Class 12 Business Studies Official Sample Question Paper Solution (2022-23) | Business Studies (BST) Class 12 - Commerce PDF Download

 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