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Board Paper of Class 12-Commerce 2016 Business Studies All India(SET 1) - Solutions

General Instructions:
(i) Answer to questions carrying 1 mark may be from one word to one sentence.
(ii) Answer to questions carrying 3 marks may be from 50 to 75 words.
(iii) Answer to questions carrying 4-5 marks may be about 150 words.
(iv) Answer to questions carrying 6 marks may be about 200 words.
(v) Attempt all parts of a question together.
(vi) Question Nos. 1 to 8 are very short-answer questions carrying 1 mark each.
(vii) Question Nos. 9 to 13 carry 3 marks each.
(viii) Question Nos. 14 to 19 carry 4 marks each.
(ix) Question Nos. 20 to 22 carry 5 marks each.
(x) Question Nos. 23 to 25 carry 6 marks each.

  • Question 1
    'Is Management concerned only with doing the right task, completing activities and achieving goals without taking into consideration the cost benefit?' Give reason in support of your answer. VIEW SOLUTION

  • Question 2
    Give the meaning of 'organising as a process'. VIEW SOLUTION

  • Question 3
    Name the type of organisational structure which promotes flexibility and initiative. VIEW SOLUTION

  • Question 4
    State the role of 'route clerk' in functional foremanship. VIEW SOLUTION

  • Question 5
    Name and state the aspect of financial management that enables to foresee the fund requirements both in terms of 'the quantum' and 'the  timings'. VIEW SOLUTION

  • Question 6
    Rizul Bhattacharya after leaving his job wanted to start a Private Limited Company with his son. His son was keen that the company may start manufacturing of Mobile-phones with some unique features. Rizul Bhattacharya felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investment would be reuired regularly in this business. Therefore he convinced his son to start a furniture business.

    Identify the factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile phones. VIEW SOLUTION

  • Question 7
    Name the function of marketing which is concerned with the cost and location of target market. VIEW SOLUTION

  • Question 8
    Suman bought a box of cheese of a reputed brand from a local shopkeeper. On opening the box she found a piece of stone in the cheese. She reported the matter to the shopkeeper who forwarded her complaint to the concerned company. Within a week the representative of the company visited Suman's residence with an apology and as a replacement offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her.

    State the consumer right which Suman exercised. VIEW SOLUTION

  • Question 9
    Define 'Planning'. Explain the first two steps in the process of  Planning. VIEW SOLUTION

  • Question 10
    Mr. Fernandes is the owner of Unibie Enterprises, carrying on the business of manufacturing electrical appliances. There is a lot of discontentment in the organisation and targets are not being met. He asked his son, Michel, who has recently completed his MBA, to find out the reason.

    Michel found that all decision making of the enterprise were in the hands of his father. Moreover, his father did not have confidence in the competency of the empolyees. Thus the employees were not happy.

    (a) Identify any two communication barriers because of which 'Unibie Enterprise' was not able to achieve its target.
    (b) State one more barrier each of the types identified in part (a) above. VIEW SOLUTION

  • Question 11
    Atul-The Assistant Manager, Vikas-The Marketing Head and Leena. The Human Resource Manager of 'Montac Enterprises Ltd.' decided to leave the company.

    The Chief Executive officer of the company called the Human Recource Manager. Leena and requiested her to fill up the vacancies before leaving the organisation. Leena suggested that her subordinate Miss Rama Wadhwa is very competent and trust worthy, if she could be moved up in the hierarchy, she would do the needful. The Chief Executive Officer agreed for the same. Miss Rama Wadhwa contacted 'Smith Recruiters' who advertised for the post of marketing head for 'Montac Enterprises Ltd'. They were able to recruit a suitable candidate for the company. Atul's vanancy was filled up by screening the database of unsolicited applications lying the the office.

    (a) Name the internal/external sources of recruitment used by 'Montac Enterprises Ltd'. to fill up the above state vacancies.
    (b) Also state any one merit of each of the above identified source of recruitment. VIEW SOLUTION

  • Question 12
    Mr. Vikas Mehra was the Chairman of 'IBM Bank'. The Bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce the taking over of 'UK Bank'. Mr. Vikas Mehra knew that the share price of 'IBM Bank' would rise on this announcement. Being a part of the Bank, he was not allowed to buy shares of the bank. He called one of his rich friends Mukand and asked him to invest Rs 4 crores in shares of his bank promising him the capital gains.
    As expected after the announcement, the share prices went up by 50% and the market price of Mukand's shares was now Rs 6 crores. Mukand earned a profit of Rs 2 crores. He gave Rs 1 crore to Vikas Mehra and kept Rs 1 crore with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Vikas Mehra.
    Quoting the lines from the above para identify and state any two functions performed by SEBI in the above case. VIEW SOLUTION

  • Question 13
    What is meant by a 'consumer' as per the provisions of Consumer Protection Act, 1986? VIEW SOLUTION

  • Question 14
    What is meant by 'Management'? Explain its any three features that establish it as an Art. VIEW SOLUTION

  • Question 15
    With change in the consumption habits of people, Neelesh, who was running, a sweets shop shifted to chocolate business. On the eve of Diwali he offered chocolates in attractive packages at reasonable prices. He anticipated huge demand and created a website for taking orders online. He got lot of orders online and earned huge profit by selling chocolates.
    Identify and explain the dimensions of business environment discussed in the above case. VIEW SOLUTION

  • Question 16
    'My Car Ltd.' decided to set-up its new car manufacturing factory in the backward area of West Bengal where very less job opportunities were available. People of that area welcomed this effort of 'My Car Ltd.' The company also decided to provide facilities like school, hospital, market etc. in the factory premises so that the people are attracted to join the factory as workers.
    'My Car Ltd.' started earning huge profit. Another competeting company asked its production manager 'Arvind' to investigate the reasons of earning huge profits by 'My Car Ltd.'
    Arvind found that in both the companies there was systematic co-ordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his organisation communication took place only through the scalar chain, where as 'My Car Ltd.' was allowing flow of communication in all the directions as per the requirement which lead to faster spread of information as well as quick feed-back.

    (a) Identify the type of organisation which permits the flow of communication in all the directions in 'My Car Ltd.'.

    (b) Also state an advantage of the type of organisation identified in part (a) above.

    (c) State any two values which 'My Car Ltd.' wants to communicate to the society. VIEW SOLUTION

  • Question 17
    ‘A.S. Environs Ltd.’ is dealing in Environment-Consultancy. To get the business, the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the team leader used to travel by air whereas his team travelled by road/train. It was not only time consuming but also at times forced the female team members to travel alone.

    As a result the subordinates were not acting in a desired manner to achieve organisational goals. The CEO of the company came to know about it. He called the team leader, discussed the matter with him and decided to change the travel policy of the company. It was decided that in future all the members including the leader would travel together and usefully utilise the travelling time in discussion about the presentation to be given to the clients. This made a positive impact and every member of the team started acting in a manner as desired by the team leader. VIEW SOLUTION

  • Question 18
    A company was marketing 'Juicers' which were very popular due to their quality and after-sale-services procided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits the company ignored the after sales, services. As a result its relations with the cutomers got spoiled and the image of the company in the public was damaged. Top management became concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring the after sales services was its reason. Therefore the company took all possible measures to protect and promote its favourable image. As a result the goodwill of the company improved in the society.

    (a) Name and state the communication tool used by the marketer in the above case to improve its image.
    (b) Also explain role of the tool as identified in Part (a). VIEW SOLUTION

  • Question 19
    State the functions performed by financial market. VIEW SOLUTION

  • Question 20
    Two years ago Mayank obtained degree in food technology. For some time he worked in a company manufacturing Bread and Biscuits. He was not happy in the company and decided to have his own Bread and Biscuits manufacturing unit. For this he decided the objectives and the targets and formulated action plan to achieve the same.
    One of his objective was to earn 50% profit on the amount invested in the first year. It was decided that raw materials like flour, sugar, salt etc. will be purchased on two months credit. He also decided to follow the steps required for marketing the products through his own outlets. He appointed Harsh as a Production-Manager who decides the exact manner in which the production activities are to be carried out. Harsh also prepared a statement showing the requirement of workers in the factory throughout the year. Mayank informed Harsh about his sales target for different products, areawise for the forth coming quarter. While working on the production table a penalty of Rs 150 per day was announced for not wearing the helmet, gloves and apron by the workers.
    Quoting lines from the above para identify and explain the different types of plans discussed. VIEW SOLUTION

  • Question 21
    Prateek is working in a multi-national company in Noida. He was running temperature for the last many days. When his blood was tested, he was found positive for malaria. He was admitted in the hospital and a blood transfusion was advised by the doctors as his condition was very serious. One of his collegues sent a text message to his superior 'Mr. B. Chatterjee'.  Mr. B. Chatterjee, immediately sent a text message to the employees of the organisation requesting them to donate blood for Prateek. When the General Manager came to know about it he ordered for fumigation in the company premises and for cleaning the surroundings.
    (a) From the above para quote lines that indicate formal and informal communication.
    (b) State any two features of informal communication.
    (c) Identify any two values that are being communicated to the society in the above case. VIEW SOLUTION

  • Question 22
    State the steps in the controlling process. VIEW SOLUTION

  • Question 23
    Describe any four characteristics of 'co-ordination'. VIEW SOLUTION

  • Question 24
    Kay Ltd. is a company manufacturing textiles. It has a share capital of Rs 60 lakhs. In the previous year its earning per share was Rs 0.50. For diversification, the company requires additional capital of Rs 40 lakhs. The company raised funds by issuing 10% Debentures for the same. During the year the company earned profit of Rs 8 lakhs on capital employed. It paid tax @ 40%.

    (a) State whether the shareholders gained or lost, in respect of earning per share on diversification. Show you calculations clearly.

    (b) Also, state any three factors that favour the issue of debentures by the company as part of its capital structure. VIEW SOLUTION

  • Question 25
    Vasvi purchased a bottle of pickle from the local grocery shop. The information provided on the bottle was not clear. She fell sick on consuming it. She filed a case in the District forum under Consumer Protection Act and got the relief.

    (a) Identify the important aspect neglected by the marketer in the above case.

    (b) Explain briefly the functions of the aspect identified in (a) above. VIEW SOLUTION
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