Strictly Confidential: (For Internal and Restricted Use Only)

Senior School Certificate Examination

March -----2024
Marking Scheme---Business Studies (054) 66/4/2
General Instructions:
1 You are aware that evaluation is the most important process in the actual and correct
assessment of the candidates. A small mistake in evaluation may lead to serious
problems which may affect the future of the candidates, education system and teaching
profession. To avoid mistakes, it is requested that before starting evaluation, you must
read and understand the spot evaluation guidelines carefully.
2 “Evaluation policy is a confidential policy as it is related to the confidentiality of
the examinations conducted, Evaluation done and several other aspects. Its’
leakage to public in any manner could lead to derailment of the examination
system and affect the life and future of millions of candidates. Sharing this
policy/document to anyone, publishing in any magazine and printing in News
Paper/Website etc may invite action under various rules of the Board and IPC.”
3 Evaluation is to be done as per instructions provided in the Marking Scheme. It should
not be done according to one’s own interpretation or any other consideration. Marking
Scheme should be strictly adhered to and religiously followed. However, while
evaluating, answers which are based on latest information or knowledge and/or
are innovative, they may be assessed for their correctness otherwise and due marks
be awarded to them. In class -XII, while evaluating two competency based
questions, please try to understand given answer and even if reply is not from
marking scheme but correct competency is enumerated by the candidate due
marks should be awarded.
4 The Marking scheme carries only suggested value points for the answers
These are in the nature of Guidelines only and do not constitute the complete answer.
The students can have their own expression and if the expression is correct, the due
marks should be awarded accordingly.
5 The Head-Examiner must go through the first five answer books evaluated by each
evaluator on the first day, to ensure that evaluation has been carried out as per the
instructions given in the Marking Scheme. If there is any variation, the same should be
zero after deliberation and discussion. The remaining answer books meant for
evaluation shall be given only after ensuring that there is no significant variation in the
marking of individual evaluators.
6 Evaluators will mark( √ ) wherever answer is correct. For wrong answer CROSS ‘X”
be marked. Evaluators will not put right (✓)while evaluating which gives an impression
that answer is correct and no marks are awarded. This is most common mistake which
evaluators are committing.
7 If a question has parts, please award marks on the right-hand side for each part. Marks
awarded for different parts of the question should then be totaled up and written in the
left-hand margin and encircled. This may be followed strictly.
8 If a question does not have any parts, marks must be awarded in the left-hand margin
and encircled. This may also be followed strictly.

1
9 If a student has attempted an extra question, answer of the question deserving more
marks should be retained and the other answer scored out with a note “Extra
Question”.
10 No marks to be deducted for the cumulative effect of an error. It should be penalized
only once.
11 A full scale of marks 80 as given in Question Paper has to be used. Please do not hesitate
to award full marks if the answer deserves it.
12 Every examiner has to necessarily do evaluation work for full working hours i.e., 8
hours every day and evaluate 20 answer books per day in main subjects and 25 answer
books per day in other subjects (Details are given in Spot Guidelines). This is in view
of the reduced syllabus and number of questions in question paper.
13 Ensure that you do not make the following common types of errors committed by the
Examiner in the past:-
● Leaving answer or part thereof unassessed in an answer book.
● Giving more marks for an answer than assigned to it.
● Wrong totaling of marks awarded on an answer.
● Wrong transfer of marks from the inside pages of the answer book to the title page.
● Wrong question wise totaling on the title page.
● Wrong totaling of marks of the two columns on the title page.
● Wrong grand total.
● Marks in words and figures not tallying/not same.
● Wrong transfer of marks from the answer book to online award list.
● Answers marked as correct, but marks not awarded. (Ensure that the right tick mark
is correctly and clearly indicated. It should merely be a line. Same is with the X for
incorrect answer.)
● Half or a part of answer marked correct and the rest as wrong, but no marks
awarded.
14 While evaluating the answer books if the answer is found to be totally incorrect, it
should be marked as cross (X) and awarded zero (0)Marks
15 Any unassessed portion, non-carrying over of marks to the title page, or totaling error
detected by the candidate shall damage the prestige of all the personnel engaged in the
evaluation work as also of the Board. Hence, in order to uphold the prestige of all
concerned, it is again reiterated that the instructions be followed meticulously and
judiciously
16 The Examiners should acquaint themselves with the guidelines given in the
“Guidelines for spot Evaluation” before starting the actual evaluation.
17 Every Examiner shall also ensure that all the answers are evaluated, marks carried over
to the title page, correctly totaled and written in figures and words.
18 The candidates are entitled to obtain photocopy of the Answer Book on request on
payment of the prescribed processing fee. All Examiners/Additional Head
Examiners/Head Examiners are once again reminded that they must ensure that
evaluation is carried out strictly as per value points for each answer as given in the
Marking Scheme

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66 MARKING SCHEME– 2024
/4 BUSINESS STUDIES - 054 Marks
/2 66/4/2
EXPECTED ANSWERS / VALUE POINTS
1 Q ______________ is the step in the controlling process where
standards may have to be revised in case the deviation can not be
corrected through managerial action.
(A) Setting Performance Standards.
(B) Measurement of Actual performance.
(C) Comparing Actual Performance with standards and analysing
deviation.
(D) Taking corrective action

Ans (D) Taking corrective action

1 mark
2 Q. Choose the incorrect statement with respect to levels of
management from the following:
(A) Operational level management is responsible for maintaining
quality of output.
(B) At middle level management, managers carry out the plans
formulated by the top level managers.
(C) At top level management, the managers are responsible for all
the activities of the business and its impact on the society.
(D) At top level management, the managers cooperate with other
departments for smooth functioning of the organisation

Ans (D) At top level management, the managers cooperate with other
departments for smooth functioning of the organisation
1 mark
3 Q ‘Merely allocating work is not enough. Each individual should
also know who he has to take orders from and to whom he is
accountable’.
The above statement is related to one of the steps of organising
process. Identify the step from the following:
(A) Identification and division of work
(B) Departmentalisation
(C) Assignment of duties
(D) Establishing authority and reporting relationship

Ans (D) Establishing authority and reporting relationship

1 mark
3
4 Q. A multinational sweets and snacks company had been into
catering business for the last many years. To add to its prospects
and to grow in the long run, it wants to increase its sales volume,
the number of products and capital investment.
The organisational objective of management it seeks to achieve is:
(A) Survival
(B) Profit
(C)Growth
(D) Corporate Social responsibility

Ans (C) Growth

1 mark
5 Q. The picture given below is the package of a perfume bottle:

Identify the level of packaging of the box shown above:

(A) Primary package
(B) Secondary packaging
(C) Transportation packaging
(D) Both (A) and (B)

Ans (B) Secondary packaging

1 mark
6 Q. Rajat was carrying on a business of manufacturing plastic
disposables like plates, plastic cups and plastic straws. He heard
about the upcoming ban on single use plastics. He was able to
identify this external enviornmental trend which could hinder his
firm's performance. So he took action and shifted to manufacturing
the plates, cups and straws from bamboo and palm leaves. As a
result, his business not only survived but was able to generate
profit.
The point of importance of Business Environment highlighted
above is:
(A) It enables the firm to identify opportunities and getting the
first mover advantage.
4
 (B) It helps the firm to identify threats and early warning signals.
(C) It helps in tapping useful resources.
(D) It helps in assisting in planning and policy formulation.

Ans (B) It helps the firm to identify threats and early warning signals.
1 mark
7 Q. Payal was working in a Multinational company. Her father
gifted her a smart phone worth 40,500 on her birthday. The mobile
phone was purchased by her father from his friend's shop. After
few months, the mobile phone started creating problems. Payal
tried to contact the manufacturer many times but he did not
respond. Ultimately Payal decided to file a complaint against the
manufacturer. The appropriate grievance redressal machinery
where Payal can file a complaint is:

(A) District Forum/Commission

(B) State Commission
(C) National Commission
(D) Supreme Court

Ans (A) District Forum/Commission

1 mark
8 Q. Which of the following is NOT a feature of demonetisation?
(A) It leads to creation of a less-cash or cash-less (free) economy
i.e. channeling more savings through the formal financial
system and improving tax compliance.
(B) It is interpreted as a shift on the part of the government
indicating that tax evasion will no longer be tolerated or
accepted.
(C) It is viewed as a tax administration measure.
(D) It led to tax administration channelising savings away from
the formal financial system.

Ans (D) It led to tax administration channelising savings away from the
formal financial system.
1 mark
9 Q. Lyka Ltd. launched its new range of herbal shampoos at the
beginning of the year. As per legal framework, Lyka Ltd. provided
the name and address of the manufacturer, the weight,
manufacturing date, expiry date, maximum retail price etc. on the
package and label of the herbal shampoo.

The consumer right highlighted above is:

5
 (A) Right to choose
(B) Right to be informed
(C) Right to consumer education
(D) Right to safety

Ans (B) Right to be informed

1 mark
10 Q. ‘It is a process that allocates or directs funds available for
investment into their most productive instrument opportunity’.

This is known as:

(A) Financial planning
(B) Financial Intermediation
(C)Allocative function
(D) Capital budgeting

Ans (B) Financial Intermediation

1 mark
11 Q. Which of the following is an advantage of Informal
organisation?
(A) It provides stability to the organisation because behaviour of
employees can be fairly predicted since there are specific rules
to guide them.
(B) It leads to effective accomplishment of goals by providing a
framework for the operations to be performed.
(C) It enhances the employee's job satisfaction since it gives them
a sense of belongingness in the organisation and allows them to
find like minded people.
(D) It helps in avoiding duplication of efforts as there is no
ambiguity in the role that each member has to play.

Ans (C) It enhances the employee's job satisfaction since it gives them a
sense of belongingness in the organisation and allows them to find like
minded people.
1 mark
12 Q. _____________ is the process by which a manager synchronises
the activities of different departments.
(A) Management
(B) Planning
(C) Co-ordination
(D) Directing

6
 Ans (C) Co-ordination
1 mark
13 Q. Statement I: That part of a brand which can be spoken is called
a brand name.
Statement II: That part of the brand which is given legal protection
is called Trademark.

Choose the correct option from the following:

(A) Statement I is true and Statement II is false.
(B) Statement II is true and Statement I is false.
(C) Both the statements are true.
(D) Both the statements are false.

Ans (C) Both the statements are true.

1 mark
14 Q. _____________ is the process of holding securities in electronic
form.

(A) Financial Intermediation

(B) Dematerialisation
(C) Allocative function
(D) Mobilisation of securities

Ans (B) Dematerialisation

1 mark
15 Q. Samaira and her friend, Sana wanted to watch a movie over the
weekend. They booked the movie tickets online and chose the seats
as per their preference at the click of a button at the desired movie
hall. Now going to theatre for booking of tickets is no longer
required.

The dimension of business environment reflected in the above para

is:
(A) Political environment
(B) Social environment
(C) Legal environment
(D) Technological environment

Ans (D) Technological environment

1 mark
16 Q. Statement - I: Business Environment is dynamic as it differs
from country to country.

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 Statement II: Business Environment is largely uncertain as it is
very difficult to predict future happenings.

Choose the correct option from the following:

(A) Statement I is true and Statement II is false.
(B) Statement II is true and Statement I is false.
(C) Both the statements are true.
(D) Both the statements are false.

Ans (B) Statement II is true and Statement I is false. 1 mark

17 Q. Read the following statements Assertion (A) and Reason (R).

Choose the correct option from the given options.
Assertion (A): Amount of Earnings is a major determinant of the
decision about dividend.
Reason (R) : Dividends are paid out of current and past earnings.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true but Reason (R) is
not correct explanation of Assertion (A).
(C) Assertion (A) is true but Reason (R) is false.
(D) Assertion (A) is false but Reason (R) is true.

Ans. (A) Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A).
1 mark
18 Q. Which of the following is NOT a feature of Directing function of
management?
(A) Directing initiates Action.
(B) Directing takes place at every level of management.
(C) Directing ensures that activities are performed as per plans.
(D) Directing flows from top to bottom.

Ans (C) Directing ensures that activities are performed as per plans.

1 mark
19 Q. ‘Marbury biscuits' launched its new range of oat cookies in three
varieties. They decided to distribute free samples of their biscuits in
schools as a part of their promotional campaign.

Identify the tool of promotion used by 'Marbury Biscuits':

(A) Advertising
(B) Personal Selling
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 (C)Sales Promotion
(D) Public Relations

Ans (C) Sales Promotion

1 mark
20 Q. Match the functions of Securities and Exchange Board of India
given in Column-I with their headings given in Column-II:
Column - I Column -II
A. Training of intermediaries of (i) Regulatory
securities markets function
B. Regulation of takeover bids by (ii) Protective
companies function
C. Controlling insider trading (iii) Development
and imposing penalties for function
such practices

Choose the correct alternative:

(A)/A(ii); B(iii); C(i)
(B) A(i); B(ii); C(iii)
(C) A(iii); B(i); C(ii)
(D) A(iii); B(ii); C(i)

Ans (C) A(iii); B(i); C(ii)

1 mark
21 Q. The rapid changes having taken place in the society have created
pressure on organisations to readapt its products, type of jobs
required and type of skills necessary to complete these jobs. To
keep up pace with the rapid changes in the business environment,
'Suzon cars', a company manufacturing automobiles for the last
thirty years decided to start manufacturing electric cars with
Artificial Intelligence technology. With the introduction of
Artificial Intelligence, the company had to improve the knowledge
and skills of its employees. They wanted that all their employees
improve their performance on the current job and are prepared for
any intended job in future. This way they would not only be able to
increase their knowledge and skills but would also improve their
performance. By doing this, the organisation too would get various
benefits.

(a) Identify the concept discussed above which would help the
employees to do the job in a better way using Artificial
Intelligence Technology.

9
 (b) State any five benefits of the concept identified in (a) above to
the organisation.

Ans
½ Mark
(a) Training
for
identifyin
(b) Benefits of training to an organisation:
g the
concept
(i) It 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) It equips the future manager who can take over in case of
emergency. ½ x5=
2½
(iv) It increases employee morale and reduces absenteeism and
Marks
employee turnover.
(v) It helps in obtaining effective response to fast changing environment
– technological and economic.

(If an examinee has only listed the underlined points, ½ mark for
each point should be awarded) (½+2½
=3
Marks)
22 Q. (a) Distinguish between ‘Capital Market’ and ‘Money Market’
on the basis of :
(i) Participants
(ii) Investment Outlay
(iii) Expected Return
Ans.
Distinction between ‘Capital Market’ and ‘Money Market’ :
Basis Capital Market Money market
Participants The participants are The participants are
financial institutions, institutional
banks, corporate participants such as the
entities, foreign RBI, banks,
investors and financial institutions
ordinary retail and finance 1x3=3
investors from companies. Marks
members of the
public
10
 Investment Securities do not Transactions entail
Outlay necessarily require a huge sums of money as
huge financial the instruments are quite
outlay expensive
Expected Generally yield Generally yield
Return a higher return for a lower return for
investors than investors than
the money market the capital market

OR OR

Q. (b) Explain the following as factors affecting 'Long term

Investment Decision:
(i) Cash flows of the project and
(ii) The investment criteria involved

Ans.
(i) Cash Flows of the project:
When a company takes an investment decision involving huge
amount it expects to generate some cash flows over a period.
These cash flows are in the form of a series of cash receipts 1 ½ Mark
and payments over the life of an investment
(ii) The investment Criteria involved:
It involves a number of calculations regarding the amount of
investment, interest rate, cash flows and rate of return. There 1 ½ Mark
are different techniques to evaluate investment proposals
which are known as capital budgeting techniques.
(1½+
1½ = 3
marks)
23 Q. (a) ‘Planning and controlling are inseparable twins of
management’. Explain with the help of any three points.

Ans.

Planning and controlling are inseparable twins of management

(any three)

1. Planning without controlling is meaningless and Controlling is

blind without planning

Once a plan becomes operational, controlling is necessary to monitor

the progress, measure it, discover deviations and initiate corrective

11
measures to ensure that events conform to plans. So, Planning without
controlling is meaningless. A system of control presupposes the
existence of certain standards which are provided by planning.
Therefore, controlling is blind without planning

2. Planning is a prerequisite for controlling while controlling seeks 1x3=3

to compel events to conform to plans Marks

Without planning there is no predetermined understanding of the

desired performance while controlling seeks to compel events to
conform to plans

3. Planning is prescriptive while controlling is evaluative

Planning is basically an intellectual process involving thinking,

articulation and analysis to discover and prescribe an appropriate course
of action for achieving objectives. Controlling, on the other hand,
checks whether decisions have been translated into desired action.

4. Planning is forward-looking while controlling is looking back

Planning involves looking ahead as plans are prepared for future and
are based on forecasts about future conditions. On the contrary,
controlling is like a postmortem of past activities to find out deviations
from the standards. In that sense, controlling is looking back.

5. Controlling is forward-looking while planning is looking back

The corrective action in controlling seeks to improve the performance

in the future or to revise future plans. So, controlling is also forward
looking. However, it should be understood that planning is guided by
past experiences and the corrective action initiated by control function
aims to improve future performance. Thus, planning is also looking
back.

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

OR OR

12
 Q. (b) Explain 'Critical point control' and 'Management by
exception' as discussed in the controlling process.
Ans.

1. Critical Point Control:

Control should focus on key result areas (KRAs) which are
critical to the success of an organisation. These KRAs are set as
the critical points. If anything goes wrong at the critical points, 1 ½ Mark
the entire organisation suffers.
2. Management by Exception:
Management by exception, also known as control by exception,
is based on the belief that an attempt to control everything results
in controlling nothing. Thus, only significant deviations which go 1 ½ Mark
beyond the permissible limit should be brought to the notice of
management.
(1 ½ + 1
½=3
Marks)
24 Q. Three friends, Aman, Ashish and Ashi after completing their
MBA from a reputed management institute, formed a start up
named 'Solutions'. The goal of the start up was to make a social and
environmental impact through its services. 'Solutions' supports
social business ideas to improve living conditions in slums of
Mumbai. As all the three friends are specialised in social work, they
adopted three different slums of Mumbai and started educating the
slum dwellers in their own creative manner. Aman used 'playway
method', Ashish used 'music' as a method of learning while Ashi
used 'activity based method of learning'. They used basic
knowledge in their unique manner and were able to educate the
slum dwellers.

It implies that skillful and personal application of acquired

knowledge varies from individual to individual in achieving desired
results.
(a) Identify and state the nature of management discussed in the
above case.
(b) Quoting lines from the above para, state any two features of
nature of management identified in (a) above.

Ans.
(a) Management as an Art

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 Art refers to skillful and personal application of existing knowledge to (½+½=
achieve desired results. 1 Mark)

( ½ Mark
(b) Features of Management as an Art:
for
quoting
(i) Personalised Application: the lines
‘They used basic knowledge in their unique manner and were able to + ½ Mark
educate the slum dwellers.’ for
OR correct
‘skillful and personal application of acquired knowledge varies from Statemen
t)
individual to individual’
A manager applies this acquired knowledge in a personalised and
skillful manner in the light of the realities of a given situation.
(1+1 = 2
(ii) Based on Practice and creativity: Marks)
‘they adopted three different slums of Mumbai and started educating
the slum dwellers in their own creative manner.’
A good manager works through a combination of practice, creativity,
imagination, initiative and innovation.
(1+2 = 3
Marks)
25 Q. (a) State any four points that highlight the importance of
directing function of management.

Ans.
Importance of Directing: (Any four)

(i) Directing helps to initiate action by people in the organisation

towards attainment of desired objectives.
(ii) Directing integrates employees efforts in the organisation in
such a way that every individual effort contributes to the
organizational performance.
(iii) Directing guides employees to fully realise their potential and
capabilities by motivating and providing effective leadership.
(iv) Directing facilitates introduction of needed changes in the
organisation through motivation, communication and leadership.
(v) Effective directing helps to bring stability and balance in the
organisation since it fosters cooperation and commitment among 1 x 4 = 4
the people Marks

14
 (If an examinee has only listed the underlined points, ½ mark for
each point should be awarded)

OR OR

Q. (b) Explain the following 'Semantic barriers' to communication:

(i) Badly expressed message
(ii) Symbols with different meanings

Ans.
(i) Badly expressed message:
 Some times intended meaning may not be conveyed by a
manager to his subordinates.
 These badly expressed messages may be on account of
inadequate vocabulary, usage of wrong words, omission of 2 Marks
needed words etc
(ii) Symbols with different meanings:
 A word may have several meanings and the receiver has to
perceive one such meaning for the word used by communicator.
2 Marks
 Wrong perception leads to communication problems.

(If an examinee has given any other appropriate explanation, full

marks to be awarded) 2+2= 4
Marks
26 Q. Nishi had gone to a grocery store to make routine purchases. On
reaching home, as she took out Binx tomato chips packet from the
bag to give it to her son, she felt that it was underweight. She
checked its weight on the kitchen weighing scale and found that it
weighed 60 grams whereas the label on the chips packet mentioned
the weight of the packet as 100 grams. She approached the
manufacturer and complained about it. The manufacturer offered
her a gift hamper and requested her not to disclose this to anyone.
Nishi refused to accept the gift hamper and took the issue to a
redressal agency.

a) State two responsibilities discharged by Nishi, as a consumer, in

the above case

b) State any two reliefs which can be granted to Nishi, if the

consumer court is satisfied with the genuineness of the complaint.

Ans.
15
 a) Responsibilities discharged by Nishi:
(i) Read labels carefully so as to have information about prices, net
weight, manufacturing and expiry dates, etc.
(ii) File a complaint in an appropriate consumer forum in case of a 1x2=2
shortcoming in the quality of goods purchased or services marks
availed. Do not fail to take an action even when the amount
involved is small.

b) Reliefs available (Any two):

(i) To replace the defective product with a new one, free from
any defect.
(ii) To refund the price paid for the product, or the charges
paid for the service.
1x2=2
(iii)To pay a reasonable amount of compensation for any loss Marks
or injury suffered by the consumer due to the negligence
of the opposite party.
(iv) To pay punitive damages in appropriate circumstances.
(v) To discontinue the unfair/ restrictive trade practice and
not to repeat it in the future.
(vi) To pay adequate cost to the appropriate party.
(2 +2 = 4
(If an examinee has only listed the underlined points, ½ mark for
Marks)
each point should be awarded)
27 Q. Kaysons Ltd. was a reputed company manufacturing automotive
parts for electric vehicles. As the demand for the electric vehicles
grew, Kaysons Ltd. needed more capital to keep up with the
demand for automotive parts. Atul, the Finance Manager of
Kaysons Ltd. suggested that the company should raise funds
through a public issue of shares as the stock market was bullish.
The Chief Executive Officer fully understood that this process of
raising funds would not only reduce the managements' holding in
the company but would also require considerable expenditure.
Even then he agreed with the Finance Manager and the public issue
of shares was made complying with the guidelines of Securities and
Exchange Board of India.
Identify and state four factors affecting choice of capital structure
being discussed above.

Ans.
(i) Stock Market Conditions:

16
 If the stock markets are bullish, use of equity is preferred as they are
more easily sold even at a higher price and in bearish conditions, it’s ( ½ Mark
better to opt for debt for
(ii) Control: identifica
Issue of more equity may lead to dilution of management’s control over tion + ½
the business. mark for
(iii) Floatation Costs: statement
Process of raising resources also involves some cost. These )
considerations may also affect the choice between debt and equity
(iv) Regulatory Framework:
While deciding the capital structure, the regulatory framework provided
by law e.g. SEBI should be considered. (1 x 4 = 4
Marks)
28 Explain the following factors affecting the working capital
requirements of a company:
(a) Production Cycle
(b) Seasonal factors

Ans.
(a) Production Cycle:
 Production cycle is the time span between the receipt of raw
material and their conversion into finished goods.
 Working capital requirement is higher in firms with longer 2 Marks
processing cycle and lower in firms with shorter processing
cycle.

(b) Seasonal factors:

 In peak season, because of higher level of activity, larger amount 2 Marks
of working capital is required.
 As against this, the level of activity as well as the requirement for
working capital will be lower during the lean season.
(2 +2 = 4
Marks)
29 Q. ‘Shanta Enterprises’ was in the business of manufacturing solar
panels for the last fifteen years. With their expertise now they were
able to manufacture good quality solar panels at lower cost. As a
result 'Shanta Enterprises' was flooded with orders and was able to
generate a good profit margin.
To motivate the employees the company decided to compensate
some of them for their hard work. Arvind and Yogesh, who were
working on contract basis, were absorbed permanently in the
company. Both were happy as now there was stability about their
17
 future income. Ekta, a regular employee of the company, working
as Research and Development Head, was awarded the 'Best
Employee of the year Award'.

(a) Identify and explain the incentives given by Shanta

Enterprises to its employees.
(b) State the needs of the employees being met by such incentives
as per Maslow's Need Hierarchy Theory.
Ans.
(a) Incentives given by Shanta Enterprises to its employees:
½ Mark
1. Job security: for
Identifica
It refers to stability about future income and work so that the
tion + ½
employees do not feel worried on these aspects and work with Mark for
greater zeal. explanati
2. Employee Recognition programmes: on
It refers to acknowledgment with a show of appreciation so that
the employees feel motivated to perform/work at higher level. (1+1= 2
Marks)

(b) The needs of the employees being met by such incentives as per
Maslow's Need Hierarchy Theory:

(i) Safety/Security needs provide security and protection from

(1+1=2
physical and emotional harm. Marks)
(ii) Esteem needs include factors such as self-respect, autonomy
status, recognition and attention

(2+2= 4
(If an examinee has only listed the underlined points, ½ mark for
Marks)
each point should be awarded)
30 Q. (a) Explain the following steps of the selection process:
(i) Selection Tests
(ii) Employment Interview

Ans.
(i) Selection Tests:
 It is a mechanism that attempts to measure certain characteristics
of individuals. 2 Marks
18
  These characteristics range from aptitudes, such as manual
dexterity, to intelligence to personality.
(ii) Employment Interview:
 It is a formal, in-depth conversation conducted to evaluate the 2 Marks
applicant’s suitability for the job.
 The role of the interviewer is to seek information and that of the
interviewee is to provide the same. 2+2= 4
Marks

OR
OR
Q. (b) State any four points of importance of 'Staffing' function
of management.

Ans. Importance of ‘Staffing’ function of management (any four)

(i) It helps in discovering and obtaining competent personnel for

various jobs.
(ii) It makes for higher performance, by putting right person on the right
job.
(iii) It ensures the continuous survival and growth of the enterprise
through the succession planning for managers.
(iv) It helps to ensure optimum utilization of the human resources by
1x4=4
avoiding over manning and shortages of personnel.
Marks
(v) It improves job satisfaction and morale of employees through
objective assessment and fair reward for their contribution.

(If an examinee has only listed the underlined points, ½ mark for
each point should be awarded)

31 (a) Explain the following types of Plans:

(i) Objectives
(ii) Policy
(iii) Programme

Ans.
(i) Objectives:

19
  Objectives are the desired future position that the management
would like to reach, which need to be expressed in specific terms 2 marks
and should be in the form of a written statement.
 They are usually set by top management of the organization and
focus on broad, general issues.

(ii) Policy: 2 marks

 Policies are general statements that guide thinking or channelise
energies towards a particular direction.
 They are guides to managerial action and decisions in the
implementation of strategy.

(iii) Programme:
 Programmes are detailed statements about a project which
outlines the objectives, policies, procedures, rules, tasks, human 2 marks
and physical resources required and the budget to implement any
course of action.
 It will include the entire gamut of activities as well as the
organisation’s policy and how it will contribute to the overall (2+2+2=6
business plan. Marks)

OR OR

(b) Explain the following limitations of planning function of

management:
(i) Planning reduces creativity.
(ii) Planning involves huge cost.
(iii) Planning does not guarantee success.

Ans. Limitations of planning function of management:

(i) Planning reduces creativity:
 Middle management and other decision makers are neither
allowed to deviate from plans done by top management nor are
2 marks
they permitted to act on their own.
 Thus, much of the initiative or creativity inherent in them also
gets lost or reduced.

(ii) Planning involves huge cost:

20
  When plans are drawn up huge costs are involved in their
formulation in terms of time and money.
 The costs incurred sometimes may not justify the benefits derived
from the plans. 2 marks

(iii) Planning does not guarantee success:

 Managers have a tendency to rely on previously tried and tested
successful plans.
 It is not always true that just because a plan has worked before it
will work again. 2 marks

(2+2+2=6
Marks)

32 Preeti started her own cooking channel on ‘Youtube Mood Art’. As

her subscribers increased, she was not in a position to manage
everything on her own. She hired Rahul and Riya to help her with
filming editing, lighting and content research. She granted
authority to them to opeгate within prescribed limits. She was thus,
able to use her time on high priority activities like developing new
recipes and content development etc. As a result, Rahul and Riya
were given opportunities to develop and exercise initiative. Preeti
was now able to focus on objectives and meet the target of achieving
a subscriber base of one million in six months.
(a) Identify the concept of management used by Preeti to focus on
objectives of her business and meet her targets.
(b) Explain any five point of importance of the concept identified in
(a) above.

Ans.
(a) Delegation 1 Mark

(b) Importance of Delegation: (any five with explanation)

(i) Effective management
(ii) Employee development (½ Mark
(iii) Motivation of employees for
heading +
(iv) Facilitation of growth
½ Mark
(v) Basis of management hierarchy for
(vi) Better coordination explanati
on)
(1 x 5 = 5
Marks)
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 (If an examinee has not given the headings as above but has given the
correct explanation, full credit should be given) (1+5 = 6
Marks)
33 (a) Explain the following as functions of marketing:
(i) Gathering and Analysing Market information
(ii) Standardisation and Grading
(iii) Consumer Support Services

Ans. Functions of Marketing:

(i) Gathering and Analysing Market information:

 This function is necessary to identify the needs of the customers
and take various decisions for the successful marketing of the 2 marks
products and services.
 This is important for making an analysis of the available
opportunities and threats as well as strengths and weaknesses of
the organization.

(ii) Standardisation and Grading:

 Standardisation refers to producing goods of predetermined
specifications, which helps in achieving uniformity and
consistency in the output 2 marks
 Grading is the process of classification of products into different
groups, on the basis of some of its important characteristics such
as quality, size, etc.

(iii) Consumer support services:

 Consumer support services include after sales services, handling
customer complaints and adjustments, procuring credit services,
maintenance services, technical services and consumer
information.
 These services aim at providing maximum satisfaction to the
customers, and are very effective in bringing repeat sales from 2 marks
the customers and developing brand loyalty for a product. (2+2+2=
6 marks)
OR
OR
(b) Explain the components of Physical distribution.

Ans. Components of Physical distribution: (with explanation)

(i) Order Processing ( ½ mark
(ii) Transportation for each
heading +
22
 (iii) Warehousing 1 mark
(iv) Inventory Control for its
explanati
on)

(1½x4
=6
Marks)
34 Q. Ankur Sachdeva did his MBA from ITB University. He decided
to apply his knowledge of scientific management in the fast food
restaurant chain 'Coffee Bean' set up by him. This restaurant was
providing burgers, fries, shakes etc, as a part of its menu.

Now a days people are quality conscious, so he was using

standardised raw materials, processes, methods, working
conditions, machinery etc. The objective was to establish standards
of excellence. By doing this he was not only able to reduce the cost
but was also able to provide new varieties of burgers, fries and
shakes leading to increased turnover.

Ankur Sachdeva also believed that there was only one best method
to maximise efficiency. As a result he developed best way of grilling
burgers, cooking fries and preparing shakes. His main objective
was to maximise the satisfaction of customers, which he was able to
achieve.

Not only to learn the best way of doing a job, but to perform their
tasks efficiently, 'Coffee Bean' regularly invests in training and
development programmes to equip employees with the necessary
skill and knowledge. 'Coffee Bean' believed that efficient employees
will produce more and earn more. This will ensure their greatest
efficiency and prosperity for both company and workers.

The above case highlights the use of Scientific principles and

techniques by 'Coffee Bean'. Explain any one such principle and
two techniques.

Ans.
Scientific principles of management: (any one)
Development of Each and Every Person to His or Her Greatest
Efficiency and Prosperity:
23
 Taylor believed that each person should be scientifically selected.
Then work assigned should suit her/his physical, mental and
intellectual capabilities. To increase efficiency, they should be
given the required training.
2 Marks
Science not Rule of Thumb:
Taylor believed that there was only one best method to maximise
efficiency which should be developed through study and analysis.
The method so developed should substitute ‘Rule of Thumb’
throughout the organisation. This results in tremendous saving of
human energy as well as wastage of time and material.

Techniques of scientific management:

Method Study
The objective of method study is to find out one best way of
doing the job. The objective of the whole exercise is to minimise
2 Marks
the cost of production and maximise the quality and satisfaction
of the customer. For this purpose many techniques like process
charts and operations research etc are used.

Standardisation & Simplification: (Standardisation)

Standardisation refers to the process of setting standards for
every business [Link] can be standardisation of process, raw
2 Marks
material, time, product, machinery, methods or working
conditions. These standards are the benchmarks, which must be
adhered to during production.

(If an examinee has given only the heading , ½ mark for each (2+2+2=6
heading should be awarded) Marks)

24