ISC Class 12 Business Studies Board Exam Question Paper 2017 with Solutions

ICSE Class 12 Business Studies Board Exam Question Paper 2017 with Solutions

Part - I (30 Marks)

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

(i) What are the benefits of Campus recruitment ? [2 Marks]

Answer:
1. Well-educated persons become available without any advertisements.
2. Campus recruitment is very convenient and inexpensive.

Teacher's Note:
a) Campus recruitment is a direct method of sourcing fresh talent from educational and professional institutions.
b) Ensure you mention both the cost-saving aspect and the availability of qualified candidates to secure full marks.

(ii) State any two hindrances of staff training. [2 Marks]

Answer:
1. Shortage of qualified trainers.
2. Lack of top management support.

Teacher's Note:
a) Staff training faces operational and financial bottlenecks in many organizations.
b) Students can also mention lack of funds or trainee willingness as valid alternatives.

(iii) List any two conditions where time-rate system of wage payment is most suitable. [2 Marks]

Answer:
1. Where the quality of work is more important.
2. Where the output of a worker cannot be measured.

Teacher's Note:
a) Time-rate system measures wages based on the time spent on the job rather than the volume of output produced.
b) Emphasize that precision and craftsmanship require time-rate rather than piece-rate systems.

(iv) Enumerate any four human needs according to Maslow's hierarchy. [2 Marks]

Answer:
1. Physiological Needs: Fundamental needs essential for survival such as food, water, air, sleep, clothing, and shelter.
2. Safety Needs: Security needs including physical safety and economic safety against theft and old age.
3. Social Needs: Needs for love, affection, association, and acceptance by various social groups.
4. Esteem Needs: Needs for self-respect, self-confidence, and feeling of personal worth.

Teacher's Note:
a) Maslow's hierarchy progresses from basic survival needs to psychological and self-fulfillment needs.
b) Naming any four levels accurately with brief explanations fetches full credit.

(v) Give any two differences between leadership and management. [2 Marks]

Answer:

Teacher's Note:
a) Management is formal and structural, whereas leadership is often inspirational and relational.
b) Presenting the difference in a tabular format makes the answer clear and structured.

(vi) How does performance appraisal differ from potential appraisal ? [2 Marks]

Answer:
Performance appraisal is the process of evaluating the employees' performance on the job in terms of the requirements of the job, whereas potential appraisal refers to the evaluation of capacity, talent, and unutilized talent of a person for future roles.

Teacher's Note:
a) Performance appraisal looks at past and current achievements, while potential appraisal looks forward to future capabilities.
b) Highlight the distinction between actual job execution and hidden future capabilities.

(vii) State any two conditions where demotion can be justified. [2 Marks]

Answer:
1. Due to recession and other economic crises, employees may have to be demoted.
2. Due to changes in technology and work methods, employees unable to handle their jobs or adjust to new technology can be demoted.

Teacher's Note:
a) Demotion is a downward movement of an employee in the organizational hierarchy and is used as a disciplinary measure or due to inability to cope with structural changes.
b) Ensure that valid organizational causes are stated rather than personal vendettas.

(viii) Explain any one distinction between suspension and termination with reference to staff dismissal. [2 Marks]

Answer:
Suspension means disciplinary action taken against an employee to penalize or temporarily keep them away from work pending inquiry for their conduct, whereas termination is the permanent removal of an employee from the payroll of the organization.

Teacher's Note:
a) Suspension is usually a temporary status during investigation or minor penalty, while termination ends the employment contract permanently.
b) Clearly distinguish between temporary suspension of duties and complete severance of employment.

(ix) Explain the two types of external communication. [2 Marks]

Answer:
1. Inward Communication: When all messages received by the organisation from outside are processed, e.g., telephone calls, supplier inquiries, letters.
2. Outward Communication: When all messages that go out of an organisation to external parties are transmitted, e.g., sales letters, notices, annual reports.

Teacher's Note:
a) External communication involves exchange of information between the organization and outside stakeholders.
b) Providing appropriate examples for both inward and outward flows reinforces the answer.

(x) List the components of a communication process. [2 Marks]

Answer:
1. Sender
2. Encoding
3. Message
4. Channel
5. Decoding
6. Receiver
7. Feedback

Teacher's Note:
a) Communication is a continuous circular process involving these core elements in sequence.
b) Listing all components in proper order is essential to secure full marks.

(xi) What are routine reports ? Give any two examples of the same. [2 Marks]

Answer:
Routine reports have a standard layout and are prepared at regular intervals in the routine course of business. Examples: Weekly production reports, monthly reports on sales.

Teacher's Note:
a) Routine reports serve as standard operational updates submitted periodically.
b) Give clear frequency-based business examples like weekly or monthly operational statements.

(xii) Explain clear days notice with regard to company meetings. [2 Marks]

Answer:
The term 'clear days' implies the number of days between the date of serving notice to the members and the scheduled date of the meeting, excluding both the day the notice is served and the day of the meeting, in terms of the provisions of the Companies Act.

Teacher's Note:
a) 'Clear days' rule ensures that members get adequate time to prepare and attend company meetings.
b) Mentioning the exclusion of the date of dispatch and date of meeting is crucial for accuracy.

(xiii) List any four types of diagrams and graphs used in visual communication. [2 Marks]

Answer:
1. Pie-diagram
2. Pictogram
3. Histogram
4. Line graph

Teacher's Note:
a) Visual communication tools help present complex statistical data in an easily understandable format.
b) Any four standard types of charts, diagrams, or graphs are accepted.

(xiv) What are derivative tables ? Why are they called so ? [2 Marks]

Answer:
Derivative tables serve as a repository of information and are arranged for easy reference from primary data. They are called derivative tables because they are derived or processed from original primary statistical tables to explain specific points in a report.

Teacher's Note:
a) Derivative tables condense and present specific subsets of data for comparative or analytical discussion.
b) Emphasize their origin from primary statistical data.

(xv) With reference to post office services, write the expanded forms of: [2 Marks]
(a) RMS
(b) TMO

Answer:
(a) RMS: Railway Mail Service
(b) TMO: Telegraphic Money Order

Teacher's Note:
a) Postal abbreviations must be written with absolute accuracy.
b) No partial marks are awarded for spelling errors in standard abbreviations.

Part - II (70 Marks)

Answer any five questions

Question 2.

(a) Discuss any three types of recruitment interviews. [6 Marks]

Answer:
1. Face-to-Face Interview: In this method, there is a one-to-one conversation between the candidate and the company's representative, usually human resource personnel. It helps to assess the personality, communication skills, and basic knowledge of the candidate.
2. Structured Interview: A structured interview is one in which the interviewer prepares a list of questions in advance and asks the same set of questions to all candidates to compare and rate their answers objectively.
3. Group Interview: In a group interview, the interviewer gives a topic to a group of candidates who discuss it among themselves for a predetermined period. The interviewer observes the candidates regarding the quality and quantity of their inputs and interpersonal skills.

Teacher's Note:
a) Recruitment interviews are crucial tools for selecting the right candidate from a pool of applicants.
b) Clearly explain the methodology and purpose of each interview type.

(A) With reference to on-the-job training, answer the following. [8 Marks]
(i) Explain this method of training.
(ii) State any two advantages of this method.
(iii) State any two disadvantages of this method.
(iv) Give any two major distinctions between off-the-job training and on-the-job training.

Answer:
(i) On-the-job training enables workers to be trained under actual working conditions with the same processes and equipment used to perform the job. The trainee learns under the guidance and supervision of a superior or an instructor.
(ii) Advantages of on-the-job training:
1. The trainee learns the rules, regulations, and procedures by observing their day-to-day applications.
2. This method is very economical because no additional space, equipment, or separate training facilities are required.
(iii) Disadvantages of on-the-job training:
1. The trainee may cause damage to costly equipment and materials.
2. Accidents in the workplace may increase due to lack of experience.
(iv) Distinction between off-the-job training and on-the-job training:

Teacher's Note:
a) On-the-job training is practical and cost-effective but carries operational risks.
b) Ensure all four sub-parts are clearly numbered and answered separately to secure full marks.

Question 3.

(a) Define motivation. Briefly explain any four characteristics of motivation. [6 Marks]

Answer:
Motivation is an inspirational process which impels members of a team to pull their weight effectively, give their loyalty to the group, carry out assigned tasks, and play an active role in achieving organizational objectives.
Characteristics of motivation:
1. Psychological Phenomenon: Motivation is generated within an individual as an internal feeling arising from personal needs and wants.
2. Complex Process: Motivation is complex because human needs vary, change over time, and there is no single universal theory that applies identically to all workers.
3. Continuous Process: Motivation is an ongoing process since human needs are unlimited; fulfilling one set of needs gives rise to another.
4. Financial and Non-Financial Benefits: Motivation can be achieved through both monetary incentives like bonuses and non-monetary recognitions like status and participation in decision-making.

Teacher's Note:
a) Motivation drives employee performance and organizational productivity.
b) Provide the definition accurately followed by distinct operational characteristics.

(b) Explain any four factors that influence staff morale. [8 Marks]

Answer:
1. Nature of Job and Challenge: Morale tends to be low when the job provides no challenge or satisfaction and standards are unrealistically high, whereas meaningful jobs boost morale.
2. Interpersonal Relations: Confidence in fellow workers builds high morale. When employees receive right advice and cooperation from peers, morale increases.
3. Working Conditions: A physical work environment, job security, medical benefits, fair wages, and welfare facilities exert significant positive influence on employee morale.
4. Organizational Efficiency: Clearly defined lines of authority and responsibility and proper systems of communication promote organizational efficiency, which forms the foundation of high morale.

Teacher's Note:
a) Staff morale reflects the overall attitude, satisfaction, and outlook of employees toward their work environment.
b) Explain each factor clearly with its impact on employee motivation and job satisfaction.

Question 4.

(a) Write a short note on authoritative leadership. [6 Marks]

Answer:
Authoritative or autocratic leadership is a style where the leader concentrates all authority and decision-making power in themselves. They use threats of punishment or rewards assuming that people dislike work and avoid responsibility.
Advantages:
1. Permits quick decision-making since the leader acts unilaterally.
2. Works well where subordinates prefer strict discipline and centralized control.
Disadvantages:
1. Leads to frustration, low morale, and conflict, affecting efficiency.
2. Causes resistance to change as workers feel harassed and suppressed.

Teacher's Note:
a) Authoritative leadership is centered around absolute boss control.
b) Including both pros and cons gives a balanced view of this leadership style.

(b) Explain four major differences between Halsey and Rowan plans of incentive. [8 Marks]

Answer:

Teacher's Note:
a) Both Halsey and Rowan plans are premium bonus systems designed to reward workers for saving time.
b) Presenting the comparison in a table with clear formulas secures full marks.

Question 5.

(a) Briefly explain any six reasons for the rising need for efficient communication. [6 Marks]

Answer:
1. Increases Managerial Efficiency: Managers provide guidance to employees through communication, making them feel secure and interested.
2. Decision-Making: The quality of decisions depends on available information; efficient communication helps implement decisions quickly.
3. Motivation to Employees: Good communication moulds employee behavior, creates cordial relations, and encourages systematic work.
4. Creation of Teamwork: Communication builds mutual understanding and cooperation among people, satisfying social needs.
5. Human Relations: Participation through communication develops a sense of belonging and loyalty among employees.
6. Public Relations: Effective communication helps management maintain good relations with customers, suppliers, and government, building corporate image.

Teacher's Note:
a) Efficient communication is the lifeblood of modern business organizations.
b) List and briefly explain six distinct reasons to achieve full credit.

(b) (i) Define promotion. [8 Marks]
(ii) With regard to promotion, explain the following:
(1) Upgrading
(2) Open promotion
(3) Closed promotion

Answer:
(i) According to Dale Yoder, promotion is the movement of an employee to a position in which responsibilities and prestige are increased. It involves advancement to a senior position with higher salary, status, and better conditions.
(ii) (1) Upgrading: It means the upliftment of an employee for a job with an increase in pay but without an increase in status and core responsibilities.
(2) Open Promotion: All existing employees are considered potential candidates, and the company formally announces such position openings internally.
(3) Closed Promotion: In a closed system, candidacy is restricted, not open to all employees, and vacancies are filled without open internal announcements.

Teacher's Note:
a) Promotion acts as a vital motivational tool for employee retention and career progression.
b) Differentiate clearly between upgrading, open promotion, and closed promotion.

Question 6.

(a) Briefly discuss any three advantages and any three disadvantages of face-to-face communication. [6 Marks]

Answer:
Advantages of face-to-face communication:
1. Facial expressions and gestures reinforce spoken words.
2. It removes distances and psychological barriers between communicator and receiver.
3. The speaker can make necessary adjustments on the spot based on listener reactions.
Disadvantages of face-to-face communication:
1. It may generate communication gaps if not articulated properly.
2. It is not suitable for lengthy messages to be transmitted to large audiences.
3. It provides no permanent written record for future reference.

Teacher's Note:
a) Face-to-face communication is the most direct and personal medium of interaction.
b) Clearly state three advantages and three disadvantages as requested.

(b) Explain any four ways in which voting can take place in a company meeting. [8 Marks]

Answer:
1. By Ballot: Ballot papers are distributed to every member entitled to vote. They record their vote and put it in the ballot box, and results are declared after counting.
2. By Division: Members in favor of a motion form one block and those against form another block, and tellers count the numbers to announce the result.
3. Voting by Poll: Voting rights are cast in proportion to the number of shares held by each member. A separate poll is required for each resolution.
4. By Voice Notes (Show of Hands/Voice): The chairman requests members in favor to say 'Yes' and those against to say 'No', and announces the verdict based on volume of voices.

Teacher's Note:
a) Proper voting procedures ensure democratic decision-making in corporate meetings.
b) Explain four distinct methods accurately as per company law and practice.

Question 7.

(a) What are reports ? Explain cross-referencing and appendix with regard to reports. [6 Marks]

Answer:
A report is a written statement based on a collection of facts and opinions regarding past accomplishments, present conditions, or future developments. It provides information to shareholders, creditors, and government authorities.
1. Cross-Referencing: Making a mention at one place in a report about some other point located elsewhere in the report. It saves time and space for the reader.
2. Appendix: Supplementary material attached at the end of a report to explain and support its conclusions, including statistical data, graphs, and tables.

Teacher's Note:
a) Reports are formal documents essential for managerial control and decision-making.
b) Define reports and explain both structural components clearly.

(b) Briefly explain any four advantages of each of the following:
(i) Telefax
(ii) E-mail [8 Marks]

Answer:
(i) Advantages of Telefax:
1. Any type of drawing, whether handwritten or printed, can be transmitted instantly.
2. It transmits sketches and diagrams from one place to another.
3. Copies received can be used immediately without further processing.
4. It transmits copies of important documents at the speed of a telephone call.
(ii) Advantages of E-mail:
1. It is the fastest method of communicating written messages anywhere globally at minimal cost.
2. Messages can be kept confidential and secure using encryption codes.
3. Messages can be sent and received anywhere in the world 24/7.
4. Clarifications can be sought immediately when sender and receiver are online simultaneously.

Teacher's Note:
a) Modern communication channels have revolutionized business correspondence.
b) List four distinct advantages for both telefax and e-mail.

Question 8.

(a) Explain the Post Box Service provided by Post Office. State any two advantages to the organisation which uses this service. [6 Marks]

Answer:
Post Box Service: A post box is a numbered box available on rent at major post offices. Every box is allocated a number, and incoming mail bearing that number is placed inside. The hirer can open the box during post office hours to collect mail securely and promptly.
Advantages to the organisation:
1. Mail remains secure and is received without loss of time.
2. Clients need not write full postal addresses; citing only the post box number is sufficient.

Teacher's Note:
a) Post box services offer privacy and convenience for corporate mail handling.
b) Explain the facility and state two clear operational advantages.

(b) As the Manager of a company, write a letter of complaint to XYZ Furniture Ltd., for having delivered some chairs in a broken condition and asking them for replacement of the broken chairs. [8 Marks]

Answer:

ABC Company Ltd.
New Delhi - 110001

8 March 2017

The Sales Manager,
XYZ Furniture Ltd.,
Industrial Area, New Delhi

Subject: Complaint regarding damaged furniture delivered against Order No. 452

Dear Sir,

I am writing on behalf of our company to express our deep regret regarding the delivery of chairs supplied by your firm on 2nd March 2017. Upon inspection, we found that a significant number of chairs were received in a completely broken and unusable condition.

This has caused considerable disruption to our office setup. We request you to inspect the damaged items and arrange for their immediate replacement with fresh pieces at the earliest. The broken chairs are ready for return, and we expect that transportation costs for the replacement will be borne by your company.

An early response and prompt action will be highly appreciated.

Yours faithfully,
(Signature)
Manager

Teacher's Note:
a) Business complaint letters must be polite, factual, and specific about the grievance and desired remedy.
b) Ensure proper letter formatting, including sender's address, date, recipient, subject line, and formal closing.