Ms Business Studies Set 66-4-1,2,3 2019

-Strictly Confidential: (For Internal and Restricted Use Only)
Senior School Certificate Examination

March -----2018-19
Marking Scheme---Business Studies 66/4/1, 66/4/2, 66/4/3
General Instructions:
1. You are aware that evaluation is the most important process in the actual and correct
assessment of the candidates. Small mistakes in evaluation may lead to serious problems
which may affect the future of the candidates, education system and teaching profession.
To avoid mistakes, it is requested that before starting evaluation, you must read and
understand the spot evaluation guidelines carefully. Evaluation is a 10-12 days mission
for all of us. Hence, it is desired from you too give your best in this process.
2. Evaluation is to be done as per instructions provided in the marking scheme. It should

not be done according to one’s own interpretation or any other consideration. Marking
scheme should be strictly adhered to and religiously followed. However, while evaluating
answers which are based on latest information or knowledge and innovative may be
assessed and marks be awarded to them.
3. The head examiner has to go through the first five answer scripts evaluated by each
evaluator to ensure that evaluation has been carried out as per instructions given in the
marking scheme. The remaining answer scripts meant for evaluation shall be given only
after ensuring that there is no significant variation in the marking and encircled.
4. 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.
5. If a question does not have any parts marks must be awarded in the left hand margin
and encircled.
6. If a student has attempted an extra question ,answer of the question deserving more
marks should be retained and other answer scored out
7. 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.
8. The examiners should acquaint themselves with the instructions given in the
Guidelines for Spot Evaluation before starting the actual evaluation.
9. Every examiner should stay full working hours i.e. 8 hours every day and evaluate 25
answer books.
1
10. It is expected that the marking scheme should be followed objectively to ensure
quality evaluation. For instance, if an examinee scores 24 marks, then the marks should
not be inflated to 27 simply to pass him/ her.
11. Avoid the following common type of errors committed by the examiners in the pat-
Ø Leaving answers or parts thereof unassessed in the answer script.
Ø Giving more marks for an answer than assigned to it or deviation from the
marking scheme.
Ø Wrong transference of marks from the inside pages of the answer books to the
title page.
Ø Wrong question wise totaling on the title page.
Ø Wrong totaling of marks of the two columns on the title page.
Ø Wrong grand total.
Ø Marks in words and figures not tallying.
Ø Wrong transference of marks from answer books to award list.
Ø Answer marked as correct but marks not awarded.
Ø Half or a part of answer marked correct and the rest as wrong but no marks
awarded.
12. 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.
13. 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.
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.
16. As per the orders of Hon’ble Supreme Court, the candidates would now be permitted
to obtain photocopy of the Answer Book on request on payment of the prescribed fee. All
examiners/ Head Examiners are once again reminded that they must ensure that
evaluation is carried out strictly as per value points for each answer as given in the
Marking Scheme.
2
..
MARKING SCHEME – 2018-19
BUSINESS STUDIES
66/4/1
66 66 66 EXPECTED ANSWERS / VALUE MARKS
/4 /4 /4 POINTS
/1 /2 /3
SECTION A
1 3 5 Q. Principles of management equip the
managers to foresee the cause and effect
relationships of their decisions and
actions so that the wastages associated
with a trial and error approach can be
overcome.
Identify the point of significance of
principles of management highlighted
here.
Ans. Optimum utilization of resources and 1 mark
effective administration.
2 4 6 Q. How are ‘Policies’ and ‘Procedures’

interlinked?
Ans. ‘Policies’ and ‘Procedures’ are
interlinked as procedures are steps to be 1 mark
carried out within a broad policy
framework to enforce a policy.
OR OR
Q. What is meant by ‘Developing

Premises’ in the process of planning?
Ans.‘Developing Premises’ in the process

of planning means making certain 1 mark
assumptions about future conditions which
are considered to be the base upon which
3
plans are to be drawn.
3 5 7 Q.Why is it said that Controlling is a

continuous activity?
Ans. Controlling is said to be a continuous
activity as it involves a constant review of
actual performance to ensure that 1 mark
organizational activities are performed as
per the plans.
OR OR
Q. Why is Controlling called a forward

looking function? 1 mark
Ans. Controlling is called a forward
looking function because controlling seeks
to improve the future performance on the
basis of past experience.
4 - - Q. State any one function performed by

non-governmental organisations for
protection and promotion of interest of
consumers.
Ans. Functions performed by non-
governmental organisations for protection
and promotion of interest of consumers:
(Any one)
(i) Educating the general public about

consumer rights by organizing training 1 mark
programs, seminars and workshops.
(ii) Publishing periodicals and other

publications to impart knowledge about
consumer problems, legal reporting, reliefs
available and other matters of interest.
(iii) Carrying out comparative testing of
4
consumer products in accredited
laboratories to test relative qualities of
competing brands and publishing the test
results for the benefit of consumers.
.
(iv) Encouraging consumers to strongly
protest and take action against
unscrupulous, exploitative and unfair trade
practices of sellers.
(v) Providing legal assistance to consumers

by way of providing aid , legal advice,
etc.in seeking legal remedy.
(vi) Filing complaints in appropriate

consumer courts on behalf of the
consumers.
(vii) Taking initiative in filing cases in

consumer courts in the interest of the
general public, not for any individual.
5 - - Q. What is the meant by ‘Packaging’?

Ans. ‘Packaging’ means the act of 1 mark
designing and producing the container or
wrapper of a product and putting the
product into it.
OR OR
Q. State any one quality of a good

salesman.
Ans. Qualities of a good salesman: (Any

one)
1 mark
(i) A good salesman should have physical
qualities such as pleasing and charming
personality which creates a good
5
impression on the customers.
(ii) He/she should be social, humble and
cooperative
(iii) A salesman must possess imagination,
foresight, presence of mind, good memory
and initiative.
(iv) He/she should have full and updated
knowledge about the product he is selling.
(v) He/she should have good
communication skills.
(vi) He/she must be honest and sincere in
performing his / her duty.
(vii) A salesman who is polite and
courteous generates buyer’s confidence.
(viii) A salesman should have the
convincing power to develop a belief in a
customer that the product he is buying is
the best.
.
6 8 2 Q. Koby Ltd. is an 87-year-old reputed
consumer goods company. It is known
for offering good quality electronic
products at reasonable prices. It has
branches all over India. It has a large
shareholder base. The shareholders
desired that some dividend is paid every
year on their investments. Company’s
management understands that it is
important to keep the shareholders
happy and satisfied. As a matter of
policy, they declare a certain amount of
dividend every year out of profits rather
than reinvesting the whole as retained
earnings.
Identify the factor affecting dividend
decision being highlighted in the above
situation.
6
Ans. Shareholders preference 1 mark
7 1 3 Q. Mahima Jain is the Senior Manager

in the Advisory Services Department of
Kodes Ltd. She regularly prepares
performance reports of her subordinates
as a part of the appraisal.
Identify the step of the controlling
process performed by her.
Ans. Measurement of actual performance 1 mark
8 2 4 Q. Ravi Jain was the Chief Executive

Officer of Nath Traders. He was worried
about the heavy expenditure on
advertising. He asked his Finance
Manager, Mohit Verma to know the
views of the Sales Manager and his team
regarding this expenditure. Mohit
Verma was thinking of calling a meeting
of the Sales Manager and his team after
tea-break. But by chance at the time of
tea-break, Mohit Verma met with the
Sales Manager and his team in the
canteen. They all discussed about this
expenditure and finalised to give
suggestion to reduce this expenditure.
Identify the type of organisation which
helped the Finance Manager Mohit
Verma, the sales Manager and his team
in finalising the suggestion
Ans. Informal Organisation 1 mark
SECTION B
9 - - Q.Explain any three points that
highlight the importance of controlling
7
function of management.
Ans. Importance of controlling: (Any
three) ½ mark for
(i) Accomplishing organisational goals. heading
(ii) Judging accuracy of standards +
(iii) Making efficient use of resources. ½ mark for
(iv) Ensuring order and discipline explan-
ation
(v) Improving employee motivation =1 x 3
(vi) Facilitating coordination in action = 3 marks
(If an examinee has not given the

headings as above but has given the
correct explanation, full credit should be
given)
OR OR
Q.Explain with the help of an example

how ‘Management by Exception’ helps
in the controlling process.
Ans. Management by Exception

• It helps in the controlling process by
identifying only significant deviations
which go beyond the permissible limit
and bringing them to the notice of the
management. =2+1
• It is based on the belief that an attempt to =3 marks

control everything results in controlling
nothing.
• Example- In a manufacturing
organization, if the plans lay down 2%
increase in labour cost as an acceptable
range of deviation, then only increase in
labour cost beyond 2% should be
brought to the notice of the management
for corrective action.
8
(or any other suitable example)
10 12 9 Q.Kavita Ghai was the Managing

Director of a restaurant in Lucknow
called ‘Healthy Kitchen’. The restaurant
was doing well and the volume of work
started increasing slowly and steadily.
Kavita Ghai was not able to manage all
the work on her own. The increasing
magnitude of work made it impractical
for her to handle it all by herself.
Moreover her objective is to open more
branches of this restaurant at different
places. She appointed Nikhil Gupta, as a
General Manager of ‘Healthy Kitchen’,
Lucknow and gave him the right to
command his subordinates and to take
action within the scope of his position.
For smooth running of the restaurant
she also gave him authority to hire and
train the staff as per the requirements.
Kavita Ghai was satisfied with the work
of Nikhil Gupta and was able to open
other branches of the restaurant in Agra
and Kanpur also.
(a)Identify the concept followed by
KavitaGhai which helped her to open
the new branches of the restaurant.
(b)Also, explain briefly the two points of
importance of the concept identified in
(a) above
Ans. (a) Delegation of authority 1 mark
(b) Importance of Delegation of authority: +

(Any two)
9
(i) Effective management
(ii) Employee development ½ mark for
(iii) Motivation of employees heading
(iv) Facilitation of growth +
(v) Basis of management hierarchy ½ mark
for
(vi) Better coordination.
explan-
ation
(If an examinee has not given the 1x2=
headings as above but has given the 2 Marks
correct explanation, full credit should be =
given) 1+2=
3 marks
11 13 10 Q.Explain with the help of any three

points how proper Financial Planning
enables the companies to tackle the
uncertainty in respect of availability and
timings of funds and helps in smooth
functioning of the organisation.
Ans. Financial planning enables the
management to tackle the uncertainty in
respect of availability and timing of funds
and helps in smooth functioning of the
organization by: (Any three)
(i) Helping in forecasting what may

happen in future, it makes the firm better
prepared to face the future situations. =1 mark
for each
(ii) Helping in avoiding business shocks point
and surprises and prepares the company for =1 x 3
it.
=3 marks
(iii) Helping in co-ordinating various
business functions by providing clear
policies and procedures.
(iv) Detailed plans of action reduce waste,

duplication of efforts and gaps in planning.
10
(v) Financial plan serves as a control
technique by making the evaluation of
actual performance easier.
(vi) Linking the present with the future.
(vii) Providing a link between investment

and financing decisions.
OR OR
Q. How do debt and equity differ in

their costs and risks involved? Explain.
Ans. Debt and Equity differ in their costs

and risks involved
Cost
• The cost of debt is lower than the cost of
equity for a firm because the lender
requires a lower rate of return as his risk
is lower than the equity shareholder. 1 ½ marks
• Moreover, interest paid on debt is a tax
deductible expense whereas dividends
are paid out of after-tax profits.
+
Risk
• Debt is more risky for a business because
the payment of interest and the return of
principal amount are obligatory for the
business which increases the financial 1 ½ marks
risk of a company whereas there is no
such compulsion in case of equity, =
making it riskless for the company. 3 marks
12 - - Q. How is ‘planning a pervasive

function of management’ Explain.
Ans.‘Planning is a pervasive function of
11
management’ as it is required in all types
of organizations, at all levels of
management and in all departments of an 3 marks
organization. It is not an exclusive function
of top management nor of any particular
department.
The scope of planning differs at different
levels and among different departments.
13 10 12 Q. Indian equity markets are going

through a phase of boom. There is a
huge growth potential for innovative
technologies. This has resulted in lots of
new ventures vying for a market share
and old enterprises trying to keep up
with the pace with which changes are
taking place in the economy. This
technological innovation has helped even
smaller businesses to compete on a
global scale.
Identify and explain the three factors
highlighted above which affect the
working capital requirements of such
enterprises.
Ans. Factors affecting Working Capital

Requirements:
½ mark
(i) Business Cycle for
(ii) Growth Prospects identifying
(iii) Level of competition the factor
+
(If an examinee has not given the ½ mark
headings as above but has given the for its
explanation
=1 x 3
given) =3 marks
12
SECTION C
14 17 15 Q. In an environment of rising
petroleum prices and a large middle
class population in India, KV Motors
Ltd. recognized the need for small cars
in India. It created a product far
superior than their competitors not only
in terms of quality but also in terms of
overall driving experience. It soon
became the leader in the small car
market. As the Indian government was
encouraging foreign investment, MNCs
having a big name in car manufacturing
entered the Indian market.
KV Motors further expanded its service
network and quality creating an entry
barrier for the competitors. It depicted
its strengths through various brand-
building activities. As a result, the
market share of KV Motors is refusing
to go down in spite of all major
automakers as its competitors.
(a) Identify the economic reforms
highlighted in the above case.
(b) Quoting the lines, explain any two
points of importance of Business
Environment being highlighted in the
above case. ½ mark
for each
reform
Ans. (a) Liberalisation and Globalisation
=½x2
= 1 mark
(b) Importance of Business Environment
(Any two) +
(i) It helps the firm to identify ½ mark for
13
opportunities and get the first mover quoting
advantage. the line
+
“KV Motors Ltd. recognized the need for ½ mark
small cars in India.” for naming
the point of
importance
(ii) It helps the firm in improving
+
performance. ½ MARK FOR
EXPLANATION
“It created a product far superior than =1 ½ x 2
their competitors not only in terms of = 3 marks
quality but also in terms of overall driving
experience. It soon became the leader in =1 +3 marks
the small car market.
=4 marks
(iii) It helps the firm in planning and policy
formulation.
“KV Motors further expanded its service

barrier for the competitors. It depicted its
strengths through various brand-building
activities.”
(Full credit is to be given only if the

examinee has given the correct
explanation also in the answer)
15 18 16 Q. Differentiate between Money Market

and Capital Market on the following
basis:
(a) Expected return
(b) Safety
(c) Liquidity
(d) Instruments
Ans. Difference between Money Market
and Capital Market
14
Basis Money Capital
Market Market
(a) Money market Generally

Expected securities yield capital market
Return comparatively securities 1 mark
less return. yield a higher
for each
return than
money market correct
instruments. difference
(b) Safety Money market Capital market =1 x 4
securities are securities are =
comparatively riskier than
safer. money market 4 marks
instruments.
(c) Money market Capital market
Liquidity securities are securities are
comparatively comparatively
more liquid. less liquid.
(d) Instruments Instruments
Instruments like treasury like shares,
bill, debentures
commercial and bonds are
paper, traded in
certificates of Capital
deposit, call market.
money and
commercial bill
are traded in
money market.
OR
Q. Differentiate between Primary

Market and Secondary Market on the
following basis:
(a) Company involvement
(b) Price determination
(c) Location
(d) Capital formation
Ans. Difference between Primary Market
15
and Secondary Market
Basis Primary Secondary
Market Market
(a) Securities areOwnership of

Company sold by the existing
Involvement company to securities is 1 mark
the investors.exchanged for each
between correct
investors; difference
company is =1 x 4
not involved. =
(b) Price Prices are Prices are
Determination determined by determined
the by the forces 4 marks
management of demand
of the and supply of
company. securities.
(c) Location No fixed Located at
geographical specified
location. places.
(d) Capital Directly Indirectly
Formation promotes promotes
Capital Capital
formation. formation.
16 19 17 Q.Mudit Gupta set up ‘Healthy
Biscuits’, a company manufacturing
various kinds of biscuits like oat
biscuits, soya biscuits, ragi biscuits and
wholewheat biscuits. He knew that a
customer would only pick up a small
quantity of the product, so he did not
want to invest in starting his own retail
outlets. He planned to market the
product at the ‘In and Out’ stores at
various petrol pumps in the city though
the other biscuit manufacturers were
using other channels of distribution.
(a) Give the meaning of ‘Channels of
Distribution’.
16
(b) Name the factors that affected the
determination of choice of channels and
state how they will affect the
determination of choice of channels of
distribution in the above case.
Ans. (a) Channels of Distribution mean a
1 mark
set of individuals and firms that take title,
or assist in transferring title to particular
goods or services as it moves from the
producers to the consumers.
+
(b) Factors affecting determination of

choice of channels ½ mark
(i)Product related factor: Since the for naming
product is a consumer product, its unit the factor
value is low and is standardized, longer +
channels should be used. ½ mark for
(ii)Market related factor: Since the size stating the
of order of biscuits for ‘Healthy Biscuits’
effect
was small, large number of intermediaries =1x3
were used. =3 marks
(iii)Competitive factor: Thecompany
decided to be different from the choice of =1+ 3
channel selected by the competitors, so it =4 marks
decided to market the product at the ‘In
and Out’ stores at various petrol pumps in
the city.
17 - - Q.Explain any four points of importance

of consumer protection from the
business point of view.
½ mark for
Ans. Importance of consumer protection each point
from business point of view: (any four) +
(a) Long term interest of business ½ mark for
its
(b) Business uses society’s resources.
explanation
(c) Social responsibility
=1x4
(d) Moral Justification =4 marks
17
(e) Government intervention.
given)
OR
Q.Describe the following rights of a

consumer as per consumer protection
Act, 1986:
(a) Right to be Heard
(b) Right to Safety
Ans.
(a)Right to be Heard
The consumer has right to file a complaint
and to be heard in case of dissatisfaction
with a product or a service.
It is because of this reason many firms 2 marks
have set up their own consumer service
and grievance cells.
(b) Right to Safety

+
The consumer has a right to be protected
against goods and services which are
hazardous to life and health.
It includes the right to get protection 2 marks
against the risks caused due to the use of
substandard products or products that do
not conform to the safety norms. = 4 marks
18 15 19 Q.Vandana Public School had a vacancy

of a Maths teacher. They were looking
for a smart and creative teacher having
a drive for excellence. An advertisement
was given in all leading dailies. Since the
response was huge, the school examined
18
all the application forms and rejected
the candidates who did not have the
necessary qualifications. Thereafter, a
test was conducted to measure the
existing skills of the candidates. After
that it was followed by a formal in-depth
conversation with the Principal of the
school and a panel of Maths experts.
(a) Explain the steps that have been
performed by Vandana Public School in
the process of identifying and choosing
the best candidate. ½ mark
for naming
(b) Give the name and also the meaning the step
of the test which was conducted by the +
school. ½ mark for
its
Ans. explanation
(a) Steps performed by Vandana Public =1 x 3
School in the process of identifying and =3 marks
choosing the best candidate:
(i) Preliminary Screening ½mark for
(ii) Selection Tests
(iii) Employment Interview naming the
test
(b) Trade test was conducted by the school +
to measure the existing skills possessed ½mark for
by the candidates. its meaning
=1 mark
= 3+ 1 marks
4 marks
19 16 14 Q.Financial market is a market for
creation and exchange of financial
assets. It helps to link the savers with the
investors and directs available funds
into their most productive investment
opportunity. It also facilitates easy
19
purchase and sale of financial assets
through the stock exchange. The stock
exchange not only facilitates buying and
selling of existing securities but also
educates public about how their
investments in the financial market can
yield good returns.
(a) State two functions performed by
financial market in the above case.
(b) Explain two more functions of the
stock exchange, other than those stated
in the above case. 1 mark for
each
Ans. (a) Functions performed by Financial function
market: =1x2
(i) It mobilises savings and channelises = 2 marks
them into most productive use.
+
(ii) It provides liquidity to financial assets ½ mark for
by facilitating easy purchase and sale of naming the
securities through stock exchanges. function
+
(b) Functions of stock exchange, other than ½ mark for its
explanation
those stated in the above case(any
=1x2
two): = 2 marks
(i) Pricing of securities
(ii) Ensures safety of transactions = 2 +2
= 4 marks
(iii) Contributes to economic growth
(iv) Provides scope for speculation

given)
SECTION D
20 21 22 Q. Since childhood Niru and Janak had
20
been watching their grandmother
procuring wheat form the market,
washing it well drying it and getting it
converted into atta. They conducted a
survey to collect data to identify whether
there is demand for readymade atta and
realised that with the growing number
of working women, it is the need of the
hour to manufacture high quality atta.
They named their product ‘Srijan’ and
set up ‘Srijan Atta Factory’ at Jaunpur
Village. To penetrate in the market, they
decided to keep the price low. For
maintaining smooth flow of their
product into the market and avoiding
delays in delivery, it was decided to store
wheat at SKM Services which had
scientific processes and logistics
facilitating quick delivery. They also set
up an online complaint portal to take
care of consumer grievances.
By quoting the lines from the above
paragraph, state five marketing
functions undertaken by Niru and
Janak for successful marketing of
‘Srijan’ atta.
Ans. Marketing functions undertaken by

Niru and Janak:
(i) Gathering and analyzing market
information is necessary to identify the
needs of the customers and take various
decisions for successful marketing of
products and services.
“They conducted a survey to collect data

to identify whether there is demand for
readymade atta and realised that with the
21
growing number of working women,it is
the need of the hour to manufacture high 1 mark for
quality atta.” each point
along with
quoting
(ii) Branding is the process of giving a
= 1 x 5
name/sign/symbol to the product in order
to distinguish the product from that of
competitors. =5 marks
“They named their product ‘Srijan”
(iii)Pricing of product involves fixation of

price of a product and taking various
related decisions like pricing strategies.
“To penetrate in the market, they
decided to keep the price low.”
(iv) Storage or warehousing refers to

arranging for proper storage of goods to
maintain smooth flow of goods in the
market and avoid delay in delivery.
“For maintaining smooth flow of their
facilitating quick delivery.”
(v) Customer support Services aim at

providing maximum satisfaction to the
customers for developing brand loyalty for
a product.
“They also set up an online complaint
portal to take care of consumer
grievances.”
21 - - Q. Explain any five characteristics of co-

ordination.
22
Ans. Characteristics of coordination: (any
five) ½ mark
(i)Integrates group efforts
(ii) Ensures unity of action for naming
(iii) Continuous process +
½ mark for
(iv) Pervasive function
explanation
(v) Responsibility of all managers
(vi) Deliberate function =1 x5
(If an examinee has not given the = 5 marks

given)
OR
Q.Explain any five points of importance

of management.
½ mark
Ans.Importance of management: for naming
(a) Management increases efficiency +
(b) Management creates a dynamic ½ mark
organization for
(c) Management helps in achieving group explanation
goals
(d) Management helps in achieving =1 x5
personal objectives
(e) Management helps in the development =5 marks
of society.

given)
SECTION E
22 20 21 Q.‘Newrange’ is a chain of departmental
23
stores in India with 56 outlets. It sells
the best products at the lowest price.
The Human Resource department takes
care to select, train, motivate and retain
the employees. Currently, it has 170 full
time employees and 30 part time
employees.
For top-level management, employees
are recruited through private
consultants. These professional
recruiters can entice the needed top
executives from other companies by
making the right offers. Employees
appointed at the entry level are
recruited through walk-in. For that, a
notice is placed on the notice board
specifying the details of the jobs
available. ‘Newrange’ also encourages
present employees or their friends and
relatives to refer candidates. They also
visit some of the reputed educational
institutions to hire some of the most
talented and promising students as its
employees.
‘Newrange’ shifts workforce from
surplus departments to those where
there is shortage of staff instead of
laying them off.
Explain the various internal and
external sources of recruitment used by
‘Newrange’ to recruit its employees.
Ans. Sources of recruitment used by

‘Newrange’: ½ mark for
identifying
(i) Internal +
• Transfers ½ mark for
explanation
(ii) External
24
• Placement Agencies and Management = 1 mark
Consultants
• Direct Recruitment =1 x 5
• Recommendations of Employees
=5 marks
• Campus recruitment
23 - - Q. Differentiate between ‘Functional

Structure’ and ‘Divisional Structure’ on
any six bases.
Ans. Difference between Functional
structure and Divisional Structure
Basis Functional Divisional
Structure Structure
(a) Formation is Formation is
Formation based on based on
functions product lines
(b) Occupational Product
Specialisation specialisation specialisation
(c) Cost Functions are Duplication of
not efforts in =
duplicated, various 1 x 6
hence departments,
economical hence costly
(d) Difficult for a Easy as all
Coordination multi product functions 6 marks
company related to a
particular
product are
integrated in
one division
(e) Difficult to Easy to fix
Responsibility fix responsibility
responsibility for
on a performance
particular
department
(f) Managerial Difficult as Facilitated as
development functional divisional
managers are heads gain
unable to experience in
gather all functions
experience in related to a
diverse areas particular
25
product
OR
Q.Explain any four points of importance

of planning function of management.
Ans. Importance of planning: (Any four

points)
(i) Provides directions
(ii) Reduces the risks of uncertainty
(iii) Reduces overlapping and wasteful ½ mark
activities for the
(iv) Promotes innovative ideas heading
(v) Facilitates decision making +
1 mark for
(vi) Establishes standards for controlling
explanation
(If an examinee has not given the =1½ x4
headings as above but has given the = 6 marks
given)
24 25 23 Q. Three friends, Rajat, Raman and

Ansh, after completing their MBA from
a reputed business school at Mumbai,
were discussing about the type of
organisation they would like to join.
Rajat was very clear that he would like
to take up a government job as it gives
stability about the future income and
work which will help him to work with
greater zeal. It will also provide him
pension when he will retire from his
service.
Raman wanted to work in a company,
which has appropriate skill development
plans for its employees and helps the
employees to grow to higher levels in the
26
organisation. In addition to this, the
company should also provide facilities
like housing, medical aid, etc.
Ansh said that he would prefer to work
in an organisation, which has the culture
of individual autonomy, is considerate to
employees and provides the employees
with opportunity for personal growth
and a meaningful work experience.
(a) Identify the various financial and
non-financial incentives discussed
by the three friends in the above
conversation.
(b) Explain three other non-financial
incentives which were not discussed
by any one of them.
Ans.Financial and non-financial incentives
discussed by the three friends in the above
conversation.
(i) Financial incentives
• Retirement benefits ½ mark
• Perquisites for each
incentive
(ii)Non- Financial incentives =½ x 6
• Job security =3 marks
• Career advancement opportunity
• Organizational climate
• Status
+
(b) Other non-financial incentives which
were not discussed by any one of them ½ mark
(Any three) for each
incentive
• Job enrichment +
• Employee recognition ½ mark
• Employee participation for its
• Employee empowerment explanation
27
=1x3
= 3marks
= 3+3 marks
= 6 marks
25 23 24 Q.Vishesh completed his MBA at a
reputed business school in Lucknow. He
was impressed by the Principles and
Techniques of Scientific Management
developed by F.W. Taylor. On
completing his MBA, he wanted to apply
scientific Management in his family’s
business of fast food chain of restaurants
named ‘Burger Mania’.
His main goal was to reduce costs with
increased output. To begin with, he
wanted to develop a standard method
which would be followed throughout the
organisation. So, he investigated
traditional methods through work study
and unified the best practices. The
standard method, i.e. the best way of
doing the job was then developed taking
into account all parameters right from
the procurement of raw materials till the
delivery of the final product to the
customer. Vishesh also believed that
each person should not only be
scientifically selected but should also be
given the required training to increase
efficiency. For this, he set up a Special
Training Unit called ‘Hamburger’ in
Bengaluru where the workers were
efficiency. For this, he set up a workers
were given the required training to learn
the best method. At the factory, the
ingredients making up a burger were
strategically placed to reduce the time
taken for excess movements. The
28
standard time and other parameters
were determined on the basis of work
study and Vishesh rewarded the
workers for meeting the standard
output.
Now, ‘Burger Mania’ has standardised
processes, raw material, time,
machinery, product and working
conditions that ensure the food they
send out to their customers has the same
high standards of excellence and level of
quality in every chain or franchise.
The application of Scientific
Management to every aspect of
restaurant operations led to ‘’Burger
Mania’s’ widespread success.
Quoting the lines from the above,
explain the Principles and Techniques of
‘Scientific Management’ used by
‘Burger Mania’
Ans. The Principles and Techniques of ½ mark

‘Scientific Management’ used by ‘Burger for quoting
Mania’ are: (Any six) the line +
½ MARK
Principles of scientific management FOR
• Science, not rule of thumb EXPLAINING
“To begin with, he wanted to develop a the principle/
standard method which would be followed technique
throughout the organisation. So, he
1x6
investigated traditional methods through
work study and unified the best
=
practices.” 6 marks
• Development of each and every person

to his/her greatest efficiency and
prosperity
“Vishesh also believed that each person
should not only be scientifically selected
but should also be given the required
29
training to increase efficiency.”
Techniques of scientific management

Method study
“The standard method, i.e. the best way of
into account all parameters right from the
procurement of raw materials till the
customer.”
Motion study
“At the factory, the ingredients making up
a burger were strategically placed to
reduce the time taken for excess
movements.”
Time study
“The standard time and other parameters
were determined on the basis of work study
Standardization (Standardization and

Simplification of Work)
“Now, ‘Burger Mania’ has standardised
processes, raw material, time, machinery,
product and working conditions that
ensure the food they send out to their
customers has the same high standards of
excellence and level of quality in every
chain or franchise.”
Differential piece wage system

“Vishesh rewarded the workers for
meeting the standard output.”

30
..
BUSINESS STUDIES
66/4/2
66 66 6 EXPECTED ANSWERS / VALUE POINTS MARKS
/4/ /4/ 6
1 2 /4
/3
SECTION A
7 1 3 Q. Mahima Jain is the Senior Manager in the
Advisory Services Department of Kodes Ltd.
She regularly prepares performance reports
of her subordinates as a part of the appraisal.
Identify the step of the controlling process
performed by her.
Ans. Measurement of actual performance

1 mark
8 2 4 Q. Ravi Jain was the Chief Executive Officer
of Nath Traders. He was worried about the
heavy expenditure on advertising. He asked
his Finance Manager, Mohit Verma to know
the views of the Sales Manager and his team
regarding this expenditure. Mohit Verma was
thinking of calling a meeting of the Sales
Manager and his team after tea-break. But by
chance at the time of tea-break, Mohit Verma
met with the Sales Manager and his team in
the canteen. They all discussed about this
expenditure and finalised to give suggestion to
reduce this expenditure.
Identify the type of organisation which helped
the Finance Manager Mohit Verma, the sales
Manager and his team in finalising the
suggestion
Ans. Informal Organisation
1 mark
31
relationships of their decisions and actions so
that the wastages associated with a trial and
error approach can be overcome.
Identify the point of significance of principles
of management highlighted here.


interlinked?
Ans. ‘Policies’ and ‘Procedures’ are interlinked 1 mark

as procedures are steps to be carried out within a
broad policy framework to enforce a policy.
OR OR
Q. What is meant by ‘Developing Premises’ in

the process of planning?
Ans. ‘Developing Premises’ in the process of

planning means making certain assumptions 1 mark
about future conditions which are considered to
be the base upon which plans are to be drawn.
3 5 7 Q. Why is it said that Controlling is a


activity as it involves a constant review of actual
performance to ensure that organizational 1 mark
activities are performed as per the plans.
OR OR
looking function? 1 mark
Ans. Controlling is called a forward looking

function because controlling seeks to improve
the future performance on the basis of past
32
experience.
- 6 - Q What is meant by Labelling?
Ans. ‘Labelling ‘ means designing a label and

putting it on the product in order to provide 1 mark
useful information about the product.
OR OR
Q Define Promotion as an element of

marketing mix?
1 mark
Ans. ‘Promotion’ as an element of marketing
mix means set of tools that are used to
communicate information about products to the
target customers and persuading them to buy
them.
(or any other correct meaning)
- 7 - Q. Besides a Consumer, name any two parties

who can file a complaint before the
appropriate consumer forum?
Ans. Parties who can file a complaint before the

appropriate consumer forum (Any two)
(i) Any registered consumers’ association;

(ii) The Central Government or any State
Government;
(iii) One or more consumers, on behalf of
numerous consumers having the same interest;
and =½ x 2
(iv) A legal heir or representative of a deceased = 1 mark
consumer
6 8 2 Q. Koby Ltd. is an 87-year-old reputed

consumer goods company. It is known for
offering good quality electronic products at
reasonable prices. It has branches all over
India. It has a large shareholder base. The
33
shareholders desired that some dividend is
paid every year on their investments.
Company’s management understands that it
is important to keep the shareholders happy
and satisfied. As a matter of policy, they
declare a certain amount of dividend every
year out of profits rather than reinvesting the
whole as retained earnings.
Identify the factor affecting dividend decision
being highlighted in the above situation.
SECTION B
- 9 - Q. How does planning lead to rigidity and
reduce creativity? Explain
Ans.
Planning leads to rigidity because:
§ Plan is drawn with specific targets within a
specific time frame
§ Once the plans are drawn, the managers may 1 ½ marks
not be able to change them
§ May not be in the best interest of the
organisation when circumstances change.
+
Planning reduces creativity since
• People tend to think on the same lines as
others.
• Middle management and other decision 1 ½ marks
makers are neither allowed to deviate from
plans nor are they permitted to act on their
own. =3 marks
13 10 1 Q. Indian equity markets are going through a

2 phase of boom. There is a huge growth
potential for innovative technologies. This has
resulted in lots of new ventures vying for a
market share and old enterprises trying to
34
keep up with the pace with which changes are
smaller businesses to compete on a global
scale.
highlighted above which affect the working
capital requirements of such enterprises. ½ mark
for
Ans. Factors affecting Working Capital Identifying
Requirements: the factor
+
(i) Business Cycle ½ mark for
its
(ii) Growth Prospects explanation
=1 x 3
(iii) Level of competition =3 marks
- 11 - Q State any three measures to overcome

barriers to effective communication .
Ans. Measures to overcome barriers to effective

communication : (any three)
(i) Sender should communicate according to the

needs, education and understanding levels of
receivers. 1 mark
for each
(ii) He should take a proper feedback to improve measure
the communication process and make it more
responsive. =1 x 3
(iii) He should regularlyfollow up

communication and review the instructions
given to subordinates. =3 marks
(iv) He should be aware of language, tone and

content of the message to make it understandable
to the receiver.
35
(v) He should clarify the ideas before
communication.
(vi) He should consult others before

communicating.
(vii) He should convey things of help and value

to listeners.
(viii) He should communicate for present as well

as for future.
(ix) He should be a good listener.
OR
Q State the role of supervisor in the directing

Ans.
(a) Maintaining day to day contact and friendly
relations with the workers. He should act as a
friend, philosopher and a guide to the workers.
(b) Providing good on the job training to the 1 mark for
workers to build an efficient team. each point
(c) Building up high morale among workers
through good leadership. =1 x 3
(d) Giving feedback to the workers after
analysing their work and suggesting ways of
developing their work skills.
(e) Ensuring performance of work according to =3 marks
the targets set.
(f) To oversee the efforts of the workforce.
(g) To ensure that the quality of output is
maintained and wastage of material is
minimized.
(h) To ensure safety standards are maintained.
( If an examinee has given only the heading, ½
mark for each heading should be awarded )
36
10 12 9 Q.KavitaGhai was the Managing Director of
a restaurant in Lucknow called ‘Healthy
Kitchen’. The restaurant was doing well and
the volume of work started increasing slowly
and steadily. KavitaGhai was not able to
manage all the work on her own. The
increasing magnitude of work made it
impractical for her to handle it all by herself.
Lucknow and gave him the right to command
his subordinates and to take action within the
scope of his position. For smooth running of
the restaurant she also gave him authority to
hire and train the staff as per the
requirements.
KavitaGhai was satisfied with the work of
Nikhil Gupta and was able to open other
branches of the restaurant in Agra and
Kanpur also.
(a) Identify the concept followed by
KavitaGhai which helped her to open the new
branches of the restaurant.
(b) Also, explain briefly the two points of
importance of the concept identified in (a)
above
Ans. (a) Delegation of authority 1 mark
+
(b) Importance of Delegation of authority : (Any
two) ½ mark
(i) Effective management for
(ii) Employee development heading
(iii) Motivation of employees +
(iv) Facilitation of growth ½ mark
(v) Basis of management hierarchy for explan-
(vi) Better coordination. ation
(If an examinee has not given the headings as =
above but has given the correct explanation, 1x2=
37
full credit should be given) 2 Marks
1+2=
3 marks
11 13 1 Q.Explain with the help of any three points

0 how proper Financial Planning enables the
companies to tackle the uncertainty in respect
of availability and timings of funds and helps
in smooth functioning of the organisation.
management to tackle the uncertainty in respect
of availability and timing of funds and helps in
smooth functioning of the organization by: (any =1 mark
three) for each
point
(i)Helping in forecasting what may happen in =1 x 3
future, it makes the firm better prepared to face
the future situations. =3 marks
(ii) Helping in avoiding business shocks and

surprises and prepares the company for it.
(iii) Helping in co-ordinating various business

functions by providing clear policies and
procedures.

(v) Financial plan serves as a control technique

by making the evaluation of actual performance
easier.
(vi)Linking the present with the future.
(vii) Providing a link between investment and

financing decisions.
OR
38
Q.How do debt and equity differ in their costs
and risks involved? Explain.
Ans.Debt and Equity differ in their costs and

risks involved 1½
Cost marks
The cost of debt is lower than the cost of equity
for a firm because the lender requires a lower
rate of return as his risk is lower than the equity +
shareholder.
Moreover, interest paid on debt is a tax 1½
deductible expense whereas dividends are paid marks
out of after-tax profits.
=
Risk 3 marks
Debt is more risky for a business because the
payment of interest and the return of principal
amount are obligatory for the business which
increases the financial risk of a company
whereas there is no such compulsion in case of
equity, making it riskless for the company.
SECTION C
14 Q State any four functions performed by non
-governmental organisations for protection
and promotion of interest of consumers?
Ans. Functions performed by NGO (any
four):
(i)Educating the general public about consumer
rights.
(ii) Publishing periodicals and other
publications.
(iii) Carrying out comparative testing of
consumer products.
(iv) Encouraging consumers to strongly protest 1x4
and take action against unscrupulous,
exploitative and unfair trade practices of sellers.
(v) Providing legal assistance to consumers. = 4 marks
(vi) Filing complaints in appropriate consumer
39
courts on behalf of the consumers.
(vii)Taking initiative in filing cases in consumer
courts in the interest of the general public.
OR
Q A Consumer should keep in mind certain
responsibilities while purchasing , using and
consuming goods and services. State any four
such responsibilities of a consumer.
Responsibilities of consumers (Any four):
(i) Be aware about various goods and services
available in the market so that an intelligent and
wise choice can be made.
(ii) Buy only standardised goods as they provide

quality assurance. Thus, look for ISI mark on 1 x 4
electrical goods, FPO/FSSAI mark on food
products, Hallmark on jewellery etc.
= 4 marks
(iii) Learn about the risks associated with
products and services, follow manufacturer’s
instructions and use the products safely.
(iv) Read labels carefully so as to have

information about prices, net weight,
manufacturing and expiry dates, etc.
(v) Assert yourself to ensure that you get a fair

deal.
(vi) Be honest in your dealings. Choose only

from legal source and discourage unscrupulous
practices like black-marketing, hoarding etc.
(vii) Ask for a cash memo on purchase of goods

or services. This would serve as a proof of the
40
purchase made.
(viii) File a complaint in an appropriate

consumer forum in case of a shortcoming in the
quality of goods purchased or services availed.
Do not fail to take an action even when the
amount involved is small.
(ix)Form consumer societies which would play

an active part in educating consumers and
safeguarding their interests.
(x) Respect the environment. Avoid waste,

littering and contributing to pollution.
18 15 1 Q. Vandana Public School had a vacancy of a
9 Mathsteacher.They were looking for a smart
and creative teacher having a drive for
excellence. An advertisement was given in all
leading dailies. Since the response was huge,
the school examined all the application forms
and rejected the candidates who did not have
the necessary qualifications. Thereafter, a test
was conducted to measure the existing skills
of the candidates. After that it was followed
by a formal in-depth conversation with the
Principal of the school and a panel of Maths
experts.
performed by Vandana Public School in the
process of identifying and choosing the best
candidate.
(b) Give the name and also the meaning of the
test which was conducted by the school.
Ans.
(a) Steps performed by Vandana Public School
½ mark for
in the process of identifying and choosing the
naming the step
best candidate:
41
(i) Preliminary Screening +
½ mark for
(ii) Selection Tests its
explanation
(iii) Employment Interview =1 x 3
=3 marks
+
½ mark for
(b) Trade test was conducted by the school to naming the
measure the existing skills possessed by the test
candidates. +
½ mark for
its
meaning
=1 mark
= 3+ 1 marks
= 4 marks
19 16 1 Q.Financial market is a market for creation
4 and exchange of financial assets. It helps to
link the savers with the investors and directs
available funds into their most productive
investment opportunity. It also facilitates easy
purchase and sale of financial assets through
the stock exchange. The stock exchange not
only facilitates buying and selling of existing
securities but also educates public about how
their investments in the financial market can
yield good returns.
(a) State two functions performed by financial
market in the above case.
(b) Explain two more functions of the stock
exchange, other than those stated in the above
case.
Ans. (a) Functions performed by Financial
market:
(i) It mobilises savings and channelises them 1 mark for each
42
into most productive use. function
=1x2
(ii) It provides liquidity to financial assets by = 2 marks
facilitating easy purchase and sale of securities
through stock exchanges. +
½ mark for
(b) Functions of stock exchange, other than those naming the
stated in the above case(any two): function
+
(i) Pricing of securities ½ mark for
(ii) Ensures safety of transactions its
(iii) Contributes to economic growth explanation
(iv) Provides scope for speculation =1x2
= 2 marks
(If an examinee has not given the headings as
above but has given the correct explanation, = 2 +2
full credit should be given) = 4 marks
14 17 1 Q.In an environment of rising petroleum
5 prices and a large middle class population in
India, KV Motors Ltd. recognized the need
for small cars in India. It created a product
far superior than their competitors not only
in terms of quality but also in terms of overall
driving experience. It soon became the leader
in the small car market. As the Indian
government was encouraging foreign
investment, MNCs having a big name in car
manufacturing entered the Indian market.
KV Motors further expanded its service
network and quality creating an entry barrier
for the competitors. It depicted its strengths
through various brand-building activities. As
a result, the market share of KV Motors is
refusing to go down in spite of all major
automakers as its competitors.
(a) Identify the economic reforms highlighted
in the above case.
43
(b) Quoting the lines, explain any two points
of importance of Business Environment being
highlighted in the above case.
½ mark for
Ans. (a)Liberalisation and Globalisation each reform
= 1 mark
(b)Importance of Business Environment (Any
two)
+
(i) It helps the firm to identify opportunities and
½ mark for
get the first mover advantage. quoting
the line
“KV Motors Ltd. recognized the need for
small cars in India.” +
(ii) It helps the firm in improving performance. ½ mark for

naming the
“It created a product far superior than their point of
competitors not only in terms of quality but importance
also in terms of overall driving experience. It
soon became the leader in the small car +
market. ½ mark for
explanation
=1 ½ x 2
(iii) It helps the firm in planning and policy = 3 marks
formulation.
=1 +3 marks
network and quality creating an entry barrier =4 marks
for the competitors. It depicted its strengths
through various brand-building activities.”
(Full credit is to be given only if the examinee

has given the correct explanation also in the
answer)
15 18 1 Q. Differentiate between Money Market and

6 Capital Market on the following basis:
(a) Expected return
(b) Safety
44
(c)Liquidity
(d) Instruments
Ans. Difference between Money Market and
Capital Market
Basis Money Capital
Market Market 1 mark for each
correct
(a) Money market Generally difference
Expected securities yield capital market =1 x 4
Return comparatively securities = 4 marks
less return. yield a higher
return than
money
market
instruments.
(b) Safety Money market Capital
securities are market
comparatively securities are
safer. riskier than
money
market
instruments.
(c) Money market Capital
Liquidity securities are market
comparatively securities are
more liquid. comparatively
less liquid.
(d) Instruments Instruments
Instruments like treasury like shares,
bill, debentures
commercial and bonds are
paper, traded in
certificates of Capital
deposit, call market.
money and
commercial bill
are traded in
money market.
45
OR
Q. Differentiate between Primary Market and

Secondary Market on the following basis:
(c) Location
Ans. Difference between Primary Market and
Secondary Market
1 mark for
Basis Primary Market Secondary each
Market correct
difference
(a)Company Securities are Ownership of
Involvement sold by the existing =1 x 4
company to the securities is = 4 marks
investors. exchanged
between
investors;
company is not
involved.
(b)Price Prices are Prices are
determinatio determined by determined by
n the management the forces of
of the company. demand and
supply of
securities.
(c) Location No fixed Located at
geographical specified places.
location.
Formation promotes promotes Capital
Capital formation.
formation.
16 19 1 Q. Mudit Gupta set up ‘Healthy Biscuits’, a
7 company manufacturing various kinds of
biscuits like oat biscuits, soya biscuits, ragi
biscuits and wholewheat biscuits. He knew
that a customer would only pick up a small
46
quantity of the product, so he did not want to
invest in starting his own retail outlets. He
planned to market the product at the ‘In and
Out’ stores at various petrol pumps in the city
though the other biscuit manufacturers were
Distribution’.
determination of choice of channels and state
how they will affect the determination of
choice of channels of distribution in the above
case.
Ans. (a) Channels of Distribution mean a set of
individuals and firms that take title, or assist in
1 mark
transferring title to particular goods or services
+
as it moves from the producers to the
consumers.
½ mark for
(b) Factors affecting determination of choice of
naming the
channels
factor
(i)Product related factors: Since the product is
+
a consumer product, its unit value is low and is
½ mark for
standardized, longer channels should be used.
stating the effect
(ii)Market related factor: Since the size of
=1x3
order of biscuits for ‘Healthy Biscuits’ was
=3 marks
small, large number of intermediaries were used.
=1+ 3
(iii)Competitive factor: The company decided
=4 marks
to be different from the choice of channel
selected by the competitors, so it decided to
market the product at the ‘In and Out’ stores at
various petrol pumps in the city.
SECTION D
1 stores in India with 56 outlets. It sells the best
products at the lowest price. The Human
Resource department takes care to select,
train, motivate and retain the employees.
47
Currently, it has 170 full time employees and
30 part time employees.
For top-level management, employees are
recruited through private consultants. These
professional recruiters can entice the needed
top executives from other companies by
making the right offers. Employees appointed
at the entry level are recruited through walk-
in. For that, a notice is placed on the notice
board specifying the details of the jobs
relatives to refer candidates. They also visit
some of the reputed educational institutions
to hire some of the most talented and
promising students as its employees.
‘Newrange’ shifts workforce from surplus
departments to those where there is shortage
of staff instead of laying them off.
Explain the various internal and external
sources of recruitment used by ‘Newrange’ to
recruit its employees.
Ans.Sources of recruitment used by ‘Newrange’
(i) Internal ½ mark for
• Transfers identifying
+
(ii) External ½ mark for
• Placement Agencies and Management explanation
Consultants = 1 mark
• Direct Recruitment
• Recommendations of Employees =1 x 5
= 5 marks
20 21 2 Q. Since childhood Niru and Janak had been
2 watching their grandmother procuring wheat
form the market, washing it well drying it
and getting it converted into atta. They
conducted a survey to collect data to identify
whether there is demand for readymade atta
48
and realised that with the growing number of
working women, it is the need of the hour to
manufacture high quality atta. They named
their product ‘Srijan’ and set up ‘Srijan Atta
Factory’ at Jaunpur Village. To penetrate in
the market, they decided to keep the price
low. For maintaining smooth flow of their
product into the market and avoiding delays
in delivery, it was decided to store wheat at
SKM Services which had scientific processes
and logistics facilitating quick delivery. They
also set up an online complaint portal to take
care of consumer grievances.
paragraph, state five marketing functions
undertaken by Niru and Janak for successful
marketing of ‘Srijan’ atta.
Ans. Marketing functions undertaken by Niru

and Janak:
(i) Gathering and analyzing market information
is necessary to identify the needs of the
customers and take various decisions for
successful marketing of products and services.
“They conducted a survey to collect data to

identify whether there is demand for
growing number of working women,it is the
need of the hour to manufacture high quality
atta.”

name/sign/symbol to the product in order to
distinguish the product from that of competitors.
1 mark for each
point along with
quoting
49
(iii)Pricing of product involves fixation of price = 1 x 5
of a product and taking various related decisions
like pricing strategies.
“To penetrate in the market, they decided to =5 marks
keep the price low.”
(iv) Storage or warehousing refers to arranging

for proper storage of goods to maintain smooth
flow of goods in the market and avoid delay in
delivery.
product into the market and avoiding delays in
delivery, it was decided to store wheat at SKM
Services which had scientific processes and
logistics facilitating quick delivery. ”
(v) Customer support Services aim at providing

maximum satisfaction to the customers for
developing brand loyalty for a product.
“They also set up an online complaint portal to
take care of consumer grievances.”
22 Q Explain any five characteristics of

management.
Ans. Characteristics of management (Any

five): ½ mark
(i) Goal oriented for naming
(ii) Pervasive
(iii) Multidimensional +
(iv) Continuous Process ½ mark
(v) Group activity for
(vi) Dynamic function explanation
(vii) Intangible force =1 x 5
(If an examinee has given only the heading, ½ =5 marks
mark for each heading should be awarded)
OR
Q What is meant by Coordination? Why is
50
coordination important in an organization?
Explain.
Meaning of Coordination
Coordination is the process by which activities 2mark
of different departments are synchronized to for
ensure unity of action. meaning
(or any other correct meaning) +
½ mark for
Importance of Coordination: naming
+
(i) Growth in size ½ mark for
explanation
(ii) Functional Differentiation =1 x 3
= 2+3
(iii) Specialisation = 5 marks
(If an examinee has given only the heading, ½

SECTION E
25 23 2 Q.Vishesh completed his MBA at a reputed
4 business school in Lucknow. He was
impressed by the Principles and Techniques
of Scientific Management developed by F.W.
Taylor. On completing his MBA, he wanted
to apply scientific Management in his family’s
increased output. To begin with, he wanted to
develop a standard method which would be
followed throughout the organisation. So, he
work study and unified the best practices.
51
The standard method, i.e. the best way of
doing the job was then developed taking into
account all parameters right from the
procurement of raw materials till the delivery
of the final product to the customer. Vishesh
also believed that each person should not only
be scientifically selected but should also be
efficiency. For this, he set up a Special
Training Unit called ‘Hamburger’ in
Bengaluru where the workers were given the
required training to increase efficiency. For
this, he set up a workers were given the
required training to learn the best method. At
the factory, the ingredients making up a
burger were strategically placed to reduce the
time taken for excess movements. The
standard time and other parameters were
determined on the basis of work study and
Vishesh rewarded the workers for meeting
the standard output.
product and working conditions that ensure
the food they send out to their customers has
the same high standards of excellence and
level of quality in every chain or franchise.
The application of Scientific Management to
every aspect of restaurant operations led to
‘’Burger Mania’s’ widespread success.
Quoting the lines from the above, explain the
Principles and Techniques of ‘Scientific
Management’ used by ‘Burger Mania’
Ans. The Principles and Techniques of

‘Scientific Management’ used by ‘Burger
Mania’ are:(Any six)
Principles of scientific management

• Science, not rule of thumb
52
“To begin with, he wanted to develop a
standard method which would be followed
throughout the organisation. So, he investigated
traditional methods through work study and
unified the best practices.”
• Development of each and every person to ½ mark

his/her greatest efficiency and prosperity for quoting
“Vishesh also believed that each person should the line
not only be scientifically selected but should +
also be given the required training to increase ½ mark for
efficiency.” explaining
the
Techniques of scientific management principle/
Method study technique
“The standard method, i.e. the best way of doing
the job was then developed taking into account 1x6
all parameters right from the procurement of
raw materials till the delivery of the final =
product to the customer.” 6 marks
Motion study
“At the factory, the ingredients making up a
burger were strategically placed to reduce the
time taken for excess movements.”
Time study
“The standard time and other parameters were
determined on the basis of work study

product and working conditions that ensure the
food they send out to their customers has the
same high standards of excellence and level of
quality in every chain or franchise.”
53
“Vishesh rewarded the workers for meeting the
standard output.”
(Full credit is to be given only if the examinee

has given the correct explanation also in the
answer)
24 Q Differentiate between Formal Organisation

and Informal Organisation on any six bases.
Ans.
Basis FORMAL INFORMAL
ORGANISAT ORGANISAT 1 x 6
ION ION
(i) Meaning Structure of Network of

authority social =6marks
relationships realationships
created by the arising out of
management. interaction of
employees.
(ii) Arises as a Arises as a
Origin result of result of social
company interaction
rules and
policies
(iii) Authority Authority
Authority arises by arises out of
virtue of personal
position in qualities.
management.
(iv) Flow Communicati Communicati
of on takes place on does not
communica through the take place
tion scalar chain. through a
planned route,
54
it can take
place in any
direction.
(v)Behavio Directed by No set
ur rules behavior
pattern
(vi)Nature Rigid Flexible
(vii)Leader Managers are Leaders may
ship leaders. or may not be
managers.
They are
chosen by the
group.
OR
Q Explain any four limitations of planning
Ans. Limitations of planning( any four):

(i)Leads to rigidity ½ mark for
(ii) May not work in a dynamic environment. each point
(iii) Reduces creativity +
(iv) Involves huge costs. 1 mark for
(v) Time consuming explanation
(vi)Does not guarantee success =1½ x4
= 6 marks
(If an examinee has given only the heading, ½
24 25 2 Q. Three friends, Rajat, Raman and Ansh,

3 after completing their MBA from a reputed
business school at Mumbai, were discussing
about the type of organisation they would like
to join. Rajat was very clear that he would
like to take up a government job as it gives
stability about the future income and work
which will help him to work with greater zeal.
It will also provide him pension when he will
retire from his service.
55
Raman wanted to work in a company, which
has appropriate skill development plans for
its employees and helps the employees to
grow to higher levels in the organisation. In
addition to this, the company should also
provide facilities like housing, medical aid,
etc.
Ansh said that he would prefer to work in an
organisation, which has the culture of
individual autonomy, is considerate to
employees and provides the employees with
opportunity for personal growth and a
meaningful work experience.
(a) Identify the various financial and non-
financial incentives discussed by the three
friends in the above conversation.
incentives which were not discussed by any
one of them.
Ans.(a) Financial and non-financial incentives
½ mark for each
incentive
conversation.
=½x6
(i) Financial incentives
=3 marks
• Retirement benefits
+
• Perquisites ½ mark for each
incentive
(ii) Non- Financial incentives +
• Job security ½ mark for its
• Career advancement opportunity explanation
• Status =1x3
= 3marks
(b)other non-financial incentives which were not
discussed by any one of them (any three) = 3+3 marks
• Job enrichment = 6 marks
• Employee recognition
• Employee participation
• Employee empowerment
56
..
…
BUSINESS STUDIES
66/4/3
66 66 66 MARKS
/4 /4 /4 EXPECTED ANSWERS / VALUE
/1 /2 /3 POINTS
SECTION A
1 Q. State any two reliefs available to the

consumer if the consumer court is
satisfied about the genuineness of the
complaint.
Ans. Reliefs available to a consumer under
the provisions of Consumer Protection Act,
1986 (Any two):
(i)To remove the defect in goods or the
deficiency in service.
(ii) To replace the defective product with a
new one, free from any defect. ½ mark for
(iii) To refund the price paid for the each point
product. =½ x 2
(iv) To pay a reasonable amount of 1 mark
compensation for any loss or injury suffered
by the consumer due to negligence of the
opposite party.
(v) To pay punitive damages in appropriate
circumstances.
(vi) To discontinue the unfair/ restrictive
trade practice and not to repeat the same in
future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw hazardous goods from
sale.
(ix) To cease manufacture of hazardous
goods.
(x) To pay any amount (not less than 5% of
the value of the defective goods)to be
credited to the Consumer Welfare Fund or
57
any other organisation/person, to be utilised
in the prescribed manner.
(xi) To issue corrective advertisement to
neutralize the effect of misleading
advertisement.
(xii) To pay adequate costs to the
appropriate party.
6 8 2 Q.Koby Ltd. is an 87-year-old reputed

consumer goods company. It is known
for offering good quality electronic
products at reasonable prices. It has
branches all over India. It has a large
shareholder base. The shareholders
desired that some dividend is paid every
year on their investments. Company’s
management understands that it is
important to keep the shareholders
happy and satisfied. As a matter of
policy, they declare a certain amount of
dividend every year out of profits rather
than reinvesting the whole as retained
earnings.
Identify the factor affecting dividend
decision being highlighted in the above
situation.
7 1 3 Q. Mahima Jain is the Senior Manager in

the Advisory Services Department of
Kodes Ltd. She regularly prepares
performance reports of her subordinates
as a part of the appraisal.
Identify the step of the controlling
process performed by her.
Ans. Measurement of actual performance 1 mark
8 2 4 Q.Ravi Jain was the Chief Executive
58
Officer of Nath Traders. He was worried
about the heavy expenditure on
advertising. He asked his Finance
Manager, MohitVerma to know the views
of the Sales Manager and his team
regarding this expenditure. MohitVerma
was thinking of calling a meeting of the
Sales Manager and his team after tea-
break. But by chance at the time of tea-
break, MohitVerma met with the Sales
Manager and his team in the canteen.
They all discussed about this expenditure
and finalised to give suggestion to reduce
this expenditure.
Identify the type of organisation which
helped the Finance Manager
MohitVerma, the sales Manager and his
team in finalising the suggestion
Ans. Informal Organisation 1 mark

relationships of their decisions and
actions so that the wastages associated
with a trial and error approach can be
overcome.
Identify the point of significance of
principles of management highlighted
here.

interlinked?
Ans. ‘Policies’ and ‘Procedures’ are
interlinkedas procedures are steps to be 1 mark
carried out within a broad policy framework
to enforce a policy.
OR OR
59
Q. What is meant by ‘Developing
Premises’ in the process of planning?
Ans. ‘Developing Premises’ in the process

of planning means making certain 1 mark
assumptions about future conditions which
are considered to be the base upon which
plans are to be drawn.
3 5 7 Q. Why is it said that Controlling is a


activity as it involves a constant review of 1 mark
actual performance to ensure that
organizational activities are performed as
per the plans.
OR OR

looking function?
1 mark
Ans. Controlling is called a forward looking
function because controlling seeks to
improve the future performance on the basis
of past experience.
8 Q. Define ‘Sales Promotion’.

Ans. Sales Promotion refers to the use of
short term incentives to persuade potential
buyers to purchase products immediately. 1 mark
OR OR
Q. What is meant by ‘Public Relations’?
Ans. Public relations means a tool of
promotion which involves a variety of
programmes designed to promote or protect
a company’s image and its individual
products in the eyes of the public. 1 mark
60
SECTION B
10 12 9 Q.KavitaGhai was the Managing
Director of a restaurant in Lucknow
called ‘Healthy Kitchen’. The restaurant
was doing well and the volume of work
started increasing slowly and steadily.
KavitaGhai was not able to manage all
the work on her own. The increasing
magnitude of work made it impractical
for her to handle it all by herself.
Lucknow and gave him the right to
command his subordinates and to take
action within the scope of his position.
For smooth running of the restaurant she
also gave him authority to hire and train
the staff as per the requirements.
KavitaGhai was satisfied with the work
of Nikhil Gupta and was able to open
other branches of the restaurant in Agra
and Kanpur also.
(a)Identify the concept followed by
KavitaGhai which helped her to open the
new branches of the restaurant.
(b)Also, explain briefly the two points of
importance of the concept identified in
(a) above
Ans. (a) Delegation of authority
(b) Importance of Delegation of authority : 1 mark

(any two) +
(i) Effective management ½ mark for
(ii) Employee development heading
(iii) Motivation of employees +
(iv) Facilitation of growth ½ mark for
61
(v) Basis of management hierarchy explan-
(vi) Better coordination. ation
1x2
(If an examinee has not given the =2 marks
headings as above but has given the = 1+2
correct explanation, full credit should be =3 marks
given)
11 13 10 Q.Explain with the help of any three

points how proper Financial Planning
enables the companies to tackle the
uncertainty in respect of availability and
timings of funds and helps in smooth
functioning of the organisation.
management to tackle the uncertainty in
respect of availability and timing of funds
and helps in smooth functioning of the
organization by: (any three)
(i)Helping in forecasting what may happen
in future, it makes the firm better prepared
to face the future situations.
(ii) Helping in avoiding business shocks 1 mark

and surprises and prepares the company for for each
it. point
=1 x 3
(iii) Helping in co-ordinating various
business functions by providing clear =3 marks
policies and procedures.

(v) Financial plan serves as a control

technique by making the evaluation of
actual performance easier.
(vi)Linking the present with the future.
62
(vii) Providing a link between investment
and financing decisions.
OR
Q.How do debt and equity differ in their

costs and risks involved? Explain.
Ans.Debt and Equity differ in their costs
and risks involved
Cost
• The cost of debt is lower than the cost
of equity for a firm because the
lender requires a lower rate of return 1 ½ marks
as his risk is lower than the equity
shareholder.
• Moreover, interest paid on debt is a +
tax deductible expense whereas
dividends are paid out of after-tax 1 ½ marks
profits.
=
Risk 3 marks
Debt is more risky for a business because
the payment of interest and the return of
principal amount are obligatory for the
business which increases the financial risk
of a company whereas there is no such
compulsion in case of equity, making it
riskless for the company.
11 Q. Does planning guarantee success?
Explain.
Ans. No, planning does not guarantee
success as:
• Managers have a tendency to rely on

previously tried and tested plans. But
a plan that has worked before may
not work again. 3 marks
• While planning, many unknown
63
factors have to be considered. The
false sense of security created by
planning may actually lead to failure
instead of success.
13 10 12 Q. Indian equity markets are going

through a phase of boom. There is a huge
growth potential for innovative
technologies. This has resulted in lots of
new ventures vying for a market share
and old enterprises trying to keep up
with the pace with which changes are
smaller businesses to compete on a global
scale.
highlighted above which affect the
working capital requirements of such
enterprises.
½ mark for
Ans. Factors affecting Working Capital identifying the
Requirements: factor
+
(i) Business Cycle ½ mark for its
(ii) Growth Prospects explanation
(iii) Level of competition =1 x 3
=3 marks
13 Q. Describe any three personal barriers

to effective communication.
Ans. Three personal barriers to effective

communication(any three) ½ mark for
(i)Fear of challenge to authority. naming the
(ii) Unwillingness to communicate. barrier
(iii) Lack of proper incentives
(iv) Lack of confidence of superior on his +
subordinates. ½ mark for its
explanation
64
(If an examinee has given only the =1 x 3
heading, ½ mark for each heading should =3 marks
be awarded)
OR OR
Q Describe ‘Autocratic style of

leadership’
Ans.(i) An autocratic leader gives orders
and expects his subordinates to obey those 1x3
orders. =
3 marks
(ii)There is one-way communication with
the subordinates who act according to the
command given by the manager.
(iii) Autocratic style is effective in ensuring

labour productivity and quick decision
making is facilitated.
SECTION C
19 16 14 Q.Financial market is a market for
creation and exchange of financial assets.
It helps to link the savers with the
investors and directs available funds into
their most productive investment
opportunity. It also facilitates easy
purchase and sale of financial assets
through the stock exchange. The stock
exchange not only facilitates buying and
selling of existing securities but also
educates public about how their
investments in the financial market can
yield good returns.
(a) State two functions performed by
financial market in the above case.
(b) Explain two more functions of the
65
stock exchange, other than those stated in
the above case.
Ans. (a) Functions performed by Financial
market: 1 mark for each
(i) It mobilises savings and channelises function
them into most productive use. =1x2
= 2 marks
(ii) It provides liquidity to financial assets
by facilitating easy purchase and sale of +
securities through stock exchanges. ½ mark for
naming the
(b) Functions of stock exchange, other than function
those stated in the above case(any +
two): ½ mark for its
(i) Pricing of securities explanation
(ii) Ensures safety of transactions =1x2
(iii) Contributes to economic growth = 2 marks
(iv) Provides scope for speculation
= 2 +2
(If an examinee has not given the = 4 marks
given)
14 17 15 Q.In an environment of rising petroleum

prices and a large middle class
population in India, KV Motors Ltd.
recognized the need for small cars in
India. It created a product far superior
than their competitors not only in terms
of quality but also in terms of overall
driving experience. It soon became the
leader in the small car market. As the
Indian government was encouraging
foreign investment, MNCs having a big
name in car manufacturing entered the
Indian market.
66
KV Motors further expanded its service ½ mark for
network and quality creating an entry each reform
barrier for the competitors. It depicted = 1 mark
its strengths through various brand-
building activities. As a result, the
market share of KV Motors is refusing to +
go down in spite of all major automakers
as its competitors. ½ mark for
(a) Identify the economic reforms quoting the
highlighted in the above case. line
+
(b) Quoting the lines, explain any two ½ mark for
points of importance of Business naming the
Environment being highlighted in the point of
above case. importance
+
Ans. (a)Liberalisation and Globalisation
½ mark for
explanation
(b)Importance of Business
=1 ½ x 2
Environment(any two)
= 3 marks
(i) It helps the firm to identify opportunities
=1 +3 marks
and get the first mover advantage.
=4 marks
“KV Motors Ltd. recognized the need for
small cars in India.”
(ii) It helps the firm in improving

performance.
“It created a product far superior than their

competitors not only in terms of quality but
also in terms of overall driving experience.
It soon became the leader in the small car
market.
(iii) It helps the firm in planning and policy

formulation.
67
barrier for the competitors. It depicted its
strengths through various brand-building
activities.”

15 18 16 Q. Differentiate between Money Market

and Capital Market on the following
basis:
(a) Expected return
(b) Safety
(c) Liquidity
(d) Instruments
Ans. Difference between Money Market
and Capital Market
Basis Money Market Capital
Market 1 mark for
each
(a) Money market Generally correct
Expected securities yield capital market difference
Return comparatively securities yield
less return. a higher return
=1 x 4
than money = 4 marks
market
instruments.
(b) Safety Money market Capital market
securities are securities are
comparatively riskier than
safer. money market
instruments.
(c) Money market Capital market
Liquidity securities are securities are
comparatively comparatively
more liquid. less liquid.
(d) Instruments like Instruments
Instruments treasury bill, like shares,
commercial debentures and
68
paper, bonds are
certificates of traded in
deposit, call Capital
money and market.
commercial bill
are traded in
money market.
OR
Q. Differentiate between Primary Market

and Secondary Market on the
following basis:
(c) Location
Ans. Difference between Primary Market
and Secondary Market
Basis Primary Secondary
Market Market
(a) Securities
Ownership
Company are sold by
of existing
Involvement the company
securities 1 mark for
to the is each
investors.
exchanged correct
between difference
investors; =1 x 4
company = 4 marks
is not
involved.
(b) Price Prices are Prices are
Determination determined determined
by the by the
management forces of
of the demand
company. and supply
69
of
securities.
(c) No fixed Located at
Location geographical specified
location. places.
Formation promotes promotes
Capital Capital
formation. formation.
16 19 17 Q.Mudit Gupta set up ‘Healthy Biscuits’,
a company manufacturing various kinds
of biscuits like oat biscuits, soya biscuits,
ragi biscuits and wholewheat biscuits. He
knew that a customer would only pick up
a small quantity of the product, so he did
not want to invest in starting his own
retail outlets. He planned to market the
product at the ‘In and Out’ stores at
various petrol pumps in the city though
the other biscuit manufacturers were
Distribution’.
determination of choice of channels and
state how they will affect the
determination of choice of channels of
distribution in the above case.
Ans. (a)Channels of Distribution mean a set
of individuals and firms that take title, or
assist in transferring title to particular goods
1 mark
or services as it moves from the producers
+
to the consumers.
½ mark for
(b) Factors affecting determination of
naming the
choice of channels
factor
(i)Product related factors: Since the
+
product is a consumer product, its unit value
½ mark for
70
is low and is standardized, longer channels stating the
should be used. effect
(ii)Market related factor: Since the size of =1x3
order of biscuits for ‘Healthy Biscuits’ was =3 marks
small, large number of intermediaries were =1+ 3
used. =4 marks
(iii)Competitive factor: The company
decided to be different from the choice of
channel selected by the competitors, so it
decided to market the product at the ‘In and
Out’ stores at various petrol pumps in the
city.
18 Q. Explain the following rights of a

consumer:
(a) Right to Choose; and
(b) Right to Consumer Education
Ans.
(a)Right to choose
• The consumer has the freedom to
choose from a variety of products at
competitive prices.
• Marketers should offer a wide variety of 2 marks
products in terms of quality, price, size
etc. to enable the consumer to make the
choice.
+
(b)Right to consumer education:
• Right to acquire knowledge and to be a
well informed consumer.
• Be aware about the rights and the 2 marks
reliefs available to him in case of a
product or service falling short of his
expectations. =4 marks
OR OR
Q. What is meant by ‘Consumer

Protection’? Explain any three points of
71
importance of consumer protection from
the business point of view.
Ans. Meaning of Consumer Protection:

Consumer protection means the act of
providing adequate protection to consumers 1 mark
against the unscrupulous, exploitative and
unfair trade practices of manufacturers and
service providers. +
Importance of consumer protection for

business: (Any three): ½ mark for
(i) Long-term interest of business. naming each
(ii) Business uses society’s resources. point
(iii) Social responsibility
(iv) Moral Justification +
(v) Government intervention. ½ mark for its
explanation
(If an examinee has given only the =1x 3
heading, ½ mark for each heading should = 1+3
be awarded) = 4 marks
18 15 19 Q.Vandana Public School had a vacancy

of a Maths teacher. They were looking
for a smart and creative teacher having a
drive for excellence. An advertisement
was given in all leading dailies. Since the
response was huge, the school examined
all the application forms and rejected the
candidates who did not have the
necessary qualifications. Thereafter, a
test was conducted to measure the
existing skills of the candidates. After
that it was followed by a formal in-depth
conversation with the Principal of the
school and a panel of Maths experts.
performed by Vandana Public School in
72
the process of identifying and choosing
the best candidate.
(b) Give the name and also the meaning
of the test which was conducted by the
school.
Ans.
(a) Steps performed by Vandana Public
School in the process of identifying and ½ mark
choosing the best candidate: for naming
the step
(i) Preliminary Screening +
½ mark for its
(ii) Selection Tests explanation
=1 x 3
(iii) Employment Interview =3 marks
+
(b) Trade test was conducted by the school ½ mark for
to measure the existing skills possessed naming the test
by the candidates. +
½ mark for its
meaning
=1 mark
= 3+ 1 marks
4 marks
SECTION D
20 Q. Management seeks to achieve various
objectives. Explain these objectives.
Ans. Management seeks to achieve various

objectives. These are:
(i) Organisational objectives: The main
objective of any organization should be to
utilize human and material resources to the
maximum possible advantage to fulfill the 2 marks
economic objectives of a business
(a) Survival- Management must strive to +
earn enough revenues to cover cost for the
survival of the business.
73
(b) Profit- Management has to ensure that
business earns profit which is essential for
covering cost and risk of the business.
(c) Growth- Management must exploit
fully the growth potential of the
organization to remain in the industry.
(ii) Social objectives: It involves the

creation of economic value for various 1 ½ marks
constituents of society like using
environmental friendly methods of
production, etc.
+
(iii) Personal objectives: Management
aims to reconcile personal goals with 1 ½ marks
organizational objectives for harmony in the
organisation. =5 marks
OR
Q. ‘ Co-ordination is the orderly
arrangement of group efforts to provide
unity of action in the pursuit of common
purpose.’ In the light of this statement,
explain any five points of importance of
coordination.
Ans. Importance of coordination:

1. As organizations grow in size, the
number of people employed by the
organization increases. Hence
coordination is needed to integrate their
efforts and activities.
2. Individuals differ in their habits of 1x5
work, needs and behavior and may = 5 marks
have their own individual goals.
Coordination is necessary to harmonize
individual goals and organizational
goals. Coordination ensures that all
individuals work towards the common
goals of the organization.
74
3. Functions of organization are divided
into departments /divisions of
finance, production, marketing or
human resources. All these departments
are dependent on each other.
Coordination links the activities of
various departments to focus on
attainment of common goals.
4. Coordination is the force that binds all
the functions of management. The
process of coordinating the activities of
an organization begins at the planning
stage and continues till controlling.
5. Modern organizations have high degree
of specialization and employ a number
of specialists. This leads to conflict as
some specialists do not like to take
advice or suggestions from others.
Coordination is required to reconcile
their differences.
(If the examinee has stated all the above
points in the following three headings (i)
Growth in size; (ii) Functional
differentiation (iii) Specialisation, full
credit is to be given.)
stores in India with 56 outlets. It sells the
best products at the lowest price. The
Human Resource department takes care
to select, train, motivate and retain the
employees. Currently, it has 170 full time
employees and 30 part time employees.
For top-level management, employees are
recruited through private consultants.
These professional recruiters can entice
the needed top executives from other
companies by making the right offers.
Employees appointed at the entry level
are recruited through walk-in. For that, a
75
notice is placed on the notice board
specifying the details of the jobs
relatives to refer candidates. They also
visit some of the reputed educational
institutions to hire some of the most
talented and promising students as its
employees.
‘Newrange’ shifts workforce from
surplus departments to those where there
is shortage of staff instead of laying them
off.
Explain the various internal and external
sources of recruitment used by
‘Newrange’ to recruit its employees.
Ans.Sources of recruitment used by

‘Newrange’ ½ mark for
(i) Internal identifying
• Transfers +
½ mark for
(ii) External explanation
• Placement Agencies and Management
Consultants = 1 mark
• Direct Recruitment
• Recommendations of Employees =1 x 5
= 5 marks
20 21 22 Q. Since childhood Niru and Janak had
been watching their grandmother
procuring wheat form the market,
washing it well drying it and getting it
converted into atta. They conducted a
survey to collect data to identify whether
there is demand for readymade atta and
realised that with the growing number of
working women, it is the need of the hour
to manufacture high quality atta. They
76
named their product ‘Srijan’ and set up
‘Srijan Atta Factory’ at Jaunpur Village.
To penetrate in the market, they decided
to keep the price low. For maintaining
smooth flow of their product into the
market and avoiding delays in delivery, it
was decided to store wheat at SKM
Services which had scientific processes
and logistics facilitating quick delivery.
They also set up an online complaint
grievances.
paragraph, state five marketing functions
undertaken by Niru and Janak for
successful marketing of ‘Srijan’ atta.
Ans. Marketing functions undertaken by

Niru and Janak:
(i) Gathering and analyzing market
information is necessary to identify the
needs of the customers and take various
decisions for successful marketing of
products and services.
“They conducted a survey to collect data

to identify whether there is demand for
growing number of working women,it is
the need of the hour to manufacture high
quality atta.”
1 mark for each
point along
with quoting
name/sign/symbol to the product in order to
distinguish the product from that of
= 1 x 5
competitors.
77
=5 marks
(iii)Pricing of product involves fixation of

price of a product and taking various related
decisions like pricing strategies.
“To penetrate in the market, they
decided to keep the price low.”
(iv) Storage or warehousing refers to

arranging for proper storage of goods to
maintain smooth flow of goods in the
market and avoid delay in delivery.
facilitating quick delivery. ”
(v) Customer support Services aim at

providing maximum satisfaction to the
customers for developing brand loyalty for
a product.
“They also set up an online complaint
grievances.”
SECTION E
24 25 23 Q. Three friends, Rajat, Raman and
Ansh, after completing their MBA from a
reputed business school at Mumbai, were
discussing about the type of organisation
they would like to join. Rajat was very
clear that he would like to take up a
government job as it gives stability about
the future income and work which will
help him to work with greater zeal. It will
also provide him pension when he will
retire from his service.
Raman wanted to work in a company,
78
which has appropriate skill development
plans for its employees and helps the
employees to grow to higher levels in the
organisation. In addition to this, the
company should also provide facilities
like housing, medical aid, etc.
Ansh said that he would prefer to work
in an organisation, which has the culture
of individual autonomy, is considerate to
employees and provides the employees
with opportunity for personal growth
and a meaningful work experience.
(a) Identify the various financial and
non-financial incentives discussed by the
three friends in the above conversation.
incentives which were not discussed by
any one of them.
Ans.Financial and non-financial incentives
conversation.
½ mark for
(a) Financial incentives
each
• Retirement benefits
incentive
• Perquisites =½ x6
=3 marks
(b) Non- Financial incentives
• Job security
• Career advancement opportunity +
• Status
(b)Other non-financial incentives which

were not discussed by any one of them (any ½ mark
three) for each
• Job enrichment incentive
• Employee recognition +
• Employee participation ½ mark for
• Employee empowerment its
79
explanation
=1x3
= 3marks
= 3+3 marks
= 6 marks
25 23 24 Q.Vishesh completed his MBA at a
reputed business school in Lucknow. He
was impressed by the Principles and
Techniques of Scientific Management
developed by F.W. Taylor. On
completing his MBA, he wanted to apply
scientific Management in his family’s
increased output. To begin with, he
wanted to develop a standard method
which would be followed throughout the
organisation. So, he investigated
traditional methods through work study
and unified the best practices. The
standard method, i.e. the best way of
into account all parameters right from
the procurement of raw materials till the
customer. Vishesh also believed that each
person should not only be scientifically
selected but should also be given the
required training to increase efficiency.
For this, he set up a Special Training
Unit called ‘Hamburger’ in Bengaluru
where the workers were given the
required training to increase efficiency.
For this, he set up a workers were given
the required training to learn the best
method. At the factory, the ingredients
making up a burger were strategically
80
placed to reduce the time taken for excess
movements. The standard time and other
parameters were determined on the basis
of work study and Vishesh rewarded the
workers for meeting the standard output.
product and working conditions that
ensure the food they send out to their
customers has the same high standards of
excellence and level of quality in every
chain or franchise.
The application of Scientific
Management to every aspect of
restaurant operations led to ‘’Burger
Mania’s’ widespread success.
Quoting the lines from the above, explain
the Principles and Techniques of
Mania’
Ans. The Principles and Techniques of

Mania’ are:(Any six)
Principles of scientific management

• Science, not rule of thumb
“To begin with, he wanted to develop a
standard method which would be followed
throughout the organisation. So, he
work study and unified the best practices.”
½ mark for
• Development of each and every person to quoting the line
his/her greatest efficiency and prosperity +
“Vishesh also believed that each person ½ mark for
should not only be scientifically selected explaining the
but should also be given the required principle/
training to increase efficiency.” technique
81
Techniques of scientific management 1x6
Method study
“The standard method, i.e. the best way of =
doing the job was then developed taking 6 marks
into account all parameters right from the
procurement of raw materials till the
customer.”
Motion study
“At the factory, the ingredients making up a
burger were strategically placed to reduce
the time taken for excess movements.”
Time study
“The standard time and other parameters
were determined on the basis of work study

product and working conditions that ensure
the food they send out to their customers
has the same high standards of excellence
and level of quality in every chain or
franchise.”

“Vishesh rewarded the workers for meeting
the standard output.”

25 Q. Explain the steps in the planning

process after ‘identifying alternative
courses of action’.
82
Ans. Steps in the process of planning other ½ mark
than ‘identifying alternative courses of for naming
action’: the step
+
-Evaluating alternative courses. 1mark for
-Selecting an alternative. its
-Implementing the plan. explanation
-Follow-up action =
1 ½ x4
(If the examinee has not followed the =
sequence of the process ½ mark be 6 marks
deducted)
OR OR
Q.’ The process of Organising involves a

series of steps in order to achieve the
desired goals’. Explain these steps.
Ans. Steps in the process of Organising:
(i) Identification and division of work. ½ mark for

naming
(ii) Departmentalisation. the step
+
(iii) Assignment of duties. 1mark for
its
(iv) Establishing reporting relationships explanation
= 1 ½ x4
(If the examinee has not followed the =6 marks
sequence of the process ½ mark be
deducted)
83

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Senior School Certificate Examination

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

2 4 6 Q. How are ‘Policies’ and ‘Procedures’

Q. What is meant by ‘Developing

Ans.‘Developing Premises’ in the process

3 5 7 Q.Why is it said that Controlling is a

Q. Why is Controlling called a forward

4 - - Q. State any one function performed by

(i) Educating the general public about

(ii) Publishing periodicals and other

(iii) Carrying out comparative testing of

(v) Providing legal assistance to consumers

(vi) Filing complaints in appropriate

(vii) Taking initiative in filing cases in

5 - - Q. What is the meant by ‘Packaging’?

Q. State any one quality of a good

Ans. Qualities of a good salesman: (Any

7 1 3 Q. Mahima Jain is the Senior Manager

Ans. Measurement of actual performance 1 mark

8 2 4 Q. Ravi Jain was the Chief Executive

Ans. Informal Organisation 1 mark

(If an examinee has not given the

Q.Explain with the help of an example

Ans. Management by Exception

• It is based on the belief that an attempt to =3 marks

10 12 9 Q.Kavita Ghai was the Managing

Ans. (a) Delegation of authority 1 mark

(b) Importance of Delegation of authority: +

11 13 10 Q.Explain with the help of any three

(i) Helping in forecasting what may

(iv) Detailed plans of action reduce waste,

(vi) Linking the present with the future.

(vii) Providing a link between investment

Q. How do debt and equity differ in

Ans. Debt and Equity differ in their costs

12 - - Q. How is ‘planning a pervasive

13 10 12 Q. Indian equity markets are going

Ans. Factors affecting Working Capital

(i) It helps the firm to identify ½ mark for

“KV Motors further expanded its service

(Full credit is to be given only if the

15 18 16 Q. Differentiate between Money Market

(a) Money market Generally

Q. Differentiate between Primary

(a) Securities areOwnership of

(b) Factors affecting determination of

17 - - Q.Explain any four points of importance

Q.Describe the following rights of a

(b) Right to Safety

18 15 19 Q.Vandana Public School had a vacancy

(If an examinee has not given the

Ans. Marketing functions undertaken by

“They conducted a survey to collect data

(iii)Pricing of product involves fixation of

(iv) Storage or warehousing refers to

(v) Customer support Services aim at

21 - - Q. Explain any five characteristics of co-

(If an examinee has not given the = 5 marks

Q.Explain any five points of importance

(If an examinee has not given the

Ans. Sources of recruitment used by

23 - - Q. Differentiate between ‘Functional