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Board Paper of Class 12-Commerce 2017 Business Studies All India(SET 2) - 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
    What is meant by 'Capital Structure'?         (1) VIEW SOLUTION

  • Question 2
    Why is 'Aptitude Test' conducted in the process of selection?      (1) VIEW SOLUTION

  • Question 3
    Mansi took her niece, Ridhima, for shopping to 'Mega Stores' to buy her a bag for her birthday. She was delighted when on payment of the bag she got a pencil box along with the bag free of cost.

    Identify the technique of sales promotion used by the company.         (1) VIEW SOLUTION

  • Question 4
    Sika Ltd., a reputed industrial machines manufacturer, needs Rupees twenty crores as additional capital to expand the business. Mr. Amit Joshi, the Chief Executive Officer (CEO) of the company wants to raise funds through equity. The Finance Manager, Mr. Narinder Singh, suggested that the shares may be sold to investing public through intermediaries, as the same will be less expensive.

    Name the method through which the company decided to raise additional capital.  (1) VIEW SOLUTION

  • Question 5
    Differentiate between 'formal' and 'informal' organisation on the basis of 'flow of communication'.    (1) VIEW SOLUTION

  • Question 6
    Give the meaning of 'supervision' as an element of directing.     (1) VIEW SOLUTION

  • Question 7
    Bhagwati Enterprises is a company engaged in the marketing of air-conditioners of a famous brand. The company has a functional structure with four main functions – Purchase, Sale, Finance and Staffing. As the demand for the product grew, the company decided to recruit more employees.

    Identify the concept which will help the Human Resource Manager to find out the number and type of personnel available so that he could decide and recruit the required number of persons for each department.      (1) VIEW SOLUTION

  • Question 8
    Isha Machines was a renowned name for quality sewing machines since 1960. Mr. Suresh, the owner of Isha Machines, was worried as the production had declined during the last three month. He directed the Production Manager to find out the reason. The production Manager ordered the different supervisors to prepare a performance report of the workers working under them.

    Identify the step taken by the Production Manager that is related to one of the functions of management.    (1) VIEW SOLUTION

  • Question 9

    Explain briefly 'Initiative' and 'Espirit de Corps' as principles of general management.    (3)


  • Question 10
    State any three points of importance of planning.     (3) VIEW SOLUTION

  • Question 11
    Explain briefly any three organisational barriers to communication.   (3) VIEW SOLUTION

  • Question 12
    Hemant, Guddu and Toshita were friends from college days and presently they were doing different kinds of business. They regularly meet and discuss their business ideas, and exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques, social concerns etc.

    In one of such meetings, Hemant drew the attention of Guddu and Toshita towards the exploitation of consumers. He told that most of the sellers were exploiting the consumers in various ways and were not paying attention towards the social, ethical and ecological aspects of marketing, whereas he was not doing so. Guddu told that they were under pressure to satisfy the consumers but stated that the consumers would not buy or not buy enough unless they were adequately convinced and motivated for the same.

    Toshita stressed that a company cannot achieve its objectives without satisfying the needs of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind, because business is run by the resources made available by the society. She further stated that she herself was taking into consideration the needs of the customers.

    Identify the various types of thinking that guided Hemant, Guddu and Toshita in the marketing efforts of their business. Also, state one more feature each of the various types of thinking identified that is not given in the above para.   (3) VIEW SOLUTION

  • Question 13
    Ramnath  Ltd. is dealing in import of organic food items in bulk. The company sells the items in smaller quantities in attractive packages. Performance of the company has been up to the expectations in the past. Keeping up with the latest packaging technology, the company decided to upgrade its machinery. For this, the Finance Manager of the company, Mr. Vikrant Dhull, estimated the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis.

    Therefore, Mr. Vikrant Dhull began with the preparation of a sales forecast for the next four years. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources. For the remaining funds he is trying to find out alternative sources.

    Identify the financial concept discussed in the above paragraph. Also, state any two points of importance of the financial concept, so identified.   (3) VIEW SOLUTION

  • Question 14
    Sanket, after completing his entrepreneurship course from U.SA. returned to India and started a coffee shop 'Fioma Coffee' in a famous mall in Mumbai. The speciality of the coffee shop was the special aroma of coffee and wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular, Sanket was keen to find out the reason. He appointed Riya, an MBA from a reputed management institute as a manager to find out the causes of the business not doing well.

    Riya, took feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions which could be eliminated. She fixed a standard time for processing the order.

    She also realised that there were many flavours whose demand was not enough. So, she also decided to discontinue the sale of such flavours. As a result, with in a short period Riya was able to attract the customers.

    Identify and explain any two techniques of scientific management used by Riya to solve the problem.     (4) VIEW SOLUTION

  • Question 15
    Rishitosh Mukerjee has recently joined AMV Ltd, A company manufacturing refrigerators. He found that his department was under-staffed and other departments were not cooperating with his department for smooth functioning of the organisation. Therefore, he ensured that his department has the required number of employees and its cooperation with other departments in improved.

    (a) Identify the level at which Rishitosh Mukerjee was working.

    (b) Also, state three more functions required to be performed by Rishitosh Mukerjee at this level.   (4) VIEW SOLUTION

  • Question 16
    Give the meaning of 'Policy' and 'Budget' as types of plans.   (4) VIEW SOLUTION

  • Question 17
    These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed the most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this, there is another market in which unsecured and short-term debt instruments are actively traded everyday. These markets together help the savers and investors in directing the available funds into their most productive investment opportunity.

    (a) Name the function being performed by the market in the above case.

    (b) Name the market segment other than the capital market segment in which unsecured and short-term debt instruments are traded. Also, give any three points of difference between the two.     (4) VIEW SOLUTION

  • Question 18
    Avdhesh is the Managing Director of Delta Ltd. The company had established a good name for itself and had been doing well. It was known for timely completion of orders. The Production Manager, Ms. Priyanka was efficiently handling the processing of orders and had a team of ten motivated employees working under her. Everything was going on well. Unfortunately, Priyanka met with an accident. Avdhesh knew that in the absence of Priyanka, the company may not be able to meet the deadlines. He also knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of business and goodwill. So, he had a meeting with his employees in which accurate and speedy processing of orders was planned. Everybody agreed to work as team because the behaviour of Avdhesh was positive towards the employees of the organisation. Everyone put in extra time and efforts and the targets were met on time.
    Not only this, Avdhesh visited Priyanka and advised her to take adequate rest.   (4)

    (a) Identify the leadership style of Avdhesh and draw a diagram depicting the style.
    (b) Also, identify any two values highlighted by the behaviour of Avdhesh. VIEW SOLUTION

  • Question 19
    Explain briefly 'Casual Callers' and 'Labour Contractors' as external sources of recruitment. (4) VIEW SOLUTION

  • Question 20
    'RO Youth Club' organised a visit of its members to an Old Age Home to inculcate the habit of social work among them. The visit revealed that the living conditions of the inmates of the Old Age Home were not hygienic. So, the RO Youth Club members decided to clean the premises. During their cleanliness drive, they realised that the Old Age Home also required pest control. But some of the inmates of the Old Age Home were reluctant for it because they believed that the pest control may create health problems for them. RO Youth Club, therefore, decided to provide ethical, safe and odourless pest control. They showed to the inmates of the Old Age Home a pamphlet of the proposed pest 'control product which promised easy, inexpensive and long-lasting pest control. The inmates happily agreed and the pest control was carried out. The effect of the pest control started wearing off after a fortnight. RO Youth Club contacted the pest control company which kept on postponing their visit. After waiting for a month, RO Youth Club field a case in the consumer court.

    The consumer court was satisfied about the genuineness of the complaint and issued necessary directions to the pest control company.

    (a) State any six directions that might have been issued by the court.

    (b) Identify any two values that are being communicated by RO Youth Club to the society.  (5) VIEW SOLUTION

  • Question 21
    Nandrachal Networks and Technologies Ltd. is a leader in technology innovation in U.S.A. creating products and solutions for a connected world. It has a large Research and Development team which invented the first smart watch W-I, which besides showing the time would also monitor few health parameters like heart beat, blood pressure, etc. While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of the fact that licensing requirements had been abolished. The company was also aware that there had been increased level of interaction and interdependence among the various nations of the world and India could be made a base for its international trade. It set up its office in Gujarat with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefitting the customers.

    (a) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain those concepts.

    (b) Also, explain briefly any three impacts of those concepts on Indian business and industry.  (5) VIEW SOLUTION

  • Question 22
    Describe briefly the steps in the process of controlling.  (5) VIEW SOLUTION

  • Question 23
    Medi Instruments Ltd. is a company dealing in the distribution of medical instruments. The company recently imported 15000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones.

    In the meeting, Sanjay, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals personally to explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same. Hitesh, another Zonal Head, added that since lot of money had been spent on the import of the machines, the company was short of funds to pay the additional staff, as suggested by Sanjay.

    Revansh, a newly appointed Zonal Head of South Zone, suggested that since the size of the order was not large, a detailed study of the factors determining the choice of channels of distribution was required before making the right choice.

    (a) Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.

    (b) Also, explain briefly the other considerations to be taken care of in each factor identified in part (a).  (6) VIEW SOLUTION

  • Question 24
    Anoop Gaur started 'Cat's Eye', a company for providing cyber security solutions to businesses. Its objective is to prevent, detect, respond to cyber attacks and protect critical data. He was a hardworking software engineer and an expert in cyber security. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day.

    He was delighted when he was offered a big project by the Ministry of Science and Technology. While working on the project he found that the volume of work made it impractical for him to handle all the work by himself. Therefore, he decided to expand the team. The company maintained a close liaison with an engineering college in the State. During a campus placement, Aarav and Pranshi were appointed to work for the new project.

    He found the new employees capable, enthusiastic and trustworthy. Anoop Gaur was thus, able to focus on the objectives and with the help of Aarav and Pranshi, the project was completed on time. Not only this, Anoop Gaur was also able to extend his area of operations. On the other hand, Aarav and Pranshi also got opportunities to develop and exercise initiative.
    (a) Identify and explain briefly the concept used by Anoop Gaur in the above case which helped him in focussing on the objectives.
    (b) Also, explain any four points of importance of the concept identified in part (a).   (6) VIEW SOLUTION

  • Question 25
    Explain briefly any four factors that affect the fixed capital requirements of a company.  (6) VIEW SOLUTION
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