SS4

PRE BOARD EXAM-[2025-26]

BUSINESS STUDIES

TIME DURATION : 3 HOURS M.M:80

GENERAL INSTRUCTIONS
1. This question paper contains 34 questions.
2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words
7. Attempt all parts of the questions together.

Q1. ‘ XYZ Pvt. Ltd.’ is lagging behind its scheduled production target by a month.
Despite a high demand, the company is struggling to meet its production target.
Even after taking measures like training of employees and assigning additional
workers and equipment to the project, the targets could not be met. The
Production Manager, now, decided to revise the standards.
Identify the step of the controlling process under which the Production Manager
decided to revise the standards.
(A) Setting performance standards
(B) Measurement of actual performance
(C) Analysing deviations
(D) Taking corrective action [1]

Q2. Identify the dimension of business environment illustrated by the given

picture:

‘I AM AN A-I NEWS ANCHOR’

(A) Social
(B) Political
(C) Technological
(D) Economic [1]

Q3. [Link] works as a Marketing Manager in a stationery mart. It deals in

various types of stationery items for many schools across the country. When a new
session starts in schools, Moksha forecasts the sales of different stationery
products for each school for every month. All items are represented in numbers so
that it becomes easier for him to compare the actual sales with expected sales.
The type of plan discussed above is:
(A) Strategy
(B) Policy
(C) Programme
(D) Budget [1]

Q4. Read the following statements : Assertion (A) and Reason (R).
Assertion (A): The principles of management are guidelines to action, but do not
provide readymade, straitjacket solutions to all managerial problems.
Reason (R): Real business situations are neither complex, nor dynamic and are not
the result of many factors.
Choose the correct alternative from the options given below:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct
explanation of Assertion (A).
(C) Assertion (A) is true, but Reason (R) is false.
(D) Assertion (A) is false, but Reason (R) is true. [1]

Q5. Mr. Jaskirat Singh is working in ‘Fun Days Ltd.’ The company manufactures
games and toys for children. The basic task of Jaskirat is to integrate diverse
elements and coordinate the activities of different departments. He also analyses
the business environment and its implications for the survival of the firm. The
level of management at which Mr. Jaskirat Singh is working is:
(A) Top level
(B) Middle level
(C) Operational level
(D) Both Middle and Operational level [1]
Q6. ‘Ignite Taste' was set up by Omisaa Bansal to prepare and sell organic, vegan
and healthy sweets alternatives like hazelnuts date ladoos, dry fruit date burfi,
stuffed figs dates etc. For the last many years, the demand for her products was
very high as people these days prefer to buy healthier alternatives for
consumption as well as gifting purposes. But this year suddenly, the cost of dates,
dry fruits and other ingredients used for preparing these healthy sweets had
increased. With rising prices of raw materials, larger amounts of funds were
required to maintain a constant volume of production and sales. As a result, the
working capital requirement of ‘Ignite Taste' became higher.
The factor which led to an increase in the working capital requirements of ‘Ignite
Taste' was:
(A) Availability of raw material
(B) Inflation
(C) Scale of business
(D) Production cycle [1]

Q7. ‘AXP India Ltd.’ has been engaged in manufacturing and distribution of home
appliances since 1990. It has a good name in the market as the company is
producing good quality appliances. It has separate departments for manufacturing,
finance, sales, maintenance services and technical services to achieve
specialisation. Since the areas of operation of the company have increased and
customers have become more demanding, the company decided to modify the
existing principle of management to meet the changing requirements of the
environment.
Identify the general principle of management which the company wants to modify
to meet the changing requirements.
(A) Division of work
(B) Discipline
(C) Scalar chain
(D) Remuneration of employees [1]

Q8. Which of the following is not a limitation of the planning function of

management?
(A) Planning leads to rigidity.
(B) Planning reduces creativity.
(C) Planning guarantees success.
(D) Planning may not work in a dynamic environment. [1]
Q9. Organising provides a clear description of jobs and related duties. This helps
to avoid confusion and duplication. The point of importance of organizing
described above is:
(A) Adaptation to change
(B) Effective administration
(C) Development of personnel
(D) Expansion and growth [1]

Q10. There are two statements, Assertion (A) and Reason (R):
Assertion (A): Coordination ensures unity of action.
Reason (R): Coordination act as a binding force between departments and ensures
that all action is aimed at achieving the goals of the organisation.
Choose the correct alternative from the alternatives given
below:
(A) Both Assertion (A) and Reason (R) are correct and Reason (R)
is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are correct, but Reason (R)
is not the correct explanation of Assertion (A).
(C) Assertion (A) is correct, but Reason (R) is wrong.
(D) Assertion (A) is wrong, but Reason (R) is correct. [1]

Q11.A leading newspaper company decided to increase its market share by 10%.
After developing the premises, the company identified the following alternative
courses of action to be adopted:
(i) To have eco-friendly newspapers
(ii) To introduce specific sections for children
(iii) To have columns for increasing general awareness for competitive exams
(iv) To have international news on a daily basis
After identifying the above alternatives, a board meeting was called.
Identify from the following, the next step in the planning process which is to be
taken in the board meeting.
(A) Follow-up action
(B) Implementing the plan
(C) Evaluating alternatives courses
(D) Selecting an alternative [1]

Q12. Which of the following is not a protective function of Securities and

Exchange Board of India:
(A) Prohibition of fraudulent and unfair trade practices.
(B) Controlling insider trading and imposing penalties for such practices.
(C) Promotion of fair practices and code of conduct in the securities market.
(D) Undertaking measures to develop the capital markets by adapting a flexible
approach. [1]

Q13. There are two Statements, Assertion (A) and Reason (R).
Assertion (A): Larger the lead time, larger is the quantity of material required to
be stored and larger shall be the amount of working capital required.
Reason (R): If the raw material do not have a record of un-interrupted availability,
higher stock levels may be required.
Choose the correct alternative from the alternatives given
below:
(A) Assertion (A) is false and Reason (R) is true.
(B) Both Assertion (A) and Reason (R) are false.
(C) Assertion (A) is true and Reason (R) is false.
(D) Both Assertion (A) and Reason (R) are true and Reason (R)
is the correct explanation of Assertion (A). [1]

Q14. In an informal organisation, authority arises out of _____.

(A) Virtue of position in management
(B) Company's rules and policies
(C) Scalar chain
(D) Personal qualities [1]

Q15. One of the responsibilities of an aware consumer is to buy only standardised

goods as they provide quality assurance.
Identify the quality certification mark to be seen by a consumer in the picture
given below:
(A) ISI Mark
(B) Agmark
(C) Hallmark
(D) FPO/FSSAI Mark [1]

Q16. The right of an individual to command his subordinates and to take action
within the scope of his position' is called:
(A) Decentralization
(B) Authority
(C) Responsibility
(D) Accountability [1]

Q17 Going to the gym and following a protein diet has become a popular trend
these days. However, with the busy work culture, many people, especially the
youth, struggle to find time for weight loss programmes. Neelakshi was working in
a multi-national company, and wanted to join a gym to stay fit, but could not find
time. There is no good gym near her house. One day, Neelakshi was walking
out of the office during lunch time and saw an attractive poster of a gym which
was near her house. Neelakshi was curious to enquire about their Yoga
programme. Next day, when she went to the gym, she was surprised to know
about various schemes offered by the gym. They were not only offering 50%
discount on the fee of the Yoga programme, but were also providing free coach
facility and free protein diet for the customer. But these offers were valid only for
10 days. Attracted by these schemes Neelakshi immediately submitted the fee and
joined the gym.
Identify the element of marketing-mix discussed above.
(A)Product
(B)Price
(C)Promotion
(D)Place [1]

Q18. Read the following statements carefully :

Statement I : A single use plan is used for activities that occur regularly over a
period of time.
Statement II : Policies are a general form of standing plans that specify the
organisation's response to a certain situation.

In the light of the above statements, choose the correct alternative

from the following:
(A) Statement I is true and Statement II is false.
(B) Statement I is false and Statement II is true.
(C) Both Statement I and Statement II are true.
(D) Both Statement I and Statement II are false. [1]

Q19. The risk related to inability to meet fixed financial charge like interest
payment and other repayment obligations is known as:
(A) Operating risk
(B) Financial risk
(C) Business risk
(D) None of the above [1]

Q20. Statement -I: Regulation of takeover bids by companies is one of the

Regulatory functions of Securities and Exchange Board of India.
Statement-II: Training of intermediaries of securities market is one of the
Development functions of Securities and Exchange Board of India.
Choose the correct option from the following:
(A) Statement I is correct and Statement II is incorrect.
(B) Statement II is correct and Statement I is incorrect.
(C) Both Statement I and Statement II are correct.
(D) Both Statement I and Statement II are incorrect. [1]

Q21. ‘Golden Mills' started their business as a B2B supplier of high quality millet
seeds. The firm was set up in a backward area of Jharkhand. The firm was earning
just enough revenues to cover its cost. Over a period of time, due to rising
awareness amongst people about the health benefits of millets and with the year
2023 declared as 'International Year of Millets', the demand for millets increased
and the firm was able to earn profits. This gave a vital incentive to the firm to
continue its successful operations. It then expanded its operations and introduced
millet flour, millet-based snacks and millet-based beverages. With increase in its
operations, it provided employment opportunities specially to women, involving
them in dehusking, cleaning and packing of millets.
State the objectives of management highlighted in the above case. [3]

Q22. Differentiate between Divisional structure and Functional structure on the

basis of:
A. Responsibility
B. Cost
C. Coordination [3]
Q23. Tanvi Goyal, after completing her course in 'Nutrition and Fitness', wanted to
launch millet-based healthy snacks. She researched a lot and started
manufacturing a range of healthy, crunchy millet namkeens and named them 'Pure
Millets'. The name reflected natural ingredients, appealing to health-conscious
[Link] millet snacks were packaged in eco-friendly, bio-degradable
packets with a reasonable feature, ensuring freshness and convenience. The
stickers on the packets displayed the name with the tagline 'Power Your Health'
and nutritional information and certifications like 'Organic Certified' to establish
the product's health benefits. 'Pure Millets' got off to a good start.
In addition to features and quality, various other product-related important
decisions are discussed in the above case.
Identify and give the meaning of any three such decisions. [3]

Q24. Explain the following methods of training:

A. Apprenticeship Programmes
B. Internship Training
C. Vestibule Training

OR
Explain the following sources of recruitment:
A. Employment Exchange
B. Labour Contractors:
C. Web Publishing [3]

Q25. 'Apni Rasoi Ltd.' is a large company with 4000 workers engaged in
production of wide varieties of spices used in the Indian [Link] company has
been struggling with a persistent issue of workers making unreasonable demands
and going on strike frequently. To address the issue, the Chief Executive Officer
appointed a management expert who will analyse the situation and suggest
solutions to overcome the problem. The management expert analysed the
situation and suggested that the company could resolve the issue by following
Taylor's principle of Scientific Management which suggested complete mental
revolution on the part of both management and workers. It means that
management and workers should transform their thinking, where even trade
unions will not think of going on strike. It emphasises that prosperity of the
employer cannot exist for a long time unless it is accompanied by the prosperity
for the employees and vice versa.
A. Identify and explain the principle of Scientific Management discussed in the
above case by the management expert.
 B. Also, explain another principle suggested by Taylor, which is an extension
of the principle identified in part (A) above. [4]

[Link] has been the mainstay for several large homegrown restaurant
[Link] life expectancy of people and increased awareness for health
care amongst consumers has increased the demand for healthy food options.
Young consumers are moving away from consuming traditional sweets to buying
more western style premium products which are baked or steamed. With this shift
in consumer preferences, ‘Global Desi Restaurants’, a well known restaurant
brand, is gearing itself up for playing a greater role in the healthy packaged foods
market. In addition to traditional sweets,the company is also planning to expand
to healthy savoury and sweet items and some ready-to-eat items. These new
healthy products are expected to change people's lifestyles.
Identify and explain the two features of Business Environment highlighted in the
above case. [4]

Q27. Discuss any four benefits associated with planning as an important function
of management.

OR
Q. ‘The planning function of management has certain special features which throw
light on its nature and scope.’explain any four such features. [4]

[Link], the Managing Director of 'Gear Up Ltd. and Gurjas, the finance
manager were discussing avenues of investing the idle funds of the company.
Jasraj was of the opinion that money should be invested in the capital market
whereas Gurjas felt that it would be better if the investment was made in the
money market.
Explain with the help of any two points, giving reasons why Gurjas felt that
investment in the money market is better. [4]

[Link] had guests at home. She ordered a farm fresh vegetable pizza from
'Pizza House’. The Pizza came in a beautiful packaging and Drishti opened it with
a lot of excitement. However, when she started serving the pizza to the guests,
she realised that it was non-vegetarian. She checked the package and noticed that
there was no indication whether it was a vegetarian or non-vegetarian pizza. She
contacted 'Pizza House' for the same. The manager at 'Pizza House' apologized and
immediately sent a farm fresh vegetable pizza along with a complimentary
chocolate cup cake
Identify and explain the two consumer rights discussed in the above case. [4]
Q30. Harman is the Marketing Manager at ‘Health Foods Ltd’. He has a team of
four employees working under him-Aadya, Rohan, Pooja and Madhav. Aadya and
Rohan are temporary employees while Pooja and Madhav's job is permanent. All
four of them have been working hard and consistently met all targets. Harman
wanted to reward them for their good performance. He understood that in all
human beings, there exists a hierarchy of needs. So, he identified the need level
of each of the employees to provide motivation to them. Aadya and Rohan were
made permanent in the job with a good pension plan while Pooja and Madhav
were given an autonomy status.
A. Identify and state the need of employees recognized by Harman in the
above case.
B. State any two assumptions on which Maslow's Need Hierarchy Theory is
based. [4]

[Link] was running a business of producing and selling pickles, murabbas and
papad etc. She was earning a good profit for the last many years. Now, she wanted
to add some new products in her product line. Seeing the growing demand of
millets, she decided to add some millet products. After doing a lot of market
research, she found out that the demand for millet noodles, pasta and ready to
eat millet cereals was increasing day-by-day. To give a different taste and to have
uniqueness in her products, she prepared a new tasty herb based sauce for
cooking these products and decided to launch this along with millet products in
the market. For this Ayati hired 10 additional women workers specially
trained for the same. However, despite adding more workers, to her surprise,
production was not upto the mark. Concerned about this and to ensure that the
activities were performed as per the plans, and that the resources were
being used effectively and efficiently for the achievement of predetermined goals,
Ayati appointed a supervisor Saara.
Saara monitored the activities and discovered that two of the newly hired workers
were spending their whole day gossiping and distracting the other workers. As a
result the production was low.
A. Identify and state the function of management discussed above.
B. State any five points of importance of the function identified in part (A)
above. [6]

[Link] Ltd. is a fast moving consumer goods company. It has shareholders spread
all over India. Most of its shareholders depend upon a regular income from their
investment. VK Ltd. has been earning consistent profits. The management of the
company keeps in mind the preference of the shareholders regarding payment of
dividend. Since its shareholders, in general, desire that at least a certain amount
is paid as a dividend to them every year, the company declares a dividend every
year.
Atul, the Finance Manager of the company identified promising growth
opportunities. He suggested to the Chief Executive Officer to retain the earnings
to finance the required investments instead of declaring a dividend every year.
For this, the Chief Executive Officer decided to call a General Body Meeting of the
shareholders.
A. Identify two factors affecting dividend decisions discussed above.
B. State four other factors that affect the dividend decision of a company. [6]

Q33. State any six responsibilities that a consumer should keep in mind while
purchasing, using and consuming goods and services.

OR
[Link] any three (each) points of importance of consumer protection from the
point of view of:
A. Consumer
B. Business [6]

[Link] started a business of supplying high class facial kits to beauty

parlours in various cities of the country. Initially, the business was doing well and
her products were popular. Despite the high quality of the products, Radhika
faced difficulties in certain parlours, especially in Kagpur city, where her products
failed to gain a strong market presence. To understand the cause, she appointed a
qualified marketing manager. The marketing manager discovered that there was
no proper exchange of facts, ideas and views etc. between the incharge of Kagpur
city and the employees at different parlours at Kagpur. Vicky, who was the
incharge and responsible for overseeing all parlours in Kagpur, was unable to
effectively foster a common understanding of the product among the employees.
As a result, the employees did not grasp the key benefits and features of the high
class facial kits. In turn, the employees were not able to convince potential clients
about the product's value.
A. Identify the concept discussed in the above case.
B. The concept identified in (A) above can be defined as a process having
various elements. State first five elements of this process. [6]