DELHI BOARD

2017
C.B.S.E. CLASS-XII
BUSINESS STUDIES
[Comptt.]
Maximum Marks : 80

-.t111Sf11dJMS:SIN,s'DtlJ1iBoard2017(A1111ual).

9eena; a student of management, likes to relate what she learnt in class to real life
1
0: • She observed many situatio n while watchin g educati onal program mes on televisi on
lflllind her of concepts of Scientific Manag ement. In one such program me, facto~e s
,.....,,"ring parts for product like automobiles, computers and mobile phones were be1ng

Ndlt the technique of Scientific Management that should be adhered to, while manufa cturing
,-fer such products. 1
AnS. Functional Foremanship.
Q. l How do principles of management help managers in fulfillin g social respons ibility?
- 1
Ans. Management principles also guide the manager to perform social responsibilities
. For
--,.It: The principle of 'equity emphasis kindliness and justice in the behaviour of manage rs
IWIIdsworkers.
Q. 3. On the introduction of 'Goods and Services Tax Act, experts in the field of busines
s
tad. malysing and forecasting its impact on various sectors and industr ies. Vivek, an
IIIWished businessman, attended a few seminars and conferences organized by such experts
ltflailiari.ze himself with this information. He wanted to use these forecasts to reduce the
-.wnty in making decisions for the future in his business.
Name the step in the plannin g process that is being discussed in the above paragraph. 1
Ana. Developing premises.
Q. l Give the meaning of 'Democratic style of Leadership.
I

Aas. In a democratic leadership style, a democratic leader will develo f

::..decisions in consultation with hissub ordinates. He will encour ~
. making. This kind of leader ship style is more c ~
~ that people perform best if they have set theit ow n~
J '· Avik is the finance manapr of Mars Ltct In••~
.::_However, Avik thlnb that it II better to declare
.~PGte ntiaJ of dte ~la the COIIW\8,..
:·•cbo i~of divicl end.. .._.... ..
St.b,Uty tamla p
of
(~~i~~~l§
 274 SATISH : C.B.S.E. SERIES (XII) BUS INE SS
STU DIE S
Q. 6. How doc s ' lt?vc l of com peti tion ' affe ct
the wor king capi tal requ irem ent of an
organi1.1lion? St.1h•.
Ans. 1lig lwr ll' Vl'I oi com peti tive ness may nece 1
ssita te high er stock~ of finis hed good s to meet
uq; l't: t ortl<.' rs fn.,m cus lotn l' t's. This incr ease s the
wor king ca pi~a J requ irem ent. Com peti tion may
a l~n l(,rc t' llll' fir m Lt, <.' ~te nd libNa l cre dit term
s disc ussed earh er.
Q. 7. \Vh.1t is 1neant by ,'I 'Commercial Paper'?
Ans . Com m0n:inl pape r is a s ho rt-te rm unse cure 1
d prom isso ry note, nego tiab le and transferable
by e1'\dors1.' lllt.'n t .·m d d elive ry with a fi xed matu rity
pe riod . It is issu ed by larg e and cred it worthy
l.'1J mp.1 ni0s tt, r,1ise shor t-ter m fund
s a l lowe r rates of inte rest than mar ket rates . It
ma turity pc-ri od. o f 15 d ays to one yea r. usua lly has a
Q. 8. Rav i, the Marketing Manager of Weaver Garmen
ts Ltd. doe s not all? w the salesmen
worl i11.g und er him to free ly express their fran
k opin ion and feel ings i:egard1ng wor k related
m.1tters.
Iden tify the organizational barrier to communicat
ion that has been created by Ravi. 1
Ans. Stat us : Sta tus o f s uper ior may crea te psyc
ho log ical dist ance betw een him and his
sub(,rdin a tes. A sta tus cons ciou s manager also
may not a llow his subo rdin ates to expr ess their
fee lin gs free ly.
Q. 9. Pinn acle Ltd. deals in the sale of stationer
y and offic e furniture. The y source the
fini shed products from reputed brands who give
them four to six mon ths credit.
Seei ng the dem and for electronic items, they are
also plan ning to market thes e items by
ope ning outl ets throughout India. For this, they
hav e deci ded to join han ds with a Japanese
elec tron ic goo ds manufacturer.
Iden tify and state any two factors that would affect
fixed capital requirement of Pinnacle Ltd.
as disc usse d above.
Ans . Two factors that wou ld affect the fixed capital 3
requirements are:
- Level of Collaboration: At times, certa in business
orga nisa tion s Sha re each othe rs facilities.
'For t.•xam ple; a bank may use anot her' s ATM
or som e of them may join tly establish a
particular facility. This is feasible if the scale of
ope ra tion s of each one of them is not
sufficient to make full use of the facility. Such colla
bora tion redu ces the leve l of investment
in fixed assets for each one of the part icip atin g orga
nisa tion s.
- Nat ure of Bus ines s: The typ~ of busi ness has a bear
ing upo n the fixed capi tal requirements.
For example; a trad ing conc ern need s lowe
r inve stme nt in fixe d asse ts com pare d with a
man ufac turin g orga nisa tion; sinc e it does not requ
ire to purc hase plan t and machinery
etc;
Q. 10. Stat e any three mer its of inte rnal sour ces
of recr uitm ent.
Ans . Three mer its of internal recr uitm ent are:
(,) Employees are mot ivat ed to imp rove their perf orm
ance .
may lead to a chain 9{ prom otio n at lowe r leve ls in the A prom otio n at a hi
orga
employees to jmprove thei r perf orm ance thro ugh lear ning nisa tion . This mo
and prac tice.
, · Internal r~l tme qta lso sim_plifies the process of sele
ction and plac eme n
i''l&dY. V,9f.'kS~ m the ente rpri se can be eva luat ed
mor e
y. . .
· the _employees to prep are them for high
· rnsa tJon do not need indu ctio n train i
 blLHI-.RD: 2017 (COMPTT.J 275

~r- lil)tnlduct design, Smta • lthet 10 ltllltller own business

..c,WJ:tty and cmrunuolcatioi1 requirement, of persons with

wanted to focu.s on 1upplying highqu.lity.,..,.... affordilble

~ on (U.S~P.) of the products would b, -,ea,itivHy to the
tly abJed people. ·
differently abled persons in her fadot)' and sale, of'ftces acro~s the
of. . . ptovide,the base forinterpretinghetstrategy. This aJso defines
which the company may recruit the persmtS-
~ the exact manner and the cbronOlogical order of how the
_,..a,,licants will be done.
it diacussing about one of the functions of managemen t. This
ldeqtify and explain the types Sarita is discussing in the above lines.
3

ef planning d iscussed in above lines is planning.

1e, aal types of plans. These are:
~A single-use plan is developed for a one-time event or p roject. Such a course
to be repeated in future, i.e., they are for non-recurring situations.The duration
•!Ind upon the type of the project. It may span a week or a month. A project may
on.e day, such as, organising an event or a seminar or conference. These p la!15
j,t,jitraJIWlleB and projects.
~ g plan isused for activities that occur regular Iy over a period of tlme.
!flat
internal operations of an organisation run smoothly. Such a plan
iopiutme decision-making. It is usually developed on ce bu t is modified
iu,iineSSneedsasrequired. Standjng plans includes policies, procedun?s

wing methods of training :

3
entice,hip training put the trainee u nd er rhe gu idance
~ e a higher level of sk il l. Peopk seeking to enter
, e lectrician ~ o r iron-\, l>r l--Pr-; .: ue l., ttcn rt.~uired to
enti ces c1 re tra inees who spt.~n d ~1 p1~s(:rt£'N amo
r t1 .i i11cr. A un itorm pt'"rwd 1Jt tr~tning 1s ()it~
.ir l' pl.1ef' d log l' thc1.
ntt• ot t, ,,in in~ 111 wh· ..
ll'S 1.,lll \' lll l , ,,
276 SATISH : G.B.S.E. SEHIES (XII) BUSINESS STUDIES

effort in dCYtdoping t"Co-tr--icndl) , l..h,--mir;\1-trne t4nd hc,1Hhy ,1ltcmative for a variety of Product of
daily u:,t\ like h)cthp.a:;h?. bic:l·ni1 '- , mw ..~k~, c.oaps. sh.~mpoos at1d detergents etc. Their business
micnf.1t,on <iitk~ (rom uunr•·littHs 1\lw ,Ht' c:hu11 s1~hft,J and Aerve only consumer's need
l n~tr<ld Sindhu ,\) mn~d Url. l'.'\m .. idcl''- f.,~t~r issues ot long term social welfare, paying attenti;
,t o ~~d al. \.~hil'Sl.1 an,1 ,·,·nh1gkal ,1spcrl5 l"tf markd ing.
(d M~ntff, and r~"l,dn the nurki·ting mttn~gcnicnt philosophy adopted by Sindhu Ayurvect
Hd.
(nl St.:stt? ~nJ h,~ ,~alue~ that art· hdng promoted by the company. 4
An.,. (a) The So<ictat Market in~ CPnft•pt ;The s0cirtc.1l m,uketing concept holds that the tMk
o: .ml\ il"llffahi~-- tron ~~ to hien.til'\' th~ th.'\'ds and w.,nh of the target market and deliver the desired
~bc::tactm, man i:-,f'fei..:'1iY,~ a1lcl ~thdPnt m.mncr ,o th.,t the llmg-term well-being of the consumers
and th, so..,e'h 1, taken'Glrt vt. Hm<;: tht:! SlKictal m;ul,.,t.,ting conrept is the extension of the mar ·
-.io •~:P~ .assupp1en1en{E'd b· the \'X.)HCl'm tor the lcmg-terrn welfare of the society. Apart from
rnSto..-ner sab~famon tl pa,~ attention to the !-<Kial. t"thical and ecological aspects of mark
Th~€ art laise ~mnl~r of ':·ttrh i~sue~ th,,tnecd to be attended.
~ ,·~iue, bein,g promoh·d are:
- Social \.\'ielfar~.
- IEn\ ron.1en't P-4-iesen:atmn.
Q. 15. ~tate ~,y four featu~s of informal organization.
Ans. See Q :.11 ~-l# Outside Dt--lhi Board 2013.
Q~ 16. E>.,-p\ain any four poinb of importance of controlling.
An, . ..,et Q 22 Set-nt. Oelh, Board 2017.
O. !ii.. ?Vh. Mur.h} is the Human Resource Manager of Jai Hind Hospital in
zppnint nurse£ for the ho:,pital. Since patients in the hospital are of differe
ifind :out the candidates' maturity and emotions in dealing with the patie
1«-<™ the candidate"~· ability to make decisions.
f~1ain tv.1:0 ryp~=> of rests that !\1r. Murthy can use to meet his req ·
Ans. .Persona.Ii:)' Tests : Ber:,onality tests provide clues to a person'
m nmit~ a.11d ,·ahJt" S} 5tt'Dl ~:c. These tesb probe the overall personali
todeSJgn an:d implement.
Tradelesi :These tests me.asu1e the exi5ting skills of the indivi
t:n~if:.d 0 <= c.nd proficiency in the area of professions or technica
Q. 16. C".adafi~ the Cihi ef Executive Officer of a reputed com
£kill dev..-lo;pment progiammes and a sound promotion policy
Jomuth _te and Lretain the best talent in the company, shed
ndudr gi-e.ter , mety of l-t'Oik content. identify and exp
~ Jwmoth:.ate the employees of her company.
.Aos. U ui:eer Ad·, ar1oement Opporturuty : l~very
k-wJ nm q1garmiauon Managen, shou ld provid<. u 1

...-.U..-d p 1 01note-d v the highec ie\1 ~l Job-;. Appr

~ p,omot rm tpoh( }' will help ,.. rnployees to act1·
lnd_,~g1-as ;c ·1,plo)et: t-utn:J-ubit imp,ov,·d p
. ~ , . , . ~ I 1cnvowenne,11 • I u'fJlO\'!t <'fnu.-
;ubordlt,ltM l,rtpov. r:uneni m,;1kc people
~ f ' d . _, to it Pu~ of r;.J. Jlis ~md
 OEUIIIOAAD: 2'317~., 27i

JI ,Z:~~ of tlw..,.taeaMfuJ nwu~olhff coapairaw. ~ u.l 9-r-.alls

-~-ehl.....,lingdwlengjng~at. WOJk. ..,,
. . . . .~ppinedby~duringhffttu.dentday,.ataW WMWIJ . . . . . . . . Cr C
herobta¥ation a n d ~ ovad,ey:anisappld ~ n., a 1111~ ,1·■1 I
.....QNlle...._.t.., of Ille .- ealtinof a grt'ftll sita•atior. SM oftm ~bookt am!ftllMn&I 7
Ill* ?f tnanap1ne11t to kttp htt know'ledge updatrcl
.Nf•d of the nature o f ~ is being higblipll'd ia Oat ais••t .tascr ,..6 J.

aaythnefaturnoftheupe<tideotifiedinpa rttil. ~
Maliagenent as a profesMOrL
••fie· XI has the following characteristics :
l&detiaedbecly of knowledge:
tl'c•Jst_ons are based on a well•defined bodJ of k ~1edge that an !'.~ :: ~:-:;::: : f:i.

IJlllicled entry: 1he entry to a profession is restrided through a n ~ Cj .-...:a::..~_,

fd.uational degree. for aampl.e; to become a charta"ed aax,nnlanl m India a m:-~~2

a epedfied examination conductedby the Institute of (bartered A,munlac'.:5 mrr - ~
IJltlllllonal association : All professions are affiliated to a p r o f ~ ~ • - · :b
_._.....,~ grants certificate of practice and formulates and enforces a code of cond.i::z- To - p
ltMlce in India lawyers have to become members of the Bar Council which ~ ~ · S'S i: .:
ctivities.. ..
J

••m uy five points of importance of BusineH mrin,nmeal.

••re of basines& envbonnwnt are:
the firnt to identify opportunities and getting the 6B mover arl, ;a;-:age-_
the firm to identify threats and early warning signals.
.. tapping~· resowas-
.. CID.Ping with rapid c:han~
••" f t" - &A -
-g_,... • 1t ~~ disP-~~
al after' leelll~
0, 0 , '?U '? t&, i' chc?rm:fs
T • "' •

wllea it••
llliiMIIIIIIJ.1flNlll:l*lled• iaa canU,oaal i,.. ldennty the clifferen: ic\ e.i.s c t pa~ gL~
pmdtattt' by Shyam. Also sra:::c t:',c tunct1on ot
~

• : - ~=--• wmc: ca...~5

ttiu• aedia te contame: T
~'1c prurary
1eusettieproduct (e.g ?,as~c ?-K~~, fors...~);\Hl
4111belifeoftbeproduG: \t: .g., A ..---'- "'"'i:m e••~ :ube

_......,.. • additJonal layers of protection

o1c,inlaleR1.:0ftlll!linamdboald
~ ..,.,...df Ile• 19Ut retain lhtp;pdlf;•• llilat
8111
27 8 SATISH : C.B.S.E. SERIES (XII)
BU SIN ES S ST UD IES
(it) Pl' odu ct Protection: P.1rk,1gin
g pro l0c lR the con ten ts of a pr~ du~
k,,k,1g1..', pilf t"ra gc, d,m , ,,gl', clim atic t from_spoilag~, breakage,
t~H~ct, etc. Thi s kin d of pro tec tio n
di s trib uti on c'lnd lra. n"'p orta tion 1s req uir ed du nn g storing,
of thl~ pro dll C'l.
Q. 22. Ap a.u Found,1tion ii, a No n
Go vernment Or gan ~at_ion (NG O)
liv es of chi ldr en wit h medical n~e wo r~i ng to improve the
ds the ho me les s and v1ct1ms of nat
don.1tio-ns in c;1sh, the y col kct dry r;t ura l disaster. Apart from
,on , old cJothes, sh~ es, toy s, boo.ks
don ors . At Ap adr fou nd ati on• ~ off an d me dic ine s from
ice in Bhopal, the material col lec ted
a,,d pu t in sht>lves ._u,d box es tha 1s seg reg ate d, classified
t are lab elle d systematically. There
the s~ ile ms ._n,d vol un tee rs pu t eve ryt is a spe cif ic pla ce for each of
hin g the ir res pec tiv e pla ces .
Th ~ vol u nteer wo rk is div ide d int
o spe cif ic jobs lik e fun d rai sin g, fie
updail'S ~1nd so on . Ea.ch vol un tee ld vis its, soc ial media
r is part of a particular team, dep end
.ind training. ~ac h vol un tee r bec om ing on the ir competency
es spe cia lize d in their res pec tiv e fie
uti liza tio n of hu ma n effort. ld, lea din g to efficient
li) Ide nti fy and exp lai n tw o pri
nci ple s of ma nag em ent ado pte d by
tis) Sta te tw o val ues that Ap Apaar Fo un dat ion .
aar Foundation is dis pla yin g and
the ir wo rk. pro mo tin g in soc iet y through
An s. (i) Pri nci ple s of ma nag em ent ' 5
ado pte d by Apar fou nd ati on are :
- Div isio n of Wo rk: \!\Tork is div ide . .
d into sm all tasks/jobs. A tra ine d spe
is r~q uir ed to per for m eac h job. cia list wh o is competent
Th us, div isio n of wo rk lea ds to
Fay ol," The in tc11 t of division of work spe cia lisa tio n. Ac cor din g to
is to produce more and better work for.
~nC'st t:{ficic11t zi,ay to use human effort." the same effort. Specialisation is the
ln bus ine ss wo rk can be per for me
div ide d int o spe cia lised tasks; eac d mo re eff icie ntly if it is
h per for me d by a spe cia list or tra ine
eff ide nt and eff ect ive out put . Th d em plo yee . Th is res ults in
us, in a com pan y we hav e sep ara
ma rke tin g, pro duc tio n, hu ma n res te dep art me nts for finance,
our ce etc.
Order: Ac cor din g to Fayol, "People and
materials must bein suitable placesat apprap
e_(ficL.'1zcy." Th e pri nci ple of ord er sta riatetime for maximum
tes tha t 'A place for everything (even;o
it:.:Jht.'1!hi8) place'. Ess ent iall y it me ne)and everything (everyone)·
ans ord erl ine ss. If the re is afi:xed
pre sen t the re, the n the re wil l be no pla ce for eve ryt hin g an d·
hin dra nce in the act ivit ies of bus ine
inc rea sed pro duc tiv ity and efficie ss/ fac tor y. Th is w1ll l
ncy.
{ii) Va lue s dis pla yed are : 1. Be
tter me nt of society. 2. Co nce rn for
Q. 23. Dif fer ent iat e bet we en 'fu nct chi ldr en and vol un
ion al' and 'div isio nal ' str uct ure of
basis. org ani zat ion
Ans.

Basis Fu nct ion al Str uct ure

Fo.rmation Fo rm ati on is bas ed on
Fo rm ati on is
functions.
lin es and i
Specialisation fun cti on
Functional sp~ cia lisa tion .
Pro dtr
·Re~ponsibJlity . · · . Difficult to fix on
·a dep art me nt.
 DELHI BOARD : 2017 (COMPTT.) %79

Functi()ns are not duplkatoo hence, Duplication of resources in

erorlOmkal various department!>,~:,
costy.
·on PlfflC:\Jlt for a multi•product . F.asy, because all functions are
comp&ny ate intt-grated in one related to a particular product
departemenL

$Ille any two reliefs that the Consumer Court can grant to in cas.e- of
_,,'abds in each of the following situations:
consu.mtt5

~,_- was charged mo~ than the printed maximum retail price (MIU') for a bott! e of
llllii6'i~.-.w-a car with a defective engine.
. . . , suffered while using newly bought defective electric heater. 6
'{,) To refund the price p.aid for the product.
~ To pay a reasonable amount of compensation fur loss suffered by the consumer_
(ti) lo remove the defect in goods or deficiency in service.

-41) {Ji) To replace the defective product with a new oner free from anyctefect.
1. To refund the price paid for theproduct, or the charges paid for the sen'ice.
•) To pay a reasonable amount of compensation for any loss or injur:: suffered by the
consumer due to th€' negligence of the .opposite party.
5-dlla isan enterprising business woman who has been running a poultry farm for the
IQ!llfllL She bil6 saved f Four lakhs her business. She shared with he-r family he.r desire to
•••••money to expand her business. Her family members gave her different suggestions
,__,.._lle'W- machinery to replace the existing one, acquiring altogether new e<i uJpments
IKlmology opening a new branch of the poultry farm in another city and so on.
these decisions are crucial for her business, involve huge amount of money and are
• • except at a huge cost, Sudha wants to analyse all aspects of the decisions, be-fore
...... fiaal decision.
• and explain the financial decision to be taken by Sud.ha.
a..aplain bdeflythe fadms that will affect this decision.
(illnvestment Decision (Capital budgeting decisions).
affeding inYestmeot decisions are :
._l.lllOll1'5Qf tile project: When a company t ~ an investment decision in,-oh~ing huge
~ to pneRle some cashflows over a ~ of ~e. These cashfloh·s are m the
•.,..;of cam receipts and payments over~~ of an ~vestment. _The ~mount oi ti~~
. _ . . be-carefu)tJ analysed before~~ a capttal _budgenn? aecisian.
.._., MUJB ..ibe most important rntenon IS the rate ot return or the proiect. Thc-se
• 1-.ed. Gii &e exped«I returns from~ P ~ an~ the assessmenc of r- 3 "
•....-,-.e~twopJojeds A and B (with the same risk 1n1.·olved.1 ·,\'ith .1 :-ate of
. Q ~ l d l p e E ~ . ~ w a w d t . l l a n n stance. pro;~-: B 1inH
-..k1p - . - ar •

.. ~~•-!·~~.i~!lflliliiil
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