CBSE Class 12 Business Studies is scheduled to be held on 09 March 2018. In this article, we have provided a practice paper for this exam. The format of this paper is as per latest Class 12 Business Studies Sample Paper issued by CBSE for 2018 board exams. Questions given below are important questions and are expected to be asked in Class 12 Business Studies board exam 2018. The time duration to finish this paper is 3 hours.
Complete practice paper for CBSE Class 12 Business Studies board exam 2018 is given below:
(i) Answers to questions carrying 1 mark may be from one word to one sentence.
(ii) Answers to questions carrying 3 marks may be from 50 ‒ 75 words.
(iii) Answers to questions carrying 4 ‒ 5 marks may be about 150 words.
(iv) Answers to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a question together.
Question 1: Explain the term Planning premises? (1)
Question 2: Explain the ‘Performance Appraisal’? (1)
Question 3: What do you understand by 'efficiency' in management? (1)
Question 4: SEBI recently called for information and issued a show cause notice to NSE and its 14 officials seeking explanation on the Preferential Access allegations at the Exchange’s Co-location facility. State the function that SEBI performed by doing so. (1)
Question 5: How 'cost of debt' affects the choice of capital structure of a company? (1)
Question 6: Explain how 'cost of equity' affects the choice of capital structure of a company. (1)
Define 'co-ordination'. (1)
Question 8: State any 2 responsibilities of a consumer. (1)
Question 9: State any three functions performed by non-governmental organisations for consumer protection. (3)
Question 10: What is meant by a ‘long-term investment decision’? State any three factors which affect the long term investment decisions. (3)
Question 11: State any three characteristics of principles of management (3)
Question 12: The workers of 'Swastik Ltd.' are unable to work on new computerised machines imported by the company to fulfil the increased demand. Therefore the workers are seeking extra guidance from the supervisor and the supervisor is overburdened with the frequent calls of workers.
Suggest how the supervisor, by increasing the skills and knowledge of workers, can make them handle their work independently.
Also state any three benefits that the workers will derive by the decision of the supervisor. (3)
Question 13: Explain briefly any three organisational barriers to communication. (3)
Question 14: Explain briefly 'Casual Callers' and 'Labour Contractors' as external sources of recruitment.(4)
Question 15: The employees of Manik Ltd, a software company, have formed a dramatic group for their recreation. Name the type of organisation so formed arid state its three features. (4)
Question 16: Explain briefly 'Casual Callers' and 'Labour Contractors' as external sources of recruitment. (4)
Question 17: Give the meaning of 'Policy' and 'Budget' as types of plans (4)
Question 18: Give the meaning of ‘Strategy’ and ‘Rule’ as types of plans. (4)
Question 19: State any four factors which help in determining the working capital requirements of a company. (4)
Question 20: Despite internal sources of recruitment being economical why do companies not always use this source? State any five reasons. (5)
Question 21: Describe briefly the steps in the process of controlling. (5)
Question 22: Namita and Aslam completed their MBA and started worki ng i n a multi-national company at the same level. Both are working hard and are happy with their employer. Aslam had the habit of backbiting and wrong reporting about his colleagues to impress his boss. All the employees in the organisation knew about it. At the time of performance appraisal the performance of Namita was judged better than Aslam. Even then their boss, Saleem Khan decided to promote Aslam stating that being a female Namita will not be able to handle the complications of a higher post. (5)
(i) Identify and explain the principle of management which was not followed by this multinational c mpany.
(ii) Identify the values which are being ignored quoting the lines from the above para.
Question 23: Differentiate between formal and informal organization on the basis of the following: (6)
(iv) Flow of communication
Question 24: Radhika was a student of Business Studies of Class XII. Her father was a farmer who grew different varities of rice and was well-versed about various aspects of rice cultivation. He was also selected by the government for a pilot-project on rice cultivation. As a project-work in Business Studies she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested her to use internet to gather customers' views and opinions. She found that there was a huge demand for packaged organic rice. She knew that there were no pre-determined specifications in case of rice because of which it would be difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of 'Malabari Organic Rice' and classified it into three different varieties namely − Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation. Explain the three functions of marketing, with reference to the above paragraph. (6)
Question 25: Kay Ltd. is a company manufacturing textiles. It has a share capital of Rs 60 lakhs. In the previous year its earning per share was Rs 0.50. For diversification, the company requires additional capital of Rs 40 lakhs. The company raised funds by issuing 10% Debentures for the same. During the year the company earned profit of Rs 8 lakhs on capital employed. If paid tax at the rate of 40%.
State whether the shareholders gained or lost, in respect of earning per share on diversification. Show you calculations clearly. Also, state any three factors that favour the issue of debentures by the company as part of its capital structure. (6)