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CBSE Sample Papers for Class 9 Science Paper 1 are part of CBSE Sample Papers for Class 9 Science. Here we have given CBSE Sample Papers for Class 9 Science Paper 1.

CBSE Sample Papers for Class 9 Science Paper 1

Students who are going to appear for CBSE Class 9 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 1 of Solved CBSE Sample Paper for Class 9 Science is given below with free PDF download solutions.

Time Allowed : 3 Hours
Max. Marks: 80

General Instructions

• The question paper comprises of two Sections, A and B. You are to attempt both the sections.
• All questions are compulsory. However, an internal choice will be provided in two questions of 3 marks each and one question of five marks.
• All questions of Section A and all questions of Section B are to be attempted separately.
• Question numbers 1 to 2 in Section A are one-mark questions. These are to be answered in one word or in one sentence.
• Question numbers 3 to 5 in Section A are two-marks questions. These are to be answered in about 30 words each.
• Question numbers 6 to 15 in Section A are three-marks questions. These are to be answered in about 50 words each.
• Question numbers 16 to 21 in Section A are five-marks questions. These are to be answered in about 70 words each.
• Question numbers 22 to 27 in Section B are two-marks questions based on practical skills. These are to be answered in brief.

Questions
SECTION-A

Question 1.
What is the commercial unit of energy and state its equivalent value in joules.

Question 2.
Name the plastid involved in the conversion of green colour of tomato to red colour.

Question 3.
A man weighs 600 N on the surface of earth. What would be his mass and weight on the surface of moon? [ g_earth = 10 m/s² ]

Question 4.
A body is floating on the surface of a liquid. With the help of a diagram show the two forces acting on it that are responsible for its floatation. State the relationship between these two forces in this case.

Question 5.

1. Mention any two human activities which would be responsible for air pollution.
2. How is Earth’s atmosphere different from that of Venus and mars?

Question 6.
Distinguish between homogeneous and heterogeneous mixture. Classify the following mixtures as homogeneous and heterogeneous

1. Tincture of iodine
2. Smoke
3. Brass
4. Sugar solution

Question 7.
Derive graphically the equation for the position-time relation for an object travelling a distance ‘s’ in time ‘t’ under uniform acceleration.
OR
A stone dropped from a window reaches the ground in 0.5 seconds –
(i) Calculate its speed just before it hits the ground.
(ii) What is its average speed during 0.5 s?
(iii) Calculate the height of window from the ground.

Question 8.
(a) State two ways in which phloem is functionally different from xylem.
(b) Draw a neat diagram of a section of phloem and label its four parts.

Question 9.
State one difference between dugwells and tubewells. Explain any two fresh initiatives taken to increase the water available for agriculture.

Question 10.
(a) Which two factors bring about the loss of food grains during storage? Give one example for each.
(b) State any two control measures to be taken before grains are stored.
OR
Discuss with the help of suitable examples three ways in which microorganisms can enter into human body.

Question 11.

1. Write chemical formula of Aluminium Sulphate.
2. Give example each of a homodiatomic & homotetratomic molecule.

Question 12.

1. Identify two features possessed by all Chordates.
2. In which class would you place an organism which has
   
   • a scaly exoskeleton and a bony endoskeleton
   • a scaly exoskeleton and lay eggs outside water.

Question 13.
A flask contains 4.4 g of CO₂ gas. Calculate
(a) How many moles of CO₂ gas does it contain?
(b) How many molecules of CO₂ gas are present in the sample.
(c) How many atoms of oxygen are present in the given sample.
[Atomic mass of C = 12 u, O = 16 u)

Question 14.
What is an Echo? State two conditions for echo to be heard. Bats cannot see still they catch their prey. Explain.

Question 15.

1. It was diagnosed that Preeti suffers from Japanese encephalitis, which organ of Preeti’s body is effected?
2. How are antibiotics effective in the treatment of some diseases?
3. Will they help in curing Preeti’s disease? Why?

Question 16.
Define ‘Power’ of a body.
State and define the S.I. unit of Power. Two children A and B both weighing 32 kg start climbing up a rope separately and reaches the height of 8m, ‘A’: takes 15 s and ‘B’ takes 20 s to reach that level. Calculate the amount of work done by A and B. Which of the two has more power. Show by calculation, [g = 10 m/s²]

Question 17.

1. Illustrate Rutherford’s experiment to explain the model of an atom.
2. Atomic number of an element is 17. Identify the element, write its electronic configuration & mention its valency.

Question 18.
The velocity time graph of a body is given as follows:

1. State the kind of motion represented by OA; AB.
2. What is the velocity of the body after 10 s and after 40 s?
3. Calculate the retardation of the body.
4. Calculate the distance covered by the body between 10th and 30th second.

Question 19.
Apoultry farmer wants to increase his broiler production. Explain three management practices he must follow to enhance the yield.
In what way is the daily food requirement of broilers different from those of egg layers?

Question 20.
Distinguish solids, liquids and gases in a tabular form under the following characteristics:

1. Rigidity
2. Compressibility
3. Inter-particle forces of attraction
4. Inter-particle spaces
5. Kinetic energy of particles

Question 21.
(a) Draw a neat and labelled diagram of the apparatus used to separate components of blue- black ink. Name the process and state the principle involved.
(b) Identify the physical and chemical changes from the following:

1. Burning of magnesium in air
2. Tarnishing of silver spoon
3. Sublimation of iodine
4. Electrolysis of water

OR
(a) Write down the chemical formulae of the following compounds:

1. Magnesium Nitride
2. Calcium Nitrate
3. Sodium Carbonate

(b) Find out the number of atoms present in:

1. PO^3-₄ ion
2. H₂SO₃ molecule

SECTION-B

Question 22.
The spring balance shown here is used to measure the mass of a given solid. Calculate the mass of the solid.

Question 23.
Waves in a slinky travelles in to and for motion as shown; calculate the velocity of the wave.


Question 24.
The diagram shows life cycle of a mosquito, the missing stages marked as (i) and (ii) are

Question 25.
Give the chemical formula of sugar and alum.

Question 26.
How will you calculate the minimum distance for an echo?

Question 27.
A measuring cylinder has 5 mark between 10 mL to 20 mL. What is its least count?

Answers
SECTION : A

Answer 1.
Kilowatt hour
1 kilowatt hour = 3.6 × 10⁶ joules

Answer 2.
Chromoplast

Answer 3.

Answer 4.

Answer 5.

1. 
   
   • Increased use of vehicles run by fossil fuels increases the gaseous air pollutants.
   • Factory outlets, low efficiency engines throw exhaust gases in the air.
2. In Earth’s atmosphere, CO₂ is 0.03% of the total of all gases and in the atmosphere of Mars and Venus it is 95 – 97% of all the gases.

Answer 6

1. Tincture of iodine – Heterogeneous
2. Smoke – Heterogeneous
3. Brass – Heterogeneous
4. Sugar solution – Heterogeneous

Answer 7.

Distance travelled by the object = Area of graph under the curve
= area of trapezium OABC
= area of rectangle OADC + area of triangle ABD

Answer 8.
(a)

1. Phloem transports food from leaves to other parts of the plant body unlike xylem, which transports water and minerals from roots to other parts of the plant.
2. Phloem unlike xylem allows movement of materials in both the directions, i.e. both towards the root and also away from the root.

(b)

Answer 9.

1. Dugwell – Water is collected from water bearing strata, manually using a bucket.
   Tubewell – Water is collected from deeper strata using a handle present on it.
2. Rain water harvesting and Watershed management are the two initiatives taken to increase the water supply for agriculture. These initiatives involve building small check dams to stop the rain water to flow away.

Answer 10.
(a)

• Biotic factors – Insects/ rodents/ fungi/ mites (any one)
• Abiotic factors – Inappropriate temperature/ Inappropriate moisture

(b) Any two of the following measures –

• strict cleaning of product before storage
• proper sundrying and then drying in shade
• Fumigation
• systematic management of warehouses

OR

• Through cuts and wounds (Tetanus)
• Through contaminated food and water (cholera)
• Through sexual contact (AIDS, Syphillis)
• Through air (TB, Pneumonia)
• Through direct skin contact (Ring worm) (any three)

Answer 11.

1. Aluminium sulphate:
   
2. Homo-diatomic molecule – O₂ /H₂/N₂
   Homo-tetratomic molecule – P₄

Answer 12.

1. Presence of notochord/ dorsal nerve chord/ paired gill pouches/ have a bilaterally symmetrical body/ are triploblastic are coelomate. (any two)
2. 
   
   • Class Pisces
   • Class Reptilia

Answer 13.

Answer 14.

1. Echo – sound heard after reflection from an obstacle. 
2. Conditions –
   
   • time interval between the original sound and reflected sound must be at least 0.1 s
   • minimum distance of the obstacle from the source of sound must be 17.2 m at 22°C. = 17 – 18 m at room temperature.
3. Bats produce ultrasonic waves. These signals are received by them after reflection from the prey and interpreted by their brain accordingly.

Answer 15.

1. Brain
2. They block the biochemical pathways. As a result of this the bacteria are unable to make cell walls and so they die.
3. No, Japanese encephalitis is a viral disease.

Answer 16.

• Power is the rate of doing work/rate of transfer of energy.
• S.I. unit of power is watt
• I watt is the power of an agent which does work at the rate of 1 joule per second/ power
  of an agent when the rate of consumption of energy is 1 joule per second.

For A:
W = mgh
= 32 kg × 10 m/s² × 8 m
W = 2560 J
Both have same mass and climb the same height.
∴ Work done by B = 2560 J
P = \(\frac { 2560J }{ 15S } \) = 170.7 W
P = \(\frac { 2560J }{ 20S } \) = 128 W
∴ A has more power

Answer 17.
1. Rutherford’s scattering experiment: He selected a sheet of very thin gold foil to be bombarded with fast moving a-particles – which were doubly positively charged ‘He’ ions.
The fast moving a-particles have a considerable amount of kinetic energy to hit the gold atoms
Observations:

• Most of the a-particles passed straight through the foil.
• One out of 20,000 particles appeared to rebound.

Inference:

• There is a positive centre inside the atom called nucleus.
• The electrons revolve around the nucleus in well defined orbits.
• The size of the nucleus is very small as compared to the size of the atom.

2. Atomic number is 17
Element is chlorine
Electronic configuration – 2, 8, 7; valency – 1

Answer 18.

1. OA – uniform acceleration, AB – zero acceleration/constant velocity.
2. 20 ms^-1; zero/body comes to rest.
3. Retardation = \(\frac { { (0-20)ms }^{ -1 } }{ (40-30)s } \) m s^-1 = -10 m s^-1
4. Distance between 10th and 30th second = area of shaded figure
   = (30 – 10)s × 20 m s^-1
   = 20 s × 20 m s^-1
   = 400 m

Answer 19.

1. Maintenance of temperature
2. Provision of hygienic conditions in housing and poultry feed
3. Prevention and control of diseases and pests
   The broiler’s food must be rich in protein, fat, vitamin A and vitamin K, as the food should help in good growth rate, to develop more muscles and to maintain feathering and carcass quality.

Answer 20.

Answer 21.

Process: Chromatography
Principle: The coloured component that is more soluble in water rises faster and in this way, the colours of different dyes present in blue-black ink get separated.
(b)

1. Chemical change
2. Chemical change
3. Physical change
4. Chemical change

OR
(a) The chemical formulae of the compounds are as follows:

1. Magnesium Nitride – Mg₃N₂
2. Calcium Nitride – Ca(NO₃)₂ 
3. Sodium Carbonate – Na₂CO₃

(b)

1. The number of atoms in PO^3-₄ i is 5.
2. The number of atoms in H₂SO₃ molecule is 6.

SECTION : B

Answer 22.
Initial reading of the spring balance = 10 g
Final reading of the spring balance = 122.5 g
Final reading = 122.5- 10= 112.5 g

Answer 23.
velocity = \(\frac { Distance }{ time } \) ; \(\frac { 20m }{ 10 } \) = 2 m/s

Answer 24.

• Larva
• Pupa

Answer 25.

• Sugar – Sucrose → C₁₂H₂₂O₁₁ 
• Alum – K₂SO₄ . Al₂(SO₄)₃ . 24H₂O

Answer 26.
Speed of sound = \(\frac { Distance }{ Time }\)
344 m/s = \(\frac { Distance }{ 1.0s } \)
∴ Distance = 34.4 m
This is the total distance, hence half of 34.4 m = 17.2 m is the minimum distance for an echo.

Answer 27.
20mL – 10mL= 10 mL
∵ 5 × 2 = 10
∵ Each mark is of 2 mL value.

We hope the CBSE Sample Papers for Class 9 Science Paper 1 help you. If you have any query regarding CBSE Sample Papers for Class 9 Science Paper 1, drop a comment below and we will get back to you at the earliest.

CBSE Sample Papers for Class 12 Business Studies Paper 6 are part of CBSE Sample Papers for Class 12 Business Studies Here we have given CBSE Sample Papers for Class 12 Business Studies Paper 6.

CBSE Sample Papers for Class 12 Business Studies Paper 6

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 6 of Solved CBSE Sample Papers for Class 12 Business Studies is given below with free PDF download solutions.

Time: 3 Hours
Maximum Marks: 80

General Instructions

(i) Answer to questions carrying 1 mark may be from one word to one sentence.
(ii) Answer to questions carrying 3 marks may have about 50 to 75 words.
(iii) Answer to questions carrying 4 – 5 marks may have about 150 words.
(iv) Answer to questions carrying 6 marks may have about 200 words.
(v) Attempt all the parts of a question together.

Question 1:
Which function of management involves setting objectives and developing appropriate course of action to achieve these objectives?

Question 2:
Jayesh is working as a supervisor in a company. Due to his hardwork, he is promoted to the post of production manager. Now the post of supervisor is vacant and no one can be transferred or promoted to this post. Name the source of recruitment the company will use to fill up this post.

Question 3:
Explain the meaning of noise in the process of communication.

Question 4:
Apian is framed, implemented and followed by another plan and so on. Mention the feature of planning indicated here.

Question 5:
There are many redressal machinery under Consumer Protection Act who protect the consumers. Name any two such consumer grievance agencies.

Question 6:
State any two advantages of free rein leadership.

Question 7:
The operations manager of Zen Back Ltd, set a limit of 8% deviation in production and decided to take corrective action only if deviations occurred beyond 8%. Name the controlling principle applicable here.

Question 8:
the capital structure of a company is given as:
Equity = ₹25,00,000
Debt = ₹15,00,000
Find out the financial leverage for the above company.

Question 9:
Mansi, a shoe manufacturer for school students, decided to maximise her profit by producing and distributing at large scale and thereby, reducing the average cost of production.
(i) Identify the marketing management philosophy adopted by Mansi.
(ii) Explain this philosophy on the basis of
(a) Main focus
(b) Means and ends

Question 10:
The finance manager of Aerial Automobiles has made a detailed plan analysing the minutest financial needs of the firm in the coming six months. He also analyses the sources from where such fund requirement will be met.
(i) Name the process the finance manager is involved in.
(ii) Explain any two essential requirements of a sound financial plan.

Question 11:
How do principles of management provide useful insights into reality? Explain.

Question 12:
Differentiate between delegation and decentralisation.

Question 13:
” A leader who has only good physical features and required knowledge and competence cannot inspire others to work.” Then what else is required by a leader to be successful? Explain by giving three points.

Question 14:
Explain any four impacts of government policy changes on business and industry.

Question 15:
XYZ Power Ltd set-up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the costs and the risks.
The demand of lanterns was increasing day-by-day, so the company decided to increase production to generate higher sales. For this, they decided to employ people from the nearby villages as very few job opportunities were available in that area. The company also decided to open schools and creches for the children of its employees.

1. Identify and explain the objectives of management discussed above.
2. State any two values which the company wanted to communicate to the society.

Question 16:
A furniture manufacturer gets an order of manufacturing 100 chairs. He has six workers, who will do the work. Each and every worker is specialised in completing one task only. One is good in cutting, second is good in shaping, third is good in finishing and so on.

1. If he wants to complete the target on time, which principle will help him?
2. What benefit company will have, by opting for this principle?

Question 17:
Being a management guru, you feel that the adopted plan is not suitable for company’s growth. Suggest an ideal plan for your company and briefly discuss its characteristics.

Question 18:
“Money is not the only motivator”, then what else is required to motivate employees? Explain by giving any four points.

Question 19:
Explain the meaning of controlling. State some of its objectives.

Question 20:
Betal Qroup is a leading producer of ‘Pan Bahar Pan Masala’. In order to promote its product it is using slogan ‘Come Alive’. They have also prepared an advertisement featuring leading actors and actresses of bollywood who are shown to be great patrons of the product. The advertisement, in addition to be misleading, is also not showing the statutory warning “Pan masala chabana swasthya ke liye hanikarak hai.”

1. Which values are overlooked by the promoters?
2. What are the drawbacks of advertisement being portrayed in this case?

Question 21:
Financial management is concerned with inflow and outflow of money, do you agree? Give some significance of financial management.

Question 22:
What are the first five steps involved in staffing process?

Question 23:
You are asked to design a label for a Coco Love, a new chocolate launched by CC company. Mention what factors will you keep in mind and furnish the information on the label of the product.

Question 24:
Mr Sahil and Mr Rajesh are promoting a new company. They are not able to decide on, how to raise funds.
Sahil is interested in a new issue through prospectus, while Rajesh wants a right issue.

1. As a financial manager, suggest Sahil and Rajesh for the appropriate decision.
2. Discuss the methods by which securities are issued in the primary market.

Question 25:
Mrs Leena Mehta works as a corporate event coordinator in an event management company. She has been made an overall official incharge for organising a painting exhibition for one of the clients of the company. For ensuring that the exhibition takes place successfully, she identifies the various activities involved and divides the whole work into various task groups like marketing committee, decoration committee and reception committee. In order to facilitate coordination within and among committees, she appoints a supervisor of each group. Each member is asked to report to their respective supervisors and all the supervisors are expected to work as per her orders. In context of the above case:

1. Identify and define the function of management being performed by Mrs. Leena.
2. Describe briefly the various steps involved in the performance of the function of management as identified in part (a) of the question.

Answers

Answer 1:
Planning function involves setting objectives and developing appropriate course of actions to achieve these objectives.

Answer 2:
Company will use external source of recruitment.

Answer 3:
Noise means an obstruction or hindrance in the communication process, e.g. A poor telephone connection or an inattentive listener.

Answer 4:
The feature of planning indicated here is that planning is a continuous process.

Answer 5:
Two consumer grievance agencies are stated below:

1. District forum
2. State commission

Answer 6:
Two advantages of free rein leadership are stated below:

1. It provides maximum scope for development of subordinates.
2. It helps in full utilisation of the potential of subordinates.

Answer 7:
The controlling principle applicable here is management by exception.

Answer 8:
Calculation of financial leverage of the company as follows:
financial leverage = \(\frac { Debt }{ Equity }\) = \(\frac { 15,00,000 }{ 25,00,000 }\) = 0.6

Note : Financial leverage can also be computed by using the following formula:
\(\frac { Debt }{ Debt + Equity }\)

Answer 9:
(i) Mansi adopted the production concept. The focus of business activities was on production of goods as the demand for goods started picking up as the supply was low. Thus, it was believed that profit could be maximised by producing at large scale, thereby, reducing the average cost of production.

(ii) (a) The main focus of production concept is on quantity of product.
(b) Availability and affordability of product is the means and profit through volume of production is the end.

Answer 10:
(i) The financial manager is involved in financial planning.
(ii) Following are the two essential elements of a sound financial plan:
(a) A sound financial plan should help in facilitating the collection of optimum funds.
(b) It should be able to tap appropriate sources at the appropriate time. Thus, it helps in fixing the most appropriate capital structure.

Answer 11:
Principles of management are the statements of fundamental truth that explain the relationship between variable factors. These principles serve as guidelines for decision-making of managers. Management principles are important as they provide useful insights into reality. The principles of management help the managers to increase their efficiency by increasing their knowledge and ability to understand the situations. They help the managers to learn from the past mistakes and conserve time by taking wise decisions quickly
e.g. A manager can give his authority of taking day-to-day decisions to his/her subordinate and deal only with exceptional situations, which require his/her expertise by following the principle of delegation of authority.

Answer 12:
Difference between delegation and decentralisation are:

Answer 13:
Apart from good physical features, required knowledge and competence, a leader requires many other qualities which are as follows:

1. Good Communication Skills A leader requires good communication skills so that he can explain his ideas, guide and motivate his followers. He needs to be a good listener too.
2. Initiative The leader does not wait for others but takes the first step and creates opportunities.
3. Motivation Skills He should be able to influence the actions of people through proper motivation.

Answer 14:
Following are the four impacts of government policy changes on business and industry:

1. Increasing Competition Changes in the rules of industrial licensing resulted in entering of foreign firms which has increased the competition for Indian firms. „
2. Need for Developing Human Resource The new market conditions require trained, committed personnel. Hence, the need for developing human resources arises.
3. Market Orientation It implies that after the changes in government policy, the firms first have to study the market and then produce the goods accordingly.
4. Loss of Budgetary Support to the Public Sectors Public sectors have less of budgetary support from the Central Government. Now, they have to generate their own resources and be more efficient in order to survive and grow.

Answer 15:
(i) It is related with the social objective of management. It deals with the commitment of an organisation towards society. Such objectives may relate with producing eco-friendly products, providing employment to the weaker sections of the society, etc.
By covering the costs and risks, the company has also achieved the organisational objectives. This objective is related with three aspects:

• Survival Ensure the continuity of business operations.
• Profit Earn a reasonable profit, which covers the costs and risks of the business.
• Growth It ensures the success of business in the long-run.

(ii) Firstly, by manufacturing solar lanterns, company gives due value to the needs of the rural people, as they will be able to enjoy electricity in their respective areas. Secondly, by giving employment, they will raise the standard of living of rural people.

Answer 16:

1. Division of work is suitable for the above mentioned case, as this principle states that the whole work is divided into small tasks and should be assigned to the persons as per their capabilities and experience. This results in timely completion of work and leads to specialisation.
2. When workers are performing the task as per their specialisation, this will result in increased efficiency, reduced wastages, specialisation and timely completion of work.

Answer 17:
An ideal plan should be effective, simple and should make the objectives of an organisation clear.
It helps in achieving the targets, reduces the risk of uncertainty, helps in coordination and encourages innovation and creativity.

Some main characteristics are:

1. Clarity The objectives and goals to be achieved should be clearly defined.
2. Practicability The plan should be based on facts and their implementation should be possible.
3. Flexibility A plan should be flexible, so that it can adopt the changes.

Answer 18:
“Money is not the only motivator.” This statement is true in this context that an individual has certain psychological, emotional and social needs. Money cannot satisfy them.

In order to satisfy these needs, following non-financial incentives are required:

1. Promotion If an individual gets promotion in the organisation, it satisfies him psychologically as he gets a feeling that his hardwork is recognised.
2. Job Security Every individual needs stability in terms of future income, job, etc. If their job is secure, they do not feel worried and work with greater zeal.
3. Employee Participation It means involving employees in decision-making process. This kind of programmes motivate employees and they feel that their suggestions are of worth.
4. Employee Recognition Programmes It means acknowledgment for participation. If an employee has performed well then a certificate or momentum should be presented to him. This will motivate him to perform better in future also.

Answer 19:
Controlling is an important managerial function. It is concerned with taking preventive actions against deviations. It is the process, through which managers assure that the actual activities conform to the planned activities. Controlling has a very wide scope. It does not end only by comparing the actual performance with planned performance, but it tries to find the reasons and solutions for such problems also.

The main objectives of controlling are :

1. It ensures that work is carried on as per the planned targets.
2. It enables managers to find out deviations/errors, thus providing direction for the work to move on the right track.

Answer 20:
(i) Promoters are overlooking the social and moral values in order to promote their product. Firstly, they are neglecting the health of the people and secondly, they are adopting unfair advertising practices.

(ii) Following are the drawbacks which are evident in this case :

• Effect on Values and Life Style In this case, they are using slogan ‘Come Alive’ for tobacco. How can a person come alive after using tobacco? It affects the social values of a customer and just for a style symbol, one can start using it after watching such promotional advertisements.
• Encourage Sale of Hazardous Products Just because of advertisement, anything can be sold in the market. The customers get attracted to such an advertisment and start purchasing the product without considering the drawbacks of the products as in the advertisement only attractive features are highlighted.
• Not Providing True Information As per the legal compulsion, it is necessary to show the statutory warning that “Pan masala chabana swasthya ke liye hanikarak hai.” But in the advertisement, they are neglecting this crucial issue and conveying wrong information about the product.

Answer 21:
Yes, it is concerned with inflow and outflow of money and taking decisions regarding procurement and utilisation of funds.

The importance of financial management are discussed below:

1. Sound financial plan facilitates the smooth functioning of operations in an organisation.
2. Finance is required at every stage and for performing activities like distribution, promotion, production, etc. Through financial management, one can analyse the need and requirement of finance to carry out operations.
3. Financial management provides complete coordination between various functional areas such as marketing, production, etc to achieve organisational goals. If financial management is defective, the efficiency of all other departments cannot be maintained.
4. Financial management provides scientific analysis of all the facts and figures, through which it helps in taking decisions.
5. Financial management plays a very important role in the success of the business organisation by advising the top management on the solutions to various financial problems.
   Thus, we can say that financial management plays a key role in the success of business.

Answer 22:
Following steps are involved in the staffing process:

1. Estimating the Manpower Requirements It implies that company estimates the number and types of employees needed. It also analyses what type of skills, educational background, etc is required to perform a job.
2. Recruitment After estimating the number and type of candidates, second step is to search the prospective employees and stimulating them to apply for the job.
3. Selection It is the process of choosing the best among the available or we can say choosing the most suitable candidate to fill a vacant job.
4. Placement and Orientation Placement implies occupying of post by the candidate for which he is selected and orientation means introduction of new employees to the existing employees.
5. Training and Development These involve improving job knowledge, skills and attitudes of employees on a regular basis so that they may perform their jobs efficiently.

Answer 23:
Labelling is the process of putting label on the product. Generally, the producer is at liberty to choose the kind of label. But, it has been made compulsory by the government to use label for some products. Besides this, the description of label has also been fixed, e.g. It is mandatory to use the label along with its stipulated information on medicines and processed food.

A good label should provide the following information:

1. Name and address of the producer/dealer.
2. Weight and measurement of the product.
3. Size, color and appearance of the product.
4. Raw materials used in production.
5. Directions for the proper use of the product and cautions against misuse.
6. Date of packing and date of expiry.
7. Maximum retail price including local taxes.
   

Answer 24:
(i) The issue of shares through prospectus is appropriate, as suggested by Sahil, as a new company cannot issue right shares because this can only be done by existing companies. 0
(ii) There are various methods by which securities are issued in the primary market. They are:

• Offer Through Prospectus/IPO Under this method, a company invites public to subscribe for its shares through issue of prospectus, which makes a direct appeal to investors to invest in the company, through an advertisement in the newspapers and magazines.
• Offer for Sale Under this method, securities are not issued directly to the public, but are offered for sale through intermediaries like issuing houses or stock brokers.
• Private Placement Private placement is the allotment of securities by a company to institutional investors and some selected individuals. It is considered beneficial because it helps to raise funds more quickly than a public issue.
• Rights Issue This is a privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. The shareholders are offered the right to buy new shares in proportion to the number of shares they already possess. This right is called the pre-emptive right of the existing shareholders.
• e-IPOs When the public issue is made through an online system of stock exchange, it is known as e-IPO, i.e. electronic Initial Public Offer.

Answer 25:
The function of management being performed by Mrs Leena here is organising.
Organising can be defined as a process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of organisational objectives.

According to Henry Fayol, “To organise a business is to provide it with everything useful to its functioning : raw materials, machines, tools, capital and personnel.”
1. Identification and Division of Work The first step in the process of organising is to identify and divide the work into small and manageable activities so that duplication of work, resources and efforts can be avoided and the burden of work can be shared among the individuals working in the organisation.

2. Departmentalisation After the work has been identified and divided, the next step is to group the similar or related activities (jobs) into larger units called departments or divisions. This process is called departmentalisation. Departmentalisation facilitates specialisation and can be created on the basis stated below:

• Functions (purchasing, marketing, finance, etc)
• Products (cosmetics, garments, baby products, etc)
• Territory (East, West, North, South)

3. Assignment of Duties After the formation of departments, the next step is to assign or allocate work to the member of each department. The work is allocated to the members on the basis of their skills, ability and competencies. The work must be assigned to those who are best fitted to perform it well.

4. Establishing Reporting Relationships Merely allocating work is not enough. Each individual working in the organisation should also know from whom he/she has to take orders and to whom he/she is accountable. This will help in creating a hierarchical structure and help in coordination amongst various departments.

We hope the CBSE Sample Papers for Class 12 Business Studies Paper 6 help you. If you have any query regarding CBSE Sample Papers for Class 12 Business Studies Paper 6, drop a comment below and we will get back to you at the earliest.

CBSE Sample Papers for Class 12 Business Studies Paper 5 are part of CBSE Sample Papers for Class 12 Business Studies Here we have given CBSE Sample Papers for Class 12 Business Studies Paper 5.

CBSE Sample Papers for Class 12 Business Studies Paper 5

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 5 of Solved CBSE Sample Papers for Class 12 Business Studies is given below with free PDF download solutions.

Time: 3 Hours
Maximum Marks: 80

General Instructions

(i) Answer to questions carrying 1 mark may be from one word to one sentence.
(ii) Answer to questions carrying 3 marks may have about 50 to 75 words.
(iii) Answer to questions carrying 4 – 5 marks may have about 150 words.
(iv) Answer to questions carrying 6 marks may have about 200 words.
(v) Attempt all the parts of a question together.

Question 1:
The marketing manager of Illuminate Ltd, an organisation manufacturing generators has been asked to achieve a target sale of 100 generators per day. He delegates the task to 15 sales managers and 5 subordinates working under him. Identify the concept used in the above case.

Question 2:
Enumerate any two basis of departmentation in an organisation.

Question 3:
Write a limitation of demonetisation.

Question 4:
Economic environment is affected by many factors one of such factors is the general inflation rate preveiling in the country. How does the inflation rates affect the business firms?

Question 5:
“No smoking in the factory.” This statement is an example of which type of plan?

Question 6:
‘Global Diva’ is a company manufacturing high-end women accessories. The company received an order from Zing Chau Ltd, Korea. The order was in Korean language. The company got it translated and as per the translation, executed the order. However, Zing Chau Ltd refused to take delivery because the goods were not as per their specification stated in the order. Identify the barrier of communication from the above passage.

Question 7:
Identify the type of suitable organisation structure for a large scale organisation having diversified activities requiring high degree of specialisation in operations.

Question 8:
Which component of capital structure determines the overall financial risk in an organisation?

Question 9:
Mr Mukesh is a sales representative in a popular DTH company, he is required to personally assist and persuade the prospective buyers to buy the product.
Mr Mukesh is involved in which element of the promotion mix. Give any two features of that element as well.

Question 10:
Values are desirable for moral connections that are to be followed for ethical business practices. At the same time, techniques are the methods or procedures to achieve organisational goals. Then apart from values and techniques, why are the principles of management needed?

Question 11:
Explain how controlling helps in

1. accomplishing organisational goals.
2. judging accuracy of standards.

Question 12:
Dividends declared by the companies are taken as a positive note by the investors. Stock markets react positively to such decisions and share prices tend to show an upward trend. But, at the same time, it is restricted to certain extent by the Companies Act as well as the financial condition of the concern. Franco, the financial manager of Sunlight Ltd declared in the Annual General Meeting (AGM) that “It is costly to reinvest the retained earnings.” After considering his statement, what decision is taken by the board?

Question 13:
‘Decor Home’ is a furniture manufacturing company. The company has been able to earn substantial profit, yet they did not share their profits with the workers. This led to growing unrest among them leading to fall in productivity and also the quality of their work. Due to this, the company started facing the problem of falling revenues. Their HR manager Mr Dinesh advised the management to follow the principle of ‘Mental revolution’. Is the advice of HR manager appropriate? Elucidate.

Question 14:
ITC Ltd is a multi national company engaged in the business of FMCG goods, Mr Anil is currently working in it as the head of its cosmetic products segment. What kind of organisational structure is being followed in ITC Ltd? Mention any three advantages of such structure.

Question 15:
“Bending the customer according to the product” and “developing the product according to customer needs” are the two important concepts of marketing management. Identify these concepts and differentiate between the two.

Question 16:
“It can be said that management has some characteristics of profession, but it is still not a full fledged profession.” Comment whether this statement is true or false. Also give three reasons in support of your answer.

Question 17:
Mr Adarsh is a social activist. He was concerned with the pollution caused by the use of polythene bags. These bags are non-biodegradable and are a great threat for the water bodies and also adversely affect the quality of soil. To ban the use of these bags he filed a writ petition in the court. The court also identified the threats caused by these bags and passed an order banning the use of these bags on the following grounds:
(i) These bags are creating many environmental problems which affect the life of people in general.
(ii) Society in general is more concerned about quality of life.
(iii) The government decided to give subsidy to jute industry to promote this business.
(iv) Innovative techniques are being developed to manufacture jute bags at low rates.
Identify the different dimensions of business environment by quoting the lines from the above particulars.

Question 18:
Mr Daksh Mudgal, who is a vegetarian, went to a newly opened snacks corner. He asked the waiter for a menu but the waiter informed him that the menu cards are in printing. Then Mr Mudgal specifically asked for the options available for vegetarians. The waiter informed him about the available options and Mr Mudgal chose a particular sandwich. He again specifically asked the waiter if the sandwich, was veg, to which the waiter replied affirmatively. While eating, he found that the snack had non-vegetarian content. The packaging of the product did not display that the product had non-vegetarian content

1. What values are affected by this?
2. Will Mr Daksh Mudgal be able to claim compensation? Which right of the consumer is violated here?

Question 19:
“Marketing plays an important role not only in the growth of a firm but also in the development of an economy.” Discuss.

Question 20:
Define stock exchange and explain two features of stock exchange.

Question 21:
Blue Pharmacy is a company engaged in the production of life-saving drugs. The company has no internal system of performance appraisal and for the past two years, it has not declared any incentives or bonus to its employees, inspite of enormous profits. One of its employee, Mr Sangeet has discovered a new medication for ‘dengue’ during in-house research. The company has got patent on it in its own name and no reward or compensation was given to Sangeet. All these factors have de-motivated the employees and the company is started facing the problem of high employee turn over rate, increased absenteeism, falling levels of productivity, etc.
Due to a combined result of all these factors, Blue Pharmacy was not able to meet its organisational objectives.

1.  Design a control plan, suggesting measures to Blue Pharmacy to be able to achieve its objectives.
2. After controlling these factors, what values are being satisfied?

Question 22:
Staffing is one of the most complex and crucial step which ensures success of any business organisation. Staffing requires a lot of time and efforts. Briefly explain first five steps involved in the process of staffing.

Question 23:
The role of financial management cannot be under estimated, since it has a direct bearing on the financial health of a business. The importance of financial decisions can be judged by the fact, that almost all items of financial statements are affected by them. In the light of the above, explain the functions of financial management.

Question 24:
Ela is running a successful business of providing high-end beauty services to the upper section of society. Her parlour boasts of innovative beauty products. She has an in-house training programme for new employees. Also, she believes in high standards of performance and shares her profits with her employees. She also gives them yearly bonus and salary hikes. But still she feels that her employees are not as motivated as she wants them to be.

1. Are financial incentives the only way to motivate employees?
2. What are non-monetary incentives?
3. State any four non-monetary incentives which contribute to the performance of employees.

Question 25:
The first step in the process of planning is setting objectives. After that development of premises is done. Then various alternatives are identified. Explain the further process (steps) required to complete the process.

Answers

Answer 1:
Decentralisation of authority as manager delegates the authority throughout the levels of an organisation.

Answer 2:
The two basis of departmentation in an organisation are enumerated below:

1. Territories (North, South, East, West)
2. Products (appliances, clothes, cosmetics, etc)

Answer 3:
Demonetisation of the currency has caused huge inconvenience to the people. Cash crunch is a major problem due to the unavailability of small currency denominations.

Answer 4:
Increase in inflation rates directly affects the economic environment as it increases the cost of production, due to which profits of business firms are adversely affected.

Answer 5:
It is an example of rule.

Answer 6:
The barrier of communication identified in the above passage is faulty translation, which is a form of semantic barrier.

Answer 7:
Divisional structure is suitable for a large scale organisation having diversified activities requiring high degree of specialisation in operations.

Answer 8:
Debt determines the overall financial risk in an organisation’s capital structure.

Answer 9:
Mr Mukesh is involved in personal selling.
Following are the two features of personal selling:

1. Face-to-face Dialogue In personal selling, a direct face-to-face dialogue takes place that involves an interactive relationship between the seller and the buyer.
2. Development of Relationship Personal selling allows a salesperson to develop personal relationship with the prospective customers, which may facilitate in making sales.

Answer 10:
Management principles are essential for the successful running of business organisation. Its significance or need can be enumerated with the help of the points given below:

1. Optimum Utilisation of Resources Several principles of management, such as unity of direction, division of labour, etc help in optimum utilisation of resources.
2.  Scientific Decisions The knowledge of management principles enables managers to learn about the
   cause and effect relationship between variables operating in the organisation. This helps them to develop a scientific approach to solve problems.

Answer 11:
(i) Accomplishing Organisational Goals The controlling function measures the accomplishment against the standards and corrects deviations. This helps in ensuring that organisation is moving on the right , track to achieve organisational goals.
(ii) Judging Accuracy of Standards A sound controlling system helps the management to verify whether the standards set are accurate and relevant or not. It keeps a careful check on the changes, which are taking place in the organisation.

Answer 12:
Company’s net earnings are divided into two parts: retained earnings and dividend. If the company has profitable investment options then, it would like to retain the earnings and reinvest rather than distribute it as dividend. But in the given case, the condition is not favourable for reinvesting. Thus, the board may take the residual decision which means the.company will pay dividends as the reinvestment is not profitable.

Answer 13:
Yes, the advice of the HR manager is appropriate.
The basic idea behind the principles of scientific management is to change the mindset or outlook of the workers and the management towards each other. Taylor called it ‘mental revolution’.

Mental revolution insists on the following:

1. Change in mental attitude of workers and management towards each other.
2. Co-operation between workers and management.

Mental revolution can also be stated as ’bilateral mental revolution’. It requires that management should create suitable working conditions and provide an opportunity to workers to participate in the management and should be entitled to share surplus generated in the business.

Answer 14:
ITC Ltd is divided into various segments based on the products in which it deals, therefore it can be said that divisional structure of management is being followed in ITC Ltd. following are the main advantages of divisional structure:

1. It helps managers to develop varied skills related to a product and facilitates managerial development.
2. In divisional structure, fixation of accountability and responsibility is easy.
3. With more initiative and flexibility, decisions are taken much faster in divisional structure.

Answer 15:
(i) Bending the Customer According to the Product This statement is related with the selling concept.
(ii) Developing the Product According to Customer Needs This statement is related with the marketing concept.

Difference between selling concept and marketing concept are :

Answer 16:
On studying management as a profession, it can be said that management is not a full fledged profession but only a developing profession, therefore the said statement is true.
Following are the three main reasons in support of the said statement:

1. Like profession, management has a well defined body of knowledge which can be acquired through courses like MBA, BBA, etc.
2. Entry into the profession of management is not restricted through any examination or degree.
3. Unlike other professions, membership of any professional association is not mandatory for managers.

Answer 17:
(i) “The Court passed an order to ban polythene bags.” The quoted line is depicting the legal environment. Business has to function within the framework of laws and regulations of the country. Legal environment exercises significant influence on business activities.
(ii) “Polythene bags are creating many environmental problems which affect the life of people in general and society in general is more concerned about quality of life.” These quoted lines are depicting the social environment, which consists of all the social and cultural forces within which business firms operate.
(iii) “The Government decided to give subsidy to jute industry to promote this business.” The quoted line is depicting the political environment, which is concerned with the forces related with political stability and political conditions that have strong impact on business.
(iv) “Innovative techniques are being developed to manufacture jute bags at low rates.” The quoted line is
depicting the technological environment. It includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services.

Answer 18:
(i) Honesty and responsible behaviour are the two values that affected by this, as complete information about the product is not provided.
(ii) In the given case, there is a violation of the consumer right, ‘Right to Information’. According to the Amendment of the Regulations in Weight and Measurement Act, 2000, every product should bear a green dot for veg ingredients and brown for non-veg ingredients. This statutory provision was not fulfilled by the snack corner.
Hence, Mr Daksh Mudgal can claim compensation.

Answer 19:
The process of marketing plays an important role in a firm and in the economy, as explained below :

Role in a Firm Marketing emphasises customer satisfaction as the key to survival and growth of an organisation. It helps to focus the activities of the organisation on fulfilling the needs and wants of consumers, by designing the product according to them. This helps to develop brand loyalty and bring prosperity for the firm.

Role in the Economy Marketing acts as a catalyst in economic development of a country and helps in raising living standard of the people. Marketing inspires people to undertake various activities and to set-up enterprises for producing goods that are demanded in the market and ensure smooth flow of goods through efficient distribution system. It helps to establish linkages between the business, accelerating economic activity, leading to higher incomes, more consumption, increased savings and investment.

Answer 20:
According to Pyle, “Stock exchanges are market places where securities that have been listed there on, may be bought and sold for either investment or speculation.’’
Following are the two features of stock exchange:

1.  Organised Market Stock exchange is an organised market. Every stock exchange has a management committee which has all the rights related to management and control of exchange.
   All the transactions taking place in the stock exchange are done as per the prescribed procedure under the guidance of management committee.
2. Dealing in Securities Issued by Various Concerns Only those securities are traded in the stock
   exchange which are listed there. After fulfilling certain terms and conditions, a company can get its securities listed on stock exchange.

Answer 21:
(i) Under such circumstances, Blue Pharmacy should implement a control plan covering following points:

• Performance based appraisal system should be introduced.
• Employees like Mr Sangeet should be given due acknowledgment for their achievements.
• Proper communication of tasks should be made and feedback should be collected from time to time.

(ii) Following values are satisfied :

• Orderliness
• Discipline
• Flonesty
• Commitment and hardwork

Answer 22:
First five steps in the process of staffing are as follows:
(i) Estimating Manpower Requirements It refers to finding out the number of persons or employees and type of employees needed in the organisation in the near future. As both overstaffing and understaffing are undesirable, the manager tries to find out the manpower requirement by equating work load analysis to workforce analysis.
(ii) Recruitment It refers to the process of inducing people to apply for the job in the organisation. After assessing the number and type of required employees, the manager tries to get greater number of applicants for the job, so that the organisation can select better candidates.
(iii) Selection It refers to the choosing of most suitable candidate to fill the vacant job position. Selection is done through a process, which involves tests, interviews, etc.
(iv) Placement and Orientation In this step, employee occupies the position or is placed, for which he/she has been selected. After this a brief presentation about the company is given and employee is introduced to his superiors, subordinates and colleagues.
(v) Training and Development In this step, training is imparted to the selected candidate, by which he/she can enhance his/her skills, knowledge and through this, one can also explore the opportunities for future growth.

Answer 23:
The functions of financial management relate to three major decisions which every finance manager has to take.

The three essential functions of financial management are:

(i) Investment Decision This decision relates to careful selection of assets in which funds will be invested by the firms. A firm has many options to invest their funds but firm has to select the most appropriate investment which will bring maximum benefit for the firm and deciding or selecting most appropriate proposal is investment decision.

(ii) Financing Decision Finance manager has to take this decision by deciding the source of finance. A company can raise finance from various sources, i.e. by issue of shares, debentures or by taking loans and advances. Deciding how much to raise from which source is the concern of financing decision.
The main sources of finance can be divided into two categories which are given below :
(a) Owner’s fund
(b) Borrowed fund

(iii) Dividend Decision This decision is concerned with distribution of surplus funds. The profit of the firm is distributed among various parties, such as creditors, employees, debenture holders, shareholders, etc. The surplus profit is either distributed to equity shareholders in the form of dividend or kept aside in the form of retained earnings. Under dividend decision, the finance manager decides, how much to be distributed in the form of dividend and how much to keep aside as retained earnings.

Answer 24:
(i) No, financial incentives are not the only way to motivate employees. Employees can also be motivated with the help of non-monetary incentives.
(ii) Non-monetary Incentives These are not directly related with money. These incentives help in the satisfaction of top hierarchy needs like respect, self-actualisation, etc.
(iii) Following are the four important types of non-monetary incentives:

(a) Status It means the position or rank of a person in the organisation. It can be high or low. The rank of an employee is directly linked with his authority, responsibility and other facilities (e.g. A separate cabin, costly furniture, car, peon, PA, etc). Everybody has a wish for a higher status. Therefore, the employees can be motivated by raising their rank or position. The attainment of a higher status fulfils the psychological, social and esteem needs.
(b) Career Advancement Opportunity Every employee of the organisation wants to advance in his life. Promotion is an important example of advancement. When the avenues for promotion are available, the employees certainly get motivated.
(c) Employee Recognition Programmes Every employee wishes to be considered as an important part of the organisation. It means that he should have his own identity and he should appear to be distinctive. The manager should distribute work among the employees in such a manner which gives a feeling to every employee that his work is special and he alone is capable of doing it. By getting such kind of importance, they are motivated and work harder in a more responsible manner.
(d) Employee Participation Employees get encouraged if they are allowed to participate in managerial
works. Therefore, they offer their full cooperation in making successful the policies prepared with their help.

Answer 25:
The first step in the process of planning is setting objectives. After that development of premises is done.
Then various alternatives are identified. After this, the following steps are followed to complete the process of planning:

(i) Evaluating Alternative Courses After making the list of various alternates alongwith the assumptions supporting them, the manager starts evaluating each and every alternative and note down the positive and negative aspects of each alternative. After this, the manager starts eliminating the negative aspects and the one with maximum positive aspects is selected as the best alternative.
(ii) Selecting an Alternative This is the most crucial point of decision-making. The best plan has to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with least negative consequences.
(iii) Implementing the Plan This is the step where other managerial functions also come into the picture. This step is concerned with putting the plan into action, i.e. doing what is required, e.g. If there is a plan to increase production, then more labour and machinery will be required. This step executes the main plan.
(iv) Follow up Action To see whether plans are being implemented and activities are performed according to schedule, is also a part of the planning process. Monitoring the plans is equally important to ensure that objectives are achieved properly.

We hope the CBSE Sample Papers for Class 12 Business Studies Paper 5 help you. If you have any query regarding CBSE Sample Papers for Class 12 Business Studies Paper 5, drop a comment below and we will get back to you at the earliest.

CBSE Sample Papers for Class 12 Business Studies Paper 4 are part of CBSE Sample Papers for Class 12 Business Studies Here we have given CBSE Sample Papers for Class 12 Business Studies Paper 4.

CBSE Sample Papers for Class 12 Business Studies Paper 4

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 4 of Solved CBSE Sample Papers for Class 12 Business Studies is given below with free PDF download solutions.

Time: 3 Hours
Maximum Marks: 80

General Instructions

(i) Answer to questions carrying 1 mark may be from one word to one sentence.
(ii) Answer to questions carrying 3 marks may have about 50 to 75 words.
(iii) Answer to questions carrying 4 – 5 marks may have about 150 words.
(iv) Answer to questions carrying 6 marks may have about 200 words.
(v) Attempt all the parts of a question together.

Question 1:
A decision is taken to distribute certain part of the profit to shareholders after paying tax. What is this decision called?

Question 2:
“Management is an intangible force.” Explain.

Question 3:
What is the key feature of divisional structure?

Question 4:
Is directing necessary at planning stage? Give reason in support of your answer.

Question 5:
Which money market instrument is also known as zero coupon bond?

Question 6:
Mention any two parties who can file a complaint before the appropriate consumer forum.

Question 7:
Classify plans on the basis of duration of use.

Question 8:
Silver Tech Limited is a start-up company engaged in developing nano-technology for mobiles. The debt component is quite high in the capital structure of the company. Identify the risk which the company can face in future.

Question 9:
Give the various sources of recruitment and differentiate between the two internal sources.

Question 10:
Explain any three factors affecting capital budgeting decisions.

Question 11:
“Expenses on training is an investment and not a wastage.” Clarify. Also give any two advantages of training for the organisation.

Question 12:
Over the years, Brook Bond Taj Mahal tea has been a choice of millions of customers. The company uses the slogan ‘Waah Taj’ on its label. Their price range, quality and taste are different and unique from their competitors. What are the advantages of labelling a product shown in this case?

Question 13:
Management is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.” In the light of the above statement, explain any three features of management.

Question 14:
Give the positive and negative effects (any two) of the following principles of management:
(i) Equity
(ii) Stability of personnel

Question 15:
“Stock exchange works through its operators.” In the light of this statement, discuss any four types of operators working on a stock exchange.

Question 16:
Lately, many companies have planned for significant investments in organised retailing in India. Several factors have prompted their decision in this regard. Customers’ income is rising. People have developed a taste for better quality products even though they may have to pay more. The aspiration levels have increased. The government has also liberalised its economic policies in this regard and permitted even cent percent foreign direct investment in some sectors of retailing. In what ways, Indian managers have responded to change in the post liberalisation era?

Question 17:
Describe briefly multi-dimensional function of management.

Question 18:
How directing helps in efficient and effective functioning of the organisation? Explain by giving any four points.

Question 19:
A car manufacturing company sets a goal that in future they will expand their production by 15%. After measuring the performance, they noticed that the production has declined by 10% and the raw material is wasted by the production department.
(i) Can you find out, to which concept of controlling does it relate?
(ii) What values are being ignored in this case?

Question 20:
Name the decision, a financial manager takes keeping in view the overall objective of maximising shareholders’ wealth. Also, explain any four factors affecting the decision.

Question 21:
‘Millenium’ is a reputed B-school of Jaipur. It is offering lots of management degree programmes in the fields of finance, marketing, human resource, rural development, hospitality and information technology. The institute advertises that it has a 100% placement records, with many of its students being placed in top MNCs across the globe. The highest salary package to a student of the institute was
₹12.5 lakh per annum.
The advertisement also shows the campus to be well infrastructured. Influenced by this advertisement, hundred of students take admission in this institute. On taking admissions, the students learn that the campus shown in the advertisements was not the one that they were studying in and also that the institute is running only diploma and certificate courses, as it is not recognised by AICTE and therefore cannot issue degrees. The placement statistics were also misleading.
(i) As per your understanding, what are the values missing?
(ii) What steps should be taken by the student against these frauds?

Question 22:
”Some plans are formulated by companies to deal with situations that can occur again and again.” Identify the type of plan and explain any four of them.

Question 23:
Two managers are arguing that planning is looking ahead and controlling is looking back. As per your opinion, who is correct and why? Also explain how controlling helps in
(i) accomplishing organisational goals.
(ii) judging accuracy of standards.

Question 24:
My Car Ltd decided to set-up its new car manufacturing factory in the backward area of West Bengal where very less job opportunities were available. People of that area welcomed this effort of My Car Ltd. The company also decided to provide facilities like school, hospital, market, etc. in the factory premises so that people are attracted to join the factory as workers. My Car Ltd started earning huge profits. Another competing company asked its production manager Arvind to investigate the reasons of earning huge profits by My Car Ltd.

Arvind found that in both the companies there was systematic coordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his organisation communication took place
only through the scalar chain, whereas My Car Ltd was allowing flow of communication in all the directions as well as quick . feedback.
(i) Identify the type of organisation which allows the flow of communication in all directions.
(ii) Also state the advantages of such type of organisation.

Question 25:
What do you mean by promotion mix? Explain its components.

Answers

Answer 1:
Dividend decision is taken to distribute certain part of the profit to shareholders after paying tax.

Answer 2:
Management is an unseen force whose presence can be felt when an organisation functions. Orderliness, discipline, cleanliness, etc all reflect the presence of good management. Hence, management is said to be an intangible force.

Answer 3:
The key feature of divisional structure is that it comprises of separate business units as divisions.

Answer 4:
No, directing is not necessary at planning stage, it is necessary at execution/operational stage.

Answer 5:
Treasury bill is also known as zero coupon bond.

Answer 6:
A complaint before the appropriate consumer forum can be made by the persons named here under:

1. Any consumer
2. A legal heir of a deceased consumer

Answer 7:
On the basis of duration of use, plans can be classified as follows:

1. Single use plans
2. Standing plans

Answer 8:
The company can face financial risk. It refers to a position, when a company is not able to meet its fixed financial charges namely interest, preference dividend, payment and repayment obligations. It arises due to higher use of debt.

Answer 9:
The sources of recruitment can be broadly classified as follows:
(i) Internal Sources These sources refer to recruitment within the organisation, from the existing staff and employees.
Two internal sources of recruitment are as follows:
(a) Transfers (b) Promotions
(ii) External Sources These sources refer to recruitment from outside the organisation.
Difference between Transfers and Promotions

The difference between transfers and promotions are:

Answer 10:
Following are the three factors affecting capital budgeting decision:

1. Cash Flows of the Project When a company takes an investment decision involving huge amount, it expects to generate some cash flows over a period. The amount of these cash flows should be carefully analysed before considering a capital budgeting decision.
2.  The Rate of Return It is the most important criteria to decide the investment proposal, as a higher rate of return would induce more m ‘estment and vice versa.
3. Investment Criteria The manager must compare and analyse the amount of investment, cash flows, interest rate, etc of various proposals and then take a decision.

Answer 11:
Expenses on training is an investment and not a wastage, as expenses incurred on training today will provide benefit to the organisation for a long-term in the form of increased efficiency of the employees.

The benefits of training and development to an organisation are as follows:

1. Training is a systematic learning, always better than hit and trial methods which leads to wastage of efforts and money.
2. It enhances employees’ productivity both in terms of quantity and quality, leading to higher profits

Answer 12:
Advantages of labelling which are shown in this case are as follows:
(i) It helps to assess the supermacy of a product over other competing products.
(ii) It raises the prestige of a product and guarantees the standard of the product.
(iii) It helps to establish brand loyalty of the customers towards the product.

Answer 13:
The above said statement is true. In the light of above statement, features of management are as follows:

1. Management is a Goal-oriented Process Objectives refer to the end result to be achieved through operations. They are set for the organisation as well as all departments. Management seeks to achieve these objectives through co-ordinated efforts.
2. Management is all Pervasive Management is necessary to conduct all types of activities whether it is a business or non-business activity. It is equally applicable in private and public enterprises, small and large enterprises, government and non-government enterprises. So, it is equally required in a petrol pump, a hospital, an office, whether in India, USA or Japan.
3. Management is a Continuous Process Management is an ongoing process of planning, organising, staffing, directing and controlling which brings the management cycle back to planning.
4. Group Activity An organisation is a collection of diverse activities and different individuals. Through
   coordination and teamwork, management unites the efforts of individuals to achieve organisational goals, alongwith the fulfilment of personal goals of the individuals.

Answer 14:
(i) Equity

Two positive effects of equity are given below:
(a) It ensures loyalty among the workers.
(b) It emerges cordial relation between workers and managers.

Two negative effects of equity, if violated are given below:
(a) Dissatisfaction among employees leading to greater employee turnover.
(b) It emerges poor relations between workers and managers.

(ii) Stability of Personnel

Two positive effects of stability of personnel are stated below:
(a) It encourages job security in the organisation.
(b) It increases motivation among employees.

Two negative effects of stability of personnel, if violated are stated below:
(a) It leads to increase in labour absenteeism.
(b) It Increases job insecurity thus, employees tend to leave jobs frequently leading to high turnover.

Answer 15:
There are four types of operators working on a stock exchange as given below:

1. Bull A bull is a speculator, who expects rise in price. He buys securities with a view to sell them in future at a higher price and making profit out of it. In Mumbai Stock Exchange, he is known as Tejiwala.
2. Bear A bear is a speculator, who expects fall in price. He sells securities which he does not want to possess. He is known as Mandiwala in Mumbai Stock Exchange.
3. Broker He is a member of stock exchange. He buys and sells securities on behalf of outsiders, who are not the members of the stock exchange. He charges brokerage or commission for his services. He buys and sells all types of securities as demanded by investors.
4. Jobber He is also a member of stock exchange. He buys and sells securities on his own behalf. He is specialised in one type of security and makes profit by selling the securities at a higher price. In Mumbai Stock Exchange, he is known as Tarawaniwala.

Answer 16:
Indian managers have responded to change in the post liberalisation era in the following ways:

1. By consolidation of MNCs.
2. By adopting varied strategies of markets.
3. By focussing more on the interests of the customers.
4. By adopting labour workforce management.
5. By increasing production capacity.
6. By high compensation levels.
7. By implementing strategy of mergers and acquisitions.
8. By adopting Capital structure reforms.

Answer 17:
Management is multi-dimensional i.e. management is a complex activity.

It has three dimensions which are discussed below:
(i) Management of Work All organisations exist for the performance of some work. It translates the work into goals, e.g. A product is produced in factory and then it is transported to the store where customers purchase it and their needs are satisfied.
(ii) Management of People Human resources are the greatest assets of an organisation. The task of management is to make people work towards achieving the organisational goals.
(iii) Management of Operations This refers to a production process, which entails the flow of input material and technology for transforming input into the desired output for consumption. It is interlinked with both management of work and management of people.

Answer 18:
The following four points highlight how directing helps in efficient and effective functioning of an organisation:
(i) Integrates Employees Directing integrates employees’ efforts in an organisation in such a way that every individual’s effort contributes to the welfare of the organisation. Thus, it ensures that employees work efficiently for the attainment of goals.
(ii) Improves Efficiency Directing guides employees to fully realise their potentials and capabilities. Through
this function, managers utilise the potential of employees and motivate them to work to the best of their ability and contribute their maximum effort towards the achievement of organisational objectives.
(iii) Facilitates Change Business environment is changing very frequently but people generally have a tendency to resist change. In this context, directing helps manager to persuade his subordinates to carry out changes from time to time and cope with changes in the environment.
(iv) Helps in Achieving Goals The work in the organisation starts with directing the employees towards the pre¬determined goals. Proper directing helps in unity of action and achieving organisational goals.

Answer 19:
(i) The concept of controlling which is being quoted is ‘comparing actual performance with standards’. After measuring the actual performance, it is being compared with the standards. In this case, the standard set is to increase production by 15% but actually it has declined by 10%. Infact the next step, i.e. ‘analysing deviations’ has also been undertaken and it is found out that raw materials have been wasted by the production department.
(ii) The values ignored here, are:
(a) Lack of commitment and hard work.
(b) Wastage of resources and lack of responsible behaviour towards achieving targets.

Answer 20:
The above said decision is financing decision. It is concerned with the decisions about how much funds are to
be raised from which long-term source, i.e. by means of shareholders funds or borrowed funds.
The factors affecting financing decisions are : (any four)

1. Cost The cost of raising funds from different sources are different. A wise finance manager opts for the cheapest source of finance.
2. Risk The risk associated with each of the source is different. The source which involves least risk should be preferred.
3. Cash Flow Position of the Company A stronger cash flow position may make debt financing more viable than funding through equity.
4. Control Considerations Issue of more equity may dilute shareholders’ control over the business. Therefore, a company afraid of a takeover bid may prefer debt to equity.
5. State of Capital Market If the stock market is rising, then it is easy to sell equity shares. But in a depressed capital market, the company has to opt for debt financing.

Answer 21:
(i) As per our opinion, the social and ethical values are missing. They are cheating the students, who are the pillars of nation. If they will be successful in their career, they can contribute a lot towards the development of our nation. But by providing misleading information, they are cheating students and spoiling their careers.
(ii) Following steps should be taken by the students:
(a) Students should boycott against this and provide all information of cheating and fraud to the local print media.
(b) Students should not blindly believe on the words of counsellors. They should collect all relevant information from different possible sources. –
(c) They should ask for redressal against unfair practices of the institute and can also ask for the
compensation.
”Some plans are formulated by companies to deal with situations that can occur again and again.” Identify the type of plan and explain any four of them.

Answer 22:
Standing plans are formulated by companies to deal with situations that can occur again and again.
The types of standing plan are as follows : (any four)

1. Objectives It can be said to be the desired future position that the management would like to reach.
2. Strategy A strategy is a comprehensive plan for accomplishing an organisation’s objectives.
3. Policy These are general statements that guide thinking or channelise energies towards a particular direction.
4. Procedure It describes the exact manner, in which a certain activity is to be performed.
5. Method It provides the prescribed ways or manner, in which a task has to be performed, considering the objectives.

Answer 23:
In my opinion, both are correct.
Planning is forward looking as plans are prepared for future and are based on forecasts about future conditions. On the other hand, controlling is looking back. It implies that it is like a postmortem of past activities to find out deviations from the standards.
However, it should also be noted that planning is backward looking also as it is guided by past experience and feedback report of controlling function and controlling is forward looking, as it does not end only by comparing the past performance with standards, it also helps in finding the reason for deviation and suggest the measures.
Thus, from the above description, we can conclude that planning and controlling are both forward as well as backward looking.
Controlling is essential as it helps in

1. Accomplishing Organisational Goals It measures the accomplishment of work against the standards and corrects deviations. This helps in ensuring that organisation is moving on right track to achieve the organisational goals.
2. Judging Accuracy of Standards A sound controlling system helps the management to verify whether
   the standards set are accurate and objective. It keeps a careful check on the changes, which are taking place in the organisation and in the environment, thereby helping to review and raise the standards in the light of such changes.

Answer 24:
(i) The type of organisation discussed here is informal organisation.
Interaction among people at work gives rise to a network of social relationships among employees. This is called informal organisation, e.g. meeting in a cafeteria, drama group in an organisation and cricket teams of organisational personnel, are all examples of informal organisations.
(ii) Advantages of informal organisation are as follows :

• Prescribed lines of communication are not followed. Thus, it facilitates quick feedback and spreads information faster.
• It provides a sense of belongingness and gives due respect to social and psychological needs.
• It provides the necessary environment for individual creativity and innovation.
•  It contributes to fulfilment of goals, promoting the feeling of cooperation among employees.

Answer 25:
Promotion Mix It refers to combination of promotional tools used by an organisation to achieve its
communication objectives. It consists of all the activities aimed at persuading customers to buy the product.
It includes communication activities undertaken to inform and convince customers.
Various components used by the marketers are given below:

• Advertising It is a non-personal visible communication which is paid for by an identified sponsor.
• Sales Promotion It refers to short-term activities or incentives which are aimed at encouraging purchase of products.
• Personal Selling It involves direct and face to face personal interactions between the sales person and potential customers.
• Public Relations This is the communication of a product, brand or business by placing information about it in the media without paying for the time or media space directly.

We hope the CBSE Sample Papers for Class 12 Business Studies Paper 4 help you. If you have any query regarding CBSE Sample Papers for Class 12 Business Studies Paper 4, drop a comment below and we will get back to you at the earliest.

CBSE Sample Papers for Class 12 Business Studies Paper 3 are part of CBSE Sample Papers for Class 12 Business Studies Here we have given CBSE Sample Papers for Class 12 Business Studies Paper 3.

CBSE Sample Papers for Class 12 Business Studies Paper 3

Students who are going to appear for CBSE Class 12 Examinations are advised to practice the CBSE sample papers given here which is designed as per the latest Syllabus and marking scheme as prescribed by the CBSE is given here. Paper 3 of Solved CBSE Sample Papers for Class 12 Business Studies is given below with free PDF download solutions.

Time: 3 Hours
Maximum Marks: 80

General Instructions

(i) Answer to questions carrying 1 mark may be from one word to one sentence.
(ii) Answer to questions carrying 3 marks may have about 50 to 75 words.
(iii) Answer to questions carrying 4 – 5 marks may have about 150 words.
(iv) Answer to questions carrying 6 marks may have about 200 words.
(v) Attempt all the parts of a question together.

Question 1:
In which type of plan, the sequence to perform a job is determined?

Question 2:
Rita wants to buy a packet of juice. As an aware customer, how can she be sure about the quality of juice she plans to buy?

Question 3:
There are several techniques for measurement of actual performance as a step of process of controlling. What does these techniques include?

Question 4:
Distinguish between functional structure and divisional structure on the basis of formation.

Question 5:
ABC Ltd, a reputed industrial machines manufacturer, need ₹20 crore as additional capital to expand their business. Mr Kunal, the Chief Executive Officer (CEO) of the company wants to raise funds through equity. The finance manager, Mr Amit, suggested that the share may be sold to investing public through intermediaries, as the same will be less expensive. The proposal was accepted.
Name the method through which the company decided to raise additional capital.

Question 6:
“Introducing a scheme of 50% + 40% less by Koutons,” is the example of which sales promotion technique?

Question 7:
A fashion design house has the following main jobs:
(a) Manufacturing
(b) Finance
(c) Marketing
(d) Personal
(e) Research and development
Which organisational structure will you prefer for this type of a company

Question 8:
The net income of XYZ Ltd is ₹10,20,000 and sales for the year are ₹70 lakh. The total investment in the business amounts are ₹90 lakh. Find out the return on investments for XYZ Ltd.

Question 9:
Identify the type of products in the following cases and give an example of each type.

1.  Purchase of goods in which buyers devote considerable time to compare quality.
2. Consumer products which are purchased frequently, immediately and with least time and efforts.

Question 10:
There are some barriers in communication which are concerned with organisational structure and regulations. Discuss briefly any three of its barriers.

Question 11:
Which institution is known as the watch dog of securities market in India?

Question 12:
Name the level of management, to which the following parts belong:

1. Mr A is a purchase manager in XYZ Ltd.
2. Mr A is a CEO in XYZ Ltd.
3. Mr A is a superintendent in XYZ Ltd.

Question 13:
Explain the following features of planning:

1.  Planning focuses on achieving objectives.
2. Planning establishes standards for controlling.

Question 14:
Rahul, a worker, is given a target of assembling two computers per day. Due to his habit of doing things differently, an idea struck him which would not only reduce the assembling time of computers, but would also reduce the cost of production of computers. Rahul’s supervisor instead of appreciating him, ordered him to complete the work as per the methods and techniques decided earlier, as nothing could be changed at that stage.

1. Identify the limitation of planning, as discussed in the above para.
2. In addition to the above limitation, discuss three more limitations of planning.

Question 15:
Mrs Hansaben Shah had bought a silk saree from Alka Saree Center for ₹7,000. She wore the saree on a couple of occasions but even before a wash it started tearing on its own. She complained to the dealer who said good once sold could not be taken back nor refund was possible.

1. What values of a customer are affected in this case?
2. What right can be exercised by the buyer in this case?

Question 16:
The directors of Kashyap Ltd, an organisation manufacturing computers, wants to double the sales and have given this responsibility to their sales manager. The sales manager has no authority either to increase the sales promotion expenses or appoint new salesmen. Hence, he could not achieve this target.

1. Is the sales manager responsible for not achieving the target?
2. Which principle of management is violated here?
3. State any two effects, if this principle is violated.

Question 17:
Discuss any four points highlighting the importance of delegation for an organisation.

Question 18:
What do you mean by working capital? Explain any three factors affecting the requirement of working capital.

Question 19:
On 8th November, 2016, Prime Minister Narendra Modi banned ₹ 500 and ₹ 1,000 currency notes by implementing demonetisation policy. In the context of this statement, explain any four features of demonetisation.

Question 20:
” An ideal control technique is the one that checks every bit of performance.” Comment.

Question 21:
National Optic Fibre Network (NOFN) Project, one of the most expensive and ambitious projects in India’s technology history, connects 2,50,000 Gram Panchayats in the country with a fibre optic network.

1.  As per the reader’s view, the above project is associated to which dimension of business environment?
2. How this project adds value to the society?

Question 22:
Blue Bell School believes in all round development of children, focusing both on academics and on sports and extra-curricular activities. Many students of this school have secured ranks at the state level in the board exams and also some of the students have excelled at the state and national games. One of the key reasons for such excellent performance of the students is that the school hires highly qualified teachers and pays them well. The school has presently vacancies for middle level classes. The internal sources have been exhausted. Explain any five sources of recruitment that the school can use for filling up these vacancies.

Question 23:
There are two companies B and D. Total contribution of capital is ₹40 lakh each. The ratio of equity to total capital in company B is ₹10 lakh and debt is ₹30 lakh while in company D, the total equity capital is ₹40 lakh, sourced through equity. EBIT is ₹8 lakh, the interest rate on debt is @ 10% and the tax rate is 30%. Which company enjoys favourable financial leverage?

Question 24:
Markfed Foods Pvt Ltd has appointed a new HR manager, who has completed his MBA from the most renowned institution in India. He was a gold medalist and has also been acknowledged as the best employee during his internship in a firm. Soon after his joining, the management noticed a drastic change in the attitude of workers towards their work.
They were willing to accept new challenges, take up more challenging jobs and were able to achieve targets efficiently and effectively. Soon, the company prospered and established its name in the market. On being enquired, he confessed that all this change is attributed to Maslow’s Theory of Motivation. Briefly explain Maslows Need Hierarchy Theory and also state the assumptions on which it is based.

Question 25:
What do you mean by channels of distribution? What functions do they play in the distribution of goods and services? Explain.

Answers

Answer 1:
Procedure is one of the types of standing plan which determine the sequence to perforn a job.

Answer 2:
Rita should look for FPO mark on the packet, which is a quality indicator for beverages.

Answer 3:
It includes sample checking, personal observation and preparing performance reports.

Answer 4:
Difference between functional structure and divisional structure is:

Answer 5:
Offer for sale is the method through which the company decided to raise additional capital.

Answer 6:
The name of sales promotion technique is discount.

Answer 7:
Functional organisational structure will be suitable for this type of organisation.

Answer 8:
Return on Investment = \(\frac { Net Income }{ Total Investment }\) x 100 = \(\frac { 10,20,000 }{ 90,00,000 }\) x 100 = 11.33%

Answer 9:
(i) Shopping Products They are the products that require considerable time and effort e.g. Colour TV, jewellery, etc.
(ii) Convenience Products These products require minimum time and effort and are purchased frequently by the customers e.g. Salt, soap, toothpaste, etc.

Answer 10:
The three organisational barriers are as follows:

1. Organisational Policy Communication is hampered, if the policy of an organisation does not support the freeflow of communication.
2. Status Status of a superior may create a psychological distance between him and are his subordinates. A status conscious manager does not easily communicate with his subordinates.
3. Rules and Regulations Rigid rules and cumbersome procedures act as a barrier to effective communication. Communication through the prescribed channels may result in delays.

Answer 11:
Securities Exchange Board of India (SEBI) is the watch dog of the securities market. It performs various functions to regulate and protect the interests of investors while dealing with securities.
The functions performed by SEBI to facilitate this role are as follows:

1. Registration of brokers and sub-brokers in the market.
2. Registration of collective investment schemes and mutual funds.
3. Controlling takeover bids and imposing penalties for such practices.
4. Prohibition of fraudulent and unfair trade practices.

Answer 12:
(i) Middle Level This level includes head of the departments such as purchase manager, finance manager, etc.
(ii) Top Level This level includes chief executives, managing directors, etc.
(iii) Operational Level This level includes foreman, inspectors, superintendent, etc.

Answer 13:
(i) Planning Focuses on Achieving Objectives Planning involves the determination of activities required to be undertaken to achieve objectives of organisation. Thus’, it can be said that it focuses on achieving objectives.
(ii) Planning Establishes Standards for Controlling Planning involves setting-up of objectives, which act as the standards against which actual performance is measured. This helps in finding deviations and taking corrective action in the controlling process.

Answer 14:

1. As per the above mentioned para, the limitation highlighted is‘planning reduces creativity’.
2. The other three limitations of planning are:
   • It involves huge costs i.e., it usually involves a lot of time, effort and cost of managers.
   • Success of planning rests on its implementation. Lack of proper implementation may lead to failure of planning. Thus, planning does not guarantee success.
   • A specific plan made in an organisation clearly indicates the objective to be achieved and ways of doing work. Since, a manager may not be able to change these plans, it leads to rigidity.

Answer 15:
(i) Emotional and economic values of a customer are affected in this case, as she purchased an expensive saree and wore it only on a couple of occasions.
(ii) Right to Seek Redressal As per the Consumer Protection Act, the consumer has a right to get relief in case the product falls short of his/her expectations. Several reliefs are available like removal of defect in the product, compensation paid for any loss, etc. So, she can exercise this right and can raise her voice against the dealer.

Answer 16:
(i) No, the sales manager is not responsible because he was not given authority to increase the sales promotion expenses.
(ii) The principle of authority and responsibility is being violated in the given case.
(iii) Two effects of violating this principle are stated below:
(a) Subordinates will not be able to complete the task effectively (in time).
(b) Violation of this principle may lead to delay in decision-making.

Answer 17:
Delegation of authority is important for an organisation because of the reasons discussed below:
(i) Motivation of Employees Delegation provides a feeling of status and recognition to subordinates, as it is not only a process of sharing workload, but also involves trust of the superior on his subordinate. Entrustment of responsibility builds up his esteem and encourages him to perform better.
(ii) Facilitation of Growth Delegation helps in the expansion of an organisation by providing a ready workforce to take up leading positions in new ventures. Trained and experienced employees are able to play significant role in launching new projects of the organisation.
(iii) Basis of Management Hierarchy Delegation of authority establishes superior-subordinate relationships, ’ which are the basis of hierarchy of management. This helps employees to know ‘who has to report to whom’.
Thus, duties and powers of each individual becomes clear.
(iv) Better Coordination The elements of delegation namely authority, responsibility and accountability helps to define the powers, duties and responsibilities related to various positions in an organisation. This helps to avoid overlapping and duplication of work and facilitates coordination, as it gives a clear picture of the work being done at various levels.

Answer 18:
Working Capital The capital invested in current assets such as stock of materials and finished goods, accounts receivable, bills receivable and bank balances for meeting day-to-day expenses is known as working capital.
Factors affecting the working capital requirements are:

1. Nature of Business A trading organisation and a service industry firm usually needs a smaller amount of working capital as compared to a manufacturing organisation.
2. Scale of Operations Organisations which operate on a large scale, their quantum of inventory and debtors required is generally high. Such organisations, therefore, require large amount of working capital as compared to the organisations which operate on a lower scale.
3. Credit Availed Just as a firm allows credit to its customers, it also may get credit from its suppliers. To the extent, it avails the credit on purchase, the working capital requirements is reduced.

Answer 19:
Features of demonetisation are as follows:

1. It is a radical monetary step in which a currency unit’s status as a legal tender is declared invalid.
2. It usually occurs when their is a change in currency by the government.
3. It is an attempt to make a cashless, corruption free and digital society.
4. It is a strict measure by the government against tax evasion.
5. It helps in channelising more savings into the formal financial system.

Answer 20:
This statement is not true. An ideal control system should concentrate on key aspects of performance. There are several activities to be controlled. In practice, it is not possible for management to control each and every activity due to limited time.

Moreover, minor deviations from plans and targets are insignificant for success. Therefore, an attempt to control everything is likely to be a futile exercise. Control system should focus attention on exceptional and key factors only. This will help to save time, efforts and money. Thus critical point control is an ideal technique where focus is on the key result areas.
On the other hand, controlling each and every activity results in delays, increased cost and neglect of key items. The control system should be designed in such a manner that only significant deviations from the standards are reported to the higher level managers. Thus, management by exception technique should be followed and deviations within an acceptable range should be ignored.

Answer 21:

1. (a) The National Optic Fibre Network (NOFN) Project of government is associated with political, social, technological and economic environment, as this project will satisfy the social needs of people, as well as, provide them opportunities of jobs, impressive wages, etc.
   (b) Secondly, it connects the villages with a fibre optic network, which depicts the best example of innovations or advancement of technologies.
   (c) The National Optic Fibre Network (NOFN) Project is being overseen by a new entity called Bharat Broadband Network Limited (BBNL) and is being executed by BSNL and Mahanagar Telephone Nigam Limited (MTNL).
   This project will prove to be beneficial not only for villagers but from this, persons involved in testing, civil work, logistics, local vendors, antenna- suppliers, technicians will also feel benefitted and will be able to satisfy their basic needs.
2. This project adds following values to the society:
   (a) Raising of standards of living and development of society.
   (b) Employment opportunities and economic development in rural areas.

Answer 22:
For filling up the vacant posts, following five external sources of recruitment can be used:
(i) Direct Recruitment Under direct recruitment, a notice is placed on the notice board of the enterprise specifying the details of the jobs available. Job seekers assemble outside the organisation on the specified date and selection is done on the spot. This source may be used for the office staff, teachers and primary teachers.
(ii) Advertisement Advertisement in newspaper is generally used when wider choice is required. The advantages of advertising vacancies is that more information about the organisation and job can be given in the advertisement. It gives the management a wider range of candidates from which to choose.
(iii) Employment Exchange Employment exchanges run by the government are regarded as a good source of recruitment. It helps to match personnel demand and supply by serving as a link between job seekers and
employers.
(iv) Recommendations of Employees Employees of an organisation recommend the names of their friends, relatives and neighbours, which prove to be a good external source of recruitment. It is a reliable source as the background of the suggested candidate is well known.
(v) Web Publishing Internet is becoming a common source of recruitment these days. There are many website?, like naukri.com, monster, com, etc designed to provide information to both job seekers and employers.

Answer 23:
As per the given details, company enjoying the favourable financial leverage can be identified as below:

Company B is in the position of favourable financial leverage as use of debt increases the EPS and thus, the situation is considered as favourable for trading on equity.

Answer 24:
Maslow’s Need Hierarchy Theory of Motivation was given by Abraham Maslow. It is based on human hierarchy of five needs which are depicted and explained below:

(i) Basic Physiological Needs These are the basic needs, which a person is required to satisfy in order to survive. Hunger, thirst, shelter and sleep are some of the examples of these needs. In an organisation, basic salary helps to satisfy these needs.
(ii) Safety/Security Needs These needs are concerned with physical, economic and social security, in the form of job security, stability of income, etc.
(iii) Affiliation/Belongingness/Social Needs These needs are concerned with affection, sense of belongingness acceptance and friendship. It is fulfilled when employees have cordial relations with colleagues.
(iv) Esteem Needs These needs include factors such as self-respect, status and recognition. When these needs are fulfilled through job title, it enhances self-confidence and prestige of employees.
(v) Self-actualisation Needs It is the highest level of need in the hierarchy. It arises after the satisfaction of all previously discussed needs. These needs include growth, self-fulfilment and achievement of goals.

Assumptions of Maslow’s Need Hierarchy Theory
The main assumptions of Maslow’s need hierarehy theory are :

1. People’s behaviour is based on their needs. Satisfaction of such needs influences their behaviour.
2. People’s needs are hierarchical in order. They start from basic physiological needs and reach to high level needs.
3. A satisfied need can no longer motivate a person, only next higher level need can motivate a person.
4. A person moves to the next higher level need, only when the lower level need is satisfied.

Answer 25:
Channels of Distribution Channels of distribution are set of individuals and firms that take title or assist in transferring title of particular goods and services as they move from producers to consumers, it refers to a team of merchants, agents and business institutions that combine physical movement and title movement of products.

Functions of Channels of Distribution Channels of distribution smoothen the flow of goods by creating possessions, place and time utilities. Some important functions performed by them are:

1. Sorting It refers to the process of sorting the product into homogeneous groups on the basis of size, quality, features and price.
2. Accumulation It refers to the process of accumulation of goods into larger homogeneous stocks. This helps to maintain a continuous flow of supply.
3. Allocation It involves breaking homogeneous stocks into smaller and marketable lots. This helps in making sales easily according to different requirements of different buyers.
4. Assorting It refers to the process of combining various goods of the same line of product, for sale to customers such as a cricket kit containing a bat, a ball, gloves, wickets, stumps, helmet and leg guards.

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