CBSE Business Studies Past year paper Delhi (Set - 3) Solution - 2017, Class 12 | Additional Study Material for Commerce PDF Download

 Page 1


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
Answer 1 
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 2 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 3 
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 4 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 5 
Usable benefit is used by the company to promote sales. 
Answer 6 
Private placement method is used by the company to raise additional capital. 
 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 9 
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.  
 
 
Page 2


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
Answer 1 
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 2 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 3 
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 4 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 5 
Usable benefit is used by the company to promote sales. 
Answer 6 
Private placement method is used by the company to raise additional capital. 
 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 9 
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.  
 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
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 10 
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. 
 
Answer 11 
i. Order: According to this principle, for efficiency to improve, there must be proper 
arrangement of things in the organisation. In other words, material things and people 
should be at the right place. This helps in smooth operations. For instance, files and 
other data must be arranged in proper order so that they can be easily located and used 
when required. 
ii. Initiative: According to this principle, there must be motivation and an incentive 
among employees to work. They must be encouraged to suggest new ideas. However, it 
Page 3


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
Answer 1 
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 2 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 3 
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 4 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 5 
Usable benefit is used by the company to promote sales. 
Answer 6 
Private placement method is used by the company to raise additional capital. 
 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 9 
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.  
 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
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 10 
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. 
 
Answer 11 
i. Order: According to this principle, for efficiency to improve, there must be proper 
arrangement of things in the organisation. In other words, material things and people 
should be at the right place. This helps in smooth operations. For instance, files and 
other data must be arranged in proper order so that they can be easily located and used 
when required. 
ii. Initiative: According to this principle, there must be motivation and an incentive 
among employees to work. They must be encouraged to suggest new ideas. However, it 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
must be ensured that the new initiatives and ideas are in accordance with the generally 
followed rules and practices in the organisation. For example, employees can be asked 
to provide inputs regarding how to improve sales. 
 
Answer 12 
Three feature of planning: 
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 13 
Measures to overcome Barriers in Communication  
Some measures which can be adopted to overcome various barriers of communication:  
i. The understanding level of the receiver must be kept in mind while providing 
information.  
ii. The language, tone and content of the information should be such that it does not 
harm the sentiments of the receiver. 
iii. While communicating, the receiver must be regularly prompted to respond so as to 
ensure that information is being understood.  
iv. The sender must ensure that the information provided is complete in all respects.  
v. Both sender and receiver must be clear with regard to the basic idea of the 
communication.  
vi. The sender must also be a patient listener and invite response and communication 
from the receiver as well. 
 
Page 4


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
Answer 1 
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 2 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 3 
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 4 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 5 
Usable benefit is used by the company to promote sales. 
Answer 6 
Private placement method is used by the company to raise additional capital. 
 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 9 
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.  
 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
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 10 
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. 
 
Answer 11 
i. Order: According to this principle, for efficiency to improve, there must be proper 
arrangement of things in the organisation. In other words, material things and people 
should be at the right place. This helps in smooth operations. For instance, files and 
other data must be arranged in proper order so that they can be easily located and used 
when required. 
ii. Initiative: According to this principle, there must be motivation and an incentive 
among employees to work. They must be encouraged to suggest new ideas. However, it 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
must be ensured that the new initiatives and ideas are in accordance with the generally 
followed rules and practices in the organisation. For example, employees can be asked 
to provide inputs regarding how to improve sales. 
 
Answer 12 
Three feature of planning: 
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 13 
Measures to overcome Barriers in Communication  
Some measures which can be adopted to overcome various barriers of communication:  
i. The understanding level of the receiver must be kept in mind while providing 
information.  
ii. The language, tone and content of the information should be such that it does not 
harm the sentiments of the receiver. 
iii. While communicating, the receiver must be regularly prompted to respond so as to 
ensure that information is being understood.  
iv. The sender must ensure that the information provided is complete in all respects.  
v. Both sender and receiver must be clear with regard to the basic idea of the 
communication.  
vi. The sender must also be a patient listener and invite response and communication 
from the receiver as well. 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
Answer 14 
i. Strategy: Strategy refers to a broad outline for the business of an organisation. 
Strategic decisions mainly include the decision whether to continue on the same 
business lines or to adapt new organisational activities or to bring about any major 
kind of change so as to make a dominant stand for itself in the competitive market.  It 
has three broad objectives: 
a. To determine the objectives 
b. To decide the course of action 
c. To allocate necessary resources for the achievement of the objectives  
Few strategic decisions which a business organisation may look out for are  
a. Deciding about which line of business should be taken  
b. Whether a new line of production should be adopted or not 
c. What position the company should aim for in the existing market 
d. What kind of pricing policy should be used  
 
ii. Policies: Policies are the statements that act as a guide to channelise the efforts of the 
organisation in a particular direction. They provide the basis for the interpretation of 
the organisation's strategies and define broad parameters for the functions of the 
management. They are usually flexible in nature. With strategies and policies the 
company would be able to draft the plan and take steps to survive in the increased 
market competition. 
Answer 15 
(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 16 
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, 
Page 5


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
Answer 1 
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 2 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 3 
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 4 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions. 
Answer 5 
Usable benefit is used by the company to promote sales. 
Answer 6 
Private placement method is used by the company to raise additional capital. 
 
Answer 7 
Private placement method is used by the company to raise additional capital. 
 
Answer 8 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
Answer 9 
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.  
 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
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 10 
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. 
 
Answer 11 
i. Order: According to this principle, for efficiency to improve, there must be proper 
arrangement of things in the organisation. In other words, material things and people 
should be at the right place. This helps in smooth operations. For instance, files and 
other data must be arranged in proper order so that they can be easily located and used 
when required. 
ii. Initiative: According to this principle, there must be motivation and an incentive 
among employees to work. They must be encouraged to suggest new ideas. However, it 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
must be ensured that the new initiatives and ideas are in accordance with the generally 
followed rules and practices in the organisation. For example, employees can be asked 
to provide inputs regarding how to improve sales. 
 
Answer 12 
Three feature of planning: 
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 13 
Measures to overcome Barriers in Communication  
Some measures which can be adopted to overcome various barriers of communication:  
i. The understanding level of the receiver must be kept in mind while providing 
information.  
ii. The language, tone and content of the information should be such that it does not 
harm the sentiments of the receiver. 
iii. While communicating, the receiver must be regularly prompted to respond so as to 
ensure that information is being understood.  
iv. The sender must ensure that the information provided is complete in all respects.  
v. Both sender and receiver must be clear with regard to the basic idea of the 
communication.  
vi. The sender must also be a patient listener and invite response and communication 
from the receiver as well. 
 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
Answer 14 
i. Strategy: Strategy refers to a broad outline for the business of an organisation. 
Strategic decisions mainly include the decision whether to continue on the same 
business lines or to adapt new organisational activities or to bring about any major 
kind of change so as to make a dominant stand for itself in the competitive market.  It 
has three broad objectives: 
a. To determine the objectives 
b. To decide the course of action 
c. To allocate necessary resources for the achievement of the objectives  
Few strategic decisions which a business organisation may look out for are  
a. Deciding about which line of business should be taken  
b. Whether a new line of production should be adopted or not 
c. What position the company should aim for in the existing market 
d. What kind of pricing policy should be used  
 
ii. Policies: Policies are the statements that act as a guide to channelise the efforts of the 
organisation in a particular direction. They provide the basis for the interpretation of 
the organisation's strategies and define broad parameters for the functions of the 
management. They are usually flexible in nature. With strategies and policies the 
company would be able to draft the plan and take steps to survive in the increased 
market competition. 
Answer 15 
(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 16 
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, 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 3 – 2017 Solution 
 
     
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 17 
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 18 
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.’