ISC Class 12 Business Studies Board Exam Question Paper 2012 with Solutions

ISC Class 12 Business Studies Board Exam Question Paper with Solutions 2012

Part - I

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

(i) Recruitment and selection are interdependent. Both are meaningless without each other. Explain. [2 Marks]

Answer:
Recruitment is the first stage which attracts a large number of candidates so that the second stage, i.e., selection, can be done in a proper manner. Both recruitment and selection are interdependent and are meaningless without each other.

Teacher's Note:
a) Recruitment acts as a positive process seeking to attract prospective employees, whereas selection is a negative process of elimination.
b) Ensure you explain that recruitment provides the pool of candidates from which selection picks the right talent.

(ii) Why are employees kept on probation, even when they have successfully cleared the selection procedure? [2 Marks]

Answer:
Selection tests are just a sample of behavior of the candidate. No selection procedure is foolproof and the best way to judge the candidate is when he is actually placed on the job. This is the reason why employees are kept on probation.

Teacher's Note:
a) Probation gives management a practical evaluation period to observe actual performance and conduct.
b) Highlight that theoretical selection methods cannot fully predict real-time work adjustment.

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

Answer:

Teacher's Note:
a) Always present distinctions in a tabular format for clarity.
b) Remember that training is job-oriented while development is career-oriented.

(iv) State and explain any one factor that can either act as a morale depressant or a booster, depending on how it is used. [2 Marks]

Answer:
Nature of work: Meaningful and satisfying job helps to improve employee morale. On the other hand, morale tends to be low when the job provides no challenge, no satisfaction, and job standards are considered very high.

Teacher's Note:
a) Mention that factors like working conditions or supervision can also serve as examples.
b) Clearly state both the positive (booster) and negative (depressant) aspects.

(v) Explain the significance of pay slip. [2 Marks]

Answer:
Composition of wages is somewhat complicated, so employees require a pay slip showing full details of total wages, deductions made, and the net wages paid.

Teacher's Note:
a) A pay slip acts as legal proof of employment and earnings.
b) It ensures transparency between the employer and employee regarding deductions like provident fund or taxes.

(vi) Why is money regarded as the biggest motivator of employees? [2 Marks]

Answer:
Money plays an important role in motivation. It is a means to satisfy physiological and safety needs. It is also used in satisfying social needs as it is considered a symbol of power, prestige, and status. It determines the standard of living of the person and gives him self-confidence.

Teacher's Note:
a) Relate money to Maslow's hierarchy of needs, specifically basic survival and security.
b) Point out that money serves as both an economic resource and a psychological status symbol.

(vii) 'Democratic leadership is ideal for white collar workers.' Justify the statement. [2 Marks]

Answer:
Democratic leadership is ideal for white collar workers as under this type of leadership, decisions are jointly made by the leader as well as his followers. The leader decentralizes authority and allows the group to share his power. The followers take an active participation under this leadership.

Teacher's Note:
a) White collar workers are generally educated, skilled, and professionally competent.
b) They prefer involvement in decision-making rather than autocratic control.

(viii) Mention any two situations under which circulars would be used as means of office communication. [2 Marks]

Answer:
When the same message has to be given to a large number of employees. For example: Admission, retirement, or death of a partner, or changes in office timings.

Teacher's Note:
a) Circulars are cost-effective for broadcasting identical information across departments.
b) Ensure examples given reflect internal organizational announcements.

(ix) Explain any two advantages of using Electronic mail communication. [2 Marks]

Answer:
1. It is the fastest method of transmitting written messages.
2. The messages sent through e-mail can be sorted, amended, and sent elsewhere easily.

Teacher's Note:
a) Highlight speed and cost-effectiveness as key advantages of email.
b) Mention that digital archiving is much simpler than physical filing.

(x) What is P.S. in the context of business letters? Explain whether it is advisable to use it or not. [2 Marks]

Answer:
P.S. means postscript. When the writer forgets to include something important in the body of the letter, he can add the message as P.S. However, writing a postscript is not a good practice and should preferably be avoided in a good business letter.

Teacher's Note:
a) Explain that a postscript indicates careless planning and lack of drafting care.
b) Essential information must always be integrated within the body of the letter.

(xi) What is meant by cross-reference in a report? State its importance in a good report. [2 Marks]

Answer:
Cross-referencing means making a mention at one place in the report about some other point of the report. Cross-referencing helps to save time and space and facilitates the task of the persons who are to read and use the report.

Teacher's Note:
a) It prevents repetition of data across multiple sections.
b) It improves readability and navigation within lengthy administrative reports.

(xii) Distinguish between proceedings and ruling in the context of company meetings. [2 Marks]

Answer:
The discussion and other events which take place in a meeting are known as proceedings. On the other hand, the judgment given by the chairman of the meeting on any controversial point is known as ruling.

Teacher's Note:
a) Proceedings refer to the entire record of business transacted.
b) A ruling is binding and given by the chair to maintain order or interpret rules.

(xiii) What are special tables? Why are they also called derivative tables? [2 Marks]

Answer:
Special purpose tables are known as special tables. They provide information for a particular discussion. These tables are called derivative tables because these are often derived from general tables.

Teacher's Note:
a) General tables present original data, whereas derivative tables present calculated metrics like percentages or averages.
b) They are tailored for specific analytical needs or reports.

(xiv) What is date stamping of incoming mails? State the purpose of using it. [2 Marks]

Answer:
All incoming letters are stamped with the date of receipt and are numbered. It can be done by hand or machine. Date stamping helps us to know the date when the mail was received and fixes accountability for processing.

Teacher's Note:
a) It prevents delays and disputes regarding when a communication arrived.
b) Essential for tracking prompt replies to business queries.

(xv) With reference to telephone services, write the expanded forms of:
(a) S.T.D.
(b) P.C.O. [2 Marks]

Answer:
(a) S.T.D. - Subscriber's Trunk Dialling.
(b) P.C.O. - Public Call Office.

Teacher's Note:
a) Ensure exact spelling for acronym expansions.
b) These terms relate to traditional telephony infrastructure still relevant in commercial terminology.

Part - II
(Answer any five questions)

Question 2.
(a) Psychological tests help to predict how successful a candidate could be on the job.' Explain any three types of tests that would help the management judge the capability of a candidate. [6 Marks]
(b) Explain the Morale Productivity Matrix. [8 Marks]

Answer:
(a) Three types of psychological tests are:
1. Aptitude Test: These tests measure the ability or potential of a candidate to learn a new job or skill. Defects in a person's sensory intellectual capacity can be detected through these tests. These types of tests focus attention on a particular type of talent such as reasoning, learning, mechanical bent of mind, etc., such as Intelligence Tests, Mechanical Aptitude Tests, Psychomotor or Skill Tests.
2. Personality Test: These tests study the psychological makeup of a person. They probe deeply to discover clues to an individual's value system, emotional reactions, and maturity. These tests are used to select supervisors and executives and for counseling people. These are widely used in industry as these provide an all-round picture of a candidate's personality (e.g., Objective Tests, Projective Tests, Situation Tests).
3. Interest Tests: These tests are inventories of a candidate's likes and dislikes in relation to work. These are used to discover a person's areas of interest and to identify the kind of work that will satisfy him.

(b) Morale Productivity Matrix:
1. High Morale - High Productivity: High morale will lead to high productivity if proper leadership is provided. This situation is likely to occur when employees are motivated to achieve high performance standards.
2. High Morale - Low Productivity: This situation arises when employees spend their time and energy in satisfying their personal objectives unrelated to the company's goals. Faulty machinery, lack of training, ineffective supervision, and restrictive norms of informal groups can also lead to low productivity.
3. Low Morale - High Productivity: Low morale cannot result in high productivity for a long period. This situation occurs for a temporary period due to fear of loss of job, exceptionally good supervision, and machine-paced work.
4. Low Morale - Low Productivity: If a person has low morale it will positively lead to low productivity. It is a normal relationship.

Teacher's Note:
a) For part (a), clearly classify tests according to psychological evaluation parameters.
b) For part (b), structure the four matrix quadrants clearly with explanations of cause and effect.

Question 3.
(a) Define leadership. Distinguish between leadership and management. [6 Marks]
(b) With reference to time rate system of payment, answer the following : [8 Marks]
(i) Explain this system of wage payment.
(ii) State two advantages of this system.
(iii) State two disadvantages of this system.
(iv) State two specific conditions, when this system can be used effectively.

Answer:
(a) Leadership is the process of influencing a group of persons so that they strive willingly to attain the desired objectives.

(b) (i) Time Rate System: Under this system, wages are directly linked with the time spent by workers on the job. Wages (W) = Time spent (T) x Rate of wages per unit of time (R).
(ii) Advantages of Time Rate System:
1. Simplicity: Time rate system is very simple and easy to calculate and understand.
2. Acceptance by Trade Unions: Trade unions prefer the time-rate system because it facilitates workers' unity. Under this system, there is no distinction made between efficient and inefficient workers.
(iii) Disadvantages of Time Rate System:
1. Premium on Inefficiency: The time rate system makes no distinction between efficient and inefficient workers. Inefficient workers are protected and they are treated at par with efficient workers. Therefore, the efficiency of workers is likely to decline.
2. Lack of Incentives: This system provides no inducement to work hard and produce more. Ambitious and hard-working employees do not get more wages, and therefore, they begin to restrict their output to the level which is necessary to keep their jobs.
(iv) Suitability of Time-Rate System:
1. Where 'quality' rather than 'quantity' of output is the main consideration.
2. When work is standardized and not repetitive.

Teacher's Note:
a) Emphasize the distinct nature of leadership as a subset of direction within management.
b) Clearly segregate advantages, disadvantages, and conditions for time rate wage systems.

Question 4.
(a) 'Demotion is a serious punishment and humiliation for the employee.' State and explain any three reasons, when it becomes necessary to implement it in the office. [6 Marks]
(b) State and explain any four ways in which an employee's association with his organization may come to an end. [8 Marks]

Answer:
(a) Demotion is a reduction in rank often accompanied by a reduction in pay and requires a rethinking of employee job responsibilities. Three reasons when it becomes necessary to implement it in the office are:
1. To correct an initial misplaced appointment or assignment where the employee is unable to cope with the higher responsibility.
2. As a disciplinary measure or alternative to dismissal when an employee commits misconduct or fails to meet expected standards.
3. When organizational restructuring or downsizing leads to the elimination of higher-level positions, forcing a downward re-allocation of personnel.

(b) Four ways in which an employee's association with his organization may come to an end:
1. Retrenchment: Means permanent termination of an employee's service for economic reasons in a going concern. It is termination due to redundancy of the workforce. Retrenchment creates a sense of insecurity and resentment among the staff.
2. Dismissal: Dismissal or discharge refers to terminating the services of an employee by way of punishment for misconduct or unsatisfactory performance. Unsatisfactory performance implies persistent failure of the employee to perform his job to specified standards. Dismissal is a drastic step and should, therefore, be resorted to with great care. It should be supported by a just and sufficient cause.
3. Retirement: The contract with an employee specifies the age of retirement. Employees retire from service on attaining the age of superannuation. At the time of retirement, the employee receives his provident fund amount, gratuity, and encashment of earned leaves, etc.
4. Resignation: It means an employee takes or is made to take the initiative to leave the job. Resignation may be voluntary or involuntary. In case of voluntary resignation, an employee resigns on his own due to dissatisfaction with the organization. Resignation is considered involuntary when the employer advises the employee to resign or face disciplinary action.

Teacher's Note:
a) Ensure demotion is framed as an administrative corrective action rather than arbitrary punishment.
b) Distinguish clearly between voluntary cessation (resignation, retirement) and involuntary termination (dismissal, retrenchment).

Question 5.
(a) Define communication. Discuss the significance of feedback in a sound communication process. [6 Marks]
(b) What is meant by semantic barriers? Explain any three semantic barriers to communication. [8 Marks]

Answer:
(a) Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons. The process of communication is incomplete until the sender receives the feedback. If the feedback is in tune with the message, communication is said to be effective.
Feedback is the key element in communication as it is the only way of judging the effectiveness of the message. Feedback indicates knowledge about the outcome of communication. It begins when the receiver responds to the message and ends when the response reaches the sender. Feedback enables the sender to know whether his message has been properly understood or not. Feedback varies from one situation to another. In face-to-face communication, there is immediate feedback. The sender can judge the effect of his message from the face of the receiver. While, in the case of written messages, the feedback is not available immediately. The writer cannot see the facial expressions of the receiver.

(b) Semantic barrier refers to the study of meanings of words and signs. Semantic barriers arise due to problems in language. Three semantic barriers to communication are:
1. Words with Different Meanings: Communication is mainly carried through spoken or written words. But some words convey different meanings to different people. When the reader or listener assigns a different meaning to a word than what the writer or speaker intended, miscommunication occurs. People interpret the same word differently due to differences in their economic, social, cultural, or educational background.
2. Bad Expression: When the message is not formulated and presented in the proper manner, the receiver fails to comprehend it and misunderstanding occurs. Badly expressed messages lose their impact and cause loss of valuable time and money as they require further corrections and clarifications.
3. Faulty Translation: Each piece of information received should be translated into a suitable form for further transmission. Often people translate words in a literal sense, thereby losing the spirit behind the words. Inaccurate translation leads to misunderstanding and confusion.

Teacher's Note:
a) Emphasize that feedback completes the two-way communication loop.
b) Semantic barriers deal exclusively with language, symbols, and interpretation issues.

Question 6.
(a) Name and explain any three staff locating systems that can be used in a modern office. [6 Marks]
(b) Discuss four advantages and four limitations of telephone services in an organization. [8 Marks]

Answer:
(a) Three staff locating systems that are used in a modern office:
1. Public Address System: It is the simplest and in some cases the most effective method of locating staff. Under this system, a loudspeaker is used to broadcast an appeal from a master station to all the departments requesting the attention of the desired person.
2. Bells and Buzzers: Bells and buzzers are commonly used to call a messenger or a subordinate. The person called is given some message through sound. This system is noisy and at times the person fails to hear the bell or buzzer.
3. Lighted Signals: These are installed to attract the attention of a particular person. Each person on the call list is given a code number. Whenever a particular individual is required, his code number is lighted on the signal and a buzzer is operated.

(b) Advantages of the telephone service:
1. It saves time by providing immediate contact. It is a very fast mode of communication.
2. It overcomes the distance barrier and avoids the need for face-to-face conversation.
3. It provides immediate feedback. The speaker can explain and clarify his message to ensure that it is properly understood.
4. It reduces status barriers. There are certain things which people hesitate to say in a face-to-face meeting but which can be said over the phone.

Limitations of the telephone services:
1. In telephone conversations, facial expressions and gestures cannot be used to supplement words.
2. The receiver of a telephone call cannot go over the message again and again, and there is little time to think.
3. It is not possible to judge the mood or temper of the receiver.
4. It is not suitable for lengthy messages.

Teacher's Note:
a) Staff locating systems are essential internal office communication tools.
b) List distinct operational advantages and disadvantages for telephone communication.

Question 7.
With reference to company meetings, answer the following:
(a) What is meant by casting vote? [3 Marks]
(b) Under what circumstances can a meeting be adjourned? Explain the term sine die in this connection. [3 Marks]
(c) Explain quorum as a pre-requisite of a valid meeting. [4 Marks]
(d) Write a short note on proxy. [4 Marks]

Answer:
(a) Casting vote is the vote which a chairman can exercise to decide the issue on which members are equally divided or there is a tie.

(b) Adjournment is a motion which is moved to suspend the entire proceedings of a meeting either for a particular period or indefinitely. "Sine die" means for an indefinite period.

(c) A quorum means the specified minimum number of qualified persons whose presence is necessary to transact legally binding business at a meeting. The members who constitute the quorum must be effective members, i.e., entitled to vote at the meeting. The meeting is not legally constituted when the quorum is not present.

(d) A member entitled to attend and vote at a meeting can appoint or nominate another person to attend and vote at the meeting on his behalf. The person so appointed is known as the proxy. The proxy may or may not be a member of the company. Proxies can be appointed in accordance with the provisions of the Articles of Association. The proxy cannot speak at the general meeting nor can he cast a vote unless there is a poll. There are two types of proxies, namely special proxy and general proxy.

Teacher's Note:
a) Ensure company law terminology like quorum, proxy, and casting vote are defined precisely.
b) Note that a proxy generally has no right to speak during a show of hands.

Question 8.
(a) Explain pictogram and histogram with the help of suitable examples. [6 Marks]
(b) Draft a letter of order with the following details: [8 Marks]
(i) 100 units of 60 watts tube-lights @ 40/- per unit.
(ii) 150 units of 100 watts bulbs @ 15/- per unit.
(iii) 250 units of 40 watts CFL bulbs @ 70 per unit.

Answer:
(a) Pictograms are widely used in presenting statistical data. They are not abstract presentations such as line graphs or bar graphs. Pictograms are attractive and easy to understand. When pictograms are used, data are represented through a carefully selected pictorial symbol. Pictograms are more difficult to construct and are very popular in fairs and exhibitions, etc., where the attention of the masses is to be drawn (e.g., representing military strength or population figures using symbols).
Histogram is the most popular and widely used graphic method of presenting a frequency distribution. A histogram is a set of vertical bars whose areas are proportional to the frequencies represented. The area of the histogram represents the total frequency as distributed throughout the classes. Histogram can be quite misleading if the frequency distribution has unequal class intervals and suitable adjustments in frequencies are not made.

(b)

Castle Cary PLC
5, Barlow Street, Mussoorie

Tel: 064-888-7654
Telex No.: 202769
Date: 13 Mar. 2012
Order No.: 39876

To,
Brookside PLC
Dehradun

Please supply and deliver to the above address the following goods:

Terms of payment:
2 1/2 % one month, 5% 7 days.

Signed ............................................
Purchasing Officer
Castle Cary PLC

Teacher's Note:
a) For part (a), contrast pictorial representation with graphical frequency distributions.
b) For part (b), verify that table arithmetic totals correctly (100x40 = 4000; 150x15 = 2250; 250x70 = 17500; Total = 23,750).