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Senior School Certificate Examination March - 2023 Marking Scheme - Business Studies 66/1/1, 66/1/2, 66/1/3
Senior School Certificate Examination March - 2023 Marking Scheme - Business Studies 66/1/1, 66/1/2, 66/1/3
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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
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'?
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(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)
Business Cycle 1 mark
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.
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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
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.
(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 ?
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 ?
Ans (b)
Assignment of duties 1 mark
14 Q. Statement I: Management is multi-dimensional.
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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
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changing, whether in terms of
technological improvement or
shifts in consumer preferences.
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
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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 (d)
Growth 1 mark
21 Q. (a)
Ans (a)
(i) Dematerialisation
1 mark+
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(ii) RBI, Commercial Banks, NBFCs, State Governments,
Large Corporate Houses, Mutual Funds. (Any two) 1/2x2=1+
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
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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.
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(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
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(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%.
Ans (a)
Return on Investment
=20%
1 ½ marks
Earning per share = Profit after interest and tax +
Number of equity shares
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
(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 :
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(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.
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)
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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.
OR
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Ans (b) Factors affecting the working capital requirements
of an enterprise:
Ans (a)
Consumer protection refers to educating consumers about
their rights and responsibilities, and also helping in getting 1 mark
their grievances redressed.
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1+3=4marks
OR
Ans (b)
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• 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.
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
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to its misuse. At the same time, manager
should have necessary authority to carry out
his responsibility.
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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
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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.
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
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