ISC Class 12 Business Studies Board Exam Question Paper 2016 with Solutions

ISC Class 12 Business Studies Board Exam Question Paper with Solutions

Part-I (30 Marks)

(Answer all questions)

Question 1.
Answer briefly each of the questions (i) to (xvi) : [15 x 2]

(i) Define recruitment. [2 Marks]

Answer:
Recruitment refers to a process of searching for prospective employees and encouraging them to apply for jobs in the organisation. It is a positive process as it stimulates people to apply for jobs.

Teacher's Note:
a) Ensure the distinction between recruitment and selection is clear; recruitment is a positive process of attracting candidates.
b) Students often confuse recruitment with selection. Be precise with terminology.

(ii) What is the significance of application blank in a selection procedure ? [2 Marks]

Answer:
A blank application form is designed to get a written record of candidate's qualifications, experience and other details. It helps in securing the necessary information about the candidate's qualifications, training, experience, etc. in his own handwriting. This information is useful in determining the suitability of the candidate for the concerned job.

Teacher's Note:
a) Mention that it provides standardized biographical data for comparison.
b) Highlight that the candidate's handwriting also serves as a basis for preliminary handwriting analysis if required.

(iii) Explain how office layout can act as a morale depressant as well as a morale stimulant. [2 Marks]

Answer:
Office layout can act as a morale stimulant by offering meaningful and satisfying jobs which help to improve employee morale through proper ventilation, lighting, and comfortable seating. On the other hand, morale tends to be low when the office layout provides no comfort, causes overcrowding, lacks privacy, and has poor working conditions.

Teacher's Note:
a) Connect physical environment directly with psychological well-being of employees.
b) Give clear examples of stimulant (proper light, space) versus depressant (cramped spaces, noise).

(iv) State any two qualities of a good leader. [2 Marks]

Answer:
1. Physical Features: Physical features like height, weight, energy, health, appearance, etc., determine the personality of an individual, which is an important factor in determining the success of leadership. A person who is physically fit is likely to appeal as a leader and attract people.
2. Knowledge: A leader must possess thorough knowledge and competence of all the subjects, principles, procedures, and operations of his field. Intelligent leaders are able to instruct and influence subordinates in an effective manner.

Teacher's Note:
a) Students can state any two valid qualities such as integrity, communication skills, or emotional intelligence.
b) Always provide a brief explanation when asked to state qualities to secure full marks.

(v) Explain self-actualization need as given by Maslow. [2 Marks]

Answer:
Self-actualization needs are the needs of the highest order in Maslow's hierarchy. They are generally found in persons whose first four needs have already been fulfilled. They are concerned with achieving what a person considers to be his mission in life, realizing one's full potential, and engaging in self-fulfillment activities.

Teacher's Note:
a) Clearly state that this is the apex of Maslow's hierarchy of needs.
b) Avoid misspellings like 'Ma slow' as printed in the question paper and write Maslow correctly.

(vi) What is meant by production transfer ? [2 Marks]

Answer:
Production transfers are transfers affected from one department of the organisation to another department keeping in view the labor requirements in different departments. In some departments, labor requirements may be decreasing while in others they may be increasing. To avoid the layoff of trained and efficient employees, they are placed in alternate positions in the same organisation.

Teacher's Note:
a) Highlight that this transfer protects employees from retrenchment during fluctuating workloads.
b) Distinguish clearly between production transfer and remedial or replacement transfer.

(vii) Define promotion. [2 Marks]

Answer:
Promotion refers to the movement of an employee from a lower level position to a higher level position, carrying higher responsibilities, facilities, status, and pay.

Teacher's Note:
a) Emphasize that promotion involves vertical shifting of employees.
b) Note that it serves as a powerful non-financial incentive boosting morale and loyalty.

(viii) What is decoding with reference to communication process ? [2 Marks]

Answer:
Decoding refers to the process of interpretation and understanding of the symbols, signs, or messages sent by the sender. It involves the receiver converting the received encoded message into meaningful thoughts or ideas.

Teacher's Note:
a) Emphasize that decoding is performed by the receiver in the communication loop.
b) Ensure the definition explicitly mentions translating symbols/words into understanding.

(ix) Differentiate between horizontal communication and vertical communication. [2 Marks]

Answer:

Teacher's Note:
a) Use a tabular format for clear differentiation as expected in board marking schemes.
b) Point out the direction of flow (lateral versus upward/downward).

(x) Distinguish between a cellular phone and a cordless phone. [2 Marks]

Answer:

Teacher's Note:
a) Highlight mobility range as the primary distinguishing factor.
b) Mention that cellular phones rely on cellular network towers while cordless phones connect directly to a landline base station.

(xi) How does a business reply card help a business concern ? [2 Marks]

Answer:
A business reply card helps a business concern to procure mail orders, suggestions on its products, survey reports, etc., without putting the financial burden of postage on the customer. It is a prepaid card where postage is borne by the business concern upon its return.

Teacher's Note:
a) Explain the mechanism of prepaid postage paid by the recipient/business.
b) Note its utility in increasing response rates for marketing surveys and orders.

(xii) What is the role of an appendix in a report ? [2 Marks]

Answer:
An appendix in a report is a supporting document attached at the end which contains supplementary material such as detailed tables, calculations, references, bibliography, or glossaries that are too detailed to be included in the main text.

Teacher's Note:
a) Clarify that it supports and verifies the contents and conclusions of the report without cluttering the main body.
b) Students should list examples like questionnaires or statistical data tables.

(xiii) Explain quorum. [2 Marks]

Answer:
A quorum means the specified minimum number of qualified members whose presence is necessary to transact legally binding business at a meeting. A meeting is not legally constituted and proceedings are invalid if the quorum is not present.

Teacher's Note:
a) Emphasize that decisions made without a quorum are generally null and void.
b) Mention that Articles of Association usually determine the exact quorum number.

(xiv) Give any two limitations of visual communication. [2 Marks]

Answer:
1. Costly: Visual methods of communication like charts, graphs, and diagrams are more expensive to prepare than simple oral or written methods.
2. Complex Presentation: Sometimes visual presentation of information becomes too complex for receivers to interpret correctly without detailed explanations.

Teacher's Note:
a) Ensure two distinct limitations are explicitly numbered.
b) Point out that visual aids require specialized skills to design and understand.

(xv) With reference to remuneration of employees, expand the following :
(a) HRA
(b) LTA [2 Marks]

Answer:
(a) HRA - House Rent Allowance
(b) LTA - Leave Travel Allowance

Teacher's Note:
a) Write out full forms clearly without spelling errors.
b) These are standard components of employee compensation packages in corporate remuneration structures.

Part-II (70 Marks)

Answer any five questions

Question 2.
(a) Differentiate between induction training and job training. [6]
(b) Filling vacancies from within the organization has some merits as well as demerits. Briefly explain any four such merits and any four demerits. [8]

Answer:
(a) Distinction between Induction Training and On-the-Job Training

Teacher's Note:
a) Use a clear tabular format comparing at least three to four distinct bases.
b) Emphasize that induction focuses on orientation, whereas job training focuses on skill enhancement.

(b) Merits and Demerits of Internal Sources of Recruitment

Answer:
Merits of Internal Sources of Recruitment:
1. Simple and Economical: The process of selection and placement becomes very simple and economical as no extensive external advertisements or recruitment agencies are required.
2. No need of Training: Since existing employees are already familiar with the working conditions and operations, there is little or no need for extensive induction training.
3. Motivation: It motivates the existing employees to improve their performance and productivity in anticipation of career advancement.
4. Promotional Avenues: Clear promotional avenues boost employee morale, build loyalty, and lead to the establishment of industrial peace.

Demerits of Internal Sources of Recruitment:
1. Fresh and more Talented Stock: The scope for the entrance of fresh blood, innovative ideas, and more talented candidates from outside is severely restricted.
2. Promotion: Surety of promotion based purely on seniority can make employees complacent and lazy.
3. Lack of Competition: Internal recruitment reduces the feeling of healthy competition since employees know positions are reserved for insiders.
4. Frequent Transfers: Frequent internal transfers to fill vacancies can disrupt workflow and adversely affect the overall productivity of the organisation.

Teacher's Note:
a) Ensure four clear merits and four distinct demerits are explained fully.
b) Highlight that while internal recruitment saves cost, it risks inbreeding and complacency.

Question 3.
(a) State any three advantages and any three disadvantages of Piece rate system of wage payment. [6]
(b) Explain the relationship between morale and productivity. [8]

Answer:
(a) Advantages of Piece Rate System of Wage Payment:
1. Reward Efficient Workers: It provides a direct financial incentive where efficient workers earn more by producing more units.
2. Less Supervision Required: Workers are self-motivated to increase output, thereby reducing the need for close supervision and monitoring.
3. Distinction between Workers: It clearly discriminates between efficient and inefficient workers based on output.

Disadvantages of Piece Rate System of Wage Payment:
1. Decline in Quality: Workers may rush production to increase quantity, leading to a compromise on the quality of goods produced.
2. Insecurity: Workers experience wage insecurity and anxiety, especially slower workers who earn lesser amounts.
3. Wastage of Resources: In the hurry to produce more units, raw materials are often mishandled and wasted.

Teacher's Note:
a) Clearly separate advantages and disadvantages into bulleted points.
b) Explain how piece rate links earnings directly to output.

(b) Relationship between Morale and Productivity:
Answer:
There can be four combinations of morale and productivity:
1. High Morale - High Productivity: High morale reflects a predisposition to be more productive if proper leadership is provided. This situation occurs when employees are motivated through financial and non-financial rewards, aligning individual and organisational goals.
2. High Morale - Low Productivity: This situation arises when employees spend their time and energy satisfying personal objectives unrelated to company goals. Faulty machinery, lack of training, ineffective supervision, and restrictive informal group norms can cause low productivity despite high morale.
3. Low Morale - High Productivity: Low morale cannot result in high productivity for a long period. However, this can occur temporarily due to fear of job loss, exceptionally strict supervision, or machine-paced work where only a part of worker capabilities is utilized.
4. Low Morale - Low Productivity: This is a normal and expected relationship. In the long run, low morale invariably results in low productivity and poor organizational performance.
Thus, there is a complex relationship between morale and productivity because morale is only one of many factors influencing productivity.

Teacher's Note:
a) Detail all four quadrants of the morale-productivity matrix clearly.
b) Emphasize that high morale does not automatically guarantee high productivity without proper tools and leadership.

Question 4.
(a) Define staff appraisal. Explain in brief, any four objectives of staff appraisal. [6]
(b) Explain the procedure of staff dismissal that a large organisation should follow. [8]

Answer:
(a) Definition and Objectives of Staff Appraisal:
Staff appraisal is the process of evaluating the employee's performance on the job in terms of the requirements of the job.
Objectives of staff appraisal:
1. To identify strengths and weaknesses of staff to place the right person on the right job.
2. To maintain systematic records in order to determine compensation packages, increments, and wage structures.
3. To identify inefficient workers and the root causes for their inefficiency.
4. To serve as a basis for influencing working habits and motivating employees toward self-improvement.

Teacher's Note:
a) Provide a precise definition followed by four clear bulleted objectives.
b) Mention that appraisal helps in both administrative and developmental decisions.

(b) Procedure of Staff Dismissal:
Answer:
Dismissal is a harsh step and should be taken with great care. The steps involved in the dismissal procedure are as follows:
1. Charge Sheet: Issuing a formal written complaint stating the exact offence for which the employee is charged, along with a specified time limit within which the employee must submit a reply.
2. Receipt of Explanation: The employee must submit a written explanation within the prescribed time to the concerned authority explaining why disciplinary action should not be taken.
3. Issue of Notice of Inquiry: If the explanation is found unsatisfactory, a formal notice of inquiry is issued, clearly mentioning the time, place, date, and the name of the inquiry officer.
4. Holding Inquiry: The inquiry officer conducts proceedings on the specified date, reads out charges, records statements of witnesses, examines documents, and allows the employee to defend themselves.
5. Findings Inquiry: The inquiry officer prepares a detailed report containing the procedure followed, statements recorded, documents examined, and findings, and submits it to the disciplinary authority.
6. Decision: Upon receiving the report, the competent authority takes a final decision regarding dismissal.
7. Communication of Order: Finally, a formal written copy of the dismissal order is handed over to the employee under signature.

Teacher's Note:
a) Emphasize that natural justice must be strictly followed during dismissal proceedings.
b) Sequence the steps logically from charge sheet to final communication.

Question 5.
(a) Briefly explain any three essentials of a good report. [6]
(b) Action taken by the receptionist while routing visitors varies, based on different situations. State any four such situations and explain how the receptionist will act under each situation. [8]

Answer:
(a) Essentials of a Good Report:
1. Proper Organisation of Facts: A good report must present facts in a logical, systematic, and well-structured sequence.
2. Simple and Unambiguous Language: The report must be written in clear, simple, and precise language to avoid any misunderstanding.
3. Conciseness: A report should be concise and not unnecessarily lengthy, focusing strictly on its primary purpose.

Teacher's Note:
a) State three clear characteristics/essentials.
b) Mention that clarity and brevity are paramount in business reporting.

(b) Routing Visitors by Receptionist:
Answer:
1. Visitors with Appointments: The receptionist checks the appointment list, calls the secretary of the officer concerned, and informs them of the visitor's arrival. The visitor is then escorted to the manager's room.
2. Visitors Without Appointments: The receptionist telephones the executive's office to inform them of the visitor. If the executive is busy, the visitor may be asked to wait or an alternative appointment is scheduled, recording contact details.
3. Regular Visitors: For regular clients or frequent visitors whom the receptionist knows well, a friendly greeting is extended, and they are directed promptly to the appropriate personnel.
4. Visitors Who Cannot Be Received: If the requested officer is out of town, the receptionist politely ascertains the purpose of the visit, offers assistance, or directs the visitor to another competent executive, or takes a message.

Teacher's Note:
a) Outline four practical situations faced by receptionists.
b) Emphasize tact, courtesy, and diplomacy as essential traits for handling visitors.

Question 6.
(a) Discuss any three barriers to effective Communication. [6]
(b) Explain any four functions of a business letter. [8]

Answer:
(a) Barriers to Effective Communication:
1. Badly Expressed Message: Sometimes a manager is not able to communicate messages clearly to subordinates due to omission of words, poor vocabulary, or grammatical errors.
2. Symbols with Different Meanings: A word or symbol can have multiple interpretations. If the receiver misunderstands the context, the communication becomes distorted.
3. Faulty Translation: Policies and guidelines received from top management in English must often be translated into local languages for workers. Poor translation creates serious misunderstandings.

Teacher's Note:
a) State three distinct barriers clearly with brief explanations.
b) Emphasize semantic and organizational barriers in communication flow.

(b) Functions of a Business Letter:
Answer:
1. Wide Coverage: A business firm cannot send personal representatives to every operational area. It can easily approach distant clients and firms through business letters.
2. Exchange of Information: Business firms exchange crucial information regarding prices, terms, and creditworthiness with various parties through letters.
3. Documentary Proof: Business letters serve as documentary evidence and written records that can be produced in a court of law in case of disputes.
4. Economical: Letters provide an economical mode of written communication across great distances at minimal postal costs.

Teacher's Note:
a) List four distinct functions with clear headings.
b) Highlight the legal evidentiary value of business letters.

Question 7.
(a) What are statistical tables ? Explain caption and stub in this context. [6]
(b) With reference to Company Meetings, explain the following : [8]
(i) What is a Motion ?
(ii) State any two ways by which a Motion can be amended.
(iii) What is a Counter Motion ?
(iv) Name any four types of Formal Motions.

Answer:
(a) Statistical Tables, Caption, and Stub:
A statistical table is a systematic arrangement of quantitative data in columns (vertical arrangements) and rows (horizontal arrangements) designed to make data comprehensible and facilitate comparison.
- Stub: This is the extreme left part of the table, giving a description of the matter presented in rows. The stub explains what each row represents.
- Caption: This is the upper part of the table, giving a description of the matter presented in columns. The caption explains what each column represents.

Teacher's Note:
a) Define tabulation clearly before explaining stub and caption.
b) Distinguish clearly between row headings (stub) and column headings (caption).

(b) Company Meetings:
Answer:
(i) Motion: A motion is a formal proposal or proposition moved by a member for discussion and voting at a meeting. It must be in writing, related to the agenda, and duly proposed and seconded.
(ii) Two ways a Motion can be amended:
- By deleting specific words.
- By inserting or adding new words.
(iii) Counter Motion: A counter motion is a motion moved as a complete substitute for the original motion, proposing an entirely different course of action on the same subject.
(iv) Four types of Formal Motions:
- The closure
- Proceed to next business
- Postponement
- Adjournment

Teacher's Note:
a) Answer all four sub-parts ((i) to (iv)) separately and precisely.
b) Ensure proper distinction between an amendment and a counter motion.

Question 8.
(a) With reference to Postal Services, explain the following : [6]
(i) Registered Post
(ii) Money Order
(b) Draft a letter of appointment for a School Teacher, offering her a job of an English teacher in a secondary school. [8]

Answer:
(a) Postal Services:
(i) Registered Post: A secure postal service where the sender pays an additional fee and obtains a receipt. The postal authorities ensure that the article is delivered exclusively to the addressee or an authorized agent, maintaining a record at every transit point.
(ii) Money Order: A financial service provided by post offices for remitting money safely from one place to another. The remitter deposits cash and commission, and the post office orders the post office at the destination to pay the specified sum to the payee.

Teacher's Note:
a) Explain both registered post and money order with functional clarity.
b) Emphasize security and tracking features in registered mail.

(b) Draft Letter of Appointment:
Answer:

144, AJC Bose Road
Kolkata - 700014
24th April, 2011

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

Dear Madam,

Re : Appointment for the post of school teacher.

This letter is to inform you that with reference to your interview attended on 23rd March, 2011 at the Principal's office in our school, we are pleased to appoint you as an English teacher in our secondary school. Your scale of pay, leave entitlement, house rent allowance, and other perks will be intimated upon receipt of your formal confirmation.

We hope you are eager to join us.

Thanking you,

Yours faithfully,
Alisa Mitra
(Principal)

Teacher's Note:
a) Follow the standard formal letter format with sender's address, date, receiver's address, subject, salutation, body, and complimentary close.
b) Ensure all names and dates provided in the prompt are correctly incorporated.