3

General Instructions: Same instructions as given in Sample Paper 1.

1. Rishabh joined an entertainment company Alternatives:

Avtaar, as a creative head. As a manager (a) Both Assertion (A) and Reason (R)
looking after the creative unit of the are true and Reason is the correct
company, one of the functions that he has to explanation of Assertion
(b) Both Assertion (A) and Reason (R) are
perform is the process of organising. Which
true and Reason is not the correct
step of the process will he need to perform
explanation of Assertion
after identifying and dividing the work that
(c) Assertion (A) is true, Reason (R) is false.
has to be done in accordance with previously
(d) Assertion (A) is false, Reason (R) is true 1
determined plans?
(a) Identification and division of work 4.
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships 1
2. Identify the characteristic of the business
environment which is highlighted when
changes are taking place too frequently and
it becomes difficult to predict the future.
(a) Uncertainty
(b) Complexity
(c) Inter-relatedness
Identify the dimensions of the business
(d) Relativity 1 environment illustrated in the above picture.
3. Read the following statements: Assertion (a) Technological and social
(A) and Reason (R). Choose the correct (b) Technological and political
alternative from those given below: (c) Political and economic
(d) Social and legal 1
Assertion (A): Decentralisation can be
defined as an even and 5. Juhi owns a shoe factory in Delhi. She has
systematic distribution of noticed that frequent arguments have
been occurring between their design and
authority at every level of
marketing departments which affects the
management.
profit margins of the factory. She takes
Reason (R): An organisational structure professional advice on this matter and the
clearly defines the levels of consultant suggests that these arguments
management and the span of arise due to a need for more communication
control under each level. between different departments and all

46 Business Studies Class XII

https://amzn.to/4fBClzA
 the departments work independently in management is being discussed here. The
isolation. The quality of management that is related characteristic of the function of
absent here is: management referred in the given lines is:
(a) Multi-dimensional (a) It is the first function of management.
(b) Group activity (b) It is the last function of management.
(c) Coordination (c) It is both forward looking and backward-
(d) Dynamic 1 looking.
(d) It is required only in business organisations.
6. The government of India made an
announcement regarding Demonetisation
 1
of the Indian economy on November 8, 2016 10. Raman and Vasudev were two employees
with profound implications for it. The process who were embezzling an import-export
which put restrictions on convertibility of company in Varanasi where they were
domestic money and bank deposits was working. The finance manager of the
meant to create a less-cash economy. The company Sampat Singh became suspicious
argument against the cash-lite economy of the two employees when he realised that
that will justify the above situation is: their activities were not being performed
(a) Internet connectivity is a prerequisite. as per the plans. He installed a software
(b) More people will be introduced into the program that could secretly log every single
formal economy. stroke of the suspects’ computer keys and
(c) Financial saving will increase. send an encrypted email report to the Cyber
(d) Tax evasion will be reduced. 1 police. The police were able to catch the two
dishonest employees red handed and arrest
7. Airlines will be able to offer the benefit of
them. Name the 'Function of Management'
lower pricing to customers on sectors/routes
applicable in the given paragraph.
due to the decision of the civil aviation
ministry to remove price caps from August (a) Staffing
31, 2022. This can help an airline to do better (b) Coordination
performance if they take early decisions (c) Controlling
regarding future courses of action after (d) Organising 1
understanding and doing analysis. Identify
11. Statement I: Controlling is both a forward
the importance of business environment not
and backward-looking function
described here.
of management.
(a) It helps in improving performance.
Statement II: Controlling is a pervasive
(b) It helps in assisting in planning and
function.
policy formulation.
(c) It helps in tapping useful resources. Choose the correct option from the
(d) It enables a firm to identify opportunities following:
and get first mover advantage. 1 (a) Both the statements are true.
8. Alo, a mobility platform is in the process (b) Both the statements are false.
of laying off 400-500 employees in a move (c) Statement I is true, Statement II is false.
aimed at driving cost efficiency. Identify (d) Statement II is true, Statement I is false. 1
the objective of management that the firm 12. Statement I: Transportation helps in
will not be able to achieve by carrying out
creating time utility and
this process.
warehousing helps in creating
(a) Efficiency (b) Social
place utility.
(c) Profit (d) Survival 1
Statement II: The process of classification of
9. Radha started a home cooked food delivery products into different groups
Dabba service. Her mother, who is a great on the basis of their important
cook, decided to help her. They relied on characteristics is known as
friends and family for orders and then on standardisation.
word of mouth. As a step in the process of Choose the correct option from the
ensuring that activities are performed as following:
per her plan of supplying healthy, good (a) Both the statements are true.
quality, reasonable food and earning profit, (b) Both the statements are false.
she decided to keep both qualitative and
(c) Statement I is true, Statement II is false.
quantitative benchmarks towards which
(d) Statement II is true, Statement I is false. 1
she would strive to work. A function of

Sample Paper 3 47

https://amzn.to/4fBClzA
 13. Match the terms of Financial Markets in pays attention to ethical and ecological
Column I with their respective statements in aspects of marketing.
Column II. (a) Selling concept
(b) Product concept
Column I Column II (c) Production concept
(A) Financial (I) It is also (d) Societal Marketing concept 1
market known as 18. Coka Crackers Ltd., a firecracker
Stock Market.
manufacturing company, launched some
(B) Primary (II) It is a market new products on the eve of Diwali which
Market for creation attracted many customers. To meet the
and exchange increased demand, the company employed
of financial children from nearby villages, and in the
assets. urgency of work, they ignored specific safety
(C) Secondary (III) It is also warnings on packets of crackers. Identify
Market known as New which consumer right is being ignored.
Issue Market. (a) Right to be assured
(a) A-(II), B-(III), C-(I) (b) A-(I), B-(III), C-(II) (b) Right to be heard
(c) Right to be informed
(c) A-(III), B-(II), C-(I) (d) A-(I), B-(II), C-(III) 1
(d) Right to seek redressal 1
14. .................... is a number assigned to each
19. From the following which is not a relevant
transaction by the stock exchange and is
statement about advertising:
printed on the contract note.
(a) It is a personal form of communication.
(a) Client code number
(b) It is a paid form of communication.
(b) Unique order code
(c) It is a mass selling technique.
(c) Permanent account number (d) It is inflexible as the message can’t be
(d) Depository participant number 1 adjusted to the needs of the buyer. 1
15. Which among the following are the sales 20. Assertion (A): Stock exchange helps in the
promotion techniques? contribution of economic
(A) Quantity gift growth of the country.
(B) Sampling Reason (R): 
Stock exchange helps in
(C) Public Relations channelising the savings
(D) Advertising into the most productive
(E) Product Combinations investment opportunities.
(F) Personal Selling Alternatives:
Choose the correct alternative from the (a) Both Assertion (A) and Reason (R)
following: are true and Reason is the correct
(a) (B), (C) and (F) (b) (D), (E) and (F) explanation of Assertion.
(b) Both Assertion (A) and Reason (R) are
(c) (A), (C) and (D) (d) (A), (B) and (E) 1 true and Reason is not the correct
16. Choose the incorrect statement. explanation of Assertion.
(a) Providing liquidity to securities is one of (c) Assertion (A) is true, Reason (R) is false.
the functions of stock exchange. (d) Assertion (A) is false, Reason (R) is true. 1
(b) Process of holding shares in electronic 21. State the three functions of middle-level
form is known as Dematerialisation. management of the company.
(c) Securities Exchange Board of India OR
performs the regulatory function of State how management
controlling insider trading and imposing (A) Increases efficiency
penalties for such practices. (B) Creates dynamic organisation 3
(d) Capital market consists of Commercial
22. State any three limitations of using internal
banks, Development banks and Stock
sources for recruitment.
exchanges. 1 OR
17. Identify the concept which is considered to Enumerate any three duties or tasks
be an extension of the marketing concept, that is performed by Human Resource
which apart from customer satisfaction Management. 3

48 Business Studies Class XII

https://amzn.to/4fBClzA
23. Sachin started a fast-food business in his and the financing decisions on a continuous
locality. His business is flourishing and he is basis. Therefore, Mr. Vikrant Dhull began
earning a good amount of profits out of it. with the preparation of a sales forecast
He strictly ensures that the food is properly for the next four years. He also collected
cooked in hygienic conditions, standard relevant data about the profit estimates for
taste has been maintained, food containers the coming years. By doing this, he wanted
are of the best quality and their orders have to be sure about the availability of funds
been executed on time. from internal sources. For the remaining
(A) Name and explain the function of funds, he is trying to find out alternative
management being discussed above. sources.
(B) Also, explain the two importance of the (A) Identify the financial concept being
identified function of management. 3 discussed in the above paragraph.
(B) Explain the points of importance of the
24. From the following information regarding
Stuti Ltd., which is engaged in the production
financial concept identified. 4
of Liner Skates, calculate the Interest 29. Mr. Vaibhav Garg holds the designation of
Coverage Ratio and Return on Investment finance manager at “Jai Shree Limited”. Last
(ROI): (Show workings clearly) year's performance in his department was
Earnings Before Interest and Taxes (EBIT): as per expectation. Currently, he is preparing
a financial blueprint for the next five years.
₹ 4,80,000
To begin with, he tried to forecast the sales
12% Debentures: ₹ 5,00,000 for the next five years. It is so because it is
Total Investment: ₹ 12,00,000 3 the sales on which depends the need for the
25. An enterprise has to tap external sources fixed and working capital. Thus, an estimate
was made with regard to both of these
for filling vacant positions because all the
items. Similarly, he collected data in respect
vacancies cannot be filled by internal source
of possible profits in the coming years. In
of recruitment. Explain any four external
this way, one can know how much capital
sources of recruitment.
will be available from within the business.
OR The rest of the funds will be arranged from
Selection is the process of choosing the best outside the business. He is also thinking
person out of all the prospective candidates about the sources of finance to be adopted
for a job. Explain first four steps of selection outside the business.
process. 4 Identify the concept referred to in the above
26. State any four barriers to communication paragraph. State any two points of objectives
which are concerned with problems and of the financial concept identified. 4
obstructions in the process of encoding 30. Ekta bought a washing machine from a well-
and decoding the message into words or known company trusting authentication
impressions. marks on the product and the manufacturer.
OR The washing machine, however, fused
State any four barriers to communication immediately after installation which puts
which are related to authority relationships, her family at risk. She took this matter to
rules and regulations of the company. 4 the concerned court demanding relief and
compensation.
27. Give any four points of difference between
formal and informal communication. 4 (A) Identify and explain the right violated in
the given case.
28. Ramanath Ltd. is dealing in the import of
(B) State any three reliefs/remedies available
organic food items in bulk. The company
to the consumer. 4
sells the items in smaller quantities in
attractive packages. The performance of the 31. Differentiate between Unity of command
company has been up to the expectations and Unity of direction based on:
in the past. Keeping up with the latest (A) Meaning
packaging technology, the company (B) Aim
decided to upgrade its machinery. For this,
(C) Implications
the Finance Manager of the company,
(D) Significance
Mr. Vikrant Dhull, estimated the amount
of funds required and the timings. This will (E) Prevents
help the company in linking the investment (F) Consequence of Violation

Sample Paper 3 49

https://amzn.to/4fBClzA
 OR on their own. The top management ensures
Fayol's principles of management is that the expenses incurred in formulating
practiced by the management to organise the plans justify the benefits derived from
and regulate the internal activities of an them.
buisness organisation. Explain any six Identify and state the meaning of the
principles of management given by Henri concept being discussed. Also, state the two
limitations and any two features of concept
Fayol. 6
discussed in the given para. 6
32. Megha Ltd. holds an annual management
33. Explain in brief the importance of organising.
program every year in the month of march
OR
in which the top managerial personnel
Explain any four importance of delegation. 6
formulates plans for the next year by
analysing and predicting the future to meet 34. 'Beauty Products Ltd.' is a natural and
future events effectively. ethical beauty brand famous for offering
organic beauty products for men and
As they are responsible for providing
women. The company uses plant-based
direction to the organisation, facts are
materials for its products and is the No. 1
thoroughly checked using scientific
beauty brand in the country. It not only
calculation. Detailed plans are prepared
satisfies its customers but also believes in
after discussion with professional experts.
the overall protection of the planet.
Preliminary investigations are also
undertaken to find out the viability of (A) Identify and explain the marketing
the plan since it is an intellectual activity management philosophy being followed
requiring intelligent imagination and sound by 'Beauty Products Ltd.'
judgement so it is mainly done by the top
(B) State any two other marketing
management. Usually rest of the members
management philosophy.
just implement the plans. Middle-level
managers are neither allowed to deviate (C) State and explain any three functions of
from the plans nor are they permitted to act marketing. 6

50 Business Studies Class XII

https://amzn.to/4fBClzA
 ANSWERS
SAMPLE PAPER - 3

1. (b) Departmentalisation Demonetisation came with the major changes

Explanation: Rishabh needs to perform the in the paying pattern of the consumer. All the
step "departmentalisation" as a process of transactions are to be made online for this
organising. Once work has been divided into purpose internet is necessary.
small and manageable activities then the 7. (c) It helps in tapping useful resources.
activities of same nature are grouped together.
Explanation: Careful scanning of the Business
Such sets facilitate specialisation.
environment helps in tapping the useful
2. (a) Uncertainty resources required for the business. It helps the
Explanation: Business environment is uncertain firm to track these resources and convert them
as it is difficult to predict future happenings into goods and services.
especially when environmental changes are 8. (b) Social
taking place too frequently. Explanation: The firm will not be able to
achieve social objective of management by
Related Theory carrying out this process as they are in the

Other features of business environment. process of laying off it's employees. Social
• Totality of external forces objectives of management should be fulfilled
• Specific and general forces
by each organisation as business is a social
• Complexity
process. It includes providing employment
• Dynamic Nature
• Relativity opportunities, eco-friendly methods of
• Uncertainty production, employment in rural areas, etc.

3. (b) Both Assertion (A) and Reason (R) are true 9. (c) It is both forward-looking and backward-
and Reason is not the correct explanation looking.
of Assertion. Explanation: This situation is based on
Explanation: Decentralisation and organisational controlling function of management.
structure both are different concepts. In Controlling is backward-looking as well
organisational structure, decentralisation can as forward-looking functions as it involves
be done. assessment of past performance. It also aims
at improving the future performance by taking
4. (a) Technological and social the required corrective actions.
Explanation: The illustrated lady is working
10. (c) Controlling
on computer, it is a part of technological
environment. Technological dimension Explanation: The 'function of management'
includes any changes taken place due to the applicable in the given paragraph is
technological advancement and innovation. 'controlling'. Here, Sampat Singh realised that
Social dimension includes social customs, the activities of Raman and Vasudev were not
rituals, the culture in which individual was being performed as per plans, so he decided
educated or lived in. to install software as a corrective action
for the deviation. The controlling function
5. (c) Coordination helps in measuring the progress towards the
Explanation: The quality of management organisational goals, brings any deviations and
that needs to be present in the given case is indicates corrective action.
Coordination. Here all the departments are
11. (a) Both the statements are true.
working in isolation, which is why, coordination
is necessary as it helps to reconcile the goals Explanation: Controlling is a forward-looking
of each department with the goal of the function because it helps to improve the
organisation as a whole. planning process and a backward-looking
function as it analyses past activities to find
6. (a) Internet connectivity is a prerequisite. deviations. It is also a pervasive function of
Explanation: Internet connectivity is a management as every organisation of every
prerequisite for the cash-lite economy. type uses it.

60 Business Studies Class XII

https://amzn.to/4fBClzA
12. (b) Both the statements are false Explanation: Securities Exchange Board of India
Explanation: Warehousing helps in creating preforms the protective function of controlling
time utility and transportation helps in creating insider trading and imposing penalties for such
place utility. The process of classification of practices.
products into different groups on the basis of 17. (d) Societal Marketing concept
their important characteristics is known as
Explanation: Marketing concept focused
grading.
on the satisfaction of consumer needs, but
Caution societal marketing concept focuses on the
 Many students do not read both the statement ethical and ecological aspects of marketing.
carefully and choose the wrong option. Societal Marketing emphasises on social
responsibilities and suggests that to sustain
13. (a) (A)-(II), (B)-(III), (C)-(I) long-term success, the company should
Explanation: A financial market is a place develop a marketing strategy to provide value
where new financial assets are created and to the customers to maintain and improve
traded. both the customers’ and society’s wellbeing
Primary market and secondary market are a better than the competitors.
parts of capital market. 18. (c) Right to be informed
Primary Market: A business can raise money Explanation: Consumers have a right to be
by selling equity shares, debentures, loans and informed. Coka Crackers violates the right
deposits. of its customers by not informing about the
Secondary Market: It is a market where quality, amount, and danger of the products
existing securities can be bought and sold. by failing to include a security warning on
cracker packets.
Related Theory 19. (a) It is a personal form of communication.
 Functions of financial markets: Explanation: Advertising is an impersonal form
• Mobilisation and channeling of savings into most of communication. It is used for commercial
efficient uses. purposes to promote specific products or
• Encourages and facilitates price discovery. services. It is frequently utilised by business as
• Creates liquidity for financial assets. marketing strategy.
• Decreases transaction costs.
20. (a) Both Assertion (A) and Reason (R) are true
14. (b) Unique order code and Reason is the correct explanation of
Explanation: The stock exchange issues a Assertion.
number, which is printed on the contract note, Explanation: Stock exchange contributes
to identify each transaction by its unique order to the economic growth of the country by
code. channelising the savings into most productive
opportunities. This leads to capital formation
Related Theory and economic growth of the country.
 Dematerialisation: Dematerialisation is the process
by which a client can get physical certificates 21. MARKS BREAKDOWN Ch 1
converted into electronic balances. An investor Topic: Levels of Management
intending to dematerialise its securities needs to
have an account with a Depository Participant. The State 3 functions (1m + 1m + 1m)
client has to deface and surrender the certificates Value Points:
registered in its name to the Depository Participant. (to get full marks)
Assign duties and responsibilities
15. (d) (A), (B) and (E) Coordination with departments
Explanation: Quantity gifts, sampling, and Motivates employees
product combinations are the various sales
promotion techniques. Rest, all the options The three functions of middle-level
namely, Public Relations, advertising, and management are as follows:
personal selling are the elements of the (1)
Assign duties and responsibilities to
promotion mix. employees: One of the very important
function of middle level management is
16. (c) Securities Exchange Board of India performs to assign duties and responsibilities to the
the regulatory function of controlling employees of different departments to
insider trading and imposing penalties for ensure smooth implementation of the plan
such practices. made by the top management.

Sample Paper 3 61

https://amzn.to/4fBClzA
 (2) Coordination with departments: Another OR
major function of middle-level managers is
to cooperate and coordinate with different MARKS BREAKDOWN Ch 6
departments within the organisation
Topic: Human Resource Management
to ensure smooth functioning in the
organisation. Write 3 duties or tasks. (1m+1m+1m)
Value Points:
(3) Motivates employees: Middle-level
(to get full marks)
managers ensure that the employees are
Qualified candidates
motivated enough to perform the assigned Analyse and gather data
tasks and duties effectively and efficiently. Developing compensation
OR Maintaining labour relations
Handling complaints (Any three)
MARKS BREAKDOWN Ch 1
Human resource management includes the
Topic: Importance of Management
following tasks:
Describe (A) (1½m) & (B) (1½m)
(1) Finding qualified candidates through
Keywords:
recruitment.
(A) 
Reducing costs, increasing productivity, better
planning, etc. (2) Analysing and gathering data on jobs to
(B) Resist changes, shift from a safe environment prepare job descriptions.
into a new environment, maintain a competitive (3) Developing compensation and incentive
edge
plans, training and developing employees.
(A) Increases efficiency: Management (4) Maintaining labour relations and union-
helps the organisation to improve the
management relations.
efficiency of operations by reducing costs
and increasing the overall productivity of (5) Handling grievances and complaints.
the organisation through better planning, (Any three)
organising, directing, and controlling
the various activities of the business 23. Ch 8
MARKS BREAKDOWN
organisation.
Topic: Controlling Process
(B) Creates dynamic organisation: It is
generally observed that the people at work (A) Identify and describe the function of
resist changes as it often means shifting management (½m + ½m)
from a comfortable and safe environment (B) Write 2 importance of controlling. (1m + 1m)
into a new and challenging environment. Value Points:
Management helps the organisation to (to get full marks)
adapt to these changes to maintain a Accomplishment of Organisational goals
competitive edge in the market. Efficient utilisation of resources
(A) The function of management that is being
22. MARKS BREAKDOWN Ch 6 discussed is Controlling.
Topic: Sources of Recruitment Controlling means that all the activities in
Write 3 limitations. (1m+1m+1m) an organisation are performed as per the
Value Points: standards set by the management and
(to get full marks) correct the deviations (if any).
Scope of fresh talent
(B) The following are the importance of
Employees become lethargic
Competition spirit may hampered
controlling:
Frequent transfers reduce productivity (1) Accomplishment of organisational
(Any three) goals: The controlling function of
The limitations of using internal sources for management helps to measure the
recruitment are as follows: progress of the organisation’s goals
(1) Scope for induction of fresh talent is reduced. by analysing deviations and taking
(2) Employees may become lethargic. corrective action against those
(3) New enterprises cannot use internal deviations.
sources of recruitment. (2) Efficient utilisation of resources:
(4) Spirit of competition among the employees Under the controlling function, each
may be hampered. activity is performed in accordance
(5) Frequent transfers of employees may often to set standards. This will ensure the
reduce the productivity of the organisation. efficient use of organisational resources.

62 Business Studies Class XII

https://amzn.to/4fBClzA
24. MARKS BREAKDOWN Ch 9 institutions is known as campus
recruitment. Many renowned companies
Topic: Concept of Capital Structure
and organisations maintain a close link
Calculate ICR (1½m) & ROI (1½m)
with colleges and universities to recruit
Interest Coverage Ratio fresh qualified personnel for various
managerial job roles.
Earnings before Interest and Tax
=
Interest Expense OR

` 4, 80, 000 MARKS BREAKDOWN Ch 6

= = 8 times
`60, 000 Topic: Selection Process

Return on Investment Explain (1m+1m+1m+1m)

Value Points:
Earnings before Interest and Tax (to get full marks)
= ×100
Total Investment Preliminary Screening
Selection Tests
` 4, 80, 000 Employment Interview
= × 100 = 40%
`12, 00, 000 Reference and background checks

Working: The first four steps of selection process are as

Interest Expense = 12% of Debentures follows:
= 12% × ₹ 5,00,000 (1) Preliminary Screening: It helps in rejecting
= ₹ 60,000 applicants who do not meet the basic
criteria and qualities for the vacant post.
25. MARKS BREAKDOWN Ch 6 Preliminary interviews are scheduled for
those whose applications are chosen.
Topic: Sources of Recruitment
Explain 4 sources (1m+1m+1m+1m)
(2) Selection Tests: An employment selection
Value Points: test is a mechanism that attempts
(to get full marks) to measure certain characteristics of
Direct Recruitment individuals. These ranges from aptitudes
Casual Callers such as manual dexterity, to intelligence, to
Web Publishing
personality.
Campus Recruitment
Important tests to be taken to select the
The external sources of recruitment are as employees are:
follows: (1) Intelligence test
(1) Direct Recruitment: In direct recruitment, (2) Aptitude test
an organisation displays a notice on the (3) Personality test
bulletin board with information about (4) Trade test
job openings, including the number of (5) Interest test
openings, qualifications that applicants (3) Employment Interview: The interview
must possess, and the date of the interview. is conducted to have an in-depth formal
(2) Casual Callers: In this, recruitment takes conversation to correctly evaluate the
place from a list of job applications that suitability of a candidate for the job. The
are kept up to date with their contact main role of the interviewer is to seek
information about the interviewee. But,
information.
nowadays, the interviewee also seeks
(3) Web Publishing: Nowadays, the Internet
information from the interviewer to know
is becoming a common source of
about the policies and work culture of the
recruitment. There are a few websites such company.
as www.naukri.com, www.jobstreet.com, (4) Reference and background checks:
etc specifically designed to provide relevant Nowadays, employers request names,
job-related updates and information to addresses, and contact details of references
both job seekers and job providers. to verify the true identity of the applicant
(4) Campus Recruitment: Recruitment of such as details of previous employers,
candidates directly from educational colleagues, etc.

Sample Paper 3 63

https://amzn.to/4fBClzA
 26. MARKS BREAKDOWN Ch 7 OR
Topic: Barriers to Communication MARKS BREAKDOWN Ch 7
Write any 4 Semantic barriers (1m +1m + 1m + 1m) Topic: Barriers to Communication
Value Points:
Write any 4 Semantic barriers (1m +1m + 1m + 1m)
(to get full marks)
Value Points:
Badly expressed message
(to get full marks)
Different meanings of a word
Organisational policy
Error in communication
Rigid rules and regulations
Technical jargon body
Psychological distance
Language and gesture decoding (Any four)
Complexity
These barriers to communication are referred Timely communication (Any four)
as Semantic barriers. They are as follows:
These barriers that are related to authority
(1) Sometimes intended meaning may relationships, rules and regulations of the
not be conveyed by a manager to his
company are referred as Organisational
subordinates due to badly expressed
barriers. They are as follows:
messages which may be on account of
inadequate vocabulary, usage of wrong (1) If organisational policy either explicitly
words, omission of needed words, etc. or implicitly is not supportive to free
(2) A word may have different meanings flow of communication it may hamper
and the receiver has to perceive one effectiveness of communications.
such meaning for the word used by the (2) Rigid rules and regulations, cumbersome
communicator. procedures may be a hurdle to communication,
(3) If the translator is not proficient with as communications through prescribed
both the languages, mistakes may channels may result in delays.
creep in, causing different meanings to (3) Status of superior may create
communication. psychological distance between him and
(4) Some communications may have certain his subordinates.
assumptions which are subject to different
(4) Complexity in the organisation caused
interpretations.
by the number of managerial levels may
(5) It is usually found that specialists use
delay and distort the communication as
technical jargon while explaining to
the number of filtering points is more.
persons who are not specialists in the
concerned field and therefore they may (5) If facilities like frequent meetings,
not understand the actual meaning of suggestion box, and complaint box, social
many words. and cultural gathering, transparency
(6) If there is no match between what is said in operations, for smooth, clear and
and what is expressed in body movements, timely communications are not provided,
communications may be wrongly perceived. communications may be hampered.
(Any three) (Any four)

27. MARKS BREAKDOWN Ch 7

Topic: Formal and informal communication
Differentiate (1m+1m+1m+1m)
Value Points:
(to get full marks)
Definition
Reliability
Rules and Regulations
Channels

Four points of differences between formal communication and informal communication are as follows:

Basis Formal Communication Informal Communication

(1) Definition Formal communication is described as Unofficial communication between
communication that occurs through two or more people is referred to as
official, formal, or channelised means. informal communication.

64 Business Studies Class XII

https://amzn.to/4fBClzA
 Basis Formal Communication Informal Communication
(2) Reliability The reliability of information is higher. The reliability of information is less.
(3) Rules and The rules and regulations are rigid. The rules and regulations are not rigid.
Regulations
(4) Channels Utilises formal channels such as Occurs through informal channels like
memos, emails, meetings, reports, etc face-to-face conversations, phone calls,
for communicating information. text messages, social media, etc for
communicating information.

(1) The concept referred to in the given

28. MARKS BREAKDOWN Ch 9 paragraph is financial planning. It includes
Topic: Concept of Financial Planning establishing an organisation's financial
(A) Analyse the concept (1m) blueprint. It is the process of evaluating a
(B) Write the importance of financial planning. business's funding needs and identifying
(1m+1m+1m) potential sources from which it might be
Value Points:
raised.
(to get full marks) (2) The objectives of the financial planning are:
Predict future events (i) To ensure availability of funds
Prevent business from volatility whenever required: It includes the
Facilitates the coordination proper estimation of funds required
Make comprehensive action plans for different purposes as and when
Connect present to future (Any three) needed. For example, purchase of
long-term assets as to meet day to
Financial planning is the concept covered in day expenses. The most critical part is
this paragraph. to estimate the correct time at which
The following aspects underline its significance: these funds will be required.
(1) It assists in preparing for unforeseen (ii) To see that the firm does not raise
circumstances. It helps in scenario planning. resources unnecessarily: Excess funding
In this way, it better equips a company to is almost as bad as inadequate funding.
deal with challenging circumstances. Even if there is surplus money, a good
financial planning will put it to the
(2) It helps in preventing shocks and surprises. best possible use so that financial
With financial planning, an organisation resources are not left idle and won't
can identify potential future instances of unnecessarily add to the cost.
fund shortages or surplus. As a result, it
gives managers a head start on similar 30. MARKS BREAKDOWN Ch 12
circumstances.
Topic: Rights of a Consumer
(3) It establishes a relationship between
(A) Identify (½m) and explain (½m) the right.
investment and financing decisions.
(B) Write 3 remedies. (1m + 1m + 1m)
(or any other relevant point)
Value Points:
(to get full marks)
Related Theory Replacement of the Product
 Financial Planning strives to ensure availability of Refund of the Purchase Price
funds whenever required and to see that firm does Compensation for Damages
not raise funds unnecessarily. It is an important part
(A) The consumer right being violated in the
of overall planning of any business enterprise.
given case is ‘Right to Safety’.
According to the right to safety, the
29. MARKS BREAKDOWN Ch 9
consumer has a right to be protected against
Topic: Concept of Financial Planning goods or services that are dangerous to the
Identify (1m) & Describe (1m) the concept life and health of the consumer.
discussed. (B) Three relief/remedies available to the
Write 2 objectives of financial planning. (1m+1m) consumer are as follows:
Value Points: (1) Replacement of the Product: In case
(to get full marks) of defective goods, the consumer can
Proper estimation request a replacement of the defective
Excess funding
product with a new one free from any
Good planning (Any two)
defects.

Sample Paper 3 65

https://amzn.to/4fBClzA
 (2) Refund of the Purchase Price: If the (3) Compensation for Damages: The
product cannot be replaced or if the consumer may seek compensation for
consumer prefers not to accept a any damages or inconveniences caused
to him/her by the defective product,
replacement, they can demand a full including potential risks to safety and
refund of the purchase price paid to any additional costs incurred by him/
purchase the product. her due to the defect.

31. MARKS BREAKDOWN Ch 2

Topic: Fayol's Principles of Management
Differentiate (1m+1m+1m+1m+1m+1m)
Value Points:
(to get full marks)
Meaning
Aim
Implications
Significance
Prevents
Consequence of Violation
The differences between Unity of Command and unity of Direction are as follows:

Basis Unity of Command Unity of Direction

(A) Meaning According to the principle of Unity of According to the principle of Unity
Command, each subordinate should of Direction, each group of activities
receive orders and be accountable/ having the same objective must have
answerable to only one superior. one head and one plan.
(B) Aim It aims to avoid confusion and fix It aims to direct the efforts of all
responsibility. It also prevents the employees to achieve goals of the
condition of dual subordination. organisation. It also helps in preventing
overlapping of activities.
(C) Implications It is related to the functioning of It is related to the functioning of the
single personnel/employee of the entire organisation. Thus, it affects the
organisation. entire organisation.
(D) Significance It improves the efficiency of the It ensures unity of action and
employee and brings harmony coordination of efforts.
and discipline to the actions of the
subordinates.
(E) Prevents Unity of command prevents confusion Unity of direction prevents the wastage
related to tasks to be done. of resources.
(F) Consequence The violation of Unity of command will The violation of Unity of direction
of Violation create confusion as to whose order a will lead to unnecessary duplication
subordinate has to comply with and to of efforts and wastage of the firm’s
whom he/she should report. resources.
OR The principles of Management given by Henri
Fayol are:
MARKS BREAKDOWN Ch 2
(1) Equity: According to Fayol, this principle
Topic: Fayol's Principles of Management emphasises on kindliness and justice
Enumerate any 6 principles in the behavior of managers towards
(1m+1m+1m+1m+1m+1m) workers. There should be no discrimination
Value Points: against anyone on account of sex, religion,
(to get full marks) language, caste, belief or nationality, etc.
Equity
(2) Remuneration of Employees: The overall
Remuneration of employees
pay and compensation should be fair to
Initiative
both employees and the organisation.
Division of work
The employees should be paid fair
Order
wages, which should give them atleast
Espirit de corps
a reasonable standard of living. At the
(or any other relevant point)
same time it should be within the paying

66 Business Studies Class XII

https://amzn.to/4fBClzA
 capacity of the company. In other words, not permitted to deviate from the pre-
remuneration should be equitable. determined course. Thus, lower-level
(3) Initiative: Workers should be encouraged managers often lose their creativity in the
to develop and carry out their plans process.
for improvements according to Fayol. (2) Planning involves huge costs: “The top
Initiative means taking the first step with management ensures that the expenses
self-motivation. It is one of the traits of incurred in formulating the plans justify
an intelligent person. Initiative should be the benefits derived from them”. As
encouraged. planning is based on future predictions, it
(4) Division of work: According to this requires much thought, analysis, scientific
calculation, etc., which are to be used for
principle, work should be divided into small
formulating a course of action. This involves
tasks and should be assigned to the person
high costs.
who is competent in the concerned field.
This also leads to specialisation. The two features of planning discussed in the
given case are:
(5) Order: The ‘order’ principle states that
there should be a fixed place for everything (1) Planning is mental exercise: “Since it is
and everyone in the organisation. This an intellectual activity requiring intelligent
imagination and sound judgement so, it
principle states that people and materials
is mainly done by top management” It
must be present in their fixed place so that
requires the use of good discretion and
efficiency should be maximised in the
thought. Planning requires sound thought
operations of the business.
rather than action because it specifies
(6) Espirit de corps: According to Henri Fayol, what has to be done in the future.
management should promote team spirit
(2) Planning is futuristic: “The top management
of unity and harmony among employees formulates plans for the next year by
to achieve the overall goals of the analysing and predicting the future to
organisation. meet future events effectively”. Planning is
futuristic as it anticipates the future and aids
32. MARKS BREAKDOWN Ch 4 in preparing for uncertain future events.
Topic: Concept of Planning
Identify (1m) and Explain (1m) the concept 33. MARKS BREAKDOWN Ch 5
identified. Topic: Importance of Organising
Write 2 limitations (2m) & 2 features (2m) of the
identified concept. Explain the importance of organising.
Value Points: (1½m+1½m+1½m+1½m)
(to get full marks) Value Points:
Limitations: (to get full marks)
Leads to rigidity Benefits of Specialisation
May not work in a dynamic environment Clarity in working relationships
Reduces creativity Optimum utilisation of resources
Huge costs Adaptation to change
Time consuming (Any two) The importance of organising function of
Features: management is as follows:
Focuses on achieving goals
Pervasive
(1) Benefits of specialisation: The workforce's
Continuous jobs are systematically allocated as a
Mental exercise (Any two) result of organising. The fact that the
particular personnel is performing a certain
The concept that is being talked about is job regularly, decreases the workload
planning. The act of “thinking and deciding in and increases production. A worker can
advance” about “what is to be done” and “how specialise by gaining experience in a
it is to be done” is known as planning.
certain field by performing the same task
The two limitations of planning discussed in repeatedly.
the given case are:
(2) Clarity in working relationships:
(1) Planning reduces creativity: “Middle Clarifying lines of communication and
– level managers are neither allowed identifying who is to report to whom
to deviate from the plans nor they are are two benefits of creating working
permitted to act on their own”. The top relationships. This clears up any ambiguity
management makes the plans, and in the transmission of information and
the lower levels of management are instructions.

Sample Paper 3 67

https://amzn.to/4fBClzA
 (3) Optimum utilisation of resources: 34. MARKS BREAKDOWN Ch 11
Through organising, all human, financial,
Topic: Concept of Marketing and Marketing
and material resources are used effectively. Management Philosophies
The most effective use of resources is made
(A) Identify (½m) & describe (½m) the marketing
possible by the right job assignment, which management philosophy.
also prevents work from overlapping. (B) Write the other 2 marketing management
(4) Adaptation to change: A business philosophies. (1m +1m)
enterprise can adapt to changes in Value Points:
the business environment through the (to get full marks)
organising process. It paves the way Product Concept
for a smooth transition by enabling the Selling Concept
organisation structure to be appropriately Production Concept (Any two)
updated and by revising the inter (C) Write 3 functions of marketing (1m+1m+1m)
relationships among managerial levels. Value Points:
OR (to get full marks)
Gathering and analysing market information
Ch 5 Marketing Planning
MARKS BREAKDOWN
Customer support services
Topic: Delegation (or any other relevant point)
Explain the importance of Delegation
(A) The marketing management philosophy
(1½m + 1½m + 1½m + 1½m)
being followed is Societal marketing
Value Points:
concept. Societal marketing concept
(to get full marks)
aims at satisfying customers' wants
Effective Management
while also promoting the protection of
Employee Development
the environment, its natural resources,
Motivation of employees
and society as a whole. According to this
Facilitates growth of organisation
marketing philosophy, as businesses are
Importance of delegation are as follows: an integral part of society, they should give
(1) Effective management: By giving something back by providing social services
employees more responsibility, managers like fighting poverty and boosting literacy.
can work more effectively since they (B) The other two marketing concepts are as
have more time to focus on crucial issues. follows:
They have the opportunity to flourish in
(1) Product Concept: This is another
new areas because they are not forced to
marketing concept that emphasises
perform routine work.
more on quality of the product than
(2) Employee development: Delegation gives
the quantity. Consumers choose high-
employees greater opportunities to use
quality products over all other factors,
their skills, which may help them develop
including cost and product availability.
hidden talents. It enables employees
to acquire the abilities necessary to (2) Selling Concept: This philosophy is
carry out challenging jobs and take on based on the actual sale of the product.
responsibilities that will enhance their (C) Three functions of marketing are as follows:
professional skills. (1) Gathering and analysing market
(3) Motivation of employees: The talent information: One of the important
of the employees can be developed function of marketing is to gather and
through delegation. It has psychological analyse market information to identify
advantages as well. When a superior needs and wants of the customers.
assigns a task to a subordinate, it includes
(2) Marketing Planning: Another
more than just the sharing of work; it
also shows confidence on both sides— significant function of marketing is to
commitment from the subordinate and develop suitable marketing plan to
trust from the superior. achieve the overall objectives of the
organisation.
(4) Facilitates growth of organisation:
Delegation helps the organisation to grow (3) Customer support services: A
and expand the operations of buisiness by yet another important function of
providing trained, experienced and skilled marketing is to develop customer
workforce to take up leading roles in new support services such as customer
ventures of the organisation. grievance cells, after sales services, etc.

68 Business Studies Class XII

https://amzn.to/4fBClzA