CBSE Class 12 –Business Studies Question Paper 2022

1. Identify and state the step in the process of staffing under which the charge of the job is given to the selected employee and he/she is introduced to his/her superiors, subordinates, and colleagues.

  • Answer: The step in the process of staffing where the charge of the job is given to the selected employee and they are introduced to their superiors, subordinates, and colleagues is called Orientation or Induction. This step helps the new employee understand the work environment, the culture of the organization, and their role within the organization.

2. KLM Bank Ltd. is a leading bank with various branches across the country. On 27th Jan. 2022, it faced a sudden temporary shortage in cash balance in one of its branches. On the same day, it was decided by its directors to borrow funds from another bank for two days to maintain its cash reserve ratio. Identify and explain the money market instrument used by KLM Bank Ltd. to meet its short-term funds requirement.

  • Answer: The money market instrument used by KLM Bank Ltd. to meet its short-term funds requirement is called Call Money. Call money is a short-term borrowing or lending arrangement between banks and financial institutions, usually for one day or a few days, to meet temporary shortages in cash reserves or liquidity needs. It is typically used in the money market and is repaid within the agreed short time frame.

3. Give the meaning of “Communication” as an element of directing.

  • Answer: Communication as an element of directing refers to the process of conveying information, instructions, feedback, and suggestions between managers, employees, and other stakeholders in an organization. Effective communication is vital to ensuring that everyone understands their tasks, responsibilities, and the organization’s goals, fostering coordination, motivation, and overall productivity.

4. Identify and state the function of management which ensures that the organizational resources are being used effectively and efficiently for the achievement of pre-determined goals.

  • Answer: The function of management that ensures organizational resources are being used effectively and efficiently to achieve predetermined goals is Controlling. Controlling involves monitoring performance, comparing it with established standards or goals, and taking corrective actions if necessary to ensure that the resources are being used in the best possible manner.

5. Explain any two types of selection tests that may be conducted by Nandita Srivastava to select the most suitable persons.

  • Answer:
    1. Aptitude Tests: These tests measure the general abilities or potential of a candidate, such as reasoning ability, numerical ability, and problem-solving skills. This helps predict the applicant’s ability to perform well in the future job.
    2. Personality Tests: These tests assess the candidate’s personality traits and behavior patterns to determine whether they are a good fit for the organization’s culture and specific roles. It evaluates qualities like extroversion, emotional stability, and interpersonal skills.

6. What is meant by non-monetary incentives? State any two non-monetary incentives.

  • Answer:
    Non-monetary incentives are rewards and recognition offered to employees that do not involve direct financial compensation. These incentives are aimed at increasing employee satisfaction, motivation, and loyalty.

    • Two examples of non-monetary incentives:
      1. Recognition and Appreciation: Acknowledging and appreciating an employee’s efforts publicly, such as through certificates or awards.
      2. Career Development Opportunities: Offering employees opportunities for growth, such as training programs, skill enhancement, or promotions.

OR

State any three benefits of training to the organization.

  • Answer:
    1. Increased Productivity: Training enhances the skills and knowledge of employees, leading to improved performance and efficiency in their tasks.
    2. Reduced Employee Turnover: Well-trained employees are more likely to be satisfied and remain with the company, reducing the cost of recruitment and retention.
    3. Better Adaptation to Change: Training helps employees adapt to new technologies, processes, and changes in the work environment, making them more flexible and innovative.

7. State any three factors affecting working capital requirements of a company.

  • Answer:
    1. Nature of Business: Businesses involved in manufacturing or seasonal industries require more working capital to manage fluctuations in production and sales.
    2. Production Cycle: Companies with long production cycles will need more working capital to cover expenses during the production process.
    3. Credit Policy: Companies offering extended credit to customers will need higher working capital to cover the gap between sales and actual cash receipts.

8. Explain how controlling helps in accomplishing organizational goals and judging the accuracy of standards.

  • Answer:
    Controlling is the management function that ensures that organizational goals are being achieved by monitoring performance, comparing it with pre-established standards, and taking corrective actions if needed. It helps in:

    1. Accomplishing Organizational Goals: By regularly tracking and assessing performance, controlling ensures that actions are aligned with the set goals, leading to the achievement of objectives.
    2. Judging the Accuracy of Standards: Through continuous monitoring and performance evaluation, controlling helps identify any discrepancies between planned objectives and actual outcomes. It also ensures that the standards set are realistic and effective.

9. Explain the following consumer rights provided under the Consumer Protection Act, 2019:

(i) Right to Safety:
This right ensures that consumers are protected from goods and services that could be hazardous to their health, safety, or well-being. It guarantees that products meet safety standards and are free from risks when used properly.

(ii) Right to Be Informed:
Consumers have the right to be provided with accurate and detailed information about the goods and services they purchase. This includes details such as the price, ingredients, origin, and potential risks associated with the product.

OR

State any five responsibilities that should be kept in mind by a consumer while purchasing and using/consuming goods and services.

  • Answer:
    1. To be aware of their rights and responsibilities as consumers.
    2. To use goods and services as per the instructions and guidelines provided.
    3. To ensure the quality of the product or service before purchasing it.
    4. To report any defect, damage, or dissatisfaction to the supplier or service provider.
    5. To pay a fair price for the goods or services they receive and not to engage in fraudulent activities.

10. State any five functions of a ‘Stock Exchange’.

  • Answer:
    1. Facilitating Liquidity: A stock exchange provides a platform for the buying and selling of securities, ensuring that investors can easily convert their investments into cash.
    2. Price Discovery: Stock exchanges help determine the market price of securities through the forces of demand and supply.
    3. Raising Capital: Companies use stock exchanges to raise funds by issuing shares to the public through initial public offerings (IPOs).
    4. Regulating Securities Transactions: Stock exchanges regulate and oversee trading activities to ensure fairness, transparency, and compliance with rules.
    5. Providing Investment Opportunities: Stock exchanges offer a wide range of investment opportunities to investors, including stocks, bonds, and derivatives.