H$moS> Z§ 66/1...66/1 5 P.T.O. Himanshu purchased a new car from NGalaxy Motors O for < 25 lakhs. He was offered free insurance for the first year and three free servicing to

66/1 1 P.T.O.

narjmWu H$moS >H$mo CÎma-nwpñVH$m Ho$ _wI-n¥ð >na Adí` {bIo§ & Candidates must write the Code on the

title page of the answer-book.

Series SSO H$moS> Z§. 66/1

Code No.

amob Z§. Roll No.

ì`mdgm{`H$ AÜ``Z

BUSINESS STUDIES

{ZYm©[aV g_` : 3 KÊQ>o A{YH$V_ A§H$ : 80

Time allowed : 3 hours Maximum Marks : 80

H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð> 15 h¢ & àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE H$moS >Zå~a H$mo N>mÌ CÎma-nwpñVH$m Ho$ _wI-n¥ð> na

{bI| & H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >25 àíZ h¢ & H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, àíZ H$m H«$_m§H$ Adí` {bI| & Bg àíZ-nÌ H$mo n‹T>Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h¡ & àíZ-nÌ H$m {dVaU nydm©•

_| 10.15 ~Oo {H$`m OmEJm & 10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-nÌ H$mo n‹T>|Jo Am¡a Bg Ad{Y Ho$ Xm¡amZ do CÎma-nwpñVH$m na H$moB© CÎma Zht {bI|Jo &

Please check that this question paper contains 15 printed pages.

Code number given on the right hand side of the question paper should be

written on the title page of the answer-book by the candidate.

Please check that this question paper contains 25 questions.

Please write down the Serial Number of the question before

attempting it.

15 minute time has been allotted to read this question paper. The question

paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the

students will read the question paper only and will not write any answer on

the answer-book during this period.

SET-1

Downloaded from www.studiestoday.com


66/1 2

gm_mÝ` {ZX}e :

(i) 1 A§H$ dmbo àíZm| Ho$ CÎma EH$ eãX go EH$ dmŠ` VH$ hm| &

(ii) 3 A§H$m| dmbo àíZm| Ho$ CÎma 50 – 75 eãXm| Ho$ hm| &

(iii) 4 – 5 A§H$m| dmbo àíZm| Ho$ CÎma bJ^J 150 eãXm| Ho$ hm| &

(iv) 6 A§H$m| dmbo àíZm| Ho$ CÎma bJ^J 200 eãXm| Ho$ hm| &

(v) EH$ àíZ Ho$ g^r ^mJ gmW-gmW hr hb H$s{OE &

General Instructions :

(i) Answers to questions carrying 1 mark may be from one word to one

sentence.

(ii) Answers to questions carrying 3 marks may be from 50 – 75 words.

(iii) Answers to questions carrying 4 – 5 marks may be about 150 words.

(iv) Answers to questions carrying 6 marks may be about 200 words.

(v) Attempt all parts of a question together.

1. ì`mdgm{`H$ n`m©daU go Š`m A{^àm` h¡ ? 1

What is ’eant by Business Environment ?

2. g_PmBE {H$ à~ÝY g_mO Ho$ {dH$mg _| {H$g àH$ma ghm`H$ hmoVm h¡ & 1

Explain, how management helps in the development of society.

3. {Z`moOZ Ho$ EH$ àH$ma Ho$ ê$n _| CÔoí` H$m AW© ~VmBE & 1

Give the meaning of Objectives as a type of plan.



66/1 3 P.T.O.

4. {h_mb` {b{_Q>oS> , H$n‹S>o YmoZo dmbr _erZm| H$m CËnmXH$ h¡ & g§JR>Z H$m bú` EH$ {XZ _| 500 H$n‹S>o YmoZo dmbr _erZm| H$m CËnmXZ H$aZm h¡ & g§JR>Z _| ì`mdgm{`H$ {d{eï>rH$aU h¡ Omo H$_©Mm[a`m| H$s Hw$ebVm _| d¥{Õ H$aVm h¡ & Bg àH$ma Ho$ g§JR>Z T>m±Mo _| à`mgm| H$s nwZamd¥{Îm Zht hmoVr &

Cn`w©º$ d{U©V g§JR>Z T>m±Mo Ho$ àH$ma H$mo nhMm{ZE & 1

Himalaya Ltd. , is engaged in manufacturing of washing machines. The

target of the organisation is to manufacture 500 washing machines a day.

There is an occupational specialisation in the organisation which

promotes efficiency of employees. There is no duplication of efforts in

such type of organisation structure.

Identify the type of organisation structure described above.

5. g_Vm H$s bmJV {H$g àH$ma EH$ H$ånZr H$s ny±Or g§aMZm Ho$ M`Z H$mo à^m{dV H$aVr h¡ ?

g_PmBE & 1

How does cost of equity affect the choice of capital structure of a

company ? Explain.

6. ^maV EŠgà¡g H$s Hy$[aà godmAm| _| {d{eï>Vm h¡ & BgHo$ n¡Ho$µO Ed§ nmg©b H$s Vrd«

godmAm| Ho$ {dñV¥V àH$ma ì`mdgm{`H$ \$_m] H$mo `h AmídmgZ {XbmVo h¢ {H$ Cn^moº$mAm|

H$mo dñVwE± C{MV ñWmZ Ed§ C{MV g_` na CnbãY H$amB© Om gH|$ &

AnZo CÎma Ho$ g_W©Z _| H$maU XoVo hþE C„oI H$s{OE {H$ ^maV EŠgà¡g H$s H$m ©erb ny±Or H$s Amdí`H$VmE± H$_ hm|Jr `m A{YH$ & 1

Bharat Express specialises in Courier Services. Its wide range of

express package and parcel services help business firms to make sure

that the goods are made available to the customers at the right place and

at the right time.

State with reason, whether the working capital requirements of

Bharat Express will be high or low.



66/1 4

7. _mé{V doJm {b{_Q>oS> Zo ~mµOma _| a§JrZ Q>obr{dµOZ Ho$ gmW àdoe {H$`m Am¡a A~

BgZo ldU gmYZm| (Am°{S>`mo {gñQ>åg), Eà-H§$S>reZg©, H$n‹S>o YmoZo H$s _erZ|, BË`m{X

CËnmXm| H$mo ^r àñVwV H$a {X`m h¡ & H$ånZr Ho$db CËnmXm| H$mo hr àñVwV Zht H$a ahr h¡

A{nVw {eH$m`Vm| H$mo Xÿa H$aZm Am¡a J«mhH$m| H$mo {dH«$` Ho$ ~mX H$s godmE± ^r CnbãY H$am

ahr h¡ &

`hm± M{M©V {dnUZ-{_l Ho$ VÎd H$mo nhMm{ZE & 1

Maruti Vega Ltd. entered into the market with coloured television and

have now introduced products like audio systems, air-conditioners

washing machines, etc. The company is not only offering the products but

also handling complaints and offering after-sales services.

Identify the element of marketing-mix discussed here.

8. {h_m§ew Zo J¡boŠgr _moQ>g© go < 25 bmI H$s EH$ ZB© H$ma IarXr & Cgo nhbo df© Ho$ {bE

_wµâV ~r_m VWm H$ma Ûmam H«$_e… 5,000 {H$bmo_rQ>a, 10,000 {H$bmo_rQ>a VWm

15,000 {H$bmo_rQ>a V` H$aZo na àW_ VrZ gµ\$mB©-YwbmB© (g{d©qgJ) H$s _wµâV godmE± àñVwV

H$s JBª & O~ {h_m§ew H$ma H$mo àW_ gµ\$mB©-YwbmB© (g{d©qgJ) H$s _wµâV godm Ho$ {bE bo H$a

J`m, Vmo Cgo ~Vm`m J`m {H$ `h H$ma ZB© H$ma Zht h¡ Am¡a Bg H$ma na gµ\$mB©-YwbmB©

(g{d©qgJ) H$s àW_ gw{dYm H$m bm^ nhbo hr CR>m`m Om MwH$m h¡ & Cgo AZw d hþAm {H$

CgHo$ gmW YmoIm hþAm h¡ Am¡a CgZo amÁ` H$_reZ _| EH$ {eH$m`V XµO© H$s & amÁ` H$_reZ

Ho$ {ZU©` go g§Vwï> Zht hmoZo na CgZo Xmo _hrZm| Ho$ ~mX {ZU©` {b`m {H$ dh BgHo$ {déÕ

Anrb H$aoJm &

Š`m {h_m§ew amÁ` H$_reZ Ho$ {ZU©` Ho$ {déÕ Anrb H$a gH$Vm h¡ ? AnZo CÎma Ho$ g_W©Z

_| H$maU Xr{OE & 1



66/1 5 P.T.O.

Himanshu purchased a new car from Galaxy Motors for < 25 lakhs. He

was offered free insurance for the first year and three free servicing to be

availed after the car had covered 5,000 km, 10,000 km and 15,000 km

respectively. When Himanshu took the car for the first free servicing, he

was told that the car was not new and first service had already been

availed on this car. He felt cheated and filed a complaint in the State

Commission. Being not satisfied with the decision of the State

Commission, after two months he decided to file an appeal against it.

Can Himanshu appeal against the decision of the State Commission ?

Give reason in support of your answer.

9. Am¡nMm[aH$ g§JR>Z go Š`m A{^àm` h¡ ? BgHo$ {H$Ýht Xmo bm^m| H$m C„oI H$s{OE & 3

What is meant by Formal Organisation ? State its any two advantages.

10. {dVaU _mÜ`_m| Ho$ M`Z H$mo H$ånZr-gå~pÝYV H$maH$ {H$g àH$ma à^m{dV H$aVo h¢ ? g_PmBE & 3

How do the Company-related factors affect the choice of channels of

distribution ? Explain.

11. E.Eg. {b{_Q>oS> EH$ ~‹S>r H$ånZr h¡ Am¡a nwOm] H$m g§`moOZ H$aHo$ Eà-H§$S>reZg© H$m CËnmXZ H$aVr h¡ & hmb hr _| H$ånZr Zo g_` Ed§ J{V AÜ``Z {H$`m h¡ Am¡a `h {ZîH$f© {ZH$mbm {H$ Am¡gV ê$n go EH$ _µOXÿa EH$ {XZ _| Xg Eà-H§$S>reZg© Ho$ nwO} g§`mo{OV H$a gH$Vm h¡ & H$ånZr H$m bú` EH$ {XZ _| Eà-H§$S>reZg© H$s 1,000 BH$mB`m| Ho$ nwOm] H$m g§`moOZ H$aZm h¡ & H$ånZr l_ AmdV© Xa H$mo Ed§ AZwnpñW{VdmX H$mo H$_ H$aZo Ho$ {bE AmH$f©H$ ^Îmo àXmZ H$aVr h¡ & g^r _µOXÿa ~hþV Iwe h¢ & bo{H$Z {\$a ^r EH$ {XZ _| Ho$db 800 BH$mB© Eà-H§$S>reZg© Ho$ nwOm] H$m hr g§`moOZ hmo ahm h¡ & H$maU nVm bJmZo Ho$ {bE H$ånZr Zo àËòH$ _µOXÿa Ho$ dmñV{dH$ {ZînmXZ H$s VwbZm H$s Am¡a gr.gr.Q>r.dr. Ho$ _mÜ`_ go XoIm {H$ Hw$N> _µOXÿa Jnen _| ì`ñV Wo &

(A) Cn`w©º$ M{M©V à~ÝY Ho$ H$m © H$mo nhMm{ZE &

(~) nhMmZ {H$E JE H$m`© H$s à{H«$`m Ho$ CZ MaUm| H$m C„oI H$s{OE {OZH$s MMm©

Cn w©º$ AZwÀN>oX _| H$s JB© h¡ & 3



66/1 6

A.S. Ltd. is a large company engaged in assembly of air-conditioners.

Recent‘y the co’pany had conducted the Ti’e and Motion study and

concluded that on an average a worker can assemble ten air-conditioners

in a day. The target volume of the company in a day is assembling of

1,000 units of air-conditioners. The company is providing attractive

allowances to reduce labour turnover and absenteeism. All the workers

are happy. Even then the assembly of air-conditioners 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.

12. eoà ~mµOma AmO Ho$ ì`mdgm{`H$ OJV _| ~hþV go A{Zdm`© H$m`© gånÞ H$a ahm h¡ & Eogo {H$Ýht VrZ H$m`m] H$mo g_PmBE & 3

The Stock Exchange performs many vital functions in today s commercial

world. Explain any three such functions.

13. O`Xrn Zo A^r-A^r EH$ doe^yfm {S>µOmBZ H$aZo dmbr H$ånZr {Vdmoar {b{_Q>oS> , _|

à~ÝY {ZXoeH$ Ho$ ê$n _| nX^ma g§^mbm h¡ & CgZo XoIm {H$ H$ånZr H$s doVZ-gyMr _| ~hþV

go AZw^dr µ\¡$eZ {S>µOmBZa Wo & do {Z`{_V ê$n go Cn`moJr gwPmd XoVo Wo & BZ gwPmdm| H$s

Z Vmo H$ånZr Ûmam H$moB© àe§gm H$s OmVr Wr Am¡a Z hr CZHo$ {bE H$moB© àmoËgmhZ {X`m OmVm

Wm & BgHo$ ~Xbo H$ånZr Zo Hw$N> à{gÕ µ\¡$eZ {S>µOmBZg© H$s godmAm| H$m ~mø òmoVrH$aU

{H$`m hþAm Wm Am¡a CÝh| CZH$s godmAm| Ho$ ~Xbo AÀN>o nm[al{_H$ H$m ^wJVmZ {H$`m OmVm

Wm & Bg H$maU H$_©Mmar hVmoËgm{hV AZw^d H$a aho Wo Am¡a CÝhm|Zo Cn`moJr gwPmd XoZo ~§X

H$a {XE Wo &

(A) D$na d{U©V H$s JB© gåàofU ~mYm H$mo nhMm{ZE &

(~) C„oI H$s{OE {H$ Cn`w©º$ gåàofU ~mYm H$mo {H$g loUr _| dJuH¥$V {H$`m Om gH$Vm

h¡ &

(g) Bg loUr H$s {H$gr AÝ` gåàofU ~mYm H$mo g_PmBE & 3



66/1 7 P.T.O.

Jaideep recently joined as the Managing Director of Tivori Ltd. , an

apparel designing company. He observed that the company had a number

of experienced fashion designers on its payroll. They regularly offered

useful suggestions which were neither appreciated nor rewarded by the

company. Instead the company outsourced its services to some renowned

fashion designers and paid them a good compensation for their services.

Because of this the employees felt disheartened and stopped giving useful

suggestions.

(a) Identify the communication barrier discussed above.

(b) State the category of this communication barrier.

(c) Explain any other communication barrier of the same category.

14. à~ÝY go Š`m A{^àm` h¡ ? à~ÝY Ho$ {H$Ýht VrZ CÔoí`m| H$m C„oI H$s{OE & 4

What is ’eant by Manage’ent ? State any three objectives of

management.

15. ì`dgm` Ho$ Ñ{ï>H$moU go Cn^moº$m g§ajU Ho$ _hÎd Ho$ {H$Ýht Mma {~ÝXþAm| H$mo g_PmBE & 4

Explain any four points of importance of consumer protection from the

point of view of business.

16. ZraO Jwám Zo Xg H$_©Mm[a`m| Ho$ gmW ^maVr` J«m_rU ~mµOma Ho$ {bE nwOm] H$m g§`moOZ H$a

gñVo H$åß`yQ>g© H$m CËnmXZ H$aZo Ho$ {bE `mo`mo {b{_Q>oS> Zm_ go EH$ H$ånZr Ama§^ H$s &

AnZo àmapå^H$ dfm] _| H$ånZr Zo ~hþV AÀN>m H$m`© {H$`m & My±{H$ CËnmX AÀN>m Wm Am¡a

CgH$m {dnUZ ^r R>rH$ àH$ma go hmo ahm Wm, Bg{bE _m±J ~‹T> JB© & CËnmXZ H$mo ~‹T>mZo Ho$

{bE H$ånZr H$mo A{V[aº$ H$_©Mm[a`m| H$s ^Vu H$aZr n‹S>r & ZraO Jwám, Omo nhbo gmao {ZU©`

ñd`§ bo ahm Wm, H$mo Hw$N> Mw{ZÝXm A{YH$mam| H$m A§VaU H$aZm n‹S>m & Cgo `h {dídmg Wm

{H$ AnZo {ZU©`m| H$mo à^mdnyU© T>§J go bmJy H$aZo Ho$ {bE bmoJ nyU© ê$n go gj_, g_W© Ed§

gmYZ gånÞ h¢ Am¡a AnZo {ZU©`m| H$mo à^mdnyU© T>§J go bmJy H$aZo H$m CÎmaXm{`Ëd CR>m



66/1 8

gH$Vo h¢ & BgHo$ AÀN>o n[aUm_ {_bo Am¡a H$ånZr Z Ho$db AnZm CËnmXZ ~‹T>mZo _| g_W©

ahr A{nVw {d{^Þ {deofVmAm|� Ho$ gmW BgZo AnZr CËnmX ûm¥§Ibm _| ^r {dñVma H$a

{b`m &

(A) Cg AdYmaUm H$mo nhMm{ZE, {OgH$m à`moJ H$aHo$ ZraO Jwám AnZr H$ånZr H$mo

A{YH$ D±$MmB`m| VH$ bo OmZo _| gj_ hmo J`m &

(~) Bg AdYmaUm Ho$ _hÎd Ho$ {H$Ýht VrZ {~ÝXþAm| H$mo ^r g_PmBE & 4

Neeraj Gupta started a co’pany YoYo Ltd. with ten employees, to

assemble economical computers for the Indian rural market. The

company did very well in its initial years. As the product was good and

marketed well, the demand went up. To increase production the company

decided to recruit additional employees. Neeraj Gupta, who was earlier

taking all decisions for the company, had to selectively disperse the

authority. He believed that people are competent, capable and

resourceful and can assume responsibility for effective implementation of

their decisions. This paid off and the company was not only able to

increase its production but also expanded its product range with different

features.

(a) Identify the concept used by Neeraj Gupta through which he was

able to steer his company to greater heights.

(b) Also explain any three points of importance of this concept.

17. JJ©`m {b{_Q>oS> Ho$ H$_©Mmar ~‹T>r hþB© _m±J H$mo nyam H$aZo Ho$ {bE H$ånZr Ûmam Am`mV H$s JB© ZB© H$åß`yQ>arH¥$V _erZm| na H$m_ H$aZo Ho$ `mo½` Zht h¢ & Bg{bE H$_©Mmar n`©dojH$ go A{V[aº$ _mJ©Xe©Z H$s _m±J H$a aho h¢ Am¡a H$_©Mm[a`m| Ho$ ~ma-~ma ~wbmZo Ho$ H$maU n`©dojH$ na ~hþV A{YH$ ^ma h¡ &

gwPmd Xr{OE {H$ n`©dojH$ {H$g àH$ma H$_©Mm[a`m| Ho$ H$m¡eb d kmZ H$mo ~‹T>mH$a CÝh| ñdVÝÌ ê$n go H$m`© g§^mbZo Ho$ `mo½` ~Zm gH$Vm h¡ &

Eogo {H$Ýht VrZ bm^m| H$m ^r C„oI H$s{OE Omo H$_©Mm[a`m| H$mo n`©dojH$ Ho$ {ZU© Ûmam àmá hm|Jo & 4



66/1 9 P.T.O.

The workers of Gargya Ltd. are unable to work on new computerised

machines imported by the company to fulfil the increased demand.

Therefore, the workers are seeking extra guidance from the supervisor

and the supervisor is overburdened with the frequent calls of workers.

Suggest how the supervisor, by increasing the skills and knowledge of

workers, can make them handle their work independently.

Also state any three benefits that the workers will derive by the decision

of the supervisor.

18. AnZr E_.~r.E. H$s n‹T>mB© nyar H$aZo Ho$ CnamÝV ~oZr Zo \$moa{Q>Amo Zm_ H$s EH$ ~hþamï´>r`

H$ånZr _| Zm¡H$ar àmaå^ H$s & H$ånZr AnZo H$_©Mm[a`m| H$mo AÀN>o doVZ Ed§ ^Îmm| H$m

^wJVmZ H$a ahr Wr & _µOXÿar, H$ånZr H$s ^wJVmZ j_Vm Ho$ AZwgma Wr Omo H$_©Mm[a`m| H$mo

EH$ C{MV OrdZ-ñVa àXmZ H$a ahr Wr & H$ånZr H$m H$m`© H$aZo H$m VarH$m ~hþV AÀN>m Wm

Am¡a A{YH$mar AnZo AYrZñWm| Ho$ gmW ~hþV AÀN>m ì`dhma H$aVo Wo & ~oZr Bg g§JR>Z _|

~hþV Iwe Wr, bo{H$Z b§~o H$m`© K§Q>m| Ho$ H$maU CgHo$ nmg AnZm ImZm nH$mZo Ho$ {bE g_`

Zht Wm & Cgo ~mhar ImZo na {Z^©a hmoZm n‹S>Vm Wm, {Oggo CgH$m ñdmñÏ` {~J‹S> ahm Wm &

CgZo `h XoIm {H$ Bg g_ñ`m H$m gm_Zm Z Ho$db CgH$s H$ånZr _| CgHo$ ghH$_u H$a aho

h¢ A{nVw H$B© AÝ` H$ån{Z`m| _| ^r `h g_ñ`m h¡ & BgH$m H$maU H$m`© H$aZo dmbr

_{hbmAm| H$s g§»`m _| d¥{Õ VWm Ka Ho$ nHo$ hþE ñdmñÏ`H$a ImZo H$s AZwnbãYVm Wr &

CgZo Bgo EH$ ~‹S>o Adga H$s Vah nhMmZm Am¡a AnZr Zm¡H$ar N>mo‹S>H$a Am°{\$g OmZo dmbm|

Ho$ {bE Ka H$m nH$m n¡Ho$µO ImZm C{MV _yë` na CnbãY H$amZo H$m {ZU©` {b`m & {XZ Ho$

A§V _| dh ~Mo hþE ImZo H$mo nmg Ho$ hr am{Ì-Aml`J¥hm| (a¡Z-~goam|) _| ~m±Q>Vr Wr &

(A) ì`mdgm{`H$ n`m©daU Ho$ Cg Am`m_ H$m C„oI H$s{OE {OgH$s MMm© D$na H$s JB© h¡ &

(~) \$moa{Q>Amo Ûmam AnZmE JE à~ÝY Ho$ {gÕmÝV H$m C„oI H$s{OE &

(g) Eogo {H$Ýht Xmo _yë`m| H$mo nhMm{ZE {OÝh| Cn`w©º$ CXmhaU Ûmam H$ånZr Zo g_mO H$mo gåào{fV {H$`m h¡ & 4



66/1 10

Beni, after completing her MBA, took up a job with a multinational

co’pany na’ed Fortio . The company was paying good salary and perks

to its employees. The wages were within the paying capacity of the

company that provided the employees a reasonable standard of living.

The company also had a good work-culture and the behaviour of

superiors was very good towards their subordinates. Beni was very happy

in this organisation, but due to long working hours she did not have time

to cook her meal. She had to depend upon outside food, which was

deteriorating her health.

She observed that this problem was faced by many of her colleagues, not

only in her company but also in many other companies. This was because

of increase in the number of working women and non-availability of

hygienic home-cooked food. She identified this as a great opportunity and

decided to give up her job to supply packaged home-cooked food to office

goers at a reasonable price. At the end of the day she was also

distributing the left-over food in the nearby night-shelters.

(a) State the dimension of business environment being discussed

above.

(b) State the principle of manage’ent being fo‘‘owed by Fortio .

(c) Identify any two values being communicated by the company to the

society in the above case.

19. {_eZ H$moM {b{_Q>oS> , EH$ {demb Ed§ AÀN>r-gmI dmbr H$ånZr h¡ Omo ^maVr` aobdo Ho$ {bE {S>ã~m| H$m {Z_m©U H$aVr h¡ & `h A~ BZ {S>ã~m| H$mo Xÿgao Xoem| H$mo {Z`m©V H$aZm MmhVr h¡ Am¡a ZB© Cƒ-VH$ZrH$ dmbr _erZm| _| {Zdoe H$aZo H$m {dMma H$a ahr h¡ & {Zdoe H$s A{YH$ _mÌm hmoZo Ho$ H$maU H$ånZr H$mo XrK©H$m{bH$ {dÎm H$s Amdí`H$Vm h¡ & H$ånZr Zo {ZU©` {b`m {H$ dh g_Vm A§e Omar H$aHo$ {dÎm EH${ÌV H$aoJr & g_Vm A§em| H$mo Omar H$aZo _| ~hþV A{YH$ {ZJ©_Z bmJV (âbmoQ>oeZ H$m°ñQ>) {Z{hV h¡ & {ZJ©_Z bmJV (âbmoQ>oeZ H$m°ñQ>) Ho$ IMm] H$mo nyam H$aZo Ho$ {bE H$ånZr Zo _wÐm-~mµOma Ho$ àboIm| H$mo Cn`moJ _| bmZo H$m {ZU©` {b`m &

(A) Cn`w©º$ CÔoí` Ho$ {bE H$ånZr _wÐm-~mµOma Ho$ {Og àboI H$m à`moJ H$a gH$Vr h¡, CgH$m Zm_ ~VmVo hþE Cgo g_PmBE &

(~) Bg àboI Ho$ _mÜ`_ go H$ånZr {H$VZr Ad{Y Ho$ {bE {dÎm àmá H$a gH$Vr h¡ ?

(g) Bg àboI H$m Am¡a {H$g CÔoí` Ho$ {bE Cn`moJ {H$`m Om gH$Vm h¡ ? 4



66/1 11 P.T.O.

Mission Coach Ltd. is a large and creditworthy company manufacturing

coaches for Indian Railways. It now wants to export these coaches to

other countries and decides to invest in new hi-tech machines. Since the

investment is large, it requires long-term finance. It decides to raise

funds by issuing equity shares. The issue of equity shares involves huge

floatation cost. To meet the expenses of floatation cost, the company

decides to tap the money market.

(a) Name and explain the money-market instrument the company can

use for the above purpose.

(b) What is the duration for which the company can get funds through

this instrument ?

(c) State any other purpose for which this instrument can be used.

20. g§JR>Z H$m AW© ~VmBE & g§JR>Z à{H«$`m Ho$ MaUm| H$m C„oI H$s{OE & 5

Give the meaning of organising . State the steps in the process of

organising.

21. {nN>bo Xg dfm] go A§Obr Q>mQ>m EÝQ>aàmBgoµO _| H$m`© H$a ahr h¡ & dh H$m`© Ho$ à{V AnZo g_n©U Ho$ {bE à{gÕ h¡ & O~ Cggo d[aîR> à~ÝYH$ godm{Zd¥Îm hþAm, Vmo CgHo$ g^r gm{W`m| Zo `h gmoMm {H$ A§Obr H$s A~ nXmoÞ{V hmo OmEJr & O~ Bg Imbr nX H$mo EH$ ~mhar ì`{º$ Hw$_mar _mo{ZH$m Ûmam â {X`m J`m Vmo g^r H$mo AmíM © hþAm & BgHo$ H$maU A§Obr H$m CËgmh §J hmo J`m Am¡a CgH$m {ZînmXZ {JaZm ewê$ hmo J`m & dh A{YH$Va AZwnpñWV ahVr Wr Am¡a AnZo bú`m| H$mo àmá Zht H$a nm ahr Wr &

Hw$_mar _mo{ZH$m EH$ AÀN>r ZoVm Wr Omo AnZo AYrZñWm| H$mo Z Ho$db AmXoe XoVr Wr, A{nVw CÝh| _mJ©X{e©V Ed§ A{^ào[aV ^r H$aVr Wr & CgZo A§Obr Ho$ ì`dhma H$s Amoa Ü`mZ {X`m Am¡a _hgyg {H$`m {H$ CgHo$ {ZînmXZ _| gwYma {H$`m Om gH$Vm h¡ & CgZo A§Obr H$mo g§JR>Z Ho$ {ZU©`-gå~ÝYr {df`m| _| em{_b H$aZm àma§^ H$a {X`m Am¡a Cgo EH$ Cƒ-ñVar` g§`wº$ à~ÝY g{_{V H$m {hñgm ~Zm {X`m & A~ A§Obr H$m`m©b` _| g_` na AmVr Wr Am¡a CgHo$ {ZînmXZ _| ^r gwYma hmoZm àma§^ hmo J`m &

(A) _mo{ZH$m Ûmam {Zînm{XV à~ÝY Ho$ H$m`© H$s nhMmZ H$s{OE &

(~) à~ÝY Ho$ Cn`w©º$ H$m`© Ho$ Cg VÎd H$m Zm_ ~VmBE {OgH$s ghm`Vm go _mo{ZH$m A§Obr Ho$ ì`dhma _| gwYma H$a gH$s &

(g) Cn`w©º$ (~) _| nhMmZo JE VÎd H$s {H$Ýht VrZ {deofVmAm| H$m C„oI H$s{OE & 5



66/1 12

Anjali had been working with Tata Enterprises for the last ten years.

She was famous for her dedication towards the work. When the Manager

senior to her retired, all her colleagues thought that now Anjali would be

promoted. But to everyone s surprise the vacant post was filled by an

outsider Miss Monika . Anjali felt demoralised and her performance

started declining. She would absent herself often and could not meet her

targets.

Miss Monika was a good leader who would not only instruct her

subordinates, but also guide and inspire them. She noticed Anjali s

behaviour and felt that her performance could be improved. She started

involving Anjali in decision-making issues related to the organisation and

made her a part of a high-level joint management committee. Anjali was

now punctual to office and her performance started improving.

(a) Identify the function of management being performed by Monika.

(b) Name the element of the above function of management which

helped Monika to improve Anjali s behaviour.

(c) State any three features of the element identified in (b) above.

22. _mo{hV Jwám òbmo {gŠ`mo[aQ>r g{d©goµO {b{_Q>oS> _| H$m`©aV h¡ & dh H$ånZr Ho$ {bE

{gŠ`mo[aQ>r JmS>²©g H$s ^Vu ^r H$aVm h¡ & H$ånZr Aën-Zmo{Q>g na {d{^Þ H$ån{Z`m| H$mo {X„r

Ed§ ZmoES>m _| gwajm godmE± àXmZ H$aVr h¡ & JmS>m] H$s ^Vu AñWm`r AmYma na H$s OmVr

h¡ & Bg H$ånZr Ûmam CnbãY H$amE JE JmS>© AnZr B©_mZXmar Ed§ g_`{Zð>m Ho$ {bE OmZo

OmVo h¢ & _mo{hV Jwám AnZo Jm±d _| Aà{e{jV bmoJm| H$mo amoµOJma {XbmZo Ho$ {bE à{gÕ h¡ &

(A) òbmo {gŠ`mo[aQ>r g{d©goµO {b{_Q>oS> Ûmam à`wº$ ^Vu Ho$ òmoV H$m Zm_ ~VmBE &

(~) ^Vu Ho$ Bg òmoV Ho$ {H$gr EH$ Xmof H$m C„oI H$s{OE &

(g) nhMm{ZE {H$ _mñbmo Ho$ Amdí`H$Vm H«$_ Ho$ AZwgma H$ånZr Ûmam gwajm JmS>m] H$s {H$g Amdí`H$Vm H$s ny{V© hmo ahr h¡ &

(X) Cn`w©º$ d{U©V AdñWm Ûmam g_mO H$mo gåào{fV {H$Ýht Xmo _yë`m| H$mo nhMm{ZE & 5



66/1 13 P.T.O.

Mohit Gupta is working with Yellow Security Services Ltd. He is also

recruiting security guards for the company. The company provide

security services in Delhi and Noida at short notice to various companies.

The guards are recruited on temporary basis. The guards provided by

this company are known for their honesty and punctuality. Mohit Gupta

is well known in his village for providing employment to unskilled people.

(a) Name the source of recruitment used by Yellow Security Services

Ltd.

(b) State any one disadvantage of this source of recruitment.

(c) Identify the need of Security Guards which is being fulfilled by

the company as per Maslow s need hierarchy.

(d) Identify any two values communicated to the society in the above

stated case.

23. à~ÝY Ho$ {ZåZ{b{IV {gÕmÝVm| H$mo g_PmBE : 6

(A) {dkmZ nÕ{V, Z {H$ A±JyR>m Q>oH$ {Z`_ &

(~) AZwemgZ &

Explain the following principles of management :

(a) Science, not rule-of-thumb.

(b) Discipline.

24. A{^foH$ {b{_Q>oS> > gyVr H$n‹‹S>m| H$m CËnmXZ H$a ahr h¡ & {nN>bo H$mµ\$s dfm] go dh bJmVma AÀN>o bm^ A{O©V H$a ahr h¡ & Bg df© ^r dh n`m©á bm^ A{O©V H$aZo _| g\$b ahr h¡ & H$ånZr Ho$ nmg n`m©á amoH$‹S> Am¡a ^{dî` _| {dH$mg Ho$ AÀN>o Adga CnbãY h¢ & `h EH$ ^br-^m±{V à~pÝYV g§JR>Z h¡ VWm JwUdÎmm, amoµOJma Ho$ g_mZ Adga VWm AÀN>r nm[al{_H$ nÕ{V`m| _| {dídmg aIVm h¡ & BgHo$ ~hþV go A§eYmaH$ h¢ Omo AnZo {Zdoe na {Z`{_V Am` àmá H$aZo H$mo àmW{_H$Vm XoVo h¢ &

H$ånZr Zo AmB©.gr.AmB©.gr.AmB©. ~¢H$ go < 50 bmI H$m G$U {b`m h¡ Am¡a G$U g_Pm¡Vo Ho$ AZwgma bm^m§e ^wJVmZ Hw$N> à{V~ÝYm| Ho$ AYrZ h¡ &

H$ånZr Ho$ ~mao _| Cn`w©º$ n[aMMm© CZ {d{^Þ KQ>H$m| H$s Amoa g§Ho$V H$aVr h¡ Omo `h {ZU©` boVo h¢ {H$ H$ånZr Ûmam bm^m| H$m {H$VZm ^mJ à{VYm[aV {H$`m OmE Am¡a {H$VZm {dV[aV {H$`m OmE &

Cn`w©º$ n[aMMm© go n§{º$`m± CX²Y¥V H$aVo hþE {H$Ýht Mma KQ>H$m| H$mo nhMm{ZE Ed§ g_PmBE & 6



66/1 14

Abhishek Ltd. is manufacturing cotton clothes. It has been consistently

earning good profits for many years. This year too, it has been able to

generate enough profits. There is availability of enough cash in the

company and good prospects for growth in future. It is a well managed

oranisation and believes in quality, equal employment opportunities and

good remuneration practices. It has many shareholders who prefer to

receive a regular income from their investments.

It has taken a loan of < 50 lakhs from I.C.I.C.I. Bank and is bound by

certain restrictions on the payment of dividend according to the terms of

the loan agreement.

The above discussion about the company leads to various factors which

decide how much of the profits should be retained and how much has to

be distributed by the company.

Quoting the lines from the above discussion, identify and explain any

four such factors.

25. am{YH$m H$jm XII _| ì`mdgm{`H$ AÜ``Z H$s EH$ {dÚmWu Wr & CgHo$ {nVmOr EH$ {H$gmZ

Wo Omo Mmdb H$s {d{^Þ {H$ñ_| CJmVo Wo VWm Mmdb CËnmXZ Ho$ {d{^Þ njm| _| nyU© ê$n go

{ZnwU Wo & dh gaH$ma Ûmam Mmdb H$s IoVr na EH$ Amapå^H$-n[a`moOZm Ho$ {bE ^r MwZo

JE & ì`mdgm{`H$ AÜ``Z Ho$ EH$ n[a`moOZm-H$m`© Ho$ ê$n _| CgZo Cƒ JwUdÎmm dmbo Mmdbm| H$m C{MV _yë` na {dnUZ H$aZo H$s gå^mì`Vm na AÜ``Z H$aZo H$m {ZU©`

{b`m & CgHo$ {nVmOr Zo Cgo `h gwPmd {X`m {H$ J«mhH$m| Ho$ {dMmam| Am¡a _Vm| H$mo EH${ÌV

H$aZo Ho$ {bE dh B§Q>aZoQ> H$m Cn`moJ H$ao & CgZo nm`m {H$ n¡H$ {H$E hþE O¡{dH$ Mmdbm| H$s

~hþV A{YH$ _m±J Wr & Cgo nVm Wm {H$ Mmdb H$s pñW{V _| H$moB© nyd©-{ZYm©[aV {d{eï>Vm

Zht hmoVr, {OgHo$ H$maU CËnmX _| EH$ê$nVm àmá H$aZm H${R>Z hmoVm h¡ & AnZo CËnmX H$mo

à{V`mo{J`m| go {^Þ H$aZo Ho$ {bE CgZo Cgo _mbm~ar Am°J£{ZH$ Mmdb H$m Zm_ {X`m Am¡a

Cgo CZH$s JwUdÎmm Ho$ AmYma na — nmonwba, Šbm{gH$ VWm gwàr_ Zm_H$ VrZ {d{^Þ {H$ñ_m| _| ~m±Q> {X`m & CgZo `h _hgyg {H$`m {H$ ò Zm_ Cgo CËnmX-{dôXrH$aU _| ghm`Vm

H$a|Jo &

Cn`w©º$ AZwÀN>oX Ho$ g§X^© _| {dnUZ Ho$ VrZ H$m`m] H$mo g_PmBE & 6



66/1 15 P.T.O.

Radhika was a student of Business Studies of Class XII. Her father was a

farmer who grew different varities of rice and was well-versed about

various aspects of rice cultivation. He was also selected by the

government for a pilot-project on rice cultivation. As a project-work in

Business Studies she decided to study the feasibility of marketing good

quality rice at a reasonable price. Her father suggested her to use

internet to gather customers views and opinions. She found that there

was a huge demand for packaged organic rice. She knew that there were

no pre-determined specifications in case of rice because of which it would

be difficult to achieve uniformity in the output. To differentiate the

product from its competitors, she gave it the name of Malabari Organic

Rice and classified it into three different varieties namely — Popular,

Classic and Supreme, based on the quality. She felt that these names

would help her in product differentiation.

Explain the three functions of marketing, with reference to the above

paragraph.



1

Senior School Certificate Examination March -----2014-15

Marking Scheme---Business Studies (Outside Delhi) 66/1, 66/2, 66/3.

General Instructions:

1. The marking scheme carries only suggested value points for the answer. These are only guidelines and do not

constitute the complete answer. The students can have their own expression and if the expression is correct, marks be

awarded accordingly.

2. Evaluation is to be done as per instructions provided in the marking scheme.

3. If a question has parts, please award marks on the right hand side for each part. Marks awarded for different parts of

the question should then be totalled up and encircled in the left hand margin.

4. If a question does not have parts, marks be awarded in the left hand margin.

5. If a candidate has attempted a question twice, marks should be given in the question attempted first and the question

attempted later should be ignored with the comment ‘Extra Attempt’.

6. In a question, if two features/ characteristics/ points are asked but an examinee writes more than two features/

characteristics/ points, say, five, of which first is correct, second is incorrect, the first two should be assessed and the

remaining should be ignored.

7. The examiners should acquaint themselves with the instructions given in the Guidelines for Spot Evaluation before

starting the actual evaluation.

8. Every examiner should stay upto sufficiently reasonable time normally 5-6 hours everyday and evaluate 20-25

answer books and should devote minimum 15-20 minutes to evaluate each answer book.

9. Every examiner should acquaint himself/ herself with the marking schemes of all the sets.

10. It is expected that the marking scheme should be followed objectively to ensure quality evaluation. For instance, if

an examinee scores 30 marks, then the marks should not be inflated to 33 simply to pass him/ her.

11. Marks should be awarded keeping in view the total marks of a particular question and not the total marks of the

question paper. For example, if one mark is given to a 3 marks question even if nothing is correct, then that one mark

constitutes 33% of the total marks for this answer.

12. The examiner shall also have to certify in the answer book that they have evaluated the answer book strictly in

accordance with the value points given in the marking scheme and correct set of question papers.

13. In compliance to the judgement of Hon’ble Supreme Court of India, Board has decided to provide photocopy of the

answer book(s) to the candidates who will apply for it along with the requisite fee from 2012 examination. Therefore, it

is all the more important that the evaluation is done strictly as per the value points given in the marking scheme so that

the Board could be in a position to defend the evaluation in any forum.

14. While evaluating the answer scripts, if the answer is found to be totally incorrect, it should be marked as (x) and

awarded zero (0) marks.

15. A full scale of marks 0-80 has to be used. Please do not hesitate to award full marks if the answer deserves it.

Similarly, wherever an examinee writes an answer upto the mark, his/ her marks should not be deducted unnecessarily.

Strictly Confidential: (For Internal and Restricted Use Only



2

66/1

MARKING SCHEME-2014-15

BUSINESS STUDIES

OUTSIDE DELHI-66/1-2-3

EXPECTED ANSWERS / VALUE POINTS

DISTRI-

BUTION

OF MARKS

1 Q. What is meant by ‘Business Environment’?

Ans. Business environment means the sum total of all individuals,

institutions and other forces that are outside the control of a business

enterprise but that may affect its performance.

1 mark

2 Q. Explain, how management helps in the development of society.

Ans. Management helps in the development of society

by: (Any two)

providing good quality products and services,

creating employment

adopting new technology and

leading the path towards growth and development.

½ x 2

=

1 mark

3 Q. Give the meaning of ‘Objectives’ as a type of plan.

Ans. Objectives are the ends which the management seeks to achieve

within a given time period.

(or any other correct meaning)

1 mark

4

Q. ‘Himalaya Ltd.’, is engaged in manufacturing of washing

machines. The target of the organization is to manufacture 500

washing machines in a day. There is an occupational specialization in

the organization which promotes efficiency of employees. There is no

duplication of efforts in such type of organization structure.

Identify the type of organization structure described above.

Ans. Functional Structure.

1 mark

5 Q. How does ‘cost of equity’ affect the choice of capital structure of a

company? Explain.

Ans. Use of higher debt increases the cost of equity as the financial risk

faced by the equity shareholders increases; debt can therefore be used only

upto a level.

1 mark

6 Q. ‘Bharat Express’ specializes in Courier Services. Its ‘wide range of

express package and parcel services’ help business firms to make sure

that the goods are made available to the customers at the right place

and at the right time.


‘Bharat Express’ will be high or low.

½ mark for

identification

+

½ mark for reason

=

½ + ½



3

Ans. Low, as it is a service industry, which usually do not have to

maintain inventory.

=

1 mark

7 Q. ‘Maruti Vega Ltd.’ entered into the market with coloured television

and have now introduced products like audio systems, air-

conditioners, washing machines, etc. The company is not only offering

the products but also handling complaints and offering after-sales

services.


Ans. Product/ Product mix.

1 mark

8 Q. Himanshu purchased a new car from ‘Galaxy Motors’ for Rs. 25

lakhs. He was offered free insurance for the first year and three free

servicing to be availed after the car had covered 5,000 km, 10,000 km

and 15,000 km respectively. When Himanshu took the car for the first

free servicing, he was told that the car was not new and first service

had already been availed on this car. He felt cheated and filed a

complaint in the State Commission. Being not satisfied with the

decision of the State Commission, after two months he decided to file

an appeal against it.

Can Himanshu appeal against the decision of the State Commission?


Ans. No, Himanshu cannot appeal now as the appeal has to be filed within

30 days of passing of the order by the State Commission.

½ + ½

=

1 mark

9 Q. What is meant by ‘Formal Organisation’? State its any two

advantages.

Ans. Formal organisation refers to the organisation structure which is

designed by the management to accomplish its objectives.

Advantages: (Any two)

(a) It is easier to fix responsibility since mutual relationships are clearly

defined.

(b) It avoids duplication of effort since there is no ambiguity in the role

that each member has to play.

(c) It maintains unity of command through an established chain of

command.

(d) It leads to accomplishment of goals by providing a framework for the

operations to be performed.

(e) It provides stability to the organisation because there are specific rules

to guide behaviour of employees.

1 mark for

the

meaning

+

1 mark for each

statement

=

1 x 2

=

2 marks

=

1+2

=

3 marks



4

(If an examinee has given only the headings, ½ mark for each heading

should be awarded)

10 Q. How do the ‘Company-related factors’ affect the choice of channels

of distribution? Explain.

Ans. Company related factors include:

(i) Financial strength of the company:

If the financial strength of the company is good, it would prefer shorter

channels.

(ii) Degree of control over channel members:

If company’s management wants greater control over channel members,

shorter channels may be used.

(If an examinee has not given the headings as above but has given the

correct explanation, full credit should be given)

½ mark for the

heading

+

1 mark for each

explanation

=

1 ½ x 2

=

3 marks

11 Q. ‘A.S. Ltd.’ is a large company engaged in assembly of air-

conditioners. Recently the company had conducted the ‘Time’ and

‘Motion’ study and concluded that on an average a worker can

assemble ten air-conditioners in a day. The target volume of the

company in a day is assembling of 1,000 units of air-conditioners.

The company is providing attractive allowances to reduce labour

turnover and absenteeism. All the workers are happy. Even then the

assembly of air-conditioners 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.




Ans. (a) Controlling.

(b) Steps discussed in the above paragraph are:

(i) Setting performance standards

‘Recently the company had conducted the ‘Time’ ….can assemble ten

air-conditioners in a day’.

OR

‘The target volume of the company in a day is assembling of 1,000

units of air-conditioners’.

Setting performance standards which are the criteria against which the

actual performance would be measured.

(ii) Measurement of actual performance

1 mark for

identification

+

½ mark for stating

each step

=

½ x 4

=

2 marks

=

1+2

=

3 marks



5

‘Even then the assembly of air-conditioners per day is 800 units only’.

Measurement of actual performance with the standards in an objective and

reliable manner.

(iii) Comparing actual performance with the standards

‘… the company compared actual performance of each worker’

Comparing actual performance with the standards to find out the deviation,

if any.

(iv) Analysing deviations

observed through C.C.T.V. that some of the workers were busy in

gossiping.

Analysing deviations for their causes.

(If an examinee has given the steps of the process not discussed above,

½ mark may be deducted)

(FULL CREDIT BE GIVEN FOR QUOTING THE LINE OR

GIVING THE STATEMENT)

12 Q. ‘The Stock Exchange performs many vital functions in today’s

commercial world.’ Explain any three such functions.

Ans. Vital functions performed by the Stock Exchange in today’s

commercial world are: (Any three)

(i) Provides liquidity and marketability to existing securities.

(ii) Helps in determining the price of securities.

(iii) Ensures safety of transactions.

(iv) Contributes to economic growth.

(v) Helps in spreading equity cult.

(vi) Provides scope for speculation.

(if an examinee has not given the headings as above but has given the


½ mark for the

heading

+

½ mark for

the

explanation

=

1 x 3

=

3 marks

13 Q. Jaideep recently joined as the Managing Director of ‘Tivori Ltd.’,

an apparel designing company. He observed that the company had a

number of experienced fashion designers on its payroll. They

1 mark for

identifying the

barrier



6

regularly offered useful suggestions which were neither appreciated

nor rewarded by the company. Instead the company outsourced its

services to some renowned fashion designers and paid them a good

compensation for their services. Because of this the employees felt

disheartened and stopped giving useful suggestions.




Ans. (a) Organisational policy

(b) Organisational barrier which arises from organisational structure,

authority relationships, rules and regulations etc.

(c) Other communication barriers of the same category are: (Any one)

(i) Rules and regulations

(ii) Status

(iii) Complexity in organisational structure.

(iv) Organisational facilities.

(If an examinee has not given the headings, no marks should be

deducted)

+

½ mark for naming

the category of

barrier

+

½ mark for stating

the category of

the barrier

+

(½ mark for naming

another barrier

+

½ mark

for its explanation)

=

1+1+1

=

3marks

14 Q. What is meant by ‘Management’? State any three objectives of

management.

Ans. Management is the process of getting things done with the aim of

achieving goals effectively and efficiently.

(Or any other correct meaning)

Objectives of management:

(i) Organisational objectives which include survival, profit and growth.

(ii) Social objectives which involve creation of benefit for the society.

(iii) Personal objectives which aim to satisfy the needs of the employees

working in the organisation.

(If an examinee has given only the heading, ½ mark for each heading

should be awarded)

1 mark for the

meaning

+

1 mark for each

statement

=

1 x 3

=

3 marks

=

1+3

=

4 marks

15 Q. Explain any four points of importance of ‘consumer protection’

from the point of view of business.

Ans. Importance of ‘consumer protection’ from the point of view of

business: (Any four)

(i) Long-term interests of business.

(ii) Business uses society’s resources.

(iii) Social Responsibility.

½ mark for the

heading

+

½ mark for

each

explanation



7

(iv) Moral Justification.

(v) Government Intervention.



= 1 x 4

=

4 marks

16 Q. Neeraj Gupta started a company ‘YoYo Ltd.’ with ten employees,

to assemble economical computers for the Indian rural market. The

company did very well, in its initial years. As the product was good

and marketed well, the demand went up. To increase production the

company decided to recruit additional employees. Neeraj Gupta, who

was earlier taking all decisions for the company, had to selectively

disperse the authority. He believed that people are competent,

capable and resourceful and can assume responsibility for effective

implementation of their decisions. This paid off and the company was

not only able to increase its production but also expanded its product

range with different features.




Ans. (a) Decentralisation.

(b) Importance of decentralisation: (Any three)

(i) Develops initiative among subordinates.

(ii) Develops managerial talent for the future.

(iii) Quick decision making.

(iv) Relief to top management.

(v) Facilitates growth.

(vi) Better control.



(IF THE CONCEPT IS WRONGLY IDENTIFIED BUT THE POINTS

OF IMPORTANCE ARE CORRECT, DUE CREDIT BE GIVEN)

1 mark for

identifying the

concept

+

(½ mark for the

heading

+

½ mark


=

1 x 3

=

3 marks

=

1+3

=

4 marks

17 Q. The workers of ‘Gargya Ltd.’ are unable to work on new

computerized machines imported by the company to fulfil the

increased demand. Therefore, the workers are seeking extra guidance

from the supervisor and the supervisor is overburdened with the

frequent calls of workers.



Also state any three benefits that the workers will derive by the

decision of the supervisor.

Ans. Training of employees/ Vestibule training/ On the job training.

Benefits the workers will derive by the decision of the supervisor: (Any

1 mark

+



8

three)

(a) It helps in promotion and career growth due to improved skills and

knowledge.

(b) It helps them to earn more due to improved performance.

(c) It reduces accidents as the employees are more efficient to handle

machines.

(d) It increases the morale of the employees as the employees are more

satisfied.


should be awarded)

1 mark for each

statement

=

1 x 3

=

3 marks

=

1+3

=

4 marks

18 Q. Beni, after completing her MBA, took up a job with a multinational

company named ‘Fortio’. The company was paying good salary and

perks to its employees. The wages were within the paying capacity of

the company that provided the employees a reasonable standard of

living. The company also had a good work-culture and the behaviour

of superiors was very good towards their subordinates. Beni was very

happy in this organization, but due to long working hours she did not

have time to cook her meals. She had to depend on outside food, which

was deteriorating her health.

She observed that this problem was faced by many of her colleagues,

not only in her company but also in many other companies. This was

because of increase in the number of working women and non-

availability of hygienic home-cooked food. She identified this as a

great opportunity and decided to give up her job to supply packaged

home-cooked food to office goers at a reasonable price. At the end of

the day she was also distributing the left-over food in the nearby

night-shelters.


above.

(b) State the principle of management being followed by ‘Fortio’.

(c) Identify any two values being communicated by the company to the

society in the above case.

Ans. (a) Social environment which includes social forces like customs and

traditions, values, social trends etc.

‘This was because of increase in the number of working women and non-

availability of hygienic home-cooked food’.

(b) Remuneration of employees states that the overall pay and

compensation should be fair to both employees and the organisation.

‘The company was paying good salary and perks to its employees. The

wages were within the paying capacity … standard of living’.

(c) Values being communicated by the company to the society are: (Any

½ mark for

identifying

the

dimension

+

½ mark for either

quoting the line

OR

stating the

dimension

+

½ mark for

identifying

the

principle

+

½ mark for

either quoting the

line

OR

stating the principle

+

1 mark for each

value

=

(1 x 2)

=



9

two)

(i) Good work culture.

(ii) Good behaviour in human interaction.

(iii) Concern for the employees.

(iv) Respect for law.

(or any other correct value)

2 marks

=

1+1+2

=

4 marks

19 Q. ‘Mission Coach Ltd.’ is a large and creditworthy company

manufacturing coaches for Indian Railways. It now wants to export

these coaches to other countries and decides to invest in new hi-tech

machines. Since the investment is large, it requires long-term finance.

It decides to raise funds by issuing equity shares. The issue of equity

shares involves huge floatation cost. To meet the expenses of

floatation cost, the company decides to tap the money market.



(b) What is the duration for which the company can get funds through

this instrument?


Ans. (a) Commercial paper.

It is an instrument issued by large and creditworthy companies to raise

short term funds at lower rates of interest than the market rates. It is an

unsecured, negotiable promissory note with a fixed maturity period.

(b) 15 days to one year.

(c) It can also be used for seasonal and working capital needs.

1 mark for naming

the instrument

+

1 mark for its

explanation

+

1 mark for duration

+

1 mark for any

other purpose

=

1+1+1+1

=

4 marks

20 Q. Give the meaning of ‘organising’. State the steps in the process of

organising.

Ans. Organising is the process of defining and grouping the activities of

the enterprise and establishing authority relationships among them.

OR

Organising is the process of identifying and grouping the work to be

performed, defining and delegating responsibility and authority and

establishing relationships for the purpose of accomplishing objectives.

Steps in the process of organising:

(i) Identifying and dividing the work into manageable activities so that

duplication can be avoided.

(ii) Departmentalisation/ departmentation when activities of a similar

nature are grouped together.

(iii) Assignment of duties to job positions.

(iv) Establishing reporting relationships so that each individual knows who

he has to take orders from and to whom he is accountable.

1 mark for the

meaning

+

1 mark for each

statement

=

1 x 4

4 marks

=

1+4

=

5 marks



10

(If an examinee has given only the headings, ½ mark for each heading

should be awarded)

21 Q. Anjali had been working with ‘Tata Enterprises’ for the last ten

years. She was famous for her dedication towards the work. When

the Manager senior to her retired, all her colleagues thought that now

Anjali would be promoted. But to everyone’s surprise the vacant post

was filled by an outsider ‘Miss Monika’. Anjali felt demoralized and

her performance started declining. She would absent herself often

and could not meet her targets.


subordinates, but also guide and inspire them. She noticed Anjali’s

behaviour and felt that her performance could be improved. She

started involving Anjali in decision-making issues related to the

organization and made her a part of a high-level joint management

committee. Anjali was now punctual to office and her performance

started improving.



helped Monika to improve Anjali’s behaviour.


Ans. (a) Directing.

(b) Motivation.

(c) Features of motivation: (Any three)

(a) It is an internal feeling.

(b) It produces goal directed behaviour.

(c) It can be positive or negative.

(d) It is a complex process.

(If an examinee has identified the element in part (b) as non financial

incentive, full credit is to be given)

1 mark for

identifying the

function

+

1 mark for

identifying the

element

=

+

1 mark for each

feature

=

(1 x 3)

=

3 marks

=

1+1+3

=

5 marks

22 Q. Mohit Gupta is working with ‘Yellow Security Services Ltd.’ He is

also recruiting security guards for the company. The company

provides security services in Delhi and Noida at short notice to

various companies. The guards are recruited on temporary basis.

The guards provided by this company are known for their honesty

and punctuality. Mohit Gupta is well known in his village for

providing employment to unskilled people.

(a) Name the source of recruitment used by ‘Yellow Security Services

Ltd.’


(c) Identify the need of ‘Security Guards’ which is being fulfilled by

the company as per Maslow’s need hierarchy.


stated case.

1 mark for naming



11

Ans. (a) External source of recruitment/ Labour Contractor.

(b) Disadvantages of external source of recruitment: (Any one)

(i) It may lead to dissatisfaction among existing employees as they may

feel that their chances of promotion are reduced.

(ii) It is a lengthy process as the vacancies have to be notified and

applications received before selection.

(iii) It is a costly process as a lot of money is spent on advertisement and

processing of applications.


should be awarded)

(c) Basic physiological needs.

(d) Values communicated to the society are: (Any two)

(i) Creating employment opportunities.

(ii) Ethical behaviour.

(iii) Respect for time.


the source of

recruitment

+

1 mark for stating

one disadvantage

+

1 mark for

identifying the need

+

1 mark for

identifying each

value

=

1 x 2

=

2 marks

=

1+1+1+2

=

5 marks

23 Q. Explain the following principles of management:

(a) Science, not rule-of-thumb.

(b) Discipline.

Ans. (a) Science not rule of thumb

It states that there was only one best method to maximise efficiency.

This method can be developed through scientific study and analysis

of each element of a job and should substitute ‘Rule of Thumb’.

This standard method then should be followed throughout the

organisation.

(b) Discipline

It is the obedience to organizational rules and employment agreement

which are necessary for the working of the organization.

It requires good superiors at all levels, clear and fair agreement and

judicious application of penalties.

Workers and management both should honour their commitments

towards one another without prejudice.

1 x 3

=

3 marks

+

1 x 3

=

3 marks

=

3+3

=

6 marks

24 Q. ‘Abhishek Ltd.’ is manufacturing cotton clothes. It has been

consistently earning good profits for many years. This year too, it has

been able to generate enough profits. There is availability of enough

cash in the company and good prospects for growth in future. It is a

well managed organization and believes in quality, equal employment

opportunities and good remuneration practices. It has many



12

shareholders who prefer to receive a regular income from their

investments.

It has taken a loan of Rs. 50 lakhs from I.C.I.C.I. Bank and is bound

by certain restrictions on the payment of dividend according to the

terms of the loan agreement.

The above discussion about the company leads to various factors

which decide how much profits should be retained and how much has

to be distributed by the company.


four such factors.

Ans. Factors affecting dividend decision: (Any four)

(i) Stability of earnings

‘It has been consistently earning good profits for many years’.

Stability of earnings affects dividend decision as a company having stable

earnings is in a position to declare higher dividends.

(ii) Cash Flow position

‘There is availability of enough cash in the company’.

A good cash flow position is necessary for declaration of dividend.

(iii) Growth Prospects

‘Good prospects for growth in the future’.

If a company has good growth opportunities, it pays out less dividend.

(iv) Shareholders’ preference

‘It has many shareholders who prefer to receive regular income from their

investments’.

Shareholder’s preference is kept in mind by the management before

declaring dividends.

(v) Contractual constraints

‘It has taken a loan of Rs.50 Lakhs from I.C.I.C.I. and ….agreement’

While taking dividend decision, companies keep in mind the restrictions

imposed by the lenders in the loan agreement.

½ mark for

identifying the

factor

+

½ mark for quoting

the line

+

½ mark for

explanation

=

1 ½ x 4

=

6 marks

25 Q. Radhika was a student of Business Studies of Class XII. Her father

was a farmer who grew different varieties of rice and was well-versed

about various aspects of rice cultivation. He was also selected by the



13

government for a pilot-project on rice cultivation. As a project-work

in Business Studies she decided to study the feasibility of marketing

good quality rice at a reasonable price. Her father suggested her to

use internet to gather customers’ views and opinions. She found that

there was a huge demand for packaged organic rice. She knew that

there were no pre-determined specifications in case of rice because of

which it would be difficult to achieve uniformity in the output. To

differentiate the product from its competitors, she gave it the name of

‘Malabari Organic Rice’ and classified it into three different varieties

namely – Popular, Classic and Supreme, based on the quality. She felt

that these names would help her in product differentiation.


paragraph.

Ans. Functions of marketing, with reference to the above paragraph are:

(i) Gathering and analysing market information.

‘…use internet to gather customers’ views and opinions.’

(ii) Standardisation and Grading/ Grading.

‘…no pre-determined specifications in case of rice because of which it

would be difficult to achieve uniformity in the output.’

OR

‘…classified it into three different varieties namely – Popular, Classic and

Supreme, based on the quality’.

(iii) Branding.

‘To differentiate the product from its competitors, she gave it the name of

‘Malabari Organic Rice’.’

OR

She felt that these names would help her in product differentiation.

(IF AN EXAMINEE HAS IDENTIFED THE FUNCTIONS

CORRECTLY AND HAS GIVEN THE EXPLANATION WITHOUT

QUOTING THE LINES FROM THE ABOVE PARA, FULL

CREDIT IS TO BE GIVEN)

1 mark for naming

the function

+

½ mark for quoting

the line

+

½ mark

for its explanation

=

2 x 3

=

6 marks



14

66/2


BUSINESS STUDIES



DISTRI-

BUTION

OF MARKS

1 Q. ‘Bharat Express’ specializes in Courier Services. Its ‘wide range

of express package and parcel services’ help business firms to make

sure that the goods are made available to the customers at the right

place and at the right time.




maintain inventory.

½ mark for

identification

+

½ mark for

reason

=

½ + ½

=

1 mark

2 Q. ‘Maruti Vega Ltd.’ entered into the market with coloured

television and have now introduced products like audio systems, air-

conditioners, washing machines, etc. The company is not only

offering the products but also handling complaints and offering

after-sales services.



1 mark


lakhs. He was offered free insurance for the first year and three

free servicing to be availed after the car had covered 5,000 km,

10,000 km and 15,000 km respectively. When Himanshu took the

car for the first free servicing, he was told that the car was not new

and first service had already been availed on this car. He felt

cheated and filed a complaint in the State Commission. Being not

satisfied with the decision of the State Commission, after two

months he decided to file an appeal against it.

Can Himanshu appeal against the decision of the State

Commission?


Ans. No, Himanshu cannot appeal now as the appeal has to be filed

within 30 days of passing of the order by the State Commission.

½ + ½

=

1 mark



by: (Any two)


creating employment

½ x 2

=



15



1 mark

5 Q. ‘Himalaya Ltd.’, is engaged in manufacturing of washing


washing machines in a day. There is an occupational specialization

in the organization which promotes efficiency of employees. There

is no duplication of efforts in such type of organization structure.



1 mark

6 Q. How does ‘cost of equity’ affect the choice of capital structure of

a company? Explain.


faced by the equity shareholders increases; debt can therefore be used

only upto a level.

1 mark

7 Q. What is meant by ‘liberalisation’?

Ans. Liberalisation means removal of unnecessary controls and

restrictions on business.

1 mark

8 Q. Give the meaning of ‘Policy’ as a type of plan.

Ans. Policy is a general guideline which brings uniformity in decision

making for achievement of predetermined objectives

.

1 mark

9 Q. What is meant by ‘Informal Organisation’? State its any two

advantages.

Ans. Informal organisation is a network of personal and social relations

within the formal organisation arising spontaneously as people associate

with one another.

Advantages of informal organisation: (Any two)

(i) It leads to faster spread of information as well as a quick feedback.

(ii) It fulfills the social needs of the members.

(iii) It contributes towards fulfillment of organisational objectives by

compensating for inadequacies in the formal organisation.

(If an examinee has given only the heading, ½ mark for each

heading should be awarded)

1 mark for

the

meaning

+

1 mark for each

statement

=

1 x 2

=

2 marks

=

1+2

=

3 marks



½ mark for the heading



16









(if an examinee has not given the headings as above but has given

the correct explanation, full credit should be given)

+

½ mark for

the

explanation

=

1 x 3

=

3 marks

11 Q. Jaideep recently joined as the Managing Director of ‘Tivori

Ltd.’, an apparel designing company. He observed that the

company had a number of experienced fashion designers on its

payroll. They regularly offered useful suggestions which were

neither appreciated nor rewarded by the company. Instead the

company outsourced its services to some renowned fashion

designers and paid them a good compensation for their services.

Because of this the employees felt disheartened and stopped giving

useful suggestions.









(ii) Status




deducted)

1 mark for identifying

the barrier

+

½ mark for naming

the category of barrier

+

½ mark for stating the

category of

the barrier

+

(½ mark for naming

another barrier

+

½ mark


=

1+1+1

=

3marks

12 Q. How do the ‘Company-related factors’ affect the choice of

channels of distribution? Explain.




½ mark for the

heading

+

1 mark for each

explanation

=



17

channels.




(If an examinee has not given the headings as above but has given


1 ½ x 2

=

3 marks







turnover and absenteeism. All the workers are happy. Even then

the assembly of air-conditioners 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.


(b) State those steps in the process of the function identified which

are discussed in the above paragraph.




‘Recently the company had conducted the ‘Time’ ….can assemble

ten air-conditioners in a day’.

OR






‘Even then the assembly of air-conditioners per day is 800 units

only’.

Measurement of actual performance with the standards in an objective

and reliable manner.



1 mark for

identification

+

½ mark for stating

each step

=

½ x 4

=

2 marks

=

1+2

=

3 marks



18

Comparing actual performance with the standards to find out the

deviation, if any.



gossiping.


(If an examinee has given the steps of the process not discussed

above, ½ mark may be deducted)



14 Q. State any four features of principles of management.

Ans. Ans. Features of principles of management: (Any four)

(i) The principles of management apply to all types of organisations, at

all levels and at all times.

(ii) The principles are guidelines to action but do not provide

readymade, straitjacket solutions to all managerial problems.

(iii) The principles of management are derived by observation,

experimentation as well as personal experience of managers.

(iv) They are not rigid but are flexible and can be modified by the

manager when the situation so demands.

(v) Management principles aim at influencing behaviour of human

beings.

(vi) The principles of management establish cause and effect

relationship so that they can be used in similar situations in a large

number of cases.

(vii) The application of principles of management is contingent or

dependent upon the prevailing situation at a particular point of time.



1 mark for each

statement

=

1 x 4

=

4 marks

15 Q. Explain the concept of ‘consumer protection’ and any three

points of importance from the point of view of consumers.

Ans. Consumer protection means protection of consumers from

unscrupulous, exploitative and unfair trade practices.

Importance of Consumer protection for consumers is due to:

1 mark for concept

+

½ mark for the

heading

+

½ mark for the

explanation



19

(i) Consumer Ignorance.

(ii) Unorganized consumers.

(iii) Widespread exploitation of consumers.

(If an examinee has not given the headings as above but has given

the correct explanations, full credit should be given)

=

1 x 3

=

3 marks

=

1+3

=

4 marks




machines. Since the investment is large, it requires long-term

finance. It decides to raise funds by issuing equity shares. The issue

of equity shares involves huge floatation cost. To meet the expenses

of floatation cost, the company decides to tap the money market.

(a) Name and explain the money-market instrument the company

can use for the above purpose.

(b) What is the duration for which the company can get funds

through this instrument?








1 mark for naming

the instrument

+

1 mark for its

explanation

+

1 mark for

duration

+

1 mark for

any other purpose

=

1+1+1+1

=

4 marks

17 Q. Beni, after completing her MBA, took up a job with a

multinational company named ‘Fortio’. The company was paying

good salary and perks to its employees. The wages were within the

paying capacity of the company that provided the employees a

reasonable standard of living. The company also had a good work-

culture and the behaviour of superiors was very good towards their

subordinates. Beni was very happy in this organization, but due to

long working hours she did not have time to cook her meals. She

had to depend on outside food, which was deteriorating her health.

She observed that this problem was faced by many of her

colleagues, not only in her company but also in many other

companies. This was because of increase in the number of working

women and non-availability of hygienic home-cooked food. She

identified this as a great opportunity and decided to give up her job

to supply packaged home-cooked food to office goers at a

reasonable price. At the end of the day she was also distributing the

left-over food in the nearby night-shelters.


above.


½ mark for

identifying

the

dimension

+

½ mark for either

quoting the line

OR



20

(c) Identify any two values being communicated by the company to

the society in the above case.

Ans. (a) Social environment which includes social forces like customs

and traditions, values, social trends etc.

‘This was because of increase in the number of working women and

non-availability of hygienic home-cooked food’.






two)






stating the dimension

+

½ mark for

identifying

the

principle

+

½ mark for

either quoting the line

OR


+

1 mark for each value

=

(1 x 2)

=

2 marks

=

1+1+2

=

4 marks



increased demand. Therefore, the workers are seeking extra

guidance from the supervisor and the supervisor is overburdened

with the frequent calls of workers.

Suggest how the supervisor, by increasing the skills and knowledge

of workers, can make them handle their work independently.





three)


knowledge.



machines.


satisfied.


1 mark

+

1 mark for each

statement

=

1 x 3

=

3 marks

=

1+3

=

4 marks



21


19 Q. Neeraj Gupta started a company ‘YoYo Ltd.’ with ten

employees, to assemble economical computers for the Indian rural

market. The company did very well, in its initial years. As the

product was good and marketed well, the demand went up. To

increase production the company decided to recruit additional

employees. Neeraj Gupta, who was earlier taking all decisions for

the company, had to selectively disperse the authority. He believed

that people are competent, capable and resourceful and can assume

responsibility for effective implementation of their decisions. This

paid off and the company was not only able to increase its

production but also expanded its product range with different

features.

(a) Identify the concept used by Neeraj Gupta through which he

was able to steer his company to greater heights.










(if an examinee has not given the headings as above but has given





the concept

+

(½ mark for the

heading

+

½ mark


=

1 x 3

=

3 marks

=

1+3

=

4 marks

20 Q. What is meant by ‘Delegation’? State any four points which

highlight the importance of delegation in an organization.

Ans. Delegation refers to granting of authority to subordinates to

operate within prescribed limits.

Importance of delegation of authority: (Any four)

(i) It helps in effective management as the managers get more time to

concentrate on important matters.

(ii) It helps in development of employees as the employees get more

opportunities to utilize their talent.

(iii) It helps to motivate employees as the employees feel encouraged

and try to improve their performance further.

1 mark for the meaning

+

1 mark for each

statement

=

1 x 4

=

4 marks

=



22

(iv) It facilitates growth by providing a ready workforce to take up

leading positions in new ventures.

(v) It establishes a management hierarchy through clear superior

subordinate relationships.

(vi) It helps in better co-ordination by avoiding overlapping of duties.



1+4

=

5 marks

21 Q. Mohit Gupta is working with ‘Yellow Security Services Ltd.’ He

is also recruiting security guards for the company. The company






(a) Name the source of recruitment used by ‘Yellow Security

Services Ltd.’




(d) Identify any two values communicated to the society in the

above stated case.







(iii) It is a costly process as a lot of money is spent on advertisement

and processing of applications.









1 mark for naming the

source of recruitment

+

1 mark for stating one

disadvantage

+


the need

+


each value

=

1 x 2

=

2 marks

=

1+1+1+2

=

5 marks



23



the Manager senior to her retired, all her colleagues thought that

now Anjali would be promoted. But to everyone’s surprise the

vacant post was filled by an outsider ‘Miss Monika’. Anjali felt

demoralized and her performance started declining. She would

absent herself often and could not meet her targets.







started improving.

(a) Identify the function of management being performed by

Monika.




Ans. (a) Directing.

(b) Motivation.






(If an examinee has identified the element in part (b) as non

financial incentive, full credit is to be given)


the function

+


the element

=

+

1 mark for each feature

=

(1 x 3)

=

3 marks

=

1+1+3

=

5 marks


(a) Scalar Chain.

(b) Harmony, not discord.

Ans. (a) Scalar chain:

Meaning

The chain of authority and communication that runs from top to bottom

and is followed by both the managers and the subordinates is called

scalar chain.

• This chain should not be violated in the normal course of formal

communication.

• In case of any emergency, a shorter route named gang plank may

be used to avoid delay in communication.

• It facilitates smooth flow of communication and unity of

1 x 3

=

3 marks



24

command in the organisation.

(Any two points from the above points along with the meaning)

(If an examinee has explained the principle with the help of a

diagram in addition to the meaning, full credit be given)

(b) Harmony Not Discord

The principle emphasises that there should be complete harmony

between the management and the workers.

This requires ‘Mental revolution’ on the part of both management and

workers. Both management and the workers should transform their

thinking.

Management should share gains of the company if any with the

workers and workers should work hard and be wiling to embrace

change for the good of the company.

1 x 3

=

3 marks

=

3+3

=

6 marks

24 Q. Radhika was a student of Business Studies of Class XII. Her

father was a farmer who grew different varieties of rice and was

well-versed about various aspects of rice cultivation. He was also

selected by the government for a pilot-project on rice cultivation.

As a project-work in Business Studies she decided to study the

feasibility of marketing good quality rice at a reasonable price. Her

father suggested her to use internet to gather customers’ views and

opinions. She found that there was a huge demand for packaged

organic rice. She knew that there were no pre-determined

specifications in case of rice because of which it would be difficult to

achieve uniformity in the output. To differentiate the product from

its competitors, she gave it the name of ‘Malabari Organic Rice’

and classified it into three different varieties namely – Popular,

Classic and Supreme, based on the quality. She felt that these

names would help her in product differentiation.

Explain the three functions of marketing, with reference to the

above paragraph.







OR

‘…classified it into three different varieties namely – Popular, Classic

and Supreme, based on the quality’.

1 mark for naming the

function

+

½ mark for quoting

the line

+

½ mark



25

(iii) Branding.

‘To differentiate the product from its competitors, she gave it the name

of ‘Malabari Organic Rice’.’

OR



CORRECTLY AND HAS GIVEN THE EXPLANATION

WITHOUT QUOTING THE LINES FROM THE ABOVE PARA,

FULL CREDIT IS TO BE GIVEN)

for its explanation

=

2 x 3

=

6 marks


consistently earning good profits for many years. This year too, it

has been able to generate enough profits. There is availability of

enough cash in the company and good prospects for growth in

future. It is a well managed organization and believes in quality,

equal employment opportunities and good remuneration practices.

It has many shareholders who prefer to receive a regular income

from their investments.





which decide how much profits should be retained and how much

has to be distributed by the company.

Quoting the lines from the above discussion, identify and explain

any four such factors.




Stability of earnings affects dividend decision as a company having

stable earnings is in a position to declare higher dividends.







½ mark for identifying

the factor

+

½ mark for quoting the

line

+



26


‘It has many shareholders who prefer to receive regular income from

their investments’.







½ mark for explanation

=

1 ½ x 4

=

6 marks



27

66/3


BUSINESS STUDIES



DISTRI-

BUTION

OF MARKS


lakhs. He was offered free insurance for the first year and three free

servicing to be availed after the car had covered 5,000 km, 10,000 km

and 15,000 km respectively. When Himanshu took the car for the

first free servicing, he was told that the car was not new and first

service had already been availed on this car. He felt cheated and filed

a complaint in the State Commission. Being not satisfied with the

decision of the State Commission, after two months he decided to file

an appeal against it.

Can Himanshu appeal against the decision of the State Commission?


Ans. No, Himanshu cannot appeal now as the appeal has to be filed

within 30 days of passing of the order by the State Commission.

½ + ½

=

1 mark

2 Q. How does ‘cost of equity’ affect the choice of capital structure of a

company? Explain.


faced by the equity shareholders increases; debt can therefore be used

only upto a level.

1 mark

3 Q. ‘Bharat Express’ specializes in Courier Services. Its ‘wide range

of express package and parcel services’ help business firms to make

sure that the goods are made available to the customers at the right

place and at the right time.




maintain inventory.

½ mark for

identification

+

½ mark for reason

=

½ + ½

=

1 mark

4 Q. ‘Maruti Vega Ltd.’ entered into the market with coloured television

and have now introduced products like audio systems, air-

conditioners, washing machines, etc. The company is not only

offering the products but also handling complaints and offering after-

sales services.


1 mark



28




by: (Any two)


creating employment



½ x 2

=

1 mark

6 Q. ‘Himalaya Ltd.’, is engaged in manufacturing of washing


washing machines in a day. There is an occupational specialization in

the organization which promotes efficiency of employees. There is no

duplication of efforts in such type of organization structure.



1 mark

7 Q. Give the meaning of ‘Programme’ as a type of plan.

Ans. Programme is a detailed statement about a project which outlines the

objectives, policies, procedures, rules, resources required and the

budget to implement any course of action.

1 mark

8 Q. Define ‘co-ordination.’

Ans. Co-ordination is the process by which a manager synchronises the

activities of different departments towards the achievement of a common

goal.

(or any other correct definition)

1 mark

9 Q. State any three features of ‘Informal Organisation.’

Ans. Features of Informal Organisation are: (any three)

(i) It originates from within the formal organisation.

(ii) It emerges spontaneously and is not deliberately

created by the management.

(iii) The standards of behaviour evolve from group norms.

(iv) Independent channels of communication are developed by group

members.

(v) It has no definite structure or form.

(If an examinee has given only the headings , ½ mark for each


1 mark for each

statement

=

1 x 3

=

3 marks

10 Q. Jaideep recently joined as the Managing Director of ‘Tivori Ltd.’,

an apparel designing company. He observed that the company had a

1 mark for

identifying the



29

number of experienced fashion designers on its payroll. They

regularly offered useful suggestions which were neither appreciated

nor rewarded by the company. Instead the company outsourced its

services to some renowned fashion designers and paid them a good

compensation for their services. Because of this the employees felt

disheartened and stopped giving useful suggestions.









(ii) Status




deducted)

barrier

+

½ mark for naming

the category of

barrier

+

½ mark for stating

the category of

the barrier

+

(½ mark for naming

another barrier

+

½ mark


=

1+1+1

=

3marks













½ mark for the

heading

+

½ mark for

the

explanation

=

1 x 3

=

3 marks







turnover and absenteeism. All the workers are happy. Even then



30

the assembly of air-conditioners 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.







‘Recently the company had conducted the ‘Time’ ….can assemble ten

air-conditioners in a day’.

OR






‘Even then the assembly of air-conditioners per day is 800 units only’.

Measurement of actual performance with the standards in an objective and

reliable manner.



Comparing actual performance with the standards to find out the

deviation, if any.



gossiping.


(If an examinee has given the steps of the process not discussed

above, ½ mark may be deducted)



1 mark for

identification

+

½ mark for stating

each step

=

½ x 4

=

2 marks

=

1+2

=

3 marks

13 Q. How do the ‘Company-related factors’ affect the choice of



31

channels of distribution? Explain.




channels.






½ mark for the

heading

+

1 mark for each

explanation

=

1 ½ x 2

=

3 marks

14 Q. State any four points which highlight the importance of principles

of management.

Importance of principles of management :(any four):

(i) They provide the managers with useful insights into reality.

(ii) They help in optimum utilisation of resources as the wastages

associated with trial and error approach can be overcome.

(iii) They help in effective administration as the decisions are free from

personal bias.

(iv) They help in taking scientific decisions which are based on objective

assessment of the situation.

(v) They help in meeting changing environment requirements as they can

be modified according to the needs of the environment.

(vi) They help in fulfilling social responsibility by responding to the

demands of the public.

(vii) They are used as a basis for management training, education and

research by providing the basic groundwork for the development of

management as a discipline.


should be awarded)

1 mark for

each

statement

=

1 x 4

=

4 marks

15 Q. Explain any two points of importance of ‘consumer protection’

from the point of view of business and any two points from the point

of view of consumers.

Ans. Importance of ‘consumer protection’ from the point of view of

business: (Any two)

½ mark for the

heading

+

½ mark for the

explanation



32

(i) Long-term interests of business.

(ii) Business uses society’s resources.

(iii) Social Responsibility.

(iv) Moral Justification.

(v) Government Intervention.

Importance of ‘consumer protection’ from the point of view of

consumers: (Any two)

(i) Consumer Ignorance.

(ii) Unorganized consumers.

(iii) Widespread exploitation of consumers.


correct explanations, full credit should be given)

=

1 x 2

=

2 marks

+

½ mark for the

heading

+

½ mark for the

explanation

=

1 x 2

=

2 marks

=

2 +2

=

4 marks




machines. Since the investment is large, it requires long-term

finance. It decides to raise funds by issuing equity shares. The issue

of equity shares involves huge floatation cost. To meet the expenses

of floatation cost, the company decides to tap the money market.



(b) What is the duration for which the company can get funds

through this instrument?








1 mark for naming

the instrument

+

1 mark for its

explanation

+

1 mark for duration

+

1 mark for any other

purpose

=

1+1+1+1

=

4 marks

17 Q. Beni, after completing her MBA, took up a job with a

multinational company named ‘Fortio’. The company was paying

good salary and perks to its employees. The wages were within the

paying capacity of the company that provided the employees a

reasonable standard of living. The company also had a good work-

culture and the behaviour of superiors was very good towards their



33

subordinates. Beni was very happy in this organization, but due to

long working hours she did not have time to cook her meals. She had

to depend on outside food, which was deteriorating her health.

She observed that this problem was faced by many of her colleagues,

not only in her company but also in many other companies. This was

because of increase in the number of working women and non-

availability of hygienic home-cooked food. She identified this as a

great opportunity and decided to give up her job to supply packaged

home-cooked food to office goers at a reasonable price. At the end of

the day she was also distributing the left-over food in the nearby

night-shelters.


above.


(c) Identify any two values being communicated by the company to

the society in the above case.

Ans. (a) Social environment which includes social forces like customs

and traditions, values, social trends etc.

‘This was because of increase in the number of working women and non-

availability of hygienic home-cooked food’.






two)






½ mark for

identifying

the

dimension

+

½ mark for either

quoting the line

OR

stating the dimension

+

½ mark for

identifying

the

principle

+

½ mark for

either quoting the

line

OR


+

1 mark for each

value

=

(1 x 2)

=

2 marks

=

1+1+2

=

4 marks



increased demand. Therefore, the workers are seeking extra

guidance from the supervisor and the supervisor is overburdened

with the frequent calls of workers.




34






three)


knowledge.



machines.


satisfied.


should be awarded)

1 mark

+

1 mark for each

statement

=

1 x 3

=

3 marks

=

1+3

=

4 marks

19 Q. Neeraj Gupta started a company ‘YoYo Ltd.’ with ten employees,

to assemble economical computers for the Indian rural market. The

company did very well, in its initial years. As the product was good

and marketed well, the demand went up. To increase production the

company decided to recruit additional employees. Neeraj Gupta, who

was earlier taking all decisions for the company, had to selectively

disperse the authority. He believed that people are competent,

capable and resourceful and can assume responsibility for effective

implementation of their decisions. This paid off and the company

was not only able to increase its production but also expanded its

product range with different features.
















1 mark for

identifying the

concept

+

(½ mark for the

heading

+

½ mark


=

1 x 3

=

3 marks

=

1+3

=

4 marks



35

20 Q. Give the meaning of ‘divisional structure’ of organizing. State its

any four advantages.

Ans. Divisional structure is an organisation structure comprising of

separate business units or divisions created on the basis of different

products, geographical area, customer groups etc.

Advantages of divisional structure: (Any four)

(i) Product specialisation helps in the development of varied skills.

(ii) It helps in the fixation of responsibility as divisional heads are

accountable for profits, revenues and costs related to their departments.

(iii) It promotes flexibility, initiative and faster decision making as each

division is an autonomous unit.

(iv) It facilitates expansion and growth as new divisions can be added

without interrupting the existing operations.


should be awarded)

1 mark for

the

meaning

+

1 mark for stating

each

advantage

=

1 x 4

=

4 marks

=

1+4

=

5 marks



the Manager senior to her retired, all her colleagues thought that now

Anjali would be promoted. But to everyone’s surprise the vacant

post was filled by an outsider ‘Miss Monika’. Anjali felt demoralized

and her performance started declining. She would absent herself

often and could not meet her targets.







started improving.





Ans. (a) Directing.

(b) Motivation.





1 mark for

identifying the

function

+

1 mark for

identifying the

element

=

+

1 mark for each

feature

=

(1 x 3)



36


(If an examinee has identified the element in part (b) as non financial

incentive, full credit is to be given)

=

3 marks

=

1+1+3

=

5 marks

22 Q. Mohit Gupta is working with ‘Yellow Security Services Ltd.’ He

is also recruiting security guards for the company. The company






(a) Name the source of recruitment used by ‘Yellow Security Services

Ltd.’





stated case.







(iii) It is a costly process as a lot of money is spent on advertisement and

processing of applications.


should be awarded)







1 mark for naming

the source of

recruitment

+

1 mark for stating

one disadvantage

+

1 mark for

identifying the need

+

1 mark for

identifying each

value

=

1 x 2

=

2 marks

=

1+1+1+2

=

5 marks


(a) Subordination of Individual Interest to General Interest.

(b) Development of Each and Every Person to His or Her Greatest

Efficiency.

Ans.

(a) Subordination of Individual Interest to General Interest:



37

• The interests of an organisation should take priority over the

interests of any individual employee.

• The larger interests of the workers and stakeholders are more

important than the interest of any one person.

• A manager can ensure this by his/ her exemplary behaviour.

(b) Development of Each and Every Person to His or Her Greatest

Efficiency:

• This principle is concerned with efficiency of employees which

could be built in right from the process of employee selection.

• The work assigned to employees should suit their capabilities.

They should be given the required training to increase their

efficiency.

• Efficient employees would produce more and earn more. This will

ensure their greatest efficiency and prosperity for both the

company and the workers.

1 x 3

=

3 marks

1 x 3

=

3 marks

=

3+3

=

6 marks

24 Q. Radhika was a student of Business Studies of Class XII. Her

father was a farmer who grew different varieties of rice and was well-

versed about various aspects of rice cultivation. He was also selected

by the government for a pilot-project on rice cultivation. As a

project-work in Business Studies she decided to study the feasibility

of marketing good quality rice at a reasonable price. Her father

suggested her to use internet to gather customers’ views and opinions.

She found that there was a huge demand for packaged organic rice.

She knew that there were no pre-determined specifications in case of

rice because of which it would be difficult to achieve uniformity in the

output. To differentiate the product from its competitors, she gave it

the name of ‘Malabari Organic Rice’ and classified it into three

different varieties namely – Popular, Classic and Supreme, based on

the quality. She felt that these names would help her in product

differentiation.


paragraph.







OR

1 mark for naming

the function

+

½ mark for quoting

the line



38

‘…classified it into three different varieties namely – Popular, Classic

and Supreme, based on the quality’.

(iii) Branding.

‘To differentiate the product from its competitors, she gave it the name of

‘Malabari Organic Rice’.’

OR



CORRECTLY AND HAS GIVEN THE EXPLANATION

WITHOUT QUOTING THE LINES FROM THE ABOVE PARA,

FULL CREDIT IS TO BE GIVEN)

+

½ mark

for its explanation

=

2 x 3

=

6 marks


consistently earning good profits for many years. This year too, it has

been able to generate enough profits. There is availability of enough

cash in the company and good prospects for growth in future. It is a

well managed organization and believes in quality, equal employment

opportunities and good remuneration practices. It has many

shareholders who prefer to receive a regular income from their

investments.





which decide how much profits should be retained and how much has

to be distributed by the company.


four such factors.




Stability of earnings affects dividend decision as a company having stable

earnings is in a position to declare higher dividends.






½ mark for

identifying the factor

+

½ mark for quoting

the line



39



‘It has many shareholders who prefer to receive regular income from

their investments’.







+

½ mark for

explanation

=

1 ½ x 4

=

6 marks



H$moS> Z§ 66/1...66/1 5 P.T.O. Himanshu purchased a new car from NGalaxy Motors O for < 25 lakhs. He was offered free insurance for the first year and three free servicing to

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