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BUSINESS STUDIES Class – XII (2012-13) Max. Marks - 90 Practice Paper -3 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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"Staffing makes for higher performance by putting right person on the right job". Is this statement True or False? Directing facilitates introduction of needed changes in the organisation. Give one example to support this statement. It is defined as a process of influencing other people to work willingly for group objectives. Mention this element of directing. Controlling should not be misunderstood as the last function of management. Why? Give one importance of finance planning. Typically, financial planning is done for three to five years. Why not for long periods? It is an institution which provides a platform for buying and selling of existing securities. Mention it. What is the basic purpose of SEBI ? It has been defined as the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer values of management. Mention the concept defined here. How does grading of goods ensure the buyers? Business firms should aim at long-term profit maximisation through customer satisfaction. Why? Which kind of appeals can be taken to the Supreme Court? Explain the principles of 'discipline' and 'Esprit de Corps'. What does mental revolution imply in scientific management? Explain 'Method' and 'Rule' as types of plans. 'Planning is beneficial to all'. Explain in brief the benefits of planning function of management. Explain the role of marketing in a firm.

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'Determination of the price of a product' is influenced by many factors. Explain any three factors that have an influence on price. Distinguish between functional structure and divisional structure. Briefly explain the elements of delegation of authority. *Financial planning is essentially preparation of a financial blue print of an organiation's future operations. The objective of financial planning is to ensure that enough funds are available at right time.Financial planning is an important part of overall planning of any business enterprise. Charvi & Company is known for its financial planning. How financial planning contributes values to the system? Explain the following rights of a consumer: (i) Right to choose (ii) Right to seek redressal "Management is regarded as fully-developed profession." Do you agree? Give reasons. What is meant by 'political environment' of business ? State any four reasons why training is needed in any organisation? 'Controlling is a systematic process involving a series of steps.' Explain. "Every action in the organisation is initiated through directing." Explain any four points of importance of directing in the light of this statement. Or "Supervision is an important element of directing function." Explain any four reasons in support of the above statement. The directors of a company, of which you are the finance manager, have to design the capital structure for the company and have asked you about the factors that affect the capital structure of a company. Give your view points with reasons.

Or Explain the factors affecting the dividend policy ofa company. Explain the concept of Call Money and Certificate of Deposit.

Or Distinguish between 'Capital Market' and 'Money Market' on the basis of: (i) Expected return (ii) Safety (iii) Instruments (iv) Liquidity Name the element of marketing-mix in which a set of firms and individuals creates possession, place and time utility and helps in market offering. Also explain any five important functions performed by this element. Or Identify and explain the promotional tool of marketing-mix which plays a persuasive, service and informative role and thereby links a business firm to its customers. Also explain by giving any four reasons how this tool helps in increasing the sales of businessmen

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