CBSE Class 12 Business Studies Question Paper 2025 Solved Code 66-1-2

1. Statement-I: Motivation is a complex process as individuals are heterogeneous in their expectations, perceptions and reactions.
Statement-II: Motivation can be either positive or negative.
Choose the correct option from the following: [1 Mark]
(A) Statement I is true and Statement II is false.
(B) Statement II is true and Statement I is false.
(C) Both Statement I and Statement II are true.
(D) Both Statement I and Statement II are false.

Answer: (C) Both Statement I and Statement II are true.

Teacher's Note:
a) Motivation is complex because every person has different needs, expectations and reactions.
b) Positive motivation uses rewards like promotion; negative motivation uses fear like demotion or penalty.

2. Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication.
The point of importance of organizing described above is: [1 Mark]
(A) Adaptation to change
(B) Effective administration
(C) Development of personnel
(D) Expansion and growth

Answer: (B) Effective administration

Teacher's Note:
a) Keywords "clear description of jobs" and "avoid confusion and duplication" point to effective administration.
b) Do not confuse it with clarity in working relationships, which is about who reports to whom.

3. High inflation rates generally result in constraints on business enterprises as they increase the various costs of business such as the purchase of raw materials and payment of wages and salaries to employees etc. The dimension of business environment referred to above is: [1 Mark]
(A) Political Environment
(B) Technological Environment
(C) Social Environment
(D) Economic Environment

Answer: (D) Economic Environment

Teacher's Note:
a) Inflation, interest rates, income and stock market trends are all economic factors.
b) Remember the PESTL dimensions: Political, Economic, Social, Technological and Legal.

4. In an informal organisation, authority arises out of _____. [1 Mark]
(A) Virtue of position in management
(B) Company's rules and policies
(C) Scalar chain
(D) Personal qualities

Answer: (D) Personal qualities

Teacher's Note:
a) In an informal organisation, leaders are chosen by the group because of their personal qualities.
b) Authority from position, rules and scalar chain belongs to the formal organisation.

5. Which of the following statement is correct about personal selling: [1 Mark]
(A) It is an impersonal form of communication.
(B) Personal selling does not allow a sales person to develop personal relationships with the prospective customers.
(C) Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making a sale.
(D) Personal selling refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase of a product or service.

Answer: (C) Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making a sale.

Teacher's Note:
a) Personal selling is a personal, face-to-face, two-way form of communication.
b) Option (A) describes advertising and option (D) describes sales promotion.

6. Sadhna, a graduate of a reputed institute of management, is a successful manager. She applies her acquired knowledge in a personalised and skillful manner in difficult situations at work. She uses her imagination and creativity in handling these situations.
The aspect of the nature of management highlighted in the above case is: [1 Mark]
(A) Management as an Art
(B) Management as a Science
(C) Management as a Profession
(D) Management both as a Science and as a Profession

Answer: (A) Management as an Art

Teacher's Note:
a) "Personalised application" of knowledge and "creativity" are the key features of art.
b) Science is about systematic, universally valid principles, not personal skill.

7. Match the concepts of marketing in Column I with their respective explanations in Column -II:
Column-I | Column - II
(a) Product concept | (i) Its main focus is on quality, performance and feature of the product.
(b) Selling concept | (ii) Its main focus is on satisfaction of customer needs.
(c) Marketing concept | (iii) Its main focus is on aggressively persuading buyer to purchase the existing product.
(d) Societal concept | (iv) Its main focus is on satisfaction of customer needs and society's well-being.
Choose the correct options from the following: [1 Mark]
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (iii) (ii) (i) (iv)
(C) (ii) (i) (iii) (iv)
(D) (i) (iii) (ii) (iv)

Answer: (D) (i) (iii) (ii) (iv)

Teacher's Note:
a) Product concept focuses on product quality; selling concept on aggressive selling of existing products.
b) Marketing concept focuses on customer satisfaction; societal concept adds the well-being of society.

8. Statement -I: Regulation of takeover bids by companies is one of the Regulatory functions of Securities and Exchange Board of India.
Statement-II: Training of intermediaries of securities market is one of the Development functions of Securities and Exchange Board of India.
Choose the correct option from the following: [1 Mark]
(A) Statement I is correct and Statement II is incorrect.
(B) Statement II is correct and Statement I is incorrect.
(C) Both Statement I and Statement II are correct.
(D) Both Statement I and Statement II are incorrect,

Answer: (C) Both Statement I and Statement II are correct.

Teacher's Note:
a) Regulatory functions include registration of intermediaries and regulation of takeover bids.
b) Development functions include training of intermediaries and promoting research in the securities market.

9. Alfa Graphics Ltd. was a reputed Indian company which had been in business for many years. The Chief Executive Officer of the company, Rohit Gupta always believed in understanding the business environment as well as responding and adapting to it When he found that a foreign multinational company, Leno Graphics, is entering the Indian market with new substitutes, he prepared to meet this threat by reducing cost and creating good quality and aesthetically appealing layouts, advertisements, logos etc. As a result, Alfa Graphics Ltd. was not only able to retain its own customers, but also started getting new projects:
The point of importance of Business Environment discussed above is: [1 Mark]
(A) Tapping useful resources.
(B) Identifying threats and early warning signals
(C) Improving performance
(D) Identifying opportunities and getting first mover advantage

Answer: (B) Identifying threats and early warning signals

Teacher's Note:
a) The entry of a foreign competitor with substitutes is a threat, and the company prepared to meet it.
b) Look for the word "threat" in the case; opportunities would mean something new to exploit.

10. The risk related to inability to meet fixed financial charges like interest payment and other repayment obligations is known as: [1 Mark]
(A) Operating risk
(B) Financial risk
(C) Business risk
(D) None of the above

Answer: (B) Financial risk

Teacher's Note:
a) Financial risk rises as the use of debt in the capital structure rises.
b) Interest on debt is a fixed financial charge that must be paid even when profits are low.

11. Salim and Karim are good friends. They started a business of selling high quality seeds for growing organic vegetables. They are offering 200 varieties of vegetable seeds suitable for terrace gardens, balconies and backyards. Due to the growing trend towards healthy consumption habits, there is a huge demand for their seeds. The dimension of business. environment being discussed above is: [1 Mark]
(A) Economic Environment
(B) Political Environment
(C) Social Environment
(D) Legal Environment

Answer: (C) Social Environment

Teacher's Note:
a) Health consciousness and changing consumption habits are social trends.
b) Social environment includes customs, traditions, values, lifestyle and health trends.

12. Which of the following statement is correct with respect to 'Exchange Mechanism', a feature of Marketing? [1 Mark]
(A) For an exchange it is necessary that there should be involvement of at least three parties.
(B) The parties do not have the freedom to reject other parties offer.
(C) The acceptance of the offer for each party has to take place on the basis of compulsion.
(D) For an exchange it is necessary that each party should be capable of offering something of value to the other.

Answer: (D) For an exchange it is necessary that each party should be capable of offering something of value to the other.

Teacher's Note:
a) An exchange needs at least two parties, each offering something of value to the other.
b) Each party must be free to accept or reject the offer, so options (B) and (C) are wrong.

13. Which of the following is not a protective function of Securities and Exchange Board of India: [1 Mark]
(A) Prohibition of fraudulent and unfair trade practices.
(B) Controlling insider trading and imposing penalties for such practices.
(C) Promotion of fair practices and code of conduct in securities market.
(D) Undertaking measures to develop the capital markets by adapting a flexible approach.

Answer: (D) Undertaking measures to develop the capital markets by adapting a flexible approach.

Teacher's Note:
a) Developing the capital market through a flexible approach is a development function of SEBI.
b) Protective functions guard investors from fraud, insider trading and unfair practices.

14. HG Air Conditioner Pvt. Ltd. is lagging behind its scheduled production target by a month. Despite a high demand, the company is struggling to meet its production target. Even after taking measures like training of employees and assigning additional workers and equipment to the project, the targets could not be met. The Production Manager, now, decided to revise the standards.
Identify the step of the controlling process under which the Production Manager decided to revise the standards. [1 Mark]
(A) Setting performance standards
(B) Measurement of actual performance
(C) Analysing deviations
(D) Taking corrective action

Answer: (D) Taking corrective action

Teacher's Note:
a) When deviations cannot be removed by other measures, revising the standards is itself a corrective action.
b) Do not choose "Setting performance standards", as that is the first step, done before work begins.

15. Bimal Rai is working in Funny Bunny Ltd. The company manufactures games and toys for children. The basic task of Bimal Rai is to integrate diverse elements and coordinate the activities of different departments. He also analyses the business environment and its implications for the survival of the firm. The level of management at which Bimal Rai is working is: [1 Mark]
(A) Top level
(B) Middle level
(C) Operational level
(D) Both Middle and Operational level

Answer: (A) Top level

Teacher's Note:
a) Integrating diverse elements and analysing the business environment for survival are top level tasks.
b) Middle level managers mainly implement plans made by top management.

16. Shridhan wanted to purchase an electric car. He visited a retail showroom of a car company where these cars were displayed. The Marketing Manager of this showroom told Shridhan that the company offers credit facilities, maintenance services and many other services that help in bringing repeat sales and developing brand loyalty for their cars. The marketing function being discussed by the Marketing Manager in the above case is: [1 Mark]
(A) Product Designing and Development
(B) Marketing Planning
(C) Customer Support Services
(D) Branding

Answer: (C) Customer Support Services

Teacher's Note:
a) Credit facilities, maintenance and after-sales services are customer support services.
b) These services lead to repeat sales and brand loyalty, which are the keywords in the case.

17. One of the responsibilities of an aware consumer is to buy only standardised goods as they provide quality assurance. Identify the quality certification mark to be seen by a consumer in the picture given below: [1 Mark]
(A) ISI Mark
(B) Agmark
(C) Hallmark
(D) FPO/FSSAI Mark

[Figure: Picture of a quality certification mark]

Answer: (A) ISI Mark

Teacher's Note:
a) The ISI mark is given by the Bureau of Indian Standards (BIS) for industrial and electrical goods.
b) Agmark is for agricultural products, Hallmark for gold jewellery and FPO/FSSAI for food products.

For Visually Impaired Candidates (in lieu of Q. 17)

Madhu wants to buy Jewellery for her daughter's marriage. Which of the following quality certification mark should she look for while buying Jewellery: [1 Mark]
(A) FPO/FSSAI Mark
(B) ISI Mark
(C) Hallmark
(D) Eco-mark

Answer: (C) Hallmark

Teacher's Note:
a) Hallmark certifies the purity of gold and silver jewellery.
b) Eco-mark is for environment-friendly products, not jewellery.

18. There are two Statements, Assertion (A) and Reason (R).
Assertion (A): Larger the lead time, larger is the quantity of material required to be stored and larger shall be the amount of working capital required.
Reason (R): If the raw material do not have a record of uninterrupted availability, higher stock levels may be required.
Choose the correct alternative from the alternatives given below: [1 Mark]
(A) Assertion (A) is false and Reason (R) is true.
(B) Both Assertion (A) and Reason (R) are false.
(C) Assertion (A) is true and Reason (R) is false.
(D) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Answer: (D) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Teacher's Note:
a) Lead time and availability of raw material are factors affecting working capital requirement.
b) Longer lead time or uncertain supply means more stock, so more working capital is needed.

19. There are two statements, Assertion (A) and Reason (R):
Assertion (A): Coordination ensures unity of action.
Reason (R): Coordination act as a binding force between departments and ensures that all action is aimed at achieving the goals of the organisation.
Choose the correct alternative from the alternatives given below: [1 Mark]
(A) Both 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 wrong.
(D) Assertion (A) is wrong, but Reason (R) is correct.

Answer: (A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Teacher's Note:
a) Coordination binds departments together, which is why it brings unity of action.
b) Check whether the Reason explains "why" the Assertion is true before choosing option (A).

20. 'The principles of management do not provide readymade solutions to all managerial problems as real business situations are very complex and dynamic and are a result of many factors.' This statement highlights which of the following features of principles of management: [1 Mark]
(A) General guidelines
(B) Flexible
(C) Contingent
(D) Mainly behavioural

Answer: (A) General guidelines

Teacher's Note:
a) Principles are general guidelines for action; they do not give readymade solutions.
b) "Contingent" means their application depends on the situation, which is a different feature.

21. (a) State any three points of importance of Financial Planning. [3 Marks]

Answer: Importance of Financial Planning (any three):
1. It helps in forecasting what may happen in future under different situations, so the company can face them in a better way.
2. It helps in avoiding business shocks and surprises and prepares the company for the future.
3. It helps in co-ordinating various business functions, like sales and production, by providing clear policies and procedures.

Teacher's Note:
a) Other valid points: reduces waste and duplication, links present with future, links investment and financing decisions.
b) Write exactly three points; listing only headings earns just half mark each.

OR

(b) State any three factors that affect the fixed capital requirements of a company. [3 Marks]

Answer: Factors affecting requirement of fixed capital (any three):
1. Nature of business: A trading concern needs lower investment in fixed assets than a manufacturing organisation.
2. Scale of operations: A large organisation operating at a higher scale needs more investment in fixed assets than a small one.
3. Choice of technique: A capital intensive organisation needs higher investment in plant and machinery than a labour intensive one.

Teacher's Note:
a) Other factors: technology upgradation, growth prospects, diversification, financing alternatives and level of collaboration.
b) Give the heading and a one-line reason for each factor to earn the full mark.

22. (a) Give the meaning of 'Directing' function of management. State any two features of Directing. [3 Marks]

Answer:
Meaning: Directing is the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve its objectives.
Features of Directing (any two):
1. Directing initiates action: Planning, organising, staffing and controlling only prepare a setting for action, while directing starts action in the organisation.
2. Directing takes place at every level of management: Every manager, from the top executive to the supervisor, performs the directing function.

Teacher's Note:
a) Meaning carries 1 mark; each feature carries 1 mark.
b) Other features: directing is a continuous process and it flows from top to bottom.

OR

(b) State any three 'Semantic Barriers' to communication. [3 Marks]

Answer: Semantic barriers to communication (any three):
1. Badly expressed message: The intended meaning is not conveyed because of inadequate vocabulary, wrong words or omission of needed words.
2. Symbols with different meanings: A word may have several meanings, and the receiver may pick a meaning different from what the sender intended.
3. Faulty translations: A message drafted in one language is not properly translated into the language understood by workers.

Teacher's Note:
a) Other semantic barriers: unclarified assumptions, technical jargon and body language and gesture decoding.
b) Semantic barriers relate to words and meanings; do not mix them with psychological or organisational barriers.

23. Madhwan was appointed as a Human Resource Manager in 'Health Grow Ltd.' six months back. As a Human Resource Manager, he has to perform many specialised activities and duties like analyzing jobs by collecting information about jobs and prepare job descriptions, training and development of employees etc.
State three other specialized activities that Madhwan must perform in addition to the above as a Human Resource Manager of Health Grow Ltd. [3 Marks]

Answer: Other specialised activities of a Human Resource Manager (any three):
1. Recruitment, i.e., searching for qualified people.
2. Developing compensation and incentive plans.
3. Maintaining labour relations and union-management relations.

Teacher's Note:
a) Do not repeat job analysis or training, as the question already mentions them.
b) Other valid duties: handling grievances, providing social security and welfare, and defending the company in law suits.

24. P. Madhav is the production manager of 'Trendy Style Pvt. Ltd.', a firm manufacturing office furniture. His objective is to increase production by 20% in the next one year. But the Sales Manager, R. Shetty does not approve of the increase in production, till changes are brought about in the quality of wood, locks, handles etc. to incorporate latest trends. This kind of conflict brings to light an important concept of management that can help to link the activities of various departments.
(i) Identify and explain the concept discussed above.
(ii) State any two points of importance of the concept identified in (i) above. [3 Marks]

Answer:
(i) The concept is Coordination. Coordination is the process by which a manager synchronises the activities of different departments towards the achievement of a common goal.
(ii) Importance of coordination (any two):
1. Growth in size: As an organisation grows and employs more people, coordination integrates their efforts and harmonises individual goals with organisational goals.
2. Functional differentiation: An organisation is divided into departments like finance and production, and coordination links the activities of these departments.

Teacher's Note:
a) Identification carries half mark and meaning half mark; each point of importance carries 1 mark.
b) Another valid point is specialisation: coordination reconciles differences among specialists.

25. (a) State any four points of importance of controlling function of management. [4 Marks]

Answer: Importance of controlling (any four):
1. Accomplishing organisational goals: Controlling measures progress, brings deviations to light and indicates corrective action.
2. Judging accuracy of standards: It verifies whether standards are accurate and objective, and revises them in the light of changes.
3. Making efficient use of resources: It reduces wastage and spoilage by ensuring every activity follows pre-determined standards.
4. Improving employee motivation: Employees know in advance what is expected of them and the standards on which they will be appraised.

Teacher's Note:
a) Other valid points: ensures order and discipline, and facilitates coordination in action.
b) Write a heading with a short explanation; headings alone get only half mark each.

OR

(b) State any four merits of external sources of recruitment. [4 Marks]

Answer: Merits of external sources of recruitment:
1. Qualified personnel: Management can attract qualified and trained people to apply for vacant jobs.
2. Wider choice: Management has a wider choice while selecting the right candidate.
3. Fresh talent: External sources bring fresh talent into the organisation.
4. Competitive spirit: External recruitment encourages a competitive spirit among the existing staff.

Teacher's Note:
a) Remember the four merits with the keywords: qualified people, wider choice, fresh talent, competitive spirit.
b) Do not write merits of internal sources such as improved morale or lower cost.

26. (a) Explain the following external sources of recruitment:
(i) Campus Recruitment
(ii) Recommendation of Employees [4 Marks]

Answer:
(i) Campus Recruitment:
1. Organisations maintain close liaison with educational institutions like universities, vocational schools and management institutes to recruit qualified personnel for various jobs.
2. It is a popular source of recruitment for technical, professional and managerial jobs.
(ii) Recommendation of Employees:
1. Applicants are introduced by present employees or their friends and relatives.
2. Such applicants are likely to be good employees because their background is known, and a preliminary screening takes place as present employees know both the company and the candidates.

Teacher's Note:
a) Each source carries 2 marks; give two clear points for each.
b) Mention "preliminary screening" for recommendations, as it is a key value point.

OR

(b) Explain the following non-financial incentives which motivate employees for higher performance :
(i) Employee recognition programmes
(ii) Status [4 Marks]

Answer:
(i) Employee recognition programmes:
1. It means acknowledging and appreciating the work of employees, for example by congratulating them or giving them awards.
2. When their work is appreciated, employees feel motivated to perform at a higher level.
(ii) Status:
1. Status means the ranking of positions in the organisation; the authority, responsibility, rewards and recognition of a job show the status of a person.
2. Status satisfies the psychological, social and esteem needs of an individual.

Teacher's Note:
a) Each incentive carries 2 marks: meaning plus how it motivates.
b) Link status to esteem needs; examiners look for this connection.

27. Ganesh Jain is the Marketing Manager at 'KL Foods Ltd'. He has a team of four employees working under him - Kavya, Ritesh, Pooja and Madhav. Kavya and Ritesh are temporary employees while Pooja and Madhav's job is permanent. All four of them have been working hard and consistently met all targets. Ganesh Jain wanted to reward them for their good performance. He understood that in all human beings, there exists a hierarchy of needs. So, he identified the need level of each of the employees to provide motivation to them.
Kavya and Ritesh were made permanent in the job with a good pension plan while Pooja and Madhav were given an autonomy status.
(i) Identify and state the need of employees recognized by Ganesh Jain in the above case.
(ii) State any two assumptions on which Maslow's Need Hierarchy Theory is based on. [4 Marks]

Answer:
(i) Needs recognised by Ganesh Jain:
1. Kavya and Ritesh - Safety and Security Needs: These needs provide security and protection from physical and emotional harm, for example job security and pension.
2. Pooja and Madhav - Esteem Needs: These needs refer to self-respect, autonomy, status, recognition and attention.
(ii) Assumptions of Maslow's Need Hierarchy Theory (any two):
1. People's behaviour is based on their needs, and satisfaction of these needs influences their behaviour.
2. People's needs are in a hierarchical order, starting from basic needs to higher level needs.

Teacher's Note:
a) Permanent job and pension indicate safety needs; autonomy and status indicate esteem needs.
b) Other assumptions: a satisfied need no longer motivates, and a person moves up only when the lower need is satisfied.

28. 'Tech Work' an Artificial Intelligence (AI) startup started in 2024. It was earning good profits. It wanted to expand its business and for its research and development, it required Rs. 100 crores.
The Chief Executive Officer of 'Tech Work' consulted the Finance Manager who suggested that there is a market which facilitates transfer of investible funds from savers to entrepreneurs seeking to establish new enterprises or expand existing ones through the issue of securities.
The management of 'Tech Work' decided to raise funds from the investors by issuing equity shares Rs. 200 per share for the first time.
(i) Name the type of capital market through which 'Tech Work' decided to raise funds for its expansion.
(ii) State three features of the market identified in (i) above. [4 Marks]

Answer:
(i) Primary Market (New Issue Market).
(ii) Features of the primary market (any three):
1. It deals with new securities issued by new companies, or fresh issues by existing companies, to investors.
2. Securities are sold by the company to investors directly or through an intermediary.
3. Funds flow from savers to the company, so the primary market directly promotes capital formation.

Teacher's Note:
a) "Issuing shares for the first time" is the clue that points to the primary market.
b) Other features: only buying of securities takes place, prices are decided by management, and there is no fixed geographical location.

29. VK Ltd. is a fast moving consumer goods company. It has shareholders spread all over India. Most of its shareholders depend upon a regular income from their investment.
VK Ltd. has been earning consistent profits. The management of the company keeps in mind the preference of the shareholders regarding payment of dividend. Since its shareholders, in general, desire that at least a certain amount is paid as dividend to them every year, the company declares dividend every year.
Atul, the Finance Manager of the company identified promising growth opportunities. He suggested to the Chief Executive Officer to retain the earnings to finance the required investments instead of declaring dividend every year. For this, the Chief Executive Officer decided to call a General Body Meeting of the shareholders.
(i) Identify two factors affecting dividend decision discussed above.
(ii) State two other factors that affect the dividend decision of a company. [4 Marks]

Answer:
(i) Factors affecting dividend decision discussed in the case:
1. Shareholders' Preference
2. Growth Opportunities
(ii) Other factors affecting dividend decision (any two):
1. Amount of earnings: Dividends are paid out of current and past earnings, so higher earnings allow higher dividends.
2. Cash flow position: Enough cash must be available in the company to declare a dividend.

Teacher's Note:
a) Part (i) carries half mark each; part (ii) carries one and a half marks each, so explain each factor briefly.
b) Other factors: stability of earnings and dividends, taxation policy, stock market reaction, access to capital market, legal and contractual constraints.

30. Abha had guests at home. She ordered vegetable, biryani from 'Biryani House'. The biryani came in a beautiful packaging and Abha opened it with lot of excitement. However, when she started serving biryani to the guests, she realised that it was non-vegetarian. She checked the package and noticed that there was no indication whether it was a vegetarian or non-vegetarian biryani. She contacted 'Biryani House' for the same. The manager at 'Biryani House' apologized and immediately sent a vegetarian biryani along with complimentary sweet dish.
Identify and explain the two consumer rights discussed in the above case. [4 Marks]

Answer:
(a) Right to be informed:
1. The consumer has a right to complete information about the product, such as ingredients, date of manufacture, price and quantity.
2. For this reason, the law in India requires manufacturers to give such information on the package and label of the product.
(b) Right to seek redressal:
1. The consumer has a right to get relief if the product or service falls short of expectations.
2. The Consumer Protection Act provides relief such as replacement of the product, removal of defect, or compensation for any loss or injury.

Teacher's Note:
a) "No indication whether vegetarian or non-vegetarian" shows the right to be informed; "immediately sent a vegetarian biryani" shows the right to seek redressal.
b) The marking scheme also gives full credit for "Right to be Heard" with a correct explanation in place of Right to seek redressal.

31. (a) Explain the following techniques of scientific management:
(i) Time Study
(ii) Motion Study
(iii) Fatigue Study [6 Marks]

Answer:
(i) Time Study:
1. It determines the standard time taken by a worker of reasonable skill and efficiency to perform a well-defined job.
2. It helps in deciding the number of workers to be employed, framing suitable incentive schemes and determining labour costs.
(ii) Motion Study:
1. It is the study of movements made while doing a well-defined job; movements may be productive, incidental or unproductive.
2. It seeks to eliminate unnecessary and wasteful movements so that the job is completed efficiently in less time.
(iii) Fatigue Study:
1. It determines the amount and frequency of rest intervals needed in completing a task.
2. Rest intervals help workers regain stamina and work again with the same capacity, which increases productivity.

Teacher's Note:
a) Each technique carries 2 marks: give its meaning and its purpose.
b) Remember: time study sets standard time, motion study removes wasteful movements, fatigue study plans rest intervals.

OR

(b) Explain any three features of management. [6 Marks]

Answer: Features of management (any three):
1. Management is a goal-oriented process: Every organisation has basic goals, and management unites the efforts of different individuals to achieve these goals.
2. Management is all pervasive: Management activities are common to all organisations, whether economic, social or political, and in every country.
3. Management is a continuous process: It is a series of continuing functions (planning, organising, staffing, directing and controlling) performed by all managers all the time.

Teacher's Note:
a) Each feature carries half mark for the heading and one and a half marks for the explanation.
b) Other features: multi-dimensional, group activity, dynamic function and intangible force.

32. (a) Explain the following limitations of 'Planning' function of management:
(i) Planning may not work in dynamic environment.
(ii) Planning reduces creativity.
(iii) Planning does not guarantee success. [6 Marks]

Answer:
(i) Planning may not work in a dynamic environment:
1. The business environment keeps changing, so the organisation must constantly change its plans.
2. It is difficult to assess future trends accurately when economic policies change, political conditions are unstable or there is a natural calamity.
(ii) Planning reduces creativity:
1. Planning is done by top management; middle management and other decision makers can neither deviate from plans nor act on their own.
2. As a result, their initiative and creativity get lost or reduced.
(iii) Planning does not guarantee success:
1. A plan must be put into action, or it is meaningless; also, a plan that worked before may not work again.
2. The false sense of security created by planning may actually lead to failure instead of success.

Teacher's Note:
a) Each limitation carries 2 marks; give two clear points for each.
b) Use keywords like "dynamic environment", "initiative lost" and "false sense of security".

OR

(b) Give the meaning of 'Single-use-plans' and 'Standing-plans'. Explain 'Strategy' and 'Policy' as types of plans. [6 Marks]

Answer:
Single-use plans: These are developed for a one-time event or project. The course of action is not likely to be repeated, so they are for non-recurring situations. Examples are budgets and programmes.
Standing plans: These are used for activities that occur regularly over a period of time. They ensure that internal operations run smoothly. Examples are policies, procedures, methods and rules.
Strategy:
1. A strategy refers to future decisions defining the organisation's direction and scope in the long run.
2. It is a comprehensive plan that involves setting long-term objectives, adopting a course of action and allocating the necessary resources.
3. The business environment must be considered whenever a strategy is formulated.
Policy:
1. A policy is a general statement that guides thinking and channelises energies in a particular direction; it brings uniformity in decision making.
2. It defines the broad parameters within which a manager may function.
3. A manager may use his discretion to interpret and apply a policy.

Teacher's Note:
a) Each of the four parts carries one and a half marks.
b) Give examples for single-use plans (budgets, programmes) and standing plans (policies, rules) to secure the marks.

33. Royal Glaze Ltd. continues to maintain its position as one of the largest consumer goods companies in the world. Its organisational structure is designed to facilitate the achievement of its objectives in alignment with its vision statement. The company maintains two distinct product divisions in its organisational structure 'Foods' and 'Home Care'.
Looking ahead, the company is focusing on embracing changes so that it can continue to be the market leader. As part of its expansion plans, it is planning to venture into the electronics segment in the near future.
(i) Identify the organisational structure of 'Royal Glaze Ltd.
(ii) Draw the organisational structure chart of Royal Glaze Ltd considering its future plans to enter into Electronics segment
(iii) State any three advantages of the type of organisational structure drawn in (ii) above. [6 Marks]

Answer:
(i) Divisional Structure.
(ii) Chart of the divisional structure: At the top is the Chief Executive Officer (Top Management). Below the CEO are three divisions: Foods Division, Home Care Division and Electronics Division. Each division has its own functional departments, such as Production, Marketing, Finance and Human Resources.
(iii) Advantages of divisional structure (any three):
1. Product specialisation develops varied skills in a divisional head and prepares him for higher positions.
2. Responsibility can be fixed for poor performance of a division, because divisional heads are accountable for profits.
3. It facilitates expansion and growth, as new divisions (like Electronics) can be added without disturbing existing operations.

Teacher's Note:
a) Marks: identification 1, chart 2, three advantages 3; the chart must show the new Electronics division.
b) Another advantage is flexibility and initiative, since each division works as an autonomous unit and decides faster.

34. DG Ltd, an E-plane car company has developed a revolutionary flying car for passenger mobility. This hybrid flying car can accommodate upto two persons and features innovative wing like doors for comfortable entry. The seats are designed for utmost comfort, crafted from high quality materials.
The distinguishing feature of this flying car is that its production will be in India and it will utilise biofuel alongside electricity, ensuring a sustainable mode of transportation.
DG Ltd. has obtained the first testing approval for its category. Priced at 2.5 crores, the company has to take decisions in respect of discounts to customers, credit terms etc., so that the customers perceive the price to he in line with the value of the product.
To make the flying car available to the target customers, DG Ltd. is in the process of selecting dealers or intermediaries to reach the customers, providing support to the intermediaries etc.
To communicate the availability, features, merits etc. of the product to the target customers and persuade them to buy the flying car. DG Ltd. decided to go in for digital marketing campaigns, press releases and demos conducted by influencers and journalists.
The above case describes the combination of elements used by DG Ltd. to prepare its market offering.
Quoting lines from the above para, identify and explain the elements. [6 Marks]

Answer: The elements of the marketing mix used by DG Ltd. are:
(i) Product / Product Mix:
Line: "This hybrid flying car can accommodate upto two persons and features innovative wing like doors for comfortable entry. The seats are designed for utmost comfort, crafted from high quality materials."
Explanation: Product means goods, services or anything of value offered to the market for sale. It covers decisions on planning, designing and developing the right products, including branding, labelling and packaging.
(ii) Price / Price Mix:
Line: "Priced at 2.5 crores, the company has to take decisions in respect of discounts to customers, credit terms etc., so that the customers perceive the price to be in line with the value of the product."
Explanation: Price is the amount of money customers pay to obtain the product. It involves decisions on the basic price, discounts to customers and traders, credit terms etc.
(iii) Place / Physical Distribution:
Line: "To make the flying car available to the target customers, DG Ltd. is in the process of selecting dealers or intermediaries to reach the customers, providing support to the intermediaries etc."
Explanation: Place includes activities that make the product available to target customers, such as choosing channels of distribution, supporting intermediaries, managing inventory, warehousing and transportation.
(iv) Promotion / Promotion Mix:
Line: "To communicate the availability, features, merits etc. of the product to the target customers and persuade them to buy the flying car. DG Ltd. decided to go in for digital marketing campaigns, press releases and demos conducted by influencers and journalists."
Explanation: Promotion means communicating the availability, features and merits of products to target customers and persuading them to buy. It uses tools like advertising, personal selling and sales promotion.

Teacher's Note:
a) Each element carries one and a half marks: half for naming, half for quoting the line and half for the explanation.
b) For Product, the line "its production will be in India and it will utilise biofuel alongside electricity" is also accepted.
c) Remember the 4 Ps: Product, Price, Place and Promotion.

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