Page 1
MARKING SCHEME
BUSINESS STUDIES
2022-23
Answers
Marks
1
b) Departmentalization
1
2
a) Uncertainty
1
3
d) Heads do not get training for top management positions.
1
4
a) Technological and Social
1
5
b) Management creates a dynamic organization
1
6 a) Internet connectivity is a prerequisite 1
7
c) It helps in tapping useful resources
1
8
b) Social
1
9
c) It is both forward looking and backward looking
1
10
c) Controlling
1
11
a) Organization structure
1
12 d) Both the statements are false
1
Page 2
MARKING SCHEME
BUSINESS STUDIES
2022-23
Answers
Marks
1
b) Departmentalization
1
2
a) Uncertainty
1
3
d) Heads do not get training for top management positions.
1
4
a) Technological and Social
1
5
b) Management creates a dynamic organization
1
6 a) Internet connectivity is a prerequisite 1
7
c) It helps in tapping useful resources
1
8
b) Social
1
9
c) It is both forward looking and backward looking
1
10
c) Controlling
1
11
a) Organization structure
1
12 d) Both the statements are false
1
13
(a) (ii), (iii), (i)
1
14
b) Unique order code
1
15
d) physical distribution
1
16
( C )Securities Exchange Board of India performs the regulatory function of
controlling insider trading and imposing penalties for such practices.
1
17
d ).Societal Marketing concept
1
18 (a) Utility and demand of the product 1
19
a) It is a personal form of communication
1
20
d). (ii);(iii),(iv);(i)
1
21
Coordination
The process by which a manager synchronizes the activities of different
departments is known as coordination.
Coordination is the force that binds all the other functions of management. It
is the common thread that runs through all activities. It is implicit and inherent
in all functions of an organization.
1
(1X2)
22
Merits of external sources: (Any three)
1. Qualified personnel: By using external sources of recruitment, the
management can attract qualified and trained people to apply for
vacant jobs in the organization.
2. Wider choice: When vacancies are advertised wisely, a large number of
applicants from outside the organization can apply. The management
has a wider choice while selecting the people for employment.
3. Fresh Talent: The present employees may be insufficient or they may
not fulfill the specifications of the jobs to be filled. External
recruitment provides wider choice and brings new blood in the
organization.
4. Competitive spirit: If a company taps external sources, the existing
sources, the existing staff will have to compete with the outsiders.
They will work harder to show better performance.
(1X3=3)
½ mark for the
heading and ½
for the
explanation
23
Critical point control: It is neither economical nor easy to keep a check on each
and every activity in an organization.
Control should therefore focus on key result areas which are critical to the
success of an organization.
(2+1 = 3)
Page 3
MARKING SCHEME
BUSINESS STUDIES
2022-23
Answers
Marks
1
b) Departmentalization
1
2
a) Uncertainty
1
3
d) Heads do not get training for top management positions.
1
4
a) Technological and Social
1
5
b) Management creates a dynamic organization
1
6 a) Internet connectivity is a prerequisite 1
7
c) It helps in tapping useful resources
1
8
b) Social
1
9
c) It is both forward looking and backward looking
1
10
c) Controlling
1
11
a) Organization structure
1
12 d) Both the statements are false
1
13
(a) (ii), (iii), (i)
1
14
b) Unique order code
1
15
d) physical distribution
1
16
( C )Securities Exchange Board of India performs the regulatory function of
controlling insider trading and imposing penalties for such practices.
1
17
d ).Societal Marketing concept
1
18 (a) Utility and demand of the product 1
19
a) It is a personal form of communication
1
20
d). (ii);(iii),(iv);(i)
1
21
Coordination
The process by which a manager synchronizes the activities of different
departments is known as coordination.
Coordination is the force that binds all the other functions of management. It
is the common thread that runs through all activities. It is implicit and inherent
in all functions of an organization.
1
(1X2)
22
Merits of external sources: (Any three)
1. Qualified personnel: By using external sources of recruitment, the
management can attract qualified and trained people to apply for
vacant jobs in the organization.
2. Wider choice: When vacancies are advertised wisely, a large number of
applicants from outside the organization can apply. The management
has a wider choice while selecting the people for employment.
3. Fresh Talent: The present employees may be insufficient or they may
not fulfill the specifications of the jobs to be filled. External
recruitment provides wider choice and brings new blood in the
organization.
4. Competitive spirit: If a company taps external sources, the existing
sources, the existing staff will have to compete with the outsiders.
They will work harder to show better performance.
(1X3=3)
½ mark for the
heading and ½
for the
explanation
23
Critical point control: It is neither economical nor easy to keep a check on each
and every activity in an organization.
Control should therefore focus on key result areas which are critical to the
success of an organization.
(2+1 = 3)
These KRAs are set as the critical points. If anything goes wrong at the critical
points, the entire organization suffers.
For instance, in a manufacturing organization, an increase of 5% in the labour
cost may be more troublesome than a 15% increase in postal charges.
OR
Management by Exception: Management by exception, which is often referred
to as control by exception, is an important principle of management control
based on the belief that an attempt to control everything results in controlling
nothing.
Thus, only significant deviations which go beyond the permissible limit should
be brought to the notice of the management.
For instance, if the plans lay down 2% increase in labour cost as an acceptable
range of deviation in a manufacturing organization, only an increase in labour
cost beyond 2% should be brought to the notice of the management. However,
in case of major deviation from the standard (say, 5%), the matter has to
receive immediate action of management on a priority basis.
(2+1=3)
24 Following are the objectives of SEBI : ( any three)
1. To regulate stock exchanges and the securities industry to promote
their orderly functioning
2. To protect the rights and interests of investors, particularly individual
investors and to guide and educate them.
3. To prevent trading malpractices and achieve a balance between self-
regulation by the securities industry and its statutory regulation.
4. To regulate and develop a code of conduct and fair practices by
intermediaries like brokers, merchant bankers etc., with a view to
making them competitive and professional.
OR
Following are the functions of stock exchange: (any three)
(i) Providing liquidity and marketability to existing securities.
(ii) Pricing of securities on the stock exchange is determined by the forces of
demand and supply.
(iii) Safety of transaction is ensured as membership of a stock exchange is well
regulated and its dealings are well defined.
(iv) Contributes to economic growth through the process of disinvestment and
reinvestment.
(v) Spreading of equity cult by ensuring wider ownership by way of regulating
new issues.
(vi) Providing scope for speculation by ensuring speculative activity within the
(1x3)
1 mark for each
correct
statement.
(1x3)
1 mark for each
correct
statement.
Page 4
MARKING SCHEME
BUSINESS STUDIES
2022-23
Answers
Marks
1
b) Departmentalization
1
2
a) Uncertainty
1
3
d) Heads do not get training for top management positions.
1
4
a) Technological and Social
1
5
b) Management creates a dynamic organization
1
6 a) Internet connectivity is a prerequisite 1
7
c) It helps in tapping useful resources
1
8
b) Social
1
9
c) It is both forward looking and backward looking
1
10
c) Controlling
1
11
a) Organization structure
1
12 d) Both the statements are false
1
13
(a) (ii), (iii), (i)
1
14
b) Unique order code
1
15
d) physical distribution
1
16
( C )Securities Exchange Board of India performs the regulatory function of
controlling insider trading and imposing penalties for such practices.
1
17
d ).Societal Marketing concept
1
18 (a) Utility and demand of the product 1
19
a) It is a personal form of communication
1
20
d). (ii);(iii),(iv);(i)
1
21
Coordination
The process by which a manager synchronizes the activities of different
departments is known as coordination.
Coordination is the force that binds all the other functions of management. It
is the common thread that runs through all activities. It is implicit and inherent
in all functions of an organization.
1
(1X2)
22
Merits of external sources: (Any three)
1. Qualified personnel: By using external sources of recruitment, the
management can attract qualified and trained people to apply for
vacant jobs in the organization.
2. Wider choice: When vacancies are advertised wisely, a large number of
applicants from outside the organization can apply. The management
has a wider choice while selecting the people for employment.
3. Fresh Talent: The present employees may be insufficient or they may
not fulfill the specifications of the jobs to be filled. External
recruitment provides wider choice and brings new blood in the
organization.
4. Competitive spirit: If a company taps external sources, the existing
sources, the existing staff will have to compete with the outsiders.
They will work harder to show better performance.
(1X3=3)
½ mark for the
heading and ½
for the
explanation
23
Critical point control: It is neither economical nor easy to keep a check on each
and every activity in an organization.
Control should therefore focus on key result areas which are critical to the
success of an organization.
(2+1 = 3)
These KRAs are set as the critical points. If anything goes wrong at the critical
points, the entire organization suffers.
For instance, in a manufacturing organization, an increase of 5% in the labour
cost may be more troublesome than a 15% increase in postal charges.
OR
Management by Exception: Management by exception, which is often referred
to as control by exception, is an important principle of management control
based on the belief that an attempt to control everything results in controlling
nothing.
Thus, only significant deviations which go beyond the permissible limit should
be brought to the notice of the management.
For instance, if the plans lay down 2% increase in labour cost as an acceptable
range of deviation in a manufacturing organization, only an increase in labour
cost beyond 2% should be brought to the notice of the management. However,
in case of major deviation from the standard (say, 5%), the matter has to
receive immediate action of management on a priority basis.
(2+1=3)
24 Following are the objectives of SEBI : ( any three)
1. To regulate stock exchanges and the securities industry to promote
their orderly functioning
2. To protect the rights and interests of investors, particularly individual
investors and to guide and educate them.
3. To prevent trading malpractices and achieve a balance between self-
regulation by the securities industry and its statutory regulation.
4. To regulate and develop a code of conduct and fair practices by
intermediaries like brokers, merchant bankers etc., with a view to
making them competitive and professional.
OR
Following are the functions of stock exchange: (any three)
(i) Providing liquidity and marketability to existing securities.
(ii) Pricing of securities on the stock exchange is determined by the forces of
demand and supply.
(iii) Safety of transaction is ensured as membership of a stock exchange is well
regulated and its dealings are well defined.
(iv) Contributes to economic growth through the process of disinvestment and
reinvestment.
(v) Spreading of equity cult by ensuring wider ownership by way of regulating
new issues.
(vi) Providing scope for speculation by ensuring speculative activity within the
(1x3)
1 mark for each
correct
statement.
(1x3)
1 mark for each
correct
statement.
provisions of law for it to take place in a restricted and controlled manner.
25
The benefits of training to an organization are as follows:(any four)
(i) Training is a systematic learning,
Always better than hit and trial methods which lead to wastage of efforts and
money?
(ii) It enhances employee productivity both in terms of quantity and quality,
leading to higher profits.
(iii) Training equips the future manager who can take over in case of
emergency.
(iv)Training increases employee morale and reduces absenteeism and
employee turnover.
(v) It helps in obtaining an effective response to a fast changing environment –
technological and economic.
OR
Selection test
Types of tests are: ( any three)
a. Intelligence test is one of the important psychological tests used to
measure the level of intelligence quotient of an individual and is an
indicator of a person’s ability or the ability to make decisions and
judgments.
b. Aptitude test is a measure of an individual's potential for learning new
skills and indicates the person’s capacity to develop.
c. Personality tests provide clues to a person’s emotions, her reactions,
maturity, and value system and probe the overall personality.
d. Trade tests measure the existing skills of the individual, level of
knowledge and proficiency in the area of professions or technical
training.
e. Interest tests are used to know the pattern of interests or involvement
of a person.
(1X4=4)
1
(1X3=3)
26
Semantic barriers (Any four):
1. Sometimes intended meaning may not be conveyed by a manager to
his subordinates due to badly expressed messages which may be on
account of inadequate vocabulary, usage of wrong works, omission of
needed works, etc.
2. A word may have different meanings and the receiver has to perceive
one such meaning for the word used by the communicator.
3. If the translator is not proficient with both the languages, mistakes
may creep in causing different meanings to communication.
4. Some communications may have certain assumptions which are
subject to different interpretations.
5. It is usually found that specialists use technical jargon while explaining
to persons who are not specialists in the concerned field and therefore
they may not understand the actual meaning of many words.
(1x4=4)
1 mark for each
correct
statement
Page 5
MARKING SCHEME
BUSINESS STUDIES
2022-23
Answers
Marks
1
b) Departmentalization
1
2
a) Uncertainty
1
3
d) Heads do not get training for top management positions.
1
4
a) Technological and Social
1
5
b) Management creates a dynamic organization
1
6 a) Internet connectivity is a prerequisite 1
7
c) It helps in tapping useful resources
1
8
b) Social
1
9
c) It is both forward looking and backward looking
1
10
c) Controlling
1
11
a) Organization structure
1
12 d) Both the statements are false
1
13
(a) (ii), (iii), (i)
1
14
b) Unique order code
1
15
d) physical distribution
1
16
( C )Securities Exchange Board of India performs the regulatory function of
controlling insider trading and imposing penalties for such practices.
1
17
d ).Societal Marketing concept
1
18 (a) Utility and demand of the product 1
19
a) It is a personal form of communication
1
20
d). (ii);(iii),(iv);(i)
1
21
Coordination
The process by which a manager synchronizes the activities of different
departments is known as coordination.
Coordination is the force that binds all the other functions of management. It
is the common thread that runs through all activities. It is implicit and inherent
in all functions of an organization.
1
(1X2)
22
Merits of external sources: (Any three)
1. Qualified personnel: By using external sources of recruitment, the
management can attract qualified and trained people to apply for
vacant jobs in the organization.
2. Wider choice: When vacancies are advertised wisely, a large number of
applicants from outside the organization can apply. The management
has a wider choice while selecting the people for employment.
3. Fresh Talent: The present employees may be insufficient or they may
not fulfill the specifications of the jobs to be filled. External
recruitment provides wider choice and brings new blood in the
organization.
4. Competitive spirit: If a company taps external sources, the existing
sources, the existing staff will have to compete with the outsiders.
They will work harder to show better performance.
(1X3=3)
½ mark for the
heading and ½
for the
explanation
23
Critical point control: It is neither economical nor easy to keep a check on each
and every activity in an organization.
Control should therefore focus on key result areas which are critical to the
success of an organization.
(2+1 = 3)
These KRAs are set as the critical points. If anything goes wrong at the critical
points, the entire organization suffers.
For instance, in a manufacturing organization, an increase of 5% in the labour
cost may be more troublesome than a 15% increase in postal charges.
OR
Management by Exception: Management by exception, which is often referred
to as control by exception, is an important principle of management control
based on the belief that an attempt to control everything results in controlling
nothing.
Thus, only significant deviations which go beyond the permissible limit should
be brought to the notice of the management.
For instance, if the plans lay down 2% increase in labour cost as an acceptable
range of deviation in a manufacturing organization, only an increase in labour
cost beyond 2% should be brought to the notice of the management. However,
in case of major deviation from the standard (say, 5%), the matter has to
receive immediate action of management on a priority basis.
(2+1=3)
24 Following are the objectives of SEBI : ( any three)
1. To regulate stock exchanges and the securities industry to promote
their orderly functioning
2. To protect the rights and interests of investors, particularly individual
investors and to guide and educate them.
3. To prevent trading malpractices and achieve a balance between self-
regulation by the securities industry and its statutory regulation.
4. To regulate and develop a code of conduct and fair practices by
intermediaries like brokers, merchant bankers etc., with a view to
making them competitive and professional.
OR
Following are the functions of stock exchange: (any three)
(i) Providing liquidity and marketability to existing securities.
(ii) Pricing of securities on the stock exchange is determined by the forces of
demand and supply.
(iii) Safety of transaction is ensured as membership of a stock exchange is well
regulated and its dealings are well defined.
(iv) Contributes to economic growth through the process of disinvestment and
reinvestment.
(v) Spreading of equity cult by ensuring wider ownership by way of regulating
new issues.
(vi) Providing scope for speculation by ensuring speculative activity within the
(1x3)
1 mark for each
correct
statement.
(1x3)
1 mark for each
correct
statement.
provisions of law for it to take place in a restricted and controlled manner.
25
The benefits of training to an organization are as follows:(any four)
(i) Training is a systematic learning,
Always better than hit and trial methods which lead to wastage of efforts and
money?
(ii) It enhances employee productivity both in terms of quantity and quality,
leading to higher profits.
(iii) Training equips the future manager who can take over in case of
emergency.
(iv)Training increases employee morale and reduces absenteeism and
employee turnover.
(v) It helps in obtaining an effective response to a fast changing environment –
technological and economic.
OR
Selection test
Types of tests are: ( any three)
a. Intelligence test is one of the important psychological tests used to
measure the level of intelligence quotient of an individual and is an
indicator of a person’s ability or the ability to make decisions and
judgments.
b. Aptitude test is a measure of an individual's potential for learning new
skills and indicates the person’s capacity to develop.
c. Personality tests provide clues to a person’s emotions, her reactions,
maturity, and value system and probe the overall personality.
d. Trade tests measure the existing skills of the individual, level of
knowledge and proficiency in the area of professions or technical
training.
e. Interest tests are used to know the pattern of interests or involvement
of a person.
(1X4=4)
1
(1X3=3)
26
Semantic barriers (Any four):
1. Sometimes intended meaning may not be conveyed by a manager to
his subordinates due to badly expressed messages which may be on
account of inadequate vocabulary, usage of wrong works, omission of
needed works, etc.
2. A word may have different meanings and the receiver has to perceive
one such meaning for the word used by the communicator.
3. If the translator is not proficient with both the languages, mistakes
may creep in causing different meanings to communication.
4. Some communications may have certain assumptions which are
subject to different interpretations.
5. It is usually found that specialists use technical jargon while explaining
to persons who are not specialists in the concerned field and therefore
they may not understand the actual meaning of many words.
(1x4=4)
1 mark for each
correct
statement
6. If there is no match between what is said and what is expressed in
body movements, communications may be wrongly perceived.
OR
Organizational barriers (Any four):
1. If organizational policy either explicit or implicit is not supportive to
free flow of communication it may hamper effectiveness of
communications.
2. Rigid rules and regulations, cumbersome procedures may be a hurdle
to communication, as communications through prescribed channels
may result in delays.
3. Status of superior may create psychological distance between him and
his subordinates.
4. Complexity in the organization caused by the number of managerial
levels may delay and distort the communication as the number of
filtering points is more.
5. If facilities like frequent meetings, suggestion box, and complaint box,
social and cultural gathering, transparency in operations, etc, for
smooth, clear and timely communications are not provided,
communications may be hampered.
(1X4=4)
1 mark for each
correct
statement
27 Incentives being given by the organization to the employees are:
1. Job enrichment: Job enrichment is concerned with designing jobs that
include greater variety of work content, require higher level of
knowledge and skill; give workers more autonomy and responsibility;
and provide opportunity for personal growth and a meaningful work
experience.
2. Job security: Employees want their jobs to be secure. They want
certain stability about future income and work so that they do not feel
worried about these aspects and work with greater zeal.
3. Perquisites: In many companies perquisites and fringe benefits are
offered such as car allowance, housing, medical aid and education to
the children, etc., over and above the salary.
4. Co-partnership/stock option: Under these incentive schemes,
employees are offered company shares at a set price which is lower
than market price. Sometimes, management may allot shares in line of
various incentives payable in cash.
(1X4=4)
½ mark for the
heading and ½
mark for the
explanation
28 Following are the factors affecting capital structure of a company : (Any
four)
1. Size of the projected Cash flows must be considered before
borrowing.
2. Interest Coverage Ratio refers to the number of times earnings before
interest and taxes of a company covers the interest obligation.
3. Debt Service Coverage Ratio takes care of the deficiencies referred to
(1X4=4)
1 mark for each
correct
statement
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