Series EF1GH/C SET~1

Q.P. Code 66/C/1

Roll No. narjmWu àíZ-nÌ H$moS> >H$mo CÎma-nwpñVH$m Ho$
_wI-n¥ð >na Adí` {bIo§ &
Candidates must write the Q.P. Code on
the title page of the answer-book.

ì`mdgm{`H$ AÜ``Z
BUSINESS STUDIES
*
:3 : 80
Time allowed : 3 hours Maximum Marks : 80

NOTE :
(i) - 19
Please check that this question paper contains 19 printed pages.
(ii) - - -
-
Q.P. Code given on the right hand side of the question paper should be written on the title
page of the answer-book by the candidate.
(iii) - 34
Please check that this question paper contains 34 questions.
(iv) -

Please write down the serial number of the question in the answer-book before
attempting it.
(v) - 15 -
10.15 10.15 10.30 -
-
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.

66/C/1 JJJJ ^ Page 1 P.T.O.

 :

:
(i) 34

(ii)
(iii)
(iv) 3 50 75
(v) 4 150
(vi) 6 200
(vii)

1 20 (MCQ) 1 20×1=20

1. 1998
10
5

,
(a)
(b)
(c)
(d) (a) (c)

2.

- ?
(a)
(b)
(c)
(d)

66/C/1 JJJJ Page 2

General Instructions :
Read the following instructions very carefully and strictly follow them :
(i) This question paper contains 34 questions. All questions are compulsory.
(ii) Marks are indicated against each question.
(iii) Answers should be brief and to the point.
(iv) Answers to questions carrying 3 marks may be from 50 to 75 words.
(v) Answers to questions carrying 4 marks may be in about 150 words.
(vi) Answers to questions carrying 6 marks may be in about 200 words.
(vii) Attempt all parts of a question together.

Questions 1 to 20 are Multiple Choice Questions (MCQs), carrying 1 mark

each. 20 1=20

1.
and is one of the largest programmes that enables underprivileged girls
to complete 10 years of schooling. The project has impacted the lives of
over 5 lakh girls from low income group families across the country.
The objective achieved by Shivam and Sohan Ltd. by doing so is :
(a) Organizational objective
(b) Social objective
(c) Personal objective
(d) Both (a) and (c)

2. With rising pollution levels, consumers are becoming conscious about the
harmful effects of polluted air, so the demand for home air-purifiers is
increasing day-by-day. Which dimension of business environment is
discussed here ?
(a) Political Environment
(b) Technological Environment
(c) Economic Environment
(d) Social Environment

66/C/1 JJJJ Page 3 P.T.O.

3. 2019
(a)
(b)
<1
(c)
(d)

4.
,
(a)
(b)
(c)
(d)

5.
(a)
(b) -

(c)
(d) ,

6. ( )
- ?
(a)
(b)
(c)
(d)

7.
_________
(a)
(b)
(c)
(d)
66/C/1 JJJJ Page 4
3. From the following, identify the Incorrect Statement as per Consumer
Protection Act, 2019 :
(a) National Commission has territorial jurisdiction over the whole
country for consumer protection.
(b) District Commission entertains complaints where value of goods or
services paid as consideration does not exceed < 1 crore.
(c)
National Commission.
(d) District Commission and State Commission are set by the State
Governments.

4. -to-face contact between the prospect

(a) Paid form

(b) Impersonality
(c) Economical
(d) Identified sponsor

5. From the following, identify the statement which is correct about capital
budgeting decision :
(a) These decisions are reversible.
(b) These decisions include committing huge amounts of finance on a
long-term basis, therefore need to be taken with utmost care.
(c) These decisions do not affect the earning capacity of the business
in the long run.
(d) Size of assets, profitability and competitiveness are not affected by
capital budgeting decisions.

6. In organising process, which of the following step is performed just before

establishing reporting relationship between individuals ?
(a) Assignment of duties
(b) Identification and division of work
(c) Departmentalization
(d) Imparting training to employees

7. A statement of expected results expressed in numerical terms is a type of

plan called as ___________.
(a) Method
(b) Budget
(c) Programme
(d) Procedure

66/C/1 JJJJ Page 5 P.T.O.

8. -
?
(a)
(b)
(c)
(d)

9. -
?
(a)
(b)
(c)
(d) - ( )

10. I:

II : -

(a) I II
(b) II I
(c)
(d)

11. - ?
(a)
(b)
(c)
(d)

66/C/1 JJJJ Page 6

8. Which of the following functions of management completes one cycle of
management process and improves planning in the next cycle ?
(a) Organising
(b) Staffing
(c) Directing
(d) Controlling

9. Providing job security and pension plan, etc. will satisfy which of the
following needs of employees ?
(a) Basic physiological needs
(b) Safety/Security needs
(c) Belongingness needs
(d) Esteem needs

10. Statement I : Financial planning is essentially the preparation of

fi
Statement II : Financial planning is done only for long-term and focuses
on capital expenditure programmes only.

Choose the correct option from the options given below :

(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.

11. Which of the following is not a factor affecting price of a product or

service ?
(a) Product cost
(b) Extent of competition in the market
(c) Government and legal regulations
(d) Standardization and Grading

66/C/1 JJJJ Page 7 P.T.O.

12.

?
(a)
(b)
(c)
(d) (b) (c)

13. I II

I II

A. (i)

B. (ii)

C. (iii)

(a) A-(i), B-(ii), C-(iii)

(b) A-(iii), B-(ii), C-(i)
(c) A-(ii), B-(iii), C-(i)
(d) A-(i), B-(iii), C-(ii)

14. - ?
(a)

(b)

(c)
(d) - ,

66/C/1 JJJJ Page 8

12. Ashita works in a company where her basic task is to integrate diverse
elements and co-ordinate the activities of different departments
according to the overall objectives of the organisation. At which level of
management is Ashita working ?
(a) Top level management
(b) Middle level management
(c) Supervisory level management
(d) Both (b) and (c)

13. Match the features of planning given in Column I with their respective
explanation given in Column II.
Column I Column II
A. Planning is a (i) Planning involves thorough examination
mental exercise and evaluation of each alternative and
choosing the most appropriate one
B. Planning is all- (ii) Planning is required at all levels of
pervasive management as well as in all
departments of the organisation
C. Planning involves (iii) Planning requires logical and systematic
decision-making thinking rather than guess work or
wishful thinking
(a) A-(i), B-(ii), C-(iii)
(b) A-(iii), B-(ii), C-(i)
(c) A-(ii), B-(iii), C-(i)
(d) A-(i), B-(iii), C-(ii)

14. Which of the following is not a disadvantage of functional structure of

organisation ?
(a) Less emphasis on overall enterprise objectives than the objectives
pursued by a functional head.
(b) A conflict of interests may arise when the interests of two or more
departments are not compatible.
(c) May lead to increase in costs since there may be duplication of
activities across products.
(d) It may lead to problems in coordination as information has to be
exchanged across functionally differentiated departments.

66/C/1 JJJJ Page 9 P.T.O.

15.

: 10/3/23 : : 500

: 10/3/25
100%

: < 500 :

----------

:
(a)
(b)
(c)
(d)

16. 2003

(a)
(b)
(c)
(d)

17.
?
(a) (b)
(c) (d)

18. , 2019 -
?
(a)
(b) AmídñV
(c)
(d)

66/C/1 JJJJ Page 10

15. The picture given below depicts important information related to a
decision that a marketer has to take in the area of product.
Manufacturing Date : Organic Honey : Quantity : 500 ml
10/3/23
Expiry Date : 10/3/25 No added sugar 100%
pure

Max. Retail Price : < 500 Manufacturer :

Organic Agro
products
---------- Uttarakhand
Identify from the following the correct option :
(a) Branding
(b) Labelling
(c) Packaging
(d) None of the above

16. From 2003, all transactions in securities are to be settled within two days
after the trade date. This system is known as :
(a) Rolling settlement system
(b) Rotational settlement system
(c) Automatic settlement system
(d) Mutual settlement system
17. important task
performed by the marketing department. It is included under which of
the following element of marketing mix ?
(a) Product mix (b) Place mix
(c) Price mix (d) Promotion mix
18. Which of the following consumer rights under Consumer Protection Act,
2019 gives the freedom to consumers to access variety of products at
competitive prices ?
(a) Right to be informed
(b) Right to be assured/Right to choose
(c) Right to consumer education
(d) Right to be heard

66/C/1 JJJJ Page 11 P.T.O.

19. - ?
(a)
(b)
(c)
(d)

20. _________
(a)
(b)
(c)
(d) -
21.
,
?

22. (a) 3

(b) 3

23. ûm¥§IbmAm|

ûm¥§Ibm ,

, ,

66/C/1 JJJJ Page 12

19. Which of the following statements is Incorrect with respect to Autocratic
Leadership style ?
(a) Subordinates are expected to obey the orders of the leader.
(b) An autocratic leader does not wish to be contradicted.
(c) Subordinates are given high degree of independence.
(d) Quick decision-making is facilitated.

20. ____________ is a standing plan.

(a) Rule
(b) Budget
(c) Programme
(d) Strategy

21. Ananta Ltd. is a firm manufacturing electronic goods. To increase its

sales and earn profits, its General Manager, Kamal is thinking in
advance what to do and how to do it. He is also preparing forecasts to
reduce the risk of uncertainty and to achieve its targets.
By doing so Kamal is performing an important function of management.
Identify and state the function of management highlighted above. Also
state any two points of importance of this function. 3

22. (a)
management. 3
OR
(b) 3

23.
pioneered the concept of family-style restaurants. However, over the
years it started losing business to multinational food chains like
McDonalds and Pizza Hut, etc. and soon had to shut down.
The reason to shut down was the inability of managers to identify,
understand, evaluate and to react to the forces external to their firm.
In the light of the above situation, explain with the help of any two
points, how understanding of business environment is important for
managers. 3

66/C/1 JJJJ Page 13 P.T.O.

24. (a) 3

(b) 3

25. 2016
10

-
,

26. (a)
4

(b) : 4
(i)
(ii)
(iii)
(iv)

27.
: 4
(i)
(ii) -

28. (a) 4

(b) ( ) 4
66/C/1 JJJJ Page 14
24. (a) State any three benefits of staffing function of management to the
organisation. 3
OR
(b) State any three benefits of training to employees. 3

25. Pallavi st
and her target was to be amongst the top 10 companies in this field
within the next three years. For this she employed people having
different skills. She worked hard and united the efforts of different people
to achieve this goal. The requirements of the customers in this industry
changed very fast and the company adapted to keep pace with the
changing environment. As planned, the company achieved its target
within three years. All the employees of the organisation were happy and
satisfied and the effect of management was noticeable in the
organisation.
The way Pallavi was managing her business highlights some of the
features of management. By quoting lines from the above paragraph,
explain any two such features. 4

26. (a)
function of management. 4
OR
(b) Explain the following as elements of communication process : 4
(i) Message
(ii) Encoding
(iii) Media
(iv) Decoding

27. Explain the following as factors affecting the working capital

requirements of a business : 4
(i) Nature of business
(ii) Credit availed

28. (a)
4
OR
(b) State any four functions of Stock Exchange. 4
66/C/1 JJJJ Page 15 P.T.O.
29.
. . .

(a)
(b)
4

30.
, ,

31. XII . .

{díbofU

, ,

66/C/1 JJJJ Page 16

29. Ankush bought a high end microwave on Diwali from a leading electronic
store. The microwave had ISI mark and Ankush diligently went through
the instruction manual so that he could use it properly. However, due to
faulty wiring there was a short-circuit in the microwave. He called up the
consumer helpline of the company many times but no solution was
provided by the company. Ankush now decided to file a case in the
consumer court.
(a) Identify and explain the right which Ankush will exercise.
(b) State two responsibilities which Ankush had fulfilled while
purchasing and using the microwave. 4

30. egree in culinary arts from a

reputed institute, took over his family restaurant specialising in South
Indian dishes. This business was promoted by his grandfather many
years back in the form of a company. Now he wants to get the restaurant
renovated to open a special section for bakery products. It is estimated
that an investment of < 5 crore will be required to execute this plan. At
present the cash flow position of the company is not strong and fixed
operating costs of business are also high.
Keeping in view the above situation, name with two reasons, the source
of finance which Srijan should choose for modernization and expansion of
his business. Also explain one more factor, apart from those stated above
which Srijan should keep in mind while taking this decision. 4

31. Abhishek studied management principles and techniques of Henri Fayol

and F.W. Taylor when he was in class XII. Now he is trying to apply his
knowledge while doing his business. By using different techniques and
scientifically analysing work he found one best way of doing the job. By
removing unproductive movements of the workers he reduces the time to
complete the job. Not only this, to increase productivity and to regain
stamina he started giving more rest intervals to his employees. He
followed no discrimination policy on account of sex, religion, caste, etc. in
his organisation. He ensured that the compensation should be fair to
both, employees and the organisation.
Identify and explain any two techniques of scientific management and
two principles of general management adopted by Abhishek. 6
66/C/1 JJJJ Page 17 P.T.O.
32. . .
,

(a)

(b) (a)
6

33. (a)
6

(b)
6

34. (a) : 6
(i)
(ii)
(iii)

(b) ,
6

66/C/1 JJJJ Page 18

32. F.M. Tech Ltd. is one of the leading information technology service
provider company in Delhi. To enable smooth functioning of the
enterprise, job description and rules and procedures related to work
processes are laid down. The company specifies clearly the boundaries of
authority and responsibility and there is a systematic co-ordination
among the various activities to achieve organisational goals.
(a) Identify and explain the ype of organisation discussed above.
(b) State any two advantages and two limitations of the ype of
organisation identified in (a) above. 6

33. (a) Explain the steps in the staffing process of management after
6
OR
(b) Explain the steps in the selection process of staffing function of
6

34. (a) Explain the following as functions of marketing : 6

(i) Marketing Planning
(ii) Product Designing and Development
(iii) Standardisation and Grading
OR
(b) related decisions include decisions about
se
important decisions. 6

66/C/1 JJJJ Page 19 P.T.O.

 Marking Scheme
Strictly Confidential (For Internal and Restricted use only)
Senior School Certificate Supplementary Examination, July 2023
SUBJECT NAME: BUSINESS STUDIES (66/C/1)
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.
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 delibration 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.
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.

[Type here]
 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 (example 0 to 80/70/60/50/40/30 marks 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).
13 Ensure that you do not make the following common types of errors committed by the
Examiner in the past:
● Wrong totalling 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 totalling on the title page.
● Leaving answer or part thereof unassessed in an answer book.
● Wrong totalling 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 un assessed 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.

[Type here]
 MARKING SCHEME
Senior Secondary School Supplementary Exam, July 2023
BUSINESS STUDIES (Subject Code — 054)
[ Paper Code — 66/C/1]
Q. No. EXPECTED ANSWER / VALUE POINTS Marks
1. Q. Project ‘Nanhi Kali’ run by Shivam and Sohan Ltd.
was started in 1998 and is one of the largest
programmes that enables underprivileged girls to
complete 10 years of schooling. The project has
impacted the lives of over 5 lakh girls from low income
group families across the country.
The objective achieved by Shivam and Sohan Ltd. by
doing so is:

(a) Organizational objective

(b) Social objective

(c) Personal objective

(d) Both (a) and (c)

1 mark
Ans. (b) Social objective

2. Q. With rising pollution levels, consumers are

becoming conscious about the harmful effects of
polluted air, so the demand for home air-purifiers is
increasing day-by-day. Which dimension of business
environment is discussed here?
(a) Political Environment
(b) Technological Environment
(c) Economic Environment
(d) Social Environment
Ans. (d) Social Environment
1 mark

[Type here]
 3. Q. From the following, identify the Incorrect
Statement as per Consumer Protection Act, 2019:
(a) National Commission has territorial jurisdiction
over the whole country for consumer protection.
(b) District Commission entertains complaints where
value of goods or services paid as consideration
does not exceed ₹1 crore.
(c) Appeal against District Commission’s order can be
filed in National Commission.
(d) District Commission and State Commission are set
by the State Governments.

1 mark
Ans.(c) Appeal against District commission’s order can
be filed in National Commission.

4. Q. In advertising ‘there is no direct face-to-face

contact between the prospect and the advertiser’. The
feature of advertising stated here is:
(a) Paid form
(b) Impersonality
(c) Economical
(d) Identified sponsor

1 mark
Ans. (b) Impersonality

5. Q. From the following, identify the statement which is

correct about capital budgeting decision:
(a) These decisions are reversible.
(b) These decisions include committing huge amounts
of finance on a long-term basis, therefore need to
be taken with utmost care.
(c) These decisions do not affect the earning capacity

[Type here]
 of the business in the long run.
(d) Size of assets, profitability and competitiveness are
not affected by capital budgeting decisions.

Ans.(b) These decisions include committing huge

1 mark
amounts of finance on a long-term basis, therefore need to
be taken with utmost care.

6. Q. In organising process, which of the following step is

performed just before establishing reporting
relationship between individuals?
(a) Assignment of duties
(b) Identification and division of work
(c) Departmentalization
(d) Imparting training to employees

Ans.(a) Assignment of duties 1 mark

7. Q. A statement of expected results expressed in

numerical terms is a type of plan called as .
(a) Method
(b) Budget
(c) Programme
(d) Procedure

1 mark
Ans. (b) Budget
8. Q. Which of the following functions of management
completes one cycle of management process and
improves planning in the next cycle?
(a) Organising
(b) Staffing
(c) Directing

[Type here]
 (d) Controlling

1 mark
Ans. (d) Controlling

9. Q. Providing job security and pension plan, etc. will

satisfy which of the following needs of employees?
(a) Basic physiological needs
(b) Safety/Security needs
(c) Belongingness needs
(d) Esteem needs

Ans. (b) Safety/ Security needs 1 mark

10. Q. Statement I: Financial planning is essentially the

preparation of financial blueprint of an organisation’s
future operations.

Statement II: Financial planning is done only for

long-term and focuses on capital expenditure
programmes only.

Choose the correct option from the options given

below:
(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 mark
Ans. (a) Statement I is true and Statement II is false.

[Type here]
 11. Q. Which of the following is not a factor affecting
price of a product or service?
(a) Product cost
(b) Extent of competition in the market
(c) Government and legal regulations
(d) Standardization and Grading

1 mark
Ans. (d) Standardization and Grading

12. Q. Ashita works in a company where her basic task is

to integrate diverse elements and co-ordinate the
activities of different departments according to the
overall objectives of the organisation. At which level of
management is Ashita working?
(a) Top level management
(b) Middle level management
(c) Supervisory level management
(d) Both (b) and (c)

Ans. (a) Top level management 1 mark

13. Q. Match the features of planning given in Column I

with their respective explanation given in Column II.

Column I Column II
A. Planning is a (i) Planning involves
mental exercise thorough examination
and evaluation of
each alternative and
choosing the most
appropriate one

[Type here]
 B. Planning is all- (ii)Planning is required at
pervasive. all levels of management as
well as in all departments of
the organization
C. Planning involves (iii)Planning requires logical
decision-making. and systematic thinking
rather than guess work or
wishful thinking

(a) A-(i), B-(ii), C-(iii)

(b) A-(iii), B-(ii), C-(i)
(c) A-(ii), B-(iii), C-(i)
(d) A-(i), B-(iii), C-(ii)

Ans. (b) A-(iii), B-(ii), C-(i) 1 mark

14. Q. Which of the following is not a disadvantage of

functional structure of organisation?
(a) Less emphasis on overall enterprise objectives
than the objectives pursued by a functional head.
(b) A conflict of interests may arise when the interests
of two or more departments are not compatible.
(c) May lead to increase in costs since there may be
duplication of activities across products.
(d) It may lead to problems in coordination as
information has to be exchanged across
functionally differentiated departments.

Ans.(c) May lead to increase in costs since there may be 1 mark

duplication of activities across products.
[Type here]
 15. Q. The picture given below depicts important
information related to a decision that a marketer has
to take in the area of product.

Identify from the following the correct option:

(a) Branding
(b) Labelling
(c ) Packaging
(d) None of the above

1 mark
Ans. (b) Labelling

16. Q. From 2003, all transactions in securities are to be

settled within two days after the trade date.This
system is known as:
(a) Rolling settlement system
(b) Rotational settlement system
(c) Automatic settlement system
(d) Mutual settlement system

1 mark
Ans. (a) Rolling settlement system

17. Q. ‘Managing public opinion of an organisation is an

important task performed by the marketing
department.’ It is included under which of the
following element of marketing mix?

[Type here]
 (a) Product mix
(b) Place mix
(c) Price mix
(d) Promotion mix

1 mark
Ans. (d) Promotion Mix

18. Q. Which of the following consumer rights under

Consumer Protection Act, 2019 gives the freedom to
consumers to access variety of products at competitive
prices?
(a) Right to be informed
(b) Right to be assured/Right to choose
(c) Right to consumer education
(d) Right to be heard

1 mark
Ans. (b) Right to be assured / Right to choose

19. Q. Which of the following statements is Incorrect with

respect to Autocratic Leadership style?
(a) Subordinates are expected to obey the orders of the
leader.
(b) An autocratic leader does not wish to be
contradicted.
(c) Subordinates are given high degree of
independence.
(d) Quick decision-making is facilitated.

1 mark
Ans. (c) Subordinates are given high degree of
independence.
20. Q. ____________ is a standing plan.
(a) Rule
(b) Budget
(c) Programme
(d) Strategy

Ans. (a) Rule 1 mark

21. Q. Ananta Ltd. is a firm manufacturing electronic

goods. To increase its sales and earn profits, its
General Manager, Kamal is thinking in advance what
to do and how to do it. He is also preparing forecasts
to reduce the risk of uncertainty and to achieve its
targets.
By doing so Kamal is performing an important
function of management.

Identify and state the function of management

highlighted above. Also state any two points of
importance of this function.

Ans. Planning
Planning is the process of setting objectives for a ½ mark for
given time period, formulating various courses of identification
action to achieve them and then selecting the best +
possible alternative from among the various courses
½ mark for
of action available.
statement
Importance of planning (any two):
(i) Planning provides direction by stating in advance
how the work is to be done. +

(ii) Planning reduces risk of uncertainty by looking

 ahead and anticipating changes.
1 mark for
(iii) Planning reduces overlapping and wasteful each point of
activities by co-ordinating the activities of different importance
divisions.

(iv) Planning promotes innovative ideas requiring

application of mind and foresight.

(v) Planning facilitates decision making by making a

choice from among the alternative courses of
action.

= 3marks
(vi) Planning establishes standards against which
actual performance is measured.

(If an examinee has only listed the points, ½ mark for

each point should be awarded.)

22.
Q.(a) Explain the first two steps in the process of
‘controlling’ function of management.

Ans. First two steps in the process of ‘controlling’

function of management:

(i) Setting performance standards:

½ mark for
 Performance standards are the criteria against naming
which the actual performance would be +
measured. 1 mark for its
explanation
 Standards can be set in both quantitativeand
qualitative terms.

(ii) Measurement of actual performance

  Measurement of actual performance should be
=1½ x 2
done in an objective and reliable manner.
= 3 marks

 Performance should be measured in the same

units in which the standards are setto make
comparison easier.
OR
OR

(b) Explain any two features of ‘directing’ function of

management.

Ans. Features of ‘directing’ function of management

(any two):

(i) Directing initiates action.

Planning, organising, staffing and controlling

functions prepare a setting for action, whereas,
directing initiates action in the organisation.

(ii) Directing takes place at every level of =1½ x 2

management.

Every manager, from top executive to

supervisor performs the function of directing.
It takes place wherever superior-subordinate
relations exist.
(iii) Directing is a continuous process.

It takes place throughout the life of the

organisation irrespective of people occupying
managerial positions.

(iv) Directing flows from top to bottom. = 3 marks

Directing initiates at top level and flows to the

bottom through organisational hierarchy.
23. Q. ‘Burgers and Fudge’ was among the first fast food
chains in India which pioneered the concept of family-
style restaurants. However, over the years it started
losing business to multinational food chains like
McDonalds and Pizza Hut, etc. and soon had to shut
down.
The reason to shut down was the inability of managers
to identify, understand, evaluate and to react to the
forces external to their firm.
In the light of the above situation, explain with the
help of any two points, how understanding of business
environment is important for managers.

Ans. Importance of business environment (any two):

(i) It enables the firm to identify opportunities and

get first mover advantage.

Early identification of opportunities helps an

enterprise to be the first to exploit them instead
oflosing them to competitors.

(ii) It helps the firm to identify threats and early

warning signals. =1½ x 2

Environmental awareness can help managers to

identify various threats on time and serve as an
early warning signal.

(iii) It helps in tapping useful resources.

Understanding business environment helps an
enterprise to design policies that allow it to get
the resources that it needs so that it can convert
those resources into outputs.
 (iv) It helps in coping with rapid changes.
In order to effectively cope with significant
changes, managers must understand and
examine the environment and develop suitable
courses of action.

(v) It helps in assisting in planning and policy

formulation.

The understanding of business environment is

the basis for deciding the future course of
action(planning) or training guidelines for
decision making (policy).

(vi) It helps in improving performance.

The enterprises that continuously monitor their

environment and adopt suitable business
practices not only improve their present
performance but also succeed in the market for a
longer period. = 3 marks

24. Q. (a) State any three benefits of ‘staffing’ function of

management to the organisation.

Ans. Benefits of ‘staffing’ function of management to

the organisation (any three):
(i) It helps in discovering and obtaining competent
personnel for various jobs.
=1x3
(ii) It makes for higher performance by putting right
person on the right job.

(iii) It ensures continuous survival and growth of

the enterprise through the succession planning for
 managers.

(iv) It helps to ensure optimum utilisation of human

resources by avoiding overmanning and under-
utilisation of personnel.

(v) It improves job satisfaction and morale of

employees through objective assessment and fair
= 3 marks
rewarding of their contribution.
(If an examinee has only listed the points, ½ mark for
each point should be awarded.)

OR OR

(b) State any three benefits of training to employees.

Ans. Benefits of training to employees (any three):
(i) Improved skills and knowledge due to training
lead to better career of the individual.

(ii) Increased performance by the individual help

1 x3
him to earn more.

(iii) Training makes the employee more efficient to

handle machines, making them, less prone to
accidents.

(iv) Training increases the satisfaction and morale of = 3 marks

employees.

(If an examinee has only listed the points, ½ mark for

each point should be awarded.)
25.
Q. Pallavi started a wedding planner company
‘Dreams Unlimited’ in 2016 and her target was to be
amongst the top 10 companies in this field within the
 next three years. For this she employed people having
different skills. She worked hard and united the
efforts of different people to achieve this goal. The
requirements of the customers in this industry
changed very fast and the company adapted to keep
pace with the changing environment. As planned, the
company achieved its target within three years. All the
employees of the organisation were happy and
satisfied and the effect of management was noticeable
in the organisation.
The way Pallavi was managing her business highlights
some of the features of management. By quoting lines
from the above paragraph, explain any two such
features.

Ans. Features of management (any two):

(i) Management is goal oriented

“…. united the efforts of different people to achieve
this goal.”
½ mark for
Every organisation has a set of basic goals which naming
are the basic reason for its existence and unites the
+
efforts of different individuals in the organisation
½ mark for
towards achieving these goals.
quoting
(ii) Management is a dynamic function +
“ ….The company adapted to keep pace with the 1 mark for its
changing environment.” explanation

Management is a dynamic function and has to adapt

itself to the changing environment. In order to be
successful, an organisation must change itself and
its goals according to the needs of the environment. =2 x2

(iii) Management is an intangible force

 “All the employees of the organisation were happy
and satisfied and the effect of management was
noticeable in the organisation.”

Management is an intangible force that cannot be

seen but its presence can be felt in the way the
organisation functions. The effect of management is = 4 marks
noticeable when targets are met and employees are
happy and satisfied.

26. Q. (a) Explain any two features of ‘motivation’ as an

element of directing function of management.

Ans. Features of ‘motivation’ as an element of

directing function of management (any two):

(i) Motivation is an internal feeling. The urges or

needs of human being which influence human
behaviour are internal.

(ii) Motivation produces goal directed behaviour.

It helps to produce a behaviour in the employee to
improve his performance. =2 x 2

(iii) Motivation can be either positive or negative.

Positive motivation provides positive rewards like
increase in pay, promotion, recognition etc., Negative
motivation uses negative means like punishment,
stopping increments, threatening etc. which also may
induce a person to act in the desired way.
= 4 marks
(iv) Motivation is a complex process
Any type of motivation may not have uniform effect
on all the members.

OR OR
 (b) Explain the following as elements of
communication process:
(i) Message
(ii) Encoding
(iii) Media
(iv) Decoding

Ans. Elements of communication process:

(i) Message:
It is the content of ideas, feelings, suggestions, order,
etc., intended to be communicated.

(ii) Encoding:
It is the process of converting the message into
communication symbols such as words, pictures,
gestures etc. =1x 4

(iii) Media:
It is the path through which encoded message is
transmitted to receiver. The channel may be in written
form, face to face, phone call, Internet etc.

(iv) Decoding:
= 4 marks
It is the process of converting encoded symbols of the
sender.

27. Q. Explain the following as factors affecting the

working capital requirements of a business:
(i) Nature of business
(ii) Credit availed

Ans. Factors affecting working capital requirements

of a business
 (i) Nature of business
A trading organisation usually needs a smaller
amount of working capital compared to a
manufacturing organisation because usually there is
2 marks
no processing of materials.
In a manufacturing business, raw material needs to be
converted into finished goods before any sales
become possible.
Service industries usually do not have to maintain +
inventory require, less working capital.

(ii) Credit availed 2 marks

A firm may get credit from its suppliers. To the
extent it avails the credit on purchases, the
working capital requirement is reduced. = 4 marks

28. Q. (a) State any four objectives of ‘Securities and

Exchange Board of India’.

Ans. Objectives of ‘Securities and Exchange Board of

India’
(i) To regulate stock exchanges and the securities
industry to promote their orderly functioning.

(ii) To protect the rights and interests of investors, = 1x4

particularly individual investors and to guide and
educate them.

(iii) To prevent trading malpractices and achieve a

balance between self regulation by the securities
industry and its statutory regulation.

(iv) To regulate and develop a code of conduct and fair

20
 practices by intermediaries like brokers, merchant = 4 marks
bankers etc., with a view to making them competitive
and professional.

OR OR

(b) State any four functions of Stock Exchange.

Ans. Functions of Stock Exchange (any four):

(i) Stock Exchanges provide liquidity and marketability

to existing securities by giving investors the chance
to disinvest and reinvest.

(ii) They help in determining the prices of securities

through the forces of demand and supply.

(iii) Stock exchanges ensure the investors safety of

transactions and fair deal on the market as they are
well-regulated and their dealings are well-defined
according to the existing legal framework.

(iv) Stock exchanges contribute to economic growth

through the process of disinvestment and =1x4
reinvestment and channelising the savings into most
productive investment avenues.

(v) Stock exchanges spread equity cult by regulating

new issues, better trading practices and taking
effective steps in educating the public about
investments.

(vi) Stock exchanges provide sufficient scope for

speculation within the provisions of law in a
restricted and controlled manner. = 4 marks

(If an examinee has only listed the points, ½ mark for

each point should be awarded.)

21
29. Q. Ankush bought a high-end microwave on
Diwali from a leading electronic store. The microwave
had ISI mark and Ankush diligently went through the
instruction manual so that he could use it properly.
However, due to faulty wiring there was a short-
circuit in the microwave. He called up the consumer
helpline of the company many times, but no solution
was provided by the company. Ankush now decided
to file a case in the consumer court.
(a)Identify and explain the right which Ankush will
exercise.
1 mark for
(b) State two responsibilities which Ankush had identification
fulfilled while purchasing and using the microwave. +
Ans. 1 mark for
explanation
(a) Right to seek redressal
+
The consumer has a right to get relief in case the product
or a service falls short of his expectations. 1 mark for
each
(b) Responsibilities which Ankush had fulfilled while responsibility
purchasing and using the microwave =1x2
(i) Buy only standardised goods as they provide
quality assurance.

(ii) Learn about the risks associated with products

and services, follow manufacturer’s instructions = 4 marks
and use the products safely.

30. Q. Srijan, after completing his bachelor’s degree in

culinary arts from a reputed institute, took over his
family restaurant specialising in South Indian dishes.
This business was promoted by his grandfather many
years back in the form of a company. Now he wants to

22
get the restaurant renovated to open a special section
for bakery products. It is estimated that an
investment of ₹5 crore will be required to execute this
plan. At present the cash flow position of the company
is not strong and fixed operating costs of business are
also high.
Keeping in view the above situation, name with two
reasons, the source of finance which Srijan should
choose for modernization and expansion of his
business. Also explain one more factor, apart from
those stated above which Srijan should keep in mind
while taking this decision.
1 mark
Ans. Equity for naming
Reasons the source
(i) Cash Flow Position: Cash flow position of the +
company is not strong, thus, company is not in a
position to repay the principle along with 1 mark for
interest. each reason
(ii) Fixed Operating Cost: Fixed operating costs of =1x2
business are high which result in higher
business risk and in this situation, its capacity to
use debt is low.
+
While taking the decision to raise finance through
Equity, the company has to take into consideration the
following factor: (any one)

(i) Cost: The cost of raising funds through different

sources are different. A prudent financial manager
would normally opt for a source which is the
cheapest.

(ii) Risk: The risk associated with each of the sources

is different.

23
 (iii) Floatation Costs: Higher the floatation cost, less ½ mark for
attractive the source. naming
(iv) Stock Market Conditions: If the stock markets another
are bullish, equity shares are more easily sold even factor
at high price. +
(v) Control: Control also influences the choice ½ mark for
between debt and equity especially in companies explanation
in which the current holding of management is on = 4 marks
a lower side.

31. Q. Abhishek studied management principles and

techniques of Henri Fayol and F.W. Taylor when he
was in class XII. Now he is trying to apply his
knowledge while doing his business. By using
different techniques and scientifically analysing work
he found one best way of doing the job. By removing
unproductive movements of the workers, he reduces
the time to complete the job. Not only this, to increase
productivity and to regain stamina he started giving
more rest intervals to his employees. He followed no
discrimination policy on account of sex, religion,
caste, etc. in his organisation. He ensured that the
compensation should be fair to both employees and
the organisation.
Identify and explain any two techniques of scientific
management and two principles of general
management adopted by Abhishek.

½ mark for
Ans. Techniques of Scientific Management adopted by
identification
Abhishek (any two):
(i) Method Study +
(ii) Motion Study 1 mark for
(iii) Fatigue Study explanation

24
 Principles of General Management adopted by
Abhishek:
(i) Equity =1½ x 4
(ii) Remuneration = 6 marks

32. Q. F.M. Tech Ltd. is one of the leading information

technology service provider companies in Delhi. To
enable smooth functioning of the enterprise, job
description and rules and procedures related to work
processes are laid down. The company specifies
clearly the boundaries of authority and responsibility
and there is systematic co-ordination among the
various activities to achieve organisational goals.
(a) Identify and explain the ‘Type of organisation’
discussed above.

(b) State any two advantages and two limitations of

the ‘Type of organisation’ identified in (a) above.

Ans. (a) Formal Organisation

1 mark for
Formal organisation refers to the organisation structure
identification
which is designed by the management to accomplish a
particular task. +

(b) Advantages of Formal Organisation (any two): 1 mark for

explanation
(i) It is easier to fix responsibility since mutual
relationships are clearly defined.
+
(ii) It avoids duplication of effort since there is no 1 mark for
ambiguity in the role that each member has to play. Each
Advantage
(iii) It maintains unity of command through an
established chain of command. =1 X 2

(iv) It leads to accomplishment of goals by providing a

25
 framework for the operations to be performed.

(v) It provides stability to the organisation because

there are specific rules to guide behaviour of
employees.
1 mark for
Limitations of formal organisation (any two): each
(i) It may lead to procedural delays as the establishedchain limitation
of command has to be followed which increases the
=1 x2
time taken for decision making.

(ii) It
does not allow any deviations from rigidly laiddown
policies and may not provide adequate recognition to
creative talent.

= 6 marks
(iii) It is difficult to understand all human relationshipsin
an enterprise, hence it does not provide a complete
picture of how an organisation works.
(If an examinee has only listed the points, ½ mark for
each point should be awarded.)

33.
Q. (a) Explain the steps in the staffing process of
½ mark for
management after ‘Placement and Orientation’.
naming
Ans. Steps in staffing process of management +
after‘Placement and Orientation’: 1 mark for
explanation
(i) Training and Development
(ii) Performance Appraisal
=1½ x 4
(iii) Promotion and Career Planning
(iv) Compensation = 6 marks

OR OR
(b) Explain the steps in the selection process of
staffing function of management after ‘Reference ½ mark for
and Background checks’.
26
 Naming
Ans. Steps in the selection process of staffing function
of management after ‘Reference and Background +
checks’: 1 mark for
explanation
(i) Selection Decision
(ii) Medical Examination
=1½ x 4
(iii) Job Offer
(iv) Contract of Employment = 6 marks

34.
Q. (a) Explain the following as functions of marketing:
(i) Marketing Planning

(ii) Product Designing and Development

(iii) Standardisation and Grading
Ans.
(i) Marketing Planning
An important area of work of a marketer is to develop
appropriate marketing plans so that objectives of the 2 marks
organisation can be achieved.
Appropriate marketing plans includes the plan for
increasing the level of production, promotion of the
products, etc. and specifying the action programmes +
to achieve these objectives.
(ii) Product Designing and Development
The design of the product contributes to making the
product attractive to the target customers. 2 marks

A good design can improve performance of a product

and also give it a competitive advantage in the market.

(iii) Standardisation and Grading +

27
 Standardisation refers to producing goods of
2 marks
predetermined specifications, which helps in
achieving uniformity and consistency in the output.
Grading is the process of classification of products
into different groups, on the basis of some of its
important characteristics such as quality, size, etc. = 6 marks

OR OR
(b) ‘The important product related decisions include
decisions about the packaging, labelling and branding
of products.’ Explain these important decisions.
Ans. Packaging
2 marks
Packaging refers to the act of designing and
producing the container or wrapper of a product. +
Packaging is important not only for protection of the
products but also serves as a promotional tool.

Labelling
Labelling refers to designing and developing the 2 marks
label to be put on the package to provide useful
information about the product, its contents, date of
manufacturing, etc. The label may vary from a
simple tag to complex graphics. +

Branding 2 marks
Branding is the process of giving a name or a sign
or a symbol etc., to a product. It helps in
identifying and distinguishing a marketer’s
products from competitors’ products. = 6 marks

28