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BUSINESS STUDIES Class – XII (2012-13) Max. Marks - 90 Practice Paper -2 Time - 3 Hrs. General Instructions: - 1. Answers to questions carrying 1 mark may be from one word to one sentence. 2. Answer to questions carrying 3 marks may be from 50 to 75 words. 3. Answer to questions carrying 4-5 marks may be about 150 words 4. Answer to questions carrying 6 marks may be about 200 words. 5. Attempt all parts of a question together.

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Which is the first step in staffing process? Supervisor acts as a link between workers and management. How? Every manager from top executive to superior performs the function of directing. Which characteristic of directing is referred here? It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities. Mention the importance of controlling indicated here. What does trading on equity refer to ? What should a company issue - shares or debentures if it does not want to lose control over the management of the company? What does capital market consist of? It is a market for short-term funds which deals in monetary assets whose period of maturity is upto one year. Name it. Personal selling possess the advantage of flexibility. Why? How does advertisement confuse the buyers? Business firms should aim at long-term profit maximisation through customer satisfaction. Why? Mention one reason behind importance of consumer protection from consumers' point of view. Briefly explain the characteristics of the principles of management. Illustrate the principle of 'stability of tenure' through a suitable example. 'Planning provides the basis of control'. Explain briefly. Enumerate the various steps in the process of planning. What is meant by 'Production concept' of marketing?

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'Bending the customer according to the product' and 'Developing the product according to customer­ needs' are the two important concepts' of marketing management. Identify the concepts and differentiate between the two. Why is organising considered an important function of management? Give the answer in about 60 words. Delegation ensures that the subordinates perform tasks on behalf of the manager thereby reducing his workload and providing him with more time to concentrate on important matters. ABC Company relies on delegation to a large extent. Benefits of effective delegation helps in achieving some values. Describe them. Explain the meaning and the objective of Financial Management. Explain the importance of consumer protection from point of view of business. "Management is regarded as a perfect science." Do you agree? Explain in brief any five reasons. 'Understanding of business environment gets a first mover advantage, acts as a warning signal for adverse conditions and sensitise the management.' Discuss. Explain the terms 'recruitment' and 'selection', in brief, and distinguish between them on the basis of --(a) Aim and (b) Nature. 'Planning and controlling are mutually interrelated and interdependent activities.' How? Explain any four semantic barriers of communication.

Or Explain the role of supervision as an element of directing function of management. You are the finance manager of a company. The board of directors have asked you to determine the working capital requirements for the company. State the factors that you would take in consideration while determining the requirements of working capital for the company.

Or What does financing decision involve? List the factors which affect the financing decision. Distinguish between 'Primary' and 'Secondary' market on the basis of: (i) Sale of securities (ii) Capital formation (iii) Determination of price (iv) Location

Or What do you mean by: (a) Initial public offer, (b) Rights Issue and (c) Preferential Issue ? Name that element of marketing mix which affects the revenue and profits of a firm. Explain any five factors which help in determining this element. Or "Generally consumers prefer to buy goods directly from the producers but it is not always possible." Give reasons, why is it so by explaining four different factors responsible for this.

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