CBSE Business Studies Past year paper Delhi (Set - 2) Solution - 2017, Class 12 Commerce Notes | EduRev

Business Studies (BST) Class 12

Created by: Nipuns Institute

Commerce : CBSE Business Studies Past year paper Delhi (Set - 2) Solution - 2017, Class 12 Commerce Notes | EduRev

 Page 1


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
Answer 1 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions.  
Answer 2 
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 3 
Usable benefit is used by the company to promote sales.  
 
Answer 4 
Private placement method is used by the company to raise additional capital. 
Answer 5 
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 6 
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 7 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
 
Answer 8 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 9 
i. Discipline: According to the principle of discipline, employees in the organisation 
must follow the rules the regulations as defined in the organisation. It also implies 
developing commitment in the employees towards organisation as well as towards 
each other. This principle states that the discipline is required at superior as well as 
Page 2


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
Answer 1 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions.  
Answer 2 
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 3 
Usable benefit is used by the company to promote sales.  
 
Answer 4 
Private placement method is used by the company to raise additional capital. 
Answer 5 
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 6 
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 7 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
 
Answer 8 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 9 
i. Discipline: According to the principle of discipline, employees in the organisation 
must follow the rules the regulations as defined in the organisation. It also implies 
developing commitment in the employees towards organisation as well as towards 
each other. This principle states that the discipline is required at superior as well as 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
subordinate level. For example, the employees must honour their commitments 
towards the organisation by working efficiently and effectively. On the other hand 
superior must also meet their commitments by meeting their promises such as 
increment, pension and wage. 
ii. Scalar chain: A scalar chain refers to a pre-defined, formal path of authority and 
communication in the order of highest to the lowest. For example, A is the project 
manager in an organisation and he further has a project lead (B) and a team 
member (C) under him. So, the chain of communication would be A-B-C. Suppose 
there is another hierarchical order wherein he has a team manager (D) and a team 
member (E), i.e. the chain of communication is A-D-E. Now, if C wants to 
communicate with E, then he would follow the communication path 
C B A D E ? ? ? ?
. That is, C would first contact the higher authorities
? ? C B A ??
who would then send the message to E
? ? A D E ??
. 
Answer 10 
Following are some of the limitations of planning which may result in the abandoning or 
reconsidering the organisational objectives: 
i. Rigidness: In case of any unforeseen conditions, the changes which can be made to 
a plan are limited. A major change to the already created plan is neither possible nor 
would do any good in the interest of an organisation. This rigid nature of a plan 
creates hurdles at times of unforeseen changes. The managers may, sometimes, 
require certain degree of flexibility so as to cope with the changes in an appropriate 
manner. Rigidity in plans sometimes causes huge loses to the organisation creates 
obstacles in the completion of the objectives.  
ii. Unfavourable for a dynamic environment: Nothing is constant in a business 
environment; it is dynamic in nature. Planning, on the other hand, completely 
depends on the anticipation of future happenings. As a result, both do not go hand-
in-hand. Planning cannot foresee such sudden changes in the business and fails  of 
uncertainties. This may lead to failure in the accomplishment of objectives. An 
organisation must adapt its functioning to the changing environment; a long term 
planning will make this dynamic environment less effective.  
iii. Gigantic costs: Planning involves analysis, research and scientific calculations 
which requires huge cost and time. As planning is based on future predictions, it 
requires a lot of thinking and analysing. It involves scientific calculations along with 
the figures and the facts, which are to be used in formulating the course of action. 
Companies, thus, need to hire professionals who would formulate plans. This 
involves high costs. Moreover, sometimes it might also happen that the benefits 
derived from planning fall short of the costs incurred.  
iv. False security: A good planning does not guarantee success. The probability of 
attaining success once the plans have been put into action is odd. Often the 
managers tend to rely on previously tried and tested successful plans. However, 
Page 3


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
Answer 1 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions.  
Answer 2 
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 3 
Usable benefit is used by the company to promote sales.  
 
Answer 4 
Private placement method is used by the company to raise additional capital. 
Answer 5 
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 6 
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 7 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
 
Answer 8 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 9 
i. Discipline: According to the principle of discipline, employees in the organisation 
must follow the rules the regulations as defined in the organisation. It also implies 
developing commitment in the employees towards organisation as well as towards 
each other. This principle states that the discipline is required at superior as well as 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
subordinate level. For example, the employees must honour their commitments 
towards the organisation by working efficiently and effectively. On the other hand 
superior must also meet their commitments by meeting their promises such as 
increment, pension and wage. 
ii. Scalar chain: A scalar chain refers to a pre-defined, formal path of authority and 
communication in the order of highest to the lowest. For example, A is the project 
manager in an organisation and he further has a project lead (B) and a team 
member (C) under him. So, the chain of communication would be A-B-C. Suppose 
there is another hierarchical order wherein he has a team manager (D) and a team 
member (E), i.e. the chain of communication is A-D-E. Now, if C wants to 
communicate with E, then he would follow the communication path 
C B A D E ? ? ? ?
. That is, C would first contact the higher authorities
? ? C B A ??
who would then send the message to E
? ? A D E ??
. 
Answer 10 
Following are some of the limitations of planning which may result in the abandoning or 
reconsidering the organisational objectives: 
i. Rigidness: In case of any unforeseen conditions, the changes which can be made to 
a plan are limited. A major change to the already created plan is neither possible nor 
would do any good in the interest of an organisation. This rigid nature of a plan 
creates hurdles at times of unforeseen changes. The managers may, sometimes, 
require certain degree of flexibility so as to cope with the changes in an appropriate 
manner. Rigidity in plans sometimes causes huge loses to the organisation creates 
obstacles in the completion of the objectives.  
ii. Unfavourable for a dynamic environment: Nothing is constant in a business 
environment; it is dynamic in nature. Planning, on the other hand, completely 
depends on the anticipation of future happenings. As a result, both do not go hand-
in-hand. Planning cannot foresee such sudden changes in the business and fails  of 
uncertainties. This may lead to failure in the accomplishment of objectives. An 
organisation must adapt its functioning to the changing environment; a long term 
planning will make this dynamic environment less effective.  
iii. Gigantic costs: Planning involves analysis, research and scientific calculations 
which requires huge cost and time. As planning is based on future predictions, it 
requires a lot of thinking and analysing. It involves scientific calculations along with 
the figures and the facts, which are to be used in formulating the course of action. 
Companies, thus, need to hire professionals who would formulate plans. This 
involves high costs. Moreover, sometimes it might also happen that the benefits 
derived from planning fall short of the costs incurred.  
iv. False security: A good planning does not guarantee success. The probability of 
attaining success once the plans have been put into action is odd. Often the 
managers tend to rely on previously tried and tested successful plans. However, 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
business environment is dynamic in nature and a pretested plan may or may not 
work in the future. Managers tend to over think that planning can prevent problems 
from occurring. However, they neglect the fact that planning just provides a base for 
predicting the future and does not give straight away solutions to the problems. 
v. Time consuming: Formulating a plan involves analysis, research and scientific 
calculations which consumes too much of time. It is a boon while facing a definite 
situation. However, sudden unforeseen situation cannot be tackled; there is no 
short-term planning procedure.  The time taken to formulate a complete plan may 
cause delay in the decision-making process. 
Answer 11 
1. To initiate action. The employees in the organisation start working only when they get 
instruction and direction from their superiors. In the directing function the superiors 
direct the action of employees towards the predetermined goals of the origination. If 
the directing function is executed successful then it results in unit of direction and 
achievement of organization goals. 
2. To integrate employees’ efforts. In the organization numbers of employees are 
working at different levels and in different job position. The employees may differ in 
their levels of authority and the type of job assigned. But all are interrelated to each 
other as they are the part of one organastion. When the employees are working at 
different levels then their efforts are integrated and they co-ordinate only with the help 
of directing function as while issuing instruction the continuity of the work can be 
maintained. 
3. Means of motivation. Directing function does not mean giving orders only but through 
direction and instruction the superiors try to motivate the employees to perform to 
their best ability. Motivation is a very important element of directing. Directing function 
develops the feeling of belongingness and encourages employees to perform to their 
best ability. 
Answer 12 
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. 
Page 4


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
Answer 1 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions.  
Answer 2 
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 3 
Usable benefit is used by the company to promote sales.  
 
Answer 4 
Private placement method is used by the company to raise additional capital. 
Answer 5 
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 6 
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 7 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
 
Answer 8 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 9 
i. Discipline: According to the principle of discipline, employees in the organisation 
must follow the rules the regulations as defined in the organisation. It also implies 
developing commitment in the employees towards organisation as well as towards 
each other. This principle states that the discipline is required at superior as well as 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
subordinate level. For example, the employees must honour their commitments 
towards the organisation by working efficiently and effectively. On the other hand 
superior must also meet their commitments by meeting their promises such as 
increment, pension and wage. 
ii. Scalar chain: A scalar chain refers to a pre-defined, formal path of authority and 
communication in the order of highest to the lowest. For example, A is the project 
manager in an organisation and he further has a project lead (B) and a team 
member (C) under him. So, the chain of communication would be A-B-C. Suppose 
there is another hierarchical order wherein he has a team manager (D) and a team 
member (E), i.e. the chain of communication is A-D-E. Now, if C wants to 
communicate with E, then he would follow the communication path 
C B A D E ? ? ? ?
. That is, C would first contact the higher authorities
? ? C B A ??
who would then send the message to E
? ? A D E ??
. 
Answer 10 
Following are some of the limitations of planning which may result in the abandoning or 
reconsidering the organisational objectives: 
i. Rigidness: In case of any unforeseen conditions, the changes which can be made to 
a plan are limited. A major change to the already created plan is neither possible nor 
would do any good in the interest of an organisation. This rigid nature of a plan 
creates hurdles at times of unforeseen changes. The managers may, sometimes, 
require certain degree of flexibility so as to cope with the changes in an appropriate 
manner. Rigidity in plans sometimes causes huge loses to the organisation creates 
obstacles in the completion of the objectives.  
ii. Unfavourable for a dynamic environment: Nothing is constant in a business 
environment; it is dynamic in nature. Planning, on the other hand, completely 
depends on the anticipation of future happenings. As a result, both do not go hand-
in-hand. Planning cannot foresee such sudden changes in the business and fails  of 
uncertainties. This may lead to failure in the accomplishment of objectives. An 
organisation must adapt its functioning to the changing environment; a long term 
planning will make this dynamic environment less effective.  
iii. Gigantic costs: Planning involves analysis, research and scientific calculations 
which requires huge cost and time. As planning is based on future predictions, it 
requires a lot of thinking and analysing. It involves scientific calculations along with 
the figures and the facts, which are to be used in formulating the course of action. 
Companies, thus, need to hire professionals who would formulate plans. This 
involves high costs. Moreover, sometimes it might also happen that the benefits 
derived from planning fall short of the costs incurred.  
iv. False security: A good planning does not guarantee success. The probability of 
attaining success once the plans have been put into action is odd. Often the 
managers tend to rely on previously tried and tested successful plans. However, 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
business environment is dynamic in nature and a pretested plan may or may not 
work in the future. Managers tend to over think that planning can prevent problems 
from occurring. However, they neglect the fact that planning just provides a base for 
predicting the future and does not give straight away solutions to the problems. 
v. Time consuming: Formulating a plan involves analysis, research and scientific 
calculations which consumes too much of time. It is a boon while facing a definite 
situation. However, sudden unforeseen situation cannot be tackled; there is no 
short-term planning procedure.  The time taken to formulate a complete plan may 
cause delay in the decision-making process. 
Answer 11 
1. To initiate action. The employees in the organisation start working only when they get 
instruction and direction from their superiors. In the directing function the superiors 
direct the action of employees towards the predetermined goals of the origination. If 
the directing function is executed successful then it results in unit of direction and 
achievement of organization goals. 
2. To integrate employees’ efforts. In the organization numbers of employees are 
working at different levels and in different job position. The employees may differ in 
their levels of authority and the type of job assigned. But all are interrelated to each 
other as they are the part of one organastion. When the employees are working at 
different levels then their efforts are integrated and they co-ordinate only with the help 
of directing function as while issuing instruction the continuity of the work can be 
maintained. 
3. Means of motivation. Directing function does not mean giving orders only but through 
direction and instruction the superiors try to motivate the employees to perform to 
their best ability. Motivation is a very important element of directing. Directing function 
develops the feeling of belongingness and encourages employees to perform to their 
best ability. 
Answer 12 
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. 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
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 13 
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 14 
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 
Page 5


  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
CBSE 
Class XII Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
Answer 1 
Financial management means efficiently acquiring and using funds. It is concerned with the 
investment, financing and dividend decisions.  
Answer 2 
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 3 
Usable benefit is used by the company to promote sales.  
 
Answer 4 
Private placement method is used by the company to raise additional capital. 
Answer 5 
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 6 
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 7 
Workload analysis is used by the Human Resource Manager to find out actual number of 
persons required in each department. 
 
Answer 8 
Measurement of actual performance is the step which is taken by Harsh that is related to 
controlling function of management. 
Answer 9 
i. Discipline: According to the principle of discipline, employees in the organisation 
must follow the rules the regulations as defined in the organisation. It also implies 
developing commitment in the employees towards organisation as well as towards 
each other. This principle states that the discipline is required at superior as well as 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
subordinate level. For example, the employees must honour their commitments 
towards the organisation by working efficiently and effectively. On the other hand 
superior must also meet their commitments by meeting their promises such as 
increment, pension and wage. 
ii. Scalar chain: A scalar chain refers to a pre-defined, formal path of authority and 
communication in the order of highest to the lowest. For example, A is the project 
manager in an organisation and he further has a project lead (B) and a team 
member (C) under him. So, the chain of communication would be A-B-C. Suppose 
there is another hierarchical order wherein he has a team manager (D) and a team 
member (E), i.e. the chain of communication is A-D-E. Now, if C wants to 
communicate with E, then he would follow the communication path 
C B A D E ? ? ? ?
. That is, C would first contact the higher authorities
? ? C B A ??
who would then send the message to E
? ? A D E ??
. 
Answer 10 
Following are some of the limitations of planning which may result in the abandoning or 
reconsidering the organisational objectives: 
i. Rigidness: In case of any unforeseen conditions, the changes which can be made to 
a plan are limited. A major change to the already created plan is neither possible nor 
would do any good in the interest of an organisation. This rigid nature of a plan 
creates hurdles at times of unforeseen changes. The managers may, sometimes, 
require certain degree of flexibility so as to cope with the changes in an appropriate 
manner. Rigidity in plans sometimes causes huge loses to the organisation creates 
obstacles in the completion of the objectives.  
ii. Unfavourable for a dynamic environment: Nothing is constant in a business 
environment; it is dynamic in nature. Planning, on the other hand, completely 
depends on the anticipation of future happenings. As a result, both do not go hand-
in-hand. Planning cannot foresee such sudden changes in the business and fails  of 
uncertainties. This may lead to failure in the accomplishment of objectives. An 
organisation must adapt its functioning to the changing environment; a long term 
planning will make this dynamic environment less effective.  
iii. Gigantic costs: Planning involves analysis, research and scientific calculations 
which requires huge cost and time. As planning is based on future predictions, it 
requires a lot of thinking and analysing. It involves scientific calculations along with 
the figures and the facts, which are to be used in formulating the course of action. 
Companies, thus, need to hire professionals who would formulate plans. This 
involves high costs. Moreover, sometimes it might also happen that the benefits 
derived from planning fall short of the costs incurred.  
iv. False security: A good planning does not guarantee success. The probability of 
attaining success once the plans have been put into action is odd. Often the 
managers tend to rely on previously tried and tested successful plans. However, 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
business environment is dynamic in nature and a pretested plan may or may not 
work in the future. Managers tend to over think that planning can prevent problems 
from occurring. However, they neglect the fact that planning just provides a base for 
predicting the future and does not give straight away solutions to the problems. 
v. Time consuming: Formulating a plan involves analysis, research and scientific 
calculations which consumes too much of time. It is a boon while facing a definite 
situation. However, sudden unforeseen situation cannot be tackled; there is no 
short-term planning procedure.  The time taken to formulate a complete plan may 
cause delay in the decision-making process. 
Answer 11 
1. To initiate action. The employees in the organisation start working only when they get 
instruction and direction from their superiors. In the directing function the superiors 
direct the action of employees towards the predetermined goals of the origination. If 
the directing function is executed successful then it results in unit of direction and 
achievement of organization goals. 
2. To integrate employees’ efforts. In the organization numbers of employees are 
working at different levels and in different job position. The employees may differ in 
their levels of authority and the type of job assigned. But all are interrelated to each 
other as they are the part of one organastion. When the employees are working at 
different levels then their efforts are integrated and they co-ordinate only with the help 
of directing function as while issuing instruction the continuity of the work can be 
maintained. 
3. Means of motivation. Directing function does not mean giving orders only but through 
direction and instruction the superiors try to motivate the employees to perform to 
their best ability. Motivation is a very important element of directing. Directing function 
develops the feeling of belongingness and encourages employees to perform to their 
best ability. 
Answer 12 
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. 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
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 13 
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 14 
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 
  
 
CBSE XII  | Business Studies 
Delhi Board Paper Set 2 – 2017 Solution 
 
     
and efficient utilisation of resources, reducing inventories and increasing the 
turnover 
 
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 
i. Procedures: Procedures are the required steps to establish in advance to handle 
future conditions. In this case, the sequence of steps to be adopted by employees in 
different situations must be predetermined. This enables each individual to follow the 
same steps. In other words, the exact manner in which an activity needs to be 
performed.  
For example: Steps to be followed in the admission process:  
a. First, setup a file for applicants to record details. 
b. Accept the filed norms and place them in a file. 
c. Request students for other required certificates to verify marks. 
d. These documents also placed in the proper file. 
Finally, hand over the file to the admission in-charge. 
 
ii. Rules 
Rules refer to standard or specific statements which inform us about what is to be done. It 
is quite similar to plans because both of them facilitate the achievement of objectives. Rules 
state what need not be done and what needs to be done, whereas planning points out what 
to do and how to do. They can be viewed as the simplest of plans. However, rules are rigid 
in nature, i.e. do not allow flexibility or discretion and are to be followed as is, unless a 
change is stated by the organisation. Non-compliance of rules leads to disciplinary actions 
by the organisation. For example, an organisation may have rules regarding the punch-in 
timings of the employees and every employee of the organisation must follow this rule. 
Rules act as a guide for general behaviour of the employees in the organisation.  
 
Answer 17 
(a) The leadership style followed by Umang Gupta is Democratic or Participative 
leadership. 
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