KENDRIYA VIDYALAYA SANGATHAN, KOLKATA REGION

MARKING SCHEME
BUSINESS STUDIES (054) (SET – 1)
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1. All-pervasive (1 mark for correct feature)

2. Principles of management do not provide a ready-made solution to all managerial problems as they are
broad and general guidelines to managerial decision-making. Real business situations are very complex
and dynamic. ( 1 mark)
3. Working Capital Decision. (1 mark)
4. ‘Organizing’ function of management. (1 mark)
5. If deviations cannot be controlled, it may sometimes require resetting of standards. (or any other
suitable answer) (1 mark)
6. Opportunities refer to the positive changes in external factors that will help a firm to improve its
performance. (1 mark)
7. Controlling is said to be a continuous activity because it involves a constant review of actual
performance in the light of standards set and taking corrective actions, if required. (1 mark)
8. Such barriers are known as Semantic Barriers. (1 mark)
9. (a) ‘Planning’. (1 mark)
(b) Steps involved in the process of planning (other than Setting Objectives are : (1 mark)
i) Establishing planning premises
ii) Identifying alternative courses of action.
(c) Planning reduces overlapping and wasteful activities. Hence, efficient utilization of resources is
achieved through proper planning. (1mark)
10. Apprenticeship Training/Programme. (1 mark) and Correct explanation (2 marks)
11. Financial management involves :
(a) Decisions pertaining to procurement of long-term and short-term funds and identifying the
different sources of finance.
(b) Procuring such funds at minimum cost and at the same time keeping the risk associated with such
procurement under check.
(c) Ensuring availability of enough funds whenever required as well as avoiding idle funds.
(d) Utilization of funds in such a manner that the return from such investment exceeds the cost of
procurement.
12. Policy : It is a guiding principle established by the company to govern actions, usually under repetitive
conditions. (1 mark)
Rule : It is a guide to action. It specifies what is to be done and what is not to be done, thus leaving the
concerned person with no discretion. (1 mark)
Any one point of difference (1 mark)
13. Delegation refers to downward transfer of authority from a superior to his subordinate.
Importance of Delegation of Authority :
1. Basis of Management Hierarchy
2. Effective Management
3. Motivating the Subordinates
4. Development of Subordinates
5. Facilitation of Growth
6. Effective Coordination. (1 mark each for any three points with explanation)
14. The company can fulfil the order by recruiting temporary staff as it is a short-term phenomenon. There
are various methods of external recruitment which a company may adopt. These are :
1. Recommendations of existing.
2. Recruitment at factory gate
 3. Recruitment through labour contractors and agents
4. Recruitment through employment exchanges. (1 mark for each)
15. (a) Economic Environment
(b) Social Environment
(c ) Technological Environment
(d)Legal Environment (1 mark for each correct answer)
16. (a) Controlling. (1 mark)
(b) The two steps undertaken by Mr. Sharma in the controlling process are : (2 marks)
i) Ascertaining deviation
ii) Analysing and taking corrective measures
(c ) Values are : i) discipline ; and
ii) Sensitivity towards environment by saving resources. (1 mark)
17. (a) Rajan has ignored the following values : (i) Recognition ; (ii) Honesty (2 marks)
(b) The adverse effects on Anjan could be : (2 marks)
(i) Anjan may stop giving his ideas as he knows his efforts would not be recognized.
(ii) He may start looking for a new job and leave the organization.
18. Packaging refers to wrapping, compressing, filling or crating or putting the products in bags, bottles,
cans and barrels or placing them in suitable packets. (1 mark)
Functions of Packaging :
(a) Product Protection
(b) Product Identification
(c) Facilitating Use of Product
(d) Product Promotion (1 mark for each function)(any three)
19. ‘Divisional Organisation Structure’ would suit the requirement of such an organization. Reasons are :
1. This organization is dealing in different products and in divisional structure all activities associated
with one product line can be easily grouped, integrated and coordinated.
2. Performance of individual product can be easily assessed
3. It leads to product specialization.
(1 mark for identifying the structure and 3 marks for correct reasons)
20. Equity Shares (1 mark)
Any four merits of equity share capital over the debenture capital (1 mark for each merit)
OR
Debentures (1 mark)
Any four merits of debenture over equity share capital (1 mark for each merit)
(Student may have any of the opinions)
21. (a) Characteristics of management that have helped Vishal to achieve the targets :
i) Management is Goal-Oriented
ii) Multi-Dimensional
iii) Group Activity (3 marks)
(b) Two values : (i) Fair remuneration ; and (ii) Team work (2 marks)
22. Factors affecting price determination :
i) Product Cost
ii) Utility and Demand of the Product
iii) Market competition
iv) Government and Legal Regulation
v) Pricing Objectives
vi) marketing Techniques Used (any 5 factors) or (any other suitable factors)
(½ mark each for correct factor and ½ mark each for correct explanation)
23. (a) (i) Offer through prospectus ; (ii) e-IPO ; (iii) Right Issue (2 mark)
 (b) Private Placement (with any two benefits) (3 marks)
(c ) Private Placement (1 mark)
24. Measures to overcome barriers to effective communication :
i) Clarify the ideas before communication
ii) Communicate according to the need of receiver
iii) consult others before communicating
iv) Be aware of language, tone and content of message
v) convey things of help and value to listeners
vi) Ensure proper feedback
vii) Communication for present as well as future
viii) Follow-up communication
ix) Be a good listener (Any six measures) (1 mark for each measure)
25. Reliefs available :
i) He can get the product replaced with a new packet, free from any defect
ii) Can get the cost paid by him refunded
iii) Can get compensation for any loss or injury suffered by her for the negligence of the opposite
party
iv) Can force the shopkeeper not to offer hazardous product for sale
v) Can get manufacture of hazardous goods stopped and prevent the manufacturer from
offering services which are hazardous in nature.
vi) He can claim punitive damages. (1 mark for each point)