BLUE PRIENT Units| Very short answer1| Short answer I&II(3,4)| Long answer I&II(5,6)| Total| Unit—1 (7)| 1(2)| --| 5(1)| 7(3)| Unit—2 (7) | 1(2)| --| 5(1)| 7(3)| Unit—3 (5) | 1(2)| 3(1)| --| 5(3)| Unit—4 (7)| --| 3(1),4(1)| --| 7(2)| Unit—5 (10)| --| 4(1)| 6(1)| 10(2)| Unit—6 (8)| --| 3(1)| 5(1)| 8(2)| Unit—7 (10)| 1(1)| 3(1)| 6(1)| 10(3)| Unit—8 (6)| 1(2)| 4(1)| --| 6(3)| Unit—9 (12)| 1(1)| --| 5(1),6(1)| 12(3)| Unit—10 (8)| --| 4(2)| --| 8(2)|

Unit—11 (14)| --| 3(1)| 5(1),6(1)| 14(3)| Unit—12 (6)| --| --| 6(1)| 6(1)| Total| 10(10)| 35(10)| 55(10)| 100(30)| BUSINESS STUDIES CLASS XII-Pre-board 2012 Time Allowed: 3 Hours Maximum Marks: 100 General Instructions 1. Answer to questions carrying 1 mark may be from one word to one sentence 2. Answer to questions carrying 3 marks may be from 50 to 75 words 3. Answer to questions carrying 4-5 marks may be about 150 words 4. Answer to questions carrying 6 marks may be about 200 words 5. Attempt all parts of a question together.

Q1. Which Principal suggests that there should be only one and one boss for every individual employee1 Q2. It refers to the use of scientific method in decision making to resolve management problems rather than depending on rule of thumb or trial and error method. Name it1 Q3. Which environment prohibits the environment of alcoholic beverages1 Q4. Planning is an activity which enables a manager to look ahead and anticipate changes. Mention the benefit of planning highlighted here. 1 Q5. Policies and procedures are interlinked with each other. How? 1

Q6. It implies introducing the selected employees to other employees and familiarizing him with the rules and policies of the organization. Name it. 1 Q7. It seeks to attract suitable applicants to apply for available jobs. Give the term1 Q8. Name the concept which suggest that only one significant deviation which go beyond the permissible limit should be brought to the notice of management. 1 Q9. What does consumer protection act 1986 aim at? 1 Q10. Arpit wants to buy an iron. As an aware customer how can he be sure about the quality of iron? 1 Q11.

Explain any three characteristics of coordination. 3 Q12. Enumerate any three important decisions taken in financial management. 3 Q13. Explain any three features of financial market? 3 Q14. How does marketing satisfy the wants of people? 3 Q15. What do you mean by Gross working capital? 3 Q16. In spite of best efforts of managers sometime planning fails to achieve desired results due to its limitations. Explain any four limitations of planning 4 Q17.

Distinguish between delegation and decentralization of authority on the following bases: (I) Nature (II) Purpose (III) Freedom of action (IV) Level of authority4 Q18: “controlling is an indispensable function of management” Do you agree? Give any four reasons to support your answer. 4 Q19: Explain the various money market instruments. 4 Q20. The directors of a newly established company having paid up equity share capital of Rs. 2. 5 crores, desire to get its shares traded at an All India level Stock Exchange. As finance manager of the company, suggest the name of stock exchange for the purpose.

Give any three reasons to support your answer. 4 Q21. Raman is working as ‘Plant Superintendent’ in Tifco Ltd. Name the managerial level at which he is working? State any four functions he will perform as plant superintendent in this company. 5 Q22. ‘Taylor’s principles of scientific management and Fayol’s principles of management are mutually complementary’. Do you agree with this view? Give any five reasons. 5 Q23. Explain the external sources of recruitment of workers. 5 Q24. What is meant by the term capital structure? Briefly explain any four factors that affect the capital Structure of a company. Q25. Distinguish between Marketing and Selling. 5 Q26. What is meant by formal organisation? Explain any five features of formal organisation. OR Explain the importance of organising as a function of management. 6 Q27. Explain the principles of Directing. OR ‘Supervision is not at all required in an organisation’ Do agree? Give five reasons to support your answer. 6 Q28. What is required to tackle the uncertainty in respect of availability and timings of funds? Name the concept involved and explain any five points of its importance OR Explain the factors determining the amount of fixed capital6

Q29. Explain any six functions of marketing6 OR Briefly explain the different factors that determine the choice of channels of distribution for any product6 Q30. Explain any six rights of a consumer under the Consumer Protection Act 1986. OR Explain any six responsibilities of a consumer to safeguard their interest. 6 Suggested Answers with Marking Scheme Ans. 1: Unity of command Ans. 2: Science, not rule of thumb Ans. 3: legal environment Ans. 4: planning reduces the risk of uncertainty Ans. 5: procedures are steps to be carried out within a broad policy framework Ans. 6: Orientation

Ans. 7: Recruitment Ans. 8: Management by exception Ans. 9: To protect and promote the consumers’ interest through speedy and inexpensive redressal of their grievances Ans. 10: Ahmad should look ISI mark/Standardization mark on iron Ans. 11: * Co-ordination integrates group efforts. * Coordination is a deliberate function * Coordination is all pervasive. (one mark for each characteristic) Ans. 12: Following are the main decisions which are involved in Financial Management are: (i) Investment Decision (ii) Financing Decision (iii) Dividend Decision ( Only meaning with brief explanation) one mark for every decision) Ans. 13: one mark for every feature Ans. 14: (a) product planning and development according to customer’s need (b) supplying the required product at reasonable price (c) providing after sale service in case of durable goods Ans. 15: Gross working capital refers to the investment in all the current assets i. e. , cash, stock, receivables, and prepaid expenses taken together. It is also called total working capital. Ans. 16: * Planning creates rigidity. * Planning does not work in a dynamic environment. * Planning reduces creativity. * Planning involves huge cost. Planning is a time consuming process. * Planning does not guarantee success. Ans. 17: Decentralisation| Delegation of authority| 1. It is not necessary and work can proceed in its absence. 2. The purpose is reduction of the workload of an officer. 3. More freedom. Under this most often, the delegator looses the control on his subordinate. 4. At various levels. | 1. Delegation of authority is inevitable and work cannot proceed in its absence. 2. The purpose is expansion of the authority in an organisation. 3. Less freedom. Under this even after delegating authority, has full control on his subordinates. . May be at some particular level. | one mark for each difference. Ans. 18: * Accomplishing organisational goals. * Judging accuracy of standards. * Making efficient use of resources. * Improving motivation of employees. * Ensuring order and discipline. * Facilitating coordination in action. (one mark for each reason-any four with brief description) Ans. 19: * Treasury Bill * Commercial Paper * Call Money or Call Loans * Certificate of Deposits * Commercial Bill one mark for every instrument ( any four with meaning ). Ans. 20: one mark for the name of Stock Exchange ( i. . OTCEI ) and three marks for three reasons. Ans. 21: Middle level Management. * Interpreting policies * Preparing organisational set up * Appointing employees * Issuing instruction * Motivating employees * Creating co-operation (one mark for managerial level and four marks for four functions with brief explanation. ) Ans. 22 : * Solution to managerial problems * Stress on practical aspect * Stress on good industrial relations * An effort to increase the overall efficiency of organisation (one mark for every reason. ) Ans. 23 : Sources of external recruitment: i) Direct recruitment (ii) Casual callers(iii) Media advertisement (iv)Employment exchanges (v)Placement agencies(vi)Campus recruitment(vii)Recommendations(viii)Telecasting (ix)Labour contractors (x)Head hunters (Students are advised to elaborate any five sources of the above) (Five marks for any five external sources of recruitment. ) Ans. 24: Capital structure- It refers to relative proportion of different sources of long term finanace. Factors affecting the choice of capital structure: (i) Cash flow position-While making a choice of the capital structure the future cash flow position should be kept in mind. ii) Interest coverage ratio- With help of this ratio an effort is made to find out how many times is the EBIT available to the payment of interest. (iii) Debt Service coverage ratio- This ratio removes the weaknesses of ICR. This shows the cash flow position of the company. (iv) Return on investment- The greater return on investment of a company increases its capacity to utilise more debt capital. (v) Cost of debt- The capacity of a company to take debt depends on the cost of debt. In the case of rate of interest on the debt capital is less, more debt capital can be utilised and vice versa. One mark for meaning of capital structure and four marks for four factors. ) Ans. 25: Selling| Marketing| 1. Its scope is narrow. 2. The main focus is on the transfer of ownership of the product from the seller to the buyer. 3. Selling activity start after the production of the goods and ends with the sell of the product. 4. Sellers’ satisfaction is emphasised. 5. To earn profit, sales is maximised. | 1. Its scope is broad. 2. The main focus is on achieving maximum satisfaction of the customers’ needs. 3. It starts the moment idea of producing the goods comes to mind.

And ends with the satisfaction of the customer. 4. Customers’ satisfaction is emphasised. 5. To earn profit priority is given to consumers’ satisfaction. | (Five marks for any five points of distinction. ) Ans. 26: one mark for meaning of formal organisation and five marks for any five features OR Six marks for six importance of organising Ans. 27 : six marks for six principles of Directing OR one mark for giving answer in ‘NO’ and five marks for five reasons Ans. 28: one mark for concept ( i. . financial planning ) and five marks for any five importance OR Amount of fixed capital depends upon the following factors: (i) Nature of business. (ii) Scale of operations(iii) Choice of technique. (iv)Technology up gradation. (v) Growth prospects (vi)Diversification. (Each with brief explanation, Six marks for six factors ) Ans. 29: * Gathering and analysing market information. * Marketing planning * Product designing and development * Standardisation and grading * Packaging and labelling * Branding * Customer support services Pricing of products * Promotion * Physical distribution * Transportation * Storage or warehousing. (Six marks for six functions with brief explanation) OR . (i) Unit value of the product – when a product is very costly it is best to use small distribution channel and vice versa. (ii) Perishability - A manufacturer should choose minimum channels of distribution for such an item or product which is highly perishable in nature and vice versa. (iii) Technical nature- If the product of a technical nature than it is better to supply it directly to the customer. iv)Number of buyers-In case the number of buyers are large, the help of middlemen will be better option. On the contrary, the distribution should be done by the manufacturer directly if the number of buyers is less. (v)Size of market-If the area of the product is scattered fairly then producer must take help of middlemen. (vi)Desire to control the channel of distribution. Six marks for six factors ( one mark for each factor ) Ans. 30: six marks for six rights ( one mark for each right ) OR Six marks for six responsibilities ( one mark for each responsibility )