CBSE Past Year Question Paper - 2014 (Delhi Compartment (All SET), Business Study, Class 12 Commerce Notes | EduRev

Business Studies (BST) Class 12

Commerce : CBSE Past Year Question Paper - 2014 (Delhi Compartment (All SET), Business Study, Class 12 Commerce Notes | EduRev

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CBSE PAst Year Question Paper - 2014 (Delhi  Compartment)

Q1. What is meant by ‘efficiency’ in management?

(1)

Ans. Efficiency means doing the task correctly and with minimum cost.

(or any other correct meaning)

 

Q2. How does co-ordination integrates group efforts? State.

(1)

Ans. Co-ordination integrates group efforts by unifying diverse interests thereby giving them a common focus to ensure that the performance is according to the plans.

 

Q3. Give the meaning of 'Method' as a type of plan.

(1)

Ans. Method is the prescribed way or manner in which a task has to be performed.

 

Q4. To make the annual function of the school successful the principal of the schooldivided all the activities into task groups each dealing with a specific area likerehearsals, decoration, stage management, refreshments etc. Each group was placed under the overall supervision of a senior teacher. Identify the function of managementperformed by the Principal in doing so.

(1)

Ans. Organising

 

Q5. Besides the investment decision the finance function is concerned with two otherbroad decisions. Name these decisions.

(1)

Ans. Two other broad decisions are:
(i)Financing decision
(ii) Dividend decision

 

Q6. A textile company is diversifying and starting a steel manufacturing plant. State with reason the effect of diversification on the fixed capital requirements of the company.

(1)

Ans. With diversification, the fixed capital requirements will increase as the investment in fixed capital will increase.

 

Q7. A TV manufacturing company is spending substantial amount of money to persuadethe target customers to buy its T.V. sets through advertisements, personal selling andsales promotion techniques. Identify the element of marketing mix referred here.

(1)

 

Ans. Promotion/ promotion mix.

 

Q8. On the eve of Diwali Ravi purchased two kilograms of sweets from Nandan Sweets.On consumption of sweets his wife fell sick and was to be hospitalized. Ravi wantedto file a case in the consumer forum but could not do so because he did not have anyproof of buying the sweets from Nandan sweets. Name the document that Ravi couldhad obtained for filing the complaint in the consumer forum.

(1)

Ans. Cash memo.

 

Q9. State any three advantages of formal organization.

(3)

Ans. Advantages of Formal organisation: (any three)
(a) It is easier to fix responsibility since mutual relationships are clearly defined.
(b) It avoids duplication of effort since there is no ambiguity in the role that each member has to play.
(c) It maintains unity of command through an established chain of command
(d) It leads to accomplishment of goals by providing a framework for the operations to be performed.
(e) It provides stability to the organisation because there are specific rules to guide behaviour of employees.

(If an examinee has given only the heading, ½ mark for the heading should be awarded)

 

Q10. There are some characteristics that should be kept in mind while choosing a brandname. Explain any two such characteristics that a good brand name should have.

(3)

Ans. Characteristics that should be kept in mind while choosing a
good brand name:( Any two)
(i) Short and easy to pronounce,
(ii) Suggestive
(iii) Distinctive.
(iv)Adaptable to packaging and labelling requirements.
(v) Versatile
(vi) Capable of being registered and protected legally.
(vii) Staying power.
(if an examinee has not given the headings as above but has given the correct explanation, full credit should be given)

 

Q11. Name and define the process that helps in finding possible candidates for a job or a function

(3)

Ans. Recruitment.

Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.

 

Q12. 'Efficient functioning of stock exchange creates a conducive climate for active andgrowing primary market for new issues as well as for an active and healthy secondarymarket.' In the light of
this statement state any three functions of a stock exchange.

(3)

Ans.Functions of Stock Exchange are: (Any three)
(a) It provides liquidity and marketability to existing securities.
(b) It determines the price of securities by forces of demand and supply.
(c) It ensures safety of transactions as the transactions carried out within an existing legal framework.
(d) It contributes to economic growth as it indirectly promotes capital formation.
(e) It spreads equity cult and ensuring wider share ownership.
(f) It provides scope for speculation within the provisions of law.
 

(If an examinee has given only the heading, ½ mark for the each heading should be awarded)

 

Q13. Neha was a regional sales manager in 'Good Look Garments Ltd' for ten years. On the retirement of the marketing manager Neha applied for the same post as she was extremely ambitious and had dedicated all her energies to obtain the post of marketing manager. However, the top management of the company decided to fill this post by selecting a better person from outside the company. Because of this Neha was heart-broken and her performance declined.
When the new marketing manager joined, one of her major problems was how to motivate and inspire Neha to her former level of performance?
Suggest any three non-financial incentives that the new marketing manager may use to motivate Neha.

(3)

Ans. The non-financial incentives that the new marketing manager may use to motivate Neha are: (Any three)

(i) Job enrichment which is concerned with designing jobs that include a greater variety of work content, require higher level of knowledge and skill, give more autonomy and opportunity for personal growth.
(ii) Employee recognitionwhich means acknowledgement with a show of appreciation.
(iii) Employee participationwhich means involving employees in decision making of issues related to them.
(iv) Employee empowermentwhich means giving more autonomy and powers to subordinates.
(v) Job securitywhich refers to providing stability to the employees about future income and work so that they do not feel worried on these aspects and work with greater zeal.
(If an examinee has given only the heading, ½ mark for the each heading should be awarded)

 

Q14. Explain how does the understanding of business environment
help the management inthe following:
(a) tapping useful resources ; and
(b) coping with rapid changes.

(4)

Ans.
(a) Understanding of business environment helps in tapping useful resources by designing the policies that allow it to get the resources it needs so that it can convert those resources into outputs that the environment desires.
(b) Understanding of business environment helps in coping with rapid changes by developing suitable courses of action to deal with changes taking place in the environment as well as the pace of change.

 

Q15. An environmental conscious multinational company "AXN Ltd." follows certain welldefined business principles that result to minimize the employee turnover. Followingare some of the important environmental factors followed by 'AXN Ltd.'
(1) Honour the law of every country in which it operates.
(2) Respect the culture and customs of all nations.
(3) Provide clean and safe products to enhance the quality of life throughout theworld.
(4) Develop a culture in the company that enhances individual creativity and teamwork while honouring mutual trust and respect between management andlabour. From the above:
(i) Identify and state any one general principle of management and any onedimension of business environment.
(ii) Also identify any two values which the above guiding principles andenvironmental factors are conveying to the society.

(4)

Ans.(i) Principle of management:(Any one)
(a) Stability of personnel
(b) Esprit de corps
(c) Initiative

Dimension of business environment:(Any one)
(a)Legal environment.
(b)Social environment.

(ii) Values being conveyed: (Any two)
(a) Respect for law
(b) Cleanliness and hygiene
(c) Raising standard of living
(d) Secularism
(Or any other correct value)

 

 

Q16 . It is deciding in advance what to do and how to do.It is one of the basic managerialfunctions. It requires that before doing something, the manager must formulate anidea of how to work on a particular task. This function is closely connected withcreativity and innovation. It seeks to bridge the gap between where we are and wherewe want to go and is performed at all levels of management.
Inspite of this the function of management referred above has a number oflimitations. Explain any two such limitations.

(4)

Ans.Limitations of planning are:(Any two)
(i) Planning leads to rigidity.
(ii) Planning may not work in a dynamic environment.
(iii) Planning reduces creativity.
(iv) Planning involves huge costs.
(v) Planning is a time consuming process.
(vi) Planning does not guarantee success.

(if an examinee has not given the headings as above but has given the correct explanation, full credit should be given)

 

Q17. Mr. Naresh recently completed his M.B.A. from one of the Indian Institutes ofManagement in Human Resource Management. He has been appointed as HumanResource Manager in a Truck Manufacturing Company. The company has 1,500employees and has an expansion plan in hand that may require additional 500 personsfor various types of jobs. Mr. Naresh has been given the complete charge of thecompany's Human Resource Department.
List out the specialized activities that Mr. Naresh is supposed to perform as theHuman Resource Manager of the company.

(4)

Ans.

Specialized activities that Mr Naresh is supposed to perform as a human resource manager are:(Any eight)
(i) Analysing jobs.
(ii) Recruitment
(iii) Selection.
(iv) Placement and orientation.
(v) Training and development of employees.

(vi) Performance Appraisal.
(vii) Developing compensation and incentive plans.
(viii) Maintaining labour relations and union management relations.
(ix) Handling grievances and complaints.
(x) Providing for social security and welfare of employees.
(xi) Defending the company in law suits and avoiding legal complications.

 

Q18. State any four factors which affects the requirements of working capital requirements of a company.

(4)

Ans. Factors which affect the requirements of working capital are (Any four)
 

(a) Nature of business as trading organisation requires smaller amounts of working capital than manufacturing organisations as there is no processing. Service industries require less working capital as they do not have to maintain inventory.

(b) Scale of operations as firms operating on a higher scale require more working capital as their quantum of inventory and debtors is generally high.

(c) Business cycle as in case of boom, larger working capital is required as the sales and production are more.

(d) Seasonal factors as peak season requires higher working capital than lean season due to higher level of activity.

(e) Production Cycle as working capital requirement is higher in firms with longer processing cycle.

(f) Credit allowed to customers results in higher amount of debtors, increasing the working capital requirement.

(g) Credit availed from suppliers reduces the working capital requirement.

(h) Operating efficiency as firms managing their raw materials efficiently require lesser working capital.

(i) Free and continuous availability of raw materialsenables the firms to keep lesser stock and hence work with smaller working capital.

(j) Higher Growth prospects will require larger amounts of working capital so that the firm is able to meet higher production and sales targets

(k) Level of competition as higher competition requires larger stocks to meet urgent orders from customers and thus higher working capital.
(l) Inflation increases the working capital requirements as larger amount of money is required to maintain a constant volume of production and sales.
 

(If an examinee has given only the heading, ½ mark for each heading should be awarded)

 

Q19. Your company has setup a food processing unit in Kashmir with a production capacity of 10,000 litres of apple juice per day. The company plans to market the apple juice in tetra pack of 100 mililitres. Design a label for the same.

(4)

Ans. The following information is to be PROVIDED ON THE LABEL IN ANY FORM(Any four):

______________________

Name of the product/ Appice
Name of the manufacturer/ Fine Juice Ltd.
Address of the manufacturer/ 54, Chandni Chowk
Net weight when packed/ 200 ml
Manufacturing date/ 20th July 2015
Expiry date/ 20th December 2015
Maximum retail price (MRP)/ 30
Batch number/ D 4567
Directions for use/ To be consumed within 3 days of
opening.
Contents/ Juice concentrate, sugar, preservatives.

_______________________

 

(Full credit to be given if the examinee has written any specifications with reference to apple juice)

 

Q20. A company has been registered under the Companies Act with an authorized share capital of Rs20,000 crores. Its registered office is situated in Delhi and manufacturing unit in a backward
district of Rajasthan. Its marketing department is situated in Bhopal. The company is manufacturing Fast Moving Consumer Goods (FMCG).
(i) Suggest with the help of a diagram a suitable organization structure for the company.
(ii) State any three advantages of this organization structure.

(5)

Ans. Divisional structure:

BST,CBSE Past Year Question paper,Business Study Class 12,CBSE Class 12,CBSE Board Exam Prepapration,Marking Scheme,Business Study

Advantages of Divisional structure: (any three)
(i) Product specialization helps in development of varied skills.
(ii) Helps in fixation of responsibility.
(iii) Promotes flexibility as each division is autonomous.
(iv) Facilitates expansion and growth.

(If an examinee has not given the headings as above but has given the correct explanation, no marks should be deducted)

 

Q21. Explain any five points of importance of directing function of management.

(5)

Ans.Importance of directing:
(a)Initiates action.
(b)Integrates employees’ efforts.
(c)Guides employees to realize their potential.
(d)Facilitates changes.
(e)Brings stability and balance in the organisation.

(if an examinee has not given the headings as above but has given the correct explanation, full credit should be given)

 

Q22. 'I-phone India Ltd.' is a manufacturer of advanced category of mobile phones. The company trained its engineers from Japan. It markets its mobile phones domesticallyas well as internationally.
The company had a substantial market share and had aloyal customer following because of quality of its i-phone. From the last financialyear the company had been unable to achieve its targets because of competition in themarket. The company is planning to revamp its controlling system,

 

(i) Identify the concepts of management involved in the above para.
 

(ii) State the steps of the revamped controlling process to be followed by thecompany to solve this problem.
 

 (iii) Also, state any one value which the company wants to communicate to thesociety.

(5)

Ans. (i)Staffing and Controlling.

(ii) The twosteps which must be followed by the company to solve this problem are:
(a) Analysing deviations.
(b) Taking corrective action

(iii)Value which the company wants to communicate to the society:(Any one)
(a) Serving the society by providing quality products.
(b) Growth and development.

 

Q23. Aman, Ahmad and Ally are partners in a firmengaged in the distribution of dairy products in Maharashtra state. Aman is a holder of Senior Secondary SchoolCertificate from Central Board of Secondary Education with Business Studies as oneof his elective subjects. Ahmad had done his post graduation in History and Ally in dairy farming. One day there was a serious discussion between Ahmad and Allyregarding the nature of management, Ahmad argued that management was aprofession. Whereas Ally argued against it saying that the legal and medicalprofession are the only
professions because they fulfill1 all the conditions ofprofession. Aman on the basis of his knowledge of business studies explained the nature ofmanagement as a profession to Ahmad and Ally.
Explain, how Aman would have satisfied both Ahmad and Ally

(6)

Ans. Aman would have satisfied both Ahmed and Ally by explaining the following featuresof management as a profession.

(i) Well-defined body of knowledge:
All professions are based on a well-defined body of knowledge that can be acquired through instruction.
Management too is based on a systematic body of knowledge comprising well-defined principles. This feature of profession is present in management.
 

(ii) Restricted entry.
The entry to the above stated profession is restricted through a prescribed qualification. But there is no restriction on anyone being appointed as a manager in any business enterprise. So, presently this feature of profession is not present in management

(iii) Professional association.
Legal and medical professions are affiliated to a professional association like bar council and medical council which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. There are several associations ofpractising managers in India, like the AIMA that has laid down a code of conduct to regulate the activities of their members. There is, however, no compulsion for managers to be members of such an association.So, presently this feature of profession is not present in management

(iv) Ethical code of conduct.
Legal and medical professions are bound by a code of conduct which guides the behaviour of its members. AIMA has devised a code of conduct for Indian managers but there is no statutory backing for this code. So, presently this feature of profession is not present in management.

(v) Service motive.
The motive of legal and medical profession is to serve their client’s interests by rendering dedicated and committed service. The basic purpose of management to help the organisation achieve its goals by providing good quality products at reasonable prices, thereby serving the society is being increasingly recognised. So, presently this feature of profession is not fully present in management.
The above discussion shows that management does not satisfy all the criteria of a profession.
Through the above discussion Amanwould have been able to satisfy both Ahmed and Ally by making them understand that Management is a profession but not a full fledged or a true profession.

 

Q24. There are a number of factors which affect the fixation of the price of a product. Explain any four such factors.

(6)

Ans. Factors that affect the fixation of price of a product are: (Any four)
(a) Product cost
(b) Utility and demand
(c) Extent of competition in the market,
(d) Government and legal regulations.
(e) Pricing objectives.
(f) Marketing methods used.
 

(If an examinee has not given the headings as above but has given the correct explanation, no marks should be deducted)

 

Q25. Distinguish between money market and capital market on the basis of:
(a) Participants
(b) Instruments
(c) Safety and
(d) Expected return

(6)

Ans.Difference between Capital Market and Money Market:

BST,CBSE Past Year Question paper,Business Study Class 12,CBSE Class 12,CBSE Board Exam Prepapration,Marking Scheme,Business Study

BST,CBSE Past Year Question paper,Business Study Class 12,CBSE Class 12,CBSE Board Exam Prepapration,Marking Scheme,Business Study

 

 

Uncommon Question for SET -2

Q2. How does co-ordination ensure unity of action? State.

(1)

Ans. Co-ordination ensures unity of action by acting as a
binding force between departments so that all action is aimed at
achieving organisational goals. 

 

Q5. Besides financing decision the finance function is
concerned with two otherbroad decisions. Name these
decisions.

(1)

Ans. Two other broad decisions are:
(i) Investment decision
(ii) Dividend decision

Q9. State any three advantages of informal organisation.

(3)

Ans.Advantages of informal organisation:
1. It leads to faster spread of information as well a quick
feedback.
2. It fulfills the social needs of the members.
3. It contributes towards fulfillment of organisational objectives
by compensating for inadequacies in the formal organisation.
(If an examinee has given only the heading, ½ mark for each
heading should be awarded)

 

Q10. ‘Sometimes advertising confuses the buyers.’ Do you
agree with this? Give reasons in support of your answer.
Also state the arguments of supporters of advertisement
regarding the above statement.

(3)

Ans.
Yes, I agree as-
So many products are being advertised which make similar
claims that the buyer gets confused as to which one is true and
should be relied upon.
OR
No, I do not agree as we all are human beings who make our
decisions for purchase of product based on various factors.
The arguments of supporters of advertisement are:
§ Advertising gives a chance to know about the products and
allows the buyers to choose from the options available.
§ It allows the buyers to take rational decisions on various
factors such as price, style, size etc.

 

Q11. Name and define the process in which candidates are
eliminated at every stage and a few move on to the next stage
till the right type of candidate is found.

(3)

Ans. Selection.
Selection is the process of choosing from among the pool of
prospective job candidates developed at the stage of recruitment.

 

Q24. The choice of an appropriate channel of distribution
depends upon a number of factors. Explain any four such
factors.

(6)

Ans. Factors which affect the choice of channel of distribution
are: (any four)
(a) Product related factors.
(b) Company characteristics.
(c) Competitive factors.
(d) Market factors.
(e) Environmental factors.
(If an examinee has not given the headings but have given
the correct explanation, full credit should be given)

 

Q25. Distinguish between Money market and capital market on the basis of:
(a) Investment outlay;
(b) Duration
(c) Liquidity and
(d) Instruments
Ans.Difference between Capital Market and Money Market:

BST,CBSE Past Year Question paper,Business Study Class 12,CBSE Class 12,CBSE Board Exam Prepapration,Marking Scheme,Business Study

 

 

Uncommon Questions for SET -3

Q9. State any three limitations of informal
organisation.

(3)

Ans. Limitations of informal organisation:
(i) It leads to spread of rumours.
(ii) It may lead to resistance to change.

(iii) It pressurizes members to conform to group
expectations which may be against organisational
interest.
(If an examinee has given only the heading, ½
mark for each heading should be awarded)

Q18. State any four factors except diversification
which affect the fixed capital requirements of a
company.

(4)

Ans. Factors affecting the requirements of fixed
capital: (Any four)
(i) Nature of business as a trading concern needs a
lower investment in fixed assets as compared to a
manufacturing concern since it doesn’t require to
purchase plant and machinery.
(ii) Scale of operations as a larger organisation
operating at a higher scale needs bigger plant and
more space and hence higher investment in fixed
assets.
(iii) Choice of technique as a capital intensive
organisation requires higher investment in plant and
machinery and thus requires higher fixed capital than
a labour intensive organisation.
(iv)Technology upgradationas industries where assets
become obsolete sooner require higher fixed capital to
purchase such assets.
(v) Higher growth prospects require higher investment
in fixed assets to meet anticipated demand quicker
(vi) Availability of financing alternatives like leasing
requires lower investment in fixed assets and hence
requires less fixed capital.
(vii) Collaboration reduces the level of investment in
fixed assets.
(If an examinee has given only the heading, ½
mark for each heading should be awarded)

 

Q21. ‘The organizations which are keen on
developing effective communication, shouldadopt
suitable measures to overcome the barriers to
communication and improvecommunication
effectiveness.' Suggest and explain any such five
measures.

(5)

Ans.Measures to overcome communication barriers:
(Any five)
(i) Clarify the ideas before communicating.
(ii) Communicate according to the needs of the
receiver.
(iii) Consult others before communicating.
(iv) Be aware of the language, tone and content of the
message.
(v) Convey things of help and value to listeners.
(vi) Ensure proper feedback
(vii) Communicate for present as well as future.
(viii) Follow up communications
(ix) Be a good listener.
(If an examinee has given only the heading, ½
mark for each heading should be awarded)

 

Q24. Describe the role of public relations in sales
promotion.

(6)

Ans. Role of Public Relations in sales promotion: (Any four)

(i) Press Relations.
(ii) Product Publicity.
(iii) Corporate Communication.
(iv) Lobbying.
(v) Counselling.
(vi) Smooth functioning of business.
(vi) Image building.
(vii) Launching new products.
(viii) Helps in facing adverse publicity.
(ix) Supplement to advertising.
(x) Satisfying interest of different public groups.
(If an examinee has not given the headings but has
given the correct explanation, full credit should be
given)
 

Q25. Explain the functions of financial market.

(6)

Ans. Functions of Financial market:
(i) Mobilisation of savings and channelising them into
most productive use.
(ii) Facilitating price determination/ discovery.
(iii) Providing liquidity to financial assets.
(iv) Reducing the cost of transactions.
(If an examinee has not given the headings as
above but has given the correct explanation, full
credit be given)

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