CBSE Business Studies Past year paper Delhi (Set - 1) Solution - 2017, Class 12 | Additional Study Material for Commerce PDF Download

 Page 1


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
Answer 1 
Motivation as an element of directing can be understood as a process of inducing 
employees to work towards the desired goals and objectives. It implies encouraging 
workers to work to the best of their capabilities towards the common goals and objectives 
of the organisation.  
Answer 2 
Basis Formal Organisation Informal Organisation 
Origin Takes place as a result of 
company rules and policies 
Takes place as a result of 
social interaction 
 
Answer 3 
From the pool of candidates as created under the recruitment process, the most 
appropriate and suitable candidate is selected. Hence, a rigorous procedure comprising a 
series of tests and interviews is followed. Candidates who are successfully able to pass the 
process are offered an employment contract, while the others are rejected.  
 
Answer 4 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 5 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 6 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Usable benefit is used by the company to promote sales. 
Answer 9 
i. Unity of Command: According to this principle, an employee should receive 
instructions or orders from only one superior. In other words, he should be 
answerable to only one superior. Violation of this principle leads to confusion and 
chaos in the minds of the subordinate.  
Page 2


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
Answer 1 
Motivation as an element of directing can be understood as a process of inducing 
employees to work towards the desired goals and objectives. It implies encouraging 
workers to work to the best of their capabilities towards the common goals and objectives 
of the organisation.  
Answer 2 
Basis Formal Organisation Informal Organisation 
Origin Takes place as a result of 
company rules and policies 
Takes place as a result of 
social interaction 
 
Answer 3 
From the pool of candidates as created under the recruitment process, the most 
appropriate and suitable candidate is selected. Hence, a rigorous procedure comprising a 
series of tests and interviews is followed. Candidates who are successfully able to pass the 
process are offered an employment contract, while the others are rejected.  
 
Answer 4 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 5 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 6 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Usable benefit is used by the company to promote sales. 
Answer 9 
i. Unity of Command: According to this principle, an employee should receive 
instructions or orders from only one superior. In other words, he should be 
answerable to only one superior. Violation of this principle leads to confusion and 
chaos in the minds of the subordinate.  
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
ii. Equity: According to this principle, there must be equal and fair treatment of various 
employees in an organisation. There must not be any discrimination on grounds such 
as religion, gender and caste. Force or kindliness in behaviour as required may be 
used equally for all employees. Such equality in treatment promotes in building a 
healthy and friendly work environment.  
Answer 10 
Importance of planning function of management 
i. Focus on objectives: Planning starts when an objective is set and a proper planning 
gives boost to a well-organised and goal-oriented management. Plans ensure that the 
desired objective is attained economically and quickly, if possible. The managers must 
make sure that the plans made are purposeful, specific, realistic and clear and should 
adhere to the company’s strategies, procedures and policies. For example, if sales 
target is to be achieved then the plans must be made in sync with this objective. 
ii. Acts as a stepping stone: A goal is achieved through planning, organizing, staffing, 
directing and controlling. Planning, thus, serves as the stepping stone for all other 
functions of an organisation. The rest of the functions are conducted within the 
framework of the plans drawn i.e. the other functions are interrelated and 
interdependent on planning.  Thus, planning acts as the primary function for all  the 
organisations. 
iii. Pervasiveness: Planning must be done at all levels of the management and in all 
departments of the organisation. However, its scope differs along the various 
dimensions of business levels. For example, the top level managers have to chalk out 
the policies regarding the overall management, and whereas the middle level 
managers plan out the authority to be assigned to the subordinates or departmental 
planning. On the other hand, the lower level managers have to perform day-to-day 
operational planning and make out small targets.  
Answer 11 
In an organisation, a supervisor is a person responsible for directly overseeing the various 
activities of workers. The following functions are performed by a supervisor:  
i. A supervisor guides workers and provides support to them. He ensures that 
workers work with harmony and unity.  
ii. He serves as the link of communication between the manager and workers. While 
on one hand, he communicates the information and ideas of the management to 
workers, on the other hand, he communicates the problems of workers to managers. 
In other words, the management and workers communicate through the supervisor.  
iii. It is the responsibility of the supervisor to ensure that the work is carried out 
efficiently and smoothly and that the set targets are met.  
 
 
Page 3


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
Answer 1 
Motivation as an element of directing can be understood as a process of inducing 
employees to work towards the desired goals and objectives. It implies encouraging 
workers to work to the best of their capabilities towards the common goals and objectives 
of the organisation.  
Answer 2 
Basis Formal Organisation Informal Organisation 
Origin Takes place as a result of 
company rules and policies 
Takes place as a result of 
social interaction 
 
Answer 3 
From the pool of candidates as created under the recruitment process, the most 
appropriate and suitable candidate is selected. Hence, a rigorous procedure comprising a 
series of tests and interviews is followed. Candidates who are successfully able to pass the 
process are offered an employment contract, while the others are rejected.  
 
Answer 4 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 5 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 6 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Usable benefit is used by the company to promote sales. 
Answer 9 
i. Unity of Command: According to this principle, an employee should receive 
instructions or orders from only one superior. In other words, he should be 
answerable to only one superior. Violation of this principle leads to confusion and 
chaos in the minds of the subordinate.  
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
ii. Equity: According to this principle, there must be equal and fair treatment of various 
employees in an organisation. There must not be any discrimination on grounds such 
as religion, gender and caste. Force or kindliness in behaviour as required may be 
used equally for all employees. Such equality in treatment promotes in building a 
healthy and friendly work environment.  
Answer 10 
Importance of planning function of management 
i. Focus on objectives: Planning starts when an objective is set and a proper planning 
gives boost to a well-organised and goal-oriented management. Plans ensure that the 
desired objective is attained economically and quickly, if possible. The managers must 
make sure that the plans made are purposeful, specific, realistic and clear and should 
adhere to the company’s strategies, procedures and policies. For example, if sales 
target is to be achieved then the plans must be made in sync with this objective. 
ii. Acts as a stepping stone: A goal is achieved through planning, organizing, staffing, 
directing and controlling. Planning, thus, serves as the stepping stone for all other 
functions of an organisation. The rest of the functions are conducted within the 
framework of the plans drawn i.e. the other functions are interrelated and 
interdependent on planning.  Thus, planning acts as the primary function for all  the 
organisations. 
iii. Pervasiveness: Planning must be done at all levels of the management and in all 
departments of the organisation. However, its scope differs along the various 
dimensions of business levels. For example, the top level managers have to chalk out 
the policies regarding the overall management, and whereas the middle level 
managers plan out the authority to be assigned to the subordinates or departmental 
planning. On the other hand, the lower level managers have to perform day-to-day 
operational planning and make out small targets.  
Answer 11 
In an organisation, a supervisor is a person responsible for directly overseeing the various 
activities of workers. The following functions are performed by a supervisor:  
i. A supervisor guides workers and provides support to them. He ensures that 
workers work with harmony and unity.  
ii. He serves as the link of communication between the manager and workers. While 
on one hand, he communicates the information and ideas of the management to 
workers, on the other hand, he communicates the problems of workers to managers. 
In other words, the management and workers communicate through the supervisor.  
iii. It is the responsibility of the supervisor to ensure that the work is carried out 
efficiently and smoothly and that the set targets are met.  
 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
Answer 12 
Financial planning has been discussed in the paragraph. Financial planning involves 
identifying the sources from where the funds can be obtained and ensuring that the 
required funds are available to the firm as and when needed. In this way, financial planning 
ensures that the various functions of the organisation are carried out smoothly.  
 
Two main objectives of financial planning: 
i. Identifying the sources from where the funds can be raised and ensuring that the 
required funds are available to the firm as and when needed.  For this, under financial 
planning, an estimation is made regarding the amount of funds which would be 
required for various business operations. In addition, an estimation is made regarding 
the time at which the funds would be needed. 
ii. To ensure that there is proper utilisation of funds in the sense that there is neither 
surplus nor inadequate funding by the firm. In other words, it ensures that situations 
of both excess or shortage of funds are avoided. This is because while inadequate 
funds obstruct operations of the firm, excess funding leads to wasteful expenditure by 
the firm. Thus, proper financial planning ensures optimal utilisation of funds by the 
firm. 
Answer 13 
The following are the various types of thinking that guided Ginika, Tanish and Rohit in the 
marketing efforts of their business. 
i. Societal marketing concept- According to the societal concept of marketing, 
organisations must work according to the needs and desires of the target market. 
The organisation must identify what is required by target customers and 
accordingly work towards delivering the results in the most effective and efficient 
manner. In addition, other aspects of consumer well-being (namely ecological, 
ethical and social) must be taken into consideration by the organisation. 
ii. Selling concept- As per selling concept, customers would not buy or not buy 
enough unless they are adequately convinced and motivated for the same. In order 
to sell the products, products should be aggressively promoted. In this regard, 
advertising, personal selling and sales promotion techniques can be used by the 
organisation. 
iii. Marketing concept- According to the marketing concept of marketing 
management, the primary focus of business should be on customer satisfaction. It is 
based on the belief that customer satisfaction is the most important factor which 
determines the success of an organisation. A business must identify the target 
customer base and the market for which the efforts of the market should be made. It 
must keep in mind that it can survive in the long run only if it works effectively 
towards customer satisfaction. 
 
 
 
Page 4


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
Answer 1 
Motivation as an element of directing can be understood as a process of inducing 
employees to work towards the desired goals and objectives. It implies encouraging 
workers to work to the best of their capabilities towards the common goals and objectives 
of the organisation.  
Answer 2 
Basis Formal Organisation Informal Organisation 
Origin Takes place as a result of 
company rules and policies 
Takes place as a result of 
social interaction 
 
Answer 3 
From the pool of candidates as created under the recruitment process, the most 
appropriate and suitable candidate is selected. Hence, a rigorous procedure comprising a 
series of tests and interviews is followed. Candidates who are successfully able to pass the 
process are offered an employment contract, while the others are rejected.  
 
Answer 4 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 5 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 6 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Usable benefit is used by the company to promote sales. 
Answer 9 
i. Unity of Command: According to this principle, an employee should receive 
instructions or orders from only one superior. In other words, he should be 
answerable to only one superior. Violation of this principle leads to confusion and 
chaos in the minds of the subordinate.  
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
ii. Equity: According to this principle, there must be equal and fair treatment of various 
employees in an organisation. There must not be any discrimination on grounds such 
as religion, gender and caste. Force or kindliness in behaviour as required may be 
used equally for all employees. Such equality in treatment promotes in building a 
healthy and friendly work environment.  
Answer 10 
Importance of planning function of management 
i. Focus on objectives: Planning starts when an objective is set and a proper planning 
gives boost to a well-organised and goal-oriented management. Plans ensure that the 
desired objective is attained economically and quickly, if possible. The managers must 
make sure that the plans made are purposeful, specific, realistic and clear and should 
adhere to the company’s strategies, procedures and policies. For example, if sales 
target is to be achieved then the plans must be made in sync with this objective. 
ii. Acts as a stepping stone: A goal is achieved through planning, organizing, staffing, 
directing and controlling. Planning, thus, serves as the stepping stone for all other 
functions of an organisation. The rest of the functions are conducted within the 
framework of the plans drawn i.e. the other functions are interrelated and 
interdependent on planning.  Thus, planning acts as the primary function for all  the 
organisations. 
iii. Pervasiveness: Planning must be done at all levels of the management and in all 
departments of the organisation. However, its scope differs along the various 
dimensions of business levels. For example, the top level managers have to chalk out 
the policies regarding the overall management, and whereas the middle level 
managers plan out the authority to be assigned to the subordinates or departmental 
planning. On the other hand, the lower level managers have to perform day-to-day 
operational planning and make out small targets.  
Answer 11 
In an organisation, a supervisor is a person responsible for directly overseeing the various 
activities of workers. The following functions are performed by a supervisor:  
i. A supervisor guides workers and provides support to them. He ensures that 
workers work with harmony and unity.  
ii. He serves as the link of communication between the manager and workers. While 
on one hand, he communicates the information and ideas of the management to 
workers, on the other hand, he communicates the problems of workers to managers. 
In other words, the management and workers communicate through the supervisor.  
iii. It is the responsibility of the supervisor to ensure that the work is carried out 
efficiently and smoothly and that the set targets are met.  
 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
Answer 12 
Financial planning has been discussed in the paragraph. Financial planning involves 
identifying the sources from where the funds can be obtained and ensuring that the 
required funds are available to the firm as and when needed. In this way, financial planning 
ensures that the various functions of the organisation are carried out smoothly.  
 
Two main objectives of financial planning: 
i. Identifying the sources from where the funds can be raised and ensuring that the 
required funds are available to the firm as and when needed.  For this, under financial 
planning, an estimation is made regarding the amount of funds which would be 
required for various business operations. In addition, an estimation is made regarding 
the time at which the funds would be needed. 
ii. To ensure that there is proper utilisation of funds in the sense that there is neither 
surplus nor inadequate funding by the firm. In other words, it ensures that situations 
of both excess or shortage of funds are avoided. This is because while inadequate 
funds obstruct operations of the firm, excess funding leads to wasteful expenditure by 
the firm. Thus, proper financial planning ensures optimal utilisation of funds by the 
firm. 
Answer 13 
The following are the various types of thinking that guided Ginika, Tanish and Rohit in the 
marketing efforts of their business. 
i. Societal marketing concept- According to the societal concept of marketing, 
organisations must work according to the needs and desires of the target market. 
The organisation must identify what is required by target customers and 
accordingly work towards delivering the results in the most effective and efficient 
manner. In addition, other aspects of consumer well-being (namely ecological, 
ethical and social) must be taken into consideration by the organisation. 
ii. Selling concept- As per selling concept, customers would not buy or not buy 
enough unless they are adequately convinced and motivated for the same. In order 
to sell the products, products should be aggressively promoted. In this regard, 
advertising, personal selling and sales promotion techniques can be used by the 
organisation. 
iii. Marketing concept- According to the marketing concept of marketing 
management, the primary focus of business should be on customer satisfaction. It is 
based on the belief that customer satisfaction is the most important factor which 
determines the success of an organisation. A business must identify the target 
customer base and the market for which the efforts of the market should be made. It 
must keep in mind that it can survive in the long run only if it works effectively 
towards customer satisfaction. 
 
 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
Answer 14 
(a) Ashutosh Goenka is at the middle level of management. Managers at the middle level 
are the ones who link the top management with the operational management.  
(b) Three more functions required to be performed by Ashutosh Goenka are 
? To suitably assign the required tasks and duties to various personnel 
? To continuously motivate the personnel to work towards the achievement of 
common goals and objectives of the organisation 
? Coordinating the functions of the division with the functions of other divisions or 
division heads 
 
Answer 15 
Sandhya analysed and found that there were many unnecessary obstructions which could 
be solved through fixing standard time and discontinuing the sale of flavours not 
demanded in the market. Hence, Sandhya adopted the following two techniques of 
scientific management to solve the problem of the business:  
i. Time Study: According to this technique, there must be a standard time limit for the 
completion of a task. With repeated observations with regard to time taken in 
completing a task, a standard limit is set. This helps in deciding the number of 
employees which would be required in completing a task. For example, if it is 
observed that one person can manufacture one unit of a commodity in two hours, 
then in a working day of 8 hours, each worker can manufacture 4 units of the 
commodity.  
ii. Simplification and Standardisation of Work: Standardisation refers to a process 
wherein standards are set for any production activity. The standard is then used as a 
benchmark for evaluating the tasks done. In simplification, unnecessary varieties in 
design, size etc. which add to the cost should be avoided. This technique aims at full 
and efficient utilisation of resources, reducing inventories and increasing the 
turnover. 
 
Answer 16 
i. Objectives: This should include a detailed overview of each objective factors 
needed to achieve those goals, where, when and how it should be performed and the 
expected outcome of it.  Managers need to state these objectives very clearly for 
each and every department in the organisation so that right direction can be taken 
for achieving goals. 
ii. Budget: A budget is a statement of expected results expressed in numerical terms. It 
is a plan which drafts the desired results in quantifiable figures. For instance, a 
budget on production defines the number of machines or the number of workers 
which would be required and the expected units of products which would be 
produced. This representation in quantifiable figures makes it easier to compare the 
actual results with the expected results, and thereby take corrective actions.  
Page 5


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
Answer 1 
Motivation as an element of directing can be understood as a process of inducing 
employees to work towards the desired goals and objectives. It implies encouraging 
workers to work to the best of their capabilities towards the common goals and objectives 
of the organisation.  
Answer 2 
Basis Formal Organisation Informal Organisation 
Origin Takes place as a result of 
company rules and policies 
Takes place as a result of 
social interaction 
 
Answer 3 
From the pool of candidates as created under the recruitment process, the most 
appropriate and suitable candidate is selected. Hence, a rigorous procedure comprising a 
series of tests and interviews is followed. Candidates who are successfully able to pass the 
process are offered an employment contract, while the others are rejected.  
 
Answer 4 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 5 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 6 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Usable benefit is used by the company to promote sales. 
Answer 9 
i. Unity of Command: According to this principle, an employee should receive 
instructions or orders from only one superior. In other words, he should be 
answerable to only one superior. Violation of this principle leads to confusion and 
chaos in the minds of the subordinate.  
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
ii. Equity: According to this principle, there must be equal and fair treatment of various 
employees in an organisation. There must not be any discrimination on grounds such 
as religion, gender and caste. Force or kindliness in behaviour as required may be 
used equally for all employees. Such equality in treatment promotes in building a 
healthy and friendly work environment.  
Answer 10 
Importance of planning function of management 
i. Focus on objectives: Planning starts when an objective is set and a proper planning 
gives boost to a well-organised and goal-oriented management. Plans ensure that the 
desired objective is attained economically and quickly, if possible. The managers must 
make sure that the plans made are purposeful, specific, realistic and clear and should 
adhere to the company’s strategies, procedures and policies. For example, if sales 
target is to be achieved then the plans must be made in sync with this objective. 
ii. Acts as a stepping stone: A goal is achieved through planning, organizing, staffing, 
directing and controlling. Planning, thus, serves as the stepping stone for all other 
functions of an organisation. The rest of the functions are conducted within the 
framework of the plans drawn i.e. the other functions are interrelated and 
interdependent on planning.  Thus, planning acts as the primary function for all  the 
organisations. 
iii. Pervasiveness: Planning must be done at all levels of the management and in all 
departments of the organisation. However, its scope differs along the various 
dimensions of business levels. For example, the top level managers have to chalk out 
the policies regarding the overall management, and whereas the middle level 
managers plan out the authority to be assigned to the subordinates or departmental 
planning. On the other hand, the lower level managers have to perform day-to-day 
operational planning and make out small targets.  
Answer 11 
In an organisation, a supervisor is a person responsible for directly overseeing the various 
activities of workers. The following functions are performed by a supervisor:  
i. A supervisor guides workers and provides support to them. He ensures that 
workers work with harmony and unity.  
ii. He serves as the link of communication between the manager and workers. While 
on one hand, he communicates the information and ideas of the management to 
workers, on the other hand, he communicates the problems of workers to managers. 
In other words, the management and workers communicate through the supervisor.  
iii. It is the responsibility of the supervisor to ensure that the work is carried out 
efficiently and smoothly and that the set targets are met.  
 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
Answer 12 
Financial planning has been discussed in the paragraph. Financial planning involves 
identifying the sources from where the funds can be obtained and ensuring that the 
required funds are available to the firm as and when needed. In this way, financial planning 
ensures that the various functions of the organisation are carried out smoothly.  
 
Two main objectives of financial planning: 
i. Identifying the sources from where the funds can be raised and ensuring that the 
required funds are available to the firm as and when needed.  For this, under financial 
planning, an estimation is made regarding the amount of funds which would be 
required for various business operations. In addition, an estimation is made regarding 
the time at which the funds would be needed. 
ii. To ensure that there is proper utilisation of funds in the sense that there is neither 
surplus nor inadequate funding by the firm. In other words, it ensures that situations 
of both excess or shortage of funds are avoided. This is because while inadequate 
funds obstruct operations of the firm, excess funding leads to wasteful expenditure by 
the firm. Thus, proper financial planning ensures optimal utilisation of funds by the 
firm. 
Answer 13 
The following are the various types of thinking that guided Ginika, Tanish and Rohit in the 
marketing efforts of their business. 
i. Societal marketing concept- According to the societal concept of marketing, 
organisations must work according to the needs and desires of the target market. 
The organisation must identify what is required by target customers and 
accordingly work towards delivering the results in the most effective and efficient 
manner. In addition, other aspects of consumer well-being (namely ecological, 
ethical and social) must be taken into consideration by the organisation. 
ii. Selling concept- As per selling concept, customers would not buy or not buy 
enough unless they are adequately convinced and motivated for the same. In order 
to sell the products, products should be aggressively promoted. In this regard, 
advertising, personal selling and sales promotion techniques can be used by the 
organisation. 
iii. Marketing concept- According to the marketing concept of marketing 
management, the primary focus of business should be on customer satisfaction. It is 
based on the belief that customer satisfaction is the most important factor which 
determines the success of an organisation. A business must identify the target 
customer base and the market for which the efforts of the market should be made. It 
must keep in mind that it can survive in the long run only if it works effectively 
towards customer satisfaction. 
 
 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
Answer 14 
(a) Ashutosh Goenka is at the middle level of management. Managers at the middle level 
are the ones who link the top management with the operational management.  
(b) Three more functions required to be performed by Ashutosh Goenka are 
? To suitably assign the required tasks and duties to various personnel 
? To continuously motivate the personnel to work towards the achievement of 
common goals and objectives of the organisation 
? Coordinating the functions of the division with the functions of other divisions or 
division heads 
 
Answer 15 
Sandhya analysed and found that there were many unnecessary obstructions which could 
be solved through fixing standard time and discontinuing the sale of flavours not 
demanded in the market. Hence, Sandhya adopted the following two techniques of 
scientific management to solve the problem of the business:  
i. Time Study: According to this technique, there must be a standard time limit for the 
completion of a task. With repeated observations with regard to time taken in 
completing a task, a standard limit is set. This helps in deciding the number of 
employees which would be required in completing a task. For example, if it is 
observed that one person can manufacture one unit of a commodity in two hours, 
then in a working day of 8 hours, each worker can manufacture 4 units of the 
commodity.  
ii. Simplification and Standardisation of Work: Standardisation refers to a process 
wherein standards are set for any production activity. The standard is then used as a 
benchmark for evaluating the tasks done. In simplification, unnecessary varieties in 
design, size etc. which add to the cost should be avoided. This technique aims at full 
and efficient utilisation of resources, reducing inventories and increasing the 
turnover. 
 
Answer 16 
i. Objectives: This should include a detailed overview of each objective factors 
needed to achieve those goals, where, when and how it should be performed and the 
expected outcome of it.  Managers need to state these objectives very clearly for 
each and every department in the organisation so that right direction can be taken 
for achieving goals. 
ii. Budget: A budget is a statement of expected results expressed in numerical terms. It 
is a plan which drafts the desired results in quantifiable figures. For instance, a 
budget on production defines the number of machines or the number of workers 
which would be required and the expected units of products which would be 
produced. This representation in quantifiable figures makes it easier to compare the 
actual results with the expected results, and thereby take corrective actions.  
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 1 – 2017 Solution 
 
     
Answer 17 
Internal sources: Internal sources of recruitment are the ones where job vacancies are 
filled from within the organisation. It can take the following forms: 
a. Transfers: A suitable person identified for a profile is shifted from another department 
to the concerned department. It may lead to changes in duties and responsibilities and 
working conditions. This is helpful in avoiding termination and in removing individual 
problems and grievances. 
b. Promotions: Vacant positions at the higher level are filled by suitably promoting 
employees at the lower level. To continue to work with greater efficiency and productivity, 
an employee needs encouragement and motivation. In this regard, promotion plays an 
important role. The promotion can be in the form of position and pay. Promotion provides 
a great deal of job satisfaction to the employee and serves the long-term interests of 
employees. 
 
Answer 18 
i. The function being performed by the market in the given case is facilitating 
economic growth. By facilitating the sale and purchase of securities, the stock 
market helps in channelising the savings to most productive investment. This in 
turn promotes capital formation and economic growth.  
ii. Three other functions performed by the market area 
a. Provides Liquidity and Marketability: The stock exchange provides a platform 
where sale and purchase of existing securities can take place. In this way, the stock 
exchange facilitates the conversion of securities to cash as and when required. In 
addition, it renders liquidity to long-term securities and can be converted to 
medium-term and short-term securities.  
b. Determination of Prices: A stock exchange acts as a link for the interaction of 
buyers and sellers. In other words, it helps in the interaction of demand and supply 
forces, and thereby helps in establishing the price of securities.  
c. Fair and Safe Market: A stock exchange provides a safe and fair market for trading 
of securities. It functions according to a well-regulated legal framework.  
Answer 19 
(a) The leadership style followed by Umang Gupta is Democratic or Participative 
leadership. 
Quote for Democratic leadership: ‘He had a meeting with his employees in which 
accurate and speedy processing of orders was planned. Everybody agreed to work as team 
because the behaviour of Umang Gupta was positive towards employees of the 
organisation.’