KENDRIYA VIDYALAYA SANGATHAN JAIPUR REGION

SUGGESTIVE MARKING SCHEME

SET B
CLASS XII-BUSINESS STUDIES
SECOND PRE-BOARD

Q. SUGGESTIVE ANSWERS MARKS

NO.

1 A. Management is a continuous process 1

2 B. Restricted Entry 1

3 A. Both A and R are true. 1

4 C. Technological environment 1

5 C. A is true but R is false 1

6 B. Social environment 1

7 C. Number of subordinates under a superior 1

8 C. Both (A) and (B) 1

9 A. Divisional 1

10 D. Dynamic 1

11 A. Decentralization of authority 1

12 C. Both the statements are true. 1

13 D. a-iv, b-i, c -iii, d –ii 1

14 C. Protection of consumer 1

15 C. Protective function 1

16 C. Societal Marketing Concept 1

17 D. Demat Account 1

18 D. Primary packaging 1

19 B. Zero level 1

20 B. Personal Selling 1

21 Ritu is working at the middle level. Her basic functions are (number of functions 3 (1+2)
should be given according to the marks allotted for the question).
(i) Interpreting the policies formed by the top level management and acting as a link
 between top level management and operative management.
(ii) Assigning necessary duties to the employees

22 Workload Analysis is a concept that will assist the Human Resource Manager in 3 (1+2)
determining the real number of people necessary in each department

23 (i)Accomplishing organizational goals 3 (1.5

(ii) Judging accuracy of standards mark
OR each)
Yes, controlling is an indispensable function of management, any two reasons Or
(1+2)

24 First three steps:- 3 (1+1+1)

1. Selection of broker
2. Opening Demat account Or
3. Placing an order
OR 1 mark
Any three each

25 Placement Agencies, Management Consultants and Promotion 4(3+1)

Any one external source apart from above.
Or
OR (1+3)
No, any three reasons

26 Status 4(1mark
Job Security for each)
Employee participation
Job enrichment Or
2 mark for
OR each
Organizational Barriers:
Personal Barriers

27 Any four importance 4 (1 mark

for each)

28 Financing Decision 4 (2 mark

Dividend Decision for each)

29 Any four factors 4 (1 mark

for each)

30 (1) FPO (Fruit Products Order 1955) – It specifies as well as regulates the production 4 (1 mark
& marketing of processed fruits & vegetables, sweetened aerated water, vinegar, and for each)
synthetic syrups.

(2) ISI: On consumer durable goods.

(3) Hallmark: BIS gold jewelry certification scheme.

 (4) Earthen Pitcher: For labelling eco-friendly products.

(5) AGMARK: This is a quality standard for agricultural commodities and similar
stock products.

(6) Wool mark: This symbol denotes 100 percent pure wool.

(i) Explain techniques of Scientific Principles from the following: 6

31.
(a) Science, not rule of thumb: Taylor pioneered the introduction of the method of (2 Marks
scientific inquiry into the domain of management practice. As different managers for each
would follow their indigenous rules of thumb, it is but a statement of the obvious that explanati
all would not be equally effective. Taylor believed that there was only one best on)
method to maximized efficiency. This method can be developed through study and
analysis. The method so developed should substitute „Rule of Thumb‟ throughout
the organization. Scientific method involved investigation of traditional methods
through work-study, unifying the best practices and developing a standard method,
which would be followed throughout the organization.
(b) Harmony not discord: Factory system of production implied that managers
served as a link between the owners and the workers. Since as managers they had
the mandate to „get work done‟ from the workers, it should not be difficult for you to
appreciate that there always existed the possibility of a kind of class-conflict, the
managers versus workers. Taylor recognized that this conflict helped none, the
workers, the managers or the factory owners. He emphasized that there should be
complete harmony between the management and workers. Both should realize that
each one is important. To achieve this state, Taylor called for complete mental
revolution on the part of both management and workers. It means that management
and workers should transform their thinking
(C) Cooperation not individualism:
There should be complete cooperation between the labour and the management
instead of individualism. Competition should be replaced by cooperation. Both should
realise that they need each he This principle is an extension of principle of Harmony
not discord: According to Tailor there should be at almost equal division of work and
responsibility between workers and management. All the day long the management
should work almost side by side with the workers helping, encouraging end smoothing
the way for them.
OR
Explain principles of Fayol from the following:
(a) Authority and Responsibility: According to Fayol, “Authority is the right to give
orders and obtain obedience and responsibility is the corollary of authority. The two
types of authority are official authority, which is the authority to command, and
personal authority which is the authority of the individual manager.” Authority is both
formal and informal. Managers require authority commensurate with the
irresponsibility. There should be a balance between authority and responsibility. An
organization should build safeguards against abuse of managerial power. At the
same time a manager should have necessary authority to carry out his responsibility.
(b) Unity of Command: According to Fayol there should be one and only one boss
for every individual employee. If an employee gets orders from two superiors at the
same time the principle of unity of command is violated. The principle of unity of
 command states that each participant in a formal organization should receive orders
from and be responsible to only one superior. Fayol gave a lot of importance to this
principle. He felt that if this principle is violated “authority is undermined; discipline is
in jeopardy, order disturbed and stability threatened”. The principle resembles
military organization. Dual subordination should be avoided. This is to prevent
confusion regarding tasks to be done.

(c) Esprit De Corps: Management should promote a team spirit of unity & harmony
among employees, according to Fayol. Management should promote teamwork
especially in large organizations because otherwise objectives would be difficult to
realize. It will also result in a loss of coordination. A manager should replace „I‟ with
„We‟ in all his conversations with workers to foster team spirit. This will give rise to a
spirit of mutual trust and belongingness among team members. It will also minimize
the need for using penalties

32. The next three steps are:

(i) Identifying alternative courses of action: Once objectives are set, assumptions 2 Marks
are made. Then the next step would be to act upon them. There may be many ways for each
to act and achieve objectives. All the alternative courses of action should be explana
identified. The course of action which may be taken could be either routine or tion
innovative. An innovative course may be adopted by involving more people and
with
sharing their ideas. If the project is important, then more alternatives should be
generated and thoroughly discussed amongst the members of the organization. heading

(ii) Evaluating alternative courses: The next step is to weigh the pros and cons of
each alternative. Each course will have many variables which have to be weighed
against each other. The positive and negative aspects of each proposal need to be
evaluated in the light of the objective to be achieved. In financial plans, for example,
the risk‐return trade‐off is very common. The riskier the investment, the higher the
returns it is likely to give. To evaluate such proposals detailed calculations of
earnings, earnings per share, interest, taxes, dividends are made and decisions
taken. Accurate forecasts in conditions of certainty/uncertainty then become vital
assumptions for these proposals. Alternatives are evaluated in the light of their
feasibility and consequences.

(iii) Selecting an alternative: This is the real point of decision making. The best
plan has to be adopted and implemented. The ideal plan, of course, would be the
most feasible, profitable and with least negative consequences. Most plans may not
always be subjected to a mathematical analysis. In such cases, subjectivity and the
manager’s experience, judgment and at times, intuition play an important part in
selecting the most viable alternative. Sometimes, a combination of plans may be
selected instead of one best course. The manager will have to apply permutations
and combinations and select the best possible course of action.
O O
R R
The different types of plans are:
(i) Objective 1 Marks
‘One of his objectives was to earn 80% profit on the amount invested in the first year.’ for each
An objective is the end which the management seeks to achieve within a given time explana
 period. -tion
(ii) Policy with
‘It was decided that raw materials like cloth, thread, buttons etc. will be purchased on sub
two months credit.’ Policy is a general guideline which brings uniformity in decision
heading
making for
achievement of predetermined objectives.
(iii) Procedure-He also decided to follow the steps required for marketing the products
through his own outlets.’
OR
‘He appointed Ritesh as a production manager, who decides the exact manner in
which the production activities are to be carried out.’ It consists of sequence of routine
steps on how to carry out activities. It details the exact manner in which any work is to
be performed.
(iv) Budget - ‘Ritesh also prepared a statement showing the requirement of workers in
the
factory throughout the year. ‘
OR
‘Nishant informed Ritesh about his sales target for different products
area wise for the forthcoming quarter.’
A budget is plan which states expected results of a given future period in numerical
terms. It may be expressed in time, money or physical units.
(v) Rule
‘A penalty of ₹200 per day was announced for the workers who found smoking in the
factory premises.’
A rule is a statement that specifies what is to be done or not to be done.

33. Functions of marketing, apart from the ones Choco Ltd is already performing (Any
four):
(i) Gathering and analyzing market information: This is necessary to identify the
needs of the customers and make various decisions for the successful marketing of
the products and services. This is important for making an analysis of the available
opportunities and threats as well as strengths and weaknesses of the organization
and help in deciding what opportunities can best be pursued by it.
6
(ii) Product designing and development: The design of the product contributes
to making the product attractive to the target customers. A good design can improve (1.5
performance of a product and give it a competitive advantage in the market. mark for
each)
(iii) Standardization: Standardization refers to producing goods of predetermined
specifications which help in achieving uniformity and consistency in the output.
(iv) Packaging and labeling: Packaging refers to designing and developing the
package for the products. Labeling refers to designing and developing the label to
be put on the product.
(v) Transportation: Transportation involves physical movement of goods from one
place to another. As generally the users of products particularly consumer products
are wide spread and geographically separated from the place where they are
produced.
(vi) Storage and warehousing: In order to maintain smooth flow of products in
 the market, there is a need for proper storage of the products. Further there is need
for storage of adequate stock of goods to protect against unavoidable delays in
delivery or to meet out contingencies in the demand. Ram Kumar the CEO of
Sabarmati Enterprises in a meeting with the middle management of the company
advised that the personal goals of the people should be reconciled with the
organizational objectives for harmony in the organization. Briefly explain the
objective of management that he was referring to.

34. FUNCTIONAL STRUCTURE- and meaning 6

Advantages of Functional structure: (Any two) (1+1+2+2
(a) It leads to occupational specialization since emphasis is placed on specific )
functions.
(b) It promotes control and coordination within a department because of similarity in
the tasks being performed.
(c) It increases managerial and operational efficiency resulting in increased profit.
(d) It lowers cost as it reduces duplication of effort.
(e) It makes training of employees easier as it focuses on a limited range of skills.
(f) It ensures that different functions get due attention.
Two limitations of Functional structure are: (Any two)
(a) Creation of functional empires where less emphasis is placed on overall objectives
of the enterprise and more on the objectives pursued by a functional head.
(b) Problems in coordination as information has to be exchanged across functionally
differentiated departments.
(c) Inter-departmental conflicts may arise when the interest of two or more
departments are not compatible.
(d) Inflexibility as people with the same skills and knowledge may develop a narrow
perspective