ISC Class 12 Business Studies Board Exam Question Paper 2019 with Solutions

ISC Class 12 Business Studies Board Exam Question Paper with Solutions 2019

PART I (20 Marks)

Question 1. Answer briefly each of the questions (i) to (x): [20 Marks]

(i) Name the two sources of e-recruitment. Briefly explain any one of them. [2 Marks]

Answer:
Two sources of e-recruitment are:
1. Resume Scanners
2. Job Portals

Job Portals: A job portal, also known as a career portal, is an online job board that helps applicants find jobs and aids employers in their quest to locate ideal candidates. Some government agencies, non-profit organizations, universities and private businesses have their own job portals that applicants can access on the organization's website.

Teacher's Note:
a) E-recruitment utilizes electronic channels, primarily the internet, to source and screen candidates efficiently.
b) Ensure both sources are clearly named before writing a brief explanation of any one.

(ii) State any two differences between training and development. [2 Marks]

Answer:

Teacher's Note:
a) Training is typically job-oriented while development is career-oriented.
b) Presenting the differences in a tabular format ensures clarity and fetches full marks.

(iii) Briefly explain the two types of esteem needs, as per the human needs stated by Maslow. [2 Marks]

Answer:
As per Maslow, esteem needs refer to a person's need for self-respect, self-esteem, status, recognition, and attention from others. They can be categorized into two types:
1. Internal Esteem Needs: These relate to self-respect, confidence, achievement, competence, and freedom.
2. External Esteem Needs: These relate to social status, recognition, attention, reputation, and appreciation from other people.

Teacher's Note:
a) Abraham Maslow placed esteem needs at the fourth level of his hierarchy of human needs.
b) Students must clearly distinguish between self-directed esteem (internal) and socially-directed esteem (external).

(iv) Define Leadership. [2 Marks]

Answer:
Leadership is the art or process of influencing and motivating a group of people to act willingly towards achieving a common organizational goal.

Teacher's Note:
a) A complete definition must highlight the elements of influence, guidance, and common goal achievement.
b) Avoid writing vague definitions; include key management terminology like 'influencing' or 'guiding'.

(v) State any two limitations of promotion of employees in an organisation. [2 Marks]

Answer:
Two limitations of promotion from within are:
1. If promotions are based strictly on seniority, capable and deserving young employees may be overlooked, leading to frustration.
2. It limits the introduction of fresh blood, new ideas, and outside talent into the organization.

Teacher's Note:
a) Internal promotion can sometimes lead to inbreeding of ideas if external candidates are completely barred.
b) Ensure limitations are specific to internal promotion rather than recruitment in general.

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

Answer:
Gratuity is a monetary benefit given by an employer to an employee as a token of appreciation for the services rendered by the employee upon retirement, resignation, or termination.

Teacher's Note:
a) It is a statutory retirement benefit regulated under specific labor laws such as the Payment of Gratuity Act in India.
b) Mention that it is funded entirely by the employer without employee contributions.

(vii) State any two benefits of e-business to the buyers. [2 Marks]

Answer:
Two benefits of e-business to buyers are:
1. Convenience: Buyers can shop 24 x 7 from anywhere without visiting physical stores.
2. Wider Choice and Competitive Prices: Buyers get access to a global market with a wider variety of products at competitive prices.

Teacher's Note:
a) Focus strictly on benefits received by the buyer, not the seller or business enterprise.
b) Doorstep delivery and easy comparison shopping are also valid points.

(viii) What is meant by outsourcing? [2 Marks]

Answer:
Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff.

Teacher's Note:
a) Companies typically outsource non-core business activities to reduce operational costs and improve efficiency.
b) Key terms like contracting third-party service providers must be present in the answer.

(ix) State any two functions of FSSAI. [2 Marks]

Answer:
Two functions of the Food Safety and Standards Authority of India (FSSAI) are:
1. Framing of regulations to lay down standards and guidelines for food safety.
2. Promoting general awareness about food safety and food standards among consumers and food businesses.

Teacher's Note:
a) FSSAI is responsible for protecting and promoting public health through regulation and supervision of food safety.
b) Mentioning granting of food licenses or setting scientific standards are also accurate functions.

(x) Expand the following :
(a) LPO
(b) KPO [2 Marks]

Answer:
(a) LPO: Legal Process Outsourcing
(b) KPO: Knowledge Process Outsourcing

Teacher's Note:
a) Acronyms must be expanded precisely without spelling mistakes.
b) LPO specifically refers to outsourcing legal services, whereas KPO involves knowledge-intensive business processes.

PART II (60 Marks)

Question 2.
(a) Briefly explain the significance of Human Resource Management to an enterprise. [4 Marks]

Answer:
The significance of Human Resource Management (HRM) to an enterprise includes:
1. Procurement of Qualified Personnel: It helps in identifying, recruiting, and selecting the right personnel for various jobs in the organization.
2. Skill Development: HRM conducts regular training and development programs to upgrade employee skills and competencies.
3. Performance Appraisal: It evaluates employee performance objectively to facilitate fair compensation, promotions, and feedback.
4. Maintaining Cordial Relations: It resolves industrial disputes and maintains harmonious labor-management relations, reducing turnover and absenteeism.

Teacher's Note:
a) HRM is vital as human capital is the most critical asset for organizational success.
b) Students should list at least four distinct points with brief explanations for full marks.

(b) Define staff selection. Explain the meaning and relevance of checking references and placement in a selection procedure. [8 Marks]

Answer:
Staff selection is the process of interviewing and evaluating candidates for a specific job and choosing the most suitable individual for employment based on predefined criteria such as qualifications, skills, and experience.

Checking References: The person who gives the reference of a potential employee acts as an important source of information. Referees can provide insights into the applicant's past performance, character, conduct, and professional capabilities. This information is kept confidential by the HR department.
Relevance of Checking References: Reference checking helps confirm the authenticity of details provided in the resume and application form, minimizes hiring risks, and offers insights from people who have actually observed the candidate's work.

Placement: Placement is the process of assigning a specific job and work role to each selected candidate. It involves matching the abilities of the employee with the requirements of the job.
Relevance of Placement: Proper placement ensures that the right person is put on the right job, which reduces employee turnover and absenteeism, minimizes frustration, and improves overall morale and productivity.

Teacher's Note:
a) Ensure both the definition of selection and the dual aspects (meaning and relevance) of both reference checking and placement are covered.
b) Emphasize that a mismatch in placement leads to dissatisfaction and high labor turnover.

Question 3.
(a) What is campus recruitment? How does campus recruitment benefit the students as well as business houses? [4 Marks]

Answer:
Campus recruitment is a recruitment method wherein educational institutions (such as universities and colleges) collaborate with business organizations to provide employment opportunities to students pursuing their academic courses.

Benefits to Business Houses:
1. They get access to a vast pool of young, talented, and qualified applicants within a short time.
2. It saves time and effort in searching for candidates and helps build long-term relationships with educational institutions.

Benefits to Students:
1. Students secure good job offers matching their qualifications even before completing their final academic examinations.
2. It increases their selection ratio and saves them from the hassle of applying individually at multiple places.

Teacher's Note:
a) Clearly define campus recruitment before separately outlining benefits for both parties.
b) Highlight that it bridges the gap between academics and corporate requirements.

(b) Explain any four methods of raising staff morale. [8 Marks]

Answer:
Four methods of raising staff morale are:
1. Monetary Incentives: Providing fair wages, salaries, bonuses, and allowances that enable employees to maintain a decent standard of living and reward higher productivity.
2. Non-Monetary Incentives: Offering welfare facilities such as medical aid, subsidized housing, recreational clubs, and creche facilities to support employees and their families.
3. Job Security: Ensuring stability of employment and providing assurance that services will not be terminated arbitrarily, thereby reducing anxiety and building loyalty.
4. Sound Promotion Policy: Adopting a transparent promotion policy that gives due weightage to both merit and seniority, ensuring fairness and career growth opportunities for all employees.

Teacher's Note:
a) High staff morale leads to higher productivity, lower turnover, and better organizational commitment.
b) Each method must be supported by a clear explanation to secure full marks in an 8-mark question.

Question 4.
(a) What is meant by Induction Training? State any two objectives of this training. [4 Marks]

Answer:
Induction training is the process of introducing and welcoming a newly hired employee to the organization, acquainting them with company policies, procedures, work environment, and fellow colleagues to help them settle down quickly.

Two objectives of induction training are:
1. To reduce the initial anxiety, nervousness, and uncertainty felt by new entrants in an unfamiliar work environment.
2. To familiarize the new employee with the organizational structure, rules, culture, and job expectations.

Teacher's Note:
a) Induction is also known as orientation training.
b) Point out that a good induction program fosters a sense of belonging and accelerates productivity from day one.

(b) Briefly explain any four types of leave that may be availed by an employee. [8 Marks]

Answer:
Four types of leave commonly availed by employees are:
1. Casual Leave (CL): Granted for short periods to attend urgent, unexpected, or personal matters. It usually cannot be accumulated and carried forward indefinitely.
2. Earned Leave (EL) / Privileged Leave (PL): Calculated based on the number of days worked. It can be accumulated and is paid leave meant for planned vacations or extended rest.
3. Medical Leave / Sick Leave: Granted when an employee falls ill or is injured and is unable to attend work. It usually requires a medical certificate from a registered practitioner.
4. Maternity Leave / Paternity Leave: Paid statutory leave granted to female employees around childbirth (maternity) or to male employees to support their newborn/family (paternity).

Teacher's Note:
a) Leave policies form an essential component of employee welfare and labor regulations.
b) Ensure all four types are explained with their specific purposes and conditions.

Question 5.
(a) Write a short note on Situational Leadership. [4 Marks]

Answer:
Situational leadership is an adaptive leadership style where a leader does not adopt a single rigid style of management. Instead, the leader assesses the readiness, maturity level, and specific circumstances of their team members, and accordingly adjusts their leadership approach (such as directing, coaching, supporting, or delegating) to best fit the situation and achieve optimal results.

Teacher's Note:
a) Developed by Paul Hersey and Ken Blanchard, situational leadership emphasizes flexibility.
b) Keywords like 'adaptive', 'maturity of followers', and 'changing circumstances' must be highlighted.

(b) Explain the components of 360 degree appraisal used to appraise staff in an organisation. [8 Marks]

Answer:
360 degree appraisal is a comprehensive performance feedback method where an employee is evaluated by various stakeholders around them. Its four integral components are:
1. Self-Appraisal: The employee evaluates their own performance, strengths, weaknesses, and achievements, fostering self-awareness.
2. Superior's Appraisal: The traditional evaluation method where supervisors or managers rate the employee's performance, target achievement, and responsibilities.
3. Subordinate's Appraisal: Subordinates assess their manager or supervisor on parameters like leadership, communication, delegation of work, and motivating ability.
4. Peer Appraisal: Colleagues working at the same level provide feedback regarding teamwork, cooperation, reliability, and interpersonal behavior.

This method provides a holistic view of the employee's performance, minimizes bias, and ensures high employee involvement.

Teacher's Note:
a) Mentioning all four sources of feedback is mandatory to earn full marks in this question.
b) Explain how multi-source feedback reduces subjective bias compared to traditional one-way appraisals.

Question 6.
(a) State any two advantages and any two disadvantages of merit based promotion. [4 Marks]

Answer:
Advantages of merit-based promotion:
1. Efficiency and competence are directly rewarded, which motivates employees to improve their knowledge and skills.
2. It ensures that the most capable and productive personnel are placed in higher specialized job roles.

Disadvantages of merit-based promotion:
1. It is prone to subjectivity, leading to potential charges of partiality, favoritism, and nepotism by management.
2. Senior employees who are bypassed may feel demoralized and frustrated, potentially leading to industrial unrest or strikes.

Teacher's Note:
a) Merit-based promotion emphasizes performance and ability over length of service.
b) Ensure both advantages and disadvantages are balanced with two distinct points each.

(b) Give any eight distinctions between oral communication and written communication. [8 Marks]

Answer:

Teacher's Note:
a) Students should present at least eight clear comparative points in a tabular format.
b) Key differences such as legal validity, permanence, and feedback speed must be highlighted.

Question 7.
(a) What is meant by retirement? Explain the two types of retirement. [4 Marks]

Answer:
Retirement means withdrawing from one's active working life, occupation, or position. Two main types of retirement are:
1. Superannuation: Retirement taken by an employee upon reaching the mandatory or predetermined age of retirement set by the organization or government.
2. Voluntary Retirement: Retirement taken by an employee voluntarily before reaching the age of superannuation, often accompanied by pensionary benefits or financial packages.

Teacher's Note:
a) Retirement marks the end of active employment and often triggers statutory dues like gratuity and provident fund.
b) Clearly define both superannuation (age-based) and voluntary retirement (choice-based).

(b) With reference to business finance, explain the following: [8 Marks]
(i) Preference shares
(ii) Debentures
(iii) Retained earnings
(iv) Public Deposits

Answer:
(i) Preference Shares: That part of share capital which carries preferential rights over equity shares regarding the payment of a fixed rate of dividend and the repayment of capital upon winding up of the company.

(ii) Debentures: Written acknowledgment of debt issued by a company under its common seal, containing a contract for the repayment of principal after a specified period and regular payment of a fixed rate of interest.

(iii) Retained Earnings: The undistributed profits earned by a company over time that are reinvested back into the business for expansion and contingencies rather than being distributed as dividends.

(iv) Public Deposits: Unsecured short-term or medium-term deposits accepted directly from the general public by companies for periods ranging from 6 months to 5 years at a specified rate of interest.

Teacher's Note:
a) This is a comprehensive finance question covering both owned capital (shares, retained earnings) and borrowed capital (debentures, public deposits).
b) Each sub-term must be defined accurately with its key characteristics.

Question 8.
(a) Explain B2C and C2C as online means of conducting business. [4 Marks]

Answer:
1. Business-to-Consumer (B2C): In this e-business model, business organizations sell their products or services directly to individual consumers via websites. Customers browse products, place orders online, make payments digitally, and receive doorstep deliveries.
2. Consumer-to-Consumer (C2C): In this model, transactions take place directly between consumers through online portals or classified websites (such as OLX or Quikr). It facilitates consumers in selling their personal assets (like cars, used goods, or real estate) or renting property to other consumers.

Teacher's Note:
a) E-business models must be explained with proper real-world examples.
b) Emphasize the parties involved in each transaction (Business to Consumer, Consumer to Consumer).

(b) Briefly explain any four types of reports. [8 Marks]

Answer:
Four types of business reports are:
1. Formal Report: Prepared in a prescribed, structured format following established organizational procedures and submitted to management (e.g., statutory company annual reports).
2. Informal Report: Prepared according to the convenience of the reporter in the form of a letter or memorandum, used for routine, day-to-day person-to-person communication.
3. Special Report: Prepared and presented to top management to address a specific, non-routine issue, problem, or project (e.g., feasibility report for opening a new branch).
4. Technical Report: Prepared to describe the methodology, progress, data, and results of scientific or technical research and complex engineering projects.

Teacher's Note:
a) Reports are crucial communication tools used for decision-making in businesses.
b) Students must explain the purpose and format of each report type clearly.

Question 9.
(a) Discuss any four ways in which globalization has transformed the manner in which business is conducted. [4 Marks]

Answer:
Four ways globalization has transformed business are:
1. Technological Advancement: It enables companies to invest in advanced technologies and modern production methods, raising global quality standards.
2. Foreign Collaboration: It facilitates cross-border joint ventures, mergers, and technological exchanges between foreign and domestic firms.
3. Increased Competition: Exposure to international markets has forced domestic companies to improve product quality and efficiency to survive global competition.
4. Emergence of Multinationals: Many domestic companies have expanded their operations globally, emerging as powerful Multinational Corporations (MNCs) like Tata Motors and Asian Paints.

Teacher's Note:
a) Globalization integrates national economies with the global economy through free flow of trade and capital.
b) Focus on how business practices, competition, and technology have evolved.

(b) Draft a letter of appointment for a school teacher, offering him/her a job of a History teacher in a secondary school. [8 Marks]

Answer:

VIDYA BHAWAN SENIOR SECONDARY SCHOOL
Chandigarh-Delhi Highway
Ambala Cantonment - 133001

March 31, 2019

Ref. No. VB/APT/2019/225

Mr. Khushdeep Verma
3452, Sector 71
Mohali - 160062

Dear Mr. Verma,

This is with reference to your application for the post of History teacher and the subsequent interview held on 15.03.2019. We are pleased to inform you that you have been selected for appointment. Details of emoluments are as under:

Basic Pay: Rs. 12,470/-
Dearness Allowance: 20% of Basic Pay
House Rent: 15% of Basic Pay
CCA: 8% of Basic Pay

You will be on probation for a period of 6 months and your services will be confirmed only on satisfactory completion of probation period.

Please note that services can be terminated from either side by one month's notice during probation period and three months' notice after confirmation.

Please inform your acceptance within a week and report to Mr. Jaskaran, Incharge, Personnel Section on 10 a.m. on any working day failing which your appointment will stand cancelled.

Yours faithfully,
Sidhartha Sharma
Director

Teacher's Note:
a) An appointment letter must include organizational header, reference number, date, clear job title, salary breakdown, probation period, and reporting instructions.
b) Formal letter layout and professional tone are essential for scoring full marks in commercial correspondence.