Marking Scheme

Strictly Confidential
(For Internal and Restricted use only)
Senior School Certificate Examination, 2023
SUBJECT NAME :BUSINESS STUDIES (66/2/1)

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.

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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”.

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 un assessed 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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 MARKING SCHEME
Senior Secondary School Examination, 2023
BUSINESS STUDIES (Subject Code — 054)
[ Paper Code — 66/2/1]
Q. No. EXPECTED ANSWER / VALUE POINTS Marks

1. Q. Akash works as a production manager in 'Elite

Enterprises' manufacturing LED lights. Due to festive
season, there is lot of demand for their lights. Akash
was given the task of producing 100 units of LED lights
@ ₹200 per unit within 5 days for an urgent order.
Akash was able to achieve the target of 100 units of
LED lights within 5 days @ ₹220 per unit. Identify from
the following whether Akash is:
(a) Efficient only
(b) Effective only
(c) Both efficient and effective
(d) Neither efficient nor effective

Ans. (b) Effective only 1 mark

2. Q. Which of the following items is a component of

economic environment?
(a) Expansion of transportation and communication
services in Delhi.
(b) Facility of booking train tickets, through mobile
apps.
(c) Restriction on 15-years-old petrol vehicles plying
on roads in Delhi.
(d) The Haryana Government's announcement of free
bus rides females on the occasion of
Rakshabandhan.

Ans. (a) Expansion of Transportation and communication 1 mark

services in Delhi.

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3. Q.

Identify the type of organization structure depicted in

the above diagram:
(a) Divisional structure
(b) Functional structure
(c) Informal Structure
(d) Both Informal and Functional Structure

Ans. (a) Divisional structure 1 mark

4. Q. With a revolution taking place in the manufacturing

of mobile phones with super class cameras, the business
of cameras in the consumer market has taken a hit.
Studies show that mobile phone photography has
devastated the camera industry.
The dimension of business environment highlighted
in the above case is:
(a) Economic Environment
(b) Technological Environment
(c) Social Environment
(d) Political Environment

1 mark
Ans.(b) Technological Environment

5. Q. Which of the following features of ‘Management as

an Art' highlights that every manager applies his
knowledge of principles in his own way to deal with a
given situation?
(a) Ethical code of conduct
(b) Existence of theoretical knowledge
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 (c) Personalised application
(d) Universal Validity
1 mark
Ans. (c) Personalised application

6. Q. ‘M/s J.K. Computers’ is a small organisation

engaged in assembling of computers. In this
organisation, decision making rests with top
management while the middle level is involved in only
the implementation of plans. On the other hand,
‘Progressive Computers Ltd.' is a large company
where a number of people from each level are
involved in the decision-making process.
The application of the principle of ‘Centralisation
and Decentralisaton' is different in the two
organisations as the situation in each enterprise is not
same.
From the following identify the nature of principles of
management:
(a) Mainly Behavioural
(b) Contingent
(c) Flexible
(d) Universal

1 mark
Ans. (c) Flexible

7. Q. The management of a bag manufacturing company

has recently changed. Due to this, an improvement can
be felt in the way company functions. Now, targets are
met according to plans, whereas, earlier deadlines
were never given importance. Now there is orderliness,
instead of chaos in the organisation and the employees
are happy and satisfied.
From the following identify the characteristic of
management which is highlighted in the above case:
(a) Management is dynamic.
(b) Management is a continuous process.
(c) Management is a group activity.

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 (d) Management is an intangible force.

Ans. (d) Management is an intangible force 1 mark

8. Q. In an organisation, coordination is the function of

every manager. Top level managers need to
coordinate with their subordinates to ensure that the
overall plans of the organisation are duly carried out.
Middle level managers coordinate with both the top
level and the supervisory level managers. Supervisory
level managers coordinate the activities of workers
to ensure that work proceeds according to plans.
The characteristic of coordination discussed in the
above para is:
(a) Coordination is a continuous process
(b) Coordination is a deliberate function.
(c) Coordination is the responsibility of all Managers.
(d) Coordination integrates group efforts.

Ans. (c) Coordination is the responsibility of all 1 mark

managers.

9. Q. Gitanjali Makan is a successful business leader.

She believes that if jobs are made interesting by
including greater variety of work content and
providing a meaningful work experience, the jobs
themselves become a source of motivation to
individuals.
The non-financial incentive that has been discussed in
the above case is:
(a) Employee participation
(b) Job Enrichment
(c) Career Advancement Opportunity
(d) Job Security
1 mark
Ans. (b) Job Enrichment

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10. Q. ‘RP Infotech Ltd.’ decided to approach ‘Patel
Engineering College’ to recruit qualified personnel for
various technical jobs in its newly opened branch in
Surat.
Which source of recruitment from the following has
been used by ‘RP Infotech Ltd.' in the above case:
(a) Direct Recruitment
(b) Placement Agencies and Management Consultants
(c) Campus Recruitment
(d) Recommendation of employees

1 mark
Ans. (c) Campus Recruitment

11. Q. ‘An organisation structure is deliberately designed

by the top management to facilitate smooth
functioning of the organisation.’
Which of the following is not a feature of such a
structure?
(a) It clarifies who has to report to whom.
(b) There is systematic coordination among the various
activities to achieve organisational goals.
( c) The standards of behaviour evolve from group
norms rather than officially laid down rules and
regulations.
(d) It places more emphasis on work to be performed
than interpersonal relationships among the employees

Ans. (c) The standards of behaviour evolve from group 1 mark

norms rather than officially laid down rules and
regulations.

12. Q. Statement -I: Capital market instruments are

considered riskier both with respect to returns
and principal repayment.
Statement -II: Capital market investment generally
yields a higher return for investors.
Choose the correct option from the options given below:

(a) Statement - I is true and II is false.

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 (b) Statement- II is true and I is false.
(c) Both the statements are true.
(d) Both the statements are false.
1 mark
Ans. (c) Both the statements are true.

13. Q. Match the various items of Column - I with the

respective statement in Column-II.
Column- I Column- II
a. Advertising (i) Creates a positive image
about the company and its
products.

b. Personal selling (ii) Paid form of impersonal

communication.

c. Public relations (iii) Develop Personal

relationship with the
prospective buyer.
a b c
(a) (ii) (iii) (i)
(b) (i) (iii) (ii)
(c) (iii) (ii) (i)
(d) (ii) (i) (iii)

1 mark
Ans. (a) a (ii), b (iii), c (i)

14. Q. When the proportion of debt and equity is such that

it results in an increase in the value of equity share
the ___________is/are said to be optimal.
(a) working capital (b) fixed capital
(c) capital structure (d) Both (a) and (b)

1 mark
Ans. (c) Capital structure

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15. Q. The function of marketing ensures the buyers that
goods confirm to predetermined standards of quality
and reduces the need for inspection. It also ensures
that goods belong to a particular quality and helps in
realising higher prices for high quality output.
(a) Product Designing and Development
(b) Standardisation and Grading
(c) Marketing Planning
(d) Branding
1 mark
Ans. (b) Standardisation and Grading

16. Q. 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) Prices are determined by demand and supply of the
security.
(d) It directly promotes capital formation.

Ans. (c) Prices are determined by demand and supply of 1 mark

the security.

17. Q. In which of the following situations, a company will

fix high price for its product?
(a) When firm's objective is to obtain larger share of the
market.
(b) When the firm is facing difficulties in surviving in
the market because of intense competition.
(c) When the firm wants to cover high cost of Research
and Development to attain product quality
leadership.
(d) When the firm wants to maximise its total profit in
the long run.

1 mark

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 Ans. (c)When the firm wants to cover high cost of
Research and Development to attain product quality
leadership.

18. Q. Which of the following will not be considered as

consumers as per Consumer Protection Act, 2019?
(a) A person, who avails any service for a consideration
which has been partly paid.
(b) Any user of goods if such use is made with the
approval of the buyer.
(c) A person who purchases goods through online
means.
(d) A person who obtains goods for resale purposes.
1 mark
Ans. (d) A person who obtains goods for resale purposes.

19. Q.As per Consumer Protection Act, 2019, “the

consumer has a right to get relief in case the product
or service falls short of his expectations.”
Which consumer right is discussed in the above
statement?
(a) Right to be heard (b) Right to be assured
(c) Right to seek redressal (d) Right to safety

Ans. (c) Right to seek redressal 1 mark

20. Q. Which of the following is not a function of

Securities and Exchange Board of India (SEBI) ?
(a) Training of intermediaries of the securities market
(b) Controlling insider trading
(c) Registration of brokers and sub-brokers and other
players in the market
(d) Pricing of securities

Ans. (d) Pricing of securities 1 mark

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21. Q. The students of Class XII of ‘NK Senior Secondary
School' visited the factory of ‘Jaipur Exports Private
Limited', a company manufacturing readymade
garments. They observed that different workers were
allocated different tasks like cutting the fabric as per
specification, stitching dresses, putting buttons,
ironing the finished dresses, packing them and
putting labels. The Chief Executive Officer told the
students that this results in efficient and effective
output. They also observed orderliness in the factory
as there was a fixed place for everything and it was
present there.
The students later discussed with their Business
Studies teacher and understood that principles of
management given by Fayol were being followed in
the factory.
Identify and explain the two principles of
management that have been discussed in the above
case.

Ans.

(i) Division of work ½ mark for

identification
 According to the principle of Division of Work, of each
work is divided into small tasks/ jobs. principle
 A trained specialist who is competent is required + 1 mark for
to perform each job, leading to specialisation. its
This results in effective and efficient output. explanation

(ii) Order =1½ x2

 The principle of order states that ‘A place for
everything (everyone) and everything
(everyone) in its (her/his) place’. Essentially it =3 marks
means orderliness.

 If there is a fixed place for everything and it is

present there, then there will be no hindrance in
the activities of business/ factory. This will lead
to increased productivity and efficiency.

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22. Q. 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. ½ mark for
identification
Ans. Incentives offered by the company of each
incentive
(i) Perquisites
Perquisites such as car allowance, housing and medical
aid etc., are offered to employees over and above the + ½ mark for
salary to provide motivation to them. its statement

(ii) Retirement benefits

Retirement benefits such as provident fund, pension and =1 x 3
gratuity, which provide financial security to employees = 3 marks
after their retirement, act as an incentive when they are in
service in the organisation.

(iii)Career Advancement Opportunity

Career Advancement Opportunity includes opportunities
provided to employees to improve their skills and be
promoted to the higher-level jobs.

23. Q. (a) Explain Vestibule Training as a method of

training.

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 Ans. Vestibule Training = 13

 It is an off-the-job method of training in which

= 3 marks
employees learn their jobs on the equipment
they will be using, but the training is conducted
away from the actual work floor.

 Actual work environments are created in a

classroom and employees use the same
materials, files and equipment.

 This is usually done when employees are

required to handle sophisticated machinery and
equipment.

OR OR

(b) Explain any three benefits of training to the

employees.
Ans Benefits of training to the employees (Any three):

(i) Improved skills and knowledge due to training lead

to better career of the individual.
= 13
(ii) Increased performance by the individual helps him
to earn more. = 3 marks
(iii) Training makes the employee more efficient to
handle machines, thus, less prone to accidents.

(iv) Training increases the satisfaction and morale of

employees.

24. Q. (a) State any three points of importance of Financial

Planning.
Ans Importance of Financial Planning (any three):

(i)It helps in forecasting what may happen in future

under different situations and face the eventual situation
in a better way.
= 13

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(ii) It helps in avoiding business shocks and surprises
and helps the company in preparing for the future. =3 marks

(iii) It helps in co-ordinating various business functions,

like sales and production functions, by providing clear
policies and procedures.

(iv) It helps to reduce waste, duplication of efforts and

gaps in planning.

(v) It tries to link the present with the future.

(vi) It provides a link between investment and financing

decisions on a continuous basis.

(vii) It makes the evaluation of actual performance

easier.
OR
OR

(b) State any three factors that determine the

requirement of fixed capital of a company.

Ans. Factors affecting Requirement of Fixed Capital

(Any three):

(i) Nature of business as a trading concern needs lower

investment in fixed assets compared with a
manufacturing organisation.

(ii) Scale of operation as a large organisation operating

at a higher scale needs higher investment in fixed assets
as compared to a small organisation. = 13

(iii)The choice of technique is a factor affecting

=3 marks
requirement of fixed capital as a capital- intensive
organisation requires higher investment in plant,
whereas a labour-intensive organisation requires less
investment in fixed assets.

(iv) Higher investment in fixed assets may be required

in certain industries where assets become obsolete
14
 sooner and need to be replaced faster due to technology
upgradation.

(v)Higher growth of an organisation generally requires

higher investment in fixed assets, consequently larger
fixed capital.

(vi)With diversification, fixed capital requirement

increases as more investment is to be made in fixed
assets.

(vii)The financing alternatives affect the requirement of

fixed capital as availability of leasing facilities may
reduce the funds required to be invested in fixed assets
as compared to buying an asset.

(viii) Collaboration reduces the level of investment in

fixed assets as organisations share each other’s
facilities.

(If an examinee has only listed the points, ½ mark for

each point should be awarded.)

25. Q. (a) State the first four steps involved in the process
of choosing the best candidate out of a number of
prospective candidates for a job.

Ans First four steps in Selection Process:

(i)Preliminary Screening: It helps to eliminate

unqualified or unfit job seekers, based on the
information supplied in the application forms. =1x4
(ii)Selection Tests: Selection tests attempt to measure
certain characteristics of individuals like aptitude, =4 marks
intelligence, etc.

(iii)Employement Interview: Interview is a formal, in-

depth conversation conducted to evaluate the
applicant’s suitability for the job.

(iv)Reference and Background Checks: Employers

contact references specified by the applicant for the

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 purpose of verifying information and gaining additional
information on an applicant.

OR
b) State any four benefits of using internal sources of
recruitment.

Ans. Benefits of using Internal Sources (Any four):

(i)Employees are motivated to improve their

performance through learning and practice and remain
satisfied with their jobs.

(ii)It simplifies the process of selection and placement

since the candidates are already known to the
organisation.

(iii)People recruited from within the organisation do not

need induction training. Transfer is a tool of training the
employees to prepare them for higher jobs. =14
(iv)Transfer has the benefit of shifting workforce from =4 marks
surplus departments to those where there is shortage of
staff.

(v)Filling jobs internally is cheaper as compared to

getting candidates from external sources.

26. (a) Explain any two points highlighting the importance

of controlling function of management.

Ans Importance of Controlling Function (any two with

explanation): 1 mark for
naming
(i) Accomplishing organisational goals
+
(ii) Judging accuracy of standards 1 mark for its
explanation
(iii) Making efficient use of resources
= 22
(iv) Improving employee motivation =4 marks
(v) Ensuring order and discipline

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 (vi) Facilitating coordination in action

OR

(b) Explain any two points describing the relationship

between ‘planning’ and 'controlling'.

Ans. Relationship between ‘planning’ and ‘controlling’

(Any two with explanation):
2 marks for
(i) Controlling takes place on the basis of standards each point
developed by planning.

(ii) Planning without controlling is meaningless as =2+2

controlling ensures that the events conform to plans.

(iii)Planning prescribes an appropriate course of action =4 marks

for achieving objectives whereas controlling evaluates
whether decisions have been translated into desired
actions or not.

(iv) Planning and controlling are both forward-looking

as well as looking back.

27. Q. Balvinder is the Production Manager of ‘Pramod

Tea Company' in Guwahati. He gives orders to his
subordinates and expects that they obey those orders.
He does not consult them nor encourage them to
participate in decision making.
(i) Identify and state the leadership style adopted by
Balvinder.
(ii) When can this style be effectively used by a 1 mark for
manager? State. identification
+
Ans. (i) Autocratic or Authoritarian style 1 mark for its
statement
An autocratic leader gives orders and expects his +
subordinates to obey those orders.
1 mark for
each situation
17
 (ii) Autocratic style can be effectively used by a
= 1+1+2
manager in the following situations:
=4 marks
(a) Where the supervisor is responsible for production
on time and has to ensure labour productivity.
(b) where quick decision-making is needed.

28. Q. Identify the financial decision that is concerned

with deciding how much of the profit earned by a
company is to be distributed to shareholders and
how much should be retained in the business. Also
state any three factors affecting the identified
decision.

Ans. Dividend Decision

1 mark for
Factors affecting Dividend Decision (Any three): identification
+
(i) Amount of Earnings affect dividend as they are paid
out of current and past earnings. 1 mark for
each factor
(ii) A company having stable earnings is in a better
position to declare higher dividends as compared to a
company with unstable earnings.
= 1+3
(iii) Companies generally follow a policy of stabilising
dividend per share and the increase in dividend is
generally made when the earning potential goes up. =4 marks

(iv) Companies having good growth opportunities

retain more money out of their earnings so as to finance
the required investment and the dividend is, therefore,
smaller.

(v) Availability of enough cash in the company is

necessary for declaration of dividend.

(vi) If shareholders prefer that at least a certain amount

is paid as dividend, the companies are likely to declare
the same.

18
 (vii) If tax on dividend is higher, it is better to pay less
by way of dividends as compared to low Dividend
Distribution Tax.

(viii) The possible impact of dividend policy on the

equity share price or the way the stock market will react
to it is an important factor considered by the
management while taking a decision about it.

(ix) Large and reputed companies generally have easy

access to the capital market, and therefore, may depend
less on retained earnings to finance their growth, and
therefore, pay high dividends.

(x) Certain legal constraints like provisions of the

Companies Act place restrictions on payouts as
dividends, which must be adhered to while declaring
the dividend.

(xi) The companies are required to ensure that the

dividend payout does not violate the terms of any
contract, like a loan agreement, in this regard.

(If an examinee has only listed the points, ½ mark for

each point should be awarded.)

29. Q. ‘Zenith Mall’ is a famous shopping mall in Mumbai,

owned by ‘Pinnacle Group'. It is very popular for its
international and national brands of fashionable
clothes, restaurants, cinema halls and food courts.
The management of Pinnacle Group has decided to
open a new branch of the mall in Pune. This decision
was very crucial for the management as it involves
huge amounts.
(i) Identify and state the financial decision involved in
the above cane.
(ii) State any two factors affecting the decision
identified in (a) above.

Ans.
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 (i) Investment decision 1 mark for
The investment decision relates to how the firm’s identification
funds are invested in different assets. +1 mark for
the statement
(ii) Factors affecting Investment decision (any two): +
(a) A company should carefully analyse the cash flows 1 mark for
that will be generated over the period as a series of each factor
cash receipts and payments over the life of an
investment.
=2+2
= 4 marks
(b) The rate of return expected from a proposal involving
huge sums is a factor affecting investment decision.

(c) There are different investment criteria involved with

each proposal like the amount of investment, interest
rate, etc. which should be considered before selecting
a particular project.

30. Q. Rajneesh purchased a 500 ml bottle of fruit juice for

₹60 in Ahmedabad from a local store. While consuming
it, he found an insect floating in it. He sent a legal notice
to the company immediately and decided to approach
a Consumer Disputes Redressal Agency for a relief of
₹2 lakhs.

(i) Which Consumer Disputes Redressal Agency did

Rajneesh approach, out of the three-tier machinery
set up under Consumer Protection Act, 2019 for
redressal?

(ii) If Rajneesh is not satisfied by the order of the above

Agency, where can he appeal against such order and
within how many days?

(iii) State any two reliefs that can be granted to

Rajneesh in the above case.

Ans. (i) Rajneesh can approach District Consumer

Disputes Redressal Commission (District Commission). 1

20
 (ii) If Rajneesh is not satisfied by the order of District
Consumer Disputes Redressal Commission (District +
Commission), he can appeal against such order to the State
Consumer Disputes Redressal Commission (State
½+½
Commission) within 45 days from such order.

(iii) Reliefs that can be granted to Rajneesh (any two):

(a)To replace the defective product with a new one. +
(b)To refund the price paid for the product.
(c)To pay a reasonable amount of compensation for any
loss suffered by the consumer due to the negligence of
the opposite party.
(d)To pay punitive damages.
(e)Not to offer such (hazardous) goods for sale. 1x2
(f)To withdraw such (hazardous) goods from sale.
(g) To cease to manufacture of such (hazardous) goods.
(h) Compensate for any loss or injury suffered by
consumer under product liability action and withdraw
hazardous products from being offered for sale etc. = 1+1+2
(i) To pay any amount (not less than 5% of the value of 4 marks
such goods) to be credited to Consumer Welfare Fund
or any other organisation/person to be utilised in the
prescribed manner.
(i) To pay adequate costs to the appropriate party.

31. Q. (a)Explain any three points that highlight the

importance of Management'.

Ans. Importance of Management (Any three with ½ mark for

explanation) naming
+ 1 ½ mark
(i)Management helps in achieving group goals for
(ii)Management increases efficiency explanation

(iii)Management creates a dynamic organisation =2x3

(iv)Management helps in achieving personal objectives
= 6 marks
(v)Management helps in the development of society
21
 OR OR

(b) Explain the following techniques of scientific

management:
(i)Differential Piece wage system
(ii) Time Study
(iii) Method Study

Ans. (i) Differential Piece wage system

 Differential Piece Wage System is a technique which
differentiates between efficient and less efficient
workers. It rewards the efficient workers and
motivates the less efficient ones to improve their
efficiency. 2
 In this plan, there are two piece rates – one for those
workers who produce above the standard output, and
the other for those who produce less than the standard
output.
+
(ii) Time
Study
 Time study is a technique which determines
2
standard time required to perform a well-defined
job.
 The objective of time study is to determine the
number of workers to be employed, frame suitable +
incentive schemes and determine labour costs.

(iii)Method Study
 Method study is a technique to find out the one best 2
way of doing the job.
 The objective of method study is to minimise the = 6 marks
cost of production and maximise the quality and
satisfaction of the customer.

32. Q. (a) Planning is important as it provides directions

for action, reduces the risks of uncertainty and
facilitates decision making' Explain.

22
Ans

Provides direction – Planning ensures that the goals or 2

objectives are clearly stated so that they act as a guide
for deciding what action should be taken and in which
+
direction.

Reduces the risk of uncertainty – By deciding in 2

advance the tasks to be performed, planning anticipates
the changes and managerial responses to them can be
developed, thereby, reducing the risk of uncertainty. +

2
Facilitates decision-making – Planning helps the
manager to look into the future and make a choice from
amongst various alternative courses of action by =6 marks
evaluating them.

OR

(b) Delegation of authority ‘Develops employees',

‘Motivates them' and ‘Facilitates growth.' Explain
how.

Ans.
2
Develops Employees -As a result of delegation,
employees get more opportunities to utilize their talent
+
and allows them to develop those skills which enable
them to perform complex tasks. Delegation helps them
to prepare better future managers.
2
Delegation motivates employees-

Responsibility for work builds the self-esteem of an

employee and improves his confidence. He feels
+
encouraged and tries to improve his performance
further.
2
Delegation facilitates growth -Delegation helps in the
expansion of an organization by providing a ready
workforce to take up leading positions in new ventures. =6 marks
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 Trained and experienced employees are able to play
significant roles in the launch of new projects.

33. Q. ‘Maharana' is a famous take-away food outlet in

Meerut. It is quite popular among local people and
travellers on the national highway.
It offers a wide variety of ‘paranthas' and
'sandwiches' packed in special containers which are
designed and developed by them to keep the food hot
and fresh.
Considering the tough competition in the nearby
area, the prices have been set reasonably low.
The owner Nirmal Singh spends huge sums of money
to put large hoardings and kiosks in the vicinity, to
inform the people about the outlet's location and the
special items on its menu.
The firm is performing various marketing functions
to achieve its marketing objectives.
On the basis of the information given in the above
case identify and explain any three marketing
functions.

Ans. Marketing Functions (any three):

(i) Branding- Branding is the process of giving a name

or sign or a symbol to a product which helps in
identifying and distinguishing it from the competitor’s
products.
½ mark for
(ii) Packaging – Packaging refers to designing and identification
developing the package for the products. It is important +
not only for protection of the products but also serves as 1 ½ mark for
a promotional tool. its
explanation
(iii)Pricing of Product – Price of product refers to the
amount of money customers have to pay to obtain a
product. Generally, lower the price, higher would be
demand for the product and vice versa.

(iv)Promotion – Promotion of products involves =2x3

informing the customers about the firm’s product, its =6 marks
features, etc. and persuading them to purchase these
24
 products. The methods of promotion include
advertising, personal selling, public relations and sales
promotion.

34. Q. The Government of India in its budget for the

financial year of 2021-22 reiterated its support for
Electric Vehicle sector. The Government launched
several schemes and incentives to boost their demand
as well as to motivate manufacturers to invest in the
same. Inspired by these incentives and concerned
about the environmental impact of gas and
diesel-powered engines, Nitin Kothari has set up an
electric car manufacturing unit at Bhilwara. He set a
target of earning Return On Investment of 10% in
the first year itself and forecasted that the demand
for electric cars will increase by 20 million in the
next few years.
The above case highlights the first two steps of the
process of one of the important functions of
management.
(a) Identify the function of management discussed
above.
(b) State the remaining steps required to complete
the above process.

Ans.

(a) Planning 1 mark for

identification
(b) Remaining steps required to complete Planning
process:
(i) Identifying alternative courses of action which may +
be used to achieve the set objectives.
1 mark for
(ii) Evaluating alternative courses of action involves each step
evaluating the positive and negative aspects of each
proposal in the light of the objective to be achieved.

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

decision making and involves selecting the best = 1 +5
possible course of action. = 6 marks
25
(iv) Implementing the plan is the step where other
managerial functions also come into the picture.

(v) Follow-up action involves monitoring whether

plans are being implemented and activities are
performed according to schedule.

(If an examinee has only listed the points, ½ mark for

each point should be awarded.)

26