Solved Paper 2015

BUSINESS STUDIES
Class-XII
Time : 3 Hours Max. Marks : 100

General Instructions:
(i) Answers to questions carrying 1 mark may be from one word to one sentence.
(ii) Answers to questions carrying 3 marks may be from 50 – 75 words.
(iii) Answers to questions carrying 4 – 5 marks may be about 150 words.
(iv) Answers to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a question together.

Delhi Set I Code No. 2/1/1

1. What is meant by ‘efficiency’ in management? 1 Ans. Low, as it is a service industry, which usually do not
Ans. Efficiency means doing the task correctly and with have to maintain inventory.
minimum cost. 7. ‘Beauty Products Ltd’ is a natural and ethical
 (or any other correct definition) beauty brand famous for offering organic beauty
2. How does management help in achieving personal products for men and women. The company
objectives? State. 1 uses plant based materials for its products and is
Ans. Management helps in achieving personal objectives the No.1 beauty brand in the country. It not only
by motivating and leading in such a way that satisfies its customers but also believes in overall
the individual members are able to achieve protection of the planet.
personal goals while contributing to the overall Identify the marketing management philosophy
organisational objectives.
being followed by ‘Beauty Products Ltd.’ 1
3. Define ‘planning premises’. 1
Ans. Societal marketing concept.
Ans. Planning premises are the assumptions made
8. On Sonika’s birthday her mother gave her a pair
about the future on the basis of which the plans are
drawn. of gold earrings. After one month Sonika observed
that the ear-rings are losing their shine. She
4. Alliance Ltd. is engaged in manufacturing plastic
checked the mark on the ear-rings and found that
buckets. The objective of the company is to
manufacture 100 buckets a day. To achieve this, it was not a proper Hallmark and her mother had
the efforts of all departments are co-ordinated been cheated by the shopkeeper. So, she filed a
and interlinked and authority- responsibility complaint in the district forum which rejected it.
relationship is established among various job Not satisfied by the decision of district forum, she
positions. There is clarity on who is to report to was very much disturbed and after two months
whom. decided to appeal further.
Name the function of management discussed Can Sonika appeal against the decision of the
above.1 district, forum? Give reason in support of your
Ans. Organising. answer.1
5. Explain how‘ cost of debt‘ affects the choice of Ans. No, Sonika cannot appeal now as the appeal has to
capital structure of a company. 1 be filed within 30 days of passing of the order by the
Ans. ‘Cost of debt‘ affects the choice of capital structure district forum.
of a company as low interest rates increase a firm’s 9. What is meant by functional structure' of an
capacity to employ higher debt. organisation? State its any tv two advantages. 3
6. ‘Indian Logistics’ has its own warehousing Ans. Functional structure is an organisational structure
arrangements at key locations across the country. formed by grouping of jobs of similar nature under
Its warehousing services help business firms to functions and organising these major functions as
reduce their overheads, increase efficiency and separate departments like production, finance etc.
cut down distribution time. State with reason,
Advantages:  (Any two)
whether the working capital requirements of
‘Indian Logistics’ will be high or low. 1 (a) It leads to occupational specialisation since empha-
sis is placed on specific functions.
SOLVED PAPER - 2015 (BUSINESS STUDIES)

(b) It promotes control and coordination within a Ans. (a) Badly expressed message.
department because of similarity in the tasks being (b) Semantic barrier which arises from problems
performed. and obstructions in the process of encoding and
(c) It increases managerial and operational efficiency. decoding of message into words or impressions.
(d) It lowers cost as it reduces duplication of effort. (c) Other barriers in the same category are: (Any one)
(e) It makes training of employees easier as it focuses (i) Symbols with different meanings
on a limited range of skills. (ii) Faulty translations
(f) It ensures that different functions get due attention. (iii) Unclarified assumptions
(If an examinee has given only the heading, ½ (iv) Technical jargon
mark for each heading should be awarded) (v) Body language and gesture decoding.
* 10. Explain how the 'product related factors' affect the 14. What is meant by ‘business environment’? State
choice of channels of distribution? 3 any three points of its importance. 4
11. Pramod was a supervisor at 'Annapurna Aata' Ans. Business environment means the sum total of all
factory. The factory was producing 200 quintals individuals, institutions and other forces that are
of aata every day. His job was to make sure that outside the control of a business enterprise but that
the work goes on smoothly and there was no may affect its performance.
interruption in production. He was a good leader Importance of business environment: (Any three)
who would give orders only after consulting his 1. It helps to identify opportunities and getting the
subordinates and work out the policies with the first mover advantage instead of losing them to the
acceptance of the group. competitors.
Identify and describe the leadership style being 2. It helps to identify threats on time which serves as
adopted by Pramod. 3 an early warning signal.
Ans. Democratic style of leadership. 3. It helps in tapping useful resources so that it can
• A democratic leader favours decision making by the convert them into output that the environment
group. This improves the attitude of the employees desires.
towards their jobs and the organisation thereby 4. It helps in coping with rapid changes in an
increasing their morale. increasingly dynamic environment.
• Using this style is of mutual benefit – it allows them 5. It helps in assisting in planning and policy
(subordinates) to become part of the team and helps formulation.
leaders (seniors) to make better decisions. 6. It helps in improving performance by continuously
12. Financial market plays an important role in the monitoring the environment and adopting suitable
allocation of scarce resources in an economy by practices.
performing many important functions' Explain (If an examinee has given only the headings, ½
any three such functions. 3 mark for each heading should be awarded)
Ans. Financial market plays an important role in the * 15. Explain the following rights of a consumer as
allocation of scarce resources in an economy by provided under Consumers Protection Act, 1986:
performing the following functions:  (Any three) (a) Right to be informed; and
(i) Mobilisation of savings and channelising them into (b) Right to seek redressal. 4
most productive use. 16. Samir Gupta started a telecommunication
(ii) Facilitating price determination/ discovery. company, ' Donira Ltd.' to manufacture economical
(iii) Providing liquidity to financial assets. mobile phones for the Indian rural market with
(iv) Reducing the cost of transactions. 15 employees. The company did very well in
(If an examinee has not given the headings as its initial years. As the product was good and
above but has given the correct explanation, full marketed well, the demand of its products went
credit be given) up. To increase production, the company decided
to recruit additional employees. Samir Gupta, who
13. Neeraj, a sales representative of Omida Ltd' has
was earlier taking all the decisions for the company
changed seven jobs in the last one year. He is a
had to selectively disperse the authority. He
hard working person but is not able to finalise
believed that subordinates are competent, capable
deals with the customer due to his inadequate
and resourceful and can assume responsibility
vocabulary and omission of needed words.
for effective implementation of their decisions.
Sometimes he uses wrong words because of which
This paid off and the company was not only able
intended meaning is not conveyed. All this created
to increase its production but also expanded its
a mis-understanding between him and his clients.
product range.
(a) Identify the communication barrier discussed
(a) Identify the concept used by Samir Gupta through
above.
which he was able to steer his company to greater
(b) State the category of this communication barrier. heights.
(c) Explain any other communication barrier of the (b) Also, explain any three points of importance of
same category. 3 this concept. 4
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 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

Ans. (a) Decentralisation. (a) Identify the principle of management applied for
(b) Importance of decentralisation:  (Any three) the success of the programme.
(i) Develops initiative among subordinates. (b) State any two features of management highlighted
(ii) Develops managerial talent for the future. in the above para.
(iii) Quick decision making. (c) Identify any two values which 'Aapka Vidyalaya'
communicated to the society. 4
(iv) Relief to top management.
Ans. (a) Principle of management - Espirit de corps.
(v) Facilitates growth.
(b) Features of management:  (Any two)
(vi) Better control.
(i) Management is Pervasive
(if an examinee has not given the headings as
"...he asked his father to apply the same principle in his
above but has given the correct explanation, full
business'.
credit should be given)
Management is pervasive as it can be applied to all
(If the concept is wrongly identified but the points types/ levels of organisations.
of importance are correct. Due credit be given)
(ii) Management is a Group Activity
17. The workers of 'Vyam Ltd.' are unable to work
'There was a spirit of unity and harmony and all members
on new and hi-tech machines imported by
supported each other.
the company to fulfill the increased demand.
Management is a group activity because it requires
Therefore, the workers are seeking extra
team work and/or coordination of individual
guidance from the supervisor. The supervisor is
efforts.
overburdened with the frequent calls of workers.
(iii) Management is Goal Oriented
Suggest how the supervisor, by increasing the
skills and knowledge of workers, can make them "....the programme was systematically planned and
handle their work independently? executed'.
Management is goal oriented as it unites the
Also state any three benefits that the workers will
efforts of different individuals towards achieving
derive by the decision of the supervisor. 4
organisational goals.
Ans. Training of employees/ Vestibule training/ On the
(iv) Management is Multi- Dimensional
job training.
‘...programme was systematically planned and
Benefits the workers will derive by the decision of
executed'.
the supervisor: (Any three)
OR
(a) It helps in promotion and career growth due to
‘There was a spirit of unity and harmony and all
improved skills and knowledge.
members supported each other’.
(b) It helps them to earn more due to improved
Management is multi- dimensional as it involves
performance. management of work, people and operations.
(c) It reduces accidents as the employees are more (v) Management is Intangible
efficient to handle machines.
'With mutual trust and belongingness....'.
(d) It increases the morale of the employees as the
OR
employees are more satisfied.
'There was a spirit of unity and harmony and all
(If an examinee has given only the heading, ½ members supported each other'.
mark for each heading should be awarded)
Management is intangible as it cannot be seen but
18. 'Aapka Vidyalaya' believes in holistic its presence can be felt in the way the organisation
development of students and encourages team functions.
building through a mix of curricular, co-curricular (If an Examinee has Identified the Feature of
and sports activities. On its founders day a stage Management Correctly, Full Credit be given for
performance had to be put up. A committee of Either Quoting the line or giving the Statement.)
ten prefects was constituted to plan different (c) Values being communicated to the society:
aspects of the 9 function. They all decided to use
 (Any two)
recycled paper for decoration. There was a spirit
(i) Concern for the environment.
of unity and harmony and all members supported
each other. With mutual trust and belongingness, (ii) Holistic development of children.
the programme was systematically planned and (iii) Teamwork
executed. Kartik, one of the prefects realised that  (or any other correct value)
unknowingly the group had applied one of the * 19. 'Ganesh Steel Ltd.' is a large and credit-worthy
principles of management while planning and company manufacturing steel for the Indian
executing the programme. He was so inspired market. It now wants to cater to the Asian market
by the success of the function that he asked his and decides to invest in new hi-tech machines.
father to apply the same principle in his business. Since the investment is large, it requires long-term
His father replied that he was already using this finance. It decides to raise funds by issuing equity
principle. shares.

* Out of Syllabus
SOLVED PAPER - 2015 (BUSINESS STUDIES)

The issue of equity shares involves huge floatation (iii) Features of motivation: (Any three)
cost. To meet the expenses of floatation cost the (a) It is an internal feeling.
company decides to tap the money market. 4 (b) It produces goal directed behaviour.
(a) Name and explain the money-market instrument (c) It can be positive or negative.
the company can use for the above purpose. (d) It is a complex process.
(b) What is the duration for which the company can (If an examinee has identified the element in part
get funds through this instrument? (b) as non financial incentive, full credit is to be
(c) State any other purpose for which this instrument given)
can be used. 22. A company was manufacturing 'LED bulbs' which
20. State any five features of 'Planning'. 5 were in great demand. It was found that the
Ans. Features of planning:  (Any five) target of producing 300 bulbs a day was not met
(i) It focuses on achieving organisational objectives. by the employees. On analysis, it was found that
(ii) It is the primary function of management as it the workers were not at fault. Due to electricity
lays down the basis for all other functions of failure and shortage of workers, the company was
management. not able to achieve the set targets and alternative
arrangements were needed. To meet the increased
(iii) It is pervasive as it is required in all organisations, at
demand, the company assessed that approximately
all levels and in all departments.
88 additional workers were required out of which
(iv) It is continuous because a plan is framed, 8 would work as heads of different departments
implemented and is followed by another plan. and 10 would work as subordinates under
(v) It is futuristic as it involves looking ahead and each head. The required qualifications and job
preparing for the future. specifications were also enlisted. It was also
(vi) It involves decision making as it involves a choice decided that necessary relaxation should be given
from among the various alternative courses of to encourage women, persons from backward and
action. rural areas and persons with special abilities to
(vii) It is a mental exercise as it is intellectual activity of assume responsible positions in the organisation.
thinking rather than doing. All efforts were made to match the ability of the
(viii) It provides the basis for controlling by providing applicants with the nature of work. 5
standards. (a) Identify the functions of management discussed
(If an examinee has given only the headings, ½ above.
mark for each heading should be awarded) (b) State the two steps in the process of each function
21. Smita had been working as an assistant manager discussed in the above para.
with 'Johnson Enterprises' for the last ten years. (c) List any two values which the company wants to
She was very popular amongst her colleagues communicate to the society.
because of her commitment and dedication Ans. (a) Staffing and controlling.
towards the work. When the manager senior to her (b) Steps in Staffing
retired, all her colleagues thought that now Smita (i) Estimating manpower requirements which
would be promoted. But to everyone's surprise involves knowing how many persons are needed
the vacant post was filled by an outsider, Mrs. and of what type.
Rita. Smita felt demoralised and her performance 'To meet the increased demand, the company assessed that
started declining. She would abstain herself often .... subordinates under each head'.
and could not meet her targets. (ii) Recruitment which involves searching for
Mrs. Rita was a good leader, who would not only prospective employees and stimulating them to
instruct her subordinates but would also guide and apply for jobs in the organisation.
inspire them. She noticed Smita's behaviour and (If an Examinee has only Identified ‘Estimating
felt that her performance could be improved. She Manpower Requirements‘ as a step in the staffing
started involving Smita in decision making-issues process, full credit is to be given)
related to the organisation and made her a part of Steps in controlling: (Any two)
high level joint-management committee. Smita (i) Comparison of actual performance with the
was now punctual in office and her performance standards which would reveal the deviation
started improving. 5 between actual and desired results.
(i) Identify the function of management being 'It was found that the target of producing 300 bulbs a day
performed by Rita. was not met by the employees'.
(ii) Name the element of the above function of (ii) Analysing deviations which would help to find out
management which helped Rita to improve the causes of deviation.
Smita's behaviour. On analysis, it was found that the workers were not at
(iii) State any three features of the element identified fault....alternative ma arrangements were needed.
in (ii) above. (iii) Taking corrective action, if required.
Ans. (i) Directing. To meet the increased demand, the company assessed that
(ii) Motivation. approximately....as subordinates under each head.
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

(If an examinee has given the steps of the process opportunities and good remuneration practices.
not discussed above, 1/2 mark may be deducted) It has many shareholders who prefer to receive a
(c) Values which the company wants to communicate regular income from their investments.
to the society: (Any two) It has taken a loan of ` 40 lakhs from IDBI and is
(i) Using environment friendly methods of production. bound by certain restrictions on the payment of
(ii) Women empowerment. dividend according to the terms of loan agreement.
(iii) Upliftment of underprivileged sections of the The above discussion about the company leads
society. to various factors which decide how much of the
(or any other correct value) profits should be retained and how much has to be
distributed by the company.
23. With the help of a diagram explain 'Functional
Foremanship' as a technique of scientific Quoting the lines from the above discussion
management.6 identify and explain any four such factors. 6
Ans.  Ans. Factors affecting dividend decision:  (Any four)
(i) Stability of earnings
'It has been consistently earning good profits for
many years'.
Stability of earnings affects dividend decision as a
company having stable earnings is in a position to
declare higher dividends.
(ii) Cash Flow position
"There is availability of enough cash in the
company'.
Functional Foremanship (Any three points) A good cash flow position is necessary for
• Functional foremanship is a technique which aims declaration of dividend.
to improve the quality of supervision at shop floor. (iii) Growth Prospects
• Taylor identified a list of qualities of a good foreman
'Good prospects for growth in the future'.
or a supervisor. Since all the qualities could not be
If a company has good growth opportunities, it
found in a single person, Taylor proposed eight
pays out less dividend.
specialists.
• In this technique, planning is separated from (iv) Shareholders' preference
execution. 'It has many shareholders who prefer to receive
• It is an extension of the principle of division of work regular income from their investments'.
and specilaization. Shareholder's preference is kept in mind by the
• Taylor suggested four foremen for planning and management before declaring dividends.
four foremen for execution. (v) Contractual constraints
• The four foremen for planning were route clerk, 'It has taken a loan of ` 40 Lakhs from IDBI and ....
instruction card clerk, time and cost clerk and agreement'
disciplinarian and four foremen for execution were While taking dividend decision, companies keep in
gang boss, speed boss, repair boss and inspector. mind the restrictions imposed by the lenders in the
• The four foremen for planning would draft loan agreement.
instructions for the workers, specify the route of 25. 'Hayaram' is a famous chain selling a large variety
production, prepare time and cost sheet and ensure of products in the Indian market. Their products
discipline respectively. include chips, biscuits, sweets and squashes. It
• The four foremen for execution were responsible charges a comparatively higher price than its
for timely and accurate completion of the job, competitors as it sells quality products. Besides,
keeping machines and tools ready for operation by it offers regular discounts to its customers and
the workers, ensuring proper working conditions easy credit terms to its retailers. It has five of its
of machines and tools and checking the quality of own retail shops. It also sells its products through
work. various grocery stores so that the products are
(If an examinee has made an incomplete diagram made available to customers at the right place, in
but has named all foremen in the explanation, one the right quantity and at the right time. It regularly
mark may be given for the diagram) uses different communication tools to increase its
24. 'Sarah Ltd.' is a company manufacturing cotton sales.
yarn. It has been consistently earning good profits The above para describes the combination of
for many years. This year too, it has been able to variables used by Hayaram to prepare its market
generate enough profits. There is availability of offering. Identify and explain the variables. 6
enough cash in the company and good prospects for Ans. The combination of variables used by Hayaram to
growth in future. It is a well managed organisation prepare its market offering are:
and believes in quality, equal employment
SOLVED PAPER - 2015 (BUSINESS STUDIES)

(i) PRODUCT the activities involved in transferring ownership

It refers to the combination of various aspects and physical possession of the product to the
relating to the product or service to be offered for consumers.
sale. It relates to decisions regarding planning, It consists of physical distribution (i.e., activities
designing and developing the right type of involving the movement of products or services
products and services for the consumers. It includes from producers to consumers as well as channels of
branding, labelling and packaging. distribution i.e.,the route through which the goods
'Their products include chips, biscuits, sweets and move form the producer to the consumer.
squashes'.
'It has five of its own retail shops'.
(ii) PRICE
OR
Price mix involves different Pricing methods,
Pricing strategies, Pricing policies and Price 'It also sells its products through various grocery
Changes. It involves decisions regarding the basic stores....right time'.
price of the product, discount, allowances, terms of (iv) PROMOTION
payment,etc. It consists of all the activities aimed at persuading
'It charges a comparatively higher price than its customers to buy the product through advertising,
competitors'. personal selling, sales promotion and publicity.
OR
'It regularly uses different communication tools to
'It offers regular discounts to its customers and easy increase its sales'.
credit terms to its retailers'.
(Full credit be given if an Examinee has not quoted
(iii) PLACE/PHYSICAL DISTRIBUTION
the lines from the above para but has given the
It includes activities that make firm's products correct explanation.)
available to the target customers. It consists of all

Delhi Set II Code No. 2/1/1

Note : Except for the following questions, all the 14. What is meant by principles of management? State
remaining questions have been asked in any three points of their importance. 4
previous sets. Ans. Principles of management are broad and general
7. What is meant by 'co-ordination' in management? guidelines for managerial decision making and
1 behaviour.
Ans. Co-ordination is the process by which a manager
Importance of principles of management :(any
synchronises the activities of different departments
towards the achievement of a common goal. three):
(or any other correct definition) (i) They provide the managers with useful insights
8. Define Planning'. 1 into reality.
Ans. Planning is the process of setting objectives for a (ii) They help in optimum utilisation of resources as the
given time period, formulating various courses of wastages associated with trial and error approach
action to achieve them and then selecting the best can be overcome.
possible alternative from among the various courses
of action available. (iii) They help in effective administration as the
(or any other correct definition) decisions are free from personal bias.
9. What is meant by divisional structure' of an (iv) They help in taking scientific decisions which are
organisation? State its any two advantages. 3 based on objective assessment of the situation.
Ans. Divisional structure is an organisation structure (v) They help in meeting changing environment
comprising of separate business units or divisions
requirements as they can be modified according to
created on the basis of different products,
geographical area, customer groups,etc. the needs of the environment.
Advantages of divisional structure: (Any two) (vi) They help in fulfilling social responsibility by
(i) Product specialisation helps in the development of responding to the demands of the public.
varied skills. (vii) They are used as a basis for management training,
(ii) It helps in the fixation of responsibility as divisional education and research by providing the basic
heads are accountable for profits, revenues and groundwork for the development of management
costs related to their departments.
as a discipline.
(iii) It promotes flexibility, initiative and faster decision
making as each division is an autonomous unit. (If an examinee has given only the heading, ½
(iv) It facilitates expansion and growth as new divisions mark for each heading should be awarded)
can be added without cap interrupting the existing * 15. Explain the following rights of a consumer as
operations. provided under Consumers Protection Act, 1986:
(If an examinee has given only the heading, ½ (a) Right to Safety; and
mark for each heading)
(b) Right to be Heard. 4
* Out of Syllabus
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

20. State any five points which highlight the efficient workers. It rewards the efficient workers
importance of delegation of authority. 5 and motivates the less efficient ones to improve
Ans. Importance of delegation of authority: (Any five) their efficiency.
(i) It helps in effective management as the managers • In this plan, there are two piece rates - one for those
get more time to concentrate on important matters. workers who produce the standard output or more,
(ii) It helps in development of employees as the and the other for those who produce less than the
employees get more opportunities to utilise their standard output.
talent. • Example: Standard output (per worker per day) =
(iii) It helps to motivate employees as the employees feel 10 units.
encouraged and try to improve their performance Wage rate I =` 2 per unit (for output<<10 units)
further. Wage rate II ` 3 per unit (for output>=10 units)
(iv) It facilitates growth by providing a ready workforce
Particulars Worker A Worker B
to take up leading positions in new ventures.
(v) It establishes a management hierarchy through Actual output 9 units 11 units
clear superior subordinate relationships. Total wages (in `) 9 × ` 2 = ` 18 11 × ` 3 = ` 33
(vi) It helps in better co-ordination by avoiding
overlapping of duties. Difference in units produced = 2
(If an examinee has given only the heading, ½ Difference in wages = ` 15
mark for each heading should be awarded) (ii) Motion Study
23. Explain the following techniques of scientific • It is a technique to study the movements which are
management: undertaken while doing a well defined job.
(i) Differential piece wage system; and • The movement could be productive, incidental and
(ii) Motion Study. 6 unproductive.
Ans. (i) Differential Piece Wage System • It seeks to eliminate unnecessary and wasteful
movements so that it takes less time to complete a
• Differential Piece Wage System is a technique
job efficiently.
which differentiates between efficient and less

Delhi Set III Code No. 2/1/1

Note : Except for the following questions, all the (iii) The principles of management are derived by
remaining questions have been asked in observation, experimentation as well as personal
previous sets. experience of managers.
8. Define formal organisation'. 1 (iv) They are not rigid but are flexible and can be
Ans. Formal organisation refers to the organisation modified by the manager when the situation so
structure which is designed by the management to demands.
accomplish a particular task. (v) Management principles aim at influencing
 (or any other correct meaning) behaviour of human beings.
9. State any three limitations of divisional structure' (vi) The principles of management establish cause
of an organisation. 3 and effect relationship, so that they can be used in
Ans. Limitations of divisional structure of an similar situations in a large number of cases.
organisation:  (Any three) (vii) The application of principles of management is
(i) Conflicts may arise among different divisions with contingent or dependent upon the prevailing
respect to allocation of funds. situation at a particular point of time.
(ii) It may increase the cost since there may be a (If an examinee has given only the heading, ½
duplication of activities. mark for each heading should be awarded)
(iii) Divisional heads may misuse the authority ignoring * 15. Explain the following rights of a consumer as
organisational interests. provided under Consumers Protection Act, 1986:
(If an examinee has given only the heading, ½ (a) Right to choose; and
mark for each heading should be awarded) (b) Right to consumer education. 4
14. State any four features of Principles of 20. State any five limitations of 'Planning' function of
Management'.4 management.5
Ans. Features of principles of management:  (Any four) Ans. Limitations of planning:  (any five)
(i) The principles of management apply to all types of (i) Planning leads to rigidity because once a well
organisations, at all levels and at all times. defined plan is drawn, the managers may not be in
(ii) The principles are guidelines to action but do not a position to change it.
provide readymade, straitjacket solutions to all (ii) Planning may not work in a dynamic environment
managerial problems. as it may not foresee everything.
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SOLVED PAPER - 2015 (BUSINESS STUDIES)

(iii) Planning reduces creativity since people tend to • Time study is a technique used to determine the
think on the same lines as others. standard time taken by a worker of reasonable skill
(iv) Planning involves huge costs in terms of time and and efficiency to perform a well defined job.
money. • It helps in deciding the number of workers to be
(v) Planning is time consuming and sometimes not employed, frame suitable incentive schemes and
much time is left for its implementation. determine labour costs.
(vi) Planning does not guarantee success unless it is • The method of time study will depend upon
translated into action. volume and frequency of the task, the cycle time of
(If an examinee has given only the heading, ½ the operation and time measurement costs.
mark for each heading should be awarded) (ii) Simplification of work
25. Explain the following techniques of scientific • It aims at eliminating superfluous varieties, sizes
management: and dimensions.
(i) Time Study; and • It results in saving of cost of labour, machines and
(ii) Simplification of work. 6 tools.
Ans. (i) Time Study • It leads to reduced inventories, fuller utilization of
equipment and increased turnover.

Outside Delhi Set I Code No. 2/1/1

1. What is meant by ‘Business Environment’? 1 Ans. Low, as it is a service industry, which usually do not
Ans. Business environment means the sum total of all have to maintain inventory.
individuals, institutions and other forces that are 7. ‘Maruti Vega Ltd.’ entered into the market with
outside the control of a business enterprise but that coloured television and have now introduced
may affect its performance. products like audio systems, air-conditioners
2. Explain, how management helps in the washing machines, etc. The company is not only
development of society. 1 offering the products but also handling complaints
Ans. Management helps in the development of society and offering after-sales services.
by: (Any two) Identify the element of marketing-mix discussed
l providing good quality products and services, here.1
l creating employment Ans. Product/Product mix.
l adopting new technology and
8. Himanshu purchased a new car from ‘Galaxy
l leading the path towards growth and development.
Motors’ for ` 25 lakhs. He was offered free
3. Give the meaning of ‘Objectives’ as a type of plan.
insurance for the first year and three free servicing
1
to be availed after the car had covered 5,000 km,
Ans. Objectives are the ends which the management
seeks to achieve within a given time period. 10,000 km and 15,000 km respectively. When
 (or any other correct meaning) Himanshu took the car for the first free servicing,
4. ‘Himalaya Ltd.’, is engaged in manufacturing of he was told that the car was not new and first
washing machines. The target of the organisation service had already been availed on this car. He
is to manufacture 500 washing machines a felt cheated and filed a complaint in the State
day. There is an occupational specialisation in Commission. Being not satisfied with the decision
the organisation which promotes efficiency of of the State Commission, after two months he
employees. There is no duplication of efforts in decided to file an appeal against it.
such type of organisation structure. Can Himanshu appeal against the decision of the
Identify the type of organisation structure State Commission? Give reason in support of your
described above. 1 answer.
Ans. Functional structure. Ans. No, Himanshu cannot appeal now as the appeal
5. How does ‘cost of equity’ affect the choice of has to be filed within 30 days of passing of the order
capital structure of a company ? Explain. 1 by the State Commission.
Ans. Use of higher debt increases the cost of equity as 9. What is meant by ‘Formal Organisation’ ? State its
the financial risk faced by the equity shareholders
any two advantages. 3
increases; debt can therefore be used only upto a
level. Ans. Formal organisation refers to the organisation
6. ‘Bharat Express’ specialises in Courier Services. structure which is designed by the management to
Its ‘wide range of express package and parcel accomplish its objectives.
services’ help business firms to make sure that the Advantages: (Any two)
goods are made available to the customers at the (a) It is easier to fix responsibility since mutual
right place and at the right time. relationships are clearly defined.
State with reason, whether the working capital (b) It avoids duplication of effort since there is no
requirements of ‘Bharat Express’ will be high or ambiguity in the role that each member has to play.
low.1
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

(c) It maintains unity of command through an 12. ‘The Stock Exchange performs many vital
established chain of command. functions in today’s commercial world.’ Explain
(d) It leads to accomplishment of goals by providing a any three such functions. 3
framework for the operations to be performed. Ans. Vital functions performed by the Stock Exchange in
(e) It provides stability to the organisation because today’s commercial world are: (Any three)
there are specific rules to guide behaviour of (i) Provides liquidity and marketability to existing
employees. securities.
(If an examinee has given only the headings, ½ (ii) Helps in determining the price of securities.
mark for each heading should be awarded) (iii) Ensures safety of transactions.
* 10. How do the ‘Company-related factors’ affect the (iv) Contributes to economic growth.
choice of channels of distribution ? Explain. 3 (v) Helps in spreading equity cult.
11. ‘A.S. Ltd.’ is a large company engaged in assembly (vi) Provides scope for speculation.
of air-conditioners. Recently the company had (if an examinee has not given the headings
conducted the ‘Time’ and ‘Motion’ study and as above but has given the correct
concluded that on an average a worker can explanation, full credit should be given)
assemble ten air-conditioners in a day. The target
13. Jaideep recently joined as the Managing Director
volume of the company in a day is assembling of
of ‘Tivori Ltd.’, an apparel designing company.
1,000 units of air-conditioners. The company is
He observed that the company had a number of
providing attractive allowances to reduce labour
experienced fashion designers on its payroll. They
turnover and absenteeism. All the workers are
regularly offered useful suggestions which were
happy. Even then the assembly of air-conditioners
neither appreciated nor rewarded by the company.
per day is 800 units only. To find out the reason
Instead the company outsourced its services to
the company compared actual performance of each
some renowned fashion designers and paid them
worker and observed through C.C.T.V. that some
a good compensation for their services. Because of
of the workers were busy in gossiping.
this the employees felt disheartened and stopped
(a) Identify the function of management discussed giving useful suggestions. 3
above.
(a) Identify the communication barrier discussed
(b) State those steps in the process of the function above.
identified which are discussed in the above
(b) State the category of this communication barrier.
paragraph. 3
(c) Explain any other communication barrier of the
Ans. (a) Controlling.
same category.
(b) Steps discussed in the above paragraph are:
Ans. (a) Organisational policy
(i) Setting performance standards
(b) Organisational barrier which arises from
‘Recently the company had conducted the ‘Time’ organisational structure, authority relationships,
…. can assemble ten air-conditioners in a day’. rules and regulations etc.
OR (c) Other communication barriers of the same category
‘The target volume of the company in a day is are: (Any one)
assembling 1,000 units of air-conditioners’. (i) Rules and regulations
Setting performance standards which are the (ii) Status
criteria against which the actual performance
(iii) Complexity in organisational structure.
would be measured.
(iv) Organisational facilities.
(ii) Measurement of actual performance
(If an examinee has not given the headings,
‘Even then the assembly of air-conditioners per day
no marks should be deducted)
is 800 units only’.
14. What is meant by ‘Management’ ? State any three
Measurement of actual performance with the
objectives of management. 4
standards in an objective and reliable manner.
Ans. Management is the process of getting things done
(iii) Comparing actual performance with the standards
with the aim of achieving goals effectively and
‘… the company compared actual performance of
efficiently. (Or any other correct meaning)
each worker’ Comparing actual performance with
the standards to find out the deviation, if any. Objectives of management:
(iv) Analysing deviations observed through C.C.T.V. (i) Organisational objectives which include survival,
that some of the workers were busy in gossiping. profit and growth.
Analysing deviations for their causes. (ii) Social objectives which involve creation of benefit
for the society.
(If an examinee has given the steps of the process
not discussed above, ½ mark may be deducted) (iii) Personal objectives which aim to satisfy the needs
of the employees working in the organisation.
(Full credit be given for quoting the line or giving
the statement) (If an examinee has given only the heading, ½
mark for each heading should be awarded)
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SOLVED PAPER - 2015 (BUSINESS STUDIES)

15. Explain any four points of importance of ‘consumer (iii) Quick decision making: In a decentralised
protection’ from the point of view of business. 4 organisation since decisions are taken at levels
Ans. Importance of Consumer Protection from the point which are nearest to the points of action and
of view of business: there is no requirement for approval from
(i) Long term interest of the business: In the many levels, the process is much faster.
competitive environment, the businessman can (iv) Relief to the top management: Decentralisation
win and capture a big share in the market only leaves the top management with more time
through consumer satisfaction. Those who ignore which they can devote to important policy
the interest and satisfaction of consumers may loose decisions rather than occupying their time with
their goodwill and clients. both policy as well as operational decisions.
(ii) Business uses society’s resources : As a business (v) Facilitates growth: With each department
uses social resources, it is bound to serve the society doing its best in a bid to outdo the other,
by using its resources through adoption of fair trade the productivity levels increase and the
practices which ensures consumer protection. organisation is able to generate more returns
which can be used for expansion purposes.
(iii) Social responsibility: Just like other stakeholders,
(vi) Better control: Decentralisation makes it
towards consumers also, businessmen have got
possible to evaluate performance at each level
social responsibility to provide quality goods at
and the departments can be individually held
reasonable prices. Consumer protection guides
accountable for their results. (Any three)
businessmen to fulfil social responsibility towards
consumers. (if an examinee has not given the headings as
above but has given the correct explanation,
(iv) Government Intervention: If businessmen want
full credit should be given)
to avoid intervention of Government, then they
(If the concept is wrongly identified but the points
should not involve in unfair trade practices and
of importance are correct, Due credit be given)
exploitative practices towards consumers.
17. The workers of ‘Gargya Ltd.’ are unable to work
(v) Moral justification: Business ethics advocates
on new computerised machines imported by the
adoption of moral principles in conducting business
company to fulfil the increased demand. Therefore,
affairs. A business is required to adopt consumer
the workers are seeking extra guidance from the
protection as its moral duty. (Any four) supervisor and the supervisor is overburdened
16. Neeraj Gupta started a company ‘YoYo Ltd.’ with with the frequent calls of workers.
ten employees, to assemble economical computers Suggest how the supervisor, by increasing the
for the Indian rural market. The company did skills and knowledge of workers, can make them
very well in its initial years. As the product was handle their work independently.
good and marketed well, the demand went up. Also state any three benefits that the workers will
To increase production the company decided to derive by the decision of the supervisor. 4
recruit additional employees. Neeraj Gupta, who
Ans. Training of employees/ Vestibule training/ On the
was earlier taking all decisions for the company,
job training.
had to selectively disperse the authority. He
Benefits the workers will derive by the decision of
believed that people are competent, capable and
the supervisor: (Any three)
resourceful and can assume responsibility for
effective implementation of their decisions. This (a) It helps in promotion and career growth due to
paid off and the company was not only able to improved skills and knowledge.
increase its production but also expanded its (b) It helps them to earn more due to improved
product range with different features. performance.
(a) Identify the concept used by Neeraj Gupta through (c) It reduces accidents as the employees are more
which he was able to steer his company to greater efficient to handle machines.
heights. (d) It increases the morale of the employees as the
(b) Also explain any three points of importance of this employees are more satisfied.
concept.4 (If an examinee has given only the heading, ½
mark for each heading should be awarded)
Ans. (a) The concepts is decentralisation.
18. Beni, after completing her MBA, took up a job
Importance of Decentralisation:
with a multinational company named ‘Fortio’.
(i) Develops initiative among subordinate: The company was paying good salary and perks
Decentralisation helps to promote self-reliance to its employees. The wages were within the
and confidence amongst the subordinates. paying capacity of the company that provided the
(ii) Develops managerial talent for the future: employees a reasonable standard of living. The
Formal training plays an important part in company also had a good work-culture and the
equipping subordinates with skills that help behaviour of superiors was very good towards
them rise in the organisation but equally their subordinates. Beni was very happy in this
important is the experience gained by handling organisation, but due to long working hours she did
assignments independently. not have time to cook her meal. She had to depend
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

upon outside food, which was deteriorating her (ii) Departmentalisation/ departmentation when ac-
health. tivities of a similar nature are grouped together.
She observed that this problem was faced by many (iii) Assignment of duties to job positions.
of her colleagues, not only in her company but also (iv) Establishing reporting relationships so that each
in many other companies. This was because of the individual knows who he has to take orders from
increase in the number of working women and non- and to whom he is accountable.
availability of hygienic home-cooked food. She (If an examinee has given only the headings, ½
identified this as a great opportunity and decided mark for each heading should be awarded)
to give up her job to supply packaged home- 21. Anjali had been working with ‘Tata Enterprises’
cooked food to office goers at a reasonable price. for the last ten years. She was famous for her
At the end of the day she was also distributing the dedication towards the work. When the Manager
left-over food in the nearby night-shelters. senior to her retired, all her colleagues thought that
(a) State the dimension of business environment now Anjali would be promoted. But to everyone’s
being discussed above. surprise the vacant post was filled by an outsider
(b) State the principle of management being followed ‘Miss Monika’. Anjali felt demoralised and her
by ‘Fortio’. 4 performance started declining. She would absent
Ans. (a) Social environment which includes social forces herself often and could not meet her targets.
like customs and traditions, values, social trends Miss Monika was a good leader who would not
etc. only instruct her subordinates, but also guide and
‘This was because of the increase in the number of inspire them. She noticed Anjali’s behaviour and
working women and non-availability of hygienic felt that her performance could be improved. She
home-cooked food’. started involving Anjali in decision-making issues
(b) Remuneration of employees states that the overall related to the organisation and made her a part of
pay and compensation should be fair to both a high-level joint management committee. Anjali
employees and the organisation. was now punctual to office and her performance
‘The company was paying good salary and perks to started improving.
its employees. The wages were within the paying (a) Identify the function of management being
capacity … standard of living’. performed by Monika.
* 19. ‘Mission Coach Ltd.’ is a large and creditworthy (b) Name the element of the above function of
company manufacturing coaches for Indian management which helped Monika to improve
Railways. It now wants to export these coaches Anjali’s behaviour.
to other countries and decides to invest in new (c) State any three features of the element identified
hi-tech machines. Since the investment is large, in (b) above. 5
it requires long-term finance. It decides to raise Ans. (a) Directing.
funds by issuing equity shares. The issue of equity (b) Motivation.
shares involves huge floatation cost. To meet the (c) Features of motivation: (Any three)
expenses of floatation cost, the company decides
(i) It is an internal feeling.
to tap the money market.
(ii) It produces goal directed behaviour.
(a) Name and explain the money-market instrument
the company can use for the above purpose. (iii) It can be positive or negative.
(b) What is the duration for which the company can (iv) It is a complex process.
get funds through this instrument ? (If an examinee has identified the
(c) State any other purpose for which this instrument element in part (b) as non financial
can be used. 4 incentive, full credit is to be given)
20. Give the meaning of ‘organising’. State the steps 22. Mohit Gupta is working with ‘Yellow Security
in the process of organising. 5 Services Ltd.’ He is also recruiting security guards
Ans. Organising is the process of defining and grouping for the company. The company provide security
the activities of the enterprise and establishing services in Delhi and Noida at short notice to
authority relationships among them. various companies. The guards are recruited
OR on temporary basis. The guards provided by
this company are known for their honesty and
Organising is the process of identifying and
punctuality. Mohit Gupta is well known in his
grouping the work to be performed, defining
village for providing employment to unskilled
and delegating responsibility and authority and
people.
establishing relationships for the purpose of
accomplishing objectives. (a) Name the source of recruitment used by ‘Yellow
Security Services Ltd.’
Steps in the process of organising:
(b) State any one disadvantage of this source of
(i) Identifying and dividing the work into manageable
recruitment.5
activities so that duplication can be avoided.

* Out of Syllabus
SOLVED PAPER - 2015 (BUSINESS STUDIES)

(c) Identify the need of ‘Security Guards’ which is Ans. Factors affecting dividend decision: (Any four)
being fulfilled by the company as per Maslow’s (i) Stability of earnings: ‘It has been consistently
need hierarchy. earning good profits for many years’.
Ans. (a) External source of recruitment/ Labour Stability of earnings affects dividend decision as a
Contractor.
company having stable earnings is in a position to
(b) Disadvantages of external source of recruitment:
declare higher dividends.
 (Any one)
(ii) Cash Flow position: ‘There is availability of enough
(i) It may lead to dissatisfaction among existing
cash in the company’.
employees as they may feel that their chances
of promotion are reduced. A good cash flow position is necessary for
(ii) It is a lengthy process as the vacancies have to declaration of dividend.
be notified and applications received before (iii) Growth Prospects: ‘Good prospects for growth in
selection. the future’.
(iii) It is a costly process as a lot of money is spent on If a company has good growth opportunities, it
advertisement and processing of applications. pays out less dividend.
(If an examinee has given only the heading, ½ (iv) Shareholders’ preference: It has many shareholders
mark for each heading should be awarded) who prefer to receive regular income from their
(c) Basic physiological needs. investments’.
(or any other correct value) Shareholders' preference is kept in mind by the
23. Explain the following principles of management: management before declaring dividends.
(a) Science, not rule-of-thumb. (v) Contractual constraints: ‘It has taken a loan of ` 50
(b) Discipline. 6 Lakhs from I.C.I.C.I. and agreement’
Ans. (a) Science not rule of thumb While taking dividend decision, companies keep in
l It states that there was only one best method to mind the restrictions imposed by the lenders in the
maximise efficiency. loan agreement.
l This method can be developed through scientific
25. Radhika was a student of Business Studies of Class
study and analysis of each element of a job and
XII. Her father was a farmer who grew different
should substitute ‘Rule of Thumb’.
varities of rice and was well-versed about various
l This standard method then should be followed
aspects of rice cultivation. He was also selected
throughout the organisation.
by the government for a pilot-project on rice
(b) Discipline
cultivation. As a project-work in Business Studies,
l It is the obedience to organisational rules and
she decided to study the feasibility of marketing
employment agreement which are necessary for
the working of the organisation. good quality rice at a reasonable price. Her father
l It requires good superiors at all levels, clear and fair
suggested her to use internet to gather customers’
agreement and judicious application of penalties. views and opinions. She found that there was a
l Workers and management both should honour huge demand for packaged organic rice. She knew
their commitments towards one another without that there were no pre-determined specifications
prejudice. in case of rice because of which it would be
24. ‘Abhishek Ltd.’ is manufacturing cotton clothes. difficult to achieve uniformity in the output. To
It has been consistently earning good profits for differentiate the product from its competitors, she
many years. This year too, it has been able to gave it the name of ‘Malabari Organic Rice’ and
generate enough profits. There is availability of classified it into three different varieties namely
enough cash in the company and good prospects for — Popular, Classic and Supreme, based on the
growth in future. It is a well managed oranisation quality. She felt that these names would help her
and believes in quality, equal employment in product differentiation.
opportunities and good remuneration practices.
Explain the three functions of marketing, with
It has many shareholders who prefer to receive a
reference to the above paragraph. 6
regular income from their investments.
It has taken a loan of ` 50 lakhs from I.C.I.C.I. Ans. Functions of marketing, with reference to the above
Bank and is bound by certain restrictions on the paragraph are:
payment of dividend according to the terms of the (i) Gathering and analysing market information.
loan agreement. use internet to gather customers’ views and
The above discussion about the company leads opinions.’
to various factors which decide how much of the (ii) Standardisation and Grading/ Grading.
profits should be retained and how much has to be
‘no pre-determined specifications in case of rice
distributed by the company.
because of which it would be difficult to achieve
Quoting the lines from the above discussion,
uniformity in the output.’
identify and explain any four such factors. 6
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

OR OR
‘classified it into three different varieties namely – She felt that these names would help her in product
Popular, Classic and Supreme, based on the quality’. differentiation.
(iii) Branding. (If an examinee has identifed the functions correctly
‘To differentiate the product from its competitors, and has given the explanation without quoting the
she gave it the name of ‘Malabari Organic Rice’. lines from the above para, full credit is to be given)

Outside Delhi Set II Code No. 2/1/1

Note : Except for the following questions, all the 15. Explain the concept of ‘consumer protection’ and
remaining questions have been asked in any three points of importance from the point of
previous sets. view of consumers. 4
* 7. What is meant by ‘liberalisation’? 1 Ans. Consumer protection means protection of
consumers from unscrupulous, exploitative and
8. Give the meaning of ‘Policy’ as a type of plan. 1
unfair trade practices.
Ans. Policy is a general guideline which brings
Importance of consumer protection for consumers
uniformity in decision making for achievement of
is due to:
predetermined objectives.
(a) Educate consumers to avoid consumer ignorance.
9. What is meant by ‘Informal Organisation’? State
its any two advantages. 3 (b) Protect and promote interests of unorganised
consumers.
Ans. Informal organisation is a network of personal
and social relations within the formal organisation (c) Safeguard from widespread exploitation of con-
arising spontaneously as people associate with one sumers
another.  (If an examinee has not given the headings as
Advantages of informal organisation: (Any two) above but has given the correct explanations,
full credit should be given)
(i) It leads to faster spread of information as well as a
20. What is meant by ‘Delegation’? State any four
quick feedback.
points which highlight the importance of
(ii) It fulfills the social needs of the members. delegation in an organisation. 5
(iii) It contributes towards fulfillment of organisational Ans. Delegation refers to granting of authority to
objectives by compensating for inadequacies in the subordinates to operate within prescribed limits.
formal organisation.
Importance of delegation of authority:  (Any four)
(If an examinee has given only the heading, ½
(i) It helps in effective management as the managers
mark for each heading should be awarded)
get more time to concentrate on important matters.
14. State any four features of principles of
(ii) It helps in development of employees as the
management.4
employees get more opportunities to utilise their
Ans. Features of principles of management: (Any four) talent.
(i) The principles of management apply to all types of (iii) It helps to motivate employees as the employees feel
organisations, at all levels and at all times. encouraged and try to improve their performance
(ii) The principles are guidelines to action but do not further.
provide ready made, straitjacket solutions to all (iv) It facilitates growth by providing a ready workforce
managerial problems. to take up leading positions in new ventures.
(iii) The principles of management are derived by (v) It establishes a management hierarchy through
observation, experimentation as well as personal clear superior subordinate relationships.
experience of managers. (vi) It helps in better co-ordination by avoiding
(iv) They are not rigid but are flexible and can be overlapping of duties.
modified by the manager when the situation so (If an examinee has given only the heading, ½
demands. mark for each heading should be awarded)
(v) Management principles aim at influencing 23. Explain the following principles of management:
behaviour of human beings.
(a) Scalar Chain.
(vi) The principles of management establish cause
(b) Harmony, Not Discord. 6
and effect relationship so that they can be used in
similar situations in a large number of cases. Ans. (a) Scalar Chain:
(vii) The application of principles of management is Meaning: The chain of authority and communication
contingent or dependent upon the prevailing that runs from top to bottom and is followed by
situation at a particular point of time. both the managers and the subordinates is called
scalar chain.
(If an examinee has given only the heading, ½
l This chain should not be violated in the normal
mark for each heading should be awarded)
course of formal communication.
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SOLVED PAPER - 2015 (BUSINESS STUDIES)

l In case of any emergency, a shorter route named (b) Harmony Not Discord
gang plank may be used to avoid delay in l The principle emphasises that there should be
communication. complete harmony between the management and
l It facilitates smooth flow of communication and the workers.
unity of command in the organisation. l This requires ‘Mental revolution’ on the part of
(Any two points from the above points along with both management and workers. Both management
the meaning) and the workers should transform their thinking.
(If an examinee has explained the principle with the l Management should share gains of the company
help of a diagram in addition to the meaning, full if any with the workers and workers should work
credit be given) hard and be wiling to embrace change for the good
of the company.

Outside Delhi Set III Code No. 2/1/1

Note : Except for the following questions, all the (i) From the point of view of Consumer:
remaining questions have been asked in (a) Educate consumers to avoid consumer
previous sets. ignorance.
7. Give the meaning of ‘Programme’ as a type of (b) Protect and promote interests of unorganised
plan.1 consumers.
(c) Safeguard from widespread exploitation of
Ans. Programme is a detailed statement about a project
consumers
which outlines the objectives, policies, procedures,
rules, resources required and the budget to (If an examinee has not given the headings
implement any course of action. as above but has given the correct
explanations, full credit should be given)
8. Define ‘co-ordination.’ 1
20. Give the meaning of ‘divisional structure’ of
Ans. Co-ordination is the process by which a manager
organising. State its any four advantages. 5
synchronises the activities of different departments
Ans. Divisional structure is an organisation
towards the achievement of a common goal. structure comprising of separate business units or
(or any other correct definition) divisions created on the basis of different products,
15. Explain any two points of importance of ‘consumer geographical area, customer groups etc.
protection’ from the point of view of business Advantages of divisional structure: (Any four)
and any two points from the point of view of (i) Product specialisation helps in the development of
consumers.4 varied skills.
Ans. Importance of consumer protection from the point (ii) It helps in the fixation of responsibility as divisional
of view of business: heads are accountable for profits, revenues and
(i) Long term interest of the business: In the costs related to their departments.
competitive environment, the businessman can (iii) It promotes flexibility, initiative and faster decision
win and capture a big share in the market only making as each division is an autonomous unit.
through consumer satisfaction. Those who ignore
(iv) It facilitates expansion and growth as new divisions
the interest and satisfaction of consumers may loose
can be added without interrupting the existing
their goodwill and clients.
operations.
(ii) Business uses society’s resources: As a business
(If an examinee has given only the heading, ½
uses social resources, it is bound to serve the society
mark for each heading should be awarded)
by using its resources through adoption of fair trade
practices which ensures consumer protection. 23. Explain the following principles of management:
(iii) Social responsibility: Just like other stakeholders, (a) Subordination of Individual Interest to General
towards consumers also, businessmen have got Interest.
social responsibility to provide quality goods at (b) Development of Each and Every Person to His or
reasonable prices. Consumer protection guides Her Greatest Efficiency. 6
businessmen to fulfil social responsibility towards Ans. (a) Subordination of Individual Interest to General
consumers. Interest:
(iv) Government intervention: If businessmen want l The interests of an organisation should take
to avoid intervention of Government, then they priority over the interests of any individual
should not involve in unfair trade practices and employee.
exploitative practices towards consumers. l The larger interests of the workers and
(v) Moral justification: Business ethics advocates stakeholders are more important than the
adoption of moral principles in conducting business interest of any one person.
affairs. A business is required to adopt consumer l A manager can ensure this by his/ her exemplary
protection as its moral duty. (Any two) behaviour.
 Oswaal CBSE 10 Previous years' Solved Papers, Class–12th

(b) Development of Each and Every Person to His or They should be given the required training to
Her Greatest Efficiency: increase their efficiency.
l This principle is concerned with efficiency of l Efficient employees would produce more
employees which could be built in right from the and earn more. This will ensure their greatest
process of employee selection. efficiency and prosperity for both the company
l The work assigned to employees should suit and the workers.
their capabilities.

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