PRACTICE PAPER-1

BUSINESS STUDIES-XII

SUBJECTIVE TYPE QUESTIONS (3-4 MARKS)

1. ‘Though branding adds to the cost, it provides several advantages to the consumers. In the light of
the statement, state any three advantages of branding to customers.

2.Rakesh Garments Ltd. are the manufacturers of ‘Ladies Designer Suits’ with their own
trade mark. During the year 2024-25 the company employed 30 senior technicians to work on
machines imported from France for manufacturing of ‘Ladies Designer Suits’. The
technicians were employed on a probation of one year and were put on their respective jobs
after 10 days of on-the-job training. Because of the faulty selection process, they could not
perform well. Ten of them left the job on their own and 12 had to be removed by the
company during the probation period. Now the company is in the process of selecting new
technicians. Advice the company about any three types of selection tests, describing each in
about 20 words, that may be used for selecting the desired technicians.

3.Krishna Hotels is a disciplined organisation. It has many branches. The organisation tries to
apply discipline in all its branches with equal effectiveness. However, it knows that the nature
and location of different branches are different. They work under the impact of different
cultures and work environments. Even then discipline as an important management principle
is applied to all its branches —big or small, within the country or at foreign locations.
Recently it formed a special body of five members to do research on cross functional
expertise. The organisation has learnt through the experience of the competitors that
understanding among various functional departments is important for increasing the
productivity of the organisation. So broadly it can be understood how such body is going to
affect the organisation through others’ experience. When it comes to remuneration of
employees the organisation adopts payment of different salaries for the same post. The logic
given by the organisation is that remuneration is based on situations and depends upon the
employee’s capacity and the expenses involved in a particular city. Which natures of
principles of management have been highlighted in the above case?
4.Give an example each of any three limitations of planning which are beyond the control of
an organization.

5.Piyush is the CEO of a company. He in accordance with the other board members decides
to formulate a general statement which will be guiding the thinking of the employees. He
further goes on to formulate many such statements in the next six months. These statements
could be divided into two categories. Which type of plan is indicated above? What are the
two types of this plan? Also give one example of this plan.

6. Innovators Ltd. Is doing business of manufacturing water purifier. It has already, been
manufacturing water purifiers since last 10 years. Now it has come up with a latest innovation
in the field of RO purifiers which all avoid wastage of water. It knows that there are many
competitors in the field as Whirlpool, Aqua guard, Zero B, Kent, Eureka Forbes, L.G. etc.
i. Which values is adopted by the company?
ii. Suggest which factors should it keep in mind while fixing the price of purifier.
iii. Which channel of distribution should the company adopt?
iv. Which is the most appropriate sales promotion methods for this.

7.“Management attempts to attain particular objectives, which must result from the
fundamental goal of the firm.” Give an explanation of the organizational and social goals of
management in light of the aforementioned statement.

8.What does the term “management” mean? Describe the three characteristics that make it an
art.

9.Mr. Rohan is an exceptional team leader. He knows that for a team to achieve its goals and
progress nicely communicative effectiveness is required. He always maintains what he says,
focuses on future goals of the organisation and never goes against his commitments. You can
find him most of the times busy communicating with his superiors or subordinates. When he
once delivers the message, he always checks whether his team is able to understand the
concept he is trying to communicate and he does it through proper questioning. He has a very
pleasing personality. Whenever he delivers a speech he focuses on his language, his voice and
the sentiments of his listeners. He is a real team leader. He gives members of his team
opportunities to express themselves. Whenever he is about to make a speech, he consults his
team members for developing a plan of communication by their participation and
involvement. He always says that whatever is useless should be rejected and whatever is
useful should be accepted. His purpose of speaking is to help others. He believes that a
speech should be such which takes into consideration interests and needs of the listeners.
There is a lot one can learn from Mr. Rohan’s personality. In the above case which measures
of communicative effectiveness have been adopted by Mr. Rohan? Identify them.

10. India’s largest domestic investor Life Insurance Corporation of India has once again come to
government’s rescue by subscribing 70% of Hindustan Aeronautics’ `4,200-crore initial public
offering.
a) Which market is being reflected in the above case?
b) State which method of floatation in the above identified market is being highlighted in the
case? (Primary Market)
c) Explain any two other methods of floatation. (Private Placement, offer through
prospectus, offer for sale).