ISC Class 12 Business Studies Board Exam Question Paper 2013 with Solutions

ISC Class 12 Business Studies Board Exam Question Paper with Solutions

Part-I

Question 1. Answer briefly each of the questions (i) to (xv).

(i) Explain the importance of campus recruitment as one of the sources of recruitment. [1 Mark]

Answer:
Campus recruitment provides companies with a wide choice of young, talented applicants from educational institutions within a limited time. It saves time and recruitment costs such as advertisement and initial screening, while giving students the advantage of securing jobs before completing their academic courses.

Teacher's Note:
a) Highlight that campus recruitment is an external source of recruitment targeting fresh graduates.
b) Mention both cost savings for the organization and early placement benefits for students to secure full credit.

(ii) Why is a disciplinary interview conducted? [1 Mark]

Answer:
A disciplinary interview is conducted for an employee in connection with alleged misconduct to ensure a fair procedure is followed, giving the employee a chance to be heard after investigating the matter and reviewing available evidence.

Teacher's Note:
a) Emphasize that it is part of maintaining organizational discipline and adhering to natural justice.
b) Ensure students mention that evidence review and fair hearing precede the interview.

(iii) State the significance of conducting refresher training. [1 Mark]

Answer:
Refresher training is significant to help employees keep pace with new technologies, adapt to current innovations, update with latest industry trends, and enhance their overall performance and efficiency.

Teacher's Note:
a) Differentiate refresher training from induction training by focusing on skill updating.
b) Point out that it bridges the gap between existing employee skills and modern technological advancements.

(iv) What is the importance of team work in the successful functioning of an organization? [1 Mark]

Answer:
Team work ensures better output, stronger employee bonding, and faster task accomplishment compared to individual effort, while fostering a healthy competitive spirit among members.

Teacher's Note:
a) Focus on synergy and collaborative problem-solving as core benefits.
b) Avoid vague statements; specify improved productivity and workplace harmony.

(v) Define remuneration. What is meant by incentives in the context of remuneration? [1 Mark]

Answer:
Remuneration is the pay or compensation received for employment services, including wages, salaries, allowances, and benefits. An incentive is an item of value or reward that spurs an employee to perform better and achieve desired goals.

Teacher's Note:
a) Clearly distinguish basic remuneration (fixed pay/benefits) from incentives (performance-based rewards).
b) Mention examples like bonuses or commissions to illustrate incentives effectively.

(vi) What is a time card ? State any one benefit of a time card to the organization using it. [1 Mark]

Answer:
A time card is a card used for recording the exact time at which an employee arrives at and departs from work. Its major benefit is ensuring employee punctuality and accurately calculating total working hours per day.

Teacher's Note:
a) Define it as an attendance and working-hour tracking tool.
b) State a concrete benefit such as wage calculation or attendance monitoring.

(vii) What is meant by open promotion system and closed promotion system? [1 Mark]

Answer:
An open promotion system is one where available jobs and requirements are posted publicly, allowing all qualified employees to apply. A closed promotion system is one where managers unilaterally decide which workers will be considered for promotion.

Teacher's Note:
a) Highlight transparency as the key differentiator between the two systems.
b) Ensure both definitions clearly state employee eligibility and management involvement.

(viii) State any two essential requirements of a fair staff dismissal procedure. [1 Mark]

Answer:
Two essential requirements of a fair staff dismissal procedure are giving the employee a fair warning with an opportunity to meet performance standards, and providing a fair hearing along with a required notice period or payment in lieu of notice.

Teacher's Note:
a) Emphasize adherence to established HR policies and natural justice.
b) Include notice period requirements as a mandatory legal and procedural step.

(ix) Explain any two limitations of recruitment interview. [1 Mark]

Answer:
Two limitations of recruitment interviews are: (1) applicants may feel uncomfortable and fail to present themselves properly, and (2) interviews rely heavily on the interviewer's personal subjective judgment, which does not guarantee the best hiring outcome.

Teacher's Note:
a) Focus on candidate anxiety and evaluator bias as primary drawbacks.
b) Keep explanations concise and distinct for both points.

(x) Define report. [1 Mark]

Answer:
A report is a document containing information organized in a narrative, graphic, or tabular form, prepared on an ad hoc, periodic, or regular basis to communicate specific business facts, events, or subjects.

Teacher's Note:
a) Emphasize the structured and informative nature of a report.
b) Mention that reports can be presented in oral or written formats.

(xi) What is a note of dissent ? [1 Mark]

Answer:
A note of dissent is an expression of an opinion different from a prevailing or official position, recorded by a member who disagrees with a majority decision.

Teacher's Note:
a) Explain its relevance in meetings and formal proceedings.
b) State clearly that it records individual disagreement against consensus or majority views.

(xii) As per the Companies Act 1956, how frequently should a Company hold Board Meetings in a year ? [1 Mark]

Answer:
As per the Companies Act, a company must hold a minimum of four Board meetings every year, with a maximum interval of not more than one hundred and twenty days between two consecutive Board meetings (along with the first meeting held within thirty days of incorporation).

Teacher's Note:
a) Cite the four meetings requirement clearly.
b) Mention the maximum gap of 120 days to ensure completeness.

(xiii) State any two limitations of visual communication. [1 Mark]

Answer:
Two limitations of visual communication are: (1) it is expensive to prepare visual aids like maps, charts, and diagrams, and (2) complex presentations can sometimes be misunderstood by receivers.

Teacher's Note:
a) Highlight cost and complexity as the main barriers.
b) Ensure both points directly address visual media drawbacks.

(xiv) Give any two advantages of using post boxes /post bags while receiving mail through a Post Office. [1 Mark]

Answer:
Two advantages are: (1) customers can conveniently collect their mail from rented post boxes at the post office, and (2) all fully prepaid unregistered articles addressed to the customer are safely placed inside the post box or bag for collection during business hours.

Teacher's Note:
a) Focus on convenience and secure mail handling.
b) Specify that it applies to unregistered prepaid articles.

(xv) With reference of postal remittances, expand the following: (a) T.M.O (b) VP.P [1 Mark]

Answer:
(a) T.M.O - Telegraphic Money Order
(b) V.P.P - Value Payable Post

Teacher's Note:
a) Check for exact spelling and expansion.
b) Award full marks only if both abbreviations are expanded correctly.

Part - II

(Answer any five questions)

Question 2.
(a) What is meant by piece rate system of wage payment? State and justify two distinct situations where its use is advisable. [7 Marks]
(b) Explain any four differences between Halsey and Rowan plans of wage incentive. [8 Marks]

Answer:
(a) When wages are paid based on the output of workers without considering the time taken, it is termed the piece rate system. Workers are paid per unit of output, article, or job produced, computed using a predetermined rate fixed through time and motion studies.
Formula: Wages = Number of units produced × Rate of wage per unit.
Suitability:
1. Where the quantity of work done can be precisely measured and standardized.
2. Where the work is of a repetitive nature and productivity is closely related to skill and effort.

Teacher's Note:
a) Define piece rate clearly, highlighting output-based calculation.
b) Justify suitability conditions based on standard measurement and repetitive tasks.

(b)

Teacher's Note:
a) Present differences clearly in a tabular format covering bonus calculation, quality, and control.
b) Emphasize how Rowan plan regulates bonus growth compared to Halsey's linear growth.

Question 3.
(a) Explain any three advantages and any three disadvantages of merit based promotion. [7 Marks]
(b) Discuss any four purposes of conducting staff appraisal. [8 Marks]

Answer:
(a) Advantages of Merit Based Promotion:
1. No Favoritism: Eliminates perceptions of favoritism and corporate politics, rewarding actual capability and performance.
2. Motivation Boost: Encourages workers to put in extra effort and perform better to secure promotions and career growth.
3. Reward for Ability: Recognizes skilled and innovative employees regardless of their length of service.
Disadvantages of Merit Based Promotion:
1. Frustration among Seniors: Senior employees who are bypassed may feel demoralized and frustrated.
2. Friction in Supervision: Juniors promoted over seniors may face resistance or lack of cooperation from senior subordinates.
3. Indiscipline: Can lead to workplace jealousy, lowering morale and causing organizational indiscipline.

Teacher's Note:
a) Group points logically under clear headings for advantages and disadvantages.
b) Highlight employee morale and organizational harmony in the evaluation.

(b) Purposes of staff appraisal:
1. Evaluation: To let employees know where they stand relative to performance standards, measure performance accurately, and provide continuous feedback.
2. Development: To assist in training and personal development, making employees more competent and committed to their roles.
3. Administrative Purposes: To document human resource decisions regarding promotions, transfers, layoffs, salary increments, and retention or termination.
4. Legal and Training Compliance: To meet legal requirements and evaluate the effectiveness of organizational training programmes.

Teacher's Note:
a) Distinguish clearly between evaluation, development, and administrative purposes.
b) Ensure all four functions are explained with appropriate HR examples.

Question 4.
(a) Define motivation. Differentiate between monetary and non-monetary factors affecting motivation. [7 Marks]
(b) Discuss the hierarchy of needs as given by Maslow. [8 Marks]

Answer:
(a) Motivation is the process of stimulating people to actions to accomplish organizational and personal goals, derived from motives like needs, desires, and drives within individuals.

Teacher's Note:
a) Define motivation as a goal-directed drive.
b) Differentiate clearly between financial incentives and psychological/work-environment rewards in the table.

(b) Maslow's Hierarchy of Needs:
1. Physiological Needs: Basic survival needs like air, water, food, and shelter.
2. Security/Safety Needs: Need for safety, financial security, health care, and stability.
3. Social Needs: Needs for belonging, love, affection, and friendship through social and community groups.
4. Esteem Needs: Needs reflecting self-esteem, personal worth, recognition, and accomplishment.
5. Self-Actualization Needs: The highest level representing the desire to fulfill one's potential and achieve personal growth.

[Figure: Pyramid diagram showing five levels of Maslow's hierarchy from Physiological at the base to Self-actualization at the top]

Teacher's Note:
a) Explain the hierarchical progression from basic survival to self-fulfillment.
b) Ensure all five levels are described in the correct order.

Question 5.
(a) Write short note on Internal Communication in an organization. [7 Marks]
(b) Oral communication is an unreliable yet popular method of Communication. Discuss. [8 Marks]

Answer:
(a) Internal communication is the transmission of information between organizational members and units across all levels. It aims to get management messages across, build trust, keep employees informed, and foster engagement and contribution. Without effective internal communication, organizations risk disconnect between management and staff.

Teacher's Note:
a) Define internal communication across organizational hierarchies.
b) Highlight its role in building employee trust and engagement.

(b) Oral Communication:
Oral communication involves verbally transmitting information, ideas, and messages through face-to-face conversations, meetings, or presentations.
Why it is popular: It is personal, flexible, fast for resolving issues, highly effective in conflict resolution, and great for boosting team morale.
Why it is unreliable: It lacks authentication and permanent written record, messages can be distorted or misinterpreted, and spoken words cannot be easily referenced in legal disputes.

Teacher's Note:
a) Balance both aspects of oral communication (popularity vs. unreliability).
b) List advantages like speed and flexibility alongside drawbacks like lack of written proof.

Question 6.
(a) Why are tests conducted in a selection procedure. State any two advantages and any two limitations of such tests. [7 Marks]
(b) With the help of suitable examples, explain the following: (a) Bar graph. (b) Pie diagram [8 Marks]

Answer:
(a) Tests are conducted in selection procedures to assess candidates' knowledge, skills, aptitude, and attitude required for a job.
Advantages:
1. Proper Assessment: Evaluates mental capability and job suitability accurately.
2. Objective Assessment: Provides objective criteria, eliminating personal bias and subjectivity.
Limitations:
1. Unreliable: Test inferences may sometimes fail to judge a candidate's true practical ability.
2. Wrong Use: Incompetent or biased evaluators can misuse tests, leading to false results.

Teacher's Note:
a) State the purpose of employment testing clearly.
b) Balance assessment accuracy with risks of evaluator bias and unreliability.

(b)
(a) Bar Graph: A graphical representation of data using horizontal or vertical rectangular bars whose lengths are proportional to the values they represent. For example, monthly sales figures of a company can be shown using bars for each month.
(b) Pie Diagram: A circular statistical graphic divided into slices to illustrate numerical proportions, where each slice represents a percentage or fractional part of a whole. For example, the market share percentage of different smartphone brands can be displayed in a pie chart.

Teacher's Note:
a) Explain both graphical tools with clear business examples.
b) Mention that bar graphs compare discrete categories while pie charts show parts of a whole.

Question 7.
(a) What are formal motions? Explain any two types of formal motions. [7 Marks]
(b) Give two points of distinction between each of the following: (i) Ordinary Resolution and Special Resolution. (ii) Annual General Meetings and Extra Ordinary General Meeting. (iii) Private Report and Public Report. (iv) Statutory Report and Non-Statutory Report. [8 Marks]

Answer:
(a) Formal motions are procedural proposals made during a meeting by a registered member regarding how business should be conducted or how procedures should be followed.
Two types of formal motions:
1. Motion to Adjourn: A motion proposing to end the meeting immediately.
2. Motion to Proceed to the Next Business: A motion to drop the current discussion and move to the next item on the agenda.

Teacher's Note:
a) Define formal motions in the context of meeting procedures.
b) Provide practical examples of procedural motions used in corporate meetings.

(b)
(i) Ordinary vs Special Resolution:
- Majority Required: Ordinary resolution requires a simple majority (votes cast in favor exceed votes against), whereas special resolution requires a special majority (votes in favor must be at least three times the votes cast against).
- Notice Requirement: Special resolution requires specific prior notice stating the intention to propose it as a special resolution, unlike ordinary resolution.
(ii) Annual General Meeting (AGM) vs Extraordinary General Meeting (EGM):
- Frequency: AGM is held once every year compulsorily, whereas EGM is held as and when required between two AGMs.
- Purpose: AGM deals with routine annual business (adoption of accounts, dividends, auditors), while EGM deals with urgent or special business.
(iii) Private Report vs Public Report:
- Circulation: Private reports are restricted to internal management or specific members, whereas public reports are disclosed to shareholders, regulators, and the public.
(iv) Statutory Report vs Non-Statutory Report:
- Legal Mandate: Statutory reports are compulsorily required by law (like the Companies Act), whereas non-statutory reports are prepared voluntarily for internal analysis or discretionary disclosure.

Teacher's Note:
a) Ensure all four sub-comparisons have exactly two clear points of distinction.
b) Focus on voting majorities, legal mandates, and frequency of meetings.

Question 8.
(a) Write short notes on : (i) Under Certificate of Posting (ii) Franking Machine. [7 Marks]
(b) A consignment of 1000 bed-sheets received by your organization has the following defects : - 200 bed-sheets are of the color not ordered. - 60 bed-sheets have defective weaving. In the light of these defects, write a letter of complaint to the supplier, M/s A. B. C. Ltd. [8 Marks]

Answer:
(a) (i) Under Certificate of Posting (UPC): A postal service where ordinary letters were handed over with a list stamped by the post office for a nominal fee, serving as legal proof of dispatch.
(ii) Franking Machine: A machine used in offices to weigh and print postage stamps directly onto outgoing mail, saving time and eliminating the need to stand in post office queues.

Teacher's Note:
a) Define UPC as proof of dispatch for ordinary mail.
b) Highlight the administrative efficiency of franking machines in mail handling.

(b)
KHANNA HOSIERY PVT LTD
121, Khanna Road
Ludhiana - 141001
Phone - 0161-2267356
Email - orders@khannahosiery.in
30.04.2015

The Sales Manager
M/s A.B.C. Handlooms
G T Road
Panipat - 136101

Dear Sir,

SUBJECT : DEFECTS AND DISCREPANCIES IN ITEMS SUPPLIED
REFERENCE : ORDER NO. 121 DATED 25.04.2015

With reference to the above order for 1000 bed-sheets, we have received the consignment today and noted the following discrepancies:
1. 200 Classic Bed-Sheets have been received in Yellow color instead of the ordered Pink color.
2. 60 Evergreen Bed-Sheets have defective weaving and cannot be sold due to visible defects.

We are packing the defective and incorrect items for return. Please arrange to collect them and credit the full proceeds to our Account No. 0800100018811 upon receipt.

Yours faithfully,
(Narender Kumar)
Purchases In-charge

Teacher's Note:
a) Follow standard business letter format including sender, receiver, date, subject, and reference.
b) Clearly state the specific defects and action required (return and credit adjustment).