MARKING SCHEME

First Term Examination 2023-24

Business Studies (054)
Class XII

1. Kashish is running a takeaway restaurant in Delhi under the name ‘Eat Out’. Keeping
in view, the pandemic situation she has made certain changes in the process of [1]
packaging and delivery of orders. Identify the characteristic of management which is
highlighted in the above paragraph:

(a) Management is a goal-oriented process.

(b) Management is a dynamic function .
(c) Management is multidimensional.
(d) Management is an intangible force.
Ans (b) Management is dynamic function .

2. Assertion (A): Fayol’s and Taylor’s contribution in the field of management is

complementary to each other. [1]
Reason (R): Fayol focused on improving the efficiency of workers in the factory
system and Taylor focused on improving managerial efficiency.
Choose the correct option:
(a) Both the Assertion (A) and Reason (R) are correct, and Reason (R) is the
correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is correct, but Reason (R) is not correct.
(d) Both Assertion (A) and Reason (R) are not correct.
Ans (c) Assertion (A) is correct, but Reason (R) is not correct.

3. Match the following by choosing the correct option.

[1]
Column A Column B
(i) To achieve end result on time (a) Management
(ii) To conduct cost benefit (b) Coordination
(iii) Intangible force (c) Effectiveness
(iv) Synchronize the various activities of an (d) Efficiency
organisation

(a) (i)-(a); (ii)-(b); (iii)-(c); (iv)-(d)

(b) (i)-(b); (ii)-(a); (iii)-(d); (iv)-(c)
(c) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)
(d) (i)-(d); (ii)-(c); (iii)-(b); (iv)-(a)
Ans (c) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)

4. ‘Manoranjan’ is a leading telecommunications company in India. On taking the

annual subscription of a DTH connection the company is charging only for 11 months [1]
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 and offering one-month free subscription. Identify the component of promotion mix
adopted by the company to boost its sales.
(a) Advertising
(b) Sales Promotion
(c) Public Relation
(d) Personal Selling
Ans (b) Sales Promotion

5. ___________________ refer to the positive external trends or changes that will help [1]
a firm to improve its performance.
Ans Opportunities

6. __________________ ensures that goods belong to a particular quality and helps in

realizing higher prices for high quality output. [1]
(a) Product designing
(b) Standardisation
(c) Promotion
(d) Grading
Ans (d) Grading

7. It is difficult to know the extent of relative impact of various dimensions of business

environment. Which feature of business environment is highlighted in the given [1]
sentence?
(a) Inter-relatedness
(b) Relativity
(c) Uncertainty
(d) Complexity
Ans (d) Complexity

8. In order to promote the habit of health and hygiene among weaker sections of society,
Abhyas Limited has launched low-cost packs of hand wash. Identify the type of [1]
marketing philosophy being adopted by the company.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept
Ans (b) Production Concept

9. As per F.W.Taylor, the concept of complete mental revolution is associated with the [1]
principle of ________________________________.
Ans Harmony not discord

10. She / he is responsible for timely and accurate completion of the job. Whose work is [1]
described by this sentence under functional foremanship?
(a) Speed Boss
(b) Gang Boss

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 (c) Instruction Card Clerk
(d) Route clerk

Ans (a) Speed Boss

10. Identify the consumer right highlighted in the below picture:

[1]

(a) Right to be heard

(b) Right to seek redressal
(c) Right to consumer education
(d) Right to be informed
Ans (b) Right to seek redressal

Read the following passage and answer Q 12 to Q14 on that basis:

Shikha is the branch manager of Maya Handicrafts Pvt. Ltd. The company’s objective
is to promote the sales of Indian handloom and handicraft products. It sells fabrics,
furnishings, ready-mades, and household items are made out of traditional Indian
fabrics.
Shikha decides quantities, variety, colour and texture of all the above items and then
allocates resources for their purchase from different suppliers. She appoints a team of
designers and crafts people in the company, who developed some prints for bed
covers in bright colour on silk. Although the products looked very attractive and
impressive, they were relatively expensive on account of affordability for an average
customer. Shikha suggested that they should keep the silk bed covers for special
festive occasions and offer the cotton bed covers on a regular basis to keep costs
under control.

12. “She appoints a team of designers and crafts people in the company, who developed [1]
some prints for bed covers in bright colour on silk.” Which function of management
is highlighted in this context?
Ans Staffing

13. With reference to the above case, at which level of management Shikha is working? [1]
Ans Middle Level management

14. “Shikha suggested that they should keep the silk bed covers for special festive
occasions and offer the cotton bed covers on a regular basis to keep costs under [1]
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 control.” Which importance of management is highlighted in the quoted line?
(a) Management helps in achieving group goals.
(b) Management increases efficiency.
(c) Management helps in the development of society.
(d) Management helps in achieving personal objectives.
Ans (b) Management increases efficiency.

15. Statement I: For products requiring long term storage like agricultural products, the [1]
warehouses are located near to the market.
Statement II: Higher the level of inventory, higher will be the level of service to
customers but the cost of carrying the inventory will also be high.
Choose the correct option from the following:
(a) Statement I is true, and II is false.
(b) Statement II is true, and I is false.
(c) Both the statements are true.
(d) Both the statements are false
Ans (b) Statement II is true, and I is false

16. ‘Utkarsh uses a new internet connection purchased by his father’. Is he a consumer [1]
under the Consumer Protection Act? State the reason.
Ans Yes he is a consumer under CPA 2019 as any person availing a service with the
approval of a buyer is treated as a consumer under the Act.

17. “The principles of management guide managers to take the right decision in real [1]
world situations”. The given statement shows that the principles of management help
in:
(a) Optimum utilisation of resources and effective administration.
(b) Meeting changing environment requirements.
(c) Provides managers with useful insight into the future.
(d) Scientific/ thoughtful decisions.
Ans (c) Provides managers with useful insight into future.

18. Mr. Vivek is working as the General Manager of Oshin Hotels Ltd. Mr. Vivek [1]
observed that Government was taking a special interest in the Tourism industry as this
sector is an important source of foreign exchange and employment promotion. On the
basis of this news, the company decided to set up hotels at several tourist places.
Oshin Hotels Ltd. established 50 hotels before other companies considered this issue.
Very soon, this brand Oshin Hotels Ltd. became well known in the market. Identify
the importance of
business environment described here.
(a) It enables the firm to identify opportunities and get the first mover advantage.
(b) It helps the firm to identify threats and early warning signals.
(c) It helps in tapping useful resources.
(d) It helps in improving performance.
Ans (a) It enables the firm to identify opportunities and get the first mover advantage.
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19. _________________ sets the minimum level or the factor price at which the product [1]
may be sold.
(a) The utility and demand in the market
(b) Extent of competition in the market
(c) Cost of the product
(d) Government and legal regualtions
Ans (c) Cost of the product

20. Mr. James purchased a car for Rs 30 lakhs from an automobile company and found [1]
some defects in its engine. Despite many complaints, the defect was not rectified.
Suggest him the appropriate authority to file his complaint in three tier machinery
under Consumer Protection Act 2019.
Ans Mr. James can register his complaint in the District Consumer Disputes Redressal
Commission.

21. Name and explain with a suitable example, the technique of Scientific Management [3]
given by Taylor to differentiate between the efficient and inefficient workers.
OR
Name and explain with a suitable example, the technique of Scientific Management
given by Taylor, with the objective of determining the number of workers to be
employed for a task.
Ans Differential piece wage system
This system links wages and productivity. The standard output per day is established [1.5]
and two piece wage rates are used: higher for those who achieve upto and more than
standard output i.e. efficient workers and lower for inefficient and slow workers.
Thus, efficient workers will be rewarded & inefficient will be motivated to improve
their performance.
For example: Standard task is 10 units. Rates are: Rs 50 per unit for producing 10
units or more and Rs 40 per unit for producing less than 10 units [1.5]
Worker A produces 11 Units; he gets Rs 550 (11 units x 50 per unit)
Worker B produces 09 units; he gets Rs 360 (9 units x 40 per unit).
This difference of Rs 190 will motivate B to perform better.
OR
Time Study- It determines the standard time taken to perform a well-defined job by
taking several readings. The method of time study will depend upon volume and [1.5]
frequency of task, the cycle time of operation and time measurement costs.
Considering the standard time, an estimation is done for the number of workers
required to do a task.
For example- On the basis of several observations it is determined that the standard
time taken by the worker to make one cardboard box is 20 minutes. So, in one hour [1.5]
she/he will make 3 boxes. Assuming that a worker has to put in 8 hours of work in a
shift and deducting one hour for rest and lunch, it is determined that in 7 hours a
worker makes 21 boxes at the rate of 3 boxes per hour. Now this is the standard task a
worker has to do. Number of required workers and wages can be decided accordingly.

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22. What is meant by demonetization? State the impact of demonetization over: [3]
i) Money/ Interest rate
ii) Wealth of Private Sector and Public sector
Ans Demonetisation is an economic policy or the process through which the central 1+2
government cancels the legal tender status of a currency unit in circulation. After
demonetisation, that currency unit cannot be used as money.
Impact-
1. Money/ Interest Rate: Decline in cash transactions, increase in bank deposits,
increase in financial savings.
2. Wealth of Private and Public sector- Decline in the wealth of private sector as some
high denomination notes were not returned to banks. The wealth of public sector
remains unaffected.

23. Fahad, purchased a book online from Evergreen publications and when it was [3]
delivered, he noticed that there was no MRP mentioned on it. He browsed the internet
and found that the book was sold at different prices in different places. He filed a case
in District Consumer Disputes Redressal Commission against the publisher. The court
held in favour of Fahad and awarded a compensation of ₹10,000.
(a) Identify and explain the consumer right violated in the above case.
(b) Name and explain the right exercised by Fahad.
Ans (a) Right to be informed is violated: Every consumer has a right to have complete
information about the product he intends to buy including its ingredients, date 1.5 +
of manufacture, price, quantity, directions for use etc . Such information is 1.5
provided by the manufacturer on the package and label of the product.
(b) Right to seek redressal is exercised: This states that every consumer has the
right to get relief in case the product or service falls short of expectations or is
dangerous. He may be provided with replacement/removal of defects or
compensation for any loss or injury suffered. Various redressal forums are set
up by the Government at District, State and National levels.

24. Briefly explain the following features of principles of management: [3]

(i) Universal applicability
(ii) Flexibility
Ans (i) Universal applicability-- the principles of management can be applied in 1.5 +
all types of organizations, business as well as non-business, small as well 1.5
as large enterprises, public sector as well as private sector, manufacturing
as well as service sectors. However, the extent of their applicability would
vary with factors like nature of organization, scale of operations, etc.
(ii) Flexibility- These principles are not rigid prescriptions which have to be
followed absolutely. They can be adapted and modified by the practicing
managers as per the demands of the situation. These principles are like
different tools for different purposes the selection of which depends upon
the discretion of managers.

25. In order to secure the rights, consumers have to fulfill some duties. Mention any four [4]
responsibilities of the consumers.
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 OR
State any four role of consumer organisations and NGOs working for consumer
protection.
Ans Responsibilities of consumers (ANY FOUR)-
1. Ask for a cash memo- A consumer must ask for cash memo on purchase of goods
or services. This would serve as proof of the purchase made.
2. Be aware- About various goods and services available in the market so that an
intelligent and wise choice can be made.
3. Respect the environment. Avoid waste, littering and contributing to pollution.
4. Follow manufacturer’s instructions- Learn about the risks associated with goods
and services and use the products safely.
5. Read labels carefully- to have information about prices, net weight, manufacturing
and expiry dates, etc.
6. Assert yourself- A consumer must assert himself/herself to ensure that he/she gets a
fair deal.
7. Be honest in your dealings. Choose only from legal goods and services and
discourage unscrupulous practices like black-marketing, hoarding etc.
8. File a complaint in an appropriate consumer forum- In case of a shortcoming in the
quality of goods purchased or services availed. Do not fail to take an action
9. Form consumer societies which would play an active part in educating consumers
and safeguarding their interests.
10. Buy only standardized goods- As they provide quality assurance. Thus, look for
ISI mark on electrical goods, FPO mark on food products, Hallmark on jewelry etc.
even when the amount involved is small.
OR
Consumer Organisations and Non-Profit Organisations have a constitution of their
own and are free from government interference. Consumer organisations and NGOs
perform several functions for the protection and promotion of interest of consumers.
These include: (ANY FOUR)
(i) Educating the general public about consumer rights by organising training
programmes, seminars and workshops.
(ii) Publishing periodicals and other publications to impart knowledge about
consumer problems, legal reporting, reliefs available and other matters of interest.
(iii) Carrying out comparative testing of consumer products in accredited laboratories
to test relative qualities of competing brands and publishing the test results for the
benefit of consumers.
(iv) Encouraging consumers to strongly protest and take anaction against
unscrupulous, exploitative and unfair trade practices of sellers.
(v) Providing legal assistance to consumers by way of providing aid, legal advice etc.
in seeking legal remedies.
(vi) Filing complaints in appropriate consumer courts on behalf of the consumers.
vii) Taking an initiative in filing cases in consumer courts in the interest of the
general public, not for any individual.

26. After completing her Bachelors in Fashion Designing from a well-known college in [4]
France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the
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 work in smaller units and each employee is well trained to perform his/her task
efficiently. The salespersons are allowed to close a deal with a buyer by giving a
maximum of 5 % discount, whereas the decision to give any further discount rests
with Aditi as the final authority.
In the earlier period of her business venture, employees were asked to put in extra
hours of work. In return she had promised to give them a special incentive within a
year. Therefore, when the business was doing well, she honoured her commitment by
giving bonus to her employees. However, she tends to be more biased towards her
female employees, when it comes to solve the conflicts among employees.
Briefly explain any two principles of management which are followed by Aditi.
Ans (i) Division of work 2+2
(ii) Centralisation and decentralisation
(iii) Discipline (Explanation of ANY TWO in relation to the case)

27. “It refers to the act of designing and producing the container or wrapper of a product.” [4]
Identify the concept and briefly explain any three functions of the concept being
described in the above lines.
Ans Packaging
Functions of packaging- (a) Product identification (b) Product Protection [1+3]
(c) Facilitating use of the product (d) Product promotion [ANY THREE]

28. As per the directions issued by the Supreme Court of India, the government passed an [4]
order to ban the sale of tobacco products within the area of 200 meters of all
educational institutions as: (a) its consumption is injurious to health, (b) people are
becoming more conscious about health and fitness. This indicates the government’s
attitude towards this business.
(a) What is meant by business environment?
(b) Identify the dimensions of business environment related to above paragraph
by quoting relevant lines.
Ans (a) Business environment- It means the sum total of all individuals, institutions [1]
and other forces that are outside the control of a business enterprise but that
may affect its performance.
(b) Dimensions-
1. Legal environment- “As per the directions issued by the Supreme Court of [1/2+
India, the government passed an order to ban the sale of tobacco products 1/2
within the area of 200 meters of all educational institutions.” each]
2. Social- “(a) its consumption is injurious to health, (b) people are becoming
more conscious about health and fitness.”
3. Political- “This indicates the government’s attitude towards this business.”

29. Define coordination. Briefly explain any three features of coordination. [4]
OR
Define management. Briefly explain the organizational objectives of management.
Ans According to Henri Fayol, “Coordination harmonises, synchronises and unifies
individual efforts for better action and for the achievement of the business 1+3
objectives.”

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Features- (ANY THREE)
1. Coordination integrates group efforts: It integrates diverse business activities into
purposeful group activity ensuring that all people work in one direction to achieve
organizational goals.
2. Coordination ensures unity of action: It directs the activities of different
departments and employees towards the achievement of common goals and brings
unity in individual efforts. For example, the production and sales departments have to
coordinate their work, so that production takes place according to the demand in the
market.
3. Coordination is a continuous process: It is not a specific activity matter or a one-
time function. It begins at the planning stage and continues till controlling. It is
required till the organization continues its operations.
4. Coordination is a pervasive function: Coordination is required in all types of
organisations, in all departments and at all levels. It synchronizes the activities of all
levels and departments as they are interdependent to maintain organizational balance.
In the absence of coordination, there is overlapping and chaos in various departments
instead of harmony and integration of activities.
5. Coordination is the responsibility of all managers: It is equally important at all the
three-top, middle and lower levels of management. At the top level, managers
coordinate with their subordinates for effective implementation of overall policies of
the organisation. At middle level, the managers have to coordinate with both top and
lower-level managers. At the lower level, managers have to integrate the activities of
workers.
6. Coordination is a deliberate function: Coordination is never established by itself,
rather it is a conscious effort on the part of every manager. Cooperation is a voluntary
effort of employees to help one another. Effective coordination cannot be achieved
without cooperation of group members. Cooperation in the absence of coordination
may lead to wasted efforts and coordination without cooperation may lead to
dissatisfaction among employees.
OR
Definition of management- “Management is the process of designing and maintaining 1+3
an environment in which individuals work together in groups and efficiently
accomplish selected aims.”- by Harold Koontz and Heinz Weihrich
Organizational objectives are related to utilization of human and physical resources
to the maximum possible advantage. Organizational objectives can be divided
into Survival, Profit, and Growth.
(a) Survival – Management by taking positive decisions with regard to different
business activities ensures survival of business for long term. Thus it aims at earning
enough revenues to cover the cost.
(b) Profit – Mere survival is not enough for a business. It plays an important role in
facing business risks and successful running of business activities. Profit is essential
to cover costs, and risks of the business.
(c) Growth – Management must ensure growth in the long run which can be
measured by an increase in sales, number of employees, number of products,
additional investment, etc. A business must aim at improving its future prospects in
the long run.
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30. Shagun deals in the manufacturing of handmade baskets. Her baskets are handcrafted [4]
and made for all the special occasions and festivals. She has given it the name of “The
Lap’. The baskets are nicely packed in corrugated boxes to ensure that they do not
spoil during transport. To make the consumers aware about her product, she spent a
lot on printing the pamphlets and brochures. Still, she could not get a good response
from the market. After detailed investigations, she found that there was an undue
delay in delivering her products to the consumers after they had placed the order.
Also, at times, she did not have enough stock with her to satisfy the demand of the
consumers.
(a) Identify the variables of marketing mix, Shagun had given due care.
(b) Which variable of marketing mix she needs to work upon?
(c) Briefly explain the components of the variable identified in (b).
Ans (a) Product Mix and Promotion mix [1+1+
(b) Physical Distribution mix or Place mix 2]
(c) Components-
(i) Order processing – It includes order placement from customers to
manufacturers and swift action of the manufacturer to process the order.
Accurate & speedy order processing leads to profit and goodwill and vice
versa.
(ii) Inventory control- Maintaining adequate levels of inventory is an essential
component of physical distribution. Higher inventory results in higher
customer satisfaction but also leads to higher cost of carrying the
inventory. Optimum Inventory levels can be determined on the basis of
firm’s policy regarding the level of customer services to be offered, cost of
inventory, degree of accuracy of sales forecasts and responsiveness of the
distribution system.

31. Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy [6]
products in Maharashtra state. Aman is a holder of Senior Secondary School
certificate from Central Board of Secondary Education with Business Studies as one
of his elective subjects. Ahmad had done his post graduation in History and Ally in
dairy farming. One day there was a serious discussion between Ahmad and Ally
regarding the nature of management. Ahmad argued that management was a
profession. Whereas Ally argued against it saying that the legal and medical
profession are the only professions because they fulfill all the conditions of
profession. Aman on the basis of his knowledge of business studies explained the
nature of management as a profession to Ahmad and Ally.
Explain, how Aman would have satisfied both Ahmad and Ally.
Ans Aman would have satisfied both Ahmad and Ally by explaining the following [5+1]
features of management as a profession.
1. Well-defined body of knowledge. All professions are based on a well-defined body
of knowledge that can be acquired through instruction. Management too is based on a
systematic body of knowledge comprising well-defined principles. This feature of
profession is present in management.
2. Restricted entry. Entry to the above stated profession is restricted through a

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 prescribed qualification. But there is no restriction on anyone being appointed as a
manager in any business enterprise. So, presently this feature of profession is not
present in management.
3. Professional association. Legal and medical professions are affiliated to
professional associations like bar council and medical council which regulates entry,
grants certificates of practice and formulates and enforces a code of conduct. There
are several associations of practising managers in India, like the AIMA that has laid
down a code of conduct to regulate the activities of their members. There is, however,
no complusion for managers to be members of such an association. So, presently this
feature of profession is not present in management.
4. Ethical code of conduct. Legal and medical professions are bound by a code of
conduct which guides the behaviour of its members. AIMA has devised a code of
conduct for Indian managers but there is no statutory backing for this code. So,
presently this feature of profession is not present in management.
5. Service motive. The motive of the legal and medical profession is to serve their
client’s interests by rendering dedicated and committed service. The basic purpose of
management to help the organisation achieve its goals by providing good quality
products at reasonable prices, thereby serving society, is being increasingly
recognised. So, presently this feature of profession is not fully present in
management.
This shows that management does not satisfy all the criteria of a profession. So,
Aman would have been able to satisfy both Ahmed and Ally by making them
understand that Management is slowly emerging as a profession but at present it’s not
a full-fledged or a true profession.

32. A mixture of tangible and intangible attributes which is capable of being exchanged [6]
for a value with the ability to satisfy customer needs is an important element of
marketing mix’. Identify and state the concept. Also explain the three important
decisions included in this element.
OR
‘It is a social process by which individual groups obtain what they need and want
through creating offerings and freely exchanging products and services of value with
others.’ Identify and state the process. Also explain any three of its features.
Ans Concept- Product Mix- anything that can be offered to a market to satisfy a want or
need. It is offered for attention, acquisition, use or consumption. The important [1.5+
product decisions include deciding about the features, quality, packaging, labelling 1.5x3]
and branding of the products. Three important decisions are explained as under:
a. Branding
b. Labeling
c. Packaging
OR
Process- Marketing- marketing is a social process where in people interact with
others, in order to persuade them to act in a particular way, say to purchase a [1.5+
product or a service, rather than forcing them to do so. 1.5x3]
Features- (ANY THREE)
a. Needs and wants
b. Creating a market offering
c. Customer value
d. Exchange mechanism
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33. Briefly explain following principles of general management: [6]
(a) Scalar Chain
(b) Authority and responsibility
OR
Briefly explain the following principles of scientific management:
(a) Cooperation not individualism
(b) Science, not rule of thumb
Ans (a) Scalar Chain- [3+3]
• The formal lines of authority between superiors and subordinates from the
highest to the lowest ranks is known as scalar chain. This chain should not
be violated as it facilitates smooth flow of communication and unity of
command in the organisation.
• But in emergency employees at same level can contact through Gang
Plank by informing their immediate superiors. Gang plank is a shorter
route which is provided so that communication is not delayed.

(b) Authority and responsibility-

• Authority means power to take decisions and responsibility means obligation [3+3]
to properly complete the job assigned on time.
• Authority and responsibility should be at par with each other. Mere
responsibility without authority makes an employee less interested in
discharging his duties. Similarly giving authority without assigning
responsibility makes him arrogant and there is fear of misuse of power. So,
there must be a balance between authority and responsibility.
• Examples of excess and less authority
OR
(a) Cooperation not individualism-
• It is an extension of the Principle of Harmony not discord. It states that
competition must be replaced by cooperation.
• Labour and management have to realise that they need each other.There must
be equal division of work between workers and management. Constructive
suggestions of workers should be adopted and rewarded if they result in a
substantial reduction in costs.
• For taking important decisions, workers should be taken into confidence. An
open communication system will not require any trade union. Through this, a
paternalistic style of management will prevail.
(b) Science, not rule of thumb-
• Taylor believed that there is only one best method to maximise efficiency.
• There should be scientific study and analysis of each element of a job in order
to replace the old Rule of Thumb/ Trial and Error / hit and miss approach.

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 • It involves investigation of traditional methods through work study and
developing a standard method which will save human efforts, time and
resources.

34. Read the statements given in point 1 and 2, answer the questions that follow: [6]
1) Tea is produced in Assam but is carried to customers not only in this state but also
in other parts of the country.
(a) Identify and explain the function of marketing that enables the marketer to
achieve its goals.
(b) Enumerate any two factors that marketers should take into consideration in
order to analyse the identified needs.
2) Paddy is grown during summer season, but its demand and sale takes place
throughout the year.
(a) Name and state the function of marketing which should be undertaken to
reduce the gap between production and consumption of Paddy.
(b) State by giving two reasons as to why proper discharge of this function is
important.
Ans 1. a) The function of marketing that enables the marketer to achieve its goals is
Transportation. It involves physical movement of goods from one place to [3+3]
another. Since the users of products are widespread and geographically
separated from the place where they are produced it is necessary to move them
to the place where they are needed for consumption.
b) The factors that should be taken into consideration to analyse the
marketing needs are the nature of the product, cost and location of target
market.
2. a) The function of marketing that reduces the gap between production and
consumption of paddy is Storage or Warehousing. Due to irregular demand or
supply, there may be a time gap between production of goods and their sale.
Storage helps in reducing the time gap between production and consumption
and provides time utility.
b) Importance of warehousing:
• To ensure smooth flow of products in the market.
• To protect against any unavoidable delays in delivery or meet contingencies in
demand.

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