ISC Class 12 Business Studies Board Exam Question Paper 2024 with Solutions

ISC Class 12 Business Studies Board Exam Question Paper with Solutions 2024

SECTION A - 16 MARKS

Question 1

(i) Name the leadership style that enables quick decision making. [1 Mark]

Answer:
Autocratic leadership

Teacher's Note:
a) Autocratic leadership vests all decision making power in the leader, allowing for rapid execution without the need for group consensus.
b) Students must remember that while this style ensures speed, it often lowers employee morale and stifles creativity.

(ii) Sneha works in a private company and has to report to office. According to the company's policy, she is allowed to report to office as per her convenience. However, she needs to complete a set number of hours in office per week. Identify the emerging trend in Human Resources as exhibited in the above situation. [1 Mark]

Answer:
Flexible working / Flexi time

Teacher's Note:
a) Flexi time allows employees to choose their working hours within agreed limits, balancing personal and professional commitments.
b) This modern human resource practice is known to enhance job satisfaction and reduce absenteeism.

(iii) Which method of Performance Appraisal reduces the bias on the part of raters so that ratings are not concentrated in a particular area on the rating scale? [1 Mark]

Answer:
Merit grading system

Teacher's Note:
a) Merit grading or forced distribution helps eliminate central tendency and leniency biases in rating.
b) Ensure you distinguish between rating scale errors such as central tendency, halo effect, and strictness.

(iv) Give the expanded form of SMTs. [1 Mark]

Answer:
Self-managing teams

Teacher's Note:
a) Self-managing teams are groups of employees who take on responsibilities traditionally handled by supervisors.
b) Write the full expansion accurately without spelling errors to secure full marks.

(v) Human Resource Management is ____________ in nature as it involves the application of knowledge from Sociology, Anthropology, Psychology, Economics, etc. [1 Mark]

Answer:
Interdisciplinary

Teacher's Note:
a) HRM draws theories and concepts from multiple behavioural and social sciences to understand employee behavior.
b) Keywords like interdisciplinary highlight the multi-faceted nature of modern personnel management.

(vi) As per the Companies Act, a Public Limited Company should have a minimum number of ____________ shareholders. [1 Mark]

Answer:
Seven

Teacher's Note:
a) Under company law provisions, a public limited company requires a minimum of seven members and has no maximum limit.
b) Do not confuse the minimum member requirements of private companies (two) with public companies (seven).

(vii) ____________ refers to commercial transactions done via internet wherein goods or services are delivered in an electronic or a tangible form. [1 Mark]

Answer:
e-commerce

Teacher's Note:
a) Electronic commerce encompasses buying and selling of goods, services, and funds over digital networks.
b) Be precise with terms like e-commerce versus e-business; e-commerce specifically denotes commercial transactions.

(viii) ____________ is the cheapest and fastest means of electronically transmitting written messages which can also be used as legal evidence. [1 Mark]

Answer:
e-mails

Teacher's Note:
a) Electronic mail provides rapid, documented communication essential for corporate operations.
b) Legal admissibility of emails makes them reliable records in commercial disputes.

(ix) Which one of the following is NOT a part of Job Specification? [1 Mark]
(A) Job Title
(B) Job Experience
(C) Physical Appearance
(D) Communication Skills

Answer: (A) Job Title

Job Title is part of a Job Description, not Job Specification.

Teacher's Note:
a) Job specification details the human attributes, qualifications, and skills needed, whereas job description details job tasks.
b) Always read negative questions carefully to avoid selecting features that belong to the opposite concept.

(x) The Security Guard of ABC Limited submits a report to the authorities on an incident of theft in the premises of the organisation. This report is an example of: [1 Mark]
(A) Interpretative, Private, Statutory, and Periodic Report.
(B) Informational, Public, Statutory, and Periodic Report.
(C) Informational, Private, Non-Statutory, and Special Report.
(D) Interpretative, Public, Non-Statutory, and Periodic Report.

Answer: (C) Informational, Private, Non-Statutory, and Special Report.

The report provides information on a specific incident, is for internal use, not mandated by law, and addresses a unique event.

Teacher's Note:
a) Special reports are prepared for specific non-routine occurrences like accidents or thefts.
b) Non-statutory reports are not legally compulsory under any statute.

(xi) Which one of the following types of transfers is done to stabilise employment when a particular department/branch of an organisation is understaffed? [1 Mark]
(A) Production Transfer (B) Remedial Transfer
(C) Versatility Transfer (D) Replacement Transfer

Answer: (A) Production Transfer

Production transfers occur to move surplus staff to departments facing a shortage of personnel.

Teacher's Note:
a) Production transfers help maintain continuous workflow and avoid layoffs during fluctuations in workload.
b) Differentiate production transfers from remedial and replacement transfers based on their primary organizational objectives.

(xii) Assertion: Piece Rate system of wage payment is suitable when the work is repetitive in nature and the output can be measured.
Reason: Piece Rate system can cause insecurity among the workers as minimum wage is not guaranteed. [1 Mark]
(A) Both Assertion and Reason are true, and Reason is the correct explanation for Assertion.
(B) Both Assertion and Reason are true, but Reason is not the correct explanation for Assertion.
(C) Assertion is true and Reason is false.
(D) Both Assertion and Reason are false.

Answer: (B) Both Assertion and Reason are true, but Reason is not the correct explanation for Assertion.

Both statements are individually correct facts about the piece-rate wage system, but the reason does not explain why it is suitable for repetitive work.

Teacher's Note:
a) Piece rate links earnings directly to output, making it ideal for standardized, repetitive tasks.
b) Workers often feel insecure regarding their earnings under this system due to fluctuations in output.

(xiii) State whether the following are True or False.
(a) The first step in the procedure for dismissal of an employee is to seek an explanation from the employee on their conduct. [1 Mark]

Answer:
False

Teacher's Note:
a) The preliminary step in formal dismissal procedures is issuing a charge sheet outlining the misconduct.
b) Natural justice requires proper inquiry before taking adverse employment actions.

(b) SEBI regulates the securities market in India. [1 Mark]

Answer:
True

Teacher's Note:
a) Securities and Exchange Board of India is the statutory regulatory body for the securities market.
b) Its primary role is to protect investor interests and promote orderly market development.

(c) Refresher training is a type of training where the existing employees are trained in the latest methods and techniques of doing their work. [1 Mark]

Answer:
True

Teacher's Note:
a) Refresher training updates veteran employees on technological advancements and updated operational techniques.
b) It prevents obsolescence of employee skills over time.

(d) Globalisation has increased employment opportunities all over the world. [1 Mark]

Answer:
True

Teacher's Note:
a) Globalization integrates national economies, fostering cross-border investments and job creation.
b) It expands markets for businesses, leading to scaling of operations and higher employment.

SECTION B - 32 MARKS

Question 2

(i) Cost of training is a major hindrance to a good training programme. State any two hindrances to training other than the cost. [2 Marks]

Answer:
1. Lack of management support where top management views training as a waste of time and money.
2. Non-availability of qualified trainers to impart effective skill-based training.

Teacher's Note:
a) Hindrances reduce the effectiveness or implementation of training initiatives.
b) Give two distinct points clearly to fetch full credit.

(ii) Briefly explain any two benefits of a training programme to the employer. [2 Marks]

Answer:
1. Increased productivity: It enhances employee productivity both in terms of quantity and quality, leading to higher profits.
2. Reduced turnover: Training increases employee morale and reduces absenteeism and employee turnover.

Teacher's Note:
a) Focus on organizational benefits rather than employee benefits when answering this sub-part.
b) Mention headings and give brief explanations.

OR

(i) Discuss the following staff benefits:
(a) Group Insurance [2 Marks]

Answer:
Group Insurance provides comprehensive coverage including health, life, and disability insurance, often at lower costs due to pooling risks. It benefits both employees and employers by enhancing employee well-being.

Teacher's Note:
a) Group insurance acts as a valuable welfare measure offered by employers.
b) State its core advantage of cost efficiency through risk pooling.

(b) Gratuity [2 Marks]

Answer:
Gratuity is a monetary benefit given by the employer to an employee who leaves the employment or retires after working for five years or more.

Teacher's Note:
a) Gratuity is governed by statutory regulations like the Payment of Gratuity Act in India.
b) Mention the eligibility period of continuous service.

Question 3

(i) Give any two differences between Performance Appraisal and Potential Appraisal. [2 Marks]

Answer:

Teacher's Note:
a) Use a tabular format for difference questions to ensure clarity.
b) Focus on the time orientation and core objective differences.

(ii) Explain the concept of situational leadership. [2 Marks]

Answer:
Situational leadership is an approach where leadership style depends on the specific situation, including the nature of tasks, employee maturity, and follower readiness, rather than a single fixed style.

Teacher's Note:
a) Effective leaders adapt their behavior to match the readiness level of their subordinates.
b) Mention that no single leadership style is optimal across all situations.

Question 4

(i) State any four limitations of Promotion. [4 Marks]

Answer:
1. Skill and Knowledge Gap: Promoted employees may lack necessary skills for new roles, leading to performance issues.
2. Lethargy from Seniority-based Promotions: Relying solely on seniority can breed complacency and lower motivation.
3. Potential Talent Shortfall: Internal promotions narrow the talent pool, missing out on external expertise.
4. Favouritism and Lack of Clear Policy: Without transparent rules, favouritism can occur, undermining employee morale.

Teacher's Note:
a) List four distinct limitations clearly with headings and explanations.
b) Contrast internal promotion drawbacks with external hiring limitations.

OR

(ii) State any four ways in which globalisation has transformed the manner in which business is conducted. [4 Marks]

Answer:
1. Dominance of Multinationals: Facilitated the rise of multinational corporations establishing market dominance globally.
2. Liberalization of Foreign Investment: Spurred countries to liberalize FDI policies, fostering cross-border capital flows.
3. Growing Competition: Intensified market competition as businesses strive to compete globally.
4. Globalization of Markets: Standardized products are marketed worldwide, reducing dumping of substandard goods.

Teacher's Note:
a) Globalisation breaks down international trade barriers.
b) State four points with appropriate business terminology.

Question 5

Observe the picture given below and answer the questions that follow:

[Figure: A cartoon illustration showing a manager saying "Well done Mr. Roy!" and an employee saying "Finally! I have achieved it.", with a speech bubble from a colleague saying "Superb! I'm really happy for you."]

(i) Identify the factor indicated in the above image as per the Two-factor theory of Herzberg. [1 Mark]

Answer:
Motivational factor

Teacher's Note:
a) Recognition and achievement are intrinsic motivators under Herzberg's theory.
b) Distinguish clearly between hygiene factors and motivators.

(ii) Which need of Ms. Roy is being satisfied as per Maslow's Hierarchy of Human Needs? [1 Mark]

Answer:
Esteem need

Teacher's Note:
a) Esteem needs involve self-respect, recognition, and status.
b) Achievement and praise directly fulfill psychological esteem requirements.

(iii) Briefly explain the need of Ms. Roy that is being satisfied. [2 Marks]

Answer:
Esteem needs reflect the desire for recognition, respect, and a positive self-image. Fulfillment of these needs fosters feelings of competence, achievement, and self-worth.

Teacher's Note:
a) Define esteem needs accurately based on Maslow's model.
b) Connect recognition with psychological well-being.

Question 6

(i) What is meant by compulsory retirement? [2 Marks]

Answer:
Compulsory retirement refers to the practice of requiring employees to retire from their positions once they reach a certain age or tenure, as mandated by organisational policies or legal regulations.

Teacher's Note:
a) It helps manage workforce demographics and create opportunities for younger personnel.
b) Emphasize that it is enforced by company rule or statutory requirement.

(ii) Briefly explain the concept of permanent part time as an emerging trend in Human Resources. [2 Marks]

Answer:
Permanent part-time work is an emerging trend where employees work fewer hours than full-time employees but enjoy permanent employee status and pro-rated benefits, offering flexibility to both parties.

Teacher's Note:
a) This arrangement helps balance organizational staffing needs with work-life balance for employees.
b) Mention pro-rated benefits to distinguish it from casual labor.

Question 7

(i) With reference to a Report, explain appendix. State its role in a good report. [2 Marks]

Answer:
An appendix is a list of statistical data, graphs, questionnaires, or witness lists given at the end of a report. Its role is to support the contents of the report without cluttering the main text.

Teacher's Note:
a) Appendices house supplementary information that aids deeper understanding.
b) Keep the main report concise by shifting bulky data to the appendix.

(ii) Expand BIS. State any one role of BIS. [2 Marks]

Answer:
Bureau of Indian Standards.
Role: Boosting customer confidence by ensuring products adhere to established quality criteria through certification.

Teacher's Note:
a) BIS formulates Indian standards and operates certification schemes.
b) Write the exact expansion and one precise function.

Question 8

(i) Quite a few organizations outsource services instead of hiring people as a permanent staff. State any two advantages and any two disadvantages of this practice to the outsourcer. [4 Marks]

Answer:
Advantages:
1. Cost Savings: Outsourcing often leads to lower costs as service providers operate from lower cost locations.
2. Focus on Core Activities: By outsourcing non-core activities, companies can focus on core business functions.
Disadvantages:
1. Loss of Control: May result in loss of control over outsourced activities, impacting quality and timeliness.
2. Communication and Coordination Challenges: Managing outsourced relationships requires effective communication across locations.

Teacher's Note:
a) Clearly separate advantages and disadvantages with proper headings.
b) Focus on organizational impacts such as cost and operational control.

Question 9

Briefly explain the following online means of conducting business:
(i) Intra B [2 Marks]

Answer:
Intra B refers to online business transactions conducted between businesses where one business entity interacts and transacts with another business entity through digital platforms, such as purchasing raw materials.

Teacher's Note:
a) B2B transactions streamline supply chains and inter-firm interactions.
b) Give a clear business-to-business transaction example.

(ii) G2B [2 Marks]

Answer:
G2B refers to online interactions and transactions between government agencies and businesses, such as issuing licenses, paying taxes, and filing regulatory compliance information through digital platforms.

Teacher's Note:
a) Government-to-Business portals improve administrative efficiency and transparency.
b) Emphasize the interaction between public authorities and corporate entities.

SECTION C - 32 MARKS

Question 10

Briefly explain the following sources of finance:
(i) Equity Shares [2 Marks]

Answer:
Equity shares represent ownership in a company and entitle shareholders to a portion of the company's profits and voting rights in corporate decisions, bearing the risk of fluctuations in profitability.

Teacher's Note:
a) Equity capital is permanent risk capital for companies.
b) Mention voting rights and ownership characteristics.

(ii) Debentures [2 Marks]

Answer:
Debentures are debt instruments issued by companies to raise funds, obligating them to repay investors the principal amount with fixed interest, offering long-term financing without diluting ownership.

Teacher's Note:
a) Debenture holders are creditors, not owners, of the company.
b) Highlight the fixed return and absence of voting rights.

(iii) Trade Credit [2 Marks]

Answer:
Trade credit allows businesses to buy goods or services on credit from suppliers, providing short-term financing without immediate cash outlay, helping manage cash flow.

Teacher's Note:
a) It is a spontaneous source of finance arising from routine business operations.
b) Mention short-term credit availability from suppliers.

(iv) Venture Capitalist [2 Marks]

Answer:
Venture capitalists invest in startups and early-stage companies in exchange for equity, providing capital and expertise for high-growth ventures while demanding significant equity stakes.

Teacher's Note:
a) Venture capital supports high-risk, innovative business ideas.
b) Mention equity participation and managerial guidance.

Question 11

(i) Draw Morale-Productivity Matrix. By referring to the matrix, discuss any three situations to show the relation between Morale and Productivity. [8 Marks]

Answer:
Matrix structure description:
- High Morale, High Productivity: Optimal scenario where employees exhibit both high morale and productivity.
- High Morale, Low Productivity: Employees maintain high morale despite low productivity, indicating potential hurdles like resource scarcity.
- Low Morale, High Productivity: Employees demonstrate high productivity despite low morale, suggesting issues like excessive workload.
(Three situations explained):
1. High Morale, High Productivity: Sustained by investments in employee engagement.
2. High Morale, Low Productivity: Requires identifying root causes and addressing resource gaps.
3. Low Morale, High Productivity: Requires corrective action to prevent burnout and turnover.

Teacher's Note:
a) Draw a clear quadrant matrix showing morale on one axis and productivity on the other.
b) Explain the behavioural dynamics of employees in each quadrant.

OR

(i) Name and explain the two sources of e-Recruitment. [4 Marks]

Answer:
1. Internet: External source of recruitment where job vacancies are advertised on job portals (e.g., naukri.com) or employer websites.
2. Intranet: Internal platform posting job vacancies exclusively to employees within the organization, encouraging employee referrals.

Teacher's Note:
a) Distinguish between internet (external) and intranet (internal) e-recruitment platforms.
b) State how each source functions in talent acquisition.

(ii) What is meant by staff selection? Give any two reasons to justify that it is a negative process. [4 Marks]

Answer:
Staff Selection is the process of careful screening of available candidates to choose the most suitable ones.
Reasons why it is a negative process:
1. Exclusionary Nature: Involves rejecting candidates who do not meet specific criteria, leading to feelings of rejection.
2. Potential for Bias: Unconscious biases in selection can lead to discriminatory outcomes and exclusion of qualified candidates.

Teacher's Note:
a) Selection rejects more candidates than it selects, earning it the label of a negative process.
b) Contrast recruitment (positive) with selection (negative).

Question 12

(i) Anupriya Sports Store wants to place an order for the following sports equipment from Devesh Enterprise:
- 10 Cricket Bats at Rs. 2000 each
- 30 Cricket Balls at Rs. 300 each
- 20 Hockey Sticks at Rs. 1000 each
- 10 Hockey Balls at Rs. 300 each
Draft an Order Letter on behalf of Anupriya Sports Store. [8 Marks]

Answer:
Anupriya Sports Store
[Address Line 1]
[Address Line 2]
[City, State, Zip Code]

Date: February 29, 2024
Devesh Enterprises
[Address Line 1]
[Address Line 2]
[City, State, Zip Code]

Dear Sir/Madam,

Subject: Purchase Order for Sports Equipment

We hope this letter finds you well. Anupriya Sports Store is interested in placing an order for the following sports equipment from your esteemed company, Devesh Enterprises:
(i) 10 Cricket Bats at Rs. 2000 each
(ii) 30 Cricket Balls at Rs. 300 each
(iii) 20 Hockey Sticks at Rs. 1000 each
(iv) 10 Hockey Balls at Rs. 300 each

We have been consistently impressed with the quality and durability of your products and believe that they align perfectly with the needs and preferences of our customers.

Please find enclosed a Purchase Order Form detailing the quantity and prices of the items requested. We kindly request that you process this order at your earliest convenience and provide us with an estimated delivery date. Additionally, we would appreciate it if you could confirm the total amount due, including any applicable taxes and shipping charges, along with your accepted payment methods.

Should you require any further information or clarification regarding this order, please do not hesitate to contact us at 7983XXXXXX or xyz@gmail.com.

We value the opportunity to continue our business relationship with Devesh Enterprises and look forward to receiving the requested sports equipment promptly.

Thank you for your attention to this matter.

Yours sincerely,

Name _____________
Position _____________
Anupriya Sports Store

Enclosure: Purchase Order Form

Teacher's Note:
a) Ensure all standard business letter formatting rules (sender address, date, receiver address, subject, salutation, body, and complimentary close) are followed.
b) Verify item descriptions and calculations match the question prompt accurately.

Question 13

Read the passage given below and answer the questions that follow:

Annie and Naveen are fresh Engineering graduates who have been appointed by Scottish Automobile Ltd. Equipped with the latest information, Annie wants to introduce some changes in the production of automobiles. She is hesitant to discuss her ideas with her superior, Mr. Shah. Hence, she discusses it with Naveen. Annie and Naveen make a power point presentation based on Annie’s ideas. On behalf of Annie, Naveen presents it to Mr. Shah, in the monthly review meeting.

(i) Identify the barrier to communication that exists between Annie and Mr. Shah. [1 Mark]

Answer:
Personal barrier (lack of confidence/hesitance to speak to superior)

Teacher's Note:
a) Annie's hesitation stems from personal psychological factors and hierarchical reluctance.
b) Correctly categorize communication barriers into personal, organizational, semantic, or psychological types.

(ii) Suggest any three ways in which the barrier to communication between Annie and Mr. Shah can be overcome. [3 Marks]

Answer:
1. Gather more knowledge about a subject to gain confidence in the material.
2. Increase awareness to improve decision-making and reduce barriers to effective communication.
3. Pay attention to details and long-term success to understand nuances and contexts.

Teacher's Note:
a) Suggest practical measures for overcoming personal communication hurdles.
b) List three clear, distinct points.

(iii) Name and explain the type of communication between:
(a) Annie and Naveen. [2 Marks]

Answer:
Horizontal communication refers to the exchange of information, ideas, and messages among individuals or departments at the same hierarchical level within an organization.

Teacher's Note:
a) Peers communicating across similar organizational levels engage in horizontal communication.
b) Define horizontal communication concisely.

(b) Naveen and Mr. Shah. [2 Marks]

Answer:
Vertical communication refers to the flow of information, directives, and feedback between different levels of authority within an organizational hierarchy, moving either upward or downward.

Teacher's Note:
a) Communication between a subordinate and superior represents vertical communication.
b) Distinguish clearly between upward and downward vertical communication flows.