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Class 12 - Business Studies

Sample paper - 04 (2024-25)

Maximum Marks: 80
Time Allowed: : 3 hours

General Instructions:

1. This question paper contains 34 questions.

2. Marks are indicated against each question.
3. Answers should be brief and to the point.
4. Answers to the questions carrying 3 marks may be from 50 to 75 words.
5. Answers to the questions carrying 4 marks may be about 150 words.
6. Answers to the questions carrying 6 marks may be about 200 words.
7. Attempt all parts of the questions together.

1. Garima is working in a private sector bank. One of her key function relates to the formulation of the overall
organisational goals and strategies of the bank. Identify the level of management at which she is working?
a) Top Level
b) Lower Level
c) Middle Level
d) Floor level
2. Which of the following statements is Not true for primary market?
a) There is no fixed Geographical location.
b) Only buying of securities takes place, securities cannot be sold there.
c) It directly promotes capital formation.
d) Prices are determined by demand and supply of the security.
3. Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organisations
interest. Identify the limitation of planning highlighted above.
a) Planning reduces creativity
b) Planning may not work in a dynamic environment
c) Planning leads to rigidity
d) Planning does not guarantee success
4. ________ refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial charges
like interest.
a) Capital structure
b) Earning per share
c) Trading on equity
d) Return on investment
5. Keya Ltd. is a large organisation manufacturing a popular brand of desi ghee and supplying it to various states of India.
They manufacture 10,000 litres of desi ghee every day and pack in cartons of 250 ml, 500 ml and 1 litre sizes. The
production manager ensures that one out of every ten cartons of each size is checked for quality control everyday.
The step of the controlling process discussed in the above para is:
a) Setting performance standards
b) Analysing deviations

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c) Comparison of actual performance with standards
d) Measurement of actual performance
6. The following pictorial presentation highlights violation of one of the principles of management.

Identify the principle not followed in the given picture.

a) Cooperation not individualism
b) Subordination of individual interest to general interest
c) Initiative
d) Equity
7. At present only two depositories are registered with SEBI ________.
a) NSDL and HDFC
b) NEFT and TDS
c) NSDL and ABSL
d) NSDL and CDSL
8. Many reputed business organisations keep a database of unsolicited applicants in their offices. A list of such job seekers
can be prepared and screened to fill the vacancies as they arise. The method of recruitment described is:

a) Campus recruitment
b) Direct recruitment
c) Transfers
d) Casual callers
9. Which of the following statement is false?
a. If a firm’s business risk is lower, its capacity to use debt is higher.
b. If the stock markets are bullish, use of equity is often preferred by companies in such a situation.
c. Working capital affects both the liquidity as well as profitability of a business.
d. Current assets are never financed through long-term sources.
a) option (d)
b) option (a)
c) option (c)
d) option (b)
10. Assertion (A): Decentralisation helps to promote self-reliance and confidence amongst the subordinates.
Reason (R): This is because when lower managerial levels are given freedom to take their own decisions they learn to
depend on their own judgment. It also keeps them in a state where in they are constantly challenged and have to develop
solutions for the various problems they encounter.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
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11. From 2003, all transactions in securities are to be settled within two days after the trade date. This system is known as:

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a) Rotational settlement system
b) Automatic settlement system
c) Mutual settlement system
d) Rolling settlement system
12. M. Motors is the manufacturer of sophisticated cranes. The Production manager of the company, reported to the Chief
Executive Officer, Aneesh Mehta that one of the machines used in manufacturing sophisticated cranes had to be replaced
to compete in the market, as other competitors were using automatic machines for manufacturing cranes. After a detailed
analysis, it was decided to purchase a new automatic machine having the latest technology. It was also decided to finance
this machine through long term sources of finance. Aneesh Mehta compared various machines and decided to invest in
the machine which would yield the maximum returns to its investors. The financial decision taken by Aneesh Mehta is
________.
a) Financing decision
b) Working capital decision
c) Capital budgeting decision
d) Dividend decision
13. Statement I: The Consumer protection Act 2019 extends to the whole of India except Jammu and Kashmir.
Statement II: The Consumer Protection Act 2019 is applicable to all types of businesses whether a manufacturer or a
trader and whether supplying goods or providing services including e-commerce firms.
a) Both the Statements I and II are correct.
b) Both the Statements I and II are not correct.
c) Statement II is correct and Statement I is not correct.
d) Statement I is correct and Statement II is not correct.
14. It is not always true that just because a plan has worked before it will work again. Besides, there are so many
other unknown factors to be considered. This kind of complacency and false sense of security may actually lead to
failure of planning. Identify the limitation of planning highlighted above.
a) ​Planning involves huge costs
b) Planning leads to rigidity
c) Planning may not work in a dynamic environment
d) Planning does not guarantee success
15. Nilesh is engaged in Transport Business and transports fruits and vegetables to different states. Identify the working
capital requirements of Nilesh.
a) Less
b) Medium
c) Nil
d) More
16. Statement I: Product means goods or services or anything of value, which is offered to the market for sale.
Statement II: The concept of product also include the extended product or what is offered to the customers by way of
after sales services, handling complaints, availability of spare parts etc.
a) Statement II is correct and Statement I is not correct.
b) Both the Statements I and II are not correct.
c) Statement I is correct and Statement II is not correct.
d) Both the Statements I and II are correct.
17. Star Ltd..is a garment manufacturing co. The co. regularly scan the business environment and constantly adapts itself to
change in the environment with all these efforts also it became difficult for the company to foresee future trends,
competition in the market affects the financial plan of these. Identify the limitation of planning.
i. leads to rigidity

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ii. may not work in a dynamic environment
iii. reduces creativity
iv. huge cost
a) iii and iv
b) ii and iii
c) only iv
d) only i
18. Match the dimension of management in Column I with their respective definition in Column II:
(a) (i) In a factory, a product is manufactured, in a garment store a customer's need is satisfied and in a
Management hospital a patient is treated. Management translates the goals to be achieved and assigns the means to
of work achieve it.
(b) (ii) No matter what the organisation, it has some basic product or service to provide in order to survive
Management the flow of input material and the technology for transforming this input into the desired output for
of people consumption.

(c)
(iii) The task of management is to make people work towards achieving the organisation’s goals, by
Management
making their strengths effective and their weaknesses irrelevant.
of operations
a) (a) - (i), (b) - (iii), (c) - (ii)
b) (a) - (ii), (b) - (i), (c) - (iii)
c) (a) - (iii), (b) - (ii), (c) - (i)
d) (a) - (i), (b) - (ii), (c) - (iii)
19. Which of the following case will require less working capital?
a) Khank Ltd. is a manufacturer of gift items and due to the festive season, it plans to open some more stores in the
city.
b) Priya Ltd. is running a business of garments having high level of competition.
c) Jalaj Ltd. is manufacturer of a product which has long production cycle.
d) Nitya Ltd. is running a boutique and there is depression phase in the economy.
20. Which of the following is related to the finance and accounting standard?
a) Sale expenses
b) Capital expenditure
c) Labour turnover
d) Quantity
21. Management is systematized body of knowledge that explains general truths”. Explain.
22. Keshav Bannerjee is the Chief Executive Officer (CEO) of Das Networking Ltd., a leading IT company in Bengaluru.
He believes that if needs of employees are taken care of, the employees take good care of the customers. In this company
various benefits are provided to the employees to help them meet their medical and housing needs etc., while in job. It is
also providing benefits like gratuity at the time of their retirement. The employees are provided various opportunities to
attend skill development. programmes to improve their skills and be promoted to the higher level jobs.
Identify and state the three incentives offered by the company in the above para to improve the performance of its
employees.

OR

Explain briefly any three measures to overcome the communication barriers.

23. Jeet and Jeet Ltd. deals in edible oils. Besides, the company is also engaged in wholesale business of tea. Mr. Rakesh
Budhiraja is the Finance Manager of the Edible Oil Division. He is to give a presentation on Capital Structure before the

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Board of Directors. For the sake of its presentation, he studied Business Studies textbook of Class-XII. The main parts of
his presentation were as under:
He maintained that if the company is in a profitable position then along with Equity Share Capital it would be
appropriate to use fixed cost capital, like Preference Share Capital and Debt Capital. By doing so, ratio of cheap capital
in total capital increases. It leads to fall in total capital cost. Consequently, earning of equity shareholders appreciates.
However, in adverse situations, there would be risk of failure to pay fixed capital costs.
Besides this, in the meeting of the Board of Directors, opportunities available in the market were also discussed. In this
regard, it was told that these days people are very much conscious of about cholesterol. Why does not the company bring
it to zero percent level in its edible oils? By marketing such a product ahead of all others, huge profits could be obtained.
Board of Directors agreed to discuss this issue with the specialists of the Research and Development Department.
i. In the above paragraph, two main factors of Capital Structure have been mentioned. Identity the same.
ii. Describe that factor of a business environment that has been reported in the meeting of the Board of Directors.
iii. Which kind of organisation structure is being practiced by the company?
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24. Sumit purchased as ISI marked washing machine of a famous brand 'MG' from TG Electronics Ltd. The shopkeeper
asked him to wait for two days for installation of the machine. His friend, Vivek was very fond of experimenting with
new electronics products. He told Sumit that there is no need to wait for the company's representative to install the
machine and that he could do it. So, both of them installed machine without following the manufacturer instructions.
Initially, the machine worked effectively and the wash was good. But after two days the machine stared stopping in
between the wash cycle. Sumit and Vivek tried their best to start the machine but failed in their efforts. Sumit, therefore,
approached TG Electronics Ltd. which refused to provide any service on the plea that the installation of the machine was
not done by the company.
a. State the responsibility which Sumit had to fulfil as an aware consumer to get the services of the company.
b. Explain briefly any two rights which Sumit could have exercised had he fulfilled his responsibility identified in part
(a).

OR

Aman, a degree holder in Entrepreneurship came to know about Piplantri Village located in Rajasthan, where in 2006 an
initiative was started in which 111 trees are planted every time a girl child is born.
To keep termites away from the trees the villagers have planted 2.5 million Aloe Vera plants around the trees. This has
turned the village into an oasis, as the planting of trees led to higher water levels.
Aman decided to visit the village to start a business unit, for the processing and marketing of Aloe Vera into juices, gels
and other products.
However, on visiting the village Aman found that the villagers were suffering exploitation at the hands of local
merchants who were engaged in unscrupulous, exploitative trade practices like hoarding and black marketing of food
products and also selling unsafe and adulterated products to the villagers.
After looking at their plight, instead of a business organisation, he decided to set up an organisation for the protection
and promotion of the consumer interest of the villagers.
State the functions that the organisation established by Aman will be performing. (Any six points).
25. Explain policy and procedure as types of plan.

OR

Rajender has been running a successful business of manufacturing traditional wedding wear for women including sarees
and lehengas. His friend Surinder who is engaged in the business of providing web designing solutions to his clients,

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suggests him to explore the option of selling his products online. Rajender agrees to his suggestion and decides to
venture into online business, keeping in view the various e-commerce regulations in order to avoid imposition of any
penalty In order to facilitate the sale of his products, Rajender decides to offer multiple payment options such as cash on
delivery, credit or debit card transactions, net banking to the buyers etc.
In the context of the above case:
a. Identify the two different types of plans mentioned in the above paragraph that relate to the online portal that
Rajinder intends to start by quoting lines from the paragraph.
b. Distinguish between the two types of plans as identified in part (a).
26. How does controlling function of management ensures order and discipline and helps in judging accuracy of
standards? Explain.

OR

Love and Kush are two friends. Both are MBA (Final year) students. One day, their professor called them to class stage
for a surprise test. He told that one of them will establish relationship between any two functions of management. Then,
the other one, will establish reverse relationship between the same two functions. Both will have to give justification for
the relationship explained by them. It was a test carrying 50 marks. Both the students were intelligent and skillful. Love
was the first to speak.
Love said that in his opinion of the two functions of management selected by him one is always looking ahead (future)
and the other is looking back (past).
No sooner did love express his opinion, than Kush identified the functions selected by him (Love). In his reply, Kush
said that the one function stated by Love to have been looking ahead was in his opinion, looking back and the other one
stated by in (Love) to have been looking back was looking ahead.
a. Identify the functions of the management discussed in the above paragraph.
b. Justify the contrary relations of management functions as viewed by Love and Kush.
27. Explain the following principles of arrangement.
i. Scalar chain
ii. Harmony, not discord
28. Roshan is the chief chef of 'Khidmat' restaurant located in the city of Bangaluru. The place is known for its exquisite
Mughlai cuisine especially mutton biryani and kababs. All the food is prepared under Roshan's purview. The various
activities in the kitchen are initiated in accordance to his instructions. He is very clear and specific in issuing instructions
to his subordinates in order to ensure the smooth working of the department. He personally oversees the method
followed by the chefs for preparation of each dish. He misses no opportunity to praise his subordinates for their good
work. All his team members feel very happy and satisfied under his direction. He provides constant guidance to them in
order to improve upon its taste and presentation and also encourages them to innovate and be more creative in their
work.
In the above context:
a. Identify the various elements of directing mentioned in the above paragraph by quoting lines from the paragraph.
b. Describe briefly any two points to highlight the importance of directing as a function of management.
29. Nayar is working as a P.G.T. Commerce in a CBSE affiliated school of Kerala. One day he was teaching about capital
market in the class. He informed the class that during 1980’s the capital market in India witnessed a tremendous growth
because of increasing participation of the public. This ever increasing investors’ population and market capitalisation led
to a variety of malpractices on the part of the companies, brokers, merchant bankers, investment consultants and others
involved in the securities market. These malpractices and unfair trading practices eroded investors’ confidence and
multiplied investors’ grievances. The Government of India and the stock exchanges were helpless in redressing the
investors’ problems because of lack of proper penalty provisions in the existing legislation. In view of this the
Government of India decided to set up a regulatory body.

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a. Name the regulatory body which the Government of India decided to set up.
b. Also state any three objectives of the regulatory body identified in part (a) above.
30. Sameeksha is a Class-XII student having Business Studies as one of her subjects. After studying Consumer
Protection as one of the chapters in Business-Studies, she tried to apply the acquired knowledge while purchasing and
using the goods. She is very fond of cooking and always tries new recipies. This time she wants to purchase a Bread
Maker to prepare homemade bread. She checked online about the various brands of Bread Maker available in the
market and compared their price, so that an intelligent and wise choice can be made. Then she went to a near by market
to buy it. Being an informed consumer she looked for the Standardization Mark, negotiated the price printed on the label,
checked the date of manufacturing and asked for guarantee or warranty of the product.
After satisfying with all the concerned information she purchased the Bread Maker and as a responsible consumer
asked for the cash-memo. After coming back home she opened the packaging of the Bread Maker and found an
instruction booklet inside. She carefully read all the instructions and operated the Bread Maker step-by-step and
succeeded in making nice Atta Bread for her family.
Sameeksha has fulfilled many responsibilities of a consumer while purchasing and using the Bread Maker.
State any four responsibilities fulfilled by Sameeksha besides asking for a cash-memo.
31. Define staffing as a function of management and state its importance.

OR

Explain the process of staffing.

32. After completing his MBA from the USA, Mr. Ajay came to India to start a new business under the banner Ecom
Creations Ltd. He launched a new product in e-leaming for senior secondary school students in the commerce stream
which already had an established market in the UK and the USA but not in India. His business started flourishing in
India. As a result, more Indian companies entered the market with other subjects also.
Identify and quote the lines from the above paragraph which highlight the significance of understanding the business
environment.

OR

The government of India announced the Demonetization of ₹ 500 and ₹ 1,000 currency notes with effect from the
midnight of November 8, 2016. As a result, the existing ₹ 500 and ₹ 1,000 currency notes ceased to be legal tender from
that date. New currency notes of the denomination of ₹ 500 and ₹ 2,000 were issued by Reserve Bank of India after the
announcement.
This step resulted in a substantial increase in the awareness about and use of Point of Sale machines, e-wallets, digital
cash and other modes of cashless transactions. Also, increased transparency in monetary transactions and disclosure led
to a rise in government revenue in the form of tax collection.
i. Enumerate the dimensions of the business environment highlighted above.
ii. State the features of Demonetization.
33. As the head boy and head girl of Trakashay Public School', Deepak Chugh and Deepika Chawla have been given the
responsibility of hosting the Teacher's Day programme in the school. In order to conduct the programme in a systematic
way, Deepak and Deepika first called a meeting of the student council. In the meeting, they decided about the content of
the programme after taking into consideration the different available alternatives and choosing the best alternative among
them. Then the various tasks required to be performed were identified and divided in accordance with a predetermined
schedule made by them. After that, they grouped the similar activities into main groups as skit group, choir group,
instrumental music group and contemporary dance group. Then each group was placed under the charge of a council
member in accordance with his/her skills and competencies. These council members were in turn informed that they
have to take orders and will be accountable only to Deepak and Deepika so as to facilitate coordination amongst various

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groups.
In the context of the above case:
a. Identify and explain the functions of management is discussed.
b. Describe briefly any two points highlighting the importance of each of the functions of management as identified in
part (a) of the question.
c. State any two values that 'Prakashay Public School' wants to communicate to society.
34. Medi Instruments Ltd. is a company dealing in the distribution of medical instruments. The company recently imported
15000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing
strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones. In the
meeting, Sanjay, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit
hospitals personally to explain its working to the hospital staff who would be using the machines. He also suggested that
additional trained people may be recruited for the same. Hitesh another Zonal Head, added that since a lot of money had
been spent on the import of the machines, the company was short of funds to pay the additional staff, as suggested by
Sanjay. Revansh, a newly appointed Zonal Head of South Zone, suggested that since the size of the order was not large a
detailed study of the factors determining the choice of channels of distribution was required before making the right
choice.
i. Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.
ii. Also, explain briefly the other consideration to be taken care of in each factor identified in part.
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Class 12 - Business Studies

Sample paper - 04 (2024-25)

Solution

1. (a) Top Level

Explanation: Top Level
2. (b) Only buying of securities takes place, securities cannot be sold there.
Explanation: Only buying of securities takes place, securities cannot be sold there.
3. (c) Planning leads to rigidity
Explanation: Planning leads to rigidity
4. (c) Trading on equity
Explanation: Trading on equity
5. (c) Comparison of actual performance with standards
Explanation: Comparison of actual performance with standards
6. (c) Initiative
Explanation: The principle of initiative is violated here.
7. (d) NSDL and CDSL
Explanation: One is the National Securities Depository Limited (NSDL) and the other is the Central Depository Service
(India) Limited (CDSL) are two depositories which registered with SEBI.
8. (d) Casual callers
Explanation: Casual callers
9. (a) option (d)
Explanation: Current assets are never financed through long-term sources.
10. (a) Both A and R are true and R is the correct explanation of A.
Explanation: Both A and R are true and R is the correct explanation of A.
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11. (d) Rolling settlement system
Explanation: Rolling settlement system
12. (c) Capital budgeting decision
Explanation: Capital budgeting decision
13. (c) Statement II is correct and Statement I is not correct.
Explanation: Statement II is correct and Statement I is not correct.
14. (d) Planning does not guarantee success
Explanation: Planning does not guarantee success
15. (a) Less
Explanation: Less
16. (d) Both the Statements I and II are correct.
Explanation: Both the Statements I and II are correct.
17. (d) only i
Explanation: Planning is rigid.
18. (a) (a) - (i), (b) - (iii), (c) - (ii)
Explanation: (a) - (i), (b) - (iii), (c) - (ii)

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19. (d) Nitya Ltd. is running a boutique and there is depression phase in the economy.
Explanation: Nitya Ltd. is running a boutique and there is depression phase in the economy.
20. (b) Capital expenditure
Explanation: Sale expenses are related to Marketing standard. Quantity is related to Production standard. Labour
turnover is related to Human Resource management.
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material for CBSE, NCERT, JEE (main), NEET-UG and NDA exams. Teachers can use Examin8 App to create similar
papers with their own name and logo.
21. Management is a systematized body of knowledge: Science is a systematized body of knowledge which establishes a
relationship between cause and effect and a lot of materials prove it. Science believes in general truth based on some
experiments or logical explanation. For example; Law of gravity explains that when a ball is thrown high then it will be
pulled back by the gravity and it falls towards the centre of the earth. It is also there in the profession, in every
profession, we have a need of some specialised knowledge of that professional and in present scenario in management
also, we have a need of systematized studies.
22. Two financial incentives offered are:
Perquisites: In many companies perquisites and fringe benefits are offered to maintain a good quality of life such
as car allowance, housing, medical aid, and education to the children etc., over and above the salary.
Retirement Benefits: Retirement benefits are the benefits received either at the time of retirement or afterwards,
such as provident fund, pension, and gratuity. These provide financial security to employees after their retirement.
it ease the life of the employee after retirement.

One Non-Financial Incentive is:

Career Advancement Opportunity: A company must provide employees appropriate skill development
programmes, and a sound promotion policy to achieve promotions and advance in their careers.

OR

The three measures to overcome the communication barriers are:

i. Clarify the Ideas before Communication: Any issue to be communicated to a subordinate should be clearly and
completely studied and analyzed by the superior. Moreover, it should be stated in such a manner that subordinate can
easily understand it in the same sense in which the supervisor wants him to receive it.
ii. Be aware of languages, tone and content of message: Language, tone and content of the message should be so
adjusted according to the situation that it is easily understood by the receiver and stimulates them.
iii. Convey things of help and value to listeners: To get a good response from the subordinates, it should be ensured
that the message relates to their interests.
23. i. Two main factors of capital structure referred to are as under:
a. Trading on equity
b. Financial risk
ii. Advantage of First Mover:
A company that is fully conscious about changes in a business environment, earns enormous profit by becoming the
first mover/supplier.
iii. Divisional organisation structure
24. a. The responsibility which Sumit had to fulfil as an aware consumer to get the services of the company is to learn
about the risks associated with products and services, follow manufacturer's instructions and use the products safely.
b. The two rights which Sumit could have exercised had he fulfilled his responsibility are described below:
a. Right to be Heard: According to the Right to be Heard, a consumer has a right to file a case and be heard in case
he/she is not satisfied with any product or service. In order to promote this right, most of the reputed firms have

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set up Consumer helpline cells. Moreover, the consumer organisations help the consumers' in filling and perusal
of complaints. This right helps to empower the consumers of India for putting forward their complaints and
concerns fearlessly and raising their voice against products or even companies and ensure that their issues are
taken into consideration as well as handled expeditiously. However, till date the Indian Government has not
formed even one outlet for hearing the consumers or their issues to be sorted out.
b. Right to Seek Redressal: According to the Right to Seek Redressal, the grieved consumer has the right to get
relief in case the product or service falls short of his expectation. The various reliefs available to the consumers
include the refund of amount paid for the goods, replacement of goods, removal of defects, compensation for any
loss suffered etc.

OR

Aman has set up an NGO or consumer organisation in the village for the protection and promotion of consumer interests.
The key functions highlighting the role of a consumer association are listed below:
a. Educating the general public about consumer rights by conducting training programmes, conferences and workshops.
b. Publishing periodicals, other publications, arrange conferences, seminars and workshops, to give knowledge about
consumer problems, provide special education to women about consumerism, legal reporting, reliefs available and
other matters of interest.
c. Carrying out comparative testing of consumer products in accredited laboratories to test the relative qualities of
competing brands and publishing the test results for the benefit of consumers.
d. Encouraging consumers to strongly protest and take an action against unscrupulous, exploitative and unfair trade
practices of sellers.
e. Providing legal assistance to consumers by way of providing aid, legal advice etc. in seeking legal remedy.
f. Filing complaints in appropriate consumer courts on behalf of the consumers.
g. The consumers’ organisations play a significant role in eliminating the evils of adulteration, hoarding, black-
marketing, and under-weight selling. Whenever there is an unnecessary rise in the prices of certain things, the
consumers’ organisation raise a voice of protest against it.
25. Policy
These are the general guidelines which bring uniformity in decision making.
It can be defined as an organisation's general response to a particular problem or situation.
Policies are made at every level because the managers at every level need to decide or predetermine the way of
handling a situation.
These act as a guide to take decisions in an unexpected situation.
For example, a school may have a policy of giving admission to the students who have secured more than 60%
marks.

Procedure
These are those plans which determine the sequence of any work to be performed.
They are specified in chronological order.
Procedures are designed to execute policies and achieve objectives.
For example, the procedure may be for the purchase of raw material, selection of employees, redressal of
grievances, etc.

OR

1. Strategy and Procedure are the two different types of plans that relate to the online portal that Rajender intends to
start.
Strategy: "Rajender agrees to his suggestion and decides to venture into online business keeping in view the various

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e-commerce regulations in order to avoid the imposition of any penalty."
Procedure:: "However, he decides to offer multiple payment options such as cash on delivery, credit or debit card
transactions, net banking to the buyers etc."
2. The difference between Strategy and Procedure is as follows:
1. A strategy is a comprehensive plan for achieving the objectives of the organisation.
2. Procedure refers to a series of specific steps to be performed in a chronological order to carry out the routine
activities.
26. Importance of controlling function of management:
i. Accomplishing organizational goals: The controlling function tracks advancement toward organisational
objectives, identifies deviations, if any, and recommends corrective action. Thus, it directs the organisation and keeps
it on the course so that organisational objectives can be met.
ii. Judging accuracy of standards: Management can confirm the accuracy and objectivity of the standards set thanks
to a sound control system. An effective control system helps to review and revise the standards in light of such
changes by keeping a close eye on the changes occurring within the organisation and in the environment.
iii. Making efficient use of resources: manager tries to minimize resource waste and spoilage by exercising control.
Every task is carried out in accordance with established standards and norms. This guarantees the most effective and
efficient use of the resources.
iv. Improving employee motivation: A good control system makes sure that employees are aware of what is expected
of them and the performance standards that will be used to evaluate them. As a result, it inspires them and aids in
improving their performance.
v. Ensuring order and discipline: Controlling fosters a culture of discipline and order in the workplace. By closely
monitoring their actions, it is possible to reduce the amount of dishonest behaviour on the part of the employees.
vi. Facilitating coordination in action: All actions and endeavours are directed by controlling in order to accomplish
organisational objectives. Every department and employee is subject to predetermined rules that are closely
synchronised with one another. This guarantees the achievement of the overall organisational goals.

OR

a. Planning and Controlling are the functions of the management discussed in the above paragraph. Planing is the
fundamental management function, which involves deciding beforehand, what is to be done, when is it to be done,
how it is to be done and who is going to do it. It is an intellectual process which lays down organisation’s
objectives and develops various courses of action, by which the organisation can achieve those objectives. It chalks
out exactly, how to attain a specific goal. Controlling is one of the important functions of a manager. In order to seek
planned results from the subordinates, a manager needs to exercise effective control over the activities of the
subordinates. In other words, the meaning of controlling function can be defined as ensuring that activities in an
organization are performed as per the plans. Controlling also ensures that an organization’s resources are being used
effectively & efficiently for the achievement of predetermined goals.
b. i. Love’s reply and relations between the functions of management. Planning is Looking Ahead whereas
Controlling is Looking Back: Plans are always formulated for future and determine the future course of action for
the achievement of set objectives. On the contrary, controlling is looking back because under it a manager tries to
find out after the completion of the work, whether it has been done as per the standard or not. It is thus obvious
that planning looks ahead (in the future) and controlling looks backward (in the past).
ii. Kush’s reply and relationship between the functions of management. Planning is Looking back whereas
Controlling is Looking ahead: Kush’s reply and relations between the functions of management. Planning is
called looking back because the plans are formulated on the basis of the happening in the past or on the basis of
experience. On the other hand, controlling evaluates the work done in the past but the corrective measures are
taken in future. Thus, there is no denying the fact that planning looks backward while controlling looks ahead.

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27. Scalar chain:- An organisation consists of superiors and subordinates. The formal lines of authority from highest to
lowest ranks are known as 'scalar chain'. According to Fayol, "Organisations should have a chain of authority and
communication that runs from top to bottom and should be followed by managers and the subordinates."
Harmony, not discord:- Taylor emphasised that there should be complete harmony between the management and
workers. Both should realise that each one is important. To achieve this state, Taylor called for complete 'mental
revolution' on the part of both management and workers. It means that management and workers should transform their
thinking.
28. a. It has been made clear in the nature of leading that it is not a single activity but a group of functions. On the same
basis, the following functions are included in its scope:
i. Supervision,
ii. Communication,
iii. Leadership, and
iv. Motivation.
b. Importance of directing is as follows:
i. Initiates Action
Each and every action in an organization is initiated only through directing. The managers direct the subordinates
about what to do, how to do when to do and also see to it that their instructions are properly followed.
ii. Ingrates Efforts
Directing integrates the efforts of all the employees and departments through persuasive leadership and effective
communication towards the accomplishment of organizational goals.
iii. Motivates Employees
A manager identifies the potential and abilities of its subordinates and helps them to give their best. He also
motivates them by offering them financial and non-financial incentives to improve their performance.
iv. Provides Stability
Stability is significant in the growth of any organization. Effective directing develops co-operation and
commitment among the employees and creates a balance among various departments and groups.
v. Coping up with the Changes Employees have a tendency to resist any kind of change in the organization. But,
adapting the environmental changes is necessary for the growth of the organization. A manager through
motivation, proper communication and leadership can make the employees understand the nature and contents of
change and also the positive aftermaths of the change. This will help in a smooth adaptation of the changes
without any friction between the management and employees.
vi. Effective Utilization of Resources
It involves defining the duties and responsibilities of every subordinate clearly thereby avoiding wastages,
duplication of efforts, etc. and utilizing the resources of men, machine, materials, and money in the maximum
possible way. It helps in reducing costs and increasing profits.
29. a. Regulatory body - SEBI (Securities and Exchange Board of India)
b. 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, particularly individual investors and to guide and educate them.
iii. To prevent trading malpractices and achieve a balance between self regulation and statutory regulation. it helps in
reducing the grievance of the investor in the market.
30. A customer has specific obligations when buying, utilizing, and consuming things.
i. Be aware about the various products available in the market so that an intelligent and wise choice can be made as he
went to nearby market.
ii. Buy only standardised goods as they provide quality assurance. Thus, look for an ISI mark on electrical goods, FPO
mark on food products, Hallmark on jewelry, etc. She look for standardised marks.

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iii. Follow the product's instructions, learn about the hazards linked with the product, and use it safely.
iv. Read the instructions on label to gain information about prices, net weight, manufacturing and expiry dates, etc.
v. Assert yourself to ensure that you get a fair deal as she compared the prices also.
31. Staffing function of management helps in obtaining the right people and putting them on the right jobs. Proper staffing
ensures the following benefits to the organization:
i. Obtaining competent personnel: In all organizations, there is a need for people to perform work. Staffing function
helps in discovering and to obtain competent personnel for various jobs.
ii. Higher performance: Staffing finds the right person for the right job. It ensures the higher performance of the
employees as work is assigned according to their capabilities and at the same time, organizational objectives are
achieved in the most efficient and effective manner.
iii. Survival and growth: By appointing efficient staff, staffing ensures the continued survival and growth of an
enterprise. An organization grows with the sincere efforts of its employees only.
iv. Optimum utilization of human resources: Through manpower planning and job analysis, we can find out the
number and types of employees required in the organization. So, there are no chances of overmanning, shortage or
under-utilization of personnel.

OR

Process of selection are as follows:

i. Preliminary screening or short listing: This step is taken by a manager to eliminate the most unqualified and
unsuitable candidates on the basis of information provided through application forms.
ii. Selection tests: Selection tests aim at measuring certain characteristics of individuals. Important tests are: (i)
intelligence test; (ii) Aptitude test etc.
iii. Employment interview: Interview is conducted to have a detailed conversation with the applicant for measuring his
suitability for the job.
iv. Reference and background checks: More information about the candidate is gathered from indirect personal
sources like previous employers, teachers, university professors, etc.
v. Selection decision: The employer then chooses the best candidates out of those who clear the tests, interviews and
reference checks.
vi. Medical examination: After selection a candidate undergoes a medical fitness test.
vii. Job Offer: Appointment letter is given to the candidate confirming him the place and date of starting his job.
viii. Employment Contract: This includes the terms and conditions applicable to both the employer as well as the
employee. The contract includes detailed information about remuneration, duty hours, rules and regulations,
allowances, etc.
32. a. The understanding of the business environment helps in assisting in planning and policy formulation as its
understanding and analysis can be the basis for deciding the future course of action or decision making. It enables the
firm to identify opportunities and getting the first-mover advantage instead of losing them to its competitors. The
lines from the given paragraph are:
"After completing his MBA from the USA, Mr. Ajay came to India to start a new business under the banner Ecom
Creations Ltd. He launched a new product in e-leaming for senior secondary school students in the commerce stream
which already had an established market in the UK and the USA but not in India."
b. It helps in improving the performance of an enterprise through continuous monitoring of the environment and
adopting suitable business practices that help to improve both their present and future performance. The lines from
the given paragraph are:
"His business started flourishing in India."
c. It helps the firm to identify threats and early warning signals that are likely to hinder a firm's performance and take
timely actions. The lines from the given paragraph are:

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"As a result, more Indian companies entered the market with other subjects."

OR

i. The Dimensions of business environment highlighted above are:

a. Political dimension: 'The government of India announced Demonetization of ₹ 500 and ₹ 1,000 currency notes
with effect from the midnight of November 8, 2016.'
b. Legal dimension: 'As a result, the existing ₹ 500 and ₹ 1,000 currency notes ceased to be legal tender from that
date.'
c. Technological dimension: 'The step resulted in a substantial increase in the awareness about and use of Point of
Sale machines, e-wallets, digital cash and other modes of cashless transactions.'
ii. Features of Demonetization are:
a. Acted as a Measure of tax administration- As a result of demonetization, various black money holders had to
declare the unaccounted wealth and pay taxes along with a penalty.
b. Acted as a Measure to avoid tax evasion- As the wealth was to be accounted for in a determinate period, it was a
clear indicator that the government will not tolerate tax evasion.
c. Acted as a Measure of channelizing savings into the financial system- As surplus money was deposited in banks
the financial system was able to become more robust.
d. Helped to Create 'cash-less' or cash-lite' economy- for increasing financial saving and reducing tax evasion.
e. Acted as a means of curbing black marketing, corruption and circulation of fake currency.
33. a. The Planning and Organising functions of management are being discussed.
Planning is deciding in advance what to do, how to do when to do and who has to do it. It is one of the basic
managerial functions. Thus, it involves setting objectives and developing an appropriate course of action to achieve
these objectives.
Organizing is the process of defining and grouping the activities of the enterprise and establishing authority
relationships among them.
b. The importance of the planning function of management is described below:
(i) Planning provides directions: The well-defined plans act as a guide for deciding what course of action should be
taken to attain the organizational goals.
(ii) Planning reduces the risk of uncertainty: Planning helps to reduce the risk of uncertainty arising due to the
dynamic nature of the business environment as it enables a manager to anticipate and meet changes effectively.
The importance of the organizing function of management is described below:
(i) Benefits of specialization: Organising leads to a systematic allocation of jobs amongst the workforce. This not
only helps to reduce the workload of the employees but also leads to increased productivity. This is because of the
fact that specific employees are assigned a specific job on a regular basis which leads to specialization.
(ii) Clarity in working relationships: The process of organizing leads to the establishment of clear cut reporting
relationships. This helps in developing a hierarchical order thereby enabling the fixation of responsibility and
specification of the extent of authority to be exercised by an individual.
c. The two values that Trakashay Public School' wants to communicate to society are:
i. Trust
ii. Participation
34. i. The factors influencing the choice of channels of distribution discussed here are
a. Product Related Factor: Product complexity Since the product marketed by the company require technical
detailing by the personnel, shorter channels of distribution will be preferred As against this, non-complex
products usually prefer longer channels. For the technical product, we have to provide proper details to the
customer to use the product other its may be harmful to him. The second product related factor is that it is an
industrial product which is directly distributed to the hospital so shorter channel is prefered.

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b. Company Related Factor: Financial strength Since the company is running short of funds, it may make use of
indirect channels of distribution If the financial position of the company had been strong, direct channels could
have been used. Thus if the firm has plenty of funds, it may go for a direct channel of distribution and if not then
it may go for an indirect channel.
c. Competitive Factor: Size of the order In the given case, the size of the order is not very large, therefore the
company may prefer longer channels of distribution If the order would have been large, direct channels could
have been used.
ii. The other consideration related to each of the factor identified above are
a. Product Related Factor: Nature of the product While industrial goods are usually technical, made to order and
expensive products purchased by few buyers, they require shorter channels. Whereas, consumer goods which are
standardized, non-expensive, less bulky and frequently demanded, require longer and indirect distribution
channels. As technical product needs training so shorter channel should be preferred by producers.
b. Company Related Factor: Degree of control If the management wants to have greater control over distribution,
shorter or direct channels will be preferred, and if the company does not want more control on middleman than it
may go for the longer channel of distribution.
c. Market Factor: Number of buyers When the number of buyers is small and concentrated in a small place,
shorter channels may be used But, if the number of buyers is large and the market is widespread over a large
geographical area , longer channels should be preferred.
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