Unit Test – 01 Date-09/07/2025

Parishram PRO 2026 Class 12th Commerce (Kautilya)

Marks – 25 Time: 45 minutes
Business Stud ies
Instructions:
All questions are compulsory.
Q.1 to Q.5 are Multiple Choice Questions (1 mark each).
Q.6 & Q.7 are Short Answer Questions (3 marks each) – Answer in 50–70 words.
Q.8 & Q.9 are Long Answer Questions (4 marks each) – Answer in 100–120 words.
Q.10 is a Case-Based Long Answer Question (6 marks) – Answer in 150–200 words.
Question containing internal choices -only one to be attempted

Q1. A newly established resort with modern facilities opened near Chic Retreat, which led to a decline in its popularity
over the last six months. Identify the characteristic of the business environment responsible for this situation.
(A) Totality of external forces
(B) Dynamic nature
(C) Interrelatedness
(D) Uncertainty

Q2. Which principle of scientific management emphasizes that mutual prosperity of both workers and employers is
essential and interdependent?
(A) Science, not rule of thumb
(B) Co-operation, not individualism
(C) Harmony, not discord
(D) All of the above

Q3. Read the following statements and choose the correct option:
Statement I: Social, legal, technological, and political conditions are examples of specific forces of the business
environment.
Statement II: These forces affect all businesses, but their impact on an individual firm is usually indirect.
(A) Statement I is true, Statement II is false
(B) Statement I is false, Statement II is true
(C) Both statements are true
(D) Both statements are false

Q4. 'Bubbly Bee' Enterprises recently launched its new range of balloons with inbuilt lights on the occasion of Diwali
and set a target of 10% return on investment. The Managing Director, Sudhakar, integrated the efforts of all three
departments — Purchase, Production, and Sales — at different levels for achieving the target harmoniously. The
product was an instant hit and the company achieved its target. The characteristic of coordination discussed in the
above case is:
(A) Coordination is a continuous process
(B) Coordination is a deliberate function
(C) Coordination assures unity of action
(D) Coordination is an all pervasive function
Q5. "Principles of management are at the core of management theory. They provide basic groundwork for the
development of management as a discipline." Which significance of principles of management is highlighted in the
above statement?
(A) Optimum utilisation of resources and effective administration
(B) Providing managers with useful insights into reality
(C) Management training, education and research
(D) Meeting changing environment requirements

Q6. The students of Class XII of 'Bright Minds Academy' visited the factory of 'Global Garments LLP', a company
manufacturing readymade apparel. They observed that different workers were assigned specific tasks like cutting
fabric to specification, assembling garments, attaching fasteners, pressing finished items, packaging, and applying
labels. The Chief Executive Officer told the students that this leads to efficient and effective production. They also
noted the systematic arrangement in the factory, where every item had a designated place and was located there.
The students later discussed with their Business Studies teacher and understood that principles of management
given by Fayol were being followed in the factory.
Identify and explain the two principles of management that have been discussed in the above case.
OR
Coordination is the essence of management. Comment.

Q7. State any three features of ‘Demonetization’.

OR
Kaushik, a successful businessman, believes that although management is developing as a discipline, it is not yet
considered a fully developed profession. State any three reasons to support this viewpoint.

Q8. ‘Switch Fibers Ltd.’ is an electronics company based in Gujarat. It is generating less revenue compared to
‘Switchgears Ltd.’, a similar company in Maharashtra. Both companies are influenced by their respective
customers, suppliers, and competitors, and also indirectly by factors like money supply and family patterns.
(i) Identify the concept being referred to.
(ii) State any three points explaining the significance of this concept.
OR
Do you think management is an art? Give reasons in support of your answer.

Q9. Nitish, an employee at 'Novex Ltd.', noticed a consistent decline in the company's profits for eight months. He
started analyzing the external factors affecting the company's performance.
(i) At what level of management is Nitish working?
(ii) Mention any three other functions he may be performing.
OR
"Principles of Management serve as fundamental guidelines for managerial action." Explain any four key features
of these principles.

Q10. 'Sunglow Electronics', an electronic goods manufacturer in Bhopal, struggles with significantly lower revenue
compared to its competitor, 'Zenith Innovations' in Bengaluru. Both companies are directly impacted by external
stakeholders like investors, customers, rivals, and suppliers, each unique to their operational base. Furthermore,
businesses in this sector are indirectly influenced by broader economic factors such as monetary policy,
demographic shifts, and technological advancements.
(i) Identify and describe the key characteristics discussed in the above case study
(ii) Additionally, outline four significant benefits of understanding this concept.
 OR
Explain the following points of significance of principles of management:
(i) Scientific Decisions
(ii) Providing Managers with Useful Insights into Reality
(iii) Meeting Changing Environment Requirements

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