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.’
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