ISC Class 12 Business Studies Board Exam Question Paper 2018 with Solutions

ISC Class 12 Business Studies Board Exam Question Paper with Solutions

Part-I (30 Marks)

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

(i) What is meant by unsolicited applications ? [2 Marks]

Answer:
Unsolicited applications are those applications applied by persons in search of employment carrying their resume and certificates, even when no vacancy has been advertised. When suitable jobs are available later, these candidates may be contacted and considered.

Teacher's Note:
a) Unsolicited applications help organizations build a databank of potential candidates without incurring advertising costs.
b) Students must clearly state that these applications are sent on the candidate's own initiative rather than in response to a vacancy advertisement.

(ii) State the significance of conducting refresher training. [2 Marks]

Answer:
Refresher training is provided to update the knowledge and improve the working skills of existing employees. It ensures they remain proficient in using advanced technology, machinery, and modern methods of working.

Teacher's Note:
a) This type of training prevents employee obsolescence as industries evolve.
b) Mentioning the adaptation to technological changes is crucial for full credit.

(iii) Define remuneration. [2 Marks]

Answer:
Remuneration refers to the wage or salary paid to workers in cash or kind in consideration of the services rendered by them to the organization.

Teacher's Note:
a) Remuneration includes both direct monetary payments and fringe benefits.
b) Ensure the definition covers compensation for services provided.

(iv) Name any four non-monetary incentives that may be used in an organisation. [2 Marks]

Answer:
1. Status symbols
2. Appreciation of work
3. Healthy competition
4. Opportunity for growth

Teacher's Note:
a) Non-monetary incentives satisfy psychological, social, and emotional needs of employees.
b) Listing four clear, distinct incentives is sufficient for full marks.

(v) Briefly explain any two qualities of a good leader. [2 Marks]

Answer:
1. Self-confidence: A leader should have high self-confidence and be willing to listen to others and absorb new ideas.
2. Vision and foresight: A leader should be able to anticipate or visualize the future course of events to guide the team effectively.

Teacher's Note:
a) Leadership qualities determine how effectively a manager can influence subordinates.
b) Mentioning any two standard leadership qualities with brief explanation is required.

(vi) Differentiate between upgrading and dry promotion. [2 Marks]

Answer:

Teacher's Note:
a) Upgrading focuses primarily on pay scale enhancement, while dry promotion focuses on status.
b) Presenting the difference in a tabular form makes the answer clear and structured.

(vii) Give one benefit each of voluntary retirement scheme to employee and to the employer. [2 Marks]

Answer:
Benefit to employee: The employee is allowed to retire before attaining the retirement age with full retirement benefits, often due to personal reasons, disease, or disability.
Benefit to employer: It helps the employer in right-sizing the workforce and provides a recruiting advantage by creating vacancies for fresh talent.

Teacher's Note:
a) Voluntary Retirement Scheme (VRS) is a tool used for human resource restructuring.
b) Clearly distinguishing between employee and employer benefits is essential.

(viii) Bring out the significance of using grapevine as a channel of communication in an organisation. [2 Marks]

Answer:
Grapevine is an informal channel of communication that spreads quickly and helps in building social relations. It supplements official channels when official communication is slow and insufficient, and helps management gauge employee feedback and morale.

Teacher's Note:
a) Grapevine operates based on interpersonal relations and ignores formal authority lines.
b) Highlight both its speed and its supplementary role to official communication.

(ix) Explain the meaning of internal communication. Name its two types. [2 Marks]

Answer:
Internal communication refers to all communication that takes place within an organization among its members, superiors, and subordinates. Its two types are Horizontal Communication and Vertical Communication.

Teacher's Note:
a) Internal communication helps to create mutual understanding and cooperation between different departments.
b) Naming both types correctly is mandatory for full marks.

(x) What is a Dictaphone ? [2 Marks]

Answer:
A Dictaphone is an electronic dictation machine used to record speech so that a typist may playback the recording and transcribe it. It permits speedy and accurate recording of lengthy letters, debates, or proceedings.

Teacher's Note:
a) It is an office appliance designed to save executive time in correspondence.
b) Mentioning the recording and playback/transcription function is key.

(xi) Briefly explain what is meant by letter of inquiry. Which letter is written in response to it ? [2 Marks]

Answer:
A letter of inquiry is written by a potential buyer to a seller to obtain information regarding the quality, price, availability, and terms of sale of goods. A quotation letter or price catalog is written in response to it.

Teacher's Note:
a) Letters of inquiry precede commercial transactions by establishing preliminary terms.
b) Naming the quotation letter as the response is critical.

(xii) With reference to written internal communication, explain the term office order. [2 Marks]

Answer:
An office order is a means of downward communication used by management to communicate matters related to posting, promotion, transfer, suspension, or disciplinary proceedings. It carries administrative authority and is binding on lower-level employees.

Teacher's Note:
a) Office orders are formal written documents used for internal administrative control.
b) Emphasize their downward nature and binding authority.

(xiii) Explain cross referencing, in the context of report writing. [2 Marks]

Answer:
Cross referencing means making a reference at one place in a report to information, tables, or sections presented elsewhere in the same report. It saves time and helps the reader locate related data easily.

Teacher's Note:
a) Cross referencing enhances the readability and interconnectivity of lengthy reports.
b) Explain its purpose of guiding readers to related sections efficiently.

(xiv) Explain the term motion in the context of company meetings. [2 Marks]

Answer:
A motion is a formal proposal moved by a member during a meeting for discussion and voting. When a motion is duly debated and adopted by the majority, it becomes a resolution.

Teacher's Note:
a) Motions form the basis of all deliberations and decisions in company meetings.
b) Note the spelling correction from the original paper's OCR typo ('1 motion').

(xv) With reference to Post Office, expand the following: [2 Marks]
(a) VPP
(b) PIN

Answer:
(a) VPP: Value Payable Post
(b) PIN: Postal Index Number

Teacher's Note:
a) Postal terms are part of commercial correspondence and office procedures.
b) Exact expansions must be written without spelling errors.

Part - II (70 Marks)

Answer any five questions

Question 2.
(a) Explain any three points of difference between training and education. [6 Marks]

Answer:

Teacher's Note:
a) Training focuses on immediate job performance, whereas education focuses on overall intellectual development.
b) Presenting the answer in a tabular format with three clear points secures full marks.

(b) With reference to selection process, explain the significance of the following : [8 Marks]
(i) Preliminary Interview
(ii) Application Blank
(iii) Medical Examination
(iv) Final Interview

Answer:
(i) Preliminary Interview: It is the first contact between the company and the job seeker. Its purpose is to eliminate unqualified candidates at the outset and ascertain minimum qualifications, age, and experience.
(ii) Application Blank: It provides a standardized written record of the candidate's personal data, educational background, work experience, and references. It helps the selection committee evaluate suitability.
(iii) Medical Examination: It ensures that the candidate is physically fit for the job requirements. It protects the company against fraudulent compensation claims for pre-existing disabilities.
(iv) Final Interview: It is conducted after a candidate clears all hurdles to make the final selection decision and discuss terms of employment before issuing an appointment letter.

Teacher's Note:
a) Each step in the selection process acts as a successive hurdle to filter out unsuitable candidates.
b) Explain each sub-heading concisely focusing on its specific objective in the selection procedure.

Question 3.
(a) Write a short note on the Halsey Premium Plan of Incentive. [6 Marks]

Answer:
The Halsey Premium Plan was developed by F.A. Halsey. Under this plan:
1. A standard time is fixed for completing a job based on past performance.
2. If a worker completes the job within the standard time or takes more time, he is guaranteed his time wages.
3. If a worker completes the job in less than the standard time, he is paid a bonus equal to a fixed percentage (usually 50%) of the time saved valued at the time rate.
4. Formula for Total Earnings = (Time Taken × Rate per Hour) + 50% of (Standard Time - Time Taken) × Rate per Hour.
5. It benefits both workers (by offering extra earnings for efficiency) and employers (by reducing labor cost per unit and increasing output).

Teacher's Note:
a) The Halsey plan encourages workers to increase efficiency by sharing the benefit of time saved between employer and employee.
b) Mentioning the guaranteed time wage and the bonus calculation formula is essential.

(b) List any four factors that influence morale. Clearly explain how they boost or lower the morale. [8 Marks]

Answer:
1. Nature of Work: Meaningful, interesting, and satisfying jobs boost employee morale. Monotonous, unchallenging jobs with unrealistic standards lower morale.
2. Interpersonal Relations: Cordial relations and mutual trust among colleagues and superiors boost morale. Conflicts, suspicion, and lack of support lower morale.
3. Working Conditions: Safe, clean, and comfortable working conditions with fair wages boost morale. Poor ventilation, hazards, and unfair remuneration lower morale.
4. Personal Factors: High status, good health, and stable family life generally lead to high employee morale, whereas personal stress and low job status can lower it.

Teacher's Note:
a) Employee morale reflects the overall attitude and zeal of workers toward their work environment.
b) Ensure each factor clearly explains both the boosting and lowering aspects as asked in the question.

Question 4.
(a) Explain the first three needs as per Maslow's Hierarchy of Human Needs. [6 Marks]

Answer:
1. Physiological Needs: These are basic survival needs such as food, water, clothing, shelter, and sleep. They form the foundation of Maslow's hierarchy and must be satisfied first.
2. Safety and Security Needs: Once physiological needs are met, individuals seek physical protection against accidents, fire, and criminal acts, as well as economic security against unemployment, sickness, and old age.
3. Social / Affiliation Needs: These involve the need for love, affection, companionship, and a sense of belonging within social groups and among colleagues.

Teacher's Note:
a) Maslow's theory states that individuals progress step-by-step from lower-level deficiency needs to higher-level growth needs.
b) Spell 'Maslow' correctly (correcting the OCR typo 'Mas low') and describe the first three tiers accurately.

(b) Discuss any four purposes of performance appraisal. [8 Marks]

Answer:
1. Wage Increments and Rewards: Performance appraisal provides objective performance records to decide salary increments, bonuses, and incentives.
2. Training and Development: It helps identify employee weaknesses and skill gaps so that suitable training programs can be arranged.
3. Promotion Decisions: It assists management in judging whether employees are capable of handling higher responsibilities and deserve promotions.
4. Employee Motivation and Self-Development: It makes employees aware of their strengths and weaknesses, motivating them to improve their performance.

Teacher's Note:
a) Performance appraisal is a systematic evaluation of an employee's performance and potential.
b) Listing four distinct administrative and developmental purposes with brief explanations earns full marks.

Question 5.
(a) Briefly explain any three leadership styles. [6 Marks]

Answer:
1. Autocratic Leadership: The leader retains all decision-making power and authority. Subordinates are expected to follow orders strictly without participating in decision-making.
2. Democratic / Participative Leadership: The leader makes decisions in consultation with subordinates and encourages participation. Authority is decentralized, fostering cooperation and teamwork.
3. Free-Rein / Laissez-Faire Leadership: The leader grants complete freedom to subordinates in setting goals and making operational decisions, acting primarily as a contact person.

Teacher's Note:
a) Leadership styles differ based on how authority and decision-making power are distributed.
b) Providing three well-recognized leadership styles with clear descriptions is expected.

(b) What is staff transfer ? Explain any four types of transfers. [8 Marks]

Answer:
Staff transfer refers to the shifting of an employee from one job, department, branch, or shift to another without any substantial change in status, rank, or salary.
Types of transfers:
1. Production Transfers: Transfers from an overstaffed department to an understaffed department to stabilize employment and prevent layoffs.
2. Shift Transfers: Shifting employees from one work shift to another to accommodate personal requests or rotate workloads.
3. Versatility Transfers: Shifting employees across different jobs to provide multi-skill training and prepare them for future promotions.
4. Remedial Transfers: Transfers made to rectify faulty initial placement by placing an employee in a job suited to their qualifications and capabilities.

Teacher's Note:
a) Staff transfer is an internal mobility tool used for organizational adjustments and employee development.
b) Clearly define staff transfer first, followed by four distinct types with their specific purposes.

Question 6.
(a) Name and explain any three types of interviews. [6 Marks]

Answer:
1. Recruitment Interview: Conducted to assess the suitability of a candidate for a specific job vacancy and provide organizational information.
2. Appraisal Interview: Conducted periodically between superior and subordinate to review past performance, discuss grievances, and plan career growth.
3. Disciplinary Interview: Conducted to address issues of employee misconduct, investigate the root causes of indiscipline, and counsel the employee for behavioral modification.

Teacher's Note:
a) Interviews serve multiple administrative, selection, and developmental purposes in management.
b) Name three distinct types of interviews and explain their specific contexts.

(b) With reference to company meetings, explain the following terms: [8 Marks]
(i) Point of order
(ii) Statutory Meeting
(iii) Proxy
(iv) Agenda

Answer:
(i) Point of order: A question or objection raised by a member regarding a breach of meeting rules or procedure, requiring the chairman's immediate ruling.
(ii) Statutory Meeting: The first general meeting of shareholders of a public company, held mandatorily within the prescribed statutory time limits after commencing business.
(iii) Proxy: A person appointed by a shareholder to attend and vote at a company meeting on their behalf when the shareholder is unable to attend in person.
(iv) Agenda: A written statement or list of items of business to be transacted at a meeting, arranged in chronological order.

Teacher's Note:
a) Company meetings are governed by strict legal provisions under company law.
b) Provide precise legal definitions for each of the four listed meeting terms.

Question 7.
(a) Explain the process of report writing. [6 Marks]

Answer:
The key steps in the process of report writing include:
1. Introduction: Stating the purpose, title, and terms of reference of the report.
2. Headings and Sub-headings: Structuring the report logically into sections and topics.
3. Address: Specifying whom the report is addressed to and by whom it is submitted.
4. Table of Contents: Providing an index of topics and chapters with page numbers for lengthy reports.
5. Findings and Analysis: Presenting collected data, facts, tables, and analysis.
6. Recommendations and Conclusions: Providing actionable suggestions based on findings.
7. Signature and Date: Authenticating the report with the reporter's signature and submission date.

Teacher's Note:
a) Report writing is a formal communication process used to present factual data for decision-making.
b) Outline the logical sequence of components that make up a formal business report.

(b) What are statistical tables ? Explain any three advantages of tabulating data. [8 Marks]

Answer:
Statistical tables refer to the systematic and logical arrangement of quantitative data in vertical columns and horizontal rows with appropriate headings and titles to facilitate analysis.
Advantages of tabulation:
1. Simplification: Condenses a massive volume of complex data into an orderly, compact format, making it easily understandable.
2. Facilitates Comparison: Organizes data into comparative rows and columns, enabling quick comparison between different sets of figures.
3. Highlights Patterns: Reveals underlying trends, relationships, and totals clearly which might be missed in descriptive text.

Teacher's Note:
a) Tabulation is an essential statistical tool for data presentation and business analysis.
b) Define statistical tables clearly and explain three major advantages of tabulation.

Question 8.
(a) State any six advantages of centralized handling of mail in an organisation. [6 Marks]

Answer:
1. Reduces delays and errors by standardizing mailing operations.
2. Permits economical use of labor-saving office machinery such as letter openers and folding machines.
3. Employs trained personnel, leading to greater accuracy and speed.
4. Ensures strict control over postage stamps and proper accounting of postal expenses.
5. Facilitates systematic handling and prompt distribution of inward and outward mail.
6. Trains new office staff in routine correspondence procedures efficiently.

Teacher's Note:
a) Centralized mailing is handled through a unified mail department for cost and efficiency benefits.
b) List six clear operational advantages to secure full marks.

(b) Draft an application letter for the post of an Assistant Manager (Sales) at a reputed retail firm in response to a newspaper advertisement. An appropriate bio-data of the applicant should be prepared and enclosed with the application. [8 Marks]

Answer:
M.K. Sareen
C-6, Tilak Nagar, Phase I
Delhi

April 20, 2018

The Manager, Human Resources
ABC Company Ltd.
7, Nariman Point
Mumbai

Subject: Application for the post of Assistant Manager (Sales)

Sir,

With reference to your advertisement in The Hindustan Times dated April 15, 2018, I hereby apply for the post of Assistant Manager (Sales) in your esteemed organization. I possess the requisite qualifications and experience, as detailed in my bio-data enclosed herewith.

I assure you that if given an opportunity, I will discharge my duties with utmost dedication and to the satisfaction of my superiors.

Yours faithfully,
(Signature)
M.K. Sareen

Enclosure: Bio-data

BIO-DATA
Name: M.K. Sareen
Address: C-6, Tilak Nagar, Phase I, Delhi
Date of Birth: April 6, 1987
Marital Status: Unmarried
Educational Qualifications:
1. 90% marks in Commerce stream (Class XII)
2. B.Com (H) from Shri Ram College of Commerce with 85% marks
3. PGDBM from Jagan Institute of Management Studies
Experience: 3 years as Sales Executive in a reputed firm
Extra-Curricular Activities: House Captain in school, Secretary of Commerce Society in college
References:
1. Principal, Shri Ram College of Commerce, University of Delhi

Teacher's Note:
a) A formal job application must include sender's address, date, recipient's address, subject, salutation, body, complementary close, and a structured bio-data.
b) Ensure all professional details in the bio-data align with the requirements of an Assistant Manager (Sales) position.