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Class 12 Business – Question Paper - Set 1

Max. Marks: 30
Time: 1 Hour
Chapter: Planning
Q 1. (1 mark)
Q. 2. (1 mark)
Q. 3. (2 marks)
Q. 4. “Saurashtra‟ is a company involved in the export of indigenous food products like
chutneys and pickles.. it has tied up with the small farmers in various states for sourcing of
fruits and vegetables. In this way it helps the small farmers to sell their produce at
reasonable rates. The company follows a practice where only significant deviations from a
budget or plan are brought to the attention of management. The degree of deviations
allowed in different categories in the budget are well defined in advance, along with the
appropriate levels of managements who will respond to the deviations in question. For
example, a deviation of Rs. 20,000 or more in purchase costs will be reported to the
concerned department manager.
In context of the above case:
1. Identify the principle of management control adopted by the company. State the belief
underlying this principle.
2. List any two values that the company wants to communicate to the society. (3 marks)
Q. 5. Atul and Ajay are good friends. They decide to set up a digital printing press together
as both of them are compute wizards. They plan to offer various types of printed products
including labels, manuals, marketing material, memo pads, business order forms, T-shirts,
mugs etc. They set standards for every aspect of their work in order to create an efficient
working environment. As per the standards, an average person types between 38 and 40
words per minute. Keeping this in mind, they engage two typists Bitto and Raju and assign
them work accordingly. Within two days, they realize the output in terms of typing work
done by Raju is too less as compared to the desired output. On inspecting, Atul finds out
that Raju‟s typing speed is between 18 and 20 words per minute only. But Raju exhibits
great skills in designing work and is a good human being. Hence, Atul and Ajay decide to
retain him for doing creative work and appoint a new typist.
In context of the above case:
1. Identify and explain the function of management being discussed here.
2. List the steps involved in the function of management as identified in part (a). Also, quote
the lines from the paragraph relating to each step. (4 marks)
Q. 6. Anubhav has set up an export house after completing his masters in fashion
designing. As the quality of the garment depends on the quality of raw materials used, he
assures that the fabric meets the requirements by conducting a series of tests for the
fabrics like shrinkage test, testing colour fastness to washing, colour fastness to light, colour
fastness to perspiration etc. through laboratory tests. Later on, at the production areas,
fabric inspection is also conducted by stopping the production process. The tests help to
detect the deviations and also take corrective action. Moreover, the ensures that complete
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training about production work was given to every worker at the time of joining his export
house. In context of the above case:
1. Briefly explain the term “deviations.‟
2. Give any three advantages of giving training to the employees. (4 marks)
Q. 7. Alpha Ltd. was manufacturing Auto spare parts. To improve the efficiency of
employees the company provided training to their employees by inviting an expert who
demonstrated the whole process of manufacturing. The expert quoted that all deviations
cannot be controlled, so manager must know which deviation in key areas must be
attended urgently as compared to deviation in non-key area. He also suggested that human
beings are bound to brake mistakes as manager should not take strict action on every
minute mistake of workers, rather he can fix a range of deviation and take action if
deviation is above the specified large.
1. Identify the functions of management referred above.
2. Name and explain the two ways of analyzing deviation mentioned above.
3. Name and explain the method of training used by the company.
4. Identify the value being emphasized in above para. (5 marks)
Q. 8. A company “M‟ Ltd. is manufacturing mobile phones both for domestic Indian market
as well as for export. It has enjoyed a substantial market share and also had a loyal
customer following. But latterly it has been experiencing problems because its targets have
not been met with regard to sales and customer satisfaction. Also mobile market in India
has grown tremendously and new player have come with better technology and pricing.
This is causing problems for the company. It is planning to revamp its controlling system
and take other steps necessary to rectify the problems it is facing.
1. Identify the benefits the company will derive from a good control system.
2. How can the company relate its planning with control in this line of business to ensure
that its plan are actually implemented and targets attained?
3. Give the steps in the control process that the company should follow to remove the
problems it is facing. (5 marks)
Q. 9. A critical point control (CPC) approach is followed by McDonald in the cooking and
handling process so that any food safety threat can be prevented, eliminated, or reduced to
an acceptable level. Hence, continuous monitoring of activities are undertaken to ensure
that the process is right at each critical point control. The main principle followed for
cooking at McDonald is “less amount many time” which can ensure the high quality and
high fresh level of the food. For instance, if your hamburgers have to be made, a worker
cannot cook all the four hamburgers at one time. The time figured out for making one
hamburger is one hundred and forty-five seconds. Moreover, nearly all foods in the
McDonald have the specific holding time, the holding time for hamburgers is ten minutes
and for French fries is seven minutes. If it is not sold within that time it is thrown away. Also,
the temperature of the milk sent by t he supplier must be under 40 c, otherwise, it will be
returned.
In context of the above case:
1. Name the steps involved in the controlling process which is being discussed in the above
lines.
2. What do you understand by „critical point control‟? Explain.
3. How does the controlling function of management help in accomplishing organizational
goals and ensure efficient use of resources? (5 marks)
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Class 12 Business – Question Paper - Set 2

Max. Marks: 30
Time: 1 Hour
Chapter: Planning
Q 1. (1 mark)
Q. 2. (1 mark)
Q. 3. Babita Ltd. is engaged in manufacturing machine components. The target production
is 250 units per day per worker. The company had been successfully attaining this target
until two months ago. Over the last two months it has been observed that daily production
varies between 200-210 units per worker.
1. Identify the step in the process of the function stated above which helped in finding out
that the actual production of a worker is less than the set target.
2. To complete the process of the function identified in (a) and to ensure the performance
as per set targets, explain what further steps a manager has to take. (4 marks)
Q. 4. “A.S. Ltd.‟ is a large company engaged in assembly of air-conditioners. Recently the
company had conducted the „Time‟ and „Motion‟ study and concluded that on an average
a worker can assemble ten air-conditioners in a day. The target volume of the company in a
day is assembling of 1,000 units of air-conditioners. The company is providing attractive
allowances to reduce labour turnover and absenteeism. All the workers are happy. Even
then the assembly of air-conditioners per day is i800 units only. To find out the reason the
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company compared actual performance of each worker and observed through C.C.T.V. that
some of the workers were busy is gossiping.
1. Identify the function of management discussed above.
2. State those steps in the process of the function identified which are discussed in the
above praragraph. (3 marks)
Q. 5. (3 marks)
Q. 6. D & D Ltd. is a large manufacturing unit. Recently, the company has conducted the
“time‟ and “motion‟ studies and concluded that on an average a worker could produce 120
units per day. However, it has been noticed that average daily production of a worker is in
the range of 80-90 units.
State four features of the function of management stated above. (4 marks)
Q. 7. (4 marks)
Q. 8. Raghav started a take away eating joint in a nearby market. His business was doing
well. He ensured that the food was properly cooked, a standard taste was maintained,
packing of food was done effectively and the orders were executed on time. But
unfortunately he met with an accident and was advised three months bed rest. In his
absence, his cousin Rohit took charge of his business. When he resumed his work after
three months, he realized that his clientele had dropped. The people were not happy with
the services as the quality of food had deteriorated and the delivery time for orders had
increased considerably. All this was happening because most of his previous staff had left
as Rohit used to adopt a very strict and authoritative approach towards them.
In context of the above case:
1. List any two aspects about his business that Raghav was controlling in order to make it
successful.
2. Explain briefly any two points to highlight the importance of the controlling function.
3. Name and explain the style of leadership adopted by Rohit. (5 marks)
Q. 9. (5 marks)

Class 12 Business – Question Paper - Set 3

Max. Marks: 30
Time: 1 Hour
Chapter: Planning
Q 1. (1 mark)
Q. 2. (2 marks)
Q. 3. (2 marks)
Q. 4. (3 marks)
Q. 5. (4 marks)
Q. 6. (4 marks)
Q. 7. (4 marks)
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Q. 8. (5 marks)
Q. 9. (5 marks)

Answers for SET 1

Ans 1.
Ans 2.
Ans 3.
Ans 4. 1. Management by exception is the principle of management control adopted by the
company. It is based on the belief that “if you try to control everything, you may end up
controlling nothing.”
2. The two values that the company wants to communicate to the society are:
1. Rural development:
2. Sense of responsibility:
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Ans 5. 1. Controlling is the function of management being discussed here.
2. The steps involved in the process of controlling which are discussed in the above
paragraph are:
1. Setting standards of performance:
2. Measurement of actual performance:
3. Comparison of actual performance with the standards:
4. Analyzing deviations:
5. Taking corrective action:
Ans 6. 1. The term “deviations‟ refers to the difference between the actual performance
and planning
performance. If the actual performance is more than the planned performance, it may be
said to be
positive in nature or vice-versa.
2. The benefits of training of development to an organization are as follows:
1. Training imparts systematic learning to the employees thereby helping to avoid wastage
of efforts
and money and is considered better than the hit and trial method.
2. It increases the employees‟ productivity both in terms of quantity and quality, leading to
higher
profits.
3. Training increases the morale of the employees and reduces absenteeism and employee
turnover.
Ans 7. 1. Staffing and controlling
2. (i) critical Point Control
(ii) Management by exception
1. Apprenticeship method of training
2. Value of Humanity.
Ans 8. 1. Explain the importance of controlling.
2. Company can relate its planning with control in this line of business by following measure
by
implementing an effective controlling system and following a controlling process.
3. Explain steps in the process of controlling system.
Ans 9. 1. Analyzing deviation and taking corrective action are being discussed in the above
lines.
2. Since it may neither be economical nor easy to monitor each and every activity in the
organization,
there for every organization identifies and states its specific key result area (KRAs) or
critical points
which require tight control are likely to have a significant effect on the working of the
business. Any
deviations on these points are attended to urgently by the management.
3. The two points that highlight the importance of the controlling function are listed below:
1. Accomplishing organizational goals:
2. Making efficiently use of resources:
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Answers for SET 2

Ans 1.
Ans 2.
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Ans 3. “Comparing actual performance with standards” is the step involved in the process
of controlling which helped in finding out that the actual production of a worker is less than
the set target.
1. A manager has to take the following two further steps to complete the process of
controlling:
1. Analysing deviations
2. Taking corrective action
Ans 4. 1. Controlling
2. Steps discussed in the above paragraph are:
1. Setting performance standards
2. Measurement of actual performance
3. Comparing actual performance with the standards
4. Analyzing deviations for their causes.
Ans 5.
Ans 6. Features of controlling:
1. Controlling is a goal-oriented function
2. Controlling is a pervasive function
3. Controlling is a continuous process
4. Controlling is both a backward looking as well as forward looking function.
Ans 7.
Ans 8. 1. The two aspects about his business that Raghav was controlling in order to make
it successful are listed below:
1. A standard taste was maintained.
2. The orders were executed on time.
1. The two points that highlight the importance of the controlling function are listed below:
1. Judging accuracy of standards:
2. Improving employee motivation:
1. Rohit had adopted an autocratic style of leadership. An autocratic leader expects strict
compliance
form his subordinates with regard to the orders and instructions given by him. Therefore, it
involves
only one-way communication.
Ans 9.
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Answers for SET 3

Ans 1.
Ans 2.
Ans 3.
Ans 4.
Ans 5.
Ans 6.
Ans 7.
Ans 8.
Ans 9.