Business Studies Delhi Set 2 2022-2023 Commerce (English Medium) Class 12 Question Paper Solution

Business Studies [Delhi Set 2]
Marks: 80 CBSE
Commerce (English Medium)
Arts (English Medium)

Academic Year: 2022-2023
Date & Time: 25th March 2023, 10:30 am
Duration: 3h

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.


The next step in the 'Selection Process' after 'Selection Decision' is ______.

Job Offer

Medical Examination

Selection Tests

Contract of Employment

Concept: Staffing - Selection Process
Chapter: [0.016] Staffing

The purpose of planning is to meet future events effectively to the best advantage of an organisation. This statement highlights which of the following features of planning?

Planning focuses on achieving objectives.

Planning involves decision-making.

Planning is the primary function of management.

Planning is futuristic.

Concept: Concept of Planning
Chapter: [0.013999999999999999] Planning

Identify the external source of recruitment illustrated by the picture given below:

Direct Recruitment

Casual Callers


Labour Contractor

Concept: Staffing - Recruitment Process
Chapter: [0.016] Staffing

'Cartoony Planet' is a well-known indoor playground for organising parties for children in Noida. It has many play-stations and it organises various activities for the kids to enjoy. Looking at the increasing number of children visiting 'Cartoony Planet', a new indoor playground in the name of 'Tiny-Tots House' came up with advanced swings, play stations and entertainment activities near 'Cartoony Planet'.

To compete with the newly opened indoor playground, 'Cartoony Planet' also added some advanced swings and entertainment activities to attract more children.

The above information highlights one of the features of 'Business Environment'. Identify the feature from the following:


Dynamic Nature



Concept: Concept of Business Environment
Chapter: [0.013000000000000001] Management and Business Environment

______ is the obligation of a subordinate to properly perform the assigned duty. 




None of these


Concept: Concept of Supervision
Chapter: [0.017] Directing
“Dolma’ and ‘Una’ were gardeners with decades of hands-on experience. They were the first ones to recognise the need of indoor gardens specially for plant-lovers living in apartments. They took advantage of this opportunity and decided to offer beautiful designing ideas for indoor gardening through their innovative venture ‘My Space’. ‘My Space’ offered creative ideas like ‘Garden wall’, "Hanging Garden', ‘Window Garden’, “Book-shelf garden’ and many more. Since there were no competitors they soon became the market leaders in the field.

From the following points, identify the importance of Business-Environment high lighted above:

Business Environment helps the firm to identify threats and early warning signals.

Business Environment helps in tapping useful resources.

Business Environment enables the firm to identify opportunities and getting the first mover advantage.

Business Environment helps in assisting in planning and policy formulation.

Concept: Importance of Business Environment
Chapter: [0.013000000000000001] Management and Business Environment

'Digilocker' is a flagship initiative of ‘Ministry of Electronics and IT’, Government of India. It aims at digital empowerment of the citizens by providing access to authentic digital documents such as academic certificates issued by different Examination Boards, Driving Licenses, Vehicle registrations, etc. in a digital format.

The above para discusses a few dimensions of Business Environment.

Identify the correct dimensions from the following:

Economic Environment and Technological Environment

Social Environment and Economic Environment

Social Environment and Political Environment

Political Environment and Technological Environment

Concept: Dimensions of Business Environment - Macro
Chapter: [0.013000000000000001] Management and Business Environment
Different organisations have different goals. “Zeepo’ is an upcoming retail chain for providing consumer goods door-to-door, the objective of this organisation is to increase sales. 'Allie is an educational organisation working with an objective of providing education to under privileged children of the society. Management of each of these organisations unite the efforts of their employees towards achieving organisational goals.

The characteristic of management discussed above is:

Management is goal-oriented.

Management is a continuous process.

Management is a dynamic function.

Management is an intangible force.

Concept: Concept of Management
Chapter: [0.011000000000000001] Nature and Significance of Management

Whether the decisions have been translated into desired actions or not' can be confirmed by performing which of the following functions of management?





Concept: Concept of Controlling
Chapter: [0.018000000000000002] Controlling
Himanshu is working as' a ‘Marketing Manager' in 'Suvidit-Air-Conditioners’, a well known brand in the field of air-conditioners. Till last month the company was able to achieve its sales targets. But this month Himanshu observed that targets were not being met and the number of air-conditioners sold was decreasing. He analysed the situation and found that the new salesman appointed last month was not good and for this he took necessary action.

Which of the following functions of management helped Himanshu to identify the decrease in sale?





Concept: Management Functions
Chapter: [0.011000000000000001] Nature and Significance of Management

The activities whose outcome not only improves the job performance but also help individuals in the progress towards maturity and actualisation of their potential capacities is known as ______.




performance appraisal

Concept: Concept of Training and Development
Chapter: [0.016] Staffing

Statement-I: The concept of product relates to not only the physical product but also the benefits offered by it from customer's point of view.

Statement-II : The concept of product does not include the extended product by way of after sale services, availability of spare parts, handling complaints etc.

Both Statement-I and Statement-II are correct.

Both Statement-I and Statement-II are incorrect.

Statement-I is correct and Statement-II is incorrect.

Statement-I is incorrect and Statement-II is correct.

Concept: Elements of Marketing Mix
Chapter: [0.023] Marketing Management

Match the factors affecting fixed capital requirements given in Column - I with their explanations given in Column - II:

  Column - I   Column - II
(A) Nature of Business  (i) A trading organisation needs lower investments in fixed assets as compared to a manufacturing organisation.
(B) Technology upgradation (iii) A textile manufacturing company is installing a cement manufacturing plant and thus its investments in fixed assets is increasing.
(C) Diversification (iii) A capital-intensive organisation requires higher investments in fixed assets as compared to labour- intensive organisation.
(D) Choice of Technique (iv) Mobile phones became obsolete faster and are replaced much sooner than furniture or many other assets. Hence, these type of businesses require more fixed capital.

A - i, B - iv, C - ii, D - iii.

A - ii, B - iii, C - iv, D - i.

A - iii, B - ii, C - i, D - iv.

A - iv, B - i, C - iii, D - ii.

Concept: Factors Affecting Fixed and Working Capital Requirements
Chapter: [0.021] Financial Management

______ refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial charges like interest.

Capital structure

Earning per share

Trading on equity 

Return on investment

Concept: Concept of Capital Structure
Chapter: [0.021] Financial Management

The most commonly used tool of promotion which is a paid form of communication and in which the sponsor bears the cost of communicating with the prospects is ______.


personal selling

sales promotion

public relations

Concept: Concept of Advertising (Marketing)
Chapter: [0.023] Marketing Management

Which of the following statements is incorrect?

Capital Market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested.

Secondary market is the market where securities are sold by the company to the investor directly or through an intermediary.

Primary Market is the Market where only buying of securities takes place. Securities can not be sold there.

Money Market is a market for short term funds which deals in monetary assets whose period of maturity is upto one year.

Concept: Types of Financial Market - Capital Market
Chapter: [0.022000000000000002] Financial Markets

A name, term, sign, symbol, design or some combination of them used to identify the products — goods or services of one seller or ‘group of sellers and to differentiate them from those of the competitors is known as ______.


brand mark

brand name

trade mark

Concept: Product - Branding
Chapter: [0.023] Marketing Management

From the following, identify the channel of distribution in which goods pass from the 'manufacturer to the retailers who in turn, sell them to the final users.

One level channel

Two level channel

Three level channel

Zero level channel

Concept: Types of Channels of Distribution
Chapter: [0.023] Marketing Management

Which of the following statement is incorrect about personal selling?

It is a direct face to face dialogue that involves an interactive relationship between the seller and buyer.

It refers to short-term incentives designed to encourage the buyers to make immediate purchase of a product or service.

It allows a sales-person to develop personal relationship with the prospective customers.

In this it is possible to take a direct feedback from the customer and to adopt the presentation according to the needs of the prospects.

Concept: Concept of Personal Selling
Chapter: [0.023] Marketing Management

Which of the following is not a factor affecting capital structure of a company?

Cost of Debt

Growth Opportunities

Cash Flow Position

interest Coverage Ratio

Concept: Concept of Capital Structure
Chapter: [0.021] Financial Management
Monika, Rashmi and Garima are childhood friends. After completing their education, Monika joined a school as a teacher. Rashmi joined a firm as a Chartered Accountant and Garima as a General Manager in a Multi-National Company. After a long time in a re-union function of the school, they met each other. Rashmi said that they were all professionals now. Garima told Rashmi that she can say this about Monika and herself, but not about her since Manager is not considered a full-fledged professional.

Why did Garima say that she was not a professional? State any three points in support of your answer.

Concept: Concept of Management
Chapter: [0.011000000000000001] Nature and Significance of Management
Vibhu joined as a Chief Executive Officer (CEO) of Mega Marut Ltd, a firm manufacturing cars. On the first day he addressed his subordinates saying that organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates. He also added that for routine matters a worker can not directly contact the CEO but in an emergency he/she may contact directly.

Vibhu discussed an important principle of management. Identify and explain the principle with the help of an example.

Concept: Fayol’s Principles of Management
Chapter: [0.012] Principles of Management

Explain how controlling helps in 'making efficient use of resources' and 'improving employee motivation'.

Concept: Importance of Controlling
Chapter: [0.018000000000000002] Controlling

Explain the various steps involved in the process of control.

Concept: Steps in Controlling Process
Chapter: [0.018000000000000002] Controlling

State any five regulatory functions of the Securities and Exchange Board of India

Concept: Securities and Exchange Board of India (SEBI)
Chapter: [0.022000000000000002] Financial Markets

Explain any three functions of stock exchange.

Concept: Stock Exchange
Chapter: [0.022000000000000002] Financial Markets

“Filling vacancies for various job positions from within the organisation has many limitations." State any four such limitations.

Concept: Staffing - Recruitment Process
Chapter: [0.016] Staffing

“Training not only improves the current or future performance of employees but also benefits the organisation in many ways.’ State any four such benefits.

Concept: Importance of Training and Development
Chapter: [0.016] Staffing

State the assumptions of ‘Maslow’s Need hierarchy Theory of motivation'.

Concept: Maslow’s Hierarchy of Needs
Chapter: [0.017] Directing

State any four psychological barriers of communication.

Concept: Barriers to Effective Communication
Chapter: [0.017] Directing
Mahamana Enterprises is not only giving salary to its employees but it also offers bonus to them over and above the salary. To further encourage the employees, it announced that it will provide a share in the profits of the company to them. These incentives are helpful in increasing the purchasing power of the employees.

State four other incentives of the type of incentive discussed in the above para.

Concept: Motivation - Financial and Non Financial Incentives
Chapter: [0.017] Directing

Explain the factors affecting the dividend decision.

Concept: Financial Decisions - Financing and Dividend
Chapter: [0.021] Financial Management
Harish is working as a finance manager in 'Kozee Softwares Ltd.' He has been awarded “Best employee of the year Award’ because of his foresightedness. He always aims at smooth operations of all the financial activities by focusing on fund requirements and their availability in the light of financial decisions. He takes into consideration the growth, performance, investments and requirement of funds for a given period so that financial resources are not left idle and don't unnecessarily add to the cost.

By doing all this Harish strives to achieve the two main objectives of an important concept of financial management. Identify the concept and explain its two objectives.

Concept: Concept of Financial Planning
Chapter: [0.021] Financial Management
Sameeksha is a Class-XII student having Business Studies as one of her subjects. After studying ‘Consumer Protection’ as one of the chapters in Business Studies, she tried to apply the acquired knowledge while purchasing and using the goods. She is very fond of cooking and always tries new recipies. This time she wants to purchase a ‘Bread Maker to prepare homemade bread. She checked online about the various brands of ‘Bread Maker available in the market and compared their price, so that an intelligent and wise choice can be made. Then she went to a nearby market to buy it. Being an informed consumer she looked for the Standardization Mark, negotiated the price printed on the label, checked the date of manufacturing and asked for guarantee or warranty of the product.
After satisfying with all the concerned information she purchased the ‘Bread Maker' and as a responsible consumer asked for the cash-memo. After coming back home she opened the packaging of the ‘Bread Maker' and found an instruction booklet inside. She carefully read all the instructions and operated the Bread Maker step-by-step and succeeded in making nice ‘Atta Bread” for her family. Sameeksha has fulfilled many responsibilities of a consumer while purchasing and using the “Bread Maker.

State any four responsibilities fulfilled by Sameeksha besides asking for a cash-memo.

Concept: Consumer Rights and Responsibilities
Chapter: [0.024] Consumer Protection

What are the principles of scientific management? Explain in detail.

Concept: Principles of Taylor’s Scientific Management
Chapter: [0.012] Principles of Management

Explain the following technique of scientific management:

Motion study.

Concept: Techniques of Taylor’s Scientific Management
Chapter: [0.012] Principles of Management

Explain 'Universal Applicability' as a feature of principles of management.

Concept: Concept of Principles of Management
Chapter: [0.012] Principles of Management

Explain optimum Utilisation of resources and effective administration.

Concept: Significance of Management Principles
Chapter: [0.012] Principles of Management

Explain significance of principles of management.

Concept: Significance of Management Principles
Chapter: [0.012] Principles of Management

Give the meaning of objectives and budget as types of plans.

Concept: Concept of Planning
Chapter: [0.013999999999999999] Planning

State the Importance of Planning ?

Concept: Management Functions
Chapter: [0.011000000000000001] Nature and Significance of Management

“Best Electronics’ started manufacturing washing machines under the brand name ‘Amaze’. Once the washing machines were ‘manufactured, packaged, branded, priced and promoted, they had to be made available to the customers at the right place, in the right quantity and at the right time.

“Best Electronics’ provided for accurate and speedy processing of orders so that the washing machines reach the customers in time, in the right quantity and specifications. They also ensured that the washing machines are physically made available to the customers. Further, ‘Best Electronics’ arranged for facilities to store the washing machines at different locations near the market to minimize the charges on transportation.

Explain any three components of physical distribution discussed in the above case.

Concept: Components of Physical Distribution
Chapter: [0.023] Marketing Management
Due to spread of COVID-19 pandemic, employees of almost all the companies were working online from their homes. In 2022 when most of the companies called them back to their office and started working offline, ‘Taty Software Ltd.’ still asked their employees to work from home. Because of this, employees of “Taty Software Ltd.” were feeling bored, hence for recreation they formed a cricket-club. They started meeting every Saturday and Sunday on a ground near their office building.
  1. Identify and state the type of organisation formed by the employees of 'taty Software Ltd.
  2. Also, state any two advantages and two limitations of the type of organisation identified in (i) above.
Concept: Structure of Organisation
Chapter: [0.015] Organising

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