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

Senior School Certificate Examination

March -----2023
Marking Scheme---Business Studies 66/1/1, 66/1/2, 66/1/3
General Instructions:
1 You are aware that evaluation is the most important process in the actual and correct
assessment of the candidates. A small mistake 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.
2 “Evaluation policy is a confidential policy as it is related to the confidentiality of
the examinations conducted, Evaluation done and several other aspects. Its’
leakage to public in any manner could lead to derailment of the examination
system and affect the life and future of millions of candidates. Sharing this
policy/document to anyone, publishing in any magazine and printing in News
Paper/Website etc may invite action under various rules of the Board and IPC.”
3 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/or are innovative, they may be assessed for their correctness otherwise and
due marks be awarded to them.
4 The Marking scheme carries only suggested value points for the answers
These are in the nature of Guidelines only and do not constitute the complete answer.
The students can have their own expression and if the expression is correct, the due
marks should be awarded accordingly.
5 The Head-Examiner must go through the first five answer books evaluated by each
evaluator on the first day, to ensure that evaluation has been carried out as per the
instructions given in the Marking Scheme. If there is any variation, the same should
be zero after delibration and discussion. The remaining answer books meant for
evaluation shall be given only after ensuring that there is no significant variation in
the marking of individual evaluators.
6 Evaluators will mark( √ ) wherever answer is correct. For wrong answer CROSS ‘X”
be marked. Evaluators will not put right (✓)while evaluating which gives an
impression that answer is correct and no marks are awarded. This is most common
mistake which evaluators are committing
7 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 totaled up and
written in the left-hand margin and encircled. This may be followed strictly.
8 If a question does not have any parts, marks must be awarded in the left-hand margin
and encircled. This may also be followed strictly
9 If a student has attempted an extra question, answer of the question deserving more
marks should be retained and the other answer scored out with a note “Extra
Question”.

1
10 No marks to be deducted for the cumulative effect of an error. It should be penalized
only once.
11 A full scale of marks __________(example 0 to 80/70/60/50/40/30 marks as given in
Question Paper) has to be used. Please do not hesitate to award full marks if the
answer deserves it.
12 Every examiner has to necessarily do evaluation work for full working hours i.e., 8
hours every day and evaluate 20 answer books per day in main subjects and 25
answer books per day in other subjects (Details are given in Spot Guidelines).
13 Ensure that you do not make the following common types of errors committed by the
Examiner in the past:-
● Leaving answer or part thereof unassessed in an answer book.
● Giving more marks for an answer than assigned to it.
● Wrong totaling of marks awarded on an answer.
● Wrong transfer of marks from the inside pages of the answer book 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/not same.
● Wrong transfer of marks from the answer book to online award list.
● Answers marked as correct, but marks not awarded. (Ensure that the right tick
mark is correctly and clearly indicated. It should merely be a line. Same is with
the X for incorrect answer.)
Half or a part of answer marked correct and the rest as wrong, but no marks awarded.
14 While evaluating the answer books if the answer is found to be totally incorrect, it
should be marked as cross (X) and awarded zero (0)Marks
15 Any unassessed portion, non-carrying over of marks to the title page, or totaling
error detected by the candidate shall damage the prestige of all the personnel
engaged in the evaluation work as also of the Board. Hence, in order to uphold the
prestige of all concerned, it is again reiterated that the instructions be followed
meticulously and judiciously
16 The Examiners should acquaint themselves with the guidelines given in the
“Guidelines for spot Evaluation” before starting the actual evaluation.
17 Every Examiner shall also ensure that all the answers are evaluated, marks carried
over to the title page, correctly totaled and written in figures and words.
18 The candidates are entitled to obtain photocopy of the Answer Book on request on
payment of the prescribed processing fee. All Examiners/Additional Head
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

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66 MARKING SCHEME– 2023
/1 BUSINESS STUDIES Marks
/1 66/1/1
EXPECTED ANSWERS / VALUE POINTS
1 Q. ‘Coordination integrates the efforts of different
departments and at different levels’.
Identify the characteristic of coordination highlighted in
the above statement.
(a) Coordination ensures unity of action.
(b) Coordination is an all pervasive function.
(c) Coordination is a deliberate function.
(d) Coordination is the responsibility of all managers.

Ans (b) 1 mark

Coordination is an all pervasive function.
2 Q. Which of the following are the examples of Legal
Environment ?

(i) Advertisement of alcoholic beverages is prohibited

(ii) Decrease in interest rate on loans
(iii) Increase in demand for organic foods
(iv) Digilockers for storing documents
(v) In 1993, the Supreme Court passed an order to close
the iron foundries around ‘Taj Mahal' at Agra
(a) (i) and (iv)
(b) (i) and (ii)
(c) (ii) and (iii)
(d) (i) and (v)

Ans (d)
(i) and (v) 1 mark
3 Q. __________refers to retention of decision-making
authority by higher management levels .

(a) Decentralisation
(b) Departmentalisation
(c) Span of Control
(d) Centralisation

3
 Ans (d)
Centralisation 1 mark
4 Q. Umang was working as a ‘Production Manager' at
‘LG Papers Ltd’. The company had launched new eco-
friendly paper straws in the market. He was given a
target of producing 5,000 straws a day, by the General
Manager. In spite of making the employees work
overtime, Umang could not meet the target.
On investigation, it was found that the employees had
not received the right training to manufacture these eco-
friendly paper straws. So the employees were sent for
special training.
The function of management which helped Umang in
identifying that he could not meet the target is:

(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Ans (d)
Controlling 1 mark
5 Q. Statement I: Management is multi-dimensional.

Statement II : The activities involved in managing an

enterprise are common to all organisations whether
economic, social or political.
Choose the correct option from the options given below:
(a) Statement I is true and II is false
(b) Statement II is true and I is false.
(c) Both the statements are false.
(d) Both the statements are true.

Ans (d)
Both the statements are true
1 mark
6 Q. Which of the following is not a step in the process of
'Controlling' function of management ?

4
 (a) Setting performance standards
(b) Assignment of duties
(c) Taking corrective action
(d) Comparing actual performance with standards

Ans (b)
Assignment of duties
1 mark
7 Q. __________as an element of marketing mix includes
the activities that make the firm's products available to
the target customers.

(a) Promotion
(b) Place
(c) Product
(d) Price

Ans (b)
Place 1 mark
8 Q. The process of defining and grouping the activities of
the enterprise and establishing authority relationship
among them is :

(a) Directing
(b) Staffing
(c) Management
(d) Organising

Ans (d)
Organising 1 mark
9 Q. Sangeeta visited 'Smile Dental Clinic for treatment of
toothache. She observed that the receptionist was seated
at the reception desk, the place fixed for her. Dental
instruments were laid neatly in dental instrument trays
and the used instruments were placed in the sterilisation
area. There was a fixed place for everything and it was
present there. There was no hindrance in the work of
the dentist and he was working with her maximum
efficiency .
The principle of management followed at the Smile
Dental Clinic was :
5
 (a) Equity
(b) Discipline
(c) Order
(d) Initiative

Ans (c)
Order 1 mark
10 Q. Match the various characteristics of Business
environment given in Column I with their respective
explanations in Column II:
Column I Column II
A. Dynamic nature (i) Environment is a phenomenon
that is relatively easier to
understand in parts but difficult to
grasp in its totality.

B. Complexity (ii) Business environment differs

from country to country and even
region to region.

C. Relativity (iii) Business environment keeps on

changing, whether in terms of
technological improvement or
shifts in consumer preferences.

(a) A- (iii), B-(ii), C-(i)

(b) A-(ii,) B- (iii), C-(i)
(c) A-(iii,) B-(i), C-(ii)
(d) A-(i), B-(ii), C-(iii)

Ans (c) 1 mark

A-(iii), B-(i), C-(ii)
11 Q. Management has its own vocabulary of terms and
concepts. Managers need to communicate with one
another with the help of a common vocabulary for the
better understanding of their work situation.
Which characteristic of 'Management as a Science’ is
highlighted in the above statement ?
(a) Principles based on experimentation
(b) Systematised body of knowledge

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 (c) Universal validity
(d) Personalised application

1 mark
Ans (b)
Systematised body of knowledge
12 Q. ‘Alfanzo Ltd' is achieving all its objectives in an
effective and efficient manner. It is earning enough
revenue to cover costs and the risks of the business. Now
the company wants to increase the sales volume, the
capital investment, the number of employees and the
number of products also.
By doing this, the management wants to achieve its
following objective :
(a) Survival
(b) Profit
(c) Personal
(d) Growth

Ans (d)
Growth 1 mark
13 Q. During the Covid-19 pandemic, the restaurant
industry faced many challenges. The slowdown led to
huge decrease in demand. From April 2022, the effect of
Covid started reducing. The economy started picking up
and a boom was noticed in the restaurant industry. As a
result, larger amount of working capital was required
with increased production and sales.
The factor affecting the working capital requirement
discussed above is:
(a) Seasonal factor
(b) Production cycle
(c) Operating efficiency
(d) Business cycle

Ans (d)
Business Cycle 1 mark
14 Q. Adapting to a change in consumer preference
towards online shopping. ‘Fast-Service' started a

7
 grocery delivery app. It is a platform that ensures 10-
minute deliveries of groceries. Because of this service,
‘Fast-Service’ earned huge profit within a year. It
planned to expand its operations and decided to raise
funds by directly issuing its securities to investors.
The market through which ‘Fast-Service' has decided to
raise funds for its expansion is :
(a) Money market
(b) Primary market
(c) Secondary market
(d) Both Primary and Secondary markets

Ans (b)
Primary market 1 mark
15 Q. ‘Capital Market instruments are riskier both with
respect to returns and principal repayment as compared
to Money Market instruments.’
This highlights the following point of difference between
‘Capital Market' and 'Money Market':
(a) Instruments
(b) Duration
(c) Safety
(d) Liquidity

Ans (c)
Safety 1 mark
16 Q. Which of the following statements does not highlight
the importance of financial planning?

(a ) Detailed plans of action prepared under financial

planning increase waste, duplication of efforts and gaps
in planning.
(b) It helps in forecasting what may happen in future
under different business situations
(c) It provides a link between investment and financing
decisions on a continuous basis.
(d) It helps in avoiding business shocks and surprises
and helps the company in preparing for the future

8
 Ans (a)
Detailed plans of action prepared under financial planning
increase waste, duplication of efforts and gaps in planning.
1 mark
17 Q. ‘Roma Ltd’ identified the needs of the customers for
the successful marketing of their products. This was
important for making an analysis of the available
opportunities, threats, weaknesses and strengths of the
organisation and help in deciding what opportunities
can best be pursued by it.
By doing so, which of the following functions of
marketing is being performed by ‘Roma Ltd'?
(a) Standardisation and grading
(b) Product designing and development
(c) Marketing planning
(d) Gathering and analysing market information

Ans (d) 1 mark

Gathering and analysing market information
18 Q.

The symbol which appears on all the ‘Elegant' cars and

which is not utterable is known as its:
(a) Brand
(b) Brand name
(c) Brand mark
(d) Trade mark

Ans (c) 1 mark

Brand mark
19 Q. ‘A good physical distribution system should provide
for an accurate and speedy processing of orders in the
absence of which goods will reach the customers late or
in wrong quantity.’

9
 The component of physical distribution highlighted
above is:
(a) Warehousing
(b) Order Processing
(c) Transportation
(d) Inventory Control

Ans (b)
Order Processing 1 mark
20 Q. ________ involves a variety of programmes designed
to promote or protect a company's image and its
individual products in the eyes of the public.
(a) Personal selling
(b) Public relations
(c) Sales promotion
(d) Advertising

Ans (b)
Public relations 1 mark
21 Q. Hitesh is the Chief Executive Officer of ‘Kids
Garments Ltd.’ Due to festive season, Hitesh got an
additional order of 10,000 garments which he had to
supply within two days. Due to his goodwill in the
market, he did not want to lose the order, So, he decided
to achieve the target by operating on double shifts. He
achieved the target and supplied the order within two
days. But due to double shifts, his cost of production was
higher than the regular production cost.
Identify and give the meaning of the two concepts of
management discussed in the above para.

Ans.
Efficiency and Effectiveness 1/2x2=1
Efficiency means doing the task correctly and with
minimum cost. +1 mark
+
Effectiveness is concerned with doing the right task,
completing activities and achieving goals. 1 mark
(Or any other suitable meaning) =
3 marks
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22 Q. ‘The attitudes, skills and abilities of employees to
perform specific jobs are increased by adopting a
specific process.’ This process benefits the organisation
in many ways.
State any three benefits of this process to the
organisation.

Ans
Benefits of training to the organisation : (Any 3)
(i) Training is a systematic learning, always better
than hit and trial methods which lead to wastage
of efforts and money.
1x3
(ii) It enhances employee productivity both in =
terms of quantity and quality, leading to higher
profits.
(iii) Training equips the future manager who can take
3 marks
over in case of emergency.
(iv) Training increases employee morale and reduces
absenteeism and employee turnover.
(v) It helps in obtaining effective response to fast
changing environment.
(If the examinee has listed the points only, ½ mark each to
be awarded)
23 Q. (a)

(i) Name the process of holding securities in an

electronic form.

(ii) Name any two participants of Money Market.

(iii) Name the depositories that hold securities in

electronic form.

Ans (a)
(i) Dematerialisation 1 mark+
(ii) RBI, Commercial Banks, NBFCs, State Governments,
Large Corporate Houses, Mutual Funds. (Any two) 1/2x2=1+
(iii) National Securities Depositories Limited (NSDL) and

11
 Central Depository Services Limited (CDSL) 1/2x2=1
=3marks

OR
Q. (b) State any three factors affecting the dividend
decision.

Ans (b)
Factors affecting dividend decision are (Any three):
(i) Amount of earnings are a major determinant of dividend
decision as dividends are paid out of current and past
earnings.
(ii) Stability of earnings is another factor affecting dividend 1x3
decision as a company having stable earnings is in a
position to declare higher dividends. =
(iii) Companies generally prefer to maintain stability of
dividends while taking dividend decision.
(iv) If a company has good growth opportunities, it pays out
less dividend.
(v) A good cash flow position is necessary for declaration of
dividend.
(vi) Shareholders’ preference is kept in mind by the 3 marks
management before declaring dividends.
(vii) Taxation policy affects the dividend decision as a
higher dividend distribution tax will lead to lesser dividend
payout.
(viii) The possible stock market reaction of dividend policy
on the share price is one of the important factors affecting
dividend decision.
(ix) While taking dividend decision, companies take into
consideration their access to capital market.
(x) Certain provisions of the Companies Act i.e. legal
constraints place restrictions on payout of dividend.
(xi) While taking dividend decision, companies keep in
mind the restrictions imposed by the lenders i.e. contractual
constraints.
(If the examinee has listed the points only, ½ mark each to
be awarded)
24 Q. (a)Explain the following as points of importance of
‘Controlling’ function of management:
i) Judging accuracy of standards

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ii) Making efficient use of resources

Ans (a)
(i) Judging accuracy of standards:
• A good control system enables management to verify
whether the standards set are accurate and objective.
• It keeps a careful check on the changes taking place 1 ½ marks
in the organisation and in the environment and helps
to review and revise the standards in light of such
changes.
+
(ii) Making efficient use of resources: 1 ½ marks
• By exercising control, a manager seeks to reduce =
wastage and spoilage of resources. 3 marks
• Each activity is performed in accordance with
predetermined standards and norms.

OR

Q. (b) Explain the relationship between ‘Planning’ and

‘Controlling’ with the help of any three points.

Ans (b) Relationship between planning and controlling (Any

three with explanation)
(i) Controlling takes place on the basis of standards
developed by planning.
(ii) Planning without controlling is meaningless as
1x3
controlling ensures that the events conform to
plans. =
(iii) Planning prescribes an appropriate course of
action for achieving objectives whereas
controlling evaluates whether decisions have 3 marks
been translated into desired actions.
(iv) Planning and controlling are both forward
looking as well as looking back.

13
25 Q. Nitya is a student of class XIl of a well-known school.
She has a preconceived notion that her teacher always
finds fault in her work. One day while checking the
project work of class XII, her teacher wanted to
appreciate Nitya for her hard work and good
performance, but before she could complete her
sentence, Nitya left the room without listening to her
teacher.
(a) Identify the ‘barrier to communication' and also the
type/category of barrier to which it is related.
(b) Explain two other communication barriers of the
type/category identified in (a) above.

Ans (a) ½ x 2= 1mark

Premature Evaluation and Psychological Barriers

Ans (b) Any two of the following:

(i) Lack of Attention :
The pre-occupied mind of receiver and the resultant non ½ mark for
heading and
listening of message acts as a major psychological barrier.
1 mark for
explanation
(ii) Loss by transmission and poor retention :
When communication passes through various levels, 1 ½ x2
successive transmissions of the message results in =3 marks
loss of, or transmission of inaccurate information.

(iii) Distrust :
Distrust between communicator and
communicatee acts as a barrier. If the parties do not 1+3 =
believe each other, they cannot understand each 4 marks
others message in its original sense.
26 Q. X Ltd.' issued 14% Debentures of `4,00,000 and
10,000 Equity shares of `60 each. This investment
resulted in a net profit of `2,00,000 before interest and
tax. The tax rate was 50%.

(a) Calculate the 'Return on Investment’ and ‘Earning

per Share’ of ‘X Ltd.’

(b) State with reason whether the above example is that

14
 of favourable or unfavourable financial leverage.

Ans (a)
Return on Investment

= Profit before interest and tax or EBIT x 100

Capital employed or Total Investment
1 ½ marks
= 2,00,000 x 100
10,00,000 +
=20%

1 ½ marks
Earning per share = Profit after interest and tax +
Number of equity shares

= 2,00,000 – 56,000 – 72,000

10,000
= ` 7.20 per share

Ans (b)
It is a case of favourable financial leverage as the ROI > ½ mark + 1/2
Rate of interest. mark for
reason=1

1 ½ +1 ½ +1
=
4 marks
27 Q. ‘Zeto Ltd.’ offers its employees shares at a price
which is less than the market price.
(a) Identify the incentive offered by the company and
state the type of incentive discussed above.
(b) State two other incentives of the type of incentive
identified in (a) above.

Ans (a)
Co-partnership/ Stock option 1

Financial incentives are the incentives measurable in direct

monetary form/term which serve to motivate people for +1
15
better performance.
(If the examinee has listed the type of incentive only, ½ =2 marks
mark to be awarded)

Ans (b)
Two other financial incentives are : (Any 2)

(i) Pay and allowances include basic pay, dearness

allowance and other allowances. 1x2 =2marks
(ii) Productivity linked wage incentive aims at linking
payment of wages to increase in productivity at individual
or group level.
(iii)Bonus is an incentive offered over and above the
wages/ salary to the employees.
(iv) Sharing profit with employees serves to motivate the
employees to improve their performance and contribute to
increase in profits
(v) Retirement benefits such as provident fund, pension,
and gratuity provide financial security to employees after
their retirement.
(vi) Perquisites and fringe benefits are offered such as car
allowance, housing, medical aid, and education to the
children etc., over and above the salary. 2+2=
(If the examinee has listed the points only, ½ mark each to 4 marks
be awarded)

16
28 Q. Identify and give the meaning of the concepts
highlighted in the following statements :

(a) The process of finding possible candidates for a job.

(b) An assessment of the number and types of human
resources necessary for the performance of various jobs.
(c) Introducing the selected employees to other
employees and familiarising them with the rules and
policies of the onganisation.
(d) It ensures that the organisation gets the best
employees amongst the employees available.

Ans
(a) Recruitment
Recruitment may be defined as the process of searching for
prospective employees and stimulating them to apply for
jobs in the organisation.
½ mark for
(b)Workload analysis is a part of first step of staffing identification
process i.e., estimating the manpower requirements. And ½ mark
It involves assessment of the number and types of human for meaning
resources necessary for the performance of various jobs and
accomplishment of organisational objectives.

(c) Orientation
Orientation involves giving a brief presentation about the
company to the employee and introducing him/her to his/her
superiors, subordinates and the colleagues.
4 marks
(d) Selection
Selection is the process of identifying and choosing the best
person out of a number of prospective candidates for a job.
29 Q. ‘Stock Exchange not only provides liquidity and
marketability to existing securities, but performs many
other functions.’
Explain any two such functions of Stock Exchange.

Ans (a)
Functions performed by Stock Exchange (Any two)

17
 (i) Pricing of securities (½ mark for
heading+
(ii) Safety of transactions
1½ mark for
(iii) Contributes to Economic Growth explanation)
(iv) Spreading of Equity cult 2x2=
(v) Providing scope for speculation
4 marks
OR

(b) Distinguish between primary market and secondary

market on any four bases.

Ans (b)
Differences between primary market and secondary
market

(Any four)
Primary market Secondary market

There is sale of There is trading of

securities by new existing shares only.
companies or further
(new issues of securities
by existing companies
to investors).
Securities are sold by Ownership of existing
the company to the securities is exchanged
investor directly (or between investors. The
through an company is not involved
intermediary). at all.
The flow of funds is Enhances encashability
from savers to investors, (liquidity) of shares, i.e.
i.e. the primary market the secondary market
directly promotes indirectly promotes 1x 4

18
 capital formation. capital formation
Only buying of Both the buying and the
securities takes place in selling of securities can
the primary market, take place on the stock
securities cannot be sold exchange
there.
Prices are determined Prices are determined by
and decided by the demand and supply for =4 marks
management of the the security.
company.
There is no fixed Located at specified
geographical location. places
30 Q. (a) State the role of consumer organisations and non-
governmental organisations for the protection and
promotion of consumers interests on the basis of any
four points.

Ans (a)
Role of Consumer Organisations and NGOs in protecting
consumers interest : (Any four) 1x4=
(i) Educating the general public about consumer rights by
organising training programmes, seminars and
workshops.
(ii) Publishing periodicals and other publications to impart 4 marks
knowledge about consumer problems, legal reporting,
reliefs available and other matters of interest.
(iii)Carrying out comparative testing of consumer
products in accredited laboratories to test relative qualities
of competing brands and publishing the test results for the
benefit of consumers.
(iv) Encouraging consumers to strongly protest and take
action against unscrupulous exploitative and unfair trade
practices of sellers.
(v) Providing legal assistance to consumers by way of
providing aid, legal advice etc. in seeking legal remedy.
(vi) Filing complaints in appropriate consumer courts on

19
behalf of the consumers.
(vii) Taking an initiative in filing cases in consumer courts
in the interest of the general public, not for any individual.
(If the examinee has listed the points only, ½ mark each to
be awarded)

OR

(b) State any four reliefs available to the consumers if

the consumer court is satisfied about the genuineness of
the complaint.

Ans (b) Reliefs available to the consumers (Any four)

(i)To remove the defect in goods or deficiency in service.

(ii) To replace the defective product with a new one, free
from any defect.
(iii)To refund the price paid for the product or the charges
paid for the service.
(iv) To pay a reasonable amount of compensation for any
loss or injury suffered by the consumer due to negligence
of the opposite party.
(v) To pay punitive damages in appropriate
circumstances.
(vi) To discontinue the unfair/restrictive trade practice
and not to repeat it in the future.
(vii) Not to offer hazardous goods for sale.
(viii) To withdraw the hazardous goods from sale.
1x4 =
(ix) To cease manufacture of hazardous goods and to 4 marks
desist from offering hazardous services.
(x) Compensate for any loss or injury suffered by
consumer under product liability action and withdraw
hazardous products from being offered for sale etc.
(xi) To pay any amount, not less than 5% of the value of
the defective goods or deficient services, to be credited to
the Consumer Welfare Fund or any other
organisation/person, to be utilised in the prescribed

20
 manner.
(xii) To issue corrective advertisement to neutralise the
effect of a misleading advertisement.
(xiii) To pay adequate costs to the appropriate party.
31 Q. (a) Explain the following principles of management

(i) Discipline
(ii) Unity of Command
(iii) Unity of Direction

Ans (a)
(i) Discipline
• Discipline is the obedience to organizational rules
and employment agreement which are necessary for
the working of the organization.
• It requires good superiors at all levels, clear and fair
agreements and judicious application of penalties.
(ii) Unity of command
2x3
• It says that there should be one and only one boss
for every individual employee.
• Dual subordination should be avoided. This is to
=
prevent confusion regarding tasks to be done.
6 marks
(iii)Unity of direction
• Each group of activities having the same objective
must have one head and one plan.
• This ensures unity of action and coordination.

OR
(b) Explain the following techniques of Scientific
Management:
(i) Fatigue study
(ii) Motion study
(iü) Time study

Ans (b)
(i) Fatigue study
• It seeks to determine the amount and frequency of rest
intervals in completing a task.
21
 • A person is bound to feel tired physically and
mentally if he/she does not rest while working. The
rest intervals will help one to regain stamina and
work again with the same capacity.
(ii) Motion study
2x3
• It refers to the study of movements like
lifting, putting objects, sitting, etc. which =
are undertaken while doing a typical job.
• Unnecessary/unproductive movements are
sought to be eliminated so that it takes less
time to complete the job efficiently.

(iii) Time Study

• It determines the standard time taken to

perform a well-defined job.
• The objective of time study is to determine the
number of workers to be employed; frame
6 marks
suitable incentive schemes and determine
labour costs.

32 Q. ‘Setting objectives is the first step in the process of

one of the significant functions of management.’
(a) Identify the function of management referred
above.
(b) State the next five steps of the process.

Ans
(a) Planning
1 mark
(b) Next five steps of the process of planning :
(i) Developing planning premises is the next step in the
process of planning. Planning premises are the
assumptions that serve as the base material upon which
plans are to be drawn.

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 (ii) Identifying alternative courses of action which may be
used to achieve the set objectives.

(iii)Evaluating alternative course of action involves

evaluating the positive and negative aspects of each 1x5=5
proposal in the light of the objective to be achieved.

(iv) Selecting the best alternative is the real point of

decision making and involves selecting the best possible
course of action. 1+5=
6 marks
(v) Implementing the plan is the step where other
managerial functions also come into the picture.
(If the examinee has listed the points only, ½ mark each to
be awarded)
33 Q. ‘Sweets and More’ is one of India's most popular
brand for snacks and sweets, It offers a wide range of
sweets, namkeens, cookies and frozen foods.
Its organisational structure comprises of separate
business units in each of the above categories. Each of
these units have a manager responsible for performance,
having authority over the unit. Moreover, each of these
units is multi-functional as within each unit, different
functions like production, marketing. finance, etc. are
performed. Though this kind of organizational structure
leads to increased cost because of duplication of
activities across products, but it provides a proper basis
for performance measurement as revenues and costs
related to each of these business units can be easily
identified.

(a) Identify the organisational structure of ‘Sweets and

More.’
(b) State three advantages and two disadvantages of the
organisational structure identifed in (a) above which are
not discussed in the above case.

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 Ans
(a) Divisional structure
1 mark

(b) Three advantages of divisional structure:

i) Product specialisation helps in the development of
varied skills in a divisional head and this prepares
him for higher positions. This is because he gains
experience in all functions related to a particular
product.
ii) It promotes flexibility and initiative because each
division functions as an autonomous unit which
leads to faster decision making.
iii) It facilitates expansion and growth as new
divisions can be added without interrupting the 3 marks
existing operations by merely adding another
divisional head and staff for the new product line.

Two disadvantages of divisional structure:

i) Conflict may arise among different divisions with
reference to allocation of funds and further a
particular division may seek to maximise its
profits at the cost of other divisions.
ii) It provides managers with the authority to 2 marks
supervise all activities related to a particular
division. In course of time, such a manager may
gain power and in a bid to assert his independence 1+3+2=
may ignore organisational interests. 6 marks
(If the examinee has listed the points only, ½ mark each to
be awarded)
34 Q. ‘X Ltd.' is engaged in the manufacturing of cars. The
company surveyed the market and found that customers
need a car which runs on eco-friendly fuel instead of
petrol or diesel. Keeping the needs of customers as well
as social, ethical and ecological aspects of marketing in
mind, the company launched a new model of car that
runs on bio-diesel. The launch event was covered by the
top news channels and newspapers. This was done to
disseminate information about the car and build
goodwill of the business. ‘X Ltd.' understands that it is

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imperative to manage public opinion and company's
relations with the public on a regular basis.
(a) Identify and explain the marketing philosophy
involved in the above caşe.
(b) Identify and explain the communication tool that
was used by the company.
(c) Explain any two other promotional tools that can be
used by ‘X Ltd' to achieve its objectives

Ans
(a) Societal Marketing Concept
The societal marketing concept holds that the task of any
organisation is to identify the needs and wants of the 1 mark for
target market and deliver the desired satisfaction in an identification
effective manner so that the long-term well-being of the + 1 mark for
explanation
consumers and the society is taken care of. i.e,1+1=2

(b) Public Relations

Public relations involves a variety of programmes
designed to promote or protect a company’s image and its
individual products in the eyes of the public. Concrete 1 mark for
steps are to be taken to monitor the attitude of the general identification
public and generate positive publicity. + 1 mark for
explanation
i.e,1+1=2
(c) Other promotional tools that can be used by X Ltd:
(Any two)
(i)Advertising – It refers to impersonal form of
communication which is paid for by an identified
sponsor/marketer to promote some goods, services, or
ideas.
(ii) Sales promotion : It refers to short term incentives, 1+1=2
which are designed to encourage the buyers to make
immediate purchase of a product or service.
(iii) Personal Selling: Personal selling involves oral
presentation of message in the form of conversation with
2+2+2=

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one or more prospective customers for the purpose of 6 marks
making sales.

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