-Strictly Confidential: (For Internal and Restricted Use Only)

Senior School Certificate Examination

March -----2024
Marking Scheme---Business Studies 66/5/3
General Instructions:
1 You are aware that evaluation is the most important process in the actual and correct
assessment of the candidates. A small mistake 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.
2 “Evaluation policy is a confidential policy as it is related to the confidentiality of the
examinations conducted, Evaluation done and several other aspects. Its’ leakage to
public in any manner could lead to derailment of the examination system and affect
the life and future of millions of candidates. Sharing this policy/document to anyone,
publishing in any magazine and printing in News Paper/Website etc may invite action
under various rules of the Board and IPC.”
3 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/or are innovative,
they may be assessed for their correctness otherwise and due marks be awarded to
them. In class -XII, while evaluating two competency based questions, please try to
understand given answer and even if reply is not from marking scheme but correct
competency is enumerated by the candidate due marks should be awarded.
4 The Marking scheme carries only suggested value points for the answers
These are in the nature of Guidelines only and do not constitute the complete answer. The
students can have their own expression and if the expression is correct, the due marks
should be awarded accordingly.
5 The Head-Examiner must go through the first five answer books evaluated by each
evaluator on the first day, to ensure that evaluation has been carried out as per the
instructions given in the Marking Scheme. If there is any variation, the same should be zero
after deliberation and discussion. The remaining answer books meant for evaluation shall
be given only after ensuring that there is no significant variation in the marking of
individual evaluators.
6 Evaluators will mark( √ ) wherever answer is correct. For wrong answer CROSS ‘X” be
marked. Evaluators will not put right (✓)while evaluating which gives an impression that
answer is correct and no marks are awarded. This is most common mistake which
evaluators are committing.
7 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 totaled up and written in the left-
hand margin and encircled. This may be followed strictly.
1
8 If a question does not have any parts, marks must be awarded in the left-hand margin and
encircled. This may also be followed strictly.
9 If a student has attempted an extra question, answer of the question deserving more marks
should be retained and the other answer scored out with a note “Extra Question”.
10 No marks to be deducted for the cumulative effect of an error. It should be penalized only
once.
11 A full scale of marks 80 as given in Question Paper has to be used. Please do not hesitate to
award full marks if the answer deserves it.
12 Every examiner has to necessarily do evaluation work for full working hours i.e., 8 hours
every day and evaluate 20 answer books per day in main subjects and 25 answer books per
day in other subjects (Details are given in Spot Guidelines). This is in view of the reduced
syllabus and number of questions in question paper.
13 Ensure that you do not make the following common types of errors committed by the
Examiner in the past:-
● Leaving answer or part thereof unassessed in an answer book.
● Giving more marks for an answer than assigned to it.
● Wrong totaling of marks awarded on an answer.
● Wrong transfer of marks from the inside pages of the answer book to the title page.
● Wrong question wise totaling on the title page.
● Wrong totaling of marks of the two columns on the title page.
● Wrong grand total.
● Marks in words and figures not tallying/not same.
● Wrong transfer of marks from the answer book to online award list.
● Answers marked as correct, but marks not awarded. (Ensure that the right tick mark is
correctly and clearly indicated. It should merely be a line. Same is with the X for
incorrect answer.)
● Half or a part of answer marked correct and the rest as wrong, but no marks awarded.
14 While evaluating the answer books if the answer is found to be totally incorrect, it should
be marked as cross (X) and awarded zero (0)Marks
15 Any unassessed portion, non-carrying over of marks to the title page, or totaling error
detected by the candidate shall damage the prestige of all the personnel engaged in the
evaluation work as also of the Board. Hence, in order to uphold the prestige of all
concerned, it is again reiterated that the instructions be followed meticulously and
judiciously
16 The Examiners should acquaint themselves with the guidelines given in the “Guidelines
for spot Evaluation” before starting the actual evaluation.
17 Every Examiner shall also ensure that all the answers are evaluated, marks carried over to
the title page, correctly totaled and written in figures and words.
18 The candidates are entitled to obtain photocopy of the Answer Book on request on payment
of the prescribed processing fee. All Examiners/Additional Head 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
.
6 MARKING SCHEME- 66/5/3
6
/5 BUSINESS STUDIES (054)
/3
EXPECTED ANSWERS / VALUE POINTS

SECTION A

1 Q. Naman and Vineet were childhood friends and both were working in
'Sunshine Crockery. Naman was working as the Chief Executive Officer
while Vineet was the Production Manager. They would generally discuss
company related issues over lunch-time or while travelling together.
The company had recently received an order for supply of 5,000 dinner
sets from Shaurya Hotel. It was an unexpected order and would increase
the revenue of the company. This order was communicated by Naman to
Vineet over intercom. Vineet executed the order within the given time
period. For this, he was appreciated by Naman.
The type of communication used by Naman to communicate the order to
Vineet was:
(A) Formal Communication
(B) Informal Communication
(C) Online Communication
(D) Visual Communication

1
Ans. (A) Formal communication mark

2 Q. 'Vanguard Inc.', a company manufacturing footwear for men, women

and children has been earning consistent profits for the last many years. It
has a democratic style of working. Workers are encouraged to develop
and carry out plans for improvement in the organisation. Varun who is
working in the production department gave a suggestion which resulted in
10% reduction in the cost of production of shoes. He was rewarded for his
suggestion. Identify the principle of management followed by 'Vanguard
Inc.' in the above case:
(A) Esprit De Corps
(B) Subordination of Individual Interest to General Interest
(C) Initiative

3
 (D) Equity

Ans. (C) Initiative 1

mark

3 Q. Statement-I: Motivation can be either positive or negative.

Statement-II: Motivation is a complex process as the individuals are
heterogeneous in their expectations, perceptions and reactions.
Choose the correct option from the following:
(A) Statement-I is true and Statement-II is false.
(B) Statement-II is true and Statement-I is false.
(C) Both the Statements are true.
(D) Both the Statements are false.

1
Ans. (C) Both the statements are true. mark

4 Q. 'Child-O' is a garment manufacturing company which makes clothes

with unique and stylish designs for children. Naisha was working as the
Human Resource Manager with 'Child-O'. Inspite of good pay and many
other benefits offered, the company is facing problem of high turnover of
its employees. Naisha tried to find out the reason but could not. She
appointed a person with the permission of the Chief Executive Officer to
find out the reason. It was found that other organisations were giving
more autonomy and authority to their employees which made them feel
that their jobs were important.
This was attracting the employees of 'Child-O' to other organisations. The
incentive which attracted the employees of Child-O' to other organisations
is:
(A) Employee Recognition programmes
(B) Employee Participation
(C) Career Advancement Opportunity
(D) Employee Empowerment

1
Ans. (D) Employee Empowerment mark

4
5 Q. Read the following statements:

Assertion (A) and Reason (R). Choose the correct alternative from those
given below:
Assertion (A): Availability of leasing facilities may reduce the funds
required to be invested in fixed assets thereby reducing the fixed capital
requirements.
Reason (R): When an asset is taken on lease, the firm pays lease rentals to
use it and avoids to invest huge sums required to purchase it.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the
correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true but Reason (R) is not the
correct explanation of Assertion (A).
(C) Assertion (A) is true but Reason (R) is false.
(D) Assertion (A) is false but Reason (R) is true.

Ans. (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the 1
correct explanation of Assertion (A) mark

6 Q. Which of the following is NOT a factor affecting 'financing decision'?

(A) Fixed operating costs
(B) Cash flow position
(C) Control considerations
(D) Diversification

Ans. (D) Diversification 1

mark

7 Q. Which of the following is the function of Top level management?

(A) They ensure that their department has the necessary personnel.
(B) They interact with the actual work force and pass on instructions of
the middle management to the workers.

5
 (C) They co-operate with other departments for smooth functioning of
the organisation.
(D) They analyse the business environment and its implications for the
survival of the firm.

Ans. (D) They analyse the business environment and its implications for the 1
survival of the firm mark

8 Q. Choose the incorrect statement about 'Money market':

(A) The main instruments traded in this market are Treasury bills, Trade
bills, Commercial paper and Certificates of deposit.
(B) In this market, transactions entail huge sums of money as the
instruments are quite expensive.
(C) Participation in this market is by and large undertaken by
institutional participants such as the Reserve Bank of India, banks,
financial institutions and finance companies.
(D) It deals in medium and long term securities.

1
Ans. (D) It deals in medium and long term securities mark

9 Q. ‘Kanand Ltd.’ is an automobile manufacturing company started in

2014 under 'Make in India' initiative of the Government of India.
Expecting higher growth in future, it developed higher capacity in the
current year taking advantage of the subsidies provided by the
government. This would enable ‘Kanand Ltd.' to meet anticipated higher
demand quickly, For this, ‘Kanand Ltd.’ invested large amounts in fixed
assets leading to higher requirements of fixed capital. Identify the factor
affecting fixed capital requirements which 'Kanand Ltd.' kept in mind to
meet higher anticipated demand quicker.
(A) Scale of operations
(B) Nature of business
(C) Diversification
(D) Growth prospects

6
 Ans. (D) Growth prospects 1
mark

1 Q. Identify from the following what is shown in the picture of refrigerator

0 given below?
(A) Brand name
(B) Brand mark
(C) Trademark
(D) Label

1
Ans. (D) Label mark

1 Q. ‘Since business environment consists of numerous interrelated and

1 dynamic conditions or forces which arise from different sources, it
becomes difficult to comprehend at once what exactly constitutes a given
environment'. Thus it is relatively easier to understand the environment in
parts but difficult to grasp in its totality. Identify the feature of business
environment highlighted above:
(A) Uncertainty
(B) Complexity
(C) Relativity
(D) Dynamic nature

1
Ans. (B) Complexity mark

7
1 Q. For holding securities in an electronic form, the investor has to open a
2 demat account with an organisation called __________.
(A) Depository
(B) Securities and Exchange Board of India
(C) Stock Exchange
(D) Mutual Fund

1
Ans. (A) Depository mark

1 Q. The activities involved in managing the enterprise are common to all

3 organisations whether economic, political or social. Identify the feature of
management:
(A) Management is multidimensional.
(B) Management is all pervasive.
(C) Management is a continuous process.
(D) Management is a dynamic function.

1
Ans. (B) Management is all pervasive mark

1 Q. Match the terms given in Column I with their meaning in Column-II.

4
Column-I Column-II
a. Trademark (i) A name, term, sign, symbol, design or some
combination of them used to identify the products
and differentiate them from the competitors.

b. Brand (ii) A brand or a part of the brand that is given legal

name protection.

c. Brand (iii) That part of the brand which can be recognised

but which is not utterable.

8
 d. Brand (iv) That part of the brand which can be spoken.
mark

Choose the correct option from the following:

a b c d
(A) (i) (ii) (iii) (iv)
(B) (ii) (iii) (i) (iv)
(C) (ii) (iv) (i) (iii)
(D) (ii) (i) (iv) (iii)

1
Ans. (C) a (ii) b (iv) c (i) d (iii) mark

1 Q. Statement-I: The basic function of a Stock Exchange is the creation of a

5 continuous market where securities are bought and sold.

Statement-II: The Stock Exchange provides both liquidity and easy

marketability to already existing securities in the market.

Choose the correct option from the following:

(A) Statement-I is true and Statement-II is false.
(B) Statement-II is true and Statement-I is false.
(C) Both the Statements are true.
(D) Both the Statements are false.

1
Ans. (C) Both the statements are true. mark

1 Q. Navya went to a supermarket for grocery shopping. She bought one kg

6 of bajra flour from the supermarket. On reaching home when she opened
the packet she found worms inside it. She was disappointed and told her
son about the same. Her son asked her to check the label. When she
checked the label of the packet, she found that bajra flour was stale and
beyond the expiry date. She approached the sales-person at the
supermarket who replaced the bajra flour immediately. When she
thanked the sales-person, she was told that it was the policy of the
9
 supermarket to satisfy the customers. He further told that satisfied
customers not only lead to repeat sales but they also provide good
feedback to prospective customers which helps in increasing the customer
base of business. Identify the point of importance of consumer protection
from the point of view of the supermarket which is helping them to
increase the customer base:
(A) Long term interest of the business
(B) Moral justification
(C) Social responsibility
(D) Government intervention

Ans. (A) Long term interest of the business 1

mark

1 Q. Many reputed business organisations keep a database of unsolicited

7 applicants in their offices. Such job seekers can be a valuable source of
manpower. A list of such job seekers can be prepared and can be screened
to fill the vacancies as they arise. The source of recruitment discussed
above is:
(A) Direct recruitment
(B) Casual callers
(C) Labour contractors
(D) Campus recruitment

1
Ans. (B) Casual callers mark

1 Q. __________ means doing the task correctly and with minimum cost.
8
(A) Efficiency
(B) Effectiveness
(C) Management
(D) Coordination

Ans. (A) Efficiency 1

mark

10
1 Q. As per Plastic Waste Management Rule 2022, single use plastic items
9 were prohibited in Delhi from 1 July, 2022. The dimension of business
environment referred to here is
(A) Economic environment
(B) Legal environment
(C) Technological environment
(D) Political environment

1
Ans. (B) Legal environment mark

2 Q. Which of the following is not an element of social environment?

0 (A) Composition of family
(B) Consumption habits
(C) Rates of saving and investment
(D) Educational system and literacy rates

1
Ans. (C) Rates of savings and investment mark

2 Q. State any three protective functions of 'Securities and Exchange Board

1 of India'.

Ans. Protective functions of Securities and Exchange Board of India: (Any

three)

(i) It prohibits fraudulent and unfair trade practices like misleading statements,
manipulations, price rigging etc. 1x3
=
3
(ii) It controls insider trading and imposes penalties for such practices. marks

11
 (iii) It undertakes steps for investor protection.

(iv) It promotes fair practices and code of conduct in securities market.

2 Q. ‘Caro’, a car manufacturing company was manufacturing high cost,

2 good quality luxury cars. For the last few years, the company was not
earning good profits as the demand for the cars was very low.

Chief Executive Officer of the company, Piyush had a meeting with the
Production and Sales Managers to discuss how to increase the revenue of
the company. They found that nowadays instead of purchasing luxury
cars people prefer to have such cars on rental basis. So they decided to
start 'Car rental service'. The Production Manager also suggested that as
these cars were sophisticated and each spare part was very costly it would
be better to provide these cars for rental service along with trained drivers
so that there would be less wear and tear. Piyush agreed and a training
unit was started. Two of the available cars were used for training the
drivers. People were very happy as they were getting these cars on rental
basis with trained drivers. The idea was a big hit and the company was
able to surpass its profit targets of the last 20 years.

(a) Identify and explain the method of training given by 'Caro' to its
drivers.

(b) Also, state any two advantages the drivers will get after this training.

Ans.

(a) Vestibule Training

It is a method of training in which the employees learn the jobs on the ½ mark
equipment they will be using but the training is conducted away from the for
actual work floor. This is used when employees are required to handle Identify
sophisticated machinery and equipment. ing the
method
(If an examinee has identified the method of training as ‘Off the job’, only ½ of
mark is to be given) training

12
 +
½ mark
(b) Advantages the drivers will get after this training: (Any two) for its
expl-
anation
(i) It will help in career growth due to improved skills and knowledge.
1x2
=
(ii) It will help them to earn more due to improved performance. 2 marks
=
1+2
(iii) It will reduce accidents as the employees are more efficient to handle =
machines. 3
marks

(iv) It will increase the morale of the employees as the employees are more
satisfied.

(If an examinee has only listed the underlined points, ½ mark for each point
should be awarded)

2 Q. State any three points of importance of staffing function of

3 management.

Ans. Importance of staffing: (Any three)

(i) It helps in discovering and obtaining competent personnel for various jobs.

(ii) It makes for higher performance by putting the right person on the right
job.

1x3
(iii) It ensures continuous survival and growth of the enterprise through =
succession planning for managers. 3
marks

13
 (iv) It helps to ensure optimum utilisation of human resources by avoiding
overmanning and shortage of personnel

(v) It improves job satisfaction and morale of employees through objective

assessment and fair reward for their contribution.

(If an examinee has only listed the underlined points, ½ mark for each point
should be awarded)

2 Q. ‘Cortico Fabrics’ was started by Ashish in 2001 to sell bed sheets,

4 towels, comforters, pillows, cushions, bath mats etc. It is now a famous
name and its branches are across India. To manage the work all over
India, it has eight teams-two each for North, South, East and West India.
Ashish spends a considerable amount of time to develop an orderly
pattern of group efforts among different teams and to secure unity of
action in pursuit of a common purpose.
To ensure suitable allocation of tasks to the various members of the teams
and to see that the tasks are performed with harmony among the
members, he tries to balance the different teams at different locations.
(a) Identify and explain the concept of management discussed in the above
para.
(b) Also, explain any one point of importance of the concept identified in
(a) above.

Ans. 1 mark
for
(a) Co-ordination Identifyin
g the
Co-ordination is the process by which a manager synchronises the activities of concept
different departments towards the achievement of a common goal. +
1 mark
for its
expl-
(b) anation

14
 Importance of Co-ordination: (Any one)

½ mark
(i) Growth in size for the
heading
(ii) Functional Differentiation +
½ mark
(iii) Specialisation for
explan-
ation
(If an examinee has not given the headings as above but has given the =
correct explanation, full credit should be given) 1+1+1
=
3
Marks

2 Q. A Business Process Outsourcing centre, 'Chromosome' which deals in

5 conversion of voice reports dictated by physicians and other healthcare
providers into text format has 40 employees. They ensure that their
employees are well versed in at least one foreign language and one Indian
language. The employees are also given the required training to ensure
that the reports are processed correctly as they are the backbone of the
patients' medical history. On frequent complaints about some of its
employees, it was observed that they were facing problems in decoding the
message as they were not very proficient with the language in which the
voice message was received. As a result, they would make mistakes
causing different meaning to the message. Not only this, sometimes there
were technical words used in voice reports, the actual meaning of which
was also not understood by the employees. Due to this, 'Chromosome' was
slowly losing its business to competitors.
The above case highlights two communication barriers. Identify and
explain these barriers.

Ans. Two communication barriers discussed in the above case are:

(i) Faulty Translations

1 mark
§ Sometimes the communications originally drafted in one language need to for
be translated to the language understandable to workers. identify

15
 ing each
barrier
§ If the translator is not proficient with both the languages, mistakes may +
creep in causing different meanings to the communication. 1 mark
for each
explan
(ii) Technical Jargon ation

=
§ Specialists sometimes use technical jargon while explaining to persons who 2+2
are not specialists in the concerned field. =
4
marks
§ Therefore, they may not understand the actual meaning of many such words.

(If an examinee has identified the barrier as ‘Semantic barrier’, only ½ mark
is to be given)

2 Q. Inspired by the success of Chandrayaan-3, the Chief Scientist at 'Space

6 Rover' a private research group, decided to send some innovative ideas
regarding the mission to the Chief Scientist of Chandrayaan-3.
The Chief Scientist at 'Space Rover' formed four groups for the same. As
it was an intellectual activity of thinking rather than doing, these four
groups started interacting with each other and friendships developed. On
the basis of their interaction and friendship, some members from each
group formed 'Entertainment Through Reading' group which showed
conformity in terms of their interest. 'Entertainment Through Reading'
group had no written rules, was unstable in form and scope and had no
fixed lines of communication. The members of this group enhanced the
morale of each other, enjoyed drinking coffee together, read books, served
different issues of their work areas and provided support to each other.
Ultimately this group developed some innovative ideas which were sent by
'Space Rover' to the Chief Scientist of Chandrayaan-3. Though this group
was formed for recreation but it contributed towards fulfillment of
organisational objectives.
(a) Identify and explain the type of organization which emerged as
'Entertainment Through Reading'.
(b) State any three advantages of the type of organisation identified in (a)
above.

16
 Ans. Informal Organisation
½ mark
for
Informal organization is a network of personal and social relations not Identif
established or required by the formal organization but arising spontaneously as ying
people associate with one another. +
½ mark
for its
(or any other correct meaning) expl-
anation

Advantages of Informal Organisation:

+

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

1 mark
for each
(ii) It fulfills the social needs of the members. statement
(1 x 3)
=
(iii) It contributes towards fulfillment of organisational objectives by ½+½
compensating for inadequacies in the formal organisation. +
3
=
(If an examinee has only listed the underlined points, ½ mark for each point 4
should be awarded) Marks

2 Q. (a) State any four characteristics of planning.

7

Ans. Characteristics of planning: (Any four)

(i) It focuses on achieving organisational objectives.

(ii) It is the primary function of management as it lays down the basis for all
other functions of management.

(iii) It is pervasive as it is required in all organisations, at all levels and in all

departments.

(iv) It is continuous because a plan is framed, implemented and is followed by

17
another plan.
1x4
(v) It is futuristic as it involves looking ahead and preparing for the future. =
4 marks
(vi) It involves decision making as it involves a choice from among the various
alternative courses of action.

(vii) It is a mental exercise as it is intellectual activity of thinking rather than

doing.

(viii) It provides the basis for controlling by providing standards.

(If an examinee has only listed the underlined points, ½ mark for each point
should be awarded)

OR
OR

Q. (b) Explain the following types of plans:

(i) Policy
(ii) Budget

Ans.

Policy

§ Policies are general statements that guide thinking or channelise energies

towards a particular direction.
2
§ Policies define the broad parameters within which a manager may function.
A manager may use his discretion to interpret and apply a policy.

Budget

§ A budget is plan which states expected results of a given future period in

numerical terms. It may be expressed in time, money or physical units.

§ It is an instrument of both planning and control. It comes under planning as 2

making a budget involves forecasting. It is also a control device as actual
figures can be compared with expected figures and deviations taken care of.
=
18
 4
marks
2 Q. Differentiate between ‘Selling Concept’ and 'Production Concept' of
8 marketing management philosophies on the basis of:
(a) Meaning
(b) Main focus
(c) Means
(d) Ends

Ans.

Difference between Selling Concept and Production Concept

Basis Selling Production

Concept Concept
(a) It assumes that the customers would It assumes that consumers
not buy, or not buy enough, unless would favour those
Meaning they are adequately convinced and products which are widely
motivated through aggressive selling available at an affordable
and promotional efforts price.

(b) Its focus is on the existing product. Its focus is on quantity

Main produced. 1x4
focus
(c) It uses selling and promoting of It uses availability and =
Means product as a means to achieve the affordability of product as 4 marks
objective a means to achieve the
objective

(d) Its objective is to earn profit through Its objective is to earn

Ends sales volume profit through production
volume

2 Q. Kewalram started a sweets shop 'Karamati Sweets' in 1950. The sweets

9 were famous all over India for their good quality and people would come
from far and wide to purchase sweets from him. As he grew old, he could
no longer run the shop. So, he sold the shop to one of his neighbours
Bholaram'. After a few months, to further increase the revenue,
Bholaram' started engaging in unfair trade practices like using
adulterated khoya and paneer. He thought that no one would know about
19
 it as 'Karamati Sweets' had a good image in the eyes of the people.
Slowly, people started falling sick after consuming sweets purchased from
‘Karamati Sweets' but they did not know where to go and to whom to
complain. Raghav, a resident of the village had recently completed his
studies. He was also a member of a non-governmental organisation. ‘Meri
Voice'. He felt that the villagers should be made aware about the rights
and reliefs available to them. He started creating awareness about
consumer rights among the villagers to protect their interest through a
series of talks and presentations in the village.
(a) Identify and explain the consumer right discussed in the above para.
(b) Also, identify and explain the consumer right violated by 'Bholaram'
in the above case.

Ans. (a) Right to Consumer Education

The consumer has a right to acquire knowledge about his rights and reliefs (1 mark
available to him in case of a product or service is falling short of his for
expectation and to be a well informed consumer throughout life. identify
ing each
right
Many consumer organisations and businesses are educating consumers in this +
respect. 1 mark
for its
explan
ation
(b) Right to Safety
=
2
marks)
The consumer has a right to be protected against goods and services which are =
hazardous to life, health and property. 2+2
=
4
Consumers are educated that they should use products which are standardised marks
as this would be an assurance of such products meeting quality specifications.

3 Q. (a) Explain the following functions of marketing:

0 (i) Gathering and Analysing Market Information
(ii) Marketing Planning

Ans.
20
(i) Gathering and Analysing Market Information

This involves making an analysis of the available opportunities and threats as

well as the strengths and weaknesses of the organisation which helps in 2
deciding which opportunities can best be pursued by it.

With the growth of computers, more and more companies are using interactive
sites on the internet, to gather customer views and opinions, before taking
important business decisions.

(ii) Marketing Planning

A marketer is to develop appropriate marketing plans so that the marketing

objectives of the organisation can be achieved. 2

This involves development of marketing plans like plan for increasing the level
of production, promotion of the products, etc. =
4
Marks

OR OR

Q. (b) State the four major components of physical distribution.

Ans. The four major components of physical distribution are:

(i) Order processing is a component of physical distribution which ensures

accurate and speedy processing of orders, in the absence of which goods will
reach the customers late or in wrong quantity.

(ii) Transportation which is a means of carrying goods and raw materials

from the point of production to the point of sale because unless the goods are 1x4
physically made available, the sale cannot be completed. =
4 marks

(iii) Warehousing which refers to the act of storing and assorting products in

21
 order to create time utility to them.

(iv) Inventory Control involves creating a balance in respect of cost and

customer satisfaction as higher the level of inventory, higher will be the level
of service to customers but the cost of carrying the inventory will also be high.

(If an examinee has only listed the underlined points, ½ mark for each point
should be awarded)

3 Q. (a) Explain the following points of significance of principles of

1 management:
(i) Providing managers with useful insights into reality
(ii) Meeting changing environment requirements
(iii) Scientific decisions

Ans.

(i) Providing managers with useful insights into reality

§ Principles of management provide useful insights into reality by enabling the

managers to learn from past mistakes and conserve time by solving recurring
problems quickly. 2

§ Adherence to these principles adds to their knowledge, ability and

understanding of managerial situations and circumstances.

(ii) Meeting changing environment requirements

§ Principles of management can be modified according to the changes taking

place in the environment. 2

§ Hence, they help the managers in meeting changing environment

requirements.

22
(iii) Scientific decisions

§ Principles of management help in taking scientific decisions because the

decisions based on principles are free from bias. 2

=
§ They are based on the objective assessment of the situation. 6 marks

OR OR

Q. (b) Explain the following principles of management:

(i) Unity of direction
(ii) Remuneration to employees
(iii) Equity

Ans.

(i) Unity of direction

§ Unity of direction states that all the units of an organisation should be

moving towards the same objectives through coordinated and focussed
efforts. 2

§ Each group of activities having the same objective must have one head and
one plan. This ensures unity of action and coordination

(ii) Remuneration to employees

§ Remuneration to employees states that the overall pay and compensation

should be fair to both employees and the organisation which should give the 2
employees at least a reasonable standard of living.

§ At the same time remuneration should be within the paying capacity of the

23
 company.

(iii) Equity

§ It advocates that there should be no discrimination against anyone on account

of sex, religion, language, caste, belief, nationality etc.
2

§ It emphasises kindliness and justice in the behaviour of managers towards the =

workers to ensure loyalty and devotion. 6 marks

3 Q. (a) Explain the following factors affecting the working capital

2 requirements of a business:
(i) Credit allowed
(ii) Production cycle
(iii) Availability of raw material

Ans.

(i) Credit allowed

§ Different firms allow different credit terms to their customers. These

depend upon the level of competition that a firm faces as well as the credit
worthiness of their clientele. 2

§ A liberal credit policy results in higher amount of debtors, increasing the

requirement of working capital.

(ii) Production cycle

§ Production cycle is the time span between the receipt of raw material and
their conversion into finished goods. 2

§ Working capital requirement is higher in firms with longer processing cycle

and lower in firms with shorter processing cycle.

24
(iii) Availability of raw material

§ If the raw materials and other required materials are available freely and
continuously, lower stock levels may suffice. 2

§ If, however, raw materials do not have a record of uninterrupted =

availability, higher stock levels may be required. 6 marks

OR
OR

Q. (b) Explain the following factors affecting the dividend decision of a

company:
(i) Growth opportunities
(ii) Cash flow position
(iii) Shareholders’ preference

Ans.

(i) Growth opportunities

§ Companies having good growth opportunities retain more money out of

their earnings so as to finance the required investment. 2

§ The dividend in growth companies is, therefore, smaller, than that in the
non– growth companies.

(ii) Cash flow position

§ The payment of dividend involves an outflow of cash.

§ A company may be earning profit but may be short on cash. Availability of 2

enough cash in the company is necessary for declaration of dividend.

25
 (iii) Shareholders’ preference

§ There are always some shareholders who depend upon a regular income
from their investments.

2
§ If the shareholders in general desire that at least a certain amount is paid as
dividend, the companies are likely to declare the same. =

6 marks

3 Q. The G20 Summit was organised in India. The government left no stone
3 unturned to make G20 summit a success.

At the higher level, the work to be performed was identified and grouped
to enable people to work most effectively together for accomplishing
objectives. This involved building infrastructure, beautification of the city.
hospitality, security arrangements etc. Duties were assigned to different
job positions which led to establishment of clear relationships. This helped
in creating a hierarchical structure and in co-ordination amongst all
working for the summit.
(a) Identify and explain the function of management discussed in the
above para.
(b) Explain any four points of importance of the function identified in
(a) above.

1 mark
Ans. (a) The function of management is Organising for
Identifyin
g
the
function
Organising is the process of identifying and grouping the work to be +
performed, assigning duties to job positions and establishing relationships for 1 mark
the purpose of accomplishing objectives. for its
expl-
(or any other correct explanation) anation

26
 (b) Importance of organising: (Any four)

(½ mark
(i) Benefits of specialisation for each
heading
+
(ii) Clarity in working relationships. ½ mark
for its
explan
(iii) Optimum utilisation of resources. ation)
=
(1 x 4)
(iv) Adaptation to change. =
4 marks
=
(v) Effective administration. 1+1+4
=
6
(vi) Development of personnel. marks

(vii) Expansion and growth.

(If an examinee has not given the headings as above but has given the
correct explanation, full credit should be given)

3 Q. ‘Memo Builders' was constructing a five star hotel for a leading hotel
4 chain. The hotel had to be given possession by next year but the
construction of the hotel was running six months behind schedule. The
Chief Executive Officer of 'Memo Builders' was concerned as Memo
Builders was known for its quality and timely completion of projects. He
asked Nitin, the senior of the Project Head for a thorough investigation.
Nitin investigated and reported to the Chief Executive Officer that inspite
of huge absenteeism of workers, additional workers were not called. Nitin
also reported to the Chief Executive Officer that three of the ten machines
being used by the workers were defective. Nitin ordered for repair of the
machines and asked the Project Head to appoint additional workers with
attractive wages to ensure that the deadline is met.
(a) Identify the function of management. Quoting the lines from the above
para, explain the steps of the process of the function of management

27
discussed.
(b) Also explain any two points of importance of the function of
management identified in (a) above.

Ans. (a) The function of management is Controlling. 1 mark

for
identify
ing the
Steps of controlling process discussed in the above case are: function

(i) Comparison of actual performance with standards

½ mark
Actual performance is compared with the standards to find out the deviation. for
identify
‘The hotel had to be given possession by next year but the construction of ing and
the hotel was running six months behind schedule’ quoting
each step
+
½ mark
for each
(ii) Analysing deviations explan
ation
=
Deviations are analysed for their causes through Critical Point Control and (1 x 3)
Management by Exception. =
1+3
=
‘Nitin investigated and reported to the Chief Executive Officer that inspite 4 marks
of huge absenteeism of workers, additional workers were not called’
Or
+
‘Nitin also reported to the Chief Executive Officer that three of the ten
machines being used by the workers were defective’

(iii) Taking corrective action

28
 ( ½ mark
Corrective action is taken if deviations go beyond the acceptable limits. for each
heading
+
‘Nitin ordered for repair of the machines and asked the Project Head to ½ mark
appoint additional workers with attractive wages to ensure that the for each
deadline is met’ explan
ation)
=
1x2
=
2 marks
(b) Importance of Controlling: (Any two) =
4+2
(i) Accomplishing organisational goals =
6
(ii) Judging accuracy of standards marks

(iii) Making efficient use of resources

(iv) Improving employee motivation

(v) Ensuring order and discipline

(vi) Facilitating coordination in action

(If an examinee has not given the headings as above but has given the
correct explanation, full credit should be given)

29