In this post I have provided CBSE Class 12 Business Studies Important Cased Based Questions With Solution. These questions are very important for those student who are preparing for their board examination.
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To score good marks in CBSE Class 12 Business Studies paper, students need to have a thorough understanding of the subject matter and the ability to connect theories with practical situations which are given below.
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Important Case Study Questions for CBSE Class 12 Business Studies Board Exam
| 1. | Yash, Ahmad and Shubham are partners in a firm engaged in the distribution of dairy products in Maharashtra state. Yash is a holder of a Senior Secondary School Certificate from the Central Board of Secondary Education with Business Studies as one of his elective subjects. Ahmad had done his post-graduation in History and Shubham in dairy farming. One day there was a serious discussion between Ahmad and Shubham regarding the nature of management. Ahmad argued that management was a profession whereas Shubham argued against it saying that the legal and medical professions are the only professions because they fulfil all the conditions of the profession. Yash on the basis of his knowledge of business studies explained the nature of management as a profession to Ahmad and Shubham. Explain how Yash would have satisfied both Ahmad and Shubham. |
| Yash would have satisfied both Ahmad and Shubham by giving the following explanation:Management is a profession. However, it is not a full-fledged profession like legal, accounting or medical professions because it does not meet the exact criteria of a profession. The application of the features of a profession to management is examined below:1. Well-defined body of knowledge2. Restricted Entry3. Professional Association4. Ethical code of conduct5. Service motive. | |
| 2. | The management of Malik Ltd. strongly believes that the members of an organization should work towards fulfilling the common organizational goals. This requires team work and integration of efforts of all individuals, departments and specialists. This is because all the individuals and departments depend on each other for information and resources to perform their respective activities. Managers need to reconcile differences in approach, timing, effort or interest. At the same time, it should enable all its members to grow and develop. Thus, there is a need to harmonize individual goals and organizational goals.1. Identify the concept of management discussed above.2. Explain any five features of the concept identified in (a). |
| 1. Coordination2. Features of coordination:1.It integrates group efforts into purposeful work activity.2.It ensures unity of action as it acts as a binding force between and among Departments.3.It is a continuous ongoing process as it is required till an organization exists.4.It is all-pervasive as it is required at all levels of management.5.It is the responsibility of all managers however the scope of their operations varies.6.It is a deliberate function. | |
| 3. | After finishing her BBA degree course, Rani gets a job of an Assistant Manager in a retail company through the reference of her cousin Taruna who works in the same company as a Senior Manager. Taruna decides to guide Rani through her experience by making her aware of the important facts about management in practice. She tells her that neither the principles of management provide any readymade, straitjacket solutions to all managerial problems nor they are not rigid prescriptions, which have to be followed absolutely.In context of the above case :Identify the two features of principles of management mentioned in the above paragraph by quoting lines from the paragraph.Why do the principles of management not provide readymade, straitjacket solutions to all managerial problems? |
| The two features of principles of management mentioned in the above paragraph are as follows:General guidelines: The principles of management are guidelines to action. Since the real business situations are very complex and dynamic and are a result of many factors, these principles do not provide readymade, straitjacket solutions to all managerial problems. But the importance of principles cannot be underestimated because even a small guideline may help to solve a given problem.Flexibile: The principles of management are not rigid prescriptions which have to be followed absolutely. They are flexible and can be modified by the manager when the situation so demands. They give the manager enough discretion to decide which principle should be used under what circumstances as individual principles are like different tools serving different purposes. As the real business situations are very complex and dynamic and are a result of many factors, the principles of management not provide readymade, straitjacket solutions to all managerial problems. | |
| 4. | Pradip works in a bulb manufacturing company. Each bulb that is manufactured is of standard size and quality. Further, if there is any unrequited type of bulb manufactured then its production is stopped. Last month when the company came to know that 10-watt bulbs were no more liked by customers, their production was stopped. He works in the purchasing department. His job is to purchase the filaments required to make bulbs. This time when he purchases the filament he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments inside the bulb. Pradip knows this information should be given immediately to the production department before the assembling process starts. However, he finds that his company’s policies only allow him to give the message to his immediate boss who will further pass this message to his boss. The passing of this message will continue until it reaches the desired person in the production department. Based on the passage answer the following questions:i) Which technique of management is followed here?a) Method studyb) Fatigue studyc) Standardization and simplificationd) None of theseii) Name the principle of management followed here by the company?a)Scalar chainb) Departmentalizationc) Division of Workd) None of the aboveiii) Which option is now available to Pradip since the company isnot allowing him to interact with the concerned worker in theproduction department?a) Organizationb)Authority and Responsibilityc) Gang plankd)All of theseiv) Which principle of management is followed by the company by creating a separate department?a) Division of workb) Method studyc) Departmentalizationd)Scalar Chain |
| i) b) Standardization and simplificationii) a) Scalar chainiii) c) Gangplankiv) a) Division of work | |
| 5. | Rakesh and Gaurav after finishing their graduation under vocational stream decided to start their own travel agency which will book Rail Tickets and Air Tickets on commission basis. They also thought of providing tickets within ten minutes through the use of internet. They discussed the idea with their Professor Mr. Mehta who liked the idea and suggested them to first analyze the business environment which consists of investors’, competitors and other forces like social, political etc. that may affect their business directly or indirectly. He further told them about the technological improvements and shifts in consumer preferences that were taking place and hence they should be aware of the environmental trends and changes which may hinder their business performance. He emphasized on making planskeeping in mind the threat posed by the competitors, so that they can deal with the situation effectively. This alignment of business operations with the business environment will result in better performance.1. Identify and state the component of business environment highlighted in the above Para.2. State any two features of business environment as discussed by Professor Mehta with Rakesh and Gaurav.3. Also state one point of importance of business environment as stated by Professor Mehta in the above situation. |
| 1. Technological Environment is the component of business environment highlighted in the above Para. Technological Environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.2. The two features of business environment as discussed by Professor Mehta with Rakesh and Gaurav are as follows:• Dynamic nature: It is dynamic in nature and keeps on changing due to technological up gradations, shifts in consumer preferences or increase in competition in the market.• Inter-relatedness: All the elements of business environment are closely interrelated. Therefore, any change is one element may necessitate corresponding changes in the other elements as well.3.The two points of importance of business environment as stated by Professor Mehta in the above situation are described below:i) It enables the firm to identify opportunities and getting the first mover advantage.ii) It helps the firm to identify threats and early warning signals. | |
| 6. | Suhasini, a home science graduate from a reputed college, has recently done a cookery course. She wished to start her own venture with a goal to provide ‘health food’ at reasonable prices. She discussed her idea with her teacher (mentor) who encouraged her. After analysing various options for starting her business venture, they short listed the option to sell ready made and ‘ready to make’ vegetable shakes and sattu milk shakes. Then, they weighed the pros and cons of both the short listed options.On the basis of above para, answer the following:(i) Name the function of management being discussed above.(ii) Give any one of its characteristics.(iii) Also briefly discuss any three limitations of the function discussed in the case. |
| (i) Planning is the function of management which is being discussed above.(ii) Planning involves decision-making: Planning essentially involves application of rational thinking to choose the best alternative among the various available alternatives in order to achieve the desired goals efficiently and effectively.(iii) The limitations of planning are described below:(a) Planning may not work in a dynamic environment: The business environment is dynamic in nature. Every organizationhas to constantly adapt itself to changes in its environment in order to survive and grow. However, it is difficult to anticipate all the likely future changes in the environment with utmost accuracy. Hence, even with planning, everything cannot be foreseen.(b) Planning reduces creativity: The top management undertakes planning of various activities whereas the other members are expected to merely implement these plans. This restricts the creativity of the middle level managers as they are neither allowed to deviate from plans nor are the permitted to act on their own.(c) Planning involves huge costs: The process of planning involves huge cost in terms of time and money as detailed planning is based on a series of scientific calculations. Moreover, it may include a number of related costs as well, like expenses on boardroom meetings, discussions with professional experts and preliminary investigations to find out the viability of the plan. As a result, the expenses on planning may turn out to be much more than benefits derived from it. | |
| 7. | A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional organisational structure with Separate departments for production, marketing, finance, human resources and research and development.Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into manufacture of new range of electronic toys for which a new market is emerging.What type of organizational structure should be followed by this company in this given situation? Give reasons with regard to benefits the company will derive from this organizational structure. |
| In the given situation, organizationshould shift from functional structure to divisional structure as the company wants to diversify; by adding a new product line. The reasons and benefits are-(i) The performance of each unit can be easily assessed.(ii) New product lines can be easily added without disturbing the existing units.(iii) Decision making is faster.(iv) Divisional structure maintains short line of communication with customers and provide better services to them. | |
| 8 | ABC Ltd. has hired 2000 buses for the different routes for the passengers of metropolitan city. In order to fill vacancies, it advertised in the newspaper and number of applicants applied for the same. The company has to now undertake the process of selection to identify and select the best. Explain the first six steps involved in the process. |
| Following are the steps involved in the selection process: -(i) Preliminary Screening: Preliminary screening helps the manager eliminate unqualified or unfit job seekers based on the information supplied in the application forms. Preliminary interviews help reject misfits for reasons, which did not appear in the application forms.(ii) Selection Tests: An employment test is a mechanism (either a paper and penciltest or an exercise) that attempts to measure certain characteristics of individuals. These characteristics range from aptitudes, such as manual dexterity, to intelligence to personality(iii) Employment Interview: Interview is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job. The role of the interviewer is to seek information and that of the interviewee is to provide the same. Though, in present times, the interviewee also seeks information from interviewer.(iv) Reference and Background Checks: Many employers request names, addresses, and telephone numbers of references for the purpose of verifying information and, gaining additional information on an applicant. Previous employers, known persons, teachers and university professors can act as references.(v) Selection Decision: The final decision has to be made from among the candidates who pass the tests, interviews and reference checks. The views of the concerned manager will be generally considered in the final selection because it is he/she who is responsible for the performance of the new employee.(vi) Medical Examination: After the selection decision and before the job offer is made, the candidate is required to undergo a medical fitness test. The job offer is given to the candidate being declared fit after the medical examination | |
| 9. | Prateek is working in a multinational company in Noida. He was running a temperature for the last many days. When his blood was tested, he was found to be positive for malaria. He was admitted in a hospital and a blood transfusion was advised by the doctors as his condition was very serious. One of his colleagues sent a text message to his superior, Mr Bhagat. Mr Bhagat immediately sent a text message to the employees of the organization requesting them to donate blood for Prateek. When the General Manager came to know about it, he ordered for fumigation in the company premises and cleaning the surroundings.From the above paragraph, quote lines that indicate formal and informal communication. |
| (i) Informal communication: “One of his colleagues sent a text message to his superior, Mr Bhagat. Mr Bhagat immediately sent a text message to the employees of the organization requesting them to donate blood for Prateek.”(ii) Formal communication: “When the general manager came to know about it, he ordered for fumigation in the company premises and cleaning surroundings.” | |
| 10. | ‘Anu Ltd’. Is a large company engaged in assembly of referigerators. Recently the company had conducted the ‘Time’ and ‘Motion ‘ study and concluded that on an average a worker can assemble ten referigerators in a day. The target volume of the company in a day is assembling of 1,000 units ten referigerators in a day. The target volume of the company in a day is assembling of 1,000 units of referigerators. The company is providing attractive allowances to reduce labour turnover and absenteeism. All the workers are happy. Even the assembly of referigerators per day is 800 units only. To find out the reason the company compared actual performance of each worker and observed through c.c.t.v. that some of the workers were busy in gossiping.(a) Identify the function of management discussed above.(b) State those steps in the process of the function identified which are discussed in the above paragraph. |
| (a) Controlling.(b)Steps discussed in the above paragraph are:-(i) “Setting performance Standard” which are the criteria against which the actual performance would be measured.‘Recently the company had conducted the ‘Time’….. Can assemble ten referigerators in a day.’(ii) ‘Measurement of Actual performance’ with the standards in an objective and reliable manner.‘Even then the assembly of air- conditioners per day is 800 nits only.’(iii) ‘Comparing Actual performance with the standards’ to find out the deviation, if any. ‘…the the company compared actual performance of each worker.’(iv) ‘Analyzing Deviations’ for their causes. ‘Observed through c.c.t.v. that some of the workers were busy in gossiping.’ | |
| 11. | Kishan is an enterprising businesswoman who has been running a fishery for the past ten years. She has saved Rs. 10 Lakhs from her business. She shared with her family her desire to utilize this money to expand her business. Her family members gave her different suggestions like buying new machinery to replace the existing one, acquiring altogether new equipment with latest technology, opening a new branch of the fishery in another village and so on. Since these decisions are crucial for her business, involve huge amount of money and are irreversible except at huge cost, Kishan wants to analyse all aspects of the decision, before taking any step.(i) Identify and explain the financial decision to be taken by Kishan.(ii) Also explain briefly any two factors that affect this decision. |
| (i) Investment decision/ Capital budgeting decision Investment/ Capital budgeting decision involves deciding about how the funds are invested in different assets so that they are able to earn the highest possible return for their investors.(ii) Factors that affect capital budgeting decision are: (a) Cash flows of the project (b) Rate of return of the project. (c) Investment criteria | |
| 12. | Few years ago, there were many malpractices, unfair trade practices and frauds and scams were taking place in stock exchange. All these affected investor’s confidence, faith and trust in stock exchange. The Government of India decided to set up a separate body for this purpose who was given control of stock exchange. This separated ownership and control of stock exchange.Answer the following MCQ’s by choosing the most appropriate option:a) Name the concept which separates ownership and control of stock exchange. (i) Dematerialization(ii) Demonetization(iii) Demutualization(iv) None of the above b) Name the body set up by Government of India to control stock exchange. (i) RBI(ii) SBI(iii) SEBI(iv) None of the above c) The main objective of SEBI is : (i) to stop malpractice and unfair trade practices.(ii) to increase revenue of RBI(iii) to spread awareness about capital formation(iv) none of the above d) The index of National Stock exchange is called:(i) Sensex(ii) Nifty(iii) both (i) and (ii) above(iv) None of the above e) The body set up by Government of India to regulate the functions of securities market, was set up in which year ?(i) 1988(ii) 1990(iii) 1992(iv) 1994 |
| a) – (iii) ; b) – (iii) ; c) – (i) ; d)- (ii) ; e) – (i) | |
| 13. | Dua got 10,00,000 rupees after selling her parental property which she had got as a gift from her grandmother. Her friend advised her to invest in securities in the stock market. Dua was unaware of the procedure for the same. Her friend introduced her to a stock broker, who was registered with the National Stock Exchange. Dua approached the broker. The broker guided her to open a DEMAT account with a Depository, as well as a Bank account. Dua opened a Bank account and DEMAT account with Exim Bank.(a) Identify the steps in the trading procedure for buying and selling of securities which have been discussed above.(b) State the next four steps of the trading procedure. |
| (a) The steps discussed in above para are- (i) Selection of broker- The buying and selling can be through SEBI broker. The first step is to select a broker who will buy/sell securities on behalf of investor. (in) Opening DEMAT account with a depository participant. (b) The next four steps of the trading procedure: (i) Placing an order: Investor places an order with the broker to buy or sell shares. Brokers go ahead with the deal and order confirmation slip is issued to the investor by the broker. (ii) Match the order: The broker will go online& match the share and the price. (iii) Executing order: When the shares can be bought and sold at the price mentioned it will be communicated to the broker terminal and order will be executed electronically.The broker will issue trade confirmation slip to investor. (iv) Issue of contract note: After the trade has been executed within 24 hours thebroker issues contract note. It contains details regarding no. & price of shares. | |
| 14. | Haldiram’s is a famous chain selling a variety of snacks in the Indian market. Their product includes sweets, mixtures, chips, etc. It charges a comparatively higher price as it sells high quality products. Besides, it offers regular discounts to its customers. It has several shops located in different cities at convenient locations. It also sells its products through grocery stores so that the products are made easily available to the customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.The above para describes the combination of variables used by Haldiram’s to prepare its market offering. Identify and explain the variables. |
| The 4 Ps of marketing mix- Product, Price, Physical distribution/place and Promotion. | |
| 15. | ‘VOICE’ is an an important consumer organization. It organized workshops in the months of December in Delhi/ NCR for consumers. The theme was ‘Organic Food –From Farm to Plate’ to spread awareness on the importance of organic farming and to encourage consumers to switch from conventional food that contains chemicals and pesticides to organic food. Expert speakers from farmers’ community explained the harmful effects of usage of pesticides in farming and the importance of organic food. People were informed that the organization regularly tests samples to detect adulteration like presence of heavy metals or pesticides.The results of the tests are published in their monthly magazine’ Consumer Voice’ to make people aware of quality of different products. It also provides aid and legal advice to the consumers in seeking a remedy.State the functions performed by the Consumer Voice for the protection and promotion of consumer interest by quoting lines from the above paragraph. |
| Functions performed by the Consumer Voice for the protection and promotion of consumerinterest:(a) Educating the general public about consumer rights by organizing training programmes, seminars and workshops. ‘organised consumer workshops in the months of December in Delhi/ NCR on the theme, of ‘Organic Food –From Farm to Plate’, as a part of its initiative to spread awareness on the importance of organic farming’(b) Publishing periodicals and other publications to impart knowledge about consumerproblems, legal reporting, reliefs available and other matters of interest.‘The results of the tests are published in their monthly magazine’ Consumer Voice’ to make people aware of quality of different products’(c) Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.‘People were informed that the organization regularly tests samples to detect adulteration like presence of heavy metals or pesticides’(d) Providing legal assistance to consumers by the way of providing aid, legal advice etc. in seeking legal remedy.‘It also provides aid and legal advice to the consumers in seeking a remedy’ |