SET – 3

H$moS> Z§.
Series : GBM/C
Code No. 66/3
 .    -  -
Roll No.    
Candidates must write the Code on
the title page of the answer-book.
•       -    12  
• -            -  -   
•       -  25   
•         ,      
•  -     15        -     10.15 
   10.15   10.30     -        
-      
• Please check that this question paper contains 12 printed pages.
• Code number given on the right hand side of the question paper should be written on the
title page of the answer-book by the candidate.
• Please check that this question paper contains 25 questions.
• Please write down the Serial Number of the question before attempting it.
• 15 minute time has been allotted to read this question paper. The question paper will be
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the students will read the
question paper only and will not write any answer on the answer-book during this period.

 
BUSINESS STUDIES

  : 3    : 80

Time allowed : 3 hours Maximum Marks : 80

66/3 1 [P.T.O.
  :
(i) 1             
(ii) 3      50-
50-75    
(iii) 4-5       150    
(iv) 6       200    
(v)      -    

General Instructions :
(i) Answers to questions carrying 1 mark may be from one word to one sentence.
(ii) Answers to questions carrying 3 marks may be from 50-75 words.
(iii) Answers to questions carrying 4-5 marks may be about 150 words.
(iv) Answers to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a questions together.

1. ‘    ’       k      
               
         k       
                 
           
            1

On the introduction of ‘Goods and Services Tax Act’, experts in the field of business
started analysing and forecasting its impact on various sectors and industries. Arun, an
established businessman, attended a few seminars and conferences organised by such
experts to familiarize himself with this information. He wanted to use these forecasts
and conjectures to reduce the uncertainty in making decisions for the future in his
business.
Name the step in the planning process that is being discussed in the above paragraph.

66/3 2
2.                ? 
  1
How do principles of management provide managers with useful insights in real world
situations ? State.

3.          k       
                 k
             ,  
                
  
k                
  1
Seema, a student of management likes to relate what she learnt in class to real life
situations. She observed many situations while watching educational programmes on
television that reminded her the concepts of Scientific Management. In one such
programme, factories manufacturing components for products like automobiles,
computers and mobile phones were shown.
Name the concept of Scientific Management that should be adhered to, while
manufacturing components for such products.

4.      1

Give the meaning of leadership.

5.       ,        
             
   
             1
Amar, the marketing manager of Narmada Garments Ltd. allows the salesmen working
under him to freely express their frank opinion and feelings regarding work related
matters before him.
Identify the organisational barrier to communication that has been overcome because
of Amar’s behaviour.

66/3 3 [P.T.O.
6. ‘  (
 ) ’     ? 1

What is meant by a ‘Treasury Bill’ ?

7. ‘   ’           
 ?    1

How does ‘availability of raw material’ affect the working capital requirement of an
enterprise ? State.

8.                    
                    
                
               
               1

Satvik is the finance manager of Mars Ltd. He is facing difficulty in deciding the
amount of profit earned by the company that should be distributed as dividend to the
shareholders. In the current year the company earned high profit. However, Satvik
thinks that it is better to declare higher dividend as he is sure about the earning
potential of the company in the coming years.

Name the factor that affected Satvik’s choice regarding dividend decision.

9.       :

(i)  ; 
(ii)   ( )  3

Explain the following methods of training :

(i) Vestibule Training; and
(ii) Internship Training.

66/3 4
10.         , ,     
              
                 
       “    ”         
   (...)          
                  
                   
                3
After completing her studies in product design, Sarah wishes to start her own business
to design products to cater to the mobility and communication requirements of persons
with special needs. She told her friend that she wanted to focus on supplying high
quality and affordable products on “no profit - no loss basis”. The Unique Selling
Proposition (U.S.P.) of the products will be sensitivity to the challenges and needs of
the differently abled. She has to follow a series of steps to attain her predetermined
objectives.
In the above lines, Sarah has discussed about one of the functions of management.
Identify the function and state its steps in chronological order other than the one
discussed in the above para.

11.             3

State any three limitations of external sources of recruitment.

12.    ‘ ’  ‘ ’    :
(i) ;
(ii) ; 
(iii)   3

Differentiate between ‘Capital Market’ and ‘Money market’ on the basis of :

(i) Participants;
(ii) Instruments; and
(iii) Safety.

66/3 5 [P.T.O.
13.                  
       :             
,                   
                 
             
          3
Miracle Ltd. deals in the sale of stationery and office furniture. They source the
finished products from reputed brands who give them four to six months credit.
Because of increase in the demand for electronic items, they are planning to sell these
items also. For this, they have decided to join hands with a Japanese electronic goods
manufacturer, to open sales outlets throughout India.
State any three factors affecting working capital requirement of Miracle Ltd. other
than the factors discussed above.

14.      -         
                   
       ,    ,     
-, -           
  (. .)           ,
 ,               
               
              
      

(i)              

(ii)               4

Vindhya Ayurved Ltd., a new and leading manufacturer of herbal and ayurvedic
medicines and grocery products has captured a large share of the market in a short
span of time. The Research and Development (R & D) department of the company

66/3 6
 spends considerable time and effort in developing eco-friendly, chemical-free and
healthy alternatives for a variety of products of daily use, from toothpaste to biscuits,
instant noodles to soaps, shampoos and detergents etc. Their business orientation
differs from competitors who are short-sighted and want to maximize profit by
maximising sales. Instead Vindhya Ayurved considers maximization of profit by
understanding needs and wants of customers in the target market and development of
products or services for satisfying such needs and wants.

(i) Identify and explain the marketing management philosophy adopted by Vindhya
Ayurved Ltd.

(ii) State any two values that are being promoted by the company.

15.             k      
              -,  
,       
(i)                     
 
(ii)                
  4

Reema is one of the most successful managers of her company, Globe Ltd. She knows
that the principles of management are intended to apply to all types of organisations,
business as well as non-business, small as well as large, public sector as well as private
sector.

(i) One of the points related to the nature of management principles is being
highlighted in the above description. Identify the point.

(ii) Explain any three other points of the nature of principles of management other
than the one identified above.

66/3 7 [P.T.O.
16.                  
                 
    ,             
                   k
          

                 4

Mr. Raman is the human resource manager of Shanti Hospital in Nellore. He has to
appoint nurses for the hospital. For this he has conducted preliminary interviews.
Since patients in the hospital are of different types, he has also conducted tests to find
out the candidates’ maturity and emotions in dealing with the patients. He has also
conducted tests to know about the candidates’ ability to take decisions.

Explain the remaining steps that Mr. Raman should take to complete the selection
process.

17.           4

State any four advantages of formal organization.

18.                
‘  ’  ‘  ’    4
Explain ‘Critical Point Control’ and ‘Management by Exception’ used by managers
while analysing deviations in the process of controlling.

19.                 
              
                
-             
                
               4
66/3 8
 Irma is the chief executive officer of a reputed company. She introduced appropriate
skill development programmers and a sound promotion policy for the employees of
her company. To motivate and retain the best talent in the company, she designed the
jobs of the managers to include greater variety of work content.
Explain any two other incentives that may be introduced by Irma other than those
already introduced by her to further motivate the employees of her company.

20.                    
                    20 
                 
   5
Shivam bought a pain relieving ointment after seeing it being displayed in the
chemist’s shop. The ointment tube was packed in a cardboard box. The tubes were
received by the chemist from the wholeseller in corrugated boxes containing 20 units.
Identify and explain the different levels of packaging of the pain relieving medicine.

21.    k  ?   5

Is management a science ? Explain.

22.    -  (...)      
,               
            ,  , , , , 
              -
,                   
                   
         ,    ,   
,               
        -   k     
      

66/3 9 [P.T.O.
                 
                
        ,    ,     
     

(i)      ‘k ’  ‘ ’   -
      

(ii)                
      5

Sakaar Foundation is an NGO (Non-Governmental Organization) working to improve

the lives of children with medical needs, the homeless and victims of natural disasters.
Apart from donations in cash, they collect dry ration, old clothes, shoes, toys, books,
medicines etc. from donors. At Sakaar Foundation’s office in Lucknow the material
collected is segregated, classified and put in shelves and boxes that are labelled
systematically. There is a specific place for each of these items and volunteers put
everything at their respective places.

The volunteer work is divided into specific jobs like fund raising, field visits, social
media updates and so on. Each volunteer is part of a particular team, depending on
their competency and training. Each volunteer becomes specialized in their respective
field, leading to efficient utilization of human effort.

The management of Sakaar Foundation does not close its ears to any constructive
suggestions made by the volunteers. There is an equal division of work and
responsibility between volunteers and management. All the day long the management
work side by side with the volunteers helping, encouraging and smoothing the way for
them.

(i) Identify and explain one principle each of ‘Scientific Management’ and ‘General
Management’ adopted by Sakaar Foundation.

(ii) State any two values that Sakaar Foundation is displaying and promoting in
society through their work.
66/3 10
23.     ,           

                    

                   

           ,       

,                 

    ,            

         , :       

   

(i)             

(ii)                6

Radha is an enterprising businesswoman who has been running a fishery for the past

ten years. She has saved ` 10 Lakhs from her business. She shared with her family her

desire to utilize this money to expand her business. Her family members gave her

different suggestions like buying new machinery to replace the existing one, acquiring

altogether new equipment with latest technology, opening a new branch of the fishery

in another village and so on. Since these decisions are crucial for her business, involve

huge amount of money and are irreversible except at a huge cost, Radha wants to

analyse all aspects of the decision, before taking any step.

(i) Identify and explain the financial decision to be taken by Radha.

(ii) Also explain briefly any two factors that affect this decision.

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24.    ,          
           
(i)        .....      
        
(ii)          
(iii)                 6

Explain any two reliefs that the Consumer Court can grant to consumers in case of
genuine complaints in each of the following situations.

(i) Komal was charged more than the printed price for a NCERT business studies
book being in short supply.

(ii) Kumar was sold a truck with a defective engine.

(iii) Suresh suffered injury while using a newly bought defective electric iron.

25. ‘                    
   ’              6

‘The divisional structure of organization has certain advantages and disadvantages

which an enterprise must take into consideration before adopting it.’ Explain any such
three advantages and any three disadvantages of this structure.
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