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Business Studies Delhi Set 3 2016-2017 CBSE (Commerce) Class 12 Question Paper Solution

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Business Studies [Delhi Set 3]
Marks: 80 Academic Year: 2016-2017
Date & Time: 15th March 2017, 12:30 pm
Duration: 3h
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[1] 1

Why is employment interview conducted in the process of selection?

Concept: Staffing - Selection Process
Chapter: [0.016] Staffing
[1] 2

Hina Sweets is a renowned name for quality sweets since 1935. Harsh the owner of Hina Sweets was worried as the sales had declined during the last three months. When he enquired from the Sales Manager, the Sales Manager reported that there were some complaints about the quality of sweets. Therefore Harsh ordered for sample checking of sweets.

Identify the step taken by Harsh that is related to one of the functions of management.

Concept: Concept of Controlling
Chapter: [0.018000000000000002] Controlling
[1] 3

Give the meaning of 'motivation' as an element of directing.

Concept: Concept of Motivation
Chapter: [0.017] Directing
[1] 4

What is meant by financial management?

Concept: Concept of Financial Management
Chapter: [0.021] Financial Management
[1] 5

Sunita took her niece. Aishwarya for shopping to 'Benetton' to buy her a dress on the occasion of her birthday. She was delighted when on payment for the dress she got a discount voucher to get 20% off for a meal of Rs 500 or above at a famous eating joint. Identify the technique of sales promotion used by the company in the above situation

Concept: Concept of Sales Promotion
Chapter: [0.023] Marketing Management
[1] 6

Meca Ltd. a reputed automobile manufacturer needs Rupees ten crores as additional capital to expand its business. Atul Jalan, the CEO of the company wanted to raise funds through equity. On the other hand the Finance Manager, Nimi Sandev said that the public issue may be expensive on account of various mandatory and non-mandatory expenses. Therefore, it was decided to allow the securities to institutional investors. Name the method through which the company decided to raise additional capital.

Concept: Budget and Programme
Chapter: [0.013999999999999999] Planning
[1] 7

Differentiate between formal and informal organisation on the basis of origin.

Concept: Structure of Organisation
Chapter: [0.015] Organising
[1] 8

Alpha Enterprises is a company manufacturing water geysers. The company has a functional structure with four main functions Production, Marketing, Finance and Human Resource. As the demand for the product grew, the company decided to hire more employees. Identify the concept which will help the Human Resource Manager in deciding the actual number of persons required in each department.

Concept: Staffing as a Part of Human Resource Management
Chapter: [0.016] Staffing
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[3] 9

Explain briefly discipline and scalar chain as principles of general management.

Concept: Concept of Principles of Management
Chapter: [0.012] Principles of Management
[3] 10

State any three limitations of planning

Concept: Limitation of Planning
Chapter: [0.013999999999999999] Planning
[3] 11

Explain any three points that highlight the importance of directing function of management.

Concept: Concept of Directing
Chapter: [0.017] Directing
[3] 12

Ginika, Tanish and Rohit were friends from college days and now they are doing different kinds of business. They regularly meet and discuss their business ideas and exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques, social concerns etc.
In one of such meetings, Ginika drew the attention of Tanish and Rohit towards the exploitation of consumers. She told that most of the sellers were exploiting the consumers in various ways and were not paying attention towards the social, ethical and ecological aspects of marketing, whereas she was not doing so.

Tanish told that they were under pressure to satisfy the consumers, but stated that the consumers would not buy or not buy enough unless they were adequately convinced and motivated for the same.

Rohit stressed that a company cannot achieve its objectives without understanding the needs of the customers. It was the duty of the businessmen to keep consumer satisfaction in mind because business is run by the resources made available to them by the society. He further stated that he himself was taking into consideration the needs of the customers.

Identify the various types of thinking that guided Ginika, Tanish and Rohit in the making efforts of their business. Also. state one more feature of the various types of thinking identified that is not given in the above para.

Concept: Concept of Marketing
Chapter: [0.023] Marketing Management
[3] 13

Somnath Ltd. is engaged in the business of export of garments. In the past, the performance of the company had been up to the expectations. In line with the latest technology, the company decided to upgrade its machinery. For this, the Finance Manager. Dalmia estimated the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis. Dalmia, therefore, began with the preparation of a sales forecast for the next four years. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business.
For the remaining funds, he is trying to find out alternative sources from outside. Justify the financial concept discussed in the above para. Also, state the objectives to be achieved by the use of the financial concept, so identified. 

Concept: Concept of Financial Planning
Chapter: [0.021] Financial Management
[4] 14
[4] 15

Ashutosh Goenka was working in 'Axe Ltd.', a company manufacturing air purifiers. He found that the profits had started declining from the last six months. Profit has an implication for the survival of the firm, so he analysed the business environment to find out the reasons for this decline.

1) Identify the level of management at which Ashutosh Goenka was working.

2) State three other function being performed by Ashutosh Goenka

Concept: Concept of Motivation
Chapter: [0.017] Directing
[4] 16

Give the meaning of procedure and rule as types of plans.

Concept: Concept of Planning
Chapter: [0.013999999999999999] Planning
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[4] 17

Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for itself and had been doing well. It was known for timely completion of orders. The Production Manager, Ms Kanta was efficiently handling the processing of orders and had a team of fourteen motivated employees working under her. Everything was going on well. Unfortunately, she met with an accident. Umang knew that in the absence of Ms Kanta, the company may not be able to meet the deadlines. He also knew that not meeting the deadlines may lead to customer dissatisfaction with the risk of loss of business and goodwill. So, he had a meeting with his employees in which accurate and speedy processing of orders was planned. Everybody agreed to work as the team because the behaviour of Umang Gupta was positive towards the employees of the organisation. Hence everyone put in extra
time and efforts and the targets were met on time.

Not only this, Umang visited Ms Kanta and advised her to take sufficient rest.

1) Identify the leadership style of Umang Gupta and draw a diagram depicting the style.

2) State any two values highlighted by the behaviour of Umang Gupta.

Concept: Concept of Leadership
Chapter: [0.017] Directing
[4] 18

Explain briefly transfers and promotions as internal sources of recruitment.

Concept: Staffing - Recruitment Process
Chapter: [0.016] Staffing
[4] 19

These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this, there is another market in which unsecured and short-term debt instruments are actively traded every day. These markets together help the savers and investors in directing the available funds into their most productive investment opportunity.

1) Name the function being performed by the market in the above case.

2) Also. explain briefly three other functions performed by this market.

Concept: Concept of Financial Markets
Chapter: [0.022000000000000002] Financial Markets
[5] 20

Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has a large research and evelopment team which invented the first smartwatch, named as W-7. The watch besides showing the time also monitors few health parameters like a heartbeat, blood pressure etc.

While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India.

It set up its office in Jamnagar with a view to capturing the Indian market. In a short span of time, the company emerged as a market leader. The success of the company attracted many other players to enter the market. The competition resulted in the reduction in prices, thereby benefiting the customers.

1) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.

2) Also, explain briefly any three impacts of these concepts on Indian business and industry.

Concept: Impact of Government Policy Changes on Business with Special Reference to Liberalization, Privatization and Globalization in India
Chapter: [0.013000000000000001] Management and Business Environment
[5] 21

Indian Youth Organisation (IYO) organised a visit of its members to an old age home to inculcate the habit of social work among them. The visit revealed that the living conditions of the inmates of the old age home were not hygienic. So, the IYO members decided to clean the premises. During their cleanliness drive, they realised that the old age home also required pest control. But some of the inmates of old age home were reluctant for it because they believed that the pest control may create health problems for them. IYO therefore decided to provide ethical, safe and odourless pest control. They showed to the inmates of old age home a pamphlet of the proposed pest control product which promised easy, inexpensive and long-lasting pest control. The inmates happily agreed and the pest
control was carried out. It worked for a fortnight but to their dismay, the effect started wearing off. IYO contacted the pest control company which kept on postponing their visit. After waiting for a month, IYO filed a case in the consumer court.

The consumer court was satisfied with the genuineness of the complaint and issued necessary directions to the pest control company

1) State any six directions that might have been issued by the court.

2) Also, identify any two values that are being communicated by IYO to the society.

Concept: Concept of Consumer Protection
Chapter: [0.024] Consumer Protection
[5] 22

Answer the following question:
Explain any five points which highlight the importance of controlling the function of management.

Concept: Importance of Controlling
Chapter: [0.018000000000000002] Controlling
[6] 23

Answer the following question.
Explain briefly any four factors affecting the fixed capital requirements of an organisation.

Concept: Factors Affecting Fixed and Working Capital Requirements
Chapter: [0.021] Financial Management
[6] 24

Mediquip Ltd. is a company dealing in the distribution of medical equipment. The company recently imported 15000 units of sugar testing machines to test the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones.

In the meeting, Sandeep, the North Zone Marketing Head, suggested that since the machines were sophisticated they need to visit hospitals to personally, explain its working to the hospital staff who would be using the machines. He also suggested that additional trained people may be recruited for the same. 

Himanshu, another Zonal Head, added that since a lot of money had been spent on the import of the machines, the company was short of funds to pay to the additional staff as suggested by Sandeep

Rahul, a newly appointed Zonal Head of South Zone suggested that since the size of the order is not large, a detailed study of the factors determining the choice of channels of distribution is required before making the right choice.

1) Identify the factor influencing the choice of channels of distribution which were discussed in the meeting.

2) Also, explain briefly the other consideration to be taken care of in each factor identified in part (a).

Concept: Nature of Product
Chapter: [0.023] Marketing Management
[6] 25

Aman Chadha started 'Bulls Eye' a company for providing cyber security solutions to businesses. Its objective is to prevent, detect and respond to cyber attacks and protect critical data. He was a hardworking software engineer and an expert in cybersecurity. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day.

He was delighted when he was offered a big project by the Ministry of Defence. While working on the project, he found that the volume of work made it impractical for him to handle all the work by himself. He decided to expand the team. The company maintained a close liaison with a local engineering college. During a campus placement, Ishan and Vrinda were appointed to work for the new project.

He found the new employees capable. Enthusiastic and trustworthy. Aman Chadha was thus, able to focus on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not only this Aman Chadha was also able to extend his area of operations. On the other hand, Ishan and Vrinda also got opportunities to develop and exercise initiative.

1) Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in focusing on objectives.

2) Also, state any four points of importance of the concept identified in (i) above.

Concept: Consumer Protection Act 1986 (COPRA)
Chapter: [0.024] Consumer Protection

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