CBSE Class 12 Business Studies Question Paper Solved 2019 Set H PDF

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SET-1
Series BVM/3 H$moS> Z§.
Code No. 66/3/1
amob Z§. narjmWu H$moS >H$mo CÎma-nwpñVH$m Ho$ _wI-n¥ð
Roll No. >na Adí` {bIo§ &
Candidates must write the Code on the
title page of the answer-book.
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð> 15 h¢ &

 àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE H$moS >Zå~a H$mo N>mÌ CÎma -nwpñVH$m Ho$ _wI-n¥ð> na
{bI| &
 H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >25 àíZ h¢ &
 H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, àíZ H$m H«$_m§H$ Adí` {bI| &
 Bg àíZ-nÌ H$mo n‹T>Zo Ho$ {bE 15 {_ZQ >H$m g_` {X`m J`m h¡ & àíZ-nÌ H$m {dVaU nydm©•
_| 10.15 ~Oo {H$`m OmEJm & 10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-nÌ H$mo n‹T>|Jo
Am¡a Bg Ad{Y Ho$ Xm¡amZ do CÎma-nwpñVH$m na H$moB© CÎma Zht {bI|Jo &
 Please check that this question paper contains 15 printed pages.
 Code number given on the right hand side of the question paper should be
written on the title page of the answer-book by the candidate.
 Please check that this question paper contains 25 questions.
 Please write down the Serial Number of the question before
attempting it.
 15 minute time has been allotted to read this question paper. The question
paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the
students will read the question paper only and will not write any answer on
the answer-book during this period.
ì`mdgm{`H$ AÜ``Z
BUSINESS STUDIES
{ZYm©[aV g_` : 3 KÊQ>o A{YH$V_ A§H$ : 80

Time allowed : 3 hours Maximum Marks : 80
Downloaded from www.studiestoday.com

66/3/1 1 P.T.O.
gm_mÝ` {ZX}e :
(i) Bg àíZ-nÌ _| nm±M IÊS> h¢ : A, ~, g, X VWm ` &
(ii) IÊS> A _| 1 A§H$ dmbo àíZ 1 go 8 VH$ h¢ & {OZH$m CÎma EH$ eãX AWdm EH$ dmŠ` _| hmo &
(iii) IÊS> ~ _| 3 A§H$ dmbo àíZ 9 go 13 VH$ h¢ & {OZH$m CÎma 50 – 75 eãXm§o _| hmo &
(iv) IÊS> g _| 4 A§H$ dmbo àíZ 14 go 19 VH$ h¢ & {OZH$m CÎma bJ^J 120 eãXm§o _| hmo &
(v) IÊS> X _| 5 A§H$ dmbo àíZ 20 go 22 VH$ h¢ & {OZH$m CÎma bJ^J 150 eãXm§o _| hmo &
(vi) IÊS> ` _| 6 A§H$ dmbo àíZ 23 go 25 VH$ h¢ & {OZH$m CÎma bJ^J 200 eãXm§o _| hmo &
(vii) àíZ-nÌ _| H$moB© g_J«-M`Z-{dH$ën CnbãY Zht h¡, VWm{n EH$ A§H$ dmbo 3 n«íZm| _§o, VrZ
A§H$ dmbo 2 n«íZm| _§o, Mma A§H$ dmbo 2 n«íZm| _§o, nm±M A§H$ dmbo 1 n«íZ _§o VWm N>: A§H$
dmbo 1 n«íZ _§o {dH$ën CnbãY h¢ & Eogo àíZm| _|o AmnH$mo Ho$db EH$ {dH$ën H$m hr CÎma
XoZm h¡ &
General Instructions :
(i) This question paper contains five Sections : A, B, C, D and E.
(ii) Section A contains questions 1 to 8 carrying one mark each. Answers to
these questions may be given in one word or a sentence.
(iii) Section B contains questions 9 to 13 carrying three marks each. Answers
to these questions may be given in 50 – 75 words.
(iv) Section C contains questions 14 to 19 carrying four marks each. Answers
to these questions may be given in about 120 words.
(v) Section D contains questions 20 to 22 carrying five marks each. Answers
to these questions may be given in about 150 words.
(vi) Section E contains questions 23 to 25 carrying six marks each. Answers to
these questions may be given in about 200 words.
(vii) There is no over-all-choice in the question paper, however an internal
choice has been provided in 3 questions of one mark, 2 questions of three
marks, 2 questions of four marks, 1 question of five marks and 1 question
of six marks. You have to attempt only one of the choices in such questions.

66/3/1 2
IÊS> A
SECTION A
1. "Hw$ebVm' H$mo n[a^m{fV H$s{OE & 1

AWdm
n`©dojU ñVa na à~§Y Ho$ {H$Ýht Xmo H$m`mªo H$m C„oI H$s{OE & 1
Define ‘Efficiency’.
OR
State any two functions to be performed at supervisory level of
management.
2. "àH¥${V' Ho$ AmYma na "Am¡nMm[aH$ g§JR>Z' VWm "AZm¡nMm[aH$ g§JR>Z' _| AÝVa ñnîQ>
H$s{OE & 1
AWdm
"EH$b Cn`moJr `moOZm' VWm "ñWm`r `moOZm' _| "AW©' Ho$ AmYma na AÝVa ñnîQ> H$s{OE & 1
Differentiate between ‘Formal Organisation’ and ‘Informal Organisation’
on the basis of ‘Nature’.
OR
Differentiate between ‘Single Use Plan’ and ‘Standing Plan’ on the basis
of ‘Meaning’ .
3. EH$ g§JR>Z AnZo H$_©Mm[a`m| H$s "_mZ-gå_mZ (à{VîR>m) Amdí`H$VmAm|' H$mo H¡$go g§VwîQ>
H$aVm h¡ ? CëboI H$s{OE & 1
How does an organisation satisfy ‘Esteem Needs’ of its employees ? State.
4. bmoJ gmoMVo h¢ {H$ Ho$db "CËnmX' H$m hr {dnUZ hmo gH$Vm h¡ & naÝVw BgHo$ A{V[aº$ {H$gr
Am¡a H$m {dnUZ ^r hmo gH$Vm h¡, O¡go "ñdmñÏ` n`©Q>Z Ho$ {bE Ho$ab nYm[aE' & nhMm{ZE,
`hm± {H$gH$m {dnUZ hmo ahm h¡ & 1
People think that it is the ‘Product’ only that can be marketed. But
something else can also be marketed, e.g. ‘Visit Kerala for Health
Tourism’. Identify what is being marketed here.

66/3/1 3 P.T.O.
5. {dnUZ {_l Ho$ EH$ VÎd Ho$ ê$n _| "_yë`' H$m AW© Xr{OE & 1
AWdm
"OZ gånH©$' H$m Š`m AW© h¡ ? 1
Give the meaning of ‘Price’ as an element of marketing mix.
OR
What is meant by ‘Public Relations’ ?
6. ny±Or g§aMZm Ho$ EH$ ^mJ Ho$ ê$n _| "drZg {b{_Q>oS' Ho$ nmg >< 50 bmI H$s g_Vm A§e
n±yOr VWm >< 20 bmI H$m ZrAm°Z ~¢H$ go G$U h¡ & AÀN>m bm^ A{O©V H$aZo na "drZg
{b{_Q>oS' Zo AnZo g_Vm A§eYmaH$m| H$mo bm^m§e XoZo H$m {ZU©` {H$`m naÝVw CÝh§o AmíM`©
hþAm O~ ZrAm°Z ~¢H$ Zo bm^m§e> ^wJVmZ na à{V~§Y bJm {X`m &
bm^m§e {ZU©` H$mo à^m{dV H$aZo dmbo Cg H$maH$ H$s nhMmZ H$s{OE {OgHo$ Ûmam {ZAm°Z
~¢§H$ H$mo "drZg {b{_Q>oS'> Ûmam bm^m§e ^wJVmZ na à{V~§Y bJmZo H$s AZw_{V àXmZ H$s
JB© & 1
As a part of its capital structure, ‘Venus Ltd.’ had < 50 lakhs as Equity
Share Capital and a loan of < 20 lakhs from Neon Bank. On earning a
good profit, ‘Venus Ltd.’ decided to give dividend to the equity
shareholders but were surprised when the Neon Bank imposed
restrictions on the payment of dividend.
Identify the factor affecting dividend decision that allows Neon Bank to
impose restrictions on the payment of dividend by ‘Venus Ltd.’
7. EH$ boo{Q>Z A_o[aH$Z _mH©$ Zma, O~ EH$ ñnoZ Ho$ ì`dgm`r Ho$ gmW ì`mdgm{`H$ g_Pm¡Vo
H$mo nyU© H$a ahm Wm Vmo CgZo EH$ Eogo eãX H$m Cn`moJ {H$`m {OgH$m AZwdmX ñno{Ze _|
An_mZOZH$ _mZm OmVm Wm & BgZo ñnoZ Ho$ ì`dgm`r H$mo naoemZ H$a {X`m VWm dh
g_Pm¡Vo go nrN>o hQ> J`m &
à^mdr g§àofU _| ^mfmJV éH$mdQ> H$m CëboI H$s{OE & 1
Mark Nar, a Latin American, while closing a business deal with a
businessman from Spain, used a word which was considered offensive in
Spanish when translated. This made the Spanish businessman upset and
he backed away.
State the semantic barrier to effective communication.

66/3/1 4
8. AnZr ì`mnH$ `moOZm Ho$ EH$ ^mJ Ho$ ê$n _| ‘ZraOm {b{_Q>oS>’ Zo `h {ZU©` {b`m {H$ dh
AnZo dV©_mZ OyVm| Ho$ ì`dgm` Ho$ gmW {H«$`mAm| (J{V{d{Y) H$s EH$ ZB© n§{º$ Omo‹S>oJr &
`moOZm Ho$ àH$ma H$mo nhMm{ZE & 1
As a part of its comprehensive plan ‘Neerja Ltd.’ decided to combine a
new line of activity with its existing footwear business.
Identify the type of plan.
IÊS> ~
SECTION B
9. à~§Y Ho$ {ZX©oeZ H$m`© H$s {H$Ýht VrZ {deofVmAm| H$m C„oI H$s{OE & 3
AWdm
g§àofU H$s à^mdnyU©Vm _| gwYma Ho$ {H$Ýht VrZ Cnm`m| H$m C„oI H$s{OE & 3
State any three features of directing function of management.
OR
State any three measures to improve communication effectiveness.
10. amoñQ>oS> H$m°\$s H$m°nm©oaoeZ EH$ H$m°\$s hmCg ûm¥§Ibm h¡ Omo ^maV Ho$ gmV amÁ`m| _| H$m`©erb
h¡ & amîQ´>r` ~mµOma _| à{V`mo{JVm H$m X~md hmoVo hþE ^r AnZo à^mdr g§§JR>ZmË_H$ T>m±Mo Ho$
_mÜ`_ go BgZo {dH$mg {H$`m h¡ & H$ånZr H$m EH$ H«$` VWm CËnmXZ {d^mJ, Amny{V©
ûm¥§Ibm à~§YZ VWm g§^ma-V§Ì {d^mJ, ~«mÊS> à~§YZ {d^mJ VWm {dH«$` {d^mJ h¡ & Bg
g§aMZm go {H«$`mË_H$ Hw$ebVm _| gwYma hþAm h¡, Š`m|{H$ H$_©Mmar AnZo H$m`©joÌ _| {deofk
~Z JE & CÝh| {d{eîQ> à{ejU ^r {X`m Om gH$Vm Wm Š`m§o{H$ `hm± _w»` Ho$ÝÐ {~ÝXþ gr{_V
loUr Ho$ H$m¡ebm| na Wm &
amoñQ>oS> H$m°\$s H$m°nm©oaoeZ Ho$ g§JR>ZmË_H$ T>m§Mo H$s nhMmZ H$s{OE & gmW hr Cn`w©º$ AZwÀN>oX
_| M{M©V bm^m| Ho$ A{V[aº$ Bg T>m±Mo Ho$ VrZ AÝ` bm^m| H$m C„oI ^r H$s{OE & 3

66/3/1 5 P.T.O.
Roasted Coffee Corporation is a coffeehouse chain operating in seven

states of India. Through its effective organisational structure, it has
grown despite pressure from competitors in the national market. The
company has a Purchase and Production department, Supply chain
management and logistics department, Brand management department
and Sales department. This structure has facilitated operational
efficiency, as employees became specialists within their own realm of
expertise. They could be imparted specialised training as the focus was
on limited range of skills.
Identify the organizational structure of Roasted Coffee Corporation. Also
state the three advantages of this structure other than those discussed in
the above paragraph.
11. EH$ H$ånZr Ho$ ny±Or ~OqQ>J {ZU©` H$mo à^m{dV H$aZo dmbo {H$Ýht VrZ H$maH$m| H$mo
g_PmBE & 3
AWdm
{dÎmr` {Z`moOZ Ho$ Xmohao CÔoí`m| H$mo g_PmBE & 3
Explain any three factors affecting capital budgeting decision of a
company.
OR
Explain the twin objectives of financial planning.
12. {H$Ýht VrZ AmYmam| na "A§VaU' VWm "{dHo$ÝÐrH$aU' _| A§V^}X H$s{OE & 3
Differentiate between ‘Delegation’ and ‘Decentralisation’ on any three
bases.
13. ñQ>rbmoZ EÝQ>aàmBµOoO CÀM JwUdÎmm dmbo ñQ>rb Ho$ ~V©Zm| Ho$ {Z_m©Vm h¢ & ñQ>rb Ho$ ~V©Zm| H$s
_m±J ~‹T> ahr h¡ Š`m|{H$ bmoJ OmJê$H$ hmo aho h¢ {H$ ßbmpñQ>H$ ñdmñÏ` Ho$ {bE AÀN>r Zht
h¡ & Bggo ñQ>rb Ho$ ~V©Zm| Ho$ CËnmXZ _| d¥{Õ hþB© h¡ & {dH«$` H$mo ~‹T>mdm XoZo Ho$ {bE
ñQ>rbmoZ EÝQ>aàmBµOoO Zo EH$ CXma gmI (Ho«${S>Q>) Zr{V H$s KmofUm H$s Omo BgHo$ WmoH$
H«o$VmAm| H$mo VrZ _mh H$s gmI (Ho«${S>Q>) XoVr h¡ &
Cn`w©º$ Ho$ àH$me _| ñQ>rbmoZ EÝQ>aàmBµOoO H$s H$m`©erb n±yOr Amdí`H$VmAm| H$mo à^m{dV
H$aZo dmbo Xmo H$maH$m| H$s nhMmZ H$s{OE & H$maU g{hV C„oI H$s{OE {H$ Cn`w©º$ nhMmZo
JE H$maH$m| Ho$ n[aUm_ñdê$n H$m`©erb ny±Or H$s Amdí`H$Vm A{YH$ hmoJr AWdm H$_ & 3

66/3/1 6
Steelone Enterprises is manufacturing high quality steel utensils. The
demand for steel utensils is rising as people are getting aware that
plastic is not good for health. This has led to increase in production of
steel utensils. To encourage sales, Steelone Enterprises declared a liberal
credit policy which allows three months credit to its wholesale buyers.
In the light of the above, identify the two factors affecting working capital
requirements of Steelone Enterprises. State with reason, whether the
factors as identified above, will result in high or low working capital
requirement.
IÊS> g
SECTION C
14. Xm{_Zr S>rgyµOm Zo ^maV _| "{H$Zgm [aQ>ob' Ho$ à~§Y {ZXoeH$ H$m H$m`©^ma g§^mbm & OmnmZ
pñWV _w»`mb` dmbr "{H$Zgm [aQ>ob' {nN>bo 40 dfmªo go \w$Q>H$a ì`dgm` H$a ahr h¡ &
BgHo$ {d{^Þ Xoem| _| joÌr` H$m`m©b` h¢, àËòH$ joÌr` H$m`m©b` AnZo joÌ H$s XþH$mZm| H$s
XoI^mb H$aVm h¡ & My§{H$ `h EH$ ~‹S>m g§JR>Z h¡, AV: joÌr` A{YH$m[a`m| H$mo _w»`mb`
Ûmam ñdrH¥$V H$mofm| H$mo AnZo joÌ Ho$ J«mhH$m| Ho$ H$ë`mU Ho$ {bE IM© H$aZo H$m {ZU©` boZo
H$m A{YH$ma {X`m J`m h¡ &
"{H$Zgm [aQ>ob' Z¡{VH$ ì`dhma Ho$ gd©loîR> g§^m{dV _mZX§S>m| H$m nmbZ MmhVr h¡ VWm
_yë`m| H$mo ì`dhma _| bmZo Ho$ {bE BgHo$ {bE EH$ AmMma g§{hVm {dÚ_mZ h¡ & H$ånZr H$s
Amoa go H$m`© H$aVo g_` g^r H$_©Mm[a`m| VWm ~moS>© gXñ`m| H$mo CƒV_ ì`{º$JV VWm
noeoda AI§S>Vm Ho$ _mnX§S>m| Ho$ AZwgma H$m`© H$aZm Amdí`H$ h¡ & BgH$m nmbZ Z H$aZo na
^mar X§S> VWm Zm¡H$ar g_m{á gpå_{bV h¡ &
"{H$Zgm [aQ>ob' Ûmam AnZmE JE gm_mÝ` à~§Y Ho$ {H$Ýht Xmo {gÕm§Vm| H$mo g_PmBE & 4
Damini D’Souza took over the reins of ‘Kinsa Retail’ as its Managing
Director in India. ‘Kinsa Retail’ with its headquarter at Japan has been
in the retail business for the last 40 years. It has regional offices in many
countries that take care of the shops in that region. As it is a large
organisation, the regional officers have been given the powers to decide
and spend funds sanctioned to them by the headquarter for the welfare of
the customers of their region.
‘Kinsa Retail’ wants the highest possible standards of ethical conduct
being followed, for which a code of conduct is in place for putting values
into practice. All employees as well as Board members are required to act
in accordance with the highest standards of personal
and professional integrity when acting on behalf of the company.
Non-compliance involves a heavy penalty including termination of
employment.
Explain any two principles of general management being followed by
‘Kinsa Retail’.

66/3/1 7 P.T.O.
15. "eoà ~mµOma' Ho$ {H$Ýht Mma H$m`mªo H$mo g_PmBE & 4
AWdm
àmW{_H$ ~mµOma _| ZE {ZJ©_Zm| Ho$ àdV©Z (âbmoQ>oeZ) H$s {H$Ýht Mma {d{Y`m| H$mo g_PmBE & 4
Explain any four functions of ‘Stock Exchange’.
OR
Explain any four methods of floatation of new issues in the primary
market.
16. Vng goZ Zo AnZr dV©_mZ gyn ~ZmZo dmbr _erZ H$mo EH$ N>moQ>r VWm gwdmø (nmoQ>}~b)
_erZ _| nwZ: {S>µOmBZ {H$`m & _erZm| H$mo ~oMZo Ho$ {bE CgZo AnZo MmMm Ho$ gmW EH$
g_Pm¡Vm {H$`m Omo bm^m| _| 50% ^mJ Ho$ gmW n[a`moOZm Ho$ {dÎmr`Z Ho$ {bE gh_V hmo
JE & _erZ H$mo ~mµOma _| CVmaZo Ho$ {bE CÝhm|Zo {dVaU Ho$ àË`j _mÜ`_ H$m M`Z {H$`m &
CÝhm|Zo CÚ_ H$mo "H$n-E-gyn' H$m Zm_ {X`m & àW_ df© _| CZH$m à_wI CÔoí` A{YH$V_
bm^ H$_mZm Wm & CÝhm|Zo _erZ Ho$ {dVaU Ho$ {bE Xoe â _| 30 à{e{jV {dH«$`H$Vm©Am|
H$s {Z`w{º$ H$s & AnZo {dH«$` bú`m| H$mo nyam H$aZo Ho$ {bE CÝhm§oZo {dH«$`H$Vm©Am| H$mo
àmoËgmhZ VWm nwañH$ma àñVm{dV {H$E &
(H$) ‘H$n-E-gyn’ Ûmam Cn`moJ {H$E JE {dnUZ-Xe©Z H$s nhMmZ H$s{OE &
(I) ‘H$n-E-gyn’ Ûmam Cn`moJ {H$`m J`m àdV©Z H$m gmYZ (J{V{d{Y) nhMm{ZE &
(J) Eogo {H$Ýht Xmo JwUm| H$m C„oI H$s{OE {OÝh| {dH«$`H$Vm©Am| H$s {Z`w{º$ Ho$ {bE
‘H$n-E-gyn’ Ûmam Ü`mZ _| aIm J`m hmoJm & 4
Tapas Sen, a manufacturer, redesigned his existing soup making
machine into a small and portable machine. For selling the machine he
entered into an agreement with his uncle who agreed to finance the
project with a 50% share in the profits. To launch the machine they
decided to start with direct channels of distribution. They named the
venture as ‘Cup-a-Soup’. In the first year their main objective was profit
maximization. They appointed 30 trained salesmen for distribution of the
machines across the country. They offered incentives and awards to
salesmen for achieving their sales targets.
(a) Identify the marketing philosophy used by ‘Cup-a-Soup’.
(b) Identify the tool of promotion used by ‘Cup-a-Soup’.
(c) For hiring the salesmen, state any two qualities ‘Cup-a-Soup’
would have kept in mind.

66/3/1 8
17. "~«m§qS>J' H$m Š`m AW© h¡ ? Cn^moº$mAm| Ho$ {bE ~«m§qS>J Ho$ {H$Ýht VrZ bm^m| H$m C„oI
H$s{OE & 4
AWdm
"n¡Ho$qµOJ' H$m Š`m AW© h¡ ? n¡Ho$qµOJ Ho$ {H$Ýht VrZ H$m`mªo H$m C„oI H$s{OE & 4
What is meant by ‘Branding’ ? State any three advantages of branding to
customers.
OR
What is meant by ‘Packaging’ ? State any three functions of packaging.
18. µOrZmo {b{_Q>oS> EH$ {díd ñVar` gyMZm VH$ZrH$ H$s nam_e©XmÌr H$ånZr h¡ {Og_| 45,000
H$_©Mmar 600 go A{YH$ J«mhH$m| H$mo 23 Xoem| _| godmE± àXmZ H$aVo h¢ & BgHo$ _w»`
H$m`©H$mar A{YH$mar Zrb gw_Z Zo H$ånZr H$mo {d{dYrH$aU VWm {dH$mg Ho$ {bE Xmo XeH$m|
VH$ _mJ©Xe©Z {X`m {Oggo `h gm°âQ>doà CÚmoJ H$s ^maV H$s EH$ AJ«Ur H$ånZr ~Z JB© &
H$ånZr Zo AnZo H$_©Mm[a`m| H$mo gd©loîR> à{ejU Adga gw{ZpíMV H$aZo hoVw _mZH$m| H$m
{ZYm©aU {H$`m h¡ &
BgH$m "àmoOoŠQ> JmBS>§og àmoJ«m_' 52 {XZm| H$m EH$ g§a{MV à{ejU H$m`©H«$_ h¡ & `h {d{^Þ
n¥îR>^y{_`m| dmbo g^r ZE gXñ`m| H$mo Amdí`H$ ì`mdhm[aH$ VWm VH$ZrH$s H$m¡ebm| _|
à{ejU XoZo Ho$ {bE àñVm{dV {H$`m OmVm h¡ Omo CÝh| gOrd Cn^moº$m n[a`moOZmAm| _| H$m`©
H$aZo Ho$ {bE V¡`ma H$aVm h¡ & VH$ZrH$s, noeoda VWm à~§YH$s` H$m`mªo Ho$ {bE BZ gXñ`m|
H$s {Z`w{º$ {díd{dÚmb`m| VWm à~§Y g§ñWmZm| go H$s OmVr h¡ & `h à{ejU H$m`©H«$_ ZE
H$_©Mm[a`m| H$mo OëX hr bmoJm|, n[adoe, H$m`© VWm ì`dgm` go n[a{MV H$amH$a ZE H$m`© _|
ì`dpñWV hmoZo _| ghm`Vm H$aVm h¡ &
(H$) ZE H$_©Mm[a`m| H$s {Z`w{º$ Ho$ {bE H$ånZr Ûmam Cn`moJ {H$E JE ^Vu Ho$ ~mø òmoVm|
H$s nhMmZ H$s{OE &
(I) ^mJ (H$) _| nhMmZo JE ^Vu Ho$ òmoV Ho$ Cn`moJ Ûmam {Z`wº$ {H$E JE H$_©Mm[a`m|
Ho$ à{ejU Ho$ {bE H$ånZr Ûmam Cn`moJ H$s JB© à{ejU {d{Y H$mo g_PmBE &
(J) Eogo {H$Ýht Xmo VarH$m| H$m C„oI H$s{OE {OZgo "àmoOoŠQ> JmBS>§og àmoJ«m_' µOrZmo
{b{_Q>oS> H$mo bm^m§{dV H$a gHo$ & 4

66/3/1 9 P.T.O.
Xeno Ltd. is a global information technology consulting company with

45,000 employees serving over 600 clients in 23 countries. Its Chief
Executive Officer, Neil Suman, guided the company through two decades
of diversification and growth to emerge as one of the leading Indian
companies in the software industry. The company has set standards in
ensuring the best training opportunities for its employees.
Its ‘Project Guidance Program’ is a 52-day structured training
programme. This is offered to all recruits of varied backgrounds to be
trained on essential behavioural and technical skills that prepares them
to work in live customer projects. These recruits are hired from
universities and management institutes for technical, professional as
well as managerial jobs. The training programme helps the new
employees in settling down quickly into the job by becoming familiar with
the people, the surroundings, the job and the business.
(a) Identify the external sources of recruitment used by the company
to hire new employees.
(b) Explain the method of training used by the company to train
employees selected by the source of recruitment identified in part
(a).
(c) State any two ways in which the ‘Project Guidance Programme’
can benefit Xeno Ltd.
19. "S>r.Eb.S>ãë`y. {b{_Q>oS>' Ho$ à~§Y {ZXoeH$ Am{XË` Imogbm VWm {dÎmr` à~§YH$ amOoe nwar
H$ånZr Ho$ {ZpîH«$` H$mofm| H$mo {Zdoe {H$E OmZo dmbo joÌm| Ho$ ~mao _| MMm© H$a aho Wo &
Am{XË` Imogbm H$m {dMma Wm {H$ YZ H$m {Zdoe ny±Or ~mµOma _| {H$`m OmZm Mm{hE, O~{H$
ê${‹T>dmXr hmoZo Ho$ H$maU amOoe nwar H$m gmoMZm Wm {H$ YZ H$m {Zdoe _wÐm ~mµOma _| {H$`m
OmZm C{MV hmoJm & Š`m|{H$ AW©ì`dñWm CË\w$„ Wr, à~§Y {ZXoeH$ Zo amOoe nwar H$mo ñdrH$ma
H$am`m {H$ CÝh| CË\w$„ AW©ì`dñWm H$m bm^ CR>mZm Mm{hE VWm AÀN>o à{V\$b H$mo àmá
H$aZo Ho$ {bE ny±Or ~mµOma _| {Zdoe H$aZm Mm{hE & A§VV… {ZpîH«$` H$mofm| H$m ny±Or ~mµOma _|
{Zdoe H$aZo H$m {ZU©` {b`m J`m &
(H$) H$ånZr H$mo {H$g àH$ma Ho$ ànÌm| H$m H«$` H$aZm Mm{hE ?
(I) CË\$w„ AW©ì`dñWm _| ny±Or ~mµOma Ûmam AÀN>o à{V\$b H$s g§^mdZm Š`m| hmoVr h¡ ?
H$maU H$m CëboI H$s{OE &
(J) Bg ~mµOma _| à{V^y{V`m± _wÐm ~mµOma H$s Anojm {H$VZr gwa{jV h¢ d Š`m| ? 4

66/3/1 10
Aditya Khosla, the Managing Director of ‘D.L.W. Ltd.’ and Rajesh Puri,
the Finance Manager were discussing about avenues of investing the idle
funds of the company. Aditya Khosla was of the opinion that money
should be invested in the capital market whereas Rajesh Puri, being
more conservative, felt that it would be better if the investment was
made in the money market. Since the economy was buoyant, the
Managing Director convinced Rajesh that they should take advantage of
it and invest in the capital market to get good returns. Ultimately it was
decided to invest the idle funds in the capital market.
(a) What kind of instruments should the company buy ?
(b) Why is the capital market expected to give a better return in a
buoyant economy ? State the reason.
(c) Why and how safe are the securities in this market as compared to
the money market ?
IÊS> X
SECTION D
20. gw_Z EH$ goÊS>{dM Q>moñQ>a H«$` H$aZm MmhVr Wr & CgZo Am°Z-bmBZ CnbãY {d{^Þ
goÊS>{dM Q>moñQ>am| H$s Om±M H$s VWm _yë`m§o H$s VwbZm H$s Vm{H$ EH$ ~w{Õ_ÎmmnyU© VWm
kmZnyU© {ZU©` {b`m Om gHo$ & BgHo$ níMmV² dh nmg Ho$ EH$ ~mµOma _| goÊS>{dM Q>moñQ>a
IarXZo JB© & EH$ gw{dk J«mhH$ Ho$ ZmVo CgZo ghr _mZH$sH$aU {M• XoIm & XþH$mZXma Zo Cgo
{d{^Þ Q>moñQ>a {XImE bo{H$Z dh Am°Z-bmBZ Om±M {H$E JE _yë` go A{YH$ _yë` ~Vm ahm
Wm & XþH$mZXma go ~mVMrV H$aZo Ho$ níMmV² dh _yë` H$mo H$_ H$amZo _| g\$b hþB© & EH$
CÎmaXm`r Cn^moº$m H$s Vah CgZo CËnmX Ho$ {bE ^wJVmZ H$s JB© am{e Ho$ ~Xbo _| H¡$e _o_mo
H$s _m±J H$s VWm Q>moñQ>a H$mo Ka bo JB© & n¡Ho$O ImobZo na Cgo EH$ {ZX©oímZ nwpñVH$m {_br,
{OgH$mo CgZo gmdYmZrnyd©H$ n‹T>m & BgHo$ níMmV² CgZo ha {ZX}eZ H$m EH$-EH$ H$aHo$
AZwgaU {H$`m VWm AnZo n[adma Ho$ {bE AÀN>r Vah go Q>moñQ> {H$E JE nZra goÊS>{dM
~ZmE &
(H$) H¡$e _o_mo H$s _m±J Ho$ A{V[aº$ gw_Z Ûmam {Z^mE JE {H$Ýht Xmo CÎmaXm{`Ëdm| H$m
C„oI H$s{OE &
(I) Cn`w©º$ pñW{V _| M{M©V {H$Ýht Xmo A{YH$mam| H$mo g_PmBE & 5

66/3/1 11 P.T.O.
Suman wanted to purchase a sandwich toaster. She checked about the

various sandwich toasters available online and compared the prices so
that an intelligent and wise choice could be made. Then she went to a
nearby market to buy the sandwich toaster. Being an informed consumer,
she looked for the correct standardisation mark. The shopkeeper showed
her different toasters but was quoting a higher price than the price she
had checked online. After negotiating with the shopkeeper, she was able
to bring the price down. As a responsible consumer, she asked for a cash
memo, against the amount paid for the product and took the toaster
home. On opening the package, she found an instruction booklet, which
she read carefully. Then she followed all instructions step-by-step and
made nicely toasted paneer sandwiches for her family.
(a) State any two responsibilities, which have been discharged by

Suman, besides asking for a cash memo.
(b) Explain the two rights being discussed in the above case.
21. à~§Y Ho$ _hÎd na àH$me S>mbZo dmbo {H$Ýht nm±M {~ÝXþAm| H$mo g_PmBE & 5
AWdm
‘g_Ýd`’ H$s {H$Ýht nm±M {deofVmAm| H$mo g_PmBE & 5
Explain any five points which highlight the importance of management.
OR
Explain any five features of ‘Co-ordination’.

66/3/1 12
22. h¢S>goZ, {díd H$s g\$bV_ H$ån{Z`m| _| go EH$, ‘Ý`yH¡$gb EÝQ>aàmBµOoO’ Ho$ _w»` H$m`©H$mar
A{YH$mar h¢ & CgH$s g\$bVm H$s H$hm{Z`m§o H$mo ^br-^m±{V XñVmdoµOr ê$n {X`m J`m Wm &
dh AË`{YH$ A{^ào[aV VWm `mo½` à~§YH$m| H$m M`Z H$aVm h¡ Omo AnZo H$m`© H$mo {~Zm
CgH$s ghm`Vm Ho$ g¥OZmË_H$ VWm n`m©á ê$n go H$a gH$Vo h¢ & dh g_yh Ho$ gXñ`m| H$mo
AnZm H$m`© ñd`§ H$aZo H$s VWm g_ñ`mAm| H$mo ñd`§ gwbPmZo H$s AZw_{V XoVm h¡ &
dh V^r hñVjon H$aVm h¡ O~ à{VHy$b n[apñW{V`m| H$mo R>rH$ H$aZo H$s Amdí`H$Vm hmoVr
h¡ & O~ VH$ nyU© ê$n go Amdí`H$ Z hmo dh A{YH$ma H$m à`moJ Zht H$aVm & dh AnZo
bmoJm| Ûmam Jb{V`m± hmoZo XoVm h¡ Vm{H$ do CZgo grI bo gH|$ & dh CZH$mo g_W©Z XoVm h¡ VWm
CÝh| {XE JE H$m`mªo H$mo nyam H$aZo Ho$ {bE Amdí`H$ gyMZm àXmZ H$aVm h¡ &
(H$) h¢S>goZ Ûmam AnZmB© JB© ZoV¥Ëd e¡br H$s nhMmZ H$s{OE &
(I) {MÌ H$s ghm`Vm go A{YH$ma Ho$ à`moJ na AmYm[aV Xmo AÝ` ZoV¥Ëd e¡{b`m| H$mo
g_PmBE & 5
Handsen is the CEO of ‘Newcastle Enterprises’, one of the world’s most

successful companies. His success stories have been well documented. He
chooses highly motivated and capable managers who can perform their
tasks creatively and adequately without his help. He allows the group
members to work on their own tasks and resolve issues themselves.
He intervenes, but only when needed to correct an unfavorable situation.

He does not use power unless it is absolutely essential. He even allows
mistakes to happen for his people to learn from them. He supports them
and supplies them the required information to complete the assigned
task.
(a) Identify the leadership style adopted by Handsen.
(b) With the help of diagram, explain the other two leadership styles
based on the use of authority.

66/3/1 13 P.T.O.
IÊS> `
SECTION E
23. EH$ df© _| ^maVr` OZg§»`m Ho$ 90% ^mJ VH$ nh±þMZo Ho$ _hÎdmH$m§jr bú` Ho$ gmW gm¡a^
O¡Z Zo "H$sQ>moZ' Zm_ go EH$ Q>obrH$m°_ ì`dgm` Zm{gH$ _| ñWm{nV {H$`m & CgZo Bg
ì`dgm` H$m M`Z Bg YmaUm Ho$ gmW {H$`m {H$ AJbo 2 – 3 dfmªo _| S>oQ>m godmAm| H$s _m±J
Mma JwUm ~‹T> OmEJr & Bg _hÎdmH$m§jr bú` H$mo nyam H$aZo Ho$ {bE Cgo `m Vmo {H$gr
dV©_mZ Q>obrH$m°_ ì`dgm` H$m A{YJ«hU H$aZm Wm AWdm {H$gr Ho$ gmW gh`moJ H$aZm Wm
AWdm H$R>moa à{V`mo{JVm Ho$ H$maU AmH«$m_H$Vm Ho$ gmW ñdV§Ì ê$n go AHo$bm MbZm Wm &
`h AÀN>r Vah go OmZVo hþE {H$ Xoe H$s Am{W©H$ Zr{V`m| _| n[adV©Z Ho$ H$maU AZw_mZ
~Xb gH$Vo h¢, CgZo {d{^Þ H$ån{Z`m| Ho$ àñVmdm| H$m VwbZmË_H$ _yë`m§H$Z à{V A§e Am`,
H$a Xo`Vm, bm^m§e ^wJVmZ, Am{X Ho$ AmYma na {H$`m &
Cn`w©º$ AZwÀN>oX _|o à~§Y Ho$ EH$ H$m`© Ho$ Hw$N> MaUm| H$s MMm© H$s JB© h¡ & Cn`w©º$ AZwÀN>oX
go n§{º$`m± CX²Y¥V H$aVo hþE BZ MaUm| H$mo H$mbH«$_~Õ ê$n go g_PmBE & 6
Saurabh Jain set up a telecom business in Nasik, named as ‘Ketone’, with
an ambitious target of reaching out to 90% of the Indian population
within one year. He chose this business on the belief that the demand for
data services will increase 4 times within the next 2 – 3 years. To fulfil
such an ambitious target, he had to either acquire an existing telecom
business or collaborate or go independent aggressively in the light of
tough competition.
He assessed the proposals of different companies vis-a-vis earnings per
share, tax liabilities, dividends paid, etc. and their future projections,
knowing fully well that the projections may change if the country’s
economic policies get modified.
The above paragraph discusses some of the steps of one of the functions
of management. By quoting the lines from the above paragraph, explain
these steps in chronological order.
24. "{Z`ÝÌU' H$mo n[a^m{fV H$s{OE & à~§Y Ho$ {Z`moOZ VWm {Z`ÝÌU H$m`mªo Ho$ _Ü` g§~§Y H$mo
g_PmBE & 6
AWdm
{Z`ÝÌU à{H«$`m Ho$ {d{^Þ MaUm| H$mo g_PmBE & 6
Define ‘Controlling’. Explain the relationship between planning and
controlling functions of management.
OR
Explain the various steps in the process of controlling.

66/3/1 14
25. ^maVr` hñVH$bm {damgV BgHo$ ar{V-[admOm§o VWm naånamAm| Ho$ H$maU Or{dV h¡ &
amOñWmZ, JwOamV, Ag_, BË`m{X Ho$ hñV{epën`m| Ûmam ~ZmE JE hñVH$bm CËnmX Z Ho$db
Xoe _| Cn`moJ {H$E OmVo h¢ A{nVw g§.am. A_o[aH$m, O_©Zr, `y.Ho$., \«$m§g VWm {díd Ho$ AÝ`
Xoem| _| ^r {Z`m©V {H$E OmVo h¢ & BZ CËnmXm| Ho$ {Z`m©V H$s _mÌm go ^maV H$mo ^wJVmZ
g§VwbZ VWm AË`{YH$ Amdí`H$ {dXoer _wÐm H$m bm^ {_bVm h¡ & àYmZ _§Ìr MmhVo h¢ {H$
hñVH$bm CÚmoJ H$mo VH$ZrH$s Ho$ gmW Omo‹S>H$a BgH$m {dñVma {H$`m OmE & BgH$m Ho$ÝÐ
{~ÝXþ {Z_m©Ur à{H«$`m H$mo n[ad{V©V H$aZm, {Q>H$mD$nZ H$mo gw{ZpíMV H$aZm VWm ZdàdV©Zm|
H$mo AnZmZm hmoZm Mm{hE &
Cn`w©º$ AZwÀN>oX go n§{º$`m| H$mo CX²Y¥V H$aVo hþE ì`mdgm{`H$ n`m©daU Ho$ {H$Ýht Mma
Am`m_m| H$mo g_PmBE & 6
India’s craft heritage is surviving because of its customs and traditions.
Craft products made by craftsmen of Rajasthan, Gujarat, Assam, etc. are
not only used in the country but are also exported to USA, Germany, UK,
France and other countries of the world. The volume of exports of these
products gives India an advantage in balance of payments and the much
needed foreign exchange. The Prime Minister desires that the handicraft
industry should be expanded by linking it with technology. Focus should
be on changing the manufacturing process, ensuring durability and
adopting innovations.
Quoting the lines from the above paragraph, explain any four dimensions
of the business environment.
00
66/3/1 15 P.T.O.
-Strictly Confidential: (For Internal and Restricted Use Only)

Senior School Certificate Examination
March -----2018-19
Marking Scheme---Business Studies 66/3/1, 66/3/2, 66/3/3
General Instructions:
1. You are aware that evaluation is the most important process in the actual and correct
assessment of the candidates. Small mistakes 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. Evaluation is a 10-12 days mission
for all of us. Hence, it is desired from you too give your best in this process.
2. 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 innovative may be
assessed and marks be awarded to them.
3. The head examiner has to go through the first five answer scripts evaluated by each
evaluator to ensure that evaluation has been carried out as per instructions given in the
marking scheme. The remaining answer scripts meant for evaluation shall be given only
after ensuring that there is no significant variation in the marking and encircled.
4. 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 totalled up and encircled in the
left hand margin.
5. If a question does not have any parts marks must be awarded in the left hand margin
and encircled.
6. If a student has attempted an extra question ,answer of the question deserving more
marks should be retained and other answer scored out
7. In a question, if two features/ characteristics/ points are asked but an examinee writes
more than two features/ characteristics/ points, say, five, of which first is correct, second
is incorrect, the first two should be assessed and the remaining should be ignored.
8. The examiners should acquaint themselves with the instructions given in the
Guidelines for Spot Evaluation before starting the actual evaluation.
9. Every examiner should stay full working hours i.e. 8 hours every day and evaluate 25
answer books.

10. It is expected that the marking scheme should be followed objectively to ensure
quality evaluation. For instance, if an examinee scores 24 marks, then the marks should
not be inflated to 27 simply to pass him/ her.
11. Avoid the following common type of errors committed by the examiners in the pat-
 Leaving answers or parts thereof unassessed in the answer script.
 Giving more marks for an answer than assigned to it or deviation from the marking
scheme.
 Wrong transference of marks from the inside pages of the answer books 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.
 Wrong transference of marks from answer books to award list.
 Answer marked as correct but marks not awarded.
 Half or a part of answer marked correct and the rest as wrong but no marks
awarded.
12. Marks should be awarded keeping in view the total marks of a particular question and
not the total marks of the question paper. For example, if one mark is given to a 3 marks
question even if nothing is correct, then that one mark constitutes 33% of the total marks
for this answer.
13. The examiner shall also have to certify in the answer book that they have evaluated
the answer book strictly in accordance with the value points given in the marking scheme
and correct set of question papers.
14. While evaluating the answer scripts, if the answer is found to be totally incorrect, it
should be marked as (x) and awarded zero (0) marks.
15. A full scale of marks 0-80 has to be used. Please do not hesitate to award full marks if
the answer deserves it. Similarly, wherever an examinee writes an answer upto the mark,
his/ her marks should not be deducted unnecessarily.
16. As per the orders of Hon’ble Supreme Court, the candidates would now be permitted
to obtain photocopy of the Answer Book on request on payment of the prescribed fee. All
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.

..
66 66 66 MARKING SCHEME – 2018-19
/3 /3 /3 BUSINESS STUDIES Marks
/1 /2 /3 66/3/1
EXPECTED ANSWERS / VALUE POINTS
SECTION A
1 7 5 Q. Define ‘Efficiency’.
Ans. Efficiency means doing the task correctly and 1 mark

with minimum cost.
(or any other correct meaning)
OR OR
Q. State any two functions to be performed at

supervisory level of management.
Ans. Functions to be performed at supervisory level

of management: (Any two)
(a) To oversee the efforts of the workforce.

  ½x2
(b) To interact with the actual workforce and pass on =
the instructions of the middle management to the 1 mark
workers.
(c) To ensure that the quality of output is maintained

and wastage of material is minimized.  
(d) To ensure that safety standards are maintained .

 
(or any other correct function)
2 8 6 Q. Differentiate between Formal organisation and

Informal Organisation on the basis of ‘Nature’.
Ans. Formal organisation has a rigid structure while

an Informal Organisation has a flexible structure. 1 mark
OR
3

Q. Differentiate between ‘Single Use Plan’ and OR

‘Standing Plan’ on the basis of meaning.
Ans. Single use plan is a one time plan specifically

designed to achieve a particular goal that once ½ mark
achieved will not recur in the future. +
½ mark
A standing plan is used for activities that occur =
regularly over a period of time. 1 mark
3 - 7 How does an organisation satisfy ‘Esteem Needs’

of its employees? State.
Ans. Organisation satisfies ‘Esteem Needs’ of its

employees by giving job titles to the employees. 1 mark
4 2 8 Q. People think that it is the ‘Product’ only that

can be marketed. But something else can also be
marketed, e.g. ‘Visit Kerala for Health Tourism’.
Identify what is being marketed here.
1 mark
Ans. Place.
5 3 - Q. Give the meaning of ‘Price’ as an element of

marketing mix.
Ans. Price Mix involves different Pricing Methods,

Pricing strategies, Pricing Policies and Price
Changes. It involves decisions regarding the basic 1 mark
price of the product, discounts to customers, traders
and credit terms, terms of payment etc. so that the
customers perceive the price to be in line with the
value of the product.
OR
OR
Q. What is meant by ’Public Relations’?

Ans. Public Relations refer to a variety of

programmes to promote and protect a company’s 1 mark
image or its products in the eyes of the public.
6 4 2 Q. As a part of its capital structure, ‘Venus Ltd.’

had ₹50 lakhs as Equity Share Capital and a loan
of ₹20 lakhs from Neon Bank. On earning a good
profit, Venus Ltd decided to give dividend to the
Equity Shareholders but were surprised when the
Neon Bank imposed restrictions on the payment
of dividend.
Identify the factor affecting dividend decision
which allows Neon Bank to impose restrictions on
the payment of dividend by ‘Venus Ltd.’.
Ans. Contractual constraints. 1 mark
7 5 3 Q. Mark Nar, a Latin American while closing a

business deal with a businessman from Spain,
used a word which was considered offensive in
Spanish when translated. This made the Spanish
businessman upset and he backed away.
Name the semantic barrier to effective
communication.
Ans. Badly expressed message. 1 mark
8 6 4 Q. As a part of its comprehensive plan ‘Neerja

Ltd. decided to combine a new line of activity
with its existing footwear business.
Ans. Strategy. 1 mark
SECTION B
9 12 - Q. State three features of directing function of
management.
Ans. Features of directing function of management:

(Any three)

(i) While other functions prepare a setting for action,

directing initiates action by people in the
organisation towards attainment of desired 1x3
objectives. =
3 marks
(ii) Directing takes place at every level of
management. Every manager from from top
executive to the supervisor performs the directing
function.
(iii) Directing is a continuous process as it takes

place throughout the life of the organisation
irrespective of the people occupying managerial
positions.
(iv) Directing flows from top to bottom through the

organisation hierarchy. Every manager can direct his
immediate subordinates and take instructions from
his immediate boss.
OR OR
Q. State any three measures to improve

communication effectiveness.
Ans. Measures to improve communication

effectiveness: (Any three)
(i) The manager should clarify the ideas before

communicating to the subordinates. The entire
problem should be studied in depth, analysed and
stated in such a manner that it is clearly conveyed to
the subordinates.
(ii) The manager should adjust his communication

according to the needs and understanding level of the
subordinates.
1x3
(iii) The manager should consult others before =
developing a plan for communication. Participation 3 marks
and involvement of subordinates may help to gain
ready acceptance and willing co-operation from

them.
(iv) The manager should be aware of the languages,

tone and content of the message so that it does not
offend the sentiments of the listeners.
(v) The manager should know the interests and needs

of the people with whom the communication is being
done so that he/ she can convey things of help and
value to listeners.
(vi) The manager should ensure proper feedback by

asking questions regarding the message conveyed.
(vii) The manager should communicate for present as

well as future goals of the enterprise.
(viii) The manager should do a regular follow up and

review of the instructions given to the subordinates.
(ix) The manager should be a good listener as patient

and attentive listening can solve half of the problems.
(If an examinee has given only the heading, ½

mark for each heading should be awarded)
10 13 11 Roasted Coffee Corporation is a coffeehouse

chain operating in 7 states of India. Through its
effective organisational structure, it has grown
despite pressure from competitors in the national
market.
The company has a Purchase and Production
department, Supply chain management and
logistics department, Brand management
department and Sales department.
This structure has facilitated operational
efficiency, as employees became specialists within
their own realm of expertise. They could be
imparted specialised training as the focus was on
limited range of skills.
Identify the organizational structure of Roasted
Coffee Corporation. Also state the three

advantages of this structure other than those

discussed in the above paragraph.
Ans. Functional Structure 1 mark
Three more advantages Roasted Coffee Corporation

would be experiencing by deploying Functional
structure: 1x2
=
(a) Occupational specialisation since emphasis is 2 marks
placed on specific functions. =
1+2
(b) Control and coordination within a department =
because of similarity in the tasks being performed. 3 marks
(c) Different functions would be getting due

attention.
(d) Lower cost because of minimal duplication of

effort.
11 - 12 Q. Explain any three factors affecting capital

budgeting decision of a company.
½ mark
for the
Ans. Factors affecting capital budgeting decision of a heading
company: +
½ mark
(a) Cash flows of the project for its
explanation
(b) Rate of return of the project. =
1x3
(c) Investment criteria. =
3 marks
OR OR
Q. Explain the twin objectives of financial ½ mark

planning. for the
heading
Ans. Objectives of financial planning: +
1 mark
8

(i) To ensure availability of funds whenever required for its

explanation
(ii) To see that the firm does not raise resources =
unnecessarily 1½x2
=
3 marks
12 10 13 Differentiate between delegation and
decentralisation on any three bases.
Ans. Difference between delegation and

Decentralisation:
Basis Delegation Decentralisation
Meaning Delegation refers Decentralisation refers
to the downward to systematic
transfer of delegation of authority
authority from a through all the levels
superior to a of management and in
subordinate all the departments
except that which can
be exercised only at
central points.
Nature It is compulsory It is optional because it

because no is done at the
individual can discretion of the top
perform all tasks management.
on his own.
Freedom More control by Less control over 1x3
of action superiors, hence executives, hence =
less freedom to greater freedom of 3 marks
take own decisions action
Scope It has a narrow It has a wide scope as
scope as it is it implies extension of
limited to superior delegation to the
and his immediate lowest level of
subordinate. management.
Status It is a process It is a result of the
followed to share policy decision of the
tasks top management.
Purpose To lessen the To increase the role of
burden of the the subordinates in the
manager organisation by giving
them more autonomy.

13 11 10 Steelone Enterprises is manufacturing high

quality steel utensils. The demand for steel is
rising as people are getting aware that plastic is
not good for health. This has led to increase in the
production of steel utensils. To encourage sales,
Steelone Enterprises declared a liberal credit
policy, which allows three months credit to its
wholesale buyers.
In the light of the above, identify the two factors

affecting capital requirements of Steelone
Enterprises. State with reason, whether the
factors as identified above, will result in high or
low working capital requirement.
Ans. Factors affecting working capital requirements

are:
(i) Nature of business

(ii) Credit allowed
(iii) Scale of operations
½ mark for
(i) Nature of business identifying
Since Steelone Enterprises is a manufacturing each factor
business, it will require high/ more working capital +
as raw materials need to be converted into finished ½ mark for
goods. each reason
=
(ii) Credit allowed 1x3
Since it has a liberal credit policy it will require high/ =
more working capital because of higher debtors. 3 marks

Since the business will be operating on a higher
scale, it will require high/ more working capital as
the quantum of inventory and debtors required will
be high.
SECTION C
14 18 19 Damini D’souza took over the reins of ‘Kinsa
Retail’ as its Managing Director in India. Kinsa
Retail with its headquarters at Japan has been in
10

retail business for the last 40 years. It has regional

offices in many countries with each regional office
taking care of the shops in that particular region.
As it is a large organisation, the regional officers
have been given the powers to decide and spend
funds sanctioned to them by the headquarter for
the welfare of the customers of their region.
Kinsa Retail wants the highest possible standards
of ethical conduct being followed for which a code
of conduct is in place for putting values into
practice. All employees as well as Board members
are required to act in accordance with the highest
standards of personal and professional integrity
when acting on behalf of the company. Non-
compliance involves a heavy penalty including
termination of employment.
State two principles of general management being
followed by Kinsa Retail.
Ans. Principles of General management being 1 mark each

followed by Kinsa Retail are: for
identifying
(i) Discipline which refers to obedience to each
organizational rules and employment agreement that principle
are necessary for the working of the organization. It +
requires good superiors at all levels, clear and fair 1 mark
agreement and judicious application of penalties. for each
explanation
=
(ii) Centralisation and Decentralisation which 2+2
suggests that there is a need to balance subordinate =
involvement through decentralisation with managers 4 marks
retention of final authority through centralisation.
15 - - Q. Explain any four functions of ‘Stock

Exchange.’
Ans. Functions of Stock Exchange are: (Any four)
(a) Providing liquidity and marketability to existing ½ mark

securities for the
heading
(b) Pricing of securities +
11

½ mark
(c) Safety of transaction for its
explanation
(d) Contributes to economic growth =
1x4
(e) Spreading of equity cult =
4 marks
(f) Providing scope for speculation
OR OR
Q. Explain any four methods of floatation of new

issues in the primary market.
Ans. Methods of floatation of new issues in the

primary market: (Any four)
½ mark
(i) Offer through Prospectus for naming
the method
(ii) Offer for Sale +
½ mark
(iii) Private Placement for its
explanation
(iv) Rights Issue =
1x4
(v) E-IPO =
4 marks
16 19 14 Tapas Sen, a manufacturer, redesigned his

existing soup making machine into a small
portable machine. For selling the machine, he
entered into an agreement with his uncle who
agreed to finance the project with a 50% share in
the profits. To launch the machine, they decided
to start with direct channels of distribution. They
named the venture ‘Cup-a-Soup’. In the first
year, their main objective was profit
maximisation. They appointed 30 trained
salesmen for distribution of the machine across
the country. They offered incentives and awards
to salesmen for achieving their sales targets.
(a) Identify the marketing philosophy used by
12

‘Cup-a-soup’.
(b) Identify the tool of promotion used by ‘Cup-a-
Soup’.
(c) For hiring the salesmen, state any two qualities
‘Cup-a-soup’ would have kept in mind. 1 mark for
identifying
the
Ans. (a) Product concept
marketing
philosophy
(b) Personal Selling. +
1 mark for
(c) Qualities of a good salesman: (Any two) identifying
the tool of
(i) A good salesman should have physical qualities promotion
such as pleasing and charming personality which
creates a good impression on the customers.
(ii) He/ she should be social, humble and +

cooperative.
(iii) A salesman must possess imagination, foresight,

presence of mind, good memory and initiative. 1x2
=
(iv) He/ she should have full and updated knowledge 2 marks
about the product he is selling.
(v) He/ she should have good communication skills. =

1+1+2
(vi) He must be honest and sincere in performing his =
duty. 4 marks
(vii) A salesman who is polite and courteous

generates buyer’s confidence
(viii) The salesman should have the convincing

power to develop the belief in a customer that the
product he is buying is the best.
(or any other correct quality)
17 - - Q. What is meant by ‘Branding’? State any three

advantages of branding to customers.
Ans. Branding is the process of giving a name, or a
13

sign or a symbol to a product which helps in 1 mark

identifying and distinguishing it from the
competitors’ product.
Advantages of branding to customers: (Any three) +
(i) Branding helps the customers in identifying the

product as a customer who is satisfied with the
product need not make a close inspection every time 1x3
he has to buy the product. =
3 marks
(ii) Branding ensures quality as the customers can =
have recourse to the manufacturer or marketer if 1+3
there is any deviation in quality. =
4 marks
(iii) Some brands become status symbols because of
their quality. The consumer of these brands feel
proud and satisfied by using them
OR
OR
Q. What is meant by ‘Packaging’? State any

three functions of packaging.
1 mark
Ans. Packaging refers to the act of designing and
producing the container or wrapper of a product.
+
Functions of packaging: (Any three)
1x3
(i) It helps in product identification. =
3 marks
(ii) It helps in protection of the product from
spoilage, breakage, leakage, damage etc.
=
(iii) It facilitates use of the product to the consumers 1+3
through appropriate sizes and shapes. =
4 marks
(iv) It helps in promotion of the product as a good
package attracts the attention of the people at the
time of purchase.
14

(v) It helps in preventing adulteration as the product

is properly packed.
18 14 16 Q. Xeno Ltd. is a global information technology

consulting company with 45,000 employees
serving over 600 clients in 23 countries. Its Chief
Executive Officer, Mr Neil Suman guided the
company through two decades of diversification
and growth to emerge as one of the leading Indian
companies in the software industry. The company
has set standards in ensuring the best training
opportunities for its employees.
The Project Guidance Program is a 52 day

structured training program offered to all
recruits of varied backgrounds to be trained on
essential behavioural and technical skills that
prepares them to work in live customer projects.
These recruits are hired from universities and
management institutes for technical, professional
as well as managerial jobs. It is to help the new
employees in settling down quickly into the job by
becoming familiar with the people, the
surroundings, the job and the business.
(a) Identify the external sources of recruitment
used by the company to hire new employees.
(b) Explain the method of training used by the
company to train employees selected by the
source of recruitment identified in part (a)
(c) State two ways in which the Project Readiness
Program can benefit Xeno Ltd.
1 mark for
identifying
the external
Ans. (a) Campus Recruitment source of
recruitment
(b) Induction Training +

[½ mark for
It is a type of training given to help the new identifying
employee in settling down quickly into the job by method of
becoming familiar with the people, the surroundings, training
the job and the business. +
15

½ mark for
its
explanation
(c) Ways in which Project Readiness Program can =
benefit Xeno Ltd.: (Any two) 1 mark]
+
(i) Avoiding wastage of efforts and money as
training is systematic learning, better than hit and
trial methods.
(ii) Enhancing employee productivity both in terms

of quantity and quality leading to higher profits.
1x2
(iii) Equipping the future manager to take over in an =
emergency. 2 marks
(iv) Reducing employees’ turnover as it increases =

employee morale and reduces absenteeism.
(v) Helping the organisation in obtaining effective

response in a fast changing environment
1+1+2
=
4 marks
19 16 18 Q. Aditya Khosla, the Managing Director of

‘D.L.W. Ltd.’ and Rajesh Puri, the Finance
Manager were discussing about the avenues of
investing the idle funds of the company. Aditya
Khosa was of the opinion that money should be
invested in the capital market whereas Rajesh
Puri, being more conservative, feels that it would
be better if the investment was made in money
market.
Since the economy was buoyant, the Managing
Director convinced Rajesh that they should take
advantage of it and invest in the capital market to
get good returns. Ultimately it was decided to
invest the idle funds in the capital market.
(a) What kind of instruments should the company
buy?
(b) Why is the capital market expected to give a
16

better return in a buoyant economy? State the

reason.
(c) Why and how safe are the securities in this
market as compared to money market?
Ans. (a) Shares, debentures, bonds 1 mark
(b) Capital market is expected to give a better return

in a buoyant economy as: [1 mark for
each reason
(i) The securities are held for a longer duration =
1x2
(ii) There is a scope of earning capital gains on = 2 marks]
shares.
(c) Securities in capital market are riskier with

respect to return and principal repayment. Issuing 1 mark
company may fail to perform as promoters may
defraud investors.
=
1+2+1
=
4 marks
SECTION D
20 22 22 Q. Suman wanted to purchase a sandwich toaster.
She checked about the various sandwich toasters
available online and compared the prices so that
an intelligent and wise choice could be made.
Then she went to a nearby market to buy the
sandwich toaster. Being an informed consumer,
she looked for the correct standardisation mark.
The shopkeeper showed her different toasters but
was quoting higher price than the price she had
checked online. After negotiating with the
shopkeeper, she was able to bring the price down.
As a responsible consumer, she asked for a cash
memo against the amount paid for the product
and took the toaster home. On opening the
package, she found an instruction booklet, which
17

she read carefully. Then she followed all

instructions step by step and made nicely toasted
paneer sandwiches for her family.
(a) State the consumer responsibilities, which
have been discharged by Suman besides asking
for a cash memo.
(b) Explain the two rights being discussed in the
above case.
Ans. Consumer responsibilities, which have been

discharged by Suman besides asking for a cash
memo: (Any three)
(i) She was aware about various goods and services

available in the market and made an intelligent and
wise choice.
(ii) She bought standardised product as

standardistion provides quality assurance. 1x3
=
(iii) She learnt about the risks associated with 3 marks
product and followed manufacturer’s instructions
(iv) She asserted herself to get a fair deal.
½ mark for
identifying
the right
(b) Rights discussed in the above case are: +
½ mark for
(i) Right to choose its
explanation
(ii) Right to be informed 1x2
=
(iii) Right to safety 2 marks
=
3+2
=
5 marks
21 - - Q. Explain any five points which highlight the
importance of management.
18

Ans. Importance of management: (Any five)
(a) Helps in achieving group goals. ½ mark for

heading
(b) Increases efficiency. +
½ mark for
(c) Creates a dynamic organisation. explan-
ation
(d) Helps in achieving personal objectives. =
1x5
(e) Helps in the development of society. =
5 marks
(If an examinee has not given the headings as
above but has given the correct explanations, full
credit should be given)
OR
OR
Q. Explain any five features of ‘Co-ordination’.
Ans. Features of co-ordination: (Any five)
(i) Integrates group efforts.

½ mark for
(ii) Ensures unity of action. heading
+
(iii) Continuous process. ½ mark for
explan-
(iv) Pervasive function. ation
=
(v) Responsibility of all managers. 1x5
=
(vi) Deliberate function. 5 marks
(if an examinee has not given the headings as

above but have given the correct explanations,
full credit should be given)
22 20 20 Handsen is the CEO of Newcastle Enterprises,

one of the world’s most successful companies. His
19

success stories have been well documented. He

chooses highly motivated and capable managers
who can perform their tasks creatively and
adequately without his help. He allows the group
members to work on their own tasks and resolve
issues themselves.
He intervenes, but only when needed to correct an
unfavorable situation. He does not use power
unless it is absolutely essential. He even allows
mistakes to happen for his people to learn from
them. He supports them and supplies them the
required information to complete the assigned
task.
(a) Identify the leadership style adopted by
Handsen.
(b) With the help of a diagram, explain the other
two leadership styles based on the use of
authority.
Ans. (a) Laissez Faire leadership style 1 mark
(b) The other two leadership styles based on the use

of authority are:
(i) Autocratic leadership style ½ mark
A +
½ mark
B C D +
A is the leader and B, C and D are the followers.
An autocratic leader gives orders and expects his 1 mark

subordinates to obey those orders. =
There is one-way communication with the 2 marks
subordinates who act according to the command
given by the manager.
20

(ii) Democratic leadership style ½ mark
½ mark
In the above diagram, A is the leader and B, C, D +

and E are subordinates.
A democratic leader develops action plans and

makes decisions in consultation with his 1 mark
subordinates. Such a leader recognises that people =
perform best if they set their own objectives. 1+2+2
=
5 marks
SECTION E
23 25 25 Q. Saurabh Jain set up a telecom business in
Nasik ‘ Ketone’ with an ambitious target of
reaching out to 90% of the Indian population
within one year. He chose this business on the
belief that the demand for data services will
increase 4 times within the next 2-3 years.
To fulfill such an ambitious target, he had to
either acquire an existing telecom business or
collaborate or go independent aggressively in the
light of tough competition.
He assessed the proposals of different companies
vis-s-vis earnings per share, taxes, dividends paid
etc. and their future projections knowing fully
well that the projections may change if the
country’s economic policies get modified.
The above paragraph discusses some of the steps

of one of the functions of management. By
quoting the lines from the above paragraph,
explain these steps in chronological order.
Ans. Steps discussed in the above case are:
21

(i) Setting objectives
‘Saurabh Jain set up a telecom business in Nasik ‘

Ketone’ with an ambitious target of reaching out to
90% of the Indian population within one year’
Objectives may be set for the entire organisation and ½ mark for
each department or unit within the organisation. naming each
They specify what the organisation wants to achieve. step
+
(or any other suitable explanation) ½ mark for
quoting the
(ii) Developing premises line
+
‘He chose this business on the belief that the demand ½ mark for
for data services will increase 4 times within the next its
2-3 years’ explanation
A manager is required to make certain assumptions =

about the future called premises. Assumptions are the 1½x4
base material upon which plans are to be drawn. =
6 marks
(or any other suitable explanation)
(iii) Identifying alternative courses of action
‘To fulfill such an ambitious target, he had to either

acquire an existing telecom business or collaborate
or go independent aggressively in the light of tough
competition’
As there may be many ways to achieve the

objectives, all the alternative courses of action should
be identified and thoroughly discussed.
(iv) Evaluating alternative courses
‘He assessed the proposals of different companies

vis-s-vis earrings per share, taxes, dividends paid etc
and their future projections knowing fully well that
the projections may change if the country’s economic
22

policies get modified’
The pros and cons of each alternative are weighed in

the light of the objective to be achieved, their
feasibility and consequences.
(If an examinee has not given the headings of the

steps as above but has given the correct
explanations, full credit should be given)
24 - - Q. Define ‘Controlling’. Explain the relationship

between planning and controlling functions of
management.
Ans. Controlling means ensuring that the activities in

an organisation are performed as per the plans. 1 mark
Relationship between planning and controlling:

(With explanation)
(i) Controlling takes place on the basis of standards

developed by planning. 1x5
=
(ii) Planning without controlling is meaningless. 5 marks
=
(iii) Planning is prescriptive whereas controlling is 1+5
evaluative. =
6 marks
(iv) Planning and controlling both are forward-
looking.
(v) Planning and controlling both are looking back.
(In case the candidate has not given the

relationship in the form of points but has
explained all the points in his answer, full credit
be given)
OR OR
23

Q. Explain the various steps in the process of

controlling.
Ans. Steps in the process of controlling:
(i) Setting performance standards 1 mark each

for steps (i),
(ii) Measuring actual performance (ii), (iii) and
(v)
(iii) Comparing actual performance with standards +
2 marks for
(iv) Analysing deviations step (iv)
 Critical Point Control =
 Management by Exception 4+2
=
(v) Taking corrective action 6 marks
(If an examinee has not given the headings as

above but has given the correct explanations, full
credit should be given)
25 23 23 India’s craft heritage continues because if its

customs and traditions. Crafts are used not only
in the country by craftsmen in Rajasthan,
Gujarat and Assam but are also exported to USA,
Germany, UK and France. The volume of exports
and imports give India an advantage in balance of
payments and the much needed foreign exchange
reserves. The Prime Minister desires that the
handicraft industry should be expanded by
linking it with technology. Focus should be on
changing the manufacturing process, ensuring
durability and adapting innovations.
Quoting the lines from the above para, explain

four dimensions of the business environment.
Ans. Dimensions of business environment are:
(a) Social environment
India’s craft heritage continues because if its

customs and traditions ½ mark for
24

naming each
Social Environment includes social forces like dimension
custom and traditions, values, social trends and +
society’s expectation from business. ½ mark for
its
explanation
(b) Economic environment +
½ mark for
The volume of exports and imports give India an quoting the
advantage in balance of payments and the much line
needed foreign exchange reserves =
1½x4
Economic environment refers to factors like interest =
rates, inflation rates and changes in disposable 6 marks
income of people etc. which have an impact on
business enterprise.
(c) Political environment
The Prime Minister desires that the handicraft

industry should be expanded by linking it with
technology
Political environment includes political conditions

such as general stability and peace in the country and
specific attitudes that elected government
representatives hold towards business.
(d) Technological environment
Focus should be on changing the manufacturing

process, ensuring durability and adapting
innovations
Technological Environment of business includes

forces relating to scientific improvements and
innovations which provide new ways of producing
goods and services and new methods and techniques
of operating a business.
25

..
66/3/2
66 66 66 MARKING SCHEME – 2018-19
/1 /2 /3 66/3/2
SECTION A
- 1 - Q. What is meant by ‘Effectiveness’ in

management?
1 mark
Ans. ‘Effectiveness’ in management means doing the
right task, completing activities and achieving goals
4 2 8 Q. People think that it is the ‘Product’ only that can

be marketed. But something else can also be
1 mark
Ans. Place.
5 3 - Q. Give the meaning of ‘Price’ as an element of

marketing mix.
Ans. Price Mix involves different Pricing Methods,

Pricing strategies, Pricing Policies and Price Changes.
It involves decisions regarding the basic price of the 1 mark
product, discounts to customers, traders and credit
terms, terms of payment etc. so that the customers
perceive the price to be in line with the value of the
product.
OR
OR
Q. What is meant by ’Public Relations’?
Ans. Public Relations refer to a variety of programmes

to promote and protect a company’s image or its 1 mark
26

products in the eyes of the public.

had ₹50 lakhs as Equity Share Capital and a loan of
₹20 lakhs from Neon Bank. On earning a good
Neon Bank imposed restrictions on the payment of
dividend.
Identify the factor affecting dividend decision
which allows Neon Bank to impose restrictions on
the payment of dividend by ‘Venus Ltd.’.

business deal with a businessman from Spain, used
a word which was considered offensive in Spanish
when translated. This made the Spanish
communication.
8 6 4 Q. As a part of its comprehensive plan ‘Neerja Ltd.

decided to combine a new line of activity with its
existing footwear business.
Ans. Efficiency means doing the task correctly and 1 mark

with minimum cost.
OR OR

27

Ans. Functions to be performed at supervisory level of

management: (Any two)

  ½x2
workers.


 

Ans. Formal organisation has a rigid structure while an

Informal Organisation has a flexible structure. 1 mark
OR


designed to achieve a particular goal that once
achieved will not recur in the future.
½ mark
A standing plan is used for activities that occur +
regularly over a period of time. ½ mark
=
(or any other correct meaning) 1 mark
SECTION B
- 9 - Q. Explain any three features of controlling
function of management.
28

Ans. Features of controlling function of management:

(Any three) ½ mark
for the
(i) Controlling is a goal oriented function heading
+
(ii) Controlling is an all pervasive function ½ mark
for
(iii) Controlling is looking back explanation
=1x3
(iv) Controlling is a forward looking function =
3 marks
(v) Controlling is a continuous function
OR OR
Q. Explain ‘Critical Point Control’ with an

example.
Ans. Critical Point control
Critical Point Control is a technique of managerial

control which focuses on key result areas that are 2 marks for
critical to the success of an organisation. explaining
Critical
The key result areas are set as critical points since it is Point Control
neither economical nor easy to keep a check on each +
and every activity of the organisation. 1 mark for the
example
e.g. in a manufacturing organisation, an increase of 5 =
per cent in the labour cost may be more troublesome 3 marks
than a 15 per cent increase in postal charges.
(or any other correct example)
29



Decentralisation:
Meaning Delegation refers to Decentralisation refers
the downward to systematic delegation
transfer of authority of authority through all
from a superior to a the levels of
subordinate management and in all
the departments except
that which can be
exercised only at
central points.

because no is done at the discretion
individual can of the top management.
perform all tasks on
his own.
less freedom to take greater freedom of 3 marks
own decisions action
Scope It has a narrow It has a wide scope as it
scope as it is implies extension of
limited to superior delegation to the lowest
and his immediate level of management.
subordinate.
them more autonomy.
13 11 10 Steelone Enterprises is manufacturing high quality

steel utensils. The demand for steel is rising as
people are getting aware that plastic is not good for
health. This has led to increase in the production of
steel utensils. To encourage sales, Steelone
Enterprises declared a liberal credit policy, which
30

allows three months credit to its wholesale buyers.

Enterprises. State with reason, whether the factors
as identified above, will result in high or low
working capital requirement.

are:

(ii) Credit allowed
(i) Nature of business ½ mark for

Since Steelone Enterprises is a manufacturing identifying
business, it will require high/ more working capital as each factor
raw materials need to be converted into finished goods. +
½ mark for
(ii) Credit allowed each reason
more working capital because of higher debtors. 1x3
=
(iii) Scale of operations 3 marks
Since the business will be operating on a higher scale,
it will require high/ more working capital as the
quantum of inventory and debtors required will be
high.
9 12 - Q. State three features of directing function of

management.
Ans. Features of directing function of management:

(Any three)
(i) While other functions prepare a setting for action,

directing initiates action by people in the organisation
towards attainment of desired objectives. 1x3
=
(ii) Directing takes place at every level of 3 marks
management. Every manager from from top executive
31

to the supervisor performs the directing function.
(iii) Directing is a continuous process as it takes place

throughout the life of the organisation irrespective of
the people occupying managerial positions.
(iv) Directing flows from top to bottom through the

organisation hierarchy. Every manager can direct his
immediate subordinates and take instructions from his
immediate boss.
OR
Q. State any three measures to improve

communication effectiveness. OR
Ans. Measures to improve communication

effectiveness: (Any three)
(i) The manager should clarify the ideas before

communicating to the subordinates. The entire
problem should be studied in depth, analysed and
stated in such a manner that it is clearly conveyed to
the subordinates.
(ii) The manager should adjust his communication

according to the needs and understanding level of the
subordinates.
(iii) The manager should consult others before

developing a plan for communication. Participation
and involvement of subordinates may help to gain 1x3
ready acceptance and willing co-operation from them. =
3 marks
(iv) The manager should be aware of the languages,
tone and content of the message so that it does not
offend the sentiments of the listeners.
(v) The manager should know the interests and needs

of the people with whom the communication is being
done so that he/ she can convey things of help and
value to listeners.
32

(vi) The manager should ensure proper feedback by

asking questions regarding the message conveyed.
(vii) The manager should communicate for present as

well as future goals of the enterprise.
(viii) The manager should do a regular follow up and

review of the instructions given to the subordinates.
(ix) The manager should be a good listener as patient

and attentive listening can solve half of the problems.
(If an examinee has given only the heading, ½ mark

for each heading should be awarded)
10 13 11 Roasted Coffee Corporation is a coffeehouse chain

operating in 7 states of India. Through its effective
organisational structure, it has grown despite
pressure from competitors in the national market.
department, Supply chain management and
logistics department, Brand management
department and Sales department.
This structure has facilitated operational efficiency,
as employees became specialists within their own
realm of expertise. They could be imparted
specialised training as the focus was on limited
range of skills.
Coffee Corporation. Also state the three advantages
of this structure other than those discussed in the
above paragraph.
Ans. Functional Structure

1 mark
structure:
1x2
(a) Occupational specialisation since emphasis is =
placed on specific functions. 2 marks
=
33

(b) Control and coordination within a department 1+2

because of similarity in the tasks being performed. =
3 marks
(c) Different functions would be getting due attention.
(d) Lower cost because of minimal duplication of

effort.
SECTION C
consulting company with 45,000 employees serving
over 600 clients in 23 countries. Its Chief Executive
Officer, Mr Neil Suman guided the company
through two decades of diversification and growth
to emerge as one of the leading Indian companies in
the software industry. The company has set
standards in ensuring the best training
opportunities for its employees.

structured training program offered to all recruits
of varied backgrounds to be trained on essential
behavioural and technical skills that prepares them
to work in live customer projects. These recruits
are hired from universities and management
institutes for technical, professional as well as
managerial jobs. It is to help the new employees in
settling down quickly into the job by becoming
familiar with the people, the surroundings, the job
and the business.
(a) Identify the external sources of recruitment
used by the company to hire new employees.
company to train employees selected by the source
of recruitment identified in part (a)
(c) State two ways in which the Project Readiness
Program can benefit Xeno Ltd.
1 mark for
identifying
the external
Ans. (a) Campus Recruitment source of
recruitment
34

(b) Induction Training +

[½ mark for
It is a type of training given to help the new employee identifying
in settling down quickly into the job by becoming method of
familiar with the people, the surroundings, the job and training
the business. +
½ mark for
its explanation
=
(c) Ways in which Project Readiness Program can 1 mark]
benefit Xeno Ltd.: (Any two) +
(i) Avoiding wastage of efforts and money as training

is systematic learning, better than hit and trial
methods.
(ii) Enhancing employee productivity both in terms of

quantity and quality leading to higher profits. 1x2
=
(iii) Equipping the future manager to take over in an 2 marks
emergency.
=
(iv) Reducing employees’ turnover as it increases
(v) Helping the organisation in obtaining effective

response in a fast changing environment 1+1+2
=
4 marks
- 15 - Q. Explain any four functions of ‘Financial

Market’.
Ans. Functions of Financial Market: ½ mark

for the
(a) Mobilisation of savings and channelising them into heading
most productive use. +
½ mark
(b) Facilitating price discovery. for its
explanation
(c) Providing liquidity to financial assets =
1x4
35

(d) Reducing the cost of transactions. =

4 marks
OR
OR
Q. Explain any four protective and any four
regulatory functions of Securities and Exchange
Board of India.
Ans. Protective functions of Securities and Exchange

Board of India:
(a) It prohibits fraudulent and unfair trade practices ½ x4

like misleading statements, manipulations, price =
rigging etc. 2 marks
(b) It controls insider trading and imposes penalties for

such practices.
(c) It undertakes steps for investor protection.
(d) It promotes fair practices and code of conduct in

securities market.
Regulatory functions of Securities and Exchange

Board of India: (Any four):
(a) It registers brokers and sub brokers and other ½ x4

players in the market. =
2 marks
(b) It registers collective investment schemes and
mutual funds.
(c) It regulates stock brokers, portfolio exchanges,

underwriters and merchant bankers.
(d) It regulates takeover bids by companies.
(e) It calls for information by undertaking inspection,

conducting enquiries and audit of stock exchanges and
intermediaries.
36

(f) It levies fee or other charges for carrying out the

purposes of the SEBI Act, 1992.
(g) It performs and exercises such powers under

Securities Contract (Regulation) Act 1956 as may be =
delegated by the government of India. 2+2
=
(If an examinee has given only the heading, ½ mark 4 marks
for the heading should be awarded)
19 16 18 Q. Aditya Khosla, the Managing Director of

‘D.L.W. Ltd.’ and Rajesh Puri, the Finance
Manager were discussing about the avenues of
investing the idle funds of the company. Aditya
Khosa was of the opinion that money should be
invested in the capital market whereas Rajesh Puri,
being more conservative, feels that it would be
better if the investment was made in money market.
get good returns. Ultimately it was decided to invest
the idle funds in the capital market.
buy?
reason.
Ans. (a) Shares, debentures, bonds

1 mark
+
(b) Capital market is expected to give a better return in
a buoyant economy as:
[1 mark for
(i) The securities are held for a longer duration each reason
=
(ii) There is a scope of earning capital gains on shares. 1x2
= 2 marks]
37

(c) Securities in capital market are riskier with respect +

to return and principal repayment. Issuing company
may fail to perform as promoters may defraud
investors. 1 mark
=
1+2+1
=
4 marks
- 17 - Q. State the following functions of marketing:
(i) Gathering and analysing market information
(ii) Marketing planning
Ans. (i) Gathering and Analysing Market

Information
- This involves making an analysis of the available

opportunities and threats as well as the strengths and
weaknesses of the organisation which helps in
deciding the opportunities to be pursued by it. 2 marks
- Market information to gather customer’s views and

opinions is collected through interactive sites on the
internet, SMS etc. +
(ii) Marketing Planning
- This involves development of marketing plans to 2 marks

achieve the marketing objectives of the organisation.
- A complete marketing plan will include important =

aspects like increasing the level of production, 2+2
promotion of the products, etc. =
4 marks
OR OR
Q. Physical distribution includes some components

for physically moving the goods from
manufacturers to the consumers. Name and give
38

the meaning of these components.
Ans. Components of physical distribution:

½ mark
(a) Accurate and speedy order processing to ensure for naming
that goods reach the customers in time, in the right each
quantity and specifications. component
+
(b) Transportation to carry the goods and raw materials ½ mark for
from the point of production to the point of sale. the meaning
of each
(c) Warehousing for storing and assorting products to component
create time utility. The firm has to strike a balance =
between the cost of warehousing and the level of 1x4
customer service.
=
(d) Inventory control to decide the level of inventory 4 marks
and to maintain a balance in respect of cost and
customer satisfaction.
14 18 19 Damini D’souza took over the reins of ‘Kinsa

Retail’ as its Managing Director in India. Kinsa
Retail with its headquarters at Japan has been in
retail business for the last 40 years. It has regional
offices in many countries with each regional office
taking care of the shops in that particular region.
As it is a large organisation, the regional officers
have been given the powers to decide and spend
funds sanctioned to them by the headquarter for
the welfare of the customers of their region.
Kinsa Retail wants the highest possible standards of
ethical conduct being followed for which a code of
conduct is in place for putting values into practice.
All employees as well as Board members are
required to act in accordance with the highest
39

Ans. Principles of General management being

followed by Kinsa Retail are:
(i) Discipline which refers to obedience to 1 mark each

organizational rules and employment agreement that for identifying
are necessary for the working of the organization. It each principle
requires good superiors at all levels, clear and fair +
agreement and judicious application of penalties. 1 mark
for each
explanation
(ii) Centralisation and Decentralisation which =
suggests that there is a need to balance subordinate 2x2
involvement through decentralisation with managers =
retention of final authority through centralisation. 4 marks
16 19 14 Tapas Sen, a manufacturer, redesigned his existing

soup making machine into a small portable
machine. For selling the machine, he entered into
an agreement with his uncle who agreed to finance
the project with a 50% share in the profits. To
launch the machine, they decided to start with
direct channels of distribution. They named the
venture ‘Cup-a-Soup’. In the first year, their main
objective was profit maximisation. They appointed
30 trained salesmen for distribution of the machine
across the country. They offered incentives and
awards to salesmen for achieving their sales targets.
(a) Identify the marketing philosophy used by
‘Cup-a-soup’.
Soup’.
‘Cup-a-soup’ would have kept in mind.
1 mark for
identifying the
Ans. (a) Product concept
marketing
philosophy
(b) Personal Selling. +
1 mark for
the tool of
40

(i) A good salesman should have physical qualities promotion

such as pleasing and charming personality which
creates a good impression on the customers.
(ii) He/ she should be social, humble and cooperative. +

presence of mind, good memory and initiative.
1x2
(iv) He/ she should have full and updated knowledge =
about the product he is selling. 2 marks
(v) He/ she should have good communication skills.

=
(vi) He must be honest and sincere in performing his 1+1+2
duty. =
4 marks
(vii) A salesman who is polite and courteous generates
buyer’s confidence
(viii) The salesman should have the convincing power

to develop the belief in a customer that the product he
is buying is the best.
SECTION D
22 20 20 Handsen is the CEO of Newcastle Enterprises, one
of the world’s most successful companies. His
success stories have been well documented. He
chooses highly motivated and capable managers
who can perform their tasks creatively and
adequately without his help. He allows the group
members to work on their own tasks and resolve
issues themselves.
unfavorable situation. He does not use power unless
it is absolutely essential. He even allows mistakes to
happen for his people to learn from them. He
supports them and supplies them the required
information to complete the assigned task.
(a) Identify the leadership style adopted by
Handsen.
41

(b) With the help of a diagram, explain the other

two leadership styles based on the use of authority.
Ans. (a) Laissez Faire leadership style
(b) The other two leadership styles based on the use of 1 mark
authority are:
(i) Autocratic leadership style
A ½ mark
½ mark
B C D
+
A is the leader and B, C and D are the followers.
An autocratic leader gives orders and expects his

subordinates to obey those orders.
There is one-way communication with the 1 mark
subordinates who act according to the command given =
by the manager. 2 marks
(ii) Democratic leadership style
½ mark
½ mark
In the above diagram, A is the leader and B, C, D and

E are subordinates.
+
A democratic leader develops action plans and makes
decisions in consultation with his subordinates. Such a
leader recognises that people perform best if they set
42

their own objectives. 1 mark

=
1+2+2
=
5 marks
- 21 - Q. Explain any five characteristics of management.
Ans. Characteristics of management: (Any five)

½ mark for the
(i) Goal oriented process heading
+
(ii) Group activity ½ mark for
explanation
(iii) Intangible force
=
(iv) Pervasive 1x5
=
(v) Multi- dimensional 5 marks
(vi) Continuous process
(vii) Dynamic function.
(If an examinee has not given the headings as above

but has given the correct explanation, full credit be
given)
OR
OR
Q. Explain the various objectives which
management seeks to achieve.
Ans. Management seeks to achieve certain objectives. ½ mark

The objectives are: for naming
the main
objectives
(i) Organisational objectives. (1/2 x3)
=1½
(a) Survival +
1½ mark
(b) Profit for
explaining
(c) Growth organisational
43

objective
+
(ii) Social objectives. 1 mark
each for
explaining
(iii) Personal objectives. social and
personal
objective
=
1 ½+1 ½
+
1+1
=
5marks

available online and compared the prices so that an
intelligent and wise choice could be made. Then she
went to a nearby market to buy the sandwich
toaster. Being an informed consumer, she looked
for the correct standardisation mark. The
shopkeeper showed her different toasters but was
quoting higher price than the price she had checked
online. After negotiating with the shopkeeper, she
was able to bring the price down. As a responsible
consumer, she asked for a cash memo against the
amount paid for the product and took the toaster
home. On opening the package, she found an
instruction booklet, which she read carefully. Then
she followed all instructions step by step and made
nicely toasted paneer sandwiches for her family.
(a) State the consumer responsibilities, which have
been discharged by Suman besides asking for a
cash memo.
above case.

discharged by Suman besides asking for a cash memo:
(Any three)
44


available in the market and made an intelligent and
wise choice. 1x3
=
(ii) She bought standardised product as standardistion 3 marks
provides quality assurance.
(iii) She learnt about the risks associated with product

and followed manufacturer’s instructions
½ mark for
identifying the
(b) Rights discussed in the above case are: right
+
(i) Right to choose ½ mark for its
explanation
(ii) Right to be informed 1x2
=
(iii) Right to safety 2 marks
=
3+2
=
5 marks
SECTION E
customs and traditions. Crafts are used not only in
the country by craftsmen in Rajasthan, Gujarat
and Assam but are also exported to USA, Germany,
UK and France. The volume of exports and imports
give India an advantage in balance of payments and
the much needed foreign exchange reserves. The
Prime Minister desires that the handicraft industry
should be expanded by linking it with technology.
process, ensuring durability and adapting
innovations.
Quoting the lines from the above para, explain four

dimensions of the business environment.
45

India’s craft heritage continues because if its customs

and traditions ½ mark for
naming each
Social Environment includes social forces like custom dimension
and traditions, values, social trends and society’s +
expectation from business. ½ mark for its
explanation
+
(b) Economic environment ½ mark for
quoting the
The volume of exports and imports give India an line
advantage in balance of payments and the much =
needed foreign exchange reserves 1½x4
=
Economic environment refers to factors like interest 6 marks
rates, inflation rates and changes in disposable income
of people etc. which have an impact on business
enterprise.
The Prime Minister desires that the handicraft industry

should be expanded by linking it with technology
Political environment includes political conditions

such as general stability and peace in the country and
specific attitudes that elected government
representatives hold towards business.

process, ensuring durability and adapting innovations
Technological Environment of business includes
46

forces relating to scientific improvements and

innovations which provide new ways of producing
goods and services and new methods and techniques of
operating a business.
- 24 - Q. Explain the various steps in the process of

‘Selection’.
Ans. Steps in the process of selection:

½ mark for
(i) Preliminary screening naming each
(ii) Selection tests and Employment Interview step
(iii) Reference and background checks +
(iv) Selection decision ½ mark for
(v) Medical examination explanation
(vi) Job offer and Contract of employment =
1x6
(If an examinee has not combined the steps as =
above but has given all the correct steps, full credit 6 marks
should be given)
( ½ mark to be deducted if proper sequence has not

been followed)
OR OR
Q. Explain the steps in the ‘Process of Staffing’

function of management.
½ mark for
Ans. Steps in the process of staffing function of naming each
management: step
+
(i) Estimating Manpower requirements ½ mark for
(ii) Recruitment and Selection explanation
(iii) Placement and orientation =
(iv) Training and development 1x6
(v) Performance appraisal, Promotion and career =
planning 6marks
(vi) Compensation
(If an examinee has not combined the steps as

47

above but has given all the correct steps, full credit
should be given)

been followed)
23 25 25 Q. Saurabh Jain set up a telecom business in Nasik

‘ Ketone’ with an ambitious target of reaching out
to 90% of the Indian population within one year.
He chose this business on the belief that the demand
for data services will increase 4 times within the
next 2-3 years.
To fulfill such an ambitious target, he had to either
competition.
He assessed the proposals of different companies
vis-s-vis earnings per share, taxes, dividends paid
etc. and their future projections knowing fully well
that the projections may change if the country’s
The above paragraph discusses some of the steps of

one of the functions of management. By quoting the
lines from the above paragraph, explain these steps
in chronological order.

90% of the Indian population within one year’
Objectives may be set for the entire organisation and ½ mark for
each department or unit within the organisation. They naming each
specify what the organisation wants to achieve. step
+
(or any other suitable explanation) ½ mark for
quoting
(ii) Developing premises the line
48

+
‘He chose this business on the belief that the demand ½ mark
for data services will increase 4 times within the next for its
2-3 years’ explanation

about the future called premises. Assumptions are the 1½x4
base material upon which plans are to be drawn. =
6 marks

acquire an existing telecom business or collaborate or
go independent aggressively in the light of tough
competition’
As there may be many ways to achieve the objectives,

all the alternative courses of action should be
identified and thoroughly discussed.
‘He assessed the proposals of different companies vis-

s-vis earrings per share, taxes, dividends paid etc and
their future projections knowing fully well that the
projections may change if the country’s economic
The pros and cons of each alternative are weighed in

the light of the objective to be achieved, their
feasibility and consequences.

49

66/3/3
66 66 66 MARKING SCHEME – 2018-19
/1 /2 /3 66/3/3
SECTION A
- - 1 Q. What is meant by ‘Management of People’?
Ans. Management of people means dealing with

employees as individuals with diverse needs and
behaviour as well as dealing with individuals as a group
of people.
1 mark
OR
Q. What is meant by ‘Management of Operations’?
Ans. Management of Operations means managing a

production process which involves transforming inputs
into output for consumption.

had ₹50 lakhs as Equity Share Capital and a loan of
₹20 lakhs from Neon Bank. On earning a good
Neon Bank imposed restrictions on the payment of
dividend.
Identify the factor affecting dividend decision which
allows Neon Bank to impose restrictions on the
payment of dividend by ‘Venus Ltd.’.

business deal with a businessman from Spain, used a
word which was considered offensive in Spanish
when translated. This made the Spanish
communication.
50

8 6 4 Q. As a part of its comprehensive plan ‘Neerja Ltd.

decided to combine a new line of activity with its
existing footwear business.
Ans. Efficiency means doing the task correctly and with 1 mark
minimum cost.
OR OR

Ans. Functions to be performed at supervisory level of

management: (Any two)

  ½x2
workers.


 

Ans. Formal organisation has a rigid structure while an

51

Informal Organisation has a flexible structure. 1 mark
OR


designed to achieve a particular goal that once achieved
will not recur in the future.
½ mark
A standing plan is used for activities that occur +
regularly over a period of time. ½ mark
=
(or any other correct meaning) 1 mark
3 - 7 How does an organisation satisfy ‘Esteem Needs’ of

its employees? State.
Ans. Organisation satisfies ‘Esteem Needs’ of its

employees by giving job titles to the employees. 1 mark
4 2 8 Q. People think that it is the ‘Product’ only that can

be marketed. But something else can also be
1 mark
Ans. Place.
SECTION B
- - 9 Q. Explain any three points of importance of
controlling.
½ mark for
Ans. Importance of controlling (Any three): the heading
(i) Accomplishing organisational goals +
½ mark for
(ii) Making efficient use of resources explanation
=
(iii) Ensuring order and discipline 1x3
=
(iv) Improving employee motivation 3 marks
(v) Judging accuracy of standards

52

(vi) Facilitating co-ordination in action

given)
OR OR
Q. Explain ‘Management by Exception’ with the

help of an example.
Management by Exception
Management by Exception is a technique of managerial 2 marks for

control which involves identifying only significant explaining
deviations which go beyond the permissible limit and Management
bringing them to the notice of the management. by Exception
+
It is based on the belief that an attempt to control 1 mark for
everything results in controlling nothing. the
example
E.g.
If the plans lay down 2 per cent increase in labour cost =
as an acceptable range of deviation in a manufacturing
organisation, only increase in labour cost beyond 2 per 2+1
cent should be brought to the notice of the management.
However, in case of major deviation from the standard =
(say, 5 per cent), the matter has to receive immediate 3 marks
action of management on a priority basis.
(or any other correct example)
13 11 10 Steelone Enterprises is manufacturing high quality

steel utensils. The demand for steel is rising as
people are getting aware that plastic is not good for
health. This has led to increase in the production of
steel utensils. To encourage sales, Steelone
Enterprises declared a liberal credit policy, which
allows three months credit to its wholesale buyers.

53


Enterprises. State with reason, whether the factors
as identified above, will result in high or low
working capital requirement.

are:

(ii) Credit allowed
(i) Nature of business ½ mark for

Since Steelone Enterprises is a manufacturing business, identifying
it will require high/ more working capital as raw each factor
materials need to be converted into finished goods. +
½ mark for
(ii) Credit allowed each reason
more working capital because of higher debtors. 1x3
=
(iii) Scale of operations 3 marks
Since the business will be operating on a higher scale, it
will require high/ more working capital as the quantum
of inventory and debtors required will be high.
10 13 11 Roasted Coffee Corporation is a coffeehouse chain

operating in 7 states of India. Through its effective
organisational structure, it has grown despite
pressure from competitors in the national market.
department, Supply chain management and logistics
department, Brand management department and
Sales department.
This structure has facilitated operational efficiency,
as employees became specialists within their own
realm of expertise. They could be imparted
specialised training as the focus was on limited range
of skills.
Coffee Corporation. Also state the three advantages
of this structure other than those discussed in the
54

above paragraph.
Ans. Functional Structure

1 mark
structure:
1x2
(a) Occupational specialisation since emphasis is placed =
on specific functions. 2 marks
=
(b) Control and coordination within a department 1+2
because of similarity in the tasks being performed. =
3 marks
(c) Different functions would be getting due attention.
(d) Lower cost because of minimal duplication of effort.
11 - 12 Q. Explain any three factors affecting capital

budgeting decision of a company.
½ mark
for the
Ans. Factors affecting capital budgeting decision of a heading
company: +
½ mark
(a) Cash flows of the project for its
explanation
(b) Rate of return of the project. =
1x3
(c) Investment criteria. =
3 marks
OR OR
Q. Explain the twin objectives of financial planning. ½ mark

for the
Ans. Objectives of financial planning: heading
+
(i) To ensure availability of funds whenever required 1 mark
for its
(ii) To see that the firm does not raise resources explanation
unnecessarily =
55

1½x2
=
3 marks

Decentralisation:
Meaning Delegation refers to Decentralisation refers
the downward to systematic delegation
transfer of authority of authority through all
from a superior to a the levels of
subordinate management and in all
the departments except
that which can be
exercised only at central
points.

because no is done at the discretion
individual can of the top management.
perform all tasks on
his own.
less freedom to take greater freedom of 3 marks
own decisions action
Scope It has a narrow It has a wide scope as it
scope as it is limited implies extension of
to superior and his delegation to the lowest
immediate level of management.
subordinate.
them more autonomy.
SECTION C
16 19 14 Tapas Sen, a manufacturer, redesigned his existing
soup making machine into a small portable machine.
56

For selling the machine, he entered into an

agreement with his uncle who agreed to finance the
project with a 50% share in the profits. To launch
the machine, they decided to start with direct
channels of distribution. They named the venture
‘Cup-a-Soup’. In the first year, their main objective
was profit maximisation. They appointed 30 trained
salesmen for distribution of the machine across the
country. They offered incentives and awards to
salesmen for achieving their sales targets.
(a) Identify the marketing philosophy used by ‘Cup-
a-soup’.
Soup’.
‘Cup-a-soup’ would have kept in mind.
1 mark for
Ans. (a) Product concept identifying the
marketing
philosophy
(b) Personal Selling.
+
1 mark for
the tool of
(i) A good salesman should have physical qualities such promotion
as pleasing and charming personality which creates a
good impression on the customers.
(ii) He/ she should be social, humble and cooperative. +

presence of mind, good memory and initiative.
1x2
(iv) He/ she should have full and updated knowledge
=
about the product he is selling. 2 marks
(v) He/ she should have good communication skills.
=
(vi) He must be honest and sincere in performing his 1+1+2
duty. =
4 marks
(vii) A salesman who is polite and courteous generates
buyer’s confidence
57

(viii) The salesman should have the convincing power

to develop the belief in a customer that the product he is
buying is the best.
- - 15 Q. Explain the trading procedure on a stock

exchange.
½ mark for
Ans. Trading procedure on a stock exchange involves naming each
the following steps: step
+
(i) Selection of a broker ½ mark for
explanation
(ii) Opening demat account with Depository =
1x4
(iii) Placing the order
=
(iv) Executing the order and Settlement 4 marks

been followed)
Alternate answer
Trading procedure on a stock exchange involves the

following steps:
(i) Approach a registered broker and enter into an

agreement with him to open a trading account
(ii) Open a demat account with a Depository participant

for holding and transferring securities in demat form
and a bank account for cash transactions.
½ mark for
(iii) Place an order with the broker to buy or sell shares. each step
(iv) Executing the order by the broker. =
½x8
(v) Issue of a Contract Note containing details of
number of shares bought/ sold, the price, date and time =
of deal and brokerage charges.
4 marks
(vi) Delivery of shares sold or payment of cash for the
58

shares bought on the pay-in day.
(vii) Settlement of the deal on the pay-out day i.e. T+2

day when the exchange will deliver the shares or
payment to the broker. The broker will then make the
payment to the investor.
(viii) Delivery of shares and payment of cash by the

broker to the investor.
(If an examinee has not combined the steps as above

but has given all the correct steps, full credit should
be given)
OR
OR
Q. Explain any four objectives of establishing

Securities and Exchange Board of India.
Objectives of SEBI are:
(i) To regulate stock exchanges and the securities

industry to promote their orderly functioning.
(ii) To protect the rights and interests of investors, 1x4

particularly individual investors and to guide and
educate them.
(iii) To prevent trading malpractices and achieve a

balance between self regulation and statutory =
regulation.
(iv) To regulate and develop a code of conduct and fair 4 marks

practices by intermediaries like brokers, merchant
bankers etc., with a view to making them competitive
and professional.

consulting company with 45,000 employees serving
over 600 clients in 23 countries. Its Chief Executive
Officer, Mr Neil Suman guided the company
59

through two decades of diversification and growth to

emerge as one of the leading Indian companies in the
software industry. The company has set standards in
ensuring the best training opportunities for its
employees.

structured training program offered to all recruits of
varied backgrounds to be trained on essential
behavioural and technical skills that prepares them
to work in live customer projects. These recruits are
hired from universities and management institutes
for technical, professional as well as managerial
jobs. It is to help the new employees in settling down
quickly into the job by becoming familiar with the
people, the surroundings, the job and the business.
(a) Identify the external sources of recruitment used
by the company to hire new employees.
company to train employees selected by the source of 1 mark for
recruitment identified in part (a) identifying
(c) State two ways in which the Project Readiness the external
Program can benefit Xeno Ltd. source of
recruitment
+
Ans. (a) Campus Recruitment [½ mark for
identifying
method of
(b) Induction Training training
+
It is a type of training given to help the new employee ½ mark for
in settling down quickly into the job by becoming its
familiar with the people, the surroundings, the job and explanation
the business. =
1 mark]
+
(c) Ways in which Project Readiness Program can

benefit Xeno Ltd.: (Any two)
(i) Avoiding wastage of efforts and money as training is

systematic learning, better than hit and trial methods.
60

1x2
(ii) Enhancing employee productivity both in terms of =
quantity and quality leading to higher profits. 2 marks
(iii) Equipping the future manager to take over in an =

emergency.
(iv) Reducing employees’ turnover as it increases

1+1+2
(v) Helping the organisation in obtaining effective =
response in a fast changing environment 4 marks
- - 17 Q. State any four functions of labelling.
Ans. The various functions of labelling are: (Any four)
(i) It describes the product, its usage, cautions in use

etc. and specifies its contents
(ii) It helps in identification of the product or brand

through common identification information like name
and address of the manufacturer, net weight, 1x4
manufacturing date, maximum retail price etc. =
(iii) It helps in grading of products into different 4 marks

categories to indicate different features or quality of the
product.
(iv) It helps in promotion of products by attracting

attention and giving reasons for purchase as well as by
offering sales promotion scheme launched by
companies
(v) It provides information required by law e.g.

statutory warnings on products injurious to health,
safety warnings on hazardous or poisonous material
etc.

61

OR OR
Q. State any four factors determining the choice of

channels of distribution.
Ans. Factors determining the choice of channels of

distribution:
(i) Product related factors include nature of the product, 1x4

perishability, unit value and degree of complexity of the =
product.
4 marks
(ii) Company characteristics include financial strength
of the company and degree of control of the company
on channel members.
(iii) Competitive factors include the policy of the

company to go with or be different from the choice of
channel selected by the competitors.
(iv) Market related factors include size of market,

geographical concentration of potential buyers and
quantity purchased.
(v) Environmental factors include prevailing economic

conditions and legal constraints.

19 16 18 Q. Aditya Khosla, the Managing Director of ‘D.L.W.

Ltd.’ and Rajesh Puri, the Finance Manager were
discussing about the avenues of investing the idle
funds of the company. Aditya Khosa was of the
opinion that money should be invested in the capital
market whereas Rajesh Puri, being more
conservative, feels that it would be better if the
investment was made in money market.
62

get good returns. Ultimately it was decided to invest

the idle funds in the capital market.
buy?
reason.
1 mark
Ans. (a) Shares, debentures, bonds
+
(b) Capital market is expected to give a better return in [1 mark for

a buoyant economy as: each reason
=
(i) The securities are held for a longer duration 1x2
= 2 marks]
(ii) There is a scope of earning capital gains on shares.
(c) Securities in capital market are riskier with respect

to return and principal repayment. Issuing company 1 mark
may fail to perform as promoters may defraud investors.
=
1+2+1
=
4 marks
14 18 19 Damini D’souza took over the reins of ‘Kinsa Retail’
as its Managing Director in India. Kinsa Retail with
its headquarters at Japan has been in retail business
for the last 40 years. It has regional offices in many
countries with each regional office taking care of the
shops in that particular region. As it is a large
organisation, the regional officers have been given
the powers to decide and spend funds sanctioned to
them by the headquarter for the welfare of the
customers of their region.
Kinsa Retail wants the highest possible standards of
ethical conduct being followed for which a code of
conduct is in place for putting values into practice.
63

All employees as well as Board members are

required to act in accordance with the highest
Ans. Principles of General management being followed

by Kinsa Retail are:
1 mark each
(i) Discipline which refers to obedience to for
organizational rules and employment agreement that are identifying
necessary for the working of the organization. It each principle
requires good superiors at all levels, clear and fair +
agreement and judicious application of penalties. 1 mark
for each
explanation
(ii) Centralisation and Decentralisation which =
suggests that there is a need to balance subordinate 2x2
involvement through decentralisation with managers =
retention of final authority through centralisation. 4 marks
SECTION D
22 20 20 Handsen is the CEO of Newcastle Enterprises, one of
the world’s most successful companies. His success
stories have been well documented. He chooses
highly motivated and capable managers who can
perform their tasks creatively and adequately
without his help. He allows the group members to
work on their own tasks and resolve issues
themselves.
unfavorable situation. He does not use power unless
it is absolutely essential. He even allows mistakes to
happen for his people to learn from them. He
supports them and supplies them the required
information to complete the assigned task.
(a) Identify the leadership style adopted by Handsen.
(b) With the help of a diagram, explain the other two
leadership styles based on the use of authority.
64

Ans. (a) Laissez Faire leadership style
(b) The other two leadership styles based on the use of

authority are: 1 mark
(i) Autocratic leadership style
A
½ mark
½ mark
B C D
A is the leader and B, C and D are the followers. +

An autocratic leader gives orders and expects his
subordinates to obey those orders. 1 mark
There is one-way communication with the subordinates =
who act according to the command given by the 2 marks
manager.
(ii) Democratic leadership style
½ mark
½ mark
In the above diagram, A is the leader and B, C, D and E
are subordinates. +
A democratic leader develops action plans and makes
decisions in consultation with his subordinates. Such a 1 mark
leader recognises that people perform best if they set =
their own objectives. 1+2+2
=
5 marks
65

- - 21 Q. What is meant by management? State any four

functions of top level management.
Ans. Management is the process of getting things done 1 mark

with the aim of achieving goals effectively and
efficiently.
Functions of the top level of management: (any four)
1. To co-ordinate the activities of different departments.

1x4
2. To be responsible for welfare and survival of the =
organisation. 4 marks
=
3. To analyse the business environment and its 1+4
implications for the survival of the firm. =
4. To formulate overall organisational goals and 5 marks

strategies for their achievement.
5. They are responsible for all the activities of the

business and for its impact on the society.
OR
OR
Q. What is meant by ‘coordination’? State its

importance with the help of any four points.
Ans.
Co-ordination is the process by which a manager 1 mark
synchronises the activities of different departments
towards the achievement of a common goal.
Importance of Co-ordination:
(i) As the organisations grow in size, the number of
people employed by the organisation increases. Hence
coordination is needed to integrate their efforts and
activities.
(ii) Individuals differ in their habits of work, needs and 1x4

behaviour and may have their own individual goals. =
66

Coordination is necessary to harmonize individual goals 4 marks

and organisational goals.
=
(iii) Functions of an organisation are divided into 1+4
departments, divisions and sections like finance, =
production, marketing etc. The activity of each 5 marks
department needs to be focused on attainment of
common organisational goals. Coordination helps in
linking the activities of various departments.
(iv) Modern organisations have high degree of

specialisation. Specialists usually think that they only
are qualified to evaluate, judge and decide and do not
take advice from others leading to conflict.
Coordination helps in reconciling their differences.
(If the examinee has stated all the above points in the
following three headings (i) Growth in size;
(ii) Functional Differentiation
(iii) Specialisation, full credit is to be given)

available online and compared the prices so that an
intelligent and wise choice could be made. Then she
went to a nearby market to buy the sandwich
toaster. Being an informed consumer, she looked for
the correct standardisation mark. The shopkeeper
showed her different toasters but was quoting higher
price than the price she had checked online. After
negotiating with the shopkeeper, she was able to
bring the price down. As a responsible consumer,
she asked for a cash memo against the amount paid
for the product and took the toaster home. On
opening the package, she found an instruction
booklet, which she read carefully. Then she followed
all instructions step by step and made nicely toasted
paneer sandwiches for her family.
(a) State the consumer responsibilities, which have
been discharged by Suman besides asking for a cash
memo.
above case.
67


discharged by Suman besides asking for a cash memo:
(Any three)

available in the market and made an intelligent and wise
choice.
(ii) She bought standardised product as standardistion

provides quality assurance.
1x3
(iii) She learnt about the risks associated with product =
and followed manufacturer’s instructions 3 marks
½ mark for
identifying
(b) Rights discussed in the above case are: the right
+
(i) Right to choose ½ mark for
its
(ii) Right to be informed explanation
1x2
(iii) Right to safety =
2 marks
=
3+2
=
5 marks
SECTION E
customs and traditions. Crafts are used not only in
the country by craftsmen in Rajasthan, Gujarat and
Assam but are also exported to USA, Germany, UK
and France. The volume of exports and imports give
India an advantage in balance of payments and the
much needed foreign exchange reserves. The Prime
Minister desires that the handicraft industry should
68

be expanded by linking it with technology. Focus

should be on changing the manufacturing process,
ensuring durability and adapting innovations.
Quoting the lines from the above para, explain four

dimensions of the business environment.
India’s craft heritage continues because if its customs

and traditions
½ mark for
Social Environment includes social forces like custom naming each
and traditions, values, social trends and society’s dimension
expectation from business. +
½ mark for
its
(b) Economic environment explanation
+
The volume of exports and imports give India an ½ mark for
advantage in balance of payments and the much needed quoting the
foreign exchange reserves line
=
Economic environment refers to factors like interest 1½x4
rates, inflation rates and changes in disposable income =
of people etc. which have an impact on business 6 marks
enterprise.
The Prime Minister desires that the handicraft industry

should be expanded by linking it with technology
Political environment includes political conditions such

as general stability and peace in the country and specific
attitudes that elected government representatives hold
towards business.
69


process, ensuring durability and adapting innovations
Technological Environment of business includes forces

relating to scientific improvements and innovations
which provide new ways of producing goods and
services and new methods and techniques of operating a
business.
- - 24 Q. Describe any six non-monetary incentives that

are used to motivate the employees to improve their
performance.
Ans. Non-monetary incentives (Any six):
(i) Status.
It means ranking of positions in the organisations. The
authority, responsibility, rewards, recognition etc of a
job indicate the status given to a person.
(ii) Organisational climate.

It indicates the characteristics which describe the
organisation and distinguish one organisation from
another. The positive measures regarding characteristics
like individual autonomy, reward orientation develop
better organisational climate.
(iii) Career advancement opportunity.

It means providing an opportunity to employees to
improve their skills to be promoted to higher level of
jobs. Appropriate skill development programmes and OR
sound promotion policy provide career advancement
opportunity to the employees.
(iv) Job enrichment.

It is concerned with designing jobs that include greater
variety of work content and provide the opportunity for
personal growth and a meaningful work experience.
70

(v) Employees recognition programme.

It means acknowledging and appreciating the work
performed by the employees to motivate them to
perform at higher levels.
½ mark for
(vi) Job security. the heading
It means providing stability y about the future income +
and work to the employees so that they do not feel ½ mark for
worried on these aspects and work with greater zeal. explanation
=
(vii) Employee participation. 1x6
It means involving employees in decision making of =
the issues relating to them. 6 marks
(viii) Employee empowerment.

It means giving more autonomy and powers to the
subordinates to make them feel that their jobs are
important.

OR
Q. ‘The functions and performance of the supervisor

are vital to an organisation because he is directly
related with the workers whereas other managers
have no direct touch with bottom level workers.’ In
the light of this statement, explain any six functions
of a supervisor.
Ans. Functions of the supervisor:(Any six)
(i) Maintains day to day contact
(ii) Links the workers and the management
(iii) Helps in maintaining group unity
(iv) Ensures performance of work
(v) Provides on the job training
71

(vi) Builds high morale amongst the workers
(vii) Gives feedback to the workers

given)
23 24 25 Q. Saurabh Jain set up a telecom business in Nasik ‘

90% of the Indian population within one year. He
chose this business on the belief that the demand for
data services will increase 4 times within the next 2-3
years.
To fulfill such an ambitious target, he had to either
competition.
He assessed the proposals of different companies vis-
s-vis earnings per share, taxes, dividends paid etc.
and their future projections knowing fully well that
the projections may change if the country’s
The above paragraph discusses some of the steps of

one of the functions of management. By quoting the
lines from the above paragraph, explain these steps
in chronological order.

90% of the Indian population within one year’ ½ mark for
naming
Objectives may be set for the entire organisation and each step
each department or unit within the organisation. They +
specify what the organisation wants to achieve. ½ mark for
quoting the
(or any other suitable explanation) line
72

+
(ii) Developing premises ½ mark for
its
‘He chose this business on the belief that the demand explanation
for data services will increase 4 times within the next 2-
3 years’ =
1½x4
about the future called premises. Assumptions are the 6 marks
base material upon which plans are to be drawn.

acquire an existing telecom business or collaborate or
go independent aggressively in the light of tough
competition’
As there may be many ways to achieve the objectives,

all the alternative courses of action should be identified
and thoroughly discussed.
‘He assessed the proposals of different companies vis-s-

vis earrings per share, taxes, dividends paid etc and
their future projections knowing fully well that the
projections may change if the country’s economic
The pros and cons of each alternative are weighed in the

light of the objective to be achieved, their feasibility
and consequences.

73

74

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Roasted Coffee Corporation is a coffeehouse chain operating in seven

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Xeno Ltd. is a global information technology consulting company with

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Suman wanted to purchase a sandwich toaster. She checked about the

(a) State any two responsibilities, which have been discharged by

Explain any five points which highlight the importance of management.

Explain any five features of ‘Co-ordination’.

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Handsen is the CEO of ‘Newcastle Enterprises’, one of the world’s most

He intervenes, but only when needed to correct an unfavorable situation.

(a) Identify the leadership style adopted by Handsen.

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-Strictly Confidential: (For Internal and Restricted Use Only)

2. Evaluation is to be done as per instructions provided in the marking scheme. It should

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Ans. Efficiency means doing the task correctly and 1 mark

(or any other correct meaning)

Q. State any two functions to be performed at

Ans. Functions to be performed at supervisory level

(a) To oversee the efforts of the workforce.

(c) To ensure that the quality of output is maintained

(d) To ensure that safety standards are maintained .

2 8 6 Q. Differentiate between Formal organisation and

Ans. Formal organisation has a rigid structure while

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Q. Differentiate between ‘Single Use Plan’ and OR

Ans. Single use plan is a one time plan specifically

(or any other correct meaning)

3 - 7 How does an organisation satisfy ‘Esteem Needs’

Ans. Organisation satisfies ‘Esteem Needs’ of its

4 2 8 Q. People think that it is the ‘Product’ only that

5 3 - Q. Give the meaning of ‘Price’ as an element of

Ans. Price Mix involves different Pricing Methods,

Q. What is meant by ’Public Relations’?

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Ans. Public Relations refer to a variety of

6 4 2 Q. As a part of its capital structure, ‘Venus Ltd.’

Ans. Contractual constraints. 1 mark

7 5 3 Q. Mark Nar, a Latin American while closing a

Ans. Badly expressed message. 1 mark

8 6 4 Q. As a part of its comprehensive plan ‘Neerja

Ans. Strategy. 1 mark

Ans. Features of directing function of management:

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(i) While other functions prepare a setting for action,

(iii) Directing is a continuous process as it takes

(iv) Directing flows from top to bottom through the