partcle (b) electron (c) proton (d) hole
Answer:
(b) electron

Question 32.
In full wave rectification, if input frequency is 50 Hz, then output frequency will be
(a) 50 Hz (b) 25 Hz (c) 100 Hz (d) 200 Hz .
Answer:
(a) 50 Hz

Question 33.
The Boolean – expression for NAND gate is
\(\text { (a) } \overline{A+B}=Y\) (b) A + B = Y \(\text { (c) } \overline{A.B}=Y\) (d) A.B = Y
Answer:
\(\text { (c) } \overline{A.B}=Y\)

Question 34.
Result of conversion of decimal number 15 into Binary will be
(a) (1100)₂ (b) (1001)₂ (c) (1111)₂ (d) (11001)₂
Answer:
(c) (1111)₂

Question 35.
Which frequency range is used in TV transmission?
(a) 30 Hz – 300 Hz (b) 30 KHz – 300 KHz (c) 30 MHz – 300 MHz (d) 30 GHZ – 300 GHz
Answer:
(c) 30 MHz – 300 MHz

Section – II

Non-Objective Type Questions
Short Answer Type Questions

Question nos. from 1 to 18 are short answer type questions. Each question of this category carries 2 marks. Answer any ten (10) questions.

Question 1.
What is Electrostatic Shielding? Give its practical application.
Answer:
Electrostatic Shielding:
The electrostatic shielding is the best way to protect some area in vacuum or in alir from the influence of externd electric field.

The technique of electrostatic shielding is applied basically in designing the cable of television.

Question 2.
Give two factors which affect capacitance of a capacitor.
Answer:
The capacity of a capacitor depends upon the following two factors.
(a) On the surface area of the plate of the capacitor.
(b) Distance between the two plates of the capacitor.

Question 3.
Define current density \(\overrightarrow{\mathrm{J}}\) and write expression for Current density in terms of Drift velocity.
Answer:
Current density The current per unit area of conductor is called Current density. It is denoted by J.
\(\mathrm{J}=\frac{1}{\mathrm{A}}\)

It is a Vector quantity.
S.I. unit Ampere/m²
We know that I = ηAeV_d; \(\mathrm{V}_{\mathrm{d}}=\frac{\mathrm{I}}{\eta \mathrm{Ae}} ; \quad \mathrm{V}_{\mathrm{d}}=\frac{1}{\mathrm{ne}}\)

Question 4.
A wire of 12 Ω resistance is stretched to double its length. Find out the new resistance of the wire.
Answer:
In this position volume remains constant

Question 5.
Explain Ampere’s circuital law.
Answer:
Ampere’s circuital law : It states that the line integral of magnetic field \(\overrightarrow{(B)}\) around any closed path or circuit is equal to μ₀ times of total current (I) threading the closed circuit.
\(\oint \overrightarrow{\mathrm{B}} \cdot \overrightarrow{\mathrm{d} 1}=\mu_{0} \mathrm{I}\)
where μ₀ = permeability of vacuum.

Question 6.
What is Shunt? Explain its uses.
Answer:
Shunt :
It is wire of low resistance, joined in parallel with circuit. The current capacity of pivoted type galvanometer is not very large. When large current passes through the cirucit then its coil may burn. To save them from damage, a low resistance wire is joined in parallel and it is called Shunt.

Uses of Shunt :

• In the protection of coil of Galvanometer
• In the conversion of Galvanometer into Ammeter.

Question 7.
Lenz’s law is the law of conservation of energy. Explain.
Answer:
Lenz’s Law : It states that the induced current produced in a circuit always flows in such a direction that it opposes the change or the cause that produces it.

According to Lenz’s law, the induced emf. opposes the change that produces it. It is this opposition against which we perform mechanical work in causing the change in magnetic flux. So, it is the mechanical energy which is converted into electrical energy. Thus, Lenz’s law is in accordance with the law of conservation of energy.

Question 8.
State two differences betwen the magnetic properties of soft iron and steel.
Answer:
Magnetic properties of steel and soft iron :
Steel have high value of retentivity and high value of coercivity. The area of hystersis loop is large for steel. So, it is used to make permanent magnet.

The soft iron have high retentivity and low coercivity. The area of hysteresis loop is small for soft iron, so it is used to make electro-magnet.

Question 9.
Explain Wattless current.
Answer:
Three properties of electro-magenetic waves :

• The electro-magnetic waves are produced by accelerated charges.
• Electro-magnetic waves do not require any material medium for their propagation.
• The electro-magnetic waves obey the principle of Superposition.

Question 10.
State two main characteristics of electro-magnetic waves.
Answer:

• Electromagnetic waves are emitted by electrically charged particles undergoing acceleration.
• Electromagnetic waves of different frequency are called by different names. Since they have different source and effects no matter.

Question 11.
Two thin convex lenses of power 4D and 6D are placed co-axially at a distance of 20 cm apart. Find the focal length and power of the combination of lenses.
Answer:

Question 12.
Write necessary conditions for Interference?
Answer:
Necessary conditions for Interference of light.

• The two sources should emit the light waves continuously.
• The light waves should be of same wave-length.
• The light waves emitted should preferably be of the same amplitude.
• The two light sources should be very narrow.
• The two sources of light must be very close to each other.

Question13.
Write Truth table and Boolean algebraic expression of OR gate and AND gate.
Answer:
Boolean expressiosn of OR gate A + B = Y
Truth table for OR gate

Boolean expression for AND gate A • B = Y Truth table for AND gate

Question 14.
Write the de-Broglie wave-length of an electron of Kinetic energy E.
Answer:
de-Broglie wave length of an electron :
Let m is mass of electron, e is the charge and it is accelerated with potential v.
Energy of electron E = ev …………………….. (i)

K.E. of electron

where h = Plank” constants.

Question 15.
What is Amplitude Modulation? Explain.
Answer:
Amplitude Modulation When the modulating wave is superimposed on a high-frequency carrier wave in a manner that the frequency of the modulated wave is same as that of the carrier wave but its amplitude is modified in accordance with that of the modulating wave the process is called amplitude modulation.

Question 16.
What will be the value of flux of electric field on a closed surface ABC placed near charges +q₁ +q₂ and -q₃?

Answer:
Total charge inside the closed surface = + q₁ – q₃
total electric flux charge q₂ is outside Φ = \(\frac{q_{1}-q_{3}}{\epsilon_{0}}\) the closed surface.

Question 17.
In going from water to glass will speed of light increase or decrease? Explain.
Answer:
When the light ray passes from water to glass its speed decreases because glass is denser medium in comparision to water. When light ray passes from water to glass its wave length decreases. So, speed of light also decreases.

Question 18.
A particle of mass m and charge q is projected with velocity \(\overrightarrow{\mathrm{v}}\) perpendicular to a uniform magnetic field \(\overrightarrow{\mathrm{B}}\). The particle is set in a circular motion. What will be the radius of this circular path?
Answer:
When the charge particle moves perpendicular to magnetic field then its experiences the force F = qBVsinθ
Here θ = 90°; F = qBV ……………………..(i)
when it moves on aircular path then centripetal force
\(F=\frac{m V^{2}}{r}\) …………… (ii)

From equation (i) and (ii)
\(\frac{m v^{2}}{r}=q B V ; m v=q B r ; \quad r=\frac{m v}{q B}\)
This is the expression for radius of circular path.

Long Answer Type Questions

Question nos. from 19 to 24 are long answer type questions. Each question of this category carries 5 marks. Answer any three questions. (3 x 5 = 15)

Question 19.
State Gauss’s law. Applying this law obtain electric field due to an infinitely long thin uniform charged straight wire.
Answer:
Gauss’s Theorem :
It states that the total electric flux through a closed surface enclosing a charge is equal \(\frac{1}{\epsilon_{0}}\) to times the magnitude of charge enclosed.
\(\phi=\frac{q}{\epsilon_{0}}\)

where ε₀ = permitivity of vacuum or air Expression for electric intensity due to infinitely long charged st. wire.

Consider a thin infinitely long st. line charge having a linear charge density λ placed along yy’.

To find electric field due to line charged at point P distance r from it, draw a cylindrical surface of radius r and length l about the line charge as its axis. The cylindrical surface may be treated as the Gaussian surface for the line charge.

If E is the magnitude of electric field at point P, then electric flux through the Gausssian surface is given by
Φ = E x Area of curved surface of cylinder
Φ = E x 2πrl …………………… (i)

According to Gauss’s theorem

Question 20.
Establish the formula for a lens
\(\frac{1}{f}=(\mu-1)\left(\frac{1}{\mathbf{R}_{1}}-\frac{1}{\mathbf{R}_{2}}\right)\)
Answer:
Lens Maker’s Formula :
Suppose L is a thin lens. The refractive index of the material of lens is n₂ and it is placed in a medium of refractive index nx. The optical centre or lens is C and X. X is principal axis. The radii of curvature of the surfaces of the lens are Rj and R₂ and their poles are P₁ and P₂. The thickness of lens is t, which is very small. O is a point object on the principal axis of the lens. The distance of O from pole P₁ is u. The first refracting surface forms the image of O at V at a distance v’ from P₁. From the refraction formula at spherical

The image I acts as a virtual object for second surface and after refraction at second surface, the final image is formed at I. The distance of I from pole P₂ of second surface is v. The distance of virtual object (E) from pole P₂ is (v -1).

For refraction at second surface, the ray is going from second medium (refractive index n₁) to first medium (refractive index (n₂), therefore from refraction formula at spherical surface.
\(\frac{n_{1}}{v}-\frac{n_{2}}{\left(v^{\prime}-1\right)}=\frac{n_{1}-n_{2}}{\mathrm{R}_{2}}\) …………………….. (ii)

For a thin lens t is negligible as compared to v’, therefore from (ii)

where \(\mathrm{l} n_{2}=\frac{n_{2}}{n_{1}}\) is refractive index of second medium (i.e., medium of lens) with respect to first medium.

If the object O is at infinity, the image will be formed at second focus i.e.,

if u = ∞, v = f₂ = f , Therefore from equation (iv)

This is the formula of refraction for a thin lens. This is also called Len’s maker’s formula.

Question 21.
Define Interference of light. Derive an expression for Fringe-Width in Young’s double slits experiment.
Answer:
Interference of Light :
The phenomenon of non-uniform distribution of energy in the medium due to superposition of two light waves is called interference of light.

Expression for Fringe Width :
Consider that two coherent source of light S₁ and S₂ are placed at a distance apart and screen is placed at a distance D from the plane of two source. Let P be a point on the screen at distance y from the centre of screen. If .v is the path difference between light waves reaching point P from the source S₁ and S₂ then x = S₂P – S₁P

Fringe Width :
The spacing between any two consecutive fright fringes is equal to the width of dark frine therefore width of dark fringe.

Thus, in Young’s double slit experiment, the bright and dark fringes are of same width. It is denoted by β.
\(\beta=\frac{D \lambda}{d}\)

Question 22.
State KirchofTs laws. Applying these laws obtain the condition for balanced Wheatstone Bridge.
Answer:
Kirchoff’s law : First law :
In the network of conductor the algebraic sum of current meeting at a point is always zero. It also causes junction rule.

Second law :
It states that in any closed part of an electrical circuit, the algebraic sum of the emf is equal to the algebraic sum of the products of the resistance and current flowing through them. It is also called loop rule. This law is based on the law of conservation of energy.

Wheatstone bridge :
It is one of the accurate arrangements for measuring an unknown resistance. It is based on the principle of Kirchoff s law.

Four resistances P, Q, R and S are connected to form a quadrilateral of galvanometer and a tapping key k₁ (called galvanometer) are connected between points B and D as shown in the figure.

Applying Kirchoff s second law, for closed part ABDA in the circuit I₁ P + I_g g – (I – I₁) S = 0
where g is the resistance of galvanometer In the balanced state I_g = 0

Applying Kirchoff s law in closed part BDCB

From equation (i) and (ii)
\(\frac{P}{S}=\frac{Q}{R}\left[S=\frac{P}{Q} \cdot R\right]\)

Thus unknown resistance can be calculated.

Question 23.
State Biot-Savart law. Applying this law obtain expression of magnetic Held at a point on the axis of a circular coil carrying electric current.
Answer:
Biot-Savart law :
This law establish the relation between magnetic field and current.

Let xy is aonductor in which current I is flowing from v to y. P is the point at the distance r and at this point magnetic field \(\overrightarrow{d B}\) depends upon following factor :

where μ₀ is permeability of vacuum or air.

Magnetic field at the axis of a circular loop :
Consider a circular loop of radius R carrying current I, with its plane perpendicular to the plane of paper. Let P be a point of observation on the axis of this circular loop at a distance x from its centre O. Consider a small element of length dl of the coil at point A. The magnitude of the magnetic induction \(\overrightarrow{\mathrm{dB}}\) at point P due to this element is given by

The direction of \(\overrightarrow{\mathrm{dB}}\) is perpendicular to the plane containing \(\overrightarrow{\mathrm{dl}}\) and \(\overrightarrow{\mathrm{r}}\) is given by Right hand screw rule. As the angle between I \(\overrightarrow{\mathrm{dl}}\) and \(\overrightarrow{\mathrm{r}}\) is 90°, the magnitude of the magnetic induction \(\overrightarrow{\mathrm{dB}}\) is given by,
\(\overrightarrow{d B}=\frac{\mu_{0} I}{4 \pi} \frac{d l \sin 90^{\circ}}{r^{2}}=\frac{\mu_{0} I d l}{4 \pi r^{2}}\)

If we consider the magnetic induction produced by the whole of the circular coil, then by symmetry the components of magnetic induction perpendicular to the axis will be cancelled out, while those parallel to the axis will be added up. Thus the resultant magnetic induction \(\overrightarrow{\mathrm{B}}\) at axial point P is along the axis and may be evaluated as follows :

The component of \(\overrightarrow{\mathrm{dB}}\) along the axis,

Therefore the magnitude of resultant magnetic induction at axial point P due to the whole circular coil is given by

Question 24.
What is Zener diode? Explain its use in a Voltage regulator.
Answer:
Zener diode :
The specially designed Junction diode, which can operate in the reverse breakdown voltage region continuously without being damaged are called Zener diode.

Symbol of Zener diode

Zener diode as a voltage regulator :
The use of Zener diode is based on the fact that in reverse break down region, a very small change in voltage across the Zener diode produces a very large change in the current through the circuit.

If voltage is increased beyond Zener voltage, the resistance of the Zener diode drops considerably. Consider that the Zener diode and a resistance R, called dropping resistor are connected to fluctuating d.c. supply, such that the Zener diode is reverse biased. Whenever voltage across the diode tends to increase, the current through the diode rises out of proportion and causes a sufficient increase in voltage drop across the dropping resistor. As a result, the output voltage lowers back to the normal value. Similarly, when the voltage across the diode tends to decrease, the current through the diode goes down out of proportion, so that the voltage drop across the dropping resistor is much less and now the output voltage is raised to normal.

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

Bihar Board 12th Intermediate Hindi Model Question Papers 2020-2021 Pdf with Answers

Bihar Board 12th Model Papers

Bihar Board 12th Hindi 100 Marks Model Question Papers

• Bihar Board 12th Hindi 100 Marks Model Question Paper 1 (Science, Commerce)
• Bihar Board 12th Hindi 100 Marks Model Question Paper 2 (Science, Commerce)
• Bihar Board 12th Hindi 100 Marks Model Question Paper 3 (Arts)

Bihar Board 12th Hindi 50 Marks Model Question Papers

• Bihar Board 12th Hindi 50 Marks Model Question Paper 1 (Science, Commerce)
• Bihar Board 12th Hindi 50 Marks Model Question Paper 2 (Science, Commerce)
• Bihar Board 12th Hindi 50 Marks Model Question Paper 3 (Arts)

Bihar Board 12th Entrepreneurship Model Papers

Bihar Board 12th Entrepreneurship Model Question Paper 5 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.
Management is an art.
(a) Self-working
(b) Working with others
(c) (a) and (b) both
(d) None of these
Answer:
(b) Working with others

Question 2
Project appraisal is an
(a) Export Analysis
(b) Expert Analysis
(c) Profitability Analysis
(d) None of these
Answer:
(b) Expert Analysis

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

Question 6.
Project identification deals with
(a) Variable product idea
(b) logical opportunity
(c) effective demand
(d) None of these
Answer:
(b) logical opportunity

Question 7.
Responsibility of an entrepreneur is
(a) Towards society
(b) Towards government
(c) Towards environment
(d) All of them
Answer:
(d) All of them

Question 8.
Duty of an entrepreneur is
(a) Levying profit
(b) Tax evasion
(c) environmental pollution
(d) None of these
Answer:
(a) Levying profit

Question 9.
Integration means
(a) Expanding internally
(b) Expanding externally
(c) (a) and (b) both
(d) None of these
Answer:
(c) (a) and (b) both

Question 10.
Telephone expenses are
(a) Fixed
(b) Variable
(c) Semi variable
(d) None of these
Answer:
(c) Semi variable

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

Question 12.
Naked debentures are
(a) Fully secured
(b) partly secured
(c) Unsecured
(d) None of these
Answer:
(c) Unsecured

Question 13.
IDBI was established in the year.
(a) 1944
(b) 1954
(c) 1964
(d) 1974
Answer:
(c) 1964

Question 14.
Dividend is
(a) Net profit
(b) Appropriation of profit
(c) reserve fund
(d) Part of undistributed profit
Answer:
(d) Part of undistributed profit

Question 15.
Public deposits are the source of
(a) Short term finance
(b) Long term finance
(c) Medium-term finance
(d) Social investment
Answer:
(b) Long term finance

Question 16.
Marketing expenditure is a burden.
(a) On industry
(b) On businessman
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 17.
Labelling is
(a) Compulsory
(b) Necessary
(c) Voluntary
(d) Wastage of money
Answer:
(b) Necessary

Question 18.
The maximum wide scope is
(a) Brand
(b) Labelling
(c) Packaging
(d) Trademark
Answer:
(a) Brand

Question 19.
Management is
(a) Art
(b) Science
(c) Art & Science
(d) none of these
Answer:
(c) Art & Science

Question 20.
Venture capital through originated first in
(a) India
(b) England
(c) America
(d) Japan
Answer:
(d) Japan

Question 21.
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 22.
Ideal current Ratio is
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 4 : 1
Answer:
(a) 2 : 1

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

Question 24.
Closing stock is
(a) Source of fund
(b) Application of fund
(c) Not any flow of fund
(d) None of these
Answer:
(a) Source of fund

Question 25.
Long term loan bears.
(a) Fixed-rate of interest
(b) Flexible rate of interest
(c) Zero rates of interest
(d) None of these
Answer:
(a) Fixed-rate of interest

Question 26.
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 27.
Subsidy is
(a) Discount
(b) Concession
(c) Repayment
(d) None of these
Answer:
(b) Concession

Question 28.
Of all management activities planning is the
(a) beginning
(b) End
(c) Beginning & end both
(d) None of these
Answer:
(a) beginning

Question 29.
The project report is a summary of:
(a) Facts
(b) Information
(c) Analysis
(d) All of these
Answer:
(d) All of these

Question 30.
A successful entrepreneur must possess the quality of:
(a) Leadership
(b) Control
(c) Innovation
(d) All of these
Answer:
(d) All of these

Question 31.
Debit to Receiver and giver to giver law is on :
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) Business A/c
Answer:
(a) Personal A/c

Question 32.
Public deposit resources are:
(a) Short-term loan
(b) Long-term Loan
(c) Mid-term loan
(d) Social Investment
Answer:
(b) Long-term Loan

Question 33.
Brand indicates:
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Question 34.
It is not included in fixed cost
(a) cost of goods
(b) cost of labour
(c) cost of power
(d) cost of factory
Answer:
(c) cost of power

Question 35.
Dividend is:
(a) Net profit
(b) Appropriation of profit
(c) Reserve fund
(d) Undistributed profit share
Answer:
(d) Undistributed profit share

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.
What do you mean by “Motivation”?
Answer:
The concept of motivation is mainly psychological. It relates to those internal forces of an individual that impel him to act or not to act in certain ways. As it is well known that human beings have endless needs. They attach priorities to their needs. Managers diagnose their urgent needs and assure to fulfil them if they conform their behaviour to the requirements of the organisation. According to Terry and Franklin,” Motivation is the need or drive within an individual that drives him or her toward the goal.

Question 2.
What is an Organisation?
Answer:
An organisation is a social entity that has a collective goal and is linked to an external environment. The word is derived from the Greek word Nargaroth,’ itself derived from the better-known word ergon which means an organs-a compartment for a particular task.

A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organisations have a management structure that determines relationships between the different activities, and the member and subdivides and assign roles, responsibilities and authority to carry out different tasks. The organisation is open systems they affect and are affected by their environment. Forms of business organisation are as follows:

• Sole trader or sole proprietorship
• Joint Hindu Family Business
• Partnership
• Co-operative Organisation
• Joint Stock Company.

Question 3.
What are the functions of the stock exchange market?
Answer:
The efficient functioning of a stock exchange creates a conducive climate for an active and growing primary market for new issues. An active and healthy secondary market in existing securities leads to positive environment among investors. The following are some of the important functions of a stock exchange.

(i) Providing liability and marketability to existing securities: The basic function of a stock exchange is the creation of a continuous market where securities are bought and sold. Its gives investors the change to disinvest and easy marketability to already existing securities in the market.

(ii) Pricing of securities: Share prices on a stock exchange are determined by the forces of demand and supply. A stock exchange is a mechanism of constant valuation through which the prices of securities are determined.

(iii) Safety of transaction: The membership of a stock exchange is well-regulated and its dealings are well defined according to the existing legal framework.

Question 4.
What are Enterprises?
Answer:
The meaning of any enterprises to that enterprise in which there is a lot of risks, uncertain losses exist. The origin of enterprises in it and fight to get more profit and power. When a commercial institution and industrial organisation set up a business then it is called an enterprise. An enterprise is set up for more profit and earning his success in the market.

Question 5.
Why it is essential to “Project work”?
Answer:
A project is an organised unit dedicated to the pre-determined objectives. A project can be completed within a proposed time frame, within budget and in accordance with specifications of planning. A project is any business opportunity which can be exploited for profit.
Project work is essential is written on some points which are as follows:

• During the course of the project work, the students feel like doing something exceptional.
• Any project work adds to the practical knowledge of the students.
• Whatever the theoretical knowledge attained by the students from the texts, the possible doubts are dispelled by means of the project work.

Question 6.
What are the different types of accounting ratios?
Answer:
According to ratios are classified into four categories as follows:

1. Liquidity ratio
2. Solvency ratio
3. Activity ratio
4. Profitability ratio.

1. Liquidity ratio: Liquidity means the ability of the undertaking to pay its short term debts in time financial institutions and short-term creditors are interested in such types of analysis. Management can also make use of these ratios to find out whether the working capital is being used efficiently or not.
2. Solvency ratio: Solvency ratios indicate the firm’s ability to meet long-term liabilities. Here, the term ‘solvency ratios’ has been used to mean the long-term financial position of the business.
3. Activity Ratios: These ratios are known as velocity ratios, activity ratios, performance ratios, efficiency ratios or turn over ratios. The funds of the owner and creditors are used to finance various assets of the firm.
4. Profitability ratios or Income ratios: The operating efficiency of a firm and its ability to ensure an adequate return to its shareholders are reflected in the profits earned by it. Profitability ratios can be computed either on the basis of sales or on the basis of the investment. Profitability ratios are calculated in relation to sales.

Question 7.
Discuss the three advantages of management.
Answer:
The three advantages of management are as follows:
(i) Management helps in achieving group goals: Management is required not for itself but for achieving the goals of the organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of the organisation.

(ii) Management increases efficiency: The aim of management is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.

(iii) Management creates a dynamic organisation: All organisations have to function in an environment which is constantly changing. It is generally seen that individuals in an organisation resist change as it often means moving from a familiar, secure environment into a newer and more challenging one.

Question 8.
What is the marketing mix?
Answer:
The marketing mix is a set of marketing tools that the firm uses to pursue its marketing objectives in a target market. The variables or elements of marketing mix have been classified into four categories, popularly known as four Ps of marketing viz. product, price, place and product. These elements are combined to create an offer. A firm can reshape a market offering by bringing in a change in any of the variable under its own control say introducing a change in the price or promotion offer or product features or channel used to make the product available to buyers.

Question 9.
Who is an Entrepreneur?
Answer:
The term ‘entrepreneur’ was first introduced in economics by the early 18th-century French economist Richard Cantillon. The entrepreneur as the agent who buys means production at certain prices in order to sell the produce at uncertain prices in the future.” Since then a perusal of the usage of the term in economics shows, that entrepreneurship implies risk uncertainty bearing; coordination of productive resources; introduction of innovations; and the provision of capital Entrepreneurship is regarded as one of the four major factors of production, the other three being land, labour and capital. Entrepreneur set up his business. We can understand the three words, entrepreneur, entrepreneurship and enterprise by SVO analogy.

Question 10.
Explain three functions of marketing.
Answer:
Marketing is concerned with the exchange of goods and services from producers to consumers or users in such a way that maximises the satisfaction of customer’s needs. The three functions of marketing are as follows:

(i) Gathering and Analysing Market Information: One of the important functions of a marketer is to gather and analyse market information. This is necessary to identify the need of the customers and take various decisions for the successful marketing of the products and services.

(ii) Marketing planning: Another important activity or area of work of a marketer is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
For example, A marketer of colour TVs, having 10 per cent of the current market share in the country aims at enhancing his market share to 20 per cent, in the next three years.

(iii) Product Designing and Development: The design of the product contribute to making the product attractive to the target customers. A good design can improve performance of a product and also give it a competitive advantage in the market for example, when we plan to buy any product say a motorbike we not only see its features like cost, mileage, etc. also the design aspects like its shape, style etc.

Question 11.
Explain three objectives of advertising.
Answer:
Advertising is one of the most frequently used media of promotion of good and services, it attracts a lot of criticism. The three objectives of advertising are as follows:

(i) Adds to cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of the product, which is ultimately passed on to the buyers in the form of high prices. Advertisement of a product cost lot of money but it helps to increase the demand for the product as a large number of potential buyers.

(ii) Underlines social values: Advertising is undermined social values and promotes materialism. It breeds discontent among people as they come to know about new products and feel dissatisfied with their present state of affairs.

(iii) Encourage the sale of inferior products: Advertising does not distinguish between superior and inferior products and persuade people to purchase even the inferior product. Advertising sell products of a given quality and the buyers will buy it suits their requirement.

Question 12.
How many types of opportunity?
Answer:
There are two categories of opportunities are as follows:
(i) Existing opportunities in the environment: There is some kind of opportunities which are already existing e.g., paper, cloth and footwear industry where some innovative devices are required to bring about some modification, novelty and distinction from the existing quality and look.

(ii) Created opportunities: Such opportunities are not pre-existing rather created in view of the aspirations of the consumers, changing fashion trends, technical innovations and according to the prevailing conditions, assume new forms.

Question 13.
What are the main types of the environment?
Answer:
The main types of environment are followed:

• Internal environment: Internal environment involves those factors which remain under the control of the entrepreneur i.e. land, production, capital, labour, building or venue and infrastructure, etc.
• External environment: These are the factors on which the entrepreneur has no control i.e, economical, social, political, technical, competitive, clientele, shortage and market, etc. These factors do influence the performance and the decision of the entrepreneur.

Question 14.
Explain four functions of Packaging?
Answer:
Some of the important functions are as follows:

• Product identification: Packaging greatly helps in the identification of the products, for example, Colgate in red colour, or ponds, the cream jar can be easily identified by its package.
• Product protection: Packaging protects the contents of a product from spoilage, breakage, leakage, pilferage, damage, climate effect etc. The kind of protection is required during storing, distribution and transportation of the product.
• Facilitating use of the product: The size and shape of the package should be such that it should be convenient to open handle and use for the consumers. Cosmetics, medicines and tubes of toothpastes are good examples of this.
• Product promotion: Packaging is also used for promotion purposes. A starting colour scheme, photograph or typeface may be used to attract attention of the people at the point of purchase.

Question 15.
What is the break-even point?
Answer:
Break-even pointBreak-even analysis is related to the study of cost and return of and investment in relation to the sales of a business unit. That point or level of sales at which the business makes no profit and no loss is termed as the break-even point.

Question 16.
What are the responsibilities of each entrepreneur in the environment?
Answer:
Responsibilities of each entrepreneur of the environment are any kind of tampering with the environment in terms of filing, pollution, contamination, etc. is a serious offence which is causing great harm to the present generation. In addition, it is raising a question mark on the fate of the coming generation. No doubt, the industrial units do cause pollution, more or less, to the environment, and it is the prime responsibility of an entrepreneur not to harm the environment in any way. The industrial waste, raw, residual, etc., must not be thrown into the water, its right use should be encouraged. Personal profit should not be the sole consideration here to the extent that the environment is polluted. The government is very serious about it and does not permit, even then an entrepreneur ought to be considerate at his own in this regard.

Question 17.
Explain the importance of advertisement in business.
Answer:
The importance of advertisement in business are as follows:

• To Introduce new product and services: It is through advertising that the people are to be informed about any newly launched product and include them to buy it.
• To increase sales: Another aim of advertising is to promote sales. A trader always strives to increase sales and with this purpose in mind, he does advertising.
• To create and develop new markets: One objective of advertising is to explore and develop new vistas or markets which is easier to do so by means of advertising.
• To sustain the existing demand: The objective here is not only to increase demand rather exploit the current or existing demand which requires repeated advertising.
• To educate the consumer: Advertising always directs the prospective buyers to the seller by inspiring and educating them about the product and facilities the efforts of the producers this is what the advertising does.

Question 18.
Discuss the nature of management.
Answer:
Management is both an art and science as well it is important to look at these two aspects distinctly before arriving and confirming the veracity of this statement. Management is an art: Management is regarded as ‘art’ which means in order to do something and to accomplish some objective exercise of ability and knowledge becomes imperative. Art is a technique, that provides a practical shape to theories or principles. Art is a means to get the desired results. The success of an artist is to be measured on the basis of his performance. As such, it is not inappropriate to regard the management are an ‘art’.

Management is a science: A systematic knowledge which is based on some principles is known as science or science is that branch of knowledge that helps in laying down of certain principles followed by some presumptions and experimentation.

Conclusion: Management is an art because it exercises both knowledge and ability in order to accomplish the predetermined objectives, thus as a science, it aims to attain knowledge by means of study and experimentation.

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.
Explain the characteristics of management.
Answer:
The basic characteristics of management are as follows:

• Management is a goal-oriented process: An organisation has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated. Different organisations have different goals.
• Management is all-pervasive: The activities involved in managing an enterprise are common to all organisations whether economic social or political. In other countries, they do it may be quite different. This difference is due to the differences in culture, tradition and history.
• Management is multidimensional: Management is a complex activity that has three main dimensions. These are:
  • Management of work
  • Management of people
  • Management of operations.
• Management is a continuous process: The process of management is a series of continuous, composite, but separate functions (planning, organising, directing, staffing and controlling). These functions are simultaneously performed by all the time.
• Management is a group activity: An organisation is a collection of diverse individuals with different needs. Every member of the group has a different purpose for joining the organisation but as members of the organisation, they work towards fulfilling the common organisational goal.
• Management is a dynamic function: Management is a dynamic function and has to adapt itself to the changing environment. An organisation interacts with its external environment which consists of various social economic and political factors.
• Management is an intangible force: Management is an intangible force that cannot be seen but its presence can be felt in the way the organisation functions. The effect of management is noticeable in an organisation where targets are met according to plans employees are happy and satisfied.

Question 20.
What are the steps taking by management in the planning process?
Answer:
Planning as well as knowledge is deciding in advance what to do and how to do. The steps are taking by management in the planning process are as follows:
(i) Setting Objectives: The first and foremost step is setting objectives. Every organisation must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation.

(ii) Developing premises: Planning is concerned with the future which is uncertain and every planner is using conjecture about what happens in future. Therefore, the manager is required to make certain assumptions about the future. These assumptions are premises.

(iii) Identifying alternative courses of action: Once objectives are set, assumptions are made. Then the next step would be to get upon them. There may be many ways to act and active objectives.

(iv) Evaluating alternative courses: The next step is to weigh the pros and cons at each alternative. Each course will have many variables which have to be weighed against each other. The positive and negative aspects of each proposal need to be evaluated.

(v) Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with least negative consequences.

(vi) Implementing the plan: This is the step where other managerial functions also come into the picture. The step is concerned with putting the plan into action i.e. doing what is required.

(vii) Follow-up action: Plans are being implemented and activities are performed according to schedule is also part of the planning process.

Question 21.
What are the differences between the capital market and money market?
Answer:
Capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested. It consists of a series of channels through which savings of the community are made available for industrial and commercial enterprises and for the public in general, It directs these savings into this most productive use leading to growth and development of the economy. The capital market consists of development banks, commercial banks and stock exchanges. It is essential that financial institutions are sufficiently developed and that market operations are free, fair, competitive and transparent.

The money market is a market for short term funds which deals in monetary assets whose period of maturity is up to one year. It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued
and actively traded every day. It enables the raising of short-term funds for meeting the temporary shortages of cash and obligations and the temporary deployment of excess funds for earning returns.

Both the money market and the capital market are the centres which arrange for the transfer of funds from the suppliers of funds to the users of funds. They differ, however in regard to the maturity periods of the financial assets created and debt with for affecting the transfer of funds. Money market arranges for short term and the capital market provides for medium to long term funds. The time length of short-term funds is less than and up to one year.

Question 22.
What are the elements of marketing mixture?
Answer:
The elements of the marketing mix are classified into four categories, popularly known as four Ps of marketing. These are:

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

1. Product: Product means goods or services or ‘anything of value, which is offered to the market for exchange, for example, Hindustan lever, company offers a number of consumer products like toiletries (close-up, toothpaste, lifebuoy, soap etc.) The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.

2. Price: Price is the number of money customers has to pay to obtain the product. Level of price affects the level of their demand.

3. Place: Place or physical distribution include activities that make firms products available to the target customers. Arises 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.

4. 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 a substantial amount of money on the promotion of their goods through using advertising, personal setting and sales promotion techniques.

Question 23.
Explain the various elements of a company which affected the distribution of company’s dividend?
Answer:
Elements affecting the distribution of a dividend of a company.
Dividend and companies Act:

• For any financial year, the company can declare or pay dividend out of those profits of the company for that year which is arrived at after providing depreciation in accordance with the provisions of schedule ” u/s 123 (1)(a)
• If there are undistributed profits of the previous year or years, the company can declare or pay dividends out of such profits which are left over after providing depreciation in accordance with section 123(1)a.
• The company can declare or pay dividend out of money provided by central govt, or state govt.
• The company may, before the declaration of dividend in a financial year may voluntarily transfer some profits to reserve.
• The company can declare or pay dividend out of both types of profit as mentioned in (a) & (b).
• The dividend shall be payable only in cash. However, profits or reserves can be capitalized for the issue of fully paid bonus shares or for paying up any amount for the time being unpaid on any shares held by the members of the company.

Question 24.
What is the importance of packaging in the marketing object?
Answer:
Marketing has been referred to as the performance of business activities that direct the flow of goods and services from producers and consumers. In this process, producers should satisfied customers then every step is very important when producers launch a product in the market. So, the packaging is also a very important stage in preparing product.

Packaging refers to designing the package for the products. After packaging labelling is also very important. Packaging and labelling have become so important in modem day marketing that these are considered as the pillars of marketing. The packaging is important not only for the protection of the products but also serves as a promotional tool. Sometimes the quality of the product is assessed by the buyers from the packaging.

We have seen that in the success of many of the consumer brands in recent times such as Kurkure, lays chips potato waters, clinic plus shampoo, and Colgate, toothpaste etc. Packaging has. played an important rate. Packaging and labelling is the first impression of any product customers attracted by packaging and labelling. Each and every product shoulds attractive look to high demand in the market.

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.