Class 12 Business Studies: CBSE Marking Scheme (2023-24) | Sample Papers for Class 12 Commerce PDF Download

 Page 1


MARKING SCHEME 
BUSINESS STUDIES (054) 
Class XII (2023-24) 
  
 Answers: 
Marks 
1 
d) Favourable financial leverage as return on investment is higher than 
cost of debt 1 
2 d) Labelling 1 
3 
b) Social environment 
1 
4 
c) Customer support services  
1 
5 
a) Regulatory function  
1 
6 a) Management helps in achieving group goals 
 
1 
7 
b) Earning higher rate of return to household sector  
1 
8 c) Controlling 1 
Page 2


MARKING SCHEME 
BUSINESS STUDIES (054) 
Class XII (2023-24) 
  
 Answers: 
Marks 
1 
d) Favourable financial leverage as return on investment is higher than 
cost of debt 1 
2 d) Labelling 1 
3 
b) Social environment 
1 
4 
c) Customer support services  
1 
5 
a) Regulatory function  
1 
6 a) Management helps in achieving group goals 
 
1 
7 
b) Earning higher rate of return to household sector  
1 
8 c) Controlling 1 
9 c) If firm wants to attain product quality leadership, it should charge 
lower prices  
1 
10 b) Both Assertion (A) and Reason (R) are true and Reason (R) is not 
the correct explanation of Assertion (A). 
1 
11 d) Centralisation  1 
12 
d) Measurement of actual performance 
1 
13 b) Statement II is true and I is false 1 
14 a) It enables the firm to identify opportunities and getting the first 
mover advantage.  
 
1 
15 
c) Organising  
1 
16 b) Statement II is true and I is false 
 
1 
17 d) Social and Technological Environment 1 
Page 3


MARKING SCHEME 
BUSINESS STUDIES (054) 
Class XII (2023-24) 
  
 Answers: 
Marks 
1 
d) Favourable financial leverage as return on investment is higher than 
cost of debt 1 
2 d) Labelling 1 
3 
b) Social environment 
1 
4 
c) Customer support services  
1 
5 
a) Regulatory function  
1 
6 a) Management helps in achieving group goals 
 
1 
7 
b) Earning higher rate of return to household sector  
1 
8 c) Controlling 1 
9 c) If firm wants to attain product quality leadership, it should charge 
lower prices  
1 
10 b) Both Assertion (A) and Reason (R) are true and Reason (R) is not 
the correct explanation of Assertion (A). 
1 
11 d) Centralisation  1 
12 
d) Measurement of actual performance 
1 
13 b) Statement II is true and I is false 1 
14 a) It enables the firm to identify opportunities and getting the first 
mover advantage.  
 
1 
15 
c) Organising  
1 
16 b) Statement II is true and I is false 
 
1 
17 d) Social and Technological Environment 1 
18 
a) A (3), B (1), C (4), D (2) 
1 
19 
c) Based on practice and creativity 
1 
20 
b) Reduce the prices of real estate 
1 
21 The importance of management highlighted: 
1. Helps in achieving personal objectives– A manager 
motivates and leads his team in such a manner that 
individual members are able to achieve personal goals 
while contributing to the overall organizational goals. 
2. Helps in the development of society- The organisation tries 
to behave as responsible constituent of society and always 
creates good quality products. 
3.Creates a dynamic organisation- Organisations have to 
function in a constantly changing environment. 
Management helps people adapt to the changes so that 
organisation is able to maintain a competitive edge. 
1/2mark each 
for 
identification 
and 1/2 mark 
each for 
stating 3 
identified 
points 
22 Importance of controlling: (Any Three) 
1. The controlling function measures progress towards the 
organisational goals and brings to light the deviations, if 
any, and indicates corrective action. 
2. A good control system enables management to verify 
whether the standards set are accurate and objective. 
3. By exercising control, a manager seeks to reduce wastage 
and spoilage of resources. Each activity is performed in 
accordance with predetermined standards and norms. 
4. A good control system ensures that employees know well in 
advance what they are expected to do and what are the 
standards of performance on the basis of which they are 
appraised. 
5. Controlling creates an atmosphere of order and discipline in 
the organisation. 
6. Controlling provides direction to all activities and efforts for 
achieving organizational goals. 
 
OR 
  
 
1 mark each 
for stating 
any 3 points 
 
 
 
 
 
Page 4


MARKING SCHEME 
BUSINESS STUDIES (054) 
Class XII (2023-24) 
  
 Answers: 
Marks 
1 
d) Favourable financial leverage as return on investment is higher than 
cost of debt 1 
2 d) Labelling 1 
3 
b) Social environment 
1 
4 
c) Customer support services  
1 
5 
a) Regulatory function  
1 
6 a) Management helps in achieving group goals 
 
1 
7 
b) Earning higher rate of return to household sector  
1 
8 c) Controlling 1 
9 c) If firm wants to attain product quality leadership, it should charge 
lower prices  
1 
10 b) Both Assertion (A) and Reason (R) are true and Reason (R) is not 
the correct explanation of Assertion (A). 
1 
11 d) Centralisation  1 
12 
d) Measurement of actual performance 
1 
13 b) Statement II is true and I is false 1 
14 a) It enables the firm to identify opportunities and getting the first 
mover advantage.  
 
1 
15 
c) Organising  
1 
16 b) Statement II is true and I is false 
 
1 
17 d) Social and Technological Environment 1 
18 
a) A (3), B (1), C (4), D (2) 
1 
19 
c) Based on practice and creativity 
1 
20 
b) Reduce the prices of real estate 
1 
21 The importance of management highlighted: 
1. Helps in achieving personal objectives– A manager 
motivates and leads his team in such a manner that 
individual members are able to achieve personal goals 
while contributing to the overall organizational goals. 
2. Helps in the development of society- The organisation tries 
to behave as responsible constituent of society and always 
creates good quality products. 
3.Creates a dynamic organisation- Organisations have to 
function in a constantly changing environment. 
Management helps people adapt to the changes so that 
organisation is able to maintain a competitive edge. 
1/2mark each 
for 
identification 
and 1/2 mark 
each for 
stating 3 
identified 
points 
22 Importance of controlling: (Any Three) 
1. The controlling function measures progress towards the 
organisational goals and brings to light the deviations, if 
any, and indicates corrective action. 
2. A good control system enables management to verify 
whether the standards set are accurate and objective. 
3. By exercising control, a manager seeks to reduce wastage 
and spoilage of resources. Each activity is performed in 
accordance with predetermined standards and norms. 
4. A good control system ensures that employees know well in 
advance what they are expected to do and what are the 
standards of performance on the basis of which they are 
appraised. 
5. Controlling creates an atmosphere of order and discipline in 
the organisation. 
6. Controlling provides direction to all activities and efforts for 
achieving organizational goals. 
 
OR 
  
 
1 mark each 
for stating 
any 3 points 
 
 
 
 
 
 
ADVANTAGES OF MANAGEMENT BY EXCEPTION: 
1) It saves the time and efforts of managers as they deal with only 
significant deviations 
2) It focuses managerial attention on important areas. There is 
better utilization of managerial talent. 
3) The routine problems are left to the subordinates. Thus, it 
facilitates delegation of authority and increases morale of 
employees. 
4) It identifies critical problems which need timely action to keep 
the organisation in right direction. 
 
 
1 mark each 
for stating 
any 3 points 
23 
 
 
 
 
 
 
 
 
 
 
 
The step of staffing process which has not been performed 
properly is: 
(i)Estimation of manpower requirements: Operationally, understanding 
the manpower requirements would necessitate workload analysis on 
the one hand and workforce analysis on the other. 
(ii)The next stage immediately following the step Estimation of 
manpower requirement is as follows: 
Recruitment: Recruitment may be defined as the process of searching 
for prospective employees and stimulating them to apply for jobs in the 
organisation. 
 
1 mark for 
identification 
and I mark 
for 
explanation 
   + 
1 mark for 
explaining 
next step 
 
Page 5


MARKING SCHEME 
BUSINESS STUDIES (054) 
Class XII (2023-24) 
  
 Answers: 
Marks 
1 
d) Favourable financial leverage as return on investment is higher than 
cost of debt 1 
2 d) Labelling 1 
3 
b) Social environment 
1 
4 
c) Customer support services  
1 
5 
a) Regulatory function  
1 
6 a) Management helps in achieving group goals 
 
1 
7 
b) Earning higher rate of return to household sector  
1 
8 c) Controlling 1 
9 c) If firm wants to attain product quality leadership, it should charge 
lower prices  
1 
10 b) Both Assertion (A) and Reason (R) are true and Reason (R) is not 
the correct explanation of Assertion (A). 
1 
11 d) Centralisation  1 
12 
d) Measurement of actual performance 
1 
13 b) Statement II is true and I is false 1 
14 a) It enables the firm to identify opportunities and getting the first 
mover advantage.  
 
1 
15 
c) Organising  
1 
16 b) Statement II is true and I is false 
 
1 
17 d) Social and Technological Environment 1 
18 
a) A (3), B (1), C (4), D (2) 
1 
19 
c) Based on practice and creativity 
1 
20 
b) Reduce the prices of real estate 
1 
21 The importance of management highlighted: 
1. Helps in achieving personal objectives– A manager 
motivates and leads his team in such a manner that 
individual members are able to achieve personal goals 
while contributing to the overall organizational goals. 
2. Helps in the development of society- The organisation tries 
to behave as responsible constituent of society and always 
creates good quality products. 
3.Creates a dynamic organisation- Organisations have to 
function in a constantly changing environment. 
Management helps people adapt to the changes so that 
organisation is able to maintain a competitive edge. 
1/2mark each 
for 
identification 
and 1/2 mark 
each for 
stating 3 
identified 
points 
22 Importance of controlling: (Any Three) 
1. The controlling function measures progress towards the 
organisational goals and brings to light the deviations, if 
any, and indicates corrective action. 
2. A good control system enables management to verify 
whether the standards set are accurate and objective. 
3. By exercising control, a manager seeks to reduce wastage 
and spoilage of resources. Each activity is performed in 
accordance with predetermined standards and norms. 
4. A good control system ensures that employees know well in 
advance what they are expected to do and what are the 
standards of performance on the basis of which they are 
appraised. 
5. Controlling creates an atmosphere of order and discipline in 
the organisation. 
6. Controlling provides direction to all activities and efforts for 
achieving organizational goals. 
 
OR 
  
 
1 mark each 
for stating 
any 3 points 
 
 
 
 
 
 
ADVANTAGES OF MANAGEMENT BY EXCEPTION: 
1) It saves the time and efforts of managers as they deal with only 
significant deviations 
2) It focuses managerial attention on important areas. There is 
better utilization of managerial talent. 
3) The routine problems are left to the subordinates. Thus, it 
facilitates delegation of authority and increases morale of 
employees. 
4) It identifies critical problems which need timely action to keep 
the organisation in right direction. 
 
 
1 mark each 
for stating 
any 3 points 
23 
 
 
 
 
 
 
 
 
 
 
 
The step of staffing process which has not been performed 
properly is: 
(i)Estimation of manpower requirements: Operationally, understanding 
the manpower requirements would necessitate workload analysis on 
the one hand and workforce analysis on the other. 
(ii)The next stage immediately following the step Estimation of 
manpower requirement is as follows: 
Recruitment: Recruitment may be defined as the process of searching 
for prospective employees and stimulating them to apply for jobs in the 
organisation. 
 
1 mark for 
identification 
and I mark 
for 
explanation 
   + 
1 mark for 
explaining 
next step 
 
24 Functions of Stock Exchange 
1. Stock exchange provides liquidity and marketability to existing 
securities by creating a continuous market where securities are 
bought and sold. It gives them the chance to invest and 
disinvest 
2.  A stock exchange is a mechanism of constant valuation 
through which the prices of securities are determined by the 
market forces of demand and supply. 
3. The membership of a stock exchange is well regulated and 
well defined according to the existing legal framework, thereby 
ensuring a safe and fair deal to investors in the market. 
4. Through the process of disinvestment and reinvestment 
savings get channelised into the most productive investment 
avenues leading to capital formation and economic growth. 
5.  Stock exchange ensures wider share ownership by regulating 
new issues, better trading practices and taking effective steps 
in educating the public about investment. 
6. Stock exchange provides sufficient scope for speculative 
activity in restricted and controlled manner. 
                   OR 
The first 3 steps in screen-based trading in securities 
1. Investor has to first approach a registered broker and enter                 
into agreement. He has to open a broker- client agreement and 
a client registration form before placing the order. He has to 
provide few details like PAN number, date of birth and address, 
educational qualification and occupation, Residential 
status,Bank account details, Depository account details,name 
of any other broker with whom registered, client code number 
in the client registration form. The broker opens a trading 
account in the name of investor. 
2. The investor has to open a demat account or beneficial owner 
account with a depository participant for holding and 
transferring securities in the demat form. 
3. The investor places an order with the broker to buy or sell 
shares. Clear instructions have to be given about the number 
of shares and price at which shares can be bought or sold. The 
broker will go ahead with the deal to mention the best price 
available. Order confirmation slip is issued to the investor by 
the broker. 
                     
      
 1 mark each 
for stating 
any 3 points 
 
 
 
 
 
 
 
 
OR 
 
 
1 mark each 
for stating 
each step