CBSE 2014 Question Paper for Class 12 Business Studies - Foreign

7/27/2019 CBSE 2014 Question Paper for Class 12 Business Studies - Foreign

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66/2/1 1 P.T.O.

narjmWu H moS >H mo Cma-nwpVH m Ho _wI-n>na Ad` {bIo &Candidates must write the Code on the

title page of the answer-book.

Series OSR/2 H moS> Z. 66/2/1Code No.

amob Z.Roll No.

`mdgm{`H A``ZBUSINESS STUDIES

{ZYm[aV g_` : 3KQ>o A{YH V_ AH : 90

Time allowed : 3 hours Maximum Marks : 90

H n`m OmM H a b| {H Bg Z-n _o _w{V n> 11h & Z-n _| Xm{hZo hmW H s Amoa {XE JE H moS >Z~a H mo N>m Cma-nwpVH m Ho _wI-n> na

{bI|& H n`m OmM H a b| {H Bg Z-n _| >30Z h &

H n`m Z H m Cma {bIZm ew H aZo gonhbo, Z H m H _mH Ad` {bI| & Bg Z-n H monT>Zo Ho {bE 15{_ZQ >H m g_` {X`m J`m h& Z-n H m {dVaU nydm

_| 10.15~Oo {H m OmEJm & 10.15~Oo go 10.30 ~Oo VH N>m Hodb Z-nH mo nT>|Jo AmaBg Ad{Y Ho XmamZ do Cma-nwpVH m na H moB Cma Zht {bI|Jo &

Please check that this question paper contains 11printed pages.

Code number given on the right hand side of the question paper should be

written on the title page of the answer-book by the candidate.

Please check that this question paper contains 30questions.

Please write down the Serial Number of the question beforeattempting it.

15 minutes time has been allotted to read this question paper. The question

paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the

students will read the question paper only and will not write any answer on

theanswer-book during this period.

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gm_m` {ZX}e:

(i) 1AH dmboZm| Ho Cma EH eXgo EH dm`VH hm| &

(ii) 3AH m| dmbo Zm| Ho Cma 50 75eXm| Ho hm| &

(iii) 4 5AH m| dmbo Zm| Ho Cma bJ^J 150eXm| Ho hm| &

(iv) 6AH m| dmbo Zm| Ho Cma bJ^J200eXm| Ho hm| &

(v) EH Z Ho g^r ^mJ gmW-gmW hr hb H s{OE &

General Instructions :

(i) Answers to questions carrying 1 mark may be from one word to one

sentence.

(ii) Answers to questions carrying3marks may be from 50 75words.

(iii) Answers to questions carrying4 5 marks may be about 150words.

(iv) Answers to questions carrying 6marks may be about200words.

(v) Attempt all parts of a question together.

1. n[aMmbZ H m ~Ygo `m A{^m` h ? 1What is meant by Management of Operations ?

2. WHmZ A``Zmam `m {ZYm[aV {H m OmVm h ? 1What is determined by Fatigue Study?

3. `dgm` Ho VH ZrH s dmVmdaU_| `m gp_{bV hmoVm h ?CboI H s{OE & 1

What is included in Technological Environmentof business ? State.

4. `moOZm Ho EH H ma Ho n _| {H mH m AW ~VmBE & 1Give the meaning of Procedureas a type of plan.

5. A{YH ma AVaU Ho EH Vd Ho n _| CmaXo`VmH m AW ~VmBE & 1Give the meaning of Accountabilityas an element of delegation.

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6. gJR>Z H mo EH T>mMo Ho n _| n[a^m{fV H s{OE & 1

Define organization as a structure.

7. O~ gJR>Z ^Vu Ho AmV[aH moVm|H m Cn`moJ H aVo h Vmo H _Mmar AH _` `m| hmo OmVo

h ?CboI H s{OE & 1Why do employees become lethargic when the organization uses internal

sources of recruitment ? State.

8. l_ g~Ym| VWm l_-gKm| d ~Y Ho g~Ym| H m aIaImd_mZd ggmYZ ~Y mam{Znm{XV H s OmZodmbr {d{e> {H mAm| _| go EH h & _mZd ggmYZ ~Y H s A` H moB

Xmo {d{e> {H mE ~VmBE &>1

Maintaining labour relations and union-management relations is one of

the specialised activities performed by Human Resource Management.

Mention any two other specialised activities of Human Resource

Management.

9. gJR>{ZH dmVmdaUH s Eogr Xmo {deofVmE ~VmBE Omo `{ m|/H _Mm[a`m| Ho `dhma H mo

^m{dV H aVr h VWm EH Ja-{dmr` mogmhZ Ho n _| H m H aVr h & 1

Give two characteristics of Organizational Climate that influence the

behaviour of individuals and act as a non-financial incentive.

10. {dmr` ~YH mo n[a^m{fV H s{OE & 1

Define Financial Management.

11. gofU H s AdYmaUm _| {VnwpQ>H m `m AW h? 1

What is meant by Feedback in the concept of communication ?

12. EH H nZr H s nyOr gaMZm H mo G U H s bmJV> {H g H ma ^m{dV H aVr h ? CoIH s{OE & 1

How does Cost of Debt affect the capital structure of a company ? State.

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13. H m`m EH H nZr _| Wm`r AmYma na H m aV h& H m g_PmVo Ho AZwgma Cgo {XZ _|

8KQ>o H m H aZm h VWm dh AnZr BN>mZwgma AmodaQ>mB_ H a gH Vr Wr & H m`m Zo

AmodaQ>mB_ H m {H m & bo{H Z b~r Ad{Y VH H m H aZo VWm AnZogdmom_ `mgm|Ho

~mdOyX CgHo A{YH mar (~mg) mam Cgo H moB nhMmZ Zht Xr JB & AmodaQ>mB_ H m_ H aZo

Ho H maU dh ~r_ma hmo JB & {H gr Zo ^r CgHo ~mao _| {MVm Zht H s Ama Z hr CgH sgohV Ho ~mao _| nyN>VmN> H s & CgH mo `h _hgyg hAm {H dh AnZr HwN> Amd`H VmAm|

H mo hr nyam H a nm ahr Wr O~{H CgH s HwN> A` Amd`H VmE A^r ^r AnyU ah JB

Wt &

(i) Cn w AZwN>oX go n{ m|H mo CV H aVo hE H m`m H s CZ Amd`H VmAm| H mo

nhMm{ZE Ed g_PmBE {OZH s MMmCn w AZwN>oX _| H s JB h &(ii) Cn w Amd`H VmAm| Ho ~mX AmZodmbr H m`m H s CZ Xmo Amd`H VmAm| H mo^r

g_PmBE Omo Cgo A^r ^r gVw> H aZr h & 3

Kavya is working in a company on permanent basis. As per the job

agreement she had to work for 8 hours a day and was free to work

overtime. Kavya worked overtime. But even after working for long hours

and putting in her best efforts, no recognition was given to her by her

boss. Due to overtime she fell ill and had to take leave from her work. No

oneshowed concern and enquired about her health. She realised that she

was fulfilling only some of her needs while some other needs still

remained to be fulfilled.

(i) Identify and explain the needs of Kavya discussed in the abovepara, by quoting the lines.

(ii) Also explain two other needs of Kavya followed by the above needs,

which still remained to be satisfied.

14. ^mdr gofU _| AmZo dmbr {H ht VrZ `{ JV ~mYmAm| H mo g_PmBE & 3

Explain any three personal barriers to effective communication.

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15. _wm ~mOma Ho {ZZ{b{IV nm| H mo g_PmBE : 3

(i) H mof n

(ii) dm{Up`H n

(iii) erKmd{Y `

Explain the following Money Market Instruments :

(i) Treasury bill

(ii) Commercial paper

(iii) Call money

16. nQ>mIo ~ZmZo dmbr EH H nZr HoH g {b{_Q>oS> Zo {Xdmbr Ho Adga na Hw N> ZE CnmX

~mOma _| VwV {H E, {Oggo ~hV go JmhH AmH {fV hE & ~T>r hB _mJ H mo nyam HaZo Ho{bEH nZr Zo Amg-nmg Ho Jmdm| go ~m| H mo H m_ na {Z w {H m & `{n BZ CnmXm|

H s ~mOma _| ~hV A{YH _mJ Wr {\ a ^r BZHo Cn`moJ H s C{MV gwajm MoVmdZrBZHo

bo~b na Zht {bIr JBWr, {OgHo H maU AZoH XKQ>ZmE KQ>t &

(i) CnmX g~Yr Cg _hdnyU {ZU` H mo nhMm{ZE Ed g_PmBE {Ogo H nZr mam

`mZ _| Zht aIm J`m &

(ii) gmW hr Eogo {H ht Xmo _y`m| H m CoI ^r H s{OE {OZH m CKZ H nZr mam

{H m J`m & 3

Crackers Ltd., a fire-cracker manufacturing company launched somenew

products on the eve of Diwali in the market, which attracted many

buyers. To meet the increased demand the company employed children

from nearby villages. Although the products were in great demand,appropriate safety warnings for use were not mentioned on the labels,

which led to many accidents.

(i) Identify and explain the important product related decision that

was not taken into consideration by the company.

(ii) Also state any two values which were violated by the company.

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17. `dgm` Ho pQ>H moU go Cn^mo m gajU Ho _hd Ho {H ht VrZ {~XAm| H m CboIH s{OE & 3State any three points of importance of consumer protection from the

point of view of business.

18.

Cn^mo m gajU A{Y{Z`_,1986

Ho AVJV VrZ-

Var` `dWm {H g H ma goCn^mo mAm| H s {eH m`Vm|H m {ZdmaU H aVr h ?g_PmBE & 3

How are consumer grievances redressed by the three-tier machinery

under Consumer Protection Act, 1986 ? Explain.

19. _oJm {b{_Q>oS> dmQ>a-hrQ>g H m {Z_mU H a ahr Wr & H nZr mam BgHo gMmbZ Ho W_ df_| A{OV Am` Hodb BgH s bmJVm| H mo hr nyam H aZo Ho {bE n`m Wr & Am` H mo ~T>mZoHo {bE H nZr Zo H _ Am` Ho H maUm|H m {dbofU {H m & {dbofU Ho nMmV H nZr Zo

{ZU` {b`m {H(i) l_ bmJV H mo H _ H aZo Ho {bE Bg {Z_mUr BH mB H mo Eogo {nN>S>o jo _|

WmZmV[aV H a {X`m OmE Ohm _OXar ~hV H _ Xa na CnbY hmo &(ii) gmoba dmQ>a-hrQ>g H m {Z_mU ew {H m OmE Ama Yrao-Yrao {~Obr dmbo

dmQ>a-hrQ>g Ho CnmXZ H mo H _ {H m OmE &

Bggo Z Hodb Omo{I_m| go gwajm _| ghm`Vm {_boJr, A{nVw A` Co`m| H s ny{V ^r hmoJr &

(A) Cn w d{UV ~Y Ho Co`m| H monhMm{ZE Ed g_PmBE &

(~) Eogo {H ht Xmo _y`m| H m CboI H s{OE Omo H nZr g_mO H mo go{fV H aZmMmhVr h & 4

Mega Ltd. was manufacturing water-heaters. In the first year of its

operations, the revenue earned by the company was just sufficient to

meet its costs. To increase the revenue, the company analysed the

reasons of less revenue. After analysis the company decided

(i) to reduce the labour cost by shifting the manufacturing unit to abackward area where labour was available at a very low rate.

(ii) to start manufacturing solar water-heaters and reduce theproduction of electric water-heaters slowly.

This will not only help in covering the risks, but also help in meeting other

objectives too.

(a) Identify and explain the objectives of management discussedabove.

(b) State any two values which the company wanted to communicateto the society.

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66/2/1 7 P.T.O.

20. H moB Mma {~X XoVo hE `dgm` Ed CmoJ na gaH mar Zr{V _| n[adVZ Ho ^md H mo g_PmBE & 4Giving any four points, explain the impact of government policy changes

on Business and Industry.

21. EH gJR>Z _| {ejU H _Mm[a`m| Ho {bE{H g H ma bm^Xm`H h ?H moB Mma H maU XoVohE CoI H s{OE & 4How is training in an organization beneficial for employees ? State by

giving any four reasons.

22. {dmr` ~Y Ho {d{Z`moJEd bm^me{ZU`m| H m AW Xr{OE & 4Give the meaning of Investment and Dividend decisions of financial

management.

23. {Z`moOZ Ho_hd Ho {H ht nmM {~XAm| H m CboI H s{OE & 5State any five points of importance of planning.

24. nyOr~mOmaAma _wm ~mOma_| {ZZ{b{IV AmYmam| na AV }X H s{OE : 5

(i) gwajm

(ii) Ano{jV {V\ b

(iii) {Zdoe am{e

(iv) {V^mJr

(v) Ad{Y

Differentiate between Capital Marketand Money Marketon the basis

of the following :

(i) Safety

(ii) Expected Return

(iii) Investment outlay

(iv) Participants

(v) Duration

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66/2/1 8

25. ^m{VH {dVaUH m `m AW h ?BgHo _w` KQ>H m| H mo g_PmBE & 5

What is meant by Physical Distribution? Explain its major components.

26. Q>oba Ed \o mob Ho {gmV nana nyaH h & EH H m _V h {H ~Y mam oH `{

H m MwZmd dkm{ZH T>J go {H m OmZm Mm{hE Ama Cgo CgH s emar[aH Ed ~m{H

`mo`VmAm| Ho AZw n H m gmnm OmZm Mm{hE, O~{H Xgao H m gwPmd h {H H m H m

{ZnmXZ V^r g\ bVmnydH hmo gH Vm h O~ Cgo {d{eQ> H m`mo _| {d^m{OV H a {X`m

OmE &

Cn w AZwN>oX _| Cpb{IV \o mob Ed Q>oba Ho {gmVm| H mo nhMm{ZE Ed g_PmBE & 5

Principles of Taylor and Fayol are mutually complementary. One

believed that the management should scientifically select the personandthe work assigned should suit his/her physical and intellectual

capabilities, while the other suggested that the work can be performed

more efficiently if divided into specialised tasks.

Identify and explain the principles of Fayol and Taylor referred to in the

above para.

27. EH C_ _| gJR>Z H m H s {ZUm`H y{_H m H mo {H ht Mma {~XAm| H s ghm`Vm gog_PmBE & 6

AWdm

gJR>Z Ho H m`m_H Ed ^mJr`T>mMo _| {ZZ{b{IV AmYmam| na AV }X H s{OE :

(i) AW

(ii) aMZm

(iii) {d{eQ>rH aU

(iv) CmaXm{`d

(v) ~YH s` {dH mg

(vi) g{{hV bmJV

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10/25

66/2/1 9 P.T.O.

With the help of any four points, explain the crucial role of Organising

function in an enterprise.

OR

Differentiate between Functional and Divisional structure of

organising on the basis of the following :

(i) Meaning

(ii) Formation

(iii) Specialisation

(iv) Responsibility

(v) Managerial development

(vi) Cost involved

28. {Z`U Ho _hd na H me S>mbZo dmbo {H ht Mma {~XAm| H mo g_PmBE & 6AWdm

{Z`moOZ Ed {Z`U Ho _` Amngr g~Y H mo g_PmBE &

Explain any four points which highlight the importance of controlling.

OR

Explain the relationship between planning and controlling.

29. H m erb nyOr H s Amd`H VmAm| H mo ^m{dV H aZo dmbo H maH m| Ho n _| {ZZ{b{IVH mo g_PmBE : 6

(i) `dgm` MH

(ii) CYma XoZm d boZm

(iii) gMmbZ H m HwebVm

(iv) H o_mb H s CnbpY

AWdm

nyOr gaMZm Ho M`Z H mo ^m{dV H aZo dmbo H maH m| Ho n _| {ZZ{b{IV H mo g_PmBE :

(i) {d{Z`moJ na `m`

(ii) bMrbmnZ

(iii) Omo{I_ H m `mZ

(iv) {Z U

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11/25

66/2/1 10

Explain the following as factors affecting the requirements of working

capital :

(i) Business cycle

(ii) Credit allowed and availed

(iii) Operating efficiency

(iv) Availability of raw material

OR

Explain the following as factors affecting the choice of capital structure :

(i) Return on Investment

(ii) Flexibility

(iii) Risk consideration

(iv) Control

30. {dnUZ Ho {ZZ{b{IV H m`m] H mog_PmBE : 6

(i) {dnUZ {Z`moOZ

(ii) CnmX H m nmH Z ({S>OmBZ) Ed {dH mg

(iii) CnmX H m _y`-{ZYmaU

(iv)

_mnrH aU Ed loUrH aU H aZm

AWdm

`{n {dkmnZ dVwAm| Ed godmAm| Ho dVZ Ho {bE ~ma-~ma Cn`moJ _| bmE OmZo dmbo

_m`_m| _| go EH h, VWm{n `h ~hV-gr AmbmoMZmAm|H mo Am_{V H aVm h& Eogr {H ht

Mma AmbmoMZmAm| H mog_PmBE &

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12/25

66/2/1 11 P.T.O.

Explain the following functions of marketing :

(i) Marketing Planning

(ii) Product designing and development

(iii) Pricing of products

(iv) Standardisation and Grading

OR

Though advertising is one of the most frequently used media of

promotion of goods and services, yet it attracts lot of objections. Explain

anyfour such objections.

2,000

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66/2/1 66/2/2 66/2/3

MARKING SCHEME2013-14

BUSINESS STUDIES

FOREIGN66/2/1

EXPECTED ANSWERS / VALUE POINTS

DISTRIBUTION

OF MARKS

1 7 9 Q. What is meant by Management of

Operations?

Ans. Management of Operations means managing a

production process which involves transforming

inputs into output for consumption.

1 mark

2 12 12 Q. What is determined by Fatigue Study?Ans. Fatigue Study determines the amount and

frequency of rest intervals in completing task.

1 mark

3 9 8 Q. What is included in Technological

Environment of Business? State.Ans. Technological Environment of business

includes forces relating to scientific improvementsand innovations which provide new ways of

producing goods and services and new methods and

techniques of operating a business.

1 mark

4 10 10 Q. Give the meaning of Procedure as a type of

plan.

Ans. Procedure means routine steps on how to

carry out activities detailing the exact manner in

which any work is to be performed.

1 mark

5 8 7 Q. Give the meaning of Accountability as an

element of delegation.

Ans. Accountability means answerability for thefinal outcome of the assigned task.

1 mark

6 11 11 Q. Define organization as a structure.Ans. Organization as a structure refers to the

framework within which managerial and operating

tasks are to be performed.

1 mark

7 4 6 Q. Why do employees become lethargic when

the organization uses internal sources of

recruitment? State.

Ans. Employees become lethargic when the

organisation uses internal sources of recruitment asthey are sure of time bound promotions.

1 mark

8 6 3 Q. Maintaining labour relations and union-

management relations is one of the specialized

activities performed by Human Resource

management. Mention any two other

specialized activities of Human Resource

Management.Ans. Other specialized activities of human resource

management are: (Any two)

(i) Analysing jobs.

(ii) Recruitment. x 2

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2

(iii) Selection.

(iv) Placement and orientation.

(v) Training and development of employees.

(vi) Performance Appraisal.

(vii) Developing compensation and incentive plans.

(viii) Handling grievances and complaints.(ix) Providing for social security and welfare of

employees.

(x) Defending the company in law suits and

avoiding legal complications.

=

1 mark

9 5 4 Q. Give two characteristics of Organizational

Climate that influence the behavior of

individuals and act as a non-financial incentive.

Characteristics of Organizational Climate that

influence the behaviour of individuals are : (Any

two)

(i) Individual autonomy.(ii) Reward orientation.

(iii) Consideration to employees.

(iv) Risk taking.

x 2

=

1 mark

10 1 2 Q. Define Financial Management.Ans. Financial Management refers to management

of flow of funds and involves decisions relating to

procurement of funds, investment of funds and

distribution of earnings to the owners.

or

Financial Management means planning, organising,

directing and controlling the financial activities of

an organisation.

1 mark

11 2 5 Q. What is meant by Feedback in the concept

of communication?

Ans. Feedback in the concept of communication

refers to all those actions of the receiver which

indicate that he has received and understood the

message of the sender.

1 mark

12 3 1 Q. How does Cost of Debt affect the capital

structure of a company? State.

Ans. A firm may choose to have more debt in thecapital structure if the cost of debt is low.

1 mark

13 18 15 Q. Kavya is working in a company on a

permanent basis. As per the job agreement she

had to work for 8 hours a day and was free to

work overtime. Kavya worked overtime. But

even after working for long hours and putting in

her best efforts, no recognition was given to her

by her boss. Due to overtime she fell ill and had

to take leave from work. No one showed

concern and enquired about her health. She

realized that she was fulfilling only some of herneeds while some other needs still remained to

mark foridentification

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15/25

3

be fulfilled.

(i) Identify and explain the needs of kavya

discussed in the above para, by quoting the lines.

(ii) Also explain two other needs of Kavya

followed by the above needs, which still

remained to be satisfied.

(i) Needs of Kavya discussed in the above para are:

Safety/ security needs

Kavya is working in a company on a permanent

basis.

(ii) The other needs followed by the above needs

that are still to be satisfied are:

(a) Affiliation/ Belongingness needs

These needs refer to the need for affection, sense of

belongingness, acceptance and friendship.

(b) Esteem needsThese needs refer to the need for self respect,

autonomy status, recognition and attention.

+

mark for

quoting the

line

= +

= 1 mark+

mark for

naming the

need

+

mark for

its

explanation

= 1 x 2

=2marks

= 1+23marks

14 - - Q. Explain any three personal barriers to

effective communication.Ans. Personal barriers to effective communication

are: (Any three)

(a) Fear of challenge to authority

(b) Lack of confidence of superior on his

subordinates.

(c) Unwillingness to communicate.

(d) Lack of proper incentives.

(If an examinee has not given the headings as

above but has given the correct explanation, no

marks should be deducted)

mark

for the

heading

+

mark for

explan-

ation

= 1 x 3

= 3 marks

15 16 - Q. Explain the following Money Market

Instruments:

(i) Treasury Bill

(ii) Commercial Paper

(iii) Call Money

Ans. (i) Treasury billIt is an instrument issued by Reserve Bank of India

on behalf of the Central government to meet its

short term requirements of funds.

(ii) Commercial Paper

It is an instrument issued by large and creditworthy

companies to raise short term funds at lower rates

of interest than the market rates.

(iii) Call Money

It is the method by which banks borrow from each

other to be able to maintain the cash reserve ratio.

1+1+1

=

3 marks

16 13 13 Q. Crackers Ltd., a fire-cracker manufacturingcompany launched some new products on the

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eve of Diwali in the market, which attracted

many buyers. To meet the increased demand

the company employed children from nearby

villages. Although products were in great

demand, appropriate safety warnings for use

were not mentioned on the labels, which led tomany accidents.

(i) Identify and explain the important product

related decision that was not taken into

consideration by the company.

(ii) Also identify any two values which were

violated by the company.

Ans. (i) The important product related decision that

was not taken into consideration by the company is

Labelling.

It is the process of designing the label and putting it

on the package to provide information regardingthe product, its contents, methods of use etc.

(ii) Values violated by the company:

-concern for safety of human beings.

-respect for law (employing children as labour).

-concern/ sensitivity for the environment.

(or any other correct value)

mark foridentification

+

mark for

its

explanation

= +

= 1 mark

+

1 mark for each

value

= 1 x 2=2 marks

=1+2

=

3 marks

17 - 18 Q. State any three points of importance of

consumer protection from the point of view of

business.

Ans. Importance of consumer protection from the

point of view of business: (Any three)

(i) It is in the long term interest of the business.

(ii) Business uses societys resources and hence

should supply products and render services in

public interest.

(iii) Business has a social responsibility towards

various interest groups.

(iv) It is the moral duty of the business to take care

of consumers interests.

(v) Business would invite government interventionif it engages in any form of exploitative trade

practices.

(If an examinee has given only the headings,

mark for each heading should be awarded)

1 x 3

=

3marks

18 14 14 Q. How are consumer grievances redressed by

the three-tier machinery under Consumer

Protection Act, 1986? Explain.

Ans. Redressal of consumer grievances under

Consumer Protection Act 1986 is done under the

three tier machinery comprising of:(a) District Forum

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A complaint can be made to the appropriate

District Forum when the value of goods or

services in question along with the compensation

claimed does not exceed `20 lakhs.

The appeal against the orders of the DistrictForum can also be filed before the State

Commission.

(b) State Commission

A complaint can be made to the appropriate State

Commission when the value of goods or services

in question along with the compensation claimed

exceeds `20 lakhs but does not exceed `1 crore.

The appeal against the orders of the State

Commission can also be filed before the National

Commission.

(c) National Commission

A complaint can be made to the appropriateNational Commission when the value of goods or

services in question along with the compensation

claimed exceeds `1 crore.

An order passed by the National Commission in a

matter of its original jurisdiction is appealable

before the Supreme Court.

1+1+1

=3 marks

19 21 20 Q. Mega Ltd. was manufacturing water-

heaters. In the first year of its operations, the

revenue earned by the company was just

sufficient to meet its costs. To increase the

revenue, the company analysed the reasons of

less revenue. After analysis the company

decided

(i) to reduce labour cost by shifting the

manufacturing unit to a backward area where

labour was available at a very low rate.

(ii) to start manufacturing solar water-heaters

and reduce the production of electric water-heaters slowly.

This will not only help in covering the risks, but

also help in meeting other objectives too.

(a) Identify and explain the objectives of

management discussed above.

(b) State any two values which the company

wanted to communicate to the society.

(i) The objectives of management referred to are:

(a) Organisational objectives

These refer to the utilisation of human and materialresources considering the interest of all

mark for

identification

of each

objective

+

mark

for itsexplanation

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stakeholders.

(b) Social objectives

These refer to the creation of benefit for various

constituents of the society.

(If an examinee has explained survival andgrowth as objectives of management instead of

organisational objectives, full credit is to be

given)

(ii) Values which the company wanted to

communicate to the society are:

(a) Providing employment opportunities.

(b) Development of backward regions.

(c) Concern for the environment.

(or any other correct value)

=

1 x 2

=

2 marks

+

1 mark foreach value

=

1 x 2

=

2 marks

=

2+2

=

4 marks

20 - 21 Q. Giving any four points, explain the impact of

government policy changes on Business and

Industry.

Ans. Impact of government policy changes on

business and industry: (Any four):

(i) Increasing competition

(ii) More demanding customers

(iii) Rapidly changing technological environment

(iv) Necessity for change

(v) Need for developing human resources.

(vi) Market orientation

(vii) Loss of budgetary support to the public sector.

(if an examinee has not given the headings as

above but has given the correct explanation, full

credit should be given)

mark for

the heading

+

mark for

the

explanation

= 1 x 4

=4marks

21 22 22 Q. How is training in an organization beneficial

for employees? State by giving any four

reasons.

Reasons why training is beneficial for the

employees (Any four):

(i) It helps in promotion and career growth.(ii) It helps him to earn more.

(iii) It reduces accidents.

(iv) It increases the morale of the employees

(v) It provides better employment opportunities.



1 x 4

=

4 marks

22 20 19 Q. Give the meaning of Investment and

Dividend decisions of financial management.

Ans. Investment decision refers to how the firms

funds are invested in different assets to earn the

highest possible return for the investors.It can be long term or short term.

2 + 2

=

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Dividend decision means deciding whether to

distribute profits as dividend to shareholders or to

retain profits and reinvest into the business

4 marks

23 - - Q. State any five points of importance of planning.

Ans. Importance of planning: (Any five)

(a) Planning provides directions by stating in

advance how work is to be done.

(b) Planning reduces risk of uncertainty by

anticipating and showing how to deal with

changes.

(c) Planning reduces overlapping and wasteful

activities by coordinating the efforts of different

divisions.

(d) Planning promotes innovative ideas as newideas can take the shape of concrete plans.

(e) Planning facilitates decision making by helping

the manager to make a choice from among the

various alternative courses of action.

(f) Planning establishes standards for controlling

and thus helps in finding out the deviations.



1 x 5

=

5marks

24 26 25 Q. Differentiate between Capital Market and

Money Market on the basis of the following:

(i) Safety

(ii) Expected Return

(iii) Investment outlay

(iv) Participants

(v) Duration

Ans. Difference between Capital Market and

Money Market:Basis Capital Market Money Market

(i) Safety Capital market

instruments are

riskier both with

respect to returns

and principal

repayment.

Money market

instruments are

generally much

safer with a

minimum risk

of default.

(ii)

Expected

return

The investment

in capital

markets

generally yields

a higher return.

The expected

rate of return

of the money

market is less.

(iii)

Investment

outlay

Investment outlay

is small.

Investment

outlay is large.

(iv)

Participants

The participants

are financial

The participants

are RBI,

1 x 5=

5marks

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institutions, banks,

corporates, foreign

investors and retail

investors.

financial

institutions,

banks,

corporates,

(v) Duration It deals in medium

term and long

term securities.

It deals in short

term securities

25 24 26 Q. What is meant by Physical Distribution?

Explain its major components.

Ans. Physical Distribution refers to physical

handling and movement of goods from place of

production to place of distribution.

Components of physical distribution:

(a) Order processing.(b) Transportation

(c) Warehousing

(d) Inventory control




1 mark for the

meaning

+

mark for

naming the

component

+

mark for its

explanation=1 x 4

=4 marks

=1+4

=5 marks

26 25 24 Q. Principles of Taylor and Fayol are mutually

complementary. One believed that the

management should scientifically select the

person and the work assigned should suit his/her

physical and intellectual capabilities, while the

other suggested that the work can be performed

more efficiently if divided into specialized tasks.

Identify and explain the principles of Fayol and

Taylor referred to in the above para.

(i) The principle of Fayol referred to is Division

of work.

It states that the work should be divided into small

tasks/ jobs each performed by a specialist or trainedemployee.

(ii) The principle of Taylor referred to is

Development of each and every person to his or

her greatest efficiency and prosperity.

It states that to increase efficiency, each person

should be scientifically selected, assigned the jobs

on the basis of their capabilities and subsequently

given the right training to learn the one best method

to do a job.

1 mark for

identification

+

1 marks

for its

explanation

=

2 x 2

=

5marks

27 - - Q. With the help of any four points, explain thecrucial role of Organising function in an

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9

enterprise.

Ans. Role of organising: (Any four)

(i) Benefits of specialisation.

(ii) Clarity in working relationships.

(iii) Optimum utilisation of resources.

(iv) Adaptation to change.(v) Effective administration.

(vi) Development of personnel.

(vii) Expansion and growth.




OR

Q. Differentiate between Functional and

Divisional structure of organizing on the basis

of the following:

(i) Meaning(ii) Formation

(iii) Specialisation

(iv) Responsibility

(v) Managerial Development

(vi) Cost involved

Basis Functional

Structure

Divisional

Structure

(i)Meaning Functional

structure is an

organisational

structure formed

by grouping of

jobs of similar

nature under

various

functional

departments.

Divisional

structure is an

organisation

structure

comprising of

separate

business units

or divisions.

(ii)Formation It is based on

Functions

It is based upon

product lines

and is

supported by

functions

(iii)

Specialisation

It involves

functional

specialisation.

It involves

product

specialisation.

(iv)

Responsibility

It is difficult to

fix responsibility

on any one

department.

It is easy to fix

responsibility

for

performance.

(v)Managerial

Development

Managerial

development is

difficult, as eachfunctional

Managerial

development is

easier because adivisional

mark for

each heading

+

1 mark for each

explanation= 1 x 4

=

6marks

OR

1 x 6

=

6 marks

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manager has to

report to

manager

manager has the

autonomy as

well as the

chance to

perform

multiple

functions.

(vi) Cost

Involved

It is economical

as the functions

are not

duplicated.

It is costly as

there is

duplication of

resources in

various

departments.

28 27 28 Q. Explain any four points which highlight the

importance of controlling.

Ans. Importance of controlling: (Any four)(i) Accomplishing organisational goals.

(ii) Judging accuracy of standards.

(iii) Making efficient use of resources.

(iv) Improving employee motivation.

(v) Ensuring order and discipline.

(vi) Facilitating coordination in action.




OR

Q. Explain the relationship between planning

and controlling.

Ans. Ans. Relationship between planning and

controlling:

There is a close and reciprocal relationship between

planning and controlling because:

1. Controlling is blind in the absence of standards

which are provided by planning;

2. Planning without controlling is meaningless as

controlling ensures that the events conform to theplans.

3. Planning prescribes an appropriate course of

action for achieving objectives whereas controlling

evaluates whether decisions have been translated

into desired actions.

4. Planning and controlling are both forward-

looking and looking back.

(Note: If the answer covers the above points in

any other form, full credit should be given)

mark for

each heading

+1 mark for each

explanation

=

1 x 4

=

6 marks

OR

1 x 4

=

6 marks

29 - - Q. Explain the following as factors affecting therequirements of working capital:

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(i) Business cycle



(iv) Availability of raw materialAns. Factors affecting the requirements of working

capital:(i) Business cycle

In boom, more working capital is required because

of more sales and production.


A firm which allows credit to its customers requires

more working capital whereas a firm which avails

credit from its suppliers requires less working

capital.


A firm managing its operations efficiently requires

less working capital.(iv) Availability of raw material

If the raw materials are available freely and

continuously, less working capital is required.

OR

Q. Explain the following as factors affecting the

choice of capital structure:


(ii) Flexibility


(iv) Control

Ans. Factors affecting the choice of capital

structure:


The company may choose more debt in the capital

structure of the return on investment is higher than

the rate of interest on debt.

(ii) Flexibility

A firm which would like to have flexibility in the

capital structure would choose more of equity as

excessive debt in the capital structure imposesrestrictions on the use of further debt.


A firm may choose to have more debt in the capital

structure if it has a lower business risk and financial

risk.

(iv) Control

A firm which would like to retain control would

prefer more debt as issue of equity would lead to

reduction of managements holding in the

company.

1 x 4

=

6 marks

OR

1 x 4

=

6 marks

30 28 27 Q. Explain the following functions of marketing:

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12

(i) Marketing Planning



(iv) Standardisation and Grading

Ans. (i) Marketing Planning

This involves development of marketing plans likeplan for increasing the level of production,

promotion of the products, etc to achieve the

marketing objectives of the organisation.


Product designing and development helps to make

the product attractive to the target customers. A

good design can improve performance of a product

and also give it a competitive advantage in the

market.


Pricing involves crucial decisions like setting thepricing objectives, determining the pricing

strategies, fixing the price etc.

(ii) Standardization and Grading

Standardisation ensures uniformity and consistency

in output reducing the need for inspection and

testing of the products. Grading ensures that the

goods belong to a particular quality and helps in

realising higher prices for better quality products.

OR

Q. Though advertising is one of the most

frequently used media of promotion of goods

and services, yet it attracts lot of objections.

Explain any four such objections.

Ans. Though advertising is one of the most

frequently used medium of promotion of goods and

services, yet it attracts lot of objections which are:

(Any four)

(i) Adds to Cost:

Advertising unnecessarily adds to the cost of the

product, which is ultimately passed on to the buyersin the form of high prices.

(ii) Undermines Social Values:

Advertising undermines social values and promotes

materialism and discontent among people.

(iii) Confuses the Buyers:

There are so many products being advertised that

the buyer gets confused as to which one should he

buy.

(iv) Encourages Sale of Inferior Products:

Advertising does not distinguish between superior

and inferior products and persuade people topurchase even the inferior products.

1 x 4

=

6marks

OR

mark for

each heading+

1 mark for each

explanation

= 1 x 4

=

6marks

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(v) Some Advertisements are in Bad Taste:

Another criticism against advertising is that some

advertisements are in bad taste. They may not be

approved by the society in general.

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Documents

CBSE 2014 Question Paper for Class 12 Business Studies - Foreign