Professional Documents
Culture Documents
MARKING SCHEME
13 B, Cost of Debt 1
14 B, Unique order code 1
15 D, Physical Distribution 1
16 a. Stock Exchange provides liquidity to newly issued securities. 1
17 D, Societal Concept 1
18 A. )Product 1
19 A. It is personal form of communication 1
20 B. Financial Planning 1
21 (a) Top level ( 1 Mark ) 3
(b) Any two functions performed by top level management I mark for
each correct function
22 1. Internship 3
2. Vestibule school
3. Apprenticeship
(1 Mark each)
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5. Judging accuracy of standards
6. Facilitates coordination in action (any three points) Half mark for
heading and half mark for correct explanation)
24 1. Economic barometer 3
2. Pricing of securities
3. Safety of transactions
4. Liquidity (any three function with correct explanation 1 Mark each)
Or
28 1. Nature of business 4
2. Scale of operation
3. Technique of operation
4. Technology upgradation
5. Growth prospectus
6. Diversification
7. Availability of finance and leasing facility
8. Level of collaboration (explain any four with correct explanation 1
mark each)
OR
1. Cash flow position
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2. Interest coverage ratio
3. Return on investment
4. Cost of debt
5. Tax rate
6. Cost of equity
7. Floatation cost
9. Risk consideration (explain any four with correct explanation 1 mark
each)
29 1. Financial planning 4
2. Objectives of financial planning
1. To ensure availability of funds
2. To see that firm does not raise resources unnecessarily
3. It provides a link between investment and financing decision
4. It helps in avoiding business shocks and surprises ( 1 mark for
concept and three mark each for correct objectives)
30 Right to information : 4
According to this consumer has the right to information about the
quality,quantity , purity,standard and price of product.
Right to be heard :
According to this right the consumer has the right to represent himself or
to be heard. (2+2)
31 (a) Cooperation not individualism 2 marks with meaning 6
(b) 1. Science not rule of thumb ( 2 Marks)
2. Harmony not discord( 2marks )
Or
2 marks for each correct principle explained
32 Importance of planning 6
1. Planning provides direction
2. Planning reduces the risk of uncertainties
3. Planning reduces overlapping and wasteful activities
4. Planning promotes innovative ideas
5. Planning facilitates decision making
6. Planning establishes standard for controlling (! Mark each with Correct
explanation)
OR
(a) Planning
(b) Steps involved are
1. Setting objectives
2. Developing premises
3. Identifying alternative courses of action
4. Evaluating alternatives
5. Selecting an alternatives
6. Implementing the plan
7. Follow-up action( 1 Marks for concept planning and 5 marks for
correct points of process explained)
33 (a) Decentralisation 6
(b) Importance of Decentralisation
1. Relief to the top management
2. Initiative amongst subordinates
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3. Talent for the future
4. Growth
5. Decision making
6. Control( 1 mark for concept decentralization and 1 mark each for 5
correct importance of decentralization)
34 (a) The companies use all tools at the same time because of the nature of 6
market, nature of product, promotion budget and objectives of promotion
being different at different times.
(b) The most commonly used non-personal tool of promotion which is
paid for by the marketer is advertising. It is a paid and non-personal form
having an identified sponsor to promote an idea.
(c) The tools of promotion used are:
1. Public relations
2. Advertisements
3. Personal selling
4. Sales promotion ( 2 Marks for each point)
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