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Board Paper of Class 12-Commerce 2019 Business Studies Delhi(Set 3) - Solutions

General Instructions:

(i) This question-paper contains five Sections – A, B, C, D and E.

(ii) Section – A contains questions 1 to 8 carrying one mark each. Answer to these questions may be given in one word or a sentence.

(iii) Section – B contains questions 9 to 13 carrying three marks each, answers to these questions may be in 50 to 75 words.

(iv) Section – C contains questions 14 to 19 carrying four marks each. Answers to these questions may be in about 120 words.

(v) Section – D contains questions 20 to 22 carrying five marks each. Answers to these questions may be in about 150 words.

(vi) Section – E contains questions 23 to 25 carrying six marks each. Answer to these questions may be in about 200 words.

(vii) There is no over-all choice in the question paper, however an internal choice has been provided in 3 questions of one mark, 2 questions of three marks 2 questions of four marks, 1 question of five marks and 1 question of six marks. You have to attempt only one of the choices in such questions.

  • Question 1
    Varsha Jain after completing her fashion designing course form Indian Institute of Fashion Technology planned to enter into designer clothing venture. She had to address issues like her target customers, channel of distribution to be used, pricing policy etc. identify the type of plan that Varsha Jain needs to develop to provide direction and scope to her organization in the long run. VIEW SOLUTION

  • Question 2
    State any two 'Developmental Functions' of Securities and Exchange Board of India.


    What is meant by 'Allocative Function' of Financial Markets? VIEW SOLUTION

  • Question 3
    Beena has been using 'Klean', a famous detergent available in the market. On watching numerous advertisements in the television, she decided to try a new brand of detergent. When she went to the near-by store to purchase the same, she saw detergents of other producers making similar claims of whiteness and stain removing abilities. Hence she could not make up her mind as which detergent to purchase.

    Name the objection of advertising being discussed in this case.


  • Question 4
    Give the meaning of 'Physical Distribution' as an element of Marketing Mix.


    What is meant by 'Marketing Management'? VIEW SOLUTION

  • Question 5
    Define 'Workforce Analysis'.


    Define Selection'. VIEW SOLUTION

  • Question 6
    Appliances India Ltd. is engaged in manufacturing and distribution of home appliances since 1987. It has a good name in the market as the company is producing good quality appliances. It has separate departments for manufacturing, finance, sales maintenance services and technical services to achieve specialization.

    Since the areas of operations of the company have increased and customers have become more demanding, the company decided to modify the existing principle of management to meet the changing requirements of the environment.

    State the general principle of management which the company wants to modify to meet the changing requirements. VIEW SOLUTION

  • Question 7
    How does Financial Market facilitate 'Price Discovery' of financial assets? VIEW SOLUTION

  • Question 8
    Biru Nandan, Chairman of Lalit group of companies founded 'Biru University' for undergraduate and postgraduate courses in diverse disciplines. The Information Technology department of the 'Lalit Power Ltd., had few vacancies related to Cyber Security. The Human Resource Department of the Company decided to recruit fresh engineering graduates from 'Biru University' for the same. Identify the type of source of recruitment. VIEW SOLUTION

  • Question 9
    Mita has a successful ice cream business at Bikaner, namely "Smart flavours' ice creams are utterly delicious. She makes ice creams from fresh milk and the same are available in a wide range of flavours and packs. She sets viable business objectives and works with the same in mind in order to ensure that the customers will come back for purchasing.
    Having the first mover advantage, her business was doing well. To earn higher profits, she started cutting costs. This would sometimes lead to delay in delivery and the ice cream was not reaching the market in time. Over a period of time, the demand for her ice cream declined and because of it the competitors entered the market. She lost some of her market share to competitors.
    At the beginning of summer season, she got back to back order for supply of 4,000 ice cream packs of different flavours for special occasions. To ensure that the task was completed and orders delivered in time she hired additional workers. She was, thus able to produce and deliver the ice cream packs but at a high production cost. While completing activities and finishing the given task for achieving goals, Mita realized that she was ignoring one of the important aspects of management.
    Identify the aspects of management that has been ignored by Mita. Also explain the same with the help of an example.  VIEW SOLUTION

  • Question 10
    State 'Job Enrichment' and 'Employee Participation' as non-financial incentives. How do they motivate employees? VIEW SOLUTION

  • Question 11
    Give the meaning of Financial Management. State its main objective.


    State any three points of importance of financial planning. VIEW SOLUTION

  • Question 12
    'Co-ordination is the essence of management.' Explain.
    'Art is concerned with personal application of knowledge.' In the light of this statement compare all the features of management with art and prove that it is an art. VIEW SOLUTION

  • Question 13
    JTM Ltd. launched 'Buddyline', an exercise book and comprehensive stationery brand name comprising of ball pens, gel pens and geometry boxes after identifying the target market and understanding the  needs and wants of the consumers of that market. All their products were of good quality and eco-friendly but expensive. They wanted to distinguish their products from that of their competitors. They spent lot of efforts, time and money in creating the brand name, as they knew that without a brand name, they can only create awareness for the generic products and  can never be sure of the sale of their products. The effort paid off and the demand for the products started growing. The customers liked the brand and became habitual to it. They did not mind paying a higher price. Over a period of time, it became a status symbol to buy 'Buddyline' brand because of its quality. The consumers felt pride in using them.
    (i) Identify the marketing management philosophy followed by JTM Ltd.
    (ii) Explain the advantages of branding to the marketeers highlighted in the above case VIEW SOLUTION

  • Question 14
    Price of a product in influenced by many factors. Explain any four such factors.
    Distinguish between 'Product' and 'Production' concepts of marketing philosophies on the following bases :
    (i) Starting Point ;
    (ii) Man Focus;
    (iii) Means
    (iv) Ends.

  • Question 15
    Mahinder Agro Ltd. started a new venture for distribution of harmful and chemical fertilizers free vegetables. They conducted a survey to find out consumer preferences for such vegetables.
    They found that most of the consumers were concerned about the harmful chemicals being used in growing the vegetables. They found that 90% of the households were searching for its alternatives. The company contacted a group of agriculture experts to lay down the procedure for growing the vegetables by the farmers. They decided to train the farmers in new technology to grow chemical free vegetables according to new innovative methods. The experts also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest.
    Identify and explain the two dimensions of business environment highlighted in the above para. VIEW SOLUTION

  • Question 16
    Mega Ltd. holds an Annual Management Programme every year in the month of March in which the top managerial personnel formulate plans for the next year by analyzing and predicting the future to meet future events effectively.
    As they are responsible for providing direction to the organization, facts are thoroughly checked using scientific calculations. Detailed plans are prepared after discussion with professional experts. Preliminary investigations are also undertaken to find out the viability of the plan. Since it is an intellectual activity requiring intelligent imagination and sound judgement so it is mainly done by the top management. Usually rest of the members just implement the plans. Middle level managers are neither allowed to deviate from the plans nor are they permitted to act on their own.The top management ensures that the expenses incurred in formulating the plans justify the benefits derived from them.
    State any two limitations and any two features of planning discussed above. VIEW SOLUTION

  • Question 17
    Vinber Ltd. set up a manufacturing unit at Bhiwadi in Himachal Pradesh to manufacture electric geysers and supply them to dealers all over the country. Their production target was 500 geysers per week. It was decided by the management that variation in production upto 10 units would be acceptable.
    At the end of the first week, the production was 450 geysers. The next week, production increased to 470 geysers. A week later, production was 460 geysers. On investigation, it was found that fluctuation in production was due to irregular supply of electricity.
    (a) The above para discusses some of the steps in the process of one of the functions of management. Explain these steps.
    (b) Also, state the step(s) that have not been discussed in the above para. VIEW SOLUTION

  • Question 18
    What is meant by 'Decentralisation' ? State any three points that highlight the importance of decentralization in an organization


    Give the meaning of 'Formal Organisation'. State it's any three advantages. VIEW SOLUTION

  • Question 19
    Stock exchange acts as a regulator of the securities market. It creates a continuous market where the securities are bought and sold. It gives investors the chance to disinvest and reinvest. Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues. To ensure that the investing public gets a safe and fair deal in the market, the membership of the stock exchange is well regulated and its dealings are well defined according to the existing legal framework. It also ensures wider share of ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.
    Various functions performed by the Stock Exchange are discussed in the above para. By quoting lines from above para, state any four functions of stock exchange. VIEW SOLUTION

  • Question 20

    Voltage fluctuations have been common and quite high in India. They harm our electrical appliances like televisions, refrigerators and air conditioners, often leaving them in a permanently damaged condition. N-Guard Company decided to manufacture stabilizers for North India where the voltage fluctuation ranges from 220 V to 230 V. Once the demand for North India was taken care of, they decided to launch stabilizers of varying voltages from 90 V – 260 V for meeting the requirements of voltage fluctuations in other regions of India also. Three engineers were appointed for South, West and East regions of India, as the voltage was different in all the three regions. Though all the engineers were appointed to manufacture stabilizers but the product differed from region to region.

    (a) Identify the organisational structure of N-Guard Company.

    (b) State any two advantages and two limitations of the structure identified in the above para. VIEW SOLUTION

  • Question 21

    Nisha Sethi was working as a Human Resource Manager in a famous consultancy firm, KLI Global Services. Her job included preparing job descriptions, recruitment, developing compensation and incentive plans and facilitating employee learning. They had entered into alliances with institutes to ensure continuous learning of their employees. With the jobs becoming more and more complex, KLI Global Services invested large amount of money in making the employees learn the skills necessary to complete the jobs.

    State by giving any five points, how this investment is likely to benefit the organisation? VIEW SOLUTION

  • Question 22
    Explain the following techniques of scientific management:

    (a) Motion Study; and

    (b) Time Study;


    Explain how principles of management help the managers:

    (i) in taking scientific decisions; and

    (ii) in providing the managers with useful insights into real world situations. VIEW SOLUTION

  • Question 23
    'VOICE' is an important consumer organization. It organized workshops in the months of December in Delhi/NCR for consumers. The theme was 'Organic Food – From Farm to Plate', to spread awareness on the importance of organic farming and to encourage consumers to switch from conventional food, that contains chemicals and pesticides to organic food. Expert speakers from farmers' community explained the harmful effects of usage of pesticides in farming and the importance of organic food.

    People were informed that the organization regularly tests samples to detect adulteration like presence of heavy metals or pesticides. The results of the tests are published in their monthly magazine 'Consumer Voice' to make people aware of quality of different products. It also provides aid and legal advice to the consumers in seeking a remedy.

    State the functions performed by the Consumer Voice for the protection and promotion of consumer interest by quoting lines from the above para. VIEW SOLUTION

  • Question 24
    Pratap Singh is the Chief Executive Officer of Nissar Enterprises. It is an automobile parts manufacturing company. The enterprise has a functional structure, in which jobs  of similar nature have been grouped together as Production, Finance, Marketing and Human Resource. Nissar Enterprises has its manufacturing unit at Manesar. The  factory has been plagued with many problems for a long time which was in the knowledge of the Production Manager, Varun Sharma. The workers had internal differences. Time and again, there were misunderstandings between the management  and the workers. Keeping the problems in mind, Varun Sharma appointed, Siyaram Singh who had 14 years of experience of working with the actual work force and passing on instructions of the middle management to the workers.
    Siyaram Singh met Varun Sharma to understand what the management wanted? Thereafter he met the workers and conveyed the ideas of management to them. He also promised the workers to convey their problems to the management. In this way, he cleared the misunderstanding between the management and the workers.
    He also sorted out internal differences and was able to unite the workers within a  month of his joining. His work was acknowledged by management and he was given a certificate of good performance along with 10% increase in salary.
    (i) Siyaram Singh performed some of the functions which are required to be performed at the position he is working at. State any five other functions Siyaram Singh is expected to perform.
    (ii) Name the incentives provided to Siyaram Singh. VIEW SOLUTION

  • Question 25
    'Determining the overall cost of capital and the financial risk of the enterprise depends upon various factors.' Explain any six such factors.


    You are the Finance Manager of a newly established manufacturing company. Explain any six factors that you will consider while determining the fixed capital requirements of the company. VIEW SOLUTION
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