CBSE Class 12 Business Studies Sample Paper With Solution By Experts! Final Revision: CBSE Term 2 Exam

CBSE Class 12 Business Studies Term 2 Board exam is tomorrow that is May 17, 2022. Check the sample paper below set by experts for scoring good marks in the CBSE Business Studies exam (Term 2) 2022. The questions below are provided with the solution as well. Students who are to appear for the CBSE Term 2 Business Studies exam 2022 must solve the questions to score well in the exams.

CBSE Class 12 Business Studies Term 2 Board Exam 2022: Question Paper (PDF Download)| Answer Key Soon!

CBSE Class 12 Business Studies Paper By Experts: Questions 

1. Rekha is running a Diagnostic Centre in New Delhi. She has recently taken the franchise of a famous brand in order to expand her business. In order to meet the increased demand for manpower, she placed an advertisement in the local newspaper and shortlisted some candidates after conducting a selection test. Identify and explain the next four steps that she needs to follow in the related selection
2. Nisha Sethi was working as a Human Resource Manager in a famous consultancy firm, KLI Global Services. Her job included preparing job descriptions, recruitment, developing compensation and incentive plans and facilitating employee learning. They had entered into alliances with institutes to ensure continuous learning of their employees. With the jobs becoming more and more complex, KLI Global Services invested a large amount of money in making the employees learn the skills necessary to complete the jobs. State by giving any three points, how this investment is likely to benefit the organization.
3. A public transport corporation has hired 2000buses for the different routes for the passengers of a metropolitan city. In order to fill vacancies, it was advertised in the newspaper and a number of applicants applied for the same. The company has to now undertake the process of selection to identify and select the best. Explain the first six steps involved in the process.
4. Explain in one sentence how directing initiates an action in management.
5. Give any two elements of directing.
6. State the element of directing which helps in implementing the principle of a scalar chain.
7. What is meant by financial incentives? State any two financial incentives.
8. Describe the concept of Authoritative leadership and state its advantages?
9. Which two steps in the process of controlling are concerned with compelling events to confirm to plan? Explain.
10. How does dose controlling help in ―Judging the accuracy of standards‖ and ―Ensuring order and discipline?
11. How is critical point control applied in the controlling process?
12. Discuss the two objectives of Financial Planning.
13. Financial management is based on three broad financial decisions. What are these?

CBSE Class 12 Business Studies Term 2: Expert Sample Paper Solution

Ans. 1

The next 4 steps in the selection process are:-

(i) Employment Interview:

(ii) Reference and Background Checks:

(iii) Selection Decision:

(iv) Medical Examination

Ans. 2. Benefits of training to the organization:

(i) It avoids wasted efforts and money as training is systematic learning, better than hit and trial methods.

(ii) It enhances employee productivity both in terms of quantity and quality leading to higher profits.

(iii) It equips the future manager to take over in an emergency.

(iv) It reduces employee‟ turnover as it increases employee morale and reduces absenteeism.

(v) It helps in obtaining an effective response in a fast-changing environment.

Ans.3. (i) Preliminary Screening

(ii) Selection Tests

(iii) Employment Interview :

(iv) Reference and Background Checks

(v) Selection Decision :

(vi) Medical examination

Ans.4. Directing initiates action by ordering employees to attain the desired goal of an organisation.

Ans.5.  

(i) Supervision 

(ii) Leadership

Ans.6. Communication helps in implementing the principle of a scalar chain.

Ans. 7. Financial incentives refer to incentives which are in direct monetary form and serve to motivate people for better performance.

Two financial incentives are:

1. Pay and allowances: Salary is the basic monetary incentive for every employee. It includes basic pay, dearness allowance and other allowances.
2. Productivity linked wage incentives: Many wage incentives are linked with the increase in productivity at the individual or group level. For example, a worker is paid 50 rupees per piece if he produces 50 pieces a day but if he produces more than 50 pieces a day, he is paid 5 rupees extra per piece. Thus, on the 51st piece, he will be paid 55 rupees.

Ans.8.  In autocratic/Authoritarian leadership under this style, the leader concentrates all authority on himself and instructs subordinates as to what to do, when to do it; how to do it, etc. He also exercises close supervision and control over his subordinates. Subordinates are expected to do what they are told. The autocratic leader accomplishes the results through the use of authority, fear of deprivation, punishment and other negative rewards. As it is negative in character, the authoritarian approach will succeed only in the short run.

Advantages of Autocratic Leadership:

1. It provides for quick decision-making because here only one person i.e., the leader takes decisions.
2. Mostly subordinates like to work under the centralized authority and strict supervision.
3. As there is no consultation with subordinates, confidential matters can be kept secretly.
4. Leadership gives strong motivation and satisfaction to the leader who dictates terms.
5. At lower levels, only less competent subordinates are required.
6. This style may yield a positive outcome if great speed is needed.

Ans. 9. (i) Comparison of actual performance with standards: When actual performance is measured, its results are compared with standards. By this comparison, the deviation between actual performance and standard performance is derived.

(ii) Taking corrective actions: After the analysis of deviations, corrective action is taken. What type of corrective action will be taken depends on the factors causing the deviations.

Ans.10. Judging Accuracy of Standards. Controlling enables management to verify whether the standards set are accurate and objective. Ensuring Order and Discipline. Controlling ensures the maintenance of order and discipline by putting checks on undesirable activities of the employees.

Ans.11.  Every organization identifies its Key Result Areas/ Critical Points which have a significant effect on the working of the business. Any deviation on these points should be attended to urgently by Management.

Example: If the expenditure on refreshments goes up by 10% it can be ignored but if the cost of raw material goes up by 5% it requires managerial action.

Ans.12.  Financial Planning strives to achieve the following two objectives

(i) To Ensure Availability of Funds whenever These are Required This includes a proper estimation of the funds required for different purposes such as for the purchase of long-term assets or to meet day-to-day expenses of business etc.

(ii) To See That the Firm Does Not Raise Resources Unnecessarily Excess funding is almost as bad as inadequate funding. Efficient financial planning ensures that funds are not raised unnecessarily in order to avoid unnecessary addition of costs.

Ans.13. Financial management is concerned with the solution of three major issues relating to the financial operations of a firm corresponding to the three questions of investment, financing and dividend decision. In a financial context, it means the selection of the best financing alternative or best investment alternative. The finance function, therefore, is concerned with three broad decisions which are as follows:-

(i) Investment Decision The investment decision relates to how the firm’s funds are invested in different assets.

(ii) Financing Decision This decision is about the quantum of finance to be raised from various long term sources and short term sources. It involves the identification of various available sources of finance.

(iii) Dividend Decision This decision relates to the distribution of dividends. The dividend is that portion of profit which is distributed to shareholders the decision involved here is how much of the profit earned by the company is to be distributed to the shareholders and how much of it should be retained in the business for meeting investment requirements.

Hope the students enjoyed solving the paper set listed above. Jagran Josh wishes all the students of CBSE Class 12 Business Studies the Best Of Luck for CBSE Term 2 Exam 2022. 

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CBSE Class 12 Exam 2022: Most Important Topics In Economics, Accountancy & Business Studies| CBSE Board Term 2