ISC Class 12 Business Studies Board Exam Question Paper 2015 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) [30 Marks]

(i) Recruitment is a two way process. Explain. [2 Marks]

Answer:
It is important for both the job applicant and the organisation to ensure that the right job goes to the right person. Taking the wrong job may be just as disastrous for the employee as for the organisation. Recruitment and selection, therefore, involves the organisation (represented by the manager) and the applicant trying to discover the extent to which their separate interests are likely to be served by the appointment. In other words, it is a two - way process.

Teacher's Note:
a) Emphasize that recruitment involves mutual evaluation by both employer and prospective employee.
b) Students often mistakenly write that it only involves the employer seeking candidates.

(ii) What is meant by halo effect in interviewing? [2 Marks]

Answer:
The halo effect is when our impression of someone is skewed by one positive trait, leading us to make generalizations about them as a whole. In short, the halo effect describes our tendency to think someone is good in lots of areas if they have impressed us in one area.

Teacher's Note:
a) Explain that this cognitive bias affects interviewers' objective judgment during candidate evaluation.
b) Mention that it can lead to poor hiring decisions if a single standout feature overshadows other critical weaknesses.

(iii) Distinguish between training and development. [2 Marks]

Answer:
Training is a short - term process consisting of an event focused on improving specific job skills, whereas development indicates the gradual and long - term process relevant to the overall growth of personality, maturity, and potential capabilities.

Teacher's Note:
a) Highlight that training is job - oriented while development is career - oriented.
b) Ensure students contrast their scope and time horizon clearly to secure full marks.

(iv) State two conditions where piece - rate system is most suitable. [2 Marks]

Answer:
1. Where production quantity is more important than the quality of the product.
2. When the work is of a repetitive nature.

Teacher's Note:
a) Piece - rate wages link pay directly to output produced.
b) Note that this system is unsuitable where precision and high quality are paramount.

(v) Define motivation. [2 Marks]

Answer:
Motivation is the word derived from the word motive which means needs, desires, wants or drives within individuals. It is the process of stimulating people to actions to accomplish organizational and personal goals.

Teacher's Note:
a) Emphasize the psychological root word motive in your definition.
b) Clearly state that it drives goal - directed behavior.

(vi) Give any two advantages of Laissez - Faire style of leadership. [2 Marks]

Answer:
1. It encourages high autonomy, creativity, and self - development among subordinates.
2. It is highly effective when group members are skilled, highly motivated, and capable of working on their own.

Teacher's Note:
a) Explain that leaders in this style provide complete freedom in decision - making.
b) Caution that it fails miserably if subordinates lack competence or self - discipline.

(vii) What is meant by dry promotion? [2 Marks]

Answer:
Promotion implies upgrading of an employee to a higher post involving an increase in rank and responsibilities. A dry promotion is a type of promotion where the person being promoted gets a higher title and increased responsibilities, but does not receive any monetary benefit or salary increase.

Teacher's Note:
a) Clearly define the contrast between status upgrade and financial increment.
b) Give real - world examples such as academic titles or administrative positions without pay hikes.

(viii) Explain the significance of remedial transfer. [2 Marks]

Answer:
Remedial transfer is made to rectify mistakes in selection and placement. As a follow - up, the wrongly placed employee is transferred to a more suitable job where their skills match the requirements.

Teacher's Note:
a) Focus on its corrective nature in human resource management.
b) Differentiate it from routine or periodic transfers.

(ix) Why layoff is considered to be a softer version of retrenchment? [2 Marks]

Answer:
A layoff involves the temporary suspension or cessation of employment by an employer due to business slowdown or shortage of work, where employees are paid compensation and are expected to be recalled to their usual posts once normal business resumes. Retrenchment, however, is a permanent termination of service.

Teacher's Note:
a) Emphasize the temporary nature of layoff versus permanent separation in retrenchment.
b) Mention that laid - off workers retain a right of recall.

(x) Explain the two types of vertical communication. [2 Marks]

Answer:
1. Downward Communication: When communication flows from a higher level of authority to a lower level of authority.
2. Upward Communication: When communication flows from a lower level of authority to a higher level of authority.

Teacher's Note:
a) Use directional flow (top - down vs bottom - up) to explain the concepts clearly.
b) Give standard organizational examples for each type.

(xi) Mention two limitations of oral communication. [2 Marks]

Answer:
1. It lacks a permanent record, making it difficult to fix responsibility or use as future legal evidence.
2. It is easily distorted or forgotten over time, especially in long speeches or complex business matters.

Teacher's Note:
a) Highlight the absence of written documentation as a primary drawback.
b) Contrast it with the reliability of written business communication.

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

Answer:
1. The intention to propose the resolution as a special resolution must be specifically given in the notice convening the meeting.
2. The votes cast in favor of the resolution must not be less than three times (75%) the votes cast against it by members entitled to vote.

Teacher's Note:
a) Highlight the statutory 75 percent majority requirement under company law.
b) Ensure notice requirements are explicitly mentioned.

(xiii) Differentiate between a statutory report and a non - statutory report. [2 Marks]

Answer:
A statutory report is mandatory and required to be prepared and submitted by companies under the provisions of the Companies Act (such as the statutory report for statutory meetings). A non - statutory report is voluntary, prepared for internal management or specific informational needs not mandated by law.

Teacher's Note:
a) Anchor the difference on legal compulsion versus management discretion.
b) Provide appropriate corporate examples for clarity.

(xiv) State one advantage and one disadvantage of using a window envelope. [2 Marks]

Answer:
Advantage: It eliminates the need to write the address separately on the envelope, as the inside letter can be folded so that the recipient address shows through the transparent window.
Disadvantage: Window envelopes are more expensive and carry a risk of the transparent window tearing off during transit.

Teacher's Note:
a) Focus on time and effort saved in addressing mail.
b) Mention durability and cost concerns as the main disadvantages.

(xv) Expand the following: (a) LAN (b) WWW [2 Marks]

Answer:
(a) LAN - Local Area Network
(b) WWW - World Wide Web

Teacher's Note:
a) Ensure exact spelling of technical acronyms.
b) No abbreviations should have spelling errors.

Part - II

Answer any five questions

Question 2.
(a) State and explain any three steps involved in the selection procedure. [6]
(b) Differentiate between the wage incentive plans given by Halsey and Rowan. [8]

Answer:
(a) 1. Job Analysis: The first step in the selection process is analyzing the job. Job analysis consists of job description and job specification. Proper job analysis helps advertise the job properly and attract the right candidates.
2. Advertising the Job: The next step is to advertise the job through various media channels. Relevant details about the job requirements and candidate profile must be specified clearly in the advertisement.
3. Initial Screening: Applications are screened by a junior executive to check basic criteria such as age, qualifications, general personality, and family background. Unsuitable candidates are filtered out at this stage.

Teacher's Note:
a) Selection is a negative process where unsuitable candidates are eliminated at various stages.
b) Students must list the steps in chronological order.

Answer:
(b) Differences between Halsey and Rowan wage incentive plans:
1. Rate of Bonus: Under the Halsey plan, the bonus increases steadily and proportionately with an increase in efficiency (time saved). Under the Rowan plan, the bonus increases up to a certain point and starts declining thereafter.
2. Comparison at 50 Percent Time Saved: When work is completed in exactly half the standard time, the bonus earned is identical under both plans.
3. High Efficiency Performance: When the work is completed in less than half the standard time, the bonus under the Halsey plan is greater than under the Rowan plan.
4. Protection for Workers: The Rowan plan provides better protection and higher bonus than the Halsey plan till the time saved reaches 50 percent, making it safer for less efficient workers.

Teacher's Note:
a) Halsey formula: Total Earnings = (Time Taken x Hourly Rate) + 50% (Time Saved x Hourly Rate).
b) Rowan formula: Total Earnings = (Time Taken x Hourly Rate) + [(Time Saved / Standard Time) x Time Taken x Hourly Rate].

Question 3.
(a) Define training. Give any four benefits that an employee can get from training. [6]
(b) With the help of a diagram, explain the hierarchy of needs as given by Maslow. [8]

Answer:
(a) Training is a systematic process to increase the skills, knowledge, and abilities of an employee for doing a specific job.
Four benefits of training to employees:
1. Skill Acquisition: Employees acquire new skills, increasing their contribution to the organization and boosting self - esteem.
2. Career Advancement: Training prepares employees for higher positions within the organization with better prospects and higher pay.
3. Reduced Boredom: Upskilling enables employees to handle new and different tasks, keeping them motivated and engaged.
4. Error Reduction: Trained employees understand proper working techniques and tend to minimize operational mistakes.

Teacher's Note:
a) Distinguish clearly between benefits to the organization and benefits to the employee.
b) Use crisp bullet points for maximum scoring.

Answer:
(b) Maslow's Hierarchy of Needs comprises five levels arranged in a pyramid:
1. Physiological Needs: The most basic survival needs including air, water, food, sleep, and shelter. These must be met before higher - level needs emerge.
2. Safety and Security Needs: Needs for physical safety, financial security, health, and protection from harm or environmental threats.
3. Social / Belongingness Needs: Needs for love, affection, friendship, and acceptance by social, community, or family groups.
4. Esteem Needs: Needs for self - esteem, personal worth, social recognition, status, and accomplishment.
5. Self - Actualization Needs: The highest level, representing the desire to realize one's fullest potential, self - development, and peak experiences.
[Figure: A multi - layered pyramid diagram showing five tiers from bottom to top: Physiological, Safety, Love/Belonging, Esteem, and Self - actualization at the apex.]

Teacher's Note:
a) Emphasize the hierarchical progression from deficit needs to growth needs.
b) Drawing the pyramid diagram correctly adds immense value to the answer.

Question 4.
(a) State three advantages and three disadvantages of merit based promotion. [6]
(b) Define performance appraisal. Briefly explain the pros and cons of staff appraisal of subordinates by their superiors. [8]

Answer:
(a) Advantages of Merit - Based Promotion:
1. Rewards Ability: It recognizes and rewards hardworking and talented employees regardless of seniority, promoting organizational efficiency.
2. Boosts Motivation: Employees are motivated to put in extra effort to improve performance and secure timely promotions.
3. Eliminates Favoritism: Meritocracy replaces arbitrary biases with objective performance metrics.
Disadvantages of Merit - Based Promotion:
1. Frustration Among Seniors: Senior employees who are bypassed may feel demoralized and frustrated.
2. Inter - personal Conflict: Juniors being promoted over seniors can lead to ego clashes and resentment in the workplace.
3. Neglect of Routine Tasks: Employees might chase short - term metrics for promotion while ignoring routine collaborative duties.

Teacher's Note:
a) Contrast merit - based promotion with seniority - based promotion.
b) Ensure equal balance of three distinct advantages and disadvantages.

Answer:
(b) Performance Appraisal is the systematic evaluation of the performance of employees and understanding their abilities for further growth and development.
Pros of Superior - Subordinate Appraisal:
1. Provides documented performance history over a specific period.
2. Facilitates structured communication and feedback between managers and subordinates.
3. Clarifies performance expectations and helps align individual goals with organizational targets.
Cons of Superior - Subordinate Appraisal:
1. Subject to rater biases, favoritism, and personal errors (such as halo or horns effect).
2. Extremely time - consuming and can create a stressful environment if handled poorly.

Teacher's Note:
a) Focus on objectivity as the key requirement in appraisal systems.
b) Clearly segregate pros and cons using bullet points.

Question 5.
(a) Explain the various elements of the communication process. [6]
(b) Write short notes on the following: (i) Dictaphone (ii) Email [8]

Answer:
(a) Elements of the communication process:
1. Sender: The person who originates and intends to convey the message.
2. Ideas / Message: The subject matter of communication, including opinions, orders, or feelings.
3. Encoding: Converting the subject matter into symbols, words, or actions.
4. Communication Channel: The medium or path through which the encoded message is transmitted.
5. Receiver: The intended recipient of the message.
6. Decoding: The process by which the receiver interprets and understands the message.
7. Feedback: The response from the receiver confirming understanding of the message.

Teacher's Note:
a) Present the elements in their logical sequence from sender to feedback.
b) Highlight feedback as the closing loop of effective communication.

Answer:
(b) Short notes:
(i) Dictaphone: A specialized voice recording device used to record spoken words so they can be subsequently transcribed into written text by a stenographer or assistant. It streamlines office correspondence.
(ii) Email (Electronic Mail): A digital method of exchanging messages and documents via the internet from one user to another using unique email addresses. It is fast, cost - effective, and supports attachments.

Teacher's Note:
a) Keep short notes concise and packed with technical definitions.
b) Mention modern relevance for tools like email.

Question 6.
(a) Name and explain any three staff locating systems that can be used in a modern organisation. [6]
(b) Discuss any four advantages and any four limitations of face to face communication. [8]

Answer:
(a) Three staff locating systems:
1. Cell Phones: Providing mobile phones to employees enables immediate contact across office premises or outside.
2. Bells and Buzzers: Signaling devices installed on a superior's desk that sound buzzers outside cabins to summon peons or subordinate staff.
3. Public Address / Loudspeakers: A central paging system operated from the reception area to announce and locate staff members across departments.

Teacher's Note:
a) Focus on practical office management tools.
b) Give clear examples of how each system operates.

Answer:
(b) Advantages of Face - to - Face Communication:
1. Demonstrates personal importance and commands undivided attention.
2. Allows immediate interpretation of non - verbal cues, facial expressions, and tone of voice.
3. Enhances leadership credibility, trust, and transparency.
4. Builds strong interpersonal relationships and corporate camaraderie.
Limitations of Face - to - Face Communication:
1. Impractical and difficult to practice in large geographically dispersed organizations.
2. Ineffective for addressing very large gatherings without proper audio systems.
3. Fails if the listener is inattentive or distracted.
4. Lacks a permanent written record, making accountability difficult to establish.

Teacher's Note:
a) Emphasize the richness of verbal and non - verbal feedback in face - to - face interaction.
b) Ensure four distinct points are listed for both pros and cons.

Question 7.
(a) What are the advantages of having centralized mailing department in an organization? [6]
(b) With reference to board meetings of a company, answer the following:
(i) What should be the frequency of these meetings?
(ii) What all have the power to convene these meetings?
(iii) What are the rules governing the serving of notice of these meetings?
(iv) What course of action should be taken if quorum is not present for these meetings? [8]

Answer:
(a) Advantages of a Centralized Mailing Department:
1. Cost Savings: Reduces clerical labor costs by consolidating mail handling into a single department.
2. Better Record Keeping: Maintains accurate, centralized logs of all incoming and outgoing correspondence.
3. Reduced Errors: Standardizes mailing procedures, minimizing duplication, misplacement, and mailing mistakes.
4. Specialized Efficiency: Assigns mail handling to trained staff with specialized aptitude, ensuring speed and accuracy.

Teacher's Note:
a) Emphasize economies of scale achieved through centralization.
b) Highlight relief provided to departmental secretaries and clerks.

Answer:
(b) Board meetings answers:
(i) Frequency: The first board meeting must be held within 30 days of incorporation. Thereafter, a minimum of four board meetings must be held every year, with a maximum interval of 120 days between two consecutive meetings.
(ii) Authority to Convene: A board meeting can be convened by any director, the company secretary, or upon the request of specified authorities.
(iii) Notice Rules: Notice of every board meeting must be given in writing to every director at their registered address in India at least 7 days before the meeting (unless urgent short notice is permitted).
(iv) Quorum Absent: If quorum is not present within half an hour of the appointed time, the meeting stands adjourned to the same day next week at the same time and place, or as determined by the Board.

Teacher's Note:
a) Cite statutory provisions under the Companies Act where appropriate.
b) Ensure all four sub - parts are answered with precise legal timelines.

Question 8.
(a) With reference to visual communication, explain the following: (i) Pie diagram (ii) Bar graph (iii) Histogram [6]
(b) Draft an application in response to an advertisement for the post of a Physics teacher for teaching classes XI and XII. An appropriate Bio - data of the applicant should be prepared and enclosed with the application. [8]

Answer:
(a) Visual communication tools:
(i) Pie Diagram: A circular statistical graphic divided into slices to illustrate numerical proportions, where each slice represents percentage shares of a whole.
(ii) Bar Graph: A chart that uses horizontal or vertical rectangular bars to compare data across different discrete categories or variables.
(iii) Histogram: A graphical representation showing continuous numerical data distribution using adjacent vertical bars where area represents frequency within class intervals.

Teacher's Note:
a) Clearly distinguish between bar graphs (discrete data) and histograms (continuous data intervals).
b) Mention the purpose of each in business presentations.

Answer:
(b) Draft Application:

Naina Khera
12, Kasumpti
Shimla - 171005

25th April, 2015

The Principal
Tara Hall Public School, The Mall
Shimla - 171001

Subject: Application for the post of Physics Teacher.

Sir,

With reference to your advertisement in The Times of India dated 20th April, 2015, I wish to apply for the post of Physics Teacher for classes XI and XII in your esteemed institution.

I hold an M.Sc. degree in Physics from Punjab University, Chandigarh, and have successfully completed my B.Ed. from Indira Gandhi Open University, New Delhi. I possess excellent communication skills, high energy, and a passion for teaching senior secondary classes.

My detailed resume is enclosed herewith for your perusal. I would be grateful for an opportunity to attend an interview at your earliest convenience.

Thanking you,

Yours faithfully,
(Naina Khera)

Encl: Resume and copies of testimonials.

CURRICULUM VITAE (RESUME)
Name: Naina Khera
Father's Name: Sh. R. K. Khera
Address: 12, Kasumpti, Shimla - 171005
Contact Number: 9876543210
Email: naina.khera@email.com
Educational Qualifications:
1. M.Sc. (Physics) from Punjab University, Chandigarh (2012)
2. B.Ed. from IGNOU, New Delhi (2014)
3. B.Sc. (Non - Medical) from HPU, Shimla (2010)
Experience: 2 Years as Physics Teacher at St. Bede's Senior Secondary School, Shimla.
Languages Known: English, Hindi, Punjabi.

Teacher's Note:
a) Ensure formal letter format with sender's address, date, receiver's address, subject, and salutation is maintained.
b) The bio - data should cleanly present academic credentials and professional experience.