-Strictly Confidential: (For Internal and Restricted Use Only)

Senior School Certificate Examination

March -----2023
Marking Scheme---Business Studies 66/1/1, 66/1/2, 66/1/3
General Instructions:
1 You are aware that evaluation is the most important process in the actual and correct
assessment of the candidates. A small mistake in evaluation may lead to serious
problems which may affect the future of the candidates, education system and
teaching profession. To avoid mistakes, it is requested that before starting evaluation,
you must read and understand the spot evaluation guidelines carefully.
2 “Evaluation policy is a confidential policy as it is related to the confidentiality of
the examinations conducted, Evaluation done and several other aspects. Its’
leakage to public in any manner could lead to derailment of the examination
system and affect the life and future of millions of candidates. Sharing this
policy/document to anyone, publishing in any magazine and printing in News
Paper/Website etc may invite action under various rules of the Board and IPC.”
3 Evaluation is to be done as per instructions provided in the Marking Scheme. It
should not be done according to one’s own interpretation or any other consideration.
Marking Scheme should be strictly adhered to and religiously followed. However,
while evaluating, answers which are based on latest information or knowledge
and/or are innovative, they may be assessed for their correctness otherwise and
due marks be awarded to them.
4 The Marking scheme carries only suggested value points for the answers
These are in the nature of Guidelines only and do not constitute the complete answer.
The students can have their own expression and if the expression is correct, the due
marks should be awarded accordingly.
5 The Head-Examiner must go through the first five answer books evaluated by each
evaluator on the first day, to ensure that evaluation has been carried out as per the
instructions given in the Marking Scheme. If there is any variation, the same should
be zero after delibration and discussion. The remaining answer books meant for
evaluation shall be given only after ensuring that there is no significant variation in
the marking of individual evaluators.
6 Evaluators will mark( √ ) wherever answer is correct. For wrong answer CROSS ‘X”
be marked. Evaluators will not put right (✓)while evaluating which gives an
impression that answer is correct and no marks are awarded. This is most common
mistake which evaluators are committing
7 If a question has parts, please award marks on the right-hand side for each part.
Marks awarded for different parts of the question should then be totaled up and
written in the left-hand margin and encircled. This may be followed strictly.
8 If a question does not have any parts, marks must be awarded in the left-hand margin
and encircled. This may also be followed strictly
9 If a student has attempted an extra question, answer of the question deserving more
marks should be retained and the other answer scored out with a note “Extra
Question”.

1
10 No marks to be deducted for the cumulative effect of an error. It should be penalized
only once.
11 A full scale of marks __________(example 0 to 80/70/60/50/40/30 marks as given in
Question Paper) has to be used. Please do not hesitate to award full marks if the
answer deserves it.
12 Every examiner has to necessarily do evaluation work for full working hours i.e., 8
hours every day and evaluate 20 answer books per day in main subjects and 25
answer books per day in other subjects (Details are given in Spot Guidelines).
13 Ensure that you do not make the following common types of errors committed by the
Examiner in the past:-
● Leaving answer or part thereof unassessed in an answer book.
● Giving more marks for an answer than assigned to it.
● Wrong totaling of marks awarded on an answer.
● Wrong transfer of marks from the inside pages of the answer book to the title
page.
● Wrong question wise totaling on the title page.
● Wrong totaling of marks of the two columns on the title page.
● Wrong grand total.
● Marks in words and figures not tallying/not same.
● Wrong transfer of marks from the answer book to online award list.
● Answers marked as correct, but marks not awarded. (Ensure that the right tick
mark is correctly and clearly indicated. It should merely be a line. Same is with
the X for incorrect answer.)
Half or a part of answer marked correct and the rest as wrong, but no marks awarded.
14 While evaluating the answer books if the answer is found to be totally incorrect, it
should be marked as cross (X) and awarded zero (0)Marks
15 Any unassessed portion, non-carrying over of marks to the title page, or totaling
error detected by the candidate shall damage the prestige of all the personnel
engaged in the evaluation work as also of the Board. Hence, in order to uphold the
prestige of all concerned, it is again reiterated that the instructions be followed
meticulously and judiciously
16 The Examiners should acquaint themselves with the guidelines given in the
“Guidelines for spot Evaluation” before starting the actual evaluation.
17 Every Examiner shall also ensure that all the answers are evaluated, marks carried
over to the title page, correctly totaled and written in figures and words.
18 The candidates are entitled to obtain photocopy of the Answer Book on request on
payment of the prescribed processing fee. All Examiners/Additional Head
Examiners/Head Examiners are once again reminded that they must ensure that
evaluation is carried out strictly as per value points for each answer as given in the
Marking Scheme

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66 MARKING SCHEME– 2023
/1 BUSINESS STUDIES Marks
/3 66/1/3
EXPECTED ANSWERS / VALUE POINTS

1 Q. Which of the following statements does not highlight

the importance of financial planning?

(a ) Detailed plans of action prepared under financial

planning increase waste, duplication of efforts and gaps
in planning.
(b) It helps in forecasting what may happen in future
under different business situations
(c) It provides a link between investment and financing
decisions on a continuous basis.
(d) It helps in avoiding business shocks and surprises
and helps the company in preparing for the future

Ans (a)
Detailed plans of action prepared under financial planning 1 mark
increase waste, duplication of efforts and gaps in planning.
2 Q. ‘Roma Ltd’ identified the needs of the customers for
the successful marketing of their products. This was
important for making an analysis of the available
opportunities, threats, weaknesses and strengths of the
organisation and help in deciding what opportunities
can best be pursued by it.
By doing so, which of the following functions of
marketing is being performed by ‘Roma Ltd'?

(a) Standardisation and grading

(b) Product designing and development
(c) Marketing planning

3
 (d) Gathering and analysing market information

Ans (d)
Gathering and analysing market information 1 mark
3 Q.______________ refers to the downward transfer of
authority from a superior to a subordinate.

(a) Organising
(b) Decentralisation
(c) Accountability
(d) Delegation

Ans (d) 1 mark

Delegation
4 Q. During the Covid-19 pandemic, the restaurant
industry faced many challenges. The slowdown led to
huge decrease in demand. From April 2022, the effect of
Covid started reducing. The economy started picking
up and a boom was noticed in the restaurant industry.
As a result, larger amount of working capital was
required with increased production and sales.
The factor affecting the working capital requirement
discussed above is:
(a) Seasonal factor
(b) Production cycle
(c) Operating efficiency
(d) Business cycle

Ans (d)
Business Cycle 1 mark

5 Q. Adapting to a change in consumer preference

towards online shopping. Fast-Service' started a
grocery delivery app. It is a platform that ensures 10-
minute deliveries of groceries. Because of this service,
Fast-Service earned huge profit within a year. It
planned to expand its operations and decided to raise
funds by directly issuing its securities to investors.
The market through which Fast-Service' has decided to
4
 raise funds for its expansion is :
(a) Money market
(b) Primary market
(c) Secondary market
(d) Both Primary and Secondary markets

Ans (b)
Primary market 1 mark
6 Q. ‘Capital Market instruments are riskier both with
respect to returns and principal repayment as
compared to Money Market instruments.’
This highlights the following point of difference
between ‘Capital Market' and 'Money Market':
(a) Instruments
(b) Duration
(c) Safety
(d) Liquidity

Ans (c)
Safety 1 mark

7 Q.

The symbol which appears on all the ‘Elegant' cars and

which is not utterable is known as its:
(a) Brand
(b) Brand name
(c) Brand mark
(d) Trade mark

Ans (c) 1 mark

Brand mark
8 Q. ‘A good physical distribution system should provide
for an accurate and speedy processing of orders in the

5
 absence of which goods will reach the customers late or
in wrong quantity.’
The component of physical distribution highlighted
above is:
(a) Warehousing
(b) Order Processing
(c) Transportation
(d) Inventory Control

Ans (b)
Order Processing 1 mark

9 Q. ________ involves a variety of programmes

designed to promote or protect a company's image and
its individual products in the eyes of the public.
(a) Personal selling
(b) Public relations
(c) Sales promotion
(d) Advertising

Ans (b)
Public relations 1 mark
10 Q. ‘Coordination integrates the efforts of different
departments and at different levels’.
Identify the characteristic of coordination highlighted
in the above statement.
(a) Coordination ensures unity of action.
(b) Coordination is an all pervasive function.
(c) Coordination is a deliberate function.
(d) Coordination is the responsibility of all managers.

Ans (b) 1 mark

Coordination is an all pervasive function.

11 Q. The process of defining and grouping the activities of

the enterprise and establishing authority relationship
among them is :

(a) Directing
(b) Staffing

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 (c) Management
(d) Organising

Ans (d)
Organising 1 mark
12 Q. Which of the following are the examples of Legal
Environment ?

(i) Advertisement of alcoholic beverages is prohibited

(ii) Decrease in interest rate on loans
(iii) Increase in demand for organic foods
(iv) Digilockers for storing documents
(v) In 1993, the Supreme Court passed an order to close
the iron foundries around ‘Taj Mahal' at Agra
(a) (i) and (iv)
(b) (i) and (ii)
(c) (ii) and (iii)
(d) (i) and (v)

Ans (d)
(i) and (v) 1 mark
13 Q. Which of the following is not a step in the process of
'Controlling' function of management ?

(a) Setting performance standards

(b) Assignment of duties
(c) Taking corrective action
(d) Comparing actual performance with standards

Ans (b)
Assignment of duties 1 mark
14 Q. Statement I: Management is multi-dimensional.

Statement II : The activities involved in managing an

enterprise are common to all organisations whether
economic, social or political.
Choose the correct option from the options given below:
(a) Statement I is true and II is false
(b) Statement II is true and I is false.
(c) Both the statements are false.

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 (d) Both the statements are true.

Ans (d)
Both the statements are true
1 mark
15 Q. Umang was working as a ‘Production Manager' at
‘LG Papers Ltd.’ The company had launched new eco-
friendly paper straws in the market. He was given a
target of producing 5,000 straws a day, by the General
Manager. In spite of making the employees work
overtime, Umang could not meet the target.
On investigation, it was found that the employees had
not received the right training to manufacture these
eco-friendly paper straws. So the employees were sent
for special training.
The function of management which helped Umang in
identifying that he could not meet the target is:

(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Ans (d)
Controlling 1 mark

16 Q. Match the various characteristics of Business

environment given in Column I with their respective
explanations in Column II:
Column I Column II
A. Dynamic nature (i) Environment is a phenomenon
that is relatively easier to
understand in parts but difficult to
grasp in its totality.

B. Complexity (ii) Business environment differs

from country to country and even
region to region.

C. Relativity (iii) Business environment keeps on

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 changing, whether in terms of
technological improvement or
shifts in consumer preferences.

(a) A- (iii), B-(ii), C-(i)

(b) A-(ii,) B- (iii), C-(i)
(c) A-(iii,) B-(i), C-(ii)
(d) A-(i), B-(ii), C-(iii)

Ans (c) 1 mark

A-(iii), B-(i), C-(ii)
17 Q. Management has its own vocabulary of terms and
concepts. Managers need to communicate with one
another with the help of a common vocabulary for the
better understanding of their work situation.
Which characteristic of 'Management as a Science’ is
highlighted in the above statement ?
(a) Principles based on experimentation
(b) Systematised body of knowledge
(c) Universal validity
(d) Personalised application

Ans (b) 1 mark

Systematised body of knowledge
18 Q. __________as an element of marketing mix includes
the activities that make the firm's products available to
the target customers.
(a) Promotion
(b) Place
(c) Product
(d) Price

Ans (b)
Place 1 mark
19 Q. Sangeeta visited 'Smile Dental Clinic’ for treatment
of toothache. She observed that the receptionist was
seated at the reception desk, the place fixed for her.
Dental instruments were laid neatly in dental
instrument trays and the used instruments were placed

9
 in the sterilisation area. There was a fixed place for
everything and it was present there. There was no
hindrance in the work of the dentist and he was
working with her maximum efficiency.
The principle of management followed at the Smile
Dental Clinic was :
(a) Equity
(b) Discipline
(c) Order
(d) Initiative

Ans (c) 1 mark

Order
20 Q. ‘Alfanzo Ltd' is achieving all its objectives in an
effective and efficient manner. It is earning enough
revenue to cover costs and the risks of the business.
Now the company wants to increase the sales volume,
the capital investment, the number of employees and
the number of products also.
By doing this, the management wants to achieve its
following objective :
(a) Survival
(b) Profit
(c) Personal
(d) Growth

Ans (d)
Growth 1 mark
21 Q. (a)

(i) Name the process of holding securities in an

electronic form.

(ii) Name any two participants of Money Market.

(iii) Name the depositories that hold securities in

electronic form.

Ans (a)
(i) Dematerialisation
1 mark+
10
(ii) RBI, Commercial Banks, NBFCs, State Governments,
Large Corporate Houses, Mutual Funds. (Any two) 1/2x2=1+

(iii) National Securities Depositories Limited (NSDL) and

Central Depository Services Limited (CDSL) 1/2x2=1
=3marks

OR
Q. (b) State any three factors affecting the dividend
decision.

Ans (b)
Factors affecting dividend decision are (Any three):
(i) Amount of earnings are a major determinant of dividend
decision as dividends are paid out of current and past
earnings.
(ii) Stability of earnings is another factor affecting dividend 1x3
decision as a company having stable earnings is in a
position to declare higher dividends. =
(iii) Companies generally prefer to maintain stability of
dividends while taking dividend decision.
(iv) If a company has good growth opportunities, it pays
out less dividend.
(v) A good cash flow position is necessary for declaration
of dividend.
(vi) Shareholders’ preference is kept in mind by the
management before declaring dividends. 3 marks
(vii) Taxation policy affects the dividend decision as a
higher dividend distribution tax will lead to lesser dividend
payout.
(viii) The possible stock market reaction of dividend policy
on the share price is one of the important factors affecting
dividend decision.
(ix) While taking dividend decision, companies take into
consideration their access to capital market.
(x) Certain provisions of the Companies Act i.e. legal
constraints place restrictions on payout of dividend.
(xi) While taking dividend decision, companies keep in
mind the restrictions imposed by the lenders i.e. contractual
constraints.
(If the examinee has listed the points only, ½ mark each to

11
 be awarded)
22 Q. Hitesh is the Chief Executive Officer of ‘Kids
Garments Ltd.’ Due to festive season, Hitesh got an
additional order of 10,000 garments which he had to
supply within two days, Due to his goodwill in the
market, he did not want to lose the order, So, he
decided to achieve the target by operating on double
shifts. He achieved the target and supplied the order
within two days. But due to double shifts, his cost of
production was higher than the regular production cost.
Identify and give the meaning of the two concepts of
management discussed in the above para.

Ans.
Efficiency and Effectiveness 1/2x2=1
Efficiency means doing the task correctly and with
minimum cost. +1 mark
Effectiveness is concerned with doing the right task, +
completing activities and achieving goals.
1 mark
(Or any other suitable meaning) =
3 marks
23 Q. ‘The attitudes, skills and abilities of employees to
perform specific jobs are increased by adopting a
specific process.’ This process benefits the organisation
in many ways.
State any three benefits of this process to the
organisation.

Ans
Benefits of training to the organisation : (Any 3)
(i) Training is a systematic learning, always better
than hit and trial methods which lead to wastage
of efforts and money.
1x3
(ii) It enhances employee productivity both in =
terms of quantity and quality, leading to higher
profits.

12
 (iii) Training equips the future manager who can take
3 marks
over in case of emergency.
(iv) Training increases employee morale and reduces
absenteeism and employee turnover.
(v) It helps in obtaining effective response to fast
changing environment.
(If the examinee has listed the points only, ½ mark each to
be awarded)
24 Q. (a) Explain the following methods of training:
(i) Vestibule training
(ii) Internship training

Ans (a) Vestibule training

• Employees learn their jobs on the equipment they
will be using, away from the actual work floor.
• This is usually done when employees are required to
handle sophisticated machinery and equipment
1½+1½
(b) Internship training
• It is a joint programme of training in which =
educational institutions and business firms
cooperate.
• Selected candidates carry on regular studies as 3 marks
well as work in some factory or office to acquire
practical knowledge and skills.
OR
(b) Explain any three advantages of external sources of
recruitment.

Ans (b) Advantages of external sources of recruitment:

(Any three)
(i) Qualified Personnel: The management can attract
qualified and trained people to apply for vacant jobs in
the organisation. 1x3
(ii) Wider Choice: When vacancies are advertised widely,
a large number of applicants apply. The management
has a wider choice while selection. =

13
 (iii) Fresh Talent: The present employees may be
insufficient or they may not fulfill the specifications of
the jobs to be filled. External recruitment provide
wider choice and brings new blood in the organisation. 3 marks
(iv) Competitive Spirit: If a company taps external sources,
the existing staff will have to compete with the
outsiders. They will work harder to show better
performance.
25 Q. X Ltd.' issued 14% Debentures of `4,00,000 and
10,000 Equity shares of `60 each. This investment
resulted in a net profit of `2,00,000 before interest and
tax. The tax rate was 50%.

(a) Calculate the 'Return on Investment and Earning

per Share of ‘X Ltd.’

(b) State with reason whether the above example is that

of favourable or unfavourable financial leverage.

Ans (a)
Return on Investment

= Profit before interest and tax or EBIT x 100

Capital employed or Total Investment
1 ½ marks
= 2,00,000 x 100
10,00,000 +

=20%

1 ½ marks
Earning per share = Profit after interest and tax +
Number of equity shares

= 2,00,000 – 56,000 – 72,000

10,000
= ` 7.20 per share
½ mark + ½
Ans (b) mark for
It is a case of favourable financial leverage as the ROI > reason=1
Rate of interest.
14
 1 ½ + 1 ½ +1

4 marks
26 Q. Nitya is a student of class XIl of a well-known school.
She has a preconceived notion that her teacher always
finds fault in her work. One day while checking the
project work of class XII, her teacher wanted to
appreciate Nitya for her hard work and good
performance, but before she could complete her
sentence, Nitya left the room without listening to her
teacher.
(a) Identify the ‘barrier to communication' and also the
type/category of barrier to which it is related.
(b) Explain two other communication barriers of the
type/category identified in (a) above.

Ans (a) ½ x 2=
Premature Evaluation and Psychological Barriers 1mark

Ans (b) Any two of the following:

(i) Lack of Attention :
The pre-occupied mind of receiver and the resultant
½ mark for
non listening of message acts as a major
heading and
psychological barrier. 1 mark for
explanation
(ii) Loss by transmission and poor retention :
When communication passes through various levels, 1 ½ x2 =3
successive transmissions of the message results in
loss of, or transmission of inaccurate information.

(iii) Distrust :
Distrust between communicator and 1+3 =
communicatee acts as a barrier. If the parties do not 4 marks
believe each other, they cannot understand each
others message in its original sense.
27 Q. Identify and give the meaning of the concepts
highlighted in the following statements :

(a) The process of finding possible candidates for a job.

15
 (b) An assessment of the number and types of human
resources necessary for the performance of various
jobs.
(c) Introducing the selected employees to other
employees and familiarising them with the rules and
policies of the onganisation.
(d) It ensures that the organisation gets the best
employees amongst the employees available.

Ans
(a) Recruitment
Recruitment may be defined as the process of searching for
prospective employees and stimulating them to apply for
½ mark for
jobs in the organisation.
identification
(b)Workload analysis is a part of first step of staffing and ½ mark
process i.e., estimating the manpower requirements. for meaning
It involves assessment of the number and types of human
resources necessary for the performance of various jobs
and accomplishment of organisational objectives.

(c) Orientation
Orientation involves giving a brief presentation about the
company to the employee and introducing him/her to
his/her superiors, subordinates and the colleagues. 4 marks

(d) Selection
Selection is the process of identifying and choosing the
best person out of a number of prospective candidates for a
job.

28 Q. ‘Zeto Ltd.’ offers its employees shares at a price

which is less than the market price.
(a) Identify the incentive offered by the company and
state the type of incentive discussed above.
(b) State two other incentives of the type of incentive
identified in (a) above.

Ans (a)
Co-partnership/ Stock option
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 1
Financial incentives are the incentives measurable in direct
monetary form/term which serve to motivate people for
better performance. +1
(If the examinee has listed the type of incentive only, ½
mark to be awarded) =2 marks

Ans (b)
Two other financial incentives are : (Any 2)

(i) Pay and allowances include basic pay, dearness

allowance and other allowances.
1x2 =2marks
(ii) Productivity linked wage incentive aims at linking
payment of wages to increase in productivity at
individual or group level.
(iii)Bonus is an incentive offered over and above the
wages/ salary to the employees.
(iv) Sharing profit with employees serves to motivate the
employees to improve their performance and contribute
to increase in profits
(v) Retirement benefits such as provident fund, pension,
and gratuity provide financial security to employees after
their retirement.
(vi) Perquisites and fringe benefits are offered such as car
allowance, housing, medical aid, and education to the
children etc., over and above the salary.
(If the examinee has listed the points only, ½ mark each to 2+2=
be awarded) 4 marks

17
29 Q. (a) Keeping in mind the emerging nature of the
securities market in India, Securities Exchange Board
of India was entrusted with the twin task of both
regulation and development of the securities market.
State any two regulatory and two development
functions of it.

Ans (a) Functions of Securities Exchange Board of India:

Regulatory Functions: (Any two)

1.Registration of brokers and sub- brokers and other
players in the market.
2.Registration of collective investment schemes and mutual
funds.
3.Regulation of stock brokers, portfolio exchanges, 2+2
underwriters and merchant bankers and the business in =
stock exchanges and any other securities market. 4 marks
4.Regulation of takeover bids by companies.
5.Calling for information by under- taking inspection,
conducting enquiries and audits of stock exchanges and
intermediaries.
6.Levying fee or other charges for carrying out the
purposes of the Act.
7.Performing and exercising such power under Securities
Contracts (Regulation) Act 1956, as may be delegated by
the Government of India.

Development Functions: (Any two)

1.Training of intermediaries of the securities market.
2.Conducting research and publishing information useful to
all market participants.
3.Undertaking measures to develop the capital markets by
adapting a flexible approach.

OR

Q. (b) Explain the following factors affecting the

working capital requirements of an enterprise:

(i) Nature of business

(ii) Availability of raw material

18
 Ans (b) Factors affecting the working capital requirements
of an enterprise:

(i) Nature of business

• A trading organisation usually needs a smaller

amount of working capital compared to a
manufacturing organisation.
2+2
• This is because there is no processing. =
• Similarly, service industry which usually do not have 4 marks
to maintain inventory require less working capital.

(ii) Availability of raw material

• If the required materials are available freely and

continuously, lower stock levels may suffice.
• However, if raw materials do not have record of un-
interrupted availability, higher stock levels may be
required.
• Larger the lead time, larger the quantity of material
to be stored.

30. Q. (a) What is meant by Consumer Protection? Explain

any two points of importance of consumer protection
from the consumers' point of view.

Ans (a)
Consumer protection refers to educating consumers about
their rights and responsibilities, and also helping in getting 1 mark
their grievances redressed.

Importance of consumer protection from the consumers' ½ mark for

point of view: (Any two) heading and
(i) Consumer ignorance 1 mark for
(ii) Unorganised consumers explanation
(iii) Widespread exploitation of consumers 1 ½ x2=3

19
 1+3=4marks

OR

(b) Explain the following rights of a consumer:

(i) Right to choose

(ii) Right to safety

Ans (b)

(i) Right to choose / be assured

• The consumer has the freedom to choose
from a variety of products at competitive
prices.
• This implies that the marketers should offer
a wide variety of products and allow the 2+2
consumers to make a choice.

(ii) Right to Safety:

• The consumer has a right to be
protected against goods and services
which are hazardous to life and health.
• Consumers are educated that they
should use products which are standardised
as this would be an assurance of such = 4 marks
products meeting quality specifications.

31 Q. (a) Explain the following principles of Scientific

Management:
(i) Harmony, not Discord
(ii) Science, not Rule of Thumb

Ans. (a) (i) Harmony, not Discord

• There should be complete harmony between the

management and workers.
• Both should realise that each one is important.

20
 • Management should share the gains of the
company with the workers and workers should
be willing to embrace change for the good of the
3x2
company.

(ii) Science, not Rule of Thumb

• There is only one best method to maximise

efficiency, that can be developed through
study and analysis. = 6 marks
• This method should substitute ‘Rule of
Thumb’ throughout the organisation.
• This saves human energy as well as wastage
of time and materials.
OR

Q. (b) Explain the following principles of management:

(i) Equity
(ii) Authority and responsibility
(iii) Stability of Personnel

Ans (b)

i) Equity
• This principle emphasizes kindliness and
justice in the behaviour of managers
towards workers.
• There should be no discrimination against
anyone on account of sex, religion,
language, caste, belief or nationality etc. 2x3

= 6 marks
ii) Authority and responsibility

• There should be a balance between authority

and responsibility.
• Authority without responsibility would lead

21
 to its misuse. At the same time, manager
should have necessary authority to carry out
his responsibility.

iii) Stability of personnel

• Selected employees should be kept at their post/

position for a minimum fixed tenure.
• They should be given reasonable time to show
results.

32 Q. ‘It involves setting objectives and developing

appropriate course of action from amongst the different
alternative courses of action to achieve these objectives.’
(a) Identify the function of management referred above.
(b) State any five features of the function of
management identified in (a) above.

Ans (a) Planning 1 mark

(b) Features of the function of management: (Any five)

(i) Planning focuses on achieving objectives. Planning
has no meaning unless it contributes to the
achievement of predetermined organisational goals.
(ii) Planning is a primary function of management. It
lays down the base for other functions of
management.
(iii) Planning is pervasive function of management. It is
required at all levels of management as well as in
all departments of the organisation.
(iv) Planning is continuous function of management. It
means that a plan is framed, it is implemented, and
is followed by another plan, and so on.
(v) Planning is futuristic. Planning is regarded as a
forward looking function based on forecasting.
(vi) Planning involves decision making. It essentially
involves choice from among various alternatives

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 and activities. 1x5 =5
(vii) Planning is a mental exercise. It requires
application of the mind involving foresight,
1+5
intelligent imagination and sound judgement.
=6marks
(If the examinee has listed the points only, ½ mark each
to be awarded)
33 Q. ‘Sweets and More’ is one of India's most popular
brand for snacks and sweets, It offers a wide range of
sweets, namkeens, cookies and frozen foods.
Its organisational structure comprises of separate
business units in each of the above categories. Each of
these units have a manager responsible for
performance, having authority over the unit. Moreover,
each of these units is multi-functional as within each
unit, different functions like production, marketing.
finance, etc. are performed. Though this kind of
organizational structure leads to increased cost because
of duplication of activities across products, but it
provides a proper basis for performance measurement
as revenues and costs related to each of these business
units can be easily identified.
(a) Identify the organisational structure of ‘Sweets and
More.’
(b) State three advantages and two disadvantages of the
organisational structure identifed in (a) above which
are not discussed in the above case.

Ans 1 mark
(a) Divisional structure

(b) Three advantages of divisional structure:

i) Product specialisation helps in the development
of varied skills in a divisional head and this
prepares him for higher positions. This is because
he gains experience in all functions related to a
particular product.
ii) It promotes flexibility and initiative because each

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 division functions as an autonomous unit which
leads to faster decision making. 3 marks
iii) It facilitates expansion and growth as new
divisions can be added without interrupting the
existing operations by merely adding another
divisional head and staff for the new product line.

Two disadvantages of divisional structure:

i) Conflict may arise among different divisions with
reference to allocation of funds and further a
particular division may seek to maximise its 2 marks
profits at the cost of other divisions.
ii) It provides managers with the authority to
supervise all activities related to a particular 1+3+2=
division. In course of time, such a manager may 6 marks
gain power and in a bid to assert his
independence may ignore organisational interests.
(If the examinee has listed the points only, ½ mark each to
be awarded)
34 Q. ‘X Ltd.' is engaged in the manufacturing of cars. The
company surveyed the market and found that
customers need a car which runs on eco-friendly fuel
instead of petrol or diesel. Keeping the needs of
customers as well as social, ethical and ecological
aspects of marketing in mind, the company launched a
new model of car that runs on bio-diesel. The launch
event was covered by the top news channels and
newspapers. This was done to disseminate information
about the car and build goodwill of the business. ‘X
Ltd.' understands that it is imperative to manage public
opinion and company's relations with the public on a
regular basis.
(a) Identify and explain the marketing philosophy
involved in the above caşe.
(b) Identify and explain the communication tool that
was used by the company.
(c) Explain any two other promotional tools that can be
used by ‘X Ltd' to achieve its objectives

Ans
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(a) Societal Marketing Concept
The societal marketing concept holds that the task of any
organisation is to identify the needs and wants of the 1 mark for
target market and deliver the desired satisfaction in an identification
effective manner so that the long-term well-being of the + 1 mark for
explanation
consumers and the society is taken care of.
i.e,1+1=2

(b) Public Relations

Public relations involves a variety of programmes
designed to promote or protect a company’s image and its
individual products in the eyes of the public. Concrete 1 mark for
steps are to be taken to monitor the attitude of the general identification
public and generate positive publicity. + 1 mark for
explanation
i.e,1+1=2
(c) Other promotional tools that can be used by X Ltd:
(Any two)
(i)Advertising – It refers to impersonal form of
communication which is paid for by an identified
sponsor/marketer to promote some goods, services, or
ideas.
(ii) Sales promotion : It refers to short term incentives, 1+1=2
which are designed to encourage the buyers to make
immediate purchase of a product or service.
(iii) Personal Selling: Personal selling involves oral
presentation of message in the form of conversation with
one or more prospective customers for the purpose of 2+2+2=
6 marks
making sales.

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