ISC Class 12 Business Studies Board Exam Question Paper 2011 with Solutions

ICSE Class 12 Business Studies Board Exam Question Paper with Solutions

Part-I

Question 1.
Answer briefly each of the questions (i) to (xv): [30 Marks]

(i) Define recruitment. [2 Marks]

Answer:
Recruitment is the process of identification of sources of human forces and motivating them to apply for jobs in the organisation. It is a process to discover the sources of manpower to meet the requirements of the staffing schedule and helps in faster selection of an efficient workforce.

Teacher's Note:
a) Ensure you mention that recruitment involves both finding potential candidates and motivating them to apply.
b) Do not confuse recruitment with selection; recruitment is positive as it invites more candidates, while selection is negative as it eliminates unsuitable ones.

(ii) Give two points of distinction between training and development. [2 Marks]

Answer:

Teacher's Note:
a) Tabular format is best for distinction questions to secure full marks.
b) Remember that training is imparted to operatives, whereas development is generally aimed at managerial personnel.

(iii) What is the effect of high morale of staff on productivity ? [2 Marks]

Answer:
High morale leads to ardent zeal among the workers for good accomplishment. High morale impels employees to make joint efforts fully with the management for achieving organisational aims and is widely considered the key to higher productivity.

Teacher's Note:
a) Connect morale directly to employee willingness and enthusiasm to cooperate with management.
b) Avoid writing vague answers; specify that high morale results in reduced absenteeism, lower labour turnover, and increased output.

(iv) Money is not the only motivator for staff. Justify this statement. [2 Marks]

Answer:
While money plays an important role in motivation, it fails to satisfy needs of a higher level like esteem and self-actualization. Employees also work for recognition, freedom, status, job satisfaction, stability of employment, opportunity for promotion, participation in management, and post-retirement benefits.

Teacher's Note:
a) Link this concept to Maslow's Need Hierarchy Theory where financial incentives satisfy lower-level physiological and safety needs.
b) Always mention non-financial incentives such as status, job enrichment, and recognition.

(v) Explain two limitations of performance appraisal. [2 Marks]

Answer:
1. Inexperience of evaluator: The evaluator might not be trained and experienced enough to make a right judgment of job performance.
2. Opposition from trade unions: Trade unions may oppose performance appraisal on the ground that it entails subjective discrimination among members.

Teacher's Note:
a) Highlight that subjectivity and bias (such as the halo effect) are major limitations in performance appraisal.
b) Clearly state both evaluator error and stakeholder resistance as key points.

(vi) What is meant by closed system of promotion ? [2 Marks]

Answer:
A closed system of promotion restricts promotional opportunities exclusively to internal candidates currently employed within the organisation, without inviting applications from external sources.

Teacher's Note:
a) Note that the official key contained an erroneous excerpt regarding hotel sales and retrenchment; the correct definition refers strictly to internal-only promotion policies.
b) Students must understand that closed systems boost employee morale but may lead to inbreeding of ideas.

(vii) Give two points of distinction between retrenchment and layoff. [2 Marks]

Answer:
1. Definition and Permanence: Retrenchment means the permanent termination of service of a workman for reasons other than disciplinary action (such as redundancy or VRS). Layoff is a temporary inability or refusal of an employer to provide employment due to shortage of raw material, coal, power, or breakdown of machinery.
2. Recall of Workers: In layoff, employees are expected to return once normal conditions are restored, whereas in retrenchment, the employment relationship is permanently severed subject to statutory compensation.

Teacher's Note:
a) Emphasize the temporary nature of layoff versus the permanent nature of retrenchment.
b) Mention specific causes like power failure or raw material shortage for layoff.

(viii) Why is communication called a two way process ? [2 Marks]

Answer:
Communication is called a two-way process because it involves both the transmission of a message by the sender and the reception, understanding, and feedback by the receiver. Without feedback from the listener, the communication cycle remains incomplete.

Teacher's Note:
a) Avoid bringing in unrelated physics laws; focus strictly on the sender-receiver-feedback loop.
b) Emphasize that feedback is the critical component that transforms one-way transmission into a two-way process.

(ix) Explain how attitude and opinion act as a barrier to effective communication. [2 Marks]

Answer:
Attitude and opinion act as psychological barriers to effective communication. Prejudices, preconceived notions, and rigid mental positions predispose individuals to act or not act in a certain way, preventing them from listening objectively to what is being said.

Teacher's Note:
a) Categorize this correctly under psychological or emotional barriers in communication.
b) Note that closed-mindedness prevents receivers from grasping the actual intent of the sender.

(x) What is a letter of enquiry ? Give the name of the letter that is received in its response. [2 Marks]

Answer:
A letter of enquiry is a business letter written by a prospective buyer to a seller to obtain information regarding the price, quality, terms, and availability of goods or services. The letter received in response is called a quotation or reply to enquiry.

Teacher's Note:
a) Clearly distinguish between the enquiry and the response.
b) Ensure the technical term 'quotation' or 'reply' is stated clearly.

(xi) Give two advantages of having an 'Appendix' in a report. [2 Marks]

Answer:
1. It contains supplementary statistical data, tables, graphs, lists of persons, or witness statements.
2. It helps to explain and support the main contents, arguments, and findings of the report without cluttering the body text.

Teacher's Note:
a) Explain that appendices house bulky or detailed reference materials.
b) Mention that it keeps the main body of the report concise and readable.

(xii) State any two prerequisites for passing a special resolution in a meeting. [2 Marks]

Answer:
1. A notice of the general meeting must be given specifying the intention to propose the resolution as a special resolution.
2. The votes cast in favour of the resolution must not be less than three times (75%) the votes cast against it.

Teacher's Note:
a) Note that the official key had a typographical error regarding worker notices; the core legal requirement is the 75 percent majority vote and proper notice.
b) Mention that the notice period for a general meeting is generally not less than 21 days.

(xiii) What is a motion in the context of meetings ? When can it become a counter motion ? [2 Marks]

Answer:
A motion is a formal proposal or proposition raised at a meeting and submitted for consideration, debate, vote, and decision. An amendment or proposal that is moved to entirely replace or oppose the original motion without completely changing its core subject can act as a counter motion.

Teacher's Note:
a) Define motion clearly as a resolution under discussion.
b) Differentiate between an ordinary amendment and a counter motion.

(xiv) What are Phonograms ? [2 Marks]

Answer:
Phonograms are written symbols or combinations of letters (such as graphemes) that represent a particular sound or speech sound in phonetics and language study.

Teacher's Note:
a) Note that the official key contained an OCR corruption regarding child carmaster; phonograms relate strictly to linguistic sound-spelling patterns.
b) Keep the definition concise and focused on sound-symbol correspondence.

(xv) With reference to monthly remuneration of staff, write the expanded form of:
(a) CCA
(b) DA [2 Marks]

Answer:
(a) CCA - City Compensatory Allowance
(b) DA - Dearness Allowance

Teacher's Note:
a) Both expansions must be accurate to secure full marks.
b) These allowances form standard components of employee salary structures in enterprises and public service.

Part-II

Question 2.
(i) Explain any four important steps that may be adopted by an organization in its staff selection procedure. [8 Marks]

Answer:
Four important steps in the staff selection procedure are:
1. Preliminary Interview: This is usually brief and helps in eliminating totally unsuitable candidates at the outset. It saves the organisation time and cost in processing unqualified applicants through subsequent rigorous steps.
2. Receiving Applications: Candidates who pass the preliminary interview are required to fill out a formal application form. This provides a written record of the candidate's qualifications, experience, and personal background.
3. Employment Tests: Various tests such as intelligence tests, aptitude tests, trade tests, and personality tests are conducted to measure the candidate's ability, skill level, and psychological suitability for the job.
4. Reference and Background Check: The persons named as referees by the candidate are contacted for cross-checking character, behavior, and past record. Background checks ensure the reliability and integrity of the prospective employee.

Teacher's Note:
a) Selection is a sequential process; steps must be written in logical chronological order.
b) Clearly explain the purpose of each step in the hiring pipeline.

(ii) Write a note on advertisement as a source of recruitment. [6 Marks]

Answer:
Advertisement is a popular and effective external source of recruitment. Its key aspects include:
1. Mass Reach: Through newspapers, journals, and electronic media, job information reaches a vast number of potential candidates across wide geographical areas.
2. Wide Choice: Advertising attracts a large pool of applicants with diverse qualifications and skills, enabling the organisation to select the most suitable candidates.
3. Detailed Information: Advertisements can provide comprehensive details regarding job requirements, qualifications, emoluments, and the organisation, ensuring that only eligible candidates apply.
4. Economy: Although advertising involves cost, its cost per applicant is relatively low considering the massive reach and exposure it provides.

Teacher's Note:
a) Categorize advertisement correctly as an external source of recruitment.
b) Highlight both advantages like wide reach and limitations like attracting unqualified applicants.

Question 3.
(a) Explain any four types of staff training. [8 Marks]

Answer:
Four types of staff training are:
1. Induction or Orientation Training: Designed to help a new employee adapt to the new work environment. It involves familiarising them with company policies, rules, job requirements, and introduction to colleagues to build confidence.
2. Apprenticeship Training: A system where a trainee or junior worker is placed under the guidance of an experienced master craftsman or senior worker to learn skilled trades and crafts through observation and practice.
3. Vestibule Training: Training conducted away from the actual workplace in a separate classroom or workshop that simulates exact working conditions using similar machines. This helps trainees overcome initial nervousness before handling live operations.
4. Refresher Training: Designed for existing staff to update their knowledge and technical skills in line with modern technological advancements and changing job requirements.

Teacher's Note:
a) Distinguish clearly between on-the-job and off-the-job training categories.
b) Ensure accurate descriptions for vestibule and apprenticeship training.

(b) 'Post-training activities are an important part of a training programme'. Explain post training activities. Why are they important ? [6 Marks]

Answer:
Post-training activities refer to the follow-up evaluation and actions undertaken after a training programme concludes. They include performance tryouts, action plan presentations, and continuous follow-up.
Importance of post-training activities:
1. Evaluation of Effectiveness: They help measure whether the objectives of the training programme have been successfully achieved and whether the trainees have acquired the desired skills.
2. Rectification of Mistakes: Feedback through follow-ups allows supervisors to correct trainee errors and ensure correct execution on the job.
3. Improved Future Planning: Assessment data helps management design better and more refined training programmes for future batches.

Teacher's Note:
a) Emphasize that training is incomplete without evaluation and follow-up.
b) Connect post-training evaluation directly to return on investment (ROI) in human resources.

Question 4.
(a) What is meant by staff transfer in an organisation ? Explain any three types of staff transfers. [8 Marks]

Answer:
Staff transfer is the shifting of an employee from one job to another, one department to another, or one plant to another, without any significant change in status, responsibilities, or pay. Three types of staff transfers are:
1. Production Transfer: Arises when there is a shortage of workers in one plant or department and a surplus in another. Workers are transferred from overstaffed units to understaffed units to prevent layoffs and balance the workforce.
2. Replacement Transfer: Occurs when a long-service employee is transferred to another department to replace a newly joined or shorter-service employee, often to retain senior staff during heavy workloads.
3. Versatility Transfer: Designed to train employees in multiple jobs so they develop all-round proficiency, preparing them for both production and replacement transfers as operational needs demand.

Teacher's Note:
a) Define transfer clearly as lateral movement without major changes in salary or status.
b) Differentiate transfer from promotion and demotion.

(b) Performance appraisal of an employee can be conducted by his immediate superior. Give three advantages of conducting this type of performance appraisal. [6 Marks]

Answer:
Three advantages of appraisal by an immediate superior are:
1. Accurate Knowledge: The immediate superior works closely with the employee on a daily basis and has firsthand knowledge of their actual job performance, strengths, and weaknesses.
2. Effective Guidance: Because the superior observes the employee constantly, they can provide timely feedback, constructive criticism, and effective guidance for skill improvement.
3. Basis for Promotion and Rewards: Superior evaluations form a reliable and detailed basis for making administrative decisions regarding promotions, salary increments, and transfers.

Teacher's Note:
a) Highlight that superiors are in the best position to evaluate day-to-day output.
b) Mention that despite potential bias, supervisor appraisal remains the most common and practical method.

Question 5.
(a) Write short notes on :
(i) Dictaphone
(ii) Telefax
(iii) Public address system. [12 Marks]

Answer:
(i) Dictaphone: A dictating machine used by executives to record oral dictation. The uttered words are captured on a recording medium (such as a magnetic belt or wax disc) and later transcribed by a typist or stenographer into written correspondence.
(ii) Telefax: A telecommunication device used for transmitting exact copies of documents, drawings, sketches, and diagrams over telephone lines from one place to another at high speed.
(iii) Public Address System: An electronic sound amplification and distribution system comprising microphones, amplifiers, and loudspeakers. It is commonly installed in railway stations, airports, and large factories to broadcast announcements and instructions simultaneously to large gatherings or staff.

Teacher's Note:
a) Provide clear, distinct headings for each sub-note.
b) Focus on the office utility and functional purpose of each communication device.

(b) What are cellular phones ? Mention two basic services provided by cellular phones : [2 Marks]

Answer:
Cellular phones are portable wireless communication devices that connect to a cellular network via radio waves, enabling voice and data communication while on the move. Two basic services provided are:
1. Making outgoing voice calls from any location within network coverage.
2. Receiving incoming voice calls directly at any place.

Teacher's Note:
a) Keep the definition modern and precise.
b) State both originating and receiving call capabilities clearly.

Question 6.
(a) Discuss the advantages of written communication. [8 Marks]

Answer:
The advantages of written communication are:
1. Permanent Record: It provides a permanent documented record of messages, agreements, and policies that can be stored and referenced easily in the future.
2. Legal Evidence: Written documents carry official weight and can be produced and cited as legal evidence in case of disputes or controversies.
3. Clarity and Precision: Writing forces the sender to structure thoughts carefully, reducing ambiguity and ensuring clarity of the message.
4. Wide Transmission: A written document or circular can be transmitted simultaneously to numerous persons across different departments or branches.

Teacher's Note:
a) Contrast written communication with oral communication by emphasizing permanence and legal validity.
b) List at least four well-explained points for full credit.

(b) Explain the following with the help of examples :
(i) Routine and Special Reports.
(ii) Informational and Interpretative Reports. [6 Marks]

Answer:
(i) Routine and Special Reports:
- Routine Reports: Prepared and submitted periodically on regular operational matters to help management manage daily affairs (e.g., monthly sales report or weekly attendance report).
- Special Reports: Prepared and submitted on specific, non-recurring matters requiring investigation (e.g., a detailed report requested by the factory manager regarding a machinery accident in the plant).
(ii) Informational and Interpretative Reports:
- Informational Report: Presents collected data and facts in an organized format without offering analysis or recommendations (e.g., a branch report showing only year-end deposit and advance figures).
- Interpretative Report: Contains both factual data and critical interpretation, analysis, conclusions, and recommendations for action (e.g., the above deposit report extended to include causes for declining deposits and suggestions for improvement).

Teacher's Note:
a) Ensure examples are provided for each category of report.
b) Clearly distinguish between purely factual reporting and analytical interpretation.

Question 7.
(a) Explain four important powers and four important duties of a Chairman presiding over a meeting. [8 Marks]

Answer:
Four Powers of a Chairman:
1. To conduct the proceedings of the meeting strictly in accordance with company rules, articles, and agenda.
2. To decide on the priority of speakers who wish to address the meeting.
3. To maintain order and expel unruly or disruptive members if necessary.
4. To give final rulings on points of order raised regarding meeting procedures.
Four Duties of a Chairman:
1. To ensure that the meeting is properly convened, summoned, and constituted in the right manner.
2. To ensure that all items on the agenda are discussed and business is conducted in an orderly fashion.
3. To ensure that the statutory provisions of the Companies Act and Articles of Association are strictly followed.
4. To ensure that a fair poll or voting process is conducted and results are declared impartially.

Teacher's Note:
a) Clearly segregate powers from duties.
b) Emphasize that the chairman's ruling on procedural points is final.

(b) With reference to a Statutory Meeting, answer the following questions :
(i) When can it be called ?
(ii) Why is it called ?
(iii) What is the frequency of this meeting ?
(iv) List any two contents of statutory report.
(v) Name the two types of companies that need not hold such a meeting.
(vi) Name the two types of companies that 'must' hold such a meeting, as per the Indian Companies Act 1956. [6 Marks]

Answer:
(i) It must be called at least one month after, but within six months from, the date on which the company is entitled to commence business.
(ii) It is called to provide shareholders with essential information regarding the floatation and initial progress of the company.
(iii) It is held only once in the lifetime of a public company.
(iv) Two contents of the statutory report are: (1) Total number of shares allotted and cash received thereon, and (2) Abstract of receipts and payments.
(v) Two types of companies that need not hold a statutory meeting are: (1) Private companies, and (2) Companies limited by guarantee and not having a share capital.
(vi) Two types of companies that must hold a statutory meeting are: (1) Public limited companies limited by shares, and (2) Public limited companies limited by guarantee and having a share capital.

Teacher's Note:
a) Address each sub-question (i) to (vi) distinctly.
b) Remember that private companies are exempt from holding statutory meetings.

Question 8.
(a) Draft a letter of appointment for a school teacher offering her the job of an English teacher in a primary school. [8 Marks]

Answer:

144 AJC Bose Road
Kolkata - 700014
24th April 2011

To,
Mrs. Jones
166/A Rafi Ahmed Kidwai Road
Kolkata - 700016

Dear Madam,

Re: Appointment for the post of English Teacher.

With reference to your interview held on 23rd March 2011 at the Principal's office, we are pleased to offer you the appointment as an English Teacher in our primary school on a probation period of one year. Your initial basic pay scale and allowances will be communicated upon signing the acceptance copy.
Please sign and return the duplicate copy of this letter in token of your acceptance by 30th April 2011. We welcome you to our institution and look forward to your joining us.

Yours faithfully,

Alisa Mitra
(Principal)

Teacher's Note:
a) Ensure all standard components of a formal business letter (sender's address, date, recipient, subject, salutation, body, and complimentary close) are present.
b) Correct minor OCR typos from the original question paper text (such as Jqnes and Kidwai Load) to standard professional names.

(b) What are the advantages of a centralized mailing department in an organization ? [6 Marks]

Answer:
Four advantages of a centralized mailing department are:
1. High Degree of Specialization: Specialization ensures greater precision, speed, and efficiency in handling incoming and outgoing correspondence.
2. Uniformity in Standards: It maintains consistency in the quality of correspondence, layout, and adherence to postal procedures across the organisation.
3. Economy in Time and Cost: Bulk handling of mail, postage stamping, and combined dispatch result in substantial savings in postage, stationery, and operational time.
4. Prevention of Duplication: All correspondence work is handled under one roof, preventing duplication of effort across different departments.

Teacher's Note:
a) Clearly highlight cost-efficiency and specialization as primary benefits of centralization.
b) Mention that mechanization (folding, sealing, and franking machines) becomes economically viable in a centralized setup.